ARCHIES Share price

Archies a partnership firm was established in 1979 between Sh. Anil Moolchandani and Sh. Girdhari Lal. In 1980 Sh. Girdhari Lal retired and Sh. Jagdish Moolchandani joined the firm as a partner. The firm was carrying on the business of manufacturing and marketing of greeting cards gifts and other stationery items till 30/06/90 the date onwhich it was taken over by Archies Greetings and Gift''s (P) Ltd which was incorporated on 22.05.1990. Subsequently the company was converted into a public limited company and a fresh certificate of incorporation was issued by the Registrar of Companies NCT of Delhi & Haryana on 7th April 1995.M/s. Archies a partnership firm was carrying on the business of manufacturing and marketing greeting cards till 30/06/1990 the date on which it was taken over by Archies Greetings & Gifts Pvt. Ltd. vide an agreement between the two parties dated 29/06/1990. As per theagreement the consideration for the transfer of the business was the amount outstanding in the capital account of the partners as per their balance sheet dated 30/06/1990 to be satisfied by the issue of fully paid equity shares at par to the value of the aforesaid sum in the capital of the company. There has been no revaluation of assets of M/s. Archies in the preceding 3 years before its takeover. The company followed prudent business norms while taking over the said firm. The basis of arriving at the cost of acquisition is as under:Particular BasisFixed assets Book valueSecurity deposit Book valueCurrent assets Book valueLoans & advances Book valueCash in hand Book valueClosing stock Book valueLess:Unsecured loans Book valueSundry creditors Book valueTDS Book valueProvisions & expenses Book valueBank borrowings Book valueSales tax payable Book value Particular Amount (in Rs.)Fixed assets 1893459.00Security deposit 324000.00Current assets 6159601.77Loans & advances 8000.00Cash in hand 641.62Closing stock 6043838.36 14429540.75Less:Unsecured loans 1260422.32Sundry creditors 12326020.46TDS 799.00Provisions & expenses 133383.00Bank borrowings 374456.24Sales tax payable 120174.05 14215255.07Amount standing in partners'' capital account 214285.68The partners were issued 21428 equity shares of Rs.10 each for cash at par in consideration of takeover for the partnership firm by the company.The Company has been promoted by Sh. Anil Moolchandani and Sh. Jagdish Moolchandani who are also the first directors of the company.Archies Greetings and Gifts Ltd. is currently engaged in the manufacture and trading of a wide range of cards stationery and gift items. The brand name "Archies" is registered with Trade Mark Registry Bombay under No. 405882 in Part B of the Register since 23/5/1983 and the same is in force for a period of seven years from23/5/90 upon renewal.The company has entered into a technical collaboration with American Greetings Corp. U.S.A. for designs a Fortune 500 company and the world''s largest publicly owned manufacturer and distributor of greeting cards. Impressed by the quality reputation and brand image of items produced by Archies American Greetings Corp. chose Archies forproduction of their designs in India. American Greetings Corp. supplies its designs and artwork of greeting cards posters and other items to Archies which after selecting the designs according to Indian taste produces these items in India and sells the same under the brand name of "Paper Rose". Archies has also entered into a technical collaboration with Gibson Greetings Inc. USA the world''s oldest greeting card company and ranked third in the world for production and marketing of their designs in India. Archies sells the designs of Gibson in India under the brand name of "Fine Expressions".Archies has a licence from Helpage India an institution that cares for the less privileged and elderly people. Archies creates an exclusive range of greeting cards every year in the name of Helpage India.Archies is operating from 6 premises situated at Naraina Industrial Area New Delhi. The company''s existing setup consists of advanced sophisticated and fully automatic machines including four Heidelberg five colour offset printing machines. Various ancillary equipment arealso being used in the cutting binding and packing departments. The promoters and the key management personnel are actively associated in creating new styles and designs of cards and other gift items.The company''s product has a very strong market presence and immense brand equity. As detailed elsewhere in the prospectus the company has a complete marketing network with distributors and franchisees appointed all over the country as well as abroad.The company has not faced any instance of labour problem or lock out.