50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
134
23. The Holding Company holds 12,50,000 Equity Shares in
of Rs. 10/- each, fully paid-up, of The Gem & Jewellery Skill
Council of India Ltd. (GJSCI). This holding which works out to
45.45% of its share capital and as such GJSCI becomes an
“Associate” of the Holding company.
24. The Holding Company holds Guarantee to the extent of
50% in the case of India Diamond Trading Centre and as
such it becomes an “Associate” of the Holding company.
25. Notes to these consolidated financial statements are
intended to serve as a means of informative disclosure and
a guide to better understanding of the consolidated position
of the companies. Recognizing this purpose, the Company
has disclosed only such notes from the individual financial
statements, which fairly present the needed disclosures.
26. Consolidated contingent liability is same as contingent
liability of standalone Holding Company except otherwise
stated hereinafter.
Consolidated capital commitments are same as capital
commitments of standalone Holding Company.
27. Indian Institute of Gems & Jewellery, Delhi (IIGJ, Delhi):
27.1.
In the case of The Indian Institute of Gems &
Jewellery, Delhi (IIGJ, Delhi), a subsidiary of the Holding
Company, the Income-tax Appellate Tribunal, Delhi Bench
(ITAT) has allowed the appeal filed by the IIGJ, Delhi and
has directed the Director if Income-tax (Exemptions) [DIT (E)]
to examine and adjudicate the issue of grant of registration
under Section 12AA and exemption under Section 80G of the
Income-tax Act, 1961. The DIR (E) has also been directed
to provide the due opportunity of being hearing to the IIGJ,
Delhi during the adjudicating process and shall decide the
application for granting registration without being prejudiced
from the previous order of the DIT(E) rejecting such
registration / exemption. The said Order of the ITAT states
that the objects of the Institute is clearly to impart “education”
which is not hit by proviso to section 2(15) of the Act. The
DIT (E) is yet to consider and pass the necessary orders in
line with the said Order of the ITAT and the matter is pending
before him.
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
Pending the aforesaid proceedings for registration under
Section 12AA of the Income-tax Act, 1961, no provision has
been made in the accounts of IIGJ, Delhi for Income-tax.
However, the provision for Income-Tax made by IIGJ, Delhi
in earlier years in view of cancellation of registration has
been retained pending fresh adjudication of the application
for registration as discussed above.
27.2.
The IIGJ, Delhi has not obtained the Registration
under ESI.
27.3.
During the financial year under audit, the IIGJ, Delhi
has discovered that an employee of the Holding Company,
deputed with the IIGJ, Delhi who was maintaining books
of accounts, handling cash and banking transactions and
filing statutory returns of the company under various acts,
had embezzled funds amounting to Rs. 3,28,851/- (Rupees
Three Lakh Twenty Eight Thousand Eight Hundred Fifty One
only). A police complaint has been lodged in this behalf.
Pending further action and recovery, the said amount has
been debited to the account of the concerned employee
and provision has been made in the books of accounts. IIGJ
Delhi although a wholly owned subsidiary of the council is
governed by its own independent Finance & HR policies and
are not under the day to day administrative control of the
GJEPC. Employees working there or sent on assignment by
holding Company are regulated by their independent HR
and Finance policies.
27.4.
A demand has been raised for a sum of Rs.
1,75,306/- against IIGJ, Delhi, for alleged delayed payment
of Income-Tax Deducted at Source / delay in filing of Returns
of Tax Deducted at Source. Pending scrutiny and verification
of the said demand, no provision has been made in the
accounts in respect thereof.
28. The figures in respect of the previous year have been
re-grouped /re-arranged/re-classified, wherever necessary
to make them comparable.
Signatures to Note “1” to “28”
THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL & ITS SUBSIDIARIES
( COMPANIES LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL )
CONSOLIDATED STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31ST MARCH, 2016
Previous
Year
Note No.
Rupees
Rupees
I
" 17 "
1,45,67,48,417
1,39,68,73,337
II Other Income
" 18 "
14,57,83,028
12,98,78,005
III
Total Revenue (I + II)
1,60,25,31,445
1,52,67,51,342
IV Expenses :
i) Employee benefits expense
" 19 "
5,33,27,834
4,54,52,186
ii) Finance costs
" 20 "
8,72,562
16,02,421
iii) Depreciation and amortization expense
" 21 "
1,96,93,810
3,51,18,334
iv) O her expenses
" 22 "
1,17,25,42,427
1,18,94,36,087
Total expenses
1,24,64,36,633
1,27,16,09,027
V
35,60,94,812
25,51,42,316
VI Exceptional Items
-
6,57,652
VII Surplus before extr ordinary it ms and tax (V - VI)
35,60,94,812
25,57,99,968
VIII Extraordinary Items
3,28,851
-
IX Surplus before tax (VII - VIII)
35,57,65,961
25,57,99,968
X Tax exp nse : ( Refer Note No. "24" )
-
-
XI Surplus for the year (IX - X)
35,57,65,961
25,57,99,968
Statement of Significant Accounting Policies
"2"
The accompanying notes are an integral part of the financial statements
As per our attached Report of even date.
For and on behalf of
For and on behalf of the Holding Company (Council)
AMJ & CO
FRN 128550W
Chartered Accountants
Anil Virani
Convener A & F Sub-Committee
(A.K.JHUNJHUNWALA)
Partner
Membership No. 011778
Sandeep Sharma
Chief Financial Officer
MUMBAI,
MUMBAI,
DATED : 8th November, 2016
DATED : 8th November, 2016
Chairman
Executive Director
Sabyasachi Ray
Praveen Shankar Pandya
Surplus before exceptional and extraordinary items and tax (III -
IV)
Revenue from activities c rried on in pursuance of the Objects
For and on behalf of
For and on behalf of the Holding Company (Council)
AMJ & CO
FRN 128550W
Sd/-
Sd/-
Chartered Accountants
Praveenshankar Pandya
Anil Virani
Chairman
Convener A & F Sub Committee
Sd/-
(A.K.JHUNJHUNWALA)
Sd/-
Sd/-
Partner
Sabyasachi Ray
Sandeep Sharma
Membership No. 011778
Executive Director
Chief Financial Officer
MUMBAI,
MUMBAI,
DATED : 8th November, 2016
DATED : 8th November, 2016
