Notes to Accounts of Valiant Communications Ltd.

Mar 31, 2023

(a) Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Contingent Liabilities:

There are no disputes pending hence there is no contingent liability at the end of financial year.

2. Disclosures as required by Indian Accounting Standard (Ind AS) 20 Employee Benefits:

Gratuity Plan: The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service, vesting occurs upon completion of five continuous years of service in accordance with Indian law. Re-measurement gains and losses arising from the adjustments and changes in actuarial assumption are recognized in the period in which they occur, in Other Comprehensive Income. The following tables set out the disclosures in respect of the gratuity plan as required under Ind AS 20.

The assumption of future salary increase takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

3. The Company operates in two business segment viz. "Shoe uppers Manufacturing" & "Rental Services of Immovable Properties", both segments are reportable in accordance with the requirements of Ind AS -108 on "Operating Segments", prescribed by Companies (Indian Accounting Standards) Rules 2015. The Company''s business activities primarily fall within single geographical segments.

4. Disclosures as required by Indian Accounting Standard Ind AS 18: Lease:-Operating Lease Commitments:

(i) Company as lessor:-

The Company''s significant leasing arrangements are in respect of operating leases for premises. These leasing arrangements, which are non-cancellable with range from 11 months to 99 years and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals receivable are charged as rent under ''Rental Income''.

(ii) Company as lessee:-

The company evaluates if any arrangement qualifies to be a lease as per the requirements of Ind-AS 116. Identification of a lease requires significant judgment. The company uses judgment in assessing whether a contract (or part of contract) includes a lease, the lease term (including anticipated renewals), the applicable discount rate, variable lease payments whether are in- substance fixed. The judgment involves assessment of whether the asset included in the contract is a fully identifies asset based on the facts and circumstances, whether the lessee intends to opt for continuing with the use of the asset upon the expiry thereof, and whether the lease payments are fixed or variable or combinations of both.

All the lease is short term lease, hence Ind-AS has not been applied on Short Term Lease of Rs. 1002320/-

35. Earnings per Share

The calculation of Earnings per Share (EPS) as disclosed in the Statement of Profit and Loss has been made in accordance with Ind AS- 33 on "Earnings per Share".

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share: (Number of shares)

The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity, if any.

5. Income Tax:

a) Any change in the amount of deferred tax liability on account of change in the enacted tax rates and change in the quantum of depreciation allowable under the tax laws, is disclosed in the statement of profit and loss account as ''Deferred tax adjustment''.

6. Financial Risk Management

The financial assets of the company include investments, loans, trade and other receivables, and cash and bank balances that derive directly from its operations.

The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payable and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The company is mainly exposed to the following risks that arise from financial instruments:

(i) Market risk

(ii) Liquidity risk

(iii) Credit risk

The Company''s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise two types of risk: interest rate risk, foreign currency risk.

(a) Foreign currency risk

The company imports certain assets and material from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency other than company''s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by hedging appropriately. The Company uses foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The Company''s exposure to foreign currency risk was based on the following amounts as at the reporting dates:

Foreign currency sensitivity analysis

Any changes in the exchange rate of GBP and USD against INR is not expected to have significant impact on the Company''s profit due to the less exposure of these currencies. Accordingly, a 10% appreciation/depreciation of the INR as indicated below, against the GBP and USD would have increased/reduced profit by the amounts shown below. This analysis is based on the foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variable remains constant:

(b) Interest Rate Risk

The company is also exposed to interest rate risk, changes in interest rate will affect future cash flows.

(ii) Liquidity Risk

The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. Ultimate responsibility of liquidity risk management rests with board of directors.

The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash and marketable securities to meet the obligations as and when falls due.

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:

(iii) Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company. The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities.

Write off Policy

The financials assets are written off in case there is no reasonable expectation of recovering from the financial asset.

39. Capital Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company''s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s gearing ratio was as follows:

Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

There were no changes in the objectives, policies or processes for managing capital during the year ended 31 March 2022 and 31 March 2023.

40. In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment. It has been ascertained that potential loss is present and therefore, formal estimate of recoverable amount has been made.

41. The Company owes dues of Rs Nil (Previous Year Rs. Nil) towards Micro and Small Enterprises, which are outstanding for more than 45 days as at 31^st March, 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

42. There are no material events after the reporting period having significant impact on financial statement.

46. DETAILS OF BENAMI PROPERTY HELD

The company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the group companies for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

47. Previous Year figures have been regrouped/ reclassified wherever considered necessary.

48. The Standalone Financial Statement has been approved by the Board of Directors as on 30th May, 2023.

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Mar 31, 2016

1. Commitments

In view of current and expected foreseeable growth opportunities, the Board of Directors intends to retain the financial resources of the Company and therefore, finds it prudent not to propose any dividend for the year under reporting.

Note:

The Company is a 100% Export Oriented Unit with its sole manufacturing unit being located at New Delhi. The above segment revenue and results are being identified on the basis of geographical markets. The fixed assets used in the Company''s business cannot be specifically identified with any geographical segment. The management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a segregation of capital employed on segment basis, is not possible.

2. Employees benefits

The Company has a defined benefit gratuity plan with the Life Insurance Corporation of India (LIC) in the form of a qualifying insurance policy. Eligible employees are entitled for gratuity in accordance with the provisions of the Payment of Gratuity Act, 1972, including any statutory modifications or re-enactment thereof.

The following tables are the components of net benefit expenses in the profit & loss account, funded status and amounts recognized in the balance sheet:

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The Company expects to contribute Rs, 950,000/- approximately to gratuity in financial year 2016-2017. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

3. Foreign currency exposures

During the financial year under reporting and preceding financial year, the Company did not enter in any transaction of foreign currency derivatives to hedge its exposure in foreign currencies.

Details of foreign currency unheeded exposures as at balance sheet date:

Apart from given disclosures, no transaction was recorded between the Company and any related party mentioned in Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

4. Lease

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease payments as an expense on a straight line basis over the term of lease. The Company has no obligation to pay any contingent rent. The lease is renewable at the sole option of the Company.

The rental expenses of Rs, 720,000/- (previous year: Rs, 720,000/-) in respect of obligation under operating lease(s), have been recognized in the profit & loss account.

5. Other disclosures:

a) During the last five years immediately preceding the date as at the balance sheet is prepared, the Company had bought-back 297,140 equity shares pursuant to the approval of Board of Directors of the Company.

b) The unquoted non-trade investments are listed at overseas stock exchange(s) and based on the closing prices as at the reporting date, their market value is Rs, 1,272,193/- (previous year:Rs, 1,679,916/-).

c) As at end of reporting date of current year and preceding year, there is no principal amount and the interest due thereon remain unpaid to any supplier in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

d) During the financial year under reporting and in any preceding years, the Company did not enter in any transaction with any Micro, Small and Medium Enterprises and therefore no interest was paid or payable by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006, for the payments made beyond appointed day. Accordingly, there is no reportable amount of principal, interest accrued and remain unpaid at the end of reporting accounting year(s).

e) During the financial year under reporting, no interest was due or payable for the delay in making the payment (which has been paid but beyond the appointed day during the year) but without adding interest specified in accordance with the provisions of the payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

f) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, to small enterprises supplier, to whom the Company owes dues, which are outstanding beyond prescribed period as at the balance sheet date.

6. The comparative figures for the previous year have been rearranged wherever required to conform to the revised presentation of accounts.

7. Notes to financial statements form an integral part of financial statements.

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Mar 31, 2015

1. Commitments

In view of loss suffered by the Company in the financial year under reporting, the Board of Directors finds it prudent not to propose any dividend for the year under reporting.

Note:

The Company is a 100% Export Oriented Unit with its sole manufacturing unit being located at New Delhi. The above segment revenue and results are being identified on the basis of geographical markets. The fixed assets used in the Company's business cannot be specifically identified with any geographical segment. The management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a segregation of capital employed on segment basis, is not possible.

2. Employees benefits

The Company has a defined benefit gratuity plan with the Life Insurance Corporation of India (LIC) in the form of a qualifying insurance policy Eligible employees are entitled for gratuity in accordance with the provisions of the Payment of Gratuity Act, 1972, including any statutory modifications or re-enactment thereof.

The following tables are the components of net benefit expenses in the profit &- loss account, funded status and amounts recognized in the balance sheet:

3. Foreign currency exposures

During the financial year under reporting and preceding financial year, the Company did not enter in any transaction of foreign currency derivatives to hedge its exposure in foreign currencies.

Apart from given disclosures, no transaction was recorded between the Company and any related party mentioned in Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

4. Lease

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease payments as an expense on a straight line basis over the term of lease. The Company has no obligation to pay any contingent rent. The lease is renewable at the sole option of the Company.

The rental expenses of Rs. 720,000/- (previous year: Rs. 720,000/-) in respect of obligation under operating lease(s), have been recognized in the profit &- loss account.

5. Other disclosures:

a) During the last five years immediately preceding the date as at the balance sheet is prepared, the Company had bought- back 297,140 equity shares pursuant to the approval of Board of Directors of the Company.

b) The unquoted non-trade investments are listed at overseas stock exchange(s) and based on the closing prices as at the reportingdate,theirmarketvalueisn,679,916/-(previous year:Rs.6,466,219/-).

c) The export sales figures includes the export sale of products of Rs. 111,833,636/- (previous year: Rs. 109,928,827/-) and the incidental export sale of services of Nil (previous year: Rs. 2,430,000/-).

d) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. Further, all the payments were made to the suppliers on or before appointed day.

e) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

f) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, small enterprises supplier, to whom the Company owes dues, which are outstanding beyond prescribed period as at the balance sheet date.

g) As at the balance sheet date, in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. the Company has the following unpaid amount, categorized as current liability in balance sheet, to:

6. The comparative figures for the previous year have been rearranged, wherever required, to conform to the revised presentation of accounts.

7. Notes to financial statements form an integral part of financial statements.

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Mar 31, 2014

1. Contingent liabilities and commitments

(In Rs.) Particulars 31-03-2014 31-03-2013

1.1 Contingent liabilities (not provided for)

Income-tax matter in dispute 63,404,490 63,099,630

Any other contingent liability 359,598 359,598

Total 63,764,088 63,459,228

The Income Tax Department, in all its notices of demand, has challenged the validity of the approval and registration granted by Software Technology Parkof India (STPI), Ministryof Communications,tothe Company asa 100% Export Oriented Unit (EOU) under the Electronic Hardware Technology Park (EHTP) Scheme for the purpose of grant of any relief under the Income Tax Act, 1961.

On appeals filed by the Income Tax Department, the Hon''ble Delhi High Court has reversed the while orders of Income Tax Appellate Tribunal (ITAT), Delhi, and referred back the matters to the ITAT to examine alternate claims of Company.

The Company has also filed special leave petitions before the Hon''ble Supreme Court against the order of Hon''ble Delhi High Court, which is sub-judice as at reporting date.

The other contingent liability represents the demand of Central Excise Department for charges of Cost Recovery Officer. The Company has filedanappeal beforethe Tribunal,as no such officer was ever appointed by the Revenue Department.

Based on the decisions of appellate authorities given in favour of Company and legal opinion taken by the Company and discussions with the solicitors, the Company believes that there is fair chance of decisions in favor of the Company in respect of items listed above, hence, no provision is considered necessary against the same.

1.2 Commitments

In view of loss suffered by the Company in the financial year under reporting, the Board of Directors finds it prudent not to propose any dividend for the year under reporting.

Note:

a) The revenue figures include realized foreign currency exchange fluctuation gain/(loss) on export earnings.

b) The Company manufactures "Telecom Transmission Equipment", which is the only business segment of the Company. The Companyisa100% Export Oriented Unit with its sole manufacturing unit being locatedatNew Delhi. The above segment revenue and results are being identified on the basis of geographical markets. The fixed assets used in the Company''s business cannotbe specifically identified with any geographical segment. The management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a segregation of capital employed on segment basis, is not possible.

2. Employees benefits

The Company has a defined benefit gratuity plan with the Life Insurance Corporation of India (LIC) in the form of a qualifying insurance policy. Eligible employees are entitled for gratuity in accordance with the provisions of the Payment of Gratuity Act, 1972,including any statutory modification sorre-enactment there of.

The following tables are the components of net benefit expenses in the profit & loss account, funded status and amounts recognizedinthebalance sheet:

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to besettled.

The Company expects to contribute Rs. 425,000/- approximately to gratuity in financial year 2014-2015. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

3. Lease

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease paymentsas an expenseona straight line basis over the termoflease. The Company has no obligation to payany contingentrent. The lease is renewable at the sole option of the Company.

The rental expenses of Rs. 720,000/- (previous year: Rs. 720,000/-) in respect of obligation under operating lease(s), have been recognized in the profit&loss account.

4. Other disclosures:

a) During the previous year, the Company had bought back and extinguished 199,550 equity shares, having face and fully paid-up value of Rs. 10/- each. The difference between the nominal value and amount spent for buy back with other incident al expenses, total amountingtoRs.1,836,850/-,was appropriated from securities premium account.

b) In previous year, the Company had also transferred Rs. 1,995,500/- from securities premium to capital redemption reserve which represented the nominal value of shares bought back during the previous year.

c) During the last five years immediately preceding the date as at the balance sheet is prepared, the Company had bought-back1,422,140 equity shares pursuan to he approval(s) of Board of Directors of the Company.

d) The unquoted non-trade investments are listed at overseas stock exchange(s) and based on the closing prices as at the reporting date, their market valueisRs.6,466,219/-(previous year:Rs.5,027,105/-)

e) The export sales figures includes the export sale of products of Rs. 109,928,827/- (previous year: Rs. 78,577,816/-) and the incidental export sale of services of Rs.2,430,000/- (previous year: nil).

f) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. Further, all the payments were made to the suppliers on or before appointed day.

g) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act,2006.

h) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, small enterprises supplier,towhom the Company owes dues, which are outstanding beyond prescribed periodasatthe balance sheet date. i) As at the balance sheet date, in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. the Company has the following unpaid amount, categorized as current liablity in balance sheet, to :

5. The comparative figures for the previous year have been rearranged, wherever required, to conform to the revised presentation of accounts.

6. Notes to financial statements form an integral part of financial statements.

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Mar 31, 2013

1. Contingent liabilities and commitments

(In Rs.)

Particulars 31-03-2013 31-03-2012

15.1 Contingent liabilities (not provided for)

Income-tax matter in dispute 63,099,630 16,537,491

Any other contingent liability 359,598

Total 63,459,228 16,537,491

The Income Tax Department, in all its notices of demand, has challenged the validity of the approval and registration granted by Software Technology Park of India (STPI), Ministry of Communications, to the Company as a 100% Export Oriented Unit (EOU) under the Electronic Hardware Technology Park (EHTP) Scheme for the purpose of grant of any relief under the Income Tax Act, 1961.

On appeals filed by the Income Tax Department, the Hon''ble Delhi High Court has reversed the erstwhile orders of Income Tax Appellate Tribunal (ITAT), Delhi, and referred back the matters to the ITAT to examine alternate claims of Company.

The Company has also filed special leave petitions before the Hon''ble Supreme Court against the order of Hon''ble Delhi High Court, which is sub-judice as at reporting date.

The other contingent liability represents the demand of Central Excise Department for charges of Cost Recovery Officer. The Company has filed an appeal before the Commissioner (Appeals), as no such officer was ever appointed by the Revenue Department.

Based on the decisions of appellate authorities given in favour of Company and legal opinion taken by the Company and discussions with the solicitors, the Company believes that there is fair chance of decisions in favor of the Company in respect of items listed above, hence, no provision is considered necessary against the same.

1.1 Commitments

In view of loss suffered by the Company in the financial year under reporting and the prevailingglobal recession, the Board of Directors finds it prudent to not to propose any dividend for the year under reporting.

2. Exceptional item

The exceptional item represents the loss on closure of subsidiary of Company, namely "Valiant Communications FZE, UAE" duringpreviousfinancialyear.

a) The revenue figures include realized foreign currency exchange fluctuation gain/(loss) on export earnings.

b) The Company manufactures -Telecom Transmission Equipment", which is the only business segment of the Company. The Company is a 100% Export Oriented Unit with its sole manufacturing unit beinglocated at New Delhi. The above segment revenue and results are being identified on the basis of geographical markets. The Fixed assets used in the Company''s business cannot be specifically identified with any geographical segment. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a segregation of capital employed on segment basis, is not possible.

3. Employees benefits

The Company has a defined benefit gratuity plan with the Life Insurance Corporation of India (LIC) in the form of a qualifying insurance policy. Eligible employees are entitled for gratuity in accordance with the provisions of the Payment of Gratuity Act, 1972, including anystatutorymodificationsorre-enactment thereof.

The following tables are the components of net benefit expenses in the profit & loss account, funded status and amounts recognized in the balance sheet:

4. Lease

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease payments as an expense on a straight line basis over the term of lease. The Company has no obligationtopay any contingentrent.The leaseisrene wableat the soleoption of the Company

The rental expenses of Rs. 720,000/- (previous year: Rs. 720,000/-) in respect of obligation under operating lease(s), have been recognized in the profit & loss account.

5. Other disclosures:

a) The Company had no outstanding dues to any small scale industrial undertaking as at the balance sheet date. However, there is a pending dispute between the Company and a micro unit regsitered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006, for claim of Rs. 484,987/-. Whereas the Company has disputed the delivery of services before the Delhi High Court. The Delhi High Court was pleased to grant an interim injunction in favour of Company. The matter is sub-judice before the Delhi High Court.

b) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. Further, all the payments were made to the suppliers on or before appointed day.

c) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

d) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, small enterprises supplier, to whom the Company owes dues, which are outstanding beyond prescribed period as at the balance sheet date.

e) As at the balance sheet date, in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. the Company has the following unpaid amount, categorized as current liablity in balance sheet, to:

6. The comparative figures for the previous year have been rearranged, wherever required, to conform to the revised presentation of accounts.

7. Notes to financial statements form an integral part of financial statements.

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Mar 31, 2012

1.1 Terms/ rights attached to equity shares

The Company has issued only one class of shares/ securities, i.e., fully paid-up equity shares. Each equity share holder is entitled to vote one vote per share. The dividend proposed by Board of Directors are subject to the approval of equity shareholders in their ensuing annual general meeting.

In the event of liquidation of Company, the equity shareholders shall be entitled for remaining assets of the Company, after distribution of all preferential amount. The distribution shall be in proportion to the number of shares held by equity shareholders.

1.2 Buyback of equity shares

The Board of Directors at their meeting held on December 21st 2011, had announced the buyback of its fully paid-up equity shares from existing shareholders and beneficial owners in accordance with the relevant provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998, at a price not exceeding Rs. 18/- per share. The Company opted to buy back shares from open market through stock exchange route and the total offer size aggregates to Rs. 18,000,000/-, but subject to the maximum limit of 1,000,000 equity shares.

During the year under reporting, the Company had bought back and extinguished 97,590 (previous year: nil) equity shares, having face and fully paid-up value of Rs. 10/- each. The difference between the nominal value and amount spent for buy back with other incidental expenses, total amounting to Rs. 1,040,047/- (previous year: nil), is appropriated from securities premium account.

The Company has transferred Rs. 975,900/- (previous year: nil) from securities premium to capital redemption reserve which represented the nominal value of shares bought back during the year under reporting. During the last five years immediately preceding the date as at the balance sheet is prepared, the Company had bought-back 1,222,590 equity shares (including above mentioned 97,590 equity shares), pursuant to the approval(s) of Board of Directors of the Company.

3. Contingent liabilities and commitments

(In Rs.)

Particulars 31-03-2012 31-03-2011

3.1 Contingent liabilities

(not provided for) Income-tax matter

in dispute 16,537,491 14,915,533

Any other contingent liability - -

Total 16,537,491 14,915,533

The Income Tax Department, in all its notices of demand, has challenged the validity of the approval and registration granted by Software Technology Park of India (STPI), Ministry of Communications, to the Company as a 100% Export Oriented Unit (EOU) under the Electronic Hardware Technology Park (EHTP) Scheme for the purpose of grant of any relief under the Income Tax Act, 1961.

The Commissioner of Income Tax (Appeals) has decided the aforesaid matter in favor of the Company for the assessment years 2003-04,2004-05,2005-06,2006-07,2007-08 and 2008-09, whereas, the matter is sub-judice for the assessment year 2009-10. Further, on an appeal filed by the Income Tax Department, the Income Tax Appellate Tribunal (ITAT), Delhi, has also decided the aforesaid matter in favor of the Company for the assessment year 2003-04,2004-05,2005-06,2006-07 and 2007-08.

The Income Tax Department has further filed an appeal against the order of Income Tax Appellate Tribunal (ITAT), Delhi, for the assessment year 2005-06 in Delhi High Court, wherein the matter is sub-judice.

Based on the decisions of appellate authorities given in favor of Company and legal opinion taken by the Company and discussions with the solicitors, the Company believes that there is fair chance of decision in its favor in respect of the item listed above, hence, no provision is considered necessary against the same.

3.2 Commitments

In view of insufficient profits for the financial year under reporting and the prevailing global recession, the Board of Directors finds it prudent to not to propose any dividend for the year under reporting.

The Company had declared and paid to the equity shareholders a final dividend for the financial year ended March 31st 2011, Rs. 0.60/- (i.e. 6%) per equity share (not subject to tax deduction), total amounting to Rs. 4,512,360/- excluding dividend distribution tax.

4. Exceptional item

The exceptional item represents the loss on closure of subsidiary of Company, namely "Valiant Communications FZE, UAE".

The Company manufacturers "Telecom Transmission Equipment", which is the only business segment of the Company The Company is a 100% Export Oriented Unit with its sole manufacturing unit being located at New Delhi. The above segment revenue and results are being identified on the basis of geographical markets. The fixed assets used in the Company's business cannot be specifically identified with any geographical segment. The management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities, since a segregation of capital employed on segment basis is not possible.

5. Employees benefits

The Company has a defined benefit gratuity plan with the Life Insurance Corporation of India (LIC) in the form of a qualifying insurance policy. Eligible employees are entitled for gratuity in accordance with the provisions of Payment of Gratuity Act, 1972, including any statutory modifications or re-enactment thereof.

The following tables are the components of net benefit expenses in the profit & loss account, funded status and amounts recognized in the balance sheet:

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The Company expects to contribute Rs. 395,000/- to gratuity in financial year 2012-2013. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Current and previous years figures as required to be disclosed under Para 120(n) of Accounting Standard 15, are as follows:

6. Foreign currency exposures

During the financial year under reporting and preceding financial year, the Company did not enter in any transaction of foreign currency derivatives to hedge its exposure in foreign currencies.

7. Lease

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease payments as an expense on a straight line basis over the term of lease. The Company has no obligation to pay any contingent rent. The lease is renewable at the sole option of the Company.

The rental expenses of Rs. 720,000/- (previous year: Rs. 720,000/-) in respect of obligation under operating lease(s), have been recognized in the profit & loss account.

8. Other disclosures:

a) The export earnings include realized foreign currency exchange fluctuation gain of Rs. 496,677/- (previous year: loss of Rs. 80,038/-).

b) The Company had no outstanding dues to any small scale industrial undertaking as on the balance sheet date.

c) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. Further, all the payments were made to the suppliers on or before appointed day.

d) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

e) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, small enterprises supplier, to whom the Company owes dues, which are outstanding beyond prescribed period as at the balance sheet date.

f) As on the balance sheet date, in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. the Company has the following unpaid amount, categorized as current liability in balance sheet, to:

9. The comparative figures for the previous year have been rearranged, wherever required, to conform to the revised presentation of accounts.

10. Notes to financial statements form an integral part of financial statements.

---

Mar 31, 2010

1. Dividend:

For the financial year ended March 31" 2010, the Company has proposed to pay to the equity shareholders a final dividend of Rs. 1.20/- (i.e 12%) per equity share (not subject to tax deduction), total amounting to Rs. 9,024,720/- excluding dividend distribution tax.

During the financial year ended March 31" 2010, the Company had declared and paid to the equity shareholders a final dividend for the financial year ended March 31" 2009, of Rs. 1.20/- (i.e 12%) per equity share (not subject to tax deduction), total amounting to Rs. 9,024,720/- excluding dividend distribution tax.

2. Buy-back of equity shares:

The Board of Directors at their meeting held on September 8th 2008, had announced buy-back of its fully paid equity shares from existing shareholders and beneficial owners in accordance with the relevant provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998, at a price not exceeding Rs. 32/- per share. The Company opted to buy-back shares from open market through stock exchange route and the total offer size aggregates to Rs. 31,419,700/-, but subject to the maximum limit of 1,125,000 equity shares.

During the year under reporting, the Company had bought back and extinguished 173,369 (previous year: 951,631) equity shares having face and fully paid-up value of Rs. 10/- each. The difference between the nominal value and amount spent for buy-back, amounting to Rs. 2,479,704/- (previous year: Rs. 12,845,352/-) has been appropriated from the securities premium account. The Company has transferred Rs. 1,733,690/- (previous year: Rs. 9,516,310/-) from general reserve to capital redemption reserve which represented the nominal value of shares bought back during the year under reporting.

The Company has bought back the maximum limit of 1,125,000 equity shares up to May 8,h 2009 for an aggregate purchase consideration of Rs. 26,575,056/-. The Board of Directors at their meeting held on May 14th 2009, had decided to close the buy- back offer.

3. The Company had filed a suit against M/s. Seh Investments for recovery of Rs. 737,574/-, which has been decided in favour of Company by the Civil Court during the current year.

4. The export earnings have been shown after deducting realized foreign currency exchange fluctuation loss of Rs. 1,484,753/- (previousyear: gain of Rs. 2,543,733/-).

5. Basic and diluted Earning Per Share (EPS) is Rs. 1.45/- (previous year: Rs. 2.89/-) calculated by dividing the net profit (after tax) of the year by weighted average number of equity shares i.e. 7,539,368 (previous year: 8,444,061) having nominal value of Rs. 10/-each.

6. Contingent liabilities (not provided for) in respect of:

(In Rupees)

As at March 31st

Particulars 2010 2009

a) Appeal against Companys cenvat credit refund

by Central Excise Department for the financial year 2007-08 - 239,060

b) Appeal against Company by Income Tax Department in Income Tax Appellate Tribunal, for demand of the assessment year 2005-06 - 8,277,961

c) Appeal by Company against Income Tax Department in the office of Commissioner of Income Tax (Appeal) for demand of the assessment years 2003-04, 2004-05, 2006-07

and 2007-08. 41,245,827 36,108,432



The Income Tax Department, in its notices of demand, has challenged the validity of the approval and registration granted by Software Technology Park of India (STPI), Ministry of Communications, to the Company as a 100% Export Oriented Unit (EOU) under the Electronic Hardware Technology Park (EHTP) Scheme for the purpose of grant of any relief under Income TaxAct, 1961.

The Commissioner of Income Tax (Appeal) has decided the aforesaid matter in favour of the Company for the assessment year 2005-06, whereas, the matter is subjudice for the assessment years 2003-04, 2004-05, 2006-07 and 2007-08. Further, the Delhi High Court has provided an interim relief to the Company, by providing stay of demands for the assessment years 2003- 04,2004-05 and 2006-07.

Further, the Income Tax Appellate Tribunal (ITAT), Delhi, in their order delivered after the balance sheet date, has also decided the aforesaid matter in favour of the Company for the assessment year 2005-06.

Based on the decisions of Appellate authorities given in favour of Company and legal opinion taken by the Company and discussions with the solicitors, the Company believes that there is fair chance of decision in its favour in respect of the items listed above, hence, no provision is considered necessary against the same.

7. Related parties disclosure:

Name Relationship Transaction Details

Valiant Communications (UK) Ltd., UK Subsidiary Sale of investment amounting to Rs. 8,953,895/-

(previous year: nil) Valiant Communications FZE, UAE Subsidiary Equity allotment amounting to Rs. 1,915,800/-

(previousyear: nil) Valiant Infrastructure Limited, India Subsidiary Nil

VafcommTechnologies Inc., USA Associate Nil

Mr. Inder Mohan Sood Key Managerial Personnel Directors remuneration of Rs. 4,389,480/-

Mr. Davinder Mohan Sood Key Managerial Personnel (previousyear: Rs. 3,468,277/-)

Mr.AnilTandon Key Managerial Personnel

- Apart from given disclosures, no transaction was recorded between the Company and any related party mentioned in Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

8. Lease:

The Company has executed a cancelable operating lease agreement with rent payable on a monthly basis, for industrial purpose as defined under the provisions of Accounting Standard 19, issued by the Institute of Chartered Accountants of India. The Company has recognized all operating lease payments as an expense on a straight line basis over the term of lease. The Company has no obligation to pay any contingent rent. The lease is renewable at the sole option of the Company.

9. i) The Company had no outstanding dues to any small scale industrial undertaking as at the balance sheet date.

ii) During the financial year under reporting, no interest was paid by the Company in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. Further, all the payments were made to the suppliers on or before appointed day.

iii) During the financial year, there is no reportable amount of interest due and payable, accrued and remaining unpaid, payable during the reporting year and preceding years in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006. iv) According to the provisions of the Micro, Small and Medium Enterprises Development Act, 2006, there is no micro and small enterprises supplier, to whom the Company owes dues, which are outstanding beyond prescribed period as at the balance sheet date.

10. The comparative figures for the previous year have been rearranged, wherever required, to conform to the revised presentation of accounts.

11. Schedules I to XV form an integral part of balance sheet and profit and loss account.