PART II:

PAGE 19

Compensation Policy

OBJECTIVE:

To provide for a uniform, stable and reasonably competitive compensation structure for all employees.GRADES & DESIGNATIONS

To rationalise the compensation policy, positions are classified into grades. The grades and respective designations are as below:

GRADEDESIGNATION

ExecutivesM.D, C.O.O, President, Sr. V.P, V.P

M-10Sr. General Manager

M-9General Manager

M-8Dy. General Manager

M-7Sr. Manager

M-6Manager

M-5Dy. Manager

M-4Asst. Manager

M-3Executive

M-2Sr. Officer

M-1Officer

GETGraduate Engineer Trainee

Tr. OfficersTrainee Officers

BASIC SCALE

The basic scale would be as per the terms of employment and revisions from time to time.

GradeDesignationBasic Pay Structure

M-1Officer2000-125-2125-125-2250-125-2375-125-2500-125-2625-125-2750-125-2875- - -

M-2Sr. Officer3000-175-3175-175-3350-175-3525-175-3700-175-3875-175-4050-175-4225- - -

M-3Executive4000-225-4225-225-4450-225-4675-225-4900-225-5125-225-5350-225-5575- - -

M-4Asst. Manager5000-275-5550-275-5825-275-6100-275-6375-275-6650-275-6925-275- - -

M-5Dy. Manager6000-325-6325-6650-325-6975-325-7300-325-7625-325-7950-325- - -

M-6Manager9000-375-9375-375-9750-375-10125-375-10500-375-10875-375-11250- - -

M-7Sr. Manager11275-425-11700-425-12125-425-12550-425-12975-425-13400- - -

M-8Dy. General Manager15000-500-15500-500-16000-500-16500-500-17000-500-17500- - -

M-9General Manager17000-600-17600-600-18200-600-18800-600-19400-600-20000-600- - -

M-10Sr. General Manager24000-700-24700-700-25400-700-26100-700-26800-700-27500- - -

HOUSE RENT ALLOWANCE

Management Staff not provided with any type of Company Accommodation i.e either company owned or leased, will be paid House Rent Allowance at 40% of Basic Salary.

CONVEYANCE ALLOWANCE

Management staff not provided with Company Car will be paid conveyance allowance as follows:

GradesAllowance (Rs. per month)

M-1 to M-4500

M-5800

M-61500

M-72000

M-82500

M-9 to M-103000

EDUCATION ALLOWANCE

Management Staff will be entitled to Education Allowance as follows:

GradesAllowance (Rs. per month)

M-1 to M-10Rs.200/-

MEDICAL ALLOWANCE

Management staff will be paid Medical allowance @ 8.33% of Basic Salary per month.

LEAVE TRAVEL ASSISTANCE

Eligibility

Management staff will be entitled to LTA on completion of one year of service subject to confirmation of services. However, pro-rata LTA will be paid at the time of F&F even if 1 year is not completed.

LTA will be calculated on a calendar year basis (i.e. January to December every year.) and on pro-rata basis for the part of the year.

Quantum Of LTA

The LTA will be paid at the rate of one months Basic salary per year.

For claiming LTA with Tax Deduction at Source No leave will be required for claiming LTA with tax deduction.

An application to be made to HR Department for claiming LTA in the prescribed format.

For claiming LTA to avail Income Tax Exemption

A minimum of six days Leave should be availed for claiming LTA.

LTA should be claimed in the prescribed form.

Approval of Leave must be attached at the time of claiming LTA.

Any two journeys (LTA) can be claimed for tax exemption in a block of four years beginning from January 2002. LTA for self and family is admissible for tax exemption.

Definition Of Block Of Four Years

Under the present Income Tax Rules, a period of four calendar years beginning from the Year 2002 to 2005 has been defined as a block of four years during which you may avail LTA twice and avail tax exemption.

Definition Of A Family

Family includes:

The spouse and children of an individual; and

The parents, brothers and sisters of an individual or any of them, wholly or mainly dependent on the individual

Quantum Of Exemption Under The IT Act

Quantum of Exemption The amount of LTA for self and family permissible under the Income Tax Act for exemption is as follows:

For journeys performed by Air: Economy fare of Indian Airlines by the shortest route to the place of destination.

For journeys performed by Rail: Airconditioned first class rail fare by the shortest route to the place of destination.

For journeys performed by Road: The amount equivalent to Airconditioned first class rail fare, for the distance of journey by the shortest route, as if the journey had been performed by rail.

Documents Required For Claiming Exemption

The following documents must be produced along with the prescribed LTA claim form:

Mode of travelDocuments

RailPhotocopies of railway tickets

AirOriginal Jacket of used tickets

RoadBy own vehicle: Petrol bills

By hired car:

Bill of the Operator

Proof indicating the places visited

Advance For LTA

An advance for LTA can be availed for booking tickets by making an application to HR Dept together with a copy of the approved leave application. The advance will be paid up to 70% of entitlement. The balance amount shall be paid on production of travel tickets within seven days of completion of the journey, failing which the advance will be recovered from the salary.

Accumulation Of LTA

Accumulation of unavailed LTA is allowed upto two years within the block of four years specified under the Income Tax Rules. However, the fourth years LTA cannot be carried forward to the next block for accumulation purposes. The current block is for the period of calendar year 2002-2005.

TELEPHONE ALLOWANCE

Telephone Allowance will be paid as under:

GradesAllowance (Rs. per month)

M-1 200

M-2300

M-3400

M-4 500

M-5600

M-6800

M-71000

M-81200

M-9 to M-101500

SOFT FURNISHING ALLOWANCE

Soft Furnishing Allowance will be paid as under:

GradesAllowance (Rs. per month)

M-1 to M-2200

M-3400

M-4 to M-5600

M-6 to M-7800

M-8 to M-101000

BOOKS & PERIODICALS ALLOWANCE

Books & Periodicals Allowance will be paid as under:

GradesAllowance (Rs. per month)

M-1 to M-4nil

M-5200

M-6400

M-7600

M-8800

M-9 to M-101000

DRIVER ALLOWANCE

Driver Allowance will be paid as under:

GradesAllowance (Rs. per month)

M-1 to M-7nil

M-81500

M-9 to M-102000

PETROL ALLOWANCE

Petrol Allowance will be paid as under:

GradesAllowance (Rs. per month)

M-1 to M-7nil

M-82500

M-9 to M-103000

EX-GRATIA

Management staff will be paid Ex-Gratia @ 8.33% of Basic Salary per month.

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