Policy 0021 - Expense Management Policy

PURPOSE OF THIS POLICY

The Polestar Expense Management Policy (PEMP) exists to provide general expense and fraud
control, and to ensure that Polestar is able to take appropriate Internal Revenue Service tax
credits for authorized expense reductions.

BACKGROUND

In order to meet business objectives, Polestar employees will need to travel, entertain, and/or
incur expenses on behalf of the company. The company agrees to reimburse them for costs
incurred while engaged on such activities. The main objectives of this policy are:

 Ensure employees have a clear and consistent understanding of the processes and
requirements established for reimbursement of travel, entertainment and other business
related expenses.
 Ensure that all authorized expenditures meet and comply with all requirements from
regulatory / audit perspective for Polestar.

RESPONSIBILITY

The Chief Financial Officer is responsible for the creation, establishment, maintenance,
revision and publication of this Policy.

All Directors, Managers, Supervisors & Team Leaders are accountable for ensuring compliance
with this policy when approving expenses incurred on behalf of the Polestar.

All employees are responsible for reading, understanding and complying with this policy.

Non-compliant transactions are subject to short pay, additional review, and may require
additional management approval.

Polestar retains the right to modify or alter this policy and its appendices in its sole discretion.
Polestar shall communicate any changes to Polestar employees as appropriate.

POLICY & PROCESS

a. Employee must fill Expense Reimbursement request online in “Fusion” application system.
When completing the Expense Form, ensure that expenses must be fully itemized and
should include:
o The amount of each expenditure and a proper description purpose of the expense
incurred
o Date of the expenditure
o The reason for the expenses or the general business circumstance
b. All Expense reimbursements require that Original Receipts are attached along with
reimbursement form except for cases where receipts are not normally available e.g. local
cab fare reimbursement.
c. Expenses are reasonable and incurred as outlined in this policy.
d. Timely Submission– You need to submit all the expenses on fortnight basis. System will
allow you to capture expenses only till last 45 days, beyond which expense claim will be
disallowed.
 Policy 0021 - Expense Management Policy
e. Approval Matrix – Approval matrix is defined in the system. It is employees responsibility
to ensure that all approvals are being taken.
f. Approving Authority must ensure that:

a. Expenses are incurred for the benefit of or are in the best interest of the Polestar.
b. Expenses are reasonable and incurred as outlined in this policy.
c. Documentation is complete, with original receipts to include the name, title and the
nature of the requirement resulting in the reimbursable expense.
g. Examples of nature of expenses does not fall under reimbursement policy –
 Travelling expenses from employee’s residence to Polestar office.
 Any expenses which does not cover under this policy
 Any expenses which are personal in nature
h. Once all approvals are in place, Employee will be able to take print-out of the
Reimbursement Request Form with relevant details, need to sign on the same and submit it
Admin department for payment processing.
i. Once payment will be processed, payment confirmation details will be updated in Expense
Application system.
j. Processing Timelines –
Response -
Physical Claim Form Payment
Approved /
(If Received) Timelines
Rejected
< 20th of the Month In 5 working In 10 Working
> 20th but < 5th of next month Days Days
i. In case of rejection – Rejection reason will be informed on email and Claim Form will be
returned for rectification.

REIMBURSEMENT EXPENSES AND GUIDELINES -

The following expenses are covered by this document:

1. Reimbursement of expenses for late sitting and for coming on holidays
2. Local Conveyance
3. Telephone expenses-Mobile

All employees are required to adhere to these policies.

1. Reimbursement of expenses for late-sitting and on holidays:

Meal Conveyance (From Polestar Office)

Designation Maximum (Rs.) Basis Maximum (Rs.) Basis
Working Days

Sr. Consultant &

@ 65/- Day @ 150/- Day
Below Beyond
Beyond 11:00 PM
Manager & 10:00 PM
@ 100/- Day @ 200/- Day
Above
Sr. Consultant &
On Holidays

@ 65/- per time Minimum 4 @ 150/- Day

Below
Hours in Beyond 11:00 PM
Manager &
@ 100/- Day office @ 200/- Day
Above
 Policy 0021 - Expense Management Policy

2. Local Conveyance

Senior Consultant & Below: - Reasonable amount can be reimbursed on fulfilling following
conditions –

Area Commuting Mode Basis Rate Maximum (Rs.)

Noida, GhaziabadPublic Transport - Difference of - Residence @100/- day
Actual amount
NCR except above Metro, Auto only to Polestar office @150/- day
AND
Noida, Ghaziabad Residence to Client's @100/- day
Own Vehicle @ 4/- per K.M.
NCR except above office @150/- day

Manager & Above: - Reasonable amount can be reimbursed on fulfilling following conditions-

Area Commuting Mode Basis Rate Maximum

Noida, Ghaziabad Public Transport - Difference of - Residence Rs. 150 per day
to Polestar office Actual amount
NCR except above Metro, Auto only Rs. 300 Per Day
AND
Noida, Ghaziabad Residence to Client's Rs. 150 per day
Own Vehicle @ 6/- per K.M.
NCR except above office Rs. 300 Per Day

3. Telephone Expenses-Mobile: The cost of the handset & monthly rentals has to be borne
by the employee and the Company would reimburse the actual cost for official calls made.

Reimbursement of mobile phone costs will be made to Sales team only. All others will be
reimbursed on a specific approval. Mobile phone costs may be paid directly by the Firm
only if the use of the mobile phone is virtually all for business and otherwise there is no
need to own a mobile phone. Monthly rentals may not be reimbursed by Polestar and only
official calls made through mobile will be reimbursed if predominantly for business
purposes. The item wised bill will have to be submitted with personal calls marked. In
case of personal calls the same needs to be intimated and the same should be reimbursed
back to the Company. Instructions may also be issued so that the recovery could be
affected through salary. Additional facilities e.g. night speak, voicemail, etc will not be
reimbursed.
**Reimbursement for mobile phones will be as under:
Associate Directors & above Manager & Sr. Manager Others
Rs. 3,000/- per month Rs. 1500/- per month Rs. 500/- per
month

Telephone expenses from residence:

The Company will reimburse the cost of STD / ISD telephone calls made for the purpose of
business. The cost of handsets & monthly rentals shall be borne by the employee.

Any claim more that Rs. 200/- per transaction is required to be approved by Director /
Partner.
4. Long Term Deputation at client site outside NCR
In such cases Polestar management will intimate you in advance about the monthly
allowances. Once monthly allowance will be applicable, no other reimbursement will be
given for any other expenses.