Compliance Health Check is to diagnose or reboot and avoid the concerns /repercussions compliant company. Regular Health Check helps in early detection and diagnosis of setbacks / non compliances of a company which in leads to huge penalties, prosecution, compounding of non-compliances unnecessarily losing peace of mind on business support function, instead of focusing on operations/ business development.
“GOOD CORPORATE GOVERNANCE IS ABOUT BEING PROPER AND PROSPER”
Good Governance companies are gaining reputation /credibility/ brand in the market. With the integration of world economies at fast pace, compliance is gaining high importance corporates.
Compliant Companies are getting better and bigger business opportunity and creating their space in the global market. Companies aiming to enter capital markets/ foreign markets need to have impeccable compliance track record.
PayTm, LinkedIn, Samsung, Multi-National Companies have to face the heat of non-compliance wherein they have penalized by the Registrar of Companies (RoC) and Reserve Bank of India (RBI).
Non-compliances lead corporates to the position of Insolvency, the classic example for the same is Jet Airways and Go Air etc.
Few examples wherein notice received from regulators for instance in many of the Company it is witnessed that:
- Auditor appointment not done in compliance of law,
- Directors’ appointment and their regularization are not happening on time
- Non-appointment of Key Managerial Persons even after threshold limit got reached,
- not delivering Share Certificates after allotment and non-payment of stamp duty on the same,
- Non filing annual returns within due dates, not holding AGM within due dates
- Inconsistent information/data feeding in annual compliance forms,
- Compliance requirement on company business letterheads, billheads, registered office, non-maintenance of statutory registers/ minutes books/ financial data,
- Irregularities in reporting requirements in financials/ Annual report/ Directors Report/ CSR reporting,
- Periodic reports/ Important Financial and Prudential Parameters to RBI for Financial Sector Companies,
- Non filing of FLA Return, FCGRP reporting when sending or receiving foreign remittances, policy for Preservation of documents,
- Non-Filing of information, Payment of dividend interest, redemption or repayment principal amounts,
- Related Party transaction compliances
- Secretarial Audit, Secretarial Compliance Report, Meeting Compliances/reporting of shareholders and voting, Audit Committee, Risk Management Committee, Corporate Governance report, Annual Information Memorandum etc.
A compliance health checkup is an indispensable practice for any company aiming to ensure legal adherence, operational efficiency, and sustained growth. By systematically evaluating and addressing compliance issues, organizations can mitigate risks, avoid costly penalties, and uphold their reputation in the marketplace. This proactive approach fosters a culture of integrity and accountability, essential for building trust with stakeholders and achieving long-term success.
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