1. COMPLIANCE AND TECHNOLOGY Presented by: Sharad Jain Managing Director FSL Software Technologies Limited Private & Confidential

2. COMPLIANCE - MEANING Private & Confidential 2 FSL SOFTWARE TECHNOLOGIES LTD COMPLIANCE is nothing but the certification / confirmation of the task which was defined in the prescribed legislation, laws, rules & regulation, specified standards, or the terms of a contract.termscontract It can be following types: STATUTORY / LEGAL COMPLIANCE which are defined under various statutory laws by the various statutory bodies like Companies Act by ROC, FEMA by RBI etc. ADMINISTRATIVE COMPLIANCE which are to be compiled w.r.t to certain contracts entered like with banks, insurance, various agreements etc. INTERNAL COMPLIANCE which are defined by the department of different companies like submission of various MIS, fundflow, region sales report etc.

3. WHAT IS TECHNOLOGY 3Private & Confidential FSL SOFTWARE TECHNOLOGIES LTD TECHNOLOGY Equipments & Tools like computers, Webcam etc Communication Mechanism like Internet, Data on Cloud etc Equipments & Applications like Antivirus, security certification etc Software Applications For Business Control like ERP For Operations Control like CRM, Compliance, PSA (Professional Service Automation)

4. POWER OF TECHNOLOGY 4 FSL SOFTWARE TECHNOLOGIES LTD Expansion Beyond a point without Technology is “IMMPOSSIBLE” Business Expansion High Volume of data & Introduction of new products Multiple Offices Readily available Information in different forms Improves Process Involvement of Domain Expert in making software leading to Inbuilt Standard & Best Processes Made the world small Can reach any where through Skype, CCTV, video conference etc at virtually no cost & time. Faster Decision Digital Data Integration of data Speed & Conversion of data into useful information Increasing Efficiency Planning of Resources Information about productivity of each resource No physical reviews Eliminating Fearlines Use of Webcam/ GPS Skype /video conference Instant work data from everyone Productivity Review of Peoples Private & Confidential

5. ROLE OF TECHNOLOGY IN COMPLIANCE Private & Confidential5 FSL SOFTWARE TECHNOLOGIES LTD A. TECHNOLOGY HELPS IN LEARNING Search Engine / Knowledge Base Web based Tutorials Cd’s rather than Books Various softwares which provides upgraded forms etc for filing B. TECHNOLOGY HELPS IN EXECUTION Facilities for filing returns Auto Check & Duplication check Ease of operations Various facilities like offline returns of service tax, income tax etc

6. ROLE OF TECHNOLOGY IN COMPLIANCE Private & Confidential6 FSL SOFTWARE TECHNOLOGIES LTD C. TECHNOLOGY HELPS IN CONTROL & REVIEW Reports available on one click Exceptions reports are there to alarm well in advance Reports of person wise, location wise, priority wise etc are available to review a particular person or company/location or high risk compliances IMPORTANCE OF CONTROL & REVIEW Compliance are done by the executors who are at the junior level of the organization at different locations / departments BUT the Accountability are vested on the Directors or the Key management person who are at the Top level of the organisation

7. CURRENT SCENERIO Private & Confidential7 FSL SOFTWARE TECHNOLOGIES LTD HOW MOST OF THE ORGANISATION ARE MAINTAINING THE COMPLIANCES A. (i) S INGLE LOCATION MULTIPLE EXECUTORS (ii) MULITI LOCATION MULTIPLE EXECUTORS B. HO - CFO/ CS/ DIRECTORS -Dedicated one senior person for Compliances -Seek mails/ certificates from the executors every month compiled status report from all location & all executors to strong follow-up for missing information -No access to physical records -And generally one & two people & some fully booked for this excersice C. USERS - Have their own list of Compliances on Excel -Information to superior about Compliances through phone/ mails INSPITE OF ALL THE ABOVE THE SYSTEM ARE NOT FULL PROOF

8. As per the Sec 134 (5) ( f) of New Companies Act 2013 the director has been vested with the responsibility of “devising proper systems to ensure COMPLIANCE with the provisions of all applicable laws and that such systems were adequate and operating effectively” Consequences: Fine Rs. 50k to Rs. 25 lac AND OFFICER INCHARGE shall be punishable with IMPRISONMENT for a term maximum to Three years. NEED TO AUTOMATE THE COMPLIANCE SYSTEM Private & Confidential

9. CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

10. High number of compliances spread across multi- locations and multi-people having there own inconsistent practices. One system which integrates all Compliances of all different locations under single platform CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

11. System of getting the Compliance reports & time spend in report writing by the employees An Automated system where no couriers, mails were required to be sent and you could see Compliance reports sitting on your place Private & Confidential CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES

12. Compliances data being maintained by various peoples in various departments Centralized system having standard process/format across the organization CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

13. 80% of the time of the compliance team is going in maintaining & searching the huge compliance data 20% of the time is going on doing the actual compliance With the effective compliance tool the figures can be reversed i.e. 20% in maintaining & searching and 80% on actual compliances CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

14. Too much time spent on compiling and generating MIS reports of all the regions and presenting to the management A System where all this available at the click of a mouse duly compiled and an MIS as of now CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

15. Surety of the report compiling done by responsible user System generated MIS Report with no manual intervention and should be available on demand any where, any time and any place. CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

16. Old Compliance reports / any compliance and will take time to reach you after they are compiled CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential A System where all this available at the click of a mouse duly compiled and an up to date MIS

17. Skipping of a compliance required to be submitted for a specific period / month OR delay in adhering to the compliance on a particular due date. Centralized Library and the system will remind you the due date and target date of the compliances CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

18. If Employee quits his job With the system anyone can keep a track of each and every compliance and could conveniently switch responsibilities to someone else to take them forward CHALLENGES OF CONTROL & REVIEWS OF COMPLIANCES Private & Confidential

19. The list would go on & on... OR Use Technology to safeguard your business from the "COST & FEAR OF NON COMPLIANCE"