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.

Rane Holdings Limited, a prominent player in the automotive components sector, has announced its quarterly results, showcasing robust financial performance.

Financial Highlights

• Revenue: On a consolidated basis, Rane Holdings reported revenue from operations of Rs 1,34,082.00 lakhs.
• Profit: The company's consolidated profit reached Rs 5,749.00 lakhs.
• Earnings Per Share (EPS): Consolidated EPS stood at Rs 35.57.
• Exceptional Income: The consolidated results included exceptional income of Rs 1,546.00 lakhs, primarily from land sale and insurance claims.

Standalone Performance

• Revenue: On a standalone basis, the company reported revenue from operations of Rs 2,573.00 lakhs.
• Profit: Standalone profit was Rs 681.00 lakhs.
• Earnings Per Share (EPS): Standalone EPS reached Rs 4.77.

Strategic Developments

• Land Sale Agreement: Rane (Madras) Limited, a subsidiary of Rane Holdings, entered into an agreement to sell 3.48 acres of land in Velachery for Rs 36,118.00 lakhs. The company has already received an advance of Rs 10,000.00 lakhs for this transaction.
• Investment Approval: The Board of Directors approved an investment of Rs 5,000.00 lakhs in the wholly owned subsidiary Rane Steering Systems Private Limited through a rights issue.

Conclusion

Rane Holdings' quarterly results demonstrate significant growth in both revenue and profitability. The company's strategic moves, including the land sale agreement and investment in its subsidiary, suggest a focus on optimizing assets and strengthening its market position. These results reflect the company's resilience and adaptability in the dynamic automotive components sector.

Note: All financial figures are based on the unaudited financial results as reported by Rane Holdings Limited.