Rajesh Exports
₹15.2 lakh crore revenue questioned! SEBI action sends Rajesh Exports shares tumbling
Mumbai/IBNS: Shares of Rajesh Exports Ltd. plunged on Thursday after market regulator SEBI initiated action against the company and its promoter-chairman Rajesh Mehta over alleged financial irregularities, media reports said.
The stock fell 5 percent to hit the lower circuit at Rs. 104.65 on the BSE.
SEBI Bars Promoter from Trading
The Securities and Exchange Board of India (SEBI) on 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 Under Regulatory Lens
The regulator has ordered a detailed forensic examination of the company's books to ascertain the extent of the alleged discrepancies and determine whether investors were misled through inaccurate financial disclosures.
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.
However, the latest regulatory action has raised serious concerns over its corporate governance practices and financial transparency, triggering a sharp sell-off in the stock.
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