Europe Headquartered Global leader in Agricultural & Construction equipments implements Global Compliance Management Solution (GCMS) to replace their existing Big 4’s solution for Indian Operations

Automotive Manufacturing | 3 Legal Entities | 3 Factories
54 locations | 5,000+ Employees | 50+ Users | 180+ Laws

Published on: Aug 13, 2021

Updated on: Sep 21, 2023

(23 Ratings) 5037

CLIENT INTRODUCTION

  • Our client manufactures tractors to trucks and buses, as well as powertrain solutions for on-road and off-road and marine vehicles, its design, produce and sell machines for work.
  • Globally it employs 63,000+ people in 67 plants, 56 R&D centres with 13 brands in 180 countries.
  • Indian entities has plants in Noida, Pune & Pithampur (Indore), manufacturing combine harvester, sugarcane harvester & construction equipment. It offers complete farm mechanization solutions right from land preparation to harvesting.

DECISION TO IMPLEMENT LAWRBIT’S GCMS

  • The client had been using Compliance Management Solution from a Big 4 Consulting Firm and was struggling with level of support, infrequent Regulatory updates and an obsolete technology.
  • In 2019, it experimented by implementing GCMS for one of its newly formed entity, a non deposit taking NBFC having asset size more than INR 1000 Crore.
  • After a year of successful usage, it decided to implement GCMS for its other Indian entities. They were particularly impressed with following:
    • Timely Implementation & comprehensive legal coverage
    • Ongoing Support, dedicated Account Manager & monthly reporting of support logs
    • Near Real Time Regulatory Updates along with impact analysis
    • Regular client’s feedback, end user connects, and technology updates

CLIENT’S CHALLENGES

  • Lack of confidence in the list of applicable Laws and Compliances mapped in their previous compliance management solution.
  • Reporting of Real time Compliance Status to the Board was real challenge. The client was not sure about compliance accuracy and completeness in their existing compliance management solution.
  • Lack of post implementation support from the pervious compliance management solution
  • Difficulty to Drive a tool, in which users had lack of confidence, was a tough task.
  • Regulatory updates were provided once in 30-45 days, that too without any legal documents
  • Team has dual reporting structure – Global legal & Operational teams of parent entity in India
  • Bringing everyone on same page of expectations w.r.t. Regulatory compliance obligations
  • Plant committed in driving health, safety and quality initiative and has been awarded with various ISO certifications. Ensuring compliance to all Regulatory obligations, tracking changes and ongoing compliance monitoring is part of Global commitment.
  • Manufacturing of components and products, extensive testing on the components and the products designed and developed, Performance and Reliability tests being done keeping actual working conditions with customers in mind, needed zero tolerance of compliance.

LIFETIME SUPPORT

Client now enjoys the benefits of our lifetime support

  • Regulatory Updates are provided on Near Real Time basis without any manual intervention.
  • Application is hosted on SaaS, so no involvement from client’s IT team for application support
  • Technology updates, upgrades and new features are introduced on regular basis

THE IMPACT

  • Risk & Compliance Head, Global Legal Head now have better control over its group entities compliance
  • All stakeholders are on same page with understanding and sensitivities of compliance obligations
  • Standardisation of Risk parameters, tolerance levels across all group entities
  • Better visibility, transparency and accountability in the system
  • Management’s reliance on analytical dashboards, regulatory updates, Compliance Certificate etc. is high
  • Overall reduction is Compliance Cost

CLIENT HIGHLIGHTS

  • Go-Live within 2.5 months (2 legal entities, 50+ locations, 20+ states, 50+ Users)
  • Gap analysis of existing checklists helped understand misses and handhold users
  • Compliance Service providers were allowed system access
  • Extended Post Go-Live support was provided to smoothen transit from existing CMS

KEY LAWS APPLICABLE ON CLIENT ENTITIES

SECRETARIAL, TAX & ORS

  • Companies Act, 2013
  • GST Act – 20 states
  • Income Tax & Equalisation Levy
  • Copyright Act
  • Customs Act
  • FDI Policy
  • FEMA (Master Direction – Import & Export of Goods and Services)
  • Foreign Trade Policy
  • Master Directions
    • Other Remittance Facilities
    • Risk Management & Inter-Bank Dealings
  • MSME Act
  • Atomic Energy Act
  • Electricity Act – Central
  • Electricity Duty Act – MH, UP, MP
  • Public Liability Act
  • Static and Mobile Pressure Vessels (Unfired) Rules
  • Petroleum Act
  • Indian Stamp Act – HR
  • Indian Wireless Telegraphy Act
  • Information Technology Act
  • Legal Metrology Act

HR & LABOUR LAWS

  • Factories Act – MH, UP, MP
  • Shops & Establishment Act
  • Employee Provident Fund Act
  • Employee State Insurance Act
  • Apprentices Act
  • Child and Adolescent Labour Act
  • Contract Labour Act
  • Employment Exchanges Act
  • Employee’s Compensation Act
  • Equal Remuneration Act
  • Industrial Disputes Act
  • Industrial Employment (Standing Orders) Act
  • Industrial Establishments (National and Festival Holidays)
  • Inter-State Migrant Workmen Act
  • Labour Welfare Fund Act
  • Minimum wages Act
  • Maternity Benefit Act
  • Payment of Gratuity Act
  • Payment of Bonus Act
  • Payment of Wages Act
  • Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act Private Security Agencies Act

EHS LAWS

  • Air Pollution Act – MH, MP
  • Air Prevention Act – UP
  • Anti-Smoking Act
  • Batteries Management Rules
  • Bio-Medical Waste Management Rules – MH, MP, UP
  • Construction & Demolition waste Management Rules – MH, UP
  • E-Waste Management Rules
  • Fire Prevention and Life Safety Measures Act
  • Fire Safety Act – HR, UP
  • Gas Cylinder Rules
  • Hazardous and Other Wastes Rules
  • Manufacture, Storage And Import Of Hazardous Chemical Rules
  • Motor Vehicles Act – MH, UP, MP
  • Noise Pollution Rules
  • Non-Biodegradable Garbage Act
  • Ozone Depleting Substances (Regulation & Control) Rules
  • Plastic Waste Management Rules
  • Solid Waste Management Rules
  • Water Pollution Act – MH, UP, MP
  • Food and Safety Standards Act

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