HR DEPARTMENT

Zuari HR Vision
We believe in employee satisfaction and engagement believes in continuously evolving, building new practices to develop the people and organisation The of this department is the General Manager Mr George Ninan and the Deputy General Manager . This department task is to maintain harmonious industrial relations and tries to keep the workers happy .There are 6 people working under this department.

DEPARTMENT HIERARCHY

General Manager Deputy General Manager

Chief Manager

Senior Manager Manager

Assistant Manager

PROCESSES IN HR
MANPOWER BUDGET The Management periodically reviews its manpower requirements for that year. The HR Division co-ordinates recommendations of various Sections for their manpower Special approvals of Management

requirements and obtains management approval.

Committee may be obtained for certain additions/deletions during the year.

MANPOWER RESOURCES For recruitment of suitable personnel, candidates are drawn from the following resources Internal candidates Employment Exchange Applications on active files Campus interviews Advertisements in newspapers Placement Agencies

CATEGORIES OF EMPLOYEES REGULAR EMPLOYEE - Regular employee is an employee on the permanent rolls of the Company, whose appointment is confirmed in writing, after successful completion of the probationary period, if applicable. PROBATIONER - Probationer is an employee who is employed against a permanent vacancy but has not been confirmed in writing. MANAGEMENT TRAINEE - Management Trainee is engaged on stipend for specified period to be absorbed in regular vacancy after successful completion of his training. CONTRACT EMPLOYEES - Contract employees are those engaged for a specific service under contract.

MANAGEMENT TRAINEES
The Company depending upon its requirement, recruits management trainees in the following disciplines. Mechanical Enginnering Human Resource Management Instruments Engineering Agriculture The trainees are recruited through campus interviews or by open advertisements. The Chemical Engineering Electrical Engineering Business Management

trainees are taken for 12 months training /-. During the period of Training , they are rotated to various departments in the company to give them comprehensive exposure about the companys values, culture, Mission and Business strategies.

On completion of training, the trainees are absorbed in salary group M06. The trainees are provided free company accommodation on sharing basis, if available, during the training period.

Designation M01 M02 M03 M04 M05 M06 M07 General Manager Dy. General Manager Chief Manager Senior Manager Manager Assistant Manager Officer

STANDARDS OF EMPLOYMENT
Minimum qualification for employment in Management Group is University degree in the particular discipline. Preference, however, is given to individuals with specialized training and experience in the functional area. Fresh Engineering Graduates with Post Graduate qualification in Management (any professional discipline) and fresh Chartered Accountants are inducted in salary group M06. The age limit for employment in entry position is normally 25 years. The Management may, however, offer employment to Management employees at various levels within the age group 25-40 years. The upper age-limit may be relaxed for employment of Senior Managers.

REQUISITION FOR EMPLOYEES

To fill vacancies in approved positions or for replacement of regular employees the concerned Supervisor processes the prescribed requisition form for employment, which is approved by Department Head and forwarded to HR&A Division for review and for obtaining concerned Vice Presidents and Executive Presidents approval and for necessary action.

SCRUTINY OF APPLICATIONS

The HR&A Division scrutinizes applications of candidates who meet prescribed qualifications, age and experience requirements and short lists the candidates for review by the concerned department. Suitable candidates are then called for interview either at the location of employment or at a convenient location.

INTERVIEWS-MANAGEMENT POSITIONS
The interviewing panels for selection of Management employees are drawn from different disciplines and are constituted as follows: Senior Management positions: - The panel members are nominated by the Executive President in consultation with the concerned Vice President and Chief Vice President HR. Other Management positions: - The panel members are nominated by the concerned Vice President in consultation with Chief Vice President HR.

REIMBURSEMENT OF EXPENSES
Outstation candidates called for interview are reimbursed travel expenses only, for class of travel applicable to similar category of regular employees (See Travel Policy). Other incidental expenses such as conveyance, lodging, etc. are not paid by the Company. In case of Senior Managerial positions incidental expenses as stated above may be paid at the discretion of the VP / Executive President.

PHYSICAL FITNESS
Employment of a regular employee is subject to his being declared medically fit by Company's Chief Medical Officer or Registered Medical Practitioner designated by the Company. Where medical examination is arranged by the candidate himself with Company's approval, medical examination fees thereof are on Company Account.

LETTER OF APPOINTMENT
Upon final selection and subject to the concerned candidate declared medically fit, a letter of appointment is issued to him outlining the terms and conditions of service applicable to him. The letter of appointment of an employee taken against permanent vacancy is signed by the Vice President concerned.

REFERENCE ENQUIRIES

Immediately upon employee joining the Company's services, the HR&A Division sends out enquiry letters relating to employee's conduct, character, and performance in the previous job, if any, to the following : The references given by the candidate. Previous employer.

The replies are secured sufficiently in advance before the concerned employee completes his probationary period. If any adverse observations are received they are brought to the

attention of the Department Head / Vice President concerned.

EMPLOYEE PERSONAL FOLDER

The HR&A Division maintains, for each employee, a confidential file containing all necessary employment records and important correspondence relating to the employee.

ORIENTATION OF NEW EMPLOYEE

The HR&A Division acquaints the new employee with the Organization structure and rules and regulations of the Company as well as the benefits and perquisites applicable to him and helps the employee to complete all formalities such as filling of various forms including joining report before the employee is assigned to the concerned department. The concerned Department inducts the employee so far as the Departmental work is concerned. In case of Technical Staff, arrangements are made by concerned department to ensure that the employee is supplied uniforms, helmet, safety shoes, etc. Employee is also advised of the various facilities available in the Township and nearby towns.

PROBATIONARY PERIOD
The probationary period for regular employee in salary group MO4 to MO7 engaged against permanent vacancy is 6 months. The probationary period may be extended by 3 months, if in the opinion of the management; concerned employee has not demonstrated his suitability for the position during the initial probationary period. To assess employee's performance during the probationary period, prescribed appraisal report form is forwarded by HR&A Division to concerned department. The report is prepared after completion of 5 months from the date of employment. If the employee's probationary period is extended, a final report is prepared one month prior to the date the employee is due for confirmation.

CONFIRMATION
If the employee is to be confirmed / absorbed in Company services on successful completion of his probationary / training period, the necessary advice is given in writing on the due date of confirmation / absorption.

TRANSFERS
The employees are transferable from one department / division to the other or to the sister / associate / subsidiary companies. Circulars regarding transfers are drafted by Compensation and Benefits sections and signed by the concerned Vice Presidents.

NOTICE PERIOD FOR TERMINATION/RESIGNATION

The services of management employees are terminable with three months' notice on either side. In the event an employee, for special reasons, requests the management for early release, but not for reasons of employment elsewhere, the notice period may be waived at management's discretion or adjusted against privilege leave due to the employee and/or settlement dues, if any.

RETIREMENT
The employee retires on attaining age of 58 years. The effective date of retirement will be the last day of the month in which 58 years are completed.

CLEARANCE MEMO
The HR&A Division initiates the "Clearance Memo and follows the completion of the same before it is forwarded to Financial Accounts. The final account of an employee separating from the Company's services on account of termination / resignation / retirement is settled by Financial Accounts.

EXIT INTERVIEW
The concerned Department Head / HR&A Division may hold an exit interview of the separating employee, to ascertain the reasons for separations. Significant reasons, if any, are brought to the attention of the Senior Management.

SERVICE CERTIFICATE
On request, the HR&A Division issues Service Certificate to an employee separated from Company's services. The Service Certificate is limited to stating the employee's period of service in the Company, his final designation, last salary drawn and the reason for leaving. The certificate also states that the Company will be pleased to respond to specific queries upon request.

RE-EMPLOYMENT OF EX-EMPLOYEES
The Company policy is normally not to consider ex-employee for re-employment. However, in exceptional cases, the Company may consider re-employment of ex-employee provided The concerned ex-employee had left the services of the company in good standing, and

had a satisfactory performance and conduct record. The ex-employee is considered fit/acceptable for re-employment in the available

vacancy, as judged by the management. The ex-employee, if employed, will not be given past service credit, nor shall the earlier

service be considered for the purpose of gratuity and/or such other benefits.

TRAINING AND DEVELOPMENT

The Company's training programme encompasses training, both within and outside. Employees are assigned to training programme based on need as revealed in the annual appraisals of employee or as indicated by the concerned Departmental Head/Vice President. Within Company, training programmes also called in-house training programme, are organized for groups of employees and conducted by faculty consisting of Senior Managers, guest faculty, etc. Employees are also nominated, to participate in seminars, conferences, and training courses organized by professional bodies, and Management Institutes of repute.

Employees nominated for a training course fills in, upon return, a programme evaluation questionnaire, to ascertain the value of a training course and determine the extent of future participation. The questionnaire is sent to HR&A Division after it is discussed with

immediate Supervisor. Human Resources & Administration Division maintains training record of each employee nominated for training course within and outside Company.

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal process focuses on the goal setting approach throughout the organisation. Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees. It increases organisational effectiveness and also has positive effects on recruitment. The process of performance appraisal involves the setting up of standards which will be used as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them the standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

OBJECTIVES
To inculcate performance culture To identify talent gap To identify training need To decide compensation Succession planning

PERFORMANCE APRAISAL MANAGEMENT SYSTEM MANAGERIAL ATTRIBUTES

Attribute 10 9 8 7 6 5 4 3 2 1

Job knowledge Understanding of activities for which the employees is currently responsible policies and procedures applicable for his work Cost/ profit Consciousness Endeavours towards optimum utilization of available resources and elimination of waste. Generating money making ideas

excellent Excellent knowledge of his job and related functions

Very good Good Knowledge his own job. Fair Knowledge related functions

good Adequate of knowledge of his own job. Keen to learn. of

Unsatisfactory Knowledge of job much below what is required. Makes no effort to learn.

Always makes optimum utilisation of resources. Constantly reduces cost, eliminates waste and makes suggestions to improve profitability

Generally makes optimum utilisation of resources and endeavours to reduce cost and wastage

Utilises resources well and conscious of eliminating waste.

Wasteful in utilisation of resources and not interested in cost reduction.

Planning, organisation and control Effectiveness in anticipating work in logical order and devising efficient methods to attain predetermined plans

Exceptional ability to anticipate future needs and works in logical order to meet plans and monitor system to accomplish Optimum results.

Anticipates work needs and prepares action plan. Good in arranging work to meet plan and accomplish desired results

In systematic and result oriented. Good organiser and effectively plans his work

Very unsystematic and not methodical in work. Does no planning at all

Initiative/

Drive/ Always

self- Never waits to Thinks out and Always requires

perseverance Self reliant and has ability to move forward without outside direction. Basic urge and energy to get things done.

reliant and exceptionally good at applying mind to get things done. Is a self-starter. Closely follows up to competition.

be told for getting things done. Overcomes obstacles independently. Good follow up.

thinks independently. Requires instruction occasionally. Follows up for action.

to be told. Does not apply mind to get things done. Poor follow-up.

EVELUATING KEY RESULT AREAS

Performance focus key strategic objectives (filled by hay group) Achieve....YOY growth and gain 20% market share How (key result areas) Weight age Key accountability Metric (suggested) Target for FY 1112(expected results) 10% market share Minimum margin of rupees 500 per traded product

Minimise cost

Financial

Customer

Expand product mix of fertilizers

One stop shop as agri service provider

Sustain and gain market share across product categories Achieve revenue profitability and margin targets in fertilizers and agri services business as per budget/product wise Minimise inbound logistics and import cost of finished products Achieve energy efficiency targets from operations Long term imports agreement for cost leverage-raw materials and finished products Minimise operations and maintenance cost Minimise logistics cost Develop new grades to improve farm yield Tie-up with global producers to import micronutrients Identify opportunities in agricultural space to expand product basket Tie-up with global producers to import

10%

Commercial functionmarketing Commercial functionmarketing

Market share across product categories Profitability of product mix margins from traded business

5%

10%

Commercial procurement

Rupees per tonne

5%

Operations

Energy efficiency targets Rupees per tonne

Commercialprocurement

Operations

Rupees per tonne

5%

Commercialprocurement Commercial functionmarketing/technical services Commercial functionmarketing Commercial functionmarketing

Rupees per tonne No. Of new grades produced for commercialisation % increase in product sale % increase in product sale % diversification in agri services business % increase in product sale

5%

Commercial procurement

Enable improvement in farm yield

quality hybrid seeds, agro chemicals and pesticides Educate farmers to enhance agriculture productivityfarmers contract programmes Development of model farm

5%

Commercial functionmarketing

% diversification in agri services business Success of farmer contact programmes- % participation Success of farmer contact programmes- % participation No. Of new grades produced for commercialisation

Commercial functionmarketing

Establish soil testing labs to develop new grades

Commercial functionmarketing

Performance Focus

Key strategic objectives (filled by hay group)

How ( Key result areas)

Weightage

Key accountability

Metric (suggested)

Target for FY 1112(Expec ted Results)

Long term securitization of raw material supply

Identify opportunities to secure ownership of raw material within India and abroad Long term raw material locking with supplier to ensure uninterrupted supply Implementation of feedstock conversion for production

Commercialprocurement

Commercialprocurement 5% Projects

Process Optimise production capacities

Back ward integration to enhance raw material storage capacity and optimise logistics Identify opportunities for green field and brown field expansion and improved logistics support Ensure asset utilisation by optimising existing production capacities Debottlenecking of existing capacities through retrofitting and revamping and continuous improvement Ensure availability of funds to support expansion and capital expenditure for future growth at lowest cost Expand distribution and dealership productivity Training of field marketing staff to expand product portfolio

Projects

Timely availability of raw material to support business plan due to new Timely availability of raw material to support business plan Timely implementation of gastification projects no of sources of raw material identified Timely completion of projects % increase in production capacity by X% % increase in production capacity by X% % improvement in production % achievement of energy efficient targets Timely availability of funds at lowest cost % increase in sales Within 18 months

10%

MD special projects

5%

Operations

Operations

Finance

People/capability

Strengthen distribution network Enhance marketing capabilities to strengthen Attract train and retain talent Provide an enabling and performance oriented culture Provide an enabling and performance oriented culture Organisational capability enhancement future growth

10%

Commercial function marketing Commercial function marketing

10%

% increase in sales no of training mandays Number of inducted No. training hours People

Tie up with technical institutes for hiring skilled resources Build robust training programs for skill development

5%

HR Operation /HR

Develop long term incentive plan for key emloyees

HR/MD

Attrition Rate

Ensure employee satisfaction

5%

All function head

Employee satisfaction scores

Robust succession planning for key business areas

MD

Identified successors for all key positions

COMPENSATION AND BENEFITS

CANTEEN FACILITIES
The Company provides Canteen facilities for all employees at Zuarinagar. It provides tea/snacks and lunch/dinner services to the staff at fixed timings. It provides service in the canteen premises as also in the plant at fixed timings. The Company subsidies the cost of food. The food items in the canteens are sold on coupons. Each employee is given coupons worth Rs.90/- (Rs.180/- full value) per month. The quantity and rates of different food items in the canteen are fixed by the Company in consultation with the Canteen Committees. The Contract Labour canteen caters to the needs of the contract labour engaged by various contractors.

HOUSE MAGAZINE
The Company publishes Bi-monthly a House Magazine "HAPPENINGS" for limited circulation to employees and Company contacts. Employees contribute articles of interest, poems, short stories, etc. to the Magazine. The Magazine also contains information of interest to employees. Editorial Board, with a Chairman nominated by the Company coordinates publication of the Magazine.

WEDDING GIFTS
The Company gives to the employees on the occasion of his/her wedding on receipt of an invitation card, gift cheque of Rs.751

SERVICE AWARD
The employees are eligible service awards on completion of 10 years, 20 years and 30 years of service, as under:

10 year service award 20 year service award 30 years service award-

- wrist watch - Silver salver Gold coin 20 grams.

The employees are e also eligible for retirement gift of Rs. 10000/-, on retirement.

JAI KISAN CLUB

The Club has been established to organize sports, games as well as social and recreational activities for its members. The amenities provided include indoor

badminton and tennis courts, table tennis, an auditorium, billiards, library reading room and dining room with catering facilities. Membership is open to all employees of the Company Management as well as NonManagement month. In addition, special membership may be granted with Company approval to long-term resident guests, senior officers of contractors engaged by the Company and local citizens of repute. The Club is managed by a Managing Committee consisting of a President, Vice President, Secretary, Treasurer and four members. The President and one member are nominated by the Management and other members are elected by the members of the Club.

STAFF ESTABLISHMENT
PRIVILEGE LEAVE

Employees are eligible to 30 calendar days privilege leave each

ENCASHMENT Employees are permitted to encash privilege leave upto 30 days provided minimum 5 days privilege leave is availed

SICK LEAVE Employees are allowed upon confirmation, 15 days sick leave each calendar year for person

CASUAL LEAVE
There is no quantum of Casual Leave. However, it is expected that management employees do not avail casual leave of more than 10 days in a year

MATERNITY LEAVE
Maternity leave is granted as per law in force from time to time.

EMPLOYEE RELATIONS
Wage Settlement Wage settlement is done between the union and the management every three years Zuari has a local union named Zaclou it also looks after the grievances of the workers. The union comprises of the president and general secretary will be reporting in general/ day shift as the case may be during the tenure of their respective offices. They will report at the regular place of work and do their normal duties. They will be released whenever required by the management with the prior permission of the supervisor . No other committee member will be permitted to engage in union activities during working hours except of actual participation in discussions with the management during negotiations on charter of demands ,or other major discussions as required by the management

OCCUPATIONAL HEALTH WELLNESS SAFETY

SAFETY INCENTIVES Safety Incentive Schemes are introduced to minimize lost time reportable accidents. The following schemes are in effect presently Inter group safety award contest - The sections are grouped together as per the accident potentiality. The high risk group upon completion of 6 months, without making any reportable loss time accident, will be eligible for a gift worth Rs. 100/-. The less accident potential group upon completion of one year without making any reportable loss time accident, will be eligible for a gift worth Rs.125 SAFETY TRAINING New entrants are given brief induction training on safety subjects and general technical subjects are discussed before an employee is put on the job, Training Programme is attached. They are also given First Aid and Fire Fighting training. SAFETY WEEK Safety Week is celebrated every year with the following programmes from March 4th Safety contests such as posters, essay, slogans etc. Speeches by expert speakers from outside the Company. First Aid Contest Safety exhibitions. Safety talks by Section Officers to their staff. Elocution Contest. Fire Drill Breathing apparatus wearing contest. Safety Quiz contest

During the safety week employees are provided safety equipments such as uniforms, rainwear ,PVC shoes

SAFETY AUDIT Company conducts Safety Audit through external independent agencies and alternate year Internal Safety Audit to check any variation / deviation of the system. HAZOP study is carried out before carrying out any modification. Safety Audit recommendations, implementation is monitored GROUP HEALTH INSURANCE SCHEME Employees are covered under Group Health Insurance Scheme for reimbursement of medical expenses by the Insurance Company, in case of hospitalisation. The policy covers employee, spouse and minor dependent children upto the age of 21. Major children upto age of 25 yrs. may be covered by payment of extra premium. This scheme is not be applicable for children who are 25 years of age and above. The policy also covers the dependent parents till the age of 85 years . The initial premium as well as any increase in premium at subsequent annual renewal dates due to coverage of parents, will be borne by employee and will be recovered from annual domestic medical reimbursement of the employee GROUP PERSONAL ACCIDENT INSURANCE Employees are covered by Group Personal Accident Insurance Policy, the premium for which is paid by the Company. The coverage is against temporary total

disablement for a sum equivalent to 24 months salary plus HRA, ( Wherever applicable), subject to a maximum of Rs.3,00,000/- and, against death and / or permanent total / partial disability, for a sum equivalent to 60 months' salary plus HRA, (wherever applicable).

SPECIAL MEDICAL FACILITY The Company provides Special Medical Reimbursement, in case of specified

illnesses. The Special Medical Policy is as under The policy is applicable where the expenditure incurred relates to cases which are specifically excluded from the purview of the Group Health Insurance

Scheme, such as congenital defects or anomalies and other serious diseases, such as Cancer, TB, Kidney failures, serious heart diseases etc. and accident cases, involving long treatment and expenditure, in excess of the amount reimbursable by the insurers. A maximum amount of Rs.75,000/- is

reimbursable in the cases falling under this category.