Rajesh Exports Chairman Rajesh Mehta has defended the company against Securities and Exchange Board of India's interim order, exclusive 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.
When asked about the specific finding on transactions with Affluence Shares and Stocks Pvt. Ltd., which the regulator said the entity had denied, Rajesh Mehta said the clarification was not seen by SEBI while defending the numbers.
"SEBI has not seen the clarification correctly," Mehta said. "This trade is absolutely correct. It is spread over a period of four years with Affluence. We have shared information with SEBI about the same," he said.
"We have submitted every document with respect to Affluence to SEBI. No personal account was used for trading with Affluence.
"There is no question of misrepresentation. There is no purpose of overstating our revenue. We have explained everything to SEBI, without any doubt," Mehta further clarified.
Mehta also disputed any suggestion that the company's stated revenue had changed, saying the standalone figure was already included in the consolidated numbers. "The standalone revenue is already included in the consolidated figure," he said.
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.
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