Offering document on

Compliance Management

R & A ASSOCIATES

COMPANY SECRETARIES.

What is Compliance Management….

Compliance is a comprehensive program that helps corporates conduct its operations and activities ethically; with the highest level of integrity, and in compliance with legal and regulatory requirements.

While you are aware that a corporate needs to comply with the Companies Act, Labor Laws, Securities Laws, Factories Act and related legislations, there are many other smaller and industry specific legislations as well as some State laws that tend to get ignored resulting in non–compliance leading to penalties and other consequences Some examples……

i. A pharmacist who sells medicines is required to verify the

purity, standards and quality of Drugs he is selling?

ii. Can one import processed food items without mentioning its

ingredients on its wrapper?

iii. Can one print its own name on the drugs, which are

manufactured by a third party by outsourcing?

iv. Is one required to obtain license for vehicles which carry

drugs from warehouse to medical stores?

Here are the answers……

i. It is the responsibility of the person selling the drugs to be

assured that nature of substance or quality of the drugs are of

standard quality as prescribed in Domestic & Cosmetic Act.

ii. Danisco (India) Private Limited vs Union Of India & Anr. on 13

August, 2014 held that if the goods are not in conformity with the

regulation are not eligible to import into India.

iii. Yes, one can print its own name on the drugs, which are

manufactured by a third party by outsourcing provided it obtains

Loan license as per Drugs and Cosmetics rules.

iv. Yes, one has to obtain license for vehicles which carry drugs from

warehouse to medical stores in Form 20BB and 21BB of Drugs

and Cosmetics act.

Did you know….

That a license should be obtained from GHMC for any advertisements like Hoardings / uni-poles erected at municipal sites, private premises, Government-leased sites including Mobile advertisements under Greater Hyderabad Municipal Corporation Act, 1955?????

That use of misleading terms on packs like Mild/ Lights/ Low tar so as to mislead the consumer about the safe level of tobacco is a violation under the Consumption of Tobacco Products Act, 2003 ?????

Some industry specific laws…..

Dru

gs a

nd

Ph

arm

aceu

tica

l In

du

stry

• Drugs & Cosmetics Act

• Drugs (Price Control) Order Act

• Drugs and Magic Remedies (Objectionable Advertisements) Act

Foo

d P

roce

ssin

g In

du

stry

• Atomic Energy (Control of Irradiation of Food) Act

• Legal Metrology Act

• Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, supply and Distribution) Act

• Food Safety and Standard Act

Simplification……

Initiatives have been taken by Government for simplifying the processes and procedures: Few of such initiatives are ……

Central Government

• Introduction of Goods & Service Tax

(GST).

• Repealing of 90 Acts, which have

outlived their utility.

• Simplifying the norms for FDI in

India.

• Started Shrameva Suvidha Portal for

self-certified single compliance of

16 Central Labour Laws.

State Government

• (TS-iPASS) – Single Window

Clearance Scheme

• Emphasize on self certification.-

under new Industrial Policy

• Incentives and timely

clearances of approvals

• Redressal systems

Benefits of Compliance Management….

Recognition as Good corporate citizen.

Goodwill among the stakeholders.

Enhanced credibility/credit-

worthiness

Better brand image and positioning of the

company in the market

Cost savings by avoiding

penalties/fines and minimizing litigation

Safety valve against unintended non

compliances/ prosecutions, etc.

Real time status of legal/statutory

compliances

Consequences of Non-compliance….

Cessation of business activities

Punitive action resulting in fines

against the company/employees

Imprisonment of the errant officials

Damage to the reputation of the company and its

employees

Unlimited Liability

How does R & A help….

Our service offering includes:

Compliance and Secretarial Audit

Understanding the legal and regulatory requirements of the organization

Reviewing the existing processes to identify, analyse and evaluate the gaps

Preparation of Compliance Manual with procedure on managing compliances

Monitoring and evaluation of the procedures to ensure adherence to the policies and systems

Communication and reporting to the Board on a periodical basis

Labor law audits, compliance, registrations & Licenses

R & A’s Clientele…

Why R & A.…

Highly experienced and dedicated research and execution team This vertical is headed by Ms. Bhavani Raj, Partner who has more than 13 years of rich experience

Successfully handled compliance audit for Medplus group which has business activities spread pan India across 10 states

Successfully handled transaction driven compliances post slump sale, asset transfer agreement etc. for various entities.

Handled single window clearances for some of the clients based in Andhra Pradesh and Telengana.

Closely worked with leading law firms in the matter of compliance management.

It will be R & A’s pleasure to serve you.…

CS. Bhavani Raj Partner

R & A Associates, Company Secretaries.

bhavani@rna-cs.com +91 9666695394

Hyderabad – Head Office

101 Saptagiri Residency, 1-10-98/A Chikoti Gardens, Begumpet Hyderabad - 500 016 Phone: 91 40 4003 2244 – 2247

Branches – Gurgaon

Chennai

Mumbai