Rajesh Exports Chairman Denies SEBI's Observations, Says Revenue Figures Are Accurate

4 Jun 2026 , 03:01 PM

Rajesh Exports Responds After SEBI Interim Order

A day after the Securities and Exchange Board of India (SEBI) issued an interim order highlighting discrepancies in the financial reporting of Rajesh Exports, the company has strongly defended its accounting practices and revenue disclosures.

The Bengaluru-based gold refining and jewellery exporter stated that its reported revenues are accurate and have not been overstated. According to the Company Chairman, the observations highlighted in SEBI’s interim order may have arisen from a communication gap and misunderstanding regarding the interpretation of financial figures.

“The revenues declared by the company are correct and there is no over stating of revenue,” the company said in its response.

Company Cites Possible Communication Gap

The Chairman indicated that there appears to have been confusion between the company and the regulator regarding the treatment of certain financial metrics.

According to the chairman, SEBI may have considered EBITDA-related figures while examining revenue disclosures, leading to conclusions that the reported revenue numbers did not match. The company maintained that there has been no misrepresentation of revenue and that all figures disclosed in its financial statements are correct.

Background: SEBI’s Interim Observations

In its 109-page interim order, SEBI noted that a substantial portion of Rajesh Exports’ reported consolidated revenues between FY21 and FY25 could not be adequately verified based on the records reviewed during the investigation.

The regulator observed a mismatch estimated at approximately ₹15.15 lakh crore during the period under examination. Based on these observations, SEBI imposed interim restrictions on promoter-chairman Rajesh Mehta, preventing him from dealing in the company’s securities until further directions.

Following the order, shares of Rajesh Exports hit the 5% lower circuit limit at ₹104.65 on the BSE as investors reacted to the developments.

Refining Business Operates on Thin Margins

Addressing concerns over the scale of revenues relative to profits, the company’s chairman highlighted the nature of the gold refining business. According to management, refining operations generate very large revenues but operate on relatively low profit margins. As a result, profitability can appear disproportionately small when compared with turnover, despite the underlying business activity being genuine.

The company believes this characteristic of the refining industry may have contributed to questions surrounding its reported financial figures.

Discussions With Regulator Ongoing for Over Two Years

Rajesh Exports also revealed that it has been engaged in discussions with SEBI for more than two years regarding the issues under examination.

The company stated that it has been cooperating with the regulator and is continuing to submit additional records and authenticated documents requested during the investigation.

Management expressed confidence that a review of the complete documentation would help clarify the issues identified in the interim order.

Interim Order Not a Final Conclusion

Rajesh Exports emphasized that SEBI’s order is interim in nature and does not represent a final determination on the matter.

The company and its chairman will have an opportunity to submit further evidence, provide explanations, and present their case before the regulator reaches any final conclusion.

Regulatory proceedings of this nature can often take several months or even years before a final order is issued.

What Investors Should Watch

Investors will closely monitor several developments in the coming months:

• Additional documents and clarifications submitted by Rajesh Exports to SEBI.
• Any further observations or directions issued by the regulator.
• Potential implications for the company’s financial reporting, auditors and lenders.
• The company’s explanation regarding the revenue mismatch highlighted in the interim order.
• Share price volatility as the investigation progresses.

Bottom Line

The matter has evolved into a significant dispute between SEBI’s interim observations regarding a reported revenue mismatch of approximately ₹15.15 lakh crore and Rajesh Exports’ position that its financial disclosures are accurate. The company maintains that no revenue has been overstated and attributes the issue to possible confusion in the interpretation of financial data. With the investigation still ongoing, the final outcome will depend on the evidence, documents and explanations reviewed during the regulatory process.

 

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