Does this offer seem appropriate, calculation wise.
I find the PF calculation to be incorrect as it is not 12.5% of basic, also never heard about City compensatory allowance.
Please guide.

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It has not shown employers contribution to pf , add that also

That's a capped PF! Nothing wrong there... Check if you can increase it.. also city compensatory allowance is totally fine until unless there is a hidden clause that it will be removed if you move to another city.

He is right. That is the minimum PF. Ask for 12% of basic as PF aka higher PF.
In hand will become less but good for future

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