Comp Assign ( Group )

7/29/2019 Comp Assign ( Group )

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scmhrd|Symbiosis Centre for Management and Human Resource Development[Constituent of SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY), SI(DU)]

(Established under Section 3 of the UGC Act 1956, by notification No.F.9-12/2001 U.3 of the Government of India)

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COMPENSATION & BENEFIT IICar policy

SYMBIOSIS CENTRE FOR MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT,SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)

Symbiosis Centre for Management&Human Resource Development

Symbiosis InfoTech Campus | Plot No. P-15, | Rajiv Gandhi InfoTech Park Hinjewadi | Pune 411 057 | IndiaPhone : +91 020 22934303/5

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Tata Motors Company Car Policy

1. Objective

This document provides guidelines and establishes procedures and entitlement for travel arrangement for TataMotors employees while on official work .This policy is effective as on 1st January 2012 and employees areexpected to comply by the policy .

2. Nature of business the company is in low capital expenditure vs high capital expenditure leasevs company owned

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654

crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the

top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle

segments. It is the world's fourth largest truck and bus manufacturer.

The Tata Motors Groups over 55,000 employees are guided by the vision to be best in the manner in whichwe operate, best in the products we deliver, and best in our value system and ethics.Tata Motorshas earmarked Rs 3000 crore to Rs 3500 crore (USD 662 million- USD 773 million) in annualaverage capital expenditure for its India operations over the next few years.For the travel purposes of all Tata Motors employees and delegates, the use of car lease is in place

3. Scope

The entirety of this policy applies to all individuals traveling on OFFICIAL BUSINESS .This includes:

President and Executive Director

Heads of department

Employees

Representatives/Delegates to Affiliated Organizations and Committees

4. General



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4.1. Under this scheme eligible employee can avail of a leased car for official duties . For this purpose, thecompany has entered into an agreement with a lease finance company.

4.2. Employees can select any car of their choice within their lease rent entitlement limit.

4.3. Full finance is available without any margin money requirement. The amount that can be rentalizedincludes the following:

4.3.1. Ex-Showroom Cost of the car4.3.2. Registration Fees4.3.3. Insurance4.3.4. Octroi and other taxes.

However, the minimum amount that would need to be rentalized is the Ex-Showroom cost of thevehicle.

4.4. At the end of the Lease Term, the car will be returned to the leasing company.

5. Standard Procedure:

5.1. The process starts with the employee getting an approval of his/her respective HOD vide e-mail on amodel that falls within his/her car lease entitlement limit.

5.2. Employee negotiates with the dealer to get the best deal possible and gets a formal quotation in theform of Proforma Invoice.

5.3. Employee then submits to the Admin Department. an application for joining the company car scheme inthe prescribed format enclosing the Proforma Invoice and the e-mail approval from HOD.

5.4. Employee also executes an Undertaking on Rs. 20 Stamp Paper and submits the same to AdminDepartment.

5.5. Admin gets the approvals from Finance on the Application Letter and retains the original ApplicationLetter and Proforma Invoice for their records.

5.6. Admin intimates the Lease Finance Company vide Authorization Letter enclosing a copy of ProformaInvoice.

5.7. The Lease Finance Company then sends the following to the Admin Department.:

5.7.1. Cheque in the name of the Dealer

5.7.2. Covering Letter to the Dealer

5.7.3. Form 20 for signature of Authorized Signatory



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5.8. Commencement date for the lease period under the scheme shall be the date on which cheque isdrawn in favor of the dealer by the Lease Finance Company.

5.9. Admin gets the required signature on Form 20. Admin hand over the following to the employee to takethe delivery of the car:

5.9.1. Cheque in the name of the Dealer

5.9.2. Covering Letter to the Dealer

5.9.3. Form 20 with approval from Authorized Signatory (CFO)

5.9.4. Copy of ABCs PAN Card

5.9.5. Companys Address Proof

5.9.6. Letter of Authority to take the delivery of the car

Admin retains a copy of all the above documents.

5.10. Based on these documents employee can take delivery of the car.

5.11.On receiving the delivery of the car, the employee needs to forward the following docs to the AdminDepartment.

5.11.1. Original Invoice

5.11.2. Copy of Insurance Cover Note

5.11.3. Copy of Insurance Policy

5.12. Admin Department retains a copy of all the above documents and sends the Original Invoice and copyof the other three docs to the Lease Finance Company.

5.13. The Lease Finance Company then sends the following to the Admin Department:

5.13.1. Lease Agreement drawn in triplicate (One Original and two copies).

6. Leasing tenure

1. Employee has an option to choose tenure ranging from 3 yrs to 5 yrs. Current Lease rentals for the sameare indicated in the table below:



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* Please contact the Admin Department. for the latest Lease Rentals applicable.

7. Foreclosure:

6.1. Premature exiting from the car scheme by returning the car at any point of time has been provided forunder the scheme. However, where premature exit from the scheme is not at the behest of thecompany, the foreclosure charges / expenses shall be borne by the employee in totality. Instances ofpremature exit not at the behest of the company are foreseen as, but not limited to the following:

6.1.1. Resignations

6.1.2. Retirements (including Voluntary Early Retirement)

6.1.3. Personal Reasons

6.2 The working of the foreclosure charges would be as agreed with the Lease FinanceCompany. In case of foreclosure, value would be arrived at by discounting the balance rentalsand the resale value considered in the package. If the leasing company obtains the saleproceeds of the vehicle, the employee will be liable to pay only to the extent the net saleproceeds are less than the foreclosure charges.

6.2. In case the employee is joining a new organization, there is a possibility of assigning the car to the neworganization by the Lease Finance Company. This will need to be mutually decided by the LeaseFinance Company and the concerned employees new organization.

8. Overall Co-ordination/Clarification/Suggestions

8.1. Car Scheme will be co-ordinate on an all India bases by the Administration Department in Head Office.The department shall maintain an MIS pertaining to the scheme.

8.2. All clarifications with regard to the scheme can be obtained from Administration Department.

8.3. All suggestions for improvement of the scheme should be addressed to the Administration Department.



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Tenure Resale Value Rental per lac per month (plpm)*

2 Yrs 30 % Rs 2400

3 Yrs 20 % Rs 2250

5 Yrs 15 % Rs 1930


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Comp Assign ( Group )

Documents

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