Remuneration of employees largely consists of basic remuneration, perquisites, bonus & performance incentives. The components of the total remuneration vary for different grades and are governed by industry pattern, qualifications and experience of the employee, responsibilities handled, individual performance, etc. The main objective of the remuneration policy is to motivate employees and to promote excellence in their performance, recognize merits and achievements, retain talent in the Company and finally, to promote the feeling of belongingness.
| Particulars |
Remuneration to Managing Director |
Remuneration to Chairman (Non-executive Director) |
| Terms of Appointment |
The term of Pramoud Rao, as Managing Director was renewed for a period of 5 years vide agreement dated March 1, 2007. The terms and conditions and remuneration payable were approved for a period of 3 years, by the requisite majority of shareholders, vide postal ballot resolution dated April 30, 2007. Remuneration paid during 2008-09 is as under:
| Salary (including Basic, HRA, Special Allowance, CCA) |
Rs. 6,822,600 |
| Commission |
Nil |
| Medical |
Rs. 15,000 |
| LTA |
Rs. 96,000 |
| PF |
Rs. 9,360 |
|
The Central Government has approved the payment of remuneration to Manohar Bidaye, Chairman and Non-executive Director, for a period of 5 (five) years w.e.f. April 1, 2007 with an overall ceiling limit of Rs. 800,000/-. During the financial year ended March 31, 2009, he was paid monthly remuneration of Rs. 400,000/- for rendering his advisory services to the Company. |
| Contractual basis |
Appointment of Managing Director is on contractual basis. |
The appointment is not on contractual basis. |
| Commission & fixed Components |
Commission upto 2% of net profits for each financial year (as may be decided by the Board) and other fixed components which forms part of remuneration |
Manohar Bidaye is not entitled to any commission on the net profits of the Company. |
| Notice period for severance |
Notice period for severance of Managing Director is 6 (six) months. Compensation for severance of services would be computed in accordance with applicable provision of Companies Act, 1956. |
Notice period for severance of remuneration payable to Manohar Bidaye is 3 (three) months. Compensation for severance is 3 (three) months remuneration. |
| Perquisites |
Pramoud Rao is entitled to the perquisites, as per the Agreement. |
Manohar Bidaye is entitled to the perquisites, as per the Agreement. |
| Sitting Fees |
No sitting fees are paid to Pramoud Rao for attending meetings of the Board of Directors or any of its Committee. |
No sitting fees are paid to Manohar Bidaye for attending meetings of the Board of Directors or any of its Committee |
| Absence or inadequacy of profits |
In the event of absence or inadequacy of profits in any financial year during the tenure of Managing Director, the aforesaid remuneration, perquisites / benefits to be paid to him as the minimum remuneration, subject to the ceiling limits prescribed under Schedule XIII and other applicable provisions of the Companies Act, 1956; and if the said remuneration is in excess of the ceiling, then necessary approval from the Central Government shall be obtained for makingup of the shortfalls, without any further reference to the shareholders. |
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