Rane (Madras) Limited has announced the receipt of a Show Cause Notice from the Principal Commissioner of Income Tax, Chennai. The notice pertains to the disallowance of certain expenditures, specifically ₹7.61 crore related to the treatment of trademark fee expenditure and actuarial gain/loss on Defined Benefit Plan of Gratuity.

The company received this communication on January 9, 2026, and it is applicable for Assessment Year 2020-21 (Financial Year 2019-20). The expected financial implications for the company are estimated at ₹2.66 crore, excluding any applicable interest and penalty.

In response to the notice, Rane (Madras) Limited, in consultation with its consultants and tax advisors, will be filing a suitable reply before the appropriate authority within the prescribed timelines. The company has declared that the information provided in Form A, in compliance with Regulation 30(13) of SEBI LODR, is true, correct, and complete to the best of their knowledge.