VARIABLE POLICY – M BAND AND ABOVE FY - 18-19 13th june 2018

FY 17 -18 - CARRY FORWARD As a one time , the Board has approved a payment of minimum 25% of ESOP eligibility or the actual eligibility as per the KRA score, (whichever is higher) This minimum 25% of the ESOP is only payable for non achievement of the company’s EBIDTA score and not due to underperformance on other factors. This benefit would be discretionary and would not be available to employees who have grossly underperformed or been involved with any act of misconduct in the recent past The loss of ESOPs for FY 17 -18 that could not be allotted to the employees due to non achievement of EBITDA will be added to the entitlement of the individual employee across next four FY in equal value . This would be applicable only for those employees who are currently on the rolls of the company and have been impacted by the underachievement of the EBITDA and on the rolls of the company at the time of payout The carry forward amount would be calculated as under Band EBITDA Core KRA Score as per actual EBITDA (A) Variable Entitlement as per score A KRA Score considering 100% EBITDA achievement (B) Variable Entitlement as per score B To be paid now Carry Forward For next 4 years M1 10 90 0+80 = 80/100 50% 10 + 80 = 90/100 80% (80%-50%) = 30% M2 15 85 0 + 65 = 65/100 0% 15 + 65 = 80/100 25% (50% - 25%) = 25% M3 20 80 0 + 40 = 40/100 20 + 40 = 60/100 0% (25%) M4 / Chief 30 70 0 + 60 = 60/100 30 + 60 = 90/100 (80%-25%) = 55% GH 40 60 0 + 55 = 55/100 40 + 55 = 95/100 92.5% (92.5%-25%) = 67.5%

EBITDA RESPONSIBILITY FY 18 -19 Applicable for M Bands and above The variable (ESOP) for M3 Band and above will only be payable subject to company achieving its EBITDA as per Table 1 below It is proposed that for M1 and M2 we pay 50 % of entitlement as ESOP based on company achieving its EBITDA target as per Table 1 and balance 50% on their KRA scores based on the same criteria as per table 2 below Table 1 Table 2 % Company EBITDA Achievement for the FY 18-19 against the Target % Variable pay out Below 80% 80 – 83% 30% 84 – 87% 60% 88 – 91% 80% 92 – 94% 90% 95% and above Prorated % KRA achievement for the FY 18-19 % Variable pay out Below 80% 80 – 83% 30% 84 – 87% 60% 88 – 91% 80% 92 – 94% 90% 95% to 100% 100%

Application and Impact of EBITDA and KRA score It is proposed to split the EBITDA into SBU and Non SBU components and calculate the Variable for all sections of the company , other than SBUs, basis only the Non SBU component For GSP and Markets – xxxxx% of ESOP will be calculated basis Non SBU EBITDA score and xxx% from SBU’s EBITDA performance For Apparel Business – The applicable EBITDA is Company EBITDA minus SBU EBITDA KRA scores would determine Increments and promotions and 50% of variable entitlement of bands M1& M2 KRAs will not have EBITDA as a criteria. However the actual receipt of Variable will be prorated to the KRA score. E.g if you score 95% on your KRA then you would be entitled to 95% of the calculated Variable as per Table 1 in the earlier slide. This is to ensure underachievers do not get variable based on company performance For SBUs payment will be as per the achievement of their individual Business EBITDA