Rajesh Exports Disputes Sebi's Calculation of Value Addition and Revenue Figures

Rajesh Exports Chairman Defends Company Against Sebi Investigation

Rajesh Exports, a leading gold trading and processing company, is at the center of a corporate storm following an interim ex-parte order passed by the Securities and Exchange Board of India (Sebi) on June 3. The company's chairman and managing director, Rajesh Mehta, has come out in defense of the company, stating that Sebi is confusing consolidated revenue numbers with value addition figures.

According to Mehta, the company's Switzerland subsidiary, Valcambi, is involved in buying gold, processing, and adding value to it, before selling it. He claims that Sebi has taken into account only the value addition figures, rather than the consolidated total revenue declared by the company. Rajesh Exports has reportedly recorded consolidated revenue of Rs 15.5 lakh crore between FY21 and FY25, with the investigation having been ongoing for two years without any findings.

Sebi, however, has alleged that Rajesh Exports misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore, representing 99.80 percent of the total consolidated revenue for the FY21 to FY25 period. The regulatory body has also restrained Mehta from buying, selling, or dealing in Rajesh Exports Limited securities until further orders and directed a fresh forensic audit.

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In response, Rajesh Exports has clarified that the revenues declared by the company are correct and there is no overstatement of revenues. The company is in the process of submitting all required and relevant documents to Sebi to clarify all aspects of the investigation.

The company's shares were locked in a 5 percent lower circuit at Rs 103.92 on the National Stock Exchange (NSE) on June 4.