AGAINST ALL ODDS PYARE KHAN ON RISK, JUNE 2021 - Vidarbha Industries ...
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JUNE 2021
A MONTHLY BULLETIN PUBLISHED BY VIDARBHA INDUSTRIES ASSOCIATION
EXCLUSIVE INTERVIEW
AGAINST ALL ODDS
PYARE KHAN ON RISK,
PERSISTENCE, LEADERSHIP AND LOTS MORE
e Vidarbha as a preferred investment destination and create
environment for socio-economic growth through industry and
VISION
To promote Vidarbha as a preferred
investment destination and create PRESIDENT’S
conducive environment for
socio-economic growth through
MESSAGE
industry and services Dear Fellow Members,
You all must be feeling a little relieved as the pandemic’s
MISSION 2nd wave seems to have come to an end. I hope all
of you must be taking good care of your families,
To act as a catalyst between various employees and businesses.There are growing concerns
stakeholders and authorities.
for a possible 3rd wave and we must have a backup
To create harmonious environment plan ready.
for accelerated industrial growth.
Post the 2nd wave, realising that the virus can create
To provide a unified platform for an untimely void in any family, VIA organised a session
policy advocacy at all levels.
on estate and succession planning by CA Pankaj Shah,
To create, nurture and develop primarily to share the importance and advantages of
MISSION
MISSION
entrepreneurship and business writing a will. If you’re interested, you can check out the
leadership.
To act as a catalyst between various stakeholderswebinar
and authorities.
on YouTube.
To create harmonious
To enhance environment
managerial and fortechnical
accelerated industrial
I am glad growth.
to inform you that 28 VIA member companies
To provide a unified for
competency platform for policy advocacy
excellence at all levels.
are willing to, and 29 others have shown interest, to
eate, nurture and develop entrepreneurship and business leadership.
contribute more than ₹3.29 crores from their CSR funds
To enhance managerial and technical competency for excellence.
to strengthen Vidarbha’s health infrastructure.
CONTACT In our continued support to the local administration
EDITORIAL
Vidarbha BOARD
Industries Association, in the fight against the pandemic, VIA requested over
Editor:
1st Floor, Prof. Ashit
Udyog Bhawan, Sinha
Civil Lines, Nagpur 150 companies to surrender their oxygen cylinders to
+91 712-2561211/2554090 the region’s hospitals. I am grateful to and proud of all
Dr.www.via-india.com Mr Rohit Agrawal
Suhas Buddhe| viangpindia@gmail.com
these contributors.
Mrs Anita Rao Ms Sei Deshpande
Download the VIA App Many in our fraternity are still going through the
trauma of managing bank loans, repayments, tax
filings, interests and penalties, expenses, workforce
management, legal compliance, etc. We have taken
nt Events Live, Real Time Industry Updates & Stay Connected on
/vidarbhaindustrieassociation
the VIA App
proactive & Social
steps to address these issues with relevant
authorities and hope to generate required support.
ndustrieassociation /viasocialngp /viasocialngp /viasocialngp
/viasocialngp Over several meetings, we’ve discussed these points
stries Association, 1st Floor, Udyog Bhawan, Civil Lines, Nagpur – 440001,Industries
with Hon’ble India Minister Shri Subhashji Desai,
Call: +91 712-2561211/2554090 Hon’ble State Minister of Industries Adititai Tatkare, CEO
EDITORIAL BOARD
www.via-india.com viangpindia@gmail.com of MIDC Dr. P. Anbalaganji, Shri Dineshji Waghmare -
Principal Secretary of Energy, as well as all the relevant
officers.
Mr Suresh Rathi
I hereby request all of you to share your problems
Mr Aditya Saraf
and help us serve you better. We will be awaiting your
Mr Gaurav Sarda valuable suggestions for making VIA’s work more
Mrs Anita Rao useful. Your strong association and cooperation gives
us great strength.
Mrs Shobha Dhanwatey
Thanks and warm regards
Ms Mili Juneja
Ms Sei Deshpande
Suresh Rathi
President
1
cited examples from Mahabharata as well as
several recent cases to explain the fundamentals
of succession planning - prevailing global
practices, pros and cons of powerful planning
SECRETARY’S tools, and the laws governing succession.
MESSAGE We also reached out to key government officials
and departments with representations on matters
Greetings,
such as request to extend notification regarding
The month of May was kickstarted when VIA certain Environmental Clearance (EC) projects
Marketing Forum invited Sanjay Singh - Founder related to API & Intermediate Manufacturing as
of Strategic Concepts (I) Pvt. Ltd., to speak about ‘Category B2’ Projects. The representation was
business development during the pandemic. submitted to the office of Prakash Javadekar -
With the economy buckling under the pressure Hon’ble Union Minister of Environment, Forest
of COVID-19, Singh explained how technology & Climate Change, Government of India, New
can be used in ways that transform weak market Delhi.
conditions into a business development strength.
As always, VIA Secretariat strives to serve the
Reimagining “technology” as “tech-know-logy”,
best interests of industries in Vidarbha. I request
he urged MSME owners to learn about the
all our readers to have a
several functions of technology that can help
positive outlook during these
them better leverage their human resources.
difficult times and participate
VIA Taxation & Corporate Law Forum organized in all the engaging activities
a session with industry experts to highlight the we have scheduled for the
importance of succession planning amongst the coming months. Gaurav Sarda
industrial fraternity. During his talk, CA Pankaj Secretary
Shah - eminent speaker and expert on the subject,
a will as an instrument for succession planning.
In the exhaustive piece, he highlights the
advantages of making a will, its registration
process, as well as important tips and tricks
EDITOR’S while writing it. We also have Rajiv Choudhari
MESSAGE - CMD of Vishwadatt Minerals Pvt. Ltd., who
writes on the agricultural scenario in India in
Dear Readers, 2021. Guest articles from Mr. Hemanth Lodha,
on the importance of leadership in a team, and
We have the man of the moment on this month’s
Mr. T.S. Rawal, who explains investing practices
cover of the Enterprise. Pyare Khan - MD of Ashmi
during the uncertain times of the pandemic, add
Road Carriers Private Limited, made national
to good reads in the Enterprise this month.
news recently when he spent a crore of his own
money to truck in liquid oxygen for the entire It is our endeavor to bring to you the latest
city of Nagpur. Hailed as a hero by many, Khan’s and most important news related to Vidarbha
rags-to-riches career is a master class in the and its industries. We welcome write-ups
ingenuity and resilience of a true entrepreneur. from readers to be published in subsequent
In an exclusive, off-the-cuff conversation editions of the ‘Enterprise’. Please write to us at
with the Enterprise, he opened up about his viangpindia@gmail.com with your inputs and
insuppressible persistence, the joys of becoming feedback.
a job-giver, secrets to overcoming intimidating
challenges, and many more incredible insights
from his awe-inspiring journey.
This edition features an article by CA Naresh
Jhakotia who examines the legal document of Aditya Saraf
Editor
2
AGAINST ALL ODDS
other competitor in the market at the time.
What was Singh doing that set him apart?
He used to focus on things that delighted
PYARE KHAN
clients. Most orchestras in the market were
MD of Ashmi Road Carriers
charging ₹5-6 thousand for full day gigs.
Private Limited
Meanwhile, O.P. Singhji used to take ₹1-1.5
There’s a good chance you already know a lakhs. His service was exceptional; his shows
version of his story. Pyare Khan - MD of Ashmi used to be full of splendour. Think of it as
Road Carriers Private Limited, was once an eating in a 5-star hotel where you pay ₹150 for
auto wallah and an orange seller. Living in the a bottle of water that’s worth ₹15 everywhere
slums of Taj Bagh, Khan pieced together money else. Singhji was that 5-star hotel. He had
from the banks and, against all odds, built a tremendous marketing skills.
transportation empire that is worth ₹400 crores
in turnover today. Much has already been written You have borrowed over ₹100 crores for your
about his rags-to-riches story. IIM-Ahmedabad business. How does one manage credit of
has a case-study on his career and Mahindra & that scale, without it turning into a burden?
Mahindra Limited has given him an award for Your repayment track should be good. If you’ve
his excellence in the transportation industry. been diligently repaying your ₹1 loan to the bank,
He’s an acclaimed transporter in domestic, as it won’t be long before they trust you with ₹100
well as international markets. or even ₹1 lakh. When I started, my first priority
was to ensure that money goes back to the
Last month, when Vidarbha was in the bank. This was important because, as you know,
grip of the most destructive outbreak of the I had no money, and one couldn’t survive in the
coronavirus yet, Pyare Khan made news once transportation business without good credit.
again. Spending an amount close to ₹1 core
from his own pockets, Khan trucked in at least I’ve seen that some businessmen borrow
400 metric tonnes of liquid oxygen at the huge sums of money and then purchase
GMC. He procured the oxygen from various property with it. That’s where they fail. See,
obscure sources in the country, at rates much anyone can get a loan. What you do with the
higher than their market value. Now, the local money is what sets you apart. As for me, I only
administration has tied up with his endeavour take loans for my business requirements and
and they have together wheeled in enough ensure that that’s the only place my money is
oxygen to meet the entire city’s requirement, spent. That’s why the banks trust me today.
and then some. The national press has declared
Like you said, you had no money. You fought
him a “Good Samaritan”, a “real hero”.
terrible circumstances and got where you
In an exclusive, off-the-cuff conversation are today. In retrospect, do you think that
with the Enterprise, Khan opened up about his your hunger and suffering were essential to
insuppressible persistence, the joys of becoming becoming successful?
a job-giver, his secrets to overcoming intimidating No, no. Bad times aren’t necessary for success.
challenges, and many more incredible insights These days, even the rich are struggling. To be
from his awe-inspiring journey. Excerpts: successful, you need to take risks.
In one of your past interviews, you speak of I will give you an example. This one time,
your early experiences playing as an artist with O.P. Singhji agreed to do a show in Sambalpur,
O. P. Singh and his orchestra. You observed Orissa. But the client wanted us to sing in Odia.
that despite not having any experienced / We were artists from Nagpur - none of us could
well-known singers or musicians, Singh’s band speak the local language! That was Singhji’s risk.
was earning exponentially more than any When we reached Sambalpur, he immediately
3
scouted two local singers and taught them the I only have two hands; without a team, I can’t
songs. We did that show and pocketed ₹4-5 achieve anything.
lakhs. Had he not taken that risk that day, we
When we talk about challenges, I believe that
wouldn’t have earned that kind of money.
we should look at even the greatest obstacles
I have taken huge risks in my business. I as minor hindrances. If I start believing that
worked in places where no other transporter a challenge is bigger than me, I will never be
wanted to work. I wouldn’t have progressed able to overcome it. After all, only those who
otherwise. believed that they could go to the Moon, were
able to go there.
Key Takeaways:
- Anyone can get a loan. What you do with the I see that a lot of people get caught up in
money is what sets you apart. whether they should take up a challenge or
- Bad times aren’t necessary for success. not. My advice to them is simple, “Try, my
These days, even the rich are struggling. To friend. Whether you find success or failure,
be successful, you need to take risks. don’t stop trying.”
- I only have two hands; without a team, I can’t
Your group of companies has legs in several
achieve anything. sectors and sub-sectors of the transportation
- If I start believing that a challenge is bigger industry - road transport, rail transport,
than me, I will never be able to overcome it. ocean transport, fleet management, railway
- When you take care of every small thing for rakes and container handling, toll plaza
your clients, why will they ever turn to other management, etc. You also own petrol pumps
suppliers? and your group has plans to enter the coal
- If you waste time in proving yourself industry in the future. Will you ever diversify
right, there will be no progress achieved. into less capital-intensive sectors like
Sometimes, you have to move on. consumer goods, where the dependence on
- Whether you have big clients or small, a differentiation and advertising is more?
neck-to-neck approach in liquidity is never I am definitely interested in branded products.
advisable. We have a separate team dedicated just to
- Whatever work you do in a day, delegate it as innovate and try new ventures. We even have a
much as possible. Keep yourself free. separate budget set out for this very purpose.
- Despite being a first-time, non-corporate We don’t see whether we are making a profit
company, my clients trusted us because or not; what matters to us is that we keep
we did their work sincerely and gave them trying new things. I believe that if you can think
exceptional service. beyond what is visible, you can achieve it too.
- I want the young generation to become job-
creating entrepreneurs and industrialists, rather We were speaking about the importance of
good service earlier. How do you react when
than settle for the 9 to 5 life of an employee.
a valuable client is unhappy, or worst still,
In 2018, your presentation won the prestigious angry with your service?
Mahindra Transport Excellence Award at IIM- I will give you an example. Until recently, there
Ahmedabad. When a jury member asked you was a nationwide oxygen shortage in hospitals
what your biggest challenge could be in the across the country. Nagpur was no different.
future, you said, “With the right team, no People were rushing from one hospital to the
challenge is big enough”. Elsewhere, you have other. Then, how did the supply bottleneck
mentioned that your zidd, or persistence, has resolve so quickly after we stepped in? It
propelled you forward. Of the two, which has happened because we focussed on doing
been the greater advantage? exactly what nobody else was doing. That’s our
My biggest advantage is my persistence. Then approach when dealing with our clients. When
comes teamwork. That’s because without you are taking care of every small thing for
persisting, I can’t get my team to work. See, them, why will they ever turn to other suppliers?
4
The other thing is, we have a lot of patience. time at IIM-Ahmedabad. They said, “Whatever
Sometimes it so happens that a client, despite work you do in a day, delegate it as much as
being the one responsible for a mistake, may possible. Keep yourself free”. I really liked this
be dead set to shift the blame on you. In advice and implementing it in my business has
such situations, you can’t engage them in an really contributed to my growth. You should
argument. They are your business associates really learn how to delegate work to others.
and you have to be able to listen to them, even You have 12 working hours in a day. A ₹1 crore
if you know they are wrong. If both parties project can be executed in the same 12 hours as
waste time in proving themselves right, there a ₹100 crore project or a ₹1000 crore project.
will be no progress achieved. Sometimes, you If you try to do all the work yourself, you won’t
have to move on. even have a second left.
Big clients need longer credit periods. Sounds easier said than done.
Moreover, if you have a limited client base, See, you have to be a good leader. You have
the threat of defaults always looms large. to be like that politician who gives speeches
Delays in payments can really hurt a young in front of lakhs of people at a time. You have
business, especially during the pandemic. to have that quality where people truly like
How does one overcome the challenges of listening to you.
liquidity crunch?
With all your work delegated, how do you
This problem is bound to come. We have
spend your time in office?
set aside a ₹5-6 crore cash reserve for such
My main job is fund-management. I track the
situations. The bank gives a temporary
performance and locations of my fleet of 300+
overdraft and discounts as well. It’s good to
trucks and instruct them on a daily basis. I try
have an extra arrangement for emergencies.
to answer three questions - “How much money
Whether you have big clients or small, a neck-
do I have?”, “How much money do I need to
to-neck approach is never advisable. I have
invest?”, and “How much money is due to be
faced this challenge several times in my career
recovered from clients today?”. Apart from
but I always managed my money properly.
that, I review the bottom-line. That’s all.
India has a long history of “lala” style family-
What is your advice for young transporters
run businesses that squeeze value from their
looking to enter this capital-intensive
stakeholders, have penny-pinching policies,
industry?
and issue self-interested diktats. You, on the
I am a first generation entrepreneur. Before
other hand, have spoken extensively about
specialising in ODC (Over Dimensional Cargo),
developing a corporate-style professionalism
I was a normal transporter. I focussed on
in your company. How does a small business
ODC because there was a lot of money in
make this shift from being a “lala company” to
it. Initially, no client was ready to trust me. I
a professional corporate?
had to win their trust by proving that I could
Just do one thing — have a big heart. I’ve provide better service than anyone else. I was
seen owners of such lala companies who are the first transporter in Nagpur to get a work
taking projects worth hundreds of crores, but order worth ₹500 crores in the steel industry.
resist paying even a lakh in salaries. They feel Despite being a first-time, non-corporate
that they are the smartest amongst all their company, they trusted us because we did their
employees. This obviously isn’t true. I believe work sincerely and gave them exceptional
that people can be smarter than me. I certainly service.
don’t think I have all the knowledge in the
I was also ready to do the work nobody else
world. That’s why I hire the top-talent from all
was doing. In ODC, I took work orders in far-
over the country and reward them handsomely
off or conflict-prone regions of Ladakh, Kargil,
for their jobs.
Nepal, Bhutan and Bangladesh. We put our
There’s a great lesson I learnt during my lives on the lines to deliver great service. That’s
5the reason we are trusted by our clients today. that there is no dearth of workers in our
country today. However, there is an enormous
These days, cost saving is the biggest priority
shortage of work-givers. I want them to
for many entrepreneurs struggling due to the
become job-creating entrepreneurs and
pandemic. In your experience, what are the
industrialists, rather than settle for the 9 to 5
best ways to cut costs in a venture?
life of an employee. They should be willing to
First of all, I will never reduce my staff in
the name of cost-cutting. That’s the easiest take risks - both for themselves as well as for
thing to do. I don’t believe in that. Rather, I their country.
have asked my team to fix the leakages in Today, I have about 1200-1300 people
our systems. Doing so has been educational. working with us. If my businesses were wound
We have implemented basic techniques like up today, my family and I would still live out
increased monitoring of expenses, and shrewd our days in comfort. However, at this level, you
negotiations with vendors. If anything, we
can’t be working for yourself anymore: you
have increased salaries from this financial year.
have to work for the people. This isn’t to say
In parting, is there any word of advice you’d that we are not making money or that we are
like to give to the young entrepreneurs in running a charity. What I am trying to say is
Vidarbha? that the happiness one gets from giving work
I want our young generation to understand to others is simply priceless.
TECH-KNOW-LOGY TO DRIVE BUSINESS
DURING PANDEMIC
• Automated email marketing campaigns (for
existing and lost customers from last 5 years)
• Automated marketing campaigns (for invisible
SANJAY SINGH customers who aren’t on one’s radar)
Founder, • System controlled marketing surveys
Strategic Concepts (I) Pvt. Ltd. • Customer feedback tools
VIA Marketing Forum invited Sanjay Singh - • Content development tools
Founder of Strategic Concepts (I) Pvt. Ltd., to • Online customer experience enhancement
speak about business development during the utilities
pandemic. The speaker highlighted how technology is
turbocharging social media marketing today;
With the economy buckling under the
from interactive content generation to social
pressure of COVID-19, Sanjay explained
listening, social conversation and finally -
how technology can be used in ways that
generation of inbound traffic on one’s website
transform weak market conditions into a
and landing pages. Sanjay further explained
business development strength. Reimagining
how online schedulers assist in pre-scheduling
“technology” as “tech-know-logy”, he urged content for the month, and how online data
MSME owners to learn about the several analytics help match one’s content with an
functions of technology that can help them appropriate audience.
better leverage their human resources.
According to the speaker, allocating relevant
The session focussed on key concepts like work to WFH employees is perhaps the biggest
• Drip lead generation pain area for MSMEs. As such, there are several
• Automated lead responders digital platforms that facilitate efficient team
• Automation in pre-qualification of sales leads collaborations, work assessments, and closing
• System-empowered customer relationship of work loops through lateral concurrent
management discussions online.
65 WAYS TO OPTIMISE YOUR
PROCUREMENT PROCESS
as a series of low value, low-risk transactions,
the time spent is not worth the reward. The
best way to deal with tail spend is to identify it
CA PRATIK LOYA with spend data and pair it with tools such as
Founder tactical sourcing and procurement audits.
Jugaadubaba Business
Managing cost has been fundamental to Improve Product Specifications: By
procurement. Considering the current situation improving relationships with suppliers, one
of the industry, it’s no surprise that efficiently can learn about innovations in the industry.
spending every penny is more important than With the help of value engineering, one can
ever. Procurement leaders must come up bring new ideas to product planning and
with innovative ideas to help the stakeholders development and identify new alternatives.
improve margins by driving down costs. Price Negotiation: Being equipped with
We often rely on reducing discretionary appropriate data and strategy makes it
spending, but once it’s been successfully easier to negotiate with suppliers. It’s critical
reduced, what’s the next step for finding new that whenever one builds their negotiation
ways to cut costs? Here are few ideas that may strategy, one should know a few important
help procurement professionals move beyond things: leveraging position, what one wants
the noticeable optimisations and rethink how to achieve, and when to walk away from the
to increase savings and reduce costs: table.
Optimise Supplier Base: Looking out for the Market Cost Analysis: Market analysis is a
right supplier and when to bid competitively tool to identify present market conditions for
builds a sustainable supplier base. It begins particular goods or services. Leveraging this
with supplier rationalisation and category information with spend data provides unique
planning to initially reduce not-so-frequently- insights that are critical to an efficient and
used suppliers, thus spending more time with effective procurement planning and strategy.
lesser suppliers to reduce costs.
Tame Tail Spend: Tail spend is the amount of “Don’t worry about failure. You only
money that a company spends on purchases have to be right once.”
that make up ~80% of transactions but only 20% – Drew Houston
of total spend volume. Since these are viewed
7INVESTING DURING UNCERTAIN TIMES
first wave. Unemployment, underemployment
and disguised unemployment are at their
peak. Job creation may not happen in the near
DR. TEJINDER SINGH RAWAL future.
Chartered Accountant
tsrawal@tsrawal.com After the first lockdown was opened up,
It seems we will have to live with COVID-19 the economy had witnessed pent-up demand.
for quite some time. Last year, around the same While the restrictions on availability are more
time, we thought it was something with a short stringent in the second phase (even online
shelf life that would go away soon. That did vendors are not allowed to deliver what the
not happen; we hoped that once the vaccine government considers as non-essentials), we
becomes available, the pandemic will be out anticipate less demand emerging after the
of our lives. We are yet to see that happen. lockdown is over. Uncertainty, unemployment
The second wave has taken us by surprise. and the perception of a bleak future are causing
people to save whatever resources they have.
There is a noticeable difference between the Many families have footed huge medical bills
first and the second wave. In the first wave, the for treatment, many lives have been lost.
authorities focused on ensuring that people People are suddenly in savings mode. The
remain confined to their homes. With some opening of the economy after the lockdown
restrictions, businesses were open. Industry this time will not see the demand we witnessed
was working but with bottlenecks, as the free earlier. The enthusiasm will be lacking. This
movement of people and transportation of time there are no supply chain bottlenecks as
goods was affected. Imports were severely the wheels of industry run smoothly because
affected, causing supply chain disruption. The of more pragmatic guidelines. We might face a
second wave lockdown is more relaxed in the situation of sluggish demand, and a downward
sense that it did not curb the free movement
spiraling economy.
of people to that extent, but controlled shops
and businesses so that people do not have a The stock market continues to behave as
valid reason to roam around and crowd places. if nothing has gone wrong. Clearly bulls are
in charge. The results of the first quarter will
This difference in the nature of lockdowns
look better because of low base effect: the
has different economic consequences. In the
industry was in a state of virtual standstill in
first lockdown, people felt they had been
the first quarter of the previous year. However,
confined to house arrest. They wanted to
as we proceed further, industry may not show
buy things but could not because they were
impressive results. The dent that the pandemic
not allowed to move freely. The demand
has created may not end soon. Investors
continued to rise but the production could not
need to tread this with caution. Long term
keep pace with the demand because of the
investment is the only investment strategy
bottlenecks. In the second lockdown, people
that can work in all times, and especially in
have learnt a lot from the previous experience.
uncertain times such as the present.
We now know that the pandemic is not going
to go away soon. We have an acute shortage The investor must keep the following
of vaccine, herd immunity is a distant dream in mind as a guide to safe and defensive
which will take a year or more, the healthcare investment -
infrastructure is fragile or non-existent. We 1) No investment is possible unless you save.
also know that to survive we need to dig into Saving is a prerequisite. Save as much as
our savings. We are facing harsh realities of the you can, as early as you can.
pandemic, which we were not aware of in the 2) The long term investment is, well, long
8term investment. If you need some money trading hours. They buy quality stocks
in the short term, it may not come out of and keep them aside. Momentum trading,
long term investment. If you have to pay a intraday trading selling short are not the
college fee for education abroad and it falls stuff that will make you a real investor.
due in 6 months, your long term investment 6) Do not invest on tips. Stay away from
may not help. Since the equity market is in a fortune-tellers who sometimes show up as
constant flux of greed and fear, you cannot formal suit-wearing experts on CNBC. Do
predict the market direction on the day your homework. I do not invest in companies
you need money. Always keep a provision whose business model I don't understand.
for expected short-term requirements and I do not buy stocks of companies that
keep it aside in liquid non-fluctuating assets. have not been making profits for 10 years
3) When I say long term, I mean a period of continuously. I look at the PE ratio, and look
minimum of 5 years. To some like Warren for the debt component in the company's
Buffett, and I, the holding period is eternity, balance sheet. I do not buy a heavily
I do not sell my equities unless I direly need indebted company.
money, or I have made a wrong investment 7) Do not time the market. You cannot.
decision, or one of my investments has Outstanding stocks are available in all
fallen permanently (change of technology is market conditions. It is only in retrospect
an example of things that may bring about that you will know if the market was high or
such a change). I seldom sell for any other low. You are too small a player in comparison
reason. to the market size to time it.
4) Diversify. Do not trust all your eggs in one 8) Learn to be a contrarian. Learn to buy when
basket. However, too much diversification others are selling. The market is manic
makes your return lower. My ideal depressive, it suddenly quotes too high
diversification plan is to invest in 20 stocks, or too low; buy when it is quoting low. Be
and I also diversify between different fearful when others are greedy and be
sectors. Some sectors run contrary to greedy when others are fearful.
others, diversification helps you balance. 9) Trade less. Money is made by sitting on
During the COVID-19 pandemic, while your stocks. If you frequently churn your
many sectors have lost value, FMCG and portfolio, you are making money for your
pharmaceuticals have gained. stockbroker.
5) Ignore the day-to-day fluctuations. Long- The author is a Chartered Accountant,
term investors do not bother about how economist, and thinker. He can be reached at
their investment behaves in the short term. tsrawal@tsrawal.com.
They are not glued to the screen during
To know more, visit www.vialewudyojika.com/store/decokraft
9AGRI SCENARIO IN INDIA 2021
to make a positive impact on GVA this year,
the spread of this disease in rural areas needs
to be controlled. The government must push
RAJIV CHOUDHARY accelerated vaccination drives in villages
CMD, across the country to support the farmers.
Vishwadatt Minerals Pvt. Ltd.
Agriculture is the primary source of Excessive regulation is also a big concern.
livelihood for about 58% of India's population Recent policy changes have brought thousands
and must never be underestimated. The of our farmers to the capital’s backyard and
country’s small land holdings, illiteracy, lack they continue to wait for an amicable solution.
of irrigation, lack of innovation and sole Similar policies have had a major impact on
the industry at large.
dependency on precipitation and rainfall, have
left farmers helpless. Traditional approaches The MSME sector in India is the second
and unscientific farming methods still loom largest employer after agriculture and has
large over the Indian agricultural space. taken a major hit across the board. The
pandemic has not only affected production
Agricultural productivity depends on
and marketing through labour and logistical
factors like the availability of quality seeds,
constraints, but has also restricted access
fertilisers and other crop protection inputs,
to markets due to restrictions on inter-state
access to agricultural credit and crop insurance,
movements and absence of transportation.
assurance of lucrative prices for produce,
This has disrupted the food supply chains and
etc. However, due to the several lockdowns
spiked food prices. It’s safe to say that the
imposed across the country, all these facets of
pandemic has disrupted the Indian agricultural
farming have been heavily affected.
system extensively. Extended lockdowns have
COVID-19 induced lockdowns have had a negative impact on supply of finished
disrupted agricultural labour markets that goods, procurement of raw material, and labour
have witnessed huge reverse migration. availability in production and supply processes.
Even as the main agricultural season (Kharif)
To add to the woes, the recent cyclones
trickles nearer, the effects of the pandemic in
came bearing down just when the farmers were
rural India are getting worse by the day. The
wondering as to how they could sell their ready-
lockdowns imposed have shut operations of
to-harvest crops with no demand. This year has
retail sellers and restricted their movement,
been merciless beyond bounds and is causing
constrained the movement of goods severely,
our farmers and manufacturers of the industry
and—despite their ‘essential service’ tag—shut
great economic and psychological losses.
down some mandis and markets.
There is an urgent need to identify
It’s estimated that the agricultural sector
problems that threaten the agriculture sector.
will grow by 3% in 2020-21(NITI Aayog), owing
The Ministry of Agriculture is taking steps
to normal monsoons this year, along with
to refine the process to benefit the overall
India’s water availability in reservoirs, which
business environment. However, private
is 40-60% higher than last year. Food grain
sectors’ participation is crucial to overcome
production in India is expected to increase to
bottlenecks arising in the system. This is
345 million tonnes by 2030 (ICAR).
critical for the success of various policies
The global prices of commodities are ruling announced by the government. It’s imperative
high and farmers in India have a chance to for the Centre and State governments to come
earn on export of cotton, fruits, guar gum, together and ensure a sustainable growth plan
maize, soya bean, etc. However, for agriculture for our country.
10TEAMS NEED LEADERS
leader will be there. However, it’s the prime
duty of a leader to set vision, give direction,
create motivation, credit success to team
HEMANT LODHA members and take blame for the failures.
Chairman, HRD Forum, Leaders need to be flexible according to the
VIA
team, time, and situation but never towards
A great project is completed or an event is the goal. Whether one needs to lead from the
over and we hear that it was great teamwork. front or the back or be hidden, depends on the
Even the person who was leading it overtly or group, situation, and time.
covertly will say with modesty that I have done
nothing. It was teamwork. There is no doubt It is also important to know whether your
that one person cannot complete a big project role is of a leader or a follower in a given
alone but, at the same time, it’s also true that situation. Sometimes, it switches during the
even a hundred people will achieve nothing if same project or event. However, if you lack
there is lack of direction. wisdom and flexibility to adjust, you may
become the cause of failure for the entire
When birds fly in a group or animals walk project. Change your leadership style based
in a herd or ants are at work, there will be one on the situation — this is called situational
among them who will be leading towards the leadership.
goal. They might be autocratic or democratic,
but there will always be a leader if the project
or event is completed with great results or “You have to be burning with an idea,
the organisation is operating efficiently and or a problem, or a wrong that you want
effectively. to right. If you’re not passionate enough
from the start, you’ll never stick it out.” —
A leader will sometimes be like a pendant - Steve Jobs
in a necklace or a thread in a garland, but the
VIA REPRESENTATIONS – JUNE 2021
18th MAY projects related to API & Intermediate
Prakash Javadekar, Manufacturing as ‘Category B2’ Projects.
Hon’ble Union Minister of Environment, Ref: Ministry of Environment, Forest &
Forest & Climate Change, Government of
India, New Delhi. Climate Change Notification No. CG-
Request to extend notification regarding DL-E-28032020-218947, dated 27th March
certain Environmental Clearance (EC) 2020.
VIA NEW MEMBER PROFILE
VIA Welcomes Its Newest Member to the Association
UMESH H. PATEL
Managing Director,
Orange City Plywood Pvt. Ltd., 16 KM Mile Stone, Bhandara Road,
Mahalgaon, Dist. Nagpur - 441202.
11ESTATE AND SUCCESSION PLANNING
witness to the will.
- In corporate houses, an Advisory Board can
be formed.
- In case of partnership or LLP, a succession
CA PANKAJ SHAH clause can be inserted by making an
Partner - G.J. Shah & Co.
amendment to the partnership deed.
VIA Taxation & Corporate Law Forum - Laws such as Hindu Succession Law, Shariat
organized a session with industry experts Law, Transfer of Property Act, Income Tax
to highlight the importance of succession Law, etc. should be considered and legal
planning amongst the industrial fraternity. professional advice should be taken while
succession planning.
In his introductory address, CA Naresh
- A partition can be full or partial.
Jakhotia - Treasurer of VIA, said that ignoring
- If succession planning through a private trust,
succession planning almost always leads to
one must consider various IT Act provisions
financial and emotional disturbances and should
carefully.
therefore be part of every person’s tax planning.
- The government is thinking of an Inherent tax
“Death and tax are certain in life but one needs
that will make private trusts a good option
to plan gracefully for the former”, he remarked.
for tax planning.
CA Ashok Chandak - Chairman of VIA
Taxation & Corporate Law Forum, said that
successors have to suffer through agony, “Don’t sit down and wait for the
mental torture, and harassment in order acquire opportunities to come. Get up and make
the wealth created by the diseased person. them.”
Chandak explained that out of the many ways - Madam C.J. Walker
to plan a succession, the best method is that
of a will or, in some cases, a family trust. “One
should plan the affairs in such a way that
successors get the wealth timely, without any
hassle, litigation or disturbance of business”,
CA Chandak added.
During his talk, CA Pankaj Shah - eminent
speaker and expert on the subject, cited
examples from Mahabharata as well as several
recent cases to explain the fundamentals
of succession planning - prevailing global
practices, pros and cons of powerful planning
tools, and the laws governing succession.
Highlights from his presentation -
- In the current pandemic situation, succession
planning is a necessity.
- Succession planning differs from person to
person and from business to business.
- A will may be registered or unregistered.
- In case of the will of an individual, an executor
is a must.
- Major beneficiaries of the will cannot act as To know more, visit
vialewudyojika.com/store/disha-designings/
1213
ESTATE AND SUCCESSION PLANNING
THROUGH WILL
to the family members if no will exists. In the
absence of a will, property normally gets
distributed equally amongst heirs, according
to the succession laws in case of Hindu
CA NARESH JAKHOTIA deceased. For example, in one of the cases, the
Treasurer- VIA
son was suffering from life time imprisonment
There are only two things that are certain and absence of will resulted in the transfer of
in life - death and tax. Like it or not, these two property to him rather than his grand son or
things need to be admitted gracefully. A will daughter in law. Without will, estate is passed
is simply a legal document in which a person on according to the succession laws applicable
declares as to who will manage their estate to the religion of the person dying. By will, one
after they die. Asking the person to prepare can plan as to whom the property should be
the will is often considered as if you are telling given through will.
the person that their end is near. We all think
and believe that it is too early to think about #3. Distribution according to the need and
preparing a will. Unwillingness to accept death contribution of the person
Every family structure is diverse and so is
as part of life is the main reason for not making
the contribution and dependability of the
a will. This pandemic and its impact has made
family members. The requirements of wealth
us realize the fact that life is uncertain and
distribution among family members are also
it is sensible to prepare earlier. Further, old-
different. Unequal distribution of assets is not
age comes with several physical and mental
possible without making a will. For example, a
illnesses, making a person incapable of doing
person can peacefully pass on the businesses
the documentation in the desired way. Court
to one who is taking care of business rather
statistics prove that a will prepared at an old
than leaving it on to a legal heir to negotiate
age often generates doubts and disputes later.
and resolve. Distribution to friends, servants,
ADVANTAGES OF MAKING A WILL etc. after death is possible only if it is mentioned
There are numerous benefits of making a will in the will.
and serious consequences to follow if a will is
#4. Equitable and logical distribution of
not prepared.
wealth as against equal distribution
#1. Avoiding the long, time-consuming A will can take care of “who, what, when, why”
process of transfer of the assets distribution. A person making
A will can ensure hassle-free passing of the will knows what belongs to whom, their
the wealth to the legal heir, without any contribution, conditions, attachment, nature
complexities. Without a will, the process could in the family. Subsequent family disputes and
be longer, tedious and little expensive. In conflicts could be avoided by making the will
absence of will, legal heirs are often required with suitable explanations.
to approach the court for a succession
#5. Attaching an obligation to the assets
certificate, which is not only time-consuming,
given
but also involves a lot of paperwork.
By making a will, one does not only distribute
#2. Ensuring distribution by choice wealth; they can also attach obligations and
Laws of inheritance and succession are responsibilities like who will take care of the
complicated and diverse in nature, and are children, spouse etc. The will enables a person
different in case of Hindus, Muslims, Christian, to draft a clause in a way so as to take care of
etc. Admittedly, there is higher inconvenience minor or even married daughter, grandson etc.
14by providing funds with terms and conditions KEY TAKEAWAYS:
attached thereto. The will enables a person - A will is a legal document in which the person
to take care of the legal heir in the most declares as to who will manage their estate
appropriate way. after they die.
- Laws of inheritance and succession are
#6. Tax planning through will
complicated and diverse in nature.
Through proper drafting of a will, a person
- By making a will, one does not only distribute
can strongly plan and manage subsequent tax
wealth; they can also attach obligations and
impacts in the hands of the legal heir. The will
responsibilities.
can be a powerful tool for succession and tax
- An authentic will is never questioned by the
planning. Normally, an authentic/registered
taxmen. There is no impact of the clubbing
will is never questioned by the taxmen. There
provision if the assets are passed through a
is no impact of clubbing provision if the assets
will.
are passed through will.
- A probate is the copy of the will given to the
#7. Ensuring emotional and physical bonding executor with a certificate under the seal of
amongst family members the court and signed by one of the registrars
Disputes amongst the family members, in certifying that the will has been proved.
absence of a will, result not only in loss of - A codicil is a written statement which
time, money, energy but also result in strained supplements or modifies an already existing
relations amongst the legal heirs. Creating a will.
will can save a lot of headache and provide - An executor is a person who will carry on the
peace and harmony in the family. tenets of the will.
- A nominee is someone who takes care of an
Registration of will asset after the death of the actual owner,
Registration of a will is not at all compulsory. until it is transferred to the right legal heir.
However, if the will is registered, it is considered - It’s advisable to take help from trusted
more genuine. The will can be registered with professionals while writing a will.
the registrar/sub-registrar by paying a nominal
fee. It requires the person to visit the registrar's
office along with 2 trustworthy witnesses. POINTS TO BE KEPT IN MIND WHILE
‘Probate’ and its importance PREPARING A WILL
Non registration of a will often results in a There is no legal or defined format for making
questioning of its authenticity. In such a case, a a will. It’s not necessary to make the will on
document called “Probate of Will” is required stamp paper. One can make it even on plain
paper. Preferably, thick paper should be used
from the Court. Probate is the copy of the will
and should not be folded. It’s important to
given to the executor with a certificate under
keep it simple, precise and clear. It could be
the seal of the court and signed by one of
printed or handwritten. Normally, the printed
the registrars certifying that the will has been
version is preferred as it is more legible.
proved. Probate is a way to certify that the will
The will can be changed as many times as
is authentic. The application for probate has
required. It’s possible to change the will even
to be made along with a copy of the last will
if it is registered. Minor changes can be done
and testament of the deceased to a court of
by executing a codicil. A codicil is a written
competent jurisdiction. To avoid the probable
statement which supplements or modifies
requirements of a probate, it’s advisable that
an already existing will. It must be executed
the will be registered with the registrar.
in the same manner as that of the original
Considering the nominal cost, consequences will. If substantial changes are required, then
and time involved, it is advisable to make the it’s advisable to execute a fresh document
will and register it too. mentioning it as the last will.
15The person making the will must clearly Step 5 : Storing the will
mention the date of creation. The last will A will takes effect only after the death of the
supersede all earlier ones. It should be titled person. It’s advisable that a signed and sealed
as the “Last Will”. The will should appoint an copy of the will be kept in such a way that it
executor. Executor is a person who will carry can be accessed and implemented after the
on the tenets of the will. A trustworthy person death of the person. For this, the intimation
with prior permission should be named as of will and its place of storage may normally
an executor. Prior permission will safeguard be communicated to close relatives or friends
against subsequent refusal by the said person. who can ensure that the wealth of the person
is distributed according to the desire of the
5 STEPS TO MAKE A WILL
person making the will.
Step 1: Make a declaration in the beginning
The will should begin with a simple declaration Nomination cannot replace will
about the person making it, name, address, Most financial instruments like FDR, bank
age, etc. and with a confirmation that you are savings/current accounts, PPF, insurance
in your senses. policies etc. have the option of nomination
over it. Having a nominee over such financial
Step 2: Details of properties and documents
instruments will facilitate the transfer of the
The will should incorporate the details of all the
assets without the need for a succession
assets, properties, investments, etc. as owned
certificate. Question is raised as to whether
by you on the date of making the will. It may
will is required even if a nominee is mentioned
also incorporate the details as to where these
in the financial instruments? Strictly speaking,
documents, records, and assets are kept. If
a nominee is neither a legal heir nor owner of
any asset is held not fully but in sharing or co-
the asset but merely a caretaker. The person
ownership, this fact should also be mentioned.
takes the assets in their custody and then
For few assets like gold, silver, etc. the manner
transfers it to the legal heirs of the original
of their acquisition, at the time of marriage,
owner. A nominee is someone who takes care
inheritance, etc., can also be specified for
of the asset after the death of the actual owner
emotional and identification purposes.
until it is transferred to the right legal heir.
Step 3: Manner of distribution of the assets/
Although it is possible to draft a will on
properties
your own, it is always better to take the advice
The manner of the distribution of assets can be
of a trusted professional while writing a will.
incorporated in the will. If an asset is proposed
This will reduce the probable chance of error
to be given to a minor, then a trustworthy
and misinterpretation and the probability of
custodian till the minor attains an adult age
the will being claimed as invalid in the court
should be appointed. If there is any liability
of law. Considering the nominal cost involved
also, it may also be mentioned and the mode/
and the long enduring benefit, everyone must
obligation of its repayment can be discussed
prepare a will for the peace and harmony in
in the will.
their family.
Step 4 : Signing the will
Readers may forward their feedback and
After the will is prepared, all the pages must
queries at nareshjakhotia@gmail.com. Other
be serially numbered and signed, preferably
articles and response to queries are available
in presence of at least two independent
at www.theTAXtalk.com
witnesses. Advisably, witnesses should be
younger than the person making the will and
should not be the beneficiaries of the will. “If you don’t build your dream,
Witnesses undertake that you have signed the someone else will hire you to help them
will in their presence. The date and place must build theirs.”
also be indicated clearly at the bottom of the - Dhirubhai Ambani
will.
16SERVICES
FOR VIA
MEMBERS
CLOSE INTERACTION REGULAR AND TIMELY PLATFORM T O INTERACT
with VIA’s renowned Members, INFORMATION and gain professional knowledge
Central & State Government on latest national and international through seminars, workshops and
officers and academia. policies Govt. Legislations and round table meetings.
technical developments.
NETWORKING WITH QUICK MAIL SERVICE GENERATING AWARENESS
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Industries. members government notifications, regarding specific aspects of
circulars, reports, keep update business for overall development.
through VIA mobile App. etc.
ESCORT SERVICE ASSISTANCE TO TRADE AND DEVELOPMENTAL
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gradation national and international markets. Resources and Industrial Relations.
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FOR FURTHER DETAILS.
1
17 of its Members interest in various
fields with the Policy Makers. CALL: +91 7-2561211/2554090DECADE OF MAHARASHTRA
Lokmat Knowledge Forum and MIDC jointly At the same time, a high-tech park will be set
organised the “DECADE OF MAHARASHTRA” up to boost the new generation of industries
seminar to get perspective on the growth with facilities such as 3D printing and robotics.
opportunities for industries in Maharashtra. “Today, 25-30% of foreign direct investment in
The program was addressed by State Minister the country is in Maharashtra”, Desai remarked,
for Industries & Mining Subhash Desai, State expressing confidence in the industrial front of
Minister of Maharashtra Aditi Tatkare, and the state
Dr. P. Anbalagan - CEO of MIDC. Eminent
panelists were Suresh Rathi - President of VIA, Desai also said in order to keep the industries
Chandrakant Salunkhe - Founder & Chairman running smoothly, a single-window clearance
of SME Chamber of India and Maharashtra system titled Maha Parwana has been started
Industrial Development Association (MIEDA), under the MAITRI portal during the lockdown.
and Santosh Mandlecha - President of At the same time, MIDC will provide industrial
Maharashtra Chamber of Commerce, Industry sheds to investors.
and Agriculture. In his speech, Suresh Rathi - President
During his talk, Desai said that the industries of VIA, said that India is at the top when
are going through a difficult time during the it comes to getting foreign investments
pandemic and that 8 electronic clusters have and Maharashtra makes it very easy to do
been approved and will be set up in the near business. He also remarked how Vidarbha
future to boost the economy. In addition, can become a logistics hub and requested
a drug park will be set up in the state, in for the appointment of officers in all MIDCs in
collaboration with the central government. Vidarbha.
1819
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