Rane Holdings Limited disclosed that its wholly-owned subsidiary, Rane Steering Systems Private Limited, has received an order from the Deputy Commissioner (CT), Chennai (South), involving a financial implication of ₹7.46 crore. The order, received on July 20, 2026, pertains to the Financial Year 2019-20 and partly allows, dismisses, and modifies an appeal filed by the subsidiary. The demand includes a penalty of ₹0.38 crore.

The regulatory communication was issued under Section 112 of the Tamil Nadu Goods and Service Tax (TNGST) Act, 2017. According to the filing, the matters dismissed relate to tax liability payable on reverse and forward charge mechanisms on certain expenses, and availing Input Tax Credit (ITC) on trade payables. The order follows an appeal filed against a previous assessment order passed by the Assistant Commissioner (ST), Royapettah, on August 25, 2024.

Financial Implications

The total demand raised against the subsidiary amounts to ₹7.46 crore. This figure is broken down into the principal tax demand and the associated penalty. The company has stated that Rane Steering Systems Private Limited is currently consulting with its consultants and tax advisors to formulate a response.

Company Response

Rane Steering Systems Private Limited intends to file an appeal before the appropriate authority within the prescribed timelines. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The management has assured that the subsidiary will address the aberrations identified by the authority through the formal appeal process.

Rane Holdings has announced a dividend of ₹47 per equity share for the financial year ended March 31, 2026. The dividend will be paid to shareholders whose names appear in the register of members as on Thursday, August 6, 2026, with the payment scheduled for Monday, August 24, 2026. The company’s 90th Annual General Meeting (AGM) is scheduled to be held on Thursday, August 13, 2026, at 15:00 hrs IST via Video Conference (VC) and Other Audio Visual Means (OAVM).

The AGM will transact ordinary business, including the adoption of the audited financial statements for the year ended March 31, 2026, and the declaration of the dividend. Additionally, the meeting will consider the re-appointment of Mr. Harish Lakshman, who retires by rotation and is eligible for re-appointment. Mr. Lakshman has over 29 years of industrial experience and serves as the Chairman and Managing Director of Rane (Madras) Limited.

Special Business and Appointments

The special business includes the appointment of Mr. Ramesh Rajan Natarajan as an Independent Director for a term of five consecutive years effective from July 1, 2026, to June 30, 2031. Mr. Natarajan is a Fellow member of the Institute of Chartered Accountants of India and brings over 42 years of experience, having previously served as the Executive Director for Global Assurance of PwC International. The Board recommends his appointment as a special resolution.

E-voting and AGM Details

Central Depository Services (India) Limited (CDSL) has been engaged to facilitate remote e-voting and the VC/OAVM facility. The cut-off date for determining eligibility for remote e-voting and e-voting at the AGM is August 6, 2026. Remote e-voting will commence on August 10, 2026, at 09:00 hrs IST and conclude on August 12, 2026, at 17:00 hrs IST.

Shareholders who have already cast their votes via remote e-voting will not be entitled to vote at the AGM. The facility for appointing proxies will not be available as the meeting is conducted via VC/OAVM. Mr. Balu Sridhar, Practicing Company Secretary, has been appointed as the Scrutinizer for the voting process.

Key AGM Dates