India's market watchdog has issued a directive alleging that Rajesh Exports artificially boosted its revenue through various unauthenticated international sources, totaling 15.15 trillion rupees or $158.30 billion over several years.
India's market regulator issued a directive on Wednesday alleging that jewelry manufacturer Rajesh Exports artificially inflated its annual revenues by approximately $158.30 billion through dubious foreign partnerships totaling 15.15 trillion rupees over several years.
Related ↗British companies halt recruitment amid Iran conflict impact, REC research indicates.Rajesh Exports is currently under intense regulatory scrutiny by the Securities and Exchange Board of India, pending a thorough investigation into alleged discrepancies in financial reporting.
A inquiry seeking comment from Rajesh Exports and its owner went unanswered initially.
Read next ↗Tate & Lyle accepts a £2.7 billion all-cash acquisition from Ingredion.Regulatory issues have been identified in a recent investigation, specifically regarding discrepancies.
Rajesh Exports' overseas subsidiaries, led by Switzerland's Valcambi SA, accounted for 97%–99% of its consolidated revenue, yet their financial information remained undisclosed to the public.
Rajesh Exports' audited financials revealed Valcambi SA as a key subsidiary, yet it reported minimal standalone income.
Rajesh Exports has been accused of misrepresenting a staggering amount, specifically 15.15 trillion rupees, equivalent to nearly 100% of its subsidiary revenue between FY 2020-21 and 2024-25.
Rajesh Exports reported sales of 114.87 billion rupees and purchases of 114.88 billion rupees to a company called Affluence Shares and Stocks Private Limited, which has disputed these figures entirely.
Regulatory authorities claim the company's reported figures are inflated by fictitious transactions tied to owner Rajesh Mehta's private derivatives dealings.
Rajesh Exports is under investigation by SEBI for allegedly diverting 3.39 billion rupees from company funds into personal accounts of its owner, Mehta, for unauthorized transactions and inadequate disclosure.
Financial irregularities involved a staggering amount of 9.26 billion rupees unaccounted for.
The misstated financial data has resulted in a staggering loss for Rajesh Exports' shareholders, amounting to 127.26 billion rupees.
The exchange rate is set at 95.7050 rupees per dollar.
