--- title: "Edition No. 3 | 15 June 2026 | BNPS and Associates LLP" url: "https://bnpsca.com/insight/edition-no-3-15-june-2026" description: "KEY HIGHLIGHTS: • SEBI interim order: Rs.15.15 lakh crore consolidated revenues of Rajesh Exports under scrutiny — forensic audit ordered. • Audit rotation w..." --- # Edition No. 3 \| 15 June 2026 Written by: **[CA Chintan Patel](https://bnpsca.com/partner/ca-chintan-patel)** \| Topic: **Board Members** ![Edition No. 3 | 15 June 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:1200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7aaa5d87c11-Images-3.jpeg)15-06-2026 KEY HIGHLIGHTS: • SEBI interim order: Rs.15.15 lakh crore consolidated revenues of Rajesh Exports under scrutiny — forensic audit ordered. • Audit rotation wave: 957 companies mandatorily changing auditors in FY2026-27 — India's largest rotation cycle. • SEBI BRSR Core: reasonable assurance now mandatory for top 500 listed companies from FY2025-26. | **B N P S AND ASSOCIATES LLP** \| Chartered Accountants | |---| | \| **BOARDROOM INTELLIGENCE** *Essential Insights on Financial Reporting, Audit, Governance, Regulation & AI* \| **15 June 2026** No. 3 \| | |---| | | **CHINTAN'S PERSPECTIVE** | |---|---| | ![Title: Chintan N. Patel - Description: Partner](https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png) **Chintan N. Patel** Partner - Financial Reporting & Assurance *B N P S And Associates LLP* | The SEBI interim order against Rajesh Exports is a defining moment for financial reporting oversight in India. When reported consolidated revenues of over fifteen lakh crore rupees across five years cannot be substantiated from the underlying entities, the failure is not merely one of accounting — it is a failure of audit, governance, and internal controls at every level. At the same time, the mandatory audit rotation wave arriving in 2026-27 presents boards with a rare opportunity: the incoming auditor brings fresh perspective, professional scepticism, and no legacy relationship to protect. Audit committees should treat this transition not as a compliance formality, but as a governance reset. The standards are clear. The question is whether those charged with governance choose to hold themselves — and their auditors — to them. | |---|---| | | **TOP DEVELOPMENTS** | |---|---| | **01** | **MCA Notifies Companies (Registered Valuers and Valuation) Amendment Rules, 2026** ***WHY IT MATTERS*** *Valuation framework for registered valuers amended — material implications for M&A, financing and regulatory compliance transactions.* The Ministry of Corporate Affairs notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2026 vide Gazette Notification No. G.S.R. 432(E). The rules introduce amendments to the framework governing registered valuers and valuation methods, aimed at improving transparency, accountability and accuracy in corporate valuations. The changes affect valuations conducted for mergers, acquisitions, fund-raises, insolvency proceedings and other regulatory compliance purposes. MCA has urged registered valuers, company secretaries and chartered accountants to familiarise themselves with the new requirements promptly. **PRACTICAL IMPLICATION** Professionals involved in corporate valuations should review the amended rules immediately. Boards relying on valuation reports for material transactions should confirm that their appointed registered valuers are compliant with the revised framework. | |---|---| | **02** | **IASB Issues IFRS 20 — Regulatory Assets and Regulatory Liabilities** ***WHY IT MATTERS*** *New accounting standard fills a longstanding gap for rate-regulated industries; entities in utilities, energy and infrastructure must prepare now.* The International Accounting Standards Board issued IFRS 20 Regulatory Assets and Regulatory Liabilities in May 2026, establishing a comprehensive accounting model for companies subject to rate regulation. The standard requires recognition of regulatory assets and liabilities, and introduces presentation and disclosure requirements for regulatory income and regulatory expense. Consequential amendments to other IFRS standards accompany the new standard. IFRS 20 is effective for annual periods beginning on or after 1 January 2029, with early adoption permitted. **PRACTICAL IMPLICATION** Indian companies preparing IFRS-compliant financial statements — particularly in power, utilities and infrastructure — should assess the applicability and impact of IFRS 20 on their financial position and disclosures well ahead of the 2029 effective date. | |---|---| | **03** | **SEBI Issues Interim Order Against Rajesh Exports — Rs.15.15 Lakh Crore Revenue Under Scrutiny** ***WHY IT MATTERS*** *India's largest reported financial misrepresentation allegation raises systemic questions about consolidated financial reporting and audit quality.* SEBI issued a 109-page ex-parte interim order on 3 June 2026 against Rajesh Exports Limited and its executive chairman, alleging prima facie misrepresentation of approximately Rs.15.15 lakh crore in consolidated revenues over FY2021 to FY2025. SEBI estimates shareholder wealth erosion of Rs.12,726 crore. The investigation found that 97 to 99 percent of reported revenues were attributed to overseas subsidiaries for which adequate supporting documentation was unavailable. SEBI has ordered a forensic audit. The order is interim and not a final adjudication. **PRACTICAL IMPLICATION** Audit committees and statutory auditors of companies with significant overseas subsidiary revenues should reassess the adequacy of documentation and audit evidence for consolidated revenue recognition. The case underscores the heightened risk attached to revenue reported through unaudited intermediate holding structures. | |---|---| | **04** | **Mandatory Audit Rotation Wave — 957 Companies to Change Auditors in FY2026-27** ***WHY IT MATTERS*** *India's largest mandatory auditor rotation cycle in history is underway; audit committees face critical governance decisions on incoming auditor selection.* Data from Primeinfobase.com indicates that 957 listed companies and 986 auditors are scheduled for mandatory rotation in FY2026-27 — compared to just 66 companies in FY2025-26. The spike reflects the ten-year maximum tenure cycle established under the Companies Act 2013. Audit committees are reportedly prioritising governance credentials, NFRA compliance track records, and independence standards in incoming auditor selection. The Big Six continue to dominate mandates, but mid-tier firms are gaining ground. **PRACTICAL IMPLICATION** Boards and audit committees of companies approaching mandatory rotation must commence selection processes with adequate lead time. NFRA inspection reports of shortlisted firms are publicly available and should form part of the due diligence process. | |---|---| | **05** | **SEBI BRSR Core — Reasonable Assurance Now Mandatory for Top 500 Listed Companies** ***WHY IT MATTERS*** *FY2025-26 marks the year BRSR Core assurance obligations extend to India's top 500 listed companies — a significant compliance and audit milestone.* With effect from FY2025-26, the top 500 listed companies by market capitalisation are required to obtain reasonable assurance on BRSR Core ESG disclosures, as mandated by SEBI. This represents a step-up from the top 250 obligation in FY2024-25. Reasonable assurance is a higher standard than the limited assurance required in most comparable global frameworks. Nine key ESG attributes — covering greenhouse gas emissions, water, waste, energy consumption, gender diversity, wages, inclusive development, customer fairness, and business openness — are within scope for mandatory assurance. **PRACTICAL IMPLICATION** Companies ranked between 251 and 500 by market cap that have not yet engaged an assurance provider for BRSR Core should do so immediately. Auditors and assurance providers should assess their methodology against the reasonable assurance standard required by SEBI. | |---|---| | **06** | **ICAI to Roll Out Updated Information Systems Audit Standards** ***WHY IT MATTERS*** *New IS audit standards will strengthen the framework for technology-intensive audit environments, with implications for audit planning and methodology.* ICAI is set to roll out updated Information Systems Audit Standards in June 2026, strengthening the professional framework for audits conducted in technology-intensive environments. The updated standards are expected to address IT general controls, application controls, cybersecurity risks and data integrity in the context of increasingly digital business operations. The rollout follows ICAI's broader efforts to modernise audit standards in response to evolving technology risks faced by Indian enterprises. **PRACTICAL IMPLICATION** Statutory auditors and internal auditors relying on IT systems for audit evidence should anticipate updated methodology requirements. Firms should monitor ICAI's formal announcement and schedule training for teams accordingly. | |---|---| | | **THIS MATTERS MORE THAN IT APPEARS** | |---|---| | The Rajesh Exports interim order reveals a structural vulnerability in India's financial reporting ecosystem: the audit of consolidated financial statements depends critically on the quality of information received from overseas subsidiaries, yet auditor access to foreign entities and their audit evidence remains uneven. When the majority of consolidated revenue is generated through intermediate holding structures in jurisdictions with limited disclosure requirements, group auditors must escalate their professional scepticism well beyond what a domestic consolidation demands. NFRA's inspection findings and the imminent mandatory rotation wave converge to create a moment of heightened accountability for India's audit profession and those charged with governance. | |---| | | **AI WATCH** | |---|---| | Germany's Munich Regional Court ruled on 28 May 2026 that Google is directly liable for false statements generated by its AI Overviews feature, classifying AI-generated outputs as the company's own speech rather than neutral third-party aggregation. Finance and audit functions deploying AI tools for financial analysis, audit support, or client-facing advisory should treat this ruling as a signal: deployers of AI carry direct legal responsibility for AI-generated outputs. Output review protocols, governance frameworks, and client communication practices warrant immediate review in light of this evolving liability landscape. | |---| | | **QUOTE OF THE DAY** | |---|---| | *"The strength of an institution lies not in what it conceals, but in what it willingly discloses."* — Lord Mervyn King, Former Governor, Bank of England | |---| | | **ABOUT BNPS** | |---|---| B N P S And Associates LLP is a firm of Chartered Accountants having offices at Ahmedabad, Bengaluru, Raichur, Rajkot. The firm provides professional services in the areas of audit, assurance, financial reporting, taxation, risk advisory, due diligence and related professional services. For details refer, [www.bnpsca.com](https://www.bnpsca.com). **Disclaimer:** This publication is intended solely for informational purposes and should not be construed as professional advice. Readers should seek professional guidance before acting on any information contained herein. - Tags: - [SEBI](#) - [BRSR](#) - [BOARD](#) - [AUDIT COMMITTEE](#) - [AUDTIOR](#) - [ROTATION](#) ![CA Chintan Patel](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png)About the Author #### CA Chintan Patel Ahmedabad Ind AS Advisory Statutory Audit of Listed Companies ESG,BRSR [View Profile ](https://bnpsca.com/partner/ca-chintan-patel) #### Share this on social media : [ Share ](http://www.facebook.com/sharer.php?u=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ Tweet ](https://twitter.com/intent/tweet?url=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ Post ](https://vk.com/share.php?url=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ post ](https://www.linkedin.com/shareArticle?mini=true&url=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ Share ](https://api.whatsapp.com/send?text=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ post ](https://reddit.com/submit?url=https://bnpsca.com/insight/edition-no-3-15-june-2026) [ pin ](https://pinterest.com/pin/create/button/?url=https://bnpsca.com/insight/edition-no-3-15-june-2026) ## You May Also Like Similar Articles You Might Find Interesting [ ![Edition No. 1 | 13 June 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:500:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7aa5f36c663-Images-1.jpeg) ](https://bnpsca.com/insight/edition-no-1-13-june-2026 "Blog Link")13-06-2026 #### [Edition No. 1 \| 13 June 2026](https://bnpsca.com/insight/edition-no-1-13-june-2026 "Edition No. 1 | 13 June 2026") By Chintan N. 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