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 II Car policy

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

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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)

Tata Motors Company Car Policy

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

2. Nature of business the company is in low capital expenditure vs high capital expenditure lease vs 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 which we operate, best in the products we deliver, and best in our value system and ethics. Tata Motors has earmarked Rs 3000 crore to Rs 3500 crore (USD 662 million- USD 773 million) in annual average 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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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)

4.1. Under this scheme eligible employee can avail of a leased car for official duties . For this purpose, the company 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 rentalized includes the following: 4.3.1. 4.3.2. 4.3.3. 4.3.4. Ex-Showroom Cost of the car Registration Fees Insurance Octroi and other taxes.

However, the minimum amount that would need to be rentalized is the Ex-Showroom cost of the vehicle. 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 a model 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 the form of Proforma Invoice. 5.3. Employee then submits to the Admin Department. an application for joining the company car scheme in the 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 Admin Department. 5.5. Admin gets the approvals from Finance on the Application Letter and retains the original Application Letter and Proforma Invoice for their records. 5.6. Admin intimates the Lease Finance Company vide Authorization Letter enclosing a copy of Proforma Invoice. 5.7. The Lease Finance Company then sends the following to the Admin Department.: 5.7.1. 5.7.2. 5.7.3. Cheque in the name of the Dealer Covering Letter to the Dealer Form 20 for signature of Authorized Signatory
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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)

5.8. Commencement date for the lease period under the scheme shall be the date on which cheque is drawn 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 take the delivery of the car: 5.9.1. 5.9.2. 5.9.3. 5.9.4. 5.9.5. 5.9.6. Cheque in the name of the Dealer Covering Letter to the Dealer Form 20 with approval from Authorized Signatory (CFO) Copy of ABCs PAN Card Companys Address Proof 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 Admin Department. 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 copy of 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 same are indicated in the table below:

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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)

Tenure 2 Yrs 3 Yrs

Resale Value 30 % 20 %

Rental per lac per month (plpm)* Rs 2400 Rs 2250 Rs 1930

5 Yrs 15 % * 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 for under the scheme. However, where premature exit from the scheme is not at the behest of the company, the foreclosure charges / expenses shall be borne by the employee in totality. Instances of premature exit not at the behest of the company are foreseen as, but not limited to the following: 6.1.1. 6.1.2. 6.1.3. Resignations Retirements (including Voluntary Early Retirement) Personal Reasons The working of the foreclosure charges would be as agreed with the Lease Finance Company. In case of foreclosure, value would be arrived at by discounting the balance rentals and the resale value considered in the package. If the leasing company obtains the sale proceeds of the vehicle, the employee will be liable to pay only to the extent the net sale proceeds are less than the foreclosure charges.

6.2

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