Newsletter CS Rajiv Bajaj 4th february,2015

1. www.csrajivbajaj.com
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THOUGHT OF THE DAY
“Leadership is a serving relationship that has the effect of
facilitating human development...”
Law Updates:
 RBI has been decided to reduce the Statutory Liquidity Ratio (SLR) of
Scheduled Commercial Banks, Local Area Banks and Regional Rural Banks
from 22.0 per cent of the Net Demand and Time Liabilities (NDTL) to 21.5
per cent with effect from the fortnight beginning February 07,
2015.(RBI/2014-15/445DBR.Ret.BC.70/12.02.001/2014-15dated 3.2.15).
 Over 50 companies of the Madras Stock Exchange (MSE) and Madhya
Pradesh Stock Exchange (MPSE), which were also available for trade on the
NSE, have been removed from the „Permitted to Trade‟ category of the NSE.
Some companies said they don't wish to go through listing procedure;
others may not qualify due to net worth and liquidity issues
 RBI has been decided to permit bonds issued by multilateral financial
institutions like World Bank Group (e.g., IBRD, IFC), the Asian
Development Bank and the African Development Bank in India as eligible
underlying for repo in corporate debt securities.( RBI/2014-15/447
FMRD.DIRD.04/14.03.002/2014-15 dated February 03, 2015).
 The Reserve Bank of India increased the limit for foreign spending abroad,
hold shares or debt instruments, or any other assets or purchase gifts up to
limit of $250,000 (Rs 1.5 crore) per person per year.
PROFESSIONALS INPUTS:
 Circular ref CIR/IMD/FIIC/1/2015 dated February 03, 2015 issued by SEBI
To All Foreign Portfolio and The Depositories (NSDL and CDSL) regarding
Change in investment conditions / restrictions for FPI investments in
Corporate Debt securities whereby All future investments within the USD
51 bn Corporate Debt limit category, including the limits vacated when the
current investment by an FPI runs off either through sale or redemption,
shall be required to be made in corporate bonds with a minimum residual
maturity of three years.
 Vide RBI Notification ref RBI/2014-15/444 REF.No.MPD.BC. 376/
07.01.279/2014-15 dated February 03, 2015, RBI has decided to merge the
Export Credit Refinance (ECR) facility with the system level liquidity
provision with effect from the fortnight beginning on February 7, 2015.
 DTAA amended with South Africa – Amendment in Notification No. GSR
198(E), Dated 21-4-1998 – 10/2015-FT&TR-II – Dated 2-2-2015.
MARKET WATCH:
SENSEX: 28996.31 -3.83 NIFTY:8752.70 -3.85
SILVER:38091.00 86.00 GOLD (MCX): 27590.00 92.00
USD/INR: 61.65 -0.04 CRUDE OIL: 3236.00 183.00
CS Rajiv Bajaj
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Date: 4thFebruary, 2015

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Qimat Rai Gupta,
Founder, Chairman& MD,
Havell’s
“My Father Was A Man Of Modest Means. Earning Respect and Making
My Family Financially Stable Has Been My Key Motive throughout My
Life”, Qimat Rai Gupta
Brief Profile:
His entrepreneurial journey which started from an electrical shop at Bhagirath Palace, Chandni
Chowk, to become the fourth-largest lighting company in the world! Not everyone who starts with a
brand bought with Rs.7 lakh in 1971 achieves that much success. His wife Vinod and his son is Anil,
Joint Managing Director. Havell‟s have a turnover of Rs. 5,300 crore in 2009-10. Havell‟s acquired
Frankfurt based SLI Sylvania lighting business in 2007 which surprised many as Sylvania was the
bigger company! Havell‟s decided to go ahead as they had done extremely well over the years. Well,
there is no right or wrong way of expanding your company and plenty of factors are in the making to
achieve success including luck! On luck we have no control!! Soon after, in 2008, a combination of
adverse events created major problems for the company, but Anil and his cousin Ameet came up with
a comprehensive restructuring plan which worked and by 2010 the company became profitable again.
In any meteoric rise, sometimes the unexpected happens and the ones who have “prepared minds
over a period of time” come out of the “storm” stronger to go up and up and away again!
Behind the Success:
Qimat Rai attributes his business family‟s success to the trust they cultivated in their employees and
the management concept of delegation did the rest. They hired professionals and with Anil and Ameet
the team achieved wonders and Havell‟s has become a self-inspiration and self-motivation for Indian
entrepreneurs. Anil attributes Havell‟s success to their efforts in the area of R&D on which they are
spending nearly 1.5 per cent of their revenues. Also due to a wide distribution network spanning 50
countries in Asia, Latin America, Africa and Europe. And a diverse product portfolio catering to
household, commercial and industrial needs.
SUCCESS MANTRAS…
 There is no right way of expanding your business
 Do not be afraid of taking bold decisions
 Earn respect through your deals