Rajesh Exports, among India’s largest gold processing companies, is facing allegations of inflating its consolidated revenues by more than ₹15 trillion over five years by attributing massive revenues to overseas subsidiaries.
SEBI’s interim order dated June 3, alleged revenue inflation of Rs 15.15 lakh crore during FY21-FY25.
But Rajesh Exports said that the allegations are not true. The company said that we had given them 300-400 GB documents, running into lakhs of pages. We think they have not been able to find the correct documents. The whole confusion has happened there.
In another development, PTI reported that the Ministry of Heavy Industries (MHI) would decide on removing Rajesh Exports from the list of beneficiaries under the production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage in the coming days.
In FY25, REL reported consolidated revenue of Rs 4.23 lakh crore, while profit after tax stood at just Rs 95 crore, implying a net margin of barely 0.02%. In FY24, the company reported revenue of Rs 2.8 lakh crore and profit of Rs 336 crore.
According to experts who reviewed Sebi’s report and the company’s annual reports, the numbers appeared difficult to reconcile. They argued that the business seemed to be operating at margins that were not thin but structurally negligible.
How the investigation started?
The matter originated from a shareholder complaint received in March 2024 that raised concerns over substantial trade receivables reflected in the company’s accounts. Following a preliminary review, Sebi launched a detailed investigation covering the period from April 2020 to March 2024 and appointed BDO India Services as the forensic auditor.
According to Sebi, between 97% and 99% of REL’s consolidated revenue was attributed to overseas subsidiaries, primarily Valcambi. However, Valcambi’s own accounts, audited by KPMG SA, showed only processing-fee income amounting to approximately Rs 3,027 crore over five years.
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