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1st Bulletin: Welcome to Aparajita Compliance Solution

Dear Client, Greetings!

With immense pleasure and gratitude, first, we would like to thank you for your continuous support. The thirst in you about Regulatory Compliance Management ( hereinafter called RCM) has motivated us all the way and we are very happy that we could quench a little of it, by keeping you updated with information’s about all kind of regulatory changes / amendments now and then taking place every days. Due to the increasing number of rules and regulations and need for operational transparency, organizations are need to adopt the use of consolidated and harmonized sets of compliance controls. This approach is used to ensure that all necessary governance requirements under various laws both civil and criminal are complied within due date to avoid the unnecessary litigations, penalties, prosecution, damage of goodwill and reputation, withholding and suspension of licenses and permission, duplication of effort and resources.

Thee rules and regulations are so varied in India it is not even possible for the business owner that whether he has been carrying his business in full compliance of laws, the answer to this question is definitely not certain, because he/she is always of the believe that the employees are honestly complying required laws. No doubt all the organizations are complying the laws to certain extent. The answer is only a prospective and not affirmative. The owner of the organization need to have finger tips the level of compliance by his employees in full lest manner and that too in time and further need to ensure that compliance is made in letter and spirit. It warrants periodical review of regulatory compliance by an independent body who is not having vested interest in the organization who will assess the compliance level and report to the top management. This can be compared with the total body scanning of the entire organization to find out the timely ailment to avoid sickness and to prevent damages. This scanning can be carried out depend on the size of the organization at frequent interval of every three months or half yearly basis. Hence this is preventive rather postmortem.

Now, we take pride to inform you that, we are planning to extend our services and that will be possible only with your support.

In view of number of legal changes by way of amendment taking place now and there i.e Recently the Ministry of Environment and Forests (“MoEF”) has taken the first step towards reducing the alarmingly growing menace of pollutants from the information age. The E –Waste (Management and Handling) Rules, 2011 framed under the Environment Protection, Act 1986 were published on May 30, 2011 and have come into effect on 1st May 2012.

It is our endeovours to keep all our esteemed clients updated information’s about all kind of RCM related news. We seek your feedback so as to the contents of the news letter. We would be too happy to have your suggestions for making the newsletter more useful and informative.

What is Regulatory Compliance Management(RCM)

Cent percent regulatory compliance is crucial for any business entities be it Proprietary concern, partnership firm, Private or Public companies. Non-compliance can leads to hefty fines, reputation risks, product recalls or delays in product approval, plant shutdowns, monetary loss, imprisonment etc., in addition to unnecessary waste of time and energy. RCM will bean unbiased examination and evaluation of the various statements of an organization. If you miss you are in mess.

This requires expertise and full time monitoring. Small and medium companies may not afford to appoint experts and hence treating this area in a postmortem manner rather preventive is an unnecessary risk. Simply these kinds of organization hand over the professional work in the hands of an non-professional who is mostly unaware of the day to day changes by way of amendment that are taking place every days. As long as the organization is not receiving any adverse notice from the government bodies they are happy, the moment they organization are under scrutiny of Government bodies the consultant became disappear by leaving the entire risk on the head of owner. It is not a healthy practice and it need to be rationalize by engaging professional and utilizing their timely advises. While the Governing guidelines state that business operations should be conducted within the four corner of the rules and regulations so that the business entities are kept out of trouble; prosecutions, penalties, fines and liabilities are avoided; and in as much as fostering the image of a responsible corporate citizen.

The implementation of RCM does not mean replacement of consultants or retrenchment of employees however RCM is for periodical review of the works so far done by the consultant/employees under various laws so that any error or ignorance of laws can be ratified subsequently well within the period of law of limitation. RCM is designed to minimize the unnecessary litigation with Government bodies and at the same time offer an opportunities to protect the organization’s rights to fight against the unreasonable, illegal demand, penalties prosecutions that are slashed by the government authorities by wrongly interpreting the provisions of laws.

Benefits and Beneficiaries

a) Promoter Shareholders/ Business Owners :-

RCM ensures the business owners those are in charge of management that the business are conducted in accordance within four corner of laws and the owners’ stake is not being exposed to undue risk and thereby saving invaluable time which could be deployed in further planning and development of business.

b) Board of Directors / Management :-

Ensure the management of the company that those who are charged with the duty and responsibilities of compliance with the requirements of law are performing their duties competently, effectively and efficiently, to that the people in charge of the day to day management of the company not likely to be exposed to penal action or other liability (and consequential risk and embarrassment) on account of non-compliance with law. Non compliance of statutory provisions may lead to serious consequence by way of disqualification of directorship/ Managing directorship, imprisonment etc.

c) Independent Directors

Ensure them that the company has complied with the laws and , therefore they are not likely to be exposed to action by law enforcement agencies for non-compliance by the Company.

d) Compliance Officers

Ensure them that they have done every thing required under law.

e) Investors/ Prospective Acquirer

To provide comfort to investors that the company has been conducting its affairs in accordance of laws and therefore, their investment is safe and being taken due care of. RCM will help unearth and check these practices and also enable organization to take timely corrective action by bringing to book the guilty. In the era of Corporate Governance, RCM will provide comfort to shareholders about the compliance as also to feel secure about their investment.

RCM can be an effective due diligence exercise for the prospective acquirer of a company or controlling interest or a joint venture partner.

f) Employees

RCM can empower employees to gauge or measure the levels of compliance and non-compliance by the companies where they are employed. They are likely to be benefited maximum under various labour welfare laws such as EPF,ESI, Bonus, Gratuities, payment of wages act etc.,

g) Government / Government agencies

As we know Government is of the people, for the people and by the people RCM being preventive measure for compliance with a plethora of laws, RCM will have a salutary effect of substantially by payment of taxes and statutory dues to the exchequers which can be used for national development.

It is worth to mention that the remark to the Supreme Court Justice Oliver Wendell Holmes, Jr. that

Taxes are the price we pay for a civilized society.
Taxes are the price we pay for civilization.
I like to pay taxes. With them I buy civilization.

In 1848 a committee report to the State Senate of Ohio emphasized that taxation paid for “social order” [JSOH]:

Rightful taxation is the price of social order. In other words, it is that portion of the citizen’s property which he yields up to the government in order to provide for the protection of all the rest. It is not to be wantonly levied on the citizen, nor levied at all except in return for benefits conferred.

Why we are fit to do RCM

We believe that identifying applicable business, labour, environment laws and implementation of industries specific laws etc. applicable to the organisation is the first stage to initiate the process. Even the Indian Great Chanakya 2000 years ago has quoted:

“All undertakings should be preceded by consultation. Holding a consultation with only one, he may not able to reach a decision in difficult matter. With more councillors it is difficult to reach decisions and maintain secrecy”. (1.15.2,35,40). Therefore sit and counsel with those who are mature in intellect(1.15.21)

Accordingly our organization is comprised of highly qualified and experienced team of professionals in different filed of laws supported by dedicated hands is most competent, fit and proper to advise the compliance in view of strong knowledge of law and procedure. A detailed profile is attached.

Documents to be scrutinized in general are Corporate Documents, Financial Information, Tax Status, Contracts and Agreements, Governmental Regulations, Litigation, Products and Services, Marketing, Management and Personnel, Property and Equipment, Research & Development and Other Company Information and through study will be undertaken based on further discussion with the compliance persons and management.

U.C.Dalai
Chief Executive Officer

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