The Master raises his eyebrows at the Rani's comment about the state of her TARDIS as if to say that bad, huh? Nevertheless, he knows that praise from the Rani isn't exactly something that ever gets doled out, and he also knows that 'of all the nerve' isn't actually an insult. So he only grins. And grins wider when the Doctor gets all defensive about it. "I have wanted to build one since school, matter of fact. In fact, I'm sure I mentioned it at one point. I think you were horrified at the idea."

He doesn't make any comment on the Doctor's de-companionised status because a) he isn't entirely sure what had happened with the last crew and b) the present day companion is not someone the Rani needs to look in on too closely. "Remember, the Rani dislikes everyone, Doctor; your friends should be no exception."