Thal Engineering

Division of Thal Limited

EMPLOYEE HAND BOOK

&
SERVICE RULES
 TABLE OF CONTENTS

SR. Page
SECTION
No. No.
1 WELCOME 1
2 ABOUT THAL ENGINEERING 1
3 GUIDING PRINCIPLES 1
4 TEAM MEMBERS CONDUCT 2
5 VISION 2
6 MISSION 2
7 COMPANY’S VALUES 2
8 QUALITY, SAFETY AND CLEANLINESS 3
9 IDEAS / INNOVATION 5
10 ORIENTATION 5
11 TRAINING & DEVELOPMENT 6
12 EMPLOYEE PERFORMANCE APPRAISAL 6
13 SALARY REVISION / INCREMENT 6
14 COMMUNICATION 6
15 SERVICE TO COMMUNITY 7
16 EMPLOYMENT TERMS

 APPOINTMENTS
I. DOCUMENTATION
II. REFERENCES
III. TA / DA
IV. PROBATIONARY PERIOD
V. NOTICE PERIOD 8
VI. INTIMATION OF CHANGE OF ADDRESS
VII. COMPLIANCE OF COMPANY’S RULES &
REGULATIONS
VIII. RETIREMENT AGE
IX. DESIGNATION
 TABLE OF CONTENTS
WELCOME
SR. Page We warmly welcome you as a fellow team member on the team and look forward to spending
SECTION
No. No. happy days together, working towards the attainment of Company’s vision, mission and objective.
17 WORKING HOURS 9
We hope you will find the working environment friendly with opportunities for self development
18 IDENTIFICATION CARD 10 and growth. We look forward towards your contributions in ameliorating everything around us.
19 KEYS 10
20 GATE PASS 10
21 LOCKERS / DESK 10 ABOUT THAL ENGINEERING
22 PROVIDENT FUND 11 Thal Engineering is a division of Thal Limited, a company of House of Habib. Thal Limited was
23 LEAVES incorporated in 1966 as a public listed company. The Engineering Division began its operation in
1996 starting with auto air conditioners and has subsequently added wiring harness, heater blower
 PREVILEGE LEAVE 11-13 & AC controls to its product line.
 CASUAL LEAVE
 SICK LEAVE Thal Engineering is the largest automotive parts manufacturer in Pakistan and is a major supplier of
 MATERNITY LEAVE parts to the top automobile companies in Pakistan.
24 LOCAL CONVEYANCE 13 Thal Engineering has technical collaboration with Japanese world Leaders viz Denso Corporation
25 TRAVELLING RULES 13 for car air conditioners and heater/blowers and Furukawa Electric for wiring harness. It is already
26 RETIRING GRATUITY 14 certified under ISO 9001-2000, ISO 14001 and TS 16949 and is now striving to achieve the quality
standard of Six Sigma; which very few companies in the world have achieved.
27 GROUP LIFE INSURANCE 15
28 MEDICAL & HOSPITALIZATION INSURANCE 15 The company has adopted modern management practices and its management toolkit has some
SCHEME traditional and some innovative elements. There is a great emphasis on work values which form the
corner stone of the Management's plan to create an enduring company.
29 EMPLOYEE OLD AGE BENEFIT 15
30 CAR POLICY 16-18 Thal Engineering has a Management Committee comprising of Department Heads and CE and a
31 MOTORCYCLE SCHEME 19-20 Group Committee with Company Chairman as its head.
32 COMPUTER SCHEME 21
It has been our endeavor to keep the organization simple and flat. The designations are merely to
33 BOOKS & MAGAZINES 22 identify the main tasks of the Team Members, hierarchy is to be minimum and the responsibility of
34 MARRIAGE GIFT 22 the task is solely with the doer.
35 RECREATIONAL & SPORTS ACTIVITIES 22
36 DINING FACILITIES 22

GUIDING PRINCIPLES
 3. WE, NOT I
1 A superior effort in knowing customers needs and satisfying them; a superior effort at Wining is a teamwork, together we become bigger than each, be a friend, be humble.
anything and everything that we do. Communicate for results.

2 Fulfill obligations to Community, Country and Earth. 4. ACT NOW

Speed thrills & gives competitive edge. Prioritize for effectiveness, focus on customer needs,
3 Regard all people as equal in dignity and respect. and practice THALOCITY.

4 I am nothing without WE. 5. LISTEN

Listen with all sense, be accessible, be receptive. Listening is learning & knowledge.
5 Our customer, our product, our reputation are very dear to me.
6. RESULTS
6 Think Big, keep it simple and small. Benchmarking your performance. Results are imports, not reasons. “Deliver” & excite your
customer.
7 Profit is the reward for observing the above principles.
7. ENJOY WORK
Make work fun, exude a different aroma, a positive change.
TEAM MEMBER’S CONDUCT 8. ENTREPRENEUR
The job has got to be done, perseverance brings success, shun bureaucracy, take decisions..
All team members are expected to conduct themselves in a manner becoming and befitting of
responsible members of the company and society. Use your common sense and best judgment; we
9. DRIVE COST DOWN
trust you.
Drive cost down for competitiveness, add customer value not cost.

VISION 10. INNOVATIVE

Embrace changes, pursue knowledge, buck conventional wisdom, change is mandatory.
Recognized as the most respected and dynamic group with expanding and diversifying businesses,
sustaining competitive returns to shareholders. 11. BE # 1 IN QUALITY, SERVICE AND 5S
Be passionate for being # 1 in quality, Service & 5S, create “WOW” in service & “WAH” at
An employer of choice, responsibly fulfilling obligations to community, country and environment. work.

MISSION 12. FULFILL OBLIGATIONS

Fulfill obligations to Community, Country & Mother Earth.
Recognized internationally as a world class manufacturer of engineering products with high entry
barriers. Making superior efforts to provide tailored solutions to our customers, ensuring QUALITY SAFETY AND CLEANLINESS
stakeholders’ interest and being a good corporate citizen.
It is the intention of the Company to provide everyone a safe, clean and pleasant work environment.
COMPANY VALUES It is one of the main values the Company wants to foster.

Only by working together we can maintain a safe, neat, clean, orderly and healthy environment, of
1. BISMILLAH
which we can all proud of.
Begin everything with Bismillah, you get connected.

2. RESPECT
Respect everyone, all living creatures & things; it increases their life & contributions.
It is only in such an environment that quality can take root, grow and flourish, as being # 1
in quality is a value that the Company cherishes, ensuring quality is a prerequisite to
15. Handle all explosive, inflammable material with care.
producing. Do not compromise. Strictly follow quality instructions.
16. When riding a motorcycle, use a safety helmet. When driving a car, use seat belts.
Produce QUALITY or do not produce at all.
17. Do not run on stairs, climb steadily.
GUIDELINES 18. Use a suitable step ladder or stool to reach up. Boxes, chairs etc should not be used.

1. Keep work areas, machine and desks neat and clean. 19. Understand use of fire fighting equipments and take part in fire fighting practices. Be
fully conversant with evacuation procedures.
2. Do not spit. It is a bad habit and against our code of conduct.
20. Lift heavy articles by bending the knees to reduce stress on the back. Use a lifter if
3. Do not throw anything on the floor. Use waste baskets, dustbins, drums etc. necessary.

4. Nothing should be left in the passages, stairs or gangways, everything should be 21. Keep your tools clean and rust free.
at designated places.
22. Check the inspection gauges daily before commencing the work. Also check expiry of
5. When leaving office, all files should be kept in filing cabinets, and not left on calibration date.
table top.
23. Clean your equipment daily before leaving work place.
6. Close filing cabinets immediately after use.
24. Inspect production as per agreed frequency and use control charts.
7. Avoid smoking in closed areas and wherever marked.
25. Take pride in your work and work place and suggest ways to improve it.
8. Use safety equipment whenever advised, marked or needed. If something is not
available ask for it.

9. Understand the machinery / equipment fully before using it. When using, follow IDEAS / INNOVATION
the instructions / process faithfully.
If you have any idea which can improve the product, services, systems etc. please speak or
10. The operating, maintenance and safety instructions must be displayed on each write to your head of department or the Chief Executive. If your idea is adopted the Company
machine. will give you due recognition as it welcomes participation from everyone.

11. Study and understand First Aid instructions and familiarize with whereabouts of If you have not had a new idea for sometime, ask yourself why and prompt your thinking by
First Aid supplies. reading, meeting new people, discussing with others etc.

12. Never wear loose clothing. Always wear uniform. Innovators are considered Heroes here.

13. Floors should be clean and dry at all times as wet floor poses a safety hazard. ORIENTATION
14. Clean or arrange to clean oil/ grease, if found on floor, as it can cause injury The newly inducted team member in Thal Engineering is taken through a process of
and / or fire. Orientation in his/ her first week to familiarize him/ her with the Company environment.

During orientation the team member is also introduced to Thal Values/ Culture.
 TRAINING & DEVELOPMENT 1. If you have a problem with any person, hold a one-to-one talk and open your heart.

2. If you have an idea, for improvement, discuss with your superior and send it in writing
The Company recognizes the value of developing the potential of each team member in
to HOD.
order to build up an efficient and valuable team.
3. If you have an interesting anecdote / joke share it with colleagues. Start the day with a
Regular review of training needs will be carried out particularly during performance
joke.
appraisal. If you feel a specific need, please discuss with your superior.
4. If you have an interesting article put it up on Information Board.
Company earmark annual budget to meet the training needs.
5. If you would like to give a talk on any subject, send your request to HR department who
The individuals must however make every effort to develop themselves and use initiative,
will try to arrange it after holding discussion with you.
without which, efforts by the company will not lead to fruition.
6. Be a good listener, listen with all your senses, not ears alone. Keep a open mind. Ask
To develop themselves, it is imperative that the individuals keep themselves abreast with
yourself why not try it?
what is happening around them, in as many fields as possible, by meeting people with
diversified backgrounds and reading magazines, books and articles as much as possible.
7. When speaking or writing, be systematic, logical and precise. One page is better than
Without it, growth and development is not possible. We have also in-house library facility
many, even if the page is long.
where one can borrow books and magazines.
8. You are free to use internet for useful communication within the company.
To promote reading habit the Company reimburses purchases of books up to a certain
amount for Grade R-8 and below.
9. All departing employees will be required to have an Exit Interview at HR department in
order to receive feedback and comments.
EMPLOYEE PERFORMANCE APPRAISAL
The performance of each employee is appraised annually. This is intended as a mean of
measuring and enhancing individual’s performance and in turn organization’s performance,
SERVICE TO COMMUNITY
fostering professional development, career growth as well determining merit increase.
Thal Engineering is a committed, socially responsible corporate citizen, taking initiative and
supporting actions in the field of education, welfare, environment, wild life and well being of
SALARY REVISION / INCREMENT all personnel associated with us.

Based on individual performance, annual increment is granted to every employee who has We are a member of World Life Fund and continue to serve in whatever way we can. The
satisfactorily completed his/ her probationary period. Company has registered with Global Compact, companies from Pakistan and from all over the
world have joined in this Compact, initiated by the United Nations, which seeks commitments
COMMUNICATION to ten principles devolved around human rights, labor, environment and anti-corruptions.

We treat all human being who come in contact with us due respect and dignity and fulfill our
Easy and unhindered flow of information is necessary to be effective, both individually and
obligations toward them and society diligently.
as team. Communicate often and in a way that the listener receives it well. To improve
communication the company suggests that:
We encourage you to do community social work in your spare time.
 EMPLOYMENT TERMS The Company shall have the absolute discretion to transfer any team member from one
Department to another or from one place to another or anywhere in Pakistan within the
Company.
APPOINTMENTS:
The vacancies will be filled purely on merit.
7. INTIMATION OF CHANGE OF ADDRESS
Any change in team member’s address, as declared in ‘Interview Data Sheet’ shall be
1. The successful candidates, on joining the Company, shall submit the following immediately notified by team member. Any communication sent by the Company, at team
documents: member’s last given residential address, received back un-served, shall be deemed to have been
served to him/her.
1. Photocopies of Educational Certificates
2. Photocopies of experience certificate(s)
8. COMPLIANCE OF COMPANY’S RULES & REGULATIONS
3. Photocopy of the National Identity Card
All team members shall be governed under the Rules & Regulations of the Company, applicable
4. Photographs (2 Nos)
from time to time.
5. Certificate of last pay/emoluments drawn
6. Photocopies of training / workshop courses
9. RETIREMENT AGE
Team members will retire on reaching the retirement age given under, unless extended by the
2. References
Company, applicable from time to time.
Verification letters would be sent to the previous Employers and two references given by the
applicant in his or her interview Data Sheet..
Non-executive grades 55 years
Executive grades R-12to R-10 55 years
3. No TA/DA shall normally be admissible for interview or for joining the company. Executive grades R-9 to R-3 60 years

4. PROBATIONARY PERIOD 10. DESIGNATION

At the time of appointment the team member will be on a probationary period for three The Designation is intended to describe the nature and responsibility connected with the job in a
months in case of non-executive cadre and six months in case of executive cadre. During general manner. The Management, however, may assign or change a designation at its
this period the Company may terminate his/her services without assigning any reason or discretion. Grades are not fixed to specific designations and the placements in same designations
notice and likewise he/she may leave the Company’s service without notice. may be in differing grades.

The team member will be confirmed subject to his/her satisfactory performance during
probationary period by issuing a confirmation letter. However, the Company shall have the WORKING HOURS
discretion to extend or shorten the probationary period keeping in view the team member’s
performance. Days Working Hours
Monday to Saturday except Thursday & Friday 08:30 – 17:00
5. NOTICE PERIOD
After confirmation of services of the team member, if team member leave the Company’s Thursday & Friday 08:30 – 17:30
services, team member will be required to submit one month’s notice (for Grade R-7 and
below) or three month’s notice (for Grade R-6 and above) in writing or to pay one month’s
salary (for Grade R-7 and below) or three month’s salary (for Grade R-6 and above) in lieu Days Lunch Tea Break
of such a notice. Likewise the company will give one month’s notice or one month’s salary
Monday to Saturday except Friday 13:00 – 13:40 08:30 – 17:00
in lieu of such notice (for Grade R-07 and below) or three month’s notice or three month’s
08:30 – 17:30
pay in lieu of such notice (for Grade R-6 and above), in case the company terminates service
of a team member for reasons other than involving serious disciplinary offenses.
Friday 13:00 – 14:45 09:30 – 09:50
14:45 – 15:00

6. TRANSFER
Sunday is a rest day.
 First and third Saturday of every month are observed as closed holidays
Ramzan hours are announced annually. 1. All permanent team members are entitled to become member of Provident Fund
Scheme. The details of which are available separately.
You are strongly encouraged to arrive early at your workplace to ensure you are ready to start
work on time. Similarly do not leave work before the closing time. 2. Each member will contribute 8.33% of his / her basic pay monthly, towards the Fund
and the Company will contribute an equal amount to it.
When taking lunch/prayer break it is important not to litter and be ready to start work promptly
at the end of the break period. 3. The Fund money will be invested by the trustees, which in their view will yield
maximum benefit to the members as per law and rules of the approved and recognized
The Company reserves the right to change the timings, rest days and holidays at its discretion Provident Fund.
after having properly notified you of the change.
LEAVES
IDENTIFICATION CARD
1. Any type of leave allowed to tem members, should not be treated as matter of right. It is
For security purpose, all employees are issued identification card. Guests, including vendors/ privilege and will be granted at the convenience of the Company.
contractors entering the premises should obtain a Visitor’s Pass of their respective category
from the security office at the main gate. Same should be displayed on person throughout the 2. A team member on leave shall not accept any employment during the period of leave
stay in the premises of the factory. without the prior consent of the Company in writing.

KEYS 3. A team member proceeding on leave will be bound to intimate his/her address at which
communications sent by Company should reach him/her otherwise communications
shall be sent at least known address and deemed to have been served.
All team members should provide a duplicate key of their locker and desk to Administration
department in a sealed envelop. Only in case of absence of the team member if an urgent need
4. Sundays or other holidays falling during leave or between 2 leaves will be counted as
arising, the keys will be used and the team member will be informed on return. HOD’s to give
leave days.
their keys to Chief Executive.

GATE PASS PRIVILEGE LEAVE

Any team member while taking any item outside the Company premises is required to produce 1. All team members shall be entitled to privilege leave of 21 days for every completed 12
a Gate Pass signed by HOD / Administration Department to the security at the main gate. months continuous service.
Similarly, team member bringing any item inside the company mist inform to security at the
main gate. 2. Period spent on probation will also be taken into accounts when considering 12 Months
under (1) above.
LOCKERS / DESK
3. When parting with the Company, Privilege Leave will be calculated proportionate to the
Lockers are provided to some team members for personal use. The Company is not responsible period of actual service during the year.
for any item lost, damaged or stolen from it. It is strongly advised not to keep any flammable,
toxic or any other dangerous item in the locker, which if found, will attract disciplinary action. 4. All team members are expected to avail at least 10 days privilege leave every year. A
leave Roster will be prepared in advance of the Financial year. The team member will
Desks tops should be left clean when leaving work. Avoid keeping anything personal, or inform the concerned Department Head about his/her tentative leave plan for next year
valuable in the drawers. Lock the drawers only if confidential documents are kept in the so that a leave plan for all the team members in a department is prepared without
drawer. Put away files in the filing cabinet before leaving for the day. affecting the official work. However, in case of an emergency a team member on his
request may be granted privilege leave on dates other than the planned, provided it does
PROVIDENT FUND
 not affect the official work. Similarly, in case of exigency, the team members can 2. If probationary team members are allowed sick leave it shall be adjusted against
be declined leave / called back from the Privilege Leave. The leave so cancelled entitlement on confirmation. If not confirmed salary for the leave period will be adjusted
shall be allowed to accumulate within the maximum allowable limit. against dues at the time of parting.

5. A team member may accumulate privilege leave up to maximum of 90 days, no 3. Sick leave for more than 3 days will be sanctioned on submission of a medical
accumulation beyond this period is allowed for any reason. certificate from a Registered Medical Practitioner.

6. Privilege Leave shall be encashed at the gross salary drawn only at the time of 4. In case of sudden sickness and absence from work, the company should be informed on
separation from the Company. However, team members in Grade R-8 and below telephone as soon as possible about the sickness and of probable duration of sickness. If
are allowed to encash upto maximum of ten days of annual entitlement, if not the sickness prolongs it is expected of the team member to keep his superior informed.
availed at the beginning of every financial year.
5. Sick leave is accumulated indefinitely, to be used in case of long sickness on
7. Application for leave should be presented on the prescribed Application Form to the recommendation of a Registered Medical Practitioner.
Departmental Head at least 15 days before the commencement of leave. The
sanction or refusal of Privilege Leave will be advised to the applicant in writing. 6. Sick leave cannot be encashed at any time, by anyone, even at the time of parting.

8. If the team member, after proceeding on leave, desires and extension thereof, such MATERNITY LEAVE
request must reach the Company at least 7 days before the expiry of the original
leave. The company shall send reply at the given contact address granting or All the married female team members are eligible for 12 weeks Maternity Leave, 6 weeks
rejecting the request before the expiry of the original leave. pre-natal and 6 weeks post-natal.

CASUAL LEAVE LOCAL CONVEYANCE

1. A team member with more than six months service shall be entitled to casual leave
Any employee using his/ her car or motorcycle for business purpose can get the re-
of 10 days in each fiscal year.
imbursement as per company’s prevailing rates..
2. No casual leave is entitled during probation period and if allowed will be adjusted
when confirmed. If not confirmed, will be adjusted against dues when parting.
TRAVELLING RULES
3. Prior permission of the Company should be obtained before casual leave is taken. In
case if exigency or unforeseen circumstances, the Company should be informed All traveling local or foreign, will be done only with the prior permission of Departmental
telephonically and on resumption of duty a proper leave application be submitted Head/CE as the case may be. When traveling, within or outside the country, the team
for regularization. members are supposed to meet their expenses from the Daily Allowance. Any expenditure
incurred outside the scope of their entitlement will not be borne by the Company unless duly
4. Casual leave not availed of during the year will not be accumulated or encashed, authorized.
except by team members of the Grade R-11 and below who may encash the un-
availed leave at the end of the fiscal year. 1. In case a team member travels by his own transport, he will be reimbursed conveyance
expenses as per his entitlement.
SICK LEAVE 2. No team member will be entitled to Daily Allowance on tour of duty for a period
exceeding (30) consecutive days at one station after which period 20% of his total salary
1. A team member with more than six month service shall be to sick leave of 12 days will be paid to him as Disturbance Allowance till he/she joins his parent location.
in a fiscal year.
3. In case a team member is provided free Boarding and Lodging, he will be entitled
to 20% of the Daily Allowance, when traveling abroad and none within Pakistan. In
GROUP LIFE INSURANCE
case only free accommodation is provided, he will receive 40% of his entitled
All permanent team members will be covered against death and disability under the Group Life
allowance when traveling abroad and 12 day hour’s entitlement within Pakistan.
Insurance Scheme upto the amounts fixed by the Company from time to time Prevalent rates are
appealed are below:
4. All postage, telephone, fax, telex, taxi/rail, bus and entertainment expenses incurred
by the team member for official work during the period of traveling will be
R-4 Rs. 800,000
reimbursed the Company. Entertainment expenses incurred by team members of R-
12 to R-8 will be paid with prior permission only. R-5 Rs. 700,000
R-6 Rs. 550, 000
5. On conclusion of the tour, the team member is required to submit his traveling bill R-7 & R-8 Rs. 450,000
on the prescribed from within (7) days of return from journey. In case, the team R-9 Rs. 375,000
member fails to do so, any advance drawn by him against the traveling will be R-10 Rs. 350,000
deducted from his current month’s salary in one installment. R-11 & R-12 Rs. 300,000
Other Team Members/ Junior Team Rs. 200,000
6. A team member proceeding abroad on Company’s business will be insured to the Members
extent he is covered under the Group Insurance Scheme on Company’s account.

7. When traveling abroad the Daily Allowance will commence from the time the In event of death of a team member, the insurer will pay the amount to the nominated
person arrives at the place of destination and ends as soon as he/she boards the beneficiary or legal heirs of the employee in accordance with law, in case of absence of
carrier for the return journey. For any 12 hours period, beginning 9 am local time, nominated beneficiary.
which does not involve spending a night at a hotel, 40% of the allowance will be
paid.
MEDICAL FACILITY & HOSPITALIZATION INSURANCE SCHEME
8. In transit, during a journey, actual cost of meals boarding will be reimbursed.
1. First aid for any injury at work will be administered within factory.

2. Treatment for common ailment at work is available.

RETIRING GRATUITY
3. All team members covered under Social Security Scheme shall be registered with Social
1. All those team members who have completed ten years of continuous service with Security Institution and shall not be entitled for additional medical facility.
the Company and who retire having reached the age of superannuation i.e. 55 or 60
years as the case may be or who have to retire from the Company on medical 4. Executives are entitled to Health Insurance Scheme, which covers hospitalization
grounds acceptable to MC/GC, will be granted retiring gratuity @ 15 days of basic expenses, if incurred for self, wife, dependent children and dependent parents (if
salary for each completed year of service. applied)

2. No one leaving the Company otherwise is entitled to retiring gratuity.

3. This facility will be frozen and cease to exist whenever a pension scheme is
introduced.
EMPLOYEE OLD AGE BENEFITS
All eligible team members are covered under EOBI Scheme as per law.

CAR POLICY
 a) 5% of value as down payment.
b) 23% of the value, in 60 equal monthly installments.
c) 5% of the value on conclusion of 60 months (i.e. depreciated value less amounts paid
1. POLICY under (a) & (b) above).

In line with the market practice the Company provides buyout car scheme. However,
executives can choose between car scheme or car allowance. 5. Leavers

If an executive leaves the Company after 24 months, he may buy the vehicle at the median of
the depreciated value at the time (calculated on the monthly basis) and the market value if
2. ELIGIBILITY offered by the Company. In case he leaves the Company earlier than 24 months, or his service
Employees in management grades R-7 and above are entitled. is terminated, he may be offered the car at prevailing market price at Company’s discretion.

6. Retirees
3. PROCEDURE
If an executive retires from the Company before 60 months of using the vehicles or on
Those opting for Car Scheme will follow the procedure as given under Scheme-A and those medical grounds acceptable to CE, he will be entitled to purchase the vehicle at the
opting for Car Allowance under Scheme-B depreciated value at the time, calculated on monthly basis.

SCHEME-A (Equity based Car Scheme) 7. Promotions

An executive will buy car from the list of approved cards for his level. In case an executive is promoted to a grade in which he is eligible to a different vehicle other
than the one he has been availing as per Company’s Car Scheme, the employees has three
options to choose from:
Review & Revision of Car Value
a) To surrender the vehicle in his use to Company before the executive can be provided
The Car values and type will be reviewed and revised in July every year and the revised values with the different vehicle under the Car Scheme.
and type will be approved by the Group Committee. A vehicle other than specified, can only be
bought with approval of CE for cogent specified reasons. b) If the employee desires, he / she may complete the remaining period of the vehicle in his
use under the Car Scheme.

4. Terms and Conditions (Purchase & Payments) c) The executive can purchase the vehicle in his use at the median of prevailing market
price and the notional depreciated value.
1. The vehicle will be purchased and registered in the name of Company.

2. The executive shall have the option to purchase the vehicle at notional depreciated
value @ 20% per annum on declining balance. An agreement in writing between
the Company and the employees shall be executed to this effect.

3. The cost of transfer of vehicle to an individual will be borne by the executive.

4. The executive shall make payments as under: 8. Use of Company Car:

 The executive pays for all maintenance and insurance out of the monthly salary / allowance.

The car under the scheme shall be used both for business as well as personal use. The 13.
executive is permitted to allow any member of their immediate family or paid driver who is
suitably licensed, to drive the vehicle. The responsibility lies with the vehicle user to ensure The executive pays for all maintenance and insurance out of the monthly salary/ allowance.
that the family member or nominee is a fit and proper person to be in control of the vehicle.
(a) If the Company for any reason is not able to replace the vehicle to the team member after 60
months, it will provide an additional maintenance allowance to the executive as follows:
The Company would reserve its position to withdraw from any claims should the user fail in
this responsibility. (b) For Corollas, Rs.1,500 p.m. for first six months and Rs. 2,000 p.m. thereafter

Conditions for Immediate Family /Nominees driving Company Car (c) For 1000 CC Rs.1,250/- p.m. for first six months and Rs. 1,750 p.m. thereafter

(d) For 800/850 CC Rs. 1,000 p.m. for first six months and Rs. 1,500 p.m. thereafter
 Have a valid driver’s license.
 Are of sound mind and body and capable of driving the car in a legal and responsi - (e) The maintenance allowance will be paid by the entitlement of category of vehicle and not by the
ble manner. Engine Size of the Car an individual has chosen to use.
 Are not under the influence of alcohol, drugs or any other medication.
 The executive to whom a Company car is allocated will be responsible for the pay- (f) If the Company is not able to provide a car immediately on joining, and the team member uses his
own car, the above maintenance allowance will be paid to him.
ment of any traffic violation in respect of that vehicle.
 The above conditions are also applicable to the employee. (g) This scheme has been prepared to assist the team members, in view of the high cost of vehicles.
The vehicle is for their use. If it is surreptitiously passed on to anyone else it will amount to breach
0. Car Expenses of a trust and be the cause of sternest disciplinary action.

Registration, taxes and comprehensive insurance charges shall be by the Company. MOTORCYCLE POLICY
The executive will ensure that the vehicle is properly and regularly maintained.
Team members in Grade R-12 to R-8 who have completed one year of confirmed service will be entitled for a
Maintenance expenses will be as per limits determined for each salary grade. motorcycle under Company’s motorcycle policy.

10. SCHEME-B (Car Allowance Scheme) Terms and Condition (Purchase & Payments)

· The motorcycle will be purchased and registered in the name of the Company.
The amount of the allowance is calculated @ 67% of the cost of the Company of the
benchmark vehicle and 100% comprehensive insurance cost. The allowance is provided to the · Registration, Taxes and comprehensive insurance charges shall be borne by the Company.
executive on a monthly basis and the amount is fixed for a period of one year (July to June).
The value of the allowance may be reviewed and adjusted annually. · Depreciation shall be calculated monthly @ 20% per annum on reducing balance.

11. Taxation The team member shall have the option to purchase the vehicle at depreciated value after 60 months. An
agreement in writing between the Company and the team member shall be executed to this effect.
All executives who opt for Car Allowance are liable to pay income taxes themselves and the
Company will calculate and deduct this tax from the executive monthly pay.

12. Maintenance and Insurance: