Company Secretaries- Adding Value through Technology

transcript

CS – Adding Value through TechnologyDecember 27, 2014

You can't expect to meet the

CHALLENGES of today with

YESTERDAY'S TOOLS and expect to be

in BUSINESS TOMORROW.

Information Technology and Business Integration...

“Information Technology

and businesses are

becoming inextricably

interwoven. Indeed

technology has emerged as

one of the primary drivers

of globalization, growth,

service to society and

borderless knowledge

economy comprising

professionals”

““Major corporations

worldwide have used IT to

stay ahead in business.

The competitive edge in

terms of fast information

flow, to support the

business and increase

productivity and

potential of human race

manifold, can be an

important factor

between success and

failure”

“Complexities w.r.t. the

Management,

Governance and

Compliance have

increased manifold in

businesses. IT has already

impacted businesses and

enterprises in India

through e-governance,

e-compliances, e-

filing, e-banking, e-

payments, e-books

and e-commerce”

“As Commerce, which

earlier based on the brick

and mortar model is

moving from the physical

market place into digital

virtual space, the need for

services in the traditional

areas of consulting will

increase on account of

increasing risk and

potential”

es Mobile Telephony

& Internet

Online Banking

E – Commerce

es National E –

Governance Plan

Internal Challenges

More Focus on legal

recognitionLimited

Professional Development

Lack of Entrepreneurial

SkillsLack of Self Confidence

No Mega firm of CS

Strategy

Problem Solving

Corporate

Planning

Procedure

Regulatory shift towards technology

Towards Simplicity

Self Governance

E -Governance

Govt. Initiatives towards ease of business

E-Filing Tax Return

TDS Administration through web based application

Shram Suvidha portal for filing Labour Law return

E-environmental clearances

Government IT initiatives for ease of business and governance

Ministry of Corporate Affairs (MCA) is working to reduce the

timelines to incorporate a company and process of setting up

business in India. It is also planning to centralize the

processing of all registration applicants at one office. Further

with the introduction of concept of One Person Company

(OPC) under Companies Act, 2013, Govt. is attempting to bring

unorganized sector to organized sector.

With ease of doing business in India and benefits of forming

corporate entities, millions of MSME will gradually convert

into corporate and no. of corporate will increase significantly.

Cabinet secretariat driving switch to online applications

for over 200 permits needed to start a business in India.

(Source: ET (28th Nov, 2014)

Its high time for moving legal service industry in India from physical market place to digital space has come because: All existing corporate laws of India like: Company Law, Income Tax, Securities Law, Service Tax, Sales Tax, Labour

Law, Environmental Law etc. are decades old laws and are getting replaced by new law keeping in view theinternational standards. Lots of clarifications, circulars, notifications, different interpretations are bound to arise;

Demographics of India; Penetration of Internet with roll out of 4G technology

Govt. Initiatives towards Legal Industry

Other Government Initiatives

Fully integrated National E –

Governance system by 2019

Aadhaar and National Citizen ID

by 2017

E - Stamping

DIPP e-Biz by 31st

December 2014

Extensive use of Cloud ERP software

by 2017

Broadband highway

andDigital India

Companies Act, 2013 focus towards Information

Technology

E Voting

E Registry

E Recording

Terms used in Companies Act, 2013 Count

Electronic Form (e-form) 84

Electronic Mail 76

Information to be put on website(s) 51

Electronic Mode 40

Electronic Means 26

Video Conferencing 21

Audio Visual Means 20

Electronic Record 19

Electronic Registry 12

Voting by electronic means and electronic voting system 9

Competitive Challenges

Global Competition

CS, CA & CMAcompeting for

same compliance

services

Private institutions

getting recognition -

Private University becoming deemed

university

What brings this Shift

Globalization

Free and fair trade

and vanishing

Economics

Boundaries

UN, WTO, WB, IMF,

OECD, ADB and ICC

are standardizing

rules for

international trade

Single law for trade

and commerce

Technological Advancement

E Commerce wiping out middleman

Made the things more convenient for professionals

Capital & Technology replacing Labor

Consolidation of Market Players

Web based Application, Websites and Mobile Apps

Server Computing

Cloud Computing

Mobile Computing

User Interface

Technology Modes

Social Media

Software / Information web portal

Many More……

Notability

Business Card Manager Lite

Photomania

Bookmyshow Google map

Bhagavad Geeta

How learning process is evolving –

Companies Act, 2013

New Law

Act / Rules / Forms / Circulars / Notifications

E – Books / Groups / Updates

Procedure

Software

FuturePresent

Strategyand

Planning

Will Technology take away our

TECHNOLOGY TRANSFORMATION will

not be WORK DESTROYER rather will be

a WORK CREATOR

TRANSFORMATION is a part of life and has

brought fabulous growth in the past…..

Transformation fromStock Market – Out-Cry-System

Transformation from

Physical Share Certificates to Demated shares

Growth of 613% in Turnover of BSE and NSE observed in last 15 years

457,092

3,257,053

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

1998 2013

Turnover (INR Crores)

MCA21 : Paper based operations to

paper less environment

Out of Total 14 Lacs Companies incorporated in India, near to 6 Lacs Companies

incorporated in last 8 years

over 100 Years and 8 Years

Time Period No. of Companies Incorporated in India

Over 100 Years till 2006 795527

Last 8 Years 574546

With Ease of business, new concept of One Person Company (OPC) and considering

benefits of organized trade as Corporate entities, high conversion ratio of

proprietorship firm to Companies is bound to happen which would increase demand

for Incorporations, Compliances and Legal support in cost effective and efficient

manner.

Govt. MSME records show that

94.41% of the enterprises were

proprietary, 1.18%

partnerships and meagre

0.14% under Corporate form.

Rural areas accounted for 55%

of the total working

enterprises in MSME sector.

Source: Annual Report-MSME 2013 -14

Physical legal opinions Online opinions by experts

Limited physical PresenceGlobal presence through web. Carry

everything on cloud

Document Drafting Online document drafting

Legal updates- emailGoogle

Plus/Facebook/Linkedin/WhatsApp

Physical Registration Complete online registration

Courts/Tribunals e-Courts & Tribunals

Legal process/procedures Complete Automation

Law Books e-Books/websites

Time consuming lengthy process Quick result in few hours

CURRENT PROCESS

FUTURE

Automated

process

Collation of

information from

various scattered

sources

Reports can be

prepared as early

as 4-5 hrs.

Total Time

consumed as

much as 4-5

days…..

CURRENT PROCESS

FUTURE

Presently legal advisory and legal documentation is done by Professionals

in a personalized manner.

No single player in India, who is dedicated to serving MSME, Corporate

and Individuals requiring Legal services and documentation in an

economical and efficient mode on a wide range of applicable Laws in

India.

Online Legal

Advisory

Legal advisory and

documentation in an

online mode to cater to

lacs of entities and

Individuals in cost

efficient manner.

CURRENT PROCESS

FUTURE

Company incorporation and Compliance support services in India

is done offline which requires professional help, is quite costly;

time consuming.

Single system for managing

all the compliance and

automated alert and control

mechanism

Easy tool for business

registration in automated

manner

Internationally e-search, incorporations, Legal

services, Documentation, Compliances etc. are

provided in automated and online mode

It is high time to transform highly personalised

legal services in India into technology enabled

legal solutions

INR 2000 Cr

INR 42,000 Cr

USD 20 Billion

MCA21 : 2nd Phase

Nothing is permanent in TECHNOLOGYexcept CHANGE………

Use Technology to Beat

Technology

Knowledge Enhancement

Showcasing your experience

Business Development

E - Networking

Business Management

Virtual Database Management

Procedure

Strategy

Problem Solving

Corporate

Planning

Strategy to beat

challenges

Focus on areas where

Computers can’t enter

Venturing unexplored areas

Diversification into new

segments

Change in mindset

You can't do everything alone?

Qualityof

Service

CorporateLaws

EconomicLaws

TaxationLaws

WTO & IPR

InternationalTrade Law

ManagementConsulting

Finance and Accounting

Commerce

BrandSynergy

InfrastructureSynergy

CapitalSynergy

Collaborative Commerce

SingleWindowInterface

KnowledgeSynergy

GlobalPresence

Growing Revenues

Growing Customers

Growing Nations

CS + CA + CWA + MBA + LLB

So share business opportunities through tie-ups and

synergize through C - COMMERCE

Knowledge

C–Commerce

Success

Whether Professionals can grasp

such changes??

“THE SURVIVAL MANTRA”

Learn, Unlearn &

Relearn

“The combination of HARD WORK and SMART WORK is

EFFICIENT WORK”

“Things will never be the same…..

So change the future before future changes you”

Pavan Kumar Vijay

Past President, ICSI

Managing Director, Corporate Professionals Capital Pvt. Ltd.

Company Secretaries- Adding Value through Technology

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