Rajesh Exports shares crash after SEBI flags ₹15L crore discrepancy
What's the story
Rajesh Exports Ltd's shares have hit a lower circuit at ₹103.92 (down 5%) after the Securities and Exchange Board of India (SEBI) barred the company and its promoter Rajesh Mehta from the securities market. The action follows alleged discrepancies in reported revenues amounting to ₹15.15 lakh crore over five financial years. The interim order comes after an investigation was initiated on a shareholder complaint about the company's financial disclosures.
Probe details
Investigation into financial disclosures
In October 2024, SEBI appointed an investigating authority and later engaged forensic auditor BDO to examine Rajesh Exports' records. The regulator is concerned about the source of the company's reported revenue. It has alleged that between 97% and 99% of Rajesh Exports' consolidated revenue came from overseas subsidiaries, especially its Swiss refining arm Valcambi. However, Valcambi's reported revenues were much lower than those reflected in the group's consolidated financial statements.
Audit challenges
Challenges during forensic audit
SEBI's order highlights several challenges faced during the forensic audit. The regulator said Rajesh Exports failed to provide critical customer and vendor records, while financial statements of key subsidiaries were allegedly not disclosed. The forensic review was further hindered by missing documentation, inconsistent submissions, and what SEBI described as a lack of cooperation during parts of the investigation.
Financial status
Financial position of Rajesh Exports
The regulatory action comes at a challenging time for Rajesh Exports. According to its FY26 financial statements, the company reported short-term borrowings of around ₹1,016 crore and trade payables of over ₹22,000 crore. Its cash and cash equivalents stood at some ₹2,615 crore. The company will get a chance to respond before any final decision is taken by SEBI.