Excerpt from Inc42 Article, Published on Jun 19, 2025.
OnePlus Technology India is currently facing heightened regulatory scrutiny amid rising concerns over Chinese firms operating in India. In its recent financial filing with the Ministry of Corporate Affairs (MCA), OnePlus disclosed multiple compliance and operational concerns flagged by auditors—highlighting issues related to its accounting practices and delayed statutory dues.
The filing revealed that OnePlus uses accounting software hosted on servers located outside India, specifically maintained by Guangdong OPPO Mobile Telecommunications Corp in Dongguan, China. Auditors raised red flags about the software, noting that its program code appears to be written in a foreign language—presumably Chinese—which obstructed the conduct of essential audit procedures. Additionally, the lack of SOC 2 or SAE 3402 certifications made it impossible to verify a compliant audit trail, further complicating transparency. Responding to these concerns, OnePlus has initiated upgrades to its IT systems. The company mentioned that it is enabling audit trails in its new system, with independent testing and verification planned for FY 2024–25. It is also arranging to clear all outstanding employee provident fund contributions for FY 2023–24.
The statutory auditor, Shah & Jain Chartered Accountants, and the internal auditor, Grant Thornton Bharat LLP, were involved in the assessments. However, the filing does not specify which party identified the issues. Auditors also cautioned that OnePlus could potentially face action from enforcement bodies such as the Enforcement Directorate (ED) and the Income Tax Department. This adds to the mounting pressure on OnePlus, which operates under parent company OPPO, already under investigation in India for alleged financial misconduct. While OnePlus reported a robust FY24 with INR 15,217 crore in revenue and INR 230 crore in net profit, these unresolved compliance concerns may overshadow its financial performance.
As India sharpens its focus on corporate governance and cross-border data control, OnePlus remains under intense scrutiny within an increasingly stringent regulatory landscape.
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