COMPLIANCE PRACTICE The present day legal climate is one of uncertainty and confusion. In most cases, a law comes to light only after its contravention, resulting in severe penalties. Compliance Management is a must in keeping you away from the long arm of the law! MCSL will help establish, evaluate, strengthen, monitor and assess your compliance management program in an environment of continuously changing needs and emerging risks.
Our Mission Providing end to end solution on Statutory Compliance Management with major thrust on:
Knowledge Quality Innovation ability
Emergence Overcoming traditional weakness – developing in house competencies with occasional help from external consultants Transition from mere transactional to value added istrative role – unique service model Focus to provide end to end solutions Market Trend – corrective actions vis-à-vis preventive steps Improving standard of Corporate Governance – SEBI Clause 49 (revised) and inclusion in the Companies (Amendment) Bill, 2003
Positioning
Diagnostics
Compensation
Compliance
Training Consulting
HR Systems
Public Systems Practice
USP Large Client Base (MMCL + MCSL) Over 90,000 payroll records – existing knowledge & capability Compatibility with payroll solutions – limit it up to report generation for pushing this new practice – case to case basis Presence across 45 locations – geographical spread Unique service model – end to end solutions Our in-depth understanding of various industries
Service Model – Our offerings
STATUTORY COMPLIANCE MANAGEMENT SERVICES
Statutory Compliance Audit
HR & Statutory Due Diligence
Statutory Advisory Services
Onsite (Help Desk Model)
INCLUDING STATUTES RELATED TO CONTRACTORS & CONTRACT EMPLOYEES
Statutory Benefit istration
Offsite (Remote Processing)
Competitors
Big 4 consulting firms (PWC, KPMG, E&Y & Hewitt) – in Statutory Audit, HR & Statutory Due Diligence
Limited offerings – to counter with our broad range of services
Probable tie up with any one of the big 4
Small Audit Firms – in statutory Audits & Statutory Advisory Services
Lack of industry knowledge on compliance management – identification of problem areas to implementation
Visbin Associates – based out of Bangalore (approx turnover of 5 crores) Clients – ITC, Wipro, Microland,
Cross selling – statutory management to payroll solutions
3M, Motorola, Health Scribe, Daimler Chrysler Research Center Pvt Ltd., John Brown Technologies India Limited., Lucent Technologies Hindustan Ltd., Wipro GE Medical Systems Limited., Wipro Limited Infotech Group (Hardware Group)., UB limited. BPL Ltd
Prospects – Mapping our offerings
Organisation with one or more branches spread across multiple locations – integration & control Group Companies – multiple registrations and licenses Expansion & Diversification – start from scratch New Set-up – MNC’s entering Indian market Mergers & Acquisitions / New Investment
Statutory benefit istration & Periodical Statutory Audit
Organisation with large no. of contractors & contract employees – obligations of principal employer Chronic process failure and repetitive non compliances
Statutory benefit istration & Periodical Statutory Audit Statutory advisory services & benefit istration Statutory advisory services & benefit istration HR & Statutory due diligence – opening up possibilities of other services Contract Labour management, Statutory advisory services & benefit istration
HR & Statutory due diligence
Benefits - Offered Assisting to develop good corporate governance & compliance with Sec 49 (SEBI) & AS (ing Standard) 15 To concentrate on core activities Reduction of variable cost and headcount Integration of the operations spread across various location Process driven approach – focus on key deliverables Enhancing the capability of ensuring compliances of various labour laws To avoid litigation arising out of non-compliances and thus reducing the man-hour involvement and cost
Service Model - Life Cycle Internal & External Customers NOMINATION FORM
BILL CHECKING
CONTRACTUAL CLAUSES
HR & LEGAL DEPARTMENT COMPLIANCE AUDIT
CONTRACTORS
COMPLIANCE PRACTICE COMPLIANCE AUDIT
CONTRACT EMPLOYEES
ENROLEMENT – PF & ESIC
EMPLOYEES
COMPLIANCE
STATUTORY AUTHORITIES INSPECTION ASSISTANCE COMPLIANCE CHECK
Statutory Compliance Audit Identification of applicable statutory rules and regulations Compliance check as per provisions of various acts and rules Gap identification and recommendations Presentation of the draft report and discussion on observations / findings Submission of final report
HR & Statutory Due Diligence Initial sensing – understanding clients business need Finalisation of Check List for various processes & activities Risk assessment & evaluation – adequacy and control measures -major area to focus Analysing various HR & Compliance policies and checking documents pertaining to various activities Financial liabilities associated with the processes if any is being determined – look into audited balance sheet & Annual report Gaps being identified in the above process are transformed into observations Observations are analysed to form recommendations Overview of the findings are presented to the client Submission of final report
Statutory Advisory Services New business set-up, Business Expansion, Diversification Mergers & Acquisitions Identification of the applicable labour regulations based on the nature of business, project plan and geographical proximity Drafting of the compliance report quoting the objectives, important provisions, istrative issues and penalties Procuring Registration and Licenses Streamlining Statutory Compliance istration with a special emphasis on Contractors and Contract Employees related issues
Statutory Benefit istration
Preliminary system / process study Creation of necessary database Maintenance of Forms and s, Challans and Returns Ensuring compliance of provisions as per Acts and Rules Assisting employees for ensuring coverage of statutory benefits Compliance check on the applicable statutes for the contract employees and the contractors Periodical Statutory Compliance Audit for the client & contractors Assistance during the statutory audits / inspections Generating customised reports Formation of need based project team – Onsite / Offsite or combination of both.
Our Expertise Approximately 24 labour regulations
Factories Act PF & Misc Provisions Act ESI Act Minimum Wages Act Contract Labour Regulation and Abolition Act Bonus Act Employment Exchange Compulsory Notification of Vacancies Act Apprentices Act Professional Tax Act Shop and Establishment Act Labour Welfare Fund Maternity Benefit Act Payment of Wages Act
Some Success Stories 2005 POSCO / Project Cost: 12 billion USD – Statutory Compliance Report KWIC / Project Cost: 2100 crores – Statutory Benefit istration (MOM) 2006 Qualcomm – Statutory Benefit istration (MOM) Fujitsu Consulting – HR & Statutory Due Diligence Mani Group – HR Due Diligence
Challenges - POA
Imparting continuous Training Engagement of External consultants selectively with pre defined SLA
Multiple consultants – integration of information, lack of ability, limitation in handling multi-location assignments
Scalability in future – lack of system
Building up a robust system that can take care of the routine activities
Involvement with Labour Unions on certain negotiations / handling legal cases / conciliation process / disciplinary proceedings
Strict “NO” on such activities
Lack of in-depth knowledge across consultants on compliance management
Small players – pricing pressure
Striving for 100% Compliance!