Rane Holdings Limited has disclosed a significant development concerning its wholly-owned subsidiary, Rane Steering Systems Private Limited (RSSL). Following up on a prior communication from the Deputy Excise & Taxation Commissioner (State Tax), Haryana, RSSL has now received an order levying interest and penalty. This order, dated December 25, 2025, is in response to a show cause notice issued on September 29, 2025, which was based on audit observations related to tax on the secondment of employees and input tax reconciliation for the period April 2021 to March 2022. The total expected financial implication for RSSL amounts to ₹4.91 Crores, inclusive of tax, interest, and penalty. Specifically, the demand includes a penalty of ₹0.27 Crores, interest of ₹1.99 Crores, and a tax demand of ₹2.65 Crores. The issues identified by the authority pertain to the secondment of employees being treated as an import of service liable for reverse charge tax, and disputes in input tax credit (GSTR 2A vs GSTR 3B). RSSL has stated its intention to contest this order before the appropriate authority. The company is committed to complying with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has provided the necessary disclosures in Form A.