Corporate Overview Statutory Reports Financial Statements 99 The terms and conditions of the reappointment of Mr Gopi Kannan are set out in the draft agreement, which is placed before the AGM. The material terms of the draft agreement are as under: a) Responsibilities: Mr Gopi Kannan will have responsibility for the overall supervision of Assurance, Finance, Information Technology and Legal functions. In addition, he will also be responsible for any other duties as may be assigned to him by the Chairman and Managing Director or the Board. b) Remuneration: During tenure, he will be paid remuneration as below: i) Basic salary of ` 5,42,239 (Rupees five lakhs forty two thousand two hundred and thirty nine only) per month. The basic salary may be increased from time to time by the Nomination and Remuneration Committee at its absolute discretion within his contractual period of three years; however, the maximum basic salary payable will not exceed ` 9,00,000 (Rupees nine lakhs only) per month. ii) Allowances | Benefits of ` 7,19,423 (Rupees seven lakhs nineteen thousand four hundred and twenty three only) per month which may be revised from time to time up to ` 11,00,000 (Rupees eleven lakhs only) per month. iii) Variable pay as per the policy of the Company. iv) Perquisites • Housing: the Company will provide residential accommodation with water and electricity or pay house rent allowance as per its policy. • Furnishing: the Company will provide furniture and fixtures as per its policy. • Medical reimbursement: the Company will reimburse medical expenses incurred as per its policy. • Leave travel assistance: the Company will provide leave travel assistance for self and family once in a year as per its policy. • Personal accident insurance | Medical insurance: the Company will provide personal accident insurance and medical insurance as per its policy. • Car: the Company will provide a car at its entire cost as per its policy. • Car driver wages | fuel | maintenance: the Companywill reimburse for car driver wages, fuel andmaintenance as per its policy. • Communication devices: the Company will provide communication devices as per its policy. v) Retirals • The Company will contribute towards the provident fund and superannuation fund provided that such contributions either singly or put together do not exceed the limit prescribed under Section 36(I)(iv) of Income Tax Act, 1961, read with Rule 87 of Income Tax Rules, 1962. • The Company will pay gratuity as per its policy. The period worked under this contract will be in the continuum of the service already considered under the policy. • The Company will grant full pay and allowances leaves, not exceeding one month for every 11 months of service. Unavailed accumulated leaves lying unencashed may also be carried forward to the next tenure, if any. c) Mr Gopi Kannan will not be entitled to sitting fees for attending meetings of the Board and | or Committees thereof. He will, however, be reimbursed for the actual travelling, lodging, boarding and out-of-pocket expenses incurred by him for attending meetings of the Board or Committees thereof. d) The above remuneration and any alteration thereof from time to time, is subject to the overall limit of 5% of the annual net profit of the Company. Furthermore, it is subject to the overall limit of 10% of the annual net profit of the Company as computed under the applicable provisions of the Companies Act, 2013. However, in the event of absence or inadequacy of profit, Mr Gopi Kannan will be paid minimum remuneration, subject to Schedule V of the Companies Act, 2013. e) Mr Gopi Kannan will be entitled to reimbursement of expenses incurred by him in connection with the business of the Company.
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