NAME OF COMPANY

CHENNAI

CORPORATE HUMAN RESOURCE DEVELOPMENT DEPARTMENT

POLICY ON TWO WHEELER

HRD/HRP/002 01/08/2006

1. Objective

To administer and provide guidelines to employees on purchase of two wheelers.

2. Scope and coverage

All employees i.e. probationers and permanent nature and also the employees at
branches are covered under this policy, as detailed below:

a) All employees in the grade M* and above are eligible to apply for
two wheeler.

3. Applicability

This policy will apply to the existing employees and employees who may be
joining or elevated in the above grades / levels, in future.

4. Eligibility

Sl. Grade Vehicle Model Mumbai Other than

No (Rs.) Mumbai
1. M* and M1 Hero Honda Splendour+ 47,000/- 42,000/-
2. M2 and M3 Hero Honda Splendour+ 52,000/- 47,000/-

Registration charges at Mumbai is 3 times more than any other locations when vehicles registered
in company’s name.

* The eligibility prescribed above, is inclusive of all charges viz., vehicle cost,
registration charges, road tax, Insurance, etc. Extra fittings, if any, have to be
borne by the employee only.

5. Procedure

a) The eligible employees can submit the proforma invoice along with requisition,
the model, pamphlets/ brochure to Corporate HRD Department. HR
Department shall initiate and process the same in line with the policy.

b) 100% Payment of the total value of the vehicle shall be made by the
Company in the name of Dealer only, payable at the respective locations to
take possession of the vehicle including the registration charges, road tax
payable, insurance applicable, etc.
c) Employees contribution

(i) M* and M1 Grade: The cost of 38% of the vehicle has to be borne by the
employee, which shall be deducted from his salary / wage in 60 EMIs.

(ii) M2 & M3 Grade: No contribution from the employee

d) An employee can opt for any other model two-wheeler, which may be higher
than the maximum eligibility as per the clause 4 above. In which case, he
shall mobilize the extra money from his own source.

e) In case of employee choosing higher model vehicle, consequential difference

in registration charges, tax, insurance, etc. also to be borne by the employee.

f) The vehicle shall be registered in the name of company initially and be

transferred to the employee on completion of five years. The registration
charges, for transferring the vehicle shall be borne by the employee only.

d) The Original RC book, Insurance policy and other credentials shall be with the
company and the same can be referred to, in case of any requirement.

g) In case of employee leaving the company before the block period of 5

years, cost of vehicle to be paid by the employee shall be computed as below:

(i) M* and M1 Grade: Full value (value means basic price,

regn. charges, insurance, etc.) of the vehicle at the time of purchase
(excluding contribution from the employee at the time of purchase, if
any).
(ii) M2 and M3 Grades

Sl. Age of vehicle (from Buy back value (by the

No date of purchase) employee)
1. > 4 years and < 5 years 20% of the original value
2. > 3 Years and < 4 Years 30% of the original value
3. > 2 Years and < 3 Years 50% of the original value
4. > 1 Year and < 2 Years 80% of the original value
5. < year 100% of the original value

h) Value of the vehicle will be computed as detailed above. The value so

computed at the time of leaving has to be paid by the employee. Employees
have no option to surrender the vehicle to the company.
i) For the purpose of calculating the years, only the completed years will be
taken into account (For ex. if an employee leaves the organization after
putting 2 years & 9 months service, only 2 years will be taken into account).

j) The employee will have to sign an undertaking with reference to the

above.

k) Periodical service and maintenance charges in the first year and

subsequent years, insurance premium from second year onwards, shall be
borne by the employee only. Company may at its interest arrange for
insurance and deduct the same from the salary of the employee’s concerned.

l) At the beginning of the 6th year i.e. on completion of the 5th year, he will
be eligible to apply for a new vehicle under this scheme.

m) If any employee is elevated to the next level i.e. from M1 to M2 grade, he

will fall in line with the procedure as per clause 5 (c) (ii). Hence he will not be
required to pay further EMIs.

n) If an employee is elevated from M3 to M4, he will be allowed to apply for

the vehicle which he is eligible for, as per his grade, provided he purchased
the two-wheeler as per clause 5 g (ii) above.

o) Once the vehicle is allotted, the employee will use the same for all his
official purpose and he will not be allowed to use any other vehicle.

p) In case of transfer to any other location, the actual charges incurred

(levied by railway authorities) shall be reimbursed to the employee by
submitting relevant bills and vouchers.

q) Income Tax liability on account of having the vehicle, if any shall be borne
by the employee.

6. Review and amendment

Management shall review this policy periodically and amendments required, if any
shall be made accordingly.

7. Residual Power

This policy is a gesture of goodwill and the management reserves the right to
withdraw the policy at any time without assigning any reason whatsoever.

8. Effective
The scheme shall be effectively with effect from 1st August 2006

Head-HR Head – Finance CMD

Johnson Lifts Pvt. Ltd

Chennai

Date : ______________

To: Head – HR
Corporate Office
Chennai

Name : Emp.No

Designation: DOJ :

Grade: Location:

Sir,

Sub: Request for Two-wheeler

As per our company policy, I would like to apply for availing a two wheeler.
Enclosed please find proforma invoice and other relevant details of the vehicle,
which I intend purchasing.

I request you to kindly process the same and arrange / facilitate purchasing the
vehicle as per policy.

I also send herewith an agreement duly signed for this purpose.

( )

Encl: Proforma Invoice

Brochure
 (To be executed on Rs.20/- bond paper)

AGREEMENT

I, ___________________________ S/o ________________________ presently

residing at _______________________________________________________
___________________________________ have applied for two wheeler loan as
per the company’s two wheeler loan scheme currently in vogue. I also hereby
state that I shall abide by the rules and procedures laid down as per the policy,
and agree to the terms conditions as detailed below:

 I will be in the employment for a minimum period of 5 years from the date of
purchase of the vehicle

 I hereby authorize the company to deduct the EMIs, if any from my salary as
per company’s two wheeler policy.

 In case of my leaving the organization within the stipulated period (as above),
I agree to repay the full cost of the vehicle and forego the amount paid
towards the dues till such time of leaving.

 I agree that the two-wheeler shall be registered in the name of company

initially and will be transferred in my name after completion of 5 years period.

 The company shall pay for comprehensive insurance of the vehicle, tax, etc.
only at the time of purchase.

 I also hereby agree to take care of periodical maintenance and subsequent

insurance and bear the expenses thereto.

 I shall agree to claim the petrol expenses as per the current practice i.e.

Sl.No. Age of Vehicle Rate / K.m.

1 Upto 2 Years 1.00
2 > 2Years < 3 Yrs 1.10
3 > 3 yrs < 4yrs 1.40
4 > 4 Yrs < 5 Yrs 1.55
5 Own vehicle after 5 yrs completion 1.70

Signature of Employee Johnson Lifts Pvt. Ltd