Faze Three Limited has notified stock exchanges regarding the structural conversion of its statutory auditor from a traditional partnership to a Limited Liability Partnership format. The announcement, made on January 28, 2026, provides details about the auditor's organizational restructuring and its implications for the company's audit arrangements.

Auditor Conversion Details

The company's statutory auditor, MSKA & Associates, Chartered Accountants, has converted into a Limited Liability Partnership under the provisions of the Limited Liability Partnership Act, 2008. The conversion became effective from January 13, 2026.

Continuity of Audit Services

Faze Three Limited has emphasized that the conversion does not result in any disruption to the existing audit engagement. The auditor will maintain continuity in their statutory responsibilities and continue to discharge their obligations as the company's statutory auditors for the remainder of their current tenure.

Regulatory Communication

The intimation was formally communicated to both BSE Limited and National Stock Exchange of India Limited on January 28, 2026. Company Secretary and Compliance Officer Akram Sati signed the notification, requesting the exchanges to update their records accordingly.

The auditor firm, now operating as MSKA & Associates LLP, is headquartered at Raheja Titanium, Western Express Highway, Goregaon (E), Mumbai. Partner Rajesh Murarka signed the formal communication to Faze Three Limited regarding the conversion on January 23, 2026.

Administrative Impact

The structural change represents a standard business reorganization that allows the audit firm to operate under the LLP framework while maintaining all existing professional relationships and commitments. The conversion ensures business continuity without affecting the quality or scope of audit services provided to Faze Three Limited.

Faze Three Ltd., a prominent home interior products manufacturer and exporter, saw its stock price surge to the 20% upper circuit limit at ₹547.00 amid growing optimism surrounding potential India-US trade talks. The company, which generates 90% of its revenue from exports to US, EU, and UK markets, with 57% coming specifically from the US, found itself at the center of investor attention.

Market Performance

The stock's impressive rally was accompanied by a surge in trading volume, with 6.5 lakh shares changing hands in the first hour of trading, significantly outpacing the 20-day average of 31,000 shares. This surge in interest pushed Faze Three's market capitalization to ₹1,330.00 crore.

Trade Talk Optimism

The positive sentiment was fueled by encouraging statements from US President Donald Trump and Indian Prime Minister Narendra Modi, who expressed a positive outlook on continuing trade discussions between the two nations. This development has sparked hope for improved trade relations, potentially benefiting companies like Faze Three that have a substantial export presence in the US market.

Company Overview

Faze Three Ltd., founded in 1985, has established itself as a key player in the home and technical textiles industry. The company boasts a diverse product portfolio, including:

• Bathmats and bathrugs
• Blankets
• Mats
• Chairpads
• Carpets
• Beach towels
• Other top-of-the-bed products

With manufacturing units in Panipat, Silvassa, and Vapi, Faze Three has built a strong reputation in the global market, particularly in the US, UK, and major European countries.

Ownership Structure

The company's ownership structure reveals:

• Promoter holding: 57%
• Ashish Kacholia's stake: 5.42% (valued at approximately ₹72.00 crore)

Notably, the company currently has no institutional holdings or analyst coverage.

Recent Financial Performance

According to the latest available financial data, Faze Three reported:

Credit Rating Reaffirmation

CARE Ratings Ltd. has reaffirmed Faze Three's Long-term & Short-term Bank Facilities rating at CARE A / CARE A1. However, the ratings have been placed under 'Rating Watch with Negative Implications' due to uncertainty surrounding the impact of additional 25% tariffs levied by the US Government on textile imports from India, effective August 27.

Outlook and Challenges

While the company's financial risk profile remains comfortable with an adjusted overall gearing of 0.56x, the potential impact of the new US tariffs on Faze Three's revenue and profitability remains a key concern. The company's high geographical concentration, with over 50% of revenue coming from US exports, exposes it to risks arising from evolving demand prospects in the US market.

As the textile industry navigates through these challenging times, Faze Three's ability to adapt to changing market dynamics and potentially diversify its geographical presence will be crucial in maintaining its growth trajectory and financial stability.

The stock's recent surge reflects investor optimism, but the company's performance in the coming quarters will be closely watched as it deals with the potential implications of the new tariff structure and global trade dynamics.