Rajesh Exports Limited
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Briefing
Rajesh Exports Limited — the brief
Forensic posture: Material flags. The auditor gave an unqualified opinion despite flagging a material Canara Bank litigation and accounting software audit-trail gap; the bigger concern is ₹2,613 Cr of very old trade receivables with zero provision and ₹1,457 Cr owed to a subsidiary, though contingent liabilities are tiny (₹13.65 Cr, 0.1% of net worth) and the company sits in the safe bankruptcy-risk zone.
Auditor’s report (CARO 2020)
Auditor’s assessment Material flags. Auditor: B S D & CO. Opinion: Unqualified. Fiscal year FY24-25. 0 critical, 1 material, 1 minor flag.
- Ongoing litigation with Canara Bank: Company is facing an unresolved dispute with Canara Bank over balance discrepancies pending tribunal resolution, with amounts disclosed but liability not admitted.
Related-party transactions
Assessment Concerning. Disclosed volume of ₹154 Cr across 16 related parties. Fiscal year FY24-25.
- Large Fresh Investment in Subsidiary ACC Energy Storage: The company invested Rs. 15,300 lakhs (Rs. 153 Cr) in subsidiary ACC Energy Storage Pvt Ltd during the year (up from nil the previous year), representing a material deployment of capital into an entity in the energy storage business, a sect
- Massive Trade Payable Outstanding to Subsidiary Valcambi SA: The year-end trade payable to subsidiary Valcambi SA stands at Rs. 145,676.89 lakhs (Rs. 1,456.77 Cr), up from Rs. 137,866.04 lakhs (Rs. 1,378.66 Cr) prior year, representing a very large intra-group payable that warrants monitoring for set
- Borrowing Outstanding from Relative of KMP: Prashanth J. Mehta, classified as a Relative of KMP, has an outstanding borrowing balance of Rs. 9.61 lakhs with the company, unchanged from the prior year; while small, the nature and terms of this borrowing from a KMP relative are not dis
- Accounting Software Lacks Mandatory Audit Trail Feature: The auditor has flagged that both the Holding Company and its Indian subsidiary use accounting software without an audit trail (edit log) feature throughout the year, a statutory requirement under Rule 11(g), creating a risk that changes to
Contingent liabilities
Assessment Routine. Total disclosed: ₹14 Cr (0.1% of net worth). Fiscal year FY24-25.
Corporate governance
Board of 7 directors, 29% independent. Chair: Rajesh J Mehta. Chair and CEO roles are separated. Statutory auditor: B S D & CO. Board remuneration: 0.2% of net profit. Fiscal year FY24-25.
“The company has received CIT(A) – Income Tax order for AY 2019-20; 2018-19 and 2021-22 in its favour post Balance Sheet date on 25th April 2025.”
What retail misses·The ₹2,613 Cr pile of receivables older than 3 years is buried in a note-disclosure footnote and would not surface on mainstream screeners or in quarterly profit headlines — yet it represents 17% of net worth and is fully unreserved.
Strengths noted in disclosures: Contingent liabilities are minimal at ₹13.65 Cr (0.1% of ₹15,681 Cr net worth) — mostly old tax demands under appeal with favorable CIT(A) orders received · Altman Z-score of 15.3 places the company well into safe (non-distress) territory; cash flow matches reported profit, indicating earnings quality
Forensic signal
From the company's own filingsStrong: Momentum · Weak: 52-Week · Yield