BENGALURU — An investigation released Wednesday uncovered accounting and operational irregularities at Rajesh Exports. The investigation found accounting discrepancies totaling 30 billion rupees and an under-reporting of physical gold inventory by approximately 40%.

The Directorate of Enforcement stated that the company's key business indicators showed departures from normal commercial practices. Market regulators had raised concerns over Rajesh Exports' reported revenue weeks prior to the investigation's release. Last year, Rajesh Exports reported consolidated revenue exceeding 7.7 trillion rupees ($81 billion).

The investigation also found alleged stock manipulation at Rajesh Exports and identified insufficient records for foreign transactions. Additionally, it was noted that the company's managing director was paid a monthly salary of 17,000 rupees (around $180), and its chief financial officer had not received a salary since 2020.

Search and seizure operations were conducted at Rajesh Exports' offices in Bengaluru, where the company is based, and Mumbai. The company exports gold jewelry and gold products from Switzerland, India, and Dubai. Rajesh Exports owns Valcambi, a gold refiner based in Switzerland.

In a separate investigation earlier this month, the Securities and Exchange Board of India (SEBI) found that 97% to 99% of Rajesh Exports' revenues appeared inflated. The regulator described the revenue gap as 'egregious and unheard of' and issued a notice seeking an explanation.

Shares of Rajesh_Exports dropped around 5% on Thursday, hitting the exchange-imposed lower trading limit. Rajesh Exports stated that it "has never indulged in any mis-reporting and all its filings, financial numbers including revenue is true and genuine."