Procedure for Scheme Car

4.4     Procedure for Scheme Car

a          Entitlement on promotion

HRD will inform the Administration and Finance Department  of the entitlement car. Thereafter the Administration/Finance Department will initiate the “A” Form and process the purchase.

b        Entitlement on joining

HRD will inform the relevant Finance/Administration Department of the grade, car entitlement and preferred colour choices of the new appointee. Thereafter the Administration/Finance Departments will initiate the “A” Form and process the purchase.

c        Replacement of existing scheme car

At least two months prior to lease expiry, Finance Department   will initiate the replacement process by informing the concerned managers. Based on this letter the concerned managers will take necessary action to ensure replacement.

d        Replacement of stolen scheme car

The manager must inform the HRD, Finance and Administration Department  of the car theft in addition to the Insurance Section. If the car has not been found in a  reasonable  amount  of  time  i.e.  in  approximately  2/3  weeks,  the  manager should send an application for a new car to the HR Department for new car. On receipt  of  the  application  request  should  be  sent  to  the  Administration Department (with a copy to the Finance Department) who will arrange for a new car to be leased.

In case the manager chooses to continue the current lease, the Company will purchase a car comparable, as far as possible, with his current scheme car i.e. condition, mileage etc. The price of the comparable car will translate into an expense/benefit  to the Company (when net off against the insurance proceeds). The lease Agreement may be modified to substitute the new car for the stolen one.

In all the above cases, a car must be provided within 2/3 weeks, which is considered  reasonable  waiting  time  for  the  new  car.  In  case  the  same  is  not possible from the factory (at ex-factory price) then the car must be purchased from a dealer at the market price. It is the Administration Manager’s responsibility to ensure that three quotations are obtained.  These quotations are to be kept on record for audit purposes.

Cars provided to managers must include all features which are considered standard for the entitled model. In order to save costs, the Administration manager may choose to

buy a car without an air conditioner radio/cassette player etc. and subsequently get them installed. However this decision is at the discretion of the concerned Functional Head depending on the differential between the market and the factory price.