Samarthana Corporate Services
Samarthana Corporate Services
HR and Compliance Audit Services
Ensuring total regulatory adherence requires proactive diagnostic oversight, not last minute crisis management. As leading compliance audit consultants, Samarthana Corporate Services delivers forensic HR compliance audit services, providing complete evaluation across Central labour legislations, State rules, and local municipal mandates. We uncover hidden compliance gaps, quantify financial exposures, and resolve operational vulnerabilities, ensuring your organization remains completely insulated against government inspections, penal damages, and corporate liabilities.
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The Compliance Challenge
The Compliance Challenge
The Critical Risks of Undetected Non Compliance
Operating an enterprise in commercial corridors, tech parks, or manufacturing belts involves managing an intricate matrix of employment regulations. Without systematic audits, organizations accumulate latent statutory violations that trigger catastrophic liabilities.
Unannounced Labour & Factory Inspections
Enforcement officers conduct rigorous inspections. Missing Form F, incomplete Form H, or wage register errors can trigger show cause notices and prosecution.
Compounding Financial Liabilities
Delayed EPF and ESI payments can lead to penalties and interest, creating significant financial liabilities and cash flow pressure.
Failed Investor Due Diligence & Deal Blockers
Labour disputes, missing registrations, or non compliant wage structures can delay funding, mergers, and acquisitions.
Our Solution
Independent, 360 Degree Compliance Diagnostics
We serve as your dedicated external compliance auditors. Our statutory audit services eliminate the blind spots, legal ambiguities, and administrative friction of managing complex regulatory obligations.
As a premier provider of HR audit services, we do not just check boxes, we conduct deep forensic evaluations. From verifying monthly contribution receipts and physical registers to auditing third party contractor records and executive HR policies, our labour compliance consultants deliver an objective, transparent assessment. We provide an executive ready Red Amber Green (RAG) risk scorecard accompanied by a prioritized, step by step Corrective Action Plan (CAP) to guarantee your enterprise is 100% audit ready 365 days a year.
Services / Scope of Support
Comprehensive HR & Statutory Audit Coverage
Our labour compliance audit and diagnostic services cover the entire spectrum of employment laws, statutory registers, and workforce operations across corporate establishments, IT enterprises, and industrial manufacturing plants.
EPF & ESIC Forensic Verification
Verifying employee coverage thresholds, accurate contribution splits on basic wages vs. allowances, timely electronic challan remittances, UAN seeding status, and Form 5A establishment profile accuracy.
Minimum Wages & Payment of Wages Audit
Cross verifying basic wage structures against periodically revised Minimum Wage and Variable Dearness Allowance (VDA) schedules to prevent underpayment liabilities.
Payment of Bonus & Gratuity Compliance
Reviewing statutory allocable surplus calculations, verifying employee bonus register entries (Forms A, B, C), and evaluating actuarial gratuity valuation provisions.
POSH Act Compliance Verification
Auditing the composition of your Internal Complaints Committee (ICC), reviewing workplace policy documentation, verifying mandatory employee awareness sessions, and confirming annual report filings with local district officers.
Shops and Establishments Act
Detailed verification of registration certificates, timely renewal records, mandatory abstract displays, and physical maintenance of statutory registers.
Labour Welfare Fund
Auditing accurate periodic calculations and confirming proof of remittance for both employer and employee contributions.
Professional Tax Verification
Reviewing employee salary tax deductions against applicable municipal tax slabs and verifying timely deposit receipts.
National & Festival Holidays Compliance
Ensuring correct notices of declared festival holidays are formally communicated to the local labour inspector and displayed prominently.
Payroll Compliance Audit
Reconciling master attendance and biometric records with gross to net salary registers (Form T), overtime computations, and bank disbursement records to eliminate payroll leakages.
HR Documentation Audit
Examining appointment letters, non disclosure agreements, probation confirmation letters, employee personnel files, and exit documentation to ensure alignment with modern labour codes.
Standing Orders & Model Rules Review
Evaluating certified standing orders or workplace conduct policies to ensure legal enforceability during disciplinary proceedings or employment terminations.
Contractor Statutory Verification
Auditing third party staffing vendors, security agencies, and housekeeping providers to confirm valid Form VI contractor licenses and Form V Principal Employer certificates.
Pre Payment Invoice Audits
Cross referencing billed contractor headcounts against biometric attendance, wage registers (Form XVII), and verified EPF/ESIC challan payment receipts before client invoices are cleared.
Mitigation of Joint Liability
Identifying statutory gaps in vendor operations to eliminate passed on financial liabilities and protect the enterprise against sham contract absorption claims.
HR Due Diligence Audit
Comprehensive pre deal diagnostics for private equity firms, venture capital investors, and corporate acquirers to uncover hidden labour liabilities, union agreements, pending gratuity shortfalls, and active litigation.
HR Risk Assessment & Valuation Protection
Quantifying potential financial penalties and drafting statutory indemnification clauses to protect deal value during corporate transactions.
Why Choose Us?
A Strategic Operational Advantage
When you partner with Samarthana’s HR audit consultants, you gain an authoritative diagnostic partner with deep on the ground expertise.
Forensic RAG Risk Matrix
We provide compliance gap analysis using a Red Amber Green (RAG) system to prioritize legal risks and remediation.
Deep Regulatory Ground Knowledge
Our nationwide labour law and PF/ESI expertise ensures audits align with real world compliance standards.
Independent, Unbiased Assessment
Our external labour law audit provides an objective compliance evaluation, free from internal corporate bias.
Actionable Remediation
We provide drafting support, register templates, and hands on consulting to resolve identified compliance gaps.
Our Process
Solutions
A Proven 4 Stage Audit Methodology
We deploy a structured, transparent labour compliance assessment framework to protect your organization from risk.
Hear from our Clients
Chief Operating Officer
High Growth D2C Brand
“Ahead of our Series B funding round, Samarthana completed a thorough HR due diligence audit in just two weeks. Their RAG report identified critical contractor compliance gaps we rectified immediately, and our funding closed smoothly.”
Head of Human Resources
Engineering Enterprise
“Samarthana’s auditors uncovered historical discrepancies in our overtime records and contractor PF challans that had gone unnoticed for years. Their corrective action plan saved us from substantial inspection penalties.”
Director of Finance
Enterprise IT Services Firm
“Samarthana reconciled four years of wage sheets with our EPF, ESI, and Professional Tax filings, providing exceptional clarity and actionable guidance.”
What is covered in an HR compliance audit?
An HR compliance audit evaluates your complete statutory standing across Central and State labour legislations. It covers EPF and ESIC contribution calculations, minimum wages, overtime registers, the applicable Shops and Establishments Act, the Factories Act, POSH committee setups, mandatory abstract displays, and third party contractor compliance under the CLRA Act.
How often should an enterprise conduct a labour compliance audit?
Enterprises should conduct a comprehensive audit at least once every calendar year. However, organizations in fast scaling sectors, companies operating manufacturing facilities, or businesses managing over 50 contract workers should conduct bi annual or quarterly audits to ensure continuous audit readiness.
What is the difference between an internal HR audit and an external statutory audit?
An internal HR audit typically reviews internal company policies, performance management systems, recruitment workflows, and cultural metrics. An external statutory compliance audit specifically evaluates your legal risk, verifying that your employment practices, wage disbursements, and registers strictly comply with Central and State labour laws to prevent legal prosecution and financial penalties.
How does an HR due diligence audit protect investors during M&A?
An HR due diligence audit identifies hidden labour liabilities before deal completion. It uncovers unremitted social security dues, pending gratuity obligations, unregistered contract workforces, and ongoing labour court disputes. Quantifying these liabilities allows investors to negotiate escrow protections, seek valuation adjustments, or require pre closing remediation.
What deliverables do we receive at the conclusion of Samarthana's audit?
An Executive Summary giving a high level overview of your statutory standing for leadership; an RAG Risk Scorecard, a detailed register by register analysis categorized into Red (Critical Legal Risk), Amber (Moderate Operational Risk), and Green (Fully Compliant); a Liability Quantification Sheet estimating potential penalties and interest exposure; and a Corrective Action Plan (CAP), a practical, step by step roadmap with customized register formats and guidelines to resolve every identified gap.
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Protect Your Business from Compliance Risks
Do not wait for an unexpected labour inspection or a due diligence failure to uncover statutory vulnerabilities. Partner with our leading HR compliance audit specialists to ensure your organization is completely secure, protected, and 100% audit ready.
