HR-CarPolicy-607-D0916-V9

Nayatel (Pvt) Ltd

Human Resource Policy: Car Policy for Assistant Managers and above
Approved by: Board of Directors
Prepared and Reviewed by: GM Finance
Preparation Date: 21 June 2005
1st Revision: 23 November 2007
2nd Revision: 17 August 2009
3rd Revision: 30 December 2010
4th Revision: 12 December 2012
5th Revision: 23 July 2015
6th Revision: 05 September 2015
7th Revision: 17 June 2016
8th Revision: 8 September, 2016

1.0 Objective

To provide transport facility to company employees at managerial level.

2.0 Scope

This procedure applies to all regular employees in the position of Assistant Manager and above
designations in NTL.

3. Terms and Conditions

3.1 All Assistant Managers and above designations in NTL, who have completed two years of
service in NTL as permanent employees will be eligible to avail this car facility.

3.2 Eligible employees will be required to pay back all outstanding Car Loans to qualify for this
Policy.

3.3 Maximum entitlement of car value based on prevailing companys retail price will be as
follows:

Designation Existing Limits Increased Limits

VP Rs. 2,200,000 Rs. 2,300,000
General Manager Rs.1,800,000 Rs.2,100,000
Senior Manager Rs. 1,500,000 Rs. 1,700,000
Managers Rs. 1,100,000 Rs. 1,350,000
Deputy Manager Rs. 1,000,000 Rs. 1,054,000
Assistant Manager Rs. 900,000 Rs. 1,054,000

3.4 Employees will be required to contribute 100% additional cost including the leasing,
insurance and any other costs, if they opt for a car whose price exceeds the limit given in
Clause 3.3 above.

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3.5 NTL will arrange the car to be leased from a leasing company and handover it over to the
employee.

3.6 Car will be registered in the name of NTL/Leasing Company. Car registration charges for
the first time will be borne by NTL and subsequent registration renewal charges will be
borne by the employee.

3.7 Cars will be leased by NTL on 5 years lease term. NTL will contribute 80% of both the
down payment and monthly installments (including markup, insurance and any other
leasing company charges) to the leasing company as per entitlement amount of the
employees specified in Clause 3.3. Remaining 20% of both the down payment and monthly
installments (including markup, insurance and any other leasing company charges) will be
paid by the employee to NTL. The difference of the down payment and monthly
installments owing to purchase of a car higher priced than the limit will also be paid by the
employee to NTL.

3.8 Down payment will be made @15% of the total cost, to be shared by NTL and the
employee @ 80% and 20% respectively.

3.9 Car will be sold to the employee by NTL at the end of 5 year lease term against the 20%
share already paid by him in the form of contribution and after obtaining No Objection
Certificate from the leasing company.

3.10 Five years Comprehensive Insurance cost for the leased car is also included in the limits
specified in Clause 3.3 above and this cost would be correspondingly shared between the
NTL and employee at a ratio of 80 % and 20% respectively.

3.11 Any premium or own at the time of purchase of the car for early delivery requirement of the
employee will be paid directly by the employee to the seller. NTL will not be a party to this
own/premium transaction.

3.12 Employee will have the option to select any model of the car from Suzuki, Toyota and
Honda manufacturers. The car should be brand new or maximum 12 months old/used (non-
accidented) subject to acceptance by the leasing company.

3.13 If employee resigns from NTL after 36 months but earlier than 60 months period of availing
car facility under this policy, ownership of the car can be transferred earlier to the employee,
provided the employee prepays full balance installments including NTLs contribution and
50% of NTLs contribution made from 36 months onwards of leasing period till the date of
resignation towards the cost of car, leasing cost, insurance cost, registration cost and any
other costs incurred by NTL on provision of this facility for the employee during this period.
For instance, if any employee resigns after 48 months from date of availing car facility, he
will pre-pay 100% of the remaining 12 months installments, and 50% of the 80% NTL
contribution made in 12 (48-36 = 12) months to get the ownership of the car.

3.14 If employee resigns from NTL during the first 36 months period of availing car facility
under this policy, ownership of the car can be transferred to the employee, provided the
employee pre-pays full balance installments including NTL contribution and also 100% of
the NTL contribution made during the car facility availing period towards the cost of car,
 leasing cost, insurance cost, registration cost and any other costs incurred by NTL for
provision of this facility for the employee during this period.

3.15 If employee resigns from NTL during the five year period of availing this car facility and is
not willing to make balance full payments to get ownership of the car, the car will be
retained by NTL subject to following:

3.15.1 Car has to be in satisfactory condition. Otherwise, payment made by NTL on

account of necessary repair work will be recovered from the employee.

3.15.2 Employees total contribution towards down payment and the installments during this
period will be returned as per following criteria:

a. During first year of car possession: 70% of employees contribution

b. During second year of card possession: 80% of employees contribution
c. Third year of car possession: 90% of employees contribution
d. During fourth & fifth year of car possession: 100% of employees contribution

3.16 In case of death of an employee who has been in possession of the leased car, offer will be
made to the legal heirs of the employee to make the balance payments as per procedure
outlined in Clause 3.13 and 3.14. If the legal heirs of the employ are not willing to retain the
car, NTL will retain the car as per procedure outlined in clause 3.15

3.17 Petroleum, oil and lubricants and any other maintenance would be the sole responsibility of
the employee to whom the car is leased. NTL will have the right to inspect the car
periodically to make sure that car is being maintained properly. In case of improper
maintenance, a notice will be served to the employee to ensure proper maintenance of the
car. In case employee fails to comply with proper leased car maintenance notice, NTL will
be eligible to recover the cost incurred in restoring the car to a properly maintained state
from the employee.

3.18 In case services of an employee is terminated on account of disciplinary action during the
car facility period of five years, contribution made by the employee in full subject to
deductions as per Clause 3.15.2 will be refunded to the employee and car will be retained by
NTL provided it is found in satisfactory condition. If the car is found not to be in properly
maintained state, cost to restore the car to proper and acceptable state will also be deducted
in addition to the deductions as per clause 3.15.2 from the eligible refund amount.

3.19 In case the cost of repair work is re-imbursed by the Insurance Company, payment made by
the employee on account of necessary repair work will be returned.

3.20 Car will be replaced from the claim amount from the Insurance Company in case it is stolen,
snatched or involved in a major accident, subject to approval and receipt of Insurance
Claims.

3.21 Employees having their personal cars can transfer their cars under this facility subject to
conditions mentioned in Clause 3.9. If their existing cars are already on lease, they can
terminate or transfer their car lease to avail benefits offered under this policy, subject to the
approval of leasing company.
 3.22 Employee will have the option to re-lease a new car after completion of three years of first
car. After three years, 90% of the employee contribution will be returned to the employee
and car will be retained by the Company for disposal or otherwise. Car must to be in good
condition.

3.23 In case a manager selects a car from approved brands which has a price higher than his
existing limit of corresponding designation then additionally 45% of his current limit can be
adjusted in 60 installments thereby allowing him to buy a car on installments with 45%
additional price. This means that contribution from NTL would remain the same however
instead of paying higher than limit amount lump sum, you can have 45% of additional
amount in installments. And any additional cost like increased registration/insurance
cost etc due to higher level of vehicle will be borne by the team member. For example
AM/DMs limit is Rs. 1054000. Now an AM can have 45% of his limit adjusted in
installments which is Rs. 474300. So total buying capacity becomes Rs. 1054000 + 45% of
this limit = 1528300. NTLs contribution would remain the same.

3.24 In case a manager leaves the company and doesnt want to take the car along, he has to pay
Rs. 50000 as service/selling charges in addition to settling car related clearance matters to
compensate for the expense the company bears during a tedious process of selling the car
which includes but not limited to cost of manpower engaged in selling, advertisement in
newspaper, fuel, car service, movement from I9 where car is parked to office or different
show rooms etc.

3.25 If the company has to sell the car, its actual value is assessed by getting feedback from
authorized dealer and atleast two show rooms where the experts carefully review the
condition of the car and then put up a value. That price assessment is then compared with
market value of a similar car having reasonable condition. If the market value is more than
the actual value, the difference has to be paid by the manager as the company cannot share
loss due to misuse of the car.

4. Car Transfer to the next of kin

4.1 Any leaving manager who wants to take his car along with him and during clearance wants
his vehicle transferred directly from NTL in the name of his next of kin and not his own
name can do so but with following condition:-

4.1.1 First employee has to submit a written formal application requesting transfer to his
relative and duly signed by him.
4.1.2 The car can directly be transferred after settling all outstanding dues as per SOP and
clearance process ONLY to his father, mother, brother, sister, child or wife and
NOONE else.