Comprensive Compliance Audit
Overview
Compliance Management in India is of complex nature. It tends to be enormous task for a mid to large sized company as it has to deals with a few hundred Acts and a few thousand Compliances to adhere to. These include Licenses, Registrations, Permissions, Consent Orders, Renewals, Returns, Registers, Payments, Remittances, Chillan filing among others.
In addition, Businesses are dynamic and constantly change. They add new markets, new products and new operating locations to their offerings. As a result, the applicability of Acts / Compliances also constantly changes. The Regulatory environment in India is also fluid. There are approximately 3,000 changes in a year. A number of these changes affect the Compliance obligations of an organisation.
Companies Act, 2013 has brought in provisions for criminal proceedings and Jail term for Directors / KMPs. It requires Directors to devise system for adherence with all applicable compliance and ensure that system is adequate and operate effectively.
SEBI Listing regulation also requires that Board shall periodically review the compliance report covering all applicable laws along with the steps taken to rectify non-compliance.
Today, Organisations in India struggle to provide the assurance as they operate in a highly ad-hoc, paper based and people dependent environment. As a result, they need external expertise to plan, manage, measure and report Compliance Assurance.
The above limitations and dependencies put tremendous amount of accountability on Compliance Officers to manage their Compliance Obligations and ensure that the Company Complies with the law of the land. Here are a few key challenges that they face on a day to day basis:
Key Challenges
Complex
Numerous Acts / Compliances for the Organisation and Vendors
Resources
Lack of dedicated resources to work on planning, management & execution
Expertise
High level expertise Required to manage various applicable compliances
Fluid
Too many Frequent Regulatory Changes increasing complexity
Transient Compliance Audit Solution
At Transient HR, we feel your pain. We work with hundreds of customers like you across industries, geographies and Business. We have developed deep expertise in helping you keep a close eye on your compliance program and helping you institutionalise accountability, transparency and timeliness with our compliance audit service. Our team of young and dynamic professionals brings to your organisation the right tools, processes, templates and Access to world class knowledge repository.
What Transient Offers You
Compliance Health Check Services
We offer this service periodically or on a need basis. This service aims to conduct a comprehensive As-Is Compliance Assessment of your organisation. This includes:
- Detailed Review of your Establishment & Business
- Comprehensive assessment of applicability of Acts and Compliance
- Acts and Compliance under Central, State, UT, Local Government
- Industry Specific Compliance
- Licenses, Registration, Consent Order, Permissions
- Gap Reporting (Actual vis-à-vis Applicable)
Vendor Audit
Vendors Include suppliers of critical raw material, business services, utilities and human talent among others, there are situation where we need to ensure that vendors are in compliance with various Labour laws, Tax laws and local laws. Our Vendor Audit services help you accomplish the following:
- Identify Acts & Compliances due to your Vendors in context of your relationship
- Discover Your specific Compliance Requirements from the Vendor
- Thorough qualitative & quantitative review of all applicable compliances
- Periodic monitoring and reporting of compliance status of vendors across location
Compliance Framework Audit
Our Compliance Framework audit services provide a holistic review of your organisation’s Compliance culture, readiness and maturity. Here is what we conduct:
- Compliance program review w.r.t coverage, applicability and correctness
- GAP reporting of missing compliances
- Review of performance of product’s existing features
- Product’s usage and identification of root cause for low product usage
- Report of existing User mapping against the current usage profiles
- Verification of documents uploaded in the product
- Consulting Services for creating a comprehensive Compliance Framework
Scope of Work and Review Coverage
416 Acts, over 27,000 compliances and 1400 Fillings.
Defining guidelines covering all aspects of employment like wages, employee’s welfare, working environment, working days including holidays and leaves, Women employment, child labour.
103 Acts, over 9,000 compliances and 692 Fillings.
Laws in this category cover aspects usage of specific items like batteries, Bio medical Waste, hazardous chemicals, Solid / e-waste, etc., building / Employee safety (fire, handling of hazardous Substances etc.)
54 Acts, over 2,000 compliances and 86 Fillings.
Secretarial cover aspects like corporate governance practice, risk management polices / practices, Board constitution and code of conduct of directors and senior management, remuneration of senior management, etc.
274 Acts, over 12,000 compliances and 385 Fillings.
Laws in this category regulate specific industries only and are not applicable to other industries. For instance, Drugs and cosmetics act, Poison act, etc. are applicable to the pharmaceutical industry.
103 Acts, over 9,000 compliances and 692 Fillings.
Laws in this category cover direct taxes (income tax, property tax, corporate tax, etc.) and indirect taxes (GST, customs duty etc.)
Scope of Work and Review Coverage
416 Acts, over 27,000 compliances and 1400 Fillings.
Defining guidelines covering all aspects of employment like wages, employee’s welfare, working environment, working days including holidays and leaves, Women employment, child labour.
103 Acts, over 9,000 compliances and 692 Fillings.
Laws in this category cover aspects usage of specific items like batteries, Bio medical Waste, hazardous chemicals, Solid / e-waste, etc., building / Employee safety (fire, handling of hazardous Substances etc.)
54 Acts, over 2,000 compliances and 86 Fillings.
Secretarial cover aspects like corporate governance practice, risk management polices / practices, Board constitution and code of conduct of directors and senior management, remuneration of senior management, etc.
274 Acts, over 12,000 compliances and 385 Fillings.
Laws in this category regulate specific industries only and are not applicable to other industries. For instance, Drugs and cosmetics act, Poison act, etc. are applicable to the pharmaceutical industry.
103 Acts, over 9,000 compliances and 692 Fillings.
Laws in this category cover direct taxes (income tax, property tax, corporate tax, etc.) and indirect taxes (GST, customs duty etc.)
Assignment Approach
Compliance is a highly subjective matter. What is applicable to one business may not be applicable to another. The applicability is determined by several factors including Establishment and its Business. The first important step is to determine applicability of all Compliances for the Business. Once the scope of assessment is firmed up, Transient HR’s Comprehensive Compliance Audit Service creates a team of experts and assign it to your review. This is based on the following:
Business Discovery Framework
Transient HR team will work closely with your Business leaders to understand the following items:
Plant / Factory, Office (HO, RO, BO) Leading the requirement of licence, Registration,
Listed, Public limited, Private Limited, OPC, LLP
Manufacturing / Service
Automobile, Banking, Healthcare
(States / UTs / Municipal Corporations / Municipalities / Gram Panchayats / Zila parishads / SEZ
Full Time Employees / Contract Staffing
(Boilers, Weighing Bridge, Gas Cylinders, Lifts and Hoists, DG Sets, diesel Storage Tanks)
Domestic (State / UTs / Cities), International
Compliance Framework Audit
Transient HR will analyse all the information gathered during the Business Discovery and do the following:
- Assessment of applicable Acts & Compliances
- Identification of all relevant and applicable Licenses, Registrations,
- Permissions & Consent Orders along with their validity and renewal requirements
- Preparation of draft list of all applicable Compliances
Review of Statutory Documents
Transient HR will analyse all the information gathered during the Business Discovery and do the following:
- Qualitative and Quantitative review on accuracy, timeliness and status of compliance requirement
- Review of all applicable licenses, registrations, permissions, consent orders, registers, returns, challans, payments & remittances
- Documentation of all observations categorized by Risk
Finalization of Draft Report
Finalization of Draft Report
Transient HR team will publish a draft report to management team consisting of all the observations along with commentary of discussion with the relevant local teams.
Finalization of Draft Report
Risk
(High / Medium / Low)
Location Wise
(Plant / Factory / Low)
Period Wise
(Monthly / Quaterly / Half Yearly /Annual)
Compliance Category Wise
Status Wise
(Completeness Level)