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Employees State Insurance Corporation, New Delhi
June, 20th 2018
        REQUEST FOR PROPOSAL (RFP)
                            for
   Appointment as External Concurrent Auditor (ECA)
For the audit of Employees' State Insurance Corporation's
                   (ESIC) Investments


                               Date of issue:
                               30 May, 2018



                    Deadline for submission of Proposal:
                         20 June, 2018 by 10:00 a.m.




            To be submitted online and addressed to:


                           Financial Commissioner,
                Employees' State Insurance Corporation (ESIC),
                            Panchdeep Bhawan,
                     Comrade Inderjeet Gupta (CIG) Marg,
                             New Delhi - 110002
                                                              Table of Contents
       1.    Disclaimer ............................................................................................................................................ 4

       2.    Introduction ......................................................................................................................................... 6

       3.    Terms of Reference ............................................................................................................................. 7

       4.    Duties & Responsibilities of the External Concurrent Auditor (ECA) ........................................... 8

       5.    Proposed contract terms .................................................................................................................. 11

       6.    Electronic RFP Process .................................................................................................................... 12

       7.    Bid Evaluation Criteria ...................................................................................................................... 15

       8.    Format of Pre-Qualification, Technical and Financial bid ............................................................. 20

       9.    Formats for Covering Letter and Clarifications, Deviations, Undertaking and Affidavit ........... 29

       10. Investment Pattern of ESIC .............................................................................................................. 36




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                                                                   Page 2 of 37
                                                      Glossary
Applicant: Partnership Firms registered with the ICAI which are interested to participate in the RFP process for appointment
of External Concurrent Auditor for audit of ESIC's Investments

AUM: Assets Under Management

ECA: External Concurrent Auditor

ICAI: Institute of Chartered Accountants of India

MoLE: Ministry of Labour and Employment

N.A.: Not Applicable

RFP: Request for Proposal

Fund: Employees' State Insurance Fund as defined in The Employees' State Insurance Act, 1948

ESIC/ Corporation: Employees' State Insurance Corporation as defined in The Employees' State Insurance Act, 1948




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 3 of 37
                                                     1. Disclaimer
1.1.   This document is being published in connection with the proposed appointment of External Concurrent Auditor by the
       ESIC for the audit of ESIC's investments.

1.2.   This document does not constitute nor should it be interpreted as an offer or invitation for the appointment of External
       Concurrent Auditor described herein.

1.3.   This document is meant to provide information only and upon the express understanding that recipients will use it
       only for the purpose of furnishing a proposal for being appointed as an External Concurrent Auditor for the audit of
       ESIC's investments. It does not purport to be all inclusive or contain all the information regarding the appointment of
       External Concurrent Auditor or be the basis of any contract. No representation or warranty, expressed or implied, will
       be made as to the reliability, accuracy or the completeness of any of the information contained herein.

1.4.   While this document has been prepared in good faith, neither the ESIC, nor any of its officers make any representation
       or warranty or shall have any responsibility or liability whatsoever in respect of any statements or omissions here
       from. Any liability is accordingly and expressly disclaimed by the ESIC and any of its officers, even if any loss or
       damage is caused by any act or omission on the part of the ESIC or any of its officers, or employee or consultant,
       whether negligent or otherwise.

1.5.   By acceptance of this document, the recipient agrees that any information herewith will be superseded by any
       subsequent written information on the same subject made available to the recipient by or on behalf of the ESIC. The
       ESIC or any of its respective officers undertake no obligation, among others, to provide the recipient with access to
       any additional information or to update this document or to correct any inaccuracies therein which may become
       apparent.

1.6.   ESIC reserves the right, at any time and without advance notice, to change the procedure for the selection of External
       Concurrent Auditor or any part of the interest or terminate negotiations or the due diligence process prior to the signing
       of any binding agreement.

1.7.   The ESIC reserves the right to reject any or all proposals or cancel/withdraw the Request for Proposal (RFP) without
       assigning any reason whatsoever and in such case no intending Applicant shall have any claim arising out of such
       action. At any time prior to the deadline for submission of proposals, the ESIC may modify, for any reason deemed
       necessary, the RFP by amendment notified on ESIC's website (www.esic.ni.in) and such amendment shall be binding
       on intending Applicants.

1.8.   The recipients of the RFP should carry out an independent assessment and analysis of the requirements for
       appointment as External Concurrent Auditor and of the information, facts and observations contained herein.

1.9.   This document has not been filed, registered or approved in any jurisdiction. Recipients of this document should
       inform themselves of any applicable legal requirements and conform to the same.

1.10. This document constitutes no form of commitment on the part of the ESIC. Furthermore, this document confers neither
       the right nor an expectation on any party to participate in the proposed External Concurrent Auditor's appointment
       process.


Request for Proposal for Appointment of ECA for audit of ESIC's investments                                        Page 4 of 37
1.11. This document confers neither a right nor an expectation on any party to offer for appointment as External Concurrent
      Auditor.

1.12. The ESIC reserves the right to, not consider for the purpose of qualification, a proposal which is found to be incomplete
      in content and/or attachments and/or authentication etc. or which is received after the specified date and time, or not
      delivered as per the specified procedure.

1.13. When any proposal is submitted pursuant to this RFP, it shall be presumed by the ESIC that the Applicant has fully
      ascertained and ensured about its eligibility to act as External Concurrent Auditor, in the event of it being selected
      ultimately to act as External Concurrent Auditor, under the respective governing laws and regulatory regimen, and
      that there is no statutory or regulatory prohibition or impediment on acting as External Concurrent Auditor for the audit
      of ESIC's investments and it has the necessary approvals and permission to act as External Concurrent Auditor and
      further suffers no disability in law or otherwise to act as such.

1.14. Without prejudice to any other rights or remedies available to the ESIC, External Concurrent Auditor may be
      disqualified and their proposals rejected for any reason whatsoever including those listed below:

      1.14.1. Material misrepresentation by the Applicant in the Proposal.

      1.14.2. Failure by the Applicant to provide the information required to be provided in the proposal pursuant to relevant
                 sections of this document.

      1.14.3. If information becomes known, after the Applicant has been appointed, which would have entitled the ESIC
                 to reject or disqualify the relevant External Concurrent Auditor, the ESIC reserves the right to reject the
                 Applicant at the time, or at any time after, such information becomes known to the ESIC and no compensation,
                 whatsoever, shall be payable to the External Concurrent Auditor so rejected.

      1.14.4. Any conviction by a Court of Law or indictment/adverse order by a regulatory authority that casts a doubt on
                 the ability of the Applicant to conduct audit.

1.15. All proposals and accompanying documents submitted online in response to this RFP will be considered as final
      submission by Applicant.

1.16. Reference to any laws/regulations/guidelines in this RFP document is applicable to laws/regulations/guidelines in
      India.

1.17. Decision of the evaluation committee on evaluation of bids submitted by Applicants would be final and binding on all
      Applicants.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 5 of 37
                                                 2. Introduction
2.1   The Employees' State Insurance Corporation (ESIC), India is a statutory body under the aegis of the Ministry of
      Labour and Employment (MoLE), Government of India. Its main objective is to provide for certain benefits to
      employees in case of sickness, maternity and employment injury and to make provision for certain other matters in
      relation thereto.

2.2   The organisational structure of the ESIC is as follows:




                                                       Employee's State
                                                          Insurance
                                                         Corporation




                                                           Chairman
                                                      (Union Minister for
                                                           Labour &
                                                        Employment)



                                                        Vice Chairman
                                                      (Secretary, Ministry
                                                          of Labour &
                                                         Employment)


       Members            Representa                                                                      Director
       (Max. five                       Employers'                           Representa   Representa    General of
                            tives of                      Employees'
       members                          representat                            tives of     tive of         the
                              state                       representat
       appointed                            ive                               medical     members of   Corporation
                          governmen                           ive
       by Central                                                            profession   Parliament    , ex-officio
                                ts
         Govt.)



The organisation functions under the overall superintendence of the corporation, headed by the Union Minister for Labour
and Employment as Chairman.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                 Page 6 of 37
                                          3. Terms of Reference
3.1   Rule 27 of The Employees' State Insurance (Central) Rule, 1950 deals with investment of ESIC Surplus Fund. The
      pattern of investment as per new investment policy, approved by Ministry of Labour & Employment, Govt. of India is
      as under:


       1.         Government Securities and related instruments (Govt. bonds)                               Upto 50%

       2.         Debt instruments & related instruments (AAA rated PSU Bonds & Fixed Deposit of            Upto 45%
                  Scheduled commercial banks for more than a year, as prescribed in the M/o Finance
                  Notification

       3.         Short-term Debt instruments and related instruments (including bank fixed deposits        Upto 5%
                  upto 1 year and money market instruments



3.2   This document is a Request for Proposal (RFP) for the appointment of External Concurrent Auditor for the audit of
      ESIC's investments. The Applicants that may wish to participate in the selection process must submit their proposals
      as per the process defined in this RFP.

3.3   ESIC is in the process of selecting portfolio managers for managing ESIC's fund and has floated an RFP for the
      same. Portfolio managers are required to make all investments as per the investment pattern (as given in section 10
      of this RFP) and as amended by ESIC from time to time and the agreement between the portfolio manager and the
      ESIC. The appointment of portfolio managers will be for a tenure of three years, extendable by mutual agreement.

3.4   ESIC is in the process of selecting Custodian of Securities for ESIC's fund and has floated an RFP for the same. The
      selected Custodian of Securities will provide custodial services for the securities allowed in ESIC's investment pattern
      (as given in section 10 of this RFP) and as amended by ESIC from time to time.

3.5   ESIC intends to appoint an External Concurrent Auditor for audit of ESIC's investments. The External Concurrent
      Auditor is required to examine, verify and report whether the portfolio managers have followed the investment pattern,
      investment guidelines and the terms of agreement entered into between ESIC and the portfolio managers and such
      other audit of investments as may be required by ESIC from time to time.

3.6   The total investment of ESIC as on 31 March, 2018 stands to Rs. 73,303.00 Crores, out of which investment in
      Special Deposit Account is Rs. 13,445.89 Crores and in fixed deposit with Public Sector Banks is Rs. 59,857.11
      Crores. Investment is done in accordance with provision of section 29(2) of the ESI Act, 1948, read with Rule 27 of
      ESI (Central Rules), 1950.

3.7   For further information about the ESIC, one may visit the website www.esic.nic.in.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                     Page 7 of 37
 4. Duties & Responsibilities of the External Concurrent Auditor (ECA)
4.1   The ECA, while conducting audit of the ESIC's investments, must:

      4.1.1   Ensure that the audit is to be conducted by a team consisting of one leader and at least two staff personnel
              (who are qualified chartered accountants with at least one year of work experience). The leader of the team
              should be a qualified chartered accountant with at least five years of experience in the field of Audit and at
              least three years of experience in the field of concurrent audit of portfolio managers (considering investment
              portfolios managed by mutual funds, life insurance companies, pension funds, retirement/provident funds,
              superannuation funds). The audit should be carried out under direct supervision of a Partner of the Applicant
              if the leader of the Team is not a Partner of the Applicant. There is no requirement for having separate teams
              for each portfolio manager of ESIC.

      4.1.2   Ensure that they are not engaged with the same portfolio manager(s) of ESIC being audited for any purpose
              other than the terms of reference contained in this RFP. This restriction would be only for the period during
              which the Applicant is appointed as ECA for audit of investments done by ESIC's portfolio managers. No
              additional mandate can be taken up by ECA with any of the portfolio managers appointed to manage ESIC's
              fund.

      4.1.3   Ensure, to the best possible extent, that the team leader appointed to conduct the audit should continue in
              his role till the completion of the assignment. For any reason, if there is a change in the team leader appointed
              to conduct the audit, the same should be intimated to ESIC immediately.

4.2   Scope of work

      4.2.1   Create formats/templates for the MIS to enable monitoring of the investments by portfolio manager(s)

      4.2.2   Reconcile the Fund flow and Bank Accounts of ESIC with the portfolio manager(s) on a monthly basis.

      4.2.3   Check the MIS from custodian of securities of ESIC and report exceptions, if any, on an immediate basis.

      4.2.4   Check the receipt of data and MIS from portfolio managers and report any exceptions to ESIC.

      4.2.5   Check the daily transactions with the market data and report deviations.

      4.2.6   Check the Credit ratings of the Investments on a daily basis and report any downgrades or negative
              watch/outlook immediately.

      4.2.7   To examine and verify whether the portfolio managers have followed the investment pattern, investment
              guidelines and the terms of agreement entered into between ESIC and the portfolio managers.

      4.2.8   To scrutinize the investment transactions made by the portfolio managers on day-to-day basis to ensure that
              the same are as per the investment pattern as well as the investment guidelines issued by the ESIC. Also
              to point out wherever deviations have been made.

      4.2.9   To highlight any potential conflict of interest issues such as investment of ESIC's funds by portfolio managers
              in TDRs of the banks under same management group.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 8 of 37
      4.2.10 To verify whether the interest and maturity proceeds are collected promptly and re-invested as per the
              provisions made in the investment pattern and investment guidelines issued by the ESIC. Also to point out
              delays, if any, and the causes for such delay.

      4.2.11 To verify whether the benefits or rights accruing to the ESIC , wherever receivable from the institutions, are
              collected promptly and invested as per the prescribed investment pattern and investment guidelines of ESIC.

      4.2.12 To bring out cases of undue delay in the receipt of benefits or rights accruing to the ESIC.

      4.2.13 To verify, from the daily transaction details, whether the charges are levied correctly by the portfolio manager
              as per the terms and conditions and to report any excess charges levied by portfolio manager on
              account of splitting up of investment deals.

      4.2.14 To verify whether the funds were invested promptly by portfolio managers. If the funds remained un-invested
              for a significant period, then to assess opportunity cost/benefit due to delayed investments for un-invested
              period.

      4.2.15 To verify whether proper records have been maintained in respect of all transactions and contracts and to
              ascertain whether the records are updated correctly and on timely basis.

      4.2.16 To verify whether all shares, securities, debentures and other investments have been held in the name of
              ESIC.

      4.2.17 To verify whether there is a reasonable system of authorization at proper levels and there are adequate
              system of internal controls commensurate with quantum and value of investment transactions.

      4.2.18 To verify whether adequate records are kept in support of each investment decision.

      4.2.19 To ascertain and report whether the Investments have always been made at the optimal market rate. The
              ECA will look into the price on the date of investment and check the proportion of investment closer to lowest,
              medium and highest rates.

      4.2.20 To comment on internal control mechanism, whether the systems are adequate to avoid any internal frauds.
              If not, suggest a suitable mechanism after discussing the matter with the portfolio manager concerned.

      4.2.21 To examine whether the portfolio manager has taken steps to address issues highlighted during the
              performance review of portfolio managers or otherwise.

      4.2.22 To bring out any other point which comes to notice of ECA during the course of audit.

      4.2.23 To examine the cases of tax deducted at source and the receipt of refund for the same or the receipt of TDS
              certificates in Form 16-A for those cases. The details may be worked out for the cases in respect of which
              no refunds or TDS Certificates are received.

      4.2.24 The auditors have to ensure that all the guidelines/circulars issued by the Government/ ESIC from time to
              time are followed and the various points mentioned in the scope of audit mentioned above are looked into.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                    Page 9 of 37
      4.2.25 The Audit Report shall also identify shortcomings in the existing set up, which are to be taken care of by
              issuing suitable guidelines.

      4.2.26 The concurrent audit needs to be carried out and Report submitted to the ESIC on a monthly basis along
              with desirable certificates. The audit report for a given month and compliance for previous observations need
              to be submitted to ESIC by 15th day of the subsequent month.

      4.2.27 In Audit Reports, audit observations regarding separate accounts of funds as may be maintained by ESIC,
              should be categorized separately.

      4.2.28 The ECA should carry out the physical verification of holdings with the custodian as well as other holdings
              with ESIC as at the end of financial year and submit verification certificate to ESIC.

      4.2.29 Other than those mentioned above, the ECA may be required to perform any other audit related activity as
              required by ESIC from time to time. However, no additional fee would be chargeable to ESIC.

      4.2.30 The concurrent audit would be executed at the ECA's office itself. All the data required for audit of ESIC's
              investments would be electronically shared with the ECA on a daily basis. However, the ECA will be required
              to review internal systems and processes at the offices of portfolio managers. ECA will also be required to
              visit ESIC's offices/ custodian for verification of physical securities, data or any other related information.

      4.2.31 If appointed as ECA for the audit of ESIC's investments, ESIC may verify the records of audit through an
              external agency, for which the ECA is required to provide necessary support.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 10 of 37
                                    5.      Proposed contract terms
5.1   The concurrent audit needs to be carried out and its report be submitted to the ESIC on the monthly basis. The
      remuneration for carrying out the above assignments shall be paid on quarterly basis. The financial bid shall be
      inclusive of all expenses including out of pocket expenses such as local conveyance, out of station travelling, boarding
      and lodging etc.
5.2   Payment of audit fee will be made on quarterly basis subjected to receipt of all monthly audit reports for the quarter.
5.3   THE APPLICANT MAY QUOTE THEIR FINANCIAL BID IN LUMP SUM PER MONTH IRRESPECTIVE OF THE
      NUMBER OF FUND MANAGERS ENGAGED BY ESIC.
5.4   Taxes applicable on the services rendered by ECA will be borne by ESIC.
5.5   The tenure of ECA will be for three (3) years from date of appointment. This may be extended by mutual consent of
      the ESIC and the ECA, depending on the performance of the latter. ESIC may remove the ECA in case its services
      are not found satisfactory.
5.6   Conditions of termination

        The appointment of the ECA will be terminated after giving 30 days' notice if:-

        5.6.1   The ECA contravenes the conditions/ clauses as specified in the agreement with the ESIC;

        5.6.2   The ECA is unable to perform the duties and responsibilities as specified in the agreement;

        5.6.3   If in the ESIC's opinion, the services rendered by the ECA is unsatisfactory;

        5.6.4   Without assigning any reasons due to unforeseen situation or on administrative ground; and

        The appointment of ECA would be terminated at the end of the tenure as specified in the Letter of Appointment.

5.7   Arbitration

      In case of dispute arising upon or in relation to or in connection with the contract between ESIC and selected External
      Concurrent Auditor, which has not been settled amicably, such disputes shall be referred to a sole arbitrator,
      appointed by the Director General, ESIC under Arbitration and Conciliation Act, 1996. Arbitration proceedings shall
      be held in Delhi / New Delhi, India and the language of Arbitration proceedings and that of all documents and
      communications between the parties shall be in English. The cost of arbitration shall be borne equally by the parties.
      For judicial adjudication of the disputes, if any, arising out of the Contract will be subject to the jurisdiction of the
      Courts in Delhi / New Delhi only.









Request for Proposal for Appointment of ECA for audit of ESIC's investments                                     Page 11 of 37
                                          6. Electronic RFP Process
6.1   Steps in electronic RFP process:

      6.1.1   Applicants wishing to participate in the electronic RFP process may get themselves registered at
              https://esictenders.eproc.in   for   submission    of    proposal   in   the   electronic   form   as   per   the
              terms defined in this document.

      6.1.2   Applicants are required to procure Class-IIIB Digital Signature Certificate (DSC) with both DSC components,
              i.e. signing & encryption to participate in E-tenders.

      6.1.3   Applicants should add the below mentioned sites under Internet Explorer -> Tools ->Internet Options ->
              Security -> Trusted Sites -> Sites of Internet Explorer:

              https://esictenders.eproc.in

              https://www.tpsl-india.in

              https://www4.ipg-online.com

              Also, Applicants need to select "Use TLS 1.1 and Use TLS 1.2" under Internet Explorer -> Tools -> Internet
              Options -> Advanced Tab -> Security.

              Applicants needs to submit Bid Processing Fee charges of Rs. 2495/- (non-refundable) in favour of M/s. C1
              India Pvt. Ltd., payable at New Delhi via Online Payment Modes such as Debit Card, Credit Card or Net
              Banking for participating in the Tender.

              Applicants can contact our Helpdesk at https://esictenders.eproc.in/html/Support.asp

      6.1.4   The Applicants should fill up the online detail, complete in all respect, and submit the required documents as
              per the terms of this RFP on or before 20 June, 2018, by 10:00 a.m.

      6.1.5   The Applicants shall deposit Earnest Money Deposit [EMD] of Rs 50,000 [Rupees Fifty Thousand only]
              through NEFT/ ECS/ RTGS/ CBS in Syndicate Bank, Indraprastha Estate Branch, New Delhi-110002, A/c
              No.- 90172010131946, IFSC Code - SYNB0009017, MICR 110025021. Account Name - Employees' State
              Insurance Corporation, payable on or before 20 June, 2018, by 10:00 a.m.

              6.1.5.1   After making the payment, Applicant must send an E-mail at hemantkr.pandey@esic.in and jd-
                        f1@esic.nic.in mentioning about the payment details such as UTR No., Company Name, User ID,
                        Payment towards ESIC EMD, Tender ID and Tender Title. Failure to send remittance detail to the
                        email ids on or before 20 June, 2018, by 10:00 a.m. may lead to non-consideration of tender.

              6.1.5.2   ESIC will refund the EMD to all the unsuccessful Applicants upon signing of Agreement with the
                        successful External Concurrent Auditor. No interest shall be payable on the EMD amount.

              6.1.5.3   ESIC reserves the right to forfeit the EMD if the Applicant fails or refuses to accept the offer from
                        ESIC for being appointed as the External Concurrent Auditor and/ or fails to sign the Agreement




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 12 of 37
                           within the stipulated period and/ or refuses to accept any of the terms of the Agreement. ESIC may
                           also decide to debar the said Applicant from future assignments.

      6.1.6   Applicants are required to do online submission of pre-qualification, technical and financial bids (as detailed
              in section 8 of this document) at e-tendering portal https://esictenders.eproc.in.

      6.1.7   The authorised representative of the Applicants may be present at the time of opening of the pre-qualification,
              technical and financial bids.

      6.1.8   There must be a summary of list of documents against each proposal (pre-qualification, technical and financial
              bids).

      6.1.9   Each supporting document required in the proposal should clearly indicate the serial number of the relevant
              section of the RFP against which the submission has been made.

      6.1.10 The currency of the proposal and payments shall be in Indian rupees only.

      6.1.11 The proposals must be submitted online only as detailed in this RFP. Proposals hand delivered or sent
              through registered post or courier or e-mail or any other means shall not be accepted. Proposals received in
              such manner will be treated as invalid and rejected.

      6.1.12 THE APPLICANT MUST ENSURE THAT THE SOFTCOPIES OF ALL BID DOCUMENTS COMPLETE IN
              ALL ASPECTS AS DETAILED IN THIS RFP ARE SUBMITTED ONLINE.

6.2   Completeness of bid documents

      6.2.1   The ESIC along with the consultant appointed by it, will open and evaluate the contents of the documents
              received to ascertain that all documents/ information requirements are provided in the format and the manner
              specified.

      6.2.2   The ESIC may, where desired necessary, seek further clarifications from any/ all Applicants in respect of any
              information provided in the RFP.

      6.2.3   The Applicant must furnish clarifications within the stipulated time frame failing which the bids submitted by
              the Applicant concerned will be treated as incomplete.

6.3   Evaluation of technical and financial bids

      6.3.1   All Applicants, who qualify on the pre-qualifications bid criteria as laid down in section 7.1 of this RFP would
              only be further evaluated on technical bids.

      6.3.2   The technical bids of eligible Applicants will be evaluated as per the criteria specified in section 7.2 of this
              RFP.

      6.3.3   Applicants, who score at least 75% (3.75 out of a max score of 5) in the technical bid, would only be short-
              listed for the evaluation of the financial bid.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                    Page 13 of 37
      6.3.4        Of the Applicants qualifying in technical bid, the Applicant with lowest financial bid (L1) will be offered
                   appointment as External Concurrent Auditor. ESIC reserves the right to negotiate terms with the L1 bidder, if
                   required.

      6.3.5        The proposals shall be valid for a period of six (6) months from the date of application.

6.4   Finalisation of External Concurrent Auditor

      6.4.1        External Concurrent Auditor will be finalised based on the evaluation process as prescribed above and the
                   successful External Concurrent Auditor will be informed.

      6.4.2        ESIC reserves the right to cancel the appointment process and call for a re-bid without assigning any reason
                   thereof.

6.5   Key activities and dates

      The expected schedule of key activities for the purpose of this RFP is outlined below:

         Sr.No.        Key Activities                                                         Due Date*
              1.       Issuance of RFP                                                        30 May, 2018
              2.       Last date for submission of queries on RFP via e-mail (queries to be
                                                                                              06 June, 2018 by 11:59 p.m.
                       sent to on the e-mail ID : jd-f1@esic.nic.in)
              3.       Response to above queries to be uploaded on the ESIC website           12 June, 2018
              4.       Last date for submitting Proposal                                      20 June, 2018 by 10:00 a.m.
              5.       Pre-qualification bid opening                                          20 June, 2018 by 11:00 a.m.
              6.       Technical bid opening for the eligible Applicants                      20 June, 2018 by 5:00 p.m.
              7.       Financial bid opening for the eligible Applicants                      Date will be notified to technically
                                                                                              qualified Applicants
              8.       Issuance of letters to selected External Concurrent Auditor            After the approval from ESIC
              9.       Signing of Agreement                                                   To be intimated to the selected External
                                                                                              Concurrent Auditor
           10.         Selected External Concurrent Auditor to be ready in all respects       To be intimated to the selected External
                                                                                              Concurrent Auditor

       * The ESIC reserves the right to change any date/time mentioned in the schedule above




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                              Page 14 of 37
                                                 7. Bid Evaluation Criteria
7.1       The Pre-Qualification criteria for selection of ECA for the ESIC's investments is as follows:

                                                                                                                                Supporting
 S. No       Criteria
                                                                                                                                 Document
      1      The Applicant should be a Partnership Firm registered with the ICAI. The Applicant must be registered
                                                                                                                               Section 8.2.1
             with the ICAI for at least 10 years as on last date of application.
      2      The Applicant should have valid Income tax Permanent Account Number (PAN) and GST number as on
                                                                                                                               Section 8.2.2
             last date of application.
      3      There must be at least FIVE (5) Chartered Accountants (CA) working as fulltime Partners of which at               Section 8.2.3 &
             least TWO (2) should be Fellow Chartered Accountant (FCA), as on the date of RFP.                                 Section 8.2.4
      4      The Applicant must have experience in each of the last FIVE (5) Financial Years ending 31 March, 2018
             in concurrent audit of at least one account of portfolio manager*.
             Further, the average of financial year-wise turnover# (considering the sum of turnover across all accounts
             of portfolio managers* whose concurrent audit was carried out by the Applicant in each of the five (5)            Section 8.2.5
             financial year ending 31 March 2018, 31 March 2017, 31 March 2016, 31 March 2015 and 31 March
             2014) must be at least Rs. 1000 Crores.
             Please refer to illustration 8.5.1 for the calculation
      5      The Applicant / any partner should not have been convicted by a court of law or indictment / adverse
                                                                                                                               Section 8.2.6
             order passed against the Applicant / any partner till the date of application.
      6      The Applicant should have functional office in Mumbai and New Delhi having responsible officials.                 Section 8.2.7
      7      The Applicant must be empanelled with Comptroller and Auditor General of India (CAG) as on the date
                                                                                                                               Section 8.2.8
             of RFP.
      8      The Applicant / any partner should not have been barred or suspended by any regulator or ICAI or
             government authority or court of law in India from carrying out audit related activities in the last five years   Section 8.2.9
             as on the date of RFP.
      9      The Applicant / any partner are not in violation of any applicable law or judgment by any court of law or
             violation of any direction/order/regulation by a government/regulatory authority in India, and have not           Section 8.2.10
             been black listed.
  10         There are no legal or arbitration proceedings or any proceedings by or before any government or regulatory
             authority or agency, now pending or threatened against the Applicant / any partner which, if adversely
             determined, could reasonably be expected to have a material adverse effect on its ability to perform the
             obligations under this assignment.
             In case any investigation is pending against the Applicant / any partner, full details of such investigation
                                                                                                                               Section 8.2.11
             including the name of the investigating agency, the charge/ offence for which the investigation has been
             launched, name and designation of persons against whom the investigation has been launched and other
             relevant information should be disclosed, to the satisfaction of the ESIC.
             The ESIC reserves the right to reject or disqualify the relevant Applicant based on the information
             provided above.
  11         The Applicant shall forthwith inform the ESIC of any material change in the information or particulars
                                                                                                                               Section 8.2.12
             previously furnished, which have a bearing on the appointment if granted.
  12         The Applicant shall undertake to comply with all the extant ESIC guidelines/ directions.                          Section 8.2.13
*Includes investment portfolios managed by mutual funds, life insurance companies, pension funds, retirement/provident funds,
superannuation funds




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                                     Page 15 of 37
#
    Annual turnover as on a given date must be calculated as the sum of buy and sell transaction amounts during last one year. The annual
turnover must be calculated on the following dates; 31 March, 2018; 31 March, 2017; 31 March, 2016; 31 March, 2015 and 31 March,
2014.

7.2        Technical evaluation parameters

The following tables outline the broad parameters based on which evaluation of technical proposals of the Applicants shall
be carried out by the ESIC:

           7.2.1      Quantitative criteria

                                                                                                                   Supporting
    S. No     Measure                         Measurement Criteria                                                                 Weight
                                                                                                                   Document
                                              Aggregate AAUM across all accounts of portfolio managers*
              Aggregate of Average            (whose concurrent audit was carried out by the Applicant) - sum
       1      Assets Under Management         of aggregate AAUM as of 31 March, 2018; 31 March, 2017; 31           Section 8.3.1    10%
              (AAUM) ­ Rs. Crores             March, 2016; 31 March, 2015 and 31 March, 2014.
                                              Please refer to illustration 8.5.2 for the calculation
                                              Experience of the Applicant in terms number of financial years
                                              during the period 01, April 2008 to 31 March, 2018 in concurrent
                                              audit of accounts of portfolio managers*.
                                              Further, experience in a financial year can only be considered if
              Relevant experience of the
       2                                      the total turnover # (considering sum of turnover across all         Section 8.3.2    15%
              Applicant ­ Years
                                              accounts of portfolio managers* whose concurrent audit was
                                              carried out by the Applicant in the respective financial year) was
                                              at least Rs. 500 Crores.
                                              Please refer to illustration 8.5.3 for the calculation
                                              Number of accounts of portfolio managers* (whose concurrent
                                              audit was carried out by the Applicant) - average number of
       3      Number of clients ­ Number      clients as of 31 March, 2018; 31 March, 2017; 31 March, 2016;        Section 8.3.3    15%
                                              31 March, 2015 and 31 March, 2014.
                                              Please refer to illustration 8.5.4 for the calculation
                                              Experience (in years) of the assigned partner for the said
              Relevant experience of the
       4                                      assignment in concurrent audit of portfolio managers* as on the      Section 8.3.4    15%
              partner assigned ­ Years
                                              date of RFP.
              Number of members in the
                                              Number of members who are chartered accountants in the
       5      proposed execution team ­                                                                            Section 8.3.4    10%
                                              proposed execution team for the said assignment.
              Number
              Relevant experience of          Aggregate experience (in years) of the proposed execution team
       6      proposed execution team ­       for the said assignment in concurrent audit of portfolio             Section 8.3.4    10%
              Years                           managers* as on the date of RFP.
              Number of Fulltime
       7      Partners who are FCA ­          Number of Fulltime Partners who are FCA as the date of RFP.          Section 8.3.5     5%
              Number
              Number of staff members ­       Number of staff members (excluding fulltime Partners), who are
       8                                                                                                           Section 8.3.6     5%
              Number                          chartered accountants as the date of RFP.
              Total                                                                                                                 85%



Request for Proposal for Appointment of ECA for audit of ESIC's investments                                                   Page 16 of 37
*Includes investment portfolios managed by mutual funds, life insurance companies, pension funds, retirement/provident funds,
superannuation funds. If an account of the client is managed in more than one financial years then it should be treated as a separate
account for counting the number of accounts in each of the financial years in which it was managed.
#Annual turnover as on a given date must be calculated as the sum of buy and sell transaction amounts during last one year. The annual
turnover must be calculated on the following dates; 31 March, 2018; 31 March, 2017; 31 March, 2016; 31 March, 2015; 31 March, 2014
and so on.

        7.2.2    Qualitative criteria

                                                                                                                  Supporting
  S. No      Measure                     Measurement criteria                                                                      Weight
                                                                                                                   documents
                                         Tools and Technology: Proposed plan to use tools and
                                         technology to carry out the scope of work mentioned in this RFP.
             Proposed project plan for   Data Security : Proposed plan to ensure the confidentiality and
    1        execution of the            security of data from any other business activity of the Applicant      Section 8.3.7      15%
             assignment                  Proposed MIS formats : Proposed MIS format based on the
                                         scope of work mentioned in this RFP, Applicant has to submit
                                         model MIS formats
             Total                                                                                                                  15%


        7.2.3    Scoring process for quantitative and qualitative parameters

          Score (higher the better) - >                    1                 2                 3                   4                 5
          Aggregate of Average Assets
          Under Management (AAUM) ­                                     > 50,000 to      > 1,00,000 to        > 2,50,000 to
                                                     < = 50,000                                                                  > 5,00,000
          Rs. Crores (S. No 1 of Section                                 1,00,000          2,50,000             5,00,000
          7.2.1)
          Relevant experience of the
          Applicant ­ Years (S. No 2 of                  1, 2               3, 4              5, 6                7, 8              9, 10
          Section 7.2.1)
          Number of clients ­ Number (S.
                                                        <=2               > 2 to 3          > 3 to 4            > 4 to 5            >5
          No 3 of Section 7.2.1)

          Relevant experience of the
          partner assigned ­ Years (S. No               <=4               > 4 to 6          > 6 to 8            > 8 to 10           > 10
          4 of Section 7.2.1)

          Number of members in the
          proposed execution team ­
                                                          NA                NA                 3                   4               >=5
          Number (S. No 5 of Section
          7.2.1)

          Relevant experience of
          proposed execution team ­                       NA                NA            > = 7 to 10          > 10 to 13          > = 13
          Years (S. No 6 of Section 7.2.1)




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                                   Page 17 of 37
       Score (higher the better) - >                     1                     2                    3                   4                    5

       Number of Fulltime Partners
       who are FCA ­ Number (S. No 7                     NA                    NA                   2                  3, 4                >=5
       of Section 7.2.1)

       Number of staff members ­
       Number (S. No 8 of Section                      <=5                 > 5 to 10          > 10 to 15            > 15 to 20             > 20
       7.2.1)
       Proposed project plan for
                                                 Scores on a scale of 1 to 5 would be assigned on the basis of write-up
       execution of the assignment ­
                                                 submitted on Tools and Technology to be used, Data Security and Model MIS
       Qualitative (S. No 1 of Section
                                                 formats
       7.2.2)


Illustration

Table 1 (Evaluation of parameters)

                                                                           Number
                                                                                                                                       Proposed
               Aggregate                                                       of          Relevant      Number
                                                         Relevant                                                                       project
               of Average    Relevant                                      members         experienc        of         Number
                                           Numbe         experienc                                                                      plan for
                 Assets      experienc                                      in the            e of       Fulltime      of staff
                                             r of         e of the                                                                     execution
                  Under       e of the                                     propose         proposed      Partner       member
                                           clients        partner                                                                        of the
               Manageme      Applicant                                         d           execution      s who           s
                                                         assigned                                                                     assignmen
               nt (AAUM)                                                   executio          team        are FCA
                                                                                                                                            t
                                                                            n team
 Parametric
                  10%          15%            15%             15%            10%              10%          5%               5%            15%
 Weights
 Applicant 1     150000           6              2             6               4               8            3               10         Qualitative
                                                                                                                                       evaluation
 Applicant 2     200000           9              7             9               4              12            4               20         ­ scoring
                                                                                                                                        would be
 Applicant 3     180000           7              4             6               5               9            2               15
                                                                                                                                       based on
 Applicant 4     100000           1              1             9               3               7            5               25           details
                                                                                                                                       shared by
 Applicant 5     290000           5              6            12               6              10            8               15         Applicants



Table 2 (Scoring of parameters)

                                                                    Number                     Numbe
                            Releva                                                 Relevant                             Proposed
               Aggregate                                               of                        r of
                               nt                    Relevant                      experien                              project
               of Average                                           member                     Fulltim     Number
                            experie    Numb          experien                        ce of                               plan for        Technic
                 Assets                                             s in the                      e        of staff
                             nce of     er of        ce of the                     propose                              execution         al bid
                  Under                                             propose                    Partner     membe
                              the      clients        partner                          d                                  of the          score
               Manageme                                                 d                      s who          rs
                            Applica                  assigned                      executio                             assignme
               nt (AAUM)                                            executi                      are
                               nt                                                   n team                                  nt
                                                                    on team                     FCA
 Parametric
                  10%        15%         15%           15%           10%             10%            5%       5%               15%          100%
 Weights
 Applicant 1       3          3           1             2              4              3             4           2                3         2.65
 Applicant 2       3          5           5             4              4              4             4           4                2         3.90^




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                                          Page 18 of 37
 Applicant 3        3           4          3         2           5           3         3          3          4           3.35
 Applicant 4        2           1          1         4           3           3         5          5          3.5         2.73
 Applicant 5        4           3          5         5           5           3         5          3          3.5         4.08


^Working for Applicant 2 = (10%*3 + 15%*5 + 15%*5 + 15%*4 + 10%*4 + 10%*4 + 5%*4 + 5%*4 + 15%*2) = 3.90

7.3   Overall evaluation scoring

                                 Qualified for
                                 financial bid
               Technical bid       (Yes/ No)
                                                 Financial Bid        Rank
                  score          considering
                                technical cut-
                                   off of 3.75

 Applicant 1        2.65             No                  NA            NA
 Applicant 2        3.90             Yes            200000             L1
 Applicant 3        3.35             No                  NA            NA
 Applicant 4        2.73             No                  NA            NA
 Applicant 5        4.08             Yes            300000             L2


Note - Applicants, who score at least 75% (3.75) in the Technical bid would only be short-listed for the evaluation of Financial
bid.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                        Page 19 of 37
           8. Format of Pre-Qualification, Technical and Financial bid
8.1   Documents comprising the proposal
      8.1.1   The proposal submitted by the Applicant shall comprise the following documents:

      8.1.2   Pre-qualification bid with all the information, as laid down in Section 8.2, duly filled in along with all
              attachments/schedules duly completed and with a covering letter, as per the format defined in Section 9.1,
              signed by the authorized representative of the Applicant.

      8.1.3   Technical bid with all the technical information, as laid down in Section 8.3, duly filled in along with all
              attachments/schedules duly completed and with a covering letter, as per the format defined in Section 9.2,
              signed by the authorized representative of the Applicant.

      8.1.4   The Applicant's Financial bid, as per the format defined in Section 8.4, along with a covering letter, as per the
              format defined in Section 9.3, signed by the authorized representative of the Applicant.

      8.1.5   Any deviations from the requirements of the RFP must be included as a separate statement, as per the format
              defined in Section 9.5.

      8.1.6   Any other information that is to be submitted during the course of the proposal process.

8.2   Pre-qualification bid format
      Name of the Applicant (full name of the Partnership Firm):

      Address with telephone No., Fax No., E-Mail ID, etc.

      8.2.1   The Applicant should be a Partnership Firm registered with the ICAI. The Applicant must be registered with
              the ICAI for at least 10 years as on last date of application. ­ Enclose copy of Registration and Undertaking
              from the Managing Partner or equivalent official of the applicant certifying the same. Refer section 9.6 for the
              format of Undertaking.

                                                                                                                     Annexure
                  Sr.                                                        Supporting document       Remarks if      No. of
                           Particulars
                  No                                                                 submitted            any        supporting
                                                                                                                     document
                           Date and Registration No. of the Applicant with
                      1
                           ICAI
                           Number of completed years as on last date of
                      2
                           application

      8.2.2   The Applicant should have valid Income tax Permanent Account Number (PAN) and GST number as on last
              date of application. ­ Enclose copy of PAN card and GST certificate.

                 Sr. No.     Supporting Documents submitted         Remarks in any    Annexure No. of supporting document
                 1.          Copy of PAN card
                 2           Copy of GST certificate




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 20 of 37
      8.2.3   There must be at least FIVE (5) Chartered Accountants (CA) working as fulltime Partners of which at least
              TWO (2) should be Fellow Chartered Accountant (FCA), as on the date of RFP. ­ Undertaking from the
              Managing Partner or equivalent official of the Applicant certifying the same. Refer section 9.6 for the format
              of Undertaking.

                Sr.       Name      of   the   Membership      Qualification      Remarks in    Annexure No. of supporting
                No.       employee             No.             (CA / FCA etc)     any           document




      8.2.4   Number of Partners and detail profile of each partner with membership no. as on date of application to be
              stated.

                Sr. No.   Supporting Documents submitted        Remarks in any     Annexure No. of supporting document



              Format for profile of partners:

                Name of the Partner
                Membership no.
                Age
                Qualification
                Details of experience in concurrent audit of    Details of each work done along with
                portfolio managers                              the time period
                Experience in concurrent audit of portfolio
                managers (No. of years up to two decimals
                as on the date of RFP)
                Current Responsibilities
                Total experience (No. of years up to two
                decimals as on the date of RFP)
                Tenure spent with the Partnership Firm (No.
                of years up to two decimals as on the date
                of RFP)
                No. of client served for concurrent audit of
                portfolio manager
                Any other point


      8.2.5   The Applicant must have experience in each of the last FIVE (5) Financial Years ending 31 March, 2018 in
              concurrent audit of at least one account of portfolio manager. Further, the average of financial year-wise
              turnover (considering the sum of turnover across all accounts of portfolio managers whose concurrent audit
              was carried out by the Applicant in each of the five (5) financial year ending 31 March 2018, 31 March 2017,
              31 March 2016, 31 March 2015 and 31 March 2014) must be at least Rs. 1000 Crores. Please refer to
              illustration 8.5.1 for the calculation. ­ Undertaking from the Managing Partner or equivalent official of the
              Applicant certifying the same. Refer section 9.6 for the format of Undertaking.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 21 of 37
                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document



      8.2.6   The Applicant / any partner should not have been convicted by a court of law or indictment / adverse order
              passed against the Applicant / any partner till the date of application. ­ An affidavit to this extent shall be
              furnished duly signed by the Managing Partner or equivalent official of the Applicant. The affidavit should be
              notarized by a Notary Public. Refer section 9.7 for the format of Affidavit.

                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document




      8.2.7   The Applicant should have functional office in Mumbai and New Delhi having responsible officials. ­
              Undertaking from the Managing Partner or equivalent official of the Applicant certifying the same. Refer
              section 9.6 for the format of Undertaking.

                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document




      8.2.8   The Applicant must be empanelled with Comptroller and Auditor General of India (CAG) as on the date of
              RFP. ­ Undertaking from the Managing Partner or equivalent official of the Applicant certifying the same.
              Refer section 9.6 for the format of Undertaking.

                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document




      8.2.9   The Applicant / any partner should not have been barred or suspended by any regulator or ICAI or
              government authority or court of law in India from carrying out audit related activities in the last five years as
              on the date of RFP. ­ An affidavit to this extent shall be furnished duly signed by the Managing Partner or
              equivalent official of the Applicant. The affidavit should be notarized by a Notary Public. Refer section 9.7 for
              the format of Affidavit.

                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document




      8.2.10 The Applicant / any partner are not in violation of any applicable law or judgment by any court of law or
              violation of any direction/order/regulation by a government/regulatory authority in India, and have not been
              black listed. ­ An affidavit to this extent shall be furnished duly signed by the Managing Partner or equivalent
              official of the Applicant. The affidavit should be notarized by a Notary Public. Refer section 9.7 for the format
              of Affidavit.

                Sr. No.       Supporting Documents submitted   Remarks in any     Annexure No. of supporting document




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 22 of 37
      8.2.11 There are no legal or arbitration proceedings or any proceedings by or before any government or regulatory
              authority or agency, now pending or threatened against the Applicant / any partner which, if adversely
              determined, could reasonably be expected to have a material adverse effect on its ability to perform the
              obligations under this assignment.

              In case any investigation is pending against the Applicant / any partner, full details of such investigation
              including the name of the investigating agency, the charge/ offence for which the investigation has been
              launched, name and designation of persons against whom the investigation has been launched and other
              relevant information should be disclosed, to the satisfaction of the ESIC.

              The ESIC reserves the right to reject or disqualify the relevant Applicant based on the information provided
              above.

              ­ An affidavit to this extent shall be furnished duly signed by the Managing Partner or equivalent official of
              the Applicant. The affidavit should be notarized by a Notary Public. Refer section 9.7 for the format of Affidavit.

                Sr. No.   Supporting Documents submitted        Remarks in any     Annexure No. of supporting document




      8.2.12 The Applicant shall forthwith inform the ESIC of any material change in the information or particulars
              previously furnished, which have a bearing on the appointment if granted. ­ Undertaking from the Managing
              Partner or equivalent official of the Audit Applicant certifying the same. Refer section 9.6 for the format of
              Undertaking.

                Sr. No.   Supporting Documents submitted        Remarks in any     Annexure No. of supporting document




      8.2.13 The Applicant shall undertake to comply with all the extant ESIC guidelines/ directions. ­ Undertaking from
              the Managing Partner or equivalent official of the Applicant certifying the same. Refer section 9.6 for the
              format of Undertaking.

                Sr. No.   Supporting Documents submitted        Remarks in any     Annexure No. of supporting document




8.3   Technical Proposal Format
      The following quantitative and qualitative information is required to be submitted by the Applicants:

      8.3.1   Aggregate AAUM across all accounts of portfolio managers (whose concurrent audit was carried out by the
              Applicant) - sum of aggregate AAUM as of 31 March, 2018; 31 March, 2017; 31 March, 2016; 31 March, 2015
              and 31 March, 2014. Please refer to illustration 8.5.2 for the calculation. ­ Undertaking from the Managing
              Partner or equivalent official of the Applicant certifying the same. Refer section 9.6 for the format of
              Undertaking.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                       Page 23 of 37
                Sum of Aggregate AAUM (in Rs Crores)          Annexure No. of supporting document




                Sr. No.                           AAUM (in Rs Crores)       Name of clients considered
                             As on Date
                                                                                      for AAUM
                   1        31 March, 2014
                   2       31 March, 2015
                   3       31 March, 2016
                   4       31 March, 2017
                   5       31 March, 2018
                                  Total


      8.3.2   Experience of the Applicant in terms of financial years during the period 01, April 2008 to 31 March, 2018 in
              concurrent audit of accounts of portfolio managers. Further, experience in a financial year can only be
              considered if the total turnover (considering sum of turnover across all accounts of portfolio managers whose
              concurrent audit was carried out by the Applicant in the respective financial year) was at least Rs. 500 Crores.
              Please refer to illustration 8.5.3 for the calculation ­ Undertaking from the Managing Partner or equivalent
              official of the Applicant certifying the same. Refer section 9.6 for the format of Undertaking.

                Experience (in years)      Annexure No of supporting document




                                                               Total turnover during the financial
                Sr. No.   Name of client     Financial year
                                                                              year




      8.3.3   Number of accounts of portfolio managers (whose concurrent audit was carried out by the Applicant) -
              average number of clients as of 31 March, 2018; 31 March, 2017; 31 March, 2016; 31 March, 2015 and 31
              March, 2014. Please refer to illustration 8.5.4 for the calculation. ­ Undertaking from the Managing Partner
              or equivalent official of the Applicant certifying the same. Refer section 9.6 for the format of Undertaking.

                 Sum of number of clients        Annexure No of supporting document




                Sr. No.   Name of client     Financial year




      8.3.4   Profile of the proposed execution team

                Detail required                                Detail required in appropriate        Supporting document
                                                               units




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                       Page 24 of 37
                Experience of the assigned partner for the     Required experience to be quoted      Undertaking        from        the
                said assignment in concurrent audit of         in years up to two decimals as on     Managing         Partner        or
                portfolio managers                             the date of RFP                       equivalent    official    of   the
                                                                                                     Applicant certifying the same.
                                                                                                     Refer section 9.6 for the format
                                                                                                     of Undertaking
                Number of members who are chartered            No. of chartered accountants in the   Undertaking        from        the
                accountants in the proposed execution team     proposed execution team to be         Managing         Partner        or
                for the said assignment                        quoted                                equivalent    official    of   the
                                                                                                     Applicant certifying the same.
                                                                                                     Refer section 9.6 for the format
                                                                                                     of Undertaking
                Aggregate experience of the proposed           Required experience to be quoted      Undertaking        from        the
                execution team for the said assignment in      in years up to two decimals as on     Managing         Partner        or
                concurrent audit of portfolio managers         the date of RFP                       equivalent    official    of   the
                                                                                                     Applicant certifying the same.
                                                                                                     Refer section 9.6 for the format
                                                                                                     of Undertaking


              Further, the CVs of the assigned partner(s) and proposed execution team members to be provided in the
              following format:

              Format for profile of proposed execution team:

                Name of the Partner/ team leader/ team
                members
                Proposed Position and Role                       Partner / team leader/ team members
                Age
                Qualification
                Details of experience in concurrent audit of     Details of each work done along with
                portfolio managers                               the time period
                Experience in concurrent audit of portfolio
                managers (No. of years up to two decimals
                as on the date of RFP)
                Current Responsibilities
                Total experience (No. of years up to two
                decimals as on the date of RFP)
                Tenure spent with the Applicant (No. of
                years up to two decimals as on the date of
                RFP)
                No. of client served for concurrent audit of
                portfolio manager
                Any other point


      8.3.5   Number of Fulltime Partners who are FCA as on the date of RFP. ­ Undertaking from the Managing Partner
              or equivalent official of the Applicant certifying the same. Refer section 9.6 for the format of Undertaking.


Request for Proposal for Appointment of ECA for audit of ESIC's investments                                            Page 25 of 37
                Number of full time Partners      Annexure No of supporting document




                Sr. No.    Name of the employee      Membership        Qualification      Remarks     Annexure    No.    of
                                                     Number            (CA / FCA etc)     in any      supporting document




      8.3.6   Number of staff members (excluding fulltime Partners), who are chartered accountants as on the date of RFP.
              ­ Undertaking from the Managing Partner or equivalent official of the Applicant certifying the same. Refer
              section 9.6 for the format of Undertaking.

                Number of staff members           Annexure No of supporting document
                (excluding fulltime Partners)









      8.3.7   Tools and Technology: Proposed plan to use tools and technology to carry out the scope of work mentioned
              in this RFP.

              Data Security: Proposed plan to ensure the confidentiality and security of data from any other business activity
              of the Applicant

              Proposed MIS formats: Proposed MIS format based on the scope of work mentioned in this RFP, Applicant
              has to submit model MIS formats

                Write-up / Details on                                                   Annexure No. having   Remarks if any
                                                                                        details
                Use of Tools and Technology (write up of not more than 1500 words)
                Data Security (write up of not more than 1500 words)
                MIS Formats (sample MIS formats and write up of not more than 1500
                words)

      8.3.8   Organization chart ­ with names and responsibility(ies)

      8.3.9   Write up on any other information that the Applicant thinks would be worth mentioning in the proposal (not
              more than 1500 words).

8.4   Financial bid Format
      8.4.1   The Financial bid shall be submitted in the following format

                 Charges                            In figures (Rs.)    In words
                 Concurrent Audit Fee per month




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 26 of 37
8.5   Illustrations for calculations
      8.5.1    Illustration with various scenarios for satisfying required experience and turnover in Pre-Qualification criteria

                                                     Scenario A - Sum       Scenario B - Sum        Scenario C - Sum
                                                     of turnover across     of turnover across      of turnover across
                                                       all accounts of        all accounts of         all accounts of
                        Financial year              Portfolio Managers     Portfolio Managers      Portfolio Managers
                                                     during respective      during respective       during respective
                                                    financial years (Rs.   financial years (Rs.    financial years (Rs.
                                                            Crores)                Crores)                 Crores)

                 FY 2014                                   0.00                    1.00                     200.00
                 FY 2015                                   0.00                    1.00                     100.00
                 FY 2016                                   0.00                    1.00                     150.00
                 FY 2017                                   0.00                    1.00                     500.00
                 FY 2018                                  6000.00                6000.00                    1000.00
                 Average turnover                         1200.00                1200.80                    390.00
                 Eligibility on experience in
                                                            No                     Yes                       Yes
                 each of the financial years
                 Eligibility on turnover                    Yes                    Yes                        No



      8.5.2    Illustration for calculation of Aggregate AAUM

               Step 1: Calculation of aggregate AAUM for a year ended date (assuming that the Applicant is doing audit of
               portfolio manager 1 and portfolio manager 2)

                                           AAUM (Rs Crores) for the year ended 31 March, 2018
                                                     Portfolio manager 1 - Daily           Portfolio manager 2 - Daily
                            Days
                                                          AUM (Rs Crores)                      AUM (Rs Crores)
                          1- Apr -17                             100000                             150000
                          2- Apr -17                             102000                             250000
                          3- Apr -17                             103000                             150000
                               -                                    -                                   -
                               -                                    -                                   -
                               -                                    -                                   -
                         30-Mar-18                               104000                             120000
                         31-Mar-18                               108000                             100000
                           AAUM                    =AVERAGE of all the above (A)      =AVERAGE of all the above (B)
                Aggregate AAUM as of 31
                                                                                   = A+B
                        March, 2018


               A similar calculation to be done for the dates - 31 March, 2017; 31 March, 2016; 31 March, 2015 and 31
               March, 2014

               Step 2: Sum the Aggregate AAUM as shown below




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                               Page 27 of 37
                                             Sum of Aggregate AAUM (Rs Crores)
                                      Year ended date                   Aggregate AAUM
                                       31 March, 2018                        100000
                                       31 March, 2017                        102000
                                       31 March, 2016                        123000
                                       31 March, 2015                        120000
                                       31 March, 2014                        110000
                                 Sum of Aggregate AAUM            =SUM of all the above (555000)


      8.5.3   Illustration for calculation of relevant experience of the Applicant

                                                            Sum of turnover
                                                               across all
                                                                                      Financial year
                                                              accounts of
                                                                                       counted for
                                  Financial year          Portfolio Managers
                                                                                       experience
                                                           during respective
                                                                                         (Yes/No)
                                                          financial years (Rs.
                                                                Crores)
                           FY 2009                                   500                   Yes
                           FY 2010                                   400                   No
                           FY 2011                                   900                   Yes
                           FY 2012                                   1200                  Yes
                           FY 2013                                   1100                  Yes
                           FY 2014                                   1000                  Yes
                           FY 2015                                   200                   No
                           FY 2016                                   800                   Yes
                           FY 2017                                   400                   No
                           FY 2018                                   600                   Yes
                           Experience in terms of
                                                                                 7
                           financial years



      8.5.4   Illustration for calculation of number of clients

                                Year ended date          Number of accounts of portfolio managers
                                 31 March, 2018                                 10
                                 31 March, 2017                                 12
                                 31 March, 2016                                 10
                                 31 March, 2015                                 12
                                 31 March, 2014                                  9
                           Average number of clients          =AVERAGE of all the above (10.6)

Note: In the above table, if an account of the client is managed in more than one financial years then it should be treated
as a separate account for counting the number of accounts in each of the financial years in which it was managed.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 28 of 37
       9.       Formats for Covering Letter and Clarifications, Deviations,
                             Undertaking and Affidavit

9.1    Format for Pre-qualification Covering letter

       (To be submitted on the official letterhead of the Applicant submitting the proposal)

Ref : ________________________
Date and Place : __________________


Financial Commissioner,
Employees' State Insurance Corporation (ESIC),
Panchdeep Bhawan,
C.I.G. Marg,
New Delhi ­ 110002

Dear Madam,

Ref: Request for Proposal (RFP): Appointment of External Concurrent Auditor (ECA) for audit of ESIC's
investments

We refer to the communication inviting Request for Proposal (RFP) for Appointment as External Concurrent Auditor for audit
of ESIC's investments. We have read and understood the contents of the document and wish to participate in the
appointment process. We are pleased to submit our Pre-qualification bid along with all the necessary documents, as
mentioned in the RFP, for appointment as External Concurrent Auditor for audit of ESIC's Investments. We confirm that we
satisfy the Pre-qualification criteria set out in the relevant sections of the RFP.


We agree to unconditional acceptance of all the terms and conditions set out in the RFP documents.
We confirm that the information contained in this proposal or any part thereof, including its exhibits, schedules, and other
documents delivered to the ESIC is true, accurate, and complete. This proposal includes all information necessary to ensure
that the statements therein do not, in whole or in part, mislead the ESIC as to any material fact.

We have agreed that (insert individual authorised representative's name) will act as our representative on our behalf and
has been duly authorized to submit the proposal.

Further, the authorized signatory is vested with requisite powers to furnish such letter and authenticate the same.

Yours faithfully,

For and on behalf of ______________________(Insert company name)

Authorised Signatory
(Name of Authorised Signatory along with signature along with company seal)




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 29 of 37
9.2    Technical Proposal Covering Letter

      (To be submitted on the official letterhead of the Applicant submitting the proposal)

Ref:____________________
Date and Place: __________________


Financial Commissioner,
Employees' State Insurance Corporation (ESIC),
Panchdeep Bhawan,
C.I.G. Marg,
New Delhi ­ 110002

Dear Madam,

Ref: Request for Proposal (RFP): Appointment of External Concurrent Auditor (ECA) for audit of ESIC's
investments


We refer to the Request for Proposal (RFP) for Appointment of External Concurrent Auditor for audit of ESIC's investments.

We have read and understood the contents of the RFP document and pursuant to this, we hereby confirm that we are legally
empowered to act as ECA and satisfy the requirements laid out in the RFP document.

Having examined the RFP document, the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
provide the services as required and outlined in the RFP for Appointment of External Concurrent Auditor (ECA) for audit of
ESIC's investments.

To meet such requirements and provide such services as set out in the RFP documents, we attach hereto our response to
the RFP document, which constitutes our proposal for being considered for selection as ECA.

We undertake, if our proposal is accepted, to adhere to the stipulations put forward in the RFP or such adjusted plan as
may subsequently be mutually agreed between us and the ESIC or its appointed representatives.

We agree to unconditional acceptance of all the terms and conditions set out in the RFP documents.

We confirm that the information contained in this proposal or any part thereof, including its exhibits, schedules, and other
documents delivered to the ESIC is true, accurate, and complete. This proposal includes all information necessary to ensure
that the statements therein do not, in whole or in part, mislead the ESIC as to any material fact.

We have agreed that (insert individual authorised representative's name) will act as our representative on our behalf and
has been duly authorized to submit the proposal.

Further, the authorized signatory is vested with requisite powers to furnish such letter and authenticate the same.

Yours faithfully,



Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 30 of 37
For and on behalf of ______________________(Insert company name)


Authorised Signatory
(Name of Authorised Signatory along with signature along with company seal)




Request for Proposal for Appointment of ECA for audit of ESIC's investments   Page 31 of 37
9.3    Financial Proposal Covering Letter

      (To be submitted on the official letterhead of the Applicant submitting the proposal)
Ref:____________________
Date and Place: __________________


Financial Commissioner,
Employees' State Insurance Corporation (ESIC),
Panchdeep Bhawan,
C.I.G. Marg,
New Delhi ­ 110002

Dear Madam,

Ref: Request for Proposal (RFP): Appointment of External Concurrent Auditor (ECA) for audit of ESIC's
investments


Having examined the RFP document, the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
provide the services as required and outlined in the Request for Proposal (RFP) for Appointment of ECA for audit of ESIC's
investments.

To meet such requirements and to provide services as set out in the RFP document we attach hereto our response as
required by the RFP document, which constitutes our proposal.

We undertake, if our proposal is accepted, to adhere to the stipulations put forward in the RFP or such adjusted plan as
may subsequently be mutually agreed between us and the ESIC or its appointed representatives.

We unconditionally accept all the terms and conditions set out in the RFP document.

We confirm that the information contained in this proposal or any part thereof, including its schedules, and other documents
delivered to the ESIC is true, accurate, and complete. This proposal includes all information necessary to ensure that the
statements therein do not, in whole or in part, mislead the ESIC as to any material fact.

We have agreed that (insert individual authorised representative's name) will act as our representative on our behalf and
has been duly authorized to submit the proposal.

Further, the authorized signatory is vested with the requisite powers to furnish such letter and authenticate the same.

Yours faithfully,
For and on behalf of ______________________(Insert company name)

Authorised Signatory
(Name of Authorised Signatory along with signature along with company seal)




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                   Page 32 of 37
9.4      Request for clarifications

  Applicant's Request For Clarification
                                                  Name & position of person   Address of organization including phone,
  Name of Organization submitting request
                                                  submitting request          fax, email, points of contact
                                                                              Tel:
                                                                              Fax:
                                                                              E-mail:
               Reference (Clause No. /Page        Content of RFP requiring
      Sr.No.                                                                  Points of Clarification required
               No.)                               clarification
        1
        2
        3


9.5      Format for providing explanations for deviations if any

  Applicant's explanation for deviations
  Name of Organization submitting               Name & position of person       Address of organization including phone,
  explanation                                   submitting explanation          fax, email, points of contact
                                                                                Tel:
                                                                                Fax:
                                                                                E-mail:
      Sr.No.    Reference                       Deviation in proposal           Reason
                (Clause No. & Page No.)
        1
        2
        3




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 33 of 37
9.6     Format for undertaking


                                                              UNDERTAKING
                                                    (To be given on company letter head)

I, ___________________________<>, am the Managing Partner / equivalent official of
_______________________<> ("External Concurrent Auditor") having its registered office at
_____________________________________________________<>.

I am authorized to sign and execute this undertaking on behalf of the External Concurrent Auditor for submitting a proposal
pursuant to the request for proposal issued by the Employees' State Insurance Corporation (ESIC) for appointment of
External Concurrent Auditor for audit of ESIC's investments.
I, on behalf of the External Concurrent Auditor, solemnly affirm and declare that as on the date of application:
      a. The External Concurrent Auditor is a Partnership Firm registered with the ICAI. The External Concurrent Auditor is
         registered with the ICAI for  years as on last date of application.
      b. The External Concurrent Auditor has  Chartered Accountants (CA) working as fulltime Partners AND
          Fellow Chartered Accountants (FCA) working as fulltime Partners.
      c. The External Concurrent Auditor has experience in each of the last FIVE (5) Financial Years ending 31 March, 2018
         in concurrent audit of at least one account of portfolio manager. Further, the average of financial year-wise turnover
         (considering the sum of turnover across all accounts of portfolio managers whose concurrent audit was carried out
         by the External Concurrent Auditor in each of the five (5) financial year ending 31 March 2018, 31 March 2017, 31
         March 2016, 31 March 2015 and 31 March 2014) was at least Rs. 1000 Crores.
      d. The External Concurrent Auditor has functional office in Mumbai and New Delhi having responsible officials.
      e. The External Concurrent Auditor is empanelled with Comptroller and Auditor General of India (CAG) as on the date
         of RFP.
      f. The aggregate of average asset under management is  across all accounts of portfolio managers
         where concurrent audit was carried out as on March 31, 2018, 31 March, 2017; 31 March, 2016; 31 March, 2015
         and 31 March, 2014.
      g. The External Concurrent Auditor has experience in  financial years during the period 01, April 2008 to 31
         March, 2018 in concurrent audit of accounts of portfolio managers. Further, experience in a financial year was
         considered only if the total turnover (considering sum of turnover across all accounts of portfolio managers whose
         concurrent audit was carried out by the External Concurrent Auditor in the respective financial year) was at least
         Rs. 500 Crores.
      h. The average number of accounts of portfolio managers where concurrent audit was carried out as on March 31,
         2018, 31 March, 2017; 31 March, 2016; 31 March, 2015 and 31 March, 2014 is .
      i. The total experience of assigned partner of the External Concurrent Auditor in the concurrent audit of portfolio
         managers is  years as on the date of RFP.
      j. The External Concurrent Auditor would assign  chartered accountants in the proposed execution team
         for the said assignment.
      k. The aggregate experience of the proposed execution team in providing concurrent audit of portfolio managers is
          years as on the date of RFP.
      l. The External Concurrent Auditor has  staff members excluding fulltime Partners, who are chartered
         accountants.
      m. The External Concurrent Auditor shall forthwith inform the ESIC of any material change in the information or
         particulars previously furnished, which have a bearing on the appointment if granted.
      n. The External Concurrent Auditor shall comply with all the extant ESIC guidelines/ directions.


Solemnly affirmed and undertaken on the day and year herein below written, by:


Signature         ............................................................
Name              ............................................................


Request for Proposal for Appointment of ECA for audit of ESIC's investments                                     Page 34 of 37
Date              ............................................................



9.7     Format for affidavit
                                                                    AF FI D AV IT

I, ___________________________<>, am the Managing Partner / equivalent official of
_______________________<> ("External Concurrent Auditor") having its registered office at
_____________________________________________________<>. I am authorized to sign and
execute this affidavit on behalf of the External Concurrent Auditor for submitting a proposal pursuant to the Request for
Proposal dated 30 May, 2018 ("RFP") issued by the Employees' State Insurance Corporation (" ESIC") for appointment of
External Concurrent Auditor for audit of ESIC's investments. I, on behalf of the External Concurrent Auditor, solemnly affirm
and declare that:

      a. The External Concurrent Auditor / any partner have not been convicted by a court of law or indictment / adverse
         order passed against the External Concurrent Auditor / any partner till the date of application.
      b. The External Concurrent Auditor / any partner have not been barred or suspended by any regulator or ICAI or
         government authority or court of law in India from carrying out audit related activities in the last five years as on the
         date of RFP
      c. The External Concurrent Auditor / any partner are not in violation of any applicable law or judgment by any court of
         law or violation of any direction/order/regulation by a government/regulatory authority in India, and have not been
         black listed.
      d. There are no legal or arbitration proceedings or any proceedings by or before any government or regulatory
         authority or agency, now pending or threatened against the External Concurrent Auditor / any partner which, if
         adversely determined, could reasonably be expected to have a material adverse effect on its ability to perform the
         obligations under this assignment.

          OR

          There are no legal or arbitration proceedings or any proceedings by or before any government or regulatory
          authority or agency, now pending or threatened against the External Concurrent Auditor / any partner which, if
          adversely determined, could reasonably be expected to have a material adverse effect on its ability to perform the
          obligations under this assignment and any related documents that may be executed by the External Concurrent
          Auditor as may be required by ESIC, except as mentioned in Annexure I hereto with full detail of such investigation
          including the name of the investigating agency, the charge/offence for which the investigation has been launched,
          name and designation of persons against whom the investigation has been launched along with all other relevant
          information.

                                                                                    <>

                                                                 V ER IF IC AT I O N

      I verify that, the contents of this Affidavit are true and correct to the best of my knowledge and belief, and that nothing
      material has been concealed. In case of any concealment/ misstatement/ understatement of facts mentioned anywhere
      in the proposal, ESIC may at its sole discretion hold the External Concurrent Auditor liable to legal action as appropriate.

      Date:
      Place:

                                                                        <>
                                                                                             <>
                                                                                        <>
                                                 <>

Identified by me:




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                        Page 35 of 37
                                                                    Before me:




                                  10. Investment Pattern of ESIC
Investment pattern of ESIC:
10.1 Investment Pattern

  Sr. No.   Securities                                                                                         Percentage
                                                                                                               amount to be
                                                                                                               Invested

  (i)       Government Securities & Related Instruments (Government Bonds)                                     Up to 50%

  (ii)      Debt Instruments & Related Instruments (AAA rated PSU Bonds and Fixed Deposits of scheduled        Up to 45%
            commercial banks for more than 1 year, as prescribed in Ministry of Finance notification)


  (iii)     Short term Debt Instruments & Related Instruments (including bank fixed deposit up to 1 year and   Up to 5%
            money market instruments)


Note: The existing investment pattern as above is subject to change based on the notifications issued by the
Government of India from time to time.




Request for Proposal for Appointment of ECA for audit of ESIC's investments                                      Page 36 of 37
   Contact Details:


   Financial Commissioner,
   Employees' State Insurance Corporation (ESIC),
   Panchdeep Bhawan,
   C.I.G. Marg,
   New Delhi ­ 110002
   Email id: fin-comm@esic.nic.in




Request for Proposal for Appointment of ECA for audit of ESIC's investments   Page 37 of 37

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