Small Industries Development
Bank of India
Request for Proposal (RfP)
For
Concurrent Audit of Operations of
Institutional Finance Vertical (IFV), SIDBI
Small Industries Development Bank of India
Audit Vertical
4thFlOOR, SIDBITOWER,
15, ASHOK MARG,
LUCKNOW - 226001
Website : www.sidbi.in
Tender No. 314/2019/1413/HO1/IAD
THE INFORMATION PROVIDED BY THE BIDDERS IN RESPONSE TO THIS TENDER DOCUMENT
WILL BECOME THE PROPERTY OF SIDBI AND WILL NOT BE RETURNED. SIDBI RESERVES THE
RIGHT TO AMEND, RESCIND OR REISSUE THIS TENDER DOCUMENT AND ALL AMENDMENTS WILL
BE ADVISED TO THE BIDDERS AND SUCH AMENDMENTS WILL BE BINDING ON THEM.
(THIS DOCUMENT SHOULD NOT BE REUSED OR COPIED OR USED EITHER PARTIALLY OR FULLY IN ANY FORM)
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RfP CA for Operations at IFV, SIDBI, Mumbai
Critical Information Summary
1) The RfP is posted on the SIDBI website www.sidbi.in. SIDBI 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 shall be notified on SIDBI's website www.sidbi.in and these
will be binding on the bidders.
2) 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.
3) Any clarifications from bidder or any change in requirement will be posted on
SIDBI website. Hence, before submitting bids, bidder must ensure that such
clarifications / changes have been considered by them. SIDBI will not have
any responsibility in case some omission is done by any bidder.
4) In case of any clarification required by SIDBI to assist in the examination,
evaluation and comparison of bids, SIDBI 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.
5) Please note that all the information required as per the bidding document needs to
be provided. Incomplete information in these areas may lead to non-selection.
6) 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, if bidder happens to be the successful
bidder.
7) SIDBI has the right to reject any or all bids received without assigning any reason
whatsoever.
NOTE:
SIDBI SHALL NOT BE RESPONSIBLE FOR NON-RECEIPT / NON-
DELIVERY OF THE BID DOCUMENTS DUE TO ANY REASON,
WHATSOEVER.
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RfP CA for Operations at IFV, SIDBI, Mumbai
Schedule of events:
Sr.
Bid Reference - 314/2019/1413/HO1/IAD
No.
Concurrent Audit of Operations of
1 Purpose Institutional Finance Vertical (IFV),
Mumbai.
One (1) Envelope.
No. of Envelopes (Non window,
2 1 set of Hard copy should be submitted in
sealed) to be submitted
sealed single.
3 Last date of submission of Bids December 24, 2018 at 2:00 p.m (Monday)
Venue, Date and Time of opening December 24, 2018 by 3:00 p.m at the
4
of Bids. address given at Sr. No. 8.
5 Date of Pre-bid meeting December 10, 2018 by 4:00 p.m
Response to clarification/pre-bid
6 December 17, 2018 by 4:00 p.m
meeting
6 months from the last date of submission of
7 Bid Validity
Bids.
The General Manager
Audit & Fraud Management Vertical
SIDBI, 4th Floor
SIDBI TOWER,
8 Address for submission of Bids
15, ASHOK MARG,
LUCKNOW - 226001
Ph : 0522-2288546-50
E-mail: auditvertical_ho@sidbi.in
Contact Persons:
Name & Designation Phone e-mail
9
Susheel Kumar Agrawal [M] 0522-4259821 auditvertical_ho@sidbi.in
Arup Kumar Vishwakarma [M] 0522-4259788 auditvertical_ho@sidbi.in
If a holiday is declared on the dates mentioned above, the proposals shall be
received / opened on the next working day at the same time specified above and at
the same venue unless communicated otherwise.
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RfP CA for Operations at IFV, SIDBI, Mumbai
Introduction and Disclaimers
1.1 Purpose of RfP
The purpose of RfP is to shortlist experienced professional firm/ Limited Liability
Partnership (LLP) of Chartered Accountants, for undertaking Concurrent Audit of
Operations of Institutional Finance Vertical (IFV) of SIDBI at Mumbai.
Table I
O/S as on
Sl.
Name of the HO Vertical Head Office March 31, 2018 Appendix on
No. Scope of work
(` in Crore)
Institutional Finance
1 Vertical (IFV) (NBFC & SFB) Mumbai 15, 246 Appendix-I
1.2 Purpose of RfP
The Request for Proposal document contains statement 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 SIDBI.
Neither SIDBI nor any of its employees, agents, contractors or advisors 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 SIDBI nor any
of its employees, agents, contractors, or advisors 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
Subject to any law to the contrary, and to the maximum extent permitted by law,
SIDBI and its officers, employees, contractors, agents and advisors disclaim all
liability from any loss or damage (whether foreseeable or not) suffered by any person
acting on or refraining from acting because of any information including forecasts,
statements, estimates or projections contained in this RfP document or conduct
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 SIDBI
or any of its officers, employees, contractors, agents, 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 SIDBI, will be borne entirely and exclusively by the
Applicant.
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RfP CA for Operations at IFV, SIDBI, Mumbai
1.5 No Legal Relationship
No binding legal relationship will exist between any of the Applicants and SIDBI until
execution of a contractual agreement.
1.6 Applicant 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 SIDBI may in its absolute discretion
apply selection criteria specified in the document for evaluation of proposals for
shortlisting/ 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 Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all the
information/ data / operations, etc. of SIDBI.
1.9 Errors and Omissions
Each applicant should notify SIDBI of any error, omission, or discrepancy found in
this RfP document.
1.10 Acceptance of Terms
An applicant will, by responding to SIDBI for RfP, be deemed to have accepted the
terms of this Introduction and Disclaimer.
2. Lodgment of RfP
2.1 RfP submission:
RfP document submission is required to be done by December 24, 2018
(Monday) (2.00 PM) as under :-
Hard copy should be submitted at the following address in sealed single
envelope superscribed at the top of the envelope "Request for Proposal
(RfP) for Concurrent Audit of Operations of Institutional Finance Vertical
(IFV), Mumbai, SIDBI".
The General Manager
Audit & Fraud Management Vertical
Small Industries Development Bank of India (SIDBI)
SIDBI Tower, 15, Ashok Marg,
Lucknow 226001 (U. P.)
Telephones: (0522) 2288546-50
Email: auditvertical_ho@sidbi.in
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RfP CA for Operations at IFV, SIDBI, Mumbai
RfP must be submitted on or before the aforementioned closing date and time.
Fax / e-mail copies of any submission are not acceptable and will be
rejected by the Bank.
Copy of bids and attachments must be provided in a sealed envelope.
The person(s) signing the bids shall initial all pages of the bid. The bid shall
contain no erasures or overwriting except as necessary to correct errors made by
the applicant, in which case corrections shall be initialed by the person(s) signing
the bid.
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 SIDBI. Applicants shall be deemed to license, and grant all rights to SIDBI 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.
2.2 RfP Validity Period
The proposal must remain valid and open for evaluation according to their terms
for a period of at least six (6) months from the time the RfP closes on the deadline
for lodgment of RfP.
2.3 Cost of RfP Document
No cost has been prescribed for the RfP Document.
2.4 One bid/ application per applicant
Applicant can submit application for engagement as concurrent auditor for
institutional finance vertical (IFV) at Mumbai where applicant has a regular
office set-up, either head office or full fledged branch offices.
Firms already engaged with SIDBI:
SIDBI shall engage the services of a firm/ LLP for carrying out
Concurrent Audit of only one office of SIDBI. Accordingly, in case the
applicant has already been engaged as Concurrent Auditor by SIDBI
for any of its branches and or HO Verticals, such Firm/ LLP will not be
eligible under this RfP.
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RfP CA for Operations at IFV, SIDBI, Mumbai
Such firms/ LLP only after completion of specific period (continuous
three years), cooling period of one year would be observed for
considering the services of the CA firm again in the same HO Vertical.
2.5 Late Applications
Any RfP / application received after the deadline for submission of the bids/
applications will be treated as "Late Application" and such late applications shall
not be considered at all for competitive consideration.
2.6 Requests for Proposal
SIDBI may, in its absolute discretion, seek additional information or material from any
applicants after the RfP closes and all such information and material provided must
be taken to form part of that Applicant's response.
Applicants should provide details of their contact persons, Fax, Telephone, email
and full address(s) to ensure that replies to bids could be conveyed promptly.
If SIDBI, in its absolute discretion, deems that the originator of the question will gain
an advantage by a response to a question, then SIDBI reserves the right to
communicate such response to all Applicants.
SIDBI may, in its absolute discretion, engage in discussion or negotiation with any
Applicant (or simultaneously with more than one Applicant) after the RfP closes to
improve or clarify any response.
2.7 Notification
SIDBI will notify all short-listed Applicants in writing as soon as practicable about the
outcome of their bids. SIDBI is not obliged to provide any reasons for any such
acceptance or rejection.
2.8 Disqualification
Any form of canvassing / lobbying / influence / query regarding shortlisting, status,
etc. will lead to disqualification.
3 About SIDBI
3.1 Small Industries Development Bank of India (SIDBI), set up on April 2, 1990
under an Act of Indian Parliament, is the Principal Financial Institution for the
Promotion, Financing and Development of the Micro, Small and Medium
Enterprise (MSME) sector and for Co-ordination of the functions of the
institutions engaged in similar activities.
SIDBI provides its services through a network of Branch Offices located all
over India. Detailed information on the functions of SIDBI is provided on the
website, www.sidbi.in
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RfP CA for Operations at IFV, SIDBI, Mumbai
3.2 SIDBI offers several financial and non-financial products and services for
catering the financial and non-financial needs of Micro Small and Medium
Enterprises (MSMEs) through its field level offices. These include the following
broad areas:
Direct Finance
Bills Finance
Refinance
Promotion and Development
Micro-finance
4 Project Particulars:
The scope of work for Institutional Finance Vertical (IFV) is given in Appendix I.
5 Fee Structure:
The fee structure under this mechanism is based on the outstanding portfolio of the
Head Office Vertical as at the end of previous financial year. The award of contract to
CA firms/ LLPs to undertake concurrent audit will be as per fee structure issued by
the Bank from time to time. The present slab fee structure, based on the outstanding
portfolio size and Average Transactions/ day is indicated below:
Outstanding Portfolio/ Average Fee Payable Per Month (excluding
Transactios/ day GST, etc.)
` 15,246 Crore ` 35,000/ -
Note: Maximum upto 5% annually enhancement in remuneration may be
considered, if the contract is renewed, after one year, provided the performance is
found satisfactory.
No out of pocket expenses or traveling allowance/ halting allowance would be paid to
the concurrent audit firm/ LLP for carrying out the audit. However, the service tax,
education cess/ GST, etc. would be paid by the Bank, as applicable, in addition to the
basic fees. The payment to the concurrent auditors would be subject to deduction of
tax at source, at applicable rates.
6 Selection process
This RfP will be assessed on the following Selection process:-
Invite Request for Proposal (RfP) wherein Technical Evaluation information is
submitted in envelope.
Technical evaluation:
a) The Applicant is required to submit the details of its proposal in sealed
envelope. The envelope should be superscribed "For Technical Evaluation"
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for said Concurrent Audit and should contain detailed statement giving the
various technical particulars of the proposal covering aspects of the Applicant
like name and location, year of establishment, names of its partners, staff, their
qualification/ experience, registration number of the firm/ LLP, details of ICAI
membership/ Certificate of Practice details, methodology proposed and all
other such relevant particulars in the format given in Para 1.5.4 of Appendix I.
b) After the expiry of last date for submission of bids/ application, the
envelope containing the compliance on the "Technical Evaluation" would be
opened in respect of all the applicants to verify the compliance of the
applicants with the prescribed Technical Evaluation information requirements.
[
c) The Technical Evaluation of Application would be carried out by SIDBI. The
technically qualified applicants would be short listed.
d) The requirement of the applicants for IFV Operations is given in Appendix I.
7 Tenure of the contract:
The selected firm/ LLP of Chartered Accountant would initially be assigned the
contract for a period of upto December 31, 2019 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 SIDBI, with NOT MORE THAN
5% increase in professional fee. The concurrent audit is likely to start from
February 01, 2019. The proposed assignment would be subject to periodical
review at the discretion of SIDBI and is liable to be terminated at any time, if not
found satisfactory, by giving a written notice of 15 days.
8 Terms & Conditions:
The Applicant shall ensure that the audit be carried out in a professional manner
and in case of any misconduct & negligence, the Bank may approach the
concerned professional bodies with complaints of professional misconduct, if any,
on the part of any professional engaged by the Bank. Accordingly, we may also
recommend their name to ICAI/ RBI/ IBA or 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 applicant appointed as Concurrent Auditor to IFV should nominate a
Chartered Accountant (CA) who will head the concurrent audit team as the
"Designated Auditor" duly authorised by the FCA partner of the CA firm/ LLP to
act on behalf of the firm. The Designated Auditor would be required to submit his/
her identity proof and address proof together with specimen signatures with a
request to be allotted biometric enabled unique login ID for access to the system.
The Designated Auditor would require to log in and log out of the system each
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working day. The Designated Auditor would require to surrender the login ID on
completion of the concurrent audit tenure or on any change in the Designated
Auditor by the firm/ LLP.
The audit team composition for Concurrent Audit and attendance requirements
should be specified as under :-
a) The FCA partner of the firm/ LLP who shall visit the Vertical at least 4 days in a
month; and
b) Chartered Accountant who shall visit the Vertical preferably on all working
days but for a minimum of 20 days in a month.
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 auditor should not undertake any other activities / assignment on
behalf of the HO Vertical without obtaining the concurrence of the Audit & Fraud
Management Vertical at Head Office, in writing.
The concurrent auditor will co-operate with investigative body, regarding
processing or execution of the consultancy contract or any matter related with
discharge of contractual obligations.
Necessary arrangement would be made for providing space, workstation and
access to systems (viewing rights only) to the concurrent auditor for ensuring
smooth conduct of the audit.
The concurrent auditor shall be granted read only access to the systems of the
Vertical.
The concurrent auditor shall not be allowed to carry any mass storage device
such as pen drive/ flash drive/ thumb drive or any laptop inside the HO premises
as these devices will not be required for the job. Concurrent auditor shall be
provided with computer system with disabled USB ports by the concerned HO
Vertical.
The concurrent auditor is 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 concurrent auditor shall daily go through all the vouchers and books of the
HO Vertical for the previous day and identify areas to be scrutinized 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 Bank
on a case to case basis.
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A. Declarations and undertaking
On appointment, the Applicant shall execute undertaking of fidelity and secrecy
on its letterhead in the format prescribed by the Bank.
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 SIDBI nor will it in future
accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm/ LLP acts as the concurrent auditor for SIDBI.
Any other terms and conditions of the assignment would be decided by the Bank
on a case-to-case basis.
B. Selection Process
All applicants scoring 65 marks or more (in Technical Evaluation) will be selected
as the Technically Qualified Applicant. The top three applicants getting the
maximum marks in Technical Evaluation will be given preference.
Due diligence will be carried out for the top three applicants getting the maximum
marks.
On the recommendation of the Committee, name of the successful applicant
would be identified for the IFV.
The final selection of the successful applicants from the technically qualified
applicants will be done, based on marks scored in Rating Chart
and due diligence carried out by SIDBI.
9 Guidelines & Instructions for applying:
i. SIDBI will endeavour to make available all relevant information in the RfP. In
case of need of any further information or clarification during the application
period, the applicant must contact only the Contact Officer named above. On
no account should the Applicants communicate directly with any other SIDBI
personnel. Failure to comply with this requirement may result in the
disqualification of the applicant from this competition.
ii. Government Tax
Applicants are responsible for establishing the status of the Services for the
purpose of any government tax including GST, cess etc.
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iii. Alterations to Application
Any manuscript or other alteration to the RfP/ Application must be
countersigned and dated by the person submitting the RfP/ application.
iv. Letters and Declaration to Accompany Applications
The bid / Application must be accompanied by a letter on Firm/ LLP letter head
showing the full registered name(s), registered office address of the applicant.
It should be signed by a person of suitable authority to commit the applicants
to a binding contract.
v. Packaging and Delivery of Applications
Applications must be delivered in a double sealed envelope clearly labeled
with the following:
1. Selection of CA for operations at Institutional Finance Vertical (IFV),
Mumbai.
2. Application Due Date
3. Applicant/ Firm/ LLP Name
SIDBI accepts no responsibility for the premature opening of any incorrectly
marked Applications.
Applications must be received at Audit & Fraud Management Vertical, Small
Industries Development Bank of India, SIDBI Tower, 15, Ashok Marg,
Lucknow 226001 (U. P.) for the attention of The General Manager by 2.00
PM on the due date. Late applications will not be accepted under any
circumstance. No special pleadings will be accepted. Faxed or e-mailed
applications will not be accepted.
vi. 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. SIDBI reserves the right to reject any
application which, in SIDBI's opinion, gives rise or could potentially give rise to
a conflict of interest.
vii. 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.
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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 SIDBI, 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/ bid).
If an applicant or related entity or any individual discloses details of any
previous misconduct or complaint, SIDBI will seek an explanation and
background details from them. At the sole discretion of SIDBI and assessment
as to whether the Applicant will be allowed to submit an application, decision
will then be made by SIDBI.
viii. Indemnity
The successful applicant shall exercise reasonable skill, care and diligence in
the performance of the assignment and indemnify and keep SIDBI 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.
ix. Assigning to Others
The successful applicant shall not, without the prior written consent of SIDBI,
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 one 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 SIDBI.
x. Termination
SIDBI may, at its sole discretion and at any time terminate the Contract (after
giving 15 day notice) and inform the CAs of SIDBI'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. No further correspondence will be
entertained in this regard.
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Appendix I
1. Project & Scope for Operation of Institutional Finance Vertical (NBFC &
SFB) at Mumbai
The Institutional Finance Vertical (IFV) handles the business operations of Non-
Banking Finance Company (NBFC) and Small Finance Banks (SFB) operations of
SIDBI. NBFCs (Deposit taking & Non-Deposit Taking) and SFBs are being supported
by SIDBI along with the other Primary Lending Institutions (Banks/FIs) for extending
financial assistance to MSMEs in the country. The NBFCs and SFBs are regulated
and supervised by RBI in terms of registration, prudential norms, capital adequacy
norms, asset liability management, income recognition, accounting standards, credit/
investment norms, compliance of KYC norms, adopting code of fair business
practices and several disclosure requirements.
Project Objective & Scope of NBFC and SFB Operations
The selected firm/ LLP of Chartered Accountant would undertake the concurrent audit
of NBFC and SFB operations of SIDBI. 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 for carrying out the concurrent audit
should be qualified and experienced in the area of work.
The major areas of work include:
1.1 Pre-sanction stage:
(i) To check the application from the Borrower.
(ii) To verify the completeness and appropriateness of various certificate/
documents/ information submitted by the Borrower.
(iii) To verify the compliance of KYC guidelines and other Due diligence measures.
(iv) To verify the proper and correct entry of data/ information into the systems.
(v) To verify the compliance with eligibility parameters for sanction as per the
extant Loan Policy of the Bank as also with various guidelines issued by
SIDBI, RBI and other regulatory authorities in connection with lending to
NBFCs and SFBs.
1.2 Post Sanction to disbursement stage
(i) To verify the compliance with all extant guidelines and terms of sanction,
(ii) To verify that the terms of sanction are captured while conveying sanction to
the Borrower,
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(iii) To verify the various documents executed and security creation,
(iv) To verify the disbursement,
(v) To verify that correct data and accounting entry into the system has been fed
(vi) To verify application of correct interest rate and reset terms as approved by
Competent authority.
1.3 Monitoring and Post disbursement stage
(i) To verify that periodic reset of Interest rate as per the terms of approval by the
competent authority and updation of the same in the system
(ii) To verify the Periodic/ recurring Compliance with terms of sanction
(iii) To verify the compliance with end use related terms of sanction
(iv) To verify the compliance of all applicable internal and RBI guidelines
1.4 Reports:
The firm/ LLP will have to submit the following reports to the Management
relating to NBFC and SFB Operations:
I. Daily reports covering day-to-day transactions with regard to their
correctness, monitoring of risks and observations, if any, on counterparty and
other specified limits by the Bank, etc.
II. Monthly reports covering comments on adherence to regulatory and internal
policy guidelines including post disbursement monitoring guidelines and areas
of audit as indicated at para 1.1 1.3 including submission of MIS to
Management. Reconciliation of accounts and other similar periodic
submission.
III. Quarterly report on closing work pertaining to the operations and tallying of
trial balance.
IV. Any other related report as may be required by SIDBI from time to time.
It is expected that the above work would require about 250 - 300 hrs of work in a
year. However, the same may not be evenly distributed through the year.
The above reports with regard to NBFC and SFB Operations should be submitted to
The Chief General Manager, Institutional Finance Vertical at Mumbai, both in soft and
hard forms, within a week of the reporting period for which the report pertains. Daily
reports should be released at the end of the day to The Chief General Manager,
Institutional Finance Vertical at Mumbai, both in soft and hard form. The formats of
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the reports would have to be devised, wherever required, by the firm/ LLP in
consultation with and approval of SIDBI
SIDBI 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
periodically, as and when required. The firm/ LLP should strictly adhere to the format
and the time limit. SIDBI may prescribe different periodicity for different reports of the
operations.
1.5 Technical Evaluation Procedure of the applicants:
The technical capabilities of the applicants with regard to audit of the operations
pertaining to financing of NBFCs and SFBs would be evaluated based on the
following criteria and weightage:
1.5.1 Technical Evaluation Criteria for Operations pertaining to financing of
NBFCs at Indirect Finance Vertical, Mumbai.
1.5.2 Pre-Requisite for Applying
The Applicant should
Furnish proof of Valid registration/ Certificate of Practice from the
Institute of Chartered Accountants of India (ICAI).
Be a Partnership firm of Chartered Accountants with minimum 3 partners
of which at least 2 partners should be FCA(s). At least one partner
should have a continuous association with the firm of a minimum of 5
years and another partner should have a continuous association with the
firm of a minimum of 3 years. The details of each partner including
experience, qualification etc., and their Registration Number with
Institute of Chartered Accountants of India (ICAI) to be furnished as
documentary proof.
Has minimum five years of previous track record of carrying out
concurrent audits in other Financial Institutions/ Public/ private Sector
Banks particularly in the area of financing to NBFCs/ Refinance to Banks
(with documentary proof).
CA firm has its HO or Branch office at Mumbai.
Without compliance of the above pre-requisites, the applicant will not be
eligible for applying.
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RfP CA for Operations at IFV, SIDBI, Mumbai
1.5.3 Technical Evaluation Criteria for Operations pertaining to financing of
NBFCs at Indirect Finance Vertical, Mumbai. (Rating Criteria)
Rating Chart
Maximum
Sl.
Criteria Marks
No.
(Weightage)
i Year of establishment of Chartered Accountant firm/ Limited Liability
Partnership (LLP) of Chartered Accountants.
Upto 5 years 10 Marks 20
5 to 10 years 12 Marks
10 to 15 years 15 Marks
More than 15 years 20 Marks
ii. Firms/ Liability Partnership (LLP) of Chartered Accountants with
minimum 3 partners of whom at least two should be FCA. At least
one partner should have a continuous association with the firm
30
of a minimum of 5 years and another partner should have a
continuous association with the firm of a minimum of 3 years.
- (20 Marks)
1.5 marks to be awarded for each additional partner (over and
above 3 partners) of the firm and 01 mark for full time CA employee
(Maximum marks - 10)
iii Minimum five years of previous track record of carrying out such
audits in other Financial Institutions/ Public/ Private Sector Banks 30
mainly in the area of financing to NBFCs/ Refinance to Banks. (with
documentary proof) 30 Marks
iv. Whether the firm/ LLP empanelled with RBI as
Statutory Central Auditor 10 Marks 10
Statutory Branch Auditor (Category I) 7 Marks
Statutory Branch Auditor (CategoryII) 5 Marks
v. Availability of suitable infrastructural facilities including office set up,
adequate manpower who are specialized in the area of audit of financing
of NBFCs. Presence in India - number of offices and permanent 10
manpower along with regular set-up, either Head Office or full fledged
Branch Offices, at Mumbai.
Branch (locally) 5 marks
Head Office (locally) 10 marks
Maximum technical score 100
***************
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RfP CA for Operations at IFV, SIDBI, Mumbai
1.5.4 Technical Evaluation Criteria for Operations pertaining to financing of
NBFCs at Indirect Finance Vertical, Mumbai.
a) Audit Firm/ LLP Details:
Sl.
Requirements Remarks
No.
1 Name of the Chartered Accountant Firm/ LLP with year of establishment.
2 Registration Number / Certificate of Practice from the Institute of Chartered
Accountants of India (furnish documentary proof, Registration should be
valid).
3 Knowledge and experience in carrying out audit of Financial Institutions/
Public/ private Sector Banks particularly in the area of financing to NBFCs/
Refinance to Banks.
4 Details of every partner including experience, qualification etc. and their
Registration number with CA Institute (furnish a detailed list of all the
partners)
Sl. Name of Education Period of
the Age Experience Association with
No. Partner Qualification the firm
5 Minimum five years of previous track record of carrying out such audits in
other Financial Institutions / Public Sector /Private Sector Banks mainly in
the area of financing of NBFCs/ Refinance to Banks (furnish documentary
proof)
6 Whether the firm/ LLP empanelled with RBI (furnish documentary proof).
7 Availability of suitable infrastructural facilities including office set up (Branch
office/ Head office at location of SIDBI's Branch/Head office may be
specifically indicated), adequate manpower who are specialized in the area
of audit of financing of NBFCs/ Refinance to Banks. Competence and
qualification of key professional staff who shall carry out the assignment in a
time bound manner (furnish a detailed list of all the skilled/ semi skilled
employees/ staff).
8 Whether the firm has regular set up with Branch Office or Head Office at
Mumbai.
9 Whether the audit firm/ LLP or any sister/ associate concern is conducting
the statutory audit of SIDBI or Concurrent Audit in any of SIDBI branches.
Note: All the relevant details & documentary evidence are to be furnished. The above is only a
format. Information may be submitted in additional sheet.
i. The following declaration/ undertaking shall be furnished by the firm.
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RfP CA for Operations at IFV, SIDBI, Mumbai
ii. The firm/ LLP shall agree to execute undertaking of fidelity and secrecy on its
letterhead in the format prescribed by the Bank, if the contract assigned.
a) A declaration to 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/ RBI guidelines.
b) The firm / LLP must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future
accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm / LLP acts as the concurrent auditor for SIDBI.
b) Details of audit mainly in the area of financing to NBFCs/ Refinance to banks/ FIs.
Year of Audit/ Period (From -
Sr. Name of the
Branch/HO To) [Data required for the last
No. Bank/FIs
10 years of your firm]
c) Details of Statutory Central Audits (Category - I) of various Banks
Year of Audit/ Period (From -
Sr. Name of the
Branch/HO To) [Data required for the last
No. Bank/FIs
10 years of your firm]
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RfP CA for Operations at IFV, SIDBI, Mumbai
Declarations:
All the applicants should submit their bid along with the following
declarations and undertaking
(i) Declaration to be furnished in the letter head of the firm/ LLP.
We hereby declare that the information submitted above is complete in
all respect 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 application is liable to be rejected.
Date: Authorised
Signatory
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RfP CA for Operations at IFV, SIDBI, Mumbai
(ii) Declaration of Eligibility
I/ We _______________________________Chartered Accountants
hereby declare that I/ We comply with the eligibility conditions specified, established
under the Chartered Accountants Act, 1949, and I/ We declare that:
None of the Partners of the firm do not have any disciplinary proceeding under the
Chartered Accountants Act, 1949 pending against them or any disciplinary action
under the Chartered Accountants Act, 1949/ penal action under any other law taken/
pending against him/ her.
Credit facilities availed by the firm or partners or firms in which 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.
The firm does not have any professional relationship with any of the borrowers of
SIDBI nor will it in future accept professional relationship with any of the borrowers of
SIDBI during the period during which the firm acts as the concurrent auditor for
SIDBI.
It is further confirmed that the firm is not the Statutory Auditor of Small Industries
Development Bank of India (SIDBI).
None of the Partner of the firm hold any shares or other securities (including options
or furthers) in Small Industries Development Bank of India (SIDBI).
Our Firm will continue to satisfy the eligibility norm for appointment of Chartered
Accountants as Concurrent Auditors as prescribed by the Bank from time to time.
I/ We understand that any breach of the provisions regarding
eligibility shall be considered as gross negligence and may result in appropriate
action under the Chartered Accountants Act, 1949.
For ________________________
Chartered Accountants
Place: ______________
Date: _______________
Partner
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