Rane Holdings Limited has disclosed receiving a significant tax order affecting its wholly owned subsidiary, with total financial implications of ₹4.91 crores. The regulatory communication, filed under SEBI LODR Regulation 30, reveals ongoing tax compliance challenges faced by the company's subsidiary operations.

Tax Order Details

Rane Steering Systems Private Limited (RSSL), the wholly owned subsidiary of Rane Holdings Limited, received an order under Section 73 of the CGST Act, 2017 from the Deputy Excise and Taxation Commissioner (State Tax), Haryana on December 25, 2025. The order stems from a show cause notice dated September 29, 2025, which was issued based on audit observations.

Financial Breakdown

The total demand of ₹4.91 crores comprises multiple components reflecting the comprehensive nature of the tax assessment. The breakdown demonstrates the significant financial impact across different categories of tax obligations.

Key Issues Identified

The tax authorities identified two primary areas of non-compliance during their audit examination:

• Employee Secondment Issues: Secondment of employees was treated as import of service liable for reverse charge tax, indicating potential misclassification of employment arrangements
• Input Tax Credit Disputes: Discrepancies between GSTR2A and GSTR3B returns, highlighting reconciliation challenges in the company's tax compliance processes

Company Response Strategy

RSSL has indicated its intention to contest the order before the appropriate authority, suggesting the company believes the tax demands are not justified. This approach reflects the company's confidence in its tax positions and willingness to pursue legal remedies to challenge the assessment.

The disclosure follows an earlier communication referenced as letter number RHL/SE/045/2025-26 dated September 30, 2025, indicating this matter has been under regulatory scrutiny for several months. The company has maintained transparency by providing comprehensive details as required under SEBI regulations for material developments affecting subsidiary operations.

Rane Holdings Limited has received a credit rating reaffirmation from ICRA Limited for its existing bank loan facilities totaling ₹100.00 crores. The rating agency communicated its decision on December 18, 2025, maintaining stable outlook across all facility categories.

Credit Rating Details

ICRA Limited has reaffirmed its ratings across multiple facility types for Rane Holdings. The comprehensive rating covers the company's diverse banking arrangements with maintained stability indicators.

Rating Breakdown by Categories

The reaffirmation encompasses different components of the company's banking facilities. For ₹80.00 crores in bank facilities covering term loans and cash credit, ICRA maintained the long-term rating of ICRA AA- with stable outlook. The remaining ₹20.00 crores allocated to unallocated limits received both long-term rating of ICRA AA- with stable outlook and short-term rating of ICRA A1+.

Regulatory Compliance and Disclosure

The company disclosed this information in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating letter issued by ICRA dated December 18, 2025, was received by the company and is also available on ICRA's website. This disclosure fulfills the mandatory requirements under relevant provisions of SEBI LODR for listed companies.

Rating Surveillance and Review Process

The reaffirmed ratings will become due for surveillance within one year from the date of rating communication. ICRA Limited reserves the right to review and revise the ratings at any time based on new information availability or other circumstances that could impact the rating assessment. The rating agency has specified that any changes in terms, conditions, or size of the rated instruments would require a rating review.

Key Rating Considerations

The ratings are specific to the current terms and conditions of the instruments as indicated to ICRA. The rating agency emphasized that these ratings should be understood solely as opinions and should not be treated as recommendations to buy, sell, or hold any rated instruments. The company is required to inform ICRA immediately about any defaults, delays in repayment, or significant developments that could impact debt servicing capability.