Corporate governance of banks

The corporate governance of banks is different and unique from that of the other organizations. This is because the activities of the bank are less transparent than other organizations. Thus, it becomes difficult for shareholders and creditors to monitor the activities of the bank. The situation becomes even more difficult when a major part of the share capital is with government. Additionally, banks also differ from most other companies in terms of the complexity and range of their business risks, and the consequences if these risks are poorly managed.

The Banking Sector in India has definitely not remained unaffected to the developments taking place worldwide. Enhancing the level of corporate governance structure of Indian banks is imperative. The regulatory bodies in India are the Reserve Bank of India and the Securities Exchange Board India. The RBI prescribes prudential principles and norms. The RBI performs the corporate governance function under the Board for Financial Supervision (BFS).

The Basel Accord was first established in 1988 by the Basel Committee on Banking Supervision under the Bank for International Settlements. The BIS was established on 17 May 1930 and is the world's oldest international financial organization. The Basel Committee was established by the central-bank Governors of the Group of Ten countries in 1974. It meets regularly four times a year. It has four main working groups. The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.

The Basel Accord was established to provide a set of minimum capital requirements to banks. According to this accord, the banks would be required to maintain a minimum capital requirement a propos the loans given out by them. The 1988 Basel Accord also known as Basel I primarily focused on credit risk. The Central Banks of several countries that have agreed to become signatories have been given the responsibility of enforcing the provisions. In India, the Reserve Bank of India shoulders this responsibility.

The second of the Basel Accords, Basel II was first published in June 2004 and established in 2005. This accord widened the scope of Basel I by establishing capital requirements for market risk and operational risk, in addition to credit risk. Basel II also included provisions which allowed banks to use advanced statistical methods to compute possible losses for which they were required to hold capital. Therefore, international banks had an advantage as they could lower their capital requirements through the use of advanced models.

The third of the Basel Accords, Basel III was created in response to the flaws in financial regulation which led to the crisis and also due to appeals for the reform of capital adequacy and liquidity standards for banks.

According to the Basel Committee Report of 1999, Banks have to maintain a certain level of transparency and disclosures in their statements. The annual report should disclose a number of factors relating to the operations of the banks such as accounting ratios, business per employee, related party disclosures and information.

Recent Steps Taken by Banks in India for CG

•                   Induction of non-executive members on the boards

•                   Constitution of various Committees like Management committee, Investor’s Grievances committee, ALM committee, etc.

•                   Role of Independent auditor

•                   Gradual implementation of prudential norms as prescribed by the RBI,

•                   Introduction of Citizens Charter in banks

•                   Implementation of “Know Your Customer” concept

•                   The Board of Directors and top management of the Bank are chiefly responsible for good CG.

Frauds by others

•                   Forgery and altered cheques -This type of fraud involves altering the amount on the face of a cheque for nefarious purposes

•                   Stolen cheques -This type of fraud is initiated by the theft of a few cheques. Then accounts are opened using fake identities, and the suitably altered stolen cheques are deposited, followed by convenient withdrawal of the amount. In a similar way, stolen blank cheque books are misused by fraudsters.

•                   Accounting fraud -Overstating sales and income, dishonest accounting and inflating the worth of the company’s assets to hide that the company is actually functioning in loss constitute Accounting Fraud. E.g., Satyam.

•                   Credit card fraud - Credit cards lend themselves to several opportunities for fraud. Made of three PVC sheets, of which the central sheet is known as the core stock, credit cards carry substantial data. Credit card frauds can be carried out in several ways.

•                   Frauds committed by auditors

•                   Power of Attorney fraud- A “Power of Attorney” (“POA”) is a legal document through which the donor grants the power to his attorney to ‘step into the donor’s shoes’ and conduct legal and financial matters on the donor’s behalf.

•                   Phishing- In this type of fraud, sensitive data such as account numbers, login Independent Directors (IDs), passwords, and other verifiable information are extracted from gullible individuals either through fraudulent telephone calls or emails. These data are then misused for dishonest purposes, including identity theft. Phishing is most often perpetrated through mass emails and spoofed websites.

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Competition Commission vs Small Medium Enterprises

The Competition Commission of India and Small and Medium Enterprises (SMEs)

The Small and Medium Enterprises (SMEs) have been globally recognized as a priority sector for growth and development and India is not an exception to this generality. In India, the Micro, Small and Medium Enterprises (MSMEs) contribute over 45 percent of the country s industrial production and around 40 percent of total exports. The SMEs increase competition, contribute comprehensively by the GDP ensure varied supply of goods and services and give customers wider and customized choice. Thus MSMEs unhesitatingly play a vital role and in fact they are the backbone of the Indian economy and prudence suggests that the backbone not only be protected but strengthened too on a perennial basis.

Small and Medium Enterprises (SMEs) needs to know

What SMEs needs to know is that the law is applicable to them as well. The focus of law is not on “size of the enterprise” which could be in terms of assets /turnover or investment in plant and machinery etc. but on the effects of business practices on competition in the relevant market in India. However, it is unlikely that SMEs would unwittingly fall foul of the law. On individual basis, since SMEs lack market power, their actions are not likely to have appreciable adverse effects on competition in India. Moreover, the exclusions and exemptions from the applicability of law are likely to dilute the effectiveness of competition law which is increasingly believed to be benign for consumers, enterprises as well as economies.

Power of Small and Medium Enterprises (SMEs)

A SMEs or an Association can file information in the prescribed form with the CCI and request for enquiry against any delinquent enterprises in case the latter is allegedly indulging in anti-competitive practices/ agreement or abuse the dominant position. SMEs can also file objection with the CCI in response to public notice or otherwise against any proposed acquisition, merger or amalgamation as sometimes a survival of SME is threatened. Thus, there is an obligation on the CCI to listen to the aggrieved SMEs.

Competition Commission of India and Competition Appellate Tribunal (COMPAT)

The Amendment made to the Act in 2007, casts an obligation upon the Central Government to establish Competition Appellate Tribunal (COMPAT), which shall be a three member quasi –judicial body to

•Hear and dispose of appeals against any direction issued or decision made or the Order passed by the Commission;

•Adjudicate on any claim for compensation that may arise from the findings of the Commission or the Orders of the Appellate Tribunal in an appeal against any finding of the Commission or under section 42A or sub-section (2) of section 53Q of this Act, and pass Orders for the recovery of compensation under section 53N of the Act.

The Competition Appellate Tribunal will be guided by principle of natural justice and it can regulate its own procedure. COMPAT can dismiss a petition for default or decide it ex parte and such order of dismissal or ex parte order can be set aside. The proceedings before COMPAT are deemed to be judicial proceedings. If Appellate Tribunal cannot execute its order, it will be sent to Court within whose local jurisdiction the registered office of the company or place of residence of the person is situated. Order of the C OMPAT will be executed as a degree of court. COMPAT can directly send the order to a civil court for execution. The order will be executed by that Court as if it is a decree of that Court.

Procedure for Investigation of Combination by the Competition Commission of India

On coming to a prima facie opinion that the combination is likely to cause or has caused appreciable adverse effect on competition within the relevant market, the commission shall issue a show cause notice to parties to the combination calling upon them to show within 30 days of receipt as to why investigation of such combination should not be conducted. After the receipt of the response from the parties, the commission may call for a report from the DG within the time as may be specified.

Orders that CCI can pass in respect of Combinations

The commission is empowered to pass the following orders after the due process:

a)        Approve the combination where no appreciable adverse effect on competition in the relevant market in India;

b)        Direct that combination shall not take effect where the Commission is opinion that there is or is likely to have appreciable adverse effect on competition;

c)        Propose modification in the combination where the commission is of the appreciable adverse effect cause or likely to be caused by the combination can be eliminated by the modification.

Competition Law and Leniency Provisions

Most competition laws either exempt specific sectors and/ or types of economic activity, and /or have provision s for the granting of such exemptions in given situations. It is worth observing that there generally tend to be fewer exemptions in countries which have recently adopted competition laws (mainly developing and transition market economies) as compared with more industrialized nations. In India the Competition Commission of India ,While passing orders in respect of cartels , the Commission is vested with the discretion to impose a proportionate /lesser penalty than leviable under the Act upon a producer, seller, distributor, trader or service providers, provided the following conditions are met;

1.        Such producer, seller, distributor, trader or service provider included in the cartel had made full and true disclosure in respect of the alleged violations and such disclosure is vital.

2.        Such disclosure has been made before receipt of DG s report on investigation order under section 26 of the Act

3.        The party making disclosure s continues to co-operate with the Commission till the completion of proceedings before the commission.

4.        The party making disclosure s has;

a)        Complied with the condition of which the lesser penalty was imposed and

b)        Not given false evidence.

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FINANCIAL INFORMATION TRANSPARENCY

FINANCIAL INFORMATION AND TRANSPARENCY RELATED DISCLOSURE FOR GOOD CORPORATE GOVERNANCE

1)        Financial Calendar

2)        Listing of Shares in Stock Exchange

3)        Details of Shareholders/ Shares

4)        International Listing

5)        Stock Market Data (Share Price Volatility)

6)        Share Transfer Process

7)        Dividend Payment

8)        Special Resolution by Postal Ballot

1)     Financial Calendar:

In all the companies disclosure of financial calendar include following data:

•Financial Calendar •Date, Time and Venue of Last Annual General Meeting •Book Closure Date •Dividend Payment Date •Date of Posting of Annual Report •Last Date of Receipt of Proxy forms •Approval Date of Quarterly Results •Stock Code •Special Resolution of Postal Ballot •Reporting on Conciliation of Account GAAP •Board Meeting Date •Probable Date of Dispatch of Warrants for Dividend

2)     Listing of Shares in Stock Exchange:

Listing means admission of securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government, quasi-governmental and other financial institutions/corporations, municipalities, etc.

The objectives of listing are mainly to:

•          Provide liquidity to securities;

•          Mobilize savings for economic development;

•          Protect interest of investors by ensuring full disclosures.

3)     Details of Shareholders/ Shares:

Following details of shareholders/shares are disclosed in sampled companies include:

•                   Name of Investors/Shareholders

•                   Number of shares and number of Shareholders

•                   Percentage of total shares and total Shareholders

•                   Percentage of Share Capital

•                   Amount of Shareholding

•                   Shareholding of Nominal Value

•                   Number of Shares held in demat form

4)     International Listing:

GDR (Global Depositary Receipt):

A global depositary receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.

A financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.

ADR (American Depositary Receipt):

An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction. This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in Euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on the NYSE, AMEX or Nasdaq as well as OTC.

5)     Stock Market Data (Share Price Volatility):

Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. Stock price volatility is an indicator that is most often used by options traders to find changes in trends in the market place. There are two main types of stock volatility including Historical Volatility and Implied Volatility that are used in the options markets. The increase or decrease in volatility results from changes in investors emotions in the market place. More specifically greed and fear in the market place are the two main factors that cause stock prices to change. Stock price volatility tends to rise when there is new information released in the markets however the extent to which it rises is determined by the relevance of that new information as well as to the degree in which the news surprises investors.

6)     Share Transfer Process:

The shares of a company are movable property and are generally freely transferable. Though there might be certain restrictions on transfer of shares of private companies provided in the articles of the company, such restrictions are generally added to protect the rights of one set of investors or the shareholders. However, shares of a public company are always freely transferable. Here, researcher has taken 3 aspects of share transfer process which are normally disclosed in sampled companies.

•          Shares in physical form

•          Share transfer is allotted agent

•          Time period for share transfer process

Power of refusal to register transfer of shares is to be exercised by the company within thirty (30) days from the date on which the instrument of transfer or the intimation of transfer, as the case may be is delivered to the Company.

7)     Dividend Payment:

The term ‘dividend’ has been defined under Section 2(35) of the Companies Act, 2013. The term “Dividend” includes any interim dividend. It is an inclusive and not an exhaustive definition. According to the generally accepted definition, “dividend” means the profit of a company, which is not retained in the business and is distributed among the shareholders in proportion to the amount paid-up on the shares held by them.

8)     Special Resolution by Postal Ballot:

Applicable for E-Voting:

•                   Every listed company or

•                   A company having not less than one thousand shareholders shall provide to its members facility to exercise their right to vote at general meetings by electronic means.

•                   E-Voting Period:

•                   The e-voting shall remain open for not less than one day and not more than three days.

•                   In all such cases, such voting period shall be completed three days prior to the date of the general meeting.

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THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

The Real Estate (Regulation and Development) Act, 2016 which seeks to protect home-buyers as well as help boost investments in the real estate industry.

Coverage of this act:-

Ø The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution

Ø For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed.

PROTECTION OF BUYERS

Ø The Act prohibits unaccounted money from being pumped into the sector and as of now 70 per cent of the money has to be deposited in bank accounts through cheques.

Real Estate Regulatory Authority and Appellate Tribunal

It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time frame was indicated in earlier Bill.

Certain areas to be exempted from the RERA

Ø The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. Where the area of land does not exceed to 500 square meters or the no. of apartments does exceed to be developed.

Ø Provided that: If the appropriate government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be.

Ø Promoter has received the completion certificate for real estate project prior to commencement act.

REAL ESTATE REGULATORY AUTHORITY

Ø  Authority is established and incorporated under section 20. According to section u/s 35 Authority has power to take sue motto complaints and inquire against information and conduct the enquiry or invest on that matter. Authority can take cognizance on the sue motto if they necessary to so.

Ø According to section 36 interim order cabs are passed by the authority. 

Ø  Authority can be issue direction u/s 37.

Ø Authority has power u/s 38 to impose the penalty or interest.

Ø Authority has power to rectify its order any time within a period of 2years from the date of order made u/s 39.

If somebody does not agree to the direction or order of Authority then that person can file an appeal under REAL ESTATE APPELATE TRIBUNAL.

REAL ESTATE APPELATE TRIBUNAL

Ø REAL ESTATE APPELATE TRIBUNAL is established under section 43. As per s.43 (5) appeal of promoter would be entertained only on depositing at least 30% of the penalty on higher percentage determined by the appellate tribunal.

Ø As per section 44(5) appellate authority should be endeavor to dispose off the appeal within a period of 60days from the date of receipt.

Ø As per section 58 appeals can be filled against Appellate Tribunal within 60 days of communication of the order of the Appellate tribunal. In case of delay adequate reasoning is required.

OFFENSES AND PENALITIES

Ø As per section 59(1) punishment for non registeration u/s 3 for promoter would be penalty which may extend up to 10% of the estimated cost of the Real Estate Project as determined by the Authority.

Ø As per s.59(2) if the order passed u/s 59(1) is not complicated then promoter shall be punishable with imprisonment for a term which may extended up to 3yrs or with fine which extend to further 10% of the estimated cost of the project.

Ø As per s.60 the penalty for contravention of s4. of promoter would be penalty which may extend up to 5% the estimated cost of the Real Estate Project as determined by the Authority.

Ø As per the s.61 penalty for the contravention of provision of this act and rules other than s.3 and s.4 for the promoter shall be a penalty which may extend to 5% of the estimated cost of the real estate project as determined by the authority

Ø As per s.62 non registration and contravention u/s 9 and 10 done by Real estate agent, in such case he shall be liable to a penalty of rs10000 for everyday during such default continues, which may cumulatively extend up to 5%of the cost of the plot, apppartment or building, as the case may be, of the Real estate project, for which the sale or purchase has been facilitated as determined by the authority.

Ø As per s.63 penalty for failure to comply with the order of Authority would be penalty for everyday during which such default continues, which may cumulatively extend up to 5% of the real estate project as determined by the authority

Ø As per s.64 punishment for contravention of order of Appellate Tribunal by promoter shall be imprisonment for term which may extend up to 3yrs or fine for everyday during which such default continues, which may cumulatively extend up to 10% of the estimated cost of the real estate project or with both.

Ø As per s.65 penalty for failure to comply with order of the Authority by the real estate agent shall be a penalty for everyday during which default continues, which may cumulatively extend up to 5% of the estimated cost of plot, apartment or building or the case may be.

Ø As per s.68 punishment for the failure to comply with order of Authority by allottee shall be imprisonment for a term which may extend up to one year or with fine for everyday during which default continues, which may cumulatively extend up to 10% of the plot or with both

Ø As per the compounding of offences can be done either before or after institution of prosecution before court and any payments of sum shall not in any case, exceeded the maximum amount of the fine which may be imposed for the offense so compounded.

Ø As per section s.80 cognizance of offence can be taken by court on a complaint in writing made by the authority or by any officer of the authority duly authorized by it for this purpose.

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Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.

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Legal Framework for Corporate Social Responsibility

With the introduction of companies’ act 2013, India has become first country to mandate CSR. The fact that CSR initiatives are taken voluntarily, has been ignored and the act has provided for compulsory spending on CSR.

As per section 135 of the new act, Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a CSR committee of the board consisting of three or more directors (at least one shall be independent director). The committee shall

1.        Formulate and recommend to the board a CSR policy

2.        Recommend the amount of expenditure, and

3.        Monitor the CSR policy.

The Companies Act 2013 encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. The ministry’s draft rules, that have been put up for public comment, define net profit as the profit before tax as per the books of accounts, excluding profits arising from branches outside India

Applicability: Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

•The Board's report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.

The Corporate Social Responsibility Committee shall,—

•Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;

•Recommend the amount of expenditure to be incurred on the activities referred to in clause (a)

•Monitor the Corporate Social Responsibility Policy of the company from time to time.

SOCIAL RESPONSIBILITY AND RELATED DISCLOSURE:

1)        Means of Communication

2)        Various Social Responsibilities fulfilled by Company

3)        Customer care Grievance

4)        Financial Risk Management

5)        Business Environmental Responsibility

Economic growth is possible only through consumption of inputs available in the environment and society. The harnessing of natural resources has a direct impact on the economy, the environment and society at large. Corporate Social Responsibility (CSR) is a concept whereby organizations serve the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. Corporate social responsibility is not about just giving randomly but about bringing benefits to all the stakeholders, including customers, employees and community at large.

•Respect for Worker’s Right and Welfare: The companies should provide the workplace environment that is safe, hygienic and humane to work. They should be taken care of the heath issues arising out of the work of the organization. It should conduct the training and development program within the organization for the people of the organization.

•Woman Empowerment: Empowering women and achieving gender equality – the goals of the Women’s Empowerment Principles - requires intentional actions and deliberate policies. The WEPs are based on concrete business practices and have inspired companies around the world to tailor existing policies and programmes – or establish needed new ones – to realize women’s empowerment.

 Corporate Social Responsibility Dimensions

•Sport Promotion: These include CSR initiatives and investments in the sector by leading corporate houses, and non-profit foundations. These foundations are chiefly involved in providing opportunities to children from the under-privileged sections to take up sports, supporting promising sportspersons in accessing world class training facilities and developing sporting infrastructure.

 •Employment Generated: Jobs continue to be created, needing an educated workforce and many in sunrise sub-sectors. We need to recognize new opportunities and prepare the supply side.

•Educational Employee Training: Employee training and development is a broad term covering multiple kinds of employee learning. Training is a program that helps employees learn specific knowledge or skills to improve performance in their current roles.

•Employee Grievance: refers to the dissatisfaction of an employee with what he expects from the company and its management. A company has to provide an employee with a safe working        environment, realistic job preview, adequate compensation, respect etc.                       

•Benefits of Employee Welfare: They provide better physical and mental health to workers and thus promote a healthy work environment. Facilities like housing schemes, medical benefits, and education and recreation facilities for worker's families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.

•Increased Sales and Customer Loyalty: The customers also recognize those companies which are socially responsible. This results in increased sales and content customers.

•Complaint Received During the year: A customer complaint highlights problems with employees or internal processes and you can fix them before further problems arise and cause a bad customer experience. One of the advantages of CRM is that you can keep a record of customer feedback, both positive and negative.

•Complaint Resolved: The complaint is closed as Resolved because the provider has met the member's request for resolution to the complaint (as outlined on the Complaint Resolution Process complaint form).

•Complaint Pending: The complaint is currently in process. No final outcome has been determined.

•Investor Education and Protection Fund (IEPF): is for promotion of investors’ awareness and protection of the interests of investors. This website is an information providing platform to promote awareness, and it does not offer any investment advice or evaluation.

•Financial Risk Management             

Financial Risk Management is           the practice of economic value in a firm by using financial instruments to manage  exposure  to risk, particularly credit risk and market risk. Other types include Foreign exchange risk, Shape risk, Volatility risk, Sector risk, Liquidity risk, Inflation risk, etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them. Profit Risk is a risk management tool that focuses on understanding concentrations within the income statement and assessing the risk associated with those concentrations from a net income perspective.

•Legal Risk Management

Legal Risk Management refers to the process of evaluating alternative regulatory and non-regulatory responses to risk and selecting among them. Even with the legal realm, this process requires knowledge of the legal, economic and social factors, as well as knowledge of the business world in which legal teams operate. In an organizational setting, risk management refers to the process, by which an organization sets the risk tolerance, identifies potential risks and prioritizes the tolerance for risk based on the organization’s business objectives, and manages and mitigates risks throughout the organization.

•Risk Management

Risk Management and Internal Control help organizations understand the risks they are exposed to, put controls in place to counter threats, and effectively pursue their objectives. They are therefore an important aspect of an organization’s governance, management, and operations. Professional accountants can and should play a leading role in helping their organizations achieve an integrated, organization-wide approach to risk management and internal control—which ultimately helps create, enhance, and protect stakeholder value.

Business Environmental Responsibility

The companies are required to utilize the Planet i.e., Natural Capital in a well manner so that it cannot be wasted, excess utilized which is also required for the other states or countries and also requires to be preserve for the future generation.

Environmental management system that offers a framework that companies and organizations can follow in order to set up an effective environmental management program. Its certificate means that the company or organization is measuring and reducing its environmental impacts. Sustainability Report is used by companies to communicate their economic, environmental and social activities to depict transparency and compliance to rules and regulations.

•Audit of Environment: There are three main types of audits which are environmental compliance audits, environmental management audits to verify whether an organization meets its stated objectives, and, functional environmental audits such as for water and electricity.

•Pollution Control: Pollution prevention is a major global concern because of the harmful effects of pollution on a person’s health and on the environment. Environmental pollution comes in various forms, such as: air pollution, water pollution, soil pollution, etc.

•Project Location and Development: Project management is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria.

•Forest and Plantation of Tress: Industrial plantations are actively managed for the commercial production of forest products. Industrial plantations are usually large-scale. Individual blocks are usually even-aged and often consist of just one or two species. These species can be exotic or indigenous. The plants used for the plantation are often genetically altered for desired traits such as growth and resistance to pests and diseases in general and specific traits.

•Plants having Child Labour: The social scenario, however, changed radically with the advent of industrialization and urbanization under the impact of the newly generated centrifugal and centripetal forces; there was an unbroken stream of the rural poor migrating to urban center in search of livelihood. The child had to work as an individual person either under an employer or independently. His work environment endangered his physical health and mental growth and led to his exploitation. The protection and welfare of these children, therefore, become an issue of paramount social significance.

We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.

Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.

Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.

Contact at parascs@gmail.com or refer website www.pnjlegal.com