MI-01.

17 | 21-OCT-1997 | REV -Guidelines for issuance of American Express Corporate Card

Scope To lay down guidelines for issue of American Express Corporate Card to employees to be used
primarily for business expenses.

Objective

The objectives of introducing the American Express (AMEX) card program are:

I. Financial freedom to employees while incurring business expenses as there is no pre spending
limit on the card

II. Enable Hitachi ABB Power Grids to efficiently manage business expenses through fact-based
vendor negotiations.

Eligibility

1. All employees in the management grade.

2. The card may also be issued to other employees for their business travel needs based on segment
head approval.
General

1. There is neither any joining fee nor renewal fee payable by employee to AMEX for this card
program.
2. There are no pre-spending limits on the card.
3. The card is valid for use in India, Nepal and Bhutan only.
4. There is a facility of cash withdrawal up to Rs.10,000/- from certain specified centers of AMEX
against personal cheque drawn on any bank/location without any interest or service charges.
5. The minimum personal insurance cover for air under this card is Rs.15.00 lacs. The card also
entitles for a baggage insurance of Rs.25,000/-.
6. Though a corporate card, it is issued against the individual employee and hence financial liability,
if, any, for misuse of the card will be on the concerned employee.
Policy

1. It is mandatory to use the card for all chargeable business expenses. Business expenses are
classified as those incurred in establishments that comprise of Hotels, Restaurants, Airlines, Car
rentals, etc. At places where AMEX Rupee card is not accepted, this condition shall, however, not
apply.
2. Hitachi ABB Power Grids will reimburse the employee all business expenses as per company rules,
except cost of the tickets utilized for company’s business and claimed in the travel expense
statement as the same would be directly settled by the company with AMEX. The employee will
settle all his other expenses directly with AMEX.
 3. An employee who leaves the company on superannuation/resignation will return the card to the
location personnel manager. This will be a part of settlement of final claims/dues. Any
outstanding on the card will have to be settled by the employee.
4. The company will not reimburse the employee any fees in respect of any other rupee card.
5. Misuse of card will render cancellation of card facility.
Procedure

1. Each eligible employee will complete and sign the prescribed application form which will be
countersigned on behalf of the Company by the location Personnel Manager
2. All completed forms will be then forwarded to AMEX, Delhi. AMEX in turn will dispatch the card
directly to the employee at his billing address.
3. The location personnel manager will immediately notify AMEX about the details of employees
who have resigned/superannuated from the company.
Settlement of Bills

Each card member will receive an itemized card bill every month. This will include the details of expenses
incurred on the card. All amounts due on the card, except cost of ticket for travel, should be paid by the
employee to AMEX on or before the due date.

The procedure for settlement will be as per the following steps:

Step 1 Employee incurs business expenses through AMEX card.

Step 2 Employee submits duly approved Travel Expense Report/ Expense vouchers to Accounts
department.

Step3 Accounts department reimburses employee for all business expenses except cost of ticket,
incurred through AMEX card as per company rules.

Step 4 Employee receives bill from AMEX.

Step 5 Employee pays AMEX by cheque on or before due date.

Ticket cancellations will also be made through the individual card. Cancellation charges if any, will be
claimed by the employee separately.

Responsibility

1. BA Manager (Support Services) will be the Central Program Coordinator. All MIS reports and
successful implementation of the program will be done in coordination with him.
2. The location personnel managers will be the program coordinators to ensure smooth
implementation of the program at each location.

References

None
Administrative Information (MI followed from ABB consequent to Demerger of Power Grids Business)

Prepared by Checked by Approved By Valid For Distribution

Senior Managers
Head of Legal India MD & CEO/ N Finance
Power Grids Business
(blank) & CS, Poovanna Venu Controllers
entities in India
Ammatanda CFO/A Singh Personnel
Managers
Revision History

Revision Date Change Description

- 21-Oct-1997 Initial MI rolled-out

08-July-2021 Made applicable to Power Grids Business entities in India