PARTNERSHIP DEED

This DEED OF PARTNERSHIP (hereinafter referred to as “the Deed”) is made on this 20 th

day of August , 2020 at Sate of Bihar by and between:

a. Mr. Abhishek Kumar S/o Sh. Ashok Kumar resident of

Patna State of Bihar - 110029, (hereinafter referred to as the first partner) of the
FIRST part which expression shall include his legal heirs, assigns etc.;
And
b. Mr. Mayank Raj S/o Sh. Ravindra Kumar resident of
Patna State of Bihar - 110029, (hereinafter referred to as the second partner) of the
SECOND part which expression shall include his legal heirs, assigns etc.

The First partner and the Second partner, shall hereinafter individually be referred to as “the
Party “ and collectively be referred to as “the Parties”.

1. WHEREAS the parties have mutually agreed upon to carry on the business of
Selling of Sanitation equipments in any manner whatsoever in India as per details
given in clause 5 hereinbelow under the terms of this deed.

2. AND WHEREAS, the parties have mutually decided to actively devote their time and
attention to the nature of activities defined in this deed.

3. AND WHEREAS the parties have agreed to contribute in the capital of the Firm in
their respective proportion as and when required.

NOW THIS DEED IS WITNESSETH AS UNDER:

NAME & STYLE

1. That the business of the partnership shall run under the name and style “A & M
Sanitations” or such other name & style as the partner may agree upon from time to
time (hereinafter referred to as “the Firm”).

PRINCIPAL PLACE OF THE BUSINESS

 2. That the principal place of business of the partnership shall be located at Patna Sate of
Bihar - 110057. However, the business may be conducted from such other place or
places as may be mutually agreed upon between the parties from time to time.

BRANCH

3. That the firm may open any branch(es) at any time at such location(s) with the mutual
consent of the parties.

EXISTENCE

4. That this partnership business shall be deemed to have commenced on and from 20th day
of August , 2020, i.e. the date of execution of this Partnership Deed.

NATURE OF BUSINESS

5. That the business of the firm shall be as under:

a. to carry on in India, either alone or jointly with one or another firm and/or body corporate in
the business of selling sanitation equipments etc.
.

b. to carry on any other business activity as may be mutually agreed upon between
the parties from time to time.

CAPITAL

6. That the initial capital of the firm shall be Rs10,00,000/- (Rupees

10 lakhs only), to be subscribed by the Parties in the following proportion:
First party 50%
Second party 50%,
and at a later date the Parties shall contribute the amount of capital in the Firm in the
same proportion.

DRAWINGS

7. That the parties shall make drawings as and when required for their personal need and
shall be debited to their respective accounts and shall be adjusted at the end of the
financial year of the firm.
 BORROWINGS

8. That the firm may obtain such loan from Banks, Financial Institutions or any other parties or
can also take working capital limits from any Bank and other Financial Institutions
upon such terms as the parties may mutually agree from time to time.

SHARING OF PROFITS

9. That the profit and loss of the business of the Firm shall be ascertained after accounting of
all the business expenses on every 31st March and shall be divided and borne by the
parties in the following proportion :

Mr. Abhishek Kumar 60%

Mr. Mayank Raj 40%.

The amount falling to the share of each partner, on the making of account, as aforesaid,
shall be credited or debited, as the case may be, to his personal account in the books of
the firm.

REMUNERATION TO PARTNERS

10. That the parties shall be working partners and will be entitled for the maximum
remuneration permissible under the provisions of Section 40 (b) of the Income Tax
Act, 1961 in the following manner :
1st Partner 2nd Partner
a) In respect of first Rs. 3, 00,000 ……….% ………%
of book profit : Rs.150000/- or
90% of Book Profit
(whichever is higher)
b) In respect of balance book profit : ……….% ………%
60% of book profit

(for the purpose of this clause “book-profit “means the net profit ,as show in the profit
and loss account for the relevant previous year computed in the manner laid down in
the chapter IV-d of the Income Tax ,1961as increased by the aggregate amount of
 the remuneration paid or payable to both the partners of the firm if such amount has
deducted while computing the net profit)

INTEREST ON CAPITAL
11. That the parties will be entitled to interest on capital at the maximum permissible rate of
12% per annum under the prevailing provisions of the Income Tax Act,1961 or such
rate with the mutual consent of the parties.

MANAGEMENT

12. The [First Partner] of the firm shall be the Managing Partner and he will look after all the
day to day transaction of the firm and any legal activities in the name of the firm and
the remaining partners shall co-operate to do so.

BOOKS OF ACCOUNT

13. That the firm shall regularly maintain books of accounts in the ordinary course of business
to show true and correct view of all incomes , expenditures and all its assets and
liabilities and shall be maintained at the Head Office of the firm or at any other place
as may be mutually agreed upon by the Parties and shall remain open for inspection
by any Party. The accounting period of partnership business shall be a financial year
i.e. from 1st day of April to 31st March every year, a profit and loss account and
balance sheet shall be drawn upon as on 31st March every year.

BANK ACCOUNT

14. That the firm shall open bank account(s) with such bank (s) which shall be operated singly
by any one of the parties or in any other manner as may be mutually agreed upon
between the parties.

RETIREMENT OF PARTNERS

15. That the Partnership shall be AT WILL. However, any partner intending to retire from the
firm may do so by giving at least 30 days’ notice in writing to the other partner of his
intention to do so. In such an eventuality, the remaining Partner shall have sole and
exclusive rights to carry on the business of the Firm in the same name and style, upon
such terms as may be mutually agreed upon between the Parties including settlement
 of account of the retiring Partner as per books of accounts of the Firm as on the date
of retirement of the outgoing Partner and thereafter, the retiring Party shall have no
right to operate in the name and style of the firm.

ADMISSION OF NEW PARTNERS

16. The partnership shall be deemed to be continuing on the admission of a fresh partner or
partners, provided the admission is on the terms herein laid down and is approved by all the
partners.

PRIVATE DEBTS

17. That the Firm shall not be liable for any civil and/or any criminal liabilities in respect of
debts of any partner taken in the individual capacity and the Parties will not create any
liability against the Firm for the personal benefits or gains and no partner shall use
any assets of the Firm for his personal advantage, other than those relating to the
business of the firm.

INDEMNIFICATION

18. That each partner shall be individually liable to repay the debts taken in individual capacity
and the Parties do hereby undertake to indemnify the Firm and the other party of all
such costs, expenses and losses including any attachment seizure or sale of any of
the assets/property (ies) of the Firm , as may arise in this regard.

DEATH OR INSOLVENCY

19. That it is specifically agreed that the death or insolvency of any of the parties to this deed
shall not result in the dissolution of the partnership firm in such an eventuality, the
business of the partnership shall be carried on as before, by the remaining partner
along with legal heir of such deceased or insolvent partner.

WINDING UP

20. That the Firm can be dissolved only with the mutual consent of the Parties upon such terms
as may be mutually agreed upon between the Parties and the winding up of the Firm
shall be in compliance to the provisions of the Indian Partnership Act 1932.
21. Partner shall be entitled to dissolve the partnership in the event of the other committing
breach of the conditions herein covenanted. The partnership may be dissolved by a
notice in writing sent by registered post to the address herein given or such address as
may be registered from time to time with the Registrar of Firms. On the dissolution of the
firm under this clause the expelled partners shall not be liable for any loss incurred as
from the date of dissolution. But no profit or loss shall be paid or become payable
except at the time of annual accounting.

MISCELLANEOUS
22. That the Parties do hereby agree and undertake that during the tenure of this Partnership
Deed, none of the party shall enter and carry out any activities similar to the activities
of the business of the Firm , in his own name and/or in the name of any of his family
member/friends/ relatives or in partnership with any other person.

23. The said rent, and all taxes, duties, repairs and outgoings in respect of the said shops or
premises or other place or places of business of the partnership shall be paid out of
the partnership.
24. No apprentice, clerk or servant shall be employed or dismissed without the consent of all
the partners.

AMENDMENTS

25. That any alteration or amendment or modification of term of this Deed can be made in the
Deed by executing a Supplementary Partnership Deed.

BINDING EFFECT

26. That the parties do hereby undertake that they have read and understood all the terms of
this deed which shall be binding upon them during the tenure of this deed.

ARBITRATION

27. That in case of dispute amongst the parties, the same shall be referred to arbitration,
under the provision of Indian Arbitration Act ,1940 ,or any enactment in force for the
time being .
 APPLICATION OF INDIAN PARTNERSHIP ACT

28. That anything not hereinafter specifically provided for shall be governed by the provisions
of the Indian Partnership Act, 1932.

THIS PARTNERSHIP DEED IS SIGNED BY THE PARTNERS IN THE PRESENCE OF THE

WITNESS ON THE DATE AND PLACE WRITTEN ABOVE.

WITNESSES: (……………………………..)
(FIRST PARTY)
1.

(…………………………..)
2. (SECOND PARTY)