HRD Policies

HR INITIATIVES

Work environment - Factory / Office premises

An employee assigned to work in an office / factory, should be aware of the following:-

Timings of work / shift timings
Wear and display the ID-cum-attendance card while on duty
Wear uniform and shoes provided by the company while on duty
Conduct during working hours
Not to bring prohibited articles as notified from time to time
Obtain movement pass to leave the workplace on official work or for leaving the work
premises early on personal work
Obtain prior permission for availing leave
To be aware of safety precautions and fire safety measures
To meet visitors only in the Security Office
Strictly adhere to the breakfast / tea / lunch / dinner timings as notified
Complete the tasks assigned for the day
Co-ordinate with other departments for successful completion of the work assigned
Maintain cordial relation with others and courtesy to female employees
Not to indulge in idle talk, spreading false information or rumours
Intimate current residential address for timely communication and benefits
Change in marital status, etc.
Any other announcement regarding work culture made by Management from time to time
Being aware of the things to be observed and followed will ensure trouble-free working and meeting of
targets set for the individual / organization.

Training & Development

SIL has detailed plans to provide training from the induction levels to updating the skills from time to
time. This helps in engineering the technology for manufacture of company products, improving
efficiency and quality.

Some of the steps taken in this direction are as under:-

Apprenticeship training for skilled workers and engineers. This helps in imparting company
specific training and ultimately helps in recruitment of the required skills.
Induction training to new entrants to acclimatize themselves with the company environment.
Inhouse company programmes designed to update the skills, develop supervisory and
leadership qualities and preparing potential candidates for general management levels.
Deputation to training programmes / workshops which aim at equipping personnel for
specialist jobs.
Advanced specialized training with reputed institutions in India and abroad for top
management positions.
Every employee / officer of the company is required to make use of the training facilities provided for
self-development, imparting knowledge to co-employees and meeting the tasks set for the
organization.

Salary Remittances through Bank

To ensure safe and faster remittances, the salary and other payments due to employees are remitted
to the individual accounts of the employee in the Bank of choice. Assistance of Banks has also been
obtained to establish ATMs in the factory divisions to help the employees draw money at short notice.

The system ensures transparency and faster transactions.

RECRUITMENT, PROMOTION & RECOGNITION OF ACHIEVEMENTS

Recruitment Rules

Recruitments in SIL are based on requirements for maintaining different operations of the company.
The requirements in turn are assessed by industrial engineering department / designated agency
keeping in view the operational requirements and succession planning. The requirements are also
fine tuned based on expansion / diversification programmes of the company. In normal circumstances,
groups / grades are identified for induction and when the need arises the recruitments are also done
on contract basis or for training for a fixed period before being considered for regularization.

As per the existing policy, the recruitment levels are as under:-

Category Qualification / Wage Group / Grade

Unskilled Upto SSLC
Semi-skilled ITI / Graduate Trainee
Skilled Diploma Trainee
Executive/Officers Engg. Degree / Professional qualification on Contract / Trainee

Recruitment to other groups / grades are made based on specific requirements.

Recruitments are normally made through references, advertisements, consulting agencies and from
local areas/Land loosers to meet statutory requirements of the state governments.Medical
examination will be done prior to appointment or while in service. False information will call for
termination of service.

After recruitment, the candidates will be on probation as per company policy and confirmation in the
grade or group will be based on satisfactory performance during the probationary period.

Company employees are also provided opportunities in case of requirements to apply for advertised
posts and all other things being equal, can be selected for the notified posts.

Emoluments will be with reference to the group / grade to which appointments are made with
provision for protection of pay in case the candidates are drawing higher emoluments in the
organization from which they resign to join SIL.

The actual selection of any candidate into SIL service is based on the data provided by him regarding
qualification, experience, caste, etc., and performance in test / interview. If at a subsequent date, it is
found that the candidate had given false information at the time of employment, the same would call
for strict disciplinary action and even termination from service.

Promotion / Career Development Schemes

i) Promotion Benefits

SIL being a Public Limited Company opportunities exist for its employees to move to higher
management levels based on consistent good performance and capability to shoulder general
management positions.

Employees in SIL have opportunities to move to higher groups / grades which will bring in monetary
benefits, additional responsibilities, status, perquisites, etc.

The promotions in SIL are based on satisfactory completion of no. of years of service prescribed in
the lower wage group / grade and thereafter based on requirements / selections.
EMPLOYEE SERVICE RECORD (ESR) / PERFORMANCE APPRAISAL (KPA / EPA)

Employee Service Record (ESR)

The ESR is an important document which is generated by the designated officer for a
calendar year to indicate the performance of the employee with reference to various
parameters mentioned in the document.
This serves as a guide for communicating to the employee the shortcomings if any, for the
given period. Further, the reports for a period of three years are also used for determining the
eligibility of the employee for being considered for increments/Promotions.
ESR also serve as a guide for determining awards, medals, etc.

Key Performance Area / (KPA) / Executive Performance Appraisal (EPA)

For officers, EPAs are generated for the financial year based on the Key Performance Areas
(KPAs). The KPAs are determined at the beginning of the year between the officer and the
Reporting authority to enable the officer to achieve the target set in the KPA for the financial
year.
At the end of the financial year, the performance of the officer is reflected in the EPAs by the
officer / Reporting Officer / Reviewing Officer and the Accepting Authority.
The EPAs are used for conveying adverse ratings if any, to enable the officer to improve his
performance, considering him for promotion to higher grades and for determining the quantum
of profit linked incentive to be paid.

Job Designations / Identification of employees

An employee or an officer is given a job designation depending upon the job and the group /
grade in which he is placed and this will vary from time to time depending upon the change in
their jobs and groups / grades due to promotion / posting, etc.
For the purposes of preparation of Payroll, the level of the employee is established by English
alphabets / numbers depending upon the group / grade. These are called level codes and
can be seen in the salary slips.
An employee is assigned a permanent staff number at the time of entry into service will
remain unchanged throughout the service for easy identification.
Every employee is provided with a badge to be worn while on duty and recording attendance.
This is a critical document to be carried while on company duty for easy identification.

Recognition of Achievements

Reward Schemes
In recognition of the making significant contributions made by employees, the following reward
schemes are operated :-
Quality Awards
Employees who have contributed for improvement of the quality are honoured during the
quality week celebrated every year.
Merit Rewards
The importance of individual contributions in achieving higher levels of efficiency, cost
reduction and innovations in the operations is duly recognized by identifying employees who
have made outstanding contributions during a given period. The scheme provides for notifying
the best outstanding employee of the company and outstanding employees for the divisions.
The recognized employees are given increment / cash awards.

Suggestion Scheme
SIL recognizes the importance of suggestions of employees in improving the efficiency of the
organization. For this purpose, a scheme has been notified under which the employees can
make suggestions which if accepted will be suitably rewarded.
WAGE & SALARY, TA & DA, LTC / LTA
Pay & Allowances

The employees of SIL are paid salary on a monthly basis. There will be salary cuts where there is
shortage in attendance hours or if the absence is without paid leave.

The components of salary are Basic Pay, Dearness Allowance (DA), House Rent Allowance
(HRA)and other allowances.

Canteen facility / Lunch Subsidy / Allowance

Arrangements are made in factory divisions for providing lunch, etc., at subsidized rates which the
employees can avail.

TA / DA RULES

Employees are deputed to different places for official work. To regulate the expenditure on account of
travel, stay, food, etc., the TA / DA rules have been notified inter-alia covering the following :-

Entitlements for travel, transport of personal effects and journey DA to personnel joining
company service on initial appointment.
Entitlements of employees while on outstation duty
Entitlements on transfer.
The TA DA Rules are enclosed.

Journeys on Transfers

On Transfer, an employee and the members of his family as defined in the rules will, subject to the
approval of the Controlling Officer, be eligible for payment of :

(a) Travel expenses ;

(b) DA for the journey time ;
(c) Lump-sum Transfer Grant ;
(d) Disturbance Allowance ; and
(e) Freight charges for the transportation of personal effects.

TA / DA for fresh appointments

Travelling expenses including Daily Allowance for journey time for self and family members and cost
of transportation of personal effects is reimbursed.

Joining Time on Transfer

Not more than one day is allowed to an employee to join a new post when appointment to such post
does not necessarily involve a change of residence from one station to another. A holiday counts as a
day for the purpose of this rule.

If the transfer of an employee involves a transfer from one station to another, six days are allowed for
preparation and in addition, a period to cover the actual journey.

EMPLOYEE WELFARE

Leave Entitlement and Utilization

The leave entitlements are as under :-

Type of Leave Workers/Executives

Casual Leave 12 days / year
Sick Leave 12 days / year
Earned Leave 12 days/ year/as per provisions of Factories Act (18 days / year

The leave credit is on a calendar year basis.

Leave can be availed with prior permission in the prescribed form.

Female employees are entitled to Maternity Leave as per rules which is presently 12 weeks for
delivery, limited to 03 deliveries during their period of service with the company.

Employees are also eligible for extra-ordinary leave for employment injury, subject to terms and
conditions.

Medical Benefits

The Company has initiated policy for coverage of its employees/spouse (who are not covered under
ESI benefits) to Medical benefits for hospitalization treatments with a policy taken from Insurance
Company.

Uniform & Footwear

Uniforms with stitching charges and footwear are provided to Security personnel/ Drivers
The scale of issue will be 02 sets of uniforms per year and 01 pair of shoes and socks.

SERVICE CONDITIONS & ALLIED MATTERS

Conditions of Service

If an employee is in workmen category, then he is covered by the provisions of the Certified

Standing Orders of the company. Executives are covered by the Service / CDA Rules.
Copies of the Certified Standing Orders and approved Service Rules/CDA Rules are in the file.
The Standing Orders give the details of the working conditions during service in SIL,
guidelines to employees for adhering to rules & regulations, leave benefits, disciplinary action
procedures for misconducts, etc.
The Service Rules gives details of service conditions for those not covered by the Standing
Orders provisions.
The CDA Rules is a compendium of guidelines for ensuring discipline and actions required to
be taken in cases of misconducts.
Every employee or an officer of the company should be fully conversant with the Standing
Orders / Service and CDA Rules to ensure trouble free working while in service.
To carry out the functions, the powers are delegated by the Board of Directors, who in turn
delegate powers to the top management and other functionaries of the company. There are
limitations on powers to be exercised and financial concurrence where required is a
prerequisite for exercising the powers involving financial implications.
Adherence to rules and regulations is advisable as violations call for disciplinary action which
may affect the career prospects of the individual.
Apart from the general guidelines given in Standing Orders / Service and CDA Rules,
employees are required to desist from leaking out sensitive information pertaining to the
company to its competitors or undesirable persons / agencies.
When in doubt, employees / officers are required to refer to the notified rules / manuals or
seek advise from higher authorities for proper understanding and implementation of the
company policies.
Employees are required to constantly update their skills for ensuring high levels of
performance and quality output. This will help the company for achieving cost control, higher
productivity and profitability besides sharing the gains with the employees in the form of higher
incentives and benefits.
 To sum up, it is necessary that every employee of the company is aware of the terms and
conditions of service for smooth functioning of the company operations.

Transfer / Redeployment of personnel

Every employee of the company is required to serve anywhere in India as per condition of
employment and requirement of the company.
Periodical transfers are effected based on requirements and vigilance guidelines.
On transfer, employees are eligible for TA / DA benefits like fare reimbursement, transfer
grant, disturbance allowance, cost involved in transportation of personal effects, joining time,
etc.

Exerting outside influence

Due to operational reasons decisions are made by Management for positioning the right kind of
manpower to man important and critical positions in the company. It is seen sometimes that
employees approach external and political figures to bring pressure for favourable postings, transfers,
etc. Such acts are prohibited under company rules as there is a grievance redressal mechanism
within the company. Employees are advised to adopt the existing procedures and not bring influence
from external agencies.

Involvement in activities of other organizations

It is seen that employees take part in certain kinds of activities outside the organization to become
heads of certain bodies, societies, etc. As per the rules of the company, before contesting or getting
nominated to such posts, it is necessary to obtain approval of the Management as otherwise it will
become an act of indiscipline. Employees are therefore advised to follow company rules before
indulging in such activities.

Political activities

Keeping in view the status of SIL viz., being a Public Limited Company the employees of SIL are
prohibiting from indulging in any political activities like canvassing, contesting for elections, etc.

Interaction with Press and Electronic Media

As per company policy, only Chairman, Managing Director and Directors are authorized to interact
with the Press or Electronic Media. All other officers / employees are therefore advised to refrain from
revealing any information about the company either to the Press or Electronic Media, except for
product promotion.

Grievance Redressal

A mechanism available to the employees and officers to represent to higher authorities their
grievances regarding denial of service benefits like pay and allowances, promotions, etc.
The procedure has three stages to ensure transparency and involvement of higher officers in
case of any difficulty faced by lower level officers to redress the grievances.
The procedure enables satisfaction to the personnel in seeking grievance redressal from the
authorities concerned in cases where they feel that the benefits due to them have not been
granted.

Safety & Protective Appliances

Safety and Protective appliances are provided as per Factories Act provisions for ensuring
safety during work.
Employees are required to wear the appliances for ensuring safety
Employees are required to observe safety precautions as notified and not indulge in unsafe
working.
 Any threat to safety of self, co-employee or to machines are to be immediately brought to the
notice of concerned for remedial action.
Fire Fighting services are available in factories. In case of fire, the Fire Services should be
summoned immediately.
Periodical mock exercises are conducted by the Govt authorities like Factory Inspectorate,
Police to train employees.
Copy of the Safety Procedures are placed in the file.

Telephone facility

For officers occupying key positions, telephone facility is provided at the office / residence and
mobile phones.
The policy envisages provision of telephone / mobile phone facility arranged by the company.
Employees / officers are required to know the telephone numbers so that they are able to
contact the superior officer in case of necessity.
The matter is decided by competent authority.

Resignation / Cessation of Employment

After joining the services of SIL, an employee is required to obtain permission for ceasing to be in
employment on account of resignation, etc. In cases where an employee wishes to resign, he is
required to clear all the dues, serve the required notice period / contractual obligations, etc. Further,
as per rules, disciplinary action under progress can also be continued even after cessation of
employment. Employees are therefore required to be aware of the provisions of rules before seeking
approvals for resignation.

SERVICE AND SEPARATION BENEFITS

Statutory Benefits

The company is covered by the provisions of the following Acts:-

Provident Fund
Profit Sharing Bonus
Maternity Benefit
Employment Injury
Gratuity
etc

Provident Fund

All employees are covered under Provident Fund Rules from the first day of their
employment. They are required to contribute 12% of pay + DA. The companys contribution is
also 12%.
Out of company contribution, 8.33% on Rs 6500/- is remitted towards employee pension
scheme. The balance amount is in the account of the employee.
The employee at periodical intervals can avail refundable / non-refundable loan as per rules
for meeting expenditure in connection with social obligations / medical / education /
construction of house.
Employees are provided annual statement of accounts to update their knowledge about their
accumulations.
The PF rules also provide for group insurance scheme which provides for payment to family
in the case of unfortunate death of the employee.

Profit Sharing Bonus

 Payment of Bonus is made after finalization of accounts and as per provisions of Payment of
Bonus Act.
For those employees not covered by the provisions of Bonus Act, ad hoc amount is paid.

Maternity benefit

The company follows the existing rules prescribed under the Act.
Female employees are eligible for 12 weeks leave for delivery and other benefits prescribed
under the Act limited to 02 deliveries.

Employment Injury

In case of any injury during employment, employees are eligible for monetary compensation, medical
treatment as well as leave in case of necessity and required policy is obtained for this purpose.
In case of employees covered by ESI, the benefits will be extended by the ESIC.

Gratuity

Employees are entitled for Gratuity benefits as provided under the Act viz., 15 days pay + DA
for every completed year of service subject to maximum of Rs 3.50 lakhs and entitled to
receive the same on cessation of employment in SIL provided they have rendered a minimum
of 05 years continuous service.
Gratuity is not payable in case the employee is involved in acts resulting in loss of company
property or moral turpitude.
Superannuation / Retirements

As per existing rules, the age at which an employee / officer superannuates from the services
of the company is 60 years.

Death Benefits to Family

It is important for the employee and the family to know about the benefits available to the family in
case of an unfortunate death during service. It is in this context the employee / officer is being
informed about the benefits available and precautions to be taken while in service for ensuring smooth
transfer of benefits to the nominee.

Update and modify nominations from time to time during service to ensure benefits being
available to the desired nominee. This is to avoid litigation among the claimants after the
death of the employee.
Gratuity calculated at 15 days salary for every completed year of service.
Balance amount available in the PF account on account of contributions made by the
employee and the company.
Encashment of unutilized EL.
Pension amount as per the scheme of PF organization.

Group Insurance Scheme amounts under the PF scheme as notified from time to time.

HOLIDAYS AND DAYS OF IMPORTANCE

Holidays

In accordance with the statutory provisions, company declares 9 days in a calendar year as national /
festival holidays. These holidays will generally be for the following:-

National Holidays
 Republic Day
Independence Day
Gandhi Jayanthi
State Holiday

Karnataka formation day / Any other state holiday

Festival holidays

Celebration of Important days

The following days are celebrated with the involvement of Top Management personnel and employees
/ families :
Republic Day
Independence Day
Karnataka Rajyothsava

Remembering Important Occasions

Generally, the company employees observe mourning or take an oath for maintaining safety, integrity,
etc., on the following days :-
30th January 2 minutes silence remembering the father of the nation Mahatma Gandhi
Anti-Terrorism day
Sadbhavan Divas
Quality Pledge
Vigilance Pledge
Safety Pledge

CONCLUSION

As stated in the beginning, this HR Manual is intended to be a source of information regarding the
benefits and functioning of the organization. This would enable the employee to know about the
benefits available and the need for efficient and dedicated working while in service and also know
about the benefits at the time of getting separated from the organization.

It is expected that the HR Manual would also serve as a guide for removing confusions, if any, in the
mind of the employee and intended to improve the general discipline amongst the employees by
providing the right information which would go a long way in making the organization efficient,
profitable and grow from strength to strength.

Corporate Social Responsibilities (CSR)

Surana Industries Limited (SIL) recognizes the importance and the need to evolve and implement a
Corporate Policy on social responsibility to its environment and the community at large. Towards this
end the Company will achieve strive to implement progressively the following:

Establish an Industrial township for housing, cultural and educational needs of not only its
employees but also the community living in and around.
Establish a system of assisting the local population in times of need and also on a continual
basis requirements arising due to natural calamities, fire hazards etc.
Build roads and necessary infrastructure to make the living of local population better.
Assist in meeting the medical requirements by providing suitable medical assistance and
supply required medicines.
 Provide financial and logistical assistance for cultural activities undertaken by local
population.
Provide books, stationary and uniforms to children of down trodden community.
Employ to the maximum extent talented and qualified children of land losers and local
population.
Under take community development on a continual basis by providing opportunities for doing
business with the company where feasible.

Quality Policy
We are committed to deliver products and services with optimal quality to ensure high standard
satisfaction to our customers by meeting their requirements.

We believe that quality is the key requirement to sustain in the market. To ensure susyained and
continual improvement, we will adopt best practices in manufacturing processes, inspection and
testing.
Objectives of Quality Policy
Ensure quality products and quality services to the customers
Ensure continual and sustained improvement in manufacturing processes
Up-gradation of technology to meet customer's requirements
Endeavor to produce first time right
Involvement and participation of employees
Monitor effectiveness of the systems and processes

Industrial Safety Policy

Occupational Health, Safety & Environment Policy

We, at Surana Industries Limited, are committed for the implementation of our Occupational Health,
Safety & Environmental (HSE) Policy to safeguard the safety & health for all and to comply with all
relevant statuary requirements. We will develop and implement our Occupational Health, safety and
environment Management System confirming to International Standards.

We will achieve this through-

Involving employees on Health & Safety issues that affect them.
Ensuring high standards of Safety at workplaces.
Regularly checking that working conditions are safe and healthy.
Ensuring that employees have relevant information and training on the health and safety.
Development of greenbelts and plantation to protect environment.
Company shall inform, educate & impart training on safety, health & hygiene aspect to all its
members and the surrounding public, whenever required.
Monitoring HSE performance to ensure compliance with this policy as well as with legal
requirements.
HSE Policy will be made widely known to all employees & interested parties and will be
reviewed on an annual basis or as and when required.
We dedicate ourselves to the continual improvement in the HSE performance and it will be an integral
part of our Work culture.
Information Technology Policy
Surana Industries Limited (SIL) will strive to achieve higher productivity and consequently profitability
by continual use of information technology methods as under :
Adopt and use IT methods in its manufacturing operations for faster, accurate and quality
processing.
Develop effective communication systems through IT systems.
Effectively use office systems for all operations to avoid manual errors and transparent
working.
Systematize Accounts and related operations through IT procedures like Tally ERP for faster
processing of transactions to improve vendor satisfaction and generate data for quick
assessment of the operational results.
Adopt IT procedures for optimizing Inventory control for achieving Just in availability of
materials, reduce financing charges and increase profitability.
Supply chain Management through IT measures for bringing in transparency cost
effectiveness and quality materials.
Use IT methods for effective functioning of Human Resources Department to achieve total
Employee satisfaction there by help in reducing employee turnover.
Ensure effective security systems for control on movement of material, personnel and
unauthorized use of information pertaining to the Company.
Use IT methods to satisfy all stakeholders.

Corporate Environmental Policy

We, Surana Industries Limited (SIL), manufacture various products of Steel. The company operates
Integrated Steel Plant at Raichur in Karnataka, Gummidipoondi and Madhavaram in Tamil Nadu. We
also have an extensive marketing network through dealers to meet the diversified needs of
customers.

SIL reaffirms its commitment to developing a clean and sustainable environment by enhancing its
environmental performance as an integral part of its business philosophy and values. Accordingly, we
are committed to the following :
Integrate sound environmental management practices in all our activities.
Operate in an environmentally responsible manner to comply with applicable legal and other
requirements related to its environmental aspects and strive to go beyond.
Adopt cleaner and energy efficient technologies.
Minimize waste generation and promote recovery, recycle and reuse.
Increase greenery by adopting horticultural and afforestation methods.
Strive for improvement in environmental performance by setting challenging targets,
measuring progress, taking corrective action and communicating environmental information to
all concerned.
Enhance environmental awareness amongst employees and the population around the
plants.
Encourage all associates business or otherwise to co-operate and adopt methods for
environmental protection.