20-04-11

INDEX

S. No. Description Page No.

1 About LANCO 1

2 Lanco Mission, Vision and Values 2

3 Company Board of Directors 3

4 Key Executives 4

5 Core Team Members 5

6 Functional Heads at Corporate Office 7

7 HR Philosophy and Objectives 8

8 Cadres, Grades and Job Titles across the Group 9

9 Employee Leave Rules 10

10 Notified National Holidays / Festivals 11

11 Employees’ Insurance Coverage Benefits 12

12 Employees’ Provident Fund 15

13 Employees’ State Insurance 17

14 Reimbursement of LTA & Medical Expenses 17

15 Reimbursement of Fuel Expenses 19

16 Higher Education Reimbursement Program 20

17 Travel (Domestic & Foreign) 21

18 Company-Owned Vehicles to Employees 30

19 Employee Salary Advance 31

20 Mobile Phone Facility 32

21 Laptop & Data Card Facility 34

22 Training & Development 36

23 Performance Management System 39

24 Retention Bonus Scheme 43

25 Annual Performance Incentive 45

26 Innovation Awards 47

27 Payment of Gratuity 49

INDEX

Employee Hand Book

LANCO INFRATECH LIMITEDCorporate Office: Plot No 397 Udyog Vihar, Phase III

Gurgaon 122016 Haryana, India Tel : + 91-124 - 4741000 – 044

http://www.lancogroup.com

S. No. Description Page No.

28 Employee Referral scheme 49

29 Conduct, Discipline & Appeal Rules 50

30 Dress Code 60

31 Sexual Harassment at workplace 61

32 Whistle Blower Policy 65

33 Exit Policy 70

About LANCO

Welcome to the LANCO Family! Look forward to a continuous mutually meaningful and successful association.

Lanco is one of the fastest growing Integrated Infrastructure Enterprises of India, operating across a synergistic chain of Strategic Business Units (SBUs) comprising Power, EPC, Construction, Renewables, Resources, Non-Power Infrastructure, Property Development and CSR.

Lanco Infratech Ltd’s current market capitalisation is approximately Rs. 15,000 Crores (USD 3.33 billion). Out of the total Share Capital, the promoters’ holding is about 68 %. The gross revenue of Lanco as on March 2010 was over Rs. 8200 Crores (USD 1.8 billion).

Lanco is fast emerging as one of the top three private sector power developers in India with 2092 MW under operation, 7153 MW under construction, and 11070 MW of projects under development.

In a strategic move that provides increased fuel security for its current power generating assets and its future power portfolio expansions, Lanco through its step down Australian subsidiary, Lanco Resources Australia, has acquired Griffin Coal Mining Company and Carpenter Mine Management. Griffin coal, based out of Collie in Western Australia, owns the largest operational thermal coal mines in Western Australia, producing over 4 mtpa of coal which can be ramped up to over 15 mtpa in the near term, post development of evacuation infrastructure.

Lanco has strategic global partnerships with top-notch companies which include: Genting, Harbin, GE, Dongfang, Doosan etc. Today, Lanco is one of India’s largest Power Traders in the private sector.

A people driven organization, Lanco operates from 20 States in India and has international operations in Australia, China, Indonesia, Nepal, Singapore, United Kingdom and USA with a human resource base of about 6500 people. Lanco has an Order book of Rs 25,425 Crores as of September 2010. Lanco is also a privileged member to the World Economic Forum and it has been acknowledged as an elite member of the top two hundred “Global Growth Companies”.

As part of its business strategy, the company has chalked out an ambitious growth plan – Lanco’s Vision 2015: to build a High Performance Organisation with an operating capacity of 15000 MW in Power. Lanco also envisages aggressive growth plans for EPC with a strong Order book growth.

The year 2010 was celebrated as Lanco’s Silver Jubilee Year. It has been twenty five years since the founder chairman L Rajagopal, taking inspiration from his uncle Lagadapati Amrappa Naidu, began his career as an entrepreneur. Lanco continues to take its stride forward on the strength of their vision and inspiration and under the leadership of the current Chairman, L Madhusudhan Rao.

A preferred employer, Lanco Group builds on a tradition and culture where trust comes first… and the credo is inspiring growth.

For more details please visit our website www.lancogroup.com .

Page 1

Lanco Mission, Vision and Values

“The key to sustain our growth is to understand, internalize and pledge to our Mission, Vision & Values.”

OUR MISSIONDevelopment of Society through Entrepreneurship

OUR VISIONMost Admired Integrated Infrastructure Enterprise

OUR VALUES

IntegrityWe choose to be honest in all our Business Interactions and Transactions and remain steadfast even when challenged. We strive for consistency between – what we Think, what we Say and what we Do.

Humility & RespectWe are consistently humble in our approach to and interactions with people. We treat every person with respect at all times, unconditionally.

Organization before SelfWe recognize that organization interest is supreme, above individual preferences and goals. In all our decisions, actions and dealings we put the Organization before self.

Achievement DriveWe have an urge that drives us to intensely focus on performance and act decisively with high energy to achieve the desired results. We strive to continuously learn and consistently set higher Standards of Excellence.

Positive AttitudeWe always demonstrate a ‘can-do’ mind-set and engage to deliver organizational goals. We look upon challenging circumstances as opportunities to enhance our capabilities and find ways of achieving.

AccountabilityWe own up to our words, actions and outcome. When we commit to do something, we own it and we do it – decisively and responsibly.

TeamworkWe work harmoniously with a shared vision, energized by our collective talent. We Trust, Listen to, Share with and Empower team members and take collective responsibility for the results.

InnovationWe value and encourage application of creative ideas that enhance the effectiveness of our business. We freely express ideas and take actions to generate successful Solutions.

Page 2

Board of Directors - Lanco Infratech Ltd.

Mr. L. Madhusudhan

Rao………………………………………..

Executive Chairman

Mr. G. Bhaskara

Rao………………………………………………..

Executive Vice Chairman

Mr. L.

Sridhar…………………………………………………………..

Vice Chairman

Mr. G. Venkatesh

Babu……………………………………………

Managing Director

Mr. S.C. Manocha..

…………………………………………………..

Whole-Time Director

Dr. P.

Kotaiah…………………………………………………………..

Director

Mr. P.

Abraham……………………………………………………….

Director

Dr. Uddesh Kumar

Kohli…………………………………………

Director

Mr. P.

Narasimharamulu………………………………………..

Director

Dr. B.

Vasanthan…………………………………………………….

Director

Key Executives

Page 3

Mr. G Bhaskara Rao Executive Vice Chairman

Mr. L. Madhusudhan Rao

Executive Chairman Mr. G Venkatesh BabuManaging Director

Mr. J Suresh KumarChief Financial Officer

Mr. P Panduranga Rao

Director & CEO-LKPPL Director- APCL & UPCL

Mr. K. Rajagopal CEO-Thermal

Mr. S.C. Manocha CEO-LITL- EPC Division

Mr. K.K.V. Nagaprasad

CEO-LITL- Business Development

Mr. S.K. Mittal CEO-LITL- Hydro Division

Mr. V. Saibaba

CEO-LSPL Mr. S.M. Roy

CEO- LITL- Construction Division

Mr. Arunava Sen CEO-LIPL

Mr. A. A. Khan Executive Chairman-

NETS

Mr. S. Pochendar

Director & CEO-LHTPPL

Core Team Members

Page 4

Mr. Sanjay Divakar Joshi COO – LITL (Business Development)

Mr. Sharad Jhingan COO – LITL (Structured Finance)

Mr. Rakesh K. Gupta COO – LKPPL

Mr. V. Ravindran COO – UPCL

Mr. K.K. Panda COO – LITL-EPC

Mr. Gouranga Ranjan Chowdhuri COO – LITL-EPC

Mr. B.K. Sharda COO – LITL-HYDRO

Mr. Vinod Kumar Kapoor Dy. CEO – LITL-HYDRO

Mr. E. Ravi Keshav President – Corporate Affairs

Mr. S.V. Kamat COO – LITL (Construction Division.)

Mr. Arbinda Guha COO – LITL (Construction Division.)

Mr. P.K. Mazumdar COO – O&M (Sigma Powertech Pvt. Ltd.)

Mr. T. Adi Babu COO – Finance & Accounts, LITL-Corp.

Mr. T. Ravishankar COO – International Solar Farm Business

Mr. K.J. Varkey COO - LVTPPL

Mr. Manoj Kumar Agarwal COO – LITL (Business Development)

Mr. V. S. Gangadhara Rao COO - LSPL

Mr. Pradeep Kulshrestha COO – LITL (Construction Division.)

Mr. M. C. S. Reddy COO - LSEPL

Dr. Satyendra Kumar CTO – LSPL

Mr. Nomi Ahmad COO – L.Int. Pte. Ltd

Mr. L. Yugandhara Babu Director – Finance, Amarkantak

Mr. M.N. Ravishankar Director – Regulatory Affairs and Risk Mgmt.

Mr. B. Manohar Director – Operations, LITL (Const. Div.)

Mr. V. Sreenivas Director – Corporate Affairs, LITL-Corp.

Mr. Philip Chacko Director – Lanco Power Ltd.

Mr. K. Krishna Babu Director – Real Estate, LITL (Const. Div.)

Mr. R.A. Mulla Director – UPCL

Mr. S. Venkata Rama Reddy Director – Liasoning, LHTPPL.

Mr. Brijendra Sharma Director – Technical, LGPPL

Mr. Sanjay Varghese Director – LSPL

Mr. Rajesh Suri Director – Lanco Enterprise Pvt. Ltd.

Mr. T. Vishwanath Director - LSEPL

Page 5

Mr. V. Sri Hari Director – F&A, LITL (Const. Div.)

Mr. L. Uma Maheswara Rao Director – Buildings & Water, LITL-Construction

Mr. Deepak Bharara Director – Corporate HR

Mr. T.N. Subrahmanyam Director – Project Finance

Mr. Sekar S K Director - LBPL

Mr. Gyan Bhadra Kumar Director – LITL - HYDRO

Mr. S. Amarendran Director – Lanco Resources Australia Pty. Ltd

Functional Heads at Corporate Office

Mr. J. Suresh Kumar Chief Financial Officer

Mr. T. Adi Babu COO – Finance & Accounts

Mr. Sharad Jhingan COO – Structured Finance

Page 6

Mr. E Ravi Keshav President – Corporate Affairs

Mr. T.N. Subramaniyan Director – Project Finance

Mr. V. Sreenivas Director – Corporate Communications & Admin.

Mr. Deepak Bharara Director – Corporate HR

Mr. N. V. N. Sudhakara Moorthy E.D & CLO – Group L & D

Mr. D. Krishna Rao E.D – Group Management Affairs

Mr. C. Krishna Kumar E.D & Company Secretary

Mr. S.L. Batta E.D – Legal

Mr. Tanmoy Mondal E.D – Strategy

Mr. Ajay Kumar Dhir Chief Information Officer – IT

Mr. Harish Dua E.D – Group Management Audit

Mr. Dilip Kumar Jha Sr. V.P – Procurement

Mr. Jitendra Mohananey V.P – MIS, Budget & Planning

Mr. Sriram Gopalan Iyengar Sr. G.M – Corporate Treasury

Mr. Lalit Tiwari Sr. G.M – Health, Safety & Environment

Mr. R. Madhusudhan G.M – Insurance

HR Philosophy

We at Lanco aim to be an Employer of choice and strive to be a progressive high performance

group of enterprises that nurtures and develops people with a holistic approach.

We seek to create a challenging and enjoyable work environment that enables Lanconians to

deliver their best effort, realize their full potential and fulfill their career aspiration at LANCO.

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HR Objectives

To design and implement HR strategies, employee-friendly policies and practices to recruit,

develop and retain people to effectively support the group companies.

To enhance individual and organizational capabilities.

To support all employees in developing a culture of continuous and sustained learning.

To ensure that employees are motivated, respected and treated fairly and equitably.

To promote healthy and mutually rewarding relationships by adopting best-in-class practices.

Equal employment practice:The company shall provide equal employment opportunity for all qualified persons and not to discriminate against any employee or applicant for employment on account of race, colour, religion, sex, age and disability.

This applies to recruitment and placement, promotion, training, transfer, retention, pay and other conditions of employment.

Employment and promotion decisions will be based on merit and the principle of furthering equal opportunity.

Hours of work:Corporate Office is normally open from 9:00 am to 5:30 pm and employees may be assigned to different work schedules and /or shifts as prescribed.

Business Conduct: The code of Ethics and conduct to be followed by all employees are outlined in standard business practices.

Each employee should be familiar with policies and practices that cover the business activity, which is his/her responsibility.

Smoke free Environment: The Lanco Group maintains a non smoking policy with in the office. Smoking is STRICTLY PROHIBITED within the premises of Office. Dress Code: The Lanco Group maintains a business working environment and it is suggested that employees need to use a formal wear / attire, which is appropriate for office and customer interaction.

Cadres, Grades and Job Titles

S. No. Job Titles Grade Cadre

1 CEO / CFO TM-I Top Mgmt

2 Dy. CEO TM-I Top Mgmt

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3 COO TM-I Top Mgmt

4 DIRECTOR TM-I Top Mgmt

5 ED SM-II Sr. Mgmt

6 Sr. VP SM-II Sr. Mgmt

7 VICE PRESIDENT SM-II Sr. Mgmt

8 Sr. GM SM-I Sr. Mgmt

9 GM SM-I Sr. Mgmt

10 DGM M-IV M. Mgmt

11 AGM M–III M. Mgmt

12 Sr.Mgr./ Sr.Tech Mgr/Chief Coord. M-I I M. Mgmt

13 Mgr. / Tech.Mgr. / Project Mgr./ Plant Controller M–I M. Mgmt

14 Dy.Mgr E–IV Jr. Mgmt

15 Asst. Mgr E - I I I Jr. Mgmt

16 Sr.Exec./ Sr.Eng / Tech. Officer/ Sr. Web Designer/Sr. Officer

E-II Jr. Mgmt

17 Officers /Exec./ Exec. Assist./ Eng's / Web Designers / Foreman / Chemist

E-I Jr. Mgmt

18 Management Trainees /Engineer Trainees E-0 Jr. Mgmt

19 Sr. Assistants / Assistants / Secretaries / Stenographers/ Asst. Eng/ Sr. Techn. / Jr. Exec./ Receptionists / Clerks / Hardware Techn./Hardware Eng. (Diploma) / Yard Supervisors / Systems Admn. / RO Operator/ Weighbridge Operator

S - I I Non Mgr Staff

20 Technicians / Electricians (various trades) / Operators/ S- I Non Mgr Staff

21 Drivers, Care Takers, Office Boys, Attendants etc. S.S Sub-Staff

Page 9

Employee Leave Rules

ENTITLEMENT OF LEAVE AND ITS AVAILMENT

Casual Leave (CL):

All employees including Probationers, Trainees and Apprentices are entitled for 12 days

of CL for the Calendar Year.

Eligibility will be on proportionate basis for completed calendar month.

CL can be availed for a minimum period of Half-a-day and a maximum of 3 days.

CL can be prefixed or suffixed to any other kind of leave or holidays and any intervening

holiday / weekly off will not be treated as CL.

CL shall neither be carried forward to the next year nor encashed. Un-utilized CL as on

31st December each year will automatically lapse.

Earned Leave (EL):

All permanent employees, who have completed 6 months of service in the Company, are

eligible for EL, on pro-rata basis.

Probationers, trainees and apprentices are not entitled for EL.

Accrual rate of EL is 15 days for a completed Calendar Year.

Employees who join during the calendar year shall be eligible on proportionate basis.

The EL computed in the manner stated above, shall be credited to the employee leave

account in the beginning of the subsequent year i.e. on the first day of January.

EL can be prefixed or suffixed to any other kind of leave or holidays and any intervening

holiday / weekly off will not be treated as EL.

EL cannot be availed for part of a day.

EL can be accumulated up to a maximum of 240 days and shall lapse automatically

thereafter.

Up to a maximum of 50% of such accumulated EL can be encashed, during the

subsequent calendar year, at the option of the employee.

At the end of the service, all unavailed EL credited to the employee can be encashed as a

part of final settlement.

The basis for encashment of EL shall be on Base Compensation i.e.(Cost to Company –

Location Allowance).

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Sick Leave (SL):

All employees including Probationers, Trainees and Apprentices are entitled for 12 days

of SL for the Calendar Year.

Eligibility will be on proportionate basis for completed calendar month.

Sick Leave can be availed only during sickness of the employee.

Sick Leave may be availed for a minimum of half a day.

Availment of SL for a period of more than 3 days shall be supported by medical certificate

issued by a medical practitioner acceptable to the company. The employee is required to

produce a fitness certificate before / at the time of resuming duty.

SL can be pre-fixed or suffixed to any other kind of leave or holidays but any intervening

holiday / weekly off will be treated as SL.

SL can be accumulated up to any number of days.

Unavailed SL can be encashed at the beginning of the subsequent calendar year to the

extent of the days beyond an accumulated balance of Forty (40) days.

At the end of the service, all unavailed SL credited to the employee can be encashed as a

part of final settlement.

The basis for encashment of SL shall be on Base Compensation i.e. (Cost to Company –

Location Allowance).

Maternity Leave (ML):

All female employees of the Company are eligible for maternity leave provided;

The employee must present a qualified Doctor’s Certificate specifying the expected

delivery date and the date from which she would like to proceed on leave and likely date

of resuming work.

ML may extend for a period of up to 12 weeks in a single stretch.

Those female employees covered under the ESI scheme are not eligible to Company’s ML

and Leave Benefits.

Note: In case of any Employee avails any Leave on Saturday, the same would be treated as

Full day Leave.

Notified National Holidays/ Festivals

The list of Annual Holidays for the Calendar Year will be notified by the Corporate HR Department of the Group every year during the month of December in line with the Labour Enactments.

However, the Group Companies located outside the State of Haryana / Delhi may declare the holidays based on the local festivals celebrated in their respective states.

The number of holidays in a year shall not exceed 11 days.

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Employees’ Insurance Coverage Benefits

In addition to the Annual Compensation paid to the employees, with the objective of extending high health care coverage to all the employees, the Company provides a Family Health Insurance Cover, Group Personal Accident Insurance Cover and Group Term Life Insurance Cover, to all the Employees across the Group. The extent of cover is based on the cadre of the employee. The following table shows the employee-wise graded limit of cover.

(Rs. In Lakhs)

CadreFamily Health

Insurance

Personal Accident Insurance

Life Insurance

Top Management (Director & Above) 5 100 50

Senior Management (General Manager to Executive Director)

4 50 35

Middle Management (Manager to Sr.Dy. General Manager)

3 20 20

Junior Management (Dy. Manager to Executive)

2 10 10

Others 2 5 5

Family Health Insurance Cover (Mediclaim)

Other Benefits:

Day one Cover Family Floater (1+5) Family Definition - Employee, Spouse, Dependent Children and Parents Maternity Benefit Rider Coverage to a maximum of six members Covers pre-existing disease Rider Waiver of 1st year exclusion Topping Buffer of Rs.100,00,000/-, available under GMC Policy of Lanco Infratech Ltd.,

subject to the limit of sum insured of the employee and the same can be availed only with the prior approval of the management on case to case basis.

Note: We have tied-up with the Insurer M/s National Insurance Company Limited to provide the Insurance Coverage and the Third Party Administrator, M/s Family Health Plan Ltd., (FHPL) to facilitate the Health Insurance Benefits to all the employees.

Procedure to Claim Health Insurance

Cashless Treatment Process:

Cashless Treatment shall be provided only in network hospitals of FHPL.

For availing cashless treatment:

Employee or his dependants shall show his/her Health Card and shall share the below mentioned information with the hospital:

Name of the TPA (Third Party Administrator). Presently it is Family Health Plan Ltd.

Make sure that Preauthorization form is filled by the hospital and sent to the TPA by fax/e-mail.

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Minimum 24 hrs of hospitalization is a must to claim for insurance. However this is relaxed in respect of the following:

Cataract Eye Surgery

Kidney Stone Removal

Tonsillectomy

D & C

  Note: Out-patient treatments, Out-patient Doctor Consultation, Outpatient Investigations,

Health Checkups are not a part of insurance coverage.

Reimbursement Process:

In case an employee could not avail cashless treatment facility, due to non-network hospitalization or any other reason, then he/she can claim the same by way of reimbursement, after discharge from the hospital within 20 days.

The following documents are required to claim by way of reimbursement:

Claim Form Discharge Summary Hospital Bill & Receipt Medical break-up & Medical bills Investigation reports Doctor’s prescriptions

All the above documents shall be submitted in originals within 20 days from the date of discharge.

Note: Incase of Maternity claims, the Insurance claim is limited to Rs.75,000/- only. Employee cannot claim for Pre-Hospitalization and Post-Hospitalization expenses as these are not allowed for Maternity claim. Also required to submit doctor’s certificate on the obstetric history along with the claim form.

Group Personal Accident Insurance Cover

GPA Insurance Coverage provides financial support in the event of disablement of an employee due to accident and also provides financial support to the family in the event of unfortunate death of an employee in harness.

The following steps shall be taken in case of an accident to the employee:

When accident occurred to any of the employees, it should be reported to H.R. Department immediately.

H.R. will collect the information about the Hospital Name, details of accident and its severity.

Page 13

H.R. will then inform the above details to Insurance Department to pass the same information to the Insurer and T.P.A.

Hospitalization expenses can be claimed under Mediclaim Policy, if the injured person is admitted in a hospital as Inpatient as per the advice of Doctor. However, to claim under Mediclaim, the hospital must have atleast 15 beds, be registered as a hospital with the local municipality and should have nursing and round the clock medical attendance.

Otherwise, if he is treated as Outpatient and discharged immediately or treated in a hospital that does not meet the above criteria, the expenses cannot be claimed under Mediclaim Policy.

The following benefits are extended, if the employee met with an accident:

Death - 100% of Sum Insured Permanent Total Disablement - 100% of Sum Insured Permanent Partial Disablement - % age as assessed by Doctor Temporary Total Disablement - 1% of sum insured or Rs.6000/-

per week, whichever is lower

Weekly benefit is extended for the leave period as certified by the Doctor, since he is unable to attend the duties. This benefit is extended only when the employee is totally disabled, i.e. unable to move around or attend to his normal duties.

For claim, the employee after discharge from the hospital shall submit the following original documents to the Company’s Insurance Department through H.R. Dept:

Discharge Summary issued by the Hospital. Medical Certificate issued by the Doctor for the rest period. Fitness Certificate issued by the Doctor to resume duties. In case of amputation or removal of any organ, the same should be certified by

the Doctor. In case of any permanent partial disability – the percentage of disability must be

certified by the treating doctor. Photo of the employee showing such amputation or removal of any organ. Certificate from the Employer for the Leave Period availed by the Employee. Claim form duly filled.

In case of death claims, a copy of the post mortem report, police report / panchanama , death certificate duly attested are required. Attestation can be done by the Police authorities or a Notary public or by a Magistrate of court.

Company’s Insurance Department will submit all these documents to the Insurer for payment of compensation / weekly benefit.

Insurer will issue cheque in favour of the Company. Then Company will pay the amount to employee after deducting advances, if any, paid by the company during the course of treatment.

Group Term Life Insurance Cover

It provides insurance coverage in the unfortunate event of any type of death of an employee, by providing financial support to his/her family.

Intimation must be given immediately on occurrence of death of an employee.

Death claim must be submitted in writing within 3 months of the date of death, along with the Primary Documents and additional documents (case related), as specified below:

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Primary Documents:

Completed Death Claim Form Proof of Employment (e.g. Certified Copy of the latest Salary Slip) Proof of Age (e.g. PAN Card/ Driving License/ Passport / Birth Certificate. Original Death Certificate Last attending Doctor’s Certificate stating the exact cause of death.

Additional Documents:

In case of death at hospital

All case history papers from the date of admission till the date of death.

In case of Accidental / Unnatural Death

A Certified Copy of the FIR filed with the Police Authorities A Certified Copy of the Post Mortem Report / Autopsy Report A Certified Copy of the Driving License if death occurred while driving

Employees’ Provident Fund/ Family Pension Scheme

The employee whose Basic Salary is Rs.6,500 /- and below, shall contribute at the rate of

12% of Basic Pay and the Company has to make a matching contribution of 12%, since it

is mandatory. However, even the employee who is drawing more than Rs.6,500 /- of

Basic Salary, can also opt to contribute for PF, if he so desires.

The contribution shall be apportioned in the following manner:

Nature of FundContribution %

Employer Employee Central Govt.

EPF 3.67 12.00 Nil

EPS 8.33 Nil 1.16

EDLI 0.50 Nil Nil

Contribution under EPS shall be restricted to 8.33% of the pay subject to the pay being

reckoned for a maximum of Rs.6,500/- (Rs.541/-) and the balance amount being credited to

the EPF a/c.

Employee CTC is inclusive of Employer’s contribution.

An employee is eligible to draw the balance outstanding in his / her name at the time of;

Termination/Cessation of service

Retirement or Reaching the superannuation

Demitting office for any other reason.

In the event of the death of the employee while in service, the provident fund available to

his credit shall accrue to the legal heir / nominee of the employee.

An employee who resigns from the service of the company and taken up re-employment

elsewhere, the provident fund accrued to him during the period of his service, can be

Page 15

transferred to his / her new employer, provided the Employee Provident Fund &

Miscellaneous Provisions Act 1952 is applicable to the new employer.

An employee is eligible to draw a loan against his contributions made to the PF for certain

reasons as may be specified under the Act from time to time.

Employee Pension Scheme 1995:

All employees of the company who are members of the PF shall be members of the EPS.

The employee shall not have attained 58 yrs. of age.

No. of years of service of the employee shall be a minimum of 10 years. Part of the year being rounded off to a nearest year.

Employees who have completed 20 years of service shall have the benefit of additional 2 years weightage for computation of pension.

Risk cover :

The Scheme covers members death risk unconditionally - i.e. irrespective of whether such

death occurs while in service away from employment and not contributing to the fund ; or

after retirement as a pensioner.

Types of pension :

Member Pension On superannuation / Disablement

Widow PensionUpon death of the member while in service, away from employment

or after superannuation as a pensioner.

Children Pension Additionally along with widow pension

Orphan PensionAfter death of the member and the widow / widower or on ceasing

widow pension payment on remarriage of widow / widower.

Nominee Pension Upon death of the member having no family.

Commutation:

Commutation is permissible up to one third of pension amount.

Commuted value will be 100 times of the pension amount commuted.

Upon commutation, capital return option will be restricted to the balance amount of pension only.

Employees’ State Insurance Scheme (ESI)

Coverage of employee:

Employees drawing gross salary up to Rs.15,000/- per month shall be covered under the scheme.

Page 16

Rate of contribution:

The company / employee shall make monthly contribution as under:

Employer contribution: A sum equal to 4.75% of the Gross Salary payable to an employee.

Employee’s contribution: A sum equal to 1.75% of the Gross Salary payable to an employee.

Benefits:

The covered employees and their dependants can derive benefits in the event of Disablement, Maternity, Medical and Funeral expenses.

Reimbursement of LTA & Medical Expenses

LTA:

As per the Income Tax Act, every employee is eligible to claim the reimbursement of Leave Travel Assistance (LTA) twice in a block of 4 years.

For claiming the LTA, the employee shall comply with the following:

All the confirmed employees whose Annual Compensation (CTC) includes LTA are eligible to opt for reimbursement of LTA.

The employee should have completed minimum of 6 months service in that financial year.

The employee should be on travel for a minimum of 3 days during his LTA period.

The employee can claim only travel expenses in relation to his/ her travel (including family) to any place in INDIA. Lodging and Boarding expenses are not eligible for LTA claim.

The claim shall be in standard travel form i.e. Travel Expenses Claim ( TEC ) form along with original invoice / tickets along with receipt for payment of that invoice / ticket.

An employee can claim tax exemption twice in a block of 4 years. If one claims LTA more than twice in a block of 4 years, the extra claims will be taxable in the hands of employees and TDS shall be deducted by the Company.

If an employee would like to club the eligibility of two years to claim in the second year, he/she can opt it so by giving written communication to the Company on or before 31st March of that financial year. In such a case, the maximum limit is two months basic pay and other terms remain the same.

After availing his/her LTA in a year, if the employee resigns before completion of that financial year, the Company shall recover the LTA amount in proportion to the unexpired period in that financial year from his/her final settlement.

If any of the employees could not travel twice in the block of 4 years, he/she can carry forward one eligible trip to the next block and he/she shall complete the travel in the 1st year of that new block.

For the employees, who have neither submitted their claim for LTA reimbursement with bills nor informed to company about option of clubbing with next year on or before 31st March, the Company will pay the eligible amount of LTA of that year.

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However the Income Tax (TDS) at applicable rates will be deducted from this amount and only the net will be paid.

The LTA claim shall be made in the standardized "Form for Claim of LTA", prescribed

for the purpose.

The said form is a declaration cum undertaking in respect of LTA claims.

Travel tickets, bills/invoices etc., need not be enclosed to the claim form.

In this connection, the following are clarified for the benefit of employees.

"Family" means spouse and children of the employee, parents, brothers and sisters wholly or mainly dependent on the employee.

Tax exemption is restricted to two children if born after 30th

September 1998. But multiple births (twins or more) after one child are considered as one child only. However all children born before 01st October 1998 are eligible for LTA claim.

Employees being the beneficiaries of LTA are solely responsible forproving their claim for exemption under extant Income Tax Rules.

Medical:

The reimbursement of Medical Expenses will be made on submission of original bills at any time during the respective financial year but subject to the maximum eligibility of that employee.

If an employee claims his/her full year medical eligibility by submitting the bills but resigns without completing the full financial year of service, the amount in proportion to his balance service period in that financial year shall be recovered from his last salary or final settlement amount.

The medical bills can be submitted for reimbursement to the HR dept of respective division / Company at any time during the quarter.

If an employee could not produce bills either fully or partly against his/her eligible amount during the financial year on or before 31st March, the same shall be paid in the succeeding month of that financial year i.e. April. However, the Income Tax (TDS), at applicable rates, will be deducted from this amount and only the net will be paid.

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Reimbursement of Fuel Expenses

The employees in the cadre of Sr. Deputy General Manager to Deputy Manager can opt to have a part of their CTC towards reimbursement of fuel expenses. The details of the scheme are given below.

The maximum limits that can be opted by the employees in the cadre of Sr. DGM to Dy. Manager, are as under:

Limit on Monthly Fuel Bills up to (Rs.)

Sr. DGM / DGM

AGM Sr. Manager Manager Dy. Manager

For Delhi Employees 8,000 6,000 5,000 4,000 3,500

For Others 6,000 4,000 3,000 2,000 1,800

The vehicle should be owned by employee or employees spouse, parents or children and before opting of the scheme he / she should produce a copy of Vehicle Registration certificate to the Company.

The bills shall be submitted only once i.e. on 25th of every month to the Finance department as per the entitlement. The same will be paid by the Finance department to the employees on or before 5th of next month.

If the amount of bills submitted are less than the eligible amount, the difference amount can be carried forward to the subsequent months and at the end of the year if the difference exists the same can be claimed in writing by employee on or before 15th March of the financial year and it will be added back to the special allowance / location allowance and tax will be deducted as per the applicable slabs.

The employees who opt for this reimbursement are not eligible for transport allowance which is being paid presently as mentioned in their pay slips up to maximum of Rs.800 /- P.M.

There is no facility of carrying forward of any short fall in reimbursement to the next financial year.

In case of transfer / resignation or promotion to GM cadre of any employees the short fall amount i.e. amount of bills submitted is lower than his / her eligibility, the difference amount shall be added back to his last salary as location / spl allowance and tax will be deducted accordingly.

Higher Education Reimbursement ProgramPage 19

Objective

To encourage employees to acquire higher educational qualification, for their self-development.

To ensure uniformity in the matter of reimbursement of education expenses.

Scope

This Policy is applicable to -

Employees (on regular rolls) across the Group in the cadre of Sr.DGM & below, after completion of one year of their service in the Company.

Degree/Master degree/ PG diploma/ PhD programs conducted by recognized universities in India / Abroad.

Correspondence courses conducted by Universities, recognized institutes including AICTE approved institutes and all India recognized bodies such as NPC, ICA, ICWA, ICSI, AIMA, NIPM, ISTD, NITIE, and /or other courses recommended by the Business.

This scheme does not cover residential seminars/full time courses /courses outside India.

On successful completion of the authorized course, employee will be reimbursed 75% of enrolment/tuition/examination fees on production of relevant degree/diploma certificates together with the fee receipts, subject to a maximum of Rs.75,000 /- per course.

Cost of books/reading material will not be reimbursed, except where it forms part of the course fee, as in the case of some correspondence courses.

Procedure

An employee may enroll for only one course at a time under this scheme.

The course shall be relevant to the job and the HOD shall approve the same.

Employees, after enrolling for a recognized educational course, shall submit the educational reimbursement claim in the prescribed format (Annexure I) to HR with the approval of HOD.

HR will file the original form in the Personal File of the employee.

On successful completion of the course, the employee needs to submit original fee receipts and copies of marks sheet along with the claim form in the prescribed format (Annexure II) to HR.

HR will verify the receipts and send the documents to accounts Department for reimbursement and update details in the personal database.

Employee shall collect the Cheque from the Finance & Accounts Department of her/his location.

Other General Guidelines

Employees must ensure that the course timings including any project work does not conflict with his /her working hours/work requirements.

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Authorization of the course under the scheme shall not take away the obligation of the employee to put in additional work hours, on travel, etc., when required.

No relaxation of leave rules may be claimed for the purpose of preparation/appearing for the examination.

The management will have the discretion to accept or reject the application made under the scheme and its decision shall be final.

Completion of the course under the scheme does not make the employee eligible for any increment, promotion merely on the strength of the additional qualification.

In case an employee is transferred at the Company’s instance and cannot continue the course due to this transfer, s/he will be reimbursed 100% of the expenses incurred by her/him prior to the date of transfer, on production of relevant fee receipts, subject to ceiling limit mentioned in Clause 2.5.

If the employee is terminated or resigns from the services of the Company within one year of completion of course, the company will recover the entire amount so reimbursed.

Employee will be allowed up to a maximum of two courses during his/her tenure of 5 years (one course in 2 ½ years).

Travel (Domestic & Foreign)

Nature of Travel:

All the staff members shall undertake travel due to exigencies of work. In such cases, their immediate Superior shall communicate to the concerned about such travel that may involve travel –

Within the city / town limits of their normal place of work (Local Conveyance) Anywhere in the country, outside their current location (Domestic travel) Outside the country (Foreign travel)

LOCAL CONVEYANCE :

Vehicles provided by the Company:

The employees in the cadre of GM & above would be provided a Chauffeur driven Vehicle for their conveyance for official use as per the ‘Policy on provision of Company-Owned Vehicles to Employees’.

The employees in the cadre of Sr. DGM & below would be paid Conveyance Allowance/Fuel Expenses reimbursement as part of their remuneration towards the expenses incurred by them for commutation between their place of residence and place of work.

Local conveyance expenses incurred by the employees in attending any assigned work that involves local travel within the city limits shall be reimbursed at the following rates –

i) For Local visits for official purpose only – Auto charges (actuals)

ii) If own transport is used – Reimbursement is as follows:- For Two Wheelers - Rs. 5.00 per KM - For Four Wheelers - Rs. 10.00 per KM (Asst. Manager and above)

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Local conveyance expenses may be reimbursed to the employees to the extent that such claims are fair and legitimate. The competent authorities shall apply prudence before approving such claims. As far as possible, every office shall minimize such expenditure.

PRE TRAVEL PROCEDURE:The following Travel procedures apply to Domestic as well as Foreign Travel:

Authority to travel: The employee shall be authorized by his HOD/Superior Officer indicating the location to be visited and the period of travel in the prescribed Travel Plan Approval Form (TPA-Appendix -1)

Drawal of Advance: The employee shall make a request for advance in the TPA and the HOD as per the entitlement of the employee shall approve the same.

Support Responsibilities:

The employee shall make his/her arrangement to undertake the journey and the following support shall be provided by other connected departments to facilitate his / her on travel.

ActivityResponsibility/

Department

Submission of requisitions for reservation, Drawal of advance Indenting Dept.

Purchase of tickets, Reservations, Local transport, VISA & Insurance for foreign travel. ADMN Dept.

Release of Advance / Foreign Exchange F & A Dept.

Payment of Travel Agents / Booking Agents’ fee as per contractual obligation F & A Dept.

Settlement of TECs F & A Dept.

PERMISSIBLE EXPENSES ON TRAVEL :

While on Domestic Travel, the following expenses shall be treated as permitted expenses.

a) Hotel (Lodging) & Boarding / Daily Allowance & incidental expenses

Hotel (Lodging) Expenses or Room Rent as per the eligible rates. Taxes and surcharges shall be over and above the specified rates.

Daily Allowance – Which shall include Boarding, room service charges in case of stay in a Hotel, tips etc.

Incidental Expenses which shall include Official phone calls, Cloak room charges, business center (Photocopy, Internet charges etc.)

b) Travel & Conveyance:

Expenses on self-driven cars with bills or on taxes with vouchers / bills. Inter city travel cost such as by trains, buses etc. Reasonable excess baggage charges, Airport arrival / departure taxes Air ticket / re-routing costs Porterage, Vehicle parking charges.

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Any other Business Expenses would not be incidental to the travel and should be claimed separately. The competent authority shall consider such claims on merits.

OBTAINING BILLS ON TOUR – Dos & Don’ts

Do’s:

Travel Tickets should be obtained in original. In case of Air travel the original Boarding passes should be retained for production

along with the Travel Claim. All Bills / Receipts should be originals and must display the break-up figures (eg. Rent

+ VAT = Total). In the absence of break-up, the bill should have the legend to the effect that "ALL

RATES INCLUDE VAT" or "INCLUSIVE OF VAT" or similar notings. Bill should have the Name, Address & the VAT registration number of the commercial

establishment and the bill should be issued in original.

Don’ts:

Accepting a carbon / duplicate copy or a hand written bill on plain paper. Bills having notings viz.,

Statements, Information, This is not a Tax invoice

Post-Travel Procedure:

After undertaking the Travel all employees are required to submit a Tour Report and the Travel Expenses Claim (Appendix – 2) within prescribed time. TECs submitted without the Tour Report shall not be approved.

Submission of tour reports:

It is imperative that ‘Tour Report’ is given the importance that it deserves. On return from tour the report must be submitted to the Superior Officer / HOD at the earliest but not later than seven (7) days after returning from the tour furnish the following information:

Purpose of the tour Details of assignments completed (Business development, Client support, etc.) List of persons / institutions / clients visited Suggested follow-up action.

Submission of TEC Claim:

The TEC submitted by the employee shall be settled in the prescribed manner and as provided hereunder.

Before submission of the TEC the following points are to be adhered to:

Supporting Bills / Receipts / Tickets etc., are to be arranged under appropriate head of Actual Expenses (viz., lodging, local conveyance etc.) in a chronological order.

All supporting Bills / Receipts / Vouchers / Journey Tickets shall be enclosed in original except for conveyance etc.

Mode of travel for local conveyance used shall be written in expense statement. Boarding Passes must be enclosed to the TEC.

In case of Foreign Travel:

The expenditure has to be stated currency wise indicating the rate of conversion wherever applicable.

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Rupee expenditure shall be grouped separately.

Settlement of Claim:

(i) The employee shall submit Tour Expenses Claim Form (TEC) within seven (7) days of completion of the tour through his/her Superior Officer /HOD. The HOD shall recommend and process the claim only after confirming the receipt of Tour Report.

(ii) The employee shall return the excess amount of advance / foreign exchange if any drawn within seven (7) days of the completion of the tour to F&A and obtain a receipt/voucher copy as evidence thereof.

(iii) The HOD considering the entitlement of the employee shall scrutinize the TEC, places visited, mode of travel, period of travel and the correctness of the computation. Deviation if any shall be brought to the notice of the CEO / MD / Vice-Chairman who will examine and decide the same on merits. Thereafter, the TEC would be settled in accordance with the Travel Policy and the approval for deviations if any by the Superior Officer / HOD.

(iv) The TEC shall thereafter, be forwarded for payment to F&A Dept.

(v) Any discrepancy noticed by F&A Dept. shall be brought to the notice of the approving authority for rectification.

DOMESTIC TRAVEL

Mode of Travel:

Eligibility of Mode & Class of Travel of the employees (cadre wise) is as detailed hereunder:

Cadre Eligible Mode & Class of Travel

Group Chairman/ Vice Chairman/MD Air - 'J' Class / Train – I AC / Road - AC Car

CEO Air - 'J' Class / Train – I AC / Road - AC Car

COO / Director / ED / Sr. VP / VP / Sr.GM / GM / Sr.DGM / DGM / AGM

Air - 'Y' Class / Train – I AC / Road – AC Car/ AC Bus

Sr. Manager / Manager / Deputy Manager / Asst. Manager Train – II AC / Road–Bus AC

Sr. Executive/Executive/Jr. Executive/GETs/MTs Train - III AC / Road - Hi-Tech - Bus

All othersTrain - II Sleeper, Road - Bus Deluxe / Express (Non-AC)

Upgradation :

Officials who are required to travel by a mode higher than their normal entitlement should seek the prior approval of VC/MD/CEO.

Computation of Outstation Time:

For the purpose of computation of entitlements, the time spent on travel and stay outside the place of work shall be treated as ‘Outstation duty time’.

The rate of Daily Allowance (D.A) shall be determined on the basis of ‘Outstation duty time’ as follows:

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Outstation duty time Entitlements

Up to 8 hours Half day’s Daily Allowance (D.A)

Above 8 hours to 24 hours Full day's Daily Allowance (D.A)

Any part in excess of 24 hours i. Up to 8 hours – Additional half day’s D.Aii. Above 8 hours – Additional full Day’s D.A

For this purpose, the time spent from the time of departure from Head quarters to the time of return to Head Quarters shall be treated as ‘Outstation duty time’.

Eligibility for Hotel (Lodging):

Wherever the Company Guest House is available, the visiting employee shall stay in the Guest House by seeking reservation in advance.

Only in the event of Non-availability of rooms in the Guest House, the employee would stay in a Hotel.

Considering the fact that Hotel (Lodging) Expenses vary in according to the City/Town visited, the eligible Hotel (Lodging) expenses are prescribed hereunder (Excluding Taxes)

Cadre

‘A’ CLASS Locations

‘B’ CLASS Locations

‘C’ CLASS Locations

Kolkotta, Delhi,

Mumbai & Chennai

All other State Capitals & Pune,

Mysore, Jamshedpur, Vizag

& Coimbatore

All other locations

Lodging Lodging Lodging

Group Chairman/VC/MD Actual Actual Actual

CEO Actual Actual Actual

COO / Director / ED 12000 7000 4500

Sr. VP/VP/Sr.GM/GM 10000 6500 4000

Sr. DGM/DGM/AGM 8000 5000 3500Sr. Manager/Manager/ Dy. Manager/Asst. Mgr.

6000 3500 2500

Sr.Executive/ Executive/ Jr. Executive/GETs/MTs

4000 2500 1500

All others 1000 800 600

Daily Allowance:

In case of an employee staying in the Company’s Guest house or a Hotel he/ she would be eligible for Daily allowance as per the table given below towards boarding and incidental expenses.

The following rates of Daily Allowance shall also be applicable to employees who are deputed to an out station duty which does not involve over night stay.

CADRE‘A’ CLASS Locations

‘B’ CLASS Locations

‘C’ CLASS Locations

Group Chairman/VC/MD Actual Actual Actual

CEO Actual or 1500

Actual or 1200 Actual or 900

COO / Director / ED 1200 900 700

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Sr.VP/VP/Sr.GM/GM 1100 800 600

Sr.DGM/DGM/AGM 1000 700 500

Sr.Manager/Manager/ Dy.Manager/Asst.Mgr. 800 500 400

Sr. Executive/ Executive/ Jr.Executive/GETs/MTs

600 400 300

All others 400 300 200

In case of outstation duty involving overnight stay at the place visited and where the own arrangement is made for stay, the employee would be entitled to Daily allowance including boarding expenses as per the table hereunder:

CADRE‘A’ CLASS Locations

‘B’ CLASS Locations

‘C’ CLASS Locations

Group Chairman/VC/MD Actual Actual Actual

CEO Actual or 2500

Actual or 2250 Actual or 2000

COO / Director / ED 2000 1750 1500

Sr.VP/VP/Sr.GM/GM 1750 1500 1250

Sr.DGM/DGM/AGM 1500 1250 1000

Sr.Manager/Manager/ Dy.Manager/Asst.Mgr. 1250 1000 750

Sr. Executive/ Executive / Jr.Executive/GETs/MTs 1000 750 500

All others 900 650 400

Local Conveyance While on Tour:

Employees while on Tour to locations outside their Head Quarters would be eligible for Local Travel at the place of visit as per the following Mode & Class of Travel as detail hereunder:

Category Mode & Class

GM & Above Hired Car /I Class Local Train

AGM to Sr.DGM Hired Car / Auto / I Class Local Train

Asst. Mgr to Sr. Mgr Auto /I class local Train

Sr. Exec & Below Auto / II Class Local Train

FOREIGN TRAVEL

Mode of Travel:

The employees in the cadre of CEO and above are entitled to travel in Business Class. Employees in the cadre of COO to ED may travel in Business Class wherever the air-borne time exceeds FOUR (4) hours. Where the airborne time is four or less than four hours they shall travel by Economy Class. Employees in all other cadres deputed to travel abroad shall travel in Economy Class only.

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Entitlement:Employees deputed to foreign locations on official assignments shall be entitled to such allowances and benefits as detailed hereunder:

The company shall reimburse the expenses / pay allowances as per the following entitlements.

CADREDAILY EXPENSES

LODGING, BOARDING & LOCAL CONVEYANCE EXPENSES IN US($)

SPECIAL ALLOWANCE IN US ($)

COO & Above Actual 75

Director/ED 400 75Sr. VP/AGM 300 50Below AGM 200 50

Note : The above specified entitlements may exceed with the approval of CEO

LIST OF PERMITTED OFFICIAL EXPENSES :

While on deputation to a foreign country, the permissible daily expenses at actual shall include the following:

Lodging, Boarding & related incidental expenses

Room Rent together with taxes and service charges Boarding Expenses for self and business associates if any. Official phone calls Business centre (Photocopy, Internet charges etc.), vehicle parking, safe custody charges.

Travel & Conveyance:

Expenses on self-driven cars with bills or on taxis with vouchers / bills. Inter city travel cost such as by trains, buses etc. Excess baggage charges. Airport arrival / departure taxes Visa / entry charges Air ticket / re-routing costs Porterage

Inland travel expenses including boarding and lodging and incidentals incurred prior to and at the end of the tour would be in accordance with the domestic travel policy of the Company.

Mode of Payment:

All the employees traveling abroad will be required to settle their hotel bills by cash and or through international credit card.

Limitation for Claims:

All Foreign Travel claims have to be submitted within 7 days from the date of return from the travel.

Transfer of Service – Reimbursements

Employees transferred from one location to another are eligible for reimbursement of connected travel expenses as per travel policy and shall be extended certain benefits and the employee shall make his/her claim in the TEC Form.

New Recruits where relocation would be involved may also be extended all or any of these benefits as applicable to the cadre for which they are recruited on a case to case

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basis on merits at the sole discretion of the VC/MD/CEO. In such cases, the same shall be agreed during the interview and intimated to the candidate in the offer letter issued to him.

TRANSPORTATION, PACKING, FORWARDING & TRAVEL EXPENSES –

CADRE Packing, Forwarding & Transportation Charges

Entitlement for reimbursement of

Travel & Transhipment Expenses

GM & Above

Actual Transportation Cost by rail / road in a standard goods carrier / wagon / container. Actual cost towards packing & forwarding expenses.

a) Reimbursement shall be made as per claims based on eligible mode of travel.

b) In case of employees eligible for Air Tavel (Business Class or Economy Class), the Family Members of the employee shall perform journey in Economy Class only.

c) Transshipment charges / porterage in respect of personal effects and baggage accompanying the employee / family performing the journey shall be paid as per Cadre.

AGM to Sr.DGM

Actual Transportation Cost by rail / road in a standard goods carrier / wagon / container up to a maximum of 7 MTs.

Actual cost towards packing & forwarding expenses not exceeding Rs.6,000/-.

Sr. Manager & below

Actual transportation Cost by rail / road in a standard goods carrier (Half load / LCV) / wagon (Half load).

Actual cost towards packing & forwarding expenses not exceeding Rs.3,000/-

Transport of Vehicle:

Employees in the cadre Asst. Manager & above, shall be eligible for reimbursement of cost of transporting four wheelers owned by them by Railway goods carriage or if transported by road, @ Rs.10/- per KM through the shortest route.

In respect of two wheelers owned by the employees, packing and transporting expenses shall be reimbursed on actual considering the distance involved subject to a maximum amount of Rs.2,500/-

RELOCATION EXPENSES :

An employee on transfer shall be paid one-month's basic salary as Relocation Allowance (without production of any expenditure vouchers), which shall be disbursed along with the salary for the month following the transfer.

Rationale: Since an employee and his family undergo certain discomfort on transfer to a new place and at the same time, they also incur certain additional expenses in terms of re-admission in school, fixtures, etc., the Relocation Allowance would defray part of such expenses.

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Special Leave: Employees who undertake journey on transfer face certain hardships during the period of transit and relocation.

Employees who shift their family on transfer shall be eligible for 5 days special leave with full pay & allowance.

Employees who relocate themselves without shifting the family are eligible for 2 days special leave with full pay & allowance.

The special leave shall be treated notional as on official duty.

Special leave can be availed immediately before the commencement of the journey or after completion of the journey or can be split as a suffix & prefix to the journey period.

However, the new recruits are not entitled for above Relocation Expenses.

Hotel (Lodging) Expenses on Transfer:

An employee on transfer shall be entitled to accommodation at the new location either at the company’s Guesthouse or alternatively in a Hotel as per his eligibility for maximum period of 15 days or until he secures accommodation at the new location, whichever is earlier.

COMPANY–OWNED VEHICLES TO EMPLOYEES

All Employees in the Cadre of GM and above shall be provided with a Company-owned Vehicle as per the agreed terms of employment, in line with the details mentioned in the table below:

S. No. Cadre Make Model 'Maximum Limit' *-On Road Cost of

Vehicle at Gurgaon (Rs.

in Lakhs)

1 Chairman – 2 Cars Actuals

2 VC – 2 Cars Actuals

3 MD 79.88

4 MD -Second Car/Third Car Any Make & Model 33.17 / 20.59

5 CEO (With 8 or more years of experience in Lanco)

58.58

6 CEO (Less than 8 years of experience in Lanco)

33.17

7 CEO-Second Car [All] Honda Accord 2.4 MT-Elegance 20.59

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8 COO Toyota Camry W 1 MT 24.44

9 Directors Honda Accord 2.4MT-Elegance 20.59

10 Executive Directors Honda Civic 1.8 VMT 14.42

11Senior Vice Presidents / Vice Presidents Toyota Corolla Altis 1.8 G 12.80

12Senior General Managers / General Managers Honda City 1.5 S - MT 9.37

* The 'Maximum Limit' means 'on-road cost' of the vehicle at Gurgaon.

* In locations other than Gurgaon, 'on-road cost' of the vehicle of the make & model eligible for the Cadre will apply as the 'Maximum Limit'.

* The employee may request the company to procure a 'Make & Model' of his/her choice, within the 'Maximum Limit' of the cadre at that location.

The terms of Appointment should specifically mention provision of Vehicle, Chauffeur and Fuel to the concerned employee. The other related conditions are as follows:

The Employee shall be the custodian of the Company's Vehicle provided to him/her and shall ensure that it is well maintained by the Chauffeur.

The Company shall pay the Road tax & Insurance charges in respect of the vehicles.

Major repairs / replacements (replacement of tyres etc.) to the vehicle involving large expenditure shall be met by the Company. Wherever required claim would be made with the Insurer.

The original / photocopy of the documents pertaining to the vehicles (Registration Book, Insurance, tax receipt, etc.) will be handed over by the Company to the employee and the latter is expected to carry the documents in the vehicle and produce the same before any Inspecting authority whenever required.

The employee shall not -

Use the vehicle for transportation of Contraband / prohibited items. Allow third party to take possession of the vehicle or use the vehicle. Lease or hire out the vehicle to the third party.

The employee shall keep the vehicle in his residential premises or shall hand over the same to the custody of the Company's authorized official during long period of leave/ involving travel outside headquarters.

In case of accident, damage or theft of the vehicle, the employee shall inform the Police, Insurance / Company authorities/officials immediately for necessary action.

Any vehicle found not road-worthy may be withdrawn on the recommendation of the Administration Department and approval by the Head of the Business Unit/Company/Division.

Any vehicle which has run 2 Lakh KMs or is 6 years old from the date of purchase [whichever is earlier] may be disposed off by the Company, and another vehicle may be provided to the employee. In any case, if the vehicle is less than 4 Years old from the date of purchase, even though it has run 2 Lakh KMs it shall not qualify for disposal.

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The Company shall provide a vehicle of eligible/similar make & model from the existing pool of cars available within the Company. The vehicle provided by the Company need not necessarily be a new one.

Employee Salary Advance

Employees who have completed Six Months of service may avail interest-free salary advance at the discretion of the management not exceeding the net take home pay of the previous month.

This advance is recoverable in Five Equal Monthly Installments starting from the subsequent month’s salary.

Salary advance shall be paid to the employees who request for such an advance for a specific genuine reason, in writing to the management.

In case of sickness of self or immediate dependents / marriage of self or blood relations, the management is pleased to enhance the salary advance.

Not exceeding 2 ½ (two and-a-half) months net take home salary, for Senior Manager & below, to be recovered in 12 (Twelve) Equal Monthly Installments starting from the subsequent month’s salary.

Not exceeding 2 (two) months net take home salary, for AGM and above, to be recovered in (5) Five Equal Installments starting from the subsequent month’s salary.

The Employee is entitled to avail salary advance once in a financial year.

Mobile Phone Facility

Eligibility[

Employees in the cadre of GM & Above are eligible for this facility. In respect of all other cadres of employees, the eligibility of this facility is purely on need basis, subject to recommendation of HOD and approval by respective CEO/SPV Head.

The grade-wise entitlement is as detailed in Table – I.

Table – I

Category of EmployeesUpper limit of

entitlement for Instrument in Rs. *

Monthly Bill Entitlement

in Rs.**ISD Facility

COO & Above Actuals ***Actuals YesDirector/ED 25000

Sr. VP/VP 20000Sr. GM/GM 15000Sr. DGM/DGM/AGM 9000 2000 On ApprovalSr. Manager / Manager 6000 1500Dy./Asst. Manager 4000 1000Sr. .Exec/Exec./Secretary 2500 750Drivers 2000 500

The following are the eligibilities for secretaries of senior level employees, to provide e-mail / internet access for smooth/quick business transactions. This facility is purely on need basis subject to recommendation of HOD.

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Category of EmployeesUpper limit of

entitlement for Instrument in Rs. *

Monthly Bill Entitlement in

Rs.**Secretary to COO 13000 1500

ActualsSecretary to CEO & Above 15000 2000

* Including the cost of all accessories and taxes.** Monthly Bill includes rental, usage charges and service tax.*** Can have Black Berry Phone in addition to another phone.

For all purposes, the life of the instrument shall be considered as 36 months.

The instrument will not be replaced before 36 months from the date of purchase. In case of loss or theft, the employee shall purchase the instrument at his own cost.

On completion of 36 months from the date of purchase of instrument, the employee can buy the instrument at Market Value.

Procedure for claiming the reimbursement of cost of instrument

Employee shall purchase the instrument of his choice from the market and claim for reimbursement in line with his entitlement as mentioned in Table-I. The same shall be processed by Administration Department and released by Finance department, on production of Original Invoice drawn in the name of concerned Company, duly certified by concerned HOD.

In the event of Promotion to the next grade, the employee shall refund the cost of existing instrument to the Company on pro-rata basis (to the extent of balance life period of instrument), retain the instrument with her/him and apply for the purchase of new instrument in line with the new grade.

Procedure for reimbursement of monthly usage charges

The reimbursement shall be governed by the entitlement as mentioned in Table I.

The Company will pay the Monthly Mobile Bill amount to the service provider where the bill amount is less than or equal to entitled amount. In case, the bill amount exceeds the entitlement, the employee has to pay directly to service provider and claim for the reimbursement of entitled amount from the company.

Incase, where the bill amount in excess of an entitlement is certified/ approved by HOD of the employee as official usage, the same will be released by the company to the service provider.

Separation

In the event of Separation due to Resignation, Termination or Superannuation, the employee shall refund the cost of existing instrument to the Company on pro-rata basis (to the extent of balance life period of instrument and retain the instrument with her/him.

General Conditions governing the policy

The onus of repairs & maintenance of instrument lies with the employee.

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The eligibility for subsequent purchase of new mobile instrument shall be after completion of 36 months from the date of issue of the previous one.

The instrument reimbursed by the company, will not be taken back under any circumstances.

All Senior Executives (GM & Above) who are provided with the Company owned Laptop are also entitled for provision of Data Cards along with mobile phone.

The company reserves the right to withdraw the facility to some or all the employees at any point of time.

In case of employees below GM cadre, allotment of mobile facility is purely on NEED BASIS subject to recommendation of HOD and approval by respective CEO/SBU Head. However, all employees in the cadre of GM & above, do not require any approval for providing mobile facility.

All other terms and conditions shall be as per the existing Policy on Mobile Phone Facility to Employees.

Laptop & Data Card Facility

Employees in the cadre of GM & above across the group are eligible for this facility.

In respect of all other cadres of employees, the eligibility of this facility is purely on need basis, subject to recommendation of HOD and approval by respective CEO/ SPV Head.

In line with the technology advancements and according to the needs of different users, Corporate IT will evaluate the usage and recommend the minimum configurations required. The recommended configuration will be reviewed and updated periodically by the IT team (typically in intervals of minimum six months) or early in case there is a change in technology, Price or both.

The grade-wise entitlement is mandatory be followed are as mentioned in below table.

Grade Designations Max Value in INR*

TM-I Director and above 1.10 lakhs

SM-II VP / Sr. VP / ED 0.60 lakhs

SM-I GM / Sr. GM 0.50 lakhs

M-I to M-IV DGM/ AGM/ Sr. Mgr. /Mgr./ Dy. Mgr. 0.45 lakhs

* * The above value limits are based on the configuration and details mentioned in Annexure-I

Minimum recommended configuration, make and model in all the grade are mentioned in attached Annexure-I.

For all purposes, the life of the LAPTOP shall be considered as 60 months.

The LAPTOP will not be replaced before 60 months from the date of purchase. However if

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it is not meeting the required performance standards after the specified period, it can be upgraded to its specification needs after a formal request from HOD and approval from CEO/SPV head with recommendation from IT department.

All the LAPTOPS will be under comprehensive warranty and also covered under group insurance. However employee is expected to take whole responsibility of the LAPTOP and the data it carries.

On completion of 60 months from the date of purchase of LAPTOP, the employee can buy the LAPTOP at book value or at market value as suggested by the technical team.

In the event of promotion to the next grade, the employee shall be eligible to change the laptop as per his new eligibility. The change of laptop shall be processed after receiving a formal request and approved from respective CEO/ SPV head. This change of laptop does not mean a new purchase; it may also be from the stock if available.

In the event of Separation due to resignation, termination or superannuation the employee shall handover the LAPTOP in working condition. In no condition the employee is eligible to take a copy or delete any information available on the Laptop.

The data on the laptop will be backed up on the server and formatted before allotting to the new user if no special instructions received from HOD.

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The HOD shall be responsible for all the information available on the laptop.

The eligibility for subsequent purchase of new LAPTOP shall be after completion of 60 months from the date of issue of the previous one.

All senior executives (GM & above) are also entitled for provision of data cards along with laptop but this facility is purely on need basis and shall be made available after providing a formal request.

In respect of all other cadres of employees, the eligibility of data card facility can be provided, subject to recommendation of HOD and approval from respective CEO/ SPV Head.

Employee in the grade TM-I are eligible to get additional monitor, keyboard and mouse along with docking station. This facility is available on request only.

In case of internal transfer of employee the belonging assets (laptop with accessories, data-card) shall be transferred to the new division/ company based on the current book value. In no case employee can leave the asset and claim for a new purchase at transferred company.

The new laptop procurement will only take place if there is no laptop available in the stock.

The company reserves the right to withdraw the facility to some or all the employees at any point of time.

Recommended make and models in all grades are as below;

Annexure - I

Make Models

Dell Latitude, Vostro, XPS

Lenevo X, R and T series

HP Comparable as Dell or Lenovo model

SONY Vaio Comparable as Dell or Lenovo model

The below are the minimum recommended configuration for all Laptops

Specifications Recommended (as on April-2010)

Processor (CPU) Intel Core-2 Duo 2.6 GHz / Intel Core i3 2.1 GHz

Pre-Installed Memory (RAM) 2-3 GB DDR2/ DDR3 SDRAM

Hard Disk Drive 250 GB to 300 GB 5400 rpm

Screen Display Size 13” to 15” CSV Screen

Optical Disk Drive (DVD) DVD W/R Dual Layer capabilities

Network 100/1000 MB and Wi-Fi Enabled

Battery Backup Up to 4 hours of use

Operating System (OS) Windows-7 or Windows –XP Pro

Warranty 3-4 Year Comprehensive on-site

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Training & Development

Philosophy

“Building a High-Performance Organization by enhancing Leadership-Capacity and creating a Value-Based Culture”

Purpose & Objective

Lanco Group believes that its employees are the most valuable resource and will invest significantly money, time and attention on Training & Self Development through a structured & planned approach to enable employees to deliver high performance within a changing context.

Build a unique Lanco Culture – the way of living at Lanco – through continuous development of ownership to LANCO Mission, Vision and Values.

Employees have the knowledge & skills to perform in their jobs effectively now & in the future.

Enable & encourage employees to work to their full potential to support the organization.

Support employees in a time of External and Internal Change.

Develop Leadership at all levels.

Applicability

This Policy is applicable to the employees across the Group including Advisors, Consultants, Trainees and Expatriates.

This Policy comes into force effective 1st October, 2010.

Process

The Training and Development process will have following characteristics –

It will be based on strategic requirements of Business, Job requirements and Individual needs as per Individual Development Plans – by analyzing the Gaps of set of Competencies.

Behavioural & Leadership Competency based learning.

The training to lead an impact on the learning curve / performance.

Training analysis, design & delivery, feedback and evaluation of impact will be carried out in a systematic & methodical manner.

Inputs to be designed to meet the total individual & organization aspiration.

The emphasis will be on training in an Indian environment to allow employee to relate to.

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Process Owner

The Process Owner for the Training & Development Policy is Head – Corporate HR (ED & above) / Business HR Heads (Sr. VP & below).

Development Council

To accelerate the pace of learning (T&D) and align them to Business Strategic needs, it is necessary to integrate learning across Businesses with the help of Development Council comprising of Business HR Heads/ Corporate HR Head/ T&D Co-ordinates/MD. The frequency of meeting could be once in 6 months. The purpose is to set the tone towards Training & Development and ensure growth is taking place in the areas, where it is required, to –

Exchange of Best Practices, Trainers & Facilitator Pool Standardize the content & methodology – wherever possible Establish Training & Development Calendar Review & monitor T&D initiatives for utility & impact – course correction Develop internal resources for imparting learning

Range of Training & Development opportunities

Training

It is learning process that focuses on the acquisition of knowledge, sharpening of skills, concepts, rules or changing of attitude and behaviours to enhance the performance.

Development

The focus is on long term. It is about preparing people for future roles. It is linked to career path & succession planning.

Training Approach

Broadly, the Training & Development are categorized into 3 Types

Regular Training Programs (Driven by Corporate HR / Business HR)

Behavioural Training Business Driven Program – including Induction / Orientation Training Business (Function related) Training Technical Training / Skill Certification Programs – (as per Business Requirement) ‘E’ Learning courses through Virtual portal / campus Mandatory programs like Values & Belief, Emotional Intelligence

Development Programs (Driven by Corporate HR)

Leadership Development – Based on defined Competency grid & Individual Development Plans (IDP) for ED & above cadre of employees

First Time Leaders Program – For employees promoted to General Manager position / Joining at GM level.

Management Trainee (MT) / Graduate Engineer Trainee (GET) Programs Next General Programs – for the family members Staff Development Program up to Sr. Dy. General Manager cadre of employees

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Other Programs (Driven by Business HR / Corporate HR)

Team Building Program for various functional teams (As per Business Need) Yoga/Meditation/Spiritual/Art of Living programs (As per individual/group Need)

Participation Process

Regular Program

Each Member undergo a minimum of 3 days of training in a year as per training needs identified for him/her by any of the mechanism & most importantly the Business & Group needs identified in the strategic plans & annual operating plans.

Developmental Program

Participation in Development program will be based on an assessment report - IDP Any requirement arising from Corporate Plans Any criteria that Corporate HR in conjunction to CEO, Business Heads & Business

HR may decide Other Program

Based on Business requirement / needs

Approval Process

Training within India

LANCO Internal Program : With the approval of immediate Superior and HOD External Program outside LANCO : With the approval of HOD and COO

Training outside India

Seminar/Conference/Exhibition : With the approval of CEO / MD Development Program for Sr. VP & below : Business HR Head, COO and CEO / MD Development program for ED & above : Corp. HR Head and CEO / MD

Guidelines:

Development program must be part of Individual Development Plan The avenue/exposure shall not have available in India for such recommended

training The outside country exposure will be given once in two year time frame Deviation from the policy has to be approved by MD

Training Calendar

Corporate HR Head / Business HR Heads shall be responsible to draw out Training & Development Calendar for the Group & Business Units on yearly basis from October – September time frame.

Resources, Budgets & Cost

Corporate HR Head / Business HR Heads develop a training budget every financial year. The activity will be carried out cost effectively within its approved budget limits.

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Documentation for Audit

Training MIS

Faculty data base

Training Need Identification Form

Attendance Sheet

Feedback Form

Training Record Pass Book for each employee

Copy of Program Proposals, Quotes/Invoices

Performance Management System

Guidelines for Performance Appraisal - 2010-11

Each and every Appraiser needs to be honest, sincere and fair in carrying out the Appraisal of Performance of the employee. This is the essence of an Effective Appraisal.

The Appraisal must be done through a process of Mutual Discussion with the Appraisee.

For every employee in the cadre of GM & above, the informal structured performance review shall be carried out on Quarterly Basis, focusing more on Competencies and Behavior.

The Annual Performance Appraisal Format for 2010-11 consists of 5 Sections as mentioned below:

Section I : Performance – Key Result Areas (KRAs) 70 Marks

Section II : Potential – Competencies 20 Marks Section III : Behaviour – Group Core Values 10 Marks

Section IV : Training & Developmental Needs

Section V : Notes on Discussion between Appraisee & Appraiser, Appraiser & Reviewer and 3 Important Areas of Improvement for the employee.

The applicability of Section I, II & III as per Cadres is detailed below:

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Section – I Section – II Section – III

CEO and

Direct Reportee

to Top Mgt

Appraisal/Assessment will be done by Chairman, VC and MD

based on KRAs set at the year beginning

Based on ‘LEO’ Competencies

based on ‘Do Not’s mentioned for each of the Group Core Values in our MVV Pocket Book

COO

Appraisal/Assessment will be done by CEO and any two of Chairman, VC, MD

based on KRAs set at the year beginning

Based on ‘LEO’ Competencies

based on ‘Do Not’s mentioned for each of the Group Core Values in our MVV Pocket Book

Directorto ED

Appraisal/Assessment will be done by CEO and two other persons at least one level higher than the appraisee’s cadre, with whom most interaction happens at work (one person must be the direct reporting authority among these three)

based on KRAs set at the year beginning

Based on ‘LEO’ Competencies

based on ‘Do Not’s mentioned for each of the Group Core Values in our MVV Pocket Book

Sr. VP to GM

Appraisal/Assessment will be done by Appraiser, Reviewer and one more person at least one level higher than the appraisee’s cadre, with whom most interaction happens at work

based on KRAs set at the year beginning

Based on ‘LEO’ Competencies

based on ‘Do Not’s mentioned for each of the Group Core Values in our MVV Pocket Book

Sr.DGM & Below

Appraisal/Assessment will be done by Appraiser and Reviewer

based on KRAs set at the year beginning

based on the Role Competency Dictionary - Roles of Sectional Head, Team Leader and Team Member - as was done in the previous year

based on ‘Do Not’s mentioned for each of the Group Core Values in our MVV Pocket Book

Section IV, V are common for all the cadres.

For GM & above cadre –

Where the appraisee reports directly to the CEO/Business Unit Head and no other persons are

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available at least one level higher than the appraisee’s cadre with whom most interaction happens at work in the concerned Business Unit/Division, in such case the Appraisal/Assessment will be done by CEO and any two of Chairman, VC, MD.

In respect of HR / Finance function, the Corporate Functional Head must be one among the three member assessment panel.

Appraisal/Assessment shall be carried out as a panel with all members together.

The panel members of each appraisee shall be formulated by the HR of concerned Business Unit/Division in consultation with the appraisee and approved by the CEO/Business Unit Head.

On a 1–10 scale, in case of employees whose average score on Group Core Values is;

< 7 : He/she shall not be considered for Increment / Promotion

< 6 : Necessary steps to be taken for separation of the employee Overall performance score is the sum of scores obtained in each of the Sections I, II and III.

The Rating Scale for the performance year 2010-11 would be as mentioned below:

RATING OUTSTANDING EXCELLENT GOOD SATISFACTORY POOR

SCORE 86 – 100 76 – 85 66 – 75 51 - 65 < 51

Any employee whose performance rating is ‘POOR’ for 2 consecutive years shall be separated from the services of the Company.

All employees on rolls of the company as on 31st December, 2010 will be covered under the Performance Year 2010-11.

All employees who have joined the services of the company on or after 1st January, 2011 will not be covered in Performance Year 2010-11. However, they will be covered in next Performance year i.e 2011-12.

The performance appraisal process has to be completed for all employees by the 30th April, 2011.

PMS Process Cycle

I. Annual Business Plan for next FY –

Activity Timelines

Business Planning at Business Unit Level To be completed by October

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First Presentation of Business Plan of BUs to Corporate To be completed by November

Business Plan Approval by Corporate To be completed by December

Presentation & Approval of Corporate Business Plan

To be completed by January

II. KRA Fixation & Target Setting for next FY –

Activity TimelinesFor CEOs & Direct Reports to Top Management To be completed by 1st week of February

For COO to ED To be completed by 2nd week of February

For Sr. VP to AGM To be completed by 3rd week of February

For Sr. Manager & below To be completed by 4th week of February

III. Performance Review and Appraisal for previous FY –

Activity TimelinesFor CEO & Direct Reportee to Top Management

To be completed by 30th of AprilFor COO – EDFor Sr. VP to AGM For Sr. Manager & below

IV. Moderation of Appraisals for previous FY –

Activity TimelinesModeration of all the appraisals will be done by the CEOs for their respective Business Units /Divisions

To be completed by 1st week of May

Overall moderation of the appraisals across the group will be done by the Corporate

To be completed before end of May

V. Increments, Incentives and Promotions

Activity TimelinesCEO Meet to finalize the guidelines on Increments, Incentives and Promotions

By end May every year

Disbursement of Incentives & Increments to the employees

Along with the Salary for the month of June

Disbursement of Incentives & Increments to the Directors who are on Board

Along with the Salary for the month of July

RETENTION BONUS SCHEME

Objectives

To retain employees and align their commitment to the organization's growth.

To recognize and reward employee's long term association with the

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organization.

To motivate employees to accelerate their performance and potential.

Scope

This scheme of "Retention Bonus" shall be applicable to the eligible employees in the cadre of AGM & above across the Group.

Types of Retention Bonus

Retention Bonus to New Recruits in the cadre of AGM & above and existing employees promoted to AGM cadre

The employees joined in the cadre of AGM & above, on or after 16 th

August, 2010 are entitled for Retention Bonus.

This is also applicable to the existing employees, who would be promoted to AGM cadre.

This Retention Bonus would be paid @ 50% of the employee's Annual Base Compensation.

Retention Bonus will be disbursed in 5 installments @ 10%, 15%, 20%, 25% & 30% of the Bonus Amount at the end of 1st, 2nd, 3rd, 4th & 5th year respectively, from the date of Joining.

Annual Performance Linked Retention Bonus

The Performance Linked Retention Bonus will be paid to the eligible employees in the cadre of AGM & above each year against each Appraisal Rating for different cadres as a percentage of Annual Base Compensation (ABC).

The Performance Linked Retention Bonus, which would be paid for different cadres, each year, is given below:

CEO & above - Up to a maximum of 75% on ABC

COO to ED - Up to a maximum of 37.5% on ABC

Sr. VP &. VP - Up to a maximum of 18% on ABC

Sr. GM to AGM - Up to a maximum of 15% on ABC

The above percentage of Retention Bonus would vary based on the individual performance appraisal rating, each year, which would be communicated separately, from time to time.

No Retention Bonus will be given to the employees whose average score is < 7 on Group Core Values.

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This Performance Linked Retention Bonus amount of each year will be disbursed in 5 installments @ 10%, 15%, 20%, 25% & 30% of the Bonus Amount at the end of 1st, 2nd, 3rd, 4th & 5th year respectively from the date of declaration.

This will be applicable to the employees, from the performance year 2010-11 onwards.

Employees who have joined between 1st April and 31st December will be eligible for Retention Bonus on pro rata basis, based on no. of days of service put in by the employee as on 31st March of that performance year.

Employees, who have joined on or after 1st January will not be entitled for Retention Bonus of that performance year.

Employees, who have joined the Company between 1st January and 31st

March and not entitled for Retention Bonus for this period during last performance year, shall be eligible for Retention Bonus on pro-rata basis considering the service during this period also.

Retention Bonus will not be paid for days of Loss of Pay.

Consultants and Contractual Employees will not be entitled for Retention Bonus

Other General Guidelines

Disbursement of Retention Bonus will be through Cheque/Credit to the Salary Account of the employee, along with the monthly salary, at the end of the month, in which he/she becomes eligible for the payment of Retention Bonus.

Disbursement of Retention Bonus will be subject to deduction of tax.

Retention Bonus will be paid only to the employees, who are on the rolls of Company as on the date of disbursement, except in case of the employees separated due to retirement on superannuation.

Though, employees separated due to retirement on superannuation, the Bonus payable over a period of 5 years shall be paid, as eligible otherwise.

In case of employees transferred from one Company to another Company within the Group, retention bonus will be paid by the Company, where he/she is serving as on the date of disbursement.

Employees, who are on long leave as on the date of disbursement, will be entitled for release of retention bonus, as eligible otherwise.

Employees who have been terminated or resigned and whose resignation has been accepted by the Management as on the date of disbursement, will not be entitled for release of retention bonus, even if eligible otherwise.

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In the event of death of the employee while in employment, the entire eligible Bonus payable over a period of 5 years shall be paid to the Nominee of the deceased employee, immediately, along with the Final Settlement.

In the event of the termination of the employee's employment with the Company or Group, as a result of total or permanent incapacity (i.e. incapacity to engage in work as a result of sickness, mental disability or otherwise or by reason of accident), the entire eligible Bonus payable over a period of 5 years shall be paid to the disabled employee, immediately, along with the Final Settlement.

The Company reserves the right to review/modify or withdraw this scheme, at any point of time, at its own discretion.

All the companies across the group must strictly adhere to this policy without any deviation.

ANNUAL PERFORMANCE INCENTIVE

Objective To recognize and reward the employees for their performance.

To motivate employees to enhance their contribution and performance.

Scope

This Performance Incentive Scheme shall be applicable to all the eligible employees across the Group, based on their performance, from the performance year 2010-11 onwards.

Policy & Procedure

The Performance Incentive will be paid to all the eligible employees across the cadre each year against each Appraisal Rating for different cadres as a percentage of Annual Base Compensation (ABC).

The Performance Incentive, which would be paid for different cadres, each year, is given below:

CEO & above - Up to a maximum of 25% on ABC

COO to ED - Up to a maximum of 12.5% on ABC

Sr. VP & VP- Up to a maximum of 12% on ABC

Sr. GM & below - Up to a maximum of 15% on ABC

The above percentage of Incentive would vary based on the Individual performance appraisal rating, each year, which would be communicated separately, from time to time.

No Incentive will be given to the employees whose average score is < 7 on Group Core Values.

Incentive will be paid only to the employees who are on the rolls of Company as on the date of disbursement.

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Employees who have joined between 1st April and 31st December will be paid Incentive on pro rata basis, based on no. of days of service put in by the employee as on 31st March of that performance year.

Employees, who have joined on or after 1st January will not be entitled for Incentive of that performance year.

Employees, who have joined the Company between 1st January and 31st

March and not entitled for Incentive for this period during last performance year, shall be eligible for Incentive on pro-rata basis considering the service during this period also.

In case of employees transferred from one Company to another Company within the Group, Incentive will be paid by the Company, where he/she is serving as on the date of disbursement.

Disbursement of Incentive will be subject to deduction of tax from the employee.

Employees who have resigned and whose resignation has been accepted by the Management as on the date of disbursement, will not be entitled for release of Incentive, even if eligible otherwise.

Employees separated due to retirement on superannuation, as on the date of disbursement, will not be entitled for release of Incentive, even if eligible otherwise.

Trainees and Consultants will not be entitled for Incentive.

Incentive will not be paid for days of Loss of Pay (LOP).

Employees drawing an Annual Base Compensation of Rs.2,40,000 /- and below will be paid Incentive as under :

For employees joined between 1st April and 31st December of that performance year, Incentive up to an amount of Rs.3,500/- will be paid as Bonus (@8.33% on Annual Basic Pay) and Incentive in excess of above, if any, will be paid as Ex-gratia.

For employees joined between 1st January and 31st March of that performance year, up to an amount of Rs.3,500/- will be paid as Bonus @ 8.33% on Annual Basic Pay.

For Trainees joined between 1st April and 31st March of that

performance year, up to an amount of Rs.3,500/- will be paid as Bonus @ 8.33% on Annual Basic Pay.

The above Incentive / Bonus will be paid on pro rata basis, based on no. of days of service put in by the employee as on 31st March of that performance year.

The Company reserves the right to review/modify or withdraw this scheme, at any point of time, at its own discretion.

Innovation Awards

The key purpose of this Policy is to inspire and encourage more and more employees to endeavor to participate and come up with innovations at workplace, developing a Culture of Innovation resulting in Lanco Group becoming an Innovative Organization.

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The general perception is that innovation is something high on a pedestal and only for the extraordinary people. To change this perception to, innovation as a commonplace thing within the reach of every employee, the management has decided to reward any application for the Innovation Award which substantiates a saving/benefit to the Organization, at the Company level.

This policy is applicable to the employees of all Companies in the Group in the Cadres of Sr. Dy. General Manager and below in all functions/departments [employees in the cadres of General Manager and above are not eligible]

This policy is applicable to any innovation made during the stipulated period, either by individual or by a group of employees. This innovative idea shall contribute to the development of new process, procedure, technology, document management system, etc., which reflects in terms of improvement in quality, performance and productivity, resulting in a saving/benefit (in monetary terms) to the Company.

The innovation shall be measurable on the following parameters: Cost, Time, Process, Technology, Quality, Procedure, Productivity, Output, Material, Machinery, Manpower etc. The committees which evaluate the nominations shall take into account all the above aspects while assessing and selecting the best.

The Corporate HR will initiate, coordinate and facilitate the smooth implementation of the policy with the Companies of the Group.

Innovation period will be from 1st January to 31st December of every year. Rewards/Awards will be decided by the respective committees at the Company level and the Group level. The Company level evaluation should be completed in the first week of January every year, and for the Group level it shall be evaluated and completed during the last week of January every year for the preceding year.

Employees shall give their Applications to their HR at the Company in the Application Format given at Annexure -1 along with supporting documents duly signed by their HoD. The Applications received by the last date will be submitted by the respective HR to the Company level Committee for evaluation and assessment.

The Company level Committee comprising of the following members shall evaluate the applications received at Company level during the specified period of time:

(i) CEO or SBU Head of respective business unit(ii) Three Members, not below the Cadre of General Manager (preferably one from

Head HR and one from Head Finance)

The committee shall assess and evaluate all the Applications received.

Each one of the applications which substantiates a saving/benefit to the Company shall be given a cash award. This cash award is with a view to motivate employees to come up with more and more innovations. The saving/benefit accruing to the Company as a result of the innovation is to be confirmed by the Company level Committee.

Employees whose innovation results in a saving/benefit to the Company [in monetary terms] will be given a cash reward, at the Company Level, as per the table given below:

Saving/Benefit to the CompanyCash Reward

(%age on saving/benefit to the Company)

Up to Rs.1.00 Crore 2 %

In excess of Rs.1.00 Crore to Rs.5.00 Crores 1.5 %

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In excess of Rs.5.00 Crores 1 %

However, the total cash award is limited to a maximum amount of Rs.10.00 lakhs.

The Committee will then select the top three Applications received based on their innovation/creativity, whose innovation results in a maximum saving/benefit to the Company and announce the same to the employees, at Company Level. The top one application is to be forwarded by the respective Company’s HR to the Corporate HR along with the list of participants rewarded at Company Level.

The Group level committee comprising of the following shall review the applications received from each Company:

(i) Vice Chairman (ii) Managing Director (iii) Chief Financial Officer(iv) Head Corporate HR

The Group level committee will assess and evaluate the Applications on the basis of contribution to the Organizational benefit in terms of Performance, Productivity and Profitability as a result of the innovation/creativity. The Committee will select three of the Applications for Awards as Winner, 1st Runner Up and 2nd Runner Up.

Committee members shall automatically not be eligible for participation.

Innovations made during a calendar year shall be eligible for that calendar year.

The Group Winners shall be rewarded with cash incentives as shown below:

Winner 1st Runner Up 2nd Runner Up

Rs. 10,00,000 Rs. 8,00,000 Rs. 6,00,000

In case of Innovation Applications submitted by a group of employees, the cash reward/incentive declared at Company or Group level, would be paid by dividing the same equally to the group of employees.

Successful winners at the Group level will be declared and felicitated with cash award along with a certificate of appreciation on the ‘LANCO DAY’.

Payment of Gratuity

Gratuity shall be payable as per the provisions of "The Payment of Gratuity Act 1972", In accordance with the section 4(5) of the said Act, the Management has decided to increase the maximum amount of Gratuity payable to Rs, 15,00,000/- (Rupees Fifteen Lakhs only) instead of maximum amount of Gratuity payable of Rs. 3,50,000/- (Rupees Three Lakhs Fifty Thousand only) as per the section 4(3) of the said Act.

Gratuity shall be payable to employee on separation of his/her employment from the Company, after he/she has rendered continuous service for a period not less than 5 (Five) years.

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The separation of employee's services from the Company can be on account of his/her resignation or retirement, superannuation, death / disablement due to accident / ill health / incapacitation.In the event of death/ disablement of an employee whilst in service, the continuous service period of 5 years is not applicable.

All other provisions of the said Act are applicable.

Applicability:

This Policy on Payment of Gratuity is applicable to all the employees of all the Lanco Group Companies.

The period of five years continuous service is to be taken into account even if the employee works in more than one Group Company during the period of five years without any break of service.

Method of Computation:

Gratuity shall accrue to the employee at the rate of 15 days wages for every completed year of service or part thereof in excess of six months, as if the month comprises of 26 days at the last drawn wages.

Wages shall mean the Basic Pay of the employee (i.e. 50% of Base Compensation) (Base Compensation = CTC - Location Allowance).

Formula:

(Basic) X 15/26 x No. of eligible years of service

Employee Referral Scheme

Any employee of the Group may refer eligible candidates for vacant job positions notified from time to time and which will also be posted on our website.

Employees in the cadre of GM & above in all functions and all employees in HR Department, across the Group, will not be eligible for financial rewards under the Scheme.

All employee referrals should be mailed in prescribed Word format to Head – Recruitment of respective Business Units with a copy to resumes@lancogroup.com. Applications for the job position will be initially screened by HR Department along with user department and candidates will be subjected to the selection process. The employee who has referred the candidate will not form a part of screening and selection process.

In case the referred candidate is selected, the employee who has referred him or her will be eligible for the incentive, depending on the position for which the referred candidate is appointed as per the existing Company’s policy.

All incentive payments are subjected to Statutory Tax Deduction.

Incentive amount will be paid to the employee immediately after the candidate completing 180 days of service in the Organization.

In the event of candidate leaving the organization within 180 days of joining, the employee will not be eligible for incentive.

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Conduct, Discipline & Appeal Rules

1.0 Short Title and Commencement:

These rules may be called LANCO GROUP Conduct, Discipline and Appeal Rules.

They shall come into force w.e.f. September 1, 2004

2.0 Application:

These rules shall apply to all employees of the various Companies in the LANCO Group excluding those covered by the Certified Standing Orders of the respective Companies.

3.0 Definition :

In these rules, unless the context otherwise requires:-

"Appellate Authority" means the authority specified in the Schedule appended to these Rules.

"Board" means the Board of Directors of the concerned Company.

"Company" means the respective Company in the LANCO Group and includes its subsidiaries, either existing or to be set up.

"Disciplinary Authority" means the authority specified in the Schedule appended to these Rules empowered by the Chairman of the LANCO Group to take disciplinary action under these Rules.

"Employee" means.-

i) All permanent employees on the rolls of the respective Company, including those on probation or deputation to other Companies

ii) Persons on deputation to the Company from other companies.

“Family" in relation to an employee includes.-.

(i) spouse of the employee, whether residing with him or not but does not include wife or husband, as the case may be, separated from the employee by a decree or order of a competent court;

(ii) son or daughter or step-son or step-daughter of the employee who is wholly dependent on him;

(iii) any other person related, whether by blood or marriage, to the employee or to such employee's spouse and wholly dependent on such employee.

"Head of Department" means a person holding overall functional and administrative charge of a department in the respective Companies.

"Managing Director" means a person appointed as the Managing Director of the Company concerned under the Companies Act, 1956.

'Premises' means buildings at Corporate Head Office, buildings in manufacturing units including processing plants and workshops, other buildings, liaison offices, ancillary offices and other administrative buildings, branches, sales and service centres, guest-houses, godowns and ware- houses where ever situated, whether in India or abroad, as well as vacant spaces located within the respective factory/factories and shall include the estate (including leased accommodation, green belts, agricultural/horticultural

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holdings,. railway sidings, installations etc.) and vehicles of the Company or the ones hired for commutation of the employees.

"Chief Executive Officer (CEO)" means the employee (either a CEO/Director or any other employee) holding overall administrative charge of the affairs of the Company and recognized as such by the Chairman of the LANCO Group.

Note: In these Rules the masculine shall include the feminine and the singular the plural.

4.0 General Conduct:

Every employee of the Company shall at all times:

maintain absolute integrity

maintain devotion to duty

conduct himself in a manner which will enhance the reputation of the company

conform to and abide by the provisions of the Rules and Regulations made by the Company from time to time.

Comply with and obey all lawful orders, verbal or written communicated by a superior.

Every employee of the Company holding a Supervisory position shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under his control and authority.

5.0 Misconduct :

Without prejudice to the generality of the term "misconduct", the following acts of omission and/or commission shall be treated as misconduct:-

Theft, fraud or dishonesty in connection with the business or property, including intellectual property, of the Company or of a subsidiary, or of property of another person within the premises of the Company.

Taking bribes or any illegal gratification. Furnishing false information regarding name, age, father's name, qualifications,

ability or previous service, health, dependants or any other matter germane to the employment at the time of employment or during the course of employment.

Acting in a manner prejudicial to the interests of Company

Willful insubordination or instigation thereof, or disobedience or instigation thereof, whether or not in combination with others, of any lawful and reasonable order of a superior

Threatening, abusing or assaulting any employee within the premises while on duty or otherwise and any such action at any other place if such action has any connection with the affairs of the Company.

Any act resulting in humiliating modesty of female employee.

Absence without leave or over-staying the sanctioned leave for more than four consecutive days without sufficient grounds or proper or satisfactory explanation.

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Habitual late attendance or habitual early departure or irregular attendance or willful absence from duty.

Proxy registering of attendance or abetting the act or registering the attendance of another employee.

Neglect of work or negligence in the performance of duty including malingering or slowing down of work or willful interference in the work of another employee or employees.

Willful damage or sabotage to any work in process or property of the Company or sabotage of the interests of the Company or commission of any irresponsible act or acts resulting in damage to any work in process or property of the Company or the interests of the Company.

Interference or tampering with any safety devices installed or violating the safety or environmental regulations in and around the premises of the Company.

Habitual drunkenness or riotous or disorderly or indecent behaviour in the premises of the Company or outside such premises where such behaviour is related to or connected with the employment.

Habitual gambling within the premises of the Company.

Smoking within the premises of the establishment where it is prohibited.

Habitual soliciting or collection without the permission of the Head of the Department of any money within the Premises of the Company.

Commission of any act, which amounts to a criminal offence involving moral turpitude.

Habitual absence from the employee's appointed place of work without permission or sufficient cause.

Purchasing/selling properties, machinery, stores etc., from/to the Company by the employee or his family member without express permission in writing from the Managing Director/CEO.

Commission of any acts subversive of discipline or good behaviour on the Premises or in the course of duty or outside the Company's Premises, if it directly affects the discipline or the administration of the Company or if it is directly linked with the general relationship of the Company and the employee or has a material bearing on the smooth and efficient working of the Company.

Abatement of or attempt at abatement of any act, which amounts to misconduct.

Misuse of any cash advance or non-compliance with the provisions of the rules for grant of any cash advance.

Participation and/or inciting others to participate in strikes, gheraos, go-slow and similar other agitational activities in contravention of the provisions of any law, or any rule having the force of law, or abetting, inciting or acting in furtherance thereof.

Unauthorized custody and/or use of the Company's equipment, tools, accommodation, office, guesthouses, godowns, land or any other property/premises of the Company.

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Falsification of Company's records, manual or electronic, impersonation or forgery.

Making representations to persons or bodies outside the Company whether official or otherwise on matters connected with the affairs of the Company or personal grievances against the Management.

Deliberately making false statements and allegations before a superior knowing it to be false.

Refusal to accept and acknowledge charge sheets, orders or any other communication addressed to an employee.

Unauthorized disclosure of any official confidential information pertaining to Company's operations or patented property/rights/intellectual property.

Engaging in private or personal work within the Premises of the Company.

Unauthorized possession of any lethal weapon within the Premises of the Company.

Organizing, holding, attending or taking part in a meeting inside the Premises of the Company without the previous permission of the Management in writing or accept in accordance with the provisions of any law for the time being in force.

Refusal to work on another job or another machine.

Wrongful restraint or wrongful confinement of any officer of the Company, surrounding or forcibly detaining officers and other employees of the Company in the Premises of the Company or outside.

Habitual quarrelling or using foul language within the Premises of the Company.

Allowing unauthorized persons to operate Company's vehicles or equipment.

Violation of any provision of these rules or any other habitual act or omission, which the Company considers as misconduct.

Note: The above instances of misconduct are illustrative in nature, and not exhaustive.

6.0 (a) Taking Part in Elections:

No employee shall stand for election as a member of a local authority or a legislative body without the written permission of the Managing Director/CEO.

(b) Taking Part in Demonstrations:

No employee of the Company shall engage himself or participate in any demonstration, which involves incitement to an offence.

7.0 Connection with Press, Television, Cable Network, Internet or Radio:

No employee of the Company shall, except with the previous written sanction of the Managing Director/CEO own wholly or in part, or conduct or participate in the editing or management of, any newspaper, television channel, cable network, website or other periodical publication.

No employee of the Company shall, except with the previous sanction of the Managing Director/CEO, or in the bonafide discharge of his duties, participate in a

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radio/television/cable network broadcast or teleconference or write or publish a book or contribute an article or write a letter relating to Company's policy either in his own name or anonymously, pseudonymously or in the name of any other person to a newspaper or periodical. Provided that no such sanction shall be required if the broadcast or contribution/publication is of a purely literary, artistic or scientific character and not related to the Company or its products.

8.0 Criticism of the Company :

No employee shall, in any radio/ television / cable network / teleconferencing / website/web page broadcast or in any document published under his name or under any pen-name or pseudonym or in any communication to the press, or in any public utterances, make any statement.-

Which has the effect of adverse criticism of any policy or action of the Company, or

Which is capable of embarrassing the relations between the Company and the public.

Un authorised Communication of Information:

No employee shall, except in accordance with any general or special order of the Company or in the performance in good faith of the duties assigned to him, communicate, directly or indirectly any official confidential document or any part thereof or information to any person to whom he is not authorized to communicate such document or information.

9.0 Private Trade or Employment:

No employee of the Company shall, except with the previous sanction of the Managing Director/CEO, engage directly or indirectly in any trade or business or undertake any other employment.

Provided that an employee may, without such sanction, undertake honorary work of a social or charitable nature or occasional work of a literary or artistic character, subject to the condition that his official duties do not thereby suffer.

Every employee of the Company shall report to the Managing Director/CEO if any member of his family is engaged in any trade or business or owns or manages an insurance agency or commission agency having business dealings with the Company.

10.0 Insolvency and Habitual Insolvency and Habitual Indebtedness:

An employee of the Company shall avoid habitual indebtedness unless he proves that such indebtedness or insolvency is the result of circumstances beyond his control and does not proceed from extravagance or dissipation.

An employee of the Company who applies to be, or is adjudged or declared insolvent shall forthwith report the fact to the Managing Director/CEO or such other person as may be notified by the Managing Director/CEO from time to time.

11.0 Canvassing of Non-Official or Other Influence:

No employee shall bring or attempt to bring any outside influence to further his interests in respect of matters pertaining to his service in the Company.

12.0 Suspension:

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The disciplinary authority or any other authority empowered in that behalf may place an employee under suspension-

(a) Where a disciplinary proceeding against him is contemplated or is pending for a misconduct, depending on the gravity and circumstances; or

(b) Where a case against him in respect of any criminal offence is under investigation or trial.

Note: In case of (a) above, charge sheet shall be served within a period of two weeks.

Where a penalty of dismissal or discharge from service imposed upon an employee is set aside or declared or rendered void in consequence of or by a decision of a court of law and the disciplinary authority, on consideration of the circumstances of the case, decides to hold a further inquiry against him on the allegations on which the penalty of dismissal or discharge was originally imposed, the employee shall be deemed to have been placed under suspension from the date of the original order of dismissal or discharge and shall continue to remain under suspension until further orders.

The Disciplinary Authority may at any time revoke an order of suspension made under this rule.

13.0 Subsistence Allowance

An employee under suspension shall be entitled to draw subsistence allowance equal to 50 per cent of his basic pay provided the disciplinary authority is satisfied that the employee is not engaged in any other employment or business or profession or vocation.

Where the period of suspension exceeds six months, the Disciplinary Authority shall be competent to vary the amount of subsistence allowance for any period subsequent to the period of the first six months as follows:-

(a) The amount of subsistence allowance may be increased up to 75 percent of basic pay if, in the opinion of the said authority, the period of suspension has been prolonged for reasons to be recorded in writing not directly attributable to the employee under suspension:

(b) The amount of subsistence allowance may be reduced up to 25 percent of basic pay if, in the opinion of the said authority, the period of suspension has been prolonged due to the reasons to be recorded in writing, directly attributable to the employee under suspension.

14.0 Treatment of the Period of Suspension:

When the employee under suspension is reinstated, the disciplinary authority may grant to him the following pay and allowances for the period of suspension.

(a) If the employee is exonerated and not awarded any of the penalties mentioned in Rule 15.0, the full pay and allowances which he would have been entitled to if he had not been suspended, less the subsistence allowance already paid to him; and

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(b) If otherwise, such proportion of pay as the competent authority may prescribe.

In a case falling under sub-clause (a), the period of absence from duty will be treated as a period spent on duty. In case falling under sub-clause (b) it will not be treated as period spent on duty unless the disciplinary authority so directs.

15.0 Penalties

The following penalties may be imposed on an employee, as hereinafter provided, for misconduct committed by him or for any other good and sufficient reasons.

Minor Penalties:

(a) Censure;(b) Withholding of increments of pay with or without cumulative effect;(c) Recovery from pay or such other amounts as may be due to him of the

whole or part of any pecuniary loss caused to the Company by negligence or breach of orders.

Major Penalties:

(a) Reduction to a lower salary in the same grade (b) Reduction to a lower grade or post;(c) Dismissal

Note: Not granting an increment to an employee on grounds of performance shall not be construed as a penalty within the meaning of these Rules.

16.0 Procedure for Imposing Major Penalties:

No order imposing any of the major penalties specified in Rule 15.0 shall be made except after an enquiry is held in accordance with this rule.

When the Disciplinary authority comes to a conclusion that there is a prima facie case against the employee, a charge sheet may be issued specifying the details of the articles of charge.

The charge-sheeted employee shall be required to submit within five days, a written reply to the charge-sheet indicating as to whether he admits or denies any or all of the articles of charge.

If the reply to the charge-sheet received is not considered satisfactory or no such reply is received within the specified time, an enquiry may be ordered and an Enquiry Officer be appointed under these Rules. The Disciplinary Authority may also appoint a Presenting Officer to present on his behalf the case in support of the articles of charge.

The Enquiry Officer may permit the charge-sheeted employee to take the assistance of another employee of the Company, provided that such employee is not under suspension and is not a representative in more than two cases.

The Enquiry Officer after conducting the enquiry shall put up his findings to the Disciplinary Authority. After considering the findings of the Enquiry Officer, the Disciplinary Authority shall take a decision depending on the merit of the case for the quantum of punishment as specified in Rule 15.0 or exoneration and communicate the same to the employee.

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The aggrieved employee may prefer an appeal to the Appellate Authority against the decision of the Disciplinary Authority. Such appeal shall be made within a period of three months from the date of issue of the punishment order by the disciplinary authority.

17.0 Procedure for Imposing Minor Penalties:

On receipt of reply from the charge-sheeted employee against the charge- sheet issued under these rules, the disciplinary authority based on the merits of the case, shall take appropriate action to exonerate the employee if found not guilty or impose any of the minor penalties specified in Rule 15.0 as deemed fit. This will be based on the explanation and evidence made available to the Disciplinary Authority.

18.0 Common Proceedings:

Where two or more employees are concerned in a case, the Disciplinary Authority may make an order directing that disciplinary proceeding against all of them may be taken in a common proceeding.

19.0 Special Procedure in Certain Cases:

Notwithstanding anything contained in Rule 16.0, where the Managing Director/CEO is satisfied that in the interest of the security of the Company, it is not expedient to hold any inquiry in the manner provided in these rules, the Disciplinary Authority may impose the penalties specified in Rule 15.0.

20.0 Service of Orders, Notices, etc:

Every order, notice or other communication made or issued under these rules shall be served in person on the employee concerned or communicated to him by registered post/ under certificate of posting at his last known address. In case the employee is absent from duty or refuses to accept and acknowledge such communication, the same shall be sent by registered post/under certificate of posting and a copy thereof shall be placed on the notice board or pasted on his house. Upon doing so, such communication shall be deemed to have been served on the employee concerned. It shall be the responsibility of every employee to keep the HR Department informed of his address from time to time.

21.0 Retirement

On Medical Grounds :

Any employee may, at the discretion of the Company, be examined by the Company's Medical Officer, at any time during the course of his employment with the Company and /or by any other qualified Medical Practitioner approved by the Company, to find the employee's fitness or otherwise for continuance at his employment in the Company. If the Medical Officer finds the employee unfit for continued employment, he shall be retired on Medical Grounds.

On attaining the age of Superannuation :

(a) The age of superannuation shall be 60 years. An employee shall retire from Company's service on the last day of the month on completion of 60 years of age.

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(b) An employee may at any time after completing the age of 50 years voluntarily retire by giving one month's notice in writing.

Determination of Employee's Age

In determining the age of the employee, his SSLC certificate only will be admitted as proof of age. Where the employee is less than SSLC or where the SSLC certificate cannot be produced due to justified reasons supported by necessary proof thereof, decision of the Company's Medical Officer will be final. Once the date of birth is determined at the time of entry into the service, the same will not be altered for any reason whatsoever and shall be final and binding for all purposes during the employee's service in the Company and also for the purpose of retirement, notwithstanding any subsequent request for alteration or direction, declaration, undertaking whatsoever, to the contrary.

22.0 Voluntary Abandonment of Service

If an employee absents without leave or authorized permission for more than 7 days or remains absent for more than 7 days beyond the period of leave granted, he shall be deemed as having voluntarily left and abandoned the Company's service from the date of commencement of such unauthorized absence.

23.0 Savings:

Nothing in these rules shall be construed as depriving any person to whom these rules apply of any right of appeal, which had accrued to him under the rules, which have been superseded by these rules.

An appeal pending at the commencement of these rules against an order made before the commencement of these rules shall be considered and orders there on shall be made, in accordance with these rules.

The proceedings pending at the commencement of the rules shall be continued and disposed as far as may be, in accordance with the provisions of these rules, as if such proceedings are under these rules.

Any misconduct, etc., committed prior to the issue of these rules which was a misconduct under the superseded rules shall be deemed to be a misconduct under these rules.

Any other authority to which it is subordinate may exercise the powers vested in any authority under these rules.

24.0 Removal of Doubts:

Where doubts arise as to interpretation of any of these rules, the matter shall be referred to the Managing Director/CEO for final decision.

25.0 Amendments:

These rules may be amended, modified from time to time, and all such amendments, modifications or additions shall take effect from the date stated therein.

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SCHEDULE

Disciplinary/Appellate Authority

LAYER/ LEVEL DISCIPLINARY AUTHORITY APPELLATE AUTHORITY

Workmen, Clerical and Supervisory Staff

Head of the Department with the concurrence of Managing

Director/CEO

Managing Director/CEO

Junior Management/Junior Management/ Middle Management/Middle Management/ Senior ManagementSenior Management

Managing Director/CEO Chairman of the LANCO Group

Top management Chairman of the LANCO Group Board of Directors

Dress Code

Objective:

The objective of LANCO GROUP in establishing a dress code policy at work is to enableemployees to project a professional, business-like image while experiencing smart, comfortable and relaxed sense of dressing. Decent Attire, grooming, and personal cleanliness standards contributes to the morale of all employees and affects the business image the company presents to customers and visitors.

The intent of this policy is to communicate the expectations of the organization on the personal appearance of its employees.

Scope:

This policy shall apply to all the employees working across the Group.

Policy & Procedure :

When representing LANCO. the employees are expected to present a clean, neat and presentable appearance.

They should dress and groom themselves according to the requirements of the position and accepted social standards. This is particularly true if the job involves dealing with customers or visitors in person.

While LANCO encourages business casual wear for employees who do not interactwith customers, the primary objective is to have employees project a professional image.

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The company trusts the good judgment of employees in their choice of clothing.

The immediate superior must be consulted in case of any questions as to what constitutes appropriate appearance.

The immediate superior or department head is responsible for establishing aProfessional reasonable dress code appropriate to the job they perform.

Because all forms of clothing are not suitable at work place, the following guidelines will help determine what is appropriate / inappropriate attire to wear.

Appropriate Attire at work place

Monday to Friday

Men's Wear:

Formal shirts and Ironed Trousers

Formal Shoes

Women's Wear:

Indian Wear: Neatly Ironed Salwaar Kameez and Sari with decent blouses.

Western Wear: Trousers with buttoned format Shirts/Kurtis, Skirts should be 2 inches below the knee.

Open ended Sandals / Heels / Formal Shoes

Saturday

SMART Casual is acceptable:

Men's Wear - includes;

Trousers, Jeans, Round/Polo T Shirts, Sport Coats, Sport Shoes

Women's Wear - includes; Slacks, Skirts, Jeans, Tops, Shirts, T' Shirts, Simple Jewelry, Jackets, Sport

Shoes

Inappropriate Attire at work place

Men's Wear:

Tank tops, sweatshirts, midriff tops. Shirts/T Shirts with potentially offensivewords, terms, logos, pictures, cartoons, or slogans, tops with bare shoulders,slacks

Pants include torn jeans, sweatpants, exercise pants, shorts or BermudasFootwear includes open sandals or floaters.

Women's Wear:

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Torn Jeans, Mini-skirts, sun dresses, beach dresses, and spaghetti-strap, casual capris, dance club dresses and midriff bearing outfits.

Sexual Harassment at Workplace

Policy:

The LANCO INFRATECH LIMITED (“LITL”) (hereinafter known as “Company”) is an equal employment opportunity Company and is committed to creating a healthy working environment that enables employees to work without fear of prejudice, gender bias and sexual harassment. The Company also believes that all employees of the Company have the right to be treated with dignity. Sexual harassment at the work place or other than work place if involving employees is a grave offence and is, therefore, punishable.

The Supreme Court has also directed companies to lay down guidelines and a forum for redressal of grievances related to sexual harassment.

Applicability:

This Policy shall be applicable to LITL and all its group companies, subsidiaries and affiliates (along with their successors and assigns).

This Policy shall also be applicable to all the new group companies, subsidiaries and affiliates to be incorporated in future.

Scope:

This Policy extends to all employees of the Company and is deemed to be incorporated in the service conditions of all employees.

Sexual harassment would mean and include any of the following:

Unwelcome sexual advances, requests or demand for sexual favours, other verbal or physical conduct of a sexual nature, either explicitly or implicitly, in return for employment, promotion, examination or evaluation of a person towards any company activity.

Unwelcome sexual advances involving verbal, non-verbal, or physical conduct such as sexually coloured remarks, jokes, letters, phone calls, e-mail, gestures, showing of pornography, lurid stares, physical contact or molestation, stalking, sounds, display of pictures, signs, verbal or non-verbal communication which offends the individuals sensibilities and affect her/his performance.

Eve teasing, innuendos and taunts, physical confinement against one’s will and likely to intrude upon one’s privacy.

Act or conduct by a person in authority which creates the environment at workplace hostile or intimidating to a person belonging to the other sex.

Conduct of such an act at work place or outside in relation to an employee of the Company, or vice versa during the course of employment; and

Any unwelcome gesture by an employee having sexual overtones.

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“Employee” means any person on the rolls of the Company including those on deputation, contract, temporary, part time, training or working as consultants.

Complaint Redressal Committee:

A Complaint Redressal Committee (“Committee”) has been constituted by the Management to consider and redress complaints of Sexual Harassment. The Chairman and Members of the Committee are as follows:

Committee Members:

i) Ms. Ranjana V. Mudholkar Chairperson

ii) Mr. V. Sreenivas Member

iii) Mr. N. Sudhakara Moorthy Member

iv) Ms. P. Chandrakala Member

v) Ms. Paromita Chowdhury Member

A quorum of 3 members is required to be present for the proceedings to take place. The quorum shall include the Chairperson, at least two members, one of whom shall be a lady.

Redressal Process:

Any employee who feels and is being sexually harassed directly or indirectly may submit a complaint of the alleged incident to any member of the Committee in writing with her / his signature within ten (10) days of occurrence of incident.

The Committee will maintain a register to endorse the complaint received by it and keep the contents confidential, if it is so desired, except to use the same for discreet investigation.

The Committee will hold a meeting with the Complainant within five (5) days of the receipt of the complaint, but no later than a week in any case.

At the first meeting, the Committee members shall hear the Complainant and record her/his allegations. The Complainant can also submit any corroborative material with a documentary proof, oral or written material, etc., to substantiate her/his complaint. If the Complainant does not wish to depose personally due to embarrassment of narration of event, a lady officer for lady employees involved and a male officer for male employees, involved shall meet and record the statement.

Thereafter, the person against whom complaint is made may be called for a deposition before the Committee and an opportunity will be given to her/him to give an explanation, where after, an “Enquiry” shall be conducted and concluded.

In the event, the complaint does not fall under the purview of Sexual Harassment or the complaint does not mean an offence of Sexual Harassment, the same would be dropped after recording the reasons thereof.

In case the complaint is found to be false, the Complainant shall, if deemed fit, be liable for appropriate disciplinary action by the Management.

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Enquiry Process:

The Committee shall immediately proceed with the Enquiry and communicate the same to the Complainant and person against whom complaint is made.

The Committee shall prepare and handover the Statement of Allegation to the person against whom complaint is made and give her / him an opportunity to submit a written explanation if she / he so desires within seven (7) days of receipt of the same.

The Complainant shall be provided with a copy of the written explanation submitted by the person against whom complaint is made.

If the Complainant or the person against whom complaint is made desires any witness/es to be called, they shall communicate in writing to the Committee the names of witness/es whom they propose to call.

If the Complainant desires to tender any documents by way of evidence before the Committee, she / he shall supply original copies of such documents. Similarly, if the person against whom complaint is made desires to tender any documents in evidence before the Committee she / he shall supply original copies of such documents. Both shall affix her / his signature on the respective documents to certify these to be original copies.

The Committee shall call upon all witnesses mentioned by both the parties.

The Committee shall provide every reasonable opportunity to the Complainant and to the person against whom complaint is made, for putting forward and defending their respective case.

The Committee shall complete the “Enquiry” within reasonable period but not beyond three (3) months from the date on which the written complaint is filed by the Complainant and communicate its findings and its recommendations for action to the HR Department of the respective group company. The report of the committee shall be treated as an enquiry report on the basis of which an earring employee can be awarded appropriate punishment straightaway.

The HR Department of the respective group company will direct appropriate action in accordance with the recommendation proposed by the Committee.

The Committee shall be governed by such rules as may be framed by the Supreme Court orders or any other legislation enacted later on.

Other Points to be Considered:

The Committee may recommend to the HR Department of the respective group company the action which may include transfer, dismissal or any of the other appropriate disciplinary action.

The management shall provide all necessary assistance for the purpose of ensuring full, effective and speedy implementation of this policy.

Where sexual harassment occurs as a result of an act or omission by any third party or outsider, the Company shall take all steps necessary and reasonable to assist the affected person in terms of support and preventive action.

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The Committee shall analyze and put up report on all complaints of this nature at the end of the year for submission to HR Department of the respective group company.

In case the Committee finds the degree of offence coverable under the Indian Penal Code, then this fact shall be mentioned in its report and appropriate action shall be initiated by the Management, for making a Police Complaint.

In case the Complainant or the person against whom the complaint is filed is aggrieved by the decision / action taken by the Committee, may challenge the same before the court/ forum to which she / he is ordinarily entitled to approach to challenge any decision of the management taken against him / her in respect of any misconduct.

The name of the aggrieved employee shall not be referred to / revealed in any records of proceedings by the Committee / Company to any press / media or any other persons whilst reporting the proceedings / case.

WHISTLE BLOWER POLICY

1. Preface

a. The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior.

b. Clause 49 of the Listing Agreement between listed companies and the Stock Exchanges has been amended which is effective from December 31, 2005, inter alia, provides for a non-mandatory requirement for all listed companies to establish a mechanism called 'Whistle Blower Policy' for employees to report to the management instances of unethical behaviour, actual or suspected, fraud or violation of the company's code of conduct and ethics policy for Directors and Senior Management Personnel.

c. Accordingly, this Whistle Blower Policy ("the Policy") has been formulated with a view to provide a mechanism for Employees of the Company to approach the Chairman of the Audit Committee of the Company/ Ethics Counsellor.

2. Definitions

The definitions of some of the key terms used in this Policy are given below. Capitalized terms not defined herein shall have the meaning assigned to them under the Code.

a. "Audit Committee" means the Audit Committee constituted by the Board of Directors of the Company in accordance with Section 292A of the Companies Act, 1956 and read with Clause 49 of the Listing Agreement with the Stock Exchanges.

b. "Employee" means every employee of the Company (whether working in India or abroad), including the Directors in the employment of the Company.

c. "Code" means the Code of Conduct approved by Lanco Infratech Limited.

d. "Investigators" means those persons authorized, appointed, consulted or approached by the Chairman of the Audit Committee of the Company/ Ethics Counsellor and include the auditors of the Company and the police.

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e. "Protected Disclosure" means any communication made in good faith that discloses or demonstrates information that may evidence unethical or improper activity.

f. "Subject" means a person against or in relation to whom a Protected Disclosure has been made or evidence gathered during the course of an investigation.

g. "Whistle Blower" means an Employee making a Protected Disclosure under this Policy.

3. Scope

a. This Policy is an extension of the Code of Conduct and Ethics for Directors and Senior Management Personnel. The Whistle Blower's role is that of a reporting party with reliable information. They are not required or expected to act as investigators or finders of facts, nor would they determine the appropriate corrective or remedial action that may be warranted in a given case.

b. Whistle Blowers should not act on their own in conducting any investigative activities, nor do they have a right to participate in any investigative activities other than as requested by the Chairman of the Audit Committee of the Company/ Ethics Counsellor or the Investigators.

c. Protected Disclosure will be appropriately dealt with by the Chairman of the Audit Committee of the Company/ Ethics Counsellor, as the case may be.

4. Eligibility

All Employees of the Company are eligible to make Protected Disclosures under the Policy. The Protected Disclosures may be in relation to matters concerning the Company or any other Lanco Group Companies.

5. Disqualifications

a. While it will be ensured that genuine Whistle Blowers are accorded complete protection from any kind of unfair treatment as herein set out, any abuse of this protection will warrant disciplinary action.

b. Protection under this Policy would not mean protection from disciplinary action arising out of false or bogus allegations made by a Whistle Blower knowing it to be false or bogus or with a mala fide intention.

c. Whistle Blowers, who make any Protected Disclosures, which have been subsequently found to be mala fide or malicious or Whistle Blowers who make 3 or more Protected Disclosures, which have been subsequently found to be frivolous, baseless or reported otherwise than in good faith, will be disqualified from reporting further Protected Disclosures under this Policy.

6. Procedure

a. All Protected Disclosures concerning financial/accounting matters should be addressed to the Chairman of the Audit Committee of the Company for investigation.

b. In respect of all other Protected Disclosures, those concerning the Ethics Counsellor and employees at the levels of Vice Presidents and above should be addressed to the Chairman of the Audit Committee of the Company and those

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concerning other employees should be addressed to the Ethics Counsellor of the Company.

c. The contact details of the Chairman of the Audit Committee are as under:

Dr. P. Kotaiah, Chairman of the Audit Committee102, Pooja Pride Apartments, Plot No.75, Srinagar Colony,Hyderabad - 500 073, Andhra Pradesh, India.

The contact details of the Ethics Counsellor are as under:

Sri D. Krishna Rao, Executive Director, Group Management Affairs,Lanco Infratech Limited, Plot No.4, Software Units Layout,HITEC City, Madhapur, Hyderabad- 500 081, Andhra Pradesh, India.

a) If a protected disclosure is received by any executive of the Company other than Chairman of Audit Committee or the Ethics Counsellor, the same should be forwarded to the Company's Chairman of the Audit Committee / Ethics Counsellor for further appropriate action. Appropriate care must be taken to keep the identity of the Whistle Blower confidential.

b) Protected Disclosures should preferably be reported in writing so as to ensure a clear understanding of the issues raised and should either be typed or written in a legible handwriting in English or in the regional language of the place of employment of the Whistle Blower. Alternatively, Protected Disclosures can also be reported by e-mails to the E-mail IDs as under:

(1). Dr. P. Kotaiah, Chairman of the Audit Committee -- kotaiahp1@gmail.com(2). Sri D. Krishna Rao, Ethics Counsellor -- dkrao1948@gmail.com

The Protected disclosures will normally be documented by the Chairman of the Audit Committee / Ethics Counsellor accessing the voice mail by a written transcription of the oral report.

a) The Protected Disclosure should be forwarded under a covering letter which shall bear the identity of the Whistle Blower. The Chairman of the Audit Committee / Ethics Counsellor, as the case may be shall detach the covering letter and forward only the Protected Disclosure to the Investigators forinvestigation.

b) Protected Disclosures should be factual and not speculative or in the nature of a conclusion, and should contain as much specific information as possible to allow for proper assessment of the nature and extent of the concern.

c) For the purpose of providing protection to the Whistle Blower, the Whistle Blower should disclose his/her identity in the covering letter forwarding such Protected Disclosure.

7. Investigation

a) All Protected Disclosures reported under this Policy will be thoroughly investigated by the Chairman of the Audit Committee of the Company/ Ethics Counsellor who will investigate / oversee the investigations under the authorization of the Audit Committee.

b) The Chairman of the Audit Committee / Ethics Counsellor may at his discretion, consider involving any Investigators for the purpose of investigation.

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c) The decision to conduct an investigation taken by the Chairman of the Audit Committee / Ethics Counsellor is by itself not an accusation and is to be treated as a neutral fact-finding process. The outcome of the investigation may not support the conclusion of the Whistle Blower that an improper or unethical act was committed.

d) The identity of a Subject and the Whistle Blower will be kept confidential to the extent possible given the legitimate needs of law and the investigation.

e) Subjects will normally be informed of the allegations at the outset of a formal, investigation and have opportunities for providing their inputs during the investigation.

f) Subjects shall have a duty to co-operate with the Chairman of the Audit Committee / Ethics Counsellor or any of the Investigators during investigation to the extent that such co-operation will not compromise self-incrimination protections available under the applicable laws.

g) Subjects have a right to consult with a person or persons of their choice, other than the Ethics Counsellor / Investigators and/or members of the Audit Committee and/or the Whistle Blower. Subjects shall be free at any time to engage counsel at their own cost to represent them in the investigation proceedings. However, if the allegations against the subject are not sustainable, then the Company may see reason to reimburse such costs.

h) Subjects have a responsibility not to interfere with the investigation. Evidence shall not be withheld, destroyed or tampered with, and witnesses shall not be influenced, coached, threatened or intimidated by the Subjects.

i) Unless there are compelling reasons not to do so, Subjects will be given the opportunity to respond to material findings contained in an investigation report. No allegation of wrongdoing against a Subject shall be considered as maintainable unless there is good evidence in support of the allegation.

j) Subjects have a right to be informed of the outcome of the investigation. If allegations are not sustained, the Subject should be consulted as to whether public disclosure of the investigation results would be in the best interest of the Subject and the Company.

k) The investigation shall be completed normally within 45 days of the receipt of the Protected Disclosure.

8. Protection

a. No unfair treatment will be meted out to a Whistle Blower by virtue of his/her having reported a Protected Disclosure under this Policy. The Company, as a policy, condemns any kind of discrimination, harassment, victimization or any other unfair employment practice being adopted against Whistle Blowers. Complete protection will, therefore, be given to Whistle Blowers against any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, or the like including any direct or indirect use of authority to obstruct the Whistle Blower's right to continue to perform his duties/functions including making further Protected Disclosure. The Company will take steps to minimize difficulties, which the Whistle Blower may experience as a result of making the Protected Disclosure. Thus, if the Whistle Blower is required to give evidence in criminal or disciplinary proceedings, the Company will arrange for the Whistle Blower to receive advice about the procedure, etc.

b. A Whistle Blower may report any violation of the above clause to the Chairman of the Audit Committee, who shall investigate into the same and recommend suitable action to the management.

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c. The identity of the Whistle Blower shall be kept confidential to the extent possible and permitted under law.

d. Any other Employee assisting in the said investigation shall also be protected to the same extent as the Whistle Blower.

9. Investigators

a. Investigators are required to conduct a process towards fact-finding and analysis. Investigators shall derive their authority and access rights from the Audit Committee / Ethics Counsellor when acting within the course and scope of their investigation.

b. Technical and other resources may be drawn upon as necessary to augment the investigation. All Investigators shall be independent and unbiased both in fact and as perceived. Investigators have a duty of fairness, objectivity, thoroughness, ethical behavior, and observance of legal and professional standards.

c. Investigations will be launched only after a preliminary review by the Chairman of the Audit Committee or the Ethics Counsellor, as the case may be, which establishes that:

i. the alleged act constitutes an improper or unethical activity or conduct, and

ii. the allegation is supported by information specific enough to be investigated or in cases where the allegation is not supported by specific information, it is felt that the concerned matter is worthy of management review. Provided that such investigation should not be undertaken as an investigation of an improper or unethical activity or conduct.

10. Decision

If an investigation leads the Chairman of the Audit Committee/Ethics Counsellor to conclude that an improper or unethical act has been committed, the Chairman of the Audit Committee / Ethics Counsellor shall recommend to the management of the Company to take such disciplinary or corrective action as the Chairman of the Audit Committee / Ethics Counsellor may deem fit. It is clarified that any disciplinary or corrective action initiated against the Subject as a result of the findings of an investigation pursuant to this Policy shall adhere to the applicable personnel or staff conduct and disciplinary procedures.

11. Reporting

The Ethics Counsellor shall submit a report to the Chairman of the Audit Committee on a regular basis about all Protected Disclosures referred to him/her since the last report together with the results of investigations, if any.

12. Retention of Documents

All Protected Disclosures in writing or documented along with the results of investigation relating thereto shall be retained by the Company for a minimum period of seven years.

13. Amendment

The Company reserves its right to amend or modify this Policy in whole or in part, at any time without assigning any reason whatsoever. However, no such

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amendment or modification will be binding on the Employees unless the same is notified to the Employees in writing.

Exit Policy

Objective

Planning a smooth separation of the employee. Avoiding difficulties encountered by the employee / company during the

process of separation. Ensure proper documentation of the process of separation. Ensure timely release of terminal benefits, Ensure uniformity of practice in separation procedure Determine as to why an employee leaves the organization and how he/she felt

about his/her tenure in the Company, which also helps in identifying organizational problems that might otherwise go undetected.

Scope

All the employees of the Group are covered under this Policy.

Modes of Exit

The separation between the employee and the company may happen under any of the following circumstances.

Superannuation / Retirement Resignation Termination Voluntary Cessation / Abandonment Death while in Service

Superannuation / Retirement

The superannuation age for all employees is 60 years. The date of superannuation shall be the last day of the month, on or before which the employee completes 60 years of age.

The concerned HR of the Company/Division -

Shall provide the details of the employee retiring from the services of the Company Three months in advance to the CEO / HOD of the respective Company/Division.

In the event of the retiree being allowed for a separation in the normal course, a communication on the same shall be sent to the employee, one month before the superannuation.

Shall organize farewell to the retiree and organize for mementos and greeting cards along with the retiral benefit, to be issued at the time of farewell by the concerned HOD/CEO/Business Unit Head.

Shall initiate 'No Due Clearance' Form one week in advance to the concerned departments and obtain the necessary clearances.

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The retiree will be reimbursed, transportation of personal effects, in case of relocation to his/her native or any place of his/her choice in India, where he/she would wish to lead his/her retired life, as per the entitled grade of the retiree prior to his/her retirement, in line with the Company's Travel Policy.

On satisfactory completion of the formalities inclusive of settlement of all dues to / from the company, the employee shall be relieved from the services of the company and the relieving letter/service certificate may be issued to the employee.

Resignation

Any employee who wishes to leave the services of the Company is required to submit a written letter of resignation indicating the date on which he / she wishes to demit office. The letter should be addressed to the HOD.

If HOD feels that the decision of an employee to leave is not in his/her best interest, every effort shall be made to counsel him/her to change his/her decision.

If the HOD decides to persuade the employee to withdraw his/her resignation, he/she would be asked to reconfirm the decision in writing, within one week from the date of submission of resignation letter.

HOD will forward the resignation letter duly recommended by him/her indicating the last working day to HR department along with relevant comments for acceptance.

The minimum Notice period required for resignation shall be as per the terms of appointment as modified from time to time issued to the employee. In the event of the actual notice period falling short of the required notice period, the CEO/Business Unit Head of the concerned company may at his discretion -

Advise the employee to serve the required notice period. Advise the employee to pay equivalent amount of Base Compensation in

lieu there of Adjust the short fall from out of the available leave (EL/SL) at credit Waive-off the short fall in notice period in exceptional cases

After accepting employee's resignation, in case of GM & above, the HR will initiate 'No Due Clearance' process in the prescribed format to all the concerned departments for confirmation of no dues from the employee who has resigned. In case of Sr.DGM & below, the person resigned shall obtain the 'No Due Clearance' from all the concerned departments.

On receipt of the 'No Due Clearance' form, all the concerned departments willverify their records for assets/loans/advances issued to the employee and willascertain the amount to be recovered from the employee, if any, and willmention the amount on the form. The form will then be sent to HRdepartment, for computation of final settlement.

On satisfactory completion of the formalities inclusive of settlement of all dues to/ from the company, the employee shall be relieved from the services of the company and the relieving letter/service certificate shall be issued to the employee after carrying out the Exit Interview.

Termination

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The Management may terminate the services of any of its employee, as perthe terms and conditions of the Letter of Appointment or any modificationthereof and in terms of the HR Policy on Code of Conduct, as may beamended from time to time.

Termination for reasons other than misconduct:

Involvement in activities resulting in punishment or prosecution as perIndian criminal procedure code under due process of law of the country.

Employee(s) compounding with creditors and or failing to dischargefinancial commitments resulting in being declared insolvent by acompetent court.

Employee suffering from mental instability, chronic and acute diseasesduly supported by a report from the company's medical advisor/competent medical practitioner, declaring him incapable of discharginghis / her duties and responsibilities to the Company.

Notice of termination:

The company shall give the required notice, before relieving theemployee from service or shall pay equivalent Salary (BaseCompensation) in lieu thereof for the short fall, if any, in the noticeperiod.

HR department shall initiate the ‘No Due Clearance' process for all cadres ofemployees, in this case.

On receipt of the 'No Due Clearance' form, all the concerned departments willverify their records for assets/loans/advances issued to the employee and willascertain the amount to be recovered from the employee, if any, and willmention the amount on the form. The form will then be sent to HRdepartment, for computation of final settlement.

Voluntary Cessation / Abandonment :

If an employee remains absent beyond the period of leave originally grantedor subsequently extended, he/she shall lose lien on his appointment unlesshe/she -

returns within eight days of the expiry of the leave and explains to the satisfaction of his/her Reporting Authority / Head-HR, his

inability to return before the expiry of his/her leave.

An employee who absents himself/herself for eight consecutive working dayswithout leave or permission and fails to offer satisfactory explanation for suchabsence within 3 period of seven days thereafter shall be deemed to have leftor abandoned the service in the establishment without notice, therebyautomatically terminating his/her contract of service.

HR department shall initiate the ‘No Due Clearance' process, for all cadres ofemployees, in this case.

On receipt of the ‘No Due Clearance' form, all the concerned departments wiltverify their records for assets/loans/advances issued to the employee and wiltascertain the amount to be recovered from the employee, if any, and willmention the amount on the form. The form will then be sent to HR

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department, for computation of final settlement.

Death while in service

If an employee dies while in service, his/ her nominee shall be paid all thedues, which the company owed to the employee, after adjusting the deceasedemployee's dues to the Company.

HOD shall communicate the concerned HR about the death of the employee.

HR representative will be sent to deceased employee's house to assist her/hisfamily members on the day of the death along with a Condolence Messageaddressed to the family members of the deceased.

Information about death to be circulated to all the employees of theOrganization on the day of the death,

HR department shall initiate the ‘No Due Clearance' process for all cadres ofemployees, in this case.

On receipt of the ‘No Due Clearance' form, all the concerned departments willverify their records for assets/loans/advances issued to the employee and willascertain the amount to be recovered from the final settlement, and willmention the amount on the form. The form will then be sent to HR department, for computation of final settlement, to be paid to the deceased employee's family.

The family of the deceased will be reimbursed, transportation of personal effects at actual, in case of relocation, to his/her native place, as per the entitled Grade of the deceased employee, in line with the Company's Travel Policy.

Expeditious completion of formalities for release of terminal benefits will be undertaken by the concerned HR Dept, with assistance from the F & A Dept., and the nominee of the deceased employee.

HR Dept., shall also facilitate that the applicable insurance claims are paid to the deceased employee's family, from the concerned Insurance Companies.

Exit Interview

The company uses the exit interview as a tool to determine as to why an employee leaves the organization and how he/she felt about his/her tenure in the company. These interviews are carried out in a confidential manner and a summary of the Interview is prepared for detailed analysis to enable the Management to identify any set patterns of attrition and the attendant problem areas, which triggers such occurrences. This also helps Management in identifying organizational problems that might otherwise go undetected.

The exit interview shall be carried out in respect of the exiting employee, as per the table given below:

Cadre of the Exiting Employee

Exit Interviewer

CEO / CFO

Any one of the following -

COO / Director / ED(i) Chairman (ii) Vice Chairman and (iii)

Managing Director

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All other positions A person above the rank of reporting authority

In addition to the above, the Business HR / Corporate HR shall also carry out the exit interview, separately, in respect of the exiting employee, as per the table given below:

Cadre of the Exiting Employee

Exit Interviewer

ED & above Corporate Head HR & Business Head HR

Sr. VP & below Business Head HR

The Exit Interviewer/s shall record the proceedings of exit interview, in the 'Exit Interview Form', prescribed for the purpose.

Settlement of Account During Exit

All relieving/No Due Clearance formalities shall be completed on the day of relieving.

In case organization owes any amount to the employee, the HR department shall contact the employee and arrange to pay the settlement amount and in case employee owes any amount to the organization, the employee shall be relieved from the Company only after clearing all outstanding dues to the Company.

The full & final settlement of the exiting employee shall be completed immediately on relieving but in any case the same shall not exceed 7 working days from the relieving date.

Relieving letter / Service Certificate shall be handed over to employees on the last working day of the employee, subject to no due clearance.

Note:

All the above Policies / Procedures, in this Employee Hand Book are extracts from the existing Standard Operating Policies / Procedures of the Company and are subject to change at any time without any notice. Company reserves the right to modify/rescind at any time.

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