Olympic Cards Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Material Accounting Policies

2.1. Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards (“Ind AS”)
prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter. The accounting policies are applied
consistently to all the periods presented in the financial statements. The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,2015 and relevant
amendment rules issued thereafter.

2.2. Basis of preparation of Financial Statements

The financial statements have been prepared on a historical cost convention and accrual basis, except certain
financial assets and liabilities measured at fair value and plan assets towards defined benefit plans, which are
measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique

The financial statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India. Further, the financial statements have been prepared on historical cost basis.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services.

The Financial Statements are presented in Indian Rupees which is the Company’s Functional and
Presentation currency, and all values are rounded to the nearest Lakhs (Up to Two Decimals), except where
otherwise indicated

2.3. Property Plant and Equipment:

Property, plant and equipment are stated at cost of acquisition less accumulated depreciation and accumulated
impairment loss if any., Freehold land is carried at historical cost. Historical cost of items of Property, Plant
and Equipment includes expenditure that is directly attributable to the acquisition and installation, borrowing
costs during the construction period and excludes any duties or taxes recoverable. Subsequent cost is included
in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of such item can be
measured reliably.

If significant parts of an item of Property, Plant and Equipment have different useful lives then they are
accounted for as separate components of Property, Plant and Equipment. The carrying amount of any
component accounted for as a separate asset is de-recognised when replaced or disposed. All other repairs and
maintenance expenses are charged to Statement of Profit and Loss during the reporting period in which they
are incurred.

An item of Property Plant and Equipment is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. Gains or losses arising on retirement or disposal of items of Property,
Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the Statement of Profit and Loss when the asset is de-recognized.
Advances paid towards the acquisition of Property, Plant and Equipment outstanding at each reporting date
are classified as Capital Advances under Other Non-Current Assets.

The carrying amount of an item of property, plant and equipment is derecognised

(a) On disposal; or

(b) When no future economic benefits are expected from its use or disposal.

The gain or loss arising from the de recognition of an item of property, plant and equipment is included in the
statement of profit and loss when the item is derecognised. The gain or loss arising from the de recognition of
an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if
any, and the carrying amount of the item.

Estimated useful lives of the assets, based on technical assessment, which are different in certain cases from
those prescribed in Schedule II to the Act, are as follows:

2.4. Depreciation and Amortization.

The company depreciates property, plant and equipment over their estimated useful lives using the straight¬
line value method as prescribed under Part C of Schedule II of the Companies Act, 2013. Depreciation on
additions / deletions has been provided on a pro-rata basis. Each part of an item of property, plant and
equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. The
useful life of the assets is estimated based on historical experience, technical estimates and industry
information. These estimates include an assumption regarding periodic maintenances and appropriate level
of annual capital expenditures to maintain the assets. The assets less than '' 10,000/- are charged off to Profit
and loss account.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial
year. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is
probable that future economic benefits associated with these will flow to the company and the cost of the item
can be measured reliably. Repairs and maintenance costs are recognized in net profit in the Statement of Profit
and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial
statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement
of Profit and Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less
cost to sell.

Items of property, plant and equipment retired from active use and held for disposal is stated at the lower of
their carrying amount and net realisable value. Any write-down is recognised in the statement of profit and
loss. While the cost of the fixed asset not ready for its intended use on the balance sheet date are disclosed
under capital work-in-progress, advances paid towards the acquisition of fixed assets which are outstanding
at each balance sheet date are disclosed under ''loans and advances'' and grouped as ''non-current''.

The residual value of an asset is not more than 5% of the original cost of that asset. The estimated useful life
and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.

Impairment Loss: At each balance sheet date, the Company assesses whether there is any indication that any
property, plant and equipment with finite lives may be impaired. If any such impairment exists the
recoverable amount of an asset is estimated to determine the extent of impairment, if any. Where it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs.

2.5. Intangible Assets:

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment
losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as
the difference between the net disposal proceeds and the carrying amount of the asset and recognised as
income or expense in the Statement of Profit and Loss.

Impairment Loss: At each balance sheet date, the Company assesses whether there is any indication that any
intangible assets with finite lives may be impaired. If any such impairment exists the recoverable amount of
an asset is estimated to determine the extent of impairment, if any. Where it is not possible to estimate the
recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash¬
generating unit to which the asset belongs.

2.6. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset in one entity and a financial liability or
equity instrument in another entity.

A. FINANCIALASSETS

(i) Financial Assets - Initial recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVTPL), financial assets are
recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to purchase or sell the asset.

(ii) Financial Assets - Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) Financial Assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business model with an objective to hold these assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates, to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Interest income from these financial assets is
included in finance income using the effective interest rate ("EIR") method. Impairment gains or losses
arising on these assets are recognised in the Statement ofProfit and Loss.

b) Financial Assets measured at fair value

Financial assets are measured at fair value through other comprehensive income (FVOCI) if these financial
assets are held within a business model with an objective to hold these assets in order to collect contractual
cash flows or to sell these financial assets and the contractual terms of the financial asset give rise on specified
dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and losses which are recognised in the Statement of Profit
and Loss. Financial assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value
through profit or loss.

(iii) Impairment of Financial Assets

In accordance with Ind-AS 109, the Company applies the expected credit loss ("ECL") model for
measurement and recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade
Receivables. Simplified approach does not require the Company to track changes in credit risk.

Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its
initial recognition. For recognition of impairment loss on other financial assets and risk exposure, the
Company determines whether there has been a significant increase in the credit risk since initial recognition.

If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However,
if credit risk has increased significantly, lifetime ECL is used.

If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original EIR. Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from
default events that are possible within 12 months after the reporting date. ECL impairment loss allowance (or
reversal) recognised during the period is recorded as expense/ income in the Statement of Profit and Loss.

(iv) De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the
financial asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of
the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognizes its retained interest in the assets and an associated
liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.

B. FINANCIAL LIABILITIES

(i) Financial Liabilities - Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and
borrowings and payables as appropriate. All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly attributable transaction costs.

(ii) Financial Liabilities - Subsequent measurement

a) Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated
upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised
in the Statement of Profit and Loss. Financial guarantee contracts issued by the Company are those contracts
that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails
to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts
are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to
the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less
cumulative amortisation. Amortisation is recognised as finance income in the Statement of Profit and Loss.

b) Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or
redemption of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit
and Loss. Where the terms of a financial liability are re-negotiated and the Company issues equity
instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is
recognised in the Statement of Profit and Loss; measured as a difference between the carrying amount of the
financial liability and the fair value of equity instrument issued.

(iii) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or
expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as de-recognition of the original liability and recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(iv) Offsetting financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business.

2.7. Cash And Cash Equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term,
highly liquid investments maturing within 90 days from the date of acquisition. Cash and cash equivalents are
readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.
The Company’s Cash Credit and Overdraft forms part of short-term borrowings, and fixed deposits are shown
as Other Financial Assets - Non-Current and not forming part of Cash and Cash Equivalents.

2.8. Inventory

The Company Inventory consists of Raw Material, Work in Progress and Finished goods where are valued at
Cost or Net Realisable value whichever is lower. Net Realizable Value represents the estimated selling price
in the ordinary course of business less estimated costs of completion and estimated costs necessary to make
the sale. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective present location and condition

2.9. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole: -

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a
recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as
a whole) at the end of each reporting period. The Company’s Valuation team determines the policies and
procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial
assets measured at fair value, and for non-recurring measurement.

2.10 Revenue Recognition:

Revenue is measured at the transaction price that the Company receives or expects to receive as consideration
for goods supplied and services rendered; net of returns and estimates of variable consideration such as
discounts to customers. Revenue from sale of goods excludes goods and services tax which are payable in
respect of sale of goods.

Revenue from the sale of goods and services is recognized when the company performs its obligations to its
customers and the amount of revenue can be measured reliably and recovery of the consideration is probable.
The timing of such recognition in case of sale of goods is when the control over the same is transferred to the
customers which is mainly upon delivery.

The Company recognizes revenue from contracts with customers based on a five-step model, such as to,
identifying the contracts with a customer, identifying the performance obligations in the contract, determine
the transaction price, allocate the transaction price to the performance obligations in the contract and
recognize revenue when (or as) the entity satisfies a performance obligation at a point in time or over time.

The Company satisfies a performance obligation and recognizes revenue over time, if one of the following
criteria is met:

• The customer simultaneously receives and consumes the benefits provided by the Company performance as
the Company performs; or

• The Company’s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or

• The Company’s performance does not create an asset with an alternative use to the Company and the entity
has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognized at the point
in time at which the performance obligation is satisfied. Revenue is recognized upon transfer of control of
promised products or services to customers in an amount that reflects the consideration we expect to receive
in exchange for those products or services.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised
products or services to customers in an amount that reflects the consideration the Company expects to receive
in exchange for those products or services.

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivable excluding taxes or duties collected on behalf of the government and reduced by any rebates and
trade discount allowed. Contract assets include costs incurred to fulfil a contract with a customer. Where the
amount of consideration received from a customer exceeds the amount of revenue recognized, this gives rise
to a contract liability.

a. Sales Income - Income from sale is booked based on agreements / arrangements with the concerned parties
or as and when revenue can be reliably measured. Revenue from the sale of goods is measured at transaction
price received or receivable, net of returns and allowances, trade discounts and volume rebates.

b. Interest Income - Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest Income
Revenue is recognized on a time proportion basis with reference to the principal outstanding and at the
effective interest rate applicable.

2.11. Employee Benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognized
in respect of employees’ services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.

(ii) Defined contribution plan

The Company''s contribution to Provident Fund is determined based on a fixed percentage of the eligible
employees'' salary and charged to the Statement of Profit and Loss on accrual basis. The Company has
categorised its Provident Fund contributions as a defined contribution plan since it has no further obligations
beyond these contributions.

(iii) Defined benefit plan

The Company’s liability towards gratuity, being a defined benefit plan is accounted for on the basis of an
independent actuarial valuation based on Projected Unit Credit Method. The liability or asset recognised in
the balance sheet is the present value of the defined benefit obligation at the end of the reporting period less
the fair value of plan assets. Gratuity liability is funded by payments to the trust established for the purpose.
The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on the government bonds that have
terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Service cost
and the net interest cost is included in employee benefit expense in the Statement of Profit and Loss. Actuarial
gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are
recognised immediately in ‘other comprehensive income’ as income or expense.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in the Statement of Profit and Loss as past service cost.

2.12. Borrowing Cost

General and specific borrowing costs directly attributable to the acquisition/ construction of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended
use, are added to the cost of those assets, until such time the assets are substantially ready for their intended
use. All other borrowing costs are recognised as an expense in Statement of Profit and Loss in the period in
which they are incurred. Investment income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation. Other borrowing costs are expensed in the period in which they are incurred.

2.13. Lease

Where Company is a Lessee

Assets acquired under leases where a significant portion of the risks and rewards of ownership are retained by
the lessor are classified as operating leases. In respect of operating lease, rentals and all other expenses are
treated as revenue expenditure.

Operating lease payments are recognized as expenses in the statement of profit and loss on a straight-line
basis over the lease term.

For Finance lease, at the commencement date, Company recognizes a right-of-use asset measured at cost and
a lease liability measured at the present value of the lease payments that are not paid at that date. The lease
payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined.
Where Company is a Lessor

Operating lease receipts are recognized as Incomes in the statement of profit and loss on straight-line basis
over the lease term. In respect of the property under lease the revenue is recognized in the statement of profit
and loss account over the lease terms.

2.14. Segment Reporting:

The Company is principally engaged in a single business segment viz. market of wedding cards and other
associated products. The Board of directors of the Company, which has been identified as being the chief
operating decision maker (CODM), evaluates the Company’s performance, allocate resources based on the
analysis of the various performance indicators of the Company as a single unit. Accordingly, there is no other
reportable segment in terms ofInd-AS 108 Operating Segments’.

2.14. Taxation

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

(i) Current income tax liabilities and/or assets comprise those obligations to, or claims from, fiscal
authorities relating to the current or prior reporting periods, that are unpaid at the reporting date.

(ii) Current tax is payable on taxable profit, which differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by
the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect
to the applicable tax regulations which may be subject to interpretation and creates provisions, where
appropriate, on the basis of amounts expected to be paid to the tax authorities.

(iii) Deferred income taxes are calculated using the liability method on temporary differences between
the carrying amounts of assets and liabilities and their tax bases. Deferred income tax is determined using tax
rates (and laws) that have been enacted orsubstantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.

(iv) Deferred tax assets are recognised to the extent it is probable that the underlying tax loss or deductible
temporary difference will be utilised against future taxable income. This is assessed based on the Company’s
forecast of future operations results, adjusted for significant non-taxable income and expenses and specific
limits on the use of any unused tax loss or credit. Deferred tax is not provided on the initial recognition of
goodwill, or on the initial recognition of an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit.

(v) Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense
in profit or loss, except where they relate to items that are recognised in other comprehensive income or
directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or
equity, respectively.

(vi) Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset

and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously

---

Mar 31, 2024

2. Material Accounting Policies

2.1 Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards ("Ind AS") prescribed
under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015
and relevant amendment rules issued thereafter. The accounting policies are applied consistently to all the
periods presented in the financial statements. The Ind AS are prescribed under Section 133 of the Act read with
Rule 3 of the Companies (Indian Acounting Standards) Rules,2015 and relevant amendment rules issued thereafter.

2.2 Basis of preparation of Financial Statements

The financial statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India. Further, the financial statements have been prepared on historical cost basis.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The financial statements are authorized for issue by the Company''s Board of Directors on 29^,h May 2024.

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

• It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating
cycle and it is held primarily for the purpose of being traded;

• It is expected to be realised within 12 months after the reporting date; or

• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at

least 12 months after the reporting date.

• All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company''s normal operating cycle;

• It is held primarily for the purpose of being traded

• It is due to be settled within 12 months after the reporting date; or the Company does not have an

unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a

liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do
not affect its classification.

• All other liabilities are classified as non-current.

2.3 Use of Estimates and Judgements

The preparation of these Financial Statements in conformity with the recognition and measurement principles of
Ind AS requires the management of the Company to make estimates and assumptions that affect the reported
balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the Financial
Statements and the reported amounts of income and expense of the periods presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods are affected.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that
have the most significant effect to the carrying amounts of assets and liabilities within the next financial year are
included in the following notes.

Valuation of Deferred Tax Liabilities/Assets

The Company reviews the carrying amount of deferred tax liabilities/assets at the end of each reporting period.
Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be
made. Provisions (except retirement benefits and leave encashments) are not discounted to its present value and
are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are not
recognised in the Financial Statements but are disclosed separately.

Impairment of Investments

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for.

2.4 Revenue Recognition

Revenue is measured at the transaction price that the Company receives or expects to receive as consideration for
goods supplied and services rendered; net of returns and estimates of variable consideration such as discounts to
customers. Revenue from sale of goods excludes goods and services tax which are payable in respect of sale of
goods.

Revenue from the sale of goods and services is recognized when the company performs its obligations to its
customers and the amount of revenue can be measured reliably and recovery of the consideration is probable.
The timing of such recognition in case of sale of goods is when the control over the same is transferred to the
customers which is mainly upon delivery.

a. Sales Income - Income from sale is booked based on agreements / arrangements with the concerned parties
or as and when revenue can be reliably measured. Revenue from the sale of goods is measured at transaction
price received or receivable, net of returns and allowances, trade discounts and volume rebates.

b. Interest Income Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest Income Revenue
is recognized on a time proportion basis with reference to the principal outstanding and at the effective interest
rate applicable

2.5 Property, Plant and Equipment

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of bringing an
asset to working condition and location for its intended use. Expenditure incurred after the property, plant and
equipment have been put into operations, such as repairs and maintenance, are normally charged to Statements
of Profit and Loss in the period in which the costs are incurred

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net
within other income/other expense in Statement of Profit and Loss.

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part
of cost of such assets. All other borrowing costs are charged to revenue, during the period in which they are
incurred.

Depreciation

Depreciation on Property, Plant and Equipment is calculated using written down value method (WDV) to write
down the cost of property and equipment to their residual values over their estimated useful lives.

Assets in the course of development or construction and freehold land are not depreciated.

Other assets are stated at cost less accumulated depreciation and any provision for impairment. Depreciation

2.6 Intangible Assets

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Intangible
Assets with finite lives are amortized on a Written Down Value basis over the estimated useful economic life and
assessed for impairment whenever there is an indication that the intangible asset may be impaired. The estimated
useful life of intangible assets is 6 years.

The amortisation expense on intangible asset is recognised in the Statement of Profit and Loss unless such
expenditure forms part of carrying value of another asset. Gains or losses arising from derecognition of an
intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognised in Statement of Profit and Loss when the asset is derecognised.

2.7 Financial Instruments

Financial assets and liabilities are recognized when the company becomes a party to the contractual provisions of
the instrument. Financial assets and liabilities are initially measured at fair value.

Financial Assets

Initial Recognition

On initial recognition, a financial asset is recognized at fair value, in case of financial assets which are recognized
at fair value through profit and loss (FVTPL), the transaction costs are recognized in the statement of profit and
loss. In other cases, transaction costs that are directly attributable to the acquisition of financial assets are added
to the fair value measured on initial recognition of financial assets. Trade receivables that do not contain a
significant financing component are measured at transaction price.

Subsequent Measurement

Financial assets are subsequently classified as measurement at:

1. Amortized cost

2. Fair value through profit and loss (FVTPL)

3. Fair value through other comprehensive income (FVTOCI)

Financial Assets at Amortised Cost

A financial asset is subsequently measured at the amortized cost if both the following conditions are met: a) The
asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and b)
Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and
Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

Financial Assets at Fair value through Other Comprehensive Income ("FVTOCI")

Financial assets that are held within the business model whose objective is achieved by both, selling financial
assets and collecting contractual cash flows that are solely payment of principal and interest are subsequently
measured at fair value through other comprehensive income (OCI). Fair value movements are recognized in the
other comprehensive income (OCI). Interest income measured in using the EIR method and impairment loses, if
any are recognized in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method.

Financial Assets at Fair Value through Profit and Loss ("FVTPL")

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are
measured at fair value with all changes in fair value, including interest income and dividend income if any,
recognized as other income in the statement of Profit and Loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
assets expire, or it transfers the contractual rights to receive the cash flows from the asset.

Financial Liabilities
Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of
profit and loss, loans and borrowings, payables as appropriate.

All Financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.

Derecognition

The Company de-recognizes financial liabilities only when Company''s obligations are discharged or cancelled or
have expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability.

The difference between the carrying amount of the financial liability de-recognised and the consideration paid
and payable is recognised in the Statement of Profit and Loss.

2.8 Taxation

Income tax expenses for the year comprises of current tax and deferred tax. It is recognized in the Statement of
Profit and Loss except to the extent it relates to a business combination or to an item which is recognized directly
in equity or in other comprehensive income.

Current Tax

Current tax is the expected tax payable on the taxable income for the year using applicable tax rates at the
Balance Sheet date. Current tax and current tax liabilities are offset when there is a legally enforceable right to set
off the recognised amount and there is an intention to settle the asset and liability on a net basis.

Deferred Tax

A deferred tax liability is recognized based on the expected manner of realization or settlement of carrying
amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting
period. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be
available against which the assets can be utilized. Deferred tax assets are reviewed at each reporting date and
reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred tax assets and deferred tax liabilities are offset when there is legally enforceable right to set off current
tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to the
income taxes levied by the same taxation authorities.

2.9 Earnings per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share.
Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after
attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

2.10 Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby profit /
(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating, investing and financing activities of the
Company are segregated based on the available information.

2.11 Inventories

Inventories are valued at lower of cost or net realizable value. Net Realizable Value represents the estimated
selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary
to make the sale. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective present location and condition.

2.12 Finance Costs

Finance Costs refer to expenses incurred by the company in connection with the borrowing of funds, including
interest expenses, amortization of discounts or premiums related to borrowings, and ancillary costs incurred in
connection with the arrangement of borrowings.

Interest expense includes issue costs that are initially recognised as part of the carrying value of the financial
liability and amortised over the expected life using the effective interest method. These include fees and
commissions payable to advisers and other expenses such as external legal costs, rating fee etc., provided these
are incremental costs that are directly related to the issue of a financial liability.

2.13 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months
for the purpose of classification of its assets and liabilities as current and non-current.

2.14 Employee Benefits

Employee benefits include provident fund, employees state insurance scheme and gratuity fund.

Defined Benefit Plans

For defined benefit plans in the form of gratuity fund, the company makes annual contribution to a Gratuity Fund
administered and managed by a trust through Life Insurance Corporation of India. The net present value of the
obligation towards gratuity is determined using the Projected Unit Credit method.

Defined Contribution Plans

The Company''s contribution to provident fund and employee state insurance are considered as defined
contribution plans and are charged as an expense based on the amount of contribution required to be made and
when services are rendered by the employees.

2.15 Events after the Reporting Period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting
period. The financial statements are adjusted for such events before authorisation for issue. Non-adjusting events
are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events
after the reporting date are not accounted, but disclosed.

2.16 Investments

Investments that are realizable and intended to be held for not more than a year are classified as current
investments. All other Investments are classified as Long term Investments carried at cost. However, Provision for
diminution in value is made to recognize a decline other than temporary in the value of Investments

---

Mar 31, 2016

Statement of Significant Accounting Policies

Olympic Cards Limited, ''the Company⁷, was incorporated on 21^st April 1992 in Chennai. Prior to the incorporation of the Company, the promoters were in the Printing Industry for 46 years. The Company is the leading Manufacturer and Supplier of Invitation cards in India. The Company had successfully come out with a public issue in the month of March 2012.

a) Basis of Preparation

The financial statements have been prepared and presented accordance with the generally accepted accounting principal in India (Indian GAAP) under the historical cost convention on an accrual basis. The Company has prepared these financial statements to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular 15/2013 dated 13^th September, 2013, issued by Ministry of Corporate Affair in respect of Section 133 of the Companies Act, 2013

The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management⁷ s best knowledge of current events and actions, actual results could differ from these estimates.

Estimates are underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimate is recognized prospectively in the current and future period.

c) Tangible Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

ii) Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalized as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably. Other borrowing costs are recognized as an expense in the period in which they are incurred.

d) Depreciation

Depreciation is provided using the Straight Line Method as per the rates prescribed under Schedule II of the Companies Act, 2013 is as follows:-

e) Inventories

i) Inventories are valued at the lower of cost and net realizable value.

ii) Cost includes all direct costs and applicable production overheads in the case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition. Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are valued at lower of weighted average cost and net realizable value.

iv) Finished Goods are valued at lower of cost and net realizable value.

f) Impairment

a. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g) Leases

1) Leases where the less or, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

2) Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Profit and Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

3) The Company has taken certain premises under Operating Leases, which expire at various dates in future years and renewable for further period at the option of the Company. There are no restrictions imposed by the lease arrangements. The minimum lease rentals to be paid in respect of these leases are as follows:

h) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

i) Revenue Recognition

Revenue is recognized to the extent of probable economic benefits that will flow to the Company and the revenue can be reliably measured.

Sales Income

Income from sales is booked based on agreements/ arrangements with the concerned parties or as and when revenue can be reliably measured.

Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

j) Foreign Currency Translation

Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or after 7^th December 2006, arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset.

Exchange differences arising on the settlement of monetary items are not covered above; or on reporting company''s monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

k) Retirement and other employee benefits

a. Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective fund are due. There are no other obligations other than the contribution payable to the respective fund.

b. Upto the 31^st March 2010 Gratuity has been accounted on payment basis. With effect from the financial year 2010-11, the above procedure has been changed and a Master policy has been taken with the LIC of India and the premium is debited to the annual P&L account every year. The settlement of gratuity is done by the LIC of India. The above accounting policy is in line with AS 15.

1) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortized during the year as per the requirement of AS-26, issued by ICAI.

m) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

n) Segment Reporting Policies

The Company primarily operates in a single business segment, ''Manufacturing of Invitation Cards'', within India and hence does not require any separate segment reporting policies.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

q) Cash and Cash equivalents

a. Cash and cash equivalents in the balance sheet comprise of cash at bank and Cash in hand Rs,70,86,301/-

---

Mar 31, 2015

A) Basis of Preparation

The financial statements have been prepared and presented accordance with the generally accepted accounting principal in India (Indian GAAP) under the historical cost convention on an accrual basis. The Company has prepared these financial statements to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular 15/2013 dated 13th September, 2013, issued by Ministry of Corporate Affair in respect of section 133 of the Companies Act, 2013

The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

Estimates are underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimate is recognized prospectively in the current and future period.

c) Tangible Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

ii) Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalized as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably. Other borrowing costs are recognized as an expense in the period in which they are incurred.

d) Depreciation

Depreciation is provided using the Straight Line Method as per the rates prescribed under Schedule II of the CompaniesAct,2013 is as follows:-

e) Inventories

i) Inventories are valued at the lower of cost and net realizable value.

ii) Cost includes all direct costs and applicable production overheads in the case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition. Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are valued at lower of weighted average cost and net realizable value.

iv) Finished Goods are valued at lower of cost and net realizable value.

f) Impairment

a. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g) Leases

1) Leases where the lessor, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

2) Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Profit and Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

3) The Company has taken certain premises under Operating Leases, which expire at various dates in future years and renewable for further period at the option of the Company. There are no restrictions imposed by the lease arrangements. The minimum lease rentals to be paid in respect of these leases are as follows:

h) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

i) Revenue Recognition

Revenue is recognized to the extent of probable economic benefits that will flow to the Company and the revenue can be reliably measured. Sales Income Income from sales is booked based on agreements/arrangements with the concerned parties or as and when revenue can be reliably measured.

Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

j) Foreign Currency Translation initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Conversion Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or after 7th December 2006, arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset.

Exchange differences arising on the settlement of monetary items are not covered above; or on reporting company's monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

k) Retirement and other employee benefits

a. Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective fund are due. There are no other obligations other than the contribution payable to the respective fund.

b. Upto the 31st March 2010Gratuity has been accounted on payment basis. With effect from the financial year 2010-11, the above procedure has been changed and a Master policy has been taken with the LIC of India and the premium is debited to the annual P&L account every year. The settlement of gratuity is done by the LIC of India. The above accounting policy is in line with AS 15.

I) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortized during the year as per the requirement of AS-26, issued by ICAI.

m) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlieryears

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

n) Segment Reporting Policies

The Company primarily operates in a single business segment, 'Manufacturing of Invitation Cards', within India and hence does not require any separate segment reporting policies.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

q) Cash and Cash equivalents

a. Cash and cash equivalents in the balance sheet comprise of cash at bank and Cash in hand Rs. 26,37,017/-

b. Cash and cash equivalents comprises of bank deposits given for bank & others amounting to Rs. 24,16,615/- that are not available for use by it

---

Mar 31, 2014

Olympic Cards Limited, ''the Company'', was incorporated on 21st April 1992 in Chennai. Prior to the incorporation of the Company, the promoters were in the Printing Industry for 46 years. The Company is the leading Manufacturer and Supplier of Invitation cards in India. The Company had successfully came out with a public issue in the month of March 2012.

a) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

ii) Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalised as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

d) Depreciation

Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management, or at the rates prescribed under Schedule XIV of the Companies Act, 1956 whichever is higher, as follows:-

Assets individually costing Rs. 5,000/- or less are fully depreciated in the year of purchase.

e) Inventories

i) Inventories are valued at the lower of cost and net realisable value.

ii) Cost includes all direct costs and applicable production overheads in the case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition. Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are valued at lower of weighted average cost and net realisable value.

iv) Finished Goods are valued at lower of cost and net realizable value.

f) Impairment

a. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g) Leases

1) . Leases where the lessor, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

2) Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Profit and Loss Account on a straight line basis over the lease term.

Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

3) . The Company has taken certain premises under Operating Leases, which expire at various dates in future years and renewable for further period at the option of the Company. There are no restrictions imposed by the lease arrangements. The minimum lease rentals to be paid in respect of these leases are as follows:

h) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

i) Revenue Recognition

Revenue is recognized to the extent of probable economic benefits that will flow to the Company and the revenue can be reliably measured.

Sales Income

Income from sales is booked based on agreements/arrangements with the concerned parties or as and when revenue can be reliably measured.

Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

j) Foreign Currency Translation Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or after 7th December 2006, arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset.

Exchange differences arising on the settlement of monetary items are not covered above; or on reporting company''s monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

k) Retirement and other employee benefits

a. Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective fund are due- There are no other obligations other than the contribution payable to the respective fund.

b. Up to the 31st March 2010 Grautity has been accounted on payment basis. With effect from the financial year 2010-11, the above procedure has been changed and a Master policy has been taken

with the LIC of India and the premium is debited to the annual P&L account every year. The settlement of gratuity is done by the LIC of India.

c. The company has adopted the above new accounting policy with effect from 01.04.2010 and there was no retirement for the above period. The above accounting policy is in line with AS 15.

d. Short term compensated absences are provided for based on estimates.

e. Actuarial gains/loses are immediately taken to the profit & loss account and are not deferred.

l) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortised during the year as per the requirement of AS-26, issued by ICAI.

m) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

n) Segment Reporting Policies

The Company primarily operates in a single business segment, ''Manufacturing of Invitation Cards'', within India and hence does not require any separate segment reporting policies.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

q) Cash and Cash equivalents

a. Cash and cash equivalents in the balance sheet comprise of cash at bank and Cah in hand Rs. 55,93,852/-

b. Cash and cash equivalents comprises of bank guarantees & others amounting to Rs.18,31,359/- that are not available for use by it.

c. Cash and cash equivalents comprises of Funds received from lPO bank Deposits Rs.3,34,18,148/-

---

Mar 31, 2013

Olympic Cards Limited, ''the Company'', was incorporated on 21st April 1992 in Chennai. Prior to the incorporation of the Company, the promoters were in the Printing Industry for 46 years. The Company is the leading Manufacturer and Supplier of Invitation cards in India. The Company has successfully come out with a public issue in the month of March 2012.

a) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

ii) Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalised as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

d) Depreciation

Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management, or at the rates prescribed under Schedule XIV of the Companies Act, 1956 whichever is higher, as follows:-

Assets individually costing Rs. 5,000/- or less are fully depreciated in the year of purchase.

e) Inventories

i) Inventories are valued at the lower of cost and net realisable value.

ii) Cost includes all direct costs and applicable production overheads in the case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition. Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are valued at lower of weighted average cost and net realisable value.

iv) Finished Goods are valued at lower of cost and net realizable value.

0 Impairment

a. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g) Leases

1). Leases where the lessor, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified at operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

2). Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Profit and Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

3). The Company has taken certain premises under Operating Leases, which expire at various dates in future years and renewable for further period at the option of the Company. There are no restrictions imposed by the lease arrangements. The minimum lease rentals to be paid in respect of these leases are as follows:

h) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sales Income

Income from sales is booked based on agreements/arrangements with the concerned parties or as and when revenue can be reliably measured.

Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

j) Foreign Currency Translation

Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or after 7th December 2006, arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset.

Exchange differences arising on the settlement of monetary items are not covered above; or on reporting company''s monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

k) Retirement and other employee benefits

a. Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective fund are due- There are no other obligations other than the contribution payable to the respective fund.

b. Up to the 31st March 2010 Grautity has been accounted on payment basis. With effect from the financial year 2010-11, the above procedure has been changed and a Master policy has been taken with the LIC of India and the premium is debited to the annual P&L account every year. The settlement of gratuity is done by the LIC of India.

c. The company has adopted the above new accounting policy with effect from 01.04.2010 and there was no retirement for the above period. The above accounting policy is in line with AS 15.

d. Short term compensated absences are provided for based on estimates.

e. Actuarial gains/loses are immediately taken to the profit & loss account and are not deferred.

I) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortised during the year as per the requirement of AS-26, issued by ICAI.

m) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

n) Segment Reporting Policies

The Company primarily operates in a single business segment, ''Manufacturing of Invitation Cards'', within India and hence does not require any separate segment reporting policies.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

q) Cash and Cash equivalents

a. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand.

b. Cash and cash equivalents comprises of bank guarantees & others amounting to " Rs. 1,776,009/- that are not available for use by it.

c. Cash and cash equivalents comprises of Funds received from IPO bank Deposits " Rs.166,253,109/-

---

Mar 31, 2012

Olympic Cards Limited the Company, was incorporated on 21st April, 1932 in Chennai. Prior to the incorporation of the Company, the promoters were In the Printing Industry for 46 years. The Company is the leading Manufacturer and Supplier of Inflation cards in India The Company has successfully come out with a public issue in the month at torch 2012.

a) Bests of Preparation

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis The accounting policies applied by the Company are consistent with those used In the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requites management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment basis. If any, Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

ii) Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalised as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably Other borrowing costs are recognised as an expense in the period in which they are incurred.

a) Inventories

i) Inventories are valued at the lower of cost and net realisable value

ii) Cost includes all direct costs and applicable production overheads in the case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are valued at lower of weighted average cost and net realisable value,

iv) Finished Goods are valued at lower of cost and net realizable value.

b) Impairment

a. The carrying amounts of assets are reviewed at each balance sheet dale if there is any indication a impairment based on internal / external factors An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing the value In use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset ever its remaining useful life.

c) Leases

1). Leases where the lessor, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified at operating leases. Operating lease payment; are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

2) Assets subject to operating leases are Included in fixed assets Lease Income is recognized in the Profit and Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognised immediately in the Profit and Loss Account.

a) Investments

Investments that are really realizable and intended to be held for ml more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are earned at lower of cost and fair value determined on an individual investment basis Long-term investment are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

b) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits nil flow to the Company and the revenue can be reliably measured.

Income from sales is booked based on agreements/arrangements with the concerned parties or as and when revenue can be reliably measured.

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Foreign Currency Translation

Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the dale of the transaction.

Conversion

Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or alter similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or alter 7th December 2006, arising on reporting of long term foreign currency monetary items, at rates Afferent from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated ever the balance lie of the asset.

Exchange differences arising on the settlement of monetary items are not covered above: or on reporting company's monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

d) Retirement and other employee benefits

a) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss; Account of the year when the contributions to the respective fund are due - There are no other obligations other than the contribution payable to the respective fund

a. Up to the 31st March, 2010 Gratuity has been accounted on payment basis. With effect from the financial year 2010-11. the above procedure has been changed and a Master policy has been taken with the LIC of India and the premium is debited to the annual P&L account every year. The settlement of gratuity is done by the LIC of India.

b. The company has adopted the above new accounting policy with effect from 01.04.2010 and there was no retirement for the above period. The company has paid an amount of Rs. 68,477/- to LIC of (note for covering the employees for the Gratuity payable by the company. The above accounting policy is inline with AS 15.

c. Short term compensated absences are provided for based on estimates.

d. Actuarial gain/losses are immediately taken to the profit & loss account and are not deferred.

b) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortised during the year as per the requirement of AS-26, issued by ICAI.

c) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income lax and fringe benefit fax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred Income taxes reflects the Impact of current year timing differences between taxable Income and accounting income for the year and reversal of timing differences of earlier years

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extern (hat there Is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

d) Segment Reporting Policies

The Company primarily operates in a single business segment 'Manufacturing of Invitation Cards', within India and hence does not require any separate segment reporting policies.

e) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period ate adjusted for the effects of all dilutive potential equity shares.

a) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation. In respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet dale. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

b) Cash and Cash equivalents

a. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand.

b. Cash and cash equivalents comprises of bank guarantees & others amounting to Rs. 16,54,245/- that are not available for use by it.

c. Cash and cash equivalents comprises of Funds received from IPO bank Deposits Rs. 21,51,00,000/-

---

Mar 31, 2010

A) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standard by the Companies (Accounting Standards)

Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous years.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets

i) Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

ii) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time to get ready for its intended use are capitalized as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably. Other

borrowing costs are recognized as an expense in the period in which they are incurred.

d) Depreciation

Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management, or at the rates prescribed under Schedule XIV of the Companies Act, 1956 whichever is higher, as follows:-

Assets individually costing Rs.5,000 or less are fully depreciated in the year of purchase.

e) Inventories

i) Inventories are valued at the lower of cost and net realizable value.

ii) Cost includes all direct costs and applicable production overheads in the

case of finished goods and work in progress, incurred in bringing such inventories to their present location and condition. Cost also includes all taxes and duties, but excludes duties and taxes that are subsequently recoverable from taxing authorities.

iii) Raw materials, bought out items, consumables and stores and spares are

valued at lower of weighted average cost and net realizable value.

iv) Finished Goods are valued at lower of cost and net realizable value.

f) Impairment

i. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

ii. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g) Leases

Leases where the less or, effectively retains substantially all the risks and benefits of ownership of the leased item, are classified at operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term.

Assets subject to operating leases are included in fixed assets! Lease income is recognized in the Profit and Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Profit and Loss. Initial Direct Costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

h) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments

i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sales Income

Income from sale of Invitation cards is booked based on agreements/arrangements with the concerned parties.

Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

j) Foreign Currency Translation

Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign Currency monetary items are reported using the closing rate. Non- monetary items which are carried in terms of historical cost, denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences, in respect of accounting periods commencing on or after 7th December 2006, arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset. Exchange differences arising on the settlement of monetary items are not covered above; or on reporting company's monetary items, at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

k) Retirement and other employee benefits

i. Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective fund are due- There are no other obligations other than the contribution payable to the respective fund

ii. Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year.

iii. Short term compensated absences are provided for based on estimates.

iv. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

l) Miscellaneous Expenditure

Deferred Revenue Expenses & Preliminary Expenses incurred have been amortized fully during the year as per requirement of AS-26, issued by ICAI.

m) Income Taxes

Tax expense comprises current tax, deferred tax and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

n) Segment Reporting Policies

The Company primarily operates in a single business segment, 'Manufacturing of Invitation Cards', within India and hence does not require any separate segment reporting policies.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

q) Cash and Cash equivalents

i. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand.

ii. Cash and cash equivalents comprises of bank guarantees & others amounting to Rs.55,79,137/- that are not available for use by it.