50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
95
THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
(A COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL)
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
1.
CORPORATE INFORMATION :
The Gem & Jewellery Export Promotion Council
(hereinafter referred to as the Council, the 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25 of the Companies Act, 1956 [superseded by Section 8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 Act)]. 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:
l
To provide guidance and information to members.
l
To liaise between the trade and government on issues
pertaining to the industry.
l
To advise the Indian Government on matters pertaining to
the industry.
l
To provide training and Research & Development support
for the development of the trade.
l
To facilitate contacts between Indian and foreign
businessmen.
In order to fulfill its objectives, the Council undertakes various
activities, which can be broadly divided into four categories:
l
Trade Facilitator
l
Advisory Role
l
Human Resource Development
l
Nodal Agency for Kimberley Process Certification Scheme
2. SIGNIFICANT ACCOUNTING POLICIES:
General:
i)
The Council has prepared these financial statements
in accordance with the accounting principles generally
accepted in India including the Accounting Standards
specified under Section 133 of 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)
The Council follows mercantile method of
accounting. Expenses and Income, to the extent considered
payable and receivable respectively, are accounted for on
accrual basis.
(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.
Valuation of Inventories:
Inventories of Diamonds, Precious and Semi-precious
stones, Precious metals, Raw materials and Consumables
etc. are valued at lower of cost and net realizable value
Fixed assets:
Fixed assets are stated at cost of acquisition or construction
less accumulated depreciation/amortisation and impairment
loss, if any. Cost includes inward freight, duties, taxes and
expenses incidental to acquisition and installation of the
asset.
Depreciation and Amortization
Depreciation on Fixed Assets has been provided in the
manner prescribed under the provisions of Section 123 and
other applicable provisions of the Act read with Schedule
II to the Act under the written down value method. The
Company has considered the useful life of each type of asset
(other than intangible asset) as indicated in Part C of the said
Schedule II and based on the carrying cost of each asset,
the depreciation has been worked out in respect of each of
the assets considering the balance useful life available as on
1st April, 2014 or date of acquisition of an asset if acquired
after that date.
Depreciation on intangible assets has been provided on
the basis of their useful life in accordance with
Accounting
Standard AS-26.
Depreciation has been charged on pro-rata basis for the
assets acquired or sold during the year.
In respect of assets where the balance life of an asset owned
and used by the Council is reduced due to the provisions
of the Schedule II to the Act, the difference in carrying cost
of these types of assets has been charged to the opening
balance of retained earnings of the Council.
Fixed assets costing up to Rs. 5,000/- are depreciated fully
on pro-rata basis.
Investments:
Long-term investments and current maturities of long-term
investments are stated at cost, less provision for other than
temporary diminution in value. Current investments, except
for current maturities of long term investments, are stated
at the lower of cost and market value, where applicable,
determined on a portfolio basis.
Transactions in Foreign Currency:
(i)
Foreign currency transactions are recorded at the
rates of exchange prevailing on the date of the transaction.
(ii)
Foreign currency assets and liabilities are restated
at year-end rates.
