Proposal risk based internal audit 2013

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Proposal risk based internal audit 2013

  1. 1. 1 Proposal to provide Risk based internal audit and legal compliance services Riskpro India
  2. 2. 2 Make Decisions…… Take Risks……....... Your partner in Risk Management / compliance / audit Experience Success!
  3. 3. 3 Background - Who is Riskpro… Why us? ABOUT US  Riskpro is an organisation of member firms around India devoted to client service excellence. Member firms offer wide range of services in the field of risk management.  Currently it has offices in three major cities Mumbai, Delhi and Bangalore and alliances in other cities.  Managed by experienced professionals with experiences spanning various industries. MISSION  Provide integrated risk management consulting services to mid-large sized corporate /financial institutions in India  Be the preferred service provider for complete Governance, Risk and Compliance (GRC) solutions. VALUE PROPOSITION  You get quality advisory, normally delivered by large consulting firms, at fee levels charged by independent & small firms  High quality deliverables  Multi-skilled & multi-disciplined organisation.  Timely completion of any task  Affordable alternative to large firms DIFFERENTIATORS  Risk Management is our main focus  Over 200 years of cumulative experience  Hybrid Delivery model  Ability to take on large and complex projects due to delivery capabilities  We Hold hands, not shake hands.
  4. 4. 4 Riskpro’s Network Presence New Delhi Mumbai Bangalore Ahmedabad Pune Agra Salem Kolkata Hyderabad Chennai Jaipur
  5. 5. 5 Your requirements ● You require a firm with not only demonstrable skills and experience in your sector, but also the ability to deliver seamless compliance and business support services that match your development plans; ● You also wish to work with a firm that is personable and easy to deal with. While we operate in an environment that demands honed technical ability and a degree of formality, arising from the professional standards we observe, we regard ourselves as a flexible and responsive team that has client relationships at its heart; and ● You, also wish to ensure that your auditors, consultants and advisers are appropriate for tomorrow's environment.
  6. 6. 6 Our commitment We commit to you that we will: ● dedicate our best resources to ensure that your needs are met; ● provide an effective, efficient and smart consulting services; ● adhere to timeliness and reporting deadlines; ● provide constructive suggestions on improving processes and controls; ● work closely with your management in a co-operative environment; and ● keep you regularly updated on significant changes in regulatory, accounting and other compliance sectors.
  7. 7. 7 Our differentiating factors ● Adding value to the client and protecting their business is paramount and our logo symbolizes that bond of protection ● Unique combination of International, senior, hands on industry experience, across all areas of the requirement. ● Mature and deep domain expertise, along with current involvement in strategic business growth activity. ● Strengths in relation to Business Model and Objectives - Track Record of Ethical Practice ● Strengths in relation to Implementation Plan - Proven Success in taking businesses from Vision to Reality through tactical Implementation across all aspects of the plan ● Strengths in relation to Requirements- Track Record in geographical, Professional and Business areas. ● Value for money ● Building enduring relationships with all our clients as a trusted business partner
  8. 8. 8 Riskpro Clients Our Clients *Any trademarks or logos used throughout this presentation are the property of their respective owners Banking/ Insurance Corporate MNC Banking Intl Consulting IT / Others
  9. 9. 9 Team Experiences Our Experiences Any trademarks or logos used throughout this presentation are the property of their respective owners Our team members have worked at world class Companies
  10. 10. 10 Quality assured We place great emphasis on quality control and quality management. Our quality process Our Quality Process is designed to provide a quality culture, to analyze the processes used to hire, train and retain staff, to develop and deliver services to our clients and to administer our own business. Skills and competence Personnel in the firm adhere to the standards of independence, integrity, objectivity and confidentiality. The firm is staffed by personnel who have attained, and who maintain, the skills and competence required to enable them to fulfill their responsibilities. To assist in maintaining these skills the firm has procedures for:  training of staff at all levels, through both formal courses and on-the-job experience;  continuing professional education;  assigning work to personnel who have the degree of technical training and proficiency required in the circumstances; and  evaluating the performance of staff and counseling staff as to their progress and career opportunities. ` CONTINUOUSIMPROVEMENT Leadership andQuality Culture Information Analysis and Planning Human Resource Processes External Service Processes Business Processes Service Delivery Measure Client Satisfaction andBusiness Results Direction and supervision The firm provides for appropriate direction and supervision at all levels, together with appropriate consultation procedures, to give reasonable assurance that the work performed meets the highest standards. We:  employ and retain only those persons with the intelligence, education, character and diligence necessary to assume professional responsibility;  assign engagement responsibility to only those persons sufficiently trained and supervised to discharge those responsibilities;  not accept or continue a client relationship in circumstances incompatible with the firm’s integrity;  adopt promptly policies necessary to realise the objective of professional standards and applicable regulatory requirements;  maintain policies to ensure that the firm and its professionals are free of conflicts of interest and that professional excellence is achieved;  not tolerate any act that can damage the firm’s credibility. Confidentiality We are well aware of the importance that you place on confidentiality requirements and we have a proven record of maintaining a strict code of confidentiality. Our firm policy requires that affairs of clients be confidentially kept at all times.
  11. 11. 11 Clear and continuous communication At Riskpro India, open and honest communication is a Core Value. Our experience leaves us in no doubt that a successful relationship is based on trust and candid, proactive communication. Regular and open two-way communication is fundamental to all aspects of our service to you. As an initial priority, we will agree with you an annual Communication Plan for all our key meetings. This will help ensure there are formal and informal opportunities for all key stakeholders to be kept informed of the issues that matter, and that there will be “no surprises”. Key objectivesMeeting/stakeholders  Present annual audit plan  Report key findings  Updated assessments of key risks, including emerging risks  Discuss new regulatory and corporate governance requirements Bi-annual meetings (or as requested) with the Board / Audit Committee  Discuss strategy  Discuss operational matters and performance  Raise and consider emerging issues Quarterly meetings with the Chief Executive Officer  Discuss operational matters and financial performance  Discuss implications of changes to the reporting and internal control framework Regular meetings with Head of Financial Control  Discuss operational and business mattersMeetings with operational management
  12. 12. 12 Our fees Our aim is to build a long-term relationship with you. We believe that the essence of building such a relationship is the quality of the service and expertise that we provide. We also believe that the combination of our international expertise with local market knowledge enables us to propose a fee that provides value to you. Accordingly our fee will be structured as a fixed fee which would be payable in two equal instalments, on commencement of the engagement and on submission of the draft report. No Particulars Per Diem Rate - INR 1 Staff Category Partner 8,000 - 30,000 Manager 4,000 - 6,000 Staff Accountant ~ Rs 2,000 2 Expenses Travel and Conveyance Board and Lodging Actual Cost ex Delhi, and ex Mumbai
  13. 13. 13 RESUMES – Our team  Co-Founder - Riskpro  CA, CPA, MBA-Finance (USA), FRM (GARP)  Over 10 years international experience – 6 years in Bahrain and 4 years USA  15 years exp in risk management consulting and internal audits, Specialization in Operational Risk, Basel II, Sox and Control design  Worked for Ernst & Young (Bahrain), Arab Investment Company (Bahrain), Navigant Consulting(USA), Kotak Mahindra Bank (India) and Credit Suisse(India)  Sox Compliance project for Fannie Mae, USA ( $900+ Billion Mortgage Company) ManojJain  Co- Founder - Riskpro  CA (India), MBA (Netherlands), CIA (USA)  Over 15 years of extensive internal and external audit experience in India and abroad.  Worked with KPMG United Arab Emirates, PKF South Africa, Ernst and Young Kuwait, Deloitte Netherlands and KPMG India.  Worked with clients in a wide variety of industries and countries including trading, retail and consumer goods, NGO, manufacturing and banking and finance. Major clients include banks, investment companies, manufacturing organizations, aviation etc. RahulBhan Credentials
  14. 14. 14 RESUMES - Our team  Co-Founder - Riskpro  PGD (Electrical & Electronics & Computer Programming)  30 years of experience in Information & Communications Technology (ICT) Solutions for Retail, Garments, Manufacturing, Services Industries.  Has created Companies, Divisions, Products, Brands, Teams & Markets.  Consulting in Business, Technology, Marketing & Sales & Strategic Planning.  Advisory, Training, Workshops & Implementation in Systems Thinking, Systems Modeling & Balanced Scorecard  Worked with TIFR, Mahindra, Ambience, Communico-Graphique & Ionidea Inc, USA, CasperAbraham Credentials  Senior Vice President – Risk Management (Fraud Risk, BFSI)  MBA, PDFM, NSE-NCFM, PMP, CSSGB,Trained ISO 9001:2000 I.A  Professional with 17 years of rich experience into diverse Consumer finance/ Lending operations ,Risk Management,BPMS, Consumer Banking, NBFC, Management Consulting & Housing finance in BFSI industry having successfully led key business strategic engagements across multi-product environment in APAC, Australia and US regions.  Worked with GE, ABN AMRO Bank, Citigroup, Accenture, Deutsche Postbank  Highly skilled and expert Trainer in Fraud Risk areas across Credit, Corporate Risk management.  Specializes in Fraud Control, Compliance QA ,ERM and Regulatory governance. HemantSeigell
  15. 15. 15 RESUMES - Our team  Head – Taxation Risk Advisory  B.Com, FCA  Senior Partner with 48 year old Delhi based Chartered Accountant firm, Mehrotra and Mehrotra  Over 19 years of experience in the field of Audit, Taxation, Company law matters.  Major clients served are NTPC, BHEL, Bank of India, PNB, Airport Authority of India etc. RajeshJhalani Credentials President – Banking & Financial Services  A senior researcher in Applied Mathematics leading to Ph.D after MSc (Mathematics), CWA, CAIIB  Combined experience of 25+ years in corporate banking, risk management, international trade finance, development of risk rating models, project finance, credit monitoring and NPA management  Since 2006 conducting open / in-house training on the above domains to all Top public/ new and old private sector banks, top MNC banks (India and abroad), leading NBFCs and corporates in manufacturing and financial services space; Worked on IFC (World Bank) funded projects for MSMEs in India and abroad  Worked for Bank of Baroda and ICICI Bank – bestowed Top Performer Award continuously two years during his tenure; widely travelled abroad for business relations, seminars, offering training, investor meetings, NYSE listing and for processes involving establishment of representative Office in USA Sivaramakrishnan
  16. 16. 16 Executive Vice President – Risk Management ( Banking & Financial Services)  A hands-on banking professional {BSc (Mathematics), CAIIB} with considerable domestic and international experience  An aggregate experience of 24+ years across industry, mainly BFSI in several functional areas including Retail and Commercial Banking, Corporate Lending, team member of the Business Process Re-Engineering project (BPR); conceptualizing and setting up shared services centres for centralized operations for the Bank in India.  Management through ERM framework overseeing all key areas of the business through various Operational Risk tools like KRI / RCSA matrices. Managing of major project implementation of Basel II and Compliance risk framework  Directing, reviewing and advising Board of Directors on various compliance issues and representing the bank to the Central Bank regulatory offices.  Worked for ANZ Grindlays Bank, Standard Chartered, Bahraini Saudi Bank and Dubai Holdings ( subsidiary) KashiBanerjeeRESUMES - Our team Credentials Consultant – Information Security & IT Governance  LLB, CA, CISA, CWA, CS, CFE and others  Over 15 years of experience in the field of Audit, Taxation, Investigations.  Specializing in the field of Systems Audit, Cybrex Audit, Computer Crime Investigations, IS Forensics  International Committee Member of Governmental and Regulatory Agencies Board and Academic Relations Committee of ISACA, USA AnjayAgarwal
  17. 17. 17 RESUMES - Our team Credentials PhanindraPrakash  Vice President – Riskpro India  FCA [India], ACMA [India], CFE [USA], CertIFRS [UK]  Over 16 years of extensive consulting experience which includes financial & systems audit, process transformation, implementation of internal controls, SOX compliance, fraud audits & due diligence, US-India taxation  Engaged in consulting roles as trusted advisor to finance, internal audit and information technology executives of multiple Fortune 1000 companies with project sites in US, Canada, Europe & Asia  Worked with E&Y and Deloitte Consulting in USA  Some of the major clients served internationally are GE Capital, UBS, McKesson, Eaton, Imation, Albertsons,  EVP and Head – Telecom Risk Advisory  M.Tech, IIT Kharagpur, India; IES; Doctoral study, research and teaching in Linkoping University/Sweden; Lead Auditor (BVQI).  Over 30 years on International experience in networks and mobile Handsets from top global companies /institutes like ISRO, Ericsson, Nokia, Nokia Siemens Networks and based mostly in its head quarter locations in India, EU, USA.  Expertise: Setting up capability, behaviour, culture in turning Risk, Quality, Innovation for competitive advantage, customer delight and sustainability; key skill sets are Engagement, Handholding, Coaching, Mentoring and lot of best practices, benchmarking/standards like CMMI, TL9000, Six Sigma, ISO, SAS 70 etc. AsokSit
  18. 18. 18 RESUMES - Our team Credentials SiddharthaGhosh  Executive Vice President – Riskpro India  CPA (USA), ACA, ACS, Grad CWA (India), MBA (USA), Associate ICPAS (Singapore)  Over 25 years of extensive audit and industry experience which includes 19 years with Rolls-Royce India Pvt Ltd at New Delhi and its associate and parent companies of Rolls- Royce in UK, USA and Singapore in all aspects of Finance, Taxation, Audit, Banking, Legal, Company Secretarial, Statutory compliances and due diligence, Internal Control, ESOP, Budgets, Cashflows, Forecasts, MIS Reporting, HR, Expatriate & Office Administration, Payroll, IT, Retirement Funds Administration, Shared Services, Project Accounts, etc.  Worked with Price Waterhouse Coopers for 4 years with reputed MNCs, banks, Indian corporate houses  Worked with McNally Bharat Engineering Company Ltd for 4 years PritiTawari  Vice President – Riskpro India  B. Com, ACA, Dip. IFRS  Over 6 years of extensive audit and industry experience in all aspects of Finance, Taxation, Audit, Legal, Company Secretarial, Statutory compliances and due diligence, Internal Control, Budgets, Cash flows, Forecasts, MIS Reporting, HR, Expatriate & Office Administration, Payroll, IT, Project Accounts, etc.  Worked with Price Waterhouse Coopers for 3 years in audit & assurance for reputed MNCs, Indian corporate houses.  Engage in own practice since 2010 specialize in outsourcing of finance department in mid size MNCs and consultation in Indirect Taxes and Management Reporting
  19. 19. 19 Executive Vice President – Risk Management ( Banking & Financial Services)  Professional Risk Manager with considerable domestic and international experience  An aggregate experience of 30 + years across industry, mainly Banking in several functional areas including Wholesale Credit Risk, Operational Risk, Trade Finance , Retail Banking and Islamic Financial Services.  Track record of setting up of excellence in the set-up, and management of credit and operational risk, compliance and credit administration functions in retail, commercial , Islamic Banking and offshore banking entities in the Middle East.  Key strength includes Corporate Credits, Risk Management in IT, implementation of Risk Management module in core banking Bank’s Policies, procedures, Country Risk. Played an active role in 3 core banking software implementations  Worked for a Private Sector Bank in India, ABN AMRO Bank, Bahrain, Bank Muscat Bahrain and BMI Bank Bahrain as AGM Risk Management. VijayanGovindarajanRESUMES - Our team Credentials
  20. 20. 20 RESUMES - Our team Credentials ManojKumar Senior Vice President CAIIB 20 Years of hard core banking experience in India’s most reputed banks across wide functional areas. Worked with Central Bank of India, ICICI Bank, HDFC Bank, and Axis Bank as Asst Vice President, Cluster Head, and Branch Head. Areas of expertise are Financial Risk Management, NPA-Credit-Debt Management, Asset Reconstruction, Project Finance, and others. Accomplished several achievements in the functional areas of banking.
  21. 21. 21  Specialist Risk Consultant – Business Continuity  Founder and 15-year Chairman of Survive, the first international user group for Business Continuity professionals  Founding director and first Fellow of the Business Continuity Institute  Over 25 years international consulting expertise in Risk, Crisis, Emergency, Incident, and Business Continuity and ICT Disaster Recovery Management  Multi-sector experience including Banking, Insurance, Finance, Oil, Gas, Energy, Manufacturing, Retail, Hi-Tech & Telecom  Western Press Award for services to business, 1994; BCI/CIR nomination for lifetime achievement in BC, 1999, London; inducted into BC Hall of Fame by CPM magazine, 2004, Washington DC. AndrewHilesRESUMES - PARTNERSHIPS  Specialist Risk Consultant – Enterprise Risk Management  Highly skilled risk and insurance professional with 25 years of experience designing, developing and implementing large, global corporate risk management programs for Fortune 500 firms.  Principal Consultant and Founder - Excellence in Risk Management, LLC. (Texas, USA) Co-founder and EVP, Professional Services, rPM3 Solutions, LLC (Maryland, USA).  Past experiences include Head of Global Risk Management for USAA, PepsiCo/Tricon Global and American National Red Cross  Additional risk and insurance experience at Verizon Corp,. Marsh USA and Liberty Mutual Insurance Co.  2004 Risk Manager of the Year – 2007 recipient of the Alexander Hamilton Award for “Excellence in ERM” (at USAA) – former President, Risk and Insurance Management Society, Inc. ChrisE.Mandel
  22. 22. 22 Key Contacts Corporate Mumbai Delhi Bangalore Riskpro India Ventures (P) Limited info@riskpro.in www.riskpro.in F 186, Sarita Vihar New Delhi 110076 Manoj Jain Director M- 98337 67114 manoj.jain@riskpro.in Shriram Gokte EVP - Risk Management M- 98209 94063 shriram.gokte@riskpro.in Sivaramakrishnan President – Banking & FS M- 98690 19311 smaran.iyer@riskpro.in Rahul Bhan Director M- 99680 05042 rahul.bhan@riskpro.in Hemant Seigell SVP – Risk Management M- 99536 97905 hemant.seigell@riskpro.in Casper Abraham Director M- 98450 61870 casper.abraham@riskpro.in Vijayan Govindarajan EVP – Risk Management M- 99166 63652 vijayan.govindarajan@riskpro.in Ravikiran Bhandari VP – IT Risk Advisory M- 99001 69562 ravikiran.bhandari@riskpro.in Ghaziabad / Noida Chennai Kolkata Gurgaon Siddhartha Ghosh EVP - Finance M- 9810058072 Siddhartha.Ghosh@riskpro.in R Gupta - Insurance Risk M- 98101 07387 R. Muralidharan EVP – Risk Management M- 95660 77326 murali@riskpro.in Kashi Banerjee EVP – Risk Management M- 98304 75375 kashi.banerjee@riskpro.in Nilesh Bhatia Head – Human Capital Mgt. M- 98182 93434 nilesh.bhatia@riskpro.in Asok Sit EVP – Telecom Risk Advisory M- 98105 03463 asok.sit@riskpro.in Pune Salem Ahmedabad Hyderabad / Agra M.L. Jain Principal – Strategy Risk M- 98220 11987 mljain@riskpro.in Priti Tawari M- 9011054085 Chandrasekeran Recruitment franchisee M – 94435 99132 Manoj Kumar M – 98983 65320 Maulik Manakiwala M – 98256 40046 Gourav Ladha Phanindra Prakash (Hyderabad) Member Firm M- 95500 61616 Alok Kumar Agarwal (Agra) Member Firm M- 99971 65253
  23. 23. 23 ANNEXURE I - Our Audit Methodology
  24. 24. 24 Our audit methodology - Risk Based Internal Audit How we Do Transaction Audit Control Reviews Process Reviews Risk Assessment Fraud Mitigation Enterprise Risk Assessment Increasing Enterprise Risk Focus NeedofOrganizations Internal Auditing helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. Source: The Institute of Internal Auditors 1999 (IIA) Benefits of Risk based Audit • Traditional audit view value added techniques •Risk profile of Businesses •Internal Controls & Ops Risk reviews •Cost reductions recommendations •Review of Fraud Risk Controls
  25. 25. 25 Our audit methodology Our audit methodology is risk-based and systematic which focuses on the organizational objectives and any impediment to achieving those objectives. We recognise fully the need to provide assurance on your business operations. Equally, we recognise the importance of managing compliance issues, particularly in today’s evolving regulatory environment. The key benefits of our audit approach are: ●Risk-based, & systematic approach; ●Focus on areas considered as potentially & most likely to lead to material errors in financial statements; ●Our audit control procedures are based on project planning techniques, including the use of automated processes and document templates, and the agreement of objectives, timetables, responsibilities and careful resource planning; ●The focus of our reports are to generate constructive and value added advice; and ●Identifies performance improvement and cost reduction opportunities. Audit Strategy / Planning Risk Assessment Understanding of Business Fieldwork Dealing with critical issues Reporting
  26. 26. 26 Our audit methodology (cont..) UNDERSTANDING THE BUSINESS Our top-down risk-based approach ensures that the audit focus is on the issues that are of greatest importance to you and that we are in the most appropriate position to respond to them. Our audit starts with a detailed understanding of your industry and business. Our approach is based on a top-down examination of the key drivers of your business. The output is a balanced picture of how the company interacts with customers and external industry forces. We consider the audit implications of this analysis and use it to identify significant audit risks. We use industry specific business models to gain information on: • industry background including major players, regulatory changes and trends, • risks and drivers, • geographic issues, • descriptions of business processes, • benchmarks and best practice and • audit risks.
  27. 27. 27 Our audit methodology (cont..) RISK ASSESSMENT In order to run your business, you develop processes to manage the factors that drive performance and help control internal and external risks that could prevent you from meeting your objectives. We focus on those processes where significant risks have been identified and discuss with management its perception of how these risks are controlled. This phase of our work enables us to obtain information on the processes supporting the achievement of the company’s goals. AUDIT STRATEGY AND PLANNING Based on the understanding of business and risk assessment we devise the audit strategy. We then develop detailed audit programs to test the transactions, processes and balances. AUDIT FIELD WORK The audit test work flows from strategic planning and risk assessment. The key element is to review and test the high level controls embedded in your processes, as significant weaknesses in your key processes could cost, both in terms of financial impact and reputational damage. We also carry out necessary substantive audit procedures. DEALING WITH CRITICAL ISSUES AND REPORTING We identify and discuss all critical issues with management. We then determine whether the Company’s financial statements and related disclosures meet our expectations. We provide the audit report, management letter and any other deliverables and formally present these to the Audit Committee / Board.
  28. 28. 28 Our audit methodology (cont..) IT AUDIT PROCESSES AND METHODOLOGY We see IT as an enabler of the operational and financial processes and we incorporate IT audit professionals into our audit to facilitate the identification and testing of IT controls. We use our focused IT audit methodologies and tools as part of our core audit process to evaluate and test whether the Company’s information systems are configured for data integrity, are secure and are effectively managing the business needs. We work with key business and IT management to identify aspects of IT that pose the highest risk to the Company. We then conduct a systematic, detailed review of those areas in which we: • identify appropriate IT control objectives that map to key business processes; • identify relevant IT policies and procedures and/or industry IT standards; and • evaluate the design of controls and test whether they are in place and operating effectively.
  29. 29. 29 Our audit methodology (cont..) We use the following types of IT methodologies:  Continuity management  System capacity and availability  Back up and recovery  Data storage  Project risk assessment  Quality Assurance  Project management methodology  Programme management processes  Process Documentation  Control Risk Analysis  Control Design & Implementation  Network penetration testing  Information security assessment  Enterprise security architecture and integration  Ongoing monitoring ITAUDITMETHODOLOGIES
  30. 30. 30 Our audit methodology (cont..) INTELLIGENT USE OF TECHNOLOGY Technology is only one component of an integrated approach that combines methodology, knowledge and technology into our tailored service to you. We deliver our external audit services using a fully automated audit software. This software is designed specifically to integrate knowledge management into the audit process. Technology can never be a substitute for face-to-face communications and we continue to rely on meetings with management to identify, resolve and communicate issues. Knowledge M ethodologyTechnology Knowledge M ethodologyTechnology
  31. 31. 31 Strategic questions with regard to the engagement • Have you had any personnel changes that have impacted your area? • Have you had any computer system/computer software changes and are any projected for your area? • Has your area experienced any losses in recent years? If so, please describe. • Do any third parties such as the external auditors or regulatory auditors review your area? If so, please provide the report. • Do you have any regulatory reporting requirements? Describe the frequency and sensitivity of the filing. • How much do you rely on manual processing in lieu of computer processing? • What areas have you experienced poor performance? • Has the volume of transactions processed in your area changed? • What type of impact could your unit have on the Association’s reputation, if you did not meet your mission? • Do you have any Program performance issues that you want reviewed?
  32. 32. 32 ANNEXURE II - Legal Compliance
  33. 33. 33 Legal compliance Stage 1 – CAC  Preparation of Compliance Audit Checklist (CAC) covering all relevant laws applicable to the target unit. Stage 2 - Visit to location  Verification of relevant records and documents available.  Compilation of draft report based upon findings and observations of the audit team  Review meeting with the unit head / work directors to discussion on the finding of audit. Stage 3 – Report  Submission of detailed Non Compliance (NC) report to the company (Board of Directors or Compliance Head)  Follow up with the unit to verify action taken
  34. 34. 34 Legal compliance (Acts covered - HR) Factories Act, 1948 Shop & Establishment Act (state acts) Payment of Wages Act, 1936 Maternity Benefits Act, 1961 Minimum Wages Act, 1948 Gratuity Act, 1972 Equal Remuneration Act, 1976 ESI Act, 1948 Payment of Bonus Act, 1965 Apprentices Act, 1961 Provident Fund & Misc Provisions Act, 1952 Employment Exchanges (Compulsory Notification of Vacancies Act), 1959 Contract Labour (Regulation & Abolition) act, 1970 Trade Unions Act, 1926 Workmen Compensation Act, 1923 Private Security Agencies Regulation Act, 2005 Prevention of Sexual Harassment (Guidelines) Industrial Disputes Act, 1947 Labour Welfare Act (state acts)
  35. 35. 35 Legal compliance (Acts covered - Engg.) Electricity Act, 2003 Environment Protection Act, 1986 Petroleum Act, 1934 Water (Prevention and Control of Pollution) Act, 1981 Explosives Act, 1884 Air (Prevention and Control of Pollution) Act, 1981 Boilers Act, 1923 Water Cess Rules, 1977 Legal Meteorology Act, 2011 Hazardous Waste Handling & Management Rules, 1989 Essential Commodity Act, 1945
  36. 36. 36 Legal compliance (Acts covered – Tax & Misc) Micro, Small & Medium Enterprises Devel. Act, 2006 Central Excise Act, 1944 Central Sales Tax Act, 1956 State VAT Acts Customs Act, 1962 (export and import documentation) Service Tax Act, 1955 Income Tax Act (payment of Tax, TDS) Foreign Exchange Management Act Negotiable Instruments Act, 1881 Industries (Development & Regulation) Act, 1951 Information Technology Act, 2000 Motor Vehicles Act, 1988 Competition Act, 2002

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