INTREGATED COMPLIANCE SOFTWARE FOR END TO END SOLUTION

AIM:

The ultimate aim of compliance (including recovery) is to access, recover and give the eligible employees their due contribution in their account.

Problem:

Multiple source of Registration, remittance, inspection, 7A proceeding, recovery tracking: The current system is divided into parts. The establishement is registered in MCA, Unified Portal and other sources. Default list is provided in CAIU. The action on Default list is processed in physical file with each office taking different actions with no tracking. An establishment not contributing regularly can disappear from default list if it does not pay in range for which the Category A,B,C are considered.

No tracking of special permissions from CAIU after permission grant: The communication sent to establishment has no tracking, no linkage self declaration/e-inspection as well. Inspection allotment is considered in physical file for Cat A, B, C and for others the permission is sought from CAIU. After grant of permission no tracking if inspection allotted or not.

HARD PDF INSPECTION report: Inspection is allotted through SSP. However, the report is in hard PDF format. The dues calculated in inspection are not uploaded in soft format like ECR files.

NO standard 7A due statement: 7A notice is usually not in member wise dues (for each month)  and all offices use different due statement for 7A

No tracking of amount: from due statement changes from Inspection to 7A proceeding to final order, recovery, ECR filed and final to the amount reconciled in the members account

Lack of reconciliation of the amount recovered: The amount recovered through DD/Cheque/8F many times lies without reconciliation as 7A process is considered closed when assessment is made and recovery of amount is done. Also many times even employer is not aware how the dues calculated is distributed among members monthwise.

Lack of 7Q and 14B on amount recovered: As there is no month wise reconciliation, 7Q and 14B reports does not generate

Tools:

Inspection: CAIU, SSP, Physical/Hard scanned copy by enforcement officer, physical or email-notices

7A proceeding: Virtual meeting software, Physical file, e-proceeding software, Blue Book, Excel files maintained by offices, Compliance-MIS

Recovery: Physical files, Red Book, Compliance MIS, Excel files maintained by office, Physical letters, correspondence with bank and other authorities, source of establishment addresses

Reconciliation: Cheque/DD, NEFT payment, VDR functionality, ECR functionality, VDR vs ECR reconciliation

7Q & 14B: Physical files, Unified portal, Blue/Red Book.

Proposal:

Short term proposal:

1.       7A or similar assessment should not be considered closed just after the recovery/head office should consider the process pending until the reconcillation and credit of amount in concerned member’s passbook

Long Term:

The inspection report by Enforcement officer should be uploaded in ECR files for the months concerned. And the software should take the data of existing remittance and Calculate the Dues proposed by the Enforcement officer.

Eg: Let’s say the inspection is for period April 22 to March 22 for establishment M/s ABC. The inspector should upload the ECR files for each month that should have been uploaded by employer.

During the 7A notice the same ECR files should be visible to employer  and based on evidence submitted by employer the accessing officer would decide if the draft due ECR submitted by EO are correct or need to be modified.

7A final order would finalize the final ECR that was supposed to be uploaded. And final dues would arise comparing them with remittance. Once recovery is done VDR should be reconciled with these ECR and accordingly 7Q and 14B amount should also generate at the time of reconcilliation.

 

Process Flow for inspection and 7A based on soft ECR based month wise report:

 

Process Flow for recovery and reconcillation of soft ECR based due statement approved in 7A:

Benefit:

1.       This will ensure tracking of dues of member from the inspection to reconciliation.

2.       This is also ensure that 7Q and 14B will be generated dynamically at the time of reconciliation.

3.       Red book/Bluebook can be maintained in soft copy based on assessment, remittance and recovery made.

4.       Standardization of inspection report, due statement and final order.