Rajesh Exports
'Communication gap': Rajesh Exports rejects SEBI allegations, says revenues were not overstated
Mumbai/IBNS: Rajesh Exports Ltd. has denied allegations of revenue overstatement after market regulator SEBI initiated action against the company and its promoter-chairman Rajesh Mehta over alleged financial irregularities, media reports said.
In a filing to the BSE and NSE, the company acknowledged receiving SEBI's interim order and maintained that its financial disclosures were accurate.
Company Rejects Revenue Inflation Allegations
Responding to the regulator's findings, Rajesh Exports said there was no overstatement of revenues in its financial statements.
"There seems to be some type of communication gap and confusion between SEBI and the company," the company said, as quoted by NDTV Profit.
"The revenues declared by the company are correct and there is no over stating of revenues," it added.
SEBI Bars Promoter from Trading
The Securities and Exchange Board of India (SEBI) on Wednesday barred Rajesh Mehta from buying, selling or otherwise dealing in the securities of Rajesh Exports until further orders.
In its interim order, the regulator also directed the company to extend full cooperation to investigating officers and forensic auditors examining its financial records.
Allegations Against the Company
SEBI's probe has flagged several alleged irregularities in the company's financial reporting and disclosures, including:
- Manipulation of books of accounts over multiple financial years beginning FY2021.
- Inflation of revenues through transactions involving overseas subsidiaries.
- Alleged misrepresentation of 99.8 percent of reported revenues, amounting to approximately Rs. 15.2 lakh crore, attributed to subsidiaries between FY21 and FY25.
- Failure to disclose an investment of Rs. 1,035 crore in gold mining assets in Africa in the standalone financial statements of Rajesh Exports and its subsidiaries for FY2023.
Company Under Regulatory Lens
The regulator has ordered a detailed forensic examination of the company's books to ascertain the extent of the alleged discrepancies and determine whether investors were misled through inaccurate financial disclosures.
About Rajesh Exports
Rajesh Exports, one of India's largest gold exporters and jewellery manufacturers, has long been a prominent player in the bullion and precious metals industry.
The company gained global attention after acquiring Swiss gold refinery Valcambi in 2015.
However, the latest regulatory action has raised serious concerns over its corporate governance practices and financial transparency, triggering a sharp sell-off in the stock.
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