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EXEMPTED ESTABLISHMENTS –REPORT OF THE AUDIT

PART –A

I DETAILS OF THE ESTABLISHMENT:

1.1 Name & address of the establishment

:

1.2

1.3

Whether the legal status of the establishment

has been changed after the grant of

exemption. If yes, the date on which it was reported to RPFC.

P.F. Code no. of the establishment

:

:

1.4

Assessment Year/Period under Verification

:

1.5 Date of finalization of the Balance Sheet of the establishment

:

1.6 Name of the Participating Units with date of participation (In case of common PF Trust)

Particulars of orders of approval from the Regional P.F Commissioner for participation.

:

Sr. No.

Name of the P. F. Trust

Name of the participating unit / establishment

P.F. Code no.

No. of P.F. members

Whether exempted or relaxed

RPFC who granted relaxation/ permission for participation

Effective date of relaxation.

1.7 Name of the subsidiaries/ units/ branches/

departments of the establishment with date of incorporation/participation and whether compliance

is being made in the PF Trust of the Holding

Company.

:

1.8 Details of merger/amalgamations, formation of subsidiaries that took place during the last three

years and change in the legal status of the

establishment, if any.

:

1.9 Details of Exemption notification from the Appropriate Government by virtue of which the

establishment is maintaining its own EPF Trust.

:

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Concerned section of EPF Act/Scheme under which

Exemption/relaxation has been granted.

1.10 Details of Income Tax Recognition to the Trust

:

1.11 Assessment year upto which the Income Tax Returns for refund of TDS on Investments have

been filed by the Board of Trustees.

:

1.12 Name of Depository Participant of the EPF Trust with whom the BoT is having its De-mat Account.

Constituent Subsidiary General Ledger Account

Details :

SDS Account Details :

Saving Bank Account Details:-

:

1.13 Name, Designation and residential addresses of the owner/proprietor/partner/Managing Director with

their contact numbers (Landline and Mobile & email ID) who are responsible for conduct of business of

the establishment and compliance under the

provisions of the EPF Act.

:

1.14 Names of the Banks and their address where the establishment maintains its accounts with their

Account Numbers and IFSC code numbers.

:

1.15 Whether all the irregularities/discrepancies pointed out during earlier inspections have been rectified. If

not, issues outstanding with reasons.

:

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1.16 Details of records which have been relied upon for

Audit viz Attendance/Wages/Salary Registers, Books of Accounts viz ledgers (including all accounting

heads viz. loading, unloading charges, transportation charges, contract labour charges,

commission charges, stipend to apprentices etc.),

cashbooks, Vouchers etc

: Sr. No Name of the Records If examined,

write specifically, YES/NO

If yes, period involved

If no, state reasons for not examining the same

1 Attendance Register

2 Wages/Salary Register

3 Balance Sheets/ PL Accounts

4 Cash Books

5 Ledgers

6 Vouchers

7 Any other record

II REMITTANCES & RETURNS:

2.1 Whether the amount of EPF Subscription along with the

matching contribution of employer has been received by the Board of Trustees from the employer on or before

15th of the every month following the month for which the contributions are payable except for the months as

indicated in the separate sheet enclosed for which the contributions have been received beyond the

prescribed time limit and as such damages and

interest as prescribed under section 14B and 7Q of the EPF &MP Act, 1952 are payable by the

establishment.

:

2.2 Whether the Salary/Wages shown in the Registers/Pay Bills is in agreement with the Books of Accounts/Balance

Sheets. If no, the reasons for the difference be given.

:

2.3 Whether contribution to EPS & Inspection Charges dues

have been deposited on or before 15th of each month to the EPFO.

:

2.4 In case of default furnish month-wise details

:

Sr. No.

Wage/Salary Month

Amount Due

Due Date

Date of Payment

Delay in Days

Liability of Interest u/s 7Q of the EPF Act.

2.5

2.6

In case of delayed remittances, whether interest in terms

of section 7Q of the EPF Act, has been claimed by the Board of Trustees from the employer.

Whether damages under section 14B of the Act have

been levied and recovered by the EPFO.

:

:

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2.7 Whether there are any assessed damages outstanding

against the employer

:

2.8 Whether the Establishment has filed the prescribed

monthly/annual returns within the specified time limit. In

case of default specify the details thereof.

:

2.9 Whether there are cases of missing contributions i.e

amount deducted from the Salary/Wages of the employees but not credited in the members PF account,

wrong posting of contributions etc. If yes, such cases

may be specified.

:

2.10 Whether the monthly PF return in Appendix-A submitted by the establishment during the Financial year reflected

the true picture of cash flow of the PF Trust. If not, discrepancies may be specified.

:

III ENROLMENT & CONDITIONS:

3.1

3.2

Whether all the employees as defined under section 2(f)

of the Act are enrolled as members (after verifying all the accounting heads). If not, the details of non-

enrollment of the eligible employees be enclosed.

Total number member of P.F. members in the trust.

Details in respect of contributing and non-contributing members be furnished. The details in respect of

employees who are member of the PF Trust but

not members of Employees Pension Scheme 1995 is enclosed.

:

:

Name of the Record NO. OF EMPLOYEES Reason for

variation, if any

Entitled Excluded

Regular Contract Regular Contract

Wages/Salary Register

Attendance Register

Head Count (if required)

3.3

Number of “excluded employees”. Is there any employee

who qualifies for membership of the fund but has been shown under the excluded category by virtue of eligibility

parameters as laid down under Para 2(f) of the EPF Scheme, 1952.

:

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3.4 Whether Form no. 11 has been obtained in respect

of all eligible employees.

3.5 Number of Apprentices as per the Apprenticeship Act, 1961

Number of Trainees as per the standing instructions of

the establishment.

:

3.6 Number of Contractual Employees employed through the contractors who are independently covered under the Act

and status of their compliance in the proforma.

:

Sr.

No

Name of the

Contractor

PF Code No Total Amount

Paid

No. of

Employees

3.7 Is there any mechanism to verify the compliance in respect of employees, contracted from an independent

covered contractor? If so the details of records/documents be specified.

(i) Whether contribution is being paid on the wages as

defined in the Act and the Scheme?

(ii) Whether the wages/salary/component of wages in

contractual payment on which contribution is paid agrees with the books of accounts/balance sheet of

the establishment?

:

:

:

3.8 Whether the employer’s share is being reimbursed to such Contractor by the establishment. Please specify the

details

:

3.9 Number of Contractual employees whose compliance is

being made to the Trust by the establishment and whether the same commensurate with their wages.

:

3.10 In case of exempted/relaxed under section 17(1) (a)/Para

79, whether all the contract employees are enrolled to the trust. Details of contract employees and contractors

may be furnished.

:

3.11 In case of exemption under para 27 or 27A of the EPF Scheme, whether the contributions of employees other

than those in respect of which exemption has been either

granted or applied for have been remitted into the statutory fund with the RPFC

:

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(i) The number of employees exempted u/p 27/27A

(ii) The number of un-exempted employees

IV

4.1

EDLI SCHEME, 1976

Whether exempted under section 17(2A) or 17(2B) of the

Act or relaxed under paragraph 28(7) of the Employees’

Deposit Linked Insurance Scheme, 1976

:

If yes, Notification/order no. and date of issue by appropriate authority/Government

:

The date of expiry of the exemption

Whether application for extension of exemption has been

made

Name of the Insurance Provider Agency, approved by the EPFO.

Details of Master Policy of the Scheme

Detail of premium paid to the insurance agency

Whether inspection charges are paid in time? Furnish the details in case of belated payments.

Quantum of benefits available in the Master Policy

:

:

:

:

:

:

If complying as unexempted for EDLI whether the dues

have been deposited timely.

Whether the claims of all deceased employees

have been settled. If no, the details of the not settled claims with reasons be annexed.

:

:

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PART-B

I Name of the EPF Trust:-

II (A) Name of the Trustees with their address and contact no and date of appointment. (i) From Employees’ side

(ii) From Employer’s side

(B) Whether the composition of the Board of trustees is in accordance with Para 79 C of

EPF Scheme.

(C) Whether the PF rules have been amended in accordance with the amendments made

in the EPF Scheme. If no, the details.

III Date of finalization of the Balance Sheet of the Trust:-

IV Claim settlements and account Slips & Grievances :-

4.1 Whether all claims are settled within the maximum time

frame prescribed by the EPFO

Sr.

No.

Name of

the

Member

PF Account no Date of filing of

claim with BoT

Date of

settlement of

claim

Delay in days

4.2 Whether there is an effective mechanism framed by

Establishment for redressal of grievances related to

Provident Fund. If yes, the details thereof. If not, specify the reasons.

4.3 Whether the Loans/Advances to the members have

been sanctioned strictly according to the eligibility as delineated in the EPF Trust Rules, approved by the

RPFC and no deviation has been made. In case of

default, list of such cases may be submitted.

Sr. No

Name of Member PF Account no. Purpose for which Laon/Advance Sanctioned

Anomaly with regards to Trust Rules

4.4 Verification of the rejected/returned claims

(i) Total number of claims received during the year

(ii) Total number of claims settled during the year (iii) Total number of claims returned/rejected. Reasons

for return/rejection as verified from records and

percentage of return/rejection.

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4.5 Whether the accounts in respect of the employees are

maintained electronically and whether the members have access to their accounts and are able to see their

account balance from the computer terminals

4.6 Whether the Board of Trustees has issued an annual statement of accounts or passbook to every employee

within six months of the close of the

financial/accounting year.

4.7 In case if an employee who is already a member of the EPF or the PF of an exempted establishment is

employed, whether his accumulations with his previous employer have been transferred and credited into his

account by his new employer.

4.8 Whether there are cases of Stale Cheques/undelivered

cases where no action has been taken by the BoT for re-authorization. If yes, specify the cases.

4.9 Whether the platform of the EPF Trust has been used for un-authorized private investments from members.

The details of contributions/subscriptions other than deducted from the Salary/Wages of the employees may

be detailed.

Sr. No

Details of un-authorized investment

Amount Remitted Name of the remitter member

4.10 Whether the Residual Balances with the Trust in respect of cases where full and final settlement has

been made have been paid to them. If no, such cases be annexed.

4.11 Whether there are any cases of non-recovery, excess

recovery or irregular deduction of advances from the salary of the member. If yes, please specify.

V Rate of interest:

5.1 Whether the interest declared by the Board of Trustees is

at par with or higher than that declared by the Central

Govt. If not, whether the employer has made good the deficiency to bring it upto the statutory limit. Furnish the

details

:

5.2 Mode of Credit of Interest in the members Account on Monthly Running Balance/Opening Balance or other

mode

:

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VI Investments:

6.1 Whether the Board of Trustees has invested

(within 2 weeks from the date of receipt of the said contributions) the monies of the provident

fund as per the directions of the Govt. from

time to time.

: Sr. No Wage

Month

Investible

Funds

Date of

receipt of

funds by the

BoT

Date of

Investment

Delay in days with

reasons

6.2 Total Invested Corpus as on 31st March,

20_____

:

6.3 Whether the entire amount received by the BoT from the establishment on account of EPF

Contributions, reduced by the obligatory payment made on account of

settlement/loan/advances/transfer-out etc. has

been invested as per the prescribed pattern of investment as notified vide notification dated

09th July, 2003. In case the Investment Pattern is not adhered to, the deviated

amounts liable for surcharge as provided in

condition no. 17 of Appendix-A annexed to Para 27AA of the EPF Scheme, 1952 may be

mentioned. Note: The Table below shall be suitably modified in accordance with the investment pattern notified by the Government.

:

Investment Pattern % amount invested during the year

Norm Reasons for deviation, if any

1 2 3 4

1) Central Govt. Securities Not less than 25%

2) State Govt. Securities Not less than 15%

3) Securities of Public Financial Institutions etc.

Not less than 30%

4) Private Sector bonds/securities

Not more than 10%

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6.4 Whether all the investments in Corporate

Bonds in secondary market has been made through the authorized platform viz

*NSE/BSE/FIMMDA/MCX and has ensured clearing and settlement of trades through the

authorized clearing corporations i.e NSCCL &

ICCL as per the guidelines of the RBI & SEBI and no Off market/Off rate transaction in

secondary market has been carried out by the BoT. If yes, specify the transactions.

: Sr. No

Nomenclature of Investment

Face Value

Purchase Price

Deal Amount

Deal date as per Deal Note

Reasons as quoted by BoT for not reporting the transaction to NSDL

Maximum and minimum Rate of the investment as reported on the platform of NSE/BSE /FIIMDA

6.5 Whether on failure to invest as per the above

norm, the Board of Trustees separately and

jointly have been made liable to pay surcharge.

:

6.6 In case of investment pattern not adhered

the deviated amount worked out is as under

: Category of Investment

Minimum amount to be invested (Maximum amount in case of investment in Private Bonds)

Amount Invested

Amount Deviated

Amount liable for surcharge

6.7 Whether there is any mismatch between the

statement of holdings issued by the

NSDL/CSDL and that issued by the Depository Participant of the EPF Trust. The

details of investments not reflected in the statement issued by NSDL/CSDL may be

specified.

: Sr. No Nomenclature of

Investment

Face Value Purchase

Price

Deal Date Remarks

6.8 The comments on all the Deal Notes with

reference to off market/rate transaction in respect of the Secondary market investments

during the year be given.

:

6.9 Total amount retained for obligatory

outgoing/expenses at the end of the financial year.

:

6.10 Whether the amount retained for obligatory

expenses is reasonable and proportionate to

the amount required for claim settlement etc.

:

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6.11 Whether the securities have been obtained in

the name of the Trust and in dematerialized (DEMAT) form. In case of default the details

be specified in the format.

: Sr.

No

Nomenclature of the Investment Title holder

6.12 Whether the Board of Trustees has maintained a script wise register and has

ensured timely realization of interest &

Maturity proceeds. If there is delay in receipt of maturity proceeds, the overdue interest

may be worked out in the format

: Sr. No

Nomenclature of the Investment

Face Value of the Investment

Interest Payment/Date of maturity

Date of lodging of claim in case of investment in physical form

Date of Receipt of the amount by the BoT

Delay in days

Overdue interest

6.13 Whether DEMAT account has been opened

through depository participants approved by RBI and Central Govt. in accordance with the

instructions.

:

6.14

6.15

Whether all the investments made like purchase of securities and bonds have been

lodged in the safe custody of Depository

Participants (DP)

Verify the financial health of Trust in accordance with the accounting standards

laid by ICAI. Attach a detailed status report.

:

:

6.16 Details of investment in Physical mode which could not be converted into De-mat mode,

due to non-allotment of ISIN number.

:

6.17 Whether the Board of Trustees while raising

sums of money for meeting obligatory expenses such as settlement of claims etc.

have taken prior approval of the RPFCs for premature sale/encashment of the securities

or other investments.

:

6.18 Is there any case of non-delivery of

contracted investment instruments/script. Furnish details.

:

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6.19 Whether any case of securities/bonds which

could not be redeemed/encashed even after their date of maturity, if yes, complete details

thereof.

:

6.20 In case of any of the investment held by the BoT being rated/listed during the financial

year, and rating falling below the investment

grade and the same rating has been confirmed by two credit rating agencies,

whether the BoT has exercised option to quit. If yes, such cases may be specified.

:

6.21 Whether the mutual funds in which the BoT

has invested the money are of the prescribed Gilt Funds set up as dedicated funds for

investment in Government Securities and

approved by the Security and Exchange Board of India (in short SEBI).

: Sr. No

Name of the Mutual Fund Scheme.

Type of Fund

Amount Invested

*NAV as on date of Purchase

Option (Growth/Dividend Reinvestment/ Dividend Payout)

Details of approval of the Fund by SEBI

6.22

6.23

6.24

Whether the loss/profit on Mutual Fund has been booked on redemption/on the year end

or fall/rise in NAV as the case may be.

Whether any commission/incentive received

on the investments made, are being accounted for as miscellaneous income of the

Trust.

Whether the surplus income earned is being used only for the benefit of the members.

:

:

:

6.25 Whether the BoT has obtained the TDS

Certificates in respect of the investment where Tax has been deducted at source and

claim with the income Tax Authorities has been filed for refund of the TDS. In case the

claim has not been filed, the same may be specified.

: Sr. No

Assessment Year

Investment nomenclature

TDS amount

TDS Certificate Details

Details of claim filed by BoT for Refund.

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6.26 Whether in case of membership of the Fund

of an employee being less than 5 years, the Tax has been deducted as per the Tax

Bracket of the member as provided under the Income Tax Act, 1961 ( Refer Rule 8 of Part

A of the Fourth Schedule of the IT Act. 1961)

:

VII Audit of Accounts:

7.1 Whether the accounts of the provident fund as maintained by the Board of Trustees are

audited annually by a qualified independent Chartered Accountant.

:

7.2 The date of submission of a copy of the auditors’ report alongwith the audited

balance sheet to the RPFC concerned.

:

7.3 Whether it is ensured that the same auditors

are not appointed for the two consecutive years and for not more than two years in a

block of six years.

:

7.4 Whether the Company has reported loss for three consecutive financial years or erosion

in the capital base thereby invoking condition

No. 25 of Appendix-A annexed to Para 27AA of the EPF Scheme, 1952.

:

7.5 Whether a show cause notice/proposal for

cancellation of exemption has been received

from appropriate Govt. for violation of conditions of para 27AA of the EPF Scheme,

1952.

:

7.6 Whether the establishment is registered with BIFR

:

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7.7 Whether all commission, incentive, bonus or other pecuniary rewards given by any

financial or other institutions for investments made by the Trust have been credited to its

account. Furnish the details.

:

Nomenclature of Investment

Nature of incentive (Commission/bonus/pecuniary Reward)

Amount Date of credit

in the BoT

Accounts

7.8 Whether any loss has been caused to the

provident fund.

:

7.9 In case of losses to the BoT on account of defalcation, overpayment, wrong/fraudulent

payment, bad investment decision etc., whether it has been made good by the

employer and not from the reserve/surplus of

the EPF Trust. (In case of defalcation/fraudulent payment modus

operandi to be detailed.

: Particulars of losses Year Ended

31/03/20___

Previous Year

ended

31/03/20___

Loss on account of Junk Investment(No interest

and Maturity received)

Capital Loss on premature encashment of

investment for obligatory expenses

Fraudulent/Overpayment/Embezzlement/

Defalcation.

Interest Due but not received

Others (Please specify)

7.10 Complete details of the loss made

good/recouped by the establishment including amount, cheque/D.D. no. and date

of credit in the trust account.

:

7.11 Details of losses, if any, written off by the Board of Trustees

:

7.12 Whether all the expenses of the administration of the provident fund have

been borne by the employer. Furnish the details.

:

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7.13 Whether there are any un-reconciled amounts. If yes, please specify.

:

7.14 A special note to be given on treatment of

investment whether it is marked to market or

amortised or booked on face value with profit and loss transferred to a separate proforma

account etc.

:

7.15 In case the Investment is booked at Cost and premium is amortized, the amount yet to be

amortized as on year ending is Rs.

_______________.

:

VIII

International Workers:

8.1 Whether appropriate amendment has been made in the PF rules in regard to International workers.

8.2 Whether compliance in respect of foreign passport holders is being made on full wages.

8.3 Details of COC obtained (outward) cases and compliance thereof in the PF Trust.

8.4 Details of COC exempted (inward) cases.

8.5 Details of COC overstayed cases, if any, and action thereof

8.6 Details of settlement of claims under the special provision, if any

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Others:

9.1 Whether all amendments to the EPF Scheme

which are more beneficial to the employees

than the existing rules of the establishment have been automatically made applicable

pending formal amendment of the rules of the Trust.

:

9.2

9.3

Whether any amendment of the rules has

been made by the employer without the

prior approval of the RPFC.

Whether there is any unclaimed or amount lying in forfeiture account PF amount with

the trust? If yes, the details thereof.

:

:

9.4

9.5

Whether Board of Trustees is reconstituted? If so when?

Number of disabled workers, PF

contribution (Employees share paid

by the employer).

:

(SIGNATURES, NAME & SEAL OF THE AUDITOR)