Leading gold exporter Rajesh Exports Ltd. has come under renewed regulatory scrutiny, this time over its audit process and financial reporting practices. Documents reviewed during the ongoing examination indicate that a limited-purpose, non-statutory opinion issued by KPMG Switzerland for the company’s Swiss subsidiary, Global Gold Refineries AG (GGR), may have been used in preparing the group’s consolidated financial statements. The document was explicitly marked “For Internal Use Only,” raising fresh questions about the transparency of the audit process and the extent of independent verification carried out before the financial statements were signed off.
The development comes after the Securities and Exchange Board of India (Sebi), in its interim order dated 3 June, highlighted alleged irregularities in the company’s financial reporting and related-party transactions. Sebi stated that it was unable to independently verify more than 98% of the company’s reported revenue during its preliminary examination. Following the regulator’s action, the company’s shares declined by around 11%.
The review has also revealed that different audit firms were engaged across various entities within the group. ACC Energy Storage Pvt. Ltd., the company’s battery business, was audited by Bengaluru-based P.V. Ramana Reddy & Co., while Elest Pvt. Ltd., another EV battery venture in which promoter Rajesh Mehta holds approximately 90% ownership, appointed Price Waterhouse Chartered Accountants LLP (PwC) as its auditor.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Another significant aspect of the case is the resignation of ACC Energy Storage’s auditor, who cited regulatory reasons for stepping down. Regulatory filings indicate that the expiry of a key certification required for the audit assignment made it impossible to continue the engagement. The resignation has further intensified questions regarding the company’s audit framework and regulatory compliance.
Investigators are now examining the extent to which the audits of the group’s Indian and overseas entities were independently verified. A key focus is whether a limited-purpose, non-statutory opinion was relied upon in preparing the consolidated financial statements and, if so, whether such reliance complied with applicable accounting and auditing standards.
Financial experts note that in multinational corporate groups, independent verification and adequate documentary evidence are essential during the audit of entities operating across different jurisdictions. If consolidated financial statements rely significantly on limited-purpose internal opinions, regulators may subject the audit process to heightened scrutiny.
Related-party transactions remain another major area of investigation. Sebi had already raised preliminary concerns in this regard, and regulators are now reviewing inter-company transactions, revenue recognition practices, audit reports and accounting records to determine whether any material discrepancies exist in the company’s financial statements.
Cyber and financial crime expert and former IPS officer Prof. Triveni Singh said that in large corporate investigations, examining accounting records alone is not sufficient. Where a company operates through multiple domestic and overseas entities, a scientific analysis of audit trails, related-party transactions, independent verification and documentary evidence becomes critical. According to him, regulators rely on such examination to ensure financial transparency and protect investors’ interests.
The Sebi investigation is continuing, with regulators undertaking a detailed review of the company’s financial records, audit documentation and related-party transactions. Final findings are expected only after the investigation is completed, following which any further regulatory action will be determined.
