Small Industries Development
Bank of India
Request for Proposal (RfP)
For
Concurrent Audit of Operations of
Institutional Finance Vertical (IFV)
& Non-treasury Investment Transactions of
Venture Capital Fund (VCF)
Small Industries Development Bank of India
Audit Vertical
4th FLOOR, SIDBI TOWER,
15, ASHOK MARG,
LUCKNOW - 226001
Website : www.sidbi.in
Tender No. 2020NOV29/T000181768/A&FMV
THE INFORMATION PROVIDED BY THE BIDDERS IN RESPONSE TO THIS TENDER DOCUMENT WILL
BECOME THE PROPERTY OF SIDBI AND WILL NOT BE RETURNED. SIDBI RESERVES THE RIGHT TO
AMEND, RESCIND OR REISSUE THIS TENDER DOCUMENT AND ALL AMENDMENTS WILL BE
NOTIFIED ON SIDBI'S WEBSITE www.sidbi.in AND THESE WILL BE BINDING ON THE BIDDERS.
(THIS DOCUMENT SHOULD NOT BE REUSED OR COPIED OR USED EITHER PARTIALLY OR FULLY IN ANY FORM )
Critical Information Summary
1) The RfP is posted on the SIDBI website www.sidbi.in. SIDBI reserves the sole right for
carrying out any amendment / modifications / changes including any addendum to this
RfP. Such amendments / modifications / changes including any addendum to this RfP
shall be notified on SIDBI's website www.sidbi.in and these will be binding on the bidders.
2) Bidders are advised to study the tender document carefully. Submission of bids shall be
deemed to have been done after careful study and examination of the tender document
with full understanding of its implications.
3) Any clarifications from bidder or any change in requirement will be posted on SIDBI
website. Hence, before submitting bids, bidder must ensure that such clarifications /
changes have been considered by them. SIDBI will not have any responsibility in
case some omission is done by any bidder.
4) In case of any clarification required by SIDBI to assist in the examination, evaluation
and comparison of bids, SIDBI may, at its discretion, ask the bidder for clarification.
The response / Clarification shall be in writing and no change in the price of
substance of the bid shall be sought, offered or permitted.
5) Please note that all the information required as per the bidding document needs to be
provided. Incomplete information in these areas may lead to non-selection.
6) Modification and / or withdrawal of bids:
Bids once submitted will be treated as final and no further correspondence will be
entertained. No bid shall be modified after the deadline for submission of bids. No bidder
shall be allowed to withdraw the bid, if bidder happens to be the successful bidder.
7) SIDBI has the right to reject any or all bids received without assigning any reason
whatsoever.
NOTE:
SIDBI SHALL NOT BE RESPONSIBLE FOR NON-RECEIPT / NON-DELIVERY OF
THE BID DOCUMENTS DUE TO ANY REASON, WHATSOEVER.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Schedule of events:
Sr.
Bid Reference - 2020NOV29/T000181768/A&FMV
No.
Concurrent Audit of Operations of
Institutional Finance Vertical (IFV)
1 Purpose
and Non-treasury Investment Transactions of
Venture Capital Fund (VCF)
One (1) Envelope.
1 set of hard copy should be submitted in
sealed single envelope superscribed at the
No. of Envelopes (Non window, top of the envelope "Request for Proposal
2 (RfP) for Concurrent Audit of Operations of
sealed) to be submitted
Institutional Finance Vertical (IFV), and Non-
treasury Investment Transactions of Venture
Capital Fund (VCF), Mumbai, SIDBI "For
Technical Evaluation".
3 Date of uploading of the RfP November 29, 2019 (Friday)
4 Last date of submission of Bids December 20, 2019 at 2:00 p.m (Friday)
Venue, Date and Time of opening December 20, 2019 by 3:00 p.m at the address
5
of Bids. given at Sr. No. 9.
6 Date of Pre-bid meeting December 09, 2019 by 4:00 p.m (Monday)
Response to clarification / pre-bid
7 December 13, 2019 by 4:00 p.m (Friday)
meeting
6 months from the last date of submission of
8 Bid Validity
bids.
The General Manager
Audit & Fraud Management Vertical
SIDBI, 4th Floor
SIDBI TOWER,
9 Address for submission of Bids
15, ASHOK MARG,
LUCKNOW - 226001
Ph : 0522-2288546-50
E-mail: auditvertical_ho@sidbi.in
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Contact Persons:
Name & Designation Phone e-mail
10
Susheel Kumar Agrawal [M] 0522- 4259821 auditvertical_ho@sidbi.in
Avinash Kumar [AGM] 0522- 4259753 auditvertical_ho@sidbi.in
If a holiday is declared on the dates mentioned above, the proposals shall be received /
opened on the next working day at the same time specified above and at the same venue
unless communicated otherwise.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Introduction and Disclaimers
1.1 Purpose of RfP
The purpose of RfP is to shortlist experienced professional firm / Limited Liability
Partnership (LLP) of Chartered Accountants, for undertaking Concurrent Audit of Operations
of Institutional Finance Vertical (IFV) and Non-treasury Investment Transactions of Venture
Capital Fund (VCF) at Mumbai.
Table I
O/S as on
Sl. Name of the HO
Office June 30, 2019 Scope of work
No. Vertical
(` in Crore)
Institutional Finance Annexure- I - (Refinance to
Vertical (IFV) and Non- Banks, SFBs, SFCs & SIDCs),
treasury Investment Annexure- II - (Resource
Transactions of Venture support to NBFCs)
1 Capital Fund (VCF) Mumbai 1,28,122.01 Annexure- III - (MFI assistance,
IMEF and Prayaas),
Annexure- IV (VCF operations)
Annexure- V Volume of work
1.2 Purpose of RfP
The Request for Proposal document contains statement derived from information that is
believed to be relevant at the date but does not purport to provide all the information that
may be necessary or desirable to enable an intending contracting party to determine
whether or not to enter into a contract or arrangement with SIDBI. Neither SIDBI nor any of
its employees, agents, contractors or advisors give any representation or warranty, express
or implied, as to the accuracy or completeness of any information or statement given or
made in this document. Neither SIDBI nor any of its employees, agents, contractors, or
advisors have carried out or will carry out an independent audit or verification exercise in
relation to the contents of any part of the document.
1.3 Disclaimer
Subject to any law to the contrary, and to the maximum extent permitted by law, SIDBI and
its officers, employees, contractors, agents and advisors disclaim all liability from any loss or
damage (whether foreseeable or not) suffered by any person acting on or refraining from
acting because of any information including forecasts, statements, estimates or projections
contained in this RfP document or conduct ancillary to it whether or not the loss or damage
arises in connection with any negligence, omission, default, lack of care or
misrepresentation on the part of SIDBI or any of its officers, employees, contractors, agents,
or advisers.
1.4 Costs to be borne by Applicants
All costs and expenses incurred by Applicants in any way associated with the development,
preparation, and submission of responses, including but not limited to the attendance at
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RfP Concurrent Auditor of IFV & VCF, SIDBI
meetings, discussions, demonstrations, etc. and providing any additional information
required by SIDBI, will be borne entirely and exclusively by the Applicant.
1.5 No Legal Relationship
No binding legal relationship will exist between any of the Applicants and SIDBI until
execution of a contractual agreement.
1.6 Applicant Obligation to Inform Itself
The Applicant must conduct its own investigation and analysis regarding any information
contained in the RfP document and the meaning and impact of that information.
1.7 Evaluation of Offers
Each applicant acknowledges and accepts that SIDBI may in its absolute discretion apply
selection criteria specified in the document for evaluation of proposals for shortlisting/
selecting the eligible Concurrent Auditor(s). The RfP document will not form part of any
contract or arrangement, which may result from the issue of this document or any
investigation or review carried out by a Recipient.
1.8 Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all the information /
data / operations, etc. of SIDBI.
1.9 Errors and Omissions
Each applicant should notify SIDBI of any error, omission, or discrepancy found in this RfP
document.
1.10 Acceptance of Terms
An applicant will, by responding to SIDBI for RfP, be deemed to have accepted the terms of
this Introduction and Disclaimer.
2. Lodgment of RfP
2.1 RfP submission:
RfP document submission is required to be done by December 20, 2019 (Friday) (2.00
PM) as under :-
Hard copy should be submitted at the following address in double sealed envelope
superscribed at the top of the envelope "Request for Proposal (RfP) for
Concurrent Audit of Operations of Institutional Finance Vertical (IFV), and Non-
treasury Investment Transactions of Venture Capital Fund (VCF), Mumbai, SIDBI".
The General Manager
Audit & Fraud Management Vertical
Small Industries Development Bank of India (SIDBI)
4th Floor, SIDBI Tower, 15, Ashok Marg,
Lucknow 226001 (U. P.)
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Telephones: (0522) 2288546-50
Email: auditvertical_ho@sidbi.in
RfP must be submitted on or before the aforementioned closing date and time.
Fax / e-mail copies of any submission are not acceptable and will be rejected
by the Bank.
Copy of bids and attachments must be provided in a sealed envelope.
The person(s) signing the bids shall initial all pages of the bid including all attachments,
etc. The bid shall contain no erasures or overwriting except as necessary to correct errors
made by the applicant, in which case, corrections shall be initialed by the person(s)
signing the bid.
If the submission does not include all the information required or is incomplete, the
proposal is liable to be rejected.
All submissions, including any accompanying documents, will become the property of
SIDBI. Applicants shall be deemed to license, and grant all rights to SIDBI to reproduce
the whole or any portion of their submission for the purpose of evaluation, to disclose the
contents of the submission to other Respondents and to disclose and / or use the
contents of the submission as the basis for any resulting RfP process, notwithstanding
any copyright or other intellectual property right that may subsist in the submission or
accompanying documents.
2.2 RfP Validity Period
The proposal must remain valid and open for evaluation according to their terms for a
period of at least six (6) months from the time the RfP closes on the deadline for
lodgment of RfP.
2.3 Cost of RfP Document
No cost has been prescribed for the RfP Document.
The term of the Concurrent Auditor would be for maximum of three years
(i.e. one year+ extension for two years). Thereafter, cooling period of
one year would be observed for considering the services of the CA firm
again in the same BO / RO / HO Vertical where the assignment has been
completed. If the Concurrent Auditor's services are not availed, under
such circumstances also, one year cooling period will be applicable from
the date of discontinuation of the assignment for the concurrent audit of
the same BO /RO / HO Vertical. However, for appointment at other BO
/RO / HO Vertical, they may apply even during the cooling period
provided the services of the Concurrent auditor are satisfactory.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
2.4 One bid / application per applicant
Applicant can submit application for engagement as concurrent auditor for
Institutional Finance Vertical (IFV) and Non-treasury Investment Transactions
of Venture Capital Fund (VCF) at Mumbai where applicant has a regular office
set-up, either head office or full fledged branch office(s).
Firms already engaged with SIDBI:
SIDBI shall engage the services of a firm / LLP for carrying out Concurrent
Audit of only one office of SIDBI. Accordingly, in case the applicant has
already been engaged as Concurrent Auditor by SIDBI for any of its branches
/ RO and or HO Verticals, such Firm / LLP will not be eligible to apply under
this RfP.
If the Concurrent Auditor's services are not availed, under such
circumstances also, one year cooling period will be applicable from the date
of discontinuation of the assignment for the concurrent audit of the same BO
/RO / HO Vertical. However, for appointment at other BO /RO / HO Vertical,
they may apply even during the cooling period provided the services of the
Concurrent auditor are satisfactory.
The cooling period of one year shall be independently reckoned for each of
the concurrent audit of BO/RO/HO Vertical, etc.
2.5 Late Applications
Any RfP / application received after the deadline for submission of the bids / applications
will be treated as "Late Application" and such late applications shall not be considered at
all for competitive consideration.
2.6 Requests for Proposal
SIDBI may, in its absolute discretion, seek additional information or material from any
applicants after the RfP closes and all such information and material provided must be taken
to form part of that Applicant's response.
Applicants should provide details of their contact persons, Fax, Telephone, email and full
address(s) to ensure that replies to bids could be conveyed promptly.
If SIDBI, in its absolute discretion, deems that the originator of the question will gain an
advantage by a response to a question, then SIDBI reserves the right to communicate such
response to all Applicants.
SIDBI may, in its absolute discretion, engage in discussion or negotiation with any Applicant
(or simultaneously with more than one Applicant) after the RfP closes to improve or clarify
any response.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
2.7 Notification
SIDBI will notify all short-listed Applicants in writing as soon as practicable about the
outcome of their bids. SIDBI is not obliged to provide any reasons for any such acceptance
or rejection.
2.8 Disqualification
Any form of canvassing / lobbying / influence / query regarding shortlisting, status, etc. will
lead to disqualification.
3 About SIDBI
3.1 Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an
Act of Indian Parliament, is the Principal Financial Institution for the Promotion,
Financing and Development of the Micro, Small and Medium Enterprise (MSME)
sector and for Co-ordination of the functions of the institutions engaged in similar
activities.
SIDBI provides its services through a network of Branch Offices located all over India.
Detailed information on the functions of SIDBI is provided on the website,
www.sidbi.in
3.2 SIDBI offers several financial and non-financial products and services for catering the
financial and non-financial needs of Micro, Small and Medium Enterprises (MSMEs)
through its field level offices. These include the following broad areas:
Direct Finance
Bills Finance
Refinance
Promotion and Development
Micro-finance
4 Project Particulars:
The scope of work for Institutional Finance Vertical (IFV) is given in Annexure- I
(Refinance to Banks, SFBs, SFCs & SIDCs), Annexure- II (Resource support to
NBFCs), Annexure- III (MFIs, IMEF and Prayaas) and Annexure - IV (VCF
operations).
The volume of work in each division of IFV and other HO Vertical is indicated in
Annexure- V.
5 Fee Structure:
The fee structure under this mechanism is based on the outstanding portfolio of the Head
Office Vertical as at the end of June 30, 2019. 2 CAs would need to be deployed for
concurrent audit of IFV. The award of contract to CA firms / LLPs to undertake concurrent
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RfP Concurrent Auditor of IFV & VCF, SIDBI
audit will be as per fee structure issued by the Bank from time to time. The present fee,
based on the outstanding portfolio size and average transactions / day is indicated below:
Fee Payable Per Month (excluding
Outstanding Portfolio GST, etc.)
` 1,28,122 Crore ` 1,00,000/ -
Note: Maximum upto 5% annually enhancement in remuneration may be considered, if
the contract is renewed, after one year, provided the performance is found satisfactory.
No out of pocket expenses or traveling allowance / halting allowance would be paid to the
concurrent audit firm / LLP for carrying out the audit. However, the service tax, education
cess / GST, etc. would be paid by the Bank, as applicable, in addition to the basic fees. The
payment to the concurrent auditors would be subject to deduction of tax at source, at
applicable rates.
6 Selection process
This RfP will be assessed on the following Selection process:-
Invite Request for Proposal (RfP) wherein Technical Evaluation information is
submitted in envelope.
Technical evaluation:
a) The Applicant is required to submit the details of its proposal in sealed
envelope. The envelope should be superscribed :
i. Request for Proposal (RfP) for Concurrent Audit of Institutional Finance
Vertical (IFV) and Non-Treasury Investment transactions of VCF,
Mumbai.
ii. Envelop should carry the Request for Proposal (RfP) for Concurrent
Audit of Applicant Firm / LLP Name & address
for said Concurrent Audit and should contain detailed statement giving the various
technical particulars of the proposal covering aspects of the Applicant like name and
location, year of establishment, names of its partners, staff, their qualification/
experience, registration number of the firm / LLP, details of ICAI membership/
Certificate of Practice details, methodology proposed and all other such relevant
particulars in the format given in Para 10.
b) After the expiry of last date for submission of bids/ application, the envelope
containing the compliance on the "Technical Evaluation" would be opened in respect
of all the applicants to verify the compliance of the applicants with the prescribed
Technical Evaluation information requirements.
[
c) The Technical Evaluation of Application would be carried out by SIDBI. The
technically qualified applicants would be short listed.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
d) The requirement of the applicants for IFV Operations and Non-treasury Investment
Transactions of Venture Capital Fund (VCF) is given in Annexure IV.
7 Tenure of the contract:
The selected firm / LLP of Chartered Accountant would initially be assigned the contract
tentatively for a likely period of upto December 31, 2020 extendable for further two
more years (extended for one year, at a time), provided the performance is found to be
satisfactory on review and on sole discretion of SIDBI, with not more than 5% increase
in professional fee. The concurrent audit is likely to start from January 01, 2020. The
proposed assignment would be subject to periodical review at the discretion of SIDBI
and is liable to be terminated at any time, if not found satisfactory, by giving a written
notice of 15 days.
8 Terms & Conditions:
8.1 The Applicant shall ensure that the audit be carried out in a professional manner
and in case of any misconduct & negligence, the Bank may approach the
concerned professional bodies with complaints of professional misconduct, if any,
on the part of any professional engaged by the Bank. Accordingly, we may also
recommend their name to ICAI/ RBI/ IBA or any other authority, for suitable action
thereon by them.
8.2 The Applicant shall ensure that it will not sub-contract the audit work assigned to
any outside firm / LLP or other persons even though such persons are qualified
Chartered Accountants.
8.3 The applicant appointed as Concurrent Auditor to IFV should nominate and
deploy two Chartered Accountants (Designated Auditors), one of whom will
head the concurrent audit team as the " Lead Designated Auditor" duly
authorised by the FCA partner of the CA firm / LLP to act on behalf of the
firm. The Designated Auditors would be required to submit their identity proof
and address proof together with specimen signatures with a request to be allotted
biometric enabled unique login ID for access to the system. The Designated
Auditors would require to log in and log out of the system each working day. The
Designated Auditors would require to surrender the login ID on completion of the
concurrent audit tenure or on any change in the Designated Auditor(s) by the firm
/ LLP.
8.4 The audit team composition for Concurrent Audit and attendance requirements
should be specified as under :-
a) The FCA partner of the firm / LLP who shall visit the Vertical at least 4 days in
a month; and
b) Two Chartered Accountants, who shall visit the Vertical preferably on all
working days but for a minimum of 20 days in a month (provided that the
number of working days are more than 20 days in a month).
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RfP Concurrent Auditor of IFV & VCF, SIDBI
8.5 The concurrent auditors should adhere to the audit coverage strictly as per the
scope as may be decided by the Bank from time to time.
8.6 The concurrent auditors should not undertake any other activities / assignment on
behalf of the HO Vertical without obtaining the concurrence of the Audit & Fraud
Management Vertical at Head Office, in writing.
8.7 The concurrent auditors will co-operate with investigative body, regarding
processing or execution of the consultancy contract or any matter related with
discharge of contractual obligations.
8.8 Necessary arrangement would be made for providing space, workstation and
access to systems (viewing rights only) to the concurrent auditor for ensuring
smooth conduct of the audit.
8.9 The concurrent auditors shall be granted read only access to the systems of the
Vertical.
8.10 The concurrent auditors shall not be allowed to carry any mass storage device
such as pen drive / flash drive / thumb drive or any laptop inside the HO premises
as these devices will not be required for the job. Concurrent auditor shall be
provided with computer system with disabled USB ports by the concerned HO
Vertical.
8.11 The concurrent auditors are required to plan the audit that it results in gradual
shortening of the interval between a transaction and its examination by an
independent person. The concurrent auditor shall perform substantive checking in
key areas and emphasis should be on `on the spot' rectification of deficiencies.
The concurrent auditors shall daily go through all the vouchers and books of the
IFV, HO Vertical for the previous day and identify areas to be scrutinized in detail.
8.12 Should maintain and keep back up papers in support of observations made.
8.13 Any other terms and conditions of the assignment would be decided by the Bank
on a case to case basis.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
A. Declarations and undertaking
On appointment, the Applicant shall execute undertaking of fidelity and secrecy on its
letterhead in the format prescribed by the Bank.
A declaration to be furnished by the applicant that credit facilities availed by the firm or
partners or firms in which they are partners or directors including any facility availed by a
third party for which the firm or its partners are guarantor/s have not turned or are
existing as non-performing assets as per the prudential norms of RBI. In case the
declaration is found incorrect, the assignment would get terminated besides the firm
being liable for any action under ICAI / RBI guidelines.
The applicant must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future accept
professional relationship with any of the borrowers of SIDBI during the period during
which the firm / LLP acts as the concurrent auditor for SIDBI.
Any other terms and conditions of the assignment would be decided by the Bank on a
case-to-case basis.
B. Selection Process
All applicants scoring 65 marks or more (in Technical Evaluation) will be empanelled as
the Technically Qualified Applicant.
Due diligence will be carried out for the top three applicants getting the maximum marks.
On the recommendation of the Committee, name of the successful applicant would be
identified for Concurrent audit of IFV & VCF.
The final selection of the successful applicants from the technically qualified applicants
will be done, based on marks scored in Rating Chart and due diligence
carried out by SIDBI.
9 Guidelines & Instructions for applying:
i. SIDBI will endeavour to make available all relevant information in the RfP. In case of
need of any further information or clarification during the application period, the
applicant must contact only the Contact Officer named above. On no account should
the Applicants communicate directly with any other SIDBI personnel. Failure to
comply with this requirement may result in the disqualification of the applicant from
this competition.
ii. Government Tax
Applicants are responsible for establishing the status of the Services for the purpose
of any government tax including GST, cess etc.
iii. Alterations to Application
Any manuscript or other alteration to the RfP / Application must be countersigned and
dated by the person submitting the RfP / application.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
iv. Letters and Declaration to Accompany Applications
The bid / Application must be accompanied by a letter on Firm / LLP letter head
showing the full registered name(s), registered office address of the applicant. It
should be signed by a person of suitable authority to commit the applicants to a
binding contract.
v. Packaging and Delivery of Applications
a) The Applicant is required to submit the details of its proposal in a sealed envelope.
The envelope should clearly superscribed as under:
i. Request for Proposal (RfP) for Concurrent audit of Institutional Finance
Vertical (IFV) & Non-Treasury Investment transactions of VCF, Mumbai.
ii. Envelop should carry the Request for Proposal (RfP) for Concurrent Audit
of Applicant Firm / LLP Name & address
SIDBI accepts no responsibility for the premature opening of any incorrectly marked
Applications.
Applications must be received at Audit & Fraud Management Vertical, Small
Industries Development Bank of India, 4th Floor, SIDBI Tower, 15, Ashok Marg,
Lucknow 226001 (U. P.) for the attention of The General Manager by 2.00 PM on
the due date. Late applications will not be accepted under any circumstance. No
special pleadings will be accepted. Faxed or e-mailed applications will not be
accepted.
vi. Conflict of Interest
Applicants must disclose in their application details of any circumstances, including
personal, financial and business activities that will, or might, give rise to a conflict of
interest; this includes any sub-contractor, if they were awarded this contract. Where
applicants identify any potential conflicts they should state how they intend to avoid
such conflicts. SIDBI reserves the right to reject any application which, in SIDBI's
opinion, gives rise or could potentially give rise to a conflict of interest.
vii. Disclosures
The applicant must disclose:
a. If they are OR have been the subject of any proceedings or other arrangements
relating to bankruptcy, insolvency or the financial standing of the applicant
including but not limited to the appointment of any officer such as a receiver in
relation to the applicant's personal or business matters or an arrangement with
creditors or of any other similar proceedings.
b. If they are OR any of the applicant's staff have been convicted of, or are the
subject of any proceedings, relating to:
A criminal offence or other offence, a serious offence involving the activities of
a criminal organisation or found by any regulator or professional body to have
committed professional misconduct.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Corruption including the offer or receipt of any inducement of any kind in
relation to obtaining any contract, with SIDBI, or any contracting authority.
Failure to fulfill any obligations in any jurisdiction relating to the payment of
taxes or social security contributions.
Disclosure extends to any entity in the same group of the applicant (including but not
limited to parent subsidiary and sister companies, and companies with common
shareholders whether direct or indirect and parties with whom the applicant is
associated in respect of this application/ bid).
If an applicant or related entity or any individual discloses details of any previous
misconduct or complaint, SIDBI will seek an explanation and background details from
them. At the sole discretion of SIDBI and assessment as to whether the Applicant will
be allowed to submit an application, decision will then be made by SIDBI.
viii. Indemnity
The successful applicant shall exercise reasonable skill, care and diligence in the
performance of the assignment and indemnify and keep SIDBI indemnified in respect
of any loss, damage or claim howsoever arising out of or related to breach of
contract, statutory duty or negligence by the firm/ LLP or its staff, agents or sub-
contractors in relation to the performance or otherwise of the services to be provided
under this Contract.
ix. Assigning to Others
The successful applicant shall not, without the prior written consent of SIDBI, assign
or transfer or cause to be assigned or transferred, whether actually or as the result of
take over, merger or other change of identity or character of the CAs, any one of its
rights or obligations under the Contract or any part, share or interest therein. Upon
any such assignment or transfer, this engagement may forthwith be terminated by
SIDBI.
x. Termination
SIDBI may, at its sole discretion and at any time terminate the Contract (after giving
15 days of notice) and inform the CAs of SIDBI's decision by written instruction to that
effect. In the event of the Contract being so terminated, the firm/ LLP shall take such
steps as are necessary to bring the Services to an end, (including terminating any
sub-contracts placed by the firm / LLP) in a cost effective, timely and orderly manner.
No further correspondence will be entertained in this regard.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Annexure I
Scope of Work - Institutional Finance Vertical (IFV)
(Refinance to Banks, SFBs, SFCs & SIDCs)
1.1 Project Objective and Scope of Operations of IFV (Banks, SFBs & SFCs)
The operations include providing refinance to Banks, Small Finance Banks (SFBs) under various
schemes of refinance. The selected Chartered Accountants would undertake the concurrent audit of the
operations on daily / periodic basis and also suggest measures to improve the functioning and efficiency.
Assignment would also include verification and confirmation on the adequacy of internal controls and IT
system for sustaining operations. The staff deputed by the firm / LLP of Chartered Accountants for carrying out
the audit should be qualified and experienced in the area of work. Concurrent Audit covers various activities of
IFV Operations, including its core functions such as credit appraisal, pre-sanction and post-sanction
supervision and other day to day operations, various MIS / data, etc. within the policy guidelines and
parameters laid down. All concerned documents / office notes which come within purview are to be signed off
by the concurrent auditor.
A. Broad scope of work
(i) Banks, SFBs
a) Day to day transactions, including checking of exposure limits, sanction, fixing of rate of interest,
disbursements and repayments, refinance sanction / disbursement applications.
b) LoI, Documentation.
c) Compliance with pre-sanction / LoI / pre-disbursement / post-disbursement conditions. Deviations
made, if any, are within the guidelines issued from time to time. Disbursement notes to be signed
off by the concurrent auditor.
d) System reports related to sanction / disbursements / appropriations / rating.
e) Demand advices are raised correctly and sent in time.
f) Accounting of all transactions. (data entry to appropriation).
g) Compliance with respect to RBI norms and internal control guidelines.
h) MIS / Returns submitted to HO Verticals / RBI /Govt. of India.
i) MIS to Senior Management.
j) Approval notes put up to competent authority.
k) Adherence to Delegation of Powers (DoP), Post Sanction Reporting (PSR), wherever applicable.
l) Annual rating.
m) Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List / IBA
caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. if applicable.
n) Equity related investments made in banks/Holding Companies.
18 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
o) Compliance with statutory / regulatory guidelines.
p) Reporting any irregularity in working which may result in financial or other loss to the
Bank.
q) Periodical verification of advance income tax calculations.
r) Ensuring compliance with laid down systems, procedures and policies.
s) Detection and arresting of leakage of income, if any.
t) To follow up with authorities to ensure timely rectification of irregularities reported with
regard to the operations and rectified on the spot/ during audit period itself.
u) Verify prompt, timely and regular submission of the periodical and statutory returns.
v) Any other critical areas of operations not covered above.
(ii) SFCs / SIDC
a) Equity related investments made in SFCs, Receipt of Dividend etc.
b) Compliance with laid down systems, procedures and policies, statutory / regulatory
guidelines.
c) Recovery of pending dues.
d) Follow-up in respect of NPA accounts.
e) Inspection of SFCs and compliance.
f) Receipt / review of Nominee Directors' report.
g) Valuation of SFCs portfolio.
h) Dematerialization of shares.
B. Accounting (Banks / SFBs / SFCs/ SIDCs)
a) To ensure that all the transactions viz. receipts, payments, journal vouchers are
validated by proper instruments/ approval note, etc.
b) Transfer of daily surplus funds with the commercial bank through which IFV is
undertaking its transactions, presently IDBI & SBI, and related data entry in GPPS/ PNC
etc.
c) Periodic reconciliation of bank accounts (once in 15 days) and reporting to CAV.
d) Review of Trial Balance / balances of all GL codes, any SL-GL mismatch at monthly
interval and reporting to CAV.
e) Independently verify the transactions and accounts viz. receipts & payments validated
through instruments, verify the process of reconciliation undertaken by BO of various
sensitive accounts viz. Sundry, Suspense, Receipts Pending Appropriation, bank
reconciliation etc., instead of reporting merely based on the certificates / statements by
the vertical officials.
f) To ensure that all the accounting transactions are carried out in accordance with the
extant guidelines of the Bank.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
g) To examine and verify the appropriations done by the vertical for the repayments
received and are correctly captured in the system so that correct position is reflected at
the time of quarterly and annual closing of accounts.
h) Verify whether the classifications of loan assets of the vertical have been done properly
and income recognition norms have been followed as per Bank's guidelines and
procedure/ RBI norms by the vertical.
i) Review of Trial Balance and clearly mention the correctness / completeness of the
related GL Codes, any GL-SL mismatch at monthly internal, adequacy of provision of
outstanding liabilities at the end of each quarter end and certification of Trial Balance of
IFV ( Banks / SFBs / SFCs/ SIDCs) .
C. Scope for Follow up & Monitoring (Banks / SFBs / SFCs/ SIDCs)
a) Annual Review and Re-rating of the accounts as per guidelines has been done.
b) Safe Custody verification is being carried out by Vertical as per the extant guidelines.
c) Receipt of beneficiaries data from banks, follow-up end use verification visits and
inspections carried out as per the laid down policies / practice.
d) Receipt of Balance Confirmation Certificate.
e) Receipt of annual report.
f) Any mis-utilization of the financial assistance and whether there are instances indicative
of diversion of funds.
g) Detection & prevention of revenue leakages in the operations.
The above areas of operation are illustrative and not exhaustive.
Reports:
The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.
The firm / LLP will have to submit the following reports relating to the Operations:
I. Daily reports covering day-to-day transactions with regard to their correctness, monitoring of
risks and observations, if any, on counterparty and other specified limits by the Bank, etc.
II. Monthly reports covering comments on adherence to regulatory and internal policy guidelines
including post disbursement monitoring guidelines and areas of audit including submission of
MIS to Management. Reconciliation of accounts and other similar periodic submission.
III. Quarterly report on closing work pertaining to the operations and tallying of trial balance.
IV. Any other related report as may be required by SIDBI from time to time.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
The above reports with regard to IFV Operations should be submitted to the head of the Vertical,
Institutional Finance Vertical at Mumbai, both in soft and hard forms, within a week of the reporting
period for which the report pertains. Daily reports should be released at the end of the day to The
Chief General Manager, Institutional Finance Vertical at Mumbai, both in soft and hard form. The
formats of the reports would have to be devised, wherever required, by the firm/ LLP in consultation
with and approval of SIDBI
SIDBI will prescribe structured formats for the audit reports and also stipulate the time limits for
submission of the reports. The audit formats would be reviewed periodically, as and when required.
The firm/ LLP should strictly adhere to the format and the time limit. SIDBI may prescribe different
periodicity for different reports of the operations.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Annexure II
Scope of Work - Institutional Finance Vertical (IFV) (Resource support to NBFCs), Mumbai
A. Objectives and work areas of Concurrent Audit
The main objectives and work areas of the concurrent audit are as follows:
a) Verifying whether sanctions for advances and disbursement thereof is obtained from
competent authority.
b) Scrutinizing the completeness of documents submitted for availing advances and other
facilities.
c) Ensuring compliance of laid down systems, procedures and policies.
d) Examining books of accounts, records and / or registers to ensure that they are maintained in
accordance with the prescribed systems/reconciled with general ledger.
e) Detection and arresting of leakage of income, if any.
f) To follow up with authorities to ensure timely rectification of irregularities reported with regard
to the operations of the vertical and rectified on the spot/ during audit period itself.
g) Verify prompt, timely and regular submission of the periodical and statutory returns.
h) Any violation of procedure is brought to light.
i) Reporting any irregularity in working which may result in financial or other loss to the Bank.
j) Feedback on regulatory compliances.
k) Any other areas on the operations of the Bank which are vital, in nature.
B. Scope
a) Whether the transactions or decisions are within the policy parameters laid down by the
Bank.
b) Sanction and disbursement of loans & advances are within the policy parameters laid down
by the Bank. All the loan disbursements are to be checked / verified by the concurrent
auditors before actual disbursements and all the disbursement notes need to be signed off by
the concurrent auditors (CA Partner).
c) Sanctions / disbursements are within the delegated authority
d) Sanctions / disbursements do not violate the instructions or policy prescriptions of the RBI /
other regulators.
e) Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List / IBA
caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. is done
satisfactorily.
f) DoP has been exercised properly and Post Sanction Reporting (PSR), wherever applicable,
is sent to Post Sanction Reporting Authority (PSRA).
g) Security creation has been done properly. All the prescribed and necessary documents are
collected from borrowers.
h) Verify whether all charges of SIDBI on the assets hypothecated are registered with Registrar
of Companies (ROC).
i) Pre-disbursement conditions are duly complied with. Deviations made, if any, are within the
guidelines issued from time to time.
j) Verify the end use of term loan disbursed by the Vertical for the purpose it is meant for.
k) Verify whether visits to the beneficiary units have been carried out as per the guidelines and
observations, if any, bring to the notice of the authority of the Vertical.
l) All the receipts have been properly accounted for/ appropriated as per Bank's accounting
policy.
m) All regulatory provisions/ guidelines are duly complied with (e.g. areas including TDS and
service tax / professional tax/GST etc).
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RfP Concurrent Auditor of IFV & VCF, SIDBI
n) Whether in all cases where the statements/ documents (stock statement, Balance
Confirmation Certificate, Acknowledgment of Debt, Annual report etc.) are not received even
after a reasonable time, prompt action is taken by the vertical to get the same.
o) Verify whether there is any mis-utilisation of the loans and whether there are instances
indicative of diversion of funds.
p) Detection & prevention of revenue leakages in the operation of the Vertical through close
examination of income and expenditure.
q) Verify whether there are any borrowal accounts (other than those reported by the Vertical)
which are showing early warning signals or symptoms of sickness and/or can be classified as
NPAs. If so, ascertain the reasons thereof and analyse the steps taken by the Vertical in the
matter.
r) Verify whether the classification of loan assets of the Vertical have been done properly and
income recognition norms have been followed as per Bank's guidelines and procedure/ RBI
norms by the Vertical.
s) Verify the updation of CIBIL data and report the status in the monthly audit report.
t) Verify the details of flow of applications, time taken for appraisal of proposals, pending
applications etc. with the vertical and report the status in the monthly audit report.
u) Verify whether interest rate is charged as per approved rate of Interest.
C. Accounting
a) The maintenance and balancing of accounts, ledgers and registers is proper.
b) Early reconciliation of entries outstanding in the Vertical with regard to inter-branch and inter
bank accounts, Suspense Account, Sundry Deposits Account, etc. Ensure early adjustment
of entries in the Vertical.
c) To ensure that all the transactions viz. receipts, payments, journal vouchers are validated by
proper instruments/ approval note, etc.
d) To ensure that all the accounting transactions are carried out in accordance with the extant
guidelines of the Bank.
e) To examine and verify the appropriations done by the Vertical office for the repayments
received during the month. The objective is to ensure that the appropriations done by the
Vertical is correctly captured in the system and are in order so that correct position of
overdues / dues / RPA etc. is reflected at the time of quarterly and annual closing of accounts
as on March 31.
f) To ensure that the CA Certified half yearly stock statement from the borrower is obtained in
time.
g) To scrutinize the half yearly stock statements to ensure adequate MSME assets are available
to cover the exposure of SIDBI.
h) To ensure that quarterly NBS 7/2, half yearly ALM statement, half yearly due diligence
certificate, other financial statements are obtained, wherever applicable and indicate the
observations on the relevant aspects like CRAR, NOF, Asset Liability Profile etc.
i) To check the correctness of upfront fee, interest / penal interest, etc.
j) Verification as per extant guidelines.
k) To verify the correctness of security, Legal compliance, ROC search etc.
l) Review of Trial Balance and clearly mention the correctness / completeness of the related GL
Codes, any GL-SL mismatch at monthly internal, adequacy of provision of outstanding
liabilities at the end of each quarter end and certification of Trial Balance of IFV (NBFCs) .
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RfP Concurrent Auditor of IFV & VCF, SIDBI
D. Scope for Follow up & Monitoring
a) Verify whether Registration of charge(s) with ROC and CERSAI for all eligible cases has
been done.
b) Verify whether the ratings are approved and printouts of the same are available on record.
c) Verify whether demand advices are raised correctly and sent in time as per extant guidelines.
d) Verify whether validation of sanction / review of undisbursed sanctions has been carried out
as per extant guidelines.
e) To verify / review the interim disbursements / final security creations.
f) To verify exchange of credit Information with other banks
E) The CA will have to submit the following reports to the Management:
(i) Monthly reports covering Vertical's day-to-day operations including its core functions such as credit
appraisal, pre-sanction and post-sanction supervision and other operations towards finance availed by
them with regard to their correctness, compliance to the terms and conditions of sanction, post
disbursement, supervision, documentation, monitoring of business risks, compliance of Delegation of
Powers, adherence to regulatory, internal policy, procedure, guidelines, etc.
(ii) Any other related report as may be required by SIDBI from time to time
(iii) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a decision.
F) Average number of transactions to be checked on daily basis:
1. It is expected that there will be around 10-15 sanctions per annum and under each sanction there will
be around 3 disbursements.
2. There are 21 different customers as on date in our portfolio and repayments are received every month
from these customers. 5-10 new NBFC customers are proposed to be added.
3. There will be quarterly/ half yearly/ yearly/ reset of interest rates for most of the clients.
Reports:
The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.
The firm/ LLP will have to submit the desired/ prescribed reports relating to NBFC Operations.
Any other related report as may be required by SIDBI from time to time.
The above reports with regard to NBFC Operations should be submitted to the head of the Vertical,
Institutional Finance Vertical at Mumbai, both in soft and hard forms, within a week of the reporting
period for which the report pertains. Daily reports should be released at the end of the day to The
Chief General Manager, Institutional Finance Vertical at Mumbai, both in soft and hard form. The
formats of the reports would have to be devised, wherever required, by the firm/ LLP in consultation
with and approval of SIDBI.
SIDBI will prescribe structured formats for the audit reports and also stipulate the time limits
for submission of the reports. The audit formats would be reviewed periodically, as and when
required. The firm/ LLP should strictly adhere to the format and the time limit. SIDBI may
prescribe different periodicity for different reports of the operations.
24 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
Annexure III
Scope of Work - Institutional Finance Vertical (IFV), Mumbai
Part A - (MFI assistance / IMEF)
The main objectives and Work areas of the concurrent audit are as follows:
a) Verifying whether sanctions for advances and disbursement thereof is obtained from
competent authority.
b) Scrutinizing the completeness of documents submitted for availing advances and
other facilities.
c) Ensuring compliance of laid down systems, procedures and policies.
d) Examining books of accounts, records and / or registers to ensure that they are
maintained in accordance with the prescribed systems/reconciled with general
ledger.
e) Detection and arresting of leakage of income, if any.
f) To follow up with authorities to ensure timely rectification of irregularities reported
with regard to the operations of the vertical and rectified on the spot/ during audit
period itself.
g) Verify prompt, timely and regular submission of the periodical and statutory returns.
h) Any violation of procedure is brought to light.
i) Reporting any irregularity in working which may result in financial or other loss to the
Bank.
j) Feedback on regulatory compliances.
k) Any other areas on the operations of the Bank which are vital, in nature.
A. Broad scope of work
i. Whether the transactions or decisions are within the policy parameters laid down by
the Bank.
ii. Sanction and disbursement of loans & advances are within the policy parameters laid
down by the Bank. All the loan disbursements are to be checked / verified by the
concurrent auditors before actual disbursements and all the disbursement notes need
to be signed off by the concurrent auditors (CA Partner).
iii. Sanctions / disbursements are within the delegated authority
iv. Sanctions / disbursements do not violate the instructions or policy prescriptions of the
RBI / other regulators.
v. Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List /
IBA caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. is
done satisfactorily.
vi. DoP has been exercised properly and Post Sanction Reporting (PSR), wherever
applicable, is sent to Post Sanction Reporting Authority (PSRA).
vii. Security creation has been done properly. All the prescribed and necessary
documents are collected from borrowers.
viii. Verify whether all charges of SIDBI on the assets hypothecated are registered with
Registrar of Companies (ROC) / CERSAI Entry carried out.
ix. Pre-sanction /LoI/ Pre-disbursement conditions and Post Disbursement Conditions are
duly complied with. Deviations made, if any, are within the guidelines issued from
time to time/ requisite approval obtained for the same from the competent authority.
x. Verify the end use of term loan disbursed by the Vertical for the purpose it is meant
for.
25 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
xi. Verify whether visits to the beneficiary units have been carried out as per the
guidelines and observations, if any, bring to the notice of the authority of the Vertical.
xii. All the receipts have been properly accounted for/ appropriated as per Bank's
accounting policy.
xiii. All regulatory provisions/ guidelines are duly complied with (e.g. areas including TDS
and service tax / professional tax/GST etc).
xiv. Whether in all cases where the statements/ documents (Book Debt statement,
Balance Confirmation Certificate, Acknowledgment of Debt, Annual report etc.) are
not received even after a reasonable time, prompt action is taken by the vertical to
get the same.
xv. Verify whether there is any mis-utilisation of the loans and whether there are
instances indicative of diversion of funds.
xvi. Detection & prevention of revenue leakages in the operation of the Vertical through
close examination of income and expenditure.
xvii. Verify whether there are any borrowal accounts (other than those reported by the
Vertical) which are showing early warning signals or symptoms of sickness and/or can
be classified as NPAs. If so, ascertain the reasons therefore and analyse the steps
taken by the Vertical in the matter.
xviii. Verify whether the classification of loan assets of the Vertical have been done
properly and income recognition norms have been followed as per Bank's guidelines
and procedure/ RBI norms by the Vertical.
xix. Verify the updation of CIBIL data and report the status in the monthly audit report.
xx. Verify the details of flow of applications, time taken for appraisal of proposals,
pending applications etc. with the vertical and report the status in the monthly audit
report.
xxi. Verify whether interest rate is charged as per approved rate of Interest.
xxii. Any other critical area of operations not covered above
B. Accounting (MFI Assistance / IMEF)
a) The maintenance and balancing of accounts, ledgers and registers is proper.
b) Early reconciliation of entries outstanding in the Vertical with regard to inter-branch and
inter bank accounts, Suspense Account, Sundry Deposits Account, etc. Ensure early
adjustment of entries in the Vertical.
c) To ensure that all the transactions viz. receipts, payments, journal vouchers are
validated by proper instruments/ approval note, etc.
d) To ensure that all the accounting transactions are carried out in accordance with the
extant guidelines of the Bank.
e) To examine and verify the appropriations done by the Vertical office for the repayments
received during the month. The objective is to ensure that the appropriations done by
the Vertical is correctly captured in the system and are in order so that correct position
of overdues / dues / RPA etc. is reflected at the time of quarterly and annual closing of
accounts as on March 31.
f) To ensure that the CA Certified quarterly book debt statement from the borrower is
obtained in time. To scrutinize the book debt statements to ensure adequate MFI assets
are available to cover the exposure of SIDBI.
g) To check the correctness of upfront fee, interest / penal interest, etc.
h) To verify the correctness of security, Legal compliance, ROC search etc.
i) Safe custody verification as per extant guidelines.
26 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
j) Review of Trial Balance and clearly mention the correctness / completeness of the related GL
Codes, any GL-SL mismatch at monthly internal, adequacy of provision of outstanding
liabilities at the end of each quarter end and certification of Trial Balance of IFV (MFIs/IMEF) .
k) The CA shall be accountable, on its part, for wrongly verifying any document or
signing off disbursement notes or such other important documents based on which
the Bank takes a decision.
C. Scope for Follow up & Monitoring (MFIs / IMEF)
Monthly monitoring reports is being submitted by the assisted MFIs.
CA certified Book Debt statement and CA Certified Sample Verification reports have been
obtained as per extant guidelines to ensure end use verification.
End use verification of requisite sample size by bank officials post disbursement.
Periodical visit to the MFIs / field areas by bank officials as per extant guidelines.
Quarterly Book Debt statement being submitted as per extant guidelines.
Verify whether validation of sanction / review of undisbursed sanctions has been carried
out as per extant guidelines.
To verify / review the interim disbursements / final security creations.
To verify exchange of credit Information with other banks
Annual Review and Re-rating of the accounts as per guidelines has been done.
Nominee Director Reports are being submitted in time.
Safe Custody verification is being carried out by Vertical as per the extant guidelines.
Receipt of beneficiary's data from MFIs, follow-up end use verification visits and
inspections carried out as per the laid down policies / practice.
Receipt of Balance Confirmation Certificate (BCC) / Acknowledgement of Debts (AoDs).
Receipt of Annual report from the assisted MFIs.
Any mis-utilization of the financial assistance and whether there are instances indicative
of diversion of funds.
Detection & prevention of revenue leakages in the operations.
The above areas of operation are illustrative and not exhaustive.
(D) Reporting Requirements
The CA shall be accountable, on its part, for wrongly verifying any document or signing
off disbursement notes or such other important documents based on which the Bank
takes a decision.
The Firm / LLP will have to submit the following reports to the head of the Vertical:
(i) Reports relating to Operations in Vertical
(ii) Monthly reports covering Vertical's day-to-day operations including its core functions
such as credit appraisal, pre-sanction and post-sanction supervision and other
operations towards finance availed by them with regard to their correctness,
compliance to the terms and conditions of sanction, post disbursement, supervision,
documentation, monitoring of business risks, compliance of Delegation of Powers,
etc.
(iii) Monthly reports covering comments on adherence to regulatory, internal policy,
procedure, guidelines, compliance of Delegation of Powers and areas of audit as
indicated at para 4.1.
(iv) Any other related report as may be required by SIDBI from time to time.
27 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
(v) The CA shall be accountable, on its part, for wrongly verifying any document or
signing off disbursement notes or such other important documents based on which
the Bank takes a decision.
Part - B (IFV-PRAYAAS)
A) Application & Pre -Sanction :
Borrower must be an individual borrower associated with SHG / JLG or an existing
customer of Partner Institution (PI).
Application No., Batch No., and Date of Application to be cross verified with Customer
Hands Off. Application has to be scrutinised with attached documents for its
completeness and correctness. For e.g. Date of Birth of Borrower & Co-Borrower to be
cross checked with KYC documents, banks details to be cross verified with Bank
passbook / cheque etc.
Mandatory Due Diligence has been carried out by PI or SIDBI in r/o the Borrower &
Co-Borrower i.e. Credit report , CIBIL Report , UN Terrorist List and Central Fraud
Registry.
All the above searches to be scrutinized.
Present Loan outstanding of the Borrower, his monthly expenditure obligations,
income to be generated out of proposed assistance and proposed EMI mentioned in
the application form to be cross checked with Customer Hands Off.
Application form is duly signed by the Borrower / Co-Borrower.
KYC & Alternate KYC of Borrower & Co- Borrower, as per Officially Valid Documents in
respect of KYC compliance to be verified.
Documentary Evidence of Identity Proof and Address Proof obtained and verified.
KYC Stamp of "Verified from Original" affixed and authenticated by maker / checker.
B) SANCTION :
Whether Checker has seen the completeness of Application and also check whether
necessary due diligence has been carried out.
B1) ISSUE OF LOI :
LoI was issued complying the Pre-LoI condition(s)
LoI has been issued incorporating Key / Other terms of sanction as stipulated in term
sheet and as stipulated by the sanctioning committee.
C) DOCUMENTATION & FUNDS Released
Under PRAYAAS Scheme, only three documents are to be executed by the Borrower
before disbursement i.e Letter Of Intent, Demand Promissory Note and Loan
Agreement cum Deed of Hypothecation.
Documentation done as per the extant Legal Vertical Formats
Documentation executed on stamp papers, properly-stamped and with proper
testimonial clauses.
Variance, if any in address / spellings of name(s) in DPN, LA cum Deed of
Hypothecation, LoI as compared with KYC documents.
The Rate of Interest being charged is as per the sanctioned interest rate.
The Rate of Interest being charged is higher than the sanctioned interest rate.
28 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
Whether while effecting Funds Released / disbursement, the sanctioned limit to PI
may not get breached i.e. O/s under the Scheme may not be more than the
Sanctioned limit.
D) Follow up & Monitoring
Collections handoff have been acknowledged in Mobicule and same has been
approved in DFS
Matching of remittance with the aggregate due amount.
E) Commission Payment
Checking correctness of invoice and payment thereof through CVPC.
F) Any other issue
The following are also to be checked by CA:
The rating of the MFI has expired and fresh rating as stipulated in the terms of
sanction has not been obtained by the PI.
As advised in the terms of sanction, weaknesses observed in the COCA Report not
addressed by the MFI within the stipulated time.
Quarterly review of the Portfolio / operations, whether they have been undertaken.
Review of Trial Balance / balances of all GL codes, any SL-GL mismatch at monthly
interval and reporting to CAV.
Reports:
SIDBI will prescribe structured formats for the audit reports and also stipulate the
time limits for submission of the reports. The audit formats would be reviewed
periodically, as and when required. The firm/ LLP should strictly adhere to the format
and the time limit. SIDBI may prescribe different periodicity for different reports of
the operations.
The CA shall be accountable, on its part, for wrongly verifying any document or
signing off disbursement notes or such other important documents based on which
the Bank takes a decision.
**************
29 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
Annexure IV
Scope of Work - VCF Operations
Procedure to be followed once the case is sanctioned:
(i) To check the application form received from the Investment Manager (IM) seeking
contribution from SIDBI for Alternative Investment Funds (AIFs).
(ii) To verify the completeness and appropriateness of various certificates/ documents/
information submitted by the IM.
(iii) To verify the compliance of KYC guidelines and other Due diligence measures.
(iv) To verify the proper and correct entry of data/ information into the systems.
(v) To verify the compliance with eligibility parameters for sanction as per the extant guidelines
of the Bank/ as also with various guidelines issued by SIDBI, Government of India/SEBI and
other regulatory authorities in connection with contribution to Venture Capital Funds
(VCF's)/AIFs.
(vi) To verify the compliance with all extant guidelines and terms of sanction.
(vii) To verify that the terms of sanction are captured while conveying sanction to the Fund
Manager.
(viii) To verify contribution agreement executed by IM & Trustee.
(ix) To verify the drawdowns/disbursement.
(x) To verify accounting entry into the system related to drawdowns and distributions.
Monitoring and Post disbursement stage
(xi) To verify the Periodic/ recurring Compliance, if any, related to sanction.
(xii) To verify the compliance of all applicable internal, RBI, SEBI/GOI guidelines relating to VCF
operations
(xiii) To verify the periodic MIS/data/information being submitted to various authorities internally as
well as externally.
(xiv) Review of Trial Balance and clearly mention the correctness / completeness of the related GL
Codes, any GL-SL mismatch at monthly internal, adequacy of provision of outstanding
liabilities at the end of each quarter end and certification of Trial Balance of VCF Operations.
(xv) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.
Reports:
(i) Monthly report covering the operations of VCF.
(ii) SIDBI will prescribe structured formats for the audit reports and also stipulate the time limits
for submission of the reports. The audit formats would be reviewed periodically, as and when
required. The firm/ LLP should strictly adhere to the format and the time limit. SIDBI may
prescribe different periodicity for different reports of the operations.
30 | P a g e
RfP Concurrent Auditor of IFV & VCF, SIDBI
(iii) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.
**********
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Annexure- V
Volume of work
A. IFV, Mumbai ( Refinance to Banks / SFBs / SFCs/ SIDCs / Prayaas, NBFCs, MFIs, )
i) Average no. of transactions in Refinance to Banks / SFBs / SFCs / SIDCs / SFBs
a) The total no. of refinance disbursement made during the FY 2019 were approximately
100. Accordingly, it is expected that no. of disbursements during FY 2020 would be
approximately 125 i.e. average number of transactions are 1 in every 2 working days
during this FY.
b) The business target for (Banks, SFCs, SIDCs, SFBs ) for FY 2020 is ` 126659 crore
which encompases disbursement of ` 65,652 crore and repayment of ` 55,186 crore,
besides follow-up and monitoring works.
ii) Average No of transactions to be checked - NBFCs
a) It is expected that there will be around 10 to 15 sanctions per annum and under each
sanction, there will be around 3 disbursements.
b) There are 21 different customers as on date in our portfolio and repayments are
received every month from these customers. 5 to 10 new NBFC customers are proposed
to be added.
c) There will be quarterly / half yearly/ yearly reset of interest rates for most of the clients.
(iii) Average No of transactions to be checked- MFI Assistance / IMEF / PRAYAAS
[a] Under MFI Assistance & IMEF :The total number of disbursements transaction
under MFI / IMEF assistance during FY 19 were approximately 26. Disbursement
trends is expected to be in similar lines for the current FY 2020.
[b] Under PRAYAAS :- From 1st April, 2019 till May 30, 2019, around 1483
proposals have been sanctioned and more than 1450 loans have been disbursed
for PIs. The outstanding as on June 2019 is approximately ` 12 crore. Bank has
also engaged 7 more PIs and expecting an outstanding of ` 250 crore by March
31, 2020. Average likely flow of applications per month and on per working day
are given below:
Expected O/s as on 31.03.2020 ` 500 crore
Expected disbursement per month ` 50 crore (Avg.)
(Remaining period of 10 months in current FY )
Average ticket size of Application ` 75000
Likely no. of applications to be received per month 6600
Avg. No of working days in a month 20
Average likely Flow of applications per day 330
B. VCF, Mumbai under non-treasury investment transactions
It is expected that the work would require about 250 - 300 hrs of work in a year. However, the
same may not be evenly distributed throughout the year.
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10. Technical Evaluation Procedure of the applicants:
The technical capabilities of the applicants with regard to audit of the operations of
Institutional Finance Vertical (IFV) and Non-treasury Investment Transactions of Venture
Capital Fund (VCF) and Associate Institutions Cell (AIC), Mumbai, would be evaluated
based on the following criteria and weightage:
10.1 Technical Evaluation Criteria for Operations pertaining to IFV & VCF, Mumbai.
10.2 Pre-Requisite for Applying
The Applicant should
Furnish proof of Valid registration/ Certificate of Practice from the Institute of
Chartered Accountants of India (ICAI).
Be a Partnership firm of Chartered Accountants with minimum 3 partners of
which at least 2 partners should be FCA(s). At least one partner should have a
continuous association with the firm of a minimum of 5 years and another
partner should have a continuous association with the firm of a minimum of 3
years. The details of each partner including experience, qualification etc., and
their Registration Number with Institute of Chartered Accountants of India
(ICAI) to be furnished as documentary proof.
Has Minimum five years of previous track record of carrying out concurrent
audits in other Financial Institutions / Public / private Sector Banks" (with
documentary proof).
CA firm has its HO or Branch office at Mumbai.
Without compliance of the above pre-requisites, the applicant will not be eligible for
applying.
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10.3 Technical Evaluation Criteria for Concurrent Audit of Operations pertaining to
IFV and non-treasury investment transactions of VCF, Mumbai. (Rating Criteria)
Rating Chart
Maximum
Sl.
Criteria Marks
No.
(Weightage)
i Year of establishment of Chartered Accountant firm / Limited Liability
Partnership (LLP) of Chartered Accountants.
Upto 5 years 10 Marks 20
5 to 10 years 12 Marks
10 to 15 years 15 Marks
More than 15 years 20 Marks
ii. Firms/ Liability Partnership (LLP) of Chartered Accountants with minimum 3
partners of whom at least two should be FCA. At least one partner should
have a continuous association with the firm of a minimum of 5 years
30
and another partner should have a continuous association with the
firm of a minimum of 3 years.
- (20 Marks)
1.5 marks to be awarded for each additional partner (over and above 3
partners) of the firm and 01 mark each for full time CA employee, who
have been with the company for more than 1 year with cut off date as
31/10/2019. (Maximum marks - 10)
iii Minimum five years of previous track record of carrying out concurrent audits
in other Financial Institutions / Public / private Sector Banks (with 30
documentary proof) 20 Marks
In addition to the above, firm having previous track record in:
i) carrying out such audits in other Financial Institutions / Public / Private
Sector Banks mainly in the area of credit dispensation under MSME. (with
documentary proof) (Additional 5 marks).
carrying out such audits in other Financial Institutions / Public / Private
Sector Banks mainly in the area of financing to NBFCs / Refinance to
Banks. (with documentary proof) (Additional 5 marks).
iv. Whether the firm / LLP empanelled with RBI as
Statutory Central Auditor 10 Marks 10
Statutory Branch Auditor (Category I) 7 Marks
Statutory Branch Auditor (CategoryII) 5 Marks
(with documentary proof)
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RfP Concurrent Auditor of IFV & VCF, SIDBI
v. Availability of suitable infrastructural facilities including office set up, adequate
manpower and permanent manpower at either Head Office or full fledged
Branch Office at either Mumbai / Navi Mumbai / Thane districts. 10
Branch 5 marks
Head Office 10 marks
Maximum technical score 100
***************
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Appendix
10.4 Information to be provided for Technical Evaluation etc.
a) Chartered Accountant Firm/ LLP Details:
Sl.
Requirements Remarks
No.
1 Name of the Chartered Accountant Firm / LLP with year of establishment.
2 Registration Number / Certificate of Practice from the Institute of Chartered
Accountants of India (furnish documentary proof, Registration should be
valid).
3 Previous Track Record of carrying out concurrent audit in Financial
Institution / Public / Private Sector Banks in the area of financing to NBFCs/
Refinance to banks. In addition to the above, previous track record of
carrying out concurrent audit in FIs/ Public/ Private banks in areas:
a) Credit dispensation to MSMEs
b) Financing of NBFCs / Refinancing to Banks.
Details may be given as per Table (A)
4 Details of every partner including experience, qualification etc. and their
Registration number with ICAI (furnish a detailed list of all the partners)
Age
Sl. Name of the (completed Education Period of
Experience Association with
No. Partner year as on Qualification the firm
01/11/2019)
5 Minimum five years of previous track record of carrying out concurrent audits
in other Financial Institutions / Public / private Sector Banks (furnish
documentary proof)
6 Whether the firm / LLP empanelled with RBI (furnish documentary proof).
7 Availability of suitable infrastructural facilities including office set up (Branch
office / Head office at Mumbai / Navi Mumbai / Thane districts may be
specifically indicated), adequate manpower who are specialized in the area
of audit in other Financial Institutions / Public / private Sector Banks.
Competence and qualification of key professional staff who shall carry out
the assignment in a time bound manner (furnish a detailed list of all the
skilled / semi skilled employees / staff).
8 Whether the audit firm / LLP or any sister/ associate concern is conducting
the statutory audit of SIDBI or Concurrent Audit in any of SIDBI branches /
HO Verticals.
Note: All the relevant details & documentary evidence, etc. are to be furnished. The above is only a format.
Information may be submitted in additional sheet(s) as may be required.
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RfP Concurrent Auditor of IFV & VCF, SIDBI
i. The following declaration/ undertaking shall be furnished by the firm:
a) The firm/ LLP shall agree to execute undertaking of fidelity and secrecy on its letter head
in the format prescribed by the Bank, if the contract assigned
b) That the information submitted is complete in all respect and true to the best of our
knowledge.
c) A declaration to be furnished by the firm that credit facilities availed by the firm or
partners or firms in which they are partners or directors including any facility availed by a
third party for which the firm or its partners are guarantor/s have not turned or are
existing as non-performing assets as per the prudential norms of RBI. In case the
declaration is found incorrect, the assignment would get terminated besides the firm
being liable for any action under ICAI/ RBI guidelines.
d) The firm / LLP must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future accept
professional relationship with any of the borrowers of SIDBI during the period during
which the firm / LLP acts as the concurrent auditor for SIDBI.
e) Any other terms and conditions of the assignment would be decided by the Bank on a
case-to-case basis.
Note: Formats for the above are given in later pages.
a) Details of concurrent audit
Year of Audit/ Period (From -
Sr. Name of the
Branch/HO To) [Data required for the last
No. Bank/FIs
10 years of your firm]
b) Details of Statutory Central Audits (SCA)/ Statutory Bank Auditor (SCB) of
various Banks
Sr. Name of Branch/HO
the Specify SCA/ SCB Year of Audit/ Period (From - To)
No. (Category I/II) [Data required for the last 10
years of your firm]
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RfP Concurrent Auditor of IFV & VCF, SIDBI
Declarations:
All the applicants should submit their bid along with the following declarations
and undertaking
(i) Declaration to be furnished in the letter head of the firm/ LLP.
We hereby declare that the information submitted above is complete in all
respect and true to the best of our knowledge. We understand that in case any
discrepancy or inconsistency or incompleteness is found in the information
submitted by us, our application is liable to be rejected.
Date: Authorised Signatory
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RfP Concurrent Auditor of IFV & VCF, SIDBI
(ii) Declaration of Eligibility
I/ We _______________________________Chartered Accountants hereby
declare that I/ We comply with the eligibility conditions specified, established under the
Chartered Accountants Act, 1949, and I/ We declare that:
None of the Partners of the firm do not have any disciplinary proceeding under the
Chartered Accountants Act, 1949 pending against them or any disciplinary action under the
Chartered Accountants Act, 1949/ penal action under any other law taken/ pending against
him/ her.
Credit facilities availed by the firm or partners or firms in which partners or directors,
including any facility availed by a third party for which the firm or its partners are guarantor/s,
have not turned or are existing as Non Performing Assets as per the prudential norms of
RBI.
The firm does not have any professional relationship with any of the borrowers of SIDBI nor
will it in future accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm acts as the concurrent auditor for SIDBI.
It is further confirmed that the firm is not the Statutory Auditor of Small Industries
Development Bank of India (SIDBI).
None of the Partner of the firm hold any shares or other securities (including options or
futures) in Small Industries Development Bank of India (SIDBI).
Our Firm has conducted / has not conducted concurrent audit of _____ (BO) / ______ (HO
Vertical)/ _____ (other offices of SIDBI) during the period _________ . (Give status since
01/11/2014).
Our Firm will continue to satisfy the eligibility norm for appointment of Chartered
Accountants as Concurrent Auditors as prescribed by the Bank from time to time.
I/ We understand that any breach of the provisions regarding eligibility shall
be considered as gross negligence and may result in appropriate action under the Chartered
Accountants Act, 1949.
For ________________________
Chartered Accountants
Place: ______________
Date: _______________
Partner
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