1.  Basis of preparation of Financial Statements
 
 The Financial Statements are prepared under the historical cost
 convention in conformity with the mandatory Accounting Standards and
 the provisions of the Companies Act, 1956, as amended and adopted
 consistently by the Company.
 
 Advertisement, Postage, Packing & Forwarding and Business Promotion
 expenses are shown at net figures after reducing the recovered amounts.
 
 2.  Revenue Recognition
 
 Revenue from sale of goods/job work is recognised when the sales/job
 work has been completed with the passing of title and are recorded net
 of returns, trade discounts, rebates, sales tax and excise duty.
 
 Interest income is recognised on proportionate basis inclusive of tax
 deducted at source thereof.
 
 Royalties accrue in accordance with the terms of the relevant agreement
 and are recognised on that basis.
 
 Dividend Income Is recognised when the right to receive dividend is
 established.
 
 3.  Fixed Assets
 
 Fixed assets are stated at cost of acquisition and subsequent
 improvements thereto including borrowing costs, tax, duties, freight
 and other incidental expenses related to acquisition and installation.
 
 The Company capitalizes assets taken on Finance Lease, in accordance
 with the Accounting Standard 19 (Accounting For Leases) issued by the
 Institute of Charted Accountants of India.
 
 4.  Depreciation
 
 Depreciation is provided on straight-line method at the rates and in
 the manner prescribed in Schedule XIV to the Companies Act, 1956.
 Individual assets costing upto Rs. 5000/- are depreciated in the year
 of purchase.
 
 5.  Inventories
 
 i) Finished Goods, Work-in-Progress and Raw Materials are Valued at
 lower of cost and net realisable value.
 
 ii) Other Misc. Items are valued at cost.
 
 iii) The valuation of inventory is being done based on FIFO (First in
 First Out) method.
 
 The finished goods, which are not saleable, are categorised as dead
 stock, which are taken and valued at net realisable value. The Company
 has consistently followed this method of valuation of inventory.
 
 6.  Retirement Benefits
 
 I) Leave encashment is being given to the employees every year in the
 month of April while retaining upto 30 days Credit. Unpaid leave upto
 30 days is charged to Profit & Loss Account on the basis of actuarial
 valuation. Leave beyond 30 days is recognised on accrual basis as short
 term leave.
 
 ii) Contributions are made by the company to the Provident Fund on a
 monthly basis and charged to Profit and Loss Account
 
 iii) Gratuity due to employees is covered by the Group Gratuity Policy
 under Cash Accumulation Scheme of Life Insurance Corporation of India
 (LIC).The contributions in respect of such scheme, based on the advices
 received from LIC are made to the Gratuity Fund Trust. The liability
 towards gratuity is provided on the basis of actuarial valuation
 carried out by an independent Actuary in accordance with the Accounting
 Standard 15 (Revised).
 
 7.  Foreign Exchange Transactions
 
 I) Transactions In foreign currency are accounted at the exchange rate
 prevailing at the time of transaction.
 
 ii) Outstanding monetary items denominated in foreign currency are
 translated at the year-end exchange rates.
 
 iii) Any gain or Loss on account of exchange differences is charged to
 the Profit & Loss Account.
 
 iv) The premium or discount arising on forward contracts is amortised
 as expense or income over the life of the contract Exchange differences
 on such contracts are recognised in the statement of profit and loss In
 the year In which the exchange rate changes. Any profit or loss arising
 on cancellation or renewal of forward exchange contract is recognised
 as income or expense for the year.
 
 v) The profit/loss on foreign exchange derivative transactions is
 recognised in the year in which the transaction matures.
 
 vi) In view of notification dated 31.03.09 amending AS-11, the capital
 cost of respective fixed assets are adjusted for increase or decease in
 liabilities incurred for the purpose of acquiring such fixed assets due
 to application of exchange rate prevailing at the Balance Sheet date.
 
 8.  Miscellaneous Expenditure
 
 Miscellaneous Expenditure is written off in accounting period in which
 incurred.
 
 9.  Branch Accounting
 
 Stock is being transferred to the branches at a Mark-up to the Cost
 Price and Is valued accordingly by the Branch but at the time of
 consolidation, the same is valued at as per valuation basis adopted by
 the Company.
 
 10.  Investments
 
 (i) Long Term Investments
 
 Long-term investments are carried at cost and provision for diminution
 in value Is made only if such decline is other than temporary in the
 opinion of the Management.
 
 (ii) Current Investments
 
 Current Investments are stated at lower of cost and fair Value.
 
 11.  Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.
 
 Deferred tax is recognised, on timing differences, being the difference
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 
 Deferred tax asset in respect of unabsorbed depreciation and
 Carry forward of losses, if any, are recognised if there is virtual
 certainty that there will be sufficient future taxable income available
 to realise such losses.
 
 12.  Segment Reporting
 
 (i) Primary Segment
 
 The company operates in three primary business Segments-Greeting Cards,
 Stationery and Gifts.
 
 (ii) Secondary Segment
 
 The company has operations within India as well as entities located in
 other countries. Its reportable segment Is based on geographical
 location of its customers.
 
 13.  Lease
 
 Operating lease payments are recognised as an expense in the profit and
 loss account as per the terms of the agreements which are
 representative of the time pattern of the user''s benefit.
 
 14.  Impairment of Assets
 
 At each balance sheet date, the company assesses whether there is any
 indication that an asset may be Impaired. If any such indication
 exists, the company estimates the recoverable amount. If the carrying
 amount of the asset exceeds it recoverable amount, an impairment loss
 is recognised in profit and loss account to the extent the carrying
 amount exceeds the recoverable amount.