Filatex Fashions Limited, a prominent player in the fashion industry, has announced the simultaneous resignation of both its statutory and secretarial auditors, effective November 13, 2025. This unexpected development has raised eyebrows in corporate governance circles.

Statutory Auditor Resignation

M/s Pundarikashyam and Associates, the statutory auditors of Filatex Fashions Limited, have tendered their resignation citing internal reasons. In their resignation letter, the firm stated:

"Due to internal reallocation of audit resources and strategic priorities within our firm, we are constrained to discontinue certain audit engagements."

The statutory auditors confirmed that they have completed their responsibilities up to the most recent quarter:

• Issued the limited review report for the quarter ended September 30, 2025, on November 11, 2025
• Completed the audit for the financial year 2024-25 and issued the report

Secretarial Auditor Resignation

Simultaneously, M/s Akhilesh Singh Associates, the secretarial auditors, have also stepped down from their role. Their resignation letter cited:

"We hereby tender our resignation as the Secretarial Auditor of Filatex Fashions Limited due to pre-occupation in other professional activities."

Key Details of the Resignations

Impact and Assurances

Both auditing firms have assured that there are no material concerns or reasons for their resignations other than those stated. Filatex Fashions Limited has confirmed that no material issues were raised by either auditor during their tenure.

The company will now need to appoint new statutory and secretarial auditors to ensure compliance with regulatory requirements. This process will be closely watched by shareholders and regulatory bodies alike.

Looking Ahead

While the simultaneous resignation of both auditors is unusual, it's important to note that both firms have cited internal reasons rather than any issues with the company's financial statements or corporate governance practices. Filatex Fashions Limited will need to act swiftly to appoint new auditors to maintain transparency and regulatory compliance.

Investors and stakeholders will be keenly watching how the company handles this transition and whether it impacts the timely filing of financial reports and regulatory disclosures in the coming months.

Filatex Fashions Limited , a prominent player in the textile industry, has announced its financial results for the quarter ended September 30, 2025, along with significant corporate developments that signal changes in the company's leadership and shareholding structure.

Financial Performance

For the quarter ended September 30, 2025, Filatex Fashions reported:

The company's revenue from operations for the half-year ended September 30, 2025, stood at Rs. 6,845.24 lakhs, with a net profit of Rs. 245.20 lakhs.

Appointment of New CFO

Filatex Fashions has appointed Mr. Prabhat Sethia as the Chief Financial Officer, effective November 11, 2025. Mr. Sethia brings over 34 years of experience in the spinning industry to his new role. A Commerce Graduate from Kolkata, Mr. Sethia has been instrumental in guiding the company's growth strategy and enhancing its technical capabilities.

Corporate Governance and Shareholding Updates

The Board of Directors has approved a change in the company's shareholding structure:

1. Reclassification of certain shareholders from Promoter/Promoter Group to Public Shareholder status has been initiated, subject to stock exchange and shareholder approvals.
2. The reclassification involves promoters who will not hold more than 10% equity, exercise control over company affairs, or be represented on the Board of Directors.

Key Shareholders Seeking Reclassification

The Board has confirmed that the company will remain compliant with the minimum public shareholding requirements post-reclassification.

Auditor's Review

Pundarikashyam and Associates, the company's statutory auditors, have conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial statements do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

These changes in Filatex Fashions' promoter holdings and leadership may be seen as steps towards enhancing corporate governance and preparing for future growth. Investors and market watchers will likely monitor how these changes impact the company's performance and market position in the coming quarters.