SEBI orders probe into Rajesh Exports over financial misrepresentation

This is an interim order by SEBI regarding Rajesh Exports Limited (REL) and Rajesh Mehta, based on prima facie findings of financial misrepresentation, non-disclosure of material information, and non-cooperation with a forensic audit.

Rajesh Exports Limited (REL), Rajesh Mehta

• SEBI found prima facie evidence of non-cooperation by the Noticees, including withholding ERP access and journal dumps.
• SEBI noted that REL failed to upload financial statements of its subsidiaries and step-down subsidiaries on its website as required by law.
• SEBI observed that REL provided complete documentation for only 2.03% of a sampled INR 7,021.36 crores in transaction testing.
• SEBI identified misrepresentation of financial statements on both consolidated and standalone bases.
• SEBI noted discrepancies regarding claims of investment in gold mines in Africa and incorrect adjustment of trade receivables against payables.
• SEBI found prima facie evidence of misutilization of funds by REL.
• The order is interim, issued under Sections 11(1), 11(4), and 11B of the SEBI Act, 1992.

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