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Haryana Power Generation Corporation Limited,Panchkula, Haryana
July, 09th 2019
        Haryana Power Generation Corporation Limited
               (A Government of Haryana Undertaking)
                           Urja Bhawan,
                        Sector-6, Panchkula
                         Haryana-134109




                        E- Tender Documents

                                 For

NOTICE INVITING TENDER FOR SHORTLISTING AND ENGAGEMENT
OF FIRMS OF CHARTERED ACCOUNTANTS/ COST ACCOUNTANTS
FOR CONDUCTING INTERNAL AUDIT IN HARYANA POWER
GENERATION CORPORATION LTD , FOR THE FINANCIAL YEARS 2019-
20, 2020-21 AND 2021-22


Ref No.:COA/IA/NIT/20-21/1                Dated: 3.7.2019




          Last Date of Submission: 01.8.2019 UPTO 15.00 Hours




                                  1
                HARYANA POWER GENERATION CORPORATION LIMITED
                         (A Govt. of Haryana Undertaking)

NOTICE INVITING TENDER FOR SHORTLISTING AND ENGAGEMENT OF FIRMS OF
CHARTERED ACCOUNTANTS/ COST ACCOUNTANTS FOR CONDUCTING INTERNAL AUDIT
IN HARYANA POWER GENERATION CORPORATION LTD , FOR THE FINANCIAL YEARS 2019-
20, 2020-21 AND 2021-22
No. COA/IA/NIT/20-21/1                 Dated 3.7.2019



                                   NOTICE INVITING TENDER

Haryana Power Generation Corporation Ltd., a Government of Haryana Undertaking, invites
bids from reputed Indian Chartered Accountant/ Indian Cost Accountant Firms for conducting
Internal Audit for F.Y. 2019-20, 2020-21 AND 2021-22

The format of application along with annexures on areas and extent of coverage, reporting
requirements, terms of reference, list of units and locations, selection criteria etc. can be
downloaded from website www.hpgcl.org.in. Any updates to the NIT shall be hosted on
our website from time to time. The interested firms are requested to ensure that all updates
to the NIT are strictly considered while submitting the bids.

Firms may submit their applications online with EMD of Rs. 9000/- latest by 01.8.2019
up to 15.00 hrs. EMD of successful bidders shall be converted into security deposit which shall be
released on faithful completion of the work. EMD of the unsuccessful bidders shall be returned
without any interest immediately after awarding the work to the successful bidder/s.

Validity of the bids shall be up to 120 days from the date of opening of financial bid.

Shortlisted firms shall remain on the panel of the HPGCL for a period of three years from 2019-20.




                                                   2
                               TABLE OF CONTENTS


Sr. No.   Description                                                  Page No.

 1.       NIT No. COA/IA/NIT/20-21/1 / Dated 3.7.2019                        1

 2.       Notice inviting e-Tender Dated                                     2

 3.       Information regarding online payment of Tender Documents          4-7
          E-service charges and EMD.
 4.       Format of Application                                            8-10

 5.       Annexure -- A -- List of Locations to be audited                  11

 6.       Annexure -- B -- Major Areas to be covered                        12

 7.       Annexure -- C -- Area and Extent of coverage                    13-14

 8.       Annexure -- D -- Reporting requirements                         15-16

 9.       Annexure -- E-- Terms of Reference of Internal Audit            17-19

 10.      Annexure -- F --General Instructions to Audit Firms and           20
          documents list
 11.      Annexure -- G-- Selection Criteria for short listing and          21
          engaging of Internal Audit firms
 12.      Annexure -- H--Rate Quoting Sheet and financial evaluation        22
          criteria




                                           3
INFORMATION REGARDING ONLINE PAYMENT OF TENDER DOCUMENT , E
SERVICE AND EMD FEES.

The Bidders can download the tender documents from the Portal: https://etenders.hry.nic.in.

The Bidders shall have to pay for the Tender documents, EMD Fees & eService Fee online
by using the service of secure electronic payment gateway. The secure electronic payments
gateway is an online interface between contractors and online payment authorization
networks. The Payment for Tender Document Fee and eService Fee is amounting to Rs.
2180/- (Rs. 1180 cost of tender documents             + 1000/- e-service charges )   and EMD
amounting to Rs. 9,000/-           (Rs. Nine thousand only) can be made by              eligible
bidders/contractors online.+

NOTE: If the tenders are cancelled or recalled on any grounds, the tender document fees &
e-service fee will not be refunded to the agency.

The Tenders can submit their tender documents (Online) as per the dates mentioned in the
key dates:-
                           Key Dates
Sr.                                                                Start date Expiry date and
         Department Stage                Tenderer's Stage
No.                                                                 and time        time
                                                                   03.7.2019
                                      Downloading of Tender                     01.8.2019
 1              ------              Documents, Bid Preparation
                                                                     1200
                                         & submissions                          15.00 Hours
                                                                     Hours
                                                                   05.8.2019
 2    Technical Opening (Part-I)                  -
                                                                     1530
                                                                     Hours
        Opening of Price Bid
                                                                    Will be intimated through
 3
                                                                               email
               (Part-II)




                                              4
        INSTRUCTION TO BIDDER ON ELECTRONIC TENDERING SYSTEM

       These conditions will over-rule the conditions stated in the tender documents,
       wherever relevant and applicable.

1.     Registration of bidders on e-Procurement Portal:-

All the bidders intending to participate in the tenders processed online are required to get
registered on the centralized e-Procurement Portal i.e. https://etenders.hry.nic.in.

        Please visit the website for more details.

2.     Obtaining a Digital Certificate:

       2.1     The Bids submitted online should be encrypted and signed electronically with
               a Digital Certificate to establish the identity of the bidder bidding online.
               These Digital Certificates are issued by an Approved Certifying Authority, by
               the Controller of Certifying Authorities, Government of India.

       2.2     The bidders may obtain Class-II or III digital signature certificate from any
               Certifying Authority or Sub-certifying Authority authorized by the Controller of
               Certifying Authorities.


       2.3     Bid for a particular tender must be submitted online using the digital
               certificate   (Encryption & Signing), which is used to encrypt the data and
               sign the hash during the stage of bid preparation & hash submission. In case,
               during the process of a particular tender, the user loses his digital certificate
               (due to virus attack, hardware problem, operating system or any other
               problem) he will not be able to submit the bid online. Hence, the users are
               advised to keep a backup of the certificate and also keep the copies at safe
               place under proper security (for its use in case of emergencies).

       2.4     If the digital certificate issued to the authorized user of a firm is used for
               signing and submitting a bid, it will be considered equivalent to a no-objection
               certificate/power of attorney /lawful authorization to that User. The firm has to
               authorize a specific individual through an authorization certificate to use the
               digital certificate as per Indian Information Technology Act 2000. Unless the
               certificates are revoked, it will be assumed to represent adequate authority of
               the user to bid on behalf of the firm in the department tenders as per
               Information Technology Act 2000. The digital signature of this authorized
               user will be binding on the firm.

       2.5     In case of any change in the authorization, it shall be the responsibility of
               management / partners of the firm to inform the about the change and to
               obtain the digital signatures of the new person / user on behalf of the firm /
               company. The procedure for application of a digital certificate however will
               remain the same for the new user.



                                               5
       2.6    The same procedure holds true for the authorized users in a private/Public
              limited company. In this case, the authorization certificate will have to be
              signed by the directors of the company.

       2.7    In case of sole prop. Firm there is no need of authorized representative as
              prop. Is owner of the firm and competent to sign.

3      Opening of an Electronic Payment Account:

        Tender document can be downloaded online. Bidders are required to pay the tender
documents fees online using the electronic payments gateway service. For online payments
guidelines, please refer to the Home page of the e-tendering Portal
https://etenders.hry.nic.in.

4      Online Viewing of Detailed Notice Inviting Tenders:

        The bidders can view the detailed N.I.T and the time schedule (Key Dates) for all the
tenders floated through the single portal e-Procurement system on the Home Page at
https://etenders.hry.nic.in.

5      Download of Tender Documents:

                        The tender documents can be downloaded from the e-Procurement
portal https://etenders.hry.nic.in.

6    Key Dates:

       The bidders are strictly advised to follow dates and times as indicated in the online
       Notice Inviting Tenders. The date and time shall be binding on all bidders. All online
       activities are time tracked and the system enforces time locks that ensure that no
       activity or transaction can take place outside the start and end dates and the time of
       the stage as defined in the online Notice Inviting Tenders.

7      Bid Preparation (Technical & Financial) Online Payment of Tender Document
       Fee, eService fee, EMD fees and Submission of Bid Seal (Hash) of online Bids:

       7.1    The online payment for Tender document fee, e-Service Fee & EMD can be
              done using the secure electronic payment gateway. The Payment for Tender
              Document Fee and eService Fee can be made by eligible bidders/
              contractors online.

       7.2    The bidders shall upload their technical offer containing documents,
              qualifying criteria, technical specification, schedule of deliveries, and all other
              terms and conditions except the rates (price bid).

              The bidders shall quote the prices in price bid format.

       7.3    Submission of bids will be preceded by submission of the digitally signed&
              sealed bid (Hash) as stated in the time schedule (Key Dates) of the Tender.




                                               6
NOTE:-

(A) If bidder fails to complete the Online Bid Submission stage on the
    stipulated date and time. His/hers bid will be considered as bid not
    submitted, and hence not appear during tender opening stage.

(B) Bidders participating in online tenders shall check the validity of his/her
    Digital Signature Certificate before participating in the online Tenders at the
    portal https://etenders.hry.nic.in.

(C)   For help manual please refer to the `Home Page' of the e-Procurement
website at https://etenders.hry.nic.in..




                                     7
                                FORMAT OF APPLICATION

1. Name of the Firm:

2. Registration No. of the Firm :

3. Date of Registration of the Firm:

4. Details of Head Office & Branch Office(s):


Head Office:

 Address               Date of Establishment        Contact No./Fax      E-mail




Branch Office 1:

 Address               Date of Establishment        Contact No./Fax      E-mail




Branch Office 2:

 Address               Date of Establishment        Contact No./Fax      E-mail




5.     Details of Partners in the Firm/Limited Liability Partnership:

Sr. Name of the          Membership Membership           CISA/DISA/        Dateof joining
No. Partner              No.        Status ACA/          ISA or            the firm as
                                    FCA/ACMA/            equivalent        partner
                                    FCMA                 qualification

1.
2.
3.
4.

6.      Details of Qualified Assistants:

Sr. Name of the          Membership        Membership     CISA/DISA/        Date of joining
No. Assistant            No.               Status ACA/    ISA or            the firm as
                                           FCA/ACMA/      equivalent        Assistant
                                           FCMA           qualification

1.
2.
3.
4.

                                                8
7.    Details of Semi-Qualified Assistants:

Sr. Name of the Assistant      Whether Intermediate/IPCC Date of Joining the firm as
No.                            completed                 Semi-Qualified Assistant

1.
2.
3.


8.    Details of Technical Experts:

Sr. Name of the Expert     Engineering field in        Date of Joining the firm
No.                        which qualified

1.
2.
3.
4.


9.    Details of Experience of the firm in Power Sector:

Sr. Name of the                Year of Audit         Type of Audit -- whether
No. Company/Unit                                     Financial Audit/Cost Audit /
                                                     Internal Audit
1.
2.
3.
4.


10.   Details of Experience in PSUs other than Power Sector:

Sr. Name of the                Year of Audit          Type of Audit -- whether
No. Company/Unit                                     Financial Audit/Cost Audit /
                                                     Internal Audit
1.
2.
3.
4.


11.   Details of Experience in other assignments:

 Sr. Name of the               Year of Audit         Type of Audit -- whether Physical
 No. Company/Unit                                    verification of Fixed Assets/
 1.                                                  Stores
 2.
 3.




                                              9
12.    Income Tax/ PAN No. of the Firm:

13.    GST No.:

14.    Bank details:

 1.    Bank Name, Address and Telephone No.
 2.    Branch Name, Address & Code
 3.    Bank Account Number with style of
       account, Saving/ Current
 4.    IFSC Code No. of the Bank
 5.    A cancelled cheque of the said Bank


15.   It is confirmed that all the requirements as per Annexure-   to the NIT documents
have been complied with.

16.     We confirm that we have not claimed any deviation from the specified terms &
conditions, of the NIT documents. A copy of complete NIT document duly signed and sealed
on all pages as a token of acceptance of all terms & conditions is attached.








Signature of authorized representative/ competent authority with Name & Seal of the Audit
Firm




                                             10
                                                                         ANNEXURE- A

                        LIST OF LOCATIONS TO BE AUDITED

Consequent upon the restructuring of erstwhile HSEB, Haryana Power Generation
Corporation Limited (HPGCL) came into existence on 14th August 1998 with the objective of
generating power from State Owned Sources and supplying the same to Discoms i.e.
UHBVNL and DHBVNL). The Company on the date of formation had a total generation
capacity of 863 MW which has now been gone up to 2782.70 MW.

The present list of Audit locations of HPGCL (Corporate Office and Power Stations along
with their installed capacity) is given below:

Sr.   Location                             Installed Capacity       Commissioning Date
No.
1.    Corporate Office Panchkula
2.    Panipat Thermal Power Station,
      Panipat                                   Unit No-5: 210 MW           28/03/1989
                                                Unit No-6: 210 MW           31/03/2001
                                                Unit No-7: 250 MW           28/09/2004
                                                Unit No-8: 250 MW           28/01/2005
3.    RGTPP, Hisar                              Unit No-1: 600 MW           24/08/2010
                                                Unit No-2: 600 MW           01/03/2011
4.    DCRTPP,Yamuna Nagar                       Unit No-1: 300 MW           14/04/2008
                                                Unit No-2: 300 MW           24/06/2008
      Western Yamuna Canal Hydro                   Power House A
      Project (Yamuna Nagar)                      Unit No-1: 8 MW           29/05/1986
                                                  Unit No-2: 8 MW           13/06/1986
                                                   Power House B
                                                  Unit No-1: 8 MW           15/05/1987
                                                  Unit No-2: 8 MW           01/06/1987
                                                   Power House C
                                                  Unit No-1: 8 MW           27/03/1989
                                                  Unit No-2: 8 MW           18/04/1989
                                                   Power House D
                                                Unit No-1: 7.2 MW           16/04/2004
                                                Unit No-2: 7.2 MW           12/05/2004
      Micro Hydro Power Station, Kakroi                   0.30 MW
      Total                                           2782.70 MW




                                           11
                                                                           ANNEXURE - B

    MAJOR AREAS TO BE COVERED DURING THE INTERNAL AUDIT OF HEAD
                 OFFICE/PROJECT OFFICES OF HPGCL

 I.      Works including O&M Contracts (Pre-award and Execution)
 II.     Procurement (Pre-award and Execution)
 III.    Stores
 IV.     Colony
 V.      Petrol Pump
 VI.     Vehicles Maintenance
 VII.    Guest House/ Field Hostel/Shops
 VIII.   School
 IX.     Dispensary/Health Center
 X.      Operations
         i) Thermal Energy ­ Fuel: Coal, Liquid fuel & Gas
         ii) Hydel Energy
         iii) Solar Energy
 XI.     Books of Accounts
 XII.    Commercial Accounts
 XIII.   Establishment Accounts
 XIV.    Human Resource Department
 XV.     Loan Accounts
 XVI.    Invoicing and Debtors for sale of energy
 XVII. Review of implementation of System and Procedures of the Corporation.
 XVIII. Land & Building
 XIX     To review budgetary control.
 XX      Reconciliation of inter unit transactions.
 XXI     Review of compliance of statutory obligations under various statutes.
 XXII    Any other area decided by the Controller of Accounts
Note:
    1. While auditing the above areas the contents of the internal audit manual of
       HPGCL and the specific instructions given by the office of Controller of Accounts
       at the time of appointment or during the currency of the audit should be strictly
       followed.
    2. The list of the above areas is illustrative only and not exhaustive. Special
       emphasis should be given to the key areas with a view to prudent and proprietary
       checks such as:
        Guidelines issued by Corporate Finance from time to time have been complied
             with.
        Physical verification of fixed assets and inventory is being carried out as per
             the system laid down in this regard. Further to report that the adjustments for
             excess and shortage are being carried out in the books in the same year.
        Outstanding Internal audit or any other audit observations of the previous
             years have been complied with.
        TDS and other statutory deduction are being made and deposited with the
             appropriate authority in all cases as per the relevant statute.



                                            12
                                                                        ANNEXURE-C


                             EXTENT OF COVERAGE OF AUDIT
Sr.                                  Area                              Coverage in each
No.                                                                    phase

I **    WORKS INCL. O&M CONTRACTS
        (Pre-award and execution)
        i) W.Os with value more than Rs.20 Lakh                        100%
        ii) W.Os with value from Rs.10 lakh to Rs.20 Lakh              50%
        iii) W.Os with value less than Rs.10 lakh                      25%

II **   PROCUREMENT
        (Pre-award and execution)
        i) P.Os with value more than Rs.20 Lakh                        100%
        ii) P.Os with value from Rs.10 lakh to Rs.20 Lakh              50%
        iii) P.Os with value less than Rs.10 lakh                      25%

III     STORES
        i) Documentation and procedures                                2 Months
        ii) Claims                                                     50%
        iii) Store Accounts                                            50%

IV      OPERATIONS                                                     3 Months
        A. Thermal Energy (Coal, Liquid Fuels, Gas)
           i) Operational Data Analysis
           ii) Review of Fuel Accounting records for        Receipt,
               Consumption and Stock
           iii) Verification of Fuel Price Adjustment
           iv) Review of Monthly Operating Results

        B. Hydel Energy
        C. Solar Energy
        D. Coal Mining Activities

V       BOOKS OF ACCOUNTS, FUNDS AND BANKING
        ARRANGEMENTS
        Books of Accounts                                              50% GL / 25% SL
        i) Review of GL and Sub-Ledgers
        ii) Voucher Verification                                       Apr, Sep, Nov, Mar
            Bank Payment Documents (for 3 complete months)             and any one(1) more
            Documents for Bank Receipt (----------Do-------------)     month
            Documents for Adjustments (-----------Do-------------)
        iii) Review of Employee Compensation / Accounts                25%
             Pay Bill Review                                           50%
             Other Employee Benefits                                   50%
                                                                       To Comment
        Funds and Banking Arrangements (including BRS)

        Maintenance of Cost Accounting Records
VI      INVOICING AND DEBTORS FOR SALE OF ENERGY                       100%




                                            13
VII    PERSONNEL AND ADMINISTRATION
       A. Employee Related
       i) Service Book                                                25%
       ii) Employee Benefits                                          25%
       B. Other Administrative Matters
           Land Mutation / Adverse Possession issues                  50%
           Unauthorized occupation of COA                             50%

VIII   PROJECT / STATION / OFFICE related FACILITIES (viz.,
       Colony, Shops, Petrol Pump, Guest House / Transit Camp /
       Field Hostel, School, Dispensary / Health Centre and Vehicle
       Maintenance)                                                   100%
       i) Proprietary Aspects                                         100%
       ii) Accounts
IX     LOANS
       i) Domestic Loans                                              100%
       ii) Foreign Loans                                              100%

X      BONDS and DEBENTURES                                           Test Check




                                         14
                                                                                    ANNEXURE-D

                                 REPORTING REQUIREMENTS

On completion of the Audit of the respective Audit Unit of each phase, the following steps
should be followed before finalization of the report and the partner of the Firm should meet and
discuss the audit observations.

    (i)     The preliminary audit observations shall first be discussed with the FA&CAO of the
            Audit Unit along with the Chief Engineer.
    (ii)    Pursuant to the above discussions, the preliminary Audit observations of the
            respective Audit Unit shall be prepared.
    (iii)   The salient audit observations of the respective preliminary Audit shall be discussed
            with the FA&CAO along with the Chief Engineer so that timely corrective action may
            be taken and based on the outcome a draft composite Audit Report covering all the
            Audit Units within the scope shall be compiled / prepared, including additional
            information if any, that may be provided / obtained during such discussions and
            rectifications carried out at the instance of audit. The report should also contain
            specific suggestions for improvements, if any.
    (iv)    Based on the outcome of the discussions, the Audit Report thus compiled shall be
            structured as outlined hereunder:

Internal Audit Reports should be divided into four separate parts, namely:

Part-I         Compliance Report:

This part shall cover the comments of the Auditors on the adequacy of the compliance and
action taken for rectification of errors/discrepancies pointed out by previous auditor pertaining to
earlier phase and also Phase-I of the current year. It shall also contain the confirmation
regarding implementation of policies, systems, controls etc. to avoid the recurrence of such
irregularities in future. It may be ensured that the compliance report on audit observations
pointed out in reports relating to earlier audits is made and corrective actions taken on those
points are furnished in the Audit Report. In other words it may be ensured while conducting the
audit, compliance report of the audit observations pointed out in the earlier report of preceding
period, is furnished along with the corrective action taken.

Part-II        Important Observations/ Findings:

This part shall contain all such significant discrepancies observed during the current Audit and
the observations in which, the auditor feels immediate attention of management specifying the
financial implications, if any. In this part Auditor shall also bring the important areas requiring
improvement and their recommendation, if any. Also to indicate the improvements made by the
Company based on the audit observations. Further to report any deviations/observations from
policies, systems and procedures of HPGCL.




                                                15
PART ­ III      Report on Contracts/Pos placed on single tender & nomination basis:

It has been decided that internal auditors will report separately on Contracts/Purchase Orders
(P.Os) placed on single Tender/Nomination basis. The coverage of such contracts and the
format for such reporting is included in the statement below which may be adhered to.

A report indicating the number of contracts awarded on single tender & nomination basis in two
categories viz, (i) Contracts more than Rs. 5 Lac and (ii) Contracts up to Rs. 5 Lac and furnish
the same in the following statement indicating the contracts selected for review.

 Sr.      Contract       Party Name     LOA No. Value of Whether                     Policies      &
 No       Name                          and date Contract proprietary                procedures
                                                          item/urgency               followed (Y/N),
                                                                                     if no, reasons.



Part- IV        Detailed Report:

In this part, the Auditor shall furnish the detailed results of the Audit and Auditors confirmation
whether Company's system/guideline/propriety has been adhered to in the areas viz. works
including O&M contracts, procurement, operation, establishment records in Finance & HR,
establishment expenses, other expenses, depreciation, Commercial billing & its
realization/reconciliation, maintenance of fixed assets register, current assets, capital work in
progress, expenditure during construction, IDC, mandatory spares, stores, inter unit accounts,
review of accounts, township, transit camp and provision of liabilities, scrap income etc.

The report should be supplemented, in each Phase, by a statement indicating:

   (I)       Particulars of records along with their volume (i.e. total no. of vouchers in each
             category for each phase) and value/volume checked as compared to the total
             volume and value of transactions viz. Bank receipt vouchers/Bank payment
             vouchers/Cash receipt vouchers/Cash payment vouchers/JV etc. Similar statistics
             are required with reference to audit of contracts with the total no. of contracts
             awarded and the percentage of audit done.
   (II)      A summary report indicating the important observations for each phase and for each
             area.
   (III)     A statement indicating the audit personnel deployed (designation) including the visits
             of partners and the period of audit for each substation. The partner is expected to
             carry out the audit by himself so that the entire scope is covered in a systematic
             manner and to facilitate the reporting as per the requirement.
   (IV)      Any other observation of interest.
   (V)       The report should be furnished for each audit unit/office separately.




                                                 16
                                                                                  ANNEXURE-E

                       TERMS OF REFERENCE OF INTERNAL AUDIT

The terms and conditions for conducting Internal Audit in HPGCL are indicated hereunder:-

1. Audit Team

Auditors should deploy suitable teams for undertaking the audit, after a thorough perusal of the
requirements of the engagement letter, terms and conditions contained therein and the specific
instructions for Internal Audit, ensuring that the size of the audit team is commensurate with the
size of the auditee unit and the volume of work involved. The Head of Finance of the auditee
Unit will coordinate with the Audit Team for smooth functioning of the audit.

The audit team is to be headed at all times by a Chartered Accountant/Cost Accountant two
semi qualified assistants. The team members may be increased or decreased as per the
requirement with the specific approval of Controller of Accounts only.

2. Audit Report

The auditor should give report for each Phase as per the requirement of Annexure -D. Time is
the essence of audit. Delay in submitting the report will attract a penalty of Rs. 500/ per day.

3. Audit Fee

Audit fee shall be paid as per agreement for each auditee unit. Payment shall be regulated as
per man power deployed for audit. Any deviation /extension in the given programme could be
considered if informed well in time and approved from Controller of Accounts. In case the audit
team member/members remain absent from the duty, proportionate deduction from the audit fee
bill shall be made along with penalty of Rs. 500 per day per person.

The Audit Team including Partners will be provided free boarding, lodging.

Payment of Audit Fees

90% payment of the audit fee for each phase shall be released on completion and submission
of the audit report of the audited Phase, on submission of the bill with all supporting
evidences/documents required to process such bills including duty certificate issued by Head of
Finance of the audittee unit and acceptance certificate issued by Controller of Accounts.






Balance 10% of the audit fee along with security deposit shall be released at the end of the year
on faithful completion of the work.




                                               17
4. Audit Period:

Internal Audit shall be conducted in 2 phases for a financial year (Phase- I covering April to
September and Phase- II covering October to March). The commencement of Phase- I audit will
be on/around 5th September and Phase-II will be on/around 5th March and the reports for
Phase- I & II are to be submitted by 5th October and 5th April, respectively or within the
stipulated time as prescribed by the HPGCL.

Normally one month time shall be considered for audit of each phase of each unit which shall
ordinarily be of 25 working days. However if further working days are required, then approval of
Controller of Accounts shall be obtained.

5. General Terms & Conditions:

        Qualifying Criteria for Short Listing

   i.   Audit Firms having minimum experience of 5 years and above shall be considered for
        Short Listing and engagement.
   ii. The Audit firms that secure 70% and above marks as per qualifying criteria shall be
        considered for short listing and engagement. The criteria for assigning marks are given
        in Annexure-G.
   iii. Preference will be given to Audit firms located/having offices near the location to be
        audited. However, depending on the requirement, any Audit firm can be assigned Audit
        of any unit/ location of HPGCL.

        Other Terms & Conditions:

   iv. The financial quotes of the shortlisted firms only shall be considered for the evaluation
         criteria for engagement. The evaluation criteria are as per Annexure-H.
   v. Shortlisted firms will be intimated about their short listing. The firms who have been
         shortlisted but could not be assigned the work can be considered for the future
         assignments for the remaining periods at the negotiated prices.
   vi. The HPGCL reserves its right to accept or reject any application without assigning any
         reasons. The decision of the HPGCL for allotment of the work will be final and binding
         upon the parties participating in the short listing.
   vii. The Internal Auditor will ensure that the information obtained in respect of the operation
         of the Unit is maintained in strict confidence and secrecy. A certificate towards
         maintaining confidentiality is to be provided by the Internal Auditor at the time of
         acceptance of Audit assignment.
   viii. The engagement of the Audit Firm will be initially for one year i.e. FY 2019-20, which
         can be renewed further subject to satisfactory performance of the firms.
   ix. HPGCL's management reserves the right to terminate the engagement of the Firm.
   x. Internal Audit assignments can be terminated by giving 15 days notice in the following
         cases:
         a) If the Firm obtains the engagements on the basis of false information/false statement
              at the time of submission of application/documents for the NIT. or
         b) The Audit Firm is found to have sub-contracted the work. or
         c) If the Firm does not conduct audit in terms of the engagement letter. Or
         d) If performance /progress of the firm is not found satisfactory. or


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   e) If the Firm does not submit Audit Report, complete in all respect, in terms of the
      engagement within the specified date.
   f) If there is violation of provision of Company's Act, 1956. In case of termination, EMD
      of the firms shall be forfeited. Besides this HPGCL can also debar/blacklist the firm.

xi. In case of any dispute between the internal audit firm and the HPGCL, the matter shall
      be referred to the sole arbitrator to be appointed by the Managing Director, HPGCL.
xii. Audit firm shall maintain utmost good faith and confidentiality about the information
      gathered by them during the course of audit.
xiii. All the disputes arising out of engagement shall be subject to Panchkula Court only.




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                                                                                   ANNEXURE- F

           GENERAL INSTRUCTIONS TO AUDIT FIRMS AND DOCUMENTS LIST


(A) Instructions to Audit Firms
1. Format of Application must be completely filled in incorrect and incomplete applications will
    be rejected out-rightly.
2. Please ensure that date of opening of Registered Office, Branch Office, entrance dates of all
    Partners into the firm, date of joining of firm as qualified & semi-qualified assistants should
    be invariably indicated in the application.
3. All NITs will be evaluated on the basis of the documents furnished along with applications
    only. No further documents will be called for during the scrutiny of the NITs. Any additional
    document received, after last date & time of receiving the NITs as stipulated in the Notice
    Inviting NITs, will not be entertained.
4. Since, all the applications will be evaluated strictly on the basis of selection criteria as per
    Annexure-G please avoid attaching unsolicited information/documents for processing
    applications expeditiously.
5. All submitted documents should be signed by duly authorized Partner/partners with his
    name and with the seal of the firm.
6. One month shall be considered ordinarily of 25 working days. However, if further working
    days are required , then prior approval of Controller of Accounts shall be obtained.
(B) List of documents to be submitted along with the applications/NITs:

Interested audit firms are advised to go through contents of the NIT documents carefully and
submit all attested copies of the following documents in proper sequence along with the NITs as
described hereinafter:

1. Registration certificate of the firm issued by the Institute of Chartered Accountants of
   India/the Institute of Cost Accountants of India. Information related to year of establishment
   of Head Office & Branch Office(s), addresses, details of partners and their membership nos.
   etc. as indicated in the Certificate will be treated as conclusive and final information for the
   purpose of evaluation of NIT.
2. Membership certificates of the qualified assistants issued by the Institute of Chartered
   Accountants of India/the Institute of Cost Accountants of India.
3. Certificates/mark sheets issued by the respective Institutes in evidence of qualifications of
   semi-qualified assistants.
4. Copies of appointment orders for Financial/cost/internal audit in HPGCL and its
   Subsidiaries/PSU/Govt./Scheduled Bank/others in evidence of experience.
5. Copy of PAN Card.
6. Copy of GST Registration.
7. A cancelled cheque form of the Bank to which Fee payments will be made.
   .




                                                20
                                                                              ANNEXURE- G

        SELECTION CRITERIA (POINT ALLOCATION) FOR SHORT LISTING OF AUDIT
                            FIRMS WILL BE AS FOLLOWS

Sr.     Particulars                            Points         to       be Maximum points
No.                                            allocated
1       Year of Establishment of the Audit 1         (one) per year in 14 (fourteen)
        Firm/Limited Liability Partnership existence (fraction of the
        Firm                                   year to be ignored)
        (minimum experience - 5 years)
2       No. of Partners in the Firm/Limited 2 (two) for each Partner 18 (eighteen)
        Liability Partnership Firm who are who is ACA/ACMA
        with the Firm for a minimum period of 3(three) for each Partner
        one year as on date of application.    who is FCA/FCMA
3       Number of ACA/FCA/ACMA/FCMA 2                        (two)    per 06 (six)
        (who may be a Partner) with CISA / ACA/FCA/ACMA/FCMA
        DISA
4       No. of Qualified Assistants (CA/CMA 2 (two) per Qualified 14 (fourteen)
        ) employed with the Firm               Assistant
5       No. of Semi-qualified Assistants 1 (one) per Semi- 9 (nine)
        (CA/CMA            Intermediates/IPCC) qualified assistant
        employed with the Firm
6       No. of Technical Experts having 2 (two) per Expert                4 (four)
        Engineering background
7       Experience of the Firm in Power 3 (three) per year of 15 (fifteen)
        sector preferably under Central/State Audit      (fraction of the
        Government                          as year to be ignored)
        Financial/Cost/Internal Auditors
8       Experience      of     the   Firm   in 2 (two) per year of Audit 10 (ten)
        sectors/industries other than Power (fraction of the year to be
        under Central/State Government as ignored)
        Financial/Cost/Internal Auditors
9       Empanelment with Comptroller and 2 (two) per year of Audit 10 (Ten)
        Auditor General of India having head (fraction of the year to be
        office                              at ignored)
        Chandigarh/Panchkula/Mohali)
        Total Points                                                      100 (hundred)

Note:

      (i) Audit Firms having minimum experience of 5 years and above shall be considered for
           financial bid opening.
      (ii) The Audit firms that secure 70% and above marks as per qualifying criteria shall be
           considered for financial bid opening.




                                               21
                                                                           Annexure-H

           FINANCIAL QUOTE SHEET AND FINANCIAL EVALUATION CRITERIA

Financial Quote:

The bidder shall quote the audit fee per month per member of the audit team in the following
format:

 Particular of the Audit No.       Of Amount per Taxes                          Total including
 team                       members   man month  (if any)                       taxes
                                      (in Rs.)   (in Rs.)                       (in Rs.)
 Head of Audit Team 1
 (Chartered Accountant/Cost
 Accontant)
 Audit     Assistant  (Semi 2
 qualified Assistant)
 Other Overheads/ Charges 1 (Lumpsum)
 Total

Evaluation Criteria:

The bidders shall be selected on the basis of L-1 criteria. L-1 shall be declared on the basis of
total fee quote as per the above financial quote. Payment shall be made for the actual work
done only.

After ascertaining L-I, their final negotiated annual fees shall be divided into two parts i.e 50%
for Phase-I and 50% for Phase- II at the time of placement of Work Order and the payments
shall be made Phase wise.




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