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EMPLOYEES' PROVIDENT FUNDiORGANISATIONNEWDI:LIfl·
77th Meeting of the
. FINANCE Atro INVES.TMEN.T. COMM:ITTEE"'. ;~; ': '
[CENTRAL BOARD OF TRUSTEES, EMPLO"(E~~'PROVIDENT FUND]. 'i~ \. . . '. ~'~;f~;{l,f~~~ r~'r ,;'.:~ )! t
;". . "on .. '.f·
osth April, 2004 at"3 P.M. "
"VENUE: • Conference Hall,3rdFloor,EPFO Headquarte r s,Bhavishya Nidhi Bhawan,14, Bhikaiji Cama Place,New Delhi - 110 066.
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Phone no. 26189061Fax NO.26189078
EMPLOYEES' PROVIDENT FUND, ORGANISATION(MInistry of labour, Govt. of IndIa) ,
Head OfficeBhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place,
New Delhi - 110 066
No.Invest. 1/1(75TH )F&.IMeeting/2004!S'l- Dated 01.4.2004
To •• ·1 APR2004,All Members,Finance& Investment Committee,Employees' Provident fund.
Sub: Agenda Papers for the 77th meeting of the Rnance andInvestment Committee to be held on 05.04.2004 at 3.0Q P.M.in the Conference Room, Bhavishya Nidhl Bhawan,14-BhlkaljlCamaPlaceNewDelhi-l10066.
In continuation of this office letter of even no. dated
25.3.2004 on the captioned subject, it -is informed that the said
Meeting of the 77th meeting of the Finance& Investment Committee,
to be held on 05.04.2004 at 3.00 P.M. in the Conference Room,
Bhavishya Nidhi Bhawan,14-Bhikaiji Cama Place New Delhi-l1006b.
Agenda booklet for the said meet: •.: is enclosed..
Youare requested. :r"ldlyto make it convenient to attend the meeting.
Yours faithfully,
~~ (ANIRUDH RAI)FINANCIAL ADVISOR AND CHIEF ACCOUNTS OFFICER
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CONTENTS
ItemNo.
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Description PageNo.
Confirmation of the Minutes of the ,7Sth &76th 2-12Meetings of the Finance and InvestmentCommittee held on 06.02.2004 at Mumbai andon 03.03.2004~at New Oelhires-pectivety.
Statement 'showing the action taken on the 13-87recommendations of the committee.
Review of Investment in respect of Provident 88-103Fund/Pension Fund and EOLI Fund.
Appointment of portfolio auditor for financial 10;4-110year 2003-04.
Continuation of Portfolio Management 111-115agreement for the year 2004-05.
Exclusion of TOR of less than one year withpublic sector Banks while computing exposurelimits.
Study regarding investment management-Approval of financial bids.
Amendment in Para 60 of EPFScheme,1952 toavoid harassment to EPF Members in case ofnon declaration of rate of interest in time.
Status Note about dues recoverable from HMT.
Portfolio Audit for the year 2002-03 .
Any other item with the permission of theChair
c. 1>301..-uOc fT';[\;v1\lET 77th F&! dt 5.4..:'o'.·,~Item 77th :4-l00.l j00 t
116-119
To beplaced onTable.
To beplaced onTable.
120-122
123-141
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Item No. 1 Confirmation of the Minutes of the 75th &76th.Meetings of the Finance and InvestmentCommittee held on 06.02.2004 at Mumbaiand on 03.03.2004 at New Delhirespectively.
Minutes of 75th and 76th meeting of Finance & Investment
Committee were circulated vide letter no. Invst.I/1(75)F&I
Meeting/2004/88198 dated 20.02.2004 and Invest.I/1(75th)/F & I
Meeting /2004/2365 dated 10-3-2004 respectively. Copies of,minutes are enclosed (Annexure-A).' Comments received from
Smt. Rama Murli vide letter dated 12.02.2004 are enclosed
(Annexure - B).
The committee may confirm the minutes of the 75th and 76th
meeting.
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GRAFT MINUTES QF THE 76th MEETING QF THE FINAN(;e AND INVEStMENT(F&I) COMMITTEE, CENTRAL BOARD OF TRUSTEES. EMPLOYEES'
PROVIDENT FUND HELD IN THE CONFERENCE ROOM, EPFO HEADOFFICE,NEW DELHI ON 03.03.2004.
The 76th meeting Ot the Anance and Investment committee, Central Board of
Trustees, Employees' Provident Fund was held on 3fd March, 2004 In the Conference
Room, EPFO Head Office, New Deihl. The meeting was chaired by Shrl Baleshwar
Rai, Additional Secretary (Labour), Govt. ofIndla.
The follow!ng were present:
(a) Members of the F&I Committee
Shltl J.P. Chowdhary, r-1ember. Shrl A. Venkatram, MemberSmt. Rame MuraU, JS & FA (labour), Membersnn 0.5. Poonla, Joint secretary (55), Ministry of Labour5hri Anirudh Rai, FA & CAO Convenor .
(b) Special Invitees
Shri Ajai Singh, CPFCShr; C.M.Pilla;, DGfv1, SBI Corporate Centre, MumlJai
(c) EPFO Officials
Shri K.C.Md. Kaslm, RPFC (F&A)Shri S.M. Sharma, Dy.Dlr.(Vlgllance} &. member Tender Processing CommitteeShri Jagmohan, RPFC and member Tender Processing CommitteeShri K.l.Taneja, RPFCand member Tender Processmo comrmttee
At the outset, the Chairman we.corred the members 2nd soecial tnvitees to
the meetlnq convened to shortlist the bidders for tender no F/\CAO-2( 1)2004
floated to seect an investment consultant to conduct study for icent~fyir.g new
avenues for nvestrrent of social securttv funds .1rd tc e,:,taj'1sh a mad map for
investment a:=ter studying national/lnter nationa! best ~:'JCtiC'~s.
Comparative statement on technical bids prepared by Tender Processing
Committee, Turns of Reference. t-1inutes of the meet-no in ~vhic!ltechnlcal ~)idsof
the consultants were opened and 'etter dated 03.03.2J04 of icier ba:1K r~gard~ng
wlthdrawal of their bid were p'aced on the tab'e for conslderatton of t'ie
Committee. The Committee noted the contents.
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Representatives of the following organlsatlons were allowed to make
presentatIons for 30 minutes each on the technical bids submitted by them:
1. Mis DelolUe Touche Tohmatsu India PrIvate Umlted
2. Mis A.F. Ferguson & Co.
3. MIs Watson Wyatt India Pvt Ltd .
4. Mis Hewitt Assodates(Indla) Pvt Ltd.
5. MIs Mercer Human Resource Consulting.
The presentations made by the above bidders broadly covered the folloWing
Issues related With this tender:
(a) Improvement within the extant pattern of Investment
(b) Suggestion of road map for Investment with radical changes In the
Investment pattern
(c) Governance structure and evaluation of Investment' management
The Committee analyzed the contents of the Technical Bids and the documents
submitted· in support of the Technical Bids. The Committee also evaluated the
presentations made by each of the Bidders with reference to:
i) the experience of the Bidder in COnsultancy work in the fields of Investment
Management,
experience and technical qualification of the personnels to be deployed for
completing the study,
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iii) knowledge of the work environment in India
Iv)
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accessibility to Nationa! and International best practices in key focus areas,
balance of Indian and international expertise in the team,
suggested approach for the study,vi)
vii) depth of analysis of the key subject areas etc.
The Committee did not find the vapproach of MIs p... F. Ferguson. as satisfactory
because of lack of depth in their analysis of the subject. The representatives of the Firm
could not explain the Finn's technical capability of handling the work of Irwestment
Management Consultancy. The Committee noted that Mis A.F. Ferguson & Co. was
basically an Accounting and Auditing Firm and it did not have any significant experience in
investment management consultancv. The representatives of MIs A.F. Ferguson were
requested to furnish the Balance Sheet of the Firm for three previous veers and the
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Auditor's certificate indicating the Income of the firm from Investment management
consultancy for the last 3 years. As per the technical bid, it was an essential requirement
to have ., turn over of RS.25 crores in aggregate from 2000-01 to 2002-03 from
consultancy in investment management. The representatives of 'MIs A.F. Ferguson
categorically submitted that the Balance Sheet of the Partnership firm was a confidential
document which cannot be filed. The Partnership firms are not required under law to
disclose their annual accounts. The representatives, therefore, requested that the firm MIs
A.F. Ferquson fT"ay be exempted from filing thei; Balance Sheet and Auditor's certificate
indicating income from the consultancy in investment rnanacemeot. The Committee
explained to them that the CBT, EPF was interested in appointing Investment Consultant
with sufficlent experience in the domain of investment management consultancy. TheCBT,
EPFwas not interested in appointing any Accounting and Auditing Firm for the purpose.
The Committee also analyzed the contents of the technical bid and the presentation
made by MIs Hewitt Associates (India) Pvt. ltd. The Committee noted the lack of depth of
analysis of the key subject areas and also did not appreciate the suggested approach for
conducting the study. The Committee also noted that MIs Hewitt Associates did not have
any corrunant client related to Socia! Security. T!'le presentation also was silent on the
names of the personnels to be deployed for the study. The representatives of MIs Hewitt
Associates did not elaborate the experience and technical qualification of their personnel in
the field Of investment management consuttencv. MIs Hewitt Associates had also not
furnished auditor's certificate establishing its income of RS.2S crore in aggregate from
2000-01 to 2002-03 from consultancy in investment management. The Committee noted
that the presentation of the bidder did not focus on the key areas of the proposed study nor
presented any or oper analvsis of the programme and the strateqv to conduct the study was
aiso no: c!ea:-!y <::x')lajrv::'d.
~.fter dete.ied c .scussions and detiberatons 0" the contents of the technica! bids and
1. MIs Deloitte Touche Tohmatsu India Private Limited
2. MI s Watson Wyatt India Pvt. Ltd.3. M/ s ME"rcer Human Resource Consulting
'N3'O. (''so decoded th':lt Balance S.,eet for the
last ::: veers a:-,d tc-'s certificate. il"ccme ta" '.:lec"ance certrlcates. ro'es of consortium
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of clearance of an dues under EPF& MPAct, 1952 may be obtained from, the short listed
bidders. It was further decided that the short listed bidders be advised to revise their
financial bids downward. The commercial bids of short listed bidders be opened within a
week's time thereafter. The comparative chart of the financial implications be prepared by
the Tender Processing Committee. The selection of the lowest bidder be placed before the
Finance& Investment Committee for considera,tionand approval by way of circulation.
TIle meeting ended with a vote of thanks to the chair.
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DRAFT MINUTES OF THE 75th MEETING OF THE FINANCE ANPINVESTMENT (F&I) COMMITTEE, CENTRAL BOARD OF TRUSTEES.
EMPLOYEES' PROVIDENT FUND HELD ON-06.02.2004 AT SBI CENTRAL- OFFICE, MUMBAI.
r The 75th meeting of the Finance and Investment Committee, Central Board ofr: (~rustees, Employees~ Provident Fund was held on 6th February, 2004 in Mumbai at, 11.30 a.m. The meeting was chaired by Shri 6aleshwar Rai, Additional Secretary
(Labour), Govt. of India.cc(
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The following were present:
(a) Members of the F&I CommitteeShri J.P. Chowdhary, MemberShri Ram Tarneja, Member-Shri A. Venkatram, MemberShri Sanjay Singh, Controller of Accounts on behalf of Smt. Rama Murali, ]S & FA(Labour), MemberShri Anirudh Rai, FA & CAO•• Convenor
(', (b) Special Invitees
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Shri D.S.Poonia, Joint Secretary (55), Ministry of LabourShri Ajai Singh, CPFC5hri Shashank Saxena, Joint Director, Ministry of FinanceOr Ajay Shah, Consultant, Ministry of FinanceShri A Vishwanathan, Addl CPFC(Pension), EPFO(HQ)Shri c.E.S Azariah, Chief General Manager (Treasury),MumbaiShri C.M.Pillai, DGM, S6r Corporate Centre, Mumbai
5Br Corporate Centre,
At the outset, the Chairman welcomed the members and special invitees to themeeting.
Item No. 1: Confirmation of the minutes of the 74th meeting held on02.12.2004.
The Committee confirmed the minutes of- its 74th meeting held on 02.12.2003.
Item No.2: Review of Investment Pattern
1 .The committee approved the proposed changes in the investment pattern with adirection to take the approval of CBT EPFfor making recommendation about changesin the investment pattern to the Govt. of India.
Item No.3: Review of Investment Guidelines
After discussion, the issues emerged as under':
• Scheduled banks regulated under the Banking Regulations Act include Co-operative Banks also and it is not advisable to make investments in bonds of Co-operative Banks.
• In case of bonds of Private sector Banks while:computing ceiling on investmentswith reference to net worth, Scheduled Foreign Banks' net worth in India onlyshould be reckoned.
The committee approved the proposed changes in the investment guidelinessubject to following amendment in proposed deciSion under parcO of item 3:
! Proposal as per Agenda Item Recommendation of Finance & InvestmentI CommitteeI E~isting policy of not exercising the Existing policy of not exercising the option foroption for making Investments in making Investments in corporate sectorcorporate sector debentures/bonds debentures/bonds may be continued.
. may be continued . However, However, investments in bonds/debentures! investments in bonds/debentures and and . term deposits of Qriv~tp sector bankste~m depOSits of private sectQ!" banks except cooperative banks may be made.may be made.Net worth of the bank should not be Net worth of the bank in India should not betesstnan 100 crores. less than 100 crores.
Item No.4: Screen based trading of Central Government Securities atNational Stock Exchange
Dr Ajay Shah, Consultant, Ministry of Finance made a detatled presentation onhe problems being faced by EPFOand its regulated entities and tne steps required toe taken by EPFO and other Provident Funds regarding trading in Governmentecurities/Bonds. It was decided to take this presentation as an~ additional item.fter deliberations committee decided as under:
Screen based trading of Central Government Securities at National StockExchange be allowed in principle.Detailed Agenda item showing pros and cons of the screen-based tradingin Central Government Securities as also trading of Central GovernmentSecurities through NOS of RBI be brought before the Central Board ofTrustees, Employees' Provident Fund along with the views of portfoliomanager, State Bank of India.
The meeting ended with the vote of thanks to the Chair.
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<-----"'!"Ii-flio. r:160 1J109104- Fin. IIGonmlJlcn, or ludialBharilt Sarkar
Ministry of LabourlShram MalltraJaya .....,.--"
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Feb. 19 2004 04:17PM PI
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New Dclhi. daled ~ ••• February. 2004\ 1.'
To
Shri Ajai SinghCentral Pro\<ident Fund Commissioner.Sba\oishya Nidhi Bhawan.14·BhibJi Cama Place.?\ew Delhi. I I0066.
Subject: Holding of 48111 Meeting ofExecuti'lc Committee. CRr (EPF) & 7Slb
Meeting of the Finance &. Invemnent Committee at ~~mbai on 6* February,2004
Sir.
Tnmy absence in the aforesaid Meerings. Shri Sanjai Singh. Controller ofAccounts. MiniStry of Labour represented me. My observations in respect of themeetings are as under'-
A. 48'" Meeting of .Executive Committes. CBT (£Pf):------ i) Circulation of Agenda papers jun before the meeting - The agenda papers
were cirCUlat«i at the last moment. Though there was a reference In the CSTmeeting held on 3n1 February 2004 to ho!d the meeling ofEC (EPF) alongwuh[he meeting of Finance and In''estment Commiuee, EPf, which was scheduledfor 6rh February 2004 in Mumbai, the letter No.Conf3(I)4S1i1 ECI2004/2048Sdated 4'" Feb.. 2004 from EPFO mentioned only one agenda item i.e,'financiaI sanction for set up of necess:uy infrastructure at 11 additionalCentres fOT the issue of NSSN'. In the agenda papers not only the scope of thisagenda item was enlarged but four more agenda items were included, Tn theabsence of non-avaiIability of details of the item's in advance if was difficult toweigh pros and cons of the proposals discussed in the meeting. EPFO istherefore ad"isedfor timely circulation of Agenda papers in future to enableMembers to give fruitful contributionitem No.1 - Paralld implementation of the "Reinventing EPF (ndip:'Projett ill additional centers in tandem with the Pilot CenterimplementatioD - Approval of Standard Implementation Cost & Item'So.l Site preparation (or root Offices-lIpproval of supplementaryettimates- these items were brought to F.c whereas J.nternal Finance ofEPFhad DOtcleared it: (may emphasize that the approval and sanction in respectof each Center be issued only after getting the proposal for each Center dulyapproved by Tnternal finance ofEPFO. It may also be desirable to undertake a'comprehcnsi\-'y-review of tbe project after some time to assess the physical
fl achiev in issuing NSSNs viH-\ols cost incurred. before committiJ:Ig \-~rr([Y'! apendioJaundincludingmor.c CentreS. It is also not clear from the t-/
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aeenda notes whether the n: Sub-Com,uillee of EPFO has been consulted forp~cl implementation in additional CenLres J presume thaI trailiingrequirements of officials arc being iull~imet to equip [hem to handle theprGjet.'t.Item No.3 - Proposal (or administrative sanction (or upgradation or~A TRSS hO$UI. The Committee approved Ihi$ Item in principle. -It shouldalso result in increase in earnings. ltissuggested thatbcforc the'proposal foro.-pendilure .~n under: eacll-ittm-iS·coOsiaercd. it should have the'~'OfCo~nSub-Contminee and Inrema) Finance ofEPFO.·Item No.s- Opening of sao llt Siddiper IOwa of Madak DistL in AndhraPradesb.- Although opening of SAO Siddipel was approved in the meeting.itseems due to last .minut~ circulation of the agenda papers. the faCt that EPFOitself bas not reconlllWlded the proposal in the last para of agenda notes hasbeen overlooked. Therefore; it would be advisable to carry out fea.~bilitystud) before arriving at final decision. The existingnonns for opening up ofsuch an office need to be; taken into account though these existing norms needupward revision when BPR is implemented. It is also subject to furthercondition tbat there will not be any fresh creation of posts. it would only be re-deployme1lf of the existing .sl~ff.
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B. 7~ Meetingof FinaDte & Investment Committee:
I. Although. the minutes of the 74th meeting were approved. the viewsexpressed on pagc2 (Item NO.3 Action Taken Report) of my letterNo.U.J60J312I12003-Fin.n dated g:t: 1)ecem~2003 (copy enclosed)are reiterated,
ii. Item No.1 : Review of Investment Pattern "Item No.3 Review oflnvesnnent guidelines:While recommending the roadmap for investment. it should be ensuredthat no compromise is made on saf~ of the investment money.Anot:her aspect needs to be kept in view is that EPFO is in process ofappointing a Consultant to identiiY new avenues for investment.Presentation OD improving the safely of tradmg ODGovt. Bonds-harnessing Dew institUtion$. solving Old problems & Presenbttionby NSDL:A comprehensive proposal for subscribing to National SecuritiesDepositories Limited (NSDL) services alongwith COst impliCations.comments of S.B.I.. which is presently fund manager of EPfO andC!)mmcntS of EPFO. need to be placed before Committee for a finaldecision.
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I Yours fairhfullv,1/ .f.
ill'''- (Rama M(Jrali)
Financial Advisenf ahour)
Copy to: Chairman Executive Committee for his kind information.r \I/' ., 11 -
IV 11/ \L./(Rarna Murali)
Financial Adviserfl .ahour]
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FAX WJ.371973019 2004 04:18P11~-=-Feb.
q No.U-160131211l00J..Fia.U, .....':~">' j~!~,,:,.~:-\,
:~:;~:~=~:~:~}f[ ...;~\.~[tNew l>elhi, dated Sell D~cl..f'looi~',~.~1;f,f;:~'~: ':~;~!f.·:,}<::f '.
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~~:~"i"''''Pr()I.'id~ntfWlci Commissioner'BlllS.\Ilis.'t'lfa Nidhi Bhawan:!•••"JUJII.ClU Cama Place
Delhi- I10066...... --
:m!)jec:t:'f+rl M~~ting oftbe Executive Comminee (tPf) &. 74TJt Meeting of~:F~Iavestmem Commirree. both held on 2114 December 2003.. . /., ..' "
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The aforesaid meetin.gs. on.m~ behal!:W~~\! an~ by. Shri,S~~,,~gh, ,~;:.:,:,;li~~~~SjtC~i:i",~·,ll••" of Accounts. MiniStrYct laoour. 1 am znfonncd ~t some ~~1~~2~bave ·:~).'i:,;fF:.··J:
.taken in the meeting. I would like to express my reservation on :th(~-v..pwing· ';~::~";"."-::':'~;;~ - !";
land for construclion of office building for SAO
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of land of 1S90 Sq.yds. 3t Ladowali Road. Jalandhar is proposed to he purchasedPunjab Urban Development :\uthorifY (PCI).I\ I ~ Rs.QOOOper Sq.yd .• with thecost of Rs, J .4-3.lU.Ol)()f_. This i:~lliwas submiued to the Executive Cemminee, as
tne.:ne:~1·meeting of Sub-Comminee fur Building and Constructions was not scheduled infuture. The Executive Commiaec approved ,10 3.mount of Rs, 1.4}. 100. being 1%total cost to be released to PUDA as the amount was supposed to be given'to them31'" December. ~oo;to avail the present rate which is. du: fer revision~from.l It ,
200~. Thee Committee desired (hat the proposal should come thro~ Sub-for Building and Construction. I may mentiontha; if the arno~-9f Rs.
100/· is released to PUCA. we would be making 3 commitment to purchasC·.ihe land!(t)ti:fore assessing. tbe need for it. The agenda item did not give the cost benefipanatysis
it provide adequate justificauon for purchase of the plot of land, which' ~ to•.•.~.,..- •.;. costly Therefore. it is n":'l!ssary that before giving <my commitment by
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~~IW~lg one percent 01"th~ cost the plot uf land to ('UDA, cost beneflt ana}ys~ should be :". . .•~t;al()DJ! with reasonability of rates. . ' .. - ", • .;~~;.', :., ,
Investm •• ' C••••• ittee ~li ·~·i,,~.~"~C. T k R ~< ,. ~ .mli1;£:;; ;~~ ., 1;:-:"
ACtlOa a 'en cJ)4rt. :,::', ;:: .i-( :jlsUf:' ,'~-::-:.~:.• :. &.". I> . ;~"T ~:' . r :~ii~- :;":':.::t;::::!'.:
S~al No.9 of the item. for selection of consulwit-"U).··i<Jentify new a,~~es ior;':-; ;~.:~:',- , of EPFO corpus and investment guidelines, the committee decide4;:tQ~rorm a
tiQi:>mmilctetto shortlist the: prospective coasultanu who would apply in re~~ii,Seto theto' be issued by ~PFO. The name of Shri Sanjai Singh. ConttOlkr of:A~unts.was also propos~d as one 01 the members fN such sub-comminee.Jn my view no
~plrestnl:ati\,"~ of the Finance Division of the Ministrv of Labour need to be included inTherefore. ! request that the ~ame of Shri Sanjai Sin~may be
exC:JUCleClfrom the sub-comminec "; .~ , .
:, 1 ~equ¢st that th~ Chairman of th¢ Committees may kindly be apprise4 of myStaledabove.' "'~r ,
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Item No.2:
I . r ~W~/ )\\Mt-e~tl .r: ,'t~l0'1'''-.---- -
Statement showing the action taken on therecommendations of the Committee.
Action TakenRecommendationsSI.No1. Outstanding interest and
maturity proceeds.. The State ·Bankof India have been advised to. ensure prompt collection of receivables,· ifrequired by taking appropriate legal actionvide letter no. Inv.I/Action Taken/F&I/02dated 12-9- 2003.
: Details of the outstanding interest andmaturity proceeds up to 31-1-2004 areplaced as Annexure 'c'List of cases from November 2003 toFebruary 2004 in which interest and maturityproceeds were received belatedly is enclosed
! as Annexure D. SBr has been advised to, take up the matter with issuers for claimingover due interest and to furnish up to datedetails of outstanding interest and maturityproceeds. Interest may also be receivedbelatedly on account of postal delay inreceipt of cheque, clearing time, particularlyfor outstation cheque, acceptance ofsecurities belated transfer in the name ofCBT/EPF.
2. Extract of Concurrent AuditReports furnished by StateBankof India
The 5BI has furnished the relevant extractsof concurrent audit report for the period fromAugust 2003 to October 2003 (AnnexureE). The incentive amount has reportedlybeen recovered by SBI from the issuer ofbonds. 5BI has been advised to furnish theConcurrent Audit Reports from November,2003 onwards.
Idle funds The requisite details of idle funds for theperiod from 16-11-2003 to 15-3-2004 areplaced as Annexure 'F'&'G.'
3In accordance with theminutes of the meetingwith the representatives ofthe Central Board ofTrustees, EPF and SB! inMumbai on 30.5.2001 asigned fortnightly report inrespect of Idle Funds willbe furnished in the agreed !
Iformat by the 5BI and the i
same would be placed!before the Finance & I
I Investment Committee. !l i! Declaration of rate Of! Matter has been taken upI Interest to be credited-to- ,India, Ministry Of labour,
with Govt. OfNew Delhi to
Crbackun C\FINIl\TVMET.71th F&I dt 5.4.2004\Uem 77th 5-4-211I1.l.doc
Actuarial Valuation of staff In compliance of the decision taken by thepension cum gratuity fund Finance Investment Committee in its 73rd
Committee was informed meeting the appointment letter was given tothat only three Actuaries Shri Bhudev Chatterjee,Actuary vide thisgave the bids. Shri I office letter
I Bhudev Chatterjee gave i No.Invest.11' 1(76)/2003/SPF&GFjA/C 09/I the lowest quote! 16033 dated 19.11.2003.Sample DataI amounting Rs.25,000/- : received from 16 field offices has been sendi only for Actuarial valuation i to Actuary and the balance data is nowI, of Staff Pension cum! being collected from rest of the field officesI Gratuity Fund. The matter II be processed further as I
EPFmember's accounts forthe year 2003-2004 CSTdecided in its· 163rdmeeting held on 19-8-2003 as under:-
dedare the rate of interest. Response is stillawaited •. However to execute the decision ofCBT,EPF regarding settlement of claimspending dedaration of interest under Para 60{I} instructions was been issued vide letterNo. Invest.II/3 (2) 2003-04/ Interest dated25-8-2003 to all concerned.Reminders have been sent to Ministry ofLabour on dated 20.11.2003 and 24-03-2004.
"The Chairman announced-the decision of the centralBoard Of Trustees torecommend interest @ 9%for the year 2003-04 andan additional interest of0.5% on the occasion ofGolden Jubilee of the EPFOto all members of the EPFunder Para 60 (1) of the'EPF Scheme,1952 . TheBoard alsojdeclded that aninterim rate of interest @9% and 0.5% bonusinterest be paid to alloutgoing members."
6.
Declaration of rate ofInterest after the close offinancial year on actualinterest income
Following probiems are envisaged if rate ofinterest is declared after the close of financialyear on actual interest and other incomes.(a) Actual income and actual liability in the
Balance Sheet can be finalized onlyafter audit of the same by the C&AG.It may take more than six months tofinalize it and settlement of claims tothe retiring members cannot bewithheld just because of non-declaration of rate of interest.
(b) Annual accounts slips cannot be issuedto the members till rate of interest isdedared before the commencement ofFinancial Year.
5.
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7. The committee conslderedand deliberated upon therequests made by theIFGI. After carefulconsideration, thecommittee stressed thatthe dedsion of CentralBoard of Trustees,Employees' Provident Fundtaken in its 162nd meetingheld on 21.06.2003 be-accepted by IECLalongwithother terms and conditionsfor restructuring of debtsagreed by IFCI.
-""[FC! be advised to meet --.their obligations up to31.03.2003 at thecontracted rate of interestas provided in therespective securities.Overdue interest up to31.03.2003 will becalculated at contractedrate and thereafter at therate reset hereinafter. [Fashould clear its interestdues up to 31.03.2003payable to CBT,EPFbeforeformal communicationabout acceptance of rollover proposal".
Committee 'constituted by the Chairmannegotiated with the top management of IFCIon 23.02.2004. Approval of minutes of thesub-commlttee meeting is awaited (Copyendosed as Anriexure -H). Finance andInvestment Committee may consider as towhether action may be taken in accordancewith the decisions of the Committee pendingformal approval of minutes by the Chairman.
Regarding the request ofIFCI for reduction of resetrate from 10% to 9% perannum or the rate ofinterest declared underpara 60( 1) of ePF Scheme,whichever is higher, thecommittee decided thatthe matter be placed II directly before the Central tf Board of Trustees, !I '
I Employees' Provident Fund i
Iin its next meeting. The iCBT,EPF may decide the!I issue keeping in view the i
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C:\oockun cIHl\.lNVMFT 77th F&I dt 5A,20041/1em 77th 5-k~(·.l-l,doc
request of IFCI and theprevailing interest rates inthe market.
. 8. regarding fund Details are being collected to completerequisite system study. Status note isendosed as Annexure -I..
Studyflows.
9. Special audit report forthe period 1.10.2000 to31.3.2001 and for theyear 2001-2002 oninvestment portfolio ofEmployees' ProvidentFund Organisationmanaged by the StateBank of India.
S6I ..•• ply has been received vide letterNo."r/PMS/1947 dated 30-12-2003 (Copyendosed as Annexure 'J')
\\ Aforesaid Audit Reportswere circulated earlier.The item was deferredwith an advice to get thecomments of 5BI on theremarks of EPFO givenagainst the remarks ofAuditors and SB! in thegist of Audit Report. SBIshould be asked to reportabout the reasons forkeeping the idle funds".
Comments received from SBI vide letterdated 13.02.2004 are enclosed asAnnexure- K. Matter has been taken upagain with SBI to furnish detailed report onthe pros and cons regarding adoption of 'proposed screen based trading system videletter dated 18..03.2004. Further requisiteinformation has been called from NSE alsovide letter-dated 19,03.2004 (Copy enclosed-Annexure K-l). Response is awaited fromNSEand SBIboth.
10. RegardingScreen basedtrading of GovernmentSecurities/ Bonds atNational StockExchangecommittee decided asunder:
a. Screen based tredtna ofGovernmentSecurities/Bonds atNational Stock Exchange
I be allowed in principle. !Ib. Detailed Agenda item!I showing pros and co,!s !
be brought before me iCentral Board of!Trustees, Employees! iProvident Fund along II
with views of portfolio
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11. Review ' of Investment Central Board of Trustees, Employees'Pattern and guidelines. Provident Fund in its meeting held on
23.02.2004 approved the changes in theInvestment Pattern and guidelines asrecommended by Finance and InvestmentCommittee. It may be considered as towhether action should be taken on thedecisions taken by Central Board of Trustees,Employees' Provident Fund pending formalapproval of the minutes.
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To!al Red""pU.)n Amount:
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S.eurityeocs. OueD.fa
Page 1 of 2()1j~EB4411 :06:1<4
s.eunty OncripUon CouponAmount Ramarkl
A.ccount Code: EPFOA.C11 EMPLOYEES PROVIDENT FUND ~C. 11 (01000010028)
501011 ,2.0<'4 CO RlCIWU) ~ CRUDDD.. _\ 3110312002 /
~101.1 12.•••• CG RICHARD. CRUDDD.. 2004 30101112002
$01011 12.50% CG RJCHARO & CRUDODAS ~ 3110312003,501,,011 12.50% CG RlCHARD & CRUDDDAS 2QG.4 3QIOQ12oo3
, 0300~ 12.50Y,IFCI:2()().4 XVII 30/1112003
300010 1~7S.~, IF..c12~ XVI!. 3011112003..•....3()()0<47 13.50% IFCI2oo5 XX .:'.' 2••••0112004
501004 1:l.75'4'lIP &F.C2007 29/0112004
" . :s: Sum of Coupon Amount:
Account Code: EPFOAC25 EMPLOYEES PROVIDENT FUNDAlC, 25 (01000010024)
3001)09 , " 12.50% IFCI2004 XVII, 3011112003
,':.', 'r') Sum of Coupon Amoum:"
~~Qunt Code: EPFOAC8' ',EMPLOYEES PROVIDENT FUND AlC. 8, (010000100;'7)
. 300009,-- 12.50% IFCI 2004:XV1I 30/111200!
Ac<:c 'mt Code: EPFOMAIN" Sum of Coupon Amount :
EPFO MAINAlC. 5 (01000010029)
~- 16(12.50%.C(; ~ICHAAD & CRUDDDAS 200401'OU 3010912002
1'5,C1102<4 13.75%UP PICUP2008 SR III 1510312003
\ \6b !iQ1~11 12.50% .CG.RICHARD & C~~JD.D~~ 20~ 311O~003
1151P033 11.50'.4 U~SEB 2010 II 2610612003l,~501024 r,,· 13.75%UP PICUP 2008 SR III 15109/2003. ;, ... ~ ..-.
25,27,778.00
25,41,661.00
25,27,778.00
25,,(1,661.00
6,33,68.056.00·
6,48,35,417.00
8,75,00,000.00 ..
35,13,889 •.00
20,91,56,252.00
5O,69,0U4.00·
21,42,25,696.00~'
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6,33,681:00~:"
21,<48,59,377.00 .
12,70,833.00 ' -----_ ..
2,93,195.00
12,63,889.00
1,977.00
2,98,055.00 _., ..-
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,.\ 821086
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r:: 370028
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11.50"1. UP SEe 2010 II
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'<, 13.75% IFC/200a xx13.75% UP SFC 2007
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31/0112004
31/0112004
31/0112004
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~UITt of Coupon Amount·
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Page 2 of 209-l'EB44 '1:06:14
CouponAlnount RatnarXl
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12,70,833.00
49,833.00
25,800.00
16,38,356.00
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1,26,73,611.00 lLo',"", •••J ""',> ~<../l ('..01 4 \I, I •.') ~d"" .sl,:z.,{v?1,29,21',083.00
+\ -1,988.00 ,. •/
3,16,333.00 --a> f.~ 1'2.-1'1.1 o.~, ~ ~ "1,11,528:00 F.e""'; •..J•.....)cvL,,_ ~(\~.J), )1,'2-1 o'~
35,13,889.00 _' .- 1\ .-36,975.004 c~ e \j s« IIJ 0." . j \'l--l0~
378.00 ~ £,.c.,J' C 1\. q lL-to '-IJ5,13,889.00~· R-J. O't). , \2-\ at,
____ ",_59_,00_0._00-4 1<-<'-">. n'l\. ~ I~ 0 ~ ,€:J 11' '1,r";'25,45,2,6,822.00
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SEe.CODE Ale PARTICULARS FACE VALUE INT;~~ST DUE DATE ~~~~T DIFFERENCE
~300013 MAIN 14.~O%.lFCI2005 xxv 50000000 7100000 ·30..11.03 4500000 2600900'300013' PENSION 14.~0% IFel ~oos xxv 250000000 35500000 30.11.03 22500000 130000003Q001;3 25 14.~Q%I~CI 20p5 ,. 25000000 3550000 30.11.03 2250000 130000.0300015 MAIN 14.2QroIITC,I~005XXV 1QOOQOQOO.14250000 31.12~03 9000000 5250000300~15' P~NSION 14~~~%~CI ~005 xxv 1000.0000.0 1425.0000 31.12.03 9000000 525.0.000300016 r ,MAIN 14.~:5% FCI200S ": 5000000.0.0 7225.0000 31..07.03 45.0.00000 27250.o().o'300'916 PENSION 14.45% IftCI2OD5.'. 50.000000.0 7225000.0 31.07.03 45000000 2725.0.00.0
,30..0048 PENSION 14.10% IF=C12005 .J 15000.0000 21150000 31.10.03' 135000.0.0 "'765.0.0.0.0~;. \\. r :I TOT A r ,r :..1675 ..0.00.0.00 24.03.0.0.0.0.0 1507500.00 8'9550000i
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:1 :::~ l-:~~~~:j::~;"1-!t~t;:;l ~-l~~O:~j :o~::>~ol:~~;~'~~ __+!:~~~;~~-r::::ReCe~-O-4 I STG'-I--s2iii3-' ,i iiso-I ~~~~KVDc--131--,i-04- t 9-i~b·f-- j2;oo,o60---+j,i6~o6o'~-9--'- -- -~~~:~~-------
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~-400021.Treasury Department, Corporate Centre.PostBox No. 12.Mumbal-400 021.~/Fax: 22045468 J 22028779/22868220
/' iffi/Telegram: APEX
t.//r-The Regional Provident Fund -Commissioner(lnvestment)I The Employees Provident Fund Organisation,. ~
Bhavishya Nidhi Shavan, {\ . ).; •.~ I
14, Bhikaji Cama Place,'1Y'" ~New Delhi 110 066
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State Bank of India
~. ~/No. fi::m61 D~-11-2003Tr/PMSI i 6~~
Dear Sir,
CONCURRENT AUDIT REPORTS
We are enclosing the concurrent audit reports for the months of August,September and October 2003.duly rectified in all respects for your perusal.
o uty General Manager(P S & CS)
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ANNEXt.1REC
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(b)PMS Deal Confirmation copy to be authenticated by Chief Manager (Mid-Office) in respectof the following Deal Tickets: I Since signed2003001122 dated 19-09-20032003001227 dated 26-09-20032003001232 dated 26-09-20032003001234 dated 26-09-20032003001237 dated 26-09-2003
VERlFICATION OF DEAL TICKETS FROM 2003001031 TO 2003001240
OBSERVATIONS
1. DEAL TJ9KETS:(a) Front Office Authorised Signatory(Dealer) to also sign on the following Deal Tickets
at the bottom left comer:2003001106 dated 12-09-2003
(b) There are no Deal Tickets numbered 2003001100 to 2003001102,2003001142 to2003001226,2003001228 to 20cJ3001233,200300123S,2003001236,2003001238
2.DEAL CONFIRMATIONS OF PMS:(a) Name of counterparty not mentioned above address in copy ofPMS DealConfinnation
in case of the f91.19wingDealTickets:2003'001086 dated 09-09-2003
(c) PMS Deal Confirmation copies are dated 22-09-2003 in respect of Deal Ticket numbers2003001103,2003001104,2003001105,2003001106,2003001007 all dated 12-09-2003 and20030011 08,200300 1109,2003001110,2003001111 ,2003001112 all dated 16-09-2003Delay in generation of. PMS Deal Confirmations should be avoided.Efforts should be made to generate and send PMS Deal Confirmations to othercounterparties by the end of the day of the transaction
C-SEP 03(114)
3.COUNTEMARTY DEAL CONFIRMATIONS:D,eal Confirmatiohs ~!£.!..he following counte!parties have still to be receiveQ and filed at
(
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PMSREPLY
Since signed
All thesedeal tickets issued in respect of'acceptances of securities in respect of nonPMS clients
Since rectified
Noted for compliance
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. ,!!e appropriate places.NAME OF COUNTE-RPJ-iliTYSecurities Trading Corporation Of India Ltd.Securities Trading Corporation Of India Ltd.IDBI Capital Market Services Ltd.IDBI Capital Market Services Ltd.1])Bl Capital Market Services Ltd.SBI Gilts Ltd.SBI Gilts Ltd.Securities Trading Corporation OfIndia Ltd.Vysya Bank Ltd.Vysya Bank Ltd.UTI Bank Ltd.Securities Trading Corporation Of India Ltd.Securities Trading Corporation Of India Ltd.UCOBankUCOBankState Bank Of SaurashtraState Bank OfTravancoreState Bank Of TravancoreSBI Gilts Ltd.State Bank OfPatialaDenaBankState Bank OfTravancoreState Bank of TravancoreBank OfMaharashtraBank OfMaharashtraBank OfMaharashtraBank Of'MaharashtraAllahabad BankAllahabad BankAllahabad BankAllahabad BankAllahabad BankAllahabad Bank
. NAME OF COtJNTERP ARTY
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DEAL TICKET NUMBER20030010342003001035200300104520030010462003001047200300106820030010692003001076200300107720030010782003001081200300108220030010832003001084200300108520030010862003001087200300~0882003001090200300109120030010922Po30010932003001103200300110420030011052003001106·2003001107200300110820030011092003001110200300111120030011122003001113
DATE01-09-200301-09-200302-09-200302-09-200302-09-200304-09-200304-09-200304-09-200304-09-200304-09-200305-09-200305-09-200305-09-200308-09-200308-09-200309.-09..200309-09-200309-09-200309-09-200311-09-200311-09-200311-09-200312-09-200312-09-200312-09-200312-09-200312-09-200316-09-200316~09-200316-09-200316-09-200316-09-200317-09-2003
C-SEP 03 (2/4)
DEAL TICKET NUMBER DATE
r) ~ '1 ~ .~ o () 'J J 1"')) -9 (')J :l"" oJ-1;
ReceivedReceivedReceivedReceivedReceivedReceivedReceivedRemindedReceivedReceivedReceivedRemindedRemindedReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceived
.1
ReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceivedReceived
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- Allahacvl.BankUCO'Ban~State Bank Of SaurashtraAllahabad BankUCOBankUCOBankUCOBankUCOBankUCOBankUCOBankState Bank Of Bikaner & JaipurState Bank OfBikaner & JaipurState Bank OfBikaner & JaipurState Bank Of Bikaner & JaipurState Bank Of Bikaner &. JaipurAllahabad BankAllahabad BankAllahabad BankState Bank of Bikaner & JaipurState Bank Of Bikaner & JaipurAllahabad BankAllahabad Bank.Allahabad BankUCOBankUCOBankUCOBankAllahabad Bank
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c .. i.)\)Ol I i~~ 1/ :-20(; :VC{i.2.\jiJ3001l1~ 18-09-2003 keceived2003001120 19-09-2003 Received2003001121 19-09-2003 Received2003001122 19-09-2003 Received2003001123 19-09-2003 Received2003001124 19-09-2003 " Received2003001125 20-09-2003 Received2003001126 20-09-2003 Received2003001127 20-09-2003 Received2003001128 22-09-2003 Received2003001129 23-09~2003 Received2003001130 23-09-2003 Received"2003001131 23-09-2003 Received2003001132 23~09.;2003 Received2003001134 24-09-2003 Received2003001135 24-09-2003 Received2003001136 24-09-2003 Received2003001137 25-09-2003 Received2003001138 25-09-2003 Received2003001139 25-09-2003 Received2003001140 25-09-2003 Received ~q;2003001141 25,,-09-2003 Received2003001227 26,;09-2003 Received2003001232 26-09-2003 Received2003001234 26-09-2003 Received2003001237 26-09-2003 Received
Necessary follow-up needs to be done with the above mentioned counterparties so that alldeal confirmations are received expeditiously.
,
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l C-SEP 03(3/4)The transactions are being distributed so -
4.DISTlUBUTION OF?''''''''~NSACTIONS AMONGST BROKERS: " ,,t-,, I as to comply with the RBI guidelines.~!
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business should not be transacted through only a few brokers and aggregate contract limitsshould be fixed for each of the approved brokers.A limit of 5% of total transactionsentered into by a Bank during a year should be treated as the aggregate upper contractlimit for each of the approved brokers.Hence,care must be taken to ensure that transactionsare equitably distributed amongst the empanelled brokers throughout the yearand the stipulated limit of5% of total transactions during the year is not exceeded inrespect cf any broker.Otherwise.it would be necessary to report the exceeding of the limit inrespect of each individual broker to the Central Board post-facto along with the reasonstherefor.
s.sUBMISSIONOF REPOiTS/MEMORANDA:Yearly review for 2002-20()3 had been submitted to ECCB on August 22,2003.
C-SEP 03(4/4)
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........ "'(',,~.NNEX( '«F c..~=-----.---.-_-----.-. I'ORTj:~()UQ-~1A-i'iAGf;~1EN'r-=-AUGUS-;r-2003--__-~------------ ..-.---.-..- ---------------.-- ._. _
I VERIFICATION OF DEAL TICKETS FROM 2003000973 TO 2003001030I
Ir-' OBSERV ATIONS
IiIi
1. DEAL TICKETS:(a) Front Office Authorised Signatory(Dealer) to also sign on the following Deal Tickets
at the bottom left comer:20030001010 dated 20-08-200320030001012 dated 20-08-2003
(b) Alterations/changes in particulars on the following Deal Tickets to be authenticated by theFront Office Authorised Signatory(Dealer) also:2003000981 dated 04-08-2003
(c) Alterations/changes in particulars on the following Deal Tickets to be authenticated by theMid-Office Authorised Signatory also:20030001025 dated 28-08-2003
-' DEAL CONFIRMATIONS OF PMS:Name ofcounterparty not mentioned above address in copy ofPMS Deal Confirmationin case of the following Deal Tickets:
2003.000976 dated 02-08-20032003000977 dated 02-08-20032003000991 dated 02-08-20032003000999 dated 13-08-20032003001000 dated 13-08-2003200300100 1 dated 13-08-20032003001005 dated 18-08-20032003001006 dated 18-08-29032003001015 dated 21-08-20032003001026 dated 29-08-20032003001029 dated 30-08-20032003001030 dated 30-08-2003
C-AUG 03(1/3)"'"'
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SINCE RECTIFIED
SINCE RECTIFIED
SINCE RECTIFIED
SINCE ReCTIFIED
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3.COUiYJ 1 \~ .: ,~.:ZJ1,;,:".ili.. ·.-~.LW..!:_~.,l••:J "~\l'Deal Conti II l ] ;l! ions from the Il)L.. " .. 'i; countcrpui uc.. 11,(V.,; sull to be received anti filed at
.I I the appropriate places:DEAL TICKET NUMBERNAi'\.1EOF COUNTERPAnTY DATE
Bank Of India 2003000990 07-08-2003SB! Gilts Limited 2003000991 08-08-2003 RemindedCorp Bank Securities Ltd. 2003000992 08-08-2003 Reminded'Canara Bank 2003000994 11-08-2003 ReceivedCanara Bank 2003000995 11-08-2003 RemindedCanara Bank 2003000996 11-08-2003 RemindedCanara Bank 2003000997 11-08-2003 RemindedSBI Gilts Ltd. . 2003000998 13-08-2003 RemindedSBI Gilts Ltd. 2003000999 13-08-2003 ReceivedSBI Gilts Ltd. 2003001000 13-08-2003 ReceivedSBI Gilts Ltd. 2003001001 13-08-2003 ReceivedSBI Gilts Ltd. 2003001005 18-08-2003 ReceivedSBI Gilts Ltd. 2003001006 18-08-2003 ReceivedDevelopment Credit Bank 2003001016 22-08-2003 ReceivedDevelopment Credit Bank 2003001017 22-08-2003 ReceivedDevelopment Credit Bank 2003001018 22-08-2003 ReceivedDevelopment Credit Bank 2003001019 22-08-2003 Received \s\Development Credit Bank 2003001020 22-08-2003 ReceivedBirla Sunlife Trustee Company Ltd. 2003001021 22-08-2003 ReceivedState Bank Of Saurashtra . 2003001025 28-08-2003 ReceivedState Bank Of Travancore 2003001027 29-08-2003 ReceivedState Bank OfTravancore 2003001028 29-08-2003 ReceivedState Bank Of Indore 2003001029 30-08-2003 ReceivedState Bank Of Indore 2003001030 30-08-2003 Received
Received
Necessary follow-up needs to be done with the above mentioned counterparties so that alldeal confirmations are received expeditiously.
C-AUG 03(2/3)
4.DISTRIBUTION OF TRANSACTIONS AMONGST :BROKERS:
•...-isiness should not LJL :,;. .ctec i.1;)·Oll!'!' ,,;! I>W h:"llk,":"';' ., .s;;.:~c'J;." '
~,h<'JI;ldbe fixed for each o lthc approved brokers.A limit of 5% of total transactionsentered into by a Bank during a year should be treated as the aggregate upper contracturnit for each of the approved brokers.Hence.care must be taken to ensure that transactionsare equitably distributed amongst the empanel1ed brokers throughout the year.The statement of broker wise exposure as on 31-08-2003 in respect of transactionsundertaken on behalf of the Central Board Of Trustees Employees Provident Fund indicatesthat he 5% limit had been exceeded in the following cases:
Name Of Broker Percentage Share
Mata Securities India Private LimitedTower Capital & Securities Private LimitedSBI Capital Markets LimitedIndistock Securities Limited
6.8446.60'65.7235.257
Further transactions during the remaining part of the year must be done taking special carethat the bulk of the transactions are routed through brokers other than those mentionedabove and the stipulated limit of 5% of total transactions during the year is not exceeded inrespect of any broker.Otherwise.it would be necessary to report the exceeding of the limit inrespect of each individual broker to the Central Board post-facto along with the reasonstherefor.
5.CONTRACT NOTES OF BROKERS: 'Erazex White Fluid has been used on the following Contract Notes of Alka Securities Ltd.Contract Note No. 6670/03-04 dated 20-08-2003 (DT 2003001009) '.Contract Note No. 6672/03-04 dated 20-08-2003 CDT 2003001010)Use of Erazex White Fluid must be totally avoided.In case changes are inevitable,the earlierincorrect matter mustbe struck off under authentication of the authorised signatories.Thebroker must be advised accordingly.
6 .SUBMISSION OF BEPORTS/MEMORANDA:Yearly review for 2002-2003 had been submitted to ECqB on August 22,2003.
C-AUG 03(3/3)
II
Transactions are being distributed tocomply with the RBI guidelines andthose who have crossed 5% have beenkept under cooling period. However,the present position as on 17-11-2003 isas under:
Mata Securities India Pvt. Ltd.,
- 5.94%Tower Capital & Securities Pvt. Ltd.,
- 6.45%
Broker has been advised not to resortto such practices.
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ANNEXURECPORTFOLIO MANAGEMENT - OCTOBER 2003
VERIFICATION OF DEAL TICKETS FROM 2003001895 TO 2003001987
OBSERVATIONSPMSREPLY
1. DEAL TIQ\ETS:(a) Front Office Authorised Signatory(Dealer) to also sign On the following Deal Tickets Since signed
at the bottom left corner:2003001951 dated 22-10-2003
(b)Mid-Office authorised signatory to also sign on the following Deal Tickets at the bottom: Since signed2003001950 dated 21-10-20032003001983 dated 29-10-2003 .-."
(c)There are no Deal Tickets numbered 2003001942 and 2003001943 The deal tickets were cancelled.
2.DEAL CONFIRMATIQNS OF PMS: I
(a) Name of counterparty not mentioned above address in copy of PMS Deal Confirmation SInce rectifiedin case of the following Deal Tickets:2003001967 dated 22-10-20032003001968 dated 23-10-20032003001976 dated 28-10-20032003001977 dated 28-10-20032003001978 dated 28-10-20032003001979 dated 28-10-20032003001980 dated 28-10-20032003001981 dated 28-10-20032003001982 dated 28-10-2003
I 2003001985 dated 30-10-2003i
I
(b)PMS Deal Confirmation copy to be authenticated by Chief Manager (Mid-Office) in respect,
of the following Deal Tickets: Since rectified2003001949 dated 21-10-20032003001950 dated 21-10-2003
C-OCT 03(1/3)
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"3.e' .,.:JNTERb'·...!l..:.. '. .;~_.;::'!'j2..: ..(a) Dcal-Confirrnations InJill die following Ct)i..iu,<;;l fhlilies have sUB lV lJC 1(;CC1V~\l.<lUGUh..u ,,(
the appropriate places:NAME OF COUNTERPARTY DEAL TICKET NUMBER DATEState Bank Of Indore 2003001967 22-10-2003State Bank Of Indore 2003001968 23-10-2003State Bank Of Hyderabad 2003001971 24-10-2003State Bank OfHyderabad" '-"2003001973 24-10-2003State Bank OfHyderabad 2003001974 24-10-2003Necessary follow-up needs to be done with the above mentioned counterparties so that alldeal confirmations are received expeditiously.
ReceivedReceivedReceivedReceivedReceived
The change in accrued interest is due tothe' wrong calculation of interest. Onrechecking, SBBJ figures are correct, Theerror is due to wrong calculation of days.
Transactions are being distributed so as tocomply with the RBI guidelines. Thebrokers who have crossed the 5%threshold have been kept under coolingperiod. However, the present position ason 17-11-2003 is as under:
Mata Securities India Pvt. Ltd., 5.94%Tower Capital & Securities Pvt. Ltd .6.45%
(b) State Bank. Of Bikarier & Jaipur .confirmation of deposits dated 03-10-2003 vide letterdated 07-10-2003 states that the maturity values of deposits advised in PMS DealConfirmations. for DT 200300189~ and 2003001904 should be Rs.S2,89,28,038.00 andRs52,89,28,037.00 instead ofRs.52,90,10,278.00 and Rs.52.,90,lO,277.00 as mentionedtherein.The mis-match in maturity amounts needs to examined carefully .In case,the amounts asadvised by PMS deal confirmations were incorrect.besides re-confirming the correct valuesto SBBJ,it is also necessary to examine how the incorrect values were computed in the firstinstance and take appropriate remedial action to avoid recurrence of such instances in future.
4.DISTRIBUTION OF TRANSACTIONS AMQNGST BROKERS:The RBI guidelines for engagement of brokers stipulate that a disproportionate part of thebusiness should not be transacted through only a few brokers and aggregate contract limitsshould be fixed for each of the approved brokers.A limit of 5% of total transactionsentered into by a Bank during a year should be treated as the aggregate upper contractlimit for each of the approved brokers.Hence,care must be taken to ensure that transactionsare equitably distributed amongst the empaneUed brokers throughout the year.The statement of broker-wise exposure as on 31-10-2003 in respect of transactionsundertaken on behalf of the Central Board Of Trustees Employees Provident Fund indicatesthat the 5% limit had been exceeded in the following cases:
.Name of Broker Percentage ShareMata Securities India Private Limited 6.03Tower Capital & Securities Private Limited 5.98SBI Capital Markets Limited 5.04
C-OCT 03 (213)
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that the buik otihe transactions ".:.; routed through brokers other than those mentioned aboveand the stipulated limit of 5% of total transactions during the year is not exceeded inrespect of any broker.Otherwise.it would be necessary to report the exceeding of the limit inrespect of each individual broker to the Central Board post-facto along with the reasonstherefor.
5.SUBMISSION OF REPORTSIMEMORANDA:y~arly review for 2002-2003 had been submitted to ECCB on August 22,2003.
C-OCT 03(3/3)
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t-rl-4OO 021.Treasury Department, Corporate Centre.Post Box No. 12, Mumbal-400 021.~/Fax: 22045468/22028779/22868220m/Telegram : APEX
The Regional Provident Commisslcnertlnvestment)"Employees Provident Fund Organisation,Shavishya Nidhi Shavan, .'
I ~~,Bhikaji Cama Place,LNew Delhi 110 066
. / /P (,-1' ~/Date: R,911·o3>iff. Sf>lfT<n ~o. TV ~ s I 16
Dear Sir,~
~')\\1/IDLE FUNDS FOR THE FORTNIGHT ENDED ON 30-11-2003
We are enclosing the idle funds for the fortnight ended 30-11-2003 for yourperusal. The average idle funds during the fortnight was at Rs. 2.80 Crores. .. -'
Yours faithfuly,
~,,~~.Deputy General Manager(PMS & CS}
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·crnirtf e EPFO MAIN ACCOUNT (AMOUNT AND C("OSINGBALANCE IN RS. CRORES),n IDLE FUNDS STATEMENT FOR THE PEBlOtt1~t1...2003J0-30 ••1·1-2003· -.---.---_e __ .-----_.------ --_ .._-------_ .._-- -- --------------_ ..__ ...
rp DATE OPENING INVESTMENTS YTM AMOUNT VALUE CLOSING
t:- BALANCE MADE DATE BALANCE
r 16-11-03 8.00 Sunday 8,00
r 17-11-03 8.00 5.95% UBI BONOS 2013 5.94% 4.04 18-11-03 2.06
C'<
8.80% PNB BONDS 2012 5.85% 12.21< 18-11-03 15.07 19-11-O~ 1.61
C 19-11-03 1.61 NO TRANSACTIONS 1.6120-11-03 1.61 6.2O%-GUJSDL 2015 6.08% 6.14 20-11-03
C 6.20% GUJ SOL 2015 6.08% 5.12 20-11-036.20% MP SOL 2015 6.08% 5.12 20-11-03
( 6.2O%MAH SOL 2015 6.08% 1.29 .20-11-03 (16.06)21-11-03 4.20 NO TRANSACTIONS !
4.20(i
(22-11-03 30.06 NO TRANSACTIONS 30.0623-11-03 38.31 NO TRANSACTIONS 38.31
(, 24-11-03 38.31 4.20% FD WITH SBI FOR 4.20% 100.00 24-11-03 (61.69)14 DAYS MATURING
( ON 08-12-2003
Ci 25-11-03 70.33 5% FD WITH SBI FOR 5.00% 10.00 25-11-0345 DAYS
( 5.85% PFC BONOS 2010 5.84% 25.47 27-11-03PUT CALL OPTION 2008
( 5.80% PNB BONOS 2013 6.00% 24.97 27-11-Q3 9.98
t 26-11-03 9.98 HOLIDAY 9.9827-11-03 9.98 FD WITH SBH FOR 364 5.82% 20.00 27-11-03 (10.02)
DAYS'@ 5.70%28-11-03 0.60 NO TRANSACTIONS 0;60
29-11-03 12.50 NO TRANSACTIONS 12.5030-11-03 12.50 SUNDAY 12.50
AVERAGE IDLE FUNDS 2.91
'.
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I'" rEPFO ACCOUNT NO..11 (AMOUNT, OPENING AND CLOSING BALANCE IN CRORES)A IDLE FUNDS FOR THE PERIOD 16-11-2003 TO 30-11-2003 r,r:
DATE OPENING INVESTMENTS MADE YTM AMOUNT VALUE CLOSINGBALANCE DATE BALANCE
c:('
16-11-03 31.44 Sunday 31.4417-11-03 31.44 5.95% UBI BONDS 2013 5.94% 15.18 18-11-03 r
-00- 5.94% 15.18 18-11-03 1.0618-11-03 5.85% PFC BONDS 2010 5.81% 20.38 19-11-03
).(6.80 .'
8.80% PNB BONOS 2012 5.85% 12.21 19-11-038.80% PNB BONDS 2012 5.85% 3.66 19-11-03 (29.45) (
19-11-03 0.98 NO TRANSACTIONS 0.98 (
20-11-03 11.24 6.20% GUJSDL 2015 6.08% 29.71 20:-11-036.20% WB SOL 2015 6.08% 0.22 20-11-03 (18.69)
21-11-03 5.28 NO TRANSACTIONS 5.28
22-11-03 50.07 6.10% PGC 2007 5.80% 5.15 24-11-03 (
6.10% PGC 2008 5.86% 5.15 24-11-03(
7.95% IRFC 2007 5.91% 21.89 24-11-03 (17.88)23-11-03 58.67 SUNDAY 58.6724-11-03 58.67 4.50% FD FOR 21DAYS
MATURING ON 15-12-03 4.60% 100.00 24-11-03 (41.33) ("
(25-11-03 83.01 5% FD WITH SBI FOR
45 DAYS 5.005 90.00 25-11-03 (6.99) (26-11-03 Nil HOLIDAY NIL27-11-03 NIL FD WITH SBH FOR 364 \' (
- [email protected]% 5.82% 10.00 27-11-03 (9.98)28-11-03 0.83 NO TRANSACTIONS 0.83
29-11-03 52.90 6.90% UNION BANK OF "-
INDIA BONDS 2010 6.01% 25.00 01-12-03 27.90C
30-11-03 27.90 SUNDAY 27.90
AVERAGE IDLE FUNDS 2.12
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EPFO ACCOUNT NO. 25 (AMOUNT AND CLOSING BALANCE IN RS. Rs. Crores
~~-~----~--~-- -
IDLE FUNDS FOR THE PERIOD 16-11-2003 TO 30-11-03
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DATE OPENING INVESTMENTS MADE . YTM- BALANCE
AMOUNT VALUEDATE
CLOSINGBALANCE
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16-11-0317-11-0318-11-03
2.70 Sunday2.70 NO TRANSACTIONS2.90 NO TRANSACTIONS
2.702.702.90
19-11-03 3.22 NO TRANSACTIONS .3.2220-11-03 3.72 6.20% KERALASPL 2015 6.08% 4.59 (0.87)21-11-03 0.38 NO TRANSACTIONS 0.38
22-11-03 1.44 NO T~SACTIONS 1.4423-11-03 1.94 SUNDAY 1.9424-11-03 1.94 NO TRANSACTIONS 1.94
25-11-03 4.31 NO TRANSACTIONS 4.3126-11-03 4.54 HOLIDAY 4.5427-11-03 4.54 FD WITH SBH FOR 364 5.82"'{' 5.00 27-11-03 (0.46)
[email protected]%28-1t"()3 O.{)5 NO TRANSACTIONS 0;05
29-11-03 3.60 NO TRANSACTIONS 3.6030-11-03 3.60 SUNDAY 3.60
AVERAGE IDLE FUNDS 2.13
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State Bank of India
.m-. ftNrq, C61(.ntZ ~, q;J Qcfr in. 12,
t-r'f-4OO 021.Treasury Department, Corporate Centre.Post BOx No: 12, Mumbal-400021.~/Fax: 22045468' 22028779' 2286 8220em/Telegram : APE~
;
The Regional Provident Fund Commissioner,(lnvestm"ent)The Employees Provident Fund Organisation,Bhavishya Nidhi Shavan,~~:hikaiji Cama Place,
Delhi 110 066~. ~ I No. 7>-- II-1M SIIR4~ ~/Oate: I czz . 63
Dear Sir,
IDLE FUNDS FOR THE FORTNIGHT ENDED 15-12-2003
We are encloslnq the idle funds for the fortnight ended on 15-12-2003 for yourperusal and necessary action. The idle funds for this fortnight is at Rs. 1"0.60Crores.
Yours faithfully,
.r- LLeJ,;o~Deputy General Manager(PMS & CS)
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(';.- .. IDLE FUNDS STATEMENT FOR THE PERIOD 01-Dec-03 TO 15-12-03
C''- DATE . OPENING INVESTMENTS MADE YTM AMOUNT VALUE CLOSING
c .BALANCE DATE BALANCE.
t: 01-12-03 66.28 6.20% ORISSA SOL 2015 6.15% 6.65 01-12-036.20%WB SOL 2015 6.15% 16.33 01-12-03
r: ~ - 6.90% UBI BONDS 2010 6.05% 33.37 02-12-037.75% ANDHRA BANK 6.11% • 5.47 02-12-03c: BONDS 20096.90% UBI BONDS 2010 6.05% 5.47 02-12-03 (1.01 )
C 02-12-03 67.34 NO TRANSACTIONS 67.3403-12-03 85.68 FD WITH BANK OF 5.42% 50.00 03-12-03
(i MAHARASHTRA FOR 6MONTHS @ 5.40%
C FD WITH SBI FOR 55 4.85% 10.00 03-12-03 25.68
04-12-03 35.80 FD WITH STATE BANK 5.42% 35.00 04-12-03 0.80OF SAURASHTRA
( FOR 6 [email protected]%05-12-03 2.00 NO TRANSACTIONS 2.00
C( 06-12-03 31.95 NO TRANSACTIONS 31.95
(07-12-03 31.95 SUNDAY 31.9508-12-03 36.28 NO TRANSACTIONS 36.28
( 09-12-03 52.35 5.35% FD WITH ALLAHA- 5.37% 10.00 09-12-03BAD BANK FOR 6 MTHS
, 5.40% FO WITH BANK OFMAHARASHTRA FOR
( 6 MONTHS 5.42% 35.00 09-12-03 7.3510-12-03 8.356.20%WBSDL2015 6.10% 10.26 10-12-03 (1.91 )
l 11-12-03 5.36 NO TRANSACTIONS 5.3612-12-03 10.28 10.18% G SEC 2026 6.27% 11.12 12-12-03
FD WITH SBI FOR 7 4.20% 37.00 12-12-03 (36.84)[email protected]%
13-12-03 10.52 NO TRANSACTIONS 1<l.52
14-12-03 13.08 SUNDAY 13.0815-12-03 13.08 5.25% FD WITH S81 FOR 5.27% 100.00 15-12..Q3 (86.92)
SIX MONTHS
;;;
AVERAGE IDLE FUNDS DURING THE PERIOD 7.0420
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EPFO MAIN ACCOUNT (AMOUNT AND CLOSING BALANCE IN RS. CRORES),..~IDLE FUNDS FOR THE PERIOD FROM ·01-12-03 TO 15-12-03 r
DATE OPENING INVESTMENTS MADE YrM AMOUNT VALUE CLOSING c:BALANCE INRS. DATE BAlANCE
01-12-03 20.02 No transactions 20.02'('
02-12-03 70.92 No transactions 70.92 (~03-12-03 107.92 FD WITH S81 FOR 55
[email protected]% 4.85 105.00 03-12-03 2.92 ,--- (:04-12-03 2.92 No transactions 2.95
05-12-03 2.95 No Transactions 2.95 C06-12-03 2.95 No Transactions 2.95 c07-12-03 . 2.95 Sunday 2.9508-12-03 10.28 FD WITH BANK OF 5.52% 100.00 08-12-03 -89.72
MAHARASHTRA FOR C6 MONTHS @5.50%
C09-12-03 15.57 5.35% FD WITH ALLAHA-BAD BANK FOR 6 MTHS 5.37% 15.00 09-12-03 0.57
(10-12-03 0.57 6.20% MAHARASHTRA 6.10% 6.28 10-12-03 -5.71
SOL 2015 C11-12-03 0.27 No Transactions nil12-12-03 nil 10.18% G Sec2026 6.27% 15.54 12-12-03 C
FD WITH S81 FOR 7 DAY~ 4.20% 9.00 12-12-03 -24.544.20% (
13-12-03 5.45 No Transactions 5.4514-12-03 15.08 Sunday 15.08 (15-12-03 15.08 No Transactions 15.08
CAVERAGE IDLE FUNDS DURING THE PERIOD 1.5621429
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EPFO ACCOUNT NO. 25 (IDLE FUNDS FOR THE PERIOD FROM 01-Dec-03 TO 15-12-03
(DATE OPENING INVESTMENTS MADE '. YTM AMOUNT VAlUE- CLOSING
BALANCE· DATE BALANCE C01-12-03 4.34 No transactions 4.34 l02-12-03 8.31 No transectlons 8.3103-12-03 10.02 FD WITH SBI FOR 55 4.85% 10.00 03-12-03 0.02 l
[email protected]%04·12-03 0.43 No transactions 0.43 l05·12-03 0.55 No transactions 0.5506-12-03 1.88 No transactions 1.88 C07-12-03 2.27 No transactions 2.2708~12-03 C09-12-03 2.88 No transactions 2.88 i .-\.
10-12-03 3.08 No transactions 3.08 l,11-12-03 3.28 No transactions 3.2812-12-03 3.43 FD WITH SBI FOR 7 4.20% 4.00 12-12-03 -0.57
DAYS @4.20% L13-12-03 0.32 No transactions 0.3214-12-03 0.63 sunday 0.63 l
15-12-03 0.63 No transactions ~2- 0.63 (
AVERAGE IDlf rUNDS DURING THE PERIOD 20035714
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CIi11rfcmtr,CfiIt.;alt ~. 1R ~ ib. 12,
·~~400021.Treasury Department, Corporate Centre.Post BoxNo. 12, Mumbal-400 021.~/Fax: 22045468/22028179/22868220em/Telegram: APEX
THE REGIONAL PROVIDENT FUND COMMISSIONER ( IN;YST)EMPLOYEES PROVIDENT FUND ORGANISAT.IONBHAVISHYA NIDHI BHAVAN, 14 ,BHlKAJI CAMA PLACE,fEW DELHI -110066
:;n. sr»ricf; I No. ~/Date:
Tr.l PMS/ M+oA 01.01.2004Dear Sir,
IDLE FUNDS STATEMENTS FOR THE PERIO,U :(1) 16.12.2003 TO 3~.12.2003
We forward herewith the abovementioned statement for your kindinfonnation.The average idle fimdsduringthefertnight were only Rs.8.86 _crore, a figure which is far lower than the average daily inflow of funds.The level would have been even lower but f-orour inability to invest on 25th
December 2003, a holiday on account of Christmas, an amount of Rs. 36.04 .crore received late on 24th December 2003 and on 28th December 2003, aSunday, an amount of Rs.46.18 crore received late on the afternoon ofSaturday.Z?" December 2003. The amount of Rs.46. I8 crore could also notbe invested on Monday, zs" December 2003 because there was a Bond issueby Canara Bank but our bid was not acceptable to them. Moreover, the factthat from the day the information was received by the market that the SDSinterest would be released on 0110112004, traders took up positions onvarious securities normally purchased by PFs, resulting in skyrocketingprices of securities, made investment ratsher difficult. .
fa eputy General Manager(PMS &CS)
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EPFO MAIN ACCOUNTIDLE FUNDS STATEMENT FOR THE'PERIOD 16.12~03 TO 31.12.03 .
OPt;NING INVESTMENTS MADE YTM AMOUNT VALUEBALANCE DATERS.CRORE ( % ) RS.CRORE
16/12103 16.16 10.18% G.S.2026 6.27 7.4810.18% G.S.2026 6.27 7.49
14.972.88
~.'.f-,,.~
e DATE
17/1210318/1210319/12103
20/12/03
21/1210322/12103
2311210324112/03
25/1210326/12103
27/12/03
281t210329/12/0330/12/03
31/12/03
14.1814.18
3.660.784.02
0.35
1.03 '1.03
0.140.14
10.25% G.S.2021 6.15No transactions5.35%SYNDtCATE BANK FDFOR 6 MTHSMATUR.19/6/il45.35%SYNDICATE BANK FDFOR 6 MTHS MATUR.20/6/04SUNDAY5.35%SYNDICATE BANK FDFOR 6 MTHS MATUR.2216/04No transactions ,5.40%SYNDICATE BANK FDFOR 6 MTHS MATUR.24/6/04HOLIDAY -CHRISTMAS5,40%SYNDICATE BANK FDFOR 6 MTHS MATUR.26/6/045.25% VIJAYA BANK FDFOR 6 MTHS MATUR.26/6/045.25%' CANARA BANK FDFOR6'MTHS'MA'ftJR.2616104
.5.37
5.37
5.37 1.3
5.42 34
5.42 25
5.27" 23.3
5.27TOTAL
0.348:6
0.13 5.25% ANDHRA BANK FDFOR 6 MTHS MATUR.27/6/04 5.275.25% VIJAYA BANK FDFOR 6 MTHS MATUR.27/6/04 5.27
TOTAL13.19 SUNDAY13.19 No transactions
31 5.70%QLYCOMP.UNION BANKOF INDIA FD FOR 364 DAYSMAT!JR.2811212004 5.8
3.87 5.75% ANDHRA BANK FD FOR180 DAYS MATUR.2816104 5.75
4518
AVERAGE IDLE FUNDS DURING THE PERIOD: Rs.2.78 CRORE
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CLOSINGBALANCERS.CRORf
16/1210316112/03 . 1.19
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17/12103 0.78 r0.78 1r r :
19 19/12103 -14.98
6 20/12103 -5.651.03
22112103 -6.270.14
24/12103 -33.8614.18
26/12103
26/12/03
,., 26/12103-34.42
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-8.8713.19 <-13.19
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30/12103 -14 (
31/12103 -14.13 (
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EPF ACCOUNT NO. 25IDLE FUNDS STATSMI:NTFOR THE PERIOD 16.12.03 TO 31.12.03
r: DATE OPENING INVESTMENTS' YTM AMOUNT VALUE CLOSI~JGBALANCE MADE DArE BALANCE
c (Rs. CR.) % (RS. CR.) (RS. CR.)16/12103 1.02 NO TRANSACTIONS 1.02c: 17/12103 1.07 10.25% G.S.2021 6.15 0.72 17/12103 0.3518/12103 0.49 NO TRANSACTIONS 0.49
(' 19/12103 0.77 NO TRANSACTIONS 0.7720/12103 6.37 5.35%QLY.COMP.-r .. e-
SYNDICATE BK FO\ ,-
FOR 6 MTHS MATUR.e, 20/06104 5.37 6 20/12103 0.37
C21/12103 0.37 SUNDAY 0.3722112103 0.94 5.35% QLY.COMP.
cJ SYNDICATE BK FOFOR 6 MTHS MATUR.
e 22106/04 5.37 1.3 22112103 -0.3623112103 0.04 5.40% QLY.COMP.
c SYNDICATE BK FOFOR 6 MTHS MATUR.
e, 23/06/04 5.42 0.85 23/12103 -0.8124/12103 0.07 5.40% QLY.COMP.
e, SYNDICATE BK FOFOR 6 MTHS MATUR.
(I 24/06/04 5.42 0.3 24/12103 -0.2325112103 0.44 HOLIDAY -CHRISTMAS 0.44
(, 26/12103 0.44 5.25%QL Y COMPVIJAYA BK FO FOR
( i 6 MTH MAT .2616104 5.27 1.7 26/12103 -1.2627/12103 0.29 NO TRANSACTlONS 0.29
". "5 28/12103 2.31 SUNDAY 2.3129112103 2.31 NO TRANSACTIONS 2.31
( i 30/12/03 3.15 NO TRANSACTIONS 3.1531/12103 3.38 5.75% ANDHRA BK
(' FD FOR 180 DAYSMATUR.28/06/04 5.75 3 31/12/03 0.38
AVERAGE IDLE FUNDS DURING THE PERIOD: RS.O.77CRORE
EPF ACCOUNT NO.11ID~E FUNDS STATEMENT FOR THE PERJODi6.12.()3TO 31:12.03
OPENING INVESTMENTS MADE· 'YTM AMOUNT VALUEBAlANCE -DATE-(Rs. CR.) ( %) (Rs. CR.)
;t6/12103 21.31 10.25% GOVT STOCK 2021 6.15 21.5917/12103: 0.33 10.25% GOVTSTOCK2021 6.15 7.19
10;25% GOVTSTOCK2021 6.15 2.15TOTAl - 9.34
n'
DATEr,
18/12103 0.5819/12/03 11.08
20112103 11.47
21/12103 1.5522112103 1.55
,23/12/03 0.47
24/12103 0.05
25112103 21.4226/12/03 21.42
NO TRANSACTjONS5.35% FD SYNDICATE BK-FOR 6M MAT. 19/06/045.35% FD SYNDICATE BKFOR 6M MAT. 19/06/04
SUNDAY !5.35% FD SYNDICATE BKFOR 6M MAT. 221061045.40% FD SYND~CATE BKFOR 6M MAT. 231061045.40% FD SYNDICATE BKFOR 6M MAT. 24/06/04HOLIDAY -CHRISTMAS5.60%FDBOMFOR 6 M·MAT. 26106/045.25% FD CANARA BANKFOR 6 M MAT. 26106/04
27/12103 0.04
28/12103 30.6829/12103 30.6830/12103 92.09
31/12/03 5.43
5.25% FD ANDHRA BANKFOR 6 M MAT. 27106104SUNDAYNO TRANSACTIONS5.70% OLY.COMP FD FOR364 DAYS WITH UNIONBKOF INDIA MATUR.28/121045.75% ANDHRA BANKFDFOR 180 DAYS MATUR.28/06/04
5.37
5.37
CLOSINGBALANCE(Rs. CR.)
16/12103 -0.2817/1210317/12103
81 19/12103
33 20/12103
5.37 7 22112103
5.42 19.2 23/12103
5.42 9.7 24/12103
5.62 50 26/12103
5.27 9.7 26/12103TOTAL 59.7
5.27 13 27/12103
5.8
5.75
105 30/12/03
AVERAGE IDLE FUNDS DURING THE PERIOD:- RS.5.31 CRORE
49 31/12/03
-9.01
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-69.92
0.58 C-: C
c-21.53
1.55
-5.45
-18.73
-9.6521.42
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-12.9630.~8 (30.68
-12.91
-43.57
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e IDLEfFUNDSSTATEMENT FOR THE PERIOD 16.12.03 TO 31.12.03
(', DATE OPENING INVESTMENTS MADE . ·YTM AMOUNT VALUE CLOSING( BALANCE 'DATE BALANCEC. (Rs. CR.) (%) (Rs. CR.) (Rs. CR.)
16/12103 '21.31 10.25% GOVT STOCK 2021 6.15 21.59 16/12103 -0.28r: 17/12103 0.33 10.25% GOVT STOCK 2021 6.15 7.19 1711210310.25% GOVT STOCK 2021 6.15 2.15 17/12103
( TOTAL 9.34 -9.0118/12103 0.58 NO TRANSACTIONS 0.58
C 19/12103 11.08 5.35-% FD SYNDICATE BKFOR 6M MAT. 19106/04 5.37 81 19112103 -69.92r 20/12103 11.47 5.35% FD SYNDICAT:= BK
CFOR6MMAT. 19/06104 5.37 33 20/12103
-21.53
( 21/12103 1.55 SUNDAY i 1.5522112103 1.55 5.35% FD SYNDICATE BK
( FOR 6M MAT. 22106/04 5.37 7 22112103 -5.4523112103 0.47 5.40% FD SYNDICATE BK
C FOR 6M MAT. 23106/04 5.42 19.2 23/12103 -18.7324/12103 0.05 5.40% FD SYNDICATE BK
( FOR 6M MAT. 24/06104 5.42 9.7 24/12103 -9.6525112103 21.42 HOLIDAY-CHRISTMAS 21.42
C· 26/12103 21.42 5.60%FDBOMFOR 6 M MAT. 26106104 5.62 50 26/12103
t 5.25% FD CANARA BANKFOR 6 M MAr. 26/06104 5.27 9.7 26/12103
( TOTAL 59.7 -38.2827;12103 0.04 5.25% FD ANDHRABANK
( FOR 6 M MAT. 27I06I04 5.27 13 271V»03 -12.9628112103 30.68 SUNDAY 30.6829112103 ~0.68 NO TRANSACTIONS 30.6830/12103 92.09 5.70% QLY.COMP FD FOR
( 364 DAYS WITH UNION BKOFINI)IA MATUR.28112/04 5.8 105 30/12103 -12.91
( 31/12103 5.43 5.75% ANDHRA BANK FDFOR 180 DAYS MATUR.
l 28/06104 5.75 49 31/12103 -43.57
AVERAGE IDLE FUNDS DURiNG THEPERt00 :- Rs.5.31 CRORE
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¥f~4QO-011.-Treasury Department, Corporate Centre.. Post BoX No. 12, Mumbal-400021.~/Fax-: 220454681,2202 8779/2286 8220
Vi /. ""/T •••• <am: APEX
~~II~~ THE REGIONAL PROVIDENT FUND COMMISSIONER ( INVST )\QV' EMPLOYEES PROVIDENT FUND ORGANISATION
BHAVISHYA NIDm BHAVAN, 14 , BHIKAJI CAMA PLACE,NfW DELHI-It 0066
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Tr.l PMSI ~ 1(;s- 24.01.2004Dear Sir,
IDLE FUNDS STATEMENTS FOR THE PERIOD:(1) 01.01.2004 TO 15.01.2004 (
(We forward herewith the abovementioned statement for your kindinformation.. .2. We had received on 01/01104 SDS interest of Rs. 4407.79 crore. In orderto present a clearer picture of the actual level of idle funds, we have preparedtwo statements of idle funds for the fortnight under review, one pertainingto SDS interest received and invested and the other pertaining to the usualfunds received and invested. An auction of Central Government Securitieswas held on 07/01/04 and payment was due and made on 08/01104. Theauction of State Development Loans was held on 19/01/2004 arid payoutdate was 21101104.We completed deployment of the idle funds on 21101104and this will be reflected in the idle funds statement for the fortnight16/0 1104 to 31/01104.The idle funds for the SDS interest received andinvested were Rs. 855.51 crore and that for funds received and invested inthe normal course Rs. 22.97 crore. .
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(",;,- DETAILS OF SDS INTEREST RECEIVED ANDJNYESTMENTS MADEIDLE FUNDS STATEMENT FOR THE PERIOD 01.01.04 TO 15.01.04
-DATE OPENING INVESTMENTS YTM AMOUNT VALUE CLOSINGc: BALANCE MADE DATE BALANCE(Rs. CR.) % (RS. CR.) _(RS. CR.)r:
01101104 Nil 4282.69c: 02101104 428~.69 5.70% qly cmp FO 5.8 100 02101104SBH for 364 days mat.
r f- 31/121045.60% qly cmp FO 5.62 200 02101/04BOM for 6 mths mat.e) 021071045:60% qly cmp FO 5.62 300 02101/04
C 80M for 6 mths mat.02107104
C 4.25% SB India FO 4.25 2000 02101/04for 10 days mat.
12101104(, 5.75% Andhra Bk.FD 5.75 200 02101/04
for 9 mts 2 days mat.
C 04110104 1482.74total 2800
C 03101/04 1513.83 5.55% sas FD for 5.57 100 03101/04150 days mat. At
C 01I06I045.60% SBS FO for 5.62 100 03101/046 mths mat.03lO7104 1313.83
(J total 200 .04101/04 1313.83- Sunday 1313.83
( 05101104 1313.83 No transactions 1313.8306101/04 1325.41 5.60% FD of BOM for 5.68 100 06/01/04
( 9 mths mat. 061011045.60% FOot-UBI for
, . 364 days mat. 04101104 5.7 100 06/01104 1125.41( \ ,__ - total 200
07/01/04 1132.97 Tr. To Mumbai Main Br 20 07101/04 1112.97
(I (Req No. 36)
( .'08/01/04 1113.83 5.87% GS 2022(Bid 5.85 255.82 08101/04
Rs 250.00 Cr.}5.87% GS 2022(Bid 5.82 513.35 08101/04
( Rs 500.00 Cr.)5.87% GS 2022(Bid 5.8 365.15 06(01/04Rs. 354.66 cr.) -20.49
total 1134.32
09101104 0.04 No transactions 0.04
10101104 8.6 Tr. To Mumbai Main Br 18.6 10101/04 -10(Req No. 36)
11/01/04 0.06 Sunday 0.06
12101/04 0.06 4.25% FD with S81 for 4.25 2000 12101/04 ~CO7 days mat. 191011045.65% FD with UBI for 5.75 2 12101/04364days--matl0/01/05 -2001.94
total 2002, 13101/04 3 5.65% FD with UBI for 5.75 3 13101104 nil
364 dayS mat. 11101/05
14/01104 0.21 No transaction 0.21
15101104 0.34 TrTo Mumbai br. 1.8 15101104(Req.No.37) Nil
Average Idle Funds for the period 01101104 10 15101104 =Rs 796.37 crore
Avt~;~ ~ ~~ rei: ft.1q..q , ' ?J1+ ~.}'t t NIt.)~'-;-3~·si ~~-:::
DATE
01/01/04 Nil
02/01/04
03101104
04/01/04
05/01104
06/01/04
07101/04
08/01/04
EPFACCOUNT NO. 11DETAILS OF SDS INTEREST RECEIVEDAND INVESTMENTS MADE'IDLE FUNDSSTATEMENT FOR THE PERIOD 01.01.04 TO 15.01.04OPENING INVESTMENTS YTM AMOUNT VAlUEBALANCE MADE DATE( Rs. CR.) % (RS. CR.)
No transactions
110.45 No transactions
110.45 No transactions
110.45 Sunday
110.45 5.65% qly comp UB~FD for 364 days mat.03/01/05
5.75 100 05101104
10.45 No transactions
10.45 No transactions
10.45 5.87% GS 2022 5.8 10A5 08/01/04 Nil
Average Idle Funds torUle period 01/01/04 to 15101104 = 59.14Crore
.CLOSINGBAlANCE(RS. CR.)
110.45
110.45
110.45
110.45
10.45
10.45
10.45
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EPF ACCOUNT NO. 25DETAILS OF SDSJNTEREST RECEIY~D AND INVESTMENTS MADE.IDLE FUNDS STATEMENT FOR THE PERIOD 01.01.04 TO 1:5.01.04OPENING INVESTMENTS vTM AMOUNT VALUEBALANCE MADE DATE( Rs. CR.) % (RS. CR.)
0.21 5.75% FD Andhra Bk.for 180 days mat.29/06/04
5.75 0.21 01/01/04 Nil
Average idle funds for the period 01/01/04 to 15101104= Nil
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CLOSINGBALANCE(RS. CR.)
.r: .,'o r-EPFO MAlN,ACCOUNT ,
f'..__ IDLE FUNDS STATEMENT FOR THE PERIOD01.01.04TO 1~1.04'DATE" --'OPf:NING·--- INVESTMENTS MADE YTM" 'AMOUNT VALUE
, BAlANCE DArERS.CRORE ( % ) RS.CRORE
01/01/04
02/01/04 Nil03/01/04 Nil04/01/04 Nil05101104 Nil
061*01/04 Nil,07/01/04 Nil08/01/04 Nil09/01/04 Nil10/01/04 Nil11/01/04 Nil12/01/04 Nil13-Jan Nil
14/01/04 Nil15/01104 Nil
CLOSINGBALANCERS.CRORE
2.31 5.60% 80M FD FOR 6MTHS MAT. 01/07/045.75% ANDH.BK FD FOR180 DAYS MAT. 29/06104 -38.69
5.62 ' 40 01/01/04
5.75 1 01/01/04
total 41No transactionsNo transactionsSundayNo transactionsNo transactionsNo transactionsNo transactionsNo transactionsNo transactionsSundayNo transactionsNo transactionsNo transactionsNo transactions
NilNil',NilNilNilNilNilNilNilNilNilNilNil.Nil
The average idle funds tor the period 01/01/04 to 15101104= Nil J-tr<J'IIv\. 0].-'0 \ -11 If. Q'" oAC\ Y 'j;
Note-All the balances in main ale and investments therefrom pertained to SOS interest.L
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EPFACCOUNT NO. 25IDLE FUNDSSTATEMENT FOR THE PERIOD 01.01.041'015.01.04OPENING ' "~"-iNVESTMENTS- ---vTM ..--- - AMOUNT VALUEBALANCe MADE DATE( Rs. CR.) % (RS. CR.)
CLOSING. BALANCE(RS. CR.)
01/01/04 0.77 5.75% ANDH.BK. FD 5.75 2.69 01/01/04 -1.92FOR 180 DAYSMAT. 29/06/04
02/01/04 0.24 No transactions 0.2403/01/04 2.37 No transactions 2.3704/01/04 - 2.37 Sunday 2.37
. 05/01/04 2.51 No transactiions 2.5106/01/04 4.66 No transactions 4.6607/01/04 5.05 No transactions 5.0508/01104 5.05 5.87% GS 2022 5.8 5.27 08/01/04 -0.2209/01104 0.01 No transactions 0.0110101/04 0.32 No transactions 0.3211/01/04 0.44 No transactions 0.4412/01104 0.44 5.65% UBI FD FOR 5.75 12101/04
364 DAYS MAT.10/01/05 -0.56
13101104 0.1 No transactions 0.1 _14/01/04 ' ' 0.17 No transactions 0.17l5701104 0.3 5.70%$YN.BK. FOR 5.8 0.3 15101/04
3564 DAYS MAT.13101/05 NIL
The average idle funds for the period 0'1101/04 to 15101104= Rs.1.21 crore
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EPF ACCOUNT NO.11IDLE FUNDS STATEMENT FOR THE PERIOD 01~01.04 TO 15.01.04
- O~PE""N"'I"'NG""- - - INVESTMENTS MADE ~ytM~' ~AMOiJNT VALUEBALANCE DATE(Rs. CR.) ( ~) (~s. CR.)
DATE CLOSINGBALANCE(Rs. CR.)
01/01/04 4.11 5.60% SB SAVRA.FO FOR _5.62 40 01/01/046MTHS MAT. 01107/045.75% ANpH.BAK. FD FOR 5.75 44.7 01101104 -80.59180 DAYS MAT. 29106/04
total 84.702101/04 0.01 No transactions 0.01*03/01/04 49.15 No transactions 49.15*04/01/04 49.15 Sunday 49.15*05/01/04 49.15 No transactions 49.15*06/01/04 75.5 No transactions 75.5*07/01/04 85.37 No transactions 85.37*08/01/04 110.83 5.87% GS 20~2 5.8 116.03 08/01/04 -5.20~/01/04 1.17 5.70% QLY COM SYNDICAT 5.8 125 09/01104 -123.83
BK. FD FOR 364 DAYS MAT.07/0-1/05
10/01/04 21.01 5.65% QLY. COM SB OF 5.75 100 10/01104 -78.99 -PATIALA FD FOR 364 DAYSMAT. 08/01/05
11/01/04 18.08 Sunday 18.0812101/04 18.08 5.65% aLY. COM FD OF 5.75 44 12101/04 -25.92
UBI FOR 364 DAYS MAT.10/01/05
13/01/04 0.08 5.65% QLY COM FD OF 5.75 10.7 13101/04 -10.62UBI FOR 364 DAYS MAT.11101/05 I14/01/04 0.08 5.65% aL Y COM FD OF -5.75 15 14/01/05 -14.92
UBI FOR 364 DAYS MAT.12101/05
-15101/04 0.85 5.70% QLY COM SYNDICAT 5.8 8.7 15101/05 -7.85BK. FD FOR 364 DAYS MAT.
13101/05
The average-idle funds for the period 01101/04 to 15101/04= Rs 21.76 crore
* Auction of Central Govt. security 5.87% GS 2022 on 07/01/04 was announced. The bids were to placedon 07/01/04 and the payout was scheduled for 08/01/04. Funds being accumulated with a view to investingin this security. This boosted the average idle funds figure.
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Treas~ Department, Corporate Centre.P.O$tQox No. 12, Mumbal-400 021.fR«/FQ : 2204 546812202 8779/2286 8220m/Telegram : APEX
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;TIlt REGIONAL PROVIDENT FUND COMMISSIONER (INVST)EMjtLOYEES PROVIDENT FUND ORGANISATIONBRAVISHYANIDm BRAVAN, 14 ,BHIKAJI CAMA PLACE,~'" ~ELm -1l~066t.t~/No. . ft;ri<c / Dale:i i. J
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.. I IDLE .FUNDS STATEMENTS FOR THE PERIOD:I, ~1) 16.01.2004 TO 31.01.2004iI,
i .'We!enclose Idle Funds statements separately for SDS interest amount andother than SDS interest for your perusal.The idle funds for the fortnight16/0112004 to 3110112004 are at Rs. 39.67 Crore, while for SDS the idlefunds are Rs. 125.10 Crore. We have completed investment of SDS interest()n.illOll2004 and thebalaBCe in the 8DS interest is Nil,
TrJPMS/~ry 07.02.2004
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1O~25%GS 2021mafunt{SO/05/21-1(}.70%GS 2020maturity 22104/20Total
6.1186 14.54-31/01104
6.1148 14.96 31/01/04
29.50
Average Idle Funds for the period 16/01/2004 to 31/0112004=Rs.25.91Crore
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I EPF ACCOUNT NO.11IDLE FUNDS STATEMENT F()R THE PERIOD 16.01.04 TO 31.01.04()~~!!!! INVESTMENTSMAQEYtM AMOUNlVALUE
B~",v~ DATE:rs' CR.) ( ~ (Rs. CR.)
1104 3.94 5.65%~qlyf:OntfdwithUBI 5.7500 18.00 16101104for 364 days mat. 14101105
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2 101/04
0.19
0.79
3.29
30.49
2 101/04: 48.48 ,-DA E; tHe i;;'j'~;
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23101/04
,2~/01/04T~r01l04
il01/04 .
2r'01/04 f
I :
28101104
.' "'"
0.09
6.48
48.77
48.77
48.71
72.37
69.66
2fOlI04, 45.41
No transactions
Sunday
5.65% qly com SBP FO for364 days mat. 17/01/0~5.65.%..q1ycomUBI-FD for364 days mal 17/01105Totai i
No transactions
'7.95%' GS 2032maturity 28I08I20327.95% GS 2032maturity 28/08/20325.90% Assam SOL 2017maturity 21101/20175.90% Orissa SOL 2017maturity 2110112017Total
11.60% GS 2020maturity 27/121202011.60% GS 2020maturity 2711212020Total
5.65% qIycom Syndicate BkFO for 364 days mat. 21/01/05
No transactions
Sunday
Holiday (Rep Day)
10.25% GS 2021maturity 301051202110.25%GS 2021maturity 30105/202110.25% GS 2021maturity 30105/202110.25% GS 2021maturity 3010512021Total
5.60% qly com UCO BK FDfor 364 days mat. 261011200510.25% GS 2021maturity 30/05/20211L.6.Q%.GS 2020maturity 2711212020Total
7.95% GS 2032maturity 28108/203210.25% GS 2021
50.00 19/01104
CLOSINGBALANCE(Rs. cR.)
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-1.81
0.79
0.79
6.00 19101104 ·52.71
56.00
'6~0925 19:22 21/01104
6.0925 12.81 21101/04" .'.
Nii
5.9000 4.66 21/01/04
5.9000 28.70 2tlO1104 -16.91
65.39
6.0694 39.70 22101/04
6.0694 7.94 22101/04
47.64
50.00 23101104
5.0580 21.93 27/01/04
6.0580 14.62 27/01/04
6.05801.31 27101/04
6.0580 7.31 27/01/04
51.11
5.7000 50.00 2810H04
6.0649 7.30 28101/04
~~t5.1t1281Ol/04
73.17
6.1203 31.97 29101/04
6.0826 1.29 29/01/04
S1-
-47.55
-43.52
48.77
48.77
48.77
21.2
-l.S1
6.21
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30/01/04
I3llO1104 [
46.26
maturity 30/05/2021Total 39.26
10.25% GS2021 6.1004 23.31 30101/04maturity 30/05/202110.25% GS 2021 6.1004 7.28 30/01/04maturity 30/051202110.25% GS 2021 6.1004 14.57 30/01104maturity 30/0512021-10.18% GS 2026 6.1415 7.64 30/01/04maturity 11/09/2026Total 52.80
10.25% GS 2021 6.1186 14.54 31/01104maturity 30/05/20215.60% qly com S8P FD 5.7000 50.00 31/01/04for 364 days mat. 29/01/05Total 64.54
36.96
Average Idle Funds for the period 16/01/2004 to 31/01/2004=Rs.10.95 Crore
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-0---,------:-,' OJ<-~---:-~~~~-.--~' . -::TMENTS YTM AMOUNT ~~~E
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16/01104 0.09 No transactions
17/01/04 0.27 No transactions;
I18101/04 0.27 SUnday
19101/04 0.31 No transactions
20/01/04 3.64 No transactions
21/01104 3.9, 5.~% Assam SOL2017 mat. 21/01/17
!
22101104 Nil No transactionst1~'1.M No transactions
'2 101/04~~~';2.12 No transactions_ ~,t.._,,,._~:_
2,101/04 (!R'~"2; 12 Sunday
26101/04 2.12 Holiday (Rep Day);
27/01/04 2.79 No transactions,. , I
26/01/04 13.72 No transactions,.!: " ~_. i
29101104 14.29 NO transactions;
30/01/04 15.43 10.18% GS 2026maturity 11/0912026
31101104 1.8 No transactions
5.9000
6.1415
4.23 21/01/17
15.29 30/01/04
Average 4dle Funds for the period 1610112004to 31/01/2004=Rs. 2.81 Crore
~ 0,V'\ \J J
CLOSINGBALANCE(RS. CR.)
0.09
0.27
0.27
0.31
3.64
-0.33
1.34
2.12
2.12
2.12
2.79
13.72
14.29
0.14
1.8
-"-:, .. -
iDATE
EPFACCOUNT NO.5DETAILSOF SOS INTERESTRECEIVEDAND INVESTMENTSMADEIDLCFUNDS STATEUaw"T-,=ORtHE PERIOD 1&:01:04 'F031OCf1.04 ..QP~JN~L___ __ ....IN'lESrMENTS l'nC---AMOUNT-VAWE---Ct;OSING------rBALANCE MADE DATE BALANCE( Rs. CR.) % (RS.CR.) . (RS. CR.)
16/01104 ND
17101/04 Nil
18/01104 NilI .
,1·01104 Nili.2 101/04 : 2001.63
21 0110412001.63I
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No transactions
No transactions
No transactions
No transactions
5.90% A.P SOL 2017 5.9000 24.79 21/01/04maturity 211011175.90% Assam SOL 2017 5.9000 100.00 21/01/04maturity 21/01/175.90% Bihar SOL 2017 5.9000 200.00 21101104maturity 21/01/175.90% GuJratSOL 2017 5.9000 150.00 21/01/04maturity 21/01117 -,I ,-,-:. '.1:
5.90% Haryana SOL 2017 5.9000 25.17 21/01/04maturity 21/011175.90% H.P. SOL 2017 5.9000 12.06 21/01/04maturity 21/01/175.90% Kamataka SOL 5.9000 20.64 2t/01/042017rnaturity 21/0tI175.90% Kerla SOl: 2017 5.9000 19.63 21/01/04maturity 21/01/175.90% M.P. SOL 2017 s.eooo 47.16 21/01104maturity 21/01/175.90% Maharashtra SOL 5.9000 150.00 21/01/042017 maturity 21/011175.90% Orissa SDL 2017 5.9000 200.00 21101/04maturity 21101/175.90% Pun!ab SOL 2017 5.9000 33.72 21/01/04maturity 21/01/175.90% Rajasthan SOL 5.9000 44.80 21/01/042017 maturity 21!01/175.90% TamH Nadu SOL 5.9000 30.14 21/011042017 maturity 21/011175.90% W.B. SOL 2017 5.9000 200.00 21/01/04maturity 211011175.90% U.P. SOL 2017 5.9000 300.00 21/01/04maturity 21/011175.90% Bihar SOL 2017 5.9000 100.00 21/01/04maturity 211011175.90% Maharashtra SOL 5.9000 35.00 21/01/04maturity 21/01/175.90% Orissa SOL 2017 5.9000 26.26 21/01/04maturity 21/01/175.90% U.P. ~OL 2017 5.9000 100.00 21/01/04maturity 21/01/175.90% W.B. SOL2017 5.9000 100.00 21/01/04maturity 21/01/175.90% Chhatisgarh SOL 5.9000 116.98 21101/04 Nil2017 maturity 21/01/17
2036.35
2001.63
Average Idle Funds for the period 16/0112004 to 3110112004= Rs. 125.10Crore
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~-400021.Treasury Department, Corporate Centre.Post Box No. 12, Mumbal-400 021.~/Fax: 22045468/22028"9/22868220<m/Telegram : APEX
THE REGIONAL PROVIDENT FUND COMMISSIONER ( INVST )EMPLOYEES PROVIDENT FUND ORGANISATIONBHAVISHYA NIDHI BHAV AN, 14 ,BHIKAJI CAMA PLACE,NE~ELHI -110066
'iff. ~/No. ~/Date:
Tr.l PMS/l.~IL 23.02.2004Dear Sir,
IDLE FUNDS STATEMENTS FOR THE PERIOD :(1) 01.02.2004 TO 15.02.2004
We forward herewith the abovementioned statement for your kindinf-ormation. The average idle funds for the period were Rs. 39.29 crore.
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EPF ACCOUNT NO. 25e IDLE FUNDS STATEMf:!N:r~f'QB THE PERIOD Q1.02.04 TO 15.02.04 r:c- OATE OPENING INVESTMENTS. YTM AMOUNT VALUE CLOSING r:
BAkANCE MADE DATE BAlANCE,..,. ( Rs.·CR.) % (RS. CR.) (RS. CR.) r-
01/02104 2.73 SUNDAY 2.73r('
02102104 2.73 HOllDAY(BAKR-ID) 2.73 ,'"" Co03/02104 2.73 NO TRANSACTIONS 2.73 .
('04/02104 3.74 NO TRANSACTIONS 3.74
('05102/04 5.91 NO TRANSACTIONS 5.91
(05102104 6.18 NO TRANSACTIONS 6.18
(07/02104 10.80 NO TRANSACTIONS 10.80
C08/02104 10.80 SUNDAY 10.80
(-
09/02104 11.52 NO TRANSACTIONS 11.52 (
10/02104 12.55 NO TRANSACTIONS 12.55 (11/02104 12.73 NO TRANSACTIONS 12.73 (
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12/02/04 12.91 NO TRANSACTIONS -12.91 (~
13102/04 14.30 10.25% GS STOCK 6.0965 13.87 13102/04 0.43 -: (2021
14/02/04 0.47 NO TRANSACTIONS 0.47
15/02104 1.02 SUNDAY 1.02 (
Average Idle Funds for the period 01/02/2004 to 15/02/2oo4=Rs.6.48 Crbrel.
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-"
DATE YTM AMOUNT VAlUE CLOSING(',r BAlANCE DATE BALANCEr RS.CRORE ( % ) RS.CRORE RS.CRORE
(' 01102104 10.54 SUNDAY 10.54
c:02102104 10.54 HOllDAY(BAKR-ID) 10.54
\-,
c 03102104 10.54 5.60% QLY COM SBP FD 5.6200 25;00 03/02104 14.46 .
c FOR 6 MTHS MAT. 03108/04
C 04/02104 23.92 NO TRANSACTIONS 23.92
C' 05/02104 31.69 NO TRANSACTIONS 31.69
C 06/02104 61.67 NO TRANSACTIONS 61.67
C 07/02104 96.38 4% SBI FD FOR 7 DAYS 4.0000 100.00 07/02104 -3.62MAT. 14/02104
C
C 08/02104 7.88 SUNDAY 7.88
C 09/02104 7.88 4.25.% SstFO FOR 7 t>A¥S 42500 1.00 09f02J04MAT. 16/02104
( 4.25% SBI FD FOR 10DAY~ 4.2500 26.00 09/02104
( MAT. 19/02104sub-total 33.00 -25.12
(-; 10/02104 8.98 NO TRANSACTIONS 8.98
(11/02104 9.64 NO TRANSACTIONS 9.64
(12/02104 9.64 Funds transferred to Mumbai 11.00 -1.36
( main branch-Req no. 38
( 13/02/04 1.57 NO TRANSACTIONS 2.20
C 14/02104 2.20 NO TRANSACTIONS 2.20
C 15/02/04 2.20 SUNDAY 2.20
C•...- Average Idle Funds for the period 01/0212004 to 15102L2004=Rs.15.49 Crore'-.-
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DATE
EPF ACCOUNT NO.1'"IDLE FUN:DS STATEM..,E••••N•••T;;;ocF=O=R~TH;oc·E=PERIOD 01.02.04-TO 15.02.04
OPENING INVESTMENTS MADE YTM AMOUNl VALUEBALANCE DATE(Rs. CR.) ( % ) (Rs. CR.)
01/02/04 Nil SUNDAY
02102104 Nil HOllDAY(BAKR-ID}
03102104 Nil 5.6900 50.00 03/021045.60% Ql Y COM SSP FD FOR9 MTHS MATU.03/11/045.60% Ql Y COM SBP FD FOR6 MTHS MATU. 03/08/04
5.6200 25.00. 03/02104
sub-total 75.00
04102/04 5.75% SIM INT ANDH.BK. FD FOR 5.7500 25.00 04/02104180 DAYS MAT. 02108104
7.92
05102/04 20.98 NO TRANSACTIONS
06/02/04 NO TRANSACTIONS84.00
07/02104 177.73. ,. . . - ..~-,.- . 4% SBI, fDfORWJ1tW$, . 4:9QQO 100.00. 07102104MAT. 171021044% SBI FO FOR 14 DAYS 4.0000 100.00 07102104MAT. 21102104 .
sub-total 200.00
08/02104 2,89 SUNDAY
09102/04 2.89 4.25% SBI FD FOR 7 DAYSMAT. 16/02/04
10/02/04 14.54 NO TRANSACTIONS
11/02104 22.41 10.18%65 2026
12/02/04 13.07 4.25% Ql Y COM S81 FD FOR7DAYS MATURtNG 19/02104
13102104 6.82 10.25% GS STOCK 2021
14/02104 1.78 NO TRANSACTIONS
15/02/04 1.78 SUNDAY
4.2500 42.00 09/02104
CLOSINGBALANCE(Rs. CR.)
NIL
Nil
-75.00
-17.08
20.98
84.00
-22.27
~
2.89
-39.11
6.1246 15.34 11/02104 7.07
14.54
4.2500 35.00 12/02/04
6.0965 5.84 13/02/04
Average Idle Funds for the period 01/0212004 to 15/0212004=Rs.17.32 Crore
21.93
0.98
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ITHE REGIONAL PROVIDENT FUND COMMISSIONER (INVST)EMPLOYEES PROVIDENT FUND ORGANISATIONBHAVISHYA NIDHI BBAVAN, 14 , BHlKAJI CAMA P~ACE ,NEW DELHI -110066
L~. iJilriq; I No. Tr.l PMSI'!J-sltJ -~/Oate
Dear Sir,•
IDLE FUNDS STATEMENTS FOR THE PERIOD:(1) 16.02.2004 TO 29.02.2004
11.03.2004
We forward herewith the abovementionedstatemenL for your kindinformation. The average idle fandsfor tbeperied weee Rs. 41.95--crore.This figure appears exaggerated because we had to hold funds from16/02/2004 onwards to enable us to subscribe to the State DevelopmentLoans issue opening on 19/0212004, pay-in date for which was 21/0212004.18/02/2004 was aholiday on account of Maha Shivaratri.
Yours aithfully,
,for eputy General Manager(PMS &CS)
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.EPFOMAIN ACCOUNTIDLE FUNDS STATEMENTFORTHE'PERIOD16.02.lM TO 29.02.04
DATE OPENING INVESTMENTSMADE YTM AMOUNT VAl~\;ltJSlNG. BALANCE DATE BALANCERS.CRORE ( 0/0) RS.CRORE RS.CRORE
~6-02-O4 102.99
17-02-04: 110.60
18-02-04
19-02-04
20-02-04
21-02-04
22-02-04
23-02-04
24-02-04
25-02-04
26-02-04
27-02-04
28-02-04
29/0204
16.65
'16.65
72.48
66.79
7.09
7.09
0.98
0.98
22.23
29.03
0.04
0.04
No transactions
5.65% PA SBPATIALA QLYCOMP FD FOR 364 DAYSMATUR.1510212005
102.99
5.7500 50.00 17-02-04
6.25% KRCL BONDS 2014 6.2500 50.00 17-02-04TOTAL 100.00
HOLlOAY:MAHASHIVARATRI
: r\10"f)
10.60
16.65
16.65
4.2500 50.00 20-02-04
4.2500 50.00 21-02-04
4.2500 12.00 21-02-04TOTAl 62.00
.. -- .,
22.48
4.79
No transactions
4.25% PA SBI FD FOR 7DAYS MATUR.27!02l04
4.25% PA SBI FD FOR 12DAYS.MATUR.04!03/2004
.4.25% PA SBI FD FOR 11DAYS MATUR. 03/03/2004
SUNDAY
5.75% PA SBPATIALA QLYCaMP FD FOR 364 DAYSMATUR.21!02l2005
STRIKE
No transactions
No transactions
4.25% Ql Y COM SBI FDFOR 15 DAY MAT.13/03/04
7.09
5.8700 1.00 23-02"()4 0.09 ,0.98
0.98
22.23
4.2500 75.00
4.25% Ql Y COM S81 FDFOR 17 DAYS MAT. 15103/04 4.2500 41.00
TOTAL 116.00
No transactions
SUNDAY
-86.97
0.04
0.04
Average Idle Funds for the period 16/02/2004 to 29/02/2004=Rs.14.68 Crore
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9; EPF ACCOUNT NO.11IDLE FUNDS STATEMENT FOR THE PERIOD 16.02.04 TO 29.02.04
0.. DATE OPENING INVESTMENTS MA()E YTM AMOUNlVALUE CLOSING.BALANCE - DATE BALANCE
n. (Rs.CR.) ( % ) (Rs. CR.) (Rs. CR.)
16-02-04 137.27 10.25% G.S. 2021 6.1100 43.80 16-02-04n
10.18% G.s.2026 6.1500 15.32 16-02-04
n. 10.18%G.S2021 6.1500 15.31 16-02-04
n 10.03"A.G.S. 2019 6.0800 13.95 16-02-04
0r-·
7.95% G.S. 2032 6.1900 31,.80 16-02-04
0 6.90% UNION BANK BOf.•0S2010 6.1500 5.17 17-02-04
0 6.70% CANARA BK BONOS 2010 6.1000 16.36 17'-02-04 -4.44TOTAL 141.71
C 17-02-04 40.25 10.25% G.S.2021 6.1300 7.28 17-02-04!
CJ 10.25% G.S. 2021 6.1300 7.29 17-02-04
C 5..75%PAQLYCOMP UC08KFO FOR 3640 MATUR.15102105 5.8500 SO.OO 17-02-04 -24.32
C TOTAL 64.57
C18-02-04 108.13 HOLIDAY: MAHASHIVARATRI 108.31
19-02-04 108.13 No transactions 108.31C
20-02-04 181.88 5.75% PA QLY COMP UCO BK 5.8500 37.00 20-02-04
C . FOFOR 3640 MATUR.18102/05 144.88
( 21-02-04 204.52 5.85% MP SOL 2015(11SERIES) 5.8500 100.00 21-02-04MATURITY 21102/15
,
,. f~ 5.85% MP SDl2015, MATURITY 5.8500 20.85 21-02-0421-02-15
(5.85% ORISSA SOL 2015 5.8500 100.00 21-02-04
( MATURITY 21/02115
l5.85%PUNJA8 SOL 2015 5.8500 17.29 21-02-04MATURITY 21102115
5.85% BIHAR SOL 2015 5.8500 13.68 21-02-04MATURITY
";4.25% QLY COM SBI FO FOR 7 4.2500 SO.OO 21-02-04DAYS MATURING 28102/04
4.25% QLY COM SBI FOFOR9 4.2500 50.00 21-02-04DAYS MATURING 01/03104
4.25% QLY COM SBI FDFOR 4.2500 30.00 21-02-0411 DAYS MATURING 03103104
total 381.82 -177.30
22-02-04 3.30 SUNDAY 3.30"
23-02-04 3.30 5.75% QLY COM SBP FD FOR_ ....5.8loo 1'1.00.--2392 94,-·- .q-:!fr'364 DAYS'MATUR/NG 21102/05
24-02-04 0.57 STRIKE b1- 0.57
25-02-04 0.57 No transactions 0.'1'
28-02-04
29-02-04
18.39 4.25% Ol Y COMSBI FD FOR 12DAYS-~TURING 09/03/0~r-- --
4.25% Ol Y COMSBI FD FOR 13DAYS MATURING 10/03104
total
5.73 4.25% Ol Y COM S81 FD FOR 17DAYS MATURING 15103/04
0.14 No transactions
0.14 SUNDAY
ccC:
4.2500 50.00 26-02-04---------------------0
4.2500 50.00 26-02-04 c:100.00 -21.61 C
4.2500 52.50 27-02-04 -46.77(
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Average Idle Funds for the period 16/0212004 to 29/0212004=Rs.26.15 Crore
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() DA'fE OPENING INVESTMENTS YTM AMOUNl VALlJE"- CLOSINGf ...••.
BALANCE MADE DATE BALANCE0- (Rs. CR.) % (RS. CR.) (RS. CR.)
n(") 16-02-04· 1:02 Not~ctions 1.02
('\ 17-02-04 1.07 No transactions 1.07
C! (i/> 18-02-04 1.79 HOLlD,A.Y (MAHASHIVRA TRI) 1.79:
(I 19-02-04 1.79 No transactions 1.79
(' 20-02-04 5.48 No transactions 5.48.(', 21-02-04 7.40 4.25% QLY COM S81 FD 4.2500; 8.00 21-02-04 -0.60
FOR 1,DAYS MAT 03103104(1
22-02-04 0.17 SUNDAY 0.17C·
23-02-04 0.17 No transactions 0.17C
C24-02-04 0.17 STRIKE 0.17
C25-02-04 0.45 No transactions 0.45
C264>2-04 1.78 No transactions 1.78
( 27-02-04 2.61 4.25% QLYCOM S81 FD 4.2500 3.00 27-02-04 -0.39FOR 1TDAYS MAT 15103104
1 '. 28-02-04 0.92 No transactions 0.92
29-02-04 0.92 SUNDAY 0.92
Average Idle Funds for the period 16/0212002 to 29102/2004=Rs 1.12 Crore
<'f .. '•
.. .- SB! PMS PAGE a1. A l') Y)e)QWLe. • b,'-.l.-~.16.tai it.: ••• -lii'. 12t-f~-I21.~ De-pal••.••rtm••••••~.nt,Corpondle Ctlntre,PMt Box No. 12, •••••••..••• 021.._/Fu:-2204 S4&1/220217ft 12218 .2201IR/T4IIetram : APEX
2818746
. 'Iltift... • ~.State Bank of India
ITHE REGIONAL PROVIDENT FUND COMMISSIONER (INVST)EMPLOYEES PROVIDENT FUND ORGANISATIONBHAVISHYA NlDm BHAVAN? 14, BHlKAn CAMA PLACE,NEW DELHI -110066
L_. ~/Na. 22.03.2004TrJPMSI
Dear Sir,
IDLE FUNDS STATEMENTS FOR THE PERIOD:(1) 01.03.2004 TO 15.03.2004
We forward herewith theabovementieaed statement for your kindinformation. The average idle funds for the period were Rs. 35.01 crore. Theposition of the idle funds has been somewhat -distorted by the fact that wehad to accumulate funds from 09/0312004 onwards for investing Rs. 500.00crore on 12103/2004 in the primary issue of 6.10 % Nuclear Power ~Corporation Bonds. \
Yours faithfully,
f~(PMS & CS)
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62/61/2001 08:61 2818746 581 PMSPAG:. 92
4.2500 52.00 01I03I04-5.69
01/03104 46.314.25% QLy COM $81 FO FOR8 DAYS MAT. 09103104
HOlIDAY (MOHARRAM)
425""'OlY COM SBl FD FOR 4.25009 DAYS MAT. 12103104
50.00 03I03I04
5.1502103104 5.15
5.15
04103104 1.85 4.25% QLY COMS91FD FOR 4.2500 59.00 04103,'041DAYS MAT. 11103104 .57AS05103104 0.40 5.15% QLY COM CANARA BI( 5.8500 125.00 05103104FD FOR 364 DAYS MAT. -124.60
ON 04103105
0GI03I04 0.39 5.75% OL Y COM UCO BANK 5.8500 8.00 06103104FO FOR364 DAYS MAT. -7.61ON 05103105 •
071Q3I04 nilSUNDAY
0&'03/64nil
4.11 425% Ol Y COM sa. FDFOR 15 DAYS MAT 23103104
4.2500 64.00 08I03/(U -59.89
09103104 0.97 NO TRANSACTIONS 0.97
10103104 73.40 6.68% PGC BONO 201 1 10.37 t 1103104MAT. ON 23102111
FUNDS TR'D TO MUMBN 15.00 10103104MAlNBRANCH
25.37 48.03
11/03104 48.37 NO TRANSACTIONS 4837
12103104 168.33 6.10% NUCLEAR POWER 160.00 12103104CORP(NPCIL) BONDS 2014
5.75% QLY COM CANAAA 75.00 12103,'048K FD FOR 364 DAYS MAT.ON 1110312005
7.70% NHPC BONDS 2012 5.75 15/03/04MATU.l1103I12
240.15 -7242
t3/03l04 12.05 NO TRANSACTIONS 1205
14103104 12.05 SUNDAY 12.05l
-" .----.,--~----..88.24.. 1SlOJlQ4..-.-~ .. . ·Ne ~RANSACTIONS
Average Jdle FundS fOf the period 01/03/2004 to 15103I2004=Rs 14.32 ClOre
, ,. ~ 62/611281'1 88:01 2818746 sar H<b,., r... ~
f" r•..,
E~ ACCOUtaNO Ur:,
IDLE FUNDS STATEMENT FOR THE pERIOD 01.03.04 TO 15:03:04 r-DATE OPENING INVESTMENTS MADE YTM AMOUNlVALUE ,CLOSING
BALANCE DATE BAlANCE
(Rs.CR.' ( % )(Rs. CR.) (Rs.CR.) r01I03I04 72.08 4.25% Ql Y COM sal FD FOR 4.2500 100.00 01I03I04 ('
1DAYS MATU.08I03I04
4.25% Ql Y COM sal FD FOR 4.2500 48.00 01~c:
8 DAYS MAT. 09I03I04 e- C148.00 -75.92
02/03104 8.87 HOlIDAY C MOHARRAM) 8.87 C03JO~ 8.87 4.25% QlY COM sal FD FOR 4.2500 100.00 03103104 C
8 DAYS MAT 11103104
4.25% QLY COM SBI Fe FOR .••.2500 25.00 03I03I04 G9 DAYS MAT. 12l03l2004
125.00 -116.13 (
04/03104 0.73 4.25% QL Y COM sal FD FOR 4.2500 20.00 Q.W3I04 -1927 C7 DAYS MAT 11I03I04
05103104 0.15 5.75% QLY COM CANARA BK. 5.8500 25.00 05103104 -24.85 CFD FOR 364 DAYS MAT. 04I03I05 r
06103104 2.05 5.75% Ql Y COM UCO-SAK. FD 5.8500 42.00 06103104 -39.95FOR 364 DAYS MAT. 05103105 C
07/03104 6.53 SUNDAY 6.53 (08103104 6.53 4.25% QlYCOMS8I FD FOR 14 4.2500 100.00 08J03J04
DAYS MATU.22I03I04 (
4.25% 'Ql Y COM sal FD FOR 15 4.2500 60.00 08103104 A. (\...
DAYS MATU. 23I03I04160.00 -153.47
09103104 0.70 NO TRANSACTioNs 0.70(
10103104 107.81 NO TRANSACTIONS 107.81
11/03104 194.55 7.70% NHPC BONDS 2011 22.86 12103104(,
G.68%PGC BONOS 2011 5.18 12103104
G.G8%PGC BONDS 2012 5.19 12103/04 l8.63% PGC BONDS 2011 12.02 12103104 (
7.70% NHPC BONOS 2011 5.71 12103/04 {-.7.70%NHPC BONDS 2011 11.43 12103104
(7.70% NHPC BONOS 2011 2.28 12I03I04
7.70% NHPC BONOS 2012 5.74 12103104 ~
7.70% NHPC BONDS 2012 11.49 12103104 1... -(
----,-------------------,--,-----,.,-._-- -.~-, ~ 81.90 "". -~ 11~.65
12103104 345.49 6.10% NUCLEAR POWER CORP. 340.00 12103104OF INDIA (NPCll) aONDS 2014
5.75% Ql Y COM CANARABK 75.00 12103104 (,
FO FOR 364 DAYS MAT 11I03I05
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13/03104
14I03I04
15103/04
2818746
4.31
4.31
10.70
NO TRANSACTIONS
SUNDAY
NO TRANSACTIONS
SBI PMS
415.00
Average Idle FundS for the period 01103/2004 to 1510312OO4--RS 17.05Crore
PNaE. Et4
-69.51
4.31
4.31
10.10
rn 02/61/2601 08:01 2818746 SBI PHS PfI2£ 05 r~,' r:
-"-~--'-'-"-I:PFACCQUHINO-2$,--.,- -~~--.~-.-- r>----.~,-.~.. -. ~.. ~.~- .. ~,-~
IDLE FUNDS STATEMENT FOR THE PERIOD 01.03.OC TO 15.03.04DATE OPENING INVESTMENTS YTM AMOUNT VALUE CLOSING r:
BALANCt; MADt:"' DATE BALANCECR•• CR.) % (RS. CR.) eRS. CR.)
C01103104 1.75 NO TRANSACTIOOS 1.15
r02103104 1.75 HOllOAY(MOHARRAM) 1.7& r-:
I r03103104 2.52 4.25% QLY COM SBI FO 4.2500 10.00 03103104 ·1.48FOR 9 DAYS MAT. 12I03I04
(04103104 1.15 4.25% Ql Y COM S8I FD FOR 4.2500 2.00 04103/04 -0.85
1DAYS MAT. 11/03104 (
05/03104 0.18 NO TRANSACTIONS 0.18
06/03104 0.68 NO TRANSACTIONS 0.68(
07103104 0.68 SUNDAY 0.68(-
08103104 0.91 4.25% OLY COM S8. FD FOR 4.2500 2.00 oiJIo3/04 -1.09
09103104 0.37 NO TRANSACTIONS 0.37(
10/03104 0.48 NO TRANSACTIONS 0.43 (
11103104 0.56 NO TRANSACTlONS 0.56 C12103104 5.89 NO TRANSACTIONS 5.89 (
13103104 20.78 NO TRANSACTIONS 20.78 (14103104 20.78 SUNDAY 20.78 .< (15I03I04 21.53 6.68% PGC BONOS 2011 6.1555 5.16 16103/04
6.68% PGC BONOS 2012 6.1549 5.18 16103104
6.68% PGC BONOS 2013 6.1561 5.19 16103104
6.68% PGC BONOS 2014 6.1556 5.21 16103104
TOTAL 20.74 0.79
Average Idle Funds for the period 01/0312004 to 15103I2OO4=Rs3.64 Crore (
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•• '""", ••• 'Q. •••.~ S. 12"-~"1. -T.......,~CoIpoI.~.'Oft lox Mo. '2.IIum ••••-fOO021."'/F_: 2204 sta/2a02111t 1221& 822G1If(/T~1tI : AJltEX
I ,THE REGION~ PR.OVlDENT FUND COMMlSSIO.NER (.INVST)EMPLOYEES PR.OV1J)ENT FUND ORGANlSAnONBHA VlSIIY A NIDWBBA VAN, 14,.8HIKAJ1 CAMA PLACE,NEW DELm -1l00Ci6 .
State Bank of India
L~. lli'lriwrlNo. Trl PMSI
Dear Sir,~ I Date; 01.04.2004
IDLE FUNDS STATEMENTS [OR THE PElQOD:16.03.2004 TQ ~1.03.2004
We forward herewith the abovementioned $tatCJXJeQt-iEwyour kindinfQrwatiotl., netlve~tdtefimiS.rortb.c:..peried were lts.~12.38crete.
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Pf¥:£ 82
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13.66
5.7ft QLYCOMAUAH.8tc 5.8S00 32.80 20103.'b4FD FOR 3640 MAT 19J03.f05
lUG -14.48NmM NIl $UHQAY HI..
".. 21J03.OC 1.76 5.7SS ClLYCOMAUAH. BK 5.8500 26.00 .22I03I04 -2424FO FOR 3840 MAT 21~
..•.,,;,'-~.--'-'~"-">'0,
23103104 "~",.,-",, ... ~~.~ .._io-,
1M So_ QI;'UX)M,UCOIW« 5.8500 65.SO 23I03I04 -63.56FO FOR 3640 MAT. 22mI05'
24103104 23.44 5.7R ClLY COMSBP FD 5.8500 142.40 24J0311MFOR 384-DAYSMAT. 23IOM)5
U$% QLYCOM UCO BNK. 5.8500 40.00 24I03I04FD FOR 364 CAYS MAT.23A)3I05
112.40 -158..96
2S'03/().( 1.06 5.75% QLY COMUCO 8K.FD 5.8500 2O.0025m04 -18.94roR. 364 DAYS MAT. 2413105
26I03I04 12.06 5.751(. Ql..Y COM UCO BANK 5.8500 40.00 26I03I04 -27.04FO FOR 364 OAYS MAT.2503105
27I03I04 0;81 NO TfWoISACTlONS 0.81
28m3104 0.81 SUNOAY 0.81
29I03I04 22.97 NO TRANSACTIONS 22.97
30I03I04 22.97 HOLIOAY(RAMNA~) 22.97
31103104 21.50 5.10'1(, AUAH.BNK. FO FOR 5.1000 12.00 31I03I0461DAYSMATR31105104
5.10% Al..I.AH.BNK. FO FOR 6.1000 27.00 31103/0475 DAYS MAT. 1~
~~ 39.00 -11.50
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5_75YtQl..Y-COM UCO fW«. FD~OAYS aMT22J03.t05
.5.,", Cl.YCOM ~FO FOR3I4DA'V8~
..5.7$% QI.YL COM AU.Nf •..~FD~*DAVS UAT.23I03I05
~ 0_08 5.7S1ro0l VCOMSOP fI) FOR364 DAYS MAru. 2~
5~Q. YCOM Al..lNf,8tf t<.FO'FOR 46 DAYS M~T_ 11J0612Oo4
5.25% QLY COM AUAH.8NK FOFOR 75 DAYS ••••••T. 06I06I04
26I03I04 29.19
27103104 -4.57
28I03I04 4.57
29I03I04 35.-43
301031().( 35.043
31103/0( 44.89
NO TRANSACTIONS
SUNDAY
NO TfWfSACTlONS
HOt.IOAy(RAMNAVMJ)
-5;10%-AUAJ.C.BNK.FD FOR 61OAYSMAfURING 31f0512OO.4
5.10% AUAH.BNK.FD FOR 47OAYSMAT-URING 17J05.104
PAt:£. 03
-.-;. ..
1.73
-17.445·1500 33..00 f~
S-8500 127.80 2OJo3Au
18.:11
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5.8SOO 9.80 ~5__
150.00 2.w3I04
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5.2500 50:00 2Q,\)3,'04
6~ 20.00 2W3104
70.00
·131.30
-40.81
4.57
4.57
35.43
35.43
5.1000 33.00 31/03104
5.1000 50.00 31I03I04
-43.11
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.7.82,
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8.596.75" Q(.y COMAUAH..8KFOR 3640 MAT. 1W03105 10.80
21~' HH. SUNDAy
22m3I04 0.22 NO TRANsAcTIONS
~ 2.25 5.1~ QlY COM UCO·BANt( 5.8500fD FQR3&40MAT.~
2~ O.~ NO 1AANSAC11OHS
"~ 0.64 'Nb~'
260403104 ).73 5.2$% OLY. COM Al.l.A.UNK ft) 5.2600FOR 1&DAYS PMT. MSI04
27I03I04 0.18 NO TRANSACT10NS
281O:J104 0.18 SUNDAY
29I03IG4 2.23 NO TRANSMmONS
30I03I04 2~ HOLIOAY{RAMNAVMt)
31103J04 2.~ NO TRANSIIo¢TfONS
NIL
0.22
4.00 ~ -1.75
0.350;04-
5.00 26I03I04 -1.27
0.18
0.18
2.23
2.23
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EMPLOYEES' PROVIDENT FUND ORGANISATIONCORPORATE OfFICE
NEW DELHI.
Central Board of Trustees, Employees' Provident Fund decided In Its
162nd meeting held on 03.12.2003' as under:
"It was resolved that the Chairman of the Central BOard of Trustees,
(EPF) assisted by one representative each of employers and employees and
the Central Provident Fund Cohlmissioner may negotiate with the top
management of IFCI towards finalizing the outstanding issues. The Board
further resofved that the Chairman may select the members of the Board to
assist him."
Accordingly, ',the Chairman, CST, EPF vide order dated 09.01.2004
conStituted following·Committee for negotiations with IFCI:
Hon~bJeLMand Chairman, CST.
Shri 8aleshwar Rai; Addl.Secretary
i. Chairman
MemberIi.
& Chairman-Finance& Investment Committee
Shri Hasubhai Cave, Member- CSTiii. Member
Shri J.P. Chowdhary, Member- CBTIv. Member
v. Shri Ajai Singh, CPFC Membe
2. The meeting of the Committee was held at 3.30 P.M. on 23-02-2004
in the Committee Room, tst Floor, ShramShakti Bhawan, New Delhi for
negotiation & finalisation of the outstanding issueswith the IFCI.
3. The issues mentioned in the Agenda item were discussed one by one
and final decision was taken in .each case. On charging of interest for the
-delayed oenod, it was decided that after the cut off date i.e. 01-04-2003
.overdue interest would not be charged if the outstanding amounts were paid,- --.-- -.-~.--.-'-'¥~
._-- within is 0ays. Afft!r the meeting, fFe! was contending mat overdUe interesC· .-
for the period from November, 2001 to March, 2003, amounting to Rs. 14
cror.es aoorcx. was also waived by the Committee. The minutes of the
meeting recorded at item No. ii© in paragraph 3 clearly stipulates that
overdue interest for the delayed period will not be charged after the cut off
dat~ i.e. Ist April, 2003, if IFCIpays the outstanding interest within 15 days of
"
Page No.
File No. ---
formal communication of the decision. This is also In tune with the decision of
the CBT, EPFin its 162nd meeting held on 27-06-2003.
4. Draft Minutes of the meeting areenctosed for kind perusal andapproval.
··l;Ii~~CENTRAL' PROVIDENT FUND COMMISSIONER
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Addl. Secretary (Ll It Chairman. Finance I. InYesbnent Committee 7:lY ( ,. . - ...
Chairman, CBT,EPF It labour MinisterU.O. No. llivst.I/2(16)IFCl/2001/Vol.I/ 0 Dated: 24.02.2004.
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Draft Minutes of the Sub-Committee meeting of COT, EPFheld' on 23.02.2004 forrestructuring of debts payable by IFCI
Present:
Dr. Sahib Singh, Union Labour Ministerii. Shri BaJeshwar Rai, Addl.Secretary .
& Chairman-Finance & Investment Committee
Shri Hasubhai Dave, Member- CBT
Shri J.P.Chowdhary, Member- CBT
Shri Ajai Singh, CPFC
Chairman, CBT
Member
iii.
iv.Member
Member
Member
Executive Director & CEO IFCr
v.vi. Shri M.V. Muthu
vii. Shri R.M. Malia
viiii Shri A.K. Choudhary
Executive Director, IFCI
Generaf Manager(Debt. Services), IFCI
Shri Anirudh Rai, FA & CAO.And Shri eM Pilla!,.·DGM, State Bank of India also
attended the meeting.
2. At the outset the Chairman welcomed all committee members, executtves from IFCI
and other officials f(om EPFO/SBI. Thereafter .tne comm1ttee negotiated with the IFCI
offICials to finaHse the outstanding tssues.
3. In continuation to the decision of Central Board of Trustees, Employees' Provident
Fund regarding approval of terms and conditions for restructuring of the debts payable by
IFCI. in its 162"d meeting on 27.06.2003 & IFCI's request for reconSideration vide letter
dated 8.8.2003, the committee negotiated with the IFCI and consensus emerged to
finalise the outstanding issues as under:
CBT's Decision f IFCI's Response Decision taken/clarification on the issuesdated , vide letter that emerged in the meeting
I"27.06.2003
,dated 8,,8.2003,
i. Principal of I;' Acceptable to (a) The redemption of one-fourth of the total Iexisting Non-SLR i lfCI. restructured debt may be fixed in each of the 4/Bonds amounting consecutive quarters of the financial year startingRs. 1006.85 from 1st April, 2013 to 31st March, 2014 in linecrores may be, with changes in interest due date(s) agreed by
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,- /-rre;';s;tru;:;-;;:ct:;'u:::r::e~dl.w:::~iti:lh--~-----'-CB=:r=,-E=P==F:-:-::(C=la-u-s-e-4":':)-.--:::Th~i~s-i-s-,.,-eq-u-;-re-d-'':''to-a-VO-id-(')shifting of maturityof morethanRs.1000Croreson a single ('maturity dates by date. ACcordinglyrestructureddebt will mature10 years from as under;2003-04.
iii. Board iii. IFCI hasapproved the requested torestructurlnq of reconsider theinvestments by decision andEPFOin Non-SLR agree toBonds resetting the rateaggregatingRs. of interest at 9%
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ii. IFCI beadvised to meettheir obligationsup to 31.03.2003at the contractedrate of interest asprovided in therespectivesecunnes,Overdue interestup to 31.03.2003wHl be calculatedat contracted rateand thereafter atthe rate resethereinafter. IFCIshould clear itsinterest dues upto 31.03.2003payable to CST,EPFbefore formalcommunicationabout acceptanceof roll overproposal.
Rs. 250 crores each on 20/4/2013, 20/7/2013and 20/10/2013 and balance amount on20/1/2014. (:/ C
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(b) In case of acceptancesof accumulationsinvestedin IFCIby the exempted.Trusts, after thecancellationof their exemptions(i.e. Investmentbeyond.Rs.l006.85 crores of CBt;EPFin IFCI},the CBT,EPFwill acceptpre- paymentsby IFCl.
a) Cut-off date of restructuring will be 1st ! CApril, 2003 as dedded byCBT, EPF.
Cii. IFCI Is ready tomeet theirobligations up . to31.03.2002 at thecontracted rate ofinterest as providedin the respectivesecurities asagaUlst .upto3;1:.J, .•2003 decided byCST, EPF. IFO hasalso expressed' itsi'nability to payoverdue interest atcontracted rate upto 31-3-2003 asdecided by CST,EPF.
b) In caseswhere principal amount has fallendue for redemption before 31-3-2003, interestat contracted rate to be paid up to the date ofredemption and thereafter it will carry interestat reset rate.
c) Interest for the delayed period will becompounded annually at the end of thefinandal year at reset rate. Waiver of intereston interest for delayed period as requested byIFO will be effective from the date ot!-restructuring viz. 1st April, 2003 if IFCI paysthe outstanding interest within 15 days offormal communication of the decision.
The reset rate of interest will be 9.25% orrate of interest declared/paid by C6T,EPFunder para 60(1) of EPFSchemewhichever ishigher
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~~k~resetting ther-: I rate of interest @
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Acceptable to Decision of eST, EPFis .acceptabiii.t.oIECI.-andno further darificatlon is required-
01.04.2002. orthe rate ofinterest declaredunder Para 60C1)of EPF Scheme,whichever ishigher instead of10% p.a. w.e.f.01.04.2003.
iv. Acceptable toIFCI.
iv. Interest. due dates will bereset at 20th April,20th July, zo=October and 20thJanuary for oneforth of theamount i.e.Rs.1006.85 croresfor which roll overis sought.
v. In case of v.any default for rrcr,more than 3months by IFCI inservicing ofinterest! principalafter restructuringof debts, IFeI witlbe liable forpaying penafinterest @2%over and abovereset rate ofinterest andoverdue interestof reset rate forfirst three monthsof default. PenalInterest will becomputed on theamount of defaultin servicmq ofinterest! principal.
Interest accrued but not due up to 31.3.2003 willbe paid upfront and thereafter interest will becomedue as under:a} On Rs. 250 crores of restructured debt on20th April.b) On Rs. 250 crores of restructured debt on20th July.c) On Rs. 250 crores of restructured debt on20th October.. '.d) On Balance Principal of restructured debton 20th January. .
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option after 5years from thepresent date ofmaturity (beforerollover) of eachscrip. Put optioncan be exercisedonce in a financialyear for selectedscrips as peroption of CST, EPFafter giving 3months notice inadvance.
(NO decision wastaken)
vii. IFCl will vii.furnish its IFCI.quarterly financialstatement ofaccounts regularlyto EPFO. IFCI willalSO'furnfsh otherinformationrequired byportfoliomanagers of EPFOfrom time totime.
Acceptableto Decisionof CBT,EPFis acceptaole to IFCI andno further clarification is required.
AU formalities in respect of restructuring ofdebts be completed within one month fromthe date of formal communication of thedecisionto IFCI
viii. Timecompletionformalities.
for Nocommentsof
4. The Committee unanimously decided that the above decisions/clarifications were
final and need not be placed before the CBT,EPFagain.'-
5. The meeting endedwith thanks to the Chair.
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Status Note on Proposed Fund Management I j,
.' ,;",: 0;." - ~::fi',~.- ,Introduction; To study the fund management in the E.PF.oi ·datafO'''''2months offund flow in ClIfthe 108 offjces'wa~ calted""for during JuIy(2002 •..; ';'O;al:a'! Qf about 70offices was 'received aod a study was conducted for. ~Viirg 'at: _'fCOSt i>EmefitanalySis. However, it was felt that data from aUthi:fofficeW-s&our•• r;iJntudiedandtherefore a new~dy was undertaken.by catling ~ dat4Moolal~a. offig!Sfor3 .months ·cnfftiig'~/2OO2'.""· 'O'atiifi"ortf 'IOU 0f'ffCeS- MiS ~~t:rISt't1t!lTefitenalvsts been arriVed'dulfng 11/2003. The follOWing.brfd'if'1elq)lain~' ~ng andthe proposedfund·management.'; " fht'> ~,~1"": . ' on' ;.,
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ExistinqFynd Manii!qs:meot : EPFOrganisatiOnis' haViii~1'08fie@*Sfflces knownas Regional Offlces{RO) a,ndSub-RegionalOfflces (SR()fat',presenf,thrda9houtthecountry exceptJ&K. At eachof thesestations,aGCOunts-havebeern"~Bed with theState Bank of India' (SBI)for receiving EPFdues from the e$ablishrraents<overedunder the EPF&MPAet,t95~ which are known as./.JnkBrctnches.'Jfi:C)nl:tbe'sameaccounts, chequesarelssued for paymentofPF.W thebenefidari~~UlJe ROs/SROsafter meeting their.tequken\ents Bc:Mce respective'inkl'biimch u£S~~'~r thesurplus monies to respective investment accounts'at SBIit1aln'B~fMumbaiforinvestment.· rricaseorffiOSe~om-ces'wnere~'WCJmTert;~~·tmltr!S '~ttre1r'" "-" -.. -.~•.requisitions for grant of subsidy with justific:Cltiol'lto Head Gffice'.' :f16e':HeadOfficeafterscr:utinyof the requisitions advice the Main Branchof·'581 '-tea .In:Murnbaiand New Delhi to tran$fer the monies to the respective;Unk ~es'fromtheinvestment account. Itsometimeshappens that "theri!CfFe requiSitiOtisforsubsidY indif'feJl!nt acco~ bi"t.there are no [email protected]. Insuch a scenatio, the "SecurityServices Branch()f.s8Iwhomanagesf-El?f.in~ntsis ~uested to divert funds from either the interest eameidfrom; tbe'lnvestmE!Otsl1ladeor maturity of any security.
2. In this system, the-HeadOffice plays the most important role of'regUiating thefund availability. This Is a time consuming'exerd~ and the costs of telephone; faxetc. are involved. When funds are not available in the investment 'accounts, itcreates panic situation in the field offices due to the threat of che<fuesbeingdishonored. To prevent such Situations, the field offICeS resort to bfOCkingof hugefunds which would otherwiseearn interest on beingmvested.
Proposed Fund Management: In this at SBI Mumbai the EPFdues of all the6ffICeswill be centrally pooled,All 108link brancheswill transfer surplus funds to theSBI Main Branchat Mumbai after keeping a minimum balancedaily and in thoseoffices where there is shortage, link branchwill honour.alt.cheques.and.debltto theirSBI Main Bral'\ChMumbai. Therefore, there wi/tbetOS advioesreceived from 108field offices either debit adviceorcredit advice daily at SBIMaine-Branch,Mumbai. Itmay also happenthat on any particular date at SBIMum.baimain'branch there may
/
1'e shortage of funds due to receipt of more debit advices than of credit advices from~""t0 overcome this, EPFQmaytal<e " T~rmDepqsit of Rs. T57IOOrores with SBland avail Over D~ft limited a ainst this de sit so that as and when
instructtons for tranero n s to ,an field 0 Ice'Saccotmfarereceiv ensare t~nsfe-rfealffimediarety-rrom the available balanc:eapd if xeqoiPlcf ,bY' utilizing
~~i3g/~r~!~'~!~!=~'~=:==~~~=~~5~;:::nthe Term Deposit ~nd incur. interest @ 6.25% for avai1ingOYerDraftiim.lt.
2. In this system the expected benefit will be of utilizing the blocked funds/fundsin the pipeline fying·in theSBI branches th rc;>vghout theoolintrv'or investmentwhich will earn handsome returns. Also through this system, cost spent ontelephones, fax etc, tan be avoided and there will be no panjcsituationin the fieldoffices asthere will be no threat of cheques being, dishonqred. This will enable thefield offices to' concentrate on their main area of work i.e., .prompt settlement ofdaims. ThiS wUl also reduce the dependence on the Head Office for JlijQl.llatingfund.availabi.Ut:\L-."".....~~ '~._.---:-" .., ~__~,_. _.__..,~..__._..._ .. .
Present status oftbeSWdv: Data of three months from about lOOoffices in Me5 and Alc 10 was called for cilrriving at thecost-benefitanatysts. .The study iscomplete., This-new.:.S¥Stemwill require avery~.rong monitoring mei:hanism,as dayto day entries ( lOS) wiUhave to be recondt¢ at the end of the day. The modalitiesand cost of setting up this monitoring, mechanism are .being exantitlett •.AI,SO ,negativebalances are noticed in mest office's cash books despite which cheqUes are issuedand whereas 'bank balances show positive balance. This Issue' is also beingexamined. ' As the S81 will play a very cruclaI role in this system, it has to beensured that all its branches with EPF accounts throughout the Country areinterconnected for smooth fund flow. This will also require entering ii'i"t9new bankingagreement with S81. The feasibility of implementing the new fundmanagetnent intotality is being examined.
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T~sury Departmen~ Corporate Centre.PO$t-BoxNo. 12, Mumbal..coo 021.~/Fax: 2204546812202 8779/2286 8220WIt/Telegram: APEX
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State Bank of India
I Cen,bll SS". ~./The Regional Provident Fund Organisation (Investment).Employees Provident Fund Organisation,Bhavishya Nidhi Bhavan;14, Bhikaji Cama Place,t:Delhi ~10 066·
~ •••• , No.1 A.J ~111'€.17Dear Sir,
~'Date: ~O·I~. ~
.,
ACTION TAKEN REPORT ON AUDIT REPORT ON INVESTMENTPORTFOLIO OF EPFO
With reference to your letter no: Invest.ll1(741h)F&1 Meetingl2OO3"/17605 dated11.1~03 we advise that:
~ _'1,:}.--. (I.") Item No. 1. SPECIAL AUOIT REPORT FOR THE PERIOD 01-10-2000 TO
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Para/J)~e Remarks of EPFO SBtreplyP3 Even if the funds are Funds are being
Ibeing accumulated for aCcumulated to invest in l'investment in forthcoming a better yielding security. -.issues it is desirable that The suggestion ofthey are invested in T- parking funds in T-Bills isBills and not kept idle. beingavaned as andAs advised to the when tJle opPortunitiesPortfolio Manager time arise. However; atand again the option of present, the idle fundstemporarily parking the are being COntained atfunds in T-Bills (till a R~.5 to Rs.·10 crores andsuitable investment tile statements are beingopportunity becomes submitted to EPFO on aavailable) needs to be fortnightly basis.- exercised more -
vigorously.I
I The Portfolio Manager Our experience revealmay also explain the cost that it is better to hold onbenefit analyses on to the funds for one or
I investment of idle funds two days and invest in a
I better yielding securityrather than invest in a low,.yielding instrument andlock in for a longertenure .
. -_ ...-."., .•.--~-~ ... '-'-'--.--.- '-~""----- --,,-The Portfolio Managers Value Date is striking amay also explain the deal today for a futureconcept of "Value date" date and the settlement
I t of investments. takes place on that futureI , date.I
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SPECIAL AUDIT REPORT ON INVESTMENT PORTFOLIO OF EPFOFOR THE PERIOD FROM 01-04-2001 TO 31-03-2002
Page/para Remarks of EPFO SBI reply .10-16 1. The report on idle No comments
funds and reasons- thereof are regUlarty
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placed before theFinance andInvestmentCommittee, as per thedirections of thecommittee.
2. No comments on Value dating concept hasvalue dating on been explained above.Bonds.
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t-rf-400 021.Treasury Department, Corporate CentrePost Box No. 12, Mumbal-400 021.~/Fax: 2204 5468/2202 8779/22868220lm'/Telegram : APEX
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ttlH\t~~ 'K .IThe Financial Advisor Chief Accounts OffICer;Employees' Provident Fund Organisation, .Bhavishya Nidhi Bhavan,14, Bhikaiji Cama pJ8ce.~ DeIhl 110 066.
~. J51ri'iI'i I NO.
'.TrIPMSI~~~ 13-02-2004
Dear Shri Rai.
SCREEN BASED mADING - NSE
With reference to the above we fUmish our tentative views in tile matter. A moredetailed.exanUnatipnwould entail further4ime-an<fmay not be possible tocomplete within the date of the board meeting.
2. Thebondrnarket·trades takes place.on a daily basis and .has three majorcomponents,viz..arriv;ngat a decision on. investment-(pl,Jrchases}ldis~ (sare).price discx>Y9ryand trade settlement. Before wecommenton these aspects. we would like~ hiQhlight the fact that thehandicaps. that the change to screenbaSe<t'sy$femseeks to address. donot apply toEPFO investments. as SBt are fullY equipped with state of artdealing~acifities. Remediat~~~ that may be relevant tosmaUe,nlitjes-(e.g, •.C<rope~tiYe~ba.nks. prAVident fUnd$, BRBsetc)located. away from Mumbai may not confainany value adOition In respectof EPFO Investments. SubJect to this,ourpreliminaiy views on theproposed system are as under:.-."..~
<ltQA..V/ ' (i) Investment Decision:
\ Pl~...k This is the majOr ~rea of handicap,as select.ion of type of investment andtiming of the transaction are critical to the value of the investment
.~ '. decisiOn. 'The proposed screen based system has application only in the,\'1V. post decision taking stage. Thus this major area Where the smaller
entities stand to lose out on, mainly due to lack ot skills, would remainunaddressed. . .
1:;\\'" PricGDisco~crf
The extant system, in terms of which price discovery/final/satio,; issubstantially dependent on broker inputs, contains considerable scope forirrationally priced transactions. However,the screen based system couldremove this only if all, (or at least most) players are compelled under legal
. a e their . s. T' ranee th' .._~._. __'_'_quoted will be honoured, as there are no legal compulsions in the matter.Thus price rigging, to establish a particular desired level, cannot beeliminated and the present broker driven price determination process maynot undergo much improvement, if any, in terms of fairly priced deals.
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Also, the price for any security is a function of the buyer'slsetler's own intemal compulsions. For instance, in a scenario wherethe investors ifltefflat cash:flovlissiles "oecornf:r C(iltcal;a(f~'--- --- - --- ------investment/disinvestment may be made at prices that may not be really arepresentative of the market rates. It is"not practical to envisage asituation wh~re"across the board alt inveStorslplayers are uniformty placedin regard to such internal pressures. Also there are a large number ofilliquid scrips for which the pricing may not be disck>sed at all and adecision to buy or sell such scrips, would depend, on perceivedopportunities,
However, broadly speaking, a screen based system would certalntyrepresent Be QfeClterdegree of transparency in the price .dtsccvery process,in respect of entities which have-hitherto been functioning entirely onlimited inputs from a few brokerslintermediarieslfinancial consultants. It isalso a moot point as to whether brokers can be eliminated from theprocess even under a screen based system, as they playa marketing rolein establishing business ties between prospective buyers/sellers.
(iii) SETTLEMENT PROCESS
Although NS-Ereportedly have a T+t>settfementprocess, i.e.,simultaneous payme-nt and delivery of securities, it-is our understandingthat as offl()w;"seftlemenfs are oii'T+21ms1S.ThTS·ttoes~noroomparefavourably with the extant NDS setttement process where T+<> settlementtakes place, HbWevet,for entities not having access to NDS settlementprocess, for wanrof depository aCCO!Jnt${C3-secsor others) there may notbe any comparative disadvantage.
3. \' In this connection, a complete assessment cannot be made without,evaluating the costslexpensesJnvolvedin setting up a screen bas~\lsys1em,- The proposed benetectanes would be mainly smaller entities,with relativety small turnovers, and the savings effected by better pricingmayor may not be matched by the costs in putting in place the proposedsystem. We do not have any concrete data on the likely costs, and henceare unable to make a relative comparison.
4. In conclusion, we-would like to reiterate~that the SBI Treasury functionsare of a degree of efficiency that address all the three basicaspects(lnvestment decision, price discovery, and settlements) in the mostefficient and cost effective manner possibJeatpresent. We can consider a
:,"screen based process for EPFO only if a clearer idea is conveyed in: , terms of all the costs, that are likely to devolve.
YO~f~~----
eputy General Manager(PMS & CS)
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. EMPLOYEES' PROVIDENT FUND-ORGANISATION(Ministry of lzIbour, GoVt. of Indiz.) ,
Head OfficeShavishya Nidhi Bhawan, 14, Bh'kaij'j Cama Place,
New Oelhi-1100$G
No. tnvest.t/t (18)/96jPatternjVQI. VIII Datedr-
To
Smt. Chitra Ram Krishna,Deputy Managi ng Director,National StOCKExchange Of India Ltd.,Exchange Pfaza.,Bandra Kurla Complex,Bandra (fast) M~mbal-400(l5,Tel: 022: 26598201
19 MAR2004
Sub:- Screen Based Trading - National Stock Ex:change( NSE),
Sir,
Thj's ..bes ··referencet(J"'t~plesentafnn--'1Iade··-by V~')(' dOOdiscussions with the Member of Ffnance & Investment" CommitteeCBT,EPF on06-02-2{)04 regarding Screen Based Trading of Central.gove.rnment Securities on the National Stock fx.change.
2. At present, portfolio managers of CBT,EPF are using screenbased trading system of RBI populariy known as NegotiatedDealing Svstem(NDS). This office is !n the process ofpr~parinQ an assessment rep-ort on the costs /benefits Involvedin respect of the Screen Based Tradinq System for EPFO andother Provident funds. ~t will 1P. aoprecratec if you co-nefurn.sh :'actuoj informat:c..n on the fo;io~'jinq .aspects i-
{i) Costs ~t"'l()!\!ed tel becO·T:<~member Fi.precess tr:t~ri~O~.(Ii) (.'J::.t (:f 1.irc,kcrage on transacticns tl.rouqh NSE,'Iii) H0n(lJ'~nc cf )r!t:~e5 nv)t~(1.(iv) '::p.ttL?:.:n; .J:{)(e';s - -;- - n o~"L. ! 2nd ';ett:ern~(t ~~ste:--~,\ v) Detail.; .diX''J~ o.oer rr.atcrunq svsrernvof t~S[ aionq'tfllh
;ryn'0' e.lIcr'~(". ('11 pte:·ent orol<e,'jriverrl svs-ern of pr.ce':;delT;~.ildti0;-iand ei.n.ination of lJi.C<..! ri~glfi(j, (if any).
(Vi) A'lY nrer nrorr.1atlo!! consirterec re.evant.
RS:GIONAL p, F. COt:lf'·;ISSi
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Item No.3Item No.3 A
The details of fund inflow and investments made by S8r according tothe prescribed pattern as follows:-
PROVIDENT FUND INVESTMEfjTS
(01-04-2003 to 29-02-2004)
Fin. Year: 2003-2004
----------------Inflow --------------+-------------- Outflow ---------------Source Amount\Category 1Ilnount
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-,--- -- - - ----------+--.;..-----------"""1'---- ------ ------_ - --Opening BalanceFresh AccretionsMATURITIES
98,83,40804.13IINVESTMENTSMADE 12336,84,32236.74867,04,00000.001Central Govt. 2638,79,lZZ4S.09
5999,07,05942.001State Go~~/Guaranteed -Treasury Bills 14,36,24850.001State Develop. LoansOthers 5984,10,81092.001PSU/PSFIINTEREST 1537,58,00677.861Current AccountCentral Govt. 515,06,92850.101Treasury BillsState Govt./Guaranted 66,02,01319.16IAccruedInterestState Develop. Loans 342,94,44297.70ITransferto Main Br.PSU/PSFI 553,54,62210.90IS05Deposit
SDS Withdrawal IIncomeTax Deducted 39,81330.00Refund of Income Tax 6,25860.00IBANK CHARGES 120,54,29811.92Incentives 1,85,70104.001TransactionFees 40,04730.00
h' ~_ef~I.!(L0t~QJ.,·.,_~..,lA, 65, QOOOG.09 ~·~ct:nti\ 10,98"884.00Refund of Bank Charges 93940.001 Service Tax 5,68303.00Other recipts 4402,55,79450.711Misc. Charges 119,83,26197.92----------------------~-~-------------+--------------------------------------Total: 12917,66,16778.701 12917,66,16718.70--------------------------------------+--------------------------------------
INVESTMENT CORPUS- UNEXEMPTED SECTOR(All figures in Crores of Rupees)
2648,25,01961.657049,80,18020.00
46,31,52076.6414,30,63850.0050,19,891"10.40
349,00,00000.00
A PROVIDENT FUND INVESTMENTS
31.03.00 31.03.01 31.03.02 31.03.03 29.02.04
I Central Govt. 2747.01 3801.46 4374.12 4997.UO 6763.67Securities
2(a) State Govt. 1738.12 2068.86 2456.65 2964.32 5420.49
(bJ Govt. 627..40 847.79 730.46 626.49 534.81GuaranteedS~urities
,Special Deposit 38773.06 43145.65 47441.14 51851.28 51953.14.'.Scheme \
4 Public Sector 3820.46 4540.90 4986.07 4974.64 6877.96FinancialInstitutions
Total 47706.13 54404.66 59988.44 65413.73 71550.-0]""''<-
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Item No. 38 Review of Investment I n respect of·Pension Fund.
The details of fund inflow and investments made by SBI according tothe prescribed pattern as follows:-
.PENSION FUNDINVESTMEHT~
(01-04-2003 to 29-02-2004)
Fin.Ye~r:2003-2004----------------Inflow --------------+-------------- Outflow ------------~--Source AmountlCategory Amount-----------------~--------------------+-----------------------~--------------Opening Balance 248,25,90772.461INVESTMENTSMADE 7935,98,27307.66Fresh Accretions 2681,57,37000.001CentralGovt. 2623,37,.65740.70MATURITIES 2531,48,29580.001State Govt/GuaranteedTreasury Bills 57,45,20150.001State Develop. Loans 1066,34,39888.56Others 2474,03,09430.001PSU/PSFI 4186,92,60210.00
INTEREST 2460,48,46960.031CurrentAccount 72,08,75412.68Central Govt. 924,02,88480.251TreasuryBills 59,33,61468.40State Govt./Guaranted 51,60,44652.33IAccruedInterest 49,99,13374.75State Develop. Leans 390,71,10067.95ITransferto Main Br.PSU/PSFI 1094,14,03759.50ISDSDeposit
SDS Withdr.awal IIncomeTax Deducted 28,37589.00Refund of Income Tax 3,2·1563.00IBANK CHARGES 17,13,56774.00Incentives 2,74,95880.001Transaction.Fees 54,15793.00Refund of Apple Mcney 24,48,00000.001IncomeCollection 57,40981.00Refund of Bank Charges 3,71680.001ServiceTax 8,92544.00OtherreciFt:.~._ UA..i].J~..9;5.6A...£Q.", ~ .,,cauCjes- L6i~2;0'06'0'0';'cro..:.-:....zz:':': ....:::::-::::-----,-------------------~---~.+-------.---.,,....-----.~------------~---.;...------.;..Total: 8075,57,03002.091 8075,57,03002.09--------------------------------------+-------~----------------------~-------
INVESTMENT CORPUS- UNEXEMPTED SECTOR(All figures in Crores of Rupees)
B PENSION FUND .INVESTMENTS.As On -7 31.03.0 31.03.01 31.03.02 31.03.200 29.02.200
0 3 41. Central Government 3223.72 4753.45 6386~14 8231.50 9665.54
Securities
2(a} Stale Go\1. 1449.07 1887.68 2503.71 3475. 57 4426.61
(b) Gov'ernment 346.50 551.36 622.98 561.38 498.28Guaranteed Securuies
3. Special Deposit 1003.65 1117.09 1227.34 1339 ..36 1339.36Scheme
4 Public SectorFinancial 6226.84 7842.621 9290.26 10369.76 12825.86Insti tutions
·5 Public Account 15160.3 17064.19 19019.38 21067.64 21067.64.5
Total 27410.1 33216.39 39049.81 45045.21 49823.293 --- •........
---
Item No.4 C Re'!iew of Investment in respect of EDlI Fund.
.~=~~~~~n.· - ~ . -r-ne=deta-1fs=orffind mflow andmvesfmerifSumade by-58! -according tothe prescribed pattern as follows:-
EDLI .EUND IN.VESTMENTS(01-04-2003 to 29-O2-2004)
Fin. Year: 2003-2004---------------- Inflow --------------.--------------OUtflow ---------------/'ySource Ar.~untiCatsgory Amount-- -- -------- ------ -- --------------.-- - - T- ~--.----- -------- -- -------- -- ----- - ---
Opening Balance 9,77,66923.19!IHv::STMENTSMADE 244,94,46774.14Fresh Accretions -'.14,66,2100J.00;Ce:::tralGovt. 106,61,34526.00MATURITIES 54,51,OOOe-J. 00' State Govt!Guaran::eedTreasury Bills 1 Sta=e Develop. Loa~s 29,09,13948.~4Others 54,51,00000.001 PSU!PSFI 109,03,96300.~0INTEREST 69,47,564e7.71! cuz eenr Account 1,75,43134.96Central Govt. 25,83,31269.001 Tr:easuryBillsState Govt./Guaranted 1,27,25250.001 Acc=~ed InterestState Develop. Loans 11,16,41113.20\ Trar:sferto Main B.:::.PSU/PSFI 31,18,58855.511 SDS ::>epositSDS Withdrawal Incc~e Tax Deducte~Refund of Income Tax 3215~.00 BAN~ CHARGES
2,14,73980.94
IncentivesRefund of Appl. MoneyRefund of Bank ChargesOther recipts
7, 195E::.00
32156.0070,20176.003,57537.001,62639.00
41615.0065,OOOOO.ODas. S96~:.14
Tra~saction FeesInc~me CollectionSe=·:ice-TaxMis::.Charges
-TotSll: 249,55,57e37.:~1 L:49,55,57837.04
c.
INVESTMENT CORPU$- UNEXEMPTED SECTOR.(All figures in Crores of Rupees) -l.'
INSURANCEFUNDINVESDfE~lS - ~
(
rrr:rc('
c.rc:
c('
(
CC(
(
31.03.02 f 31.03.03~
As On--7 31.03.00 31.03.01 29.02.2004 (
1. Central Government 68.80 I 116.76 171.53 ! 224.04 288.73 (Securities
2( State GO\1. 33.2-1t 48.90 69.18 ! 107.98 134.34(
a) ! (,
Government 12.75 i 20.85 23.04 15.54 15.24 ! ((b) Guaranteed I I
I ,Securities , (I i
3. Special Deposit 1.85 2.08 2.29 i 2.50 L 2.501 (Scheme ;
!
4 Public Sector 143.85 197.20 257.841 316.16 383.761 "--Financial Institutions I
I Li~,---(
5 Public Account 2205.42 2397.161 2600.92 2822.00 2822:-00 !~
TOTAL 2465.88, 2782.96 3124.80 3485.22 3646.57 j;
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The corpus under different schemes was lying inv~~ed ..in the securitiesapproved-by the CentrarGovernmEmf asunder :-
As on -~ 31.03.00 31.03.01 31.03.02 31.03.2003 29.02.2004.~ - .. --....•• '._A~ ~-.~~ -~.•.,..,
i) Provident 47706.13 54404.66 59988.44 65413.73 71550.07Fund
Ii) Pension 27410.13 33216.39 39049.81 45045.21fund 49823.29
Iii) Employees' 2465.88 ~ 2782.9:6 3124.80 3485.22Deposit 3646.57
...•. ~ l!'l~eq... ;~ . !InsuranceScheme
Total 77582.14 90404.01 10~163.05 113944.16 125019.93
The break-up of investments in different .securities is as -under :-
- ,,'-
.1Ul29.77
Securities
31.03.02 31.03.2003 29.02.2004As on-~ 31.03.00
I~::~mentSecurities
10931.79 13452.548671.67 16717.946039.53i)
ifi) Sp«ial Deposlt 39778.$6 44264.82 48670.77 53l93.14 53295.00Scheme ofCentral Govt.
iv) Public Financial 10191.15 12580.72 14534.17 15657.56 20087.58In$titution
v} Publtc Account· 17365.77 19461.35 21620.301 23889.64 23889.64
Total 71582.14 90404.01 1'02163.05 I 113944.1'6 125019.93
.f
••
I
I ', ) .)
\.Details of Investments 01-11-2003 to 2,:-
Date I Cat I Coupon I Particulars ' I Interest due date I Maturity face Value I Rate ! Cost Price IAccrd.lnterest! c~~~:elYield: i .
03/11/2003 PSU 5.75 F.D.364 DAYS PNB - - 01111/2004 '120000000 100 12 00.00000.00 20000 5.85> • ~
04/11/2003 PSU 5.5 F.D.6 MONTHS SBP - - 04/05/2004 ; 10 00 00000. 100 1000,00000.00 20000 5.52t
05/11/2003 PSU 5.E·5 F.D.6 MONTHS SSS - - 05(05(2004 sa 09a0QQOO 100 280.,00000.00 20000 5.58.><
11/11/2003 PSU 5,8 PNS BONDS 2013 04-May - 04[0512013 50000000 100 500,00000.00 . 540273.97, 5.81 "
12/11/2003 PSU 5.S PNB BONDS 2013 04-May - 04i0512013 i 2,0000000 100.2022 20040440.00 219287.()6 5.77~
14/11/2003 PSU 5.8 PNB BONDS 201~ 04-Mav - 04/0512013 , 40000000 100 4 00 00000.00 451 287.67 ~ 5.81
1 18f11f2003 PSU 5.95 UBI BONDS 2013 03-Sep - 03/0512013 . 400 00000 100 4 00 00000.00 495,561.f)3 1200,0 5.94.19/11/2003 PSU . 8.8 PNB BONDS 2012 18..Jul ~ 18/0412012 10,00 OOOO~ 119.1118 ~ 119111800.00 2989589.04 : 5.86
20/11/2003 SDL 6.2 OJ SDL 2015 25-Feb 25-Aua 25/08'12015 i 6 Q.Q.QQ~OOO1ClO.986.5 601),91900.00 878333.a3 6.08SOL 6.2 OJ SDL 201!? 25-Feb .25-Al.ltl 2570812015 , 5,0000000 100.·9865 50*' 93250.00 7319440:.44 15000 6.08SOL 6.2 MP SOL 2015 . 25-Feb 25-Aud 25/0a12ll15 ; 50000000 1oo.9.8e5 5.OiU32S0. DO 731944.144 .' 15000 6.0aSOL 6.2 MH SDL2015 25-Feb 25-Al.ld 2510$12015 12600000' 100.9865 1,27,24299.00 184450.100 3780 6.08,
24/11/20'0'3 PSU 4.2 :F.D.14DAYS $BI - - 08/1212003 11l()O,oe 00000 100 100 00 00000.00 20000 4.225/11/2003 PSU .5 F.D.46 DAYS SBI - - 10/0112004 :10 0.0,000.00 100. 10 ap 00000.00 ~;63
.. _,. _c
- -:2-7-11-1f2O(}3. -pstJ 5;7 -a6'4 ~SFP S8 HYDR. - - 25/11:{. 0'04 0'0'0' 00000' 100 20 QO00000.00' '200'0.0 5.82!=tSU 5.85 POWER F=IN CO 8N 2010' O'1~Aua- 0-11081. 0'10' ; 5 0.0,0'00'.0'0' 100.0153 25.ao.382S0.O'C 47280'82)19 20000' 5.84PSU 5.8 PNB BONDS 20'13 04-Mav.- 04/05f,-~013 !5.QO.00900 98.5H .24,Q4.35000.00 . 3 336 986130' 20000 . e. \. I
0'3/121200'3 PSU 4.85· F.D.55 DAYS sal - - 2110112004 1iOSLOP oOQao '100. 1a5,aO' 0(1)0'00.00 4.85
08/12/20'03 PSU 5.5 F.D.6 MONTHS BO MAHA - - 08/0'612004 100',00' 00'00'0 10'0 1O'O.aO',O'O'OO'o.oO' 200'00 5.62:
09/12/20'0'3 PSU 535 F.D.6 MNT All A'OI"\ QI( - ImA,.,104 '.• 15 00' CODOO 100' 15,00,00'00'0'.00 , 5.37: I
10'/12/20'0'3 SOL 6.2 MH $DL2O'15. 25-Feb ~5-Aua 25/0812015 ' 6.28 00000 100.8168 63312950.40 1135633133 18840 6.1' .. , .
12/12/20'0 3 eTG . 1Ip.it) LOAN 20'26 11-Mar .11-$ep 11/09/2026 5 OD 00000 147 7,3500000.00 1286 638~89 1500'0 6.27eTG 10'.18 I~OAN 20'26 11-Mar 11-S@ ·.i 11/0'912025 500 00'000' 1.47 7350'00'00'.00' .>~1 286,638189 1500'0' 6.27
{,--.,. ...•. ,,
p (A No.05)Annexure:
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Annexure:~~'1, ")•.,J.:.' De,tailsof Investments 01"11"2003t~ ~9-0%-2004(Account No. OS )
.'
Face Value r RateOate I ci I Coupon 1 1 fntereat due date J M··;',rl+vl.•.dostPrtce
. 15000 .715000 6.27
OAA~" ~5t elo~1 6:1'5
200001 5.37
Particulars-
I4:2--------17 CAYS FOS.BI, SSBPSl i9712120J3T ~ on t\MM 1001 Q.OO.00000, 00,1-
1611212003
17/1212003 :i\I\J\Mnt' 143,510,25 ·[L.OAAl;:-202f .a.srilOooonn·30..fIN8v~4~D!OV
"19\nononnn 100..5.;3$ 1.FO 6 MONTHSSYNOIBK 1- 19~OO.OoOanhnl]~/~l2nc19/1212~PS( l-
5~35 IF.O,et;NT,sYNb).sK 1.. 8 "1 . ,.Joo.OOOOO --fOO20n2l20031 PSl '~nnnnnnnM 6.3.1J-.....
7.So.Moon 10(),1 '1I'.tn nni'lnn nn2'2/12120031 PSU [ 5:35 .. 1F,Oi6MNt~S'(NOI.BK 5.-37I.• l-. r-,3J,fhoo~o
I
1001 ~4!nn1ii'fnnnnl'24/1212003[pslll . 5.4. ·IF.O,,eK4NT..SYNOI,BK "11'AJ 5A2I~! II 1 I I ] I----:C::-
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5.27200001 5.27~
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-45]jO-~=~~'·30/12120031psUlI fi7 .IF,b,36~CAYS 1-
5,75 IF, 0, 180 DAYS'ANPHRAB31/1212003] PSO_'lO.'
5.755.62
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5;6 . ,,6 ONTHS e ."MAHA 1-~OO~P§O
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1001 111nbnnnnnn nno:11F,O:364 .OAys~S8~ 200 502l01/20Q4TPsU 1- -{oor- -200.10-,00000. 00~l'F,15~.~-tV10NTHS eo·.MA.HA ~OOOOipsul 0.1,nnnnn nn,5.eIF.O:6 Mo.NJ~~aOMAHA ~oCpsG' f00000.00
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01106~()04lr 1100,00,00000 1001 100.00.onnnn nn631()1/2004! ps(Jl' . $,55 ,jF.D.150DA't'SSBS '200001 5.551-1-
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betails of,l.nvestmentsOl-'11-2003 to ~~r02-2004 (Account No. OS )
", '1; } .)
,!
Anttexure:. . !
Date· -r Cat ,coupon] Particulars 1 Interest due date Matudty :IFace value_l Rate J Co.t Price IAccrd,lnter~~tr~~!~e100,QO;OO(f(JO.00
~LCIO~~QQ(),oO-:v
Yield'"
00/01/2004.1 PSU
5,6 1=.D,6 -MONTHS $8$
5,6 rF]YS-MNT.B(YMAH'ARAs ••PSU 5,(3 n=.D.364 pAYS lJNIQNB'K
5.81" (LOAN 20225,87~-tLOAN 2222 , I 28-F~5,87 LOAN 2'022
,03/07120041' rfO(toO.OOOOO 100
06/10120041' [1O.(U>.1>~000ol 1,001, ,00,QPLOOQOO.O()1 --~- L 20QlOr ,5.64, ··041011200m·nOQjOO,OOO~~. _1J>.il[_1QQLl.[o.OOO~.1>PL :~U ~:. t 200QOr--· 5.1
20000 5.6"
4.254.254.254.25--,rn-. '~
.2000l0 5.92000 " 5.$1I"200C 5.Q200( . 5;92QOC 5;9
I 200C S:Q2000 5.9~\,j 0,1
I 2000 i e.912000 5.
I 2000 5.20000 S:S;2000 5.2000 . 5.2000 5.2000() 5:9'2JLOO 5.S'2000 5.92QOO 5.9·2000 5.92000 ' .
~".9
I 28-F~1 2e--Augf 2.§lQaaoftl 12$0,00.000001 100.211 250'!~cJ509P.9-,00J5129,93056\00
12/01/2004\ PSU D 4~~2I_JEJJ.rOAYS§eC~se~-~-E-~---I,-r-------[-1WOln094IJ900-.oo.oOOOOr'-JoQl--gOo;oO,OOOQO.OOP$U [4.2$ IF.p.7PAY~-~!3I$se-. .F - u-I7 - , --- - r- f~QtI200!4LI"Q9JJ:~LOQOQ'Ql .. - ' 1pOr-e,oo,Qo,OOOOo:bo"PSU I 4.25, IF-.O.7.01Y~$al,,~~_·__-:J-_--_-~=~J:.-=-=~===:==__L=-Jjl011fOO~Ll~O.Q.@Jt~qO'OL -----1~200,Q9,QOOOO;OO
13/01120041 PSU
]fiSU I ,5.,,!S-]~-.J~:~§jl~.4.Y~FQNl~N]:r-nr:.-n-\--E------~T-11)~5.[T~:z;oO,Oo(joOr-----:1:00f '2,dO;OOO<>O.OQ
21&1/2004\ SOLSOLSOLSOLsOlSDLSOLSOLSOLSOL$otSOL,SOLsoiSOL
,'$1'..(SOLSOLSOLSOL~[SOL
5.6~ 364 -()A!ls]JN1P~T\fKI#1' .-
r- I I ,f I 'I ,28-FebT=28-AUgl'.?S108J20~211354,~eX56090~ fOO:'ar-357~2179080.001-715~~178l ....•vq.•l· .l
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PNSQL,2017
~;,95t5.95;9; .RlIsllC,2'011'5.Q ItN $·O\..~Qf75.9 IU~~~L,2.0;175.915.9
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Details of Investments 01-11-2003 to 2;-02 •.2004 (Acco~ntNp. 05 )Annexure :
Date 1Cat Coupon I Particulars I Interest due date Maturity, It ~~ac. Value J. Rate I., Cost Price . f A~~rd.l~tet~st]g~:i:~1 Yield..•.•••••••."""".•...•L ..,L...-" .
29/01/2Q041'GTG
Jvni . '2.'8, -9.e..·.o.'~" 3 -Mil ','~ .<
LQ, _~~Q.~O10.~eTGm
eTG)6N j9i1~~ ,Q~O.~ ·.~Q~Pl,.~
Z2;P~," ,,+,324,q8$.~3i 20000 e.Qe.
6;1TI~N~P~2
I-AN2020
'14.1[:11157.55
o ~~7,
9!C'TG~IG
30/0112004['OT<311 10,~e..TG. t ~
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ee6'"i
O~/02/2004l PSU. 5.6~
07,0272004r~~lJ~
~'C5A ~
01GI 196TG.~...._10:
EW""PS'U
,5.6 .\- 1-
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01
4.214.2l
6.235.75~4,2$~OJn?J?OQ4'P$UI . A.2"5 .. 1F]~]~70AY$"Sel.$SB 1-
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14,e.15T-~-14,J7,5n()l)o;OOr-2.912.777\.78r 2000Ql . 6~fT43~.7&( 14.37~50000:001 ·1.70S.333.a:n 2-00001 ~O.1~
~~oo.oooon.n~l 100J " 25.to.oooon nt' 20000
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50:00.00000 10.2. r 60 1'10MMO or~Ii
.10.Ql.~.'12,i!),OQOOQ.OO·1'1. nl'l nn-nOll"s(foo.6ooao 100.1'- :50'.110,00000.00'n.4.
1- 1.00,00000 100[ 1~ or
4.25~...o....J5.87'
27/Qm004I,l?§Yl. 4'l:ft.P:r5IfAYf~.aJ:la .'.f-f>SU ...~._2. F,D.17 [email protected]$B . -
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Deta.iJsof In-vestments 01-11-*.3 to 29"02-2004 (AccbuntNo. 11 )
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\ I_.,AnnexuOHOt1 3'12;
Bank IYield.QuIJ ..
·2000015::85
. 20000 Si85
Date
01/11/20031PSU
Calf 1 Coupon
s 75 ~F.0,36'.( DAYS PNB
Particulars Interest due datel Maturity I .1llceValue
20000
30/i0/20M1 ... " 50,OQ,00900
Rate 1 (#08t Price IAccrd.lnterest
1001· 51),00,00000.00
03111/20031P$U 0111112004'1 ~'"'t 15..QQ,QO.Q(50] 10Ql 1$;00.00000.005.75IF.O.364DAY$~~=a
04/1112oo3J PSU.-f
I .I . I I -I -I r5,sIF,O.6 MONTHs sap 04t(5512004r-~TI~1-{QP~OOOO()[__ 100.1 tit,OO.OOOOO.OO
OS/i1/2003IpsU-lr--55sIF.O,f;) MON.TH$,$B$· 1- .. 1----r--[5f~~~QP~'l .·!.r~,®,9Q99]T~~()Ql--2'IQO,'<)OPo.o.ObI . IPSU nS.tjf.D.364pAY$SSB;j \- l~ =r03f,l1~004~.-i 1lOP;OOOOor- ----fOOr---1JOO~OOOOO.OOl ~;,uuvvl
11/11120031PSU 5.BIPNB BONDS 2013 04-May·· 04IQWi2013004/05/2013
a,o'Q&PQPQ
-S;;OO:boQOO
foo·,. -~OO,OOOOO.OO 540,213.97PSU :5~8ffNEr~BQND:S2013 04-Mav,- 5,Otl.OOOOO 100 00,00000.00 ~40,21'3.9'p'SU $.S[pNBeCJNOS ~Q13.. " 04-MiiY'- 0410512013 1uQ eo,oOOOO.OO 540,213.9PSU 5.aTpNffa-QNOS 20J3' 04-MaY,I- 047C5572.013 _MP.Q.Q~O fOO .~00,00000.00 540,273.9PSU 5.8IPNB BQ.NO,$20'1a 04-Mayl- . 04/051201 a 5,OO~OOOOO 1QO 5l()O;OQOOO.pO 540.213,9
12111/20031PSU
PSU 5~8rpNBBQNDS 2013 04-Mav'- 0410o~013 , i11.()b,OOOOO 100 HTOb,QOOOO.OO 1.188,602.74_i \
-""
5.8IPNB eONDS 2013 04~Mavl~
2,5':t=e~T··2s.:AugT-·· 25f08~'O'10
0470512013 ( ;8,00,00000 100.20.22
1'OU~or ·12~48,88f5o.00
8~01.6f160.00 871,1~0.68
13/11/20031 SDL
Date
6.1""IT!
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r~ 1" r-, t) '" .'\.___r", "-', ~ i~ ~ --')
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Details OfInvestmen.iOl-11-2QP3 to 29-02-2004 (AccC)unt No. 11 )I, ~
r: ~
1-
Particulars l'lnterest due dater Maturity '1-)~ceValue I Rate I qost Price I Accrd ••••••••"'•••., . .
Annexurt'
B~nk IYield,.~~
'1Q0:4. 16;Q6,7gQ20A5T-~6.4§J~~~'~~
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Date Cat qoupon Particulars interest due Maturity ~aceValue Rate Cost Price Accrd. Bank Yielddate ~. \ Interest Charge
03/11/2003 PSU S.75F.D.364 DAYS PNB - - 01/1112004 ~11,bO,00000 100 11,(10,00000.00 20000 5.85'T
04/11/2003. PSU 5.5 F.O.6MONrHS SBP - - 04/05/2004 1,00,00000 100 1,00,00000.00. 3000 5.52
11/11/2003 PSU 5.8PNB BONDS 2013 04-May - 04/05/2013. 2,00,00000 100 2,00,00000.00 216,109.59 5.8, .20/11/2003 SOL 6'.2 .KLSOL2015 25-Feb .25-AuQ 25/08/2015 4 48,15000 100.9865 4,S2.57099.98 656,041:.81 1344.5 6.08
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03/12/2003 PSU 4.85 F.D.55 OAYSSBI - - 21101/2004' ,0,00.,00000 ~OO 10,00 00000.00 4;85') ;0 ,
12112/2003PSU 4.27 DAYS FD SBI,SSB - - 1$/~~2003' 4,00,00000100 4,00,00000.00 4.2'~ :
17/12/2003 erG 10.25 .LOAN2021 30-Nov 30-May 30/0SI~021; i 5,000 000 143.5., 7.~175,OOO.00 24201,.39 1500 6.15i I .•
20/1212003 PSU 5.35 F.D.6 MNr.SYNDI,aK . - 20/06/2004600,00000' .100 6,OP,OOOOO.00 , 5;37, .I
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01/01/2004 PSU 5.75 F.D.180 pAYS ANOHRAI3 - - 29/06/2004 'r 2,$0,00000 100 2,90,00000.00 5.75,
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13/02/2004 CTG 1 ).25 LOAN 2021 3Q-Nov 30-Mav $0/0$/2Q21 -9 150,Q()000 144 13,68,00000.00 1,974,548.61 2000 6.1_.I
21/02/2004 PSU .25 F.O.110AYS SBI,SSB . . 03/03/2004 '8 IQQ,oaOOO 100 800,00000.00 4.25t
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Item No. ~:._ . App~intment pfregarding AuditPortfolio managedIntfia,Mumbai' 1\2093-84.
Portfolio Auditor--~---of . the Investment
by the State Bank ofthe financial y-ear
1. Investment of monies belonging to mployees' Provident Fundis regulated by the provisions of Para 5 of Employees' ProvidentFundScheme, 1952 which readsas:
"All monies belonging to.the.Fund sball b itedinthe ReserveBank of Indta'or the State 8ank of Indiarinsuch other ScheduledBanksas may be approved by the Central vernment from time to
. time or shatt be inv.ested,subject to such directions as the CentralGovernment may from time to time give, i the securitiesmentionedor referred to in dauses (a) to (d) of secti. n 20·of the Indian TrustsAct, 1882 (11 of 1882), provided that h securities are payableboth in respectof capital and in respectof i terest in India",
2.' The workretating to investment of .PF money, which wasbeing handled hy the ReserveBank of In ia up to 31.03.95, wasentrusted to State Bank offndta, Mumbai .e.f. 01.04.1995. TheUlVeamQAt4· RlAQs9QloAgiAg .to.S?Fr F-UAd,-SPf and;EPFstaff -pensioftandgrattl·'fttnd-;sdone by theSecurities Service.Branch of State sank of Iodia Corporate Office,Mumbai.
3. The investments made by the SBI0 behalf of CBT,EPFareaudited by the Inspection and Audit Wingof he 581 periodically andalso by the concurrent auditor of State Bankof India on day to daybasis. Apart from this, statutory audit by th authorized CharteredAccountant firm is also conductedperiodicall
4. In spite of the internal control and audiit has been noticed that there have beenca of delay in coHectionof interest and maturity proceedsand other ues from the Issuers.The consultant Actuaryalso pointed out seve J casesof deficienciesin the functioning of the investmentmanager. Finance& InvestmentCommittee in its so= meeting held on 03.02. 999, after consideringthe importance of the matter decided to a int an independentportfolio auditor for theaudlt of investment ortfolio managed bythe 5SB of 5BI, Mumbai. Accordingly MIs. Bhadra & Co. wereappointed as portfoti.oaudito.rs-for the perio from 01.10.2000 to31.03.2001 and also for the finaneiaI year 20 1-2002. lhereafter,MIs BatHboi& Purohit was appointed the po olio auditors for theFinancial year 2002-03 after getting ap oval of Finance &Investment Committee in its 69th Meeting hel on 17.1.0.2002 andafter having financial sanctionof !he Executive ommittee in its 420d
C:li>acl.:uu c\FININVMET\77th F&I dl S.4.2004\ltem 77th S-4-2004.doc
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meeting held on 03.1?2002. Annua audit fee payable to Mis.Batliboi & Purohit was~Rs.~2,2Z,5DO/- in lu_sive_Qfservice tex and cur.of pocket expenses incurred in Mumbai However, if auditors werer~qyired to trctvel Q!Jtside Mymbai for audit work, out of pocketexpenses were required to be reimbu ed in addition to the auditfee.. -------~.'-'.,.~'''..~
5. Audit report has been received fl' m Batliboi & Purohit and isbeing placed as separate item before he Finance & InvestmentCommittee.
6. Portfolio auditors appointed by C T,EPF works as significantnode in the entire chain of portfolio m nagement internal controlsystems. "1t~ is cdrisioefedesseiltiaf to'get~tne transaction andcontrol systems of 5BI audited as per extant practice. EXistingportfolio auditor Batltboi& Purohit have offered their services forportfolio audit for the year 2003-04 on th same terms & conditionsas approved by Finance & Investment Co mittee for the year 2002-03 (Copy of the auditor's letter dated 0-12-2003 and terms &condltions are enclosed).
7. Appointment of Batliboi & Purohit a Portfolio Auditor for theyear 200-3-2004may be recommended.
. ~ Itra"ffe'" is a~crorilii'lgTy"pnre-e(f~'Defote Finance andInvestment Committee for considerati n,
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NATIONAL INSURANCE BuILDI", 204, DADABHOYNAORoJf ROA(FORT, MUMBAf - 400 001. ~
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Telegrames : ·ORGANfSERS·Telephone : 22O~1/42Fax: 91-22-220742601!.;;mait:'t5pea0b0m7:vsnl.netin
/, ; Ref.No. 3701B&P/2003-04 otb December,2003
Mr. K.L. Taneja,Regional P..F. Commissioner,Employees'Provident Fund Organisation,(Ministry of Labour, Govt. of India),Bhavishya Nidhi Bhavan, ;14, Bhikaji Cama Place,New Delhi 110066.
Dear Sir,
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Sub: Audit ofInvesiment Portfolio oeEm 10 ees' rovident FundOranisation mana ed b the State Bankof ndia for the eriodApril, 2003 to March, 2004.
We have completed the above mentioned Audit for th financial year 2002-2003 and suhmirted iour report thereon vide our letter dated on 3rdNovember,2003. We now agreeable to accept the bove Audit for thefinancial year 2003-2004 on the same terms &' conditio s mentioned in yourletter No. Invest-I11(34)99IAppointmentl9713 dated 4 October, 2002 forthe financial year 2U02-2003
- Thanking you,
Yours faithfully,For BATLIBOI & UROHIT,
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Terms ~f reference regarding . ~udit ,0 ,.!hE!."in".~!*....~ntportfolio of Emptoyees' Provlaenf unCI Organlsa onmanaged by the State Bank of India
(i) The Pattern of Investment notified by the Governmentfrom time to time is followed st ietly and that thedeviation is nil/negligible at the end f the year. Also tosuggest ways to br; ng the deviation ..I~velto nil if this isnot be!ng achieved by the S6I.
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Scrutinize the investment transactio s made by the SBIon day-to-day basis to ensure that thsame is as per thepattern as well as the guidelines issu by the qBT, EPf.Also to point out wherever deviations ave been made.
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Examine the investments made fro time to time toensure that the investment manager 0 td get maximumretu rn posst ble on OUr fu nds. . .
The interest and maturity proce s are collectedpromptly and invested as per the provl ions made in thePattern of Investment. Also to potnt ut delays if any,and the causes for such delay.
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lIncentives, wherever receivable from th institutions arecollected promptly and invested in the same category.Bring out cases of undue delay In the receipt ofincentives.
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Verify from ~he dally transaction that ,he charges arelevied correctly by the Bank as per an0condittoos.
Capital has not remained un-invested f.r ?, r;e":oc. IfCapital h33 remained uo-investec for perx-d then.ncome/caottat (lain on delayed invest rents has out:,vcighed P;0- investment income/capitai'Nnh income for un-Invested T)eriod.
Conduct ~'~;,!S;C3!veri'icatlor: of securiti__JOl:m, D-MEit -.--f~-.~- report ----ri~~---....p;~~._:::
reconciliation.
··wnetfier-a1T shares,·· securities, debentures and otherinvestments have been held in to name of Central Boardof Trustees, Employees' Provident Fund.
Whether there is a reasonable sys em of authorization atproper levets.end adequate syst . of internal controlscommensurate with quantum an value of investmenttransactions. ." .
Whetrh~r ac1equ9te records.are k~t in support of eachin¥eStmentdecigjon. ··i,Investment. has always been purct\aSed at the optimalmarket rate. Auditor's wiH ,fook \i~to the price on thedate of investment and check \ the proportion ofinvestment closer to lowest" medium and highest.
Wlie1be[ ioves-weAl .. trest'avaftal:5Jeyieldfortheparticutar perfod of matu ity.
..Report undUe delay in collection.of iut rest.
To comment on internal control-met 'nism whetherthesystems areaaequat-e to avoid any ~nternal frauds. Ifnot, suggest a sUita,.blemechanism ier discussing thematter with State Bank of India.
To examine whether the mutual fund ~s taken steps torectify the deficiencies pointed out in l' e last inspectionreport, if any wh1ch were specific'lIy advised byfimpfoyees' Provkfent Fund Orqanisatlor to State Bank ofIndia. II
Any other point wntcn comes to n~t!ce during thecourse of audit to be brought out. ·i·
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whether proper records.of all transactions andre correctly and timely
Regarding portfolio manaaemenhave been maintained' in rescontracts and, whether recordsupdated. _ _, __, _.-' .•
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Theterms ~nd conditions of a1it are-~~~--~ - -~~-~-. -------- 1----:- - --- --~-~The special audit of theInvestments done by the sazshall be.carriedoutonce.a.~~ withprovisionsfor~
~~rft~~Jc~::r~e~a~h:.~eOf~a~dV::~ ~nt~~Office 'at Mumbai. However fc!»rthe financial year2003-2004 test audit cannot ~e conducted.
IThe vearly audits s~an .cover !accounts up to 31st
March of each finC!r1clafyear. II
{!ill The audit shaff be cafrieo"under the directsupervision of Batli boi & Pur() it. Leader of theteam should be qaalifiE¥dCha' :ered Accountant.Name of leader of the team·sho ld be u.timated tothis office. . ,
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(lv) The audit(.;-s have to ensure that all theguidelines/circulars isSued, by theGovt./CBT,EPF from time to tIme are followed andthe various points ll1.entioned"ir )he scope of audit
~·~·'·"'meritioned&~ are 1(J01red"m-tO\~·
(v)
(vi)
(vii)
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After each yearly audit and test check the report ofthe Auditors should be 5ubmitted'ito the FABtCAOofthe prganisatjoll. Report after Y~arlYaudit shouldbe submitted within twom.ont,hs', from the end of
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the financial year. !
i(vi) The Audit Report Sht
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shortcomings in the existing set 0 p which aloe tobe taken care of by issuing sultabt guidetines.
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The remuneration for carrying Lout the aboveassignments shaH be Rs.2,27r50,,1- inclusive ofservice.tax "and out of"pOCke;~ eXf}erses inCt~rr~d inMumbai. no\t.tever, If ~uu:to:"~ .f;:'C requ.red t~travel outside Mumbai as reouired ! bv EPFO out ofpocket expenses wili be reih;bu;sdd in additjon tothe audit fee. II
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Initially auditors will be assiont.~daudit for a period- I -
of one vear. However, the term m~v be extendedon vear to year basis with mutual consent .
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Cixl The Audit Reports audit observations regarding PensionFU ".,~., p.r 9._V.i.!t~n~F._Und, ED..ufun~.,'.'.EP.'.Pstaff p. l'O'.v.id..e.".. t.Fund, EPFStaff Pension and Grat~ Fund etc. shou,d becategoriZed sepiiratelyas-separate"aCcounts - aremaintained by EPFO and State Ban~of India. -
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(x) Payment of audit fee and reimbursement of actualexpenditure, if any. will be made'!only after receipt ofaudit report.
(xi) Aucliters will fumish an undertaking to· maintainconfidentiality regarding ail -types of informationls/data-WIIkh they will come to know/acclJul~e In rel"tion withthis audit. .
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Item No.5 Portfolio management of EPFmoney-chafges payable to S.B.I. for theyear 2003-04 and 2004-05.
1) The agreement for portfolio management entered into with S8I lays down that S81 isen~me9 to r~rTl~f~O"'ftS~et ~jn 'Ann~xure 'A'tpth~ agreement. The fee asstipulatep in tIle .;l9r~ernent was appli~.;lbfeinitially for one year, to be revised on thebasis ofmutual--AegOOatioos. . .
2} Accordingly negotiations were held with the S8I at the lev~lof the Finance & InvestmentCommittee also. These efforts resulted in drastiC reductlon in the rates of servicecharges payable to the S8r for handling the investment pdrtfolio of EPFO.
3) The comparative position of the fees payabfe to S8l for the period from 1995-96 to 2002-03 is given below: ..
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~pplicab Applica !Applicable in [Applicable [Applicable !Applicable in !Applicablee in ble in 1997-98 ~n 1998-99 n 1999- ~OOO-Ol and n 2002-031995-96 1996- 2000 ,2001-02
97 !I) 25 paise 25 paise Re.O.lO per Re.O.lO Re.O.05 ! Rs 0.04 per Rs 0.03 perTrans per per Rs.IOO on every per Rs.100 per RS.I00 i Rs 100 on Rs 100 onaction Rs.loo Rs.100 I investment other on every on every Face value of Face valueFees. for for than 50S with a investmen investment every of every
investm investme , cap of Rs.1 lakh t other other than investment investmentents nts other I on each than 50S SOSwith a other than in other thanother than individual with a cap cap of Special in Specialthan SDS. i payment. of RS.l RS.50,OOO/ Deposit Deposit,£0£. I .L.ak.h OO.eadl Scheme.. In Scbe.me.In
i .on; -each ' individual aomtion a cap. addition a
i individual : payment. of Rs. cap of Rs.II payment. 20,000/- will 20,000/-I
Ij be placed on will be1 the placed on
transaction the 1>.-I fee recoveredI transaction1 on individual feeI, face value of recovered
investment on, (Deal ticket individualwise) face valueirrespective of ofthe amount investmentinvested (Deal ticketunder this wise), deal ticket. irrespective
of the
I , . amounti investedi I under thisI deal ticket..---- --
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Lump A lump sum l..sum fees charge of RS.I0 Waived Waived jWaived-Gf Rs.l0 lacs per scheme 1
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50 paiseperRs.l00inavenuesotherthan5DS.
(i) Income 1\0 Income-,collected on !c:oll,ected onSGL ~GLSecurities- No Securities- No !charge~ harge
i) Waived '. i)on SGL Waiv¢d onsecurities. SGL.
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Ill)custodiatFees
125 paiseper1<5.100p.a. on'nvestmerts otherhan SGLand SDS.
i) A lump sumcharge of Rs.Slac .par schemeas iAcome.collection fee.
i) 25paiseperRs.l00forSGL.see (Jrifi
es. i) Re.O.50 perand ~.100/- on i) Rs.O.25 i) R$.O.05on SG l ncome collected per perSecuriti pn non-SGL Rs.l00/- on ~.100/- on
: [securities. actual ~ual .money ~oneyollected on ~oIlected onnon-SGl ron-S~L~eturitieS. lseton~s.
(ii) Income Ii) Incomecollected on ~ollected onNon-SGL Non-SGLsecurities- Rs !securities- Rs0.05 per Rs. 0.05 per Rs.l00/-on l00/-on Iincome ncome i
conected on ollected onNon-SGL Non-SGLsecurities securitiesincluding 'neluding
Ioverdue overdueinterest, if ntereSt, ifI any. any,
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i} 50paise perIRs. 100 forhon-SGL;pecurities
!Waived otherhan for,charges .payable to!DepoSitories ., "()r' l5EMA.r Iransaaions!
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I Acceptance! andi with-II dr:awaII of! securi; tiesIon} behalfofCBTfPF
No chargesi
NO charges No charges
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4} The rates applicable in 2002-03, EPFO'sproposal for 2003-04 as recommended byFinance& Investment Committee in its 73rdmeetin~ held on 14.10.2003. and SBI'sresponsethereto are Indicatedbelow:
SL.No.
No. comments.
Applicable in 2002-03 COMMENTSNature of Fees
Rs O.O~ per Rs 100 on-f<kevarlie of everyinvestrTjentother than inSpecial',Deposit SchemeIn addition a cap of Rs10,ooo/~ on thetransacttion feerecovered on individualface velue of investment(Deal ticket wise)irrespecttive of theamount. invested underthis deal:ticket.
SBZ has notagreed - to theproposal forreduction ofcharges asrecommended bv''''the Finance andInvestmentCommitteeCBT,EPF.
1. TransactionFees Rs 0.03 per Rs100 on Facevalue of· every- investment:other than in SpedalDeposit Scheme.· Inaddition a cap of Rs.10,000/- will be placed onthe transaction feerecovered on individualface value of investment(Deal ticket wise)irrespective of the amountTnvesf:E:!d' "urid'er this dealticket..
SBI to reduce theincOmecollection fee onNon-SGl.securities fromRs 0.05 per 100/- to Rs0.04 per Rs 100/-
-Income collected on SGlSecurities- No chargeIncome collected on .Non-5Gl securities- Rs 0.05 perRs. 100/ -on incomecollectedon Non-SGl securitiesncludingoverdue interest, ifany
SBI has not agreedto the proposal forreduction ofcharges asrecommended bythe Finance andInvestmentCommittee CBT,EPF.
2. CollectionIncomeFees
3. Custodial Fees: Waived other than forcharges payable toDepoSitorjes for DEMATtrafiSaa.ons
.Waived qther than for No. comments.charges payable toDepositories for DEMATTf~6ns ,.
No charges No .:harges No. comments.Acceptance' andwithdrawal ofsecurities on behalfof CBTEPF
5. No chargesNo chargesTreasury Bills r,<--__ ~ -'-- __ ___' ___' __' ...o.._ __L c;.
5) While taking up the matter with SBI, it was stressedthat investmentsmade by SBI inTORsis in the nature of short term parking of fundsand be treated equivalentto TreasuryBills. It is not justifiable to pay bank chargestwice i.e. once at the time of short termparking in TDRsand again at the time of investments after maturity of TDRs. SBr hasagreed to scale down the bank charges to zero for TDRsbe/ow 180 days and a flatamount of Rs.500/- per TDR for TDRsabove 180 days but less than 364 days. SBl'sletter dated29.03.2004 is enclosed.
6) In future investment may be made in Repomarket and CBLOin addition to TORsfor shortterm parking of funds. It may be clarified to 561 th<;ltno benk chargesfor investing inRepv, CBLOetc. will bepayableSBI beingshort term parking ()f funds.
7) SBr is willing to continue to be the portfolio managerof funds of CBT,EPFat the preset."sceie of charges for a further period of 1 year from 01.04.;W04. SBI's letter dated27.03.2004 is enclosed.
8) The matter is accordingly placed before the Finance and Investment-Committeefor consideration of the Schedule of fees payable for 2003-04 and 2004-05 aswell as continuance of 58I as portfolio manager for 2004~05.
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~~aa1 PIovidcutFundCAmuniasionet(Investmalth~ Smplo)'eel ProvickalFuIl<l0rpDisati0u.Bhavishya Nidbi Bhavao,1<6.Bhibiji CamaP1Jce,New Dcnd 110066
'State Bank of India
L ,-. ~ I No. 7~ P fr\ ",/.-6tf:'
Dclr'Sir.
nw'lSACltON ClJARGES FORINVEST'MENT INSBoa TEDf DEPOSTtatM DUOSlTS
With rcferencc to your IeUcrI\O.mvestJl2(lO)l951BCJk cJw-gesIPt.lIdated l$-03..Q4we adYise u UDder:
TERM DEPOSIT RECEIPTS
(i)- We a.tC auaJdoa.pbccmenes, mainly becauso ofthc bcU« yi~ availablem ~ to me aJ.tcmativc investmeat aWDUCIill Ibe cacegory. nr~~=ra:=~='::':U:::~Of~HH.'"arouoitS.~ ··~·tTicraeciSloDfO~iDv-.ncots ~ • .,.. .govcmcdby mch ~ODS. and is aiotmercly a ~pIlkiq off\mds " ill the CI$e ofT -bilk, whc.Ie yield aIiI*t ia only ~.
.(It) TDRs Ile in tbe fOnD ofphyaCats, and rcqlIire mvch sreater (Qllow upwolk ill tc:nasof custody.lCCOnciliaDoD, ~11ection oiDWUrit)' pIOCUdsetc. UJiliko T-Bills whidlare in eleetrOdic foml (CS<JI; :Ale) toR',represeotmDCh ~.out1ay in·tmDs olman-tio~ture.
02.Howcver. lookiq to the special relationship botweco EPFO lad SBI, we JII'OPO'C toscale down the c:hargca' at UDder. :
AllIa",estmtDts except TDas : No muge
TDRJ below180days Free of ~st
YD. akve 180uys but let. than364days Flat aldout lU. 5001-
~YO\lmay Agee that this rqK'C5ents a vay J~ sacrifice on our partanct thetemporary parking roncept if applied for dqlloyments be~ six months where yieldconsid.eratioa is not primary.
03. We ahall be glad to receive confianatioo of the above.
j/2S61 04:55 2818746 SBI PHS
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Dear SIt,
RENEWAL OF AGREeMENT FOR PORTFOLIO MANAGEMeNT IOF FUNDS OF C8T,EPfOFOR mE YeAR 2ON-05 I
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WIth referenc:e 1O)'OUt fder no. 'r\V98t.fI2(tO)95/PUU dated 2~5-()3.;W. IIhave to adviM Chatwe ate wiling to continue to be the poItfaIio of fundaOfcaTEPFO at tht preI4IIJlscaleat dNItgos for8 further period of yeat from01.04-2004., .
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Exclusion of TDRs of less han one year with PublicSector.Banks while compu. g-exposure limits.
1. As per existing exposure limits fixed by t e Central Board of Trustees,Employees' Provident Fund, exposure to any /PSFI/Body corporate isrestricted to 25% of its net worth. CBT,EPFd cided in its meeting held on23.02.2004 to raise exposure limits from 25% t 30 0/0•
Item No.6
2. Exposure fimits were initially fixed in the ra when short term parkingin Term Deposit Receipts (TOR's) was not per issible in the Investment
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Pattern i.e. prior to 01.04.2003. ACcordinglyTO were not part of exposurelimits earlier while computing the limits for inv stment in bonds of publicsector banks.
3. To avoid locking up of the funds in low YJ' Iding bonds for extendedperiods and to avoid manlpulatlon bY.va.rious pia ers SBI has given its viewthat TDR'sare -of a short-term nature and are .' lassified as Primary (notsubordinate) debt. Hence, to include term depo its in the same exposurenorms as applicable to tong 'ter.m ·rn~(:!.ntsf l~r";2b9nds) may not beaQi).. ' -fO', pr.iate.·,., ~.Ir th~ref~~, .suH~Jn~,.,!,J:t ,~Q?!~k..~().f net '.w,9...Ett. ,9~~Qjlsra:erea:.oiil¥'· < . " ,teml .SQo tbat~tneyare not compelled to seek.avenues.tnless remunerative areas. SBI'S dated and 18.03.2004 areenclosed.
4. SBI's letter dated 14.02.2004 was p1acedbe ore the Central Board ofTrustees, Employees' ProvldentFurrd in its meeting held on 23.'()2.2004 andit noted the contents. Since, thematterwas pJacedbefore CBT,EPFwithoutconsideration by Frnance & 'Investment .Comr ittee, as a stop gaparrangement 56I was permitted to exclude TOR'sw ile computing exposurelimits for bonds ofPSU banks. Exposure limH:sm y be computed by thep.QrtfoUoman~er as sugge~ted in itsJett.~ dated 1402.;;wo4 ..
The matter is placed before the Financeand In estment Committee forconsideration.
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' sUJ)"O-partment, .Corporate Cent(e. . .. -~._,-~l;al;e--tilafll.K-ftl'-l a- . tBOx No. 12, Mumbal-400 021•
• ' '~/Fax: 2204 5468/2202 8n9 I 2286 8220. t , ~/Telegram : APEX .
eanctalAlfVist.-~andChief~rl'ts Off.cer, I.·,
__..~,Eolplo~ProviEfentFund6rganiSatioti,Bhavishya Nidhi Shavan, :14, Bhikaiji Cama Place,New Delhi 110 066
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T"~wtthf'ttbJtc Sector B'aht<s (PSBs) I
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We advise that thanks to the change in investment norms, we have bee.n able to\!eploy more than Rs. 3500.00 ~res with Public Sect~ Banks'during this~nan. Cial.Y.ea.r. Had this ave.nue nOt been made availa~e, the funds wouldnecessarily have been deployed in Corporate Bonds, f~ng a much lesseryield. 111emarket for corporate bonds being quite smaf1er, we would have fallenprey to manipulation by the various players and would have locked into low yieldsfor extended periods. l
02. Howev~rj. such asituatiof:1.wiUnewre-emergedUe to \OUr' exCeeding the .exposure limits of 30% Ofnetworth of the .variousPSBs. ~~y of these ASSs infaclareootinter!!!~joltulk •• ' ~'.WJmay soon be radn{r~SilUi§:i:':'''N'~}!jfv{Qijfdllave.tD fAOI' eRteF_~le builds "...rrrf a big wayor.lhe funds with banks (including·SBt) Who Offer a very low rate on these deposits.Either way, EPFO would fseean appreciable erosion in yi~on suchinvestments. I
03.We are of the view that TOR's are of a short term natureand.;:Il'e classified asPrimary (notsubordinate) debt Hence, to iocIuEtE!term deJ\>OsftSmthe sameexpoSU(1~nor,ms as applk:abteto ·Iongtefrn -instruments '(T'.":2·bOnds) may notbe appropriate. We sf}ouId, the{efoce,suggest that the 30~ of networth beconsidered only for long term exposures and not for short t~rm so that we are notcompel~ to seek avenlle5in less remunerative areas. \
04. We have al.readY bre.ached.........•....the..... 30%. leY. e.,I.ina num.b.e.r01..·.ca__~..ses and.a list hasbeen made available for ratificatiQn by the Finance & Inv.est~~"oommtttee. wesuggest that the dispens8&n.as·suggested above be also ~ecommended to theboard in order to protect the yields in the category of PSU bo\ldsITDRs.
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"CThe Financial Advisor & Chief Accounts Officer,The Employees Provident Fund Organisation,Bhavishya Nidhi Bhavan,14, Bhikaji Gama Place,N,w Delhi 110066
;;no. ~I No. 7~P"" S./~S:7~
Dear Sir,
TOR PLACEMENTS WITH PSUBANKS
We refer to our letter no. TRlPMSI2318 dated 13.02.2004 Wtterein we hadrequested that Term Deposits beJ(ept out of the purview oflUlenetworthrelatedexposure limit of~k. These suggestions were also ~tefy included in theagenda for the boarQ·rneeting,beklon 23rdFebruary 2004 tq .approve the revi'Sednorms.
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.02Wa:endGse;Ji;;f·PStf~lks andthe~te~pace1~per 30%norms: ,'>
The demand for TOR's is slackening and with it the ratesthe!PSU banks arewilling to pay for a 364-day deposit Unless we receive a cfaf\ification on thenorms we may be deprived opportunities. and the temporaryl-daY parking withS8t aBowrates (4.25%) would need to be continued. .
. O~.We request you to urgentlyadvp us in -(hematter.'
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D I' uty General Manager, MS.& CS)
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·_'_'__ ' _EX~OSUR~QF EeFO INVARIO_USBANKS/Ofl AAs on 17~,3.04" .-__-- -,.SL.NO BANK BlS DT' TNW 30%TNW EXffOSURE SPACE LEFT
1 S81 30.09.032S8lNOORE 3H}3:033 SBBJ 30.09.03 '4 SBH 31.03.035 SBM 30.09.036 SBSaurashtra 31.03.037 SBP 31.03.038 SBT 31.03.039 AndhraBank 31.03.0310 BOB 30.09.0311 BOM 31.03.0312 BOI 30.09.0313.AllahabadBank30.09.0314 Canara Bank 30.09.0315 Dena Bank 30.09.0316 lOB, 31.03.0317 OBC 31.03.0318 VijayaBank30.09~0319PNB 30:09.0320.UBI 30,00.-0321 UCOBank 31.03.0322,UQi1ed.2aAk,of 34,Q3,032~849m' -,-". 31.tm-;f)S-24 NABARD 31.03.0325 NHB- 30.09.0326 IFel 30.09.0327 lOBI 30.09.0328 IIBI 30.09.0329 IRBI 30.09.0330 ICIC. 30.09.0331 INDIANBANK31.03.0332 SYND.BANK 31.03.03
17203.38 5161.01 1628.60 3532,4158-3:66 t75;ff)- 145-.00 30':10903.45 271.04 225.00 46:041250.94 375.28 447.00 (71.72)512.00 153.60 128.00 25.60625.44 187.63 390.00 (202.37)1412.00 423.60 423.00 0.60722.80 216.84 180.00 36.841115.43 334.63 390.00(55.37)412.5.31 1231'.59 329.00 9OS..59980.27 294.08 '935.00 (640.92)3357.21 ,1007.16 436.03 571.13938.16 281.45 197.00 84.45
4024.14 1201.24 946.15 260.49863.72 259.12 0.00 259.121.45~.59 ·431.~ .37.02 400.862109.34 632.80 "277.00 355.80749.09 224.73 61.00 163.73
3703.41 1111.02 i 894.01 217;012012;09 621'.63- 726.50 {104:87)1205.65 361.70 361.00 '0.69'~rl-4 ~ +2&.0& 469':52'
~·~~.OO--- - ···~·~"'·--~1OS.79 ..-.~. -11,i"tl '-63,1§1.QP, 1895~l(} 1.00 1894.70,
0.00 0..0.0 52.92 (52.92)0.00 0.00 14>-24-.41 (1024.41)0.00 0.00 2'59.00 (255!tOO)O~OO 0.00 5.00 (5.00)0.00 0.00 35.57 (35,57)
7682.67 . 2304.80 499.86 1804.941287.25 386.18 ,0.00 386.181579.59 473.88 394.89- 78.99
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.---Item-No.-9.:-Statu~aper--On--46D/O-HKT--80nas~alue---of-Rs.--25-erores-NOnPayment of outstanding interest ctnd principal. ,
~. A sum of~s.25c:r:c>r~! b~ingthe J;Pf~OlltIitJlJJJPI}~,.W,!!!IJ:I~~t~(f QJl 21.07.94.b.yReserve Bank of India, Mumbai, the then portfolio manager, in 16% Hf.1Tbonds 1999 onbehalf of Central Board of Trustees, Employees' Provident Fund. The interest on thesebonds was payable half yearly on 1st January and 1St Jul~. The half yearly Interest amountpayable was Rs.2Crores. '
2. The State Bank of Indla, Mumbai who is the investment manager of EPFOrganisation.had earlier informed that HMT had failed to pay the halfl yearly intetest due on 01.01.96onw,ards. "~ordir:'~ty,, th;. rTl~~~r.was,t,a~~, uR Y',!m,,~,~lJ?rr Jl.!l'yr,!len~~f outstandingIntateSt; "'ereafter,' tl1emat'ler was also taken up l5y ffi~ Secretary., r"'IO,stry of Labourwith the Secretary, Ministry of Heavy Industry on 31.U.96 and it was assured by theMinistry of Heavy Industry that HMT would pay all the o~tstan.ding interest by 30:n Sept,1997 to EPFOrganisafion. Despite repeated assuraoces] HMt had failed to honourJtsc.ommitment to remit the outstanding interest from 01.01.96 onwards. However HMT Ltdpaid Rs.2.25 crores from 08.02.1997 to 09.05.1998 as ag'~inst interest due amounting toRs.4 crores per annum. I
3. In spite of several reminders HMT ltd. did not fulfill assurances and continued tomake default. Ultimately Central Board of Trustees,E'?lployees' Pr.o'VidentFund, had togrant permission in its .1SOfh meeting he'd on 06.03.1999 to ,nitiate legal action against HMTLtd.. for recovery of OlltStandiog dues i.e. prindpaJof Rs.2$ crores, Interest at the rate of
._m_,~,.,~16°/Q i1Odo\lerdJ,'Q ioter;est@ 180,", algg~ witblagaJltiOsts ~_R~t •••~w9sw#s-wet'e4';'1eEJ.·.for j:QCo\LQr'f'~ a-IiWfR"*'Rs.i9,~;()s.,80}.18af1d ~ .. ii,3e,?~;e64.&frtogetherwtth~~current and future interests under the provisions of order 37 OfCode of Civil Procedure videO.S. No. 4974/1999 and 7157/2000 respectively inCity CivtlCourt Bangalore. Amount duefWEn HMT ltd. as on 3{).-()9~2003comes to Rs,89;61,96,657 .::33 after takingJnterest @16%and over due interest,,@18%. In addition'f.egalchaf'ges are payabJeby HMTLtd.
4. HMT Ltd. wanted waiver of interest as one time settlement. Central Board ofTru5tee5,~mplo~s' ProvidentFuoo did not agree and cannot agree to waive the duespertaining to workers'fund. As the funds invested·are 'frustl\1oney to be repaid to workerswith interest, HMTis liable to pay the principal and interest due along with overdue interest.
5. A meeting of offlcials of Ministry of HeavyIndustry, Miristry of Labour and choseofCentral Board of Trustees, Employee 28.06.2002 for settlement of dues and aqre ed to s'Provident Fund took place on 21:06.20'02. Thereafter,-HMT Ltd. gave proposal dated payinterest on princfpal (Rs.25 crores) at contracted interest ra~ of 16% up to the date ofmaturity i.e. 02.08.1999 and Reserve Bank of India, Sp.eciall,Oepositinterest rate on thebalance outstanding from the date of maturity till the"da,teofs~ttter:n.~nt. Propose: of Hl'lTltd. was inadequate regarding security of dues payable, reimbursement of court fee. escrowmechanism and payment of interest at the rate at least equivatent to the committee 'iabilityof Central Board of Trustees, 'Employees' Provident Fund towards pavment of nterest to itsmembers under Para 60 (1) of EPFScheme, 1952. Moreover, H['1Tltd. computed in:erest atsimple rate of interest and arrived at liabilities of Rs./52,S5,30.334;- mstead ofRs.60,06,72,089.83 worked out by Central Boardof Trustees, Erpployees' Prov.dent ;:und upto 31.07.2002. Difference was du-eto two factors viz.
(i) HMT ltd. r:rtlculated interest at simple rate of interest "up to 02.08.:999:/hereasC-entral Board of Trustees, Employ-ees' Provident FJnd calculated interest atcompound rate for the wh9l~peri9<;!. Att;er<lZ.Q8.1999H!'jT L.td and Central Board ofTrustees, Employees' Provident fund .botn computed interest at compound rate.
1
(H) For the--year--Z-002-03 HMT ltd;comput~ inte"est @ 9% i.e. equivalent to SDSinterest rate whereas Central Board of Trustees, Employees' Provident Fundcomputed-tnterest@ 9.5% for 200-2--1)3 t.e: the\ rateofinte-restpa;dby it-toilsmembers.
6. Mis. HMThas already acknowledged its liability for',.principal and interest in the Courtalso. However, aforesaid civil suits were adjourned from time to time. Hon'ble City CivilCourt, Bangalore passed the following orders on 19.08,20~3: ,( \'
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"Defendant shaH furnish security for the suit claim 'ibyway of immovable property asundertaken inthe memo filed in thesuit. Further as per the directions of the Hon'bleSupreme Court, the parties shallapproach.the high; power committee constituted forresolving the dispute between the public enterprise and public sector undertakingw~hifl one morit,,~ itrs further; dartftoo'thari' ttle' hi!)fl j>l1wer' cottnilitfeedb "notresolve the dispute between the parties, or do not give clearance-for Jitigation before31 st March,2004, it shall be presumed that clearance is given to the plaintiff forlitigation and tl:\~ssuit shall be proceeded with beforethls court. The case shafl becalled on 31.03.200.3".
7. The matter was, accordingly, referred to Committee of Disputes, Cabinet Secretariatvide D.O. No. G-27013/4/2003-SS II dated 16-12-2003. The Committee on Disputes heardboth the parties at length on 5.2.2004 and 4.3.2004. The Committee on Disputes in itsmeeting held on 4.3.2004 decided as under: -
(i) The CommitO!eperused the mlnutes of its earl ier meet)ng held on 5.2.2004 (item No.h51.a.nd baar'(Latkmgtb botb.tba libgaot paFtiQS to~8i5flt:llesttf'lEfeto~eOflstdef'8ti'On;
l.o ,~J;Q. F~1¥e ..th.@ .Qispttta;--b&lA.,tA&Htfgerl'~p81"tteS'4'mve"81Ti'vett at'amtJtt::tattyacceptable agreement as under: -
(a) MIs HMT Limi.ted would pay to Employees' Provident Fund Organisation {EPfO)theprincipJe amount o.f·Rs. 25 crores of the bonds and the contracted interest r ,thereon @ 16% up to the date of maturity of the bonds i.e. 02.08.1999 and from l .
2.8.1999 to the date of final settlement, HMT Liniited would pay compoundedinterest at the rate dedaced and paid by EPFOto its subscribers,subject to theapproval of the respediveBoards of EPFOand HMT~imited.
For repaying of dues payable to EPFO, HMT Limited would identify and offerspecific immovable properties to EPFO,having cleat' marketable title and whichare free from encumbrances. The process of disposal of these properties wouldbe done through an independent agency, such as 561 Caps limited. The agencyso appointed would sell the properties and remit !the.sale proceeds to EPfOthrough Escrow account. '
The due diligence exercise would be undertaken by ~MT Limited and they wouldbear the cost for the same and if any such process is to be undertaken by EPFOthen they would pay the cost. However, the cost of valuation of immovabfeoroperties would be shared by both the parties.
(b)
(c)
2. The Committee directed that the exercise mentioned at (b) & (c) above would becompleted within a time frame of six months.
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r- ---··-----------·---"ACconlilfg--ro--above--clecision·--of -Comlpittee of Disputes,·--amouR~--() payable by HMT Ltd. as on 31.3.2004 comes tp Rs. 61,65,.58,356/- subject~ to audit»: .Copy- .oLcomPJltation kenclo~_.QfJ..Ci~lon .of.CommitteJ!. ..lW
Disputes needfo be discussed and apPr()ved by the FiQance & Investment(' CommIttee-andCentraIBoarCTortiiIstees, ~Eifi~/dyees'Proviaeilt Fuifil,EPF .:
C' Matter is accordingly placed for consideration before Finance &1':'< Investment Committee.c:
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'******** ', New Delhi, the 11lh March, ~'Jf
i :::r.p.~, ,)Hi 'ff¥" ,~~(~,.;r~, 'The undersigned .is directed to drculate herewith the minutes of the meeting of the Committee on Disputes held
on 04/03/2004 in the Committee Room, cabinet Secretariat, Rashtrapati Bha~n, New Delhi.
~.
(B.B.Jain)Under SecretaryTele: 23012835,": " :;r
Secretary, Department of Industrial Policy" promotionSecretary, Department of Public Enterprises "!l:(:} j
Secretary, Department of legal Affairs j ~.,
Finance Secretary
each.Member, Central Board of Direct Taxes.Secretary, Financial Sector, % EconomicAffairs.Secretary, 0/0 Telecommunications.Secretary, Mlo labour.Secretary, 0/0, Heavy Industries. -CMD,State Bankof Patiala. '~,,"<,,~, ,CMD,Small InduStries Development Bank of India.CMD,Mahanagar Telephone Nigam,Limited.
~G, Employees Provident Fund OrganiSation.CMD,H.M.T.limited. ' ; t
Item Nos. 1 to 11Item Nos. 1 to 10Item No. 11Item No. 12Item No. 12Item Nos. 1 to 9Item No. 10Item No. 11Item No. 12Item No. 12
InternaLCircu.lationSecy (C& PGl/AS/DSCSM)lUS(BB)
(B.B.Jain)Under SecretaryTele: 23012835
45 Copies
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,. Minutes of the COD meeting held on Q4.03.2004., '
ITEM APPELlANTNO.
RESPONDENT RtF. No.REF.DATE
SUBJECTMAlTER OFTHE AMOUNTAS INDISPUTE THE
REFERENCE/TAXINOOENCE
-.-_. ---:-:--:-- --:::__ --:--::-~_:____:__.,_~~~-___:::___=_~, (Rs.Jn lc!~~L.11 Mahanagar Department of Appeal in High Court of Delhi', 134100
Telephone Revenue againSt Order in Original no. OT-, 59400Nigam limited (CeOT) U/03-04/1437 dated 10.02.2004
regarding (1) claim for deduction of \license fees paid by MTNL to DOT;(2) claim for deduction u/s SOIA;(3) additions based on Tax AuditReport; (4) liquidated damagespaid in respect of which applicationfiled with Authority for AdvanceRuling is still pending for theA_Y.200Z-03.
The Committee, postponed consideration Of the case till its next meeting.
Non remittance of the outstanding 8961.97interest on 16% HMT bOnds 1999from 01.01.96 onwards though thedate of maturity of Bonds was .02.08.99. (Referred back item no.S to the COD meeting held on05/0Z/2004)~
G-he Committee perused the minutes of its earlier meeting held on 05.02.2004 {item no. 5)and heard at length both the litigant parties to the dispute under consideration. In order toresolve the dispute, both the litigant parties have arrived at a mutually acceptable agreementas under:-
H.M.T. limited
(a) MIs HMT limited would pay. to Employees Provident Fund Organisation (EPFO) the .principle amount of Rs. 25 crores of the bonds and the contracted interest thereon @ 16%up to the date of maturity of the bonds i.e. 02.08.1999 and from 02.08.1999 ~ the date offinal settlement, HMT limited would pay compounded interest at the rate declared and paidby EPFO to its subscribers, subject to the approval of the respective Boards of EPFOandHMT Limited. .
(b) For repaying of dues payable to EPFO, HMT limited would identify and @fferspecificimmovable properties to EPFO, having clear marketable title and whic~ar~ free fromencumbrances. The process of disposal of these properties would be done', through anindependent agency, such as 58I Caps ·Umited. The agency so appointed would sell theproperties and remit the sale proceeds to EPFOthrough Escrowaccount. '
(c) The due diligence exercise would be undertaken by HMT limited and they would bearthe cost for the same and if any such process is to be undertaken by EPFOthen they wouldpay the cost. However, the cost of valuation of immovable properties would be shared byboth the parties.
2. The Committee directed that the' exercise mentioned at (b) & (c) above would becompleted within a time frame of six months . .)
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Organisation
..-i-2liOO2-03/Tax11/02/2004
D.O.No. G-27013/4/2003-ss.n16/1212003
Principal and Interest Receivable from ffMT limited
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Date Particulars Interest Due
1f'lILf'I?07 r'~'~r~~' 0H'~(,":>lv''!t11""':;0""" ""''''C' ' •••.•14-·03-97 [Interest n
(1) (2) (3) J4)
16% 1219-07-9431-12-94
""t:"_i inclusive onlmoney (10 Cr.) 121-07-94 31-12-94
16% 3484932IInterest inclusive on[money (5 Cr.) '26-07-94 101-12-94
105-01-95 [Interest Paid by HMT101-07-95 [Half Yearly IntereStDue 101-01-95 1">1'1 rv::. ,...:
101-01-96 rHaj(~arly Interest Due[3 -03-96 [Overdue Interesf taken for yearly
,.nA;ng
14-05-96 umerest qece '''''
101-07-95 [31-12-9511/2 yr.1112 yr.
(5)
Interest Paid: by HMT
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159
. 16% 7189041
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\ 16%i, 16%
101-07-96 [Half Yearly Interest Due101-01-97 [Half Yearly Interest Due
101-01-96 i'":ln..M...OI't
['01-07-96 [31.12-96i 16~, 16%
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t.,. "...",., Overdue Interest taken for yearlyI') -V,)-""{ compounding
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, 16%
250000li',
)1-07-97 IHaif Yearly Interest Due 11/2 yr..1
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101~01-98 rHalfYearlylntereSt Due
31-03-98 ~;~:uu~~~~~est'taken for yearly
[01-07-97 131-12-97 16%
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'01-01-99 :Half Yearly Interest Due31_03_99('\;""1'1, •••Interest taken for yearly
:compounding
101-07-98 131-12-98 1112 yr.
101-07-99 !HalfYearly Interest Due 30-06-99 20000000!01-0' -99 1/2 yr. ~6%
!32 days201457534 r:I'IA<::nr:l!<::
1n?_n.q_oQInterest dueupto maturity i01-07-99 ,,," no nn
Add Princi •.)ft:' ..
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13132000 242 l~~/o 31109147.68 422115997365 1125 ~ -.±~488049.66 qO~OUqUq7_~5 J1.50Vo 446~~ 514216431365 9.50'Yo 4AASOC;fiO.95 ,,)2
1313.2001!313.200i[31.3.2003
,1313.2004 366 9.50to 53491364.24 61~"C;;I!'tO:;~
(~(- , Item No.l0. PortfolioAudit for the year 2002-03.('
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Gist of Audit Report of Batliboi & Purohit on I,.vestment Portfolio ofEmployees' Provident Fund Organisation managed by the State Bank ofIndia for the period 01-04-2002 to 31.3.2003 is as under:-
r------,----PagelPara
6(i)7/ 3.0.0(iii)
OF REMARKSOF ,S8XAle' REMARKSNo. AUDITOR
REMARKSEMPLOYEES'PROVIDENTFUNDORGANISATION(IF ANY)
7. iii (a)
,To doverification: with totalholdings.
physical We confirm that,and tally physical verificationNon-SGL of SGL & Non SGL
securities are beingcarried out by theExternal Auditors onhalf yearly basis.
SBI's view is I
acceptable. ' Nofurther commentsare required. ISBZmay ensure tostreamline thesystem to fu rnish "the monthlyreconciliation of I
holding inCSGL,DEMAT andin physical form!duly reconciled iwith that of total iholding at the endof each month.SBI should take upthe matter with!NSDL to get the:face value'recorded in NSDL!statement for Itimelyreconciliation
We have once againverified from theNational SecuritiesDepository Ltd(NSDL) site andfound that necessarycorrections havesince been carriedout. Our enquiry withNSDLreveals that,such instances occurvery rarely but errorsare being rectifiedduring updation. Weinvariably confirm theface value of eachsecurity at the time ofinvestment from ouroeoosrtorv Partlclpantsection (DP).Moreover, ourConcurrent Auditors
I are also verifying theDemat statement onI a monthly basis,
\ which is then
I'submitted toCorporate
I CentraljEPFO officeI for their information
Demat reconciliationas on 31st March2003 comparing theDemat statements ofNSDL and"Certificate ofHolding reports"generated from thesystems was notconducted. This hasresulted inunidentifieddiscrepancies.
r_,
and record.
No comments.
I Certain securities, were thoughdemated before 31st
March 2003 but dueto non-updation in ,the system recordswere still appearing
Iin physical report,which were rectified
I at our instance.I Refer Annexure 1.-rTtle ssi"(back- office) -As stated- a-b-o-'v-e-w-e,-1-A-bs--tr-a-ct-----o--f !I should reconcile the are arranging to Concurrent Ii Dernat holding as rectify the Auditors reports Ii per books and as per discrepancies pointed related to Central
IiNSDL Oemat out. Reconciliationof Board of Trustees,statement on Oemat Holding as per Employees'
! periodical basis. Bank's book and as ProvidentI per NSOL Oemat Fund,EPF should!! Statement is done on be given by SBI. ,!
monthly basisand thesame is audited bythe Concurrent
8 I 3.0.0(b)
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In case of 14.75%- lOBI Omni 2003 This has arisen due to(Code the fact that, issuers360150),NSDL of debt instrumentsdebited Rs.5 Crs. on follow different
'Ii 25-3-2003 but later practices in putting
Iconfirmed holding on through redemption6-4-2003. entries. However, we
are closely monitoring
II any deviation arising
out of such practices.We have sinceupdated our system.-
NoComments.
11 II 3(vii)(a)
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In case of security Signatures obtained No comments.code 360144 (Ale No , subsequently.11) (transaction date Ii
zs" January 2000),certificate numbers I'
372-376 of 12.50%Industrial !Development Bank iOf India (lOBI) IOMNI BONDS 2004:having a face value I'
of Rs. 5, 00,00,000(Rs. 5 Crores), the I
, certificates were notauthorized byAuthorised
.Auditors.
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13 / 3(viii) (d)
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signatorie$ of lOBI.In the absence ofthe same theI certificates wouldInot have its legalI authendtv.
Since Rectifiedj SafeCustody Receipts(SCRs) for maturedsecurities have\ sincebeen re~'oved.System now in .placeto monitor m turedSCRs to bereturned.We are arrangi~g tocall back' thesecurities whereverdemat possibilities
IWe have observedi the SCR receipts for! the matured! securities beingi retained in SCR filei along with theI current SCR. Such: SCR should be, returned toI respective branch on', receipt of proceedsin order to avoidconfusion
No comments.
exist.
, In 9 cases, securitiesaggregating, Rs.4,79,61,90,000/-holders name is SBI
. AlC EPFOinstead ofCentral Board ofTrustees, Employees'Provident Fund EPF.
We do not accept thecontention of theAuditors as style ofnomenclature doesnot affect our righ~ asholders (Custodian)of the security.
All purchases &holdings should bein the name ofCBT,EPF.
In 7 cases securitiesare held in the formof allotment lettersthough date ofpurchase pertains tomore than 2 yearsold.
Matter is underconstant follow 'upwith the issuer. Lastreminder sent on15.9.2003. Further,we confirm that outof seven allotmentletters shown aspending in the report,we have sincereceived Bon~Certificate in respectof Security Code n<1>501010, 13.6% W6IOFCL 2006 for Rs!12,00,000/-. As also,we have surrendered'Allotment letter foriexchange of security'/Code no 510045"12.52% Goa TIL IRR',
Effective measuresare required onthe part of SBI to ,remove the Ideficiency Iparticularly in caseof defaulter, -Richard & Crudas. i
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rDev. Forl Rs.5,00,00,000/ I' The_,_matter has' beentaken up ~ith thehighest levels forobtaining \ thesecurities. \
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15 / 4(ii)
II 16 I4.0.0 i(iii) i
II Purchase of HUDeO The rating AAf4 (SO)I Bonds of Rs. 100 cr. is on a sta1daloneIOn 4.3.2003 out of basis as the paper is'issue rated as AAA secured by Le'tter of(ind) 50 by FITCH comfort. The overeltignoring the down gradation, of thedowngrading of HUDCO that I, toorating of AA - by' another agency wouldCRISIL on 4.3.2003. not affect the rating
of the paper. In fad,this paper continuesbe traded in ", thesecondary market asAM (SO) rated Raperand we feel that thereis no deviation fromthe guidelines .:
Purchases were We are of themade from DFHI in opinion, that there' is10 cases, which is no breach ofsubsidiary of S8I I instructions <liswithin the market! conversion of DFIHIhigh-lows available i into our subsidiary ofon the date of I S8I is yet to completeinvestment. i the legalitie~.
i However, we haveI acvised EPFO about,;the transactions fortheir views/comment,
Securitiesi purchased from! Primary Market, With respect
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furtheras
Allotment is done by.the issuer, who haveallotted only Rs. -3.00
to Crores against
Auditorscommentedunder: -
Though FITCH hasgiven AAA ratingto the paper onthe basis of Letterof comfort issuedby "Ministry ofUrbanDevelopmentPovertyAlleviation", it hasalso clarified that"letter of comfort
&
is not a guarantee,it is nevertheless,'sufficiently strong;to warrant implicit I
sovereign supportfor the proposedbond issue." In ouropinion pressrelease of CRISILshould have beenconsidered' for
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investmentdecision.SB! has beenallowed in revisedguidelines to dealwith DFHI subjectto submission ofseparate report ;showing that dealswere made at i
market rates.
Firm allotmentmay not· be I,'
possible in allcases. Investment!
17 I4.iii (b)
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application money of opportunities may'Rs. 25.00 Crores. We continue to -be----,-- ... --'-~ -,._-_.-----_ .._ .... --~have paid <:mly on enchased inallotment of Rs. 3.00 primary andcrores and w~ do not secondary marketsunderstand : the both.nature of obje~jon.
condition of firmallotment we havenoticed that as perinvestment note No
1200200031 theI proposed amount tobe invested was Rs.25,00,00,000.However thesecurities amountingto Rs. 3,00,00,000were allotted.
The matter nas beentaken up withHUDCO. .Such casesnoted for spectatmonitoring. .
Matter requires Ivigorous followup.on the part of SSB I
of 5BI to recoverRs. ;3,69,862/-from HUDCO.
i 18-23 I15.0.0I (t to 25)!,
The new systemcalculates theinterest receivablefrom the date ofapplication till thedate of allotment incase of purchasesmade from primarymarket, which may
I'be received after thealIotment or at the
I time of receipt of. first interestinstallment. On ourverification ofinterest receivableand interest receivedwe have observedthat in 2 cases of9% HUDCO-III,Code No.390014,(Ale No.ll & 25)the interest from thedate of applicationtill the date ofallotment amounting IRs. 3,69,862/- is notreceived even I
though the first 1interest installmentwas received.
j
i We have analyzedi the investmentI decision taken by! 5BI (front office) byI comparing them with
! the other investment. opportunities
While our efforts are I Following ito obtain maXimUn'l.I information might \'yield, it may not be be required beforepossible to track each any comments I
and every security could be offeredthat is available in the on effiCiency ormarket. Further, the otherwise of the
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dealer striking the 1deals.
available in the dynamics of themarket on same market is such that,day. --_. ------ ·we may---pu-fchase-- a-We have taken security at some yield
I maturity year of the and quotes fpr otherI investment made as securities at ~ higheri a basis for yields might come upI comparison for after the deal isI PSU/PSFI and SDL struck. Also, theI securities. We have comparison has to bei also considered the made with similar
I number and volume size deals. Smallof trades while value deals are oftenI arriving at our struck at off the
I conclusion. market ratesII particularly for oddi! lots and cannot form! the basis fori comparison. TheI report aIso goes,! purely by yield and
not category ofinvestments. We maygo in for a' certaincategory ofinvestments to fulfilthe distributionobligations andcomparing the yieldwith that of anothercategory may not be
r--::-~------:-;--..;.........--------- approprLat~:.. ., . --j
24 / The instances where All the deals put Auditors gave their6.0.0 deals are made at a through by us on view as under on
price higher than behalf of EPFO (in the comments ofdays' average price SDL and CGS SBI "We haveare referred to in category) have to be compared theAnnexure IV. I routed through NDS, purchase priceThe daily market RBI platform for with daily averagequotations are not I settlement of price. The daily
~available in case of! transactlons. The average price isdeals done without I; market highs/ lows derived by addingbroker involvement are obtained from the day's high and low(Direct deals) and 1 NDS data, which price and dividingwhere no other trade, would include our addition by 2. Wewas undertaken on! deals also. Hence,the I have taken dallythat day in the' question of high and iowmarket. Hence we purchasing the prices from NSEhave not carried out securities beyond the quotes made,the - above exercise market's highest price. available to us" .in such cases. does not arise at all. However SBr be
advised to make
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a)The exact timewhen the deal wasstruck.b)The offer·available in themarket before thedeal was struck.c)Voice recordingsystem at thedealer's end.
H keeol Iowever eepmg Iin view marketdyanamics,CentralBoard of Trustees,Employees'Provident Fund,may continue torely on controlsystems in SBrand SBI may beadvised to encash ,best possible Iinvestment :opportunities.
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5BI (front office) hasreported the patternof investment for2002-03 to EPFObased on the reportgenerated from thenew system.:-towever, on ourverification weobserved that therewas difference of Rs.244.27 Crores ascompared to theholding report as on31st March 2003
I generated from old II :i system. Ii The compliance with!, pattern of iinvestment should Ibe based on the Iincremental net Iaccretion during theperiod and not on ithe total Iinvestments made Iduring the period. As "observed currentlythe investment Ipattern compliance:
; is based on the totalinvestments made.There are no !major deviationsobserved in thepattern ofinvestment duringthe period underaudit.
No comments. ,
all efforts to strikedeals at least atlesser then thehighest price.
The provisionshould be made inthe 5trabussystem tocalculate the IPattern Of!Investment on the ibasis of net ! .
accretion and ontotal investments II
made during theperiod. iI
III,
'i
25 / 8I (i) & (iii)
I
Interest received at We are ensuring that! An agreement tolower than coupon a computer report is'\ restructure therate: Industrial generated covering debt of lFCI has
j Financial Corporation all investments, and: been arrived at in :of India {IFCI} has made available to the subcommittee ofpaid interest on 3fd Corporate Centre to Central Soard ofApril 2003 and 21st ensure proper :,Trustees,EmployeeApril 2003, which reporting to Ef>t=Q._~_pi.()~L<!ent Funcl!
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_. ~_._. ------:~----:------~---t-=-=--~-----:---26 / 8 I In caseslisted in audit We have -noted to .SBl has been(ii) report delaysin receipt follow up in cases advised to follow-
of interest occurredon where large amounts up the matteraccountof following: - I are involved atisill9 I vigorously. The i
. lout of delay in I State Bank ofa) In certain cases receipts of payments,. I India has not
I there are delays in W . for l nt its ii receipt of interest e are arrangmg or givenamount of Non- SGL transferidemat of the observations onsecuritiesas compared securities - wherever the specifiJ -to duedate. such facility is instances of !b) Sometimes the available to ensure delayed receipt of ,
pertains to financial- .veae. 2001-and .2002.-
respectively.However interestreceived on 21st April2003 is received atrate of 9% instead ofcoupon rate. Thishas resulted intoshort receipt ofinterest amountingto Rs. 29,56,18,595.The monthly interestwatch & interestreceived reports arefiled separately.However, monthlyinterest watchreports for SGLsecurities were not
I available for ouri verification for theI months of April,
I,June, September,November, and
1 December 2002 and; also such reportscannot be generatedafter the monthlyupdation in oldsystem. Computersystems beconfigured to giveinterest short receiptreport to facilitateeffective interest: collection monitoring
especially formed:------------.-- . for negotiations. ~
However PortfolioManager shouldfollow up
I vigorously thecollection of allreceivables in timeat the coupon rate T
i S6I be advised to, upgrade its system
and submitinterest shortreceipt report to I
;
EPFO everymonth.
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delays are on accountof interest warrants-being received aspayable at· placesother than Mumbai.c) In few casesback office has lodgedthe securities with itsbranches for interestcollection for whichSafe Custody Receipt(5CR) are issued to561 (back office). Onthese cases interest iscollected atrespective branchesand later onforwarded to Mumbai,which results in delayin collection ofinterest.d} We have alsoobserved delays inreceipt of maturityinterest amount ascompared to maturitydates.e) In case of
I acceptances theI delays in receipt of
interest amount asexplained to us aremainly due toprocedural formalitieshence we have notreported such delays.
interest. However,!1h~~?e$Qf~el.ay: lin receipt of iinterest andmaturity proceedsare regularly takenup with the StateBank of India toensure adequatefollow up andrecovery ofoutstandings.
timely receipt of\
interest.We are ~gularIyfollowing up With therespective COrflpaniesfor overdue interest.However , responseshave not! beenforthcoming in! manycases. We! arestepping up lourfollow up mechanismin this regard.
27- 28 I9.0.0
(i) Delays in receiptof maturityproceeds:In certain cases·detays are observedfor receipt ofproceeds ascompared to due· dates. As explainedthe reminders forclaiming the penalinterest were sentbut the same werenot available for ourverification titl 4th
: Aug 2003.(ii) Maturity
· outstanding Report:____ --L __ Li-=-T.:.:h-=e-"m.c..:-=a_t=-=u~itydue but
The Strabus Systemoutput in regard 'to.outstanding interestreport is being reliedupon and is put toincremental use, dueto present practice ofproperly enteril1gmasters. Suggestionregarding configuf-ation has been takenup for consideration',.We are continuouslydiscussing the matterwith Strabus
The PortfoliOManager to followup vigorously thecollection of allreceivables in timeat the coupon rate
Representative '(System providers) to'!resolve the matter.,It occurs to us that
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III
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not received(outstanding) reportis prepared manuallyat the end of eachmonth on the basisof watch report.Presently this reportis not availablethorough both (oldand new) system. Asexplained the sameis underdevelopment for newsystem.(iii) Systemobservations:
(a) The maturitywatch report of oldsystem gives thematurity amount atface value even
I thou~h maturity is atI prerruum.!
(b) The put call andpart redemptionreport generatedfrom old system donot give the detailsof EPFOAccount No.
(c) The old systemgenerates the- partmaturity report, !which has columns;such as script!
I details, face value,:% and amount. The ipart maturityamount at the time .of first due date is:
I.
calculated correctly;as a % of face value. :However at the time :of subsequent . duedate the system
: calculate value as% iof reduced face!value instead of Iinitial face value Iwhich is incorrect.
the new sy~em cantake care of the freshentries. However,the existing .rnasterscannot be mo~ified aschange in these fieldsmay affect th~ otherdata in the sy~tem.Due care ytill beexercised i whilekeying in the (jata inthe systemThe follow up i~ beingdone on a liegularbasis with focus onlarge amounts andlonger periods ofdelay.
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I lO.{i) &(ii)
This needs to berectified in order tohavecorrecf fund~-position.(d) Presently the putand call watch reportis available in boththe systems. The5BI (back office)may forward suchreport to EPFO toenable them tomake decision forexercising putoption.(e)The referenceI documents ofmaturity proceedssuch as letters,counter foils are filedtogether withinterest documents.The supporting inregard to maturitymay be filedseparately for easyretneval.
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(f) The maturitywatch reportprintout should betaken after updationat the end of eachmonth to trace theacceptance cases !entered i
, subsequently. IWe have scrutinized Amount of commls- 1Amount of Ithe deal ticket wise sion refunded. SB! I commission has Itransactions fee stated as under: ! been refunded. ,Irecovered on the "We have taken uj? Further 5B! has i
basis of face value of the matter for been advised to!investment. and ascertaining the refund Rs. 25603/-noted that in some position to be on account ofcases the followed up fo~ service tax too.transactions are refunding the Servicemade in same Tax. .' iaccount for same We are informed that, I i
security at same ServiceTax cannot be -j ;
rate and on the refunded at this late :_same day with same! stage." II
. Counter Party but for
,"'"which 20r 3 deal I I
--_._-----" -~t-- !i~k~ts _~re·Jrr~Qaredj
. ----
instead of one dealticket. This hasresulted into higherrecovery oftransaction fee.The transaction feesrate was reduced on ()-23rd May 2002 withretrospective effectfrom 1st April 2002.
:
(Refer letterNo.Tr/PMS/296 I
dated 13th May2002). As a result ofabove retrospective
~effect S6r made arefund of Rs.5,12,060 on account Iof excess feescharged earlier.However whilecalculating therefund amount SBI Ihas not consideredservice tax @ 5% on
Iexcess amountrefunded whichamounts to Rs. rl 1
25,603.29 - 30 The SBI (back office) The matter is being SBr be advised to
/11.0.0 has neither received taken up with the take effective
TDS certificates nor higher authorities. of steps to arrange
refund amounting to respective Companies for balance TDS
Rs.99, 68,738 of for obtaining lDS certificates for
which Rs. 51,30,456 certificates. claiming refund
, pertains to SAIL. As from Income Tax
I informed the follow Department.I up for the same isI now been done by I
I Regional Provident Ii
I Commissioner Office! New Delhi is now I! doing the same.
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As per the practice Tout of the 24 cases SBI should monitorfollowed by .SBI . polnted. out, by the incentive(back office) the IAuditors tncenttves receivable through I
incentives are I have been reK:.eived in Strabus System Iaccounted as & 11 cases. for the and furnish.when received. ! remaining fqllow up monthly report to!
. Ii being made.' . EPFO. SBJ should ii. There IS a ensure timely iconsiderable delay The Strabus \System recovery of iin receipt of generates the incentives. Iincentive in S3 incentives re¢eivable : II
! cases as compared I report. Follow\ up ini to the date of regard to outstanding, mvestment made. cases is beingln. Incentives maintained.I amounting to Rs.I,:. 3,30,93,000 for year
under audit areI outstanding as! verified by us on 17:h
i June2003.,II. An old system, does not generatethe, incentive receivable
report, as suchfield is !not provided in the Isystem. In theabsenceof which the
; follow up of the samei becomesdifficult.
As explained tous the incentivereceivable in case ofState Developmentloans cannot bedetermined inadvance.
iv.
31 / I13.0.0 '
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i. It is observed Reminders are Maximum overduethat in most of the regularly sent to the interest is oncases Over Due issuers. However, as account of pendingInterest is .not receiv:d suggested by the debt restructuringfrom the Issuer. TOlal t- uditors focucced of IfCI. SmallerOver Due Outstanding _ ~.,' .up to 31st Mar 2003 is : artent.on WIll be glv,enRs. 3,66,70,514.88 ! for hi.gh valipeThe auditors further outstanding.reported: "We have Inot considered 1outstanding over :
, due interest amount Iless than Rs. 1000 & I
outstanding period:less than 2 days. I
! Saturdaysl Sundays I
III
amounts are notlikely to bereceivable andmay be on accountof postal delays /holidays / clearingtime. SBI may beadvised to focus!on amounts·exceeding Rs. i
50000/-1
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; and Holidays are'iqnored.)
,-31 /14.0.0
, (i) On~verification ofthe "Daily Fund Flowstatements" we havenoted down the dayson which eventhough funds areavailable noinvestments havebeen made whichresults into idlefunds. For the. purpose of ourAnnexure we haveconsidered minimumbalance of Rs 50lacs.(ii)On theverification of fundflow statements forall accounts we haveobserved that thesystem printoutshows the difference: between previousdays closing and,next days openingi balance form 18th
Feb 2003 onwards.However if the sameis viewed on thesystem there is nodifference isobserved. Also theabove discrepancy iscontinued till 31st
March 2003.Nosatisfactoryexplanation wasgiven for the same. ,
(i) Though I,no idlefunds are to \be keptin the accounts themarket dynamicsforce us to hold on tothe funds untili we geta better opp~rtunityfor investment·'1
5Br be advised tostrive harder forparking funds inTreasury Bills,FDRs and in Repomarket to avoididling of funds.
(ii) The lacunae in thepresent system hasbeen taken care of by5trabus.
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32 I In case of 5DS 31 We have takert up the The SBI (back
" 15.0.0 9ated 2~ Dec 2002 matter with _?Yp9J~Je office) should give---- ..-~ -" -"- ---
for K.R.Mills EPF Bank. I yearlytrust, the amount i confirmation of
I
transferred as per SDS balances outAnnexure 8 is Rs.54, of its books of
1285. However as per: !accounts.
the SDS passbook ofSyndicate Bank Of,', Mysore the balanceof Rs. 53,498 isshown. Thus there is'excess transfer ofRs.787.
Presently there is nopractice to receive;any confirmation;available for the SDSbalance availablewith RBI. I
32 / i. SBI has No comments. SBI be advised to
16.0.0 prescribed the comment on
quorum for auditors remarks
authorization of and show the
investments to be records to auditors
done on behalf of in the next year.EPFO. As per whichthe investment
I' above Rs.l0 CroresJ s-
"-, should beauthorized byquorum, of 3
, members. Howeverin 25 cases theinvestment above
, Rs.10 Crores have, been authorized by, quorum of 2
i members.Iii. In some casesI as referred to in the
I Counter Party Deal,I
confirmations and i
I I I1
I broker notes were 1,, I ! not available. I, Iii. In some casesii I the maturity dates,i interest dates, deal,
~ I ticket number and; YTM (Yield to
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Maturity) wereeither not enteredor wrongly entered.iv. In one caseinvestments notewas not available for
lour verification.v. In 2 cases dealticket reference wasnot recorded on theinvestment notesand hence dealtickets could not be
I traced.vi. In certaincases the details,as per investmentnote and dealtickets were notsame.
vii. Some of theinvestment notesand deal tickets
I were cancelledI during the period butj the reason forcancellation was notmentioned on thesame.
We have taken up thematter with theStrabus Systemproviders for gettingthe desired reportsfrom the system andthese reports are nowbeing generated.However the sameare being subject toscrutiny and crosschecking.
S6I must upgradeits system forproper controls.
I i. We haveI observed that evenI though the variousI reports arei available in the! Report module,'they are notgenerated from
I ~ont end. As andwhen required suchreports aregenerated - fromback end bySystemAdministrator. Alsothe completenessand reliability of thereport are not yetsatisfactorilyestablished.S8! (backshould tryfollowing
We have alreadytaken up the matterwith NSDL forproviding the facevalue in the Demat!Statement. We have!
The advised strabus ioffice) system Provider to Ito get· make the necessary Ireports chances.
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, .."accuracy at earliest
------ .- ..---- -- -- --- ---~;
, • PartMaturity Report• MaturityOutstanding report
\ • InterestOutstanding report• Primary
: and Secondary('! S.ubscription I
i
C' However the
tinterest and
, maturity<, outstanding and
Primary i
C Subscription reportiI
were made Ir available to us bysystem !
( Adm~nistrator fromback end.
!,
(\ ii. The Holding I
Statement fromI( new system is not
( \yet been completely !implemented for i
\ Non - SGL I,securities.
iI
( )iii. There is no Iprovision in new I
\system to record the
1
, number of units
Ipurchased. Thiswould facilitate the
;
I Demat reconciliation,
! as Depository, (NSDL) Demat -, I Statement is
available in unitwise.
,
iv. The provision
! should be made inthe
!t new system to
I generate InterestI and Maturity Short
.- I Receipt report .
I/ v. The maturity and!I
L----
rr:c(\
interest outstandingreport gives the--~~---------------.:::~+--~----~------~------------ -outstanding amountwhich was due butnot received in aparticular year anddo not considerprevious years' duebut not received.The same should beconfigured in thesystem.
34 /18.0.0
monitoring overpending cases foracceptances.It is also observed ithat the registrationof securities takes
J
considerable time Iwherein the interest J
or maturityproceeds dueremain untracked.The -computerization of
I the same would
I track such cases formonitoring.
5BI must upgradeits system 'for!proper controls.
Regardingacceptanceswithdrawals: -
The program needs to& be suitab1y
developed. We havealready taken up thematter with 5trabusRepresentatives.
The monthlyreports sent toEPFO are preparedafter manuallytracking down thedeta ils fromregistersmaintained.The 5Br (backoffice) maycomputerise theacceptancestransactions fromthe stage of receiptof documents. ThiSwould facilitate
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Audit Report will be placed on the table, as andwhen required.S8Xbe advised to takerequislteaction asstale,fin-------the auditor's report and pointed out, above asremarks of EPFO.
Matter is placed consideration of Finance &Investment Committee.
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Item No.7 ~ele~i~n of Investment Consultant to conduct study for,dentlfylng new avenues for investment of social security fundsand to establish a road map for investment after studyingnational/international best practices. .
1. Further to decision taken in the 73rd meeting of the Finance& InvestmentCommittee held on 14.10.2003 (Item no 6) to engagean agencyof internationalrepute on' competitive basis for investment consultancy, an open tender wasfloated and advertisements were placed in leading national newspapers on30.01.2004 inviting bids for study for identifying new avenues for investment ofsocial security funds and establishment of a road map for investment afterstudying national/international practices.
!
2. A tender processing committee (TPC)consisting of the following offlclalswas constituted for this purpose:
1. Shri K.L.Taneja, RPFC(Investment)2. Shri Jagmohan, RPFC(Project)3. Shri.P.K.Aggarwal, RPFC(Examination)4. Shri S.M.Sharma, Dy Dir. (Vigilance) ,
3. The following agencies respondedto the above tender:
1. DeJloitteToucheTohmatsu India Pvt. Ltd., NewDelhi2. AF Ferguson& Co. Mumbai3. Watson Wyatt India Pvt. Ltd., Gurgaon4. Hewitt Associates,Gurgaon5. Mercer Human ResourceConsulting Mumbai6. ICICI Bank Ltd. Mumbai
4. The members of the above TPCopened the technical bids ON 13.02.2004and Finance and Investment Committee considered its report alongwithpresentation made by the bidders on 03.03.2004. Finance and InvestmentCommittee decided as under:
After detailed discussions and deliberations on the contents· of thetechnical bids and the presentations made by the Bidders, the Committee shortlisted the followtng bidders subject to removal of the minor deficiencies in thetechnical bids pointed out by the Tender ProcessingCommittee. .
,
1.2.3.
M/SDeloitte Touche Tohmatsu India Private LimitedM/s Watson Wyatt India Pvt. Ltd.M/s Mercer Human ResourceConsulting
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The Committee decided that technical bid of MIs WatsonWyatt India Pvt.Ltd. should be signed by appropriate authority. It was also decided that BalanceSheet for the last 3 years, auditor's certificate, income tax clearancecertificates,roles of consortium partners and the main bidders, self declaration by theCEO/CompanySecretary in respect of clearanceof all dues under EPF& MPAct, '1952 may be obtained from the short listed bidders. It was further decided thatthe short listed bidders be advised to revise their financial bids downward. Thecommercial bids of short listed bidders be opened within a week's timethereafter. The comparative chart of the financial imp1icationsbe prepared bythe Tender ProcessingCommittee. The selection of the lowest bidder be placedbefore the Finance & Investment Committee for consideration and approval byway of circulation.
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5. Financial Bids were opened on 26.03.2004 afterglvlOg sufficientopportunities to the bidders for removal of deficiencies in the technical bids.However, the aforesaid three shortlisted biddersare the Indian Arms of differentmultinational firms. The bidders (Indian Arms) do not have the required annualturnover of Rs. SO crores during the years 2000-2001 to 2002-03. They also donot have aggregate income of Rs. 25 crores from investment consultancy from2000-01 to 2002-03. All the bidders qualify these criteria if the turnover andincome from investment consultancy of their holding companies/associatefirmsare taken into account. In view of these facts criteria of selection requiredslight modification. Finance and Investment Committee may ratify the relaxedcriteria for selection of the consultant as mentioned above, to avoid furtherdelays.
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6. Subject to relaxation of the eligibility criteria by the Final'lce andInvestment Committee, 'rendersrocessinc Committee (TPC)openedthe financial
, bids as advised. Minutes of the meeting of Tender ProcessingCommittee foropening of the financial bi-dand comparative chart prepared by it are enclosed.Mercer Humen ResourcesConsulting India Pvt. Ltd. quoted the lowest rates forthe requisite study amounting Rs.33,54,156/- mcluslve of service tax amounting
'.Rs.248,456/- details of which are given in t!:le report of TPCalso. However, thelowest bidder has been asked to further reduce the rates and the outcome willbe reported to the Committee in due course.
(
Matter is put up for consideration of Financeand Investment Committee.
2-
TenderNo. FACAQ - 2(1) 2004
,/"
" ~ ,~\ \~ ~ ~""':~ 1 1 '-yO) '} ') )) 'J ')
'3>\. 1--'-"". S\ ~~.) 6~~'SS~
COMPARATIVE STATEMENTw.r.t FINANCIAL BIDS RECEIVED IN RESPECTOF TENDER No. FACAO-2(1)2004
RegardingSTUDY FOR IDENTIFYING NEW AVENUES FOR INVESTMENT OF SOCIAL SECURITY
FUNDS AND ESTABLISHMENT OF ROAD MAP FOR INVESTMENT. ,
) Z)1-/
Commercialdeviations withreference toTender document
Deloitte ToucheTohmatsu India Private IWatson WyattIndia Pvt LtdLtd, New Delhi. Gurgaon
Merceb'r .Human Resource Consulting
Mum a.51.No.
PARTICULARS
Rs 68,01,843/- plusservice tax @8.S%which Is Rs 5,78,157/-(Total Rs 73,80,000/-)
Rs 1,17,56,250/- excludingdisbursements and service taxapplicable at the time of billing.
Rs. 31,05,700/- plus service tax as perGovt. Rules which is Rs. 248456/-(Total Rs.33,S4,is6/- )
~
i. Cost of servicesoffered.
ii.
'/,
No deviation.
(h~~R.P.F.C.(EXAM)
(a)The consultant has requested forinclusion of an additionalsubclause no. 14.3 In clause no.14 of Section IIIof the Tenderdocument regarding as detailedbelow:-Notwithstanding the other terms ofthis contract, if any of WatsonWyatt's services do not conform tothe requlrernents of these generalterms and a~QQlicable};,s~.
DV DIR (VIG)
Para 8.1 of tender document providesas under:The client shall make payment onlyafter submission of study r~port byconsultant on all issues spe~lfied inSchedule of Requirements to tile entiresatisfaction of the client or any otheragency nominated by him. However,the payment to the consultant will besubject to the Tax Deduction at sourceas applicable in the case of the
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(JA~'~~N)R.P.F.C( PROJECT)
~id .. 2.
i(fJI
Tender No. FACAO - 2(1,) 2004
No.PARTICULARS
_ 2 ...
Deloltte ToucheTohmatsu India Private I watson WvattIndia Pvt LtdLtd, New Delhi. Gurgaon
Mercer Human Resource Consu',tlngMumbai
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engagement letter, the client shallnotify Watson Wyatt promptly andWatson and Wyatt shall reperformsuch services at no additionalcharge or, at Watson Wyatt's option, shall refund the portion of the feespaid with. respect to such services.If reperformance of the services orrefund of the applicable fees wouldnot provide an adequate remedy fordamages arising from theperformance, nonperformance orbreach of these general terms andany applicable engagement letter,Watson Wyatt's maximum totalliability, Including that of imyemployee, affiliate, agent orcontractor, relating to Its services,regardless of the cause of action,will be limited to direct damages inan amount not to exceed the feespaid by the client pursuant to thisagreement during the one-yearperiod Immediately preceding theevent to which such liability arises.The foregoing limitation of liabilityshall not apply to the extent thatany liability arises from the grossnegligence ~ willful misconduct of
consultant under the I.T Act, 1961.Consultant desired following terms ofpayment:1. The fees are exclusive of any localtaxes that might be applicable to theproject fee. The service taxes andother taxes if any shall be eppllcable atthe time of invoicing.2.' Our invoices are payable onsubmission of the Invoices. All delayedpayments exceeding 30 days shallattract an Interest of 7% p.a. inaddition to the principal fees.3. Schedule of Payment: Invoices shallbe furnished to EPFO at the end ofeach Phase in proportionate amountsas Indicated.4. Expenses: Our fees are inclusiveof travel, Boarding and lodging asmentioned Para 2 of page 2 of thedocuments attached to the FinancialBid.
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Watson Wyatt, Its employees,affiliates, agents or contractors or'from bodily Injury, death of anyperson, or damag to any real ortangible personal property. Neitherparty shall be liable for any Indirect,special or consequential damages.(b) The consultant has sought thefollowing changes to the paymentschedule speclfled In clause 8 ofsection III(page23}of the Tender document :Upfront: 200/01week from receipt ofmandate letterEnd of 1atMonth: 200/0Endof 2nd month. :20%Endof 3rd month :200/0On submission ofcomplete report to thesatisfaction of client:20%
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As specified In attachment toTechnical Bid for Investment study
iii. I Deviationsthe termsreference
from I As specified Inof attachment to Technical
Bid for Investment study
Scope of work with reference toschedule of requirements have beenexplained in attachment to TechnicalL- __ L-__~ ~~ ~ ~ ~B~I~d~ro~r:__~in~v~es!~entstudy (CoPY
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~ renner No. FACAO - 2(1) 2004
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SI. Deloltte Touche watson Wyattlndla Pvt LtdNo. PARTICULARS Tohmatsu India Private Mercer Human Resource Consulting
Ltd., New Delhi. Gurgaon Mumbal
I enc:losed). The firm has proposedthree meetings in New Deihl.Additional meetings or workundertaken at the request of EPFO Inaddition to that specified In"Attachment to Technical Bid forInvestment Study" would beconsidered outside the scope of theassignment and would not be includedIn the price quoted.
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RCcommendatiqns:
Thelowest bid ofMis Mercer Human Resource Consulting Private Limited is recommendedfor acceptance.
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Proposed Scope of Assistance
In this section of our proposal, we outline our proposed scope of:advice for the threephases of the project as outlined in the Terms ofRcference.
Phase 1 -Improvement withIn the extant pattern of Investment
As outlined in the Terms ofRcference, this pbasq oftheprojcct isintcnded to cover:
• To suggest methods for optimizing the investment performance within extantpatle,." ofinveslmelJl.
• To suggest methods for optimizing the investment peiformance by finetunlnglclumges 10 the extant investment pattern.
• To suggest methods for minimizi~g idle fonds... -
Our understanding is that the investment of the EPFO's assets is cuaently restricted tofixed income investments issued by Indian counterparties, including both central andstate governments. The actual investment management of the assets, within guidelinesset by the aPFO in accordance with the investment JeStrictions, is undertaken by State~ of India ("SBIj.
For purposes of the description of scope provided below, we assume that permitting aportion of the assets to be invested in equities or permitting some oftbe fixed incomeassets to be invested offshore would not be regarded as "fine tuning" and wouldinsteadJall under the "radical changes" to be addressed under Phase 2.
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Our proposed approach is as follows:
We propose to commence the project with a strategy session with EPFO to reachconsensus on the goals and parameters for the assignment. This sessionwoul~ coverall phases within the project. but with specific reference to Phase I, the focus of thisstrategy session would be:
Deftne ObjectIves.EPFO'a ••••••••••• ••••••••••••••••• CIIIIG• EPFO'a.....-ctltDCMh ••1quIdIw. • •• ,mM1l
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Stage Two: PreparatioDoflditialReport
Following the strategy session, .wewin prepare our initial feport. This report willcover:
• A discussion of possible approaches that could be pursued to enhance returnswithin the .ameotinvestmeot restrictions. For·instJnce. subject to the outcome ofthe Strategy Session. such approaches might encompasS:
- the extent to which the current guidelines issued to SBI could be widenedwithin the terms of the current investment restrictions and witbinEPFO's risktolerance; and
- the extent to which outsourcing some of the investment management toexternal asset ~ement companies might reasonably be expected toenhance returns.
• Review ofEPFO's procedures in relation to cash -andliquidity management, witha view to recommending changes to those procedures to minimise idle funds.
• We would also provide as part of the basis for the discussion outlined above, anefficient frontier analysis for the Indian fixed income market, for purposes ofwhich forward-looking assumptions about the expected return, risk and crosscorrelations for various sub-classes of Indian fixed income would be developed.
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hree: Discussion ofInitial Report
the EPFO has had the opportunity to consider our initial report. we would thent with the EPFO workilfg group to present the results of our investigation and
iscuss the report and its implications. This meeting would also identify any otherissues that may need to be investigated further.
Stage Four: Preparation of Final Report
Following the meeting and once any other issues have been identified, Mercer willfinalise the report in respect of Phase 1.
Phase 2 - Suggestion of Road Map for Investment with Rad~calChanges in the Investment Pattern
As outlined in the Terms of Reference, this phase of the project is intended to cover:
• To identify emerging trends in investment management of social security funds.• To establish a road map for the-nex: 10-J5years in respect of investment of social
security funds by identifying National/International best practices and also toestablish benchmarks for investment of EPFo.
• To establish benchmark for investment pattern, investment management.investment guidelines and investment processes after studyingnotional/international best practices.
• To specify design of portfolio structure and exposure normsfor each category ofinstruments.
• To suggest methods of identification of risks and to indicate the approaches forriskmanagement and controls.
The above scope for this phase of the' project covers a wide range of possible subjectmatter and issues that could be considered in developing a road map for the EPFO. Inthis regard, our general approach will be to cover the following main areas:
• Leveraging our global resources and day-to-day involvement with social securityfunds around the world, we wilIdiscuss the emerging trends we see in relation tothe investment of social security funds, including
- Asset allocation trends;
Foreign investment trends;
- Outsourcing trends; and
\<Iercer Investment Consulting 31
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/,Con.ultlng Service. Employees Provident Fund Organisation
- Participant choice trends
/
One input to our findings and recommendations in this connection willl¥ thesurvey Mercer ~y conducted of common and best practices among nationalfunds globally. a copy of the basic questionnaire for which is enclosed inAppendix C for your reference. To date, we have received responses to thissurvey from 30 national funds, and the survey is still ongoing. Another input willbe the findings from the Mercer Global Investment Forum Conference on NationalFunds held in December 2002 in Singapore - the agenda for that conference inincluded in Appendix D. Mercer will leverage the connections formed withnational fund representatives through these two initiatives and by other means toupdale98P~8Sappropriawbeforereporting out to the EPFO on currenttrends.
We will also discuss the potential application of these trends for tlie EPFO.
• In relation to the establishment of'benchmarks, we will initially discuss.theidentitkation of possible investment objectives. In the absence of clearly definedobjectives, it is difficult to establish meaningful benchmarks. Typiea1lyforpensiOn/provident funds, tbeseobjectives are expressed as a target real rate ofreturn (and potentially an acceptable degree of uncertainty of actual results aroundthat target) that the fund aims to achieve over time. The achievement of theseobjectives will be one performance benchmark for EPFOto assess. In addition. inline with global best practice, we would also examine possible asset allocationbenchmarks. These will include varying allocations to equities and fixed incomeand varying exposures to investment offshore. Our analysis will highlight therisk/return characteristics of these alternatives, based again on an eflj.cient (mntieranalysis based on forward-looking assumptions about the expected returns, riskand correlations for various classes of investment.
• Mercer's asset allocation report for the Guardians of New ZealandSuperannuation, a copy of which has been enclosed, provides an example oCthelevel of analysis that would be appropriate if near tenn implementation of radicalchange were deemed practical. The efficient frontier analysis provided by Mercerfor the EPFO's current purposes will be similar in nature, but the assumptionsutilized by MercerwiU be explained and justified more simply, rather than at theexhaustive level of detail that was appropriate for the Guardians.
In addition to performance benchmarks for the overall portfolio, we will alsoadvise on the benchmarks to be considered for each category of investments. Thisdiscussion will also outline the key guidelines that would be applicable for eachcategory and possible portfolio structures.
•
• ~jndicated above, we understand the assets are presently managed on EPFO'sbehalf by SBI. As the investment pattern is expanded and the categories of
Mercer Inveatn»nt Conaultlng 32
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7 of both 'return enhancement and risk management tbroughthe appointment of. external asset management companies to fulfil certain specialist roles within the
I overall structure. This will particularly be the case with foreign investment, but.' may also be the case with domestic assets. particularly equity. Our report will '
discuss these issues in detail.
Employees Provident Fund Organisation
• Finally, as indicated above, there is an increasing trend towards providingparticipants with investment choice. even in eentralised provident/social securityfunds. This situation largely reflects the diffICultiesand political risks associatedwith attempting to derive an investment return that satisfies the multitude ofdifferent needs of participants. That is. if EPFO takes exactly the right level ofinvestment risk on average for participants, they will either take too much forabout half the participants, or too little. depending on whether the markets movesup or down. In this regard. Singapore is often criticized for providing too Iowareturn on CPF notional accounts, while at exactly the same time the EPF inMalaysia is often attacked for taking too much investment risk in connection withI;PF notional accounts.
Having discussed the issues relating to each of the above areas and their possibleapplication, we will then summarise possible implementation of them for EPFO interms of a draft road map.
Summary of DeUverables:
Our report and presentation for this phase of the project will develop a road map forposmble expansion ofthc investment structure of the assets in relation to the specificissues discussed above.' This road map and the various elements that will go into it. will then be discussed in our presentations toEPFO as an input to EPFO developingits vision for the future.
Phase 3 - Governance Structure and Evaluation of InvestmentManagement
As outlined in the Termsof'Refereeee, this phase of the project is intended to cover:
• To study naliona/lmlerna/;onal best practices of managemetu and Governancestructure forportjolio investment and to suggest a suitable governance structure,prudential norms frame work, arms length principles, code of ethics, etc.
• , To suggest criteria and procedure for populating the Finance & InvestmentCommittee.
• fo consider internal capabilities for investment and to suggest methods ofcapacity and capability building.
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• To suggest methoils and meanslor performance measurement olinlernt1lmanagers/portfolio managers. .
• To suggest modalities for evaluation of investment portfolio.• To suggest reporting standards. structures and periodicity olin/ormation
dissemination.( ,
In the discussion below. we have separately outlined our proposed approach for thetwo aspects of this phase of the project.
Governance StructureI ,
The governance structure part of Phase 3 focuses on pension fund governanceincluding control mechanisms, monitoring systems, and auditing and reporting. Assuch. this requires: '
• identification of best practices for global pension fund governance;
• assessment of the current status of govcmancc ofEPFO's programs;
• identification of major gaps between the current status and best practices; and
• an outline of recommendations for change.
For the governing committee and staff of EPFO. Mercer will establish best globalpension fund practices, assess the CUll'entEPFOstatus, determine the major gaps. aridoutline recommendations for change. ,
Based upon our eurrent knowledge, the following issues will be reviewed fot thegoverning committee and staff., As we learn more about the current arrangements, wemay need to modify this work plan.
Independence
There are a number of ways to define independence. For the most part. they are, translated into pract.ic8l'action. Therefore. the following elements would be reviewedfor the governing committee:
• appointment process for governing committee members;
• appointment process for chair of the governing Committee;
• selection criteria for committee members. including experience/expertise required;
• e term of committee members;
• removal of committee members;
Mercer Investment Consulting 34
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• committee size;
• time commitment required of committee members;
• staff support for committee members;
• remuneration of committee members for time spent;
• training and education provided to committee members;
• ability to meet and frequency of committee meetings;
• committee meeting process and governance;
• role of applicable government agency, if any, ill operations and governance of thefund;
• source of operational funds and budget for the fund;
• clarity of roles and responsibilities of committee members;
• clarity of roles and responsibilities of staff;
• legal representation for the fund and governing committee members; and
• legal status of the fund and committee members.
Prudent Investment and QJ!eration
The following elements would be reviewed to evaluate this area:
• governing charter;
• definition followed (e.g., prudent layperson, prudent expert);
• process for changing the governing charter. with special attention to theeaseldifficulty of change;
• operational implementation, including the process undertaken by the governingcommittee for review and evaluation of investment and administrative actions; and
• application of the rules of prudent operation to the governing committee, staff andoutside contractors such as money managers.
Mercer Investment Consulting 35
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Public accountability
There are a variety of ways to establish public accountability. As in each other area,Mercer would review the current status against global best practice benchmarks.Methods to be reviewed inclUdethe following:
• public governing committee meetings, publicized in advance and accessible inboth location and time;
• public participation in meetings;
• public access to documents;
• written public record of actions taken, reasons therefore, and, if applicable,recorded votes of individual committee members; and,
• regular written reports on fund status and actions taken.
Ethical conduct
To a large extent, ethical conduct for the governing committee members and staff of apension fund involves avoiding conflicts of interest. Mercer would review thefollowing elements:
• governing charter and other regulations;
• definition of conflicts of interest, including perceived conflicts;
• disclosure rules, such as: timeliness, details required, public reports, andenforcement of disclosure;
• avoidance rules, such as: refusal from participation in decisions andimplementation, prohibition of engaging in transactions, limitation to engaging intransactions with independentapproval; and,
• actual implementation of the conflict rules.
Summary of DcUverables:
, .
Our report and presentation will identify gaps between current EPFO practice and theglobal best practices for public pension funds. This report •..••ill includer~mmendations for changeconceming:
• Governance structure.
• ~Jnlernal controls. AssW'CS that EPFO has identified major controls as well as•processes to minimize business risks of managing large investment portfolios;
Mercer Investment Consulting
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~l4diting. Identifies major gaps between current audit practices and global bestpractices; and
Reporting. Defines the elements of global best practices reporting for EPFOmanagement and the independent committee.
E,(aluation of Investment Management
In relation to this partofthe.project, we understand that EPFO wishes to strengthen itsfinancial management capability as part of the preparation for the ,implementation ofthe old age program. With the formulation of investment policies and procedures, theimplementation of the plan for managing the assets willrequire development of:
• staffing,
• skills,
• organization,
• infrastructure,
• investment management process,
• information resources,
in a programme designed to support the achievement of the strategic objectives of theEPFO.
The recommendations will be framed in the context of local custom and practice inIndia and in a manner consistent with civil service regulations. The broader context of
(' ~ currenteconomicenvlronment and the requirements of developing eapital.markets
- I' would also have a bearing on the recommendations as to the nature of the ~mg an~skills that would be most appropriate.
In achieving the above objectives, the scope of this part of the assignment wouldcover:
• Review of the implications of different approaches to the management and controlof the EPFO investment portfolios (i.e. different forms of both external andinternal management) for future requirements with regard to organization,capabilities, functions and staffing;
• Assessment of current 'staffing, skills, organization and capabilities in those areasrelevant to the required investment functions;
• Analysis of gaps between the current status quo and the desired position, in termsof bot}l EPFO's objectives and constraints, long term and short term, and in the
Mercer Investment Consulting 37
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context of Mercer's experience of best practice among those with fiduciaryresponsibility for the management of assets around the world; and
• Recommendations of a plan for implementation, including outline of trainingregime, appointments required, hiring, outsourcing and information databaserequirements.
The methodology is set out in detail in below. As well as being well-placed to fulfilall aspects of the briefset out in the Terms of Reference, the distinguishing features ofMercer's approach would be:
Interactive. We will seek the input of a wide range of EPFO staff, management andother interested parties. enabling us to immerse ourselves in the organization anddevelop a deep understanding ofEPFO's operational capabilities and culture. Ourexperience demonstrates that there is no single correct solution to the structuring of aninvestment function. Any solution involves tradeoffs in identifying the optimalapproach for any given organization. In particular we would work closely with theEPFO project team, so as to ensure ownership and continuity once our involvement iscomplete.
Practical. As a consequence of the first-hand experience of the meulbers of the teamin managing retirement scheme assets, together with the interactive working sessionswith EPFO, our recommendations will be practical, realistic and workable.
Focused. Mercer has an up-to-the-minute understanding of the organization of and.requirements for managing pensionlprovidentfund assets, best practice investmentmanagement procedures and fiduciary requirements. Specifically, as indicated by thecase studies citedearlier, we have worked on numberous assignments reviewing andrestructuring the in-house fund management capability with pension/provident fundsand other institutional investors.
The assignment would be organized in six stages as follows:
1. Information gathering
2. Review of r.esponses to information requests
3. On-site assessment and interviews
4. Analysis and preliminary report
5. Feedback. in-fill research and final report
6. FOllow-up assessment
Mercer Investment Con$ulting 38
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• Comparison of models for organization of the investment function based on -comparative caso studies
• Gather data on.training programmes and identify best practice
-. Draft key success factors for staffing
• Collect data from EPFO on current staffing and structure
• Develop template for interviews and framework for assessment
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As part of the analysis of the EPFO's current staffing and structure, Mer=' wouldseek to obtain as complete a response as possible to a detailed questionnaire that willbe developed. This questionnaire will provide general questions aimed at allowing -Mercer to develop a basic undemanding of how investment management is currentlyundertaken by the EPFO.
Stagf( i:Ralew ofRemonse to Information Request
Once the questionnaire is completed. Mercer will review all of the information thathas been provided. Based on our review, Mercer will develop a detailed agenda andlist of Questions for our on-site interviews with the individuals involved in investmentmanagement at the EPFO. The agenda and most of the questions will be forwarded inadvance in order to give the individuals involved an opportunity to prepare theirthoughts ahead of the interviews. Some questions will not be provided in advance..These will be questions towhich-Mercer wants to obtain a spontaneous, unprepared
'answer. In addition, we will obviously wish to ask.follow-up and clarifying questionsas needed during the interviews in order to gain as thorough an understanding aspossible of the issues of interest.
Stage 3: On-site gssessment azrdinterviews
Following Mercer's review of the response to the information request, aMercer teamWin conduct on-site interviews with a wide range of the professional staff, both seniorand more junior, and key support staff.
In the absence of a detailed staffing analysis and organization chart, it is difficult toevaluate the precise time that would be needed to interview all the relevant people, but
,:-we estimate that 2-3 days on-site in New Delhi would be required to complete this.
Stage 4:Analvsis and preliminary report
• Analysis and evaluation of gathered qualitative and quantitative information,, within the context ofEPFO's existing structure and objectives, and
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• Development of conclusions as to the strengths and weaknesses of the cUrren~.organization.
This review would assess all aspocts of the staffing and organization relevant to them8nagement of the assets ofthc pension fund. This would include an assessment ofthe technical clements. as well as of the various organintional issues that impact onthe ctl'ccti.vencss of the investment function.
The review would address both the current position and the requirements for futuredevelopment based on different scenarios or strucnires for managing the investments,as addres~2. Speei&ally the following aspects of the asset managementcapability would be explored and assessed:
• Organizational structure ofthc asset management function
• Management of the function
• People
- - Roles- Skills- Potential
• Investment process
-, Research- Analysis- Strategy and Asset Allocation- Portfolio construction- Risk control
• Data requirements and sources
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• Follow-up interviews if required
• Development of program for future skills development
• Outline discussion of the preliminary conclusions with the project team.
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• .Draft final report
• Final presentation and discussion of conclusions and recommendations
Stage 6,' Follow-up as.,sessment
• Follow-up review of implementation progress
• Consultation on issues arising
• Modification and fine-tuning of plans in the light of experience
Summary of Deliverables:
Our report and presentation in respect of the evaluation of investment managementwill cover:
• Review of the implications of different approaches to the management and controlof the EPFO investment portfolio (i.e. different forms of both external arid internalmanagement) for future requirements with regard to organization, capabilities,functions and staffing - this will largely develop some of the issues discussed inPhase2j
• Assessment of current staffing, skills, organization and capabilities in those areasrelevant to the required investment functions;
• Analysis of gaps between the current status quo and the desired position, in termsof both EPFO' s objectives and constraints, long term and short term, and in thecontext of Mercer's experience of best practice among those with fiduciaryresponsibility for the management of assets around the world; and
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Recommendations of a plan for implementation, including a brief overview of factorssuch as an outline for a training regime, appointments required. hiring. outsourcingand information database requirements.
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Item No.8. Amendment in Para 60 of EPFScheme, 1952to avoid delay in settlement of claims of EPFMembers in case of non-declaration of rate ofinterest in time.
1. The rate of interest on EPFaccumulations has not been declared by the
Central Govt. for the financial years 2002-03 and 2003-04. However, as
per the decision of CBT,EPFthe final claims of the outgoing members have
been settled at the interim rate during the years 2002-03 and 2003-04.ror
the year 2002-03 the interest has been credited in the accounts of each
member at the rate recommended by the CBT,EPFto the Central Govt. For
the veer 2003-04 CBT,EPF had decided to allow settlement of claims of
outgoing members at the composite interest rate of 9.5% to avoid
inconvenience to the retiring/outgoing members.
2. CBT, EPF in its 163rd meeting held on 19th August 2003 recommended
interest at the rate of 9% for the year 2003-04 and an additional il1t.erest.of
0.5% on the occasion of Golden Jubilee of the Employees' Provident Fund
Organisation to all members of the Employees' Provident Fund under Para
60(1) of the EPFScheme, 1952. The Board also decided that an int-erim rate
of interest @ 90/0 and 0.5% bonus interest be paid to all outqolnq rnembers.
Recommendation of the CST, EPF,was sent to the Govemment of India and
its decision is awaited.
According to the above decision "OfCBT, EPFinterim rate of interest was
to be given to the outgoing members. The position about credttlnq the
interest for the year 2003-04 in the accounts of continuing members at the
, time of issuing annual statement of accounts is not clear. As per Para 73 of
EPF Scheme, 1952 annual statement of accounts issued to the members
should reflect total amount of interest credited at the end of the
period/financial year. This task cannot be completed till the Central
Government takes a decision on the rate of interest to -be credited in the
accounts of PFmembers for the year 2003-04. Accordingly annual statement
of accounts for 2003-04 can not be issued till further instructions. However
to avoid delays and to utilize the manpower field offices were directed vide
letter dated 25.3.2004 (copy enclosed) to complete preparatory actlvltles'
such as updation of Cash BooksB, DeBR, Data Entry, Check listing process of
inputs etc. and not to issue annual accounts slips for the year 2003-04 till
further decision by Finance & Investment committee and CBT,EPF.
3. For uniformity, it may be considered to continue to allow interest for
2003-04 to outgoing members @9.So/0 as decided by CBT,EPFafter March
2004 also. It is considered essential to avoid harassment to. outgoing
members.
4. Now the declaration of rate of interest for the year 2004-05 is agaIn due
for which it is essential to project the income & Ilabilities of the un-exernpted
provident fund. While presenting vote on account instead of general budget' i
for the year 2004-05 in the Parliament, Government did not announce the rate
of interest payable by it on SDS in which about 78% of the corpus is invested.
Since general election f-or the Parliament has been notified and the Etection
Commission has enforced model code of conduct, the agenda item on rate of
interest may be interpreted as violation of model code of conduct as it has vide
ramifications and concerns about crores of workers and their families. Media
may also politicize the issue in view of general election.' Bections are
scheduled up to second week of May 2Q04.
5. As per Para 60{ 1) of 'EPFScheme, 1952, the Commissioner shall credit t(
the account of each member interest at such rate as may be determined by
the Central Government in consultation with the Central Board.
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6. Provident Fund claims of retiring/other outgoing members cannot be
withheld just because of non-declaration of rate of interest. Interest will
have to be paid on all claims to be settled on or after 25th April, 2004 in
accordance with Para 60(2)(b) which interalia provides as under:
"In the case of a claim for the refund under paragraph 69 or
70, interest shall be payable up to the end of the month preceding
the date on which the final payment is authorised irrespective of thedate of receipt of the ctelmtrom the claimant concerned."
"Provided that interest up to and for the current month shall be
payable on the claims which are authorised on or after the 25th day ofa particular month along with actual payment after the end of the
current month. "
"Provided further that the rate of interest to be allowed on cleims
for refund for the broken currency period shall be the rate fixed for the
financial year in which the refund is authorised. "
7. It may not be out of place to mention that settlement of claims of
provident fund members in time is the statutory duty under Para 72 (7) which
can not be fulfilled properly in the absence of declaration of rate of interest
under Para 60 (1) of EPFScheme, 1952. Para 72(7) provides as under.- ,
"The claims, complete in all respects submitted along with the
requisite documents shall be settled and benetit amount paid to the
,beneficiaries within 30 days from the date of its receipt by the, ,
· 'Commissioner. If there is any deficiency in the claim, the same shall
be recorded in writing and communicated to the applicant within 30
days from the date of receipt of such application. In case the
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Commissioner fails without sufficient cause to settle a claim complete rin all respects within 30 days, the Commissioner "shall be liable for the (~
delay beyond the said period and penal interest at the rate of twelve rpercent per annum may be charged on the benefit amount and the
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same may be charged on the benefit amount and the same may be I rdeducted from the salary of the Commissioner".
8. It is obHgatory on the part of Central Government and Central Board of
Trustees, Employees' Provident Fund, to declare rate of interest before the
commencement of the financial year in order to avoid delay in settlement of
Claims of the retiring/outgoing provident fund members. Similarly, it is
obligatory under Para 73 (1) to issue annual statement of member's account
showing opening balance, contributions and interest credited to the member's
account. In the absence of any direction of CBT, EPFand non-declaration of
rate of interest by the Central Government for the year 2003-04, work of
issuance of annual account slips for the year 2003-04 could not be started with I
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effect from 01.04.2004. EPFO issues more than three crore account stlps
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every year to the members intimating them the opening balance, contributions
received and interest credited in their accounts. Further EPFOfinally settles
about 1.60 lakh claims per month. The claims for final settlements cannot be
kept pending for tong time. Moreover it will be inequitable if provident fund
members are not given interest at the time of final settlement of claims. It will
cause ,unnecessary harassment to the outgoing members.
9. In the event of delay in declaration of rate of interest if CBT, EPF
resorts to settlement of claims without payment of interest for the relevant
financial year, claims will have to be processed twice viz. once at the time of 1._
final settlement without interest for the broken period and again after
declaretton of rate of interest for paying the interest for the broken period.
Additional cost of servicing about 1.6 lakh claims per month will be very high
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in terms of financial burden. In the present manual & paper intensive system
prevalent in the EPFOthere is every chance that 100 reprocessing of ,11 such
claims settled (without interest at first instance} may not be possibl . This
would lead to unavoidable harassment to the customers as well as to the
concerned officials of EPFO.This will attract adverse media attention and will
spoil the reputation of government as well as EPFO.
10. To resolve the aforesaid problems and to avoid anomaly in the EPF
Scheme, 1952 it will be essential to make a provision in Para 60 itself so that
EPFmembers are not deprived of their basic rights to get their claims settled
with interest on retirement/other contingencies in case the rate. of interest
has not been declared. In view of the above, Government of I ia may be
requested to add foJ/owing proviso after second proviso ?f Para
EPFScheme, 1952 :(
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"Provided also that the rate of interest to be allowed n claims
for refund for the broken currency period shall. be the rate
determined by the Central Govt. for Public Provident Fund (PPF) or
such lower rate as recommended by Central Board of rustees,(
( Employees' Provident- Fund to the Central GciVt.under par.
( . rate has not been fixed for the financial year in which
( authorized and the claims settled under this provision shall b final. "
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11. Para 60 of EPFScheme, 1952 regarding Interest and Section
MP Act, 1952 about the powers of the Central Government to a end EPF
.Scheme, 1952 are encfosed f-or ready reference.·
Matter is accordingly placed before the Finance & Investment Co mitteefor consideration.
Para 60 of the Employees' Provident Fund Scheme, 1952
Interest-( 1) the Commissioner shall credit to the account of each member
interest at such rate as may be determined by the Central Government in.. .
consultation with the Centrat Board.
(2) (a) Interest shall be credited to the member's account on monthly
running balances basis with effect from the last day in each year in the
following manner:
(i) on the amount at the credit of a member on the last day of the
preceding year, less any sums withdrawn during the current year -interest for twelve months.
(ii) On sums withdrawn during the current year - interest from the
beflinning of the current·year up to the Jastday of the month preceding
the month of withdrawal.
(iii) On all the sums credited to the member's account after the fast day of
the preceding year - interest from the first day of the month
succeeding the month of credit to the end of the curre~t year.
The t~tal .emount of· interest shall be. rounded to tHe nearest whole(iv)
.rupee (fifty paise counting as the next higher rupee)]
2.(b) In the case of a claim for the refund under paragraph 69 or 70, interest
shall be payable up to the end of the month preceding the date on which the
final payment is authorised irrespective of the date of receipt of the claim
from the claimant concerned:]
Provided that interest up to and for the current month shall be payable
on the claims which are authorised on or after the 25th day of a particular
month alongwith actual payment after the end of the current month:
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Provided further that the rate of interest to be allowed on claims for
refund for the broken currency period shall be the rate fixed for the financial
year in which the refund is authorised.
[Explanation-If an establishmentis coveredfor the first time under the
Act/Scheme during the course of the currency period the interest shalf be
allowed on all the sums credited to the member's account on and f-romthefirst day of the month succeedingthe month of credit to the end of the
current year.]
{3) The aggregate amount of interest credited to the accounts of the
membersshall be debited to "Interest SuspenseAccount".
(4) In determining the rate of interest, the Central Government shallsatisfy itself that there is no overdrawalon the Interest SuspenseAccount as
a result of the debit thereto of the interest credited to the accounts ormembers.
(5) Interest shall not be credited to the accountof a member if he informsthe Commissionerin writing that he doesnot wish to receive it. If, however,the member subsequently asks for interest, it shall becredited to his account
with effect from the first day of the period of currency in which he makes arequest therefor.
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Section 7 of the Employees' Provident Fund & MiscellaneousProvisions Act, 1952
,. ..--" 7 (1) The Central Government may, by notification in the Official
Gazette add to, amend or vary either prospectively or retrospectively,
"the Scheme, the Pension Scheme or the Insurance Scheme, as the
case may be.
7 (2) Every notification issued under sub-section (1) shall be laid,
as soon as may be after it is issued, before each House of Parliament
while it is in session, for a total period of thirty days, which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately followinq the session or
the successive sessions aforesai-d, both. Houses agree in making any
modification in the notification, or both Houses agree that the
notification should not be issued, the notification shall. thereafter have
effect only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that
notification. ]
...
q;4=r:iltl *4if(l6q M~"ltHEmployees' Provident Fund Organisation
(~~,~mcm- )(Ministry of Labour, Govt. Of India)
Head Office ( 1jlif C61uY{ifU)Bhavishya Nidhi Bhawan,l4-Bhikaiji c;:ama PlacR~w Delhi-l10066
~ frtfb 11cH, 14 - ~ C6J1lr~, w:& - 110066
By FAX/Speed Post
(' No. Invst.II/3(2)2003-2004/Interest/ Dated: 25.03.2004,
C To
C All Regional Provident Fund CommisSioners (1)
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Sub: Dedaration of Rate of interest on EPFaccumulations for the year 2O~3-04.
Ref: 1. H.O. letter No.Invst.II/3(2)2003-04/IntereSt dated 24.04.2003. ,.2. H.O. letter No.Invst.II/3(2)2003-04/Interest dated 25.08.2003
3. H.O.Jetter No. Invst.II/3(2)2003-2004/Interest dated 10.10.2003
( Please recall the decision of the Central Board of Trustees, Employees' Provident Fund
( on the above subject. CBT, EPF in its 163m meeting held on 19th August 2003·rec-ommended
( I" interest at the rate of 9% for the year 2003-04 and an additional interest of 0.5% on the
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occasion of Golden Jubilee of the Employees' Provident Fund Organisation to all members of
the Employees' Provident Fund under Para 60(1) of the EPF Scheme, 1952. The Board also
decided that an interim rate of interest @ 9% and 0.5% bonus interest be pa.id to all outgoing
members. -Recommendation of the CBT, EPF, was sent to the Government of India and its
decision is awaited.
2. According to the above decision of CST, EPF interim rate of interest was to be given to
the outgoing members. The position about crediting the interest for the year 2003-04 in the
accounts of continuing members at the time of issuing annual statement of accounts is not
dear. . As per Para 73 of EPF Scheme, 1952 annual statement of accounts issued to the
members should reflect total amount of interest credited at the end of the period/financial
year. This task cannot be complete till the Central Government takes a deoslonon the rate of
" interest to be credited in the accounts of PF members for the year 2003-04. t-.lpwe.ver, the
matter is being referred to Finance & Investment Committee and Central Board of Trustees,
EPF to take up the matter with the Central Govt. for notification of the rate of interest for
2003-04 as soon as possible. Annual statement of accounts for 2003-04 may not be issued till
further instructions. You are requested to pass on these instructions to SROs/SAOs under the
junsdtction of your region.
3. However, you must gear up your office to do all preparatory activities for
issuance of annual statement of accounts so that annual account slips are issued
immediately after the decision of the Central Government/Central Board of Trustees
about rate of interest for the year 2003-04. You are requested to complete the following
activities for the accounting year 2003-04: -
Updation and reconciliation of cash books& DCBRfor the accounting year 2003-04;
Receipt of annual returns l.e. form 3A and 6A for the accounting year 2003-04 from
all the establishments;3. Data entry, check-llstrnq process of the inputs in respect of all the establishments,
followed by modulejDS operation of CAMPS95;4. Any other activity as felt necessary by the field offices to ensure that the annual
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accounts for the accounting year 2003-04 are compiled and issued with minimum
time and effort, after the dedsion of CompetentAuthority regarding rate of interest
is conveyed.
4. You are further requested to furnish the consolidated informations for the regionrelating to the above tasks in the following proforma to the undersigned by' 10th of every
month.
Estt. Accounts
Progressive uptothe month
Workload for the accountingyear 2003-04
Process completed CuptoModule 305) during·the...,..,.
Estt. Accounts fStt. Accounts Estt. Accounts
Yoursfaithfully,
~(ANIRUDHRAI)
FINANCIAL ADVISOR &. CHIEF ACCOUNTS OFFICER
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