Classic Filaments Limited (CFL) has announced its financial results for the quarter ended September 30, 2025, revealing a net loss of ₹7.71 lakhs. This loss marks an improvement from the ₹10.96 lakhs loss reported in the same quarter of the previous year.

Financial Performance

The company reported no revenue from operations during the quarter, indicating continued challenges in its business activities. The financial results paint a picture of a company grappling with operational difficulties:

*As of the beginning of the year

The significant decrease in cash and cash equivalents from ₹70.90 lakhs at the beginning of the year to ₹3.71 lakhs is noteworthy, suggesting a substantial cash burn over the period.

Operational Challenges

The absence of revenue from operations for the quarter underscores the operational challenges faced by Classic Filaments. The company's net cash flow from operating activities stood at negative ₹8.96 lakhs, further highlighting the strain on its financial resources.

Income Tax Assessment

Adding to the company's concerns, the auditors have highlighted an ongoing income tax assessment under Section 263 of the Income Tax Act for FY 2018-19. The assessment pertains to alleged bogus purchases. However, the management of Classic Filaments maintains that the purchases are valid and expects no material impact on the current financial results.

Management Stance

Despite the challenges, the management's assertion regarding the validity of the purchases under scrutiny by tax authorities indicates their confidence in the company's financial practices. Their expectation of no material impact on current financial results suggests a belief in a favorable outcome of the tax assessment.

Investor Considerations

For investors and market watchers, these results and ongoing tax scrutiny present a complex picture:

• The reduction in net loss year-over-year may be seen as a marginal positive.
• The lack of operational revenue raises questions about the company's business model and future prospects.
• The significant decrease in cash reserves could be a concern for the company's liquidity position.
• The outcome of the income tax assessment could have implications for the company's financial standing and reputation.

As Classic Filaments navigates these challenges, stakeholders will be keenly watching for any signs of operational revival and the resolution of the tax assessment issue in the coming quarters.

In a significant corporate action, four individual acquirers have announced an open offer to acquire up to 26% stake in Classic Filaments Limited (CFL), a BSE-listed textile trading company. The move comes as part of a larger acquisition plan that could lead to a change in the company's management and control.

Open Offer Details

The acquirers, Mr. Sumit Bansal, Mr. Vikkas Bansal, Mr. Tarun Jain, and Mr. Varun Jindal, have offered to purchase up to 15,89,471 equity shares, representing 26% of CFL's total paid-up equity and voting share capital. The offer price is set at Rs 12.00 per share, valuing the potential transaction at Rs 1,90,73,652.00.

Background of the Acquisition

This open offer follows a Share Purchase Agreement (SPA) between the acquirers and CFL's existing promoters. Under the SPA, the acquirers have agreed to purchase 41,88,549 shares (68.51% stake) from the current promoters at Rs 10.00 per share. The combined transactions, if successful, could result in the acquirers gaining up to 94.51% ownership in Classic Filaments Limited.

Key Points of the Offer

• Offer Period: December 17, 2025 to December 31, 2025
• Escrow Account: Rs 1,96,00,000.00 deposited, exceeding the required amount
• Company Status: CFL has been non-operational for the last 3 years
• Valuation: A registered valuer has assessed the fair value at Rs 11.96 per share

Implications for Shareholders and the Company

This open offer presents an opportunity for Classic Filaments Limited's public shareholders to exit at a premium to the recent market price. For the acquirers, successful completion of the offer could lead to management control and potential revival of the company's operations.

Regulatory Compliance

The acquirers have committed to complying with all relevant SEBI regulations, including maintaining the minimum public shareholding requirement of 25% post-acquisition.

Offer Summary

Shareholders are advised to carefully consider the offer details and seek independent financial advice before making a decision. The completion of this offer could mark a new chapter for Classic Filaments Limited, potentially bringing fresh management and strategic direction to the company.