Atul Ltd 2020-21

84 Atul Ltd | Annual Report 2020-21 c) Medical reimbursement: the Company will reimburse medical expenses for self and family incurred as per its policy. d) Leave travel assistance: the Company will provide leave travel assistance for self and family once in a year as per its policy. e) Group accident insurance: the Company will provide group accident insurance of sum assured up to ` 25 cr. f) Car: the Company will provide a car at its entire cost as per its policy. g) Car driver wages | fuel | maintenance: the Companywill reimburse for car driver wages, fuel andmaintenance as per its policy. h) Communication devices: the Company will provide a landline telephone at residence and mobile telephone as per its policy. 3) Retirals a) The Company will contribute towards 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. b) The Company will pay gratuity as per its policy. The period worked under this contract will be in continuum of the service already considered under the policy. c) 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. 4) Commission T he Company will pay commission at the rate of 0.50% of net profits of the Company provided that the commission will not exceed 30 months’ basic salary. When payable for the part of the year, the commission will be payable on pro-rata basis. III. Mr Lalbhai 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. IV. 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 and subject further 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. Provided, however, that in the event of absence or inadequacy of profit, Mr Lalbhai will be paid minimum remuneration subject to Schedule V of the Companies Act, 2013. V. A rateable proportion of the aforesaid remuneration will be payable by the Company in the event of cessation of office during any financial year. VI Mr Lalbhai will be entitled to reimbursement of expenses incurred by him in connection with the business of the Company. VII. The Directors are at liberty to appoint more than one Managing Director. VIII A notice period of six months will be applicable from either side. IX. Mr Lalbhai will be entitled to compensation in accordance with Section 202 of the Companies Act, 2013 in the event of termination of office. The Board considers that his association will be of immense benefit to the Company. Accordingly, the Board recommends the resolution in item number 4 in the Notice in relation to reappointment of Mr Lalbhai as a Managing Director for five years for the approval by the Members. Memorandum of interest The nature of the concern or interest of Mr Lalbhai, Managing Director, is that the above resolution pertains to his agreement with the Company and he will be receiving the remuneration as stated therein, if approved. None of the other Directors or Key Managerial Personnel of the Company and their relatives are concerned or interested, financially or otherwise, in the said resolution.