Rajesh Exports Chairman and Managing Director Rajesh Mehta has said that the market regulator’s allegations against the company were inaccurate and that a detailed response was on the way.
“It is an interim order, findings (are) not accurate,” Mehta was quoted as saying by NDTV Profit.
“We are going through the findings and will share a detailed statement within an hour,” he said.
The statement comes after the Securities and Exchange Borad of India issued a notice to the company for alleged misrepresentation of revenue worth Rs 15.15 lakh crore and barred Mehta from accessing the securities markets.
Sebi alleged that the company misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore. This represents about 99.80 percent of the total consolidated revenue of the company for the period FY21 to FY25.
The markets regulator alleged that the company attributed about 97–99 percent of its consolidated revenue from its foreign subsidiaries, particularly Valcambi SA.
“Upon analysis of the ‘Revenue from Operations’ and ‘Profit After Tax’ of REL on standalone and consolidated basis, as disclosed in its financial statements, it is observed that significant component of REL’s consolidated operations are emanating from its subsidiaries/step-down subsidiaries,” the Sebi order said.
However, upon comparison, it was observed that “the standalone revenues of Valcambi SA constituted less than 0.50 percent of the consolidated revenues reported by GGR and REL, which appears fundamentally inconsistent with REL’s repeated assertion that Valcambi SA was the principal operating entity driving the group’s revenues,” the Sebi order said.
According to Sebi, Rajesh Exports recognised gross gold transaction values rather than only refining or processing income, without providing adequate supporting records, customer details, invoices, or accounting justification thereby potentially inflating revenues and misleading investors.
Rajesh Exports is a gold refiner and manufacturer of gold products. It exports its products to various countries around the world.
It also sells its products in wholesale and retail in India and through its own retail showrooms under the brand name ‘SHUBH Jewellers’.
It is a mid-cap company having Rs 3,210crore market capitalization as on June 3.
