The document discusses the importance of implementing an effective compliance management system for corporate governance. It argues that compliance is an opportunity, not a burden, and can strengthen a company's foundations. An IT-based compliance system can help shift the focus from traditional, paperwork-based compliance to more strategic compliance management. This can help reduce risks and lead to benefits like higher profits, valuation, and competitive advantage. The conclusion is that companies should aim to become well-governed through strict adherence to compliance.

1. Pavan Kumar Vijay Past President, ICSI Excellence for achieving better Corporate Governance C orporate C ompliance Management _____, 07.04.2008

2. Do you 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

3. Are Industry & Professionals ready with the answers? Do we consider Corporate Compliances as just another burdensome, complicated , back office operations, monotonous work? OR Do we see any opportunity in it ?

4. A Famous Teaching…. Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Elva Edision

5. Where Opportunity lies?? The opportunity lies in good Corporate Governance. Where DISCLOSURE accompanies TRANSPARENCY

6. 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…. History is Witness S U C E S S D I S A S T E R

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

8. Disclosure & Transparency Compliance in Letter Compliance in Letter & Spirit Filing the Gap

9. Compliance in Letter Details of complaints resolved during the financial year 2006-07 are as follows. Complaint Received Complaint Resolved Pending 430 230 200

10. Compliance in Letter & Spirit EXAMPLE :– INVESTOR’S COMPLIANT MODEL Compliant Received Compliant Resolved Time involved Reasons for delay 4 3 Reasons 1- Non-receipt of Bonus 7 days - 1- Demat 7 days - 1- Non-receipt of dividend 7 days - 1- Non-receipt of Notice Pending 14 days Wrong address

11. Designing effective & user friendly COMPLIANCE MANAGEMENT SYSTEM to lay down strong foundation for GOOD GOVERNANCE

12. Compliance of Rules & Regulations Good Corporate Governance

13. Implementing Effective COMPLIANCE MANAGEMENT SYSTEM

14. Corporate Governance in System 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. Compliance of all laws (CAL) Locations Sector Transaction Segment Profile Factory Employees Product CAL

16. What is Compliance of all laws?? Compliance of all laws Not just any another compliance ……………… it is a “ HIDDEN KHAZANA ” for all stakeholders .

17. HIDDEN KHAZANA for all STAKEHOLDERS Company Professional INVESTORS GOVERNMENT AND REGULATORS SOCIETY SUPPLIERS CUSTOMERS LENDERS

18. Right Proportion = Creating difference Understand your company Proper Identification & Evolution of applicable laws Analysis of applicable laws Assessment

19. Different Corporate Structures Understanding at MACRO LEVEL Public Sector Undertakings Private Limited Companies Trusts And NGOs Coop Societies And Producer Companies Municipal Boards Semi-government Organisation Unlisted Public Companies Listed Public Companies

20. Different Industries 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. Different Geographies Global Operations Indian Operations

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

23. Necessity: The mother of invention The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand. By Sun Tzu

24. Simplification: The Next Move Developing Compliance Management Tools C hecklist Law wise Period wise

25. Effective Usability S oftware Developing Compliance Management Tools..contd Triggering date & time Triggering information input Organisation type, Capital deployed, Business type Product profile

26. Effective Usability U pdations Newsletters & Magazines Discussion e-Groups Software carried automatic updating options Attending seminars & workshops Newspapers & Business News Channels Regular visits at Authority’s website Developing Compliance Management Tools..contd

27. Unsystematic Compliance System… the aftermath

28. CURRENT PROFILE 80% 20% TRADITIONAL ROLE STRATEGIC ROLE Form Filing Registers& Returns Good Compliance Risk Mitigation Corporate Governance PRESENT FACE ChecE Checklists

29. Let IT works for you………….

30. USING COMPLIANCE SYSTEM 80% 20% STRATEGIC ROLE TRADITIONAL ROLE Corporate Compliance Risk Management Form filing System Driven organisation Registers & Returns Checklists & Modules IT based Compliance System can change the face……

31. Advantages of Corporate Compliance Easy Quantification of risk Establishing Risk appetite Identify and prioritize controls Multitude of Compliance obligations . Building Strong Foundations Extended Confidence to Investors Gaining Competitive Edge Good Compliance System leads to Excellence in Operations

32. Effect of Technology Easy Compliance Impossible Non- Compliance

33. Good Corporate governance Reduces Risk Higher Profits Higher Valuation of Company RESULT OF GOOD CORPORATE COMPLIANCE MAKING YOUR COMPANY DIFFERENT & LEADING TOWARDS EXCELLENCE

34. E xellence Happy Company Happy Management Happy Investors Happy Customers Happy Regulators EXCELLENCE PAYS…

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