As per The Moneycontrol news report, the Securities and Exchange Board of India (SEBI) recently issued an interim ex-parte order against Rajesh Exports Ltd. (REL) following allegations of substantial revenue misstatements.
The company purportedly misrepresented ₹15.15 lakh crore of consolidated revenues for FY2020-21 to FY2024-25.
SEBI's investigation highlights significant discrepancies in Rajesh Exports reported financial figures.
The interim order suggests that 99.8% of the company's consolidated revenues, primarily from overseas subsidiaries, were misrepresented.
SEBI alleged that the transactions recorded were not genuine and lacked necessary verification, impacting the company's reported operational scale and financial health.
The company's connection with Valcambi SA, the main contributor to revenue, raised questions when Valcambi’s standalone financial statements depicted minimal revenues compared to group-level figures.
An examination by SEBI detailed various improper accounting methods used by Rajesh Exports.
Gross gold transaction values were recognised instead of refining or processing income, leading to potential inflation of revenues.
This scenario was compounded by missing records, customer invoices, and accounting justifications.
SEBI identified routing of corporate funds through personal accounts of promoters without proper disclosures or approvals, pointing to a systemic failure in corporate governance.
These practices concealed material information, violating regulatory requirements.
The regulator criticised REL for its failure to cooperate with the investigation, citing inconsistent submissions and non-provision of consolidated data.
Misrepresented financial disclosures misled investors, contravening SEBI's disclosure mandates.
SEBI has restricted Rajesh Mehta from trading REL securities and mandated a fresh forensic audit.
Additionally, the matter has been forwarded to the National Financial Reporting Authority for potential actions against REL's statutory auditors.
As of June 04, 2026, at 9:26 AM, Rajesh Exports share price on NSE is trading at ₹103.92, down by 4.99% from the previous closing price.
SEBI's findings indicate a pattern of financial misrepresentation by Rajesh Exports, highlighting the need for strict compliance with accounting and disclosure regulations. This action underscores the importance of transparency and accuracy in corporate financial reporting.
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Published on: Jun 4, 2026, 9:47 AM IST
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