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.~ ~EMPLOYEI;S'P~OVID~ FUND~A~ATION i.~ !' N~ PELHI i( I f

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VENUE: j

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::1 ,;:J ."! th • '118 Meeting ~ tile,'1 , '

FINANCE I~STMENT AND AUDIT. il! COMMITTEE

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[CENTRAL BOARD o.F TRUSTEES, EMPLOYEES' PRovIDENT FUND]~ ..

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i On,f;iI

20jUl.2015 at 02:30'p.~. "

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I,. ',Conference Hall, i3rd, FI~or, EPFO( Head Office), Q

, ' . B"'visl1ya' Nidhi Bhawan, I., li, B"ikaijl Cama Place,

N~ DELHI- 110066. B

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Lt·

. EMPl.,OYEESi PROVIDENT FUND. ORGANISATION

() AGENDA B(!)OKi"

11.Sth 'Meeting of the Finance Inves'nent and Audit Committee,.'. CBT, EPf

~!

Date: 20.01~2015. .fi

INDEX OF ITEMSi',.1

Time: 02:30 PM-- ----. _.

Item'No. Agenda . Page No•

,

1. Action Taken Report on the recommendedons of the USth

,'-4. Finance Investment Audit Committee held on 11.11.2014.. H

2. Confirmation of the Minutes of 117th Meel!ing of the The same shall beFinance Investment and Audit Committee hetd on placed in the20.01.201~ Regarding - Opening of finanCial bid of meeting held afterbidders successful in technical stage for appotntment of circulation of thePortfolio Managers, and further action thereon. said Minutes,

accordingly.

3.. To take necessary decision pursuant to the outcome of The same shall bethe 11]th ~C meeting and to recommend accordingfy placed in the'to the CBT ~nd any further action thereupon. meeting held after.!

'I.1circulation of thed

fi:~ 117th FIAC

Minutes,accordingly.

--------

4. Audited . Annual Account in respect of Employees'Provident Fund Scheme, 1952, Employees' Pension 5~3()Scheme, 1995 and Employees' Deposit Linked InsuranceScheme, 1976 for the financial year 2013"-14.

. 5. AnY,other item (s) with the permission of the Chair

• -

Item No 1:. ..~

Action Taken Statement in respect of 11Sth meeting of Finance. '-,

Investment_and Committee held on l-r.t1.2014 ....------.--...;........----------'-::-----,---------------- ------- --

Qecisfpns/Directionsof FIAC ActionTakenItem no.

(I.tem no. 3 of 11Sth F1AC)

(': 3. Finalization of RFPDocuments forselection of Portfolio Managers.

The CommlttE!e.after detailed discussionapprovectthe RFPWith certain changesinit. The Committee also decided torecommend to appoint SBI as one of thePortfoli~ Managerof EPFOon nominationbasis.

.4. Request for Proposal (RFP) forAppo.UUment as Cuttodllh 01.Securities for. the Employ.'. ,trovident FlindOrganization (EPFO)

lhe FIAC has deCided that the term ofCustod~allm.y be ;extended by a period. of 6 mbntfl ~yoncf the date of expiry of.the F~hd .MCinage~ to be appbintedbythe processdiscussedat Agenda Item No.3. . FIAC further directed that a letter of_consent should be obtained from the_present c~st(klian and the matter may beplaced before the CST in the next~eting.

In case, the CBT is not in agreementwiththe above view point, the RFPdocumentis approved for appointing the custodian.

(Item no. 4 of 11Sth FIAC)

As ~pproved by the FIAC, anadverf~ment was published in NationaldailieS'on 09.11.2014 and the approvedRFP ~9Cument was uploaded on websiteon 09H1.2014.

L

As recommended by the Committee, anagen~ item on RFP for appointment ofPortfolio Managers- Recommendation ofFIAC to appoint SBI as Port Folio Manageron nomlnatlon basis was placed before20Sth Meeting of CBT held on 19.12.2014.As p~t the. draft minutes circulated byConfeHmce Section, the Board afterdetail~ discussion approved the proposalcontained in the item.As petlschedule, a Pre-bid Conference was. held qr 29.12.2014 at EPFO Head Office,wherein the Consultant, MIs. CRISIL Ltd.clarified the queries raised by theParticipants on RFP. The clarifications onthe queries raised by the entities on ru=phave been posted on EPFOwebsite.

As perlthe recommendationsof the l1Sth FIAC,the Idtter of consent dated 17.12.2014 isObtain~ from MIs. Standard Chartered Bank,Custoc#anfor the EPFOcorpus.

t:J'

An agenda item (enclosingthe aboveconsentletter); was placed as item no. 19 in 20Sth

meeting of CBTheld on 19.12.2014. Furtheraction !wm be taken after receivingthe minutesof 205~hCBT,EPFmeeting, accordingly.

!I.~!

!I

,.

5. Request for Proposal (RFP) forAppointment as External ConcurrentAuditor (ECA) for the Employees'Provident Fund Organization (EPFO)

FAIC has decided that the tenure'of present external concurrent auditorshould be extended till October, 2016 onthe same terms and conditions on which'they were appointed. The committeefurther directed that a letter of consentshould' be' obtained from the presentexternal concurrent auditor and agendamay be placed before the next CSTfor itsapproval.

In. case, the CBT is not inagreement:with the above view point, theRFPdocument is approved for appointingthe ECA.'"

(Item no~'s of 11Sth FIAC) ,

As per the recommendationsof the 11SthFIAC,-the letter of consent dated 05.12.2014 isobtained from Mis. Chandabhoy &Jassoebhoy, External Concurrent Auditor(ECA );for the EPFO.

!

An a9,enda item (enclosing the aboveconsent letter) was placed as item no. 20in th~ 20Sth meeting of CBT held on19.12.2014. Further action will be takenafter receiving the minutes of 20Sth CST,EPFmeeting, accordingly.

6.

i,r:

(Item no; 6 of 11Sth FIAC) :.~ ,.,

Discussion on amended Regulations6f BASEL,III bon~ by RBI.

llte FA'& CAb intr&tuced the item to theCommittee. Sh. Chaudhary desited that adetailed.note on BAsEL III Additional Tier(AT} 1 bond may be placed before theCommittee: It was further decided that anExpert··Cor:mnittee already approved. to'look into various issues pertaining' toinvestments may be asked to analyzethisissue ' etso, Thereafter, therecomrnendehonof the Expert CommitteeOn BaSel IU' AT 1':bond may be placedbefore the C0"!lmittee.

The issue is being included in the termsand reference of the proposed Expert Sub-Committee.t;

r :,:!;I~Ii

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7. Note .f, on ,formation of' Expert The Qepartment of FinanCialService (DFS),Committee for issues related to Ministry of Finance vide its fetter no.investment Guidelines and Bajpai 20/4/2009-80.1 dated 28th November, 2014Report on Investment Pattern. has expressedno objection to Shri. Arun Kaul

for heading the Expert Sub-Committee ofEPFO.; Accordingly, the process is being takenup for-formation of Expert-SubCommittee byEPFO.j

The committee t06k note of the effortsmade by EPFOand empowered the CPFCto nominate some other Expert asChairman',of the said Sub-Corrlmittee inplaceof Sh. Arun Kaul.

8.

The proposal for. amendment in EPFScheme,' 1952 for el)9aging Scheduled,Commercial,Banks in addition to SBI forcollection .of, contribution was placedbefore the Finance Investment and AuditCommittee ~EPF). The matter wasdiscussedand recommended by FlAC, EPFf9r p,.,ng the same before the CBT,EPF.

(Item no. 8 of 11Sth F1AC)

'r

Proposal . for Amendment in EPFScheme 1952 for engaging ScheduledCommercial Banks In addition to S8Ifor cOllection' of Contribution.

As recommended in regard to Item No. 8 onthe atjOve subject by Finance, Investment &Audit .Committee in its iss= meeting, theproposijl for amendment in EPF,Scheme,1952for en~ing Scheduled Commercial Banks inaddition to SBI for collection of contributionhas tien placed before 20Sth CBT, EPF

r'meeting. Further action will be taken afterreceiving the minutes of 20Sth CBT, EPFmeeting.

As peJ1 recommendation of the FIAC, an'Iagend4 was placed as Item no. 15 in 20Sth

Meeting of CST held on 19.12.2014.'In.!:!:!

9. 14~ 15th 8t 16th (Combined) ValuationReport of the Employees' Pension

, Fund .as on 31.03.2012 - Reportsubmitted by Mis. K.A. Pandlt,, Consultants a Actuaries, the Valuer,. appointed by the CentralGovernment. The CBT,EPF after deliberation had

directed that the matter should be furtherconsidered by the FIAC to analyze indetails i the .reasons for variation in thevaluation results In the 14th through 16th

reports. along with the reports ofs,u~se~uent years. The approved minutes()f the Board meeting are awaited. \\Reports of subsequent years are, alsoexpected from the Actuary shortly andthe matter" will be accordingly placedbefore FIAC for consideration as perdlrections of the CST, EPF.

i=1:"j'!;

. As per the recommendation of the l1Sth

FiAc meeting,' the agenda item forCombined 'Actuarial report for 14th, 15th~rid 16th valuation for the period31.03.2010, 31.03.2011 and 31.03.2012~ ~ , ' '\

" .along.with tHe rec&nmendation of theFIAC was placed for considetation ofCBT,EPi=in its 20Sth meeting held on19.12.2014 s,

;.

10.

,'.

I'

Revised Estimates for the year 2014-15 and Budg~t Estimates for the year2015-16 for the EPFO and Schemesadministered by EPFO.

Additional '.Secretary (L&E) and Joint.Secretary & FA(Labour, Ministry of Labour& Employment pointed out that the RE2014-15 is higher ·than the BE 2014-15under the budget heads "Publicity" and'''Staff paldfrorn Contingencies".

FA&CAO, EPFO confirmed that the highprojection of RE 2014-15 under the saidbudget heads is,mainly due to organizingthe fellCltatfon programme for pensionerson enhancement of minimum pension andon account of outsourcing of staff againstthe shortfall of regular posts in the cadreofSSA & MTS..The cornmlttee decided to recommendtheRevised Estimates 2014-15 and BudgetE~imates 2015-16' for placing the samebefore the CBT,EPF.

(ttem no•.10 .of 11Sth FIAC)

11. Ihereaslng ~e litnit for investmentin Private sector, Category from 100/0

The committee decided to recommend the,Revised Estimates 2014-15 and BudgetEstimates2015-16 for placing in Central Boardof Trustees, EPFT. The CSThas approved theRE 2dl4-15 and BE 2015-16 in its 20Sth

I:'

meetir/g on 19.12.2014, .r:,

The $me has been sent to MOL&E forapproval of Central Governmentvide this officelefter qf even number dated 26.12.2014.

..,'.

As recommended by the Committee, anagend~ was placed as Item no. 22 in 20SthMeeting of CBT held on 19.12.2014. TheBoard [after discussion decided to refer thematte,q to Ex~rt Committee. Accordingly,the issue is being included in the terms :and reference of the proposed Expert Sub- :Committee

i,12. Amen.dment in Pattern of As recommended by the Committee, an

Investment notified by MoL&E on agend~iwas placed as Item no. 21 in 205th

21st November, 2013. Meetingof CBTheld on 19.12.2014. The Boardafter discussion approved the proposal as

Theltem was tabled. The Committeeafter contained in item. A letter on the matter isdiscussion approved the proposal as being sent to MoL&E.contained in ParaD.

to 15%.

.rtte itern was tabled. The O)fftMlttee att:erdiscussion approved the proposal ascontained in ParaG

(Item no. 11 of us= FIAC: placedon thetable .with permlssoh of Chair).

(Item' no. 12 of us= RAC: placedon thetable with permissionof Chair).

--".13. Risk M~nagement

investment in EPFO.PoliCY for Item ~s deferred.

;

I(~ ,\P~ {'1e~,I

M.eeting of Finance. Investment l~Audit Committee, I '

, ,I

Agenda ,Item No.: ~Audited Annual Account in respect:' of Employees'. Provident FundScheme. 1952, ~mployees' Pension ,Scheme, 1995 and Employees', Depo:sit Linked Insurance Scheme, 1976 for the financial year 2013-'14. ,

cPara 74 of Employees' provident Fund Scheme"1952 provides that the annual reporton '-the wo'rk and activities of the Central Board and its audited accounts togetherwith the report of Comptroller and Auditor Gen~~alof India shall be considered bythe'Executive'Committee and shall be placed for ~~ption at a meeting of the Boardto be held before the Tenth of December followIng the close of the financial yearconcerned.' ,

2. Para 74 also provides that if the report of the Comptroller and Auditor Generalis not-received by the first of December following the close of the financial year towhich it pertains, the audited accounts together with report of the Comptroller andAuditor General may be placed before the Execufive Committee / Board separatelyfrom the annual repor-t on the work and activities ~f the Board.

.. . q.

3. The anriual accounts of EPFO for the y~r 2013-14, duly approved andauthenticated by the Committee for approval df Annual Accounts compriSing ofCe~tral Provident 'fund 'Commissioner and Finqncial Advisor & Chief AccountsOfficer, were submrtred to the Director General of Audit, Central Expenditure(D(?ACE),New Delhi on 29-08-2014. The DGACE:took up the audit on 07-10-2014wh~h .was completed on 21-11-2014. The separate draft Audit Report was receivedfrom the D~ACEonly on 05-12-2014 for commenfs of the EPFO. The comments ofthe EPFOwer~ forwarded to DGACEon 09-12-2Q14. Thereafter, Audit Certificate,dated 19-12-2014 along with the Audit Report on\pccounts of Em~/oyees' ProvidentIFund Orga~isatiqn'for the year. 2013-14 was receiv»d on 19-12-2014.

i:;.

4. further, the Chairman of Central Board of Trustees, Employees' Provident Fundin its 188'th meeting held on 05.12;2009 had accepted the suggestion of Hon'ble CBTmembers' for placing the Annual Accounts before the Finance & InvestmentCommittee from the following year. Keepingin view of the same the audited annualaccount in respect of Employees' Provident Fund Scheme, 1952, Employees' PensionScheme, 1995 and Employees' Deposit Lihked Insurance Scheme, 1976 for the year2013-14 alongwith the Audit Repor4tand the rep~~es of the Organisation thereon

. are placed before the Finance Investment la Audit Committee, EPF forconsideration and rec~tnmendation to the Exec~ive Committee of the CentralBoard, of Trustees, EPF.

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~j 41_~""''''..w._~~.,''~ 1.JII:J._ ••••••••••••. ~ •••• R'. • •. F...... T_ .r~~_,..".....1 .........w:.iITi_ .........."..../.oIIW~

consottdated A.nnual Accounts. '. '.' '. .,..... '.. ,'. ,'. .; .

for fheyear2013~2014i.. . _...~, ••• I •• ,; ".~4r.GI~W'''''«''''~U*'''' •••••• ,... ••• 50_'•••.•..,.,... .r.,w_._.vwr,w ...•....•......•.....,.,.....,•.u...,.,.. •..•.....••IIi_AV· )f'.WYI/i.~41

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'51. No. CONTENTS Page N.o.1 Income & Expenditure Account 12 Income & Expenditure Appropriatioh Account 23- Ba~anceSheet - EPF 34 Contribution Account - EPS 95 Administration Account - EPS 10

" .....~.::::~~:::~;;;7:~;,.:.'BiiFance'Sheef::::EPSz~:.,.,..;t,:~ ..4"_ ••. ' ••'" ••_ .• ' "~"""""" •• ' •••••.•. , •

•••••.• _'.. '" '._ ·.<_ ••,,·'.o •••••••••~. __ ••

......... ,,_.. , ...•... ...... ·._··."""",,,,,,,,,",~,"',·h,,, ••,,,,,,,·,,,,,,,,,,··..,··._""A...,,. _·····--·11··

7 Contribution Account - epu 138 . Administration Account - ·EDLI 149 Ba.ance Sheet - EDLI 15

- --- - -

. ,:."v'', ',':';.:•....::::::;';::':;::::::;.;,~~;;,::i;:::::'7:;;~-

Employees' Provident Fund Organ.isationCorporate Headquarters

New Delhi

c·- " "'~:":"'" '.:".', ~'..o:..., ..• ,-'. ;-';'::::")'.":-7'7;-:=-'-::2::;':· -;- ~:::;:-.~.~-~.'.>~...:;"

•,-,EMPLOYEES' PROVIDENT FUNDORGANISATION

INCOME AND EXPENDITURE ACCOUNT FOR THEYEAR 2013·2014(EMPLOYEES' PROVIDENTFUNDSSCHEME, 1952)

Page 1

Previousyear NS, expenditure Amount Prevloua.ye.r NS' Income .~h.. Amount. ~ . ~ ~~

1 ~ __ ~ .~ _·"___·_1 _ ~ '- _ ._: ~~_4 !II: It"~ ~ _ ~_7.-" A gRs. P. . RI, P. R8. P. R8. P.

7.09.15.15.441.89 .1. Salaries of OfI\Cers a~ Sl~ff .

1.71.10.94.355.63 '. 2. AR~& Honorariilm

. 16;72,14,827.34. 3-, TA;,& L.T.C..•.. PebaionIFamDyPenslonlDealh-cum..

ReIhment1,93,89,62,687,59 .. GratuIty11,66,4«.73 5. ~.P.F .• 0.1:-.1. Benefits

ft. ·(.,OtrwCh8rps(Recumng' '.'

3,50.86,19,654.85 Non-rec:unfng)

(b) Mllntanance of officeBuildings!

15,13,64,070.00 atalfquartal'l

5,37.79.457.16 7. (a}Gnutta

0.00 (b)Refund of G.I. SayingsFund----------------14;62.37.16.939.19 Total Expendlturelnc:uned on E.P.F. Scheme

8. Expend"",. mum onAc!m'n!strJtloo of :

2.21.17.42.159.02

18.25.422.39

1.' Receipt bywayof AdmlnlatrallveCharges. Inspedion Charg •• and

27.66.12.98.128.72 PenaiDamage5 (I). 31.38,66,40.83S.90

2. Interest 'eam8!l0'; Investment ~

7.15,76.23.740.14 surplUs Administrative Fund 8,92,54.47.213.9!·3, Receipt from Pension Fund and

10,35.00.000.00 other Accounts (II) 12.83,20.623.82

16,68.11.041.88 4. Miscellaneous Receipts 18,01,31.968.28

0.00 5. . Exce •• of Expenditure over Income 0.00

1.42.21.62,138.57

1.85.98.67.925.27

. 19.76.72.277.13

".46.70,06,035.40

•15.98,71,530.066,98,56,979.94

0.001',31.00.114.467.78

.~ ..., -..•.~.•.~.-..,..."--'-'.·····"20.31.78,01.659.62

o 00 (a) Employ•••• PensionScheme

14.77.14.312.53 (b) E.D.L•.1. Scheme

'\J~),~~9·1?·:~~e.0·P9

1i

31.08.92.32.911.304 lOTAL

9. ellS of Income over Expendftore

0,00

18,55,55,600.68.r, :;:.:::,.:.;~,:::::.~:.:.i.•....~_cQ,OO...

24.0I,4t.80.573.51

.. ~:;:~;;:~;::';~·:2;::;~r,:;;::·.~::-;/'~.~r:":'.:·:·:?~.:...:.'. ... -;;,";:;:_~.:":.;,r)r:"17_::"';:::';::::;.r::·:r:':::·:;::;:~~:;:'~·::::'::'TO~:~' '~~~':'--~'~',-

.,'2,01.40.641.97 35.08.92.32.111.34 TOTAL 40.62,05,40.641.87

7

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EMPLOYEES' PROVIDENT FUND ORGANISATIONINCOME ANDEXPENDITURE APPROPRIATE ACCOUNT (2013-14)

P·II2·

Previousyear S.No. expenditure Amount Previous year s.

No. Income Amount

Ra•. P..0.00 1. Excess ~dlture over income

0.00 2. provislon'forBulkllng Construction Fund

Ra.· P.

0.00

0.00

R& Pi20,31; 78,01,658.82 1. Exc:ell of Income over' expendi.ture

0.00 2. Balance carried down. to Ba\IilC8 Sheet

.. .,Ra. ·P.

24.06,49.80,573.51

0.00·

. 3. Provision for Maintenance (~epaif.

0.00 ·Renewal and Replacement) Fund

. 20,31,78,01,659.62 4. Bala'nee earTled down to Balanee Sheet

0.00

24,06,49,80.573.51

20,31,7'.01,659.62 TOTAL 24.".41.80;173.11 20.31.7 ••01;•••• 12 TOTAL 24,01.41.80.173.51

Prevlpu, V'K:(I)

(Ii)

Rs. 0.00 lakh(III)

Rs. O.OO·lakh(Iv)

Rs. 0.00 lakh(v)

FogtHote:The accounts have been compiledon actualbasil.Interest eamed on investment of surplusAdmlnialra~ori Fund of previous yearsIndueled In the current year ~. 0.00 lakhElcpencIiIure incurred for Administration ofEmployees' Pension Scheme due from Goyt. Re. 0.00 LakhElcpendiIure Incurred for AdminIstration ofA.E.C.D. RI. 0.00 LakhEsUm_amoynt In alTJlf dye from the

Cuatnt year:

...••...,.. ...._._....~,."',',.,·..'v~·I.,,._!·.·.~.· ..···

emplgyerlbul not r-ecejye!f :.•...'(.:~,:,.~i.'.~':::;i:;::::~·:;;·:·:'.:·:l:::"'J":""';7.-::"'''''.;- .' •• .>: .r: "" .' . ":"t" '1a):.AdII*IIItrative ch:ltg6S" ' • :1' ::-~.:,--.:::.::.. :...:

RI.16,259.17 Lakh (b) lnapedlpn charges Re.19,325.53 lakh

(c) """'d~mages on Adm.Account,

( SAN.,AY KUMAR »FINANCIAL ADVISOR& CHIEF ACCOUNTS OFfICER

( Itlt JALAN» .CENTRAL PROVIDENT FUND COMMISSlO"ER

8 \,

EMPLOYEES' PROVIDENT FUND ORGANISATIONBALANCE SHEET AS AT 31ST MARCH, 2014

(EMPLOYEES' PROVIDENT FUNDS SCHEME, 1952)

)

Pa9·3

Previous year S.No. UabllltJe. Amount·Sch.

No. Amount Previous year S.··N~. Assets Sch.

No.'

. .Ra. P.

22.91,48.82.38.523.97 1. • Employees' Pro~ld.nt Fund Ale

.2.84.~.60.95.688.02 2. Inoperative Acc:ou~

2.26,98","7.877.08 3. Special Reserve FUnd Nc.. .4.. · In,t~rut_ynt:·

(a) BaIanc:e In the Account '10'be .. . .ciediled to membera AccountuplCt3f.OU01.5;60.23.87.532.09

(b) Amount received during the yearand 10be credited to membeIs

2.1".73.59.54."32.29 Account next year

5. StaffPrty!t!mt -FtIr!stAs!copq :7.66.14.80."&4.8066.12.62.820.17

a) StaffProvidentFund Ne

b) StaffProvIdentFund IntIIut Ale19.18.05.63.971.63 6. PensiorKum-gratulty Nc(Stafl)

2.70.07.98.358.13 7.1.01.14,000.46 8.

Investment Fluctuation Account

Security Deposita

.~.:~,::~:,-,:,:~:~!.....<~'~' .•:..~~-..~.~.::-.:-"'";"' ',~.;-:'~::'?:~~;:~:::.:;:;~:':~':~:,:,:':,;:.

Ra. . P.. . RI. P•

III 28.76.46,23.95,215.51 1. 'DJf!Smtnt Account:

IV '2.74.46.54.03,529.9<4 27.84.61.&9,61.094.57 a) Employees' Provlclent"Fund. :

V 2.46.84.12.588.07 . . 9.24.93.25.808.41 b) Stal Provident Fund Ale. . .·19.1.7.88:10."84~82. c) PensIon-cum-Graluity Fund

1.06.43.10;07.974.19 d)AdmInIstlalion Fund

2. Land'nd BuildIng:VI 21.84.08,70.968.47 4.08.f8.01.672.60 a)AIIel$aequlred

1.35.71,"3.~.47 b)AdvanceI paid

. 22.0t.85.204.58 3. Rec:overabla Advances (Staff)

VI 2.57.56.51.72.33<4.7" ••• SpecIal Reserve Fund

68.<48."0,403.21 (Rec:ov«able)

5. SecurItyDeposits (Advance

2.99.51.770.20 to parties)

29.06.7".<467.55 6. RemIttances in transit

"9.130.70 7. cash in hand-1.52.05.50.781.52 8. Cash In Bank (Both 581 & RBI)

-2.38.72:31.996.07' -i;:::~~iiD5'::--"

R.I. P.

XJI . 32.40.95.33.22.938."0'. .XVI.'; .: 10.29.13;51.091.75

XVI1 20.81.79.00.~29.27. .XVIII 1.27.70.f'9.24.023.17

XIX

".27.00.19.925."2 .4.10.76.60.6<46.29

18.59.21.138.58

VII

VIII

IX

X

8.22.78.59.122.8077.79,82,218.18

20.84.78,84.871.~

2.70.07,98.358.131.atMO.831.046

XXIII 68.51."5.596.21

xxz.ao.81.770.20

29.58."0.561.94

51.67.•..79

XXI .. -4,15.28.80.077.29·~':;';-·::i·;;:;:·ti~;.;'.28.182.91

28,01,27,74,03.668.'" TOTAL 34.08,".81 ••••121.6432.65)8.77.00.147.83 29,27.00,89,32.231.85 TOTAL

:';,-:,':~:'::~',;?~~~:~~~~~~~~;;.::~''N. -.";"?"; •••..- -. -~ .

9

...

.:)

EMPLOYEES' PROVIDENT FUND ORGANISATIONBALANCE SHEET AS AT 31ST MARCH, 2014

(EMPLOYEES' PROVIDENT FUNDS SCHEME. 1952).

eage.

Previous year S. Uabilities8ch.

Amount Previous year S.NI? .. ·No. No.

AI.. P. As. . P~ RI. P.28.01.27.74.03.868.64 TOUIBIF 32.61;~.77.00.147'" 21,27.00.89.32.231.85

8,72,70,73,062.03 9. .BlMding Constn,aCtian FUnd XI 8.87 .2~.41.81l7.04

10. Buiaing Mafnt.wnca (11Ip8Ir!'

. "0.00 . renewal & replaQ!ll18llt) FUIJd XII 0.00-1,05,90,31,21,274.46 11. Reveftue Surplua XIII 1,29.95.01 •.•• 128.32

29,24,036.52 _ 12. Group Insurance Sc:hlllMi(New) 28.89,1170.18

~"";1t.190.20 13'. StJidy Credits XIV 2.78.48.09.980.28

Assets Sch •..No." Am~unt

TotalBIFRa. P.

34; ••••••• 81•••• 121.&4

28.27.00.89,32,231.85 TQTAL . 34.06 ••••• 1•••• 121.M ZI,%l,llO.81.32,231 ••• TOTAL 34,01,18,81,61.121.64

PwloY. Year

Ra.1.26.657.90 Lakh

footNote(I) The 8CCCIIII1Whaw bMn~ on lid ••••••••.

(ii) EItimIIId WIIOIrt U tom Iheemploy ••.• tdnoI.-Ned:

(a) E.P.F. -*IbuIion(b) PIMI ~ GII~buIion. Adm. charges

anollMpec:tianct1qea

CurrentY",

R •. 1.33.307.80 Lakh

R&. 90.239.2& Lakh Ra. 1,08.442.05 Lakh

'''.:,::!':~'':~:;;1;:-- '::,?:~,:;;'"

(illl l1te~.of.£'p.F~S.P.F ~ PenSi~lIiity _ .••.. ••_.,.• ~._"_._.. ..•":=''''~~,.ico.i;,ric.

(w) i~01lie 8uIIdIng ~ Fund atRs. U7,25,.1 ,887,04 lie coet 01L_ and Building

1CqUired •• on 31.0u014 includingthe advances

.,.;d it "-.1,37.78.10.571.71 and the balance of

Rs.49.048,81,325.33 • n..ted aIongwith E.P.F.~Fund.

(v) AlIIhen.d AAeIAI eIICIIpILInd & Building are treated•• RtvwIue exp.rIdIIIn' no depreciation i. provided

an lsrld' BuiIcIktO. per Manual prOViSionS

}

(SANJAY KUMAR)FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER

(K.K. JALAN)CENTRAL PROVIDENT FUND COMMISSIONER

to

2012·2013Ra. P. SCHEDULE Np.'

p""" pf!ncom.:27,32,04,02,570.93 1. Administration Charges

19,86,95,168.67 2. Inspection Charges7,22,12,348.22 3; Penal Damages6,99,88,040.90 4. 7Q Interest

27,68,12,",128.72 Total

SCHEDULE No.' .RpA from PensIon hind apelgtbtr As.pls :

1. From Pension Fund for Adm. of~'. 0.00 PensionSc:heme,AE{C.D.)~·

12.35,00,000.00 2. From other ~10,35,00,000.00 Total. .

Qtla!/, pf rjc,lpl f[om oth.r AAcojm" :1Q.35,oo,ooO.oo 1. From AdminislJal!OOM; of E.D.LI. Sc:htme

0.00 . 2. From·other AcCounts'------...:;.;.=.10,35,00,000.00 Total.....:

0.00 1. Amount tnlmfemldll7011er~2. Transfer from Account No.2 to Account No.4

and vice versa as per Regional 0tIicesAccovntlr and CenfI'af omce~fs0.00

TotalN.tTotal

0.001O',!S,OO;OOO.OO

SCHEPU!,g No.1!!Employ",' t'rovld.pt Fund Acegupt; ..

19.76,62,39,83,621.44 Balance as per last Balance SheetAdd:

1. Contribution (including refunclcI-MiIcIravo'8I4,53,18,11,46,308.85. .... and transferred ~riti'~l~ .... '.'

.. ->"',,,",7"·',,·-~';"''-''''''''iiil4,80,27,63,458.13 securilies (H.Q. Officecontra.)

1,63,04,96,15,335.00 3. Interest credited to members Account27,71,13,64,923.60 4. Other Receipts ..

26,25,36,88,73,647.02Las:

1. Payment made during the year to outgoingmembers on final settlement

2. Premia paid on members Ufe insurance pdicy3. Loan paid during the year to the members4. Inoperative Account5. Miscellaneous Payment amount of securities

transferred back to exempted establishmentsTotal

Total

2,00.31.63,66,666.7023,06,57,221.00

30.11,27,92,851.0067.50.43,53,881.35

35.71.64.64,503.003,33,88,06,38,123.05

22,91,48,82,38,523.97 Balance as on 31,t March

", "'"!~::!':~.'::~·~..!r.~;;!;;':·.:::·.~·. . ' - '." ~.... ... :.,~:!:=;:~~ ;~':~;:r::~::~~::'<

2013-2014 2012·2013Ra. P. Ra. ,.

30,71,38,68,540.47 2,26,36,57,21,133.7146.49,78,224.1212,13,15,418.82 117,50,43,53,881.35II64,80,654.49 2,93,87,00,78,015.06

31,38 68 40 835.90 28 90 39 79 327.042,84,98 80 95 881.02

... ..

. ~09,20,70,970.58O.QO12,8320623.82 .'12.8320 823.82 0.00.

17 78,26,032.5012,83,20,623.82 2,21.98,97,003.08

0.00 I12,83,20,823.82 . 49.126.00

0.000.00 48,126.00

2,2I,9847,8n.08

0.000.00

12,83,20,623.82 1,71,95,28,87.692.48

1,63,04,96,15,335.00000

22,91.48.82.38,523.97 3,00,27,14,333.7217;78,26,032.50

0.005.20.49.5Ei!~3!.8~8.1;~ -·······,~J);,i!4~~·H

1,68,38,05,00,160.391.29.93.10.853.02

1.90.88.52.35.333.00 5,80,23,87.532.0929.84.05.77,907.86

30,34,00,90,26,475.97 2,12,97,64,45,961.420.00

13,46,533.102.31.44.69.54.407.42 15,62.541.00

20.82.39,061.00 15.900.0040.32.75.34.979.0052.68.63.87.773.92 1,75,65,83.496.77

0.0032.87.75.15.039.12 2.1.••.73 89 54 432.29

3,57,54,66,31,260.48 t20,33 83 41 964.3826,76,4&,23,95,215.51

11-':'::": .:....:~.:~~~.~-::~:~;~...•~.:''.' .-.

Interest aedited tomembers account 1,90,86,52,35,333.00Inlt paictandepolfts refunded Ioexmptd.estt. 1,93,697.00Interest paid 10 vendors 7,27,~,0I,788.52Interest accruecIon S.R.F. Alcadjusted 19,86,11,689.24Interest acx:uredof Auctuation Ale adjusted . 0.00

6 . OverdmftJnl8llllu:h8l1lec:Uly Bank : ....:.•.'.' ->: ···:~·:::·,,~::.t2's__ 1i"::···--. ... Total """,:74:70:": ••

SCHgQUl.E No. IVInoptrat!yt AccmInt :

Balance III par last Balanc:e SheetAdd:

1. Amount transfen'ed during the yearTotal

Le,.: Amount paleS during the year~ •• on 31,t Marth

sCH@MENo.ySoeclal flu"yt Funel :

. Balance 1II·~1ait Balance·SheetAdd:

1. . Amount nICoVlII1Idfrom ~inpIoyelS2. Inlerest on S.R.F. ACcoiJnt

TotalLess:

1. . Amount paidflom S!*:ial Reserve Fund2. Amount IrInsIInd to Death Relief Fund

TotalBallnce •• on 31st March

SCHEDULE No. VI

Interest Accoynt :Balance III per last Balance Sheet

Less:r2.3.4.

5.

Balance In the Accounts to be credited tothe subscribers IOOOUIlt upto 31.03.2014

Add:1 Interest raalised on Investment of securities2 Interest on S.B. AocounIB (Centra/)3 Interest on S.B. Accounts (Regional)4 Interest on I4IQIIftIesreceived from estts5 Interest reaIised from members 01'1 loans6 Penal damagelllld 7Q Interest 01'1 belilted

contributions nICIived during the yearAmount of loss on sale of securiles credited

TotalB.I.nct •• on 31,t March

...~

pege.201S-2014

Ra. ~.

2,84,98,60,95,688.02

52,88,63,87,773.923,17,11,24.83,...1.1443,18,70,79,832.00

.2,74,41.14,03,129."

2.26,98,47,8n.08

. 0.00'tt,86,11,689.24

. 2,41,14,51,568.32

46,968.250.00

.,8S1.252,41,14,12,1"'07

2.20,3i3,83,41 ,964.38

21,84,08,70,969.47

2,54,98,96,78,969. n0.00

46,16,399.290.00

41,036.00

2,57,08,35,929.680.00

2,S7,68,,1J72J334.74~'JO.fO,43,304.21

2012·2013As. SCHEWLE Ng. VII

P. dentFund Accoynt :A. Staff Proyl6.97.17.21.321.93

Add:2.36.10.85.437.00 1.63.79.81.963.00 '2.

~ 3.

Balance as per last Balance Sheet

Contribution (including refund otwllhclrawal)Interest c:recIitedto member's acpountOther naipI$

9,97,07,.q,r.n.13 . Total .Leu:'1-. . Payment made during the yearlD ouIQcIIn;

1.47.79,91,379.00 membefsonlinalseWement. .O.O!I 2. Preml~ paid on members life Ira.nnce policy

41,01,~,529.oo 3. Loan p8id during the year to members' .54.61,38.285.00 4. Other Paymenb (Transfer to oIhe{Regions)

2,43,42,92, 183.00 . .Total .7.53,84,58,128.13 . Balance •• on 3'btMlrcll

. . : B.teE. Hc transftrred from othtr Beg!ona :10.43,92,74!i.87 Balanc;e as on 1st April. 201354.61,38,285.00 Add : Amount tralisferred out to tMrRegiona.65,05,29,030.87 Total52.55.05,095.00 Leu ~ Amount received from other RegIons12,50,23,931.87 Balance as on 31.t March

7.66,14,80,464.10 Total (A+B)SCHEDULE No. VIII

Staff Provident Fund Interest Account:59.23.23.281.91 . Balance as per last Balance Sheet

Add:71.61.98,324.63 1. Interes! reaJised on investment ot sac:urilies

___ :-:-::~-:4~5,,::48~1.o:oo~2. Interes! on S.8. Account1.30.85,67,067.54 TotaJ ..

Len:

Balance as on 31.tMatchSCHEDULE No. IX

Pwlon-cym.Cjratylty AcCOYnt :17.66.71.18,609.21 Balance as per lasl Balance Sheet

Add:4.04 .908.00 1. Amount transferred from Aocount No.4

3.00 2. Interest realised on S. B. Aa;a.«1.53.58.42.098.18· 3. Interest realised on Securities during the year1.93.85.61.828.67 4. Amount paid by:he Regions from AleNo.2

21.14.19.27,447.04 Total.....:; .93.85.61.828.67 1.

2.28.()1.646.74 2.1.96.13.63,475.41

Payment made by the RegionsInterest paid tc ver-cc-s during the year

TotalBalanc~ as on 31st March19.18.05.63,971.83

2013·2014 2012·2013Rs. P. Ra. P.

7.53.64.56,528.932,70.07,98.358.13

2.75.56.59.859.00 0.0068.99.09.430.00 0.00

0.00 2,70,07,18,358.1310,98,20,25,8"17.93 0.00

270.07 98 358.13..

1.58.88.24,847.000.00

40.85.29.895.00 8,47,68,44,043.0779.94.17.918.00

2,79,67 ,~2.eeo;oo .. 0.008,18,52,53 117.83 25 02 29.018:96

8.72,7013082.03.12.50.23,S36.87

_: .79.94.17.918.00 1lIe coM olUnd & I92,44,41,853.87 and the I/1IOUIIIa,

88.18.35,889.004,26,05,864.87

8,22,78,59122.80

0.0066.12.62.820.17

0.0082.32.58.568.52 0.00

94.634.00 0.001,48,46,16,022.69

;;.._...... ...68:9J.:09:4~:Cl9 ;~~'.::~.,::;:~:;:':;:::.1::1!:.o:.::,,7.;.~::~,:.::<.,._:M·

1.67.24.376.51 . 85.58,08,48,884.7470,66,33,806.5177,79,82,216.11 79,80,832.90

19.18.05.63.971.63 0.0079.80.832.90

1.37.073.001.00 1 ,24,S1 ,363.00

1.69.54.81.868.472.21,17.42.159.02

23.08.79.25.073.12 20.31.78,01,659.6220 33 02.53,C122.62

2.21.1;42, 159.02 1 01 90 31 21 274.452.83.17.942.57

2.24.00.60.101.592O.84.78.()4.97lli

SCHEQlU Nq.X'nyestm,nt fluctuation Accgynt:

A Gain on redemption oIl8CUriIies accountedupIo 2012·2013

B Gain on redemption 01 MCUIities accountedC IntereltonAuc:tuation~

Toll:' .Les.; Amountarnortised.durlnglleyear

8aIanc4i •• on 31,t March

SCj1EDtI.E Nq.XIBuilding Conatryqion Fynd:

Baiance as per last BalanCe SheetAdd ~

1.2.

.Provision made during ".yearInterest aadited to the '1ixI

Ba..n~ •• on 31. March

.')Pagel

2013-2014Ra. P.

2,70.07,98,351.130.00'0.00

2,70,07,11_13• O;Q()

2.70.07 ,98,3§1.13

8,72, 70.73.062.03

.. 0.00'14,54,88,835.01 .

_ 8,ff1,21J,41.1t7.04.

uikling aequjrWlncbIIrIQILdwIIcIII,*,.on 31.3.14 laRa. 1.37.76.10.571.71

'ailebl. for oonIINdIon ~ •• on 31.03.2014 Ia. R•. 49••8.61.325.33

J2-

SCHEDULE No. XIBIJildinq Main"".nc. (rtpal!; rtptWILreplacem,nU fund:

Balance as per laat Balance SheetAdd;

1. Amount appiopriated from Revenue surplus2. interestaadited to the Fund

Balance •• on 31st March

SCHEOlA.E No, xmBevenue1itllplus •....,.,_._".•• "'" .• ,."::::~~:;::~,,:::~:::::;:~: :~~.'~:::··t·:::..,,,~

Balance as per last Bai.nce Sheetless:

1.

2Amour( adjusted by the RegIonal OfficesExcess of Expendi1ln CNfIIIncomeduringthe yell as tranafemld from Income andExpenditure AppropriatIon Account

TotalAdd;

12

Amount adjusted by 1he Regional OfficesExcess of Income 0Vf/It ElIpenditure duringthe year as Iransfemtd from Iricome andExpenditure AppropriatIon Account

TotalBalanc ••• on 31,t March

0.00

0.000.000.00

~1.05.90.31.21,274.45\

1,82.72,972.00

0.001,82,72,172.00

3,17,250.36

24.06,49,80,573.5124,06,52,97 .12S.87

1.29,~5,01"".12U2

2012-2013Rs. P. SCHEDULE No. XIV

Sundry e!'!dill :A. 8ag'9nol:

77,38,75,754.58 • (0 Suspense Account (Unclassified) (EPF)38,02,64,681.97 (iI)SUspense Account (Admn. Fund)

. 0.00 b Enoneous Receipt6.,27,13,931.22 e ltreguIar payments3,36,75,690.55 . d oVerPayments

0-,00 e AE.e.D. (DA) Account.0.00 f Amount repayable to E.D.l.I. Aa:ount •

32.51.76.638.040 g New Pension SchemeB.~:.

7.98,812.60 ..•.. exce.saedits in E.P.F. InvestmentAocount2.001.00 b ~Credits in S.P.F.lnvestmentAQcount5.089.00 c EXcess credits in Pen-cumogl'lit fund iIW. 'A/c.

dol ~ riot 'accounted for by the ReQlOflI1hOuQhreceived in Ale No.5 fromAle.rio.1

• . AmcuIl credited to Aa:.oUnt No. 1 but nadebit8d toAle No. 5

0.00

12.13.13.339.001.36.64.76.002.02

3.31.80.680.889.27.569.00

0.00

f9h

Excess credits to Acalunt No. 5Excess credits to Accouot No. 8Elu::ea&~its to ~No. 9N.lv. FromGov!. towards Disabilities Scheme

TotalSCHEDULE No, XV

3,09,84,10,1~»

Investm,nt He of EA.

mplovees' P .S"","", IIIIrd!a (OVlslentFund'lid cvntrallv .(cost Dde') :

23.68.37.49.35,300.83Add:

5,13.90.29.42.440.65 1. AmounIlnvested centrally (Cost Price)0.00 . 2. Gain on purchase of securities during the year

_.. ;::-.:-:...:-2B--:.S--2--.2=7--.•1:':.8--.7=7,-=7.4':':1:-:.4t::-::~:.~".~~:;~·.;;:..:.:.:. I" 0> ·:···· •• ·l'Qtat· .... :....':.;.:,,,,,;:;,,,.

L••• :0.00 1.

Balance as per lasr Balanee Sheet

1.17.46,01.87,335.551.17.46,01,87,335,55

17.64,81,76,90,405.93

Loss on sale of securities during the yearValue of securities redeemed during the year

TotalBalance (A) as on 31st March

2.

e. Securitln transferred by Begions :14.99.65,07.230.51 Balance as per last Balance Sheet (A. Value)

Add:4.80.27.63.458.13

0.001. Securities received (Accepted Value)2. OtherAdjustments

19.79.92,70.688.64 'Total000 Less: i. Securities returned back to establishments

_______ ---'0;;,,00;,;.,. 2. Other Adjustments19. 7~.92. 70,688.64 Balance (B) as on 31st March

Total (.A) + (8)27.84.61,69.61.094.57

2013-2014 2012-2013Ss. P. AI. P.

8.25.31.01.446.3758,34.98,549.97 1 38 59,01 962.0443.45.78,591.·13 . 1.'1,10.01.408.41

0,00 38.8683800.006,13;66.14~.22 IJ4.I3,25 808.413.70!9t.281.99

0.000.00 ·1

.1'5,29.19;819.00 17,66.75,20.114,602,1.1,84.62.571.98

0.00 '11.71,19,82,886.58'2.025.00 QC).1!.n201.76

0.00 1117 •••• 10484.112

0.00 -86,97.31,55.214.49

12.13.1~339.00 1945,78.52,759,701,36,00,93,482.09 1.0IA10.07.974.19

3.32.16,962.88 0.008.:».780.00 1;01431007974.19

0.002,78 49.09,980,28

2,62,03,144.319.60,33.524.26

92.503.10,27.64.81.76.90,405.93 39.634.75

2,25.18.635.006,55,45.92.86.096.87 3.98.049.00

0.00 1.43,65.766.34~'::";'-"RlO:W.69;j.;so2;110 :··,.::.c'''··'''··;·'Y;216Yii:·

1,89':1.000.00 6.00.32.39 ..85

2.00.42.22,35,.106.06 d.oo2004222,31,106.06 10 10 1n.22

32.19854741,396,74 22.01.15.204.58

19,79,92.70.688.64 5.75.31.841.2822,07.76,338.02

1.29.93,10.85302 1.23.66,288,250.00 0.00

21,09.85.81,541.66 0.000.00 0.000.00 0.00

2109,85,81,541.661

0.0032,40.95,33,22.938.40 : 2Ia!41467.55

SCHEQULE Ng. XVIInmtm.m Account gf Stall PrpyId.nt Fund:

Balance as per I••• BaJanc:eSheetAdd: Amount Invested CIII!rIIIy(Purdlue Price)

TCIbIILeu: Value of Securiiiu IeCIeemedduring the year

Balance. on31st Ma~h ..SCHEDl&I No.XVII ..

Inyut/Dent Ac~oynt gf Ptr!tlc!tKyin-GmtilltyFynd!Stam:

Balance as ~ Iulllalance SheetAdd :' Amount invested cenb'aIIy (P!.irchue Price) .

ToI!IILes.: Value of secur.iti" radeeined during the year

. B8tance.'0II31stMarch. SCHEplU No.xym

'nynW,"1 Acooua' pf 4«"D'"JtDUgn Fynd :Balance as per Iut BaIanct Sheet

Add: Investements made'. Total

Less: Securities r~.during the yearBalance _on 31st MarchSCHEpYlE Ng. XIX

ReCoVerable Adyans;u fSSaff\u on 31=03-2Q14:a Conveyance adVanceb House Building advancec Fan advanced Warm Clothing advancee Festivat advancef Natural Calamity advance

.~ .•. ~:i~f :;''':i!f!:~~=::::.:-:::.~:~::::=..;:::'Advance to Staff Coopec8tive CanteenlStores

j Computer Advancek Unorganised WoriI•• Social Security Scheme

Miscellaneous PaymentsTotal

SSCHED\A.E Ng. XXAmount in Transit:

a E P F Account No. 4b E PF Account No. 5c S P F Account No. 8d Penslon-<:um-Gratuity Aooount No. 9e Head Office Nc NoAaf E P F Investment Account9 S P F Investment Accounth Pens'C',,-<;um-Gratuity Fund Investment Ale

Tota'

13., :::.:' "::::';:~:'~;·~:<'·-:·'.:~;;?'-:"1"·}~~~·:-::7:·

.1'}'0 ..•... f

'.72013-2014

Ra.. P.

9,24.93.25,808.411.53,45,49.001.52

10,71,31,74,10"'349,25.23,718.18

10,28,13,51.091.75

19.17,88,10.484.822.68,16.06,18119~1,86,04.1',••••a11.04,25,16.038.74

20,81,71,00,128.27

1.06.43.10.07.974.11J21,27.09.18.048.98

1,~7,70. ".24,023.170.00

1,27,70~19,~023.17

2.43,91,218.316.95.33.410.28

88,803.1049.759,75

2.14.00.469.002,05,049.00

.• 1.72.12,59134.._._ _ _ ... 1.2f8.i~i"···

1.89.960.005.17.50,304.85

0.0010.92.358.22

18,58,21,131.58

6.40.58.883.2821.95.13.219.411.22.68.499.25

0.000.000.000.000.00

29,58,40,581.94

Sundry [)tbI!I :A. al!!penu _AymO 'gsla"i!I'dl ;

91,70,08,879.39 (I)Suapense Account(Unclassified) (EPF)18,99,20,136.40 (Ii) SuIpanM Account(Admn. Fund)6,27,13,931.22 B. .....,..,~ ''-3.36,75,690.55 C. 0..,." .•.•

D. Errpn!!O\!l DeW to Accqunt Nos. 5. 8 & 9 :a EJDIst accounted ror by R Os as transfer

40,80,96,451.70 IoAlc No.5 from Ale No.1and vice-versa49,80,.95.~12.07. ,-,··.b·,,_~~~~t NoS by bank .,.

.. .. . ~. Amauntdebitllc1toAlcNo5 but n~

25,71,06,062.77 crecfited to Ale No.1 & vice-versad ExQaaaacoountecl for by R.Os as tianster

2,04,38.794.97 toAlc No.8 tromAA: No.2and vice-versa1,76,779.00 e EmlneouadebitmadetoAccaunt NO.8

___ ~=~~o~.~oo~ f EIItintIou.deblt",...IOAccount NO.92A72,,31,998.07 Total

2012·2013Rs.

-3,05,52,52,476.181,33,73,31,697.1261,37,01,238.33·94;42,38,767.52

8,61,663.00. 0.00

2,18,71,004.81 .97,40,108.44

13,86,38,067.12-1,87 ,73,~7,464."

35,32,07,730.18 •14,35,693.88 b'21,53,259.30 ··c

3S,67,96,683.36-1,S2,OS,SO,781.52

P. SCHEDULE NO. XXI

CUb Book Ba!a(A) S oct" on 31:93=2014 :taM Blok of fndl.:

• EP.F: Account ~o. 1b EP.F. Account No. 2e EP.F. Account No. 4d EP.F. Account No. 5•. EP.F. Aclcount No.8.f EP..FAccouat No. 9g Held 0IIIc:eh NATRSSI EPf Appellate Tribunal• ..' roial (A)

(8) B ••• Bankof lojII,:

-PfIII8ion.cum-Grtuily Jnvestment Ale. TOIII(81

Tolll (A)+ (8)

SQWlUlE,NO. XXII

SCHEPtltCfO. XXIIISpas;IIIRutrvt Fynd <Btcoverablel :

68,11.28.281.21 BalIIICI_ per last Balan-.eSheet____ -=,..:7:-=1"".6~4:.:. 7~6;8.c;O:-;..O Add: Amount paid to Members during the year

68,82.93.04921 Total____ ~~3:.,;4;.;;.5;o2.~64.;;6;.;..;O.;:.,OLesl: Amount received from Employers

68,48,40,403.21 Balance as on 31st March

2013-2014AI. P.

.-

-6,79,42,87,245.131.13;'18;32.191.0918,31.77,740.35-23,46.15,~.33

66,15,002.001.00

t~,23!'4,715.30. '1;04.30;030.24·2C7.5f;03;878.37

~.34.»,25&. t1

- .. 1,17,51,19,150.5251,68;791.55

UUt,235.751~411C"1I1n.a2•••••152880,077.29

. 89,7f,~284.1517,91.1111223.44tr,-n;.f4!r.223,70,~81.99

4O.80,!l6;iC51.70-. :::~~::::::=·::~CI(W55

14,91,77,216.89

2,04,38,794.971,76,779.00

0.001'1.28.28182:91

68,48,40,403.21816865.00

68.54,57,268.21311672.00

88IS1,45,5~6.21

'l~

~-,Pag.'

.; ,,~..•,•...~ ;. . . ...~

\

')

Page'

EMPLOYEES' PENSION SCHEME. 1996RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR 2013-2014

(Contribution Account)

Arno.unt Prevlou. year.Previous year S.ReceiptsNo. ..

Rs. P.

16,29,8.0,03,69,680.12' 1. Openfng !3a1anceas on 01-04-2013

1,47,24,01,.02,776.67 :2. .(i) Con~ution of Employers

·0.00' (Ii) Contribution o;Go~ 2013-2014

(11/)An'ea!&' of contribution of Govt.

14;00,00,00,000.00 up to the year 2012-2013 .

3. Interest on the balance in the Public

51,06,43,00.000.00 Account

20;52.926.66 4. In~re8t on Saving Bank Account

92,48.04,21,323.58· 5. Intecat..-..Ived.OR SewIi&ies

92,47,91,841.51 6. Penal Damages

7. Other receipts :35,49,67,774.34 (a) Regional Contribution Alc No.1 0

0.00 (b) CaNraLCoatdbution Alc;.Nc.l.l1

S.No•

.PaYlYlal'!ts .Amount

Rs.1. . Amount pak! to outgoing mlmbersJbjjO.ficJarjes :f~.43,74,47,55,807.78. .

1,64;17,73,62,760 -,51

53.79.oo.~~· .

18,43;99.00.000.00

&1.28.3&.00.000.001

2.59.91.589.35

.•••1&,28.46.28.077.53

1.03.44.31.760.70

1.15,79.82.361.03

0.00

',-''',-~' "',: ..::.:~. ". '. ,. '.'~':::::::.~~':;:;:'~.:::::::.'"'.'::~':~~:'-;';.;:';'''- .::.::::;:·.7::-·: •. - ....•...::.=.:--. ·"to.

\

Rs. P. Rs. P.P.

(8) Amo!Jnt of Employee', shate With. i~est

(b) WiUlcir8W$VRetirement benefits·

{e) life Assurance benefits

(d) Pension

2. Amount paid as commission for

31,31.61.299.00 . dlsb~rsement of pension

&.00 0.00

.51,12,96,61.472.76'

0.00

57,87,36.73,955.44

38,77.91.~7.937.~5 .

0.00

. 51,60.60.81.978.50

64,70,07.097.34

3. Amount paid towards Pension Fund

0.00 Admn. Expenses

.' 4. Amount of securities transferred on

0.00 grant of exemption

5. Amount paid as accrued interest on

0.00

0.00

purchase of Securities1,32,57,39.340.87 3,11,26,54,218.40

6. Otb§r Rayments :

8,29,04&jO(f.o::,,·:;~·::;::{afRe9iOitalCcintrjbutkmAtctkf;'lcr·";"~~:'·::'::::;:;·: .iag .59 ,t:i76.00 ..

1 9,73,10.913.28 (b) CentraIContributionA/cNo.11 10,43,36,340.73

18.4\,74.47,55;S07.78 7. Closing Balance as on 31"()3-2014 20,83,72.05.57.596.23

::~:::-:-,:;··::r.:,";~:.:~::

19,35,86.70.06,322.88 21." ••••••• 50.368.90TOTAL

( SANJAY KUMAR )FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER

19,35,86.70,06,322.88 TOTAL 21,86.66,68,50.356.90

( K.K. JALAN )CENTRAL PROVIDENT FUND COMMISSIONER

r.>

-;PIli' 10

EMPLOYEES' PENSION SCHEME. 1996RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR 2013-2014

(AdmInistration Account)

Previous year S.No. Amo~nt 'Receipts

, o.oe

s., No. Payments .Amount P~vlou. year

1, Amount receIveci from GOvernment

towards cost of idmInIetration

2013-2014

'Ra •. P.

0.00

R.I.: .' P. Rt. P.

.0.00•.

2. Amount rec:eIvedfrom Pension Fund0.00 t~MllA.Expagu&.· 0.00

I0.000.00

0.001 0.000.00

0.000.000,00

3. Amcu5'A•••••••• EPF """""0.00 Account CIF

_"' ..~.._ .. '·_·.M· .•.•...•...•.•.. _ ... _ ... ". , ",:-:·!.!';.~t· •:~~;:;-.;;';.;.~";=::':'~':::'::':~"'"

\

Ra. .P. Ra.P.1. Bal~ amount Inc:un'edfrom EPF

Admlnillratfon Accour!t BJF

lIon·01.04.2013 0.00

0.00

2. Pavme'll on ~~nIatrat!oo :(I) Hmout Exptndltvrt :

(a) SaIarIea' .

(b) AIIowa'lce & HonorarIum(e) Travelling A1kM1nce

fo) PenIIorr6nllullr(Slaff)

(e) S.P.F. D.L.I. BeneftIa

(f) Other Chargea

(g) Grants

(h) Charges on maInIanance and

repairs of 0ftIca BuIldIng

TOTAL 0.00

0.000.000.000.00

0.000.000.00

0.000.00 0.00

0.00

'(R) ,C'.i;Itifmajftilij'f~":;;!'-:'·""'·Construction (Oftioe BuIldIng etc.)

,::-:,:::jT',;,~~":::·!:~~.~::::i.·.'·::".::::r."'7::f-;::~::::::~":-"""'.' ~~.-:- .•..,;, .. -.-

0.00

".00 11.00TOTAL 0.00

(SANJAY KUMAR IFINANCIAL ADVISOR & CHIEf' ACCOUNTS OFFICER

u

0.00 TOTAL

( K.K. JAlAN )CENTRAL PROVIDENT FUND COMMISSIONER

')~

EMPLOYEES' PENSION SCHEME, 1995BALANCE SHEET AS AT 31ST MARCH, 2014

··I~:'.

PI,,111

Balance as at31st SMarch Previous N •o. Amount

rLiabilities' sen.

No, AmountBalance as at 31stMarch Previous

'ear

S.No.

Assets Sch.No.

Ra. .. p.RL P.

18,43,74,47,55,807.78

0.00

As. .. P.'1. Employees'Pension Fund

coillribution AccOunt . 20,83,72,05.57,596.23

2. . Employees'PenSion Fund Adm". Nc':Amount incurred from EPF .

. Administration ACCQ~nt

.'

0.00 3. Investment Fluctuation Ac;count

1,48,70.-43.228.171,15,61,3O'.8f04.04 4. SundryCnidits'

Ra. P.1. Em~' P.enalonFund Contribution

Inve&tmentAle. kepi inDeposit withI'ubIIGAle. II. 7,13.19.61.20,241.868.35,93,44,20,241.86

12,09,14,41,67,749.96 2. .JnvesllJleht In sec:Urwes0.00

0.003. Enilll@!es' Pension fundAdmn. Ne.

0.00 '. (A) Amoi.rIt t'aCOV8I1Ibie tom Central GoYl.0.00 .• (8) Amount.recove'cable tom Pen'slon Fund

III 13:7~.08,38;81,679.53

-1,89,56,89,016.44 4. Calli Book Balance Contribution Ale.

22,47,84.192.68 5. Remittance In Transit

1,49,32.03.453.76 8. SundryDebits

0.000.00

IV -3,30,28,24,344.45

21,n,OO,220.68

v 2,01.27,23,026.78

18,44,90,08,88,121.82 20,",20,71,00,824.40TOTAL 20,85,20,78,00,824.401 18,44,80,08,8&.&21.82 TOTAL

1

PreyfOVl 'fear footNote~·.'t:,:-.fIInIIon.~frofrl employersOf'-

exempted anet unexempledest9blishmentsas on 31.03.2014 '

2. PensionContributIondue from '30vemmentas on 31.03.2014

.'~:o.;":'.J!;::~;;i.:::~:::::~·.:.:;:::;:::::::::'.;:;~;:::C:·.:::T~~:7.•:1";t-

(SANJAY KUMAR)FINANCIAL ADVISOR & CHIEFACCOUNTS OffiCER

Ra. 70,232.61Lakh

Ra.2594,39.21.926.08

Rs.3. PensionAdmln/atratlve Cost due from

0.00 Lakh PensionFund.a on 31.03.20144. Penaldam_gee due onEPS contribution

Rs. 47,298.65Lakh as on 31-03-2014S. The Investment In securitiesare shown in

BalanceSheet at cost price aftef' amortisation.6. Theaccounts have beencompiled on adual

bas/so

~'!"ntJ~'-...~..,... ,.•-....~..-..... ,

Rs. 74.935.42 Lakh

Rs.2.89.43,312,803.00

Ra. 0.00 lakh

Rs. 54,890.39 lalch

( K.K. JALAN)CENTRAL PROVIDENT FUND COMMISSIONER

17

2012·2013Rs. P. SCHEDULENo. I

Sun~ryC"dlH :51,54,46,020.12 1. AcGount No. 1064,02,76,577.99 2. .Account No. 11

___ ~~4~,O~8~,2:o::1~5-=.9:o:o33. Excess crecfltsinEPS InvestmentAic1,15,11,30,~04 Balance II on 31st MIIrdt:

. SCHEDULE No. " .Ampuntkept In d'POIltwltb.Public He :

5,70,87,01,20,241.86 Balance a&per lastBalance Sf1etIAdd: .

. ' 0.00 (i)Amount deposited inPublic AccQunt.·14.00.00.00.000.00 . 6f) Arrears of GeNt. ~ara upto.2012·13

. . 0.00 (iii)Govt. share of contributionfor 201~ 1!451.06.43,00.000.00 (iv)Interest.OI) PIiblic:Account .

6,35.93,44.20,2'-1.86 Balance. on 31st Ma!d':

SCHEQULE No. IU .Invutment In S.eyrltlu :6,'Semmes RUrcbfud centrally fC.el:

10,59.72.31,54,759.14 Balance as per lastBalance SheetAdd:

2,06.43.11,38,337.11 1.0.00 2.

Z~.n,ft,3.,33T.ff

Amount investedcentrally (Coat Price)Gain on purchase ofsecurities

TotalL.ss:

0.00 1.57,01.0f,25,346;29 2.57,01,01,2$,348.21

Loss on sale ofsecuritiesSecurities redeemeIt durfng1he"}'8ar

TotalBalance (A) I.on 31st March:12,09,14,41,11.749.98

B. Securities trao'f!rresI by Regloo. :._ .,_ ..... c .•,Y2:9:'::9,gt;·7"' ...~~;.::v':e~'"~;~.J~;.~t.:7.·.

Add:0.00 1.0.00 20.00

Securities received(Accepted Value)Other adjustment

TotalLess:

0.00 Securities retumedto eslabli8hrnent1(Accepted Value)

0.00 Balance (B)IS 00 31st March:---::1"::'2,"::0':"':.1:-:4,-:41:-,8::7~,7~4::1:::.9::-8 Total (MB)

SCHEDU~g No, IVCash Book Balance:

-71,83,86,594.61 1. Account No. 10-1.26.11.02,131.79 2. Account No. 11

8,37,99,709.96 3. Balance with S91Mumbai-1,89.56,89,016.44 Balance as on 31.t March:

.~.~{~?~:?:::?:~~}~~:~(:~?::~'-

2013-2014 2012·2013RI. P. Rs. P.

86,90,39,443.43 1.16,64,59.411.30.6f,8IJ,03,784.74 6,95,34,895.98

0.00't:.-7t;;ft 228. t7 20,17,63,057.60

. 5 54 46 088.88149 32 i)3 453,76

6,35,93,44,20,241.86..

0.00. 19.43,99,00,000.00 :

53,79,1;10,000.00 .57 ,il''lO M IVV'II-nn .. ..

7.13,19.1t2O 241.11. .

-

12,09,14,41,67,749.96

2,64,14.71;51.219.950.00

2 64 n 7&5121.,9.

0.001(1(J201f.37,290~36100%0.1\37 21CU8

13 73 01 3181 879.13

-C··'··. : .... ,,9,PP •-:::~~:: ;,-:", __ ,__ ,'4' • - ...

o·do.0.00

0.00

0.0013 73 08 3881 879.13 .

-1.51,30,4-4.645.12-2.54,25,89,513.90

75,28,09814.57-3 3028 24 344.4'

('8

SCHEDULENo. VSundrY Dlb", :

1. Account No. 102. Account No.113. ExC8IIaccounted for by R.0s ••

transfer tom Ale.10 to 11 & vic:e-versa4. Amount debited to Ale No.11butnot

. Cr'8dItedIO AlcNo.10 ;" vice·versa·. .Barancea. on 31st March:

•.....·....···1····· .~"':,!~..•-..,"

,~

Page 122013-2014

Rs. P.

1,65.11,34,506.326,95,34,895.98

20,17,63,057.60

1,02.90,566.882.01,27,23,026.78

,..~ ':~~?-;~::~.-~:.~=:::.~~',~:'~-""

l

:"'\'. )EMPLOYEES'DEPOSIT LINKED INSURANCE SCHEME, 1976

REC!=IPTAND PAYMENT ACCOUNT FOR THE YEAR 2013-2014(Contribution Account)

Page 13

Previous year s. Amount Amount:·ReceiptNo.

s.Previous year Payrnel)t.... . .

RL P.1.07,00,27,28,765.62 t. Opening Bal.anceas on G\44.2013

6,20,12,91,195.55 2. (i) Contribution 6f EmPJoyeI8 .0.00 .. (ii)·Contnbution.o(Gove~9.00- (iii) Mears ofCdntribution of~. for

4,99,86,00,000.00 .3. . Interest on.investment h PubIc~unt~36.~68,1a~· 4. lnteRl$l on investmentln ~ .

1.53,51;365.49 5. Interest on S.B.Accounts4,55,89,457.20 6.

Ra. Po". 1.21,28,79,47,170.06,.

6.97.78,00,269.07. 0.00

6.005,42.35.00,000.00

. 5,35,08.02,141.221.41,25.&34.686.89.06,284.96Penal DlImages

7. Other receiPtsin;16,36,400.00

0.00Account No.21Account No.25

1.07.63,475.000.00

No... Rs.P.

1,52,63.28,646.OQ

0.00 .

20,89,45,027.38

60,19,536.531,~70.oo

1,37,39,25,50,794.98

1,22,62,75,85,101.70 TOTAL 1,39.13,38.45,17";89 1,39,13,38,45,174.89

·Ra. P.·f,23,87,73,569.00 , .

2.

. .Assurance BecletbAmount reftJnded to emplQyers ongrant of exempIion .

3. Amount paid .s accrued interest. <on·Purc:t1.H oriearilea

4. O!ber Plymerjts h ;33,22,387.00 Account No.i1 .

3,570.00 Account No. 251,21,28,79,47.170.06 5. Closing Balance as on 3~'()3-2014

. 0.00

9,75,19,213.64

1,22,82,75,86,909.70 TOTAL

(SANJAY KUMAR)FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER

..•.,~. . .. 4 __ ..• "_~ •• ,~.~ •••••• ., ••••• " ••• __ •••••••••• _ •. _ •• _ ••• _ ••

{3

( K.K. 'JALAN )CENTRAL PROVIDENT FUND COMMISSIONER

\

~Page 14

EMPLOYEES' DEPOSIT LINKED INSURANCE SCHEME, 1976RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR 2013·2014

(Administration Account)

Pre-vious year NS, Receiptso. Amount Payments AmountS.No.Previous year

Ra. P•..16.61.09.95,443.15 1. Opening Bala.nee as oo01-Q4-2013

. lb. P.18,0'1,69,59,608.00

2. Administrative Charges received. ·.21.12,36.942.23 from.the employers during ttleyear 21.89.51,069.96

Ra. P.As. P.1. .eiymeot 00 AllmIoiSflaI!9n :

BIM!oue EXDB!Iditure :1.8aIarie&2. AIIow8nce & Honoraria .3. T:A.. & t.r.c.4; Penlia,nlGratuity (Slaff)5.Staff ~ Fund Dli Benefits.s.0II8t charges (R8aIIring and

non-rec:uning)

7.Granta8: Maintenaf1ee and repairs of

oftice buildings etc.TOTAL

RI. P: (I). 7.16.31.469.11' .1.72.83.781:3716,88,038~68

1,95.65,481."f1.7~.27

Rs. P.7;49.71 ;334.73

. 1.87;86.544.7019.96,639.67

2.23.40.829:8918.•438.61

29.14.423.43' 4. Penal Damages 32.96.454.33

-; 10.40.255.001.:4.3.1.6,953.47 3. Ina~onChargesreceiyed

5. Amount received from GoYl towardfcoat of Administration of the fund

0.00 for the year 2012-13

3,54.40.602.595.43,226.84

4.51.21.273.087.05.626.06

0.001 15,28,930.0014.77.14.312.53

8.49,596.000.00

.v,v I IV"_I~iIP,y.~:~· : ._••",. •••..•••.~.w.,_ n..G'~'WI ~ ,...v..;r-I.v·,..,.---_·- _ 19 ,5i:0:4·:G8~~i3·:fj'~·:::~~:::::::;:::;~;::;'~;::1"._ •• _ ••• ~_,_. _. ~ _.~ 4, •••• ":::':."'.::~;;;,:;'.:-,:.':;:;::--~-"'~.:':., ••

".11.57,27,280_33 TOTAL 19.69 ••••••• 1IOI.CII

1.33.55.04.294.987.50.261.07

0.00

6. a) IntanIst received in irwesamentfrom Administration Ale.

b) Interest on S.B. Ale.c) lotereston Advances

1.45.19.83.542.695.96.029.98

0.00

8.962.O!t0.00

7. Other receipts :Account No. 22Account No. 24

18.16.57.27.280.33 TOTALt

21,948.100.00

16,14.863.9416.55.5&,800.68 16.55'.55.600.68

(b) ~at Expenditure :ConaIruction of office building!staff quarters etc.10.35.323.44 19,74,118.19

18,036.360.00

2. O!btr II!I\'TPeIIIlF :Account No. 22Account No. 24

18.01.69.59,~.Q!I:!!!;L::3; :~.etasIog··R~I~"---- .••..,•.n., .,n... ":::;.::;:;'.:~.;:.:;.:;.;.:;.._ .

( SANJAY KUMAR)FINANCIAL-ADVISOR & CHIEP'ACCOUNTS OFFICER

--~:-~".~::;:;:?}:~:~,:-:7:::';T,:' ':":;':::~:~~:'::::~~~.:.:.:.:.~:::: :'"".:-',' .

( K.K. JALAN )CENTRAL PROVIDENT FUND COMMISSIONER

21)

'. ',.".'~-'~:.~'',:--: .:..:

')

Plge 11

EMPLOYEES' DEPOSIT LINKED INSURANCE SCHEME, 1976BALANCE SHEET AS AT 31STMarch, 2014

Balance as at 31st S. Sch.March Previous No.

Liabilities No.Amount

earAs. P. ' Rs. ' P.

1. E.mPloyees·'OepositLinked1.21.28,79,47,170,06 InsuranceFund Ale. ~.37;39.25,50,794.98.

2. ~pI~ Oepos!t'Unked18,01.69,59;608.00 . InsuranceFund Adm. Alc, 19.53.04,69,593,1~,.

20,52.29.218,82 3. SundryCredits I 20,50,63,017,14

Balance a. at 31st S.March Previous No.

'ear

Sch.No. AmountAssets

Ib.P. As. P~:,1. Iny"tm.nt Account:a), Employees'!::1epgsllYoked Insurance

EyndA~unt:. II 6~:76,40,88,5Q2.88

89.22,94.14,794..f4

,57.22.29,55.938.95 ~) Investm.nt in sec:uritiel

6~.80.59.14.794.14' (iI) Deposit in PublicAcc:ount III

b) EnpIoyeet' QJpositYnked .'Insurance Adm Fundt\ccoyDt :

flJ. tlt.59.87.410.40 '(i) Amount Invested inTermOepoaita IV 19.66,42,50.953.09

V -15,81.79,718.87

VI 37,07,16.649.81

VII 11.45,92,868.18

VIII 14,32,04,356.08

1.57.12.80.88,405.31

-11.89.70.623.82 ' (iI) Amount due from EPFAdm. Ne.

21.54.83.219.14 2. Cash Balance

13.96.78.150.18 3. RemiHance in transit

13,91,07.107.89 4. Sundry Debits

1,39,51.01.35.996.88 TOTAL 1,57,12,80,88.405.31 1.39,51.01.31••••••• ' TOTAL

__ ·,4 •......,._"'~· ••~··,··,•..•,··,_.,·..,·f...••••~ .-.

\

( SAN.lAYKUMAR )FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER

:21

..:.. PreyIou'YU',"iX.'.:;li;,-,;;,;:;foo' Not. ";'-,-:':-,"'.'7'.,:;".,,,,,,,;,',"':';,",',,,,,"""':'7';" "9uUlnt,YeaF "," .- .., 1. EOlr contribution duefrom emPloYers •

Rs.7.598.48Lakh as on 31,03.2014 Rs,7,611,281alth\2. EDL! Adm, and In6pectIonCharves due i

Rs. 271,88 Lakh from employers as on31-03-2014 Rs, 26376 Lakh3. Penal damages dueonEDLI Contb ••Adm. &

RI. 3.295.69 Lakh Inspection Charges ason 31-03-2014 Rs, 3,803,25lakh4. The investment in securities are shown in

Balance Sheet at costpric;eafter amartIut\on.5. The accounts havebeencompJled onactual

basis,

( K.K. JALAH )CENTRAL PROVIDENT FUNDCOMMISSIONER

2012·2013Rs. P. SCHEDULE No, ,

Sundry CMIts :3,40,73,030.739,60,91,269.21.13,44,061.551,31,15;464.9<46,05,90,048.39

.'15,344.00

1, EXCe8SaedItInAleNo.212. Exc:eas aedilin Ne No. 253. Excau aedltln R.B.!.Ale4. .Exce•• credit InAle No. 22.5. Exc:eas aedlt inNe No. 246: Exc:eas c:re<IltsIn EDlIlnvestment Ale

. Balanel as on 31at March.20;52,29,218.82

SCHEDULE No. IIA. Invastm.nt In Secyrltles :

. 47.92,96,89.132.86 Balance aa.P4!I'last Balance SheetAdd; .

·12,97,85,35.258.55 Amount Invested centrally (Cost Price)60,90,82.24,391.41 : . Tolal'. Uns:3,68,52,68,452.46 . Secutftlea redeemed during the year

57,22",29,55,938.95 . Batance. B.SecyrJIIU Sranlftmd by Rigions :

0.00 Balance aa per last Balance Sheet(Accepted Value)

Add:0.00 1.0.00 2.0.00

Secutftlea received (Accepted Value)Other adjustments

TotalLess:

0.00 Securftlea returned to Establishments(Accepted Value)

Balance BBalance aa on 31st March (AtB)

0.0057,22.29,55,938.95

SCHEDULE No. III... '. .., .. : &u0lln!dlllMlttd·laP1IblfcA/c: .'

'~'H"'" » •. ,,,. 58.80:73:1"4:794.14" Balance aa per last Balance Sheet0.00 1. Depoalta made during the year0.00 2. Govt. share of contribution0.00 3. Govt. sharI arrears

4,99.86.00.000.00 4. Interest on balance in Public Account6MO,59,14z794.14 Balanceaa on 31st March

SCHEDULE No. IVAmoum !nUlted :

16.66,02.63,115.42 Batance aa per /astBalance SheetAdd:

11,02.00,00000 1.1,33,55.04.294,98 2.

18,10,59,67.410.40

Amount deposlted during the yearInterest onSDA during the year

TolalLess:

000 Amount redeemed during the yearBaianci as on 31st March18,1~!5~67J41 0.40

.:...~':

2013-2014 2012-2013Ra. P. RL P.

3,60,35,183.559,61,90,365.21 -7.37,20,987.6513,44,061.55

1,31,22,502.44 10,35.00,000.005,8~,75,884.39

0.00 0.002050 68 017.14 . 2 SJ7! 78 012.11.

-14,87,"9,835.9767,22,29,55.938.95

-11 88.70.123.1216 28 62 70'201.63..,,. •• 82'26 140.58 ..

..'4744137637.70 17,38,63,627.66"'7 'IA .aft 81,002.88 1,35,10,090.00

1,00,24,274.530.00 1.01,91,761.49

7893476.4621.54.83,211.14

0.000.000.00

12,37,13,905.960.00 5,32,224.15

". 1 54 32 020.070.00 13 91 78 150.1'

17 76dO,,8 602.88

,,: -";'" ,~:',,:!::::::::;.:;::·:.s:2:;;;:,;:·:}:'·;:~r::'···-"":-. ,:"- "",,'-' '''·7,10i41~43!.;S8'63.80,59,14.79<4.14 1.64,22,438.50

0.00 1,03,82,205.310.00 1.17.20, ••••1.320.00

6 42 35 00 000.00 1.66,08.121.04It 22.1414.794.14

1 2932466.1413 91 07 107."

18,10,59,67,410.40

10,63.00.000.001 45 1983 542.69

18 6642.50 953.09

0.001',66,42.50 •• 53.09

,.2.--.....•.......•;"r~.~~~~~;:' ...•·:-···;- .. "

§CHERU,"E No. YAm0ynt du.'rom E.P,F. MgdnIttQtIqn Nc :A. Tranllctlgn t,M; No.24 :

Balance as per last Balance SheetAdd:

During the yearless :

. AmoUnt received back. Balance a. 0" 311t MardI

B. transaction In mard SOHe No,22 :,Amount trans~~ to E,P.F: AccountNo.2 (Administration ~ Share)

S~lanc:•• s on ~1st ~ (A+S)'.

SCHEPUlE Ng, VICUb Book Balann :

1. ~No.21. 2. Account No, 253. Accoun\ No-.224. AccounCNo. 245. Balance with 5BI

Balance.s on 31stlDrch

SCHEDULE ",0. yuRemittance In Transit:

1. From Ale No. 21 to 252. From Bank to Nc No. 253. From Alc No. 22 to 24

Balanc:e as on 31st March

SCHEDULE No, VIIISyndry Debits: .·""·';"f:;·"":"Accounr NO.'21 .

2. Aecounl No 253. A¢ourn No. 224. Ac{count No. 245. Excess accounted for by R.o. aa

transfer fromNc.22 to 24 & vlc:e-ver.a6. Excess accounted lor by R.o. as .

transfer fromNc,21 to 25 & Vic:e-versa

',)Page 11

2013·2014Rs. P.

·11,89.70,623.82

12,83,20,623.82

0.0093,50.000,00

-16,75.29,718.87

.15,81,.,'.718.87

21,76.02.508.386;92.12,789.0041,53,092.7381,67,499.15

7.15,80.760.5637.07.14l.64U1

9.84,96,590.965.32.224.15

1,55.64.053.0711,45,92~861.18

. '0'.·" •• - •• ' •• --:~:::::::::-.:~.~:=.7.51A2,91'-2.58· ..1,64.26.337.501.03.73.517.501.17.20.941.32

Balance as on 31.t March

...~. ...• :.•...~.' '.' ..

1,66,08.121.04

1.29,32,466.1414,32,04,356.08

.)

Separate Audit Report of theComptroller &Auditor General of India onthe Accounts of Employees' Provident Fund Organisation for theyearended 31March 2014 -

SEPARATE AUDITR~PORT -OBSERVATIONS

. We have audited the .attached Balance Sheet of. Employees' Provident. Fund.. Organization (EPFO)as at 31 March 201.4, Ir"!come & Expenditure Account and Receipts &. Payments ACCQuntfor the year ended on that date underSection 19 (2) of the Comptrol!er &Auditor General's (Duties, Powers & Conditlpns of Service)Act, 1971 read'with Section 5A(6) of the Employees' Provident Fund and ~aneous. Provisions Ad, 1~. These.financial s~tements include the accounts of· 40 Regionaloffices (ROs) ~f. the .Employ~es'Provident Fund Organization. Out. of these .a.~of~Regional O~.and~4 SROs wereaudited and Commentshave been. included in this report.These financial statementS ant theresponsibility of the EPFO's management. .Our responsibility· is to express an opinion onthese-ftnanciahw,ltlJl8At&···baeeOeii ouraudit.··· .2. . This Separate Audit Report contains the comments of the Comptroller and AuditorGeneral of India (CAG) on the accounting treatment only with regard to classification,.conformity with the best accounting practices, accounting standards and disclosw-e norms,etc. Audit observations on financial transactions with regard to compliance with the L:aw,Rules & Regulations (Propriety and Regularity) and efficiency-cum-performance aspects,ete., it any, are reportedthroughtnspection ReportsJCAG's Audit Reports separately.3. We have conducted our audit in accordance with auditing standards generallyaccepted in India. These standards require that we plan and perform the audit to obtainreasooabfe assurance about whether the fi•• , idaI statements are free from· materialmisstatements. An audit includes examining, on a test basis, evidences supporting theamounts and disclosure in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, .as well asevaluating the overanpresentation of financial statements. We believe thatour audit provides

..'~l;a'rnsonable basis for;.(JtU'"opinioftP:""":·'":'''"'7::'·'''.'''''''''''''."""" .., . ..... -' . 'N";. ::: ..:~.~::..".:::::::::!.:~~!:.,,:.-,"4. Based on ouraudit, we report that:i We have obtained all the information and explanations, which to the best of ourknowledge and beliefwere neceSS8IY for the purpose of our audit;ii The Balance Sheet, Income & Expenditure Account and Receipts & PaymentsAccount dealt with by this report have not been drawnup in the format prescribed by theGovernment of India,Ministry of Finance.iii In our opinion, proper books of accounts and other relevant records have beenmaintained by the EPFO as required under Section 5A (5) of the Employees' Provident FundandMiscellaneous Provisions Ad, 1952in so far as it appears from our examination of suchbooks. •iv We further report that·

COMMENTS OF THE ORGANISATION..1. No Comments, being factual..

2. No Comments, being factual.

3. No Comments, being factual.

4. Th~~~~~t~:-h~:~i>;;~'~re~~r~d'ln'th~ iormat~~~~;g~;d'~~r PaNt 55 ofthe Employees' Provident Fund Scheme, 1952 read with Section A (5) of theEmployees' Provident Funds andMiscellaneous Provisions Act, 19 .

AA.i.A.1.1

Balance SheetLiabilitiesInoperative Account (Schedule IV)- Rs.2744B.54 croreThe above amount which was siqnificarrt waslying in inoperative accounts with

IA.1.1 As per the procedure interest on ev8!'i account is calculated yearly at the end !

~]

:)

A.1.2 . Interest Account (Schedule VI):-25756.52croi'e· .. .. .. .As on 3111 March 2014, 76 lakh EPF sub$criberaccounts werepending for updatio.n.

The number ofaccouhts which were not upc;lated,principal amounts and interest thereonhave not been calculated and ~uila~lydisdosed in accounts.

A.l.1 In linanc::f~ year·2Q13-14, a total 1357~c:s Nq.·of.accounts were updatEid; Inupdating·these many accounts Rs.1908~2 lacs was d4lbited to interest account.Therefore, on ari average Rs.1407/- was credite~ to every account eonsequent uponthe updation. It is, therefore, expeCted that while updating ~he remaining 76· lacacCounts, Rs.1069321- ·lacs win be required.. As. on 31-03-2014, an ~mount of.R1s.2184081-lacs is ba!ance·in the interest account. It .Is, therefore, C9flfinned that8ufficitnt amo\.IIIt Is available {or updating the account Is already.there in the BalanceSheet. Iiowever, disclosures have t10t been made in the·Balaqce Sheet, theseissues shaHbe ~aIdered in consultati9l1 with C&AG while adopting new fonnat forpresenlatiOnbf the account in the subsequent year.

A.1.3 Sundry Credits (SchecMe ~-Rs.m.4tcrontThe above do not include the mandatory contribution by EPFO towards New

Pension Scheme equal to the amount received from employees amo~ntlng to Rs. 15.29crore. This has resulted In understatement of expenditure .by the same amount withconsequent understatement of Sundry Credits and overstatement of Revenue Surplus byRs.15.29 crore. .

of the year. The process is called updation of the account The principal and interestcalculated·for the year becomes opening balance for the next financial year if suchaccount becomes inoperative in subsequent year, It is not possible to calculate theamount of contribution made In that. account (principal) and Interest earnedthereupon from year to year. Therefore, despite being· Iisignificant amount, it is notpossible to bifurcate the inoperative account into principal and interest

EPFO. The organization did not have details of the principal amount and the amount ofinterest eamed there on under thishead.

A.U. EPFO has bee~ following cash system of accounting wherein an amount asexpend'lture can only be booked on the date lt: is paid. However, the amountcollected but not deposited in the fioat account will appear as Sundry creditors. In"the present case, the Sundry creditors reflects only the amount Which has beencollected from the employee as their eontribution towards NPSand was not tillend ofthe yearpaid to NPS. This account of sundry credits so far as the credit for NPS isconcerned, has been squared up in the nextyear as the entireamount has beenpaidto NPS.

A.2. Assets

1..2.1 Land& Buildill9-AuetS AcciuWed Rs.427 eror.

(i) As per the A.<?<??un~ngPo~icy_~?~{~L~?Cp~~~iIU!~in;;~!Ted on ~~. ~~~!!;;~~~!lj)l~IJ~.- .~.o..2;1(il As peq)FoviSions.af:.theAccounting· M~nua1.of:EPEO;:au.:~~IS e,,~pt..•.·8iirbUik1lilgS· has been treated as revenue-· expenditure and no depreciation on buildingwas land andbUiIing are treated as revenue 1!xpendlture and nodepreciatlon IS prOVidedprovided. This .resulted i~'unde~ta~e'!le~t Of. fixed assets ~nd overstatement of .reve~ue for on land building. This fact has ~en disclosed by ~ay of .a footnote to theexpenditure. Ibis Accounting PolICYIS In Violation ofAccountmg Standard 1~. DesPl~ebel~g Balance Sh t as wen as in the note on the Accounting Pohcy of the EPFOpointed out in the audit reports for the year 2006·07102012-13 same practice continued In forwarded with the Annual Accounts of the EPFO for the year2013-14 and thesame2013-14. In Ihe absence of exhibition of details of fixedassets audit could not ascertain and has beenadopted as per the format of accounts prescribed by Government of Indiavouchsafe the assets held by EPFO.Certificate of assets held in good condition, obsolete in consuHationwith CAG of India. Hence, the expenditure incurred on other items isand damaged was also not an record, reflected as revenue expenditure. This practice has been followed since inception of

the organisation.

J-~

•')

A.2.2 TDS of Rs.· 8.37 crore on Investment deducted and deposited in Income TaxDepartment, during 1997·98 to 2005-06 by concerned p8J1leshas not been recovered tindate. Non exhibition of the TOSas assets resultedin understatement of assets and liability bythe same amount.

A.2.2 The matter has been taken up with Chairper$Ol1,CaDT for refund of thesaid amount

·.60.2.3 Cash& Bank Balance

EPFO has obtained overdraft limit fromthe SBI and this includes the o~erdraft of Rs.277. 72 ~ore outstanding as on 31.3.2014 a.gainstthe overdraft rmit. Neltl'ier the over draft

. av~iled shouldhave been shc1Nnas loan ~nder liabilities nor .anydisclosure of ·1hishas beenmade In theAccounts. . . • .

···A.2.3 The format pf the 13alance Sheet of l;PFO· has been approved by theGov.emmentof UlCfiaIn consultation with CAG of India. Th«! said format has noprovisipn· for loan entry in liability side. Therefore, it is shown as minus balance inbank account in Assets Side of the Balance Sheet. . .

a. Income & Expenditure Ac.~tB.1 ... Expenditure·· .;An amount ofRs. 5.1.6 crore being.expenses ac;aued but not paidin the month of March hadnotbee,rdlsdosed·fn the 8CalUm. .

B.1 Since EPFO maintains the Accounts on cash basiS, hence these unpaid'expenses ~ve not been provided for. .

C Notes on Accounts and Accounting Policie.

C.1 The EPFO· have incorporatect few notes under the Barance Sfleerllncome &Expenditure Account which werenot comprehensive as detaied below:-:

(f) The EPFO have not disclosed the number of inoperative accounts and principalamount and interest thereon. . I C.1 (i) (Ii) The Annual Accounts of the EPFO for the year 2013-14 have been

prepared 8$ per the format of accounts prescribed by Government of India in(Ii) R.O.Delhi (South·Dwarka) has not disdosed an amountof Rs. 137.38 erare by the Iconsultation with CAG of India.way of notes to accounts in the subhead contingent assets as required underAcc:ounting Standard 29..

·:r~~:~~~iP~te~t': :rn.~~~~ny=~~p% ~~~.OOD:;~~~~it;~~"tY~C:.·.··..realisability of this amount alongwith interest hasnot 1~en made in the accounts. 1 .f!¥l:!:IlEl inve~!ment .!1la~~.iQ;;V~f.::P.fadesh,Fi(l8ncia/. COfPOl"atioR~tofRsi· 25·

crore is in default since April 2004. A writ petition (No. 1760 of 2011) has been filed inthe Hon'ble High Court at Lucknow to recover the defaulted amount alongwithinterest. The Hon'ble High Court has since ordered that the principal amount may bepaid to EPFO but the same has not been compiled by UPFC. Therefore, a necessarydirection has been issued to the field office to file a contempt petition in the saidCourt, The amount has been shown as part of investment. The fonnat of the BalanceSheet does not provide for disclosure of this fact.

(v) The format of the Balance Sheet of EPFO has been approved by theGovernment of India in consultation with CAG of India. The said format has noprovision to disdose such amounts. However, the present status is as under:

(v) Payment of interest of Rs. 787.741akh on investment from th& following parties isin default as per details below. Disclosure about the realisabilily of these amounts has notbeen made in the accounts.

(Rs in lakh)1. To recover the interest from MIs Pradeshia Investment Corporation of UP Ltd.(UP PICUP), a writ petition (No. 1759 of 2011) has been filed in the Hon'ble High J.Court at Lucknow. .

InterestS.No I Nameof establishment DefaultPeriod

1. I MIs. The Pradeshia Since

2.~.. ".-. "_",r -'. ; , -." ':•..•.;~~~..~ . .-:.",:- ..

•-;

•

(vi) Sub Regional Office. lal<flll Nagar had not disclosed capital commitments of Rs.89.891akh in the accounts.

Investment Corporation 2003 I 194.19UP Ltd_(UP PlCUP) (up to 1012011)

2. t MIs Richard &Cnuddas Since ~ 295.9.(RCl) 2002

3. I MIs . Bangal.are Since. r 113.60Mahanaaar Pallika 2004

4. . I MIs. PSIDC Since 6.162004.

5.. IHMT Machine Tools Ltd Since 171.27BIF~ case' 1996 . (up to 1012011)

6. IM/.s. HPSFC' Since 6.542007

.Total I . 787.74

- .-

- -

2. RCl has claimed to have paid8,23.39.6161- as full & final settlement whereas. asper SBI. RCL hadmade the payment of principal and interest not onthe dl!.e date butwith a time lag and thus It is Dableto pay interest for the delay in making payment.The interest amount of Rs. 2.95.97.745.40 Is ~ up to 31.93.2014. Therefore, it hasbeen decided to file a Writ Petition in'the High Court against the stay given by BI~in the said case.

3.. R~covery suit.which had 'been file~ in- iheCourt, ~as ~is~issed.· SBI. the thencustodian, was at fault.· Hence'SBI has .beendirected to pay the dues of MisBangalore' Mahanagar PaliJ<a • .

4. 581 Infonned that MIs PSIOO overdue interest on .~ccount. ~ pOstal delIJY isautomatically calculated by the system in the instant case as the Is~uer hashonoured their obligation by Paying' interest due and redemption aniovnt withdelayed period intetest amounts by:filing of suit Is bleak. S~l:has suggested to'examine the issues and the opliorl of waiver of delayed period of interest may beconsideted.

D. . General• •• ," 0"_ .~ ",_ ...•. _.: ..••• .'~:::.". ",',:"' • _ _ ,'" • _, •.• ~.::.: :.: •.:.::.::.:.:~~_ ••••. _._~,." ••• _ ••••~..•.•...• _ •.•.. : .•••. .:.. .....:. ...•• _... ..:~ .. ,;:.~~.:;:!:~:'J.:,;::.:7,~'7:.::;:·::;::-~:·,;,;:::~·::..'·· ,. ';,'.":' .•,:..- _f- ·-:-··.··.'·,"'7!'.~~l::~:::~;':':':~'~~:~.:::..·~:~~:::::::·:::·:~.';~;·:.1.7:':':"'".'1'<.,..~ .- ", .• - " ., .• -- .•. - •• ' .•.• -::~:~-:::~::::.-~- •.. ~' .. ---

!.1 Uniform "fOrmat of Accpunla: The Uniform Formal of Accounts prescribed by the 0.1 It has been persistent advise of C&AG to migrate the Accounting system ofovemment of India. Ministry pf Finance in 2001 has not been adopted by the EPFO. EPFO from present single entry Accounting system to Double Entry accounthoughagreed in ~OO7 theEPFP did not disclose definite time-frame for adoption of Uniform system. In order to achieve the said objective, the C&AG has engaged theormat of Accounts. The Uniform format of acc:ounIs was prescribed- by GOI, Ministry of services of Institute of Chartered Accountant of India - Accounting Research

Finance for all Aetononous Bodies to bring out transPiirency in Accounts and the Foundation (ICAI·ARF) which is likely to submit it report by March. 2015 whichorganizations were to adoptaccrual system of~. . will. inter alia. recommend the appropriate presentation of Balance Sheet and

receipt and expenditure aCcount. This presentation may have specificrequirement for EPFO which Willbe presented before C&AG for its approval 8sthe accounts of EPFO are to be prepared in a format approved byC&AG. Theissue of harmonising the annual account with the uniform format of account willbetaken at that stage.

5. Recovery suits have been filed in City Civil Court. Bangalore. HMT has filed anapplication seeking stay on further proceedings invoking section 22 of SICA. The'case is still pendingin the Court.

6. The matter ofwaiver of delayed period Interest of MIs HPSFC hasbeen approvedby CST EPF in ~s204th Meeting held on 26.08.2014 since the delaywas attributed topostal authorities.

(vi) Since EPFOmaintains the Accounts on cash basis, hence these unpaidexpenses have not been provided for.

IJ

0.2 Annual valuation: As per paragraph 32 of E~ployees Pension S~eme. ~995. the I 0.2 The 14th. 15th& ie" (Combined) valuation reportof the Employees' PensionUnion Government is required to get annual valuation of the Employees Pension Fund Fund for the period 01-04-2009 t031-03-2012 was completed and was placedconducted by a Valuer appointed I:!YJLJIle.'taLuation exercisefor the year 2009·10. 2010-11

M

•J

••

~

and 2011-12 has been carried ourby the appointed Valuers and the combined actuarialreport is yet to be accepted by the Board. The valuatiOncarried out for the years 2009 to2012 and pending valuation for the years 2012-14 could have an impact on the liabilities ofEPFO. The present status of the valuation and its impact on the accounts .has not.beendisclosed in the accounts. ..

before the CBT.EPF in its 204ln me-etlng held on 26V1 August.2014. The Boardafter deliberation has recommended that the report of Actuary be referred to theFIAC to examine the reasons for fluctuations In the surplus/deficit as brought outin the actuarial report. Accordingly, the report of the Actuary was placed in the115" meeting of FIAC held-oo 11.11.2014. FIAC has recommended that theCombined Actuarial Report for 141h, 15'" and 16" valuation for the period 31-03-2010,31.03.2011 and 31.03.2012 as presented by MIs. -K.A Pandit, Actuary maybeaecepted by Board. In respect of. valuation for the year 2012·13,1he·ACtuaryhad been appOinted and the report is expected soon. The Central'Governmenthas also conveyed "the ~ppointment of Actuary for the year 2013-14 and 2014-15on 03-12·2014 to .ensure tIlat the v~lulition exercise is .brought upto ~te in thisfinancial year.

0.3 An amount of Rs.· 415.29 crorewas shown asminus figure agailist Cash In BankInEPF Balance Sheet Minus cash balanceIndicated overdraft: Exhibition ofmiJ'\utl balances.Isnot ln consonance with the accepted principles of aCCOllntingand resulted in understatementof liabilities and assets. .

Similarly an amount of Rs. 330.28 crore was shown as minus balance against CashBook Balance Contribution Account in the Balance Sheet of Employees Pension Schemeinstead of bank overdraft. This resultedin understatement of liabilities and assets.

0.3 The minus' balances of Rs. 415.29 crete and Rs. 330.28 clore exhibited inEPF Scheme and EPS is aCtually Ca~ Book b.alances. Under 'I':"ew FUf'!d.Management System' (NFMS), the daily dosing Bank t;alance In respect of AleNq.1 (EPF) and A/c.No.10 (EPS) is on-line transferred to the respeqtive Central .Investment Accounts lealling a 'NIL' balance in the account Due to this, thecheques issued by the field offices which have not yet been presented forpayment results into negative balance In the Cash Book of Alc No.1 & Alc No.10of field officeS. In fact. a negative balanc;e~hows optlrnum utilization of the Fundas lead time between the issue of cheque and corresponding debit of theaccount is used by the Organisation without actually providing for Fund equal toit and the same Fund Is invested during that period for enhancing the earnings ofthe subscribers. Moreover. cheques issued are debited immediately In the Cash.Book whereas debit is given by Bank later. Thus. the minus balance in CashBook is not a minus balance in Bank Account. which is being shown In assetsside due to format of accounts prescribed by the Government of India asapproved by the CAG since inception.

E, ... ~rl~~ICr~~~s;~roVid·~~t 'F~ndOr~miaiiO';i7i'::;:;~I~lyi~~~" by~~~Ptii':f}61ri'T'E:N'6COrTl;ne~is. being facitiaf::-=::·::::-':~·=·:7::.;--- --," .. -. '-:::':::::::~: r.: :- ..±the contributions and from the levy of administrative charges. No grants-in-aid were receivedby the organization from the Government of India duringthe year 2013-14.

~7

•)

""

F. ManagementJetter

Deficiencies which havenot been included in the Audit Report have been brought tothe notice of the Central Provident,Fund Commissioner, EPFO through a management letterissued separately for remedial/corrective action.

v. , Subject to our obsen.:aUonsin the preceding paragraphs, we report that the e~lanceSheet, Income & ~ndlture A~unt and'ReceiptS & Payments Account dealt,with by thisreport are in agreement with the,bookS of. accounts~, , ,

vi, In our,opinion and -to the best of our infMrlatlon and 8(:!::Ordingto the expl!lnationsgiven to us; the sai~ financial statements ',$ubject to the. QbservatioJi and otber significantmatters stated above 'and in Annl;lxure to .this Audit.' Report !liVe, a true and fair view inconfo~1ty withthe Bf?COu~tingprinciples g~nerallyacce~t.d 1~,lndia, '

a" ,In so far as it r.tes to t,heBalance Sheet, of the stat~ ,ofaffairs of ,the Employees"Provident Fund.Organization as at 31 March ~014;alid '

b. and in'so far as it relates to Income'& Expenditure Account of the surplus for the'year ended on that date. ' , '

F. Deficiencies observed by the C&AG have been noted & corrective actions arebeing taken.

v, NoComments, bein,gfactual.

vi. NoComments, beingfactuaV Audit Certificate

.-

~r -::-:;'" ~ :~' .r -;.•.. -..; ,

Place: New DelhiDate: 19·12·2014

2-8-··.~·,'"'~.~:~.;:~:-:;i;;:c:t:···· ;~"""''-'-.~'1',.'_-,0; •••.••.. - .. ', - . " •••.•. 't.~._"._w" ::":"::·•.~::·.-:·:=::7··..:=:~::~.:~·

'For andon behalf of theC&AG of India

SdI-Director Generalof Audit

Central expenditure

-.-- ..•:.•..: - : -.~ - .

\

~')

Annexure to the S,parate Audit Report

,"I

....Separate Audit Report (Annexure) - Observations . Comments of the Organisation

" .',.1. Adequacy 'of Intimal audit system . . .

1. . Out of th~ total 130 units, intemai, alJdIl, of 130 un1t&..were 'planned and .\audit of only 88 units completed.· 1.2. .: Proper follow .uP action \\Ias not taken to get "e objections settled as7179 intem'al audit paras..,. outstandi~as on ~·t3.2014; -"-per intemat Eiuditreport recoveries of Rs 15.39 I~khwere pending in respect SRO Laxmi N~fgar. .-

'. .: . ..... -,

The target c:ooidnot be' aehieved due to 'shortage of manpower in theAudit Wing. . .

2. The field affices have been suitably dir~ed for compliance of audit paras.RPFC head~ committee has been for~ed to recover irregular payments. .

• The records are being maintained at field offices and the same are beingverifiedlaudHed by AGs of the respective States

A new'system of "Audit Committees· has been put in place in the current. financial year for settlement of audit

Instructions had been issued to all the Internal Audit Parties and RegionalP.F. Commissioners for recovery of such payments.

2~ Adequacy oflntemal control SystemMonitoring

..•

• In the absence of Regional OfficeJFleld officewise details of assets e.g.fixed assets, inventories, loans and advances, current &abilities, the reconciliationof the.items as'per financia' books with subsidary recordswas not feasibte. Thus,internal control about reconciliation Of assets and liabilities was deficient to thatextent.

• 42 external audit paras pertaining to period 2013.-14 in rlo EPFO hqrs I •

were outstandinQ, .\ .

• A regular increase in the over payments indicates an inadequate I •monitoring in the organization.

._- .,-,..,

3. System of physical verification of Assets

• The physical verification of fixed assets of EPFO Hqrs for the year 2013-2014 had been conducted.

• The physical verification of fixed assets of Regional office Dwarka{except computer and accessories)and SRO Laxmi Nagar, Delhi for the year I •

2013-2014 had not been conducted

• The physical verification of fixed assets of R.O. Madurai and R.O.Coimbatore had not done for the year 2012-13 & 2013-14. I •

2-7

1.\

• The physical verification of computer and accessories of EPFO Hqrs. hasarso been completed.

The physical verification of fixed assets in respect of Regional Office,Owarka and SRO- laxmi Nagar, Delhi is underway and the same will becompleted in a time bound manner.

The physical verification of fixed assets in respect of Regional Office,Madurai & Regional Office, Coimbatore is underway and the same will becompleted onan immediate basis.

._ .. 't!:c:.,':;-

•')

y •

.7

4. System of physical verification of Inventory• Physicalverification In respect .of books,publications andstationery andconsumab/es hasbeen conducted upto 2013-14 In respect of EPFOHqrs as wenas R.O. De/hi (South) and no material deficiency was reported..• Physiea!verification larespect of books,publications andstationery and. totisumabies of SRO, Laxml Nagar,. Delhi had been cOnducted··Up to the year2012-2013. ....• The physical verification of inventOl}' ·of R.O. "Madurai and RO.·' •cojmbatore hadnot done for the year-2012-1'3 & 2013-14.

• No Comments, being factua/.

A Committee has been constituted for physical verification of inventory atSR.O, ~",mrNagar far the year2013-14. : . .

•

The physical verification of inventories in respect 0( Region~1 Office,Madurai & Regional Office, Coimbatore Is underway and the S8!lle wiU beCompleted Ina time bound manner. .

5. Regularity In payment of statutory. duea I• As per accounts;" no payment over sixmontli In.resped of statutory dues • No Comments. being factual.was outstanding as on 3~ .3.2014.

1 1I

30

......, ":':";':,:~;:;.:;.:~:':::~::.~::~·.::~::2::~~::;~\·,:·:~!~'':'·.:--."~r .. ". ". -~~~:::7.::'::~:::::':-::~.:':::'.~~'::T::::::~'~':-":~~",- ..... '::~---:'-"":-"".- .~~~"-':~;;~

ITEM No Views of the CBT,EPF on the 14th 15th & 16th (Combined) ValuationReport of the Employees' Pension Fund as on 31.03.2012 - Reportsubmitted by Mis. KA. Pandit, ConSUltants & Actuaries, the Valuer,appointed by the Central Government

The FIAC may kindly recall that the 14th15th& 16th (Combined) Valuation

Report of the Employees' Pension Fund as on 31.03.2012 - Report submitted by MIs. K.A

(

Pandit, Consultants8rActuaries. the Valuer. appointed by the Central Government was placed

for consideration of the CBT,EPF in its 205th meeting held on 19.12.2014.

2. To briefly recapitulate Para 32 of the Employees' Pension Scheme. 1995

mandates an annual valuation of Employees' Pension Fund by a Valuer appointed by the

Central Government. The Central Government vide letter No. R-150111212004-SS.11 dated

15.11.2012 appointed Mis. K.A Pandit, Consultants & Actuaries as Valuer for 14th, 15th& 16th

Valuations of Employees' Pension Fund as on 31.3.2010, 31.03.2011 & 31.03.2012

respectively.

3. The appointed Valuers have submitted the report on 13.01.2014, the same was

forwarded to Central Government on 02.04.2014. The Central Government vide letter No. R-

15011/212OO41SS-11 dated 22.05.2014 (copy enclosed) has directed that the 14th, 15th & 16th

Valuation Report may be placed in the next meeting of Central BOard of Trustees, EPF. The

surplus/deficit revealed in the Valuation Report was as under:-

As on 31.3.2010 5,162.38 crore (-)

As on 31.3.2011 12,989 crore (+)

As on 31.3.2012 10,855 crore (-)

4. The deficit as revealed in the 13thValuation as on 31.03.2009 was Rs. 61,608

crores. Whereas, in the 16thValuation Report as on 31.03.2012, the deficit has been shown

as Rs. 10,855 crore. Therefore, a decrease in valuation liability of Rs. 50,753 croes has been

revealed in the current report as compared to 13th Valuation Report. The Valuers have

recorded in the Report that net liability or deficit of Rs. 10,855 crore in terms of present value.

is less than 4% of the total liability and is not a matter of concern, though it is recommended

that, EPS should look -

into investment return more carefully and there are no increases in the benefits without

consulting Actuary. It has also been suggested that sensitivity analysis is carried out more

C frequently. It has been acknowledged in the report by the appointed Valuers that the quality

and quantity of data supplied for the valuation is improving and represent EPS census.

5. The report was placed, discussed and deliberated in the 33111 meeting of Pension

ImplementationCommittee held on 25.7.2014. The committee recommended that the report of

valuation of the EPS presented by the actuary should be placed before the Central Board of

Trustees, EPF for acceptance.

6. Subsequently, the report was placed in the 204111 CBT,EPF meeting hetd on 26'"August, 2014 and the board had decided that the report of the actuary on the Employees'

PensionFund be referred to the FIAC( Finance InvestmentAudit Committee) for examining:-

i) The reasons for substantial fluctuations in tN: surplus/deficitas brought out in the actuarial reports;

ii) The terms of reference of the actuary appointed for conducting

the valuating of the Pension Fund.

7. The matter was placed in the 115111 meeting of the FIAC held on 11.11.2014 at

EPFO, Head Office. After detailed discussion the FIAC noted that the valuation data provided

for the valuation as on 31.03.2012 was more reliable and comparatively of better quality.Therefore. the qualitative result was more reliabte. The data for valuation of the previous years

was inadequate and hence there was fluctuation in the valuation result. The FIAC

recommended that combined Actuarial Report for 14111,15111 and 16111 valuation for the period

31.03.2010,31.03.2011and 31.03.2012 as presented by MIs. K.A.Pandit may be accepted by

the Board.

8. Therefore the Combined valuation report was placed in the 205111 meeting of the

CBT,EPF.The Board had directed that the matter should be further considered by the

RAe to analyze in detail the reasons for variation in the valuation results in the 14th

through 16th report along with the reports of subsequent years.

Proposal: In view of the recommendation of the eBT the 14th, 1sttt & 16th the -

Valuation Report of the Employees' Pension Fund for the period

01.04.2009 to 31.03.2012 is placed for consideration.

..Tel.: (91-22)42922231

(91-22)42922250(91-79) 2646 0734

E-maH: kapandit@vsnl.comWebsite:www.ka-pandlt.com

'f.." ,P~~S:tO.UANDrT ,B.sC., \;L.B.,A.IA (london), F.lAI. (00131)APPR0VED VAlUERREGD.NO. :CATIX-3OF .1988AKSHAY PANDITB.Sc., A.IAI. (00300)

M.G.DIWANM.Sc., F.IA(london), F.l.1.I.,F.lAI. (00053)

N.K.PARlKHM.Com., LLB.,A.IA (London), FJAI. (00132)

P. I. ft'AJMUDARB,F"'" F.IA (London), F.C.I.I.• F.I.I.1.,F.lAI. (00109)

ESTD: 01-C12-1943 MIS. K. A. PANDITCONSULTANTS & ACTUARIES

(ISO 9001 :2008 CERTIFIED)

........................................................................................................ ----

Employees' Pension Scheme, 1995 (EPS 95)

Report on the Actuarial Valuation

14th, 15th and 16th (combined)-.

As at 31.03.2012

Churchgate ; 2nd Floor, Churchgate House, Veer Nariman Road, Fort. Mumbai - 400 001 .• Fax: (91-22) 2288 3155Offices: Andheri : lO1/C, Remi Bizcourt, Off. Veera Desai Road, Andheri (W), Mumbai - 400 058 .• Fax: (91-22) 2673 3638

Ahmedabad: 509, Golden Triangle, Near Sardar Patel Stadium, Navrangpura, A'bad - 380 014.• Email: kapabd@vsnl.net•• PRINTl=n nN l=~n_I=AII=•••nl v DADCD ••

I.f '

"M;S. K. A. PANDITCONSULTANTS 81 ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) esrn: 01·02·1943

ContentsPurpose ..••..••••...•.•••.•...•.••..•. :.••..••..••....•••..••.......•..••.•...•....•.....•..•.••...••••••••••••••••••••..••••.•.•••••.•.•.....••... 5

Active Members .•..........•.........•...........••.....•....•.....•.••..•.•.......•....•.•...•..••••..•••..••.•••...•••.......................... 5

Current beneficiaries ....••.•..•..••.•......••.•.......•................•..............................•.....•..•....•..................••...... 6

.Deferred members _..........................................•...................•••.••..........................•.................. 7·

Data Projection .•..••••••••.••••••..••••.•••••••••••••..•••••..•....••..............................•.....•......................•...........• 12

Scheme History & Benefit Details ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••17

Benefit Details under EPS,1995 •..•....•.•.......•.........•.........................•....••.....•...•••••••.•.••.......•..•..•.......... 18

Eligibility Criteria ..•...........................•..•..••.•.•.....•...•...•...•...........•..•...............•....•...........•....•....•.•......•. 19

Benefit Scheme Formula ,.........•.....••..•....................•......•••.•....••....•.••....•......................... 20

Valuation App~.QaCh and Assumptions •••••••.••••••..•••••...•.•.....•....•....•...•.•..•..•••••.•••••••.••....•••...•..••••..•••. 23

Investments ...........••........••..•.••...•..•.•.....•.•.•...•••................•..............•.......................... 23

Discount Rate ..•.....................•.••....••..•.••.•.•....•.....•........ : .............................•........•............................. 23

Salary Escalation ................................•• :•.•...••.•.•..•••.•..••....•...••.•.•.••....•....•..•..••..•..••............................. 24

Withdrawal Rate .....•.......••.•..•........••....•......... ~..........•.•....•..............•.•..• :••.•...•.•.•..••••.......••...•........•.... 25

Mortality ................•.................•........•.•.....•.....•.•...•...•.•.•..•...............•...•...........•..••..••.•......•.....•....... ;.•,25·

Other minor assumptions ......•.................................•.......•.........•......•.•...•••..•••...••.••..•..•..................... 26

Valuation Approach ..........................•......................................•...........•.....•..•.••.••....•......•....•.•........... 26

Assumptions Summary ...................................••........•...........••........•.•.••....••.••.••.•.•.••••.•........•............. 28

Valuation ResuJts ........•..................•...•..........•.....•........•...........•.•..••.....•.•.•••••••.•••..•..••.••••.•.......•.....• 29

Conclusions and Suggestions •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••30

Other observations and methodology.. 32

'7

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 2

'01'

f'''--.....,,)MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02·1943

Employees' Pension Scheme, 1995. (EPS 95)

( i Executive SummaryWe have been asked to prepare a valuation report for EPS-95 as on 31.03.2012, for the

purpose of valuation data was supplied to. our office electronically, the quality and quantity

of data is improving and represent EPS census. Valuation has been made in respect of 8.55

crore members and 0.41 crore pensioners and beneficiary pensioners. While data in respect

of 1.90 crore members and 0.41crore pensioners and beneficiary pensioners was foundcomplete for the purpose o{~~l~~tion~"'balance"'~iata"was'''extrapolate(rfor-iilc--pufpose of

valuation. EPS has been designed to pay pension to.each member from age 58 with accrual

rate of 1.43% for each year of contributory service. Contributions is collected @8.33% of

salary out of the employers' contribution to the provident fund account and Government is

contributing @1.16% of the salary subject to the salary ceiling of ~6,500.Majority of the

subscriber's contribution is coming with a salary ceiling of~6,500.

Membership is mainly divided in four categories, .

1) Active Members, are the members who are current contributors, and are entitled tobenefit in future;'

2) Current Beneficiaries who are getting pensionary benefits, and no future contribution is. -

expected from them

3) Members entitled for deferred benefit-and who have opted for scheme certificate

4) Members who are entitled for withdrawal benefit but have still not claimed the benefit,

these are referred as Dormant Accounts this category is very large in number. Noappropriate data is available in respect of them.

Investment of the fund is made in the manner that the returns are secured and maximized,currently the return on the fund is over 8.5% p.a.

All Actuarial valuation assumptions will lead to pace of funding and it is essential to make

reasonable assumptions to estimate the cost of obligation. Four key assumptions are Rate of

Discounting, Rate of Future Salary growth, Mortality and Attrition. All these assumptions

were discussed and consensus was arrived at after series of discussions with EPFO before

Employees' Pension Scheme, 1995:Actuarial valuation report as on 31stMarch, 2012. Page 3

.",,"! ~.

,"",-,:~~'"

'MIS. K. A. PANDITCO~SULTANTSBeACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED)

. '. .eeeESTD: 01-02-1943

finalizing valuation results. Table below gives a snap shot of valuation results and data used

for valuation.

( Active Members 32,766,321 Date of Valuation 31.03.2012

Active Beneficiaries 4, l{)3,014 Present Value of Benefits 322,602.79Deferred Beneficiaries! DormantAccounts 52,733,679 Present Value of Contributions 149,967.38

Future Salary Rise 7% Corpus 161,780.08.__ .... ............................ ...................................................•......... __ .... _..._-_.,.. ... - --.- -

Rate of Discounting 8% Net Liability 10,855.33All liability figures are in f Crores

Net liability or deficit off 10,855.33 Crore in terms of Present Value, is less than

4% of the total liability and is not a matter of concern, though it is recommended

that, EPS should look into investment return more carefully, do not increase

benefits without consulting Actuary and do sensitivity analysis more frequently.

Also should try and capture more data which can be used for valuations. Make a

detailed study of dormant account and decide on the approach and assumptions of

these accounts

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 4

" .~

)- ..... '",'-"-"

MIS. K. A. PANDITCONSULTANTS I ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) esrn : 01-02-1943

(Purpose

Purpose of the valuation is to arrive at a discounted value of income and outgo using appropriate

method of valuation using fair assumptions.

There are various methods that can be used to project and discount future benefit outgo and

future contribution income, the method considered by us and detailed in this report, is the cash

flow method. For the purpose of ·valuati·on~···we····h3ve····made····financiat····and·-demographic

assumptions, the method of selection of these assumptions is also detailed in this report. For

the purpose of valuation we have been provided with d~ta in respect of existing members who

are entitled to the scheme benefits in future and members! spouse who are in receipt of the

benefit.

As per the information given to us the total membership of the EPS 95 Scheme.as on the

valuation date is 8.96 crore (including .42 crore pensioner and beneficiary pensioner) which are

mainly divided in to four main categories of member in the scheme:

Active Members

This is the set of employees who are contributing members of scheme as at valuation date and

... who ate entitled to various. benefits under the scheme which are accrued to them and wi1l be

accruing to them in the scheme with future contributions till they are .in active phase. As

informed to us there are 3.28 crore active members. The data in respect of about 1.90 crore active

contributing members was found consistent and complete, this data was suitably projected to

3.28 crs. The data was further bifurcated for members for whom contribution is made on salary

without cap of ~6,500. pm and for employees whose contribution is made on salary with cap of- .

~ 6,500, The summary of the data is given in table here under

7

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 5

MIS. K. A. PANDITCONSULTANTS. ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) esm. 01-82-1943

Table l(a}

3,50,85.08

ActiveEmploy~distribntion with criteriawitb condition on EPS salary as on date of( . . valuation

Sut,.:Category -1\ctive·MembersNumber of Active

members

AdiVe Member with·EPS Salary without ~p of6500 . 271,288

EPS Salary(lnLacs~

.. AdiveMember witJf~PS Salary ~ppedat6500 18,737,274 71,54,21.87

...r.~~,~..'-O?) _.__._ __Data

.Cafe20ry Projected data Provided

Active Members32,766,321 19,008,562

Ratio 58.01%

Current beneficiaries

These are the set of beneficiaries who are currently in receipt of benefits and expected to

continue to receive benefits into the future including the death benefit to spouse or dependents.

Considering the condition on receipt of future death benefit we sub-categorised them' in to

"Member Pensioners" & ..~'Family and Beneficiary Pensioners" for valuation purpose.

"Family and Beneficiary Pensioners" are those members who are currently in receipt of benefits

and expected to continue to receive only beneficiary pension as dermed under the scheme .

and Member Pensioners are those who will be eligible for pension payment till they are alive and

on their death beneficiary pension is payable as per scheme.

Table l(c).

Monthly PensionCateaory Total Count (lnLacs~

Member Pensioners 2,697,854 23,633.94

Famlly & Beneficiary Pensioners 1,405,160 10,983.45

Total 4,103,014 34,617.39

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 6

MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) EITD : 01-02-1943

Deferred members

3) "Scheme certificate of dormant account holder"

These set of members are members who have left the employment but are eligible for benefit on

attaining pensionable age (Scheme certificate). As per information given to us these members

comprise of 25% of the inactive account and the same works out to 1.32 crore members. The

age, salary and service profile for the members were not available while projecting the data. As

they have become in-active out of the active ~~~~~~~PL~~~~~?)~..~~ ..~.~~.~~..~~!.~~~_.P!.~.rtl~__ __of these members will follow the profile of the active members as to the age, service, salary ...

4) "Withdrawal benefit of dormant account Holders"

These are the members who have left the employment in the past and assumed to be entitled only

to the withdrawal benefit as per scheme of EPS 95 and have still not claimed the same. There are

3.96 crs such members.

Relevant data like salary and past service for these members was not available, so an

approximation based on the average payment as per the current statistics made by EPFO to such

members is considered for valuation. As per the statistic provided to us, this payment is

considered to be f 7,533 per person. It is also noted that there are members under this category

who have not claimed their benefits since last several years, and it is.likely that. they may not

claim this in future, though on a conservative basis, it is assumed that all these 3.96 crs members

wil1 claim their benefits over next 10 years on straight line basis .

. .a). For each category mentioned above except category of "Withdra:wal benefit of dormant

account Holders" ,validated data specific to age cohort is extracted for projection

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 7

IIr>.'b.."....

MIS. K~A. PANDITCONSULTAN " ACTUARIES(ISO 9001 :2008 ERTIFIEO)(ISO 27001: ' CERTIFIED)

I

I

ESTD : 01·02·1943

Table 2 (a): Active MemberActive members with EPS Salary capped to to ~6,500/-

No. ,Of .". No•.OfEmploye Salary x Total Employee Salary x

~e es Service Salary Age s Service Total Salary18 71,514 735.03 1,986.33 39 469,647 148,745.07 19,303.43

19 272,977 2,743.96 7,666.41 40 449,160 154,589.67 18,415.6011,420.01 41

.... "451)22""" "'T68:064'~9(r ..····fS»7:{89·····"'-'-'--20 407,641 5,305.7021 526,875 27,716.43 14,908.08 42 394,032 155,987.80 16,439.8922 633,348 38,473.91 19,021.21 43 452,870 183,054.75 18,131.14

23 803,395 51,656.01 ~4,607.56 44 360,273 167,281.39 15,393.0324 742,657 52,642.90 ~3,748.68 45 364~793 179,598.33 15,576.5425 782,338 60,857.74 ~5,753.40 46 323,787 169,367.18 13,925.7526 778,202 66,312.43 ~6,738.88 47 295,121 167,934.44 13,029.4027 784,696 74,992.26 ~8,000·.OO 48 315,420 185,013.35 13,567.6528 821,916 87,525.17 ~9,640.43 49 267,881 171,410.86 12,043.0929 742,379 90,213.46 ~8,185.61 50 245,629 168,406.88 11,176.7830 699,872 95,939.97 ~7,397.39 51 236,579 170,075.08 10,949.0431 708,059 107,123.75 ~7,6.16.31 52 197,726 155,327.16 9,372.0632 629,984 107,569.09 [25,099.45 53 217,978 174,521.18 10,108.0133 755,614 134,952.59 128,597.10 54 177,273 158,231. 01. 8,709.9634 562,630 121,757.11 123,143.14 55 167,657 156,641.26 8,240.6935 572,191 131,263.21 t22,882.37 56 146,43Z· 144,536.99 7,324.0736 539,927 135,677.22 121,777.49 57 163,672 153,752.27 7,479.84 .

.' . ·37· 535;088 145A03.56 ~1,855.14 58 123,078 127,758.15· 5,979.0838 539,741 155,447.72 121,537.94

Total No. of Employees 1,87,37,274 Avg. Past Service 6.33 yearsAvg. Past Service(Weighted with

Total Salary (In Lacs) et.15,42 1.87 Salary) 6.93 yearsSalary x Service

Avg.A2e 34.07 years (In Lacs) f .4,954,607 .02. Note: Here "Service x sakv" is calculated based on validated sample data shared electronicallv where DIISt service & EPS salarv is calculated individuallv.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 8

•.•......

MIS. K. A. PANDITCONSULTANTS BeACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02-1943

Table 2 (b): Active MemberActive members with EPS Salary not capped to ~6,500/-

In Lacs '.' In Lacs

No.Of Salary x Total No. Of Salary x TotalAge Employees Service Salary Aee Employees Service Salary18 163 6.13 12.69 39 8~949 9,168.38 1,140.15

19 377 17_92 35-48 40 8,930 9,875.11 1,160.9220 624 47.11 58.26 41 9,204 10,387.98 1~145.13

21 813 57.83 74.25 42-··········8,410-··········-10,46053-······-1-;-1-1-0,78··· .22 1,454 124.70 136.08 43 9,024 11,899.34 1,209.26

23 2,362 239.i6 239-40 44 8,333 11,584.73 1,109.1324 3,003 371.66 313.62 45 8,434 12,714.14 1,157-47

25 4,112 589.35 412-43 46 7,842 12,754.94 1,116.2926 5,101 991.17 515.74 47- 7,589 12,526.04 1,069.8727 6,445 1,761.56 648.16 48 7,718 14,027.78 1,142.9928 8,309 2,717.46 859.47 49 7,193 13,499.88 1,055.6429 8,665 3,456.91 924.56 50 6,809 13,045.14 1,031.28

30 9,052 3,974.75 954.56 51 6,617 13,261.64 1,005.4331 9,530 4,742.53 1,037.16 52 6,111 12,959.57 983.5232 9,636 5,487.36 1,112..16 53 6,310 13,594.37 1,014.87..33 10,210 6,308.56 1,142.24 54 5,945 13,393.44 957.1834 9,532 6,414.77 1,105.28 55 5,629 13,232.92 946-4535 9,597 7,310.75 1,157.90 56 5,088 12,369.23 845.9236 9,310 7,386.00 1,114.17 57 5,2~3 13,102.80 893.2137 9,627 8,410.18 1,161-43 58 4,370 . 11,707.07 787.36.

38 .... 9,.578. 8,971.20 1,187.20

Total No. of Em lo.ees 2,71,288

Total Sala ~35,085.0839.92 ears n,14,952.17

Av •Past Service 8.86 ears

8.98 years

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 9

M/"S. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ssm: 01-02-1943

Table 3 (a): Current BeneficiariesThose currently in receipt of benefits and expected to continue to receive benefits into thefuture including death benefit. Tiley are named as beneficiaries with "Member Pensioners"

No. of Total Monthly•Age Members Pension(in Lacs)

Lessthan.andequal to 55 2,32,703 2,268.50

56 92,391 763.8957 1,05,453 868.2758 1,09,488 868.2459 1,37,493 1,367.1260 2,09,745 2,527.3661 2,38,173 2,782.7962 2,18,568 2,401.8063 2,21,900 2,172.3864 1,84,836 1,725.4365 1,67,522 1,437.8666 1,42,011 1,080.46

67 1,18,115 825.96-

Total No. of BeneficiariesTotal Monthly Pension (In-Lacs)

Avg.AgeAv~. Monthly Pension

- No. of Total MonthlyAge Members Pension (in Lacs)

68 99,296 624.7669 ......??~?.~.~....... 438.45

••• ~ •• 04 .~ •••• ~. ......................................................70 68,665 332.5071 60,814 253.21

• 72 47,525 200.0173 46,810 200.1474 35,964 155.5675 29,320 127.1776 20,291 85.4877 15,088 62.7678 9,583 38.7179 4,377 17.43

80 andabove 1,978 7.70

26,97,854f23,633.9462.80 years~6:03

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 10

MIS. K. A. PANDITCO'NSULTANTS a ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED)

Table 3 (b): Current Benef"lciariesThose currently in receipt of benefits and expected to continue to receive this benefits till

their death. They are named as beneficiaries with "Member Pensioners"(

Ii No. of TotalPensi()D... ·.Age MelDber'S ·(InLacslLessthan.andequalto25 5,12,616 1,865.96

26 3,682 20.7027 2,176 19.4028 2,285 23.5829 2,583 29.4130 2,948 35.7531 3,569 43.2332 3,951 49.7133 5,247 65.4734 5,440 67.9735 6,337 79.0336 7,067 89.3137 8,600 108.9938 10,431 132.3039 10,298 133.25 '.

40 11,535 147.8741 13,364 173.34 -42 14,129 177.80

. 43 17,927 ·228.2444 16,739 216.19

.. 45·· 19,711· 254.3946 20,073 258.10

I- 47 21,932 281.9248 27,108 339.58

49 25,415 320.04

-No. of Total Pensioni\2e Members (In Lacs)

50 26,638 327.0551 30,215 364.55..---_._.- ............. __ ......... - .. .................. _--_ ..... _--_ ....... - .........52 28,682 339.0453 40,668 460.5854 30,972 348.3255 34,778 374.7356 32,698 342.1257" 34,215 346.6658 41,148 389.4059 31,801 296.3760 29,789 267;8361 31,207 268.3962 25,148 206.7163 43,857 332.3964. 20,297 156.1565 20,923 1?3.0266 19,242 140.34-67 15~85 106.2868 21,442 148.0669 10,856 72.0970 9,484 63.3871 9,733 62.4872 6,713 42.4573 12,621 83.30

74 andabove 21,585 130.23

14,05,160fl0,983.4541.57 years

f781.65

Total No. of Bene{iciariesTotal Monthly Pension (in Lacs)Avg.AgeAV2.Monthly Pension

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012 .. Page 11

MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02-1943

Data Projection

c Based on this sample, after a careful study of the exits on various counts from the EPS Scheme, a

projection was made to arrive at the estimate of information of all members in respect of age,

salary and duration since entry.

Grap~ical mustration for Data Movement

Graph 1Employee StreDgtla Distribution for each _.o\ge cohort on projected data

With Salary restricted to ~ as on 31.03.1012

.......................................................................................................... -._ ..

l)JC(J.Ll) 1111111• Average Salary2012

Average Salary Distribution(Salary less than or equal to {6,SOO/.)

s.ooo.oo

Age

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 12

MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED)

(

'.' " \. ~ .

• Average Past Service 2012

esm. 01·02·1943

rapEmployee StreDgtb Dbtribudoa for each Age cohort 011 projected data

~1th Salarymore diu ~ as 0Jl31.03.2011

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 13

Average Salary Distribution(Salary more than ~6,500/·

~ t ~_.•QOO_OO;;"'"

• Av('~£)!' ~I.IIf)'

2012t w.nfillHI 11.11.1111,.1.1.~ -, »,ill).) ,~) •

Age

Gr.ap1a3 .Average past Senice DistributiOil for each ·Ageco1aort OD Projected Data

For employees with Sabry restricted to ~500 as OD 31.03.20U

Average Past Service Comparison_ 24

})

)() ,

IS

" 16~r4~ )J

~IO

. ~ ... IIIIIIIII~IIIIIIII 1Age

MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD:l)l ..02..1943

Table 4 (a): Projected Active MemberActive members with EPS Salary capped to ~6,$OO/-

( ....

N().Of. ~baryx. ...TotalAxe EmplilYee$ service" Salary18 123,273 1,216.33 3,287.0019 470,549 4,540.75 12,686.5020 702,678 8,779.96 18,898.0221 908,209 45,865.57 24,670.1222 1,091,744 63,667.23 31,476.6023 1,384,865 85,481.15 40,720.9724 1,280,167 87,114.28 39,299.6825 1,348,568 100,708.36 42,617.1426 1,341,439 109,734.90 44,247.9427 1,352,633 124,098.41 46,334.8628 1,416,791 144,838.01 49,049.4429 1,279,688 149,286.66 46,641.9930 1,206,416 158,763.00 45,337.6431 1,220,528 177,270.03 45,699.8932 1,085,945 178,006.97 41,534.9633 1,302,502 223,32i.66 47,322.9234 969,843 291,485.64 38,297.6535 986,324 217,216.51 37,866.1236 930,708 224,520.79 36,037.7337 922,367 240,616.18 36,166.2438 930,387 257,237.22 35,641.30

N()~·or Sala..yx TotalAge EmploYee$ Service Salary_39 809,562 246,145.77 31,943.6440 774,247 255,817.45 30,474.4341 788,144 278,116.62 30,901.85

\

42 679,219 258,131.02 27,204.9943 780,642 " 302~92l":85"""30;003":69"""44 621,027 276,820.10 25,472.6545 628,818 297,202.18 25,776.3046 558,133 280,271.40 23,044.5447 508,720 277,900.74 21,561.2648 543,710 306,162.79 22,451.9449 461,764 283,653.23 19,929.0850 423,407 278,682.35 18,495.5151 407,807 281,442.96 18,118.6552 340,833 257,037.51 15,509.0153 375,743 288,800.28 16,726.8954 }.05,577 261,842.96 14,413.3755 289,002 259,212.87 13,636.8556 252,415 239,}82.51 12,120.01.57 282,132 254,431.42 12,377.7458 212,158 211,416.47 "9,894.29-

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 14

,.. "'. ,r-...'

MIS. K. A. PANDITCOASULTANTS BeACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED)

(

ESTD: 01·02·1943

Table 4 (b): Projected Active MemberActive members with EPS Salary not capped to f6,500/-

IoLaeS .'. , In Lacs

No.or Salary x T9tar .' No. Of Sa)aryx TotalAge Employees SerVice Salary· Age EmplOyees SerViCe . Salary18 281 10.15 21.00 39 15,426 15,171.99 1,886.7419 650 29.66. 58.72 40 15,393 16,34123 1,921.0720 1,076 77.99 96.44 41 15,866 17,190.69 1,895.0421 1,401 95.67 122.84 42 14,600 17,309.89- .---1~838:09----

22 2,506 206.32 225.16 43 15,555 19,690.87 2,001.0723 4,072 395.98 39620 44 14,364 19,170.40 1,835.3824 5,176 614.97 518.93 45 14,538 21,039.20 1,915.3725 7,088 975.25 682.48 46 13,518 21,107.42 1,847.2826 8,793 1,640.22 853.46 47 13,082 20,728.82 1,770.48

27 11,110 2,915.14 1,072.63 48 13,304 23,213.34 1,891.4328 14,323 4,496.97 1,422.28 49 12,399 22,339.71 1,746.8929 14,936 5,720.39 1,529.93 50 11,737 -21,587.07 1,706.5730 15,604 6,577.67 1,579.67 51 11,406 21,945.25 1,663.7831 16,427 7,847.78 1,716.26 52 10,534 21,445.83 1;627.5532 16,610 9,080.46 1,840.40 53 1O,~77 22,496.24 1,679.4333 17,600 10,439.71 1,890.23 54 10,248 22,164.12 1,583.9934 16,431 10,615.29 1,829.03 55 9,703 21,897.86 1,566.1835 16,543 12,097.95 1,916.12 56 8,771 20,469.91 1,399.9236 16,048 12,222.27 1,843.72 57 9,003 21,682.15 1,4-78.0637 16,595 13,917.56 1,921.98 58 7,533 19,373.40 1,302.9738 16,510 .14,845.47- _.1,964.5.7.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 3JStMarch, 2012. Page 15

MIS. K. A. PANDITCO'NSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) ESTD: 01-02·1943

Table 5: Projected Deferred membersProjected former active members with an accrued entitlement in the scheme but for whompayment has not yet commenced. They are named as members with "Scheme Certificates"

(

No. Of Sala.ry·x T()ta)Age Employees Serviee . Salary18 50,317 496.48 1,341.6719 192,065 1,853.41 5,178.2820 286,813 3,583.73 7,713.6321 370,706 18,721.07 10,069.6722 445,619 25,987.16 12,847.8623 565,263 34,891.01 16,621.1624 522,528 35,557.59 16,041.0225 550,448 41,106.35 17,395.1326 547,538 44,790.73 18,060.7827 552,107 50,653.50 18,912.6028 578,295 59,118.88 20,020.6329 522,333 60,934.66 19,037.9630 492,425 64,802.58 18,505.5531 498,186 72,356.76 18,653.4432 443,253 72,657.57 16,953.4333 531,645 91,153.67 19,315.9034 395,863 82,240.85 15,632.0435 402,590 88,661.73 15,455.9036 379,889 91,643.11 14,709.6037 376,484 98,212.69 14,762.0338 379,758 104,997.05 14,547.78 "

No. Of Salary x Total".Age Employees Serviee Salary39 330,44()'" 100,469.65 13,038.4840 ... 316,026 104,417.54 12,438.8141 321,698 113,519.31 12,613.2642 277,238 105,361:79" "11;1043J" "43 318,636 123,644.14 12,246.6644 "253,486 112,990.29 10,397.2345 256,666 121,309.66 10,521.1746 227,814 114,398.80 9,406.1247 207,645 113,431.16 8,800.6948 221,927 124,966.97 9,164.2449 188,479 115,779.22 8,134.4950 172,823 113,750.41 7,549.3551 166,455 114,876.86 7,395.5152 139,119 104,915.90 6,330.3753 153,368. 117,880.36 6,827.4654 124,728 106,876.98 5,883.1455 117,962 105,802.97 5,566.1656 103,029 97,627.85 4,947.0657 115,159 103,852.34 5,052~858 86,597 86,294.33 4,038.57

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 16

MIS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) ESTD: 01-02-1943

r Scheme History & Benefit Details

The Scheme has been brought into effect from 16th November 1995 in replacement of the Family

Pension Scheme 1971. The Scheme envisages that ~th a diversion of 8.33% out of the

Employer's contribution and the 1.16% government contribution going into the -employees'

Pension Scheme, pension benefits are provided to the members from their age of 58 years or to

their dependents if the member dies while in service. Details of the pension benefits-payable ..and .

the various options available there under are not stated here as they are detailed in the Scheme

itself.

There are two categories of establishments covered under the Scheme, One category consists of

establishments that are exempted from Provident Fund; the other consists of establishments not

exempted. The implementation of the Scheme as regards the second category was relatively

simple as the EPF organization itself was receiving the Employers' contributions out of which

8.33% was required to be diverted to the Pension Scheme.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 17

, ' .GeeMIS. K. A. PANDITCOtlsULTANTS & ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED)

Benefit Details under EPS, 1995

r Employee Pension Scheme, 1995 provides for the following benefits to the members and their

families:

.:. Monthly member Pension

.:. Permanent total Disablement Pension .

.:. Widow/ Widower Pension .

.:. Children Pension/orphan Pension

.:. Disabled Children! Orphan Pension .

.:. Nominee Pension .

.:. Pension to Dependent FatherIMother .

•:. '. Withdrawal Benefit

Until the amendment made in the provisions of the scheme by the Government, the benefits of

Return of Capital and commutation of Pension by exercising option, was also available to the,

members and their families. These benefits have been withdrawn w.e.f 26.09.2008 after

notification of the amendments to the EPS 1995.

On- a comparison, under the ceased Employees' Family Pension Scheme, 1971, only _

widow/widower pension was payable, in case of death while in reckonable service and prior to

completion of 58 years of age., In 'the absence of widow or on cessation of Widow Pension,

pension was payable to the eldest child up to the age of 25 years and then it was to pass on to the

younger children, one at a time payable until they attained the age of 25 years. There was no

provision for pension tomember and Return of Capital or Commutation or Disablement Pension.

At the time of leaving the service, the employee was entitled to withdrawal benefit only.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 18

(., .:

";> •

, '

MIS. K. A. PANDITCO~SULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) esrn : 01-02·1943

Eligibility Criteria

Superannuation/early pension under the Employee Pension Scheme, 1995 will be payable on

fulfilling:

.:. Minimum 10 years of eligible Service; and

.:. Attaining Age of 58 or 50 for early age pension option.

On cessation from employment before completing 58 years a member can opt for early pension.

Such early pension can be availed only after completing 50 years of age and it will be subject to

discounting factor at the rate of 4.00010 w.e.f. 26.09. 2008 for every year falling short of 58 years.

Nopension will be payable to any member before attaining the age of 50 years. However, no

such age restriction or eligibility requirement shall apply for pension entitlement in case of

disablement or death of the member. Membership with one-month contribution will suffice in

such cases.

The quantum of pension payable to a member on superannuation and/or exit from service on

attaining the age of 50/58 years shall corresponds to the period of pensionable service rendered

by the member and his pensionable salary i.e. the last twelve months average pay drawn by him

at the time of exit.

Those retired after 16.11.1995, shall also have benefit of past service pension for the period of

their membership under the erstwhile Employees Family Pension Scheme, 1971 as per table

provided in paragraph 12(3) in the EPS, 1995.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 19

-MiS. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) ESTD: 01-02-1943

Benefit Scheme Formula.t:.:. Category I: Pension for members having no service prior to 16.11.1995

Pension is calculated by the formula (1170)*(pensionable Salary)*for each years of qualifying

Service.

In which Pensionable Salary Average of last 12 months wages on which contributions are..; .

received & Qualifying service as Contributory service commencing from 16.11.1995 with

additional 2 years of qualifying service provided an member has rendered a continuous service

more than or equal to 20 years .

•:. Cat~ory.n: Pension for members having service prior to 16.11.1995

The pension· to this category of members comprises of two parts:i

(D Past Service Pension (for service rendered up to 15.11.1995)

. (ii) Current Service Pension (for service rendered after 15.11.1995)

The past service pension is payable as follows on completion of 58 years of age 0~.16.11.95:-

.SaJaryup to Salary more than

Sr_No Years of Past Service ~5001-pm ~5001-pm(i) Up to 11 years . 80 85(ii) More than IIyears but up to 15 years 95 105(Hi) More than 15 years but lesstli3i1'iOyears' . 120 135(iv) Beyond 20 years 150 170

The amount under both salary brackets, as the case may be, is multiplied by the factor given in

following table corresponding to the period between 16-11-95 and the date of exit.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 3ptMarch, 2012. Page 20

/: .t

•.,. I

MrS. K. A. PANDITCOASULTANTS BeACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ~STD : 01·02·1943

Years FactorLess than 1 1.039Less than 2 1.122Less than 3 1.212Less than 4 1.309Less than 5 1.413Less than 6 1.526Less than 7 1.649Less than 8 1.781Less than 9 1.923Less than 10 zsmLess than 11 2.243Less than 12 2.423Less than 13 2.616Less than 14 2.826Less than 15 3.052Less than 16 . 3.296Less than 17 . 3.560

Years FactorLessthan 18 3.845'

I Less than 19 4.152Less than 20 4.485

I···. -I ..ess.than 21 4.843Less than 22 5.231Less than 23 5.649Less than 24 6.101Less than 25 6.589Less than 26 7.117Less than 27 7.686Less than 28 8.301Less than 29 8.965Less than 30 9.682Less than 31 10.487Less than 32 11.294Less than 33 12.197Less than 34 13.173

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 21

,,

.MYS. K. A. PANDITCOfiSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) Esm: 01-02-1943

Current Service Pension can be calculated with the formula specified for Category II member

with following minima; (For category Ithere is no minimum)

From 16.11.2005

:Minimum formula Pel1$ionf01"ContributoryService after 1.5.11.1995

From 16.tl.I995 to 15.11.2000·From 16.11.2000 to 15.11.2005

335438635

Date of Ccmmeacementof Petlsion

The final pension for above category members is the sum of past and current service pension and

the aggregate so obtained is subject to the minima as under:

Date of Commencement of Minimum Aggregate Minimum AggregatePension Pension (if total service ~ Pension after Reduction (if

24 years). total service < 24 years)From '6.11.1~5 to 15.11.2000 500 265From 16.11.2000 to 15.11.2005 600 325From 16.11.2005 800 450

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 22

MIS. K. A. PANDIT--CONSULTANTS & ACTUARIES

(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) ESTD: 01-02·1943

(Valuation Approach and Assumptions

The process of actuarial valuation of the scheme involves some assumptions about future

experience of certain parameters. The main elements involved therein are mortality, withdrawal

rates, and pattern of salary increases and movement of interest rates. Usually these assumptions

are determined on the basis of the study of past experience, assessing the present environment

and modeling what could happen in the future. Let us examine these main parameters separately.

Investments

The funds of the EP~ 95 Scheme are partly held in the Public Account with the Government of

India and the balance is held with the EPF Authorities. The amount in the Public Account is built

up by adding Government Contribution of 1.16% to the opening balance as on 15-11-95. The

Government has, also, been adding interest to the account balances. Currently the rate at which

interest is being credited is 8.500/0per annum. No payments are made out of this account. The

balance of the fund with the EPF authorities is utilized to pay the Scheme benefits and also to

meet cost of remittance. The balance of the Fund is invested as per the guidelines of the- -.

Government by the Fund Managers. The investments of the EPS are valued by EPFO . The book

value of the investments is taken for the purpose of this analysis.

Financial Assumptions such as Salary Escalation and Discount Rate are two major components

which will determine the value of the liability -

Discount Rate

This is one of the key financial assumptions, as using this rate, present value of all cashflows is

being arrived at and the same figure is being reported. During the last couple of years the rates of

return available on investment instruments permissible for such funds are increasing. We should,

however, keep in mind that this valuation is as of 31st March 2012 and should, therefore, take a

view as of that date. Long term yield on Government Security as on March 2012 was around 8%,. -

keeping that in mind a use of 8% as a discount rntrn reasonable. The experience of the Scheme

indicates that a rate ofinterest of 8% per annum as on that date was not unreasonable for

accumulations of contributions as also for the purpose of the valuations of pensions. The Pension

Fund is carrying on its investments at book values and the Fund holds quite a sizeable proportion

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 23 0

(':> / ,

MrS. K. A. PANDITCO~SULTANTS & ACTUARIES .(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02-1943

(

of investments bearing coupon rates higher than 8.5%. The general practice of the Fund is to

carry these investments to maturity. Thus this level of return will be available to the Fund for

some years to come. The Fund is required to follow an active investment policy so that the

highest possible return is available on its investments.

Salary Escalation

This is another key financial assumption as the benefit in scheme is based on salary at exit, it is

very essential to use a reasonable increase in salary which will estimate the value of benefits to

be paid in future. Since the pension payments are to be made on the salary as defined in EPS 95

at the time of separation, liability to pay such pension is based on the salary which the employee

will be drawing at the time of exit; so, it is necessary to arrive at figures which would reflect the

salaries of members in the future years. Estimates of future salary increases has been done on the, '

basis of current salary' suitably projected for future, beginning from the end of the first year

taking into consideration the general trend -in inflation, seniority, promotion and other relevant"

factors, such as supply and demand in the employment market We have considered the salary

escalation rate as 7%. This escalation is applied till the salary reaches a ceiling of f 6,500 per

month, this will result in limiting the benefits and contribution to be received on capped salary.

Future Years Salary Escalation Rate

For All Future Years 7.00% p.a.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 3pt March, 2012. Page 24

r:r.t's. K. A. PANDITCO"'SULTANTS &: ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED)

Withdrawal Rate

ESTD: 01-02-1943

( Withdrawal benefits forms large part of the valuation liability and is essential that this is been

estimated with care, Assumption made on these rate determines the estimated value of

withdrawal benefit. A Withdrawals Rate represents employee leaving the organization other than

on account of retirement and death or disablement. I have considered Withdrawal Rate at each

age. Withdrawal Rate is considered age related having regards to duration related rates. The

Withdrawal Rates used for the valuation are based on the experience of this scheme and similar

such schemes which are being revalidated.

Mortality

Graph 4Rates of withdrawal for each Age Cohort

~ithdrawal Rate- Age Specific

This is another key demographic assumption as the value of death benefit due to death in service

and death in retirement is determined using this assumption, while longe~ity which affects th~

pension in payment-is also been estimated using these-rates, Recent publi~h table reflecting. .

Indian Mortality is Indian Assure~ Lives Mortality (lAl;M) (2006-2OQ8), this is being used by

I (-11111111111111.111111111111

many companies as it reflects Mortality experience .. I am of the opinion that looking at the size

and spread of membership in EPS, it is more appropriate to use IALM (2006-08)

7Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 25

r--"

M1S. K. A. PANDITCONSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED)

(

ESm: 01-02-1943

li\_i·.·~200[:-08;\[:e ··lter·....3:, G 'to 19

ij'i,Ll'>/11COG-08Age inte-yal20 to 58

!:.'

!.••.

/

: :,i'-;

~,__., • __.f

Other minor assumptions

The process of valuation also involves some assumptions in respect of several parameters like

proportion of married members, difference in ages of spouses, number of children in the family,

possibilities of remarriages of widows and widowers, etc. These assum~tions though have very

minor impact on the valuation results, a suitable margin is kept for the eventualities.

Valuation Approach

Approached use for the purpose of valuation is cash flow method, this involves projection of- -

both benefits and contribution yearly _finding net cash flow.and arrive at the- discounted value. -

Benefits projected includespayment by way of expected pension, widow/er and orphan pension,. . -" . -" -" ". -

withdrawal benefits for actives and pension in payment including widow/er pension in payment

etc. while income consist of contribution from employer government and interest on investment.r/j

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 26

MiS. K. A. PANDITCOYiSULTANTS & ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02·1943

Data is grouped on' age, each age cohort is being projected for these income and outgo,

considering future eventualities. Discounted value of these projections is being used to arrive at

valuation results.(

Liability cash flows were projected till last payment for each category with projection for

expected future cash-flows for actives till the age of retirement. They were then compared to find

the net cash flows for each time period.

All cash inflows were added to find the total cash inflow and outflow for the fund .

. ' . Year-On-Year CashFlow(in Crs)

• ~ 1111111111.

Note: Above graph is exclusive of withdrawal benefit payable to donnant members.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 27

MIS. K. A. PANDITCcfNSULTANTS 81 ACTUARIES(ISO 9001 :2008 CERTIAED)(ISO 27001:2005 CERTIFIED) ssrn: 01-02-1943

Assumptions Summary

( F.uture Salary Rise (AetivePhase) 7'()()o/o p.a.Future Pension Rise (payment Phase) .. O.OO%p_a.Rate of Discounting .: 8.00% p.a.

'.'

Attrition Rate ...... Age Related

Mortality Rate Indian Assured Lives Mortality (2006-08). VltPension Scheme Employees' Pension Scheme, 1995

Maximum Pension As per service rendered

Maximum Salary For Pension (P-m.) f6,500 for those who are contributing atf6,500 or less

Vesting Period for pensioner benefit 10 years

Normal Retirement Age 58 years

Age Difference of Spouse (assuming 50:50% employment of o yearsmale and female) .:.'Contribution Rate (Employer Share) 8.33%

Contribution Rate (Govt. Share) 1.16%

Maximum Salary For Contribution (p.m.) (Govt. Share) f6,500(For actives with current salary less that f6,500)Maximum Salary For Contribution· (p.m.) (Employer Share) f6,500(For actives with current salary less that f6,soo)Maximum Salary For Contribution (p.m.) (Govt. Share) f6,500

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 28

•

~68eM]'S. K. A. PANDITCO~SULTANTS 81ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED)

(

esrn : 01-02-1943

Valuation Results

Net Liabilifl bifurcation(a) Present Value ofaliiliebenefltS(fuCrs)'(b) Present value of contrlbution(fu'Cts)'

Net Present value of aUbenefits (c)= (a)-(b)Corpus as on 31.03aOll (d)

f3,22,602.79fl,49,967.38fl,72,635.41fl,61,780.08

Net Liability Distribution Benefit Members %of % of total(For Each Category) Obligation Count Total Members

(in Crs) ObligationActives with Salary off6,500 or I~ 64,015.87 322,98,684 37.08% 36.05%

Actives with Salary of more thanf6,500 11,499.58 4,67,637 6.66% 0.52%Family and Beneficiary pensioners 14,674.31 14,05,160 8.50% 1.57%

Members Pensioners.· 37,766.70 26,97,854 21.88% 3.01%Withdrawal benefit of dormantae, 19,991.49 395,50,259 11.58% 44_14%Scheme certificafeof dormant ae, 24,687.46 131,83,420 14.30% 14.71%

Tota).' ;.",.' '1;72,635.41 ~~4~1~" "100.00% lOQ.OO%

Net Liability Distribution

Withd",w!I!1b•••• fit ofdorm.nt.c.

12%

,_ ActiVe. with salary of-,more th.n 6,500/-

7%.__Family.nd Beneficiary

pensioqers8%

Employees.' Pension Scheme, 1995:Actuarial valuation report as on 31st March, 2012. Page 29

MrS. K. A. PANDITC~SULTANTS BeACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02·1943

Conclusions and Suggestions

( • Salary ceiling for the EPS is not raised for quite some time, the benefit gets eroded due to

the inflation, but considering the effect the increase in the wage ceiling which can have

on the financial health of the scheme, some alternative method to take care of infl~tion

should be considered. Any enhancement in salary ceiling for EPS may be done after

looking at the effect on the fund. In our opinion if enhancement in the salary ceiling is

made then a revision in the scheme will be required so as to give service credit at

different level of salary ceiling.

• There is no protection for inflation on the pension in payment the same also needs

consideration, but this will put burden. on the scheme fmances. There is a provision in

case of valuation surplus which may ~.considered in future

• An exercise as to collection of the full data for all the type of beneficiary may be. .

undertaken so as to have proper evaluation of the scheme. In the current year an effort

was made to collect the data. and we have got 1000/0 of the Pensioners and Beneficiary

pensioner's data and 58% in respect of the active member's data which is substantially

large as compared to the earlier data provision. The data in respect of other category of

members and balance data for active members should be collected.

• An endeavor may be made to have statistical cell in the EPFO so as to generate scheme

specific mortality, attrition, and salary escalation etc.

• Having proper asset liability matching and investment of the money considering the cash

. flow will help in proper investment and earning of the fund. Investment department may

work closely with the benefit department to achieve the goal of higher earnings. This can

be possible, when the data required for cash flow projection is available.

• Pension is a long term liability and the discount rate and earning rate are driven by the

economic factors. It is unlikely that economic factors will remain static for such a long

term. Considering a static discount and earning rate would give a scenario of the liability. .

based on the current economic scenario. As the scheme is an ongoing-ene and benefit and

contributions are defmed, any variation in the actuarial parameters may be re-adjusted. in. .. .' . ..

annual valuations so as to have a perspective of the scheme year on year.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 30

~.MIS. K. A. PANDITCC1NSULTANTS 81 ACTUARIES(ISO 9001:2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD: 01-02-1943

(

• Sensitivity analysis is recommended once the data is available to do such analysis,

current data availability and purpose of valuation does not calf for the analysis as of now.

• We would also suggest to consider the requirement given by us earlier of fI4,042 crore

pending final validation for giving minimum pension offl,OOO pm,

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 31

MiS. K. A. PANDITC~SULTANTS &: ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001:2005 CERTIFIED) ESTD : 01-02-1943

(Other observations and methodology

• EPFO need to match the average salary with the contribution received in 2013 so as to arrive

at the average salary. As the reported figure for contribution and payment also includes

arrears, we have not been able to match the salary to arrive at the reported contribution and

the pay-out figures:

• We feel that the net liability for active members gets truncated because of consideration of

salary ceiling of f6,500IPM-. As person reaches salary off6,500IPM-, benefits will not

accrue further in respect of them, though future contribution received in respect of such

members will reduce the net liability.

• For this valuation we have valued 4.67 lakh employees without applying ceiling of

f6,500,IPM this has additional cost of ~,900 Crs vis-A-vis the liability if ceiling of

f6,5001PM was considered. As salary escalation and other demographic assumption for this

group of members is likely to be different but considering smaller size of the group we have

taken assumptions as taken for the entire group valuations, We feel that the contribution rate

of 8.33% will not meet the liability requirement and enhanced contribution rate will be

required to meet the liability which may be app. 15-times of the current rate but same needs

to be corroborated with the asset and liability figures.

• We have also not considered likely claim of the death benefit for dormant members. We feel

that covering the dormant members for death benefit will lead to an unknown liability and the

same is to be taken care of by suitable wording in the scheme.

• As the separate details for the FPF membership is not known and consioeringThe varied

nature of the lia~ility, an' estimate based on some margins. in assumption is kept to take care of.

the eventual liability.

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 32

.4. eGe..

ltt'S. K. A. PANDITCdNSULTANTS 81 ACTUARIES(ISO 9001 :2008 CERTIFIED)(ISO 27001 :2005 CERTIFIED) ESTD: 01-02-1943

• We have not considered any income or outgo on account of new or renewed memberships.

c• As most of the dormant deposits are not being claimed for long time, keeping a cut-off date

on such deposits may reduce the scheme liability.

6th December, 2014

Fellow. of the Institute of Actuaries of India.

(Membership No. 00053)

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31St March, 2012. Page 33

MrS. K. A.PANDITC~.TANTS & ACTUARIES(ISO Y001;2OO8 CERTIFIED)

ESTO: 01-G2.1943

(

Projection for previous periods

We have also done projection of liability based on the current data rolled back for past

two years using same assumptions and methodology. Considering the erratic movement

in the data between periods of projections we feel that this liability estimates may only be

considered for the purpose of reference only. The results of the projections are given

below

VALUATION AS ON 31-03-2010

NetLiabiHtybifurcation(a) Present Value of all the benefits (In

Crs) 2,52,064.97

(b) Present value of contribution (In Crs) .1,23,112.16Net Present valueof aUbenefits(c)= (a)-

(b) 1,28,952.81. Corpus as on 31.03.1010 (d) 1,23,790.43

NetLiabllltY(IaCrs) {(c)-(d)} 5.l62.38

2n,12,7884,01,2409,82,18825,27,818230,11,479

Employees' Pension Scheme, 1995: Actuarial valuation report as on 31st March, 2012. Page 34

*. PRINTED ON ECO·FRIENDlY PAPER"

M1S. K. -A. PANDITC~CTANTS & ACTUARIES(ISO 9001;2008 CERTI.FIEO)

ESTD : 01-02.1943

VALUATION31-03-2011

Net Liability bifurca~4)n(a) Present Value of all the benefits (In

Crs)

(b) Present value of contribution (In Crs)

Net Present value of all benefits (e) = (a)-..................._.. (b)

Corpus as on 31.03.2011 (d)

2,45,055.45

1,15,994.34

1,29,061.12

1,42,050.82

(12,989~70l Surplus

3,72,42310,07,39525,92,694266,19,83088,73,2n

11.14%22.14%

0.57%1.55%3.98%

6th December, 2014 Mukund.G.Diwan

Fellow of the Institute of Actuaries of India •

.'

Employees' Pension Scheme, 1995: Actuarial valuation report as on 3)5t March, 2012. Page 35

** PRINTED ON ECO-FRIENDLY PAPER**