Overview
The financial statements have been prepared in compliance with the requirements of the
Companies Act, 2013 and the Indian Accounting Standards (Ind AS) issued by the Ministry of
Corporate Affairs (MCA) notified under the Companies (Indian Accounting Standards) Rules,
2015. The management accepts responsibility for the integrity and objectivity of these
financial statements. The estimates and judgments relating to the financial statements
have been made on a prudent and reasonable basis, in order that the financial statements
reflect in a true and fair manner the form and substance of transaction, and reasonably
present our Companys state-of-affairs and profits of the year.
Industrial Structure and Development
The business of our Company belongs to the industry of providing communication,
transmission, protection, synchronization and cyber security solutions to a wide range of
sectors including Power Sector Infrastructure - Sub-stations, Distribution, Transmission,
Utilities – Water, Oil and Gas, Renewable Energy sector (Solar and Wind Energy etc.),
Railways and Metro Rail, Airport Communication Networks, Corporate Networks, Financial
Institutions, Mobile Communication Networks (including 4G/5G), Defense Networks for
communication equipment, Synchronization applications for autonomous driving technology
– automobiles, providing cyber security to core services (Power, Railways, Airports,
Utilities) and other emerging sectors and technologies.
Our Company designs, develops, manufacturers a wide range of advanced communication,
transmission, protection, synchronization and cyber security solutions.
Post the COVID-19 pandemic, the electronic industry still continues to be affected at
various stages of supply chain management from sourcing to delivery and thereby this
continues to have an impact on most major economies and many industries. This has
continued to cause supply chain delays, component shortages and delayed contract
implementation. While this situation is gradually easing, the world still has to continue
to learn to adopt a more technology-driven model of working and living.
We once again and whole-heartedly put on record the exceptional work by the Government
of India to implementation of Ministry of Micro, Small and Medium Enterprises (MSME)
scheme, which has been path breaking. This policy has helped small and medium businesses
to overcome their financial challenges and with the impetus of Make in India, is vastly
improving the prospects of our Company. Our Company is in its best position since its
inception to benefit with reference to its continued technology investments and
developments and state-of-the-art product portfolio and solutions, for the domestic and
exports markets.
It is important to note and understand that global investments in technology and
specifically in product and related product technology development has continue to decline
in the past few years while "App" based applications and investments have
continued to increase. Since our Company has continued to invest its resources in core
product technologies that are essential, required and used by various critical
infrastructure sectors to enhance their performance, productivity and security, we are
benefitting from these investments made over the past few years.
Business Operation
Being indigenous manufacturers, Valiant is apparently a beneficiary of all business
opportunities that are notably arising in the Indian Public Sector out of the Make in
India and Atmanirbhar Bharat initiatives of our Honble Prime Minister of India.
Our Company is focused on providing a mix of products, advance technologies and
services for domestic and export market. Various initiatives taken by the Government of
India, under the leadership of our Honble Prime Minister, such as "Aatamnirbhar
Bharat", "Make in India", "Digital India" and "PMA
Policy", the Indian business scenario is vibrant and promising. All the initiatives
taken by the Government of India are helping indigenous manufacturers of telecom,
communications, transmission, synchronization and cyber security equipment in India.
Various products of our Company are approved by major corporations such as PGCIL (Power
Grid), most State Electricity Boards (SEBs) in India and various National Electricity
Companies in various countries.
Our Company is working on various opportunities to scale its products and technologies
across various utility sectors and corporate applications. Each of its technologies has
the potential to provide significant positive impact on the financials of our Company.
Being the only Indian manufacturer for various products in select domains, our Company
has a distinctive advantage over its MNCs competitors. All the initiatives taken by the
Government of India are helping our Company (being an indigenous manufacturer of
communications, transmission, synchronization, routing and cyber security equipment) to
capitalize its position in India.
There are substantial opportunities in India, wherein the products of our Company have
been offered by the prominent industrial leaders in turnkey projects pertaining to power
and defence sector of the country.
In exports, our Company continues to expand its customer base, footprint, distributor
and re-seller relationships, participation in exhibitions to provide the necessary
exposure to our Companys products and technologies. Our recent participation in
Distributech in February 2023, a premier annual event for transmission and distribution,
showcasing cutting-edge technologies that power our homes and businesses, a conference and
an exhibition that showcases latest in electricity delivery automation, energy efficiency,
and demand response for energy resource management, renewable energy, smart cities, and
EVSE interconnection, advancements in resiliency and reliability, and T&D system
operations.
Opportunities
Our Company is focusing on its marketing efforts to promote its wide range of products
and technologies, its MPLS Routers, Synchronization, Cyber and Network Security equipment
and other technology products which are expected to have a substantially positive impact
on our Companys financial performance. Our unique range of Network Protection solutions
for providing Network / Path / Equipment (Switch/Server/Router) redundancy and protection
solutions for network reliability to currently cater to the network security requirements
to its international customers and being received well.
Our Company continues to add features to its range of Frequency, Phase and the Time
Synchronization range of products with its GPS/GNSS based Primary Reference Clocks with
integrated IEEE-1588v2 PTP Grandmaster, PTP 1588v2 Slave, PTP 1588v2 Switch &
Transparent Clocks and NTP Time Server for use in various sectors including the Defence
sector. This is another area of growth for our Company.
New product development and technological innovations are Valiants assets. With
introduction of new products, designs, solutions and applications, our Company looks
forward to growth in sales and profits.
Our Company has a focus on new product development, obtaining of certifications of the
existing products in various international markets and sectors and building a larger base
of distributors and value-added re-sellers through which it can sell its products,
worldwide.
Quality Initiatives
Valiant believes in sustained commitment to highest levels of quality, best-in-class
product offerings and robust and fair business practices to help our Company to attain its
objectives.
Our Company has successfully achieved the yardsticks to meet with standards ISO
9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 10001:2018
(Customer Satisfaction) and ISO 45001:2018 (Occupational Health & Safety).
The management believes that all these quality initiatives will further strengthen our
Companys product line in the global market.
New Products and Technologies
Our Company offers a comprehensive range of Cyber Security products ans solutions that
are designed for the Power Utilities, SCADA, Defence and well as for commercial
applications such as Financial and Corporate. The VCL "Beyond the Firewall"
cyber-security solutions are designed to assist organizations to detect, prevent and
secure their networks against firewall breaches, cyber-attacks, ransomware-attacks, DoS
attacks and to assist in conducting forensic analysis and trace the attack route in near
real-time. Valiants data encryption equipment is in the process of being upgraded to make
it
Quantum-Safe.
VCL Cyber Security products assist network administrators to identify existing network
vulnerabilities and implement a "real-time" counter measure defence strategy
which automatically comes into effect in the event of a cyber-attack / firewall breach.
VCL advanced and comprehensive cyber defence solutions generate audio-visual alarms, to
automatically switching to a redundant network / to a redundant firewall, as well as to
isolate the network and protect the critical infrastructure assets in case of a
cyber-attack / firewall breach / DoS attack.
Our Company has introduced its latest 10G Optical repeater, a ruggedized and robust,
3-R 10G Repeater that Re-Generates, Re-Shapes, and Re-Times the 10G Ethernet optical
signal, so that it may be extended over extended optical spans. By installing a VCL-5051,
the existing 10G interfaces can be extended by a factor of "n" over multiple
optical spans, with each optical span being approximately 100KM / 62 Miles.
During this year, our Company has introduced its Grid Automation and Grid Islanding
solution. Our Company is actively working with National and State Electricity Boards to
offer this solution to identify the trouble-spots and isolate the Power Utility from the
national grid in the event of an impending failure. The additional objective of the
solution is also to create islands within Power Utilitys micro-grid, by isolating any
area or zone that is threatening to destabilize Power Utilitys power distribution network
from within.
While the conventionally regarded "over-load" and "under-frequency"
conditions are not the only ones that can threaten the stability of any national power
grid, the bigger threat, in todays scenario, arises from cyber-attacks and hostile
intrusions that could be initiated by an enemy country or a bad actor that is seeking to
cripple any nations infrastructure. Therefore, it becomes imperative that counter-defence
measures are put into place so that if any such eventuality arises, it can be effectively
contained by "isolation" and "islanding".
In the event of an impending "National Grid Failure", the power generation
within a state or a specific region needs to be isolated and islanded so it can continue
to generate and supply power to its consumers and ensure that all its downstream feeders
and consumers remain in healthy condition. The primary purpose of the solution in
achieving the given objective, which would be to identify and isolate in a phased manner,
the problem points that inter-connect Power Utilitys power infrastructure to the national
grid.
Our Company provides such a unique solution and is working with Electricity Boards and
relevant authorities to implement these cutting-edge technologies in the Power Sector,
globally.
Our Company is also offering a comprehensive range of IT (Information Technology) and
OT (Operational Technology) products that play an increasingly critical roles in ensuring
reliable, cyber safe, and efficient operation of utilities, power generation,
transmission, and distribution systems.
VCL offers a comprehensive suite of IT and OT products and solutions which are used to
provide end-to-end communication, transmission, protection, synchronization and
cyber-security for Utilities and Power networks.
The use of integrated IT and OT products in utilities and the power sector is
transforming the way energy is generated, transmitted, and distributed. It is enhancing
operational efficiency, grid reliability, and operational safety while also paving the way
for a more sustainable and resilient, safe and cyber-secure power grid, which is critical
to every nation.
These opportunities take more importance due to the foresight of our Honorable Prime
Minister Shri Modi Ji for implementing Government policies to promote Make in India and
Atmanirbhar Bharat for the manufacturing and MSME sector in India.
Your management is confident that these products and technologies will help to create
substantial future growth opportunities for our Company.
Marketing
Our Company is focused on expanding its global marketing network and building a larger
base of associates / distributors and re-sellers, through which it can sell its products,
on a worldwide basis. Our Company has its equipment successfully installed in over 110
countries now.
Our Company has successful installations of its various equipment in over 5000+ power
sub-stations of 765kV, 440kV, 400kV, 384kV, 220kV, 132kV, 110kV, 66kV and 33kV capacities,
worldwide.
Our Company is expanding its marketing network in Europe and South America. Our Company
has appointed distributors in Paraguay, Uruguay, Peru, Chile, Portugal, Cambodia, Vietnam,
the Philippines, Thailand for its Cyber-Security and Power Utility products.
Our Company is also happy to announce an addition of new customers to its reference
list and further receiving repeat orders from existing prestigious customers including the
Government, Defence, Transport and the Power sector.
The recent reference customer include: United States Government (various agencies
– Classified), Ministry of Defence, Romania (NATO), Ministry of Defence, Serbia,
Ministry of Defence, Sultanate of Oman, Airborne Early Warning & Control (AEW&C)
communication systems, Lockheed Martin Corporation, USA, Tesla Inc., USA, National
Electricity Grid, Paraguay and many more.
Our Company is delighted to see our innovation, research and development efforts are
being recognized by some of the most prestigious customers worldwide, and that our
products and solutions are being used in some of the most critical projects and
applications. Each of our communication, transmission, protection, synchronization and
cyber-security verticals have the technological depth and the opportunity to scale. We are
very happy on these encouraging developments and that our Company is on a strong path to
growth.
Threats
The electronic industry is still facing disruption in production that are causing some
delays in closing projects. Our Company is too forced to carry higher inventory in
comparison to previous years because of ongoing world-wide supply chain disruption in
semi-conductors.
However, in view of the revenue opportunities as cited above, we expect the same shall
be translated in cash and return to its usual level, in the near future.
Additionally, the communication sector, being a high technology-intensive business is
prone to rapid technological obsolescence. To cope with an ever changing dynamic and
highly competitive communications business environment, our Company is innovating and
evolving rapidly; offering technically advanced and competitively priced products,
solutions and applications to the demanding international customers, while competing with
some of the best businesses in the communication field, in the world.
Future Prospects
Our Company has started the current year with an order book exceeding 3,600 lacs, with
an expected execution period of next 12 to 15 months. These details have been disclosed by
our Company in its statutory filings before stock exchange(s) and can also be accessed at
the website of our Company.
Valiant has successfully partnered in the Indian market with Tejas Networks Limited
[NSE: TEJASNET], a Tata Group company. It is a testimony that our natural partnership is a
winning combination in all business opportunities falling under Make-in-India wherein,
Tejas and Valiant compete as a team against foreign MNCs.
Valiant and Tejas have now partnered for the forthcoming large-scale business
opportunities for their products supplies at the State Electricity Boards (SEBs) of
Kerela, Tamil Nadu, Telangana and Gujarat. These business opportunities are valued at over
100+ crores for Valiant.
Valiant has also partnered with Tejas and another Tata flagship company, for power
utility markets in Australia for multi-years contracts. Given the global reach of the Tata
Group, the management is optimistic about the outcome about such opportunities.
Our Company is clearly focused towards the design and d e v e l o p m e n t of c o m m
u n i c a t i o n, t r a n s m i s s i o n, synchronization, network reliability and cyber
security equipment and solutions, for the national and international communication
marketplace with the continuous introduction of new products and technologies, our Company
is focused on marketing, distribution and support of its product range.
Our Company is in the process of introducing new products during the year 2023-2024 for
Power Utilities, Smart Grid, SCADA and Secure Communications and network reliability
applications. Some of these products are already deployed in various networks, worldwide.
A series of new products based on advanced technologies including products that are
Quantum-Safe ready are being introduced to secure high-speed Ethernet / IP data
communication links.
Outlook
Our Company continues to design, develop and introduce new products and technologies
and strengthen its marketing network, worldwide. The introduction of new products and
technologies are expected to help to increase export sales growth in the current year. Our
Company has introduced many new products during the past one year and is confident that
these new products will help to increase its sales and performance in the current year
ending 31 March 2024.
With the focus on developing new solutions for the fast-growing Power Utility and
Transportation Sectors such as the Railways and Metro, our Company continues to make rapid
advancements both in technology upgradation and expanding its marketing footprint so that
it can have a higher value share in both of these sectors.
For the current year, the management expects a double-digit growth in revenue on an
annual basis.
Segment- wise Performance
During the year 2022-23, the 67% (previous year: 35%) of Groups operating revenue
comes from India, while the 8% (previous year: 15%) and 12% (previous year: 11%) is from
the US and European market respectively. The balance 13% (previous year: 39%) of the sales
is contributed by the rest of the world.
Risk and Concerns
Risk is an inherent aspect of every business. The communication sector being part of a
rapidly changing technology orbit, the level of risk increases due to high technology
obsolescence. However, continuous technological innovation, product development, value
additions by research and development can minimize this class of business risk. Effective
reporting and control mechanisms ensure timely information availability and facilitate
proactive risk management.
The business in Indian environment has long gestation period and inherited execution
delays, consequently, causes volatility in revenue recognition and profit figures in
financial statements.
Further, in view of Industrial trend in India, our Company may face the delay in debtor
realizations, which may have an adverse impact on cash position of our Company in the
short-term. Consequently, our Company may face challenges to maintain the working capital
requirements in view of upcoming larger opportunities.
Our Company may also face challenges meeting the requisite financial criteria of
tender-based business, for which Company has to rely on other larger business entities,
which may have an adverse impact on margins.
The Board of Directors is responsible for monitoring risk levels on various parameters
and their implementation to ensure the de-risking of the business at various levels.
Further, the Audit Committee provides direction on the risk management.
Internal Control System
Our Company has an adequate system of internal controls, implemented by the management
to achieve efficiency in operations, optimum utilization of resources, effective
monitoring of systems and compliance with applicable laws.
A qualified and independent Audit Committee of the Board of Directors reviews the
internal audit reports and the adequacy of internal controls.
Exchange Rate Fluctuation
The functional currency of your Company is the Indian rupee, whereas substantial
business receipts and payments are in foreign currencies. The exchange rate between the
rupee and foreign currencies have been changing substantially, and your Company faces the
risks associated with exchange rate fluctuation and translation effect, wherein the
appreciation of the rupee against foreign currencies, adversely impacts its profitability
and operating results.
Human Resources
Human resource is most precious asset of our Company and our Company seeks to attract
and retain the best talent available. Our Company provides an environment which encourages
initiatives, innovative thinking and recognizes and rewards performance. Since our Company
operates in state-of-the-art technologies, necessary training and development of its
personnel are conducted on a continuous basis. Industrial relations with all employees are
cordial. The Directors Report may be referred for any further details.
Financial and Operational Performance
Our Company has achieved its all-time high revenue figures for both at standalone and
group level in the reporting year, which have positive impact on profitability and
thereby; margins have also been improved as provided below:
At Standalone Level
(in Lacs)
| Annual basis: |
CY2022-23 |
PY2021-22 |
| Revenue |
3,019 |
1,232 |
| EBITDA $ |
467 |
(219) |
| PBT# |
250 |
(427) |
| Operating EBITDA margin (%) |
15.46% |
(17.79%) |
At Group Level
(in Lacs)
| Annual basis: |
CY2022-23 |
PY2021-22 |
| Revenue |
3,150 |
1,320 |
| EBITDA$ |
441 |
(154) |
| PBT# |
224 |
(361) |
| Operating EBITDA margin (%) |
13.99% |
(11.64%) |
$EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and
Amortization #PBT stands for Profit before Tax.
Significant Change in Financial Ratios
All key financial ratios have been adequately disclosed at note 34 of standalone
financial statements and at note 36 of consolidated financial statements.
Shareholders Fund
A statement of Shareholders Fund based on consolidated financial statements as on 31
March 2023 along with the comparison with previous two years is given below:
(In thousands)
| Particulars |
Year ended on 31 March 2023 |
Year ended on 31 March 2022 |
Year ended on 31 March 2021 |
|
(Audited) |
(Audited) |
(Audited) |
| Equity Paid-up Capital |
72,235 |
72,235 |
72,235 |
| Other Equity |
2,57,173 |
2,37,399 |
2,68,963 |
| Shareholders Fund / Equity |
3,29,408 |
3,09,634 |
3,41,198 |
| Book Value (per equity share) |
45.60/- |
42.86/- |
47.23/- |
Cautionary Statement
Statements and Management Discussion and Analysis describing our Companys objectives
and expectations may be forward looking, but within the meaning of applicable laws and
regulations. Actual results may differ from those expressed in the statement.
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