Flexituff Ventures reported a standalone net loss of ₹1,568.38 lakh for the quarter ended June 30, 2026, driven by zero operating revenue and mounting finance costs. The company’s auditors issued a disclaimer of opinion, citing an inability to verify financial statements due to severe operational deadlock and management disputes.

The technical textile manufacturer recorded no revenue from operations in Q1FY27, a sharp decline from ₹1,111.20 lakh in the same period last year. Total expenses stood at ₹1,596.95 lakh, dominated by finance costs of ₹759.45 lakh and depreciation of ₹600.50 lakh. Other income contributed ₹28.57 lakh, insufficient to offset the heavy fixed costs incurred during the period of halted production.

Governance and Audit Concerns

Mahesh C. Solanki & Co., the statutory auditors, resigned effective June 19, 2026, citing prolonged non-payment of audit fees. In their limited review report dated August 21, 2026, the firm stated it could not confirm the accuracy or completeness of the financial information. The report highlighted that the company has reached a deadlock position regarding management and business operations, significantly restricting review procedures.

Furthermore, the company remains non-compliant with statutory requirements under the Companies Act, 2013. It has not appointed an Internal Auditor as mandated by Section 138, nor has it filled the vacant position of Whole-Time Company Secretary required under Section 203 and SEBI LODR regulations.

Liquidity Crisis and Legal Actions

The financial strain is evident in the company’s balance sheet signals. As of June 30, 2026, Flexituff Ventures held a net current liability position of ₹32,545.84 lakh. The company has been unable to renegotiate its Cash Credit facilities or Working Capital Term Loans. Consequently, total dues including accrued interest reached ₹30,935.76 lakh, prompting lending banks to issue notices under the SARFAESI Act.

Operations at the Kashipur plant in Uttarakhand remain disrupted due to labor strikes arising from unpaid wages and a shortage of critical raw materials. These conditions cast significant doubt on the company’s ability to continue as a going concern, although the financial statements have been prepared on a going concern basis based on management’s assessment.

What the Numbers Show

The divergence between zero operating revenue and persistent high fixed costs underscores the severity of the operational halt. Finance costs (₹759.45 lakh) and depreciation (₹600.50 lakh) together accounted for approximately 85% of total expenses, indicating that the company is burning cash primarily to service debt and maintain asset values rather than fund productive activities. Additionally, the forfeiture of ₹516.78 lakh from convertible warrants issued in September 2024 highlights failed capital raising efforts during this distress period.

Corporate Actions

During the adjourned board meeting held on August 21, 2026, directors approved the unaudited standalone and consolidated results for Q1FY27. The board also scheduled the 33rd Annual General Meeting for September 30, 2026, to be conducted via video conferencing. Notably, the board filed an application with the Registrar of Companies to change the company name to “Kaashipur Ventures International Limited,” subject to approval.

Flexituff Ventures International Limited issued a corrigendum on August 19, 2026, to correct inadvertent typographical errors in the names of two independent directors appointed by its Board on August 12, 2026. The update clarifies the correct identities of Mrs. Surabhi Singh Rathod and Mr. Siddharth Shankar Mahajan, replacing the previously disclosed names of Mrs. Surabhi Kumar Rathod and Mr. Siddharth Mahajan.

The Board of Directors had approved the appointments during its meeting held on August 12, 2026, subject to final shareholder approval. Both directors serve a term of 12 months starting from August 12, 2026.

Director Profiles

The company provided updated professional backgrounds for the appointees under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

• Mrs. Surabhi Singh Rathod: A qualified Company Secretary with practical experience in corporate compliance and secretarial matters. She holds DIN 11878920 and will contribute expertise in corporate governance, statutory compliance, and regulatory affairs.
• Mr. Siddharth Shankar Mahajan: A qualified Chartered Accountant with practical experience in accounting, taxation, and financial compliance. He holds DIN 10819584 and will provide oversight on financial matters, corporate governance, and statutory compliance.

Regulatory Disclosures

The intimation was issued pursuant to Regulation 30 of the SEBI Listing Regulations read with Para A of Schedule III. The company confirmed that neither director is related to any existing director of the company. Additionally, both appointees are not debarred from holding the office of Director by any SEBI order or other authority.

The details were uploaded to the company’s website and communicated to the BSE Limited and National Stock Exchange of India Limited.