FATIMA FERTILIZER COMPANY LTD HR POLICY

QMS REFERENCE MANUAL

4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

A. OBJECTIVE

The objective of Company Assigned Car Policy (CAC) is to provide, facilitate and manage
vehicles for Management employees of the Company, both for official as well as personal
use.

B. ELIGIBILITY AND ENTITLEMENTS

For detail of entitlements by grades, refer to Entitlement Annexure.

C. OWNERSHIP OF VEHICLE

All vehicles shall be registered and insured in the name of the Company, whether directly
purchased by the Company or leased.

D. PROCEDURE AND RESPONSIBILITIES

1. All eligible employees shall fill-in and submit Form # HRD-025 to Human Resource
Division (HRD), duly completed in all respects within one month of joining the
Company service or car entitlement due after promotion. In case an employee delays the
submission of CAC Form for more than one month, due to any reason, the buy-back
period shall start from the date of submission of CAC Form to HRD.

2. Role and Responsibility of Human Resource Department:

a. HRD will coordinate with employee, Procurement and Finance Division to complete
the formalities and ensure that entitled vehicle is provided to the employee as early
as possible.

b. Whenever an employee leaves the Company for any reason, HRD will inform ASD
(Administrative Services Department) promptly in writing for return of vehicle.
HRD will remain the prime contact for the employee for resolution of issues, if any,
but ASD will be the custodian of all vehicles.

3. Roles and Responsibilities of Administrative Services Department (ASD):

a. Prepare and arrange necessary documents and forward copies to HRD as described in
Annexure for record in employee's personal file.

b. After due inspection and documentation, deliver the vehicles to the concern employee
at his/her place of work.

c. Process and maintain record of all vehicles for timely payment of road taxes, etc.

d. Maintain record of all Company vehicles, oversee periodic maintenance and reconcile
the record with Finance Division on quarterly basis and submit report.

e. As soon as the new hired employee confirms the date of joining, HRD (R&S) at HO
will request ASD to provide the car from the Company pool.
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 FATIMA FERTILIZER COMPANY LTD HR POLICY
QMS REFERENCE MANUAL
4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

f. All concerned divisions will coordinate to ensure that the new employee gets the car
of choice within one month of joining.

g. Whenever an employee leaves the Company for any reason ASD shall be responsible
to take charge of the vehicle with proper documents for further disposal as per policy.

4. Responsibilities of Employees:

Employee will be responsible for maintaining the vehicle in road worthy condition and
raising the request for any scheduled or unscheduled maintenance. Unscheduled
maintenance will be approved by the concerned Divisional heads.

E. ASSET LIFE FOR DISPOSAL

All vehicles shall have life of 5 years, to be considered for the purpose of depreciation. The
depreciation shall be calculated at the rate of 20% per annum. Car disposal shall take place as
per lease termination value or written down value whichever is higher.

F. UP-GRADATION

The Company shall allow the concerned employees to up-grade their designated vehicles on
the following terms:

1. Up-gradation of vehicles shall only be for Toyota, Honda or Suzuki makes.

2. No up-gradation or purchase of used or reconditioned vehicles shall be allowed

3. An employee wishing to up-grade his/her vehicle shall be required to deposit a cross

cheque, equivalent to the differential amount, in the name of the Company, along with
duly filled and approved CAC Form.

4. The price differential shall be the difference between the price of designated vehicle and
the price of the employee's choice vehicle, at the prevailing booking price

5. All other incremental costs due to up-gradation of vehicle like motor registration fee,
insurance, road taxes, etc. shall be borne by the employee. Such differential amounts
shall be deducted at source by the payroll section, on an annual basis.

G. FUEL REIMBURSEMENT

1. Fuel Reimbursement: Fuel reimbursement shall be made on the monthly basis upon the
submission of actual fuel slips to Finance, duly signed by the concerned employee.
In case an employee has a leftover balance at the end of the year, Company will
reimburse the balance at the prevailing market price. This annual balance will not form
part of settlement of account in case an employee separates from the Company for
whatever reason.

2. Reimbursement in case of delay in providing CAC: The employee entitled for a CAC
shall be eligible to claim reimbursement of actual fuel consumed, from the date of such
entitlement, irrespective of the fact whether vehicle has been provided to the employee
or not.

DOCUMENT CODE : HRD-PMS-IMS-011 Revision No. 00 Revision Date: 01-11-2011 Page 2 of 6

 FATIMA FERTILIZER COMPANY LTD HR POLICY
QMS REFERENCE MANUAL
4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

3. Reimbursement of Fuel for Marketing employees (Sr. Executive and below): The
employee has to prepare DES (Daily Expense Statement) to claim cost of POL, repairs
and maintenance duly supported by actual payment receipts and log sheets. Respective
Administration Officer will check/ verify and Regional Manager will approve DES.
Employees working at Head Office and marketing field locations shall get
reimbursement of DES from payroll section and regional offices respectively.

H. MAINTENANCE

1. Department Manager grade & above including all Marketing employees: These
vehicles shall be fully maintained by the Company, which include routine/ scheduled/
un-scheduled maintenance, engine tuning, wheel alignments, wheel balancing,
replacement of tires, servicing of air conditioner, body denting and painting, oil, filters
and parts replacement, etc

2. Executive & Sr. Executive grades (Non marketing only): Employees shall be eligible
for reimbursement for general & scheduled maintenance only for CAC. Employees shall
get reimbursement on submission of actual bills with a maximum limit of Rs. 25,000/-
per year. These employees are also eligible to get a replacement of all tires after every
40,000 km during four year period. Company will reimburse cost of tires recommended
by the original manufacturer.

I. EMPLOYEES BUY-BACK OPTION

1. Buy Back of New CAC

a. The Company shall allow the buy-back of vehicles to the employees after four years
of continuous service or entitled period with the Company, as per clause E.

b. The period of four years shall start from the date of appointment in the Company or
promotion or entitlement of the said vehicle.

c. In case an employee delays the submission of CAC Form for more than one month,
due to any reason, the buy-back period shall start from the date of submission of
CAC Form to HRD.

d. All expenses on account of registration, yearly road taxes, insurance, freight charges,
etc. shall be borne by the Company and these expenses shall not be considered or
added to the sale price for the employees.

e. An employee wishing to buy-back CAC shall give consent in writing to the HRD,
along with a cross cheque of the buy-back amount in the name of Company, one
month prior to the expected date of transfer of the vehicle.

f. ASD shall be responsible to arrange all the buy-back related documents, within a
period of one month, from date of such application received from the employee.

DOCUMENT CODE : HRD-PMS-IMS-011 Revision No. 00 Revision Date: 01-11-2011 Page 3 of 6

 FATIMA FERTILIZER COMPANY LTD HR POLICY
QMS REFERENCE MANUAL
4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

2. Buy-Back of Used CAC

a. If an employee who is entitled to a CAC is assigned a used vehicle due to any reason,
he/ she shall be allowed to buy-back such vehicle at book value, provided that the:

• Said vehicle has completed life of four years from its date of purchase, and
• Minimum use of said vehicle has been of two years with the concerned employee.

b. The buy-back price shall be determined as per the ‘Clause-E’ noted above.

3. Buy- Back of CAC by Contractual Employees

a. Management employees on contract, leaving the Company after serving minimum of

two years shall be entitled to buy-back the vehicle on lease termination value (no loss
to Company).

b. Management employees on contract, who are allocated a minimum of one year old
car shall be entitled to buy-back the car at prorately depreciated value on completion
of four years usage with the said employee, as per ‘Clause-E’ or at 10% of invoice
value, whichever is higher.

c. It will be onetime assistance for contract employees. In other words, employee will
not be eligible to buy-back his/her second car.

J. REPLACEMENT OF VEHICLES

1. All vehicles shall be replaced by the Company as per aforementioned clause I-1 or I-2, as
the case may be.

2. In case the assigned vehicle is stolen or declared as a total loss due to an accident, the
Company shall provide a new vehicle. In this case the employee shall pay the differential
amount of new and old vehicle’s invoice value in addition to the buy-back value (Buy-
back amount shall be calculated on old vehicle’s invoice price) at the completion of
cumulative four years.

K. OTHER CONDITIONS

1. Retirement from the service of Company

An employee retiring from the service of the Company shall be allowed to buy-back
vehicle on lease termination value (no loss to Company), provided that the vehicle or the
entitlement period is minimum one year.

2. Death of an Employee

In case of employee’s death during Company’s service, remaining lease payments shall
be settled by the Company within a month with leasing organization and ownership of the
vehicle will be transferred to next of kin without any charges.

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 FATIMA FERTILIZER COMPANY LTD HR POLICY
QMS REFERENCE MANUAL
4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

3. Promotion Cases

In case an employee is promoted within four years, he/ she shall have the following
options:

a. Concerned employee may continue to use the existing vehicle till four years have
been completed and then he/ she can exercise the buy-back option, as per ‘Clause-E’,
or

b. Concerned employee may exercise buy-back option, provided he/she has used the
existing vehicle for a minimum of 2 years from the date of entitlement of CAC. The
buyback of vehicles shall be on lease termination value (no loss to Company) and
employee can apply for new CAC as per ‘Entitlement Annexure’.

c. The buy-back period for the new car shall begin from the date of buy-back option
exercised

4. Separation from the Company

In case an employee resigns or is released as per Company's requirement after one year of
service from the entitlement of CAC, he/she shall be allowed to buy-back vehicle on
lease termination value (no loss to Company).

L. MODIFICATIONS

There shall be no modifications allowed in the CAC, including:

a. Installation of CNG kits

b. Body modifications like boot spoilers, fenders, bumpers, etc

c. Engine modifications

d. Interior modification

M. HAND-OVER THE CUSTODY OF CAC AT THE TIME OF SEPARATION

An employee leaving the Company due to any reason is required to handover the custody of
CAC on or before the date of leaving the Company to ASD against a receipt, who will take
charge of the vehicle on intimation by HR and will prepare the proper documents for further
disposal as per policy.

N. USE OF CAC OUTSIDE MUNICIPAL LIMITS

1. In case of travel outside the municipal limits for official purpose, the employee shall be
required to use his/ her CAC and charge for the transportation cost at the rate of
Rs.10.50/- per KM. This rate will be revised whenever the prices of POL increase/
decrease by more than 10%. This rate is based at current price of fuel i.e. Rs.90/- per liter.

DOCUMENT CODE : HRD-PMS-IMS-011 Revision No. 00 Revision Date: 01-11-2011 Page 5 of 6

 FATIMA FERTILIZER COMPANY LTD HR POLICY
QMS REFERENCE MANUAL
4.2.1 (d)
COMPANY ASSIGNED CAR POLICY

2. Employee may be provided with a car or driver, from the pool for such travelling if
available.

O. MARKETING EMPLOYEES (SENIOR EXECUTIVE AND BELOW)

1. Trip Log Book

a. Employees assigned with a Company car will be required to maintain a daily Trip
Log Book showing daily number of all official trips made, details of locations visited
and actual miles traveled.

b. Six monthly audit will be carried out by Regional Managers and once in a year by
internal auditor. Any irregularity will be reported to Director Marketing.

P. POLICY ADMINISTRATION

HRD shall be the sole custodian of this Policy. As such, all interpretations and references
shall be made to HRD only.

Q. POLICY ATTACHMENTS

• Application for Company Assigned Car (Form# HRD-025)

• Annexure, Entitlement

R. POLICY EFFECTIVE DATE

This Policy shall be effective from November 01, 2011 and shall supersede all previous
policies. This policy shall be applicable on all CACs assigned to employees. However for the
purpose of buy-back option, the effective date shall be 1st January, 2011.

Prepared By Reviewed & Recommended By Approved By

Senior Executive Group Head of Human Resource Chief Executive Officer
Human Resource For Policy Review Committee

DOCUMENT CODE : HRD-PMS-IMS-011 Revision No. 00 Revision Date: 01-11-2011 Page 6 of 6

 Annexure Entitlement
a. Employee Entitlements: All Management employees of the Company, other than Sr.
.*. .
Executive and below in Marketing division.

No Designation Vehicle Type Monthly Driver

Fuel Limit
1 General Managers and Upto 1800 cc; Toyofa Corolla (Altis) or Unlimited Yes
above Honda Civic (Top of the line models;
manual or automatic transmission)
2 Department / Sr. 1300 cc; Toyota Corolla (GLi) / 275 Liters Yes
Department Managers equivalent
3 Uhit / Sr. Unit Managers; 1300cc; Toyota Corolla (XLi) / 200 Liters NA
Sr. Executives; Sr. Staff equivalent
Engineer
4 Section Heads; Staff 1300cc; Suzuki Swift DLX 150 Liters NA
Engineers; Executives

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
' No. 'Designation . ' ' Vehicle Type Private Use POL Liinits fop
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' 2 "~x&uti~s 1300 cc: Suzuki Lianq 1;3L RXI 150.liters, Maintenrncei

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No., Designation,.,,,., . Vehicle Type,:. . . . . . . . . . . . , . . . . . ' POL ,Limits : .,- : . , , ,, ,

1 Office? 1 to ~ r0ffi&&
. 1300 cc: SUzuki Liana 1.3L RXI MT I Actual Msts 6f POL, ' . .
. .
.. . . . . . . . . . . .. .. . ., . . . . . . . . . . Suz&
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Note : ..

~ m ~ l ~using e s cars will be eligible to i k t fie1 reimburs~mentas per the rate of

~ e Diesel
petrol (Super) again& hidher fuel consumption for that particular month.
'* Employees shall not be provided CNG fitted cars
Employees already allotted CNG cars can get reimbursement of monthly fuel consumption. .
equivdent to 1.50Kgof CNG. -
Private use of c.m (Sr. Officer to MTO): Private use of the vehicle will be allowed as per.
following: . . . . ..

.
I DOCUMENT CODE :HRq-PMS-lMS-011 I Revision No. 01 I
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Revision
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Date: 15-06-2012
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 o 200 Krn per month private use will be allowed with no fuel cost charged to the
employee

o For additional private use, the employee will pick up only he1 cost as per actual. The
employee will prepare DES for all POL expenses at month end; calculate average
fuel cost in the same DES for private use exceeding 200 KM during the month.

c. List of documents to be filed in Employee's personal file

Approved application of Company Assigned Car

Copies of cheque for differential amount (if any), vehicle registration, insurance, and
handing/ taking over form.
. v

-..............- -.".-.l,.--"l- ...I... 7 - 7 , ..... _*---. -. -..-, ..... __^.-.................l.... . . . . .%.. .............
Prepared By Revimed & Reco~nmendedBy ~ p ~ r & eBy
d
Senior Executive &uPP~Ladof ~ u m a R&O-
n Chief Executive officer
Human Resome , For Policy Review Committee

, W' . .
A l L L
I DOC- CODE :HRD-PMSIMS-0 11 I Revision No. 01 } Revision Date: 15-06-2012 1 Page 2 of 2
   

Application
n for Co
ompanyy Assign
ned Carr 
Com
mpany Naame:  Fatima Fertilizer C
Company Limited 
Employee Infformation
n 

Employee No
o:    N
Name:   

Dep
partment::    D
Designatio
on:  

Graade:    C
CNIC No:          ‐              ‐   
Office:  Extension:  Mobiile: 
Con
ntact No: 
   
Loccation:   
Make  Type 
Enttitled Vehiicle:  Price: Rs. 
 
Veh
hicle Applied for: 

Make:      Type:     

Invo
oice Pricee:  Rs.  *Diffferential A
Amount (iff any):Rs.

☐ Cheque atttached   

n1 : 
Color Option   2:    
Colorr Option 2

Reggistration City:   ☐ Multan  ☐ Lahore ☐ Karrachi  ☐ Islamabad 

Typ
pe of Application: 
(Pleead Tick th
he approp
priate) 
☐ New
w  ☐ Replaceement 
☐Opt ffor buybaack  
Buy Back Amo
ount Rs.   d ☐ 
    Chequee attached

App
plication D
Date:       

 
Initiated by:  Verified
d by:  Approved
d by: 
   
 

Employee Signature  Officeer HR Servvice Deliveery  Head  o

of HR Servvice Deliveery 
 

HRD‐‐025                              Pagee 1 of 1 

 Pakarab Fertilizers Limited

Inter office Memo

To: All Divisional Heads April 6,2012

From: Group Head of Human Resource HRD/PFL/ 112012

Amendment: Com~anvAssigned Car (CACI Policv, HRD-PMS-IMS-011and Car Allowance Policv

JCAPI, HRD-PMS-IMS-012

Due to the increase in petrol prices by approximately 16% (Rs. 90 per litre to approximately Rs. 105
per litre) since last policy revision, the following amendment related t o the use of CAC/Car outside
municipal limits needs to be noted for current and future practice:
.! ,)

Clause N (1.) i n CAC policy: This clause will now be read as;
o In case of travel outside the municipal limits for official purpose, the employee shall be
required t o use his/her CAC and charge for the transportation cost at the rate of Rs.
121- per KM. This tate will be revised whenever the prices of POL increaseldecrease
by more than 10%. This rate is based at current price of fuel i.e. Rs. 1051- per litre.

. . . .

e' Clause
. .
G (l.)ih. CAP policy: This clause will ny be.lead as;
. . . . .
. . ' ,

. . . . . . . . . . . . . . . . . . . . . .o
. .
. In c&e:if travel outside the .---_
. .
,.
m,u~tiicipal
liinits f o l &fi&l
- .-.......... .... purpose
--.... the employee
L .................................. -.-. shall be..
... ...

feqt&ed to use hislher car dird charge for the transportation cost at the rate of Rs.
13.51- per KM. This rate will"be revised whenever the prices of POL itinreaseldecfease
~. .
by more th3n 1'0%.This rate is based at current price of fuel i.e. Rs. 105/- per lit*. .
,

-. .
Thank You
. .
. . . 4 . .

. . . . . . ,;..---. .. ........:.... .:. . .

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