Dear SK,
CTC means COSTS TO COMPANY"
Normally all Corporates budget the cost of an employee, before engaging them, so that they are aware of the actual costs which they would incur upon an employee, when they would engage him.
This would include the employees pay package (Basic, HRA, Conveyance, Medical and other Allowances). In addition to this there would be additional costs upon the Company, such as Employers Provident Contribution, Gratuity Provision, Statutory Bonus Provision. These costs are the liability upon the Company, and hence shown in the entitlement sheet to the appointment letter. These costs would not be reflected in your salary slips, as these are Company costs.
Morever addition of these costs to the Entitlement Sheet also inflates the figures in the CTC, for which may employees do fall prey to.
Normally these costs are budgetted to each individual dpeartments which hire such employee, so that the costs verses department output (Productivity) can be analysed.