Rajesh Exports Ltd's shares are under pressure after Securities and Exchange Board of India (SEBI) has barred the company and its promoter Rajesh Mehta from the securities market. This is alleged discrepancies in reported revenues amounting to Rs 15.15 lakh crore over five financial years, were reported yesterday.
Shares of Rajesh Exports hit lower circuit at open.
The interim order follows an investigation triggered by a shareholder complaint regarding the company's financial disclosures. SEBI appointed an investigating authority in October 2024 and later engaged forensic auditor BDO to examine the company's records.
At the heart of the regulator's concerns is the source of Rajesh Exports' reported revenue. According to SEBI, between 97% and 99% of the company's consolidated revenue was attributed to overseas subsidiaries, particularly its Swiss refining arm, Valcambi.
However, the regulator said revenues reported by Valcambi were significantly lower than the sales figures reflected in the group's consolidated financial statements. The resulting mismatch, according to SEBI, amounts to Rs 15.15 lakh crore across FY21 to FY25. The market regulator also said it was unable to independently verify a claimed investment of ₹1,035 crore in African gold-mining assets.
Missing Records and Ongoing Investigation
SEBI's order highlights several obstacles encountered during the forensic audit. According to the regulator, Rajesh Exports failed to provide critical customer and vendor records, while financial statements of key subsidiaries were allegedly not disclosed. The forensic review was further hampered by missing documentation, inconsistent submissions and what SEBI described as a lack of cooperation during parts of the investigation.
Rajesh Exports will have an opportunity to respond before any final determination is made. A final order could potentially lead to monetary penalties, disgorgement of gains and longer market-access restrictions.
The regulatory action comes at a difficult time for the company. According to its FY26 financial statements, Rajesh Exports reported short-term borrowings of about Rs 1,016 crore and trade payables exceeding Rs 22,000 crore, while cash and cash equivalents stood at around Rs 2,615 crore.
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