Number: Revision: Date of Origin: February 10, 2015 Page 1 of 3

1.01
Date Revised:

CAR SCHEME POLICY

Proposed By Recommended By Approved By Approved By

Manager- Admin Head of HR Director Vice Chairman

1. Objectives

The policy has been formulated to ensure faster & ease communication which will help to reduce employee turnover,
gain employee motivation, productivity and efficiency in order to fulfill organizational goal to a significant extent.

2. Eligibility

2.1 Senior level Personnel designated from Senior Manager and above.
2.2 This car policy is applicable only for company provided car.
2.3 The purchase price ceiling and Allowances according to designation are as follows:

SL Designation Price Ceiling Allowances

01 CEO/ED/COO/CFO/EQUIVALENT 2,200,000 35,000/-

02 GM/DGM 1,800,000 33,000/-

03 AGM/SM 1,50,0000 31,000/-

2.4 This will cover only cost of car, not for registration, insurance or any other govt. duty/tax
2.5 Allowances include driver’s salary, fuel cost, repair & maintenance and other relevant expenditure of the car. The
allowance is subject to review and change by the company on 30th June each year to comply with the market value.
2.6 Management may allow Sr.Manager and above positions to get interim transport/conveyance allowance
@Tk. 10,000 per month, if the company can not manage to provide car immediately. Entitled employee under
probation will be allowed this amount as conveyance allowance.

3. Type / Brand of Car

3.1 Preferable brands for car will be Toyota.

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4. Ownership Transfer

4.1 Company will provide Loan to the allottee the rate of 5% interests per annum.
4.2 Company will bear 30% of the Loan Amount required for the car in monthly installments. Rest 70% is to be borne
by the allottee in monthly installments.
4.3 The allottee will repay the loan to the company in maximum of 72 monthly installments with all necessary charges;
as specified in clause no. 2.5 the repayment of loan will be deducted from the allottee’s monthly salary in
installments basis. The Accounts department will maintain necessary accounts accordingly.
4.4 The car should be purchased and registered by the name of the company but the allottee will be fully liable for its
possession and maintenance.
4.5 The allottee will have to sign a Memorandum of Agreement with the company following the approval of the BOD to
avail the car loan. The allottee will also sign other necessary documents, which are related to security of car and loan.
All necessary documents of the car will be reserved under the company’s custody before transferring the ownership
of the car to the allottee.
4.6 The ownership will be transferred to the allottee only after the loan and other costs have been recovered fully. In this
case the allottee will bear all expenses of transferring the car.
4.7 Allottee will not be awarded with the ownership of car unless he serves the organization for 06 (six) years
consecutively.
4.8 Under any circumstances, ownership of the allotted car will not be transferred to the employee before completion of
03 years of the allotment period.
4.9 If the allottee leaves the organization less than serving 06 (six) years consecutively, will have to handover the car to
the authority within 3 (three) days of resignation. In such cases Administration department will ensure the condition
of the car.
4.10 For used car, the value of the car will be determined / fixed by the management considering its previous use and
depreciation cost. The lifetime of the car will also be fixed by the management.
4.11 In case of an interim period discontinuation of service of the allottee, contribution of the company will be
proportionate. This means if the service of the allottee terminates in between the period of 72 installments, company
will contribute 30% of the monthly installment of the total loan amount up to the period the allottee served in the
company. The installment of rest of the period will have to be paid in full (100.00%) by the allottee and then only the
ownership of his purchased car will be handed over to the allottee. For any reason, if the allottee fails to reimburse
the total loan amount, company can sell the car in market and adjust the money accordingly to repay the loan
amount. If any shortfall of repayment of the due loan amount occurs, the amount will be realized from the allottee
before final settlement.
4.12 The said car will be used for the allottee’s own purpose and for the purpose of the company. The allottee must
ensure that the car cannot be leased or hired out to anyone during allottee’s tenure in the company.
4.13 At the time of separation of allottee, when there is an outstanding loan, the allottee must settle the outstanding
amount by direct payment of the remaining amount or through his final settlement. If the allottee fails to settle the
outstanding loan amount, company will have the right to dispose off the car for realization of the outstanding loan
amount. In such case, excess sale proceeds, after adjustment of unpaid loan shall be refunded and shortfall if any
shall be adjusted with any other dues of the allottee concerned from the company or to be paid by the allottee.
4.14 Interested personnel will be allowed to apply for re-allotment, only after 02 years from the expiry date of previous
allotment period. If the allotted personnel is promoted to the higher position, he/she may apply for new allotment and
in such cases his/her existing allotted car will be surrendered. The present book value of the existing allotted car will
be adjusted with the value of the new allotment and such new allotment will be made for the period of 06 years.

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5. Charges and Fees related to car:

5.1 During the entire tenure of the scheme; vehicle registration, insurance, yearly annual charges, premium, BRTA, Tax
token and other Govt. charges and fees will be borne by the company at actual basis. This is only for office provided
cars and those cars are already registered to company name. If any accident occurs due to employees’ negligence,
insurance claim will not be recoverable; rather the employee will bear the loss.
5.2 In case of unfair wear, personal abuse, misuse of car, the car allotee will be financially penalized. This penalty may
be adjusted with his entitlements prior to his leaving the Company.
5.3 In case of repair, maintenance and major replacement of any parts of the car, the cost will be borne by the car allotee.

6. Policy Implementation

Corporate Administration & Accounts Departments will be responsible to implement the policy.

7. Disclaimer

The Management reserves the right to cancel, amend, alter, change, modify the policy at any time and will have also
right to withdraw the vehicle from any employee without showing any reason. Personal safety will be ensured by the
allotee himself. Allotee is also responsible for ensuring valid documents; company will not bear any dispute
regarding invalid documents.

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