Flexituff Ventures International Limited's statutory auditor, M/s. Mahesh C. Solanki & Co., resigned effective June 19, 2026, citing prolonged non-payment of outstanding audit fees and a severe deadlock regarding the company's business operations. The firm stated that despite several reminders and follow-ups, the dues remained unpaid, necessitating the resignation. The auditor also noted that the inability to obtain sufficient appropriate audit evidence was due to circumstances beyond the control of management, which could have a significant impact on the financial statements.

The resignation was disclosed in a regulatory filing submitted by Whole Time Director Rahul Chouhan. The auditor, appointed on September 30, 2025, had a term scheduled to expire on March 31, 2030. Prior to resigning, the firm had submitted the Independent Auditor's Report on Annual Standalone and Consolidated Results for the quarter and year ended March 31, 2026, dated May 30, 2026.

Auditor Details and Reasons

The filing detailed the specific reasons for the resignation and the auditor's efforts to resolve the issues before stepping down. The firm confirmed that it had approached the company with reminders regarding the non-payment of dues but found no resolution. The operational deadlock further complicated the situation.

Regulatory Compliance

M/s. Mahesh C. Solanki & Co. confirmed that it will file the mandatory Form ADT-3 with the Registrar of Companies within 30 days of the resignation, indicating the reasons as stated. The firm expressed gratitude to the management and staff for the cooperation extended during its tenure. The resignation follows the submission of the standalone and consolidated statutory audit reports for the year ended March 31, 2026.

Flexituff Ventures International Limited submitted newspaper publications for its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The advertisement submission is scheduled for June 01, 2026, under Regulation 47 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. This follows the Board of Directors' approval of the results on May 30, 2026.

The company reported a widened net loss of ₹13,487.87 lakhs for FY26, compared to a profit of ₹23,564.66 lakhs in the previous year. Revenue from operations declined sharply to ₹1,680.06 lakhs from ₹28,857.17 lakhs in FY25. The financial performance was impacted by operational disruptions and a management deadlock, which have cast significant doubt on the company's ability to continue as a going concern.

Financial Performance

Auditor's Adverse Opinion

Mahesh C. Solanki & Co., Chartered Accountants, issued an adverse opinion, citing a net loss of ₹13,487.87 lakhs and current liabilities exceeding current assets by ₹32,233.86 lakhs. The auditors stated that the use of the going concern basis of accounting is inappropriate due to the absence of necessary audit evidence. A management deadlock prevented critical audit procedures, including independent balance confirmations and inventory verification.

Operational and Regulatory Challenges

The company faced operational disruptions at its Kashipur plant due to raw material shortages and a labour strike from unpaid wages. Lending banks have issued notices under the SARFAESI Act for outstanding dues of ₹25,971.26 lakhs. Additionally, the company failed to conduct an internal audit during the financial year, violating Section 138 of the Companies Act, 2013, and has not accrued statutory liabilities for employee benefits.