Newsletter dated 5th June, 2015

1. www.csrajivbajaj.com
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THOUGHT OF THE DAY
THOUGHT OF THE DAY
“The Road to Success Comes through Hardwork,
Determination and Sacrifice…”
Law Updates:
 India inks global pact on automatic exchange of financial information
to deal with problem of black money. Australia, Canada, Costa Rica,
Indonesia and New Zealand are the other five nations that signed the
Multilateral Competent Authority Agreement (MCAA) in Paris for
automatic exchange of financial account information.
 Vide Notification No. 08 /2015-2020 dated 4th June, 2015 issued by
Directorate General of Foreign Trade Amendment in Paragraph 2.06
regarding Mandatory documents. These amendments would be deemed
to have come into force with effect from 1st April 2015.
PROFESSIONALS INPUTS
 The requirement of filing declaration by a company before
commencement of business or exercising its borrowing powers has
been dispensed with under the Companies (Amendment) Act, 2015.
Accordingly companies are no longer required to file e-form INC-21
with the Registrar through MCA portal.
 Vide Order ref F.NO-2/19/2011-CL-V dated 04.06.2015, The
Government constitutes Company Law Committee.
 Vide RBI Notification ref RBI/2014-15/626 DBS.CO.ARS.BC.8/
08.91.001/2014-15 dated June 2, 2015, it is clarified that Concurrent
Auditors, who are chartered accountants, of branches below the cut-off
point will submit LFAR only to the Chairman of the bank. The banks in
turn will consolidate/compile all such LFARs submitted by the
Concurrent Auditors and submit to Statutory Central Auditor as an
internal document of the bank.
 Vide Notification No. 45/2015 dated 22.05.2015, Amendment in
Notification No. GSR 853(E), dated 25-9-1989 with reference to Section
90 of the Income-tax Act, 1961 - Double Taxation Agreement -
Agreement for avoidance of double taxation and prevention of fiscal
evasion with foreign countries – Denmark with respect to taxes on
income and on capital, and the protocol on provisions on clarification of
the convention which were both signed at copenhagen on 8th march,
1989.
 Vide Circular No 184/03/2015-ST dated 03-06-2015 issued by CBEC
providing clarification on rate of service tax on restaurant service.
MARKET WATCH:
SENSEX: 26793.22 -20.20 NIFTY: 8118.15 -12.50
SILVER: 37154.00 -18.00 GOLD (MCX): 26861.00 23.00
USD/INR: 63.91 -0.1 CRUDE OIL: 3716.00 -4.00
CS Rajiv Bajaj
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Date: 5th June, 2015

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Ajay Piramal,
Chairman of Piramal Group
EARLY LIFE:
Mr. Ajay Piramal was born on 20 December, 1955. He completed his Graduation in
Bachelor of Science from Jamnalal Bajaj Institute of Management Studies. He has
also done his post graduation from the same college.
CAREER PROFILE:
Mr. Ajay Piramal was 29 when his hard working father died suddenly in New York. His brother Ashok took over the
family business, but the cloud of grief was not yet off. Five years later his brother too died, leaving behind his young
widow, Urvi, with three children aged less than 10 years. Just before that, his other brother Dilip had decided to
separate his business. Meanwhile, a year-long textile strike dealt a crippling blow to the textile industry and Morarjee
Mills, the group's main business venture then, was in dark. Despite, having faced so much of sorrow and troubles Mr.
Ajay Piramal never had a sense of despair. Life looked bleak to him when he became chairman of the group at the age
of 29. But he survived. From owning what was then an almost defunct textile company, Piramal today is the chairman
of Rs 40 billion group, comprising Nicholas Piramal, the fourth-largest pharmaceutical company in India, Morarajee
Weaving and Spinning and Gujarat Glass. Piramal is also the chairman of the group's retail operations, which are now
looked after by his nephew, son of Urvi Piramal. "Disabilities and misfortune can make you stronger," Mr. Piramal
says, “The Lord must be pleased, indeed.”
In 1988, he heard from a friend that Nicholas Laboratories, an Australian MNC that was exiting India, is up for sale.
There were many large suitors but Piramal decided to meet Mike Barker, the man in charge of selling the company,
and told him that he had no track record, was only 33 but was confident of achieving his dream of putting Nicholas
among the top five pharmacy companies in India (from 48th at that time). Barker laughed with disbelief but he could
see the spark in Mr. Ajay Piramal’s eyes and decided to sell the company to him after hearing out the "young and
untried entrepreneur's" turnaround plan. At that time it wasn’t a very large investment, the total market capitalisation
of Nicholas Laboratories was Rs 5-6 crore. The investment was not very large. So nobody thought that it could be
significant portion of Piramals business other than Mr. Ajay Piramal.
Not Many people know that the first shopping mall in India -”Crossroad” is a brainchild of Mr. Ajay Piramal. Mr. Ajay
Piramal has a deep sense of concern for India. His take on government’s role in the current scenario of liberalisation
clearly put forth his intellectual and sharp mind. "Many people say that in a liberalised world there is little for the
government to do, but the fact is that there is much for the government to do in fewer areas. One such area is to
provide infrastructure," he said. To give an example, he spoke of the internet "Today people should be able to access
the Internet easily, which can help us bridge the gap with the developed world. The key task before us is how do we
catch up with the developed world? The Internet can bring us much closer to the developed world. But the
government is not providing the necessary infrastructure."
Mr. Ajay Piramal has seen myriad phases of life. He has come out of such miserable conditions which is not easy for
anyone. Today, when People find him in Forbes ranking #7 among richest Indians they look up at him as idol. But
very know about the hardship he has faced and how he has come up. He is truly a motivational personality for many.
AWARDS AND ACCOLADES
Positions held in the past:
 Member, Hon’ble Prime Minister’s Task Force on Pharmaceuticals & Knowledge-Based Industries
constituted by the Government of India.
 Member, Hon’ble Prime Minister's Council for Trade & Industry.
 Member, Board of Trade Constituted by the Ministry of Commerce.
 Member, Central board of directors of State Bank of India – India's largest commercial bank and is included
in the "Fortune 500" companies;
 Mr. Piramal has been attending the Annual Meeting of World Economic Forum in Davos (Switzerland) by
invitation over the last one decade. He was a Member of the World Economic Forum's Governors’ Forum on
Healthcare. He has often addressed at the WEF on various topics.
 Member of National Council of Confederation of Indian Industry (CII), which is one of the largest industry
associations in India.
His major Awards are:
 “CEO of the Year Award” by World Strategy Forum in 1999; Rotary International (District 3140) Certificate of
Appreciation and “Four Way Test Award” in 2001.
 Ernst & Young's Entrepreneur of the Year (2004) in the Healthcare & Life Sciences category
 Awarded "Entrepreneur of the Year" Award of UK Trade & Investment Council (2006)
 “India Innovator of the Year 2008” Award by CNBC TV18
 Kriyasheel global achievers award in 2010.