Rajesh Exports carries an unqualified audit opinion across six years, but that opinion sits beside a SEBI order alleging revenue misstatement at its Swiss subsidiary, over ₹200.54 crore of loans outstanding with irregular repayments and zero provision, and a decade in which operating cash flow covered only half of adjusted profit. The company calls itself debt free while holding more than ₹1,000 crore of short-term secured borrowings against its own deposits.
Key findings
- Operating cash flow chronically trails reported profit
Major- Over the ten years through FY2026, cumulative cash flow from operations of ₹4,109 crore covered only 0.52 times cumulative PAT adjusted for other income. ROCE fell from 10.10% in FY2023 to 1.79% in FY2026. The Board recommended no dividend for FY2023-24 and FY2024-25. - The company claims to be "debt free" while carrying over ₹1,000 crore of short-term borrowings
Major- The company stated it is "debt free" in its MD&A for each year from FY2020 through FY2025, and repeated the claim on 5 June 2026. Total borrowings stand at ₹1,016 crore as of the latest FY, all classified as short-term. The CARO report for FY2025 states the company has been sanctioned working capital limits in excess of ₹5 crores from banks on the security of its own fixed deposits. - Audit opinions are unqualified but the auditor flags missing audit-trail, unaudited subsidiary financials, and a ₹200.54 crore overdue loan
Major- The auditor reported that the accounting software lacks an audit-trail feature throughout FY2024 and FY2025. Consolidated financial statements for every year from FY2020 through FY2025 incorporate unaudited financials of foreign subsidiary REL Singapore Pte Ltd and its step-down subsidiaries. In FY2025, the auditor reported loans outstanding of ₹200.54 crore with irregular repayments, and the company has initiated legal action.
What to watch
- SEBI interim order. Outcome of the SEBI interim order dated 3 June 2026 and the company's submission of documents in response.
- ED search. Outcome of the ED search concluded on 25 June 2026 and any subsequent regulatory action.
- Aged receivables. Recovery or provision against consolidated trade receivables of ₹6,442 crore as of FY2025-26.
- Overdue loan recovery. The ₹200.54 crore overdue loan balance with irregular repayments reported in FY2025 remains subject to legal action initiated by the company; no resolution date is disclosed.
- Audit-trail system. The company stated in the FY2025 annual report that it is developing a new ERP with an audit-trail feature; no completion date was provided.
Bottom line: This is a record where the audit opinion says one thing and the cash register says another. A SEBI order alleging fabrication-level misreporting at the main operating subsidiary, a decade of profit that did not convert to cash, and a ₹200.54 crore overdue loan with irregular repayments form a single question about the substance of reported earnings. The "debt free" claim and the gap between governance reports and financial disclosures add a layer of presentational risk. Watch the SEBI proceeding and whether those aged receivables ever turn into cash.