propo1125sal for legal compliance audit - webcon (1)
TRANSCRIPT
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8/12/2019 Propo1125sal for Legal Compliance Audit - Webcon (1)
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1/2| P a g e L E G A L A U D I T C O M P L I A N C E - - B R I E F O U T L I N E
PROPOSAL FOR LEGAL COMPLIANCE AUDIT
WHY LEGAL COMPLIANCE AUDIT
Section 205 of The Companies Act, 2013 now requires the Company Secretary to report to theBoard about compliance with provisions of all laws applicable to the company
Similar requirements are provided in Clause 49 / Corporate Governance Guidelines requiring theBoard to certify that the structural, legal compliance management system is in place
It also requires that the Board shall periodically review reports prepared and steps initiated torectify instances of non-compliance
OBJECTIVES OF LEGAL COMPLIANCE AUDIT
Review of existing compliance status. Increasing awareness of compliance issues and its impact at unit level Training key managers on Legal Compliance related issues and their implications Laying down policies and procedures to be followed by each unit Improve internal processes and systems Ensuring high level of compliances across the organization
METHODOLOGY OF LEGAL COMPLIANCE AUDIT
Prepare the Legal Compliance Audit Checklist. Location Visit Verify documents, files, registers etc Draw out a list of Non Compliances Draft report and discussion with unit heads and HOD Follow up with units to access action initiated
BRIEF OUTLINE OF LEGAL COMPLIANCE AUDIT
Outline of steps to be followed as :
Steps Broad Areas Delivery Areas
1 Ascertaining theACCOUNTABILITY Matrix
Responsibility Heads for compliance,Delivery & execution compliances,
Regular follow-up & Accountability
2 STATUTORY requirements :State & Central Rules/Actsincluding subsequent
amendments
Step 1 : Record maintenancea. Registers & updation,b. Notices & amendments,c. Routine compliancesd. Statutory payments/updations,
Step 2 : Statute Compliancea. Covering all the 24 relevant law / act of statuteb. Specific Acts/laws of statute specific to location.
3 Health & Safety Rules Compliance with all state & central rules of statute.
Maintenance of records & data.
4 STATUTORY requirementsfor employment of PrivateAgencies & ContractualLabors
Compliance with all state & central rules of statute.Maintenance of records & data.
5 RATING & maintenance Current period RATING for the location / processes,
Follow-up & subsequent period performance monitoring.
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8/12/2019 Propo1125sal for Legal Compliance Audit - Webcon (1)
2/2
2/2| P a g e L E G A L A U D I T C O M P L I A N C E - - B R I E F O U T L I N E
DELIVERABLES OF LEGAL COMPLIANCE AUDIT
Report outlining non compliances and their levels Risk associated with the above Audit Ratings for improvement during future audits
KEY BENIFITS
Saving from PENALTIES Saving of RECURRING COSTS Saving of TIME and LEGAL costs.