Policy # HRI / 12 / 12

VEHICLE & FUEL Approval Date

POLICY Date & No. of Revision

Policy Statement & Scope

The Company provides transport facility to its employees under its Vehicle & Fuel Policy.

Scope: The policy entitles permanent employees in the position of Managers & above a
company maintained car and Deputy Manager and below, the motor cycle facilities.

Promotion: If an employee by virtue of promotion becomes eligible to a vehicle entitled to

the grade to which promoted, the company may immediately replace the car as per the new
entitlement or may decide to do so at the end of five year period of the current vehicle held.
Decision in this regard will be taken at the time.

Entitlement of Company maintained Vehicle & Fuel Limits at Head Office

Company maintained car / motorcycle and fuel entitlements from the date of joining are as
given here under:
Fuel Limits
Designation Car Make Maintenance Work Related
(In Litres)
Chief Operating Officer As decide by Management
Sr. General Manager Corolla Gli 300
General Manager Corolla Gli 250 At actual
Deputy General Manager Corolla Xli 200 At Actual other than
Sr. Manager Cultus 150 entitlement
Manager Cultus 125

At actual (Not exceeding

Deputy Managers & Below Motorcycle 50
Rs.1,000 in a month)
Entitlement of Company maintained Vehicle & Fuel Limits at Sites

Vehicle Up Fuel Limits

Designation Maintenance Work Related
to (In Litres)
General Manager Corolla Gli 250
At actual
Deputy General Manager Corolla Xli 200
At Actual other than
AGM / Sr. Manager Cultus 150
entitlement
Manager / Chief Engineer Mehran 125

Deputy Managers - 100 -

Notes:

(1) Fuel reimbursement will be at the actual against presentation of payment receipts of
the petrol pump.
(2) Fuel limit is applicable for official and personal vehicles.
(3) After every 5 years running on the vehicle, replacement of car will become due.
Decision on old car will be taken at the time. Also see conditions of purchase of car by
the employee given in the relevant Para below.
Responsibility / Procedure

HR Department at Head Office will raise Vehicle Entitlement & Approval Form (Annexure
A) duly completed to Finance and Admin Departments at Head Office for necessary action to
purchase and deliver the vehicle to the entitled employee.

Admin Department on receipt of Vehicle Entitlement & Approval Form liaise with Finance
department and the dealer identified by them for expedient procurement and delivery of the
vehicle. It is to be registered and insurance policy finalised before handing over of the
vehicle to the employee.

Employee on receipt the vehicles shall be responsible to look after the said asset in the best
interest of the company. The vehicle allotted to the employee is for his business and
personal use. Holding of a valid Pakistani driving license and adherence to traffic rules is a
pre requisite for the use of company vehicles. It is the responsibility of the employee to
ensure that the allocated vehicle is regularly and properly maintained in good order. Failure
to do so may lead to its withdrawal by the company. Misuse of the vehicle provided is
forbidden and will be strictly against the company discipline. All unwarranted and
undesirable use will be considered a misuse. Accident & theft of the vehicle must be
immediately brought to the attention of Admin department for appropriate handling of the
matter ensuring smooth processing of the insurance claim. Where required an FIR is to be
obtained from the police station of respective area where the incident occurred.

Fines and penalty of traffic violation: All such challans / penalties for traffic violations are
to be paid / settled by the employee.

Maintenance: While the charges for the maintenance of the vehicle is to provide by the
company it is the responsibility of the employee to initiate requirement in time for the same.
Following is the general principle for the purpose:
 Mechanical repairs or replacements of parts will be carried out at nominated dealerships
for which work orders will be issued by Admin.
 Batteries may be changed after 2 years or earlier, unless necessary as a result of
damage / failure. Tyres may be changed after 40,000 Kilo meters unless any abnormal
wear and tear has occurred. Admin will decide the condition in such cases after
inspection and arrange replacement if found to be necessary.
 No denting / painting work shall be allowed as part of normal maintenance unless
covered under insurance clauses. All other denting / painting will be at the cost of the
employee and under arrangement of the Admin. Continued use of the dented car is not
in the interest of the company. Admin may retrieve the car for the said work if they
consider it to be essential. Cooperation of the employee on such occasions is expected.
 One set of seat covers, mats and car cover will be provided by Admin on yearly basis.
Other accessories considered bonafide by Admin may be provided on request of the
employee once and replaced only on becoming defective.

Total Loss of Vehicle

In case the vehicle is stolen or declared a total loss by the insurance company due to
accident or fare wear and tear, a new vehicle may be provided through insurance or by the
company as applicable.

Car Buying Option

After 5 years, employee can purchase the vehicle from the company on 30% of Written
down Value (WDV) assessed under Diminishing Balance Value Methodology. Buy back
option is allowed only once in the tenure of employment. In case employee is not opting to
purchase the vehicle, it will be utilised in any of the transport pools at the sites or disposed
off through auction if in depleted condition not suitable for the transport pool. Proceedings
will be deposited to the accounts for credit to company. In case of auction first priority will be
that of any of the company employee. In case of purchase of vehicle, transfer of vehicle from
company name to the employee name will be employee responsibility and transfer letter and
all other related documents will be handed over to employee by Admin department.

Employee leaving the Company who has served minimum of three years of unblemished
service and is leaving the company not on disciplinary grounds will also have the option to
buy the vehicle as per written down value (WDV) on diminishing balance method. All others
employee leaving the company who did not served minimum 3 years of service will return
the vehicle to the Company in good condition. Cost of shortfalls in this regard will be
adjusted from the full and final settlement of the outgoing employee. Decision of the Admin
in the matter will be final.

Motorcycles

Policy covers all permanent employees of head office in the designation of Deputy Manager
and below for provision of motorcycle after confirmation on completion of probation. Fifty
percent cost of motorcycle will be borne by the company and the other fifty percent costs will
be recovered from the employee in easy instalments to be decided on case to case basis.
HR will decide the instalments basing their consideration on the net salary of the employee
and any other relevant issue of the financial condition of the employee. Total instalment is
not to exceed maximum of 36 months in any case. Motor cycle will be delivered to the
employee by the Admin after necessary registration and insurance. Maintenance and fuel
will be paid to the employee at the actual against submission of receipts of the workshop or
petrol pumps as applicable and subject to the maximum of entitled limit. All challans due to
traffic violation will be paid by the employee himself. After completion of 36 months,
motorcycle may be transferred to employee name. Transfer of motorcycle will be the
responsibility of employee.

Amendments and Termination

The Company reserves the right to amend or terminate this Vehicle Policy at any time
without any notice or compensation and without assigning any reason.