Market regulator Securities and Exchange Board of India (SEBI) has confirmed and continued its interim directions against Rajesh Exports Ltd and its chairman, Rajesh Mehta, citing unresolved concerns over the company's financial disclosures, including a nearly 99 per cent discrepancy between its consolidated revenue and the standalone revenue of its Swiss subsidiary, Valcambi SA, over five years.
In its confirmatory order, SEBI said Rajesh Exports reported consolidated revenue of Rs 15.34 lakh crore for FY21 to FY25, while Valcambi SA's standalone revenue for the corresponding period was Rs 3,027 crore. The regulator rejected the company's explanation that differences in reporting periods between Indian and overseas entities accounted for the disparity, saying the gap remained unexplained even when the figures for the five-year period were considered together.
SEBI whole-time member Kamlesh Chandra Varshney said the discrepancy continued to raise prima facie concerns about the verifiability and reliability of the company's consolidated revenue disclosures.
"The Noticees have not, by reference to the underlying records, demonstrated at this stage how the difference in reporting periods accounts for the magnitude of the disparity observed in the revenue attributable to Valcambi and the revenue reflected in the consolidated financial statements," he said in the order.
Varshney further said the explanation provided by the noticees was not tenable and that concerns over the accuracy, completeness and verifiability of the relevant consolidated financial disclosures remained unresolved.