Purpose:

The purpose of this policy is to provide guidelines pertaining to appraisal process due at the
end of every Financial Year (FY) applicable to eligible employees.

Employee Eligibility:
• Lateral hires: Employee joining on or before 30th September will be eligible for appraisal
process in the same FY.
• Interns: Interns who gets Appointment letter i.e. confirmation of their employment, on or
before 30th September will be eligible for appraisal process in the same FY.
• For to be eligible for performance bonus and sales incentive, employee should be on the
payroll of the company on the day of disbursement i.e. 7th July.
• For to be eligible for salary increment, employee should not be on notice period or
resigned on the day of the arrears payment i.e. 7th June.

Policy Guidance:
• Annual appraisal process will be conducted at the end of each financial year and appraisal
cycle is April to March of the FY.
• Employees, if eligible for appraisal, spending less than a year in the appraisal year will be
appraised on pro-rata basis. For example, if a person has joined or an intern got confirmed
on 1st June, he/she will be eligible for appraisal in the current financial year for a period
from 1st June till 31st March i.e. for 10 months
• Feedback management system that is Appreciations and Escalations received during the
FY and DSR compliance in that FY will become major input in the appraisal of each
individual.
• Explanations for rating is mentioned below effective from FY 2019-2020:

Rating Meaning
1 Exceeding expectation (At the very top w.r.t peers)

2 Above expectations (Above peer group)

3 Met expectations (At the par with peer group)

4* Below expectations (Below peer group)

*Anyone with the lowest rating can be put under Performance Improvement Plan (PIP) to
ensure the performance improvement.
• Increment and Performance linked Bonus % will be based on performance rating of the
employee, company performance, strategic goal, and market condition. Polestar
Leadership team have the sole right to decide on the Salary increment and Bonus %
Payouts.
• Promotions decision will also be part of the Appraisals. Promotion will depend on
Employee readiness to perform at the next level, current year performance rating,
organization need and market Conditions. Polestar Leadership team will have sole right
to decide on the promotion matters.
• All eligible Employee will receive revised Salary with the 2nd Month’s salary post the
Appraisal Month i.e. with May month’s salary on 7th June and it will be paid with Arrears
i.e. effective from 1st April.
• Eligible Performance linked Bonus will be paid with 3rd Month’s salary post the Appraisal
Month to all eligible employees.
• Salary Increment, Bonus & Ratings are extremely confidential information and should not
be shared with other employees irrespective of any circumstances. Strict Disciplinary
action will be taken against employee violating this norm.
• Any employee for whom exclusive communication of incentive scheme has been made
i.e. Sales incentive plan for sales employees, their performance bonus will be as per the
incentive plan communicated to them and same will be paid on 7th July
• Polestar Management reserves the right to revisit performance incentive structure on
time to time basis and may modify the same by updating the same in the Appraisal policy.
The Performance incentive structure, applicable from F.Y. 2019-20 is as follows: -

Rating Performance
Incentive*
(% of Fixed)
1 10%

2 7%

3 4%

4 0%

*Performance Incentive % are subject to revision based on Polestar Management Decision and No one else have will ever have any
right to question such decision.

• Performance linked Incentive component is restructured, and the maximum performance

incentive will be 10% of Fixed CTC (Not 25% of the fixed CTC) and it will be effective from
FY 2019-20 onwards. Kindly note that this will not have any impact on the appraisal of FY
2018-19.

• Employees (Interns) who have joined in FY 2018-19 and aren’t part of appraisal process of
FY2018-19, their variable component will remain 25% of the fixed CTC and it will be
changed to 10% of the fixed CTC post one appraisal cycle.