Rajesh Exports
Rs 15.2 lakh crore under scanner! SEBI chief dodges questions on Rajesh Exports crackdown
Mumbai/IBNS: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has declined to comment on the market regulator's action against Rajesh Exports, saying the matter is part of a "quasi-judicial process" and must be addressed through legal procedures, according to a report by The Economic Times.
SEBI chief avoids detailed remarks
Speaking on the issue, Pandey said the proceedings against Rajesh Exports are currently under a quasi-judicial process, making it inappropriate for him to offer further comments.
He stressed that such matters must be resolved through established legal channels.
SEBI acts against Rajesh Exports
SEBI last Wednesday barred Rajesh Mehta from buying, selling or otherwise dealing in the securities of Rajesh Exports until further orders.
In its interim order, the regulator also directed the company to extend full cooperation to investigating officers and forensic auditors examining its financial records.
Allegations Against the Company
SEBI's probe has flagged several alleged irregularities in the company's financial reporting and disclosures, including:
- Manipulation of books of accounts over multiple financial years beginning FY2021.
- Inflation of revenues through transactions involving overseas subsidiaries.
- Alleged misrepresentation of 99.8 percent of reported revenues, amounting to approximately Rs. 15.2 lakh crore, attributed to subsidiaries between FY21 and FY25.
- Failure to disclose an investment of Rs. 1,035 crore in gold mining assets in Africa in the standalone financial statements of Rajesh Exports and its subsidiaries for FY2023.
Company Rejects Revenue Inflation Allegations
Responding to the regulator's findings, Rajesh Exports said there was no overstatement of revenues in its financial statements.
"There seems to be some type of communication gap and confusion between SEBI and the company," the company said, as quoted by NDTV Profit.
"The revenues declared by the company are correct and there is no over-stating of revenues," it added.
About Rajesh Exports
Rajesh Exports, one of India's largest gold exporters and jewellery manufacturers, has long been a prominent player in the bullion and precious metals industry.
The company gained global attention after acquiring Swiss gold refinery Valcambi in 2015.
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