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THE EMPLOYEE HANDBOOK

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REVISION DETAILS

VERSION YEAR OF

ISSUE PREPARED BY

REVIEWED BY

APPROVED BY AUTHORIZED

BY

EHB Version

2.0 2015

Ms. Madhurima Biswas

Mr. Sandeep Gupta

Mr. Durga Prasad Nomination & Remuneration Committee

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How To Use This Handbook

This employee handbook is a summary of policies, procedures and practices related to human resource management at IL&FS Technologies Ltd. (herewith referred to as ITL). It is designed to acquaint you with most of ITL policies, work rules and benefits. ITL reserves the rights to change, rescind, or modify any of the terms and conditions mentioned in this document, at its discretion without giving prior notice to employees. The handbook is divided into the following 5 sections:

SECTIONS SUB SECTIONS PAGE NO.

A. INTRODUCTION Purpose of the Handbook 5

B. EMPLOYMENT POLICIES Operational Guidelines 7

Functional Guidelines 7

General Guidelines 11

Work Culture Guidelines 13

C. COMPENSATION DETAILS Compensation Guidelines 17

D. FUNCTIONAL POLICIES Communication 22

Local Conveyance 23

Domestic Travel 24

Foreign Travel 27

Deputation Allowance 30

Transfer/ Relocation 31

Leave 34

Holiday Working Policy 36

E. OTHER BENEFITS Company Vehicle Policy 38

Car Hire Policy 40

Furniture & Assets 41

Housing Loan Interest Subsidy 43

Long Service Award 47

Marriage Gift 48

Medical Benefits 49

Medical Health Check-Up 51

Salary Advance 53

Employee Referral 54

Certification Reimbursement 55

Each of the above mentioned sections are distinctly numbered and cataloged to enable convenience in modifying and/or adding new policies. All queries related to the Handbook and the policies stated within are to be addressed to the HR department.

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INTRODUCTION SECTION – A

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Introduction

At ITL, we strive to create a progressive and employee friendly environment. To facilitate effectiveness of our employees, it is crucial that we maintain a balance between structures and processes to allow flexibility backed by good business sense. The purpose of this handbook is to establish guidelines for our employees. However, looking at the dynamic nature of our changing business and practices, we realize that this handbook may not be able to fully anticipate all situations that might arise in the near future, thus this will be updated on regular intervals.

Purpose of the Handbook To provide you with easy access to the Company’s Human Resource policies and procedures, in order to increase clarity and transparency; and to serve as a ready-to-use guide on HR matters. To facilitate the management of Human Resource issues at the first point of contact; that is, to enable supervisors to manage HR issues as and when they are first raised.

Employment Equity ITL is an equal opportunity employer and employs personnel without regard to race, ancestry, place of origin, color, ethnic origin, language, citizenship, creed, religion, gender, sexual orientation, age, marital status, physical and/or mental handicap or financial ability. While remaining alert and sensitive to the issue of fair and equitable treatment for all, ITL has a special concern with the participation and advancement of all sections of society. We welcome all employees to implement and follow these policies, into our work environment.

Statement of Philosophy ITL wishes to maintain a work environment that fosters personal and professional growth for all employees. Because of their role, managers and supervisors have the additional responsibility to lead in a manner which fosters an environment of respect for each employee. It is the responsibility of all employees to: • Foster cooperation and communication among each other • Treat each other in a fair manner, with dignity and respect • Promote harmony and teamwork in all relationships • Strive for mutual understanding of standards for performance expectations, and

communicate routinely to reinforce that understanding • Encourage and consider opinions of other employees or members, and invite their

participation in decisions that affect their work and their careers • Encourage growth and development of employees by helping them achieve their goals • Seek to avoid workplace conflict, and if it occurs, respond fairly and quickly to provide the

means to resolve it • Administer all policies equitably and fairly, recognizing that jobs are different but each is

important; that individual performance should be recognized and measured against predetermined standards; and that each employee has the right to fair treatment

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EMPLOYMENT POLICIES

SECTION B

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Operational Guidelines

Policy These Guidelines are intended to highlight the company policies, practices, and benefits and cannot be construed as a legal document or contract

Rationale Maintaining the effectiveness of ITL employees, these guidelines aim to provide assistance to address basic operational queries and enable employees to manage their roles and responsibilities in the specified areas. These guidelines answer queries regarding joining formalities that have been mentioned in the employment letter and operational policies and procedures that must be followed throughout the employee’s term with the Company.

Eligibility These guidelines are applicable to all employees of ITL and trainees.

Functional Guidelines

Power to Establish and Modify The Board of Directors and/or Nomination & Remuneration Committee may establish and/ or

modify the policies and related regulations as laid out by the Company.

The Board of Directors has empowered the CEO to issue and implement such administrative instructions.

Commencement of Service Service of an employee shall commence from the working day on which an employee reports for duty.

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Introduction of New Band Structure

EXISTING NEW

GRADE/DESIGNATION TECHNICAL

TRACK NON TECHNICAL

TRACK BANDS

SUB- BANDS

ROLES/TITLE

Chairman Chairman Chairman

E

E3 Chairman

Chief Financial Officer CXO CXO E2 CXO

Sr. Vice President Sr. Vice

President Sr. Vice President E1 Head – Function

Vice President Vice

President Vice President

D

D3 VP - Function

AVP

Associate Vice

President

Associate Vice President

D2 AVP – Function

General Manager

General Manager D1 GM - Function

Senior Manager Senior

Manager Senior Manager

C

C3 Sr. Manager -

Function

Manager Manager Manager C2 Manager - Function

Asst. Manager Associate Manager

Associate Manager C1 Team Lead/Associate Manager - Function

Senior Officer Sr. Engineer Sr. Executive

B

B2 Sr. Engineer /Sr.

Executive - Function

Officer Engineer Executive B1 Engineer/Executive -

Function

Trainee/Secretary Engineer Trainee

Management Trainee/Secretary

A

A2 Trainee/Secretary

Sub Staff NA Sub Staff/Assistant A1 Sub Staff/Assistant

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Service Service with the Company includes the period during which an employee is on duty as well as on leave duly authorized by the Superior but will not include any period during which an employee is absent from duty without permission or overstays his leave, unless specifically permitted by the Superior.

Probation & Confirmation Probation includes the time spent by an employee who has been inducted into the service of the Company but has not yet been confirmed. This period usually spreads across six months from the date of joining and may be extended to a maximum period of 3 months based on employee’s performance and management discretion. Extensions in probation period will be advised in writing to the employee. During the probation period, either party may terminate the employment by giving a month’s notice. Any shortfall in the notice period can be waived off at the discretion of the CEO/Service Delivery Head. However the CEO/Service Delivery Head reserves the right to adjust the remaining notice period against Notice Pay due from the employee, at its sole discretion. Employees’ who successfully complete their probation period will be considered as confirmed employees.

Resignation / Termination of Services post Confirmation

Confirmed employees may leave or discontinue service with ITL by giving a notice of minimum 60 days in writing to the Immediate Supervisor, the management will have the right to relieve the employee before completion of notice period, however the shortfall in serving notice period would be recovered from the employee’s Full and Final settlement. During Notice Period, an employee is not allowed to avail his earned leaves. Leaves if taken would result in extension of the Notice Period, equal to the number of leaves taken. The Notice Period will commence from the day following the submission of the resignation by the employee. Any shortfall in the notice period can be waived off at the discretion of the CEO/Service Delivery Head. However the CEO/Service Delivery Head reserves the right to adjust the remaining notice period against notice pay due from the employee, at its sole discretion.

Pay and allowances shall cease to accrue as soon as an employee ceases to be in service. In the case of an employee dismissed from service, the pay and allowances shall cease from the date of his dismissal. In the case of an employee who dies while in service, it shall cease from the date following that on which the death occurs.

Employees must settle all dues - loans, advances, imprests, and return all belongings of the Company, including furniture, office equipment, motor vehicles, and return possession of Company premises and accommodation before the last working day of the employee.

ITL will issue the releasing letter post completion of the above rule. The Company reserves the right to take steps including punitive charges, and also to take recourse to such legal redressals as may be mandated, in order to protect its interests fully. Conditions where the employee’s employment may be terminated on the day of accepting the resignation may be as follows:

If a memo requiring an explanation is issued and the employee resigns before the charge sheet is submitted

If disciplinary proceedings have been instituted against or are propose to be instituted against the employee for which the employee has been informed in writing

If the employee is under a contractual obligation to serve the Company for a specified period, which has not, yet expired

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If the employee owes the Company any sums of money; or

On any other sufficient ground to be recorded in writing

Secrecy All employees shall maintain the strictest secrecy regarding the Company's affairs and the affairs of its constituents and shall not divulge, directly or indirectly, any information either to a member of the public or of the Company's staff, unless compelled to do so by a judicial or other regulatory authority or unless instructed to do so by a superior officer in discharge of his duties. Any attendant liability that may arise out against the Company due to an employee’s breach of secrecy will be entirely to the employee’s account.

Compliance All employees must fully and promptly comply with all the applicable statutory and regulatory requirements while performing their duties, and must refer all doubts or queries to the Reporting Manager for advice.

Honesty & Integrity

All employees must serve the Company honestly and faithfully and use their utmost endeavors to promote the interests of the Company. Employees are encouraged to show courtesy and attention in all transactions and dealings with the Company's constituents.

Retirement All employees shall retire on attaining 58 years of age. For the purpose of this Rule, the employee shall retire on the last day of the month in which he attains 58 years of age.

Declaration to external Agencies Employees must refrain from owning wholly or in part, or conducting or participating in the editing or management of any newspaper or any other periodical/publication, except with the prior approval and sanction of the CEO. Employees must refrain from participating in any radio broadcast or giving any interview to a program telecast on Television, or contributing to any article or writing any letter to any newspaper or periodical or making public or publish or cause to be published any documents, papers or information that shall relate to the business of the Company and which may be available to them by virtue of their official capacity. They may do so only with prior approval and sanction of the CEO. Any employee in breach of the above shall be held responsible for any loss or damage that may be caused to the Company.

Dual employment Employees must not take part in the registration, promotion or management of a Company that is required to be registered under the Companies Act, 1956 (I of 1956) without the previous sanction of the Company, except in the discharge of their official duties. Employees must not undertake part-time work or any place of profit for a private or public body/person, or accept any fee, without sanction of the CEO. Such sanctions may be granted only in exceptional cases and when it is satisfied that the work can be undertaken without detriment to his/her official duties and responsibilities. The Company reserves the right to retain any fees received by the employee for undertaking such work.

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General Guidelines

All employees must fully comply with all applicable statutory/regulatory requirements and ITL’s Corporate Policies and Procedures in respect of their department activities and clarify all doubts with their Reporting Manager.

Employees must not bring or attempt to bring any political or other outside influence to bear upon any superior authority to further his/her interests in respect of matters pertaining to his/her services in the Company.

Employees must refrain from accepting, seeking or soliciting in their official capacity, for their personal benefit, any gifts or presents in cash or of significant monetary value.

Employee must not accept, solicit or seek rewards or compensation, for their personal benefit, of any monetary value, for the professional services rendered or business deals done on behalf of IL&FS, from existing and/or prospective constituents.

An employee, who is arrested for debt or on a criminal charge or is detained in pursuance of any process of law, will be considered as suspended from the date of his arrest or, as the case may be, of his detention, up to such date or during such other period as the Management may direct. Any payment made to such employee will be subject to adjustment of his/her pay and allowances which will be made according to the circumstances of the case and in the light of the decision as to whether such period is to be accounted for as a period of duty or leave. Full pay and allowances will be admissible only if the employee:

1. Is treated as on duty during such period

2. Is acquitted of all blame or satisfies the Managements’ criteria in case of his release from detention or of his detention being set aside by a competent court, that he had not been guilty of improper conduct resulting in his detention.

Disciplinary Action

Without prejudice to the provisions of other Rules, an employee who commits a breach of Rules of the Company, or who displays negligence, inefficiency or indolence, or who knowingly does anything detrimental to the interests of the Company or in conflict with its instructions, or who commits a breach of discipline or is guilty of any act of misconduct, shall be liable to the following penalties:

1. Reprimand 2. Postponement or stoppage of increment or promotion 3. Demotion to a lower band or to a lower stage in his incremental scale 4. Recovery from pay of the whole or part of any pecuniary loss caused to the Company

by the employee 5. Discharge 6. Dismissal

All the above penalties will be implemented post a written Charge sheet from the Management stating the Breach of rule and subsequent penalty.

The written Charge sheet will be given to the said employee so that he/she can have reasonable opportunity to answer them in writing or in person, as he/she prefers, and in the latter case his/her defense shall be taken down in writing and read to him/her.

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The Management may implement/suspend the Charge-sheet with immediate effect without any clarification provided the facts on the basis of which action is to be taken have been established in a court of law or court martial or where the employee has absconded or where it is for any other reason impracticable to communicate with him or where there is difficulty in observing them and the requirements can be waived without injustice to the employee. The officer empowered to pass the final order may place an employee under suspension. During such suspension, the employee shall receive a subsistence allowance as per the applicable laws. Unless decided otherwise by the management, the employee shall be refunded the difference between the subsistence allowance and the emoluments which he would have received but for such suspension, for the period he was under suspension and that if a penalty is imposed on him under the said clauses, no order shall be passed which shall have the effect of compelling him to refund such subsistence allowance. The period during which an employee is under suspension shall, if he is not dismissed from the service, be treated as a period spent on duty or leave as per management’s discretion.

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Work Culture Guidelines

Policy To standardize and communicate the working conditions applicable to all employees and to provide assistance for all related queries

Rationale Keeping the professional requirement of the company, this policy aims to standardize and provide clear guidelines for various terms and conditions related to the working conditions These conditions are a vital input for the definition ITL work culture and may be governed by the nature of the business as well as internal and external exigencies. These conditions may be changed or modified by the management at its discretion to optimize operational flexibilities

Eligibility The policy applies to all employees of ITL including trainees.

Dress Code It is essential that employees dress in a manner most befitting their profession. Employees should be neatly attired in well ironed apparel and in formal footwear at all times.

Monday to Thursday: Employees are expected to dress in business formals. Business formals for men would include full-sleeved shirts, formal trousers, formal shoes and ties. Slippers and sandals are prohibited. Women must be appropriately dressed in sarees, salwar / churidar kameez or western formals. Friday/Weekends/Holidays: Employees may wear smart casuals like Jeans, Collared T-Shirts and Sports shoes. Slippers and sandals are prohibited even on Fridays. However, if called for official meetings, they must adhere to the formal dress code.

Work Timings Office timing will be from 9:00 AM to 6:00 PM, Monday to Friday. However the employee has the flexibility of choosing his work hours in a day provided he/she maintains minimum 45 hours per week (including 30 minutes of lunch time). It is however mandatory for an employee to be present in office on all working days if not on leave. Employees posted at client sites, are required to adhere to the timings of respective client offices.

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Late-sittings Employees in A1 Band are usually required to stay late hours and work overtime due to business requirements. To support them, ITL will compensate by providing the following benefit: Incidental Allowance (all inclusive, no additional compensation for conveyance etc. to be made on account of late sitting and the like):

BAND

WORKING LATE ON WEEKDAYS (Rs. PER DAY) BEYOND 7:00 P.M TILL 9:00 P.M

WORKING LATE ON WEEKDAYS (Rs. PER DAY) BEYOND 9:00 P.M

WORKING ON WEEKENDS/HOLIDAYS (Rs. PER DAY)

A1 Rs.30 per hour

all inclusive

Rs. 30 per hour + Meals provided by company or

Rs. 50 per person as meal allowance whichever is

minimum

Rs. 100.00 per day + Meals provided by company or

Rs. 50 per person as meal allowance whichever is

minimum

Office Decorum The nature of ITL operations requires high-level intellectual processing by the employees at

all times. This requires maintaining a peaceful and pleasant work environment to optimize results

Employees are requested to maintain cordial tones while addressing fellow colleagues and outside parties

Boisterous and loud behavior, both personal and on phone, are unacceptable. Employees must realize the delicate issues involved while making comments related to gender/religion/nationality to fellow colleagues. Negative remarks regarding any other employee or person must be avoided

Employee Grievances ITL aims to provide a performance conducive work environment to all its employees and encourage excellent inter-personal relations. The employee grievance policy addresses all employee grievances in the most effective manner in order to minimize inter and intra-departmental friction and develops cohesiveness among relationships. Grievance may arise out of both work related and non-work related issues. In order to maintain sanctity of the employee grievance process and the valuable time involved, employees are encouraged to minimize addressal of grievances and focus only on genuine and serious issues.

Intra departmental grievances All grievances and issues within a department may be addressed and discussed with the supervisor. Discussion/dialogue and mutual understanding are considered the best tool to resolve issues. In case of unsatisfactory results, employees may address the same to a higher level in written and seek assistance.

Inter-departmental grievances

Employees are required to first address the issues directly with the employee in the concerned department and resolve the issue. In case of unsatisfactory results, the employee may address the same to his/her supervisor in written and request intervention. The supervisor in turn may further interface with his counterpart in the concerned department and resolve the issue. The same is to be

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registered as a memorandum for further reference. Only issues that require the immediate notice of senior management may be addressed to the CEO. Such cases should be minimized and the management’s decision will be considered as final.

Sexual Harassment Policy ITL has adopted the IL&FS Group company policy on “The Sexual Harassment of Women at Workplace – Prevention, Prohibition and Redressal Policy”. The same is uploaded as a separate document in ITL HR Portal.

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COMPENSATION DETAILS SECTION C

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Compensation Guidelines

Policy To introduce and orient the employees on the prevailing compensation structure

Rationale The objective is to provide band-wise compensation and benefit structure so that employees know where they fall within the organization. The guideline helps explain the salary structure and benefit related to their Bands.

Eligibility These guidelines are applicable to all employees excluding management trainees of ITL.

Compensation Structure The Compensation Package or Annual Cost–to–Company (CTC), comprises of the following components:

Basic Pay: The fixed portion of the package that is used as base to calculate other Allowances and

retrials.

House Rent Allowance (HRA): House Rent Allowance will be paid at the rate of 50% of Basic

Pay in Mumbai, Delhi (including NCR), Chennai and Kolkata (Metros) and 40% in other cities (Non-Metros).

Variable Pay: This is specific to employees and is not necessarily a salary component for all the

employees

Special Allowance: This allowance is specific to the employee and is not necessarily a salary

component for all the employees.

Conveyance Allowance: Conveyance Allowance has been provided to all bands as per

entitlements. The Conveyance Allowance may also be utilized to avail the Company Vehicle/ Car Hire Policy.(Refer to Company Vehicle/Car Hire Policy in section E). The entitlements for the Conveyance Allowance (maximum limit) are as follows:

BAND MONTHLY CONVEYANCE ALLOWANCE (ALSO CALLED VEHICLE ALLOWANCE) ENTITLEMENT

E Rs.55,000

D3 Rs. 45,000

D2 Rs.35,000

D1 Rs.30,000

C3 Rs.25,000

C2 Rs.11,000

C1 Rs.8,000

B2 Rs.6,000

A2 & B1 Rs.4,000

A1 Rs.1,000

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Meal Card: Meal Card worth Rs. 2,000/- per month is provided to all employees each month for

the purpose of lunch, till the same is revised as considered appropriate.

The meal card can be used outside office premises for lunch.

No separate lunch expenses will be reimbursed.

Offices where the lunch facility is not available, employees are required to make their own arrangements using the meal card.

Leave Travel Assistance (LTA): ITL reimburses travel expenses incurred by the employee for

personal travel. For the purpose of LTA, ‘Family’ includes: 1. Spouse 2. Dependent and/or independent children 3. Dependent parents 4. Dependent siblings

Conditions: An employee must be on leave for a minimum of 3 continuous days of work.

An employee can claim tax benefit only for travel in India. An employee can claim LTA benefit twice in a block of 4 years. Current block 2014-2017: January 2014 – December 2017

LTA Entitlement:

BAND AMOUNT (PER ANNUM)

E3 Rs. 50,000

E2 Rs.36,000

E1 Rs.36,000

D3 Rs. 30,000

D2 Rs.30,000

D1 Rs.27,000

C3 Rs.24,000

C2 Rs.21,000

C1 Rs.15,000

B2 Rs.12,000

B1 Rs.10,000

A Rs.8,000

Unclaimed LTA can be claimed only after completion of one year by the confirmed employee, however this is taxable and net of tax will be paid to the employee on their request to Finance & Accounts department. Also the same cannot be reclaimed as LTC in the same financial year.

Medical Claim: Employees may claim Medical Expenses up to Rs. 15,000 per annum (Rs 1250

per month) and Rs. 27,000 per annum for Chairman. In case the employee joins or leaves during the course of a year, the medical reimbursement entitlements will be provided on a pro-rata basis.

The employee may claim the reimbursement for medical expenses incurred on self or dependents (Spouse, Dependent children under 24 yrs, and dependent parents).

s

Furniture Sofa Set with Centre Table and side tables / ArCEO/Sr.

Vice President

Guest house (If available)

or 5 star Hotel

Actual

Assistant Vice president &

Vice President

Guest house (if available)

or 4 star Hotel

Rs. 400 per day

__ Facility Sponsored

Percentage of Per Dayto be Deducted

Accommodation

50%

Breakfast, Lunch or Dinner

10% each meal

Time Spent

Per DayAllowance Applicable

More than 12 Hours in the Host City

100%

6-12 Hours in the Host City

50%

0- 6 Hours in the Host City

25%

Grade/Level

Grant for relocation with family

Grant for relocation without family (@33%)

Vice President and Above

Rs. 1,00,000.00

Rs. 33,000.00

Senior Manager – Assistant Vice President

Rs. 75,000.00

Rs. 24,750.00

Manager and Below

Rs. 50,000.00

Rs. 16,500.00

vel Grades/ Per DayEntitlements*

CEO

SVP

VP/AVP

Others

Per DayPer day

500

400

300

200

Business

Promotion Expenses

100 Per day Up

to 500 Entire trip

100 Per day Up

to 500 Entire trip

75 Per day Up to

300 Entire trip

50 Per day Up to

200 Entire trip

Facility Sponsored

Percentage of Per Dayto be Deducted

Accommodation

50%

Breakfast, Lunch or Dinner

10% each meal

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The reimbursement claims under this benefit must not be covered by the Medi-claim scheme as offered by the company.

All expenses may be collectively claimed once in every calendar month in the Medi-claim Form in the ERP tool along with supporting bills, cash memos, etc. This would cover expenses on medicines, drugs, consultation fees paid to doctors, dental treatment, spectacles (with a sub-limit of 30% of the total entitlement or Rs. 2,500/- per annum, whichever is higher,) etc. In addition, hospitalization and domiciliary hospitalization expenses disallowed by the insurance companies out of claims made by the employees would be reimbursed up to the applicable maximum limit. No cosmetic items are covered under the claim.

Income-Tax deduction will be applicable as per the prevailing Tax Rules. The un-utilized amount, at the end of the financial year, can be utilized by rolling over the un-utilized amount to the succeeding year for claiming as medical reimbursement up to a maximum period of 1 year. Previous accrued entitlements can be carried forward till the next financial year end.

Provident Fund: Both ITL and the employees will contribute 12% of the Basic Pay, which will be

deposited with the Employees Provident Fund Trust and will be subject to the rules, regulations framed by the Trust or under The Provident Fund & Misc. Provisions Act 1952 and rules there under. All employees are currently eligible to receive Provident Fund benefits. The employer’s contribution will be part of CTC.

Performance Related Pay: The PRP program seeks to reward good performance, to

inculcate a sense of competition among employees so that they can perform better than other organizations and competitors in the country, while collaborating among themselves and working as a team. At the end of every financial year the CEO would decide on the basis of the performance of the Company a certain quantum to be allocated towards PRP.

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Gratuity Scheme

An employee shall be paid Gratuity at 30 days Basic Pay for every completed year of service or part thereof in excess of six months, subject to the rules and regulations of the Gratuity Fund. Gratuity shall be payable on separation of employment to an employee after he has rendered continuous service for a minimum period of five years.

All confirmed employees are eligible to receive Gratuity benefits. Example: If an employee has worked for 7 years and 7 months and his Last drawn Basic is Rs.25,000/- , his gratuity calculation will be as follows:

(30/30)*25,000*8 = Rs.2, 00,000

When calculating completed years of service, if an employee worked for more than 6 months , it will be considered as full year .

Superannuation Scheme

It is a benefit extended to employees (Band C3 and above) as a retrial component, which also qualifies for tax exemption under the Income Tax Act. Here an employee can choose to allocate 13% of Basic Pay, subject to a maximum of Rs.1lac per annum.

Eligibility: Employees in Band C3 and above are given a onetime option to be a part of or opt out of the Superannuation Scheme.

a. In case the employee chooses to be a part of the Superannuation scheme, his/her contributions begin to the Fund. The contributions made can be vested as per the eligibility norms of the Superannuation Fund.

b. In case the employee chooses to opt out of the scheme, he/she would be paid a special allowance instead.

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FUNCTIONAL POLICIES

SECTION D

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Functional Policies

Keeping the business requirements of ITL in mind, certain Functional Policies have been established to ensure objectivity and transparency. These policies act as guidelines for the employees while undertaking any functional activity that involves administrative involvement.

Communication

The following monetary limits are placed on mobile phone bills (International official calls will be over and above these limits, except personal long distance call charges, which would be borne by the employee), data card and landline charges:

BAND RE-IMBURSEMENT LIMITS FOR TELEPHONE CHARGES AT RESIDENCE, DATA

CARD (PER ANNUM) + MOBILE PHONE BILLING (PER ANNUM)

E On Actual

D Rs. 60,000

C Rs. 30,000

B N. A. Rs. 10,000

A N. A. Rs. 6,000

For the purpose of reimbursement, i. The mobile phone bill and data card bill needs to be in the name of the employee

ii. Landline bill can be claimed if the bill is in the name of the employee, spouse or any of his/her blood relative

Company will reimburse the bill amount as per the above limits minus the personal calls. In case of non declaration, the company reserves the right to make deductions every month on account of personal calls

In case of billing exceeding the Limits mentioned above, excess will be reimbursed to the extent of official usage only, provided necessary approvals are taken

For Band A , B & C mobile phone billing re-imbursements will be based on functional requirement and prior approval from Reporting Head and Service Delivery Head

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Local Conveyance ITL aims to compensate its employees a local conveyance for all official travel undertaken as per the work requirements. These reimbursements must be done on a monthly basis against cash vouchers and bills. The reimbursement limits are set by the management and may be revised from time to time depending on the changing market trends. The reimbursement limits are as follows:

BAND MODE OF TRANSPORT

E Company Car/Executive Local Cab

D Local Taxi/Executive Local Cab

C Local Taxi/Auto Rickshaw

B Local Taxi/Auto Rickshaw

A Local Public Transport/Auto Rickshaw

In case the employee is using his/her own conveyance, he/she will be reimbursed as follows: Car @ Rs. 12.00 per Km Two – Wheeler @ Rs. 4.50 per Km

Employees are required to submit bills in ERP, duly approved by their respective supervisors, of rented cars along with the conveyance reimbursement form

For reimbursements against own vehicles, employees are required to give a declaration to accounts with details of distance and destination covered

Reimbursements against official travel do not include other expenses like lunch, etc. In case of non-availability of assigned mode of transport, employees must take approval from respective supervisors for an alternate mode of transport

The conveyance for the journey from home to the office/client site that an employee normally reports to and back for official duty cannot be claimed.

Level

Mode of Transport Limit

Senior Vice President and Above

Company Car

Assistant Vice President & Vice President

Local Taxi (on actual)

Secretaries & Management Trainee - Senior Managers

Local Taxi/Auto Rickshaw (on Actual)

Staff Cadre Employees

Local Public Transport/Auto Rickshaw (on Actual)

Level

Working late on weekdays (Rs. Per day) Beyond 7:00 p.m. till 9:00 p.m.

Working late on weekdays (Rs. Per day) Beyond 9:00 p.m.

Working on Weekends/ Holidays (Rs. Per day)

Assistants/Secretary & Officers –Asst. Managers

Rs. 200.00 all inclusive

Rs. 200.00 + Meals allowance @ Rs. 100.00 per person

Rs. 200.00 + Meals allowance @ Rs. 100.00 per person (or meal)

Staff (office attendants)

Rs. 30 per hour all inclusive

Rs. 30 per hour + Meals allowance @ Rs. 50.00 per person (or meal)

Rs. 100.00 + Meals allowance @ Rs. 50.00 per person (or meal)

Monthly Conveyance Allowance( also

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Domestic Travel

Policy To provide administrative and financial assistance and coverage of expenses to employees while traveling on domestic official tours.

Rationale Keeping in mind, the extensive traveling requirements for employees at all levels, ITL extends administrative and financial support to all its employees. The support is extended considering the level of the employees and the requirements of the job. Some of the terminology used in the policy is defined as follows: “Base City” - The location at which the employee is working “Host City” - The location to which the employee is traveling “Full Day” - A period of continuous 24 hours.

Eligibility The policy applies to all confirmed employees of ITL as well as management trainees.

Entitlement Travel Applicability: The mode of travel entitled will be as follows unless specified separately:

BAND MODE OF TRAVEL ENTITLED

E "Business Class" Air Travel/ AC 1st class by Train

B,C &D "Economy Class" Air Travel/ AC 2nd class by Train

A II tier AC/III Tier AC/ Bus wherever applicable

In case the employee is using his/her own conveyance to travel to the host city or for local travel in the host city, he/she will be reimbursed as follows: Car @ Rs. 12.00 per Km Two – Wheeler @ Rs. 4.50 per Km For short travel time by surface transport or cases where overnight trains are available, employees are expected to opt for the cheaper modes of transport.

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Boarding, Lodging and Incidental Expenses Employees may avail the company provided arrangements or make their own arrangements. Boarding, Lodging & Incidental Limits:

BAND

BOARDING LIMITS WHEN STAYING IN COMPANY GUEST HOUSE (WITH VOUCHERS/BILLS) IN INR

LODGING WHEN COMPANY GUEST HOUSE NOT AVAILABLE

INCIDENTAL EXPENSES (WITHOUT VOUCHERS/BILLS) IN INR

BOARDING LIMITS WHEN STAYING WITH FRIENDS & RELATIVES (WITH VOUCHERS/BILLS) IN INR

LODGING GRADE WHEN STAYING IN HOTEL

LODGING LIMIT + BOARDING LIMITS WHEN STAYING IN HOTEL (WITH VOUCHERS/BILLS) IN INR

E On Actual 2500 5 Star Hotel 10,000 + Actual 500

D 1000 1500 4 Star Hotel 7000 + 1000

C 750 1125 3 Star Hotel 3500 + 750 250

B 500 750

2 Star Hotel

2000 + 500

100 A 300 450 2000 + 300

*The above are per day limits

Local Travel in the Host City

MODE OF TRAVEL ENTITLED

BAND OPTION I

OPTION II

CONVEYANCE ALLOWANCE ( LUMP SUM AMOUNT TAKEN IN LIEU OF THE COMPANY

PROVIDED TRANSPORT)

E Company Car / rented car - Honda city equivalent

Actual

D Company Car / rented car - Esteem equivalent (on actual)

1000

B/C Local Taxi / Auto Rickshaw (on actual) 750

A Local Public Transport / Auto Rickshaw ( on actual)

NA

*The above are per day limits and includes all travel expenses within the city along with to & from travels to office from the place of stay. * Submission of bills is mandatory wherever possible

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Terms & Conditions Employee must seek an approval from the supervisor before traveling wherever possible.

Alternatively, information must be sent via e-mail to the supervisor informing about the proposed travel before commencement of travel.

All expenses will be reimbursed to the employee post approval from the authorities and are subject to presenting of appropriate bills wherever applicable.

The employee may use the travel advance to meet all expenses while traveling to the host city. This advance however has to be settled with presentation of appropriate bills within one month of travel; else the same will be recovered from the employee’s monthly salary.

In case, two employees at different levels are traveling together, they must do so as per their individual entitlements unless otherwise permitted.

All official entertainment expenses will be reimbursed on actuals post approval from the reporting manager. Liquor expenses as a part of entertainment or business promotion expenses must be authorized by the superior (only CEO). While availing reimbursement, employee must ensure that the name and number of the guests must be mentioned on the bill.

Employees are requested to minimize overhead expenses like long distance calls and other communication expenses from the hotel. For official long distance calls, use of mobile phones is usually the best option.

For local travel expenses in the host city, employees, up to the level of Senior Manager, must fill a separate conveyance voucher giving all travel details to avail the reimbursement.

Employees staying at the ITL Guesthouse will bear all meal and other expenses such as laundry/ironing/etc. as per prevailing Guesthouse rates and claim the same in his/her travel bill.

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Foreign Travel

Policy

To provide administrative and financial assistance to employees while traveling on official tours for foreign travel.

Rationale

Keeping the extensive traveling requirements for employees at all levels in mind, ITL has extended administrative and financial support to all its employees. The support has been extended considering the level of the employees and the requirements of the job.

For convenience, terminology used in the policy is follows:

“Base City” - The location at which the employee is working. “Host City” - The location to which the employee is traveling. “Full Day” - A period of continuous 24 Hours.

Eligibility The policy applies to all confirmed employees of ITL as well as management trainees.

Entitlement

BAND MODE OF TRAVEL ENTITLED AIRPORT DROPS AND

PICK-UPS

E First Class / Business Class (Air) Taxi

D Business Class* (Air) or Actual Cost of Surface Transportation Taxi

B to C Economy Class (Air) or Actual Cost of Surface Transportation Taxi

Travel Insurance

All employees must obtain a medical and baggage insurance before the date of departure. All expenses for the above will be borne by the company.

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Per Day Allowance

Applicability: Employees must make their own arrangements for Boarding, Lodging, conveyance and other expenses while traveling to a foreign location. For this purpose, they will be given a Per Day Allowance. The Per Day Allowance entitlements are governed by the prevailing RBI norms.

PER DAY ALLOWANCE FOR OFFICIAL FOREIGN TRIPS (Not including Philippines for long term stay)

The currency for the above travel to UK will be GBP, Europe - EURO, Rest of the World – USD.

The above Allowance is exclusive of the Airport Taxes. For Indian Airports, the taxes will be reimbursed on actual. For Foreign Airports, reimbursement will made @$50.00 per trip.

In case of project related travel for more than 7 days, per day entitlement may be reduced depending on the expected project revenue. This will be decided on case-to-case basis and approved by CEO.

Foreign Travel Rules: specific to long term Philippines travel

For long-term official tours of more than 15 days on International projects such as Philippines, following DA rates will apply (with accommodation being provided by company):

1. Up-to Band ‘C’: First 15 days @ US$100 per day and beyond that @ US$ 1600 per month.

2. For Band ‘D’ and above: First 15 days @ US$150 per day and beyond that @ US$ 2400 per month.

In case the company cannot provide accommodation, the per day rate (or monthly rate) would be double the aforesaid rates. For the employees coming for a short duration back to India (less than 15 days) after a tour of more than one month and being deputed back to Philippines, the next deputation (if more than 15 days) will be covered by only the monthly rate mentioned above.

Terms & Conditions Approval of the CEO must be obtained for all foreign travel itineraries in writing prior to commencement of the travel.

The Boarding, Lodging and daily expenses along with conveyance in the Host City are to be arranged by the employee. For this purpose, ITL provides a Per Day Allowance as entitled.

Based on the foreseen number of days of travel, the accounts department provides the Per day allowance to the employee.

THE FOLLOWING LIMITS WILL BE REIMBURSED BASED ON PRODUCTION OF BILLS. LIMITS UNDER INCIDENTAL EXPENSES CAN BE CLAIMED WITHOUT BILLS.

BAND

E D C,B & A /

BIFURCATION

Limits Per Day 500 300 200

Business Expenses Per Day 100 75 50

Incidental Expenses Per Day (This is a subset of Limits per day)

200 100 50

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Calculation of Per Day Allowance

Per Day Allowance is calculated from the time the employee reaches the host city till he departs the host city i.e. the time spent in the host city. Full Per Day is payable for a “Full day”, i.e. a block of 24 hours in the Host city.

For periods less than 24 Hours spent in the Host City, the Per Day is paid as follows:

TIME SPENT PER DAY ALLOWANCE APPLICABLE

More than 12 hours in the Host City 100%

6-12 Hours in the Host City 50%

0-6 Hours in the Host City 25%

*All expenses related to the Insurance, visa, Tickets, would be borne by ITL.

In case, two employees at different levels are traveling together, they must do so as per their individual entitlements unless otherwise permitted.

Employees are requested to minimize overhead expenses like long distance calls and other communication expenses from the hotel. The use of Pre-paid calling cards will be more Cost effective.

Employee must submit a Travel Expense sheet to the accounts department with all the necessary travel bills, unutilized foreign currency/ travelers’ cheque, expense bills with details and insurance papers within 10 days of arrival. Failing which, the travel advance will be deducted from the subsequent monthly salary and no reimbursements will be made for the additional expenses.

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Deputation Allowance

Policy Aim is to provide an allowance to employees travelling to project sites /client locations

Rationale To ensure employees get an incentive to travel to project sites and take care of dual expenses they incur while staying away from home

Eligibility Covers all employees including trainees who are on deputation to a project site/client location for more than 30 days

Monthly Allowance

BAND

METRO CITIES OTHER CITIES (NON METRO)

LODGING PROVIDED

BY COMPANY

LODGING NOT PROVIDED BY

COMPANY

LODGING PROVIDED BY

COMPANY

LODGING NOT PROVIDED BY COMPANY

FOOD + CONVEYANCE (INR)

ACCOMMODATION (INR)

FOOD + CONVEYANCE (INR)

FOOD + CONVEYANCE (INR)

ACCOMMODATION

(INR)

FOOD + CONVEYANCE (INR)

D 22500 7500 22500 15000 5000 15000

C 15000 7500 15000 10000 5000 10000

B 11250 7500 11250 7500 5000 7500

Procedure

Employee must have prior approval mail before proceeding on deputation from supervisor and Delivery Head/COO/CEO to avail the Deputation Allowance.

Supervisor to send deputation details such as duration of deputation, project name and reason for deputation to HR prior to employee’s start date of deputation.

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Transfer/ Relocation

Policy ITL provides administrative, logistic and financial support to its employees in the event of a transfer from one location to another to meet organization objectives.

Rationale The evolving business plan and strategy of ITL makes it imperative to transfer employees from time to time. The company intends to make the process of transfer and relocation easier and supportive to address the individual needs of the employees and the organization.

For convenience, terminology used in the policy is follows:

“Base City” - The location at which the employee is currently working; “Host City” - The location to which the employee is transferred; “Transition Period” The period between the date of receipt of the transfer and 60 days thereafter will be considered as transition period.

Eligibility The policy applies to all confirmed employees of ITL as well as management trainees.

Transfer Intimation

The employee will be provided with a transfer letter intimating the location, effective date and reporting person at the new location. Employees must resume duties at the new location within two weeks from the date of receipt of the letter unless otherwise specified.

Travel

The employee being transferred will travel to the new location as per the Domestic Travel Policy entitlements.

In case the dependents are also relocating on account of the transfer, the company will bear the travel expenses from the current location to the transferred location as per the employee’s travel entitlements.

The employee must prepare a “Handing Over” report providing details of existing mandates, current status, list of counterpart officials with contact telephone and fax numbers, e-mail addresses etc to the supervisor in the old location before relocating.

The employee must clear pending dues and reimbursements at the old location before relocating to the new location.

Preliminary visit

The company will provide for the employee, his/her spouse and children to make a preliminary visit to the transferred location before the actual transfer, to enable them to make housing arrangements, identification and admission in educational institutions or any other personal tasks. The duration of such stay will be up to 5 days. This period will be exclusive of the annual paid leave of the employee. The mode of travel to the new location and local travel in the city for such a visit will be as per the employee entitlement in the Domestic Travel Policy.

The employee and his family will be expected to stay in the company guesthouse, however in case of

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non-availability of the guest-house, alternative arrangements will be made as per the employee entitlement. He also has the option of making his own arrangements (stay at relatives / friends) and claim Per Day as per Domestic Travel Policy and may claim 50% of his/her Per Day entitlement for each member of family, above the age of 12 years, accompanying him. In case the employee wishes to stay beyond 5 days, he/she must bear the board and lodging expenses as applicable. In case of guesthouse accommodation, the prevailing charges will be charged (Currently @ Rs. 100.00 per person per day exclusive of meals laundry expenses). Stay beyond 5 days will be counted as paid Leave and will be at the cost of the employee.

Housing For an initial period of 15 days, the employee and/or dependents will be accommodated in the company guesthouse in the transferred location on company expense, however in case of non-availability of guesthouse, alternative arrangements will be made as per the employee travel entitlement. Expenses apart from stay will be borne by the employee.

Asset Relocation

The Company will retain and bear all costs towards packing, loading, transporting, unloading, unpacking, insurance, Octroi /Entry tax and clearing of resulting packaging waste etc.

The cost of one truckload of personal effects, as prescribed by the company, and one personal vehicle will be included.

The company will also reimburse the cost of carrying personal valuable belongings up to 100 kg by air.

Reimbursement of cost in case of resignation In case the employee resigns from the employment within six months of transfer, the company reserves the right to deduct the expenses incurred on his/her preliminary visits, Relocation expenses, local conveyance, etc. from his/her final settlement.

Transfer Grant

The Company recognizes that the employee and his family will undergo considerable financial expense with respect to the transfer and relocation. The company will provide a distress allowance to compensate the employee on a one-time payment per transfer basis, as given below;

BAND GRANT FOR RELOCATION WITH

FAMILY GRANT FOR RELOCATION WITHOUT

FAMILY (@33%)

E, D3 & D2 Rs. 1 Lakh Rs.33,000

D1 & C3 Rs.75,000 Rs.24,750

C2 & below Rs.50,000 Rs.16,500

Transfer to hometown and on personal request

In case the employee is transferred to hometown and/or on personal request based on personal reasons, the employee is entitled to an amount equal to the Transfer Grant without family. However, in such cases, benefits such as preliminary visit and the visit by the family every six months between the place of transfer and residence of the spouse and children will be forfeited.

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Documents Required

Transfer Letter

Handing Over Report

Transfer Reimbursement Form

Transfer to foreign subsidiary(s)

Based on the job requirements, ITL’s employees are liable to be transferred to employment of its foreign subsidiaries in UAE &Philippines. The detailed employment conditions would be discussed and finalized on case-to-case basis and approved by CEO.

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Leave

Policy To provide employees with a specified number of leaves on pre-decided festivals/occasions in addition to a number of offs during the year.

Rationale Keeping in mind the value of work-life balance and provide employees with uninterrupted personal time with their family and kin, ITL entitles its employees to specify number of privileged leaves along with weekly offs and holidays.

For convenience the following terms are defined as:

“Working Days” – comprises all working days except for Saturdays and Sundays. “Calendar Days” – comprises all days within the stipulated time inclusive of Saturdays and Sundays.

Eligibility

The policy applies to all employees of ITL.

Entitlement

CATEGORY OF LEAVE NUMBER OF DAYS

Earned / Privileged Leaves 30 working days

Maternity Leave 90 calendar days

Paternity Leave 05 calendar days

Terms & Conditions Entitlement for Earned Leave will be operated on the basis of the financial year, and will be

credited to the employees’ leave account on 1st April and 1st October each year on an advance basis. In case of new entrants, pro rata leave for the current financial year will be credited to the entrant’s account in advance. However, the grant of leave to such new entrants will be purely at the discretion of the concerned supervisor.

Un-availed Earned Leave can be carried forward to the next year, such that the balance of Earned Leave to an employee’s credit shall not exceed 90 days at any time. Confirmed Employees are permitted to en-cash Earned leave in excess of 30 days once in a calendar year, in the month of April of the following year. The amount to be en-cashed would be a multiple of Pay payable as of March of the last financial year and would be liable for Income tax.

Leave Encashment = No. of days* Daily (Basic Pay+ Special allowance+ HRA)

The Company reserves the right to grant additional leave to any employee at its discretion beyond the above limits, as advance leave to be adjusted against future accruals or as Special leave with full or partial pay.

Encashment of leaves will be allowed such that minimum 30 leaves are maintained in the employee’s account.

All leave is to be availed subject to the exigencies of work. The company reserves right in this regard to reject any application. When applying for leave all employees are required to

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submit a leave application duly sanctioned by their respective supervisor. The leave administrator is empowered to automatically adjust leave in case no leave application is received within 10 days of the availing of the leave.

For the period during which an employee is on Leave without Pay (LWP), he will not be entitled to any compensation, this includes salary, annual allowances, retirals, leave accumulation, other benefits/ entitlements and perquisites.

LWP is computed on the basis of calendar days and would include Saturdays, Sundays and Public Holidays.

Employees are not allowed to take leaves during the serving of Notice Period.

Employees, on resigning from the services of the Company, shall be allowed to en-cash the balance Earned Leave standing to their credit subject to their having completed the notice period and after all adjustments.

In the event of death of an employee while in service, the leave salary admissible in respect of Earned Leave standing to his credit would be calculated on the basis No. of days* Daily (Basic Pay+ Special allowance + HRA) admissible while on duty and paid to his nominee/heirs.

Maternity leave with full pay and allowances will be granted for a period of 90 days to a female employee who has completed minimum 80 days in the Company. Maternity leave will not commence earlier than six weeks before the expected date of delivery. In exceptional circumstances with appropriate approvals from the Supervisor, additional unpaid maternity leave could be granted for a future period extending up to 90 days. Female employees would be eligible to claim this benefit for a maximum of two deliveries only. Maternity benefit would not be available for any deliveries in excess of the above. It is further clarified that female employees who have joined services and already have two naturally born children would not be able to claim any maternity benefit during their service tenure with the Company. The Company may, at its discretion, grant leave of any other kind, admissible to the employee in combination with, or in continuation of, maternity leave if the request for its grant is supported by a sufficient Medical Certificate.

Miscarriage Leave: In case of miscarriage or birth of a still born child or medical termination of pregnancy (MTP), the concerned women employee shall, on production of such proof as may be prescribed, be entitled to paid leave for a period of 6 weeks.

Paternity Leave on full pay will be granted to male married employees to take care of his new born baby. Paternity leave benefit will be granted for a maximum of 2 childbirths only. A maximum of 5 continuous days leave will be granted to the employee; however the same needs to be availed within 30 days of actual date of childbirth. Employee is required to notify his Reporting Supervisor before proceeding on such leave.

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Holiday Working Policy

Policy To define the benefit that employees working on a weekend/holiday are eligible for.

Rationale To support employees who may have to work on weekends or other paid holidays due to business requirements.

Eligibility All employees in Band C and below (except A1) based out of ITL offices.

Terms & Conditions

An employee should have taken prior approval from his Reporting manager before working on a weekend/holiday

An employee should have worked for a continuous duration of 7 hours per day to be eligible for a compensatory off

The compensatory off should be availed within 3 months of its accrual, failing which it shall lapse

Compensatory Offs cannot be en-cashed

Procedure For availing compensatory off, employee needs to login to the ERP portal and apply leave under Compensatory Off.

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OTHER BENEFITS

SECTION E

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Perquisites And Benefits Along with the Compensation Structure as extended by ITL, employee also enjoy certain band linked Perquisites and Benefits as a part of their Annual Cost – to – Company Compensation.

These Perquisites and benefits have been extended keeping in mind the personal as well as professional requirements of the employees and to help maintain social status of the employees of ITL.

Company Vehicle Policy

Policy To provide a Company Car and Maintenance Benefit options to eligible employees for all official purposes.

Rationale The Company Car & Maintenance Benefit is provided to employees within the specified limits. This Company Car & Maintenance Benefit is a perquisite and is taxed as per the prevailing Income Tax laws.

For convenience, the following terms are defined as: “Vehicle” - All motor cars/vehicles, exclusive of Commercial vehicles, used by the employees for personal & official purpose. “Conveyance Allowance” - Monthly Allowance given as a part of the employee’s compensation. This amount also forms the “Entitlement” for the Company Car & Maintenance benefit. “Maintenance Reimbursement” - Balance Conveyance Allowance, after deducting monthly lease rentals/EMI expenses, provided as reimbursement to the employee. “Service Provider” - The leasing company(ies) with whom ITL has an agreement to source the vehicles for its employees as per prescribed terms and conditions.

Eligibility

Car Facility: The policy applies to all confirmed employees of ITL in Band D&E. The Company will provide air-conditioned cars to eligible employees for discharging/performing their official duties. An employee eligible for a company vehicle may, either, -Opt for a fully Company maintained vehicle, or - Avail of an all-inclusive Vehicle Allowance, These options are as described hereafter: 1. Company Maintained Vehicle: The Company would provide a fully maintained car where running, maintenance and insurance expenses incurred on these cars would be borne by the Company.

a. The nominal band-wise eligibility for cars would be as decided by the Competent Authority from time to time.

b. Fuel will be provided by the company within the limits as indicated below. These limits would

be operated on a financial year (April-March) basis, with no carry-forward. There would be no monetization of unused entitlements, and all usage in excess of these limits would be billed to the employee’s personal account.

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BAND MUMBAI/DELHI (LITRES PER MONTH) OTHER LOCATION (LITRES PER MONTH)

E 225 200

D3 200 150

D2 & D1 150 100

a. The valuation of the car perquisite will be as per the Income Tax rules in force.

b. For all employees of the band of Vice President and above reimbursement of expenses for

personal drivers would be made as per rules in force. Company Maintained Vehicle – Model Eligibilities

BAND PURCHASE COST RANGE

E2 & E3 Not greater than 25 lacs *

E1 Not greater than 20 lacs *

D3 Not greater than 16 lacs *

D2 & D1 Not greater than 14 lacs *

*Subject to competitive quotes provided by ORIX/ similar competent agency depending upon the model. All prices are with the company registration, on the road prices.

Vehicle Allowance

a. Under this Scheme, no vehicle, fuel or driver facility would be provided by the company; the employee would need to make his own arrangements for vehicle, its running and maintenance, and driver, if applicable.

b. The employee would be eligible to avail of a lump-sum all-inclusive taxable Vehicle Allowance at the rates given in the table below:

BAND VEHICLE ALLOWANCE (RS. PER MONTH)

E 55,000

D3 50,000

D2 45,000

D1 35,000

c. This Allowance is to cover all costs relating to the provision, running and maintenance of car and/or driver. Apart from this Allowance, no other facility, payment or reimbursement of any kind would be made by the Company. d. An employee who is currently in the Company Vehicle Policy has the option of switching over to the Car Hire Policy at any given point in time. However such a right can be exercised only once.

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Car Hire Policy

This policy is currently being reviewed by external consultants. The same will be published after final review.

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Furniture & Assets

a. This scheme is available only to the Band E, to help them maintain a certain standard of living, the Company will purchase and provide certain items of furniture, household appliances, and other assets (F&A) to employees for their use at their residences, subject to the following monetary limits:

b. All assets purchased under this Scheme by these employees would be on a compulsory buy-

back basis at the written down value in the books.

c. Employees would be eligible to choose items from the list provided hereafter. Employees may also choose the designs and patterns that they wish. However, existing items or items purchased prior to becoming eligible or prior to joining the company cannot be covered under this policy.

d. The following is the list of permitted items. All items indented by the employee would be purchased subject to review/approval by the CEO.

Furniture

Sofa Set with Centre Table and side tables /Arm Chairs /Puffies / 4/6 seater Dining Table with chairs / Food Trolley / Sideboard / Wall / Storage units for crockery,

music systems and computers / Study table with chairs / Double Beds / Single Beds/ Bedside Tables/ Easy Chairs/ Movable Storage Units / Wardrobes / Cupboards / Movable Almirahs / Sideboard/ Movable kitchen cabinets/ Bathroom cabinets

Household Appliances

Storage Geyser / Refrigerator / Air conditioner / Desert Cooler / Fans / Washing Machines / Vacuum Cleaners / Cooking Range / Microwave Ovens / Convection

Ovens/ Exhaust Fans / Exhaust Chimneys / Generators/ Inverters/ Voltage Stabilizer / UPS/ Transformer / Food Processor / Water Purifiers /Room Heaters / Blowers

Computers and Peripherals

Desktop Computer & Printers (configuration to be approved by TeSG Department)

White Goods( entertainment/ communication)

Specified electronic items such as Television Set / Audio Systems / Home Theatres/ VCRs/ CD/ VCD/ DVD/ players, Cordless, Telephone /Answering machine/ Fax

machine (but excluding Cell Phones, Car Stereos, and all such items which do not constitute household appliances)

e. For all the Goods as shown above, the employee would have to sign an undertaking to buy-

back the goods at the time of purchase. The buy-back would be at a written-down-value as may be determined by the company.

f. All items have to be necessarily located at the residence of the employee and are subject to inspection at any time.

BAND MAXIMUM SERVICE ENTITLEMENT (AT PURCHASE COST)

E Rs.5,00,000

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g. The employee has the choice to purchase any assets currently provided to him at any time. Such purchase would be at the WDV as determined by the Company. In this event, his entitlement would be restored to the extent of the original cost price of the asset. Any incidence of Income Tax arising out of this will be borne by the employee.

h. The policy regarding maintenance / repair / refurbishment of company assets purchased under this scheme are provided in the Repairs Policy (to be worked out). As per this policy, all repairs/ renovation/ refurbishment of any furniture & appliances that are provided by the Company have to be undertaken by the employee on his/her own account. The sole exception to this is the annual air conditioner maintenance contracts, if such exists.

i. The Appropriate Authority may permit the employee to purchase more than one item in each type, provided always that the assets are installed at the residence of the employee only. More than one item of the same type would be provided with specific approvals of the CEO.

j. The acquisition / purchase of furniture / household appliances shall be done by administration department of ITL. Employees will give their requirements, supported by a proforma invoice to administration department of ITL, who will be at liberty to procure the items at the lowest cost available to them. For all items of furniture and household appliances, payments would be made directly by the Company to the vendor / supplier unless otherwise approved by the CEO.

k. In case of the enhanced limits at the time of promotion, employees may indent for items within the differential, which would have to be acquired afresh by ITL’s administration department. In cases of divestment of a certain item, either by buyback by employee or if administration department certifies the item to be beyond economic repair, the employee’s entitlement would stand restored to the extent of the original purchase cost of those assets.

l. Irrespective of the amount, each purchase under this category would have to be approved in advance through a standard capital expenditure procedure which will be done by ITL’s administration department.

m. In case the employee moves to another accommodation for any reason, he will have to take the movable furniture and household appliances purchased for him/her to the new place of residence. Insurance and transportation charges for the furniture will be borne by the company. As per the current Income Tax Act 1961, 10% of the cost of furniture and household appliances purchased would get added to the taxable income of the employee as the value of the perquisite. Additions in the form of immovable fittings in the accommodations provided to an employee will not be considered as part of this entitlement or as part of the calculations for perquisite value under the current Income Tax rules.

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Housing Loan Interest Subsidy

INTEREST SUBSIDY SCHEME ON HOUSING AND HOUSE RENOVATION LOANS The Company will provide employees with the Interest Subsidy on the Home/Home Renovation Loan for one residential unit only.

Applicability a) This Interest Subsidy Scheme shall apply to confirmed employees in Band D and above. These rules are subject to replication/modification/alternation from time to time at the discretion of the CEO. The said rules would be in conjunction with the stipulations as brought out in the Letter/Contract of Appointment.

b) The Home/Home Renovation Loan may preferably be availed by an employee from any of the following Financial Institutions/Banks:

1. HDFC 2. Axis Bank 3. SBI 4. ICICI 5. HSBC 6. LIC 7. IDBI

In case an employee avails Home Loan from any Financial Institution/Bank other than listed above, prior approval will have to be obtained from the CEO. However, the final decision to approve or reject the same would be at the discretion of the Management. HDFC Floating Rate of Interest will be the maximum ceiling to calculate the Interest differential. If the rate of interest obtained by the employee from the lending bank/financial institution is lower than HDFC floating rate of interest then the lower rate of interest will be applicable. However, no additional payment will be made on account of the low interest rate obtained/borne by the employee. c) For loans obtained from banks/financial institutions other than HDFC Ltd and Axis Bank, the EMI will not be deducted from the employee’s salary by the Company and the same will have to be paid directly by the employee. d) Under no circumstances will IL&FS act as a guarantor for any loan entered into by an employee.

Eligibility

a. Only confirmed employees are eligible for Interest subsidy as provided hereafter. This would be at the absolute discretion of the CEO, who is authorized to take final decisions regarding any or all of the terms and conditions governing the policy.

b. The Housing Loan Subsidy benefit is applicable for:

1. Purchase of one residential unit (can be inclusive of adjoining flats)

2. Purchase of plot of land (can be inclusive of adjoining plots) with construction cost

3. House renovation purposes

c. The housing loan can be availed by the employee jointly along with his/her spouse, parents or children. However, the interest subsidy benefit will be based on the declaration submitted by the employee at the time of application that his spouse, parents or children is/will not benefit

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from a similar scheme administered through another Company.

d. In case the employee declares that his/her spouse, parents or children are claiming a similar benefit, then the interest subsidy payable to the employee will be in proportion to the interest borne by the employee.

Interest Subsidy calculation The difference between HDFC Floating Rate of Interest and the ITL rate of interest @2.5% will be paid to the employee as “Interest Subsidy” in the monthly salary as a taxable allowance. Interest Subsidy payment will be reviewed on completion of each financial year, based on the actual interest paid by the employee. Any excess/arrears payment, will be recovered/paid from the Interest Subsidy payable in the subsequent financial year. HDFC Floating Rate of Interest will be the maximum ceiling to calculate the Interest differential. If the rate of interest obtained by the employee from the lending bank/financial institution is lower than HDFC floating rate of interest then the lower rate of interest will be applicable. However, no additional payment will be made on account of the low interest rate obtained/borne by the employee. At any point of time, if the bank interest rates reach beyond 11%, the employee will have to take the additional tax implications as his/her responsibility.

Specific conditions pertaining to Interest Subsidy for Housing loans

a. The maximum eligible amount for Housing Loan Interest Subsidy shall be the lower of the following conditions as described below: i. Loan Amount: The Loan amount disbursed by the lending Bank/Financial Institution ii. Monetary Cap (as per chart below):

BAND MONETARY CAP (IN RS LACS)

E2 & E3 200

E1 125

D3 75

D2 60

D1 50

b. Change in the loan plan, viz, tenor, EMI etc., by the employee.

The CEO may grant, only once and within two years from the date of commencement of the interest subsidy benefit, an incremental interest subsidy, subject to the overall eligibility limit.

Specific Conditions pertaining to Interest Subsidy for House Renovation loans The maximum eligible amount for House Renovation Loan Interest Subsidy shall be the lower of:

The Loan amount disbursed by the lending Bank/Financial Institution

Rs. 2.0 lakh

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Documents to be submitted for claiming the Interest Subsidy for Housing & House Renovation loans

The following documents are to be submitted to HRD for claiming the Interest Subsidy in the monthly salary:

1. Copy of the Home/Home Renovation Loan Subsidy application (duly approved by the Department Head).

2. Copy of the loan agreement between the employee and the lending Bank/Financial Institution.

3. Copy of the Amortization schedule.

4. Copy of the provisional Principal and Interest certificate for the current financial year.

5. Letter confirming the outstanding loan balance, Rate of Interest and EMI as on 1st April of every financial year, duly sealed and signed by the lending Bank/Financial Institution to the HR department. It should reach HR department at the end of each financial year and not

later than 15th

April of the following financial year.

6. It is the responsibility of the employee to complete in full all documentation requirements to the complete satisfaction of the Company. The Company shall have the right to recall the Interest Subsidy at any time, and also to invoke penal provisions, including levy of penal interest, in case of continued non-compliance with any of the terms and conditions of the loan document deficiencies.

7. The subsidy benefit will be effective from the date/month of disbursement of the loan by the Bank/FI, provided the application for interest subsidy along with all the documents are submitted to HRD within 30 days from the date of disbursement of the loan. All the

documents should reach HRD before the 15th

of the month for payment in the current

month’s salary. In case of documents received after the 15th

of the month the subsidy will be paid in the subsequent month.

Procedure

a. The employee shall get in touch with any of the above banks/financial institutions for completing the necessary documentation/formalities for sanction of the housing/home renovation loan.

b. The employee shall complete all procedures required by the Housing Finance agency, and approach the HR department after part/full disbursement of the loan for availing the Interest Subsidy benefit.

c. The employee shall fill the Interest Subsidy Application form, get it approved by the Department Head and send it along with the loan details to HRD for further process.

d. In order to authorize EMI deduction through salary* (optional), and for payment of Interest Subsidy a letter authorizing deduction of EMI from the monthly salary and remitting it to HDFC/Axis Bank (not required if the loan is taken from any other bank/financial institution) should be submitted to the Accounts department with a copy to the HR department.

e. Deduction of EMI will be done for employees who have obtained loans from HDFC and Axis Bank only.

General terms & conditions a. The Home Loan subsidy shall be discontinued if the employee repays the loan prior to the

expiration of the Home Loan Subsidy Agreement.

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b. In case of any change in the loan program viz. pre-closure, part pre-payment of the loan etc.,

the employee has to inform the Company immediately of the same and submit a copy of the documentation to HRD and Accounts. In case of non-compliance, the excess subsidy interest will be recovered from the employee’s subsequent salary.

c. The processing fee @ 0.5% of the loan amount will be borne by the Company.

d. The interest subsidy will be paid as part of the monthly salary and will be governed by the prevailing taxation laws.

e. In case of transfer of employee to another IL&FS Group company, the policy, if applicable, will be as per the rules of the new company.

f. In case of separation of employee, due to any reason, the Interest Subsidy benefit will be terminated from the date of separation.

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Long Service Award

Policy The Long Service Award recognizes the services and commitment of employees who have been with ITL for a long term.

Rationale ITL honors employees who have shown commitment and dedication and achieved significant milestone years of service.

Eligibility

Employees who complete 3,5,10, 15 & 20 years of service join the club of Long Service Awardees.

Entitlement The employee will be conferred with a Certificate of Long Service and a memento as a token of appreciation

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Marriage Gift

Employees of IL&FS Technologies who get married would be eligible for a Gift Voucher of Rs.4,500/- at the time of their marriage on submission of their wedding invitation card.

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Medical Benefits

Policy

To provide financial and administrative assistance to employees and their dependents for their medical and health related requirements.

Rationale ITL extends a variety of reimbursements and insurance policies for the welfare and benefit of the employees to cater to their health related requirements. Keeping the well being of the employee and their dependents in mind ITL provides the following benefits:

a. Group Personal Accident Policy

b. Group Term Life Cover Policy

c. Group Medi-claim Policy

Eligibility The policy applies to all confirmed employees of ITL. The policy also considers management trainees while extending the support.

a. Group Personal Accident Policy

The Company has availed a Group Personal Accident (GPA) Policy coverage from a Life Insurer for its employees for providing adequate financial coverage, in the event of an unfortunate “Partial or Total Disability (both temporary & confirmed)" or "Death" of the employee concerned. The aggregate maximum Coverage is up to five (5) times of the Annual CTC of the Employee at the time of joining the Company or at the time of renewal of policy as the case may be.

b. Group Term Life Cover Policy

The Company has availed Life Insurance Policy coverage from a Life Insurer for its employees. Under this policy the company will pay a Death Benefit in the unfortunate event of death of an employee. The aggregate maximum coverage is up to three (3) times of the Annual CTC of the employee at the time of joining the company or at the time of renewal of policy, subject to a minimum of Rs.5 lacs as the case may be.

c. Group Medi-claim Policy All employees and their dependents, subject to a maximum size of four persons will be covered under this policy with effect from the date of the employee’s joining. Definition of Dependent: Spouse and 2 dependent children. Medi-claim Policy benefits Limits as per Bands:

BAND VALUE PER FAMILY

MEMBER (INR – LACS)

E

1.00

D

C

B

A

Coverage: Maximum 4 (Self, Spouse & 2 dependent children); Either parents /In-laws can be covered under this with additional premium borne by the employee.

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Overall mediclaim limit will be No. of members (including parents if added) multiplied into per member value.

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Medical Health Check-Up

Policy ITL provides financial and administrative Assistance for Regular Medical Health Check up for all employees.

Rationale Keeping the well being of the employees and their dependents in mind and to reduce the risk of illness through early detection and preventive medical evaluation and advice, ITL offers all employees to undergo a comprehensive Medical Health Check – up on a periodic basis. The terms used in the policy are defined as under: Dependents: Dependents include spouse, dependent children (below the age of 24 or till marriage whichever is earlier), and dependent parents.

Eligibility The policy applies to all confirmed employees of ITL.

Entitlement

AGE BELOW 40 YEARS 40- 50 YEARS ABOVE 50 YEARS

FREQUENCY Once in a block of three yrs

Once in a block of two yrs

Annual

ENTITLEMENT (RS.) PER PERSON

3000 5000 5000

The cost of the medical checkup will be reimbursed by the company as per the entitlements mentioned above.

The above entitlements are limits established per person for Health Check-up for Self.

Employees may claim reimbursement against Medical check-up for dependents once in every three years. Reimbursements will be per person as per the entitlements provided for each age group.

Terms & Conditions All employees must undergo Medical Health Check – up Employee may claim

reimbursement against Medical Health check-up as per the age group of the self and dependents.

Company will reimburse expenses against Medical Health Check-up of dependents once in every three years.

For the purpose of reimbursement, individual’s age will be calculated as on April 1st of each financial year.

Employee must submit all bills of the Health Check up of self and dependents (if any) together for reimbursements.

The employee may choose hospital tests other than specified for the check up, however, the amount disbursed will be as per the entitlement mentioned above.

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All charges for further investigations and tests will be borne by the employee and may be claimed under Mediclaim Reimbursement/Insurance if applicable.

The Medical Health- check up facility is a benefit provided to address the well being of the employees and their family members and cannot be monetized.

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Salary Advance

An employee may take Salary Advance with the approval of the CEO/Service Delivery Head up to a maximum limit of three months’ Basic Pay + Special Allowance, to be recovered in a maximum of 12 monthly installments. Salary advance will be free of interest, and may be availed for unavoidable exigencies only.

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Employee Referral

Policy ITL will pay a referral incentive to employees who refer their friends to various positions within the organization and get subsequently employed with ITL.

Rationale The policy aims to encourage ITL employees to refer suitable candidates from within their social network.

Eligibility All confirmed employees of ITL may refer suitable candidates.

Referrals of former employees will not be considered.

A referral hired must be a regular employee.

Entitlement Employee is entitled to a Buddy referral incentive once his/her hired referee completes 6 months of service with ITL. Buddy Referral incentive will vary from experience level to skills required for the position.

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Certification Re-imbursement

Policy ITL will look to reimburse Certification Test Fee of courses undertaken by its employees.

Rationale To encourage employees to obtain professional certification in identified areas, as decided by the Company, by extending financial assistance.

Eligibility All confirmed employees are eligible to apply for Certification reimbursement.

Entitlement 100% of the fee amount will be reimbursed on successful completion of the certification. This facility will be available to employees who look to renew/upgrade their expired/current certifications. The employee will have to sign an undertaking that he/she would continue for a minimum period of 18 months after the certification completion, else the certification fee would be recovered from the employee’s full and final settlement.

Procedure Employee will send a Certification Request Form to his/her Reporting Superior for obtaining approval for certification. Once the request is approved, the employee may appear for the exam by paying the required amount. On submission of test results the employee can apply for reimbursement.