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Presented by: Ms. Bhavani Raj Partner R & A Associates Enhanced Thrust on Compliance.

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Presentation on theme: "Presented by: Ms. Bhavani Raj Partner R & A Associates Enhanced Thrust on Compliance."— Presentation transcript:

1 Presented by: Ms. Bhavani Raj Partner R & A Associates Enhanced Thrust on Compliance

2 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. 50 Rs. 8

3 PPL License is required

4 Industry + + + +

5 Need for Compliances Responsible towards Shareholder Responsible towards Creditor Responsible towards Society Responsible towards Employees

6 Risk of Non-compliance Category A : Cessation of business operations Imprisonment by the errant officials. Attachment of bank accounts Category B : Civil action by the authorities Punitive action resulting in fines against the company/officials Public embarrassment Category C : Damage to the reputation of the company and its employees Minimal Penalties

7 You cannot escape your responsibilities by evading it but only by complying with it. Our planet's alarm is going off, and it is time to wake up and take action! Don't Worry, we are there to solve all your problems.

8 Total of enacted State specific legislations : State wise Laws No. of Laws (approx) Andhra Pradesh & Telangana 600 Arunachal Pradesh48 Assam55 Chhattisgarh58 Delhi 63 Gujarat 148 Haryana 280 Himachal Pradesh 237 Jammu And Kashmir 263 Jharkhand 35 State wise Laws No. of Laws (approx) Karnataka145 Kerala217 Madhya Pradesh111 Manipur18 Mizoram 34 Nagaland 78 Orissa 210 Puducherry 68 Punjab 236 Sikkim 86

9 Number of State Specific legislations : State wise Laws No. of Laws (approx) Tamil Nadu534 Tripura60 Uttar Pradesh 173 Uttarkhand 67 West Bengal357

10 Categorization of various laws (Central / State /Central cum State specific) Labor laws – Approx 30 legislationsDomain Specific laws – Depends on ActivityFiscal laws – Approx 10 - 15Establishment laws – State Specific lawsGeneral Laws, Family Laws, land ceiling laws, administrative laws etc

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

12 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

13 Enhanced Thrust by Government on compliance of various laws Report by Whole Time Company Secretary - Whole Time Company Secretary is responsible to report the status of compliance to the Board Secretarial Audit Report - Company Secretary in Practice is responsible to provide the compliance status through Secretarial Audit Report

14 Meaning of Secretarial Audit Secretarial 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.

15 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 r ules/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

16 Requirement of Secretarial Audit Sec 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.

17 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

18 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.

19 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 95394 Email:

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