Bengaluru-based gold jewellery firm Rajesh Exports Ltd, which is under regulator Sebi's scanner over suspected revenue inflation of up to Rs 15.15 lakh crore for the 2020-21 to 2024-25 period, on Wednesday said it will fully cooperate with the fresh forensic audit ordered by the market watchdog and not challenge the interim order.
In an interview with PTI, company founder and chairman Rajesh Mehta denied allegations that Rajesh Exports Ltd (REL) had impeded the audit process and said the company had been forthcoming with investigators throughout. "I would never agree to the fact that certain relevant documents have not been submitted by us. We have submitted everything we were asked for. Sebi has not found something; maybe we have missed out on something. All that will be reconciled now," Mehta said.
Sebi, in an interim order, has held that gold refiner and jewellery manufacturer REL allegedly inflated its consolidated revenues by Rs 15.15 lakh crore over five years by attributing massive revenues to overseas subsidiaries, particularly Switzerland-based Valcambi SA, despite the subsidiary's audited standalone financial statements showing only a fraction of those amounts. The regulator has raised serious concerns over what it described as a prima facie misrepresentation of the company's financial position, noting that almost entire of REL's reported revenues were attributed to overseas subsidiaries whose financial statements were not made publicly available.