Policies & Procedures at Ritu Kumar

Corporate Policy

 Code of Business Conduct & Ethics

 Gift Policy
 Dignity, Respect and Harassment Policy
 Whistle-blower Policy

Finance Policy

 Employee Advance Salary Policy

 Vehicle Loan Scheme
 Travel , Conveyance & Entertainment Policy

Human Resources Policy

 Employee Discount Policy

 Leave Policy
 Employee Referral Policy
 Reward and Recognition Policy
 Employee Engagement Policy
 Disciplinary Policy
 Grievance Procedure & Policy
 Retirement Policy
 Employee Separation Policy

Store Procedures and Policy

 Store Pilferage and Stock Audit Policy

1|P age
Code of Business Conduct & Ethics

It is the company’s intention to help you avoid situations in which personal interest may conflict with the
company’s interests by defining a code of conduct.

Whenever you or member of your family have either a direct or indirect interest in a transaction involving the
company a possible conflict of interest exists. Even an appearance of a conflict of interest will be as damaging
as a real conflict. Therefore, you are urged to keep all relationships within and outside the company totally
confidential, be prudent in conducting company’s business, be objective in decision making and at all times be
frank, open and candid with colleagues.

Following are examples of specific situations:

Purchases:

Avoid situation that may influence or appear to influence vendors who transact with the company.

Gifts:

Gifts should not be accepted from either customers or suppliers. Exceptions can be made for gifts of nominal
value when it is not associated with showing any favours, granting contracts or orders, releasing payments; or
where refusal could affect the relationship between the company and person giving the gift.

Gift given:

Similarly giving of a gift to a customer, supplier or government official should be such which is not interpreted
as consideration for official or business favors. This does not include gifts which are given to customers,
associates or others when the gift is part of the company policy.

Graft:

Dealing illicitly with either vendor or customers for personal gain will invite immediate dismissal. You are
expected to inform the management of any such offer so that the company ensures that dealing with that
person ceases. It is expected that no personal profit or gain is made from your association with the company
including publications, speeches, public appearances, radio, TV broadcast, without company’s authority in
writing.
No code of conduct can possibly cover all aspects and situations. However, following questions will help you
to decide how to act when confronted with the decision:

 Is my action legal and it complies with company policy?

 Is my intended action reasonable or appears to be reasonable, and can it be justified?

 Would I be compromised if my action gets known to my colleagues, subordinates or friends?

2|P age
  Can I justify my action to my vendors?

 Will my action endanger anyone’s life, health or safety?

 You undertake to comply with the following:

 In all dealings you will conform with law, regulation and good business practice.

 You will not abuse the trust that is placed in you as a responsible member of the staff.

 You will maintain the highest standards of integrity.

Any breach of the above will be considered grounds for dismissal irrespective of other proceedings that may
be instigated.

The following points also need attention:

Maintain strict discipline

Have respect for each other in the store, office / factory.

Your language and conversation should be dignified.

Observe correct etiquette.

Be utmost polite in your dealing with your office colleagues as well as business associates and maintain a
cordial relationship. There is no reason to either lose your temper or be high-pitched both in personal as well
as telephonic conversation.

Similarly, written correspondence in the form of email, fax and letter should also be drafted in a friendly and
polite but formal language. You can still be effective.

Be hospitable to your business guests and look after them. Irrespective of whose guest he or she is, it should
be common attempt of all of us to give him / her an impression of a united happy family.

No gossiping and games or similar items to be played on computers please.

Be punctual and keep up your appointments.

Keep to your word and maintain your promise.

Your turn out in the office / factory should be neat, smart and trendy.

Exhibit a cheerful face. Be calm and composed. Avoid nervousness and maintain good humor.
3|P age
Be true to yourself and honest to the company.

Don’t lose time.

Office circulars are to be carefully read, correctly understood and strictly complied with.

Housekeeping and maintenance is the responsibility of everyone. Keep your own place of work and equipment
and furnishings around you neat, clean and tidy.

Consumption of alcohol during duty period inside or outside office / factory premises is strictly prohibited.

4|P age
Prevention of Sexual Harassment

Terms used in this policy

“Company” or ‘’Ritika Pvt. Ltd.’’ in this policy would mean Ritika Pvt. Ltd. “Head of Human Resources of Ritika
Pvt. Ltd.” would mean senior authorized person of the Human Resources Department of Ritika Pvt. Ltd.

Purpose of the Policy

Ritika Pvt. Ltd. is committed to providing a workplace free from all forms of discrimination and harassment
including sexual harassment, and strives to create an environment in which every female employee is treated
with respect and professionalism.

Scope of this policy

As a matter of policy, any and all complaints or allegations of sexual harassment will be investigated promptly.
Appropriate, corrective action will be implemented based upon the results of the investigation in the event
sexual harassment is found to have taken place.

Pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Ritika Pvt. Ltd. has developed the present policy and procedures designed to prevent sexual harassment, and
to deal with any complaints which may arise.
Ritika Pvt. Ltd. employees are responsible for complying with the guidelines outlined in this policy. Conduct
prohibited by this policy is unacceptable in the work place or in any other work related setting outside the
work place, such as business trips, business meetings and business related social events, up to and including
parties originating from the workplace.

Definition of Sexual Harassment

Sexual harassment includes such unwelcome sexually determined behaviour (whether directly or by
implication) as:
(a) physical contact and advances;
(b) a demand or request for sexual favours;
(c) sexually-coloured remarks;
(d) showing pornography;
(e) any other unwelcome physical, verbal or nonverbal conduct of sexual nature.
These acts are committed in circumstances where the victim has a reasonable apprehension that in relation to
the victim's employment or work, such conduct can be humiliating and may constitute a health and safety
problem. There may be other circumstances which may amount to sexual harassment such as implied or
explicit promise of preferential treatment in her employment; or implied or explicit threat of detrimental
treatment in her employment. Adverse consequences (disadvantage to her in her employment including in
recruiting or promotion or threat about her present or future employment status or interference with her
work or creating an intimidating or offensive or hostile work environment) might result if the victim does not
consent to the conduct in question or raises any objection thereto.

5|P age
Reporting Responsibilities and Procedures

All employees at Ritika Pvt. Ltd. including managers have a duty to prevent and immediately report any sexual
harassment conduct (in the workplace or work-related settings) even if they do not personally believe that the
conduct amounts to sexual harassment. No reported incident should be considered too trivial, and Ritika Pvt.
Ltd. strongly encourages all employees to come forward with their observations or complaints.
Employees who believe they have been a victim of sexual harassment or who have observed inappropriate
conduct should immediately report the incident to the Human Resources department. Employees may also
report inappropriate conduct to their immediate manager or any member of management. Employees should
not feel obligated to bring complaints to their immediate manager when there is reason to believe that such
person might be directly involved in the conduct. Moreover, this procedure does not prevent an employee
who is experiencing conduct which violates this policy from notifying the offender that his/her conduct is
unwelcome and requesting that it be discontinued. In case the employee reports the incident, they may do so
by placing the report in a sealed envelope marked “Personal and Confidential.” The following information
should be included in the written statement:
The date(s) of the incident(s),
Identity of the alleged harasser,
Identity of any witnesses, and
Details of the incident(s).

Complaints of sexual harassment by third party

In case an act of sexual harassment at the workplace is committed by a third party or an outsider, Ritika Pvt.
Ltd. shall give full support to its employees taking legal action against such third party or outsiders as provided
under law. A police complaint should also be made against the alleged harasser in case the conduct is an
offence under criminal law or is serious enough, such as stalking of the female employees.

Procedure for lodging complaints of sexual harassment at the workplace

Any aggrieved female employee may lodge a complaint of sexual harassment at workplace in writing to the
Internal Complaint Committee (“Complaint Committee”) within a period of three months from the occurrence
of an incident of sexually oriented behaviour and in case of a series of incidents, within a period of three
months from the date of the last incident. The Complaint Committee may, for the reasons to be recorded in
writing, extend the time limit not exceeding three months on being satisfied that the circumstances were such
that prevented the female employee from filing a complaint within the said period.
Where such complaint cannot be made in writing due to some reason, the members of the Complaint
Committee shall render all reasonable assistance to the female employee(s) for making the complaint in
writing. If the complaint has been lodged with the reporting manager, the reporting manager should
immediately transmit the complaint directly to the Complaint Committee and also apprise the Complaint
Committee of any action taken, failing which such superior will be liable for penalties. Another employee may
also file a complaint on behalf of the aggrieved person in certain cases.

6|P age
Procedure on receipt of complaint of sexual harassment at the workplace

Conciliation

The Complaint Committee may, before initiating an inquiry or investigation on the complaint of sexual
harassment at workplace, at the request of the aggrieved woman employee take steps to settle the matter
between her and the alleged harasser employee/respondent through conciliation. However, no monetary
settlement shall be made as a basis of conciliation.
On reaching a settlement, the Complaint Committee shall record such settlement so arrived and forward the
same to the Head of Human Resources of Ritika Pvt. Ltd. to take action as specified in the settlement. In such a
case, no further investigation shall be conducted by the Complaint Committee after settlement is arrived
between the parties.

Investigation

The Complaint Committee shall promptly and thoroughly investigate the complaint referred to it according to
the provisions of the service rules applicable to the employees in Ritika Pvt. Ltd. Every employee shall co-
operate with the Complaint Committee in its investigation and any failure to cooperate with the Complaint
Committee in its investigation will be deemed as a contravention of this policy. The Complaint Committee
shall document all investigations and findings in writing. The Complaint Committee shall follow principles of
natural justice in all its proceedings. During the course of investigation, both parties shall be given an
opportunity of being heard and a copy of the findings shall be made available to both parties enabling them to
make a representation against the findings before the Compliant Committee. In case of a complaint against
the member/s of the Complaint Committee, these members will not be part of the investigation. The
Complaint Committee, in consultation with the Head of Human Resources of Ritika Pvt. Ltd., can induct/
substitute members for this investigation. The Complaint Committee shall have the same power as vested in a
civil court when trying a suit for certain matters. The investigation shall be completed within a period of ninety
(90) days by the Complaint Committee.

Communication of findings

The Complaint Committee shall within a period of ten (10) days from the date of completion of investigation
provide a report of its findings to the Head of Human Resources of Ritika Pvt. Ltd. and such report be made
available to the concerned parties.
In case, the Complaint Committee arrives at the conclusion that the allegation against the alleged harasser
employee has not been proved, it shall recommend to the Head of Human Resources of Ritika Pvt. Ltd. that no
action is required to be taken in the matter.
In case, the Complaint Committee arrives at the conclusion that the allegation against the alleged harasser
employee has been proved, it shall recommend to the of Human Resources of Ritika Pvt. Ltd. to take action for
sexual harassment as a misconduct in accordance with the provisions of the service rules applicable to alleged
harasser employee and to deduct from his salary or wages of such sum as it may consider appropriate to be
paid to the aggrieved woman employee. The Complaint Committee shall consider various factors such as
mental trauma, pain, suffering and emotional distress caused to the aggrieved female employee, the loss in
career opportunities due to incident of sexual harassment, medical expenses incurred by the victim for
physical or psychiatric treatment, the income and financial status of the alleged harasser employee, feasibility
7|P age
of such payment in lump sum or in instalments to determine the sum to be paid to the aggrieved female
employee.

Implementation of recommendation of the Complaint Committee

The Head of Human Resources shall be the implementing authority and initiate necessary action as per the
recommendation of the Complaints Committee. The implementation of the orders shall be implemented
within sixty (60) days of receipt of recommendation by the Head of Human Resources Ritika Pvt. Ltd.

Appeal

Any person aggrieved from the recommendation of the Complaint Committee or non-implementation of such
recommendation may prefer an appeal to the court or tribunal in the provisions of the accordance with
service rules applicable to such person. The appeal shall be preferred within a period of ninety (90) days of the
recommendation.

Malicious Complaints

In case the Complaint Committee arrives at a conclusion that the allegation against the alleged harasser
employee is malicious or the aggrieved female employee or any other person has made a false complaint or
while making the complaint, has produced any forged or misleading document, it may recommend to the
Head of Human Resources of Ritika Pvt. Ltd.to take action against such woman employee or the person who
has made the complaint in accordance with the provisions of the service rules applicable to her or him.
However, mere inability to substantiate a complaint or provide adequate proof need not attract action against
the complainant. Further, before any action is recommended against the complainant, the malicious intent on
part of the complainant shall be established after an investigation in accordance with the procedure
prescribed.

Liability for Harassment

An employee who engages in harassment may be held personally liable for monetary damages. Ritika Pvt. Ltd.
will not pay damages assessed personally against any employee.

The norms governing Complaint Committee’s Investigation

Complaint Committee will investigate all sexual harassment claims promptly and thoroughly irrespective of
the identity of the alleged harasser.
The investigation will include, for example, inquiry into the alleged harasser’s identity, the specific conduct
complained of, the identity of witnesses, and the number of times the conduct has occurred.
The Complaint Committee will seek responses from the alleged harasser, the alleged victim, and witnesses.
In determining whether the conduct constitutes prohibited harassment, the Complaint Committee will
consider the totality of the circumstances, the nature of the harassment, and the context in which the alleged
incident or incidents occurred.
Ritika Pvt. Ltd. will keep all information concerning the incident or incidents such as the contents of the
complaint, the identity and address of the aggrieved woman, respondent and witnesses, any information
8|P age
relating to conciliation and inquiry proceedings, recommendations of Complaint Committee and the action
taken by the employer, etc. as confidential as possible and shall not publish, communicate or making known to
public, press and media. Ritika Pvt. Ltd. will provide access to and disclose information to only those
individuals involved in the investigation and its resolution. However, information may be disseminated
regarding the justice secured to any victim of sexual harassment without disclosing the name, address,
identity or any other particulars calculated to lead to the identification of the aggrieved woman and witnesses.
Ritika Pvt. Ltd. will inform the alleged victim and harasser about the results of the investigation and the steps
Ritika Pvt. Ltd. will be taking in response to the complaint.
Ritika Pvt. Ltd. will not use the information against the person who makes a truthful, good faith allegation of
harassment.

Criminal Proceedings

In case, conduct of the alleged harasser employee amounts to a specific offence under the criminal laws, Ritika
Pvt. Ltd. shall lodge complaint with the appropriate authority including Police in accordance with law
immediately.
Disciplinary Action

In case conduct of the alleged harasser employee amounts to misconduct, appropriate disciplinary action shall
be initiated by Ritika Pvt. Ltd. in accordance with service rules.

Assurance of Non-Retaliation

Ritika Pvt. Ltd. does not permit or condone retaliation.

No one will suffer any adverse consequences as a result of bringing the harassment to Ritika Pvt. Ltd.’s
attention. There will be no retaliation for either reporting the harassment or for cooperating in the
investigation of the complaint. Any employee responsible for retaliatory conduct will be subject to discipline,
up to and including discharge. If an employee believes that he or she is retaliated against, the employee is to
report the retaliation by using the same procedures discussed above for reporting harassment.
No part of this policy may be used as a method of retaliation at the workplace.

The victims of sexual harassment will have the option to seek transfer of the perpetrator or her own transfer.
Leaves for a period of three (3) months may be granted to aggrieved female employee. This shall be in
addition to the leave she would otherwise be entitled.

Awareness
Employees will be allowed to raise issues of sexual harassment at workers' meeting and in other appropriate
forum and it should be affirmatively discussed in employer-employee meetings.
Any updates, exceptions and amendments to this policy would need to be approved by the Head of Human
Resources Ritika Pvt. Ltd.

9|P age
RECEIPT AND ACKNOWLEDGEMENT
FOR
EMPLOYEE POLICY ON PREVETION OF SEXUAL HARASSMENT
This is to acknowledge that I have received a copy of the Prevention of Sexual Harassment policy. This policy
sets forth the policies and the modalities for administering those pertaining to sexual harassment. I
understand and agree that it is my responsibility to read and familiarize myself with all of the provisions of the
policy.
I understand that the provisions of this policy, the Ritika Pvt. Ltd. reserves the right to amend, modify, rescind,
delete, supplement or add to the provisions of this policy as it deems appropriate from time to time in its sole
and absolute discretion. Ritika Pvt. Ltd. will attempt to provide you notification of any other changes as they
occur.
I am committed to abide by the policy and to act in a professional manner that will respect the dignity of our
colleagues, seniors, subordinates & visitors.
Date: <____________>
Signed: <__________________________________________> (Employee)

Proposed Internal Compliant Committee Members for a term of 3 years are attached in ICC Member
Annexure.

Sexual Harassment of Women at Workplace Act, 2013 (ICC Members)

S.no Name Designation Contact Number Email-id

1. Divya Sardana Deputy Head – 0124-3884309 divya.sardana@ritukumar.com
Merchandising
2. Mamta Godara Assistant Manager – 0124-3884367 mamta.godara@ritukumar.com
Human Resources
3. Sareen Vashisth Manager – Training 0124-3884368 Sareen.vashisth@ritukumar.com

4. Priyanka Kapoor Category Merchandiser 0124-3884311 priyanka.kapoor@ritukumar.com

5. Jayant Sharma Senior Manager - 0124-3884354 jayant.sharma@ritukumar.com
Production
6. Major. Sharma Senior Manager – 0124-3884300 msharma@ritukumar.com
Personnel and
Administrator
7. Debolina Assistant Manager - HR 033 -22519339, debolina.chakrabarti@ritukumar.com
Chakrabarti 22510041
8. Vanita Bose Brand Manager 033 -22519339, vanita@ritukumar.com
22510041
9. Rohit Kumar Manager Production 0124-3884102 rohit@kalamkari.com
Singh
10. Namisha Arora Assistant Merchandiser 0124-3884201 namisha.arora@ritukumar.com
11. Krishna Kumar Executive - HR 0124-3884102 krishna@kalamkari.com
12. Manoj Kumar Manager – HR 0124-3884201 manoj@kalamkari.com
13. Anju Sabharwal External Representative 9811054211 anju@peoplebridges.co.in
- ICC

10 | P a g e
Whistleblower Policy

PURPOSE:
It is company’s objective to maintain Industrial peace and harmony and for this purpose, all grievances of the
employees brought to notice will be attended to in the shortest possible time by the immediate supervisor
and superiors at every stage. The procedure, as given below, will be followed:

Grievance for this purpose mean, any dissatisfaction arising out of working environment, where agreement
has not already been established. This will cover wages, extra hour duty/ overtime. Transfer, promotion,
assignment and appeal against any disciplinary action.

(c) In all cases, the order given by the Management shall first be complied with and taken up as a grievance
later on.

SCOPE:
It covers all sorts of grievances of the employees.

RESPONSIBILITY:
MA is overall responsible for implementation of this procedure. Section Heads/ Supervisors are responsible for
receiving and handling of grievances in their department.

PROCEDURE:

4.1 A workman having cause of complaint shall have a right to present his case for investigation
and consideration. The procedure of its redress shall be as follows:

Stage – 1
A workman desiring to raise any question in which he is directly concern, shall in the first instance discuss it
with his immediate Supervisor or his Section Head, within two days of the arising of the complaint.

Stage – 2
Failing a satisfactory solution of his problems by his immediate supervisor or his Sectional Head, as the case
may be, within three days, the workman may request the consideration of his case by the Director Incharge.

4.2 In general standing instruction manual to be followed of different types of complaints.

4.3 A suggestion box has been put in the floor to receive complaints / suggestions, box is opened
once in fifteen days and all suggestions / complaints are entered in the complaint/suggestion register.
4.4 All complaints are handled as per the procedure for Prohibition of harassment or abuse and
decisions are taken as per standing instruction manual.
4.5 All suggestions received from the suggestion box are reviewed by Director and action is
decided accordingly and suggestion/complaint register is updated.
4.6 Any corrective action/ preventive action generated as a result of review of complaint/
suggestion is taken as per the procedure for corrective actions/preventive action.
11 | P a g e
Employee Advance Salary Policy

Advances can be under two heads:

Long Term - Long term advance is that which is taken by the employee.

Short Term – Short term advance is that which is taken against salary for the month.

Long Term Advance

Only those employees, who have completed at least one year of service in the company, shall be eligible.
This advance will be allowed to confirmed employees of the company.
The loan shall be subject to a maximum of two month’s salary/wage.
No loan / advance shall be granted in case any earlier loan / advance is lying unpaid in the name of the
employee.
The loan shall be deducted in equal monthly installments, subject to a maximum of ten installments.
If at the time of payment of bonus or any other award etc., any loan is pending in the name of the employee,
the same shall be fully adjusted and the balance, if any, shall be paid.
In case an employee intends to resign, he shall be required to settle all his/ her pending advances
immediately.
Sanction of loan amount and their installments will be at the sole discretion of the Management.

Short Term Advance

This advance shall be paid against the current month’s salary and shall be fully recovered in the same month.
Advance in this category shall be subject to a maximum amount calculated on the basis of number of days
worked by the employee during the month and shall be subject to all statutory deductions, including
installments of long term advance if any.
No advance shall be considered before 15th of a month. The advance will only be cnsidered after the employee
applies for the same and is strongly recommended by his Head of Department.
We must discourage any type of Loan/ Advance and should consider such requests only when there is a
requiring genuine attention.
Please adhere to these rules strictly for effective control. We should remember that granting loan to
employees would always create financial hardships for them, when the same are deducted from their salaries
and such hardships shall have a bearing on the work efficiency. Any financial hardship makes an employee
morally weak.

12 | P a g e
Vehicle Loan Policy

Scheme
The objective of this policy is to provide the employees of Ritika Pvt. Ltd., the local benefit of company vehicle
and reward the employee for service loyalty, only that employee who have completed at least five year of
service in the company, shall be eligible.
1. The vehicle will be for both official and personal use of the employee.
2. On completing the fifth year, the concerned employee will be given option to purchase the vehicle at
the depreciated value of the car which will be calculated based on 15% depreciation from the date of
purchase.
3. In case, the employee is not interested in buying the vehicle, first priority will be given to any employee
of the company who gives the highest bid over and above 20% of the depreciated value.
4. On sale of the vehicle, the employee is entitled for a new car again for a cycle of 5 years. If any
employee leaves the company before 5 years, he / she will be eligible to buy the vehicle. The condition
of sale will be as in para #2.15 below.
5. Employee has applied for purchase of the vehicle as per format attached. Thereafter, company will
issue the letter giving the details of terms and conditions of SVS to the employee. On receipt of the
duplicate copy of the letter duly signed by the employee, the company will proceed with the purchase
of the vehicle.
6. An Agreement on Non Judicial stamp paper of Rs. 100/- , between the company and employee will be
signed based on the terms and conditions of SVS. It will be duly notarized.
7. Final decision to accept the application will be with the Management.
Criteria / Eligibility
1. Any permanent employee, with CTC of Rs. 5 lacs, and above will be eligible for the car and others for
motorcycle / scooter with CTC of one lac.
2. The vehicle will be as per the salary range and on the discretion of the Management.
3. The booking amount of the minimum of 15% of the purchase value of the vehicle, will be borne by the
employee and any other loan type will not be merged for this.
4. The balance remaining cost (cost of vehicle/ insurance/ road tax/etc) will be borne by company and
will be deducted from the employee’s salary for 60 months in equal instalments.
5. The vehicle will remain as employer’s property till it is transferred in the name of employee. Till the
time, it is transferred in the employee’s name; the employee will have no lien on the vehicle. However,
the vehicle will be used by the employee from the very first day.
6. The benefit will be given for 60 months only.
7. The vehicle insurance will be borne by the company; however the cost of insurance will be taken from
the employee in the month when the insurance is due.
8. Any damage to the vehicle will be employee’s responsibility and the cost of repairs would be charged
from the employee.
9. The employee shall be fully responsible (shall keep the company indemnified) for all damages, theft,
accident, claims whatsoever while using the vehicle and the employer shall not be responsible in any
manner whatsoever.
10. Purchase bill copy and registration copy of the vehicle will remain with the Management till such time.
11. Maintenance of the vehicle will be done only from by authorized service centre and will be the
13 | P a g e
 responsibility of the employee at his/her cost.
12. The company will take a Pro-forma invoice from the various car dealers and will finalize with the one
giving better discounts / deals.
13. The final calculations will be done by the Senior Manager – Personnel & Admin & Finance team.
14. The EMI will be deducted from the employee’s salary from month following in which the vehicle is
given to him.
15. In case, the employee leaves or is asked to leave the services of the company because of any reasons
or opts out of the scheme before 60 months, then the employee will have the option of getting the
vehicle transferred to his / her name by paying off the balance of the full cost of the vehicle including
the amount of interest and prepayment penalty on bank financed loan. If the employee does not pay
he /she will forfeit the full amount of instalments paid till then without any recourse.

14 | P a g e
Travel Policy

Purpose - The Company reimburses employees for reasonable and necessary actual travel expenses incurred
when travelling within India on approved Company business. Employees are expected to use good judgment
and act in a responsible manner when incurring expenses. These rules may be
amended/modified/revised/reduced at the sole discretion of the management without any notice.

Applicability and General Direction:

These rules will be applicable to all the employees of company.

Travel on company account will be on the most economical basis consistent with the company’s interest and
work requirement. While no person is expected to be out of pocket when traveling on company’s work, it is
expected that due care and prudence will be exercised.
All tours must be undertaken with prior sanction, in the approved Travel Requisition form as per Annexure I,
from the specified approving authority. The tour programme should be sent out in writing and left with the
superior concerned and approval sought in writing on return. Copy of the tour programme must be forwarded
to:
i. HR for attendance
ii. Accounts for obtaining advance/travel expense claim
iii. Travel agency/Administration for travel bookings (if bookings relate to journeys
commencing 48 hours or later for train and 24 hours or later by air).
iv. Company personnel, while on tour, are expected to maintain the highest norms of
conduct/behaviour consistent with the business/company’s tradition and image.
v. On touring stations, it is expected that the employees, as far as possible, stay in a
hotel/accommodation nearest to the working place to minimize conveyance expenses.

Procedure for Booking of Tickets:

By Air:
In corporate, employees proceeding on tour will send in the Air Travel Requisition form to the immediate
supervisor for approval and forward the approved Travel Requisition form directly to the travel coordinator /
front office / Secretary.
In the regions / locations the same process will be implemented and the approved travel agency will be
appointed by the respective Business Head/VP Ops/Regional Manager with all details of the policy briefed to
the travel agency. Any deviations to the policy will be the responsibility of the Regional Manager. They are
required to take necessary approvals in case of any deviations from the Head – HR.

By Train:
In corporate, employees proceeding on tour will send in the Travel Requisition form to the immediate
supervisor for approval and forward the approved Travel Requisition form directly to the travel coordinator /
front office / Secretary.
In the event the ticket is required to be cancelled, the administration dept/ travel agency will take the needed
action on the receipt of written note from the concerned department indicating date, time and reasons for
cancellation, the column for which is prescribed in the form.
15 | P a g e
By Road:

In corporate, employees proceeding on tour will send in the Travel Requisition form to the form to the
immediate supervisor for approval and forward the approved Travel Requisition form directly to the travel
coordinator / front office / Secretary.

As per the designation the car booking can be made in advance through the administration department. In
case of exigencies where in the employee has to make own arrangements for travel by road, the
reimbursement will not exceed Rs.8/- per Km. for AC and Rs.5/- per Km. for non AC or alternatively use
through the Admin dept. or from approved taxi stand.

Daily Allowance:
The allowances are intended to cover the ordinary daily expenses of an employee on tour and include
boarding, lodging and other incidental expenses.
These allowances are payable only for days on duty away from place of posting and should not be drawn for
the period of absence from duty.
Cancellation charges for travel tickets will be reimbursed if the tour has been cancelled/postponed under
advice of the sanctioning authority and all care has been taken to ensure minimum loss to the company in
terms of refund obtained.

Non-allowable expenses:
Personal entertainment or recreation expenses such as golf, massages, tennis, night clubs, attraction
admission fees, in room movies, in-flight movies, kennel fees, shoe shine, reading materials, beauty, gym,
workout fees and charitable donations.
 Alcohol and tobacco purchases.
 Mini bar charges. (In case an employee consumes non-alcoholic beverage, soft drink, water from the
mini bar
 Personal clothing, luggage, toilet articles and other miscellaneous personal items
 Expenditure for meals when employee is still within the vicinity of his/her primary work location
Spouse/family/non-employee travel – Those costs are not reimbursable as a general rule

Procedure for submission of bills:

All tour expense claims in the approved form along with any unutilized advance, must be submitted within 3
days of return from tour where it does not pertain to a centre. No further advance will be given unless the
previous advance is cleared. All advance not cleared in the stipulated period are liable to be deducted from
the next month’s salary.
The whole or a part of the travelling expenses claimed for a journey may be disallowed if after scrutiny it is
found that any part of it was unnecessary or that it was not completed with due diligence, or that any item or
the expense billed is unauthorized or excessive.

Cancellations of Tickets:
Under no circumstances the cancellation of any ticket will be done without the approval from HR or
immediate supervisor.
No direct call will be made to the travel agent for cancellation.
16 | P a g e
All correspondence should be routed through Soni and approved by HR Head for any type of cancellation.
Any unapproved cancellation will be debited to employee’s account.

Local Conveyance Reimbursement:

The local conveyance reimbursement will be applicable for employees who go out from the office for official
work in their own vehicle.
These visits can be for official meeting, store rounds, trainings, etc.
The local conveyance as per the grade / designation will be paid to employee post the approval of the
immediate supervisor.
The parking slips / toll tax slip etc should also be attached while claiming the conveyance.
Any unapproved conveyance vouchers will be rejected by the hr / finance department.
Use of Uber & Ola services is encouraged instead of full day taxi hire if there is not much change of physical
location of the employee during the working day.

Date of Request: _____ _________ Date of Departure: _________

(day/month/year) (day/month/year)

Name of Traveler: ________________________________________________

Department No : _______________________________________________________
Destination (include dates of travel):
Purpose of Trip:

Type of Travel
(pl tick as applicable)

AIR
Train
On Road
Approved by

Employee Signature: ________________________________ Date:

______________________

Reporting Manager’s Signature: ______________________________ Date:

_______________________

17 | P a g e
* Class “A” City : Delhi, Bangalore, Chennai, Mumbai, Hyderabad, Calcutta, Pune
* Class “B” City: Ahmedabad, Jaipur, Pune, Chandigarh, Kochi, Lucknow, Ludhiana, Amritsar.
* Class “C” City: All other cities not listed above.
Fuel
Reims
(employ
ee using Monthly
own Telephon
car/two DA e
Outstati wheeler entitleme Allowanc
on (for Boarding Allowance Allowance (In Rs.) for nts for a e for
Travel Intra City official (In Rs.) Inclusive of breakfast, lunch & full day official
Designation by Travel by work) all taxes dinner visit purpose

City City City City City City

“A” “B” “C” “A” “B” “C”
Econom
COO / VP/ y Air/Ac
functional 1st On
Heads/ GM Class Car/Taxi Rs 8/KM 9000 7500 5000 2000 1000 750 1000 actuals
Econom As per
DGM/AVPs/ Sr. y Air/Ac Limit
Designers II Class Car/Taxi Rs 8/KM 8000 5500 3500 1600 525 350 800 decided
Sr. Manager /
Manager /
Designers
/Production
Manager /
Product Manage
/ Sr.
Merchandiser/
DM/AM/Store
Manager / Econom As per
Merchandiser y Air/Ac Limit
/VM II Class Car/Taxi Rs 8/KM 5000 3500 2000 1000 300 200 500 decided
Sr. Two As per
Executive/ASM AC III Wheeler Limit
/Sr.Sales Staff Tier /Auto Rs 4/KM 2500 2000 1250 500 188 125 250 decided
Executive/
Assistant Two As per
Coordinator/Sale AC III Wheeler Rs Limit
s Staff Tier /Auto 3.5/KM 2000 1500 1000 400 150 100 200 decided
As per
Supervisor/labor Sleeper Limit
/ helper Class Bus 1500 1000 750 300 113 75 150 decided

18 | P a g e
Conveyance Allowance

Conveyance Allowance can be allowed to certain personnel of the company who perform the official duties at
the following rates. These rates may be revised/ reviewed from time to time.

Car – Employee using their personal cars will be reimbursed the conveyance at the rate of Rs.8.00 per
K.M.
Taxi – Employees using a Taxi for official work will be entitled for the reimbursement of the same.

Procedure to claim the reimbursement

Personal Car: After completion of the journey, while using personal vehicle, conveyance voucher, available in
Admin Department, is required to filled giving the details required
to be filled in the self-explanatory columns. Filled forms duly countersigned by the Head of Department, is to
be submitted to the cashier for payment.
Taxi: You can submit the Taxi Fare receipt, along with the Travel policy duly signed by you and your HOD, to
the Accounts department. After receiving the same the Accounts department shall process the refund of the
same in your bank account.
As far as the Heads of Departments, including Merchandisers, are concerned, they should fill the details in the
conveyance voucher & after signing the same, it should be submitted to the Manager Accounts who will
arrange for payment in cash / cheque as convenient. Conveyance voucher can be submitted on fortnightly
/monthly basis.
In case of any difficulty, Manager Accounts can be contacted.

19 | P a g e
Employee Discount Policy
It is our pleasure to inform you that being a part of Ritu Kumar Family entitles you 35% discount
on all Ritu Kumar Merchandise across all store with immediate effect.

Group A : You would be eligible to purchase Ritu Kumar Merchandise Worth 30,000 Only (After
35% Discount) per annum at the above mentioned discount rate.

Group B : You would be eligible to purchase Ritu Kumar Merchandise Worth 20,000 Only (After
35% Discount) per annum at the above mentioned discount rate.

The other terms and conditions of this benefit are as follows:

Discount year will be from April to March

Only one card per team member shall be issued per year.
No duplicate card will be issued for loss of card.
The card will be honored across all Ritu Kumar Stores only if presented in person.
It is sole responsibility of the team member to maintain and get it updated properly.
In case it is found that team member has violated the discount policy, then the card will be cancelled.

This card is the property of Ritika Pvt. Ltd. And shall be valid for the period specified therein or until the
tenure of your employment with the organization whichever is earlier.

In the event of cessation of your employment on account of Resignation/Termination you are required to
return the card to the HR.

The Management reserves the right to cancel the benefit to all/any team member with/without any notice
of any reason thereof.

Any exception to above rules and regulation would be only at the discretion of the management.
Discount will be available of the stock having age of Six month in case of non-RI items and One year age for RI
items Trust that you would follow the above guidelines at all times. We wish you and your family a great
shopping experience at your own Ritu Kumar Stores.

20 | P a g e
Leave Policy

Sr. Particulars Causal Leave Sick Leave Earned Leave

No
1 Entitlement 7 days per year 7 days per year One day for 20 actual working days. Can be
maximum 15 days in a year
2 Eligibility Pro rata credit from Pro rata credit from Pro rata credit from date of
the date of joining the date of joining joining but you can avail EL after confirmation
and completion of one year of service.

3. Combining leave Cannot be combine Cannot be Cannot be combined with

with any Leave combined any Leave
4. Encashment No Encashment No
withEncashment
any Leave Maximum 15 days leaves will be carry
forwarded and balance EL leaves will be
encashed every year and encashment will be
made based on Basic salary and HRA
5. Carrying forward Not carry forwarded Not carry Maximum 15 days leaves will be carry
forwarded forwarded
4. Number of days Maximum two days If absence is for To avail leave for 3 and more than 3 days,
one can take at a at a time. Not more more than 2 days, leave application must reach the
time than 2 days’ leave can you are required to Management 30 days in advance for sanction
be availed in a quarter. submit certificate of the same. In case of emergency, the
Application for leave is from registered application will be considered on case
to be put up at least 3 medical to case basis. Leave earned during the
days in advance. This practitioner. current year can only be availed in the
leave cannot be next year
combined with any
other types of leave.
Balance of leaves will
lapse on 31st December
and will not be carried
forward

Note: It will be the responsibility of the individual to ensure that the application reaches Personnel Office as
per the timings given above, after recommendation by Head of Department. Heads of Department must
adhere to the instructions while recommending the applications of leave. Leave is privilege and not right. It
can be denied depending upon the exigencies of work requirements.

All leaves/out duty/Comp. off detail with manager’s approval should be sent to hr@ritukumar.com every
time.

21 | P a g e
Compensatory Leave

Definition of Compensatory Leave

Compensatory Leave is to be given to staff members only in lieu of work done by individual on his off day or a
declared holiday.

Entitlement of Compensatory Leave

Staff members, who are not covered under any kind of “Incentive scheme” will be entitled to Compensatory
Leave as per the following scale: -

If the staff member has worked for more than 4 hours on his off day or a declared
Holiday, the individual can avail half day’s Compensatory Leave.

If the staff member has worked for more than 7 hours on one’s off day or a declared holiday, the individual
can avail one day’s Compensatory Leave.

Other Conditions

To earn Compensatory Leave, the staff member has to work at least four days in a Week for a weekly off
entitlement.

Departmental Head will send intimation of the staff members required to be detailed to work on one’s off day
or a declared holiday in advance to the Personnel Department will obtain necessary permission and issue
necessary instructions.

The staff member has to record one’s attendance in the Attendance Machine or in The register kept at the
Security Gate in case the Attendance Machine is not working.

Compensatory Leave is also encashable in lieu of availing the same. Compensatory Leave can be availed
within 21 days of the actual work done on Individual’s off day or a declared holiday and if due to exigency of
service, it can’t be sanctioned, the application for encashment must reach Personnel Department within 30
days of actual work done on one’s off day or a declared holiday who will verify the same from the records
from Attendance Machine or the Register kept at the Security Gate and forward the same to Accounts
Department for payment.

If the Compensatory Leave is neither availed nor encashed within the above mentioned period, the same
will automatically lapse.

Procedure for sanction of Compensatory Leave will be the same as of other types of leave.

22 | P a g e
The Maternity Benefit Act 2017

Maternity leave laws are needed in any legal framework to protect the rights of women employees. The rights
include pay, compassion and certain privileges for the pregnant employee from the employer. The Act also
includes the education of women employees on their maternity benefits and rights at the workplace.

According to the latest amendments to the Maternity Benefit Act 2017, maternity leave is raised from 12
weeks to 26 weeks. The prenatal leave is extended from earlier 6 weeks to 8 weeks and 18 weeks post the
childbirth.

1. Eligibility for Maternity leave

A woman is eligible to claim maternity benefits under the following conditions:

 Women employed in any establishment, whether directly or through any agency are eligible to claim
maternity benefits
 The employee should have worked for her employer at least 80 days in the last 12 months
 A woman could request her employer to assign her light work to avail maternity benefits. This request
should be made at least before 10 weeks of her date of expected delivery.
 The woman should produce a certificate 10 weeks before her delivery to the employer confirming her
pregnancy.
 The employee needs to give written notice to the employer before 7 weeks of her date of delivery
regarding her absence period.

2. Benefits of Maternity Leave

 Employees are entitled to get paid while they are on maternity leave
 The compensation is calculated on her average daily earning over a 3-month period as soon as the
leave begins.
 The Act states that 10 weeks upto the date of delivery, no pregnant employee should be given difficult
tasks that may affect both mother and child.
 The employee has the right to the creche facility when she returns to her job after the maternity leave
if an establishment has more than 50 employees.
 Maternity leave is available for mothers adopting a new-born (less than three months old) and the
duration is 12 weeks from the date of adoption. There is no provision for adoption of older children.

23 | P a g e
Employee Referral Scheme

OBJECTIVE: To reward employees who shoulder responsibility of bringing top talent to the organization and
thus contribute additionally to the company’s profitability and growth.
WHO CAN REFER: All employees except those who have influence in the hiring process/decision like
HODs/leadership team, members of HR team and employees involved in the selection process for the position
in question.
FEATURES:
Hiring of a referred candidate will always be on merit basis
Any new joiner having a non-solicitation clause as one of the employment conditions in the previous company
would not be allowed to refer any potential candidate from the last employer until the cooling period is over
Referral Reward will be paid only upon selection and subsequent joining of the candidate
The referring employee and the referred candidate must be on the rolls of the company at the time of
stipulated disbursement of the Referral Reward
The employee will have to bear the taxes, if any, on the Referral Reward
There would be no recovery of Referral Reward in case a referred candidate leaves the company
This scheme is applicable for the position of supervisors and above (in production/product development)

REFERRAL PAYOUTS

RETAIL STORE OTHERS

POSITION REWARD POSITION REWARD
Stock boy/F C/Sr. F C INR 5000 Leadership (COO) INR 50000
ASM/SM INR 10000 Managerial ( HODs) INR 25000
Supervisory ( Deputy
Managers) INR 12000
Individual Contributors (
Managers) INR 7000
Assistants/Executive INR 5000

PAYOUT TERMS
Payout of the reward would be:
100% upon completion of 6 months or confirmation of employment (whichever is later)
Payout will be made within 30 days from the event of 6 months/confirmation
Payout will be taken care by the accounts team through cheque after deduction of taxes, if any

Note: The management may revoke this scheme at any given time without any notice or assigning a reason
thereof.

24 | P a g e
Employee Recognition Policy

Purpose:
To improve Employee Loyalty & Motivation

Objectives:
To provide guidelines to recognize specific, unique, value added and critical performance incidents within or beyond
expected & predefined performance objectives.

To align employee performance and achievements in line with Company’s Values & Mission Objectives

To reward these performance incidents in monetary or non-monetary terms indicating organizational recognition and
appreciation towards the employees

Scope Applicability:
All employees

General Rules:
Nomination :( Individuals/ Teams / Groups):
All Managers / Department Heads (along with inputs from immediate Superiors/ Reporting Authorities wherever
applicable) can nominate employees/teams who have shown reward-worthy performance, behaviour, skills or
competence.

Periodicity:
Assessments and recommendations can be done on Quarterly/Half yearly/Yearly basis and one employee can be
nominated multiple times indifferent quarters. Further spot achievement awards can be recommended during shorter
terms of quarterly basis. For ongoing performance achievements these awards can be assessed either half early or yearly
basis.

Benchmarking Reward-worthy Performance/Behaviour/Competence

In order to align employee performance to Company’s Values & Mission Objectives, the standards can be set against the
6 value & mission objectives. Employee show casing exceptional examples of following up these values can be considered
for Rewards & Recognition Program.

The 6 Values are

Accountability
Integrity
Creativity
Respect
Dedication
Success

25 | P a g e
Non Retail

Spot Excellence Award – The Extra Mile Award

Contribution beyond expected deliverables /Key Responsibility Areas which benefits the organization. This could be an
individual or team award. Frequency of the award – As and when the situation demands.

 Methodology: Function / Dept Head to make a recommendation to HR. Evaluation done by COO / CEO / HR.
 Reward & Award:

 Meal / Movie / Make over Vouchers / Fashion show passes (max limit of INR 3000/)
 Letter of Appreciation (by CEO)

BAY- Behind the Scene Award of the Year

Based on the Extra-Ordinary Performance of some employees (from preferably back office functions)

 Frequency – Half Yearly

 Methodology – Function Heads to send nomination along with justification to HR for evaluation.CEO / COO / HR
to evaluate.
 Reward & Award:

 Training Visit to Kolkata/Gurgaon production locations

 Letter of Appreciation (by CEO)
 OR Sponsorships for specific seminars / Trainings / Trade fairs.

Retail Operations

TOY Award ( Team of the year)

Based on Sales & Profitability numbers.

 Frequency - Yearly
 Reward & Award:

 Medals & Team Trophy (for individual members as well as whole team)
 Letter of appreciation from the CEO
 Recognition in Company newsletter / HO Notice Boards

SOY Award (Store of the year)

There will be 3 awards.

 Sales & Profitability numbers.

 Like to Like Growth
 Target versus Achievement

 Reward & Award:

26 | P a g e
  Medals & Team Trophy (for individual members as well as whole team)
 Letter of appreciation from the CEO
 Recognition in Company newsletter / HO Notice Boards
 Make over vouchers / Ritu Kumar Vouchers upto a max of INR 2500/each
 OR Team Dinner upto a max of INR 10,000/ for the team

Champion’s Trophy (Ri, RK& Label)

Based on sales & profitability numbers, like to like Growth & Target versus Achievement numbers

 Frequency : Annual

 Reward & Award:

 Medals & Team Trophy ( for individual members as well as whole team)
 Letter of appreciation from the CEO
 Recognition in Company newsletter / HO Notice Boards
 RK Merchandise / Vouchers
 AND / OR Kolkata/ Gurgaon production plant visit for SM / ASM / Sr FC

Program Ownership / Accountability

HR department will administrator the R & R program and any amendment in the policy will be intimated by the HR
department.

27 | P a g e
Rewards & Recognition
Benchmark
Award Name Criteria Rewards Frequency Evaluation
Values
# Meal /Movie Meal / Movie /
Spot Make over Vouchers / Fashion As & When
Contribution
Excellence show passes (max limit of INR the situation COO/CEO/HR
Beyond KRAS
Accountability Award Extra 3000/) Demands
Mile Award # Letter of Appreciation (by CEO)
Extra Ordinary #Training Visit to
BAY-Behind Performance of Kolkata/Gurgaon production
the scene employees- locations. # Letter Of
Half Yearly COO/CEO/HR
Awards Of the Back office Appreciation. # Sponsorships for
Year employees specific seminars / Trainings /
preferably Trade fairs.
Integrity # Medal & Team Player (For
Individual Members as well as
Retail -TOY- Based on sales Whole Team)
Team of the Profitability # Letter of appreciation from Yearly COO/CEO/HR
Year Numbers the CEO # Recognition In
Creativity company newsletter /HO Notice
Boards.
# Medals & Team Trophy (for
Sales & individual members as well as
Profitability whole team) # Letter of
Numbers appreciation from the CEO
Respect
Retail -SOY- # Recognition in Company
Store of the Like to like newsletter / HO Notice Boards, Yearly COO/CEO/HR
Year growth Make over vouchers / Ritu
Kumar Vouchers upto a max of
Dedication INR 2500/each
Target Versus OR # Team Dinner upto a max of
Achievement INR 10,000/ for the team
League Of
# Recognition co wide
Extra Ordinary Target Versus
Email/News Letter /HO Notice Monthly Operations/HR
Women- Achievement
Boards.
Stores
# Medals & Team Trophy (for
individual members as well as
Sales & whole team) # Letter of
Success
Retail - Profitability appreciation from the CEO
Champion Numbers, Like # Recognition in Company
Yearly COO/CEO/HR
Trophy to like growth newsletter / # HO Notice Boards,
RI,RK,LABEL ,target Versus RK Merchandisers
achievement /Vouchers, AND / OR Kolkata/
Gurgaon production plant visit
for SM / ASM / Sr FC

28 | P a g e
Disciplinary Policy

The House rule, service conditions, standing orders and the Code of Business Conduct defines the standard of
behaviour & states the relationship the Company expects to exist with and between its employees,
employers, suppliers & customers.
The standard procedure for taking disciplinary action is as follows:

Verbal warning:
For minor breach of Company rules or failure to achieve satisfactory standards, a verbal warning should be
given to the employee through the employee’s immediate supervisor. The details of the verbal warning i.e.
the incident, date time, fact should be recorded & forwarded to the Human Resources Department & to be
filed in the employee’s file.

Written Warning:
In an event of serious offence or breach a written warning should be issued by the Regional Manager at
locations in concurrence with the HR department at the corporate. All written warnings should be consulted
with the Human Resources Department.

The written warning should contain.

 A detailed description of the act or behaviour which prompted the warning i.e. the date, time, witness etc
 A disciplinary interview should be conducted based on the details.
 The objective opinion as to the consequences of the act i.e. client complaint, loss of profits etc.
 A clear statement should be recorded on letter which is signed by the employee, copied to employee, HOD
& personal file.

Grievance Procedure & Policy

The HR function will facilitate the Grievance Handling across organization with the help of concerned
department head / regional head.

1. Whenever an employee has grievances, he / she should initially discuss it with his / her immediate
supervisor to seek a solution.

2. If the grievances cannot be satisfactory settled by the immediate supervisor, & if the employee so request,
the supervisor will present the grievances to the Department Head/Regional manager who will arrange to
discuss with the employee concerned, within three days of original receipt of grievances.

3. If grievances cannot be settled in step 2 the employee may present the case to the HR head at the
corporate office in person or in form of writing.

4. Upon receipt of grievances, the HR head will carry out an investigation and endeavour to respond within
seven days. The HR head role is to advise on existing Company policy and past practices related to the
grievances, as well as reviewing the possible consequences of different course of action.

5. Confidentiality is important in the handling of all grievances.

29 | P a g e
Retirement Policy

Purpose:
Ritika Private Limited strives to make the transition from employment to retirement as smooth as possible.
This policy governs retirement procedures for all employees.
The age of retirement for all employees will be 60 years. They may be made to retire earlier also if found
medically unfit. The retirement age will not be extended unless desired and approved by the management in
writing. However, considering medical health of the concerned employee and the track record, conduct and
discipline of the employee, the period can be extended by three years each time up to the age of 72 years.

Scope:
This policy applies to all existing and future employees.

Procedures and Responsibilities

Notice of Retirement
Human Resources will notify employees of their retirement date 3 months prior to their 60th birthday. The
retiring employee’s last day at work will not be later than the last day of the 60 th birthday month.

Ritika Private Limited Property

All Ritika Private Limited property will be handed over by the retiring employee in accordance with the off
boarding Policy. If the retiring employee chooses to remain with Ritika Private Limited on a part-time,
contract, remote, or another alternative arrangement, Human Resources and IT will make and document
appropriate equipment and access arrangements.

Note: The Company reserves the right to alter this policy at any point of time. Any deviations or exceptions to
this policy will need to have Management approval (CEO/COO/HR).

30 | P a g e
Employee Separation Policy

Employment with the Company is at the will of the employee. However, no employee shall be terminated without first
having the facts surrounding the situation reviewed with the Human Resources department & approved by the
respective heads.
Employee termination, whether voluntary or involuntary will be handled in a professional & expedient manner.

1. ABANDONMENT OF SERVICE

In case of an absence of an employee, for a continuous period of Eight (8) days (including absence when leave though
applied for is not granted) and including holidays/off days coming between Two (2) working days of absenteeism or
overstaying the period of sanction of leave by Eight (8) days, without prior sanction, the concerned employee may lose
his lien on the employment and the same may automatically come to an end without notice or intimation. However
due to exigencies or occurrence of unforeseen circumstances and production of evidence to prove to the satisfaction of
the Company that the employee was stuck in emergency, the Company may consider otherwise.

2. TERMINATION

Except as provided specifically in the contract of service, if the company wishes to terminate the employment of a
confirmed employee, the Company shall serve upon the employee One (1) months’ notice in writing and /or salary in
lieu thereof. In case the service of temporary / casual / probationer employee is required to be terminated, no notice is
required.

The employment of a permanent employee shall be liable for termination on the following amongst other grounds:

a. Insanity, senility, physical infirmity, contagious or infectious diseases, continued ill-health, unfitness for
employment with the Company as declared by the Company’s doctor or for loss of confidence.
b. Conviction in a criminal case.
c. Engaging in vocation without the written permission of the Company or found to have been working
elsewhere during the period of Leave, in case the employee is on full time contract with the Company.
d. Loss of confidence by the Company in an employee due to leakage of information or propaganda
against the Company.
e. Insolvency.

3. RESIGNATION

Resignation is a voluntary separation initiated if an employee is desirous of leaving the services of the Company.
If an employee, who has been confirmed by the Company, wishes to resign from the employment of the company, must
serve One (1) months’ notice in writing and / or salary in lieu thereof. In case he fails to give the agreed notice period to
the Company, the company shall adjust the same with the full and final settlement of accounts with the employee.

4. PROCEDURE

The employee must give his resignation in writing to his/her immediate superior, indicating the date of resignation and
proposed date of release. It is the obligation of an employee to finish the assignment in hand before the specified date
of his release and hand over assignment to his superior.

31 | P a g e
On termination / resignation of his service, an employee shall give proper account of all identity cards, clothing, reports
and records, papers, books, tools, instruments and other property of the Company in his possession, custody or charge
before the last payment of the salary / full and final settlement. The value of all shortages and / or damages to the
employer’s tools, instruments and other property in the employee’s possession, custody, charge shall be recoverable
from him and without prejudice to any other mode of recovery, may be recovered by adjustment against whatever dues
are payable to him.

Employee will be required to compensate the Company for all loses / damages caused by him to the Company’s official
premises and all movable property therein.

Failure to comply with all or any of the above provisions shall entitle the Company to withhold the employee’s due to
make appropriate deductions there from and to take such other actions as may be deemed fit, which also includes the
initiation of Legal proceedings in the Court of Law.

The mandatory notice period mentioned in the letter of appointment has to be catered for. No leave shall be granted
during the notice period. In case if availed, will not be counted towards the notice period. An employee who wants to
be relieved prior to the completion of specified notice period should mention the same in the resignation letter.
However, it will be mandatory to serve at least the notice period as mentioned in the terms & conditions of the
employment.

5. NOTICE PERIOD

Shortfall in notice period will be adjusted against:-

a. EL in employee’s account provided, the employee completes 1 year of continuous service with the
company. EL will be adjusted to a maximum of 15 days in a year.

b. Full and final settlement of account will be prepared.

c. The employee’s manager in consensus with the concerned HOD will decide the date of relieving.
Resignation letter duly signed in acceptance along with the “Clearance & Relieving Certificate”
(Annexure 4A) duly filled must be sent to the HR Department.
d. The HR Department on receipt of resignation will arrange to conduct a formal “Exit-Interview with
the employee.
e. The HR Department will ensure that the Exit checklist is completed before relieving to ensure the
handover of all the relevant documents and assets of the Company to the concerned departments
with their No Objection Certificate duly acknowledged from the concerned departments.

The HRD Department will relieve the employee:-

With effect from the acceptance of reliving date & NOC approved by the function head and respective departments.
Recover access card, uniforms, any other belongings assigned to the employee. HR dept to proceed final clearance
along with the relieving letter and experience certificate after one month of resignation from the organization.

32 | P a g e
Store Pilferage and Stock Audit Policy

It is stated that the store staff is responsible for merchandise in the store and will be held responsible for any
loss of merchandise in the store, the management will reserve the right to recover the value of the loss, as
follows:
1. Loss goods which are at full MRP, the value for recovery will be as given in the stock transfer
for the articles i.e. 60% of MRP.
2. Loss of goods which have been marked down for any reason up to 40% as in # 1 above
3. Loss of goods marked down for any reason above 50%, Net price after discount will be the recovery amount
i.e. Whatever is the amount that the article would have been sold is the recovery amount from the shop.
4. All other costs like Octroi, Freight etc. of Loss of goods will be borne by the company.

W.e.f.01/05/2010, Petty Cash Book at Production Centre’s:

Procedure 1
Start maintaining manual petty cash book.

Procedure 2
Each and every cash receipt must be entered in the petty cash book with the counter sign by Accounts Head
with pen.

Procedure 3
Each and every cash payment must be entered in the petty cash book on daily basis with pen.

Procedure 4
All cash payments must be duly approved by the respective H.O.D., any cash payment, which is not approved
by H.O.D. will not be paid.

Procedure 5
Daily closing balance of the petty cash book must be tallied with the physical cash in hand, and if there is any
difference than the same must be noted on the petty cash book at the day end with pencil and proper
support e.g. IOU

Procedure 6
No fresh IOU will be allowed to any staff member till the last account is not clear by him/her and no staff
member is allowed to keep companies money for more than two days other than who is travelling. That
means each and every IOU must be clear within two days of issue of cash.

Procedure 7
The petty cash book along with the cash payment vouchers must be verified twice in a week without failure
and the closing balance of the same must be counter signed by Accounts Head.

Procedure 8
All the above procedure will be audited by the Audit Section and a detail report on the same must
be submitted to the management on fortnightly basis. Surprise physical cash audit can be done by the audit
33 | P a g e
section at any given time.
Notes on Procedure of monthly physical stock audit and reporting by stores

Note 1
In the morning of every last day of the month the physical stock audit will be done by PAN India stores.

Note 2
Store staff will take the print out of stock report of Production A and Production B and the same is required to
be exported in excel and save month wise in one folder on desk top.

Note 3
The store staff will start ticking the physical stock with the computerized stock report.

Note 4
After completing the Note 3 above, the store staff will have to furnish the following reports:

a) List of stock reported short in the stock audit, in the format given below in Note 10.
b) List of stock reported excess in the stock audit, in the format given below in Note 10.
c) List of stock reported untagged in the stock audit, in the format given below in Note 10.
d) List of stock reported with manual tags in the stock audit, in the format given below in Note 10.

e.g. if there is no discrepancy observed than it should be clearly written against the each above reports: NOT
REPORTED

Note 5
The store managers are requested to email all the information’s in Note 2 and 4 to respective regional
managers in the same day, latest by evening and may keep the hard copies of the same duly signed by all
store staff, at the store level. Please be noted, the hard copy of the stock reports is not required by the H.O.
Therefore, please keep the same with store level only.

Note 6
The Regional Managers are requested to forward the contains of Note 5 to H.O. for the attention to Retail
Operation Head/ Finance Auditor with her comments on the Variance Reports by third working day of the
following month and RM’s are requested to please mark the mail to the management and
accounts@ritukumar.com , it@ritukumar.com
Note 7
Retail Operation Head/ Finance Auditor and IT department with the active participation of the RMs will try to
reconcile the variance by digging into all the records including dispatches and sales relating to the particular
shop. This has to be done by the 7th of the following month.

Note 8
In case of shortage which is not resolved by the 7 th, accounts department in the HO will take cognizance and
create a recoverable value from the concerned shop. The same will be converted into amount recoverable
from the staff member/s after due consultation with the RM as to the method and time period of recovery. In
no case is the time period to exceed one year without clear sanction by management and in all cases full
amount of any incentive payable will first be adjusted against the recoverable amount. The time frame for the
34 | P a g e
final conclusion is one month. By the time the next stock taking takes place the matter of shortage discovered
in the previous month should have been resolved and paperwork completed.

Note 9
In case a loss is discovered before the stock taking date it has to be reported to RM with copy to HO (Retail
Operation Head/ Finance Auditor /IT/Accounts) within 24 hours and the recovery procedure instituted within
7 days of reporting.

Note 10
Below is the format for reporting of Note 4 above:

ITEM PRINT
S.No. CODE NAME COLOUR SIZE MRP QTY Remarks
1
2
3
TOTAL

Notes on Procedure of monthly physical stock audit and reporting by production / ware houses

Note 1
In the morning of every last day of the month the physical stock audit will be done by PAN India Production
Centers and ware houses.

Note 2
Store staff will take the print out of stock report of Production A and Production B and the same is required to
be exported in excel and save month wise in one folder on desk top.

Note 3
Both the Production Centers and ware houses staff will start ticking the physical stock with the computerized
stock report.

Note 4
After completing the Note 3 above, the staff will have to furnish the following reports, duly signed by them:
a) List of stock reported short in the stock audit, in the format given below in Note 9.
b) List of stock reported excess in the stock audit, in the format given below in Note 9.
c) List of stock reported untagged in the stock audit, in the format given below in Note 9.
d) List of stock reported with manual tags in the stock audit, in the format given below in Note 9.
e) List of stock reported rejected out of finished stock, in the format given below in Note 9.

e.g. if there is no discrepancy observed than it should be clearly written against the each above reports : NOT
REPORTED
Note 5
The Production Managers are requested to email all the information’s in Note 2 and 4 to H.O. for the

35 | P a g e
attention to Bikash/Shanker with his/her comments on the Variance Reports by third working day of the
following month and Production Managers are requested to please mark the mail to the management and
accounts@ritukumar.com , it@ritukumar.com. and may keep the hard copies of the same duly signed by
person in charge of finished goods / dispatches. Please be noted, the hard copy of the stock reports is not
required by the H.O. Therefore, please keep the same in hard form at the production/ware house level.

Note 6
Audit Department (Bikash/Shanker) and IT department (Puneet Anand) with the active participation of the
Production Managers will try to reconcile the variance by digging into all the records including dispatches and
sales relating to the particular shop. This has to be done by the 7th of the following month.

Note 7
In case of shortage which is not resolved by the 7th, accounts department in the HO will take cognizance and
create a recoverable value from the concerned production / ware house. The same will be converted into
amount recoverable from the staff member/s after due consultation with the Production Mangers as to the
method and time period of recovery. In no case is the time period to exceed one year without clear sanction
by management. The time frame for the final conclusion is one month. By the time the next stock taking takes
place the matter of shortage discovered in the previous month should have been resolved and paperwork
completed.

Note 8
In case a loss is discovered before the stock taking date it has to be reported to RM with copy to HO
(Bikash/Shanker/IT/Accounts) within 24 hour and the recovery procedure instituted within 7 days of
reporting.

Note 9
Below is the format for reporting of Note 4 above:

ITEM PRINT
S.No. CODE NAME COLOUR SIZE MRP QTY Remarks
1
2
3
TOTAL

36 | P a g e