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Atul Ltd | Annual Report 2010-11
The terms and conditions of the reappointment of the Managing Director are set out in the draft agreement, which is
placed before the meeting. The material terms of the draft agreement are as under:
1. Mr S A Lalbhai is reappointed as Managing Director of the Company. As Managing Director he shall work closely with
the Chairman & Managing Director to assist him in matters related to overall policy making, corporate governance and
review of operational performance and take up special assignments under the overall co-ordination and guidance of
the Chairman & Managing Director.
2. Period of office of the Managing Director is five years with effect from December 15, 2011.
3. Remuneration payable to the Managing Director
(a) Basic Salary of
`
2,63,924/- (Rupees two lacs sixty three thousand nine hundred twenty four only) per month. The
Basic Salary may be increased from time to time by the Remuneration Committee at its absolute discretion within
the contractual period of 5 years, however, the maximum Basic Salary payable shall not exceed
`
7,00,000/-
(Rupees seven lacs only) per month.
(b) Perquisites
In addition to salary, the following perquisites shall be allowed to the Managing Director:
CATEGORY – “A”
i) Housing:
The Company shall provide furnished accommodation to the Managing Director. If the Managing Director is having
his own accommodation, the Company shall pay house rent allowance at the rate of 10%, 20% or 30% of Basic Salary
for Category C, B and A type city respectively as the case may be.
The Company shall provide equipments and appliances, furniture, fixtures and furnishing at the residence of the
Managing Director at the entire cost of the Company which shall not exceed
`
5 lacs.
The Company shall reimburse the expenses of gas, electricity, water, etc. The expenses on these, valued in accordance
with the Income-tax Rules, shall not exceed 10% of the salary.
ii) Medical Reimbursement:
Medical expenses actually incurred for self and family shall be reimbursed by the Company.
iii) Leave Travel Concession:
The Company shall provide leave travel fare for the Managing Director and his family once in a year as per its policy.
iv) Personal Accident Insurance:
The Company shall pay Personal Accident Insurance upto
`
5,000/- per annum.
v) Club fees:
The Company shall reimburse annual fees for a maximum of two clubs.
CATEGORY – “B”
i) The Company shall contribute towards Provident Fund | Superannuation Fund | Annuity Fund provided that such
contributions either singly or put together shall not exceed the tax free limit prescribed under the Income-tax Act.
ii) The Company shall pay Gratuity as per its policy. The period worked under this contract will be in continuum of the
service already considered under the policy.
iii) Leave on full pay and allowances, as per rules of the Company, but not more than one month’s leave for every eleven
months of service. However, the leave accumulated but not availed of will be allowed to be encashed at the end of
the term as per its policy.
The perquisites under this Category shall not be included in the computation of ceiling on remuneration.
CATEGORY – “C”
i) The Company shall provide a car with driver at the entire cost of the Company for use on business of the Company.
Use of car for personal purposes shall be recovered by the Company.