EDIT:
So I applied for the visa.
Here is what I submitted, and the experience of the visa application. First of all, thanks a lot to all those who provided valuable suggestions - @simbabque, @phoog
I submitted following
1.Passport and visa(german)
2.Work contract (German original and English translated)
3.Salary statement(German orignial and English translated)
4.Bank statement (in German WITHOUT translation)
5. City Registration (in German WITHOUT translation)
One caution to all who apply in Germany : The visa application centre has no role in providing any help on which documents to submit. You have to decide yourself and give them all what you think is necessary for the application success. The application centre just takes all the papers that you give, put them in a cover, and send it to the UK. They do not review, do not ask for any document. This is entirely our personal responsibility. It is also well stated by them. So in the end cannot blame anyone if you are not well informed with the process.
I received the visa after two weeks.
Here is my conclusion.
As long as the embassy is convinced that your application is genuine, there is no issue with the visa application process. I found the entire process quite straight forward and logical.
I decided to translate work contract and salary statement, as an Officer reading the document in German clearly would have no clue as to what is written in the contract, or what the numbers mean in the salary statement.
For the bank statement, it is very easy to skim through it and clearly see the monthly incoming of the salary and the expeditures. This , according to my logic did not need a transaltion, and I was proven right!!
Also, the city registration document, is to verify the address of your stay. Here I took a chance, but as long as you have the same address in all other documents submitted by you (german visa, bank statement, work contract, salary statement) , this is clearly enough.
I did not book any flight, nor submit any flight details.
This also does not make any sense , without having the visa.
Just for credibitlity of my intended dates of travel, I booked a hotel, with an option to cancel any time. Also I submitted a short itinierary of what I plan to do during my visit(this is inside the application).
All in all, the visa application is quite straight forward and logical, as long as you stick to their requirements.
I wish all goood luck pursuing the same.
Now I am looking forward to my visit in the UK for the Holidays.
Cheers Everyone!!