PwC set to take Control of IT solutions market

The market for IT solutions, which promises hassle-free compliance with the revised Clause 49 for the 9,000-odd listed companies, is hotting up.

PricewaterhouseCoopers (PwC) is the latest to jump into the fray with its IT tool 'Control' that seeks to provide heat maps to managements for effectively managing risks.

"The new clause requires the board of directors ensure that a system is in place for controlling risks. The board is also required to review the system every quarter. For a group having subsidiaries and group companies, this can involve large documentation. An IT solution like 'Control' allows the top brass of a company to evaluate the controls and follow progress," Roopen Roy, managing director, PwC, said.

Companies have to comply with Clause 49 of the listing agreement by December 31. Besides PwC, Crisil and Newgen Software have also launched IT solutions to tap the market, thrown open by the requirements under clause 49.

Crisil's Corporate Risk Evaluation Software (CORE) allows organisations to implement and comply with Clause 49 as well as Sections 302 and 404 of the Sarbanes-Oxley Act. Newgen Software Technologies, which launched its Compliance Manager earlier this year, was the first one to anticipate the need for such a tool.

The solution vendors are pitching their products mainly to companies that have a presence in multiple locations and have subsidiaries and group companies.

Besides having a control framework in place, companies are rushing to opt for such a solution because they have to accept responsibility for establishing and maintaining internal controls.

The board of a company has to certify that it has evaluated the effectiveness of the internal control systems in the company and has to inform the same to the auditors and the audit committee. The top management has to identify the deficiencies in the design or operation of internal controls.