CONTEMPORARY WORLD

PROJECT: KHAADI
Submitted To: Dr. Tabassum Riaz
Submitted By: zoya safdar
Department: BBA1st (morning)
Roll No: F14-28
UNIVERSITY OF THE PUNJAB
JHELUM CAMPUS
 Imaginary Business Name:
Khaadi historically, it has been proved that “Business” is the
most powerful source of earning since
So I and my four friends will decide to start up a new business
of KHAADI outlet in jehelum.
Keeping our projects requirements in account we have to define
our business completely along with its structure, culture model
etc. in this project we have to explain our business, its needs
and requirement step by step. In this project we have first
discussed and introduced what the Khaadi is actually about.

Khaadi Collection:
Khaadi first opened its doors in 1998 in
Karachi, Pakistan offering customers kurtas
and loose fabric made from hand-woven fabric.
Shamoon Sultan, the chairman and founder,
had the intent of reviving the ancient craft of
the handloom and popularizing the traditional
medium in a contemporary manner. Khaadi,
which means “hand-woven”, has stayed true to
its name and continues to produce a fusion of
styles to complement both the east and west,
while still using hand-woven fabrics on select
products.
Khaadi defines its lines as Concepts and
initially had Prêt (Ready-to-Wear), Unstitched
(Fabric) and Man (Eastern Wear). Over the
years, Khaadi has introduced a number of new
Concepts including Khaas (featuring exclusive
and limited-edition pieces), Kids (for 2-12 year
olds), Accessories (jewelry, stoles and
handbags) and Home (featuring furniture,
bedding and bath items).
In 2010, Khaadi expanded internationally by
opening its doors in the United Arab Emirates,
first in Dubai and later in Abu Dhabi. In 2013,
stores opened in Kuala Lumpur, Malaysia and
London, England. The company continues on
its aggressive expansion strategy by opening
several retail stores in smaller cities of
Pakistan. The online store was launched in
Pakistan in 2014 and Khaadi will look to open
its digital doors to various countries
throughout the year.
PEST Analysis:
The first step to start any business is based on analysis. As
Khaadi in Jhelum and other cities, targeting people who love to
wear designer suits, so we will critically analysis the macro level
environmental factors commonly known as PEST Analysis which
measures trend and changes in the market, providing with
genuine factors to start an organization.

Discovery of Idea:
Me and my friends visited the Jhelum city and noticed that
big brands of dress collection are less as compare to trend of
people so here to start up this business.

Environmental Analysis:
To start a business it is necessary to analysis the
environmental factors which can affect our business. We
analysis the mega environment. It reflects the board and
conditions and trends in society within which an organization
operates.
It consist of five major elements
 Technological Element
 Economic Element
 Legal-Political Element
 Socio-Culture Element
 International Element

Technological Element:
First, we have to see toward technological element
which reflects current knowledge about production of
products and services. Trends changes with respect to time.
In this element we should keep in mind that we will use latest
technology for production.
Economic Element:
The economic element involves system of wealth
production, distribution and consumption. We analysis the
thing that how can we produce wealth in our business or in
which way we run our business to get maximum satisfaction.
Legal-Political Element:
The legal-political element refers to legal and
governmental systems within which an organized functions.
We analysis the trends in legislation, court decisions, politics
and government regulations. Because if we will not follow
the laws, rules and regulations government can make
restriction in the way to run business.

Socio-Culture Elements:
It Involves attitude values, norms, beliefs, behavior and
associated demographic trends typical of region. We have to
notice this element because if people’s taste change or
competitor strategies change it can effect our business. For
example our competitors in Jhelum city are Warda collection,
Gull Ahmed, and Tana Bana. So we can decide to be different
from them to run our business efficiently. We will offer up to
10% on the buying of any product.

Factor of Production:
A factor of production means input and finished good
means output. Input decides the quantity of output is output
which depends upon input. Input is the starting point and
output is the ending point of production process and such
input output relationship is called an production function.
All factor of production like.
1. Capital
2. Enterprise
3. Land
4. Labour
Factor of production include all the information about the
business. It includes that from where we get material?
Where, we sell it? Where we have our franchise’s building?
Who will involve in our business for purchase and sales? Who
will the employees? How much we spend our time and cash
to make it a successful business?

Capital:
When we got idea and we decided to open a franchisee
of Khaadi then we face a problem that is from where we get
the enough capital to start business? Capital means cash
which help us to buy land, building material which we
purchase to run our business. We get our capital from our
own saving and getting loans from bank and rest of the
capital we get from the third party by signing a contract to
return money after two years on 5% interest.
Enterprise:
Enterprise is the idea and innovation of a business.
Business and its concept are discussed in starting section.
This idea is on the basis of less branded competitors in a city.

Land:
Land is the primary and basic need for business’s physical
existence. We purchase a land near baba deewan shah hotel
opposite to the PUNJAB UNIVERSITY JHELUM CAMPUS which
covers the larger area.
Labour:
Employees are the primary necessity to make a business
operational. Our human resources are real and most important
asset that our business holding from regional heads, managers,
and salesman etc.
Appointment of employees is according to the business
philosophy and the selection criteria’s. These factors play a vital
role to run of Dress collection business.

Partnership Business: (particular partnership)

A partnership maybe formed for a particular business
adventure or undertaking such a partnership is called a
particular partnership. The firm is automatically dissolved at the
completion of the adventure or undertaking for which the
partnership was formed.

Partnership Deed:
Partnership deed also termed as article of partnership or
partnership agreement means written contracts between
partners to form a partnership. In Pakistan the partnership is
formed under the Act of 1932. The partnership Act 1932
neither describes any specific form of partnership deed nor
does it provides for contents of the deed. All rights and duties
are mentioned in it of partner which settled for the future.
Compulsory duties are mentioned in it. These duties are settled
for carry on business of the firm to the greatest common
advantage and to be just faithful to each other and full
information of all things which are affecting the business.

PARTNERSHIP DEED

This DEED OF PARTNERSHIP made this day of between hereinafter called the partners of the
first part and Second Part respectively
 AND

A company registered under the provisions of the Companies Act 1956 and having its registered office at
hereinafter called the party of Third part

WHEREAS the Parties of First and Second Part by virtue of their partnership deed dated
have been carrying on the business of manufacturing and marketing paints, colors and varnishes etc.
under the name and style of with factories at under the same name and
style.

AND WHEREAS the Party of Third Part Viz. the company is formed with the objects of
manufacturing dealing and marketing in paints, varnishes, colors etc.

AND WHEREAS the Party of the Second Part has expressed its desire and willingness through the
director to enter into Partnership and parties First, Second part have mutually decided that
the Party of the third Part shall be taken as Partner.

AND WHEREAS it is deemed necessary and desirable that a regular Deed of Partnership be
reduced in writing and executed on the terms and conditions mentioned hereunder.

NOW THIS DEED WINTESSETH AS UNDER: -

1. The Partnership shall come into effect from and shall be for an indefinite period unless it is
determined.

2.That the name and style of the Patnership firm hereby formed shall be with factories at
under the same names and style or with branch or branches at such place(s) as the parties may mutually
decide.

3. That the business of the Partnership Firm hereby formed shall be that of manufacturing and marketing
of paints, colors and varnishes etc., as hereto before. The parties may, however, with their mutual
consent embark upon a new line or lines of business and may open branch or branches or new factory.

4. That the amount standing to the credit of the personal accounts of the Parties of First and Second
Part in the books of above firm as on shall be treated as contribution by them to the capital of the
Partnership and the Party of the Third Part shall bring Rs. as his share towards the capital
of the firm.

5. That further finance required for the purpose of business of the firm shall be contributed by the
parties in such rate as may be mutually agreed upon. Interest at the rate of or at a rate as may
be mutually agreed upon between the parties from time to time shall be allowed on the capital standing
to his/her credit for the time being in the books of the partnership.

6. That the regular accounts books shall be kept in due course of business in which shall be faithfully
recorded all the transactions enter into by the firm and such books shall be closed on
or/on any other convenient or auspicious day as may be mutually agreed upon between the parties
hereto from time to time.

7. That on closing the account books in the aforesaid manner, a regular profit & Loss Account shall be
prepared and a balance sheet shall be drawn up.

8. That the Profits & Losses shall be divided between and borne by parties hereto in the following
proportions:

Partner % of share in Profits and Losses

9. That the partners will be paid a Salary of Rs.2500/- per month for the services rendered to the rim
and they will also be entitled to a bonus @ 12% on their salary.

10. That all the assets and liabilities of the firm as on tangible or otherwise, would be
taken over by the Partnership at its book value and shall be deemed to be assets and liabilities of this
Partnership and all the Parties hereto will have equal rights/liabilities thereon.

11. That all rights of the firm as on namely ISI marketing license, Trade marks, Sales Tax
registration, Telephone connections, Tenancy rights, Lease rights, Ownership right etc. shall be deemed
to be the rights of the partnership and all the parties hereto will have equal rights/liabilities thereon.
12. That each partner shall: -

(a) Diligently attend to the business of the Partnership and devote his/her necessary time
and attention thereto.
(b) Punctually pay her/his separate debts and indemnify the other partner and the Assets of
the firm against the same and all expenses therefore.
(c) Upon every reasonable request inform the other Partner of all letters, accounts, writings
and such other things which shall come to her/his hands or knowledge concerning the business
of the Partnership.

13.That neither Partner shall without the consent of the others: -

(a) Lend any of the money or deliver upon credit any of the goods of the firm to any
person or persons whom the other Partners shall have previously in writing forbidden
her/him to trust.
(b) Raise or advance any loan in the name of or on behalf of the firm.
(c) Assign, charge or transfer her/his shares in assets or profits of the firm.
14. That the account in the name of the firm shall be opened with the Banks or bankers as the
Parties may mutually decide and the same shall be operated upon by the Parties hereto singly.

15.That any partner may retire from the Partnership firm, hereby formed by giving two months notice in
writing to the others but none shall leave the firm until or unless all the pending commitments are
carried out, liabilities paid off, assets realized and accounts are rendered fully and settled finally to the
entire satisfaction of each of the parties hereto.

16.That the parties hereto may, however, with their mutual consent pay remuneration to any of the
parties hereto at a rate that may be mutually agreed upon between them from time to time. They shall
be at liberty to increase or decrease such rate of remuneration with their consent from time to time.

17.That in the event of death or retirement of any of the parties hereto the partnership firm hereby
formed shall not dissolve, but shall continue. The legal heir or the representative of the deceased shall
step into her/his shoes.
18.That upon the dissolution of the partnership in any even not hereinafter provided for the said
business, the assets, goodwill and liabilities thereof should absolutely vest on any one partner mutually
decided by the parties to the partnership.

19.That it will always remain open to the parties hereto to amend, annul or change any term or terms of
this Deed of Partnership in the course of its business and in that event of amending, annulling or
changing any term or terms of this deed of Partnership no fresh deed shall be required to be executed.

20.That without prejudice to the above terms and conditions the parties hereto in all other matters shall
be governed by the provisions of Indian Partnership Act, 1932.

21.That all the disputes or differences arising out of it and connected with the Partnership shall be
referred to the arbitrator in accordance with the Indian Arbitration Act.

IN WITNESS WHRE OF, the parties of the first and Second parts here have put their
respective hands on this DEED OF PARTNERSHIP on the day, month and year first mentioned above.

IN WITNESSES WHEREOF, the common seal of the Third Partner viz. was pursuance
to the resolution of the Board of Directors passed in that behalf on here into affixed in
the presence of and signed these presents in token thereof in the presence of the
Witnesses:

WITNESSESS: Partners

1.AMNA ABID

2.FATIMA TAHIR

3.IQRA NASIR
 Registration Of firm:-
Registration of firm is not compulsory. It is optional and it is up
to the partners that whether or not they get their firm
registered. However the partnership Act 1932 imposes some
serious disabilities on an unregistered firm. These disabilities
make it advisable for the partner to get their firm registered.
Any term and conditions regarding the business is written and
profit ratio and sometimes the duties of the partners are also
mentioned. A part from their compulsory duties mutual rights
and duties of partners depends upon contract between them.
After reading all the form the partners sign the form.
Registration Form
FORM NO. 1

THE PARTNERSHIP ACT, 1932

Application for registration of firm by the name M/s __________FRANCHISE
OF__KHAADI_______
_______________OUTLET
______________________________________________
Presented to the Registrar of Firms JHELUM Division, for filing by:
Members of ________________________________
We the undersigned, being the partners of firm M/s ,
 Head Office: ________________________________________________
hereby apply for registration of the said firm and for that purpose supply the following
particulars,
Pursuant to section 58(i) of the Partnership Act, 1932

The Firm’s Name “ KHAADI outlet “

(a) Principal Place: OPP: PUJC NEAR BANA DEEWAN SHAH

HOTEL
Place of Business:
(b) Other Place: N/A
Name of Partners in full Date of Joining Permanent residential
With parcentage The firm address in full
1- Zoya safdar 2-FEB-2015 A.B.C
2- Sania khawar 4-FEB-2015 =
3- Ayesha Ayub 10-FEB-2015 =
4- Tayaba Bibi 14-FEB-2015 =
5- Shanza Abid 3-MARCH-2015 X.Y.Z

Duration of Firm
How and when terminable
“ PARTICULAR PARTNERSHIP“
Station: 13-MARCH-2015
Dated:

Signature of the partners or of their Specially

authorised agents
I, IQRA NASIR_D/o of MUHAMAD-nasir years of age of _______ religion, do hereby declare
that the above statement is true and correct to the best of my knowledge and belief.

Date: 17 MARCH 2015

Witness
Address
Signature:---------------------------------

I, FATIMA tahir D/O of Tahir HUSSAIN years of age of _______ religion, do hereby declare
that the above statement is true and correct to the best of my knowledge and belief.

Date: 17 MARCH 2015

Witness
Address
Signature:---------------------------------

I, seher kanwalD/O of MOHAMMAD HUSSAIN years of age of _______ religion, do hereby

declare that the above statement is true and correct to the best of my knowledge and belief.

Date:18 MARCH 2015

Witness
Address
Signature:---------------------------------

I, AMNA ABID D/O of CHOUDHARY ABID years of age of _______ religion, do hereby declare
that the above statement is true and correct to the best of my knowledge and belief.

Date: 18 MARCH 2014

Witness
Address
Signature:---------------------------------

I, ___________________ son of ____________________ ____ years of age of Islam

religion, do hereby declare that the above statement is true and correct to the best of my
knowledge and belief.

Date: ____________
Witness
Address
Signature:---------------------------------

I, ___________________ son of ____________________ ____ years of age of Islam

religion, do hereby declare that the above statement is true and correct to the best of my
knowledge and belief.

Date: ____________

Witness
Address
Signature:---------------------------------

Name of partners:
1. Zoya Safdar
2. Tayaba Bibi
3. Sania Khawar
4. Shanza Abid
5. Ayesha Ayub

Types of Partner:
 1. Managing/Active partner:
A managing partner is one who takes active part in
management of the firm and who is known to general public as
a partner in the firm. A managing partner is also known as
working partner. When active partner is retires from the firm he
must give a public notice of his retirement. In this business
these partner are managing partners.
 Zoya Safdar
 Sania Khawar
 Ayesha Ayub
 Tayba Bibi

2. Silent Partner:
A silent partner is one who does not participate in
management of affairs of the firm but him known to general to
public as a partner in the firm. Liability of a silent partner for
debts of the firm is same as the liability of managing partner. In
this partnership business Shanza is a silent partner.

Promotion of Khaadi:
We have decided to start a business gathered all factor of
production for this we have and now it is time to start the
promotion of our collection. We have also checked that we
have all facilities according to our need here. So we are going to
start the promotion of our collection.
The steps involves in the promotion are:
1. Discovery of opening a Khaadi collection
2. Analysis for the possibilities of our idea
3. Arrangement of all necessary equipment’s
4. Sources of generating capital

Discovery of opening a khaadi:

We are five friends, after completing our studies we visited
the whole Jhelum city and the cities around it. We found here
less number of branded dress shops as compare to people
live here, who mostly are foreigners and like to wear designer
 suits so we have decided to open a khaadi here. It will attract
people and our business will be more popular.
Analysis for the possibilities of our idea:
Now after conceiving this idea, we will check that are we able
to get all factors of production to start our business or not?
We are arranging land and labour too. For starting our
business we have made arrangements of all machinery which
is our basic requirement. Our idea is feasible as we are going
to get finance according to it. We have started our business
on such a price that is less than our competitors like Warda
,Tana Bana and Gull Ahmed

Arrangement of all necessary equipment:

After arranging all factors of production, management is
taking decisions according to our plan of khaadi. We are
making contacts to provide us raw materials for production.

Source of generating capital:

The amount of our estimated capital is 2.5 Million. Capital is
of ratio of debt to equity. We have taken decision to gather
our capital from taking loan, by own savings and doing
contract to third party on return his money on 5% interest
after two years.

Business function:
The actual performances of activities are known as function
of business they depend on the nature of business.
Types of functions:
a) Management
b) Finance
c) Accounting
d) Production
e) Marketing

Management:
Successful business is a well-managed business. Managing
business means getting things done through other. Business
men employ a team of workers and he is responsible for
creating an environment in which the workers work
efficiently. The first step is to take up the planning a course of
action to be taken in future. Business man sets the objectives
of his business and of various departments of his business
and take practical steps. The manager of our franchise is hire
on salary that is selected by voting of all partners. After
selecting a manager, all responsibilities of managing a
business is given to him. After that the manager of a
restaurant tells all members of retardant what to do and
ensuring that they do it to the best of their abilities. He
manages the working of all employees. He also manages the
sitting arrangements, dealing with customers etc.

Production:
The process and methods used to transform tangible inputs
raw materials, semi-finished goods and intangible goods,
information, idea, knowledge into goods or services.
Production is creation of goods and services. Production
activities that go on in the organizations are often referred to
as operations. Operations management is the term use to
denote management of any aspect of the production system
apart from day to day management this function. The
business is required to devote his attention to such factors
that increase quality of products and efficiency or production
process.The process of production of Khaadi is quite easy due
to machinery which saves the money and time. Khaadi
introduce all types of Kurtas , Desinger dress,Man(Eastren
wear),Accessories and Home for the process to prepare the
dresses use the latest technology we have invested five
hundred thousand.

Accounting:
Managing a business is a matter of making decisions. In order
to make sound decisions the decisions should be based on
accurate pertinent and timely information. Accounting is a
information system that provide a business man to record in
a systematic manner. The transaction taking place in business
to knew the results of its operation to assertion its financial
position to exercise control over its operations to make
estimate and forecast to prepare plans to evaluate course of
action. The accountant of khaadi contains the record of the
transactions. How much money gives to employees, workers,
and supplier and keep the records of earning. The accountant
of franchise records all the accounts.

Marketing:
Marketing is the process of communicating the value of
product or services to customers, for the purpose of selling
that product or service.

Advertisement:
Advertisement is the best source to promote our business.
For advertisement we use medium like TV, Newspaper, and
Radio. We also visited to colleges, schools of Jhelum city and
distribute pamphlets atract customers.

THANK YOU