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ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
122
1. CORPORATE INFORMATION :
The Gem & Jewellery Export Promotion Council (hereinafter
referred to as “the Council”, “the Holding Company”) was set
up by the Ministry of Commerce and Industry Government on
India, in 1966. It is a company incorporated under Section 25
of the Companies Act, 1956 (superseded by Section 8 of the
Companies Act, 2013). The Council is also registered under
Section 12A of the Income Tax Act, 1961 as a ‘Charitable
Institution”. The Council’s primary objective is to promote and
thereby enhance exports of gems and jewellery from India.
The other functions of the Council are:
•
To provide guidance and information to members.
•
To liaise between the trade and government on issues
pertaining to the industry.
•
To advise the Indian Government on matters pertaining
to the industry.
•
To provide training and Research & Development sup-
port for the development of the trade.
•
To facilitate contacts between Indian and foreign busi-
nessmen.
In order to fulfill its objectives, the Council undertakes
various activities, which can be broadly divided into four
categories:
•
Trade Facilitator
•
Advisory Role
•
Human Resource Development
•
Nodal Agency for Kimberley Process Certification
Scheme
These Consolidated Financial statements comprise the
financial statement of the Holding Company and its following
subsidiaries and associate:
A. Subsidiaries:
Indian Institute of Gems & Jewellery (IIGJ), Mumbai
Indian Institute of Gems & Jewellery (IIGJ), Jaipur
Indian Institute of Gems & Jewellery (IIGJ), Delhi
Indian Institute of Gems & Jewellery (IIGJ), Kolkatta
Gem & Jewellery KYC Information Centre (GJKYC), Mumbai
B. Associates
India Diamond Trading Centre (IDTC)
Gem & Jewellery Skill Council of India
The above referred Subsidiaries and Associates have been
incorporated under section 25 of the Companies Act, 1956
(superseded by Section 8 of the Companies Act, 2013.)
These Subsidiaries and Associate have also been registered
under section 12A of the Income Tax Act, 1961 as a charitable
institution except in the case of Indian Institute of Gems &
Jewellery (IIGJ), Delhi, Gem & Jewellery KYC Information
Centre and India Diamond Trading Centre, as explained
hereinafter.
2. SIGNIFICANT ACCOUNTING POLICIES:
General:
These financial statements have been prepared in accordance
with the accounting principles generally accepted in India
including the Accounting Standards specified under Section
133 of the Companies Act, 2013 (the Act )read with Rule 7 of
the Companies (Accounts) Rules, 2014.
(ii) The accounts have been prepared under the historical
cost convention. These costs are not adjusted to reflect the
impact of changing value in the purchasing power of money.
(iii) Expenses and Income to the extent considered payable
and receivable respectively are accounted for on accrual
basis except as under:
(a) The Gratuity Liability is accounted for in the year the
employee retires/resigns and gratuity is paid in case of the
following subsidiaries:
Indian Institute of Gems & Jewellery (IIGJ), Mumbai;
Indian Institute of Gems & Jewellery (IIGJ), Jaipur.
(b) Leave Encashment payable to employees is accounted
as and when paid in case of Indian Institute of Gems &
Jewellery (IIGJ), Jaipur.
(iV) Income and expenses related to exhibitions are
recognized in the Income and Expenditure Account of the
year in which related exhibitions are held.
(V) All Assets and Liabilities have been classified as Current
or Non-Current as per criteria set out in the Schedule III to the
Companies Act, 2013.
(Vi) The accounting policies of the Holding Company (parent)
are best viewed in its independent standalone financial
statements, Note 1. Differences in accounting policies followed
by the other entities consolidated have been reviewed and
no adjustments have been made, since the impact of these
differences is considered to be not significant.
THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL & ITS SUBSIDIARIES
( COMPANIES LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL )
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
