Project on Statuory compliance

Statuory compliance- Meaning

Statuory means “related to statutes” or the laws or regulations followed by organizations which are particularly designed for a particular state.

Compliance means to comply with or to obey to what have been told to follow strictly.

So the collective meaning of statuory compliance is following the laws formulated by the government on certain issues.

This term is mainly associated by the organization, which is required to adhere to certain no of laws applicable to their establishment.

Objectives of compliance:-

• Laying down policy and procedures to be followed by locations of the organization.

• Improving internal processes and systems.

• Training the organization on legal compliance related issues and their implications.

• Ensuring high level of compliance across the organization.

• To facilitate good governance and proactive, accountable management by consolidating, maintaining and continuously improving the legal compliance framework of the organization.

• Safeguarding the employee and enterprise from risks by managing and consulting on issues such as retirement benefits and taxation.

Need/Importance of statuory compliance:-

1. Corporate Governance :

– The recently amended Clause 49 of the Listing Agreement introduced by SEBI has brought into focus the Board of Directors’ responsibility in ensuring that their company has incorporated a structured Legal Compliance Management (LCM) system.

– As per sub clause 1 (C) (iii) “The Board shall periodically review compliance reports of all laws applicable to the Company, prepared by the Company as well as steps taken by the Company to rectify instances of non - compliances.”

– In view of the above, each organisation has thousands of compliance tasks to be fulfilled and monitored.

– Putting together the full list of applicable legislations is a very time-consuming and tedious process, and is better entrusted to experts who have sufficiently researched and documented all commercial laws.

– Core to good corporate governance is compliance with the laws of the land. This assists companies in their endeavour towards being a good corporate citizen.

– Corporate governance is a strategy while legal compliance is an operational plan of action.

Delays in statutory compliances with national and state level legalities that affect businesses lead to major monetary loss, in addition to unnecessary waste of time and energy.

– Statutory Compliance varies from state to state, and is subject to frequent, sometimes unpredictable changes. This complex area requires expertise and full time monitoring. Treating this area in an ad hoc manner or even with the best of intentions by non-experts is an unnecessary risk.

2. Market Credibility:

– Independent assessment of Legal Compliance by third party experts will go a long way in establishing the Company’s credibility. It is carried out to satisfy external clients, especially international clients, who need to adhere to certain procedures for transacting business. For e.g. International retail chains that source from India insist that vendors go through the legal compliance audit and produce a certificate of compliance. International retail chains are touchy about child labour and do not want to be seen as felicitating child labour.

3. To clean up the “legal mess”

Its good to comply with the laws that are formulated by the government in strict manner as failure to fulfil them will lead to penalities, challans. This brings a lot of harassment and spoils the reputation along with a big loss of money and time.

Benefits:-

• Fully compliant companies meeting their legal statutory compliance requirements.

• Peace of mind - service is offered by specialists that management is able to rely on.

• Costly penalties, interest and the risk of prosecution of officers for late filing are avoided.

• Add value to the organisation. From "overhead" to a cost "saving" function.

• Normally companies are compliant with substantive law but a legal audit tells whether they comply with the procedural law as well.

• It provides a tailored service.

• The Legal Compliance Certification will provide an objective and consistent benchmark across organization and across industries.

Creating and Executing HR Compliance

Clearly, human resources (HR) compliance is essential for any organization to be successful in today’s legal environment. But achieving and maintaining compliance can be elusive goals for organizations that do not recognize the challenges and develop an effective strategy to meet them.

HR compliance should be treated as a process of defining both individual and group behaviors to ensure the organization’s applicable laws and policies are followed.  The HR function must hire and retain individuals that are knowledgeable about HR specific laws and can create policies and procedures in relation to these laws.  Just writing policies and procedures and placing them in a repository is not enough.  Once established, they must be effectively communicated throughout the organization.

This is most likely to happen in cases where HR compliance has been integrated with the organization’s overall business strategy, and the organization’s leadership has taken steps to ensure all employees understand the importance of HR compliance. Here are five basic principles organizations should follow to help achieve these goals:

1. Hiring the Right Talent – Hiring the right talent within the HR function’s area of responsibilities (compensation, employee benefits, legal requirements, talent management) is one of the most important issues for organizations today.  The HR function must have the knowledge, skills and experience, or be able to access it through third-party relationships.

2. Proper Education and Training – The talent in the HR function must be well versed in employment law and the regulatory/legal requirements that can affect an organization at anytime.  These laws and requirements are changing all the time and its imperative for the HR function to stay apprised of the latest information available.

3. Create an Employee Handbook and Update it Regularly – An organization’s Employee Handbook is one of its most important documents.  The Employee Handbook is a communications tool that should clearly articulate the organization’s policies and procedures and how business should be conducted.  It is a best practice to have legal counsel review the handbook and any new policies and procedures before distribution.

4. Conducting Scheduled HR Compliance Audits - Many HR functions are typically understaffed and overworked.  As noted, non-compliance can be the basis for financial and reputational risks for organizations.  Conducting scheduled HR compliance audits should be a part of an organization’s overall strategy to avoid any legal liabilities.

5. Communicate, Communicate and Communicate – The HR function is a critical component of an organization.  Whether there are compliance issues or not, it is critical for the HR function leaders (CHRO, VP of HR, etc) to keep other executives up to speed on potential HR compliance risks and recommended remediation.

These steps will help the HR function take a large step to achieving its goal of maintaining HR compliance for the overall organization.

HOW WE GO ABOUT IT?

Identify the locations to be included for legal compliance of your organization

Identify what are the laws; general laws, state laws etc applicable

Research on all the relevant acts and prepare checklists of the same

Prepare detailed questionnaire in simple formats of all the applicable acts

CONTD…

Provide a presentation to train the concerned persons about the compliances

Provide the organization the said questionnaires

Once the questionnaires are filled by various locations conduct audits on quarterly basis

In case of non-compliance, try and sort out the non-compliance at the lower level

In case of repeated non-compliance to bring it to the notice of the management concerned

…CONTD

Statuory compliances in HR

The Apprentices Act, 1961 The Contract Labour (Regulation & Abolition) Act, 1970 The Child Labour (Prohibition & Regulation Act), 1986 The Industrial Disputes Act, 1946 The Minimum Wages Act, 1948 The Payment Of Gratuity Act, 1972 The Industrial Employment Standing Orders Act, 1946 The Employees Provident Fund & Miscellaneous Provisions Act,

1952 The Equal Remuneration Act, 1976 The Employees' State Insurance Act, 1948 The Payment Of Bonus Act, 1965 The Payment Of Wages Act, 1936 The Factories Act, 1948 The Employment Exchanges(Compulsory Notification Of

Vacancies) Act, 1959

…CONTD

Issue a compliance certificate duly signed by our firm

Conduct periodical reviews of the compliances

Update of legal provisions as and when required

In case of repeated non-compliance to bring it to the notice of the management concerned

The Trade Unions Act, 1926 The Workmen's Compensation Act, 1923 Inter State Migrant Workmen( Regulation Of Employment &

conditions Of service ) Act, 1979

Compliance Under Labour Laws

Statutory compliance under various labour laws has to be ensured by establishments. It is not just limited to the statutory deposits, returns and records to be maintained by the employer under various labour laws, but also to represent them in case of prosecution under various statutes. Hence, it hardly needs to be emphasised that the labour related laws cast an obligation on the employer for meticulous, impeccable and timely compliances. In the event of violation or delay in complying with the statutory requirements, the consequences in terms of levy of damages, prosecution is inevitable. Further, under most of the employment laws, the top executives or the head of the institution/organisation, as the case may be, is held liable and responsible and is required to personally attend such matters before the competent Authority or Court.

To facilitate day-to-day functioning, a Checklist of periodic Returns and Informations to be filed, which could be effectively followed to ensure compliance of various employment laws, is given below.

it applies t

CHECKLIST

Statutory Compliances by Employers for Statutory Deposits, Returns & Informations

About future group also search from site future group

Considered a pioneer of modern retail in India, Kishore’s leadership has led the group’s transformation into India’s leading player in the consumption sector. Regularly ranked among India’s most admired CEOs, he is the author of the book ‘It Happened in India’. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of a number of bodies, including the National Innovation Foundation in India and New York Fashion Board.

Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day.

Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow.

Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth.

We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soar once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.

ServicesWhile retail forms the core business activity of Future Group, group subsidiaries are present in leisure and entertainment, brand development, retail real estate development, retail media and logistics. Some of our other businesses include, mobile telephony brand, T24, operated in association with Tata Teleservices, a supply chain and logistics infrastructure company, and a company engaged in providing educational and training services through three Future Innoversity campuses in Ahmedabad, Bangalore and Kolkata.

FinanceIn the financial space, our group companies offer consumer finance and insurance to customers, as well as corporate loans and equity investments to companies engaged in consumer businesses.

Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today our core values continue to guide how we do business and improve the quality of life of the people we serve.

At Future Group we are committed to being a catalyst of positive change in the communities, societies and business sectors in which we operate.  We envision India’s transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights.  

We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community.

Our Mission

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination

shall be the driving force to make us successful.

Our Values

Indianness: Confidence in ourselves. Leadership: To be a leader, both in thought and business. Respect & Humility: To respect every individual and be humble in our conduct. Introspection: Leading to purposeful thinking. Openness: To be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: To build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: To be flexible and adaptable, to meet challenges. Flow: To respect and understand the universal laws of nature.

Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day.

Food Bazaar - Supermarket chain

eZone - Electronics superstore

HomeTown - Home improvement and building materials store

Central - Seamless department store

Planet Sports - Sportswear retailer

Aadhar - Rural retail chain

KB’s Fairprice - Urban low-frills neighbourhood store

Futurebazaar.com - Shopping portal

StrategyA new normal is being defined in the Indian consumer market every day. With far-reaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast.

With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead India’s consumption story with sustainable value creation.

Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We understand the varied buying behaviour of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences.

Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levers

Customer-orientation

The bottom line in each of our retail success stories is "know your customer". Insights into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally.

Continuous-innovation

As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences.

Collaborative transformation

Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customers which in turn fosters matual growth.

 

We believe that modern Indian retail rests on the strength of two pillars – scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers.

Our retail thrust is focussed on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this,

we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals.

India’s retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country, that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.

Milestones25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-heartedly believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our enduring values.  

2011 April 2011 – KB’s Fairprice celebrates opening its 200 stores in India May 2011 – Future Supply Chains becomes ISO certified

2010 Future Group launches its telecom brand T24 in partnership with

Tata Teleservices to provide additional loyalty benefits to its customers.

Future Group launches products in key FMCG categories through Sach, a brand co-created with Sachin Tendulkar.

Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.

2009 Future Group celebrates its first Shopping Festival across all retail

formats in key Indian cities. Future Innoversity starts its campuses in Ahmedabad, Bangalore and

Kolkata to offer degree programs through a tie-up with IGNOU. Future Group partners with Hong Kong-based Li & Fung Group to

strengthen its supply chain and logistics network across the country.

2008 Future Capital Holdings becomes the second group company to make

a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest

expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet

mark. Future Group acquires rural retail chain Aadhar from the Godrej

Group, which has a presence in 65 rural locations.

2007 Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand

development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at

US-based National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

Online portal Futurebazaar.com becomes India’s most popular shopping portal.

2006 Future Capital Holdings, the group’s financial arm, is formed to

manage over $1.5 billion in real estate, private equity and retail infrastructure funds.

Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar.

Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali.

Future Group forms joint ventures with US office stationery retailer Staples.

2005 Future Group moves beyond retail and acquires a stake in Galaxy

Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, India’s first real estate investment fund,

to build a chain of shopping malls.

2004 Future Group launches India’s first seamless mall, Central, in

Bangalore.

2002 Food Bazaar, the supermarket chain is launched.

2001 Future Group launches three Big Bazaar stores within a span of 22

days in Kolkata, Bangalore and Hyderabad.

1997 Future Group enters modern retail with the launch of the first 8000-

sq. ft. store Pantaloons in Kolkata.

1995 Future Group launches John Miller, a brand for Formal shirts.

1994 The Pantaloon Shoppe, Future Group’s exclusive menswear store in a

franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.

1992 Pantaloon Retail India Ltd makes an Initial public offer (IPO).

1991 BARE, an Indian denim brand is launched.

1987

The company is incorporated under the name of Manz Wear Private Limited.

Pantaloons, one of India’s first formal trouser brands,is launched.

RetailWinning the Hearts of Indian Consumers

Future Group was conceived as a force to drive domestic consumption and capture every addressable need of Indian consumers.

Future Group makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires.

We operate some of India’s most popular retail formats. Across value and lifestyle segments, our multi-format retail strategy caters to the complete consumption needs of a wide cross-section of Indian consumers.

LifestyleStyle for Every Occasion

ValueHelping India Save

HomeBuilding Dreams in a New India

DigitalConnecting the Youth of India

As modern retail drives fresh demand and consumption in new categories, our strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format. Future Group offers innovative offerings at affordable prices tailored to the needs of every Indian household.

Pioneers in the India’s retail space, our formats are household names in more than 85 cities and 60 rural locations across the country

Our stores cover around 15 million square feet of retail space and attract around 220 million customers each year

Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the Pantaloons and Central formats

Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaar and KB’s Fairprice formats

Our Universe

As India’s leading multi-format retailer Future Group inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day.

Future Group comprises operating businesses in three sectors: Retail, Allied Services and Finance. Leveraging a strong understanding and knowledge of Indian consumer preferences, habits and aspirations, we have built some of the most respected retail brands in the country.  Our retail business across the value and lifestyle segments focuses on 4 key consumption verticals: food, fashion, general merchandise and home.

Retail

Finance

Services

While retail forms our core business activity, our group’s subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, real estate development, retail media and logistics.

We have aligned our business opportunities with the broad objective of being a catalyst in India’s consumption-led growth. In line with leading retailers of the world, Future Group aspires to capture a significant portion of India’s consumption and contribute to a significant proportion of our GDP. As the Indian economy matures, it is upon us to lead India’s consumption story, achieving inclusive and profitable growth with sustainable value creation.

Statutory Labour laws in india…

Relevant Labour laws in Indian retail industry….

Stages of statuory compliance…..

Statuory compliance in retail industry…..

Statutory compliance in Future group….

Now company specific…. Labour laws followed here in future group….

To what extent they are implemented…..

Any data if available, audits….

Observations, improvements, recommendations/suggestions….

Do we provide employee handbboks in our organization….

If yes then are all employees well aware of these laws??

Do they apply these laws in their work culture…

And to what extent…

Does the organization do anythn to make them aware of these laws…

Does d organization comply with these laws, n to what extent…

Give me practical knowledge and figures for my project…..

Company profile……

Hr activities in the organization

Executive Summary……….