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Northern Coalfields Limited, Madhya Pradesh
January, 02nd 2020
     Northern Coalfields Limited
                    (A Mini Ratna Company)

Ref.No. NCL/SGR/IAD/Internal Audit/19/205 dated 26.12.2019

                        Open e-Tender

                  Tender Document
      For Selection,Empanelment and Appointment
      of Internal Auditor for a period of 3 years from
      2020-21 to 2022-23

                Northern Coalfields Limited
                   PO-Singrauli Colliery
                     Pin code-486889
                     Madhya Pradesh

                            Page 1 of 52
                           INDEX   Table of Contents                        Page no
1        Notice Inviting EoI                      3-4
1        Invitation for Bids                      5-7
2        Instructions to bidders                  8-12
3        Scope of work                            13-35
4        Terms of reference of Internal           36-41
5        General        terms            and      42-44
6        Application Format(Annexure-B)           45-46
7        Letter of Bid(Annexure-C)                47-48
8        Format for authorization to DSC          49
         holders( Annexure-D)
9        Selection Criteria(Annexure-E)           50-52

                                   Page 2 of 52
Sub:-Notice inviting Expression of Interest for Selection, Empanelment and
Appointment of internal auditor for a period of 3 years from FY2020-2021 to

Northern Coalfields Limited having its registered office at Singrauli-486889,MP
invites EOI in E-mode from eligible Chartered Accountant/Cost Accountant or a Firm
/LLP of Chartered Accountants/Cost Accountants registered with Institute of
Chartered Accountants of India/Institute of Cost Accountants of India for conducting
Internal Audit.

The above audit firms(Including LLP) must submit their offers/documents online on
CIL's e-procurement portal (for details, visit link"
Bidders Manual Kit" on home page                  of CIL's     e-Procurement portal latest by 11.01.2020 on or before11:00 Hours[IST]

The detailed EOI document and Corrigendum/addendum, if any, shall be available in
the    CIL's    e-Procurement      portal,  NCL         and         Central        Public        Procurement
portal( downloading and submission of offer/documents.

                                       Page 3 of 52
: -            2020-2021                    2022-23  3  

 |                                        /  
/                   ,  -  

         ()                                           - (       ,                  
" )                    /                                      /
   11.01.2020      11:00 Hours [IST]

                               /   ,    ,    - , NCL 
      (   /   

                                 Page 4 of 52
                            Invitation for Bids (IFB)

1) Northern Coalfields Limited, a Miniratna Company (A Govt.of India Undertaking)
   having its registered office at PanjrehBhawan, PO-Singrauli Colliery,District-
   Singrauli, Madhya Pradesh, Pin Code-486889, India, invites online bids through
   e-tender on CIL's e-procurement portal ( for
   empanelment                   of              Practising                Chartered
   Accountants registered with the Institute of Chartered Accountants of India /
   Institute of Cost Accountants of India for conducting Internal Audit in respect of
   Projects/Units/Headquarter Units of the Company for which 12(twelve)
   Auditors( including Lead internal auditor) will beselected for a period of 3 years
   from 2020-21 to 2022-23, wherein only one internal audit firm will look after
   the job of two service units viz Nehru ShatabdiChikitsalaya& Central Workshop
   as per the prevailing practise.The selected candidates have to conduct monthly
   audit as specified in Scope of Audit and Terms of Referenceof EoI.

2) All supporting documents regarding Application Format (Annexure-B), such as
   Firm Profile, Constitution Certificate, Certificate of Practice, Membership
   Certificate, Mark Sheets/Certificate of IPCC/Inter Examination, Appointment
   lettersandStatementofAccounts(inrespectofSI.13ofApplicationFormat),etc. duly
   signed with seal must be enclosed. In absence of documentary evidence, no
   marks will be accorded to a particular criterion, without assigning anyreason.

3) A declaration to the effect that all the terms and condition of tender has been
   accepted unconditionally must be submitted along with theapplication.

4) ThecompleteoffersincludingApplicationFormat,indicatingcurrentstatusason
   dateofsubmissionoftender,shouldpreferablybetypedintheletterheadofthe firm. No
   hand written offer will beaccepted.

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 andseal.

6) Northern CoalfieldsLimitedreservestherighttorejectoracceptorwithdrawthetenderin
   full or part, as the case may, be without assigning any reasons thereof. No
   conditional offer will beaccepted.

7) The complete tender document shall be available in the CIL's e-
   procurement portal https://coalindiatenders.nic.infor downloading and
   submission of offer. The complete tender document shall also be available
   on Northern Coalfields Limited website www.nclcil.inand Central Public
   Procurement portal ( for downloadingonly.

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 5 of 52
9) Details of tender:-

      1     Tender No.                            Tender No.: NCL/SGR/IAD/Internal
                                                  Audit/2019/ Dated
      2     Type of Tender                        Open Domestic Tender
      3     Estimated value          of           Rs.6,62,02,500.00
      4     Tender Fee                            NIL
      5     Earnest        Money                  Not Applicable
      6     Subject of Tender                     Selection, Empanelment and
                                                  Appointment of Internal Auditor for a
                                                  period of 3 years from 2020-21 to
      7     e-Publishing date of                   27.12.2019
      8     Downloading of Tender Document
            (i) Starts on                         27.12.2019 from 11:00 Hours[IST]
            (ii) Closes on                        11.01.2020upto 11:00 Hours[IST]
      9     Seeking Clarification
            (i) Starts on                         27.12.2019 from 11:00 Hours[IST]
            (ii) Closes on                        01.01.2020upto 11:00 Hours[IST]
      10    Online Submission of Offers
            (i) Start Date and Time               27.12.2019 from 11:00 Hours[IST]
            (ii) Last Date and Time               11.01.2020upto 11:00 Hours[IST]
      11    Due date of Opening of                13.01.2020upto 11:00 Hours[IST]

10) The offers have to be submitted online through the CIL's e-procurement portal 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 6 of 52
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
   tointernetconnectivity,lawandorder,strike,bandhetc.TheCompanyshallnotbe responsible, if bids could
   not be uploaded due to such local problems at the bidder'send.

13) The interested bidders may obtain further information from the office as under:

                             GM(Finance/Internal Audit),
                              Internal Audit Department
                             Northern Coalfields Limited
                                 PO-Singrauli Colliery
                            Fax: 07805-266236/266437

                                                Page 7 of 52
                       Instructions to Bidders (ITB)

1. Requirements for participation ine-tender:
  In order to submit the online offer on CIL's e-Procurement portal the bidders should meet the following
  a) PC connected with Internet (For details, visit link "Bidders Manual Kit"
     on       home      page      of      CIL's      e-Procurement       portal It will be the bidder's responsibility to
     comply with the system requirements i.e. hardware, software and
     internet connectivity at bidder's premises to access the e-Procurement
     website. Under no circumstances, the Company shall be liable to the
  b) Enrolment          with        CIL's        e-Procurement        portal, 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
     bidderhimselforitsdulyauthorisedpersonhavingDSCindicatingname         of
     firm as that of bidder. It shall be the responsibility of the bidder to
     ensure that they get registered with the CIL's 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 Root
     Certificate ofCCA.
2. Help for participating ine-tender:
  The detailed method for participating in the e-procurement is available on
  links "Help for Contractor" and "Bidders Manual Kit" in CIL's e-
  Procurementportal.Thebiddersmayalsoseekhelpfromthehelp-deskon          the
  numbers available on CIL's e-Procurement portal. All queries will be
  answered in English / Hindionly.
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.

                                      Page 8 of 52
4. Cost ofBidding:

  The bidder shall bear all costs associated with the preparation and online
  submission of bid and the Company will in no case be responsible orliable

5. Clarification of Bid Documents and Last date for submission ofBid:
  A prospective bidder may seek clarification online through CIL's 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. Company's response
  shallalsobeputontheCIL'se-procurementportal.Bidsmustbesubmittedalong with
  all supporting documents in the CIL e-procurement portal online before or up to
  the scheduled time and date as mentioned inITB.

6. Due date of opening ofBid:
  Bidswillbeopenedonlineatthescheduledtimeontheduedateofopening           as
  mentioned in IFB. In the event of the scheduled due date of opening of
  Majeure reasons, the due date for opening of bids will be the next working
  day at the scheduledtime.
7. Extension of due date oftender:
  Northern                                                           Coalfields
  se 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 afteroneextensionofduedateby2(two)days,lessthan3bidsarereceived,
  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
  dates shall not be made. In case no offer is received after granting two
  extensions (2 days + 5 days), the tender will becancelled.

8. Language: The language of the bid shall be English. All documents enclosed
   language, self-attested English translation with signature and stamp of the
   authorised signatory of the bidder who has signed the LOB, shall befurnished.

9. Earnest Money Deposit: NotApplicable

                                        Page 9 of 52
10. Letter of Bid (LOB): The format of Letter of Bid (LOB) as given at Annexure-
       Cwill be downloaded by the bidder and will be printed on Bidder's 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 "Signed & 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
       letterofthe bidder for the submitted bid.

       Thecontentofthe"LetterofBid"uploadedbythebiddermustbethesame 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
       Thesedocumentsaretobeuploadedonline inthe specified folderprovided in
       the e procurementportal.

       Note:ThepersonwhohassignedLetterofBidphysicallyshouldbidonline 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
       stamppaperdulynotarized(asperAnnexure-D)bythepersonsigningthe LOB
       in favour of person bidding online is required to be uploaded. This
       document is to be uploadedonline inthe specified folderprovided in the e

11.       Methodology for online Submission ofBids
       The offers are to be submitted online through CIL's e-procurement portal in 1
       (one) cover (Cover - I `Technical Bid'). Authenticated and Scanned copies of
       documents shall be uploaded online in the specified folderprovided in the e

       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
       shallbeaccepted.OfferreceivedthroughPost,Courier,FaxorE-mailwill       not

12.       Evaluation ofBids
 i.     Afteropeningofthebid,thedocumentssubmittedbyfirmswillbedownloaded            and
        shall be put up to the evaluating Committee. The Committee will examine the
        biddersuploaded 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 nextlevel.

 ii.    Bidswhichhasnotbeensubmittedwithvaliddocumentswillnotbeconsidered             for
                                           Page 10 of 52
          After evaluation of the bidders uploaded documents, shortfall documents in
          connection with the uploaded 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 firm's 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 e-
         mailandSMSwillnotbeacceptedasareasonofnon-submissionofdocuments 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 specifiedperiod.

 iv.     The offers will be evaluated in accordance with the Selection Criteria for
         engaging       Internal       Auditors      mentioned        in      Annexure-
         Eonthebasisofdocumentsuploadedbyfirmonline.Thefirmisnot           required    to
         submit hard copy of any document through offline mode. Any document
         submitted offline will not be given any cognizance in the evaluation ofoffer.

  v.     In case the firm submits requisite documents online as per tender document,
         then the firm will be considered eligible for nextlevel.

  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 berejected.

 vii.    In case none of the firms complies the technical requirement, then necessary
         action as deemed fit by management will betaken.

viii.    It is responsibility of firms to upload legible/clearly readable scanned copy of
         all the required documents as mentionedabove.

 13. Scanned copy (PDF) of supporting documents duly signed and stamped
        shouldbeuploadedintheFolderprovidedforthispurpose.However,NCLreserves the
        right to verify such documents with the original, if necessary. Bidder has to
        submit the originals to NCL ondemand.

 14. Theoffershouldbesubmittedstrictlyaspertheterms&conditionslaiddown        in the
        tender document, failing which the offer will be liable for rejection. No

                                             Page 11 of 52
15. NCLreservestherighttorejectoracceptorwithdrawthetenderinfullorpart as the case
   may be without assigning reasonthereof.

16. NCLalsoreservestherighttoshortclosethecontractincaseofbreachofterms          and
   conditions of the contract by thetenderer.

   All notices to the bidders shall be sent by e-mail only during the process of
   finalization of tender by NCL as well as e-procurement portal. Hence
   mailidisprovided/updatedduring 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 (ifany).

18. Modification of the submitted bid shall be allowed online only before the
   deadlineofsubmissionoftenderandthebiddermaymodifyandresubmitthebid online
   as many times as he may wish. Bidders may withdraw their bids online within
   the last date and time of bidsubmission. Hence, the last documents received
   shall be considered for evaluation.

19. No modification of the bid or any form of communication with NCL or
   allowed and even if submitted, they will not be considered by theNCL.

20. In case of any technical mistake in online offer and NIC confirming thatthere is
   no fault from their side then NCL will not be held responsible for the

21. General terms and conditions mentioned at Annexure-A must be signed by the
   partner of the audit firm mentioning name of the partner,membership number
   and firm registration number. No deviation of the general terms and conditions
   is acceptable.

Encl.: Annexures

                                        Page 12 of 52
                                              SCOPE OF WORK

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.


           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-Hand to report variations, if
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
    d) Checking of daily and monthly coal production from outsourced, if any.
    e) Checking of coal loaded in tubs and payment to piece rated workers (in case of manual
    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
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
1.1.2. (c)Overburden - Departmental

                                                   Page 13 of 52
    i)    Checking of Shift-wise Over Burden (OB) removal as per Form 1-B,
    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 Washery:
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 underutilization if
1.1.5 Percentage of yield and comparison of the same with the target and last year's
          figuresand reasons for variance, if any.

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 tograde slippage, deduction due to non-computerized
         Weighment, quantity deduction and any other.
2.4 Report on overloading/under loading (quantity and amount) and Demurrage paid to
         (a) For demurrage charges incurred, to report on -
          (i) Whether indent for wagon placed with Railways are more than the capacity of the
          (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

                                                     Page 14 of 52
      done       contractually? If so, whether such demurrage has been recovered from
      contractor's bill?
2.5 Report on Maintenance of records for road 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 departments
       (b)   Date of loading
       (c)   Date of receipt of RR
       (d)   Date of billing
       (e)   Date of dispatching the bill.
2.10 Report on pending 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 disputed and undisputed dues of Sundry 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 and all BG have
     been verified from the Bank through post or through SFMS (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 tax credit availed correctly and 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 and
     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 report quantity and value thereof.
2.18 To check whetherdebit/credit notes have been issued within 30 days of receipt of analysis
     report to the customers for settled case of grade variance etc., if not report thereof.
2.19 No. of complaints and grievances received from customers and settled during the period/
                                                  Page 15 of 52
2.20 Checking of Delivery Orders for coal are in accordance with Fuel Supply Agreement or any
      other agreement/order and full amount is received from the customers.
2.21 Checkthe records for supply of coal through washery mode is as per FSA or any other
      arrangement and approval of competent 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 and in case
      excess amount, refunded timely, if not report thereof.
2.24 Checking of EMD amount received on e-auction of coal and adjusted 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 under loading charges calculated as per the Railway guidelines and allowed
      as per the provisions of FSA.
2.28 Report on the under loading cost and quantity and reason thereof, its comparison with
      corresponding period of previous year and previous month.
2.29 Railway Siding:
   a) Checking of Shift-wise coal received at Railway Siding and despatch,
   b) Checking of daily report of coal received at Railway Siding and despatch,
   c) Checking of monthly report of coal received at Railway Siding and dispatch, difference if
       any to report.
3.Checkingof Quantitative reconciliation:
      Opening stock, production, off-take (Dispatch + own consumption) and closing stock as
      per production report and compare the same with Form "H" and variation, if any, should
      be reported.
       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.

4.1    Analysis of OMS.
      a)   Checking of overall OMS and comparison with previous month & target and report
      b)   Checking of departmental overall OMS vis-a-vistotal overall OMS and report thereon.

                                                 Page 16 of 52
      c)    Checking of OMS for departmental coal production and outsourced coal production
            and report thereon.
      d)    Checking of Loader's OMS (Underground) and comparison with previous month &
            target and report thereon.

5.1    MANPOWER:
   a) Checking of actual deployment of manpower with the approved manpower. Report on
       short/excess manpower and report thereon, if possible discipline wise. Also to report on
       gainful utilization of surplus manpower, if any.
   b) Checking of diversion of piece-rated workers in time-rated jobs, number of such cases
       and whether approval of competent authority is taken for such diversion, if not report
   c) Checking of Absenteeism statement with the Attendance Register, if variance report
5.2   MACHINES (HEMM, CHP, SDL, LHD, CM, Surface Miners, High Wall Equipment,
      Power Support Longwal etc.):
5.2.1 Checking of Monthly Performance of the HEMM and UG machines with respect to Last
       Year's Actual and with previous month.
5.2.2 Checking of HEMM and UG Machinesunder 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

5.2.3Report on HEMM and 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 and UGmachineswhich 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 under audit.
      iv. Checking of Machines surveyed off and grounded during the period under audit.
      v. Checking of productivity of the machines and in case it is less than the norms, report
5.2.4 Maintenance of Logbooks of HEMM and 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,

                                                  Page 17 of 52
             c) Hour/service meter of the machines are in working order, if not working, report
             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.
      iii.   Checking the performance of individual machine from logbook viz. working hours,
             breakdown hours, available hours, progressive hours on test check basis and report
      iv.    Checking of time lag between the date of issue of main spares and date of itsfitting in
             the machine.
5.3    Burnt Oil:Checking of section wise burnt oil received and disposed.

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 completed within time schedule if delayed
       report thereof and checking of amount charged for jobs and bills raised, test check.

5.6    Rehabilitation of Equipment
       i.     Report on the machines rehabilitated and completed 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.

6.1 Checking of statutory records required as per rule, if not report thereof.
6.2 Checking of Actual powder factor separately for Coal and OB party wise and compared
      with benchmark.Tocheck 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 and OB (For
      Powder factor calculation, total OB should exclude loose un-blasted OB and 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 comparison of Powder factor and Detonator factor with norms, previous month
      and previous year's 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.

                                                   Page 18 of 52
7.1 Checking of records for receipt, issue &stock of support material.
7.2 Checking of consumption of all underground support and safety material e.g. timber, steel
      bolt, roof bolt, cement capsules etc. is vetted by the Safety department.

8 OIL & LUBRICANTS (earlier POL):
8.1 Checking of internal control regarding receipt, issue & stock of POL.
8.2 Physical verification of quantity of diesel on test check basis in tankers as well as storage
      tanks and report thereof.
8.3 Consumption of diesel perCuM of composite production in Open Cast Projects (excluding
      production by Dragline) and comparison with CMPDIL norms for specific diesel
      consumption and previous year's figures, report on variance.
8.4 Consumption of diesel per working hour of the machine and comparison with previous
      month and previous year's figure and report thereof.
8.5 Report on consumption of POL ­ volume and price variance.
8.6 Report on short supply of HSD and 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 IOCL as per the agreement between CIL &

9.1    Report on consumption of Power per unit of production and comparison with previous
       month and previous year's.
9.2    Report on contract demand (CD) of power and actual contract demand utilized.
9.3    Report onpenalty 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
       and domestic consumption, if not report thereof.
9.6    Report on Energy Audit and its compliance.
9.7    Report on Power Factor and comparison with previous month and previous year.

                                                 Page 19 of 52
10.1 Utilisation of Fund:
    a)Checking of budgetary control for indenting, release and utilization of funds under
         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 and 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/NEFT.
    e)         Checking of payment made through account payee cheque or demand draft,
               whether approval from competent 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 and 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
10.3 Checking of balances of subsidiary ledgers with General ledger and any variance report
10.4 To report on the age-wise break-up of all advances & receivables appearing in balance-
         sheet on quarterly basis. Also to report 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 whether payment is made to MSME
         suppliers/contractors within 45 days of acceptance of their bills.
10.7 Verification of Investment of Surplus Fund:
         (a)     Whether CIL Deposit Policy, as approved by the Board is being followed?
         (b)     Opportunity of Investment of surplus fund in best possible alternatives.
         (c)     Timely realization of Investments and credit to proper accounts.
         (d)     Reinvestment after maturity of the Term deposits/Mutual funds in time.
         (e)     Timely investment of surplus fund and report if any idle fund not invested.
         (f)     Checking of Fixed Deposits 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 and Security Deposits

                                                    Page 20 of 52
        from contractors/ suppliersare accounted for and deposited timely in the bank, if not
        report thereof.
10.9 Bank Guarantee: Checking for-
            (a) To check the procedure regarding acceptance, custody and disposal of bank
               guarantee etc. in accordance to the provision laid down under Finance
               manualsand 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?
            (c) Whether Bank Guarantee has been properly recorded and realized in case of
            (d) Whether genuineness of BankGuarantee 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 Renewable Group Term
          Assurance (OYRGTA) policy and 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 empaneled
10.13     Report on Trade Payables outstanding more than 3 months.
10.14     To verify that supply order /work order are signed by the authorized officer
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 laptop/tab 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 personal 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 &
                                                  Page 21 of 52
           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 & Conditions of the
       (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.
      (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.
10.21 To check interest due from LIC, Electricity dept , Escrow account with Bank for mine
closure plans and other.
10.22 Reporting as unreconciled balances.
10.23 To check recovery/deduction are made from security agencies against theft incidences
as per agreement.

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
      and services?
   3. Whether additional places of business within a state are added in the registration
11.2 Invoice verification:
   1. Whether invoice has all the prescribed particulars as required under Section 31 and
      rules made thereunder?
   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 and 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:
                                               Page 22 of 52
  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 has 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
11.5 TDS on GST:
  1. Whether TDS on GST deducted as per GST Law and timely payment of TDS?
  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 under 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 other
     demands created?
  4. Any adverse remarks by Statutory Auditor has been raised and whether those are
   a. Checking of Purchase orders placed are as per Purchase Manual and competent
      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

                                                 Page 23 of 52
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 consumption pattern of last 3 years has
     been obtained from both Regional & Central Stores before raising indent for any
e. Report on delay in placement of supply orders from the date of approval of indent
     beyond 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 and Spares) with age and reason for non-
     adjustment 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.
k. Checking of procurement of centralized items at Area/ Project/ HQ is done with proper
     justification and with the approval of competent authority.
l.   Checking of deletion or insertion of terms and conditions in the standard NIT, whether
     proper justification has been recorded and competent approval has been obtained.
m. To check that the e-tenders are floated and reverse mechanism has been followed.
a. To report whether minimum stores requirement is being maintained for :
     (i)business continuity
     (iii)different statutes applicable to Mines.
b. To report on comparison of stock levels across central/regional/mine stores for analysis
     by Lead Internal Auditor.
c. To report if in the opinion of Auditor excess stock is being kept considering the usage.
d. The Internal Auditor will examine and report whether the observations of last Audit
     Report has been suitably addressed or not.
e. To check & verify proper maintenance of records such as Day Book, Stores Receipts,
     IssueVoucher, Kardex posting, Store Return Voucher, etc. To check that the entries are

                                                Page 24 of 52
     made on daily basis in computer system. In case OMMS (On line Materials Management
     System), all entries are made immediately to check and report.
f. Physical verification of certain items of stores at random and basis of sample sizeand
     report the exception, if any.
g. Checking of claims lodged for receipt of short material and damaged material and
     whether settled, pending such cases to be reported.
h. a) Checking of non-moving and slow-moving store items and to check the details
     thereofhas been circulated to other Areas and Headquarters for gainful use at other
     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.
i.   Checking of records maintained for scrap& disposal thereof.
j.   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.

k. Checking of reconciliation of materials issued from the Main Stores tally with
     thatreceived in the Charge-off Stores.
l.   Checking of reconciliation between Price Stores Ledger and Financial Ledger is done
     timely and accounted for quarterly/ yearly.
m. To check that the obsolete and non-moving stores & spares have been identified and
     accounted for.
n. 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.
o. In case of any agreement of buy-back of stores, the Auditor has to certify whether the
     process has been followed.
p. Checking of errors in Store ledger and report thereon.
q. Checking of inspection reports on test check basis of material and the same is in
     conformity with provision in the Supply Order. Reporting on List of those material lying
     in stores waiting inspection for a period exceeding one month.
r. Checking of records of used tyres, battery and other recoverable items against the issue
     of new item.
s. Checking of records of warranty spare parts/ spare parts provided with equipment is
     kept separately and proper record is maintained for the same.
t. To check that all material received in stores is having material code.
u. Checking of records of grounded/surveyed off vehicles that the De-registration of the
     same has been obtained from the RTO.

                                              Page 25 of 52
    This covers coal transport, sand transport, hiring of pay loaders 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 awarded by Contract Management Cell or by any other department.
   (b) Checking of route map of coal transportation, which is certified by IED 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 competent authority and payment released is
      as per terms of contract/ work order.
   (d) Checking of monthly target       quantity for transport and penalty for short fall, if any is
      recovered from the contractor as per the work order. In case waiver of penalty, the same
      should have competent approval.
   (e) Surprise checks are to be carried out during weighment of trucks/ tippers/dumpers 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 approval 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 conditions of the work
      order and based on the certificate of the concerned authority regarding satisfactory
      performance and to check 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 dispatch point.
   (l) Checking of records of coal transportation done by both departmental 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 isoperating effectively and monitored, if not report thereof.
14.2 Sand Transport:

                                                    Page 26 of 52
     a) To check that the CMC manual is complied with in finalizing relevant tenders of sand
           transportation awarded 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 competent authority has been obtained for any excess quantity and
     approval of competent 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 and 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 comparison with norms and variance if any to
    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. certified regarding fulfilling requirement of labor laws
         specifically 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) Verification of all payments of difference of wages for Contract workers.
   (i) Checking of initial and final measurement document of contractual OB removal.
   (j) Reconciliation with survey report and OBR reported.
   (k) Whether Uniform practice has been followed for acceptance / rejection of offers including
         the time period for such decision on test check basis?
   (l) OBR removed during the year with bill paid and reconciliation with physical
   (m) Checking of the closing advance stripping with Surveyor's Report.
   (n) Verification of OBR measurement and accounting. Verification of initial profile and final
                                                  Page 27 of 52
        profile with the billed quantity for payment.
     (o) Whether Hindrance Register is maintained and updated for every Coal, Sandtransport
        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.

      It covers all construction works under capital head, revenue works and turnkey contracts
15.1To 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 completed 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 checkof
        MB with bills.To report where final billsare pending for completed 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 abnormal variations in quantities as per estimates of awarded
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 has been recovered from the
15.8 To check that the paymentshave been made as per the terms and conditions 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.

16.1 Manpower:
     (a) To check the reconciliation of manpower on roll and manpower paid as per Pay-sheet.
     (b) Checking of fixation of basic pay on promotion, revision of basic pay in disciplinary

                                                  Page 28 of 52
      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/
   (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
   (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 not released and report
   (h) To check the cases of retirement on medical ground and female VRS and to check that
      the competent approval is obtained.

16.2 Form B:
   (a) Whether photographs of the employees have not been affixed and attested?
   (b) Whether Form B has been signed by the employees and countersigned by the authorized
   (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 totaled are made in the attendance register. The attendance register is signed daily
       by the authorized person.
   (b) In case of Underground, cross-check the attendance with Cap LampRegister.

16.4Leave Records (Form G and 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 and added for the
      current year as per eligibility, leave availed are correctly recorded.
   (c) Leave availed is supported by applications and duly sanctioned.
   (d) To check that the leave register is updated and corrected regularly and not once a

                                                 Page 29 of 52
 (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 and
     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 Sunday / Holiday workings with
     Budget and previous year in terms of hours/days and financial.
 (h) To Report on Sunday deployment 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 applications from the employees for any changes), details of
     previous LTC availed, date & amount of advance 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.
 (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 and to report
     weaknesses and deficiencies in internal control.
 (d) Checking of all deduction, recoveries and adjustmentsare 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-gradation, annualincrement and
     stagnation increment and on implementation of NCWA and Executive Pay Revision as
                                               Page 30 of 52
    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 and 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
 (l) Checking of register for recovery of rent and reporting on outstanding 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 company accommodation, if any, should be reported.
 (o) Reconciling HRA payment against respective sanction order.

16.8 Advances to Employees:
 (a) To check that the advances are adjusted and in case of recovery the same is regularly
    done, no second advance unless first one is adjusted.
 (b) To check the schedules 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 yearswith
    Date of advance & reason for non-adjustment.
 (e) To check that the interest on House Building and Conveyance advances has been
    calculated correctly and recovered regularly.

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) and production incentive etc. is calculated
 (c) Whether records of spot incentive is maintained as per company policy.

                                                 Page 31 of 52
   (d) Verification of records of Non-Entitled (NE) patients towards expenditure incurred for
      medicines,tests etc.
   (e) Timely and proper recovery of amount outstanding related to Non-entitled patients from the
      salary of concerned employees.
   (f) Verification of medical referral cases and payment thereof.

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. details 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 and sand, Stowing, Road 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
   (d) To check that all statutory deduction made 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 levels 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 undertaken under CSR arewithin the allocated budget and also as
      per CSR policy of Coal India 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 as 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 32 of 52
16.13 Mine Closure Plan Expenditure (MCP):
     (a) To check the progressive mine closure expenses are identified and charged to a separate
           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`sexists to protect the hardware and software installed.
     (b)    To check that all software installed are 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 computer file due to lack of back up of past records, exists or not.
     (g)    To check that a system 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 and carried out by the designated and authorized 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 report the existence of software password control along with periodic
            modification are in operation.

                                                      Page 33 of 52
     (p) To check the existence of disaster recovery and business continuity plan along with
            periodic testing and review of the procedure.
     (q) To check the existence of software base control to block the access immediately after
            cessation of service like superannuation/ dismissal/ death/ termination etc.


     (a) Checking of Fixed Assets Register having all required details e.g. Quantity, unit,
         Location, Identification Number, Original Cost, Date of Capitalization, 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
     (c) Verification of title deeds of Lands. Whether tittle deeds of immovable properties are
         held in the name of Company?
     (d) To check the reconciliation of balance as per Fixed Assets Register and General Ledger
         and report for any difference.

      (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 and not installed within three months.
     (e)    To check and to report on the brake down of major equipment and that Annual
            Maintenance Contract exists or not.


      (a)     To check the records of shop wise, for expenditure incurred during the month/
      (b)     To check the jobs undertaken and completed 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
      (d)     To check that the material received and used for repairing of the machine /
              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.

                                                     Page 34 of 52
       (f)     To check that the proper record is maintained for surveyed off equipment at
               workshop with the disposal.
             Lead 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.
Others areas to be covered by the respective area/projects/units internal auditors of NCL:-
Audit of NCL funded schools.
      Note: Any other matter, considered significant, may be inserted in the scope of audit
      from time to time by the Management.

      21. Core Area in the Scope for Monthly Reporting:

SI.NO.         SI.NO.     as     per   Particular
               above Scope
(a)                     1.             Coal Production and OB Removal
(b)                     2.             Sales & Marketing
( c)                    4.             Productivity,
(d)                     5.1            Manpower
(e)                     5.2            Machines (HEMM, CHP, SDL, LHD, CM, Surface Miners, High Wall
                                       Equipment, Power Support Longwal etc.)
(f)                     6.             Explosives
(g)                     10.            Finance
(h)                 15.3.              Attendance ( Form C and D)
(i)                 15.5.              Overtime and Rest Day Workings Records (Form I)
(j)                 15.7.              Salary & Wages Audit
(k)                 15.11.             Statutory Payments & Returns
(l)                     18.            Hospital / Dispensary
(m)                     19.            Central / Regional Work Shops
(n)                     20.            Coal Mines Planning & Design Institute Limited (CMPDIL)

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 theManagement.

                                                             Page 35 of 52

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 apply his judgment to decide the applicability of these standards w.r.t. scope
of work and reporting requirements.

   A)             AUDIT TEAM
   1)      A practicing Chartered Accountant or Cost Accountantor a Firm/LLP of Chartered
           Accountants/Cost Accountantsregistered with the Institute of Chartered Accountants of
           India / Institute of Cost Accountants of India,appointed to conduct Internal Audit should
           depute audit team in the HQ/ Project/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 not 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 Project and GM/HOD
           (Internal Audit) of Subsidiary / CIL (HQ) of the concerned Company (subject to
           verification of credentials of the new incumbent to be sent alongwith the intimation with
           photo proof of qualification, PAN card, Aadhaar card and a brief profile). The audit team
           members should carry Photo ID issued by the Audit Firm duly attested by the CGM/GM
           of the project or GM/HoD (Internal Audit) of Subsidiary / CIL (HQ) as applicable.
   4)      The Internal Audit Team should visit place of Audit i.e. HQ/Project/Units every month
           and conduct Audit at least 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/Project/Unit.
   5)      The Audit team will conduct the audit as per Compendium of Standards on Internal Audit
           issued by The Institute of Chartered Accountants of India and in consultation with
           Internal Audit Department at HQ / concerned officials at Project/Unit. It is 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 should be reviewed and commented upon including changes
           suggested. The internal controls, delegation of powers are to be regularly monitored for
           compliance as well as appropriateness. The various management decisions adversely
           impacting profitability or wastages of resources are to be brought in the report.
   6)      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, improper awarding of
           contracts, theft, unlawful or unprofessional activity or activity beyond the ethical
           boundaries or any other aspects without any limitation of any kind where interest of the
                                             Page 36 of 52
     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 followed by all concerned about such
     report and 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
7)   The number of Audit firms may vary according to the number of mines, Manpower,
     Production and Dispatches of a particular Project/Unit as decided by the management.

B)           SCOPE OF WORK
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.
     (ii)      `Report of Exception' on the 25 points, approved by CIL Board and 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 beyond powers or against the interest of the company.
     (iii)     Matters contained herein and as may be advised by the company from time to
     (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 and/or
               relevant Functional Directors and General Manager in charge of the respective
               matter and to prepare their reports and 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 under Companies Act,
               2013. with respect to Internal Audit.

               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 and
               special report) for the company as a whole and will be paid an additional amount
               50% of their monthly fees applicable for the year for such consolidation. A
               quarterly as well as annual consolidation is to be made by the lead auditor for
               presentation to the respective Audit Committee.

C)           AUDIT REPORT

1)   Monthly Report: The Audit teams shall discuss their observation and findings with the
     CGM/GM/AFM/Associate Finance at Project/Unit and in case of HQ with GM/HoD

                                         Page 37 of 52
        (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 Project/ Unit and in case of HQunit, 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 provided.
2)      Quarterly Report: The Auditor shall also submit quarterly report and executive summary
        of all material points of unresolved observations/ findings with the management's
        replies/comments and the same shall be submitted to the following within twenty-one
        days of closure of the quarter:
        (i) Head of the Project/ Unit.
        (ii) GM/HoD (Internal Audit) of respective Subsidiary Company.
        (iii) GM/HoD (Internal Audit) of Coal India 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 internal 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 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 conducted 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 Project/Unit/HQ. and
        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 company and 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 material 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

                                          Page 38 of 52
                are to be included in the confidential report to be submitted to Chairperson of the Audit
                Committee of the concerned company 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 and 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 under The
                Companies Act 2013 to strengthen the governance process.
       7)       Reporting on Internal Financial Control (Including Operation Control): The Internal
                Auditor should independently 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 and 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 inadequate 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-cooperation by any specific official or
                person can also be included in the confidential report and where appropriate in the special
                Internal Audit Report should be signed by the partner of the Firm mentioning Name of the
                Partner,UDIN, Membership No., and Firm Registration No.

       D)             AUDIT FEE
       1) Monthly Fee:Monthly Audit fee will be 1,40,000/- (One lakh forty thousand) 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 additional fee of 50% of their monthly fee
             for such cosolidation. Applicable Taxes will be paid extra.
             The fee structure of Internal Auditor and Lead Internal Auditor is placed below in a tabular

Sl.         Name of        Nature of   Audit Fee for 2020-21   Audit Fee for 2021-    Audit Fee for 2022-
No.           the            Audit                             22                              23
1(a)   HQ                 Monthly         Rs.1,40,000/-             Rs.1,47,000/-        Rs.1,54,350/-
                                                (+)                       (+)                  (+)
       Units(inclu        Audit Fee.

                                                   Page 39 of 52
1(b)    ding      desk    Monthly            Rs.70,000/-             Rs.73,500/-              Rs.77,175/-
                                                  =                        =                       =
        office,           Lead
                                         Total=Rs.2,10,000/-      Total=Rs.2,20,500/      Total=Rs.2,31,525/-
        Kolkata)          Auditor's
 2      Nigahi            Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
 3      Jayant            Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
 4      Dudhichua         Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
 5      Khadia      &     Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
        IWSS              Audit Fee.
 6      Krishnashil       Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
        la                Audit Fee.
 7      Bina              Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
 8      Amlori            Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
 9      Block-B           Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
10      Jhingurda         Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
11      Kakri             Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
                          Audit Fee.
12      CWS         &     Monthly       Rs.1,40,000/-             Rs.1,47,000/-           Rs.1,54,350/-
        NSC               Audit Fee.
Total    Monthly         Audit   Fees   Rs.17,50,000.00           Rs.18,37,500.00         Rs.19,29,375.00
including Lead Auditors Fees(A)
Total No of audit months(B)                      12                          12                   12

Annual Audit Fees(A*B)                   Rs.2,10,00,000.00            Rs.2,20,50,000.00    Rs.2,31,52,500.00

                   TOTAL AUDIT FEES FROM 2020-21 to 2022-23                               Rs.6,62,02,500.00

        3) Travelling Allowance:
             Partner will be entitled for rail fare by AC 1st class or Air Fare by economy class, Qualified
             Assistant by AC 2nd Class and Semi-qualified assistant by AC 3rd class on submission of proof
             of journey, for to and fro journey undertaken once every month. For this purpose, journey
             will be considered from the firm's nearest office given in the profile to the place of audit. In

                                                      Page 40 of 52
   case of journey by mode other than rail/Air, TA will be limited to entitled class or actual fare,
   whichever is lower, subject to production of documentary evidence.
4) The Company will provide a good quality Boarding, Lodging and local transport facility to the
   Audit Team and Partner.
       The bills for conducting internal audit and TA bills will be paid on monthly basis upon
       submission of Reports.
       The paying authority in case of Area/project/unit will be Area Finance Manager of
       respective Area/Project/units and in case of Head Quarter, General Manager (Finance).
       The bill in duplicate, duly certified by the respective Area/unit/project and in case of
       head quarter GM/HoD (Internal Audit) in respect of receipt of reports and attendance,
       shall be submitted for processing of the bill and payment.

                                         Page 41 of 52

      1. The Audit Firm must not sub-contract the work. Only partners of the firm or
         employees or qualified associates whose bio data is provided 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
         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 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 approach to audit and about their special
         expertise and past achievements and their profile and credentials to be
         informally checked by Coal 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/Project is dealt in strict
         confidence and secrecy. A Certificate towards maintaining confidentiality is to be
         provided by each member of the Internal Audit team before commencement of

      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 and approved by the respective company
         based on special expertise or experience of such person.

      4. The information provided in the application by the firm must be current,
         relevant and free from mis- statements on the date of application.

      5. Partner of the firm must not be related to Managing Director/whole time
         Director or part time Director of company to be audited within the meaning of
         section 2 (77) of the Companies Act, 2013.

      6.    Neither the firm nor its partner or Associates should have any interest in the
           business of CIL.

      7. The auditor will be required to issue certificate of Independence.

      8.   Audit Firms shall have primary responsibility to ensure that the limits specified
           under section 141(3)(g) of the Companies Act, 2013 are not violated.

      9. The auditor/ firm must be free from any disqualification as per provisions of the
         Companies Act, 2013. In addition to this, the Auditor/Firm must not be holding
         any assignment as Statutory Auditor or Internal Auditor or Cost Auditor of CIL
         and its Subsidiaries as on the date of appointment and during the continuity of
         the Internal Audit.

      10. Where a Chartered accountant/Cost Accountant is a partner / proprietor of
         more than one firm, in such case, only one firm shall be allowed to take part in
         the selection process of NCL. If it is found that more than one Firms having
         common partners makes application in the EOI initiated by NCL, then applicant
         with highest marks among the firms (having common partners) shall only be
         considered and applications of other firms (having common partners) shall stand

      11. Any other compliance/declaration, if any, required under Companies Act, 2013
          shall be complied /furnished by the Internal Auditors.

                                       Page 42 of 52
12. 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

13. Dispute/difference, if any, shall be mutually settled with CGM/GM of the
      Area/unit/Project/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.

14. The Internal Auditor of the Area/Project must visit the mines in the Area, at least one
      mine in a month. The company officials will fully facilitate the visit.

15. GM/HoD (Internal Audit) of the company shall convene a meeting, in every quarter,
      of all Internal Auditors of the company to discuss the Audit Report and its

16. 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 and 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/Project may be changed
      except in case, where the unit is situated in a place where it is not feasible due to
      place constraint.
17. NCLreservestherighttorejectoracceptorwithdrawthetenderinfullorpart
    as the case may be without assigning reasonthereof.

18. NCLalsoreservestherighttoshortclosethecontractincaseofbreachofterm
    s and conditions of the contract by thetenderer.

19. The Internal Audit Assignment will be terminated and the audit firm will also not be
      considered for renewal of appointment for Internal Audit in CIL and its subsidiaries,
      in the following cases:
(a)    If the firm obtains the appointment on the basis of false information/false

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

(c)    If the firm does not submit the Audit Report, complete in all respects, as per terms
       of appointment within the stipulated time.

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

(e)    If any fraud / embezzlement is detected subsequently and not reported by Internal

(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.

                                    Page 43 of 52
              (g)   The firm has to maintain the confidentiality requirement in terms of professional
                    code of conduct and they shall not appoint/utilize the services of those who are not
                    employee/partner/director of the firm.

         Note 1:    The criteria for shortlisting will be confidential as these are more of professional
                    judgement 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 and 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 provided 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 provided 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:    NCL 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

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

                                               Page 44 of 52

                                      APPLICATION FORMAT

SI                               Particulars                              Details
1.    Name of the Firm with Registration no.
      Registration No. and 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 Number
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 No. 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
      Ref : Selection criteria: SI No. 2(A)(i)
9.    Name and Membership No. 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. and 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. and 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 Auditin last 10 years:
          (a) Name of PSU/Govt. Companies
          (b) including Concurrent audit PSU Banks
          (c) Other large companies having turnover at least Rs.100
       Ref : Selection criteria: SI No. 5
14    Audit firms having Registered Office/Branch Office within the
      state as on 01.04.2019 and continuing thereafter, wherein the
      Head quarter of the Northern Coalfields Limited is situated or is
      having its mining operation.
      Ref: Selection Criteria: Sl No.6

                                            Page 45 of 52
   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
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 DISA/CISA of Partners and full time qualified persons issued by
   Institute of Chartered Accountants of India/Institute of Cost Accountants of India.
4. Self-attested copy of Mark sheets/Certificate of IPCC/Inter Examination issued by Institute
   of Chartered Accountants of India/Institute of Cost Accountants of India.
5. Self-attested copy of Latest Registration Certificate of PCA/Firm/LLP issued by Institute of
   Chartered Accountants of India/Institute of Cost Accountants of India.
6. Self-attested copy of PAN Card of PCA/Firm/LLP.
7. Self-attested copy of GST Registration Certificate (if applicable).
8. (a)Self-attested copy of work order/appointment letter issued of Statutory/Internal Audit
   issued by PSU/Govt. Companies.
   (b)Self-attested copy of work order/appointment letter issued of Statutory/Concurrent
   Audit in PSU Banks.
    (c) Self-attested copy of work order/appointment letter issued of Statutory/Internal Audit
   issued by Large Companies with turnover of Rs100crores each year during the last
   10years.(Note:-Statement of accounts of the large companies for the last ten years(wef
   FY2009-10 to FY2018-19) must be enclosed to know the turnover of the large companies in
   this case).

9. Self-attested copy of Firm Registration Certificate/Constitution Certificate issued by
   Institute of Chartered Accountants of India/Institute of Cost Accountants of India.
   showing location of Registered/Branch office of the audit firminMadhya Pradesh and Uttar

10. All documents including EOI should be duly authenticated/signed by the partners with
seal of firm as token of unconditional acceptance of all term of reference/general terms and

   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

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

                                              Page 46 of 52

                                     Letter of Bid
   Northern Coalfields Limited
  PO- Singrauli colliery
Dt- Singrauli-486889

  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 offerNo....................dated     in   conformity
         with the said TenderDocument.

      2. We confirm to accept all terms and conditions contained in the tender document

      3. We agree to abide by this bid for a period of 180 days from the date of bid
         opening                                                                 and
         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 betweenus.

      5. We understand that you are not bound to accept the lowest or any bid you

      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 everyrespect.

      7. Weconfirmthatallinformation/documents/credentialssubmittedalongwiththetender
         are genuine, authentic, true andvalid.

      8. Weconfirmthatifanyinformationordocumentsubmittedisfoundtobefalse/incorrect
         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/Provisions of law inforce.

      9. We have not been removed from Internal Audit Assignment from CIL and its
         Subsidiairies during the FY2014-15 to FY2019-20.

                                     Page 47 of 52
            10. We have never been held guilty by the Institute of Chartered Accountants of
                India/Institute of Cost Accountants of India disciplinary process in the last 10
                years nor is under investigation nor has been charge sheeted nor punished for any
                legal default with imprisonment.

            11. We are not holding any assignment as Statutory /Cost/Internal Auditor of CIL
                and its subsidiaries as on the date of appointment and during the continuity of
                Internal Audit.

            12. We have never been banned or delisted by any Government or Quasi-
                Government Agency or any Public Sector Undertaking inIndia.

                      period of ------------------- year(s) effective from ------------------- to ---------------for---
                      ---------- (the reasons to be mentioned).

         Datedthis                 dayof           20-- Signature
         Name                                    Designation                   Seal

         Duly Authorised to sign bid for and on behalf of_


                 1.       Thisletter                            of                             bid
                          rring 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
                          ity should be a Power of Attorney sufficient to bind thebidder.

                 2.       Power of Attorney should be on non-judicial stamp paper and

                 3.       Signature & Seal of the PUBLICNOTARY 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-D) by the person
                          signing the LOB in favour of person bidding online is required to beuploaded.

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

                                                     Page 48 of 52
                                                                                Annexure - D

 Format for Authorisation to DSC holder Bidding Online by the

 personwho has signed Letter of Bid

                        (On NON JUDICIAL STAMP PAPER)

We                    do                  hereby                     authorise              M/s.           /Mr...
 ........................................................................................................ Addres
der, for online bidding on behalf of us for Tender No. .......... dated
...... invited by NCL on

Name, Signature & Seal of the person who has signed

Letter of Bid And is Authorising the DSC Holder for online


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

                                          Page 49 of 52

    Selection criteria for engaging Internal Auditors for Northern Coalfields Limited
SL.No.                CRITERIA                            BASIS OF MARKS                  MAXIMUM
1          Experience of the Firm:             1.5 mark per year (fraction of the year       15
           The minimum experience is 10                   to be ignored)
           years for a Firm to be eligible
           and for each year's 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

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

2(A)(ii)   Number of full time partners / 2 marks for each             partner/person        5
           full time qualified person having having DISA/CISA
           more 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 and continuing

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

                                               1 mark for each partner/person below
                                               10 Years but above 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
           and continuing thereafter.

4          Number    of   full   time   semi- 0.75      mark     per     semi-qualified      5

                                                 Page 50 of 52
         qualified assistants (Inter Cost/ assistant
         Inter Chartered - IPCC - both
         group) & is working full time
         with     the    firm     as    on
         01.04.2019and          continuing

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

6        Audit firms having Registered
         Office/Branch Office within the
         state as on 01.04.2019 and
         continuing thereafter, wherein
         the Head quarter of the
         Northern Coalfields Limited is                                                                 10
         situated or is having its mining

                                      TOTAL MARKS                                                      100


    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. If still there is a tie in the marks scored, firm
        having highest score with respect to S.No. 5 of selection criteria will be given preference.
        Again if the tie persists, then Sl no 2(A)(i) will be given preference.

     2. Fraction of the year to be ignored while evaluation against 1 to 6.

     3. The cutoff date will be 01.04.2019 and continuing thereafter with respect to entire selection


     4. A firm which had been appointed as Internal Auditor in Coal India Ltd or any of its Subsidiary
        Companies and served a term of three years (i.e. F.Y. 2017-18 to 2019-20) would not be
        considered for appointment of Internal Auditor for next three succeeding years (cooling period).

     5. 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 professional
        parameters as may be considered appropriate 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 and 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 number of vacancies in the descending order of
        marks with a minimum qualifying marks of 70.

                                                     Page 51 of 52
6.   The number of audit firms to be shortlisted for NCL making presentation before the Audit Committee would be
     36(thirty six ), as only twelve audit firms are to be appointed. Out of thirty six audit firms, the Audit firm which
     scores highest marks(out of 150 marks) will be Lead Internal Auditor as well as Internal Auditor of HQ units and the
     remaining audit firms having scores in descending order will be Internal Auditors of the projects/units as per the
     merit list(decided by the audit committee).

7. Reserve Panel: After appointment of twelve audit firms (out of maximum 36 audit firms) as per the merit
   list after the PPT (power point presentation), the rest of the audit firms will be placed in the reserve panel.

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

                                                                          Signature Not Verified
                                                                          Digitally signed by PRATEEK AGARWAL
                                                                          Date: 2019.12.27 10:35:35 IST
                                                     Page 52 of 52        Location: Coal India Limited-CIL
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