Small Industries Development

Bank of India

Request for Proposal (RfP)

For
Concurrent Audit of Operations of
Institutional Finance Vertical (IFV)

Small Industries Development Bank of India

Audit Vertical
4th FLOOR, SIDBI TOWER,

15, ASHOK MARG,
LUCKNOW - 226001
Website : www.sidbi.in
Tender No. 2021FEB16/T000226673/A&FMV

THE INFORMATION PROVIDED BY THE BIDDERS IN RESPONSE TO THIS TENDER DOCUMENT WILL
BECOME THE PROPERTY OF SIDBI AND WILL NOT BE RETURNED. SIDBI RESERVES THE RIGHT TO
AMEND, RESCIND OR REISSUE THIS TENDER DOCUMENT AND ALL AMENDMENTS WILL BE
NOTIFIED ON SIDBI’S WEBSITE www.sidbi.in AND THESE WILL BE BINDING ON THE BIDDERS.

(THIS DOCUMENT SHOULD NOT BE REUSED OR COPIED OR USED EITHER PARTIALLY OR FULLY IN ANY FORM)

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RfP – Concurrent Auditor of IFV, SIDBI

मह वपूण जानकार का सारांश
1) सडबी इस आरएफपी म कसी भी संशोधन स हत कसी भी संशोधन / प रवतन करने का एकमा

अ धकार सुर त रखता है। इस आरएफपी म कसी भी प र श ट स हत इस तरह के संशोधन /
प रवतन सडबी क वेबसाइट www.sidbi.in पर अ धसू चत कए जाएंगे और ये बोल दाताओं पर
बा यकार ह गे।

2) बोल कताओं को सू चत कया जाता है क न वदा द तावेज़ का यानपूवक अ ययन कर ल। बोल
तुत करने पर यह माना जाएगा क न वदा द तावेज़ को यान से देख लया गया है और उसके

न हताथ को भल भाँ त समझ लया गया है।

3) बोल कता से ा त सम त प ट करण अथवा अपे ा म कसी प रवतन क जानकार सडबी क
वेबसाइट पर द जाएगी। अतः बोल तुत करने से पहले बोल कता को यह अव य सु नि चत कर
लेना चा हए क ऐसे प ट करण / प रवतन पर उ ह ने वचार कर लया है। कसी बोल कता वारा चूक
कए जाने पर सडबी क कोई िज मेदार नह ं होगी।

4) बो लय क जाँच, आकलन और तुलना म सडबी को जैसी भी मदद क आव यकता होगी, उसके
लए वह अपने ववेकानुसार बोल कता से प ट करण का अनुरोध कर सकता है। उ तर/ प ट करण
ल खत म दए जाएँगे और बोल के पदाथ-मू य म कोई प रवतन करने के लए न कहा जाएगा, न
ता वत कया जाएगा और न ह उसक अनुम त द जाएगी।

5) कृ पया यान द क बोल द तावेज़ के लए अपे त सम त सूचना का दया जाना आव यक है। इन
वषय पर अपूण जानकार देने पर चयन से वं चत रहना पड़ सकता है।

6) बोल म संशोधन और/ अथवा वापस लया जाना
एक बार तुत क गई बोल को अं तम माना जाएगा और उसके प चात ् कसी प ाचार पर वचार
नह ं कया जाएगा। बोल तुतीकरण क अं तम समय-सीमा समा त हो जाने पर कसी भी बोल म
संशोधन नह ं कया जाएगा। य द कोई बोल कता सफल बोल कता हो तो उस बोल कता को बोल
वापस लेने क अनुम त नह ं होगी।

7) ा त हु ई कसी अथवा सभी न वदाओं को बना कोई कारण बताए अ वीकार करने का अ धकार
सडबी को है।

ट पणीः
कसी भी कारण से बोल द तावेज़ के ा त न होने/ गैर-सुपुदगी के लए सडबी क कोई िज मेदार नह ं
होगी।

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RfP – Concurrent Auditor of IFV, SIDBI

Critical Information Summary

1) The RfP is posted on the SIDBI website www.sidbi.in. SIDBI reserves the sole right for
carrying out any amendment / modifications / changes including any addendum to this
RfP. Such amendments / modifications / changes including any addendum to this RfP
shall be notified on SIDBI’s website www.sidbi.in and these will be binding on the bidders.

2) Bidders are advised to study the tender document carefully. Submission of bids shall be
deemed to have been done after careful study and examination of the tender document
with full understanding of its implications.

3) Any clarifications from bidder or any change in requirement will be posted on SIDBI
website. Hence, before submitting bids, bidder must ensure that such clarifications /
changes have been considered by them. SIDBI will not have any responsibility in
case some omission is done by any bidder.

4) In case of any clarification required by SIDBI to assist in the examination, evaluation
and comparison of bids, SIDBI may, at its discretion, ask the bidder for clarification.
The response / Clarification shall be in writing and no change in the price of
substance of the bid shall be sought, offered or permitted.

5) Please note that all the information required as per the bidding document needs to be
provided. Incomplete information in these areas may lead to non-selection.

6) Modification and / or withdrawal of bids:

Bids once submitted will be treated as final and no further correspondence will be
entertained. No bid shall be modified after the deadline for submission of bids. No bidder
shall be allowed to withdraw the bid, if bidder happens to be the successful bidder.

7) SIDBI has the right to reject any or all bids received without assigning any reason
whatsoever.

NOTE:

SIDBI SHALL NOT BE RESPONSIBLE FOR NON-RECEIPT / NON-DELIVERY OF
THE BID DOCUMENTS DUE TO ANY REASON, WHATSOEVER.

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RfP – Concurrent Auditor of IFV, SIDBI

Schedule of events:

Sr. Bid Reference - 2021FEB16/T000226673/A&FMV

No.

1 Purpose Concurrent Audit of Operations of
Institutional Finance Vertical (IFV), Mumbai

One (1) Envelope

One set of hard copy should be submitted in

No. of Envelopes (Non window, sealed single envelope superscribed at the top of
2 sealed) to be submitted the envelope for one Vertical – “Request for
Proposal (RfP) for Concurrent Audit of Operations

of Institutional Finance Vertical (IFV), Mumbai.”

3 Date of uploading of the RfP February 16, 2021 (Tuesday)

4 Last date of submission of Bids March 9, 2021 at 2:00 p.m (Tuesday)

5 Venue, Date and Time of opening March 09, 2021 by 3:00 p.m at the address

of Bids. given at Sr. No. 9.

6 Date of Pre-bid meeting March 02, 2021 by 4:00 p.m (Tuesday)

7 Response to clarification / pre-bid March 03, 2021 by 4:00 p.m (Wednesday)
meeting

8 Bid Validity 6 months from the last date of submission of
bids.

9 Address for submission of Bids The General Manager
Audit & Fraud Management Vertical
SIDBI, 4th Floor
SIDBI TOWER,
15, ASHOK MARG,
LUCKNOW - 226001
Ph : 0522-2288546-50
E-mail: auditvertical_ho@sidbi.in

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RfP – Concurrent Auditor of IFV, SIDBI

Contact Persons: Phone e-mail

Name & Designation 0522- 4259821 auditvertical_ho@sidbi.in
10
0522- 4259803 auditvertical_ho@sidbi.in
Bhagirath Prasad Bathri (M)

Arun Kumar Behera [AGM]

If a holiday is declared on the dates mentioned above, the proposals shall be received /
opened on the next working day at the same time specified above and at the same venue
unless communicated otherwise.

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RfP – Concurrent Auditor of IFV, SIDBI

Introduction and Disclaimers

1.1 Purpose of RfP

The purpose of RfP is to shortlist experienced professional firm / Limited Liability
Partnership (LLP) of Chartered Accountants, for undertaking Concurrent Audit of Operations
of Institutional Finance Vertical (IFV), at Mumbai.

Table – I

Sl. Name of the HO Location of O/S as on Scope of work
the Office January 31,
No. Vertical Annexure- I - (Refinance to
2021 Banks, SFBs, SFCs &
(` in Crore) SIDCs),
Annexure- II - (Resource
Institutional Finance Mumbai support to NBFCs)
Annexure- III - (MFI
Vertical (IFV) assistance, IMEF and
Prayaas),
1 1,33,575 Annexure- IV – Volume of
work

1.2 Purpose of RfP

The Request for Proposal document contains statement derived from information that is
believed to be relevant at the date but does not purport to provide all the information that
may be necessary or desirable to enable an intending contracting party to determine
whether or not to enter into a contract or arrangement with SIDBI. Neither SIDBI nor any of
its employees, agents, contractors or advisors give any representation or warranty, express
or implied, as to the accuracy or completeness of any information or statement given or
made in this document. Neither SIDBI nor any of its employees, agents, contractors, or
advisors have carried out or will carry out an independent audit or verification exercise in
relation to the contents of any part of the document.

1.3 Disclaimer

Subject to any law to the contrary, and to the maximum extent permitted by law, SIDBI and
its officers, employees, contractors, agents and advisors disclaim all liability from any loss or
damage (whether foreseeable or not) suffered by any person acting on or refraining from
acting because of any information including forecasts, statements, estimates or projections
contained in this RfP document or conduct ancillary to it whether or not the loss or damage
arises in connection with any negligence, omission, default, lack of care or
misrepresentation on the part of SIDBI or any of its officers, employees, contractors, agents,
or advisers.

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RfP – Concurrent Auditor of IFV, SIDBI

1.4 Costs to be borne by Applicants

All costs and expenses incurred by Applicants in any way associated with the development,
preparation, and submission of responses, including but not limited to the attendance at
meetings, discussions, demonstrations, etc. and providing any additional information
required by SIDBI, will be borne entirely and exclusively by the Applicant.

1.5 No Legal Relationship

No binding legal relationship will exist between any of the Applicants and SIDBI until
execution of a contractual agreement.

1.6 Applicant Obligation to Inform Itself

The Applicant must conduct its own investigation and analysis regarding any information
contained in the RfP document and the meaning and impact of that information.

1.7 Evaluation of Offers

Each applicant acknowledges and accepts that SIDBI may in its absolute discretion apply
selection criteria specified in the document for evaluation of proposals for shortlisting/
selecting the eligible Concurrent Auditor(s). The RfP document will not form part of any
contract or arrangement, which may result from the issue of this document or any
investigation or review carried out by a Recipient.

1.8 Maintaining Secrecy and Confidentiality

The applicant shall be liable to maintain secrecy and confidentiality of all the information /
data / operations, etc. of SIDBI.

1.9 Errors and Omissions

Each applicant should notify SIDBI of any error, omission, or discrepancy found in this RfP
document.

1.10 Acceptance of Terms

An applicant will, by responding to SIDBI for RfP, be deemed to have accepted the terms of
this Introduction and Disclaimer.

2. Lodgment of RfP

2.1 RfP submission:

 RfP document submission is required to be done by March 09, 2021 (Tuesday) (2.00
PM) as under :-

Hard copy should be submitted at the following address in sealed envelope
superscribed at the top of the envelope –

(i) “Request for Proposal (RfP) for Concurrent Audit of Operations of Institutional
Finance Vertical (IFV), at Mumbai.

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RfP – Concurrent Auditor of IFV, SIDBI

The General Manager
Audit & Fraud Management Vertical
Small Industries Development Bank of India (SIDBI)
4th Floor, SIDBI Tower, 15, Ashok Marg,
Lucknow – 226001 (U. P.)
Telephones: (0522) 2288546-49
Email: auditvertical_ho@sidbi.in

RfP must be submitted on or before the aforementioned closing date and time.

 Fax / e-mail copies of any submission are not acceptable and will be rejected
by the Bank.

 Copy of bids and attachments must be provided in a sealed envelope.

The person(s) signing the bids shall initial all pages of the bid including all attachments,
etc. The bid shall contain no erasures or overwriting except as necessary to correct errors
made by the applicant, in which case, corrections shall be initialed by the person(s)
signing the bid.

If the submission does not include all the information required or is incomplete, the
proposal is liable to be rejected.

All submissions, including any accompanying documents, will become the property of
SIDBI. Applicants shall be deemed to license, and grant all rights to SIDBI to reproduce
the whole or any portion of their submission for the purpose of evaluation, to disclose the
contents of the submission to other Respondents and to disclose and / or use the
contents of the submission as the basis for any resulting RfP process, notwithstanding
any copyright or other intellectual property right that may subsist in the submission or
accompanying documents.

2.2 RfP Validity Period

The proposal must remain valid and open for evaluation according to their terms for a
period of at least six (6) months from the time the RfP closes on the deadline for
lodgment of RfP.

2.3 Cost of RfP Document

No cost has been prescribed for the RfP Document.

 The term of the Concurrent Auditor would be for maximum of three years (i.e. one
year+ extension for two years). Thereafter, cooling period of one year would be
observed for considering the services of the CA firm again in the same BO / RO /
HO Vertical where the assignment has been completed. If the Concurrent Auditor’s
services are not availed, under such circumstances also, one year cooling period
will be applicable from the date of discontinuation of the assignment for the
concurrent audit of the same BO /RO / HO Vertical. However, for appointment at

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RfP – Concurrent Auditor of IFV, SIDBI

other BO /RO / HO Vertical, they may apply even during the cooling period provided
the services of the Concurrent auditor are satisfactory.

2.4 One bid / application per applicant

 Applicant can submit application for engagement as concurrent auditor for
Institutional Finance Vertical (IFV), at Mumbai where applicant has a regular
office set-up, either head office or full fledged branch office(s) at Mumbai /
Navi Mumbai / Thane districts.

Firms already engaged with SIDBI:
 SIDBI shall engage the services of a firm / LLP for carrying out Concurrent

Audit of only one HO Vertical of SIDBI. Accordingly, in case the applicant has
already been engaged as Concurrent Auditor by SIDBI for any of its branches
/ RO and or HO Verticals, such Firm / LLP will not be eligible to apply under
this RfP.
 If the Concurrent Auditor’s services are not availed, under such
circumstances also, one year cooling period will be applicable from the date
of discontinuation of the assignment for the concurrent audit of the same BO
/RO / HO Vertical.

 Any CA firm terminated by SIDBI shall not be eligible to apply under this RfP

2.5Late Applications

Any RfP / application received after the deadline for submission of the bids / applications
will be treated as “Late Application” and such late applications shall not be considered at
all for competitive consideration.

2.6 Requests for Proposal

SIDBI may, in its absolute discretion, seek additional information or material from any
applicants after the RfP closes and all such information and material provided must be taken
to form part of that Applicant’s response.

Applicants should provide details of their contact persons, Fax, Telephone, email and full
address(s) to ensure that replies to bids could be conveyed promptly.

If SIDBI, in its absolute discretion, deems that the originator of the question will gain an
advantage by a response to a question, then SIDBI reserves the right to communicate such
response to all Applicants.

SIDBI may, in its absolute discretion, engage in discussion or negotiation with any Applicant
(or simultaneously with more than one Applicant) after the RfP closes to improve or clarify
any response.

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RfP – Concurrent Auditor of IFV, SIDBI

2.7 Notification

SIDBI will notify all short-listed Applicants in writing as soon as practicable about the
outcome of their bids. SIDBI is not obliged to provide any reasons for any such acceptance
or rejection.

2.8 Disqualification

Any form of canvassing / lobbying / influence / query regarding shortlisting, status, etc. will
lead to disqualification.

3 About SIDBI

3.1 Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an
Act of Indian Parliament, is the Principal Financial Institution for the Promotion,
Financing and Development of the Micro, Small and Medium Enterprise (MSME)
sector and for Co-ordination of the functions of the institutions engaged in similar
activities.

SIDBI provides its services through a network of Branch Offices located all over India.
Detailed information on the functions of SIDBI is provided on the website,
www.sidbi.in

3.2 SIDBI offers several financial and non-financial products and services for catering the
financial and non-financial needs of Micro, Small and Medium Enterprises (MSMEs)
through its field level offices. These include the following broad areas:
 Direct Finance
 Bills Finance
 Refinance
 Promotion and Development
 Micro-finance

4 Project Particulars:

The scope of work for Institutional Finance Vertical (IFV) is given in Annexure- I
(Refinance to Banks, SFBs, SFCs & SIDCs), Annexure- II (Resource support to
NBFCs), Annexure- III (MFIs, IMEF and Prayaas). The volume of work in each division
of IFV and other HO Vertical is indicated in Annexure- IV.

5 Fee Structure:

 Selected firm for concurrent audit of IFV, Mumbai, two CAs would need to be
deployed for, at Mumbai.

 The award of contract to CA firms / LLPs to undertake concurrent audit will be as per
fee indicated by the Bank from time to time. The present fee is indicated below:

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RfP – Concurrent Auditor of IFV, SIDBI

HO Vertical Outstanding Fee Payable Per Month (excluding
Portfolio (` crore) GST, etc.)

Institutional Finance 1,33,575 ` 1,00,000/ -
Vertical at Mumbai (Rupees one lakh only)

Note: Maximum upto 5% annually enhancement in remuneration may be considered, if

the contract is renewed, after one year, provided the performance is found satisfactory.

No out of pocket expenses or traveling allowance / halting allowance would be paid to the
concurrent audit firm / LLP for carrying out the audit. However, the service tax, education
cess / GST, etc. would be paid by the Bank, as applicable, in addition to the basic fees. The
payment to the concurrent auditors would be subject to deduction of tax at source, at
applicable rates.

6 Selection process
This RfP will be assessed on the following Selection process: -

Invite Request for Proposal (RfP) wherein Technical Evaluation information is
submitted in envelope.

Technical evaluation:

a) The Applicant is required to submit the details of its proposal in sealed
envelope. The envelope should be superscribed:

i. Request for Proposal (RfP) for Concurrent Audit of Institutional Finance
Vertical (IFV) at Mumbai

ii. Envelope should carry the Request for Proposal (RfP) for Concurrent
Audit of Applicant Firm / LLP Name & address

for said Concurrent Audit and should contain detailed statement giving the various
technical particulars of the proposal covering aspects of the Applicant like name and
location, year of establishment, names of its partners, staff, their qualification/
experience, registration number of the firm / LLP, details of ICAI membership/
Certificate of Practice details, methodology proposed and all other such relevant
particulars in the format given in Para 10.

b) After the expiry of last date for submission of bids/ application, the envelope
containing the compliance on the “Technical Evaluation” would be opened in respect
of all the applicants to verify the compliance of the applicants with the prescribed
Technical Evaluation information requirements.

[

c) The Technical Evaluation of Application would be carried out by SIDBI. The
technically qualified applicants would be short listed.

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RfP – Concurrent Auditor of IFV, SIDBI

7 Tenure of the contract:

The selected firm / LLP of Chartered Accountant would initially be assigned the contract
tentatively for a likely period of upto April 30, 2022 extendable for further two more
years (extended for one year, at a time), provided the performance is found to be
satisfactory on review and on sole discretion of SIDBI, with not more than 5% increase
in professional fee. The concurrent audit is likely to start from April 01, 2021 or any
period to be decided by SIDBI. The proposed assignment would be subject to
periodical review at the discretion of SIDBI and is liable to be terminated at any time, if
not found satisfactory, by giving a written notice of 15 days.

8 Terms & Conditions:
8.1 The Applicant shall ensure that the audit be carried out in a professional manner
and in case of any misconduct & negligence, the Bank may approach the
concerned professional bodies with complaints of professional misconduct, if any,
on the part of any professional engaged by the Bank. Accordingly, we may also
recommend their name to ICAI/ RBI/ IBA or any other authority, for suitable action
thereon by them.

8.2 The Applicant shall ensure that it will not sub-contract the audit work assigned to
any outside firm / LLP or other persons even though such persons are qualified
Chartered Accountants.

8.3 The applicant appointed as Concurrent Auditor should nominate and deploy as
under:

Institutional Finance Vertical, Mumbai: Two Chartered Accountants
(Designated Auditors), one of whom will head the concurrent audit
team as the “Lead Designated Auditor” duly authorised by the FCA
partner of the CA firm / LLP to act on behalf of the firm for concurrent
audit of IFV at Mumbai.

The Designated Auditors would be required to submit their identity proof
and address proof together with specimen signatures with a request to be
allotted biometric enabled unique login ID for access to the system. The
Designated Auditors would require to log in and log out of the system each
working day. The Designated Auditors would require to surrender the login
ID on completion of the concurrent audit tenure or on any change in the
Designated Auditor(s) by the firm / LLP.

8.4 The audit team composition for Concurrent Audit and attendance requirements
should be specified as under :-

a) The FCA partner of the firm / LLP who shall visit the Vertical/s at least 4 days
in a month; and

b) Two Chartered Accountants (deployed for audit of IFV, Mumbai), who shall
visit the Vertical preferably on all working days but for a minimum of 20 days in

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a month (provided that the number of working days are more than 20 days in a
month).

8.5 The concurrent auditors should adhere to the audit coverage strictly as per the
scope as may be decided by the Bank from time to time.

8.6 In case the HO Vertical is relocated partly or fully, to any other city during the
contract period, the CA Firm shall make their own arrangements and shall ensure
that the concurrent audit is carried out at the relocated place of the Vertical
without any break in the concurrent audit. The cost of relocation of the concurrent
auditors shall borne by the CA firm and shall not be borne by SIDBI.

8.7 The concurrent auditors should not undertake any other activities / assignment on
behalf of the HO Vertical without obtaining the concurrence of the Audit & Fraud
Management Vertical at Head Office, in writing.

8.8 The concurrent auditors will co-operate with investigative body, regarding
processing or execution of the consultancy contract or any matter related with
discharge of contractual obligations.

8.9 Necessary arrangement would be made for providing space, workstation and
access to systems (viewing rights only) to the concurrent auditor for ensuring
smooth conduct of the audit.

8.10 The concurrent auditors shall be granted read only access to the systems of the
Vertical.

8.11 The concurrent auditors shall not be allowed to carry any mass storage device
such as pen drive / flash drive / thumb drive or any laptop inside the HO premises
as these devices will not be required for the job. Concurrent auditor shall be
provided with computer system with disabled USB ports by the concerned HO
Vertical.

8.12 The concurrent auditors are required to plan the audit that it results in gradual
shortening of the interval between a transaction and its examination by an
independent person. The concurrent auditor shall perform substantive checking in
key areas and emphasis should be on ‘on the spot’ rectification of deficiencies.
The concurrent auditors shall daily go through all the vouchers and books of the
IFV for the previous day and identify areas to be scrutinized in detail.

8.13 Should maintain and keep back up papers in support of observations made.
8.14 The concurrent audit of IFV, Mumbai shall cover from October 2020 onwards.
8.15 Any other terms and conditions of the assignment would be decided by the Bank

on a case to case basis.

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RfP – Concurrent Auditor of IFV, SIDBI

A. Declarations and undertaking

 On appointment, the Applicant shall execute undertaking of fidelity and secrecy on its
letterhead in the format prescribed by the Bank.

 A declaration to be furnished by the applicant that credit facilities availed by the firm or
partners or firms in which they are partners or directors including any facility availed by a
third party for which the firm or its partners are guarantor/s have not turned or are
existing as non-performing assets as per the prudential norms of RBI. In case the
declaration is found incorrect, the assignment would get terminated besides the firm
being liable for any action under ICAI / RBI guidelines.

 The applicant must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future accept
professional relationship with any of the borrowers of SIDBI during the period during
which the firm / LLP acts as the concurrent auditor for SIDBI.

 Any other terms and conditions of the assignment would be decided by the Bank on a
case-to-case basis.

B. Selection Process

 All applicants scoring 65 marks or more (in Technical Evaluation) will be considered as
the Technically Qualified Applicant.

 Due diligence will be carried out for the top five applicants getting the maximum marks.
 On the recommendation of the Committee, name of the successful top 3 applicants

would be identified for empanelment for concurrent audit of IFV, Mumbai. Out of these 3
applicants, the Committee will recommend the applicant scoring the highest marks to be
appointed as concurrent auditor of IFV.

 The final selection of the successful applicants to be empaneled from the technically
qualified applicants will be done, based on marks scored in Rating Chart and due
diligence carried out by SIDBI.

 The validity of empanelment of concurrent audit of IFV Operations is 3 years from the
date of issuance of letter of empanelment.

9 Guidelines & Instructions for applying:

i. SIDBI will endeavour to make available all relevant information in the RfP. In case of
need of any further information or clarification during the application period, the
applicant must contact only the Contact Officer named above. On no account should
the Applicants communicate directly with any other SIDBI personnel. Failure to
comply with this requirement may result in the disqualification of the applicant from
this competition.

ii. Government Tax
Applicants are responsible for establishing the status of the Services for the purpose
of any government tax including GST, cess etc.

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iii. Alterations to Application

Any manuscript or other alteration to the RfP / Application must be countersigned and
dated by the person submitting the RfP / application.

iv. Letters and Declaration to Accompany Applications
The bid / Application must be accompanied by a letter on Firm / LLP letter head
showing the full registered name(s), registered office address of the applicant. It
should be signed by a person of suitable authority to commit the applicants to a
binding contract.

v. Packaging and Delivery of Applications

a) The Applicant is required to submit the details of its proposal in a sealed envelope.
The envelope should clearly superscribed as under:
i. Request for Proposal (RfP) for Concurrent audit of Institutional Finance
Vertical (IFV) at Mumbai
ii. Envelope should carry the Request for Proposal (RfP) for Concurrent Audit
of Applicant Firm / LLP Name & address

SIDBI accepts no responsibility for the premature opening of any incorrectly marked
Applications.
Applications must be received at Audit & Fraud Management Vertical, Small
Industries Development Bank of India, 4th Floor, SIDBI Tower, 15, Ashok Marg,
Lucknow – 226001 (U. P.) for the attention of The General Manager by 2.00 PM on
the due date. Late applications will not be accepted under any circumstance. No
special pleadings will be accepted. Faxed or e-mailed applications will not be
accepted.

vi. Conflict of Interest

Applicants must disclose in their application details of any circumstances, including
personal, financial and business activities that will, or might, give rise to a conflict of
interest; this includes any sub-contractor, if they were awarded this contract. Where
applicants identify any potential conflicts they should state how they intend to avoid
such conflicts. SIDBI reserves the right to reject any application which, in SIDBI’s
opinion, gives rise or could potentially give rise to a conflict of interest.

vii. Disclosures

The applicant must disclose:

a. If they are OR have been the subject of any proceedings or other arrangements
relating to bankruptcy, insolvency or the financial standing of the applicant
including but not limited to the appointment of any officer such as a receiver in
relation to the applicant’s personal or business matters or an arrangement with
creditors or of any other similar proceedings.

b. If they are OR any of the applicant’s staff have been convicted of, or are the
subject of any proceedings, relating to:

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 A criminal offence or other offence, a serious offence involving the activities of
a criminal organisation or found by any regulator or professional body to have
committed professional misconduct.

 Corruption including the offer or receipt of any inducement of any kind in
relation to obtaining any contract, with SIDBI, or any contracting authority.

 Failure to fulfill any obligations in any jurisdiction relating to the payment of
taxes or social security contributions.

Disclosure extends to any entity in the same group of the applicant (including but not
limited to parent subsidiary and sister companies, and companies with common
shareholders whether direct or indirect and parties with whom the applicant is
associated in respect of this application/ bid).
If an applicant or related entity or any individual discloses details of any previous
misconduct or complaint, SIDBI will seek an explanation and background details from
them. At the sole discretion of SIDBI and assessment as to whether the Applicant will
be allowed to submit an application, decision will then be made by SIDBI.
viii. Indemnity
The successful applicant shall exercise reasonable skill, care and diligence in the
performance of the assignment and indemnify and keep SIDBI indemnified in respect
of any loss, damage or claim howsoever arising out of or related to breach of
contract, statutory duty or negligence by the firm/ LLP or its staff, agents or sub-
contractors in relation to the performance or otherwise of the services to be provided
under this Contract.

ix. Assigning to Others
The successful applicant shall not, without the prior written consent of SIDBI, assign
or transfer or cause to be assigned or transferred, whether actually or as the result of
take over, merger or other change of identity or character of the CAs, any one of its
rights or obligations under the Contract or any part, share or interest therein. Upon
any such assignment or transfer, this engagement may forthwith be terminated by
SIDBI.

x. Termination
SIDBI may, at its sole discretion and at any time terminate the Contract (after giving
15 days of notice) and inform the CAs of SIDBI’s decision by written instruction to that
effect. In the event of the Contract being so terminated, the firm/ LLP shall take such
steps as are necessary to bring the Services to an end, (including terminating any
sub-contracts placed by the firm / LLP) in a cost effective, timely and orderly manner.
No further correspondence will be entertained in this regard.

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Annexure – I

Scope of Work - Institutional Finance Vertical (IFV), Mumbai
(Refinance to Banks, SFBs, SFCs & SIDCs)

1.1 Project Objective and Scope of Operations of IFV (Banks, SFBs & SFCs)
The operations include providing refinance to Banks, Small Finance Banks (SFBs) under

various schemes of refinance. The selected Chartered Accountants would undertake the concurrent
audit of the operations on daily / periodic basis and also suggest measures to improve the
functioning and efficiency. Assignment would also include verification and confirmation on the
adequacy of internal controls and IT system for sustaining operations. The staff deputed by the firm /
LLP of Chartered Accountants for carrying out the audit should be qualified and experienced in the
area of work. Concurrent Audit covers various activities of IFV Operations, including its core
functions such as credit appraisal, pre-sanction and post-sanction supervision and other day to day
operations, various MIS / data, etc. within the policy guidelines and parameters laid down. All
concerned documents / office notes which come within purview are to be signed off by the
concurrent auditor.

A. Broad scope of work

(i) Banks, SFBs

a) Day to day transactions, including checking of exposure limits, sanction, fixing of rate of
interest, disbursements and repayments, refinance sanction / disbursement applications.

b) LoI, Documentation.

c) Compliance with pre-sanction / LoI / pre-disbursement / post-disbursement conditions.
Deviations made, if any, are within the guidelines issued from time to time.
Disbursement notes to be signed off by the concurrent auditor.

d) System reports related to sanction / disbursements / appropriations / rating.

e) Demand advices are raised correctly and sent in time.

f) Accounting of all transactions. (data entry to appropriation).

g) Compliance with respect to RBI norms and internal control guidelines.

h) MIS / Returns submitted to HO Verticals / RBI /Govt. of India.

i) MIS to Senior Management.

j) Approval notes put up to competent authority.

k) Adherence to Delegation of Powers (DoP), Post Sanction Reporting (PSR), wherever
applicable.

l) Annual rating.

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m) Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List / IBA
caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. if applicable.

n) Equity related investments made in banks/Holding Companies.
o) Compliance with statutory / regulatory guidelines.
p) Reporting any irregularity in working which may result in financial or other loss to the

Bank.
q) Periodical verification of advance income tax calculations.
r) Ensuring compliance with laid down systems, procedures and policies.
s) Detection and arresting of leakage of income, if any.
t) To follow up with authorities to ensure timely rectification of irregularities reported with

regard to the operations and rectified on the spot/ during audit period itself.
u) Verify prompt, timely and regular submission of the periodical and statutory returns.
v) Any other critical areas of operations not covered above.

(ii) SFCs / SIDC
a) Equity related investments made in SFCs, Receipt of Dividend etc.
b) Compliance with laid down systems, procedures and policies, statutory / regulatory
guidelines.
c) Recovery of pending dues.
d) Follow-up in respect of NPA accounts.
e) Inspection of SFCs and compliance.
f) Receipt / review of Nominee Directors’ report.
g) Valuation of SFCs portfolio.
h) Dematerialization of shares.

B. Accounting (Banks / SFBs / SFCs/ SIDCs)

a) To ensure that all the transactions viz. receipts, payments, journal vouchers are
validated by proper instruments/ approval note, etc.

b) Transfer of daily surplus funds with the commercial bank through which IFV is
undertaking its transactions, presently IDBI & SBI, and related data entry in GPPS/ PNC
etc.

c) Periodic reconciliation of bank accounts (once in 15 days) and reporting to CAV.

d) Review of Trial Balance / balances of all GL codes, any SL-GL mismatch at monthly
interval and reporting to CAV.

e) Independently verify the transactions and accounts viz. receipts & payments validated
through instruments, verify the process of reconciliation undertaken by BO of various
sensitive accounts viz. Sundry, Suspense, Receipts Pending Appropriation, bank

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reconciliation etc., instead of reporting merely based on the certificates / statements by
the vertical officials.
f) To ensure that all the accounting transactions are carried out in accordance with the
extant guidelines of the Bank.
g) To examine and verify the appropriations done by the vertical for the repayments
received and are correctly captured in the system so that correct position is reflected at
the time of quarterly and annual closing of accounts.
h) Verify whether the classifications of loan assets of the vertical have been done properly
and income recognition norms have been followed as per Bank’s guidelines and
procedure/ RBI norms by the vertical.
i) Review of Trial Balance and clearly mention the correctness / completeness of the
related GL Codes, any GL-SL mismatch at monthly internal, adequacy of provision of
outstanding liabilities at the end of each quarter end and certification of Trial Balance of
IFV ( Banks / SFBs / SFCs/ SIDCs) .

C. Scope for Follow up & Monitoring (Banks / SFBs / SFCs/ SIDCs)
a) Annual Review and Re-rating of the accounts as per guidelines has been done.
b) Safe Custody verification is being carried out by Vertical as per the extant guidelines.
c) Receipt of beneficiaries data from banks, follow-up end use verification visits and
inspections carried out as per the laid down policies / practice.
d) Receipt of Balance Confirmation Certificate.
e) Receipt of annual report.
f) Any mis-utilization of the financial assistance and whether there are instances indicative
of diversion of funds.
g) Detection & prevention of revenue leakages in the operations.

The above areas of operation are illustrative and not exhaustive.

Reports:
 The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.
 The firm / LLP will have to submit the following reports relating to the Operations:

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I. Daily reports covering day-to-day transactions with regard to their correctness, monitoring of
risks and observations, if any, on counterparty and other specified limits by the Bank, etc.

II. Monthly reports covering comments on adherence to regulatory and internal policy guidelines
including post disbursement monitoring guidelines and areas of audit including submission of
MIS to Management. Reconciliation of accounts and other similar periodic submission.

III. Quarterly report on closing work pertaining to the operations and tallying of trial balance.
IV. Any other related report as may be required by SIDBI from time to time.
The above reports with regard to IFV Operations should be submitted to the head of the Vertical,
Institutional Finance Vertical at Mumbai, both in soft and hard forms, within a week of the reporting
period for which the report pertains. Daily reports should be released at the end of the day to The
Chief General Manager, Institutional Finance Vertical at Mumbai, both in soft and hard form. The
formats of the reports would have to be devised, wherever required, by the firm/ LLP in consultation
with and approval of SIDBI
SIDBI will prescribe structured formats for the audit reports and also stipulate the time limits for
submission of the reports. The audit formats would be reviewed periodically, as and when required.
The firm/ LLP should strictly adhere to the format and the time limit. SIDBI may prescribe different
periodicity for different reports of the operations.

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Annexure – II

Scope of Work - Institutional Finance Vertical (IFV) (Resource support to NBFCs), Mumbai

A. Objectives and work areas of Concurrent Audit
The main objectives and work areas of the concurrent audit are as follows:

a) Verifying whether sanctions for advances and disbursement thereof is obtained from
competent authority.

b) Scrutinizing the completeness of documents submitted for availing advances and other
facilities.

c) Ensuring compliance of laid down systems, procedures and policies.
d) Examining books of accounts, records and / or registers to ensure that they are maintained in

accordance with the prescribed systems/reconciled with general ledger.
e) Detection and arresting of leakage of income, if any.
f) To follow up with authorities to ensure timely rectification of irregularities reported with regard

to the operations of the vertical and rectified on the spot/ during audit period itself.
g) Verify prompt, timely and regular submission of the periodical and statutory returns.
h) Any violation of procedure is brought to light.
i) Reporting any irregularity in working which may result in financial or other loss to the Bank.
j) Feedback on regulatory compliances.
k) Any other areas on the operations of the Bank which are vital, in nature.

B. Scope
a) Whether the transactions or decisions are within the policy parameters laid down by the
Bank.
b) Sanction and disbursement of loans & advances are within the policy parameters laid down
by the Bank. All the loan disbursements are to be checked / verified by the concurrent
auditors before actual disbursements and all the disbursement notes need to be signed off by
the concurrent auditors (CA Partner).
c) Sanctions / disbursements are within the delegated authority
d) Sanctions / disbursements do not violate the instructions or policy prescriptions of the RBI /
other regulators.
e) Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List / IBA
caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. is done
satisfactorily.
f) DoP has been exercised properly and Post Sanction Reporting (PSR), wherever applicable,
is sent to Post Sanction Reporting Authority (PSRA).
g) Security creation has been done properly. All the prescribed and necessary documents are
collected from borrowers.
h) Verify whether all charges of SIDBI on the assets hypothecated are registered with Registrar
of Companies (ROC).
i) Pre-disbursement conditions are duly complied with. Deviations made, if any, are within the
guidelines issued from time to time.
j) Verify the end use of term loan disbursed by the Vertical for the purpose it is meant for.
k) Verify whether visits to the beneficiary units have been carried out as per the guidelines and
observations, if any, bring to the notice of the authority of the Vertical.
l) All the receipts have been properly accounted for/ appropriated as per Bank’s accounting
policy.

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m) All regulatory provisions/ guidelines are duly complied with (e.g. areas including TDS and
service tax / professional tax/GST etc).

n) Whether in all cases where the statements/ documents (stock statement, Balance
Confirmation Certificate, Acknowledgment of Debt, Annual report etc.) are not received even
after a reasonable time, prompt action is taken by the vertical to get the same.

o) Verify whether there is any mis-utilisation of the loans and whether there are instances
indicative of diversion of funds.

p) Detection & prevention of revenue leakages in the operation of the Vertical through close
examination of income and expenditure.

q) Verify whether there are any borrowal accounts (other than those reported by the Vertical)
which are showing early warning signals or symptoms of sickness and/or can be classified as
NPAs. If so, ascertain the reasons thereof and analyse the steps taken by the Vertical in the
matter.

r) Verify whether the classification of loan assets of the Vertical have been done properly and
income recognition norms have been followed as per Bank’s guidelines and procedure/ RBI
norms by the Vertical.

s) Verify the updation of CIBIL data and report the status in the monthly audit report.
t) Verify the details of flow of applications, time taken for appraisal of proposals, pending

applications etc. with the vertical and report the status in the monthly audit report.
u) Verify whether interest rate is charged as per approved rate of Interest.

C. Accounting
a) The maintenance and balancing of accounts, ledgers and registers is proper.
b) Early reconciliation of entries outstanding in the Vertical with regard to inter-branch and inter
bank accounts, Suspense Account, Sundry Deposits Account, etc. Ensure early adjustment
of entries in the Vertical.
c) To ensure that all the transactions viz. receipts, payments, journal vouchers are validated by
proper instruments/ approval note, etc.
d) To ensure that all the accounting transactions are carried out in accordance with the extant
guidelines of the Bank.
e) To examine and verify the appropriations done by the Vertical office for the repayments
received during the month. The objective is to ensure that the appropriations done by the
Vertical is correctly captured in the system and are in order so that correct position of
overdues / dues / RPA etc. is reflected at the time of quarterly and annual closing of accounts
as on March 31.
f) To ensure that the CA Certified half yearly stock statement from the borrower is obtained in
time.
g) To scrutinize the half yearly stock statements to ensure adequate MSME assets are available
to cover the exposure of SIDBI.
h) To ensure that quarterly NBS 7/2, half yearly ALM statement, half yearly due diligence
certificate, other financial statements are obtained, wherever applicable and indicate the
observations on the relevant aspects like CRAR, NOF, Asset Liability Profile etc.
i) To check the correctness of upfront fee, interest / penal interest, etc.
j) Verification as per extant guidelines.
k) To verify the correctness of security, Legal compliance, ROC search etc.
l) Review of Trial Balance and clearly mention the correctness / completeness of the related GL
Codes, any GL-SL mismatch at monthly internal, adequacy of provision of outstanding
liabilities at the end of each quarter end and certification of Trial Balance of IFV (NBFCs) .

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D. Scope for Follow up & Monitoring
a) Verify whether Registration of charge(s) with ROC and CERSAI for all eligible cases has
been done.
b) Verify whether the ratings are approved and printouts of the same are available on record.
c) Verify whether demand advices are raised correctly and sent in time as per extant guidelines.
d) Verify whether validation of sanction / review of undisbursed sanctions has been carried out
as per extant guidelines.
e) To verify / review the interim disbursements / final security creations.
f) To verify exchange of credit Information with other banks

E) The CA will have to submit the following reports to the Management:

(i) Monthly reports covering Vertical’s day-to-day operations including its core functions such as
credit appraisal, pre-sanction and post-sanction supervision and other operations towards
finance availed by them with regard to their correctness, compliance to the terms and
conditions of sanction, post disbursement, supervision, documentation, monitoring of
business risks, compliance of Delegation of Powers, adherence to regulatory, internal policy,
procedure, guidelines, etc.

(ii) Any other related report as may be required by SIDBI from time to time

(iii) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

F) Average number of transactions to be checked on daily basis:

1. It is expected that there will be around 10-15 sanctions per annum and under each sanction
there will be around 3 disbursements.

2. There are 21 different customers as on date in our portfolio and repayments are received
every month from these customers. 5-10 new NBFC customers are proposed to be added.

3. There will be quarterly/ half yearly/ yearly/ reset of interest rates for most of the clients.

Reports:
 The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

 The firm/ LLP will have to submit the desired/ prescribed reports relating to NBFC
Operations.

 Any other related report as may be required by SIDBI from time to time.

The above reports with regard to NBFC Operations should be submitted to the head of the
Vertical, Institutional Finance Vertical at Mumbai, both in soft and hard forms, within a week
of the reporting period for which the report pertains. Daily reports should be released at the
end of the day to The Chief General Manager, Institutional Finance Vertical at Mumbai, both

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in soft and hard form. The formats of the reports would have to be devised, wherever
required, by the firm/ LLP in consultation with and approval of SIDBI.
SIDBI will prescribe structured formats for the audit reports and also stipulate the time
limits for submission of the reports. The audit formats would be reviewed periodically,
as and when required. The firm/ LLP should strictly adhere to the format and the time
limit. SIDBI may prescribe different periodicity for different reports of the operations.

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RfP – Concurrent Auditor of IFV, SIDBI

Annexure – III

Scope of Work - Institutional Finance Vertical (IFV), Mumbai

Part A - (MFI assistance / IMEF)

The main objectives and Work areas of the concurrent audit are as follows:
a) Verifying whether sanctions for advances and disbursement thereof is obtained from

competent authority.
b) Scrutinizing the completeness of documents submitted for availing advances and other

facilities.
c) Ensuring compliance of laid down systems, procedures and policies.
d) Examining books of accounts, records and / or registers to ensure that they are maintained in

accordance with the prescribed systems/reconciled with general ledger.
e) Detection and arresting of leakage of income, if any.
f) To follow up with authorities to ensure timely rectification of irregularities reported with regard

to the operations of the vertical and rectified on the spot/ during audit period itself.
g) Verify prompt, timely and regular submission of the periodical and statutory returns.
h) Any violation of procedure is brought to light.
i) Reporting any irregularity in working which may result in financial or other loss to the Bank.
j) Feedback on regulatory compliances.
k) Any other areas on the operations of the Bank which are vital, in nature.

A. Broad scope of work
i. Whether the transactions or decisions are within the policy parameters laid down by the

Bank.
ii. Sanction and disbursement of loans & advances are within the policy parameters laid down

by the Bank. All the loan disbursements are to be checked / verified by the concurrent
auditors before actual disbursements and all the disbursement notes need to be signed off by
the concurrent auditors (CA Partner).
iii. Sanctions / disbursements are within the delegated authority
iv. Sanctions / disbursements do not violate the instructions or policy prescriptions of the RBI /
other regulators.
v. Compliance to RBI guidelines relating to defaulters list / Caution Advice / CIBIL List / IBA
caution list for Third Party Entity / fraudulent borrowers list, KYC / AML, etc. is done
satisfactorily.
vi. DoP has been exercised properly and Post Sanction Reporting (PSR), wherever applicable,
is sent to Post Sanction Reporting Authority (PSRA).
vii. Security creation has been done properly. All the prescribed and necessary documents are
collected from borrowers.
viii. Verify whether all charges of SIDBI on the assets hypothecated are registered with Registrar
of Companies (ROC) / CERSAI Entry carried out.
ix. Pre-sanction /LoI/ Pre-disbursement conditions and Post Disbursement Conditions are duly
complied with. Deviations made, if any, are within the guidelines issued from time to time/
requisite approval obtained for the same from the competent authority.
x. Verify the end use of term loan disbursed by the Vertical for the purpose it is meant for.
xi. Verify whether visits to the beneficiary units have been carried out as per the guidelines and
observations, if any, bring to the notice of the authority of the Vertical.

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xii. All the receipts have been properly accounted for/ appropriated as per Bank’s accounting
policy.

xiii. All regulatory provisions/ guidelines are duly complied with (e.g. areas including TDS and
service tax / professional tax/GST etc).

xiv. Whether in all cases where the statements/ documents (Book Debt statement, Balance
Confirmation Certificate, Acknowledgment of Debt, Annual report etc.) are not received even
after a reasonable time, prompt action is taken by the vertical to get the same.

xv. Verify whether there is any mis-utilisation of the loans and whether there are instances
indicative of diversion of funds.

xvi. Detection & prevention of revenue leakages in the operation of the Vertical through close
examination of income and expenditure.

xvii. Verify whether there are any borrowal accounts (other than those reported by the Vertical)
which are showing early warning signals or symptoms of sickness and/or can be classified as
NPAs. If so, ascertain the reasons therefore and analyse the steps taken by the Vertical in
the matter.

xviii. Verify whether the classification of loan assets of the Vertical have been done properly and
income recognition norms have been followed as per Bank’s guidelines and procedure/ RBI
norms by the Vertical.

xix. Verify the updation of CIBIL data and report the status in the monthly audit report.
xx. Verify the details of flow of applications, time taken for appraisal of proposals, pending

applications etc. with the vertical and report the status in the monthly audit report.
xxi. Verify whether interest rate is charged as per approved rate of Interest.
xxii. Any other critical area of operations not covered above

B. Accounting (MFI Assistance / IMEF)

a) The maintenance and balancing of accounts, ledgers and registers is proper.
b) Early reconciliation of entries outstanding in the Vertical with regard to inter-branch and inter

bank accounts, Suspense Account, Sundry Deposits Account, etc. Ensure early adjustment of
entries in the Vertical.
c) To ensure that all the transactions viz. receipts, payments, journal vouchers are validated by
proper instruments/ approval note, etc.
d) To ensure that all the accounting transactions are carried out in accordance with the extant
guidelines of the Bank.
e) To examine and verify the appropriations done by the Vertical office for the repayments received
during the month. The objective is to ensure that the appropriations done by the Vertical is
correctly captured in the system and are in order so that correct position of overdues / dues /
RPA etc. is reflected at the time of quarterly and annual closing of accounts as on March 31.
f) To ensure that the CA Certified quarterly book debt statement from the borrower is obtained in
time. To scrutinize the book debt statements to ensure adequate MFI assets are available to
cover the exposure of SIDBI.
g) To check the correctness of upfront fee, interest / penal interest, etc.
h) To verify the correctness of security, Legal compliance, ROC search etc.
i) Safe custody verification as per extant guidelines.
j) Review of Trial Balance and clearly mention the correctness / completeness of the related GL

Codes, any GL-SL mismatch at monthly internal, adequacy of provision of outstanding
liabilities at the end of each quarter end and certification of Trial Balance of IFV (MFIs/IMEF) .

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k) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

C. Scope for Follow up & Monitoring (MFIs / IMEF)
 Monthly monitoring reports is being submitted by the assisted MFIs.
 CA certified Book Debt statement and CA Certified Sample Verification reports have been

obtained as per extant guidelines to ensure end use verification.
 End use verification of requisite sample size by bank officials post disbursement.
 Periodical visit to the MFIs / field areas by bank officials as per extant guidelines.
 Quarterly Book Debt statement being submitted as per extant guidelines.
 Verify whether validation of sanction / review of undisbursed sanctions has been carried out as

per extant guidelines.
 To verify / review the interim disbursements / final security creations.
 To verify exchange of credit Information with other banks
 Annual Review and Re-rating of the accounts as per guidelines has been done.
 Nominee Director Reports are being submitted in time.
 Safe Custody verification is being carried out by Vertical as per the extant guidelines.
 Receipt of beneficiary’s data from MFIs, follow-up end use verification visits and inspections

carried out as per the laid down policies / practice.
 Receipt of Balance Confirmation Certificate (BCC) / Acknowledgement of Debts (AoDs).
 Receipt of Annual report from the assisted MFIs.
 Any mis-utilization of the financial assistance and whether there are instances indicative of

diversion of funds.
 Detection & prevention of revenue leakages in the operations.

The above areas of operation are illustrative and not exhaustive.

(D) Reporting Requirements

 The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

 The Firm / LLP will have to submit the following reports to the head of the Vertical:

(i) Reports relating to Operations in Vertical
(ii) Monthly reports covering Vertical’s day-to-day operations including its core functions such as

credit appraisal, pre-sanction and post-sanction supervision and other operations towards
finance availed by them with regard to their correctness, compliance to the terms and
conditions of sanction, post disbursement, supervision, documentation, monitoring of
business risks, compliance of Delegation of Powers, etc.
(iii) Monthly reports covering comments on adherence to regulatory, internal policy, procedure,
guidelines, compliance of Delegation of Powers and areas of audit as indicated at para 4.1.
(iv) Any other related report as may be required by SIDBI from time to time.
(v) The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

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Part - B (IFV-PRAYAAS)

A) Application & Pre -Sanction :

 Borrower must be an individual borrower associated with SHG / JLG or an existing customer
of Partner Institution (PI).

 Application No., Batch No., and Date of Application to be cross verified with Customer Hands
Off. Application has to be scrutinised with attached documents for its completeness and
correctness. For e.g. Date of Birth of Borrower & Co-Borrower to be cross checked with KYC
documents, banks details to be cross verified with Bank passbook / cheque etc.

 Mandatory Due Diligence has been carried out by PI or SIDBI in r/o the Borrower & Co-
Borrower i.e. Credit report , CIBIL Report , UN Terrorist List and Central Fraud Registry.

 All the above searches to be scrutinized.
 Present Loan outstanding of the Borrower, his monthly expenditure obligations, income to be

generated out of proposed assistance and proposed EMI mentioned in the application form to
be cross checked with Customer Hands Off.
 Application form is duly signed by the Borrower / Co-Borrower.
 KYC & Alternate KYC of Borrower & Co- Borrower, as per Officially Valid Documents in
respect of KYC compliance to be verified.
 Documentary Evidence of Identity Proof and Address Proof obtained and verified.
 KYC Stamp of "Verified from Original" affixed and authenticated by maker / checker.

B) SANCTION :

 Whether Checker has seen the completeness of Application and also check whether
necessary due diligence has been carried out.

B1) ISSUE OF LOI :
 LoI was issued complying the Pre-LoI condition(s)
 LoI has been issued incorporating Key / Other terms of sanction as stipulated in term sheet
and as stipulated by the sanctioning committee.

C) DOCUMENTATION & FUNDS Released

 Under PRAYAAS Scheme, only three documents are to be executed by the Borrower before
disbursement i.e Letter Of Intent, Demand Promissory Note and Loan Agreement cum Deed
of Hypothecation.

 Documentation done as per the extant Legal Vertical Formats
 Documentation executed on stamp papers, properly-stamped and with proper testimonial

clauses.
 Variance, if any in address / spellings of name(s) in DPN, LA cum Deed of Hypothecation,

LoI as compared with KYC documents.
 The Rate of Interest being charged is as per the sanctioned interest rate.
 The Rate of Interest being charged is higher than the sanctioned interest rate.
 Whether while effecting Funds Released / disbursement, the sanctioned limit to PI may not

get breached i.e. O/s under the Scheme may not be more than the Sanctioned limit.

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D) Follow up & Monitoring
 Collections handoff have been acknowledged in Mobicule and same has been approved in
DFS
 Matching of remittance with the aggregate due amount.

E) Commission Payment
Checking correctness of invoice and payment thereof through CVPC.

F) Any other issue
The following are also to be checked by CA:

 The rating of the MFI has expired and fresh rating as stipulated in the terms of sanction has
not been obtained by the PI.

 As advised in the terms of sanction, weaknesses observed in the COCA Report not
addressed by the MFI within the stipulated time.

 Quarterly review of the Portfolio / operations, whether they have been undertaken.
 Review of Trial Balance / balances of all GL codes, any SL-GL mismatch at monthly interval

and reporting to CAV.

Reports:
 SIDBI will prescribe structured formats for the audit reports and also stipulate the time limits
for submission of the reports. The audit formats would be reviewed periodically, as and when
required. The firm/ LLP should strictly adhere to the format and the time limit. SIDBI may
prescribe different periodicity for different reports of the operations.
 The CA shall be accountable, on its part, for wrongly verifying any document or signing off
disbursement notes or such other important documents based on which the Bank takes a
decision.

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Annexure- IV

Volume of work

A. IFV, Mumbai ( Refinance to Banks / SFBs / SFCs/ SIDCs / Prayaas, NBFCs, MFIs, )

i)Average no. of transactions in Refinance to Banks / SFBs / SFCs / SIDCs / SFBs

a) The total no. of refinance disbursement made during the FY 2021 were approximately 84
up to January 31, 2021. Accordingly, it is expected that no. of disbursements during FY
2021 would be approximately 100-105 i.e. average number of transactions are 1 in every
2 working days during this FY.

b) The business target for (Banks, SFCs, SIDCs, SFBs ) for FY 2021 is Rs.128200 crore
which encompass disbursement of Rs.78232 crore and repayment of Rs.93264 crore,
besides follow-up and monitoring works.

ii) Average No of transactions to be checked - NBFCs
a) It is expected that there will be around 10 to 15 sanctions per annum and under each
sanction, there will be around 3 disbursements.
b) There are 21 different customers as on date in our portfolio and repayments are
received every month from these customers. 5 to 10 new NBFC customers are proposed
to be added.
c) There will be quarterly / half yearly/ yearly reset of interest rates for most of the clients.

(iii) Average No of transactions to be checked- MFI Assistance / IMEF / PRAYAAS
[a] Under MFI Assistance & IMEF :The total number of disbursements transaction under
MFI / IMEF assistance during FY 20 were approximately 26.

[b] Under PRAYAAS :- From 1st April, 2020 till January 31, 2021, around 300 proposals
have been sanctioned and around 80 loans have been disbursed for PIs. The outstanding
as on January 2021 is approximately Rs.75.35 crore. (The figures during the year were
extremely low due to Covid 19 disruptions which are likely to go up during the coming
year)

10. Technical Evaluation Procedure of the applicants:
The technical capabilities of the applicants with regard to audit of the operations of Institutional
Finance Vertical (IFV), Mumbai would be evaluated based on the following criteria and
weightage:

10.1 Technical Evaluation Criteria for Operations pertaining to IFV, Mumbai.

10.2 Pre-Requisite for Applying

The Applicant should

 Furnish proof of Valid registration/ Certificate of Practice from the Institute of
Chartered Accountants of India (ICAI).

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 Be a Partnership firm of Chartered Accountants with minimum 3 partners of which at
least 2 partners should be FCA(s). At least one partner should have a continuous
association with the firm of a minimum of 5 years and another partner should have a
continuous association with the firm of a minimum of 3 years. The details of each
partner including experience, qualification etc., and their Registration Number with
Institute of Chartered Accountants of India (ICAI) to be furnished as documentary
proof.

 Has Minimum five years of previous track record of carrying out concurrent audits in
other Financial Institutions / Public / private Sector Banks” (with documentary proof).

 CA firm has its HO or Branch office at Mumbai / Navi Mumbai / Thane districts
 Without compliance of the above pre-requisites, the applicant will not be eligible for

applying.
10.3 Technical Evaluation Criteria for Concurrent Audit of Operations pertaining to IFV,
Mumbai. (Rating Criteria)

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Rating Chart

Sl. Criteria Maximum
Marks
No.
(Weightage)
i  Year of establishment of Chartered Accountant firm / Limited Liability 20
Partnership (LLP) of Chartered Accountants.
30
 Upto 5 years – 10 Marks
 5 to 10 years – 12 Marks 30

 10 to 15 years – 15 Marks
 More than 15 years – 20 Marks
ii.  Firms/ Liability Partnership (LLP) of Chartered Accountants with minimum 3
partners of whom at least two should be FCA. At least one partner should
have a continuous association with the firm of a minimum of 5 years
and another partner should have a continuous association with the firm
of a minimum of 3 years.
- (20 Marks)

1.5 marks to be awarded for each additional partner (over and above 3
partners) of the firm and 01 mark each for full time CA employee, who have
been with the company for more than 1 year with cut off date as 31/10/2019.
(Maximum marks - 10)
iii  Minimum five years of previous track record of carrying out concurrent audits in
other Financial Institutions / Public / private Sector Banks (with documentary
proof) – 20 Marks

 In addition to the above, firm having previous track record in:

i) carrying out such audits in other Financial Institutions / Public / Private
Sector Banks mainly in the area of credit dispensation under MSME. (with
documentary proof) – (Additional 5 marks).

 carrying out such audits in other Financial Institutions / Public / Private Sector
Banks mainly in the area of financing to NBFCs / Refinance to Banks. (with
documentary proof) – (Additional 5 marks).

iv. Whether the firm / LLP empanelled with RBI as

 Statutory Central Auditor – 10 Marks 10

 Statutory Branch Auditor (Category I) – 7 Marks

 Statutory Branch Auditor (Category–II) – 5 Marks

(with documentary proof)

v. Availability of suitable infrastructural facilities including office set up, adequate

manpower and permanent manpower at either Head Office or full fledged Branch

Office at Mumbai / Navi Mumbai / Thane districts 10

 Branch – 5 marks

 Head Office – 10 marks

Maximum technical score 100

***************

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Appendix

10.4 Information to be provided for Technical Evaluation etc.

a) Chartered Accountant Firm/ LLP Details:

Sl. Requirements Remarks
No.

1 Name of the Chartered Accountant Firm / LLP with year of establishment.

2 Registration Number / Certificate of Practice from the Institute of Chartered

Accountants of India (furnish documentary proof, Registration should be valid).

3 Previous Track Record of carrying out concurrent audit in Financial Institution /

Public / Private Sector Banks in the area of financing to NBFCs/ Refinance to

banks. In addition to the above, previous track record of carrying out concurrent

audit in FIs/ Public/ Private banks in areas:

a) Credit dispensation to MSMEs

b) Financing of NBFCs / Refinancing to Banks.

Details may be given as per Table (A)

4 Details of every partner including experience, qualification etc. and their

Registration number with ICAI (furnish a detailed list of all the partners)

Sl. Name of the Age Educatio Experience Period of
No. Partner (completed n Association
with the firm
year as on Qualifica
31/12/2020) tion

5 Minimum five years of previous track record of carrying out concurrent audits in
other Financial Institutions / Public / private Sector Banks (furnish documentary
proof)

6 Whether the firm / LLP empanelled with RBI (furnish documentary proof).
7 Availability of suitable infrastructural facilities including office set up (Branch office /

Head office at Mumbai / Navi Mumbai / Thane districts may be specifically indicated),
adequate manpower who are specialized in the area of audit in other Financial
Institutions / Public / private Sector Banks. Competence and qualification of key
professional staff who shall carry out the assignment in a time bound manner
(furnish a detailed list of all the skilled / semi skilled employees / staff).
8 Whether the audit firm / LLP or any sister/ associate concern is conducting the
statutory audit of SIDBI or Concurrent Audit in any of SIDBI branches / HO
Verticals.

Note: All the relevant details & documentary evidence, etc. are to be furnished. The above is only a format.
Information may be submitted in additional sheet(s) as may be required.

i. The following declaration/ undertaking shall be furnished by the firm:

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a) The firm/ LLP shall agree to execute undertaking of fidelity and secrecy on its letter head
in the format prescribed by the Bank, if the contract assigned

b) That the information submitted is complete in all respect and true to the best of our
knowledge.

c) A declaration to be furnished by the firm that credit facilities availed by the firm or
partners or firms in which they are partners or directors including any facility availed by a
third party for which the firm or its partners are guarantor/s have not turned or are
existing as non-performing assets as per the prudential norms of RBI. In case the
declaration is found incorrect, the assignment would get terminated besides the firm
being liable for any action under ICAI/ RBI guidelines.

d) The firm / LLP must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future accept
professional relationship with any of the borrowers of SIDBI during the period during
which the firm / LLP acts as the concurrent auditor for SIDBI.

e) Any other terms and conditions of the assignment would be decided by the Bank on a
case-to-case basis.

Note: Formats for the above are given in later pages.

a) Details of concurrent audit

Sr. Name of the Branch/HO Year of Audit/ Period (From -
To) [Data required for the last
No. Bank/FIs
10 years of your firm]

b) Details of Statutory Central Audits (SCA)/ Statutory Bank Auditor (SCB) of
various Banks

Sr. Name of thBeranch/HO Specify SCA/ SCB Year of Audit/ Period (From - To)
No. (Category I/II) [Data required for the last 10
years of your firm]

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Declarations:

All the applicants should submit their bid along with the following declarations
and undertaking

(i) Declaration to be furnished in the letter head of the firm/ LLP.

We hereby declare that the information submitted above is complete in all
respect and true to the best of our knowledge. We understand that in case any
discrepancy or inconsistency or incompleteness is found in the information
submitted by us, our application is liable to be rejected.

Date: Authorised Signatory

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(ii) Declaration of Eligibility

I/ We _______________________________Chartered Accountants hereby
declare that I/ We comply with the eligibility conditions specified, established under the
Chartered Accountants Act, 1949, and I/ We declare that:

None of the Partners of the firm do not have any disciplinary proceeding under the
Chartered Accountants Act, 1949 pending against them or any disciplinary action under the
Chartered Accountants Act, 1949/ penal action under any other law taken/ pending against
him/ her.

Credit facilities availed by the firm or partners or firms in which partners or directors,
including any facility availed by a third party for which the firm or its partners are guarantor/s,
have not turned or are existing as Non Performing Assets as per the prudential norms of
RBI.

The firm does not have any professional relationship with any of the borrowers of SIDBI nor
will it in future accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm acts as the concurrent auditor for SIDBI.

It is further confirmed that the firm is not the Statutory Auditor of Small Industries
Development Bank of India (SIDBI).

None of the Partner of the firm hold any shares or other securities (including options or
futures) in Small Industries Development Bank of India (SIDBI).

Our Firm has conducted / has not conducted concurrent audit of _____ (BO) / ______ (HO
Vertical)/ _____ (other offices of SIDBI) during the period _________ . (Give status since
01/11/2014).

Our Firm will continue to satisfy the eligibility norm for appointment of Chartered
Accountants as Concurrent Auditors as prescribed by the Bank from time to time.

I/ We understand that any breach of the provisions regarding eligibility shall
be considered as gross negligence and may result in appropriate action under the Chartered
Accountants Act, 1949.

Place: ______________ For ________________________
Date: _______________ Chartered Accountants

Partner

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