Rajesh Exports terms SEBI observations a 'confusion', denies revenue inflation

New Delhi [India], June 5 (ANI): Rajesh Exports Limited (REL) has denied any wrongdoing and maintained that its financial reporting is accurate after the Securities and Exchange Board of India (SEBI) issued an interim ex-parte order against the company and its promoter-chairman Rajesh Mehta.
In a clarification issued following SEBI order and media reports on the matter, the company said the order passed by SEBI on June 3, 2026, is only an interim order and does not contain any conclusive adverse findings against the company.
"The Order passed by SEBI is an Interim Order in which no conclusive adverse findings of any kind have been reported by SEBI. There has been no fine, penalty or any other coercive action by SEBI against the Company," the company said.
SEBI, in its interim ex-parte order dated June 3, 2026, alleged that Bengaluru-based Rajesh Exports Limited had carried out one of the largest financial misrepresentations in Indian corporate history.
The market regulator alleged that the company fabricated or inflated revenues worth Rs 15.15 lakh crore over five financial years from FY21 to FY25.
In its order, SEBI said, "The aberrations prima facie noted in the matter, where approx. 97 per cent to 99 per cent of the revenue of the Company is inflated, are egregious and unheard of."
The regulator further stated that the balance of convenience warranted the issuance of interim directions pending investigation.
Rajesh Exports stated that it has "done no wrong" and that all reporting related to its financial statements has been correct.
The company asserted that the revenues reported in its financials are accurate and attributed SEBI's observations to a misunderstanding regarding the treatment of revenue figures of Valcambi.
According to the company, the issue has arisen because SEBI considered the EBITDA of Valcambi instead of its revenue, leading to an alleged difference of about 97 per cent in revenue calculations.
"The consolidated Revenue as stated by the Company is correct. The entire matter is a result of confusion and communication gap, which the Company is in the process of addressing with SEBI," it said.
The company added that it is confident of clarifying the matter before the regulator by providing all necessary documents and information.
"There is no reason for any listed entity to inflate revenue and maintain the earnings, this will only reduce the margins of the Company," the company said.
As part of the interim order, SEBI barred promoter Rajesh Mehta from trading in the company's securities, restricted Rajesh Exports from accessing the securities market and ordered a fresh forensic audit.
The regulator also directed scrutiny of the company's statutory auditors for alleged negligence and instructed the company to ensure accurate disclosures.
The matter remains under investigation, with the company stating that it will continue to engage with the regulator to address the concerns raised in the interim order.
Rajesh Exports shares have come under sharp selling pressure following SEBI's interim order, declining more than 10 per cent over the last two trading sessions.
The stock was locked in the lower circuit on Friday and was trading at Rs 98.73 per share, reflecting investor concerns over the regulatory action and ongoing investigation. (ANI)

(This article was generated from news agency ANI without modifications to the text.)