MP State Electronics Development Corporation Ltd.
(A Govt. of M.P. Undertaking)
Tender
for
Appointment of the Chartered Accountant Firms as Internal Auditor for Audit
of Madhya Pradesh State Electronics Development Corporation Limited
(MPSEDC) for the period of Two Financial Years (2019-20 & 2020-21)
Tender No. - MPSEDC/ F&A/ Internal Auditor/ 2019/ 419
Dt. 23.07.2019
(Scanned copy of all pages of this document to be submitted duly
signed on each page.)
Chief General Manager
M.P. State Electronics Development Corporation Ltd.
47-A, State I.T. Centre, Arera Hills, Bhopal-462011 (M.P.)
Ph. No. 0755 - 2518605, 2518688
Fax: 0755-2579824
1
SECTION-I
TENDER INFORMATION
Chief General Manager, MPSEDC Ltd., Bhopal invites bids from bidders for
Appointment of the Chartered Accountant Firms as Internal Auditor for Audit
of Madhya Pradesh State Electronics Development Corporation Limited
(MPSEDC) for the period of Two Financial Years (2019-20 & 2020-21).
Interested bidders may obtain further information from the office of MPSEDC
Ltd., Bhopal. Bids are invited for the work mentioned hereunder:
BID DATA SHEET
Particular Details
Name of the Client Madhya Pradesh State Electronics Development Corporation
Ltd. (MPSEDC)
Address and Concerned person for Chief General Manager, MPSEDC, State IT Center, 47-A,
Correspondence Arera Hills, Bhopal, Madhya Pradesh
Date of Release 23.07.2019
Submission end date and time 20.08.2019 at 02.00 PM
Cost of Tender document Rs. 1,000.00 + Processing Fees (non-refundable) to be paid
online through the e-procurement portal.
Date and time for opening of 21.08.2019 at 04.30 PM
Technical Proposal
Date and time for opening of The date and time would be communicated to the technically
Financial Proposal of technical qualified bidders
qualified bidder
Method of submission of Proposal Only through e-Procurement portal of MPSEDC (website
https://mptenders.gov.in)
Validity of Bids Minimum 180 days from the due date of submission of
proposal as mentioned in this Tender or the subsequent
corrigendum (if any)
Note:
Tender document can be view/downloaded from the website (https://mptenders.gov.in). Bidder
has to submit the document fee and processing fee amount Online only.
Any further corrigendum/addendum shall be uploaded on the e-procurement portal
(https://mptenders.gov.in) only.
2
SECTION-II
PREFACE
M.P. State Electronics Development Corporation Ltd. is the agency of the state working towards promotion
& implementation of IT and e-Governance. It is the single-point of access to any IT business opportunity in
Madhya Pradesh and encourages various players in the field of IT to come forward and invest in the state of
Madhya Pradesh.
MPSEDC is committed to generate IT business for the public/private sector with a mandate from the
Government to develop IT in the state. This includes opportunities for software development, supply of
hardware & peripherals, networking and connectivity, web applications, e-commerce, IT training and an
entire gamut of direct and indirect IT businesses.
MPSEDC is seeking to hire an Auditing firm with focus on regular internal audit of the office(s) to assess,
review, recommend and comment in respect of effectiveness & efficiency of accounting, financing, operation
& maintenance functions and procedural compliance at all the corporate divisions.
The Auditing firm would be required to ensure prevention, by early detection, of misappropriation, fraud,
irregularities, negligence, etc. and establish an effective internal audit and control system thereby achieving
the objectives specified in the Corporate and Operational Plans.
The company intends to appoint an Audit Firm for conducting internal audit for the Financial Year 2019-20
& 2020-21. The Firms are therefore requested to send their Proposal as per the Terms of Reference.
The Audit firm having its Office Address (either Head office or Branch office) at Bhopal location only.
SECTION-III
SCOPE OF WORK
The audit firm would be required to conduct the internal audit of MPSEDC in accordance with the standards
/ procedure on internal audit. The detailed scope of work for Internal Audit for the financial years 2019-20
& 2020-21 is at Annexure A.
Initial engagement period of appointment will be for two financial years for the FY 2019-20 & 2020-21.
Based on the satisfactory performance, the tenure may be further extended, as year on year basis for a
maximum period of two more years.
In case, tenure is further extended then it will subject to 10% increment in the last quoted fees of Year
2 & Year 3 respectively.
The structure of the deployed team and its Roles and Responsibilities is at Annexure B.
The company invites online bids for consideration.
The internal audit of the accounts should be carried out on Half Yearly basis without any over lapping. Half
Yearly reports need to be submitted to the MD, MPSEDC after completion of each Half year and the
audit period should be minimum of 10 days for each phase of audit covering the entire scope.
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Audit firm is required to visit MPSEDC office as and when required as per scope of work.
The audit should be executed by a competent team of professionals, comprising of at least 1 Qualified
Fellow Chartered Accountant/ 1 Qualified Associate Chartered Accountant and 2 qualified staff (CA
inter, CS Inter, MBA (Finance) & B.com/ M.Com) who have strong exposure & experience and should be
closely supervised by a partner level person who will oversee the audit and attend all meetings with the Top
Management / Audit Committee, when required.
SECTION-IV
TECHNICAL EVALUATION CRITERIA
S.No. Particulars Points per Maximum Bidder Supporting
Criteria Points per Points per Documents
Criteria Criteria
1 No. of years of Firm Existence 5 Copy of Certificate of
experience (minimum for 15-20 Incorporation
15 years) years 10
More than 10
20 Years
2 Number of Full Time Upto 3 5 Copy of Certificate in
Fellow Chartered FCA the name of the partner
Accountant Partners 10
(As per certificate of More than 7
ICAI) 3-and upto
5 FCA
More than 10
5
3 No. of Qualified staff 3 Points per 15 Copy of Certificate in
CA/ CMA) (Post/ Qualified Staff the name of the
Qualification/ employee.
Experience of at least 1
year)
4 Experience of Internal 5 Points per 25 Copies of Work Order
Audit assignment in Assignment and Completion
Central / State Certificate of
Government / PSU in respective Central /
last three year: No. of State Government /
4
assignments PSU along with proof
of final payment rec.
5 Experience of Internal 1 Point per 05 Copies of Work Order
Audit in ERP Assignment and Completion
environment in last Certificate along with
three years: Total proof of final payment
Nos. received
6 Experience of Internal 3 Points per 15 Copies of Work Order
Audit in Bank/NBFC/ Assignment and Completion
Management Certificate along with
Consultancy/ Bid proof of final payment
Management in last received
three years : No of
assignments
7 Average Annual > 75 <= 10 Copy of Audited
Turnover for three 100 15 Annual Financial
years (covering 2015- Statement./ Income Tax
2016, 2016-2017 & Returns
2017-2018) - > 100 15
(minimum Rs. 75
Lakh) : Year wise
8 Firm having 05 Rent Agreement/
HO/Branch office Electricity Bill/
registration in Madhya Telephone Bill copy/
Pradesh Certificate of
Incorporation
Total 100
Note:
#Professional firms which obtain at least 65% marks based on the technical parameters would be
considered for opening financial bids for selection of bidder based on the lowest commensurate fees
quoted by the professional firm
5
SECTION-V
INSTRUCTIONS
PRICE BASIS AND PAYMENTS
The proposal should include price all-inclusive lump sum (including TA/DA and other out of pocket
expenses, etc.) in Indian Rupees only, for the entire scope of work covered under the Terms of Reference on
a firm price basis (with no escalation provision for whatever reason) valid till the complete execution of the
assignment as per the Financial Bid format Online. The Contract price and the scope of work also include
any services, etc. which is not specifically identified but are required for completion of the assignment.
TERMS OF PAYMENT
Payment: Payment shall be released by MPSEDC for each year of the Contract period as per the following
terms:
S. No. Particulars Percentage (%) of Time line for report
the Annual Quoted submission
Fees (AQF) for the
relevant year
1 On submission and acceptance of 1st Half 40% Within one month
Yearly Report along with the from the end of half
Management Letter. year.
2 On submission and acceptance of 2nd 40% Within one month
Half Yearly Report along with the from the end of half
Management Letter year.
3 Final payment after one (1) month from 20%
the date of submission of Last Half
Yearly reports.
No interest, claim or penalty etc. would be payable by MPSEDC in case of any delay in payment
beyond stipulated time.
No. advance payment shall be made against audit fee.
6
OWNER'S RIGHT TO ACCEPT/ REJECT THE PROPOSAL
MPSEDC reserves the right to accept or reject the proposal at any time prior to award of Contract, without
thereby incurring any liability to the Auditing Firm concerned or any obligation to inform the Auditing Firm
concerned of the grounds for the Owner's action.
Confidential
The Audit firm shall not disclose the documented management systems to any third party including their
internal department.
Sub-Contracting
The selected bidder shall not sublet the work of Internal Audit to any other party. Any violation of this
provision would make the contract liable for termination.
TENDERING PROCESS:
The bidder is responsible for registration on the e-procurement portal (https://mptenders.gov.in) at their
own cost. The bidders are advised to go through the e-procurement guidelines and instructions, as provided
on the e-procurement website, and in case of any difficulty related to e-procurement process, may contact the
helpline number 18002588684. The Bidder shall submit the proposals online as described below-
a) Proposal that are incomplete or not in prescribed format may be rejected.
b) The Technical and Financial proposal should be submitted only through the e- procurement Portal.
c) Technical Proposal - Scanned copy in PDF file format, signed on each page. The proposal should be as
per the Technical Proposal format provided in SECTION VI : Technical Proposal
d) Financial Proposal should be filled online only.
e) Conditional proposals shall not be accepted. If any clarification is required, the same should be
obtained before submission of the bids.
f) Any alteration, erasures or overwriting should be valid only if the person or persons signing the bid
initial them.
g) Bidders are advised to upload the proposals well before time to avoid last minute issues.
h) The bid has to be submitted only through online through (https://mptenders.gov.in) website. No
physical submission of bids would be acceptable.
TERMS AND CONDITIONS GOVERNING THE CONTRACT
I. Letter of Award & Signing of Agreement
a) The selected bidder shall be issued a Letter of Award (LoA) by MPSEDC, Bhopal. The selected
bidder shall accept the Letter of Award unconditionally within seven (7) days from the date of
issue of the LoA.
b) Upon acceptance of the LoA, the selected bidder shall be required to sign up an agreement
with MPSEDC Bhopal on a e-stamp of Value 0.25 % of Contract Amount subjected to
minimum Rs. 500/- or maximum of Rs. 25,000/- as per Indian stamp (Madhya Pradesh
7
Amendment ) Act, 2015, cost of e-stamp are to be borne by Bidder, within seven (7) days of
acceptance of LoA, containing overall terms and conditions which shall be binding on the
firms.
c) The selected bidder shall commence the work of Internal Audit within seven (7) days from the
date of management letter.
d) If the selected bidder:-
Fails to accept the LoA within the prescribed time;
Fails to complete the contractual formalities within the stipulated time period; or
Fails to commence the work within the stipulated time period.
Then in such cases, MPSEDC, Bhopal reserves the right to cancel the offer made to such firm,
and may also blacklist the bidder. In such case the MPSEDC may at its discretion, offer the
contract award to the firm who has scored second highest marks at the rate quoted by the
selected bidder or rate quoted by him whichever is less
II. Resolution of Disputes
MPSEDC and the successful bidders shall make every effort to resolve amicably by direct informal
negotiation, any disagreement or dispute, arising between them under or in connection with the
contract.
Any dispute or difference whatsoever arising between the parties to this Contract out of or relating to
the meaning, scope, operation or effect of this Contract or the validity of the breach thereof, which
cannot be resolved, shall be settled through a process of arbitration as defined the provisions of the
Madhya Pradesh Madhyastam Adhikaran Adhiniyam, 1983 and the award made there under shall be
final and binding upon the parties hereto, subject to legal remedies available under the law. The
Arbitration proceedings will be held at Bhopal, Madhya Pradesh, India.
III. Legal Jurisdiction
All legal disputes are subject to the jurisdiction of Courts at Bhopal only.
IV. Right to terminate the process
MPSEDC, reserves the right to accept or reject any offer, and to annul the Tender process and reject all
bids at any time prior to award of contract, without thereby incurring any liability to the affected
vendor(s) or any obligation to inform the affected vendor(s) of the grounds for such action.
MPSEDC makes no commitments, explicit or implicit, that this process will result in a business
transaction with anyone. Further, this Tender does not constitute an offer by MPSEDC. The bidder's
participation in this process may result in MPSEDC selecting the bidder to engage in further
discussions.
8
SECTION- VI
TECHNICAL PROPOSAL
Covering Letter of the Technical Proposal (on the letterhead of the firm)
To, Dated--------
Chief General Manager,
MPSEDC, State IT Center,
Arera Hills, Bhopal
Sub: Submission of Technical Proposal
Ref: Tender for Appointment of the Chartered Accountant Firms as Internal Auditor for Audit of Madhya
Pradesh State Electronics Development Corporation Limited (MPSEDC) for the period of Two financial
Years (2019-20 & 2020-21) - (Tender No. - MPSEDC/ F&A/ Internal Auditor/ 2019/ 419/ Dt. 23.07.2019)
Having examined the Tender document, the receipt of which is hereby duly acknowledged, we, the
undersigned, offer to be the Internal Auditor for Audit of Madhya Pradesh State Electronics Development
Corporation Limited (MPSEDC) for the period of Two Financial Years (2019-20 & 2020-21), as required
and outlined in the TENDER. We attach hereto our responses to Technical requirements.
We confirm that the information contained in these responses or any part thereof, including the exhibits, and
other documents and instruments delivered or to be delivered to MPSEDC is true, accurate, verifiable and
complete. This response includes all information necessary to ensure that the statements therein do not in
whole or in part mislead the department in its short-listing process.
We fully understand and agree to comply that on verification, if any of the information provided here is
found to be misleading the selection process, we are liable to be dismissed from the selection process or
termination of the contract during the project, if selected to do so.
We agree for unconditional acceptance of all the terms and conditions set out in the Tender (and subsequent
corrigendum if any) document.
We hereby confirm that:
1. We have successfully executed work of similar nature and we have sufficient experience in handling the
work.
2. We further confirm that all chapters of the Tender document have been read, understood and signed and
there is no deviation/discrepancy.
3. We agree that you are not bound to accept any Tender response you may receive. We also agree that you
reserve the right in absolute sense to reject all or any of the products/ services specified in the Tender
response.
9
4. We hereby declare that our Firm is having unblemished past record and is not declared blacklisted or
ineligible to participate for bidding by any State/Central Govt., Semi-government or PSU due to
unsatisfactory performance, breach of general or specific instructions, corrupt / fraudulent or any other
unethical business practices.
5. Further, we hereby certify that:
We have read the provisions of the all clauses and confirm that notwithstanding anything stated
elsewhere to the contrary, the stipulation of all clauses of Tender are acceptable to us and we have
not taken any deviation to any clause.
We further confirm that any deviation to any clause of Tender found anywhere in the bid, shall stand
unconditionally withdrawn, without any cost implication whatsoever to the MPSEDC.
Yours Faithfully
[Authorized Signatory]
[Designation]
[Place]
[Date and Time]
[Seal & Sign]
[Business Address]
Note:
a) In absence of above declaration/certification, the response is liable to be rejected and shall not be
taken into account for evaluation.
b) Bidders not submitting the required supporting documents for fulfilling the criteria will be
summarily rejected without any further clarification.
Following are the particulars of our organization:
# Description Details
(To be filled by the bidder)
1. Name of the Firm
2. Official address
3. Phone No. and Fax No.
4. Headquarters Address
5. Phone No. and Fax No.
6. Web Site Address
7. Details of Firm Registration (Please enclose copy
of the Firm registration document)
8. Registration Number and Year of Registration
10
9. GST Registration No.
10. Permanent Account Number (PAN)
11. Yearly Turnover for the 3 financial year covering-
2015-2016
2016-2017
2017-2018
12. Name & address of the Bank along with IFS
Code of the Bank Branch
Note: Separate sheets may be attached wherever necessary for Technical evaluation
[Authorized Signatory]
[Designation]
[Place]
[Date and Time]
[Seal & Sign]
[Business Address]
Contact Details of officials for future correspondence regarding the bid process:
Details Authorised Signatory Secondary Contact
Name
Title
Address
Phone
Mobile
Fax
E-mail
It is hereby confirmed that I/We are entitled to act on behalf of our company and empowered to sign
this document as well as such other documents, which may be required in this connection.
Yours Faithfully
[Authorized Signatory]
[Designation]
[Place]
[Date and Time]
[Seal & Sign]
[Business Address]
11
SECTION VII
FINANCIAL BID
Financial Bid (on the letterhead of the firm)
Financial Bid for Appointment of the Chartered Accountant Firms as Internal Auditor for Audit of Madhya
Pradesh State Electronics Development Corporation Limited (MPSEDC) for the period of Two Financial
Years (2019-20 & 2020-21)
MP State Electronics Development Corporation Ltd
Tender No. - MPSEDC/ F&A/ Internal Auditor/ 2019/ 419/ Dt. 23.07.2019
Name of Bidder:
S. No. Particulars Year Unit Basic GST Total Amount
Rate (`) (`) (`)
(A) (B) (C) (D ) = (B) + (C)
1 2 3 4 5 6
1 Internal Audit of MPSEDC Year 1
Year 2
Total Amount Rs.
Total Amount in Words:
Terms & conditions:
1. The unit Basic Rates are excluding GST to be quoted in column no 4. GST as per applicable rates is
to be quoted separately in column no 5.
2. Price shall remain fixed for the entire contact period.
3. We agree to all other terms and conditions of the tender.
4. In case of any revision in GST rates, revised rates of GST shall be applicable at the time of billing.
5. Evaluation will be done on the Total Quoted Fees for TWO years.
6. Where there is any discrepancy between the rates in figures and words, words will govern.
Yours Faithfully
[Authorized Signatory]
[Designation]
[Place]
[Date and Time]
[Seal & Sign]
[Business Address]
12
Annexure-A
MPSEDC - INTERNAL AUDIT
SCOPE OF WORK
Following is the scope of work to be performed by the selected bidder:
Scope of Work shall include the verification of internal controls and process at all the
sections/departments of the Head Office. It includes internal controls in all the departments/sections
of the Head office in particular, the internal auditor shall be required to comment on following
aspects of working of different departments of MPSEDC. As a part of their role in the overall
Internal Audit System of MPSEDC, the scope of work of the internal auditors would broadly cover
(but not be limited to) the following areas:-
The scope of work of Internal Auditor shall include:
(1) Examination and evaluation of adequacy and effectiveness of the existing internal control and
risk management system at various operations and activities of the Corporation.
(2) Review of the accuracy and reliability of the Corporation, Accounting Records and financial
reports.
(3) Checking of both transactions and functioning of specific internal control procedures at
various departments /offices.
(4) Evaluation of adherence to legal and regulatory requirement and approved policies and
procedures.
(5) Evaluation of effectiveness of existing policies and procedures and give recommendations for
improvement.
(6) Identifying opportunities for cost saving and give recommendations for improving cost
efficiencies.
(7) Examine that resources are acquired economically, used efficiently and safeguarded
adequately.
(8) Suggest measure to add value, improve operational efficiency, risk management and internal
control systems.
The following functional/operational areas shall be covered by the internal auditor:-
Area Broad Audit Coverage
Finance & Accounts a. Cash and Bank Management
b. Fixed Assets Management
c. Funds Management
d. Receivable/Payable Management including balance confirmation
e. Loans and Advances
f. Budgeting
g. Ledgers Scrutiny
h. Bank Reconciliation statement
i. Investment (FD & Other Investment)
j. Verification FDR's and Receipt
13
Human Resources & a. Manpower Planning
Administration b. Recruitment, Selection and Induction
c. Training
d. Time Office Management
e. Payroll Management
f. Pay Bill
g. Entitlement Management Loans, Advances, Medical, LTC,
Uniform, Accommodation etc.
h. Engagement of Outside Agencies viz. Security Services
i. Retirement Benefits
Work shop & a. Vehicles / Equipment hiring process
Maintenance b. Vehicle/ equipment utilization/consumption
c. Disposal of vehicles/ equipment
d. Performance of equipment/ vehicles
Contract & Work order a. Soundness of system and procedures
Management b. Compliance with
(i) Management directives e.g. delegation of power and other
circulars
(ii) Statutory laws and rules
b. Adequacy and accuracy of estimates
c. Awarding of contract at the best economical rates
d. Awarding of the contract/ work order to competent parties
e. Adequacy of contract terms and conditions for safeguarding
Corporation's interest
f. Adherence of contract terms and conditions in respect of release of
advance payment, issuance of material etc.
g. Adequacy of insurance coverage
h. Accuracy and reliability of accounting
i. Adequacy of system of recovery / adjustment of material, scrap items
etc.
Pre-Tending Process a. Review of system of sanction and approval of proposal
b. Review of system of preparation, vetting and sanction of estimates
c. Review of pre-qualification process fixation and evaluation of
criteria
d. Review of process of NIT circulation, vetting and issuance of tender
documents
e. Review of process of pre bid conference
Tendering Process a. Review of system of tender receipts, tender opening
b. Review of system of tender evaluation
c. Review of process of preparation of comparative statement,
14
negotiation with contractor
d. Review of process of awarding of contract
e. Review of process of e-tender portal.
Processing / passing of a. Review of sanction and approval process of bills
running bills b. Review of system of adjustment on account of material, advance
amount etc.
c. Compliance of statutory requirement Deduction of TDS, Work
contract tax
d. Review of process of recovery / waiver off L.D charges
e. Review of process of settlement of deviations increase in scope of
work, increase in quantity etc.
f. Review of system of compliance of terms and conditions of the
contract e.g. taking of adequate insurance policies.
g. Review of reconciliation process
Full and final payment to a. Review of process of release of full and final payments sanction and
contractor & Other approval and appropriate Capitalisation.
Payment b. Review of process of claim settlement
c. Review of process of release of security deposits
Statutory compliance by a. Review of records and register maintained by the contractor
contractors Contract b. Review of license taken by the contractor license for the specified
Labour Regulation and jobs, actual labour deployed is within the limits specified in license
Abolition Act, etc.
Minimum wages Act, c. Review of challans and returns
Provident Fund d. Review of wage register
Main documents/ Records a. Contract/ work order files
for Review, Evaluation & b. Minutes of meeting of tender opening and evaluation committee and
Appraisal other relevant meetings
c. Tender Receipt register
d. Corporation circulars, notification etc.
e. Offer / bids submitted by parties / bidders
f. EMD register
g. Copy of the contract/work order
h. Ledger accounts of contractors / parties
i. Budget / Annual plan
j. Insurance policies taken by contractor
k. Material consumption register
l. Running bills of contractor
m. Abstract of Measurement books
n. Statutory records provident fund challans, return, register of wages
etc.
15
Procurement Management a. Soundness of system and procedures
b. Adequacy of offers/ quotation / bid system
c. Adequacy of estimates
d. Adequacy of purchase requisition in terms of quantity, rate/price of
item, need of an item, etc.
e. Compliance with:
i. Provision of delegation of power matrix and other circulars
issued by Corporate office.
ii. Procurement manual
iii. Purchase order terms and condition
f. Procurement at economical rates
g. Procurement from competent parties/ suppliers
h. Procurement is commensurate with the requirement
i. Timely procurement of material and reduction in overall lead time.
Vendor selection process a. Review of process of selection of procurement mode viz. open tender,
(tendering) limited tender or single tender etc.
b. Review of process of floating of enquiries
c. Review of process of receipt of offers/ bids
d. Review of tender / bid/ offer evaluation process
e. Review of system of comparative statement preparation, negotiation
with the vendor.
Store Management a. Effectiveness of inventory management
b. Adequacy of receipt and issue procedures
c. Adequacy of physical inventory controls
d. Accuracy and reliability of material accounting
e. Economical disposal of scrap material
f. Adequacy and reliability of records / documents
g. Adequacy and effectiveness of system of controlling and monitoring
of moving and non-moving inventory
h. Effectiveness of system and procedures for items issued on returnable
basis
i. Monitoring of Slow & Non Moving Item
Review of fixed Assets a. Review of Fixed Assets Register
b. Maintenance of Department wise Fixed Assets Register
c. Review of Physical Verification report of Assets & Stores
d. Review of Assets Identification No. (AIN)
e. Method of charging depreciation
f. Title deed of land & original invoice of other Fixed Assets
16
Review of Projects a. Review of Projects includes SWAN, IT Parks, State Data Centre,
Aadhaar projects, IT Incentives & SRDH (Parichay) & Other Projects,
based on respective Third Party Auditors Audit report.
b. Budgeting, Expenditure, tender & utilization.
Taxation a. Review of Income Tax Return & Liability or refund of Income Tax.
b. Status of Old cases of Income tax.
c. GST accounting & Returns and recommendations/advice.
d. Compliance related to Tax Deduction at Source (TDS), Tax
Collection at Source (TCS) and other laws.
e. Compliance related to Goods and Service Tax (GST) Act.
CAG 619 3&4 a. Review, CAG Balance Sheet Audit Para, Expenditure Audit Para, and
Performance Audit para as well as all compliances of GAG.
b. Reply on the Para's & follow-up the same.
Capitalisation a. Review and ensure that all running bills & assets after completion of
work to be capitalized in progress head of accounts & entered in fixed
assets register.
Project funds a. Monitoring of Project Funds & appropriate accounting of project as
per guidelines of Govt. of India & Govt. of M.P.
b. Ensure that all the transactions are correctly recorded into their
respective Project head.
Final accounts a. After financial year ending, preparation of annual accounts within
stipulated time, as per applicable Accounting Standards (ASs)
including consolidation of subsidiaries and joint ventures.
b. Ensure that all Accounting standards have been complied
appropriately.
Returns filing a. Review, monitoring and reporting regarding Income Tax, Provident
fund, TDS, GST and any others returns, if any.
Company Law a. Verification of Secretarial/CSR Compliances - To check all statutory
records registers including Minute Books and to see that accounting
effects of all the decisions taken at Board/ Committee
Meeting/General Meeting/Audit Committee in the Books of
Accounts.
b. Also, ensure that all the returns (compliance necessarily as per
ministry of Corporate affairs) have been filed.
17
Budgetary System a. Assists the management in evaluating and recommending
improvements to the organisation's budgetary arrangements.
b. Appropriate budgets are established that are consistent with the
organisation's strategic plan and financial forecasts
c. A suitable budgetary control framework has been developed
d. Management are provided with suitable expenditure reports
Others a. Ensure that all transactions are subject to their respective cost
category and cost centres
OTHER CONDITIONS
i. The Internal Auditors shall complete the internal audit on continuous basis. The
observations brought out in the report shall be initially discussed with the concerned
officers and based on satisfactory explanation/feedback provided, observations, if any,
of the report shall be dropped. The final audit on Haly Yearly basis shall be submitted
to MPSEDC positively within stipulated time.
ii. The Internal Audits should take into consideration the comments of Statutory
Auditors (Auditors opinion) and may discuss the same with Statutory Auditors as
well as with the management, as and when required to minimize the comments;
iii. The Internal Auditor shall verify the observations of Statutory & Govt. Auditors.
18
Annexure-B
MPSEDC - INTERNAL AUDIT
STRUCTURE OF AUDIT TEAM & ROLES AND RESPONSIBILITIES
(1) The selected bidder firm shall be required to depute audit team for the Internal audit of the Head Office
consisting of the below mentioned numbers.
Team Member Qualification No. (atleast) Number of days of
Deployment (atleast)
Team Leader FCA/ ACA 1 1 Day in a month
(Chartered Accountant)
Office Assistants Article (CA inter), CS Inter, 2 to 4 10 Days in a month
MBA (Finance) & B.Com/
M.Com with 1 year
experience
(2) Team leader should be responsible for the supervision and overall monitoring of the team. He shall
arrange all necessary information for the audit team from time to time, effectively supervise and
control the audit,
(3) The deployed Audit team, referred to as Auditor hereafter, shall be responsible for Carrying out the day
to day Internal Audit of the Corporate Office
(4) The Internal Audit staff will be authorized to review all areas of the organization and shall have full
and free access to all activities, records, property and personnel of the organization.
(5) The Team leader (CA) deployed shall be responsible for the overall coordination of the Internal Audit
function. He should ensure the work shall be as per the Scope of Internal Audit and completion of the
Audit as per the schedule.
(6) During the course of the audit there shall be regular meetings once in a month between the
management of the Company and the team leader of the audit team to discuss and review upon the
issues. He should also report to the management of the company on need basis.
(7) The selected bidder firm shall be required to report the outcome of their activities to the Chief General
Manager, Finance & Accounts.
(8) The Internal Auditor should be responsible for periodically evaluating the adequacy and effectiveness
of the system of internal control and the quality of performance in carrying out assigned
responsibilities throughout the Company.
(9) The Internal Auditor shall be obliged to maintain complete secrecy and not to disclose any matter
which comes to its knowledge while conducting Internal Audit, to any third party, which may affect
the interest of the Company adversely.
(10) The appointment of audit team and team leader shall be made on the basis of the credentials,
experience and capability as furnished by the participating firm for the purpose of evaluation along
with the technical proposal.
19
Annexure-C
UNDERTAKING BY THE BIDDERS
(This undertaking is to be submitted along with Technical Bid and on a non-judicial stamp paper of
Rs.100.00 (One Hundred) duly notarized
To,
Dated.......
Chief General Manager,
MPSEDC, State IT Centre,
Arera Hills, Bhopal
Ref: Tender for Appointment of the Chartered Accountant Firms as Internal Auditor for Audit of Madhya
Pradesh State Electronics Development Corporation Limited (MPSEDC) for the period of Two financial
Years (2019-20 & 2020-21) - (Tender No. - MPSEDC/ F&A/ Internal Auditor/ 2019/ 419/ Dt. 23.07.2019)
This undertaking is submitted in respect of the appointment of Internal Auditors of MPSEDC, Bhopal, in
response to the tender document- (MPSEDC/ F&A/ Internal Auditor/ 2019/ 419/ Dt. 23.07.2019) issued by
MPSEDC, Bhopal and subsequent amendment thereof.
We hereby confirm that:
We have never been blacklisted by any Government Department or Public Sector Undertaking of any
State Government in India or the Government of India for practicing in India.
We have no pending or contemplated legal suit or criminal cases on grounds of moral turpitude or for
violation of any other law in force.
We understand and agree that if the information mentioned above is found to be incorrect at any stage of this
Bidding Process; our Bid shall be considered as non-responsive and rejected accordingly.
If this undertaking is found to be incorrect post the issue of LoA, then such LoA issued shall be cancelled and
the contract terminated, without any liability to either Party.
We further understand and agree that if the Audit is awarded to us and this undertaking is found to be
incorrect after execution of the work, the order of appointments stands terminated, without any liability to
either Party.
Yours Faithfully
[Authorized Signatory]
[Designation]
[Place]
[Date and Time]
[Seal]
[Business Address]
20
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