Security Printing & Minting Corporation of India Limited
(A Mini Ratna Category – I CPSE)

(Wholly owned by Government of India)
16th Floor, Jawahar Vyapar Bhawan, New Delhi -110001

Standard Bidding Document (SBD)

TENDER FOR ENGAGING PARTNERSHIP/LIMITED LIABILITY PARTNERSHIP
FIRMS OF CHARTERED/COST ACCOUNTANTS FOR CONDUCTING INTERNAL
AUDIT IN NINE UNITS AND CORPORATE OFFICE OF SECURITY PRINTING &
MINTING CORPORATION OF INDIA LIMITED (SPMCIL) FOR THE FINANCIAL
YEAR 2021-22.

Tender No. SPMCIL/FIN/254/EOI/IA/2020 Dated: 06.04.2021

This Tender Document Contains 30 Pages

Details of Contact person in SPMCIL, New Delhi regarding this tender:

Deputy Manager (Materials),
SPMCIL, 1st Floor, Jawahar Vyapar
Bhawan, New Delhi - 110001

Page 1 of 30
CONTENTS

SECTION PARTICULARS Page
NO. No.
1. Notice Inviting Tender (NIT) 3-4
2. Format of Application 5-9
3. Special Instructions and Document Lists 10-11
4. Objectives of Internal Audit 12
5. Special conditions 13
6. List of requirement (Scope & Extent of coverage of Audit ) 14-16
7. Selection Criteria 17-19
8. Audit fee & Reporting Requirements 20-22
9. Qualification / eligibility criteria 23
10. Tender form 24
11 Price Bid format 25
12 Man-days requirement 26
13. EMD 27
14 Timeline 27
15 Security deposit 29-30

Page 2 of 30
SECTION -I NOTICE INVITING TENDER (NIT)

Security Printing & Minting Corporation of India Limited
(A Mini Ratna Category – I CPSE)

(Wholly owned by Government of India)
16th Floor, Jawahar Vyapar Bhawan, New Delhi -110001

No. SPMCIL/FIN/254/EOI/IA/2020 Date: 06.04.2021

SPMCIL invites sealed tenders from eligible and qualified tenderers for the following service: -

Description Earnest Money (In Rupees)

TENDER FOR ENGAGING PARTNERSHIP/LIMITED Nil.
LIABILITY PARTNERSHIP FIRMS OF (Bidders have to submit the Bid
CHARTERED/COST ACCOUNTANTS FOR Security Declaration along with
CONDUCTING INTERNAL AUDIT IN NINE UNITS Technical Bid as mentioned at
AND CORPORATE OFFICE OF SPMCIL FOR THE sl. no.3 below)
FINANCIAL YEAR 2021-22

Type of Tender Two Bid, National Competitive Bidding (Open
Dates of submission of tender documents Tender)
Up to 15.00 Hrs till 07.05.2021 on all working
days (Saturday and Sunday is weekly off in
SPMCIL)

Place of Tender Box for submission of Bids Security Printing and Minting Corporation of
India Ltd, 16th Floor ,Jawahar Vyapar Bhawan
Closing date and time for receipt of tenders ,STC, Janpath New Delhi.
Time and date of opening of tenders Up to 15.00 Hrs till 07.05.2021

07.05.2021 at 15.30 Hrs.

Place of opening of tenders SPMCIL corporate office

Page 3 of 30
1. Interested tenderers may obtain further information about this requirement from the above
office.
2. Tenderer may download the tender documents from the web site www.spmcil.com and submit
its tender by utilizing the downloaded document.
3. Bid Security Declaration

EMD amount is Nil. However in place of EMD, all the bidder firms have to submit a seal &
sign “Bid Security Declaration” accepting that if the firm withdraw or modify their bid during
the period of bid validity after opening of tender, they will be suspended for a period of 3 years
from the date of opening of tender. (As per MOF letter no. F.9/4/2020-PPD dated 12.11.2020.)

In addition to above, firms participating as MSE/NSIC/DIC etc., needs to enclosed the valid
registration certificate.
4. Tenderers shall ensure that their tenders, duly signed and stamped on each page and complete
in all respects as per instructions contained in the Tender Documents, are dropped in the tender
box located at the address given below on or before the closing date and time, failing which the
tenders will be treated as late and rejected.
5. In the event of any of the above mentioned dates being declared as a holiday/ closed day for
the SPMCIL the tenders will be received/ opened on the next working day at the appointed time.
6. Quotation received by, e-mail will be ignored.
7. Quotations must be enclosed in a sealed cover both bearing the Tender Number and due date.
Address for tender document.
Deputy Manager (Materials),
SPMCIL, 16th Floor, Jawahar Vyapar
Bhawan, New Delhi - 110001

Page 4 of 30
Section – II: FORMAT FOR APPLICATION

1. Name of the Firm:

2. Registration No. of the Firm:
(Institute of Chartered/Cost Accountants of India)

3. i. Date of Registration of the Firm :

ii. Type of firm : Partnership firm/ LLP firm/Proprietor

4. Details of Head Office & Branch Office(s): Head Office:

Address Date of Contact E-mail

Establishment No(s)

Branch Office 1 Date of Contact E-mail
Address
Establishment No(s)
Branch Office 2
Address Date of Contact E-mail

Establishment No(s)

(Insert further branch office(s), if any)

Page 5 of 30
5. Details of Partners in the Firm/Limited Liability Partnership:

S.No. Name of the Partner Membership Membership CISA/DISA/IS Date of

No. Status A or Joining

ACA/ACMA/ equivalent the firm

FCA/FCMA qualification As

Partner

1

2
3
4

5

6

(Please attach certificate issued by institute of chartered accountants of India (ICAI)/ Institute of
cost accountants of India (ICAI) in support of information furnished at Sl. No. 1, 2, 3, 4 and 5
above)

6. Is the partner of Firm/LLP:-

Sr.

No. Particulars. Yes/ No

a. Dismissed Government Servant.

b. Removed from approved list of vendors.

c. Demoted to a lower class of vendors.

d. Having business banned/suspended by any government in the past.

e. Convicted by a court of law.
Retired engineer/official from engineering Department of Govt. of India

f. within last two years.

Direction of partner of any other company/ firm enlisted with CPWD or any
g. other department.
h. Member of Parliament or any State Legislative Assembly.

7. Is any Partner/Person working with the applicant is a near relative of the officer/ official of
SPMCIL: Yes/ No.

Page 6 of 30
8. Details of Qualified Assistants (i.e Chartered/Cost Accountants employed by the firm)

Sl.no. Name of the Assistant Membership Whether
1 No.

ACA/ACMA/FCA/FCMA Date of joining

(Please attached the firm as

membership certificate qualified

issued by respective assistant

institutes for each

qualified assistant)

2
3

4

9. Details of Experience in PSU Sector:

Sl.no. Name of the Company Year of Type of audit – whether
1. audit statutory/internal audit
(please attach copy of
appointment letter for
each year & for every
company)

2.

3.

10. Details of Experience in conducting audit in organization working on SAP ERP Platform :

S.NoName of the Year Type of Audit –
. Company of Whether
Audit Statutory/Internal
1
Audit (Please attach copy of appointment letter
for
each year & for every company)

2

3

:
Page 7 of 30
11. Income Tax PAN No. of the Firm

12. GST Tax Registration No. :

13 Firms of Chartered Accountants registered as MSME will submit the certificate for

registration as MSME.

14 Bank details for EFT :

1. Bank Name

2. Branch Name and Address

3 Bank Account Number & Type of Account i.e Saving/Current

4. IFSC Code

Note: A Cancelled Cheque is to be enclosed in support of details as filled in Sr. No. 13 above.
15 Turnover of the Firm:-

TURNOVER (F.Y.)

2019-2020 2018-2019 2017-2018

( in Rs. Lakhs )

16 It is confirmed that all the requirements as per section 3 to the tender documents have
been complied with.

17 We confirm that we have not taken any deviation from the terms & conditions, of the tender
documents. A copy of complete tender document duly signed and stamped on all pages as a
token of acceptance of all terms & conditions is attached.

I/We certify that the information given above is true to the best of our knowledge. I/We also
understand that if any of the information is found wrong, my/our tender will not be considered.

Date …………………..
Signature of Partner with
Name & Seal of the Audit Firm

Note: 1. List of documents to be submitted along with the applications: - Please refer to the
instructions mentioned at section no. III of the tender.

Page 8 of 30
Section III: SPECIAL INSTRUCTIONS TO AUDIT FIRMS AND DOCUMENT LIST

a. Instruction to Audit Firms:

1. Format of Application must be completely filled in. Incomplete applications will be rejected out-
rightly.

2. Please ensure that date of opening of Head Office, Branch Office, entrance dates of all Partners
into the firm, date of joining firm as qualified assistants should be invariably indicated in the
application.

3. All bids will be evaluated on the basis of the documents furnished along with applications only.
Any additional document received, after last date & time of receiving the bids as stipulated in the
Notice Inviting tender, will not be entertained. However, in case the Technical evaluation
committee (TEC) finds it necessary to call for some document/clarification, then that document
as called for will be taken into account during evaluation.

4. Since, all the applications will be evaluated strictly on the basis of Selection and eligibility
Criteria as per section VII & IX respectively, please avoid attaching unsolicited
information/documents so as to enable us to process applications expeditiously.

5. All submitted documents should be signed by a Partner with his name and under the seal of the
firm.

6. The bid would consist of following:-

1. Envelope No. 1 to contain the following:
Bidder firms sealed & signed “Bid Security Declaration” accepting that if the firms withdraw or

modify their bid during the period of bid validity after opening of tender, they will be suspended

for a period of 3 years from the date of opening of tender. (As per MOF letter no. F.9/4/2020-

PPD dated 12.11.2020.)

Firms participating as MSE/NSIC/DIC etc., will enclose the valid registration certificate.

2. Envelope No. 2 to contain the Technical Bid as per note 1 at section VII.

3. Envelope No. 3 to contain the Financial Bid as per format prescribed on section XI.

Envelope No. 1 & 2 form First part, will be known as 'Technical Bid', and the Envelop No.
3 will form second part i.e. 'Financial bid'. Tenderer shall seal separately 'Technical Bid'
and 'Financial bid' and covers will be suitably super scribed. All these three sealed covers
shall be put in a bigger cover super scribing the Tender No. & date and marked in bold
letters “Application for engagement of Chartered Accountant Firm/Cost Accountant Firm
for conducting internal audit of FY 2021-22” thereon and sealed. The name and address of
the firm must also be indicated on the body of the envelope.

Application not accompanying “Bid Security Declaration” would be summarily rejected and
their Technical and Financial bids will not be opened. No communication in this regard
will be entertained in future.
Application may be submitted by hand or by post/courier to the office of The Deputy Manager
(Materials), Security Printing and Minting Corporation of India Limited, Corporate Office,
1st Floor, Jawahar Vyapar Bhawan, Janpath, and New Delhi-110001. SPMCIL does not take any
responsibility for loss of application in transit. Applications sent through E-mail will not be
considered.

Page 9 of 30
7. Any application received after the stipulated date and time, due to any reason whatsoever, will be
rejected out-rightly.
b. List of documents to be submitted along with the application:
Interested audit firms are advised to go through contents of the tender documents carefully and
submit all self-attested copies of the following documents in proper sequence along with the bid
as described hereinafter:

1. Registration certificate of the firm issued by the Institute of Chartered Accountants of India and /
or Institute of Cost Accountants of India, Information related to year of establishment of Head
Office & Branch Office(s), addresses, details of partners and their membership nos. etc. as
indicated in the Certificate will be treated as conclusive and final information for evaluation of
tenders.

2. Membership certificates of the qualified assistants issued by the Institute of Chartered
Accountants of India and / or Institute of Cost Accountants of India.

3. Copies of appointment letters for Statutory/Internal audit in organizations working on SAP
ERP Platform.

4. Copy of PAN Card.
5. Copy of GST Registration.
6. A cancelled cheque of the Bank to which Fee payments will be made.
7. A copy of complete tender document duly signed and sealed as a token of acceptance of all

terms and conditions.

Page 10 of 30
Section IV: OBJECTIVES OF INTERNAL AUDIT

S. No. Objectives

1. To review and evaluate internal control systems and procedures to determine reliability

and integrity of information and documents.

2. To ensure that the SPMCIL maintains proper accounting records as required by law and

follows prescribed accounting standards and practices and policies consistently.

3. To assess adequacy of systems and procedures for procurement, obtaining sanction for

disbursement and utilization of resources.

4. To ensure compliance of statutory laws, rules and regulations.

5. To review corporate Governance practices.

6. Evaluation of performance management system with reference to yearly plan and

budget.

7. To assess the adequacy of the internal financial control systems and procedures for

safeguarding the interest of the SPMCIL, detecting fraud or irregularities and

safeguarding the assets of the SPMCIL.

8. To review Internal Financial control on financial reporting.

9. Fixed Asset Verification

10. Inventory Verification.

Page 11 of 30
Section V: SPECIAL CONDITIONS OF CONTRACT (GCC)

i. Appointment of Audit firm’s will be done Unit wise.
ii. The SPMCIL reserves its right to accept or reject any application/s without assigning any

reasons. The decision of the SPMCIL for selection of the Firms will be final and binding
upon the parties participating in the tender.
iii. Internal Audit shall be conducted in four phases i.e. 1st Phase covering period from
01.04.2021 to 30.06.2021, 2nd phase covering period from 01.07.2021 to 30.09.2021, 3rd
phase covering period 01.10.2021 to 31.12.2021 and 4th phase covering period from
01.01.2022 to 31.03.2022.
iv. The Internal Auditor will ensure that the information obtained in respect of the operations of
the Unit is maintained in strict confidence and secrecy. A certificate towards maintaining
confidentiality is to be provided by the Internal Auditor at the time of acceptance of Audit
assignment.
v. The appointment of the Audit Firm will be for one year i.e. for 2021-22 and may be extended
on yearly basis in 2nd i.e. for F.Y 2022-23 subject to satisfactory performance of the firms on
same rates and terms & conditions.
vi. If progress/performance of the audit firm is not found satisfactory by SPMCIL or there
are in-ordinate delays in submission of reports, the management reserves the right to
terminate the appointment of the Firm.
vii. The Audit firm will be debarred from getting, in future, Internal Audit assignments in
SPMCIL in the following cases:
a. If the Firm obtains the appointment on the basis of false information/false statement at

the time of submission of application/documents for the tender.
b. The Audit Firm is found to have sub-contracted the work.
c. If the Firm does not take up audit in terms of the appointment letter.
d. If the Firm does not submit Audit Report, complete in all respect, in terms of the

appointment and within the specified date.
e. If the firm is found to be divulging the information of the operations of the company.
viii. Please refer to our website for further details
“http://www.spmcil.com/spmcil/uploaddocument/git.pdf (GIT contains 32 pages and
will form part of this tender document”
And Please refer to our website for further details
“http://www.spmcil.com/spmcil/uploaddocument/gcc.pdf (GCC contains 28 pages and
will form part of this tender document)”
ix. The tenders shall remain valid for acceptance for a period of 120 days.
x. The selected firms shall give security deposit.

Page 12 of 30
Section VI: LIST OF REQUIREMENT (SCOPE AND EXTENT OF COVERAGE OF
AUDIT

1.

Sl. No. Scope Periodicity/Extent
of Coverage
1. Sales & Revenue : Quarterly – 100%
Verification of all heads of revenue along with all the supporting Quarterly – 25%
Documents. Half yearly – 50%
Quarterly – 100%
2. Procurement (pre award and execution) :
(a) Contracts of value up to Rs.5 lakhs Quarterly – 100%
(b) Contracts of value between Rs.5 lakhs to Rs.10 lakhs
(c) Contracts of value above Rs. 10 lakhs Quarterly – 50%
Ensure that the guidelines as per procurement manual are duly
Complied with.
It will also include checking of performance bond/guarantee for
validity and safe custody, insurance and risk management
Procedure.

3. Contracts on nomination basis :
Verification of contract/PO awarded on nomination basis and
single tender basis valuing Rs.1.5 lakh and above.

4. Contractors’ bills :
Checking of running account bills with respect to quantity and
quality of work, certification of work, adjustment of advances,
application of penalty clause etc. as per the terms of contract.

5. Payroll : Verify whether

(a) Salaries, wages and other deductions are authorized and Quarterly – 100%

recorded on a timely basis and payroll deductions are

determined in accordance with legal requirements and are paid to

Government and other specified parties as per specified timelines.

(b) All authorized employee benefit plans and related costs are Quarterly – 50%

appropriately controlled and administered.

(c) PAO claims are properly administered. Half yearly– 100%

6. Human Resource & Establishment:

(a) Leave records Half yearly – 50%

(b) Payment of all types of advances to the employees Quarterly – 100%

(c) Review of sub ledgers and recovery of advances Quarterly – 100%

(d) LTC records Half yearly – 50%

(e) Pay fixation Half yearly – 100%

(f) Training & development Half yearly – 100%

Bank reconciliations:
7 Verification of BRS of all the bank accounts including outstanding Quarterly – 100%

entries in the previous BRS.

Page 13 of 30
Receivables: Quarterly -50%
8. Periodical age wise/unit wise analysis of all receivables with Quarterly -50%

respect to pricing, tenure of credit and collection.

Accounts :
9 Vouching of all vouchers (cash, bank, JVs)

Guest House:
10. (a) To check the level of utilization i.e. occupation of rooms by Half yearly – 50%

guests.

(b) Receipt of revenue

(c ) Purchase of consumables

(d) Purchase and use of assets

(e) Repairs and maintenance of assts.

11. Inventories:

(a), (b), (c) – Yearly

(a) Periodical Physical verification of inventories. -50%

(b) Reporting the variances as per physical verification and as

per books of account

(c ) Valuation in accordance with the applicable accounting

policies prescribed by ICAI

(d) Identification of slow moving and excess inventories and its (d) – quarterly – 50%
periodical reporting to management with suggesting measures.

12. Fixed Assets:

(a) Conduct of the Physical verification of fixed assets in Yearly – 100%
accordance with the applicable Accounting policies.

(b) Reporting the variances as per physical verification and as Yearly – 100%
per Books of Account.

(c) Check whether proper records are maintained including Fixed Yearly – 100%

Assets Register and Depreciation is properly calculated and

accounted for in accordance with the applicable Accounting

policies.

Provisions:

13 Yearly – 100%

To ensure that all the known liabilities have been provided after

duly authorization including retirement benefits and claims in

respect of employees. To ensure actuarial valuation as per

applicable accounting standards.

Payables:

14.
Periodical age-wise/ party wise analysis of all payables in respect Quarterly.
to creditors- Domestics, Imports Capital Projects-EMD, Security
Deposit etc.

Page 14 of 30
15. Township Half yearly – 50%
(a) To check whether the allotment, occupation and vacation of
quarters is in accordance with the laid down practices.

(b) Receipt of revenue.

€ Stores management.

(d) Repair and maintenance of building and roads.

16. Investments:

(a) Periodic physical verification of investment and deposits

(b) To ensure that the booking of income on investments and Yearly – 100%

deposits as per the terms of investment made (only at corporate
office)

€ Ensure that the DPE guidelines on the subject are duly complied

with.

17. Compliance to DPE guidelines : Quarterly – 100%
To go through the DPE guidelines and compliance thereof in (only at corporate
company and point out any variation /deviation. office)

18. CSR activities : Half yearly – 50%
(a) Contracts of the value below Rs. 10 Lacs

(b) Contracts of the value equal to or more than Rs. 10 Lacs Half yearly – 100%

IFC:
(a) Perform a diagnostic review of existing internal financial control
system from the management’s perspective and to identify Yearly – 100%
19. deficiencies, if any. Provide recommendations to mitigate such
deficiencies.
(b) Identifying significant accounts and mapping with business
processes and sub-processes for identification of financial reportingYearly – 100%
risks (materiality, quantitative & qualitative judgment),
Recommend on documentation guidelines and Advice on updating
the IFC Framework.
€ Provide recommendations on ways that the SPMCIL may address
control weaknesses.
(d) Review of risk and control matrices including documentation ofYearly – 100%
controls i.e., entity level controls, pervasive IT controls and process
level controls.
€ Any other activities/studies/reports if necessary, in connection
with development of Internal Financial Control Framework not Yearly – 100%
covered above.

Page 15 of 30
Statutory Compliances :
To ensure compliance of all the applicable statutes and laws
governing the organization that all the taxes and statutory dues
20.
are deposited in time and the required reports and returns have Quarterly – 100%
been filed periodically on time.
Adjustment of advance given in respect to work orders and their
21. adjustment with work done and adjustment of advances (CPWD). Quarterly-100%
22. Report on the inter unit reconciliation to be done monthly.

Quarterly-100%
23. Other areas which SPMCIL Management may consider

necessary in the course of working of the units.
Note: The firm undertaking internal audit has to exercise their discretion and apply their minds &
rely on their judgment so as to ensure that all essential and significant areas of checking have been
covered by them and no important area of checking has been left out.

1.

Page 16 of 30
Section VII: SELECTION CRITERIA (POINT ALLOCATION)

Sl. Particulars Points to be allocated Maximum Supporting Documents
No Points

1. Year of establishment of the 10 Years 10 (ten) Registration certificate of the
firm issued by the Institute of
Audit firm/Limited Liability 1 Point for each year. Chartered accountants of
India and / or Institute of Cost
Partnership Firm. Accountants of India.
Information related to year of
Cutoff date shall be establishment of Head
Office(s) & Branch office(s),
31.12.2020. addresses, details of partners
and their membership nos.
etc. as Indicated in the
Certificate.

2. No. of Partners in a) Four (4) points for 20 (twenty) Registration certificate of the

the Firms/Limited Liability each Partner who is firm issued by the Institute of

Partnership Firm who with ACA/ACMA. Chartered accountants of

the Firm for a minimum India and / or Institute of Cost

period of year as on date of b) Five (5) points for Accountants of India.

application. each Partner who is Information related to year of

FCA/FCMA. establishment of Head

Office(s) & Branch office(s),

addresses, details of partners

and their membership nos.

etc. as Indicated in the

Certificate.

3. No. of Qualified Assistants a) FCA/FCMA 15 (fifteen) Copy of details filed with the
(Chartered/Cost accountants) 03 per Institute of Chartered/Cost
employed with the firm. person Accountants of India.

b) ACA/ ACMA 2

per person

4. Experience of the Firm in 3 (Three) per year of 15 (Fifteen) Copies of appointment letters

Organization working on SAP Audit (fraction of the /orders for statutory audit/

ERP Platform as Statutory year to be ignored). internal audit of any entity.

/Internal Auditor (Experience Certificate shall be submitted

in 2020-21 not to be from the entity that they are

considered). SAP compliant.

Page 17 of 30
5. Experience of the firm in Mini-ratna and above 20 Copies of appointment
letters/orders for internal
internal audit of 5 (Five) per audit (Twenty) audit in any Central /State
Govt. PSU.
Central/State PSU (Audits of and other PSUs 2 per (Excluding banks and
insurance PSUs.)
2020-21 not to be audit.

considered)

6. Turnover of the internal audit a) More than Rs. 200 20 (twenty) Copies of relevant pages of

clients during F.Y. 17-18 , 18- Cr.& upto Rs.- 500 Cr. audited financials for all the

19 & 19-20 per client per year clients for F.Y. 17-18, 18-19

(2 points) and 19-20 to be enclosed.

b) More than Rs. 500
Cr.& upto Rs. 1000 Cr.
per client per year (4
points)

C) More than 1000Cr.
per client per year
(6 points)

Notes:-

1. All above mentioned supporting documents along with application (format of application) will
constitute “Technical Bid”.

2. The Bidder will mention self-evaluated score against each parameter and will provide related
documentary evidence against each parameter given above. The self-evaluated scores of the Bidder
will be verified by the Evaluating Committee of SPMCIL based on the documentary evidence
provided. The scores given by the Committee after verification with the documentary evidences as
provided by the Bidder shall be considered final.

3. Only those firms who secure at least 70% and above marks as per selection criteria mentioned above
at section VII shall be considered for opening of Financial bid.

4. In case of tie, the following sequence shall be adopted for selection:
a) The Audit Firm having longer experience will be given preference based on the year of
Establishment.
b) The Audit Firm having office in the City of the SPMCIL unit for which evaluation is
being done.
c) The Audit Firm having office in the State of the SPMCIL unit for which evaluation is
being done
d) The Audit Firm with a higher number of Fellow Members of the Institute of Chartered
Accountants or Cost Accountants of India as partners will be considered.
e) The Audit Firm with a higher number of Associate Members of the Institute of chartered
Accountants and Cost Accountants of India as partners will be considered.

Page 18 of 30
For the purpose of selection of the Internal Audit Firm in case of tie, only clause (a) mentioned above
will be considered. However, in a situation where even after considering clause (a), the tie continues,
the remaining clauses i.e. (b) to (e) will be considered individually until the tie is broken.
On opening the financial bid :
In case the L1 firm is Non MSME, the price quoted by MSME firm within the range of
L1 +15% will be asked to match the price of L1 firm. In case the MSME firm matches
the L1 price, order will be placed on MSME firm. In case the MSME firm does not
match the price of L1 firm , the next lower offer of the MSME firm within the range
of L1 + 15& will be asked to match the price of L1 & so on.

In case no MSME firm (within the range of L1+15%) matches the price of L1
firm, order will be placed on L1 firm.

The present Statutory Auditors (as appointed by the C&AG) of the units will not be eligible for
bidding in compliance with the provisions of section 144 of the Companies Act, 2013.Accordingly,
the following shall also not be eligible for bidding:-

 Any of the partners of the firm doing Statutory audit of the units (to be referred as statutory audit
firm).

 Any of its parents, subsidiary or associate entity, if any,
 Any other entity whatsoever, in which the statutory audit firm or any of its partners have

significant influence or control.
 Any other entity whose name or trademark or brand is used by the statutory audit firm or any of

its partners.

Page 19 of 30
Section VIII: AUDIT FEE & REPORTING REQUIREMENTS

Audit fee

i. Audit Firms are required to quote the audit fees for Internal Audit of each unit separately as
per defined price bid format at section XI. Keeping in mind the minimum Man-days required
for each unit as given at section XII. It is to be noted that Evaluation of Firms shall be
done for each unit separately.

ii. If required man days are not fulfilled by the audit firm after award of contract then
payment will be deducted proportionately.

iii. No other expenses like TA/ DA / Boarding/Lodging will be reimbursed by the SPMCIL.
iv. GST or any other tax as applicable will be paid extra as per respective Tax Act.
v. The Firm shall be eligible for payment up to 25% of audit fee for each phase. Such fee shall

be released only after submission of report for that phase followed by the bill and all
supporting evidences/documents required to process such bills including wrap up discussion
report with management for each Phases.
vi. The bill of fees should be duly accompanied by details of man power deployed in each phase
of the audit assignment.
Reporting requirement

On completion of the Audit of the respective Audit Unit of each phase, the following steps should
be followed before finalization of the report and the partner of the firm should meet and discuss the
audit observations.

(i) The salient audit observations of the respective preliminary Audit shall be discussed with the
Head of Finance along with the GM of units so that timely corrective action may be taken
and based on the outcome, a draft composite Audit Report covering all the Audit areas within
the scope shall be compiled/prepared, including additional information if any, that may be
provided/obtained during such discussions and rectifications carried out on the instance of
audit. The report should also contain specific suggestions for improvements, if any.

(ii) Based on the outcome of the discussions, the Audit Report thus compiled shall be structured
as outlined hereunder:

Internal Audit Reports should be divided into five separate parts, namely:

Part-I Compliance and Report:

This part shall cover the comments of the Auditors on the adequacy of the compliance and action
taken for rectification of errors/discrepancies pointed out by previous auditor pertaining to earlier
phase and also Phase-I of the current year. It shall also contain the confirmation regarding
implementation of policies, systems, controls etc. to avoid the recurrence of such irregularities in
future. It may be ensured that the compliance report on audit observations pointed out in reports
relating to earlier audits is made and corrective actions taken on those points are furnished in the
Audit Report. In other words it may be ensured while conducting the audit, compliance report of the
audit observations pointed out in the earlier report of preceding period, is furnished along with the
corrective action taken. Physical Verification of Fixed Assets report shall also be given.

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Part-II Important Observations / Findings:
This part shall contain all such significant discrepancies observed during the current Audit

and the observations in which, the auditor feels immediate attention of management specifying the
financial implications, if any. In this part Auditor shall also bring the important areas requiring
improvement and their recommendation, if any. Also to indicate the improvements made by the
SPMCIL based on the audit observations. Further to report any deviations/observations from
policies, systems and procedures of SPMCIL.
Part-III Report on Testing of Effectiveness of Internal Controls:

Perform Internal Financial control Audit as given in Scope of Work and submit the report
giving recommendations on the ways that the SPMCIL may address control weaknesses. The
Auditors would be required to include their findings in Part-III of their report.
Part-IV Report on Contracts/POs placed on single tender & nomination basis:

It has been decided that internal auditors will report separately on Contracts/Purchase Orders
(POs) placed on single Tender/Nomination basis. The coverage of such contracts and the format for
such contracts and the format for such reporting is included in the statement below which may kindly
be adhered to.
Part-V Detailed Report:

In this part, the Auditor shall furnish the detailed results of the Audit and Auditors
confirmation whether SPMCIL’s system/guideline/propriety has been adhered to in the areas viz.
works including O&M contracts, procurement, operation, establishment records in Finance & HR,
establishment expenses, other expenses, depreciation, Commercial billing & its
realization/reconciliation, maintenance of fixed assets register, current assets, capital work in
progress, mandatory spares, stores, inter unit accounts, review of accounts, township, guest house
provision of liabilities.

The Internal Auditor’s report shall be in the same sequence as given in the scope of audit and
in case any item is not applicable to the audit unit, the same should be mentioned as nil.

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The report should be supplemented, in each Phase, by a statement indicating:

(I) Particulars of records along with their volume (i.e. total no. of vouchers in each category for each
phase) and value/volume checked as compared to the total volume and value of transactions viz.
BRV/BPV/CRV/CPV etc. Similar statistics are required with reference to audit of contracts with the
total no. of contracts awarded and the percentage of audit done.

(II) A report indicating the number of Tender/Contracts awarded on single tender & nomination basis in
two categories viz. (i) Value more than Rs. 5 Lac and (ii) Value up to Rs. 5 Lac and furnish the same
in the following statement indicating the contracts selected for review.

Sl.No. Package Awarded LOA No. Award Whether Proprietary Policies &
Name Party & Date Value (Rs.
Lac) items/Source Procedures for

Standardization/Urgency award of contracts

have been adhered

to (Yes/No), if No,

state the reasons

-

(III) A summary report indicating the important observations for each phase and for each area.
(IV) A statement indicating the audit personnel deployed (designation) including the visits of
partners and the period of audit for each substation. It is expected that the entire scope is covered in a
systematic manner and to facilitate the reporting as per the requirement.
(V)The report should be furnished for each audit unit/office separately.

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Section IX:QUALIFICATION / ELIGIBILITY CRITERIA

The qualification criteria are as under:-

i. Bidder firm should have conducted three Statutory/Internal audit in last 5 years of any
organisation working on SAP ERP Platform.

ii. Bidder firm should not have suffered any financial loss for more than one year during the last
three years.

iii. Audit firms should have office at one location (at least) out of below mentioned cities:-

a. Delhi/NCR f. Hyderabad

b. Mumbai g. Bhopal

c. Kolkata h. Indore

d Nashik i Hoshangabad

e Dewas

Only those bids that meet all the eligibility requirements shall be considered for Stage 2 i.e.
Technical evaluation.

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Section X: Tender Form

Date……….
To
SECURITY PRINTING &
MINTING CORPORATION Of INDIA LTD.
16TH FLOOR, JAWAHAR VYAPAR BHAWAN,
NEW DELHI - 110001
Ref: Your Tender document No. …………………………dated …………
We, the undersigned have examined the above mentioned tender enquiry document, including
amendment No. --------, dated ----------(if any), the receipt of which is hereby confirmed. We now
offer to deliver service in conformity with your above referred document for price quoted in
price bid, attached herewith and made part of this tender.
If our tender is accepted, we undertake to perform the services as mentioned above, in
accordance with the delivery schedule specified in section xiv of this document.
We further confirm that, if our tender is accepted, we shall provide you with a performance
security of required amount in an acceptable form in terms of GCC clause 6, read with
modification, if any, in Section V – “Special Conditions of Contract”, for due performance of the
contract.

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Section XI: Price / Financial bid format

Sl. Name of units Partner fee Qualified Assistants Grand total
no. (a ) assistants Fee (a+b+c))
Fee
(C)
(b)

1 IGM, Mumbai

2 IGM, Kolkata
3 IGM, Hyderabad

4 IGM, Noida

5 CNP, Nashik

6 BNP, Dewas

7 ISP, Nashik
8 SPP, Hyderabad

9 SPM, Hoshangabad

10 Corporate office,
Delhi

Note:-

(1) GST shall be paid extra as applicable.
(2) The fees mentioned above are for all the four phases viz, phase –I, phase –II, Phase –III &

Phase-IV
(3) The audit fees for financial year 2022-23 (if extended by one year) will remain the same as

quoted for the first year i.e. 2021-22.
(4) Firms have to quote fees unit wise as L1 will be decided unit wise. It is not mandatory for

firms to quote for all the units.
(5) Evaluation will be done for each unit separately based on the selection criteria mentioned at

section VII.

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Section XII: MAN-DAYS REQUIREMENT

Minimum man day requirement

S.No. Name of the units Partners Qualified Assistants(including at
Assistants least one semi qualified
1 IGM, Mumbai 20 assistant)
36
72

2 IGM, Kolkata 20 36 72

3 IGM, Hyderabad 16 24 48

4. IGM, Noida 16 24 48

5 CNP, Nashik 24 48 96

6 BNP, Dewas 24 48 96

7 ISP, Nashik 24 48 96

8 SPP, Hyderabad 12 24 40

9 SPM, Hoshangabad 24 48 96

10 Corporate office, Delhi 12 24 40

1. The firm has to quote rates separately against the each location mentioned above.

2. The allocation of manpower by audit firm amongst phases will be as follow:-

i) Quarter ended June : 25%

ii) Quarter ended September : 25%

iii) Quarter ended December : 25%

iv) Quarter ended March : 25%

3. The man-days requirement is exclusive of travel time.

4. For better monitoring of audit assignment, SPMCIL units shall maintain records of man power

deployed for each phase by the Firm. A man day shall consist of minimum 8 hours each day and

shortfall in working hours will be adjusted on pro rata basis. However, there will not be any

additional payment for the manpower deployed in excess of the minimum man days.

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Section XIII EARNEST MONEY DEPOSIT

i. The bidder firm shall be required to submit “Bid Security Declaration” in place of earnest
money deposit (EMD) as mentioned at sl. no. 3 of Section-I

Section XIV: TIMELINES FOR CONDUCTING INTERNAL AUDIT

The internal audit shall be conducted in accordance with the timelines as specified below:-

2019-20

S.No. Particulars Due Date

A Internal audit for quarter ended
June 2019 (Phase – I)

Submission of final Audit report 31.07.2021

B Internal audit for quarter ended
September 2019 (Phase – II)

Submission of final Audit report 31.10.2021

C Internal audit for quarter ended
December 2019 (Phase – III)

Submission of final Audit report

31.01.2022

Internal audit for quarter ended
D March 2020 ( Phase-IV)

15.04.2022

Submission of final Audit Report

Note:
1. Any delay beyond 15 days in furnishing of internal audit report consequently for two
phases due to non-deployment of manpower or any other reason attributable to the
audit firm within stipulated dates mentioned as above will render audit firm to
disqualify for future assignment and their nomination will not be considered for
subsequent years.

2. Internal Audit for F.Y 2022-23 shall be carried out on quarterly basis for which

timelines shall be decided later at the time of extension of contract.

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Section XV: SECURITY DEPOSIT

i. The selected firm shall be required to submit security deposit of the value of 3% of the

total annual contract value within 21 days from the date of award of contract, valid up

to sixty days after the date of completion of all contractual obligations by the supplier,

including the warranty obligations (if any).

ii. The Performance security shall be denominated in Indian Rupees or in the currency of

the contract and shall be in one of the following forms:

a. Account Payee Demand Draft or Fixed Deposit Receipt drawn on any
Scheduled bank in India, in favour of SPMCIL, New Delhi.

b. Bank Guarantee issued by a Scheduled bank in India, in the prescribed form as
provided in section XV of this document.

iii. The Security deposit shall be released by SPMCIL after 60 days from the date of
satisfactory execution of the work order/contract in all respects.

iv. No interest shall be payable to the firm on the amount of security deposit.
v. Forfeiture of security deposit:

In event of default on the part of firm in satisfactory execution, security deposit shall be
forfeited by SPMCIL. The forfeiture of security deposit shall be without prejudice to any other
rights arising or accruing under relevant provisions of contract like penalty/damages for delay
or risk execution of work including suspension of business dealings for a specific period.

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vi. Bank Guarantee Format for Performance Security

[insert: Bank’s Name, and Address of Issuing Branch or Office]

Beneficiary: [insert: Name and Address of SPMCIL]

Date:

PERFORMANCE GUARANTEE No.:

WHEREAS ………………………………………………………………………………. (Name and address of
the supplier) (hereinafter called “the supplier”) has undertaken, in pursuance of contract
no……………………………. dated …………. to supply (description of goods and services) (herein after
called “the contract”).

AND WHEREAS it has been stipulated by you in the said contract that the supplier shall furnish you with
a bank guarantee by a scheduled bank recognized by you for the sum specified therein as security for
compliance with its obligations in accordance with the contract;

AND WHEREAS we have agreed to give the supplier such a bank guarantee;

NOW THEREFORE we hereby affirm that we are guarantors and responsible to you, on behalf of the
supplier, up to a total of ……………… …… ……… …… …………………. (amount of the guarantee in
words and figures), and we undertake to pay you, upon your first written demand declaring the supplier to
be in default under the contract and without cavil or argument, any sum or sums within the limits of
(amount of guarantee) as aforesaid, without your needing to prove or to show grounds or reasons for your
demand or the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the supplier before presenting us
with the demand. We further agree that no change or addition to or other modification of the terms of the
contract to be performed thereunder or of any of the contract documents which may be made between
you and the supplier shall in any way release us from any liability under this guarantee and we hereby
waive notice of any such change, addition or modification.

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We undertake to pay SPMCIL up to the above amount upon receipt of its first written demand, without
SPMCIL having to substantiate its demand.
This guarantee will remain in force for a period of Sixty days after the currency of this contract and any
demand in respect thereof should reach the Bank not later than the above date.
…………………………….
(Signature of the authorized officer of the Bank)
………………………………………………………….
Name and designation of the officer
………………………………………………………….
Seal, name & address of the Bank and address of the Branch
………………………………………………………….
Name and designation of the officer
………………………………………………………….
………………………………………………………….
Seal, name & address of the Bank and address of the Branch

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