PricewaterhouseCoopers launches tool for Clause 49 compliance
New Delhi, 26 December 2005 - PricewaterhouseCoopers (PwC) has leveraged information technology and its deep domain expertise to create a tool designed to help companies to comply with the risk management and internal control requirements of Clause 49 of the Listing Agreement. The tool, christened Control, was released today. It would significantly speed up the complex internal processes that companies would have to go through to generate timely and appropriate reports as required by the new legislation. Drafted by SEBI, Clause 49, which comes into force from January 1, 2006, brings in sweeping new corporate governance reforms.
Amongst many other features, the tool would enable creation of an enterprise-wide collaborative environment for risk and control related document preparation, review and certification. The tool identifies the different risk levels within the organization and helps put in place appropriate control systems. Apart from helping in periodic assessment of these systems, Control would also maintain secure access to information and use digital signatures to enforce a secure certification methodology. The tool has been developed using Microsoft technologies.
The clause, modeled along the Sarbanes-Oxley Act, attempts to raise the corporate governance standards of Indian companies by introducing proper risk management and internal control mechanisms. It also sets down clear rules for structuring of board of directors, audit committees, CEO/CFO certification on the effectiveness of internal controls, etc. Companies will have to file quarterly compliance reports and their auditors would need to certify this compliance every year.
According to Roopen Roy, managing director, PricewaterhouseCoopers Pvt. Ltd., India, “As Indian companies go global, they will need to play by the international standards of corporate governance and controls frameworks. Clause 49 is a step in that direction. PwC is uniquely positioned, because of its deep domain knowledge, to assist companies prepare to comply with the intent and provisions of these regulatory requirements. It also brings to the table technical expertise in crafting these tools, purpose-made for such compliance. PwC is in the business of assisting corporates in building forward-looking governance and compliance programmes, controlling compliance infrastructures, measuring and monitoring ongoing governance and compliance practices and help build a culture of doing the right thing.”
Neelam Dhawan, managing director Microsoft India said, “In a global business environment the importance of Indian companies adopting good corporate governance practices cannot be overstated. This solution developed by PwC, built on the integrated and leading edge Microsoft technology, will help facilitate regulatory compliance and enhance business processes. Combined with the indepth industry expertise of PwC, and the trusted and proven Microsoft platform, Control will help drive corporate accountability and transparency."
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