CAR SCHEME

1. OBJECTIVE
In order to facilitate the employees of the Company, who are in the managerial cadre, to own
a car, it has been considered expedient and necessary to evolve a scheme for the purpose.

2. APPLICABILITY
2.1 All the employees, who are provided Company vehicle (as per the following chart), will own
the car under this scheme.
LEVEL ELIGIBILTY
On road price of the car not to exceed
Vice President & above Rs. 6,00,000
Associate Vice President
General Manager
Rs. 5,00,000
Deputy General Manager
Senior Manager
Rs. 3,50,000
However, all the applications under this scheme require specific approval of the
management. Further an employee could buy another model of vehicle by paying
differential amount at the time of purchase of vehicle.

3. SCHEME
3.1 The scheme is applicable for the purchase of a car, for which the employee is eligible.
3.2 The eligible employee admitted to the Scheme, shall be required to make a down payment of
10% of the cost of car (as per clause 3.3 of this Scheme). This amount will be credited to his
/ her account as an advance payment towards purchase of car and will not bear any interest.
3.3 The company will pay 90% of the cost of the car, which will include base price of the car,
related taxes, road tax and insurance.
3.4 The car shall be registered in the name of the company and shall be used by the employee
for company work. The employee shall be responsible to keep & maintain the car in good
working condition.
3.5 The company will not permit transfer of the car allotted to him / her in the name of the
employee unless he / she completes four years from the date of allotment of the Car.
3.6 In case, the employee leaves the services of the company before completing four years under
the scheme, he / she will have to compulsorily buy the car by making the payment as under :
PAYMENT
PERIOD (including 10% initial deposit
& installment paid)
Before one year 100% of the original cost (on road)
After completing one year 85% of the original cost (on road)
After completing two years 70% of the original cost (on road)
After completing three years 55% of the original cost (on road)
After completing four years 30% of the original cost (on road)

3.7 After making initial 10% payment as per clause 3.2 above, the employee will make further
payment equivalent to 10% of the original cost spread over four years in 48 EMIs (equated
monthly instalments). Refer Appendix for details. Balance amount of 10% will be paid on
completion of four years or earlier as per clause 3.6 above.
3.8 In case, the employee leaves the services or is terminated from the services of the Company,
and does not want to take the car, the company reserves the right to sell the car in the open
market and recover the amount outstanding against the same from the proceeds of the sale.
Any surplus from the proceeds of the sale will be paid to the employee and in case of any
deficit; the same will have to be paid by him / her.
3.9 On completion of four years from the date of allotment and settlement of accounts as per this
scheme, the car will be transferred in the name of the employee and he / she will be eligible
to apply again for the car under the Scheme.
3.10 If the employment conditions of an employee change so as to alter his car eligibility, he / she
will continue with the same car for not less than four years period from the date of purchase,
before exercising fresh option.

4. MAINTENANCE OF THE VEHICLE
The employee shall be responsible to keep and maintain the car in good working condition.

5. PROCESS
5.1 The eligible employee will apply for admittance to the Scheme in the prescribed form
through his Department Head to the Head of Personnel & Administration who will get
necessary approval of the Managing Director on the basis of various factors explained
hereinabove.
5.2 On approval, the concerned employee shall be required to forward a cheque for the value of
10% of the cost of the car (on road basis) to the Head of Personnel & Administration and on
realization of the cheque, necessary steps will be taken to book / procure the car.
5.3 The concerned employee, on booking the car shall be required to sign necessary Agreement
with the Company.
5.4 On getting the delivery of the car, the same will be allotted to the concerned employee and
requisite acknowledgement of the possession of the car will be obtained from him / her. A
copy of the acknowledgement will be sent to Accounts Department and another copy will be
kept in the Personal file of the concerned employee
5.5 Necessary information in regard to (a) employees admittance to the Scheme and (b)
allotment of car shall be sent to Corporate HRD.

6. Company reserves the right to modify / withdraw the scheme at any point of time, as deemed
fit.
7. Calculation of Payment Schedule: Assuming that the price of the car to be Rs.4,00,000/-
I - Initial Deposit Rs.40,000.00
II - To be paid in 48 equated
Monthly instalments = 40,000/48 @ Rs.833.34 per month
III - At the expiry of 4 years Rs.40,000.00

After the expiry of 4 years, the car will be transferred in the name of respective employee.


ANNEXURE
REQUEST FOR CAR
Under CAR SCHEME

Date : ..
The P & A Department
__________________
__________________

Dear Sir,
I wish to apply for the admittance of my name for acquiring a CAR for the purpose of official use
under companys Car Scheme.

On demand, I will remit the requisite amount equivalent to the 10% of the Car price (total cost to
the company) and authorize the company to deduct the balance amount from my salary as per the
scheme.

I have gone through the Scheme and agree to abide by the rules and regulations as stipulated
therein.

My preference of the car will be __________________________________________ costing
Rs.________________.


Signature :
Name :
Designation :
Date of joining :

Forwarded through DPM Approved/Not approved



Finance Deptt. Head of P&A Managing Director


AGREEMENT
(on Non Judicial Stamp Paper of appropriate value)

This Agreement is made at on this .. day of
(Two thousand) between a
company registered under the Companies Act, 1956 and having its registered office / head office
, (hereinafter called the
Company which expression shall include its successors and assigns of the one part and Mr.
son of Shri resident of
. . (hereinafter called
the Employee) of the other part.

WHEREAS the Employee is working as with the Company since .
AND WHEREAS for efficient discharge of duties, the Employee has requested the Company to
provide him / her with official transport.
AND WHEREAS the Company has agreed to provide to the Employee a .
car on the following terms and conditions, to which the Employee agrees.
NOW THEREFORE THIS AGREEMENT WITNESSES AND it is hereby agreed by and between
the parties as follows :-
1. That at the request of the Employee the Company will purchase a new .
car and the same will be provided to the Employee.
2. That the Employee will pay to the Company an amount equivalent to 10% of the cost of the
car including accessories as interest free deposit.
3. That the employee will use the car for official purposes and for no other purpose.
4. That after the expiry of four years from the date of purchase of car by the Company, the
Employee will purchase the car at 30% of the original cost of the car including the cost of
accessories. The deposit lying with the Company will be adjusted against the sale price.
5. That in case the Employee ceases to be in the service of the Company whether by retirement,
resignation or otherwise, it will be obligatory for him / her to buy the car in the manner
stated below
Period Cost
(This period will be counted from the date of allotment of car to the employee by the Company)
1. Before completing one year 100% cost of the car including cost of
accessories.
2. Before completing two years 85% cost of the car including cost of
accessories.
3. Before completing three years 70% cost of the car including cost of
accessories.
4. Before completing four years 55% cost of the car including cost of
accessories.

6. That in case the Employee does not buy the car, the Company shall be free to sell the same in the open
market to any one and loss / damage, if any suffered by the Company on this account will be recovered
from the Employee. The Employee hereby irrevocably authorizes the Company to adjust the amount of
loss / damage suffered by the Company from the deposit and / or from the dues, if any, payable by the
Company to the Employee. The shortfall, if any, will also be paid by the Employee.
7. That the Employee shall not create any charge, encumbrance or lien on the car nor will permit its use by
any one else.
8. That the Company shall keep the car comprehensively insured. It will, however, be the duty of the
employee to inform the company at least 30 (thirty) days before the expiry of the Insurance Policy to
enable the company to take new Insurance Policy. In case the Employee fails to discharge his
obligation, he shall be responsible for all the loss / damage / expenses suffered by the Company on this
account. The company shall also bear the cost of registration, Road tax etc.
9. That the Employee undertake to identify and keep the Company indemnified against any loss / damage
expenses suffered by the Company for any misuse of the car for any illegal activity or non-compliance
with any rules, regulations, orders, for any tortuous liabilities, accidental losses / damage including the
cost of defending any litigation in this regard.
10. That in case of any dispute or difference arising under this Agreement, the decision of the Chairman /
Managing Director of the Company shall be final and binding on the Employee.
The Courts at Delhi shall have exclusive jurisdiction in all matters arising this Agreement.
IN WITNESS WHEREOF the parties have signed these presents, on the day, month and year first
above mentioned.
WITNESSES :
1. Sign..
Name & Address ................................................
..........................................................................
.........................................................................
For ________________



Authorised Signatory
WITNESSES :
2. Sign..
Name & Address ................................................
..........................................................................
.........................................................................




Signature of the Employee



Mahesh K Prasad
Head-Human Resources