Following the SEBI interim order, Rajesh Exports, including its top boss Rajesh Mehta, has been unequivocal in his narrative that the findings of the market regulator, including a claim of Rs 15.15 lakh crore being misrepresented, was a communication error from SEBI's end.
In an exclusive conversation with NDTV Profit, Mehta pointed to similar arguments, rejecting SEBI's findings and claiming that there is nothing wrong with the company's financials.
Now, Rajesh Exports has issued a detailed 10-point clarification to stock exchanges in response to the Securities and Exchange Board of India's interim order, rejecting allegations of revenue misrepresentation and saying the regulator's concerns stem from incorrect perceptions.
In an exchange filing on Friday, the gold jewellery maker sought to address what it called speculation in media and social media reports surrounding the interim order.
"The huge revenues reported in the consolidated financials of the company are primarily from Valcambi, which is engaged in refining and sale of gold bullion to major banks, central banks and other large bullion entities across the world," the filing said, adding that Valcambi is "the world's largest, finest and most reputed gold refinery."
The company also sought to distance itself from concerns over its capital structure.
"Rajesh Exports is a totally debt free company and is not dependent on any outside finance for any of its operations," it said.
"Rajesh Exports has never raised any money from any public offerings except for the initial public issue raising only Rs 10 crore from the public in the year 1995," the filing added.
The company also flatly denied reports of LIC shareholding being linked to any institutional placement.
"Rajesh Exports has never made any equity placement to any of the domestic institutions," it said, calling media reports on scam, fraud, inflated revenues, and placement of shares to LIC "totally incorrect, out of place and speculative."
"Rajesh Exports reiterates that the SEBI order is an interim order which has only raised suspicions on certain aspects and there are no conclusive adverse findings on any of the company matters," it said.
The company said it is in the process of submitting explanations, documents, and evidence to address each concern raised in the interim order and was confident SEBI would "clear all the suspicions."
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