Q1. Sir, please tell us about your journey to becoming a Chartered Accountant and the founder of Deepak Lala & Company? What motivated you to specialize in Accounting, Audit, Taxation, and legal matters?
During my early childhood, when I was around 10-12 years old, my mother taught me banking activities. It involved filling up pay-in slips, depositing money in the bank, filling up application forms for placing fixed deposits, preparing a list of all the fixed deposits, calculating interest on them, etc. Then she used to teach me how to read share market prices, gold and silver prices in newspapers. My father gave exposure to legal matters. Both were surprisingly not qualified!! My mother didn’t have any formal school education and she had learnt to read and write from her brothers during her childhood. My father had completed his matriculation but had not studied formal law. But due to our family legal matters, he had developed strong legal acumen. I used to accompany him to the City Civil Court and High Court during my school’s summer vacations and see the lawyers arguing cases before the judge in the courtroom. After completing my 10th Standard (SSC) Board exams, I opted for Commerce Stream in College. During the vacations after giving my 12th exams, I got an opportunity to assist in Bank Audit and filing of income tax returns through a CA firm known to my father. That became a stepping stone to my taking the decision to pursue Chartered Accountancy.
Q2. You passed your CA Final exams before the age of 21, which is an incredible achievement. How did you manage to accomplish this at such a young age, and how did it shape your career?
After completing my 12th Standard (HSC) in commerce stream, I enrolled for the newly introduced Chartered Accountancy (CA) Foundation Course. I was 16.5 years old at that time. With divine blessings, I completed it in my first attempt in June 1993. Results were declared and very soon on 17th August 1993, I enrolled for CA internship (articles) with the same CA firm where I had my early exposure. However, since I was yet to complete the age of 18 years on that day, my formal agreement for CA internship was executed on 20th September, 1993 when I turned 18 years. Thereafter, I thoroughly enjoyed my training and studies during the three years of CA internship. Though during the same period, I very much missed my college life also as I completed my Bachelors in Commerce in April 1995. I passed my CA Final Exams held in May 1996, the results of which came in July 1996 and I still had my 2 months of internship to be completed. I completed my internship on 19th September, 1996 and on the midnight of 20th September, 1996 when I turned 21 years, I had officially become CA. It was the best birthday gift I had received and I offered the entire credit of it to my parents.
Q3. As the Convenor of the Continuing Professional Education Study Circle at the Institute of Chartered Accountants of India, how do you contribute to the development of professionals in your field?
After completing my CA, I got associated with a small group of CA and we were interested in forming a local CA study group in Mulund (suburb of Mumbai) for keeping ourselves updated on various topics of professional interest. We were around 10-12 of us and our inaugural first study circle meeting happened in October, 1996 with me delivering a presentation on Accounting Standards before my 15 CA friends. Gradually, it gained momentum. I was part of the core-team from inception and assumed various roles till I became Deputy Convener of this Study Circle in the year 2003-2004. Till this time, our study circle was known as Mulund CA Study Circle. During December, 2003 under my Dy convenorship, we got the opportunity to reconstitute our Study Circle as Continuing Professional Education (CPE) within the next 6 months as per the CA Institute’s (ICAI) guidelines. We ran a Membership Drive and enrolled more than 100 members in the next 4-5 months. Next year in 2004-2005, I became the Convener of the Mulund CA CPE study circle of WIRC of India. We did seminars every alternate month and our membership strength reached more than 300 members by the end of June 2005. It is heartening to see that, today our CPE study circle has grown to more than 600 members.
Q4. Your expertise lies in supporting Micro, Small, and Medium Enterprises (MSMEs). What inspired you to focus on this sector, and how do you believe your services benefit these businesses?
Right from the beginning of my CA practice, I dealt with accounting, auditing, taxation, legal and financial aspects of my clients. Most of them were from MSMEs. I got associated with many of these enterprises right from their day of formation. Being closely associated with these enterprises from the very beginning of their venture, I could also understand their other business problems. I started providing them my advisory and consultancy with respect to their business and management aspects as well. This provided them with better support and helped them in overcoming many of their problems. This became very satisfying for me as well as the client.
Q5. You received an award for outstanding contribution as a Chartered Accountant for MSMEs from WASME. Could you share some key insights or initiatives that earned you this recognition?
It was very encouraging and motivating when my efforts got appreciated and recognized by a global forum like World Association of Small and Medium Enterprises (WASME) on 27th June, 2023, on the day, which is celebrated globally as World MSME day. I felt overwhelmed and humbled. The award was a combined felicitation of all my knowledge, efforts and experience of more than 25 years in this field.
Q6. You are currently writing a book on MSMEs. What motivated you to author this book, and what aspects of MSMEs do you intend to cover in it?
During my interaction with many budding entrepreneurs and existing business owners of MSMEs, I realized that a lot of information needs to be compiled and summarized in a handy book form. It should be easy to understand and not very technical. It should encourage the new business owners to step out and venture into the interesting world of MSME. At the same time, it should provide the existing MSMEs to scale up their operation by providing them with all the needed information. This book will cover various rules and regulations, credit facilities, working capital loans, finance options, accessing the capital market through SME IPO, listing of shares in SME segment of BSE and NSE, legal protection available and many other legal provisions and information pertaining to MSMEs.
Q7. Corporate governance is a topic you are passionate about. How do you define corporate governance, and why is it essential for companies to promote integrity and good governance practices?
Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves the relationships among various stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. The primary goal of corporate governance is to ensure that a company operates in a transparent, ethical, and accountable manner while creating long-term value for its stakeholders.
Integrity and good governance practices are essential for companies for several reasons:
1. Stakeholder Trust: Transparent and ethical behavior fosters trust among stakeholders, including shareholders, investors, customers, employees, and the general public. Trust is the foundation of healthy relationships and sustainable business growth.
2. Risk Management: Effective corporate governance helps identify and mitigate risks that a company might face. By establishing robust internal controls, companies can minimize the potential for fraud, mismanagement, and other unethical activities.
3. Long-Term Sustainability: Companies that prioritize good governance tend to make decisions that are aligned with their long-term objectives rather than short-term gains. This approach contributes to the company’s sustainability and resilience in a rapidly changing business environment.
4. Access to Capital: Investors, especially institutional investors, are more likely to invest in companies that adhere to strong governance principles. Good governance practices enhance a company’s reputation and attractiveness, making it easier to raise capital when needed.
5. Accountability: Clear governance structures ensure that responsibilities and decision-making processes are well-defined. This enhances accountability among management and the board of directors for their actions and decisions.
6. Ethical Culture: A culture of integrity and ethics is cultivated through good governance practices. When leadership demonstrates ethical behavior, it sets an example for employees throughout the organization.
7. Legal and Regulatory Compliance: Companies that follow good governance practices are more likely to stay in compliance with laws and regulations. This reduces the risk of legal and regulatory penalties.
8. Conflict Resolution: Well-defined governance mechanisms provide a framework for resolving conflicts of interest among different stakeholders, preventing such conflicts from escalating and harming the company’s reputation.
9. Reputation and Brand Value: Companies that prioritize integrity and good governance are more likely to build a positive reputation and strong brand value. A strong reputation can lead to customer loyalty, attracting top talent, and maintaining positive relationships with partners.
In conclusion, corporate governance is essential for companies to promote integrity and good governance practices because it establishes a framework that guides ethical behavior, ensures accountability, reduces risks, and ultimately contributes to the company’s long-term success and value creation for all stakeholders.
Q8. You have expressed an interest in serving as an Independent Director on corporate boards. What values and expertise do you believe you bring to such roles, and how do you plan to contribute to companies’ governance and decision-making?
The potential values and expertise that I can offer in such a role would be as follows:
1. Objective Analysis: I can provide unbiased and data-driven analysis of complex business situations, financial reports, and industry trends. This objectivity can assist the board in making well-informed decisions that are not influenced by personal biases.
2. Risk Management: By processing and analyzing vast amounts of data, I can help identify potential risks and opportunities that might not be immediately apparent. This can aid the board in developing strategies to mitigate risks and capitalize on emerging trends.
3. Strategic Planning: I can assist in scenario planning, strategic forecasting, and evaluating the potential impact of different decisions. This expertise can contribute to the development of robust and forward-thinking strategic plans.
4. Governance Best Practices: I can provide insights into contemporary governance best practices, helping boards stay up-to-date with industry standards and regulations.
5. Ethical Considerations: I can assist in ethical decision-making by offering various perspectives and highlighting potential ethical implications of different choices.
6. Diverse Knowledge: My wide-ranging knowledge across industries and sectors can be valuable when considering cross-disciplinary strategies and identifying innovative opportunities.
7. Data Privacy and Cybersecurity: Given the increasing importance of data privacy and cybersecurity, I can provide expertise in assessing and addressing these critical concerns.
8. Stakeholder Communication: I can contribute to effective stakeholder communication strategies, helping boards articulate complex matters in clear and understandable ways.
9. Board Training: I can support board education by providing information on emerging technologies, trends, and business models that might impact the company.
10. Crisis Management: In times of crisis, I can quickly aggregate information and provide potential response strategies, aiding the board in making timely and informed decisions.
As an Independent Director, my contributions would be centered around providing unbiased analysis, promoting strategic thinking, and ensuring that the board’s decisions are well-informed, ethically sound, and aligned with the company’s long-term goals.
Q9. Corporate Social Responsibility (CSR) is gaining prominence in the business world. How do you coordinate with corporations for CSR projects, and what impact do you believe such initiatives can have on society and businesses?
I am a member of Rotary Club of Mulund and have been associated with Rotary International since 2006. I have closely worked in their CSR Projects at various stages starting with ideation, brainstorming, conceiving, planning, coordination, execution, completion, reporting etc. The following are the ways corporates should typically coordinate the Corporate Social Responsibility (CSR) projects and assess the potential impacts of such initiatives on both society and businesses.
Coordinating CSR Projects:
1. Identifying Areas of Impact: Corporates need to conduct assessments to identify social and environmental issues that align with their values, business operations, and the needs of the communities they operate in.
2. Defining Objectives: Clear objectives are set for CSR initiatives, outlining what the company aims to achieve through its projects, whether it’s environmental sustainability, community development, education, healthcare, or other areas.
3. Stakeholder Engagement: Corporates should engage with stakeholders, including employees, customers, investors, NGOs, and local communities, to gather input, build partnerships, and ensure the initiatives address real needs.
4. Resource Allocation: Companies should allocate funds, human resources, and expertise to design and implement the CSR projects effectively.
5. Measurement and Reporting: Metrics are established to measure the impact of CSR projects, and regular reporting communicates the outcomes to stakeholders, fostering transparency and accountability.
Impact on Society:
1. Community Development: CSR initiatives contribute to the development of communities by addressing issues such as education, healthcare, sanitation, and infrastructure.
2. Environmental Conservation: Companies can reduce their environmental footprint through initiatives focused on reducing waste, conserving resources, and adopting sustainable practices.
3. Social Empowerment: CSR projects can empower marginalized groups by providing job opportunities, skills training, and promoting inclusivity and diversity.
4. Education and Skill Enhancement: Corporates can enhance educational opportunities by supporting schools, scholarships, and vocational training programs.
5. Health and Well-being: CSR initiatives in healthcare can improve access to medical services, promote wellness, and contribute to disease prevention.
Impact on Businesses:
1. Enhanced Reputation: Engaging in meaningful CSR initiatives can improve a company’s reputation and brand image, making it more attractive to customers, investors, and potential employees.
2. Employee Engagement: CSR projects can boost employee morale and engagement by providing them with opportunities to contribute to positive social and environmental changes.
In summary, well-executed CSR initiatives can have a profound positive impact on both society and businesses. They contribute to the betterment of communities, foster a positive business environment, and help companies thrive in a socially conscious marketplace.
Q10. Environmental, Social, and Governance (ESG) considerations are increasingly becoming important for companies. How do you advocate for ESG in the business landscape, and why do you think it’s crucial for businesses to integrate these principles into their operations?
I advocate for Environmental, Social, and Governance (ESG) considerations in the business landscape by promoting awareness of their significance, explaining their benefits, and emphasizing their alignment with long-term business success. Here’s how I approach advocating for ESG:
1. Raising Awareness: I provide information and insights on the significance of ESG factors, helping businesses understand the wide-ranging impact these considerations can have on their operations and stakeholders.
2. Educational Resources: I offer explanations, case studies, and best practices related to ESG, enabling businesses to make informed decisions about implementing ESG principles.
3. Highlighting Benefits: I emphasize the benefits of ESG, including improved reputation, better risk management, access to capital, innovation, and long-term sustainability, encouraging businesses to prioritize these aspects.
Importance of ESG Integration: Why ESG Integration is Crucial for Businesses:
1. Long-Term Value Creation: ESG integration helps companies focus on sustainable practices that create long-term value for all stakeholders, rather than pursuing short-term gains that might harm the environment or society.
2. Risk Management: Businesses that consider ESG factors are better equipped to identify and mitigate risks related to environmental, social, and governance issues. This reduces the potential for regulatory penalties, reputational damage, and financial losses.
3. Financial Performance: Studies have shown that companies with strong ESG performance often outperform their peers financially over the long term, attracting investors seeking both financial returns and positive societal impact.
4. Regulatory Compliance: Integrating ESG principles can help companies stay ahead of evolving regulations and compliance requirements related to environmental and social issues.
5. Global Relevance: ESG is becoming a global standard for responsible business practices, ensuring a company’s relevance and competitiveness in a socially conscious marketplace.
6. Resilience to Change: ESG integration equips businesses to adapt to changing societal expectations and emerging global challenges, positioning them as leaders in their industries.
7. Positive Social Impact: By considering social factors, businesses can contribute to the betterment of communities and societies, improving their overall impact beyond financial metrics.
8. Innovation and Adaptation: ESG considerations encourage companies to innovate and adapt to changing circumstances, leading to the development of new products and services that meet emerging societal needs.
In conclusion, advocating for ESG in the business landscape is essential because it aligns business success with broader societal and environmental well-being. Integrating ESG principles is not only a moral imperative but also a strategic decision that enhances a company’s resilience, reputation, and financial performance in an evolving and interconnected world.
Q11. Finally, please tell us about your family, and how their support has influenced your journey and accomplishments in both your personal and professional life?
I got married in May 2006. My father expired in March 2010 and my mother expired in September 2014. We were blessed with a son in December 2017. So, presently, my family consists of my wife and my 6 years old son. My mother and father during their lifetime have been of immense support to me. They fulfilled all my needs, demands and requirements with utmost love and care. My wife has always been supportive to me in all my endeavors and vice-versa. My son with his playful and cheerful activities keeps me engrossed and stress-free. She and my son are my pillars of strength. Family’s support, guidance and motivation has always influenced me during my journey and accomplishments in both my personal and professional life.