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AYOKI FABRICON PVT. LTD

HRPOLICIES

TRAVEL ENTITLEMENT 1310/AFPLIHR Rev Date: 01-04-2011

PURPOSE:

Employees who travel on work for various business purposes including visits to project sites, have to incur certain expenses for their traveling, boarding and lodging etc.

The aim of the policy is to lay down the travel entitlements of employees of Ayoki with a view to help them claim these expenses as also to ensure that employee should perform the journey in such a manner as would entail minimum expenditure to the Company.

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Travel entitlement policy does not apply to employee travelling for personal purposes including visits to home town/city either as a destination or as a stop journey either en route or on return from an official duty destination.

DEFINITIONS:

This policy covers two types of travel i.e. Trip and Tour.

(; Trip is defined as an authorized journey in which return is made within 24 hours and ; \0 night halt is involved.

Tour is defined as an authorized journey undertaken which is for more than 24 hours but does not exceed 30 days to a site by personnel from HO and does not exceed 15 dnys to H.O. by personnel from site.

If duration of tour exceeds number of days as laid down here, special sanction from any Director shall be obtained on the recommendation of the HOD for the same while claiming expenses.

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Employees have been categorized as A, B, C, D and E based on their designations as per details

appended at Annexure "A" to this policy.

ENTITLEMENTS:

Trip

The boarding expenses shall be reimbursed on actual on submission of the requisite bills. If no bills are submitted, 50% of the boarding expenses as per tour entitlements (given below) shall be allowed provided the duration of trip is more than 12 hrs.

No Travelling Allowance shall be paid for the trip.

Tour

Mode of Travel:

Mode of travel shall be by the shortest possible route and no circuitous/unjustifiable route shall be used for the travel.

Category Mode of Travel Permissible A Air lEconomy_ classJ B 2 AC I Air (Economy class preferably_ by_Low Fare Airline C 2 AC I 3 AC ICC 0 3 AC I CC E SL I 2nd Class I

Tickets shall be booked by the Company. If, however, the individual books the tickets, he/she shall submit actual bills/tickets for verification of the claim.

Boarding and Lodging

If boarding and lodging facility is provided at the tour site expenses for the same shall not be permitted and/or reimbursed.

If Ayoki has a tie-up with hotel in any city, only such hotels/accommodation shall be utilized for lodging at the pre-determined rates.

If lodging facility is not provided at the visit site, lodging expenses (excluding taxes) shall be paid on actual bills submitted subject to a maximum limit per day as per the following chart:

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Max. Amount outside India in Cat~gory Max. amount n Rs within India USD

Metro City Non-Metro A 4000 2500 150

B 3500 2000 100

C 2500 1500 60 D 2000 1000 E 750 500

(Metro Cities are Chennai, Mumbai, Delhi, Kolkata, Bangalore, Ahmadabad and Hyderabad. Non-Metro Cities are cities other than Metro cities given here.)

The boarding expenses shall be paid on actual biBs submitted subject to a maximum limit per day as per following chart. Boarding covers all nonnal expenses while on travel and at stay such' as for Breakfast, Lunch, Dinner, Snacks, local conveyance etc. However, if a taxi is hired for the whole day as per exigencies of work or as part of arrangements made at the City, boarding expenses limits given under shall be over and above expenses for such taxis.

Category I

Max. Amount in Rs within India Max. Amount in

USD outside India

A 600 40

B 500 30

C/D 350 20

E 200

TRAVELLING ALLOWANCE (TA):

Travelling allowance for one full day, as per the following table shall be paid for which no bills are required to be submitted. T A shall be in addition to expenses for mode of travel, boarding and lodging and is payable to offset any hardship of travelling to the employee and for miscellaneous expenses that he/she may incur during tour.

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Category Travelling Allowance iTA) TA in India in Rs TA outside India in USO

A 300 30

B 200 20

C/O 150 10

E 60

T A shaH be payable if the tour is of more than 12 hours duration only. If the tour is for less than 6 hours, no TA shall be payable. If the tour is for more than 6 hours but less than 12 hours, 50% of the T A shall be payable.

PROCEDURE:

Tour Advance (Travel Requisition and Approval Form)

Enployee shall fill up the Travel requisition and approval form. The amount of tour advance would be 50% of the estimated expenses as per days of tour if tickets are booked by Ayoki and 75% of the estimated expenses as per-days of tour if tickets are not booked by Ayoki

Advance shall be paid to the employee prior to the conunencement of the tour on approval of employee's department head. Prior notice shall be given to the Accounts Department for making arrangements of the funds.

Employees travelling from HO to Sites shall take advance from HO only and shall not take any further advance from Site under normal circumstances. Similarly, employees travelling from Site to HO or another Site shall take advance from the Site only and shall not take further advance from HO or another Site under normal circumstances. In case of an emergency a second advance is required to be taken from another source, a receipt for the same or a voucher shall be signed by the employee taking the second advance.

Employee at HO shall write their tour details in the OD Register maintained at the reception.

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Expense Guidelines

Expenses for conveyance, fax, telephone calls/emails, laundry etc of official nature shall be reimbursed, provided all available bills are attached in support.

Expenses of a personal nature such as for smoking, magazines, liquor, non official telephone calls, movie tickets etc shall not be reimbursed.

Settlement of Expenses on completion of tour

The staff must submit the travel expense claim statements within ten days from return of tour/trip accompanied by the tour/trip report in brief. Unusedlundaimed travel advance amount shall be returned along with the expense claim statement. Accounts department shall settle the claims within ten days of receipt of the same. If the bills are not submitted within ten days, the entire amount of advance drawn will be deducted from employee's salary. Further travel advance shall not be given if old advance amount has not been settled.

Unsettled travel advance (if any availed at the time of travel) will be recovered

from the employee's salary for the next month.

Local Conveyance Allowance for official work at HQ.

For Local conveyance within the city/town of normal posting, company o\\

No additional food or other expenses shall be reimbursed.

Deviations in tour expenses claims exceeding the laid down limits:

If the travel expenses bills exceed the laid down limits, approval of Director based on the recommendation of HOD shall be necessary for Accounts to settle the claim.

Concl usion:

This policy is laid down to enable the company to follow the procedure in letter and spirit. These procedures will ensure that the travel claims in respect of all employees are admitted/passed/settled without any delay in a transparent manner. The management expects full cooperation from all employees so that the claims are settled with out delay and will benefit all employees.

The essence of the policy is to ensure a comfortable travel for the employees at the most economical cost to the Company.

ANNEXURE -l

Category

M 1 Grade A

M 2 Graae M 3 Grade E Grade o Grade

B C D E

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AYOKI HIERARCHY

1 BOARD OF DIRECTORS

2 MANAGEMENT GRADES Ml PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT ASSOCIATE VICE PRESIDENT

M2 SENIOR GENERAL MANAGER GENERAL MANAGER DEPUTY GENERAL MANAGER ASSISTANT GENERAL MANAGER

M3 SENIOR MANAGER MANAGER DEPUTY MANAGER ASSISTANT MANAGER

3 EXECUTIVE GRADES TECHNICAL EXPERIENCED NON TECHNICAL

SENIOR ENGINEER ENGINEER DEPUTY ENGINEER ASSISTANT ENGINEER

SENIOR SUPERVISOR SUPERVISOR FOREMAN

SENIOR EXECUTIVE EXECUTIVE ASSISTANT EXECUTIVE

4 OTHER GRADES TECHNICIAN, DRIVER, OFFICE BOY, CARE TAKER, COOK