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Central Coalfields Limited, Ranchi, Jharkhand
December, 31st 2019
   Central Coalfields Limited
                            (Miniratna Company)
                     (A Subsidiary of Coal India Limited)

            Tender No. : CCL/IAD/Internal Auditor/2019/01
                            Open e-Tender

                             Tender Document

For Appointment of Internal Auditor for a period of 3 years from 2020-21

   IFB Ref. No. IA/CCL/S&TA/OS Firm/Appt.-2020-21/19-20/1451 date 20.12.2019




           Central Coalfields Limited
      Darbhanga House, Ranchi ­ 834001, Jharkhand




                                  Page 1 of 50
                                Invitation for Bids (IFB)

1. Central Coalfields Limited, a Miniratna Company (A Subsidiary of Coal India
   Limited & Govt. of India Undertaking) having its registered office at Darbhanga House,
   Ranchi ­ 834001, Jharkhand, India, invites online bids through e -tender on CCLs
   website     www.centralcoalfields.in     through     CILs     e -procurement      portal
   (https://coalindiatenders.nic.in) for empanelment of practicing Chartered
   Accountant or Cost Accountant or a Firm / LLP of Chartered Accountants / Cost
   Accountants registered with the Institute of Chartered Accountants of India /
   Institute of Cost Accountants of India for conducting Internal Audit in respect of
   CCL i.e. (i) CCL (HQ) ­ Ranchi, GNH, & Kolkata office, CCL (ii) Argada Area (iii) Barka
   Sayal Area (iv) B & K and Giridih Area (v) CRS/CWS- Barkakana (vi) Dhori Area (vii)
   Hazaribagh Area (viii) Kathara Area (ix) Kuju Area (x) NK Area (xi) Piparwar Area (xii)
   Rajrappa and (xiii) Rajhara & Magadh Amrapali Area from which 13 Auditors will be
   selected for a period of 3 years from 2020-21. The selected candidates have to
   conduct monthly audit as specified in Scope of Audit (Annexure-A) and Terms of
   Reference (Annexure-B).
2. All supporting documents regarding Application Format (Annexure- C), such as
   Firm Profile, Constitution Certificate, Certificate of Practice, Membership
   Certificate, Mark Sheets/Certificate of IPCC/Inter Examination, Appointment
   letters and Statement of Accounts (in respect of SI. 13 of Application Format), etc.
   duly signed with seal must be enclosed. In absence of documentary evidence, no
   marks will be accorded to a particular criterion, without assigning any reason.
3. A declaration to the effect that all the terms and condition of tender has been
   accepted unconditionally must be submitted along with the application.
4. The complete offers including Application Format, indicating current status as on
   date of submission of tender, should preferably be typed in the letter head of the
   firm. No hand written offer will be accepted.
5. Overwriting / corrections/erasing and use of white ink should be avoided.
   However, if any correction is inevitable, the same should be authenticated with
   signature and seal.
6. Central Coalfields Limited reserves the right to reject or accept or withdraw the
   tender in full or part, as the case may, be without assigning any reasons thereof. No
   conditional offer will be accepted.
7. The complete tender document shall be available on CILs e -procurement portal
   https://coalindiatenders.nic.in for downloading and submission of offer. The
   complete tender document shall also be available on Central Coalfields website
   www.centralcoalfields.in       and     Central     Public       Procurement       portal
   (http://eprocure.gov.in) for downloading only.
8. There will be no physical/manual sale of tender document. There is no
   Tender Fee and the bidders can download tender document free of cost
   from any of the websites mentioned above.



                                        Page 2 of 50
9. Details of tender: -

                                          Tender No.: CCL/IAD/Internal Auditor /
   1    Tender No.                        2019/01 vide Ref. IA/CCL/S&TA/OS Firm/Appt.-
                                          2020-21/19-20/1451 date 20.12.2019

   2    Type of Tender                    Open Domestic Tender

        Estimated value of Tender         Rs. 2,26,80,000/p.a - (Applicable Taxes will be paid
   3                                      extra).
   4    Tender Fee                        NIL
   5    Earnest Money Deposit             Not Applicable
                                          Appointment of Internal Auditor for a period of 3
   6    Subject of Tender
                                          years from 2020-21.
   7    e-Publishing date of Tender       24.12.2019

   8    Downloa ding of Tender Document

        (i) Starts on                     24.12.2019 from 18:00 Hours [IST]
        (ii) Closes on                    08.01.2020 upto 18:00 Hours [IST]

   9    Seeking Clarification

        (i) Starts on                     24.12.2019 from 18:00 Hours [IST]
        (ii) Closes on                    29.12.2019 upto 18:00 Hours [IST]

  10    Online Submission of Offers

        (i) Start Date and Time           24.12.2019 from 18:00 Hours [IST]
        (ii) Last Date and Time           08.01.2020 upto 18:00 Hours [IST]
        Due date of Opening of
  11                                      09.01.2020 upto 18:00 Hours [IST]
        Tenders


10. The offers have to be submitted online on CCLs website www.centralcoalfields.in
    through the CIL's e-procurement portal https://coalindiatenders.nic.in . The
    tenderer has to get themselves enrolled on the above portal and follow the
    procedure laid therein for submission of offer. The Online Bidder Enrolment is free
    of cost and one -time activity only.


11. There is no provision to take out the list of parties who have downloaded the
    tender document from the above referred website. As such, bidders are requested
    to visit the website once again before the last date of submission of offer/due date
    of tender opening to ensure that they have not missed out any corrigendum
    issued against the said tender after they have downloaded the tender document.
    The responsibility of downloading the corrigendum, if any, will be of the bidder.
    No separate intimation in respect of corrigendum to the NIT (if any) will be sent
    to the bidders who have downloaded the tender document from website.




                                      Page 3 of 50
12. The bidders, in their own interest, are requested not to wait till the last moment
    for submission of bid to avoid last minute rush and local problems related to
    internet connectivity, law and order, strike, bandh etc. The Company shall not be
    responsible, if bids could not be uploaded due to such local problems at the
    bidders end.
13. The interested bidders may obtain further information from the office as under:




    GM/HOD, Internal Audit, CCL
   Darbhanga House,
   Ranchi ­ 834001, Jharkhand
   Phone: 0651-2365245
   Email address: iadccl@yahoo.co.in


                                                               Sd/-

                                           GM/HOD, Internal Audit, CCL
                                  For and on behalf of Central Coalfields Limited




                                     Page 4 of 50
                            Instructions to Bidders (ITB)

1. Requirements for participation in e-tender:
    In order to submit the online offer on CCL website through CIL's e-Procurement
    portal https://coalindiatenders.nic.in the bidders should meet the following
    requirements:
    a) PC connected with Internet (For details, visit link "Bidders Manual Kit"
        on        home       page        of       CIL's     e-Procurement          portal
        https://coalindiatenders.nic.in) . It will be the bidders responsibility to
        comply with the system requirements i.e. hardware, software and internet
        connectivity at      bi dders premises to         access the      e -Procurement
        website. Under no circumstances, the Company shall be liable to the
        bidders for any direct/indirect loss or damages incurred by them arising
        out of incorrect use of the e-Procurement system or internet connectivity
        failures.
    b) Enrolment             with           CIL's        e-Procurement             portal
        https://coalindiatenders.nic.in The online enrolment of the bidders on
        the portal is free of cost and one time activity only. The registration
        should be in the name of bidder whereas DSC holder may be either
        bidder himself or its duly authorised person having DSC indicating name
        of firm as that of bidder. It shall be the responsibility of the bidder to
        ensure that they get registered with the CILs e-Procurement portal well
        in advance and download the documents before the last date and time
        for the same.
    c) Class II or Class III Digital Signature Certificate (DSC) issued by a
        Certifying Authority authorised by Controller of Certifying Authority
        (CCA) and which can be traced up to the chain of trust to the R oot
        Certificate of CCA.
   2. Help for participating in e-tender:
       The detailed method for participating in the e-procurement is available on
       links "Help for Contractor" and "Bidders Manual Kit" in CILs e Procurement
       portal. The bidders may also seek help from the help-desk on
       the numbers available on CILs e -Procurement portal. All queries will be
       answered in English / Hindi only.
   3. Communication:
       All communication sent by the Company as well as the e-procurement
       portal by post/fax/e-mail/SMS shall be deemed as valid communication.
       The bidder must provide complete address, fax number, corporate e-mail
       id and mobile number.
   4. Cost of Bidding:
       The bidder shall bear all costs associated with the preparation and online
       submission of bid and the Company will in no case be responsible or liable
       for those costs, regardless of the conduct or outcome of the bidding process.
   5. Clarification of Bid Documents and Last date for submission of Bid:

                                       Page 5 of 50
    A prospective bidder may seek clarification online through CILs e-procurement
    portal after e-Publication of the NIT. The Company will respond to such
    requests for clarification of the Bid Documents, which are received not later
    than 10 (Ten) days prior to the deadline for the online submission of bid.
    Companys response shall also be put on the CILs e-procurement portal. Bids
    must be submitted alongwith all supporting documents in the CIL e-
    procurement portal online before or up to the scheduled time and date as
    mentioned in ITB.
6. Due date of opening of Bid:
    Bids will be opened online at the scheduled time on the due date of opening
    as mentioned in IFB. In the event of the scheduled due date of opening of
    bids being declared as a closed holiday for purchasers office or due to Force
    Majeure reasons, the due date for opening of bids will be the next working day
    at the scheduled time.
7. Extension of due date of tender:
    CCL reserves the right to extend the due date of tender as deemed fit on case
    to case basis by issue of corrigendum through portal. Further, if at least 3
    bids are not received within originally stipulated due date, the due date
    shall be extended by 2 (two) days by the portal automatically. In case even
    after one extension of due date by 2 (two) days, less than 3 bids are received,
    the due date shall again be extended by another 5 (five) days by the portal
    automatically. If, even after granting two extensions (2 days + 5 days), less
    than 3 bids are received, the tender shall be opened without further
    extension. Separate paper publication of corrigendum for extending the due
    dates shall not be made. In case no offer is received after granting two
    extensions (2 days + 5 days), the tender will be cancelled.
8. Language: The language of the bid shall be English. All documents enclosed
    should also be in English language. In case the original document is in a
    different language, self-attested English translation with signature and stamp of
    the authorised signatory of the bidder who has signed the LOB, shall be
    furnished.
9. Earnest Money Deposit: Not Applicable .
10. Letter of Bid (LOB): The format of Letter of Bid (LOB) as given at Annexure - D
    will be downloaded by the bidder and will be printed on Bidders letter head
    and duly Signed by a person competent and having the "Authority"/ "Power of
    Attorney" to bind the bidder. Scanned copy of such a "Signe d & Stamped with
    the seal of the company" LOB along with "Authority"/ "Power of Attorney" are to
    be uploaded during bid submission in Cover- I. This will be the covering letter
    of the bidder for the submitted bid.
    The content of the "Letter of Bid" uploade d by the bidder must be the same
    as per the format downloaded from website and it should not contain any
    other information. If there is any change in the contents of Letter of Bid
    uploaded by bidder as compared to the format of Letter of Bid uploaded by


                                   Page 6 of 50
    the department with NIT document, then the bid may be liable for rejection.
    These documents are to be uploaded in folder named "TECHNICAL DOCS"
    provided in the e procurement portal.
    Note: The person who has signed Letter of Bid physically should bid online
    while submitting the offer with his DSC mapped in the name of bidder. In
    case the person who has signed LOB is not bidding himself and has
    authorized another person whose DSC is mapped in the name of bidder,
    to bid online on his behalf, then the further authorization on non-judicial
    stamp paper duly notarized (as per Annexure - E) by the person signing the
    LOB in favour of person bidding online is required to be uploaded. This
    document is to be uploaded in folder named "TECHNICAL DOCS".
11. Methodology for online Submission of Bids
    The offers are to be submitted online through CILs e -procurement portal in 1
    (one) cover (Cover - I ,,Technical Bid). Authenticated and Scanned copies of
    documents shall be uploaded in folders named as "TECHNICAL DOCS".
    The Cover -I ,,Technical Bid is to be uploaded in e -procurement portal
    before the last date and time for submission of online bid. No offline bid
    shall be accepted. Offer received through Post, Courier, Fax or E-mail will
    not be considered.
12. Evaluation of Bids
  (i) After opening of the bid, the documents submitted by firms will be
      downloaded and shall be put up to the evaluating Committee. The Committee
      will examine the uploaded documents against information/declarations
      furnished by firms online. If it confirms to all of the information/ declarations
      furnished by the firm online and does not change the eligibility status of the
      firm, then the firm will be considered eligible for next level.
  (ii) Bids which have not been submitted with valid documents will not be
      considered for further evaluation.
  (iii) After evaluation of the uploaded documents, shortfall documents, if required,
      shall be sought from the bidders by the evaluation Committee. For this
      purpose, maximum 2 chances shall be given. The time period for first
      clarification will be considered for 7 days and for the subsequent second
      clarification, if required, as 5 days. The firm will get this information on their
      personalized dash board under "Upload confirmatory document" link.
      Additionally, information shall also be sent by system generated email and
      SMS, but it will be the firms responsibility to check the updated
      status/information on their personalized dash board regularly after opening of
      bid. No separate communication will be made in this regard. Non- receipt of
      email and SMS will not be accepted as a reason of non-submission of
      documents within prescribed time. The firm will upload the scanned copy of
      all those specified documents in support of the information/ declarations
      furnished by them online within the specified period.



                                    Page 7 of 50
  (iv) The offers will be evaluated in accordance with the criteria mentioned in
      Annexure-F on the basis of documents uploaded by firm online. The firm is
      not required to submit hard copy of any document through offline mode. Any
      document submitted offline will not be given any cognizance in the evaluation
      of offer.
  (v) In case the firm submits requisite documents online as per tender document,
      then the firm will be considered eligible for next level.
  (vi) In case the firm fails to submit requisite documents online as per tender
      document or if any of the information/declaration furnished by firm online is
      found to be wrong by Committee during evaluation of scanned documents
      uploaded by firm, which changes the eligibility status of the firm, then his bid
      shall be rejected.
  (vii) In case none of the firms complies the technical requirement, then
      necessary action as deemed fit by management will be taken .
  (viii) It is responsibility of firms to upload legible/clearly readable scanned copy
      of all the required documents as mentioned above.
13. Scanned copy (PDF) of supporting documents duly signed and stamped
    should be uploaded in the Folder provided for this purpose. However, CCL
    reserves the right to verify such documents with the original, if necessary.
    Bidder has to submit the originals to CCL on demand.
14. The offer should be submitted strictly as per the terms & conditions laid down
    in the tender document, failing which the offer will be liable for rejection. No
    deviation of the terms and conditions of the tender document is acceptable.
    Terms and conditions which are in deviations of the tender terms are liable for
    rejection.
15. CCL reserves the right to reject or accept or withdraw the tender in full or part
    as the case may be without assigning reason thereof.
16. CCL also reserves the right to short close the contract in case of breach of terms
    and conditions of the contract by the tenderer.
17. All notices to the bidders shall be sent by e -mail only during the process of
    finalisation of tender by CCL as well as e-procurement portal. Hence the
    bidders are required to ensure that their corporate e -mail id is provided /
    updated during the registration of vendor with e -procurement portal. Bidders
    are also requested to indicate their valid corporate e -mail id and mobile no. of
    authorized representative at Instruction to Bidders for communications through
    e-mails /SMS alerts (if any).
18. Modification of the submitted bid shall be allowed online only before the
    deadline of submission of tender and the bidder may modify and resubmit the
    bid online as many times as he may wish. Bidders may withdraw their bids
    online within the last date and time of bid submission.
19. No modification of the bid or any form of communication with CCL or
    submission of any additional documents, not specifically asked for by CCL, will
    be allowed and even if submitted, they will not be considered by the purchaser.

                                   Page 8 of 50
20. In case of any technical mistake in online offer and NIC confirming that there
    is no fault from their side then CCL will not be held responsible for the
    consequences and no correspondence in this regard will be given any
    cognizance by CCL.

   Encl.: Annexures


                                                             Sd/-
                                                  GM/HOD-Internal Audit, CCL




                                  Page 9 of 50
                                                                                       Annexure - A

                                         SCOPE OF W ORK

   The list is only illustrative and Internal Auditor is not bound in it. The Auditor is
   expected to be innovative and deeply review internal controls; compliance of delegation
   of powers, spending is judicious, look into wastages, pilferages, and theft and fraud
   prone areas deeply. Sudden check, physical verification, integrity check and
   suspicious transactions all need to be tracked by the Internal Auditor. The entire
   operations from all angles is in your scope and those who are innovative and bring to
   the management notice significant and material issues and solutions will be
   adequately taken care in the assessment.


1 COAL PRODUC TION AND OVERBU RDEN (OB) RE M OVAL:



1.1 PRODUCTION:
To Check and Verify the reported production as per the reporting formats as approved by the Board
and amended from time to time along with Form -Han d to report variations, if any:
1.1.1 Under Ground
Coal Production:
a) Checking of Shift-wise coal production as per Form 1-A,
b) Checking of Form 2-A, daily report of coal production with the Form 1-A,
c) Checking of monthly report of coal production as per Form 4-A, difference if any to report.
d) Checking of daily and monthly coal production from outsourced, if any.
e) Checking of coal loa de d in tubs and payment to piece rated workers (in case of manual loading.
f) Whether conversion factor of coal is reviewed in every third year, if applicable?
1.1.2     Open Cast:
1.1.2. (a)Coal - Departmental
i) Checking of Shift-wise coal production as per Form 1-D,
ii) Checking of Form 2-D, daily report of coal production with the Form 1-D,
iii) Checking of monthly report of coal production as per Form 4-A, difference if any to report.
1.1.2. (b)Coal ­ Outsourced
i) Checking of Shift-wise coal production as per Form 1-E,
ii) Checking of Form 2-E, daily report of coal production with the Form 1-E,
iii) Checking of monthly report of coal production as per Form 4-A, difference if any to report.
1.1.2. (c)Overburden - Departmental
i) Checking of Shift-wise Over Burden (OB) removal as per Form 1-B,


                                               Page 10 of 50
ii) Checking of Form 2-B, daily report of OB removal with the Form 1-B,
iii) Checking of monthly report of OB removal as per Form 4 -A, difference if any to report.
1.1.2. (d)Over Burden - Outsourced
i) Checking of Shift-wise Over Burden (OB) removal as per Form 1-C,
ii) Checking of Form 2-C, daily report of OB removal with the Form 1-C,
iii) Checking of monthly report of OB removal as per Form 4 -A, difference if any to report.
1.1.3 W ashery:
1.1.3. (a) Raw coal received
i) Checking of Shift-wise coal received as per Form 1-F,
ii) Checking of Form 2-F, daily report of coal received at Washery with the Form 1-F,
iii) Checking of monthly report of coal received as per Form 4-A, difference if any to report.
1.1.3. (b)Production:
i) Checking of Shift-wise coal processed in washery as per Form 1-G,
ii) Checking of Form 2-G, daily report of coal processed in washery with the Form 1-G,
iii) Checking of monthly report of coal processed in washery as per Form 4-A, difference if any to
report.
1.1.4       Capacity utilization of the washery and comment on the reasons for un derutilization if
any.
1.1.5       Percentage of yield an d comparison of the same with the target and last years figures and
reasons for variance, if any.


2 SALES & M ARKETING
2.1         Report on actual off-take with the Annual Action Plan (AAP) target.
2.2         Checking of records that the coal is dispatched after weighing on electronic weighbridges
and if not report thereof.
2.3         Report on   deduction due to gra de slippage, deduction due to non-computerized
Weighment, quantity deduction an d any other.
2.4         Report on overloa ding/under loa ding (quantity and amount) an d Demurrage paid to
Railways.
(a) For demurrage charges incurred, to report on -
(i) Whether indent for wagon placed with Railways are more than the capacity of the siding?
(ii) Whether there is untimely supply of wagons, where manual loading is done?
(iii) any other reason for such demurrage.
(iv) Whether any protest lodged with Railways for unreasonable claim.
(b)    Whether Demurrage charged is owing to failure of Contractor where wagon loading is done
contractually? If so, whether such demurrage has been recovered from contractors bill?








                                               Page 11 of 50
2.5        Report on Maintenance of records for roa d sales ­ Delivery Order wise, Party wise Ledger,
Weighment register, Gate Pass, etc.
2.6        Report on incidences of theft of coal if any.
2.7        Report on Performance of weighbridge and % of coal weighed.
2.8        Report of unweighted wagons, if any with the name of the party and place of coal
despatched, basis of raising of sale bill.
2.9        Report on delay in raising invoices for credit sales on the following:
(a) Time taken by various de partments
(b) Date of loa ding
(c) Date of receipt of RR
(d) Date of billing
(e) Date of dispatching the bill.
2.10       Report on pen ding C forms ­ age wise and party-wise with reason of delay and steps taken
to collect the same.
2.11 Checking of Monthly reconciliation between billed quantity and dispatched quantity. If any
variation report thereof with reasons.
2.12 Checking of dispute d an d un disputed dues of Sun dry Debtors, age -wise and reason wise and
report on disputed dues and to check the payments are received as per the fuel supply agreement.
2.13 Checking of records of BG and timely action taken for renewal and encashment as the case
may be and also that the lapsed BG have been returned to the party an d all BG have been verified
from the Bank through post or through S FMS (Structured Financial Messaging System) mode.
2.14 Checking of Sale bills (test check) are raised as per the Delivery order and surface
transportation charges are billed with reference to lead certificate with applicable rates.
2.15 Report on input ta x credit availed correctly an d fully against VAT and Central Excise duty on
revenue as well as capital items.
2.16 Report on incentive/bonus bills has been raised timely and correctly as per FSA an d realization
thereof and also credit note for penalty for non-supply of coal as per norm, if any, has been given.
2.17 Report on forfeiture of EMD from e -auction parties with quantity and value during the
period/year. In case failure on part of the Company, competent approval is taken for refund of full
value of coal, to re port quantity and value thereof.
2.18 To check whether debit/credit notes have been issued within 30 days of receipt of analysis
report to the customers for settled case of gra de variance etc., if not report thereof.
2.19 No. of com plaints and grievances received from customers and settled during the period/ year.
2.20 Checking of Delivery Orders for coal is in accordance with Fuel Supply Agreement or any other
agreement/order and full amount is received from the customers.
2.21 Check the records for supply of coal through washery mode is as per FSA or any other



                                                Page 12 of 50
     arrangement and a pproval of com petent authority is taken.
     2.22 Checking of Quarterly reconciliation of balances in Subsidiary ledger with the General Ledger, if
     any variance report thereof.
     2.23 Checking of advance amount received from the customer with the bills raised an d in case
     excess amount, refunded timely, if not report thereof.
     2.24 Checking of EMD amount received on e -auction of coal an d a djusted against delivery orders
     issued and in case party has not deposited balance value of coal, whether the EMD forfeited and
     accounted for.
     2.25 Checking of reconciliation of Billing & realization report.
     2.26         Report on Weighbridge calibration done by the statutory authority and date thereof.
     2.27         Checking of un der loa ding charges calculated as per the Railway guidelines and allowed
     as per the provisions of FSA.
     2.28         Report on the under loa ding cost and quantity and reason thereof, its comparison with
     correspon ding period of previous year and previous month.
     2.29         Railway Siding:
     a) Checking of Shift-wise coal received at Railway Siding and dispatch,
     b) Checking of daily report of coal received at Railway Siding and dispatch,
     c) Checking of monthly report of coal received at Rai lway Siding and dispatch, difference if any to
     report.

     3.Checkingof Quantitative reconciliation:
     Opening stock, production, off-take (Dispatch + own consum ption) and closing stock as per
     production report an d com pare the same with Form "H" an d variation, i f any, should be reported.
     Note:
a)      Opening stock should be verified with the closing stock of the same in Form -H of the previous
     month/period.
b)      Production should be verified from the production report as mentioned herein before.
c)      Dispatch should be verified from Sale Bill Register.
d)      Inter unit transfer should be verified from Stock Transfer statement.

 4      PRODUCTIVITY:
 4.1 Analysis of OMS.
            a) Checking of overall OMS and com parison with previous month & target and report thereon.
            b) Checking of de partmental overall OMS vi s-a-vis total overall OMS and report thereon.
            c) Checking of OMS for departmental coal production and outsourced coal production and
               report thereon.
            d) Checking of Loaders OMS (Un derground) an d com parison with previous month & target and
               report thereon.


                                                    Page 13 of 50
5     INPUTS
5.1 M ANPOW ER:
      a)     Checking of actual deployment of manpower with the approved manpower. Re port on
      short/excess manpower and report thereon, if possible discipline wise. Also to report on gainful
      utilization of surplus man power, if any.
      b)     Checking of diversion of pi ece-rated workers in time -rated jobs, num ber of such cases and
      whether approval of com petent authority is taken for such diversion, if not report thereon.
      c)     Checking of Absenteeism statement with the Attendance Register, if variance report
      thereon.
    5.2      M ACHINES (HEMM , CHP, SDL, L HD, CM , Surface M iners, High W all Equipment,
    Power Support Longwal etc.):
    5.2 .1   Checking of Monthly Performance of the HEMM and UG machines with respect to Last
    Years Actual and with previous month.
    5.2 .2   Checking of HEMM an d UG Machines under breakdown for more than three months,
    more than three months to one year and more than one year, separately for machines and recovery
    made for break down, if any:
    (i) Under MARC
    (ii) Under Warranty
    (iii) Others

    5.2 .3 Report on HEMM an d other Machines ­
     i.Report on mismatch of Equipment in case of Opencast mines - digging and transporting of coal/
      OB with quantitative details.
    ii.Checking of HEMM an d UG machines which have completed its life as per norms and whether
      the same is surveyed off or machine is still in operation, report thereon.
 iii.Checking of replaced machines in place of surveyed-off during the period un der audit.
    iv.Checking of Machines surveyed off and groun ded during the period un der audit.
    v. Checking of productivity of the machines and in case it is less than the norms, report thereon.
    5.2 .4   Maintenance of Logbooks of HEMM an d other Machines:
     i. Checking of logbooks:
      a)     All columns are filled up,
      b)     Entry of POL is done on regular basis and in case of variation from previous day reasons
      to be recorded,
      c)       Hour/service mete r of the machines are in working order, if not working, report thereon.
      d)     Entry of major sub-assemblies and spares fitted in the machine.
      e)     Maintenance of HEMM as per maintenance schedules is done, if not, report thereof.
      ii.    Logbooks are signed by the concerned authorized person and operator.



                                                  Page 14 of 50
   iii.     Checking the performance of individual machine from logbook viz. working hours,
       breakdown h ours, available hours, progressive hours on test check basis and report thereof.
   iv.      Checking of time lag between the date of issue of mai n spares and date of its fitting in the
       machine.
 5.3        Burnt Oil: Checking of section wise burnt oil received and dispose d.
 5.4        Checking of actual Performance of the Equipment under maintenance contract (MARC)
 Vis-à-vis terms of the contract.
 5.5        Workshop ­ checking of jobs assigned and com pleted within time schedule if delayed
 report thereof and checking of amount charged for jobs an d bills raised, test check.
 5.6        Rehabilitation of Equipment
i. Report on the machines rehabilitated an d com pleted useful life (in terms of years and hours) as
 per norms, if not report thereof.
ii. To check that the equipment rehabilitation norms of CIL have been followed, if not report thereof.

 6 EXPLOSIVES:
 6.1        Checking of statutory records required as per rule, if not report thereof.
 6.2        Checking of Actual powder factor separately for Coal an d OB party wise and com pared
 with benchmark. To check that deductions for variances are pointed out and recovered from
 Suppliers bills.
 6.3        Checking of records for supply of Site mixed slurry (SMS) explosives as per statutory
 requirement and recording of actual supply, party wise Powder factor for Coal an d OB (For Powder
 factor calculation, total OB sh ould exclude loose un -blasted OB an d quantity of OB re -handled) is
 calculated separately and the same is signed by the authorized person, if any discrepancy report
 thereof.
 6.4        Report on com parison of Powder factor and Detonator factor with norms, previous month
 and previous years figures.
 6.5        Report on variance analysis of cost per CuM/Tonne of OB and coal respectively, in
 comparison with Budget showing details of volume variance and price variance.

 7 UTILISATION OF M ATERIALS FOR SUPPORT IN UNDERGROUN D M INES FOR S AFETY:
 7.1        Checking of records for receipt, issue &stock of support material.
 7.2        Checking of consum ption of all un derground support an d safety material e.g. timber, steel
 bolt, roof bolt, cement capsules etc. is vetted by the Safety department.

 8 OIL & LUBRIC ANTS (earlier POL):
 8.1        Checking of internal control regarding receipt, issue & stock of POL.
 8.2        Physical verification of quantity of die sel on test check basis in tankers as well as storage
 tanks and report thereof.
 8.3        Consumption of diesel per CuM of composite production in Open Cast Projects (excluding


                                                Page 15 of 50
production by Dragline) and comparison with CMPDIL norms for specific diesel consumption and
previous years figures, report on variance.
8.4       Consumption of diesel per working hour of the machine and comparison with previous
month and previous years figure and report thereof.
8.5       Report on consum ption of POL ­ volume and price variance.
8.6       Report on short supply of HS D an d recovery thereof.
8.7       Checking of records of Dip stick measurement of diesel tank before receipt and after
decantation from diesel tanker.
8.8       To check all credit notes / discount given by I OCL as per the agreement between CIL &
IOCL.


9 POW ER:
9.1       Report on consum ption of Power per unit of production an d com parison with previous
month and previous years.
9.2       Report on contract demand (C D) of power and actual contract demand utilized.
9.3       Report on penalty imposed due to:
  a)    Delay in payment.
  b)      Low Power Factor
  c)      Recorded Maximum Demand
  d)      Any other
9.4       Report on variance analysis of power cost per CuM/tonne as compared to budget and
previous year.
9.5       Report on concessional tariff for domestic consumption is availed of, in case commercial
tariff to be reported.
9.6       Checking of records that the separate Meters are installed for industrial consumption an d
domestic consumption, if not report thereof.
9.6       Report on Energy Audit and its compliance.
9.7       Report on Power Factor an d comparison with previous month and previous year.
10        FINANCE:
10.1      Utilisation of Fun d:
a) Checking of budgetary control for indenting, release and utilization of fun ds un der major heads.
b) Checking of the funds utilization immediately on receipt for the purpose indented for, any
deviation to report.
c) Checking of cash receipts an d payments and reasons as why in cash and not through digital
mode/bank.
d) Checking of unsettled amount returned by bank on failure of RTGS/N EFT.


                                               Page 16 of 50
e) Checking of payment made through account payee cheque or demand draft, whether approval
from com petent authority is taken.
f) Checking of bank reconciliation statement and report if any unreconciled amount lying
unadjusted for more than one month.
g) Payments to contractors an d suppliers are made in serial/chronological order, any deviation
report thereof.
h)To report on whether CLTD (Corporate Linked Term Deposit) facility with a reasonable threshold
limit has been obtained against current account of the unit/Area with the concerned bank?
10.2       Bank and cash book is signed by the authorized signatory on daily basis, if not report
thereof.
10.3       Checking of balances of subsidiary ledgers with General ledger and any variance report
thereof.
10.4       To report on the age -wise break-up of all a dvances & receivables appearing in balance -
sheet on quarterly basis. Also to re port on the balances lying for more than 5 years and the
possibilities of their being written back/written off.
10.5       Checking of bills as per Supply/Work Order/Agreement/Manual on test check basis and
if any deviation report thereof.
10.6       To report on overdue payments to MSME. To report whethe r payment is made to MSME
suppliers/contractors within 45 days of acceptance of their bills.
10.7       Verification of Investment of Surplus Fun d:
(a)        Whether CIL Deposit Policy, as approved by the Board is being followed?
(b)        Opportunity of Investment of surplus fun d in be st possible alternatives.
(c)        Timely realization of Investments and credit to proper accounts.
(d)        Reinvestment after maturity of the Term deposits/Mutual fun ds in time.
(e)        Timely investment of surplus fun d and report if any idle fun d not invested.
(f)        Checking of Fixed De posits physically and with the banks statements and interest
accrued certificates are collected quarterly and accounted for, if not report thereof.
10.8       Checking of Bank draft/Bankers Cheque, received towards EMD an d Security Deposits
from contractors/ suppliers are accounted for an d deposited timely in the bank, if not report
thereof.
10.9       Bank Guarantee: Checking for-
(a)        To check the procedure regarding acceptance, custody an d disposal of bank guarantee
etc. in accordance to the provision laid down un der Finance ma nuals and time to time guidelines
issued by the management.
(b)        Whether Bank Guarantee submitted against security deposit and performance guarantee
has sufficient coverage for period of work?



                                               Page 17 of 50
(c)       Whether Bank Guarantee has been properly recorded and realized in ca se of default?
(d)       Whether genuineness of Bank Guarantee has been confirmed as per prevailing rules by
the issuing bank and verified on SFMS platform?
10.10     Checking of payment vouchers on test check basis.
10.11     Gratuity claims amount received from LIC as per One Year Re newable Group Term
Assurance (OYRGTA) policy an d checking thereof:
(a)       Whether claim for reimbursement has been lodged with LIC in time following the month of
payment of gratuity to employees, if not report thereof?
(b)       Whether reimbursement from LIC has been received timely and paid to the authorized
nominee of deceased employee, if not report thereof.
10.12     Checking of legal bills whether paid as per schedule of legal fee to the empanelled
advocates.
10.13     Report on Trade Paya bles outstanding more than 3 months.
10.14     To verify that supply order /work order are signed by the authorized officer empowered
and verified with the specimen signature of these official.
10.15     To check that the cashier is authorized to operate cash has been appropriately covered by
Fidelity Guarantee Insurance and adequate Insurance for cash-in-safe & cash-in-transit is taken.
10.16     To check that the amount of la ptop/ta b value (WDV) with perquisite tax has been realized
from the executives on superannuation/ resignation/ termination.
Log books of vehicles:
(a)       To check that the log books are maintained properly giving relevant details such as the
places travelled, purpose, meter readings, fuel filling etc. signed by the driver and the Authorized
person.
(b)       To check that the recoveries have been made for use of vehicles for pers onal use.
10.17    Air Tickets:
(a)      Whether booking in respect of Air tickets is done on the basis of requisition slip duly
approved by the competent authority?
(b)      Whether the bill of service provider (Traveler Agent) is passed as per terms & Condition of
the contracts?
10.18    Booking of Hotel Accommodation:
(a)      Whether booking of accommodation is done in the empaneled Hotel and as per
entitlement of the person concerned?
(b)      Whether the bill of Hotel is passed as per terms & Conditions of the contracts?
10.19    Vehicle:
(a) Whether hiring of vehicle is done as per terms & Conditions of the Contract?
(b) Whether bill of service provider is passed as per terms & Con ditions of the contracts?
(c) Whether insurance covered of the company owned vehicle is renewed in time?
10.20 Leased Properties:
(a) To check that the lease rent is recovered as per the agreement.


                                             Page 18 of 50
(b) To check that the revision of rent is done on due dates and in time as per the terms of the
agreement, if not to report.


11.         GST:

11.1 Registration:
1.Whether registration is obtained in every state from where supply is made?
2.Whether registration for ISD has been obtained for transfer of ITC in respect of goods an d
services?
3.Whether additional places of business within a state are added in the registration certificate?

11.2 Invoice verification:
1.Whether invoice has all the prescribed particulars as required un der Section 31 and rules made
there under?
2.Whether bill of supply is issued as per requirement of GST Law?
3.Whether the time limit for issue of invoice has been adhered to?
4.Whether "Self Invoice" is raised in case of RCM transactions?
5.Whether Credit note/ Debit notes are issued an d incorporated in GSTR as per the provisions of
the GST law?
6.Whether document as per books of accounts match with Returns?

11.3 GST Return & Payment:
1.Whether returns as applicable have been filed within the due dates?
2.In case of late filing whether late fees have been paid?
3.Whether supply as per books of account matches with supply as per GSTR?
4.Whether change in tax rates has been dealt with correctly?
5.Whether tax has been paid within the prescribed due dates?
6.In case of late payments whether interest has been paid?

11.4 Input Tax Credit:
1.Whether input tax credit is taken based on eligible documents having all the prescribed
particulars as per the Rules made in this regard?
2.Whether the goods / services on which ITC is claimed have been received by the entity before
taking ITC?
3.Any Reversal of input tax credit for the goods sent for job work?
4.Whether      Input   tax     credit   is reversed against the   receipt   of Credit Note?
5.Whether wrong ITC availed has been reversed along with interest?
6.Whether the vendors (other than RCM) have been paid within 180 days from the date of invoice?

11.5 TDS on GST:
1.Whether TDS on GST de ducted as per GST Law an d timely payment of TDS?

                                              Page 19 of 50
2.Whether TDS certificates issued timely?

11.6 RCM:
1.Whether Reverse Charge has been paid on all inward supplies notified u/s. 9(3) of the CGST Act
and u/s. 5(3) of the IGST Act?
2.Whether ITC has been availed of the tax paid un der reverse charge?

11.7 Misc:
1.Whether books      of accounts are maintained     at   each   place     of business?
2.Whether the Register E-way Bill/Delivery challan is maintained as per the law?
3.Are there any departmental inspection proceedings for Transitional Credits or any othe r demands
created?
4.Any adverse remarks by Statutory Auditor has been raised and whether those are rectified?

12.         PURCHASES:
a. Checking of Purchase orders placed are as per Purchase Manual and com petent approval is taken
and necessary formalities as per manual are complied with, if any deviation to be reported.
b.Report on repeat Orders placed, are based on orders placed earlier with proper tendering and
other conditions governing the placement of Repeat Orders are complied with.
c. To check that no attempt has been made to split the tenders, to keep the value of the contract
within the delegated powers of the approving authority, if any report thereof.
d.Checking of non-availability certificate and consum ption pattern of last 3 years has been
obtained from both Regional & Central Stores before raising indent for any material.
e. Report on delay in placement of supply orders from the date of a pproval of indent beyon d
prescribed time.
f. To check that the material is received within the stipulated time; if not, whether liquidated
damages have been imposed, if not report thereof.
g. Report on maintenance of records such as Tender Register, TCR files, Supply orders, Bill Passing
Register, etc. are in order, in case of any discrepancy report thereof.
h.To check that the local purchases are made within the powers delegated to the approving
authority. In case of local purchase, whether the materials purchased have been consumed
immediately, if not report thereof?
i. To check if any advance payment is made to suppliers is as per the NIT/Order and has been
adjusted as per the terms of advance payment. Any outstanding for a long time; list of such
advances (separately for P&M an d S pares) with age and reason for non -a djustment is to be
reported.
j. Checking of Modules Orders placed for rehabilitation of equipment/HEMM. Also to check that
the spares/ materials received are utilized for particular rehabilitation of equipment/HEMM, any
discrepancy to report.


                                              Page 20 of 50
k.     Checking of procurement of centralized items at Area/ Project/ HQ is done with proper
justification and with the approval of com petent authority.
l.     Checking of deletion or insertion of terms and con ditions in the standard NIT, whether proper
justification has been recorded an d com petent approval has been obtained.
m. To check that the e -tenders are floated and reverse mechanism has been followed.

13.         STORES
a. To check & verify proper maintenance of records such as Day Book, Stores Receipts, Issue
Voucher, Kardex posting, Store Return Voucher, etc. To check that the entries are made on daily
basis in compute r system. In case OMMS (On line Materials Management System), all entries are
made immediately to check and report.
b.Physical verification of certain items of stores at random and basis of sample size and report the
exception, if any.
c. Checking of claims lodged for receipt of short material and damaged material and whether
settled, pending such cases to be reported.
d.a) Checking of non-moving and slow-moving store items and to check the details there of has
been circulated to other Areas and Headquarters for gainful use at other places.
     b) Material purchased on local purchase basis, and not consumed within one month is to be
reported and also to check that the items purchased frequently through "Local Purchase" are
covered in Material Budget.
e. Checking of records maintained for scrap& disposal thereof.
f. Checking of relevant records of Charge -off Stores &spares lying for a period exceeding 3 months
and to check that the charge off stores is also recorded through OMMS (Online Material
Management System). To check the records for transfer back of charge -off stores lying for more
than 30 days to Regional Stores.

g. Checking of reconciliation of materials issued from the Main Stores tally with that received in the
Charge -off Stores.
h.Checking of reconciliation between Price Stores Ledger and Financial Ledger is done timely and
accounted for quarterly/ yearly.
i. To check that the obsolete and non-moving stores & spares have been identified and accounted
for.
j. To certify the list of obsolete, non-moving stores & spares which are not in use for last 5 years
and to report on the steps taken by the company to dispose -off such obsolete and non-moving
stores and spares.
k.In case of any agreement of buy-back of stores, the Auditor has to certify whether the process has
been followed.
l. Checking of errors in Store ledger and report thereon.
m.          Checking of inspection reports on test check basis of material and the same is in


                                              Page 21 of 50
conformity with provision in the Supply Order. Reporting on List of those material lying in stores
waiting inspection for a period exceeding one month.
n.Checking of records of use d tyres, battery an d other recoverable items against the issue of new
item.
o. Checking of records of warranty spare parts/ spare parts provided with equipment is kept
separately and proper record is maintained for the same.
p.To check that all material received in stores is having material code.
q. Checking of records of groun ded/surveyed off vehicles that the De -registration of the same has
been obtained from the RTO.


14.      SERVICE C ONTRACTS AW ARDED BY C ONTRACT M ANAGEM ENT CELL OR BY ANY
OTHER DEPARTM ENT:
This covers coal transport, san d transport, hiring of pay loa ders for loading of coal, hiring of
HEMM, surface miner, drills, continuous miner, high wall for over burden removal and coal
production, Mine Developer & Operator (MDO) contracts, hiring of vehicles, Turnkey basis
contracts etc.
14.1 Coal Transport:
(a)      To check that the CMC manual is complied with in finalizing relevant tenders of coal
transportation awarde d by Contract Management Cell or by any other department.
(b)      Checking of route map of coal transportation, which is certified by I ED as shortest
possible route of transportation.
(c)      Checking of work order executed is as per the terms of contract and deviation of
time/quantity has been approved by the compete nt authority and payment released is as per terms
of contract/ work order.
(d)      Checking of monthly target      quantity for transport an d penalty for short fall, if any is
recovered from the contractor as per the work order. In case waiver of penalty, the same sh ould
have competent approval.
(e)      Surprise checks are to be carried out during weighment of trucks/ tippers/dum pers and
discrepancy, if any, to be reported.
(f)      Checking of monthly reconciliation of coal transported with Dispatches + Closing Stock ­
Opening Stock and also to check re -handled quantity, if any.
(g)      To check the quantity re -handled and a pproval of competent authority.
(h)      Checking of records maintained at weighbridge e.g. Gate Pass, Bill, MB, Bill Passing
Register etc. on test check basis.
(i) Checking of bills of transporters and it is as per the terms and con ditions of the work order and
based on the certificate of the concerned authority regarding satisfactory performance and to check



                                             Page 22 of 50
that all recoveries such as Security Deposit, Income Tax etc., have been made correctly.
(j) Checking of escalation/de -escalation is calculated correctly and the same is adjusted/ paid to the
transporter, any delay more than one month to be reported.
(k)      Checking of reconciliation of coal transported from quarry and coal received at dispat ch
point.
(l) Checking of records of coal transportation done by both de partmental and contractual means
from the same mines and to check that separate identification of the quantity transported by both
the means has been made.
(m)      To check that the GPS (Global Positioning System) installed in all the Trucks/ HEMMs
deployed in the mine is operating effectively and monitored, if not report thereof.
14.2     Sand Transport:
a) To check that the CMC manual is complied with in finalizing relevant tenders of sand
transportation awarde d by Contract Management Cell or by any other department.
b) To check the total quantity transported is within the awarded quantity and prior
approval of com petent authority has been obtained for any excess quantity and
approval of com petent authority has been obtained for excess in the value of work on
account of price escalation.
c) Checking of reconciliation statement (reconciliation of receipt quantity and dispatch
quantity)(Opening stock of sand+ Sand transported from River / Stock to Bunker ­ Sand stowed) =
Closing stock of sand.
d) Checking of book stock with physical stock of sand an d any difference to report.
e) Checking of records of Sand stowing and also to check that the claim for sand stowing has been
made regularly.
f) Checking of sand stowing ratio and com parison with norms and variance if any to report.
g) Checking of Shortest route for sand transportation has been identified by a Committee and
approved by the competent authority.
14.3     Hiring of HEMM for OB Removal:
(a)      To check that the CMC manual is complied with in finalizing relevant tenders of OB
Removal awarded by Contract Management Cell or by any other department.
(b)      To check that the estimate is supported with shortest lead certificate, non -availability of
departmental capacity.
(c)      To check and report on contracts of time and quantity extension granted and reasons
thereof and to report.
(d)      Whether there is any splitting of contract in terms of quantity/time to accommodate the
tender value within specific delegation of power?
(e)      Whether Personnel Dept. certifie d regarding fulfilling requirement of labor laws specifically



                                             Page 23 of 50
for correct wages and PF/CMPF?
(f)      No. of contracts extended for time / quantity and whether such extensions is supported
with proper justifications.
(g)      Whether payment of escalation/de -escalation has been properly calculated?
(h)      Checking of initial and final measurement document of contractual OB removal.
(i) Reconciliation with survey report and OBR reported.
(j) Whether Uniform practice has been followed for acceptance / rejection of offers including the time
period for such decision on test check basis?
(k)      OBR removed during the          year     with   bill   paid an d reconciliation   with   physical
measurement.
(l) Checking of the closing advance stripping with Surveyors Report.
(m)      Verification of OBR measurement and accounting. Verifica tion of initial profile and final
profile with the billed quantity for payment.
(n)      Whether Hindrance Register is maintained an d updated for every Coal, Sand transport
and OB Removal contracts.
14.4     Other Contracts:
To check that the CMC manual is complied with in finalizing the relevant tenders and to check all
other details while making the payment.


15       CIVIL C ONTRACT W ORKS (CAPITAL & REVENUE)
It covers all construction works under capital head, revenue works and turnkey contracts etc.
15.1 To check that the Civil Engineering Manual / Contract Management Manual /Schedule of
Rates are complied with in finalizing the relevant tenders.
15.2     To check that no attempt has been made to split the tenders to keep the value of the
contract within the delegated powers of the approving authority.
15.3     To check that the works awarded have been completed within the scheduled time, if not to
check that the competent approval is taken for time extension.
15.4     To check that there is no failure on part of the management, due to which the work could
not be completed in time resulting in escalation of value of contract.
15.5     To check that for com pleted works, final bills have been prepared in time and accounted
for. To check that the details of running and final bills are recorded in the Measurement Book (MB)
and any material issued to the contractors has been recovered. Test check of MB with bills. To
report where final bills are pending for com pleted work for more than 3 months. To report for
capital works in progress after the completion of work period as per contract.
15.6     To check and report for a bnormal variations in quantities as per estimates of awarded
work.



                                                Page 24 of 50
 15.7      To check that the advances, if any paid against contract are adjusted as per the terms of
 the contract and in case interest bearing, correct interest h as been recovered from the contractor.
 15.8      To check that the payments have been made as per the terms and con ditions of the work
 order and on the basis of satisfactory performance as certified by the concerned authority; whether
 recoveries towards security deposit, secured advance, income tax, etc. have been made correctly.


16. ESTABLISHM ENT
16.1 Man power:
        (a) To check the reconciliation of manpower on roll an d manpower paid as per Pay-sheet.
        (b) Checking of fixation of basic pay on promotion, revision of basic pay in disciplinary action,
   subsistence allowance and other allowances sanctioned time to time and pay fixation of new
   recruitments etc.
        (c) To check the details and documents submitted by the new recruitments executives/ non -
   executives.
        (d) To check the complete records for employment given to land oustees and suitable
   compensation paid as per the statutory requirement e.g. CIL R&R Policy/State Level Policy.
        (e) To check that on death and in medical unfit cases whether competent approval is taken
   before giving the employment.
        (f) To check the records of vacancies to be filled up by promotion of existing employees and
   report thereof.
        (g) To check the records of transferred employees as transferred and n ot released and report
   thereof.
        (h) To check the cases of retirement on medical groun d an d female VRS and to check that the
   competent approval is obtained.
16.2 Form B:
        (a) Whether photogra phs of the employees have not been affixed an d attested?
        (b) Whether Form B has been signed by the employees and countersigned by the authorized
   person?
        (c) Whether date of birth and all other columns have been filled up?
        (d) Whether there are any discrepancies in the date of birth of the employees with regard to
   Service Records?
        (e) Whether any case is pending for age or qualification dispute
    16.3 Attendance (Form C and D):
       (a) To check that the Bio-Metric attendance system is in operation and pay sheets are
   prepared after taking attendance directly through system and without manual interference, if any
   to report. If manual to check that attendance is marked daily and cross total ed are made in the
   attendance register. The attendance register is signed daily by the authorized person.



                                               Page 25 of 50
       (b) In case of Un derground, cross-check the attendance with Cap Lamp Register.
16.4 Leave Records (Form G an d H):
       (a) To check that the leave records are maintained in the statutory format.
       (b) To check that the balances of leave are correctly carried forward an d a dde d for the current
   year as per eligibility, leave availed are correctly recorded.
       (c) Leave availed is supported by a pplications and duly sanctioned.
       (d) To check that the leave register is updated an d corrected regularly and not once a month.
       (e) To check the instances where leave has been availed but having no leave balance.
       (f) To check the instances where leave has been availed but attendance is also marked an d
   paid accordingly.
       (g) To check that balance leave given in Last Pay Certificate is as per leave record.
       (h) Quarterly Reconciliation should be done between leave balance mentioned in Pay slip and
   leave balance appeared in Leave records, any variance to report.
      16.5        Overtime and rest day workings records (Form I):
       (a) To check that proper record for overtime is maintained, specifying the engagement of
   hours with reasons.
       (b) To check that the OT sanctioned is within the delegated powers.
       (c) To check that the OT/Rest Day wages paid have been duly sanctioned.
       (d) To check the instances where the employee was on leave / rest day but OT is paid.
       (e) To check the instances where employees have been engaged on over time continuously for
   more than eight hours.
       (f) To check that compensatory rest has been availed in all cases, if not to report.
       (g) To report for Variance in cost of normal overtime and Sun day / Holiday workings with
   Budget an d previous year in terms of hours/days an d financial.
       (h) To Report on Sun day de ployment vs Normal deployment.
      16.6        L.T.C. Records:
       To check that the LTC/LLTC register is maintained properly giving all the relevant information
   like details of the employee, members of his family, age, address (updated time to time on receipt
   of a pplications from the employees for any changes), detai ls of previous LTC availed, date &
   amount of a dvance taken and subsequent adjustment thereof etc. and to check the rates of fare
   are as per applicable rates of mode of travels.
      16.7        Salary & Wages Audit:
       (a) To check that the provisions of NCWA in case of non-executives and in case of executives -
   Executive Pay Revision are followed in preparation and payment of wages and salary.
       (b) To report whether payment of salary & wages is made only through Bio-metric attendance
   system.



                                                Page 26 of 50
   (c) System & transaction audit to be carried out on sample basis in respect of each element of
salary & wages including arrear salary & wages and PRP paid an d to report weaknesses and
deficiencies in internal control.
   (d) Checking of all deduction, recoveries and a djustments are made and reconciled e.g.
CMPF, Family Pension and 7% Pension, HBA, conveyance loan etc.
   (e) Checking of pay fixation arising out of promotion/up-gra dation, annual increment and
stagnation increment and on implementation of NCWA an d Executive Pay Revision as and when
due. Also to check arrears arising out of such fixation/ revision.
   (f) To confirm that discontinuation of billing of departed employees is made in the same
month and no payment through system is generated thereafter.
   (g) To check fall back wages, whether the competent approval has been obtained.
   (h) To check that all the terminal benefits have been settled an d paid to superannuated/
resigned employees, any pending case to report.
   (i) Checking of arrear salary & wages and arrear PRP bills before making final payments to
separated employees.
   (j) Whether a Memo of Difference (reason for head wise difference of salary with reference to
previous month) is made by the system department and checked by the finance dept.
   (k) Whether employees have necessary approval for joining after long absenteeism, if not to
report.
   (l) Checking of register for recovery of rent and reporting on outstan ding amount.
   (m) To check the records relating to occupancy of quarters and rent is recovered as per rule of
the company.
   (n) Unauthorized occupancy of com pany accommodation, if any, should be reported.
   (o) Reconciling HRA payment against respective sanction order.
   16.8        Advances to Em ployees:
   (a) To check that the advances are adjusted an d in case of recovery the same is regularly
done, no second a dvance unless first one is adjusted.
   (b) To check the sche dules of advances under various heads duly tallied with the balances of
General Ledger.
   (c) To check that the Debit Memos for the Transfer TA and other advances for the transferred
employees have been issued timely to the place of transfer and recorded in the LPC.
   (d) List of advances (other than House Building and Conveyance advance) outstanding for
more than three months, more than 6 months, more than 1 year, more than 2 years with Date of
advance & reason for non-a djustment.
   (e) To check that the interest on House Building and Conveyance advances has been
calculated correctly and recovered regularly.



                                           Page 27 of 50
      16.9        Other Payments:
       (a) Checking of other expenditures like TA, Transfer TA, LTC, Medical reimbursement,
   medical reimbursement to retired employees under CPRMS etc. has been made as per the
   relevant circulars of the company and if any irregularities to be reported.
       (b) To check the Performance Related pay (PRP) an d production incentive etc. is calculated
   correctly.
16.10 Outside Repairs:
       (a) To check that major outside repair has been resorted after obtaining "No objection
       Certificate" from concerned Regional Workshop/Central workshop.
       (b) To check that the relevant manuals are complied with for awarding such works.
       (c) To check that the proper records is maintained for all such works e.g. det ails of work
    order, bill passing details, deductions etc.
       (d) To check that the equipment/ machines sends for repair have been received in time and
    to report if there is any delay for more than three months.
16.11 Statutory Payments & Returns:
       (a) Verification of receipts/acknowledgements for the payment of statutory dues like Income
   tax, Sales tax, Royalty on coal an d san d, Stowing, Roa d tax, Insurance etc.
       (b) To check that the statutory dues have been deposited in time and reconciliation of
   collections/receipts as the case may be and payments of statutory levies and if any penalty due to
   late payment to report.
       (c) To check that all Statutory Returns have been filed in time, in case not complied to report.
       (d) To check that all statutory deduction ma de from the bills of contractors are deposited to
   the appropriate authorities within the time schedule like PF, ESI etc.
       (e) To prepare a status of old pending cases at various le vels and report on action being taken
   /necessary including suggestion on how to ensure that litigation is reduced.
16.12 Corporate Social Responsibilities Expenses (CSR):
       (a) To check the activity-wise budget and actual expenditure under Corporate Social
       Responsibilities (CSR).
       (b) To check that works un dertaken under CSR are within the allocated budget an d also as
   per CSR policy of Coal In dia Limited.
       (c) To check and report unspent amount and also to check that the works undertaken by
   outside agencies, utilization certificates are received in time.
       (d) To verify the CSR spent including physical verification of outcome a s well as sample cases
   to verify the genuineness of expenditure incurred and assets created. Also whether conditions
   laid are being followed or need revision.
       (e) Report age analysis and reasons for time over run and action required.



                                                Page 28 of 50
16.13 Mine Closure Plan Expenditure (MCP):
      (a) To check the progressive mine closure expenses are identified and charged to a se parate
   head of account.
      (b) To check that the amount is withdrawn from Escrow account at the interval of every five
   years for the expenditure incurred for mine closure.
      (c) To check that proper record is maintained for mine closure expenses.

    17      SYSTEM
         (a) To check that A.M.C,,s exists to protect the hardware and software installed.
         (b) To check that all software installed is fully utilized, if not to report.
         (c) To check that the company is having approved IT strategy/plan.
         (d) To check the existing software in the operation are fully utilized e.g. financial accounting,
    sales accounting, personal information, pay roll, material/inventory management etc.
         (e) To check the areas, where the inbuilt check exists in the computer environment and
    needs to be reviewed.
         (f) To check the document retention policy to eliminate the problem of extracting information
    from com puter file due to lack of back up of past records, exists or not.
         (g) To check that a syste m of proper documentation of software program exists.
         (h) To check that corrections made in master data are done by authorized person and
    complete record centrally in computer department is being kept and having the approval of head
    of System department.
         (i) To check that the backup of data is being taken regularly and kept as per the policy of the
    company an d carried out by the designated and auth orized employees.
         (j) Whether there is a system of identifying and disposal of e -waste?
         (k) To check the verification of creation of master records of employees transferred in /newly
    joined during the month & elimination of master records of employees, who have left the
    organization during the month on account of transfer, retirement, resignation, death, dismissal,
    removal, etc., if not to report.
         (l) To check the anti -virus software is installed and working effectively.
         (m)        To check schedule of authority (SOA) and ensure that the delegated has sufficient
    control for discharging his responsibilities.
         (n) To check and ensure that hardware access control have fully been implemented so that
    remote user has proper authority to see, create & delete data and confidential/ payment related
    data, if shared, are encrypted or not, if not to report.
         (o) To check and re port the existence of software password c ontrol along with periodic
    modification are in operation.
         (p) To check the existence of disaster recovery and business continuity plan along with



                                                  Page 29 of 50
 periodic testing and review of the proce dure.
      (q) To check the existence of software base control to block the access immediately after
 cessation of service like superannuation/ dismissal/ death/ termination etc.

 18     FIXED ASSETS


    (a) Checking of Fixed Assets Register having all required details e.g. Quantity, unit, Location,
Identification Number, Original Cost, Date of Capita lization, Life of the Assets, Rate of
Depreciation, Depreciation for the year, Additions, Deletions, Accumulated Depreciation, WDV
etc.
    (b) To check that the Physical verification of fixed assets has been carried by the management
during the year and discrepancies, if any observed have been accounted for.
    (c) Verification of title deeds of Lan ds. Whether tittle deeds of immovable properties are held
in the name of Com pany?
    (d) To check the reconciliation of balance as per Fixed Assets Register and General Ledger
and report for any difference.


  19      HOSPITAL / DISPENSARY
      (a) To check the receipt of the medicines and issue is recorded properly.
      (b) Physical verification of medicines and other related material on test check basis with a
 sample size and to tally with the book stock, any deviation to report.
      (c) To check the record of expiry medicines with reference to date of purchase, if purchase is
 within three months, to report, also to check the disposal thereof with the approval.
      (d) To check the equipment purchased an d not installed wi thin three months.
      (e) To check and to re port on the brake down of major equipment and that Annual
 Maintenance Contract exists or not.


 20     CENTRAL/REGIONAL W ORK S HOPS


        (a)     To check the records of shop wise, for expenditure incurred during the month/
   quarter.
        (b)     To che ck the jobs un dertaken and com pleted within scheduled time if delay for
   more than two months to report.
        (c)     To check that the work undertaken by the workshop after obtaining formal work
   order.
        (d)     To check that the material received and used for repairing of the m achine /
   equipment is accounted for.
        (e)     Physical verification of stores and spares on test check basis to reconcile with the
   book stock, any deviation to report.
        (f)     To check that the proper record is maintained for surveyed off equipment at


                                            Page 30 of 50
       workshop with the disposal.

     21      COAL M INE PLANNING &DESIGN INSTITUTE LIM ITED


21.1 Sales Billing & Realization:
       (a) Checking of records of jobs un dertaken by CMPDI as the work orders received from
   subsidiary com panies of CIL and outsiders.
       (b) Checking of bills raised as per the estimate submitted / work order ­ Deviation if any to
   report.
       (c) Checking of customer ledgers any payment due for more than 3 months to report from the
   date of bill issued.
       (d) To check the records related to verification of Quantum of drilling block -wise and
   subsidiary-wise.
       (e) Periodical reconciliation with different subsidiary companies for settlement of disputed
   outstanding bills, if any.
       (f) To check the Variation if any, between actual numbers of Engineering Day (ED) booked
   vis-à-vis budgeted.
       (g) To check that the statutory payments are made in time and returns have been filed in
   time, delay if any to report, in case any penalty for delayed payment to report.
21.2 Business Development Division:
       (a) To examine the Tenders or quotations received in response to the Tender from outside
   parties other than Coal Companies.
       (b) Rates arrived at for a bove.
       (c) Deviation if any.
       (d) Examine standard % over the estimated expenditure as margin is added to arrive at rates.
21.3 Drilling Camp:
       (a) Maintenance of Vehicle log book.
       (b) Maintenance of drill machine log book.
       (c) Actual hours run during the shifts, breakdown hours an d machine maintenance hours.
       (d) Consumption of POL.
       (e) Machine -wise consumption of POL.
       (f) Actual consum ption of power, POL, stores vis-à-vis targeted consum ption as per a pproved
   budget.
21.4 Machine Utilization of Drilling Camps:
       (a) To check the actual machine utilization at drilling camps:
          i.       Actual shift hours
          ii.      Breakdown hours.



                                              Page 31 of 50
            iii.           % of breakdown hours to shift hours.
            iv.            Available hours.
             v.            Production hours.
            vi.            % of production hours to shift hours.
            vii.           % of n on-production hours to shift hours.
        viii.              Total utilization hours.
            ix.            % of utilization hours to shift hours.
             x.            Idle time hours.
            xi.            Break-up of idle hours.
       (b) Available capacity of meterage of individual drilling machine and utilization. Deviation if
   any.
       (c) Excess and shortfall of meterage drilled by in dividual machine.
21.5 C osting:
       (a) To check the cost arrived at for calculation of rate per meter.
       (b) Examine all expenditure incurred have been duly incorporated in the Cost Sheet.
       (c) Consumption rate of the items complied in the Cost sheet like Power , POL, Explosive,
   stores etc. and com pare with the consumption rates targeted in the approved annual budget.
       (d) Comparison of actual controlla ble expenditure vis-à-vis budgeted expenditure any
   deviation to report.
       (e) Examine the percentage added over the actual cost is correct or not.
       (f) Calculation of rates for Planning & Designing jobs.
       (g) Calculation of rate for drilling jobs.
       (h) Checking of different MIS reports regularly prepared.

               Central Internal Auditor of HQ
      (a)      To review, monitor and compile the internal audit reports of all the Areas.
      (b)      To prepare the overall Exception Reports considering all the Areas.
      (c)      To        arrange    for   making      necessary    presentation   to   the   Audit   Committee   of
  observation/findings based on risk assessment in consultation with GM/HOD (Internal Audit) of
  the company.


          Note: Any other matter, considered significant, may be inserted in the scope
of audit from time to time by the Management.


                   22.     Core Area in the Scope for Monthly Reporting:
                   SSI.NO.     as     per             Particular



                                                          Page 32 of 50
         I.NO.       above Scope
                 (             1.            Coal Production an d OB Removal
         a)
                 (             2.            Sales & Marketing
         b)
                 (             4.            Productivity,
          c)
                 (            5.1            Manpower
         d)
                 (            5.2            Machines (HEMM, CHP, SDL, LHD, CM, Surface Miners,
         e)                           High Wall Equipment, Power Support Longwal etc.)
                 (             6.            Explosives
         f)
                 (            10.            Finance
         g)
                 (           15.3.           Attendance ( Form C and D)
         h)
                 (           15.5.           Overtime and Rest Day Workings Records (Form I)
         i)
                 (           15.7.           Salary & Wages Audit
         j)
                 (           15.11.          Statutory Payments & Returns
         k)
                 (            18.            Hospital / Dispensary
         l)
                 (            19.            Central / Regional Work Shops
         m)
                 (            20.            Coal Mines Planning & Design Institute Limited (CMPDIL)
         n)
          The Monthly Reporting requirement will be on the basis of the core area mentioned in
point no. 22 above of the scope, however, the Quarterly Report will be based on the entire
Scope.

          Note: Any other matter, considered significant, may be inserted in the scope of
audit from time to time by the Management.



                                                 Page 33 of 50
                                                                                      Annexure - B

     TERM S OF REFERENCE OF INTERNAL AUDIT FOR CIL AND ITS SUBSIDIARIES .

The Institute of Chartered Accountants of India (ICAI) has issued Standards on Internal Audit
(SIA). The Internal Auditors shall follow these Standards to the extent applicable in the matter
of Planning, Audit Procedures (Sampling, Analytical Procedures etc.), Documentation and
Reporting. The Internal Auditor is expected to a pply his judgment to decide the appl icability of
these standards w.r.t. scope of work and re porting requirements.

   A)             AUDIT TE AM
   1)      A practicing Chartered Accountant or C ost Accountant or a Firm/LLP of Chartered
           Accountants/Cost     Accountants    registered   with    the   Institute   of   Chartered
           Accountants of India / Institute of Cost Accountants of India, appointed to con duct
           Internal Audit should depute audit team in the HQ/ Area/Units.
   2)      The Audit Team should consist of one qualified CA/CMA and three Inter CA (IPCC) /
           Inter CMA semi qualified assistants.
   3)      Normally the composition of audit team should n ot be changed. However, under
           certain circumstances beyond control of the Audit Firm, if the same needs to be
           changed in any manner, it may be done under intimation to CGM/GM of the Area
           and GM/HOD (Internal Audit) of Subsi diary / CIL (HQ) of the concerned Com pany
           (subject to verification of credentials of the new incumbent to be sent alongwith the
           intimation with photo proof of qualification, PAN card, Aa dhaar card and a brief
           profile). The audit team members should carry Photo I D issued by the Audit Firm
           duly attested by the CGM/GM of the Area or GM/HoD (Internal Audit) of Subsidiary
           / CIL (HQ) as a pplicable.
   4)      The Internal Audit Team should visit place of Audit i.e. HQ/Area/Units every month
           and con duct Audit at le ast 18 working days in a month and Partner/senior
           Chartered Accountant / Cost Accountant of at least 5 years post qualification
           experience is required to be present on at-least two working days in a month for
           guiding the team, discussion and finalization of report with the management. The
           attendance of the team members will be maintained by the HQ/Area/Unit.
   5)      Internal Auditor of CIL Delhi office will be appointed to con duct the annual audit of
           Delhi, Jaipur, Ahmedaba d, Lucknow & Chan digarh RSOs. Further, In ternal Auditor
           of CIL (HQ) will be appointed to con duct the annual audit of Chennai, Bangalore,
           Hyderaba d, Patna & Mumbai RS Os.



                                          Page 34 of 50
6)   The audit team for Regional Sales Office (RSO), will consist of 1 Qualified and 3
     Semi-qualified Chartered/Cost Accountant. The partner of the firm or a senior
     Chartered/Cost Accountant with minimum 5 years post qualification experience
     should visit once     to guide    the   audit team and hold discussion with the
     management. The Auditor would decide the number of days of audit to be
     conducted at RSO.
7)   The Audit team will conduct the audit as per Com pendium of Standards on Internal
     Audit issued by The Institute of Chartered Accountants of India an d in consultation
     with Internal Audit Department at HQ / concerned officials at Area/Unit. It i s
     important also to ensure that all aspects are reviewed from proprietary angle and all
     expenses, cost and revenue need to be examined from this angle. The policy
     decisions of the company and procedures adopted sh ould be reviewed and
     commented upon includi ng changes suggested. The internal controls, delegation of
     powers are to be regularly monitored for com pliance as well as appropriateness. The
     various management decisions adversely impacting profitability or wastages of
     resources are to be brought in the report.
8)   Confidential Report: The Internal Auditors are also advised to report all cases of
     revenue leakage, excessive or unreasonable expenses, misuse of powers, favours or
     disfavours having financial impact, fraud on the company or by the company,
     imprope r awarding of contracts, theft, unlawful or un professional activity or activity
     beyon d the ethical boun daries or any other aspects without any limitation of any
     kind where interest of the company or any stake holder is getting adversely affected.
     Such report will be dealt with in a confidential manner and actions will be initiated
     without any reference to the source. The secrecy in terms of Official Secret Act will
     be followe d by all concerned a bout such report an d will be shared only on need to
     know basis. A copy of the confidential Report will be sent to the Chairman, Audit
     committee of respective company as well as Chairman of the Audit Committee of
     Coal India Limited for being considered by the CIL Audit Committee.
9)   The number of Audit firms may vary according to the number of mines, Manpower,
     Production an d Dispatches of a particular Area/ Project as decided by the
     management.


B)         SCOPE OF W ORK
1)   The audit team will conduct audit concurrently on month to month basis,
     throughout the year, as per the Scope of work.
2)   The auditor should comment in respect of the following points:
     (i)     Systems & Transactions.

                                      Page 35 of 50
     (ii)    ,,Report of Exception on the 25 points, a pproved by CIL Board an d as
             modified from time to time. This do not limit the scope of Audit and full
             detailed audit will be undertaken to ensure efficiency, efficacy, effective
             internal control, risk management, plug leakage of revenue, check excessive
             expenditure, matters and actions beyon d powers or against the interest of
             the company.
     (iii)   Matters contained herein and as may be a dvised by the company from time
             to time.
     (iv)    Action Taken Report (ATR) on previous Audit Reports. In case any material
             issue is not getting addressed the internal Auditors shall interact with the
             CMD an d/or relevant Functional Directors and General Manager i n charge
             of the respective matter and to prepare their reports an d ATR accordingly.
             Comment and recommendations for improvement in the systems.
     (v)     Any other matter, which may be required during the course of audit besides
             as prescribed in terms of internal Audit standards of ICAI and un der
             Companies Act, 2013. with respect to Internal Audit.
3)   LEAD AU DITOR:

     (i)     The Company will appoint one of the firm working as internal auditor in a
             subsidiary as the lead firm who will be also performing the job of
             consolidating all audit reports including executive summary (excluding
             confidential report an d special report) for the company as a whole and will be
             paid an a dditional amount 50% of their monthly fees applicable for the year
             for such consoli dation. A quarterly as well as annual consolidation is to be
             made by the lead auditor for presentation to the respective Audit Committee.

     (ii)    Similarly, one internal auditor will be a ppointed from CIL (standalone) to
             work as lead auditor to consoli date the reports of CIL (stan dalone) month ly
             as well as consolidate all the consolidated reports of the Subsidiary
             companies with CIL (Standalone) on quarterly and annual basis for
             presentation to the CIL Audit Committee. They will be paid an additional
             remuneration equivalent to 50% of their monthly fee applicable for the year
             for such consolidation.

     (iii)   Lead Internal Auditor of CIL will also consolidate the annual reports of all
             ten RSOs which will be merged annually with the CIL (Standalone). They will
             be paid an a dditional remuneration equivalent to 50% of RS O annual audit
             fee applicable for the year, for such consolidation . The annual audit report


                                       Page 36 of 50
                which is to be presented in the CIL Audit Committee by Lead Internal
                Auditor of CIL would consist of consolidated annual report of all subsi diaries
                merged with CIL (standalone) including all RSOs.

C)          AUDIT REP ORT
1)      M onthly Report (All units except RSO's): The Audit teams shall discuss their
        observation and findings with the CGM/GM/AFM/Associate Finance at Area/Unit
        and in case of HQ with GM/HoD (Internal Audit) after completion of audit for the
        month before submission of their report. Current month as well as unresolved
        observation of the previous month/ period shall also be brought before the
        management. The audit team shall submit their monthly report to the Head of the
        Area/ Unit and in case of HQ, the report shall be submitted to GM/HoD (Internal
        Audit). Reports shall be submitted in two sets. Monthly report is to be submitted
        within fifteen days of the following month. A soft copy of all reports except
        confidential report shall always be provi ded.
2)      Quarterly Report:     The Auditor shall also submit quarterly report an d executive
        summary of all material points of unresolved observations/ findings with the
        managements replies/comments and the same shall be submi tted to the following
        within twenty-one days of closure of the quarter:
        (i) Head of the Area/ Unit.
        (ii) GM/HoD (Internal Audit) of respective Subsidiary Company.
        (iii) GM/HoD (Internal Audit) of Coal In dia Ltd (in soft copy only).

        Quarterly compiled Consolidated Internal Audit Report with action taken on last
        quarter report will be sent to the Chairman, Audit committee of respective
        subsidiary in July, October, January and April by lead auditor. The Executive
        summary of the same will be sent to the Chairman of the Audit Committee of Coal
        India Limited for considering in the Audit committee. A quarterly consolidated
        presentation of CIL as a whole will be made by CIL Lead Auditor before CIL Audit
        Committee.
        A meeting with the top management of the company and all the inter nal Auditors
        will be held to discuss a power point presentation to be made by the concerned
        Auditors including flow chart based presentation of the issues every 6 months
        unless the internal auditors request for an earlier meeting to discuss any important
        or serious issue. This PPT will form part of the executive summary.
3)      Annual Report: While submitting the report of last quarter of the financial year an
        annual compliance closure report consisting the unresolved observations/ findings
        for the previous three quarters shall also be submitted to the management as per

                                        Page 37 of 50
     above (Column no.2) and to be submitted within twenty-one days of closure of the
     financial year. A presentation to the Audit Committee is to be made in April by the
     Lead Auditor for the audit con ducted during the previous year by all the Internal
     auditors.
4)   Flash Report should be submitted by the Internal Auditor immediately on detection
     of   any    major   irregularity   in   the   course   of   audit,   to   CGM/GM   of   the
     Area/Unit/RSO/HQ. an d GM/HoD (Internal Audit) of Subsidiary/CIL.
5)   Special Report: In case of persistent non-compliance with standard Operating
     Procedures by the management or serious lapses coming to the knowledge of
     Internal Auditor, the firm should submit a special Report to CMD of the respective
     subsidiary com pany an d a copy to the Chairman, Coal India Ltd.
6)   Report on Fraud: Internal auditor is to be entrusted with the task and responsibility
     of ensuring identification of all material or minor frauds as well as large mate rial
     errors. The audit program should be so designed so that a clear focus on these
     aspects and proprietary aspects is given as per best of the ability of the Audit team.
     All such aspects are to be included in the confidential report to be submitted to
     Chairperson of the Audit Committee of the concerned com pany as well as to
     Chairman Audit Committee, Coal India Limited in a close cover marked as secret.
     The management will ensure the secrecy of such report an d source identification and
     will fully protect the reporting Auditors. This is as a sequel to the current scenario in
     the matter of reporting on frauds un der The Companies Act 2013 to strengthen the
     governance process.
7)   Reporting on Internal Financial Control (Including Operation Control): The
     Internal Auditor should indepen dently examine whether there exists a proper
     Internal Financial Control (IFC) system, Internal Operational Control system and
     whether the existing Financial Control and Operational Control are adequate and
     operating effectively and whether any further changes are required.
     The Internal Auditor should submit a certificate on adequacy an d effectiveness of
     Internal Financial Control (including operation control) along with Annual Report.

8)   All reports will include details of time spent by each person and partners for
     examining adequacy in future determination of fees. The attendance is not the key
     aspect. It is the deliverables quality which will be important for continuation of the
     assignment as the same can be withdrawn by the respective audit committee in case
     of inade quate quality after providing a chance of being heard. No official at any level
     will be permitted to impact the independence of the internal Audit. Any non -









                                        Page 38 of 50
           cooperation by any specific official or person can also be included in the confidential
           report an d where appropriate in the special report.
           Internal Audit Report should be signed by the partner of the Firm mentioning Name
           of the Partner, Membership No., an d Firm Registration No.

D)             AUDIT FEE
1) M onthly Fee: Monthly Audit fee will be 1,40,000/ - (One lakh forty thousan d) per team
      for the 1st year i.e. 2020-21. The fees will be increased by 5% each year elapsed on
      cumulative basis. Applicable Taxes will be paid extra.
2) Lead Auditor's Fee: The lead firm will be awarded a dditional fee of 50% of their
      monthly/(annually for RS O) fee for such cosolidation. Applicable Taxes will be paid
      extra.
3) RSO Au dit Fee: Audit fee amounting to 50,000/- plus a pplicable taxes is to be paid
      for the annual audit of each RSO for the 1st year i.e. 2020-21.             The fees will be
      increased by 5% each year elapsed on cumulative basis . Applicable Taxes will be paid
      extra.
      The fee structure of Internal Auditor is placed below in a tabular form:

     Sl.           Nature of Audit           Audit Fee for    Audit Fee for       Audit Fee for
 No.                                            2020-21       2021-22                2022-23

     1     Monthly Audit Fee.                Rs.1,40,000/-    Rs.1,47,000/-       Rs.1,54,350/-

     2     Monthly Lead Auditors Fee.        Rs.70,000/ -         Rs.73,500/ -     Rs.77,175/ -

     3     Annual Audit Fee for each         Rs.50,000/ -         Rs.52,500/-      Rs.55,125/-
           RSO.
     4      Annual Lead Auditor fee for      Rs. 25,000/-         Rs. 26,250/ -    Rs. 27,565/-
           RSO.                                                                    (rounde d off)
4) Travelling Allowance:
      Partner will be entitled for rail fare by AC 1 st class or Air Fare by economy class,
      Qualified Assistant by AC 2 nd Class and Semi -qualified assistant by AC 3 rd class on
      submission of proof of journey, for to an d fro journey un dertaken once every month and
      for RS O audit once every year. For this purpose, journey will be considered from the
      firms nearest office given in the profile to the place of audit. In case of journey by mode
      other than rail, TA will be limited to entitled class or actual fare, whichever is lower,
      subject to production of documentary evidence.
5) The Company will provide a good quality Boarding, Lodging and local transport facility
to the Audit Team and Partner.



                                           Page 39 of 50
6) PAYM ENT OF INTERN AL AUDIT FEE.
      The    bills   for    con ducting     internal    audit   and TA   bills   will    be    paid   on
      monthly/annually (for RSO) basis upon submission of Reports.
      The    paying        authority   in   case   of   Area/unit/RSO    will    be     Area    Finance
      Manager/Regional Sales Manager of respective Area/Project/RSO an d in case of
      Head Quarter, General Manager (Finance). The bill in duplicate, duly certified by the
      respective Area/unit/RSO and in case of head quarter GM/HoD (Internal Audit) in
      respect of receipt of reports an d attendance, shall be submitted for processing of the
      bill and payment.
E)          GENERAL TERM S AND C ONDITIONS.

1)    The Audit Firm must not sub-contract the work. Only partners of the firm or
      employees or qualified associates whose bio data is provi ded at least 7 days in
      advance can take up the audit. The firms will have to declare that they are not
      related in any manner whatsoever with any existing or past Audit firm or past an d
      present employee of Coal India or any of its subsidiaries or Directors or any person
      who is employed with Government of In dia. Past association upto last 3 years of
      personal or financial or any other association of any kind now or in last 3 years is
      prohibited. The         firms trying to approach          any person   connected with           the
      appointment directly or indirectly will be debarred as the selection will be based on
      15 minutes presentation by shortlisted firms before the Audit Committee about
      their proposed a pproach to audit an d a bout their special expertise and past
      achievements and their profile and credentials to be informally checked by C oal
      India special team.
2)    The audit team will work in strict confidence and will ensure that the information in
      respect of the operation of the Area/Unit is dealt in strict confidence and secrecy. A
      Certificate towards mai ntaining confidentiality is to be provi ded by each member of
      the Internal Audit team before commencement of Audit.
3)    The members of the audit team should be in employment of the firm or
      professionally engaged for specialized review, in a transparent contract (without
      financial terms disclosure) to be shared an d a pproved by the respective company
      based on special expertise or experience of such person.
4)    If progress/performance of the audit team is not satisfactory, the management
      reserves the right to terminate the appointment of the Firm with prior notice of one
      month.


                                            Page 40 of 50
5)   Dispute/difference, if any, shall be mutually settled with CGM/GM                of the
     Area/unit/RSO/HQ. If the dispute could not be settled at CGM/GM level, it will be
     forwarded to the CMD for decision, which will be final and binding to all concerned.
6)   The Internal Auditor of the Area must visit the mines in the Area, at least one mine
     in a month. The company officials will fully facilitate the visit.
7)   GM/HoD (Internal Audit) of the company shall convene a mee ting, in every quarter,
     of all Internal Auditors of the com pany to discuss the Audit Report an d its
     compliance.
8)   The appointment of the Audit Firm will be for the year 2020-21 and may be
     considered for renewal in the subsequent years 2021-22 an d 2022-23 based on
     satisfactory performance of the Firm. In case of renewal of the appointment in
     subsequent year the present place of audit of Area/ Unit may be changed except in
     case, where the unit is situated in a place where it is not feasible due to place
     constraint.
9)   The Internal Audit Assignment will be terminated and the audit firm will also not be
     considered for renewal of a ppointment for Internal Audit in CIL and its subsi diaries,
     in the following cases:
      (a)   If the firm obtains the appointment on the basis of false information/false
            statement.

      (b)   If the firm does not take up audit in terms of a ppointment letter within one
            month.

      (c)   If the firm does not submit the Audit Report, com plete in all respects, as per
            terms of a ppointment within the stipulated time.

      (d)   If performance of the firm is not foun d satisfactory.

      (e)   If any fraud / embezzlement is detected subsequently an d n ot reported by
            Internal Auditor.

      (f)   If a firm is appointed as an Internal Auditor in CIL or any of its subsidiaries,
            neither the firm nor any other firm or partners related in any manner will be
            appointed as Internal Auditor in any other company in the CIL group.

      (g)   The firm has to maintain the confidentiality requirement in terms of
            professional code of con duct an d they shall not a ppoint/utilize the services of
            those who are not employee/partner/director of the firm.




                                     Page 41 of 50
Note 1:   The criteria for short listing will be confidential as these are more of
          professional judgment based on several parameters as may be decided in
          consultation with the Audit committee and cannot be questioned by any
          person.

Note 2:   The term "firm" will also include a proprietary firm and will also have the
          meaning as assigned to it in the Indian Partnership Act, 1932 an d a
          partnership as defined in the Limited Liability Partnership Act, 2008 with a
          minimum experience of at least 10 years with having adequate qualified
          partners and full time qualified employees and Article trainees / semi
          qualified employees (a self- certified profile will be provi ded by all firms clearly
          indicating their manpower, office infrastructure, software, hardware and
          other resources. The experience details including any specialized expertise
          may also please be provi ded as certified by the main partner of the firm who
          should be available at the time of presentation and who will undertake to
          ensure supervision of the quality of delivery of the assignment throughout the
          audit. No existing firm of internal auditors or any one related to them in any
          manner can be appointed.

Note 3:   CCL reserves the right to check the details and to ask for supporting evidence
          at any time.

Note 4:   Disqualification of Auditor as per section 141(3) of the Companies Act 2013
          will be applicable.

Note 5:       Any disputes with regard to a ppointment will be settled within the
          Jurisdiction of Ranchi only.




                                    Page 42 of 50
                                                                                      Annexure - C

                                       APPLICATION FORM AT

      SI No.                                 Particulars                                 Details
        1.     Name of the Firm with Registration no.
               Registration No. an d date of Registration of the firm
        2.     Registered Office Address & date of establishment
        3.     Branch Office Address & date of establishment
        4.     Contact No. of the Partner
        5.     Fax Num ber
        6.     Email address & Website

        7.     Name, Membership No. and date of Joining of existing partner with
               the Firm having the longest association.
               Ref : Selection criteria: SI No. 1
        8.     Name and Membership N o. of the full time partners and full time
               qualified persons having more than 5 years experience in practice
               in the firm whether ACA/ ACMA, FCA/FCMA as on 01.04.2019.
               Ref : Selection criteria: SI No. 2(A)(i)
        9.     Name and Membership N o. of the full time partners and full time
               qualified persons having more than 5 years experience in practice
               in the firm as on 01.04.2019 having DISA/CISA.
                Ref : Selection criteria: SI No. 2(A)(ii)
       10.     Name, Membership No. an d joining date of the full time Partners/
               full time qualified persons with more than 5 years experience in
               practice with the same firm as on 01.04.2019.
               Ref : Selection criteria: SI No. 2(B)
        11     Name, Membership No. an d joining date of full time qualified
               assistants who is an ACA/ACMA having experience of 5 years or
               less and is working with the firm as on 01.04.2019.
               Ref : Selection criteria: SI No. 3
       12.     Name and date of joining of semi -qualified assistants (Inter Cost/
               Inter Chartered - IPCC - both group) & is working full time with the
               firm as on 01.04.2019.
               Ref : Selection criteria: SI No. 4
       13.     Year wise experience of the firm in conducting Statutory /Internal
               Audit in last 10 years:
                   (a) Name of PSU/Govt. Com panies including concurrent audit
                       in PSU Banks.
                   (b) Other large companies having turnover at least Rs.100
                       crores
                Ref : Selection criteria: SI No. 5
   Further, the following documents are required to be submitted online:

1. Self-attested copy of membership certificate of Partners and full time qualified persons
   issued by Institute of Chartered Accountants of India/Institute of Cost Accountants of
   India.
2. Self-attested copy of Certificate of Practice of Partners and full time qualified persons
   issued by Institute of Chartered Accountants of India/Institute of Cost Accountants of
   India.
3. Self-attested copy of Registration Certificate of PCA/Firm/LLP issued by Institute of
   Chartered Accountants of India/Institute of Cost Accountants of India.

                                              Page 43 of 50
4. Self-attested copy of PAN Card of PCA/Firm/LLP.
5. Self-attested copy of GST Registration Certificate (if applicable)
6. Self-attested copy of work order issued of Statutory/Internal Audit issued by
   PSU/Govt. Companies.
7. Self-attested copy of document showing location of Headquarters/Branch office at
   Kolkata/Assam/NCR/ Delhi.

   In absence of the above documents the offer will be rejected. The documents uploaded
   online to the offer must be serially numbered and duly signed by the bidder with
   official seal.




   Date:                                                     Signature with seal
   Place:                                                    Name of the Partner
   Membership No.
   Name of the Firm
                                                             Firm Registration No.




                                       Page 44 of 50
                                                                                     Annexure-D
                                            Letter of Bid
 To
 Central Coalfields Limited,
 Darbhanga House, Ranchi -834001
 Jharkhand, India

 Dear Sirs,
  Sub: Tender No. :-
1. Having examined the Tender Document including Addenda/Corrigenda, if any (insert
 numbers), we, M/s. (..... name of the bidder firm........) represented by the undersigned,
 Mr/Ms..................... Employee/ Partner /Legal Attorney / Proprietor /Accredited Representative,
 offer to supply and deliver (description of Goods and Services) vide our offer
 No....................dated ............in conformity with the said Tender Document.
2. We confirm to accept all terms and conditions contained in the tender document
 unconditionally.
3. We agree to abide by this bid for a period of 180 days from the date of bid opening and it shall
 remain binding upon us and may be accepted at any time before the expiration of that period.

4. We confirm that until a formal appointment order is issued, this bid together with your written
 acceptance thereof and your Notification of Award, shall constitute a binding Contract between
 us.
5. We understand that you are not bound to accept the lowest or any bid you may receive.

6. We confirm that the contents of the offer are given after fully understanding and all
 information furnished by us are correct and true and complete in every respect.

7. We confirm that all information/ documents / credentials submitted along with the tender
 are genuine, authentic, true and valid.

8. We declare that we are not related in any manner whatsoever with any existing or past Audit
 firm or past and present employee of Coal India or any of its subsidiaries or Directors or any
 person who is employed with Government of India. Past association upto last 3 years of
 personal or financial or any other association of any kind now or in last 3 years

9. We confirm that if any information or document submitted is found to be false / incorrect
 forged/tampered in any way, the said offer shall be considered absolutely null & void and action
 as deemed fit may be taken against us including termination of the contract, forfeiture of all
 dues and Banning of our firm along with all partners of the firm as per provisions of tender
 document/Purchase Manual of CIL & CCL/Provisions of law in force.


                                        Page 45 of 50
10. We have never been banned or delisted by any Government or Quasi-Government Agency or
 any Public Sector Undertaking in India.
                                                       OR
We were banned by the organization named "--------------------------------------- " for a period of -------
 ------------ year(s) effective from ------------------- to ---------------for --- ---------- (the reasons to be
 mentioned).




Dated this_______ day of ______ 20--
Signature_______________
Name ___________________
Designation____________
Seal
Duly Authorised to sign bid for and on behalf of ___________________

Note:
1. This letter should be on the letterhead of the Bidder and should be signed by a person
 competent and having the authority to bind the Bidder. The said document conferring authority
 upon the person should be submitted by the Bidder along with the LOB. If the said document
 conferring the authority is Article of Association of Company, Partnership Deed of a Registered
 Firm or any resolution of the company, then the notarized copy of the same should be
 uploaded. In other cases, the letter of authority should be a Power of Attorney sufficient to bind
 the bidder.
2. Power of Attorney should be on non-judicial stamp paper and sufficiently stamped.

3. In case the person who has signed LOB is not bidding himself and has authorized another
 person whose DSC is mapped in the name of bidder, to bid online on his behalf, then the further
 authorization on non-judicial stamp paper duly notarized (as per Annexure-F) by the person
 signing the LOB in favour of person bidding online is required to be uploaded.




                                            Page 46 of 50
                                                                                                               Annexure - E
                Format for Authorisation to DSC holder Bidding Online by the person
                                   who has signed Letter of Bid
                                      (On NON JUDICIAL STAMP PAPER)

We          do          hereby             authorise    M/s.    /Mr....................................... .................Address
......................................... whose DSC is mappe d in the name of the bidder, for online bidding on
behalf of us for Tender No. .......... dated ...... invited by CCL on https://coalindiatenders.nic.in.



Name, Signature & Seal of the person who has signed Letter of Bid
And is Authorising the DSC Holder for online bidding.




Name, Signature & Seal of the DSC Holder having DSC mapped in the name of the bidder,
 Authorised for online bidding



Signature & Seal of the PUBLIC NOTARY




                                                   Page 47 of 50
                                                                                             Annexure - F

       Selection criteria for engaging Internal Auditors for CIL and its Subsidiaries
SL.No.                   CRITERIA                                  BASIS OF MARKS                MAXIMUM
                                                                                                  MARKS
1           Experience of the Firm:                 1.5 mark per year (fraction of the year to      15
            The minimum experience is 10                          be ignored)
            years for a Firm to be eligible and
            for each years experience they
            would get 1.5 marks. Shall be
            reckoned from the date of joining of
            an existing partner with the Firm
            and having the longest association
            with the firm.

2(A)(i)     Number of full time partners / full    3 marks for each partner/person who is            25
            time qualified persons having more     ACA/ACMA.
            than 5 years experience in practice    4 marks for each partner/person who is
            in   the    firm/Limited   Liability   FCA/FCMA.
            Partnership who is in the firm as
            on 01.04.2019 and continuing
            thereafter.

2(A)(ii)    Number of full time partners / full    2 marks for each partner/person having            5
            time qualified person having more      DISA/CISA
            than 5 years experience in practice
            in the firm/ Limited Liability
            Partnership having DISA/CISA who
            is in the firm as on 01.04.2019 an d
            continuing thereafter.

2(B)        Length of association of the full      4 marks for each partner/person above             10
            time Partner/ full time qualified      20 years.
            person with more than 5 years
            experience in practice with the        3 marks for each partner /person above
            same firm (who is in the firm as on    15 years.
            01.04.2019     an d     continuing
            thereafter).                           2 marks for each partner/person above
                                                   10 years.

                                                   1 mark for each partner/person below 10
                                                   Years but a bove 5 Years.

                                                   (fraction of the year to be ignored)

3.          Number of full time qualified          1.5 marks for every qualified assistant           10
            assistants who is an ACA/ACMA
            having experience of 5 years or less
            and is working with the firm as on
            01.04.2019     an d      continuing
            thereafter.

4           Number of full time semi -qualified    0.75 mark per semi -qualified assistant           5
            assistants  (Inter  Cost/    Inter

                                                   Page 48 of 50
          Chartered - IPCC - both group) & is
          working full time with the firm as
          on    01.04.2019an d    continuing
          thereafter.

5         Experience     of   the    firm   in   2 marks per year of audit.                       20
          conducting        Statutory/Internal
          Audit in PSU/Govt. C om panies
          including concurrent audit in PSU
          Banks,    large   companies     with
          turnover of at least Rs. 100 crores
          each year during the last 10 years.

6(A)      Audit firms having Registered
          Office/Branch Office within the
          state as on 01.04.2019 an d
          continuing thereafter, wherein the
          company headquarter is situated or
          is having its mining operation. Or                                                      10

6(B)      For North       Eastern Coalfields,
          Margherita, Assam (A unit of Coal
          India Limited):
          Audit firms having Registered Office
          / Branch Office, as on 01.04.2019
          and continuing thereafter, within
          Assam.      Or

6(C)      For New Delhi Office (A unit of Coal
          India Limited):
          Audit firms having Registered Office
          / Branch Office, as on 01.04.2019
          and continuing thereafter, within
          National Capital Region, Delhi.

                                      TOTAL MARKS                                                 100
       Note:

       1. In case of tie in the marks scored, firm having seniority w.r.t. "Experience of the Firm" (As
          per SI. No. 1 of Selection criteria.), will be preferred.
       2. A firm which had been appointed as Internal Auditor in Coal In dia Ltd or any of its
          Subsidiary Com panies and served a term of three years (i.e. F.Y. 2017 -18 to 2019-20)
          would not be considered for a ppointment of Internal Auditor for next three succeeding years
          (cooling period).
       3. A firm, which has been removed from internal audit assignment from CIL or its subsidiaries
          during F.Y. 2014-15 to F.Y. 2019-20, or have been held guilty by the ICAI Disciplinary
          process in the last 10 years or who is un der investigation or has been charge sheeted or
          punished for any legal de fault with imprisonment will not be considered for a ppointment of
          Internal Auditor in CIL and its subsidiaries. ICAI means "The Institute of Chartered
          Accountants of In dia" and "The Institute of Cost Accountants of In dia".
       4. The final selection will be based on professional judgement of the appointing authority. The
          short listed candidates/firms will be asked to make a 15 minutes presentation before the
          respective Audit Committee for consideration which will carry 50 marks based on various


                                                 Page 49 of 50
professional parameters as may be considered a ppropriate by the selection authority
including infrastructure of office, approach towards audit, usage of specialized audit tools
and methodology, professional approach of the main partner and commitment to excellence
based on interaction as may be judged an d cannot be questioned in any manner and will be
strictly confidential. Any attempt to question the selection will be considered as solicitation
of assignment and will be referred to ICAI for Disciplinary process. The number of
shortlisted Firms to be called for making presentation before the Audit Committee would be
3 times of num ber of vacancies in the descending order of marks with a minimum qualifying
marks of 70.




                                                            Signature Not Verified
                                                            Digitally signed by PRAMOD KUMAR SINGH
                                       Page 50 of 50        Date: 2019.12.24 17:31:54 IST
                                                            Location: Coal India Limited-CIL

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