50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
96
(iii)
The exchange differences on settlement /
conversion are accounted for during the year.
Retirement Benefits:
Liability in respect of retirement benefits to Employees is pro-
vided and / or funded and charged to Statement of Income
and Expenditure as follows:
(a)Provident Fund/Family Pension:
As a percentage of Salary/Wages for eligible employees.
(b)Gratuity:
Gratuity Liability has been covered by Master Group Gratuity
Policy of Life Insurance Corporation of India under irrevoca-
ble trust.
(c)Leave Encashment:
Leave Encashment liability has been covered by Master
Policy of Life Insurance Corporation of India under
irrecoverable trust.
Research and Development Expenditure:
Revenue expenditure is charged to Statement of Income &
Expenditure and Capital expenditure is added to the cost of
Fixed Assets in the year in which it is incurred.
Government and Other Grants:
(i) Grants are accounted for on accrual basis within
the sanctioned amounts.
(ii) Grants relating to Fixed Assets are credited to Capital Re-
serve. Depreciation on such fixed assets is withdrawn from
such Reserve Account and credited to Statement of Income
and Expenditure
(iii)Grants, other than those relating to Fixed Assets, are
recognized in the Statement of Income and Expenditure.
