THE TAMILNADU INDUSTRIAL INVESTMENT CORPORATION LIMITED (TIIC)
MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035 Chennai-600035
REQUEST for PROPOSAL (RfP) for
CONCURRENT AUDIT OF OPERATIONS OF TIIC BRANCHES (24) AT VARIOUS LOCATIONS AND
AT HEAD OFFICE at CHENNAI QCBS
(Quality cum Cost Based Selection)
RfP Ref No.TIIC/IA/2021-22/ dated 19.10.2021
Date of Release of RfP 19.10.2021
Pre-bid Meeting 01.11.2021
Last Date for Proposal Submission 22.11.2021
Date of Opening of Technical Proposal 23.11.2021 (R1 Region) (EMD and Technical Proposal) 24.11.2021(R2 Region)
25.11.2021(R3 Region)
26.11.2021(R4 Region)
Tender Application Fee Rs.1000/- plus GST @18% by Demand Draft in favour of “The TIIC Limited, Chennai” RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Key Information on the RfP response submission:
S.No Particulars Time line 1 RfP Issuance date 19.10.2021 2 RfP Coordinator The Head of the Dept. of IA&ISO Dept. Telephone 044-24331203 / 044-24306100 3 Address for proposal submission The Tamilnadu Industrial Investment Corporation Ltd., Email id Head Office, 692, Anna Salai, Nandanam, Chennai-600 035. Note: audit_tender@tiic.org No bids shall be submitted via e-mail /Fax and any bids submitted by e-mail /Fax will not be accepted.
4 Last date of written request for 29.10.2021
Clarifications before pre-bid meeting
5 Reply to individual pre bid query 09.11.2021
6 Last date of submission of RfP response 11.00 a.m . on 22.11.2021
(closing date)
7 Opening of Eligibility cum Technical 11.00 a.m . on 23.11.2021 (R1 Region)
bid 11.00 a.m . on 24.11.2021(R2 Region)
11.00 a.m . on 25.11.2021(R3 Region)
11.00 a.m . on 26.11.2021(R4 Region)
8 Opening of Financial Bid The Financial proposal of only those who qualify in Technical proposal will be opened. The date for opening of the financial proposal would be communicated separately only to those bidders who are eligible and technically qualified.
10 Cost of Application INR Rs.1000/- + GST @ 18%
By way of Demand Draft favouring “The Tamilnadu Industrial Investment Corporation Ltd.”(TIIC Ltd), Chennai.
11 Earnest Money Deposit or EMD INR Rs.15000/- By way of Demand Draft favouring “The Tamilnadu Industrial Investment Corporation Ltd.”(TIIC Ltd), Chennai
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12 Tender Inviting Authority The Head of the Dept. of IA & ISO Dept. TIIC LTD., HEAD OFFICE, CHENNAI-35 13 Tender Accepting Authority The Chairman & Managing Director, TIIC LTD., HEAD OFFICE, CHENNAI-35
Definition of Terms used in the RfP: Following terms are used in the document interchangeably to mean:
1. “Assignment/Job/Engagement” means the work to be performed by the selected bidder pursuant to the contract.
2. “Corporation or TIIC” means The Tamilnadu Industrial Investment Corporation Ltd. 3. “Day” means business day 4. “ICAI” means Institute of Chartered Accountants of India 5. “Personnel/Resources” means professionals and support staff provided by the selected bidder. 6. “Proposal/Bid/Tender” means Response to the RfP document 7. “RBI” means Reserve Bank of India 8. “Recipient, Respondent,firms, Tenderer and Bidder” means interested and eligible applicants
responding to this RfP for Concurrent Audit. 9. “Successful/selected bidder” means the bidder selected as the successful bidder by TIIC in
accordance with this RfP who is also referred to as “Applicant / Concurrent Audit Firm”. 10. IAD Means Internal Audit Department, TIIC Ltd., Chennai. 11. CAG Means Comptroller and Auditor General.
Confidentiality:
This document is meant for the specific use by the Firm/person/s interested to participate in the RfP process. This document in its entirety is subject to copy right laws. TIIC expects the Firms or any person acting on behalf of the firms strictly adhere to the instructions given in the document and maintain confidentiality of information. The Firms will be held responsible for any misuse of information contained in the document, and are liable to be prosecuted by the TIIC in the event that such a circumstance is brought to the notice of TIIC. By downloading the document, the interested party is subject to the confidentiality clauses.
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Table of Contents
1 Introduction .................................................................................................................................... 7
2 Broad Scope of Services for the Concurrent Auditor......................................................... 11
2.1 Objective :........................................................................................................................ 11
2.2 Broad Scope of Work : ................................................................................................... 11
2.3 Requirements to be met by CA Firms........................................................................... 23
3 Qualification Criteria.................................................................................................................... 25
3.1a Eligibility Criteria:.......................................................................................................... 26
3.1b Restricted Eligibility/Ineligible condition ..................................................................... 27
3.1.1 Evaluation of Technical Proposal ................................................................................. 28
4 Language of the Proposal ............................................................................................................. 29
5 Availability of RFP Documents ................................................................................................... 29
6 Pre-Bid Meeting ........................................................................................................................... 29
7 Clarification on the RFP Document ............................................................................................. 29
8 Amendment of the RFP Document .............................................................................................. 29
9 Authorization of the Tender ......................................................................................................... 30
10 Submission of the Proposal in Two Cover System ...................................................................... 30
11 Earnest Money Deposit ................................................................................................................ 31
12 Validity of the Proposal................................................................................................................ 32
13 Opening and Evaluation of the Proposal ...................................................................................... 32
14 Price Offer .................................................................................................................................... 33
15 Evaluation of the Financial Proposal............................................................................................ 33
16 Special cases................................................................................................................................. 34
17 Award of Contract ........................................................................................................................ 34
18 Period of Contract ........................................................................................................................ 35
19 Security Deposit ........................................................................................................................... 36
20 Service level Agreement /Agreement........................................................................................... 36
21 Force Majeure .............................................................................................................................. 36
22 Project Deliverables, Timeline & Payment Terms....................................................................... 36
23 Penalty.......................................................................................................................................... 37
24 Termination of Contract ............................................................................................................... 37
25 General Terms & Conditions ...................................................................................................... 37
26 Other Conditions .......................................................................................................................... 41
27 Arbitration .................................................................................................................................... 42
28 Jurisdiction of the Court............................................................................................................... 42
29.1 Detailed Scope Of Work ............................................................................................11-21
29.2 Deliverables ..................................................................................................................... 36
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Annexure I - Technical Proposal Covering Letter ................................................................................ 44 Annexure II - Details of the Tender ...................................................................................................... 46 Annexure III – Annual Turnover Certificate ........................................................................................ 47 Annexure IV (a) - Format for Firm’s Technical Eligibility (Form A) .................................................. 48 Annexure IV (b) – Format for Technical Evaluation (Form B) ........................................................... 50 Annexure IV (c) – Format for Firms relevant experience (Form B)..................................................... 54 Annexure V – Undertaking ................................................................................................................... 55 Annexure VI (a) – Curriculum Vitae for Key Personnel ...................................................................... 57 Annexure VI (b) – Curriculum Vitae for Designated Team Leader/Audit staff ................................... 59 Annexure VII – Team composition and Tasks Assigned...................................................................... 60 Annexure VIII – Certificate (Not in black list) ................................................................................... 61 Annexure IX – Declaration (Conditions not tampered/modified) ....................................................... 62 Annexure X – Format for Clarification on Tender Document.............................................................. 63 Annexure XI – Financial Proposal........................................................................................................ 64 Annexure XII - Price Bid (Lumpsum) .................................................................................................. 65 Annexure XIII – Checklist of Documents ............................................................................................ 66 Annexure XIV(a) – Declaration............................................................................................................ 69 Annexure XIV(b) – Declaration of Fidility and Guarantee .................................................................. 75 Annexure XV – Proforma for letter of acceptance .............................................................................. 75 Annexure XVI – Letter of confirmation (Non-disqualification)........................................................... 75 Annexure XVII – Do’s and Dont’s ....................................................................................................... 75 Annexure XVIII – Format for Flash Report ......................................................................................... 76 Annexure XIX – Format for Unit Inspection Report ............................................................................ 77 Annexure XX – Format for Physical Verification Report on assets .................................................... 80 Annexure XXI – Format for Audit Report (Branches) .................................................................81-115 Annexure XXII – Format for Audit Report (Head Office) .........................................................116-122
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IMPORTANT NOTICE
This tender procedure is governed by the Tamil Nadu Transparency in Tenders Act, 1998 read with Tamil Nadu Transparency in Tender Rules, 2000 as amended from time to time. In case of any conflict between the terms and conditions in the tender document, the Tamil Nadu Transparency in Tender Act, 1998, read with Tamil Nadu Transparency in Tender Rules,2000 shall prevail.
Critical Information Summary
♦ TIIC reserves the sole right for carrying out any amendments / modifications/changes including any addendum to this RfP. Such amendments / modifications / changes including any addendum to this RfP notified on TIIC’s website www.tiic.org will be binding on the bidders.
♦ Bidders are advised to study the tender document carefully. Submission of bids shall be deemed to have been done after careful study and examination of the tender document with full understanding of its implications.
♦ Any clarifications from bidder or any change in requirement will be posted in TIIC website. Hence, before submitting bids, bidder must ensure that such clarifications/changes have been considered by them. TIIC will not have any responsibility in case some omission is done by any bidder.
♦ In case of any clarification required by TIIC to assist in the examination, evaluation and comparison of bids, TIIC may at its discretion, ask the bidder for clarification. The response/clarification shall be in writing and no change in the price of substance of the bid shall be sought, offered or permitted.
♦ Please note that all the information required as per the bidding document needs to be provided. Incomplete information in bidding documents may lead to non-selection.
♦ Modification and/or withdrawal of Bids: Bids once submitted will be treated as final and no further correspondence will be entertained. No bid shall be modified after the deadline for submission of bids. No bidder shall be allowed to withdraw the bid.
♦ An eligible tenderer (Firm/LLP/company) can apply for Concurrent audit of one or more branches /Head office, subject to the above terms of eligibility. However, separate tender with separate EMD for each branch/head office shall be submitted. The tenderer should submit each tender application with all the required/ relevant particulars, separately along with the tender application fees of Rs.1000/- plus GST @ 18% and EMD of Rs.15,000/-.
5|Page RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
However, the tenderer (Firm/LLP/Company) shall be eligible for selection/appointment for only one branch or Head office as the case may be, which may please be noted.
♦ TIIC has the right to reject any or all bids received without assigning any reason whatsoever. Note: TIIC SHALL NOT BE RESPONSIBLE FOR NON RECEIPT / NON DELIVERY OF THE BID DOCUMENTS DUE TO ANY REASON, WHATSOEVER.
DISCLAIMER
Information contained in this document for Request for Proposal (“RfP”) and/or subsequently provided to Tenderers, whether verbally and/or in documentary form by or on behalf of The Tamilnadu Industrial Investment Corporation Limited (“TIIC”) or any of its authorized employees (collectively referred to as “TIIC’s Representatives”), is provided to the Tenderers based on the terms and conditions set out in this RfP document and any other terms and conditions subject to which such information is provided. This RfP document is not an agreement and is not an offer or invitation by TIIC to any other party. The purpose of this RfP document is to provide interested parties with information to enable formulation of their proposal.
This RfP document does not purport to contain all the information each Tenderer may require. The Tenderers should conduct their own due diligence, investigations and analysis and should check the accuracy, reliability and completeness of the information in this RfP document and obtain independent advice from appropriate sources. TIIC or its Representatives make no representation or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of the RfP document and concerned with any matter deemed to form part of the RfP document, award of the assignment, the information and any other information supplied by or on behalf of TIIC or otherwise arising in any way from selection process. The prospective Tenderer will be responsible for all obligations to its staff, their payments, complying with provisions of law relevant for the working of the Tenderer’s staff.
6|Page RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
1.0 Introduction
TIIC is the Premier State Level Financial Institution established way back in 1949 in the Country to faster Industrial Development in the State of Tamilnadu. It plays the catalyst foster role of Development Financial Institution to extend financial assistance to the MSME Industries, Service Sector and Large Scale Industries apart from nurturing the first generation entrepreneurs.
TIIC, since its inception, has been instrumental to help more than One lakh Entrepreneurs to realize their dream of setting up their own enterprises. Further, it plays vital role in meeting the objectives of State Government to have balanced growth of all regions and employment generation through the industries / service enterprises financed by the Corporation.
TIIC has been serving the Micro, Small, and Medium enterprises, which account for 90% of the total assistance, for more than 70 years with several financial products viz. Term Loan, Working Capital Loan, Equipment Finance, Transport Loan, Bill Financing, etc. As of Oct 2021, TIIC has 6 Regional Offices, 24 Branch offices and 9 field/satellite offices across Tamil Nadu with the Registered Office in Chennai.
TIIC intends to ensure the following through the proposed (Concurrent) Audit of BOs/HO:
a) To verify how far the Internal control systems and procedures are adhered to in various areas of operations of the Corporation.
b) To make analysis of the quality of the Corporation’s assets and the effectiveness of control system
c) To evaluate the adequacy and effectiveness of Risk management, internal control systems and procedures
d) To identify the potential High Risk areas and to suggest risk mitigants e) To give a fair view on the perceived risk perception of the auditee offices
TIIC invites interested Tenderer to submit their technical and financial bids under TWO cover system for the Quality and Cost-based Selection (QCBS) for “Undertaking (Concurrent) Audit of Operations of branches of TIIC / Head Office “ in accordance with the scope of work, conditions and manner prescribed in this Request for Proposal (RfP) document.
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1.1. Purpose of RfP
The purpose of RfP is to shortlist experienced professional firms / Limited Liability Partnerships (LLP) / Limited Companies of Chartered Accountants, for undertaking Audit of Operations of Branch Offices (BOs) at the following locations and select departments of the Head Office of TIIC at Chennai.
Table – I
S. Regional Branch Office Loan Outstanding (BO) as on 30.09.2021 No. Office (Rs. in Crores) $
R1-Chennai
Head Office
(Select Depts., viz.)
Head Office Project/Subsidy,
HRM/Estate/F&R/
BCL/LM&R/REC.
R1-Chennai
1 Chennai Chennai 378.42
2 Chennai Tambaram 126.81
3 Chennai Tiruvallur 160.75
4 Chennai Vellore 36.03
5 Chennai Villupuram 21.26
R2 –Coimbatore
6 Coimbatore Coimbatore 102.69
7 Coimbatore Kurichi 48.85
8 Coimbatore Tirupur 93.94
9 Coimbatore Erode 83.72
10 Coimbatore Karur 28.69
R3 - Madurai & Tirunelveli
11 Madurai Madurai 58.79
12 Madurai Dindigul 47.95
13 Madurai Karaikudi 29.76
14 Tirunelveli Tirunelveli 55.07
15 Tirunelveli Thoothukudi 48.16
16 Tirunelveli Nagercoil 93.48
17 Tirunelveli Sivakasi 55.39
R4 – Salem & Trichy
18 Salem Salem 65.79
19 Salem Dharmapuri 47.52
20 Salem Hosur 96.56
21 Salem Kallakurichi 6.99
22 Trichy Trichy 63.19
23 Trichy Thanjavur 39.34
24 Trichy Cuddalore 31.46
$ including written off cases.
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1.2. Information Provided
The Request for Proposal document contains statements derived from information that is believed to be relevant at the date but does not purport to provide all the information that may be necessary or desirable to enable an intending contracting party to determine whether or not to enter into a contract or arrangement with TIIC. Neither TIIC nor any of its employees, gives any representation or warranty, express or implied, as to the accuracy or completeness of any information or statement given or made in this document. Neither TIIC nor any of its employees has carried out or will carry out an independent audit or verification exercise in relation to the contents of any part of the document.
1.3. Disclaimer
Information contained in this document for Request for Proposal (“RfP”) and/or subsequently provided to Tenderers, whether verbally and/or in documentary form by or on behalf of The Tamilnadu Industrial Investment Corporation Limited (“TIIC”) or any of its authorized employees (collectively referred to as “TIIC’s Representatives”), is provided to the Tenderers based on the terms and conditions set out in this RfP document and any other terms and conditions subject to which such information is provided. This RfP document is not an agreement and is not an offer or invitation by TIIC to any other party. The purpose of this RfP document is to provide interested parties with information to enable formulation of their proposal.
This RfP document does not purport to contain all the information each Tenderer may require. The Tenderers should conduct their own due diligence, investigations and analysis and should check the accuracy, reliability and completeness of the information in this RfP document and obtain independent advice from appropriate sources. TIIC or its Representatives make no representation or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of the RfP document and concerned with any matter deemed to form part of the RfP document, award of the assignment, the information and any other information supplied by or on behalf of TIIC or otherwise arising in any way from selection process. The prospective Tenderer will be responsible for all obligations to its staff, their payments, complying with provisions of law relevant for the working of the Tenderer’s staff.
Subject to any law to the contrary, and to the maximum extent permitted by law, TIIC and its officers, employees disclaim all liability from any loss or damage (whether foreseeable or not) suffered by any person acting on or
9|Page RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
refraining from acting because of any information including forecasts, statements, estimates or projections contained in this RfP document or contents ancillary to it whether or not the loss or damage arises in connection with any negligence, omission, default, lack of care or misrepresentation on the part of TIIC or any of its officers, employees, contractors or advisers.
1.4. Costs to be borne by Applicants
All costs and expenses incurred by Applicants in any way associated with the development, preparation, and submission of responses, including but not limited to the attendance at meetings, discussions, demonstrations, etc. and providing any additional information required by TIIC, will be borne entirely and exclusively by the Applicant.
1.5. No Legal Relationship
No binding legal relationship will exist between any of the Applicants and TIIC until execution of a contractual agreement.
1.6. Applicant’s obligation to inform itself
The Applicant must conduct its own investigation and analysis regarding any information contained in the RfP document and the meaning and impact of that information.
1.7. Evaluation of Offers
Each applicant acknowledges and accepts that TIIC may in its absolute discretion apply selection criteria specified in the document for evaluation of proposals for short listing / selecting the eligible (Concurrent) Auditor(s). The RfP document will not form part of any contract or arrangement, which may result from the issue of this document or any investigation or review carried out by a Recipient.
1.8. Tender Inviting Authority
The tender inviting authority will be The Head of the Dept. of IA & ISO Dept., TIIC., Head Office, Chennai-600 035.
1.9 Tender Accepting Authority
The tender accepting authority will be The Chairman & Managing Director,
TIIC., Head Office, Chennai-600 035.
1.10 Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all the information / data / operations, etc. of TIIC.
1.11 Errors and Omissions
Each applicant should notify TIIC of any error, omission, or discrepancy found in this RfP document.
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1.9. Acceptance of Terms
An Applicant will, by responding to TIIC for RfP, be deemed to have accepted the terms of this RfP document.
2. Broad Scope of Services for the (Concurrent) Auditor
2.1 Objective: The main objective of Concurrent cum Internal Audit are :
a) To verify how far the Internal control systems and procedures are adhered to in various areas of operations of the Corporation.
b) To make analysis of the quality of the Corporation’s assets and the effectiveness of control system
c) To evaluate the adequacy and effectiveness of Risk management, internal control systems and procedures
d) To identify the potential High Risk areas and to suggest risk mitigants
e) To give a fair view on the perceived risk perception of the auditee offices
2.2 Project Objective and Scope of audit of TIIC’s Branches and HO Departments
The functions of TIIC’s Branch Office(s) include credit dispensation under various loan schemes and other day to day operations of the Corporation. The selected Chartered Accountant Firms / LLP/ Companies would undertake (concurrent) audit of operations of the Branch(es) on daily / regular basis and based on their findings also regularly suggest measures to improve the functioning of operations of Branches of TIIC. Assignment would also include verification and confirmation on the adequacy of internal controls and IT system for sustaining operations. The staff deputed by the firm / LLP / Company of Chartered Accountants for carrying out the audit should be qualified and experienced in the area of work.
With regard to TIIC’s select Head Office Non-operational departments viz., Human Resources, Estate, Funds & Resources and BCL (GST Matters), the transactions will have to be audited by external auditors, on concurrent basis. Further, there are operational departments like Projects, Loan Monitoring & Rehabilitation / Recovery & Subsidy Departments which are also vital departments of Business whose operations also need to be audited.
The objective and scope of the Concurrent Audit to be undertaken in the above Head Office /branches are as under:
A. Objective of Audit:
The main objectives of the audit are as follows:
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i. To supplement the efforts of the Corporation in carrying out
simultaneous internal checks.
ii. To reduce the interval between transactions and its independent
verification.
iii. To verify whether the system and procedures has been properly complied
with and implemented in the Corporation.
iv. To perform substantive checking of various areas of the TIIC’s operations
and to make rectification of the deficiencies in the earliest possible time.
v. To detect and arrest revenue leakage, immediately.
vi. To bring an ongoing improvement in the standard of internal controls
and processes by identifying areas of weaknesses & deficiencies and
energizing the process of rectifications.
vii. To give advisory opinion in the areas of operations of the Corporation, as
and when it is necessary.
viii. Verifying whether sanctions for advances and disbursement thereof is
obtained from competent authority.
ix. Scrutinizing the completeness of documents submitted for availing
advances and other facilities.
x. Ensuring compliance of laid down systems, procedures and policies.
xi. Examining books of accounts, records and / or registers to ensure that
they are maintained in accordance with the prescribed systems /
reconciled with general ledger.
xii. a) Physical verification of all assets for which loan disbursement is
considered (concurrent basis / every month).
b) Physical checking of stocks financed under working capital
scheme at relevant places (concurrent basis / every month).
c) Random inspection of 1 NPA unit per month (With loans above
Rs.50.00 lakhs) – without any repetition of the units inspected.
xiii. Detection and arresting of leakage of income, if any.
xiv. To follow up with branch officials to ensure timely rectification of
irregularities reported with regard to the operations of the branch and
rectified on the spot / during audit period itself.
xv. Verify prompt, timely and regular submission of the periodical and
statutory returns.
xvi. Any violation of procedure is brought to light.
xvii. Reporting any irregularity /fraud in working which may result in
financial or other loss to the Corporation.
xviii. Feedback on regulatory compliances.
xix. Any other areas on the operations of the Corporation which are vital, in
nature.
B. Scope for all Term Loans / Bill Finance
i. Whether the transactions or decisions are within the policy parameters
laid down by the Corporation.
ii. Sanction and Disbursement of loans & advances are within the policy
parameters laid down by the Corporation. All the loan disbursements are
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to be checked / verified by the concurrent auditors before actual disbursements and all the disbursement notes need to be signed by the concurrent auditors. iii. Verify whether pre-sanction/pre-disbursement/post-disbursement visits are undertaken and reports are available on record. iv. Sanctions / Disbursements are within the delegated authority. v. Sanctions / Disbursements do not violate the instructions or policy prescriptions of RBI / SIDBI / other regulators. vi. Compliance to RBI guidelines relating to defaulters list / caution advice / CIBIL list / fraudulent borrowers list, KYC / AML, etc. is done satisfactorily. vii. DoP (Delegation of Power) has been exercised properly and Post Sanction Reporting, wherever applicable, is sent to Post Sanction Reporting Authority. viii. Verify whether Legal clearance certificate has been issued by the Branch Manager. ix. Pre-disbursement conditions are duly complied with; deviations made, if any, are within the guidelines issued, from time to time. x. Verify the end use of term loan disbursed by the Branch for the purpose it is meant for (based on documents and inspection reports of Branch officials). xi. Whether charge has been properly created over securities offered and CERSAI/ROC Registrations are done properly. xii. a) Physically verify all the assets financed including stocks created out of working capital by undertaking field inspection in respect of all disbursed cases.
b) Undertake inspection of units on a sample basis to cover 1 NPA unit (with loan above Rs.50.00 lakhs )per month or such number of units as may be reasonably prescribed by TIIC then and there.
xiii. Whether in all cases, where the statements/ documents (stock statement, xiv. project completion report, final list of machinery, Acknowledgment of xv. Debt, Annual report, etc.) are not received, even after a reasonable time, xvi. prompt action is taken by the branch to get the same. xvii. To ensure that all assets hypothecated and mortgaged to the Corporation are adequately insured as per the extant guidelines of the Corporation and are in the joint names / with TIIC clause and the policies are renewed on timely basis. Verify whether there is any mis-utilisation of the loans and whether there are instances indicative of diversion of funds. Verify whether there are any borrowal accounts (other than those reported by the branch) which are showing symptoms of sickness and can be classified as NPAs, if so, ascertain the reasons thereof and analyse the steps taken by the branch in the matter. Verify whether the classifications of loan assets of the Branch have been done properly and income recognition norms have been followed up, as
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per the Corporation’s guidelines and procedure/ RBI norms by the respective branch. xviii. Verify whether subsidy claims are as per the respective scheme and lodged timely with Govt. authorities by the Branch through Head Office. xix. Verify whether claims submitted by Branch to CGTMSE are in time. xx. Verify whether guarantee fee for coverage under CGTMSE are collected and deposited with Credit Guarantee Trust Fund. xxi. Verify the credit ratings and submission of a certificate in writing that the ratings are found to be correct. The discrepancies, if any, should be brought to the notice of the Corporation. xxii. Verify the updation of CIBIL data and report the status in the monthly audit report. xxiii. Verify the details of flow of applications, time taken for appraisal of Proposals, pending applications, etc. with Project Department of the BO concerned and report the status in the monthly audit report. xxiv. Verify whether assets have been verified by the BO within 30 days from the date of classification of account as NPA. Also verify whether inspection of units financed have been done by Branch Officials as per extant guidelines. xxv. Verify the proposals covered under any other Special Scheme of the Government / other Agencies and ensure whether the requisite documents prescribed for the purpose have been obtained and kept on record. xxvi. Whether GST has been correctly collected on various incomes like investigation fees, upfront fee, etc., at applicable rates? xxvii. Whether GST has been correctly paid on various expenditures like Legal Fees, Valuation Fees, etc., at applicable rates? xxviii. Whether details of GST collected / paid has been sent to H.O. every month as per the prescribed formats? xxix. To verify discounting of bills / retirement of bills, on daily basis. xxx. To ensure that the visits to the vendors units have been undertaken as per the extant guidelines of the Corporation. The auditor may also undertake some sample visits along with BO officials on random basis and / or on the basis of criticality of the transactions. xxxi. To verify, due date-wise, Live Bills under Bill Finance Scheme. xxxii. To undertake visit to purchaser companies to verify the invoices under BFS on sample basis if necessary. xxxiii. Safe custody verification as per extant guidelines. xxxiv. To identify and report the BFS bill pending for more than 180 days and the action taken by branch thereon.
C. Scope for Working Capital Cases
i. To ensure that margin on current assets; Rate of Interest & Drawing
Power is considered / fixed as per the terms of sanction.
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ii. To ensure that the loans have not been made operational beyond the validity period, without approval of the competent authority for extension of the validity period.
iii. To ensure that the periodic visits to the borrower units have been undertaken as per the Scheme guidelines. The auditor may also undertake some sample visits along with BO officials on random basis and / or on the basis of criticality of the account.
iv. To ensure that the monthly stock statement from the borrower is obtained on time and filed.
v. To scrutinize the monthly stock statements to ensure correct valuation to match the loan outstanding.
vi. To ensure that the inventories as mentioned in the Stock statement furnished by borrowers are correct and as per the books of borrower.
vii. To ensure that the CA certified book debt statements from the borrowers are obtained on half-yearly basis.
viii. To ensure that stocks are adequately insured as per the extant guidelines of the Corporation and are in the joint names / with Bank clause and the policies are renewed on timely basis.
ix. To ensure that financial statements are obtained, wherever applicable and indicate the observations on the general business operations / profitability, etc.
x. To ensure that stock audit is undertaken, wherever applicable and to ensure that the compliance of stock audit observations are met.
xi. To check the correctness of interest / penal interest. xii. To examine the overdue accounts closely (in terms of operations in the
account, Stock & Book Debt statement, Credit Summation, Cheque Bouncing, etc.). xiii. To ensure compliance of extant guidelines, in case of multiple current accounts and / or multiple banking arrangement.
D. Scope for Follow-up /Recovery:
1.Whether Inspection / Visit slip of the units by LAO/LAAs available for each month in the files for all doubtful cases?
2.Whether any special remarks like change in management, change in location, missing machinery etc., have been reported and acted upon by the branch in time?
3.Whether Reschedule / Relief / concession given Registers are maintained.
(a) In the case of change of management / take over whether all the conditions stipulated during the approval have been complied with. (b) Whether documents executed within the stipulated time for the above. (c) If not whether action has been initiated to regularize the account.
4.In the case of waiver, whether settlement has been made within stipulated period. If not whether interest for delayed period has been collected and condonation for the delay has been approved.
15 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
5.Whether details of assets available at the time of possession were clearly indicated in the possession taken register including missing assets noticed if any during possession.
6.Whether mahazar copy of has been sent to concerned promoter / collateral owner?
7.Whether criminal compliant has been lodged for missing assets, if any?
8.Whether steps have been taken for issue of advertisement for auction sale within reasonable time.
9.Whether auction sale register is mained with full details.
10.Whether data sheets have been prepared and updated for all doubtful cases and further course of action has been initiated as suggested in the data sheets for those cases?
11.Whether details of the assets to be auctioned, details of auction, terms and conditions of auction are sent to the promoters / guarantors / collateral owners prior to auction sale.
(a) Whether the highest bidder paid the amount within stipulated period. (b) If the bidder has remitted the bid amount beyond the stipulated period. (c) If the bidder has not remitted the bid amount within the reasonable time whether the amount has been forfeited as per the terms and conditions.
12.Whether promoter has been informed about the bid amount credited in the loan account, valuation of the assets and balance payable.
13.If the auction is not confirmed whether 10% bid amount has been refunded before advertising for the next auction.
14.Whether suit / SFC OP was filed against the borrower for the balance dues after the assets are sold in public auction.
15.For the unit where decree has been obtained whether branch has taken steps to identify the property owned by the promoters and Execution Petition has been filed.
16.Whether suit filed cases have been reviewed periodically.
17.Whether categorization statement of LAO/LAA is maintained.
18.In the case of WCTL availed by the units whether stock statement has been obtained every month from the unit.
19.Whether slippage of loans are placed before the Branch Sanction Committee every month.
20.Whether working results of the unit are obtained and analysed every year where loan sanctioned is 1 crore and above.
16 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
21.Acknowledgement of Debt to be obtained as per extant guidelines and kept in safe custody (copy in the file).
22.Adequacy of working capital limits to be ensured.
23.Discussion with banks and reports on such visits / discussion to be kept in the file and action to be initiated on the observations, wherever required.
24.Insurance / renewal of insurance of the assets of the borrower, incorporating TIIC’s interest
25.Notice regarding TIIC’s charge on the assets / machinery to be verified at the borrowers premises.
26.Maintaining close and regular contact with the promoters/ directors and key personnel of the assisted units; discreet market interaction with units in similar industry, suppliers, banks, auditors etc.
27.Periodical visits to collateral securities / encroachment / modification etc. to be taken up with borrower. Independent visits, whether undertaken in respect of consortium finance/ multiple banking projects, if there is substantial delay.
28.Fresh Valuation of collateral securities, wherever considered necessary as per the guidelines.
29.Letter of assignment to empanelled valuers/ chartered enginers is issued.
30.Existing loan portfolio (including NPAs) are reviewed and wherever immovable property is available as security to the Corporation a fresh E.C. is obtained every year.
31.Regular monitoring of cases which are rescheduled/ restructured or are in stress category is done.
32.Viability of a/cs at the time of restructuring of the loan assets are ensured before restructuring.
33.Restructuring to be done looking into the cash flows of the borrower and after assessing the financial viability.
34.Proper classification of assets / accounts as per extant guidelines.
35.Adherence to guidelines in respect of NPA cases for recovery of dues.
36.Availability of limitation period in respect of all accounts in the portfolio.
37.Whether advertisement for sale of the taken over assets under SARFAESI Act, issued in prescribed format.
38.Whether re-verification of title deeds and other documents done in respect of credit exposures of Rs.5 crores and above.
17 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
39.In BFS cases Demand advices are sent to the seller for overdue bills and penal interest.
40.On delay in retirement of any bill, interest and penal interest should be demanded and reminders should be sent regularly for any amounts remaining unpaid towards bills, interest or penal interest.
41.Dishonoured cheques should be kept separately in safe custody.
42. Whether reimbursement received for a particular bill has been adjusted against the dues for the same bill?
E. Scope for Accounts:
1. Whether loan ledger sheets are maintained in good condition?
2. Whether cashier’s book is written upto date and cash balance checked
3. Whether Journal Voucher register is maintained upto date?
4. Whether Bank reconciliation statements have been prepared and are upto date?
5. Whether cash / bank entries generated in computer are checked and signed by the officer and maintained in a separate file?
6. Whether principal & interest demands are correct and sent on time?
7. Whether remittance made by loanees are properly appropriated?
8. Whether term loan, transport loan postings were made upto date?
9. Whether funds are being transferred to Head Office regularly?
10.Whether vouchers have been stitched regularly? If so, it should be signed by the Officer?
11.Whether monthly General Ledger Trial Balance is extracted and checked by the Officer?
12.Whether deletion of vouchers from the system is done with proper written authentication of the Branch Manager / Assistant Manager?
13.General Ledger codes are properly assigned in respet of the various account heads?
14.Whether loan numbers, borrower number are assigned in the natural sequence and proper records are maintained for the same?
15.Whether Computers / Systems are accessed by authorised person?
16.Whether periodical / Regular data back up are maintained? 18 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
17.Whether the interest rates are correctly mentioned in the loan ledger?
18.Whether auction sale proceeds / sale of machinery / sale of collateral etc., have been properly appropriated towards principal account?
19.Whether the Tax deducted at source details are furnished correctly. Whether the amounty remitted by Head Office tallies with the Branch figure?
20.Whether the GST paid/ input credit details are furnished correctly to Head Office every month?
21.Whether the GL code wise listing for all the GL heads are taken by the branches after the end of the financial year?
22.Whether the provisioning statement prepared by the banches at the end of the year is correct?
23.Whether the Branch is forwarding the weekly back up to Systems Department at Head Office regularly ?
24.Whether the duplicate key location is available ?
25.Whether Reset clause for Interest properly carried out ?
26.Whether foreclosure register is maintained by the Branch Office?
27.Whether Cheques inward register maintained?
28.System for issue of cheques & safe custody of cheque books available.
29.Sundry / suspense monthly reconciliation
30.Day begin / Day end is on line
31.Whether the auditee office is maintaining proper records of cash transactions / series of transactions integrally connected > Rs. 10 lakh
32.Whether the auditee office is maintaining proper records of all suspicious transactions, loans & advances, bills, Records to contain details such as nature of transactions, amount of transactions, date of transaction, parties to the transactions etc.?
33.Whether the reporting requirements regarding verification of identity of clients, maintenance of records, suspicious transactions, etc. to Financial Intelligence Unit, India (FIU-IND) are followed?
F. Scope for Administration:
To check whether the following registers are maintained/updated and report on the following administration areas given below:-
19 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
1. Attendance Register 2. Late attendance Register 3.Cash Book / Bank Book 4.Postage Register 5.PL, ML Register / records of the employees / service register 6.Casual Leave Register 7.Inward Register 8.Despatch Register 9.Miscellaneous advance Register 10.T.A. Bill Register 11.Payment Register 12.Vehicle maintenance Regiter 13.Vehicle log book 14.Insurance records on office assets, cash holdings, cash in transit, etc. 15.Regional / Branch Manager’s residence telephone bills / recovery for excess
calls, etc. 16.Inspection report for Driving Licence, Insurance, RC book etc., for all the
employees who avail conveyance allowance. 17.Employment Exchange Returns 18.Contract appointments 19.Whether verification of all fixed assets (dead stock items) carried out prior to
closing of annual accounts. 20.Maintenance of all files, registers and other records. 21.System of keeping Old records and their easy retrieval, in case of emergency. 22.Availability of adequate communication facilities. 23.Availability and safe custody of duplicate keys of all cupboards/furniture etc.,
Safe custody Register / its maintenance, retrieval of documents. 24.Destruction of old records as per HO guidelines. 25.Insurance coverage for housing loans. 26.Reimbursement of Official entertainment expenditure 27.Stationery / Printing 28.Reimbursement to officers for newspapers / periodicals / books, etc. 29.Rent / taxes for office premises timely renewal of lease. 30.Maintenance of dead stock / AMCs / Dead stock register / inventory for misc.
items not classified as dead stock items. 31.Repairs & maintenance of office. 32.Security arrangements for office. 33.Car hire bills / travel agent bills. 34.Liveries to workmen employees. 35. Expenditure control by auditee office as per HO guidelines issued from time to time.
20 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
G. Scope for Head Office Department:
i. Maintenance of files, registers and other records.
ii. System of keeping old records and their easy retrieval.
iii. Destruction of old records as per extant guidelines.
iv. Approval of the bills on various expenditures incurred as per DoP.
v. Adequate coverage of Insurance on various assets and its validity.
vi. Entering into AMC for various assets as per norms.
vii. Claiming Refinance from SIDBI by furnishing necessary details as per
their requirement.
viii. Mobilisation of Fixed Deposits is as per the extant guidelines.
ix. Monitoring of transfer of funds from & to branches.
x. Investment of surplus funds at H.O., if any to avoid loss of income.
xi. Compliance of the observations of AG Audit / Statutory Audit / SIDBI
Inspection without delay.
xii. Repayment of bank loans / FDs / Bonds on due dates.
xiii. Provisioning of NPAs as per RBI guidelines.
xiv. Payment of Salary, bonus and other staff related payments.
xv. Monitoring of the expenditure budget vis-a-vis actual every month.
xvi. Filing of TDS and other returns before the due dates.
xvii. Collection of GST data of the previous month from all BO / FO on or
before the 5th of every succeeding month through e-mail for consolidation
work.
xviii. After draft return filing, Payment of GST amount on or before 20th of
every succeeding month through Funds & Resources department by way
of RTGS at our Indian Bank.
xix. Reconciliation of Annual Accounts with GST returns at the end of year
and filing of annual return.
xx. Arrangement of GST audit for the year on completion of that financial
year.
xxi. Scrutinizing the Relaxation notes regarding Special / General Conditions,
Relaxation of Security, Change of Supplier, Direct payments to Supplier,
CIBIL score relaxation, Age relaxation, 10% overdue relaxation, etc.
xxii. Whether undrawn balances were reviewed at the each month end.
xxiii. Monitoring the pendency of petitions forwarded through Hon’ble CM’s
Cell, Amma Call centre & Govt. of India Public Grievance Portal and
others.
xxiv. Scrutinizing the OTS Proposal received from the branches.
xxv. Monitoring of Slippage of Units.
xxvi. Analysis of Loans Portfolio.
xxvii. Monitoring of BFS loans, Joint Finance cases, etc., periodically.
xxviii. Checking the correctness of Change in Management / Constitution,
Reschedulement, TLSP Clearances, Upset Price fixation, Substitution of
Collateral Security.
xxix. Whether subsidy claims made with the Government is as per
Government policy and claims are made in time.
21 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
xxx. Subsidy reimbursement received from Government is properly xxxi. appropriated and accounted to the respective units. Wherever subsidies disbursed but recovered from the units on account of ineligibility has been surrendered to the Government.
The above areas of operations are illustrative and not exhaustive.
2.2 The CA Firm will have to submit the following reports to the
Management:
(i) Quarterly reports as per the format prescribed by TIIC, from time to time, covering Branch’s/HO Departments day-to-day operations including its core functions such as credit appraisal, pre-sanction and post-sanction supervision mainly under Term Loan, Working Capital, Bill finance and other operations, compliance to the terms and conditions of sanction, post disbursement, supervision, documentation, review/renewal of limits, bills finance, KYC norms, monitoring of business risks and compliance of Delegation of Powers etc.
(ii) Monthly reports covering comments on adherence to regulatory, internal policy, procedure, guidelines, compliance of Delegation of Powers etc. and areas of audit viz. Flash Report as per the formats. (Enclosed in Annexure)
(iii) Monthly reports on physical verification of assets for all the disbursement made during the month (as per format enclosed)
(iv) Unit Inspection Report on 1 NPA unit per month (as per format enclosed)
(v) Bi-annual report on the compliance of audit by branch. (vi) Any other related reports as may be required by TIIC from time to time.
Note: The CA firm / LLP / Company shall be accountable, on its part, for wrongly verifying any document or auditing disbursement notes or such other important documents, based on which the Corporation can / will take all appropriate actions against such deliquencies.
The above reports with regard to operations mentioned above relating to the respective Branch / HO Departments including area of credit dispensation and other day to day operations should be submitted in the following manner to the Branch / Regional Offices / HoDs concerned.
S. No. Name of the Branch To whom reports to be submitted 1 Chennai For 24 branches Sl.No.1 to 24 : 2 Tambaram Branch Manager of the concerned Branch, 3 Tiruvallur Regional Manager of the Concerned Region, 4 Vellore and HoD of Internal Audit Department at 5 Villupuram Head Office. 6 Coimbatore
22 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
7 Kurichi
8 Tirupur
9 Erode
10 Karur
11 Madurai
12 Dindigul
13 Karaikudi
14 Salem
15 Dharmapuri
16 Hosur
17 Kallakurichi
18 Tirunelveli
19 Thoothukudi
20 Nagercoil
21 Sivakasi
22 Trichy
23 Thanjavur
24 Cuddalore
25 Head Office, Chennai For Head Office: HoD of the respective Department and HoD of Internal Audit Department at Head Office.
Note: Copy of the report should be made available in soft copy and hard copy forms within one week of the audit period for which the report pertains.
A detailed checklist and other operating guidelines will be provided to the concurrent auditors. Necessary training / consultation required would be provided to them for enhancing the quality of the audit. They would be made aware of the guidelines and circulars issued subsequent to commencement of assignment and having impact on the concurrent audit, to keep them abreast of the changes in the operational and regulatory guidelines.
TIIC will prescribe structured formats for the audit reports and also stipulate the time limits for submission of the reports. The audit formats would be reviewed on annual basis. The firm / LLP / Company should strictly adhere to the format and the time limit. TIIC may prescribe different periodicity for different reports of the same branch.
Flash Report (Monthly), Audit Report (Quarterly), Physical Verification Reports (Monthly) Unit Inspection Report (Monthly) & Bi-annual Feed back report.
2.3 The selected CA firm would also be required to comply with the following requirements:
i. The Firm / LLP/Company shall ensure that the audit firm / company or any
sister / associate concern, is not conducting the statutory audit of the
Corporation or any of its branches.
ii. The firm/ company shall execute undertaking of fidelity and secrecy on its letterhead in the format prescribed by the Corporation.
23 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
iii. The firm/ company shall ensure that the audit be carried out in a professional manner and in case of any misconduct and negligence, the Corporation at its sole discretion report the matter to ICAI/RBI/CAG as it may deem necessary.
iv. The firm / company shall ensure that it will not sub-contract the audit
work assigned to any outside firm / company or other persons, even
though such persons are qualified Chartered Accountants.
v. The CA firm would do the audit work themselves and would depute qualified and experienced employees and further ensure continuity of the member(s) of the audit team for smooth audit functions at BO/HO. The team of Concurrent Audit should consist of a Principal (A qualified Chartered Accountant), a Team leader ( Chartered Accountant/Retired Bank/ Financial Institution employee not less than the cadre of Manager with minimum 3 years experience in Bank audit) and Audit staff (semi qualified/articled clerk). The team leader & audit staff, shall visit the branch/HO on daily basis but in any case not less than 15 days in a month. The principal / partner(s) will visit the branch/HO themselves at least once in a week (ie. not less than 4 days a month) or as and when required by the Corporation. The shortfall in attendance may attract deduction in fees payable in proportion with attendance. The team leader allotted for audit of a branch/Head office, should not be changed without the approval of TIIC and if any changes are necessary to be made by the CA firm/Company, should be done only with the prior written approval of the TIIC.
vi. A declaration shall be furnished by the firm that credit facilities availed by the firm or partners or firms in which they are partners or directors, including any facility availed by a third party for which the firm or its partners are guarantor/s have not turned or are existing as non-performing assets, as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would get terminated; besides, the firm being liable for any action under ICAI Rules.
vii. Any other terms and conditions of the assignment would be decided by the Corporation, on a case-to-case basis, with the approval of CMD of TIIC and it would be binding on the CA.
2.4 Appointment of Auditors - other conditions:
i. As a matter of policy, TIIC shall engage the services of a CA
firm/LLP/Company for carrying out Audit of one BO only or Head
Office at a time. Accordingly, in case the CA firm / LLP/Company has been
already engaged by TIIC in any of its branches/HO, such CA firm / company
will not be eligible for another assignment (in the same branch/HO).
ii. After completion of specific period (continuous three years i.e. 1 year + 2 years), cooling period of one year would be observed for a firm / company to become eligible for fresh appointment in the same BO/HO. This will be
24 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
purely at the discretion of the Corporation and no rights whatsoever accrue to the firm / company for such appointment.
iii. The auditor should adhere to the audit coverage strictly as per the scope as may be decided by the Corporation, from time to time.
iv. The auditors should not undertake any other activities / assignment on behalf of the branch or HO, without obtaining the clearance from IAD, in writing.
v. The auditors would not give any rating or grade to the Branch.
vi. Necessary arrangements would be made for providing space, workstation and access to systems (viewing rights only) to the auditors for ensuring smooth conduct of the audit. This would be the responsibility of the Corporation. However, Branch In-charge / HoD, IAD will take responsibility for arrangement of the same.
vii. The CA firm /LLP/Companies should continue to satisfy the eligibility norm for appointment as Auditors as prescribed by the Corporation, from time to time.
viii. The assignment would be subject to periodical review at the discretion of the Corporation. The Corporation reserves the right to terminate the assignment for Audit at any time, without assigning any reasons whatsoever. In such an event, the CA firm/LLP/Company shall take such steps, as are necessary to bring the services to an end in a cost effective, timely and orderly manner.
ix. The IAD will stipulate the time limits for submission of the reports as per the prescribed format.
x. The audit report format would be reviewed on an annual basis by IAD. The firms should strictly adhere to the report format and the time limit. Delay in submission of reports/incomplete reports will attract deductions from remunerations/fees payable to CA firm /LLP/ Company as decided by the Corporation.
xi The Concurrent Auditors shall seek any clarification / guidance from IAD for smooth conduct of the Concurrent Audit.
3 Qualification Criteria
Tenderer must read carefully the minimum conditions of eligibility (the “Conditions of Eligibility”) provided herein. Proposals of only those Tenderers who satisfy the Conditions of Eligibility will be considered for technical evaluation.
3.1(a) Eligibility Criteria: Tenderer must read carefully the minimum conditions of eligibility (The Conditions of Eligibility) provided therein. Proposals of only those Tendereres who satisfy the conditions of eligibility will be considered for Technical evaluation.
25 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Eligibility Criteria No.
i. Tenderer should have Minimum 3 years of branch audit / concurrent audit experience in Financial Institutions / Public Sector Banks, mainly in the area of credit dispensation-knowledge & experience in carrying out audit works and other day to day operations (with documentary proof for the award and completion of the assignment).
ii. Tenderer should be a Partnership firm / LLP / company of Chartered Accountants where partners / directors are CAs and should have valid registration Certificate of Practice from ICAI (proof of registration to be furnished).
Note:
Tenderer should have suitable Infrastructural facilities, including office set up, adequate manpower, which are specialised in the area of audit of branch operations, mainly in the area of credit dispensation and other day-to-day operations of the Corporation. Competence and qualification of key professional staff, which shall carry out the assignment in a time bound manner, Particulars about the firm / LLP / company, including details of partners/directors, their qualifications and experience to be furnished.
iii. The tenderer should be empanelled with RBI/any of the nationalised bank and the validity in currency
iv Tenderer should have regular set-up, either head office or full-fledged branch offices, at respective locations (locally) of TIIC Head Office / branches (which will be subject to field verification by the TIIC; if found to be false, the tender submitted by the said firm will be summarily rejected and the next CA firm in the reserve list will be considered).
V Tenderer shall have annual turnover not less than Rs.20.00 lakhs as on 31.03.2020.
## An eligible tenderer (Firm/LLP/company) can apply for Concurrent audit of one or more branches /Head office, subject to the above terms of eligibility. However, separate tender with separate EMD for each branch/head office shall be submitted. The tenderer should submit each tender application with all the required/ relevant particulars, separately along with the tender application fees of Rs.1000/- plus GST @18% and EMD of Rs.15,000/-. However, the tenderer (Firm/LLP/Company) shall be eligible for selection/appointment for only one branch or Head office as the case may be, which may please be noted.
26 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
3.1. (b) Restricted Eligibility /Ineligible conditions:
viii. The following Concurrent Auditors appointed earlier by the Corporation, for the following branches shall not apply for the same branch /HO as per Corporation’s norms. But they are eligible to apply for other branches/Head office, as the case may be.
S. Branch Name/ Name of the CA Firm
No. Head Office
1 Chennai M/s. Raghunathan & Anantharaman, Chennai
2 Tiruvallur M/s. Khicha & Prabu Kesavan, Chennai
3 Maraimalai Nagar M/s. S Sonny Associates, Chennai
4 Coimbatore M/s. K C S Associates, Coimbatore
5 Tirupur M/s. S V S S & Co, Tirupur
6 Erode M/s. Elangovan & Co, Erode
7 Kurichi M/s. SIVSM & Company Coimbatore
8 Nagercoil M/s. Dharmalingam & Associates, Nagercoil
9 Hosur M/s. Venkat & Raghunathan, Hosur
10 Head Office M/s. Vaithisvaran & Co LLP, Chennai
viii. The firm/LLP/company or any of its sister/associate concern wherein the present Statutory Auditor of the Corporation is associated as a partner/director shall not be eligible to apply.
3.1.(c) : The following documents shall be furnished without fail; alongwith documentary proofs required to support their eligibility.
a) The Tenderer should submit copy of valid PAN Card.
b) The Tenderer should have valid GST Registration. Copy of GST Certificate to be submitted.
c) The Tenderer should not have been black listed by TIIC or any State or Central Government or Banks/Financial Institutions in India as on date. An undertaking must be submitted in support of the same (Annexure – VIII).
d) The Tenderer or their sister concerns should not be involved in the Statutory audit of the Corporation at present.
e) The existing Concurrent Auditors of the Corporation shall not apply for the same branch for which they are doing Concurrent Audit at present.
Only those proposals that qualify the Eligibility Criteria will be considered for the next stage of evaluation.
27 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
3.1.1 Evaluation of Technical Proposal Evaluation of Technical Proposal
The Technical Proposal will be evaluated on the basis of Tenderer’s experience. Only those Tenderers whose Technical Proposals score more than 60 marks out of 100 shall be considered for evaluation of the Financial Proposal.
The scoring criteria to be used for evaluation shall be as follows:
S. Criteria Maximum No. Marks
(Weightage)
1 • The Tenderer should be a Chartered Accountant firm / LLP / company with year of establishment
• The Tenderer should have Knowledge and experience in carrying out 20
audit works and other day to day operations.
• Less than 3 years - No Marks
• Years since establishment – 3 years – 10 Marks
• Above 3 years (1 marks for every additional 1 year of experience)
subject to a maximum of 10 marks (Additional)
2 The tenderer firm/Company shall have more than 3 partners / 10
directors.(Certificate of practice) – 10 Marks
– 3 Partners / Directors or less - 5 Marks
3 Be the Tenderer having at least 3 years of previous track record of
carrying out such audits in other Financial Institutions / Public
Sector Banks mainly in the area of credit dispensation and other day
to day operations of the Bank / Financial Institution (with 30
documentary proof of the award of assignment and completion
certificate)- 10 Marks
– every additional year of experience will carry 2 marks subject to maximum of 20 – 20 Marks (Additional)
4 Whether the Tenderer is empanelled with RBI 10
5 Whether the Tenderer is registered /empanelled with CAG 10
6 Be the Tenderer having availability of suitable Infrastructural facilities
including office set up, adequate manpower – minimum 3 (other than
partners/directors), who are specialized in the area of audit of
Branch Operations mainly in the area of credit dispensation and 10 other day to day operations of the Corporation. Team leader should
be a qualified CA/Official of retired bank/Financial Institution not
less than the cadre of Manager and other Team Members (Annexure –
VII).
7 Be the Tenderer’s Turnover of minimum Rs.20.00 lakhs per annum –
4 Marks. 10
Additional Turnover of every Rs.5.00 lakhs – 1 mark subject to maximum of 6 marks – 6 Marks (Additional).
Maximum Score 100
28 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
4 Language of the Proposal
The Proposal prepared by the Tenderer as well as all correspondences and documents relating to the Proposal shall be in English language only. If the supporting documents are in a language other than English and Tamil, the notarized translated English version of the documents should also be enclosed. Proposal received without such translation copy will be summarily rejected.
5 Availability of RFP Documents
a) RFP document can be downloaded from www.tenders.tn.gov.in/ www.tiic.org at free of cost. For the downloaded tender document, the Tenderer should give a declaration for not having tampered the Tender document downloaded (as per Annexure IX). However application fee of Rs.1000/- puls GST shall be enclosed alongwith each RfP submitted.
6 Pre-Bid Meeting
Pre-bid meeting will be held at 11.00 AM on 01.11.2021 in the Head Office of TIIC, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035, during which the prospective Tenderers can get clarifications about the tender. The Tenderers shall send their queries in writing to audit_tender@tiic.org at least two days prior to the pre-bid meeting date. The Tenderers are advised to check www.tenders.tn.gov.in/www.tiic.org for up-to-date information like change in date / venue etc., of pre-bid meeting. Non-attending of pre-bid meeting is not a disqualification.
7 Clarification on the RfP Document
Any discrepancies, omissions, ambiguities or conflicts in the audit clarifications tender document or any doubts as to their meaning and any request for clarification may be sent in writing to “The Head of the Dept. of IA & ISO Dept., TIIC, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035” or through e-mail to audit_tender@tiic.org The Head of Department (IA&ISO) will review the same and where information sought is not clearly indicated or specified in the tender documents, will issue a clarifying bulletin which will be uploaded on www.tenders.tn.gov.in /www.tiic.org, The Head of Department (IA&ISO) will neither make nor be responsible for any oral instructions. Request for clarification should be brought to the notice of The Head of Department, (IA&ISO) in writing, before 48 hours of the pre-bid meeting.
8 Amendment of the RfP Document
TIIC whether on its own initiative or as a result of a query, suggestion or comment of an Tenderer, may modify the tender document by issuing an addendum or a corrigendum at any time before the opening of the tender. Any such addendum or corrigendum will be uploaded on www.tenders.tn.gov.in /www.tiic.org and the
29 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
same will be binding on all Tenderers, as the case may be. Any addendum or amendment will form part and parcel of the tender document.
9 Authorization of the Tenderer
The Proposal should be signed and sealed on each page by the Tenderer or by the person who is duly authorized for the same by the Tenderer. A Power of Attorney indicating the Authorized Signatory would be required in case the signing authority is not Director/Partner on the Board of Directors/ Firm of the Tenderer.
10. Submission of the Proposal in Two Cover System
The RfP must be submitted on or before the closing date and time
• Fax / email copies of any submission are not acceptable and will be rejected by TIIC.
• Copy of bids and attachments must be provided in sealed envelopes – technical bid separately - financial bid separately with proper superscription.
The person(s) signing the Bids shall initial all pages of the RfP. The Bids shall contain no erasures or overwriting except as necessary to correct errors made by the applicant, in which case corrections shall be initialled be the person(s) signing the Bids.
If the submission does not include all the information required or is incomplete, the proposal is liable to be rejected.
All submissions, including any accompanying documents, will become the property of TIIC. Applicants shall be deemed to license, and grant all rights to TIIC to reproduce the whole or any portion of their submission for the purpose of evaluation, to disclose the contents of the submission to other respondents and to disclose and /or use the contents of the submission as the basis for any resulting RfP process, notwithstanding any copyright or other intellectual property right that may subsist in the submission or accompanying documents.
(a) Every page of the terms and conditions of the RfP document including amendment/addendum should be signed and sealed in token of having accepted the RfP conditions, failing which the proposal will be rejected summarily.
(b) Proposals should be submitted in two parts:
Part I Fulfilment of Basic Eligibility Criteria Form A: Form B: Technical Proposal (to contain document in support of Eligibility and Technical Evaluation) with all relevant forms as given in the Annexure-XIII interveningly grouped in Form A and Form B .
30 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Part II
Financial Proposal (to contain the financial quote in lumpsum)
(c) Tenders should ensure submission of all documents along with Part-I (Form A and Form B) and Part II as per the Check list given in Annexure -XIII.
(d) A soft copy of Part-I should be provided in a Compact Disc/USB Flash Drive. This is only for reference purposes and in case of discrepancies between the two, hard copy submission shall prevail.
(e) Tenderers are requested to submit Part I (Form A and Form B) and Part II in a two different sealed cover superscripting as Part I and Part II respectively. These two covers namely Part I and Part II must be placed in a separate sealed cover superscripted as “RfP for the Selection of (Concurrent )Auditors for Audit Operations of Branch office ______________( Name of the Branch )/Head Office of TIIC ” addressed to “The Head of the Dept. of IA & ISO Dept., TIIC, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035”, containing the name and address of the Tenderer. Proposals submitted with unsealed /not properly sealed cover would summarily be rejected.
(f) Tenders should be dropped only in the appropriate tender box (R1/ R2/R3/R4) as grouped in Table 1 - Page no.8) kept at “TIIC, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035” on or before 11.00 AM of 22.11.2021”. Proposals will not be received by hand.
(g) Alternatively, the tenders can be submitted through registered post so as to reach the above address on or before 11.00 a.m. of 22.11.2021. Tenders received after the specified time will not be considered and TIIC will not be liable or responsible for any postal/ transit delays.
(h) A proposal once submitted shall not be permitted to be altered or amended.
11. Earnest Money Deposit
a) Every Proposal/tender should be accompanied by an Earnest Money Deposit (EMD) to the value of INR 15,000/- in the form of a Demand Draft only drawn on any Indian Nationalized/Scheduled Commercial Bank in favour of “The Tamilnadu Industrial Investment Corporation Limited”, payable at Chennai. The EMD in any other form will not be accepted. The Earnest Money Deposit will be returned to the unsuccessful Tenderers.
b) The Earnest Money Deposit will be retained in the case of successful Tenderer and it will not earn any interest and will be dealt with, as provided in the terms and conditions of the tender.
c) Any request of the Tenderer, under any circumstances claiming exemption from payment of EMD will be rejected and their price offer will not be opened.
31 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
d) The amount remitted towards EMD is liable to be forfeited in case the Tenderer fails to execute the contract after submission of the proposal or after acceptance of the offer by TIIC or fail to sign the Agreement or to remit the Security Deposit.
12. Validity of the Proposal
The Proposal shall be valid for a period of not less than 120 days from the Proposal Due Date (the “PDD”) or for the period that may be mutually extended but not exceeding 180 days.
13 Opening and Evaluation of the Proposal
(a) The proposals received up to 11.00 AM as per the office clock on 22.11.2021 will be taken up for opening. Proposals received after specified date and time will not be accepted. Only the Technical Proposal (Part I) will be opened by the Chairman & Managing Director or by the Person/Committee authorized by him/her in the presence of the available Tenderers/ representatives of the Tenderers who choose to be present as scheduled below. The Technical Proposal shall be verified as to contains all the necessary forms along with the EMD. If any of the forms are found to be not confirming with the Checklist in the Annexure XIII, those bids shall not be considered for evaluation.
(b) The Chairman & Managing Director or Person/Committee authorized by him will inform the attested and unattested corrections, before the Tenderers and sign all such corrections in the presence of the Tenderers. If any of the Tenderers or agents not present then, in such cases the Person/Committee will open the Tender of the absentee Tenderer and take out the unattested corrections and communicate it to them. The absentee Tenderer should accept the corrections without any question whatsoever.
(c) If the date fixed for receipt of the proposal happens to be a Government holiday, the sealed tenders will be received up to 11.00 AM on the next working day .
(d) The Technical proposal will be evaluated by a Tender Scrutiny Committee of TIIC in terms of the qualification criteria. The Committee shall comprise of the members as appointed by the Chairman & Managing Director of TIIC. The Committee reserves the right to disqualify any of the Tender in case the Committee is not satisfied with the documents furnished, including the past performances.
(e) TIIC will verify the credentials/ supporting documents, etc., submitted by the tenderers with the concerned departments/ agencies/ clients before opening of Part II cover and in case if any discrepancy is found, their Tender will be rejected, and their Part-II Cover will not be opened.
(f) Any adverse/not satisfactory remarks on the performance of previous works will entail disqualification of the tender.
32 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
(g) The marks scored in Technical bid will be evaluated (normalised) individually for each branch / Head office as follows:
TN = TB /Tmax * 100 TN = Normalised technical score of the bidder under consideration TB = Evaluated technical score of the bidder under consideration Tmax = Maximum technical score of any bidder for that branch/Head office.
(h) The Tenderers declared as qualified by the Committee, will be informed the date of opening of Part II (Price bid).
14. Price Offer
(a) The Price bid should be kept only in the separate Part II cover only and if not done, the same will be summarily rejected.
(b) The price bid should be prepared as per Annexure-XII.
(c) GST should be quoted separately as per the price bid format.
(d) The fee quoted should be inclusive of travel, boarding, lodging and other incidentals in connection with the completion of the assignment. There shall be no out of pocket expenses in addition to the fee quoted shall be borne by TIIC.
(e) The price should be neatly and legibly written both in figures and words.
(f) In case of discrepancy between the fee quoted in words and figures, lowest of the two shall be considered.
(g) Part-II bid should not contain any counter offer or financial conditions. Variation in the financial terms and conditions of the tender will not be accepted and such tenderers will be summarily rejected.
(h) The contract is initially for a period of ONE YEAR from the date of signing of the agreement with the renewal option of maximum additional two years with/without enhancement in remuneration in any case not exceeding 10% at the sole discretion of TIIC.
15. Evaluation of the Financial Proposal
a) The Financial Proposal will be evaluated in accordance with Tamil Nadu Tender Act 1998 and Tender Transparency Rules 2000 as amended from time to time.
b) The evaluation shall include State Goods & Service Tax (SGST), Central Goods & Service Tax (CGST) and Integrated Goods & Service Tax (IGST) and other applicable duties / levies.
c) Each Financial Proposal will be assigned a normalized Financial Score (FN). For financial evaluation, the total cost indicated in the Financial Proposal, will be considered.
33 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
d) The Authority will determine whether the Financial Proposals are complete, unqualified and unconditional. The cost indicated in the Financial Proposal shall be deemed as final and reflecting the total cost of services. Omissions, if any, in costing any item shall not entitle the Tenderer to be compensated and the liability to fulfill its obligations as per the terms within the total quoted price shall be that of the Tenderer. The lowest Financial Proposal (Fmin) will be given a financial score (SF) of 100 points. The financial scores of other proposals will be computed individually for each branch/head office as follows:
FN = Fmin /FB * 100 Where
FN = Normalised financial score of the bidder under consideration FB = Evaluated cost for the bidder under consideration Fmin = Minimum evaluated cost for any bidder for the BO/HO
e) Proposals will finally be ranked according to their combined normalized technical (TN) and normalized financial (FN) scores as follows: B = TW * TN + FW * FN Whereas, B is the combined score, and Tw and Fw are weights assigned to Technical Proposal (50% weightage) and Financial Proposal (50% weightage) that shall be 0.50 and 0.50 respectively.
f) The Selected Tenderer (R1) shall be the Tenderer having the highest combined score. The subsequent successive highest Tenderer (R2), (R3), (R4) etc. shall be kept in reserve and may be invited in its discretion for negotiations sequentially in case the first-ranked Tender withdraws or fails to comply with the requirements stated in this document.
16. Special cases
• In the event of more than one Tenderer scoring the same highest score (B) ; TIIC shall first consider the Highest Financial Score (FN) for ranking the Tenderers.
• In the event of further tie, highest technical (TN) score will be considered.
• In the event of still a tie, CA firm having higher number of years of concurrent audit experience will be considered successful one.
17. Award of Contract
The Selected Tenderer for Branch Office may, if necessary, be invited for negotiations. The negotiations shall be for reducing the price of the proposal on par with minimum price of similar Branch office and the selected Tenderer for Head Office, if necessary for reconfirming the Tenderer under this RfP. Issues such as understanding of the RfP, methodology and quality of the work plan shall be discussed during negotiations.
a) The Contract will be awarded after successful negotiations, with the selected Tenderer. If negotiations fail, the TIIC will invite the Tenderer whose score is
34 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
next higher to R1 and ranked as R2 for Contract negotiations. If negotiation with R2 fails the above process will continue with R3, R4 and so on till all the technically qualified firms are covered. Upon successful completion, the TIIC will inform the other Tenderers that their proposals have not been selected.
b) Upon finalization of Selected Tenderer, TIIC will issue the Letter of Award. The successful tenderer shall communicate his acceptance of the Letter of Award within 2 working days from the date of issue of Letter of Award.(Annexure XIV)
C) Disqualification Any form of canvassing / lobbying / influence / query regarding shortlisting, status, etc. will lead to disqualification.
18. Period of Contract:
The selected firm/ LLP of Chartered Accountant would initially be assigned the contract for a period of one year initially, and extendable for further two more years (extended for one year, at a time), provided the performance is found to be satisfactory on review and on sole discretion of TIIC, with not be more than 10% /without increase in professional/audit fee. The proposed assignment would be subject to periodical review at the discretion of TIIC and is liable to be terminated at any time, if not found satisfactory, by giving a written notice of 15 days.
19. Security Deposit
a) On receipt of the Letter of Award from TIIC, the successful Tenderer should remit a Security Deposit (SD) of Rs.15000/- or One month professional/audit fee which ever is higher, in the form of a Demand Draft or Bank Guarantee drawn on any Indian Nationalized/Scheduled Commercial Bank in favour of “The Tamilnadu Industrial Investment Corporation Limited”, payable at Chennai within 5 (Five) working days from the date of receipt of letter of award. The holding period of the Security Deposit shall be till a period of 90 days beyond the completion of the services by the Tenderer.
b) The EMD shall be returned to the successful Tenderer when the Tenderer furnishes the Security deposit and signs the Agreement.
c) If the Security Deposit amount is not paid or the contact/agreement is not signed within the time stipulated, the EMD remitted by the Tenderer shall be forfeited, besides cancelling the communication of award of the Tender.
d) Security Deposit amount remitted will not earn any interest.
20. Service Level Agreement / Agreement
The successful Tenderer should execute a Service Level Agreement (SLA) / Agreement as may be drawn up to suit the conditions on a non-judicial stamp
35 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
paper of value, as prescribed in law on the date of remittance of Security Deposit and shall pay for all stamps and legal expenses incidental thereto. In the event of failure to execute the agreement, within the time prescribed, the EMD/SD amount remitted by the Tenderer will be forfeited besides cancellation of the Tender.
21.Force Majeure
a) The successful Tenderer shall not be liable for penalty or termination for default if and to the extent that it’s delays in performance or other failure to perform its 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 tenderer and not involving the successful Tenderer’s fault or negligence, and not foreseeable. Such events may include, but are not restricted to, acts of the TIIC in its capacity as a buyer, wars or revolutions, terrorist attacks, fires, floods, epidemics, quarantine restrictions, freight embargoes and other acts of God. The decision of TIIC shall be final in this regard.
c) If a Force Majeure situation arises, the Tenderer shall promptly notify the TIIC in writing of such condition and the cause thereof. Unless otherwise directed by the TIIC in writing, the tenderer shall continue to perform its obligations under the Contract as far as is reasonably practical and shall seek all reasonable alternative means for performance not prevented by the Force Majeure event.
22. Deliverables
All the documents as per the deliverables should be submitted both in hard copies 3 Sets and in soft copies (in PDF) by the Concurrent Auditors as per the indicated frequency as below:
Deliverables To be sent to Frequency Flash Reports Head Office, IA Dept. Monthly, before 7th of every month Unit Inspection Report Respective Branch Monthly, before 7th of Manager, RA Head /RM & every month Physical Verification of Head office IA Dept. assets Report Respective Branch Monthly, before 7th of Audit Report Manager,RA Head /RM & every month. Head office IA Dept. Feed-back Report Respective Branch Quarterly, before 10th of about compliance of Manager, RA Head /RM & succeeding month audit by branches Head office IA Dept. Head office IA Dept. Bi-annually, before 15th of November/May every year.
♦ The Attendance Certificate duly certified by Branch Manager shall be submitted for payment of fees. Otherwise payment shall not be made.
36 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
♦ The audit firm shall follow time norms for completing the Audit and submitting the Audit report to Branch/Head Office (IA Dept). If there is any delay in submission of the report, 10% of the monthly audit fee will be deducted without any further reference to the Auditor.
♦ Over and above this, Audit Report is required to include immediate reporting of high risk issues to TIIC and the corrective action initiated by TIIC in that regard.
♦ Audit reports shall also include review of Action Taken Reports(ATR) and escalation of delays in action taken, if any.
23. Penalty
Monthly reports shall be submitted within 7 days from the end of month. Quarterly reports shall be furnished 10 days of the completion of the quarter. Bi Annual reports are to be furnished within 15 days of the completion of HY.
If the reports are not furnished within a grace period of 7 days from the end of due dates, 10% of audit fees would be deducted from the fees payable. .
24. Termination of Contract
TIIC may, at its sole discretion and at any time after giving 15 days notice can terminate the Contract and inform the CAs of TIIC’s decision by written instruction to that effect. In the event of the Contract being so terminated, the firm/ LLP shall take such steps as are necessary to bring the Services to an end, (including terminating any sub-contracts placed by the firm/ LLP) in a cost effective, timely and orderly manner. This will be in addition to TIICs right to allot the contract to another tenderer at the risk and cost of the successful Tenderer. No further correspondence will be entertained in this regard.
25. General Terms & conditions:
• It is expected that the selected firm will have necessary expertise, experience, capabilities and knowledge in the area, which shall broadly cover the areas listed below. The listing is not exhaustive and should be regarded as an outline only. The objective is to provide “best in Class” Concurrent Audit services to TIIC. Brief roles of the selected Concurrent Auditor are mentioned below:
• Conduct of Concurrent audit for TIIC covering branches/operating units as per the scope of concurrent audit decided by TIIC which is mentioned in Sl.No.2 of RfP-Broad scope of services for the concurrent auditor.
• Consolidation of audit findings over a period to identify process improvement opportunities and control gaps.
• Provide suggestions addressing process improvement opportunities and controls gaps to the Management.
37 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
• The applicant appointed as concurrent auditor shall nominate a CA or retired bank officer(Team leader) who will head the concurrent audit team as the "Designated Team Leader" duly authorised by the FCA partner of the CA firm/LLP to act on behalf of the firm. The Designated Team Leader would be required to submit his/her identity proof and address proof together with specimen signatures.
• The team leader allotted for audit of a branch/Head office, should not be changed without the approval of TIIC and if any changes are necessary to be made by the CA firm/Company, should be done only with the prior written approval of the TIIC.
• The audit team composition for Concurrent Audit and attendance requirements should be specified as under:
a) The designated FCA partner of the firm / LLP who shall visit the branch office at least 4 days in a month.
b) Chartered Accountant / Retired Bank/Financial Institution Official / Designated Team Leader who shall visit the branch preferably on all working days but for a minimum of 15 days in a month.
c) Chartered Accountant / Retired Bank/ Financial Institution Official / Designated Team Leader who lead the concurrent team should have the authority to sign off the disbursement notes.
d) Audit assistant who shall visit the branch preferably on all working days but for a minimum of 15 days in a month.
• A declaration to be furnished by the applicant that credit facilities availed by the firm or partners or firms in which they are partners or directors including any facility availed by a third party for which the firm or its partners are guarantor/s have not turned or are existing as non-performing assets as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would get terminated besides the firm being liable for any action under ICAI / RBI guidelines.
• The applicant must submit an undertaking that the firm / LLP does not have any professional relationship with any of the borrowers of TIIC nor will it in future accept professional relationship with any of the borrowers of TIIC during the period during which the firm / LLP acts as the concurrent auditor for TIIC.
• On appointment, the Applicant shall execute an undertaking of
fidelity and secrecy on its letterhead in the format prescribed by the Bank.
• The concurrent auditor should adhere to the audit coverage strictly as per the scope as may be decided by the Bank from time to time.
• The concurrent auditors should not undertake any other activities / assignment on behalf of the branch without obtaining the concurrence of the Audit & Fraud Management Vertical at Head Office, in writing.
38 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
• The concurrent auditor should immediately report Internal Audit Department (Head Office) as also to the Chief Vigilance Officer as well as Branch Managers concerned (unless the branch manager is involved), if any fraudulent transactions are detected.
• The concurrent auditor should attend Preventive Vigilance Committee (PVC) in the Corporation which discusses and deliberates on various operational and administrative aspects concerning Vigilance administration in the ROs/ BOs. The meeting of the PVC takes place at least once in a quarter in the succeeding month of every quarter at the concerned Corporate Office of the Bank.
• The concurrent auditors will co-operate with investigative body, regarding processing or execution of the consultancy contract or any matter related with discharge of contractual obligations.
• No out of pocket expenses or traveling allowance / halting allowance would be paid to the concurrent auditors for carrying out the audit. However, the service tax, education cess / GST etc. would be paid as applicable from time to time in addition to the basic fees. The payment to the concurrent auditors would be subject to deduction of tax at source at appropriate rates.
• Necessary arrangement would be made for providing space, workstation an access to systems (viewing rights only) to the concurrent auditors for ensuring smooth conduct of the audit. This would be the responsibility of the TIIC. The Branch-incharge will shoulder the responsibility of the arrangements.
• The Applicant shall ensure that the audit firm/ LLP or any sister / associate concern, is not conducting the statutory audit of the TIIC or any of its branches.
• The Applicant shall ensure that the audit be carried out in a professional manner and if any serious acts of omission or commission are noticed in their working, the appointment shall be cancelled after giving reasonable opportunity to be heard and the facts shall be reported to ACB /RBI / ICAI any other authority, for suitable action thereon by them.
• The Applicant shall ensure that it will not sub-contract the audit work assigned to any outside firm/ LLP or other persons even though such persons are qualified Chartered Accountants.
• The concurrent auditor shall be granted read only viewing access to the systems at the branch office.
• The concurrent auditors are required to plan the audit that it results in gradual shortening of the interval between a transaction and its examination by an independent person. The concurrent auditor shall perform substantive checking in key areas and emphasis should be on ‘on the spot’ rectification of deficiencies. The major deficiencies/aberrations noticed during audit should be immediately brought to the notice of Head Office/Controlling Office of the concerned branch/business unit of the bank.
• The concurrent auditor shall daily go through all the vouchers and books
39 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
of the branch for the previous day and identify areas to be scrutinised in detail.
• Should maintain and keep back up papers in support of observations made. • Any other terms and conditions of the assignment would be decided by the TIIC on a case-to-case basis.
Conflict of Interest:
Applicants must disclose in their application, details of any circumstances, including personal, financial and business activities that will, or might, give rise to a conflict of interest; this includes any sub-contractor, if they were awarded this contract. Where applicants identify any potential conflicts they should state how they intend to avoid such conflicts. TIIC reserves the right to reject any application which, in TIIC's opinion, gives rise or could potentially give rise to a conflict of interest.
Disclosures:
The applicant must disclose:
a. If they are or have been the subject of any proceedings or other arrangements relating to bankruptcy, insolvency or the financial standing of the applicant including but not limited to the appointment of any officer such as a receiver in relation to the applicant's personal or business matters or an arrangement with creditors or of any other similar proceedings.
b. If they are OR any of the applicant's staff have been convicted of, or are the subject of any proceedings, relating to:
• a criminal offence or other offence, a serious offence involving the
activities of a criminal organisation or found by any regulator or professional
body to have committed professional misconduct.
• corruption including the offer or receipt of any inducement of any kind
in relation to obtaining any contract, with TIIC or any contracting authority.
• failure to fulfill any obligations in any jurisdiction relating to the
payment of taxes or social security contributions.
Disclosure extends to any entity in the same group of the applicant (including but not limited to parent subsidiary and sister companies, and companies with common shareholders whether direct or indirect and parties with whom the applicant is associated in respect of this application / RfP).
If an applicant or related entity or any individual discloses details of any previous misconduct or complaint, TIIC will seek an explanation and background details from them. At the sole discretion of TIIC and assessment as to whether the applicant will be allowed to submit an application, decision will then be made by TIIC.
Indemnity The successful applicant shall exercise reasonable skill, care and diligence in the
40 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
performance of the assignment and indemnify and keep TIIC indemnified in respect of any loss, damage or claim howsoever arising out of or related to breach of contract, statutory duty or negligence by the firm/ LLP or its staff, agents or sub- contractors in relation to the performance or otherwise of the Services to be provided under this Contract. Assigning to Others
The successful applicant shall not, without the prior written consent of TIIC, assign or transfer or cause to be assigned or transferred, whether actually or as the result of take over, merger or other change of identity or character of the CAs, any of its rights or obligations under the Contract or any part, share or interest therein. Upon any such assignment or transfer, this engagement may forthwith be terminated by TIIC.
26. Other Conditions
(a) Conditional proposal in any form will not be accepted and the such tenders will be summarily rejected.
(b) TIIC reserves the right to relax or waive or amend any of the RFP conditions.
(c) The right of final acceptance of the proposal is entirely vested with TIIC and reserves the right to accept or reject any or all the Tenders in part or in totality or to negotiate or to withdraw/ cancel/ modify this proposal without assigning any reason whatsoever.
(d) After acceptance of the proposal by TIIC, the Tenderer will have no right to withdraw his proposal.
(e) The successful Tenderer shall not directly or indirectly transfer, assign or sublet the contract or any part, share or interest therein nor shall take a new partner without written consent of TIIC provided nevertheless any such consent shall not relieve the Tenderer from any obligation, duty or responsibility under the contract.
(f) Any notice regarding any problems, to the Tenderer shall deemed to be sufficiently served, if given in writing at his usual or last known place of business.
(g) In the course of discussion and instruction TIIC may disclose information of confidential and proprietary nature, knowhow, to the Tenderer. Such information shall be considered as confidential and shall not be disclosed in any firm.
(h) At any stage, even after award of contract, if information/basic eligibility criteria found by TIIC to be not fulfilled, the contract/agreement with the CA firm/Company will be terminated and the firm/company will be disqualified for 5 years.
41 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
27. Arbitration
(a) In case of any dispute in the proposal, including interpretation if any on the clauses of the bid or the agreement to be executed, the matter shall be referred by TIIC/ Successful Tenderer to an arbitrator who shall be selected by the Tenderer from the panel of arbitrators approved by TIIC within 15 days from the date of receipt of the letter from the TIIC along with the panel of arbitrators. If there is no reply from the Tenderer within 15 days, TIIC shall choose any of the arbitrators from the panel of arbitrators referred to above. The remuneration for the arbitrator and other expenses shall be shared equally by TIIC and the Tenderer.
(b) The venue of the Arbitration shall be at the Head office of TIIC, Chennai. The decision of the Arbitrator shall be final and binding on both the parties to the Arbitration.
(c) The Arbitrator may with the mutual consent of the parties, extend the time for making the award. The award to be passed by the Arbitrator is enforceable in the Court at Chennai city only.
28. Jurisdiction of the Court
Any dispute arising out of the RfP / tender process, non-fulfillment of any of the terms and conditions of Agreement signed by the Successful Tenderer or any other dispute arising out of the arbitration award will be subject to the jurisdiction of the Courts in the City of Chennai only.
SIGNATURE OF THE TENDERER: DATE: NAME IN BLOCK LETTERS: DESIGNATION: ADDRESS:
42 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
ANNEXURES
43 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
From ANNEXURE –I Name Technical Proposal Covering Letter for Address the Branch_________( Name of the branch ) / Head office Ph ( in the letterhead of the CA firm/Company) Fax E-mail Date:____________
: : : :
:
To The Chairman & Managing Director, The Tamilnadu Industrial Investment Corporation Limited, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035 Chennai-600035.
Sir,
Sub: Request for proposal for “Selection of Concurrent Auditor for undertaking Concurrent audit on Operations of Branch_________ ( Name of the branch ) / Head office ” -- Submission of Technical Proposal –Reg.
Ref: Your Tender Notice Ref …………. Vide notice dt. ..........
***************
With reference to your tender notice, we submit herewith our sealed tender for the “RFP for Selection of Concurrent Auditor for undertaking Concurrent audit on Operations of Branch_________ ( Name of the branch ) / Head office
We enclose the following documents:
1) RFP Document duly signed in each page and enclosed with Technical Proposal in token of accepting the Tender conditions.
2) Demand Drafts in favour of “The TIIC Limited, Chennai” towards the
following:
Sl No Particulars Amount (Rs.)
1 Tender Application Fee 1,000/- plus GST @18%
2 Earnest Money Deposit 15,000/-
44 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
3) Authorization letter/ Power of Attorney from the Tenderer for the person to sign the proposal.
4) Details of the Tenderer (as /per Annexure-II) 5) The copy of certificate of incorporation/registration and copy of
Memorandum and Articles of Association. 6) Copy of Registration Certificate (Form-C), in case of Partnership Firm. 7) Copy of PAN allotment Certificate/ PAN CARD issued by Income Tax
Department in case of Indian Company. 8) Copy of GST Registration certificate. 9) Copy of Registration with RBI/ any Nationalised Bank. 10) The Auditor Certified Turnover statement with Annual Report / certified
copies of Balance Sheet, Profit & Loss statement for the last 3 consecutive financial years i.e. 2017-18, 2018-19 and 2019-20. Consolidated annual turnover certificate as per Annexure III 11) Relevant experience of the Company/Firm as per Annexure-IV(c) 12) Form for Technical Eligibility as per Annexure – IV (a) and IV (b) 13) Undertaking letter of the Tenderer (Annexure-V) 14) CVs of the key personnel of the CA firm as per Annexure – VI (a) and CVs of the staff deployed having audit experience as per Annexure VI(b). 15) Team composition and Task assigned – Annexure VII 16) Declaration for not having black listed either by TIIC or by any other Govt. agencies as on date (as per Annexure-VIII). 17) Declaration for not having tampered the RFP documents downloaded from the website www.tenders.tn.gov.in/www.tiic.org (Annexure-IX). 18) Notarized translated English version of the documents in a language other than English/Tamil, if any.
Yours faithfully,
SIGNATURE OF THE TENDERER Encl: As stated above in two separate sets 1. In Form A – sl.no.1 to 11 along with Form IV A 2. In Form B – sl.no.3 to 11 & 13 to 18 along with Form IV B
45 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure -II
Details of the Tenderer
Sl.No. Particulars Description/Details 46 | P a g e A Name of Tenderer
B Contact Details
Registered Office Address
Telephone No.
Fax
Email
Website
C Incorporation Details
Incorporation Number
Date of Incorporation
Authority
D Name of Authorized
Signatory
Position
Telephone
Fax
Mobile
Email
E Number & Address of Offices
In Chennai
Outside Chennai
F Distance of audit office from the applying branch/HO of TIIC (In Km.) RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Signature of Authorised signatory
Annexure -III ANNUAL TURN OVER CERTIFICATE
The Annual turnover of M/s.................................................... for the past three years are given below and certified that the statement is true and correct.
Sl.No. Year Turnover (Rs. in lakhs)
1) 2017-2018
2) 2018-2019
3) 2019-2020
Total
Note: Annual Turnover in each of the three consecutive financial years will be considered i.e. F.Y. 2017-18, F.Y. 2018-19 and F.Y. 2019-20.
DATE :
SIGNATURE OF THE TENDERER (Authorised Signatory)
SIGNATURE OF CHARTERED ACCOUNTANT (With seal and Address)
47 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure -IV (a)
( PART I / FORM A) ELIGIBILITY CRIETERIA for Concurrent Audit of Branch
Operations/HEAD OFFICE A) Audit Firm / LLP / Company Details: (TENDERER)
S. No. Requirements Compliance Remarks
The Tenderer should be a Chartered Yes/No Accountant Firm / LLP /Company with year of establishment.
The Tenderer should have knowledge and
1 experience in carrying out audit works and other day to day operations.
Valid registration / Certificate of Practice from the Institute of Chartered Accountants of India for the firm/ company / LLP (furnish documentary proof).
Whether the firm / LLP / Company is Yes/No
2 empanelled with RBI / any Nationalised Bank (furnish documentary proof) and
its validity is in currency.
Minimum three years of previous track Yes/No record of carrying out such audits in other Financial Institutions / Public Sector / Private Sector Banks mainly in the area of credit dispensation and other day to day 3 operations of the Financial Institution / bank (furnish documentary proof of the the award and completion certificate from the Bank/Financial Institution concerned).
Regular set-up, either Head Office or full- Yes/No
fledged Branch Offices at respective
locations (locally) of TIIC branches (furnish
4 the details regarding branch offices, if any) subject to verification by TIIC. If
found to be false, such tenderer will be
summarily rejected and next tenderer in
reserve will be considered.
48 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Be the CA Firm / Company with minimum
5 Annual Turnover of Rs.20.00 lakhs in Yes/No FY 19-20 (Audited financial statements
for the FY 19-20 shall be enclosed
Note: All the relevant details & documentary evidences are to be furnished. The above is only a format. Information may be submitted in additional sheets.
SIGNATURE OF THE TENDERER
49 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure -IV (b) Format for CA Firm’s Technical Evaluation
( PART I / FORM B) Technical Evaluation for Concurrent Audit of Branch Operations B) Audit Firm / LLP / Company Details: (TENDERER)
S. No. Requirements Compliance Remarks
1(a) Name of the Chartered Accountant Firm / Yes/No LLP / Company with Date of establishment Yes/No
(b) Whether CA firm/LLP/Company have minimum 3 partners/directors (Furnish
documentary Proof)
2 Be the firm with Knowledge and experience Yes/No in carrying out audit work and other day to day operations for a minimum 3 years (Furnish documentary Proof)
3 Be a Partnership firm / LLP / Company of Yes/No Chartered Accountants of which 2 partners or directors should be Practicing Chartered Accountants. Details of each partner / director including experience, qualification etc. and their Registration number with CA Institute (furnish a detailed list of all the partners / directors as per format given in – Annexure VI).
4 Minimum three years of previous track Yes/No record of carrying out such audits in other Financial Institutions / Public Sector / Private Sector Banks mainly in the area of credit dispensation and other day to day operations of the Financial Institution / bank (furnish details in Annexure IV(c) alongwith the documentary proof of the award completion certificate from the Bank/Financial Institution concerned).
Valid registration / Certificate of Practice Yes/No
5 from the Institute of Chartered Accountants of India for the firm/ company
50 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
6 (a) / LLP (furnish documentary proof). Yes/No (b) Yes/No 7(a) Whether the firm / LLP / Company is Yes/No empanelled with RBI / any Nationalised 7(b) Bank (furnish documentary proof and its Yes/No 8(a) validity in currency) Yes/No Yes/No 9 Whether empanelled with CAG (Furnish Yes/No 10 documentary proof)
Availability of suitable infrastructural facilities including office set up, adequate manpower-minimum 3 (other than partners/directors) who are specialized in the area of audit of Branch Operations mainly in the area of credit dispensation and other day to day operations of the Financial Institution / bank. Team Leader should be a qualified CA/retired official of Bank/Financial Institution not less than cadre of Manager and other Team Member- furnish (CV as per format given in Annexure – VI(b) and annexure VII) for Team Compositions.
The audit team shall visit branch/HO of TIIC on daily basis/in any case not less than 15 days in a month. The partner/director shall visit the branch/HO of TIIC at least once in a week / not less than 4 days in a month or as and when required by the Corporation
Regular set-up, either Head Office or full- fledged Branch Offices at respective locations (locally) of TIIC branches (furnish the details regarding branch offices, if any) subject to verification by TIIC. If found to be false, such tenderer will be summarily rejected and next tenderer in reserve will be considered.
The firm / LLP / Company shall ensure that the audit firm / LLP / Company or any sister / associate concern is not conducting the statutory audit of TIIC (undertaking to be given).
The firm / LLP / Company shall agree to
51 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
execute undertaking of fidelity and secrecy, Declaration of True Information, Letter of Acceptance and Declaration of Non- disqualification on its letterhead in the format (as per the enclosed Annexure XIVa, XIVb and XVI) prescribed by the Corporation, if the contract assigned. (Declaration to be enclosed)
11 The firm / LLP / Company shall ensure Yes/No that the audit be carried out in a professional manner and in case of any misconduct & negligence, the Corporation is its sole discretion report the matter to ICAI/RBI/CAG as it may deem necessary. (undertaking to be given).
12 The firm / LLP / Company shall ensure Yes/No that it will not sub-contract the audit work assigned to any outside firm / LLP / Company or other persons even though such persons are qualified Chartered Accountants (undertaking to be given).
13 A declaration to be furnished by the firm / Yes/No LLP / Company that credit facilities availed by the firm / LLP or its partners or Company or its directors or firms or LLPs or companies in which they are partners or directors including any facility availed by a third party for which the firm / LLP or its partners or company or its directors are guarantor(s) have not turned or are existing as non-performing assets as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would get terminated besides the firm being liable for any action under ICAI / RBI guidelines (undertaking to be given).
14 The firm / LLP / Company must submit a Yes/No undertaking that the firm / LLP / Company does not have any professional relationship with any of the borrowers of TIIC nor will it in future accept professional relationship with any of the borrowers of TIIC during the period during which the firm / LLP / company acts as
52 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
the concurrent auditor for TIIC (undertaking to be given).
Be the CA Firm / Company with minimum
15 Turnover of Rs.20.00 lakhs in FY 19-20 Yes/No (Audited financial statements for the FY
19-20 shall be enclosed- Annexure III)
Note: All the relevant details & documentary evidences are to be furnished. The above is only a format. Information may be submitted in additional sheets.
Necessary undertakings called for the above at 9,10,11,12,13 & 14 shall be given in the letter head of the CA firms/LLP/Company either individually or combined together as per Annexure-V, shall be enclosed.
SIGNATURE OF THE TENDERER
53 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure - IV (C)
Format for Firm’s Relevant Experience for Technical Evaluation
( PART 1 - Annexure to Form B) C) Details of Audit of Branch Operations mainly in the area of
credit dispensation done in banks / FIs
1. Details of Statutory /Branch audits of various banks’ branches / Financial Institutions##
S. No. Name of the Bank Branch Year of Audit / Period / Financial Institution (From - To)
[Data required Since establishment of your firm]
2. Details of Concurrent Audits of various banks’ branches / Financial Institutions ##
S. No. Name of the Bank Branch Year of Audit / Period / Financial Institution (From - To)
[Data required Since establishment of your firm]
## Documentary evidences duly signed by Authorised Signatory of the tenderer shall be enclosed without fail.
54 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
ANNEXURE-V
UNDERTAKING
(To be furnished in the letter head of CA firm/LLP/Co.)
I/We, on behalf of the firm/LLP/Company, further declare and undertake the following:
a) None of our partners / directors / shareholders is an officer / employee
of your Corporation.
b) Our Firm / LLP / Company and our partners / directors / shareholders are not otherwise disqualified to accept the audit in terms of Section 141 of the Companies Act, 2013.
C) We also confirm that we are full time practising Chartered Accountants/ and are Partners /Directors of the applicant firm/Company and are not employed elsewhere.
d) The firm / LLP / Company or any sister / associate concern is not conducting/ the statutory audit of TIIC at present. e) The firm / LLP / Company undertakes to carry out the audit in a professional manner and in case of any misconduct & negligence, the Corporation is its sole discretion report the matter to ICAI/RBI/CAG as it may deem necessary. f) The firm / LLP / Company undertakes that it will not sub-contract the audit work assigned to any outside firm / LLP / Company or other persons even though such persons are qualified Chartered Accountants g) The firm / LLP / Company undertakes that credit facilities availed by the firm / LLP or its partners or Company or its directors or firms or LLPs or companies in which we are partners or directors including any facility availed by a third party for which the firm / LLP or its partners or company or its directors are guarantor(s) have not turned or are existing as non- performing assets as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would get terminated besides the firm being liable for any action under ICAI / RBI guidelines. h) The firm / LLP / Company undertakes that the firm / LLP / Company does not have any professional relationship with any of the borrowers of TIIC nor will it in future accept professional relationship with any of the borrowers of TIIC during the period during which the firm / LLP / company acts as the concurrent auditor for TIIC. i) We also confirm that we will not give any room for disqualification during the course of audit for any of the reasons mentioned above.
55 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office j) We hereby confirm that we fully satisfy the eligibility criteria prescribed by TIIC by applying for audit of operations of Branch Offices/Head Office of TIIC and if found ineligible at any point of time, out contract will be cancelled and security deposit will be forefeited.
SIGNATURE OF THE TENDERER (Partner of Firm/LLP/ Director of Company)
56 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure -VI (A) Curriculum Vitae for Key Personnel Curriculum Vitae for proposed Professional Staff (Partners)
Sl.
No Details
.
1 Proposed Position [only one candidate shall be nominated for each position Expert]
2 Name of Partner / Director [Insert full name]
3 Date of Birth
4 Nationality
Education[Indicate college/university and other
5 specialized education of staff member, giving names of institutions, degrees obtained and dates of
obtainment]
6 Total No. of years of experience
7 Total No. of years with the firm
8 Areas of expertise and no. of years of experience in this area (as required for the Profile - mandatory)
9 Certifications and Trainings attended
10 Details of Involvement in Projects (only if involved in the same):
11 Membership of Professional Associations
Employment Record [Starting with present position list
12 in reverse order, giving for each employment (see format here below): dates of employment, name of
employing organization, positions held]
From : To:
Employer :
Position(s) Held :
13 Pan No.
14 Aadhar No.
15 Work Undertaken That Best Illustrates Capability to Handle the Tasks Assigned
Name of the Assignment :
57 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Year : Location : Main Project Features : Positions Held : Activities Performed : I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes me, my qualifications, and my experience. I understand that any willful misstatement described herein may lead to my disqualification or dismissal, from the assignment if engaged. ______________________________________________________ Date:______________ [Signature of staff member or authorized representative of the staff]Day/Month/Year
58 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure VI (B) Curriculum Vitae for Employees/Audit staff
Curriculum Vitae for Team Leader
Sl.
No Details
.
1. Proposed Position [only one candidate shall be nominated for each position ( Team Leader )
2. Name of Staff [Insert full name]
3. Date of Birth
4. Nationality
5. PAN No
6. Aadhar No
Education[Indicate college/university and other
5. specialized education of staff member, giving names of institutions, degrees obtained and dates of
obtainment]
6. Total No. of years of experience
7. Total No. of years with the firm
8. Areas of expertise and no. of years of experience in this area (as required for the Profile - mandatory)
9. Certifications and Trainings attended
10. Previous audit experience in Firm/Banks/FIs (Name / Period)
11. For retired bank /FI official, details of experience in the cadre of Manager and above
I, the undersigned, certify that to the best of my knowledge and belief, this
CV correctly describes me, my qualifications, and my experience. I
understand that any willful misstatement described herein may lead to my
disqualification or dismissal, from the assignment if engaged.
______________________________________________________ Date:______________ [Signature of staff member]Day/Month/Year
59 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure VII TEAM COMPOSITION AND TASK ASSIGNED
Tasks
proposed
to be
Resource Name of Qualification Area of Assigned Category Staff & experience Expertise as part of
the
assignme
nt
Team Leader Team Member
SIGNATURE OF THE TENDERER
60 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure -VIII
CERTIFICATE
Date: __________
Certified that M/s.........................................................../ the firm /company or its partners / shareholders have not been black listed so far by TIIC or any State or Central Government of India /Bank /Financial Institution in India as on date.
SIGNATURE OF THE TENDERER (with seal and address)
61 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Annexure IX
Declaration Form (A)
Date: __________
a) I/We ……………………………………………………………………. having our office at ……………. do declare that I/We have carefully read all the conditions of tender made available to us by TIIC, for the tenders floated vide tender ref.no._____________________ for the “Selection of Concurrent Auditor for undertaking Concurrent audit cum internal audit on Operations of branches of TIIC/Head office”.
b) I/We have downloaded the tender document from the internet site www.tenders.tn.gov.in / www.tiic.org and I / We have not tampered / modified the tender document in any manner. In case, if the same is found to be tampered / modified, I/ We understand that my/our tender will be summarily rejected, and full Earnest Money Deposit will be forfeited and I /We am/are liable to be banned from doing business with TIIC or prosecuted.
SIGNATURE OF THE TENDERER
(WITH SEAL AND ADDRESS)
62 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure X
TENDERER’S REQUEST FOR CLARIFICATION
Name and Address of Name and Position of Contact Details of the the Person Organization / Organization submitting request Authorized submitting Representative Request
Tel: _______________
Fax: ______________
Email:<email id
Sl. Reference(s) Content of Tender Points of No. (Section, Page) requiring clarification
1 Clarification required 2 3
SIGNATURE OF THE TENDERER (WITH SEAL AND ADDRESS)
63 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XI – Financial Proposal FINANCIAL PROPOSAL (PART II) Financial Proposal Covering Letter for the Branch_________( Name of the branch ) / Head office
From,
Name :
Address :
Ph :
Fax :
E-mail :
To,
The Chairman & Managing Director, The Tamilnadu Industrial Investment Corporation Limited, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035 Chennai-600035.
Sir,
Sub: Request For Proposal for “Selection of Concurrent Auditor for undertaking Concurrent audit on Operations of Branch _________ ( Name of the Branch )/Head office of TIIC- Submission of Financial Proposal – Price Offer-Reg. Ref:- Our Technical Proposal submitted for the above mentioned tender.
----
In continuation of our above Technical Proposal, we submit herewith the Financial Proposal for Request for Proposal for “Selection of Concurrent Auditor for undertaking Concurrent audit on Operations of branch _________ ( Name of the Branch )/ Head office of TIIC as specified in this RFP document. We agree to abide by the terms and conditions stipulated by TIIC and also agree to complete the entire contract, at the fees quoted by us. The fee quoted and approved by TIIC in this proposal will hold good as per RFP conditions.
Yours faithfully,
SIGNATURE OF THE TENDERER
64 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XII - Price Bid (Lumpsum)
Name of Work : Request for proposal for Concurrent Audit of Operations of TIIC branch office/ Head office
Financial Proposal (PART II)
Name of the Branch / Head Office: -------------------
Description Total fees GST Total (inclusive (INR) of all taxes in
Per month INR) For 12 months.
Lumpsum fees for
undertaking (Concurrent)
Audit of Operations of
TIIC’s branch
Offices/Head office and
furnishing connected
reports as required by
TIIC.
Note:
Lump sum fee for
providing services
including out of pocket
expenses and all other
expenses.
(Amount in Words Rupees ………………………………………………………. ………………………………………………………………………………………………… ……………………………………………………………………………………………….)
Yours faithfully,
Signature of the Tenderer.
65 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XIII
Checklist of Documents Documents to be enclosed in Part-I:
Sl. Checklist Enclosed Reference in No. (Yes/No) the Bid
(Page No.)
A covering letter on letter head of
1. Tenderer addressed to The Chairman & Managing Director, TIIC (As per
Annexure-I)
RfP document duly signed in each
2. page and enclosed in token of
accepting the RfP conditions.
Demand Drafts in favour of “The TIIC
Limited, Chennai” towards the
following:
Sl Particulars Amount No (Rs.) 3. 1 Tender 1,000/-
Application Fee plus GST
@18%
2 Earnest Money 15,000/-
Deposit
Authorization letter/ Power of Attorney 4. from the Tenderer for the person to
sign the proposal.
5. Details of the Tenderer (as per Annexure-II)
The copy of certificate of 6. incorporation/ registration.
Copy of Registrar Certificate in case of 7. Partnership Firm.
Copy of PAN allotment Certificate/
PAN CARD issued by Income Tax 8. Department in case of Indian
Company
9. Copy of GST Registration certificate.
Copy of Registration with RBI/ any 10. Nationalised Bank.
66 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
a) The Auditor certified Turnover statement along with Annual Report / certified copies of Balance Sheet, Profit & Loss statement for the last 3 11. consecutive financial years i.e. 2017-18, 2018-19 and 2019-20. b) Consolidated annual Turnover certificate (Annexure-III) Relevant experience of the 12. Company/Firm as per Annexure IV (C)
Form for Technical Eligibility as per 13. Annexure IV (a) Form A & IV (b)Form B
a) CVs of key personnel / professional staff (Minimum 2 practising CAs) – Annexure VI(a).
b) CVs of the Team leader to be 14. deployed (CA/Retired Bank Employee
not less than the rank of Manager) – Annexure VI(b)
c) Team composition and task
assigned(Annexure VII)
Declaration for not having black listed
either by TIIC or by any other govt. 15. agencies as on date (as per Annexure-
VIII).
Declaration for not having tampered
the Tender documents downloaded
16. from the website
www.tenders.tn.gov.in/www.tiic.org
(as per Annexure-IX).
Notarized translated English version of 17. the documents in a language other
than English/Tamil, if any.
Documents to be enclosed in Part-II
Sl. Checklist Enclosed No. (Yes/No)
1. A covering letter on the letter head addressed to 67 | P a g e
The Chairman & Managing Director, TIIC(as per
Annexure-XI)
2. Price Bid as per Annexure-XII of the Tender document RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Checklist Enclosed No. (Yes/No)
3. Declaration as per format given above - (XIV(a))
4. Declaration of fidelity and secrecy - (XIV(b))
5. Proforma letter of Acceptance - (XV)
6. Letter of confirmation regarding non disqualification of audit firm/LLP/Company --
(XVI)
7. Do’s and Don’ts for Concurrent Auditors – XVII
Note: Tenders submitted in unsealed cover would summarily be rejected.
SIGNATURE OF THE TENDERER
68 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
ANNEXURE – XIV (A)
Declaration
We have reviewed all the terms and conditions of the Tender document and would undertake to abide by all the terms and conditions contained therein.
We hereby declare that the information submitted above is complete in al l respects and true to the best of our knowledge. We understand that in case any discrepancy or inconsistency or incompleteness is found in the information submitted by us, our proposal / tender is liable to be rejected.
I / We hereby declare that there are, and shall be, no deviations from the stated terms in the Tender / RfP Document.
Signature of Tenderer with Company seal.
Note:
1. The rate shall be quoted as per the above format. Taxes should be indicated separately.
2. The rates shall be quoted in figure and words.
3. Conditional tenders will not be accepted, and value once fixed shall be valid for the entire period of the contract.
4. In case of discrepancy in the bid quoted between figures and words, the lowest will prevail.
69 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XIV(b)
DECLARATION OF FIDELITY AND SECRECY (on the letter head of CA firm)
I, Managing partner/Director of _______________________________, Chartered Accountants firm / LLP / company (firm name) duly authorised by the firm / LLP / company (hereinafter referred to as “firm”) on behalf of the firm, hereby declare that the firm will faithfully, truly and to the best of our skill and ability execute the duties required of the firm as Concurrent Auditor of The Tamilnadu Industrial Investment Corporation Limited (TIIC) and which properly relates to task entrusted to the firm by TIIC of conducting of concurrent Audit of _______________, the Branch/HO of TIIC.
I, on behalf of the firm, also undertake and declare that the assignment of conducting Audit entrusted to the firm will be done only by appropriately professionally qualified auditors employed by our firm and under any circumstances, the firm shall not, except with the express written consent of TIIC entrust the work to any other audit firm(s) on contract or on any other basis.
I, on behalf of the firm, further declare and undertake, that the firm will not, except under legal compulsion or as a statutory obligation (under due information to TIIC), either during or after completion of any transaction, project or assignment entrusted to the firm, disclose to any person not legally entitled thereto, any information relating to the affairs of TIIC or any information disclosed / furnished by TIIC in connection with the assignment or the information collected / obtained during the course of the assignment as Concurrent Auditor of TIIC which shall include any copy, abstract, sample, note, information/data held on systems or module thereof (confidential information). I, on behalf of the firm, further undertake that our obligations respecting disclosure and confidentiality shall continue to be binding even after the completion of the assignment.
I, on behalf of the firm, also declare and undertake that the firm shall not commercially use or disclose any Confidential Information or any materials derived there from to any other person or entity other than persons in the direct employment who have a need to have access to and knowledge of the Confidential Information solely for the Purpose authorized above. The firm shall take appropriate measures prior to
70 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
disclosure to such employees to assure against unauthorized use or disclosure.
I, on behalf of the firm, further undertake to disclose to TIIC in case, the firm happens to be the auditors to the concerned borrower unit/ associate concern, whose concurrent transaction/case is to be audited by the firm on behalf of TIIC.
Signature & Seal Registration No. of ICAI
Place: Date:
71 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XV (Proforma Letter of acceptance to be obtained on firm’s Letter head)
Date: __/__/____ To The Head of the Dept. of IA & ISO Dept., The Tamilnadu Industrial Investment Corporation Ltd, No. 692, Anna Salai, Nandanam, Chennai – 600 035.
Dear Sir,
Sub: Concurrent Audit on Operations of _________ Branch/Head Office. -------------------
With reference to your letter No. TIIC/HO/IA/2021-22 dated __.__.____ on the subject matter, we do hereby convey our acceptance to undertake Concurrent audit of your above mentioned branch / HO Departments on the terms and conditions mentioned therein.
As desired by you, we send herewith the Declaration of Fidelity and Secrecy and Declaration regarding non-disqualification etc., in the enclosed proforma.
Yours faithfully,
(Chartered Accountants) Name of Signatory & Rubber Stamp of Firm
Encl: as above.
72 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XVI Letter of confirmation regarding Non-disqualification of Audit firm / LLP / Company (to be submitted on letter head) To The Head of the Dept. of IA & ISO Dept., The Tamilnadu Industrial Investment Corporation Ltd, No. 692, Anna Salai, Nandanam, Chennai – 600 035.
Dear Sir, Sub: Concurrent Audit of your _______ Branch / HO – reg.
With reference to your letter No. TIIC/HO/IA/2021-22 dated __.__.____ we confirm the following regarding our eligibility/qualification for appointment as Concurrent Auditors:-
i) None of our partners / directors / shareholders is an officer / employee of your Corporation.
ii) None of our partners or Associates firms or sister concern or Branch office, is presently assigned with Statutory Audit of your Corporation.
iii) Our Firm / LLP / Company and our partners / directors / shareholders are not otherwise disqualified to accept the audit in terms of Section 141 of the Companies Act, 2013.
iv) We also confirm that we are full time practising Chartered Accountants and are not employed elsewhere.
v) We undertake not to subcontract the audit work assigned to us to any other third party or person / firm / LLP / company.
vi) We do/will not have any professional or commercial relationship with the borrowers of the branch/HO Departments which we are auditing.
vii) We also confirm that we will not give room for disqualification during the course of audit for any of the reasons mentioned above.
Yours faithfully,
Name of Signatory & Rubber Stamp of Firm
73 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XVII
DO’S AND DON’TS FOR CONCURRENT AUDITORS Do’s
The Concurrent Auditors should
1. Pre-inspection study of the branch / Head Office by going through the related reports and pre requisites documents.
2. Prepare proper audit plan based on 1 above.
3. To maintain utmost secrecy with regard to inspection program and its findings.
4. Auditors to display team spirit and avoid misunderstandings / arguments in the presence of auditees.
5. Inspection of the branch / Head office departments has to be commenced before commencement of business hours to verify the physical cash, security arrangement etc.
6. To act in a normal friendly fashion and help to improve normal working of the branch / head office.
7. Discuss his/her findings with branch / HO department officials on daily basis and try to rectify the defects then and there itself.
8. Give auditees a chance to express their opinion while discussing the issues. Getting proper explanation in a co-operative atmosphere will save precious time.
9. In case of difference of opinion with auditee, the auditor should first discuss with the leader of his/her team. Further discussion with Regional Manager of concerned branch / HoD of concerned department, if required, may be made. Besides, discussion if required with the HoD, Internal Audit Department, Head Office can also be made for guidance / instruction.
10. If the inspecting officer comes across any information which causes him/her to suspect any element of fraud, gross negligence, gross
74 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office incompetence or similar unfavorable actions or tendencies, he/she should report the matter immediately.
11. The members of the team should keep continuous dialogue with the leader of the team on important findings and be guided by his advice.
12. Auditor should maintain a neat appearance and a courteous manner.
Don’ts
1. Auditor need not act overly reserved or unfriendly in order to maintain his/her independence as an inspecting officer. A forbidding attitude on his/her part may well cause others to adopt the same attitude towards him/her. This can adversely affect the work entrusted to the inspecting officer.
2. Auditor should not get involved in heated argument with the auditee office/officials.
3. Auditor should not give orders to auditee and seek requirements from the officer assigned to assist him on a particular job. The concerned officer would issue the necessary orders to their staffs if he/she accepts auditor’s suggestions and recommendations.
4. Auditor should not delay the submission of audit report.
5. Auditor should not discuss sensitive matters of the auditee with others.
75 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Annexure XVIII
Date :
FLASH REPORT
Name of the CA Type of Audit Name of Branch Period of Audit
Audit conducted during
The major observations indicated in the Audit Report dated __________ are given below:
1) Frauds / Serious Lapses
a)
b)
c)
2) Revenue Leakages
a)
b)
c)
3) Deviations in DoP
a)
b)
c)
4) Any other major observations
Signature of Concurrent Auditor. 76 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Annexure XVIX
UNIT INSPECTION REPORT
1. Name of the Branch Thiru. 2. Name of the Audit Official
3. Date of Inspection 4. Name of the Unit 5. Location: Factory:
Office:
6. Type of the Unit ( Rs.in lakhs) (or nature of Business)
7. Name of the Proprietor 8. Category/Asset
Classification of the unit 9. Information on working
results As ascertained from the unit A i) Monthly Turnover ii) Monthly Expenses iii) Surplus / Net Profit
B Previous year working 31/03/ (Rs. in lakhs) results (if available) Working Results Turnover Net Profit Cash Profit
Liabilities: Capital Reserves & Surplus Secured Loans – TIIC
- Bank - Others
10. Details of Insurance cover Insurance valid up to / / for
and Rs. lakhs.
Its adequacy
77 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
11. Details of Loan Account Position: As on / / (Rs. in lakhs)
A/C No. Date of Amount Amt. Pl. OVERDUES Prl. Int. Others Sanction Sanctione Disbursed O/s
d
12. Details of Working Capital Facilities enjoyed
A. Name and Address of the Bank
B. Facility enjoyed C. Whether they are regular in
Meeting the commitment of the Banker
D. Asset Category in Bank
13. Is the unit working on Single/Two/Three shifts
14. Whether all the assets Funded are available
15. Sales during last 3 months Rs. lakhs
16. Power consumed in Last 3 months
17. Number of workers on Rolls Admn. Nos Skilled labours Nos Unskilled Nos
18. The Inspection Official shall furnish the details such as:-
Installed Actuals
Capacity (Rs. in (Rs. in lakhs)
lakhs)
a) Present utilization capacity
b) If it is below the capacity
assumed at the time of
sanction reason be indicated
for the same
c) Whether project is
implemented as envisaged
in the scheme
78 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
d) Is the unit attempting any expansion
19. In case of overdues, reason or problem
in servicing the loan :
i) Diversion of funds }
ii) Lack of Orders }
iii) Dispute between promoters }
iv) Any other reasons }
20. Any other remarks by the Audit Officials/
Overall observation in brief :
CONCURRENT AUDITOR
79 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
ANNEXURE - XX
Audit report for the period(from ________ to ________)
Assets Verification for which disbursement made from _______ to _____-
Branch :
Physical verification by:_______________________(name and Designation of auditor )
S. Name Typ Date/ Disburseme Date Amt Cumula Details of Date of Availability Remark L. of the tive assets inspecti of assets s N unit e of Amo nt note of disb disbd on o Yes/no loa unt Disbm d
n sanc t
tione No Date
d
CONCURRENT AUDITOR
80 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office ANNEXURE - XXI
AUDIT REPORT FORMAT -- (BRANCH)
Confidential
Brief on Audit :
1 Name of the Branch / Region
2 Name and Designation of Branch In-charge
3 Audit for the period of 4 Audit team members 5 Audit Duration
INTRODUCTION
(i) Staff position of the BO as on ________(at the end of audit period) (including temporay staff)
S.no Name of staff Designation Work allotted
(ii) Branch Performance
Previous audit period ended Rs. in lakhs Current audit period ended on( ) on( )
Annual Actual % Annual Actual %
Target Target
Sanction TL
81 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
BFS Disbursement TL
BFS Recovery – Principal
- Interest -Written off principal
(iii) Asset portfolio Opening as on _____ Rs in lakhs S.no Asset type (beginning of audit Closing as at the end of period) __________ No of Amount (Audit period) units O/s No of Amount units O/s
1 STD
SMA 0
SMA 1
SMA 2
2 S.STD
3 D I
4 D II
5 D III
6 LOSS
7 W.OFF
TOTAL
(iv) Fresh NPA Slippage during audit period(Standard to Sub Standard): ( individual case wise)
S.n Name of the unit Prin Overdues Rs in lakhs o cipal Action Audit O/s Prl Int Other taken by observation dues B.Office s
82 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
(v) The Audit of ______(Name of auditee office) was conducted by ____(Name of Auditor) comprising Shri/Smt. _____________(names and designations of members of Auditor) during the period from ____________to_______, as per the audit schedule
(vi) All audit observations of Part A and Part B were discussed by the Audit officials on ______(date of holding concluding discussion) in detail with Shri_________, (name and designation of In-charge) of _________(name of auditee office / HO Department), in the presence of ________________,(other officials with names and designations who were present during discussions). The BO / FO In- charge agreed with all/ all (except those enumerated in the appendix) audit observations and assured compliance thereof in a time bound manner. The views and comments of BO officials on major audit observations, wherever required, have been suitably incorporated in such observations. The audit report in Part A and Part B is appended.
(vii) Further, the uncomplied audit observations of the previous period (s) (if any) along with latest compliance furnished by the auditee office were also discussed with the in-charge of the auditee office whose comments on / reasons for not furnishing full compliance of these pending audit observations are given in below
Period of audit Pending query Present stage Reason for Auditors remark pending as per auditee statement
.
Auditor may please note the following for (c) above : All pending audit observations [audit period wise ] may be listed as per format with the status of latest compliance obtained from the auditee office and further course of action proposed / suggested by the Auditor concerned. Further, these pending observations may specifically be discussed with in-charge of the auditee office for early compliance
83 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
The difficulties / practical problems being faced by the auditee office in furnishing full and satisfactory compliance may also be briefly mentioned by auditor in the report.
(viii) Observations complied during the course of the audit :
Audit observations corrected / complied with by the auditee office during the course of current audit are given below.
Area of audit Audit observations Correction/compliance Auditors remark carried out (Subject nameand
S.No)
[It is reiterated that audit team should endeavour to get maximum number of audit observations rectified / complied during course of the audit itself].
Branch Office’s responsibility:
(1) Branch Office to initiate rectification process immediately and submit the initial compliance report within 7 days to respective IAD Office.
(2) The copy of this report duly signed to be kept with In-charge of the BO for future references, treated as confidential, to be used for the intended purpose only and the circulation of the report should be limited to the recipients of the report.
Signature of Auditors Signature Of Auditee Office (Name/s, Grade & Signature)
(Auditor) (Branch In-charge)
Place: Date:
Enclosures: Part A,Part B Appendix I ,Appendix II,Appendix III Others (if any)
84 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Part A
1. Sanction
1.1.a)Sanctions during audit period from ______ to ______
Rs in lakhs
Sl. Name of the unit Date of Assistance Scheme Sanction Availability Terms Present KYC No. Sanction sanctioned Authority of minutes and status compliance Documented/ Yes/no/partly (Rs.lakh) Yes/No conditions Disbursed issued on /lapsed
1.1.b) Observations - individual case wise
Sl. Name of the unit Audit observations Branch office Reply No.
Note: Auditor may include comments on a) The master data updation for sanction cases in the applicable software are carried out and verified for it’s correctness (In case, there are no shortcomings in the areas under 1.1 (a) and (b), the following paragraph may be added in the report).
"Appraisal Note and other papers pertaining to sanction of financial assistance in the above cases have been perused by the audit team and found to be generally in order as per the Corporation’s credit policy and guidelines / instructions and other circulars issued by HO from time to time.”
If there is no deviation, please mention that “No specific deficiency/ shortcoming has been observed”.
1.2.a) Closure / Rejection of Cases [ under all scheme of assistance]
Details regarding loan proposals, which were rejected / closed by the BO/FO during the audit period along with reasons therefor in brief are given below.
85 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Name of Nature of Date of Loan Scheme Proposal Date of Date of Reasons No. the unit activity receipt of applied Rejected(R)/ Rejecting Rejection advising for proposal Temp. Closed Authority the party Rejection (Rs. lakh) (TC)
1.2.b) Audit observations, if any individual case wise
Sl. Name of the unit Audit observations Branch office Reply No.
1.3.a) Reporting of relaxations
Details of relaxations in the areas of sanction/Disbursement during audit period
S.No Name of the unit Brief Detail of Approved Whether informed relaxation by to the concerned sanctioning authority
Note: If for relaxations during previous audit periods, informed to sanction authority during current audit, the same may also be indicated above
1.3.b. Individual case wise observations by audit
(where relaxation made are yet to be informed )
Sl. Name of the unit Audit observations Branch office Reply No.
2. Loan Documentation / Security Creation during audit period
Security was created in respect of the following units at BO during the audit period from
________ to ________.
2.1 a) Documentation abstract
Details of cases documented/Final security created during the period of audit
86 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Name of the Date of Assistance Date of Date of Final Security Creation Sanction sanctioned Issue of Documen Date No. unit T & C tation (Rs.in lakh) Dt of RM/ ROC CERSAI EM
2.1.b)Observations –individual case wise
(cases where the time gap is more than 3 months between the date of issue of sanction letter to date of documentation / between date of documentation to final security creation)
Sl. Name of the unit Audit observations Branch office Reply No.
3. Issues relating to disbursement
Disbursements were made in respect of the following units at BO during the audit period from____________ to___________.
3.1.a) Disbursement during audit period
(First and susequent disbursments also)
First Comment
(F)/Subs on
Sl. Date Assista Final Date of equent Disburs availabilit No of nce Securit Disb. (S)disbu ement y of rsement Amount . Sancti sanctio y assets Name of the unit on ned Creatio (Rs.lakh yes/no n Date ( as per (Rs.lak ) physical h) verificatio
n report
of Auditor
Important Note: Physical verification reports by Auditor on assets including cases where advance payment was made as per TIIC norms in the previous months should be enclosed (as per the prescribed format(XIV-a))- enclosed as Appendix I
3.1.b) Audit observations –individual case wise
87 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Name of the unit Audit observations Branch office Reply No.
Note: Auditor may include comments on a)Asset register updation for disbursement,availability of legal clearance certificate, lien creation over the securiy deposit taken as security,master data capture and verification and Communication of repayment schedule letter for first disbursement cases,
In case, no deficiency / shortcoming has been found, following paragraph may be added in the audit report :
“Documents / papers pertaining to disbursement of financial assistance have been perused by the audit team as per the circulars and other guidelines / instructions issued by the Corporation from time to time pertaining to disbursement of financial assistance. No specific deficiency / shortcoming has been observed”.
3.2.a) Undisbursed cases
(All individual cases pending for 3 months and above in both Partly and Fully undrawn)
Sl. Name of the unit Date of Assistance Date of Date of Reasons for pendancy No. Sanctio sanctioned Document previous as reported by B.O Disburseme n (Rs.lakh) ation nt
3.2.b) Observations on cases pending for more than 3 months( Individual case wise)
(cases where the time gap is more than 3 months between date of sanction to date of disbursement / between date of previous disbursement to current date(end of audit period )
Sl. Name of the unit Audit observations Branch office Reply No.
3.3.a) Deficiencies relating to stock statements (WCTL assisted units under all schemes)
88 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. Name of the unit No of units No.
Total No of units in the portfolio
(WCTL assisted units under all schemes)
stock statement received
stock statement to be received (*)
(*) Give list of cases with reasons
In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed”.
3.3.b) Audit observations if any –individual case wise
Sl. Name of the unit Audit observations Branch office Reply No.
4.Violation of exercise of delegated powers- individual case wise
[Pertaining to sanction, disbursement, relaxation in norms made during
the period of audit ]
Sl. Name of the Description of Audit observations Branch office Reply violation No. unit
Note:Auditor may list out incidents, if any, in respect of violation in exercise of delegated powers in sanction, disbursement, relaxation in norms, etc.
In case, no such observation(s) are there, following line may be incorporated in the audit report
“No specific observation (s)”.
5 .Asset Quality /Overdue / NPA Management and Recovery performance: 17.1 5.1. List of NPA cases
As on _________(End of audit period), BO / FO has _______ [No.] of NPA cases amounting to Rs._______ as per asset fortfolio table given at introduction
89 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
5.1 a) Details of top 10 NPA accounts with high pincipal outstanding and quick motality case if any
Sl. Name of the unit category Date of principal Total Pl. overdue as at Remarks No. viz. Sub NPA/ on action standard O/S PRL INT Others taken to / recover doubtful the dues /loss asset 9
1 2 3 4 5 6 7 8
A Top ten cases
Total B Quick mortality
cases
Total
Note: Quick mortality cases: Units that have turned to NPA within 1 year from the date of final disbursement/ during disbursement
5.1 b) Audit observations if any –individual case wise
Sl. Name of the unit Audit observations Branch office Reply No.
5.2 a) Details of top 5 Written off accounts ( with asset back up) Principal outstanding wise.
Sr. Name of the unit Date of principal Total Pl. overdue as at Type of Remarks No. NPA/ O/S PRL INT Others asset on action
available(*) taken to
recover
the dues
1 2 3 4 5 6 7 8 9
Total (*) Land,Land and Building,Machinery and collateral security available cases.
90 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
5.2 b) Observations of Audit on top 5 written off accounts
Sl. Name of the unit Audit observations Branch office Reply No.
1
2
3
4
5
5.3.a) Details of Default Review Committee Meeting(DRM) conducted during audit period and action taken on Minutes of DRM
Rs in Lakhs
Sl.No Date of DRM SMA 2 Sub std Doubtful cases
No of PRL O/S No of PRL O/S No of PRL O/S
accounts accounts accounts
reviwed reviwed reviwed
5.3.b) Audit observations, if any
Sl. Name of the Brief minutes of Particulars of Audit Branch office Reply No. unit DRM further action taken observations
Note:Comments of Auditor may be given on the steps taken by BO/FO for follow-up and certify that ‘we have perused and convinced that necessary action was taken as per the last DRM minutes’
5.4 Follow up and monitoring
5.4 a) Detailes of review of sample NPA cases
(One file under each category to be perused – (a) Restructured with in two years cases,(b)
Above 1 crore cases and (c) Written off cases with asset backed)
Rs. in lakhs
Sl. Name of the unit Date of PRL Over dues Details of
no becomin O/S PRL INT recovery
g NPA action taken
91 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
5.4.b) Observations of Audit on sample NPA cases
Sl. Name of the unit Audit observations Branch office Reply No.
5.5.a) BFS cases pending for more than 180 days as on the date of end of audit period__________
Name of Bill pendancy No of Whether Details of days counter recovery agency Rs in Lakhs pend verific ing action Sl. Name of the unit TANGEDCO Disb Amt Amt ation taken No. /TANTRANSCO date disb O/S of bill done
/TWAD etc by BM
5.5.b) Observations of Audit on BFS cases more than 180 days / 240 days
Sl. Name of the unit Audit observations Branch office Reply No.
5.6.a) Unit inspections
(One unit under each category to be inspected- (a)Performing unit(SMA -2) ,(b) NPA and
(c) Above 1 crore by Prl O/S.)
Rs. In
Lakhs
S.no Name of the unit Availability Insurance Working Overdues
of Valid results If any financed upto available Prl Int assets Upto
1
2
3
92 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Inspection reports enclosed as per format–enclosed as appendix II
5.6.b) Audit Observations ,if any
Sl. Name of the unit Audit observations Branch office Reply No.
5.7. Status of units under possession
(physical / Constructive),(primary / collateral)
5.7 a) List of units under possession as on __________(end of audit period)
Sl.No Name of the Unit Type of Type of SF Date Date of Furthe . of last r property possession C/ poss auction action e taken (Primary/ (Physical/ SA ssion by Branc Collateral) Constructive RF h
) AE
SI
5.7 b) Audit observations of units under possession for more than 1 year
(individual case wise)
Sl. Name of the unit Audit observations Branch office Reply No.
5.8. Status of pending OTS cases
5.8 a) List of OTS approved cases as on __________(end of audit period)
Rs in Lakhs
Sl. Name of Unit Out Date of Date of Branch No. standing approval settlement Remarks as on date for Prl Int approved
93 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
but not settled cases
5.8 b) Audit observations of OTS approved cases
(individual case wise)
Sl. Name of the unit Audit observations Branch office Reply No.
5.8 c) List of OTS requests yet to be approved
( OTS request pending cases as at the end of audit period)
Rs in Lakhs
Sl. Name of the unit Asset Prl Dt of Present status No. request category (*) O/S
(*) as at the end of previous Financial year
5.8 d) Audit observations of OTS to be approved cases, if any
(individual case wise)
Sl. Name of the unit Audit observations Branch office Reply No.
94 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
6.Detection of Fraud cases 6.1.a) Fraud cases pertaining to the previous audits and their current status
Rs in Lakhs
S.No. Name of the Date of detection & Amount Current Status Unit reporting of fraud involved
PRL INT Other O/S O/S dues
In case, no fraud case [s] have been detected, following line may be incorporated in the audit report.
“On the basis of the records / other information available in the BO/FO, no case of fraud was detected in the BO/FO.
6.1.b) Audit observations ,if any –(individual case wise)
Sl. Name of the unit Audit observations Branch office Reply No.
6.2.a) Fraud cases detected during the present audit period and their status
Rs in Lakhs
S.No Name of the Unit Date of Amount involved Action detection & taken by PRL INT OTHER Branch reporting O/S O/S DUES of fraud office
6.2.b) Audit observations ,if any –(individual case wise)
Sl. Name of the unit Audit observations Branch office Reply No.
95 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
7. Revenue leakage
7.1 Quantifiable revenue leakages/excess claims
Position as on __________
[Rs in lakh ]
S.No. Name of the Unit No. of Actual Short / Amount Branc 1 Accou Amt amount due excess Recovere h nts / deman / to be recover ded demanded d office y Reply as per Audit
2 3 4 5 6
Total
* wherever possible, details of calculations done by Auditor may be attached with the audit report for
easy understanding of the BO/FO The amount of short recovery may be indicated in the column by prefixing (-) before the figure.
7.2 Non-quantifiable revenue leakages/excess claims
Sl. Area/Subject Mode of leakage Audit observations Branch office Reply No.
8. Others 8.1a Deficiencies relating to insurance policies
The status of insurance policies are indicated as under Position as on ______(End of audit period)
Sl. Name of the unit No of units No of units No. Primary collateral
1 Total No of units in the portfolio A
2 No of units where assets not available/ B land only case
3 Insurance required for C (A-B)
4 Insurance coverage available(adequately) D
5 Insurance to be effected/enhanced/ E(C-D) amended for correction if any
Note: Few sample cases may be checked for adequecy and validity
96 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
8.1b Audit observations,if any
Audit observations Branch Office reply
In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed”.
8.2.a) Deficiencies relating to site visits
Sl. Name of the unit No of units No. A B 1 Total No of units in the portfolio (*) C (A-B) 2 No of units where assets not available + units under D possession E(C-D) 3 Inspection required for
4 Inspections made during audit period
5 Inspections to be made
(*) including units under possession
8.2b) Observations Branch Office reply Audit observations
In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed”.
8.3a) Acknowledgment of Debt (AOD) The latest status of issue and receipt of AODs in the prescribed format is indicated as under (status given in respect of all the cases where outstanding exists as on the previous month ended of relevant audit period) :
Position as on______(End of audit period)
Sl. No of units Total No. Name of the unit Other than Written
written off off
1 Total No of units where payment not A received for more than 2 years
2 No of units where Suit filed by TIIC B
97 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
for recovery C (A-B) D 3 AOD required for 4 AOD obtained E(C-D) 5 AOD to be obtained.
8.3b) Audit observations,if any Branch Office reply Audit observations
8.4 a) Deficiencies relating to Encumbrance certificate as on_______ (End of audit
period)
Sl. Name of the unit No of units where E.C No. taken for
1 Total No of units in the portfolio All Part of the properties properties A
2 No of units where assets not available B C (A-B) 3 E.C required for D 4 E.C taken upto ________( the end of audit period )from the beginning of Financial year E(C-D)
5 E.C to be taken
Note:Brief on the cases with E.C for part of the properties and where any encumbrance noticed shall be detailed below
8.4b) Audit observations on cases where E.C for part of the proprties / Presence of any Encumbrance
S.no Name of the unit Branch office Audit B O reply
remark observations
In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed”.
8.5 subsidy status
8.5 a) List of cases where SBL is Outstanding
S.No Name of the unit Date of Date of Date of Date of filing Subsidy Subsiby Subsiby Subsidy sanction claim claim application with received H.O from H.O
98 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
1 2
8.5 b) Audit observations for individual cases
(Please indicate whether subsidy sanctioned and claimed for all SBL sanctioned cases)
S.No Name of the unit Audit observations. Branch Office reply
8.5 c) Subsidy register review
The auditors to review and report on the subsidy register maintained at Auditee office as per the following format and delay if any in sanction of subsidy after project implementation and delay if any in forwaing claim to H.O after sanction of subsidy
Rs in lakh
Name Term loan Whether Type of Subsidy Date of Remarks of the project subsidy claim unit Dt of Amt Amt impleme eligible Dt of Amt of forwarded Sancti Sancd Disbd nted Sanction subsidy to HO on yes/No (SCS/G of Sancd S/CLCS subsidy /NEEDS etc.)
8.5 d) Audit observations Branch Office reply Audit observations
8.6(a) SFC OP to be filed Cases
Sl. Name of the unit No of No. units A 1 Total No of NPA cases where assets disposed (at the beginning of current financial year) B
2 Add No of NPA cases where assets disposed C (during current F.Y) D 3 Less No of cases where SFC OP filed for the balance outstanding E (A+B- C-D) 4 Less No of cases settled (during current F.Y)
5 No of cases where SFC OP to be filed for the balance outstanding
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8.6 b) Audit observations for top 3 cases by Principal outstanding wise
(as at the end of audit period)
Rs in lakhs
S.No Name of the unit PRL O/S Audit Branch Office observations. reply
1
2
3
8.6(c) SFC OP Decreed Cases
Sl. Name of the unit No of units No. A
1 Total No of NPA cases where SFC OP Decreed B (at the beginning of current financial year) C 2 Add No of NPA cases where SFC OP Decreed D (during current F.Y) E (A+B- 3 Less No of cases where E.P(Execution petition) filed C-D)
4 Less No of cases settled (during current F.Y)
5 No of cases where where E.P(Execution petition) to be filed
8.6 d) Observations for top 3 cases by Principal outstanding wise
(as at the end of audit period)
Rs in lakhs
S.No Name of the unit PRL O/S Audit Branch Office observations. reply
1
2
3
8.7 Customer Grievance redressel system
The auditrs to review and report on the system of customer grievance redressel system maintained at Auditee office
Audit observations Branch Office reply
100 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office 8.8 Any Other issues / Observations of Audit
9. Conclusion [Signature] Name [Head Audit Team] Date : ________________ Place: ________________
For use of Branch while replying 10. Branch Office’s remarks:-
[Signature of the Branch manager] Name of signatory and Branch
Date : ________________ Place: ________________
101 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Part B
Non operational areas Reporting Format
1. Administration Audit Branch Office observations reply 1.1 Leave calculations
Subject
Observations relating to errors in calculation of all types of leaves, inconsistencies observed in attendance register with that of leave records, wrong / non posting of casual leaves in CL record sheet , deficiencies relating to availing of all types of leaves/absenteenism etc may be indicated under this paragraph.
In case, no observation is there, following line may be incorporated in the audit report “ No specific discrepancy observed".
1.2 Staff Welfare activities
Subject Audit observations Branch Office reply Observations relating to non compliance of guidelines with regard to conduct of staff welfare activities, may be indicated under this paragraph
In case, no observation is there, following line may be incorporated in the audit report “ No specific discrepancy observed".
1.3 Other facilities Audit observations Branch Office a)General Expenses reply Subject
Observations relating to reimbursement made to staff i) News papers, ii) telephone bills /
102 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
rentals and iii) official
entertainment expenditure, etc.
The deficiencies relating to
excess / short payments to staff,
incorrect exercise of DoP to be
brought out under this paragraph.
b) TA/DA / out of pocket expenses
Subject Audit observations Branch Office reply Observations relating to TA/DA, other misc. reimbursements towards conveyance charges to staff may be indicated under this paragraph. The deficiencies relating to excess / short payments to staff and incorrect exercise of DoP to be brought out under this paragraph.
1.4.Other administrative payments to third parties :
a) Payments
Subject Audit observations Branch Office reply
Observations relating to payment towards stationery/printing, car hire,courier, caterer, photo- copier, travel agent, office vehicle expenditure, liveries to workmen employees, postage, calculator, news papers for office, florist etc. may be indicated under this paragraph.
The deficiencies relating to excess/short payments, incorrect exercise of DoP, Income Tax, TDS and GST related matters, to be brought out under this paragraph.
103 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
b)Registers
Subject Audit observations Branch Office reply
Comments on various registers
/statements / folios relating to
General and Personnel
Administration that are
maintained by the auditee office
in soft form in the computer,
RAC/CA may specifically ensure
that access to such files is
restricted only to authorised
officials, the data base is
regularly updated and periodic
back up is taken.
In case, no observation is there, following line may be incorporated in the audit report “ No specific discrepancy observed".
1.5.Premises
1.5 a Maintenance of premises/dead stock :
Observations relating to maintenance of premises / dead stock/ AMCs / dead stock register / inventory of misc. items not classified as dead stock, repairs and maintenance of office, etc., insurance coverage and timely renewal of policies, security arrangements for office, rent / taxes for office premises and timely renewal of lease, etc. may be indicated under this paragraph. The deficiencies relating to excess/short payments, incorrect exercise of DoP and Income Tax related matters to be brought out under this paragraph.
Observations relating to maintenance of various registers / files / system of keeping old records / closed files, destruction of old records as per HO guidelines, safe custody of duplicate keys, fire extinguishers - adequacy and usable condition, submission of periodical returns to HO etc. may be indicated under this paragraph.]
Subject Audit observations Branch Office reply
Observations relating to maintenance of premises / dead stock/ AMCs / dead stock register / inventory of misc. items not classified as dead stock, repairs and maintenance of office, etc., may be indicated under this paragraph.
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Observations relating to security arrangements for office, rent / taxes for office premises and timely renewal of lease, etc may be indicated under this paragraph
The deficiencies relating to excess/short payments, incorrect exercise of DoP, Income Tax, TDS and GST related matters, to be brought out under this paragraph.
Observations relating to maintenance of various registers / files / system of keeping old records / closed files, destruction of old records as per HO guidelines, safe custody of duplicate keys, fire extinguishers - adequacy and usable condition, submission of periodical returns to HO etc. may be indicated under this paragraph.
1.5 b INSURANCE COVERAGE AND TIMELY RENEWAL OF POLICIES :
Observations relating to insurance coverage and timely renewal of policies as per the
policy guidelines, may be indicated under this paragraph.
S.No Description Insurance Valid Audit Branch observations Office reply amt upto
1 Cash in Transit
2 Cash in Chest
3 Fidelity Insurance
4 Furniture & Fittings and office equipments etc.
5 Any other assets
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2. Accounts
2.1a) General accounts-Abstract Number of accounts as on ___________(End of audit period)
S.No Type of loan No of Accounts
1 Term loan
2 Transport loan(TPT)
3 Bill Finance Scheme(BFS)
4 Grow an Enterprenuer
Scheme(GES)
5 Mini loan
Total
2.1b) Audit Observations on Accounts
S.No Subject Audit Branch observations Office reply
1 Observations on demand checking
(Minimum the following demands to be checked
and reported and the list of cases checked
shall be annexed- appendix III
a) For cases foreclosed during audit
period
b) Foreclosure withdrawn cases
c) Reschedule cases
d) First disbursement cases
e) Atleast 1/3 of the other demand raised
cases )(so as to cover all the cases in a
cyclical manner)
2 Observations on demand updation in
system and date of last updation
3 Observations relating to usage of `
current account codes, scrutiny of
final statements, monthly
reconciliation of General Account /
Sundry / Suspense, daily funds
management / bank reconciliation,
maintenance of Cheque Inward
Register, Petty Cash/Imprest Cash
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Register, issue and safe custody of cheques/cheque books, third party payment, etc. may be indicated under this paragraph.
4 Observations on Ledger postings
including manual ledgers
5 Observations relating to follow up of
accounting procedures in accounting
auction sale proceeds / OTS
settlement
6 Observations on G.L Trial Balance
for the previous month
7 Observations on Cash checking (on
any one day)
8 Observations on remittance of
statuatory dues like service tax, TDS
etc by Branches in time.
Note: .In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed".
2.2. Reconciliation of account entries with GL :
Subject Audit observations Branch Office reply Reconciliation of account entries with GL
2.3. Expenditure control Please furnish data showing comparative position of expenditure actually incurred vis-a-vis Budget approved thereof, by the BO in respect of controllable administrative expenditure heads and comment on the status thereof. In case, there has been increase in expenditure, suitable justifications there of as spelt by BO officials be incorporated against such heads of expenditure. If BO has taken steps to control the
107 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
expenditure/ got permission from H.O for the expences may also be suitably indicated in the report.
Headwise Revenue Expenditure Details
Expenditure Budgeted Expen Difference Remarks/Justification Amt. Diture (Budget- as spelt by auditee as on Actual) office if exceeds the
budget
Auditor may note to relate pro-rata budget of the BO with the expenditure incurred under each Head. If BO has taken steps to get permission from H.O for the expenses may also be suitably indicated in the report
2.4. Details of security deposit(S.D) / Follow up deposits(F.D) (matured and pending for more than 2 years.)
S.N Name of In S.D / S.D / S.D / Reaso Audit Branc
o Deposit case F.D F.D F.D n for observatio h
or of recei amou maturit pendin n Office
S.D, pt dt nt y dt g reply
relate
d
Unit’s
name
2.5. Status of computerisation
Observations relating to computerisation whether upto date data has been entered into the system,any other issues relating to computerisation that are highlighted by the Branch office
Audit observations Branch Office remarks
108 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
3. Any Other issues / Observations of Audit
4. Conclusion
[Signature] Name [Head Audit Team]
Date : ________________ Place: ________________
For use of Branch while replying 5. Branch Office’s remarks:-
[Signature of the Branch manager] Name of signatory and Branch
Date : ________________ Place: ________________
109 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Appendix I
To Audit report for the period(from ________ to ________)
Assets Verification for which disbursement made from _______ to _____-
Branch :
Physical verification by:_______________________(name and Designation of auditor )
S. Name Typ Date/ Disburseme Date Amt Cumula Details of Date of Availability Remark L. of the tive assets inspecti of assets s N unit e of Amo nt note of disb disbd on o Yes/no loa unt Disbm d
n sanc t
tione No Date
d
110 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Appendix II
UNIT INSPECTION REPORT 1. Name of the Branch 2. Name of the Audit Official Thiru
inspecting the unit 3. Date of Inspection 4. Name of the Unit 5. Location: Factory:
Office:
6. Type of the Unit (or nature of Business)
7. Name of the Promoter (Proprietor/Partner/Director)
8. Category/Asset Classification of the unit
9. Information on working results ( Rs.in lakhs) As ascertained from the unit
A i) Monthly Turnover
ii) Monthly Expenses
iii) Surplus / Net Profit
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B Previous year working results 31/03/ (Rs. in lakhs) (if available) Working Results Turnover Net Profit Cash Profit
Liabilities:
Capital
Reserves & Surplus
Secured Loans – TIIC - Bank - Others
10. Details of Insurance cover and Insurance valid up to / / for
Its adequacy Rs. lakhs.
11. Details of Loan Account Position: As on / / (Date) (Rs. in Lakhs)
A/C No. Date of Amount Amt. Pl. OVERDUES
Sanction Sanctioned Disbursed O/s Prl. Int. Others
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12. Details of Working Capital Facilities enjoyed
A. Name and Address of the Bank
B. Facility enjoyed C. Whether they are regular in
Meeting the commitment of the Banker D. Asset Category in Bank
13. Is the unit working on Single/Two/Three shifts Rs. lakhs 14. Whether all the assets Funded are available 15. Sales during last 3 months Admn. Nos 16. Power consumed in Last 3 months 17. Number of workers on Rolls
Skilled labours Nos
Unskilled Nos
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18. The Inspection Official shall furnish the details such as:-
. Installed Capacity Actuals
(Rs. in lakhs) (Rs. in lakhs)
a) Present utilization capacity
b) If it is below the capacity assumed at the time of sanction reason be indicated for the same
c) Whether project is implemented as envisaged in the scheme
d) Is the unit attempting any expansion
19. In case of overdues, reason or problem
in servicing the loan :
v) Diversion of funds }
vi) Lack of Orders }
vii) Dispute between promoters }
viii) Any other reasons }
20. Any other remarks by the Audit Officials/
Overall observation in brief :
INSPECTING OFFICIAL 114 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office Appendix III
List of Demand Checked cases
S.No Name of the Unit Remarks
A Foreclosure cases
B Foreclosure cases withdrawal cases
C Reschedule cases
D First Disbursement cases
E General cases (Other than above categories)
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CONCURRENT AUDIT REPORT FORMAT -- FOR HO DEPARTMENTS
Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE OPERATING OFFICE / No. VH / H / M / L (*) COMMENTS / COMPLIANCE
1. HR Department
1.1 Maintenance of files, registers and other
records
1.2 Whether Employment Exchange and
other Returns are sent periodically
1.3 System of keeping old records and their
easy retrieval
1.4 Destruction of old records as per extant
guidelines
1.5 (a) Whether periodical increments are
sanctioned to employees in
Jan/Apr/July/Dec is in order.
(b) Whether fitment for promoted employees / pay fixation is in order.
1.6 Whether leave entries are updated in the
Service Register and checked.
1.7 Whether encashment of Privilege Leave
is calculated correctly and approved as
per DoP.
1.8 Whether purchase of movable /
immovable assets by the employees are
properly recorded in the Service
Register.
1.9 Whether the confidential reports of the
employees are obtained from the
Reporting / Countersigning officials.
1.10 Whether the bills on various expenditure incurred are approved as per DoP.
1.11 Whether LFC bills are processed as per norms and guidelines.
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FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
Sl. OPERATING OFFICE /
No. VH / H / M / L (*) COMMENTS /
COMPLIANCE
1.12 Whether records relating to training are properly maintained.
1.13 Whether GST has been correctly paid on various expenditure at applicable rates.
1.14 Whether application from employees for loans / advances / allowances are processed as per extant guidelines.
1.15 Whether TA Bills / Medical bills of employees are passed as per norms / guidelines.
2. Estate Division
2.1 Whether various expenditure bills are
passed as per DoP.
2.2 Whether attendance register for the
contracted Housekeeping staff is
checked before making payment.
2.3 Whether expenses on common
maintenance is shared with the co-
owners on pro-rata basis.
2.4 Whether Property Tax / Water Tax are
paid on due dates.
2.5 Whether payment of local conveyance to
the employees is as per extant
guidelines.
2.6 Whether Insurance Policies on various
assets are adequate and in force.
2.7 Whether AMC for various assets have
been entered as per norms.
2.8 Whether condemnation / purchase of
office vehicles are done as per extant
guidelines.
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FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
Sl. OPERATING OFFICE /
No. VH / H / M / L (*) COMMENTS /
COMPLIANCE
2.9 Whether uniform to eligible employees
provided as per guidelines.
2.10 Whether maintenance of vehicle log book and expenditure on fuel is checked.
3. Funds & Resources Department
3.1 Whether details for claiming Refinance
from SIDBI has been furnished as per
their requirement?
3.2 Whether Fixed Deposits are mobilized
as per the extant guidelines?
3.3 Whether transfer of funds from & to
branches are closely monitored?
3.4 Whether surplus funds at H.O., if any,
are properly invested to avoid loss of
income ?
3.5 Whether interest rates are fixed based
on the recommendations of Asset
Liability Committee and approval of
Board.
3.6 Whether the observations of AG Audit /
Statutory Audit / SIDBI Inspection are
complied without delay.
3.7 Whether repayment of bank loans / FDs
/ Bonds are done on due dates.
3.8 Whether provisioning of NPAs is made
as per RBI guidelines?
3.9 Whether Bank Account Reconciliation
and HO/BO reconciliation is done
regularly?
3.10 Whether cheque books are kept in safe custody and operated only by the
118 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE VH / H / M / L (*) OPERATING OFFICE / No. COMMENTS / COMPLIANCE
authorized signatories?
3.11 Whether EPF /EGF Funds are invested as per extant guidelines?
3.12 Whether Salary, bonus and other staff related payments are made correctly?
3.13 Whether payments for expenditure bills are made as per the approval given by the delegated authorities ?
3.14 Whether the expenditure budget is monitored vis-avis actual every month ?
3.15 Whether TDS and other returns are filed before the due dates?
4. GST Matters
4.1 Whether GST data of the previous
month from all BO/FO received before the 5th of every succeeding month.
4.2 Whether GRTR-3B Return filed before 20th every month.
4.3 Whether payment of GST amount is made on or before 20th of every
succeeding month.
4.4 Whether the correct GSTIN numbers are
mentioned by BO/FO in their statement.
4.5 Whether GSTR-1 return filed before 10th
of every month.
4.6 Whether GST payment details are given
to F&R Department for the purpose of
HO/BO reconciliation.
4.7 Whether the GST returns are reconciled
with the Annual Accounts and annual
return filed.
4.8 Whether GST audit is completed and
observations, if any, are complied with.
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Sl. FUNCTIONAL AREA Detailed scope AUDIT Risk RESPONSE OBSERVATIONS Level OF THE No. VH / H / OPERATING M / L (*) OFFICE /
COMMENTS / COMPLIANCE
4(a) GST – Returns checking
1 Output GST – Verification and 1.1 Whether B2B and B2C
correction of out put supplies declared outward supplies matched with
in B2B (registered) and GL code, GL head taxable value
B2C(unregistered) in GST return with the books
viz.GSTR-1 & GSTR-3B in comparison
with books
1.2 Whether GSTIN as shown in B2B verified with GST website.
1.3 Whether CGST and SGST is calculated on appropriate taxable value and applicable rate of GST of outward supplies
1.4 Whether there is any difference between the exempt outward supply such as interest income declared in GST returns vs.book
2 Input GST – Checking the eligibility of 2.1 Whether at branch level ITC
ITC availed on input supplies with availed on inward supplies with
original invoices at HO level the copies of the invoices as
given by branches are verified
2.2 Whether tax invoices received have both TIIC’s name & GSTIN and supplier’s GSTIN
3 GSTR 3B /2A Reconciliation
1. Whether reconciliation is being prepared between ITC availed on inward supplies in GSTR 3B and the auto populating statement of GSTR-2A?
2. Whether there is any difference amount in between GSTR-2A and GSTR-3B?
4 Compliance return filing before due dates: Due date of filing:
Whether all the returns viz.GSTR- 1,GSTR-3B & GSTR -7 are filed within due date? If not the quantum of interest and late fee levied on such returns.
120 | P a g e RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE VH / H / M / L (*) OPERATING OFFICE No. / COMMENTS / COMPLIANCE
5. Loan monitoring & Recovery
5.1 Monitoring the pendency of petitions forwarded through Honble CM’s cell, Amma Call Centre & Govt.of India Public Grievance portal and others
5.2 Scrutinizing the OTS proposal received from the branches
5.3 Monitoring of slippage of units
5.4 Analysis of loan portfolio
5.5 Checking the correctness of change in management /Consti-tution, reschedule, TLSP clearances, Upset price fixation, substitution of collateral security
Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE VH / H / M / L (*) OPERATING OFFICE No. / COMMENTS / COMPLIANCE
6. Project department
6.1 Scrutinizing the relaxation notes regarding special / general conditions
6.2 Scrutinising the relaxation of security, change of supplier, direct payments to supplier, CIBIL score relaxation, age relaxation, 10% overdue relaxation etc.
6.3 Whether undrawn balances were reviewed at each month end
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Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE VH / H / M / L (*) OPERATING OFFICE No. / COMMENTS / COMPLIANCE
7. Subsidy Department
7.1 Whether subsidy claims made with the Government is as per Government policy and claims are made in time
7.2 Subsidy reimbursement received from Government is properly appropriated and accounted to the respective units
7.3 Whether subsidies disbursed but recovered from the units on account of ineligibility has been surrendered to the Government
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