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Accounting Policies of Olympic Cards Ltd. Company
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 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 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 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 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 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 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.
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More Information on Olympic Cards Ltd.
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Olympic Cards Ltd. Tools
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Olympic Cards Ltd. Company Details
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Olympic Cards Ltd. Key Financial Ratios
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Olympic Cards Ltd. Results
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Olympic Cards Ltd. Financial Data
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Olympic Cards Ltd. Reports
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Olympic Cards Ltd. Corporate Announcements
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