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.