Presented by:Ms. Bhavani Raj

PartnerR & A Associates

Enhanced Thrust on

Compliance

Beware of Laws and

pay my Tax of Rs.50/

every year

Beware of Laws and

pay my Tax of Rs.8/

every year

Rs. 50Rs. 8

PPL License is required

Industry

+

+

+

+

Need for Compliances

Responsible towards Shareholder

Responsible towards Creditor

Responsible towards Society

Responsible towards Employees

Risk of Non-compliance

You cannot escape your responsibilities by evading it but only by complying with it.

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Don't Worry, we are there to solve all your problems.

Total of enacted State specific legislations :

State wise Laws

No. of Laws (approx)

Andhra Pradesh & Telangana

600

Arunachal Pradesh

48

 Assam 55

Chhattisgarh 58

Delhi 63

Gujarat 148

Haryana 280

Himachal Pradesh

237

Jammu And Kashmir

263

Jharkhand 35

State wise Laws No. of Laws (approx)

Karnataka 145

Kerala 217

Madhya Pradesh

111

Manipur 18

Mizoram 34

Nagaland 78

Orissa 210

Puducherry 68

Punjab 236

Sikkim 86

Number of State Specific legislations :

State wise Laws

No. of Laws (approx)

Tamil Nadu

534

Tripura 60

Uttar Pradesh

173

Uttarkhand

67

West Bengal

357

Categorization of various laws(Central / State /Central cum State specific)

•Labor laws – Approx 30 legislations

•Domain Specific laws – Depends on Activity

•Fiscal laws – Approx 10 - 15

•Establishment laws – State Specific laws

•General Laws, Family Laws, land ceiling laws, administrative laws etc

Compliance Audits :• Mergers and Takeovers• Joint ventures and collaborations• Due diligence for Bank

Enhanced Thrust by Government on compliance of various laws

Laws continue to be enacted, and the regulatory

environment has become more complex due to unacceptable conduct

remediation. Consequently, entities continue to be

compelled to demonstrate compliance with legal

mandates through documented assurance

assessments

Enhanced Thrust by Government on compliance of various laws

Report by Whole Time Company Secretary

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Whole Time Company Secretary is responsible to report the status of

compliance to the Board

Secretarial Audit Report

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Company Secretary in Practice is responsible to provide the compliance status through

Secretarial Audit Report

Meaning of Secretarial AuditSecretarial Audit is a process by an Company in whole time practice to verify the status of various applicable laws including rules/ regulations with respect to the procedures to be followed, records to be maintained, statutory forms to be filed.

Audit Coverage?Comprises the following:• the Companies Act, 2013 and the rules made under the Act• The Memorandum and Articles of Association of the Company• the Securities and Exchange Board of India Act, 1992 and the

rules/regulations made under that Act• the Reserve Bank of India Act, 1934 and the

rules/regulations/directions made under that Act• The Securities Contracts (Regulation) Act, 1956 and the rules m

ade under that Act• The Depositories Act, 1996 and the regulations• The Foreign Exchange Management Act, 1999 and the rules an

d regulations made under that Act;• Competition Act, 2002 and the rules and regulations made und

er that Act;• The Listing Agreement;• any other law specifically applicable to the Company

Requirement of Secretarial AuditSec 204 of Companies Act, 2013 read with Rule 9 of Companies (Appointment and Remuneration to Managerial Personnel) Rules, 2014 provides for the requirement of conducting Secretarial Audit for the following Class of Companies :

• Every Listed Company [or]

• Every Public Company having paid up share capital of Rs. 50 Crores or more [or]

• Every Public Company having a turnover of Rs.250 Crores or more.

Applicable from next financial year.

AP Reorganization Act• All the laws applicable to the undivided AP

will continue to apply to the new States of Telangana and AP. to facilitate their application in respect of Telangana and AP States.

• The Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment

AP Reorganization Act – Effects on Companies w.e.f June 2, 2014.

• All the CIN numbers has changed• Any shifting of Registered Office need to

take the permission of Central Government and need to comply with the provisions of shifting from one state to another state.

• Sales between the two new states will be considered as inter state transfer. Accordingly, CST need to be paid on such sales.

• Stamp duty need to be paid in respective states only.

Thank You

Beware of False Knowledge It is more dangerous than ignorance.

You may contact:Ms. Bhavani Raj, Parnter

Land line no: 9140 4003 2244 Hand phone: 91 96666 95394Email: bhavani@rna-cs.com