Kriegsmarine "Flotilla" Cloth Emblem

I took this off a Kriegsmarine Sailor Cap Talley that was is about 10 plus piece about 30 years ago, have not been able to identify, for U-BOAT ??? or some other ships ??. It is machine woven in golden yellow and white on dark blue cotton material, it is about 1-3/4 inches high. Shows light wear and age. Exc. + $75.00 RARE