- Rajesh Exports shares fell nearly 5% after SEBI barred the company and promoter.
- SEBI alleges Rs 15.15 lakh crore revenue discrepancies over five financial years.
- Most consolidated revenue came from overseas subsidiaries, mainly Swiss arm Valcambi.
Rajesh Exports Ltd's shares are under pressure for the second day 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 is trading lower by 4.97% at Rs 99.45. The stock has fallen 14.82% this week after SEBI's interim order.
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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.
Rajesh Exports Chairman Rajesh Mehta has defended the company against Securities and Exchange Board of India's interim order, exclusively telling NDTV Profit that the alleged revenue misrepresentation stems from SEBI officials confusing gross profit with revenue. He added that no conclusion has been reached agains the company.
In his first detailed interview since the order, Mehta said the headline figure of Rs 15.5 lakh crore cited by the regulator is a five-year figure. He added that there is no overstating of revenue by the company.
He also quipped why SEBI may not have checked documents sent by Rajesh Exports. "Maybe they have not checked because of the bulkiness of the documents. We have sent 400 GB of documents," he said.
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.
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