STATUTORY COMPLIANCE

A STITCH IN TIME SAVES “FINES”

 WHAT DOES IT IMPLY ?
• Statutory means "of or related to statutes," or
what we normally call laws or regulations.
• Compliance just means to comply with or
adhere to.
• The simple connotation of the term “statutory
compliance” is following the laws on a given
issue.
• Practically, the term is associated with an
organization, which is required to adhere to a
plethora of laws applicable to them.
THE UNDERLYING OBJECTIVES
• Laying down policy and procedures to be followed by
locations of the organization.
• Improving internal processes and systems.
• Training the organization on legal compliance related
issues and their implications.
• Ensuring high level of compliance across the
organization.
• To facilitate good governance and proactive,
accountable management by consolidating,
maintaining and continuously improving the legal
compliance framework of the organisation.
 WHY AN ORGANISATION NEEDS IT ?
1. Corporate Governance :
– The recently amended Clause 49 of the Listing
Agreement introduced by SEBI has brought into focus
the Board of Directors’ responsibility in ensuring that
their company has incorporated a structured Legal
Compliance Management (LCM) system.
– As per sub clause 1 (C) (iii) “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.”
WHY AN ORGANISATION NEEDS IT?
(CONTD…..)
– On an average, around 120 laws are applicable to an
organisation.
– In view of the above, each organisation has
thousands of compliance tasks to be fulfilled and
monitored.
– Putting together the full list of applicable legislations
is a very time-consuming and tedious process, and is
better entrusted to experts who have sufficiently
researched and documented all commercial laws.
WHY AN ORGANISATION NEEDS IT?
(CONTD…..)

– Core to good corporate governance is compliance

with the laws of the land. This assists companies in
their endeavour towards being a good corporate
citizen.
– Corporate governance is a strategy while legal
compliance is an operational plan of action.
 WHY AN ORGANISATION NEEDS IT?
(CONTD…..)

2. Market Credibility:
– Independent assessment of Legal Compliance by third party experts will
go a long way in establishing the Company’s credibility. It is carried out to
satisfy external clients, especially international clients, who need to adhere
to certain procedures for transacting business. For e.g. International retail
chains that source from India insist that vendors go through the legal
compliance audit and produce a certificate of compliance. International
retail chains are touchy about child labour and do not want to be seen as
felicitating child labour.

3. To clean up the “legal mess”

 HOW WE GO ABOUT IT?
Identify the locations to be included for legal compliance of your organization

Identify what are the laws; general laws, state laws etc applicable

Research on all the relevant acts and prepare checklists of the same

Prepare detailed questionnaire in simple formats of all the applicable acts

CONTD…
 …CONTD

Provide a presentation to train the concerned persons about the compliances

Provide the organization the said questionnaires

Once the questionnaires are filled by various locations

conduct audits on quarterly basis

In case of non-compliance, try and sort out the non-compliance at the lower level

In case of repeated non-compliance to bring it

to the notice of the management concerned

…CONTD
 …CONTD

In case of repeated non-compliance to bring it

to the notice of the management concerned

Issue a compliance certificate duly signed by our firm

Conduct periodical reviews of the compliances

Update of legal provisions as and when required

 WHAT ARE THE KEY
BENEFITS?
• Fully compliant companies meeting their legal statutory compliance
requirements.
• Peace of mind - service is offered by specialists that management is able to
rely on.
• Costly penalties, interest and the risk of prosecution of officers for late filing
are avoided.
• Add value to the organisation. From "overhead" to a cost "saving" function.
• Normally companies are compliant with substantive law but a legal audit
tells whether they comply with the procedural law as well.
• It provides a tailored service.
• The Legal Compliance Certification will provide an objective and consistent
benchmark across organization and across industries.
 WHAT WE PLAN TO DO
Deliver focused Legal Statutory Compliance to
companies and groups of any size. The services
would include:
• Maintaining control of legal statutory compliance
filing deadlines
• Handling procedural requirements.
• Maintaining statutory records.
• Suggesting correctional measures in case of
breaches.
 WHAT WE PLAN TO DO?
(…Contd)
• Provide a management service on a legal platform through
establishing standards for systems and processes that ensure
compliance
• After the assessment of the organizations current statutory
compliance we would enable the organizations to acquire the
skill-sets and systems to ensure continued compliance thereby
reducing the risk exposure
• Connecting the client’s network to our website (intra –net), by
providing them with passwords to access their company details
• Provide regular up dates regarding all laws followed.
 SECTORS
• Advanced Industrial • Health Care, Medical
Equipment Products &
• Automobiles Pharmaceuticals
• Chemicals • Media and Entertainment
• Electronics and Software • Mining and Metals
• Engineering and • Oil and Gas
Construction • Retail and Consumer
• Financial Services Goods
• Fire-fighting Systems • Telecommunications
• Food and Beverages • Transportation
• Forest Products • Utilities
 SAMPLE STUDY
(Food & Beverages Industry)
• Corporate Compliances
• Tax
• Environmental concerns
• Social conditions of production
• Brand/Reputation management
• Packaging
• Genetically modified organisms
• Food Beverage
Thank You