Thanks to the reply by Gord Dibben on this thread, I got an answer I desperately wanted and have decided to register on this site for more such help I might need.
However, one correction to Dibben's reply - 'Move and Size with cell'need not be ON, 'Move but don't Size' is fine. The only other requirement seems to be that the picture visually lie completely within the cell boundaries. Which means that the cell should be resized to larger than the picture and the picture moved to lie completely within it.