ARTICLES OF ASSOCIATION OF THE INDUSTRIAL CO-OPERATIVE (HANDICRAFTS)

1. IDENTITY OF THE CO-OPERATIVE. A, Name :- The Name of the Cooperative shall be The Paradise Ari Staple Emb. I.C.Ltd Nowpora Payeen . Regd. No. Ric/KP/SRA/244, Date:- 06-08-2007. B, Regd. Office: The Registered office of the cooperative be at Nowpora Kawoosa C, Area of operation: The area of operation of the cooperative will be confined to Distt. Budgam D, Custody and use of the common seal: The co-operative shall have a common seal which will remain in the custody of the President or Secretary & shall be affixed in the presences of the both office bearers as per specific resolution of the managing committee.

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2. DEFINITION The word ACT means the J&K Kashmir self reliant co-operative act 1999, amended from time to time. Govt. means the J&K Kashmir Government REGISTRAR means the registrar of cooperatives under J&K Self Reliant co-operative Act 1999 & includes any individual empowered to exercise the powers of Registrar under this Act. CO-OPERATIVE means an autonomous association of persons united voluntarily to meet their common social & economical through a jointly owned and democratically controlled enterprise Regd. Under the J&K Seld-Relient Co-operative Act 1999. ARTICLES OF ASSOCIATION means the regulation of a cooperative as originally firmed or as amended from time to time. MEMBER means a permanent resident of the state as defined in section 6 of the constitution of the J&K whose in need of & is able to use the core services of a co-operative & Who is admitted as member of the co-operative in accordance with the provision of the self Reliant cooperative Act. 1999 & the articles of association. NOMINAL MEMBER means a person which is admitted as a nominal member under clause (5) of articles of association.

3. AIMS AND OBJECTIVES a) To prepare the finished goods in Sozni Emb. Craft in the homes of the members jointly according to their choice or In their units. b) In order to establish units of the cooperative it will purchase land or get the same on lease bas e & will construct the work shed for the members of the cooperative. c) To purchase the required raw materials, Instruments, Tools & Accessories & Machinery of required for the better production. d) To provide the quality raw material to the members of the cooperative. e) To arrange market for the finished products, produced by the members of the cooperative. f) To get the work order from the Govt. public organizations & customer & to finalize the name with the help of members. g) To get loans/ credit from the members as well as the non members. h) To ensure the direct interaction between the producer (member) &^ the buyer for promotion of Handicraft products of the cooperative. i) To provide chances of better wages to the members of their job executed via the managing committee of the cooperative.

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To provide advance wages to members when demanded subject to approval by the managing committee of the cooperative. k) To ensure the sal4es of products manufactured by these members within the district & if required within the state or outside state . l) To do all such Acts which is for the uplift-ment meaningful purpose but the main concept shall be to promote the socio-economic condition of the basic members of the co-operative. m) To provide all basic facilities to members as per the provision of self Reliant co-operative Act 1999. 4. MEMBERSHIP a) Any individual artisan dealing in Sozni Emb. Handicraft male or female with adult age that ie plus 18 years compete tent to contract & reside within the area of operation of the co-operative & engaged in the same occupation in the area can be the member of the co-operative. b) Any other individual artisan as defined under clause 2(VI) of these articles of association having its registered office within the area of operation of its co-operative & conducting business with such area may be admitted as a member, provided that: 1. The individual person is not engaged in a business competing with or conflicting with the business of this co-operative. 2. The individual person is not convicted of any criminal offence involving moral turpitudes. 3. The individual person is not the member of any other co-operative with same monoculture & business. 4. The individual person is not any employee of any other co-operative. 5. The individual or person has subscribed and fully paid for at least one share of the cooperative * his / her application has been duly approved by the managing committee of the cooperative. c) The govt. of J&K can become the member of the cooperative by purchasing the shares of the cooperative. d) Financial institutions can also become the members subject of following conditions. No right of membership shall be exercisable until a person has made such payments to the cooperative in respect of membership or required such interests in the cooperative as may be prescribed by the Act or Rules of Articles of Association . 5 NOMINAL MEMBERS Any individual person has been enrolled as member with the provisions prescribed in clause (4) of these Articles of Association shall be called as Nominal Member for at least full financial years. 1.The niminal member shall not be entitle:a) To attend to participate & to vote in the general body meeting or special general meeting & or board of directors/ managing committee. b) To receive divided or an share in the assists or polits of the co-operative. 2. A co-operative / Co-operative society regd. Under an law shall not be eligible & as such shall not be adiumitted to nominal membership in terms of provisions of those articles of association. 6. REGISTRATION, CESSATION, EXPULSION OF MEMBER. 1, Registration:- Any member may resign from his/ her membership & withdrawal his/ her share will the approval of the board of directors/ managing committee. The approval shall not be given while such a member is indebted & within two years of his/her becoming a member of the cooperative. During any co-operative year. The aggregate withdraws should net exceed 10% the total paid-up share capital as at 30th march of the proceeding year.

2, Cessation:- a member shall case his membership:a) On death, or dissolution or liquidation in case of firm or company or other corporate body. b) On being adjusted an insolvent or legally disabled from contusing as member. c) On breath of any condition prescribed under clause (4) of the articles of association. d) On resignation or withdrawal of membership having been accepted. 3, Expulsion:- A member may be expelled in terms of the revisions as laid down in section-20 of the J&K Self Reliant cooperation Act 1999. 7. NOMINATIONS. 1. A member may nominate a person to receive the member interest in cooperative after his/her death. Nominal shall be in the prescribed from & entered in the special registrar leapt at the registered of office of the cooperative prior approval of the board / managing committee shall be necessary, if the person, to be nominated, is an employee of the cooperative. 2, Nomination can be revoked or changed any member of times after due intimation in writing to the cooperative & on payment of prescribed fee of Rs, 25/= for every subsequent nomination. 8. DEATH OF SHARE HOLDER. On death of the share holder, co-operative may pay to the person or persons nominated a sum representing the value of the share holders interest in the cooperative within six months from the death of the share holder. In the absence of the nomination, the cooperative may pay such person or persons as may appear to the board of director to be entailed to receive the same as heir or legal representative of the deceased share holder on his/ her be their executing an appropriate deed of indemnity in favour of the cooperative. Interest of the deceased shall be the amount of the share & dividend or any other account by the amount due by his/her to the cooperative. 9. LIABILITY OF A MEMBER. The liability of a share holder member shall be limited to the capital represented by the share or shares of which such share holders in the registered share holder. The liability of the past share holder, to the extent of share as existed at that time when he/ she ceased to be a share member, shall continue for a period of two years from date of cessation of two years. 10. GENERAL BODY 1. Subject to the provisions of the Act & rules the final authority of the co-operative shall vest in the general body. 2. General meeting shall be of two kinds, viz, annual general meeting & special general meeting. 3. The annual general meeting shall be called once or before 30th sept. each year or within such period as excited by the competent authority. 4. The special general meeting shall be called at any time by the board of director it shall also be called on a written requisition made to the President/ Secretary of the board of directors (managing Committee) within 30 days of the date of receipt of requisition from:a) At Least 25% of the members having the right to vote or b) The Registrar.

11. BUSINESS OF THE ANNUAL GENERAL MEETING The business of the annual general meeting shall be as under:1. To consider the board of Directors report on the working of the cooperative for the preceding year, together with the audited statement of accounts including the balance sheet, profit & loss account of the year. 2. To sanction distribution of profits and to declare dividend @ not exceeding the rate recommended by the BOD and prescribed in the J&K Self Reliant co-operative Act & Rules 1999. 3. To appoint duly qualified auditors, necessary, for the ensuing year for conducting statutory audit & fix their remuneration. 4. To elect the members of the board of directors 5. To consider commutation form Register&/or auditor relating to the annual audit 6. To fix the maximum limit up to which the board of directors may raise funds. 7. To constitute an Arbitral Tribunal. 8. To consider any other subject of which proper notice has been given as prescribed. 12.BUSINESS OF SPECIAL GENERAL MEETING The business of special general meeting shall be as stated in the notice of requisition only .No other shall be transacted. 13.NOTICE FOR ANNUAL GENRAL MEETING & SPECIAL GENRAL MEETING 1 Notice of the annual general meeting together with agenda of the meeting shall be sent to each member prior to a weeks time ton the date of the meeting. 2 A special general meeting must be convinced with 30 days from receipt of requisition form members not less then 25% of total members having right to vote or form the register & notice shall be sent to the members under registered cover at least 15 days prior to the date of meeting. 3 Notice of the meeting shall be signed by the Chief Executive Officer of the co14. QUORUM Twenty five percent of total number of share holder members shall constitute a quorum of a general body meeting .No business shall be transacted at any meeting unless the quorum of the embers is percent. 15. CHAIRMAN/CHAIRPERSON OF GENERAL MEETING. The chairman/chairperson of the board of directors shall preside over general meeting .In his/her absence. The vice chairman/chairperson & in the absence of both, the share holder members & entitled to vote shall elect one form amongst them to preside over the meeting. 16. MINUTES 1. Minutes of the general meeting shall be recorded/made in the minutes book provided for the purpose. 2. Minutes of meeting shall stand confirmed as the same are signed by the chairman/chairperson/President who preside over that meeting. 17. BOARD OF DIRCTORS 1. The board of directors shall consist of not more than five directors (managing committee members) to elected form amongst share holder members of the co-operative. 2. In addition to elected directors the board of directors/managing committee may, if it so desired co- operative not more than two directors form among persons as connected with the affairs of the co- operative. Such directors however shall not be entitled to vote the meeting of the board of directors. 18 CHAIRMAN / CHAIRPERSON AND VICE CHAIRMAN/ VICE CHAIRPERSON OF BOD.

1. The BOD at its first meeting after the general meeting shall elect chairman (President) & Vice Chairman( Vice President) from amongst the elected director this meeting shall be held within 15 days for the date of the annual general meeting. 2. The Chairman ( President) shall preside over all meeting of BOD and also over the annual general meeting and special general meeting when such meeting or called for . 3. In the absence of the chairman ( President) the vice chairman ( Vice President) shall preside over the meeting in absence of both the Director, Share Holder Member, eligible to vote shall elect the chairman for among those peasants to preside over such meetings. 4. The Chairman of a meeting shall have a cost vote. 5. The chairman and Vice Chairman shall held officer for 5 years. They shall be eligible for reelected subject to maximum 2 terms continuously. 19. ELIGIBLITY FOR ELECTION OF DIRECTOR. A Director shall be deemed to have vacated his / Her office before the expiry of his / her term if:He / She becomes a default either has a borrower or as surely. He/ She resign and His/ Her resignation is accepted by the BOD and or cease to be a member. He/ She remain absent for three consecutive meeting of the board without obtaining leave ob absence. He / She is adjusted insolvent or incurs legal disability. He / She accepts a position of profit in the cooperative.

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20. VACANCY IN THE BOARD OF DIRECTORS. Vacancy in the board of directors occurring via death, removal, resignation or any other reasons, shall be filled by the remaining share holder members by cooperation from amongst the share holder who have been members for at least two continuous years as on the date of co-option such directors shall hold be office till to time of next. 21. MEETING OF THE BOARD OF DIRECTORS & NOTICE OF THE MEMBERS. The board shall meet at least once a month. Notice of the meetings of the board together with the agenda of the meeting % details of business thereof shall be sent all the directors at least 10 days prior to the date of meeting, by the chief executive. 22. QUORUMB. Three directors shall from a quorum. 23. POWERS OF BOD 1. To consider applications for membership allotment, transfer of shares & resignation. 2. To approve annual balance sheet, statement of profit & loss account & other statement for being placed before the members at the annual general meetings. 3. To approve appointment of Chief Executive Officer for conduct of the business of the cooperative & to fix the remuneration in his favour. 4. To prepare annual budget estimates. 5. To consider payment of compensation, advance rent & advance wages with or without security for the purpose of securing premises for the co-operative on lease or tenancy basis. 6. To open banking accounts with the bank or financial institutions and to authorize the Chief Executive Officer and one Director of the Co-operative to deal with the same. 7. To secure membership or afflation to appropriate financial institution.

8. To establish and support the provident fund scheme for the benefit of the staff of the cooperative. 9. To refer any dispute by or against the co-operative to the orbital tribunal duly appointed by the general body for the purpose. 10. To arrange election of BOD and annual general meetings. 11. To make after rescind or abrogate the rules from time to time regarding the following. a) To consider the salaries for the staff. b) Service rules. c) Election rules d) The approval of general body shall be obtained in respect of election rules & service rules. e) To perform all Acts connected with the administration of the co-operative & to under take all activities & business in furtherance of the aims & services of the co-operative. 24. CHAIRMAN / PRESIDENT. To power & the duties of the Chief Executive Officer will be as under :1. To take action on the resolution and decisions taken by the genera body and board of directors. 2. To convene the meetings of the general body. BODs and other meeting and to attend to record the minutes of all the meeting in the minutes books and to counter sign the same along with the chairperson / president the meeting. 3. To conduct the correspondence on behalf of the co-operative. 4. To ensure maintenance of all books of accounts, resistors and ledgers as many have been prescribed in this behalf. 5. To receive applications for membership of the co-operative and for additional share and place them before the board of directors with his report and recommendation. 6. To receive application for enrollment of nominal members and pass order there on. 7. To allot among the members of the co-operative and to arrange required raw material execution of job on the same. 8. To talk disciplinary action against the staff of co-operative in occurrence with service rules . 9. To pass orders on leave applications and other permissible bills of the staff. 10. To incur expenditure within the budget approved by the BODs. 11. To exercise such other powers and discharge such duties as may be delegated or entrusted to him by the BODs of the co-operative.

26. RESERVE FUND 1. All admission fees, entrance fees nominal membership fees, amount of forfeited share and dividends and donations shall be carried to the reserve funds. 2. Any lost occurring as the net results of the years working may with previous approval of general body be made from the reserve funds or from the profits of the next ensuing year or years. 3. The reserve funds shall be separately invested. In Govt. and trustee securities and other approved securities or in fixed deposits with the state co-operative bank or any other financial institutions. 27. DIVIDEND 1. The dividend declared shall be pay to the person whose name stands as the registered share holder in the books of the co-operative on the last day of the co-operative to which the dividend related.

2. Dividend shall be proportionate to the amount paid on share / shares and the in whole months for which the amount stood at the credit of share holder. 3. Dividend shall be payable at per at the head office of the co-operative as well as the branches if any. 28. FUNDS. Funds may be raised by three following means. Admission fees. Shares. Loans. Cash credits, over drafts, and advances against work orders. Donation, grants and subsides and financial assistance from the department / institutions engaged with the promotion of handicraft sector at state & national level.

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29. MAXIMUM BORROWING POWER. The maximum borrowing power of the co-operative shall not exceed 25 times of the equity capital (Share capital) plus reserves, minus the bad debits reserve and accumulated losses or any other higher limited fixed by the competent authority. 30. SHARES The authorized capital of the co-operative shall be Rs-1.00 lacs made up of 100 A class share of Rs1.000/= each which shall be paid in full on application for membership & 200 B class shares of rs5.000/= each which should be paid in full on application. A class share shall be open to individual when may be enrolled as the member of the co operative. B share be open to the govt. and either co-operative bodies including the co-operative banks. General resolution may increase the authorized share capital from time from subject to the approval of the competent authority.

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31. AMENDEMENTS TO THE ARTICLES OF ASSOCIATION None of these articles of association shall be added to, amended, altered or rescinded, expect by a vote of majority consisting of not less than two thirds of the members present and voting at a general meeting. Any addition amendment, alteration or recessions, resolved upon at such meetings shall take effect from the date of receipt of approval from the registrar of co-operative / Registrar co-operative societies.

32. ARBITRAL TRIBUNAL The general body shall constitute an arbitral tribunal consisting of five members amongst the share holder members as prescribed under J&K self reliant co-operation Act 1999. 33. RETURNS. The co-operative shall make available all returns to the registrar of co-operative at the expiry of each financial / Co-operative year. 34. CO-OPERATIVE YEAR. The co-operative year shall be from 1st April to end March every year.

35. LANGUAGE OF THE CO-OPERATIVE The language of the co-operative shall be in English or Urdu. 36. SAVING CLAUSE. Any thing found contrary in the Articles of association of the co-operative with the provisions of J&K Self Reliant co-operative Act 1999 or the co-operative principle shall be void to the violates or contravenes the Act or the principles. LIST OF LATEST MANAGING COMMITTEE MEMBERS OF M/S PARADISE ARI STAPLE EMBROIDERY INDUSTRIAL CO-OPERATIVE LTD. NOWPORA PAYEEN BUDGAM.
S. No Name With Parentage
Mudasir Ali S/o Ali Mohd Ganie Tariq Ag Ganie S/o A Ahad Ganie Farooq Ah Khan (State Awardee) S/o Gh Mohd Khan Bashir Ah Ganie S/o Late Jamal Ganie Haseena Akther D/o Gh Mohd Sheikh Arsheeda Akther D/o Ab Rahim Malla Farhana Hameed D/o Ab Hameed Bhat Misra Bano W/o Ali Mohd Khan

Address

Occupation/ Designation

Relationship member

any

other

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Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa Kawoosa Khalisa

Secretary Artisan President Artisan Member Artisan Member Artisan Member Artisan Member Artisan Member Artisan Member Artisan

NIL NIL NIL NIL NIL NIL NIL NIL

(Secretary) Mudasir Ali

(President) Tariq Ahmad Ganie