Nomination & Remuneration ​Committee Policy

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NOMINATION AND REMUNERATION COMMITTEE POLICY

INTRODUCTION:

The Nomination and Remuneration Policy applies to Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the Company.

In pursuance of the Company’s policy to consider human resources as its invaluable assets, to pay equitable remuneration to all Directors, Key Managerial Personnel and Employees of the company, to harmonize the aspirations of human resources consistent with the goals of the company and in terms of the provisions of the Companies Act, 2013, this policy on nomination and remuneration of Directors, Key Managerial Personnel (KMP) and Senior Management has been formulated by the Nomination and Remuneration Committee (“NRC”) and approved by the Board of Directors of the Company.

CONSTITUTION OF COMMITTEE:

The Board of Directors of the Company (the Board) shall constitute the committee to be known as the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half are independent directors. The Chairman of the Committee is an Independent Director. However, the chairperson of the company (whether executive or nonexecutive) may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee.

OBJECTIVE:

The Nomination and Remuneration Committee and this Policy shall be in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto. The objective of this policy is to lay down a framework in relation to remuneration of Directors, KMP, Senior Management Personnel and other Employees. The Key Objectives of the Committee would be:

  • To guide the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management.
  • Formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy relating to the remuneration of Directors, key managerial personnel and other employees.
  • Formulation of criteria for evaluation of Independent Director and the Board.
  • To evaluate the performance of the members of the Board and provide necessary report to the Board for further evaluation of the Board.
  • To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior Management.
  • To provide to Key Managerial Personnel and Senior Management reward linked directly to their effort, performance, dedication and achievement relating to the Company’s operations.
  • To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage.
  • To assist the Board in fulfilling responsibilities.
  • To Implement and monitor policies and processes regarding principles of corporate governance.

APPLICABILITY:

  • Directors (Executive and Non Executive)
  • Key Managerial Personnel includes:
    • a Whole-time Director;
    • Chief Financial Officer;
    • Company Secretary; and
    • such other officer as may be prescribed.
  • Senior Management Personnel- means Senior Management means the personnel of the company who are members of its core management team excluding Board of Directors comprising all members of management one level below the executive directors, including the functional heads.
  • Other Employees- means and includes means all employees other than the Directors, KMPs and the Senior Management Personnel.

Appointment Criteria and Qualifications:

  • The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or at Senior Management level and recommend to the Board his / her appointment.
  • A person should possess adequate qualification, expertise and experience for the position he / she is considered for appointment. The Committee has discretion to decide whether qualification, expertise and experience possessed by a person is sufficient / satisfactory for the concerned position.
  • The Company shall not appoint or continue the employment of any person as Wholetime Director who has attained the age of seventy years. Provided that the term of the person holding this position may be extended beyond the age of seventy years with the approval of shareholders by passing a special resolution based on the explanatory statement annexed to the notice for such motion indicating the justification for extension of appointment beyond seventy years.

2. Term / Tenure:

  • Managing Director/Whole-time Director: The Company shall appoint or re-appoint any person as its Executive Chairman, Managing Director or Executive Director until he himself shows his unwillingness to hold the position.
  • Independent Director:

    An Independent Director shall hold office for a term up to five consecutive years on the Board of the Company and will be eligible for re-appointment on passing of a special resolution by the Company and disclosure of such appointment in the Board's report.

    No Independent Director shall hold office for more than two consecutive terms of upto maximum of 5 years each, but such Independent Director shall be eligible for appointment after expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly.

3. Evaluation:

The Committee shall carry out evaluation of performance of every Director, KMP and Senior Management Personnel at regular interval (yearly).

4. Removal:

Due to reasons for any disqualifications mentioned in the Act or under any other applicable Act, rules and regulations there under, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director, KMP or Senior Management Personnel subject to the provisions and compliance of the said Act, rules and regulations.

5. Retirement:

The Directors, KMP and Senior Management Personnel shall retire as per the applicable provisions of the Act and the prevailing policy of the Company. The Board will have the discretion in retain the Director, KMP, Senior Management Personnel in the same position/remuneration or otherwise even after attaining the retirement age, for the benefit of the Company.

Nomination Standards:

The duties of the Committee in relation to nomination matters include:

  • Ensuring that there is an appropriate induction & training programme in place for new Directors and members of Senior Management and reviewing its effectiveness;
  • Ensuring that on appointment to the Board, Non-Executive Directors receive a formal letter of appointment in accordance with the Guidelines provided under the Companies Act, 2013;
  • Determining the appropriate size, diversity and composition of the Board;
  • Setting a formal and transparent procedure for selecting new Directors for appointment to the Board;
  • Developing a succession plan for the Board and Senior Management and regularly reviewing the plan;
  • Evaluating the performance of the Board members and Senior Management in the context of the Company’s performance from business and compliance perspective;
  • Making recommendations to the Board concerning any matters relating to the continuation in office of any Director at any time including the suspension or termination of service of an Executive Director as an employee of the Company subject to the provision of the law and their service contract.
  • Delegating any of its powers to one or more of its members or the Secretary of the Committee;
  • Recommend any necessary changes to the Board.
  • Considering any other matters as may be requested by the Board.

Fixation of Remuneration Criteria:

The duties of the Committee in relation to remuneration matters include:

  • to consider and determine the Remuneration Policy, based on the performance and also bearing in mind that the remuneration is reasonable and sufficient to attract retain and motivate members of the Board and such other factors as the Committee shall deem appropriate all elements of the remuneration of the members of the Board.
  • to approve the remuneration of the Senior Management including key managerial personnel of the Company maintaining a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company.
  • to delegate any of its powers to one or more of its members or the Secretary of the Committee
  • to consider any other matters as may be requested by the Board;

The Nomination and Remuneration Committee Policy is effective from 5 th September, 2016 subject to any further amendment and modification, if desire necessary.

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