Rajesh Exports, a prominent gold refiner and jewellery exporter, has vehemently denied allegations of revenue inflation leveled by market regulator SEBI. Chairman Rajesh Mehta stated that the interim order issued by SEBI on June 3, 2026, stems from a fundamental misunderstanding of accounting principles and the regulator's inability to locate key documents submitted by the company.
Refuting Revenue Inflation Claims
Speaking to PTI, Mehta clarified that Rajesh Exports had already provided between 300 GB and 400 GB of records to SEBI. He asserted that the confusion arose because SEBI mistakenly treated the company's EBITDA (gross profit) as revenue, leading to the inflated figure of ₹15.15 lakh crore for FY21-FY25 cited in the interim order.
"They have taken the EBITDA and termed it as revenue. EBITDA means gross profit. They have taken the gross profit and termed it as revenue. Looking at the number (₹15.15 lakh crore), they have made a huge mistake," Mehta explained.
He provided an example from the jewellery business: if gold worth ₹30,000 is sold, the gross profit might be ₹1,000, and net profit ₹500. Mehta alleged that SEBI focused on the ₹1,000 gross profit and labeled it as revenue, rather than the actual sale value. He applied similar logic to the company's bullion business, where a small margin on a large transaction could be misinterpreted.
Company Vows to Resubmit Documents
Mehta confirmed that Rajesh Exports would resubmit all requested documents within 15 days to address the regulator's concerns. He expressed confidence that a proper review would clarify the situation, stating, "I am sure they are not blind people; they are intelligent people. They will pass the order in a correct manner."
Debt-Free Status and Share Pledging
The chairman also strongly rejected allegations that company funds were routed through personal accounts or promoter-linked entities without disclosure. He affirmed that both the company and its promoters have been completely debt-free for the past four decades and have not pledged any shares globally.
Regarding the interim order's restriction barring him from dealing in the company's securities, Mehta dismissed it as inconsequential, stating he has never traded in his life.
Market Impact and Future Outlook
Following SEBI's action, Rajesh Exports' stock experienced a sharp decline. However, Mehta described this as a temporary market sentiment-driven downturn. He reiterated the company's commitment to transparency, stating they are open to a fresh forensic audit and any inspection of their books and offices. Mehta assured shareholders that the company's books are clear and clean, expressing confidence that the shares would regain their "original glory" once the clarifications are provided to SEBI.