Interesting. Wool is another fabric that smells foul when burned but I have yet to come across a Hinomaru no Yosegaki made of wool and yours does not look like wool. Hemp and Linen were also used but they don't usually smell that bad when burned. Keep in mind that the age of the fabric and the conditions under which it has been stored could effect the smell.
Regardless, that's a nice flag, worthy of preservation and I'm sure that the poem can be translated given a bit of time.
A very nice Hinomaru Yosegaki flag. Congrats!
The few columns on the right side are poems, however I can't read them.
I have a mint IJN rising sun flag made of wool, and is my only example.
Then I will just imagine the poems talk about peaceful times among cherry trees with family and friends.
Thanks for your confirmation Taka-san!
"Only a real risk tests the reality of a belief." - C.S. Lewis