Rajesh Exports Ltd has pushed back against allegations made by market regulator Sebi, saying its reported revenues are accurate and that the regulator’s order is only an interim one.
The company’s response comes a day after Sebi against Rajesh Exports and its promoter Rajesh Mehta, raising concerns about the company’s financial reporting and questioning whether a large part of its reported revenues had adequate supporting documents.
In a on Thursday, Rajesh Exports said no final conclusion had been reached by the regulator.
The company stated that the order is interim in nature and that Sebi has not arrived at any adverse conclusion on any aspect of the case.
Rajesh Exports also maintained that there has been no overstatement of revenue and that all revenues declared by the company are correct.
The company suggested that there may be a misunderstanding between it and the regulator.
According to the filing, Rajesh Exports believes there appears to be a communication gap and confusion regarding certain aspects of the matter.
It said it is currently providing Sebi with all the required documents and information to clarify the issues raised in the order.
The company added that it is confident the regulator will arrive at the correct conclusion after reviewing the authenticated documents being submitted.
Rajesh Exports also rejected what it described as adverse media reports related to the Sebi order and said it would soon issue a separate clarification to address speculation.
Sebi’s interim order contains serious observations regarding the company’s reported financial performance.
The regulator alleged possible large-scale financial misrepresentation, lack of cooperation during the investigation process and potential inflation of revenues reported by the company.
One of the most significant observations in the order relates to the company’s consolidated revenue.
Sebi has stated that, on a preliminary basis, around 97% to 99% of Rajesh Exports’ consolidated revenue appears to be inflated and not supported by verifiable records.
The regulator is examining whether revenues amounting to several lakh crore rupees that were reported to investors had sufficient documentary backing.
The findings were described by Sebi as , highlighting the seriousness of the concerns raised in the interim order.
Meanwhile, “The company will be shortly issuing a media clarification which would clarify and settle the unnecessary speculation in the media,” said Rajesh Exports in its BSE filing.