corporate compliance, (general discussion)

CORPORATE COMPLIANCE

Corporate Compliance

Definition: A corporate compliance program is a system which is designed to detect and prevent violations of law by the agents, employees, officers and directors of a business.

Clearly, a code-of-conduct is an important component of a compliance program and ethics remains the heart and soul of all corporate compliance programs. 

Understanding the Company

Identification of Applicable Laws

Evaluation of Laws

Assessment of Laws

Setting of Compliance Organisation Structure

IMPLEMENTATION OF COMPLIANCE SERVICES WITHCORPORATE COMPLIANCE MANAGEMENT

THE FIVE STEP PROCESS

STEP I : UNDERSTANDING THE COMPANY

Company’s History & Background

Capital Structure & Evolution

Promoters & Group Companies

Management & Administration buildup

Financial Soundness & Debt Structure

Risk Management & Protection

Licenses & Approvals

STEP II : IDENTIFICATION PROCESS

General Application of

Laws

Sectoral Application of

Laws

Industry / Segment

Application of Laws

Geographical Application of

Laws

On the basis of Number of Employees

Transaction Application of

Laws

Corporate Laws

Taxation Laws

Securities Laws

GENERAL APPLICATION OF LAWS

INDUSTRY/ SEGMENT WISE APPLICATION OF LAWS

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 AndFood Processing

Capital Goods

Drugs, Pharma And Healthcare

Banking And NBFC

Financial Services

STEP III – EVALUATION OF COMPLIANCE TIMINGS

Compliance Timings

One Time Fixed/Regular Event based

Identify the gap

between

the present compliance system

and

the results of Evaluation Process

STEP IV - ASSESSMENT

Establishing Controls & Standard Delegation of Responsibility Analysis & Assessment Compliance Reporting

STEP V : CREATION OF COMPLIANCE STRUCTURE

Value Creation of Enterprise through Corporate Compliance

Enhanced Trust and Confidence of all

Stakeholders

Employees

Investors Customers

Suppliers

Government and Regulators

Society

VALUE CREATION THROUGH CORPORATE COMPLIANCE

Growth

Growing Revenues

Growing Profits

Growing Market Value

VALUE CREATION THROUGH CORPORATE COMPLIANCE

CORPORATE VALUE WITHOUT CORPORATE COMPLIANCE

• Loss of Investors Confidence

• Difficulty in further raising of capital

• Investor Complaints

• Loss of reputation in National & International Markets

DISCLOSURE & TRANSPARENCY

Compliance Compliance

SECTORAL APPLICATION OF LAWS

Sector

Public Private

Service

Manufacturing

Trading

Simplification: The Next Move

Developing Compliance Management Tools

Law Wise

Period

Wise

CHECKLIST PREPARATION

CONDUCTING DUE DILIGENCE

Periodically On

Transaction basis

USE OF TECHNOLOGY

Compliance Organisation

StructureAlerts &

Notifications

Risk Mitigations

Performance Reporting

RESEARCH & UPDATIONS

Regular visits to Authority’s website

Newspapers & Business News Channels

Subscriptions of Law websites

Newsletters & Magazines

Discussions e-Forms

80%

20%

Filing forms & Applications

Registers & Returns

Checklists

Good Compliance

Risk Mitigation

Corporate Governance

Focus on Procedural Complianc

es

PRESENT FACE

Traditional Role

Strategic Role

ADVANTAGES OF COMPLIANCE MANAGEMENT

Effective control tool for Top Level Management

Create awareness of status of Compliance based Risk

Centralized Control of Compliance Management

Strengthens areas of weakness

Central repository of documents

Good Corporate Governance

Reduces Risk

Higher Profits

Higher Valuation

RESULT OF GOOD CORPORATE COMPLIANCE

MAKING YOUR COMPANY DIFFERENT & LEADING TOWARDS EXCELLENCE

HAPPY COMPANY

HAPPY MANAGEMENT

HAPPY INVESTORS

HAPPYSUPPLIERS

HAPPY REGULATORS

HAPPYCUSTOMERS

The Conclusion is ……….

Make Your Company GOOD GOVERNED COMPANY

Systematic

Compliant ValuedBE…..

Thank You