National Post (Canada)
중도 성향
기타
Airline profits to be halved this year, even with more passengers: forecast
'If you extract the impact of the Middle East, we're looking at growth of 3.5 percent'
"PROFITS" · 총 112건
필터 보기현재 지수
50.2
0 = 부정 우세
50 = 중립
100 = 긍정 우세
최근 7일 기준 73,626건을 분석한 결과, 뉴스 심리지수는 50.2(균형)입니다. 긍정 3,592건(4.9%)·중립 68,313건(92.8%)·부정 1,721건(2.3%)이며, 중립 비중이 뚜렷하게 높습니다. 성향 지수는 종합 15.0(중도 균형)입니다.
'If you extract the impact of the Middle East, we're looking at growth of 3.5 percent'
Leurs profits seront divisés par deux en 2026 à cause de la flambée du prix du kérosène.
By Dickson Omobola International Air Transport Association, IATA, has forecast that airline profitability will halve in 2026 compared to 2025, fingering war-related disruptions in the Middle East and rising fuel costs as major factors. IATA, in its latest financial outlook for the global airline industry, said profits are expected to decline from $45 billion in […] The post Middle East war, fuel crisis to halve airline profits in 2026 – IATA appeared first on Vanguard News.
Only seven companies cited oil prices as a reason for cutting or not updating their profit outlooks for the year.
Russia is stepping up its attacks on gas infrastructure in an attempt to disrupt preparations for winter. Part of Ukraine's domestic production capacity has been lost, imports have almost come to a standstill, and Naftogaz, Ukraine's largest national oil and gas company, is being forced to look for billions of dollars to purchase fuel amid falling profits and rapidly growing debt. Time for preparation is running short. The situation is being further complicated by the war in the Middle East, which has driven gas prices up once again.
Soaring jet fuel prices driven by conflict in the Middle East are likely to push more airlines into bankruptcy and spur more sector consolidation this year and next, the head of the global airline body said on Saturday. Global airlines are grappling with higher fuel costs driven by the U.S. and Israel's war with Iran, which has choked jet fuel supplies and disrupted key air corridors, forcing costly detours.Also read: Airbus delays XLR deliveries to IndiGo as war hits suppliers Budget carriers have been among the hardest hit, lacking higher margin revenue streams such as premium cabins, high-paying travelers and credit card loyalty programs. The strain is already showing: U.S. budget airline Spirit Airlines collapsed last month, and it will not be the last, said Willie Walsh, director general of the International Air Transport Association, the industry's main trade body. "Unfortunately I think there will be some carriers that will find this high fuel price very difficult to cope with," Walsh told Reuters at IATA's annual summit in Rio de Janeiro, adding he expects some airlines to go out of business and others to be acquired by larger carriers. Even so, the pressure does not spell the end of the low-cost airline model, which continues to thrive outside the United States, where the big three carriers, United Airlines, Delta Air Lines and American Airlines, are squeezing out budget competitors, Walsh said. "I don't see that the low-cost model is broken, in fact, quite the opposite," he said, highlighting Ryanair's strong performance in Europe as an example. There is one blockbuster deal Walsh does not see happening: United Airlines CEO Scott Kirby's audacious proposal to buy arch rival American Airlines and create a U.S. aviation behemoth. The idea, which surfaced earlier this year, failed to get done despite Kirby raising it with President Donald Trump. "I don't think that's going to happen. I think the regulatory hurdles would be very significant. I don't know whether that was a genuine effort to pursue consolidation or Scott just trying to stir up some media," Walsh said. MIDDLE EAST AIRLINE WOES The Iran conflict has upended traffic flows through Middle Eastern hubs such as Dubai, Doha and Abu Dhabi, creating acute challenges for Gulf carriers including Emirates, Qatar Airways and Etihad. Walsh said he didn't think the conflict would do permanent damage to the Gulf as an aviation hub given its strategic geographic importance and the value of the popular Gulf carriers, which account for 14% of global capacity. "That capacity cannot be replaced by airlines from other regions around the world," Walsh said. "Once things settle down, I would expect the Gulf carriers to regain their important position in the market." Adding to the strain is the slow pace of aircraft deliveries from Boeing and Airbus, along with engine delays from GE Aerospace and Pratt & Whitney, a unit of RTX, limiting airlines' ability to expand fleets and improve efficiency.Also read: Airline chiefs grapple with fuel shock, fare test at Rio summit Walsh said the industry is increasingly frustrated by the delays, particularly as engine makers post strong profits while airlines struggle. He estimates supply chain disruption cost airlines about $11 billion last year. "We're disappointed that they're not moving faster. We're disappointed that they're not sharing the pain that the airline industry is sharing," he said. Aircraft and engine makers have said that much of the delays are out of their control, stemming from post-pandemic supply chain disruptions and political trade disputes. As airlines come under financial strain and climate policies lose momentum in the U.S. under Donald Trump, industry leaders have grown more cautious about meeting a 2050 net zero emissions target. Walsh said IATA is not ready to abandon the goal. "I certainly believe it's more challenging to achieve net zero in 2050 because we've not made the progress that we had expected to see on the development of sustainable fuels," he said.
Workers at SoFi Stadium in Los Angeles have overwhelmingly voted to authorise a potential strike during the World Cup, just days before football’s global showpiece begins. The Unite Here Local 11 union, which represents about 2,000 stadium food and beverage workers, is demanding better pay along with assurances that federal immigration agents will not be allowed to enter the venue. A whopping 96 per cent of voters approved the strike call, meaning they have the green light to walk off the job at any time, with the World Cup due to open on Thursday. “Contract negotiations with stadium food service operator Legends Global and FIFA have not had significant progress on key economic and workplace safety issues,” the union said in a statement. New talks are scheduled for Monday, ahead of the first World Cup match on US soil on June 12 at SoFi. Cooks, dishwashers, bartenders, and others are represented by Unite Here. SoFi Stadium — the world’s most expensive sports venue, which opened in 2020 at a cost exceeding $5 billion — will host eight World Cup matches. “If we’re forced to strike, those $100,000 FIFA suites will have nothing but bottled water and Doritos,” said union co-president Kurt Petersen. The union has demanded that workers be allowed to walk out if Immigration and Customs Enforcement (ICE) personnel come to SoFi during World Cup matches and create “a reasonable fear for their safety.” ICE has faced sharp criticism from human rights organizations for their sometimes brutal raids in various US cities, including Los Angeles. Stadium workers have also expressed concerns about being forced to share their personal information with FIFA, football’s world governing body, to get World Cup accreditation — amid fears that data will be shared with ICE. “The FIFA World Cup will generate enormous profits, but we are still fighting for basic respect and security,” stadium bartender Cesar Zamora said in a statement provided by the union. “We deserve better, and if that means going on strike, I’m ready. “
For nearly a decade, India's carmakers chased the sport utility vehicle (SUV) dream.Higher margins, aspirational buyers and a growing appetite for larger vehicles pushed manufacturers to flood showrooms with sport utility vehicles and compact SUVs, steadily relegating hatchbacks — once the backbone of India's passenger vehicle market — to the sidelines.Also Read: Tata Motors PV launches next-gen Tiago from Rs 4.69 lakh, Tiago.ev from Rs 6.99 lakh with lifetime battery warrantyThe strategy worked. Utility vehicles now account for well over half of all passenger vehicle sales in India and contributed nearly two-thirds of the 4.3 million vehicles sold in FY25.But as economic pressures mount, vehicle prices climb and first-time buyers struggle to enter the market, India's biggest automakers are beginning to acknowledge a reality they may have overlooked: the country's next wave of growth could come from the very segment they left behind.From Maruti Suzuki's renewed commitment to entry-level cars to Tata Motors' ambitious reinvention of the Tiago, hatchbacks are once again finding themselves at the centre of boardroom conversations.Also Read: Small cars strike back: Maruti Suzuki bets on mass mobility while costs squeeze fourth quarter profitsAnd this time, carmakers are betting that small cars no longer have to feel small.The forgotten customerThe shift is being driven by a growing recognition that India's passenger vehicle market cannot rely indefinitely on premiumisation.While SUVs have transformed the industry's revenue mix, they have also pushed average vehicle prices steadily higher, making car ownership increasingly difficult for millions of households.Maruti Suzuki Chairman R. C. Bhargava recently signalled the company's intent to rebalance its portfolio."We are planning to develop both small cars and SUVs. The small car market is growing. India is a country where small cars have a long-term future," Bhargava said.The comments mark a notable shift in tone from an industry that spent years focusing on larger and more expensive vehicles.For Maruti, which built its dominance on models such as the Alto, WagonR and Swift, the renewed emphasis reflects confidence that affordability will remain central to India's mobility story."A large part of the population… need small cars" for basic mobility, Bhargava said.Industry analysts say the opportunity remains substantial."In the small cars segment, there is a much bigger conversion pool that carmakers can navigate. Hence, there is this renewed push towards small cars and that segment," said Hemal Thakkar, Senior Director, Crisil Intelligence."India is a price sensitive market and hence, small cars will stay and customers are looking for upgrades within vehicles. If carmakers can provide small cars with new features and upgrades, then there will be more customers for the small car space," he added.Making hatchbacks aspirational againIf Maruti is signalling a strategic return to small cars, Tata Motors is attempting something more ambitious — making hatchbacks desirable again.The company this week unveiled the next-generation Tiago and Tiago.ev, positioning them as technology-rich products aimed at reviving a segment many in the industry had effectively written off."Hatchbacks remain the gateway to personal mobility for millions of Indian families and yet, for far too long, this segment received scarce attention from the industry, when it genuinely deserved far more," said Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles.Calling the new Tiago "not an evolution but a full reinvention", Chandra said the vehicle brings substantially upgraded design, connected technologies and safety features that were once largely reserved for more expensive categories.The next-generation Tiago gets a 10.25-inch touchscreen infotainment system, wireless smartphone connectivity, a dual-screen dashboard, wireless charging and a segment-first 360-degree surround-view camera."The feeling of wow shouldn't be reserved for expensive cars," Chandra said."Today hatchback customers want far more than mobility, they want design, tech, safety and pride of ownership. A car they want to flaunt."The company has also positioned the Tiago.ev as an affordable electric mobility option, offering a lifetime battery warranty and fast-charging capability that can add up to 100 kilometres of range in 18 minutes."Tiago will make EV more accessible," Chandra said.Why affordability is back in focusThe renewed interest in hatchbacks comes as affordability re-emerges as a key concern across the industry.Vehicle prices have risen sharply in recent years because of stricter regulations, higher commodity costs and the addition of new safety and technology features.That has increasingly pushed first-time buyers out of the market.According to Srikumar Krishnamurthy, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Limited, hatchbacks continue to play a critical role in expanding the customer base."Hatchbacks remain a preferred segment, particularly for first-time buyers and households seeking a second vehicle, as affordability and comfort are key purchase considerations," he said."From an original equipment perspective, a presence across segments also helps improve reach, especially in Tier 2/3 cities."Krishnamurthy added that rising vehicle costs are forcing manufacturers to revisit their entry-level offerings."With input costs rising and vehicle prices expected to increase further, affordability is becoming even more important, especially in the mass-market segment. In response, OEs are looking to reposition entry-level hatchbacks and compact SUVs through new launches and refreshed variants that offer a stronger value proposition to consumers."Beyond SUVsThe industry's renewed focus on hatchbacks does not mean SUVs are going away.Far from it.Utility vehicles remain India's dominant passenger vehicle category and continue to drive growth and profitability for manufacturers.What is changing, however, is the recognition that growth cannot come solely from moving customers up the value chain.To sustain volumes, carmakers need to bring new buyers into the market.That is especially important as India adds millions of young consumers entering the workforce, many of whom are seeking their first personal vehicle but remain highly sensitive to price.Affordable electric hatchbacks could further strengthen the segment's appeal in coming years."Affordable EV hatchbacks could become an attractive proposition as charging infrastructure improves, range-anxiety concerns ease, and the financing environment becomes more supportive," Krishnamurthy said.For much of the past decade, India's hatchbacks were treated as yesterday's story while SUVs became the industry's obsession.Now, as automakers search for their next growth engine, the segment that once put millions of Indians behind the wheel is beginning to look relevant again.The future of India's auto market may still be taller, bolder and SUV-shaped. But increasingly, carmakers are recognising that the road to scale may once again begin with a hatchback.
India's onion farmers, particularly in Maharashtra's Nashik district, are facing a deepening crisis as falling auction rates and oversupply continue to push prices downward. In what many are calling the "Onion Paradox," bumper production has failed to translate into profits, leaving growers burdened with mounting debt and financial losses. As returns shrink, several farmers are reportedly shifting to less risky crops in search of stable incomes.The situation has triggered growing demands for government intervention, with farmer groups seeking measures such as better price support, improved procurement systems, export incentives, and market reforms. The crisis highlights the challenges faced by agricultural producers when supply outpaces demand, leaving farmers vulnerable despite strong harvests. n18oc_breaking-newsn18oc_IndiaNews18 Mobile App - https://onelink.to/desc-youtube
“THOSE who gorge themselves on usury behave but as he might behave whom Satan has confounded with his touch; for they say, ‘Buying and selling is but a kind of usury’ — the while God has made buying and selling lawful and usury unlawful. … If, however, [the debtor] is in straitened circumstances, [grant him] a delay until a time of ease… .” — Surah Al-Baqarah, translation by Muhammad Asad. Islamic banking started in Pakistan in 1979 and by 1985, commercial banks had stopped using the word ‘interest’ and used ‘mark-up’ instead. But with time it was apparent this kind of ‘Islamic’ banking wasn’t really Islamic and was just a name change from ‘interest’ to ‘mark-up’. Pakistan’s modern Islamic banking began in 2002 when the first new fully Islamic bank started working. Since then Islamic banking has rapidly grown and now there are many Islamic banks. Islamic banks have turned out to be more profitable and there is considerable demand among Pakistanis to conduct their banking as prescribed by Islam. Islamic banks now have Sharia boards that rule whether any banking facility is Sharia-compatible and the State Bank of Pakistan (SBP) also has a Sharia advisory committee. We have also progressed from merely banking and now the government issues sukuks (long-term bonds backed by assets), we have Islamic leasing, called Ijara, and Islamic insurance, called Takaful. We should examine how close to Quranic edicts is Islamic banking. Next year as we celebrate the silver jubilee of the Islamic banking industry, we should examine how close to Quranic edicts is Islamic banking and whether it has grown closer to Islamic ideals. A company can borrow from a secular commercial bank running finance for its working capital needs and long-term finance for its project financing needs. From the Islamic bank it will get Musharakah financing or Murabaha and Istisna financing. For an example of Istisna financing assume a company wants a loan for buying cotton. The bank will buy cotton for Rs10 million and sell it to the company for Rs11m with payment due in one year, or for Rs10.5m for payment due in six months. The bank doesn’t actually buy the cotton or sell it to the company. There is, however, paperwork to pretend this has taken place. The profit the bank makes depends entirely on the policy rate set by the SBP. When the policy rate is high, the bank’s profit is also equally high. In Musharakah financing, the profit an Islamic bank charges the company also depends on the SBP’s policy rate. Typically, if the interest rate charged by commercial banks is two per cent above the SBP’s policy rate, the profit rate required by Islamic banks is also the same. If during the tenor of the loan the policy rate is increased by the SBP, the profit rate is increased by Islamic banks by a similar amount. Just as commercial banks get their interest from the client whether the company is incurring a profit or a loss, Islamic banks also have no downside when a client loses money. Except for default or restructuring, no Islamic bank has ever made a loss because its borrower was losing money. This then seems distinct from trade-based, risk-assuming lending that Islam envisions. For instance, a priori people would think that under Islamic banking’s Istisna financing if a company borrows money for buying 1,000 bales of cotton, it should return the money for a 1,000 bales of cotton, no matter what the new price of cotton is. If the value of cotton has increased, the bank will make a profit and if it has decreased, it will lose. But it will not get a fixed interest-based ‘profit’ no matter what happens to cotton prices. Similarly, under Musharakah financing people would think that if the company is making profits, Islamic banks should also make a profit but not if it’s losing money. Otherwise, it is just like secular banks with Arabic names for loans. With the current practice of Pakistani Islamic banks, the benefits of having trade-based Islamic banking are lost and banks don’t have an incentive to seek and give loans to companies that have great ideas and products. If the profit is fixed at exactly the rate of interest, like it is in commercial banks, then we lose the barkat of Islamic banking. Up until last year, the SBP required banks to give a minimum interest to depositors. But Islamic banks objected that giving fixed profits to depositors would violate Islamic principles. However, the same Islamic banks are quite happy to charge their customers fixed profits based on the SBP’s policy rate. This dichotomy meant that customers of Islamic banks were getting less profits on their deposits than those given by commercial banks even as Islamic banks made more profits than others. Islamic banks were increasing people’s cost for being good Muslims. Even today, Islamic banks give lower profits to their depositors. This goes against the Islamic admonition of exploitation. When a borrower is late in paying loans or interest/ profit, both Islamic and commercial banks charge you penal interest (which is against the ayat I quoted above) but whereas commercial banks keep this profit, Islamic banks give up that profit as charity. One has to say that the difference between Islamic and commercial banks is more in nomenclature and less in substance. Bankers and economists know this but don’t say it in the hope that Islamic banks will eventually inch closer to true Islamic banking. However, it is unfortunate that even after decades this migration is non-existent. Perhaps it’s because ‘Islamic’ banks are more profitable and don’t want to exit a comfortable business model. Islamic bankers give the example of eating beef to justify Islamic banks. They say if you eat non-zabiha beef it is wrong but the same beef is halal if slaughtered properly. The example is powerful but not applicable as Islam has not prohibited eating beef, it has just prescribed a way of slaughtering cattle. The prohibition of interest is more like the prohibition of drinking wine. It doesn’t matter whether it is consumed out of a teacup or a wineglass; the prohibition stays. Similarly, while trade is allowed in Islam, interest is prohibited even if you give it Arabic names. We must endeavour to bring Islamic banking closer to the tenets of Islam — variable profits and risk sharing. The writer is a former finance minister. Published in Dawn, June 6th, 2026
Sberbank CEO noted that the equity forecast of 22% implied double-digit profit growth
'I'm convinced that the government and the League will be uncompromising on this'
Forecasts earnings well ahead of expectations, even as it taps credit facilities to lock in memory supply
South Korean prosecutors said Friday they have indicted all 27 individuals accused this year of committing paid revenge crimes. So-called "proxy revenge" is a novel form of crime that has spread among Koreans recently, where individuals pay others to vandalize or harass people with whom they have personal disputes. "We realize the severity of the 'proxy revenge' cases that occurred recently, and have indicted all of those held responsible while seizing the profits that they have earned (through
PAKISTAN has one of the highest diabetes prevalence rates in the world. About one in three adults is living with diabetes here — some 33-34 million people. Shouldn’t there be public information campaigns to raise awareness about preventing/ living with diabetes? Where are these programmes in Pakistan? Heart disease is the leading cause of mortality in Pakistan; it is responsible for an estimated 30-40 per cent of deaths. Pakistan’s cardiovascular disease rate is 648.6 persons per 100,000; the ischemic heart disease rate is 188 per 100,000 persons. Both are the highest in the region. Some of the leading risk factors for heart disease are diabetes, high blood pressure, obesity, tobacco usage and air pollution. Around 20pc of our adult population consumes tobacco (there is a 32pc prevalence rate among men and 6-7pc among women). Other than printed warnings on tobacco products and a ban on tobacco advertisements, one does not see a significant campaign to prohibit or even discourage tobacco consumption. Around 18-26pc of our adult population is believed to be hypertensive, with some 70pc undiagnosed. Neither do we have a public awareness programme for prevention of hypertension. We don’t even have sufficient diagnostic facilities. Most people discover they are hypertensive when health complications, like heart disease, arise. Why does our healthcare system lack diabetes prevention and management programmes? Breastfeeding initiation rates are low in Pakistan as is the exclusive six-month breastfeeding rate. Pakistan still has one of the world’s highest infant mortality rates and some 40pc of its children are malnourished. Contaminated water in the feed of infants is a major contributory factor. Sadly, despite the fact that breastfeeding initiation or knowledge about exclusive breastfeeding for six months and programmes for ensuring better support for mothers are not that costly — and far cheaper than addressing child malnourishment and high infant mortality rates — we are still without a major programme to support pregnant and lactating mothers. Why are systems and markets so incomplete in these areas? If a third of our adult population has diabetes, why does our healthcare system lack diabetes prevention and management programmes? It is true that we spend very little — as a percentage of GDP — on healthcare. But awareness, prevention and management programmes are much cheaper to run than curative programmes. Why is prioritisation in public health expenditure so warped? The neglect of large preventive or management programmes in the public sector in almost all the areas mentioned here is criminal to say the least. The private sector provides much of the healthcare in the country. It makes sense for the largely profit-driven private sector to focus on curative rather than preventive programmes. Doctors, hospitals and pharmaceuticals earn a lot more if a person develops diabetes and lives with the condition for 20 to 30 years, rather than making lifestyle changes before full-blown diabetes sets in. On the other hand, much of our private health sector is not-for-profit. Yet even they lack large awareness or prevention programmes. Some of the world’s leading cardiologists are working in the country. Many are working in Pakistan as well as in the US/UK. Given the widespread prevalence of heart disease, there’s a strong demand for cardiologists here. However, no hospital, insurance company or doctor has a good prevention programme in place. I have heard a number of doctors say that if you are a South Asian man in your mid to late 50s, it is likely you already carry some of the markers of heart disease. But if this is true, should the same doctors and hospitals not invest in programmes that raise awareness for South Asian men before they reach their mid-50s? One could argue that there is no incentive for profit-focused doctors and hospitals to invest in prevention programmes. But, what is more surprising is that there are significant gaps in the provision of services even in curative care. So, you survive a heart attack. In most countries, hospitals and doctors offer programmes for rehabilitation that get you on the road to recovery by offering support for dietary and lifestyle changes, exercise, psychological and psychiatric support if needed, and of course, support for managing heart disease. But few, if any, hospitals or doctors offer such comprehensive support in Pakistan. Instead, you get a lot of hand-waving and general advice on lifestyle and dietary changes and instructions to get in touch with each specialist separately. Even where profits could be made, the services are missing. This is quite interesting. Has the market still not developed enough? The same issues exist in other areas as well. If around a third of Pakistani adults are diabetic and large numbers are genetically predisposed to obesity, hypertension and heart disease, why are food manufacturers and restaurants in Pakistan not offering better options? Just displaying ‘no added sugar’ on a food label is not enough. Just saying the burger has ‘xx calories’ is definitely not enough. Manufacturers and restaurants should be developing tasty but healthy options for people living with diabetes, hypertension, obesity, heart disease, etc. But we do not see such developments even in the for-profit sector. It is not clear why this is so. It might be that the market has not caught on yet (try finding non-dairy milk options in mainstream shops) as such options do exist in other countries. Or is the market not thought to be discerning or large enough? Given the millions of people we are dealing with, I think that things are likely to change in the near future. But the near future might not be near enough for many. Much of Pakistan’s disease burden is preventable and manageable — right from the time a child is born (breastfeeding awareness and support) all the way to adulthood (heart disease, diabetes, etc). The for-profit healthcare sector and food industry are benefiting monetarily from curative services — although there are many services that are not being provided — and have no incentive to invest in awareness and preventive programmes. But the responsibility of large awareness and prevention programmes lies with the state. Sadly, the state is more focused on the curative rather than the preventive aspect of healthcare services. The writer is a senior research fellow at the Institute of Development and Economic Alternatives and an associate professor of economics at Lums. Published in Dawn, June 5th, 2026
The government, businesses and unions should discuss how to share "excess profits" and narrow the gap between conglomerates and smaller suppliers, Kim Young-hoon said.
Tuesday on "The Alex Marlow Show," Housing and Urban Development Secretary Scott Turner discussed the Trump administration's crackdown on non-profit funding. The post Exclusive: HUD Secretary Turner Announces Crackdown NGOs, Non-Profits Receiving Tax Dollars with Automatic Renewal appeared first on Breitbart.
Russian President Vladimir Putin desires a swift end to the Middle East conflict, refuting claims that Moscow profits from rising energy prices. He emphasized Iran's resilience and the need to consider its interests in any settlement. Putin also lauded India as a reliable partner, describing the India-Russia relationship as a "special privileged strategic partnership" and expressing confidence in expanding trade ties.
Investors book profits on tech stocks, turning defensive ahead of the weekend, wary of escalating Middle East tensions.
Mumbai: It is India's fourth biggest company by revenue, but the managing director of precious metals trader Rajesh Exports (REL) apparently doesn't know how and from where it gets the biggest chunk of the revenue, show the findings of a regulatory investigation.In its investigation report, the Securities and Exchange Board of India observed allegedly unscrupulous activities by REL's promoters, such as accounting irregularities and siphoning off of company funds into personal accounts, and also pointed out lapses by its auditors. The regulator said the company and its auditors were non-cooperative."The acts of REL constitute a deliberate device, scheme and artifice to mislead and defraud investors dealing in the shares of REL by portraying an inflated and misleading picture of its operational scale, revenue and financial health," Sebi observed in its report.The company, eponymously named after its chairman Rajesh Mehta, is accused of committing an elaborate financial fraud that includes dressing-up of revenues of ₹15.15 lakh crore over the years, personal gold trades covered up as corporate sales and phoney gold mine investments of ₹1,035 crore, according to the interim report.REL denied the charges of misdeeds. In a press release Thursday, the company said the revenues stated in its financials were correct and that the confusion arose because of a mix-up between Ebitda and revenue numbers at Swiss refiner Valcambi SA, an indirect subsidiary.Sebi has not made any adverse observation with regard to earnings, the company said, claiming that the regulator has only observed suspicion with regard to revenues which was primarily because of confusion over the Valcambi numbers.Numbers don't add upIn fiscal 2025, REL reported consolidated revenue of ₹4.23 lakh crore against a profit after tax of just ₹95 crore, translating into a net margin of barely 0.02%. The year before, on ₹2.8 lakh crore revenue, profit was ₹336 crore.Experts who have studied the Sebi report and the company's annual reports say the numbers did not add up. The business appeared to be operating at margins that were not merely thin but structurally negligible, they said."It looks like a case of pass-through accounting. There is no value creation. It was 'flow of gold' being booked as revenue," said a leading auditor on the condition of anonymity.Sebi, which began the investigations in March 2024 following a shareholder complaint about suspected accounting malpractices, said it found that about 97-99% of REL's consolidated revenues were attributed to its overseas subsidiaries, principally Valcambi. But Valcambi's own accounts, audited by KPMG SA, recorded only processing fees that were about ₹3,027 crore across five years.Valcambi refined gold on behalf of clients and never took ownership of the precious metal or recognised the value of gold as revenue in its books. Yet, Global Gold Refineries AG (GGR), the parent of Valcambi that had no independent operating business, recorded gross revenues running into hundreds of crores by including the gross value of gold that actually belonged to others, according to the Sebi report.Rajesh Exports, which owns GGR through a Singapore subsidiary, used those unaudited figures in its financial statements, significantly bumping up the company's revenue, it said.In its press release, REL said: "The core observation in the order is with regard to the misreporting of the revenues. This has emerged primarily due to confusion because Sebi has considered the Ebitda of Valcambi instead of revenue hence it has stated that there is a difference of about 97% in the revenue.""There is no reason for any listed entity to inflate revenue and maintain the earnings, this will only reduce the margins of the company, which would be adverse to the company," it said.Senior management in the darkThe senior management of REL told regulators that most of them were in the dark about the company's overseas operations and only the promoter, Rajesh Mehta, dealt with those activities."Valcambi SA does not have any gold mine on its own," managing director Suresh Gowda was quoted in the Sebi order as saying. "It refines the raw gold purchased by it from various entities, whose names I do not recollect, as these things are exclusively handled by Rajesh Mehta, chairman of REL. I have never interacted nor involved with any subsidiary/step-down subsidiary of REL, as these were exclusively taken care of by Rajesh Mehta," he told the investigators, as per the order.According to the report, REL booked ₹11,487 crore in sales between 2021-22 and 2023-24 to Affluence Shares and Stocks, a broker that made up to 66% of the company's standalone revenue for that period. But Affluence, in formal depositions to the regulator, said it had not done any business with REL.Following the transaction trail, the investigators found out that the transactions were personal gold derivative trades executed by promoter Mehta using his own brokerage account and then recorded in the company's books as corporate sales, the order said.The investigators also found that Mehta used corporate funds. As per the Sebi observations, bank records show REL transferred ₹338.90 crore directly into Mehta's personal accounts between April 2020 and September 2025.Unlike in the case of Nirav Modi or Gitanjali Gems, who are accused of bank fraud, Rajesh Exports doesn't appear to have borrowed big from banks or through sale of bonds, according to regulatory filings.The company's market cap was just over ₹3,000 crore, as per Thursday's closing share price. LIC (10.8%) and Bridge India Fund (8.46%) are its major institutional shareholders."It is striking that, even at a peak market capitalisation of ₹25,000 crore, the company did not hold any analyst calls, a basic expectation for a listed company of that scale," said Shriram Subramanian, founder and managing director of InGovern Research Services, a corporate governance advisory firm.The regulator in 2024 hired BDO India Services to investigate. But the forensic audit faced problems at almost every stage of the investigation. It was denied access to ERP systems and was not provided a complete journal dump, preventing independent verification of transactions recorded in the books, according to the regulatory report.And the company declined to share subsidiary-level records with the investigator, citing Swiss data protection laws, limiting auditors largely to reviewing financial statements prepared by the management itself rather than underlying evidence, it said.What's also come under the scanner was the conduct of statutory auditors for the last few years: CA PV Ramana Reddy, the proprietor at PV Ramana Reddy & Co, and CA PL Venkatadri, partner at BSD & Co.The company's FY24 and FY25 annual reports, filed with the stock exchanges, carry an unqualified opinion from BSD & Co, which concluded that the financial statements presented a "true and fair view" in line with Indian Accounting Standards.The company's FY24 Directors' Report noted that the statutory and secretarial auditors had made no qualifications, reservations or adverse remarks.The Sebi report said for over five months, the auditors sat on the regulator's request for missing documents and statements.Emails sent to both audit firms did not elicit any response.REL closed 5% lower at ₹103.92 Thursday on the NSE. The shares are down from their peak of ₹1,028.40 on February 6, 2023.