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Andhra Pradesh State Skill Development Corporation, Vijayawada, Andhra Pradesh
November, 28th 2019
           Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC




            Request for Proposal (RFP) for
  Selection of Chartered Accountant Firm to
                 Conduct Internal Audit for
                      Andhra Pradesh State
   Skill Development Corporation (APSSDC)




         Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
                         Issued on ­ Date: 26/11/2019
                              (Techno-Commercial Bid)




#3rd floor, G&J Infra (Infosight Building), Survey No. 78/2, Near Pathuru Road
         Junction, Tadepalli, Guntur District, Andhra Pradesh - 522501

                                                                                                         1
                                Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

Table of Contents
I.         Inviting Proposals ......................................................................................................................................... 3
II.        Background .................................................................................................................................................. 3
III. Objective & Scope of Work.......................................................................................................................... 4
      A.      Objectives: ................................................................................................................................................ 4
      B.      Scope of Internal Audit ............................................................................................................................. 4
IV. Eligibility Criteria .......................................................................................................................................... 5
V.         Submission of Bids ....................................................................................................................................... 6
VI. Evaluation of the bids .................................................................................................................................. 7
      A.      Evaluation of Pre-Qualification cum Technical Bids ................................................................................. 7
      B.      Evaluation of Commercial Bids ................................................................................................................. 7
VII. General Instructions..................................................................................................................................... 8
      A.      RFP Document .......................................................................................................................................... 8
      B.      Procedure for Bid Submission................................................................................................................... 8
      C.      Period of Validity of Bids ........................................................................................................................... 8
      D.      Amendment of Bidding Documents ......................................................................................................... 8
      E.      Authorization to Bid .................................................................................................................................. 8
      F.      Timelines/Frequency of audit ................................................................................................................... 9
      G.      Payment Terms and Conditions .............................................................................................................. 10
Annexure-I .......................................................................................................................................................... 12
      Format A: Applicant Details ............................................................................................................................ 12
      Format B: Compliance of Eligibility Criteria .................................................................................................... 13
      Format C: Self-declaration for not being blacklisted ...................................................................................... 15
      Format D: Revenue Details ............................................................................................................................. 16
Annexure-II ......................................................................................................................................................... 17
      Format E: Commercial Proposal Submission Form ......................................................................................... 17
      Format F: Commercial Bid .............................................................................................................................. 18
Annexure-III: Technical Evaluation Marking Criteria ........................................................................................ 19
Annexure-IV: Detailed Scope of Internal Audit................................................................................................. 20




                                                                                                                                                                          2
                    Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

I.   Inviting Proposals
     Andhra Pradesh State Skill Development Corporation (APSSDC) invites proposals through this RFP
     from interested and eligible chartered accountant firms to conduct internal audit for APSSDC. Key
     Information is as under:
        Table 1: Key Information

                         Item                                             Reference

          RFP Issuing Date                     26/11/2019

          Reference Number                     RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
                                               Request for Proposal (RFP) for Selection of Chartered
          Title                                Accountant Firm to Conduct Internal Audit for Andhra
                                               Pradesh State Skill Development Corporation (APSSDC)
          Website                              http://www.apssdc.in

          Proposal Fee                         Rs. 2,000/- Non-Refundable
          Last date for submission of Pre-
                                               29/11/2019 by 3 PM
          Bid queries
          Last date for Bid Submission         11/12/2019 by 3 PM

          Bid Opening Date                     11/12/2019 by 4 PM

          Opening of Commercial Bids           To be intimated later

                                               P. Venkata Krishna Chaitanya
          Contact Person Details               Sr. Manager, Finance,
                                               Email ID: krishnachaitanya@apssdc.in

                                               MD & CEO,
                                               Andhra Pradesh State Skill Development Corporation
          Address for Submission of RFP        (APSSDC), #3rd floor, G&J Infra (Infosight Building), Survey
                                               No. 78/2, Near Pathuru Road Junction, Tadepalli, Guntur
                                               District, Andhra Pradesh - 522501

II. Background
     Andhra Pradesh State Skill Development Corporation (APSSDC) is a unique organization to
     promote Skill Development & Entrepreneurship in the state of Andhra Pradesh. The corporation
     serves as the `Executive Agency' for the newly formed `Department of Skill Development and
     Training'. APSSDC will also serve the important tasks of providing high quality skilled manpower.
     APSSDC is implementing number of skill development activities starting from school dropouts to
     graduates and unemployed youth in the state for creation of better employment and livelihood
     opportunities. APSSDC has set out on a mission to meet skilled man power demands of all Missions and
     shape AP as the skilled-workforce and knowledge hub for the world.




                                                                                                                  3
                  Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

    APSSDC invites proposals through this RFP from Chartered Accountant Firms for appointment of
    Internal Auditor for conducting Internal Audit for Andhra Pradesh State Skill Development
    Corporation.

III. Objective & Scope of Work
    A. Objectives:
      a) The prime objective of the Internal Auditor is to examine and evaluate whether APSSDC's
         framework of risk management, internal control and governance processes are adequate
         and functioning properly.
      b) In addition, the objectives of the Internal Auditor would include advising and
         recommending the management for improvements in internal control and Internal financial
         Controls on Financial Reporting.
      c) Understanding and assessing the risks and evaluate the adequacies of the prevalent internal
         controls.
      d) Identifying areas for systems improvement and strengthening controls.
      e) Ensuring optimum utilization of the resources of the entity, for example human resources,
         physical resources etc.
      f) Ensuring compliance with internal and external guidelines and policies of the entity as well
         as the applicable statutory and regulatory requirements.
      g) Reviewing and ensuring adequacy of information systems security and control.
      h) Reviewing and ensuring adequacy, relevance, reliability and timeliness of management
         information system.

    B. Scope of Internal Audit
      In order to fulfil its vision and objectives, the scope of work of Internal Audit shall include:

      a) Examination and evaluation of adequacy and effectiveness of the internal control and risk
         management system at various operations and activities of the APSSDC.
      b) Review of the accuracy and reliability of APSSDC's accounting records and financial reports
         with a view to ensure robustness of Internal Financial Controls on financial Reporting.
      c) Checking both transactions and functions of specific internal control procedures at various
         departments/offices.
      d) Evaluation of adherence to legal and regulatory requirement covering Acts related to
         Finance, Banking and Taxation laws such as GST, Income Tax Act, etc. and approved policies
         and procedures.
      e) Examine that resources are acquired economically, used efficiently and safeguarded
         adequately.


                                                                                                                4
                    Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

       f) Carrying out special assignment as directed by the management/Audit Committee.
       g) Value addition; improve operational efficiency and internal control systems.
       h) To ensure the compliance of company Risk Management policies by respective
          projects/units/regions/Corporate Office.
       i) Evaluation of Management Information System (MIS) Reports.
            Please refer detailed scope of work as per Annexure-IV

IV. Eligibility Criteria
    Only those Firms who fulfil all the below eligibility criteria are eligible to respond to the RFP.
    Document/s in support of all eligibility criteria are required to be submitted along with the
    Technical Bid. Firms meeting the below mentioned eligibility criteria will be eligible for next round
    of evaluation. Bids received from the firms who do not fulfil any of the following eligibility criteria
    are liable to be rejected.

                                                                                                   Compliance
     S. No.                       Criteria                         Supporting Document/s
                                                                                                    (Yes/No)
               The applicant should be a Chartered
                                                                  Registration certificate
       1.      Accountant Firm and in existence for at
                                                                  of the Firm.
               least 10 years
                The applicant should have audited at
                 least 4 Statutory/Internal Audits in
                 last 5 years as on 31.03.2019 and
                Among 4 Statutory/Internal Audits
                                                                  Client Certificate/
                 one audit shall be for a company with
       2.                                                         Contract with client/
                 an operating revenue more than Rs.
                                                                  Audit report
                 200 cr. in last 05 years as on
                 31.03.2019 and
                at least one internal audit for similar
                 company/corporation like APSSDC
                                                                  Audited Balance Sheets
                                                                  of last three financial
                The Applicant should have a minimum               years duly certified by
                revenue of Rs.1 crore in each financial           Auditor.
       3.
                year during last three financial years            Certificate from the
                ended 31.03.2019                                  statutory auditor as per
                                                                  the `Format D under
                                                                  Annexure-I'
                Applicant should have a permanent                 Self-declaration along
       4.       office in India and branch office in              with relevant
                Andhra Pradesh.                                   supporting documents.
                Applicant should have minimum of 10               Self-declaration along
       5.       professionally qualified CA/CMA as                with relevant
                partners/employees as on 31.03.2019               supporting documents.


                                                                                                                  5
                 Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

                                                                                                Compliance
    S. No.                     Criteria                         Supporting Document/s
                                                                                                 (Yes/No)
             The Applicant should not have been
             black-listed/recommended to be black
             listed by central/state
             governments/PSUs or any other
                                                               A Self Certified letter
             investigation firms/statutory authorities
                                                               by authorized signatory
      6.     in India and is in compliance of all Laws,
                                                               as per From C under
             Rules, Regulations, Bye-Laws,
                                                               Annexure-I
             Guidelines, and Notifications etc.
             Applicant is required to submit a self-
             declaration in this regard in the
             technical bid.
             The firm should submit Peer review
      7.                                                       Peer Review Certificate
             Certificate


    Note: It is mandatory for the Applicants to submit all the supporting documents against eligibility
    criteria mentioned above along with `Compliance of Eligibility Criteria under Annexure-I'.

V. Submission of Bids
    a) Interested firms fulfilling eligibility conditions as mentioned above can submit their detailed
       proposal as per annexures for appointment of internal auditor for APSSDC, to the MD & CEO,
       Andhra Pradesh State Skill Development Corporation (APSSDC), #3rd floor, G&J Infra
       (Infosight Building), Survey No. 78/2, Near Pathuru Road Junction, Tadepalli, Guntur District,
       Andhra Pradesh - 522501 on or before last date of submission.
       The Bid prepared by the firms should comprise the following components:
    b) Technical Bid: A separate sealed cover comprising of prescribed `Formats under Annexures-
       I with superscriptions as "Technical Bid ­ Request for Proposal (RFP) for Selection of Chartered
       Accountant Firm to Conduct Internal Audit for Andhra Pradesh State Skill Development
       Corporation (APSSDC)".
    c) Commercial Bid: A separate sealed cover comprising of prescribed `Formats under
       Annexures-II with superscriptions as "Commercial Bid ­ Request for Proposal (RFP) for
       Selection of Chartered Accountant Firm to Conduct Internal Audit for Andhra Pradesh State
       Skill Development Corporation (APSSDC)".
    d) Proposal Fee: Firms are required to deposit a non-refundable processing fee of 2,000/- (Rupees Two
       Thousand only) along with bid documents to APSSDC. The Processing Fee must be in the form of a
       crossed demand draft Payable to `Andhra Pradesh State Skill Development Corporation' payable at
       Vijayawada, drawn on any scheduled commercial bank and must accompany with Covering Letter in
       cover of the Proposal Document of technical bid.

    e) Firms to keep both `Technical Bid' and `Commercial Bid' in a single separate sealed cover with
       superscriptions as


                                                                                                               6
                  Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

            ·   "Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct
                Internal Audit for Andhra Pradesh State Skill Development Corporation (APSSDC)"
            ·   Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
            ·   Confidential ­ Please do not open
    f) Any bid document not conforming to any one of the above terms will be rejected.
    g) Bid currency: All bid prices shall be quoted in Indian rupees.

VI. Evaluation of the bids
    A. Evaluation of Pre-Qualification cum Technical Bids
      I. A Committee constituted by the APSSDC will carry out evaluation of the bids received by it
         in order to determine whether they are substantially responsive to the requirements set
         forth in the proposal. In order to reach such a determination, committee will examine the
         information supplied by the firms, and shall evaluate the same as per the evaluation criteria
         specified in this proposal.

     II. The evaluation process shall involve:

         · The Committee shall first evaluate the documents and information supplied by the firms
           in the proposal in order to examine the compliance status declared by the firms as per
           `Formats under Annexures-I.

         · The Committee members will assess the documents of the firms based on required
           parameters related to their capacity to deliver the services, and accordingly Technical Score
           will be given to each applicant.

         · The applicants who achieves cut-off technical score of 70% will be shortlisted for next round
           of evaluation i.e. Commercial Bid Evaluation.

         · Technical Score criteria is given at Annexure-III Technical Evaluation Marking Criteria

    B. Evaluation of Commercial Bids
      I. It is mandatory for the firms to submit financial bid duly filled as per formats under
        Annexures-II'.

     II. The commercial bids of only shortlisted firms by the committee post Technical Evaluation
        round will be opened and will be evaluated as L1 (Lowest cost) method.

     III. The Total Bid Price as provided in financial bid format under Annexure-II shall be used by the
        Committee for the purpose of financial evaluation of bids.






     IV. In case L1 backs out - L1 shall be blacklisted from participating in any future bidding of APSSDC
        projects and are liable for legal action by APSSDC. In such case, APSSDC may invite next L2
        firm for services as mentioned in `Scope of work' at the price quoted by L1.

     V. The decision of the committee pertaining to the evaluation of proposals shall be final. No
        correspondence will be entertained in this regard.


                                                                                                                7
                  Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

     VI. The Committee reserves the right to reject any or all proposals on the basis of any deviations.
        Selection of agency will be done solely at the discretion of the Committee/APSSDC.

    VII. APSSDC reserves the right to accept or reject any proposal, and to annul the evaluation
        process and reject all proposals at any time prior or post award of contract, without thereby
        incurring any liability to the affected proposal or agencies or any.

    VIII. When deemed necessary, during the bid evaluation process, Committee may seek any
        clarifications from the agencies.

     IX. Conditional Bids will be rejected.

VII. General Instructions
    A. RFP Document
      The applicant is requested to download the RFP document from www.apssdc.in and read all
      the terms and conditions mentioned in the RFP and seek clarification if any from the RFP
      Inviting Authority.

    B. Procedure for Bid Submission
      The Applicants shall prepare and submit their Pre-Qualification Bid, Technical bid and
      Commercial bid as mentioned in `Submission of Bids' section and as per the formats prescribed
      in this RFP. The Applicant should sign on all the statements, supporting documents, certificates
      submitted, owning responsibility for their correctness/authenticity.
      Incomplete proposals, and the proposals received after the specified time and date, and the
      proposals not fulfilling the specified criteria/requirement shall not be considered.

    C. Period of Validity of Bids
      Bids should remain valid for the period of at least 180 days from the last date for submission of
      bid prescribed by the APSSDC. A bid valid for a shorter period shall be rejected by the APSSDC
      as nonresponsive. In case the last date of submission of bids is extended, the applicant shall
      ensure that validity of bid is reckoned from modified date for submission. Further extension of
      the validity of the bid will be decided by the APSSDC in case of need.

    D. Amendment of Bidding Documents
      Prior to the last date for bidsubmission, the APSSDC may, for any reason, whether at its own
      initiative or in response to clarification(s) sought from the prospective firms, modify the RFP
      contents/covenants by amendment. Clarification/amendment, if any, will be notified through
      APSSDC's website i.e., https://www.apssdc.in. No individual communication would be made in
      this respect. APSSDC shall not be responsible for any claims/issues arising out of this.

    E. Authorization to Bid
      The proposal/bid being submitted would be binding on the applicant. As such, it is necessary
      that authorized personnel of the firm sign the bid documents. The designated personnel should
      be authorized by a senior official of the organization having authority.



                                                                                                                8
            Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

F. Timelines/Frequency of audit
   a) Frequency of the internal audit shall be quarterly basis.

                                                    Commencement                 Report to be
         Quarter             Period
                                                        Date                      submitted
            I         April ­ June               July                        September
            II        July ­ September           October                     November
            III       October ­ December         January                     February
            IV        January - March            May                         June

   b) Reporting Format and calendar for submission of Internal Audit Reports
      Internal Audit Reports should be prepared in the following manners, namely:
          Part-I: Introduction including details of nature of work
          Part-II: Executive Summary of significant observations with the following
          summarized highlights:
                              Addresses a fundamental control weakness or significant
           Critical           operational issue that should be resolved by management
                              as a priority.
                              Addresses a control weakness or operational issue that
           Important          should be resolved by management within a reasonable
                              period of time.
                              Addresses a potential improvement opportunity in
           Good Practice
                              operational efficiency/effectiveness.

          Part-III: Persisting Irregularities and Action taken by the unit on previous Internal
          Audit Report
          Part-IV: Important items which, in the opinion of the Auditor, should be brought to
          the notice of the Audit Committee.
          Part-V: Irregularities noticed and rectified on spot and those not rectified with reasons
          Part-VI: Suggestions for systems improvement.
          Part-VII: Comments on the Internal control framework in APSSDC, its robustness and
          weaknesses.
          Part-VIII: Comments on the unusual entries/transactions, if any
          o The Auditor must discuss the draft report with the unit head before drawing up the
            final report and make a specific mention of this in his report.
          o Documentation: The reference of documents checked must be part of the audit
            report



                                                                                                          9
             Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

           o The Auditor must deliver one copy of the report to the unit head for necessary
             compliance and send a copy of the full Report (in soft and hard both) to MD & CEO.
           o The auditors to submit certificate duly signed jointly with unit head to the effect
             that scope of audit as defined has been duly adhered to and the issues raised, or
             observations made by the auditors have been discussed.
           o No para of the Internal Audit Report can be taken as closed unless satisfactorily
             resolved. Outstanding paras will be carried forward to the next report and need to
             be properly addressed in the Internal Auditor's Report.
           o Internal Auditors are encouraged to suggest solutions to rectify the errors or
             deficiencies and not merely confine to making observations. Internal Auditors
             should also give suggestions for system improvement and ensure compliance of
             the audit observations at the Project site itself in their presence.

G. Payment Terms and Conditions
  The payment will be released `Quarterly' upon submission of Invoice and Internal Audit Report.




                                                                                                          10
Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC




            Annexures




                                                                                             11
                 Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

                                              Annexure-I
Format A: Applicant Details

                                                                                              Documents
  S. No.                 Description                                Details
                                                                                           submitted (Yes/No)
    1.     Name of the Applicant Firm
           Legal Status of the Firm
    2.
           (Proprietorship/ Partnership/LLP)
    3.     Registration Date of the Firm
    4.     Registration Number of the Firm
           Registered/Corporate office address of
    5.
           the Firm
    6.     Branch Office Address of the Firm
    7.     Website of the Firm
           PAN Number of Applicant (Self-
    8.
           attested copy of PAN to be enclosed)
           GST Number of the Firm (Self-attested
    9.     copy of GST Registration Certificate to
           be enclosed)
           Telephone No. (with STD Code) of the
   10.
           Firm
   11.     Peer Review Certificate of the Firm
                                                         DD No. and Date:
   12.     Processing Fee details                        Name of the Bank: Valid
                                                         upto:
                                                         Name:
                                                         Designation:
           Name & contact details of the
   13.                                                   Mobile No.:
           authorized signatory
                                                         Email ID:
                                                         Address:
                                                         Name:
           Name & Designation of the contact             Designation:
   14.     person to whom all references shall be        Mobile No.:
           made regarding this RFP                       Email ID:
                                                         Address:
   15.     Financial Details (as per Balance Sheets) (Amount in Lakhs)
   FY                FY 2016-17                          FY 2017-18                         FY 2018-19




                                                                                                              12
                 Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

Format B: Compliance of Eligibility Criteria

                                                                                                    Compliance
 S. No.                    Criteria                            Supporting Document/s
                                                                                                     (Yes/No)
          The applicant should be a Chartered
                                                           Registration certificate of the
   1.     Accountant Firm and in existence for
                                                           Firm.
          at least 10 years
           The applicant should have audited at
            least 4 Statutory/Internal Audits in
            last 5 years as on 31.03.2019
                              and
           Among 4 Statutory/Internal Audits
            one audit shall be for a company               Client Certificate/ Contract
   2.
            with an operating revenue more                 with client/ Audit report
            than Rs. 200 cr. in last 05 years as on
            31.03.2019
                              and
           at least one internal audit for similar
            company/corporation like APSSDC
                                                           Audited Balance Sheets of last
          The Applicant should have a minimum              three financial years duly
          revenue of Rs.1 crore in each financial          certified by Auditor.
   3.
          year during last three financial years           Certificate from the statutory
          ended 31.03.2019                                 auditor as per the `Format D
                                                           under Annexure-I'
          Applicant should have a permanent                Self-declaration along with
   4.     office in India and branch office in             relevant supporting
          Andhra Pradesh.                                  documents.
          Applicant should have minimum of 10              Self-declaration along with
   5.     professionally qualified CA/CMA as               relevant supporting
          partners/employees as on 31.03.2019              documents.
          The Applicant should not have been
          black-listed/recommended to be black
          listed by central/state
          governments/PSUs or any other
          investigation firms/statutory                    A Self Certified letter by
   6.     authorities in India and is in                   authorized signatory as per
          compliance of all Laws, Rules,                   Format C under Annexure-I
          Regulations, Bye-Laws, Guidelines, and
          Notifications etc. Applicant is required
          to submit a self-declaration in this
          regard in the technical bid.
          The firm should submit Peer review
   7.                                                      Peer Review Certificate
          Certificate




                                                                                                              13
             Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC



I. Documentary Proof Required:
  ·    Registration Certificate
  ·    GST Registration Certificate
  ·    PAN Number
  ·    Financial reports for the past three (3) consecutive FYs certified by Auditor
  ·    Peer review certificate

II. Statement of experience and competence:

                                                Scope of Services
       Name of project Name of the            Provided (a separate         Value of the      Brief Project
 S. No. (Completed)      Client                document may be               Project         description
                                                   provided)
  1.
  2.
  3.
  4.
  5.


 Note: Please submit the relevant documents as proof in view of projects being highlighted in
 above table and eligibility Criteria.




                                                                                                          14
                       Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

Format C: Self-declaration for not being blacklisted

(The Declaration Letter is to be submitted by Company Secretary/Authorized Representative and Signatory
on Company's Letterhead with his/her dated Sign and Seal)

To,

The MD & CEO,
Andhra Pradesh State Skill Development Corporation,
#3rd floor, G&J Infra (Infosight Building),
Survey No. 78/2, Near Pathuru Road Junction,
Tadepalli, Guntur District, Andhra Pradesh ­ 522501.

1. In reference to the RFP Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002 dated 26/11/2019 ...... as a
   representative(s) of ................................. (name of the applicant's firm), I/We hereby declare that our firm
   .................................................... is having unblemished past record and was not declared blacklisted or alleged
   or ineligible to participate for bidding till the time of submission of response to this RFP by any State/Central
   Govt. or PSU or any investigating firm/statutory authority due to unsatisfactory performance, breach of
   general or specific instructions, corrupt/fraudulent or any other unethical business practices.
2. I/We hereby declare that our firm is in compliance with all Laws, Rules, Regulations, Bye-Laws, Guidelines,
   Notifications etc. issued by Institute of Chartered Accountants of India (ICAI) from time to time.
3. The information submitted in our Proposal is complete, is strictly as per the requirements as stipulated in
   the RFP and is correct to the best of our knowledge and understanding. We would be solely responsible for
   any errors or omissions in our Proposal. We acknowledge that APSSDC will be relying on the information
   provided in the Proposal and the documents accompanying such Proposal for empanelment of the applicant
   for the aforesaid program, and we certify that all information provided in the application is true and correct;
   nothing has been omitted which renders such information misleading; and all documents accompanying
   such Proposal are true copies of their respective originals.
4. We acknowledge the right of APSSDC to reject our Proposal without assigning any reason or otherwise and
   hereby waive, to the fullest extent permitted by applicable law, our right to challenge the same on any
   account whatsoever.
5. We satisfy the legal requirements and meet all the eligibility criteria as laid down in the RFP.
6. This Proposal is unconditional, and we hereby undertake to abide by the terms and conditions of the RFP.
7. We have not directly or indirectly or through an agent engaged or indulged in any corrupt practice,
   fraudulent practice, coercive practice, undesirable practice or restrictive practice.


 For and on behalf of:

 Signature:
 Name:
 Designation:
 (Company
 Seal)
 (Authorized Representative and
 Signatory)




                                                                                                                                 15
                    Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

Format D: Revenue Details

           (Declaration by Chartered Accountant on Letterhead with his/her dated Sign and Seal)







                                   To whomsoever it may concern


On the basis of audited financial statements, we hereby certify that (Name of Agency) having
registered office at (Office address) has an annual revenue of .................................... in each financial
year during last three (3) financial years (FY 2016-17, 2017-18, 2018-19). The details of annual
revenue are mentioned below:


                                                                Annual Revenue of the firm (in
        S. No.                 Financial Year
                                                                            INR)
           1.        2016-2017

           2.        2017-2018

           3.        2018-2019




 (Chartered Accountant):
 Signature
 Name
 Registration
 No Contact
 No.
 Seal
 Date




                                                                                                                   16
                   Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC


                                                Annexure-II
Format E: Commercial Proposal Submission Form

Location:
Date:


To,

The MD & CEO,
Andhra Pradesh State Skill Development
Corporation, #3rd floor, G&J Infra (Infosight Building),
Survey No. 78/2, Near Pathuru Road Junction,
Tadepalli, Guntur District, Andhra Pradesh ­ 522501.



Dear Sir,
We, the undersigned, offer to provide the for [Insert title of Assignment] in accordance with your RFP
Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002 dated 26/11/2019, and our Technical Proposal.
Our attached Financial Proposal including applicable taxes is for the sum of [Insert amount(s) in words
and figures].
We hereby confirm that the financial proposal is unconditional, and we acknowledge that any
condition attached to financial proposal shall result in reject of our financial proposal.
Our Financial Proposal shall be binding upon us subject to the modifications resulting from contract
negotiations, up to expiration of the validity period of the Proposal.
We understand you are not bound to accept any proposal you receive.




Yours sincerely,
{Signature}
{Stamp}




                                                                                                                17
                Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC


Format F: Commercial Bid

          Description of Service      Total Price per         All applicable taxes &         Total price inclusive
 S. No.     (As per the Scope         Annum without         other duties etc. on total       of taxes and duties
          mentioned in this RFP)       taxes (in INR)       price per Annum (in INR)         per Annum (in INR)

   A                B                         C                           D                          E=C+D

   1.




                                                                                                             18
                 Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

                Annexure-III: Technical Evaluation Marking Criteria

                                                                                                Max.
S. No.                Particulars                         Minimum Requirement
                                                                                                Marks
                                                     10 years old (cut-off Date -
 1.      Year of Establishment                                                                10
                                                     31/03/2019)

         Revenue from professional services
 2.                                                  Rs. 1 Cr                                 15
         for last 3 years

         No. of professionally qualified
 3.                                                  10
         CA/CMA as partners/employee                                                          30
         Statutory Audit/ Internal Audit -No.
         of companies (with operating                04 (at least 01 should be like
 4.                                                                                           45
         revenue more than Rs. 200 cr.)              APSSDC/Govt Corporation)
         audited in last 05 years




                                                                                                              19
                 Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

                    Annexure-IV: Detailed Scope of Internal Audit
Major areas to be covered during the course of Internal Audit: The Internal Audit shall be carried
out in accordance with the Auditing Standards and Accounting Standards prescribed by the Institute
of Chartered Accountants of India and will include such tests and controls, as the Auditor considers
necessary under the circumstances. The scope of Internal Audit encompasses the examination and
evaluation of the adequacy and effectiveness of the organization's system of internal control with
special emphasis on the following:
 1. Training Income
      To Review the training programs offered/conducted by the Corporation.
      To examine the enrollment process at different training centers.
      To verify the attendance monitoring mechanism by centre heads at respective locations.
      To reconcile the fee collected at the training centres with deposits into the bank accounts.
      To verify whether the Income is recorded in the books of account on a timely basis.
      To review grants received in monetary and non-monetary form and verify the utilization of
      such grants and to verify whether the same are recorded correctly in the books of account.
 2. Government Grants ­ Accounting & Utilization
      To review the Budget Release Orders/Government Grants received.
      To check the accounting of the grants released through the designated PD Account.
      To review the accounting of grants and to verify whether the same is in compliance with
      Accounting Standards as prescribed in the Companies Act, 2013.
      To review utilization of grants based on the directions enumerated in the Government
      Orders, Reconciliation of grants with actual utilization and to report on the balance of
      unspent grant.
 3. Establishment including contractual employments
      To review the HR Policy document and offer suggestions, if any.
      To review recruitment process starting from manpower budgeting to issuance of Offer Letter.
      To evaluate selection process based on the HR manual of the Company.
      To review the onboarding process including review of documents/certificates collected from
      the selected candidate as per Company's checklist.
      To check the inclusion of new joinees in payroll system as per date of joining.
      To verify whether intimation to insurance company was sent for inclusion of the new joinees
      in the mediclaim insurance policy.
      Checking the correctness of monthly payroll including statutory deductions.
      Review of separations from the Company, to verify compliance with notice period coverage
      or in case of waiver of notice period to verify appropriate approvals.


                                                                                                              20
               Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

    Review of full and final settlement for employees who are leaving the service.
    Review of advances to employees and recovery of the same. Reporting old advances to the
    Management for necessary action.
    Verification of leave balances and recovery for excess leave taken. Verification of leave
    encashment based on the Company's' policies.
4. Administrative Expenses
    Review of contracts and agreements with vendors and service providers and verification of
    approvals of competent authority.
    Review of all expenses viz., rent, professional fees, training           consultants' fees for correct
    accounting and payments.
    Review of employee travel costs for the correctness of the same and whether they are as per
    the Company's' HR policies and report on the long outstanding cases, if any.
5. Capital Assets ­ Acquisition/disposals and recording
    Verification of budgetary approvals for procurement of Fixed Assets.
    Verification of procurement procedures of fixed assets from vendors.
    Verification of recording of asset in the Company's' books.
    Verification of classification of the asset as per Schedule II to the Companies Act, 2013 and to
    verify whether correct useful life of the asset was taken for providing depreciation in the
    books of account.
    Verification of Fixed Assets Register.
    Verification of physical verification of fixed assets undertaken by the Company at periodical
    intervals.
    Verification of vendor payments.
    Verification adjustments of advances and recovery of penalties from vendors where
    applicable
    Verification whether taxes are correctly deducted from vendors payments as applicable.
6. Procurement of Goods/Services
    To review the procurement Policy containing all metrics of vendor evaluation, selection and
    rejection and to report deviations wherever observed in complying with the policy.
    Review of budgetary approvals for major procurement of goods or services.
    Review the approved vendor master list as per Procurement Manual and evaluation of
    process followed for shortlisting the vendor and issuance of Purchase/Work Order.
    Review the approvals for deviations in procurement from outside approved vendors.
    Review of vendor accounts and identification of old pending item for unduly long period of
    time.
    Verification of write-off and write-backs and purchase returns.


                                                                                                            21
               Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

    Review of credit notes in vendor accounts.
    Review of statutory compliances by service vendors with PF, ESI etc, to verify compliance by
    the Corporation as Principal Employer under respective statutes.
7. Treasury Operations
    To verify the Board Approvals to operate Bank Accounts.
    Vouching of cash and bank vouchers
    Scrutiny of cash and bank accounts for exceptional transactions and balances
    Review of Bank Reconciliation statement, identifying stale cheques and verify the accounting
    treatment.
    Verify custodianship of unused cheques.
    Verification of bank payments to ensure compliance with cheque authorization matrix.
    Verification of all supporting documents including approvals for bank payments.
    To review the confirmation of balances from banks at the end of the financial year.
    Verify the process for identification of banks to make Fixed Deposits.
    Physical Verification of Fixed Deposit Receipts.
    Comparison of interest income with that of Form 26AS.
    To check whether timely revalidation/encashment of Fixed Deposits before expiry dates.
8. Statutory Compliances
    To verify whether the company is complying with all the applicable TDS provisions of IT Act,
    1961.
    To verify whether the company is complying with other statutes such as EPF, ESI, GST,
    Profession Tax etc
    Verify the submission of returns as per the timelines prescribed by various statutes under
    direct and indirect taxes.
    To review the compliance with the provisions of Companies Act, 2013 including compliance
    with Indian Accounting Standards (IND AS) wherever applicable and guide corporation for
    onward compliance.
9. Propriety Audit
    To verify and review whether the activities/functions of the company are in the best interest
    of the company and not prejudicial to the interest of the company/Government.
    To verify and review whether the company is following the rules and regulations laid down
    by the state Government/Board of Directors/Shareholders.
    To verify whether the company's policies and procedures in respect of staffing,
    purchase/procure, training programmes, outsourcing etc are in line with the respective rules.
    To verify whether the training centres setup by the company are within the framework and
    mission outlined by the Government.

                                                                                                            22
               Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC

    To verify whether the grants received from Government/others are being spent on the
    purposes for which they are granted.
    To verify whether the company is complying with all the applicable laws of the country and
    working within the applicable regulatory framework.
    Verification of the following main aspects to find out whether:
      i. The funds are received from proper and authorized channels and such funds are spent for
         authorized purposes.
     ii. Proper recording has been done of all transactions in appropriate books of account.
     iii. The assets have been put to proper use and properly safe guarded.
     iv. The organization is working as per its main objects and expected lines.
 Note:
 o The details above are not to restrict the Scope of Internal Auditors but are only to meet with
   the minimum specific requirements for the internal control of company.
 o Internal Auditors will be encouraged to suggest solutions to rectify the errors or deficiencies
   and not merely confine to making observations. Internal Auditors should also give suggestions
   for system improvement and ensure compliance of the audit observations at the Project site
   itself in their presence.
10. Knowledge resource/documents to be referred
   The indicative list of the knowledge resource/documents, which are to be referred before
   embarking the assignment includes:
    Standards on Internal Audit issued by ICAI.
    Relevant Standards issued by ICAI
    Generic Guidelines on Internal Audit issued by ICAI including Guide on Risk-Based Internal
    Audit, Guide to Internal Financial Controls, Enhancing Governance through Internal Audit etc.
    Contract documents duly signed by APSSDC and training partners/venders.
    Policies on procurement, leave & travel etc.




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