r(I, ~1Pi

,""

I'IJ)(

)I

»D

(('D(

t(

t(

,t(

t{\

t

••~

(

tD

\ •t

••••••••••••,•••.'

EMPLOYEES' PROVIDENT FUNDORGANISATION

31stMeeting of the Sub- Committee ofCentral Board of Trustees, (EPF) on Exempted

Establishments.

Date 29.04.2011 (Friday)

Time 11:00 am

Venue : Hotel Gokulam Park, "Kaloor,Kochi.

I

••I.I.i •••'.

Agenda 'Paper

For the 31st Meeting of the

Sub-Committee of

Central Board of Trustees.. - .. - ------ -.. -"--~----'--'-~--'- -----~-.~ ....- -- --.------. ' ..- ---------

(Employees' Provident Fund)

On Exempted Establishments

1

I

31st MEETING OF THE SUB COMMllTEE ON EXEMPTED ESTABLISHMENTS

Date: 29.04.2011(Friday) Venue: Kochi

Time: 11AM

INDEX OF ITEMS

51.No ITEMS Page No

t .Action TaKen Statement In respect of ... -3 --

30th Meeting of the Sub Committee onExempted Establishments

2. Status Report on the Exempted 5-10

Establishments of TamiiNadu & Kerala

3 Format of the balance sheet for 11-12

Exempted PFTrusts

4 Process of grant of Exemption 13-15

5 Annexure A to G 16-36

2

".f,1\ \ i

f \ lt~etin U ()f 1h(' 't::l I () 1"11 II i it fL·cut (, I~n, [r-~!t=xctnpted estal~t~Li.!!}ellt~

SI : Decision'No. : /Recommendations of

the committee"1..•.. Report of the committee

constituted for developing

the formats of the balance

! sheet for repor1ingthe

IIaccounts of the exempted

I PF trusts.

I

I I

1_ 1 .

)I i

i Action Taken/ Status

The Institute of Chartered

Accountant of India (leAl) was

i requested to examine the

I feasibility of developing an! .

standard for audit ofi accountingthe exempted trust funds in light

Iof condition no 24(b) of Para

27AA of the EPF scheme'52.IThe institute has informed that

the accounting standard on

retirement benefit plans

developed by the study group

constituted by them for the

purpose has been finalized. The

first exposure draft has been

issued by the institute and the

I same is placed as Annexure H, I

for the perusal & deliberations of

the members. As the members

had desired for deferring the item

for the next meeting the same is

jPlaced again I3

'; -,) .

(') "t:, 'r) ,.

)C(

f) ~

,COC(;)C,)C)C)l

)C)l

Jl

OC()l

0"Ol

:.i-t..)'"

O(

PREFACE:-The Central Board of Trustees, EPFO has constituted a sub-committee

on exempted establishments to deliberate and make recommendations

on all policy matters relating to the exempted sector. The committee

consists of two employers' and two employees' representatives besides

the Join Secretary Ministry of Labour and Employment as its members.

The main functions of the committee are to:-

• Oversee the working of the exempted establishments and make

suggestions for consideration of the board in order to improve

the working of the exempted establishments.

• Consider and suggest additional guidelines for grant of

exemption/relaxation

During the year 2010-11 the 30th meeting of the sub- committee on

exempted establishments was held in Kolkata on 08.1 0.1'0. The-~-~~----- ---

..committee· reviewed the working of the exempted establishments In

respect of Kolkata, Jalpaiguri. Jharkhand and NER regions.

The agenda for the 31st meeting is submitted for the perusal and

deliberations of the members.

4

1

Item No 2: Status Report on the Exempted establishments

of Tamil Nadu & Kerala

Tamil Nadu:-

The political state of Tamil Nadu is having four Regions namely

Chennai, Tambaram, Coirnbatore & Madurai having a total of 122

exempted establishments. (u/s17 (1) & 27A) and 277232 members.

CHENNAI REGION

Chennai region having its Regionat Office at Chennai and. Sub

Regionat Office at Ambattur has a total of 65 exempted/relaxed

establishments (Annexure-A) and membership of 181294.

Compliance:- .\During the year 201O~11 compliance audit in respect' of 65 .

. ---..-.... . -- --.- _ _..- - ~. ..._ _.. ··~---····lest~bii;h~~~t~ ·was conducted out of which 55 establishments were •

. \ 'found to be violating one or more conditions of exemption RPFG has .•

initiated appropriate actions as prescribed in the Ad/Scheme against all .

violators (Annexure- A & C)

15 establishments had defaulted in the payment of dues RPFC has

already concluded assessment of dues u/s 7A1148 in respect of 5

cases however in 4 cases stay has been granted by various courts

(Annexure - F):

Grant of Exemption:-

Chennai region has 6 relaxed establishments (Annexure-E) and has.

submitted proposals for grant of exemption in respect of all the cases to

Head Office. Out of the 6' pending cases for grant of exemption

proposals in respect of 3 establishments has already been forwarded to

5

I

(.'.(."e\.~.l..\'e".'0..'.'•.'•••.'

(r'~nAI~r'>~"ti>

~'~

(':

c-"'"

ct

Ct(

c~-tt:"It was issued clearly mentioning the procedure and documents required

(I for the, purpose, accordingly RPFCs have been submitting cancellation

( ., proposals which has helped in expediting the action for cancellation of( .--'-----exemptinn~-- --~-' -,'~"---

(-.

the Appropriate Governments for further necessary action and the

remaining cases are being processed.

Cancellation of Exemption:-

During the year 2010-11 action for cancellation of exemption was

initiated against 4 establishments. Out of these in 2 cases (Annexure-

_D) exemption/relaxation has already been cancelled/withdrawn by the

appropriate authority after following the due procedure. In respect of

-the remaining proposals, action has been initiated for submitting the

proposals to the Appropriate Government for further necessary action.

It may be mentioned here that Head'Office, EPFO has streamlined the

procedure for cancellation of exemption and a circular dated 30.07.09

(•C.C.C.C.C.C.,"-.'.L.l '--'.'-~.'~.".~.,-'-

•••

TAMBARAM REGION

Tambaram region having its' Regional office at Tambaram and Sub .

Regional Offices at Vellore & Pudducherry has a total of 16

exempted/relaxed establishments, having membership of 21535

members (Annexure-A). .Out of these 16 establishments, 12

establishments are exempted u/s 17, two establishments are exempted

u/p 27A and the remaining 2 establishments are relaxed u/p .79.

6

l

Compliance:-

As per the reports of the compliance audit of exempted establishments

conducted during 2010-11, 09 establishments were found to be

violating various conditions of exemption. RPFC has issued show ause

notices I directions for rectifying the violations (Annexure-A & C}.

During the compliance audit it was found that 03 establishments had

defaulted in the timely payment of dues to the trust and EPFO. Out of

these three establishments action u/s 7Al14B has already been

initiated in respect of 2 cases and the assessed dues have been

recovered. (Annexure-F)

Grant of Exemption:-

Tambaram region has two relaxed cases out of which proposal in

respect of MIs BHEL Ranipet have been forwarded to Head Office and

. _.iaunder process.;--however-proposal-In respeet--of--MIs--1-amii--Nadn -------.(

Industrial Explosives has not been submitted. The establishment is in • ':

default of payment of PF and allied dues (Annexure E). .( ,

Relaxation granted to MIs Henkel was withdrawn by the RPFC with

effect from '01.12.10 and the past accumulations are being transferred.

COIMBA TORE REGION

Coimbatore region with its Regional Office at Coimbatore and Sub

Regional Offices at Salem and Trichy has a total of 28

exempted/relaxed establishments, having a membership of 59720

members. Region has 27 establishments which are exempted u/s 17,

and 1 relaxed establishment. (Annexure- A).

7

l

'.(.(.(.~-·.t.<,e\-."-.'.•\••••••:....•'

(",'('

I', , IC ,.i'l

Cf,oDc!'[)C. P~

C.C-.C,C_C·,C.CtC,(.(lit(- --------- - ------~.----------~----.------------ ---•C.(.( .~.r

't,'.,"

'I'.~.'-.•••••••••

Compliance:-

After the last compliance audit, violations of the conditions of exemption

were noticed in 08 establishments (Annexure- A & C). MIs Coimbatore

Dist Consumers Coop Whole Sale Stores Ltd. was found to be violating

condition no 25 of para 27M of the EPF scheme'52 i.e Continuous

losses for three consecutive financial years. The exemption granted to

the said establishment has already been canceUed in the year 2004

however the Hon'ble Madras High Court has quashed the cancellation

orders vide its orders dated 09.07.10 and now an appeat against the

said order is being filed.

Three establishments have defaulted in timely paymenUtransfer of dues

and necessary action against all three establishments has been

initiated (Annexure --F)

Grant of Exemption:-

Coimbatore region is having only one relaxed establishment MIs Tamil

Nadu Newsprints Ltd and its proposal for granfof exemption is under

process (Annexure E)

During the year 2010-11 MIs ARC Retreading surrendered its

exemption and transferred the past accumulations. (Annexure D).

MADURAI REGION

Madurai region with its Regional Office at Madurai and Sub Regional

Offices at Tiruneveli and Nagercoil has a total of 13 exempted/relaxed .

establishments, having membership of 14683 members (Annexure- A).

. The region has 12 exempted establishment uls 17, whereas the

remaining establishment is relaxed under para 79 of the EPF Scheme

1952.

8

I

/,\.. . J

Compliance:-

, exemption were noticedin4establishrnents (Annexure~'A & C). "

, After the latest -oompiiance audit, violations: of the'conditions of

I

, ,___ ,_ .••.•••.,_-~,~. -..:......_. _~A -,:; _.. _

'-.'.•'.'.•••

exempted u/s 17, t5 establishments under para 27A and the remaining

4 establishment are relaxed under para 79 of the EPF Scheme 1952.

Compliance:-

After the latest comptiance audit 10 establishments were found to be

violating one or more conditions. of exemption (Annexure- A & C). Out

of these 10 establishments 3establishments were found in violation of

condition no 25 'of para 27AA of the Scheme and accordingly

necessary action for cancellation of exemption/relaxation is being

initiated by the RPFC.

3 establishments had defaulted in the payment of dues (Annexure - F)

RPFC has already concluded assessment of dues u/s 7N14B in

respect of 2 cases, however M/s Travancore Rayons Ud has obtained

a stay order from the Hon'ble Kerala high Court which has stayed all

coercive actions against the establishment....._-----._--_._--- ---

Grant of Exemption:-

Kerala region has 4 relaxed establishments and has submitted'

proposals for grant of exemption in respect of 3 cases to Head Office

which are under process (Annexure-E). MIs Bhageerath Engineering is

in continuous losses and action has been initiated for withdrawal of .

relaxation.

Cancellation of Exemption:-

During the year 2010-11 action for cancellation of exemption was

initiated against 2 establishments. Out of these in 2 cases proposal in'

respect of MIs Aluminium Industries Ltd has been sent to the·

Government-otKerala for further necessary action (Anrrexure-D).

10

1

()

Item No: 3 FORMAT OF A BALANCE SHEET FOR EXEMPTED PF

TRUSTS

The revised conditions for grant of exemption were notified by the

Ministry of labour and Employment, Government of India on 22.09.03

under para 27M of the EPF scheme 1952.Condition number 24(b) of

para 27AA prescribes that "A copy of the auditor's report alongwith the

audited balance sheet should be submitted to the RPFC concerned by

the auditors directly within 6 months of the closing of the financial year

from 1st April to 31st March. The format of the balance sheet and the

information to be furnished in the report shall be as prescribed by the .

EPFO and made available with the RPFC office in electronic format as

weHas signed hard copy"

In view of the above provisions a committee of officers 'of EPFO was

constituted by the Chairman of the Sub-Commlttee of the CST on.

Exempted establishments for formulating a format for the balance sheet

as well as schedules for exempted PF trusts. The committee of officers

submitted its report which was placed before the sub-committee of the

CBT on Exempted establishments and the said committee approved'

the report in its ze" meeting held on 06.04.04.

Subsequently a reference was made to MIs Institute of Chartered. ,

Accountants of India (lCAI) to examine the requirements and feasibility

of developing Accounting Standards for auditing the trusts funds as well .

as company's accounts.

The institute has informed that the Accounting Standard 36 on

retirement benefit plans developed. by the study group constituted by

them for the purpose has been finalized. The first exposure draft has

been issued by the institute and is placed as (Annexure -G)

11

I

(I.: rer-

C>'cen•r.'.r:.' I.!~•.C•->1."••(.'..1,.".-c..'.e(,".1,-.'.•e"J.'-.''-...,.j.•~'

, I."'-e"-.".,-,.~.'

(

r'f'l C-'j\'

A'()n[)r()

(~

or>'I)r:•\-.\"tC•c,cItC.c~•r. It appears that the proposed accounting standard 36 is primarily

r focused towards pension schemes and does not prescribe any format~ , ~

( ---oLthe--balance-sheet--and-!be-jnfQunation-to 'be-pr-ov~dedh\l +he-auditors--'., ,~' "

( in respect of PF trusts exempted by EPFO, and hence may not really•I.(.C t(I'l,,l,t

•

Para 2 of the said draft mentions that •• Retirement benefit plans are

sometimes referred to by various other names such as pension

schemes, superannuation schemes or retirement benefit schemes.

Further para 3 specifies that "this standard deals with accounting and

reporting by the plan to all participants as a group. It does not deal with

reports to individual participants about their retirement benefit rights.

The draft report makes. clear that "This standard does not deal with

other forms of employment benefits such as employment, termination

indemnities, deferred compensation arrangements, long service leave '

benefits, special early retirement or redundancy plans, health & welfare

plans or bonus plans. Government social security type arrangements

are also excluded from the scope of this standard"

be relevant and useful with regards to our requirement as mentioned

The item is place for information.

under condition 24(b) of para 27M of the EPF scheme and therefore

the format of the balance sheet and schedules already approved by this

committee are being adopted for implementation.

I

•'.'.••It 12

•• I.'t

Item No 4:- Process of grant of exemption

Clause 56 of the Finance Bill, 2006 amended the rules 3 & 4 of Part A

of the Fourth Schedule to the Income tax Act, relating to recognized

provident funds. The proposed amendment inserted a proviso in sub-

rule (1) of rule 3 of Part A of the Fourth Schedule so as to provide that,in a case where recognition has been accorded to any provident fund

on or before 31st March, 2006 and such provident fund does not satisfy

the conditions set out in clause (ea) of rule 4 of Part A of the Fourth

Schedule, and any other conditions which the Board may, .by rules

specify in this behalf, the recognition to such provident fund shall be

withdrawn.

Subsequent to the said amendment it become mandatory for the

provident fund of any establishment to which the provisions of section'

1(3) or 1(4) of the EPF & MP Act ,1952 applies to obtain exemption of

('WI'f)OO()

n() .

eO.e,.n

r,.'.C'•(e\..C.c•'-'."("\.'"•.•'

---- ---------,-the -said-Act inorder-to-obtain-Ineome-'Tax-reeognition:--A-s-perthe - - .. ---.CFinance Bill 2011 the last date of obtaining exemptions has been .(

extended till 31.03.12.

" !.

The process of grant of exemption begins with the field offices where

the proposal is received. After scrutiny of the proposal with regards to

the essential documents and certificates as per instant instructions the'

proposal is forwarded by the field offices to the Head Office. The

proposal is examined with regards to its suitability to the provisions for .

grant of exemption as mentioned under section 17 of the EPF & MPAct

and on being found fit, is approved by the CPFC for placing before the

.CST, EPF, as per the directions of the Ministry 'of .Labour &.

Employment vide its tetter dated 1.4.08.

13

I

.'.'.'.'\.e\

•'.

.",.\•••.'••

, ••

•••••••

The views of the CST atongwith the proposal is then forwarded to the

Appropriate Government for consideration

EPFO has issued comprehensive directions to the field functionaries

vide Head Office circular dated 28.12.07 rationalizing the process of

grant of exemption and stressing the need for a thorough scrutiny of all

proposals at the level of the field offices and forwarding the same in a

time bound manner to Head office. The circular dated 28.12.07 which is

also place on the EPFO website prescribes 15 specific documents

including the 10 point certificate prescribed by the Ministry of Labour

Government of India, Trust rules, Relaxation order, Undertakings,

Consent of employees etc which are required to be submitted by the

RPFC.

EPFO has also prescribed model. PF trust rules for establishments .

seeking exemption. Estabtishments may adopt the model trust rules or...--- --.~---------

--amenO-it-suitably-in--order-tome-etih-e-reqUirements6ftneiflrusts.

In March ·2009 Ministry of Labour, Government of India issued

directions that proposals should only be forwarded after the report of

the latest compliance audit is found to be satisfactory, hence a

thorough compliance audit covering all the points as mentioned under

.the revised conditions for grant of exemption is undertaken by the

RPFCs .and a copy of the report is forwarded to the Appropriate

Government

As is clear from the above, the entire process of grant of exemption

involves a number of stages and levels besides documentation.

Scrutiny is done at multiple levels and a .number of approvais are

required. Inherently because of the process, the time involved from the

beginning to the issue of notification is also long.

14

1

procedure.

In orderto expedite the processing of the proposals, CPFG vide circular

his dated 27.04.09 has also issued directions for expeditious

processing and forwarding of all applications for grant of exemption. It

has been directed that within 15 days of receipt of a complete proposal,

the same should be forwarded to the Head Office.

As per information available the Appropriate Governments have

granted exemption in 276 cases since 2006 and proposals of 230

establishments are under process for grant of exemption.

The item is place for information & deliberation for simplifying the

.c.(.'.".1,ei

\.\e"el

,.\,.'•15 ••

I •.'.-

r .:' [' ( (~- ('"""'- r r: r'"' r: r. ,.---./"""',~,--." .- "'""." r,"",,\ .'1 () () ,_ . """"• • • • •• • • • • • • • • • • • • •.~ • •.I... ,. .. .. .•'1V-\l:l) J., )~')~)'=' )~')~J ••~

=r1-1, 1\.,C «:..IJ, -1 f .,:.."" ,--" ""-"" f!

'~~. \ ~J \J, ,

, f'r '\-~r·E·~1rl 6.A) '<'/,r .:--rrD:'(,),,-, ~

""-,!

GENERAL STATISTICS OF EXEMPTJO ESTTS OF TAMI~NADU AND KERALAI,

ir

ANNEX-A

....

INo of Estt

No ofestt violating)

I

Total Exempted ' Exempted Relaxed u/p No of defaulting conditions of No ofSrNo Region exempted estt u/s 17 u/p 27A 79 Estt exemption Members

I1 CHENNAI 65 56 3( 6 15 55 181294

;

2 TAMBARAM - 16 12 21 2 3 9 21535I)

;,

3 COIMBATORE 28 27 01 1 3 8 59720Ir~•

4 MADURAI 13 12 0, 1 2 4 14683I

iiI

5 KERALA -, 56 37 151 4 3 ~O 52398')

Irr

, TOTAL 17.8 144 20i_ 14~-~--

86 329630~--~---

I

16

,~.:~

"-",. J

STATUS REPORTOF TAMILNADU AND KERALA,

ANNEX-B

SR. NO ITEMS CHENNAI ,TAMBARAM COIMBATORE MADURAI KERALA

Establishments in default of i1 payment of dues 15 I 3 3 2 3!

Establishments violating theI

I2 conditions of exemption 55 9 8 4 10

3 Relaxed Establishments 6 , 2 1 1 4,i

Relaxation withdrawn/Exemption4 cancelled 4

I 1 1 1 2.- --.

117

.' •.• ~ .,. , ~ • tJ· '- ••••• ' •• 1 e_ ••••••••••••• ., e " •". , (' , r r: r: r: r: r- r r: .... r (.,' ''','~\ ''') r=-, "r; 1)') ') i') '') () .,') '')))

~ ( (~ r> r: r> f' r: !' r: r>. " .'1 ,'"""\:I '1 ~ ')• • • • • • • • • • • • • • • • • • • ~ ••..•.• •• .• ().tJ~0~~.,~~~~3v'")'-:-»)~ ')

;,;..

ITYPESOF VIOLATIONS O~ CONDITIONS OF EXEMPTION

I

ANNEX- C

--.

I Consecutive loss to,

I the estt for 3 yearsNon Maintainence Default in transfer Non Enrollment or erosion in its , Failed to recoupof Investment of dues to of flll eligible net losses of the Failure to auditPattern(Condition BOT/EPFO(Conditi emploveesl condit worth(Condition trust{Condltion No Accounts(Condi .

I

SrNo Region No 17) on No 5) ion No 3) No 25) 28) tion No 24)

(

1 CHENNAI 43 15 22 NIL 18 12,

III

2 TAMBARAM 3 3 2 NIL 3 NIL II

I\

i3 COIMBATORE 1 3 1 2 5 NILIII

4 MADURAI Nil 2 : 2 2 NIL NilIII

5 KERALA NIL 3 NIL 3 3 2

I

It~

~'")

LIST OF CASES OF CAN~ELLATION OF EXEMPTION' . ANNEX- 0

-..

I

SR·NO NAME OF THE ESTABLISHMENT CODE NO REGION STATUSi

:I

1 Manali Petrochemicals TN/30961 ! ChennaiI Exemption cancelled by the Ministry of LabourI

, i on 20.10.10.

2 Futura Polyesters TN/9614 Chennai Proposal forwarded to Head office and underprocess. Clarification called from RPFCvide letterdated 06.04.11

i

3 Madras Gymkhana Club TN/3070i

Chennai

Proposal submitted to Head office and underi

process

Establishment started compliance as4 Spic Petrochemicals TN/40819 Chennai unexempted wef 10/2009 & transferred the past

Iaccum ulations

-

! i~'. . i .

• • • ~ ~ ~ ~ ~ '- ~ ~ ~ e~ ~ ~ ~ ~ " eA ." e" er: ~ e, e" el) el)e1)e') ~} ~j 8') .C/'J OJOJ .,

( r r: (' (> (> r- ("'\ (' [' r· (\ r (' .0, rl I,"", (j (") r'\ () () r'\ .• • • • • • • • W' .'. • • • • • • • .! .,. .'..... '. ... ..J.().r').~_')~{)~~·e/)~')'I!!7~:

LIST OF CASES OF CANCEiLLATION OF EXEMPTIONI

ANNEX- D

I Surrendered exemption. Proposal sent to Govt of

TN/10139 MaduraiTamil Nadu on 25.01.10. Establishment started

5 SPICcompliance as unexempted & transferred thepast accumulations

I Relaxation Withdrawn wef 01.12.10. Cash6 Henkel Spic PC/654 Tambaram balance transferred and securities and 50S

account balance befng transferred!

7 Aluminium Industries ltd KR/2726 Kerala

I Proposal sent to the Govt of Kerela on 23.09.09& reminded on 16.11.09 & 18.03.11 I

i

,

B Binani Zinc KR/2728 KeralaProposal for cancellation sent to Head Office andunder process

I

9 ARCRetreading TN/6259 ColmbatoreI

Surrendered exemption and past accumulationsI

transferred to EPFO!

!

20

.-

-,I

LIST OF RELAXED CASESi .ANNEX-E

SRNO NAME OF THE ESTABLISHMENT CODE NOREGION

STATUS.i

Proposal submitted to Head Office. Clarifications1 TamiiNadu Civil Supplies Corp TN/8"127 i Chennai called vide HO letter dated 30.03.11

i Proposal submitted to Head Office, however it hasbeen informed that the establishment has merged,with'M/s Indusind Bank Ltd2 Indus Ind Bank Consumer Finance TN/19759 Chennai

I Proposal sent to Ministry of labour. Clarificationsi

called by Ministry sent to the region vide letter3 Indian Additives Ltd TN/36423 . (hennai dated 17.03.11

I Proposal submitted to Head Office. Clarifications4 Ashok leyland Sr Executive PF TN/11727 Chennai called from RPFC

i Proposal sent to Govt of Tamil Nadu on 10.09.07 and5 Delphi TVS TN/65iOS

iChennai notification awaitedi

6 WABCOTVS TN/66827 Chennai ProposaLsent to Ministry of Labour on 28.03.11II

I Proposal submitted to Head Office. Clarifications7 Tamil Nadu Newsprints ltd TN/22238 ! Coinmatore called vide HO letter dated. 30.03.11

i! Proposal submitted to Head Office. ClarificationsI

8 BHEL TN/17199 I Tambaram called vide HO letter dated 25.02.11

9 Tamil Nadu Industrial Explosives TN/23108 ! Tambaram Proposal not submittedI,

Relaxation was withdrawn but stay granted by10 Sivgangal Dist Central Coop Bank TN/29759 I Madurai Hon'ble Madras H!gh Court against withdrawal

•••••••••••••••••, . / ~ r ( r (r r r r r r r r r

1

•• le1 ••••• ., ••• (III •• 0 0-:) 0,.,nn0~0n·n·~nn000000Q0~~

r: .: - r>. ."..--. r> r rr- r- ,.-.r .~ ~ .--- ~ ~ '1 .'• • • • • • • • • • • • • • • • •• • •. ~. •• '. ./j.l.~.").Jr)~")~:)~e,,)'O~J"::/}~-;

ILIST OF RI:LAXED CASES

!ANNEX-E

Kerala Land Development Proposal submitted to Head Officeand is under11 Corporation KR/12536 Kerala process

I Proposal submitted to Head Officeand is under

12 Kerala Metals & Minerals KR/10315 I Kerala process

I KeralaProposal submitted to Head Officeand is under

13 Hin.dustan News Prlnts.Ltd KR/10290 process! ;

Establishment is in continuous losses. A show cause j

14 Bhageerath Engineering • . KR/5196 I Kerala notice for withdrawal of relaxation issued I

--

.2.2

I

-5-

LISTOF CASESOF DEFAULT AND NON ENROLLMENT ANNEX -F

T

SINo Name of the Establishment CodeNo Reglon ~ature of Default Action Taken/Status

i W.P.pending WMP NO.34154/04Contribution not remitted from OFW.P.No.28119/04-Stay against sale of11/02 to 03.04 amounting to property/recovery of dues.WMP No.34153/04 of

1 Alacrity Foundations Pvt.Ltd. TN/17459 CHENNAI Rs.23.96 lakhs WP. No.28118/04.Stay against warrant of arrest.

•

The W.P.No.4462/96 filed by the estt. was

Idismissed by High Court with direction to approach

I EPFAT. Accordingly the estt. Has filed applicationII

before the EFPAT vide No.ATAI, .

Assessment of dues of loading and No.259(13)2002.EPFAT had set aside the orderTamil Nadu Civil Suppiles.Corporatlon unloading casual employees passed by RPFC.RO,Chennai has decided to file

2 Limited TN/8427· CHENNAI amounting to Rs.174.75 W.P before Hon'ble High COurt of Madras.4ssessment of dues in respect of SLPFiled by the. Estt in the Supreme Court. The

.. dasual employees amounting to Court has ordered that no coerslve steps be taken 1

3 Tamil Nadu Electricity BoardI

TN/5887 CHENNAI RS.1188.4 until the disposal.of the petitionAssessment of dues in respect of Stay granted by the Hon'ble High Court of Madrasdasualemployees amounting to vide Order dated 20.12.2004 in W.P~No.34739 of

4 Chennai Petroleum Corpn. Ltd TN/4683 CHENNAI ~s.103.93 2004Assessment of dues in respect of

5 Victoria Technical Institute TN/2SSS CI-lENNAI casual employees. Amount Rs.S.78Lakhs fully recovered .. ~el~y and default in transfer of

6 Best and Crompton TN/849 CHENNAI funds to BOT Action initiated to assessdamages u/s 14 B

CHENNAIlDelayand default in transfer ofI

7 Madras Auto Service TN/1137 funds to BOT Show cause notice issuedI

I

II

...: .•,..-.• ,- • , -- • • • • •. • • • • • .1~ • • • • • • •..•.• • • • • e 00 ~• ~ rr, T, 7rrro~r0n0·00nnOn0DnOOO~OOQQ0~0

•••••• '•• ' •• '." .-, tf' ••••••. ~ .f;~.~.,['!.0.r).')"()"f').tj,,f)'l:l'j.D~~") ..cC)~~'"J~QI -

ILISTOF CASESOF DEFA~LT AND NON ENROLLMENT ANNEX-F

CHENNAI~elay and default in transfer of

8 IT Krishnamachari & co., TN/2508 funds to BOT Show cause notice issued

CHENNAIqelay and default in transfer of

9 Patterson & Co., TN/2534 f~nds to BOT Show cause notice issued

CHENNAI~elay and default in transfer of

10 8apalal & Co. Jewellers TN/2562 f nds to BOT Show cause notice issued

CHENNAIqelay and default in transfer of

11 Khadi Gramodyag Bhavan TN/3218 funds to BOT Show cause notice issued

CHENNAI ie'ay and default in transfer of12 TN Co.op State Land Dev. Bank Ltd TN/4152 f nds to BOT Show cause notice issued

Railway Employees Co.op Credit CHENNAI Delay and default in transfer of13 Soc.Ltd TN/4153 f~nds to BOT Show cause notice issued

CHENNAI ~elay and default in transfer of14 Madras Fertilizers Ltd., TN/7929 funds to BOT Show cause notice issued

I

~ Murugappa Management Services CHENNAI Qelay and default in transfer of15 Limited TN/8293 1unds to BOT Show cause notice issued

The Coimbatore District Consumers I16 Coop Stores TN/2616 COIMBATORE Non transfer of dues Action under Sec.7A initiated

I

17 Burn Standard Co. Ltd., TN/2949 . COIMBATORE I~enal Damages not deposited Stay by Court.

II

18 TVS Motor Company Ltd TN/17669 COIMBATORE Penal Damages not deposited Matter pending before EPFATThe Madurai Dist.Central Co.op.Bank pefault in transfer of dues in

. Ltd., Madurai respect of contract employees of Enquiry u/s 7·A concluded & recovery actions19 TN/4169 MADURAI . contract employees initiated

.-

..~-,'

24

LIST OF CASES OF DEFAlJL TAND NON ENROL~MENT ANNEX -F

,Default in transfer of funds to BOT

20 Tuticorin Alkali Chemicals TN/20106 MADURAI from 04/10 to 10/2010 Enquiry u/s 7A initiated

Tamilnadu IndustrialExplosives Ltd., Delay and default in transfer of Inquiry u/s 7Aconduded upto 10/2010 and21 Katpadi TN/23108 . TAMBARAM dues to BOT assesseddues recovered

~elay and default in transfer of22 Skol Brewries TN/146 TAMBARAM dues to BOT& EPFO. Oamagesu/s 14B levied and recovered

qelay and default intransfer of23 Scudder Memorial Hospital TN/7544 TAMBARAM I~ues to BOT& EPFO Show cause notice issued

1

24 Aluminium industries Ltd KR/15 KERALA Default in transfer of dues Recommended for cancellation of exemption:, Bank attachment order issued to Indian Overseas,

, Bank, W. Island was stayed by the Hon'ble High!i Court in the WP<ONo.25182/2009. The 3rd party-I attachment lssuedto M/s. Tata Tetley Ltd., KochiI

and reallsed Rs.3.S3lakhs. Employer filedi

~ WP(C)No.24811/10 against CP-25Notice before I

Hon'ble High Court and Court videits orders datedT~ansfer of funds to BOTand 15.10.2010 has stayed all coercive actions.

25 Travancore Rayons Ltd KR/16 KERALA statutory remitta nces

I:I

PFnot remitted on special Enquiry u/s 7A concluded and dues assessedon26 Marikar Motors Ltd KR/1114 KERALA alilowance 01.03.11

------ -

I

. !

II

i 15••••••••••••••••••• 1 ••••••••••••• e 0 e m ~7 r r r r r r C C OQD 0 C 0 r r,0 a 0 n 0 0 n 0 0 0 0 0 0'0 0 0 0 Q ~~.

(

'I

',I

j. '"

! ',' !,." ~ ••• ,. • J • .'. '. I . : - ;of the 'r~vlsed A~counting standard ",lilUUt,., ••••••••,,..

which, ~aye eq.uh.ia'r'~oiity.,p'~m'al'B,nhs ola·'tVDfUridic:alelthelati1;Pltinc;;ple ..s.- . ,Draf( of.the proposed 1.>1.,CC(lun

. objective apa.the Pref~e totha Slc'ireJmentsIi' :. 1

-, .:

~,;,•... I'

. "• I ~'.I ,',

I

'.. ;I

'. !.'.

, . ,.~.;' _~ f·

~;1Al .:. I .~

f· ••:;:1 f~.-~-{~

.1

,.r-,.k .i ,';,.'~t.f'··~-~·.

..... \: '.

.:. .... :i.

,I. 'f' (,I. I

I

,, 1

"II

!'

,.

I .

: ~,

1 '

~:y..: I

I'

\ '; ;[n:~·ik:~~'.~:i

• 1

I, 0;

.• t,· ,.

;'',I-, . I' I:II·!, .' '• .•.. . t

ILOdH••••.•.•.•••.,;••' "benefit plans a(e 'som~times refe(fed,~o;byschemes'. 'supe(annu~~on schemes' :9r ·roIH,..,••.•••.•";..· nA,np,'OT .",.h,,.rn.O •••

~t~lnrl,,,,rn reg~r'ds a retirement~benefit plan ..-errlD1I~VEUS of. the participan~.s: in' the, plan.:

.of retirement benefit plan~by this Standard. I,:', 'f,;' •

I , • .:-

1 .• ,

,St~ndfud deals 'with acc0l:ln~'19 and,rAnnrti,nn'... .lt does' 'not deal v,'iti;l' r~port,s inni\lirl.

rot"rOIMO benefit rights. .I ';"

I I I ~ ,! ' ... .~ .,. I 'I :~.

15 (Revised 20XX) EmpIQY€!f3 Benefits is ,.,..•.•.•.-drr.oA

.co~t pf retirement bt;!n'efitsI ~n.'the fi.nanCial.at~t.,.r"""•..•t••{'1'~I'£IlI~r.1S.t:JefllFethis ,Stand~rd comp,lem~nts AS ~.

~ '.. .' I' .,.;,'!fn,_.l: __ -"- . benefit phmsmay. W defined C("lnb'ibil1H'or'l

require! the creation ,of '.•.""""••r ••••.,. ~~~~~~f;~~~~~t~~~~~~~2~1~~:Il::~~]identity and: may .or <2'

and' fr9m which r.eti~ement.:·.'lllI-t!>rl",.rA•.•"••,·" of wlJeli1er such a:fund is ....r.••.""."';;1

e I' ,. I .. ~.'~

..1

. ~,I.

II', . 2.1-.\ • I!. I',

'"I, .,,' . I ~I

"I i''1 ' .. "

!II I f' '

.' I ; ,.• 1

(: r ,'j I I,)

'\of . !

(

S~~~~Fetiijmleiiitloerl~lfIplPlaaC)C):ss~, 'Ihh~c;li\v~e~;-~spansa":sother-QtJllJJ •••••• to the filiancial,statemfi)rits 'afsr,ich

'. '. :". '.' ",Jb.\,rotirorn""."\.t benetie plans·are bas.~d'on format' rE~'~fl[l~(\l$~t~(

r1'ftI:rm:~I. have -acquired a degr~e of obIigati' '" :While ',sQme ';plans .pe,~mitfr~ITlp.!R¥'~

the plans, it is' uSUql'y difficulti~t:Jrrpll()YE~~ate to' .b~ 'retained. 'The same' basis

informal plan as to a formal plan. .'''''',""",#, d':> r·' .',' i,' ' ~:, _ '::: '. •

benefit, plans: proVide' for the e~lao,lll;:;nm~nn~nnSAr)atleta" 'are made ari~,9utof ~hictl OelnerltSial

rii:lVllKAadlmHllSl:erEKl by, parties who actinn,gno"nl,grlTn,

~:m~.~ are called trustees Jn some countries;"-"'.~.•nn~rn to descrlbe such parties regardles$ a,fii.Wnel~egf.!:

;.~",/i . :, i "..'. .: ' .',.

rU;<~tJl~D1\eiitbenefit plans are norrhatly'described'iasL:n:::I"II;IIC'" benefifp/cms. eaqh having tOeir nU,1'n,,.iiC!tir

q9.C~~!I!;m,~IY\n~~5exist that contain ,pharacteristics,' ~':';~r'¥."!'~.'be de(rjled benefit pl~ns for the "

i

!;'

",

.-, ,

" 2.9, ,

,"

, i•... I'

'.1 • .".. .'~l·~'iJ~I ~:. :

lrlilJtl''r .~. ! r r-}.,iU~

" '}!!If!i :, , . { ; ~

l'f1~n(Hal. stat~rnEmts;, 'of ~ defined c.ontributj~:m'. .of! net ?~$ets available f~r. ben~~~' .

p~Ucy. 'I .' • , , '.: :~t]",' 1, '. 1..1'... • : ·f'V,

f'iQ'fin".rl contri,butiol') plar:'l. 'the amount of' :n~rtit'!in:::liri'"

tdot."",.".."i •......,:~ bY the c;:bntribu.~or:ls·paidby the o•••.•hl•.•'uorlel.IOP);~'1iatif:'Q ¢fflciency and ,irive$t~ent'i,.c ,"'· •••.• ;i.••.•.••~lilW';U\~IJ\;j!n·

bblicialUOIIl'.isusually' disch~r~d by' cOntributions qtr.lJr~'yt·"'s.alqyJ(:ifirequired ~lthOU9t'! such,tpat may be :,achie.vable

"l.1:i:fi·":ar\i'lnl'Hf~"'~I!'; tot fvtpre contr:ibutippS 'and il~V~Sl~~W:~jt~it.~~ti·~:~ .., .

.. L~" _e,- -' ~r~ interested[n"the activities6L_,',h\·'Ih. of their fU14re' 9.en~fits. PaJtic:lpclOtli{

have; been received pr'oP'I~r:~I~Qlltn:>l't12.~~eenAY4:ir"iio. •••,ri·

(tJ:ico1:&c1t1thEHighlts of beneficiaries: Anp~an. . . ': .. ' .;. r , '

! ' .

:'1' "to· 'fII ••

.. . , I

. , ".: ,.

J ,

; ;. -. •j I:' ;:~ ~ tl ... . J ; .'Hp',~rJlintinn ~'of .signiti~n\ ~Cth/~ti~.1~n,g~~i,;r:elaUlil91~th~p'lan~i'~ Its

I:~,: .'J ?~.-.,.' ... T-·- .·",t<:t'f.:>lm.,on'.C> ~e-portjng9n. the: tra'nsacti~n'l?,~, •• v"" and thEf fif1ancial. P?sjti'on of the pI

.: .~ ".l '. .. ". ; I • :. J."h."~~~·"·~bf the in'Vest,rn~n(poll~es.•i

. /' ' ,! . ~.;, ':.'j .iI, ' ~ I ~ .' • t_, l' L

1[: ..r"

• "'ot

,~. I

. , ..' , , ,

". I

, '

(

••. I ,, ,.

• t·"r . , I

, ,"

.ri I

;1, I '

, ,,':'1:',1

a ,~cite disctbsing the' actuarialrE!tjrement beneflts, distingui~p(nand.non-vested benefits; or' I .~. !l:a reference tc? ~hi~ 'inf()rm!'tio~; \~report, , . ", ":. I"

',!;r .' :". " 1 ' ,,' " ,,:ti'l!actuarial. valuation ha.s not been

I~!taten;t~,rlts. th~: most recent valuation.y~luatio!l,·qisclose~: '! ': !. 1; , . , -: ,. ':,

,purposes of p;:lragraph' 17, the a""I.!~!\I~a! :r1~rA••.a,n"',M"'11roi:)l!1n<:>''lt benefits sHall be based 01)

the pian 'on service rendered .to, -, . . .'or projected salary levels with ,'(Jusciosure, f "

;·arro'•••.Qf any changes in actuarial I,rnn1t101IlS', the actuarial p'r~sent value Qf

;al!;O'lbe,discloselj.' :', " " ",t, \ '\ ,', '

.' ~- ,1.,. '.': . 'I'.. I

;f fi clal ~:~talemerits 'l~h~1I explaln i . :Nl!II~l'lln

jQ""LU'~1 prese~fvalue of' pr~mr~ed retirement:for b,~'t~~ts. ar.~~h~'~'O,f,I(~¥fo~, ;:~~:;

1"1 1. •. c"

Ai>n6;:;~:cf on llliNirha"ncitirr;bc;Sr11'c' )ftf"h_eaif11~~oti:ln~':ar~d;'thl!bilbiti~fdf~)riirili~~)t~a~?r!I~~r!\[:~.+~'-:,Lr-~Jt'-~fure " .to't~~,p!t:ur~s

O[llerc;umfQ efficleOF~,ofth~ plan: 'Ii I .~ . I ",. .,'I I I '. .' '~I

Ai defi~ed benefit plan'~eed~ '~heperiodic anvice':1inan8al; conditi,(1),of the' plan; 'review 'thetC6htrf"butionlevels;' ,': " i" " ,J '. I· I . t _ I r . t

• "It' I .1' I

";nhQ qbjqctive 6tn~porting.by' a ·defin~d I'\gr.Qt.t'

~nform'ation' about ,the finan~'al resources and; ~""''I\IIT'Q'" HJ1~I;lt'!p'~rhU;la~$8~'Sin9 the ~~t¥'tions.hjpsp~t~ee~',the'beliefi'fsover tune. This obJ$qtIVe' IS usua.lI~ "'",,,,,,,,,,••.n:

;n$lt~telillelnts lncl;yW~~the f~",~Wi~g: " :....'l.i,,; a: descn'ptjon of,signifiCant ,activitie~ fot.

: .i" cran~~~' Jelating to the pla,n,' a,nd.l~s:;~1, I~','c;:bndltio~!p;" " " '; " , ,~,:;'"I ' •.'.I', I~", I' I I ~ . . . '. ~t:··~~I

',. !i:i$~atemimtt:?/~porting'o~;~h'etransa~tio~S !and.'.' i '~he peric)(fand th~ financlal positloq of the. p!ap

1, ;':i ,1.: ",I . ,,:,';. ,i: ' ".', ;.'.'~~L!!n'~c~ , r'i~tuarial 'informatior) either a~ pact of" tp~ ",.~.on-\o

11, 'i "separate report; and, " ;:" '; ...l/,!;'.. I •.I ~ .. '. . I' I' • • I,. .". ¥8·· t ~

. "~I !~ldescripi\on'of the 'nv~sh:nent-poliyie,sl;.i~,,~;::,I':/'i, '!i:' .. "" • ':~,~.L\.H,",,,i., I" "., 11. I, f~ .i~.:..j' ~.. ! : : ,••.. , .

;I~:- i '-~I' , .' .. ti :.~.:. ,.~ t'.11; \" ',I , ',:, !

.~.'. ;\'. 'I: , '3t> \" .: :: I ! : '!I

. !, ': r ! ., , .

" ':{.~ .

- ~. I, "; ,I'

'..~ ,:{<

,~.,

.',

, "

. , .

. .; ~I '.'

: .~! ;; if" .. :r ,. " .'. ','. '(;:.,i11'~ ~:H;~f.i" A;i;,H·

Fll·V;·

.' '" 'J :" ',1 ~ II,j lr,.:t'~.· .I < r I .I-! I I , " .1.. ...~. •• I "!'. " J " . '. I I., r. '.;i': ,j ~:Ji .. '" I .. '. ,.., J:"1 H'i'!., .....~,ri'alt:~resentvalue ,ot"promise~

!lo.tl<Jl:;t .. "., '. 1 ~ ,. !.' '; .,'. . i,. I '" ~ I I • .' I' ' .•,.. -' "~

yalue of,\he expe9tejdpayments by~ltf~"~)la'ecr!:'antireported using. current salarY levelsilhi'iP{~~!iit~:~

tlme q( retirement of pa.iticipa~ts... . . .I '. I I • •II t I I I" ! t

rI"""C::""'C:: biven for·ad.opting a cu;rent salary aOlOCQicil. .,.1 ." I

.~ I " ~ I " • I

; i'the aqtuarial pr'esent value of promised r""'tii-,:,....;."·••••.:h

;:.of\the amour\ts presently' ~'ttri~utaQle to R~lkUQlp~j~l'~be.caIClllated,('YlQreobjeCtively than witt) PfQ1~~~~l~l1~r~;:. inVo\',(es fewer assumptions;' .: '. t ,'\~!~t'Hii~)(1ilt:i1.iJl .j '.J ,".' !: i'.!f •i~~f~a~es .irt· benefits attribu~able' t~ . aI 'obligation 'qf t~e plan at the time ontie ..;(' ~ I;' , . ,; ',' .,.. Ii. ...' .,' . .•,i~'.,lljle,'4mount of toe actuarial present value1", ll~ir\$. cu~rent salary Levels,i~9~!,,~rall~! . In the event of t~rrmnation or l'Iic::"I"i""

'. . '. ' .. ~!." t • , • . .~,

RIb<>c..,.,n"; glyen for apopting a proje'cted satary. .! i ~'". .',;", ;'4 l·· ; " .'. ; , ,f

.litJ!i<-""'<?'j,,' fin~J1~Lal information' sho'lllq be ,preiI+espective .'pnhea~~urfip~to.ns·aod

. 'i' j.!" ' .' . . : .

,I::" ~'nrlkr fi'nql:pay pl~~s.· bene~is are ~dilonM-, 11 11:1 trer t d t 'h' .·..l,! _I ~r .near re !,remen a e; . enee <:.~I~~iA<:'", ,I,,, ._ I • •

....: '~et4m must be .projected; and ,. ,t: ·,i t· ._ •. , .. "

, f~i1bre to \nyo,rporate sal.a~. ' ..'11~.~laryprojectlo~s" .roay result In ·~e n,;ipcirtiil'cif6filiij 'ii~pr)~(j~tl~;{9"~r1'\mlding'.enth~· RI;:lO. IS not qv~r:funded, ort

. plan ',s i~n~erfuf)~e~ ..· ...., 1. . pr~I~~n~'value of promis~d_' .. disclo~~d in the' fitia~9ial ~t~'tpr.n;:>lntc:r.·

lp;~C\eflt'~.:to the .;fate:of the ncr;:ll;~tateil'l'nfJ,"\rl"ln'\ic~t>t1 'retirement oonefits~asea on!,ot()ie~::tEHB::Slat;

magf\,~iJdeof:th,e.p'Otentiaru',~"uc"',"'1Ilthe ~asisfor fun9ing. In . . tli~~I()~ur~,ib.lthe:~ijct';t<;1ujal

.' retireff\ent 'b~nefits, c:r.1.llffilr"jp/'lt

1I.t:Ulmi[]'li:i~ toi!ifi,ic;ale c\eClr\y.tt)~.cont~?d IIIr"'''''..,.".•.••.' beriefitsshou1d be ea(:t'~~tJ,~:IX,~~XPI~'}

,!;"f",..., •.•""fihn aboui the' adequacy' of.tne'~Plf~Qt1~~l.!f:l:IJ. bas~d on sala~ ,projec;tions~

. Of in'\he actuarYs report.' ;.• I I,' ~ :!' t ~ .'!, "

. . I :.,' :.1 ,

of actuarial, valuations\ ;

.' '. , " i, , ,

. i· 0

, I,:;f.

,!

I'I'

,I I'

i; ';

.! ',.,.,,... : ",., .

'f .1,11'1 .,t f ,.

, '1

'I'.'II

'1 I r" ~;' . \ .

1 •

, .'

•. .,"!

".". ,..';

,J ""." 1

; I

, .'

. ,'financial' statements: that inClude' a'.;?';~a.t~~m4~ri\benefits and astateri.len~ of

nr",u,.,.n·, vafuea '. nota to the statements.

, , ~ccompanied by a report from. .~fpromised r~tirer;nent oe!nel'1ts:

I • • . ~ .• It

financialstatel)1ents that includebenef~~':and '~!staiement of ,"with the ~ctuc\rial present value ;of nrt\r'ntC::PI J ,...",re~t1l\prlt".h""nj:.titc!

in.a sep;:Irate actuarial report. ,~.. ! .. ,'" : • ;,. I', .'

I:: I, . 'j' .. f· ,,: .'

, forM,at"a trustees'; report .In the,;J,,~'Ml-"lj' andan';ihvestment report may also ~1!Jr-.ni'Y\n,~n(/.lh':':fin,

, . '1; !;~:1' ~ "f .. !;' i ; ~ .' , .' i: ., in fav.our of the formats described' ". -,. ..; I '.' •

lcation of pr~mised retirementthose '~PRroacl1'eshelp users'

ofthe :pl'an'sppligatibns.,;••".~':"•..•.•onf., 'should be 'complete in- thl'.m':::AhJA~:'r~lnrli!r;-n,Fir,phn

I" , • ' ' ,,'" ' l:i0weve~i sorne.belleve that

, ~ol,Jld give ;t,ll~ (mpr,ess,ion,that a Haqility ,.,.,.'•••••.••,'v~l~l' of ,P(?,r:n.ised':r~t~r.ementbenefits" chal';;lctenstlcs of a liability:;; ,1'1,:' 'i' I

. i. f. '." ,1 I. .' .' ,f

:."Those who favour' the I format, de:scnoeoen!":I ~Ctuc;lric;llpr~~.~nt value of 'p'romi~ed retire.II1)~i'ltPt3.IIl.&1'lt$:t$hpX't, a' statement' 'of "net assets ,available for oenents;'. Pr~"'agraph 2~(a) or even be ,di~closed:in "

.'~:i!iltlt'lU'i""";~i.!l:.re CO~\J[3.red,di~ectlY'~~t~ pl~n C;I.::;'::'~. :.~.~{~!'.\'l~·~,\fi~'~.";1, "~ ,~,"I " .• .

, '" I' ; '",

. It:' .. JI i " ,.':'1 ~ " l'i ":.0;'0': .; • • "i' \ "

1, ' ~'i "'11 •II' t : •i f

:~ -,.;

.1 , •"jl. ;!."

',' " '~..;'f "

; ,

. !"

. ,

:.J ',t

'J! :

','!! . . I

, '.1

•.I

I, •" '1

••• I . :I'~: ,":. -i •.',

.,

I· •

i". ;

. ,I

! •

• , f ,.\ ",.;,; Ihi :

"! ~

','

" I

j,

",It

,t,~.

f ,:-:

'·1, "

!, 1'1~I ..;•.•., r'

; .

i I.1 (iii)'1·'I~,

'Ji;J "

.' ]1 '.,1,1 .;! (iv)., I," ,I . "j;~ .',; .

;1' ~. "

!.:. " ! (V):' ;' ..~,

! ,

.~..'It:"

, ,

. " I. I :,';1"

I. !

,. "

!. ;.1I . ~ .

..•. .i ,- i~, ~! ',:i'l ",! f i \

" •••• Wl .:', I ~ I~r defin~(i' benefit "pl~ms', the aGtuarl'ai In.: r"",,·onU:. !~.";le~rement. :.Qenefits..(w~i~ may distinguishl De1twE1lenjl\:'''·''f''''~; belliefitS"':'and~f1"; :';'I l.h?~-vested .'be.nefi~s)based ~n the be~e«t~ :.P'r9rlll~i~~,I), : I~t~eplan.: 9n. service reDd~red to date Bltlher'i!CIUI..~,;','~ I,,~els or Rr~jected Is~lary tevels; thi~ infomnationtJmlav'i~ :, I'a.ccompanYln~ act.uarlal·report to 'be Inrlfirin;<'\Mit •••

.\:.( .1 IPrncia~ st~~eme'1tsiand ..'

',. f~~ defin~d: benefit ,plans~ a '11'· "" ••• ' •••••• _i •..•ti" •.•

~~sumptiQns ,.made.:·antl: the method···. IP~sent v~tu~ of p~o'mis~ retirerne~l' ..•• It. ,. i··' .,

I I'" _ •.of a retirement bEmefi~plan ,......,•.••••.•••.••the fif\ancial statements or ~~I?_~IHtE~Jj~1

.1'" • I', '

I,I,

• ., • '.. I •.. i •,:i, .[. "

It~e nam~sof the emplo~er;s and the.1

1(, 1.( .1,1 J .", ,

I I • III~. " 'I • •

'~ little nUfl)t?e<of ~ahlpiRai1t~ receiving pen~l~la!$r)Q~, P,articipalilts; classifi~d a~ appr9pric)te~:;, ," t . ; ( '\ .! ,;" .• ' . i: i •.. ."J;.re tY,,;,t~Te~~e?'c~ntrib'ill,O",

.~·~d)Ii. : I ~ note~~llQ whethe~';r~-~aalrti(:IDam's,~bnU)triplutEI~toc;ml~..' ;'" ..~ .~':. ..; " . ., ' ' '... ,(ell ,I..,~~d~scrip.t~Qnofth~ ~e\i~ement . . ..;,!".;. I ; I 'j I '. . '••.r . '.',." I .,.., . . .•.. • ... .

I': tf)' .,:',I " a descriP,tion 6f ~n~ pi~n termination' .,.;,P•..•..••••

.; 'I 'it,': ..~ .: ' .: •. " ':, I .. . •.... .,

I .(g)' ;' IchangeS 'ill items (a) t9'(f) during the' .': I' . ',! 'J ' '. '!'. .! ' '. !.'. • .'.. •..:

" It is' ndt uncommon to refer to other document~ that' .. i,~I~n~in;Which.th~p~anisdes~i:ibed. and to I,· ..

.. oh~nges, .. !.... ..' '. .'•••• ' f I',j I'~· i 'Ii ,. . . i

'L-'''I''ILo· ct\V~Qat~"::,',,'

".

I:

"

I.

wh~"~isc:hargil'lgtheiratt~stfunction.1t~ylllmlr\A Mrhether this.'Ascounting standar~ Is compli~d·

audit.\I1 the evept of art!·~eviaUo" from U.lIl.!y'\~)\n]~1

.lfj~iri.l:<l"e'~cil!N~.edisdosQres in lh~ir audit reports so that'II~llrii~\.lI!-'l!~.Q'IIi;l\lc'O$, : t . ~ I '. I(~ .'.. , ..

I ••

',1"

." ••. j r I,. I

• IIii" "

'., I

A!!..',-:" ".1

j" I· .• -

. I I '., ' ..-,

i~1pot a pari, of' the AccO,untinp ...•n:.n,..., •••..,...,~to bririg .•but the f!1ajon differences", if!36 (/~~ed 2QXX) a~d' the, COlreSDOllQJr'KJu,rJrSJmaJr,onru

Accoun,ting an,d,Reportirig by

I, :',"

". ,'I

"" ,J" I

1 '····i·, I, "I"\j'1, '

,1:'""

, ,

willi:I'

Is!",i j'.,',

" ,

, ,I ~ i

" If, !

"I'~;~.1. h"":'\trl,', '

L ,I

,"

, I~ ,

',-i'"• ," I ,

,',"I

" :I"I" l

',;' '

: ': I~. . I

,', .:,~, ''!\, '

I'...j"

;. ~,..I,

, ;.

,"

""

" i,

"

'",',

1 : i,

; i

"

" '"{ip...-.;

~: ,.I •••. ,, '

'I

",

lAS' '34:I. '. I

, ,, "i,, I

,i I:.1

"

" "

, .' "

:;;~:'tc:-,~'.

'I

'\',I

I

" I!'

,I ,

':

i ,I I'

/!, ,

t'

Ii,1

",

11'I

II

"\I I 'I ,I

..

No.

To1.

111111111111

• ,ci i'*Il ~. 'IQ1f lR'IIR') 1EMPLOmS' PROYlD£NT fUND ORGANISATION 1

(MinIstry c:I UIbour • ~ Gowt. fA tIIdIa) [•...Mr:..t:~~.~~llO~.l SPEED POS 11~ HIdtIiBItawIn. 14,1ibIkIIic.n. PJaat. ~,.... - 110" 1

E-IIU18(1)2OO4ISubCommitteeNol.llI »«:~'b Dated: 29.2.2012, 11

~~~~ • 1Shri Sankar Saha. A ; i~;f.'" 2012 1Chairman, Sub-Committee on Exempted Establishments, ,,- .~tf.\\'.· 11Secretary. All India Committee United Trade Union Centre, 1Lenin Sarani. nl2J1. Lenin Sarani (1st Floor), Koikata ..700 013. 1

111111111111111111111111111111111111111111111111

2. Shri Babulal B. Too;,Managing Director,MIs Todi Estate, Sun Mill Compound,Lower Parel, Mumbai ..400013.

3. Shri M. Jagadishwara Rao,National Executive Member, BMS,D.No. 31-3-312, Gown Nagar,Opp. All India Radio Station, Kurmannapalem.Visakhapatnam-530046 (A.P).

4. Shri B.P. PantSecretary, All India Organisationof Employers Federation HousV/10, NCERT Campus.Aurobindo Marg,New Delhi-110016.

.•

5. Joint Secretary (Social Security)~Ministry of Labour & Employment,New Delhi.

Sub: Minutes of the 31st Meeting of the Sub-Committee on ExemptedEstablishments. -$~~~---

Sir, vPlease find ..~~ herewith approved .minutes of the 31st Meeting of the Sub-,

Committee on ~'.' •••~ ,·heJCI·on 29.4.11 at Koehi for your kindinformation. Further, a dtaft f~ of .saJanceSbeetie also enclosed herewith as perdecision of the last meeting.

Encl.: As above.

C: . lJ'(' 'J..:.~

·l·~lI...· •.

(' /1 ~, I

" J

{':/

c:r:

r

('

(

(

(

(

(

(

(

v-DRAFT MINUTES OF THE 31ST MEETING OF THE SUBCOMMITTEE OF CENTRAL BOARD OF

TRUSTEESrEPEl ON EXEMPTEDESTABLISHMENTS

Date: 29th April, 2011Venue: Rotef Gokulam~PCtrk, Kaloor, Kochi -17 (Kerala).

Time: 11.00 A.M.

The 31s' Meeting of the Sub Cornmlttee of Central Board of Trustees, EPF on Exempted

Establishments was held under the Chairmanship of Sri Sankar Saha, Hon'ble Member, Central Board

ofTrustees, EPF.

The following members ofthe Sub Committee were present at the meeting.

1. Sri Babu lal Todi, Member, Central Board ofTrustees (EPF).2. Sri M. Jagadiswara Rao, Member, Central Board of Trustees (EPF).

Sri B.P.Pant, Member, CBr (~PF) and Sri S.D. Xavier, Under Secretary, Ministry of labour

could not attend the meeting due to pre-occupation. Officers from the Head Office, EPF

Organisation, New Delhi also could not attend the meeting due to the Air India Strike.

The following dignitaries, who were specially invited, attended the meeting.

1. Sri T.L Jawahar lal, Member, Regional Committee, Tamil Nadu2. Sri M.M. lawrence, General Secretary, CIIU, Kerala.3. Sri Dlnesan, State Committee, UTUC, Kerala4. Sr.iMohan Kumar, State Committee, UTUC,KeralaS. Sri V. Sudhakaran, General Secretary, Port & Shipyard Mazdoor Mahasangh (BMS), Kochi,

Kerala.6. Sri K.S. l:larlkumar~Mb,fACT PFTrust, Kochi7. Sri V.B. Thomas, MIs. FAcTPF Trust, Kochi8. Sri Sasidharan Nair, MIs. FACTPFTrust.9. Sri C. Ganesan, Employee Trustee, Ashok Leyland Employees Ennore PF, Chennal10. Sri Balasubramanlyan, Employee Trustee, M/s.Ashok Leyland Employees Ennore PF,

Chennai.

The following officers representing the EPFOrganization attended the meeting.

1. Sri K. Srinivasan, Additonal Central PF Commissioner (Tamil Nadu & Kerala Zone), Chennai2. Sri K.V.Sarveswaran, RPFC (I), Chennai Region.3. Sri V. Vijayakumar, RPFC(I), Madurai Region.4. Sri M.P. Varghese, RPFC (I), Coimbatore Region.S. Sri N. Balachandran Nair, RPFC (I), Kerala State.6. Sri T.R. Sughdev, RPFC (I), Tambaram Region.1. Sri N. Gopalakrishrian, RPFC-II,Sub Regional Office, Koehi8. Sri S. Kumar, APFC, ~.onal Office (TN & KR),Chenna\.9. Sri K.K.Aravindan, APFC, SRO, Koehl.. 10. Sri S. Govlndan, APFC,SRO, Koehl.11. Smt. V.M. Chandramathy, APFC, SRO, Koehi.

Sri N. Balachandran Nair, RPFC (I), Kerala welcomed the Chairman, other members of the

Sub-Committee and all the dignitaries who were specially invited, to the 31st Meeting of the Sub-

Committee of Central Board of Trustees, (EPF) on Exempted Establishments and has expressed his

Page 10f9

(

cr-r

, ,.~ f

(' , j

(

c

l.

thanks for giving an opportunity to Kerala Region to host this meeting. RPFC(I), Kerala has specially

expressed his thanks to some of the partidpants who have taken much pain to attend the meeting

even in the situation of non availability of public conveyance because of the 'Harthal' in KeralaState..

on this day.•Shrl K. Srinivasan, ACCbriefly explained the members of the Sub Committee on the specific

functions of Exempted and Un-Exempted establishments in Tamil Nadu & Kerala Zone. The

Additional CPFC,Chennai further informed the Sub-Committee that the Tamil Nadu and Kerala

lone is one of the biggest zones in the Country and have more than one crore of accounts. Most of

the members in the States are very much aware of the social legislations and the officials have been

trained to cope-up with their requirements. There are 17offices in both the States, 11 InTamil Nadu

and 6 in Kerala. The number of voluntary coverages under Section 1 (4) of the Act is also on the

higher side in Tamil Nadu & Keralawhich indicates about the willingness on the part ofeven smaller

establishments to come under the Act voluntarily for extending social security benefits to the

workers. Every year, during the month of November, the zone Is conducting Compliance

Audit/lnspectlonsof all the exempted establishments by squads consisting of RPFCs/APFCsand

Enforcement OffIcers. After the Introductory speech, Add\. CPFCinvited the Chairman to address the

Committee and to take up the Agenda for deliberations.

The Chairman welcomed the members and officers and Invited them to make out their

points regarding functioning ()f th-e.Exempted Trusts In the zone as this Is the-first ·meeting of the-

Sub-Committee at Koehl.The Chairman hoped that the next meeting can be held at Bangalore. The

Chairman opined that the Committee found that there are deficiencies in various ways in the

functioning of the exempted establishments. In many ways the establishments are not coming upto

the expectation of the EPFOrganisation. In many cases, there are violations In the matter of timely

deposit of contributions in respect of the employees with the Board of Trustees within fifteen days

etc. The Chairman further opined that this Committee is chaired by a Trade Union leader and

consists of employer's and employees' representatives and that Is exceptional in this era. He

expressed his thanks to the EPF Organization for its Initiation to have such provisions. The rate of

coverage is going down when compared to the total no. of employees engaged through contractors

etc. The exemption granted to the establishments running in loss for a consecutive period of three

years, should be cancelled as they lose their right to remain exempted. The rights of the workers are

to be taken care of. The Chairman appreciated the steps taken by the Kerala and TamilNadu Regions

as the ACChas already briefed on the functioning of the exempted sector, but opined that he

personally feels that overall compliance by the exempted establishments needs to be improved to a

greater extent. The Chairman further expressed his anxiety that even at this stage of money value

Page 20f9

(

r:n ~.

••••t>c:r: !

r:

r('

r'(

(

(

(

(

r(

(

going down day by day, the EPFPension given to the members is very low and it is not sufficient

even to cover the minimum requirements of the pensioners. The ESICorporation has raised the

wages limit to Rs.15,000/- but the EPFOis still limiting the same to Rs.6500/- only.

The Chairman after his welcome speech invited the participants to introduce themselves.

The members of the Committee, the special inv'tees and the Officers of the EPFOhave iritroduced

themselves. The Addl. CPFC has invited the members, the trade union representatives and the

representatives of the establishments to inform the Committee the problems if any they are facing

in the implementation of the Scheme Provisions.

Sri Babu Lal Todi, Member, CBT, EPFsuggested that Shri K. Srinivasan, ACC,Chennai shall act

as the Secretary of the Committee for its proceedings which was accepted by the Chairman.

Sri M.M. lawrence, General Secretary, C1TUKerala informed that he is attending this

meeting of the Sub-Committee for the first time and he will be submitting his points to the

Chairman In writing later.

The representatives from MIs. Ashok leyland, Chennai and MIs. FACT, Kochi have

expressed their concern about the withdrawal of two options available to the pensioners of EPFl.e.

Commutation and Return of Capital and requested the Committee to take necessary action with all

the concetned to reIntroduce the benefits. They further informed the Committee that though the

new Pension Scheme has been introduced in 1995, no revision in the pension amount has been

-rriade.PensioifamoUnt sanctioned is ml!agl!r1n most of the cases and it-has to -befncreased, The

ACC,Chennai informed that the amendments to the relevant provisions in the Employees' Pension

Scheme, 1995 were done by the Government of India taking into account the various factors. The

representatives of the establishment MIs. Ashok leyland, Employees Ennore PF informed that they

have introduced a separate superannuation Pension Scheme also for their members with Mis. LlCof

India and the Scheme is having a Commutation provision.

The representatives of Mis. FACT,Kochi has informed the Committee that the accounts are

well maintained In their Trust. The representatives informed that their pay revision has been

implemented with retrospective effect and the arrears have been paid in August, 2010 and in view

of the benefits available under the Employees' Pension Scheme, the members have opted to

contribute on the higher salary over and above Rs.6500/- Into the Pension Scheme and consequently

they are eligible for pension on their actual salaries. However, the outgoing members are given

pension with the pensionable salary restricted to Rs.6S00/-which needs to be looked Into.

Sri M. Jagadiswara Rao, Member, CSThas asked the representatives of the exempted units

whether they have any suggestions to discuss in the Committee for the improvement in the running

of the Exempted Trust. The representatives of the establishments Informed that the fund is well

Page3 of9

cc:n(>. "\ if

('./'/-

(:,,/

maintained but shared their difficulties in providing higher rate of interest at 9.5% as declared by

the EPFO. This is because of the fact that the yield on investment made .by the trusts as per the

pattern of investment is lower than 9.5% and consequently, the employers of the exempted

establishments are put into strain. The repre~entatives of the establishment MIs. Ashok Leyland

opined that sizable amount of trust money is kept in Special Deposit Scheme. As the yield in Special

Deposit Scheme is only 8%, the funds are to be either facilitated with high rate of Interest for Special

Deposit Scheme or they should be allowed to withdraw the fund and invest them in high yielding

securities. The Chairman opined that the Investments are to be made within the frame work of the

standard Pattern of Investment prescribed by the Government.

Sri V. Sudhakaran, General Secretary, BMSinformed that General Workers working under

exempted establishments should be elected to the trusts and there should not be any nominations

from the trade unions. Sri Sudharakaran further complained that the circulars on any changes in

EPF,EPS and EDUSchemes received from EPFOrganization are not circulated or made known to

the common workers by the exempted managements and trustees. Trustees should be made

responsible along with Principal Employer for coverage of contract workers. Pension should, be

modified and a minimum pension of Rs. 3000/- with DAshould be introduced under EPS 1995

Scheme. 'Medical Insurance to EPFPensioners should be introduced. Proper Inspection should be

carried out in exempted sector by EPFofficials and also there should be interaction with the workers,

and trade unions onthe proPer fu-nc::tioning-of exempted l;rusts.

The Chairman opined that it is correct that the common workers working in the

(

establishments are not aware of most of the changes taking place in the Schemes and the

establishments are not displaying these changes. The members should be made aware by

conducting seminars.

The Addl. CPFChas replied that the EPFOIs conducting two day~ regular programme in the

Zonal Training institute at Chennal for the awareness of the EPF members (Employees) and

Employers both in exempted and un-exempted sectors by collecting only nominal fees. The existing

provisions and modifications on EPF/EPS1995/EDlI are covered in the said programme. Further,

the EPFOIs also having a website and all amendments and circulars are available in the Web site

www.epfindia.gov.in

RPFC(I), Kerala has informed that during the last meeting of the Regional Committee, EPF,

Kerala there was a request from the trade union leaders to conduct seminars for the benefit of

employees and trade union leaders. On the request of the trade union leaders, we have already

conducted one seminar at Idukki District and seminars in other districts of Kerala are also being

conducted.

l

Page40f9

(

r:r:

n ,~,c('

('

r:c(

(

(

(

t(

c~(

c(

(

(

(

i\.

The Chairman opined that the trade unionists should also share their responsibilities in

successfully Implementing the provisions of EPF& MPAct.

Sri T.M. Jawahar lal, Member, Regional Committee, EPF,Chennai drew the attention of the..Chairman on the difficulties experienced by the trusts of exempted establishments on the

•investment side of the fund. He opined that the rate of interest declared by the Govt. this year is on

the higher sidewhen compared to the yield the trusts are getting. The higher rate of Interest at 9.5%

on EPF,though it Is a matter of satisfaction for the members but the exempted trusts finds it very

difficult to pay more than 8.S%. Even most of the Special Deposit Schemes are not yielding high rate

and the yield is only around 8%. 'It is a challenge to the Exempted Trusts. The Govt. can think on

long term high yielding rate of Interest Schemes. The Govt. Securities and other securities are giving

low yield.. Because of this position, some of the exempted trusts have surrendered their exemption

and some more are thinking to surrender. The employees have to be taken care of regarding the

interest. There is no alternative to meet the high rate of interest paid to the members. The

exempted establishments should not be pressurized to pay 9.5% of rate of Interest. We have to seek

flexibilityregarding investment pattern.

Shri Jawahar Lal further informed that the cases of grant of exemption are being delayed by

the EPF Organization. The CBTand Ministry have to verify the same. There are so many exempted

establishments asking for exemption as per the new amendment to Income Tax Act. These cases

ha\le~notbeen dearedbv the EPfO.-ShrfJawahar lal furthefCfplned that thetrustees to' conduct the .

election to elect members from the employee's side has caused lot of difficulties for the employees

and employers. Wherever there are recognized unions, the unions have to nominate their

representative to Include In the Committee.

Addl. CPFC,Chennal has replied that there may be some difficulties to the exempted

establishments in the matter of rate of interest at 9.5% but there are some other trusts also who are

giving more than 9.~% interest. Further to reduce the problem, the surplus fund available in the

trusts should be utilized for giving at statutory rate or higher rate of Interest. The Head Officeof the

EPFOhas issued a circular dated 17.3.2011 on the subject. The Head Office of EPFOrganization is

processing all cases of exemption on a fast track. All these relaxation cases are getting cleared

expeditiously.

The Chairman informed that the election to the Board of Trustees is the question related to

democratic value. The workers In the Company should have the right to be elected and to be in the

Board to do his best in the Board. If there is a single unIon, only the nominated member of the

Union can be considered. However, the individualworker should have the right to be elected. There

Page 50f9

t:

(''l

r "••••

r-".,,'

r,.'-'

("

('

(

c(/

('

(

(

(

(

cc(

(

(

(

(

(

may be separate Unions but the workers should have the right to elect their representative to the

Board.

Sri Babu lal Todl, Member, C8T, EPFwanted the feed-back from the participants on the

specific instances of violations by the employers, if'any. Shri K.V.Sarveswaran, RPFC-I,Chennai

explained that some of the employers are violating the condition No.6 as provided in Para 27M of

the EPFScheme, 1952. As per condition No.6, the employer shall bear all the expenditure towards

administration of the fund. But some of them resort to book the expenditure to the Trusts. Regional

PFCommissioners, Chennal, Koehland Madural pointed out that during the Inspections conducted In

the exempted sectors It was noticed that in order to cope up with higher rate of Interest to be paid

to the employees on the contributions, the Trusts resort to grant of refundable loans liberally to its

members. The refundable loans granted to the members ~ on a higher interest and this income is

used for declaring interest to all the members. This sort of grant of refundable loans liberally is not

appropriate. Shri Gopalakrlshnan, RPFC-II,Koehl informed that the employers of the exempted

establishments besides the Board of Trustees are regularly Informed on the irregularities noticed in

the investment pattern for corrective actions.

ACC,Chennailnformed the members about the issues concerning deduction of TOSby the

exempted establishments whenever accounts are settled in respect of the members who have not

completed 5 years membership. It was observed by many of the participants that newspaper reports

have appeared about the huge sums-demandedby-thelncome Tax Department from the RPFCson

the settlements done by them in respect of the un-exempted establishments wherever the members

have not completed 5 years membership but have chosen to withdraw the accumulations.

The Chairman opined that the PFmoney of the workers should not be subject to any TOS.He

further felt that there is a scope for enrolling large number of employees into the soda I security

manned by the EPFO and no employee can be deprived of his rights. In order to safeguard the

interest of the workers, exemptions granted need to be cancelled when there is no proper

compliance on the expected lines. The Chairman subsequently made a critical review of the

functioning of the exempted establishments WithinTamilnadu & Kerala States on the basis of the

statistics placed before them.

Shri M. Jagadlswara Rao, Member, CST,EPFopined that the instances of various kinds of

defaults are observed more In Chennai Region. He further stated that the contract workers

employed by the exempted establishments are covered in various states under the un-exempted

category. The employers of exempted establishments are responsible for non-enrollment of any of

the contract employees engaged in various States/locations and notices are to be issued to the

Page 60f9

(-

r:r

lr

n0,;cGG('(1

C(

cCC

C(-,

('

(

(

(

l

employers as well as Trusts in this regard. Shri M. Jagadiswara Rao, Member, CBT, EPF further felt

that the Trusts should also be responsjble'for non-enrollment of employees.

Shri M.P. Varghese, RPFC-', Coimbatore informed the Sub COmmittee that in many of the,.cases, the compliance is done centrally in a single code number and workers are distributed to

, .various states/sites. It Is very difficult to assess the actual extent of evasions and hence wherever

larger concentration of workers are available in sites, provisions of Section 2A of the Act Is to be

resorted and compliance is to be secured locally. The Chairman of the Sub Committee felt that the

basic wages Indicated by employers in many cases are very less for the purpose of EPF contributions

and it is even below the minimum wages or statutory limit prescribed. This practice cannot be

accepted and employers have to comply with the statute in the manner desired. All the Officers

present in the meeting felt that there is an urgent need for raising the statutory limit of the wages

for contribution to EPF as the present limit of Rs.6SOO/- Is meager and many of the employers are

resorting to evasion citing that the employees are falling under the definition of excluded employee.

Sri Babu tal Todl, Member, CBT,EPF agreed that there Is a scope for Increasing the statutory limit of

wages but it may not be fair to insist the employers to pay contribution on the total wages as there

are different components of wages. Sri Sabu lal Todi, Member, CST, EPF further felt that with the

insistence by the EPFO on enrolling even a single day worker is creating hardship to the empJoyers

and the Organization can think of reintroducing the concept of eligibility period for enrollment

which was In vogue some time back.

The Chairman summed up the various Issues raised by the participants and thanked the

participants representing the industry. trade unions and trusts for their valuable suggestions. He

assured that the various Issues raised will be taken up with the appropriate forums and proceeded

to take up the other agenda items.

At this juncture, the invitees other than the officers of the EPFO and the members of the,

C8T, EPF have taken leave of the Committee. The deliberatlons on the other Agenda Items are as

follows:

Item No.1: Action taken statement In respect of 30th meeting of the Sub Committee onExempted Establishments.

Mr. Jagadiswara Rao, Member, CST, EPF informed that the Action Taken Report is not

. reflecting on the suggestions/observations made by him In the last meeting. He requested the

Chairman that the Action Taken Report on the specific suggestions made by him may also be

indicated.

Sri Babu lal Todi, Hon'ble member, CST informed that when the exemption granted to the

establishment is cancelled there is considerable time lag towards acceptance of Past Accumulations

Page 7 of9

('""

!'\ .

c(~

(

(

(

(.

(

by the EPFO. This creates hardship to the members who resign during the interregnum period to get

their accounts settled. Shri 8abu La!Todi felt that a brief note on the exact procedure to be followed

on the issues concerning the Transfer of Past Accumulations, Its acceptance etc. should be placed

before the Sub Committee during its next meeting for better appreciation of the issue.

Item no. 2: Status Report on the Exempted. Establishments of Tamil Nadu & Kerala

The Chairman Informed that detailed discussion on the status of the functioning of the

exempted establishments in Tamil Nadu & Kerala was held In the presence of Officers and Special

Invitees. SriJagadlswara Rao, Member, CBT,EPF opined that the EPFOshould be very restrictive In

granting exemption to the establishments and should not be liberal In this area in view of the

instances of violations observed.

Item no. 3: Format of the balance sheet for Exempted PFTrusts

The Chairman explained about the salient features of this particular Item. The CBTMembers

made a detailed analysis of the contents of the items placed before them. It was informed by Sri

Jagadiswara Rao, Member, CBT,EPFthat he needs some more time to makesuggestions to the Sub

Committee to this specific issue. Further it was felt by the members present tha_ the format of the

BalanceSheet and Schedules as mentioned in the concluding para of the Agenda Items sought to be

approved. may once again be circulated to the members by the EPFO Head Office for their

information. Accordingly, it was resolved to defer the item.

ftem-no. 4: Process()fgrantofExemptJon~~-

The note on the process for grant of exemption was discussed by the members. The

members even while appreciating the efforts taken by the Head Office i~ scrutinizing the

applications due for grant of exemption felt that there is a need for better scrutlnv at the field level

even before recommendation of the cases for exemption. Sri Jagadiswara Rao, Member, CBT,EPF

opined that the field Offices of the EPFOhave to make it clear that the establishments satisfy the

conditions and the Enforcement Officers are to be appropriately oriented to scrutinize the

applications with reference to the conditions prescribed. The funds will be more safer in the hands

of EPFOthan with the exempted trusts. At this point, the Chairman made a criticallevaluation about

the actual quantum of amount in default by the various exempted establishments and asked the

RPfCs In-charge of the Regions to clarify on the Individual cases of defaulters. The Chairman

summed up the difficulties on this item and opined that the process of grant of exemption are to be

scrutinized at both the field Offices and Head Office level more carefully In view of the large scale

instances of violations by the exempted establishments. Similarly,the exemptions already granted

need to be cancelled Immediately on noticing the violations and they are to be brought to the un-

exempted fold quickly.

Page 8 of9

The Chairman felt that the Head OffIce may take up with the Appropriate Governments for•

issuance of notification at the earl!est, wherever the concerned establishments have satisfied all the

conditions but are in the relaxation stage for a Jpng period In view of the specific problem faced by

them due to the amendment to the Income Tax ~ct.

Sri N. Gopalakrishnan, RPFC(II), SR9., Koehl has expressed thanks to the Chairman and the

Members of the Committee for their valuable guidance. He also thanked the Special Invitees

representing the industry, exempted establishments, trade unions, and also the OffI.cers of EPFOfor

their active participation, views and suggestions.

The meeting ended with vote of thanks to the Chair.

Page90f9

!I~.,l\