50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
118
net assets of Rs. 10,33,37,817/- as at 31 March 2016, total
revenue from activities in pursuance of the objects of Rs.
3,07,43,758/-,
Other Income of Rs.
40,51,923/-
net
surplus
of Rs. 62,19,169/- and net cash inflows amounting to Rs.
2,01,14,169/- for the year ended on that date, as considered
in the consolidated financial statements.
Thesefinancial statementshavebeenauditedbyother auditors
whose reports have been furnished to us by the Management,
and our opinion on the consolidated financial statements in
so far as it relates to the amounts and disclosures included
in respect of these subsidiaries and associate company and
units/divisions and our report in terms of sub-section (3) and
(11) of section 143 of the Act in so far as it relates to the
aforesaid units, subsidiaries and associate company, is based
solely on the reports of the other auditors.
Basis for Qualified Opinion
9. According to the information and explanations given and
based on audit conducted by the Statutory Auditors of Indian
Institute of Gems & Jewellery, Delhi, a subsidiary, (hereinafter
referred to as “IIGJ, Delhi”), the following material weakness
has been identified and reported by these Statutory Auditors
in the operating effectiveness of the subsidiary’s internal
financial control over financial reporting as at 31
st
March,
2016:
“The subsidiary’s internal financial control over cash
receipt of fee from students and reporting thereof, were not
operating effectively resulting into misappropriation of funds
by an employee. The management traced, identified the
misappropriation and provided for the amount involved, in
the financial statements during the year.
A ‘material weakness’ is a deficiency, or a combination
of deficiencies, in internal financial control over financial
reporting, such that there is a reasonable possibility that a
material misstatement of the company’s annual or interim
financial statements will not be prevented or detected on a
timely basis.”
Qualified Opinion:
10. In our opinion and to the best of our information and
explanation given to us, except for the effects of the matter
described in the Basis for Qualified Opinion in paragraph (9)
above, the Council has, in all material respects, an adequate
internal financial controls system over financial reporting and
such internal financial controls over financial reporting were
operating effectively as at 31
st
March, 2016, based on the
internal control over financial reporting criteria established by
the Council considering the essential components of internal
control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For and on behalf of
AMJ & CO
Chartered Accountants
Firm Registration Number: 128550W
Sd/-
(A.K.JHUNJHUNWALA)
Partner
Membership Number: 011778
Place:
Mumbai
Dated: 08.11.2016
