MUMBAI: India Inc fare poorly in regulatory compliance, with average conformity being at merely about 65 per cent, said a domestic legal support services firm.
Suhas Tuljapurkar, founder director of Legasis Services, out of 220 companies his firm tracked, merely around 25-30 companies or 16 per cent are fully compliant on main parameters like labour laws, environmental issues and key regulatory issues in the country.
The average conformity level is merely 60 per cent to 65 per cent, he said, adding the 220 firms include all sectors, except banking and financial services and aviation.
As many as 160 of these companies are listed as well, he said, adding 30-35 per cent are not compliant at all.
Incorporated by professional lawyers in 2006, the Legasis focuses on fusion of lawyering and information technology, he said.
Tuljapurkar claimed that his company is way ahead of the Big Four (EY, PwC, KPMG and Deloitte) in market share in the country with over 70 per cent of the market.
On the revenue side he said he collects a one-time fee, which varies from the kind of service and 20 per cent of one-time fee in subsequent years.
Legasis employs 120 lawyers 15 IT engineers and is profitable, he said.
Explaining the reason for low compliance level he said the main reason is lack of awareness and most non-conformity happens on the labour and environmental laws.
It may be noted that Section 134 of the new Companies Act, which has been notified already, deals with directors' responsibility and the penalty thereof for non-compliance.
The previous UPA government had in 2012 set up a corporate governance committee to formulate a national policy on corporate governance under the chairmanship of industrialist Adi Godrej.
Meanwhile, the company gave away awards to Adi Godrej and Tata Group on the national compliance day on October 10.
While the Godrej Group chairman has been awarded the inaugural 'Compliance Crusader 2014' award, the Tata Group has been conferred as the 'Ethical Business Group 2014' award.
The awards were given away by ex-cricketer Sachin Tendulkar.
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