Shares of Rajesh Exports Ltd plunged another 5 per cent today, hitting the lower circuit on the stock exchanges. This marks a steep cumulative decline across consecutive trading sessions following an interim order issued by the Securities and Exchange Board of India (SEBI).
The regulatory crackdown, which alleges a massive financial misrepresentation charge of ₹15.15 lakh crore, has triggered widespread market panic and intense scrutiny over substantial equity stakes held in the company by domestic institutional giants like the Life Insurance Corporation of India (LIC).
In response to the market turmoil, Rajesh Exports on Friday issued an official clarification to the stock exchanges, strongly rejecting all speculative inferences regarding any “scam” or “fraud”. In a press release. Executive Chairman Rajesh Mehta outright rejected media reports and social media postings regarding scams, inflated revenues, or share placements to LIC, branding them as entirely incorrect and out of place.
Debt-Free status
The management maintains that Rajesh Exports is a totally debt-free company and is not dependent on external financing for any of its operations.
Furthermore, the company clarifies that it has never raised any money from public offerings except for its initial public issue, which raised a modest ₹10 crore from the public way back in the year 1995. Rajesh Exports explicitly states that it has never made any equity placement to any domestic institutions, nor has it ever indulged in any misreporting, asserting that all filings, financial numbers, and revenues are true and genuine.
Addressing the core regulatory allegations, the company reiterates that the SEBI directive is merely an interim order which has only raised suspicions on certain aspects, emphasizing that there are no conclusive adverse findings on any company matters. The filing states firmly that neither Rajesh Exports nor any of its personnel is involved in wrongdoing or misrepresentation.
The company points out that the major point being misinterpreted by observers concerns the revenues of the company, a misunderstanding it calls totally misplaced.
Revenue source
The huge revenues reported in the consolidated financials of the company are primarily derived from its subsidiary, Valcambi, which is engaged in the refining and sale of gold bullion to major banks, central banks, and other large bullion entities across the world. The company highlights that Valcambi is globally accepted as the world’s largest, finest, and most reputable gold refinery.
The company maintains that it is engaged in transparent and straightforward operations that positively contribute to both the domestic and global economies.
To resolve the situation, Rajesh Exports is currently in the process of mitigating each one of the concerns raised in the SEBI interim order by providing detailed explanations, documents, and solid evidence. The management expresses complete confidence that SEBI will appreciate these formal submissions and clear all the suspicions raised in the interim order.