APPOINTMENT OF INTERNAL AUDITOR FOR
HSL & SSL FOR F.Y. 2019-20
Tender No. 01(Com)Purchase/2019-20
Date of release of
28th March, 2019
tender
Due date & time of
submission 24th April, 2019 up to 15.00 Hrs
Date & time of
24th April, 2019 at 15.30 Hrs
opening
Place of submission
Office of Dy. General Manager (C & L), G-229,
and opening on the
Sitapura Industrial Area, Jaipur-302022
tender document
Cost of tender form Rs. 500/-
Mode of Payment of Either by DD drawn in favour of Hindustan Salts
Cost of tender Ltd. and payable at Jaipur or through NEFT/RTGS
Document in Company's account.
Hindustan Salts Limited
(A Government of India Enterprise)
CIN: U14220RJ1958GOI001049
Registered Office: G-229, Sitapura Industrial Area, Jaipur-302022(Raj.)
Phone No.0141-2771427, FAX No. 0141-2771449
Subsidiary: SAMBHAR SALTS LTD
CIN: U14220RJ1964GOI001188
Unit : Sambhar Lake, Pin- 303604, Dist. - Jaipur (Rajasthan)
Phone : 01425-228249; Fax : 01425-228244
E-mail: purchase@indiansalt.com
Website: www.indiansalt.com
Hindustan Salts Limited
(A Government of India Enterprise)
CIN: U14220RJ1958GOI001049
Registered Office: G-229, Sitapura Industrial Area, Jaipur-302022,(Raj.)
Phone No.0141-2771427, FAX No. 0141-2771449
Subsidiary: SAMBHAR SALTS LTD
CIN: U14220RJ1964GOI001188
Unit : Sambhar Lake, Pin- 303604, Dist. - Jaipur (Rajasthan)
Phone : 01425-228249; Fax : 01425-228244
E-mail: purchase@indiansalt.com
Website: www.indiansalt.com
Appointment of Internal Auditor for HSL & SSL for F.Y. 2018-19
I. GENERAL
Hindustan Salts Limited (HSL) was incorporated on 12.04.1958 as a Company fully owned by
the Govt. of India to take over the salt sources, earlier managed by Salt Department, Govt. of
India. This is the only Central Government Public Sector Undertaking engaged in manufacturing
of salt. The Company started its business in January, 1959. Later government owned salt mines
located at Mandi (HP) on 1st May, 1963. Subsequently the Sambhar Lake Salt source was
transferred to a newly formed subsidiary Company, Sambhar Salts Limited, registered as on
30.9.1964 in terms of V.T.Krishnamachari Award. "Sambhar Salts Limited") is having a large
production area at Sambhar, Gudha & Nawa. Hindustan Salts Limited is having its unit at
Kharaghoda, Mandi Mines & Sales Depot at Ramnagar. Hindustan Salts Limited (A Govt. of
India Enterprise) & its Subsidiary Company Sambhar Salts Limited are having its com posit e
registered office at G -229, Sitapura Industrial Area, Jaipur-302022.
II. OBJECTIVE
The Hindustan/ Sambhar Salts Limited intends to appoint a firm of Charted Accountants as its
Internal Auditor for the financial year 2019-20 based on their experience. The firms should
furnish the complete details of experience, competence relevant to the work, detailed profile
of the firm and references alongwith their offer.
III. SCOPE OF WORK FOR INTERNAL AUDITOR
1. To check the books of accounts including cash and journal vouchers, Bank Accounts including
monthly reconciliation statements, the sale invoice including sales & price in reference of
agreement/prevailing rates.
2. To check purchases, compliance of procedures, Physical verification of Cash, store and Stocks.
3. Monthly /quarterly Statement of Profit & Loss and Balance Sheet & to check the re- conciliation
of debtors, creditors, advances etc.
4. Compliance of various statutory requirements Acts /rules such as Income tax, GST, PF &
Pension, ESI, Contract labour, Payment of wages Act, Minimum W ages Act, Gratuity,
Payroll and leave records etc.
5. Cash management policy should be checked.
6. Compliance of Accounting Standards as Applicable.
7. To check the system regarding the custodianship & safe guard of Assets (Monetary and
Non-Monetary) including fixed assets register and physical Verification thereof.
8. Internal control procedure system.
9. To conduct the Internal Audit of units including Corporate Office as under and submit the
quarterly report of each unit & Corporate office.
i) Hindustan Salts Limited
a. Corporate Office, Jaipur
b. Kharaghoda Unit, Kharaghoda, Gujarat
c. Mandi Unit, Mandi(Himachal Pradesh)
d. Ramnagar Unit, Ramnagar (Uttrakhand)
ii) Sambhar Salts Limited
Sambhar unit, Sambhar Lake (Rajasthan) including production units at Sambhar, Gudha and
Nawa.
10. TENDER TERMS AND ALLIED MATTERS:
A. Pre-tender Stage:
a) The tenders floated should be as per Guidelines for Tendering and Purchase Policy of the
Company and within the delegation of power of the officer etc.
b) Ensure the basis of preparation of estimates of work/package is realistic and logical.
B. Tendering Process:
Comparative Statement and the Notes should be checked based on random sampling method
to establish the reasonableness of rates (considering the special conditions, if any) and
irregularities to be reported.
C. Award of Work:
Check the Terms & Conditions of Letter of Award issued and Earnest money provided is kept
in safe custody and is sufficient and valid.
D. Contract Agreement:
An agreement should be executed within the time stipulated by Letter of Award ( LOA) and
does not have negative future impact.
11. PROJECT EXECUTION:
a. Physical and financial evaluation, variance study of actual costs vis-à-vis sanctioned
estimates, performance guarantee, in terms of the contract.
b. Analysis of variation in work contract and work executed, basis of rates billed and check for
required approval.
c. Scrutinize present status of work that is still to be executed, with respect to the contract for
any changes in Bill of Quantities having material impact on the project has acceptance of the
competent authority.
d. Where extension of completion date of the contracts is required, the delay should be well
justified, mention the reason of delay and whether approved by competent authority
Recommend Liquidated Damages as per the provisions of the contract, wherever required.
e. Action of officers not included in Delegation of Power should be supported by proper approvals
from competent authority.
f. In case of departmental work, Check for logical and realistic estimates is duly approved by
competent authority. Further, material procured and consumed should be properly reconciled at
frequent interval.
g. Comment on risk assessment and risk mitigation mechanism in the project and detection of
systemic flaws and suggestions for adopting corrective measures.
h. Compliance of various policies, plans systems and procedures.
i. In each unit Advice the company officers Circle wise and cost centre wise to prepare Cost
Sheet for production of salt/ Bromine/ Refined Salt/ Processed Salt etc. on monthly basis and
report of variance from the target.
j. Issue the various certificates for financial and other matters.
k. Report on slow moving items.
l. Advice and formulate a proper system for submission of MIS reports on weekly basis to the
HO once. Thereafter monitor the MIS on capacity utilization, Variance in production, sales
targets, Monthly cash flow, Statement of Profit & Loss, Store/Inventory Audit, funds utilization
etc. of Quarterly basis and report thereon.
m. Audit of commercial dealing including current assets and capital items.
n. Expenditure on social overhead for welfare /social purpose i.e. Hospital, club etc.
12. ESTABLISHMENT MATTERS:
A. Surprise attendance verification of manpower and Checking of wages and salaries of different
categories of employees including officers, contract staff, monthly and daily rated workers
on the basis of their respective terms and conditions of employment.
B. Random checks a few individual files and Service Book.
C. Ensure compliance of PF and ESIC laws in case of daily wages, manpower on roll and as well
as on contract.
D. Verify the records with special attention to LTC, Medical rules, Final Settlement, Travelling
allowances, Staff Loans/Advances.
E. Any other procedural checks as required by Internal Auditor like: For arbitration, court cases
and contingent liabilities, proper provisions should be calculated and booked.
G. Management's compliance/ action on comments of the Statutory Auditors in their Audit report.
H. Review of the deposit with Govt. Departments such as Electricity, W ater and Telephone etc.
and EMD held by the company after completion of work/ contract etc.
I. To give suggestion for improvement in production, marketing, performance.
13. REPORTING FORMAT
Internal Auditors are encouraged to suggest solutions for system improvement and to rectify
the errors or deficiencies and not merely confine to making observations but ensure
compliance of the audit observations at the Project site itself in their presence. Irregularities
of serious nature noticed during audit are to be reported to the Competent Authority through
a special report confidentially.
Internal Audit Reports should be prepared in five separate parts, namely:
Part-I: Executive Summary of significant observations;
Part-II: Action taken by the unit on previous Internal Audit Report;
Part-III: Important items which, in the opinion of the Auditor, should be brought to the notice of
the Management;
Part-IV: Matters which, though erroneous, are minor in nature and would be adequate, if
rectified locally;
Part-V: Suggestions for systems improvement;
The Auditor must discuss the draft report with the unit head before drawing up the final
report and make a specific mention of this in his report. The Auditor must hand over one copy of
the report to the unit head for necessary compliance and send a copy of the full Report (in soft
and hard both) duly signed and dated to the Company Secretary, HSL Corporate Office.
No para of the Internal Audit Report can be taken as closed unless satisfactorily
resolved. Outstanding paras will be carried forward to the next report and need to be
properly addressed in Part-II of the Internal Auditor's Report.
14. FREQUENCY OF AUDIT
All Units including Corporate Office are to be audited on quarterly basis.
Calendar for Routine Audit, where Internal Audit is to be done on quarterly basis:
Phase Period Covering Reports to be submitted
st th
Phase I 1 April to 30 June 31st July
Phase II 1st July to 30th Sep. 30th Oct.
Phase III 1st Oct. to 31st Dec. 31st Jan.
Phase IV 1st Jan to 31st March 30th April
Calendar for on-going projects, where Internal Audit is to be done on semi-annual basis:
Phase Period Covering Reports to be submitted
Phase I 1st April to 30th Sep 15th Nov
Phase II 1st Oct to 31st Mar 15th May
Any other work related to Internal Audit as assigned by management or any matter which
Internal Auditor may desire to report to management.
IV. TIME FRAME FOR COMPLETION OF INTERNAL AUDIT:
The Auditor has to complete the audit till 7th of the next month for ending Quarter of the
financial year. For eg. Apr-June Quarter submission date 7th July and for the last quarter date
of submission will be 15th April.
V. Travelling Allowance (TA) & Daily Allowance (DA) TO THE AUDITORS
Company is having Corporate Office, Jaipur preferring to appoint Internal Auditor having office
at Jaipur. As per exigency of work Auditor needs to visit our units and as such company will
consider the reimbursement of TA & DA from Jaipur only as per rules. If any one comes /start
journey, other than from Jaipur, the TA & DA shall be restricted from Jaipur only.
VI. TERMS OF PAYMENT
20% of Contract Value shall be released on receipt of 1st Quarter Report.
20% of Contract Value shall be released on receipt of 2 nd Quarter Report.
20% of Contract Value shall be released on receipt of 3rd Quarter Report.
20% of Contract Value shall be released on receipt of 4th Quarter Report.
20% of Contract Value shall be released on finalisation of Statuary Audit.
VII. SUBMISSION OF OFFERS
i) Bidders are required to submit Cost of Bid document amounting to Rs.500/- (Rs. Five hundred)
by Demand Draft in favour of "Hindustan Salts Limited" payable at Jaipur. Tenders without cost
of tender form shall be rejected out rightly.
ii) Offers are to be submitted in a sealed envelope, in the manner prescribed below:
(a) Duly signed Tender Documents on each page as token of acceptance of all terms and
conditions, Annex-I and Cost of Bid Document Rs. 500/- (Rs. Five hundred) by
Demand Draft in favour of "Hindustan Salts Limited" payable at Jaipur / Proof of
Deposition of Cost of Bid Document in company account through NEFT/RTGS should be
submitted in a Separate ENVELOPE ONE, cover super scribing "Technical Bid".
(b) Financial Bid ( Annex-II) in the Prescribed Performa should be placed in separate sealed
cover ENVELOPE TWO super scribing "Financial bid".
(c) Both the sealed covers should be submitted in separate sealed cover ENVELOPE THREE
super scribed as mentioned below:
1. TENDER FOR "Appointment of Internal Auditor for HSL & SSL for F.Y. 2019-20"
2. HSL'S TENDER NO.01 (Com)Purchase/2019-20
3. DATE OF SUBMISSION OF TENDER::-24th April, 2019 up to 15:00 hrs.
4. Name & Address of Bidder should also be mentioned on each envelop.
(d) Rates shall be written in figures as well as in words. W here there is any difference between
prices quoted in figures or words amount, lowest among them shall prevail. Tender should be
free from over writings. The Bidder should duly attest all corrections and alterations.
VIII OPENING OF TENDERS:
i) Last date and time for receipt of Tender is 24th April, 2 01 9 up to 15:00 Hours at office of
D y . G e n e r a l M a n a g e r ( C & L ) Hindustan Salts Limited, G -229, Sitapura Industrial
Area, Jaipur-302022.
ii) Technical Bids shall be opened on 24 t h April, 2019 at 15:30 hours at G -229, Sitapura
Industrial Area, Jaipur-302022.
iii) Price Bids of only technically qualified Bidders shall be opened and date of opening of Price Bid
shall be notified to all qualified bidders.
iv) If the last date of receipt & opening of Tenders happens to be declared a holiday, the tenders
will be received and opened on the next working day at the same time.
IX. EVALUATION CRITERIA:-
S. No. Criteria Max Evaluation Criteria
1. Nature of Experience
a. Public Sector Undertaking Audit. 20 2 Marks Per Audit
No. of Internal Audit assignments of
b. 20 1 Marks Per Audit
Corporate Audit
Firm experience in Number of Years
c. 20 1 Marks Per 2 Years
from attending first audit
d. Number of professionals
No. of FCA's 3 Marks per FCA
No. of ACA's 2 Marks per ACA
40 1 Mark per Article
No. of Article clerk/paid staff-
clerk/paid staff
Minimum 60% marks to
Total Marks for Nature of Experience be obtained by Bidder
100
for Technical
Qualification
NOTE:
a. Technical Qualification: Information in Annex-I is essentially to be provided by the bidders.
Bidders are required to submit necessary supporting documents, required as above for the
Evaluation Criteria along with duly filled evaluation criteria table as per Annex-I. In absence of
duly filled form in Annex-I along with supporting documents, the tender shall be rejected out-
rightly. Bidders obtaining minimum 60% marks in Annex-I for Nature of Experience Criteria
shall be Technically Qualified.
b. Financial Bid Evaluations: Financial Bid to be submitted by the bidders as per Annex-II.
Only technical short listed bidders shall be considered for financial evaluation and date, time
and place of opening of the financial bid shall be informed to all the technically qualified bidders
before opening of the financial bid.
c. Minimum Fees of Rs. 30,000/- Per Annum Per Company shall be paid for the scope of
work as mentioned in the tender document. However bidder submitting Proposal for less than
the minimum fees will also be considered subject to being technically qualified. Technically
qualified bidder offering the minimum Professional Fees as mentioned in the Financial Bid
shall be considered as L1 party. In case more than one technically qualified party is offering
similar lowest professional fees, than out of those parties, the party having higher marks in
Nature of Experience criteria will be considered as L1.
d. Bidder shall pay Rs.500/- by Demand draft in favour of Hindustan Salts L imited, payable at
Jaipur being cost of tender documents. Tender without cost of tender form shall be
rejected out rightly.
e. Technically qualified bidder may be considered for both the Companies i.e. HSL and SSL, if the
bidder is L1 party for both the companies separately as per Financial bid (i.e. Annex-II),
otherwise technically qualified bidder will be considered for that company only wherever bidder
is L1 party as per Financial bid (i.e. Annex-II).
X. UNDERTAKING TO BE FURNISHED BY THE BIDDER:
Following Professionals shall be deployed by the Internal Auditor for attending one
company's assignment.
S.No. Particulars No. / Man Hrs. Remarks
1. No. of FCA's/ ACA's for the assignment
No. of Articled clerk/paid staff for the
2.
assignment (man hrs.)
For any further information, the interested firms may contact the office of Hindustan Salts
Limited, Jaipur on any working days
DATE: SIGNATURE AND SEAL OF THE BIDDER
Hindustan Salts Limited
(A Government of India Enterprise)
CIN: U14220RJ1958GOI001049
Registered Office: G-229, Sitapura Industrial Area, Jaipur-302022,(Raj.)
Phone No.0141-2771427, FAX No. 0141-2771449
Subsidiary: SAMBHAR SALTS LTD
CIN: U14220RJ1964GOI001188
Unit : Sambhar Lake, Pin- 303604, Dist. - Jaipur (Rajasthan)
Phone : 01425-228249; Fax : 01425-228244
E-mail: purchase@indiansalt.com Website: www.indiansalt.com
Annex-I
APPOINTMENT OF INTERNAL AUDITOR
NAME OF FIRM: ................................................................................................................
ADDRESS : .....................................................................................................................
.............................................................................................
EVALUATION CRITERA
As per clause-IX, the party shall fill the following and obtain the marks himself.
Based on supporting documents submitted by the bidder, Company will verify the
same.
Number of Based on (2)
Marks as
S. Maximum audit/ and (4) Marks
Eligibility criteria verified by the
No. marks years/ to be filled by the
Company
partners bidder
(1) (2) (3) (4) (5) (6)
a. Public Sector Undertaking Audit
(2 Marks Per Audit) 20 Marks
b. No. of Internal Audit assignments
of Corporate Audit. 20 Marks
(1 Mark Per Audit)
c. Firm experience in No. of Years
from attending first audit) 20 Marks
(1 Mark Per 2 Years)
d. Number of professionals
No. of FCA's
( 3 Marks per FCA)
40 Marks
No. of ACA's
(2 Marks per ACA)
No. of Article clerk/paid staff
(1 Mark per Article clerk/paid staff)
Total 100 Marks
Date : SIGNATURE AND SEAL OF THE BIDDER
Place: Signature of
HSL/SSL
Annex- II
Hindustan Salts Limited
(A Government of India Enterprise)
CIN: U14220RJ1958GOI001049
Registered Office: G-229, Sitapura Industrial Area, Jaipur-302022,(Raj.)
Phone No.0141-2771427, FAX No. 0141-2771449
Subsidiary: SAMBHAR SALTS LTD
CIN: U14220RJ1964GOI001188
Unit : Sambhar Lake, Pin- 303604, Dist. - Jaipur (Rajasthan)
Phone : 01425-228249; Fax : 01425-228244
E-mail: purchase@indiansalt.com Website: www.indiansalt.com
APPOINTMENT OF INTERNAL AUDITOR
FINANCIAL BID
NAME OF FIRM: ..........................................................................................................
ADDRESS : ................................................................................................................
.................................................................................................................................
S.NO. DETAILS AMOUNT (RS.)
IN FIGURES :
ANNUAL PROFESSIONAL FEES FOR
1. INTERNAL AUDIT OF HINDUSTAN
SALTS LTD. FOR YEAR 2019-20 IN WORDS :
IN FIGURES :
ANNUAL PROFESSIONAL FEES FOR
2. INTERNAL AUDIT OF SAMBHAR
SALTS LTD. FOR YEAR 2019-20 IN WORDS :
NOTE:
A. G S T e t c . shall be paid extra as applicable.
B. Bidders are required to submit following with their offer duly signed tender document in
token acceptance of terms and conditions mentioned in the document and all other
requisite details along with proposal.
DATE:
PLACE:
SIGNATURE AND SEAL OF THE BIDDER
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