ADARSH GROUP

10, Vittal Mallya Road Bangalore - 560 001, .

Ph : 91-80-41343400 Fax : 22218565 www.adarshdevelopers.com

ADARSH GROUP

Service Conditions

INTRODUCTION:

These “RULES AND REGULATIONS OF SERVICE” shall apply to allEmployees of the Company whose conditions of service andemployment are not governed by the Model Standing Orders orStanding Order certified under the “Industrial Employment (StandingOrder) Act, 1946

In the event of appointment letter, agreement or contract specifying acondition of services other than “Rules and Regulations of services”mentioned here under, by way of alteration, addition or deletion, onlysuch alteration, addition or deletion shall prevail and be applicable tothe Employee.

1. DEFINATIONS:

In theses “ RULES AND REGULATION OF SERVICE”, unless the contextrequires otherwise:

1.1 “Company” shall mean Adarsh Developers, Adarsh Realty andHotels Pvt Limited, Akarsh Infotech and Infrastructure and allits subsidiary companies existing or formed in future, all itsHead Office situated at No. 10, Anand Bhavan, Vittal MallyaRoad, Bangalore – 560 001, regardless of where its divisions,Establishments, Site Office, Branches, Marketing Office,Project Location, Zonal and Regional Offices etc. are situated.

1.2 For purpose of these “ RULES AND REGULATIONS”,“Employee” shall mean and include all those to whom these“RULES AND REGULATIONS” have been made applicableeither through appointment letter or by a separatecommunication and shall also include those who arepromoted from the category to which Standing Order wereearlier applicable.

1.3 “Management” means Chairman & Managing Director /Managing Director(s) / Director (Project) / ExecutiveDirector (s) / Managing Partners / President and CEO or any otherperson / persons authorized by the Chairman/ ManagingDirector of the Company.

SERVICE CONDITIONS

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1.4. Unless specifically stated to the contrary, the masculine shallinclude the feminine and the singular shall include the plural,where relevant.

RULES AND REGULATIONS OF SERVICE

2. RESIDENTIAL ADDRESS: Employee shall furnish correct residentialaddress to the management while in the employment. Any changein the address should be intimated forthwith. Even when Employeeis on leave, he / she should not leave the station without intimatingthe Management, and also give the correct address / contactnumber at which, the Management can get in touch with theemployee in case of emergencies and exigencies.

3. RECORD OF AGE / DATE OF BIRTH: Every employee appointed to aservice or a post in the Company, should at the time ofappointment declare the date of his / her birth by the ChristianEra with confirmatory documentary evidence, such as, acertificate from an educational institution (matriculation orschool leaving certificate), Municipality or Registrar of Birth's andDeath's, such certificate or proof of Date of Birth is deemed to beauthentic proof regarding his / her date of birth and it shall not beamended or modified by the employee at any time.

4. PROBATION PERIOD / TRAINING PERIOD / CONFIRMATION: Allnew appointments and promotions, including those from categorycovered by these “RULES AND REGULATIONS” of service are subjectto a period of probation/ training specified in the appointmentletter / promotion orders.

The Management, at its discretion, may also waive the period ofprobation / training. The Management, may in writing, extend,shorten or confirm the period of probation / training or revert theemployee to his original post, as the case may be. During the periodof probation / training or any extension thereof, the appointment /promotion may be terminated / cancelled in writing by theManagement, without giving any reason. In the event oftermination of employment of a fresh appointee during the original/ extended period of probation, the Management may:

a. Give notice period specified in appointment letter or theperiod mentioned in Clause 24.2

b. Give pay in lieu of notice period orc. Terminate the employment without notice, if there is no

stipulation of notice period in the appointment letter, attheir discretion.

The employee may also, during the original / extended period ofprobation / training, leave the service of the Company bycommunication in writing without assigning any reason, inwhich case, he / she shall adhere to the notice period, if any,mentioned in the appointment letter or under Clause 24.2, ormay give pay in lieu of notice period.

5. PAY AND ALLLOWANCES: The pay and allowances attached to thepost to which the employee is directly recruited, shall beindicated in his / her order of appointment or by means of aseparate order, circular, which may be issued by the Company fromtime to time.

An employee, already working in a Non – Management Staff cadrein the Company, when promoted to the Management cadre, theManagement shall fix the remuneration as per the grade in whichhe / she is appointed and a specific order indicating the terms andconditions of employment would be issued to the employee.

6. DEPUTATION, TRASFER OR LOAN OF SERVICE: The employee, who isgoverned by these service conditions, is liable to be transferred bythe Company, to any of its units of operation anywhere in India oraboard. The Management reserves the right to send the employeedeputation, lend or transfer the service of the Employee, not onlywith in the Company to any place in India, but also to theemployment of any of its subsidiary or associated Companies. Inthe event of such deputation, lending of services, or transfer, theemployee shall abide by the rules, regulations and serviceconditions, as applicable in the unit or place to which he / she isdeputed or transferred or his / her services are lent.

An employee, being sent aboard by the Company, shall abide byrelevant policy. Management Staff deputed outside for work, may

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be given Deputation allowance, if required, at the sole discretion ofManagement, from time to time, considering various parameters ofsuch deputation.

7. SUBSCRIPTION TO PROVIDENT FUND: An employee governed bythese Rules will be required to contribute towards the ContributoryProvident Fund, in accordance with the Provident Fund Act and theRules applicable to him / her.

8. GRATUITY: An employee, to whom these Rules are made applicable,either through direct appointment or through promotions from adifferent category, shall be entitled to gratuity equal to 15 days'emoluments, consisting of Basic Pay and Dearness Allowance, ifany, for each completed year of service, in accordance with thePayment of Gratuity Act, 1972 or the Gratuity Rules there under.

9. AGE OF RETIREMENT / SUPERANNUATION: All employees, to whomthese Rules are made applicable, either through directappointment or through promotions from a different category shallretire at the age of 58 years. The Company will consider extensionof service, in cases considered appropriate by the Management andthe tenure of extended service shall be notified to the concernedemployee through a separate communication. Such employeesshall be required to undergo medical examination before the tenureof their service is extended on attainment of the age ofsuperannuation by them, and may be asked to get medical fitnesscertificate on an annual basis.

10. INCREMENT IN SALARY AND PROMOTIONS: The periodicalimprovements in the remuneration plan of the employee governedby these Rules and Regulations and also his / her promotion tohigher positions in the Company, are not automatic, but willdepend on the employee's contribution to the growth of theCompany and the results achieved by him in the sphere of activitiesassigned to him / her, as assessed and evaluated by theManagement.

11. PHOTO IDENTITY CARD: Every employee shall be provided with an

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employee no. and the photo identity badge which needs to becarried during the working hours of the Company and the same tobe surrendered when employment closes.

12. LEAVE AND HOLIDAYS:

12.1 The Leave Rules framed by the Management from time totime will govern the leave and holidays for the Employees.The eligibility of leave for the new recruits will be madeknown during the time of joining.

12.2 If an employee remains absent for a period of eightconsecutive working days, without permission / sanction ofleave or overstay sanction of leave for eight consecutiveworking days, employee shall lose his / her lien on his / her joband shall be deemed to have abandoned his / heremployment voluntarily, terminating his / her servicesthereby.

13. ATTENDANCE / PUNCTUALITY / LATE COMING: The employee shallnot absent himself / herself from his / her duty without propersanction of leave from the Authorized person. The ordinary workinghours will be as specified by the Management, but the employeesshall, if and when so required by the Management, work for suchfurther period over and beyond such normal working hours.The employee shall come a few minutes earlier than the scheduledtime, and thereby, set an example to others, especially those whoeither work under him / her or report to him / her.

14. SEARCH: The Management has the right to search employees asand when they so decide and at such times, the employees shallfreely allow themselves and their vehicles to be searched bypersons authorized by the Management. The employees,when provided with Identity Badges, shall wear the same duringthe entire spel l of working hours . Wherever theManagement provides / prescribes uniforms to the employees, theyshall wear the same during the entire spell of working hours.

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15. TRAVELLING ALLOWANCE: The Travel Policy of the Company willgovern the employees, which will be in force from time to time, forundertaking official tours outside their Headquarters.

16. DUTIES AND OBLIGATIONS: Every employee shall at all timesmaintain absolute integrity and devotion to duty and conducthimself / herself in a manner conducive to the best interests,credit and prestige of the Company.

All employees shall be bound to observe all safety rules notifiedfrom time to time and the safety devices / equipment as and whennecessary. Breach of this order shall make employee liable formisconduct in as much as they should be liable to punishment asper these rules. And also shall insist the contractors & visitors toobserve the same.

17. DISCIPLINE:

17.1 No employee governed by these Rules and Regulations shalltake part in agitations, strikes etc.

17.2 They shall not participate in Radio or TV Broadcast or keepconnections with the Press on matters concerning theCompany, except with the prior approval of the Management.

17.3 They shall not publish information, which is gathered in theofficial capacity without the Management's prior permission.

17.4 No employee, except with the prior sanction of theManagement, shall engage, directly or indirectly, in anytrade or business or undertake any employment.

17.5 An employee, however, may without prior sanction of theManagement undertake honorary work of a social orcharitable nature or work of a literary or artistic character,subject to the condition that his official duties do not therebysuffer. However, they shall discontinue such work, if in theopinion of the Management; such activity interferes with theassigned work.

17.6 No employee by himself / herself and / or any of his / herfamily members and relatives shall have any connection with

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the Company as Suppliers, Dealers, Agents, Consultants, orContractors in their individual capacities without priorconsent or approval in writing from the Management.

18. MISCONDUCT: If at any time, the employee is found to be guilty ofany misconduct, the Management shall be entitled to dismisshim/her from service, without any notice or compensation in lieu ofnotice, and in such a case, the service of the employee shall cometo an end and stand terminated with effect from the date ofDismissal / Discharge / Termination. Pending an enquiry into suchmisconduct, the employee shall be liable to be suspended from

service on loss of salary, allowance, perquisites, etc.

Without being exhaustive, the acts of misconduct for which theemployee shall be liable to be dismissed from the service of the

Companyare:

18.1 Willful insubordination;18.2 Unsatisfactory performance of assigned duties and

Responsibilities;18.3 Theft, fraud breach of trust or dishonesty within the

Company's premises or in respect of any of the Company'sbusiness or property;

18.4 Willfully or otherwise causing loss or damage to Company'sproperty;

18.5 Habitual late attendance and / or absence without leave;18.6 Attempting to obtain leave of absence on false pretext or any

benefit under false pretext;18.7 Loitering, idling or wasting time during working hours or

staying within the premises of the Employer after authorizedhours of work without permission;

18.8 Habitual neglect of work or negligence in work;18.9 Non-observance of safety measures or failure to use safety

appliances or disobedience of a safety instruction by thesuperior;

18.10 Handling or attempting to handle any machine, equipment,apparatus or vehicle not entrusted to the charge of theemployee;

18.11 Carrying employer's goods, files or office documents to the

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house / home or any other place outside the work premiseswithout prior permission in writing from the Management;

18.12 Photo or otherwise copying and taking the extracts ofofficial documents with a view to keeping / storing them athome or to maintain files at home will be considered breachof trust;

18.13 Doing private or personal work within the work premiseswithout the prior permission of the Management;

18.14 Unauthorized use of any of the Employer's facility /equipment or any other thing for personal use;

18.15 Leaking any information relating to official matter tooutsiders, as they are confidential;

18.16 Misrepresentation to the Company of any fact or documentsabout the employee ie., giving false information regardingone's name, father's name / husband's name, date of birth,qualifications, details of previous service / salary particulars,address etc…. at the time of securing employment orthereafter;

18.17 Interference, tampering with records, attendance register,etc… either pertaining to himself / herself or to any otheremployee;

18.18 Lending / borrowing money or having any financialtransaction with the Co-employee / Outsider, within thepremisesoftheCompany;

18.19 Taking / giving bribes, or agreed commission or discount orany illegal gratification, whatsoever, in cash or gifts;

18.20 Reporting to work under influence of alcoholic drinks, drugsor narcotics;

18.21 Disorderly behavior or such acts subversive of discipline andefficiency.Conductdetrimental tothe interestoftheCompany;

18.22 Refusal to work on a job or a mission, which does not call forany additional skill or experience and can be done by theemployee without adversely affecting his service conditions;

18.23 Interfering in the work of other employees and / or theManagement;

18.24 Guilty of any act involving moral turpitude;

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18.25 Participation in a strike, or abetting, adopting go-slowmethods, inciting others, instigating others, or acting infurtherance thereof whether alone or in combination withothers;

18.26 Intimidating or threatening or abusing or assaultingemployees whether within the premises or outside; whetherwithin duty hours or outside duty hours;

18.27 Gambling or playing cards, video games, prono sites, usingoutbound networks, spitting, gossiping, sleeping or dozingwhilst on duty etc…. within the premises of the employer;

18.28 Publication of any article relating to the work of theemployer without obtaining prior written permission of theEmployer;

18.29 Refusing to undergo training as and when required by theManagement;

18.30 It is considered breach of trust if an employee comes to knowabout the breach of trust done by another staff member, andif thismatter isnotdisclosed immediatelytotheManagement;

18.31 Breach of any of the "RULES AND REGULATIONS OFSERVICE";

19.32 Any other acts subversive of Discipline which is notspecifically mentioned above;

19. PREVENTION OF SEXUAL HARASSMENT: Sexual harassment by anyemployee of the Company is strictly prohibited. Sexual harassmentof any individual violates such individual's fundamental rights togender equality, to life and liberty and to work with human dignity,and is further in clear conflict with the Company's commitment andpolicies to create and maintain a work environment that is freefrom all such unlawful discrimination. This prohibition is equallyapplicable to both men and women, and to same or opposite genderrelationships, relationships between supervisors and subordinates,and relationships between peers.

For this purpose, “sexual harassment” includes unwelcome sexuallydetermined behavior/conduct (whether directly or by implication)such as:

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19.1 Physical contact and advances;19.2 A demand or request for sexual favors;19.3 Sexually colored remarks;19.4 Showing pornography; or

Any other unwelcome physical, verbal or non-verbal conduct ofsexual nature, where submission to or rejection of suchbehavior/conduct is made, explicitly or implicitly, a basis foran employment/ promotion decision, or a term or conditionthereof; or where such behavior / conduct directed against anindividual persists despite its rejection; or where such conduct hasthe purpose or effect of unreasonably interfering with anindividual's professional performance or of creating what areasonable person would view as an intimidating or hostileenvironment.

Each employee is expected to fully read and understand thecontents of the Company's Prevention of Sexual Harassment policy,which lays down the procedures for raising complaints, as well asfor resolution, settlement or prosecution, of such acts of sexualharassment. Any employee found guilty of sexual harassment shallbe liable to disciplinary action and penalties as set out in thePrevention of Sexual Harassment Policy and/or these “RULES ANDREGULATIONS OF SERVICE”.

20. NON-DIVULGENCE OF TRADE SECRETS, ETC: No employee, eitherduring the continuance of his / her employment or thereafter,divulge, disclose or impart to any person / organization, anymanufacturing/construction process or any informationconcerning the Business / Finances of the Company or any dealings,transactions, or affairs of the Company, which come to his/herknowledge during or in the course of his/her employment.

21. WILLFUL WASTE, OR DAMAGE TO THE PROPERTY OF THECOMPANY: The employee shall not willfully do any act ofcommission or omission, which will result in damage or loss to anyproperty or goods belonging to the Company. The employee shallnot lend property or goods entrusted to his charge, to any person

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without the consent of the Management. The employee shall pay /reimburse to the Management the cost of any damage or losscaused by his/her act of omission or commission to any property,goods or articles belonging to the Company and the Management'sassessment of such damage or loss shall be final and binding on theemployee. This will be without prejudice to the Management's rightto take such disciplinary action against the employee, as itconsiders necessary.

22. DISCOVERIES, INVENTIONS AND PATENTS: If at any time during thetenure of employment or thereafter, the employee shall make,perfect, discover or acquire any new invention whatsoever, or anyimprovement or improvements in or relating to the design and / orprocess and / or finishing of goods either patented or patentable orof any interest therein, shall forth with communicate the same tothe Company in whom the same shall thereupon vest absolutelyand who may with or without the concurrence of the employee,obtain Letters Patent in respect thereof; and the employee shall doall things necessary for obtaining and legally vesting such LettersPatent in the Company or its nominees and the remuneration (ifany) paid to the employee for any such invention shall bedetermined by the Management, after consideration of eachparticular case. However, where such invention or discovery isconsidered by the Management as either directly or indirectly notconnected with its process by it or services rendered by it, theManagement will permit the employee concerned to obtain LettersPatent in his/her own name, if it is found to be not against theinterests of the Company.

23. STRIKES, LOCKOUTS, LAY OFF & CLOSURE ATTENDANCE: Theemployee shall attend duty during period of strike, lockout, layoffand closure, unless instructed to the contrary in this respect. Inaddition, he/she shall observe working hours other than normal,depending upon exigencies during such strike, lockout, layoff orclosure and shall be liable to perform such duties andresponsibilities other than those performed by him during normaltimes, as may be assigned to him by Management. However, this

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does not preclude the right of the Management to reduce thecompensation of the employees governed by these Rules andRegulations to an extent considered necessary on such occasions.

24. TERMINATION OF EMPLOYMENT IN CERTAIN CASES:

24.1 Physical and Mental Fitness-Medical Examination: TheManagement, may at its discretion, direct the employee to beexamined by the Company's Medical Officer or by a MedicalPractitioner specified by them in this behalf. If any suchexamination shows that the employee is suffering from anydisease or complaint which is likely to affect his/her work /performance / co-employee and which is incurable or notcurable within a period of 6 months, the Management shall beentitled to terminate the services of such employee aftergiving ONE month notice, or pay in lieu of notice.

24.2 The services of the employee can also be terminated underother circumstances, by either party by giving ONE monthnotice as specified in the appointment order of the employeeconcerned, or pay in lieu of notice, in the case of a confirmedemployee, and no notice in the case of a newly recruitedemployee on probation. The Company can however, waive thenotice period at its discretion to be given by the employee,who is desirous of leaving the Company. Pay in this contextshall mean only Basic Pay and Dearness Allowance, if any,which he was drawing at the time of leaving, or as specified inthe Letter of Appointment.

25. GENERAL: The Management reserves the right to amend, alter,modify or totally withdraw this "RULES & REGULATIONS OFSERVICE" at any time.

NOTE: For detailed reference on Policies governing Rules andRegulations, please refer the Company's HR Manual