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Housing And Urban Development Corporation Limited,Mumbai, Maharashtra
July, 22nd 2019

Ref. No. HUDCO/MRO/651/2019-20/                                             Dated 18.07.2019

Sub.:- APPOINTMENT OF CHARTERED ACCOUNTANT FIRMS AS INTERNAL
      AUDITORS FOR UNDERTAKING COMPREHENSIVE INTERNAL AUDIT FOR THE
      YEAR 2019-2020.


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, Mumbai Regional Office invites offers from eligible Chartered Accountant Firms as
Internal Auditors for undertaking Comprehensive Internal Audit for the year 2019-2020.

                                                                           
 
The following conditions are applicable with regard to submission of quotation for award of
work by HUDCO Regional Office Mumbai.

(I) The Scope of Work shall broadly cover the points as per enclosed Annexures as
    detailed below :
    (1) Scope of Work for appointment of Chartered Accountant Firms as Internal Auditors as per
       ANNEXURE-I.
    (2) Checklist of Scope of Work as per ANNEXURE-II.
    (3) Eligibility Criteria for the Internal Auditor as per ANNEXURE-III
    (4) Specimen Format of the Report as per ANNEXURE-IV

(II)   :
(II) ELIGIBILITY CRITERIA :

   1.   The Chartered Accountant Firm should have at least three years' experience in
        undertaking Internal Audit work of Public Sector Undertakings.

   2.   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)}

   3.   CA Firm should have local office not exceeding 30 kms. from HUDCO, Mumbai
        Regional Office at Fort. It should also have minimum five working staff (including
        one partner).
   4.   CA Firm should have at least two years' experience in handling Tax related matters
        including filing of TDS in respect of Public Sector Undertakings.
        5.         The CA Firm is expected to undertake the review for each month's transactions in
                   the first week of succeeding month.

(III)         
(III)        SELECTION PROCEDURE :

                       :
             The selection of consultant shall be based on Technical bid and Financial bid :

             (1)     The selection of CA firm is to be carried out by following two-bid system
                      i.e. tenderer shall be required to submit technical and price bid in separate cover
                      in overall sealed envelope.
             (2)      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 of 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)      While evaluating the technical bids, CA firms' capability to perform the audit
                      related work should be assessed and inspection of their office may be carried so
                      as to establish the fact that the CA firms have local office.
             (4)      Firms will be shortlisted on the basis of Technical Bid.
             (5)     Financial bids will be opened from the shortlisted firms.
             (6)     If more than one firm selected as L1, then preference will be given to technically
                      sound firm.
 (IV)   :
  (IV) TENURE OF THE APPOINTMENT :

         The firm will be selected for the F.Y. 2019-2020. However, the appointment can be
         renewed on yearly basis for another two years based on satisfactory work & with
         approval from H.O.

(V)     :

(V)          MAXIMUM COST OF INTERNAL AUDIT WORK :

             The upper tender limit of fees of Internal Auditor (excluding GST) is as under:-

             (1)     For audit and verification of imprest and project loan ­ Rs. 10000/- per month.
             (2)     For audit and verification of HUDCO Niwas vouchers
                     (a) Less than 100 vouchers - Rs.5000/- per quarter
                     (b) 100 - 300 vouchers - Rs.7000/- per quarter
                     (c) 300 - 500 vouchers - Rs.8000/- per quarter
                     (d) 500 - 1000 vouchers - Rs.11000/- per quarter
                     (e) More than 1000 vouchers - Rs.13000/- per quarter

             (3)      For audit and verification of PDS vouchers
                     (a) Less than 500 vouchers - Rs.3500/- per quarter
                     (b) 500 - 1000 vouchers - Rs.6500/- per quarter
                     (c) 1000 - 2000 vouchers - Rs.13000/- per quarter
                     (d) More than 2000 vouchers - Rs.17000/- per quarter
     (4)   KYC and PML verification as per KYC and PML guidelines, pertaining to
           Projects, PDS and HUDCO Niwas ­ Rs. 300/- per month
     (5)   For audit and verification of sanction of project loans ­ Rs. 100/- per case with a
           ceiling of 10000/- per annum.
     (6)   For audit and verification of releases of project loans ­ Rs. 100/- per case with a
           ceiling of 10000/- per annum.
     (7)   For audit and verification of HUDCO Niwas sanction and release - Rs. 75/- per
           case with a ceiling of 10000/- per annum.
     (8)   For audit and verification of PDS cases - Rs. 50/- per case with a ceiling of
           10000/- per annum.
     (9)   Incidental Matters and other Miscellaneous work ­ Rs. 300/- per month.

The Fees for aforesaid assignments has to be mentioned separately in Financial bid. No out
of pocket or other expenses shall be paid.

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.

The monthly/quarterly payments shall be made @80% of the due fees and balance
20% shall be released after audit of annual accounts by Statutory Auditors and
issuance of Tax Audit Report.

The CA Firm is expected to undertake the review for each month's transactions in the
first week of succeeding month.

(VI)    :

(VI) GENERAL TERMS & CONDITIONS :

   (1) The Consultant is expected to undertake the review for each month's transactions in
       the first week of succeeding month.
   (2) Internal Audit Department, Head Office has the right to replace CA firms if it is found
       that the Internal Audit is not of required standard.
   (3) The Internal Audit is to be conducted with the highest standard of professional,
       ethical competence and integrity.
   (4) Regional Office will also take the assistance of the Consultant in carrying out the
       necessary rectifications promptly with a view to keep updated record.
   (5) HUDCO has the right to replace consultant, if it is found that the reporting/verification
       are not of required standard.
   (6) Any modification in offer after the date of opening will not be considered.
   (7) Offers received late will not be considered. HUDCO Regional Office Mumbai will not
       be responsible for any postal delay or any delay whatsoever.
   (8) HUDCO Regional Office Mumbai reserves the right to accept or reject any or all
       offers without assigning any reason.


    (9)            /    ,   
          (      10:00    5:00 )   
                
   (9) In case any information/clarification is required in respect of Tender, the same may
       be obtained by visiting HUDCO Regional Office Mumbai during working days
       (Monday to Friday between 10:00 a.m. to 5:00 p.m.).
(10)                   "          
      ,           2019-20   "    
      2019-20   "         -
                   ( 
               )
(10) Quotations should be sent in a sealed envelope super scribing on top " Internal Audit
     of Accounts of Regional Office, Mumbai for the Financial year 2019-20". Accordingly
     you are requested to send Technical Bid and Financial Bid in two separate
     envelopes (given as Annexure IV and Annexure V).
(11)          "  2019-2020   
          "     2019-2020      
             
(11) Bids should be submitted in a sealed envelopes clearly indicating "Technical Bid
    for Internal Audit Work for the Financial Year 2019-2020" and "Financial Bid
    for Internal Audit Work for the Financial Year 2019-2020" respectively.
(12)  /               , ,
      ,                   /
      ,  ( , ,   )       
         
(12) 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.
(13)   /                
     ,   , 175,   ,  ,  - 400 001       
                                        
    29.07.2019  15:30   |
(13) Quotation/Offer can be sent by post or deposited in tender box available at
     Reception on 2nd Floor in HUDCO Mumbai Regional Office at Shreyas Chambers,
     2nd floor, 175, Dr. D.N. Road, Fort, Mumbai ­ 400 001. The last date and time for
     submission of offer is 29.07.2019 by 15:30 hrs.
(14)   29.07.2019  16:00        
                 ,   ,     
       
(14) The Technical Bid will be opened on 29.07.2019 at 16:00 hrs. Please submit copies
     of Experience Certificate, Work Order, Registration Certificate etc. along with
     detailed profile of firm in Technical bid.






(15)                   
        ,       

(15) The Financial Bid of short listed firms on the basis of Technical Bid shall be opened
     on a date and time to be communicated later on.

(16)   . 3000/-                                    /       
             . ...                                             ..    ,
       ...         
    . ...     /   
   (16) EMD of Rs. 3000/- should be paid by RTGS / NEFT as per the bank details detailed
        below. In case of CA firms registered as MSME, no EMD amount is required to be
        paid subject to confirmation / submission of MSME registration certificate.

        Name of the party   :      Housing & Urban Development Corporation Ltd.
        Name of the bank    :      Axis Bank Ltd.
        Branch              :      Fort Branch, Mumbai
        Account No.         :      911020033905070
        IFSC Code           :      UTIB0000004
    (17)                 
                         
                      
         
   (17) EMD of successful bidder shall be retained as security Deposit and refunded on
        satisfactory completion of the term. The EMD of unsuccessful bidders shall be
        returned after finalization of appointment by HUDCO. Interest will not be paid on
        EMD amount.
    (18)  /     /      ,   
                     
   (18) Payment of fees/charges shall be made through RTGS/NEFT for which the bank
        details will have to be submitted by the selected firm along with financial bid.
    (19)                       
        (),    ,   ,  , 175, .   ,  ,  -
        400 001
   (19) Location for submission of sealed quotation is Housing & Urban Development
        Corporation Ltd. (HUDCO), Mumbai Regional Office, Shreyas Chambers,
        2nd floor, 175, Dr. D.N. Road, Fort, Mumbai ­ 400 001.
The above document is prepared both in Hindi and English. In the event of ambiguity or
conflict between the two versions, the English language version will be used for
interpretation in connection with these documents as may be required by HUDCO
,

                                                                               
    Date :- 18.07.2019                                                      .
                                                                              ()
                                                                       ANNEXURE ­ IV
                                   TECHNICAL BID


(01) Name of the Firm                            ________________________________

(02) Status of the Firm
     (Enclose supporting documents)              ________________________________

(03) Date of Establishment of Firm               ________________________________
     (Enclose supporting documents)

(04) Address of the Firm                         ________________________________

                                                 ________________________________

                                                 ________________________________

(05) Telephone Numbers / Fax Numbers / E-Mail   ________________________________

(06) Experience in undertaking Internal Audit Work ________________________________
     of Public Sector Undertakings
     (Please enclosed appointment letters)

(07) No. of Partners (CAs) & No. of paid assistants ________________________________
     {qualified(CA/CMA)/semi qualified(CA/CMA-
     Inter)} (Please enclosed list & their qualification)

(08) Staff including partner(s) at Local Office      ________________________________
     (List of staff & partners working in local Mumbai
     Office along with their Phone no.)

(09) Experience in handling Tax related matters
     Including filing of TDS in respect of PSUs (in yrs.) _____________________________
     (Enclose copies of appointment letters)

(10) Name of paid CAs                            ________________________________

(11) Number of other paid staffs                 ________________________________




Date:

Place:


                                         (Signature of the Authorized Signatory with seal)
                                                                     ANNEXURE ­ V

                                   FINANCIAL BID


1. Name of Firm
2. PAN No.
3. Goods & Service Tax Registration No.

Sr.            Particulars           Maximum Fees        Amount quoted
No.
1.    For audit and verification of Rs. 10000/- per
      imprest and project loan      month
2.    For audit and verification of
      HUDCO Niwas vouchers
      (a) Less than 100 vouchers    Rs.5000/- per
                                    quarter
      (b) 100 - 300 vouchers        Rs.7000/- per
                                    quarter
      (c) 300 - 500 vouchers        Rs.8000/- per
                                    quarter
      (d) 500 - 1000 vouchers       Rs.11000/- per
                                    quarter
      (e) More than 1000 vouchers Rs.13000/- per
                                    quarter
3.    For audit and verification of
      PDS vouchers
      Less than 500 vouchers        Rs.3500/- per
                                    quarter
      500 - 1000 vouchers           Rs.6500/- per
                                    quarter
      1000 - 2000 vouchers          Rs.13000/- per
                                    quarter
      More than 2000 vouchers       Rs.17000/- per
                                    quarter
4.    KYC and PML verification as Rs. 300/- per
      per KYC and PML guidelines, month
      pertaining to Projects, PDS
      and HUDCO Niwas
5.    For audit and verification of Rs. 100/- per
      sanction of project loans     case     with    a
                                    ceiling of 10000/-
                                    per annum.
6.    For audit and verification of Rs. 100/- per
      releases of project loans     case     with    a
                                    ceiling of 10000/-
                                    per annum.
7.    For audit and verification of Rs. 75/- per case
      HUDCO Niwas sanction and with a ceiling of
      release                       10000/-        per
                                    annum.
8.   For audit and verification of Rs. 50/- per case
     PDS cases                     with a ceiling of
                                   10000/-       per
                                   annum.
9.   Incidental Matters and other Rs. 300/- per
     Miscellaneous work            month.




Date :
Place :                    (Signature of the Authorized Signatory with seal)
                                                                          ANNEXURE I

                                    SCOPE OF WORK

Projects :

   Sanctions

       Verifying the receipt of duly filled-in loan applications in prescribed formalong 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-à-vis budget
       Verification that present Salary of employees has been calculated correctly in
       accordance with 3rdPay 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.
       Checking capitalization made and its booking in appropriate account head.
HUDCO Niwas

      Verification that loan application and its acceptance is in prescribed format
      anddocuments 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.
      Identification of default/NPA cases.
      Verify that penal interest, compound interestare 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 (Fire & Accident)
      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
      Softwarepackage.
      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 byHUDCO (as CNA)
      and CLSS subsidy received from NHB by HUDCO (as PLI) is as per guidelines.
      Verify the Rectification JV/Differential Entry passed by the RO in the HUDCONiwas
      Accounting System (Software package), if any.
      Verify TDS & GST of HUDCO Niwas / PMAY CLSS.
      Certify all reports required by H.O. & NHB.

Public Deposit Scheme

      Verification that application forms for deposits and its acceptance till 30th June, 2019
      are in the prescribed format and documents submitted therein are as per the
      guidelines.
      Verifying that the renewal of deposits received under HUDCO Public Deposit
      Scheme till 30th June, 2019are 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. (till 30th June, 2019)
      Verify whether maturity interest/pre-mature interest on FDR/Loan against FDR 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
      deposited with Income Tax department by 7th of succeeding month.
      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 depositors.
      Verify that the details of Assessment Year, Rate of TDS are correctly filled up in
      challans deposited with I.T. department.
      Verifying that the notices received from Income Tax Authorities are promptly
      attended to.
      Verification with respect to filing of correction statement/Rectification 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 monthly / 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 payments
      are 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 / non-
      deductibility of TDS.
      Verification with respect to Filing of correction statement/Rectification 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 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
      Act/ 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.
      Review/verify the Tax consultant report/ GST Audit Reports and comments, if any.
IND-AS Related
      Verification that all the provisions of Indian Accounting Standards (IND-AS)
      applicable to HUDCOalong with any instruction issued by HO from time to time in
      this regard are timely complied with and furnished in prescribed format.
      Verification of passing of necessary IND AS entries by RO in respective GL heads.
KYC & PML Certification
      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 received at RO, HUDCO Niwas, PDS and furnishing the
      certificate as prescribed by Principal officer / ED (IA), on monthly basis (as per IOM
      dated 30.01.2018 issued by IA-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.
      Compliance Status of outstanding observations of previous audit reports.
      Any other issue raised by Statutory Auditors during the course of audit.
                                                                               ANNEXURE II

Scope of Work /Checklist for the Internal Auditors to be appointed at ROs with
comments on observations and deviations, if any

S.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
      per its 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 financing pattern 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)/Inter 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
      receipt/credit of payments received from agency based on
      the bank statement.
  15. Verify the project property under project loan is registered
      with appropriate authority.
  16. Verify that valuation report of mortgaged property have been
      obtained as and when required and in terms of guidelines
    from empanelled valuers and duly accepted by competent
    authority.
    Verify that project property mortgaged to HUDCO is insured
17. v
    as per LMC/Guidelines.
18. Accounting of Corporate Debt restructuring and waiver
    implemented during the year.
19. Accounting of Restructuring /Deferment/Re-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 CLA/ICA 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 Loan released, Grant
    released by Hudco.
24. 100% verification of calculation of interest & penal
    levies in respect of all the agencies of RO.
25. 100% verification of appropriations of payment received
    from agency in respect of all the agencies of RO.
26. To verify the OTS calculation before intimation to the
    Head Office.
27. To      check      comprehensive        implementation       of
    deferment/amendment/waiver in the loan card/ new loan
    card/ loan Ledger with respect to OTS/ DRP/ Decree of
    DRT/DRAT/
    CDR/Restructuring/Deferment/reschedulement/Curtailm
    ent of loan based on the amendment letter issued by
    the Regional Office and its accounting entries.
28. 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.
29. Verify the classification of assets/loan (Housing and Non
    Housing) in respect of Project loans sanctioned during
    financial year.
30. Monitor the timely receipt of Progress Reports, during the
    course of project implementation and Completion certificate
    upon project completion
31. Identification of default/NPA cases.
32. Verify whether default cases are being reviewed a0nd
    followed up regularly.
33. Review the progress on the declared/identified fraud
    cases.
34. Verify whether DMRC meetings are held regularly and
    minutes are forwarded by RO to Hqrs. as per guidelines.
35. 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 along with its
      calculation and deductions.
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
      duly supported relevant documents for claiming such
      exemptions
3.    Verify that the present pay has been calculated correctly in
      accordance with the 3rd pay revision order issued.
4.    Verify that TA/DA 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 year
8.    Review of status with respect to settlement of long
      pending entries i.e. advances, provisions, etc.
9.    Checking all capitalisation made and its booking in
      appropriate account head.
ACCOUNTS
1.    Verification of all bank and journal vouchers.
2.    Verification of monthly trial balance accompanied by audit
      report
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
      approval of competent authority.
6.    Verification of reconciliation of bank accounts with reference
      to closing 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 balances)
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 statutory payments
        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 policies are renewed and taxes are paid timely.
    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 weeding out of old records as per guidelines
        Verify whether minutes of Asset Disposal Committee is
        available
    8. Digitization of records and backup of data to be maintained
        as per guidelines.
    9. In case the supplier is a MSME agency, the certificate
        issued by the competent authority for being MSME
        needs to be verified and checked.
    10. Verify Unique ID's is allotted to all the fixed assets and
        Coding List is maintained for recording Unique IDs.
        Also, such list and FAR should be updated on real time
        basi
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 1. 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 ROI in the individual loan ledger. 5. Verification of release of loan after compliance of sanction conditions, site inspection, individual contribution and requisite financial and physical progress. 6. Verification that requisite number of post-dated cheques have been received as per guideline and verification of conversion of PDCs with NACH 7. 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. 8. Identification of default/NPA cases. 9. Verification that penal interest, compound interest calculated as per practice/procedure/norm 10. NPA provisioning and interest reversal as per NHB norms in respect of all default cases. 11. Verification that all insurances have been taken as per guidelines 12. Verification of books of accounts and vouchers in regard to appropriateness and correctness of heads of accounts 13. Verification of bank reconciliation and monthly cumulative report for quarterly, half-yearly, nine-monthly and annual statement generated through Software package 14. Verify whether necessary provisions in HUDCO Niwas loan has been made as per NHB norms 15. Verify whether correct entries have been passed for interest due and interest de-recognition. 16. Verifying Compliance of requirements as per GST Act / Income Tax Act. 17. Verification that eligible CLSS subsidy claims/releases to banks by HUDCO (as CAN) and CLSS subsidy received from NHB by HUDCO (as PLI) is as per guidelines 18. Verify the Rectification JV/Differential Entry passed by the RO in the Hudco Niwas Accounting System (Software package), if any 19. Review the progress on the declared/identified fraud cases. PUBLIC DEPOSIT SCHEME 1. Verification that application forms for deposits and its acceptance till 30th June, 2019 are in prescribed format and documents submitted are as per guidelines 2. Verifying that the renewal of deposits received under Hudco Public Deposit Scheme till 30th June, 2019 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. 3. Application form are duly stamped with respect to application being received direct or through broker (till 30th June, 2019) 4. Verify whether maturity interest/pre-mature interest on FDR/Loan against FDR 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 depositors. 9. The details of Assessment Yea, rate of TDS are correctly filled up in challans deposited with I.T. department. 10. Verifying that notices received from Income Tax Authorities are attended to promptly. 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 per the 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, 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. 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 / 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 / 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 / services covered under RCM and accounted for in books of Accounts properly. 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 regard to GST from time to time. 7. Review/Verify the Tax consultant report and GST Audit Reports and comments, if any. IND-AS RELATED 1. Verification of provisions of Indian Accounting Standards(IND-AS) applicable to HUDCO as per the instructions issued by Head Office from time to time are complied with and furnishedin the prescribed format comprising of the following - (a) Brokerage paid against Public Deposit during the quarter. (b) Security deposit and deposit for services outstanding as on date. (c) Lease rental paid against the leasehold properties. (d) FEF received against the project loans during the quarter. (e) Administrative fees received against the HUDCO Niwas loans during the quarter. 2. Verification of passing of necessary IND AS entries by RO in respective GL heads. 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 IOM dated 30.01.2018 and other instruction issued from time to time by IA-wing). Incidental Matters 1. Verify that the receipt of Utilization Certificate under CSR is being regularly monitored by 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. 4. Compliance Status of outstanding observations of previous Audit Reports. 5 Any other issue raised by statutory auditors during the course of audit. ANNEXURE III Eligibility criteria for the Internal Auditor Regional Offices should start the process of appointment of chartered accountant firms as Internal Auditors. This process should be in conformity with the HUDCO guidelines/directions of CVC/CVO circular issued from time to time. While making selection of CA Firm as Internal Auditor, following points (minimum technical criteria) may be considered: 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). 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 I and checklist (Annexure II) (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 should be assessed and inspection of their office may be carried so as to establish the fact that the CA firms have local office. It may be ensured that the quotations are invited by uploading the same at HUDCO website and Central Public Procurement portal (www.eprocure.govt.in). 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. The selection of CA Firm is to be carried out by following two-bid system as prescribed in the Purchase Manual i.e tenderer shall be required to submit technical and price bid in separate sealed cover in overall sealed envelope. RO to ensure that financial bids of those bidders should be opened who qualified the technical criteria prescribed in the tender. The firm may be engaged for a continuous period of 3years. However, the appointment shall be renewed on yearly basis, based on the satisfactory performance in the previous years with the approval of Head Office, RO may send the recommendation for appointment of CA firm to head office for approval along with the profile of the firm at the time of appointment. Description of the work Amount (Rs.) For audit and verification of imprest and project 10000/- per month loan For audit and verification of HUDCO Niwas vouchers 1. Less than 100 vouchers 5000/- per quarter 2. 100 ­ 300 vouchers 7000/- per quarter 3. 300 ­ 500 vouchers 8000/- per quarter 4. 500 ­ 1000 vouchers 11000/- per quarter 5. More than 1000 vouchers 13000/- per quarter For audit and verification of PDS vouchers 1. Less than 500 vouchers 3500/- per quarter 2. 500 ­ 1000 vouchers 6500/- per quarter 3. 1000 ­ 2000 vouchers 13000/- per quarter 4. More than 2000 vouchers 17000/- per quarter KYC and PML verification as per KYC and 300/- per month PML guidelines, pertaining to Projects, PDS and HUDCO Niwas For audit and verification of sanction of project 100/- per case with a loans ceiling of 10000/- per annum For audit and verification of releases of project 100/- per case with a loans ceiling of 10000/- per annum For audit and verification of HUDCO Niwas 75/- per case with a ceiling sanction and release of 10000/- per annum For audit and verification of PDS cases 50/- per case with a ceiling of 10000/- per annum Incidental Matters and other Miscellaneous Rs.300/- per month work GST charges will be additional The monthly/quarterly payments shall be made @80% of the due fees and balance 20% shall be released after audit of annual accounts by Statutory Auditors and issuance of Tax Audit Report. The CA Firm is expected to undertake the review for each month's transactions in the first week of succeeding month. Internal Audit Department, Head Office has the right to replace CA firms if it is found that the Internal Audit is not of required standard. The Internal Audit is to be conducted with the highest standard of professional, ethical competence and integrity. ***** ANNEXURE IV 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-I 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) Non production of records, if any l) Executive Summary of the audit observations ** The Audit team will consist minimum of one Chartered Accountant and one paid assistant{qualified (CA/CMA)/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 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 7 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 (ANNNEXURE A). c) The internal audit is to be conducted with the highest standard of professional 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. *****
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