Statutory & Regulatory Compliances
Statutory means “of or related to statutes,” or what we normally call laws or regulations. Compliance just means to comply with or adhere to. So statutory compliance means you are following the laws on a given issue.
Complying with Central and State Acts and Regulations to keep your company safe from legal trouble has never been more demanding. And now, through Legal Research, it has become easier. Our Corporate Compliance Services are the effective solutions that can lower your compliance “risk profile”, reduce fines, reassign headcount, enable a better and higher use of limited law department resources, save measurable cost and improve effectiveness.
We provide industry leading legal research & compliance advice to enable leading corporates and organizations to comply with legal requirements and other regulations while also identifying potential loopholes, for liability in the Company or organization. Advise on mitigation of such risk and formulating customized guidelines.
For example, you might have omitted to take note that under the “Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, your company is potentially liable for penalties if you do not obtain Registration under the said Act.
We conduct the verification exercise of various Acts and Regulations which are either Central Acts or State Acts and are related to either Labour or Finance, or Economic, or are of pure technical in nature for the due diligence of our Corporate clients. Few Acts are Central Acts with State regulations.
Some of the labour and related administrative laws as well as Economic Legislations are :
a. Factories Act (Act 63 of) 1948
b. Workmen Compensation Act (Act 08 of) 1923
c. Minimum Wages Act (Act 11 of) 1948
d. Payment of Wages Act (Act 04 of) 1936
e. Industrial Disputes Act (Act 14 of) 1947
f. Payment of Gratuity Act (Act 39 of) 1972
g. Payment of Bonus Act (Act 23 of) 1971
h. Employees’ Provident Fund and Miscellaneous Provision Act (Act 19 of) 1952
i. Employees State Insurance Act (Act 34 of) 1948
j. Building and other Construction Workers (Regulation of Employment and Conditions of service) Act (Act 27 of) 1996
k. Building and other Construction Workers Welfare Cess Act (Act 28 of) 1996
Acts of Pure Technical Nature include
a. Industrial Development and Regulation Act (Act 65 of) 1951
b. Indian Contracts Act (Act 09 of) 1872
c. Indian Stamps Act (Act 02 of)1899
d. Competition Act (Act 12 of) 2003
e. Foreign Trade (Development And Regulation) Act (Act 22 of) 1992
f. Consumer Protection Act (Act 68 of) 1986
g. The Power of Attorney Act (Act 7 of) 1882
h. Electricity Act (Act 36 of) 2003
i. The Legal Meteorology Act (Act 1 of) 2010
j. The Essential Commodities Act (Act 10 of) 1955
k. Customs Act (Act 52 of) 1962
l. The Environment (Protection) Act (Act 29 of) 1986
m. The Energy Conservation Act (Act 52 of) 2001
Other Economic and Financial as well as administrative Acts include
a. Companies Act (Act 01 of) 1956
b. Income Tax Act (Act 43 of) 1961
c. Foreign Exchange Management Act (Act 42 of) 1999
d. Central Excise and Salt Act (Act 79 of) 1985
e. Service Tax regulation
f. Local and Central Sales Tax Act of various States
g. Accounting Standards specified by Companies Act as well as by the Institute of Chartered Accountants of India
h. Secretarial Standards specified by The Institute of Company Secretaries of India
i. Export and Import Procedures as specified
j. Shops and Establishment Act
We conduct audit of compliances of above laws together with special laws relating to the industry and procedures at the units of our clients located at different places as required by them and at Head Office. The audit is carried out for periods as have been fallen due prior to due commencement of the exercise.
This compliance monitoring exercise can be undertaken once a year and depending upon the observations same may be carried on at such intervals as may be decided by the Management as per the SEBI guidelines under Sub-clause 1(C)(iii) of Clause 49 of the Listing Agreement which provides “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”. Further, as per Annexure I A clause 15 of the said circular it is mandatory to place quarterly before the Board of Directors the information as to Non-Compliance of any regulatory, statutory or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer, etc.
By the said SEBI circular the Stock Exchanges have been directed by the SEBI to set up a separate monitoring cell with identified personnel to monitor the compliance with the provisions of the revised Clause 49 on corporate governance and to submit a consolidated compliance report to SEBI within 60 days from the end of each quarter.
Our team may visit all the locations / units of our corporate clients for verification of the data / compliances as have been provided to us duly certified by the respective heads of departments who are in charge for ensuring compliances of respective laws.
Core to good corporate governance is compliance with the laws of the land.
Non-compliance with statutory obligations can result in significant late filing fees for companies, and may even lead to court prosecutions for their directors/managers. We help companies and directors to be compliant