Rane Engine Valve Ltd has disclosed that the Assistant Commissioner of Central Tax has issued a tax demand totaling ₹40.40 crore, which includes interest and penalties for various tax violations.

The company reported issues such as improper Input Tax Credit (ITC) claims and short payment of GST.

Rane plans to contest this demand before the relevant authority, indicating potential operational disruption and financial implications.

Investors should closely monitor this situation, as it introduces certain risks to financial health, but the company's proactive stance may help mitigate long-term impacts.