TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
Trusted Since 1906 (CIN: U10200WB1906GOI001713) (IRDAI REGN. NO: 58)
ADDRESS FOR COMMUNICATION:
THE CHIEF MANAGER
NATIONAL INSURANCE COMPANY LTD.
HEAD OFFICE, INVESTMENT DEPARTMENT
4TH FLOOR, EVEREST HOUSE,
46C, JAWAHAR LAL NEHRU ROAD,
KOLKATA 700071
Tel: 2288 1659; E-mail: pravink.gupta@nic.co.in
Alternate:
Tel: 2288 2238; E-mail: rm.prasad@nic.co.in
Tender Reference: NIC/HO/INV/01/2018/CONC. AUDIT
TENDER DOCUMENT FOR SELECTION
OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF THE COMPANY
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
INDEX
1. Tender Notice : Notice
2. Section I : Invitation for Bids
3. Section II : Instructions to Bidders
4. Section III : General Conditions of Contract
5. Section IV : Technical Bid
6. Section V : Commercial Bid
7. Annexure - 1 : Terms of Reference
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
TENDER NOTICE
It is proposed to select a Chartered Accountants' Firm (`Audit Firm') for
conducting Concurrent Audit of Investment Operations of National Insurance
Company Limited (NIC). The eligibility criteria for selection are given
hereunder:
1. The Audit firm shall be a firm registered with the Institute of Chartered
Accountants of India (`ICAI')
2. It should have experience, for at least 4 years, in conducting reviews of
Risk Management Systems and Processes of Insurance Companies
/Banks / Mutual Funds or have, on behalf of IRDAI, conducted
investment inspection of Insurance Companies.
3. The Audit firm can, at the maximum, hold not more than three Audits
(i.e. Investment Risk Management Systems and Process Audit, Internal
Audit, Concurrent Audit all taken together) apart from Statutory Audits
at any point of time. For this purpose, a declaration shall be submitted by
the Audit Firm at the time of appointment in this regard.
4. It should not have been prohibited / debarred by any regulating agency
like IRDAI, RBI, SEBI, ICAI etc.
5. The Audit Firm to be appointed for the first time should not have
conducted the following assignments for NIC during a period of two
years immediately preceding its appointment:
i) Statutory Audit,
ii) Any Internal Audit,
iii) Any Concurrent Audit,
iv) Any Consulting assignment, whether or not related to Audit
Functions and
v) Review or Certification of Investment Risk Management
Systems & Processes.
6. The Concurrent Auditor shall not be eligible for re-appointment, with the
same Insurer after serving three consecutive years or three years during
the preceding five years.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
The Audit is to be conducted in accordance with the directives of IRDAI.
The procedure for conducting the Concurrent Audit and the reporting format
prescribed in "Technical Guide on Internal / Concurrent Audit of Investment
Functions of Insurance Companies" issued by ICAI will have to be followed.
NIC reserves the right to issue instructions to the Concurrent Auditor to
facilitate proper conduct of the Audit.
The Audit is required to be conducted daily at Investment Department of Head
Office of NIC presently functioning at Everest House (4th floor), 46C, J. N.
Road, Kolkata 700071 or at any other place if the investment Dept shifted
within the city of Kolkata . The Concurrent Auditor may have to appear before
the Audit Committee of the Board / Board of NIC in connection with the
Concurrent Audit for personnel interaction, if required.
The contract for conducting concurrent Audit would initially be for a period of
one year i.e. from April 01, 2019 to March 31, 2020. The selected Audit Firm
may be considered for re-appointment for a further period of not exceeding two
financial years on the same terms and conditions, subject to satisfactory
performance.
In view of the above, sealed offers (Pre-qualification-cum-Technical Bid and
Commercial bid as per tender document enclosed) are invited from eligible
firms of Chartered Accountants for selection as Concurrent Auditor.
The Bidders are requested to download the tender document from the
company's website www.nationalinsuranceindia.com during the period
23.10.2018 to 13.11.2018.
The Tender documents (Pre-qualification-cum-Technical Bid and Commercial
Bid), duly completed and sealed as per the `Instructions to Bidders' in Section
II, should be deposited in the Tender Box at the address given in Page 1 latest
by 2.00 pm on 14.11.2018. The tenders submitted by any other mode i.e.,
personally / through courier or post will not be entertained.
The company reserves the right to reject any or all tenders without assigning
any reason whatsoever.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
SECTION I
Invitation for Bids
National Insurance Co Ltd (NIC) has an Investment Portfolio with market value
around Rs 25,000 Crs. as on 31.03.2018 comprising of Central / State Govt
Securities, Loans to State Governments for Housing / Fire fighting equipments,
Market investments such as shares / debentures etc, Term Loans and various
money market investments. The investments are governed by investment
regulations of IRDAI.
1. This invitation is for seeking Bids from firms of Chartered
Accountants for conducting concurrent audit of Investment operations
of the Company (NIC).
2. Prospective Bidders are advised to study the Tender Document
carefully. Submission of Tender shall be deemed to have been done
after careful study and examination of the Tender Document with full
understanding of its implications.
3. Sealed offers (Bids) prepared in accordance with the procedures
enumerated in Clause 1 Section II are invited from prospective
bidders.
4. This Tender document is NOT transferable.
5. IMPORTANT:
a. Sealed Tenders should be deposited in the Tender Box kept at:
NATIONAL INSURANCE COMPANY LTD.
HEAD OFFICE, INVESTMENT DEPARTMENT,
4TH FLOOR, EVEREST HOUSE,
46 C, JAWAHAR LAL NEHRU ROAD,
KOLKATA 700071.
b. Last date & time for receipt of Tenders: 14.11.2018 at 2.00 pm.
c. Date and Time of opening of Pre-qualification-cum-Technical
Bid: 14.11.2018 at 3.00 pm at the above address.
NOTE: The decision of NIC in the matter of selection of Concurrent Auditor
shall be final and it is binding on the bidders. No correspondence will be
entertained from the unsuccessful bidders in this regard.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
SECTION - II
Instructions to Bidders
Definitions of terms used in this Section
are given in Section III for reference
1. Procedure for Submission of Bids
1.1 It is proposed to have a Two-Bid System for this Tender.
a) Pre-qualification-cum-Technical Bid in one cover.
b) Commercial Bid in another cover.
1.2 Prequalification-cum-Technical Bid of the Tender should be kept in a
separate sealed cover superscribing the envelope with the words:
"Pre-qualification-cum-Technical Bid: Con. Audit (INV.) - 2018".
PLEASE NOTE THAT PRICE SHOULD NOT BE INDICATED IN THE PRE-
QUALIFICATION-CUM-TECHNICAL BID.
1.3 Commercial Bid of the Tender should be kept in a separate sealed cover
superscribing "Commercial Bid: Con. Audit (INV.) - 2018".
1.4 Both the Pre-qualification-cum-Technical Bid cover and Commercial
Bid cover, prepared as above & sealed, are to be kept inside a single
sealed cover superscribed with Tender reference number given in Page 1.
1.5 The outermost cover thus prepared should also indicate clearly the
name, address and contact no. of the Bidder.
1.6 A letter, in a separate sealed cover, confirming the fulfilment of the pre-
qualification criteria by the Bidder and also certifying the period of
validity of Bids for 180 (One hundred eighty) days from the last date of
submission of the Tender Document, should be submitted.
2. Cost of Tender
The Bidder shall bear all costs associated with the preparation and
submission of its Bid, including cost of making presentation for the
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
purposes of clarification of the Bid, if so desired by NIC and
NIC will, in no case, be held responsible or liable for those costs,
regardless of the conduct or outcome of the tendering process.
3. The Tender Document
3.1 Tender procedures and Contract terms are prescribed in the Tender
document. In addition to the broad specification of the services required,
the Tender document includes:
a) Section I - Invitation for Bids
b) Section II - Instructions to Bidders
c) Section III - General Conditions of Contract
d) Section IV - Details of Prequalification-cum-Technical Bid
e) Section V - Details of Commercial Bid
3.2 The Bidder is expected to examine all instructions, forms, terms and
conditions in the Tender Document. All pages of this Tender Document shall
be initialled by the person or persons signing the Bid, which is an indication of
acceptance of all the conditions, and to be submitted along with Pre-
Qualification Bid. Failure to furnish all information required by the Tender
Document or submission of a Bid not substantially responsive to the Tender
Document in every respect will be at the Bidder's risk and may result in
rejection of the Bid.
4. Amendments to Tender Document
4.1 NIC may, for any reason modify the Tender Document by amendment(s).
4.2 The amendment(s) will be notified through our website
`www.nationalinsuranceindia.com'.
4.3 In order to allow the prospective Bidders reasonable time to take the
amendment(s) into account for preparing their Bids, NIC may,
at its discretion, extend the last date for the receipt of Bids.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
5. Language of Bids
The Bids prepared by the Bidder and all correspondence and documents
relating to the Bids exchanged by the Bidder and NIC, shall be written in
English language, provided that any printed literature furnished by the
Bidder may be written in another language so long as the same is
accompanied by an English translation thereof; in which case, for
purposes of interpretation of the Bid, the English translation shall hold
good.
6. Firm Price
6.1 The Bidder shall quote his total consolidated monthly fee for conducting
the Concurrent Audit and issue of the report in the prescribed format.
The fee shall be quoted in Indian Currency, exclusive of taxes, if any,
which shall remain constant throughout the period of the Contract and
shall not be subject to any upward modifications whatsoever.
The minimum fee for conducting the Concurrent Audit shall be Rs.
15,000/- per month plus taxes as applicable. No separate TA / DA will be
given to the members or employees of the Audit Firm.
6.2 Attention of the Bidder is invited to the terms and conditions of payment
given in Clause 4 of Section III.
7. Bidder Qualification
7.1 The expression "Bidder" shall mean the Audit Firm by whom or on
whose behalf the tender is submitted. In case the tender document is not
being submitted directly by the Audit Firm but through any
representative, such representative shall be authorised by a Power of
Attorney, which shall be submitted in original along with the Tender.
7.2 The execution of Tender Document by the Audit Firm shall be as under:
a) Where it is a Company, an officer duly authorised by its Board of
Directors.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
b) Where it is a partnership, a partner who is authorised to do so,
including authority to agree for arbitration; failing which, by all
partners.
c) Where it is a sole proprietorship, the proprietor.
8. Period of Validity of Bids
8.1 Bids shall remain valid for 180 days after the last date of submission of
the Tender. A Bid valid for a shorter period may be rejected by NIC as
non-responsive.
8.2 In exceptional circumstances, NIC may solicit the Bidder's consent to an
extension of the period of validity. The request and the response thereto
shall be made in writing.
9. Format and Signing of Bid
9.1 The Bidder shall prepare the Pre-qualification-cum-Technical Bid and
Commercial Bid, as separate bid documents.
9.2 The Bid document shall be typed or written in indelible ink and shall be
signed by the Bidder or a person or persons duly authorised to bind the
Bidder to the Contract in accordance with Clause 7.2 of Section II. All
pages of the Bid, except for unamended printed literature, shall be
initialled by the person or persons signing the Bid.
9.3 The Bid shall contain no interlineations, erasures or overwriting except as
necessary to correct errors made by the Bidder, in which case such
corrections shall be initialled by the person or persons signing the Bid.
10. Revelation of Prices
Prices should not be revealed in any form before opening the Commercial
Bid, failing which the offer shall be liable to be rejected.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
11. Last Date for Receipt of Bids
11.1 The last date and time for receipt of sealed Bids is given under Clause 5
of Section I. In the event of the specified date for the receipt of Bids
being declared a holiday for NIC, the Bids will be received up to the
appointed time on the next working day.
11.2 NIC may, at its discretion, extend the last date for the receipt of Bids in
which case all rights and obligation of NIC and Bidders previously
subject to the original last date will thereafter be subject to the last date as
extended.
11.3 NIC may, at its discretion, change the requirements mentioned in the
document by giving an addendum after submission of bids but before
opening of the commercial Bid, if required.
12. Late Bids
Any Bid received by NIC after the last date and time for receipt of Bids
as stated in Clause 5 of Section I, will be rejected.
13. Address for Correspondence
The Bidder shall specify the official mailing address, telephone number,
fax number and e-mail address to which all correspondence shall be sent
by NIC. NIC will not be responsible for non-receipt of any
communication sent through any of the above channels.
14. Opening of Bids
The Pre-qualification-cum-Technical Bid will be opened on 14.11.2018
at 3.00 pm at the address given in Page 1. Commercial Bids of the
technically qualified Bidders only will be opened subsequently with due
intimation to short listed Bidders.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
15. Clarifications
If deemed necessary, NIC may seek clarifications on any aspect of the
Bid. However, that would not entitle the Bidder to change or cause any
change in the substance of the Tender submitted or price quoted.
NIC may, at its own discretion call for a meeting of eligible bidders after
pre-qualification cum technical evaluation to seek clarification as may be
required before opening the commercial bids.
All expenses for this purpose, as also for the preparation of documents
and attending meetings, will be borne by the Bidders.
16. Preliminary Examination
16.1 NIC will examine the Bids to determine whether they are complete,
whether any computational errors have been made, whether the
documents have been properly signed and whether the Bids are generally
in order.
16.2 A Bid determined as not substantially responsive will be rejected by NIC
and may not subsequently be made responsive by the Bidder by
correction of the non-conformity.
17. Contacting NIC
17.1 No Bidder shall contact any official of NIC on any matter relating to his
Bid from the time of the Bid opening to the time the Contract is awarded.
17.2 Any effort by a Bidder to influence NIC's Bid evaluation, Bid
comparison or Contract award decision may result in the rejection of the
Tenderer's Bid.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
Award of Contract
18. Post Qualification
18.1 In addition to the pre-qualification, NIC will determine to its satisfaction
whether the Bidder selected is qualified to satisfactorily perform the
Contract. The decision of NIC in this regard is final.
18.2 The determination will take into account the Bidder's professional
experience and track record. Any misrepresentation of facts may lead to
outright rejection of the Bid.
18.3 An affirmative determination will be a prerequisite for award of the
Contract to the Bidder. A negative determination will result in rejection
of the Bidder's Bid.
19. Award Criteria
Subject to clause 18 of Section II, NIC will award the Contract to the
successful Bidder whose Bid has been determined to be substantially
responsive and has been determined as the lowest evaluated bid.
If two or more bidders quote the same fee, the bidder having concurrent
Audit experience in Investment (Treasury) operations for the maximum
number of years would be preferred.
20. Right to Accept any Bid and to Reject Any or All Bids.
NIC reserves the right to accept any Bid, and to annul the Tender process
and reject all Bids at any time prior to award of Contract, without thereby
incurring any liability to the affected Bidder or Bidders or any obligation
to inform the affected Bidder or Bidders of the grounds for NIC's action.
21. Notification of Award
21.1 Prior to the expiration of the period of Bid validity, NIC will notify the
successful Bidder/s in writing by registered letter or Email or Fax, that his
Bid has been accepted. The receipt of acceptance should be sent by the
Bidder in writing through registered post as well as by Email or Fax.
21.2 The notification of award will constitute the formation of the Contract.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
22. Signing of Contract
Along with the notification of acceptance, NIC may send a contract of
terms and conditions to be executed by the Audit Firm, which shall be
returned duly executed by it through an officer duly authorised to do so,
together with the original authorisation, within seven days of receipt
thereof.
23. Publicity
Any publicity by the Bidder in which the name of National Insurance
Company Limited is to be used, should be done only with the explicit
written permission from NIC.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
SECTION - III
GENERAL CONDITIONS OF CONTRACT
1. Definitions
In this contract, the following terms shall be interpreted as indicated:
a) "NIC" means National Insurance Co. Ltd.
b) The "Contract" means the agreement entered into between NIC and
the Audit Firm, signed by NIC and the Audit Firm, including all
attachments and annexure thereto and all documents incorporated by
reference therein.
c) The "Audit Firm" means the Firm of Chartered Accountants with
whom the contract for supply of services is placed and shall be
deemed to include the Audit Firm's successors & representatives (as
approved by NIC) as the case may be unless excluded by the terms of
the Contract.
d) "The Contract Price" means the Fee payable to the Audit Firm under
the Contract for full and proper performance of his Contractual
obligations.
2. Application
These General Conditions shall apply to the extent that they are not
superseded by provisions in other parts of the Contract.
3. Use of Contract Documents and Information
3.1 The Audit Firm shall not, without NIC's prior written consent, disclose
the Contract or any provision thereof, or any Information furnished by or
on behalf of NIC in connection therewith, to any person other than a
person employed by the Audit Firm in the Performance of the Contract.
Disclosure to any such employed person shall be made in confidence and
shall extend only so far as may be necessary for purposes of such
performance.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
3.2 The Audit Firm shall not, without NIC's prior written consent, make use
of any document of information enumerated in Clause 3.2 of Section II
except for purpose of performing the Contract.
3.3 Any document, other than the Contract itself, enumerated in Clause 3.2 of
Section II shall remain the property of NIC.
4. Currency of Payment.
The Fee shall be paid in Indian Rupees.
5. Contract Amendments
No variation in or modification of the terms of the Contract shall be made
except by written amendment signed by the parties.
6. Termination for Default
a) NIC may, without prejudice to any other remedy for breach of
Contract, by written notice of default sent to the Audit Firm, terminate
the Contract in whole or in part:
i) If the Audit Firm fails to deliver any or all of services within the
time period(s) specified in the Contract or any extension thereof
granted by NIC or,
ii) If the Audit Firm fails to perform any other obligation(s) under the
Contract.
b) In the event NIC terminates the Contract in whole or in part, pursuant
to Clause 6(a) above, NIC may procure, upon such terms and in such
manner as it deems appropriate, services similar to those undelivered
and the Audit Firm shall be liable to NIC for any costs incurred for
such similar services. However, the Audit Firm shall continue
performance of the Contract to the extent not terminated.
7. Force Majeure.
a) Notwithstanding the provisions of Clause 6 of Section III, the Audit Firm
shall not be liable for liquidated damages or termination for default, if
and to the extent that, it's delay in performance or other failure to perform
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
his obligations under the Contract is the result of an event of Force
Majeure.
b) For Purposes of this Clause, "Force Majeure" means an event beyond the
control of the Audit Firm and not involving the Audit Firm's fault or
negligence and not foreseeable. Such events may include, but are not
restricted to, wars or revolutions, fire, floods, epidemics and quarantine
restrictions.
c) If a Force Majeure situation rises, the Audit Firm shall promptly notify
NIC in writing of such conditions and the cause thereof. Unless otherwise
directed by NIC, in reasonably practical manner, the Audit Firm shall
seek all reasonable alternative means for performance not prevented by
the Force Majeure event.
8. Termination for Insolvency
NIC may at any time terminate the Contract by giving written notice to
the Audit Firm, without compensation to the Audit Firm, if the Audit
Firm becomes bankrupt or otherwise insolvent, provided that such
termination will not prejudice or affect any right of action or remedy
which has accrued or will accrue thereafter to NIC.
9. Arbitration
All disputes, disagreements, differences or claims arising out of or under
this contract, either during its subsistence or after termination shall be
settled by reference to arbitration of a sole arbitrator to be appointed by
NIC.
10. Governing Language
The Contract shall be written in the language of the Bid, as specified by
NIC in the Instructions to Bidders. Subject to Clause 5 of Section II, that
language version of the Contract shall govern its interpretation. All
correspondence and other documents pertaining to the Contract, which
are exchanged by the parties, shall be written in that same language.
11. Applicable Law
The Contract shall be interpreted in accordance with the Indian Laws.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
SECTION - IV
TECHNICAL BID
A. Functions to be performed
The broad functions defining the scope of work of the Audit Firm are
given in Annexure-1. These are subject to modifications by NIC after giving
intimation to the Bidder.
B. Pre-qualification-cum-Technical Bid Format:
1. Name of the Audit Firm:
2. Address:
3. Telephone, Fax no.& Email id:
4. Date of incorporation:
5. Date of Registration and No. with ICAI :
6. Number of completed years of practice
7. Number and details of Partners
8. Details of Experience of:
i. Statutory or Internal or Concurrent Audit of Investment functions
of Insurance Companies / Banks / Mutual Funds.
ii. Review of Investment Risk Management systems and processes of
Insurance Companies / Banks / Mutual Funds.
iii. Inspection of Treasury operations of Insurance companies on
behalf of IRDAI
Name of the Organisation Years Covered
A.
B.
C.
D.
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
9. Number of qualified, semi-qualified and other audit assistants of the firm:
10.Income Tax PAN:
11. GST NO
12.Whether the bidder has been prohibited / debarred by any regulating
agency: Yes/ No
If yes, please provide details.
13. Whether the Bidder has conducted Statutory Audit / any Internal Audit /
any Concurrent Audit / any Consulting Assignment / review of
Certification of Investment risk Management Systems and processes for
NIC during the past two years:
If yes, please provide details.
Date: Signature of the bidder
Place: with the official seal
Note: Necessary documentary evidence must be submitted along with the bid
document in support of above information (in the Technical Bid).
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
SECTION V
COMMERCIAL BID
The bidder shall quote his monthly fee for conducting the Concurrent
Audit and issue the report as per the prescribed format. Applicable taxes such as
GST shall not be included in the quote. The same would be paid extra by NIC
as per rates in force.
NIC is not liable to make any payment other than the above.
Concurrent Audit Fee per month (Rupees in figures) +GST
Rupees _______________ (in words) +GST
Date: Signature of the bidder
Place: with official seal
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
Annexure-1
Terms of Reference:
For conducting Concurrent audit of Investment operations
(Subject to modification by NIC after intimation to the Bidder)
1. To conduct concurrent audit of investment operations of National Insurance
Co. Ltd. on daily basis at Investment department of Head office of the
Company in Kolkata w. e. f. 01.04.2019.
2. The concurrent audit of investment operations is required to be conducted to
check whether the directives of Insurance Regulatory and Development
Authority of India (IRDAI) and other regulatory authorities issued from time to
time are complied with and to report deviations there from.
3. The role of concurrent audit of investment operations, among others, would
include the examination of the following aspects of the investment
operations:
i. That the investments made are permitted by IRDAI investment regulations
and are within the parameters laid down in the investment policy;
ii. That each investment decision is backed by adequate supporting
information.
iii. That each transaction is backed by sanction by the Competent Authority;
iv. That each approval is complete as regards rate/range and limitation of
quantity/time;
v. To check the reconciliation of in-flow and outflow of funds on daily basis.
vi. When the transaction is through secondary market operations; that:
a. it is routed through an approved broker;
b. the price specifications logically relate to the reported market prices;
c. the execution of order by the broker is within the limit/range given to
him;
d. brokerage, STT, Custodial charge, Service tax etc. are within the
accepted limit;
vii. That there is a clear functional separation of (a) decision making (b)
trading (c) settlement, monitoring & control (d) accounting functions.
viii. To check the preparation of receipt and payment vouchers which are to
be incorporated in Computer systems on daily basis and the Bank
reconciliation statement.
ix. That physical / demat holding reconciliation (periodically) and timely
corporate actions relating to declaration and receipt of Dividend /
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TENDER DOCUMENT FOR SELECTION OF CA FIRM FOR CONCURRENT AUDIT OF
INVESTMENT OPERATIONS OF NATIONAL INSURANCE COMPANY LIMITED
Interest / Rights / Bonus / Conversion / Redemption / Split etc. are carried
out properly.
x. Whether the statutory returns to be filed with the Regulatory bodies are
filed correctly and in conformity with the time limits specified.
Some of the above items in respect of daily investment transactions can
be verified the same day. However, further stages such as confirmation of
the order, taking / giving delivery, liaisoning with the custodian, interest /
dividend collection, conversion / redemption, etc. may not be verifiable
on daily basis and may have to be verified immediately thereafter.
xi. To certify specifically on Repo transaction (borrowing) on quarterly basis
and the same shall form the part of the certificate issued as per the
Technical Guide on internal / concurrent audit of insurance companies
issued by ICAI.
xii. To comment on the compliance of the requirements prescribed for
investments in Equity Exchange Traded Funds (ETFs) during the audit
period.
xiii. To confirm that the requirements prescribed for undertaking CDS
transaction have been incorporated in the investment policy, before
taking any exposure to CDS and to confirm in his quarterly certification
that all CDS transactions, complies with the norms prescribed by RBI and
IRDAI.
xiv. To certify that the Insurer had implemented the minimum integrated
automated Systems and Process, as required under the guidelines on
Interest Rate Derivatives
4. The overall purpose of the concurrent Audit is to report on non compliance
with the regulations framed by the IRDAI and to bring to the attention of the
Management any deviation, lapse or non compliance in the day to day
Investment operations.
5. Based upon above audit, Report shall be prepared and submitted to the
CMD, GM, (IA & ID), and GM (Investment) of NIC on monthly basis on or
before the 15th of the succeeding month. In addition a quarterly report
containing the summary of Audit observations shall be submitted for the
perusal of the Audit committee before the close of the month succeeding
the quarter.
6. Report as required by the IRDAI is also to be submitted within the time
schedule and to the satisfaction of the IRDAI.
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