joint hindu family business

MADE BY:DIKSHA AGARWAL BBA-A

INTRODUCTION Joint Hindu Family Business is a form of commercial organization where a business is owned by the members of a Hindu Family living jointly. When the business continues from one generation to another in a Hindu family it becomes a Joint Hindu Family Business. It is a business where a person becomes a member only by virtue of birth in the Hindu family. The Joint Hindu Family Business is a distinct form of business organization existing only in India. It is an enlarged form of sole trading concern. The business comes into existence by the operation of the Hindu Law.

The family is headed by a patriarch, usually the oldest male called "Karta", who makes decisions on

economic and social matters on behalf of the entire family and has unlimited liability. The inheritors of the Joint Hindu Family Business are called Coparceners·. Their liability is limited. All money goes to the common pool and all property is held jointly. There are several schools of Hindu Law, such Mitakshara, the Dayabhaga, the Murumakkattayam, the Aliyasanthana etc. Broadly, Mitakshara and Dayabhaga systems of laws are very common. Family ties are given more importance than marital ties.

FEATURES

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Organization Existence: A joint Hindu family business exists due to the operation of Hindu law and not out of contract. The rights and liabilities of co-parceners are determined by the general rules applicable in the Hindu law.

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Membership: A person born in the family gets an automatic membership of the business and legality is not affected by the minority of the member. There is no limit to the maximum number of members in this type of organization.

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Registration of Organization: It is not necessary to get the business registered

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Management: The business is manged and controlled by the head or the 'Karta'. He has the power to obtain loans against the family property etc. The Co-parceners do not have the power to raise loans or enter into contracts.

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Liability: 'Karta ' has unlimited liability and the co-parceners have limited liability to the extent of their individual investment in the family business.

ADVANTAGES

DISADVANTAGES

Ease of formation

Applicable to Joint Hindu families

Continuous operations Flexibility of operations

Limited capital Limited managerial talents

Minimum Government Regulations

Unlimited liability of the Karta

Quick Decision Making

Family Disputes

Let take an example of Joint Hindu Family Business.

DID YOU KNOW?

Haldirams was started by Shri Shivkisan Agrawal in 1937 as a Sweets and Namkeens shop Bikaner,Rajasthan.

PROFILE Haldiram’s Food I nternational Limited today is recognized as a Star Export House,by the DirectorateGeneral of Foreign Trade ,a department working under the Ministry of Commerce , Government of India. The Haldiram’s brand goes way back to 1937 when it was just a retail Sweets & Namkeens shop in Bikaner, Rajasthan. The small but significant town nestled in Thar Desert in the North- West Rajasthan. Shri Shivkisan Agrawal, founder of Haldiram’s always cherished the dream of building an Empire which catered to the common man. This dream was realized in the embodiment of Haldiram’s Nagpur (1970).

Haldiram’s Bhujiawala became operative and soon it became a hot favorite of all Nagpurians. A model factory of its time for manufacturing Sweets &Namkeens was set up it:Haldiram’s House, 880, Small Factory Area, Wardhaman Nagar, Nagpur. This was followed by a chain of retail outlets & showrooms catering to the varied tastes of all segments of society. In 1997, Haldiram’s foryed into milk and milk product industry with products such as khowa, Ghee& Butter Milk, the manufacture of Extruded foods such as vermicelli and 3-D Snacks. Today’s Haldiram’s has Branch offices at commercial Capitals like Mumbai, Bangalore & Chennai. It is only due to the untiring efforts of the founder Chairman, Mr. Shivkisan Agrawal, our dynamic leader that Haldiram’s is the proud recipient of the International Food Award. Today, Haldiram’s Nagpur is one of the leading players in the snack food industry despite stiff competition from the global food giants, earning valuable foreign exchange for our country. We have been branded as “The No. 1

brand” in the ready to eat Snack Food category and as India’s Most Trusted Brand in 2003. Haldiram’s has been the proud recipient of many awards such as the International Food award from TROFEO International Alimentation of Barcelona , Spain (1999). Shri Shivkisan Agrawal,Chairman of Haldiram’s Group has also received a regional award , titled . “VIDARBHA GAURAV PURASKA” Haldiram’s today has an international membership with the following associations :1. SNACK FOOD ASSOCIATION, VIRGINIA (USA) 2. EUROPEAN SNACK ASSOCIATION, LONDON (U.K) 3. INTERNATIONAL ASSOIATION OF AMUSEMENT PARKS AND ATTRACTIONS, ALEXANDRA, VA (USA)

PRODUCTS

HALDIRAM’s products are exported to many countries like :-

USA

KENYA JAPAN UK AUSTRALIA PAKISTAN CANADA SRI LANKA SINGAPORE MALAYSIA SOUTH AFRICA INDONESIA QATAR HONG KONG

JAPAN KENYA LIBYA SOUTH KOREA NIGERIA MAURITIUS ZAMBIA BAHRAIN UK

UNITED ARAB EMIRATES LIBYA

MALAYSIA AUSTRALIA SOUTH AFRICA HONG KONG ZAMBIA INDONESIA

INTERESTING FACTS Haldiram’s Restaurants consume 80 million kg o f butter in an av erage year

Fifty Thousand customers visit Haldiram’s outlet everyday.

5 Cou 0 nt st ries Hal ock d i r a m’s

Pani Puri exports were at 10,000 kg in 2005.

152 items on out menus,many more seasonal sold.60 products are exported every year

During Diwali , Haldiram’s packaged sweets fly off the shelf like sand during sand storm.

Spices are sourced from all over India ,the year aroud

At Haldiram’s every festival is celebrated with special sweets and namkeens for example:-

JANUARY 31

FEBRUARY 23

Try out 10 varieties of COMBO PACKS , Guru Gajak Rewari, Sugar Gajak Rewari and Coconut Barfi specially put together for PONGAL-LOHRI

Try out 10 varieties of COMBO PACKS & Milk cake specially put together for SHIVRATRI

MAR

APRIL

MARCH 11 Try out 10 varieties of COMBO PACKS,9 varieties of Sharbats,Gujais and tinned sweets specially put together for HOLI

12 13 Try out 10 varieties of COMBO PACKS and tinned sweets specially put together for RAM NAVAMI

AU

SEPTEMBER

AUGUST 02 28

14 23 Try out 10 varieties of COMBO PACKS, and Mewa L addu specially put together for RAKSHA BANDHAN

21

Try out 10 varieties of COMBO PACKS, Moti Choor Laddu and Boondi Laddu specially put together for ONAM

DECEMBER 25 OCTOBER

NOVEMBER

Try our ASSORTED BAKED 08 17 BITES COOKIES 02 28 18 19and some of our CONOISSEUR’S Try out 10 varieties of Try out 10 varieties of CHOCOLATES made of COMBO PACKS, COMBO PACKS, and the finest qualityBelgian Mathi,Fenia & Sewiya Mewa L addu specially put chocolatespecially put specially put together for together for KARVA CHAUTH togetherGURU for NANAK JAYANTI CHRISTMAS