Corporate Complience Management : A Risk Management


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Corporate Complience Management : A Risk Management

  1. 1. A RISK MANAGEMENT & RISK MINIMIZATION PACKAGE A Venture of ……. Compliance Corporate Management
  2. 2. <ul><li>Companies are governed by complex WEB OF LAWS , </li></ul><ul><li>Regulations, Voluntary Codes, Industry Codes and Corporate Policies </li></ul>CCM for Today’s Scenario,
  3. 3. Corporate Governance in System <ul><li>Clause 49 of Listing Agreement : </li></ul><ul><li>“ 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.” </li></ul>
  4. 4. <ul><li>COMPLIANCE is about protecting an organization’s License To Operate – lack of which introduces a substantial Financial and Operational risk to an organisation </li></ul>Compliance is……. COMPLIANCE MEANS OBEYING THE LAW
  5. 5. <ul><li>HOW </li></ul><ul><li>CCM TOOL </li></ul><ul><li>WILL HELP??? </li></ul>
  6. 6. Regulatory Acts CCM Companies Act MRTP Act (Competition Act) Industry Specific Law [Brokers Rules & Regulations ] FEMA SCRA SEBI Act Labour and Industrial Laws
  7. 7. We usually Confront with these?? I don’t know which laws are applicable How to make compliances on time? I am bored of Stereotyped Compliance system
  8. 8. <ul><li>can </li></ul><ul><li>Add Value to </li></ul><ul><li>Your Organisation ???? </li></ul>HOW
  9. 9. Can Add Value……..By <ul><li>Use of Compliance Tools, Checklist to identify & Manage Conformance Requirements . </li></ul><ul><li>Identification of the Non- Conformance which needs Remedial Action. </li></ul><ul><li>Defining, Tracking and Implementing Corrective Actions to address non conformance. </li></ul><ul><li>U se of Control Techniques </li></ul><ul><li>Providing Visibility into the entire process through Reporting and Dashboards . </li></ul>
  10. 10. <ul><li>Benefits </li></ul><ul><li>of </li></ul><ul><li>Compliance Management </li></ul>
  11. 11. <ul><li>Lay the foundation for controlled environment </li></ul><ul><li>Avoid stiff penalties </li></ul><ul><li>Enjoy Healthy Returns </li></ul>Companies that go extra mile with their compliance programs
  12. 12. <ul><li>And Therefore, </li></ul><ul><li>We had </li></ul><ul><li>Effective Compliance Program </li></ul>
  13. 13. Elements of Effective Compliance Program <ul><li>Customization of ….. </li></ul>LAWS RULES Regulations Circulars/ Notifications ECP At One Place
  15. 15. <ul><li>CORPORATE JANAMPATRI </li></ul>STEP I Understanding the Company
  16. 16. <ul><li>Company’s History & Background </li></ul><ul><li>Business Set up </li></ul><ul><li>Board of Directors </li></ul><ul><li>Capital Structure & Evolution </li></ul><ul><li>Management & Administration buildup </li></ul><ul><li>Financial & Debt Structure </li></ul>
  17. 17. STEP II <ul><li>IDENTIFICATION PROCESS </li></ul><ul><li>Laws Identified on the basis of Company’s basic info </li></ul>
  18. 18. <ul><li>General application of laws </li></ul><ul><li>Sectoral applications </li></ul><ul><li>Industry / Segment applications </li></ul><ul><li>Geographical applications </li></ul><ul><li>Number of Employees </li></ul><ul><li>Transaction applications </li></ul>Applicable laws
  19. 19. Identification of applicable laws <ul><li>General Laws </li></ul><ul><li>Companies Act, 1956 </li></ul><ul><li>Income Tax Act, 1961 </li></ul><ul><li>Area Specific </li></ul><ul><li>Shops & Establishment Acts </li></ul><ul><li>Stamp Act </li></ul><ul><li>Industry Specific </li></ul><ul><li>SEBI (Stock Brokers & Sub Brokers) Regulations </li></ul><ul><li>NSE/BSE Bye Laws </li></ul><ul><li>International Transaction </li></ul><ul><li>FEMA , 1999 </li></ul><ul><li>No of Employees </li></ul><ul><li>Payment of Wages Act, 1936 </li></ul><ul><li>Contract Labour (regulation & abolition) act, 1970 </li></ul>Securities Laws Listing Agreement DIP Guidelines
  20. 20. STEP III <ul><li>QUESTIONNAIRE </li></ul><ul><li>For event based laws </li></ul>
  21. 21. <ul><li>As for instance: </li></ul><ul><li>A Company has its operations of exports which further Involve lots of foreign exchange transactions. </li></ul>
  22. 22. STEP IV <ul><li>EVALUATION </li></ul><ul><li>PROCESS </li></ul><ul><li>Event based Laws </li></ul>
  23. 23. Evaluation: Preparation at home Evaluating the applicable laws after due identification process Identification: FEMA, 1999 Evaluation : FEM ( Exports of goods & services) Regulations, 1999
  24. 24. Exhaustive Check-list with compliance calendar for all applicable laws under four heads: <ul><ul><li>Registration & Licensing Requirements; </li></ul></ul><ul><ul><li>Regular Compliances; </li></ul></ul><ul><ul><li>Event based Compliances; and </li></ul></ul><ul><ul><li>Requirements of Maintenance of Registers & Records; </li></ul></ul>
  25. 25. Compliance Timings: Evaluation Compliance Timings Fixed / Regular Event Based
  26. 26. Industry specific compliances <ul><li>Special for Broking Companies </li></ul><ul><li>Customization of Package keeping in view the Industry in which the company is working e.g. Broking Company </li></ul><ul><li>Inclusion of Specific Checklist to be considered </li></ul><ul><ul><li>Daily – Margin requirement; Issuance of Contract Notes </li></ul></ul><ul><ul><li>Monthly, Quarterly, Yearly Returns </li></ul></ul><ul><ul><li>Event based- client Account opening </li></ul></ul><ul><li>Tracking of unintentional non-compliances on daily basis and suggestive remedial actions; </li></ul>
  27. 27. Still Worried
  28. 28. <ul><li>How To Keep Records of large no. of Compliances? </li></ul><ul><li>How to Remember about the Compliance dates numerous laws? </li></ul><ul><li>Whether any other Law is applicable? </li></ul><ul><li>What will be the Consequences ? </li></ul><ul><li>What Recourse is available to me? </li></ul>
  29. 29. <ul><li>Solution for rest of your problems </li></ul><ul><li>“ PRODUCTS” </li></ul><ul><li>of </li></ul><ul><li>CCM TOOL </li></ul><ul><li> </li></ul><ul><li>A 100%secured web-based solution </li></ul>
  30. 30. Compliance Checklist
  31. 31. Compliance Scheduler File Form1
  32. 32. Timely Alerts and Reminders <ul><ul><ul><li>M ails & </li></ul></ul></ul><ul><ul><ul><li>M essages </li></ul></ul></ul>Reminders File form ITR 6 under Income Tax Act on or before 31st October
  33. 33. Reminders
  34. 34. Forms Library Download
  35. 35. Compliance Report <ul><li>REAL-TIME BASIS </li></ul><ul><li>Pending Non </li></ul><ul><li>Compliances Compliances </li></ul>&
  36. 36. Compliance Report
  37. 37. Compliance Health Check <ul><li>Compliance Statistics </li></ul><ul><li>P ie Charts </li></ul><ul><li>B ar Diagrams </li></ul>
  38. 38. Compliance Statistics
  39. 39. Risk Analysis High Risk Moderate Risk Low Risk Penalty Risk Classification Significance Type Probability I year prosecution High Urgent Medium Fine of Rs. 1,000 Low Avoid Low
  40. 40. Risk Reporting
  41. 41. Online Support <ul><li>Query Box </li></ul><ul><li>Get an Opinion </li></ul><ul><li>Interpretation of Applicable Laws </li></ul>
  42. 42. Query Box
  43. 43. Opinion Box
  44. 44. Striking Feature of <ul><li>Coverage of more than 200 Act, Rules, Regulations, Guidelines, Circulars & Notifications effecting the compliance requirement of a Company </li></ul><ul><li>Covers all Industry Specific & Location based laws </li></ul><ul><li>Real Time updation by Expert Professionals located all over India </li></ul><ul><li>Customization of Checklist according to the applicable laws to your Company </li></ul>
  45. 45. Feature of …Cont. <ul><li>Rights/option to create a complete system of compliance managemen t </li></ul><ul><ul><li>Creation of Different Users to comply with different laws </li></ul></ul><ul><ul><li>Fixation of dead lines for compliance by each user </li></ul></ul><ul><li>Creation of Three Tier Hierarchy for compliance Reporting System </li></ul><ul><li>Alerts at different levels as the last date of compliance comes closure </li></ul><ul><li>Alerts & Reminders by way of mails & messages </li></ul>
  46. 46. Feature of …Cont. <ul><li>Online support in the form of Query Box </li></ul><ul><li>Facility of getting Opinion on any of the Topic of Compliance from Eminent Professionals of the field on our panel </li></ul><ul><li>Discussion Forum & Archive of Topic-wise Discussions </li></ul><ul><li>Library of Forms of all laws covered </li></ul>
  47. 47. Feature of …Cont. <ul><li>Reporting of Compliance & Non-Compliance </li></ul><ul><ul><li>On Real-time Basis </li></ul></ul><ul><ul><li>On Quarterly Basis </li></ul></ul><ul><ul><li>Archive of Quarterly Compliance Reports </li></ul></ul><ul><li>Risk Assessment of Non-Compliances </li></ul><ul><ul><li>Reporting of Consequences segregated in High, Medium & Low financial & Other Risks </li></ul></ul>
  48. 48. <ul><li>M aximize the value of Company’s compliance efforts to shorten cycle times, </li></ul><ul><li>R educe cost, </li></ul><ul><li>I mprove overall business performance. </li></ul>Risk and Rewards of Compliance
  49. 49. <ul><li>Forward-thinking companies understand that it is an opportunity to enable truly </li></ul><ul><li>improved business efficiency </li></ul>Turning Obligation into Opportunity
  50. 50. <ul><li>A Solution for Today and Beyond…… </li></ul>C orporate C ompliance M anagement
  51. 51. Corporate Professionals (India) Pvt. Ltd. D-28, South Extn. Part-I, New Delhi 110049 Tel: +91.11.40622200, Fax: +91.11.40622201 Kavita: 9818587794; Manoj: 9910688433 Email: [email_address] Visit us at: For further information Please contact… Thanks a lot…