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 Rly. Q.
No. 638/2, Dondaparthy, Visakhapatnam, Andhra Pradesh, India, hereinafter
called the Party of the FIRST PART.
2. Smt. D.Sobha Rani, W/o D.Srinivas, Aged 25 yrs, presently residing at Rly. Q.
No. 638/2, Dondaparthy, Visakhapatnam, Andhra Pradesh, India, 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: -

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.

5. 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.
6. The profits and losses of the firm shall be shared or borne by partners as follows:
-

First Partner 60%.

Second Partner 40%.

7. The duration of the partnership shall be at WILL.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
 18. 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.
19. That none of the partners without the written consent of the partners shall: -

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.

20. Each partner has entered into this partnership in his individual capacity and shall:
-

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.

21. All the partners shall decide mutually all other matters for which no provision is
made in this deed.
22. 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.
23. Any dispute between the partners shall be referred to arbitration as governed by
the Indian Arbitration Act.
24. 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.