V.O.CHIDAMBARANAR PORT TRUST
GRAMS : PORT TRUST Finance Department
PHONE : 2352290 (50 Lines) Administrative Office,
FAX : 0461 2352301 TUTICORIN -628004.
E-Mail : info@vocport.gov.in CERTIFIED UNDER ISO 9002 Web:www.vocport.gov.in
ISO14001:200 Fax: 0461-2352201
ISPS COMPLIANT PORT
Tender No. : FIN-OFFIA-ADT-INTER-V1-18
Name of work : Internal Audit of Financial Transactions of V.O.C.Port
Trust, Tuticorin by outsourcing the services for a period
of two years through firms of CAG empanelled
Chartered Accountants having Established Office at
Tuticorin in their own name only.
Probable amount of contract : Rs. 17,80,000/- (for a period of two years + GST as
applicable)
Cost of Tender Form : Rs.500/- + CGST 9% & SGST 9% as applicable from time to
time.
Date of commencement of tender : 29.05.2018 to 07.06.2018
Date & Time of receipt of tender : 12.06.2018 Upto 15.00 hours
Date & Time of opening of tender :12.06.2018 at 15:30 hours
Period of completion of work : Two years.
Validity of Tender : 90 days from the date of opening of Price bid
(cover-II).
Name of office issuing and receiving
Tender : Financial Adviser &
Chief Accounts Officer,
Finance Department,
V.O.Chidambaranar Port Trust
Tuticorin - 628 004.
For further details visit the Port website www.vocpt.gov.in before applying for tender schedule.
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V.O.CHIDAMBARANAR PORT TRUST, TUTICORIN
FINANCE DEPARTMENT
TENDER DOCUMENT
FOR THE WORK: "INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF
V.O.CHIDAMBARANAR PORT TRUST, TUTICORIN.
1. General
V. O. Chidambaranar Port Trust, Tuticorin is an autonomous body under the Major Port Trust
Act and functioning under Ministry of Shipping. The accounts of the Port are subject to
statutory audit by the Comptroller & Auditor General of India through the Principal Director,
Commercial Audit and Ex-Officio member, Chennai. The Port is assessed as Local Authority
under the Income Tax Act since assessment year 2009-10 as per Income Tax, Act 1961(prior to is
applicable to this Port since 2002-2003 and is subject to tax audit by Chartered Accountants
also. It is proposed to outsource the internal audit work to a registered firm of CAG empanelled
Chartered Accountant to get the work done in a professional manner. Apart from accounting
standards applicable, the port is following Works Account and Material Accounts as per
PWD/CPWD procedures in the matter of execution of works carried out through contractors
and Port operations under PPP model with Revenue sharing. The information about the Port is
available in the website of the Port at www.vocport gov.
1.Requirement & Eligibility
The work is quite huge in terms of volume of transactions. The working offices and work sites
are also spread over much larger area. In view of the above, the work is proposed to be
given to a reputed firm having the following criteria:
a) Experience in similar works in bigger organization like the Port with a turnover of more
than Rs.150.00 crores. (25% of Port's turnover of around Rs.600.00 crores)
b) The firm should also have at least 4 partners with professional qualification in the field of
work. This is considered necessary to ensure the continuity of operations and for getting
better inputs out of the proposed Audit .
c) The Auditor's firm should be approved by the C.A.G/R.B.I as eligible for internal Audit work.
d) The firm should have at least one system Audit qualified Chartered Accountant /Cost
Accountant.
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e) The firm should have adequate manpower in the category of Chartered Accountant( Final
and Intermediate ) and Audit Assistants for internal audit work to carry out the Audit as per
the scope and terms and conditions of Internal Audit of subject tender.
e)f) Further the firm shall deploy one class IV assistant on all working days of the Port and shall Formatted: Complex Script Font: Calibri
ensure minimum wages rate as per Minimum Wages Act 1948 as amended from time to Formatted: Complex Script Font: Calibri
time to be ensured and proof of minimum wages paid to be furnished.
2.Scope of work:
The scope of work covered in this is given in detail in Annexure- 1.
3.General instructions for Tendering:
(A) Tenders are invited in two covers. These covers should contain the following:
I. In cover I:
a)Cost of Tender and information for Technical evaluation. The cost of tender is to be
remitted through NEFT /RTGS transfer to the Port Account No.1 with Harbour Branch, Indian
Overseas Bank, Tuticorin -628 004 and the document in support of the remittance is to be
included in Cover I in PDF scanned copy-Annexure I.
b) The evidence in support of information about the Audit firm submitting the tender
Formatted: Font: (Default) Calibri, 11 pt,
stipulated in (a) to (e) of Sl.1 above, duly attested by Notary as Annexure II(attachment Complex Script Font: Calibri, 11 pt
Formatted: Font: (Default) Calibri, 11 pt,
serially numbered as (A) to (E) . The following are essentially required: Complex Script Font: Calibri, 11 pt
Formatted: List Paragraph, Justified, Indent:
Left: 0.75", Line spacing: 1.5 lines, Adjust
i)i.IIFRS Certificate issued by the Institute of Chartered Accountant of India space between Latin and Asian text, Adjust
space between Asian text and numbers
(ICAI) in the name of the partner. Formatted: Font: (Default) Calibri, 11 pt,
Complex Script Font: Calibri, 11 pt
Formatted: List Paragraph, Justified, Indent:
iiii). Letter of C & AG & R.B.I. empanelling the auditing firm for auditing PSUs for the year Left: 0.75", Line spacing: 1.5 lines, Adjust
space between Latin and Asian text, Adjust
2016-17-2017-18.. space between Asian text and numbers
Formatted: Font: (Default) Calibri, 11 pt,
iii) Brief Profile of the auditing firm indicating atleast 43 number of partners and giving Complex Script Font: Calibri, 11 pt
evidence from Institute of Chartered Accountants of India (ICAI) for the existence of the firm Formatted: Font: (Default) Calibri, 11 pt,
Complex Script Font: Calibri, 11 pt
for a period of atleast 10 seven years and having one partner with not less than 10 years Formatted: Font: (Default) Calibri, 11 pt,
Complex Script Font: Calibri, 11 pt
practice
Formatted: Font: (Default) Calibri, 11 pt,
iv) Work order, Completion Certificate, Balance Sheet and P&L Account of minimum five Complex Script Font: Calibri, 11 pt
Formatted: Font: (Default) Calibri, 11 pt,
different Public/Private Limited companies with an Annual Turnover of Rs.150 crores or Complex Script Font: Calibri, 11 pt
more for which the Internal audit have been conducted during the last five years (i.e) from Formatted: Font: (Default) Calibri, 11 pt,
Complex Script Font: Calibri, 11 pt
2013-14 to 2016-17. The Completion Certificates shall clearly specify the year of audit, work Formatted: Font: (Default) Calibri, 11 pt,
Complex Script Font: Calibri, 11 pt
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order reference number and date and self attested by Registered Associate/Fellow Member
and Partner of the Institute.
v) Self attested copy of the audited Balance Sheet and Profit and Loss Account certified by
the Chartered Accountant for the last three years ended 31.03.2017
vi) Formatted: Font color: Green, Complex Script
Font: Calibri
c) This tender document duly signed (including the Format prescribed as Annexure II to the
Tender Document duly filled in corresponding to information furnished vide Annexure I to
Cover I specified in (b) above) as Annexure III in Cover I
.( in scanned form to be attached to e-tender)
d) The Fax/E-Mail offers will be treated as defective, invalid and rejected.
e) Only detailed complete offers received through online prior to closing time and date of Formatted: Normal, Line spacing: single,
the tenders will be taken as valid. Don't adjust space between Latin and Asian
text, Don't adjust space between Asian text and
numbers
II. In Cover II: Price bid'. Formatted: Line spacing: 1.5 lines
a) The price bid for undertaking this work shall be furnished in the prescribed form Formatted: Indent: Left: 0.5"
`Annexure III' to the tender .
b) No conditionality is to be attached in the Price Bid other than furnishing the Price Quote
of the tenderer for the Bill of Quantities prescribed in the Price Bid format and Notes
furnished below Schedule of Price Bid . as per tender.
c) Tenders with conditionalities to the the Price Bid shall be withdrawn if found available in
the Price Bid attached by the Bidder ; otherwise, if not withdrawn , shall be summarily
rejected .
(B) Both these two covers will be sealed independently and enveloped in the main cover.
The main cover will also be sealed and submitted. All covers shall be superscribed to identify
the covers viz. Cover-I, Cover-II, and Main Cover indicating the name of work as "INTERNAL
AUDIT OF FINANCIAL TRANSACTIONS OF V.O.CHIDAMBARANAR PORT TRUST", Tuticorin.
Scanned copy is to be furnished for the above as part of e-tender.
(C) Price quoted shall be valid for a period of 90 days from the date of submission of Cover II.
4. Evaluation Method:
a) Since the tender involves selection based on pre-qualification criteria, the F.A. & C.A.O., Formatted: Justified, Indent: Left: 0.63"
V.O. Chidambaranar Port Trust will examine and seek clarification if any and list out the firms,
which are found technically suitable and Cover-II Price Bid of such tenderers only will be
opened.
b) The date and time will be intimated to bidders whose offers are found technically suitable
and Cover II of such bidders only will be opened on the specified date and time.
c). The successful Bidder shall execute an undertaking (Section 5) on a Rs.100/- non-judicial Formatted: Indent: Left: 0.63", Line spacing:
stamp paper for undertaking the services as per the scope of work and complying with the single, Don't adjust space between Latin and
Asian text, Don't adjust space between Asian
terms and conditions. text and numbers
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(D) The following conditionalities shall apply:
1. All pages of the tender document should be signed by a person authorized for the
purpose by the firm submitting the tender.
(2) The Port reserves the right to ask for clarifications from any tenderer on the details given
in the tender.
(3) Tender price will not be allowed to be changed after opening the Main Cover.
(4) The tender documents downloaded from the Port's web site should be used as such
without making any alterations.
(5) Any alterations /additions made shall not be considered and shall have no effect.
(6) The tenderer shall not specify any additional conditions. Any additional condition shall
be ignored and shall have no legal sanctity.
(7) Curriculum vitae of personnel to be deployed for the work shall be enclosed.
(8) The Port reserves the right to modify the whole or any part of the tender by issuing an
amendment in writing and this will be sent to all bidders by registered post / uploaded in
website also. Such amendments will be numbered and the same shall form part of
this "Tender Document".
(9) A)The tender should be sent to the Financial Adviser & Chief Accounts Officer, so as to
reach him before the due date/time in case of tender submission through hard copy is
chosen by the tenderer. The address is given below:
The Financial Adviser & Chief Accounts Officer, Formatted: Line spacing: single
V.O.Chidambaranar Port Trust,
Administrative Office,
Tuticorin 628 004. Formatted: Indent: Left: 1", First line: 0.5",
Line spacing: single
Telephone No: (0461) 2352254 Fax N0(0461) 2352201
E-mail: info@vocportgov.in Website: www.vocport gov.in Formatted: Line spacing: single
(OR) Formatted: Justified
(B) E-tender will be accepted as per E-tender clause and terms and conditions with
vide Annexure VII .
(B) E-payment procedure with epayment format for making payments to the successful
tenderer is to be furnished with information and duly signed by the tenderer.
Formatted: Indent: Left: 0.94"
4.Tender Prices:
(1) Tenders will be received only upto the date and time specified in the Notice inviting
tender. Tenders received after that date and time will not be considered and will be treated as
rejected.
(2)All tenders received by the due date/time will be opened at the date/time prescribed for
opening. i.e. the main cover containing Cover-I and Cover II will be first opened. Thereafter the
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Cover-I containing the technical bid or the information about the tenderer will be opened.
Cover II will be kept unopened.
(3)Tenders received without the cost of tender document (if not already paid) will be rejected.
(4)Tender for which the cost are received will be considered for further process to analyze the
capability of the firm to take up the work. Those found to satisfy the pre-determined criteria
will be treated as qualified. The qualified tenderers will be informed of their selection by
Registered Post/Mail. They will be allowed for witnessing the opening of Cover-II which will be
sufficiently informed in advance, tenderers who wish to attend may attend at their own cost.
(5)On the appointed day Cover-II of the qualified tenders will be opened.
(6) The work will be awarded to the lowest offer. In case of a tie, the tenderers who have
quoted identical rates will be asked to quote again to decide the lowest among them.
(7)Upon final selection the successful tenderer shall be issued with a written work order to
commence the work.
5.Issue of work order and commencement of work:
The firm to whom the work is awarded shall acknowledge the receipt of work order, pay
the performance security and sign a formal agreement as per Annexure -V within 15 days
from the date of work order. Upon signing the contract agreement, the contractor shall
commence the work within a week. If the work is not commenced within the stipulated date,
the Port shall proceed to cancel the work order.
6. Performance Security:
The successful tenderer to whom the work order has been issued with shall pay a
performance security equal to 5% of the tendered value to the Port before signing the
contract agreement and commencing the work. The deposit will be with the Port till the
work is completed and will be returned immediately thereafter. The deposit will not carry
any interest. If the work is abandoned, or if the contract is terminated by the Port or serious
violation of the contractual terms , the deposit will be forfeited. The tender has the option to
furnish the performance guarantee in the form of a Bank Guarantee from a Nationalized/
Scheduled bank payable at Tuticorin. The form of Bank Guarantee is enclosed as Annexure
VI.
7. Performance of work:
(a)The work shall be carried out as set out in the scope of work covered in the contract. The
Chartered Accountant firm on award of the work shall commence the work by deploy the required
and adequate manpower with required qualification for executing the scope of work. Further
compliance of ESI Act 1948 & EPFand MP Act 1952 shall be ensured..
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(b) All requirement of stationery shall be provided by the contractor himself and they should bear
the firm's name for identification of reports/documents generated by them.
(c) The place of work shall be the Administrative Office of V.O.Chidambaranar Port Trust. However,
in case of necessity they may visit the work site/divisional offices with prior intimation/appointment
of the officer in charge.
(d)The normal office working hours will be from 10.00 am to 5.00 pm.
(e)Access to computer terminals connected to the Integrated Computer System of the Port will be
provided.
(f) Place of work and furniture will be provided by the Port free of cost at the Administrative
Offices.
(g) The tenderer and his employees shall maintain strict confidence of all information received by
them in the course of performance of their duties. Any violation in this regard will be viewed
seriously and will be liable for appropriate action. They shall not take any document/materials
outside the Port premises without the written permission of the designated officers of the Port.
(h) The work shall be carried out as per the scope and procedure indicated in the tender. On
completion of audit of each quarter a detailed report in the prescribed form is to be submitted
indicating the volume of work done in the form of statistics as well as in the form of running note
highlighting the observations, proposed rectification alongwith details of the opening and closing
meeting held by the Internal Auditor with concerned Heads of Department. The Internal Audit
Report for a particular quarter shall be submitted within the calendar month following the
completion of each quarter(calendar period).
8. Payment for work done:
The bill for each quarter shall be claimed enclosing the relevant Quarterly Report . Payment for the
work done will be made on a quarterly basis within 15 days of submission of the Quarterly Report to the
Financial Adviser & Chief Accounts Officer alongwith the prescribed documents to be enclosed as per
Section
9. Taxes:
Income tax and all statutory taxes, surcharges, etc. shall be deducted from the payments and TDS
will be made by the Port at the time of each payment.
10.GST:
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GST payable by the Port, if applicable will be paid as per the actual on production of documentary
evidence (i.e) with GST registration Number and in the GST Invoice .
11.Security Deposit:
Deduction @ 10% of each bill shall be made towards Security Deposit subject to a maximum of 5% of
the contract value subject to such additions / deductions thereto will be made. The security deposit
shall be held by the Port and shall be refunded after 6 months of completion based on receipt of no
due certificate to the Port from concerned offices of the Port. This deposit will not carry any interest.
If the work is abandoned, or if the contract is terminated by the Port for serious violation of the
contractual terms, the deposit stands forfeited.
12.Termination of contract:
The Port reserves the right to terminate the contract for any violation of the contractual terms
and non- performance of work to be carried out under the contract. The Port shall however
proceed to terminate the contract only after giving an opportunity to the contractor in the form of
a notice to be given in writing to explain the reasons for the violations and slippages. If the
contractor fails to rectify the violation / slippages, the Port may proceed further to terminate the
contract. All deposits relating to this contract will be forfeited.
Similarly the contractor may also terminate the contract by giving one month notice in
writing explaining the reasons for seeking termination. If the reasons for termination is due to
his inability to continue the work, all deposits relating to this contract will be forfeited. If the
contract is terminated by the Port for its own administrative reasons, the deposits shall be
refunded to the contractor. In that event, payments to the contractor will be made to the extend of
satisfactory completion of the scope of work upto the period of termination.
13. Penalty for delays :
The Quarterly Report on Internal Audit for each Quarter shall be submitted within one calendar month
following the completion of each Quarter as specified in Clause 7(h). For delayed submission of
Quarterly Report, Penalty of 1% of Audit Fee quoted in Sl.No.1&2 of each quarter will be levied for
each week or part thereof of delay subject to a maximum of 10% of total value of contract
throughout the contract period.
14. Period of contract:
The term of the firm of Chartered Accountants will be initially for a period of two years and the
same may be extended for a further period of one year on mutual consent.
15.Conclusion:
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The Port reserves the right to reject the tenders and without any liability for administrative
reasons.
16. Note:
The last date & time for receipt of tender: 12.06.2018 at 15.00 hours
Date & time of opening the tender : 12.06.2018 at 15.30 hours
ANNEXURE 1
1.Scope of Work
(1) The Internal Audit is to be conducted with a view to see whether:
(a) All the transactions involving financial implications are properly accounted for;
(b) The initial accounts records are maintained correctly and accurately;
(c) There are no delays and /or irregularities in maintaining the Accounts and reports,
statutory regulation ;
(d) The provisions of the accounting standards, accounting procedure, rules and regulations,
orders and procedure in force and instructions issued by the Chairman /F.A.&CAO from time
to time are followed; and
(e) Reports submitted are supported by basic records.
(2) It is also within the purview of audit to bring to light any other points of interest which
may lead to reduction in costs and increase in efficiency. It may even suggest modifications in
the existing procedure for achieving the above objectives.
(3)The role of internal audit should be such that it will be envisaged as a service input in an
organization and should be a valuable focal point for management planning and control.
(4) For this purpose, the approach should be on a selective basis. rather than a searching
examination of debits and credits.
(5)The coverage will be relating to Port and all transactions of Cargo handling Division.
2. Periodicity and Methodology
The period of this contract is to cover all transactions relating to two three years starting
from the year 1st June, 2018. However, the continuance for the 2nd year , will be given in writing
by the Port after completion of the assignment for the previous year. The audit will be
conducted as per scope of work specified in the tender on a continuous basis throughout the year.
Internal Audit will cover all the departments at least once in a year and a programme for the same
is as follows:
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I/II/III year :
a) I Quarter- Finance Department (Revenue I Section and Works Section) and Medical
Department and EDP Department.
b) II Quarter-Finance Department (Revenue II Section and Mech and Electrical Works Section)
and Civil Department.
c) III Quarter-Finance Department (Paybills Section , Pension Section and Advances Section) and
Mechanical and Electrical Engineering Department.
d) IV Quarter- Finance Department (Tax Section and Admn, Medical ,Marine and Estt Section)
and Traffic Department and General Administration Department.
3.INTERNAL AUDIT REPORT:
(i) The report shall be submitted in two parts. The first part will contain a summary of
significant irregularities and second part will contain all the other irregularities, deficiencies etc.
noticed requiring rectification recoveries or adjustments. Annexure `A' to the Report as enclosed
should be attached to each report.
(ii)The report should be submitted with 1 CD and 2 hard copies and bymail to FA mail.
(fa@vocport.gov.in)
(iii) The report should not be a repetition of C&AG'S audit remarks or it should not be just
generated report available in the System either fully or partially. Report should concentrate/give
more attention to improvement in System Controls / Office procedures etc. Qualitative information
to management on cost /benefit analysis various operation /investments etc.
(iv) The report should state the Name, Qualification etc of all the persons who understood Internal Audit
of that quarter.
(4)Special report should be submitted for each quarter (July to Sep...etc) on any functional area
within the next quarter Payment for the same is subject to acceptance of the report (Report will
be accepted if it is of a reasonable quality bringing out scope for revenue increase, reduction in
expenditure, system improvements etc).(v) The opening & closing meeting of Internal Auditor with
the HOD shall be enclosed with the quarterly report.
4 REVENUE RECEIPTS:
A. GENERAL
It should be verified whether all charges due to the Port Trust are correctly raised /
realized as per the approved tariff, demands raised promptly and collections realized and
credited to the Port account immediately. All instances of undue retention of authorized
collections by other departments without remitting to the Port account should be brought
to notice. Unauthorized collections made by other departments, if any, should be
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brought to notice. It should also be verified whether adequate steps have been taken to
realize the arrears, if any. The raising of demand and collection of revenues from PPP
operators are also to be covered.
B. ESTATE RENTAL, WATER SUPPLY AND ENERGY CHARGES
I) Rent: It should be checked whether demand for rent, charges for supply of
water and energy are raised promptly in all cases as per approved tariff and with
reference to Building and Land allotments in force. Also it should be verified whether
all demands have been realized as per demand and credited to Port account
immediately.
II)Electricity charges: In the case of electricity charges the first verification to
be carried out is whether the total energy drawn / consumed is properly allocated
among the Port, Port users contractors and employees. Then it should be ensured
whether the demands have been generated and issued to all cases which should tally
with the allocation done earlier. Then it is to ensure realization of charges
demanded and remittance to Port account as the same.
III)Water charges: As in the case of electricity charges, water charges recoverable
from various users should be first assessed out of the total charges paid to TWAD
Board. Demand and collection of charges to be verified in the similar way as in the
case of electricity charges.
C. MISCELLANEOUS RECEIPTS:
The basis for assessment of charges for miscellaneous services, charges for hire of
machineries, equipments, centage charges for deposit works/works done for outside
parties, raising of demands, collection of dues and crediting the dues collected in Port
account should be verified.
5. Vouching contract Payment & Tenders of high value:
The important activities like finalization of Tenders for supply of Machinery, award of
contract for Dredging and payment to Contractors/Suppliers and high value Contractors
are to be audited by Internal Auditors in addition to other works listed above.
6.INSTRUCTIONS ON CHECKING CASH AND STOCK TRANSACTIONS:
The following are some of the checks of general nature to be exercised while conducting
audit of cash and stock transactions. These, however, should not be taken as exhaustive. Other
checks suitable to the occasion should be adopted wherever necessary.
(i) It should be verified that all transactions (either cash or stock) are promptly and
properly recorded in the relevant records and there is no delay or omission on this
account.
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(ii) It should be verified that amounts received to the account of FA& CAO or other source
have been taken to account on the same day.
(iii) It should be verified that amounts received from the FA&CAO account on account of
permanent and temporary advances etc. for disbursement are not retained in hand
beyond the permissible time limit and the undisbursed amount, if any, promptly deposited
with FA&CAO account. The permanent and temporary advance as shown in the accounts
should be checked to see that these are correctly maintained and accounts there of have
been rendered to the FA&CAO account within the prescribed time. Irregularity or delay in
adjustment should be brought to notice of FA&CAO.
(iv) The correctness of stock entry certificates recorded on the vouchers in support of
purchases should be checked in respect of any one month being selected by the
Accounts Officer/FA&CAO.
(v) It should be verified that issues from the stock are made on proper requisitions, duly
acknowledged by the recipients and correctly entered in the Stock Registers.
(vi) Accuracy of the balances shown in the cash and stock books should be checked in all
cases.
(vii)The correctness of the amounts drawn in pay bills and T.A. Bills should be checked
with the attendance Register, tour particulars, vehicle log books etc.
(viii) The amount of deductions made in salary bills towards leave or absence to be checked
with reference to attendance.
(ix) Physical verification of stores of general nature, tools & plants and other general stores
in all departments including guest houses and other offices of the Port Trust should be
done.
(x)Apart from stores of general nature, stock of medicines, spares, wherever maintained
shall also be verified.
(xi)Stock of postage stamps, bank guarantees wherever held are to be checked.
(xii) Register of reference books should be checked to see that books purchased during
the year have been taken to stock and proper record is maintained as to issues and
returns.
(xiii)It should be verified whether the cash balance available in the cash chest are verified
daily.
7. VERIFICATION OF SERVICE BOOKS OF EMPLOYEES:
The service books including the leave accounts of all the employees should be checked to
verify whether they are maintained properly as per instructions contained in Rules 196 to
Rule 203 of the Supplementary Rules.
8)CHECK OF DIVISIONAL OFFICE RECORDS:
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i.While auditing the workshop accounts, the job cards and out turn register should be
checked in detail. The correctness of the allocation of expenditure on repair and maintenance
of workshop to various works should be checked. The use of new parts should be entered into
the log books and other connected registers. The account and manner of disposal of old and
replaced parts should be particularly checked. In the case of jobs under-taken on behalf of
private parties it should be seen whether the cost thereof has been calculated according to
rules, recovered and credited to the Port Trust accounts.
ii. The log books of vehicles, including buses, lorries, light vehicles. two wheelers etc.
cranes, machines should be checked regarding mileage run, working hours, consumption of fuel,
lubricants, furl, etc. It should be seen whether the log books have been properly maintained
and entries thereon have been duly attested by proper authorities where the log books exhibits
use of vehicle, machine etc. by private parties, it should be seen whether full and correct hire
charges have been recovered. If the log book reveals misuse the reason there for should be
investigated and brought to notice.
iii.The accounts of Tools and Plants should be checked.
iv.In case of purchases it should be verified whether purchase have been made as per the
prescribed procedure.
v. Internal audit is expected to test check entry of items from the goods received statement
and indents to the bin cards. The balancing of the bin cards should also be checked in order
to ensure the correctness of the quantitative balances. Special attention should be given to
the review of ABC analysis, list of missing items, non moving items and excessive balances.
vi.Where Material At Site (MAS) Accounts are maintained, it should be seen whether the
accounts are maintained as per provisions of CPWD "A" Code and ground balances are
verified at least once a year.
vii.The accounts of the out patient treatment charges collected at Port Trust Hospital should
be verified and to see whether amount was properly accounted for.
viii.The records maintained at Estate section towards rentals collected for hiring `Community Hall'
for private functions should be verified based on the occupation. The demand, collection and
remittances shall be verified.
ix.The records relating to Port Guest House on occupation collection and remittance of rent
and other charges shall be verified.
x.The Internal Audit should carry out mandatory scrutiny of the bills and records listed out in
Annexure- IV.
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9. ERP related implementation
The Port has implemented the ERP by adopting SAP for all operations of Port. The Internal
Audit is to ensure continuously the control system is in the place for raising demand,
collection of revenues, TDS and other deductions in the payments and interfaces points
between POS, HR , etc. with FI and also like PPP operations and highlight all receipts and
payments are as per authorized transactions and no duplicate or triplicate triggering of
receipts and payments take place.
10. COMPLIANCE:
The firm should furnish a compliance report as per Annexure B in respect of pending
reports/remarks till completion of action/closure status.
A. MANPOWER REQUIREMENT
The Audit Team should be headed by a partner who shall be a Chartered Accountant with office
inTuticorin and the Audit team may comprise of atleast 3 groups with atleast 2 staff in each group and
they shall carryout the Audit simultaneously in various departments / different areas.
B. TERMS OF PAYMENT
i) The fees shall be quoted on financial year basis.
ii) The payment will only be made on quarterly basis after completion of audit /submission of report for
each quarter and also after considering the Compliance Report submitted by respective Departments
for the Action Taken on the queries of the concerned departments. The tax invoice of bill shall be raised
as per GST provision and the payment shall be made after deducting applicable TDS and other
recoveries.
(iii)The payment for the fourth quarter of the respective financial year will be made after completion of Formatted: Normal, Indent: Left: 0.06", Don't
adjust space between Latin and Asian text,
Internal Audit of all Departments. Further, the payment for the fourth quarter of the financial year will Don't adjust space between Asian text and
be subject to submission of final report consolidating all the quarterly reports and covering the entire numbers
scope for every financial year after considering the compliance report submitted by respective
Departments for action taken on the Audit queries / observations of the concerned Department.
C. NOMINATION OF A PARTNER
The Chartered Accountant firm shall nominate a partner exclusively to dealwith the Internal Audit and
coordinate with VOC Port Trust at all times.The partner shall be in a position to visit the Port at any
time on any number of occasions for the purpose of carrying out the Internal Audit work. Apart from
that the Partner of the firm shall also be in a position to come for anydiscussion/meeting convened to Formatted: Normal, Indent: Left: 0.06", Don't
adjust space between Latin and Asian text,
deliberate on the Internal Audit Report on any number of occasions at any point of time. Any non Don't adjust space between Asian text and
response/default in this regard will be considered as deficiency in service. The Chartered Accountant numbers, Tab stops: 0.88", Left + 1.13", Left
14
firm shall give the details of the partner so nominated along with the address, telephone no., mobile
no., fax no., email ID, etc. Any change in the partner's nomination shall be made only after getting
prior written consent from V.O.Chidambaranar Port Trust.
Annexure II
Information to be furnished along with the tender
For evaluating the status of firms participating in the tender for the work
"INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF V.O.CHIDAMBARANAR PORT TRUST
1. Name of the firm :
2. Registration no. and date :
3. Agency whom registered/C.A.G/R.B.I
With details :
4. Validity of the registration :
5. Address of the firm :
6. Telephone no. :
7. E-mail address : FAX no:
8. No. of years in the business : PAN No.:
9. Statistical information about the firm for the past three years:
No. Particulars 2014-15 2015-16 2016-17
1 Total man power in the firm all inclusive
2. a) Total number of licensed professionals
( Chartered Accountants and Cost Accountant)
b) System Audit certified Personnel (with proof to be
attached)
3 Total number of clerical assistants
4 Total number of assignments of similar nature done
so far.
Copies of the works orders and Completion reports in
respect of assignments already completed to be
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given.
5 Total number of assignments on hand.
Copies of work orders on hand to be given
Enclose the details of assignments done sofar/on hand
in the annexure.
Enclose copies of:
1. Copies of latest Income -tax return filed.
2. Copies of Certified Statement of Accounts of the firm for the past 3 years
3. Xerox copy of income tax PAN card.
4. Power of attorney to establish the authenticity.
5. Copy of the Registration Number under Goods and Services Tax Rules.
6. Evidence for Qualification for Chartered Accountants/System Audit Certified personnel.
ANNEXURE III
MANDATORY SCRUTANY OF BILLS AND RECORDS
I. REVENUE SIDE
Sl.No. Area No. of files/bills to be
Checked on random
basis p.m.
1 Vessel Related Charges 10%
2. Cargo Related charges 10%
3 Miscellaneous charges 20%
4 Lease of Lands- rental charges (Long term Lease) 100%
5 Lease of Lands- Rental charges ( Short term Lease) 10%
6 Water charges 10%
7 Electric charges 10%
8 Temporary Power supply 10%
9 Guest House charges (Collection & Remittance) 5
10 Cash collections including Bus Pass Collection( Staff) 5
II Payment Side"
Sl.No. Area No. of files/bills to be
Checked on random basis
p.m.
1 Refund of Revenue Bills 20%
2 Work bills more than Rs.crore each 10%
3 Purchase Bills less than Rs.1 crore 10%
4 E.M.D.Refunds 10%
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5 Medical Bills(Firm Bills) 5%
6 Pay bill recovery refund 5%
A. No.of Officials Previous Month Current Month
B.Pay bill drawn
C.No. of contract employees
D. Bill drawn on (c)
7 Pay bill /Pension drawn
8 Sanction of Increments , withholding of pay, Tax calculation
with respect to Pensioners , Senior Citizens for automatic
implementation in System
III PHYSICAL VERIFICATION
Sl.No. Area No. of bills to be
Checked
1 CASH VERIFICATION
a. Cash Section Once in a month
b. Green gate Check post/Zone A/Truck Park/Toll Gate 1 Pass issue once in a month
2 STOCK VERIFICATION
a. Stores Once in a month at least
25%of items on rotation basis.
b. Petrol Bunk Once in a month
c. Sub division Stores 5 Sub divisions once in a
month
d. Hospital/Dispensary Medical Stores once in a
month
e. Fixed Assets Once in a year in the month of
March.
3 ACCOUNTING SIDE No. of records to be checked.
a. Suspense Register Review 10 Suspense Register every
month
b. Cash book Rev./Fund/Other Fund Cash Books Every month
c. TDS Recovery/Payment Once in a month
d. Remittance including ITC Credit adjustment Once in a month
e. VAT Recovery/Payment Once in a month
f. Monthly Accounts Review Once in a month
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Annexure IV
Form of agreement
This agreement made this ......................... Day of .................................2018 between the Board of
Trustees of the V.O.Chidambaranar Port Trust, a body corporated under the Major Port Trust's Act
1963(hereinafter called the `Board')which expression shall, unless excluded by, repugnant to the
context, be deemed to include their successors in office)on one part
AND...........................................................................................................................................................................
....................................................................................................................................................................................
........................................................(hereinafter called the `Contractor' which expressed shall, unless
excluded by, or repugnant to the context be deemed to include his heirs,executors,administrators,
representatives and assigns or successors in office)on the other part.
WHERE AS the Board is desirous of executing the work, WHERE AS the Contractor has offered to
execute and complete such work and WHERE AS THE BOARD has accepted the tender and WHERE AS
the Contractor has furnishe a sum of
Rs.............................(Rupees.......................................................................................................................................
....................................................................................)as Performance Security as per terms of contract for the
due performance of this Contract.
Now this agreement witnesseth as follows:
1. In this agreement words and expressions shall have the same meaning as are respectively
assigned to them in the tender document hereinafter referred to.
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2. The following documents shall be deemed to form and be read and construed a part of this
Agreement, namely,
(f) Tender document with all Annexures.
(g) All amendments to tender document;
(h) Work order;
(i) Letter of acceptance/acknowledgement; and
(j) Agreement deed.
3. The contractor hereby convenants with the Board to execute and complete the work in
conformity and in all respects with the provisions of the Contract.
4. The Board hereby convenants to pay the Contractor in consideration of the execution and
completion of the works, the contract price at the time and in the manner prescribed by the
Contract.
IN WITNESS WHEREOF the parties hereunto have set their hands and seals the day and year
first written.
The Common Seal of the Trustees of V.O.Chidambaranar Port was hereunto affixed and
The Chairman/other authorized officer thereof has set his hand
in the presence of:
Signed and sealed by the Contractor
in the presence of:
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Annexure V
Form of Bank Guarantee for Performance Security
In consideration of the Chairman representing the Board of Trustees of V.O.Chidambaranar Port
Trust(Herein after called the "Board") having agreed to extend. . . . . . . .. . .. . . . . . . . . . . . . . . . . .. . . . . .
. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. .. . . . . . . .(hereinafter called the
`said agreement') of Performance security for the due fulfillment by the said contractor of the terms
and conditions contained in the said agreement on production of Bank Guarantee for
Rs.......................(Rupees
.......................................................................................................................................................................................
.......)
1. We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (hereinafter ref erred to as `The
Bank') at the request of . ..................................................................... contractor do hereby undertake to
pay to the Port on amount not exceeding Rs.. . . . . . . . . . . . . against any loss or damage caused to
or suffered or would be caused to or suffered by the Port by reason of any breach by the said
contractor of any of the terms or conditions contained in the said agreement.
2.We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . do hereby undertake to pay the amount
due and payable under this guarantee without any demur, merely on a demand from the Port stating
that the amount claimed is due by way of loss or damage caused to or would be caused to or
suffered by the Port by reason of any breach by the said contractor of any of the terms and
conditions contained in the said agreement or by reason of the contractor failure to perform the
said agreement . Any such demand made on the bank shall be conclusive as regards the amount
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due and payable by the bank under this guarantee. However, our liability under this guarantee shall
be restricted to an amount not exceeding Rs.. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. We undertake to pay to the Port any money so demanded not withstanding and dispute of the
disputes raised by the contractor in any suit or proceedings before any court or tribunal relating
thereto our liability under this present being absolute and unequivocal.
4.The payment so made by us under this bond shall be valid discharge of liability for payment
there under and the contractors shall have no claim against us for making such payment.
5.We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . further agree that the guarantee
herein contained shall remain in full force and effect during the period that would be taken for the
performance of the said agreement and that it shall continue to be enforced till all the dues of
the Port under or by virtue of the said agreement have been fully paid and its claims satisfied or
discharged or till the Finance department , V.O.Chidambaranar Port Trust certifies that the terms
and conditions of the said agreement have been fully and properly carried out by the said
contractor and accordingly discharges this guarantee. Unless a demand or claim under this guarantee
is made on us in writing within three months from the date of expiry of the validity of the guarantee
period we shall be discharged from all liability under this guarantee thereafter provided further that the
bank shall at the request of the Port but at the cost of contractor renew or extend this guarantee for
such further period or periods as the Port may require.
6.We ............................................................................................................................... further agree with the
Port, that the Port shall have the fullest liberty without our consent and without affecting in any manner
our obligations hereunder to vary any of the terms and conditions of the said agreement or to extend
time of performance by the said contractor and to forbear or enforce any of the terms and conditions
relating to the said agreement and we shall not be relieved from our liability by the reason of any such
variations or extension being granted to the said contractor or for any forbearance, act or omission on
the part of the Port or any indulgence by the Port to the said Contractor or by any such matter or thing
whatsoever which under the law relating to securities would but for this provision have effect of so
relieving us.
7.This guarantee will not be discharged due to the change in the constitution of the bank or the
contractor.
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8.We........................................................................................................ lastly undertake not to revoke this
guarantee during its currency except with the previous consent of the Port in writing.
9.This guarantee is valid upto .............................(Period)
Dated the .................................day of.............................
Seal of Bank.
ANNEXURE A
FINANCIAL BENEFIT STATEMENT
(Should be a annex to each audit report vide Annexure l Rules3(1) )
Sl.No. Month Para No. Amount indicated in the report Amount Details of
Lower income realization recovered Recovery
(or)over payment
22
ANNEXURE - B
COMPLIANCE REPORT
(Should cover reports which are submitted 2 months earlier)with reference to Annexure l Para(7)
Sl.No. Month Para No. Brief remarks Reply accepted/ or not Present status
23
PRICE BID
`INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF V.O.VHIDAMBARANAR PORT TRUST', TUTICORIN
ON CONTRACT BASIS
Rate in rupees
Description of work Stage of Percentage of Rate in Amount Amount
Payment total amount lumpsum for p.a For 2
quoted every years
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quarter
Conducting Internal Audit of 1) Fees for
all financial transactions of conduct of 70%
V.O.C. Port Trust, in Internal Audit
accordance with the
Accounting Standards, Income 2) Submission
Tax Act and other accounting of report every 30%
procedures of the Port as set quarter
out in the tender document
under the `Scope of work' for 3) Total quote
a period of two years.
4) GST on (3)
5) Grand Total
Note:
1. The rate indicated above is valid for First year and escalation is payable at 5% per annum on the
above quote for second year.
2. Payment will be made on or after submission of quarterly report within 30 days of completion
of each quarter .
3. Rate shall be indicated in figures as well as in words. In case of differences, the amount stated
in words will prevail.
4. The rate should be written or typed legibly and free from erasures, overwriting and
corrections.
5. Corrections/overwriting if unavoidable shall be made by scoring out and rewriting afresh and
it shall be attested with dated signature.
6. The rate shall be all inclusive. Only GST as applicable will be reimbursed extra.
7. The amount payable is subject to TDS of all kinds.
8. Rates for one class IV Assistant (Minimum wages rate as per Minimum Wages Act 1948 as
amended from time to time to be ensured & proof of minimum wages paid to be furnished and
to be deployed on all days in a month during the year except Sunday declared holidays of Port..
9. The provisions of ESI Act 1948 and EPF&MP Act 1952 shall be complied with.
Signature with Seal of the Company
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