Nurturing & Developing the Emerging Areas of Practice<br />Corporate Governance & Corporate Compliance Management<br />PAV...
“In this fast changing world…<br /> opportunities are unlimited …, <br />and future belongs to those …<br /> who grasp the...
Emerging Scenario<br />
Emerging Scenario<br />Globalization<br />Common Law<br />Single window <br />Interface<br />e- Governance<br />Simplified...
Globalization<br />What is Globalization<br />Integration<br />Interaction<br />Laws<br />Companies<br />Business<br />Peo...
Impact of Globalization<br />In WTO regime, Globalization will lead to<br />Commonality of Law<br />
And<br />Common Law will lead to <br />Global Competition<br />
Globalized Scenario<br />International Corporate Governance <br />International Common Regulatory Framework<br />Global Ou...
Globalization Challenges<br />Quality of Service <br />Time Commitment<br />International Operational Infrastructure<br />...
e- Governance<br />What is e-governance?<br />Use of Information Technology<br />For increasing Efficiency<br />For Simpli...
Impact of e- Governance<br />
e-governance & IT Scenario<br />Seamless Integration of National & International Business<br />From anywhere – Small villa...
Impact of e-governance<br />IT Driven regulatory procedures<br />Minimization of procedural steps<br />Minimization of Non...
Single –window Interface<br />Single window interface<br />implies<br />Complete services under one umbrella<br />
In the emerging scenario of ..<br />Globalization, <br />Common Law, <br />e-governance, <br />Simplification of Laws&<br ...
“And <br />Success will come only when preparation meets opportunity…”<br />
Preparations for success in Emerging Scenario…<br />
“Not only opportunity <br />but <br />Corporate Governance<br />& <br />Corporate Compliance Management<br />are demands o...
Corporate Governance<br />“CORPORATE GOVERNANCE <br />is creation of a culture of <br />consciousness, transparency and op...
Wealth Creation<br />Wealth Management<br />Wealth Sharing<br />?<br />Distribu-        tion<br />Happiness and<br />Prosp...
Infrastructure
Risk Management</li></ul>Best Management Practices are Vital Here<br />Law and Ethics are Vital Here<br />Corporate Govern...
ROLE OF STAKEHOLDERS<br />Supply Funds, Materials and Services<br />Value Addition and Management of Resources<br />Give O...
Significance of CG<br />The significance of Corporate Governance lies in the fact that its absence can undermine economica...
Significance of CG<br />Transparency in operations <br />Entry of Best Talent & Skill<br />Creation of Brand Image<br />Co...
Who shall take responsibility<br />A person who possesses the knowledge of <br />Law + Management<br />
Law        	    + 	         Management<br />Corporate <br />Communication<br />Corporate<br />Planning<br />Legal<br />Hum...
But who possesses knowledge of <br />Law +Management<br />
Financial, Treasury & Forex Management<br />Strategic Management, Alliances & International Trade<br />Governance, Busines...
Role of ICSI<br />to create<br /> Brand Affiliation of CS<br />With Corporate Governance<br />
Implementation Strategies<br /><ul><li>Change mind set of Yourself and Promoters
Show Success story of Good Governance of other companies….
Show the VALUE CREATION
Create transparency in your dealing
Follow good governed Board practices
Compliance of Law in LETTER AND SPIRIT</li></li></ul><li>Role of ICSI<br />ICSI has taken the responsibility to develop th...
ICSI  efforts for CG<br />Vision & Mission<br />Vision- “To be global leader in development of professionals specializing ...
ICSI efforts for CG<br />Award for Corporate Governance<br />Post – Membership course in Corporate Governance<br />Revisio...
Future Endeavors <br />Secretarial Standards on Corporate Governance<br />Guidance note on Corporate Governance Practices<...
Corporate Governance is not about just doing the compliances. <br />CG is about Managingthe Compliances.<br />“Managing Co...
Corporate Compliance Management  (CCM)<br />Another Emerging opportunity in Emerging Scenario<br />
Corporate Compliance Management<br />Corporate Compliance Management <br />is nothing but the<br />Opportunity <br />Lying...
Present Status of Compliance Services<br />
Implementation  of Compliance Services with<br />Corporate Compliance Management<br />The Five step process …<br />Step I ...
Step I : Understanding The Company <br /><ul><li>Company’s History & Background
Capital Structure & Evolution
Promoters & Group Companies
Management & Administration buildup
Financial Soundness & Debt Structure
Risk Management & Protection
Licenses & Approvals </li></li></ul><li>Step II : Identification Process <br />
General application of Laws<br />
Sectoral application of Laws<br />
Tourism And Hotel<br />Capital Market And <br />Its Intermediaries<br />Financial Services<br />Textiles<br />Banking And ...
Global Operations<br />Indian Operations<br />Geographical application of Laws<br />
Step III – Evaluation of Compliance Timings<br />
Step IV - Assessment<br />Identify the gap between the present compliance system and the results of evaluation process<br />
Step V :  Creation Of Compliance Structure<br /><ul><li>Establishing Controls & Standard
Delegation of Responsibility
Analysis & Assessment
Compliance Reporting</li></li></ul><li>Compliance Management Tools<br />Checklists<br />Due Diligence<br />Softwares<br />...
Case Study<br />CCM in Corporates<br />
Explaining the Process <br />Understanding The Company <br />CEMENT INDUSTRY<br /><ul><li>Public Limited Company
Listed Company – BSE, NSE
Manufacturing & Trading
Exporting Company
10,000 No. of Employees  (Approx.)
Units Located at Bhubaneswar, Rajnagpur  </li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process ...
Income Tax Act, 1961
SEBI (Insider Trading) Regulations, 1992
SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997
Listing Agreement</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of Se...
Environment (Prevention of pollution control) Act, 1986
Central Excise Act</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of T...
Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
Mines and Minerals (Development and Regulation) Act, 1957
Mineral Conservation and Development Rules, 1988
Metalliferous Mine Regulations, 1961.
Explosives Act, 1884</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of...
Factories Act, 1948
Payment of Gratuity Act, 1972
Industrial Dispute Act, 1947
Employees State Insurance Act, 1948
Payment of Wages Act, 1936
Minimum Wages Act, 1948 & Minimum Wages (Central) Rules, 1950</li></li></ul><li>Identification of Applicable Laws<br />Exp...
Foreign Trade Policy
Customs Act</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of location...
Value Added Tax
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Nurturing & Developing The Emerging Areas Of Practice - Corporate Governance And Corporate Compliance Management

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This presentation deals with the importance of Corporate Governance and Corporate Compliance Management in the emerging scenario of Globalisation, Common Law, E-governance, simplification of laws and single window interface.

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Nurturing & Developing The Emerging Areas Of Practice - Corporate Governance And Corporate Compliance Management

  1. 1. Nurturing & Developing the Emerging Areas of Practice<br />Corporate Governance & Corporate Compliance Management<br />PAVAN KUMAR VIJAY, <br />Managing Director<br />
  2. 2. “In this fast changing world…<br /> opportunities are unlimited …, <br />and future belongs to those …<br /> who grasp these opportunities before they become a necessity.”<br />
  3. 3. Emerging Scenario<br />
  4. 4. Emerging Scenario<br />Globalization<br />Common Law<br />Single window <br />Interface<br />e- Governance<br />Simplified Law<br />
  5. 5. Globalization<br />What is Globalization<br />Integration<br />Interaction<br />Laws<br />Companies<br />Business<br />People<br />Thus, it is a process driven by international trade and investment and aided by information technology<br />
  6. 6. Impact of Globalization<br />In WTO regime, Globalization will lead to<br />Commonality of Law<br />
  7. 7. And<br />Common Law will lead to <br />Global Competition<br />
  8. 8. Globalized Scenario<br />International Corporate Governance <br />International Common Regulatory Framework<br />Global Outsourcing of services<br />Global work culture<br />Quality of Competition<br />
  9. 9. Globalization Challenges<br />Quality of Service <br />Time Commitment<br />International Operational Infrastructure<br />Qualitative competition among professionals <br />Adherence to International standards<br />
  10. 10. e- Governance<br />What is e-governance?<br />Use of Information Technology<br />For increasing Efficiency<br />For Simplification of Laws<br />Service Delivery<br />Uniformity & Transparency<br />
  11. 11. Impact of e- Governance<br />
  12. 12.
  13. 13. e-governance & IT Scenario<br />Seamless Integration of National & International Business<br />From anywhere – Small village to big cities<br />At anytime – Early morning to midnight.<br />In any manner – Internet, Mobile, PDA, etc<br />24 X 7 Online Services<br />Real-time Due Diligence, Rating and Compliances<br />Global Data Banks<br />
  14. 14. Impact of e-governance<br />IT Driven regulatory procedures<br />Minimization of procedural steps<br />Minimization of Non-compliances<br />IT Driven compliance services<br />Strategic Role of all professionals<br />Global services <br />
  15. 15. Single –window Interface<br />Single window interface<br />implies<br />Complete services under one umbrella<br />
  16. 16. In the emerging scenario of ..<br />Globalization, <br />Common Law, <br />e-governance, <br />Simplification of Laws&<br />Single Window interface …<br />“Opportunities are unlimited …”<br />
  17. 17. “And <br />Success will come only when preparation meets opportunity…”<br />
  18. 18. Preparations for success in Emerging Scenario…<br />
  19. 19. “Not only opportunity <br />but <br />Corporate Governance<br />& <br />Corporate Compliance Management<br />are demands of Emerging Scenario…”<br />
  20. 20.
  21. 21. Corporate Governance<br />“CORPORATE GOVERNANCE <br />is creation of a culture of <br />consciousness, transparency and openness. <br />It refers to combination of laws, rules, regulations, procedures and voluntary practicesto enable the companies to maximize the long-term shareholders value, customer satisfaction and wealth.”<br />
  22. 22. Wealth Creation<br />Wealth Management<br />Wealth Sharing<br />?<br />Distribu- tion<br />Happiness and<br />Prosperity of all<br />Stakeholders<br />Output – Input <br />= Wealth Created<br /><ul><li>SUPPLIERS</li></ul>Adequate Returns<br /><ul><li>HUMAN ASSETS</li></ul>Adequate <br /> Remuneration<br /><ul><li>CUSTOMERS</li></ul>Affordable Prices<br /><ul><li>PUBLIC</li></ul>Payment of Taxes and Partnership in National Development Projects<br />Reinvestment<br />Enhanced<br />Capabilities<br />Sustainability<br /><ul><li>Research and</li></ul> Development<br /><ul><li>HR Development
  23. 23. Infrastructure
  24. 24. Risk Management</li></ul>Best Management Practices are Vital Here<br />Law and Ethics are Vital Here<br />Corporate Governance Framework<br />
  25. 25. ROLE OF STAKEHOLDERS<br />Supply Funds, Materials and Services<br />Value Addition and Management of Resources<br />Give Opportunity to Co. to Satisfy their Needs<br />SUPPLIERS<br />CUSTOMERS<br />HUMAN RESOURCE<br />Adequate Returns for Funds, Material and Services Supplied<br />Adequate Salary and Security for leading a Happy Life<br />Best Quality Products and Customer Care at Minimum Prices<br />EXPECTATIONS OF STAKEHOLDERS<br />PUBLIC<br />Potential Suppliers, Human Resources and Customers<br />Biological, Economic and Cultural Environment<br />PUBLIC EXPECTS PARTNERHIP FOR SUSTAINABLE DEVELOPMENT<br />Stakeholders in Value Chain<br />
  26. 26. Significance of CG<br />The significance of Corporate Governance lies in the fact that its absence can undermine economicand financial stability…<br />
  27. 27. Significance of CG<br />Transparency in operations <br />Entry of Best Talent & Skill<br />Creation of Brand Image<br />Consciousness to adopt best practices<br />In nutshell…<br />GLOBAL GROWTH<br />Higher Valuation<br />Widened opportunities of services <br />International <br />Tie-ups<br />Easier Access to capital (FII, VCF, Foreign Markets)<br />Confidence of domestic & international investors<br />
  28. 28. Who shall take responsibility<br />A person who possesses the knowledge of <br />Law + Management<br />
  29. 29. Law + Management<br />Corporate <br />Communication<br />Corporate<br />Planning<br />Legal<br />Human <br />Resources<br />Knowledge of … <br />Marketing<br />Finance and<br />Accounts<br />Information <br />Technology<br />Production <br />And operations<br />
  30. 30. But who possesses knowledge of <br />Law +Management<br />
  31. 31. Financial, Treasury & Forex Management<br />Strategic Management, Alliances & International Trade<br />Governance, Business Ethics & Sustainability<br />Due Diligence & Corporate Compliance management<br />Corporate Laws<br />Commercial Laws<br />Taxation Laws<br />Accounting Laws<br />Securities Laws<br />Corporate Restructuring & Insolvency Laws<br />Economic & Labour Laws<br />Company Secretary<br />Law + Management<br />
  32. 32.
  33. 33. Role of ICSI<br />to create<br /> Brand Affiliation of CS<br />With Corporate Governance<br />
  34. 34. Implementation Strategies<br /><ul><li>Change mind set of Yourself and Promoters
  35. 35. Show Success story of Good Governance of other companies….
  36. 36. Show the VALUE CREATION
  37. 37. Create transparency in your dealing
  38. 38. Follow good governed Board practices
  39. 39. Compliance of Law in LETTER AND SPIRIT</li></li></ul><li>Role of ICSI<br />ICSI has taken the responsibility to develop the concept of Corporate Governance.<br />“ Corporate Governance is the application of best management practices, compliance of law in true letter and spiritandadherence to ethical standards for effective management and distribution of wealth and discharge of social responsibilityforsustainable development of all stakeholders.”<br />-The Institute of Companies Secretaries of India<br />
  40. 40. ICSI efforts for CG<br />Vision & Mission<br />Vision- “To be global leader in development of professionals specializing in corporate governance&quot; <br />Mission-&quot;To continuously develop high caliber professionals ensuring good corporate governance and effective management and carry out proactive research and development activities, for protection of interest of all stakeholders, thus contributing to public good“<br />
  41. 41. ICSI efforts for CG<br />Award for Corporate Governance<br />Post – Membership course in Corporate Governance<br />Revision of course curriculum. <br />Increasing number of programmes & Seminars<br />Representations before International Regulatory Authorities for recognition of CS as a Professional for ensuring Corporate Governance<br />
  42. 42. Future Endeavors <br />Secretarial Standards on Corporate Governance<br />Guidance note on Corporate Governance Practices<br />Branding of CS ascertained with Corporate Governance<br />Industry & Corporate Tie-ups<br />
  43. 43. Corporate Governance is not about just doing the compliances. <br />CG is about Managingthe Compliances.<br />“Managing Compliances is different from Just doingcompliances”<br />
  44. 44. Corporate Compliance Management (CCM)<br />Another Emerging opportunity in Emerging Scenario<br />
  45. 45. Corporate Compliance Management<br />Corporate Compliance Management <br />is nothing but the<br />Opportunity <br />Lying in <br />‘Compliance of All applicable laws’<br />
  46. 46. Present Status of Compliance Services<br />
  47. 47. Implementation of Compliance Services with<br />Corporate Compliance Management<br />The Five step process …<br />Step I : Understanding the Company<br />Step II : Identification <br />Step III : Evaluation <br />Step IV : Assessment <br />Step V : Compliance Structure<br />
  48. 48. Step I : Understanding The Company <br /><ul><li>Company’s History & Background
  49. 49. Capital Structure & Evolution
  50. 50. Promoters & Group Companies
  51. 51. Management & Administration buildup
  52. 52. Financial Soundness & Debt Structure
  53. 53. Risk Management & Protection
  54. 54. Licenses & Approvals </li></li></ul><li>Step II : Identification Process <br />
  55. 55. General application of Laws<br />
  56. 56. Sectoral application of Laws<br />
  57. 57. Tourism And Hotel<br />Capital Market And <br />Its Intermediaries<br />Financial Services<br />Textiles<br />Banking And NBFC<br />IT Enabled <br />Services And BPO<br />Drugs, Pharma<br />And Healthcare<br />IT Solutions<br />Capital Goods <br />Infrastructure, <br />Power And Telecom<br />Agriculture And<br />Food Processing <br />Media And <br />Entertainment <br />Engineering and <br />Construction<br />FMCG <br />Industry/ Segment wise application of Laws<br />
  58. 58. Global Operations<br />Indian Operations<br />Geographical application of Laws<br />
  59. 59. Step III – Evaluation of Compliance Timings<br />
  60. 60. Step IV - Assessment<br />Identify the gap between the present compliance system and the results of evaluation process<br />
  61. 61. Step V : Creation Of Compliance Structure<br /><ul><li>Establishing Controls & Standard
  62. 62. Delegation of Responsibility
  63. 63. Analysis & Assessment
  64. 64. Compliance Reporting</li></li></ul><li>Compliance Management Tools<br />Checklists<br />Due Diligence<br />Softwares<br />Data banks<br />Research & Updations<br />
  65. 65. Case Study<br />CCM in Corporates<br />
  66. 66. Explaining the Process <br />Understanding The Company <br />CEMENT INDUSTRY<br /><ul><li>Public Limited Company
  67. 67. Listed Company – BSE, NSE
  68. 68. Manufacturing & Trading
  69. 69. Exporting Company
  70. 70. 10,000 No. of Employees (Approx.)
  71. 71. Units Located at Bhubaneswar, Rajnagpur </li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of General Corporate Information – Public Company, Listed at BSE, NSE<br /><ul><li>Companies Act, 1956
  72. 72. Income Tax Act, 1961
  73. 73. SEBI (Insider Trading) Regulations, 1992
  74. 74. SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997
  75. 75. Listing Agreement</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of Sector – Manufacturing and Trading<br /><ul><li>National Environment Policy
  76. 76. Environment (Prevention of pollution control) Act, 1986
  77. 77. Central Excise Act</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of Type of Industry – Cement <br /><ul><li>Cement (Quality Control) Order, 2003
  78. 78. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
  79. 79. Mines and Minerals (Development and Regulation) Act, 1957
  80. 80. Mineral Conservation and Development Rules, 1988
  81. 81. Metalliferous Mine Regulations, 1961.
  82. 82. Explosives Act, 1884</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of No. of Employees <br /><ul><li>Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
  83. 83. Factories Act, 1948
  84. 84. Payment of Gratuity Act, 1972
  85. 85. Industrial Dispute Act, 1947
  86. 86. Employees State Insurance Act, 1948
  87. 87. Payment of Wages Act, 1936
  88. 88. Minimum Wages Act, 1948 & Minimum Wages (Central) Rules, 1950</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of Activities – Exporters, Deals in foreign Exchange<br /><ul><li>FEMA, 1999
  89. 89. Foreign Trade Policy
  90. 90. Customs Act</li></li></ul><li>Identification of Applicable Laws<br />Explaining the Process <br />On the basis of location<br /><ul><li>Shops and Commercial Establishments Act
  91. 91. Value Added Tax
  92. 92. Labour Laws</li></li></ul><li>Role of ICSI<br /><ul><li>To initiate more Programmes and Workshops
  93. 93. To increase the Horizon of Institute
  94. 94. To increase the strength of Members
  95. 95. Focus on other Laws
  96. 96. Get a good brand – CORPORATE COMPLIANCE MANAGEMENT</li></li></ul><li>Thus, Opportunities are Unlimited …<br />
  97. 97. Its just a matter of <br />Creativity, Confidenceand Communication …<br />
  98. 98. …and also PerceptionandPositive Thinking<br />
  99. 99. So now, we need to prepare ourselves to create niche in the emerging scenario …<br />
  100. 100. Globalization Brings Opportunities<br />
  101. 101. Globalization - Pessimist Perception<br />Threat<br />Threat<br />Threat<br />Threat<br />Threat of Invasion of Service Sector by Foreign Giants<br />
  102. 102. Globalization -Optimist Perception<br />Opportunity<br />Opportunity<br />Opportunity<br />Opportunity<br />
  103. 103. But merely optimism will not do <br />optimism with Confidence & Right Attitude will …<br />
  104. 104. The emerging scenario requires us to reinvent everything - to think of ourselves as compared to others …<br />
  105. 105. Go IT …<br />“Adopt technology to defeat technology”<br />is the latest survival mantra ….<br />
  106. 106. Go IT …<br />Reduce time consumption in repetitive tasks.<br />Devote more time on Strategic analysis, value additions and planning.<br />Use on-line regulatory services.<br />Make use of exhaustive databases, checklists, research papers available online.<br />Manage multiple tasks through IT.<br />Use IT to shorten procedure and shift to STRATEGIES and PLANNING.<br />
  107. 107. To become <br />A Strategic Manager<br />& <br />A Corporate Planner<br />
  108. 108. Learn<br />The 80:20 Theory<br />
  109. 109. 20%<br />Strategy<br />Management<br />80%<br />Research<br />Filing forms & Applications<br />Registers & Returns<br />Checklists<br />Focus on Procedural Compliances<br />Present Focus of Services<br />
  110. 110. 80%<br />Strategy<br />Management<br />20%<br />Research<br />Filing forms & Applications<br />Registers & Returns<br />Checklists<br />Focus of services in emerging Scenario<br />Focus on Strategical Planning<br />
  111. 111. See the Horizon Beyond Company Law<br />Its time to go beyond the pre-defined framework.<br />Always say ‘YES’, its my area of work<br />
  112. 112. “Jumping at several small opportunities may get us there more quickly than waiting for one big one to come along.”<br />
  113. 113. Move with a Direction<br />Services Provided by an Ordinary PCS<br />Move with a new Direction<br />No Direction<br />Piecemeal services <br />
  114. 114. Single Window interface call for Synergy of <br />Brand<br /> Knowledge<br /> Capital<br /> Infrastructure<br />Collaboration is the buzz word …<br />
  115. 115. Corporate<br />Laws<br />Economic<br />Laws<br />Taxation<br />Laws<br />WTO & IPR<br />International<br />Trade Law<br />IT & BPO<br />Management<br />Consulting<br />Finance and <br />Accounting<br />Brand<br />Synergy<br />Quality<br /> of <br />Service<br />Growing Revenues<br />Knowledge<br />Synergy<br />Single<br />Window<br />Interface<br />Growing Customers<br />Infrastructure<br />Synergy<br />Global<br />Presence<br />Capital<br />Synergy<br />Growing Nations<br />Commerce<br />CS + CA + CWA + MBA + LLB<br />Collaborative Commerce<br />
  116. 116. “Problems becomes opportunities,<br /> when right people come together …”<br />
  117. 117. Advantages Collaborative Commerce<br />Enhanced Capability to compete with Global giants<br />Global Reach<br />Brand leverage<br />Wider Area of Expertise<br />Risk Minimization<br />Active Networking and Public Relations<br />Attraction of best talent<br />
  118. 118. &quot;We do not have to become heroes overnight…<br /> Just a step at a time, meeting each thing that comes up, seeing it is not as dreadful as it appeared, discovering we have the strength to stare it down.&quot; <br />
  119. 119. Quality Brand Building<br />
  120. 120. Opportunities have knocked your door …<br />
  121. 121. But still …<br />
  122. 122. You have to get off from your seat and open the door….”<br />
  123. 123.
  124. 124. … and if Opportunity does not knock your door….”<br />
  125. 125. build the door….”<br />
  126. 126. Thank You …<br />PAVAN KUMAR VIJAY, <br />Managing Director<br />

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