With the advent of the new Companies Act and the process of streamlining the Regulatory framework in India, there are few misconceptions about the Compliance solution and the Framework. Many corporate still have the fear and inhibitions for a full-fledged solution to manage internal and regulatory compliance’s:
- Information can be accessed by anyone
The major misconception about putting up a Compliance Solution is the accessibility of information to anyone and everyone, where as in reality the processes make it tougher for people to access information other than their domain or expertise. With the help of technology the details can be mapped and access can be restricted.
- Creating the Compliance Sheets from scratch
Most of the organizations already have some process of managing the compliances and in most of the cases, excel sheet is being used. The only difference or add-on services which any organizations requires is collating those checklists at one place and uploading in the system.
- It’s an additional work for employees
Aren’t we sending the compliance reports to our management every now and then? As an organization we already have a set process for sending the reports which we seldom miss as the ramifications can be real bad to an extent of even the directors landing in jail for not following up with the laws of the land
- All the change in the law cannot be captured
This is absolutely not the case, did we not increase the Service Tax from 12.36% to existing 15%, the thing is that the major changes are captured easily and is readily available but the minor changes are very tough to find specially for the states where the departments have not gone online, but there are good firms providing compliance services with coverage of almost all the Indian states and UT’s and Legal Updates would cost you a little more than your Manager salary
Most of the misconceptions stem from our way and style of working for years, in the time of strict regulatory environment, where transparency is a must, organizations need a process in place to mitigate these risks and remove these misconceptions.