Notes to Accounts of Valiant Communications Ltd.

Mar 31, 2025

3.19 Accounting of provisions, contingent liabilities and
contingent assets

Provisions are recognized, when there is a present legal or
constructive obligation as a result of past events, where it is
probable that there will be outflow of resources to settle the
obligation and when a reliable estimate of the amount of the
obligation can be made. Where a provision is measured
using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those
cash flows. Where the effect is material, the provision is
discounted to net present value using an appropriate
current market-based pre-tax discount rate and the
unwinding of the discount is included in finance costs.

Contingent liabilities are recognised only when there is a
possible obligation arising from past events, due to
occurrence or non-occurrence of one or more uncertain
future events, not wholly within the control of the Company,
or where any present obligation cannot be measured in
terms of future outflow of resources, or where a reliable
estimate of the obligation cannot be made. Obligations are

assessed on an ongoing basis and only those having a largely
probable outflow of resources are provided for.

Contingent assets are not disclosed in the financial
statements unless an inflow of economic benefits is
probable.

3.20 Dividend to equity shareholders

Dividend to equity shareholders is recognised as a liability
and deducted from shareholders'' equity, in the period in
which the dividends are approved by the equity
shareholders in thegeneral meeting.

3.21 Earnings pershare (EPS)

Basic EPS is computed by dividing the profit or loss
attributable to the equity shareholders of the Company by
the weighted average number of Ordinary shares
outstanding during the year. Diluted EPS is computed by
adjusting the profit or loss attributable to the ordinary
equity shareholders and the weighted average number of
ordinary equity shares, for the effects of all dilutive potential
Ordinary shares.

3.22 Critical accounting judgements and key sources of
estimation uncertainty

The preparation of the financial statements in conformity
with the Ind AS requires management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial
statements and the reported amounts of the revenues and
expenses for the years presented. The estimates and
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates under different
assumptions and conditions.

The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if
the revision affects only that period, or in the period of the
revision and future periods if the revision affects both
current and future periods.

Critical Judgements

In the process of applying the Company''s accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognized inthefinancial statements:

Discount rate used to determine the carrying amount of the
Company''s defined benefit obligation

In determining the appropriate discount rate for plans
assets, the management considers the interest rates of
government bonds as provided by LIC, in currencies
consistent with the currencies of the post-employment
benefit obligation.

Contingencies and commitments

In the normal course of business, contingent liabilities may
arise from litigations and other claims against the Company.

Where the potential liabilities have a low probability of
crystallizing or are very difficult to quantify reliably, we treat
them as contingent liabilities. Such liabilities are disclosed in
the notes but are not provided for in the financial
statements. Although there can be no assurance regarding
the final outcome of the legal proceedings, we do not expect
them to have a materially adverse impact on our financial
position or profitability.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key
sources of estimation uncertainty at the end of the reporting
period, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below:

Useful lives of property, plant and equipment

As described above, the Company reviews the estimated
useful lives and residual values of property, plant and
equipment at the end of each reporting period. During the
current financial year, the management determined that
there were no changes to the useful lives and residual values
of the property, plant and equipment.

Allowances fordoubtful debts

The Company makes allowances for doubtful debts based on
an assessment of the recoverability of trade and other
receivables. The identification of doubtful debts requires
use of judgement and estimates. Where the expectation is
different from the original estimate, such difference will
impact the carrying value of the trade and other receivables
and doubtful debts expenses in the period in which such
estimate has been changed.

Allowances for inventories

Management reviews the inventory age listing on a periodic
basis. This review involves comparison of the carrying value
of the aged inventory items with the respective net
realizable value. The purpose is to ascertain whether an
allowance is required to be made in the financial statements
for any obsolete and slow-moving items. Management is
satisfied that adequate allowance for obsolete and slow-
moving inventories has been made in the financial
statements.

Liability for sales return

In making judgment for liability for sales return, the
management considered the detailed criteria for the
recognition of revenue from the sale of goods set out in Ind
AS 115 and in particular, whether the Company had
transferred to the buyer the significant risk and rewards of
ownership of the goods. Following the detailed
quantification of the Company''s liability towards sales
return, the management is satisfied that significant risk and
rewards have been transferred and that recognition of the
revenue in the current year is appropriate, in conjunction
with the recognition of an appropriate liability for sales
return.

Accruals for estimated product returns, which are based on
historical experience of actual sales returns and adjustment
on account of current market scenario is considered by
Company to be reliable estimate offuture sales returns.

24.2 Commitments

Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is ^ 3,900 thousand
as at 31 March 2025 (previous year: nil) against which advances paid aggregate ^ 1,124 thousand as at 31 March 2025 (previous
year: nil).

25. Code on Social Security

The Indian Parliament had approved the Code on Social Security, 2020 [''Code''] in September 2020 relating to employee benefits
i.e., benefits during employment as well as post-employment. The same had also received Presidential Assent. The Ministry of
Labour and Employment had released draft rules for the Code on 13 November 2020, and had invited suggestions from
stakeholders, which are under active consideration by the Ministry.

The Company will assess the impact once the subject rules are notified and will give appropriate impact in its financial statements
in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

26. Gratuity

The Company has a defined benefit gratuity plan with 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 fund has formed a trust and it is governed by the Board of Trustees.

The fund is subject to risks such as asset volatality, changes in bond yields and asset liability mismatch. In managing the plan assets,
the Board of Trustee reviews and manages the risks associated with the funded plan and aim to keep annual contributions
relatively stable at a level such that no major plan deficits arises by following effective risk management policies.

Fairvalue hierarchy

There are no reported financial assets and financial liabilities that are measured at fair value or where fair value disclosure is required
as at 31 March 2025 and 31 March 2024.

28. Financialriskmanagement

Risk is inherent in the Company''s activities but it is managed through a process of ongoing identification, measurement and
monitoring, subject to risk limits and other controls.

The financial liabilities of the Company comprise borrowings, trade and other payables to finance the operations of the Company. The
financial assets of the Company include loans, trade and other receivables, cash and cash equivalents that directly derive from the
operations. The Company has not entered into any derivative transactions.

The Company''s Board of Directors is ultimately responsible for the overall risk management approach and for providing the risk
strategies and principles.

Market risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates.

Though the Company has not entered in any forward foreign exchange contract; however, the market risk is managed on the basis of
continuous appraisal of market conditions and management''s estimate of long and short-term and changes in fair value.

Foreign currency risk management

The Company is mainly exposed to the currencies: USD, CAD,JPYand Eurocurrency.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations
arise. Exchange rate exposures are managed in accordance with the market conditions and management''s estimates.

The carrying amounts of the Company''s foreign currency dominated unhedged monetary assets and monetary liabilities at the end of
the reporting period are as follows:

Favourable impact shown as positive and adverse impact as negative.

The Company has not entered in any forward foreign exchange derivative contracts during the reporting periods.

Equity risk

There is no material equity risk relating to the Company''s equity investments. The Company''s equity investments majorly comprises of
strategic investments rather than trading purposes.

Interest risk

There is no material interest risk relating to the Company''s financial liabilities.

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The
Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposures are continuously
monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties.

Liquidity risk management

The ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate
liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year.

Liquidity risk table

The following table detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Company can be required to pay.

c) Other Disclosures

i) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies
struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

ii) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the
IncomeTax Act, 1961 which have not been recorded in the books of account.

iii) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

36. Subsequent event

The Board of Directors at its meeting held on 30-05-2025 has recommended a dividend of ^ 1.50 (15%) per equity share on the face
value of Rs. 10/- each (previous year: nil), subject to shareholders approval at the annual general meeting.

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

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

As per our report of even date

For and on behalf of For and on behalf of the Board

Pawan Nanak Bansal & Co.

Chartered Accountants Inder Mohan Sood Davinder Mohan Sood Manish Kumar

Firm Registration No.: 008953C Managing Director & CEO Executive Director & CFO Company Secretary

DIN: 00001758 DIN: 00001756 Membership No.: A16483

Alok Jain
Partner

Membership No.: 510960 New Delhi, 30 May 2025

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Mar 31, 2024

1. The normal credit period ranges from 30 days to 180 days.

2. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

3. Movement in the expected credit loss allowance: Not Applicable

4. There is no amount due by directors or officers of the Company or any of them, severally or jointly with any other persons or amount due by firms or private companies respectively in which such director is a partner or a member at any time during the reporting period.

5. There is no amount due by any of the related party.

6. For Trade receivables ageing schedule and other details, please refer note 32.

14.2 During the year ended 31 March 2024, the Company made the preferential allotment of 4,04,600 (Four Lakh Four Thousand and Six Hundred only) equity shares of face value of '' 10/- (Rupees Ten only) each fully paid up for cash, at an issue price of '' 319 (Rupees Three Hundred and Nineteen only) per equity share (which includes a premium of '' 309 per equity share), in accordance with the provisions of Sections 23(1)(b), 42, 62 and all other applicable provisions of the Companies Act, 2013 read with the Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBIICDR Regulations"). The Board of Directors have allotted these equity shares in their meeting held on 11-03-2024. As at reporting date, the entire proceeds remain unutilized in a separate bank account.

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

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.

14.4 Any holding of shares in respect of each class in the Company held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or ultimate holding company in aggregate: None

24. Contingent liabilities and commitments24.1 Contingent liabilities (not provided for)

There is no contingent liability liable to be reported.

24.2 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.

25. Code on Social Security

The Indian Parliament had approved the Code on Social Security, 2020 [''Code''] in September 2020 relating to employee benefits i.e., benefits during employment as well as post-employment. The same had also received Presidential Assent. The Ministry of Labour and Employment had released draft rules for the Code on 13 November 2020, and had invited suggestions from stakeholders, which are under active consideration by the Ministry.

The Company will assess the impact once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

26. Gratuity

The Company has a defined benefit gratuity plan with 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 fund has formed a trust and it is governed by the Board of Trustees.

The fund is subject to risks such as asset volatality, changes in bond yields and asset liability mismatch. In managing the plan assets, the Board of Trustee reviews and manages the risks associated with the funded plan and aim to keep annual contributions relatively stable at a level such that no major plan deficits arises by following effective risk management policies.

The sensitivity analysis presented above may not be a representative of the actual change in the defined benefit obligation as, in practice, it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in BalanceSheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

27. Financial instruments Capital management

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows.

The Company is not subject to any externally imposed capital requirements.

28. Financialriskmanagement

Risk is inherent in the Company''s activities but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls.

The financial liabilities of the Company comprise borrowings, trade and other payables to finance the operations of the Company. The financial assets of the Company include loans, trade and other receivables, cash and cash equivalents that directly derive from the operations. The Company has not entered into any derivative transactions.

The Company''s Board of Directors is ultimately responsible for the overall risk management approach and for providing the risk strategies and principles.

The Company is exposed to market risk, credit risk and liquidity risk.

Market risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates.

Though the Company has not entered in any forward foreign exchange contract; however, the market risk is managed on the basis of continuous appraisal of market conditions and management''s estimate of long and short-term and changes in fair value.

Foreign currency risk management

The Company is mainly exposed to the currencies: USD, CAD,JPYand Euro currency.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed in accordance with the market conditions and management''s estimates.

Foreign currency sensitivity analysis

The following table details the Company''s sensitivity to a 5% increase and decrease in the '' against the relevant foreign currency. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period.

Favourable impact shown as positive and adverse impact as negative.

The Company has not entered in any forward foreign exchange derivative contracts during the reporting periods.

Equity risk

There is no material equity risk relating to the Company''s equity investments. The Company''s equity investments majorly comprises of strategic investments rather than trading purposes.

Interest risk

There is no material interest risk relating to the Company''s financial liabilities.

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposures are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties.

Liquidity risk management

The ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year.

Liquidity risk table

The following table detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.

The Company manufactures "Communication Equipment" primarily for power utilities / other utilities and engaged in its allied services, which is the only business segment of the Company. The Company is an 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.

Note: The variations in turnover ratios are because of the efficiency recorded in the working capital management specifically at an inventory level. The increase in current assets is also supported by the increase in bank balance because of the afresh issuance of equity shares. There is an increase in average trade receivables primarily because of increase in revenue. The decrease in Debt-Equity ratio is because of the afresh equity infused.

The increase in above reported margin and return ratios are primarily because of the reported increase in revenue. It has further positive impact on profitability and the thereby, the debt service coverage ratio. Whereas, the increase in net-worth is also supported by the afresh equity issued.

b) Other Disclosures

i) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

ii) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

iii) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

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

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

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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.

---

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.

---

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.

---

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.

---

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.