Tell me about a time you identified a significant statutory non‑compliance risk in your organization. How did you detect it, who did you involve, and what actions did you take to bring the business back into compliance?

Question

VirtualInterview.AI · Accepted Answer

In my last role, I was doing a quarterly compliance health check and noticed a mismatch between our statutory registers and the payroll GL for one of our smaller entities. It looked minor at first, but when I traced it back, I realized year‑to‑date PF and ESI contributions for about 180 employees were being calculated on an outdated salary cap. That exposed us to roughly ₹22–25 lakh in potential back liabilities and penalties.

I pulled a small working group together – payroll, HR, finance, and our external labor law advisor – and we reviewed three years of data in about a week. We recalculated the shortfalls, filed voluntary revised returns, and paid the differential plus interest before any inspection notice landed. I also got IT to update our payroll rules engine and added a quarterly statutory parameters review. Within one quarter we closed 100% of historical gaps and built a control that prevented the same issue across six other entities.

Sample Answer

Keywords