IREDA Workshop on PMS/PRP at Visakhapatnam 31st August, 2012

IREDA Highlights NBFC as per RBI Classification Dedicated institution for Renewable Energy &Energy Efficiency Financing Recognized internationally –Multilaterals/ Bilaterals prefer working with IREDA Pioneer in RE&EE sector Profit earning & dividend paying ISO 9001:2008 Certified Company Cumulative sanction Rs.18712 crores since inception (as on 31.3.2012) Cumulative disbursement Rs.9723 crores since inception (as on 31.3.2012) IREDA MoU achievement for the last 2 financial years i.e. 2009-10 & 2010-11 - ‘Excellent’ Total Number of employees as on 31.3.2012 - 130 (Executives – 91 Non executives - 39)

Performance Management System in IREDA A Robust Performance Management System containing all the major requirements already in place and notified. Fair and objective system of evaluation of PARs. Evaluate the potential of the employee to assume higher responsibilities in the organization. Determine the gaps in knowledge and skills and/or shortcomings/ failure during evaluation and how these can be filled through training and/or counseling. Identify employees having skills development potential so as to suggest further training/ encouragement.

Performance Management System in IREDA PMS plays an important role for determine the Performance Related Pay. Different Appraisal proforma for Non-Executives, Non-unionised Supervisors, Executives and functional Directors. The appraisal proforma for E-8 level executives and functional directors, as per DPE norms Appraisal evaluation on 5 scale parameters.

PERFORMANCE RELATED PAY LINKED WITH PMS IN IREDA FACTORS MoU Rating Profitability of the Company during the corresponding year Incremental profit Performance of the individuals PRP percentage as per grade define by DPE Rating %age of PRP Payment as per MoU rating Linkage with Individual Rating Excellent/ Outstanding 100 100% Very Good 80 80% Good 60 60% Fair/Average 40 40% Poor Nil No PRP

PERFORMANCE RELATED PAY LINKED WITH PMS IN IREDA Notified a robust and transparent Performance Management System and Performance Related Pay system in line with DPE requirement. The employees are rated on 5 scales parameter viz. OUTSTANDING, VERY GOOD, GOOD, AVERAGE AND POOR. Constitution of ‘Moderation Committee’ to ensure compliance of Bell Curve Approach by defining Above Par, Par and Below Par employees. PRP system introduced in IREDA from FY 2009-10. 60% of PRP within the ceiling of 3% of PBT of current financial year. 40% of PRP out of 10% of incremental profit.(increase in profit as compare to previous year’s profit). Total PRP limited to 5% of the current year PBT.

REMUNERATION COMMITTEE Remuneration Committee constituted as per DPE norms for PRP distribution 1. Independent / Government Director (Two Members) Chairman / Member 2. Functional Director Member  

PRP DETAILS FOR 2009-10 AND 2010-11 Corpus for PRP IREDA MOU Rating for both FYs Excellent  Corpus for PRP Sl. No. Particulars Financial Years (Rs./crores) 2010-11 2009-10 2008-09 1 PBT for the year 166.69 141.04 85.90 a Incremental Profit during the year 25.65 55.14 - b 5% of PBT (Maximum eligible corpus for PRP) 8.33 7.05 c 3% of PBT (60% of PRP) 5.00 4.23 d 10% of Incremental Profit (40% of PRP) 2.56 5.51 e Total (‘c’+’d’) 7.56 9.74 f Total Corpus for PRP (lower of ‘b’ or ‘e’) g Total PRP paid for the year 1.12 1.11 2 Amount required for PRP   i 60% of PRP (to be paid from amount ‘c’) 0.67 0.66 ii 40% of PRP (to be paid from amount ‘d’) 0.44

BELL CURVE GRAPH (2009-10)

BELL CURVE GRAPH (2010-11)

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