Compliance Management is the most important part of any business. Highlight the risk of non-compliances.

Failing to comply with rules, regulations, and specifications could have costly consequences. In the famous Sahara case, the Group was accused of failing to refund over ₹200 billion rupees to its more than 30 million small investors that it had collected through two unlisted companies of Sahara. In 2011, SEBI ordered Sahara to refund this amount with interest to the investors, as the issue was not in compliance with the requirements applicable to the public offerings of securities. Later in 2014, Mr Subrata Roy, the chairman of Sahara was arrested for the said fraud. His proposal to settle the matter was rejected by the court and SEBI. Thus non-compliance with the laws of the land can have multi-faceted consequences, ranging from penalties, additional fines to prosecution. Following are some of the risks of non compliance: Penalties and Fines: Penalties include financial fines, limitations on activities, additional barriers to approval and even imprisonment. Criminal Charges: Criminal charges are a potential consequence for certain regulatory non-compliance. Reputational Damage: A business' public image is a key to its success. When a company is thrust into the public eye for failing to comply with regulations, there are reputational repercussions, which eventually lead to distrust. Access to Markets and Product Delays: Non-compliance across enterprise and business network could result in exclusion from the tendering processes and supplier databases. In addition, companies that place value on corporate compliance may avoid doing business with companies which are non compliant as they would want to ensure that they meet their own regulatory obligations. Roadblock in Funding: A company cannot get funded, even in the seed investment level, whose compliances are not up to date.