Nomination & Remuneration &

Compensation Committee - Review of

Performance

Date: 12th August, 2019

Name: Mr. Anil Khanna

Designation: M.D. & Group CEO

49
 NAME OF EMPLOYEE Anil Khanna
DEPARTMENT Managing Director & Group CEO
CTC CRS.) 9,00,00,000
DATE OF JOINING 25-01-2019

Brief Profile:

Mr. Anil Khanna has joined Vakrangee as Managing Director & Group CEO w.e.f.
25th January 2019. Prior to Vakrangee he has been at the position of Managing Director
of Blue Dart Express Limited with effect from 21st February 2007. He has a proven track
record and is well experienced to lead Vakrangee.

He has 40 years of experience in various industries and has been with Blue Dart since
1992 and he moved to the position of Managing Director since 2007.

He is a graduate from St Stephen's College, Delhi and holds an MBA degree in Marketing
and Finance from UBS, Chandigarh.
Key Result Area of Managing Director & Group CEO

Managing Director & Group Chief Executive Officer (CEO) key _responsibility is to ensure
that all aspects of the business are aligned with Vakrangee's corporate vision, goals and
objectives. Prepare a long term business plan for the entire company in alignment with
the Vision and Business targets as proposed to the Shareholders of the company. He
would report to the Chairman and the Board of Directors.

Achievement of the Organizational Targets: He would be primarily responsible for the

achievement of the company's targets pertaining to the achievement of quarterly
Vakrangee Kendra footprints, quarterly & Annually.

Serviceable and fully functional Kendras - Ensure that all the serviceable Vakrangee
Kendras are enabled to provide the full range of services offered by Vakrangee.

50
Business Revenue & Profitability Targets: He would also be responsible for the overall
revenue and profit targets to be achieved month on month & year on year.

Ensure that all corporate governance norms are followed and complied with.

Monitoring - Continuously monitor all Verticals and departments to ensure alignment

with the Vision, Business Targets, Organizational Policies and Integrity standards of the
Vakrangee Group.

SOP driven organization - Ensure that all operations at Vakrangee are driven
methodically via the implementation of Standard Operating Procedures (SOP).

Provide guidance and leadership to the entire senior leadership team such that they are
enabled in all aspects to deliver on the Vakrangee Vision and Business targets.

Stay Updated of any changes in technologies, Business Partner requirements, global and
local economic conditions to ensure Vakrangee's long term strategy and operational
plans are on track to achieve the Vision and Business Targets.

Activation Services- Ensure that all serviceable Kendras are active for all the services in
all the Nextgen Vakrangee Kendra within the stipulated time.

Kendra Performance Targets- Ensure that the rural & urban Kendras meet the
respective performance targets.

Quality Assurance and Risk Management- Ensure the highest quality of services and
regulatory compliance and also establish risk management controls in all aspect of the
business.

Revenue targets - Achievement of the overall revenue and profit targets (monthly /
quarterly and annually).

Relationships Management/_ New Partners - Ensure high levels of satisfaction from

customers, franchisees and business partners, Onboarding New Partners.

51
Adherence to the Moral Code of Conduct of the Company - It is the responsibility of the
MD and CEO to ensure that the polices of the organization is followed by all employees
and he shall be driving this culture at his level. The violations if any that come to him
shall be dealt with firm action. The basic idea of this is if an employee is into substance
abuse ( alcohol, narcotics, drugs) then the performance / concentration of the employee
would not be 100% the next day, Therefore to promote a clean and drug free work
culture we have a set policy on various code of conducts.

Key Performance Indicators of the MD & Group CEO

• Vakrangee Kendra Opening of Outlets: Target vs Achieved

• Ensuring Activation of Services: Target vs Achieved

• Overall Revenue and Profitability: Target vs Achieved

52
THE ASSISTED DIGITAL CONVENIENCE STORE

VAKRANGEE LIMITED
PERFORMANCE REVIEW
August 12, 2019
53
 VAKRANGEE– JUNE QTR UNAUDITED ESTIMATE OVERVIEW

PARTICULARS Rs. In Lakhs

Income from Sales & Services (Vakrangee Kendra ) 4137.4
Other operating Income-kit 703.9
Total Income from Operation 4841.4
Total Expenditure
Cost of Sales / Services 3711.8 Operational Loss in
Staff Cost 2580.0 the core kendra
General Adm & Selling Expenditure 1074.4 segment
Depreciation 320.8
Profit from Operations before Other Income, Interest & Tax -2846.6
Profit before Interest & Tax -2846.6
EBIDTA -2525.7
Profit after Interest but before Exceptional Items -2846.6
Profit Before Tax (Vakrangee Kendra) -2846.6

Supported through
Income from Sales & Services (Other than Vakrangee Kendra ) 7836.7 Non Kendra
Cost of Sales / Services (other than Vakrangee Kendra) 5436.0 segment Income &
Profit before Tax (Other Than Vakrangee Kendra) 2400.6 Other Income
Other Income / (Loss) 2000.0
Total PBT 4452.2
2
54
 EXPENSES OVERVIEW – MR. ANIL KHANNA

Particulars In Rs. Lakh

Total Quarterly Salary Expense – March Quarter 139.1
ESOP Expense for March Quarter (Part of Staff cost) - Mr. Anil Khanna 473.2
ESOP Tax Expense for March Quarter - Mr Anil Khanna 165.6

Total Quarterly Salary Expense – June Quarter 187.5

ESOP Expense for June Quarter (Part of Staff cost) - Mr. Anil Khanna 662.4
ESOP Tax Expense for June Quarter - Mr Anil Khanna 231.9
Total Salary & ESOP Expenses in P&L Till Date - Mr. Anil
1859.7
Khanna

The recurring expense cost is around ~Rs. 10-11 crore per quarter on
behalf of the Salary and ESOP expenses for the Managing Director &
Group CEO.
55
 VIOLATION OF CODE OF CONDUCT – MR. ANIL KHANNA

Reference to the HR Policy Manual page 42 para 4,

• Company has a moral code of conduct whereby Employee should refrain from
consuming Liquor, Tobacco & non vegetarian food while on duty or office
tours and then claiming these bills as company expenses is not permissible.
This is explained in the HR Manual of the Company.

• It has been observed that Mr. Khanna has been consuming liquor and non
vegetarian food during Investor Meets and claiming as company expenses
which is a violation of the code of conduct of the organization. He being a
leader has to lead by example. Therefore, hereby it is requested to refrain
from such instances in the future.

56
 VAKRANGEE– SEPTEMBER QUARTER TARGETS
PARTICULARS Rs. In Lakhs
Income from Sales & Services (Vakrangee Kendra ) 10456.6
Other operating Income-kit 6021.9
Total Income from Operation 16478.4
Total Expenditure
Cost of Sales / Services 12,632.8
Staff Cost 2,600.0
General Adm & Selling Expenditure 900.0
Depreciation 400.0
Profit from Operations before Other Income, Interest & Tax -54.4
Other Income / (Loss) 2000.0
Profit before Interest & Tax 1945.6
EBIDTA 2345.6
Interest / Financial Charges -
Profit after Interest but before Exceptional Items 1945.6
Profit Before Tax (Vakrangee Kendra) 1945.6
Tax Expenses 912.8
Profit after Tax (PAT) 1032.8

57
 VAKRANGEE– SEPTEMBER QTR TARGETS - OPERATIONAL

Franchisee Appointment Targets July August September Total

No of Bronze Outlets - Agreements & Kits Sale 1000 2000 2000 5000

No of Silver Outlets - Agreements & Kits Sale 300 600 600 1500

No of Operational Outlet Targets July August September Total

No. of Operational Outlets (New NextGen during

500 1500 1500
quarter)

No. of Operational Outlets Pilot Phase NextGen 3504 3504 3504 3504

58
 VAKRANGEE– SEPT QTR TARGETS – REVENUE PER OUTLET

Estimated Revenue per outlet Target for Existing Nextgen outlets –

3504
Sr. No. Particulars
July, 2019 August, 2019 September, 2019
E-Governance
A
(Excluding UIDAI & E-Mitra) 2,063 2,550 4,938
B Banking Services
8,150 11,125 13,250
C Insurance
1,011 1,506 1,506
D ATM Business
18,125 24,375 28,750
E-Commerce* (includes GMV of
E
Mobile recharges / Augmont) 15,775 19,275 19,275

F Financial Services
1,094 2,188 6,288
G Logistics
3,000 3,000 3,000
Total 49,217 64,019 77,006

59
THANK YOU

60