Rajesh Exports fails to file auditor report

Rajesh Exports' omission in filing a key report along with its audited financial results for the year ended March 2023 is raising eyebrows on Dalal Street.

The gold refiner and manufacturer, which posted revenues of ₹3.4 lakh crore in FY23 and has a market value of over ₹17,000 crore, did not put out its audit report and a comparative number of cash flow statements when it announced its FY23 and Q4 results on May 30. Chartered accountants said the audit report - the auditor's note on the company's financial statement - is tracked closely by investors. Rajesh Exports did not respond to ET's query on the matter.

A senior company official said the omission of the audit report filing was 'inadvertent' but the firm is ready to submit it if exchanges ask for it.

PL Venkatadri, partner at BSD & Co, the statutory auditor for Rajesh Exports, said the firm has signed and delivered the audit report but is unaware whether the company has filed it along with the results to stock exchanges.

"We have audited the cash flow statements. We are unaware whether the company has filed cash flow with corresponding previous year figures along with the results to the stock exchanges," said Venkatadri. India's Companies Act mandates companies to disclose the auditor's report along with the financial results. According to market participants, not filing audit reports raises concerns over corporate governance.

"It's unusual and alarming that such a large company missed out on filing important financial statement components," said Nimish Maheshwari, an independent analyst. "Under Section 134 of the Companies Act 2013, companies must file audit reports and financial statements. Additionally, as per Ind-AS 1, comparative financial statements, including balance sheet, P&L statement, and cash flow statement, must be submitted, offering insights into the preceding year."