(AFCONS) ga AFCONS INFRASTRUCTURE LIMITED ShapooriPalong 21" April 2022 Cireul Subject: Safety- strategic goal, renewed processes, rewards, and di iplinary actions Dear all, ‘As you all are aware that delivering excellence is one of the defining values of Afcons. We aspire not only to deliver projects on or ahead of schedule but also to ensure excellence in quality, technology, ‘employee engagement and other facets of construction. Over the last few years, we have observed that safety is one of the areas where we are falling short in our aim of delivering excellence. The importance of safety cannot be over emphasised, and it has become even more important for a ‘company like us having high overseas exposure. To give due thrust to safety at Afcons, itis decided to have a strategic goal of becoming one of the globally top 10 construction company in safety practices. Keeping all this in mind, we are revamping our entire approach towards safety. Multiple rounds of discussion happened with BU heads, HO HSE team and other stakeholders in this regard. To achieve this strategic goal, ensure compliance of newly initiated processes and bring seriousness towards safety practices at Afcons, itis also decided to form ‘Afcons safety council’ at HO. This safety council will comprise of Mr. Giridhar Rajagopalan- Deputy Managing Director, Mr. Manivannan-Director CPE, Mr. Sudhir More- HOD HSE and respective BU heads. This council will deliberate and take final decisions regarding any additional penal actions, rewards, and any other safety related policy matters. ‘This council will report to the Managing Director and the undersigned will be permanent invitee. It is also decided to have ‘Site safety committee’ at each site consisting of respective Project manager, Construction manager, HSE in-charge, CPE in-charge and/or section head and any other site executive as decided by BU head. The following are the changes finalised with regards to safety processes, accountability, rewards, and disciplinary actions. Safety Processes ‘All activities at project site will be conducted with approved method statement along with appropriate risk assessment. Method statement will be prepared by the respective activity engineer, with risk assessment review support provided by project HSE engineer ‘+ Work permits will be given on activity basis before commencement of the activity. This activity- based work permit system will be rigorously adopted in the company for all activities. This practice is already followed at many foreign sites and select domestic sites of Afcons + Every week, on a specified day, all Site safety committee members will conduct safety walk- through followed by safety meeting at their respective sites Each month, site safety committee meeting will be conducted, and minutes of the meeting will be shared with HO-HSE “AfconSafe App" will be implemented at all sites by HO-HSE Page 3/3 eg Ofc: Afcons House 16, Shah Indus Esae, Vora Desel Road, Azad Nagar P.O, Post Box No 1978, Anche (W, Mubel40 58 Tok: +94 22.6710 1000/2873 0042 Fx: 401-22 2679 004712673 098 irs oon 0 | {IN No U4s200NN7EPLCOI9E95AFCONS INFRASTRUCTURE LIMITED Shoo Patlon Strengthening HSE + All safety executives will be evaluated on a scale of 1 — LS by Afcons safety council. Relevant training will be identified to cover the skillset gaps + Option will be given to all executives who are willing to permanently move to safety role. ‘Adequate safety training/certification will be provided to these executives + Mandatory safety related training will be provided to all engineers before promoting them to manager cadre + HSE team will identify best institutes that provide safety training and UG/PG safety courses ‘+ HSE team will check feasibility of British safety council rating/audit for project sites Accountability + Site safety committee shall be the owner of safety at their respective sites with PM leading the committee + Site safety in-charge will have functional reporting to HSE head at HO and administrative reporting toPM ‘+ Whenever a senior management executive will visit site, mandatory agenda of the visit will be to ‘conduct site HSE inspection, along with PM and project team, followed by a meeting focusing on safety review Rewards + On achieving LT! free manhours following reward provisions are made for the project: UT free manhoure Bonus Recipients 3 million Celebration at site ‘Smilin 1 day salary (basic+ ad-h00) | 1 te employees of the T milion 2 days salary (basic + ad-hoc) | "Ste employes s respective project site 10 milion 2 day salary (basi ad-hoc ee 15 million 4 days salary (basic + ad-hoc) * 20 million and above 5 days salary (basie+ ad-hoc) ‘+ Additionally, for each LTI free year of a project (up to a maximum of three years), an additional 15- day salary (basic + ad-hoc) will be paid as a bonus to respective Site safety committee members. ‘Such declaration shall be made at the beginning of the project, ‘+ Incase of any fatality or amputation no reward shall be given to the project plinary Action + Fatality: © First incident: deduction of 15 days salary (basic + ad-hoc), for the immediate month after the incident of all Site safety committee members, and 50% deduction in their annual increment in the next appraisal cycle Page 2/3 —_—_—_——$——S— er “Tol: +91.226718 1009/2873 0042 Fa: 40-22-2873 0947/2873 0028 avs wenn d ‘Regt fce:Afcons House, 18, Shah indus Estate, Veera Dot Road, Azad Naar P.O, Post Box No 11878, Ann (W), Mumba 400 05, ‘GN Ne Uasz00Mr876PLCOI009SAFCONS INFRASTRUCTURE LIMITED | Shapoog Palo (© Second incident: same disciplinary action as taken for first incident will follow ie, deduction of 15 days salary (basic + ad-hoc), for the immediate month after the ident of all Site safety committee members, and 50% deduction in their annual increment in the next appraisal cycle (© Subsequent incidents: quantum of disciplinary action on the Site safety committee to be decided by Afcons safety council + Amputation: © First incident: deduction of 7 days salary (basic + ad-hoc}, for the immediate month after the incident of all Site safety committee members, and 50% deduction in their annual increment in the next appraisal cycle (© Second incident: same disciplinary action as taken for first incident will follow ie, deduction of 7 days salary (basic + ad-hoc), for the immediate month after the incident of all Site safety committee members, and 50% deduction in their annual increment in the next appraisal cycle (© Subsequent incidents: quantum of disciplinary action on the Site safety committee to be decided by Afcons safety council + This deducted money will be donated to affected person or their dependents + Forall incidents, detailed enquiry will be conducted by HO HSE team, and adequate action will be suggested by Afcons safety council for those responsible for the incident ‘+ For near miss and loss of time incidents, warning letters will be issued to Site safety committee members and to those found responsible. These letters will be attached in the personal file of respective executives + Reasons of any accident will be deliberated by the Afcons safety council and final decision for any additional penal action will be proposed by the council + During annual appraisal review, performance on safety parameters by respective site safety ‘members will be considered as one of the evaluation parameters ‘+ As many times accident involves subcontractor's manpower, supply chain management team will explore the option of having safety related penalty/ bonus clause in subcontractor’s contract HO HSE team will ensure compliance of changes and processes mentioned in the circular and share regular MIS with Afcons safety couns This circular comes into effect immediately. Regards, Page 3/3 Regd Oca: Acons House, 18, Shah Indust Estate, Veera Det Road, Azad Nagar 0, Pot Box No 11878, Anchen (, Mu400 053 Tol: 491-226719 1000 273 0042 Fax 1-22-2678 0047 (2673 0628s cos 9 (WN No: UaszoonntsTePLootEAOS