1 Objective:

The objective of this policy is to provide members with company car benefit to facilitate their travel to
work and to meet business requirements.

2 Scope:
All members in TitleGroup-3 and above and are on the rolls of the company. The eligible members
should have a car lease component as part of their compensation.

3 Eligibility
The entitlement is subject to the limits as mentioned below. This entitlement is for on road prices.

Title Group Monthly Car Rental

Title Group- 3 Upto Rs. 30,000/-
Title Group- 4 UptoRs. 50,000/-
Title Group- 5 UptoRs. 80,000/-

4 General guidelines:
A member opting for the car benefit would have following options:
4.1 Members should select a car that has a monthly rental value equal to or less than their rental
eligibility. Member has to pay no further amount either to the company or to the leasing company.
4.2 Members can choose any car of their choice (restricted to the value in the eligibility table above)
4.3 The scheme will not cover any second-hand cars, special purpose vehicles or commercial vehicles.
Members will not be allowed to transfer the company car lease to another member.
4.4 The company will provide a car from a leasing company and the lease will run for Thirty-Six months/
Forty-Eight months.
At the end of the lease tenure employee will be having an option to buy back the car at max 35 % of
the price of the car + applicable taxes ( Residual value’s will be defined at the lease inception within
the bracket of 23% to 35% on the bases of car make model & tenure chosen)
4.5 The car lease cost mentioned in the compensation package is towards the lease rentals (including
service tax thereon), stamp-duty, road-tax and insurance. The car will be allotted to a member
within 30 days from the date of opting, subject to availability. In the interim period the member
shall be paid a taxable allowance as stated in the compensation package until the car is made
available.
4.6 The limit for monthly expenditure on car maintenance and running and provision of driver as
mentioned above shall be as indicated in the compensation package of the member. The amount
that is not claimed as reimbursements under this policy shall be paid to the member as a taxable
allowance at the end of the financial year i.e. March 31st.
4.7 The car lease value per member shall not exceed the eligibility as mentioned in the table above.
4.8 Eligible members who do not exercise the car option under the policy will be paid the car allowance
as mentioned in their compensation package as a taxable allowance.
4.9 Get a Performa Invoice from Dealership & Visit Mahindra & Mahindra Website
Member opting for a car under this policy will have to submit the option in the designated form to
the HR- Department. The form will be forwarded to the finance department after due authorization
by HR-Department.
4.10 On receiving the approved car option form, the finance department will organize for the delivery
of the car to the concerned member.

5 Lease Termination:
On separation of the member will have to foreclose the lease, below are options available to the
member. The member also has to get a no due clearance from the lease company in order to get
their full and final settlement and the relieving letter.
Following will be the treatment based on resignation date:
 If the resignation is between the 1 st and 15th of the month, the lease will be terminated at the
end of that particular month. The foreclosure value will be generated as per that month end.
 If the resignation is between the 15 thand end of the month, the foreclosure value will be
generated as of the subsequent month and the lease rent for the subsequent month will have to
be paid.
5.1 Member has the option to foreclose the lease and purchase the car by paying up a predetermined
Lease Terminal Value to the Lease Company (Lease Terminal Value- is the value determined using a
standard formula by Lease Company as an amount that needs to be paid up the individual in case
of fore closure of the lease)
5.2 In case the member is joining another employer, member also has the option to transfer the lease
agreement to new employer (However this is subject to the acceptance of the other leasing
company and to their arrangements, if any, with the new employer).
5.3 Member can also allow leasing company, to sell the car in the market and pay up the difference
between the lease terminal value as applicable and the market rate (in case the market rate is
lower than the lease terminal value). Here the market valuation of the leasing company will be
treated as final.

6 Transfer or promotion during lease period:

Transfer:
When a member is transferred from one location to another during the continuation of lease, the
leasing company will assist in completing the formalities related to transfer of the car. The costs related
to the transfer including transportation, registration etc. will be as per the company’s relocation policy.
Promotion:
If a member is promoted from one grade to another during the lease period, they can-

6.1 Buy the car from leasing company at the Lease Terminal Value and upgrade to a new car as per
their new rental eligibility.

6.2 Surrender the old car to the leasing company and choose to upgrade to a new car as per their new
rental eligibility mentioned in the new grade. In this case, book value loss (difference between the
Lease Terminal Value as applicable and the market rate) will have to be borne by the member

6.3 Choose to retain the same car.

Changes in Rental Eligibility:

 The rental eligibility for different grades has been fixed keeping in mind a certain compensation
related financial outflow and not any particular car models. Further, any price changes in the car
market would not automatically translate into a revision of the rental eligibility values.
 However, the company reserves the right to change the lease rent eligibility of any member from
time to time.

7 General Guidelines:
7.1 The member will be liable to pay income tax on the value of the perquisite under the Income Tax
Act, 1961 as may be applicable from time to time. Any change in income tax liability on account
of changes in rules and regulations prescribed under the Income Act, 1961 shall be borne by the
member
7.2 The benefit of provision of car as contained in this policy shall be a revolving one and the
member shall be eligible for the benefit of the scheme and when the lease period in respect of
the lease availed by expires
7.3 Members will be required to sign an agreement with the company for accepting and availing the
new car scheme
7.4 The interpretation of the policy rests exclusively with the company. The decision of the company
is final and binding
7.5 Any exceptions to the above would be at the sole discretion of the Business Unit Leader-India

8 Restrictive clauses:
 Based on the business requirements, the management reserves the right to modify, amend or
withdraw this policy in whole or part without assigning any reason whatsoever and without giving
any notice.
 The interpretation of the policy restsexclusively with the company. The decision of the company is
final and binding
 Any exceptions to the above would be at the sole discretion of the India BU Head