Partnership Deed.

This Deed of Partnership is made on this July 14th, 1999, between: -

  1. Sri. D.Srinivas, S/o D.K.Mohan Rao, Aged 31 yrs, presently residing at D.No. 19-27-11, VUDA Phase-2, Gandhi Nagar, Gajuwaka, Visakhapatnam, Andhra Pradesh, India - 530 044, hereinafter called the Party of the FIRST PART.
  2. Smt. D.Sobha Rani, W/o D.Srinivas, Aged 25 yrs, presently residing at D.No. 19-27-11, VUDA Phase-2, Gandhi Nagar, Gajuwaka, Visakhapatnam, Andhra Pradesh, India - 530 044, hereinafter called the Party of the SECOND PART.

WHEREAS the above parties of this Deed are desirous to carry on business of Construction, Supply of Engineering Items, Fabrication, and other related business under the name and style M/s. LORVEN CONSTRUCTIONS.

WHEREAS all the parties to this deed thought it fit to reduce the terms and conditions of this partnership business in writing.

Now this deed witnesseth and all parties hereto mutually agree that the following conditions shall govern the partnership business.

  1. The partnership business shall come into effect from July 14th, 1999.
  2. The partnership business shall be carried on under the name and style of M/s. LORVEN CONSTRUCTIONS, or such other name or names as the partners may mutually agree upon from time to time.
  3. The partnership business shall be conducted and carried at Visakhapatnam or at such other place or places as the partners may decide from time to time.
  4. The Business of the Partnership shall be: -
  5. a) To carry on business of Construction, Supply of Engineering Items, Fabrication, and other allied activities.

    b) To carry on such other business whether connected or unconnected with the existing nature of business as the partners may mutually agree upon from time to time.

  6. The Capital of the firm shall be provided by the partners in such manner as they mutually decided and according to the needs of the business.
  7. The profits and losses of the firm shall be shared or borne by partners as follows: -

  8. First Partner 60%.

    Second Partner 40%.

  9. The duration of the partnership shall be at WILL.
  10. The party of the first part Sri. D.Srinivas hereto shall be the Managing Partner of the firm who shall manage all the business activities to the greatest common advantage of the firm.
  11. The Managing Partner is authorized to borrow or raise money on behalf of the firm as is expedient from any party or banker and the interest and other charges thereon shall be borne by the firm.
  12. The funds required for the purpose of partnership business shall be contributed or arranged by the partners in such manner as may be mutually agreed upon. Interest for such sum shall be @ 18% per annum, or such rate that is prescribed Under Section. 40(b) of the Income Tax Act - 1961, or any provision that may be in force for the purpose of Income Tax assessment of the partnership firm account. The partners shall be at liberty to increase or decrease the above rate of interest from time to time.
  13. All outstanding and expenses of the partnership firm and all losses, including interest and principle, shall be payable first out of the profits, next out of capital, and in the case of further deficiency, by the partners in the shares in which they are entitled to the net profits of the business.
  14. All necessary books of account shall be kept and maintained by the firm at the main place of business and each partner shall be at liberty to inspect them and to take the copies thereof at all reasonable times.
  15. Bank Accounts shall be opened in the name of the Firm with any one or more Banks including current account whether in deposit or overdrawn and all types of accounts shall be operated on behalf of the partnership by any one of the partners individually. They shall be empowered on behalf of the firm to execute, endorse and discharge all types of negotiable instruments.
  16. Sri. D.Srinivas shall be the Managing Partner of the business of partnership and has agreed to divert his time and attention to the said business and shall manage all the business activities to the greatest common advantage of the firm. It is hereby agreed that in consideration of the total diversion of his time to the business of partnership he shall be entitled to draw remuneration of Rs. 5,000/- P.M.
  17. Sri. D.Srinivas shall be the Legal Advisor and has agreed to divert his time and attention to look after Overall Administration, Drafting, Legal Affairs, and to look after Accounts, and to maintain Records of the Firm Etc. It is hereby agreed that in consideration of the total diversion of his time to the business of partnership he shall be entitled to draw remuneration of Rs. 5,000/- P.M.
  18. Sri. D.Sobha Rani shall be the Field Manager has agreed to divert his time and attention to look after overall Administration and Supervision of work on site and manage men power on site. It is hereby agreed that in consideration of the total diversion of his time to the business of partnership he shall be entitled to draw remuneration of Rs. 5,000/- P.M.
  19. The statement of Assets and Liabilities after making the final adjustments shall be prepared at the end of the financial year and each party to the deed in token of their acceptance shall sign the same.
  20. The Accounts of the Partnership business shall be closed at the end of every Financial year ending on 31st March and it will be audited by a firm of Charted Accountants as required by the rules made under Income Tax Act or any other statutes in force. The net profit or loss so decided shall be adjusted to the personal account of the partners.
  21. That none of the partners without the written consent of the partners shall: -
  22. a) Sell, mortgage or otherwise alienate, assign or charge his/her share, interest in the assets or profits of the firm.

    b) Send money belonging to the firm except in the ordinary course of business and dispose of by pledge, sale or otherwise any part of the partnership property or profits, except in the ordinary course of business.

  23. Each partner has entered into this partnership in his individual capacity and shall: -
  24. a) Carry on business of the firm to its greatest common advantage, AND,

    b) Pay his separate and private debts and shall indemnify the other partners and the partnership assets against all proceedings, claims and demands in respect thereof by the partners in the shares in which they are entitled to the net profits of the business.

  25. All the partners shall decide mutually all other matters for which no provision is made in this deed.
  26. Any term of this deed may be varied, altered or amended mutually by the partners in writing, without execution of any fresh deed of partnership.
  27. Any dispute between the partners shall be referred to arbitration as governed by the Indian Arbitration Act.
  28. Subject to the provisions mentioned above, the partnership shall run in accordance with the provisions of the Indian Partnership Act - 1932, or any Law for the time being in force.

IN WITNESS WHEREOF, the partners have Signed this instrument of Partnership on the date mentioned above.

 

WITNESSES: -                                                                                                PARTNERS.

1.                                                                                                          1.

2.                                                                                                          2.

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