EPF RulesDRAFT ASIM

NETKOM TECHNOLOGIES (PRIVATE) LIMITED
EMPLOYEES PROVIDENT FUND RULES

TABLE OF CONTENTS
1. 3
2. 3
3. Error! Bookmark not defined.
4. 4
6. 4
8. 5
9. 7
10. 7
11. 8
12. 8
13. 8
16. 9
17. 9
18. 10
19. 10
20. 10
APPENDIX A 9
PERMITTED WITHDRAWALS.- 9
LIMITS ON WITHDRAWALS.- 10
SECOND WITHDRAWALS.- 10
REPAYMENT OF AMOUNTS WITHDRAWN.- 10
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1. NAME
The fund shall be called NETKOM TECHNOLOGIES Provident Fund.
2. DEFINITIONS
For the purpose of these Rules, unless there is anything repugnant in the subject or context, the term:
a) “Accumulated Balance Due to a Member” means the balance due to the credit of a Member
or such portion thereof as may be claimable by him under these Rules on the day he ceases to be
an employee of the Company.
b) “Board” means the Board of Trustees constituted under paragraph (1) of the Trust Deed and
/or appointed by the CEO as per provisions of the Trust Deed.
c) “Company” means Netkom Technologies (Private) Limited.
d) “Contributions” means any sums credited by or on behalf of any Member out of his/her salary,
or by the Company out of its own moneys, to the individual account of a Member in the Fund.
e) “Employees” means an employee participating in the Fund, but does not include a personal or
domestic servant.
f) “Family” means Member’s wife, his children; parents, sisters and brothers who are exclusively
dependent on the Member.
g) “Financial Year” means the period beginning on the first day of July and ending on the 30th
day of June.
h) “Fund” means the provident fund Established through Trust Deed and by/under these rules.
“Member” means an employee of the Company who by these Rules is admitted to membership
of the Fund.
i) “Month” means calendar month.
j) “Rules” means these Rules as in force for the time being.
k) “Salary” means the basic monthly wage/salary received by a Member from the Company,
excluding any allowances, commissions, bonus, ex gratia payments, payment for overtime, pay in
lieu of notice and any other premium payments.
l) “Secretary” means the secretary of the Employees Provident Fund Trust.
m) “Manager Accounts” means the manager accounts of the Company.
n) “Trust Deed” means Netcom Technologies (Private) Limited Employees Provident Fund Trust Commented [1]: Name of the trust need to be same in trust
deed and rules.
Deed.
o) “Trustees” means the Trustees of the Fund appointed in accordance with the Trust Deed.
3. ESTABLISHMENT
These Rules are intended for the purpose of establishing the Fund as a “Recognized Provident Fund”
within the meaning of Section 2(37) of the Income Tax Ordinance, 2001 and shall be deemed to have
come into force and operation as from July 01, 2018.
The Fund shall consist of all sums contributed by the Netkom Technologies (Private) Limited, by its
employees who are members of the Fund, profit occurring on the total thereof and any other
accretions thereto by investment or otherwise in accordance with these rules and laws of Pakistan.
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4. OBJECTIVE
The objective of the Fund is to accumulate certain sums for the benefit of the employees of Netkom
Technologies (Private) Limited and their families in the event of the employees’ termination of
service, resignation, retirement, insanity or death.
5. MEMBERSHIP
5.1. Every permanent employee of the Company can apply to the Trustees to become member of
the fund. The Trustees at their sole discretion may approve an application or reject the same.
5.2. An employee admitted to membership of the fund shall not be permitted to resign his
membership while in service of the Company but if he ceases for any reason whatsoever to be in
the service of the Company. He shall thereupon cease to member of the fund.
5.3. On becoming the member, the employee shall sign a declaration in Form-1 set out in appendix
hereto.
5.4. These Rules for the time being in force shall be binding upon every member on signing the said
declaration.
5.5. An employee must put in six months’ service before he becomes eligible to Company’s
contribution to fund and the total of other income. The six months service will be counted from
the date of appointment. However, in case of death or cessation of service due to physical
incapacity of the employee, full amount standing to his credit shall be paid to his nominee.
5.6. Any Member, whose employment is terminated by the Company or who leaves the service of
the Company for any reason whatsoever, and subsequently, re-joins the service of the Company
and become a Member, shall not be entitled to reckon his previous service with the Company as
service for the purpose of membership.
5.7. Irrespective of length of service, the Company’s contribution and other income credited to
Member’s account is not payable in case of dismissal from services due to fraud.
6. NOMINATION
6.1. Every employee on being admitted as a Member of the Fund shall nominate on Form-2 a
person or persons (not exceeding two) who, in the event of death or insanity of the member
whilst in the service of the Company, shall receive payment of his accumulated balance due
provided always that such payment shall be subject to the laws of succession applicable to such
Member.
6.2. In case of more than one nominee, the Member shall mention the percentage to balance to be
distributed between each nominee or the Member shall mention the nominee to be paid in
priority on the other.
6.3. The member will be entitled to cancel the nomination whenever he likes during the continuance
of this service with the Company and nominate another person or persons in which case he will
have to inform the Trustees in writing and shall submit a fresh form, the nomination shall forth-
with stand cancelled.
6.4. In the event of the death, during the life of the Member, of any person who shall have been
nominated as aforesaid or in the event of such nomination being revoked, the Member shall if
no other nominee remains forth-with nominate another person in the place of the nominee so
dying or whose nomination shall have been revoked.
6.5. If a person thus nominated shall at the time of his nomination be a minor or under disability to
give a legal receipt or discharge to the Trustees, the Member shall at the time of such
nomination appoint another person, competent to contract, and to give a legal receipt and
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discharge and to whom the amount payable to the nominee is to be paid for and on behalf of
such nominee as long as he shall be a minor or under disability and the receipt of such person
shall during the minority or disability of the nominee be a good discharge of the Trustees.
6.6. On the death of a Member who having not appointed a nominee (or required a person to
receive on behalf of the nominee), the amount due to such Member shall be paid in the absolute
decision of the Trustees with the consent of the CEO of the Company to his heirs or legal
representatives or to any relative or dependent of the deceased Member or holder of the
succession certificate whose circumstances in the opinion of the Trustees warrant the
concession and in such proportions as the Trustees deem fit and such payment shall be a good
discharge to the Trustees and the Company against all claims whatsoever in respect of the Fund
by anyone whomsoever claiming under or through such deceased Member.
7. ASSIGNMENTS NOT TO BE RECOGNIZED

7.1. If any Member attempts to transfer or assign by way of security or otherwise his profit/income
or any part thereof in the Fund or do or suffer any act or thing, whether by operation of law or
otherwise having effect that the interest belonging to such Member absolutely would become
wholly or in part payable to any other person or persons, body or corporation, NO such transfer
or assignment shall be valid and the Trustees shall not recognize or be bound by any notice to
them or any of them of any such transfer or assignment or attempt and the amounts standing to
the credit of such Member in his account and all other benefits accruing to him as a Member of
the Fund shall cease to be payable and shall be fortified to General Reserve Fund.
7.2. All moneys 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 of process of a
Civil or Criminal Court shall be served upon the Trustees or any of them with the object that
such moneys shall be attached or ordered to be paid into Civil or Criminal Court or ordered to
be withheld from such members, such money shall forthwith be forfeited to the General
Reserve Fund and dealt with accordingly.
PROVIDED ALWAYS that the Trustees may in their absolute discretion with the consent of the
CEO of the Company pay the whole or any part of the amount so forfeited for the benefit and
maintenance of a Member or his dependents or family.
8. CONTROL AND MANAGEMENT OF FUND

8.1. POWERS OF TRUSTEES
Save as provided under these rules and the Trust Deed, the Trustees shall have the entire
control over the management of the Fund and shall be vested with all powers, authorities and
discretions necessary or expedient for that purpose in addition to any express powers conferred
by the Deed or these Rules.
8.2. FUNCTIONS OF TRUSTEES Commented [2]: This clause should be revisited especially
with respect to the responsibilities of the trustees regarding
The function of the Trustees shall be to manage the Funds according to these Rules. calculation of contributions...
The Trustees shall not be responsible for the correct calculation and payment by the
employers to the Trustees of the amount of its own contribution or the contribution of
the members who are its employees nor shall the Trustees be bound at the request of a
member or otherwise to take any proceeding against the Employer on such members
account.
8.3. EXPENSES OF MANAGEMENT
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All the expenses including auditor’s fee, costs of professional as well as clerical staff, account
books and stationery and all other costs, charges and expenses to which the Trustees shall put in
connection with the Fund for any reason whatsoever, shall be borne by the Company.
8.4. SECRETSRY
The Trustees may from time to time appoint one of the Trustees to be the Secretary of the
Fund who may sign all correspondence on behalf of the Fund and exercise such Powers and
authorities as may be conferred on him by the Trustees.
8.5. CHAIRMAN AND PROCEEDING OF MEETING OF TRUSTEE.
a) The Chairman of the Trust shall be appointed as per the provisions of the Trust Deed. In
his absence, the Trustee present the meeting shall elect one of themselves to preside the
meeting, Questions arising at a meeting of the Trustees shall be decided by a majority of
the votes and in case of an equally of votes the chairman of the meeting shall have a
casting vote. Two of the Trustees shall be a quorum.
b) The Trustees may from time to time by resolution under their signature authorized any
two of them to or endorse for transfer, conversion or payment any securities held by the
fund and may by resolution authorize the Secretary to sign receipts.
8.6. INVESTMENT
a) The moneys of the Fund shall be deposited in a special account to be opened by the
Board for the purpose in a scheduled bank; and invested in the name of the Fund, as the
Trustees may select, in accordance with the provisions of the Companies Act, 2017 and
the Income Tax Rules 2002. The Trustees shall have power to dispose-off the
investments and to reinvest the sale proceeds and profit income, if any, in such other
securities as are authorized by the Companies Act, 2017 and the Income Tax Rules, 2002.
b) however that the Securities in which the contributions made by the Employees and
Employers and the interest on the accumulated balances of such contribution invested are
payable both in respect of Capital and of interest, with power to the Trustees in their
discretion from time to time vary or transpose such investment in to or for other of a like
nature.
c) Provided always that if any investment be sold or otherwise realized by the Trustees or
redeemed any differences between the price received by the Trustees upon such sale,
realization or redemption and the cost price of such investment shall credited or debited
as the case may be to General Reserve Fund
d) All investment of the Fund and the banking accounts of the Fund shall be in the name of
the Fund.
8.7. YIELD ON INVESTMENT
a) Yield on investment at a rate per annum determined by the Trustees whose decision in
the matter shall be final after consideration of the actual yield of investments and the
market values of investments and redemption period of investments and all other factors
what so ever earned by the Fund and all debits or credits previously made to the general
reserve fund Will be credited yearly on the last day of the financial year of the
Organization. All such interest as aforesaid shall be credited to the account of each
member on a pro rata basis in the books of the Fund as on the 30th June each year.
b) Interest / profit shall be credited with effect from the last day in each quarter in the
following manner namely:-
(i) On the amount at the credit of Member on the last day of each quarter less any sums
withdrawn during the current quarter.
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(ii) The total amount of interest / profit shall be rounded to the nearest whole rupee,
fifty paisa counting as the next higher rupee.
c) Provided that when the amount standing at the credit of a Member has become payable,
interest shall thereupon be credited under this sub-regulation in respect only of the period
from the beginning of current quarter or from the date of deposits, as the case may be, up
to the date on which the amount standing at the credit of the Member become payable.
d) Interest / profit shall not be credited to the account of a Muslim Member if he informs Commented [3]: Revisit this clause because employee
need to give a written undertaking on a stamp paper regarding
the Manager Accounts that he does not wish to receive it but if he subsequently asks for his sect... Like fiqa hanfiya or else...
interest / profit, it shall be credited with effect from the first day of the year in which he
asks for it.
e) If a member dies or becomes entitled to payment of his own and /or the Company
contribution before the accounts of the Organization for the year are made up interest
payable on the members and /or the Organization contribution for such period as has
not been included in the previous year’s accounts shall be calculated at the rate fixed for
the last preceding year
8.8. RECEIPT Commented [4]: Kindly explain the word property... Like a
provident fund is not allowed to make investment in real estate
The receipts of the Trustees for the purchase moneys of any property held by the Fund and sold or immoveable property, except listed securities or mutual
by the Trustees or other effect shall be good and sufficient discharge to the persons paying or funds...
delivering such moneys or effects which in or by such receipts shall have expressed to be or to
have been received and the persons paying or delivering such moneys or effects and taking such
receipts as aforesaid shall not be obliged or required to see to the application of the said moneys
or effects or be answerable or accountable for the misapplication or no application thereof.
9. CONTRIBUTION
9.1. Contribution of each member shall be by way of deduction from salary at the time of payment
at Five percent (5%) of his salary for the time being consisting of basic salary and dearness
allowance (Exclusive of any overtime, special allowance ,bonus ,commission or other temporary
or fluctuating addition in his fixed salary). The Company shall be entitled to deduct it as from
the date of admission of each Member of the Fund before the payment of the salary.
9.2. The Company shall contribute to the fund on monthly basis consistent with the provisions of
the Income Tax Law pertaining to a Recognize Provident fund.
9.3. The Proportion of such contribution by the Organization as above attributable to each or any
member as the case may be shall be credited to his account with the Fund.
9.4. In the event of any member not being eligible for the Company contribution under the Rules, Commented [5]: Kindly explain the word not being eligible..
because there are certain specific circumstances or authority
the Organization shall be entitled to recover from the Fund its contribution and interest accrued need to be mentioned in which the person become ineligible...
thereon in respect of such member. The Company shall also be entitled to recover from the like if he is found guilty of any fraud or any other such activity
that the company considers against its code of corporate
fund claim of the Organization and such payment shall be a good and valid discharge to the governance and hence render him/her ineligible...
Trustees against all claims whatsoever in respect of the said Member. The organization will
however be entitled to recover its dues only up to the amount of its own contribution and
interest earned thereon.
10. ACCOUNTS
10.1. The accounts of the Fund shall be maintained by the Trustees in such form and for such period
and shall contain such particulars as preferably prescribed by the Federal Board of Revenue
from time to time.
10.2. The amounts of the Fund shall be made up yearly as at the end of each financial year.
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10.3. An account shall be kept for each Member showing separately the amount of his personal
contribution with Profit thereon as it accrues and the contribution of the Company with Profit
as it accrues thereon.
10.4. A statement of accounts of each Member shall be made as at the end of each financial year, and
furnished to each Member on demand within 7days.
11. AUDIT OF ACCOUNTS

The Trustees, with the consent of the CEO shall appoint Auditors who shall have access to all books, papers,
voucher’s, accounts and documents connected with the Trust and who shall in writing report to the
Trustees on the annual Balance Sheet and Revenue Account and shall verify the correctness thereof. Commented [6]: Fund do not have such accounts...
Balance sheet shall be replaced with statement of net assets
available for benefits... And revenues account as... Statement
of changes in net assets available for benefits...or as Income
12. BANK ACCOUNT and expenditure account for the year
The Board shall authorize the Trustees to open an account or accounts in the name of the Fund with any
scheduled bank or banks for the deposit of moneys belonging to the Fund and to operate the account
or accounts in the manner they deem fit.
13. NOTICES
For the purpose of these Rules, a notice to a Member may be given by exhibiting the same in a conspicuous
place in the Registered Office of the Company at Head Office. A notice to the Trustees may be given
by sending it by name through the post or by delivering the same by hand to the Chairman of the
Trust or to the Secretary of the Trust.
14. ALTERATION OF RULES

14.1. Subject to the approval of the commissioner of Income Tax the Trustees may with the consent
of the company modify substitute or abrogate any of the rules made here under and such
alterations shall have the same validity as if they had been originally contained in these presents
and shall be subject, in the like manner, to be altered, modified or cancelled.
14.2. Provided that no such variation, modification, cancellation, addition of new Rules shall be
retrospective so as to affect the title of any Member to the Fund or any part assented to by a
majority of the Members present at a General Meeting of the Members to be convened by the
Trustees for the purpose of ascertaining whether such assent is to be granted.
15. ARBITRATION
15.1. Any dispute or difference which may arise between any Member or his nominees or legal
representative and the Trustees, or between any Member or his nominees or legal representative
and the Company, or between the Company or the nominee or legal representative and the
Trustees as to the meaning or effect of these Rules or to any matter relating to or arising out of
the same, shall be referred to arbitration at Islamabad under the provisions of the Arbitration
Act, 1940 or any statutory modification or reenactment thereof for the time being in force.
15.2. Nothing herein contained shall be deemed to limit or effect any discretion vested in the Trustees
under any of the Rules or any of decision of the Trustees or the Organization which by any of
these Rules is provided to be final on any particular matters or any decision of the Trustees or
the Organization on any matter left to the discretion of the Trustees or the Organization by any
of the Rules.
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16. PAYMENT
16.1. It shall be the duty of the Organization to furnish the Trustees on request with all necessary
particulars to enable the Trustees to decide what amount is payable out of the Fund at any time
under these Rules.
16.2. The Trustees shall in all cases be allowed a reasonable period not exceeding one month from the
date when any payment becomes due and payable to a member or by the death of a member to
his nominee or representative as the case be and where payment is not made within the
aforesaid period, the Trustees shall allow interest on accumulated balance standing to the credit
of the members on the day he shall cease to be a member. Such interest shall run from the
expiry of one month to the date of payment, and shall be credited to the account of the member
at the rate of the interest credit of the Fund immediately preceding the year in which such
payment is made.
16.3. The accumulated balance due to a Member shall be payable to him or to the person or persons
nominated by him when he ceases to be a Member and the payment shall be made as soon as
the accumulated balance due can reasonably be determined.
16.4. Payment will be made only upon claim by the Member or other person entitled to payment and
shall include Profit earned on his accumulated balance for the relevant period till the time of
repayment due to any reason like retirement, death etc.
16.5. Any amount, if payable by the Member on account of income tax under Rule 5 of Part I of the
VI-Schedule to the Income Tax Ordinance of 2002 shall be deducted from the accumulated
balance due at the time of final payment to him. Income tax so deducted shall be paid by the
Trustees to the proper authority without delay. The Company shall indemnify the Fund and the
Trustees in the event of its or their suffering any loss by reason of incidence of such tax.
16.6. If payment is not claimed within three years from the date such payment is due, the accumulated
balance due to the Member shall lapse absolutely to the Fund and will be credited to the General
Reserve Fund.
16.7. The amount payable at the time of final payment will be ascertained and determined by a
certificate signed by two of the Trustees and payment of such amount so certified to the
Member or other person entitled hereto under these Rules shall operate as a full and sufficient
discharge of all liabilities of the Fund and of the Trustees in respect thereof.
16.8. Whenever any final settlement with the Member or his nominee(s) representative(s) is to be
made, if on making such settlement, the Trustees are of the opinion that by reason of any
appreciation or depreciation of the investment of the Fund or Profit or Loss arising from the
sale of any such investment since the last accounting date does not represent the true amount of
appreciation, depreciation, profit or loss which ought to be added or deducted in ascertaining
the date of such settlement, the Trustees may be way of addition or deduction make such
adjustments in the individual account of such Member as they shall in their sole discretion deem
fit and their decision in this respect shall be final and binding on all parties.
17. GENERAL RESERVE FUND ACCOUNT

17.1. All lapses and forfeitures occurring at any time and all donations and such other moneys as are
properly credited to the Fund shall be transferred to a separate account to be called “General
Reserve Fund”. This General Reserve Fund shall be used and applied by Trustees, for:
a) Meeting such expenses of administering the Fund as the Trustees in their discretion may
decide.
b) Writing off capital losses which may arise in realization of investment made by the Trustees.
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c) The purpose of rendering any form of assistance of living Members or their immediate
families which the Trustees deem justified in their sole discretion.
d) For the benefit of the Members or retired Member(s) or dependents or deceased or insane
Members or any such person collective or for such purpose connected with the Fund in such
manner as the Trustees shall in their absolute discretion think fit.
e) The Trustees in their absolute discretion from time to time make such payments as they
deem fit from the General Reserve Fund to the Revenue Account.
17.2. The Trustees shall, when directed so to by the Company pay or apply any part of the moneys
and investments standing to the credit of the General Reserve Fund Account in or towards any
scheme or object for the benefit of members or ex-members of the Fund.
18. WITHDRAWALS
Withdrawal by Member(s) shall not ordinarily allowed by the Trustees but may be permitted in their absolute
discretion on the special grounds in addition to the circumstances and terms and conditions set out in
“Appendix A” hereto.
19. WINDING UP
19.1. The Trustees may at any time with the consent of the Organization and shall if so directed by
the Organization on giving six months’ notice in writing therein after called the “Winding up
Notice” to each member personally or by sending the same to his last known address or by
pasting the winding up notice in a prominent place at all branch offices of the Organization,
wind up the Funds and realize its assets and after deduction all the expense of realization and
any other sums that Trustees may by law or by the Trust Deed or these Rules be entitled to
deduct distribute the balance of the amount realized by payment to each member the same
proportion thereof that the total amount standing to the credit with the Fund as at the date of
the winding up notice bears to the total amount standing to the credit of all members of the
Fund and as from that date the Trust Deed and these Rules shall cease to have any effect for the
purpose of determining any right or title on exercising and power or discretion relating to the
winding up or the distribution of assets.
19.2. No person not already a member of the Fund shall be admitted as a subscriber to become a
member of the Fund after the date of winding up notice as aforesaid. Upon the service of such
winding up notice the Trustees shall duly inform the commissioner of Income Tax or other
competent authority for the time being having jurisdiction over the Fund of their intention to
winding up the Fund.
19.3. Prior to the final distribution of its assets, the Fund’s accounts shall be audited and the value of
distributable assets shall be certified by the Fund’s auditor.
20. DISTRIBUTION OF ASSETS ON CLOSING AND WINDING UP

20.1. The balance available for distribution to the Members on winding up the Fund will consist of
the sale proceeds of all the investments of the Fund and the proceeds of realization of its other
assets together with the balances then available after making provision for the payment of all
expenses in connection with the closing of the Fund and any other liabilities, shall be distributed
among the Members in proportion to the accumulated balances due to them respectively.
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20.2. If on the closing and winding up of the fund after payment of all the accumulated balance due
to all the members any surplus to credit of General Reserve Fund Account shall remain in the
hand of the Trustees, the Trustees shall pay to the Organization there out such amount as had
at any time been taken to the General Reserve Account from the Accounts of member or
members and were recoverable by the Company under the provision of the Income Tax law
and these Rules but which had not been recovered .Any surplus in either of such accounts
remaining in the hands of the Trustees after such payments as aforesaid shall be payable to the
members of the Fund at the date of its closing in proportion to the total amount standing to the
credit of each members account on such date. The Trust accounts shall thereafter be audited
and closed.
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Appendix A
Permitted withdrawals.-
(1) Subject to these rules, withdrawals by employees from accumulated balance may be allowed by the
Trustees in the following circumstances, namely:-
(a) to pay expenses in connection with the illness of a Member or a member of his family;
(b) to meet the expenditure on purchase of a motor cycle or scooter provided that authenticated
copies of documents substantiating such purchase are deposited with the Trustees of the fund;
(c) to pay the overseas passage by reason of health or education of a Member or a member of his
family;
(d) to pay expenses in connection with marriages, funerals or ceremonies, which, by the religion of
the Member, it is incumbent upon him to perform and in connection with which it is obligatory
that expenditure should be incurred;
(e) to pay expenses in connection with the performance of Haj by the Member;
(f) to meet the expenditure on building or purchasing a house or a site for a house, provided that the
documents substantiating the building or purchase of such house, or the purchase of such site,
are deposited with the Trustees of the fund;
(g) to meet the expenditure on repairs, renovation or extension of a residential house belonging to
the Member;
(h) to pay premiums on policies of insurance on the life of the Member or of his wife provided that
the policy is assigned to the Trustees of the fund or at their discretion deposited with them and
that the receipt granted by the insurance company for the premiums is from time to time handed
over to the Trustees for inspection by the Commissioner;
(i) to purchase shares of a public limited company for investment as per Income Tax Rules;
(j) in the case of a Member who has attained the age of fifty years on the date on which withdrawal
is permitted-
i) subject to sub-rule (2), to meet the expenditure on the purchase of a house or construction
of a house on land owned by him or a member of his family anywhere in Pakistan;
ii) subject to sub-rule (3), to meet expenditure on the purchase of agricultural land from
Government;
iii) to repay a loan taken from a financial institution, provided that the Member shall, within a
period of two weeks from the date of withdrawal produce satisfactory evidence before the
Trustees to show that the advance has been utilized for the purpose for which it was drawn
failing which the entire amount of withdrawal together with interest accrued thereon shall
forth with become repayable to the fund in a lump-sum; and
(2) The first installment of a withdrawal under clause (i) or sub-rule (j) of rule (1) shall be allowed to be
drawn only after an agreement has been executed between the Member and the Trustees of the fund
to the effect that the Member shall expend the full amount of the said advance towards the purchase
or the building of a houses as claimed at the earliest possible opportunity and if the actual amount so
expended is less than the amount of permitted withdrawal the Member shall repay the difference into
the fund forthwith and further that if the said house is sold or otherwise alienated by its owner to any
other person while the Member is still in service, the Member shall forthwith repay into the fund the
entire amount of the withdrawal together with interest accrued thereon in lump-sum.
(3) The first installment of a withdrawal under clause (ii) of sub-rule (j) of rule (1) shall be allowed to be
drawn only after an agreement has been executed between the Member and the Trustees of the fund
to the effect that the Member shall expend the full amount of the said advance towards the purchase
of the said piece of land at the earliest possible opportunity and if the actual amount so expended is
less than the amount of permitted withdrawal the Member shall repay the difference into the fund
forthwith and further that if the said house is sold or otherwise alienated by its owner to any other
person while the Member is still in service, the Member shall forthwith repay into the fund the entire
amount of the withdrawal together with interest accrued thereon in lump-sum.
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Limits on Withdrawals.-
(1) (1) Withdrawals permitted under these rules shall not exceed the following limits, namely:-
a) in the case of withdrawals permitted under clauses (a), (b), (c) or (d) of rule (1), six months‟
salary of the Member or the total of accumulated balance to his credit, whichever is the less;
b) in the case of withdrawals permitted under clause (e) of rule (1) of, six months’ salary of the
Member or twenty five thousand rupees or of the total of the accumulated balance to his credit,
whichever is the lowest;
c) in the case of withdrawals permitted under clause (f) or (g) of rule (1), thirty-six month’s salary of
the Member or the total of the accumulated balance to his credit, whichever is the less;
d) in the case of withdrawals permitted under clause (h) of rule (1), eighteen months salary of the
Member or the total of the accumulated balance to his credit, whichever is the less, provided that
this restriction shall apply to each withdrawal and not to the total withdrawal;
e) in the case of withdrawals permitted under clause (i) of rule (1), six months’ salary of the Member
or ten thousand rupees or the total of the accumulated balance to his credit, whichever is the
lowest;
f) in the case of withdrawals permitted under clauses (i), (ii) and (iii) of sub-rule (j) of rule (1),
twenty-four months’ salary of the Member or eighty percent of the total of the accumulated
balance to his credit, whichever is the less;
g) in the case of withdrawals permitted under sub-clause (iv) of sub-rule (j) of rule (1), sixty percent
of the total of the accumulated balance to credit of the Member; and
h) in the case of withdrawals permitted under clause (k) of rule (1), ninety percent of the
accumulated balance to the Member.
(2) For the purpose of rule and this rule:-
a) "accumulated balance" means the total of the accumulations of exempted contributions and
exempted interest contained in the balance to the credit of the employee at the time of
withdrawals;
b) "family" means the employee's wife, legitimate children, step children, parents, sisters and
brothers who reside with the employee and are wholly dependent on him.
Second withdrawals.-
(1) Save as provided in rules (2), (3), (4) and (5), no second withdrawal from a recognized provident fund
shall be permitted until the sum first withdrawn has been fully repaid.
(2) Subsequent withdrawals for the purposes specified in sub-rule (h) of rule (1) may be permitted,
notwithstanding that the sum or sums previously drawn for the same purpose has or have not been
repaid.
(3) A withdrawal for anyone of the purposes specified in rule (1) other than that specified in sub-rule (a)
of that rule may be permitted notwithstanding that the sum or sums withdrawn for the purposes of
sub-rule (e) of rule (1) has or have not been repaid.
(4) A withdrawal for any of the purposes specified in rule (1) other than those specified in sub-rules (f)
and (h) of that rule may be permitted notwithstanding that the sum previously withdrawn for the
purposes of sub-rule (d) of rule (1) has not been repaid.
Repayment of amounts withdrawn.-

(1) Where any withdrawal is allowed for a purpose specified in sub-rules (f), (h), (i), (j) or (k) of rule (1),
the amount withdrawn need not be repaid.
(2) Subject to rules (3) and (4), where a withdrawal is allowed for a purpose other than those referred to in
rule (1), the amount withdrawn shall be repaid in accordance with the agreement between the
Member and the Trustees but not more than forty- eight equal monthly installments.
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NETKOM TECHNOLOGIES (PRIVATE) LIMITED

EMPLOYEES PROVIDENT FUND RULES

EMPLOYEES PROVIDENT FUND RULES

14. Error! Bookmark not defined.

15. Error! Bookmark not defined.

REPAYMENT OF AMOUNTS WITHDRAWN.- 10

7. ASSIGNMENTS NOT TO BE RECOGNIZED

8. CONTROL AND MANAGEMENT OF FUND

11. AUDIT OF ACCOUNTS

14. ALTERATION OF RULES

17. GENERAL RESERVE FUND ACCOUNT

20. DISTRIBUTION OF ASSETS ON CLOSING AND WINDING UP

Repayment of amounts withdrawn.-

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