Rajesh Exports
Rajesh Exports shares crash again! Stock sinks nearly 15% after SEBI crackdown
Mumbai/IBNS: Shares of Rajesh Exports Ltd. continued their downward slide for a second consecutive session on Friday after the company and its promoter came under the scrutiny of the Securities and Exchange Board of India (SEBI), media reports said.
The stock was trading 4.97 percent lower at Rs. 99.45 during the session.
Stock under pressure
Rajesh Exports shares have come under significant selling pressure following SEBI's interim order against the company and its promoter.
The stock has declined by nearly 15 percent this week, reflecting investor concerns over the regulatory action and its potential implications for the company.
SEBI acts against Rajesh Exports
SEBI on Wednesday barred Rajesh Mehta from buying, selling or otherwise dealing in the securities of Rajesh Exports until further orders.
In its interim order, the regulator also directed the company to extend full cooperation to investigating officers and forensic auditors examining its financial records.
Allegations Against the Company
SEBI's probe has flagged several alleged irregularities in the company's financial reporting and disclosures, including:
- Manipulation of books of accounts over multiple financial years beginning FY2021.
- Inflation of revenues through transactions involving overseas subsidiaries.
- Alleged misrepresentation of 99.8 percent of reported revenues, amounting to approximately Rs. 15.2 lakh crore, attributed to subsidiaries between FY21 and FY25.
- Failure to disclose an investment of Rs. 1,035 crore in gold mining assets in Africa in the standalone financial statements of Rajesh Exports and its subsidiaries for FY2023.
Company Rejects Revenue Inflation Allegations
Responding to the regulator's findings, Rajesh Exports said there was no overstatement of revenues in its financial statements.
"There seems to be some type of communication gap and confusion between SEBI and the company," the company said, as quoted by NDTV Profit.
"The revenues declared by the company are correct and there is no over-stating of revenues," it added.
About Rajesh Exports
Rajesh Exports, one of India's largest gold exporters and jewellery manufacturers, has long been a prominent player in the bullion and precious metals industry.
The company gained global attention after acquiring Swiss gold refinery Valcambi in 2015.
However, the latest regulatory action has raised serious concerns over its corporate governance practices and financial transparency, triggering a sharp sell-off in the stock.
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