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PROPOSAL FOR LEGAL COMPLIANCE AUDIT WHY LEGAL COMPLIANCE AUDIT Section 205 of The Companies Act, 2013

3 now requires the Company Secretary to report to the Board about compliance with provisions of all laws applicable to the company Similar requirements are provided in Clause 49 / Corporate Governance Guidelines requiring the Board to certify that the structural, legal compliance management system is in place It also requires that the Board shall periodically review reports prepared and steps initiated to rectify instances of non-compliance OBJECTIVES OF LEGAL COMPLIANCE AUDIT Review of existing compliance status. Increasing awareness of compliance issues and its impact at unit level Training key managers on Legal Compliance related issues and their implications Laying down policies and procedures to be followed by each unit Improve internal processes and systems Ensuring high level of compliances across the organization

METHODOLOGY OF LEGAL COMPLIANCE AUDIT Prepare the Legal Compliance Audit Checklist. Location Visit Verify documents, files, registers etc Draw out a list of Non Compliances Draft report and discussion with unit heads and HOD Follow up with units to access action initiated BRIEF OUTLINE OF LEGAL COMPLIANCE AUDIT Outline of steps to be followed as : Steps Broad Areas Delivery Areas 1 Ascertaining the Responsibility Heads for compliance, ACCOUNTABILITY Matrix Delivery & execution compliances, Regular follow-up & Accountability 2 STATUTORY requirements : Step 1 : Record maintenance State & Central Rules/Acts a. Registers & updation, including subsequent b. Notices & amendments, amendments c. Routine compliances d. Statutory payments/updations, Step 2 : Statute Compliance a. Covering all the 24 relevant law / act of statute b. Specific Acts/laws of statute specific to location. 3 Health & Safety Rules Compliance with all state & central rules of statute. Maintenance of records & data. 4 STATUTORY requirements Compliance with all state & central rules of statute. for employment of Private Maintenance of records & data. Agencies & Contractual Labors 5 RATING & maintenance Current period RATING for the location / processes, Follow-up & subsequent period performance monitoring.

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LEGAL AUDIT COMPLIANCE--BRIEFOUTLINE

DELIVERABLES OF LEGAL COMPLIANCE AUDIT Report outlining non compliances and their levels Risk associated with the above Audit Ratings for improvement during future audits KEY BENIFITS Saving from PENALTIES Saving of RECURRING COSTS Saving of TIME and LEGAL costs.

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LEGAL AUDIT COMPLIANCE--BRIEFOUTLINE