Rajesh Exports Limited dismissed revenue inflation allegations by the capital markets regulator SEBI on Thursday, saying that the order is interim and the revenue declared by the company are correct.
"The revenues declared by the company are correct and there is no over stating of revenues," it said in a statement.
It further noted that the SEBI order is interim and there has been no any adverse conclusion on any aspect arrived by the reguator. "There seems to be some type of communication gap and confusion between SEBI and the company. The company is in the process of clarifying all aspects to SEBI by submitting all the required and relevant documents," it added.
Rajesh Exports share price: Shares of Rajesh Exports hit a 5% lower circuit of Rs 104.65 on the BSE on Thursday.
The capital markets regulator passed an interim order against Rajesh Exports and its promoter Rajesh Mehta on Wednesday, alleging large-scale financial misrepresentation, non-cooperation with investigators and possible inflation of the company's reported revenues.
SEBI issued a 109-page interim order based on its investigation and forensic review which uncovered prima facie evidence suggesting that about 97-99% of the company's revenue may have been inflated, describing the findings as "egregious and unheard of."
The market regulatory, under the interim order, has restrained promoter Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders. It has also directed the firm to cooperate fully with investigators and make true and fair disclosures in its financial statements and related-party transactions.
The matter stems from a shareholder complaint filed in March 2024, flagging concerns over substantial trade receivables reflected in the company's accounts. SEBI launched a probe in response to the complaint and appointed BDO India Services as the forensic auditor.
