1. CORPORATE COMPLIANCE
MANAGEMENT
Mr. Pavan Kumar Vijay,
Past President, ICSI,
Managing Director
“Exploring New vistas”

3. As just another burdensome, complicated ,
back office operations, monotonous work?
OR
A tool to create VALUE for the
organization ?
Do we consider Corporate
Compliances

4. Value Creation of Enterprise through
Corporate Compliance

5. Enhanced Trust and
Confidence of all
Stakeholders
EmployeesEmployees
InvestorsInvestors CustomersCustomers
SuppliersSuppliers
Government
and Regulators
Government
and Regulators
SocietySociety

6. Widespread Goodwill and Brand Reputation
Access to Global
Markets
Lesser chances
of Investigations
Ready Market for
New Products
Widening
Customer Base

7. Growth
Growing
Revenues
Growing
Profits
Growing
Market Value

8. • Loss of Investors Confidence
• Difficulty in further raising of capital
• Investor Complaints
• Loss of reputation in National & International
Markets

9. Outstanding Performance,
Higher Profits,
Expanded Market Reach and the like
FAILS
to protect a company
which has put good governance & ethics
at the back burner….
S
U
C
E
S
S
D
I
S
A
S
T
E
R

10. ..…Only the culture of
strict adherence to good compliance
can keep a company
ahead on sustainable basis , bring in
larger profits…

12. Complaint
Received
Complaint
Resolved
Pending
430 360 70
Details of complaints resolved during
the financial year 2007-08 are as
follows.

13. EXAMPLE :– INVESTOR’S COMPLIANT MODEL
Reasons of
Complaints
Total
Complaint
s
Complaints Resolved Pending
Complaints
Reason for
Pendency0 – 7
Days
8 – 15
Days
16 – 21
Days
Non-receipt of
Bonus
145 67 32 16 30 Wrong
address
Legal Issues
Delay in
Dematerializatio
n
65 24 20 16 5 Wrong Folio
no.
Non-receipt of
dividend
130 62 28 15 25 Wrong
address
Court Cases
Non-receipt of
Notice
90 42 24 14 10 Undelivered
Wrong
address

15. Designing
effective & user friendly
COMPLIANCE MANAGEMENT SYSTEM
to lay down strong foundation for
GOOD GOVERNED COMPANY

16. IMPLEMENTING EFFECTIVE
COMPLIANCE MANAGEMENT SYSTEM

17. Clause 49 of Listing Agreement:
“ The Board shall periodically review compliance
reports of all laws applicable to the company,
prepared by the company as well as steps taken
by
the company to rectify instances of non-
compliances.”

19. COMPANY POLICIES
OPERATIONAL PLANNING AND EXECUTION
DIR A DIR B DIR C DIR D DIR E BOARD OF
DIRECTORS
CORPORATE
PLANNING
LEGAL
FINANCE AND
ACCOUNTS
HUMAN
RESOURCES
CORPORATE
COMMUNICATION
PRODUCTION
AND OPERATIONS
MARKETING
INFORMATION
TECHNOLOGY
DEPARTMENTS IN A COMPANY
EXTERNAL STAKEHOLDERSCompany Secretary
INVESTORS
INVESTORS
GOVERNMENT AND
REGULATORS
GOVERNMENT AND
REGULATORS
SOCIETY
SOCIETY
SUPPLIERS
SUPPLIERS
CUSTOMERS
CUSTOMERS
LENDERS
LENDERS

20. ROLE OF
COMPANY SECRETARY
in COMPLIANCE MANAGEMENT

21. Company Secretary is primarily responsible
to coordinate with
COMPLIANCE OF ALL LAWS
Therefore, WE ARE ANSWERABLE……

22. Time has come…….
Corporate compliance is not merely a
legal compliance but it is a
NECESSITY AND VALUE CREATION
Now …………

23. THE FIVE STEP PROCESS

28. Media And
Entertainment
Infrastructure,
Power And Telecom
IT Solutions
IT Enabled
Services And BPO
Textiles
Tourism And Hotel
Capital Market And
Its Intermediaries
Engineering and
Construction
FMCG
Agriculture And
Food Processing
Capital Goods
Drugs, Pharma
And Healthcare
Banking And NBFC
Financial Services

29. Global
Operations
Indian Operations

31. Identify the gap
between
the present compliance system
and
the results of Evaluation Process

32.  Establishing Controls & Standard
 Delegation of Responsibility
 Analysis & Assessment
 Compliance Reporting

34. ABOUT ABHISHEK INDUSTRIES LIMITED
• Public Limited Company
• Listed at – BSE, NSE
• Textile Industry
• Large Manufacturers
• Exporters
• Over 9000 No. of Employees
• Units Located at Barnala, Punjab
IDENTIFICATION, EVALUATION & ASSESSMENT AT ONE
PLACE…

35. General Laws Applicable to Company
ON THE BASIS OF GENERAL CORPORATE INFORMATION
•Companies Act, 1956
•Income Tax Act, 1961
•SEBI (Insider Trading) Regulations, 1992
•SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997
•Listing Agreement Regulations

36. Sector Specific Laws Applicable to Company
On the basis of Sector – Manufacturing and Trading
•National Environment Policy
•Environment (Prevention of pollution control) Act, 1986
•Central Excise Act
•Value Added Tax

37. Industry Specific Laws Applicable to Company
On the basis of Type of Industry
• National Textile Policy, 2000
• Textile Commodities Act, 1963
•Textiles(Development & Regulation )Order,2001
•Export Promotion Capital Goods (EPCG) Scheme
•Technology Up gradation Fund Scheme
•Scheme for Integrated Textile Parks
•Cotton Order ,1986

38. Industrial and Labour Laws Applicable to Company
On the basis of No. of Employees
• Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
•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

39. Activity Based Laws Applicable to Company
On the basis of Activities
•Foreign Trade Policy
•Foreign Exchange Management Act, 1999
•Customs Act

40. Area Based Laws Applicable to Company
On the basis of location
•Punjab Labour Welfare Fund Act, 1965
•Punjab Shops and Commercial Establishments Act, 1958

41. Simplification: The Next Move
Developing Compliance Management Tools

46. Unsystematic
Compliance
System… the aftermath

47. 80%
20%
Filing forms & Applications
Registers & Returns
Checklists
Good Compliance
Risk Mitigation
Corporate Governance
Traditional Role
Strategic Role

48. Let IT works for you………….

59. 20%
80%
Filing forms & Applications
Registers & Returns
Checklists
Good Compliance
Risk Mitigation
Corporate Governance
Traditional Role
Strategic Role

61. Easy Compliance
Impossible Non- Compliance

62. Company Secretary are like back bone
of any Compliance Management System
to any organisation and with its
Proactive Approach & Intelligence
make an organisation front runner in its field…

63. MAKING YOUR COMPANY DIFFERENT & LEADING TOWARDS
EXCELLENCE

64. HAPPY
COMPANY
HAPPY
COMPANY
HAPPY
MANAGEMENT
HAPPY
MANAGEMENT
HAPPY
INVESTORS
HAPPY
INVESTORS
HAPPY
SUPPLIERS
HAPPY
SUPPLIERS
HAPPY
REGULATORS
HAPPY
REGULATORS
HAPPY
CUSTOMERS
HAPPY
CUSTOMERS

65. The Conclusion is ……….
Make Your Company
GOOD GOVERNED COMPANY