Corporate Compliance Management

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  • and
    Enhanced Trust and Confidence of all Stakeholders
    INVESTORS
    EMPLOYEES
    CUSTOMERS
    SUPPLIERS
    GOVERNMENT AND REGULATORS, and
    SOCIETY at large
  • Companies get Widespread Goodwill and Brand Reputation, resulting into
    Widening Customer Base
    Ready Market for New Products
    Access to Global Markets, and
    Better Access to Human Capital
  • The first advantage is GROWTH
    Growing Revenues
    Growing Profits
    Growing Market Value
  • Growing Investors
    Winning Employees
    Delighted Customers
    Trusted Suppliers
    Satisfied Government And Regulators
    Happy Society
    That is Excellence, which everyone aspires for
    and that leads to National Growth
  • Corporate Compliance Management

    1. 1. CORPORATE COMPLIANCE MANAGEMENT Mr. Pavan Kumar Vijay, Past President, ICSI, Managing Director “Exploring New vistas”
    2. 2. As just another burdensome, complicated , back office operations, monotonous work? OR A tool to create VALUE for the organization ? Do we consider Corporate Compliances
    3. 3. Value Creation of Enterprise through Corporate Compliance
    4. 4. Enhanced Trust and Confidence of all Stakeholders EmployeesEmployees InvestorsInvestors CustomersCustomers SuppliersSuppliers Government and Regulators Government and Regulators SocietySociety
    5. 5. Widespread Goodwill and Brand Reputation Access to Global Markets Lesser chances of Investigations Ready Market for New Products Widening Customer Base
    6. 6. Growth Growing Revenues Growing Profits Growing Market Value
    7. 7. • Loss of Investors Confidence • Difficulty in further raising of capital • Investor Complaints • Loss of reputation in National & International Markets
    8. 8. 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
    9. 9. ..…Only the culture of strict adherence to good compliance can keep a company ahead on sustainable basis , bring in larger profits…
    10. 10. Complaint Received Complaint Resolved Pending 430 360 70 Details of complaints resolved during the financial year 2007-08 are as follows.
    11. 11. 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
    12. 12. Designing effective & user friendly COMPLIANCE MANAGEMENT SYSTEM to lay down strong foundation for GOOD GOVERNED COMPANY
    13. 13. IMPLEMENTING EFFECTIVE COMPLIANCE MANAGEMENT SYSTEM
    14. 14. 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.”
    15. 15. 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
    16. 16. ROLE OF COMPANY SECRETARY in COMPLIANCE MANAGEMENT
    17. 17. Company Secretary is primarily responsible to coordinate with COMPLIANCE OF ALL LAWS Therefore, WE ARE ANSWERABLE……
    18. 18. Time has come……. Corporate compliance is not merely a legal compliance but it is a NECESSITY AND VALUE CREATION Now …………
    19. 19. THE FIVE STEP PROCESS
    20. 20. 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
    21. 21. Global Operations Indian Operations
    22. 22. Identify the gap between the present compliance system and the results of Evaluation Process
    23. 23.  Establishing Controls & Standard  Delegation of Responsibility  Analysis & Assessment  Compliance Reporting
    24. 24. 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…
    25. 25. 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
    26. 26. 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
    27. 27. 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
    28. 28. 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
    29. 29. Activity Based Laws Applicable to Company On the basis of Activities •Foreign Trade Policy •Foreign Exchange Management Act, 1999 •Customs Act
    30. 30. Area Based Laws Applicable to Company On the basis of location •Punjab Labour Welfare Fund Act, 1965 •Punjab Shops and Commercial Establishments Act, 1958
    31. 31. Simplification: The Next Move Developing Compliance Management Tools
    32. 32. Unsystematic Compliance System… the aftermath
    33. 33. 80% 20% Filing forms & Applications Registers & Returns Checklists Good Compliance Risk Mitigation Corporate Governance Traditional Role Strategic Role
    34. 34. Let IT works for you………….
    35. 35. 20% 80% Filing forms & Applications Registers & Returns Checklists Good Compliance Risk Mitigation Corporate Governance Traditional Role Strategic Role
    36. 36. Easy Compliance Impossible Non- Compliance
    37. 37. 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…
    38. 38. MAKING YOUR COMPANY DIFFERENT & LEADING TOWARDS EXCELLENCE
    39. 39. HAPPY COMPANY HAPPY COMPANY HAPPY MANAGEMENT HAPPY MANAGEMENT HAPPY INVESTORS HAPPY INVESTORS HAPPY SUPPLIERS HAPPY SUPPLIERS HAPPY REGULATORS HAPPY REGULATORS HAPPY CUSTOMERS HAPPY CUSTOMERS
    40. 40. The Conclusion is ………. Make Your Company GOOD GOVERNED COMPANY

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