Rajesh Exports latest news: 'Confident that Sebi will … ' - Another clarification from Rajesh Mehta-led company | 10 points

Jewellery maker Rajesh Exports Ltd, which is facing regulatory scrutiny, on Friday issued a fresh clarification regarding what it described as "some of the incorrect perception about the interim Sebi order."

The clarification comes after the Securities and Exchange Board of India (Sebi) passed an interim order alleging that the company misrepresented a significant portion of its revenue over a five-year period and diverted company funds without the required approvals and disclosures.

In a stock exchange filing, Rajesh Exports shared a 10-point clarification on the matter, outlining its position on the observations made in the interim order, stating:

"1) Rajesh Exports is a totally debt-free company and is not dependent on any outside finance for any of its operation.

2) Rajesh Exports has never raised any money from any public offerings except for the initial public issue raising only Rs 10 crore from the public in the year 1995.

3) Rajesh Exports has never made any equity placement to any of the domestic institutions.

4) Rajesh Exports has never indulged in any misreporting, and all its filings, financial numbers including revenue is true and genuine.

5) Rajesh Exports reiterates that the Sebi order is an interim order, which has only raised suspicions on certain aspects and there are no conclusive adverse findings on any of the company matters.

6) Rajesh Exports or any of its personnel are not involved in any wrongdoing or misrepresentations.

7) The major point misinterpreted with regard to the revenues of the company is totally misplaced. The huge revenues reported in the consolidated financials of the company are primarily from Valcambi (Switzerland-based), which is engaged in refining and sale of gold bullion to major banks, central banks and other large bullion entities across the world. It is a globally accepted fact that Valcambi is the world's largest, finest and most reputed gold refinery.

8) Some of the media reports and social media postings with regard to scam, fraud, inflated revenues, placement of shares to LIC are totally incorrect, out of place and speculative. The company outright rejects all these speculative inferences.

9) Rajesh Exports is engaged in transparent and absolutely straightforward operations, which positively contribute to the country's and global economy.

10) Rajesh Exports is in the process of mitigating each one of the concerns raised in the SEBI interim order with explanation, documents and solid evidence. The company is confident that Sebi will appreciate the submissions of the company and clear all the suspicions raised in the interim order."

What Sebi has alleged

In its interim order, Sebi barred Rajesh Exports and its founder and Executive Chairman, Rajesh Mehta, from accessing the securities market until the completion of its investigation.

According to Sebi, around 97–99 per cent of Rajesh Exports' consolidated revenue originated from its overseas subsidiaries, particularly Switzerland-based Valcambi SA. However, the regulator alleged that the company did not consistently disclose the financial statements of its subsidiaries in the public domain.

Based on its findings, Sebi alleged that Rajesh Exports misrepresented approximately Rs 15.15 lakh crore, or 99.80 per cent of the revenues generated by its subsidiaries between FY21 and FY25.

Meanwhile, shares of Rajesh Exports continued to decline on Friday, sliding 5 per cent to hit a low of Rs 99.45. At this level, the stock has crashed 46.16 per cent over the last six months.