bharti beetel project

8/7/2019 Bharti Beetel Project

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BHARTI TELETECH

PROJECT REPORT

ON

"COMPANSATION BENCHMARKING"IN

Bharti Beetel

In the partial fulfillment of the requirement for theaward of the degree of

Masters of Business Administration from KURKSHETRA UNIVERSTY, KURKSHETRASESSION (2006-2008)

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a

key role in the success of any venture. In the present world of cut


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throat competition project is likely a bridge between theoretical and

practical working, willingly I have prepared this particular project.

First of all, I would like to thank the supreme power, the

almighty god who is obviously the one who has always directed me to

work on the right path of my life. With this grace this project could

become a reality.

I feel highly delighted with the way my dissertation report on

topic Compensation Benchmarking in BHARTI BEETEL has been

completed.

Any accomplishment requires the effort of many people and

this work is not different. Firstly, I would like to extend my sincere

thanks to Mrs Ansu Dhansoia HOD MBA Dept. DIET for her kind to

co-operation and providing me good environment to work on.

I would like to thank Mr. Narendra Dhansoia,T&P Officer, DIET

to provide me the fruitful guidance to complete the project. Finally, Iwould like to thanks all the faculty members and others people who

directly or indirectly help me completing the project.


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PREFACE

Research work is management parlance is extremely important for a

given close view of the relatives of the real life business issues. For any

management student who is striving to perform outstandingly, it is of

paramount importance that apart from theoretical knowledge the most also

gain some practical knowledge. Survey report deals specially with providing

an opportunity to management students to have some exposure in real

business world. My study topic deals with analyzing the compensation

benchmarking in Bharti Beetel . Management ideas without any action based

on them mean I nothing. That is why practical experience is vital for any

management student. Theoretical studies in the classes are not sufficient to

understand the functioning climate and the real problems coming in the

way of management of Men, Material, Machine and Money. Thus practical

experience acts as a supplement to the classroom studies. It offers an

exposure to real practical of management in various organizations. It

exposes invaluable treasures of expenses to a student.

This dissertation deals with the application of theory to know the

consumer preferences & customer satisfaction, through market survey &

research. It was my fortune to do this dissertation. I learned a lot of new

things which could never been learned from the theory classes. This

dissertation report is a presentation of my work.


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In the forthcoming pages, an attempt has been made to present a

comprehensive report concerning different aspects of my dissertation, the

overall knowledge gained by me will reflect in the report itself.

The employee is the vital asset of any organisation. Finally ten years

after the liberalization of Indias economy began. The market place has,

suddenly become tightening competitive. Not only have new players

stormed into the country, there are more tough competition then ever before

in every segment of every market.

The main objective of dissertation and project i.e. familiarization with

the necessary theoretical input and to gain sufficient practical exposure to

establish a distant linkage between the conceptual knowledge acquired at the

institute and practicing these concepts.


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CONTENTS

Sr No. Policy Area

1.ABSTRACT OF PROJECTABSTRACT OF PROJECT

2.2.RESEARCH METHODOLOGYRESEARCH METHODOLOGY

3.3.COMPANY PROFILE & BHARTI VALUESCOMPANY PROFILE & BHARTI VALUES

Company ProfileCompany Profile

Bharti Values, Vision & MissionBharti Values, Vision & Mission4.4. SERVICECONDITIONS

Definitions

Office Procedures

Code of Conduct

Inter Company Transfer

Inland Transfer Rules5. EMPLOYEE ENGAGEMENT

Human Resource Planning

6. COMPENSATION Compensation Structure for

EmployeeJE I Grade & Above

Compensation Structure forEmployee

Below JE I Grade

Variable Pay Scheme7. DATA ANALYSIS8.

BIBLIOGRAPHY9. RECOMMENDATION & CONCLUSION10. ANNEXURE

Questionnaire

ABSTRACT OF PROJECT:


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The main focus of the study under the project is to CompensationBenchmarking in the organization .

In 1985, Bharti TeleTech entered in to the technical collaboration withSiemens AG, the German technological giant and set up a Bharti plantin Ludhiana to manufacture telephones.

Come 2003 and Beetel has journeyed across eighteen years of creatinghistory. In 1991, Beetel manufactured phones for Sprint, theAmerican telecom mammoth. Shortly after, in 1993-94, came ISO9002 accreditations for the manufacturing units by this time two innumbers, at Gurgaon and Ludhiana. And in a short span of time, Beetelwas already the market leader. Cornering a third of the Indian market,Beetel became Indias Favorite Phone.

In between these years, while acclaim and achievements were flowingfast and steady, Beetel was initiating and implementing steps that

would take them beyond the borders of India. The immediate necessitywas to establish an in house research and development base. Thiswas necessary on two counts Firstly, to indigenes technologies for thelocal market, a d secondly, to pioneer new technologies that wouldbecome benchmarks for the world to aspire to.

Success came on both fronts and fast. The first telephone instrumentsget ISO accreditations, Indias first EPBT phone, the first to cross the 10million-unit mark and thereafter 20 million marks, the only Indiantelephone company to be present in 30 countries mapping 5continents, the biggest manufacturer of the world outside China. A

brand presents in every third I Indian home. The story of Beetel is oneof milestone, inspirational efforts, and teamwork and of an ambitionthat knew no bounds.


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METHODOLOGY:

The study is carried on in a proper planned and systematic manner.This methodology includes

Familiarization with the organization.

Observation and collection of data.

Analysis of data.

Conclusion and suggestion based on analysis.

HYPOTHESIS

The organization follows a systematic compensation structure, whichcontributes towards continuous flow of production without shortage oflabours.

SAMPLING

The study covers 20 executive, 40 employees/workers from differentdepartments/ sections of Nestle India Limited as sample in order toelicit relevant facts. Since it is not possible to approach each andevery manpower of the organization.

UNIT OF STUDY:

An executive and a worker irrespective of their position andplacements in any of the departments of the organization is consideredas unit of study.

SOURCES OF DATACOLLECTION:

The primary as well as the secondary sources was used for collectionof data. In primary source of data collection the interview scheduleand questionnaire and opinion survey were used and in secondary

source of data collection relevant records, books, diary and magazineswere used. Thus the source of data collection was as follows:


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SOURCE OF DATA COLLECTION

PRIMARY DATA SECONDARY DATA

1. Interview schedule 1. Diary

2. Questionnaire 2. Books

3. Opinion Survey 3. Other records

4. Magazines

The investigator used structural interview schedule, questionnaire andopinion survey for collection of data from primary source. Interviewschedules were used for workers clerical category and questionnaireswere used for supervisory and executive cadre and opinion survey wasused to know the technology, perceptions, thoughts and reactions ofthe executives, employees/workers and trade union members of the

organization.

The investigator used the secondary source like diary, books,magazines and other relevant records for collection of data to knowabout the industry as well as the respondents.

TABULATION, ANALYSIS AND INTERPRETATION:

After completion of data collection the editing of the responses goobtained was done. This edited data further codified and code bookwas prepared. On the basis of these tables the data were interpretedand analyzed and conclusion was drawn.

LIMITATIONS:


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Every scientific study has certain limitations and the present study isno more exception. These are: -

LIMITATION OF THE STUDY

1. Due to heavy work load and lack of time in the organization the

employee could not give more information.

2. Some of the necessary and important information has not given

since it is so confidential to the organization.

3. Interviewing of the executive of top echelon position who are

making recruitment is busy in the Organization State of affair.

So it is not possible to contact all of those every busy executives.

4. The terminology used in the subject is highly technical in nature

and creates a lot of ambiguity.

5. Confidentiality of the management is the strongest hindrance to

the collection of data and scientific analysis of the study.

6. ll the secondary data are required were not available.

7. Respondents were found hesitant in revealing opinion aboutsupervisors and management.

8. In spite of all these limitations, the investigator has made a

humble attempt to present an analytical picture of the study with

some suggestion for the long run implementation.


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COMPANY PROFILE


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Technology is mapping out a new world order today - a world in which individuals,organizations and countries are becoming increasingly interdependent andintegrated. Driven by the spirit of entrepreneurship, we at Bharti are making themost of the opportunities offered by this ever-changing scenario. Our world-classventures with our overseas partners have brought world-class products into the

country.

Bharti Teletech (BTTL) was established in the year 1985 with its first plant atLudhiana. The manufacturing activity commenced in 1987 with the first pushbutton telephone of India under the Beetel brand rolling out of Bharti TeletechsLudhiana plant. In a short span of time, Beetel has grown from strength tostrength and the company has crossed many milestones. Today Bharti Teletechhas two ISO 9000 certified plants with an annual capacity of 5 million units p.a.Bharti became the first company to manufacture cordless telephone andtelephone answering machines in India. It is also the first to launch SMS phoneson fixed line in the country thereby heralding a revolution in fixed line SMStelephony. In line with customer needs, Bharti was also the first to launch backlit

LED and GSM Interference free phones. We are the first Indian company tomanufacture 20 million phones. Today, one out of every three phones in India is aBeetel. With rapid growth over the years, Bharti Teletech today is the largestmanufacturer of phones in the Globe outside China.

Beetel has a range of over 35 models across basic, feature and cordless segmentsand continues to add a new model every month. With a current market share ofover 40%, Beetel is the first choice of the Indian consumer. In the growing privateservice provider segment, Bharti Teletech commands a lions share of over 90%.In the extremely competitive BSNL/ MTNL segment, we have crossed a marketshare of 50%. BTTL has successfully met the challenge of providing qualityproducts at competitive prices.

Exports is a huge thrust area for Bharti. In 1991, Bharti became the first companyto export phones to Sprint Inc. USA a recognition of our world class quality. Theexport operations have been highly successful over the years. In 2003-04, exportscrossed the half million mark - a quantum jump since we started. Today, we arepresent in 30 countries across 5 continents despite intense competition from thestrongest brands in the world. Brand building initiatives have also taken fruit inthe global arena. The Beetel brand is present in Vietnam, Iran, Chile, Oman,Bangladesh, Mauritius and Sri Lanka. This list continues to grow with each passingmonth and it is a matter of time before Beetel becomes a truly global brand.

Bharti has recently tied up with Atlinks to export 1 million GE phones (No. 1 brand

in residential and office telephony worldwide) over the next 2 years. This is thefirst time that Atlinks would be outsourcing from India against their 100% sourcingfrom China a testimony to Bhartis manufacturing strength. Its list of credits alsoinclude a contract with France telecom for supplies of our products for theirworldwide requirement as well as supplies to Telefonica, Peru - setting the basefor their global requirements.


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With rapid progress in technology, Bharti Teletech realized the need to set up astrong R&D unit to stay abreast in the technology era. Its in-house R&D isrecognized by the Deptt. of Science & Industrial Research, Govt. of India. Our R&Dteam has always been proactive in delighting the consumer with innovativeproducts. It has introduced 37 models in 2003-04 across basic, feature andcordless segments both for the domestic and export market. The revolutionarySMS phone, the award winning Millennium Clip Max, the DF5600 - first GSMInterference Free Phone have all found their birth in our R&D labs.

Bhartis ethos of bringing the best goes right down to its backbone-its humanresources. We, at Bharti, believe that the members of our group are most valuableand crucial resource. As part of our HRD philosophy, we provide a motivating

environment, which is conducive to effective utilization of human resources bymaximizing individual development and growth. This manual has been preparedto help you understand the Companys policies and explain the benefits theemployees will receive. Our HR department shall be pleased to provide anyclarifications or more information, if desired by any employee, at any time.


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BHARTI VALUES

CUSTOMER: We will be responsive to the needs of our customers

PEOPLE: We will trust and respect our employees

LEARNING: We will continuously improve our products and services

innovatively and expeditiously

COMMUNITY & PARTNERS: We will be transparent and sensitive in our

dealings with all stakeholders

VISION

Work expertly and passionately to make beetel the choice of customers inall markets we wish to enter worldwide. Ensure return to all stakeholderswhile upholding values and ethics.

MISSION

To be a dominant player in the Indian Ocean region for telecom customer

premise equipments and to obtain a meaningful share of the global demand

at Bharti Teletech.

We will work with passion to achieve this goal by creating core competencies

in design, manufacturing and delivery processes. In creating sustainable

value for our shareholders we would make responsible use of our resources

while being careful about the environmental effects of our processes.

We would always uphold human values, business ethics and be responsible

corporate citizens, contributing to the progress of the nation.


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DEFINITIONS


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Company

"Company" shall mean Bharti Teletech Limited, which includes it's units atLudhiana, Goa and other functional departments working for the same.

Employee

"Employee" means a person in the employment of the company other thanthe casual, work-charged, retainer or contingent staff or workman butincludes a person on deputation to the company.

Work Premises

"Work premises" include the precincts of the division and other places ofwork where an employee is deputed to work.

Establishment

"Establishment" means premises owned/leased/hired by Bharti TeletechLimited wherein any trade, business, profession or manufacturing processrelated to companys business is carried on or any work in connection with orincidental or ancillary thereto is carried on.

Rules

"Rules" means specific provisions of the policies existing and as may beamended by the management from time to time.

Service

"Service" means the period for which an employee has been in continuousservice, including service, which may be interrupted on account of sicknessor authorized leave or an accident or any cessation of work, which is not dueto any fault on part of employee.

Employment

Employment is a contract of service between the company and employeewhere under the employee agrees to serve the company subject to its controland supervision.

Employees are classified as :-

A) Permanent EmployeesB) Probationers


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C) TraineesD) ApprenticeE) Contractual

A) Permanent Employee means an employee whose appointment hasbeen confirmed in writing by the management.

B) Probationer means an employee who is provisionally employed to fill apermanent vacancy and whose performance shall be evaluated forabsorption in the permanent rolls of the Company.

C) Trainee means a person who has no prior relevant experience and whoshall be provided on the job training before absorption in thepermanent rolls of the Company.

D) Apprentice is a person who has no prior experience and who isprovided opportunity to undergo industrial training under theApprentice Act.

E) Contractual employee means a workman engaged by the contractorto carry out any unskilled, semi-skilled, manual or clerical work in theestablishment.


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OFFICE PROCEDURESa) Working Hours

Working hours for different classes and employees shall be notified by theCompany from time to time, and should be strictly adhered to.

b) Lunch Hours

Lunch break shall be of half hour duration.

c) Public Holidays

National & Festival Holidays to be observed by the Company shall beannounced at the beginning of each year.

d) Absence

Employees are expected to be at work each day as per schedule. In case ofsickness or an emergency, the manager concerned should be notified withintwo hours of starting time on that day.

e) Change of address and telephone

All employees are expected to notify their Manager and the HR Department

when there is a change in address or telephone number within two weeks ofoccurrence.

f) Attendance

All employees shall report for duty latest by the time mentioned in WORKING HOURS or as notified by the company from time to time.

If an employee is late more than three times in a month, he/she is liable to betreated as absent for half a day until the same is regularized by the HoD.

No employee after marking his/her attendance should leave the officewithout permission or sanction of his/her immediate superior.


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I) Procedure

All offices of Bharti Teletech shall maintain attendance register orelectronic time punching system at the place of work. On arrival allemployees shall mark their attendance. Where time punchingmachines are provided attendance shall be recorded by punching theirrespective cards. For employees in SMI & above grades, punching theircards at the time of arrival may not be mandatory.

II) Out-Door duty

While going out of office on official work, an OD slip is to be filled inand got signed by the authority concerned and sent to the Personneldepartment. In case the employee is detailed for out-door duty afterthe days work, then OD slip is to be submitted to the Personneldepartment on the day of return from OD. The format of OD slip isenclosed in (Annexure I).

g) Probation

The employee shall be on probation for a period of 6 months from thedate of joining duty. The management may, however, extend theprobation by another 6 months, if the performance of the employee isnot found satisfactory. On completion of probation and subject to theperformance being found satisfactory, employee shall be confirmedthrough a letter to this effect, issued by the Management.

h) Notice Period

a. During Probation

The employee can leave service of the Company by giving 7days notice in writing or basic salary in lieu thereof. Similarly,the Management may terminate the services of an employee bygiving 7 days notice or basic salary in lieu thereof.

b. On Confirmation

After confirmation, an employee in AGM and above gradeswould be required to give two moths notice in writing or basicsalary in lieu thereof, if and when he/she decides to leaveservice of the Company. Similarly, the Management mayterminate the services of employees in AGM & above grades by

giving 2 month's notice or basic salary in lieu thereof. For allother employees, the requirement of notice or salary in lieuthereof shall be one month, on either side. (Formats annexed)

i) Retirement

All employees shall retire on the attainment of 58 years unlessspecially required by the company in writing to continue in servicebeyond this age. The retirement would be effective from the last dayof the month in which they complete 58 years of age.


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CODE OF CONDUCT

All employees shall be at work in the establishment at the time fixed andnotified by the management. An employee attending late shall be liable tobe treated as absent.

All employees are strongly encouraged to make a distinction between officialcompany business and personal interests. For instance company material,equipment, tools, etc. are not for personal use.

Employees should avoid actions, which damage the reputation of thecompany.

Whenever an employee is invited to deliver speeches and attend meetings inrelation to his official duties, he should first take approval from theManagement by making a written request to the Personnel Department.

An employee is required to be conscious of time and cost issues and ensureno misuse of the same.

The following acts and omissions on part of an employee shall amount tomisconduct as per the standing orders/or otherwise :

Willful insubordination or disobedience, Going on an illegal strike or abetting, aiding/instigating or actingin furtherance thereof,

Willful slowing down in performance of work, Engaging in trade within the premises of the Establishment, Drunkenness or disorderly behaviour during working hours, Act subversive of discipline False claims/declarations (on non-compensation heads). Misuse of power / authority for personal gains. Taking out any property/document of outside the premiseswithout prior approval of the competent authority.


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7. For misconduct committed by an employee, the Company shall inflict

any of the following punishments: Warning Suspension Discharge DismissalThe rules applicable to the employee of Bharti Teletech Limited have beenframed with a view to govern the terms and conditions of the employeesConsequently, they can be altered/amended/modified/cancelled or new rulesadded from time to time.

In addition, employees would also be governed by the Bhartis Codeof Conduct, circulated separately from time to time.


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INTER-COMPANY TRANSFERS

Background

Bharti Enterprises with its ambitious growth plans is poised for majorexpansion in coming years. This will open up ample growth avenues withinthe Group for in-house talent. As per our corporate philosophy inter-companymovement for deserving employees to provide them opportunities in terms ofwider exposure, better growth and higher responsibility is encouraged.

Objective

The basic objective of this policy is to lay guidelines for affecting inter-company transfers.

Coverage

Management staff in grade MI and above shall come under the ambit of thisscheme. Other levels can be considered by concerned units themselvespurely on case-to-case basis.

Procedure

Interested employees shall make a written request indicating theirinterest in an opening within the Group. In case the person can bereleased, then such requests shall be processed through reportingauthority, functional head and Company HR Head.

Concerned HR Head shall then undertake the following procedures :

a) For Managers and below, the respective HR Departments of the twoconcerned Units/Companies shall deliberate on the candidature andinitiate all formal proceedings once the decision for movement istaken.

b) For Sr. Managers and above, concerned HR Head shall forward theircandidatures to Corporate HR, who will act as a nodal point for inter-company movements for such cases.

For both (a) & (b) above, the details of the candidate would be forwarded on

the format marked - (Annexure I).

Corporate HR will co-ordinate with Company where vacancy exists,arranging meeting/discussion, examine other relevant aspects and obtainnecessary approvals for such movements.


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In case both the units consent to affect a movement, formal orders shallbe issued by the relieving company to the concerned employee, who willjoin at the new place of posting on the date specified in the transfer letter.

Such transfers shall ensure Continuity of Service for terminal benefits.The Company receiving such employees shall release fresh Letter ofAppointment, with a clause mentioning Continuity of Service.

In case of each transfer that may be so affected, the total emoluments (asdrawn by the concerned employee in the relieving Company) shall beprotected by the receiving Company.

General

In order to boost morale, provide better growth opportunities to thedeserving employees and create healthy competition, companies should

encourage such inter-unit movements. This also provides continuity ofBharti culture and values at new locations / units.

Upon transfer he will be governed by rules, regulations and practices ofthe new location / company. His designation, grade and salary fixation willbe done keeping in view of the internal consistency at the new location /company.


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INLAND TRANSFER RULES

Employees receiving transfer orders, necessitating movement from onelocation to another, will be governed under the following rules.

Objective

An employee to relocate to a new city on official transfer.

To effect all movement from one location to another as smoothly aspossible.

Transfer Expenses

Mode of travel will be the same as mentioned in case of official tour.

Family shall include spouse, children and other dependents as perdeclaration made in companys job profile form.

Reasonable expenses incurred during the journey (i.e. from the station of

displacement to the station under transfer) like food, portage etc. shall beguided as per the Transit DA clause of the Inland Travel Policy

Baggage Removal Expenses

The company shall reimburse to the employee under transfer, actual

expenses made towards the transport of personal and householdbelongings, as baggage removal expenses (including packing andtransit insurance expenses).

In case the staff under transfer is maintaining a vehicle, the companyshall bear the transportation expenses of one personal vehicle by themost economical means to the station of posting / transfer. In caseswhere the employee drives his vehicle to the station of transfer, he mayclaim expenses, with prior approval of the management.

Transfer advance

The entire estimated expense of a transfer must have the prior approval ofthe HOD/Head of HR and CEO. The employee under transfer can takereasonable advance, wherever required.


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Tour prior to transfer

Management staff transferred to another station may undertake tours ofnot more than 7 days to the reporting station for arranging of a suitable

accommodation, school admissions of wards etc.

Such tours will be with the approval of the Head of Department (HOD).

Joining time

In addition to the actual time spent, a joining time of 2 days at the stationof departure and 2 days at the reporting station may be allowed to theemployee, subject to prior approval of the HOD/Head of HR.

This period will not be treated as leave.

Temporary postings

Transfers for less than six months duration will be treated as temporarypostings.

In such postings, transportation expenses of personal baggage, andwhere absolutely necessary, of the vehicle are reimbursed by the companyon prior approval of the competent authority. Where the temporary posting is of less than a month, DA will bepermitted as per the rules (as in official tours) after prior approval of themanagement. If the period exceeds one month, 50% of the DA shall be

payable.

The management may amend/modify these provisions on transfer at anytime, at its sole discretion.


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HUMAN RESOURCE PLANNING

Guidelines on Manpower Planning & Budgeting

Objective & Scope :

An essential pre-requisite of a world-class work force is a good humanresource planning system, which ensures that the right person is available forthe job. The Company would therefore need to review manpowerrequirement for projected workload in each ensuing year on a regular basis inthe form of a detailed and accurate Annual Plan. This plan would not onlyform the basis for recruitment and induction of quality manpower in theCompany, but would also provide inputs for redeployment in the Company.Methodology :

While reviewing manpower, factors to be considered would be as follows :-

Increase in business activity in terms of turnover, sales, production etc. Increase in level of automation / computerization Increase in productivity levels Extent of sub-contracting, ancillary development (wherever applicable)

Based on the above, detailed manpower requirement would be worked out byeach HoD of the Company with proper justification. The HR department wouldthen assess the requirement against present and future plans and ascertainthe justification for the position. All such individual requirements would thenbe co-ordinated and integrated by HR department. HR department, in

coordination with the concerned HoD, shall prepare the position description.

The complete plan, once prepared would throw up issues such as: Gaps in Manpower availability Gaps in Skill/Competency level Any modifications required in the existing Organization structure Productivity Ratios.

Once the Plan is finalized, level-wise requirement of additional personnelwould be worked out for each function. This would result in the recruitmentplan. An estimate of time frame would also be necessary to ensure that therecruitment exercise is carried out well in time to have the person in positionto meet the projected workload.Final Approval :

Once the Annual Human Resource Plan is finalized for the Company, it willthen be sent to Corporate for examining and final approval. The approvedplan will be used for the purpose of recruitment and other personneldecisions at the Company.


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Compensation structure for JE I & above grades

Objective

To drive Compensation on a Cost to Company (CTC) basis To streamline the compensation structure Allow flexibility in deciding the Compensation Structure

Coverage

All regular employees on rolls of the company in grade JE I & above grade


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Components of Compensation Structure

The compensation of employees is broadly classified as follows.

A) Cost To Company (CTC)

a. Fixed Cost To Company (FCTC)

b. Variable Cost To Company (VCTC)B) Perks which are not part of CTC

Compensation Structure

The Cost to Company (CTC) is the sum total of an employees Fixed Cost ToCompany (FCTC) and Variable Cost To Company (VCTC). The Fixed Cost(FCTC) is an assured monthly / annual payment and Variable Pay (VCTC) is alump sum payment on the basis of performance (based on certainparameters) paid at the end of the financial year.

The payout heads under each of these categories are as follows :

Fixed Cost To Company (FCTC)

Basic Salary (mandatory) Provident Fund (mandatory) Special Allowance House Rent Allowance /Company Leased Accommodation Conveyance Allowance Vehicle Hiring / Car EMI Fuel & Maintenance (including insurance) Reimbursement Drivers Wages Reimbursement Medical (Domiciliary) Reimbursement

Leave Travel Assistance Superannuation

Variable Cost To Company (VCTC)

Super pot Variable Pay Performance Linked Incentives (PLI) Exgratia / Bonus

Guidelines for fixing Flexible Pay Plan

HR will fix the employees Fixed Cost To Company and the Variable Payamount at 100% Performance at the time of recruitment / annualreview / midterm corrections (if any)

Each employee will finalize his / her compensation structure in thecompensation sheet attached as Annexure I, based on the laid down


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guidelines and declare the same at the time of joining / within 15 daysof communication of salary revision.

The employee can change his / her compensation structure only onceduring a financial year unless his / her compensation gets revisedduring that financial year.

Any balance outstanding in the name of the employee at the end ofthe financial year would be paid to the employee after deductingapplicable taxes in the last month of the current financial year.However, this excludes allocations made towards LTA as the balancemay be carried forward to the forthcoming year.

Procedure for Payment

1. The following components would be paid through the pay slip asmonthly allowance and would be shown as earnings:

Basic Salary

Special AllowanceHouse Rent AllowanceConveyance Allowance

2. The expenses on the following components would be reimbursed to theemployee to the extent of the entitlement, subject to production ofrelevant supporting (bills / receipts):

Conveyance ReimbursementFuel / Maintenance (including Insurance) reimbursementDrivers Wages

MedicalLeave Travel Allowance

3. Any unclaimed reimbursable amount towards Fuel & Maintenance,Drivers wages and Medical (Domiciliary) shall be paid as SpecialAllowance at the end of the financial year.

4. Claims are to be made in the specified format (MonthlyReimbursement Form) by the individual and submit to the HR / Admin.Department for verification. Employee can collect the payment from

the Accounts Department.

5. For Company Leased Accommodation & Vehicle Hire Charges,company would send cheques directly to the party / landlord.

6. Applicable amount towards PF & SA would be deposited in the relevantFund account of the employee.


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Fixed Cost to Company (FCTC) - Components

Basic Salary :

This is a mandatory component and is paid through the pay slip on a monthlybasis. The basic salary shall be an amount ranging between 30 40% of theindividuals FCTC. For existing employees, if their current basic is more than40% of their FCTC, the same % may continue. Provident Fund and Gratuityare linked as a percentage to the Basic salary, which is mandatory.

Provident Fund

This is a mandatory deduction as per law. Currently, it is fixed at 12% ofBasic Salary. The employee can however, opt for a higher % age (upto amaximum of 20%) as voluntary PF contribution, if desired. However, in anysituation, employers matching contribution would be up to a maximum of12%.

House Rent Allowance (HRA) :

The employee is free to allocate a fixed percentage of Basic Salary or have afixed amount allocated under this head only if the employee is not opting forCompany Leased Accommodation. This would be paid through the pay slip asHRA on a monthly basis.

Company Leased Accommodation (CLA):

Employee in E II grade and above may opt for Company LeasedAccommodation, instead of the House Rent Allowance. In such case, therental cheque shall be directly sent by the company to the landlord andwould be paid in advance for the month.

Self Lease: Company lease accommodation can include premisesowned by the employee and leased to company. Income of employeefrom self-lease would be his income from house property.

Security Deposit/Advance Rent for Company LeasedAccommodationMaximum amount of 3 months rent can be extended as Securitydeposit or advance rent. However, in case an employee is going forself lease or taking the house of any of his/her immediate family


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members/relatives, no advance rent or security deposit or brokeragewould be borne by the company.

The security deposit would be treated as imprest in the name ofemployees. In case of separation, it will be the responsibility of theemployee to get the security deposit and advance back for the purposeof final settlement.

Brokerage

If the Company Leased Accommodation is finalized through a brokerthen brokerage charges upto half months rent shall be consideredbased on proof. Brokerage charges would be admissible once in twoyears only and payable to Broker directly

The employee intending to get CLA would submit a written application. TheLease Agreement needs to be signed by authorized signatory.

Special Allowance :

Any unaccounted amount not opted / claimed under any other componentscould be accounted under special allowance. There is no restriction on theamount to be allocated under this component. This would be paid throughthe pay slip on a monthly basis.

Medical (Domiciliary) Reimbursement

Employees who are not covered under ESI scheme can decide an annualamount

upto a maximum of Rs.15000/- towards domiciliary medical.

The amount set aside towards domiciliary medical can be claimed throughthe claim form along with supporting bills, during the course of the year butnot more than once in a month. The year for the purpose would beconsidered as the financial year.

Leave Travel Assistance (LTA)

An employee who is not covered under ESI scheme can decide an amount forLTA for a particular year. The reimbursement would be made against theproduction of actual travel documents / supportings towards travel of self &family (spouse, dependant children & parents).

General:

LTA can be claimed after completion of one year of service with thecompany.LTA can be claimed at any time during the financial year.


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LTA can be claimed only after taking a minimum of five days Leave.

Employee can avail up to 80% of entitlement as LTA advance, notearlier than one month before the commencement of leave. Theadvance shall be adjusted against the claim to be submitted within amonth after return from leave. For LTA purpose, the entitlement shallbe calculated for a period from the last LTA claim to the month inwhich the next LTA is being claimed

In case, due to exigency of work, employee is not able to proceed onLTA leave, LTA amount can be paid as a Special Allowance. In suchcase, there would not be any need to take leave. However, thisamount paid as special allowance and would be fully taxable.

Employee shall be allowed to carry forward his/her LTA amount duringthe block of 4 calendar years (as per IT Act). If the employee does notclaim LTA during the specified block, the unclaimed LTA amount shallbe paid to employee as taxable salary on close of the 4 years blockperiod.

In cases of separation, LTA amount shall be paid on a pro-rata basis asspecial allowance and would be subjected to tax.

Note: Two LTAs in a block of four years are exempted from tax under ITrules. The block years as per IT Act are 2002 05, 2006 9, etc.


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Conveyance Allowance :

Conveyance Allowance is paid to take care of employees travel fromResidence to Office and back. Conveyance Allowance would be paid toemployees through the payroll. The grade wise limit of conveyance Allowanceshall be as per the table below:

Grade Conveyance Allowance(Rs. PM)

JE I 400

JE II 500

JE III 600

E I 700

An employees can take conveyance allowance higher than the specifiedamount but upto a maximum of Rs. 800/- PM by adjustment from his / herFCTC.

Conveyance Reimbursement :

Reimbursement of conveyance expenses would be allowed for official travel,related with the job requirements. Conveyance reimbursement shall be paidseparately through vouchers based on self-declaration. The grade wise limitof conveyance Reimbursement shall be as per the table below:

Grade Conveyance Reimbursement(Rs. PM)

E II 1000

MI 1500

M II 2000

Employees availing Vehicle Hiring Charges (car EMI) are not eligible forConveyance Reimbursement

Car Hiring Charge (EMI)

Employees in the grade M I* and above can choose to allocate the amount ofCar Hiring as per the table below. Car hiring charges would become payableonly when the car hiring agreement is signed. The vehicle should be in thename of employee, spouse, immediate relatives or close friends.

Grade Car Hire charges in Rs. Permonth as per Grade

SMII 11000

SM I 8000

M IV 6500

MIII 5500

M II 2600

M I 2600


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Based on the actual car EMI, the employee may take a higher CarHiring than the specified amount, mentioned in the above table, butupto 15% of FCTC ,by adjustment from his / her FCTC. The car EMIamount shall be calculated @ Rs. 3000/- per lac, based on the carvalue.

* For existing employees in MI grade, an additional car-hiring amount ofRs.2600/- will be given from the month in which he/she completes 10years service in Bharti group, subject to the employee entering into carhiring agreement.

The owner of the vehicle will have to sign an operating lease agreement withthe company as per the prescribed formats. The Administration departmentshall execute the agreement. The onus would be on the employee to get theagreement signed. Vehicle hiring rentals would be paid by cheque, directly tothe hirer / person in whose name the vehicle is registered.

Fuel & Maintenance (including Insurance) ReimbursementEmployees would be entitled to claim reimbursement of expenses towardsFuel & Maintenance (including insurance) as per the table below. This wouldbe applicable only when there is a Car Hiring agreement and thereimbursements would be against production of relevant bills.

Grade Fuel/Maintenance/InsuranceRs. Per month as per Grade

SMII 8400

SM I 7250

M IV 6350

MIII 5700M II 2000

M I 1500

Based on the actual consumption, the employee may take an amount higherthan the specified amount up to a maximum of Rs.15000/- pm, by adjustmentfrom his/her FCTC.

Fuel & Maintenance (including Insurance) reimbursement benefit can beavailed on monthly accrual basis by furnishing relevant bills/supportings.

For official commuting, employees would be entitled to claim reimbursementas per the prevailing mileage rate specified under the Local Conveyancepolicy.


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Drivers Wages

Employees in the grade of M I and above would be entitled to claim driverwages as per the table below. Driver wages would be applicable only if thereis vehicle hiring.

Grade Drivers Wages

SMII 3000

SM I 3000

M IV 2500

MIII 1800

M II & M I 1500

Eligible employee may allocate an amount higher than that specified in thetable above but upto a maximum of Rs.5000/- per month, by adjustment fromhis/ her FCTC. Employees availing this amount would be required to submit a

copy of the driving license of the driver engaged. This amount would bereimbursed in furnishing the receipt of payment made to the driver.

Superannuation

The employees in the grade of MI and above can choose to takeSuperannuation in their FCTC up to a maximum of 15% of the basic salary.The contribution amount opted by the employee shall be deposited by thecompany to their Superannuation fund. The employee can come out of thesuperannuation trust as per the guideline of superannuation scheme.


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Variable Cost To Company (VCTC)

1) Super pot.

Super pot is an incentive scheme to drive the top-level team to achieve thebudgeted targets. The scheme, the amount of super pot and the persons whowould be covered under the scheme would be solely decided by the VC & MD.As per the existing scheme, on achievement of the budgeted cash profittarget for the year, the top team would be entitled to a super pot in the ratioof their fixed salary for the year. The list of eligible employees and kitty forsuper pot every year shall be approved by the VC & MD at the beginning ofeach financial year.

Super pot would be paid as lum-sum amount.

2) Performance Linked Incentives

The senior level employees are covered under Performance Linked Incentive(PLI) scheme. The employees under PLI shall sign off their KRAs at thebeginning of the financial year and assessment shall be done at the end ofthe financial year based on achievement of their KRAs.

3) Variable Pay

The Variable Pay has been introduced in the salary structure of employees(non PLI) effective from April 01, 2004. The variable pay shall be paid at the

end of the financial year in accordance with the laid down performanceparameters. The performance parameters for grant of the variable pay foreach financial year would be informed to employees separately.

Variable Pay component would be paid as lump sum amount.

4) Exgratia / Bonus

Based on performance of the company, Exgratia / Bonus shall be decided andshall be disbursed during Diwali time. Bonus shall be paid to all employeeswho are covered under Bonus Act. However exgratia payment shall not bemade to an employee who is not on the rolls of the company at the time of

disbursement.


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Other Benefits (Not part of CTC)

Gratuity

All employees on the permanent rolls of the company are eligible for gratuityon completion of 5 years continuous services in the company as per rules ofgratuity trust.

The amount of gratuity payable after 5 years continuous services will be 15days salary for every year of completed service in the company calculated onthe basis of 26 days a month on the last salary drawn immediatelyproceeding the date when the Employee becomes entitled to the gratuity. Asper the provisions of The Payment of Gratuity Act, the limit for gratuity iscurrently Rs. 3.5 Lacs. In case the actual gratuity amount is higher than theprescribed limit, the company shall pay the higher amount over the

permissible gratuity amount as ex-gratia.

ESI

From April 01, 2004, employees who are drawing a salary (as per thedefinition of salary under ESI Act) less than Rs.7500/- per month are coveredunder ESI Act. The employers contribution will be an amount equivalent to4.75% of the Salary while employees contribution would be 1.75% of thesalary. All other terms and conditions would remain the same and governedby the Act.

Group Personal Accident Insurance

All employees would be covered under the Group Personal AccidentInsurance scheme.

The maximum amount insured is linked to the salary slabs as follows:

Salary Range (allcomponents for ESIsalary)

Coverage in LacsMedical Death Coverage Total

More than 75001 3 12 1525000 75000 3 7 10

20000 24999 2.5 6.5 912000 19999 2 6 87501 11999 1.75 5.25 7Up to 7500 1.25 3.75 5* Salary means all components which are included in the salary definition

under ESI


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Mediclaim Insurance Policy

All regular employees who are not covered under ESI Act, would beentitled to claim reimbursement of the annual premium amount paid formedical insurance for self upto a maximum coverage limit as per the tablegiven below :

The employee would be reimbursed 50% of the premium paid for a

medical insurance of each family member, subject to a ceiling of Rs. 250per annum per member. Family for the this policy would be defined as aunit of maximum three members - Spouse and two children/dependentparents only.

General

All necessary formalities for obtaining mediclaim policy for self and familymembers would be completed by the employee directly with theinsurance company. Similarly, the employee would also settle all claimsfrom the insurance

Club Membership

Employees in grade SM I and above shall be reimbursed the monthlysubscription for one club on actual but not exceeding Rs. 4800/- per annum.No entrance fee is payable. The employee should either be an existingmember of that club or obtain membership on his / her account.

Membership fees of professional bodies

Employees in grade MI and above can claim reimbursement of themembership fee in respect of their membership of recognized professionalbodies. The reimbursement shall be supported by proof.

The limits for reimbursements are as under:

Grade No. of professional

bodies

Max. entitlement(Rs.) PA

SM I & II 2 1,000/-

Grade / Level Maximum Coverage limit (Rs.)CEO 3.00 LacsSM I SM II 2.00 LacsMI ~ M IV 1.00 LacsE II & below 0.50 Lacs


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M I to M IV 1 500/-

Credit Card Membership fees

The Company may reimburse annual subscription of select credit cards themonetary limit in respect of annual subscription fee shall be as under:

Grade Max. entitlement (Rs.) PASM II 2,000/-

SM I 1,000/-M I to M IV 800/-

Brief Case / Bag

Brief Cases / bag may be provided by the Company from time to time to suchemployees who require this facility in line with their official duties. All suchitems would be deemed as Companys property and may be reclaimed by thecompany, at its sole discretion any time during the course of employment orat the time of separation.

The limits for reimbursements shall be as under:

Band Max. entitlement(Rs.)

SM I & II 3,000/-M III to M IV 2,500/-MI to M II 2,000/-

Replacement can be given after 3 years. Depreciation will be calculatedaccordingly and no recovery would be made from the employee if the itemsare older than the period specified.

Official Mobile Phone

Employees in the grade MIII and above shall be entitled to official mobilephone.

Employees in below MIII grade may be provided official mobile connection

strictly on need basis, on the recommendation of HOD & PersonnelDepartment. The final approval for official connection is that of CEO. Therequest for official mobile connection should clearly explain the justificationfor the same.

In case of official mobile connection, the company will pay the monthly billdirectly to Airtel. All employees who are provided the official mobileconnection have to segregate personal STD / ISD calls before the finalpayment to Airtel


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Official Residence Phone

Where employees have been authorized residential telephone, rental, localSTD, ISD call charges for official purpose only are paid by the company in thecase of personnel of grade MI and above.


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Annexure I

Compensation sheet

Name DesignationGrade Dept

CTC PA for the year ____________ Effective dateFCTC PA for the year ____________ VCTC PA for the year___________

Break up Take Home Calculations (permonth)

Components Amt Opted (Rs.P.M)

Monthly throughpayroll

Basic (Min 35% of FCTC) Basic

HRA HRA

Special Allowance Special AllowanceConveyance Allowance (novehicle hiring chargesapplicable)

ConveyanceAllowance

Provident Fund(@12% ofBasic)

Deduction forEmployeeContribution to PF

ESI as applicable Deduction forEmployeeContribution to ESI

Flexible Pay Reimbursementclaimable on

production of bills(Flexi Pay)

LTA

MedicalReimbursements

Vehicle Hiring(not toexceed 15% of FCTC/or amount specifiedwhichever is less)

Petrol/VehicleMaintenance

Drivers Wages

Superannuation (applicable

for Assistant Managers andabove)FCTC (Flexible Cost toCompany) per Month (A)VCTC (Variable Cost toCompany) Per month.

Annual Payout of PLIon achievement oftargets at 100% level

CTC As PM Net Payable PerAnnum before Taxdeduction


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I understand that the above break up given on this sheet would be taken asfinal break up w.e.f -------------- and valid till there is any revision of my totalcompensation.

Signature of Employee: Date:

Signature of CompensationManager


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Third Party Lease

LEASE AGREEMENT

(Stamp Duty will be as per Stamp Act)

This Deed of Lease is made on this ____ day of _________ between ___________

S/o/ D/o _________ R/o ________________ hereinafter unless otherwise

designated called the Lessor (which expression shall unless excluded by

or repugnant to the context or meaning thereof be deemed to mean and

include his heirs, executors, administrators and assigns) of the One Part AND

Bharti Teletech Limited, a Company incorporated under the Companies Act

1956, having its registered office at D-195, Okhla Industrial Area, Phase I,

New Delhi 110 020 here in after called the Lessee (which expression shall

unless excluded by or repugnant to the context or meaning thereof include

their successors and assigns) of the Second Part and Mr./Ms.

______________________ S/D/W/o ___________________ employed as

_______________________by Lessee, hereafter referred to as confirming Party

(which expression shall unless excluded by or repugnant to the context or

meaning there of be deemed to mean and include his heirs, executors and

assigns ) of the Third Part

WHEREAS the Lessor is the owner of (address of property)

______________________________________________________________________________

consisting of __ bed rooms, __ drawing, ___ dining, Kitchen, __ Toilets &

Balconies, fitted with modern fittings and fixtures hereinafter called the said

premises.

AND WHEREAS the Lessor being desirous to give on lease and the Lessee

having agreed to take the said premises on lease from the Lessor for the

residential purpose of the confirming party is executing this Agreement on

the terms and conditions contained hereinafter.


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NOW THIS LEASE AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY

AND BETWEEN THE PARTIES AS FOLLOWS :

1. The Lessor hereby agrees to permit the Lessee the use and occupationof the said premises for the residence of (name the confirming Party)

_______________________________ and his family only (the confirming

Party). The Lease shall stand terminated in case the confirming party

_______________ is transferred out or leaves the employment of Lessee

and the notice of such termination is given in writing to the lessor

either by the lessee or the confirming Party.

2. The effective date of commencement of the lease shall be

_____________ and shall be for a period of ____ months when it shall

stand automatically terminated. The lease can be renewed for a

further period of _____________ on the consent of the parties hereto on

mutually agreed terms reduced in writing.

3. The Lessee shall pay to the Lessor in advance a monthly rent of

Rs.___________(Rupees _________________________________________) on or before

7th day of each month. The Lessee also agrees to deposit an interest free

security deposit equal to --------- months of rent amounting to Rs . ------------

(Rupees ------------) refundable upon the expiry of the lease. The refundable

security deposit will remain deposited with the Lessor during the whole

period of lease without interest. In the event the security deposit is not

refunded upon the expiry / earlier termination of the lease, the Lessee shall

be entitled to withhold the possession of the said premises without any

liability to pay the monthly rent till such time the entire security deposit is

refunded.

4. All charges for electricity and water consumption for the said premises

shall be paid by the Confirming Party directly as per the bills received

by him.


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5. The Confirming Party shall keep the Interior of the said premises in a

good condition along with all the fixtures and fittings, subject to normal

wear and tear and acts of God.

6. Neither the Lessee nor the Confirming Part shall make or permit to be

made any alteration or additions in the said premises without the

previous consent in writing of the Lessor. The Confirming Party shall

be entitled to install air conditioners and other electrical fittings and

extension of wiring whenever necessary which will have to be removed

and premises restored in original condition on expiry of the lease or

earlier termination thereof.

7. The Lessee and or the confirming party shall permit the Lessor or their

servants/agents or workmen and any other person so authorized by

the Lessor to enter upon the premises at all reasonable hours during

the day for viewing and inspecting the condition of the said premises

and to effect such repairs that may be necessary.

8. AND the Lessor doth hereby covenant with the Lessee as follows :

a) To pay all charges including municipal and other rates and taxes

levied in respect of the said premises and any increase thereof.

AND the Lessee and the Confirming Party dothe hereby covenant with

the Lessor as follows :

a) Not to do / cause anything in the said premises which may

become a nuisance / danger / annoyance to or in anyway

interfere with the comfort of other residents of the locality and

not to use the said premises for any illegal / immoral / any other

purpose other than as stated above.


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AND IT IS FURTHER AGREED AS FOLLOWS :

9. The Lessee may terminate this agreement at any time by giving one

month notice in writing to the Lessor.

IN WITNESS WHEREOF THE LESSOR, LESSEE AND THE CONFIRIMG PARTYHAVE HEREUNTO SET AND SUBSCRIBED THEIR RESPECTIVE HANDS THE DAYAND YEAR HERE IN ABOVE WRITTEN.

SIGNED AND DELIVERED BY THE WITHIN NAMED LESSOR

_______________________

SIGNED AND DELIVERED BY THE WITHIN NAMED LESSEE

________________________AUTHORISED SIGNATORY

SIGNED BY THE WITHIN NAME CONFIRMING PARTY

_______________________


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UNDERTAKING

(To be executed on Ten Rupees Stamp Paper)

1. I am at present working as ________________ in Bharti Teletech Limited

(hereinafter referred to as The Company).

2. At my request, the Company has agreed to hire for me residentialaccommodation at (give full address)________________________________________________. I undertake and agree that iffor any reason I cease to be in the employment of the Company, or die, or amtransferred out or for any reason whatsoever, which the Company may deemfit and proper, then I or my legal heirs shall forthwith (unless permitted by theCompany in writing) vacate the aforesaid accommodation and deliver vacantpossession thereof to the Company.

3. I undertake and agree to indemnify the company in respect of all claims bythe landlord of the said premises including claims on account of water,electricity and other charges.

4. I shall use the premises only for residential purpose and shall not in anymanner sublet, assign or part with the possession of the aforesaid premises inpart or whole.

5. I shall abide by all terms and conditions of the lease deed dated ______________regarding hiring of the aforesaid premises executed by the Company.

6. If I fail to comply with any of the aforesaid obligations, then apart form theother remedies open to the Company, I shall also be liable to pay to theCompany damages, costs and expenses incurred by the company due to suchnon- compliances.

7. The terms of this Deed shall be equally binding upon my heirs, executors,administrators and legal successors.

8. I also further undertake that if for any reason, the Lease Deed entered into bythe Company with the Landlord is terminated / comes to an end, I undertaketo collect a sum of Rs. ________ (Rupees ___________ only) from the Landlordpaid to him being the refund of security deposit with the Landlord. I alsoundertake that in the event of any shortfall in the recovery of security deposit,I shall make good of the same to the Company.

9. I also hereby empower, authorize and give my full consent to recover theamount equivalent to any shortfall in the recovery of security deposit or anyother dues payable by the landlord to the Company, form my salary, bonus,gratuity and any other dues which will become due to me or my legal heirs bythe company.

(EXECUTANT) - Signature : ________________- Date : ________________


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WITNESSES

1. Signature : ____________ 2. Signature :_____________ Name & Address : ___________Name & Address : _____________


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SUB-LEASE AGREEMENT

(Stamp Charges as per the Stamp Act)

This Sub-Lease Agreement is made on this ___ day of _____ between BhartiTeletech Ltd., a Company incorporated under the Companies Act, 1956,

having its registered office at D-195, Okhla Industrial Area, Phase I, New Delhi

110 020 hereinafter unless otherwise designated called the Lessee (which

expression shall unless excluded by or repugnant to the context or meaning

thereof include their successors and assigns) of the One Part

AND

_____________(Name of the employee), _________________ (designation &department) S/o / D/o ___________ R/o ____________ hereinafter called the Sub-

Lessee (which expression shall unless excluded by or repugnant to the

context or meaning thereof be deemed to mean and include his heirs,

executors, administrators and assigns) of the Other Part.

WHEREAS:

The Lessee has taken on lease the property located at

_____________________________________________(Address of the property) from

__________________ (the lessor) as per Lease Agreement dated ______________.

The said property consisting of ___ bed rooms, ___ drawing, ___ dinning,

Kitchen, __ Toilets & Balconies, fitted with modern fittings and fixtures

hereinafter called the (said premises).

The Lessee having taken the said premises on lease on behest of the Sub-

Lessee and Sub-Lessee having requested the Lessee to obtain on lease the

said premises on his behest, the said agreement is being executed for giving

on sub-lease the said premises to the Sub-Lessee on the terms and

conditions contained hereinafter.


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NOW THIS SUB-LEASE AGREEMENT WITNESSETH AND IT IS HEREBY AGREEDBY AND BETWEEN THE PARTIES AS FOLLOWS:

1. The Lessee hereby agrees to permit the Sub-Lessee the use and

occupation of the said premises for his own and his familys residence

only. The Lease shall stand automatically terminated in case the Sub-

Lessee is transferred out of Delhi or leaves the employment of Lessee or

the Lease Agreement dated between the Lessor and the Lessee gets

terminated.

2. The effective date of the commencement of the lease shall be

_________ and shall be for a period of ___ months when it shall stand

automatically terminated. The sub-lease can be renewed for a further

period __________ on the consent of the parties hereto on mutually agreed

terms and the Lease Agreement between the Lessor and the Lessee

getting renewed.

3. The Sub-Lessee shall pay to the Lessee in advance a monthly rent of

Rs._________ (Rupees____________________________ ) on or before 7th day of

each month or the amount of rent may be adjusted at the time of

payment of Salary for the month to the Sub-Lessee, which ever is earlier.

4. All charges for electricity and water consumption for the said premises

shall be paid by the Sub-Lessee directly as per the bills received by

him/her.

5. The Sub-Lessee shall keep the Interiors of the said premises in a good

condition along with all the fixtures and fittings in the same condition in

which these have been given to the Sub-Lessee at the time of handing

over the possession, subject to normal wear and tear and acts of God.

6. The Sub-Lessee shall not make or permit to be made any alteration or

additions in the said premises without the previous consent in writing of

the Lessee. The Sub-Lessee shall be entitled to install air conditioners and

other electrical fittings and extension of wiring whenever necessary which

will have to be removed and premises restored in original condition on

expiry of the lease or earlier termination thereof.


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7. The Sub-Lessee shall permit the Lessor or their servants / agents or

workmen and any other person so authorized by the Lessor to enter upon

the premises at all reasonable hours during the day for viewing and

inspecting the condition of the said premises and to effect such repairsthat may be necessary.

8. AND the Lessee doth hereby covenant with the Sub-Lessee as follows :

a) To ensure that all charges including Municipal and other rates and

taxes levied in respect of the said premises and any increase thereof

are to be paid by the Lessor.

AND the Sub-Lessee doth hereby covenant with the Lessee as follows :

a) Not to do / cause anything in the said premises which may become a

nuisance / danger / annoyance to or in anyway interfere with the

comfort of other residents of the locality and not to use the said

premises for any illegal / immoral / any other purposes other than as

stated above.

AND IT IS FURTHER AGREED AS FOLLOWS:

9. The Lessee may terminate this agreement at any time by giving one-

month notice in writing to the Sub-Lessee.

IN WITNESS WHEREOF THE LESSEE AND SUB-LESSEE HAVE HEREUNTO SETAND SUBSCRIBED THEIR RESPECTIVE HANDS THE DAY AND YEARHEREINABOVE WRITTEN

SIGNED AND DELIVERED BY THE WITHIN NAMED SUB-LESSEE

SIGNED AND DELIVERED BY THE WITHIN NAMED LESSEE

(AUTHORISED SIGNATORY)


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VEHICLE HIRING SCHEME

Dated:--------

Mr. --------------------

Bharti Teletech Limited

This is with reference to your request vide application ----------- for availingthe benefit of the Vehicle Hire Scheme. We wish to inform you that yourrequest has been accepted subject to the following conditions:-

1. That you have been working with the company i.e. Bharti Teletech Ltd. as------------ since -----------.

2. We understand that the nature and scope of your job responsibilitiesentails considerable traveling for official purpose.

3. That you have/ shall arrange at your own cost/expense a car either by hire/ ownership / leasing for use by you for official purposes, for the effective

performance of your duties.4. That the company shall pay a fixed hire charges ofRs. ------ (Rupees -----------------

only) per month to the addressee or the owner / lessee of the vehicle, ---------------

w.e.f---------------- as indicated by you towards official traveling/running associatedwith vehicle subject to deduction of Income Tax at source, if any such hire charges

are subject to review at the sole discretion of the company and may also be

withdrawn at any time.

5. That all the rights/liabilities/claims/damages/demands vis--vis the saidvehicle including accidents/thefts/damages/insurance, statutory chargesor any other rights/duties shall be your sole responsibility and liability andcompany shall not be involved in or liable in any manner whatsoever.

2

6. That subject to clause 4 hereinabove, the paying of such hire chargesshall immediately come to an end from the date of termination ofemployer/employee relationship between the Company and the yourself,subject to renewal if asked for.

7. That you are required to enclose a photocopy of the RegistrationCertificate and Insurance cover note of the said vehicle for readyreference. You shall inform the HR & Administration immediately of theftor loss/sale any damage as per Vehicle Hiring Scheme.

8. The car rented to the company will NOT be hired to any other party till theperiod of validity of said agreement with the company.

For Bharti Teletech Ltd

I hereby declare that I have read the above terms and conditions. I havereceived and signed this letter in the spirit of its contents and accept theapplicable instructions for availing the benefit of Vehicle Hiring Scheme.

(Employeessignature)

---------------------------


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Compensation structure for employees below JE I grade

Coverage

All regular employees on rolls of the company in below JE I grade

Basic Salary:

The basic salary shall be an amount ranging between 30 40% of theindividuals total salary. This would be paid through the pay slip on a monthlybasis.

Provident Fund

This is a mandatory deduction as per law. Currently, it is fixed at 12% ofBasic Salary. The employee can opt for a higher % age as voluntary PFcontribution, if desired. However, in any situation, employers matchingcontribution would be up to a maximum of 12%.

House Rent Allowance (HRA) :

All employees shall be eligible for HRA as mentioned in the table below.

GradeUSI to US II 10% of BasicS I to SIII 15% of BasicAT I to AT III 20% of Basic

Conveyance Allowance:

Employees shall be paid conveyance as follows through the salary slip.

Grade Conveyance Allowance (RS) PMUSI to US II 100

S I to SIII 150AT I 200AT II 250AT III 300


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Special Allowance :

Special Allowance is not fixed as per grade. It is individual specific amount toadjust his / her total salary. This would be paid through the pay slip on amonthly basis.

Medical Reimbursement

Employees who are not covered under ESI scheme shall be paid medicalreimbursement @ 8.33% of basic. The medical reimbursement shall not beover above the salary but will come out either from the existing componentsor from the annual increment

Leave Travel Assistance (LTA)

An employee who is not covered under ESI scheme would have up to one-month basic salary as LTA for a particular year. The LTA shall not be overabove the salary but will come out either from the existing components orfrom the annual increment. The reimbursement would be made against theproduction of actual travel documents /supporting towards travel of self &family (spouse, dependant children & parents).

General:

LTA can be claimed after completion of one year of service with thecompany. LTA can be claimed at any time during the calendar year.

LTA can be claimed only after taking a minimum of five days Leave.

Employee can avail up to 80% of entitlement as LTA advance, notearlier than one month before the commencement of leave. Theadvance shall be adjusted against the claim to be submitted within amonth after return from leave. For LTA purpose, the entitlement shallbe calculated for a period from the last LTA claim to the month inwhich the next LTA is being claimed

In case, due to exigency of work, employee is not able to proceed onLTA leave, LTA amount can be paid as a Special Allowance. In suchcase, there would not be any need to take leave. However, this amountpaid as special allowance would be fully taxable.

Employee shall be allowed to carry forward his/her LTA amount during

the block of 4 calendar years (as per IT Act). If the employee does notclaim LTA during the specified block, the unclaimed LTA amount shallbe paid to employee as taxable salary on close of the 4 years blockperiod. The block years as per IT Act are 200205, 2006 9, etc

In cases of separation, unclaimed LTA amount shall be paid on a pro-rata basis as special allowance and would be subjected to tax.


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Other Benefits (Not part of the salary)

Gratuity

All employees on the permanent rolls of the company are eligible for gratuityon completion of 5 years continuous services in the company as per rules ofgratuity trust.

The amount of gratuity payable after 5 years continuous services will be 15days salary for every year of completed service in the company calculated onthe basis of 26 days a month on the last salary drawn immediatelyproceeding the date when the Employee becomes entitled to the gratuity. Asper the provisions of The Payment of Gratuity Act, the limit for gratuity iscurrently Rs. 3.5 Lacs. In case the actual gratuity amount is higher than theprescribed limit, the company shall pay the higher amount over thepermissible gratuity amount as ex-gratia.

ESI

Employees who are drawing a salary (as per the definition of salary underESI Act) up to Rs.7500/- per month are covered under ESI Act. The employerscontribution will be an amount equivalent to 4.75% of the Salary whileemployees contribution would be 1.75% of the salary.

Group Personal Accident Insurance

All Employees would be covered under the Group Personal AccidentInsurance scheme.

The maximum amount insured is linked to the salary slabs as follows:

Salary Range Coverage (in Rs. Lacs)Medical Death

CoverageTotal

12000 19999 2 6 87501 11999 1.75 5.25 7Up to 7500 1.25 3.75 5

* Salary means all components which are included in the salarydefinition under ESI


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Mediclaim Insurance Policy

All regular employees who are not covered under ESI Act, would beentitled to claim reimbursement of the annual premium amount paid formedical insurance for self up to a maximum coverage limit as per thetable given below :

The

employee would be reimbursed 50% of the premium paid for a medicalinsurance of each family member, subject to a ceiling of Rs. 250 perannum per member. Family for this policy would be defined as a unit ofmaximum three members - Spouse and two children/dependent parentsonly.

Exgratia / Bonus

Based on performance of the company, Exgratia / Bonus shall be decided andshall be disbursed during Diwali time. Bonus shall be paid to all employeeswho are covered under Bonus Act. However exgratia payment shall not bemade to an employee who is not on the rolls of the company at the time ofdisbursement, in case he / she is not covered under Bonus Act.

Grade / Level Maximum coverage limit(Rs.)

Below JE I 0.50 Lacs


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Variable Pay Scheme

Objective

This scheme is prepared in line with our philosophy of linking compensationto both the companys performance and individual performance

Applicability

All regular employees in the grade of JE I and above, not covered under PLIscheme.

Guideline for Variable Pay

The ratio of Ffixed pay to Variable Pay is given below.

SN Grade Fixed: VariablePay

1 M III & above 80 : 20

2 M I M II 85 : 153 JE I E II 90 : 10

For Existing Employees: All non PLI employees, who achieve a performance score of 51 or above outof 100 (as per existing appraisal system) would have a certain %age takenout from their increment and added to variable pay till the desired ratio offixed: variable salary is attained.

For New Employees:The grade wise variable pay shall be built in their Compensation structure

Scheme

The pay out on account of the Variable Pay will be dependent uponthe companys as well as individuals performance as per thefollowing guidelines.

The company would decide at the beginning of each financial year,the performance parameters which will determine the payment ofvariable pay

For Financial year 2004-05

1. Company Performance, 10% weightage will be given to Cashprofit of the company. The different level of achievement isgiven below:

( Table 1)Parameter Achievement levels % Achievement on Companys

performanceCash Profit More than 110%

budget125%

Upto 110% of budget 110 %


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Budgeted 100%More than 90% ofBudget

90%

70% -90 % of budget 75%

1 Individual Performance 90% weightage will be given to individualperformance as per the existing Performance Management System(PMS). The different level of achievement is given below:

( Table 2)Parameter Achievement levels % Achievement on Companys

performancePerformance score asper existingPMS

91-100 125%

81-90 110 %

71-80 100%

61-70 90%51-60 75%

Process

1. HR Department shall calculate individual performance score fromthe existing Performance Management System (PMS) and companyperformance from the cash profit figure, approved by the corporateoffice.

2. Based on companys & Individual performance, the variable payearned would be calculated and shall be communicated to theemployee in his / her increment letter.

Sample Calculation.Parameter Amount in Rs. PACurrent Fixed Salary (2003-04) 2,00,000/-Variable Pay for 2004-05 5,000/Variable Pay on Account of Company Performance (A)

Variable Pay Kitty on account of companyperformance

500/- (10% of Rs. 5000/-)

Cash Profit as per Corporate Office Rs. 110 Mn (81%achievement)

Variable Pay achievement as per table I 75%

Variable Pay Payout 375/- (75% of Rs. 500/-)Variable Pay on Account of Individual Performance (B)

Variable Pay Kitty on account of companyperformance

Rs. 4500/- (90% of Rs.5,000/-)

Individual Performance Score as per existingPMS

65

Variable Pay achievement as per table II 90%Variable Pay Payout 4050/- (90% of Rs. 4500/-)


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Total Pay out

Variable Pay out Company performance (A) Rs. 375/-Variable Pay out Individual Performance (B) Rs. 4050Total Pay out - Company +IndividualPerformance (A+B)

Rs. 4425/-


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DATA ANALYSIS

1. Challenging Jobs at Bharti Teletech Limited

All the employees in the middle level management think that their jobs

is challenging.

2 Equality and openness with reference to works

The employees feel that there is 100% equality and openness with

references to work

3 Reward systems for best employee

Here again, every employee accept that there is a reward system in

the organization.

4. Support of technologies Changes

Every employee in the organization does support the technological

change.

5. Present quality of work life


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Employees are 100% satisfied at their present quality of work

life. People in the organizations satisfied with present quality of

work life because of the working environment and flexibility. But

it can be improved more because of salary.

Every employee in the organization is satisfied with the present

quality of their life. But they are not totally satisfied with the

present working

Conditions/salary paid by the company and the individual growth in

the company.

An employee feels that there should be flexibility of timing

because their office is too far from the main city and they

depend on the company bus services. At the same time

employees feel the situation of the office at outskirts of Delhi is

inconvenient. Although the company provides bus as a form of

transportation's convenience but traveling is tiresome.

So far the salary is concern most people in the middle level

management feels that it is good. Rest people it is average good

because they are comparing the other organizations and they

feel they are doing more work as compared to the salary. The

people in the middle level management feel that the salary paid


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by the company is not quiet satisfaction of compared to other

organizations.

Employees are also comparing the benefits with some other

organizations benefits; they are working, the children's education

allowance and the vocational allowance and special allowance

for the 'A' class city.

Employees feels that they are not totally satisfied with the

opportunity for individual career growth because they are getting

training on the job only and they are not sending out side the

organizations for the specific

training's. Mostly in this organizations) they are giving

emphasize in organization goal rather than individual

developments.

Every employee are finding their job as challenging according to

data collected they have a liberty to work under specific

objectives assigned by Head of Dept. for the particular work only

assign individual are responsible for the given task, they have

full freedom to take action for the respective work.

They set their own target and try to achieve the target within the

given time, they feel also challenging because they set their own

daily target and try to achieve the target. they feels


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challenging because of the motivation given by the organization

to achieve the target.

When we questioned to Ms Shalini Rath HR about the job

challenging, she told their job is directly related to organization

job and of they give maximum output. So the entire employee

feels that their job is challenging. There is no suggestions of

private life and the official life actions to most employees they

feel that there should be cons ritualism in the organization i.e.

there should be separate of private life and official life.

With reference to the source of equality and openness in nature

of work, the collected data reveal that employees are totally

satisfied because the interaction and communication process is

smooth. There is no hierarchical

flow of communication. So they feel that they hence a liberality, to

approach of the organization.

For motivating the employees there is reward and self appraisal

system. if they give maximum output they know that their efforts

will be rewarded, so it will be helpful to extract maximum from

an individual and it will be helpful in improving the working

condition the organization and they have self appraisal and


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performance appraisal by HRD person. In the performance

appraisal the HRD gives the feedback to the employees how they

improve their working stage and the nature towards their work.

They support the technological change because they want to

keep themselves pace with the competitive world.


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RECOMMENDATIONS:

Score cards allotted by the HOD should be transparent.

Performance judgments should be based on clearly defined KRAs.

360o Appraisal should be implemented instead of the existing 180o

Appraisal System.

Additional work should be given due weight age as they consume a

substantial portion of their work time.


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Flexi timings should be introduced in certain department. E.g.

Exports department due to nature of work.

In order to avoid monotony, Job Rotation should be introduced.

When a person/ head of department goes on leave a notice should

be circulated in that particular department and department, which

deals directly with that department so as to ensure the proper flow

of information. The notice should also say who w

bharti beetel project

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