GHCL HR Policies Group Insurance Schemes & Retirement Benefits Applicable as in May 2014 Vapi

Philosophy HR Policies, currently in force were amended in April 2012 or later. They have been modified based on the core values of the organisation and it is expected that the company and employees will adhere to these values in all mutual transactions minimising the need for extensive documentation. All Chapters of HR Policy & Procedure Manual and major amendments have been uploaded on GHCL Connect and accessed from the home page \ HR Corner. 11/15/2018

Part 1 H R Policies

Perks Brief Case – Entitlement – Level 3 and above but need based. Entitlement Limit Level 3 to 5 - Rs. 2000 Level 6 to 7A - Rs. 3000 Level 8 to 10 - Rs. 4000 Level 11 & Above - Rs. 5000 Life period of brief case is fixed at 3 years. First / Replacement request for a brief case is to be submitted to HR Department through HOD only.

Mobile Phone Entitlement - Need based Level - Handset price limit (Rs) 13 & 14 - Actual 11 & 12 - 12000 + 1000 09 & 10 - 10000 + 1000 07, 7A & 8 - 8000 + 1000 05 & 06 - 6000 01 – 04 - 5000 Below 1 - 4000 Life period of a handset is fixed at 3 years. Occasional servicing / battery replacement cost will be borne by the company if required. In exceptional cases, if phone is found to be damaged beyond repair by Admn. Dept during the 3 year period, replacement will be given without any recovery from employee.

Others Marriage Gift – Rs. 2,100/- Short Term Loan Objective – To help employees in urgent & unexpected financial needs. Entitlement – Equal to 3 months basic salary. Recovery in 24 EMIs. Can apply for another STL 6 months after full repayment of one such loan. Education Subsidy Scheme Eligibility – 3 years service in the company. Coverage – Professional courses relevant to role & function of employee as well as to the company business. Course Fee Limit – Rs. 2.50 Lacs. Disbursal – 50% on registration and 50% on completion of course. Bond period – 3 - 5 years – starting from reimbursement of final 50% of fee.

Rewards & Recognition On the Spot Award Exemplary Award To recognise and reward exceptionally good performance in executing a task. Merit for this award is decided by the Reporting Manager and the employee is awarded on the spot with a cash reward of Rs. 500/- . During 2013-14, 61 On the Spot Awards were given. Exemplary Award To recognise and reward exceedingly good continuous performance in one’s functional area or contribution in one activity which made a significant impact to the organisation. Currently, rewarded with a cash reward of up to Rs. 5,000 along with an appreciation letter from the Managing Director. During 2013-14, 08 Exemplary Awards were given. Long Service Award To commemorate 10 years of service in the organisation. During 2013, 07 employees completed 10 years and were given the awards.

Rejuvenation Initiatives Common Programmes Company contributes Rs. 250 per year for all employees to organise programmes such as Deepavali, Holi, New Year etc. Officers Club’s Programmes Company and employees give monthly contributions equally as given below to the fund to organise programmes like Get-togethers, Employee / Family Picnics, Sports events etc. 7A & above - Rs. 200 5 to 7 - Rs. 150 1 to 4 - Rs. 100 Staff - Rs. 50 Both common programmes and Officers Club programmes are organised by Utsav / Celebration Committees at each major location.

Part 2 Insurance Policies

Family Mediclaim Insurance Provider - United India Insurance Company Limited. Administration - Veraval Branch office Third Party Administrator - Genins India Administration - Ahmedabad Branch Office Coverage – Employee and 5 dependent family members (Spouse, 2 dependent children and employee’s parents). Other relatives not eligible to be covered. Annual coverage limit on Floater basis. Level 8 & Above - Rs. 6 Lacs Level 1 to 7A - Rs. 3 Lacs Staff & Sub-staff - Rs. 2 Lacs Generally, minimum 24 hours of hospitalisation necessary to be eligible to claim benefits. Post hospitalisation expenses for 60 days from discharge covered under the policy. Pre hospitalisation expenses such as consultation, tests etc. if led to hospitatlisation are also eligible for reimbursement.

Family Mediclaim - continued Daily Room Rent Limit - 1.5% of Coverage Time Limits to be adhered to: Intimation of admission - Within 24 hours. If on cashless basis, hospital will intimate. If on reimbursement basis, employee has to intimate. Intimation to be given to Ahmedabad Office of TPA. Submission of claim on reimbursement basis - Within 15 days of discharge (hospitalisation & pre-hospitalisation charges) Post hospitalisation expenses - Within 75 days of discharge. All documents are to be submitted in original viz. hospital bills, discharge summary, prescriptions, medicine bills, X-Rays, Test Reports etc. Expenses of non-medical nature, consumables not covered under reimbursement. If intimation of admission is not given within 24 hours or claim documents are not submitted within the specified time limits, Insurance Company will not be legally bound to honor the claim. Authority to take the final decision with regard to admissibility of a claim rests with the Insurance Company under IRDA regulations. GHCL, as the policy holder, can not influence such decisions.

Group Personal Accident Insurance Scheme Coverage is available for employee only. Limit – Up to 200 times of basic salary for executive cadre and up to Rs. 4 Lacs for staff / sub-staff categories. Provides risk cover on 24 x 7 basis. Loss of pay compensation available for period of absence from work due to accident. Benefit limited to 1% of 48 months basic salary or Rs. 7,500/- whichever is less for executives and Rs. 1,500/- for staff / sub-staff. Intimation of an accident is to be given to the Insurance Company within 24 hours of the incidence. Claim documents for loss of pay compensation to be submitted within 30 days of discharge / recovery of the insured.

Group Term Assurance Scheme Service Provider in 2014-15 – Birla Sunlife Renewed from – 1st June 2014. Coverage is available for executive level employees only. Policy provides life insurance cover against death, permanent / partial disability due to accidents or other reasons. Limit – Up to 30 times of basic salary. Provides risk cover on 24 x 7 basis. Intimation of death / accident is to be given to the Insurance Company within 24 hours of the incidence.

Employee Deposit Linked Insurance EDLI is linked with Provident Fund and is a statutory insurance policy available to all employees. An employee who contributes to the Provident Fund is automatically covered under EDLI Policy. Coverage amount of Rs. 1,32,000/- is payable to the nominee on death of employee. Not payable on partial / full disablement. Not limited to death by accident only. No change in coverage amount on account of age, service period, level, salary range etc. Current policy is taken from ICICI Prudential.

Part 3 Retirement Benefits

Provident Fund Rate of Contribution As per the current PF rule, 12% of Basic Salary & DA is contributed by both employee and employer. Out of the 12% of contribution of employer, lower of Rs. 1250 or 8.33% is deposited in Employee Pension Scheme. Deposit EPF Contribution is deposited every month in GHCL PF Trust. EPS contribution is deposited with Reg. PF Office. Employee, in addition can contribute additional amount as VPF (no matching contribution from company is payable). Taxation Contribution to PF and VPF by employee is exempted from tax under section 80C of IT act.

Superannuation Administration Managed by GHCL Superannuation Trust. Currently, Funds are being managed by ICICI Prudential, which invests funds in Debt and Equity Markets on behalf of the Trust. Exposure limit to equity decided by Trust. Disbursal / Claim Methodology Entitlement is @ 15% of basic salary up to annual contribution of Rs. 1 Lac. On retirement / separation, maximum 33% can be withdrawn in lumpsum. Balance OR 100% of accumulation to be used for pension. Commuted 33% is taxable amount for employee except in retirement cases. Service Tax @ 3.09% is deductible on conversion of accumulation to annuity. Pension received is a taxable amount for the individual.

Gratuity Administration Managed by GHCL Gratuity Trust. Currently, Funds are being managed by HDFC Standard Life, LIC etc. which invest funds mostly in Debt market and Govt. Securities. Rate of entitlement 15 days basic salary for every completed year of service. Disbursal / Claim Methodology Disbursed as part of the full and final settlement account with the company. If service rendered is less than 5 years, gratuity is not payable. Taxation Exempted from tax up to Rs. 10 Lacs. (Gratuity earned from previous employments are also included to compute the exemption limit of Rs. 10 Lacs). (Similarly, leave encashment received by employee on separation is tax exempted up to Rs. 3.50 Lacs – on combined employments).

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