BHARTI TELETECH

PROJECT REPORT

ON

"COMPANSATION BENCHMARKING"
IN
Bharti Beetel

In the partial fulfillment of the requirement for the

award of the degree of

Masters of Business Administration

from KURKSHETRA UNIVERSTY, KURKSHETRA
SESSION (2006-2008)

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a

key role in the success of any venture. In the present world of cut
 BHARTI TELETECH

throat competition project is likely a bridge between theoretical and

practical working, willingly I have prepared this particular project.

First of all, I would like to thank the supreme power, the

almighty god who is obviously the one who has always directed me to
work on the right path of my life. With this grace this project could
become a reality.

I feel highly delighted with the way my dissertation report on

topic “ Compensation Benchmarking in BHARTI BEETEL” has been
completed.

Any accomplishment requires the effort of many people and

this work is not different. Firstly, I would like to extend my sincere
thanks to Mrs Ansu Dhansoia HOD MBA Dept. DIET for her kind to
co-operation and providing me good environment to work on.

I would like to thank Mr. Narendra Dhansoia,T&P Officer, DIET

to provide me the fruitful guidance to complete the project. Finally, I
would like to thanks all the faculty members and others people who
directly or indirectly help me completing the project.
 BHARTI TELETECH

PREFACE

Research work is management parlance is extremely important for a

given close view of the relatives of the real life business issues. For any
management student who is striving to perform outstandingly, it is of
paramount importance that apart from theoretical knowledge the most also
gain some practical knowledge. Survey report deals specially with providing
an opportunity to management students to have some exposure in real
business world. My study topic deals with analyzing the compensation
benchmarking in Bharti Beetel . Management ideas without any action based
on them mean I nothing. That is why practical experience is vital for any
management student. Theoretical studies in the classes are not sufficient to
understand the functioning climate and the real problems coming in the
way of management of Men, Material, Machine and Money. Thus practical
experience acts as a supplement to the classroom studies. It offers an
exposure to real practical of management in various organizations. It
exposes invaluable treasures of expenses to a student.

This dissertation deals with the application of theory to know the

consumer preferences & customer satisfaction, through market survey &
research. It was my fortune to do this dissertation. I learned a lot of new
things which could never been learned from the theory classes. This
dissertation report is a presentation of my work.
 BHARTI TELETECH

In the forthcoming pages, an attempt has been made to present a

comprehensive report concerning different aspects of my dissertation, the
overall knowledge gained by me will reflect in the report itself.

The employee is the vital asset of any organisation. Finally ten years
after the liberalization of India’s economy began. The market place has,
suddenly become tightening competitive. Not only have new players
stormed into the country, there are more tough competition then ever before
in every segment of every market.

The main objective of dissertation and project i.e. familiarization with

the necessary theoretical input and to gain sufficient practical exposure to
establish a distant linkage between the conceptual knowledge acquired at the
institute and practicing these concepts.
 BHARTI TELETECH

CONTENTS

Sr No. Policy Area

1.
ABSTRACT OF PROJECT
2.
RESEARCH METHODOLOGY
3.
COMPANY PROFILE & BHARTI VALUES
 Company Profile
 Bharti Values, Vision & Mission
4. SERVICE
CONDITIONS
 Definitions
 Office Procedures
 Code of Conduct
 Inter Company Transfer
 Inland Transfer Rules
5. EMPLOYEE ENGAGEMENT
 Human Resource Planning
6. COMPENSATION
 Compensation Structure for
Employee
JE I Grade & Above
 Compensation Structure for
Employee
Below JE I Grade
 Variable Pay Scheme
7. DATA ANALYSIS
8.
BIBLIOGRAPHY
9. RECOMMENDATION & CONCLUSION
10. ANNEXURE
 Questionnaire

ABSTRACT OF PROJECT:
 BHARTI TELETECH
The main focus of the study under the project is to Compensation
Benchmarking in the organization .

In 1985, Bharti TeleTech entered in to the technical collaboration with

Siemens AG, the German technological giant and set up a Bharti plant
in Ludhiana to manufacture telephones.

Come 2003 and Beetel has journeyed across eighteen years of creating
history. In 1991, Beetel manufactured phones for ‘Sprint’, the
American telecom mammoth. Shortly after, in 1993-94, came ISO
9002 accreditations for the manufacturing units – by this time two in
numbers, at Gurgaon and Ludhiana. And in a short span of time, Beetel
was already the market leader. Cornering a third of the Indian market,
Beetel became ‘India’s Favorite Phone’.

In between these years, while acclaim and achievements were flowing

fast and steady, Beetel was initiating and implementing steps that
would take them beyond the borders of India. The immediate necessity
was to establish an in –house research and development base. This
was necessary on two counts –Firstly, to indigenes technologies for the
local market, a d secondly, to pioneer new technologies that would
become benchmarks for the world to aspire to.

Success came on both fronts and fast. The first telephone instruments
get ISO accreditations, India’s first EPBT phone, the first to cross the 10
million-unit mark and thereafter 20 million marks, the only Indian
telephone company to be present in 30 countries mapping 5
continents, the biggest manufacturer of the world outside China. A
brand presents in every third I Indian home. The story of Beetel is one
of milestone, inspirational efforts, and teamwork and of an ambition
that knew no bounds.
 BHARTI TELETECH
METHODOLOGY:

The study is carried on in a proper planned and systematic manner.

This methodology includes

Familiarization with the organization.

Observation and collection of data.

Analysis of data.

Conclusion and suggestion based on analysis.

HYPOTHESIS

The organization follows a systematic compensation structure, which

contributes towards continuous flow of production without shortage of
labours.

SAMPLING

The study covers 20 executive, 40 employees/workers from different

departments/ sections of Nestle India Limited as sample in order to
elicit relevant facts. Since it is not possible to approach each and
every manpower of the organization.

UNIT OF STUDY:

An executive and a worker irrespective of their position and

placements in any of the departments of the organization is considered
as unit of study.

SOURCES OF DATACOLLECTION:

The primary as well as the secondary sources was used for collection
of data. In primary source of data collection the interview schedule
and questionnaire and opinion survey were used and in secondary
source of data collection relevant records, books, diary and magazines
were used. Thus the source of data collection was as follows:
 BHARTI TELETECH
SOURCE OF DATA COLLECTION

PRIMARY DATA SECONDARY DATA

1. Interview schedule 1. Diary

2. Questionnaire 2. Books

3. Opinion Survey 3. Other records

4. Magazines

The investigator used structural interview schedule, questionnaire and

opinion survey for collection of data from primary source. Interview
schedules were used for workers clerical category and questionnaires
were used for supervisory and executive cadre and opinion survey was
used to know the technology, perceptions, thoughts and reactions of
the executives, employees/workers and trade union members of the
organization.

The investigator used the secondary source like diary, books,

magazines and other relevant records for collection of data to know
about the industry as well as the respondents.

TABULATION, ANALYSIS AND INTERPRETATION:

After completion of data collection the editing of the responses go

obtained was done. This edited data further codified and code book
was prepared. On the basis of these tables the data were interpreted
and analyzed and conclusion was drawn.

LIMITATIONS:
 BHARTI TELETECH
Every scientific study has certain limitations and the present study is
no more exception. These are: -

LIMITATION OF THE STUDY

1. Due to heavy work load and lack of time in the organization the

employee could not give more information.

2. Some of the necessary and important information has not given

since it is so confidential to the organization.

3. Interviewing of the executive of top echelon position who are

making recruitment is busy in the Organization State of affair.
So it is not possible to contact all of those every busy executives.

4. The terminology used in the subject is highly technical in nature

and creates a lot of ambiguity.

5. Confidentiality of the management is the strongest hindrance to

the collection of data and scientific analysis of the study.
6. ll the secondary data are required were not available.

7. Respondents were found hesitant in revealing opinion about

supervisors and management.
8. In spite of all these limitations, the investigator has made a
humble attempt to present an analytical picture of the study with
some suggestion for the long run implementation.
BHARTI TELETECH

COMPANY PROFILE
 BHARTI TELETECH

Technology is mapping out a new world order today - a world in which individuals,
organizations and countries are becoming increasingly interdependent and
integrated. Driven by the spirit of entrepreneurship, we at Bharti are making the
most of the opportunities offered by this ever-changing scenario. Our world-class
ventures with our overseas partners have brought world-class products into the
country.

Bharti Teletech (BTTL) was established in the year 1985 with it’s first plant at
Ludhiana. The manufacturing activity commenced in 1987 with the first push
button telephone of India under the Beetel brand rolling out of Bharti Teletech’s
Ludhiana plant. In a short span of time, Beetel has grown from strength to
strength and the company has crossed many milestones. Today Bharti Teletech
has two ISO 9000 certified plants with an annual capacity of 5 million units p.a.
Bharti became the first company to manufacture cordless telephone and
telephone answering machines in India. It is also the first to launch SMS phones
on fixed line in the country thereby heralding a revolution in fixed line SMS
telephony. In line with customer needs, Bharti was also the first to launch backlit
LED and GSM Interference free phones. We are the first Indian company to
manufacture 20 million phones. Today, one out of every three phones in India is a
Beetel. With rapid growth over the years, Bharti Teletech today is the largest
manufacturer of phones in the Globe outside China.

Beetel has a range of over 35 models across basic, feature and cordless segments
and continues to add a new model every month. With a current market share of
over 40%, Beetel is the first choice of the Indian consumer. In the growing private
service provider segment, Bharti Teletech commands a lion’s share of over 90%.
In the extremely competitive BSNL/ MTNL segment, we have crossed a market
share of 50%. BTTL has successfully met the challenge of providing quality
products at competitive prices.

Exports is a huge thrust area for Bharti. In 1991, Bharti became the first company
to export phones to Sprint Inc. USA – a recognition of our world class quality. The
export operations have been highly successful over the years. In 2003-04, exports
crossed the half million mark - a quantum jump since we started. Today, we are
present in 30 countries across 5 continents despite intense competition from the
strongest brands in the world. Brand building initiatives have also taken fruit in
the global arena. The Beetel brand is present in Vietnam, Iran, Chile, Oman,
Bangladesh, Mauritius and Sri Lanka. This list continues to grow with each passing
month and it is a matter of time before Beetel becomes a truly global brand.

Bharti has recently tied up with Atlinks to export 1 million GE phones (No. 1 brand
in residential and office telephony worldwide) over the next 2 years. This is the
first time that Atlinks would be outsourcing from India against their 100% sourcing
from China – a testimony to Bharti’s manufacturing strength. It’s list of credits also
include a contract with France telecom for supplies of our products for their
worldwide requirement as well as supplies to Telefonica, Peru - setting the base
for their global requirements.
 BHARTI TELETECH

With rapid progress in technology, Bharti Teletech realized the need to set up a
strong R&D unit to stay abreast in the technology era. It’s in-house R&D is
recognized by the Deptt. of Science & Industrial Research, Govt. of India. Our R&D
team has always been proactive in delighting the consumer with innovative
products. It has introduced 37 models in 2003-04 across basic, feature and
cordless segments both for the domestic and export market. The revolutionary
SMS phone, the award winning Millennium Clip Max, the DF5600 - first GSM
Interference Free Phone have all found their birth in our R&D labs.

Bharti’s ethos of bringing the best goes right down to its backbone-it’s human
resources. We, at Bharti, believe that the members of our group are most valuable
and crucial resource. As part of our HRD philosophy, we provide a motivating
environment, which is conducive to effective utilization of human resources by
maximizing individual development and growth. This manual has been prepared
to help you understand the Company’s policies and explain the benefits the
employees will receive. Our HR department shall be pleased to provide any
clarifications or more information, if desired by any employee, at any time.
 BHARTI TELETECH

BHARTI VALUES

CUSTOMER: We will be responsive to the needs of our customers

PEOPLE: We will trust and respect our employees

LEARNING: We will continuously improve our products and services –
innovatively and expeditiously
COMMUNITY & PARTNERS: We will be transparent and sensitive in our
dealings with all stakeholders

VISION

Work expertly and passionately to make “beetel” the choice of customers in

all markets we wish to enter worldwide. Ensure return to all stakeholders
while upholding values and ethics.

MISSION

To be a dominant player in the Indian Ocean region for telecom customer

premise equipments and to obtain a meaningful share of the global demand
at Bharti Teletech.
We will work with passion to achieve this goal by creating core competencies
in design, manufacturing and delivery processes. In creating sustainable
value for our shareholder’s we would make responsible use of our resources
while being careful about the environmental effects of our processes.
We would always uphold human values, business ethics and be responsible
corporate citizens, contributing to the progress of the nation.
BHARTI TELETECH

DEFINITIONS
 BHARTI TELETECH

Company

"Company" shall mean Bharti Teletech Limited, which includes it's units at
Ludhiana, Goa and other functional departments working for the same.

Employee

"Employee" means a person in the employment of the company other than

the casual, work-charged, retainer or contingent staff or workman but
includes a person on deputation to the company.

Work Premises

"Work premises" include the precincts of the division and other places of
work where an employee is deputed to work.

Establishment

"Establishment" means premises owned/leased/hired by Bharti Teletech

Limited wherein any trade, business, profession or manufacturing process
related to company’s business is carried on or any work in connection with or
incidental or ancillary thereto is carried on.

Rules

"Rules" means specific provisions of the policies existing and as may be

amended by the management from time to time.

Service

"Service" means the period for which an employee has been in continuous
service, including service, which may be interrupted on account of sickness
or authorized leave or an accident or any cessation of work, which is not due
to any fault on part of employee.

Employment

“Employment” is a contract of service between the company and employee

where under the employee agrees to serve the company subject to its control
and supervision.

Employees are classified as :-

A) Permanent Employees
B) Probationers
 BHARTI TELETECH
C) Trainees
D) Apprentice
E) Contractual

A) Permanent Employee means an employee whose appointment has

been confirmed in writing by the management.

B) Probationer means an employee who is provisionally employed to fill a

permanent vacancy and whose performance shall be evaluated for
absorption in the permanent rolls of the Company.

C) Trainee means a person who has no prior relevant experience and who
shall be provided ‘on the job’ training before absorption in the
permanent rolls of the Company.

D) Apprentice is a person who has no prior experience and who is

provided opportunity to undergo industrial training under the
Apprentice Act.

E) Contractual employee means a ‘workman’ engaged by the contractor

to carry out any unskilled, semi-skilled, manual or clerical work in the
establishment.
 BHARTI TELETECH

OFFICE PROCEDURES
a) Working Hours

Working hours for different classes and employees shall be notified by the
Company from time to time, and should be strictly adhered to.

b) Lunch Hours

Lunch break shall be of half hour duration.

c) Public Holidays

National & Festival Holidays to be observed by the Company shall be

announced at the beginning of each year.

d) Absence

Employees are expected to be at work each day as per schedule. In case of

sickness or an emergency, the manager concerned should be notified within
two hours of starting time on that day.

e) Change of address and telephone

All employees are expected to notify their Manager and the HR Department
when there is a change in address or telephone number within two weeks of
occurrence.

f) Attendance

All employees shall report for duty latest by the time mentioned in ‘
WORKING HOURS’ or as notified by the company from time to time.

If an employee is late more than three times in a month, he/she is liable to be

treated as absent for half a day until the same is regularized by the HoD.

No employee after marking his/her attendance should leave the office

without permission or sanction of his/her immediate superior.
 BHARTI TELETECH

I) Procedure

All offices of Bharti Teletech shall maintain attendance register or

electronic time punching system at the place of work. On arrival all
employees shall mark their attendance. Where time punching
machines are provided attendance shall be recorded by punching their
respective cards. For employees in SMI & above grades, punching their
cards at the time of arrival may not be mandatory.

II) Out-Door duty

While going out of office on official work, an OD slip is to be filled in

and got signed by the authority concerned and sent to the Personnel
department. In case the employee is detailed for out-door duty after
the day’s work, then OD slip is to be submitted to the Personnel
department on the day of return from OD. The format of OD slip is
enclosed in (Annexure I).

g) Probation

The employee shall be on probation for a period of 6 months from the

date of joining duty. The management may, however, extend the
probation by another 6 months, if the performance of the employee is
not found satisfactory. On completion of probation and subject to the
performance being found satisfactory, employee shall be confirmed
through a letter to this effect, issued by the Management.

h) Notice Period

a. During Probation

The employee can leave service of the Company by giving 7

days notice in writing or basic salary in lieu thereof. Similarly,
the Management may terminate the services of an employee by
giving 7 days notice or basic salary in lieu thereof.

b. On Confirmation

After confirmation, an employee in AGM and above grades

would be required to give two moth’s notice in writing or basic
salary in lieu thereof, if and when he/she decides to leave
service of the Company. Similarly, the Management may
terminate the services of employees in AGM & above grades by
giving 2 month's notice or basic salary in lieu thereof. For all
other employees, the requirement of notice or salary in lieu
thereof shall be one month, on either side. (Formats annexed)

i) Retirement

All employees shall retire on the attainment of 58 years unless

specially required by the company in writing to continue in service
beyond this age. The retirement would be effective from the last day
of the month in which they complete 58 years of age.
 BHARTI TELETECH

CODE OF CONDUCT

All employees shall be at work in the establishment at the time fixed and
notified by the management. An employee attending late shall be liable to
be treated as absent.

All employees are strongly encouraged to make a distinction between official

company business and personal interests. For instance company material,
equipment, tools, etc. are not for personal use.

Employees should avoid actions, which damage the reputation of the

company.

Whenever an employee is invited to deliver speeches and attend meetings in

relation to his official duties, he should first take approval from the
Management by making a written request to the Personnel Department.

An employee is required to be conscious of time and cost issues and ensure

no misuse of the same.

The following acts and omissions on part of an employee shall amount to

misconduct as per the standing orders/or otherwise :

 Willful insubordination or disobedience,

 Going on an illegal strike or abetting, aiding/instigating or acting
in furtherance thereof,
 Willful slowing down in performance of work,
 Engaging in trade within the premises of the Establishment,
 Drunkenness or disorderly behaviour during working hours,
 Act subversive of discipline
 False claims/declarations (on non-compensation heads).
 Misuse of power / authority for personal gains.
 Taking out any property/document of outside the premises
without prior approval of the competent authority.
 BHARTI TELETECH

7. For misconduct committed by an employee, the Company shall inflict

any of the following punishments:
 Warning
 Suspension
 Discharge
 Dismissal

The rules applicable to the employee of Bharti Teletech Limited have been
framed with a view to govern the terms and conditions of the employees
Consequently, they can be altered/amended/modified/cancelled or new rules
added from time to time.

In addition, employees would also be governed by the Bharti’s Code

of Conduct, circulated separately from time to time.
BHARTI TELETECH
 BHARTI TELETECH

INTER-COMPANY TRANSFERS

Background

Bharti Enterprises with its ambitious growth plans is poised for major
expansion in coming years. This will open up ample growth avenues within
the Group for in-house talent. As per our corporate philosophy inter-company
movement for deserving employees to provide them opportunities in terms of
wider exposure, better growth and higher responsibility is encouraged.

Objective

The basic objective of this policy is to lay guidelines for affecting inter-
company transfers.

Coverage

Management staff in grade MI and above shall come under the ambit of this
scheme. Other levels can be considered by concerned units themselves
purely on case-to-case basis.

Procedure

• Interested employees shall make a written request indicating their

interest in an opening within the Group. In case the person can be
released, then such requests shall be processed through reporting
authority, functional head and Company HR Head.

• Concerned HR Head shall then undertake the following procedures :

a) For Managers and below, the respective HR Departments of the two

concerned Units/Companies shall deliberate on the candidature and
initiate all formal proceedings once the decision for movement is
taken.

b) For Sr. Managers and above, concerned HR Head shall forward their
candidatures to Corporate HR, who will act as a nodal point for inter-
company movements for such cases.

For both (a) & (b) above, the details of the candidate would be forwarded on
the format marked - (Annexure I).

• Corporate HR will co-ordinate with Company where vacancy exists,

arranging meeting/discussion, examine other relevant aspects and obtain
necessary approvals for such movements.
 BHARTI TELETECH

• In case both the units consent to affect a movement, formal orders shall
be issued by the relieving company to the concerned employee, who will
join at the new place of posting on the date specified in the transfer letter.

• Such transfers shall ensure ‘Continuity of Service’ for terminal benefits.

The Company receiving such employees shall release fresh Letter of
Appointment, with a clause mentioning ‘Continuity of Service’.

• In case of each transfer that may be so affected, the total emoluments (as
drawn by the concerned employee in the relieving Company) shall be
protected by the receiving Company.

General

• In order to boost morale, provide better growth opportunities to the

deserving employees and create healthy competition, companies should
encourage such inter-unit movements. This also provides continuity of
Bharti culture and values at new locations / units.

• Upon transfer he will be governed by rules, regulations and practices of

the new location / company. His designation, grade and salary fixation will
be done keeping in view of the internal consistency at the new location /
company.
 BHARTI TELETECH

INLAND TRANSFER RULES

Employees receiving transfer orders, necessitating movement from one

location to another, will be governed under the following rules.

Objective

 An employee to relocate to a new city on official transfer.

 To effect all movement from one location to another as smoothly as

possible.

Transfer Expenses

 Mode of travel will be the same as mentioned in case of official tour.

 Family shall include spouse, children and other dependents as per

declaration made in company’s job profile form.

 Reasonable expenses incurred during the journey (i.e. from the station of
displacement to the station under transfer) like food, portage etc. shall be
guided as per the ‘Transit DA’ clause of the Inland Travel Policy

Baggage Removal Expenses

 The company shall reimburse to the employee under transfer, actual

expenses made towards the transport of personal and household
belongings, as baggage removal expenses (including packing and
transit insurance expenses).

 In case the staff under transfer is maintaining a vehicle, the company

shall bear the transportation expenses of one personal vehicle by the
most economical means to the station of posting / transfer. In cases
where the employee drives his vehicle to the station of transfer, he may
claim expenses, with prior approval of the management.

Transfer advance

The entire estimated expense of a transfer must have the prior approval of
the HOD/Head of HR and CEO. The employee under transfer can take
reasonable advance, wherever required.
 BHARTI TELETECH

Tour prior to transfer

 Management staff transferred to another station may undertake tours of

not more than 7 days to the reporting station for arranging of a suitable
accommodation, school admissions of wards etc.

 Such tours will be with the approval of the Head of Department (HOD).

Joining time

 In addition to the actual time spent, a joining time of 2 days at the station
of departure and 2 days at the reporting station may be allowed to the
employee, subject to prior approval of the HOD/Head of HR.

 This period will not be treated as leave.

Temporary postings

 Transfers for less than six months duration will be treated as temporary
postings.
 In such postings, transportation expenses of personal baggage, and
where absolutely necessary, of the vehicle are reimbursed by the company
on prior approval of the competent authority.
 Where the temporary posting is of less than a month, DA will be
permitted as per the rules (as in official tours) after prior approval of the
management. If the period exceeds one month, 50% of the DA shall be
payable.

The management may amend/modify these provisions on transfer at any

time, at its sole discretion.
BHARTI TELETECH
 BHARTI TELETECH

HUMAN RESOURCE PLANNING

Guidelines on Manpower Planning & Budgeting

Objective & Scope :

An essential pre-requisite of a world-class work force is a good human

resource planning system, which ensures that the right person is available for
the job. The Company would therefore need to review manpower
requirement for projected workload in each ensuing year on a regular basis in
the form of a detailed and accurate Annual Plan. This plan would not only
form the basis for recruitment and induction of quality manpower in the
Company, but would also provide inputs for redeployment in the Company.

Methodology :

While reviewing manpower, factors to be considered would be as follows :-

• Increase in business activity in terms of turnover, sales, production etc.

• Increase in level of automation / computerization
• Increase in productivity levels
• Extent of sub-contracting, ancillary development (wherever applicable)

Based on the above, detailed manpower requirement would be worked out by

each HoD of the Company with proper justification. The HR department would
then assess the requirement against present and future plans and ascertain
the justification for the position. All such individual requirements would then
be co-ordinated and integrated by HR department. HR department, in
coordination with the concerned HoD, shall prepare the position description.

The complete plan, once prepared would throw up issues such as:
• Gaps in Manpower availability
• Gaps in Skill/Competency level
• Any modifications required in the existing Organization structure
• Productivity Ratios.

Once the Plan is finalized, level-wise requirement of additional personnel

would be worked out for each function. This would result in the recruitment
plan. An estimate of time frame would also be necessary to ensure that the
recruitment exercise is carried out well in time to have the person in position
to meet the projected workload.

Final Approval :
Once the Annual Human Resource Plan is finalized for the Company, it will
then be sent to Corporate for examining and final approval. The approved
plan will be used for the purpose of recruitment and other personnel
decisions at the Company.
 BHARTI TELETECH

Compensation structure for JE I & above grades

Objective
• To drive Compensation on a Cost to Company (CTC) basis
• To streamline the compensation structure
• Allow flexibility in deciding the Compensation Structure

Coverage
All regular employees on rolls of the company in grade JE I & above grade
 BHARTI TELETECH
Components of Compensation Structure

The compensation of employees is broadly classified as follows.

A) Cost To Company (CTC)
a. Fixed Cost To Company (FCTC)
b. Variable Cost To Company (VCTC)
B) Perks which are not part of CTC

Compensation Structure
The Cost to Company (CTC) is the sum total of an employee’s Fixed Cost To
Company (FCTC) and Variable Cost To Company (VCTC). The Fixed Cost
(FCTC) is an assured monthly / annual payment and Variable Pay (VCTC) is a
lump sum payment on the basis of performance (based on certain
parameters) paid at the end of the financial year.
The payout heads under each of these categories are as follows :
Fixed Cost To Company (FCTC)
• Basic Salary (mandatory)
• Provident Fund (mandatory)
• Special Allowance
• House Rent Allowance /Company Leased Accommodation
• Conveyance Allowance
• Vehicle Hiring / Car EMI
• Fuel & Maintenance (including insurance) Reimbursement
• Drivers Wages Reimbursement
• Medical (Domiciliary) Reimbursement
• Leave Travel Assistance
• Superannuation

Variable Cost To Company (VCTC)

• Super pot
• Variable Pay
• Performance Linked Incentives (PLI)
• Exgratia / Bonus

Guidelines for fixing Flexible Pay Plan

• HR will fix the employees Fixed Cost To Company and the Variable Pay
amount at 100% Performance at the time of recruitment / annual
review / midterm corrections (if any)

• Each employee will finalize his / her compensation structure in the

compensation sheet attached as Annexure I, based on the laid down
 BHARTI TELETECH
guidelines and declare the same at the time of joining / within 15 days
of communication of salary revision.

• The employee can change his / her compensation structure only once
during a financial year unless his / her compensation gets revised
during that financial year.

• Any balance outstanding in the name of the employee at the end of

the financial year would be paid to the employee after deducting
applicable taxes in the last month of the current financial year.
However, this excludes allocations made towards LTA as the balance
may be carried forward to the forthcoming year.

Procedure for Payment

1. The following components would be paid through the pay slip as
monthly allowance and would be shown as earnings:

Basic Salary
Special Allowance
House Rent Allowance
Conveyance Allowance

2. The expenses on the following components would be reimbursed to the

employee to the extent of the entitlement, subject to production of
relevant supporting (bills / receipts):

Conveyance Reimbursement
Fuel / Maintenance (including Insurance) reimbursement
Drivers Wages
Medical
Leave Travel Allowance

3. Any unclaimed reimbursable amount towards Fuel & Maintenance,

Driver’s wages and Medical (Domiciliary) shall be paid as Special
Allowance at the end of the financial year.

4. Claims are to be made in the specified format (Monthly

Reimbursement Form) by the individual and submit to the HR / Admin.
Department for verification. Employee can collect the payment from
the Accounts Department.

5. For Company Leased Accommodation & Vehicle Hire Charges,

company would send cheques directly to the party / landlord.

6. Applicable amount towards PF & SA would be deposited in the relevant

Fund account of the employee.
 BHARTI TELETECH
Fixed Cost to Company (FCTC) - Components

Basic Salary :

This is a mandatory component and is paid through the pay slip on a monthly
basis. The basic salary shall be an amount ranging between 30 – 40% of the
individuals FCTC. For existing employees, if their current basic is more than
40% of their FCTC, the same % may continue. Provident Fund and Gratuity
are linked as a percentage to the Basic salary, which is mandatory.

Provident Fund

This is a mandatory deduction as per law. Currently, it is fixed at 12% of

Basic Salary. The employee can however, opt for a higher % age (upto a
maximum of 20%) as voluntary PF contribution, if desired. However, in any
situation, employer’s matching contribution would be up to a maximum of
12%.

House Rent Allowance (HRA) :

The employee is free to allocate a fixed percentage of Basic Salary or have a

fixed amount allocated under this head only if the employee is not opting for
Company Leased Accommodation. This would be paid through the pay slip as
HRA on a monthly basis.

Company Leased Accommodation (CLA):

Employee in E II grade and above may opt for Company Leased

Accommodation, instead of the House Rent Allowance. In such case, the
rental cheque shall be directly sent by the company to the landlord and
would be paid in advance for the month.

Self Lease: Company lease accommodation can include premises

owned by the employee and leased to company. Income of employee
from self-lease would be his income from house property.

Security Deposit/Advance Rent for Company Leased

Accommodation
Maximum amount of 3 months rent can be extended as Security
deposit or advance rent. However, in case an employee is going for
self lease or taking the house of any of his/her immediate family
 BHARTI TELETECH
members/relatives, no advance rent or security deposit or brokerage
would be borne by the company.

The security deposit would be treated as imprest in the name of

employees. In case of separation, it will be the responsibility of the
employee to get the security deposit and advance back for the purpose
of final settlement.

Brokerage

If the Company Leased Accommodation is finalized through a broker

then brokerage charges upto half months rent shall be considered
based on proof. Brokerage charges would be admissible once in two
years only and payable to Broker directly

The employee intending to get CLA would submit a written application. The
Lease Agreement needs to be signed by authorized signatory.

Special Allowance :

Any unaccounted amount not opted / claimed under any other components
could be accounted under special allowance. There is no restriction on the
amount to be allocated under this component. This would be paid through
the pay slip on a monthly basis.

Medical (Domiciliary) Reimbursement

Employees who are not covered under ESI scheme can decide an annual
amount
upto a maximum of Rs.15000/- towards domiciliary medical.

The amount set aside towards domiciliary medical can be claimed through
the claim form along with supporting bills, during the course of the year but
not more than once in a month. The year for the purpose would be
considered as the financial year.

Leave Travel Assistance (LTA)

An employee who is not covered under ESI scheme can decide an amount for
LTA for a particular year. The reimbursement would be made against the
production of actual travel documents / supportings towards travel of self &
family (spouse, dependant children & parents).

General:

LTA can be claimed after completion of one year of service with the
company.
LTA can be claimed at any time during the financial year.
 BHARTI TELETECH
LTA can be claimed only after taking a minimum of five days Leave.

Employee can avail up to 80% of entitlement as LTA advance, not

earlier than one month before the commencement of leave. The
advance shall be adjusted against the claim to be submitted within a
month after return from leave. For LTA purpose, the entitlement shall
be calculated for a period from the last LTA claim to the month in
which the next LTA is being claimed

In case, due to exigency of work, employee is not able to proceed on

LTA leave, LTA amount can be paid as a Special Allowance. In such
case, there would not be any need to take leave. However, this
amount paid as special allowance and would be fully taxable.

Employee shall be allowed to carry forward his/her LTA amount during

the block of 4 calendar years (as per IT Act). If the employee does not
claim LTA during the specified block, the unclaimed LTA amount shall
be paid to employee as taxable salary on close of the 4 year’s block
period.

In cases of separation, LTA amount shall be paid on a pro-rata basis as

special allowance and would be subjected to tax.

Note: Two LTAs in a block of four years are exempted from tax under IT
rules. The block years as per IT Act are 2002 –05, 2006 –9, etc.
 BHARTI TELETECH

Conveyance Allowance :

Conveyance Allowance is paid to take care of employee’s travel from

Residence to Office and back. Conveyance Allowance would be paid to
employees through the payroll. The grade wise limit of conveyance Allowance
shall be as per the table below:

Grade Conveyance Allowance

(Rs. PM)
JE I 400
JE II 500
JE III 600
EI 700
An employees can take conveyance allowance higher than the specified
amount but upto a maximum of Rs. 800/- PM by adjustment from his / her
FCTC.

Conveyance Reimbursement :

Reimbursement of conveyance expenses would be allowed for official travel,

related with the job requirements. Conveyance reimbursement shall be paid
separately through vouchers based on self-declaration. The grade wise limit
of conveyance Reimbursement shall be as per the table below:

Grade Conveyance Reimbursement

(Rs. PM)
E II 1000
MI 1500
M II 2000

Employees availing Vehicle Hiring Charges (car EMI) are not eligible for
Conveyance Reimbursement

Car Hiring Charge (EMI)

Employees in the grade M I* and above can choose to allocate the amount of
Car Hiring as per the table below. Car hiring charges would become payable
only when the car hiring agreement is signed. The vehicle should be in the
name of employee, spouse, immediate relatives or close friends.

Grade Car Hire charges in Rs. Per

month as per Grade
SMII 11000
SM I 8000
M IV 6500
MIII 5500
M II 2600
MI 2600
 BHARTI TELETECH

• Based on the actual car EMI, the employee may take a higher Car
Hiring than the specified amount, mentioned in the above table, but
upto 15% of FCTC ,by adjustment from his / her FCTC. The car EMI
amount shall be calculated @ Rs. 3000/- per lac, based on the car
value.

* For existing employees in MI grade, an additional car-hiring amount of

Rs.2600/- will be given from the month in which he/she completes 10
years service in Bharti group, subject to the employee entering into car
hiring agreement.

The owner of the vehicle will have to sign an operating lease agreement with
the company as per the prescribed formats. The Administration department
shall execute the agreement. The onus would be on the employee to get the
agreement signed. Vehicle hiring rentals would be paid by cheque, directly to
the hirer / person in whose name the vehicle is registered.

Fuel & Maintenance (including Insurance) Reimbursement

Employees would be entitled to claim reimbursement of expenses towards

Fuel & Maintenance (including insurance) as per the table below. This would
be applicable only when there is a Car Hiring agreement and the
reimbursements would be against production of relevant bills.

Grade Fuel/Maintenance/Insurance
Rs. Per month as per Grade
SMII 8400
SM I 7250
M IV 6350
MIII 5700
M II 2000
MI 1500

Based on the actual consumption, the employee may take an amount higher
than the specified amount up to a maximum of Rs.15000/- pm, by adjustment
from his/her FCTC.

Fuel & Maintenance (including Insurance) reimbursement benefit can be

availed on monthly accrual basis by furnishing relevant bills/supportings.

For official commuting, employees would be entitled to claim reimbursement

as per the prevailing mileage rate specified under the Local Conveyance
policy.
 BHARTI TELETECH

Drivers’ Wages

Employees in the grade of M I and above would be entitled to claim driver

wages as per the table below. Driver wages would be applicable only if there
is vehicle hiring.

Grade Driver’s Wages

SMII 3000
SM I 3000
M IV 2500
MIII 1800
M II & M I 1500

Eligible employee may allocate an amount higher than that specified in the
table above but upto a maximum of Rs.5000/- per month, by adjustment from
his/ her FCTC. Employees availing this amount would be required to submit a
copy of the driving license of the driver engaged. This amount would be
reimbursed in furnishing the receipt of payment made to the driver.

Superannuation

The employees in the grade of MI and above can choose to take

Superannuation in their FCTC up to a maximum of 15% of the basic salary.
The contribution amount opted by the employee shall be deposited by the
company to their Superannuation fund. The employee can come out of the
superannuation trust as per the guideline of superannuation scheme.
 BHARTI TELETECH

Variable Cost To Company (VCTC)

1) Super pot.

Super pot is an incentive scheme to drive the top-level team to achieve the
budgeted targets. The scheme, the amount of super pot and the persons who
would be covered under the scheme would be solely decided by the VC & MD.
As per the existing scheme, on achievement of the budgeted cash profit
target for the year, the top team would be entitled to a super pot in the ratio
of their fixed salary for the year. The list of eligible employees and kitty for
super pot every year shall be approved by the VC & MD at the beginning of
each financial year.

Super pot would be paid as lum-sum amount.

2) Performance Linked Incentives

The senior level employees are covered under Performance Linked Incentive
(PLI) scheme. The employees under PLI shall sign off their KRAs at the
beginning of the financial year and assessment shall be done at the end of
the financial year based on achievement of their KRAs.

3) Variable Pay

The “Variable Pay” has been introduced in the salary structure of employees
(non PLI) effective from April 01, 2004. The variable pay shall be paid at the
end of the financial year in accordance with the laid down performance
parameters. The performance parameters for grant of the variable pay for
each financial year would be informed to employees separately.

Variable Pay component would be paid as lump sum amount.

4) Exgratia / Bonus

Based on performance of the company, Exgratia / Bonus shall be decided and

shall be disbursed during Diwali time. Bonus shall be paid to all employees
who are covered under Bonus Act. However exgratia payment shall not be
made to an employee who is not on the rolls of the company at the time of
disbursement.
 BHARTI TELETECH

Other Benefits (Not part of CTC)

Gratuity

All employees on the permanent rolls of the company are eligible for gratuity
on completion of 5 year’s continuous services in the company as per rules of
gratuity trust.

The amount of gratuity payable after 5 years continuous services will be 15

days salary for every year of completed service in the company calculated on
the basis of 26 days a month on the last salary drawn immediately
proceeding the date when the Employee becomes entitled to the gratuity. As
per the provisions of “The Payment of Gratuity Act”, the limit for gratuity is
currently Rs. 3.5 Lacs. In case the actual gratuity amount is higher than the
prescribed limit, the company shall pay the higher amount over the
permissible gratuity amount as ex-gratia.

ESI

From April 01, 2004, employees who are drawing a “salary” (as per the
definition of salary under ESI Act) less than Rs.7500/- per month are covered
under ESI Act. The employer’s contribution will be an amount equivalent to
4.75% of the Salary while employee’s contribution would be 1.75% of the
salary. All other terms and conditions would remain the same and governed
by the Act.

Group Personal Accident Insurance

All employees would be covered under the Group Personal Accident

Insurance scheme.

The maximum amount insured is linked to the salary slabs as follows:

Salary Range (all Coverage in Lacs

components for ESI Medical Death Coverage Total
salary)
More than 75001 3 12 15
25000 – 75000 3 7 10
20000 – 24999 2.5 6.5 9
12000 – 19999 2 6 8
7501 – 11999 1.75 5.25 7
Up to 7500 1.25 3.75 5
* Salary means all components which are included in the “salary” definition
under ESI
 BHARTI TELETECH

Mediclaim Insurance Policy

All regular employees who are not covered under ESI Act, would be
entitled to claim reimbursement of the annual premium amount paid for
medical insurance for self upto a maximum coverage limit as per the table
given below :

Grade / Level Maximum Coverage limit (Rs.)

CEO 3.00 Lacs
SM I – SM II 2.00 Lacs
MI ~ M IV 1.00 Lacs
E II & below 0.50 Lacs

The employee would be reimbursed 50% of the premium paid for a

medical insurance of each family member, subject to a ceiling of Rs. 250
per annum per member. Family for the this policy would be defined as a
unit of maximum three members - Spouse and two children/dependent
parents only.

General

All necessary formalities for obtaining mediclaim policy for self and family
members would be completed by the employee directly with the
insurance company. Similarly, the employee would also settle all claims
from the insurance

Club Membership

Employees in grade SM I and above shall be reimbursed the monthly

subscription for one club on actual but not exceeding Rs. 4800/- per annum.
No entrance fee is payable. The employee should either be an existing
member of that club or obtain membership on his / her account.

Membership fees of professional bodies

Employees in grade MI and above can claim reimbursement of the

membership fee in respect of their membership of recognized professional
bodies. The reimbursement shall be supported by proof.

The limits for reimbursements are as under:

Grade No. of Max. entitlement

professional (Rs.) PA
bodies
SM I & II 2 1,000/-
 BHARTI TELETECH
M I to M IV 1 500/-

Credit Card Membership fees

The Company may reimburse annual subscription of select credit cards the
monetary limit in respect of annual subscription fee shall be as under:
Grade Max. entitlement (Rs.) PA
SM II 2,000/-
SM I 1,000/-
M I to M IV 800/-

Brief Case / Bag

Brief Cases / bag may be provided by the Company from time to time to such
employees who require this facility in line with their official duties. All such
items would be deemed as Company’s property and may be reclaimed by the
company, at its sole discretion any time during the course of employment or
at the time of separation.
The limits for reimbursements shall be as under:

Band Max. entitlement

(Rs.)
SM I & II 3,000/-
M III to M IV 2,500/-
MI to M II 2,000/-

Replacement can be given after 3 years. Depreciation will be calculated

accordingly and no recovery would be made from the employee if the items
are older than the period specified.

Official Mobile Phone

Employees in the grade MIII and above shall be entitled to official mobile
phone.
Employees in below MIII grade may be provided official mobile connection
strictly on “need” basis, on the recommendation of HOD & Personnel
Department. The final approval for official connection is that of CEO. The
request for official mobile connection should clearly explain the justification
for the same.

In case of official mobile connection, the company will pay the monthly bill
directly to Airtel. All employees who are provided the official mobile
connection have to segregate personal STD / ISD calls before the final
payment to Airtel
 BHARTI TELETECH
Official Residence Phone

Where employees have been authorized residential telephone, rental, local

STD, ISD call charges for official purpose only are paid by the company in the
case of personnel of grade MI and above.
 BHARTI TELETECH

Annexure I

Compensation sheet

Name Designation
Grade Dept

CTC PA for the year ____________ Effective date

FCTC PA for the year ____________ VCTC PA for the year
___________

Break up Take Home Calculations (per

month)
Components Amt Opted Monthly through
(Rs.P.M) payroll
Basic (Min 35% of FCTC) Basic
HRA HRA
Special Allowance Special Allowance
Conveyance Allowance (no Conveyance
vehicle hiring charges Allowance
applicable)
Provident Fund(@12% of Deduction for
Basic) Employee
Contribution to PF
ESI as applicable Deduction for
Employee
Contribution to ESI
Flexible Pay Reimbursement
claimable on
 LTA
production of bills
 Medical (Flexi Pay)
Reimbursements
 Vehicle Hiring(not to
exceed 15% of FCTC/
or amount specified
whichever is less)
 Petrol/Vehicle
Maintenance
 Driver’s Wages
Superannuation (applicable
for Assistant Managers and
above)
FCTC (Flexible Cost to
Company) per Month (A)
VCTC (Variable Cost to Annual Payout of PLI
Company) Per month. on achievement of
targets at 100% level
CTC As PM Net Payable Per
Annum before Tax
deduction
 BHARTI TELETECH

I understand that the above break up given on this sheet would be taken as
final break up w.e.f -------------- and valid till there is any revision of my total
compensation.

Signature of Employee: Date:

Signature of Compensation
Manager
 BHARTI TELETECH

Third Party Lease

LEASE AGREEMENT
(Stamp Duty will be as per Stamp Act)
This Deed of Lease is made on this ____ day of _________ between ___________
S/o/ D/o _________ R/o ________________ hereinafter unless otherwise
designated called “the Lessor” (which expression shall unless excluded by
or repugnant to the context or meaning thereof be deemed to mean and
include his heirs, executors, administrators and assigns) of the One Part AND

Bharti Teletech Limited, a Company incorporated under the Companies Act

1956, having its registered office at D-195, Okhla Industrial Area, Phase I,
New Delhi 110 020 here in after called “the Lessee” (which expression shall
unless excluded by or repugnant to the context or meaning thereof include
their successors and assigns) of the Second Part and Mr./Ms.
______________________ S/D/W/o ___________________ employed as
_______________________by Lessee, hereafter referred to as “ confirming Party”
(which expression shall unless excluded by or repugnant to the context or
meaning there of be deemed to mean and include his heirs, executors and
assigns ) of the Third Part

WHEREAS the Lessor is the owner of (address of property)

______________________________________________________________________________
consisting of __ bed rooms, __ drawing, ___ dining, Kitchen, __ Toilets &
Balconies, fitted with modern fittings and fixtures hereinafter called the ‘said
premises’.

AND WHEREAS the Lessor being desirous to give on lease and the Lessee
having agreed to take the said premises on lease from the Lessor for the
residential purpose of the confirming party is executing this Agreement on
the terms and conditions contained hereinafter.
 BHARTI TELETECH

NOW THIS LEASE AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY

AND BETWEEN THE PARTIES AS FOLLOWS :

1. The Lessor hereby agrees to permit the Lessee the use and occupation
of the said premises for the residence of (name the confirming Party)
_______________________________ and his family only (the confirming
Party). The Lease shall stand terminated in case the confirming party
_______________ is transferred out or leaves the employment of Lessee
and the notice of such termination is given in writing to the lessor
either by the lessee or the confirming Party.

2. The effective date of commencement of the lease shall be

_____________ and shall be for a period of ____ months when it shall
stand automatically terminated. The lease can be renewed for a
further period of _____________ on the consent of the parties hereto on
mutually agreed terms reduced in writing.

3. The Lessee shall pay to the Lessor in advance a monthly rent of

Rs.___________(Rupees _________________________________________) on or before
7th day of each month. The Lessee also agrees to deposit an interest free
security deposit equal to --------- month’s of rent amounting to Rs . ------------
(Rupees ------------) refundable upon the expiry of the lease. The refundable
security deposit will remain deposited with the Lessor during the whole
period of lease without interest. In the event the security deposit is not
refunded upon the expiry / earlier termination of the lease, the Lessee shall
be entitled to withhold the possession of the said premises without any
liability to pay the monthly rent till such time the entire security deposit is
refunded.

4. All charges for electricity and water consumption for the said premises
shall be paid by the Confirming Party directly as per the bills received
by him.
 BHARTI TELETECH

5. The Confirming Party shall keep the Interior of the said premises in a
good condition along with all the fixtures and fittings, subject to normal
wear and tear and acts of God.

6. Neither the Lessee nor the Confirming Part shall make or permit to be
made any alteration or additions in the said premises without the
previous consent in writing of the Lessor. The Confirming Party shall
be entitled to install air conditioners and other electrical fittings and
extension of wiring whenever necessary which will have to be removed
and premises restored in original condition on expiry of the lease or
earlier termination thereof.

7. The Lessee and or the confirming party shall permit the Lessor or their
servants/agents or workmen and any other person so authorized by
the Lessor to enter upon the premises at all reasonable hours during
the day for viewing and inspecting the condition of the said premises
and to effect such repairs that may be necessary.

8. AND the Lessor doth hereby covenant with the Lessee as follows :
a) To pay all charges including municipal and other rates and taxes
levied in respect of the said premises and any increase thereof.

AND the Lessee and the Confirming Party dothe hereby covenant with
the Lessor as follows :
a) Not to do / cause anything in the said premises which may
become a nuisance / danger / annoyance to or in anyway
interfere with the comfort of other residents of the locality and
not to use the said premises for any illegal / immoral / any other
purpose other than as stated above.
 BHARTI TELETECH

AND IT IS FURTHER AGREED AS FOLLOWS :

9. The Lessee may terminate this agreement at any time by giving one
month notice in writing to the Lessor.

IN WITNESS WHEREOF THE LESSOR, LESSEE AND THE CONFIRIMG PARTY

HAVE HEREUNTO SET AND SUBSCRIBED THEIR RESPECTIVE HANDS THE DAY
AND YEAR HERE IN ABOVE WRITTEN.

SIGNED AND DELIVERED BY THE WITHIN NAMED ‘LESSOR’

_______________________

SIGNED AND DELIVERED BY THE WITHIN NAMED ‘LESSEE’

________________________
AUTHORISED SIGNATORY

SIGNED BY THE WITHIN NAME “ CONFIRMING PARTY”

_______________________
 BHARTI TELETECH

UNDERTAKING
(To be executed on Ten Rupees Stamp Paper)

1. I am at present working as ________________ in Bharti Teletech Limited

(hereinafter referred to as ‘The Company’).

2. At my request, the Company has agreed to hire for me residential

accommodation at (give full address)
________________________________________________. I undertake and agree that if
for any reason I cease to be in the employment of the Company, or die, or am
transferred out or for any reason whatsoever, which the Company may deem
fit and proper, then I or my legal heirs shall forthwith (unless permitted by the
Company in writing) vacate the aforesaid accommodation and deliver vacant
possession thereof to the Company.

3. I undertake and agree to indemnify the company in respect of all claims by

the landlord of the said premises including claims on account of water,
electricity and other charges.

4. I shall use the premises only for residential purpose and shall not in any
manner sublet, assign or part with the possession of the aforesaid premises in
part or whole.

5. I shall abide by all terms and conditions of the lease deed dated ______________
regarding hiring of the aforesaid premises executed by the Company.

6. If I fail to comply with any of the aforesaid obligations, then apart form the
other remedies open to the Company, I shall also be liable to pay to the
Company damages, costs and expenses incurred by the company due to such
non- compliances.

7. The terms of this Deed shall be equally binding upon my heirs, executors,
administrators and legal successors.

8. I also further undertake that if for any reason, the Lease Deed entered into by
the Company with the Landlord is terminated / comes to an end, I undertake
to collect a sum of Rs. ________ (Rupees ___________ only) from the Landlord
paid to him being the refund of security deposit with the Landlord. I also
undertake that in the event of any shortfall in the recovery of security deposit,
I shall make good of the same to the Company.

9. I also hereby empower, authorize and give my full consent to recover the
amount equivalent to any shortfall in the recovery of security deposit or any
other dues payable by the landlord to the Company, form my salary, bonus,
gratuity and any other dues which will become due to me or my legal heirs by
the company.

(EXECUTANT) - Signature : ________________

- Date : ________________
 BHARTI TELETECH

WITNESSES
1. Signature : ____________ 2. Signature :
_____________ Name & Address : ___________
Name & Address : _____________
 BHARTI TELETECH

SUB-LEASE AGREEMENT
(Stamp Charges as per the Stamp Act)

This Sub-Lease Agreement is made on this ___ day of _____ between Bharti
Teletech Ltd., a Company incorporated under the Companies Act, 1956,
having its registered office at D-195, Okhla Industrial Area, Phase I, New Delhi
110 020 hereinafter unless otherwise designated called “the Lessee” (which
expression shall unless excluded by or repugnant to the context or meaning
thereof include their successors and assigns) of the One Part

AND
_____________(Name of the employee), _________________ (designation &
department) S/o / D/o ___________ R/o ____________ hereinafter called “the Sub-
Lessee” (which expression shall unless excluded by or repugnant to the
context or meaning thereof be deemed to mean and include his heirs,
executors, administrators and assigns) of the Other Part.

WHEREAS:
The Lessee has taken on lease the property located at
_____________________________________________(Address of the property) from
__________________ (the lessor) as per Lease Agreement dated ______________.

The said property consisting of ___ bed rooms, ___ drawing, ___ dinning,
Kitchen, __ Toilets & Balconies, fitted with modern fittings and fixtures
hereinafter called the (“said premises”).

The Lessee having taken the said premises on lease on behest of the Sub-
Lessee and Sub-Lessee having requested the Lessee to obtain on lease the
said premises on his behest, the said agreement is being executed for giving
on sub-lease the said premises to the Sub-Lessee on the terms and
conditions contained hereinafter.
 BHARTI TELETECH

NOW THIS SUB-LEASE AGREEMENT WITNESSETH AND IT IS HEREBY AGREED

BY AND BETWEEN THE PARTIES AS FOLLOWS:

1. The Lessee hereby agrees to permit the Sub-Lessee the use and
occupation of the said premises for his own and his family’s residence
only. The Lease shall stand automatically terminated in case the Sub-
Lessee is transferred out of Delhi or leaves the employment of Lessee or
the Lease Agreement dated between the Lessor and the Lessee gets
terminated.

2. The effective date of the commencement of the lease shall be

_________ and shall be for a period of ___ months when it shall stand
automatically terminated. The sub-lease can be renewed for a further
period __________ on the consent of the parties hereto on mutually agreed
terms and the Lease Agreement between the Lessor and the Lessee
getting renewed.

3. The Sub-Lessee shall pay to the Lessee in advance a monthly rent of

Rs._________ (Rupees____________________________ ) on or before 7th day of
each month or the amount of rent may be adjusted at the time of
payment of Salary for the month to the Sub-Lessee, which ever is earlier.

4. All charges for electricity and water consumption for the said premises
shall be paid by the Sub-Lessee directly as per the bills received by
him/her.

5. The Sub-Lessee shall keep the Interiors of the said premises in a good
condition along with all the fixtures and fittings in the same condition in
which these have been given to the Sub-Lessee at the time of handing
over the possession, subject to normal wear and tear and acts of God.

6. The Sub-Lessee shall not make or permit to be made any alteration or

additions in the said premises without the previous consent in writing of
the Lessee. The Sub-Lessee shall be entitled to install air conditioners and
other electrical fittings and extension of wiring whenever necessary which
will have to be removed and premises restored in original condition on
expiry of the lease or earlier termination thereof.
 BHARTI TELETECH

7. The Sub-Lessee shall permit the Lessor or their servants / agents or

workmen and any other person so authorized by the Lessor to enter upon
the premises at all reasonable hours during the day for viewing and
inspecting the condition of the said premises and to effect such repairs
that may be necessary.

8. AND the Lessee doth hereby covenant with the Sub-Lessee as follows :

a) To ensure that all charges including Municipal and other rates and
taxes levied in respect of the said premises and any increase thereof
are to be paid by the Lessor.

AND the Sub-Lessee doth hereby covenant with the Lessee as follows :

a) Not to do / cause anything in the said premises which may become a

nuisance / danger / annoyance to or in anyway interfere with the
comfort of other residents of the locality and not to use the said
premises for any illegal / immoral / any other purposes other than as
stated above.

AND IT IS FURTHER AGREED AS FOLLOWS:

9. The Lessee may terminate this agreement at any time by giving one-
month notice in writing to the Sub-Lessee.

IN WITNESS WHEREOF THE LESSEE AND SUB-LESSEE HAVE HEREUNTO SET

AND SUBSCRIBED THEIR RESPECTIVE HANDS THE DAY AND YEAR
HEREINABOVE WRITTEN

SIGNED AND DELIVERED BY THE WITHIN NAMED “SUB-LESSEE”

SIGNED AND DELIVERED BY THE WITHIN NAMED “LESSEE”

(AUTHORISED SIGNATORY)
 BHARTI TELETECH

VEHICLE HIRING SCHEME

Dated:
--------

Mr. --------------------
Bharti Teletech Limited

This is with reference to your request vide application ----------- for availing
the benefit of the Vehicle Hire Scheme. We wish to inform you that your
request has been accepted subject to the following conditions:-
1. That you have been working with the company i.e. Bharti Teletech Ltd. as
------------ since -----------.
2. We understand that the nature and scope of your job responsibilities
entails considerable traveling for official purpose.
3. That you have/ shall arrange at your own cost/expense a car either by hire
/ ownership / leasing for use by you for official purposes, for the effective
performance of your duties.
4. That the company shall pay a fixed hire charges of Rs. ------ (Rupees -----------------
only) per month to the addressee or the owner / lessee of the vehicle, “---------------”
w.e.f---------------- as indicated by you towards official traveling/running associated
with vehicle subject to deduction of Income Tax at source, if any such hire charges
are subject to review at the sole discretion of the company and may also be
withdrawn at any time.
5. That all the rights/liabilities/claims/damages/demands vis-à-vis the said
vehicle including accidents/thefts/damages/insurance, statutory charges
or any other rights/duties shall be your sole responsibility and liability and
company shall not be involved in or liable in any manner whatsoever.
2

6. That subject to clause 4 hereinabove, the paying of such hire charges

shall immediately come to an end from the date of termination of
employer/employee relationship between the Company and the yourself,
subject to renewal if asked for.
7. That you are required to enclose a photocopy of the Registration
Certificate and Insurance cover note of the said vehicle for ready
reference. You shall inform the HR & Administration immediately of theft
or loss/sale any damage as per Vehicle Hiring Scheme.
8. The car rented to the company will NOT be hired to any other party till the
period of validity of said agreement with the company.

For Bharti Teletech Ltd

I hereby declare that I have read the above terms and conditions. I have
received and signed this letter in the spirit of its contents and accept the
applicable instructions for availing the benefit of Vehicle Hiring Scheme.
(Employee’s
signature)
---------------------------
 BHARTI TELETECH

Compensation structure for employees below JE I grade

Coverage

All regular employees on rolls of the company in below JE I grade

Basic Salary:

The basic salary shall be an amount ranging between 30 – 40% of the

individuals total salary. This would be paid through the pay slip on a monthly
basis.

Provident Fund

This is a mandatory deduction as per law. Currently, it is fixed at 12% of

Basic Salary. The employee can opt for a higher % age as voluntary PF
contribution, if desired. However, in any situation, employer’s matching
contribution would be up to a maximum of 12%.

House Rent Allowance (HRA) :

All employees shall be eligible for HRA as mentioned in the table below.

Grade
USI to US II 10% of Basic
S I to SIII 15% of Basic
AT I to AT III 20% of Basic

Conveyance Allowance:

Employees shall be paid conveyance as follows through the salary slip.

Grade Conveyance Allowance (RS) PM

USI to US II 100
S I to SIII 150
AT I 200
AT II 250
AT III 300
 BHARTI TELETECH

Special Allowance :

Special Allowance is not fixed as per grade. It is individual specific amount to

adjust his / her total salary. This would be paid through the pay slip on a
monthly basis.

Medical Reimbursement

Employees who are not covered under ESI scheme shall be paid medical
reimbursement @ 8.33% of basic. The medical reimbursement shall not be
over above the salary but will come out either from the existing components
or from the annual increment

Leave Travel Assistance (LTA)

An employee who is not covered under ESI scheme would have up to one-
month basic salary as LTA for a particular year. The LTA shall not be over
above the salary but will come out either from the existing components or
from the annual increment. The reimbursement would be made against the
production of actual travel documents /supporting towards travel of self &
family (spouse, dependant children & parents).

General:

LTA can be claimed after completion of one year of service with the
company. LTA can be claimed at any time during the calendar year.

LTA can be claimed only after taking a minimum of five days Leave.

Employee can avail up to 80% of entitlement as LTA advance, not

earlier than one month before the commencement of leave. The
advance shall be adjusted against the claim to be submitted within a
month after return from leave. For LTA purpose, the entitlement shall
be calculated for a period from the last LTA claim to the month in
which the next LTA is being claimed

In case, due to exigency of work, employee is not able to proceed on

LTA leave, LTA amount can be paid as a Special Allowance. In such
case, there would not be any need to take leave. However, this amount
paid as special allowance would be fully taxable.
Employee shall be allowed to carry forward his/her LTA amount during
the block of 4 calendar years (as per IT Act). If the employee does not
claim LTA during the specified block, the unclaimed LTA amount shall
be paid to employee as taxable salary on close of the 4 year’s block
period. The block years as per IT Act are 2002–05, 2006 –9, etc
In cases of separation, unclaimed LTA amount shall be paid on a pro-
rata basis as special allowance and would be subjected to tax.
 BHARTI TELETECH

Other Benefits (Not part of the salary)

Gratuity

All employees on the permanent rolls of the company are eligible for gratuity
on completion of 5 year’s continuous services in the company as per rules of
gratuity trust.

The amount of gratuity payable after 5 years continuous services will be 15

days salary for every year of completed service in the company calculated on
the basis of 26 days a month on the last salary drawn immediately
proceeding the date when the Employee becomes entitled to the gratuity. As
per the provisions of “The Payment of Gratuity Act”, the limit for gratuity is
currently Rs. 3.5 Lacs. In case the actual gratuity amount is higher than the
prescribed limit, the company shall pay the higher amount over the
permissible gratuity amount as ex-gratia.

ESI

Employees who are drawing a “salary” (as per the definition of salary under
ESI Act) up to Rs.7500/- per month are covered under ESI Act. The employer’s
contribution will be an amount equivalent to 4.75% of the Salary while
employee’s contribution would be 1.75% of the salary.

Group Personal Accident Insurance

All Employees would be covered under the Group Personal Accident

Insurance scheme.

The maximum amount insured is linked to the salary slabs as follows:

Salary Range Coverage (in Rs. Lacs)

MedicalDeath Total
Coverage
12000 – 19999 2 6 8
7501 – 11999 1.75 5.25 7
Up to 7500 1.25 3.75 5
* Salary means all components which are included in the “salary”
definition under ESI
 BHARTI TELETECH

Mediclaim Insurance Policy

All regular employees who are not covered under ESI Act, would be
entitled to claim reimbursement of the annual premium amount paid for
medical insurance for self up to a maximum coverage limit as per the
table given below :

Grade / Level Maximum coverage limit

(Rs.)
Below JE I 0.50 Lacs The
employee would be reimbursed 50% of the premium paid for a medical
insurance of each family member, subject to a ceiling of Rs. 250 per
annum per member. Family for this policy would be defined as a unit of
maximum three members - Spouse and two children/dependent parents
only.

Exgratia / Bonus

Based on performance of the company, Exgratia / Bonus shall be decided and

shall be disbursed during Diwali time. Bonus shall be paid to all employees
who are covered under Bonus Act. However exgratia payment shall not be
made to an employee who is not on the rolls of the company at the time of
disbursement, in case he / she is not covered under Bonus Act.
 BHARTI TELETECH

Variable Pay Scheme

Objective

This scheme is prepared in line with our philosophy of linking compensation

to both the company’s performance and individual performance
Applicability
All regular employees in the grade of JE I and above, not covered under PLI
scheme.

Guideline for Variable Pay

The ratio of Ffixed pay to Variable Pay is given below.

SN Grade Fixed: Variable

Pay
1 M III & above 80 : 20
2 M I – M II 85 : 15
3 JE I – E II 90 : 10

For Existing Employees:

All non PLI employees, who achieve a performance score of 51 or above out
of 100 (as per existing appraisal system) would have a certain %age taken
out from their increment and added to variable pay till the desired ratio of
fixed: variable salary is attained.

For New Employees:

The grade wise variable pay shall be built in their Compensation structure

Scheme

• The pay out on account of the Variable Pay will be dependent upon
the company’s as well as individual’s performance as per the
following guidelines.

• The company would decide at the beginning of each financial year,

the performance parameters which will determine the payment of
variable pay

For Financial year 2004-05

1. Company Performance, 10% weightage will be given to Cash

profit of the company. The different level of achievement is
given below:
( Table 1)
Parameter Achievement levels % Achievement on Company’s
performance
Cash Profit More than 110% 125%
budget
Upto 110% of budget 110 %
 BHARTI TELETECH
Budgeted 100%
More than 90% of 90%
Budget
70% -90 % of budget 75%

1 Individual Performance 90% weightage will be given to individual

performance as per the existing Performance Management System
(PMS). The different level of achievement is given below:
( Table 2)
Parameter Achievement levels % Achievement on Company’s
performance
Performanc 91-100 125%
e score as 81-90 110 %
per existing
PMS 71-80 100%
61-70 90%
51-60 75%

Process
1. HR Department shall calculate individual performance score from
the existing Performance Management System (PMS) and company
performance from the cash profit figure, approved by the corporate
office.
2. Based on company’s & Individual performance, the “variable pay”
earned would be calculated and shall be communicated to the
employee in his / her increment letter.

Sample Calculation.
Parameter Amount in Rs. PA
Current Fixed Salary (2003-04) 2,00,000/-
Variable Pay for 2004-05 5,000/
Variable Pay on Account of Company Performance (A)

Variable Pay Kitty on account of company 500/- (10% of Rs. 5000/-)

performance
Cash Profit as per Corporate Office Rs. 110 Mn (81%
achievement)
Variable Pay achievement as per table – I 75%
Variable Pay Payout 375/- (75% of Rs. 500/-)
Variable Pay on Account of Individual Performance (B)

Variable Pay Kitty on account of company Rs. 4500/- (90% of Rs.

performance 5,000/-)
Individual Performance Score as per existing 65
PMS
Variable Pay achievement as per table – II 90%
Variable Pay Payout 4050/- (90% of Rs. 4500/-)
 BHARTI TELETECH
Total Pay out

Variable Pay out – Company performance (A) Rs. 375/-

Variable Pay out – Individual Performance (B) Rs. 4050
Total Pay out - Company +Individual Rs. 4425/-
Performance (A+B)
 BHARTI TELETECH

DATA ANALYSIS

1. Challenging Jobs at Bharti Teletech Limited

All the employees in the middle level management think that their jobs

is challenging.

2 Equality and openness with reference to works

The employees feel that there is 100% equality and openness with

references to work

3 Reward systems for best employee

Here again, every employee accept that there is a reward system in

the organization.

4. Support of technologies Changes

Every employee in the organization does support the technological

change.

5. Present quality of work life

 BHARTI TELETECH

• Employees are 100% satisfied at their present quality of work

life. People in the organizations satisfied with present quality of

work life because of the working environment and flexibility. But

it can be improved more because of salary.

• Every employee in the organization is satisfied with the present

quality of their life. But they are not totally satisfied with the

present working

Conditions/salary paid by the company and the individual growth in

the company.

• An employee feels that there should be flexibility of timing

because their office is too far from the main city and they

depend on the company bus services. At the same time

employees feel the situation of the office at outskirts of Delhi is

inconvenient. Although the company provides bus as a form of

transportation's convenience but traveling is tiresome.

• So far the salary is concern most people in the middle level

management feels that it is good. Rest people it is average good

because they are comparing the other organizations and they

feel they are doing more work as compared to the salary. The

people in the middle level management feel that the salary paid
 BHARTI TELETECH
by the company is not quiet satisfaction of compared to other

organizations.

• Employees are also comparing the benefits with some other

organizations benefits; they are working, the children's education

allowance and the vocational allowance and special allowance

for the 'A' class city.

• Employees feels that they are not totally satisfied with the

opportunity for individual career growth because they are getting

training on the job only and they are not sending out side the

organizations for the specific

• training's. Mostly in this organizations) they are giving

emphasize in organization goal rather than individual

developments.

• Every employee are finding their job as challenging according to

data collected they have a liberty to work under specific

objectives assigned by Head of Dept. for the particular work only

assign individual are responsible for the given task, they have

full freedom to take action for the respective work.

• They set their own target and try to achieve the target within the

given time, they feel also challenging because they set their own

daily target and try to achieve the target. they feels

 BHARTI TELETECH
challenging because of the motivation given by the organization

to achieve the target.

• When we questioned to Ms Shalini Rath HR about the job

challenging, she told their job is directly related to organization

job and of they give maximum output. So the entire employee

feels that their job is challenging. There is no suggestions of

private life and the official life actions to most employees they

feel that there should be cons ritualism in the organization i.e.

there should be separate of private life and official life.

• With reference to the source of equality and openness in nature

of work, the collected data reveal that employees are totally

satisfied because the interaction and communication process is

smooth. There is no hierarchical

flow of communication. So they feel that they hence a liberality, to

approach of the organization.

• For motivating the employees there is reward and self appraisal

system. if they give maximum output they know that their efforts

will be rewarded, so it will be helpful to extract maximum from

an individual and it will be helpful in improving the working

condition the organization and they have self appraisal and

 BHARTI TELETECH
performance appraisal by HRD person. In the performance

appraisal the HRD gives the feedback to the employees how they

improve their working stage and the nature towards their work.

• They support the technological change because they want to

keep themselves pace with the competitive world.

 BHARTI TELETECH

RECOMMENDATIONS:

 Score cards allotted by the HOD should be transparent.

 Performance judgments should be based on clearly defined KRA’s.

 360o Appraisal should be implemented instead of the existing 180o

Appraisal System.

 Additional work should be given due weight age as they consume a

substantial portion of their work time.
 BHARTI TELETECH

 Flexi timings should be introduced in certain department. E.g.

Exports department due to nature of work.

 In order to avoid monotony, Job Rotation should be introduced.

 When a person/ head of department goes on leave a notice should

be circulated in that particular department and department, which
deals directly with that department so as to ensure the proper flow
of information. The notice should also say who will be the person
acting in authority on behalf of the absentee. This would help
people to get in touch with the right person and there would be no
delay in work.

 Such a notice would also increase the accountability of a person

who will be in charge in the absence of head of department.

 The review of the productivity of every employee should be done on

the regular basis. This would help in identifying the employee who
are not performing in spite of their long years of association with
the organization

 There should be transparency between the working of the HR

departments and the other departments. This could be
implemented by organizing the meeting between the head of
department of different department on a weekly basis. A similar
forum can be organized between the employees and the HR

Department on the monthly basis. This would help in understanding

the role of HR and limitations, which would improve relationships
between other department and HR.

 There should be online evaluation test particular to the need of

each department to evaluate the employee performance on regular
basis. It could be implemented at the Delhi Head Office and the
 BHARTI TELETECH
same could be done for the other regional offices. This will help the
employees to upgrade their knowledge and keep them well
informed about the market scenario and also this would help them
in their performance appraisal
 BHARTI TELETECH

CONCLUSIONS

During the course of o project we interacted with the each and every individual on a
personal basis working in the organization .On the basis of our research and Performa
filled up by these employees. We got certain insights about the level of satisfaction
/dissatisfaction of the people who have been working in this organization over a period of
time .It was also noticed that employees did not understand the difference and the need
for the Performance Management System in relation to Key Result Areas (KRA’s)

 80% employees were satisfied with the Performance Management System. Rest
(20%) employees were not satisfied.
 Incentives through profits should be given. E.g. If legal & Secretarial department
wins a legal case which provide profits, incentives should be given to such employees
who are a part that case.
 In the Performance management System, if 100% performance is achieved; 80%
increment is provided. Such a distinction should not be there.
 Performance should be measured on the quality of work rather than the quantity of
work.
 Training should be technical and job oriented rather than behavior and attitudinal
skills.
 Promotion should be performance oriented and not tenure based..
 Another finding was that since there is no clearly define delegation of authority
therefore in the absence of the head of department (HOD) the decision-making was
delayed which could hamper the working of that department in particular.
 Since there was an absence of delegation of authority hence people could not held
accountable for things they did, as they would say that this is not the part of their job.
 It was also been found that even though the company is recruiting people for various
departments, there are certain infrastructure shortcomings like insufficient space to
accommodate new employees.
 There exists a general level of dissatisfaction between different department and HR.
These departments do not understand the importance of the role played by the HR
department.
BHARTI TELETECH
 BHARTI TELETECH

BIBLIOGRAPHY

1. Human Resource Development – by U.B. Singh

2. Principles of Management - by Koontz O’ Donel.

3. Principles and practice of Management –by C.B. Gupta.

4. Principle and practice of Management –by L. M. Prasad.

5. Economic Times, Business World

 WEBSITES:
www.bhartiteletech.net
BHARTI TELETECH
 BHARTI TELETECH

QUESTIONNAIRE TO EMPLOYEE/WORKER

a) Name of the respondent.

b) Designation :
c) Date of joining :
d) Token no :
e) Department :

 a) Are you a workman / employee in the following category?

Permanent /
Temporary/ Casual.

b) Are you getting wages in piece rate / Time rate / any other
method?
c) Is wages fixed by wage Board / Collective bargaining / any other
method?
d) Are you feeling any work load in your job? Yes/No.
e) If yes, do you need extra hands? Yes/No

 a) Is there any training facility for you? Yes/No

b b) If yes, is it on the job training loft the job training / off the job
training?
c Yes/No.
d
c) Do you feel that training is inevitable for you? Yes /No

 a) Are you satisfied with your job? Yes /No.

b) Is the job appraised by your superior authority? Yes/No.

 a) Are you getting promotion? Yes/No.

e
f b) If yes, in which basis you have promoted? Efficiency /
Seniority / The
 BHARTI TELETECH
g both.

 Are you getting any motivational facilities? Financial / Non-financial /

The
h both.

 What types of facilities the company is extending for you?

Crèche Yes/No
Canteen Yes/No
Recreation Yes/No
Medical Yes/No
Conveyance Yes/No
Free education for children Yes/No

 What are the reward systems adopted by the company?

 Are you satisfied with these reward system? Pl. Specify

 Whether the organization provides employment opportunity to the

family members in case of death of the worker / employee.