Rane Holdings Limited, a prominent player in the automotive components sector, has taken a significant step to support its wholly-owned subsidiary, Rane Steering Systems Private Limited (RSSL). The company's Finance Committee has approved a short-term inter-corporate loan of up to Rs 25 crores to RSSL, demonstrating its commitment to strengthening its subsidiary's operations.

Key Details of the Loan Agreement

Strategic Implications

This financial move underscores Rane Holdings' strategy to support its subsidiary's growth and operational needs. As a wholly-owned subsidiary, RSSL's performance directly impacts Rane Holdings' consolidated financial results. The short-term nature of the loan, coupled with the rollover option, provides flexibility for both entities to manage their financial positions effectively.

Regulatory Compliance

The transaction has been conducted at arm's length, adhering to regulatory requirements for related party transactions. Rane Holdings has promptly disclosed this development to the stock exchanges, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Impact

This move by Rane Holdings demonstrates the company's proactive approach to managing its group's financial needs. It also reflects the parent company's confidence in RSSL's potential and its commitment to ensuring adequate liquidity for its operations.

As the automotive components sector continues to evolve, such strategic financial decisions could play a crucial role in maintaining competitiveness and driving growth within the Rane Group.

Rane Holdings Limited (RHL) has disclosed that its wholly-owned subsidiary, Rane Steering Systems Private Limited (RSSL), is facing a tax demand of Rs 6.74 crore following the dismissal of an appeal by the Income Tax Department's National Faceless Appeal Centre.

Appeal Dismissal and Tax Implications

The order, received on September 9, 2025, dismisses RSSL's appeal against a previous order under Section 147 of the Income Tax Act. The ruling pertains to the Assessment Year 2015-16 (Financial Year 2014-15) and disallows certain revenue expenses under Section 37 of the Income Tax Act, adding them back to the company's income.

Details of the Tax Order

The Income Tax Department's decision results in a tax demand of Rs 6.74 crore for RSSL. The order specifically targets expenses that were previously claimed under Section 37 of the Income Tax Act but have now been disallowed and added back to the taxable income.

Company's Response

In response to this development, Rane Steering Systems Private Limited plans to take further legal action. The company has stated its intention to file a statutory appeal or seek a stay order within the prescribed time limits, indicating its disagreement with the tax department's decision.

Regulatory Compliance

Rane Holdings Limited, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has promptly disclosed this information to the stock exchanges. The company has affirmed that the details provided are true, correct, and complete to the best of their knowledge and belief.

Impact on Rane Holdings

While the tax demand is specifically on Rane Steering Systems Private Limited, as a wholly-owned subsidiary, this development could potentially impact Rane Holdings Limited's consolidated financial position. However, the exact implications will depend on the outcome of the planned appeal.

Investors and stakeholders of Rane Holdings Limited are advised to monitor further updates on this matter, as the resolution of this tax issue could have financial implications for the company.