Shares of Rajesh Exports Ltd. are under investor focus following significant developments concerning the gold refiner and jewellery exporter. The company is currently responding to an interim order from market regulator SEBI, which alleges substantial revenue inflation, while simultaneously facing a review of its participation in a crucial government incentive scheme.
SEBI Alleges ₹15.15 Lakh Crore Revenue Inflation
The Securities and Exchange Board of India (SEBI) issued an interim order on June 3, accusing Rajesh Exports of inflating its revenue by a staggering ₹15.15 lakh crore between the financial years 2021 and 2025. This serious allegation has put the Bengaluru-based firm under intense pressure.
Chairman Rajesh Mehta, in an interview with PTI, vehemently denied the charges. He stated that SEBI's order was based on a "fundamental accounting error," asserting that the regulator mistakenly treated the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) figures as actual revenue.
Mehta further explained that Rajesh Exports had provided SEBI with a massive volume of documents, estimated at 300-400 GB, comprising millions of pages. He suggested that the regulator might have had difficulty locating the pertinent files amidst this extensive submission. To resolve the issue, the company has committed to resubmitting all requested documents within 15 days.
Potential Removal from PLI Scheme
In a separate but related development, the Ministry of Heavy Industries (MHI) is reportedly set to decide on Rajesh Exports' continued inclusion in the production-linked incentive (PLI) scheme. The company is a beneficiary under the PLI scheme for advanced chemistry cell (ACC) battery storage. This review comes in the wake of SEBI's interim order and its allegations of financial irregularities.
Company Rejects Allegations, Cites Valcambi Revenues
Rajesh Exports released a 10-point press statement on Friday, reiterating its financial integrity. The company emphasized its debt-free status and independence from external financing for its operations. It highlighted that it has only raised capital through its initial public offering in 1995, amounting to ₹10 crore, and has never engaged in equity placements with domestic institutions.
The company explicitly stated that it has "never indulged in any mis-reporting" and affirmed that all its filings and financial figures, including revenue, are "true and genuine." Rajesh Exports underscored that the SEBI order is merely an interim one, raising "suspicions" rather than presenting "conclusive adverse findings."
Addressing the core of the revenue dispute, Rajesh Exports clarified that the substantial revenues reported in its consolidated financials primarily stem from Valcambi, a globally recognized and leading gold refinery. Valcambi is involved in refining and selling gold bullion to major banks, central banks, and other large bullion entities worldwide, a fact the company stressed is "globally accepted."
Rajesh Exports also outright rejected what it termed as "totally incorrect, out of place and speculative" media and social media reports concerning scams, fraud, inflated revenues, or share placements to entities like LIC. The company expressed confidence that SEBI would appreciate its explanations, documents, and solid evidence, ultimately clearing all suspicions raised in the interim order.