MODEL DRAFT

PROBLEM:

A and B want to start business in Warangal in electronic goods. Draft a partnership Deed for
them.

DEED OF PARTNERSHIP

THIS DEED OF PARTNERSHIP is made and executed at Warangal, on this 1st day of June,
Two Thousand and Two.

Between

Bathula Raji Reddy, S/o Venkata Reddy, Aged 22 years , Occupation: Business, R/o Reddy
Colony, Warangal - hereinafter called the partner of the FIRST PART which expression shall
mean and include is heirs, successors, assignees and legal representatives unless repugnant to the
meaning and context thereof.

AND

Koti Ravinder, S/o Madhava Rao, Aged 25 years Occupation: Business, R/o Excise Colony,

Hanmakonda - hereinafter called the partner of the SECOND PART which expression shall
mean and include is heirs, successors, assignees and legal representatives unless repugnant to the
meaning and context thereof.

WHEREAS the parties have in their individual capacities constituted into a Partnership on this
the 1st day of June 2002 under the name and style of "M/s. SURYA TEJA ELECTRONICS" and
now they feel it desirable to put the terms and conditions into writing.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. That the name of the firm shall be "M/s SURYA TEJA ELECTRONICS" at Main Road,
Subedant, Hanmakonda.

2. That the main place of business shall be in Hanmakonda, and the firm shall open its branch or
branches of any other place or places as mutually agreed upon by the partners from time to time.

3. That this deed of Partnership comes into force with effect from 01-06-2002.
4. That the business of the firm shall be that of sales and purchases of all electronic goods. i.e.
T.Vs, Radios, Transistors, Tape Recorders, Videos, and allied business.

5. The business may be extended to other fields as may be decided by the partners from time to
time.

6. The partnership shall be at will.

7. The capital required for the business shall be contributed by all or any of the partners at their
convenience and capacities.

8. Further capital required for the business shall be borrowed from banks, financial
institutions, or otherwise from outside. The interest payable thereon shall be paid out of the
partnership funds irrespective of profits and loss of the said business.

9. The profits or losses arising out of the business shall be shared or born as the case may be
among the partners in the following ratio:

Name of the Partner Share in a rupee

1. Bathula Raji Reddy Rs. 0-50 ps

2. Koti Ravindar Rs. 0-50 ps

Total Rs. 1-00 ps

The profit and loss of the business shall be determined as on the 31st day of March every year.
The profits and losses arising out of the business shall be carried to the individual accounts of the
partners as soon as the books of accounts are closed at the end of each year.

10. The partners shall be entitled to draw the amounts for their personal expenses, and such
drawings shall be debited to the respective individual accounts provided that the drawings in any
one year shall not exceed the amount of the share of the profit for that year. The drawings if any
in excess of the share of profit shall be refunded to the firm as soon as it is ascertained.

11. A Bank account shall be opened in any Bank in the name of the firm and shall be
operated by both the partners.
12. All the partnership moneys, bills, cheques and other securities received by the firm shall
be as and when received be paid or deposited in the bank to the credit of the firm's account,
except such sums as are immediately required to meet the current expenses.

13. The partners are entitled to draw monthly salaries such amount as may be decided by
the partners from time to time.

14. That the capital invested by the partners shall bear the interest at such rate or rates as
decided by the partners the rate of interest shall be simple interest.

15. The accounts of the firm shall be properly and regularly maintained and kept at the office of
the firm, and shall be made up and prepared at the close of each year ending on 31st day of
March.

16. In the event of any partner desiring to retire from the partnership he shall give a
previous notice of three months in advance to that effect. On such notice being received by
the film the accounts of the firm shall be brought up to date and balance sheet as at the end
of the period of the said notice shall be made up. The outgoing partner shall be paid his
share of net profit as on the date of retirement and shall be required to all his dues or debts, if any
to be paid to the firm, and after all the claims and dues of and or against the firm, are satisfied, he
shall be deemed to be free from the partnership and the other partner is entitled to continue the
business.

17. The death of any partner occurring during the currency of the said partnership the remaining
partner shall be entitled to continue and carry on the said partnership business with the legal
heirs of the deceased partner, and if the legal heirs of the deceased partner decide not to carry on
the business, then the surviving partner may continue the firm's business in the same name and
after working out and paying the dues and claims of the deceased partner, to his heirs
successors or legal representatives as the case may be.

18. The disputes if any, arise out of the interpretations of the clauses of this agreement or
in respect of the business, the same shall be decided by an Arbitrator or Arbitrators as chosen by
the partners. The jurisdiction for all the legal matters shall be at Warangal.
19. In respect of the other terms not touched by this Deed of Partnership, the Partnership
Act 1932 shall be in force, with all its amendments from time to time, and shall be binding on
the firm.

IN WITNESS WHEREOF, the parties hereto have hereunto set and subscribed their respective
hands and the day and year first herein above mentioned.

1. Sd/-- xxxx
(BATHULA RAJI REDDY)
2. Sd/-- xxxx
(KOT RAVINDAR)
Witnesses

1. Sd/- xsxx
(PASIKA RAJAM)
S/o Shankaraiah,
R/o Subedan, Hanmakonda

2. Sd/- xxxx
(VEMULAWADA KOTILINGAM)
S/o Eswaraiah,
R/o Reddy Colony, Hanamkonda

Scribed by: Dhanan Janaki Ram, S/o Bapiraju, R/o Warangal.