‘COAL INDIA LIMITED 10, 9.5 Read, Kolketa-700001 No. GIL! Pers! PRP/ w041/7./G, Date : 16.41.2011 OFFICE MEMORANDUM Sub: PAYMENT OF LUMPSUM RECOVERABLE ADVANCE Approval of Board of Directors is hereby conveyed for payment of lump sum Tecoverable advance for financiel years 2007-08, 2008-09 and 2009-10 to Beard level ‘and below Board level executives of CIL & its subsidiaries. As and when the MOD Tatings of the Companies for 2010-11 are approved by OPE, advance payment as per the prescribed methodology would also be released to the executives. Fer arriving at the quantum of amount payable, it hes been advised to calculate Performance Related Pay (PRP) amount payable to the individual Executive for the years. 2007-08, 2008.09 & 2009-10 as pet the, methodology recommended by Remuneration Committee in its meeting held on 6" Feb. 2010 and pay 75% of the amount as lump sum recoverable advance Pursuent to above, the amount of recoverable advance payable for the years 2007-08, 2008.09 and 2008-10 will be derived based on the following gui¢elines/paremeters a} ‘The payment will be made to such of the Executives, who were on the 10ll of the Company as on *® April 2007 and continue to do so as on 1 November, 2011 b) Executives who have superannuated are not eligible for the advance. ©) Incase of Executives who are likely fo superannuate shortly, the advance pald Wil be adjusted against terminal benefits due to them, d) Those Executives who joined the company after 1* April 2007 will ke paid the recoverable advance on pro-reta basis based on their service during the period under consideration. ¢) Management Trainees are also eligible for payment of advance. f) In case of promotionidemotion to higher / lower grade during the above period the payment would be made on pro-rata basis for the service rendered in the relevant grade, In case of nor-executves promoted 10 the Executive cadre Surng the period , the payment would be made on pro-rata basis. 4g) For those Executives under suspension, no advance would be paid. hy CIL’s MoU rating will be eppticable to RSOs, Delhi Office, NEC and IICM ') As regards oxcoutives transfer‘ed ftom one subsidiary company te the other, payment of advance will be made from the present place of posting on the basis of data to be made aveilable by the company where the Executive wes posted earlier Contd .2 Kei Methodology for calculation wil be as illustrated bolow: ‘Amount payable to individual executive will be based on the formuta AX Mx Ex@xRx P whore, A= Annual revised Basic Pey for yoare 2007-08, 2008-09 & 2008-10 M=NOU rating of GIL and its subsidiaries (Excellent-100 %, Very Good -60% ‘Good-50% and Fair - 40 %) E = Percentage applicable to Performance Retings of Executives in 2007-08, 2008-09 & 2009-10 G = Grade Incentive ( % of Basic pay) of the Executive R= Ratio of required amount to available ammount, The ratio of required emount to aveilable amount for the years 2007-08 and 2009-2010 are ‘1’ . For the year 2008-09 “Ris 0.66" because of dip in Profit Before Tax (PBT) thereby impacting the ratio of PBT of 2007-08 & 2008-08 P for the year 2007-08 is 60 ‘% being the base yeer. P for 2008-09 is 60 % as there was ne ineremental profit and P for the year 2009-10 is 400 % due to incremental profi. ‘Actual MOU ratings of CiL and its subsidiaries, Percentage applicable to executive Evaluation Ratings end Grade incentive along with llustrations for saleulation are enclosed as Annexure ~1(4 pages). The payment may be released as soon as possible. This iesues with the approval of competent authority. CBr crennl, (Dr Sanjay Kumar ) 5-77-20) General Manager(Personnel) mt Encl. ala tribution Chairman-cum-Managing Director, BCCL/ ECL/ GCL /SECL/WCL/MCL/ NCLJCMPDIL Drecior(Tech)/Director(P&IR)Director(Finance)/DirectorMKIgi/CIL, Kolkata, Drector(FiMPYOICTIRDAT), BECUECLICCUSECLWCLIMCLINCLICMPDIL Chief Vigliance Officer, CIL, Kolkata ED(S8R), CIL,KolkataiED, ICM, Ranchi CGMITS to Chairmen, CIL, Kolkata CGM.NEC.Margherits CGM(SEN),CIL Kolkata Ghiel Generel Maneger(Finence) CIL, Kolkata Goneral Manager(System).CIL.Koketa General Manager(P/PC),CIL, Kolkata General Manager, CIL, New Delhi General Manager(Telecom)CIL Kolkata-with a request to upload in CIL website AILRSMs, CIL. TS to Drector(P&IR),CIL KolkataANNEXURE -1 AGTUAL MOU RATINGS OF GIL & SUBSIDIARIES l 2007-08 2008-08 2008-40 Compan [ot {Excellent Excellent Excellent [eck Fair Fat Very Good CCL Very Good Very Good | Excellent (oct ~ Very Good Very Good | Very Good | [Not Excellent Excellent Excelten ‘Wel Excellent Excellent Excellont SECL__|~_ Excelent Excellent MCL Excollent _|_Very Good |_Excellent MPIC Excellent | __Excellent Excellent PERCENTAGE APPLICABLE TO EXECUTIVE EVALUATION RATINGS % to be taken for calculation ~Excalient 100. Commendable 80. ‘Adequate 60 inadequate o =| GRADE INCENTIVE f Grade incentive (% ) MVE 03 40% c E4 to ES L 50%. 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