Final Intern Report

Internship Report
On
Provident Fund
A case study of
Puls Trading Far East Ltd.
Submitted to :
Professor Shahjahan Mina
Vice- Chancellor and Internship Supervisor
Department of Business Administration
Daffodil International University
Submitted by:
Jalalur Rahman
BBA
16th Batch
ID No- 071-11-1609
Letter of Transmittal
O3October, 2010
Professor Shahjahan Mina

Vice - Chancellor and Internship Supervisor
Daffodil International University
102Shukrabad, Dhaka-1204.
Subject :Submission of Internship Report
Dear Sir,
It gives me immense pleasure to Submit the internship report on “Provident Fund

as a case study on “Puls Trading Far East Ltd” as a requirement of the BBA
Program of the Department of Business Administration.
Apart from the academic Knowledge gained this internship program and
preparation of report has given me the opportunity to acquaint myself with the
new environment of ACNABIN C.A Firm. I believe that the experience I acquired
from this study will be an invaluable asset in my life.
It expresses my gratitude to you for providing me the opportunity to learn about

the Provident Fund. In spite of various shortcomings, I have devoted my best
effort to the Puls Trading Far East Ltd in company visiting and monitoring as an
advisor. I hope you will appreciate my endeavor and find the report up to your
expectation.
It has to be mentioned further that without your expert advice and cooperation it
would not have been possible to complete this report. I shall be pleased to
answer any sort of query you may regarding this report.
Thanking you.
Jalalur Rahman
BBA
16th Batch
ID No- 071-11-1609
Table of Contents
Topics Page Number
Title Fly
Title Page
Letter of Transmittal I
Acknowledgement II
Executive Summary III
Table of Contents IV
Chapter One (01)

Introduction:
Origin of the Report 1
Background of the Report 1
Scope of the Study 1
Objectives of the Study 2
Methodology of the Study 2
Organization of the Report 3
Limitation of the Study 3
Chapter Two (02)

Literature Review
Chapter Three (03) 4
Overview of ACNABIN 6
Background of the Company 14
Main activities of the Company 16
ORGANIZATIONAL STRUCTURE 19
Chapter Four(04)
Profile of Puls Trading Far East Limited:
Definition of Provident Fund 17
Provident Fund Act,1925
Significant Provident Fund policies 21
Fund Structure 22
Fund Analysis 23
29
Chapter Five(05)
Provident Fund In Bangladesh 34

Investment of Provident Fund. 34
Investment of Provident Fund in Bangladesh
Provident Fund Deed & Rules 35
Difference Between Provident Fund & Gratuity
About Puls Trading Far East Limited
Provident Fund Scheme:

Criteria For Provident Fund Recognition
Fund Statement
Nominee Form
Withdrawal Form
Final Settlement of Provident Fund
Chapter Six(06)
Loan Policy
General Information
Steps of Management Audit
Process of Management Audit
Enquiry
Examinations
Confirmation
Observation of pertinent activities and conditions
Co-relation of information
Chapter Seven(07)
Findings, Conclusions and Recommendation
Risk Assessment
Materiality Worksheet of ZFCL

Non-compliance of Bangladesh Accounting Standards (BAS) in ZFCL
Compliance with Bangladesh Standards on Auditing (BSA)
Chapter Eight (08)
Bibliography
Websites
Appendix
Management Audit Questionnaire (MAQ)
Definition of Provident Fund:

"Provident Fund" means a fund in which subscriptions or deposits of any class or classes of
employees are received and held on their individual accounts, and includes any contribution
and any interest or increment accruing on such subscriptions, deposits or contributions under
the rules of the Fund;
The Act provides three types of provident fund: the Government Provident Fund, Railway
Provident Fund and Contributory Provident Fund. The Government Provident Fund is
constituted by the authority of the government for any class or classes of persons in the
service of the republic. It also includes persons employed in educational institutions or
employed by bodies existing exclusively for educational purposes. Railway Provident Fund is
established by the authority of the railway administration for any class or classes of its
employees. In case of Contributory Provident Fund, contribution in any amount is credited in
a provident fund by any authority administering the Fund. This is done to add to the credit of
an individual account in the fund.
"Government Provident Fund" means a Provident Fund, other than a Railway provident
Fund, constituted by the authority of the Government] for any class or classes of persons in
the service of the Republic] or of persons employed in educational institutions or employed
by bodies existing solely for educational purposes,
"compulsory deposit" means a subscription to, or deposit in, Provident Fund which, under
the rules of the Fund, is not, until the happening of some specified contingency, repayable on
demand otherwise than for the purpose of the payment of permit in respect of policy of life
insurance or the payment of subscriptions or premia in respect of a family pension fund, and
includes any contribution and any interest or increment which has accrued under the rules of
the Fund on any such subscription, deposit, or contribution, and also any such subscription
deposit, contribution interest or increment remaining to the credit of the subscriber or
depositor after the happening any such contingency;
(b) "contribution" means any amount credited in a Provident Found, by any authority
administering the Fund, by way of addition to, a subscription to, or deposit or balance at the
credit of an individual account in, the Fund; and "contributory Provident Fund" means a
Provident Fund the rules or which provide for the crediting of contributions;
(c) "dependant" means any of the following relatives of a deceased subscriber to, or a
depositor in, a Provident Fund, namely, a wife, husband, parent, child, minor brother,
unmarried sister and a deceased son's widow and child, and, where no parent of the
subscriber or depositor is alive, a paternal grand-parent;
(g) "Railway Provident Fund" means a Provident Fund constituted by the authority of the
railway] administration for any class or classes of its employees.
Knowledge Gained From Provident Fund Definition:
 Provident fund is good for saving schemes for salaried people.

 Employers and employees contribute a certain amount of money towards most of the
provident fund.
Protection of compulsory deposits :
(1) A compulsory deposit in any Government or Railway Provident Fund shall not in any
way be capable of being assigned or charged and shall not be liable to attachment
under any decree or order of any Civil, Revenue or Criminal Court in respect of any
debt or liability incurred by the subscriber or depositor, and neither the Official
Assignee nor any receiver appointed under the * * *] Insolvency Act, 1920, shall be
entitled to, or have any claim on, such compulsory deposit.
(2) Any sum standing to the credit of any subscriber to, or depositor in, any such Fund
at the time of his decease and payable under the rules of the Fund to any dependant of
the subscriber or depositor, or to such person as may be authorised by law to receive
payment on his behalf, shall, subject to any deduction authorised by this Act and, save
where the dependant is the widow or child of the subscriber or depositor, subject also
to the rights of an assignee under an assignment made before the commencement of
this Act, vest in the dependant, and shall, subject as aforesaid, be free from any debt
or other liability incurred by the debased or incurred by the dependant before the
death of the subscriber or depositor.
Provident Fund Act, 1925 :

1
An Act to amend and consolidate the law relating to Government and other
Provident Funds.
WHEREAS it is expedient to amend and consolidate the law relating to Government and
other Provident Funds; It is hereby enacted as follows:-
Short title extent and commencement
1. (1) This Act may be called the Provident Funds Act, 1925.
(2) It extends to the whole of Bangladesh.
(3) It shall come into force on such date as the Government may, by notification in the
official Gazette, appoint.
Defined contribution to provident Fund and defined benefits to Gratuity Fund

PROVIDENT FUND AND GRATUITY
Sec.38. Provident Fund
S.41-A. Gratuity
O.347-A. For purpose of payment of premiums toward an Insurance Policy of a Subscriber,

withdrawals at his option, from Provident Fund Account shall be allowed from out of the
subscription of a member of the staff. Provided that no amount shall be allowed to be
withdrawn before the details of the proposed policy including the existing policies have been
submitted and they are accepted as suitable.
O.347-B. A subscriber shall be liable to refund any amount withdrawn towards the payment
of insurance premium if the Syndicate later on has any reasons therefore, with interest hereon
at the rate allowed on the P.F. Account and the amount so recovered from the emoluments of
the subscriber shall be placed to the credit of the subscriber in the Fund.
O.347-C. (1) The policy, within three months after the first withdrawal from the Fund in
respect of the policy or in the case of an Insurance Company whose headquarter is outside
India, within such further period as the Registrar if he is satisfied by the production of the
completion certificate (Interim Receipt), may fix shall :
(a) unless it is a policy expressed on the face of it to be for the benefit of the wife of the
subscriber, or of his wife and children or any of them, be assigned by an endorsement on the
policy in Form-l set forth in the Schedule to the University as security for the payment of any
sum which may become payable to the fund by the subscriber under Ordinances 347-E 347-F
and delivered to the Registrar.
(b) If it is a policy expressed on the face of it to be for the benefit of the wife of the subscriber
or of his wife and children, or any of them, be delivered to the Registrar.
2. The Registrar shall satisfy himself by reference to the Insurance Company, where possible,
that no prior assignment of the Policy exists.
3. Once a policy has been accepted for the purpose of being financed from the fund the terms
of the policy shall not be altered.
4. If the Policy is not assigned and delivered within the said period of three months or such
further period as the Registrar may, under clause (1) have fixed, any amount withdrawn from
the fund in respect of the policy shall with interest thereon at the rate allowed on the P.F.
account forthwith be paid by the subscriber to the fund, or in default be ordered by the
Registrar to be recovered by deduction from the emoluments of the subscriber by installments
or otherwise as the Syndicate may direct.
5. Notice of assignment of the Policy shall be given by the subscriber to the 126
PROVIDENT FUND AND GRATUITY CH. XLV Insurance Company, and the
acknowledgement of the notice by the Insurance Company shall be sent to the Registrar
within three months of the date of assignment. .
O.347-D. The subscriber shall not during the currency of the policy, draw any bonus, the
drawal of which during such currency is optional under the terms of the policy and the
amount of any bonus, which under the terms of the policy the subscriber has no option to
refrain from drawing during its currency, shall be paid forthwith into the Fund by the
subscriber or in default recovered by deduction from his emoluments by installments or
otherwise as the Syndicate may direct.
O.347-E. (1) Save as provided by clause (2) of Ordinance 347-G when the subscriber:
(a) Quits the service.
Or
(b) proceeds on leave preparatory to retirement and applies to the Registrar for reassignment
or return of the policy.
Or
(c) while on leave, has been permitted to retire or declared by a medical authority to be unfit
for further service and applies to the Registrar for reassignment or return of the policy.
Or
(d) pays to the Fund the whole or any amount from the fund for the purpose of payment of
premium,
The Registrar shall :
(i) if the Policy has been assigned to the University under Ordinance 347- E re-assign policy
in Form II set forth in the Schedule to the subscriber and make it over to the subscriber.
(ii) if the policy has been delivered to him under clause (1) (b) of Ordinance 347/C, make
over the Policy to the subscriber. Provided that if the subscriber, after proceeding on leave
preparatory to retirement or after being, while on leave permitted to retire or declared by a
medical authority to be benefit for further service returns to duty, any policy so re-assigned or
made over shall, if it has not matured or been assigned or charged or encumbered in any way,
be again assigned to the University and delivered to the Registrar or again be delivered to the
Registrar, as the case may be in the manner provided in Ordinance 347-C ,and thereupon the
provisions of these Ordinances shall, so far as may be, again apply in respect of the policy:
Provided further that, if the policy has matured or been assigned or charged or encumbered in
any way, the provisions of clause 3 of Ordinance 347-C applicable to a failure to assign and
deliver a policy shall apply.
(2) Save as provided by clause (2) of Ordinance 347-G, when the subscriber dies before
putting the service, the Registrar shall :–
CH. XLV PROVIDENT FUND AND GRATUITY 127
(i) if the policy has been assigned to the University under Ordinance 347-C, assign the policy
in Form III set forth in the Schedule to such person as may be legally entitled to receive it
and shall make over the policy to such person, together with a signed notice of re-assignment
addressed to the Insurance Company.
(ii) if the policy has been delivered to him under sub-clause (b) of clause (1) of Ordinance
347-C make over the policy to the beneficiary, if any, or if there is no beneficiary to such
person as may be legally entitled to receive it.
O.347-F. (1) Save as provided by clause (2) of Ordinance 347-G, if a policy assigned to the
University under Ordinance 347-C matures before the subscriber quits the service and before
his death, the Registrar shall the amounts assured and shall deduct there from the whole or
any amount withdrawn from the fund in respect of the policy with interest thereon at the rate
allowed on the P.F. account and shall place the amount so deducted to the credit of the
subscriber in the Fund. The balance, if any, shall at the option of the subscriber, be paid to the
subscriber or placed to the credit of the subscriber in the Fund.
(2) Save as provided by clause (2) of Ordinance 347-G, if a policy delivered to the Registrar
under clause (1) (b) of Ordinance 347-C matures before the subscriber quits the service and
before his death, the Registrar shall make over the policy to the subscriber, who shall pay to
the Fund the whole or any amount withdrawn from the Fund in respect of the policy with
interest thereon at the rate allowed on the P.F. account and in default, the provisions of clause
(3) of Ordinance 347-C applicable to a failure to assign and deliver a policy shall apply.
O.347-G. (1) If the policy lapses or becomes assigned, otherwise that to the University under
Ordinance 347-C charged or encumbered, the provisions of clause (3) of Ordinance 347-C
applicable to a failure to assign and deliver a policy shall, apply.
(2) If the Registrar receives notice:
(a) an assignment (other than an assignment to the University under Ordinance 347-C) or
(b) a charge or encumbrance on or
(c) an order of a court restraining dealings with the policy or any amount realized thereon, the
Registrar shall note:
(i) assign or re-assign or make over the policy as provided in Ordinance 347-E, or
(ii) the amount assured by the policy or dispose of any part of any amount so or make over
the policy as provided in Ordinance 347-F but shall forthwith refer the matter to the
syndicate.
Payment of Gratuity to Employees Rules
General:
Applicability:
3. These Rules are intended to provide extra retirement benefit which is in the form of ex-
gratia payment to the employees of the University. They shall apply to :
(i) All employees joining service in the University on or after the date of coming into force of
these rules.
(ii) All employees who are in the service of the University on 1-4-1969 and opt for the
gratuity scheme under these rules in the manner detailed in Rule 4 below.
Exception
Employees holding (a) an appointment under contract, unless the terms of contract provide
otherwise, or (b) an appointment for a fixed term, or (c) an appointment on fixed pay or (d)
an appointment on re-employment on superannuation (including extensions, if any) either
from the, or (e) employees on work-charge basis, shall not be covered by these rules.
Option :
4. (i) Employees in service on 1-4-69 shall have the right (a) to opt for this scheme or (b) to
continue the existing, CPF scheme of the University. Option shall be exercised and
communicated to the Registrar in writing within 3 months from the date of notification of
these rules, and option, once exercised shall be final and irrevocable, and in case no option is
received by the date specified for the purpose, it shall be deemed that the employee has opted
for the gratuity scheme under these rules.
Exception I
(i) In case of an employee who is absent from duty on the date of the notification of these
rules, on account of being on deputation or study leave either in India or abroad, the Registrar
shall communicate the provisions of these rules and the employee shall be asked to exercise
his/her option in the manner and within the period specified above.
(ii) In the case of an employee who was in the service of the University on the date of coming
into force of these rules and died whilst still in service on the same date or on a subsequent
date before having opportunity of exercising the option under clause (i) above, the person or
persons validly nominated under Statute 41 for receiving the amount standing to the credit of
the employee's Provident Fund, can make specific request to the Vice-Chancellor to permit
the nominee or nominees jointly, to opt for the gratuity scheme, and the Vice- Chancellor
shall have the discretion to accede to the request of the said nominee or nominees of the
deceased provided that any ex-gratia payment already made or agreed to be made on monthly
basis to the nominees of the deceased shall reckon towards the amount of death gratuity
admissible to him/her under rule 10.
Gratuity Fund:
5. (i) In the case of all employees of the University to whom these rules are applicable, the
University's share of contribution to the Provident Fund will be reduced by 1/3 % from the
date of commencement of University contribution to the P.F. in each case which shall be
transferred to the Gratuity Fund.
(ii) Every temporary employee of the University who under Statute 41 is not eligible to
receive the University's share of contribution to the Provident Fund shall subscribe @ 1/3 %
of his/her substantive pay every month to the Gratuity Fund. In the event of such an
employee leaving the service of the University due to any reason whatsoever, except when
the employee is dismissed from the service in the University before he/she becomes eligible
for payment of gratuity in terms of rules 6 and 9, the total amount so subscribed by the
temporary employee to the Gratuity Fund shall be refunded to him.
(iii) On the date of coming into force of these rules the organization shall constitute a
Gratuity Fund by :
(a) Diverting from the Provident Fund accounts of all existing employees who opt for the
Gratuity scheme, the amount of excess credit at 1/3 % as University's share of contribution
to the Provident Fund from the date on which such contributions by the University started in
each case.
(b) Paying into the Fund every month an amount equal to the 1/3 % less credited to the
employee's Provident Fund as University's share of contribution in terms of clause (i) plus the
amount of subscription for Gratuity Fund @ 1/3 % realized from the temporary employees in
terms of clause
(ii) above.
Conditions of Payment:
1. Gratuity shall be payable at the discretion of the Vice Chancellor to an employee on his
rendering satisfactory service to the University till the date he attains the age of
superannuation or the date of retirement after extension, or his death while in service, or on
termination of service otherwise than on dismissal;
Provided that the amount of gratuity payable to an employee under these rules shall be
reduced by an amount equal to the value of any loss or damage to University property
including money caused on account of negligence or criminal offence, or on account of
contributory negligence resulting in any loss of University property or money.
Provided further that payment of gratuity to an employee who is in occupation of University

accommodation shall be made to him or, in case of his death, to his nominee only after the
University accommodation in his occupation is vacated.
N.B. :– An employee to whom extension in service has been granted after attaining the age of
superannuation will not be paid less in terms of gratuity than what he would have been
entitled to get had he retired on attaining the age of superannuation, irrespective of the
manner he leaves the service.
Nominations:
7. (i) Every employee eligible for the benefits of the gratuity scheme of the University, shall
be required to sign a Nomination Form (in triplicate) as prescribed by the University
(Appendix-I) and send the same through the concerned Head of the Department/office, for
registration in the office of the Registrar.
(ii) The employee may, from time to time, add, change or cancel one or more nominees by
written application addressed to the Registrar through the concerned Head of the
department/Office.
(iii) In case of an employee who died while in service and failed to nominate any person to
receive the amount of gratuity payable under these rules, or in case the nominee also dies
before payment of the gratuity amount to him/her, the payment of gratuity may be authorised,
at the discretion of the Vice-Chancellor to a person or persons who produces/produce a
certificate of succession from a competent court and executes/execute an indemnity bond to
refund the amount of gratuity so paid to him/her/them by the University in the event of
his/her/their title to succession being found defective.
132 PROVIDENT FUND AND GRATUITY CH. XLV
Gratuity to a permanent employee:

8. (i) The amount of gratuity payable in the case of permanent employees of the University
who leave University service on superannuation or on retirement after extension in service or
on termination after 1-9-97 shall be calculated at the rate of one fourth of the ‘emoluments’ of
a
University employee for each completed six monthly period of
qualifying service subject to a maximum of 16½ times the
‘emoluments’ or Rs. 3.5 lacs whichever is less. With other terms and
conditions remaining of the scheme as annotation in Notification No.
F.15(3)/FA (Rules) 97 dated March 21, 1998 of the finance
department, Government of Rajasthan
(ii) For calculating the completed six monthly period of continuous
service the period or periods spent by the employees on leave without
pay or period/periods spent on deputation for which no P.F.
contribution has been received from the foreign employer or from the
employees in lieu of the foreign employer shall be excluded. Gratuity
to a temporary employee:
Gratuity to a temporary employee :
9. A person in temporary employment who ceases to be in the University service on account

of superannuation or retirement after extension in service or termination after completing not
less than 5years continuous service shall be, if otherwise eligible for payment of gratuity
under these rules paid gratuity at the rate of 1/3 of a month's emoluments for each completed
year of continuous service.
Death Gratuity :
10. In the event of death of a University employee in service the amount of death gratuity
payable to the nominees/family members (wife, children etc.) of the deceased employee will
be as under:
( i) 5 years or more but : 12 times of emoluments less than 20 years.
(ii) 20 years or more : Half of emoluments for every completed six monthly period of
qualifying service subject to a maximum of 33 times emoluments or Rs. 2.5 lacs whichever is
less.
Gratuity on resigning from service:

11. No gratuity shall be payable to an employee with less than 5 years, continuous service in
the University in the event of his/her resigning from the service of the University. Such an
employee with 5 years or more of continuous service may be paid gratuity at the
following rate:–
(a) Continuous service of 5 years 25 % of the normal or more but less than 7 years Service
gratuity.
(b) Continuous service of 7 years ’’ 30 % ’’ or more but less than 9 years ’’
(c) Continuous service of 9 years ’’ 35% ’’ or more but less than 11 years ’’ ’’
(d) Continuous service of 11 years ’’ 40% ’’ or more but less than 13 years
(e) Continuous service of 13 years ’’ 45% ’’ or more but less than 15 years
(f) Continuous service of 15 years ’’ 50% ’’ or more but less than 16 years
(g) Continuous service of 16 years ’’ 55% ’’ or more but less than 17 years
(h) Continuous service of 17 years ’’ 60% ’’ or more but less than 18 years
(i) Continuous service of 18 years ’’ 65% ’’ or more but less than 19 years
(j) Continuous service of 19 years ’’ 70% ’’ or more but less than 20 years
(k) Continuous service of 20 years ’’ 75% ’’ or more but less than 21 years
(1) Continuous service of 21 years ’’ 80% ’’ or more but less than 22 years
(m) Continuous service of 22 years ’’ 85% ’’ or more but less than 23 years
(n) Continuous service of 23 years ’’ 90% ’’ or more but less than 24 years
(o) Continuous service of 24 years ’’ 95% ’’or more but less than 25 years
(p) 25 years and above ’’ 100% ’’
Notes:– 1. The word ‘emoluments’ where ever it occurs means emoluments which an
employee was receiving immediately before the date of his release from University service
on superannuation or retirement after extension in service or termination or death and
includes :
(a) pay,
(b) personal pay which is granted in lieu of loss of substantive pay,
(c) special pay attached to a post, and

134 PROVIDENT FUND AND GRATUITY
(d) Dearness pay, if any.
2. If an employee holding a permanent post in a substantive
capacity officiates in a higher post (other than tenure post) borne on a cadre which includes
permanent post, continuously for not less than 3 years, and leaves the University service on
account of superannuation or retirement after extension in service or termination while
officiating on such a higher post the emoluments drawn by the employee on the officiating
post shall be taken into account for calculating his/her gratuity provided that no other
employee held lien on the higher officiating post and it is certified that but for his/her
retirement on superannuation after extension in service or termination of services the
employee would have continued to officiate on the higher post.
3. If immediately before release from University service on superannuation or retirement

after extension in service or termination, an employee has been absent from duty on leave
with allowances, his/her emoluments for purpose of gratuity shall be taken what they would
have been had he/she not been absent from duty.
Power of Relaxation :
12. In case provisions of these rules cause undue hardship to an employee the Syndicate may
on merits of each case relax the provisions of these rules by issue of specific orders.
Power of Interpretation :
13. The power of interpreting these rules shall vest in the Syndicate and the decision of the
Syndicate shall be final.
14. These rules supersede the rules previously adopted by the Syndicate
under Res. No.4, dated 6.3.1969.
APPENDIX I
NOMINATION FORM
(To be submitted in triplicate)
To:
The Registrar,
University of Rajasthan,
Jaipur.
Dear Sir,
I, Shri/Smt/Km .......................................................... .son/wife/daughter

of Shri ..........................................hereby nominate person/s mentioned below
and confer on him/them the right to receive, to the extent specified below any
gratuity that may be sanctioned by the University in the event of my death while
in service:
S.
No
Age Address of
the
nominee/(s)
Relationship
with the
employee
The amount of share of
Remarks gratuity
payable to each
1.
2.
3.
4.
Total 9 (This must be I)
This nomination supersedes the nomination made by me earlier on
....................... which stands cancelled.
N.B.:– The member of the staff shall draw lines across the blank space before
the lines entered to prevent insertion of any nomination after he has signed.
Signature of the employee

Full Name:
(Block letters)
Designation :
Station:
Date:
Two Witnesses.
1.
2.
———
136 PROVIDENT FUND AND GRATUITY CH. XLV

A defined contribution provident fund is similar to a defined contribution pension
fund/gratuity fund in that the contributions of employee and employer make to the fund are
set down, or defined, in employee’s employment contract, and by the rules of the fund.
On the other hand, a defined contribution provident fund differs from a defined benefit
pension fund/gratuity fund in that the size of the benefit paid to employee, when employee
retire is not guaranteed. Employer guarantees to make a contribution to employee’s provident
fund, but does not guarantee employee’s pension/gratuity. If the investments made with
employee’s retirement/gratuity fund savings perform poorly, you carry this loss. If they
perform well, you pick up the benefit.
The big difference between a provident fund and a pension/gratuity fund lies in the taxation.
Employee cannot deduct his contributions against tax every year, but employee can take his
entire retirement savings as a lump sum when he retire.
Employee’s contributions to the fund are also not taxed at retirement, but contributions made
by your employer to the provident fund will be taxed.
How much does it cost?
The contributions to the fund, both by employer and employee, are fixed when employee join
the fund, or when employee start employment.
The contributions of both employee and employer are calculated as a percentage of your
pension able salary, which normally excludes allowances, such as those for motor vehicles
and allowances. While the percentage is constant, the size of contributions increases as your
basic salary increases.
With a provident fund employer will normally, but not always, make the entire contribution.
This is because employer, not employee, can claim the contributions as a tax deduction, but
this means the portion of the amount employee receive at retirement that came from employer
is taxable.
How pension/gratuity is calculated:
 A record is kept of exactly how much you and your employer have paid into the fund,
as well as the capital and income growth of the investment from the contributions.
When you retire you can take the entire benefit in cash.
 At retirement, your tax-free portion is calculated in the same way as for a defined
contribution pension/gratuity fund.
 Further tax may be levied on any income generated from your investment, depending
on how the income was generated, and your employer's contributions.
 Unlike a defined benefit scheme, you cannot predict what your pension will be, as you
cannot predict how much capital you will have when you retire.
 Because you have to take the investment risk, you are normally given at least two
investment choices.
The usual ones are:
 Guaranteed: Here your capital is guaranteed, as well as some growth. You get additional
growth by way of annual bonuses, which are based on the market performance of the
underlying investments. Bonuses come in two forms: vesting (which cannot be taken away
once given); and non-vesting (which can be taken away if the life assurance company giving
the guarantees has an extremely bad time in investing);
 Market-linked: Here your retirement fund savings are worth exactly the same as the
underlying investments. If the value of the underlying investments goes up by 40 percent, so
will your retirement savings. But if there is a market crash, your retirement savings will
diminish in value.
Market-linked investments also come with choices. The main market-linked option is one
where you have no say in the investments. The fund trustees hand over the money to an asset
manager with instructions about how they would like to see the money invested.
However, members are increasingly being offered "umbrella" investments, which give you
the choice as to what particular instruments to invest in (mainly unit trust funds). This,
however, pushes up costs and exposes you to the risk of making the wrong decisions. Unless
you have the time and expertise, this is an option best avoided.
Length of service: 30 years

Your total contributions: R200 000
Plus employer's contributions: R200 000
Plus income and capital growth: R600 000
Pre-tax total: R1 000 000
(Tax is ignored in this calculation)
If you have been in a market-linked fund, it is normally best to switch to a guaranteed fund if
markets are high and you are nearing retirement.
When you retire you if you do not want to take the lump sum and want to receive a monthly
pension, you can buy a voluntary annuity. This can be structured in a number of ways,
including in such a way as to give you an increase each year to take account of inflation, or in
a way that will ensure that the pension is paid to your spouse after you die.
However, a guaranteed annuity in which you are guaranteed a pension for life, can also have
a downside. This is because these annuities are based on interest rates. If long-term interest
rates are high, you will receive a better pension; but if interest rates are low, then your
pension will also be lower.
In making the decision on where to buy an annuity, and in cases where a pension is bought
for you individually from a life assurance company, you should ask your fund to provide
quotations from various firms.
Advantages of defined contribution provident funds:
 You may get a higher pension than you would have received from a defined benefit
retirement fund as a result of good investment performance;
 At retirement you can invest the entire lump sum benefit as you see fit, giving you greater
choices. You can buy an annuity of your choice and from any company you like, set up a
post-retirement business and invest in a wider range of investments. In other words, you can
control your investments yourself;
 If you live in a remote area with little infrastructure or where it is difficult to receive
pension payments, a lump sum can be preferable; and
 As with a defined contribution pension fund, you have a greater say in the investments of
contributions during your working life. However, here again, you need to be cautious about
how you decide on the option most suitable for you.
Disadvantages of defined contribution provident funds
 The risk of having insufficient money to see you through retirement is yours. This risk is
greatest with a provident fund.
Not only do you have the risk in the build-up of the fund, where investment returns will
determine what you will receive at retirement, but you also need to make your money last
you through retirement.
If it is poorly invested, you may find yourself destitute, particularly if you live for a long
time. It is impossible for you to know how long your natural life will be, making it very
difficult to decide how much money you will need for the rest of your life.
Therefore, it is best to use at least part of the money to purchase a pension, so that you are at
least assured of a certain income until you die;
 Employee contributions are not tax deductible;
 Employee’s family may not receive much if you die young, or if you have to take early
retirement because of ill-health, particularly when you are younger.
The reason for this is that you or your family will receive a pension based on your
accumulated retirement savings at that point.
However, group life and disability benefits are normally better than for a defined benefit
scheme. You need to take into account the structure of group life benefits. If there is a
shortfall, particularly when you are younger, you may need to buy additional personal
disability and life assurance for a limited period; and
 Aids could have a significant impact if your employer is forced to increase payments for
group life cover and reduce payments towards your retirement funding.
Figure: Resource flow of the Provident Fund:
Regardless of the manner in which Provident funds are contributed, the funds must be
managed until needed to pay benefits. Provident portfolios are evenly invested in common
stock, corporate bonds, stock and other credit instruments. Provident fund management can
be classified according to the strategy used to manage the portfolio. With a matched funding
strategy, investment decisions are made with the objective of generating cash flows that
match planned outflow payments. An alternative strategy is projective funding, which offers
managers more flexibility in constructing a Provident portfolio that can benefit from expected
market and interest rate movements. Some Provident funds segment their portfolios with part
used for matched funding and the rest for projective funding (Madura, 2006).
Provident Fund Accounting: The Provident fund should be a separate legal and accounting
entity for which a set of books is maintained and financial statements are prepared. Provident
accounting may be divided and separately treated as accounting for employer and accounting
for Provident fund. Maintaining books and records and preparing financial statements for the
fund known as “Accounting for employees benefit plans or Accounting for the Provident
fund.” (Kieso, Weygandt & Warfield,)
Provident Fund Audit:
Provident fund audit is a special kind of audit conducted with a view to expressing an opinion
whether an organization’s information relating to the fairness of Provident funds. In
conducting this audit, some piece of information are gathered in respect of trust
deed, agreement, actuary, list of eligible employee, fund,
amount of Provident able salary, Provident able service,
approval, dependent child and so on. Moreover, loans and
advances given from the fund, the outstanding loan amount,
the loan loss provision, the interest on investment, the loan
status etc. are also collected from the corporate office of the
respective company. This is the responsibility of the trustees to
prepare the financial statements of Provident fund and the
auditor’s responsibility is to express an independent opinion on
these financial statements based on their audit.
Puls Trading Far East Ltd. Bangladesh Liaison Office
House # CWN(A) 35, Road# 43
Board Resolution of PF 2nd Meeting
A meeting was held in the conference room of Regent Global

Sourcing inc., Bangladesh Liaison Office on
…………………………………. 2010 at …………am. Mr. Manish
Chawla, Chief Representative, presided over the meeting in
presents of following officials:
1. Mr. Manish Chawla Chief Representative, Member and the

Chairman of the Trustee
2. Ms. Mir Mehtap Member & Secretary of the Trustee
3. Mr. Ziaur Rahman Member of the Trustee
4. Mr. Basirun Nabi Member of the Trustee
5. Mr. Raisul Hassan Member of the Trustee
6. Mr. Alexander Member of the Trustee
Gomes
7. Mr. Moinul Kabir Member of the Trustee
8. Munni Gulshan Ara Member of the Trustee
9. Frank Blin Member of the Trustee
Gonsalves
1 Francis Liton Member of the Trustee
0. Gomes
In addition to the above the other official of Puls Trading Far

East Limited, Bangladesh Liaison Office was present.
AGENDA(S):
The meeting was conveyed mainly to discuss to establish a Puls

Trading Far East Limited, Bangladesh Liaison Office Employees’
Provident Fund:
Review the Draft PF rules formulated for In addition to the

above the other official of Puls Trading Far East Limited,
Bangladesh Liaison Office was present.
1. Employees PF Fund.
2. Opening a Bank Account
3. NBR permission.
MINUTES:
AGENDA DECISIONS RESPONSIBLE
1. A. Review the A decision was unanimously taken
draft deed formulated by the board to revise PF rules
for Puls Trading Far with relevant changes as follows:
East Limited,
COMPANY’S
Bangladesh Liaison
CONTRIBUTION
Office Employees’
Provident Fund. The contribution by the company
up to 31 December 2009 are as
below:
Year of service % of
since 1992 Company’s
contribution
Less than 2 Nil
years
2 years 20%
3 years 30%
4 years 40%
5 years 50%
6 years 60%
7 years 70%
8 years 80%
9 years 90%
10 years or 100%
longer
AGENDA DECISIONS RESPONSIBLE
Every member of the fund and the
company shall contribute to the
fund at the rate of 10% (ten) of his
gross salary (ignoring fractions of
a Taka) from the first day of
January of the year two thousand
and ten. The contribution of
employees shall be deducted by
the company from each payment
of salary made to him and shall be
paid by the company to the
trustees and credited to the
individual account of the member.
2. Opening a PF The board unanimously makes a
Account decision to open a PF Savings
Account in HSBC Bank, Dhaka,
Bangladesh.
3. NBR permission. The board unanimously agreed to
double check all the documents
with a lawyer to verify all
document's authenticity in respect
of legal aspect. Subsequently
agreed to go for NBR permission.
4. AOB In reply to the proposal made by
the chairman, the board
Outsourced Account
unanimously agreed to appoint
professional and
ACNABIN, Chartered
member secretary
Accountants as a outsourced
position.
Account professional and Ms.
Mehtap Mir as Member Secretary
for Puls Trading Far East Limited,
Bangladesh Liaison Office
Employees’ Provident Fund.
As there were no more issues to discuss, chairman ended the
meeting with the vote of thanks.
Thanking you.
Manish Chawla
Chairman
Puls Trading Far East Ltd. Bangladesh Liaison Office
House # CWN(A) 35, Road# 43
Gulshan-2, Dhaka-1212
VERIFICATION
We the Trustees of the above named fund do hereby declare

that what is stated in the application is true the best of our
information and belief and that the documents sent herewith
are the originals or true copies thereof:
Sl# Name Designation Position of the Signature

Trustee Member
1. Mr. Manish Chief Chairman

Chawla, Representati
ve
2. Ms. Mir Member &
Mehtap Secretary
3. Mr. Ziaur Member
Rahman
4. Mr. Basirun Member
Nabi
5. Mr. Raisul Member
Hassan
6. Mr. Alexander Member
Gomes
7. Mr. Moinul Member
Kabir
8. Munni Member
Gulshan Ara
9. Frank Blin Member
Gonsalves
10. Francis Liton Member
Gomes
For recognition of Employees’ Provident Fund
Criteria of recognition of Employees’ Provident Fund:
1. Original copy of the application ‘Form’ of the Provident Fund along with a
photocopy thereof;
2. Original copy of Trust Deed and Rules of the Employees’ Provident Fund duly
attached by the Notary Public along with a set of photocopy of each thereof; and
3. Audited accounts of the Fund.
Application for Approval of Puls Trading Far East Ltd. Employees’

Provident Fund
(a) Name and address of : Puls Trading Far East Ltd.

employer, his business,
profession, etc. also his House No. CWN (A) 35, Road No. 43,
principal place of business. Gulshan-2, Dhaka-1212, Bangladesh
(b) Number of employees
subscribing to the Fund-
i) In Bangladesh : 214
ii) Outside Bangladesh : Nil
(c) Place, where the accounts of : Puls Trading Far East Ltd.
the Fund are or will be
maintained House No. CWN (A) 35, Road No. 43,
Gulshan-2, Dhaka-1212, Bangladesh
(d) If the Fund is already in :

existence-
(i) a copy of the last balance

sheet of the fund; and
(ii) details of investments of

the fund
_____________________
Signature of Employer
------------------------------------------------------------------------------------------------------------
I/We, the trustee(s) of the above named Fund, do hereby declare that what is
stated in the application is true to the best of my/our information and belief, and
that the documents sent herewith are the originals or true copies thereof.
Signature of the Trustees

1. Mr. Manish Chawla
2. Ms. Mir Mehtap
3. Mr. Ziaur Rahman
4. Mr. Basirun Nabi
5. Mr. Raisul Hassan
6. Mr. Alexander
Gomes
7. Mr. Moinul Kabir
8. Munni Gulshan Ara
9. Frank Blin
Gonsalves
10. Francis Liton
Gomes
PULS TRADING FAR EAST LTD.
EMPLOYEES’ PROVIDENT FUND TRUST DEED
THIS INDENTURE IS MADE BETWEEN PULS TRADING FAR EAST

LTD. having its registered office
at .................................................., Dhaka,
Bangladesh (hereinafter called “the company”)
represented by its Country Manager on the ONE PART.
AND
1. Mr. Managing Director, Member and the Chairman of the

Trustee
2. Mr. ........................., Member of the Trustee
6. Mr. ........................., Member & Secretary of the Fund &

Trustee
7. Mr. Office Peon, Member of the Trustee

(hereinafter jointly and severally called “the Trustees”)
of the OTHER PART.
WHEREAS it has an imperative necessity and the

company has determined to constitute a provident fund
in the name of PULS TRADING FAR EAST LTD.
Employees Provident Fund for the benefits of the
employees employed in the company, all of whom are
employees of PULS TRADING FAR EAST LTD..
AND WHEREAS the trustees have consented to act as

trustees of the fund.
NOW THIS INDENTURE WITHNESSETH and is hereby agreed and declared that a
PROVIDENT FUND entitled as "PULS TRADING FAR EAST LTD. EMPLOYEES’
PROVIDENT FUND” (hereinafter referred to as “the Fund”) is hereby established and
constituted from first day of January of two thousand six Christian era in terms of the
rules hereinafter provided.
IN WITNESSES WHEREOF, the Company and the Trustees have thereto set their
hands the day and year first written above.
Signature in presence of
Trustee(s)
Mr. ................... Mr. ......................

.............................. Managing Director, Member
Puls Trading Far East Ltd. and the Chairman of the
Trustee
Witness: Mr. .......................

1. ........................., Member
of the Trustee
2. Mr. ......................
........................., Member of
the Trustee
3. Mr. .......................
........................., Member of
the Trustee
Mr. .......................
........................., Member of
the Trustee
Mr. .......................
........................., Member &
Secretary of the Fund &
Trustee
Mr. .......................
Office Peon, Member of the
Trustee
RULES OF
THE PULS TRADING FAR EAST LTD.
EMPLOYEES’ PROVIDENT FUND
DEFINITION
The Fund shall be called “THE PULS TRADING FAR EAST LTD.
EMPLOYEES’ PROVIDENT FUND” or such other name as may
from time to time be determined with the previous
approval of the Commissioner of Income Tax, Dhaka.
In these Rules and Regulations, the following expressions

shall unless excluded by or repugnant to the context,
have the meanings hereinafter attached to them,
namely: -
“The Fund” means “THE PULS TRADING FAR EAST LTD.

EMPLOYEES’ PROVIDENT FUND”.
“The Company” means PULS TRADING FAR EAST LTD.

incorporated under the Companies Act, 1994.
“The Trustees” mean the Trustees, for the time being, of
the fund.
“Directors” mean the Directors of the company, for the time

being.
“Employee” means any employee in the regular and

permanent service of the company.
“Member” means any person in the service of the company

who subscribes to the fund.
“Continuous Service” means uninterrupted service in the

employment of the company but includes services
which is interrupted by sickness, accident or otherwise
leave shall be considered to be covered under this
clause.
“Salary or Wages” means only the fixed basic monthly salary
or wages paid to each employee by the company and
does not embrace anything taxable under the head
“Salaries” in accordance with the Income Tax
Ordinance, 1984 or overtime, bonus, donation, or any
personal or special allowance or car allowance,
entertainment allowance, commission or any other
remuneration or profit or any temporary or fluctuating
addition to basic salary or wages whatsoever paid to
any employee outside his fixed monthly salary or wages
whether it is in addition to or in lieu of his salary. The
decision of the company as to the amount of salary or
wages received by members in respect of any month
shall be final and binding to all the parties.
“Family” means:
In case of male member, the wife or wives and

legitimate children, step children, parents,
sisters and minor brothers of the member and
the widow or widows, and the legitimate children
and step children of a deceased son of the
member. Provided that if a member proves that
his wife has been judicially separated from him or
has ceased under the customary law of the
community to which she belongs to be entitled to
maintenance she shall henceforth be deemed to
be no longer a member of the member’s family,
in the matter to which these rules relate, unless
the member subsequently indicates by express
notification in writing to the trustees that she
shall continue to be so regarded.
In case of a female member, the husband and
legitimate children, step children, parents,
sisters and minor brothers of the member, and
the widower and legitimate children of a
deceased son of the member. Provided that if a
member by notification in writing to the trustees
expresses her desire to exclude her husband
from her family, the husband shall henceforth be
deemed to be no longer a member of the
member’s family, in matters to which these rules
relate, unless the member subsequently cancels
formally in writing her notification excluding him.
“Financial Year” means period beginning on the first day of

January and ending on the last day of December of the
same year.
j) “Month” means a period commencing on the first day of the calendar month
and ending on the last day of the same calendar month.
k) “The Ordinance” means the Income Tax Ordinance, 1984 and the rules
thereof and includes any statutory modifications of re-enactment thereof.
l) “Rules” means these rules or other rules for the time being in force with
respect to the fund. Words importing the masculine gender shall include the
feminine gender. Words of the plural number shall, unless a contrary intention
appears, taken to include the singulars and vice versa.
DATE OF COMMENCEMENT OF THE FUND
1. The fund, which is hereby established, shall be deemed to have been established
and taken effect on and from the first day of January of the year two thousand and
six.
OBJECT
The object of the fund shall be to provide every member

with a sum of money, the amount of which will be
ascertained and payable in accordance with these
rules.
TRUSTEES APPOINTMENT AND POWERS
2.
i. The company may from time to time appoint the trustees. The fund shall be
vested in not less than two and not more than eight trustees, including a
trustee to be taken from amongst the employees who are not officers of the
company having regard to their wishes, under a trust which shall not be
revocable save with the consent of the majority of the beneficiaries.
ii. The trustees shall have entire control over the management of the fund and
shall be vested with all powers, authorities and discretion necessary or
expedient for that purpose in addition to any express powers conferred by
these rules. The trustees may authorize any two of their members to open a
Banking Account on behalf of the fund with any Bank and to operate upon
such Banking Account as may be required for administration of the fund. The
trustees may also from time to time revoke such authority or substitute fresh
authority.
iii. The company shall have the power of appointment and removal of trustees
and subject to rule 5(i) above may also appoint any person to act as trustees
in the place of any trustee who is temporarily absent from Dhaka but in case
of such a temporary appointment, it shall not be necessary to carry out any
transfer of the trust property.
iv. A trustee shall cease to hold the office of the trustee upon ceasing to be an
officer or an employee of the company or if he is found to be of unsound mind
or is adjudged insolvent or convicted of an offence as the case may be. A
trustee can be removed from his office for any misconduct in respect of the
management of the fund. Any vacancy amongst the trustee shall be filled in
as soon as possible by the trustees in accordance with 5 (i) above.
CHAIRMAN OF TRUSTEES
3. The Managing Director of the company as per rank and position amongst the
trustees shall be the chairman of the Board of Trustees, who shall preside over their
meetings and in his absence, one of the trustees present shall be elected by them to
the chair. The trustees shall meet as and when required and at every meeting
4(four) trustee shall form a quorum for the transaction of the business. Each trustee
shall have one vote. The decision of the majority shall prevail in any question arising
at a meeting of the trustees. In case of equality of votes the chairman shall have a
second or a casting vote. Resolution of the trustees may be passed by circular
signed by not less than 2(two) trustees and all resolutions so passed shall have the
same effect as if passed at the meeting. At least 7(seven) days clear notice of a
meeting shall be given unless all the trustees agree a shorter notice.
SECRETARY OF THE FUND
4. The trustees shall appoint one from amongst them preferably with knowledge of
accounts to be the secretary who may receive all notice, documents and other
correspondences that may be given to the trustees fro time to time. He may sign all
correspondences on behalf of the fund and exercise such powers and the trustees
may confer authorities as on him by the trustees.
LIABILITIES OF TRUSTEES
5. In addition to and not way of substitution for all indemnities conferred on trustees at
law and by statute, no trustee shall be liable for the acts, receipts, neglects or
defaults of any other trustee or for joining in any receipt or other act for conformity
or for any loss expense happening to the fund through the insufficiency or deficiency
of title to any property acquired for or on behalf of the fund, or for the insufficiency
or deficiency of any security in or upon which any of the money of the fund shall be
invested or for any loss or damage arising from the insolvency or tortuous act of any
person with whom any money, security or effect shall be deposited or for any loss
occasioned by any error of judgment on his part or for any other loss, damage or
misfortune whatever which shall happen in relation to the execution of his duties as
trustee or in relation thereto, unless the same shall happen through his own fault.
POWER TO ALTER RULES
6. The trustees shall have power to add, vary, alter or annul any of the provisions of
the rules but so as the main purpose of the fund shall not thereby be affected.
7. Any loss to the fund from any cause whatsoever not being on account of default of
the trustees and all the expenses of management and all other costs, charges and
expenses to which the trustees shall be put in connection with the fund for any
reason whatever shall be borne by and be a charge on the fund and shall be paid
there out as the trustees may determine. No member or any representative of a
member shall have any claim upon the company in respect thereof.
MEMBERSHIP
8. Every employee of the company may, subject to the approval of the trustees of the
fund, become a member and shall sign an agreement in the form annexed to these
rules as schedule “A”. An employee being admitted as a member shall continue to
be a member until termination of his service. If any question arises, as to whether an
employee is or is not entitled to become a member of the fund shall be referred to
the trustees whose decision shall be conclusive and binding upon all concerned.
ACCOUNTS OF THE FUND
12.
i. Every member shall once yearly after the 31st December of each year be
given a statement of accounts showing the amounts standing to his credit
in the fund.
ii. The accounts of the fund shall be made up to the 31st December in each
year audited by the auditors of the company.
iii. A separate account shall be kept with respect to each member in

accordance with rule made under the ordinance in this behalf.
CONTRIBUTIONS OF MEMBERS
13. Every member shall contribute to the fund at the rate of 10% (ten) of his basic
salary (ignoring fractions of a Taka) which shall be deducted by the company from
each payment of salary made to him and shall be paid by the company to the
trustees and credited to the individual account of the member.
COMPANY’S CONTRIBUTION
On making each such deduction and payment the company shall pay an equal
amount to the trustees as the company’s contribution, which will be
credited to the individual member’s account to be dealt with as in these
rules provided.
14. (a). The trustees shall on 31st December in each year prepare an account
of the total interest received and accrued due on the invested amounts to the
fund during the year ended on the above date and after deducting there from
any expenses of the management shall place the balance to Member’s
Accounts in proportion to their credit balance. This distribution of interest may
take the form of a given rate percent interest to the nearest quarter percent,
any small balance of undistributed interest being carried forward.
(b) Interest on savings certificates shall be calculated at such compound rate of
interest as would on the maturity of the certificates yield the same amount of
interest as is provided in the respective certificate rates.
(c) The Trustees shall determine what rate of interest shall be allowed from the
end of the preceding year on sums payable to a member on his leaving
service or to his nominee or legal representative on his death in the service.
ENTITLEMENT TO MEMBER’S CONTRIBUTION
Every member shall on the termination of his service for whatever cause, be
entitled to receive his own contribution and interest thereon to the date
of termination of his service. But except as provided by these rules no
member shall be entitled to receive any share of the company’s
contribution to the fund or interest thereon until he shall have served
the company for a continuous period of two years.
ENTITLEMENT TO COMPANY’S CONTRIBUTION
17. Upon cessation of employment other than by way of misconduct a member shall be
entitled to receive from the fund together with interest thereon:
a) Full contribution of the company in case of resignation after 2 years of service.
b) Full contribution of the company in all other cases other than by way of dismissal
for misconduct. Provided that the trustees may at their discretion pay to any
member the whole of the company’s contribution and interest thereon
notwithstanding that he shall not have completed any period of service specified
above.
PAYMENT UPON DEATH WHILE IN SERVICE
18. In the event of the death of a member while in the service of the company the
trustees shall hold the amount then credited or due to be credited to his account
including his share of the company’s contribution and interest thereupon trust for
such person as shall have been nominated or appointed by such member in
accordance with rules hereinafter contained.
PAYMENT IN CASE OF MISCONDUCT
19. If any member shall be dismissed from service for misconduct he shall forfeit all his
rights to the contribution of the company to his separate account and all interest
accrued thereon provided that the trustees may in their absolute discretion allow
any member to receive payment of the whole or any part of any money to which
his right has been forfeited under these rules.
SERVICE WHEN AS TO BE DEEMED TERMINATED
20. A member’s service shall not be deemed to be terminated for the purpose of these
rules by absence from work without salary with the permission of the company. The
company may nevertheless in its absolute discretion terminate the services of any
member for the purposes of these rules whether during or at the expiry of any
period of work or at any time during any absence with or without permission from
work and the statement of the company to the trustees as to the fact and date of
termination of any members services for the purpose of these rules shall be
conclusive. The company may, however, in its absolute discretion cancel any notice
of a member’s service having been terminated for the purpose of these rules at any
time before the amount or any part of the amount due to such member from the
fund has been paid to him, and on such cancellation being communicated to the
trustees the member’s services shall be deemed to have continued without
interruption.
COMPANY’S PARAMOUNT LINE
21.
i. The company shall have power to recover from the trustees any money claims
which the company may have against any member out of the amount credited to
his account in respect of the contribution of the company and interest thereon to
the extent and in the manner permissible by the ordinance.
ii.Before making any payment of the company’s contribution and interest thereon to
any member or his nominee, legal representative or dependents the trustees shall
inquire from the company what amount, if any, should be deducted there from in
respect of income tax payable under the provisions of the ordinance, and the
trustees shall deduct for income tax such amount, if any, as the company shall
direct and pay the same to the proper authority, and should the trustees fail to
deduct and pay any such amount, the company shall be entitled to recover from
the fund the amount which should have been so deducted and pay the same to the
proper authority.
NOMINATION
22. Every member shall, on being admitted as a contributor to the fund, nominate or
appoint a person as the object of such trust on the terms that such person shall
become the object of such trust only in the event of his surviving the member as
per schedule “B” hereof.
APPOINTMENT OF PERSON TO RECEIVE IN CASE OF MINOR NOMINEE
23. If the person thus nominated is, at the time of nomination, a minor or under
disability to give a legal receipt or discharge to the trustees, the member shall at
the time of such nomination as aforesaid appoint another person of full age who is
capable of giving a legal receipt and discharge and to whom the amount standing
to the credit of the member is to be paid for and on behalf of the person so
nominated as aforesaid so long as he shall be a minor or under disability to give a
legal receipt or discharge and the receipt of the said person of full age shall during
the minority or the disability of the person so nominated as aforesaid be a good
discharge to the trustees.
PROCEDURE ON DEATH OF NOMINEE OR RECEIVE OR REVOCATION OF

NOMINATION
24. In the event of the death during the life of the member of any person who shall
have been nominated as the object of such trust or appointed to receive on behalf
of a nominee under the foregoing rules or in the event of such nomination or
appointment being revoked the member shall forthwith nominate or appoint
another person in place of the nominee or appointee so expired or whose
nomination or appointment shall have been revoked.
FORM OF NOMINATION AND APPOINTMENT

25. Every nomination or appointment made under the foregoing rules shall be in
writing signed by the member making it, whose signature must be attested by two
witnesses, and shall be according to schedule “B” hereof and shall remain in full
force and effect until the death of the nominee or appointee or until the same shall
be revoked in writing by the member by whom the same was made and a fresh
nomination or appointment be in the manner aforesaid.
LAPSE IN DEFAULT OF NOMINATION
26. In the event of any member failing to appoint a nominee (and if necessary a person
to receive on behalf of the nominee), the amount to the credit or due to the credit
of such member shall at his death lapse absolutely to the fund, provided that it
shall be in the discretion of the trustees to grant the whole or any part of such
amount to the legal representatives of such deceased member or to any relative or
dependent of such deceased member whose circumstances appear to the trustees
to warrant the concession.
TIME OF PAYMENT
27. The accumulated balance due to a member shall ordinarily be payable on the day
he ceases to be a member, but in the event of death or abrupt termination of
service, it shall be payable after one month. Payment will be made upon claim by
the person entitled to payment and shall include interest up to the date on which
the amount is due to be paid and not further, if payment be not claimed within
three years from such date the amount to the credit of the member shall lapse
absolutely to the fund.
ASSIGNMENT OF INTEREST PROHIBITED
28. No assignment, mortgage of other disposition of money standing to member’ credit

shall be recognized.
ATTACHMENT
29. All money standing to the credit of any member in the books of the fund shall be
held by the trustees upon the express condition that if any prohibitory order,
attachment or process of civil or criminal court shall be served upon the trustees or
any of them with the object that such money shall be attached or be ordered to be
paid into a civil or criminal court or be ordered to be withheld from such member,
such money shall forthwith be forfeited to the use of the fund and dealt with
accordingly.
LAPSE AND FORFEITURE
30. All lapses and forfeitures occurring at any time, all profits earned at any time on the
sale of investments and all balance in the fund remaining unclaimed after three
years, shall be transferred to a separate account to be called “The Lapse and
Forfeiture Account” and shall be used and applied by the trustees primarily for
meeting the necessary expenses of the fund and a reserve against any loss to the
fund on the sale or in consequence of any depreciation of investment and secondly
for the benefit of members and/or retired members and/or dependents of deceased
members and/or any such persons collectively and/or for such purposes connected
with the Fund in such manner as the trustees shall in their absolute discretion think
fit.
INVESTMENTS OF FUND
31. All money (including the net income of the fund for the time being available for
distribution) from time to time in the hands of the trustees upon the trusts hereof
and not immediately required for making any payment to members shall be
invested in accordance with the relevant provisions of the Companies Act, 1994. So
however that the securities in which the contribution made by the employees after
the date of recognition of a Provident Fund and the interest on the accumulated
balance of such contribution are invested are payable both in respect of capital and
of interest in Bangladesh. Such investments shall be made in the names of trustees
and may, when the conditions of the investments so permit, be made payable or
transferable to the order of any two of the trustees. The trustees may from time to
time vary, transpose and sell investments and purchase order of a similar nature,
and until realization such investments shall be valued for all purposes at their cost
price without taking depreciation or appreciation into account.
DEDUCTION OF INCOME TAX
32. Before making final payment to the member or nominee, as the case may be, the
trustees shall deduct income tax, if any, under the provisions as envisaged in para
8, part B of First Schedule of the Ordinance or any other provisions of law for the
time being in force.
WITHDRAWAL FROM THE PROVIDENT FUND
33. A member shall not be entitled to withdraw any money from the amount standing
to his credit but the trustees may, in their discretion, allow the same under the
terms and conditions to be put by them on special grounds in the following
circumstances or circumstances of a similar nature:
a) to pay expenses incurred in connection with the illness of a subscriber or

a member of his family,
b) to pay for the passage over the sea or by air of a subscriber or any
member of his family,
c) to pay expenses in connection with marriages, funerals or ceremonies

which, by the religion of the subscriber, is incumbent upon him to
perform and in connection with which it is obligatory that expenditure
should be incurred,
d) to meet the expenditure on building or purchasing a house or a site for a

house or a ready made house/flat or repairing the house/flat provided
that such house/flat/site is assigned to the trustees of the fund,
e) to pay premium of Life Insurance Policy of the subscriber or of his wife /

her husband provided that the policy is assigned to the trustees of the
fund or, at their discretion, deposited with them and that receipts
granted by the Insurance Company for the premium are from time to
time handed over to trustees for the inspection by the Deputy
Commissioner of Taxes.
NO SUCH WITHDRAWL SHALL EXCEED
34.
a. The pay of the members for three months in case of withdrawal for (a), (b) and
(c) or in the case, of withdrawals for the purpose specified in sub-rule (e) of rule
33 the pay of the members for six months, or the total of the accumulation of
exempted contribution and exempted interest contained in the balance to the
credit of the members, whichever is less,
b. in the case of withdrawals for the purpose specified in sub-rule (d) of rule 33
eighty per cent (80%) of the total of accumulation of exempted contribution
and exempted interest standing to the credit of the member and
c. in the case of withdrawals for the purpose specified in sub-rule (e) of rule 33
the restriction imposed by sub-rule (a) above shall apply to each withdrawal
and not to be total withdrawals.
d. A second withdrawal shall not be permitted until the sum first withdrawn has
been fully repaid.
REPAYMENT OF WITHDRAWAL, ETC.
35. Where a withdrawal is allowed for any of the purposes referred to in rule 33, the
amount withdrawn shall be repaid in not more than sixty equal monthly
installments subject to the condition that amount of each installment shall not be
less than 20% of the basic salary of the employee availing of the withdrawal. Such
installments with interest shall be deducted from the monthly salary of the
member.
INTEREST ON REPAYMENT WITHDRAWALS AND MODE OF RECOVERY
36. The rate of interest on the amount withdrawn by members shall bear interest at the
rate as to be decided by the Board of Trustees yearly subject to the condition that
the rate shall not be less than the rate of income/interest earned by the fund in the
last year.
CLOSURE OF THE FUND
37. The trustees shall have power to close the fund at any time if considered advisable
or necessary, in which event the money of the fund will be distributed amongst the
members in accordance with their accounts. The fund shall be dissolved only with
the consent of their majority of the beneficiaries.
ADDRESS OF THE TRUSTEE AND THE SECRETARY
38. The address at which the trustees and the secretary of the fund may be contacted
is as follows: -
PULS TRADING FAR EAST LTD.
.....................................................
.....................................................
Dhaka, Bangladesh.
FORMS
39. The forms, which are prescribed in the next page, for use for the purpose
mentioned on the respective forms:
IN WITNESS WHEREOF the company and the trustees put their hands the day and year
first above written.
For PULS TRADING FAR EAST LTD.
Signature in presence of
witness: Trustee(s)
1.
Managing Director, Member

and the Chairman of the
Trustee
2. Mr. ..............................
........................., Member of
the Trustee
3. Mr. ..............................
........................., Member of
the Trustee
Mr. ..............................
........................., Member of
the Trustee
Mr. ..............................
........................., Member of
the Trustee
Mr. ..............................
........................., Member &
Secretary of the Fund &
Trustee
Mr. ..............................
Office Peon, Member of the
Trustee
FORM “A”
DECLARATION TO BE SIGNED BY ALL MEMBERS
(RULE-11)
The Trustees
PULS TRADING FAR EAST LTD. Employees’ Provident Fund
.......................................
.......................................
Dhaka, Bangladesh
Dear Sir(s),
I, hereby apply to become a member of the PULS TRADING FAR EAST LTD. Employees’
Provident Fund, effective from ................................
I hereby declared the I have had read over to me the Rules and Regulations of the Fund and
have understood them, and I agree to abide by them and by any subsequent additions to
and alternations in the same as may be from time to time hereafter lawfully be made.
I also agree to accept as binding the decisions of the Trustees of the Provident Fund on any
question, which may arise in connection with my membership.
I hereby permit you, if my membership is accepted, to authorize company to deduct 10% of

my basic salary every month as my contribution to the Fund.
Name in full :----------------------------------------------------------
Date of birth :-----------------------------------------------------------
Date of joining service :-----------------------------------------------------------
Signature
Bangladesh, the ………………………th day of …………………………….20 ……

FORM-“B”
(RULE-22)
PULS TRADING FAR EAST LTD. EMPLOYEES’ PROVIDENT FUND
NOMINATION
The Trustees
Puls Trading Far East Ltd. Employees’ Provident Fund
.......................................
.......................................
Dhaka, Bangladesh
I, …………………………………………………………………son/daughter/wife of
……………………………………hereby nominate the person(s) mentioned below, who is/are the
member(s) of my family as defined in Rule 2 (i) of the fund, to receive, in the event of my
death the amount that may stand to my credit in the Fund, in the manner shown against
his/her/their name(s) or in the event or any such person(s) not being alive at the time of my
death to dispose of it in the manner prescribed under Rule 22 the Fund.
I hereby appointed the person(s) named in column 5 hereof to receive payment on behalf of
nominee(s) who is/are minor(s) or is/are suffering from a legal disability.
Name and Relationship Whether minor Amount or Name and address

address of with the or suffering from share of of the person to
the member any legal accumulation whom payment is
nominee(s) disability to be paid to to be made on
the each behalf of minor or
legally disable
person
1 2 3 4 5
Dated, this the ……………………………th day of ………………………………….20………
Witnessed by:
1. Signature ……………………………….
Name ……………………………………
Address …………………………...
Signature of the member
PF Number ……………..
2. Signature…………………………..
Name……………………………….
Address……………………………..
Secretary of the Fund
Note : This column should be filled in so as to cover the whole amount that may stand to the
credit of the member in the Fund.
FORM – “D”
(RULE-33)
PROVIDENT FUND WITHDRAWAL FORM
The Secretary
.......................................
.......................................
Dhaka, Bangladesh.
Dear Sir,
This is to inform you that my service with Firm ended on .................. due to voluntary
resignation/termination/retirement/ closure of post. I would be glad if you would kindly close
my Provident Fund and arrange to settle the balance lying credit to my account at the
earliest.
Yours faithfully,
Signature ...................................................... Recommended by
Name (block) ...................................................... Designation:

(With seal & date)
Membership ......................................................
No.
P/F joining ......................................................
date
To be Certified Accountant
Last P/F contribution month ......................................................

Loan Sl. No. .............................................................................
Loan outstanding balance .........................................................
Interest due ............................................................................
Others ....................................................................................
___
Signature
APPROVED BY THE BOARD OF TRUSTEES
Approved in the ............................. meeting of the Trustee Board Members of Puls Trading
Far East Ltd. Employees’ Provident Fund hear on ....................................
__________
Secretary
FORM – “E”
(RULE-12)
SECOND SCHEDULE
(RULE-47)
Balance Certificate
It is hereby certified that the balance standing in the books of the Employees’ Provident
Fund of Puls Trading Far East Ltd. to the credit
of .................................................................................................... .........................................
............................................................................................................
on ................................................... was
Taka .............................................................................
Dated this :
Entered :
Examined :
Yours faithfully,
_________________________
Signature of the Secretary

of the Fund
The pros and cons of Provident Fund (PF)
The BEST/Pros of Provident Fund
1. Lowest risk possible :
There is no chance of someone running away with your money. Or later on being
told that there is no way your money can be returned to you. If the PF is a
recognized scheme, so you can be sure the fund kept on a bank account. This is the
highest security an investment can have and, therefore, the safest.
2. Tax rebate on money invested
As per Income Tax Ordinance, 1984 PF contributions (along with your subscriptions
to other schemes that qualify for rebate benefits), are eligible for a 10% tax rebate.
The maximum you can invest in PF to avail of the rebate per annum.
3. Great returns
An investment in PF will earn you 10% per annum. But because of the tax rebate,
your actual return of 10% works out to be higher.
Moreover, the returns are compounded. That means you not only earn interest in
the money you put in, but you earn interest on the interest earned, too.
4. No tax on interest earned
The interest earned from a recognized scheme is totally exempt from tax under Six
schedule, Part A of the Income Tax Ordinance, 1984.
5. Flexibility of investment
You can invest up to a maximum of Rs 60,000 per annum in the PPF. Some
categories of investors, like authors, can go up to Rs 70,000. The minimum that you
must put in every year is Rs 500.
Besides having such a huge leeway in terms of the amount of money to be

invested, you can invest the money in up to 12 installments. You don't have to put it
all in one go. Each installment can be whatever amount you want it to be. They
need not all be identical.
6. Exempt from all wealth tax :
All the balance that accumulates over time is exempt from wealth tax. Also, should
you default on any loan payments or declare bankruptcy and cannot repay your
loans, the amount in your PPF account cannot be attacked by the courts.
The worst of of Public Provident Fund - PPF (Cons)
1. The interest rate keeps changing
It was initially 12% per annum, dropped to 11%, then 9.5% and is now 8%. This rate
of interest is fixed by the government and there is nothing you can do about it.
How to make this work for you: If the interest rate on PPF declines, interest rates on
all other deposits (company and bank) and bonds also declines. So, frankly, there
are no other alternative fixed-return investments that can compete because,
overall, the interest rates are declining.
2. Lengthy lock-in period :
Fifteen years to be exact. But, in actuality, it works out to 16 years since the last
contribution is made in the 16th financial year. Even if you make an investment on
the last day of your account (the day it is due to mature), you will still get a tax
rebate. But, of course, you will not earn interest on that amount on the last day.
How to make this work for you: Use this as a retirement planning tool. Money
you will never touch. If you are just 22, you will get the money when you are around
38. You can use it to prepay your housing loan then.
3. Interest is calculated on the lowest balance :
Interest is calculated on the lowest balance between the fifth and the last day of the
month of March. Let's say you have Rs 100,000 in your PPF account and on the
10th, you deposit an additional Rs 10,000. Your interest will be calculated on Rs
100,000 (not Rs 110,000).
How to make this work for you: If making a last minute deposit at the end of the
financial year, do so before March 5.
4. Lack of liquidity :
Your money is stuck for years on end. It is not as easy as selling some shares or
mutual fund units.
How to make this work for you: Take a loan from the third year of opening your
account to the sixth year. So if the account is opened during the financial year
1997-98, the first loan can be taken during financial year 1999-2000 (the financial
year is from April 1 to March 31).
The loan amount will be up to a maximum of 25% of the balance in your account at
the end of the first financial year. In this case, it will be March 31, 1998.
If you repay the loan in 36 months, interest will be charged at 12% pa. Otherwise,
interest will be charged on the outstanding sum at 6% per month. You can obtain a
second loan before the end of the sixth financial year if the first one is fully repaid.
You can make a partial withdrawal only after five financial years are completed from
the end of the year in which the initial subscription was made. So, in effect, it works
out from the seventh year onwards.
The amount of withdrawal is limited to 50% of the balance in your account at the
end of the fourth year immediately preceding the year in which the amount is to be
withdrawn; or at the end of the preceding year, whichever is lower.
For example, if the account is opened in 1993-94 and the first withdrawal is made
during 1999-2000, the amount of withdrawal will be limited to 50% of the balance
as on March 31, 1996, or March 31, 1999, whichever is lower.
Provisions regarding repayments :

4.(1) When under the rules of any Government or Railway Provident Fund the sum standing to
the credit of any subscriber or depositor, or the balance thereof after the making of any deduction
authorised by this Act, has become payable, the officer, whose duty it is to make the payment
shall pay the sum or balance, as the case may be, to the subscriber or depositor, or, if he is dead,
shall -
(a) if the sum or balance, or any part thereof, vests in a dependant under the provisions of section
3, pay the same to the dependant or to such person as may be authorised by law to receive
payment on his behalf; or
(b) if the whole sum or balance, as the case may be, does not exceed five thousand 9[ Taka], pay
the same, or any part thereof, which is not payable under clause (a), to any person nominated to
receive it under the rules of the Fund, or, if no person is so nominated, to any person appearing to
him to be otherwise entitled to receive it; or
(c) in the case of any sum or balance, or any part thereof, which is not payable to any person
under clause (a). or clause (b) pay the same,-
(i) to any person nominated to receive it under the rules of the Fund, on production by such
person of probate or letters of administration evidencing the grant to him of administration to the
estate of the deceased or a certificate granted under the 10[ Succession Act, 1925,] entitling the
holder thereof to receive payment of such sum, balance or part, or
(ii) where no person is so nominated, to any person who produces such probate, letters or
certificate:
Provided that, where the whole or any part of any sum standing to the credit of the subscriber or
depositor has been assigned to any other person before the commencement of this Act, and
notice in writing of the assignment has been received by the officer from the assignee, the officer
shall, after making any deduction authorised by this Act and any payment due under clause (a) to
or on behalf of the widow or children of the subscriber or depositor -
(i) if the subscriber or depositor or, if he is dead the person to whom in the absence of any valid,
assignment the sum or balance would be payable under this sub-section gives his consent in
writing, pay the sum or part or the balance thereof, as the case may be, to the assignee, or
(ii) if such consent is not forthcoming, withhold payment of the sum, part or balance, as the case
may be, pending a decision of a competent Civil Court as to the person entitled to receive it.
(2) The making of any payment authorised by sub-section (1) shall be a full discharge to the
Government or the railway administration, as the case may be, from all liability in respect of so
much of the sum standing to the credit of the subscriber or depositor as is equivalent to the
amount so paid.
Rights of nominees :
5.(1) Notwithstanding anything contained in any law for the time being in force or in any
disposition, whether testamentary or otherwise, by a subscriber to, or depositor in, a Government
or Railway Provident Fund of the sum standing to his credit in the fund, or of any part thereof,
where any nomination duly made in accordance with the rules of the Fund, purports to confer
upon any person the right to receive the whole or any part of such sum on the death of the
subscriber or depositor occurring before the sum has become payable or before the sum. having
become payable, been paid, the said person shall on the death as aforesaid of the subscriber of
depositor, become entitled, to the exclusion of all other persons, to receive such sum or part
thereof, as case may be, unless
(a) such nomination is at any time varied by another nomination made in like manner or
expressly cancelled by notice given in the manner and to the authority prescribed by those rules,
or
(b) such nomination at any time becomes invalid by reason of the happening of some
contingency specified therein, -
and if the said person predeceases the subscriber or depositor, the nomination shall, so far as it
relates to the right conferred upon the said person, become void and of no effect:
Provided that where provision has been duly made in the nomination in accordance with the
rules of the fund, conferring upon some other person such right in the stead of the person
deceased, such right shall, upon the decease as aforesaid of the said person, pass to such other
person.
(2) Notwithstanding anything contained in the Succession Act, 1925], any person, who becomes
entitled as aforesaid, may be granted a certificate under that Act entitling him to receive
payment of such or part, and such certificate shall not be deemed to be invalidated or superseded
by any grant to any other of person of probate or letters of administration to the estate of the
deceased.
(3) The provisions of this section as amended by sub-section (1) of section 2 of the Provident
funds (Amendment) Act, 1946, shall apply also to all such nominations made before the date of
the commencement of that Act:
Provided that the provisions of this section as so amended shall not operate to affect any case, in
which before the said date any sum has paid, or has under the rules of the Fund become payable
in pursuance of any nomination duly made in accordance with those rules.
Power makes deductions :
6. When the sum standing to the credit of any subscriber or depositor in any Government or
Railway Provident Fund which is contributory Provident Fund becomes payable, there may, if
the authority specified in this behalf in the rules of the Fund so directs, be deducted therefrom
and paid to Government or the Railway Administration, as the case may be,-
(a) any amount due under a liability incurred by the subscriber or depositor to Government or the
Railway Administration, but not exceeding in any case the total amount of any contributions
credited to the account of the subscriber or depositor and of any interest or increment which has
accrued on such contributions; or
(b) where the subscriber or depositor has been dismissed from his employment for any reasons
specified in this behalf in the rules of the Fund, or where he has resigned such employment
within five years of the commencement thereof, the whole or any part of the amount of any such
contributions, interest and increment.
Protection for acts done in good faith
7. No suit or other legal proceeding shall lie against any person in respect of anything which is in
good faith done or intended to be done under this Act.
Power to apply the act to the Provident Funds
8.(1) the Government may, by notification in the official Gazette, direct that provisions of this
Act shall apply to any Provident Fund established for the benefit of its employees by any local
authority within the meaning of the Local Authorities Loans Act, 1914, and, on the making of
such declaration, this Act shall apply accordingly, as if such Provident Fund were Government
Provident Fund and such local authority were the Government.
(2) The Government may, by notification in the official Gazette, direct that the provisions of this
Act shall apply to any Provident Fund established for the benefit of the employees of any of the
institutions specified in the Schedule, or of any group of such institutions, and, on the making of
such declaration, this Act shall apply accordingly, as if such Provident Fund were a Government
Provident Fund and the authority having custody of the Fund were the Government:
Provided that section 6 shall apply as if the authority making the contributions referred to in that
section were the Government.
(3) The Government may, by notification in the official Gazette, add to the Schedule the name of
any public institution it may deem fit, and any such addition shall take effect as if had been made
by this Act.
13
[ * * *]
[Omitted]
9. [Omitted by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration)
Act, 1973 (Act No. VIII of 1973).]
[Repealed]
10. [Repealed by section 2 and Schedule of the Repealing Act, 1927 (Act No. XII of 1927).]
1
Throughout this Act, except otherwise provided, the words “Bangladesh” and `Government`
were substituted, for the words “Pakistan” and “Central Government” or “appropriate
Government” respectively by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And
Declaration) Act, 1973 (Act No. VIII of 1973)
2
The words `the Government` were substituted, for the words and commas `the Secretary of
State, the Central Government, the Crown Representative or any Provincial Government` by
section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act
No. VIII of 1973)
3
The word `Republic` was substituted, for the word `State` by section 3 and 2nd Schedule of the
Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
4
The words `and references in this Act to the Government shall be construed accordingly` were
omitted by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act,
1973 (Act No. VIII of 1973)
5
Sub-clause (i) was omitted by section 3 and 2nd Schedule of the Bangladesh Laws (Revision
And Declaration) Act, 1973 (Act No. VIII of 1973)
6
Sub-clause (ii) was substituted, for the former sub-clause (ii) by section 3 and 2nd Schedule of
the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
7
The words `the railway` were substituted, for letter and word `a railway` by section 3 and 2nd
Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
8
The word `Provincial` was omitted by section 3 and 2nd Schedule of the Bangladesh Laws
(Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
9
The word `Taka` was substituted, for the word `rupees` by section 3 and 2nd Schedule of the
10
The words, commas and figure `Succession Act, 1925,` were substituted, for the words,
commas and words `Succession Certificate Act, 1889, or under the Bombay Regulation VIII of
1827,` by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act,
1973 (Act No. VIII of 1973)
11
The words, comma and figure `Succession Act, 1925` were substituted, for the words, comma
and figures `Succession Certificate Act, 1889 or the Bombay Regulation VIII of 1827` by section
3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No.
VIII of 1973)
12
The commas and words `, or that Regulation, as the case may be,` were omitted by section 3
and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII
of 1973)
13
Sub-section (4) and the Explanation were omitted by section 3 and 2nd Schedule of the
PROVIDENT FUND Laws:
i.) GENERAL PROVIDENT FUND RULES, 1979
ii.) CONTRIBUTORY PROVIDENT FUND RULES, 1979
iii.) PROVIDENT FUND ACT, 1925 .

iv.) GOVERNMENT & AUTONOMUS BODIES EMPLOYEE'S BENEVOLENT FUND
& GROUP INSURANCE ORDINANCE, 1982
v.) GOVERNMENT & AUTONOMUS BODIES EMPLOYEE'S BENEVOLENT FUND &

GROUP INSURANCE RULES, 1982
vi.) BANGLADESH CHA SRAMIK KALLAYAN FUND ORDINANCE, 1986
PROVIDENT FUND MINUS BALANCES /OVER PAYMENTS
Pay bills of Scientists and Subordinates staff working in Defence Laboratories are audited by the
respective "R&D" Controllers. The individual submitted an application on 22-3-1994 for final
settlement of his Provident Fund Accounts which was forwarded by the organization to the
Bangalore vide their letter No. ADE/8903/Fin/GPF Final dt. 22-3-1994 along with statement of
recoveries of subscription during 12 months preceding retirement i.e., from 8/92 to 7/93.
Similarly Final withdrawals/Advances drawn by the individual during 12 months prior to
retirement were also furnished for verification and onward transmission of the final settlement
documents to copy of statement of subscription and withdrawals received from the organization
is placed in Annexure ‘A’. The verified the subscription details from the pay bills concerned and
the Final settlement papers were forwarded to the on 4-4-1994 for final payment of GP Fund
balance to the individual. The Account of the individual was accordingly finalised and the GPF
amount of Rs. 42216/- authorised for payment by the CDA(R&D) New Delhi vide their letter
No. FC/R&D/91441 dt 15-4-94.
2. During August ‘97, vide their letter no. FC/II/R&D/91441/DB/19 dt. 28-8-97, CDA(R&D)
New Delhi intimated the CDA(R&D) Bangalore that a minus balance of Rs. 29000/- persisted in
the Provident Fund Account of the above named individual and that the amount was debited to
his account based on a debit schedule processed by the Pay section of CDA(R&D) Bangalore
during July ‘93. On verification of the records it was noticed that the individual was paid a Final
withdrawal of Rs. 29000/- from his Fund Account during July ‘93. The debit schedule was
processed alongwith other schedules of July ‘93 and included in batch No. 771 for the year 1993-
94. The concerned Tape / Floppy was forwarded to CDA(R&D) New Delhi on 10-1-94 itself
whereas the Final settlement papers of the individual were forwarded to them on 4-4-94 i.e., after
a gap of 3 months of despatch of the Tape / Floppy containing the payment of Rs. 29000/- to the
subscriber.
3. Thus an overpayment of more than Rs. 50,000/-(Principal + interest upto date) had taken place
in provident fund accounts of a subscriber due to failure to account for a Final withdrawal drawn
prior to retirement.
4. Extracts of Para 115 of OM Part II Vol I and paras 148 and 150 of OM Part V (Fund manual)
containing instructions on processing of Fund advances/ withdrawals by the Pay audit offices
and also communications to be sent to Fund Accounting officer are placed in Annexure B.
5. In the above case please discuss the following:
a) Lapses on the part of the Unit/Pay Audit Officer/ Fund Accounting Officer.
b) Assuming that you were the Auditor who dealt with the case in the Pay Audit office i.e.,
CDA(R&D) Bangalore, how you could have avoided the over payment ?
c) What is the responsibility of the Fund Accounting Officer (CDA(R&D) New Delhi) in this
case ? Are you satisfied with his action ?
d) Narrate all the procedural lapses that contributed to the over payment.
e) How do you avoid recurrence of such over payments in Provident Fund Accounts in future?
EMPLOYEES' PROVIDENT FUND SCHEME 1952

Employee Definition:
"Employee" as defined in Section 2(f) of the Act means any person who is employee for wages
in any kind of work manual or otherwise, in or in connection with the work of an establishment
and who gets wages directly or indirectly from the employer and includes any person employed
by or through a contractor in or in connection with the work of the establishment.
Membership:
All the employees (including casual, part time, Daily wage contract etc.) other than an excluded
employee are required to be enrolled as members of the fund the day, the Act comes into force in
such establishment.
Basic Wages:
"Basic Wages" means all emoluments which are earned by employee while on duty or on leave
or holiday with wages in either case in accordance with the terms of the contract of employment
and witch are paid or payable in cash, but does not include
a. The cash value of any food concession;

b. Any dearness allowance (that is to say, all cash payment by whatever name called paid to
an employee on account of a rise in the cost of living), house rent allowance, overtime
allowance, bonus, commission or any other allowance payable to the employee in respect
of employment or of work done in such employment.
c. Any present made by the employer.
Excluded Employee:
"Exclude Employee" as defined under para 2(f) of the Employees' Provident Fund Scheme
means an employee who having been a member of the fund has withdraw the full amount of
accumulation in the fund on retirement from service after attaining the age of 55 years; Or An
employee, whose pay exceeds Rs. Five Thousand per month at the time, otherwise entitled to
become a member of the fund.
Explanation:
'Pay' includes basic wages with dearness allowance, retaining allowance, (if any) and cash value
of food concessions admissible thereon.
Employee Provident Fund Scheme:

Employees' Provident Fund Scheme takes care of following needs of the members:
(i) Retirement (ii) Medical Care (iii) Housing
(iv) Family obligation (v) Education of Children
(vi) Financing of Insurance Polices
How the Employees' Provident Fund Scheme works:

As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if
any, payable to employees per month. The rate of contribution is 10% in the case of following
establishments:
• Any covered establishment with less than 20 employees, for establishments cover prior to
22.9.97.
• Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of
the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been
declared as such by the Board for Industrial and Financial Reconstruction,
• Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and
• Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e)
Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund
Scheme by the employee and employer will be as under with effect from 22.9.1997.
Employees' Provident Fund Interest rate:

The rate of interest is fixed by the Central Government in consultation with the Central Board of
trustees, Employees' Provident Fund every year during March/April. The interest is credited to
the members account on monthly running balance with effect from the last day in each year. The
rate of interest for the year 1998-99 has been notified as 12%. The rate of interest for 99-2000
w.e.f. 1.7.'99 was 11% on monthly balances. 2000-2001 CBT recommended 10.25% to be
notified by the Government.
Benefits:
A) A member of the provident fund can withdraw full amount at the credit in the fund on
retirement from service after attaining the age of 55 year. Full amount in provident fund can also
be withdraw by the member under the following circumstance:
• A member who has not attained the age of 55 year at the time of termination of service.
• A member is retired on account of permanent and total disablement due to bodily or
mental infirmity.
• On migration from India for permanent settlement abroad or for taking employment
abroad.
• In the case of mass or individual retrenchment.
B) In the case of the following contingencies, the payment of provident fund be made after
complementing a continuous period of not less than two months immediately preceding the date
on which the application for withdrawal is made by the member:
• Where employees of close establishment are transferred to other establishment, which is

not covered under the Act:
• Where a member is discharged and is given retrenchment compensation under the
Industrial Dispute Act, 1947.
Withdrawal before retirement:
A member can withdraw upto 90% of the amount of provident fund at credit after attaining the
age of 54 years or within one year before actual retirement on superannuation whichever is later.
Claim application in form 19 may be submitted to the concerned Provident Fund Office.
Accumulations of a deceased member:

Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal
heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office.
Transfer of Provident Fund account:

Transfer of Provident Fund account from one region to other, from Exempted Provident Fund
Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer
Application in form 13 may be submitted to the concerned Provident Fund Office.
Nomination:
The member of Provident Fund shall make a declaration in Form 2, a nomination conferring the
right to receive the amount that may stand to the credit in the fund in the event of death. The
member may furnish the particulars concerning himself and his family. These particulars
furnished by the member of Provident Fund in Form 2 will help the Organization in the building
up the data bank for use in event of death of the member.
Annual Statement of account:

As soon as possible and after the close of each period of currency of contribution, annual
statements of accounts will de sent to each member through of the factory or other establishment
where the member was last employed. The statement of accounts in the fund will show the
opening balance at the beginning of the period, amount contribution during the year, the total
amount of interest credited at the end of the period or any withdrawal during the period and the
closing balance at the end of the period. Member should satisfy themselves as to the correctness f
the annual statement of accounts and any error should be brought through employer to the notice
of the correctness Provident Fund Office within 6 months of the receipt of the statement.
Provident Fund Investment:
The government is planning to invest the employees’ provident fund in the local bond markets to
increase the balance of the funds, officials of the finance ministry have said.
They said the balance of the provident fund declined to around Tk 260 crore at the beginning of
the current financial year from Tk 2,060 crore in the last fiscal year due to sharp increase in the
rate of withdrawal from the provident fund in recent times.
A reason for the increase in the rate of withdrawal from the provident funds may be that people
are investing in the booming capital market. We are planning to invest the provident funds in the
bond market so that investors get good return as the interest rate of bonds is much higher than
bank interest rates,’ said an official of the finance ministry adding that the fund was lying idle in
the bank.
A primary decision to invest the provident funds in bond markets was taken at a meeting of the
cash and debt management committee, headed by a joint secretary of the ministry, last month.
The finance ministry would work out strategies for making the funds conducive for investment,
the meeting decided.
The ministry would submit a report to the next CDMC meeting, said an official.
He said there were some restrictions in investing the provident fund and Bangladesh Bank would
appoint an actuary, who would recommend how the government could overcome the restrictions.
The CDMC meeting also sought Bangladesh Bank’s advice in this regard.
Officials said that they were encouraged by the Indian government’s move to invest provident
fund in the local share and bond markets this year. ‘Besides, the Chile government invested the
fund in the local share and bond market earlier, building up the fund equivalent to 68 per cent of
the country’s GDP,’ said another official.
A World Bank report said Bangladesh’s bond market represented the smallest in South Asia,
accounting for only 12 per cent of the country’s GDP.
With $7.35 billion, the size of the country’s bond market is far smaller than the banking assets,
estimated at nearly $32 billion, equivalent to more than 50 per cent of the GDP, the bank’s report
on ‘South Asian domestic debt market’ said.
Sri Lanka has the largest bond market in the region based on the value of outstanding bonds as
percentage of GDP, followed by India, Pakistan, Nepal and Bangladesh.
India’s bonds amounted to 35 per cent of GDP while Nepal’s domestic bonds were 15 per cent.

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Internship Report

Department of Business Administration

Daffodil International University

Professor Shahjahan Mina

Department of Business Administration

Daffodil International University

Subject :Submission of Internship Report

It gives me immense pleasure to Submit the internship report on “Provident Fund

It expresses my gratitude to you for providing me the opportunity to learn about

Topics Page Number

Chapter One (01)

Chapter Two (02)

Provident Fund In Bangladesh 34

Investment of Provident Fund in Bangladesh

Provident Fund Deed & Rules 35

Difference Between Provident Fund & Gratuity

About Puls Trading Far East Limited

Provident Fund Scheme:

Materiality Worksheet of ZFCL

Definition of Provident Fund:

Knowledge Gained From Provident Fund Definition:

 Provident fund is good for saving schemes for salaried people.

Provident Fund Act, 1925 :

(2) It extends to the whole of Bangladesh.

Defined contribution to provident Fund and defined benefits to Gratuity Fund

Sec.38. Provident Fund

O.347-A. For purpose of payment of premiums toward an Insurance Policy of a Subscriber,

(a) Quits the service.

The Registrar shall :

CH. XLV PROVIDENT FUND AND GRATUITY 127

(2) If the Registrar receives notice:

(b) a charge or encumbrance on or

Payment of Gratuity to Employees Rules

Provided further that payment of gratuity to an employee who is in occupation of University

132 PROVIDENT FUND AND GRATUITY CH. XLV

Gratuity to a permanent employee:

University employee for each completed six monthly period of

qualifying service subject to a maximum of 16½ times the

conditions remaining of the scheme as annotation in Notification No.

F.15(3)/FA (Rules) 97 dated March 21, 1998 of the finance

department, Government of Rajasthan

(ii) For calculating the completed six monthly period of continuous

service the period or periods spent by the employees on leave without

pay or period/periods spent on deputation for which no P.F.

employees in lieu of the foreign employer shall be excluded. Gratuity

Gratuity to a temporary employee :

9. A person in temporary employment who ceases to be in the University service on account

( i) 5 years or more but : 12 times of emoluments less than 20 years.

Gratuity on resigning from service:

CH. XLV PROVIDENT FUND AND GRATUITY 133

(b) Continuous service of 7 years ’’ 30 % ’’ or more but less than 9 years ’’

(p) 25 years and above ’’ 100% ’’

(b) personal pay which is granted in lieu of loss of substantive pay,

(c) special pay attached to a post, and

(d) Dearness pay, if any.

2. If an employee holding a permanent post in a substantive

3. If immediately before release from University service on superannuation or retirement

under Res. No.4, dated 6.3.1969.