SEBI’s rules governing related party transactions requires immediate amendment

SEBI’s rules governing related party transactions requires immediate amendment

Business Standard article titled 'India Inc sees red over new rules governing related party transactions': https://www.business-standard.com/article/markets/india-inc-sees-red-over-new-rules-governing-related-party-transactions-122021100437_1.html

3 months back, when the SEBI board approved the proposal, I had mentioned that RPT amendments are made extremely stringent and would require another round of amendment.

In fact, on the SEBI consultation paper on RPTs, I had written an article titled - Regulating ‘unrelated party transactions’ under the provisions of ‘related party transactions’.

Various industry and business associations are now taking efforts and seeking amendments to the SEBI regulations. Amendments would now take place in due course.

Interestingly, everything other than harmonization of company law provisions and SEBI regulations is being done. Not sure, if this is ease of doing business.

Tough days for listed entities, compliance officers and secretarial auditors.

My LinkedIn post for reference:

 Book Review – Let’s Talk Money by Monika Halan

By Gaurav Pingle, Practising Company Secretary.

 

To begin with, there are many books on investing, personal finance, insurances, mutual funds, etc. However, not all the books fascinate a common man to read it. The reason could be legal jargon, technical concepts, statistical information, graphs/charts, discussion on macro-economic factors, global factors, financial crises, etc. There are very few books in simple language on investing and personal finance that address important questions of common man. ‘Let’s Talk Money’ by Ms. Monika Halan is one such unique book.

The book covers various topics of investing and personal finance which ultimately empowers readers in taking important decisions relating to his investments. The book is written in very simple English language (which has been further translated into many vernacular languages in India). The simplicity of language makes the book as ‘finance for non-finance’. Even software engineer or electrical engineer or doctor or an architect (non-commerce professionals, as they are not taught personal finance as part of their academic course) will find this book interesting and relevant. The book is a practical guide and helps the reader to take informed decisions relating to personal finance.

The author has given many practical examples of her friends and relatives, which makes the book very relatable to the readers. The author doesn’t recommend the use of any spreadsheets or complex calculations, etc. In fact, the author empowers the readers in asking right question to right people about financial product. The book is a conversation about money. The book also empowers common man in taking unbiased financial decisions. At relevant places in the book, the author has also recommended to take help of financial planner.

217-pages book has 14 chapters. At the end of each chapter, author has summarised important action points or preliminary questions to be asked by the reader and important financial ratios discussed in few chapter (e.g. living cost vis-à-vis take-home income, EMI payouts vis-à-vis take-home income, savings vis-à-vis take-home income, etc.). The book is helpful for employed as well as self-employed professional and even for students.

The author has explained the concept of ‘money box’ in detail with practical tips for the readers. ‘Money Box’ helps us properly maintain the cash flow system, monitoring income and expenses, and investments on regular basis. ‘Emergency Fund’ – its importance, way to maintaining funds, amount, etc. has also been explained in a separate chapter in the book. There is a detailed discussion on medical cover, types policies, premiums, benefits, important questions to be asked to an insurance agent for getting the right policy. In a separate chapter, the author explains the need and importance of life cover. There is a detailed discussion on investment (+) life cover or only life cover. There is reference to coverage, amount of premium, time of buying the policy, taxation aspect, etc. In 6^th Chapter, the author now discusses ‘investing’. The author suggests the reader to note their short term, medium term and long-term investment goals based on which investments can be classified.

In the chapter titled as ‘let’s de-jargon investing’, the author has explained investment products in very simple language. The investment products include debt, gold, real estate, equity, index funds, etc. The author has given some important rules of equity investing, which includes: patience, risk, alternative option, lock-in, continuous education by reading good material on personal finance.

The chapter on Mutual Funds explains the concepts, legal structure, ‘safety’, kinds of funds, NAV, growth vs. dividend options, how does MFs make money, direct plan, systematic investment plan, etc. In the Chapter titled ‘putting it all together’, the author explains the parameters on which investment-oriented financial products must be evaluated, which includes: cost of investing, returns, lock-in, cost to exit early, holding period, taxes. The chapter concludes with a discussion on ‘asset allocation’ – a very important concept in investing.

There is a separate chapter on ‘retirement’. Taking into consideration the possibility of change in financial needs/requirements, and the plan, the author has suggested a review of goals on periodical basis. Without going much in legal jargon, the author has explained the importance of Wills and prescribed Do’s and Don’ts in preparation of Will.

In the last chapter, the author discusses and explains the factors that ‘kills the money box’ – the concept (‘money box’) that was discussed in the first chapter. Some of the factors are spending too much, high cost of borrowing on credit cards, investing in multi-level marketing schemes, investments in high-risk IPOs, bitcoins, etc.

After reading the book, the reader will be able to organise his/her finances in a rational manner. The book will help the reader to build a system and is not a ‘single shot’ solution for personal finance. It is also not a get-rich-quick book but a book that will develop good habits and discipline which will ultimately make us more confident about our investments. The book has been revised and updated with financial lessons from Covid-19.

In my view, everyone should read the book – Let’s Talk Money. The book should also be basic reading material for all graduation courses in India. This would significantly improve the financial literacy, which is also the objective of the author. It is a book that empowers readers in taking important financial decisions in unbiased manner.

Amazon Link: https://www.amazon.in/Lets-Talk-Money-Youve-Worked/dp/9352779398

Book Review - CSR, ESG & Charitable Institutions - authored by Dr. KS Ravichandran

 

CSR, ESG & Charitable Institutions authored by Dr. KS Ravichandran

Book review by Gaurav Pingle, Practising Company Secretary

Along with Related Party Transactions & Independent Directors, Corporate Social Responsibility (CSR) has been one of the most deliberated concepts of the Companies Act, 2013. Interestingly, CSR (section 135 of the Companies Act, 2013 and CSR Rules) is also one of the most amended provisions. The book (published by Lexis Nexis) titled – CSR, ESG & Charitable Institutions, authored by Dr. KS Ravichandran helps the readers in understanding the concepts of CSR, Environmental, Social and Governance (ESG) reporting practices and Charitable Institutions.

This book provides 360-degree perspective of CSR. The author has explained the concepts in very simple language, which would be very helpful for corporate law professionals and students pursuing CS/CA/CMA course or students of law school and management institutions. The discussion is not only about company law but also, about foreign exchange laws, foreign contribution regulation law, income tax law and accounting practices.

Philosophy of CSR: Initially, the author has discussed in detail nine principles that constitute the social responsibility of the company (as provided in National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business). At necessary places, the author has given reference to the practical application of the said principles. He has also given practical and latest examples of unethical and undesirable corporate practices (e.g. Volkswagen, Mitsubishi, Ranbaxy, Johnson & Johnson, etc.). The author has also given references and details of the CSR initiatives at Paris, CSR principles in Indonesia, OECD principles on CSR, etc. By reading the first chapter, the reader gets a global outlook, ‘principle-based’ approach and not just as compliance-oriented perspective.

ESG reporting practices: After discussing the concept of ESG, the author has presented a thorough study of ESG activities of top 50 listed companies. This study will be helpful in understating the effectiveness of ESG in India. The author has concluded this important chapter by stating that “it is essential to note that the concept of business responsibility and sustainability reporting, introduced by SEBI under the provisions of LODR Regulations has brought much needed changes to bring a lot of thrust on the significance of Socio-Enviro Governance” 

CSR & CSR expenditure: There is a detailed discussion on the provisions of section 135 of the Companies Act and the CSR Rules made there under. There is detailed analysis of the said provisions, accounting aspects, accounting of CSR assets, grants received, disclosure in financial statements, audit and action for fraud, falsification of books of accounts. This discussion will help compliance officers, finance heads and accountants to understand and apply the said provisions.

CSR Vehicles: There are 3 separate chapters on CSR vehicles, which covers section 8 companies, trusts and societies. There is detailed discussion on grant of license to section 8 companies, grounds of revocation, corporate restructuring in such entities, etc. There is also detailed discussion on establishment of societies, registration requirements, procedural & administrative aspect of societies, de facto doctrine & legal status of societies as not body corporate. On the trust as CSR vehicle, after explaining the concepts of public trusts and private trust, the author has discussed in detail provisions relating to duties, authorities, general powers & rights of trustees, etc. There is detailed discussion on other important concepts of trust law, which becomes relevant when promoters of company / social entrepreneurs decide to set up a trust for CSR activities.

Income Tax aspect of CSR: In a separate chapter, the author has also discussed the procedure and critical aspects of registration of trusts under the Income Tax Act, 1961 and exemptions from income tax. There is also a detailed discussion on section 12A of the Income Tax Act along with registration procedure, factors considered by prescribed authority, conditions for being entitled to exemption under section 11 and 12 of Income Tax Act. In a separate chapter, the author explains the benefits of contributions to funds, trusts and Institutions registered under section 80G of Income Tax Act. There is clause by clause analysis of Section 80G of Income Tax Act. The author has also analyzed in the detail the taxation aspects of CSR expenditure (under section 30 to 36 of Income Tax Act).

Foreign contributions as CSR: There is a separate chapter and detailed discussion on CSR vis-a-vis Foreign Contribution Regulation Act, 2010. There section-wise commentary on the said Act. This will be helpful for the readers who are connected with companies accepting foreign donations. There are references to notifications issued by the Ministry of Home Affairs.

CSR spend pattern analysis: The author has also presented a study of CSR spend pattern analysis. Top 50 listed companies are considered by the author for this study. The statistical analysis relates to applicability of CSR provisions by average threshold, analysis of CSR required to be spent, actually spent and unspent CSR in 3 financial years, amount spent on various categories of CSR activities during last 3 FYs, amount spent on most preferred and least preferred categories of CSR activities, CSR amount spent on funds specified in Schedule VII in 3 FYs. The author has also presented detailed statistics and analysis on amount spent directly and amount spent on CSR activities through implementation agencies in 3 FYs. After every statistical information and presentation, author has provided his analysis and views on the same. There is detailed discussion on the findings of such research and statistical information. This will be helpful for the Government agencies/ departments in further refining, amending and implementing CSR provisions effectively.

In the book, the author has also discussed 100 FAQs on CSR provisions. The answers are not simply – yes or no. But there is a short discussion on the relevant question and references to the provisions of the Companies Act, CSR Rules, MCA Circulars, etc. The FAQs covers discussion on the critical questions w.r.t. CSR applicability, spending, reporting, calculation of net profits, nature of expenditure included and excluded in CSR spending, coverage of policy, CSR activities vis-à-vis CSR policy, approval process, role of board of directors / CSR committee, corporate restructuring and applicability of CSR provisions, etc. All these questions are relevant and the replies / answers to the same are researched-based and practical. Some of the important questions relates to: frequency of meetings of CSR committee, whether systems required for monitoring CSR expenditure, consequences of the failure to undertake CSR activities, including at least one KMP as member of CSR committee, whether creating awareness constitutes CSR activity, display of CSR activities on website, mandatory requirement of 3 years track record, reference to various MCA Circulars in relation to MCA notification dated January 22, 2021, etc.

 

For the benefit of readers, the author has given a model memorandum of association and articles of association of a section 8 company for undertaking CSR activities and project report. There is also a model trust deed for undertaking CSR activities.

 

The overall deliberations in the book would be useful to professionals, directors, officers, trustees, office bearers of NGOs, social entrepreneurs, academicians, Government officers, law makers, students, etc. Every reader will get a different and unique experience on CSR. In my view, every corporate law professional and student must have this book for having a global and broader perspective of CSR, ESG & Charitable Institutions.

Book Review - Company Law for Private Companies [Marathi Edition]

Book Review

Company Law for Private Companies [Marathi Edition]

Shri. Mahesh Janardhan Risbud, Practising Company Secretary, Pune has authored a book on Company Law in Marathi Language. The book covers compliances and procedures for Private Companies and also covers a separate chapter on Limited Liability Partnerships (‘LLP’).

Considering the convenience of decision making, Private Companies – as a form of business organisation is preferred by many businessmen and entrepreneurs. In a private company, the minimum number of directors and shareholders are two. Generally, the decisions are taken mutually by the two directors & shareholders. In private companies, it is very convenient and cost-effective process to call and conduct a meeting of directors and shareholders and take the necessary decisions. Also, private companies are exempted from compliances of strict regulations under the Companies Act.

Under the Companies Act, 1956, there were specific exemptions given to private companies w.r.t. calling of meetings, directors / directors relative funding the private companies, drafting the Articles of Association of the company, disclosures to the shareholders and Government, etc.

Under the Companies Act, 2013, there were very few exemptions given to private companies. With an objective of ‘ease of doing business’ and promote entrepreneurship, the Government has issued several notifications and introduced certain exemptions for private companies.

The book ‘Company Law for Private Companies’ authored by Shri. Mahesh Janardhan Risbud is a compilation of the relevant provisions for private companies in Marathi language. The author has explained the provisions of the Companies Act and LLP Act is simple and lucid language. Initially, the author has explained the concept of ‘company’, its features and advantages. This part of the book will help the businessmen and entrepreneurs to decide whether to incorporate a partnership firm or company. The author has also explained different types and classes of companies, e.g. One Person company, private companies, companies with charitable objects, small companies, start-ups, etc.

Considering that the reader has decided to incorporate a company, the author then provides a detailed process for its incorporation. In simple language, he explains the process of selecting the name of the company, online application and its approval. Then he explains the Memorandum of Association and Articles of Association, which are the constitution documents of the company. Recently, the Govt. has re-introduced a concept of ‘commencement of business’, wherein the promoters are required to report to the Govt. about their infusion of share capital in the company after its incorporation. The author has rightly captured the latest amendment which would ensure timely compliance of the new regulation by business and entrepreneurs.

The directors are responsible for day-to-day functioning of the company. The author has lucidly explained the various provisions relating to appointment of directors, their tenure, duties and responsibilities. The author has also explained in simple language about the procedure of conducting and convening board meetings. 

On the share capital of the company, the author explains the different types of share capital, i.e. authorised share capital, issued share capital, subscribed share capital, paid-up share capital etc., along with different types of shares i.e. equity shares, preference shares, equity shares with differential voting rights, etc. With an objective of having a basic understanding of raising of finance by companies, the author has explained the different ways of raising it, i.e. Rights Issue, Private Placement, Preferential Issue, ESOPs. In a different chapter, the author has explained the various provisions relating to acceptance of loans and deposits by a company. The author has pointed out important aspects from the perspective of compliance under the Companies Act, 2013 and the Rules made thereunder. In a separate Chapter, the author has discussed some important aspects about the appointment of Statutory Auditor and Company Secretary and their role in functioning of company.

Running a business comes with its own challenges. Sometimes when things do not work out, necessary steps shall be taken for closure of company. In this part of the book, the author has adequately covered the provisions relating to winding-up of company, dormant companies, striking off of companies, liquidation of company. 

For the convenience of the readers, the author has presented the special provisions applicable to private companies, list of Registrar of Companies along with their updated addresses, list of applicable e-Forms, etc. in tabular format. This part of the book will be helpful for corporate law professionals from the perspective of routine compliance and audit.

The Author has also covered another important topic – Limited Liability Partnership. In this topic, the author has explained the process of incorporation, points to be considered in the LLP agreement, working and operations of LLP, roles and responsibilities of the partners and designated partners of the LLP. From the perspective of restructuring, the author has also covered important topics relating to conversion of company into LLP, conversion of partnership firm into LLP, closure of LLP, etc. This topic will help the readers in comparing the advantages and disadvantages of incorporating a company vis-à-vis LLP.

The book will be quite helpful for businessmen, entrepreneurs, non-commerce students, corporate law professionals and non-corporate law professionals for understanding the basic provisions of the companies and LLP. The book will be good addition to the Marathi curriculum and libraries of school/college/university. The book is presented in a very lucid and comprehensible manner to provide the readers an insight of the Companies Act as applicable to small private companies and LLP Act.

The book can be purchased from:

Vyapari Mitra

Parshuram Kuti 106/9, Erandwana, 

Near Old Shamrao Kalmadi High School,

Pune – 411004, Maharashtra, IN.

+91 94218 80290

https://www.vyaparimitra.com/ 

sampadak@vyaparimitra.com 

Book review prepared by Gaurav Pingle, Company Secretary, Pune.

Whether examination for aspiring Independent Directors serves any logical purpose?

Background: Government plans to have examinations for individuals who want to become independent directors (‘IDs’) as part of bolstering the corporate governance framework, according to Union Minister P P Chaudhary. While there are stringent provisions under the Companies Act, 2013 to ensure good governance standards, the roles of IDs has come under the scanner in certain instances of corporate misdoings. Also, at a time when the Government is making efforts to make its role minimal in the affairs of corporates, the role of IDs is more vital. Asserting that the Government is committed to improve the fabric of corporate governance in the country, Chaudhary said strengthening the role of IDs in the affairs of companies is one of the steps in that direction. “The requirement with respect to IDs to have minimum reasonable qualifications and a certification course/ exam are also being considered,” Chaudhary told in an interview. [Key excerpts from ET News story].

Provisions under Companies Act, 2013 & SEBI Listing Regulations: Presently, there is no provision in the Companies Act and SEBI Listing Regulations of an examination for individuals who want to become independent directors.

Databank of independent directors: Section 150 of the Companies Act relates to ‘Manner of selection of IDs and maintenance of databank of IDs’ [effective from April 1, 2014 but not practically implemented]. Pursuant to the provisions, ID may be selected from a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as IDs, maintained by any body, institute or association, as may be notified by the Central Government, having expertise in creation and maintenance of such data bank and put on their website for the use by the company making the appointment of such directors. The responsibility of exercising due diligence before selecting a person from the data bank referred to above, as an ID shall lie with the company making such appointment.

Recommendation of the Kotak Committee on Corporate Governance: The Kotak Committee noted that the Companies Act provides general clauses pertaining to training, induction, etc. of directors and SEBI Listing Regulations requires familiarization of IDs relating to certain specified matters. However, specific provisions on induction training and periodicity of continuous updation are lacking. Based on this background, Kotak Committee recommended: (i) A formal induction should be mandatory for every new ID appointed to the board; and (ii) Formal training, whether external/internal, especially with respect to governance aspects, should be required for every ID once every 5 years, the onus of which shall be on the director. However, such recommendation was not accepted by the SEBI.

Moot question is whether examination for aspiring Independent Directors serves any logical purpose? Considering the examination for aspiring Independent Directors, in my view, the entire thrust is on ‘examination’ and not ‘training’. The outcome of this would be ‘well-qualified IDs’ but not ‘well-trained IDs’ or ‘capable IDs’. The examination would be in MCQ format covering general syllabus relating to law, finance, accounts and management (just guessing, based on on-going trend). However, in practice, an ID has to confront the challenges w.r.t. disclosures, compliances, fiduciary duties, approval process w.r.t related party transactions, appointment of auditors, approval of financial statements, etc.

Considering the dynamic changes in law (Companies Act, Securities Law, IBC, Foreign Exchange Laws, GST, etc.) one-time examination would not serve the real purpose in the long run. The IDs need ‘training’ and not ‘examinations’. The trainings should be from the perspective of the industry specific laws, company’s practice, company’s implementation process, regulatory updates, recent case laws (India and abroad), global practices, peer-practices etc. All these practical and relevant aspects will not be part of the examination which is proposed by the Government.

The Government, in my view, shall re-consider this proposal. The Kotak Committee on Corporate Governance has made some important and relevant recommendations which should be considered by SEBI and MCA.

Whether Related Party Transactions really need a relook?

By Gaurav Pingle, Company Secretary, Pune

(E-mail id: gp@csgauravpingle.com)

Background: Recently, an article was published in Economic Times on the topic of Related Party Transactions (titled, Related Party deals in Companies Act need a relook). The article was in relation to the Annual General Meeting of Tata Sponge Iron Limited wherein the company had proposed 3 resolutions relating to related party transactions for shareholders approval. The company faced defeat on all the 3 resolutions. Out of the 45.5% non-promoter shareholders, only 12.43% participated in the voting; of which 66.76% opposed the resolution. The company faced defeat on all 3 resolutions for approval of RPTs with just 3.77% of the total shareholders opposing it. It can be said that the shareholders holding 3.77% virtually bulldozed the wishes of 96.23%.

Provisions under Companies Act, 2013 & SEBI Listing Regulations: Under the extant provisions of the Companies Act, 2013, a related party is prohibited from voting on the resolution as a shareholder where the related party is party to the contract. Whereas, under SEBI Listing Regulations all the related parties are prohibited from voting, irrespective whether the shareholder is a related party or not.

Presently, under the Companies Act, 2013 (section 184), every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into shall disclose the nature of his concern or interest at the meeting of the Board in which the contract or arrangement is discussed. Such director shall not participate in the meeting of the board of directors.

Under the Companies Act, 2013 (section 184), where any director who is not so concerned or interested at the time of entering into such contract or arrangement, he shall, if he becomes concerned or interested after the contract or arrangement is entered into, disclose his concern or interest forthwith when he becomes concerned or interested or at the first meeting of the Board held after he becomes so concerned or interested.

Analysis: After notification of the Companies Act, 2013 and introduction of the SEBI Listing Regulations, related party transactions have been at the center stage of corporate governance arena. The crux of the entire issue is – Whether prohibition on voting by related parties is constitutionally valid? In my view, such prohibition amounts to depriving a person of his right to vote and it is a well settled principle of the company law that depriving a voting right is depriving the property, since vote is property. The shareholders vote is a right of property, and prima facie may be exercised by a shareholder as he thinks fit in his own interest. A member can exercise this right even in a manner adverse to what others may think the interest of the company, provided his vote is bona fide and contrary to public policy. It is settled in company law that right to vote attached to a share is property. In my view, neither Companies Act, 2013 nor SEBI Listing Regulations shall take away such right of a shareholder (whether as a promoter or non-promoter, whether related party or not).

I am of the opinion that the Companies Act, 2013 and SEBI Listing Regulations shall enhance the disclosure requirements for such related party transactions. Such disclosures can be part of Explanatory Statement to the Notice of the general meeting. The law may also direct the companies to give a public notice / advertisement of such related party transactions. The law may also direct the board of directors to provide a declaration that such related party transaction is in the interest of the company with requisite reasoning. The declaration may also contain a provision that all the necessary disclosures by the directors have been made to the shareholders. In my view, not all RPTs are against the interest of the company. Some RPTs may be a requirement of the company to focus on its core business activity. Better disclosures and transparency by the board of directors will also eliminate the possibility (which is now a reality as well!) of majority shareholders being at the mercy of minority shareholders.

In my book on Related Party Transactions, in one of the Chapters, I have compared the RPTs provisions under the Companies Act, 2013 and SEBI’s Listing Regulations. There are 26 comparative points on the provisions relating to RPTs. The other RPT provisions includes scope of related party, type of specified transaction, ‘pricing parameter’, reference of ‘ordinary course of its business’, Audit Committee’s approval, recommendation to the board of directors where RPT is not approved by Audit Committee, ratification of RPTs by Audit Committee, material RPTs, trigger point for shareholders’ approval, provisions relating to royalty payment, annual disclosures, etc. The regulators shall harmonize the said provisions which will ultimately address the real issues in RPTs.

Book on RPTs can be purchased from: Flipkart & Amazon .

Milkha Singh, The Race of My Life

Milkha Singh, popularly known the Flying Sikh, is an inspirational story of India’s most iconic male athlete. Bhaag Milkha Bhaag is a biographical film that depicted his early life and career. The book ‘The Race of My Life’ is an autobiography of the Flying Sikh. I feel that the book is more inspirational than the movie. This write-up / blog is a review of the book ‘The Race of My Life’. It captures the real life of Milkha Singh, his challenging experiences and inspiring moments. Wherever necessary I have given the excerpts of his life-time experience, which no one can explain better than him. It is a 150 page book divided into 20 Chapters. He has explained the pre-independence era, partition time which had a very significant impact in his life, his life before and his life after army, his experiences as an athlete and most importantly his PASSION for running! The book is beyond a ‘self-help book’. It is a must read for any person who wants to achieve any goal in life. The book will definitely establish self-belief in a person.

The Foreword for the book is written by Shri Rakeysh Omprakash Mehra (Director, Bhaag Milkha Bhaag) and Introduction to the book is written by Milkha Singh’s son – Jeev.

In the half-page Prologue, Milkha Singh stated that “When I reflect upon my life I clear see how my passion for running has dominated my life. The images that flash through my mind are those of me running … running …. Running…

·                    Sprinting from one shady patch to another to escape the blistering heat of the sun on my journey to school,

·                    Feeling the massacre on that fearsome night when most of my family was slaughtered

·                    Racing trains for fun,

·                    Outrunning the police when I was caught stealing in Shahdara,

·                    Leaving everyone behind in my first race as an army jawan so that I could get an extra glass ofmilk,

·                    Surging past my competitors in Tokyo when I was declared Asia’s Best Athlete,

·                    Running in Pakistan and being held as ‘The Flying Sikh’,

Each of these moments brings back bittersweet memories as they represent the different stages of my life, a life that has been kept afloat by my intense determination to triumph in my chosen vocation.”

The Prologue really moved me and made me more serious about reading the book at one go. J

Faith on his Coach

(Morale boosting attitude and clever strategies that Dr. Howard gave me, equipped me with the confidence that I badly needed)

In almost all chapters on his running, Milkha Singh has touched upon the contribution of his coaches in his career. He has explained the way his coaches mentally prepared him for every match. The American Coach, Dr Howard had accompanied the Indian Team[1]. About Dr. Howard, Milkha Singh has stated that “He was an outstanding trainer, who was very well acquainted with international training patterns and techniques. He was also very astute and could easily judge the strengths and weaknesses of the other athletes. For an entire day he mentored me, giving me pointers on what to expect. More than anything he was trying rid me of my inferiority complex and instill self belief. I had convinced myself that there was no way that I could be among the six finalists, let alone win a gold medal. What chance did I have against superbly fit professionals Malcolm Spence from South Africa, George Kerr from Jamaica, Keven Gosper from Australia, Terry Tobacco from Canada and John Salisbury from England.

However, because of Dr. Howard’s motivation and advice, I won heat after heat and effortlessly reached the finals. The night before the race, Dr. Howard reiterated the tips he had drilled into me. He revealed that Spence had more stamina than speed, and that I should stick to me own style of running the 400 mts. race, i.e. to start in top gear. He emphasized that I must not start slowly, that I must maintain my speed for first 300 meters, and then give it my all in the last 100 mts. He said that if I ran first 300 mts. at full speed, Spence would do the same, although that was not his running strategy.

The morale boosting attitude and clever strategies Howard gave me, equipped me with the confidence that I badly needed. I started believing that I could be the best. Another constant motivation was a burning desire to do well for the country – I was well aware that my good performance would lead to the glory of India.”

Life-time title ‘The Flying Sikh’

(Athlete running before you is Milkha Singh. He does not run, he flies! His victory will be recorded in Pakistan’s history)

Soon after the National Games at New Delhi, India received an invitation from Pakistan Government for the Indo-Pak Sports Meet. About this visit, Milkha Singh stated that “What an ironic twist of fate. I was returning to the land where I was born, where I had lost my home and most of my family in the inhuman savagery that followed Partition”. Milkha Singh didn’t want to go, but Pandit Nehru intervened, saying that this visit was for the honour of country and that Milkha Singh was going there as an ambassador of India.

Just before the race at Pakistan, Milkha Singh has described the entire event, as “There was pin drop silence as we stood at the starting line waiting for the race to begin. The silence was oppressive. The starter, dressed in white shirt and trousers, a red overall, white peaked cap and black shoes, stood on a table behind us. He shouted, ‘On you marks’, fired the gun and the race begun. The audience suddenly awoke and began to chant: ‘Pakistan Zindabad: Abdul Khaliq Zindabad.’ Khaliq was ahead of me but I caught up before we had completed the first 100 mts. We were shoulder to shoulder then surprisingly, Khaliq seems to slacken and I surged ahead as if on wings. I finished the 200 mts. about 10 yards ahead of Khaliq, clocking 20.7 seconds that equaled the world record. My coach, Ranbir Singh, the manager and all my team members leapt to their feet in jubilation. I was embraced, thumped on the back and then lifted on to their shoulder as they expressed their happiness both vocally and physically …. After the race, I ran a victory lap of the stadium, while loud speakers announced: ‘The athlete running before you is Milkha Singh. He does not run, he flies! His victory will be recorded in Pakistan’s history and we confer the title of ‘Flying Sikh’ on him’. It was General Ayub Khan who coined the titled ‘Flying Sikh’, when he had congratulated me, saying ‘Tum daude nahi, Udhey ho’ – You do not run, but fly! As I passed in front of the woman section the ladies lifted their burqas from their faces so that they could have a closer look at me – an incident that was widely reported in the Pakistani press. And so, with this victory I became the Flying Sikh. A title that soon became synonymous with my name all over the word.”

Once an Athlete, Always an Athlete:

(Coach has the power and influence to build a sportsperson’s stamina, prowess and self-confidence)

In this Chapter, Milkha Singh has touched upon the sports industry and selection criteria at a national and international level. He has raised and addressed few critical issues in the selection process. He has mentioned about the international level of coaching, sports infrastructure and scientific training methods. He has given a reference of the productivity of National Institute of Sports. Importantly, he has discussed about the accountability in sports industry. This Chapter will be very relevant and interesting for the coaches, sports management students and sportsman.

Milkha Singh has stated that “How very different this systematic approach is from the lackadaisical manner in which we try to develop our sports people. Selection in India are adhoc, often dictated by political diktats, or through personal contacts and connections. What India needs today is a firm goal to aspire towards, and what could be more prestigious than aiming for an Olympic gold? Success in the Olympic should be our ambition but to achieve that end, we international level coaching, and for that, I would strongly recommend emulating the Chinese, right from creating a world class sports  infrastructure to spotting and grooming kids with talent. We need to overhaul our selection process and training methodology and chose on the most talented young boys and girls who show promise and have the potential to produce results. Give them professional guidance, give scientific training methods, discipline them if their standards fall, and above all, inspire and motivate them. What needs to be instill in them right from beginning is: toil hard to increase efficiency, stamina and strength, be resolute in thought, word and deed, and most important of all take pride in your performance.

But no sportsman can achieve results without an equally dedicated and committed coach. Thousands of coaches graduate from the National Institute of Sports (NIS) every year, but what has been their contribution to the development of our sports people? Unlike China, they are not held accountable if their trainees do not produce the expected results. The sad truth is that no can question them, neither the government who employs them nor the association who sponsor them, not even their students whose careers depends upon them. As a result, they have grown complacent in their jobs.”

He has compared the present sports industry scenario and coaches with his own time. He has once again appreciated the contribution of his coaches from his journey from Milkha Singh to Flying Sikh. In the book, he has stated that “The lethargy or apathetic coach can only impede the growth and progress of an athlete. If there were no Gurudev Singh, Ranbir Singh or Doctor Howart when I first started running, would I have ever achieved the success I did? No. And I will reiterate what I have always said that it is only the coach who has the power and influence to build a sportsperson’s stamina, prowess and self-confidence.”

The politics of sports

(No other sport gets the kind of exaggerated coverage that the cricket does)

In this Chapter, Milkha Singh has candidly discussed about the reasons why sports standards are declining in last few decades. He has very rightly criticized cricket. In this Chapter, he has mentioned that in India, if a sportsperson (other than cricketer) wins or breaks a record then the attention will focus on them only for a short while. He has stated that Media can change this scenario and encourage other sports in every possible way.

Milkha Singh stated that “Another reason why sports standards are declining is that over the last few decades, cricket has over shadowed every other sport in India. Open any newspaper, put on the television, and what first grabs the persons attention are the screaming headlines and images of star cricketers in action. No other sport gets the kind of exaggerated coverage that the cricket does. Besides, there is a constant cycle of cricket – test matches, one dayers, IPL and what not – taking place throughout the year, so many events that there seems to be very little respite between one match and the next. Compelling images, swashbuckling exploits, glamorous lifestyles, and most important, the money are the lures that attract young children towards the game.

Just a handful youngsters are interested in any other sports. Even if a sportsperson wins or breaks a record in any other game, be it athletics¸ hockey, boxing, wrestling, shooting, tennis or badminton, attention will focus on them only for a short while. For example, our medalist at the 2012 London Olympics, including Saina Nehwal, Sushil Kumar, M.C. Mary Kom, were greatly feted for their success when they returned. But then the attention was back to cricket once again. I think the media should help encourage other sports in every possible way.”

As mentioned earlier, this book is a must read. The book will surely instill self belief. J

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[1] Reference: British Empire and Commonwealth Games, 1954. Chapter 10 – ‘Come on Singh’, Page 70