Information Technology & Company Secretary


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Information Technology & Company Secretary

  1. 1. <ul><li>Information Technology </li></ul><ul><li>& </li></ul><ul><li>Company Secretary </li></ul>CS @ IT ---------------------------------------------------
  3. 3. [email_address] <ul><li>Why IT </li></ul><ul><li>e-governance </li></ul><ul><li>Challenges for CS </li></ul><ul><li>e - transformation </li></ul><ul><li>Opportunities for CS </li></ul>
  4. 4. Digital Signature Certificate <ul><li>About DSC </li></ul><ul><li>How to apply </li></ul><ul><li>Usages of DSC </li></ul><ul><li>Encreption & decreption </li></ul><ul><li>Future need of DSC </li></ul><ul><li>Protection of DSC </li></ul>
  5. 5. WHY IT
  6. 6. <ul><ul><ul><ul><ul><li>IT Facilitate -GLOBALIZATION </li></ul></ul></ul></ul></ul><ul><li>Telecommunications Advancement </li></ul>Transportation Facilities Information Technology & Knowledge Sharing Transparency & Good Governance
  7. 7. INTERNET
  8. 8. Which enables
  10. 10. IT is Changing the Way Business is Done
  11. 11. E-Governance <ul><li>Electronic Governance is the application of IT to the processes of Government functioning to bring about SMART Governance for better: </li></ul><ul><ul><li>Speed/ efficiency </li></ul></ul><ul><ul><li>Measurement of Performance </li></ul></ul><ul><ul><li>Accessibility </li></ul></ul><ul><ul><li>Reliability (certainty) </li></ul></ul><ul><ul><li>Transparency </li></ul></ul><ul><ul><li>new ways to increase citizen participation in the democratic process. </li></ul></ul>
  12. 12. <ul><li>500 implementation </li></ul><ul><li>agencies </li></ul><ul><li>2 lakh sites </li></ul><ul><li>70,000 man-years </li></ul><ul><li>of effort </li></ul><ul><li>20 GOI Deptts </li></ul><ul><li>35 States / UTs </li></ul><ul><li>360 Deptts @ States </li></ul>National e-Governance Projects Land Records Road Transport Police Land Regn Treasuries Comrl Taxes Agriculture Gram Pts Munici palities Employment Exchanges Civil Supplies Education Income Tax Passport Visa MCA21 Insurance Banking National ID Central Excise Pensions GIS e-Posts Common Service Centres Gateway e-Procure e-Office eBiz EDI e-Courts India Portal Core Policies
  13. 13. NEGP –Mission Mode Projects (MMPs) <ul><li>Integrated </li></ul><ul><li>e-BIZ </li></ul><ul><li>EDI </li></ul><ul><li>India Portal </li></ul><ul><li>Common df </li></ul><ul><li>EG Gateway </li></ul><ul><li>E Courts </li></ul><ul><li>E-Office </li></ul><ul><li>E Procurement </li></ul><ul><li>State </li></ul><ul><li>Agriculture </li></ul><ul><li>Land Records </li></ul><ul><li>Transport </li></ul><ul><li>Treasuries </li></ul><ul><li>Commercial Taxes </li></ul><ul><li>Gram Panchayats </li></ul><ul><li>Municipalities </li></ul><ul><li>Registration </li></ul><ul><li>Police </li></ul><ul><li>Employment Exchange </li></ul><ul><li>Central </li></ul><ul><li>Income Tax </li></ul><ul><li>Central Excise </li></ul><ul><li>Passports/Visa & Immigration </li></ul><ul><li>MCA 21 </li></ul><ul><li>National ID </li></ul><ul><li>Pensions </li></ul><ul><li>Industry Initiative </li></ul><ul><li>Banking </li></ul><ul><li>Insurance </li></ul>
  14. 14. IT for Company Secretaries
  15. 15. An Ordinary Company Secretary I Don't Have Time 80% 20% Notices Agenda Minutes Registers Returns Checklists Strategy Research Representation Problem Solving Management Coordination
  17. 17. IT requirement for CS <ul><li>MCA-21, </li></ul><ul><li>EDIFAR, </li></ul><ul><li>MIS (Management Information System) </li></ul><ul><li>Software's Like CO-SECY/ERP </li></ul><ul><li>Online Secretarial Audit </li></ul><ul><li>e-INCORPORATION </li></ul><ul><li>e-SEARCH </li></ul>
  18. 18. BY CLICK OF A BUTTON YOU CAN OBTAIN WORLD FULL OF INFORMATION <ul><li>Event Based Checklists </li></ul><ul><li>Fee & Tax Calculators </li></ul><ul><li>Draft Agenda, Notices & Minutes </li></ul><ul><li>Latest News & Updates </li></ul><ul><li>Circulars & Notifications </li></ul><ul><li>On Line Consultation </li></ul><ul><li>& Much More …. </li></ul><ul><li>Case Laws & Judgments </li></ul><ul><li>Bare Acts & Commentaries </li></ul>Virtual office of CS <ul><li>Compliances Calendar </li></ul>
  19. 19. IT Enabled Company Secretary Give Me More Work IT is a Powerful Tool for Company Secretaries 20% 80% Notices Agenda Minutes Registers Returns Checklists Strategy Research Representation Problem Solving Management MIS
  20. 20. <ul><li>ẻ Recording & Filing </li></ul><ul><li>ẻ Dividend </li></ul><ul><li>ẻ Audit </li></ul><ul><li>ẻ Governance </li></ul><ul><li>ẻ Library </li></ul><ul><li>ẻ Learning </li></ul><ul><li>Meetings Through Video Conferencing </li></ul><ul><li>Digital Signatures </li></ul><ul><li>ẻ IPO </li></ul><ul><li>ẻ Groups </li></ul>And Much More …. ẻ TRANSFORMATION OF TRADITIONAL MECHANISMS
  21. 21. Opportunities in IT <ul><li>ONLINE CONSULTANCY </li></ul><ul><li>SYSTEM AUDITS </li></ul><ul><li>ONLINE VERIFICATION & SUBMISSION OF FORMS/ RETURNS </li></ul><ul><li>ONLINE BACK OFFICE MAINTENANCE </li></ul><ul><li>LEGAL SOFTWARE'S DEVELOPMENT & MARKETING </li></ul><ul><li>MULTINATIONAL MEGA FIRMS </li></ul><ul><li>KNOWLEDGE PROCESS OUTSOURCING, (KPO) </li></ul>
  22. 22. KNOWLEDGE MANAGEMENT <ul><li>WWW . SEC297 .COM </li></ul><ul><li>WWW. SEC372 . COM </li></ul><ul><li>WWW. SEC58A .COM </li></ul><ul><li>WWW. BUYBACK .COM </li></ul><ul><li>WWW. TAKEOVER .COM </li></ul><ul><li>WWW . IPOS .COM </li></ul><ul><li>WWW . TRADEMARKHELP .COM </li></ul><ul><li>WWW. USGAAP .COM </li></ul>
  23. 23. IT is a Powerful Tool for Company Secretaries Using IT is a Win Win Proposition <ul><li>Conforming to the requirements </li></ul><ul><li>Dependable and reliable </li></ul><ul><li>Available when needed </li></ul><ul><li>Maintainable </li></ul><ul><li>Better working conditions </li></ul><ul><li>Increased job satisfaction </li></ul><ul><li>Improved health and safety </li></ul><ul><li>Improved morale </li></ul><ul><li>Improved stability of employment </li></ul><ul><li>Increased return on investment </li></ul><ul><li>Improved operational results </li></ul><ul><li>Increased market share </li></ul><ul><li>Increased profits </li></ul><ul><li>Stability </li></ul><ul><li>Growth </li></ul><ul><li>Partnership and mutual understanding </li></ul><ul><li>Taking Company Secretaries to the World </li></ul><ul><li>Increased confidence of people in profession </li></ul><ul><li>Enhanced reputation of fellow professionals </li></ul><ul><li>Fulfillment of legal requirements </li></ul><ul><li>Reduction in wastage of natural resources </li></ul><ul><li>Increased security </li></ul>Customers Partners Profession Network Partners Employees Society
  24. 24. IT Can Help You IT is a Powerful Tool for Company Secretaries Save lot of time
  25. 25. IT Can Help You IT is a Powerful Tool for Company Secretaries Make Better Decisions
  26. 26. IT Can Help You IT is a Powerful Tool for Company Secretaries Coordinate diverse functions effectively
  27. 27. IT Can Help You IT is a Powerful Tool for Company Secretaries Be On Time, Everytime
  28. 28. IT is a Powerful Tool for Company Secretaries Its YOU Who Have to Use IT
  29. 29. So What is required
  30. 30. <ul><li>Change in Attitude </li></ul><ul><li>Ability to adapt to changes </li></ul><ul><li>Innovation & Creativity </li></ul><ul><li>Desire to Learn </li></ul>
  31. 31. IT driven project <ul><li>MCA-21 </li></ul><ul><li>(A mammoth project of Ministry of Company affairs) </li></ul><ul><li>(A public private partnership project) </li></ul>
  32. 32. Paper Based Operations Paper Less Environment From To Paradigm Transformation In the operations of ROC
  33. 33. Assures
  34. 34. Speed , Transparency and Efficiency in delivery of the services by Ministry of Company Affairs (MCA)
  35. 36. <ul><li>Business : easy registration and compliances </li></ul><ul><li>Directors : convenience of signing and submission </li></ul><ul><li>Public : easy access to company records </li></ul><ul><li>Professionals : efficiency in services </li></ul><ul><li>Lenders : easy registration and search of charge </li></ul><ul><li>Government : proactive and effective compliance </li></ul><ul><li>MCA Employees: delivery of best services </li></ul>Stakeholder interest
  36. 37. e-Incorporation e-Filings Online Registration and verification of charges Inspection of documents Timely redressal of investor grievance More time to MCA for qualitative analysis Benefits
  37. 38. Basic requirement under MCA-21 <ul><li>Registration with MCA portal </li></ul><ul><li>CIN-Company Identification No. </li></ul><ul><li>DIN-Director Identification No. </li></ul><ul><li>DSC- Digital Signature Certificate </li></ul><ul><li>Others </li></ul><ul><li>GLN-Global Location No. </li></ul>
  38. 39. What is CIN <ul><li>CIN is a 21 digit number allotted to all the companies registered in India by the Registrar of Companies.   </li></ul>
  39. 40. U 45201 DL 2006 PTC 012121 U45201DL2006PTC12121 This signifies whether co. is Listed (L) or Unlisted (U) This 5 code signifies the business activity of the company This signifies the state in which Co. situates – DL for DELHI This signifies year of registration of company This signifies status of company, Pub/ Pvt - PTC for Private This is registration no. of Company
  40. 41. DIN <ul><li>DIRECTORS IDENTIFICATION NUMBER </li></ul>
  41. 42. Legal Validity <ul><li>The concept of a DIN has been introduced for the first time with the insertion of Sec 266A to 266G of Companies (Amendment) Act, 2006. As such, all the existing and intending Directors have to obtain DIN within the prescribed time-frame as notified. </li></ul>
  42. 43. <ul><li>Sec 266 A – Application for DIN </li></ul><ul><li>Sec 266 C – Prohibition to obtain more than one DIN </li></ul><ul><li>Sec 266 D – Obligation of Director to intimate company about DIN </li></ul><ul><li>Sec 266 E - Obligation of Company to intimate RoC about DIN </li></ul><ul><li>Sec 266 G – Penalty for contravention </li></ul>
  43. 44. DIN DIFFERENT FORMS And change in DIN 1 information DIN 4 Companies to inform ROC within 7 days of the information received DIN 3 Directors to inform Companies within a period of 1 month of allotment of the DIN. DIN 2 Application Form For DIN with in 60 days DIN 1
  44. 45. FEES for DIN <ul><li>DIN 1 – Rs. 100 after 31 st December </li></ul><ul><li>DIN 2 – No fee </li></ul><ul><li>DIN 3 – As per schedule X of Companies Act after 31 st March 2007 </li></ul><ul><li>DIN 4 – No fee </li></ul>
  45. 46. Penalties for non compliance <ul><li>Fine may extend to Rs. 5000/- </li></ul><ul><li>And further fine may extend to 500/- for every day . </li></ul>
  47. 48. Information Technology Act 2000 <ul><li>Creating Trust </li></ul><ul><li>in </li></ul><ul><li>Electronic Environment </li></ul>
  48. 49. Information Technology Act <ul><li>IT Act 2000 : Basic legal framework for E-Commerce - promotes trust in electronic environment </li></ul><ul><li>IT Act creates a conducive environment for promoting E-Commerce in the country. </li></ul><ul><ul><li>Acceptance of electronic documents as evidence in a court of law. </li></ul></ul><ul><ul><li>Acceptance of electronic signatures at par with handwritten signatures. </li></ul></ul>
  49. 50. Information Technology Act ...contd. <ul><ul><li>Acceptance of electronic documents by the government. </li></ul></ul><ul><ul><li>Defines digital signatures based on asymmetric public key cryptography </li></ul></ul><ul><ul><li>Provides for the creation of Certifying Authorities to issue public key certificates – digital certificates for electronic authentication of users in electronic commerce. </li></ul></ul>
  50. 51. <ul><ul><li>Provides for Controller under the IT Act to license the Certifying Authorities and to ensure that none of the provisions of the Act are violated. </li></ul></ul><ul><ul><li>Provides for dealing with offences in the cyber space in the form of hackers and other criminals trying to gain access into databases and other business sites. </li></ul></ul><ul><ul><li>Provides for the establishment of Cyber Appellate Tribunal to try cases under this Act for speedy adjudication of cases arising out of this Act. </li></ul></ul><ul><ul><li>Provides for appropriate changes in the Bankers Act and the Indian Evidence Act. </li></ul></ul>Information Technology Act ...contd.
  51. 54. <ul><li>Why </li></ul><ul><li>Digital Signatures </li></ul>
  52. 55. Security of document requires <ul><li>Authenticity </li></ul><ul><li>Confidentiality </li></ul><ul><li>Integrity </li></ul><ul><li>Non-repudiation </li></ul>
  53. 56. Solutions Offered Privacy & Confidentiality Integrity Non-Repudiation Authenticity Physical World Notaries, Physical Presence, Photo ID card Signatures, Barcodes, Watermarks, Sealed letter Notarized signature, Receipts &Confirmations Envelopes Electronic World Digital Signature Digital Signature Digital Signature Encryption
  55. 58. An electronic signature duly issued by the certifying authority that shows the authenticity of the person who is signing the e- form.
  56. 59. What does DSC contain and how it looks like
  57. 62. DSC contains <ul><li>Owner name, company and address </li></ul><ul><li>Owner public key </li></ul><ul><li>Owner certificate serial key </li></ul><ul><li>Owner validity dates </li></ul><ul><li>Certifying authority public key </li></ul><ul><li>Root certificate of controller of CA </li></ul>
  58. 63. Types of DSC Class 1 Class 2 Class 3 Validity of DSC 1 year 2 years
  59. 64. Issuing Authority for DSC
  60. 66. Digital Signatures under MCA-21
  61. 67. Required for <ul><li>Signing of e-forms </li></ul><ul><li>Secure login </li></ul>
  62. 68. Required to <ul><li>Directors </li></ul><ul><li>Company Secretary </li></ul><ul><li>Manager </li></ul><ul><li>Authorised Signatory </li></ul><ul><li>Professionals </li></ul><ul><li>(CA/CS/CWA/Advocate) </li></ul>
  63. 69. DSC can be obtained <ul><li>Personal capacity </li></ul><ul><ul><li>Individual User </li></ul></ul><ul><li>Representative capacity </li></ul><ul><ul><li>Company User </li></ul></ul>
  64. 70. Individual User It can be used for any purpose and in any designation DSC as Individual User Director of any company Manager of any company Authorized representative of any company CS of any company Auditor of any company
  65. 71. Company User <ul><li>DSC can be used in single designation and </li></ul><ul><li>for a single organization only. </li></ul>DSC in the name of Mr. X as a partner of ABC & Associates DSC can be used only by Mr. X as a partner of ABC & Associates e.g.
  66. 72. How to obtain your DSC
  67. 73. Follow following steps: <ul><li>Register yourself </li></ul><ul><li>Online enrollment request </li></ul><ul><li>Physical application with annexure </li></ul><ul><li>Downloading of DSC </li></ul>
  68. 74. Register Your-self
  69. 76. Online enrollment form
  70. 79. <ul><li>Submission of physical application </li></ul>
  71. 81. Processing of application by Certifying Authority
  72. 82. Mail - DSC has been approved
  73. 83. Down Load your DSC
  74. 84. Enter the Authentication PIN received in the email notification. After clicking the “Download” button, a message shall appear on the screen that the certificate can be downloaded on same machine on which the request was generated. Click “OK” on the message window to proceed if you are using the same machine.
  75. 85. <ul><li>Your signature has been downloaded successfully </li></ul>
  76. 86. Check your DSC
  77. 91. How to Affix DSC on e-forms
  78. 96. Where to keep your DSC
  79. 97. Always keep your DSC on USB token
  80. 98. Pen Drive Vs. USB token Where as in USB Token, it is simply storing un-signed cheque book in your vault. When you carry Digital Certificate in a Pen Drive, it is like keeping blank signed Cheque in your wallet. In USB Token when you insert the USB Token, it automatically copies the certificate to the browser and when you remove the USB Token it automatically The Digital Certificate has to be manually copied and deleted from the browser each time you would have to sign. A virus cannot affect USB Token , and the digital certificate stored would always be secure. Pen Drive are prone to Virus Attack , as it is a normal hard disk, the certificates can always be destroyed / mutilated by Viruses. It is secure device, having inbuilt Cryptographic Service Provider (CSP) and Cryptographic processor , used specifically to carry Digital Credentials of individuals and is primarily used for Two Factor authentication. It is a portable hard Disk, which is un-secure and could be used for copying and deleting any files. USB Token Pen Drive / CD
  81. 99. Loss of your DSC and Revocation of your DSC
  82. 101. How does Digital Signature work Encryption/Decreption through DSC
  83. 104. DSC is a combination of key pair
  84. 105. Secret Key Cryptography <ul><li>Single key used to encrypt and decrypt. </li></ul><ul><li>Key must be known by both parties. </li></ul><ul><li>Assuming we live in a hostile environment (otherwise - why the need for cryptography?) </li></ul><ul><ul><li>Private key used to digitally sign. </li></ul></ul><ul><ul><li>Public key used to verify. </li></ul></ul>
  85. 106. <ul><li>Private keys are used for decrypting. </li></ul><ul><li>Public keys are used for encrypting. </li></ul><ul><li>encryption </li></ul><ul><li>plaintext ciphertext </li></ul><ul><li>public key </li></ul><ul><li>decryption </li></ul><ul><li>ciphertext plaintext </li></ul><ul><li>private key </li></ul>Using Keys
  86. 107. Digital Signature <ul><li>With private key document can be digitally signed </li></ul><ul><li> signing </li></ul><ul><li>plaintext signed message </li></ul><ul><li> private key </li></ul><ul><li> verification </li></ul><ul><li>signed message plaintext </li></ul><ul><li> public key </li></ul>
  87. 108. ALICE BOB
  88. 109. Transmitting over an insecure channel. <ul><li>Alice wants to send Bob a private message. </li></ul><ul><ul><ul><li>A public is Alice’s public key. </li></ul></ul></ul><ul><ul><ul><li>A private is Alice’s private key. </li></ul></ul></ul><ul><ul><ul><li>B public is Bob’s public key. </li></ul></ul></ul><ul><ul><ul><li>B private is Bob’s private key. </li></ul></ul></ul>
  89. 110. Hello Bob, Wanna get together? Alice Bob encrypt using B public decrypt using B private
  90. 111. OK Alice, Your place or mine? Alice Bob decrypt using A private encrypt using A public
  91. 112. Bob’s Dilemma <ul><li>Nobody can read the message from Alice. </li></ul><ul><li>How does Bob know that the message was really sent from Alice? </li></ul><ul><li>Bob may be comforted to know that only Alice can read his reply. </li></ul>
  92. 113. Alice can sign her message! <ul><li>Alice can create a digital signature and prove she sent the message (or someone with knowledge of her private key). </li></ul><ul><li>The signature can be a message digest encrypted with A private . </li></ul>
  93. 114. Signing with encryption
  94. 115. Alice Bob Sign with A private check signature using A public encrypt using B public decrypt using B private Both signing with encryption
  95. 116. Implications <ul><li>Suppose Alice denies she sent the message? </li></ul><ul><li>Bob can prove that only someone with Alice’s key could have produced the message. </li></ul>
  96. 117. Rs. Let’s Take another example
  97. 118. Measures to avoid misuse of DSC
  98. 119. Exclusive Access Password Management Avoidance in DSC Delegation Apply/affix DSC with proper care USB Tokens in proper Lock n Key
  99. 120. Misuse of DSC may lead to
  100. 121. <ul><li>Filing of form without the knowledge of owner </li></ul><ul><li>Change of Management of the company i.e. filing of form 32 and change of director </li></ul><ul><li>Dispute under sec.397/398 </li></ul><ul><li>Section 628 cases for wrong information </li></ul><ul><li>Pre-certification of forms without the knowledge of professionals </li></ul>
  101. 122. Future Usages of DSC with Government
  102. 123. <ul><li>500 implementation </li></ul><ul><li>agencies </li></ul><ul><li>2 lakh sites </li></ul><ul><li>70,000 man-years </li></ul><ul><li>of effort </li></ul><ul><li>26 GOI Deptts </li></ul><ul><li>35 States / UTs </li></ul><ul><li>360 Deptts @ States </li></ul>Land Records Road Transport Police Land Regn Treasuries Comrl Taxes Agriculture Gram Pts Munici palities Employment Exchanges Civil Supplies Education Income Tax Passport Visa MCA21 Insurance Banking National ID Central Excise Pensions GIS e-Posts Common Service Centres Gateway e-Procure e-Office eBiz EDI e-Courts India Portal Core Policies
  103. 124. <ul><li>Issuing forms and licences </li></ul><ul><li>Filing tax returns online </li></ul><ul><li>Online Government orders/treasury orders </li></ul><ul><li>Online file movement and approval system </li></ul><ul><li>Public information records </li></ul><ul><li>E-voting </li></ul><ul><li>Online money orders </li></ul>
  104. 125. Last but not the least… E-transformation opens tremendous opportunities for Professionals & Business Houses, But it require extensive care while its usage, as with negligence one can lose his own identity/ integrity which may cause serious problems.
  105. 126. Thank you