New Delhi, June 4 (IANS) Rajesh Exports Chairman and Managing Director Rajesh Mehta has rejected the findings of the Securities and Exchange Board of India (SEBI)’s interim order against the company, saying the conclusions were inaccurate and that a detailed response would be issued shortly, according to a report.
Speaking to NDTV Profit, Mehta described SEBI’s observations as preliminary and disputed the regulator’s findings.
“It is an interim order, findings are not accurate,” Mehta said.
He further added that the company was reviewing the observations and would issue a detailed statement soon.
Earlier in June, the SEBI issued a sweeping interim order against Rajesh Exports and promoter Rajesh Mehta, alleging extensive financial irregularities, lack of cooperation during the investigation and possible overstatement of revenues.
According to the market watchdog’s preliminary findings, the company may have misrepresented nearly Rs 15.15 lakh crore in revenues between FY21 and FY25, largely through overseas subsidiaries whose financial statements were not publicly disclosed.
In addition, it alleged possible diversion of funds to personal accounts linked to Mehta and estimated shareholder wealth erosion of around Rs 12,726 crore.
SEBI’s order further alleged that the company repeatedly failed to provide access to key accounting systems, financial records and supporting documents, restricting investigators and forensic auditors from independently verifying a significant portion of reported transactions.
Pending further directions, the market regulator has barred Rajesh Mehta from buying, selling or otherwise dealing in securities of Rajesh Exports and directed the company to cooperate fully with investigators.
Moreover, the regulator has ordered a fresh forensic audit and asked the company to submit pending information within 30 days.
Following this, shares of Rajesh Exports hit a lower circuit at Rs 104.65 — a decline of 4.99 per cent from the previous close — on the BSE. Rajesh Exports Chairman and Managing Director Rajesh Mehta on Thursday rejected the findings of the Securities and Exchange Board of India (SEBI)’s interim order against the company, saying the conclusions were inaccurate and that a detailed response would be issued shortly.
Speaking to NDTV Profit, Mehta described SEBI’s observations as preliminary and disputed the regulator’s findings.
“It is an interim order, findings are not accurate,” Mehta said.
He further added that the company was reviewing the observations and would issue a detailed statement soon.
Earlier, the SEBI issued a sweeping interim order against Rajesh Exports and promoter Rajesh Mehta, alleging extensive financial irregularities, lack of cooperation during the investigation and possible overstatement of revenues.
According to the market watchdog’s preliminary findings, the company may have misrepresented nearly Rs 15.15 lakh crore in revenues between FY21 and FY25, largely through overseas subsidiaries whose financial statements were not publicly disclosed.
In addition, it alleged possible diversion of funds to personal accounts linked to Mehta and estimated shareholder wealth erosion of around Rs 12,726 crore.
SEBI’s order further alleged that the company repeatedly failed to provide access to key accounting systems, financial records and supporting documents, restricting investigators and forensic auditors from independently verifying a significant portion of reported transactions.
Pending further directions, the market regulator has barred Rajesh Mehta from buying, selling or otherwise dealing in securities of Rajesh Exports and directed the company to cooperate fully with investigators.
Moreover, the regulator has ordered a fresh forensic audit and asked the company to submit pending information within 30 days.
Following this, shares of Rajesh Exports hit a lower circuit at Rs 104.65 — a decline of 4.99 per cent from the previous close — on the BSE.
–IANS
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