FOREIGN TRAVEL POLICY

1. Objective

To provide guidelines for smooth travel, accommodation and other incidental

expenses incurred during overseas business travel of employees.

To provide limits for various expenses based on suitable eligibility and
entitlement criteria

2. Scope

The policy will cover all employees of AMW going abroad for:
• Business purpose
• Attending training / conferences / Seminars with associate companies
collaborators/
• business purposes.
• Customer visits
• On due diligence

3. Applicability
This policy shall be applicable to all management staff employees (including
advisors/retainers and trainees) of Asia MotorWorks Limited required to undertake
business travel outside India.

4. Classification of Countries

For the purpose of foreign business travel, the following classification of countries will be
applicable:

Class Countries
A North America, Europe, Australia, New Zealand, Japan, Singapore, Hong Kong,
QAE, South Korea

B Other APAC, Other Middle East, SAARC, Africa.

5. Mode of Travel
The mode of travel as applicable to different grades of employees is listed below:

Grades Class of Travel

M1 – M2 Business Class

M3 & Below Economy Class

Policy No. HRC/0007 Date: 24/10/2007

6. Entitlements

6.1 Daily Allowance entitlements as applicable to different grades of employees in

a different country is listed below:

For Tour upto 15 days in one location:

Grades Class Countries Eligibility for DA (intra city Total eligibility
accomodation travel , food tips, (per day in
upto (per day in laundry etc.) USD)
USD)
M1 – M2 A Upto 275 Upto 100 Upto 375
B Upto 225 Upto 75 Upto 300
M3 – M4 A Upto 250 Upto 75 Upto 325
B Upto 200 Upto 50 Upto 250
M5 – M6 A Upto 200 Upto 75 Upto 275
B Upto 175 Upto 50 Upto 225
M7 & Below A Upto 175 Upto 75 Upto 250
B Upto 150 Upto 50 Upto 200

For China eligibility will be as below:

Grades Eligibility for DA (intra city Total eligibility

accomodation travel, food tips, (per day in
upto (per day in laundry etc.) USD)
USD)
M1 – M2 Upto 175 Upto 75 Upto 250
M3 & Below Upto 150 Upto 50 Upto 200

For Tour More than 15 days:

Level Class Countries Eligibility for DA (intra city Total eligibility

accomodation travel, food tips, (per day in
upto (per day in laundry etc.) USD)
USD)
M1 – M2 A Upto 225 Upto 100 Upto 325
B Upto 200 Upto 75 Upto 275
M3 – M4 A Upto 200 Upto 75 Upto 275
B Upto 175 Upto 50 Upto 225
M5 – M6 A Upto 175 Upto 75 Upto 250
B Upto 150 Upto 50 Upto 200
M7 & Below A Upto 150 Upto 75 Upto 225
B Upto 130 Upto 50 Upto 180

Policy No. HRC/0007 Date: 24/10/2007

 For China eligibility will be as below:

Grades Eligibility for DA (intra city Total eligibility

accomodation travel , food tips, (per day in
upto (per day in laundry etc.) USD)
USD)
M1 – M2 Upto 150 Upto 75 Upto 225
M3 & Below Upto 130 Upto 50 Upto 180

6.2. Employees are requested to make use of company owned guest houses
Wherever such facility may be available. In such case the employee will be
eligible to claim only the DA.

6.3. Employees who are on Overseas training wherein the employee is provided with
accomodation by the organizers the employee will be eligible to claim the DA
only.

7. Procedure / Internal Approvals

7.1. Employees going on tour abroad have to make a requisition for foreign exchange
advance and ticketing on the Overseas Travel Request form (Annexure I). The
requisition has to be approved by the Business Head / Department Head and
then forwarded to HR. HR in turn will authorize the same and send for the
approval of the Promoter Directors. The approved copy of the same is to be
forwarded to the concerned Finance / Administration department for arrangement
of foreign exchange , visa and ticket.

7.2. All employees shall route all travel and stay requests through travel desk. All
Travel requisitions / e-requisitions have to be made in the prescribed format
(Annexure II). The requisition has to be approved by the Business Head /
Department Head and then forwarded to HR. HR in turn will authorize the same
and send for the approval of the Promoter Directors. The approved copy has to be
forwarded to travel Desk. The travel desk will then arrange for the tickets / visa
and ensure that suitable insurance coverage against certain risk including medical
emergencies is provided .The Company will be responsible for arranging the
insurance coverage.

7.3. Where local metros and other suitable conveyance is available, employees should
use such services as part of their routine local conveyance. Local conveyance is
included as part of the Daily Allowance.

7.4. All employees traveling on international trips exceeding 7 days should necessarily
take an International Sim card The same will be Issued by the Administration
Department, after due Instruction from HR dept. Necessary approval from the
Business Head / Departmental Head. The requisition should reach the
administration department atleast 7 working days in advance.

7.5. The Overseas Travel Request should provide the following documents as
applicable in Duplicate towards training, conferences, etc.

A communication from the Institution / Business House in the Host Country \

Indicating:

Policy No. HRC/0007 Date: 24/10/2007

 • Confirmed admission for residential training programme, workshop, seminars as
the case may be
• Tution / training fee. The the training is free, this should be mentioned
• Living expenses required, with breakup, viz . Room, boarding, local conveyance
and other expenses per day and number of days.

For Business travel, if by invitation, a letter / fax/e-mail from the Business House in the host
country stating the purpose of visit, duration etc. The letter will have to be co-ordinated
through the respective Administration department. It should also mention that all expenses
for stay, of our personnel abroad should be borne by us (AMW)

Passport, health certificate (if required) and visa.

8. Expenses account

8.1. Employees have to settle all accounts within 72 hours (3 working days) from the
date of arrival

8.2. Employees should submit bills for all expenses incurred by them. For the DA
Settlement, as a general guideline, minimum of 60% of the DA should be accounted
for along with the supporting attached including the flight tickets. All hotel bills
must be presented for claim along with other expense reports.

All unspent foreign exchange must be surrendered to the company on return and
must be accounted with expense reports.

8.3. The expenses account should clearly state the number of days for which the Daily
Allowance is claimed and the rate at which it is claimed. The days of travel will be
computed from the scheduled time of departure from airport to actual time of arrival
at the airport at home station on return. Every Period of 24 hours will be counted as
one full day. Any spill over exceeding 12 hours will also be counted as a full day.

8.4. A detailed report of overseas tour in the prescribed format (Annexure III) giving date
of commencement of travel, date of return, foreign exchange drawn and spent and
a detailed note giving the purpose and outcome of the tour should be prepared. It
should be submitted to the Business Head or Departmental Head / HR Head for
approval and a copy is to be submitted to the Accounts Department to comply with
RBI requirements, if any, within a week of returning from abroad. In addition, the
employee also has to submit minutes of meetings (with Business associates, clients
etc) while on tour.

8.5. Till the submission of Travel Report and refund of balance of foreign exchange, if
any, the Accounts Department will hold the total amount paid to the individual and
the cost of the ticket as an ‘advance’ against the employees name.

Policy No. HRC/0007 Date: 24/10/2007

9. Kit Allowance

Kit allowance is paid to enable the employees to purchase essential travel items. It shall
be paid to all employees traveling abroad for the first time. An amount upto Rs.10000/-
shall be reimbursed (against supportings / Bills) for purchase of essential items required
for overseas travel. Then onwards the kit allowance shall be paid once in three years.

10. General

10.1. Management Trainees, Graduate Engineer Trainees and Diploma Engineer

Trainees will be eligible for travel as applicable to Level M8, M9 and M10
respectively.

10.2. For consultants and outsourced employees, the applicable category will be
decided at the time of finalization of conditions of contract / terms of outsourcing
agreement and documented therein. HR head will communicate the same to
accounts.

10.3. As a rule, the Company shall not pay excess baggage charges, unless specifically
approved by the Business Head / HR Head.

10.4. Miscellaneous Expenses – Company will bear such miscellaneous expenses

Which are related to obtaining travel documents / visas / airport
taxes. etc., which are essential requirements for foreign travel.

10.5. Leave taken abroad – Company may at its sole discretion permit any employee on
an official visit abroad to take earned leave, at the end of business tour. However,
the Company will not bear living expenses or any other allowances for this leave
period.

12. EXPECTATIONS / AMENDMENTS

The above terms are subject to modifications / amendments / alterations by the

Management at any time depending on Business requirements. In case of any doubt, the
interpretation of the above terms by the Head of Human Resources shall be final.

13. EFFECTIVE DATE OF THE POLICY

This policy will be effective from October 24, 2007

Policy No. HRC/0007 Date: 24/10/2007

 Foreign Travel Policy
Annexure I
OVERSEAS TRAVEL REQUEST

A) Employee Details
Name:____________________________________________ Employee No.: ___________

Designation:_______________________________________ Level: _________________

Company/Division:__________________________________

B) Travel Details

1.
i. Purpose of travel (Business/Short Term Posting/Training) (If Training whether secrecy
surety/service agreement entered into):

ii. Country visiting:___________________________________________________

iii. Expected duration of stay:____________ nights

iv. Lodging/Boarding provided by the Overseas Company: Y / N

2. Class of Travel as per policy:_____________________________________

3. Exchange rate permissible as per rules:_____________________________

Date:___________ Business Head: _________________________________________________________

Name Signature

Approved/Not Approved

Remarks:____________________________________________________________________________________

Date:______________ Business Head:_______________________________________________

HR: TA/DA and other allowance/Benefits applicable (if any) Sign Date

Approval of Promoter Director Approved/Not Approved Sign Date

To: Accounts
Please provide Rs. ___________ as advance.

Please provide a cheque of Rs. _________________in favour of M/s____________________________________

for releasing of foreign currency.
Date: _____________ Head – Finance/Accounts:_______________________________

Policy No. HRC/0007 Date: 24/10/2007

 Foreign Travel Policy
Annexure II
OVERSEAS TRAVEL SERVICE REQUISITION

Date :
For
Req. No.:
Division to be
Date:
Billed: ______________________________

Name of Emp Level Sap/ Res. Tel. Frequent flyer Vg/Nvg

traveller Ship no
No. code

1.

2.
3.
4.

Travel/Ticketing details (Please complete for all travel/ ticketing Requirements)

From To Travel Flight Dep. Fare

(Place) (Place) Date Time

Additional details for International Tickets For Visa requirement

No Passport Date of Place of Passport Name of Countries

No. issue issue Exp.Date

1.
2.
3.
4.

Purpose of Travel (Schedule of Meeting)

Sign. of Requisionist: ___________________ Authorized By (CEO):

________________________
Name : ________________________________ Name

Policy No. HRC/0007 Date: 24/10/2007

 Foreign Travel Policy
Annexure II
REPORT OF OVERSEAS TOUR
A) Associate Details

Name:_____________________________________________________ Associate No.: ____________

Designation:________________________________________________ Level: ___________________

Company/Division:___________________________________________

B) Travel Report

Brief Report on the Visit:

____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

C) Accounts (Info):

Date & time of Departure: _______________________________

Countries visited:______________________________________

Date & time of Arrival:__________________________________

Total No. of days stayed:________________________________

Foreign exchange entitled per day: ________________________

Foreign exchange received:______________________________

Balance, if any, returned:_________________________________

_______________________ _____________________
Associate Business Head

Balance returned to Accounts vide receipt No.

Date: Signature:

Note: This report shall be submitted within 7 days of arrival to the reporting authority, with a copy to concerned
Finance department, along with the balance Foreign Exchange, if any, and the Passport for endorsement
Thereon, without (b) above.

(Kindly submit a detailed report in the above format)

Policy No. HRC/0007 Date: 24/10/2007