Rane (Madras) Limited has received a rectification order from the Income Tax Department that significantly increases its tax liability for Assessment Year 2021-22. The automotive component manufacturer disclosed this development through a regulatory filing under SEBI LODR Regulation 30 on April 08, 2026.

Tax Demand Details

The rectification order was issued by the Centralised Processing Centre, Income Tax Department, Bangalore, and received by the company on April 07, 2026. This order levies additional interest on non-payment of Tax Deducted at Source (TDS) related to the company's share buyback transactions.

Background and Context

The Income Tax Department had initially passed an order on December 26, 2022, under Section 143(3) of the Income Tax Act, 1961, levying a tax demand of Rs 3.45 crore. This original demand is currently under appeal. The recent rectification order under Section 154 of the Act adds Rs 1.63 crore as interest on the alleged non-payment of TDS on share buyback transactions.

Company's Response

Rane (Madras) Limited has indicated its intention to contest the rectification order before the appropriate authority within prescribed timelines. The company has highlighted that:

• It has already paid Rs 2.58 crore towards TDS on the share buyback
• The department has not considered this payment in its calculations
• The company will challenge the order through proper legal channels

Financial Impact

The aggregate tax demand now stands at Rs 5.08 crore, comprising the existing demand of Rs 3.45 crore and the enhanced interest component of Rs 1.63 crore. This represents a significant financial implication for the company, though the actual impact will depend on the outcome of the appeals process.

Regulatory Compliance

The disclosure was made in compliance with SEBI LODR Regulation 30, specifically Part A Para A.20 Schedule III, which requires listed companies to inform exchanges about communications from regulatory authorities. The company has provided comprehensive details as per the SEBI Master Circular dated January 30, 2026, ensuring full transparency with stakeholders regarding this development.

Rane Madras Limited has submitted its quarterly compliance certificate under SEBI regulations for the quarter ended March 31, 2026. The filing demonstrates the company's adherence to regulatory requirements for securities dematerialization processes.

Regulatory Compliance Certificate

The company filed its certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, on April 04, 2026. This quarterly submission is mandatory for all listed companies to ensure transparency in their dematerialization activities.

Key Confirmations

The certificate provides several important confirmations regarding the company's dematerialization processes:

• All securities comprised in the certificates have been listed on stock exchanges where the company's earlier issued securities were listed
• Security certificates have been mutilated and cancelled after due verification
• Depository names have been substituted in company records as registered owners within stipulated time limits

Registrar Verification

Integrated Registry Management Services Private Limited, serving as the company's Registrar and Share Transfer Agent, provided independent confirmation of the dematerialization activities. The registrar confirmed that all securities received from Depository Participants during the quarter were properly processed and verified.

Stock Exchange Notifications

The certificate was simultaneously submitted to both major stock exchanges where Rane (Madras) Limited shares are listed. The company maintains its listing presence on BSE Limited and National Stock Exchange of India Limited, ensuring comprehensive regulatory compliance across all trading platforms.