No. HUDCO/LRO/2018/
Dated: 09/05/2018
Sub:- Notice inviting tender for Appointment of Chartered Accountant Firm as Internal
Auditors for undertaking comprehensive Internal Audit for the Year 2018-19
Dear Sir,
Housing & Urban Development Corporation Limited (HUDCO) is a fully owned Government of
India Enterprise under the administrative control of Ministry of Housing & Urban Affairs
(MoHUA).
Lucknow Regional Office, HUDCO would like to appoint Chartered Accountant as per
specifications and criteria described/detailed below. The estimated fee as per the Annexure I
attached. In case, you are interested, please submit your quotation/offer for the services listed
below by 24/05/2018 before 03.00 pm. You may please also note the following general terms
and conditions applicable in regard to submission of quotation/offer for award of
contract/empanelment by HUDCO : -
Scope of Work:-
1. Scope of Work as per Annexure-II
2. Checklist to be prepared by auditor with comments on observations and deviations, if any,
as per Annexure-III (on monthly basis).
3. Auditor's Report should contain following elements ordinarily within the following layout
as per Annexure- IV
The monthly confirmation report for review of accounts as per above scope of work
addressed ED (IA), Internal Audit HUDCO, New Delhi shall be made available to this
office by 7th of next month.
Selection Procedure:-
The appointment of CA firm shall be done by following procedure:-
1. Upon receipt of EMD amount, the Technical Bid shall be opened.
2. Firms shall be first short listed on the basis of Technical Bid.
3. After short listing of firms on the basis of Technical Bid, Financial Bid shall be opened for
the short listed firms.
Terms and conditions:-
1. The services would be provided to Lucknow Regional Office, Housing & Urban Development
Corporation Limited, (HUDCO), B-1, NE Block, 2nd Floor, PICUP Building, Gomti Nagar,
Lucknow-226010 as well as any other location/office falling within the jurisdiction of
HUDCO, Lucknow.
2. Quotation can be sent by post or deposited in tender box available at Reception in HUDCO
Lucknow Regional office.
3. Quotation should be sent in three sealed envelopes separately placed in one sealed
envelope, as per the details given below:-
i) First envelope super scribing on top "BID for Appointment of Chartered Accountant
of HUDCO Regional Office, Lucknow for the year 2018-19 Earnest Money Deposit
(EMD)" and shall contain Earnest Money Deposit (EMD). Bid must accompany EMD of
Rs.2,500/- (Rupees Two Thousand Five Hundred Only) by way of RTGS/ NEFT payable
at Lucknow, in favor of "HUDCO Ltd". No other means (Cheque/ draft) will be accepted.
The Bid without EMD will be considered as unresponsive and will be rejected. The
details for NEFT/ RTGS :-
Party Name HUDCO LTD
Branch Name Union Bank of India
Bank Branch U.P. Rural Housing Board, Lucknow
Account No. 521301010036309
Account Type Current Account
IFSC Code UBIN0552135
MICR Code 226026010
ii) Second envelope super scribing on top "BID for Appointment of Chartered
Accountant of HUDCO Regional Office, Lucknow for the year 2018-19 Technical
Bid" and which must display clearly our reference number, closing date and time to be
mentioned on the envelope with name of your firm, telephone number and full address.
This should detail out the firm's detailed profile including the firm's name, address,
registration number, date of establishment, detailed profile of partners and brief details
of paid CA's associates/support staff, clientele (PSUs, Banks, other companies),
experience in handling work of PSUs. (as detailed in Annexure-V)
iii) Third envelope super scribing on top "BID for Appointment of Chartered Accountant
of HUDCO Regional Office, Lucknow for the year 2018-19 Financial Bid" and
should contain your minimum rates for the job to be covered as per the scope of work
indicated above service. The rates quoted, should be excluding GST. (as detailed in
Annexure-VI)
4. The Eligibility Criteria required for consideration for appointment are as under:-
i) CA Firm having at least three years' experience in undertaking Internal Audit work of
Public Sector Undertakings.
ii) Minimum 3 No. of partners who should be qualified CAs and minimum Five No. of
paid assistants (qualified (CA/CMA)/semi qualified(CA/CMA-Inter))
iii) CA Firm should have local office within the region having minimum five working staff
(including one partner).
iv) CA Firm should have at least two years' experience in handling Tax related matters
including filing of TDS in respect of Public Sector Undertakings.
Detailed profile of partners and brief details of paid CAs and firm's clientele (particularly
PSU clientele) may be provided in support of the above requirements.
5. The CA firm shall be required to depute one person (CA or support staff on a fortnightly
basis to assist the Regional Office in accounting /taxation and other related activities on a
continual basis and as and when required by the Regional Office.
6. The work awarded initially will be for one year (F.Y. 2018-19) which shall be renewable for
further period of two years on yearly basis on satisfactory services.
7. Any modifications in offer letter, after the opening date will not be considered.
8. Bidder, before submitting quotations, should clearly understand HUDCO's requirement and
in case any information/ clarification is required, he/she may visit HUDCO Regional Office
during the working days (Monday to Friday between 9.30 am to 6.00 pm). It may be noted
that no clarification/ information after closure of the last date of receipt of quotation, would
be entertained.
9. CA should submit an undertaking to the effect that (part of Technical Bid),
i) that none of the partners has any relation with any employee of HUDCO and also none of
them has any relationship within the meaning of Section 2(76) of the Companies Act, 2013
and also that none of them has any relationship with the Statutory Auditors (M/s. Prem
Gupta & Co.) and also will ensure compliance under section 184 and 188 of the Companies
Act, 2013.
ii) Certified that we have not been appointed for carrying out certification/consultancy or
such related work of the same Regional Office which will have conflict of interest with the
assignment as above as Internal auditors of the said Regional Office.
10. HUDCO reserves the right to accept or reject any or all quotations without assigning any
reason.
11. The monthly /quarterly payments shall be made @ 80% of the due fees and balance 20%
shall be released after audit of annual accounts by Statutory Auditors and issuance of Tax
Audit Report.
12. The EMD of unsuccessful bidder shall be refunded. EMD of successful bidder will be kept as
security deposit till the end of contract period.
13. HUDCO shall make payment of bill after deduction of all applicable taxes.
14. Quotation, received late, will not be considered. HUDCO will not be responsible for any
postal delay.
15. Quotation will be opened on 24/05/2018 at HUDCO office (at the address given in Point
No.1) at 4.00 pm. The representative of the bidder can also participate in bid opening.
16. All the disputes will be subject to Lucknow Jurisdiction only.
17. Decision of Regional Head, HUDCO, Lucknow shall be final and binding on both the parties
in respect of all matter of dispute arising out of this bid.
Thanking you.
Yours faithfully
For & on behalf of HUDCO
Rahul Ji Srivastava
General Manager
Annexure I
Amount (Rs.)
Description of the work
(Maximum Ceiling Amount)
For audit and verification of Imprest and project loan 10000/- per month
For audit and verification of HUDCO Niwas vouchers
Less than 100 vouchers 5,000/- per quarter
For audit and verification of PDS vouchers
Less than 500 vouchers 3,500/- per quarter
KYC and PML verification as per KYC and PML 300/- per month
guidelines, pertaining to Projects, PDS and HUDCO
Niwas
For audit and verification of sanction of project loans 100/- per case with a ceiling of
10000/- per annum
For audit and verification of releases of project loans 100/- per case with a ceiling of
10000/- per annum
For audit and verification of HUDCO Niwas sanction and 75/- per case with a ceiling of
release 10000/- per annum
For audit and verification of PDS cases 50/- per case with a ceiling of
10000/- per annum
Incidental Matters and other Miscellaneous work Rs.300/- per month
* GST charges will be additional
*100% verification in case the number of vouchers in each category(as given in the description
of work in the eligibility criteria), is less than 100 in a month and sample size of 50% in case the
number is more than 200/250 per month.
ANNEXURE II
SCOPE OF WORK
Projects :
Sanctions
Verifying the receipt of duly filled-in loan applications in prescribed form along with
relevant documents and applicable documentation charges.
Verify that the state and individual agency exposure is within the prescribed limit by
NHB and HUDCO.
Verify whether the sanction of schemes has been accorded in line with the parameters
of financing pattern issued from time to time.
Releases
Verify compliance with all the pre-disbursement sanction conditions and required
running conditions and monitoring the achievement of required level of expenditure
for subsequent releases.
Verify receipt of all the charges as specified in the Loan Agreement.
Monitor the timely receipt of Completion certificate upon project completion
Verify whether default cases are being reviewed and followed up regularly.
DMRC & Pre-Audit
Verify whether DMRC meetings are being held regularly and minutes are forwarded to
RO as per the guidelines.
Preliminary Audit of accounts of the agency(s) before release of security/ initiating
legal action, shall be carried out. Compilation and forwarding of all copies of documents
relevant for pre-audit for final clearance by Internal Audit Wing (Head Office).
Finance, Accounts, Administration, Real Estate and HR
Verifying monthly trial balance accompanied by audit report backed by verification of
books of accounts and verification of all the vouchers
Verification of reconciliation of bank accounts with reference to closing balances as per
ledgers.
Verification of actual expenses vis-à-vis budget
Verification that present Salary of employees has been calculated correctly in
accordance with 3rd Pay Revision Orders.
Verification that award of AMC to the contractors and empanelment/engagement of
service providers have been done as per procedures/guidelines/O.O issued from time
to time and all terms of contract are duly complied.
Verify that Estate Maintenance of office building, residential houses, guest houses etc. is
being done as per procedures. Proper documents have been kept in lockers and
insurance and taxes etc. have been paid timely.
Verify whether Flats have been allotted as per the eligibility. Also, whether HRA for all
the occupied flats is being recovered.
Verify that debiting and crediting of leaves is in line with Leave rules and service
records are updated timely. Also, salary is being regulated after accounting for leaves
availed.
HUDCO Niwas
Verification that loan application and its acceptance is in prescribed format and
documents submitted are as per guidelines
Verification of appraisal to check the credit worthiness, repaying capacity (individual
and rental income), credit appraisal ratios and fixing of repayment period
Verification of title documents and creation of security as per guidelines.
Verification of release of loan after compliance of sanction conditions, site inspection,
individual contribution and requisite financial and physical progress
Monitor that requisite number of post-dated cheques have been received as per
guideline and verification of conversion of PDCs with National Automated Clearing
house(NACH).
Verify that default cases are being reviewed and Default Recovery minutes are sent to
HO from time to time. Whether action under section 138 of Negotiable Instrument Act,
filing of civil and criminal cases including Sarfaesi Act is being taken.
Verify that penal interest, compound interest are calculated as per
practice/procedure/norm and NPA provisioning is being made as per prudential norms
Verify that all insurances have been taken as per guidelines
Verification of books of accounts and vouchers with regard to appropriateness and
correctness of heads of accounts
Verification of bank reconciliation statement and monthly cumulative report for
quarterly, half-yearly, nine-monthly and annual statements generated through
Software package.
Verify whether necessary provisions in HUDCO Niwas loans has been made as per NHB
norms
Verify Compliance of provisions of GST Act / Income Tax Act, 1961
Verification that eligible CLSS subsidy claims/releases to banks by HUDCO (as CNA)
and CLSS subsidy received from NHB by HUDCO (as PLI) is as per guidelines.
Verify the Rectification JV/Differential Entry passed by the RO in the HUDCO Niwas
Accounting System (Software package), if any.
Public Deposit Scheme
Verification that application forms for deposits and its acceptance are in the prescribed
format and documents submitted therein are as per the guidelines.
Verifying that the renewal of deposits received under HUDCO Public Deposit Scheme
are as per guidelines of HUDCO Public Deposit Scheme .i.e. the renewal of deposit with
retrospective effect is permitted provided fresh application in prescribed form is
submitted within a period of one month after the date of maturity of the deposit.
Verify that application forms are duly stamped with respect to applications being
received directly or through broker.
Verify whether maturity interest/pre-mature interest on FDR/Loan against FDR has
been calculated correctly
Verify that the TDS has been deducted correctly as per the applicable sections and rates
under the IT Act,1961 and in case of non-deduction/deduction at lower rates,
supporting documents have been received.
Verifying that reminder letters intimating the details of maturity of the deposit has
been issued to all the depositors at least 14 days before the date of maturity of deposit
Verify that Tax deducted at source against interest on deposits and brokerage paid is
deposited with Income Tax department by 7th of succeeding month.
Verification of filing quarterly TDS Returns and uploading of the same with the Tax
Authorities for every quarter by 15th of the month succeeding the quarter
incorporating the details of total taxable interest viz details of Form 15-H /15-G and
exemption certificates submitted by the depositors.
Verify that the details of Assessment Year, Rate of TDS are correctly filled up in challans
deposited with I.T. department.
Verifying that the notices received from Income Tax Authorities are promptly attended
to.
Verification with respect to filing of correction statement/Rectification of TDS Returns
already filed, if required.
Verify that the PDS Deposit Holder Register is maintained as per the NHB guidelines.
Verifying the PDS accounting heads such as interest on PDS, Interest Approved but Not
Due (IABN), brokerage payable/brokerage paid, unclaimed PDS/unclaimed interest on
PDS, TDS payable, PDS receipt control interest under various schemes, LA PDS/interest
on LA PDS/interest accrued on LA PDS, prior period brokerage, prior period interest
expenses, any other deferred expenses, stale cheques, any other accounting head added
to the PDS accounting during the financial year.
Verifying bank reconciliation on monthly basis.
Verifying outstanding under the PDS with confirmation to opening
balances, deposits during the year, redemption made during the year and closing
balance outstanding Scheme-wise, Period-wise and Maturity-wise.
Verifying that complaints of depositors under HUDCO PDS are maintained in the
prescribed format and report sent to PDS dept. HO on Quarterly basis.
Verifying the Cash Flow Statement on quarterly basis.
Verifying the interest and brokerage provision at the end of every quarter.
Verification with respect to timely transfer of all the unclaimed deposits and interest
amount which are due for transfer to IEPF account in compliance of section 125 of
Companies Act 2013.
Verifying that HUDCO PDS Control accounts i.e. GL 322080 and GL 322081 are made
NIL at the end of every quarter.
Assuring that all other NHB regulatory guidelines are being duly complied.
Income Tax Related
Verify deduction of tax at source from
1. Salary in reference to Savings & Investments, Income from House Properties
submitted by employees
2. Medical Bill payments to non-exempted hospitals
3. All other payments
are in compliance with the provisions and under applicable sections under Income Tax
Act,1961.
Verify timely deposit of TDS amount to the appropriate authorities.
Verification the correctness of the TDS returns before these are filed with the
appropriate authorities and timely filing of the above with Tax Authorities.
Verify from Income Tax site that the tax payment has been properly accounted for with
Income Tax Authorities and the proper credit for TDS on income is available to HUDCO;
To verify the segregation of all the expenses heads in regard to deductibility / non-
deductibility of TDS.
Verification with respect to Filing of correction statement/Rectification of TDS Returns
already filed, if required
Verify that all the provisions of Income Tax Act,1961, amendments therein and related
circulars issued by Head Office from time to time are complied with.
Verification of Form 3CD as per the format of CBDT at the year-end along with all the
annexures required at the time of compilation of Tax Audit Report at Head Office.
Goods & Service Tax (GST) Related
Verify the Statements / Ledgers in regard to GST paid by RO on input services, GST
collected on output services, GST payable under reverse charge, adjustment of GST on
input service as per eligibility and GST payable on output services. Also verify its
booking under appropriate GL A/c.
Verify that the invoices have been raised as per applicable provision within the
prescribed time under GST Act in respect of output services / services covered under
RCM and accounted for in Books of Accounts properly.
Verify that Regional Offices are making monthly payments of GST timely to the
appropriate authorities after taking input tax credit as per applicable provision of GST
Act/ Rules.
Verifying timely filing of monthly GST returns as applicable with the concerned
authorities and verification of reconciliation of GST return with the financial data
available in GSTN.
Verify that appropriate and timely action is taken by Regional office in case of show-
cause notice / order if any received from the service tax / GST authorities.
Verifying compliance of various notifications/circulars / instructions issued by various
authorities/ Head Office in regard to GST from time to time.
IND-AS Related
As of now, IND-AS is applicable on banking and financial institutions w.e.f. 01.04.2018,
therefore, CA Firm is required to verify that all the provisions of Indian Accounting
Standards (IND-AS) applicable to HUDCO along with any instruction issued by HO from
time to time in this regard are timely complied with.
KYC & PML Certification
Verification of compliance of KYC and PML guidelines issued by NHB and HUDCO from
time to time in respect of applications for Project Loans including loans to Government
Agencies received at RO, HUDCO Niwas, PDS and furnishing the certificate as
prescribed by Principal officer / ED (IA), on monthly basis (as per IOM dated
30.01.2018 issued by IA-wing).
Incidental matters
Verify that the receipt of Utilization Certificates under CSR is being regularly monitored
by the RO.
Verify that all the mortgaged properties under Niwas, Project Loans and Advances to
staff have been registered under CERSAI and with appropriate authority.
Preliminary Audit of accounts of the agency(s) before release of security/ initiating
legal action shall be carried out. Compilation and forwarding of all copies of documents
relevant for pre-audit for final clearance by Internal Audit Wing (Head Office).
Annexure III
Checklist with comments on observations and deviations, if any
S.No. Audit as per scope of work Auditor's Comments
Observation/Deviation
with justification
PROJECTS
1. Verify whether Loan application has been received in
prescribed format as per guidelines along with relevant
documents and documentation charges.
2. Whether the proposed scheme is eligible for HUDCO funding
as per HUDCO mandate.
3. Whether the agency is eligible to raise loan from HUDCO as per
its MoA/Constitution.
4. Verify whether the scheme is being processed within the
sanctioning powers of the Competent Authority.
5. Verify whether sanction of schemes has been accorded in line
with the financing pattern issued from time to time.
6. Verify whether the state and individual agency exposure is
within the limit prescribed by NHB and HUDCO.
7. Verify compliance with all the pre-disbursement sanction
conditions and required running conditions and monitoring
the achievement of required level of expenditure for second
and subsequent releases.
8. Verify receipt of all the charges as specified in the Loan
Agreement
9. Verify that loan releases to the borrowing agency Date of
release amount and rate of interest as per applicable
Financing Pattern
10. Verify that Loan Releases in Consortium funded project - date
of release, amount and Rate of interest as per terms of
Common Loan agreement (CLA)/Inter Credit Arrangement
(ICA)/consortium partners for verification of interest charged
by consortium partners/ HUDCO guidelines.
11. Verify that the receipt/ recovery of application fee/ front-end-
fee/ Research and Development (R&D) , as applicable in
reference to the loan agreement and financing pattern and
checking of accounting entries with respect to the relevant
voucher passed
12. Verify the receipt of applicable GST on the receipts indicated at
(11) above.
13. Recovery of deferment charges and prepayment charges,
Commitment charges, conversion charges, as per
guidelines/norms, as and when applicable and applicable GST
thereon.
14. Repayments with respect to amount received, actual date of
receipt/credit of payments received from agency based on the
bank statement.
15. Verify the project property under project loan is registered
with appropriate authority.
16. Verify that valuation report of mortgaged property have been
obtained as and when required and in terms of guidelines from
empanelled valuers and duly accepted by competent authority.
v
17. Verify that project property mortgaged to HUDCO is insured as
per LMC/Guidelines.
18. Accounting of Corporate Debt restructuring and waiver
implemented during the year.
19. Accounting of Restructuring /Deferment/Re-schedulement
and waiver implemented during the year.
20. Implementation of the revised interest rate on account of
revision in financing pattern and automatic reset falling due on
completion of specified period as per financing pattern.
21. Recovery of charges/fees as per terms of CLA/ICA or any other
agreement in case of consortium funded projects and checking
of accounting entries.
22. To review the status of receipt of Balance Confirmation
certificates from the borrowing Agencies at the quarter end,
which are not in litigation and also review the reconciliations
or the reasons for the difference in the Balance Confirmation
certificates carried out by the Department.
23. To check the receipt of Utilization Certificates from Borrowing
Agencies in respect of Grant released by Hudco.
24. To check the calculation of interest & penal levies on sample
basis (specifying the scheme) covering each category and
regional office.
25. To check appropriations of payment received from agency on
sample basis (specifying the scheme) covering each category
and regional office.
26. To check implementation of deferment/amendment in the
loan card/ new loan card/ loan Ledger with respect to OTS/
DRP/ Decree of DRT,DRAT/
CDR/Restructuring/Deferment/reschedulement/Curtailment
of loan based on the amendment letter issued by the Regional
Office and its accounting entries.
27. To check loan recall notice implemented in the loan card based
on the loan recall notice issued by regional office during the
period and its accounting entries.
28. Verify the classification of assets/loan (Housing and Non
Housing) in respect of Project loans sanctioned during
financial year.
29. Monitor the timely receipt of Progress Reports, during the
course of project implementation and Completion certificate
upon project completion
30. Verify whether default cases are being reviewed and followed
up regularly.
31. Verify whether DMRC meetings are held regularly and minutes
are forwarded by RO to Hqrs. as per guidelines.
32. Preliminary Audit of accounts of the agency(s) before release
of security/ initiating legal action, shall be carried out.
Compilation and forwarding of all copies of documents
relevant for pre-audit for final clearance by Internal Audit
Wing (Head Office).
FINANCE
1. Verification of salary vouchers with regard to appropriateness
of heads of accounts
2 Verify whether employees tax calculation has been done as per
applicable provisions of IT Act and all exemptions granted are
under relevant sections of IT Act backed with duly supported
relevant documents for claiming such exemptions
3. Verify that the present pay has been calculated correctly in
accordance with the 3rd pay revision order issued.
4. Verify that TA/DA is being granted as per HUDCO norms and
rules
5. Verification of staff loan advances and all other advances and
whether any advance is overdue and not settled within the
scheduled time
6. Verification that all income heads and expense heads have
been checked with regard to deductible/non-deductible TDS
and timely remittances and there are no arrears/late deposits
reported.
7. Physical verification of assets with the books is reconciled at
the end of the financial year
ACCOUNTS
1. Verification of all bank and journal vouchers.
2. Verification of monthly trial balance accompanied by audit
report
3. Verification of maintenance of bank book, journal books and
other subsidiary records
4. Verification of actual expenses Vs. budget allocation
5. Verification of opening and closure of bank accounts as per
approval of competent authority.
6. Verification of reconciliation of bank accounts with reference
to closing balance of bank accounts appearing in monthly trial
balance
7. Verification of head office control account with reference to
remittances received from HO and disbursement made at
Regional Office
8. Verification of closing balances as per ledger appearing in the
trial balance at the close of the financial year (opening balance
+ cumulative of net of monthly balances)
9. Verify whether requirement of fund has been assessed before
requisitioning from the head office and minimum balances are
maintained as per the direction of the head office
ADMINSITRATION & REAL ESTATE
1. HUDCO's procurement guidelines are being complied for
procurement of items and services
2. All the purchases are made as per the delegation of power and
within specified budgetary limits
3. Award of Annual Maintenance Contracts and
empanelment/engagement of service providers and payments
therein are being regulated as per the HUDCO guidelines and
Purchase Manual and in compliance with the tender document.
The contractor for AMC has been selected in terms of the
eligibility criteria and financial bid embedded in the tender
document. The tender document has been conceived as per
the Government of India regulations, HUDCO guidelines and
other regulatory authorities.
4. All the break-up of payments has been made as per relevant
head in the contract document and verify with the supporting
documents that the contractor has made statutory payments
like PF, ESI etc. within schedule time to the respective
authorities and the net payment released to his staff is also be
verified. Also, other terms of contracts have been complied.
5. Flats have been allotted as per the eligibility and whether HRA
for all occupied flats is being recovered.
6. Maintenance and Insurance of all office assets. Proper
mechanism of insurance coverage of office asset is in place.
Insurance policies are renewed and taxes are paid timely.
7. Disposal of obsolete assets and weeding out of old records as
per the guidelines issued from time to time. There is a system
to identify unused/damaged assets with proper approval and
weeding out of old records as per guidelines.
8. Digitization of records and backup of data to be maintained as
per guidelines.
HUMAN RESOURCE
1. Verify that the loan advances granted to the employees are as
per eligibility and secured by mortgage of
property/hypothecation of vehicles and also the same has
valid insurance.
2. Whether original documents are kept in safe custody.
3. Proper record of credit/debit of leaves in line with leave rules
and proper updated maintenance of service book.
HUDCO NIWAS
1. Verification of duly filled in loan application and acceptance is
in prescribed format and documents submitted are as per
guidelines
2. Verification of appraisal to be done to check credit worthiness
including CIBIL, repaying capacity (individual and rental
income), credit appraisal ratios and fixing of repayment period
3. Verification of title documents and creation & registration of
security as per guidelines.
4. Verification of release of loan after compliance of sanction
conditions, site inspection, individual contribution and
requisite financial and physical progress.
5. Verification that requisite number of post-dated cheques have
been received as per guideline and verification of conversion
of PDCs with NACH
6. Verification that default cases are being reviewed and Default
recovery minutes are sent to HO from time to time. Whether
action under 138 of Negotiable Instrument Act, filing of civil
and criminal cases including Sarfaesi Act is being taken.
7. Verification that penal interest, compound interest calculated
as per practice/procedure/norm and NPA provisioning is
being made as per prudential norms
8. Verification that all insurances have been taken as per
guidelines
9. Verification of books of accounts and vouchers in regard to
appropriateness and correctness of heads of accounts
10. Verification of bank reconciliation and monthly cumulative
report for quarterly, half-yearly, nine-monthly and annual
statement generated through Software package
11. Verify whether necessary provisions in HUDCO Niwas loan has
been made as per NHB norms
12. Verify whether correct entries have been passed for interest
due and interest de-recognition.
13. Verifying Compliance of requirements as per GST Act / Income
Tax Act.
14. Verification that eligible CLSS subsidy claims/releases to
banks by HUDCO (as CAN) and CLSS subsidy received from
NHB by HUDCO (as PLI) is as per guidelines
15. Verify the Rectification JV/Differential Entry passed by the RO
in the Hudco Niwas Accounting System (Software package), if
any
PUBLIC DEPOSIT SCHEME
1. Verification that application forms for deposits and its
acceptance are in prescribed format and documents submitted
are as per guidelines.
2. Verifying that the renewal of deposits received under Hudco
Public Deposit Scheme are as per guidelines of HUDCO Public
Deposit Scheme .i.e. the renewal of deposit with retrospective
effect is permitted provided fresh application in prescribed
form is submitted within a period of one month after the date
of maturity of the deposit.
3. Application form are duly stamped with respect to application
being received direct or through broker
4. Verify whether maturity interest/pre-mature interest on
FDR/Loan against FDR has been calculated correctly.
5. Verify that the TDS has been deducted correctly as per the
applicable sections and rates under the IT Act,1961 and in
case of non-deduction/deduction at lower rates, supporting
documents have been submitted.
6. Verifying that reminder letters intimating the details of
maturity of the deposit has been issued to all the depositors at
least 14 days before the date of maturity of deposit.
7. Tax deducted at source against interest on deposits and
brokerage paid is deposited with Income Tax department by
7th of succeeding month.
8. Verification of filing quarterly TDS Returns and uploading of
the same with the Tax Authorities for every quarter by 15th of
the month succeeding the quarter incorporating the details of
total taxable interest viz details of Form 15-H /15-G and
exemption certificates submitted by the depositors.
9. The details of Assessment Yea, rate of TDS are correctly filled
up in challans deposited with I.T. department.
10. Verifying that notices received from Income Tax Authorities
are attended to promptly.
11. Verification with respect to filing of correction
statement/Rectification of TDS Returns already filed, if
required.
12. Verify that the PDS Deposit Holder Register is maintained as
per the NHB guidelines
13. Verifying the PDS accounting heads such as interest on PDS,
Interest Accrued but Not Due (IABN), brokerage
payable/brokerage paid, unclaimed PDS/unclaimed interest
on PDS, TDS payable, PDS receipt control interest under
various schemes, LA PDS/interest on LA PDS/interest accrued
on LA PDS, prior period brokerage, prior period interest
expenses, any other deferred expenses, stale cheques, any
other accounting head added to the PDS accounting during the
financial year.
14. Verifying bank reconciliation on monthly basis.
15. Verifying outstanding under the PDS with confirmation to
opening balances, deposits during the year, redemption made
during the year and closing balance outstanding Scheme-wise,
Period-wise and Maturity-wise.
16. Verifying that complaints of depositors under HUDCO PDS are
maintained in the prescribed format and report sent to PDS
dept HO on Quarterly basis.
17. Verifying the Cash Flow Statement on quarterly basis.
18. Verifying the interest and brokerage provision at the end of
every quarter.
19. Verification with respect to timely transfer of all the unclaimed
deposits and interest amount which are due for transfer to
IEPF account in compliance of section 125 of Companies Act
2013.
20. Verifying that HUDCO PDS Control accounts i.e. GL 322080 and
GL 322081 are made NIL at the end of every quarter.
21. All the other NHB regulatory guidelines have been duly
complied.
INCOME TAX
1. Verify deduction of tax at source from salary in reference to
Savings & Investments, Income from House Properties
submitted by employees, Medical Bill payments and all other
payments in compliance of the provisions of the Income Tax
Act. Verify timely payment of TDS amount to appropriate
authorities. Verification the correctness of the TDS returns
before these are filed with the appropriate authorities and
timely filing of the same. Verify from Income Tax site that the
tax payment has been properly accounted for with Income Tax
authorities and the proper credit for TDS on income is
available to HUDCO
2. To verify the segregation of all the expenses heads in regard to
deductibility / non-deductibility of TDS.
3. Verification with respect to Filing of correction statement/
Rectification of TDS Returns already filed, if required
4. Verification that all the provisions of Income Tax Act,
amendments therein and related circulars issued by Head
Office are complied with.
5. Verification of Form 3CD as per format of CBDT at the year-
end along with all the annexure required at the time of
compilation of Tax Audit Report at Head Office.
GOODS & SERVICE TAX (GST)
1. Verify the Statement / Ledgers in regard to GST paid by RO on
input services and goods, GST collected on output services,
GST payable under reverse charge, adjustment of GST on input
service as per eligibility and GST payable on output services.
Also Verify its booking under appropriate GL A/c.
2. Verify that the invoices have been raised as per applicable
provision under GST in respect of output services / services
covered under RCM and accounted for in books of Accounts
properly.
3. Verify that Regional Offices are making monthly payments of
GST timely to appropriate authorities after taking input tax
credit as per applicable provision of GST Act/Rules.
4. Verifying timely filing of monthly GST returns as applicable
with the concerned authorities and verification of
reconciliation of GST return with the financial data available in
GSTN.
5. Verify that appropriate and timely action is taken by Regional
office in case of show-cause notice / order if any received from
the service tax / GST authorities.
6. Verifying compliance of various notifications/circulars /
instructions issued by various authorities/ Head Office in
regard to GST from time to time.
IND-AS RELATED
1. As IND-AS is applicable on banking and financial institutions
w.e.f. 01.04.2018, therefore, CA Firm to Verify that all the
applicable provisions of Indian Accounting Standards (IND-
AS) applicable to HUDCO as per instructions issued by Head
Office from time to time are complied with.
KYC & PML Certification in respect of Project Loans
1. Verification of compliance of KYC and PML guidelines issued
by NHB and HUDCO from time to time in respect of
applications for Project Loans including loans to Government
Agencies, PDS and HUDCO Niwas and furnishing the certificate
as prescribed by Principal officer/ ED (IA), on monthly basis
(as per IOM dated 30.01.2018 issued by IA-wing).
Incidental Matters
1. Verify that the receipt of Utilization Certificate under CSR is
being regularly monitored by RO.
2. Verify that all mortgaged properties under Niwas, Project
loans and advances to staff have been registered under CERSAI
3. Verify that all activities relating to sanctioning of projects,
administration, HR etc. carried out in line with Delegation of
Powers.
Annexure- IV
The Auditor's report should contain the following elements ordinarily within the following
layout:
Part-I
a) Title
b) Addressee
c) Firm registration number alongwith supporting documents
d) Coverage (Period)*
e) Duration of audit
f) Composition of Audit Team**
g) Opening or introductory paragraph (including the work handle by the auditee unit)
h) Organizational structure of Auditee unit
i) Scope of audit
j) Checklist given in Annexure II to be mandatory filled-up
k) Records reviewed and sample size in case of test check (100% verification in case the
number of vouchers in each category(as given in the description of work in the eligibility
criteria), is less than 100 in a month and sample size of 50% in case the number is more
than 200/250 per month).
l) Non production of records, if any
m) Executive Summary of the audit observations
* The coverage period shall include the coverage of balance period of the previous financial
year (2017-18) not covered by Internal Audit and payment shall be paid on proportionate
basis and the Report shall be submitted alongwith the first quarter Audit Report.
** The Audit team will consist minimum of one Chartered Accountant and one paid assistant
{qualified (CA/CMA)/semi qualified(CA/CMA- inter)}.
Part-II
a) Performance review of area(s)/business of the Auditee unit
b) Significant audit observation requires immediate action/attention
c) Audit observations (Audit Paras)
d) Recommendations
e) Annexure/exhibits to the Report
Part-III
a) Review of outstanding paras from earlier reports and its compliance status as on date
b) Concluding paragraph
Part-IV
a) The Audit report shall be submitted latest by 7th of the ensuing month of the completed
quarter and the scanned copy of the report shall be submitted to the Internal Audit Wing.
The hard copy alongwith relevant annexures shall be submitted thereafter.
b) The audit report will be submitted after discussion of the all the audit observations with the
respective Regional Chief and a certificate to this effect is to be enclosed.
c) The internal audit is to be conducted with the highest standard of professional ethical
competence and integrity.
d) CA firm shall not disclose to any person the confidential information relating to the
assignment or HUDCO's business or operations without prior permission of ED(IA), Internal
Audit Department , Head Office, New Delhi.
e) The pre-audit cases pertaining to private sector/consortium and one time agency will be
sent to Internal Audit Head Office, for further due diligence.
f) In case of any dispute between HUDCO and the CA Firm regarding Internal Audit
assignment given to the CA Firm at Regional Office, the decision of the CMD, HUDCO
shall be final and binding on all the parties.
ANNEXURE-V
Offer for engagement of Chartered Accountant in HUDCO Regional Office, Lucknow
Technical Bid
1. a) Name and address of the Firm & its :
Main proprietors/partners
b) Address of office at Lucknow.
2. Year of establishment :
3. Registration No. :
(enclose copy of Registration)
4. Names of Partners :
5. GST registration no. :
6. PAN No. :
7. Performance certificate :
(enclose copies)
8. List of clients : Nature Period
(Attach Separate Sheet)
9. a) No. of Partners :
b) No. of Paid Assistants
(semi qualified/ qualified)
c) No. of other supporting /employed
Staff
10. Experience in handling at least three : Year Name of PSU
years' experience in undertaking
Internal Audit work of Public Sector
Undertakings.
11. CA Firm should have at least two years' Year Name of PSU
experience in handling Tax Related
matters including filing of TDS in
respect of Public Sector Undertakings.
12. An undertaking as specified in point 9
of Terms and Conditions of Tender
mentioned above.
No. of enclosures :
Date : Signature :
Name of Authorized Person :
Name of CA Firm :
Seal
ANNEXURE-VI
Offer for engagement of Chartered Accountant in HUDCO Regional Office, Lucknow
Financial Bid
1. Name of the Firm & its Main :
proprietors/partners
2. Address along with telephone Nos. :
3. Audit Fees (excluding GST) : TOTAL FEES
Rs. in figures -
Rs. in words
Date :
Signature :
Name of Authorized person :
Name of CA Firm :
Seal
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