To The Members,
 
 The Directors have great pleasure in presenting Twenty First Annual
 Report of the Company together with the Audited Annual Accounts for the
 year ended 31st March, 2011.
 
 FINANCIAL HIGHLIGHTS
 
                                                     FOR THE YEAR ENDED
 
                                                          (Rs. In Lacs)
 
                                       31st March 2011   31st March 2010
 
 Net Sales                                  18807.18         15621.05
 
 Other Income                                 152.80            82.09
 
 Total Expenditure                          16716.89         13906.72
 
 Operating Profit (PBDIT)                    2243.09          1796.42
 
 Interest                                     188.41           132.37
 
 Depreciation                                 453.26           326.42
 
 Profit before Tax (PBT)                     1601.42          1337.63
 Provision for taxation
 
 Current                                      495.20           433.00
 
 Deferred                                      23.48            24.42
 
 Net Profit / (Loss) (PAT)                   1082.74           880.21
 
 APPROPRIATIONS
 
 Transfer to General Reserve                  150.00           100.00
 
 Final Dividend (Proposed)                    135.12           135.12
 
 Tax on Dividend                               21.92            22.96
 
 Profit carried to Balance Sheet              775.70           622.13
 
 
 PERFORMANCE REVIEW
 
 During the year under review your Company recorded a turnover of Rs.
 18807.18 lacs as compared to Rs. 15621.05 lacs in the previous
 financial year, up by 20.40%. The Net Profit for the same period stands
 at Rs. 1082.74 lacs as against Net profit of Rs. 880.21 lacs in the
 previous year up by 23.01 %.
 
 The sale of greeting cards during the current year stands at Rs.
 5165.02 lacs (in value) and 280.39 lacs Nos.  (in volume) as against
 Rs. 4610.30 lacs (in value) and 309.64 lacs Nos. (in volume) in the
 previous year, which is up by 12.03%.
 
 The gifts sale has increased to Rs. 11276.12 lacs as compared to Rs.
 9004.40 lacs in the previous year, which is up by 25.23%.  The turnover
 of the company has increased due to the following factors.
 
 The Turnover of the Gift segment is Rs. 11276.12 lacs as compared to Rs.
 9004.40 lacs previous year, up by 25.23%.
 
 The Turnover of the Greeting card segment is Rs. 5165.02 lacs as
 compared to Rs. 4610.30 lacs previous year, up by 12.03%.
 
 The stationery sale is Rs. 2230.37 lacs as compared to Rs. 1883.13 lacs
 in the previous year, up by 18.44%.
 
 The Company owned / managed stores have significantly contributed
 towards the growth of turnover and the profits.
 
 TIE UPS
 
 The company has entered into a license agreement with Hallmark Cards
 Inc the  billion global market leader in Social Expressions to bring
 exclusive Hallmark retail outlets across the country. The company plans
 to create a similar chain of Hallmark stores (as in the United States)
 all across India. These stores will retail exclusive Hallmark products,
 including cards, stationery and gifts, including the powerful and
 synergetic brands like Crayola art products, the William Arthur range
 of luxury stationery, and merchandise of world famous characters like
 Snoopy & Garfield among others.  Hallmark, has over 40,000 retail
 stores and 3,200 Hallmark Gold Crown stores in the USA alone.
 Headquartered in Kansas City, Hallmark has completed over 100 years in
 the business and has grown from its humble beginnings to becoming a
 global behemoth. It is a technology leader in the category and has many
 innovations and firsts to its credit, including sound cards. The
 current plan is for Archies to open Hallmark stores, along with the
 ongoing expansion of the Archies retial footprint.
 
 During the year Your Company has also been awarded a license by The
 Smiley Company owner of world renowned Smiley Brand and logo to produce
 a new range of gifts, accessories, plush and stationery for its Smiley
 World-Express Yourself brand.
 
 Your Company has been appointed as a licensing partner for UNICEF
 products in India. As part of the partnership Archies Ltd. will
 manufacture, retail and distribute UNICEF greeting cards and paper
 products. Royalty from these products will go to fund UNICEF''s programs
 in India.
 
 RETAIL EXPANSION PLAN
 
 During the year under review, the Company continued with its efforts to
 expand its retail outlets emphasizing more on high street shops. The
 Company made efforts to boost sales through different schemes and
 campaigns. The Company opened total 48 retail stores and closed 8 non
 performer stores during the year. As on 31st March, 2011 the number of
 company owned/managed stores were 200. Your Company has plans to open
 50 more stores during the year 2011-12 Including Hallmark Stores.
 
 DIVIDEND
 
 Your Directors recommend a dividend of 20% equivalent to Rs. 0.40/- on
 each fully paid-up equity share face value of Rs. 21- for the year
 ended 31 st March, 2011. The dividend will entail an outflow of Rs.
 135.12 Lacs excluding taxes. The dividend, in the opinion of the Board
 represents a prudent balance between the need for the Company to reward
 its shareholders as well as the need to plough back the profits for the
 Company''s own requirements.
 
 SPLITING OF EQUITY SHARES
 
 The shareholders at the Annual General Meeting held on 30th September
 2010 approved the split of each equity share of the face value of Rs.
 10/- each into 5 equity shares of face value of Rs. 21- each on the
 recommendation of Board of Directors and the shares of the Company were
 split on 3rd November, 2010, record date fixed for the purpose.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS & OUTGO
 
 The information as required under section 217 (1)(e) of the Companies
 Act, 1956, read with the Companies (Disclosure of Particulars in the
 Report of Board of Directors) Rules, 1988 are given in Annexure''A''to
 the Directors'' Report.
 
 PARTICULARS OF EMPLOYEES
 
 None of the Employees drew salary more than Rs. 5,00,000/- per month or
 Rs. 60,00,000/- in a year as required under the provisions of Section
 217 (2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employees) Rules, 1975.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, and the
 Articles of Association of the company, Mr.  Arun Singhal and Mr.
 Vijayant Chhabra retire by rotation at the ensuing Annual General
 Meeting and being eligible, offer themselves for re-appointment.
 
 AUDITORS
 
 M/s Uberoi Sood and Kapoor, Chartered Accountants, the Statutory
 Auditors of the company retire at the conclusion of the ensuing Annual
 General Meeting of the company and have confirmed their eligibility and
 willingness to accept the office of the auditors, if re-appointed.
 
 PUBLIC DEPOSITS
 
 During the year, your Company has not accepted and/or renewed any
 public deposits in terms of the provisions of Section 58A of the
 Companies Act, 1956 read with the Companies (Acceptance of Deposit)
 Rules, 1975. No Public Deposits were pending for repayment.
 
 INDUSTRIAL RELATIONS
 
 The relations between the Company and its employees continued to be
 cordial and harmonious throughout the year under review.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 To the best of the knowledge and belief and according to the
 information and explanation obtained, your Directors make the following
 statements in terms of section 217(2AA) of the Companies (Amendment)
 Act, 2000:
 
 (i) That in the preparation of the annual accounts for the year ended
 31st March 2011, the applicable Accounting Standards have been
 followed, along with proper explanation relating to material
 departures, if any;
 
 (ii) That such accounting policies as mentioned in the Notes to
 Accounts, have been selected and applied consistently and judgments and
 estimates have been made that are reasonable and prudent, so as to give
 a true and fair view of the state of affairs of the Company as at 31st
 March, 2011 and of the profit or loss of the Company for the year ended
 on that date;
 
 (iii) That proper and sufficient care has been taken for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities; and
 
 (iv) That the annual accounts have been prepared on a going concern
 basis.
 
 CORPORATE GOVERNANCE
 
 As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
 separate section on Corporate Governance and Management Discussion and
 Analysis Report together with a certificate from the Company''s Auditors
 confirming compliance is set out in the annexure forming part of this
 report.
 
 In compliance with the new Corporate Governance requirements, the
 Company has implemented a Code of Conduct for all its Board Members and
 Senior Management Personnel, who have affirmed compliance thereto.The
 said Code of Conduct has been posted on the Company''s website.
 
 AUDITORS''REPORT
 
 The auditors in their report have made remarks relating to the
 utilization of funds raised on short term basis for long term
 investment. Your directors wish to explain that the company has during
 the year opened 48 new retail outlets and all the capital expenditure
 for these new outlets has been procured through internal accruals and
 in this course short term funds have also been used for the furniture
 and fixtures for these retail outlets for temporary period.
 
 ACKNOWLEDGMENT
 
 Your Directors would like to take this opportunity to express their
 sincere thanks to its valued franchisees, distributors, C & F agents,
 collaborators, bankers and all other business associates for their
 continued co-operation and patronage.
 
 The Directors would also like to express their deep sense of
 appreciation to all the employees who are committed to strong work
 ethics, excellence in performance and commendable teamwork and have
 thrived in a challenging environment. The Directors wish to express
 their gratitude to the valued shareholders for their unwavering trust
 and support.
 
                                     For and on behalf of the Board
 
 Place :  Delhi                Sd/-                           Sd/-
 
 Date  :  25th May,2011      Anil Moolchandani            Pramod Arora
 
                 Chairman-cum-Managing Director   Joint Managing Director