Overview

Compliance Management in India is Complex. A mid to large sized customer in India deals with a few hundred Acts and a few thousand Compliances. These include Licenses, Registrations, Permissions, Consent Orders, Renewals, Returns, Registers, Payments, Remittances, Challans among others.
In addition, Businesses are dynamic and constantly change. They add new markets, new products and new operating locations to their offerings. As a result, the applicability of Acts / Compliances also constantly changes. The Regulatory environment in India is also fluid. There are approximately 3,000 changes in a year. A number of these changes affect the Compliance obligations of an organisation.

Companies Act, 2013 has brought in provisions for criminal proceedings and Jail term for Directors / KMPs. It requires Directors to devise system for adherence with all applicable compliance and ensure that system is adequate and operate effectively.
SEBI Listing regulation also requires that Board shall periodically review the compliance report covering all applicable laws along with the steps taken to rectify non-compliance.

Today, Organisations in India struggle to provide the assurance as they operate in a highly ad-hoc, paper based and people dependent environment. As a result, they need external expertise to plan, manage, measure and report Compliance Assurance.
The above puts tremendous amount of accountability on Compliance Officers to manage their Compliance Obligations and ensure that the Company Complies with the law of the land. Here are a few key challenges that they face on a day to day basis:



Key Challenges

Avantis Compliance

Complex

Too many Applicable Act / Compliances for the Organisation and Vendors

Avantis Compliance Resources

Resources

Too few dedicated resources working on planning, management & execution

Avantis Compliance Expertise

Expertise

Too much expertise Required to manage the nuances of various applicable compliances

Avantis Regulatory Fluid

Fluid

Too many Frequent Regulatory Changes

Avantis Solution

At Avantis, we feel your pain. We work with hundreds of customers like you across industries, geographic and Business. We have developed deep expertise in helping you keep a close eye on your compliance program and helping you institutionalise accountability, transparency and timeliness . Our team of young and dynamic professionals brings to your organisation the right tools, processes, templates and Access to world class knowledge repository.

Compliance Audit Services – An Overview

Compliance Audit Services

Do you have the right Licenses, Registrations, Permissions and Consent Orders required by your business? Are they renewed periodically?

Are you complying with all the relevant Acts & Compliances?

Are your Returns, Registers, Challans & Other statutory documents prepared and filed accurately?

Do you have the right displays, signages, safety equipment etc as per the law?

Well! The requirements for all the above can run into several thousand across laws in six Compliance Categories; Labour, Environment Health and safety (EHS), Finance & Taxation, Secretarial, Commercial & Industry Specific and three different Levels: Central, State & Local.

Deep expertise is required to understand and interpret the statutory requirements and ensure that you comply with the Law of the Land. Our Services provide periodic assurance under two broad categories:

Applicability Assessment & Gap Reporting

Qualitative Review of Statutory Documents

Our independent assessment helps you avoid missed filings, non-maintenance of critical documents, delays, inaccuracies, data inconsistencies thereby reducing Legal notices, regulatory prosecution, penalties and fines.

Avantis Offering

Compliance Health Check Services

We offer this service periodically or on a need basis. This service aims to conduct a comprehensive As-Is Compliance Assessment of your organisation. This includes:

  • Detailed Review of your Establishment & Business
  • Comprehensive assessment of applicability of Acts and Compliance
    • Acts and Compliance under Central, State, UT, Local Government
    • Industry Specific Compliance
    • Licenses, Registration, Consent Order, Permissions
  • Gap Reporting (Actual vis-à-vis Applicable)
Compliance Health Check Services
Avantis Vendor Audit
Vendor Audit

Vendors Include suppliers of critical raw material, business services, utilities and human talent among others, there are situation where we need to ensure that vendors are in compliance with various Labour laws, Tax laws and local laws. Our Vendor Audit services help you accomplish the following:

  • Identify Acts & Compliances due to your Vendors in context of your relationship
  • Discover Your specific Compliance Requirements from the Vendor
  • Thorough qualitative & quantitative review of all applicable compliances
  • Periodic monitoring and reporting of compliance status of vendors across location
Compliance Framework Audit

Our Compliance Framework audit services provide a holistic review of your organisation’s Compliance culture, readiness and maturity. Here is what we conduct:

  • Compliance program review w.r.t coverage, applicability and correctness
  • GAP reporting of missing compliances
  • Review of performance of product’s existing features
  • Product’s usage and identification of root cause for low product usage
  • Report of existing User mapping against the current usage profiles
  • Verification of documents uploaded in the product
  • Consulting Services for creating a comprehensive Compliance Framework
Avantis Compliance Framework

Scope of Work and Review Coverage

Labour
Avantis Labour Compliance
Labour

416 Acts, over 27,000 compliances and 1400 Fillings.
Defining guidelines covering all aspects of employment like wages, employee’s welfare, working environment, working days including holidays and leaves, Women employment, child labour.

EHS
Avantis EHS Compliance
EHS

61 Acts, over 2,000 compliances and 98 Fillings.
Laws in this category cover aspects usage of specific items like batteries, Bio medical Waste, hazardous chemicals, Solid / e-waste, etc., building / Employee safety (fire, handling of hazardous Substances etc.)

Finance &
Taxation
Avantis Finance and Taxation Compliance
Finance and Taxation

103 Acts, over 9,000 compliances and 692 Fillings.
Laws in this category cover direct taxes (income tax, property tax, corporate tax, etc.) and indirect taxes (GST, customs duty etc.)

Secretarial
Avantis Secretarial Compliance
Secretarial

54 Acts, over 2,000 compliances and 86 Fillings.
Secretarial cover aspects like corporate governance practice, risk management polices / practices, Board constitution and code of conduct of directors and senior management, remuneration of senior management, etc.

Commercial
Avantis Commercial Compliance
Commercial

102 Acts, over 4,000 compliances and 301 Fillings.
Laws in this category cover the trade/ Sale of goods. It also covers legal metrology regulations, food safety and standards, electricity duty, motor vehicle etc.

Industry
Specific
Avantis Industry Specific Compliance
Industry Specific

274 Acts, over 12,000 compliances and 385 Fillings.
Laws in this category regulate specific industries only and are not applicable to other industries. For instance, Drugs and cosmetics act, Poison act, etc. are applicable to the pharmaceutical industry.

Establishment Types

Avantis regtech

Assignment Approach

Compliance is a highly subjective matter. What is applicable to one business may not be applicable to another. The applicability is determined by several factors including Establishment and its Business. The first important step is to determine applicability of all Compliances for the Business. Once the scope of assessment is firmed up, Avantis creates a team of experts and assign it to your review. This is based on the following:

Business Discovery Framework

Avantis team will work closely with your Business leaders to understand the following items:

Avantis Business Framework

Nature of Establishment

Plant / Factory, Office (HO, RO, BO) Leading the requirement of licence, Registration, Consent orders, Permissions

Avantis Nature of Establishment

Nature of Incorporation

Listed, Public limited, Private Limited, OPC, LLP

Avantis NATURE OF INCORPORATION

Nature of Business(s)

Manufacturing / Service

Avantis Nature of Business

Industry / Industries

Automobile, Banking, Healthcare

Avantis Nature-of-Industries

Geographies of Operations

(States / UTs / Municipal Corporations / Municipalities / Gram Panchayats / Zila parishads / SEZ

Avantis Geographies of Operations

Staffing

Full Time Employees / Contract Staffing

Avantis Staffing

Machines / Equipment

(Boilers, Weighing Bridge, Gas Cylinders, Lifts and Hoists, DG Sets, diesel Storage Tanks)

Avantis Machines

Market Serviced

Domestic (State / UTs / Cities), International

Avantis Market-Serviced

Business Discovery Framework

Avantis Compliance Assessment
Compliance Applicability Assessment

Avantis will analyse all the information gathered during the
Business Discovery and do the following:

  • Assessment of applicable Acts & Compliances
  • Identification of all relevant and applicable Licenses, Registrations,
  • Permissions & Consent Orders along with their validity and renewal requirements
  • Preparation draft list of all applicable Compliances
Review of Statutory Documents

Avantis will analyse all the information gathered during the Business Discovery and do the following:

  • Qualitative and Quantitative review on accuracy, timeliness and status of compliance requirement
  • Review of all applicable licenses, registrations, permissions, consent orders, registers, returns, challans, payments & remittances
  • Documentation of all observations categorized by Risk
Statutory Compliance Documents
Compliance Draft Report
Finalization of Draft Report

Avantis team will publish a draft report to management team consisting of all the observations along with commentary of discussion with the relevant local teams.

GAP Reporting

Compliance Risk

Risk

(High / Medium / Low)
Location wise Compliance Management

Location Wise

(Plant / Factory / Low)
Period wise Compliance Management

Period Wise

(Monthly / Quaterly / Half Yearly /Annual)
category Compliance Management

Compliance
Category Wise

Status wise Compliance Management

Status Wise

(Completeness Level)
Timewise Compliance Management

Timeliness
Wise