Shiva

Ref:ML/2006 April 17,2006 Mr. Balakondareddy C/o sri.Venkatappa House No. 133, 2nd Floor, 1st House, Sarakki, J P Nagar 6th Phase, Bangalore-560067 Dear Balakonda LETTER OF APPOINTMENT With reference to your application and the subsequent interview you had with us we are pleased to offer you the post of “ OFFICER – QUALITY CONTROL in the Grade of Officer – I” in our Organization, subject to your being found medically fit w.e.f. April 17,2006. a) You will be paid a salary as per the details given below Monthly Rs. Basic H.R.A Conveyance Total A LTA Bonus Total B Company Contribution to PF Cost To Company

-

Annual Rs.

3,600.00 1,440.00 960.00 6,000.00 x 12 = 72,000.00 3,600.00 3,600.00 79,200.00 5184.00 84,384.00

In addition to the above you are eligible for ESI and PF as applicable to the other staff and as per rules of the Company. LTA will be paid during the month of April. b) Your appointment will be on probation for a duration of 6 (Six) months at the first instance. You will continue to be probation until you are given a written confirmation will be subject to your satisfactory job performance, conduct and behavior. On confirmation of your service, if you wish to resign a minimum of one month notice is required for relieving you from the services. Salary in lieu of notice period is not acceptable to the Company. ….2

:2:

Please note that should you be found guilty of any misconduct or non-performance, your services are liable to be terminated by way of dismissal without any notice or any compensation whatsoever during the period of probation. c) This appointment letter is issued on the understanding that all the information given by you in your letter, application form and during interviews are correct, true and complete. If it is found at any time that the information given by you when seeking appointment is not correct and true and/or you have knowingly suppressed any significant information, the company will have the right either to withdraw the letter before you join services us or terminate your appointment with us anytime and without any notice or compensation, after you have taken up service with us. d) you will devote your whole time, energy and attention to your duties for promoting the interest of our factory and shall not without our previous express written permission, engage / interest yourself ( in whatever capacity) for carrying out any business /occupation/vocation/venture, part time/ fulltime/in ant indirect manner. e) You may please note that you will carryout the work as per the instructions given to you from time to time and that your services are liable to be transferred (either temporarily or permanently) to any department /division/establishment in India of this company without any extra compensation. f) You shall not utilize or divulge the company’s trade secrets or affairs to any persons/institutions without specific express permission from us. g) You will be responsible for safe keeping/return in good conditions and order, of all our property that may have been entrusted to you from time to time for study/care /charge. If you failed to account for any property that may be entrusted to you or for which you are responsible, we shall have the right to deduct the money value of such property from your dues apart from your right to take any appropriate action as we deem fit which please note. You will keep us informed of any change in your residential address or in your civilian status.

….3

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h) The other terms and conditions of your employment will be governed by the rules and regulations applicable for the time being to the Company’s staff in your category, subject to amendments / alterations, deletions etc. as the case may be from time to time. This letter of appointment is being issued in duplicate to enable you to sign and return the duplicate copy as a proof of your being explained/ understood the contents of this letter and acceptance of the terms and conditions.

for MEDREICH LIMITED.

G.V.RAMIREDDY EXECUTIVE VICE PRESIDENT- TECHNICAL

I accept the appointment subject to terms and conditions specified above : Signature

:

NAME

:

Date of Joining :

Date :

April 01,2007 Mr. Balakondareddy Bangalore. Dear Balakonda, Sub: Annual Performance Review 2006 – 07 After your hard work of one year, time comes when the Management has to play a role to review your performance and reward you suitably. We at Medreich are trying to change our performance review process in a very systematic manner compared to what we were doing in the past. Earlier the review was done by one or two odd people, but today the review is done by proper team which understands your job and hard work for the past year. We have made our best efforts to reward you suitably and we are pleased to inform that effective April 01, 2007 your salary has been revised as per the annexure attached an increment of Rs. 2500 /- per month. It is possible that someone’s review may not be 100% correct and particularly in case been people have worked for a shorter period in the organization but going forward the performance will not be hidden and true performers will be rewarded definitely in the next review. Such chance are very rare, but it possible and therefore we request all of you and in particular the new comers to have patience and continue their good performance. Medreich, as a Company would like to deliver the best quality products in the market who can achieve this only with your 100% contribution and full support. More than the salary and the profits of the Company, the Company’s goodwill is at stake and therefore any failure to deliver quality products cannot only harm the company, you as individual but also the humanity at large. Quality does not means only factory manufacturing a good product, but each department from purchase to Logistics have to follow GMP in the best manner with no short cuts. Our performance as Company so far has been good but not the best. In today’s competent scenario only the fittest will survive and the rest will have to take a walk. The management will extend its full support to enable you deliver quality products. Unless and otherwise the difficulties are expressed, and looked in the right forum, it will be difficult to help you and the company. .…2/-

: 2: The Management is also trying to bring major changes in the organisation structure which will bring in new thinking and transparent sharing of the future plans of the Company. One of the loopholes which exists in the Company is incomplete responsibility and therefore half completed jobs which are creating a lot of problems. It is very important for you as individuals you should take more responsibility and keep your seniors informed in case there are difficulties in completing the job. This will not only help the Company but also enlighten and improve your career growth. It is proven in the past that changing the jobs will not bring any good results in our career growth in the long run but consistent performance and ownership will take you to career heights. Each one of you needs to accept bigger roles and ask for more challenges. This will help you as well as the Company to keep motivated. Self motivation is the best motivation. With all the above facts, Medreich has frozen its plans to move forward and plan for a much bigger growth globally. You will be an integral part of this plan. We have worked out a 3 year future plan for the Company and the Company is poised for a big jump. We want all of be the part of this growth plan and stay with us to reap the benefits of the growth of the Company. Management will certainly recognize the people who have contributed for the growth of the Company in the long run. We are confident that you will be an important and integral part of team Medreich and the Management assures you that we will win the world together. We need your cooperation to grow together. Thanking you,

V MADHUSUDAN EXECUTIVE VICE PRESIDENT - TECHNICAL

ANNEXURE - I CONFIDENTIAL Name Employee Code Designation

: : :

Basic HRA Conveyance Total A LTA Bonus Total B Company Contribution to PF Cost To Company

: : : : : : : : :

Balakondareddy.A 2646 Officer – Quality Control Monthly 5000 2000 1500 8500

Annual

102000 5000 5000 112000 7200 119200

7th June 2008

REF:ML/INC/08

Mr. Balakondareddy Bangalore. ‘WINNING TOGETHER’ Dear Mr.Balakondareddy, You have completed one more year of service successfully with Medreich. We thank you for your valuable contribution towards this. However,there are many areas to improve in terms of maintaining 100% quality standards not only in the production units but also in the operational areas. Costs are going up everywhere adversely affecting viability of the Organisation.This year we would only way to remain viable and successful in future.Every one of you should take the ownership and reduce the cost in your areas of operations. As you are aware, recession has started in the IT/ITES Industry, where they have already reduced the salaries and thnking of increase in the working days from five to six. Fuel prices have also increased leading to increase in the inflation. We know we can not increase our selling prices, still, we have decided to compensate you suitably to face the inflation. We also would like to reiterate that non-performers have no place in the Company. Although the number of non-performers has come down, Still there are some people who are below the line and I am advising all those people to decide to pull up their socks and improve if they have to remain in the Company. Now I sincerely hope from this year onwords whoever is going to be there in our company will be a performer only. Keeping the present market salaries in mind,this year too we have continued the MARKET CORRECTION . This has been done to reconfirm our faith & confidence in you for having remained with us and also to reward people as per market trend.Accordingly,you will be getting a market correction of Rs.750.00 and an increment of Rs.1000.00 totalling to an overall increment of Rs.1750.00 effective from April 1,2008.You have been promoted as “OFFICER-QUALITY CONTROL” in the grade “OFFICER-11”, Your salary has now been revised as per the details mentioned in the annexure. We hope you will appreciate our efforts to reward you suitably and start giving better performance during this year too. My best wishes to you and your family!

V MADHUSUDAN EXECUTIVE VICE PRESIDENT - TECHNICAL

ANNEXURE - I CONFIDENTIAL NAME

:

Mr.Balakon dareddy

EMPLOYEE CODE

:

2646

DESIGNATION

:

OFFICER – QUALITY CONTROL Monthly

Annual

6000 2400 1850 10250

123000:00

Basic HRA Conveyance Total A

: : : :

LTA

:

6000:00

Bonus

:

6000:00

Total B

:

135000:00

Company Contribution to PF

:

8640:00

Cost To Company

:

143640:00

Note : 1. please note that Medical and vehicle Maintenance is a reimbursement aginst bills. In Case bill are not submitted, the same would be treated as taxable Income. Vehicle Maintenance includes repairs & maintenance and Drive Salary, 2. Veichle Maintenance attracts Fringe Benefit Tax (FBT).