Tender for Appointment of Auditors for Pre
Auditing of Bills
Hutti Gold Mines Co Ltd
THE HUTTI GOLD MINES COMPANY LIMITED, HUTTI
1.1 The Hutti Gold Mines Company Limited (HGML), a Government of
Karnataka Undertaking has the unique distinction of being the only primary
producers of gold in the country. The corporate office of the Company is at
Bangalore and gold extraction plants at Hutti. HGML has been active in the
process of exploration, development and exploitation of gold deposits
occurring in Karnataka.
1.2 At present the company on an average extracts 2 metric tonnes of gold per
year. The extraction capacity of gold may be increased to 3 tonnes in the
next 2 years' time. HGML has huge reserves of gold and may take up
further expansion in future.
1.3 Location of the Mines : Lingsugur Taluk, Raichur Dist, Karnataka State
Distance : 480 KM North of Bengaluru
300 KM Southwest of Hyderabad
80 KM West of Raichur
20 KM Northeast of Lingsugur
Railway Station : Raichur, south Central Railway 80.km
History of Mining : a) Ancient Mining 2000+ years old
b) Modern Mining Main Mine during
Nizam's period (1902 -1918)
c) Modern Mining Rediscovery of parallel
Lodes and Mining from 1947 onwards.
Present Mine Depth : 26th Level, 842 Metres
1.4 The Company has four major Departments which play main roles in
extraction of primary gold.
1.5 Performance of the Company during last 3 years:-
(Rs. in lakhs)
Particulars FY 2016-17 FY 2017-18 FY 2018-19
569087 568692 587365
a) Ore treated (MT)
b) Net recovery grade 2.78 2.88 2.83
c) Gold produced (kgs) 1579.72 1638.16 1663.16
Income / Turnover 47882.46 43703.29 54491.02
Profitability 3077.09 4168.92 12573.26
This Tender Document is not an agreement and is not an offer or
invitation by The Hutti Gold Mines Co Ltd (HGML) to any party other
than the one that qualifies to submit the Bid. The purpose of this
Tender Document is to provide information to the potential bidders to
assist them in responding to this Tender Document. Though this Tender
Document i s prepared with sufficient care to provide all required
information to the potential bidders, they may need more information
than what has been provided in this document. In such cases, the
potential bidder is solely responsible to seek the information required
from HGML. H GML reserves the right to provide such additional
information at its sole discretion. In order to respond to the tender, if
required, and with the prior permission of HGML, each bidder may
conduct his own study and analysis, as may be necessary.
HGML makes no representation or warranty and shall incur no liability
under any law, statute, rules or regulations on any claim the potential
bidder may make in case of failure to understand the requirement and
respond to the Tender document. HGML may, in its absolute
discretion, but without being under any obligation to do so, update,
amend or supplement the information in this Tender Document.
Scope of work for pre-Audit of Supplier's /Contractor's And Service
1) To pre-audit all the bills of suppliers, contractors, projects,
Advance/Adjustments, EMD and SD refunds, valuing more than Rs. 25000/
2) The period of the pre-audit assignment is for 12 months from January to
3) The bills/claims needs to be audited with respect of provisions of purchase
order/work order/agreement, tender documents, measurement books,
certification by concerned executing department, certification/comments of
independent consultants, statutory recoveries/recoveries of mobilisation
advances, interest, penalty, security deposits, liquidate damages, recoveries
towards issue of materials/cost of service, delay in completion of the work,
compliance to various laws, required approvals/sanctions, supporting
documents, tax invoices currency and sufficiency of bank guarantees
admissible tax and duties, availing of input tax (ITC) benefits, statutory
deductions, GST compliance/filling of returns and arithmetical accuracy etc.,
4) The pre-audit needs to be carried out three times in month at Hutt, i.e on 10th
20th, and 30th /31st of the concerned month. The finance department at Hutt
will provide the bills with necessary supporting documents. The audit team,
at the end of each visit, will have to prepare a list of cleared bills, showing
gross admissible amount, deductions and net payable amount, for making the
payment. The list with seal and signature shall be submitted to the General
5) The remarks/comments for the rejected bills/claims, if any , shall also be
addressed to the I/c.Executive Director/General Manager, Hutt and shall be
handed over before completion of each visit.
INSTRUCTIONS TO BIDDERS
The Bidder is required to submit Covering Letter in Form No. 1.
Following are the guidelines for bidders to submit Technical and
Financial Bids for this assignment.
The bid shall consist of two parts i.e. Technical bid & financial bid.
The Technical bid shall contain all the documents and
declaration/information with respect to compliance with pre-qualification
criteria as per Form No. 2.
The technical bid document shall include specific responses addressing the
requirements described below:
1. Understanding of Hutti Gold Mine's needs.
2. The bidder's organization profile
3. Relevant Experience of the firm.
4. The curriculum vitae of key team members to be associated with this study.
Note 1: Documentary evidences are to be submitted towards all the
experiences claimed and clearly highlighting the relevant part in the document.
The Financial quote shall not be part of technical bid. The total amount /fees
including TA/DA, out of pocket expenses and all taxes and duties shall be
entered in the e-portal, financial bid approval format.
The company will arrange free of cost for the boarding and lodging at its mine
MANDATORY ELIGIBILITY CRITERIAS
The following are the essential qualifying criterias' for the firms to qualify
in Technical Bid.
1) The firm should have been registered with the Institute of Chartered
Accountants of India or the Institute of Cost Accountants of India
2) The firm should have at least 3 Chartered / Cost Accountants as its
3) One of the partners should be a fellow member of the Institute
of Chartered Accountants of India or the Institute of Cost
Accountants of India.
4) The firm should have carried out Internal Audit work in any state
PSUs in Karnataka at least for one year during the previous 5
5) The firm shall have minimum personnel strength of 5 assistants /
Note: Documentary evidences are to be submitted towards compliance with Mandatory
qualification criterias along with the technical bid.
Stage 1: Technical valuation
Stage 1 evaluation will be taken up for those bidders who have submitted bi d
t hr o u g h e - p o r t a l . The bid will be scrutinized with respect to the mandatory
eligibility requirements. Only those bids who meet all the eligibility requirements
shall be considered for further evaluation. The details of these parameters are given
in Form No-2 (Technical Bid). Financial bid shall be opened for only those bidders,
who qualify technically as per the Technical Bid.
Stage 2: Financial Evaluation
Bidders who qualify in stage 1, their financial bids shall be opened. The lowest bid
amount as per e-portal, among the technically qualified bidders shall be taken for further
The amount to be entered in the e-portal financial bid shall be inclusive of all charges,
fees, expenses, TA/ DA & out of pocket expenses and applicable taxes. The amount
entered in the e-portal shall be final and binding.
The assignment/audit work shall be awarded after evaluation of the financial Bid.
OTHER TERMS AND CONDITIONS
HGML's right to accept/ reject the bids
Notwithstanding anything stated in the Tender Document or in any related
correspondence, HGML reserves the right to accept or reject any Bid. It also reserves
the right to cancel/annul the bidding process and reject all Bids at any time before the
award of the Contract, without assigning any reason and thereby without incurring any
liability to the affected bidder or bidders or any obligation to inform the affected bidder
or bidders of the grounds for HGML's action/decision.
FAILURE TO ABIDE BY THE CONTRACT
The bidder is expected to strictly adhere to the terms specified in this Tender
document as well as the LOI. Any violation of any of the terms could lead to
immediate termination of the Contract at the risk and cost of such bidder without
prejudice to the rights of HGML with such penalties as specified in the Tender
Document and the LOI.
TERMS OF PAYMENT
HGML will release payments for execution of the Assignment based on
milestones of work completion as indicated in APPENDIX - 1.
CONFLICT OF INTEREST
Neither the selected firm nor any of the firm's personnel shall engage in any
personal business or professional activity which conflicts or could conflict with any of
their obligations in relation to this project. The key members mentioned in the Tender
document shall not be changed in any circumstances w i t ho u t t he p r i o r a p p r o va l
o f t he H G ML . F ailure to comply, the HGML will have the right to cancel the
Contract at the risk and cost of such bidder without prejudice to the rights of HGML.
The price quoted by the bidder should be valid for 90 days from the tender
Form 1: Cover Letter
The Deputy General Manager (Materials),
Hutti Gold Mines Co Ltd.,
Sub: Tender for Assignment of Pre Audit of bills for the period from January 2020
to December 2020
1. We, the undersigned, after having examined the terms and conditions mentioned
In the tender document, submit our technical & financial proposals for the above
2. We have read the provisions contained in the tender document and confirm that
These are acceptable to us.
3. We further declare that additional conditions, variations, deviations, if any,
Found in our proposal shall not be given effect to this tender.
4. We hereby declare that all the information and statements made in this
Proposal is true and accepts that any misinterpretation contained in it may
lead to our disqualification and without prejudice to other remedies available to
Authorized Signatory (in full and initials):
Name and title of signatory:
Duly authorized to sign this Proposal for and on behalf of [Name of Consultants]
Name of Firm:
Form - 2
Sl. Mandatory Criterias Yes/No Required
No. (To be Documentary
filled by the Evidence
1 The firm should have been Certified copy of the
registered with the Institute of Registration / certificate
Chartered Accountants of India or of incorporation
the Institute of Cost Accountants of
2 The firm should have at least 3 Certificate of
Chartered / Cost Accountants as its Registration.
3 One of the partners should be a Certificate issued in
fellow member of the Institute of this regard
Chartered Accountants of India or
the Institute of Cost Accountants of
4 The firm should have carried out Names of the companies
Internal Audit work in any state with copies of work
PSUs in Karnataka at least for one orders.
year during the previous 5 years.
5 The firm shall have minimum Curriculum Vitae in
personnel strength of 5 assistants / brief.
(A) - The technical bid document should include specific responses addressing the
requirements described below:-
1. Understanding of Hutti Gold Mine's needs.
2. The bidder's organization profile
3. Relevant Experience of the firm.
4. The curriculum vitae of key team members to be associated with this assignment.
Note 1: Documentary evidences are to be submitted towards all the experiences
claimed and clearly highlighting the relevant part in the document.
(B) - Credentials related to the works / assignments completed/continuing for last
Sl. Name of the Contacting Scope of Year of Value of Period of
No. Client/ person of Services services Assignment Completion
Organization with Client Provided provided (INR) of
Address with by Bidder Assignment
(C)- Qualifications and Experience of Key Personnel to be associated with the Assignment:
Particulars Professional No.1 Professional No.2
Name and Designation
Experience / Work History
Educational / Professional Qualification(s)
Expected Nature of Involvement (Specific
roles / activities Full time/ part time
Appendix - I
Terms of Payments
The following schedule will be adopted for the payment of fees:
1) Submission of Pre- Audit report as and when visit to On submission of
Hutti and Audit taken place monthly Audit
report & Bill
THE HUTTI GOLD MINES COMPANY LIMITED
General Terms and conditions of the tender and instructions to Tenderers.
1. The Hutti Gold Mines Co. Ltd., a Company registered under the Companies Act, 1956, and
having its Registered Office, III floor, KHB Complex, National Games Village,
Koramangala, Bangalore 560 047 Karnataka, India., here in called "Company", do not bind
themselves to accept the lowest or any tender and reserve to themselves the right to select any
tender or only individual item in a tender as may be considered expedient to accept.
2. Rate of each article tendered shall be quoted separately or as specified in NIT.
a. The tenderer should quote only in the prescribed format against the item only or as
specified in the space for tendering the rates.
b. Tenderer should specify the `Make' of the item quoted and should quote only for one
Make for each item. If any tenderer quotes for different makes, the lowest of the rate
quoted will be considered irrespective of the make.
c. The rate should be quoted only for the unit specified in the tender and if quoted for
any other unit will be rejected.
d. Tenderers must participate in the tender through e-procurement portal only and pay
the requisite tender fee for the amount (Non-Refundable) as specified in the tender
e. The duly filled tender documents should be uploaded along with EMD details on or
before the last date & time stipulated for the receipt of bids.
f. The discloser of price or enclose of Price Bid sheet in Technical Bid, leads to
rejection of the entire bid.
g. The Tender fee is not refundable under any circumstance.
3. EARNEST MONEY DEPOSIT (EMD):
The EMD for the tender has to be remitted as per e-procurement norms.
4. PRICE BID:
a) The Rate should be quoted for the specified size/Packing/etc. in the schedule which should
include all charges such as packing & forwarding etc.
b) The price quoted shall be on F.O.R. Hutti basis only.
c) The quote shall be in INR (Indian Rupee) only.
d) The price break up shall include all the taxes, duties, P&F, Freight etc. The total of the same
has to be entered in e-portal as their price bid.
a. The rates quoted shall hold good for the time period as specified in the NIT from the date
of purchase order or agreement.
b. The rates offered shall hold good for the time period as specified in the NIT from the last
date fixed for receiving the tender.
6. a). Free samples with affixed labels of the item (s) quoted with item code mentioned in
Tender notification shall be submitted to the Tender Inviting Authority (TIA), The
Hutti Gold Mines Co. Ltd., Hutti 584 115 on or before the last date fixed for receipt
of the tender in case the samples are asked in the tender.
b). Any tender which is not accompanied by the samples in compliance with the above
conditions will be rejected unless it is specified otherwise, in view of the large size
and heavy weight & if it is necessary to submit the samples, then the tenderer should
demonstrate the unit if demanded.
7. The bidder shall be required to execute an agreement on a government stamp paper on the
value required and shall provide Security Deposit (SD) for a sum at 5% of the value of order
in the form of DD issued by any Nationalized Bank drawn on State Bank of India payable at
Hutti in favour of "The Hutti Gold Mines Co, Ltd" within 14 days from the date of intimation
of acceptance of tender. In case if the SD is not provided with in stipulated period, then the
same will be recovered from the first supply bill and if the amount of the first supply bill is
not sufficient, the balance will be recovered in the second bill and so on till entire recovery of
the SD amount.
If any tenderer fails to execute the agreement within the stipulated period, the EMD of such
tenderer will be forfeited by the company.
8. The Contractor/supplier is required to supply the quantities as per the purchase order issued
from time to time. Quantities supplied in excess will not be accepted.
9. All containers must be pilfer proof and should accompany with statutory regulations to
ensure that protection to the quality and quantity of the product packed.
10. a). If supplies are not delivered within the stipulated period as per the delivery schedule
mentioned in the purchase order, the Company reserves the right to cancel the order
or make alternate arrangement to procure the materials at the cost of the supplier. The
additional financial implication out of alternate arrangements if any will be collected
from the supplier.
b). Failure to supply or delay in supplying a portion or entire quantity as per clause 8 and
10(a). will entail the enforcement of one or more or the following at the discretion of
i. Cancellation of the indent or order in part or in whole.
ii. Levy of penalty in case delayed supplies.
c) If supplies are not completed within the date mentioned as Delivery date, a penalty of
0.5% will be levied per week from the date fixed as delivery date (for the balance
quantity only) subject to maximum penalty of 5%, in addition to this applicable GST
will be collected on penalty.
d). If any material supplied is declared as of "Not Standard Quality" or "Supplies are not
as per requirement and schedule", such Tenderer will be penalized by the Company,
including black-listing in addition.
11. No representation for enhancement of rate once accepted will be considered during the
currency 0of the contract for reasons other than statutory requirements.
12. The requirement of the other units of the Company that may be ordered separately must also
be supplied under the same conditions and the same rates in F.O.R. destination basis.
13. In case of materials rejected as not being in accordance with the approved samples or has
been received in damaged conditions, the tenderer should take back and replace by
correct materials without additional cost to the Company, within reasonable period.
14. Supplies not properly packed will be a rejected.
15. Any tenderer withdrawing the tender after submission or fails to execute the agreement as
required, after acceptance of the tender or fails to furnish the Security Deposit as required
under clause (7), the EMD paid by him shall be forfeited by the Company and his firm will
not be considered for future rate contracts/tenders besides black listing the firm.
16. All applications for the refund of EMD furnished with the tender should be made only to the,
"Tender Inviting Authority (TIA)", The Hutti Gold Mines Company Limited., with Purchase
order no, material short description and the tender number.
17. Rates should include all taxes and duties etc. specifying whether the Karnataka VAT OR the
Central Sales Tax is applicable and the percentage.
18. The Security Deposit / EMD made previously against any tender will not be adjusted towards
19. The Tenders that are not accompanied by the required supporting documents required as per
NIT will be rejected.
20. All the supplies should be accompanied along with delivery challan in duplicate, indicating
quantity, order NO & Date and Packing details. The invoice shall be addressed to the Finance
Department of the Company and materials to be supplied to Stores Department along with
copies of invoice, delivery channel and cenvat copy.
21. Payment of the bills will be made by cheque / DD and RTGS only as per terms specified in
purchase order, only after the satisfactory receipt report from the concerned department.
No advance payment will be made.
22. All tenderers shall confirm to the relevant standards, BIS, etc. even though it is not mentioned
in the tender document against a particular item.
23. The supplies should accompany analytical report to confirm to quality, wherever applicable.
24. In case of reduction in taxes or duties under any statutory regulations the benefits shall be
passed on to the Company by way of reduced rate and this shall be the basis for contract price
for the remaining period of the contract.
25. a) Valid authorized dealership certificate has to be submitted by agents or distributors
and should produce copy of letter or authority from the manufacturers.
b) A general warranty should be produced from the manufacturer for the accepted items
manufactured by them and also the manufacturer should produce the valid permission
to manufacture the items issued by respective competent authority.
26. Tenderers shall specify whether the goods offered are from the indigenous sources, from
imported stocks in India or from foreign sources to be which will be imported under license.
Company reserves the right to reject the offers for import of goods if it is in contravention of
import Trade Control policy in force at the time of award of the contract.
27. No application for assistance to get the quota of raw materials will be entertained. Tenderer
should make their own arrangements to secure the same and to supply the goods in time.
28. Tenderers on Rate contract with Govt. of Karnataka stores and purchase department or D.G.S
& D should produce copy of documentary evidence against all applicable items of the tender.
29. If the firms or the industry is registered with Industries & Commerce, Bangalore as SSI, a
copy of the certificate duly attested by the Gazette Officer should be submitted along with
quotation for consideration of price preference if any.
30. No import License will be provided by the Company.
31 a. In case of requirement of any "Import Permit / NOC / Clearances" according to the Foreign
Trade policy 2016-2020 or as per any Acts of state/central Govt., from time to time, the
supplier himself need to take such permits/ NOC /Clearances, before importing/ supplying
the material. The import Permit obtained by HGML shall not be used by the successful
tenderer for the purpose of import or supply of the material. In case, the successful tenderer
fails to obtain the import permit before the stipulated date of delivery, the Company reserves
the right to cancel the tender and to re-tender at his risk and cost.
32. The tenderer must specify the patent name, if any, and name of the manufacturer and the
product offered by the Company.
33. No correspondence will be entertained from the Tenderer during the last week from the last
date fixed for receiving the tenders.
34. For any issues in connection with the tender, the decision of CEO / Managing Director or his
authorized representative of the Company is final & binding on both the parties. Any
differences and disputes shall be settled through the arbitration and conciliation Act 1996 and
any amendments thereof. The Court of jurisdiction shall be Karnataka High Court.
Note: - As the Govt. of India has implemented "Goods and Service Tax (GST)" from 1st July
2017, Hence Bidders are required to quote accordingly in lieu of Taxes, Duties etc.
Tender Inviting Authority (TIA)
The Hutti Gold Mines Co. Ltd.
Hutti 584 115, Raichur Dist. Karnataka
THE HUTTI GOLD MINES COMPANY LIMITED
TECHNICAL BID B (Civil / Services)
Sl. Particulars To be filled in by the Tenderer
1. Name Address of the Company / Firm
2. Address of the Registered Office.
3. Address of the Branch / Regional Office.
3.a Contact Details: Name/Mobile No / Phone No / Mail ID ............................................................
Mobile No. :
Email Id :
4. GST Registration No. :
5. PAN No. :
6. EPF Registration No. :
7. Class of Contractor :
(CLASS I /CLASS II / CLASS III)
8. EMD Amount Paid (Rs.) :
Validity of Tender :
9. Offer should be kept open for days mentioned in the
tender from the last date fixed for receiving the tender
for the purpose of tender acceptance.
10. Additional details if any to be specified.
11. Completion Period.
(Shall not be more than the period mentioned in
12. Payment will be made after completion of work/services
duly certified by HGML officials.
Tender Inviting Authority
Sub: - Tender for ........................................................................................
Ref: - Tender Indent No: ...............................................................................
We here by submit undertaking that, for the above referred tender, we are
accepting your NIT terms in regards with,
1. Delivery/Completion Period.
3. Payment terms.
4. GST percent.
5. HSN code of items.
We does not have any counter conditions for the same.
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