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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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#
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
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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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