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Housing And Urban Development Corporation Limited, Raipur, Chhattisgarh

June, 01st 2018
Housing & Urban Development Corporation Limited (HUDCO) (A Government of India EntereriSe) RAlpUR REGIONAL OFFle . 1-8. Surva Aoartment. Katora Talab. Netaji Chowk, Main Rd, Raipur, Chhattisgarh 492001 Ph. +91(0771) 2427796,2425517,4053738 Fax: +91(0771) 2422023 Ref.No. HUDCO/RR0/42/2018-191 Date 18.05.2018 Sub:- Notice inviting tender for Appointment of Chartered Accountant Firms as Internal Auditors at Raipur Regional Office for undertaking comprehensive Internal Audit for the Financial Year 2018-2019- Reg. Sir, Housing and Urban Development Corporation Ltd. (HUDCO), a premier techno financing institution under the Ministry of Housing and Urban Affairs, Govt. of India is engaged in providing long term loans for financing of Housing and Urban Infrastructure Projects. HUDCO Regional Office, Raipur intend to engage Chartered Accountant firm as Internal Auditor for our Regional Office accounts for the year 2018-19, with respect to Projects Sanctions and Releases, DMRC & Pre-Audit, our financial accounts, Administration, Real Estate and Human Resources, HUDCO Niwas Retail finance accounts (No. of Accounts -15) and our Public Deposit Scheme Accounts(No. of Accounts-12), Income Tax Related, GST Related, IND-AS Related, Certification of KYC &PML Certification and Incidental Matters. The details are enclosed herewith. The following conditions are applicable with regard to submission of quotation for award of work by HUDCO Regional Office Raipur. (I) The Scope of Work broadly covers the points as per enclosed Annexure-III, IV & V (II) ELIGIBILITY CRITERIA: · The Chartered Accountant Firm should have at least three years' experience in undertaking Internal Audit work of Public Sector Undertakings. · CA Firm should have minimum three number of partners (CAs) and minimum five number of paid assistants {qualified (CA/CMA)/semi qualified(CA/CMA- inter)}. · CA firm should have local office within the region having minimum five working staff (including one partner) i.e., only CA firms which are located in Raipur will be considered. · CA Firm should have at least two years' experience in handling Tax related matters including filing of TDS in respect of Public Sector Undertakings. · The scope of work should broadly cover the points as given in Annexure III, IV and checklist (Annexure V) (for monthly trial balance, projects, Finance, Accounts, Administration, Real Estate and HR, HUDCO Niwas, PDS Related, Income Tax Related, Goods & Service Tax (GST) Related, IND-AS Related, KYC & PML Certification and Incidental matters. · While evaluating the technical bids, CA firms' capability to perform the audit related work will be assessed and inspection of their office may be carried so as to establish the fact that the CA firms have local office. · CA Firm to give an undertaking: i) that none of the partners has any relation with any employee of HUDCO and also none of them has any relationship within the meaning of Section 2(76) of the Companies Act, 2013 and also that none of them has any relationship with the Statutory Auditors (M/s. Prem Gupta & Co.) and also will ensure compliance under section 184 and 188 of the Companies Act, 2013. ii) Certified that we have not been appointed for carrying out certification/consultancy or such related work of the same Regional Office which will have conflict of interest with the assignment as above as Internal auditors of the said Regional Office. (III) SELECTION PROCEDURE: The selection of CA Firm will be carried out by following two-bid system i.e tenderer shall be required to submit technical and price bid in separate sealed cover in overall sealed envelope. (1) Firms shall be short listed on the basis of technical bid. While evaluating the technical bid, Consultant's capability to perform the certification work may be assessed and inspection of their office may be carried out so as to establish the fact that the Consultant has proper local office. (2) Financial Bid will be opened in respect of firms short listed based on Technical Bid. (IV) TENURE OF THE APPOINTMENT: The CA Firm may be engaged for a continuous period of three years. However, their appointment shall be renewed on yearly basis based on the satisfactory performance in the previous year with the approval of Head Office. (V) ESTIMATED COST OF CERTIFICATION WORK: The total estimated fixed certification fee of Rs.1,61,200/- and variable fees as mentioned in Annexure-II excluding GST for the entire year. The quarterly payment shall be made @80% of the fees due and balance 20% shall be released after audit of annual accounts by Statutory Auditors and Issuance of Tax Audit Report in the subsequent Financial Year. (VI) GENERAL TERMS & CONDITIONS: (1) The CA Firm is expected to undertake the review for each month's transactions in the first week of succeeding month and submit a report in prescribed format duly addressed to respective Executive Director/General Manager (General Accounts Section) at Head Office by 10th of every month. (2) Regional Office may also take assistance of the CA Firm in carrying out the necessary rectifications promptly with a view to keep the updated record. (3) HUDCO has the right to replace CA Firm, if it is found that the performance, reporting / verification are not of required standard. (4) Any modification in offer after the last date of submission will not be considered. (5) Offers received late will not be considered. HUDCO Regional Office Raipur will not be responsible for any postal delay or any delay whatsoever. (6) HUDCO Regional Office Raipur reserves the right to accept or reject any or all offers without assigning any reason. 2 (7) In case any information/clarification is required in respect of Tender, the same may be obtained by visiting HUDCO Regional Office Raipur during working days (Monday to Friday between 10:00 a.m. to 5:00 p.m.). (8) Payment of fees/charges shall be made through RTGS/NEFT for which the bank details will have to be submitted by the selected firm. (9) The bidder shall sign at the bottom right hand corner on all pages of the tender Documents. (10)Any damage to company or property due to negligence of the staff posted by Consultant at HUDCO, will have to be compensated by the Consultant (11)Applicable Tax will be deducted at source from the bills as per the prevailing rules and the TDS certificates will be issued to the Consultant. (12) In the event of any differences or disputes on any matter whatsoever, the decision of the Regional Chief, Raipur shall be final and binding on both the parties. (13) The Consultant must be a GST complied service provider. The copy of GSTIN registration certificate should be provided. (VII) Submission of Bids (1) Tenderer shall be required to submit Technical Bid ( comprising of Annexure I,II,III,IV &IV along with all supporting documents) & Financial Bid (Annexure VI only) in separate sealed cover clearly indicating "Technical Bid" & "Financial Bid" and place it in in overall sealed envelope superscribed as. "Appointment of CA Firms as Internal Auditors for the Financial Year 2018-2019". (2) The offer/quotation should include the firm's detailed profile including the firm's name, address, date of establishment, detailed profile of partners and brief details of paid CA's associates/support staff, clientele (PSUs, Banks, Other Companies) experience in handling work of PSUs along with supporting documents as part of Technical Bid. Quotation/Offer can be sent by post or deposited in tender box available at Reception on 1st Floor in HUDCO 1-B Surya Apartment, Katora Talab, NetaJi Chowk Main Road, Raipur, Chhattisgarh 492001. (3) The last date and time for submission of offer is 01.06.2018 by 03:00 P.M. (4) The Technical Bid will be opened on 01.06.2018at 05.00 P.M. (5) The Financial Bid of short listed firms on the basis of Technical Bid shall be opened on 06.06.2018 at 12.30 P.M. Thanking you, Date :- 18.05.2018 0}1IrMi? AGM(FinanCr .. 3 Annexure-I TECHNICAL BID 1. Name ofthe CA Firm --_._---------_._-------_._----_ .._------------------- 2. GSTIN -------------------------------------------------- 3. Complete Raipur Address with Telephone No. ----------------------------------------------- ...... _- 4. Details of Experience in undertaking Internal Audit Work of PSUs -_._._--_ ....__ .-..._----_._--------_ ... _-----_._------------.--- (Minimum 3years is mandatory) (proof to be enclosed) 5. Details of Total Number of partners(CAs) (minimum 3 is mandatory) -----------------------------_._-------------------_._ ... 6. Number of paid assistants (Qualified CA/CMA/semi-qualified CA/CMA-Inter) (m inimum 5 no. is mandatory) -- _ 7. Details of working staff (Minimum 5 no. is mandatory Including --- _ One partner) 8. Details of one local Office in Raipur With 5 working staff wh ich shall be Inclusive of one partner (proof to be enclosed) -----_ ..._----_._---------------------------------_._-_.-- 9. No. of years' experience in handling Tax related work& TDS Experience in filing TDS Return in Public Sector Companies (m inimum 2 years in PSUsis ma ndatory );-- _ (proof to be enclosed) 10. We have read the Scope of work (Annexure III,IV and V) and agreeable to execute the work accordingly. 11. Signed copy of the Tender Document, Annexure 1,11,111, IV and V are enclosed herewith. 12. We express our willingness to let HUDCOteam to inspect our office at local to establish the fact that the firm has local office and etc., Signature of Authorized person with seal Name of the Authorized Person with company seal 4 Annexure-II CA Firm to give an Undertaking 1. That none of the partners has any relation with any employee of HUDCO and also none of them has any relationship within the meaning of Section 2(76) of the Companies Act 2013 and also that none of them has any relationship with the Statutory Auditors(M/s Prem Gupta & co.) and also will ensure compliance under Section 184 and 188 of the Companies Act, 2013. 2. Certified that we have not been appointed for carrying out certification/consultancy or such related work of the same Regional Office which will have conflict of interest with the assignment as above as internal auditors of the said Regional Office. 3. The CA Firm and its Partners and Employees will maintain confidentiality. Any information entrusted in the course of interaction/examination of documents of the company (HUDCO) will not be disclosed/revealed to any unauthorized persons. Signature of Authorised person with seal Name of the Authorised Person with company seal 5 ANNEXURE III SCOPE OF WORK Projects: Sanctions · Verifying the receipt of duly filled-in loan applications in prescribed form along with relevant documents and applicable documentation charges. · Verify that the state and individual agency exposure is within the prescribed limit by NHB and HUDCO. · Verify whether the sanction of schemes has been accorded in line with the parameters of financing pattern issued from time to time. Releases · Verify compliance with all the pre-disbursement sanction conditions and required running conditions and monitoring the achievement of required level of expenditure for subsequent releases. · Verify receipt of all the charges as specified in the Loan Agreement. · Monitor the timely receipt of Completion certificate upon project completion · Verify whether default cases are being reviewed and followed up regularly. DMRC & Pre-Audit · Verify whether DMRC meetings are being held regularly and minutes are forwarded to RO as per the guidelines. · Preliminary Audit of accounts of the agency(s) before release of security/ initiating legal action, shall be carried out. Compilation and forwarding of all copies of documents relevant for pre-audit for final clearance by Internal Audit Wing (Head Office). Finance, Accounts, Administration, Real Estate and HR · Verifying monthly trial balance accompanied by audit report backed by verification of books of accounts and verification of all the vouchers · Verification of reconciliation of bank accounts with reference to closing balances as per ledgers. · Verification of actual expenses vis-a-vis budget · Verification that present Salary of employees has been calculated correctly in accordance with 3rd Pay Revision Orders. · Verification that award of AMC to the contractors and empanelment/engagement of service providers have been done as per procedures/guidelines/O.O issued from time to time and all terms of contract are duly complied. · Verify that Estate Maintenance of office building, residential houses, guest houses etc. is being done as per procedures. Proper documents have been kept in lockers and insurance and taxes etc. have been paid timely. · Verify whether Flats have been allotted as per the eligibility. Also, whether HRA for all the occupied flats is being recovered. · Verify that debiting and crediting of leaves is in line with Leave rules and service records are updated timely. Also, salary is being regulated after accounting for leaves availed. 6 HUDeo Niwas · Verification that loan application and its acceptance is in prescribed format and documents submitted are as per guidelines · Verification of appraisal to check the credit worthiness, repaying capacity (individual and rental income), credit appraisal ratios and fixing of repayment period · Verification of title documents and creation of security as per guidelines. · Verification of release of loan after compliance of sanction conditions, site inspection, individual contribution and requisite financial and physical progress · Monitor that requisite number of post-dated cheques have been received as per guideline and verification of conversion of PDCs with National Automated Clearing house(NACH). · Verify that default cases are being reviewed and Default Recovery minutes are sent to HO from time to time. Whether action under section 138 of Negotiable Instrument Act, filing of civil and criminal cases including Sarfaesi Act is being taken. · Verify that penal interest, compound interest are calculated as per practice/procedure/norm and NPA provisioning is being made as per prudential norms · Verify that all insurances have been taken as per guidelines · Verification of books of accounts and vouchers with regard to appropriateness and correctness of heads of accounts · Verification of bank reconciliation statement and monthly cumulative report for quarterly, half-yearly, nine-monthly and annual statements generated through Software package. · Verify whether necessary provisions in HUDCO Niwas loans has been made as per NHB norms · Verify Compliance of provisions of GST Act / Income Tax Act, 1961 · Verification that eligible CLSS subsidy claims/releases to banks by HUoCO (as CNA) and CLSS subsidy received from NHB by HUoCO (as PLI) is as per guidelines. · Verify the Rectification JV/oifferential Entry passed by the RO in the HUoCO Niwas Accounting System (Software package), if any. Public Deposit Scheme · Verification that application forms for deposits and its acceptance are in the prescribed format and documents submitted therein are as per the guidelines. · Verifying that the renewal of deposits received under HUoCO Public Deposit Scheme are as per guidelines of HUDCO Public Deposit Scheme .i.e. the renewal of deposit with retrospective effect is permitted provided fresh application in prescribed form is submitted within a period of one month after the date of maturity of the deposit. · Verify that application forms are duly stamped with respect to applications being received directly or through broker. · Verify whether maturity interest/pre-mature interest on FOR/Loan against FOR has been calculated correctly · Verify that the TDS has been deducted correctly as per the applicable sections and rates under the IT Act,1961 and in case of non-deduction/deduction at lower rates, supporting documents have been received. · Verifying that reminder letters intimating the details of maturity of the deposit has been issued to all the depositors at least 14 days before the date of maturity of deposit · Verify that Tax deducted at source against interest on deposits and brokerage paid is deposlted with Income Tax department by 7th of succeeding month. · Verification of filing quarterly ToS Returns and uploading of the same with the Tax Authorities for every quarter by 15th of the month succeeding the quarter incorporating the details of total taxable interest viz details of Form 15-H /15-G and exemption certificates submitted by the depositors. · Verify that the details of Assessment Year, Rate of ToS are correctly filled up in challans deposited with I.T. department. 7 · Verifying that the notices received from Income Tax Authorities are promptly attended to. · Verification with respect to filing of correction statemenURectification of TDS Returns already filed, if required. · Verify that the PDS Deposit Holder Register is maintained as per the NHB guidelines. · Verifying the PDS accounting heads such as interest on PDS, Interest Approved but Not Due (IABN), brokerage payable/brokerage paid, unclaimed PDS/unclaimed interest on PDS, TDS payable, PDS receipt control interest under various schemes, LA PDS/interest on LA PDS/interest accrued on LA PDS, prior period brokerage, prior period interest expenses, any other deferred expenses, stale cheques, any other accounting head added to the PDS accounting during the financial year. · Verifying bank reconciliation on monthly basis. · Verifying outstanding under the PDS with confirmation to opening balances, deposits during the year, redemption made during the year and closing balance outstanding Scheme-wise, Period-wise and Maturity-wise. · Verifying that complaints of depositors under HUDCO PDS are maintained in the prescribed format and report sent to PDS dept. HO on Quarterly basis. · Verifying the Cash Flow Statement on quarterly basis. · Verifying the interest and brokerage provision at the end of every quarter. · Verification with respect to timely transfer of all the unclaimed deposits and interest amount which are due for transfer to IEPF account in compliance of section 125 of Companies Act 2013. · Verifying that HUDCO PDS Control accounts i.e. GL 322080 and GL 322081 are made NIL at the end of every quarter. · Assuring that all other NHB regulatory guidelines are being duly complied. Income Tax Related · Verify deduction of tax at source from 1. Salary in reference to Savings & Investments, Income from House Properties submitted by employees 2. Medical Bill payments to non-exempted hospitals 3. All other paymentsare in compliance with the provisions and under applicable sections under Income Tax Act, 1961. · Verify timely deposit of TDS amount to the appropriate authorities. · Verification the correctness of the TDS returns before these are filed with the appropriate authorities and timely filing of the above with Tax Authorities. · Verify from Income Tax site that the tax payment has been properly accounted for with Income Tax Authorities and the proper credit for TDS on income is available to HUDCO; · To verify the segregation of all the expenses heads in regard to deductibility I non- deductibility of TDS. · Verification with respect to Filing of correction statemenURectification of TDS Returns already filed, if required · Verify that all the provisions of Income Tax Act, 1961, amendments therein and related circulars issued by Head Office from time to time are complied with. · Verification of Form 3CD as per the format of CBDT at the year-end along with all the annexures required at the time of compilation of Tax Audit Report at Head Office. Goods & Service Tax (GST) Related · Verify the Statements / Ledgers in regard to GST paid by RO on input services, GST collected on output services, GST payable under reverse charge, adjustment of GST on input service as per eligibility and GST payable on output services. Also verify its booking under appropriate GL A/c. · Verify that the invoices have been raised as per applicable provision within the prescribed time under GST Act in respect of output services / services covered under 8 RCM and accounted for in Books of Accounts properly. · Verify that Regional Offices are making monthly payments of GST timely to the appropriate authorities after taking input tax credit as per applicable provision of GST ActJ Rules. · Verifying timely filing of monthly GST returns as applicable with the concerned authorities and verification of reconciliation of GST return with the financial data available in GSTN. · Verify that appropriate and timely action is taken by Regional office in case of show- cause notice / order if any received from the service tax / GST authorities. · Verifying compliance of various notifications/circulars / instructions issued by various authorities/ Head Office in regard to GST from time to time. INO-AS Related · As of now, INO-AS is applicable on banking and financial institutions w.e.f. 01.04.2018, therefore, CA Firm is required to verify that all the provisions of Indian Accounting Standards (INO-AS) applicable to HUOCO along with any instruction issued by HO from time to time in this regard are timely complied with. KYC & PML Certification · Verification of compliance of KYC and PML guidelines issued by NHB and HUOCO from time to time in respect of applications for Project Loans including loans to Government Agencies received at RO, HUDCO Niwas, POS and furnishing the certificate as prescribed by Principal officer / ED (IA), on monthly basis (as per 10M dated 30.01.2018 issued by lA-wing). Incidental matters · Verify that the receipt of Utilization Certificates under CSR is being regularly monitored by the RO. · Verify that all the mortgaged properties under Niwas, Project Loans and Advances to staff have been registered under CERSAI and with appropriate authority. · Preliminary Audit of accounts of the agency(s) before release of security/ initiating legal action shall be carried out. Compilation and forwarding of all copies of documents relevant for pre-audit for final clearance by Internal Audit Wing (Head Office). 9 C hecklist with comments on 0b servations and deviations, Annexure IV I any 51. No. Audit as per scope of work Auditor's Comments - Observation/Deviation with justification PROJECTS 1. Verify whether Loan application has been received in prescribed format as per guidelines along with relevant documents and documentation charges. 2. Whether the proposed scheme is eligible for HUDCO funding as per HUDCO mandate. 3. Whether the agency is eligible to raise loan from HUDCO as _Qerits MoA/Constitution. 4. Verify whether the scheme is being processed within the sanctioning powers of the Competent Authority. 5. Verify whether sanction of schemes has been accorded in line with the financirl_gpattern issued from time to time. 6. Verify whether the state and individual agency exposure is within the limit prescribed by NHB and HUDCO. 7. Verify compliance with all the pre-disbursement sanction conditions and required running conditions and monitoring the achievement of required level of expenditure for second and subsequent releases. 8. Verify receipt of all the charges as specified in the Loan Agreement 9. Verify that loan releases to the borrowing agency - Date of release amount and rate of interest as per applicable Financing Pattern 10. Verify that Loan Releases in Consortium funded project _ date of release, amount and Rate of interest as per terms of Common Loan agreement (CLA)!lnter Credit Arrangement (ICA)!consortium partners for verification of interest charged by consortium partners! Hudco guidelines. 11. Verify that the receipt/ recovery of application fee! front-end- fee! Research and Development (R&D) , as applicable in reference to the loan agreement and financing pattern and checking of accounting entries with respect to the relevant voucher passed 12. Verify the receipt of applicable GST on the receipts indicated at (11) above. 13. Recovery of deferment charges and prepayment charges, Commitment charges, conversion charges, as per guidelines!norms, as and when applicable and applicable GST thereon. 14. Repayments with respect to amount received, actual date of receipUcredit of payments received from agency based on the bank statement. 15. Verify the project property under project loan is registered with appro_Qriate authority. 16. Verify that valuation report of mortgaged property have been obtained as and when required and in terms of guidelines from em panelled valuers and duly accepted by competent authority. 10 17. Verify that project property mortgaged to HUDCO is insured as per LMC/Guidelines. 18. Accounting of Corporate Debt restructuring and waiver implemented during the year. 19. Accounting of Restructuring /DefermentiRe-schedulement and waiver implemented during the year. 20. Implementation of the revised interest rate on account of revision in financing pattern and automatic reset falling due on completion of specified period as per financing pattern. 21. Recovery of charges/fees as per terms of CLAlICA or any other agreement in case of consortium funded projects and checking of accounting entries. 22. To review the status of receipt of Balance Confirmation certificates from the borrowing Agencies at the quarter end, which are not in litigation and also review the reconciliations or the reasons for the difference in the Balance Confirmation certificates carried out by the Department. 23. To check the receipt of Utilization Certificates from Borrowing Agencies in respect of Grant released by Hudco. 24. To check the calculation of interest & penal levies on sample basis (specifying the scheme) covering each category and regional office. 25. To check appropriations of payment received from agency on sample basis (specifying the scheme) covering each category and regional office. 26. To check implementation of defermentlamendment in the loan card/ new loan card/ loan Ledger with respect to OTS/ DRP/ Decree of DRT,DRAT/ C DR/Restructu ring/Defermentlresched ulement/C urtai Iment of loan based on the amendment letter issued by the Regional Office and its accounting entries. 27. To check loan recall notice implemented in the loan card based on the loan recall notice issued by regional office during the period and its accounting entries. 28. Verify the classification of assets/loan (Housing and Non Housing) in respect of Project loans sanctioned during financial year. 29. Monitor the timely receipt of Progress Reports, during the course of project implementation and Completion certificate upon project completion 30. Verify whether default cases are being reviewed and followed up regularly. 31. Verify whether DMRC meetings are held regularly and minutes are forwarded by RO to Hqrs. as per guidelines. 32. Preliminary Audit of accounts of the agency(s) before release of security/ initiating legal action, shall be carried out. Compilation and forwarding of all copies of documents relevant for pre-audit for final clearance by Internal Audit Wing (Head Office). FINANCE 1. Verification of salary vouchers with regard to appropriateness of heads of accounts 2 Verify whether employees tax calculation has been done as per applicable provisions of IT Act and all exemptions granted are under relevant sections of IT Act backed with 11 duly supported relevant documents for claiming such exemptions 3. Verify that the present pay has been calculated correctly in accordance with the 3rd _Q~ revision order issued. 4. Verify that TAIDA is being granted as per HUDCO norms and rules 5. Verification of staff loan advances and all other advances and whether any advance is overdue and not settled within the scheduled time 6. Verification that all income heads and expense heads have been checked with regard to deductible/non-deductible TDS and timely remittances and there are no arrears/late deposits reported. 7. Physical verification of assets with the books is reconciled at the end of the financial.Y_ear ACCOUNTS 1. Verification of all bank and journal vouchers. 2. Verification of monthly trial balance accompanied by audit re_port 3. Verification of maintenance of bank book, journal books and other subsidiary records 4. Verification of actual expenses Vs. budget allocation 5. Verification of opening and closure of bank accounts as per awoval of competent authori!y- 6. Verification of reconciliation of bank accounts with reference to closinq balance of bank accounts appearing in monthly trial balance 7. Verification of head office control account with reference to remittances received from HO and disbursement made at Regional Office 8. Verification of closing balances as per ledger appearing in the trial balance at the close of the financial year (opening balance + cumulative of net of monthly balancesl 9. Verify whether requirement of fund has been assessed before requisitioning from the head office and minimum balances are maintained as per the direction of the head office ADMINSITRATION & REAL ESTATE 1. HUDCO's procurement guidelines are being complied for procurement of items and services 2. All the purchases are made as per the delegation of power and within specified budgetary limits 3. Award of Annual Maintenance Contracts and empanelment/engagement of service providers and payments therein are being regulated as per the HUDCO guidelines and Purchase Manual and in compliance with the tender document. The contractor for AMC has been selected in terms of the eligibility criteria and financial bid embedded in the tender document. The tender document has been conceived as per the Government of India regulations, HUDCO guidelines and other regulatory authorities. 4. All the break-up of payments has been made as per relevant head in the contract document and verify with the supporting documents that the contractor has made statuto~~ments 12 like PF, ESI etc. within schedule time to the respective authorities and the net payment released to his staff is also be verified. Also, other terms of contracts have been complied. 5. Flats have been allotted as per the eligibility and whether HRA for all occupied flats is being recovered. 6. Maintenance and Insurance of all office assets. Proper mechanism of insurance coverage of office asset is in place. Insurance _f)olicies are renewed and taxes are _Qaidtimely. 7. Disposal of obsolete assets and weeding out of old records as per the guidelines issued from time to time. There is a system to identify unused/damaged assets with proper approval and weedil"!9_ _guidelines. out of old records asj>_er 8. Digitization of records and backup of data to be maintained as per guidelines. HUMAN RESOURCE 1. Verify that the loan advances granted to the employees are as per eligibility and secured by mortgage of property/hypothecation of vehicles and also the same has valid insurance. 2. Whether original documents are kept in safe custody. 3. Proper record of credit/debit of leaves in line with leave rules and proper updated maintenance of service book. HUDCO NIWAS l. Verification of duly filled in loan application and acceptance is in prescribed format and documents submitted are as per _guidelines 2. Verification of appraisal to be done to check credit worthiness including CIBIL, repaying capacity (individual and rental income), credit appraisal ratios and fixing of repayment period 3. Verification of title documents and creation & registration of security as per guidelines. 4. Verification of release of loan after compliance of sanction conditions, site inspection, individual contribution and requisite financial and p~sical progress. 5. Verification that requisite number of post-dated cheques have been received as per guideline and verification of conversion of PDCs with NACH 6. Verification that default cases are being reviewed and Default recovery minutes are sent to HO from time to time. Whether action under 138 of Negotiable Instrument Act, filing of civil and criminal cases including Sarfaesi Act is being taken. 7. Verification that penal interest, compound interest calculated as per practice/procedure/norm and NPA provisioning is being made as perj>_rudentialnorms 8. Verification that all insurances have been taken as per guidelines 9. Verification of books of accounts and vouchers in regard to C!{JFro_Qriateness and correctness of heads of accounts 10. Verification of bank reconciliation and monthly cumulative report for quarterly, half-yearly, nine-monthly and annual statement generated through Software j>_acka_ge 11. Verify whether necessa__r:y_ provisions in HUDCO Niwas loan 13 has been made as per NHB norms 12. Verify whether correct entries have been passed for interest due and interest de-recognition. 13. Verifying Compliance of requirements as per GST Act / Income Tax Act. 14. Verification that eligible CLSS subsidy claims/releases to banks by HUDCO (as CAN) and CLSS subsidy received from NHB by HUDCO _(asPLD is as_Q_er _g_uidelines 15. Verify the Rectification JV/Differential Entry passed by the RO in the Hudco Niwas Accounting System (Software _Q_ackClQ~, if al}Y_ PUBLIC DEPOSIT SCHEME 1. Verification that application forms for deposits and its acceptance are in prescribed format and documents submitted are as_Qer _g_uidelines. 2. Verifying that the renewal of deposits received under Hudco Public Deposit Scheme are as per guidelines of HUDCO Public Deposit Scheme .i.e. the renewal of deposit with retrospective effect is permitted provided fresh application in prescribed form is submitted within a period of one month after the date of maturity of the de_Qosit. 3. Application form are duly stamped with respect to application being received direct or throu_ghbroker 4. Verify whether maturity interest/pre-mature interest on FOR/Loan against FOR has been calculated correctly. 5. Verify that the TDS has been deducted correctly as per the applicable sections and rates under the IT Act,1961 and in case of non-deduction/deduction at lower rates, supporting documents have been submitted. 6. Verifying that reminder letters intimating the details of maturity of the deposit has been issued to all the depositors at least 14 days before the date of maturity of deposit. 7. Tax deducted at source against interest on deposits and brokerage paid is deposited with Income Tax department by 7th of succeeding month. 8. Verification of filing quarterly TDS Returns and uploading of the same with the Tax Authorities for every quarter by 15th of the month succeeding the quarter incorporating the details of total taxable interest viz details of Form 15-H /15-G and exemption certificates submitted by the d~ositors. 9. The details of Assessment Yea, rate of TDS are correctly filled u_Q in challans de_Q_ositedwith I.T. de_Qartment. 10. Verifying that notices received from Income Tax Authorities are attended topromptly_. 11. Verification with respect to filing of correction statement/Rectification of TDS Returns already filed, if required. 12. Verify that the PDS Deposit Holder Register is maintained as_perthe NHB_guidelines 13. Verifying the PDS accounting heads such as interest on PDS, Interest Accrued but Not Due (IABN), brokerage payable/brokerage paid, unclaimed PDS/unclaimed interest on PDS, TDS payable, PDS receipt control interest under various schemes, LA PDS/interest on LA PDS/interest accrued on LA PDS, _Qfior_Q_eriod brokerage, prior period 14 interest expenses, any other deferred expenses, stale cheques, any other accounting head added to the PDS accountino durino the financial year. 14. Verifying bank reconciliation on monthly basis. 15. Verifying outstanding under the PDS with confirmation to opening balances, deposits during the year, redemption made during the year and closing balance outstanding Scheme-wise, Period-wise and Maturity-wise. 16. Verifying that complaints of depositors under HUDCO PDS are maintained in the prescribed format and report sent to PDS dept HO on Quarterly basis. 17. Verifying the Cash Flow Statement on quarterly basis. 18. Verifying the interest and brokerage provision at the end of every quarter. 19. Verification with respect to timely transfer of all the unclaimed deposits and interest amount which are due for transfer to IEPF account in compliance of section 125 of Companies Act 2013. 20. Verifying that HUDCO PDS Control accounts i.e. GL 322080 and GL 322081 are made NIL at the end of every quarter. 21. All the other NHB regulatory guidelines have been duly complied. INCOME TAX 1. Verify deduction of tax at source from salary in reference to Savings & Investments, Income from House Properties submitted by employees, Medical Bill payments and all other payments in compliance of the provisions of the Income Tax Act. Verify timely payment of TDS amount to appropriate authorities. Verification the correctness of the TDS returns before these are filed with the appropriate authorities and timely filing of the same. Verify from Income Tax site that the tax payment has been properly accounted for with Income Tax authorities and the proper credit for TDS on income is available to HUDCO 2. To verify the segregation of all the expenses heads in regard to deductibility I non-deductibility of TDS. 3. Verification with respect to Filing of correction statement! Rectification of TDS Returns already filed, if required 4. Verification that all the provisions of Income Tax Act, amendments therein and related circulars issued by Head Office are complied with. 5. Verification of Form 3CD as per format of CBDT at the year- end along with all the annexure required at the time of compilation of Tax Audit Report at Head Office. GOODS & SERVICE TAX (GST) 1. Verify the Statement I Ledgers in regard to GST paid by RO on input services and goods, GST collected on output services, GST payable under reverse charge, adjustment of GST on input service as per eligibility and GST payable on output services. Also Verify its booking under appropriate GL A/c. 2. Verify that the invoices have been raised as per applicable provision under GST in respect of output services I services covered under RCM and accounted for in books of Accounts properly. 15 3. Verify that Regional Offices are making monthly payments of GST timely to appropriate authorities after taking input tax credit as per applicable provision of GST Act/Rules. 4. Verifying timely filing of monthly GST returns as applicable with the concerned authorities and verification of reconciliation of GST return with the financial data available in GSTN. 5. Verify that appropriate and timely action is taken by Regional office in case of show-cause notice / order if any received from the service tax / GST authorities. 6. Verifying compliance of various notifications/circulars / instructions issued by various authorities/ Head Office in re_gard to GST from time to time. IND-AS RELATED 1. As IND-AS is applicable on banking and financial institutions w.e.f. 01.04.2018, therefore, CA Firm to Verify that all the applicable provisions of Indian Accounting Standards (IND- AS) applicable to HUDCO as per instructions issued by Head Office from time to time are complied with. KYC & PML Certification in respect of Project Loans 1. Verification of compliance of KYC and PML guidelines issued by NHB and HUDCO from time to time in respect of applications for Project Loans including loans to Government Agencies, PDS and HUDCO Niwas and furnishing the certificate as prescribed by Principal officer/ ED (IA), on monthly basis (as per 10M dated 30.01.2018 issued ~ lA-wing). Incidental Matters 1. Verify that the receipt of Utilization Certificate under CSR is bei'!9_r~gular!y' monitored ~ RO. 2. Verify that all mortgaged properties under Niwas, Project loans and advances to staff have been registered under CERSAI 3. Verify that all activities relating to sanctioning of projects, administration, HR etc. carried out in line with Delegation of Powers. 16 ANNEXURE V Specimen format of the report to be followed The Internal Auditor's report should contain a clear written expression of significant observations, suggestions/ recommendation based on the policies, process, controls and transaction policies taken as a whole. The internal audit is to be conducted in line with the standards and guidance notes on internal audit issued by the Institute of Chartered Accountants of India, HUDCOs' guidelines, prudential norms issued from time to time besides applicable guidelines issued by various authorities and provisions of the applicable Acts. However, Chartered Accountants Firm may suggest any more checks, as may be required. The Auditor's report should contain the following elements ordinarily within the following layout: Part-l a) Title; b) Addressee c) Firm registration number alongwith supporting documents d) Coverage (Period)* e) Duration of audit f) Composition of Audit Team** g) Opening or introductory paragraph (including the work handle by the auditee unit) h) Organizational structure of Auditee unit i) Scope of audit j) Checklist given in Annexure III to be mandatory filled-up k) Records reviewed and sample size in case of test check (100% verification in case the number of vouchers in each category(as given in the description of work in the eligibility criteria), is less than 100 in a month and sample size of 50% in case the number is more than 200/250 per month) I) Non production of records, if any m) Executive Summary of the audit observations * The coverage period shall include the coverage of balance period of the previous financial year (2017-18) not covered by Internal Audit and payment shall be paid on proportionate basis and the Report shall be submitted alongwith the first quarter Audit Report. The Audit team will consist minimum of one Chartered Accountant and one paid assistant {qualified (CAlCMA)/semi qualified(CA/CMA- inter)}. Part-II a) Performance review of area(s)/business of the Auditee unit b) Significant audit observation - requires immediate action/attention c) Audit observations (Audit Paras) d) Recommendations e) Annexure/exhibits to the Report 17 Part-III a) Review of outstanding paras from earlier reports and its compliance status as on date b) Concluding paragraph Part-IV a) The Audit report shall be submitted latest by th of the ensuing month of the completed quarter and the scanned copy of the report shall be submitted to the Internal Audit Wing. The hard copy alongwith relevant annexures shall be submitted thereafter. b) The audit report will be submitted after discussion of the all the audit observations with the respective Regional Chief and a certificate to this effect is to be enclosed. c) The internal audit is to be conducted with the highest standard of professtonal ethical competence and integrity. d) CA firm shall not disclose to any person the confidential information relating to the assignment or HUDCO's business or operations without prior permission of ED(IA), Internal Audit Department, Head Office, New Delhi. e) The pre-audit cases pertaining to private sector/consortium and one time agency will be sent to Internal Audit Head Office, for further due diligence. f) In case of any dispute between HUDCO and the CA Firm regarding Internal Audit assignment given to the CA Firm at Regional Office, the decision of the CMD, HUDCO shall be final and binding on all the parties. *** 18 Annexure-VI FINANCIAL BID The submission of fees should be as follows: SI. Details Yearly Maximum Yearly Feesquote No. Ceiling (Excluding GST)(Rs.) (Excluding GST)(Rs.) I. Fixed Fees 1 Imprest Trial Balance & Project Loan 120000 2 Niwas(Retail Finance Unit) 20000 3 Public Deposit Scheme 14000 4 KYC& PML for project, PDS&Niwas 3600 5 Incidental matters and other 3600 miscellaneous work Fixed Fees Total 161200 (Rupees in words II. Variable Fees 6 For Audit and verification of sanction Rs.100/- per case with a ceiling of project loans of Rs.10000/- per annum 7 For audit and verification of releases Rs.100/- per case with a ceiling of project loans of Rs.10000/- per annum 8 For audit and verification of HUDCO Rs.75/- per case with a ceiling Niwas sanction and release of Rs.10000/- per annum 9 For audit and verification of PDScases Rs.50/- per case with a ceiling of Rs.I0000/- per annum 1. Feesmust be quoted in each column. 2. Rates may be quoted excluding of GST. KYC & PML- Know Your Customer norms & Prevention of Money Laundering Act 3.The Selection of L1 would be on the basis of the total figure quoted in words SI.No I. Fixed Fees. Signatu re of Authorized person with seal Name of the Authorized Person with company seal 19