Disclosure on Order received by the wholly owned subsidiary company - Rane Steering Systems Private Limited from Income Tax Authority, Chennai.
RANEHOLDIN · price
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Rane Holdings informed the exchanges that its wholly owned subsidiary, Rane Steering Systems Private Limited (RSSL), received an order dated January 10, 2026 from the Office of Deputy Commissioner of Income Tax, Transfer Pricing, Chennai, under Section 92CA(3) of the Income Tax Act, 1961. The order proposes a downward adjustment of Rs. 2.33 Crores on raw material purchase transactions for Assessment Year 2023-24 (FY 2022-23) by excluding miscellaneous expenses and taxes from the operating margin computation. The expected financial implication for the listed company is Rs. 0.59 Crore, excluding any applicable interest and penalty. RSSL is consulting with tax advisors and plans to contest the order before the appropriate authority.
The immediate tax impact is modest at around Rs. 0.59 Crore (excluding possible interest and penalty), which is small relative to the company's size. Since the subsidiary is contesting the order, the actual financial hit remains uncertain and could be lower if the appeal succeeds. Shareholders should monitor the outcome of the appeal, but the near-term effect on the stock is likely limited.