Flexituff Ventures International Limited Stock Analysis

Business Transfer Agreement executed in FY24 generated exceptional gain of Rs 37,760.23 lakhs from sale of FIBC business to Flexituff Technology International Limited, though this was a one-time event / One-time settlement with IFCI Ltd and FCCB holders (TPG Growth II, IFC) in Q1 FY25 resulted in Rs 16,585.09 lakhs gain, providing temporary relief from debt obligations / The company operates in technical textiles segment with presence across 14 subsidiaries globally including UK and Cyprus entities / Prior restructuring efforts with consortium banks attempted to transfer Rs 8,394.96 lakhs of bank limits to the subsidiary FTIL

Auditor issued disclaimer of conclusion citing inability to access server, financial records at manufacturing plant, and complete bank statements - making financial results unverifiable and unreliable / Company disclosed disruption of financial obligations and operational losses in November 2025, with auditors noting significant doubt on going concern ability / Net current liabilities position exceeds Rs 46,000 lakhs with working capital facilities withdrawn by banks in November 2025, creating severe liquidity crisis / Consolidated net loss of Rs 6,581.37 lakhs for nine months FY26 versus profit of Rs 24,948.25 lakhs prior year (which included Rs 54,345.32 lakhs in one-time gains), indicating core operations are deeply unprofitable / Deferred tax assets recognized without sufficient evidence of future taxable profits, with management unable to provide supporting documentation due to missing records / Foreign subsidiaries Flexiglobal Holding (Cyprus) and Flexiglobal UK are under liquidation process with assets of Rs 547.28 lakhs, signaling global operations failure

The company had previously executed a slump sale of the FIBC business (completed 30 April 2024) and reported an exceptional gain of Rs 37,760.23 lakh, which materially strengthened reported historical profitability. / It also recorded a one-time settlement gain of Rs 16,585.09 lakh (quarter ended 30 June 2024), showing active liability restructuring efforts with lenders/investors. / Despite disruption, operations are not fully shut: consolidated revenue from operations was still positive at Rs 1,653.08 lakh in 9M FY26. / The group has capped further P&L drag from its associate by not recognizing additional Rs 1,183.95 lakh share of losses after investment value reached nil and no funding obligation existed under Ind AS 28. / Paid-up equity capital remains Rs 3,282.28 lakh, providing some residual capital base while restructuring/normalization efforts continue.

Auditor disclaimer on both standalone and consolidated results: significant limitations in accessing complete financial information mean reported numbers could be misstated. / Severe demand/operations collapse: consolidated Q3 revenue from operations declined to about Rs 26.66 lakh from Rs 6,298.20 lakh YoY, and 9M revenue fell to Rs 1,653.08 lakh from Rs 22,799.41 lakh. / Profitability is deeply negative on current run-rate: parent reported 9M net loss of Rs 6,581.37 lakh and Q3 basic EPS of -8.93 (9M EPS -20.05). / Balance-sheet stress is acute: net current liabilities are Rs 54,363.19 lakh, and management states operations are presently based on drawing power sanctioned by banks in November 2025. / Going-concern risk is explicitly disclosed; inability to access server/primary records and missing bank statements from all banks undermine financial control and visibility.