HR Policy Manual 20.

Assets at Residence Scheme

1. Objective:
The Assets at Residence Scheme seeks to facilitate / encourage the creation of
assets. The considerations on which the scheme is based are the life of the asset
and the length of unbroken Service of concerned executive.

2. Asset Limit:
2.1 Following is the maximum limit for purchase of Assets as per Assets at
Residence Scheme and the same is applicable for employees in Level L5 or
equivalent and above. This facility can be availed at the location where the
employee is posted or at the location where their dependent family members
are located.
ASSET PURCHASE
LEVEL ENTITLEMENT
L5 50000
L6 75000
L7 100000
L8 150000
L9 200000
DM 275000
GM/ AVP 350000
VP 500000
SVP/ EVP 600000

3. Guidelines to be followed under the Assets at Residence Scheme:

3.1 Purchases can be made only from Registered Dealers who are duly
registered under the Sales Tax laws. All Performa / final invoices should carry
the GST registration number of the dealer. This is necessary since the
Company is liable to purchase tax over and above the amount indicated in the
invoice, in case a purchase is made from an unregistered dealer.
3.2 Under exceptional circumstances, where purchases are made from an
unregistered dealer, for example for the fabrication of furniture by a petty

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contractor, such purchases would require the prior written approval of the
Finance Department. In such a case, the Purchase Tax liability will be added
to the invoice amount for set off against the asset limit of the concerned
Manager/Executive.
3.3 Kindly note that the purchase of Second Hand assets under this scheme, is
not permitted under any circumstances.

4. Buy Back of Assets

4.1 The buyback value of Computers/Laptops and mobile phones purchased
under the scheme will be determined in the following manner:
Life of Asset Years of Service
(Years) < = 5 yrs > 5 Yrs
<1 90% 90%
1 to 2 80% 70%
2 to 3 60% 50%
>3 10% 5%
4.2 It is to be noted that the above applies only to the system unit of computer /
laptop and does not include the UPS and other accessories that may have
been purchased with the computer.
4.3 The buyback value of Assets classified under White Goods, Brown Goods,
etc. (Indicative List as per Annexure 1 under Category 2) purchased as
"Assets at Residence" will be determined in the following manner:
Life of Asset (Years) Years of Service
< = 5 yrs 5 to 7 yrs > 7 yrs
<1 90% 90% 90%
1 to 2 80% 80% 80%
2 to 3 70% 70% 70%
3 to 4 60% 45% 30%
4 to 5 45% 30% 10%
>5 30% 10% 5%

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4.4 On acquisition of asset, the original value of the asset will be added back to
the concerned executive's asset limit.

5. General Points
5.1 For Mobile Phones purchased under Assets at Residence Scheme, the Company
will pay only for the cost of the instrument. The bill should be in the name of Titan
Company Limited.

5.2 Employee has to submit the original Tax Invoice within 15 days from the date
of payment. In case of non receipt of Original Tax Invoice within the above
period, recovery will be made from the employee.
5.3 Assets, such as Mobile phone, Laptop and Tablets are covered under all risk
insurance policiy. All other assets are covered under the fire and burglary
insurance policy.
5.4 An Executive will have to buy the asset from the Company on resignation or
retirement, as per the prevailing buy-back value. This condition will apply to
an asset completing the life as per clause 4.1 and 4.3 of this policy.
5.5 Assets availed under the above scheme for usage and buy back are subject
to Perquisite Valuation as per The Income Tax Act, 1961.
5.6 Buy-back of Assets by the Retiring employee will be governed as per Exit and
Retirement Policy.
5.7 Buy-back value of asset calculated as per this policy will be inclusive of GST.
5.8 Guidelines for purchase under “Assets at Residence” scheme through e-
commerce portals are appended as per Annexure 2 of this policy document.

The above revised policy will come into force with effect from 1st August 2018.

R. RAJNARAYAN
SENIOR VICE PRESIDENT & CHRO

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Annexure – I

List of Eligible assets:

Category 1 (Depreciates in 3 years)

Mobile Phones, Computers including Laptop

Category 2 (Depreciates in 5 years)

i) Home & Kitchen Appliances such as air conditioners, dishwashers, drying cabinets,
freezers, refrigerators, kitchen stoves-Gas Stove / Electric Stove / Induction Stove,
water heaters, washing machines, trash compactors, Vacuum cleaners, Sewing
machine, Water purifier / RO Plants, microwave ovens, juicers, electric mixers,
Ceiling/Wall/Table Fans, deep fryers, food processors, electric kettles, coffee makers,
blenders, Electric rice cookers, toasters, exhaust hoodS, etc.
ii) Hard Furnishings such as Chair, Recliner, Stool, sofa set, Branded Bed/Mattress.
Cot, Computer desk, Dining Table, Coffee table, Bookcase, Cupboard, Safe, Wine
rack, Modular Kitchen, Ladder, etc.
iii) Home Electronics such as TV sets, CD/ Music/ DVD players, camcorders, still
cameras, video game consoles, HiFi and home cinema, UPS with battery,
telephones, CCTV, etc.
iv) Fitness Equipments such Thread Mill, cross trainers, Ellipticals, Stationary Bikes,
Sports Cycles, Golf Kits, etc
v) Musical Instruments such as Keyboard Player/Piano/Guitar/Saxophone
vi) Miscellaneous Items such as GPS (Installed in a Vehicle), Car Stereo, Solar
Heaters, Solar Generators

NOTE: Purchase of any asset not explicitly covered by the list above should have
the Company's (CHRO) prior approval before the purchase is affected.

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Annexure - II

GUIDELINES FOR PURCHASE UNDER “ASSETS AT RESIDENCE SCHEME”

(through e-commerce portals)

For the convenience of our executives and to let employees make the most of
discounts provided by e-commerce service providers, it is now allowed to make
purchase under this scheme from online e-commerce portals viz., Flipkart ,
Amazon, Snap Deal, Urban Ladder, Pepper Fry, One Plus, Tata Cliq, etc., and
employees has to purchase the assets only in India & from designated Online
service providers who should be a Registered dealer (with GST Registration).

The Company may from time to time notify any other service provider wherein
such facility could be availed.

A. Eligibility:

i) Employee can purchase asset within the available limit.

ii) Employees have to purchase the assets as per the list attached in the HR
Policy. If an employee wants to purchase the assets other than the list, the
employee has to take the prior approval of HR Department at Corporate.
However, HR would get the same confirmed from Capex department /
Finance department on the treatment of such items in the books of the
Company as Capital or Revenue.

B. Process:

i) The employee has to route the online purchase through the portal available
for acquiring assets under “AAR” scheme.

ii) Employee would identify eligible asset from respective portals and forward the
screen shot of the product to be availed should be attached on the portal (like
currently being done for a Proforma Invoice) to Corporate/Regional Capex
team along with his/her contract Mobile Number and shipping address.

iii) Corporate Capex department / Regional Commercial / Factory Finance would

ensure that the asset limits and eligibility of the purchase. Then place the
order and communicate the same to the concerned employee.

iv) Flash Sale (Happy hour sale) offered by online sites will not be eligible under
this scheme.

v) Online Purchase have to be done through Registered Website Dealers only

with GST numbers etc.
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C. Payment:

i) Payment would be made by Corporate Capex team or Regional Commercial

online while placing the order.

ii) If there is a price variance, the employee has to be intimated before the
payment is effected and this is also subject to balance available under their
respective Limit.

iii) Company will not make payments for certain costs incidental to the
acquisition of an asset through Online like – Installation charges, Labour
charges, rental charges, connectivity charges, call charges, deposits and
accessories etc.

D. Delivery & Acceptance:

i) The Company will not track the Order booked through Online and it would be
the responsibility of the employee to track the shipping date. Also It would
be the responsibility of the employee to inspect the product at the time of
delivery.

ii) Replacement of Defective Capital goods: If the goods are found to be

defective after the delivery, the employee can use the option of replacement
as per the conditions stipulated by each seller ( 10 days / 20 days ). This
should be intimated to Capex / Finance department at respective locations
within 5 days from the date of delivery to initiate the replacement process
with the seller.

iii) It is very important that the shipping details (delivery point) should be at their
respective residential address and not at the office address except in the
case of Mobile phones, Tablets, Laptop, Kindle book reader. It would be
the responsibility of the employee to take delivery of such exceptions as
listed above. The Company will not take any responsibility to receive and
store the same in the office premises.

iv) It is the employee who should track the order. In case the employee rejects/
fails to take the delivery, his limit would get reinstated only after the refund is
received by the Company.

v) Company will not bear any delivery, demurrage charges etc.

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vi) After online payments are effected by the Company & if the vendor does not
supply the item, Company will not be held responsible and the employee has
to refund the full amount to the Company.

E. Documentation:

i) Invoice would always be in the name of Titan Company Limited with name of
the employee availing this facility. Subject to the balance available under
his / her limit, no further asset purchase would be allowed under Online or by
any other mode of payment.

ii) It is the responsibility of the employee to submit the Original Invoice to Capex
department as & when the product is delivered. The Invoice should be duly
acknowledged as “Received in good condition”, signed, dated & with his / her
employee code.
F. Disclosures:
i) Titan Company Limited (TCL) would subscribe to login credentials of major e-
commerce service providers. Orders are to be through the login credentials of
TCL.

ii) Payments for availing “Assets at residence” facility which are applicable
only for Capital goods in nature and as defined by the Company would be
carried out by Finance / Commercial department through Credit Card. No
cash payments would be permitted.

iii) Online facilities will be available on working days between 10 am to 12.30 pm

and from 2.00 pm to 4.00 pm.

iv) Returns of goods: Once the online payments have happened, employees
have no option to change the product, type, model, colour etc. If he / she
reject the product, he/she has to wait till the refund is received from the online
service provider.

v) Employee need to attach the screen shot of the selected item ( Model /
Colour specification) along with your residential address and mobile
number. This information are to be furnished to your respective Finance
department for further processing of your Capital indent under the above
scheme.
********

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