Rajesh Exports Share: Market regulator SEBI has issued an interim order against Rajesh Export and company promoter Rajesh Mehta. In this order, allegations have been made of large-scale financial irregularities, non-cooperation during investigation and exaggeration of the company’s revenue. This is the reason why on Thursday (June 4) there was a 5 percent decline in the shares of Rajesh Exports on BSE and the stock was trading at Rs 103.92 till the time of writing the news.
In a 109-page interim order dated June 3, SEBI said that the findings of the investigation into the matter and the forensic examination prima facie reveal that approximately 97 to 99 per cent of the company’s reported revenues were overstated. The regulator has termed these alleged irregularities as excessive. According to the regulator, Rajesh Exports did not provide access to required accounting systems, did not provide required financial records and withheld all documents requested during the investigation.
Statement of Rajesh Export Chairman
Troubled jewelery export company Rajesh Exports said that the interim order passed by SEBI on June 3 evening has no basis. Rajesh Mehta, Chairman and Managing Director of Rajesh Exports, told Moneycontrol on June 4 morning that this is an interim order and there is nothing true in it.
When and how did this matter start?
The matter began in March 2024 with a complaint by a shareholder, raising concerns over the large trade receivables shown in the company’s accounts. After the initial review, SEBI initiated a detailed investigation covering the time between April 2020 and March 2024 and appointed BDO India Services as a forensic auditor.
SEBI alleged that REL misrepresented the Consolidated Revenue of approximately Rs 15.15 lakh crore, which is 99.80 per cent of the total Consolidated Revenue for the period FY 20-21 to FY 24-25.
Rajesh Export stopped from doing deal
Until further instructions, SEBI has barred Rajesh Mehta from buying, selling or otherwise dealing in securities of Rajesh Exports. The regulator has also directed the company to provide full cooperation to investigators and ensure true and fair disclosure of its financial statements and related party transactions.
Where is Rajesh Export from and what does this company do?
Rajesh Exports, based in Bengaluru, deals in gold refining and jewelery manufacturing and is listed on both NSE and BSE. The company sells gold products in the domestic and foreign markets and runs jewelery outlets under the Shubh Jewelers brand.
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