2. Interest on subscriptions: No interest will be charged on partners` subscriptions. 4. Interest on loans: If a shareholder, apart from his share capital, presents money in the form of a loan to the company, he is entitled to interest on this amount of six percent per year. In the absence of a partnership agreement, interest is paid on the partner`s loan If a partner has granted the company a loan in addition to his share of the capital, he will be granted an interest rate of 6% on such a loan. (§ 13) Normally, a company deed covers all matters relating to the mutual relationship between the partners. However, in the absence of an agreement, the following provisions of the Indian Partnership Act 1932 apply for accounting purposes. 6. The partner shall indemnify the company for any damage caused to him by his intentional omission from the commercial activities of the company. 1. Interest on capital: No interest is allowed on shareholders` capital. If interest is allowed under the deed of partnership, it will only be paid if a profit is made.

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