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Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited, Bhopal - Madhya Pradesh
September, 10th 2018
        TENDER SPECIFICATION
          NO.MD/MK/04/592
      (DUE FOR OPENING ON 20.09.18)
   APPOINTMENT OF CHARTERED ACCOUNTANT FIRMS AS AN
  INTERNAL AUDITOR OF FIELD OFFICES OF MPMKVVCL FOR
         AUDIT BLOCK YEAR 2015-16 TO 2017-18

           CHIEF GENERAL MANAGER (PROC),
      M.P.MADHYA KSHETRA VIDYUT VITARAN CO. LTD.,
NISHTHA PARISAR, BIJLINAGAR, GOVINDPURA, BHOPAL-462023
        PHONE NO.(0755)-2678325, 2602033-36
     FAX NO. (0755)- 2589821, EMAIL- agmpur2@gmail.com
                 WEBSITE:WWW.MPCZ.CO.IN,
          CIN NUMBER:U40109MP2002SGC015119
                                                         0
Contents
1.   BACKGROUND -------------------------------------------------------------------------------------------------------------- 3
2.   OBJECTIVES OF THIS ASSIGNMENT ------------------------------------------------------------------------------------ 3
3.   TERM OF AGREEMENT (CONTRACT PERIOD) ----------------------------------------------------------------------- 3
4.   BIDDING PROCESS --------------------------------------------------------------------------------------------------------- 4
5.   DUE DATES ------------------------------------------------------------------------------------------------------------------ 4
6.   SALE OF TENDER DOCUMENT ---------------------------------------------------------------------------------------- 4-5
7.   QUALIFICATION CRITERIA ---------------------------------------------------------------------------------------------- 5-6
8.   INFORMATION TO BIDDERS ----------------------------------------------------------------------------------------- 6-15
       8.1    Submission of Proposal
       8.2    Consortium
       8.3    Language of the Proposal
       8.4    Validity of Proposal
       8.5    Earnest Money Deposit (EMD)
       8.6    Examination of the Tender Document
       8.7    Evaluation of the Proposals
       8.8    Evaluation of the Financial Proposal
       8.9    Selection Process
       8.10 Proposal Currency
       8.11 Performance Security Deposit
       8.12 Pre-Bid Conference
       8.13 Clarification/ Further Information
       8.14 Amendment to the Tender Document
       8.15 Right to Accept/ Reject Any or All Bids
       8.16 Association with Individual Consultants
       8.17 Commencement of Services
       8.18 Co-ordination and Follow up to Audit Work
       8.19 Suspension of Services
       8.20 Payment Schedule/ Procedure for releasing of the Fees
       8.21 Submission of Bills
       8.22 Penalty
       8.23 Performance Standards
       8.24 Escalation
       8.25 Disputes
9.   SCOPE OF WORK ----------------------------------------------------------------------------------------------------- 15-36
       9.1    Background
       9.2    Organization Structure
       9.3    Offices for Internal Audit
       9.4    Structure of Audit Party
                                                                                                                             1
       9.5   Mandates for the Bidder
       9.6   Terms and Conditions
       9.7   Office Space and Stationery
       9.8   Periodic Assessment
       9.9   Confidentiality
       9.10 Terms of Reporting
       9.11 Scope of Work
       9.12 Scope of Expenditure and System Audit
       9.13 Scope of LT Revenue Audit
       9.14 Scope of HT Revenue Audit
       9.15 Verification of Stores
       9.16 Internal Audit of Books of Accounts at Accounting Units
10. MINIMUM FEES ----------------------------------------------------------------------------------------------------------- 37

ANNEXURE -1 List of Groups for Which Bids are Required ------------------------------------------------------ 38-48
ANNEXURE -2 Format of Price Bid ------------------------------------------------------------------------------------- 49-50
ANNEXURE -3 Covering letter for submission of Bids ----------------------------------------------------------------- 51
ANNEXURE -4 Letter for Submission of Cost of tender document and EMD ------------------------------------ 52
ANNEXURE -5 Bidders Background and Qualifications ­ Criteria for Technical Evalution --------------- 53-54
ANNEXURE -6 Undertaking is to be submitted along with the Technical Bid ----------------------------------- 55
ANNEXURE -7 Format for Clarification in Tender Document -------------------------------------------------------
566
ANNEXURE -8 Composite Report format for the Audit of Auditee Office ----------------------------------- 57-58
ANNEXURE -9 Schedule of Opening of Financial Bids ----------------------------------------------------------------- 59
ANNEXURE -10 Indicative Performance Parameter of the work of Internal Auditor -------------------------- 60
ANNEXURE -11 Certificate of Completion of Internal Audit ----------------------------------------------------- 61-67
ANNEXURE -12 Proforma of Bank Guarantee for Contract Performance ------------------------------------ 68-69
ANNEXURE -13 Agreement ---------------------------------------------------------------------------------------------- 70-73




                                                                                                                             2
1. BACKGROUND
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL) Bhopal,
one of the successor Companies of MP State Electricity Board, with its head office at Nishtha
Parisar, Govindpura, Bhopal is a Power Distribution Company incorporated under the provisions of the
Companies Act, 1956(now companies Act, 2013).MPMKVVCL, Bhopal (herein after referred to as a
Company) is engaged in the distribution & retail supply of electricity to its consumers. It has its office of
operations spread in the specified area through 2 regional offices, 15 Circles, 49 divisions and about 342
Distribution centers/ Zones. The List of Offices is attached in Annexure 1. The Management of the
Company intends to appoint Internal Auditors, by engaging the Firms of Chartered Accountants with a
view to bring in a professional approach in the Internal Audit of the Power Distribution business in
Madhya Pradesh.

2. OBJECTIVES OF THIS ASSIGNMENT
        Establish an effective internal audit and control system.
        Achieve the objectives specified in the Corporate and Operational Plans.
        Focus on regular Internal Audit of the office(s) to assess, review, recommend and comment in
        respect of effectiveness and efficiency of accounting, financing, operation & maintenance
        functions and procedural compliance at its Offices of Operations ;
        To make management aware, as soon as practical and at an appropriate level of responsibility, of
        material weaknesses in the design or operation of accounting and internal control systems, that
        may have come to the notice of auditor in course of audit.
        Compliance to the applicable Provisions, Orders and Rules Framed under the New Companies
        Act, 2013 that require effective Internal Control Procedures in a Company.
        To ensure that requirements under Companys Auditor Report (CARO) regarding Internal
        Control and Internal audit are complied with, in a manner that also assists managements
        objective of ensuring, as far as practicable, orderly and efficient conduct of its business. This shall
        also include adherence to management policies, safeguarding of assets, Prevention and detection
        of fraud and error, accuracy and completeness of the accounting records and timely preparation of
        reliable financial information.
For the above said purposes, the Company hereby intends to initiate the process of selection of Chartered
Accountant Firms as "Internal Auditors for the Circle/Regional Offices " (herein after referred to as "CA
Firm" or "Auditors" or "Bidder"). Thus, the Company is issuing this Tender document inviting the
interested and eligible CA Firms to purchase the tender document and to participate in the Bidding
Process for the selection of Internal Auditors at the Regional/ Circle level.

3. TERM OF AGREEMENT (CONTRACT PERIOD)
CA Firm would be appointed as Internal Auditors of field offices for a period of Eighteen months (18
Months) commencing from the date of acceptance of LOA. The Company reserves the right to
appoint another CA firm to get the work done in the event of failure of the selected CA Firm to
                                                                                                             3
commence the work within the prescribed time or terminate the Agreement any time before the
expiry of the Contract Period if the progress of work is not commensurate with the time completion
schedule or the audit is not found satisfactory to the objectives of the assignment or for any other
reasons seems fit to the Company.

4. BIDDING PROCESS
The Bidding process would be a two stage process and have the following Stages:
Stage I
     Issuance of tender documents to the Bidders
     Pre Bid conference
     Submission of Technical Proposal and Financial Proposal.
     Opening of Technical Proposal.
     Short Listing of Qualified Bidders.
Stage II
     Opening of Financial Proposal of Qualified Bidders
     Evaluation of Financial Proposal
     Issuance of Letter of Award
     Signing of Agreement
     Execution of Internal Audit Assignment

5. DUE DATES
           S.No.                      Activities                              Due Dates
             1     Issuance of Tender Document                                     4th Sept 2018
            2      Pre bid conference                                              11th Sept 2018
            3      Last date for receiving queries                                  14st Sept 2018
            4      Last date for sale of Tender Document                19th Sept. 2018 (5:00 pm)
            5      Last date of submission of Bid (Bid Deadline)       20th Sept. 2018 ( 3:00 pm)
            6      Opening of Technical Proposal                       20th Sept. 2018 ( 4:00 pm)
            7      Opening of Financial Proposal (Tentative)                        29th Sep 2018
            8      Issue of Letter of Award (Tentative)                             15th Oct 2018
            9      Commencement of Audit (Tentative)                                 1st Nov 2018

6. SALE OF TENDER DOCUMENT
The tender document is available on the Companys website. The Bidder(s) may download the tender
documents from the website, and those prospective Bidders who have downloaded the tender document
from the official website of the Company and have not paid the amount of Rs. 2,000/- only (Rupees
thousand only) plus applicable GST as the cost of the tender document, shall be required to submit a bank
draft for Rs 2,000 only (Rupees Two thousand only) plus applicable GST (Non-refundable) drawn on a
                                                                                                       4
scheduled bank in favor of "Accounts Officer, HOAU,MPMKVV Co. Ltd." Payable at Bhopal along
with the technical bid. Cheques will not be accepted.
This bank draft of Rs 2,000 only (Rupees Two thousand only) plus applicable GST shall be kept in
Envelope-1.Failure to submit the tender document fee as mentioned above shall lead to rejection of the
Bid.
Tender documents can also be purchased online and download from main portal
http://www.mpeproc.gov.in by making online payment for the prescribed non-refundable tender
document fees. Only in case if the tender is dropped without opening, the tender fees shall be
refunded after deduction of necessary portal charges. Manual purchase of tender is not allowed.

7. QUALIFICATION CRITERIA
   7.1 The Bidder should be a partnership firm, registered under Partnership Act, 1932 or a Consortium
       of not more than two (02) such partnership firms, with one of the firm acting as the Consortium
       Leader. A Bidding Consortium can participate in the Bidding Process for the assignment if any
       Member of the Consortium has purchased/downloaded the tender document.
   7.2 The Bidder or the Consortium Leader should fulfill the following criteria to be eligible:
           The Bidder must be in operation for at least ten (10) years. In case of Consortium, one firm
           must be in operation for at least ten (10) years. The period of 10 years will be considered
           from the date of registration of the firm. Copy of partnership deed to be provided by the
           Bidder for verification.
           The Bidder must have atleast 5 CA partners, minimum 3 partners of the firm should be FCA
           and at least one partner must be DISA qualified.
           The Bidder should not have less than Rs 50 lakhs professional receipts in preceding financial
           year. In case of Consortium, at least one firm should not have less than Rs 50 lakhs
           professional receipts in the preceding financial year.
           The bidder shall require to submit last audited/certified financial statement along with the
           offer. In case, latest audited financials i.e. for FY 2017-18 are not available, duly certified
           CA certificate may be provided.
           The Bidder must have its Head Office at Bhopal or Gwalior or the location of the Circle
           office of the group for which the bidder is submitting his bid.
           There should be no legal suit / Criminal case pending or contemplated against the Bidder on
           the grounds of turpitude or for violation of any of the law in force.
       Date of applicability of qualifying criteria and other parameters, unless otherwise
       stated expressly, shall be 31st August 2018.

   7.3 Information related to above mentioned criteria along with the covering letter to be provided in
       Annexure 3-6 and must be submitted along with the Technical Proposal.
   7.4 MPMKVVCL, reserves the right to verify / scrutinize any of the above mentioned information for
       accuracy in case of credible evidence obtained for any false declaration, MPMKVVCL reserves

                                                                                                        5
    the right to take appropriate action as it deems fit in addition to cancel / terminate the contract or
    disqualify such firm or firms.

8. INFORMATION TO BIDDERS
  8.1 SUBMISSION OF PROPOSAL
        Single Stage ­ Three Envelopes bidding process shall be followed for the selection of the
        CA Firms
          o   for Internal Audit at the Regional/ Circle/Division/DC Level; and
          o   HT Revenue Audit.
        As the area of operation of Company is spread widely, the various offices in each Circle are
        listed in Annexure 1.
        Revenue Audit of all the DCs shall be done for a block period of 3 years i.e. FY 2015-16 to
        FY 2017-18.
        Further, the System and Expenditure Audit for all the offices shall be done for a block period
        of 2 years i.e. from FY 2016-17 to FY 2017-18. The Scope of Work is annexed in Clause
        9.11.
        As the Books of accounts are maintained at all the RAO Offices of the Company, the audit
        for the Books of Accounts need to be done Quarterly for the current financial year i.e. FY
        2018-19. The Scope of Work is annexed in Clause 9.11.
        The Regional Office has Store and Civil Office also. The Physical Verification of Store is to
        be done once in a year. The Scope of Work is annexed in Clause 9.11.
        The appointment of Circle Level CA Firms shall be for a particular group, i.e. for all the
        offices in that Group. The Internal Auditor shall be responsible for the audit of all the offices
        comprising in the group & listed in Annexure 1, (Circle office, Division Office, RAO offices,
        Store and Zones/D.C.s etc.) as per the Scope of Work.
        Separate Proposal needs to be submitted in case the bidder opts to bid for more than
        one Group. Each separate proposal must carry its EMD and must be submitted in
        separate envelopes.
        The Bids shall be opened as per the schedule mentioned in Annexure 9. If a bidder bids for
        more than one group and selected for one Group then their bid for the other Groups shall not
        be opened as NO bidder shall be appointed as Internal Auditor for more than one (1) Group.
        Any CA Firm which is currently working as the Internal Auditor for any Circle of
        MPMKVVCL is not eligible to participate in the tender. However If the present assigned
        work of internal audit is completed by the CA firm then a self-declaration shall be given by
        the firm regarding completion of work to participate in this tender. The declaration given by
        the firm will be evaluated by the MPMKVVCL.
        No partner of the firm should be employed or associated with MPMKVVCL in any capacity.

                                                                                                        6
        Envelope 1 shall contain the Bank draft of Rs. 2,000/- plus applicable GST in-case the
        Bidders who have downloaded the tender document from the official website of the Company
        and have not paid the amount of tender document. In case the Bidder has online paid
        Rs. 2000/- plus applicable GST towards the cost of the tender document, the bidder shall
        submit the copy of the receipt of the same in Envelope 1. The Earnest Money Deposit (herein
        after referred to as EMD), shall be placed in the same envelope.
        All the interested and eligible CA firms should submit their technical proposals in the
        prescribed format given in Annexure 5 for each Group. Each copy being physically
        separated, bound, sealed and labeled as "Envelope 2 - Bid for appointment as Internal
        Auditor for the Group ...... (Circle 1...... and Circle 2.....) - Technical Proposal". The
        bid which do not contain the requisite information or is not supported by the supporting
        documents will be treated as non-responsiveness, and its financial proposal shall remain un-
        opened.
        The bidder has to quote their rates online only in Annexure 2 to be kept in envelope "3 and
        upload online as per key dates. Please note that, the Schedules of price bid Annexure 2, i.e.
        Financial bid (Envelope-3) will not be accepted physically. In case Envelope-3 is submitted
        physically the bid will be rejected. The bid of the eligible bidder shall be opened online as per
        key dates.
        All these envelopes i.e. Envelope-1 & 2 shall be placed in an outer envelope and sealed. The
        outer envelope shall bear the submission address, name of the bidder and clearly marked "for
        appointment of the Internal Auditors for the Group ...... (Circle 1...... and Circle
        2.....)".
        The all copies of the Technical Proposal must be signed by the partner of the Bidder /
        Consortium Leader.
        Online bidders are required to sign their bids online using CLASS-II or CLASS-III DIGITAL
        CERTIFICATE only.
        All the Technical Proposals along with the EMD must be submitted at a drop box on
        ............ addressed to The Chief Finance Officer, O/o MD (CZ), MPMKVVCL,
        Nishtha Parisar, Govindpura, Bhopal on or before the due date for submission of the
        Proposals mentioned elsewhere in the Tender document.
        The envelopes containing the Tender Fee & EMD will be opened on the specified date and
        time in the presence of Bidders or their authorized representatives who choose to attend.
        Once the technical evaluation has been done the Company shall intimate the schedule of
        opening of Financial Proposal of the firms who have qualified the technical evaluation.


8.2 CONSORTIUM
Only the Consortium of Chartered Accountant Firms is allowed. A Memorandum of Understanding
among the Consortium Firms needs to be entered specifying which firm is the Consortium Leader, and


                                                                                                       7
this document is to be submitted with the Technical Proposal. Moreover, one firm can be a part of only
one consortium. Firms cannot enter different consortiums for different groups.
The Team leader should ensure that all the deliverables are completed on time and proper checks
should be in place. Team leader should be accountable for all the deliverables and quality checks. All
Internal Audit Reports/ Deliverables or any other correspondence shall be sealed and signed by the any
Partner of the Consortium Leader Firm only. Any report/ correspondence by any other firm which is
signed or sealed by any other firm shall not be entertained by MPMKVVCL, Bhopal.
Further, the only point of contact for MPMKVVCL shall be Consortium Leader. All communications
shall be done only between the Company and the Consortium Leader.
8.3 LANGUAGE OF THE PROPOSAL
The PROPOSAL prepared by the Bidder and all correspondence and documents related to the Tender
document and PROPOSAL exchanged by the Bidder and MPMKVVCL shall be written in English.
Any printed literature furnished by the Bidder may be written in another language as long as such
literature is accompanied by its translation in English, in which case, for purposes of interpretation of
the tender document, the English translation shall govern.
8.4 VALIDITY OF PROPOSAL
The Bid shall remain valid for a period of 180 days from the date stipulated for submission of
proposal. MPMKVVCL reserves the right to request extension of the Bid validity for an additional
period of three (3) months, if necessary.
8.5 EARNEST MONEY DEPOSIT (EMD)
All interested bidders are expected to submit, along with their Bid, Earnest Money Deposit (EMD) as
per the table given below, in the form of DD / Bankers Cheque, drawn on any scheduled bank in
favour of Sr. Accounts Officer (HOAU), MPMKVVCL, payable at Bhopal.
Value of Service inclusive GST                                                     Amount of EMD
Upto Rs. 10,000                                                               Rs 500
Above Rs 10,000 and up to Rs 2.5 Lakh                                         Rs 2,500
Above Rs 2.5 Lakh and up to Rs 3 Lakh                                         Rs 5,000
Above Rs 3 Lakh and up to Rs 7 Lakh                                           Rs 10,000
Above Rs 7 Lakh and up to Rs 15 Lakh                                          Rs 15,000
Above Rs 15 Lakh and up to Rs 25 Lakh                                         Rs 20,000
Above Rs 25 Lakh and up to Rs 35 Lakh                                         Rs 30,000
Above Rs 35 Lakh and up to Rs 50 Lakh                                         Rs 40,000
Above Rs 50 Lakh and up to Rs 75 Lakh                                         Rs 60,000
Above Rs 75 Lakh and up to Rs 100 Lakh                                        Rs 80,000
Above Rs 100 Lakhs                                                            Rs 1,00,000



                                                                                                       8
The EMD of the unsuccessful bidder shall be returned not later than sixty (60) days after the expiry of
the period of Bid validity as specified above.
However, EMD of Successful Bidder shall be returned after the submission of the Security Deposit
and Execution of the work.
 8.6 EXAMINATION OF THE TENDER DOCUMENT
The prospective bidders are expected to examine the instructions, forms, terms and specifications in
the Tender Document. Failure to submit any information as required in the tender document will be at
bidders own risk and may lead to the rejection of the bid. Further, during the evaluation of proposals,
MPMKVVCL, Bhopal may at its discretion, ask the Bidders for clarification or any further documents
for its proposal. No response or inadequate response to the clarifications asked for may lead to the
disqualification of the bidder.
 8.7 EVALUATION OF THE PROPOSALS
     Preliminary Scrutiny:
       Preliminary scrutiny of the technical proposal will be made to determine whether they are
       complete, whether the documents have been properly signed, and whether the bids are
       generally in order. Bids not conforming to such preliminary requirements will be prima facie
       rejected.
     Fulfillment of Minimum Qualification Criteria:
       The proposals will be examined to ascertain whether they fulfill the minimum qualification
       criteria as prescribed in Clause 7. The proposals of those applicants who do not fulfill
       minimum qualification criteria shall not be taken into further consideration/ detailed evaluation.
     Waivers:
       MPMKVVCL shall waive minor infirmity; nonconformity or irregularity in a proposal, which
       does not constitute a material deviation, provided such waiver does not prejudice or affect the
       relative ranking of any Applicant.
     Detailed Evaluation of Technical Proposals:
       Bids found to be substantially responsive after the preliminary scrutiny and fulfillment of the
       minimum qualification criteria will be taken up for detailed evaluation. Criteria for evaluation
       of technical have been specified in Annexure 5 of this document.
     Technically Qualified Applicants:
       All the Applicants who fulfill minimum qualification criteria i.e. number of years of operation,
       number of partners, turnover requirement and number of branches (Details in Annexure 5) will
       be declared as technically qualified. The Financial Bids of only the technically qualified
       Applicants will be opened for further processing.
 8.8 EVALUATION OF THE FINANCIAL PROPOSAL
The Financial Proposal of the technically qualified Applicants will be opened.

                                                                                                       9
   Fixed Price Bids:
   Only the fixed price financial proposal indicating Total Quoted Fees for the block period will be
   considered. The price shall be inclusive of all T.A/ D.A., Lodging, Boarding, and out of pocket
   expenses. GST as applicable will be paid extra. No payment other than this shall be paid for the
   deliverables as specified in the tender document. Format for submission of financial proposal is in
   Annexure 2.
   Arithmetical errors will be rectified as follows:
   If there is a discrepancy between words and figures, the amount in words will prevail. However,
   if the amount quoted in words is not legible or not clear in meaning, the MPMKVVCL may
   consider the amount quoted in figures as final. Such offers may also be rejected.
8.9 SELECTION PROCESS
   The bidder who fulfills the minimum technical criteria whose financial proposal will be the
   lowest for a particular Group, shall get selected for the appointment as the Internal Auditors of
   the Group, subject to fulfillment of contractual formalities. In case two or more bidders quote the
   same fees then those proposals where fees is quoted the same shall be further evaluated on
   technical criteria and marks mentioned in Annexure -5 Bidders Background and Qualifications ­
   Criteria for Technical Evaluation and the bidder who scores the maximum marks in the technical
   criteria will be selected in such a case.
   The selected bidder shall be issued a Letter of Award (LOA) by MPMKVVCL, Bhopal and, upon
   acceptance of the LOA by such selected bidder, will be appointed as an Internal Auditor of the
   Group.
   The selected bidder shall accept the Letter of Award unconditionally, within fifteen (15) days
   from the date of receipt of the LOA.
   Upon acceptance of the LOA, the selected bidder shall be required to sign up an agreement with
   MPMKVVCL on a non-judicial stamp paper of Rs. 500/-, at Bhopal within fifteen (15) days of
   acceptance of LOA, containing overall terms and conditions which shall be binding on the firms.
   Draft agreement shall be made available on the date of pre bid meeting. Cost of the stamp and
   revenue stamp affixed on the agreement shall be borne by the applicant. MPMKVVCL, Bhopal
   shall not reimburse these costs.
   The selected bidder shall commence the work of Internal Audit as per the audit program issued by
   MPMKVVCL, after the signing of the agreement.
   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.
   If the selected bidder:
       o   Fails to accept the LOA within the prescribed time;
       o   Fails to complete the contractual formalities within the stipulated time period; or
       o   Fails to commence the work as per the program.






                                                                                                   10
     Then in such cases, MPMKVVCL, Bhopal reserves the right to cancel the offer made to such
     firm, forfeit its EMD and may also blacklist the bidder.
     In such a situation, MPMKVVCL reserves the right to award the work of Internal Audit to the
     next lowest evaluated bidder.
8.10 PROPOSAL CURRENCY
Prices shall be quoted in Indian Rupees only.
8.11 PERFORMANCE SECURITY
The successful bidder needs to submit a Performance Security equivalent to ten percent (10%) of the
Contract Value in the form of a bank guarantee or a DD drawn on a scheduled bank in favour of AO,
HOAU, MPMKVVCL, payable at Bhopal, within fifteen (15) days from the date of acceptance of the
LOA by the Successful Bidder which shall be refunded within one year after the successful completion
of the assignment. Format of Bank guarantee is annexed as Annexure 12.
Failure to commence the audit as per the audit program issued by MPMKVVCL shall entail the
forfeiture of performance security and cancellation of the LOA.
8.12 PRE BID CONFERENCE
Interested Bidders may attend the pre-bid conference on 11st Sept, 2018 at 15:00 Hrs (3:00 pm) at the
following address: Chief Finance Officer, O/o MD (CZ), MPMKVVCL, Nishtha Parisar,
Govindpura, Bhopal, for clarification of any doubts of the prospective bidders regarding the Tender
document. The prospective bidders may attend such meetings through their authorized representatives.
Those prospective bidders who may find themselves unable to attend the pre-bid clarification meeting
in person may send their queries either by post or by courier at the above mentioned address.
8.13 CLARIFICATION/ FURTHER INFORMATION
The Bidders may seek clarification on the tender document by making a request in writing, submitted
to the person addressed below, either in person, or through registered post / courier, or through email,
in the format prescribed in Annexure 7 till the last day of sale of the tender documents as per the
details provided below:
              Designation : Chief Financial Officer
              Address      : O/o MD (CZ)
                              MPMKVVCL, Nishtha Parisar,
                              Govindpura, Bijli Nagar, Bhopal.


MPMKVVCL would duly acknowledge the queries received by post and provide response to the
clarifications sought by the prospective applicant at its discretion.
8.14 AMENDMENT TO THE TENDER DOCUMENT
At any time prior to the last date for sale of the tender document, MPMKVVCL, Bhopal may amend
the tender document by issuing necessary addendum. Addendum issued shall be part of the tender
document.

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The addendum will be uploaded on the official website of the MPMKVVCL.
Such amendments, clarifications, etc. shall be binding on the Bidders and will be given due
consideration by the Bidders while they submit their Bid.
In order to give Bidders reasonable time to take the above amendments into account in preparing their
Bid, MPMKVVCL may, at its discretion, extend the Bid Deadline.
8.15 RIGHT TO ACCEPT/REJECT ANY OR ALL BIDS
MPMKVVCL, Bhopal reserves the right to accept or reject any or all the proposals, or cancel the
bidding process and reject all the proposals at any time prior to the award of contract, without thereby
incurring any liability to the affected bidders or any obligation to inform the affected bidders of the
grounds of such action.
8.16 ASSOCIATION WITH INDIVIDUAL CONSULTANTS
The Bidders may associate individual consultants for the technical guidance in the field or for any
other specialized work, if required and a copy of the agreement to the effect defining the scope of work
etc. should be submitted along with the application. The cost of the hiring the individual consultants
shall be borne by the bidder himself, MPMKVVCL, Bhopal shall not be liable for any work of the
consultant during the course of audit.
8.17 COMMENCEMENT OF SERVICES
After signing the agreement the selected bidders shall commence the performance of services as per
the program issued by MPMKVVCL.
8.18 CO-ORDINATION AND FOLLOW UP OF AUDIT WORK
Additional Director (F&A)/ DGM (Audit) O/o MD (CZ) MPMKVVCL, Bhopal will be In-charge
of co-ordination of audit work. The successful bidder, after award of work is required to approach the
officer concerned on all matters for smooth and effective conduct of audit. The term coordination
covers the entire gamut of activities viz., finalization of audit programme, discussions and acceptance
of deliverables, settlement of payment, dispute resolution as per the contract terms etc.
8.19 SUSPENSION OF SERVICES
MPMKVVCL, Bhopal reserves the right to suspend the selected bidder by a written notice and
suspend all payments to the selected bidder, if the selected bidder fails to perform their obligation in
the assignment.
8.20 PAYMENT SCHEDULE/ PROCEDURE FOR RELEASING OF THE FEES:
The payment to the Internal Auditors at the Circle Level shall be made by the Chief Finance Officer,
MPMKVVCL, Bhopal.
     Payment Schedule for the Audit Fees:

     o   The bills will be submitted quarterly as per the audit program issued by MPMKVVCL along
         with the certificate of completion as annexed in Annexure 11. After submission of the same,
         80% payment of the bill will be made after deducting all mandatory taxes which will be
         based on the following:-
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             A copy of all reports along with All Certificates of completion of internal audit as
             annexed in Annexure 11 along with the invoice.


    o   The balance 20% of the fees may be released within three months from the date of the
        payment released as above.

    o   The "date of completion" shall be reckoned from the date of submission of final audit report
        to Internal Audit Department, O/o MD, MPMKVVCL, Bhopal
    o   No interest, claim or penalty etc. would be payable by MPMKVVCL in case of any delay in
        payment beyond stipulated time.

    o   Advance of Rs. 1,00,000/- (One Lakh) or 25% of the estimated bill for the first quarter,
        whichever is lower may be given to the Internal Auditors subject to submission of Bank
        Guarantee of the equivalent amount valid for one year and may be renewed if required. The
        advance shall be adjusted with the payment of the first bill submitted by the Internal Auditor.
        Also, the bank guarantee shall be released after complete adjustment of the advance amount
        paid.

8.21 SUBMISSION OF BILLS
    The payment as per payment terms above shall be released by the Dy. General Manager
    (CBPU), O/o MD MPMKVVCL Bhopal within reasonable time from the date of receipt of the
    bill or as per queue whichever is later. The bill should be submitted as per following instructions:
    o   The bill should be submitted in triplicate to Chief Finance Officer O/o MD MPMKVVCL.
        Bhopal with the Annexure 11 in soft & hard copy.
    o   The bill should be submitted on quarterly basis, at the end of the quarter for all the reports
        submitted during that quarter.
    o   If CA Firm fails to perform the audit of any office as per the scheduled programme, the list of
        such offices should be separately enclosed along with the bill.
    After satisfactory completion of the work, the bill shall be passed and forwarded to the Dy.
    General Manager (CBPU), MPMKVVCL, for pre-auditing the bill and arranging payments
    within reasonable time as per queue.
8.22 PENALTY
  If the Internal Auditor firm or partner thereof is found guilty of gross negligence, lack of duty of
   care, misrepresentation and misstatement of facts, hiding the facts, falsification, using or giving
   the details gathered during the audit assignment to other parties without permission of the
   competent authority, non-observation of instructions given by the competent authority,
   unauthorized retention of records of the Company, violating the terms and conditions of this
   assignment, un authorized changes in the records of the Company, including malafied practices
   or any other cognizable offence or breach, the Internal Auditor firm will be punishable with any
   or all following consequences:


                                                                                                     13
        a. Removal from the assignment of internal audit with immediate effect/ from the date
           specified.
        b. Removal from any other assignment with immediate effect/ from the date specified given
           by the competent authority.
        c. Ban from accepting the future assignment of the Company for the period as specified.
        d. Any other action deemed appropriate by the competent authority.
    Penalty for Delay in Completion of work as per Schedule:
    o   If the work is not completed within stipulated time by the bidder (i.e. as per the audit program
        issued by MPMKVVCL) and thereafter submission of report within 15 days, then penalty
        shall be imposed @ 0.5% per week or part thereof subject to maximum of @ 10% of total
        fees from the due date of submission of report.
        However, in the event of non-completion of the work in the stipulated time period due to
        unforeseen conditions, the auditor firm will be required to apply for grant of additional time
        period. Request of extension of time period desired by the auditor firm shall be considered
        only if reasonable and justified ground exists at the sole discretion of Chief Finance Officer
        MPMKVVCL, Bhopal.
    o   If the bidder is unable to complete the work and also not able to justify the ground of non-
        completion of the work within the stipulated time period, then it may lead the contract liable
        to be terminated.
8.23 PERFORMANCE STANDARDS
    The auditor shall be responsible for the completion of audit for all the offices as per the Scope of
    Work in the tender Document.

    The Auditor shall follow all SIA (Standards of Internal Audit).
    The auditor is expected to apply reasonable degree of care and diligence while performing the
    audit. He should ensure that the work is progressing and being performed in compliance with the
    agreement.
    In case of any negligence found on the part of auditor , or the work is not carried out in
    accordance with the terms & conditions of the tender or scope of work is not adhered to by the
    auditor, MPMKVVCL reserves the rights to reject the audit report and to deduct a suitable
    amount from audit fees/incentives payable to auditor. The Performance review parameters as
    laid down in Annexure 10 shall form the basis of determination of the performance standard of
    the Auditors, but MPMKVVCLs decision shall be final in this regard. However, such deduction
    shall not exceed the amount of audit fees to the auditor firm.
    Substantial Failure of the selected bidder to perform the agreement may even cause to terminate
    the agreement. In this event, the Company may require the bidder to reimburse the monies paid
    (based on the identified portion of the unacceptable work received) and shall seek charges for
    associated damages.


                                                                                                      14
   8.24 ESCALATION
   No escalation charges or additional amount whatsoever shall be paid to the selected bidders.
   8.25 DISPUTES
   The following clause titled ,,Disputes shall be a part of the agreement to be entered into with the
   respective selected bidders for each group. This Clause does not prevent either party commencing or
   pursuing court proceedings to protect the rights of confidentiality and in respect of the Confidential
   Information of that party.
   In the event of any dispute or difference arising between the parties, relating to the scope of work,
   meaning or effect of the Agreement or any other clause or in respect of the rights and liabilities of the
   parties or other matters specified therein or with reference to anything arising out of or incidental to
   this agreement or otherwise in relation to the terms, whether during the continuance of this agreement
   or thereafter, such disputes or differences shall be endeavored to be solved by mutual discussions.
       In the first instance, the Dispute will be referred to the Chief Finance Officer for resolution;
       if the Chief Finance Officer cannot resolve the Dispute within 15 Business Days (or such other
       period as may be agreed between the parties), the Dispute will then be escalated to the MD
       (MPMKVVCL)
   For the avoidance of any doubt, any communication between the parties arising out of or in connection
   with the above procedure will be without prejudice and will be treated as confidential.

9. SCOPE OF WORK
 9.1 BACKGROUND
   Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited, with its office at
   Nishtha Parisar, Govindpura, Bhopal is a Power Distribution Company incorporated under the
   provisions of the Companies Act, 1956 (now Companies Act 2013) and is a Government of Madhya
   Pradesh Undertaking, post un-bundling of Madhya Pradesh State Electricity Board in 2005, as a part
   of the MP power sector reforms. The scope of work of the Company includes:
       Distribution of electricity to retail consumers;
       Compliance of requirements provided under provisions, regulations, notifications, clarification,
       etc. issued or notified by Madhya Pradesh Electricity Regulatory Commission (MPERC);
       Operation and Maintenance of distribution system;
       Billing to retail consumers and collection of revenue from retail consumers;
       Capital investment for improvement and capacity enhancement of distribution system.
The Management of the Company intends to appoint Internal Auditors, by engaging the Firms of
Chartered Accountants with a view to bring in a professional approach in the Internal Audit of the Power
Distribution business in Madhya Pradesh.



                                                                                                          15
MPMKVVCL, Bhopal has adopted the ERP System for maintaining the books of accounts. Audit
Module for the same is in the development phase. The Internal Auditor shall abide by the System,
upload all the audit reports on the system and comply with all other requirements of the same as a part of
its Scope of Work as and when the same will be finalized.
  9.2 ORGANISATION STRUCTURE
The Company is engaged in the distribution & retail supply of electricity to its consumers through 2
regional offices, 15 Circles and 49 divisions. There are about 345 Distribution centers in the specified
area. Its Organization Structure flows as below:

 MPMKVVCL,                                                   Division          Sub Division
                    Region Office       Circle Offices                                               Zones/ D.C.s
   Bhopal                                                    Offices             Offices



List of Offices are enclosed in Annexure 1.
  9.3 OFFICES FOR INTERNAL AUDIT
     Appointment of Internal Auditors:
        The Company desires to engage reputed Chartered Accountant firms, as Internal Auditors at the
        Circle Level. A firm of Chartered Accountant shall be appointed for each Group, which shall be
        responsible for the Internal Audit of all the listed Offices as per the Scope of Work within the
        Group for a block period i.e. for FY 2015-16 to FY 2017-18 (Revenue audit), FY 2016-17 to
        FY 2017-18 (System & Exp. Audit), FY 2018-19 (Books of Accounts Audit) and March 2019
        for Physical Verification of Area Store.
     Frequency of Audit of Offices:
        For all offices operating under the Group of which the CA firm is appointed as the Internal
        Auditor shall be required to be audited as per the Scope of work and TOR of the tender
        document. The Internal Auditor shall carry out internal audit as per the following scope of all the
        offices in the Circle Office(s):


  S.                                                             Periodicity/         No. Of Days of audit
             Scope of Work            Name of Offices
  No.                                                           Audit period             (mandatory)*
                                                              Block period from
           H.T. Audit                                                                         3 days per 25
   1.                               RAO Offices               FY 2015-16 to
           (100%)                                                                              consumers
                                                              FY 2017-18
                                    All the Zonal Offices/    Block period from
           L.T. Revenue
   2.                               Distribution Centres      FY 2015-16 to                     10 days
           Audit
                                    at the Circle Level       FY 2017-18
                                    Divisions, Circle,        Block period from
           Internal Audit of
   3.                               RAO and Region            FY 2016-17 to                      1 week
           System and Exp.
                                    Offices                   FY 2017-18
           Physical
   4.      Verification of          Area Store                Once                              10 days
           Store

                                                                                                              16
  S.                                                                   Periodicity/          No. Of Days of audit
               Scope of Work               Name of Offices
  No.                                                                  Audit period             (mandatory)*
              Internal Audit of
                                                                     Quarterly Basis
   5.         Books of                  RAO Offices                                                1 week
                                                                     FY 2018-19
              Accounts
*The number of days of audit are the mandatory number of days an audit team shall require to audit the
Office as per the Scope of work.
 9.4 STRUCTURE OF AUDIT PARTY
     The selected bidder shall be required to depute the audit teams for the audit of Auditee Offices,
     covering the entire scope of audit. An audit team/party consist one (1) Audit Officer and two (2)
     to three (3) Audit Assistants.
     The Audit Officer shall have any of the following as minimum qualification
                                     C.A. with at least two (2) years of experience;
                                                            OR
                                  C.A. (Inter) with at least five (5) years of experience;
            (Number of years of experience will be considered from the date of issuance of mark sheet)
     The Audit assistants (2 to 3 in number) shall be articled assistants with at least 1 year of
     experience or B.com/M.com with First Division and having at least 1 year of experience.
     Minimum two (2) Audit teams need to be deployed by the selected bidder at the same time
     to complete the audit assignment of all the Auditee Offices of the Circle within the
     prescribed time schedule. The said clause is applicable for group A to H only.
     All the documents of the audit team verifying their educational background like mark sheets,
     certificates etc. will be verified by the Company. The audit team of the selected Bidder form shall
     carry original and duplicate copy of their certificates.
     Along with the Audit team as mentioned above, the Bidder shall have a Team leader who
     should be a Fellow Chartered Accountant (FCA) responsible for the supervision and overall
     monitoring of the team.
        o     It shall arrange all necessary information for the audit team from time to time.
        o     Effectively supervise and control the audit.
        o     Effectively discuss the audit points with the Officer-In-charge and obtain detailed and
              meaningful explanation.
        o     Ensure the work shall be as per the Scope of Internal Audit and completion of the Audit as
              per the schedule.
     The appointment of the Audit team and the 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.

                                                                                                             17
9.5 MANDATES FOR THE BIDDER
The bidder shall assure that there should be no change in audit officer except for unavoidable
circumstances like resignation etc. to ensure proper flow of work.
Identity card will be issued to the team members of the selected bidder by MPMKVVCL, Bhopal.
The cost of the identity card will be borne by the MPMKVVCL for the initial audit team and if there
are any changes in the audit team afterwards or in case of loss of the card, a fee of Rs. 100 will be
charged for issue/reissue of card. The identity card will be issued after verification of documents.
9.6 TERMS AND CONDITIONS
    The Team leader shall mandatorily be present in all meetings and discussions for Circle and
    Division. Also the selected bidder shall take time from the Discom Officials at least 3 days before
    the meeting.
    The selected bidder shall report to the management of the Company if required, during the tenure
    and execution of the work.
    During the course of audit there shall be regular meetings once in a month between the
    management of the Company and the senior partners of the firm to discuss and review upon the
    issues.
    The selected bidder shall be required to report the outcome of their activities to the Chief Finance
    Officer.
    The selected bidder shall maintain a record of the activities being undertaken by them during the
    course of the Internal Audit of the Auditee Office. A summary of the work undertaken, completed
    and items pending shall be submitted to the Chief Finance Officer at the end of audit of each
    Auditee Office. This shall also form basis for the performance review of the bidder. Such record
    should be readily available for inspection at all times.
    The selected bidder 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.
    The selected bidder 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.
    The selected bidder 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.
    It may be ensured that this assignment is carried out only through employees of participating
    firm. If it comes to our notice that the assignment has been carried out by any other firm/persons,
    the appointment is liable to be cancelled.
    The selected bidder shall be responsible for data collection for the purpose of Audit. It should
    ensure that the data collected and analyzed justifies the findings and recommendations as
    provided by the auditor.

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     The selected bidder shall ensure the adequacy and effectiveness of the Companys system of
     Internal Controls, any deficiency in the controls and other procedures to ensure the same should
     be bought to the knowledge of the senior management along with necessary steps to be taken to
     rectify the same.
     The above conditions are not exhaustive. The Company will have absolute right to
     revise/abrogate/include any conditions as per its best requirement.
9.7 OFFICE SPACE AND STATIONERY
The Company shall provide all sitting arrangements including furniture and office equipment,
stationery etc. free of cost to the auditors for its bona-fide use only.
9.8 PERIODIC ASSESSMENT
The authorized person of the Company shall periodically assess whether the purpose, authority and
responsibility, as defined in this charter, continue to be adequate to enable the internal audit function
to accomplish its objectives. The changes, if any, required will be communicated to the auditors. Also,
the periodic review meet may be held at the Head Office of the Company with the Internal Auditors,
and the Auditors shall have to attend the same without any extra remuneration.
The Company also reserves the right to issue fresh guidelines/revise the scope of work for the audit
and the internal auditor shall have to abide by the same.
The Company also reserves the right to supervise the audit by surprise visit and audit party shall
explain the audit procedures and finding if asked for during the course of visit or even before and after.
However, if during the surprise visit the audit team is not found at the place of audit or the structure of
audit team is not as per the said terms and conditions or the audit is not found to be carried out as per
the scope of work defined, then in this situation the Internal Auditor may either be penalized @ 10 %
of the fees of the respective Auditee Office or may be terminated based on the assessment of the
authorized person during the visit.
9.9 CONFIDENTIALITY
The internal auditors their sub-consultants, individual consultants, partners of either of them shall treat
confidential information as confidential and shall not disclose any proprietary or confidential
information which comes to its knowledge while conducting Internal Audit to any third party without
prior written consent of the competent authority of the Company. He shall undertake to effect and
maintain the same adequate security measures to safeguard the confidential information from
unauthorized access, use and misappropriation.
All reports and other documents submitted by internal auditor shall not later than upon termination or
expiration of this assignment, deliver all such documents and reports to the competent authority
together with a detail inventory thereof. The internal auditor may remain a copy of such report and
documents but shall not use these reports and documents for purpose unrelated to this assignment
without prior written consent of the competent authority of the Company.
The internal auditor has to undertake that all knowledge and information not within the public domain
which may be acquired during the execution of the assignment shall be for all time and for all purpose,
regarded as strictly confidential and held in confidence and shall not be directly disclosed to any
                                                                                                    19
person whatsoever, except with the prior written permission of the competent authority of the
Company.
9.10 TERMS OF REPORTING
    Deliverables:
    Reporting and Deliverables shall form an important part of this assignment. Following points
    shall be considered:
        o   One composite Internal Audit Report shall be prepared covering all the aspects
            covered/ taken up during the Audit in different sections. Thus in one visit to an Auditee
            Office, the Audit for the particular year will be taken up and completed in all respects.
            The format for composite audit report is annexed in Annexure 8.
        o   Without prejudice to the extent and scope of the services, Test Audit Report (TAR),
            Test Audit Note (TAN) and Half Margin of each Auditee Office audited shall be the
            key deliverable.
        o   As soon as the audit of an Auditee Office is completed the TAR, TAN should be
            prepared. The TAR and TAN along with the Annexure 11, Half Margins and all other
            related details shall be submitted to the Chief Finance Officer, O/o MD (CZ),
            MPMKVVCL, Bhopal in Soft copy. Hard Copy of the report shall be submitted to
            the Officer In-charge of the Auditee Office with a copy to the O/o MD,
            MPMKVVCL, Bhopal.
        o   MPMKVVCL, Bhopal has adopted the ERP System for maintaining the books of
            accounts. Audit Module for the same is in the development phase. The Internal Auditor
            shall abide by the System, upload all the audit reports on the system and comply with all
            other requirements of the same as a part of its Scope of Work as and when the same will
            be finalized.
  Any Internal Audit Report shall be sealed and signed by the any Partner of the Consortium
  Leader Firm only. Any report/ correspondence by any other firm which is signed or sealed by any
  other firm shall not be entertained by MPMKVVCL, Bhopal
            The Reports shall be submitted in soft and hard copy within 15 days from the date
            of completion of the audit of an Auditee Office. The report shall be provided by an
            authorised person in designated email of Auditee Office and email id of corporate
            office i.e. mpcz.audit@gmail.com at the same time.
    Terms of Reporting:
        o   The Auditee shall be submitting their yearly action plan to the Bidder for the Audit of
            each Circle of the Group as per the Scope of Work mentioned in the document falling
            under his purview as Internal Auditor.
        o   Non-cooperation at any point of time during the audit tenure shall be bought to the notice
            of the General Manager/ S.E. of the Circle Offices for immediate action in verbal as well
            as in writing.

                                                                                                   20
         o   However, if no action is taken by the General Manager/ S.E. of the respective Circle to
             resolve the issue, the same shall be bought to the notice of the Chief Finance Officer
             confidentially.
         o   The Audit Party shall have visit mandatorily the Auditee Office during office hours for
             the Internal Audit as per the schedule for a minimum number of days as prescribed.
         o   The Team Leader shall be responsible for the supervision and satisfactory completion of
             the internal audit of the Company.
         o   The Audit shall be completed in the prescribed time schedule. However in the event of
             non-completion of the work in the stipulated time period due to unforeseen conditions,
             the auditor firm will be required to apply for grant of additional time period. Request of
             extension of time period desired by the auditor firm shall be considered only if reasonable
             and justified ground exists at the sole discretion of Chief Finance Officer MPMKVVCL,
             Bhopal
9.11 SCOPE OF WORK
The revenue collection efficiency of the Company is 91%. There is a tariff mechanism to raise demand
on HT consumers on a monthly basis as per the consumption recorded. The Company compiles the
monthly data in the form of R-15. At present the Company has CCNB and RMS billing software in all
Accounting Units (RAOs).
The selected bidder is required to exercise such tests of accounting records, internal checks and control
and other necessary audit of the accounts as per general principles and standard of audits (SIA) of the
Institute of Chartered Accountants of India. In conducting the Audit the Internal Audit Manual of the
Company should also be referred. The Auditor should pay attention to the following areas while
auditing:
The Scope has been classified into following:
    Internal Audit of System and Expenditure: For the Block period under audit at all Division
    Offices and Circle Office.
    Revenue Audit of LT Consumer Accounts: For the Block period under audit at DCs / Zonal
    Offices
    Revenue Audit of HT Consumers: For the Block period under audit at RAO Offices.
    Verification of Stores: Yearly.
    Internal Audit of Books of Accounts: Quarterly at all the RAO Offices.
The Auditor should submit a Composite Internal Audit Report of System and expenditure audit of all
offices of the Circle as per the scope below. Further the Auditor needs to submit report of 100% HT
Revenue Audit at the Accounting Units of the Circle and LT Revenue audit for the D/Cs/ Zones.
The scope of auditor will also include:-
     The auditor should try to identify wasteful expenditure is done, if any and report the same so that
     suitable action can be taken. The auditor should also ascertain the utilization of capacity- both

                                                                                                      21
         physical and technical and if there are cases found for underutilization or wastage of resources
         then this should be reported so that suitable remedial action can be taken.
          Preparation of half margins in prescribed format for obtaining various information / records &
         issuing the same to JE/AE officer in charge of Auditee Office and after receipt of the same,
         carrying out the audit of the record and if any mistake is pointed out the half margin of audit
         observation shall be issued for obtaining reply of JE/AE officer in charge of the Auditee Office.
         If the officer in charge of the Auditee Office agreed with the observation pointed out, then this
         will be treated as audit Para. If the Officer in charge of the Auditee Office does not agree with
         the observation pointed out, then such Half Margins should be included under separate audit
         Para giving remarks by the audit team.
         A Test Audit Report (TAR) & Test Audit Note (TAN) shall be prepared including all audit Paras
         in the prescribed Performa as per Annexure 11. If individual audit recovery of ` 1000/- or more
         is pointed out it should be covered under TAR and If individual audit recovery is less than `
         1000/- it should be covered under TAN.
         After completion of internal audit of a DC/Zone, the report for the same shall be submitted to
         that office and an acknowledgement of the submission shall be taken from office in charge. At
         the same time, a copy of the report shall also be submitted to the concerned division.
         After completion of internal audit of all DCs/Zones under a particular division, System &
         expenditure Audit of that division will be started and at the same time a discussion on the reports
         of DCs/ Zones shall be done with the Division in charge. A summary report of discussion
         along with certificate of Division in charge shall be submitted by the bidder along with the
         invoice.
It is however emphasized that the coverage in the scope of services as indicated above and detailed below
is indicative and not exhaustive. The Auditor shall also necessarily refer to the existing Internal Audit
Manual and its amendments from time to time to decide on the scope of work for the Auditee Offices.
The scope can also be decided with discussion with the Internal Auditor at the Corporate Office.
Apart from the audit observations, auditor will be required to indicate discrepancies / inadequacies in the
system or procedures so as to initiate steps for improving the system and making it more efficient. The
audit team will also be required to educate the dealing staff so as to avoid repetition of routine procedural
/ technical errors.
Further all other incidental / necessary activities for the completion of audit & resolution of matters
arising during the audit shall deem to be included in the scope of services. In case of judicial
proceeding(s) initiated by Discom pursuant to the audit for the period, the auditor shall reasonably assist
the Discom office by acting as a witness and providing evidences required as related thereto.




                                                                                                          22
  9.12 SCOPE OF EXPENDITURE AND SYSTEM AUDIT:
        Expenditure Audit shall cover all the Circles along with the Divisions/ Sub- Divisions / D/Cs under
        them and all other offices incurring expenditure.
Broadly it shall cover the following:
           Capital Expenditure
           Payrolls, P.F. and other establishment Expenditure
          Stores and Purchases
          Claims against Third Parties i.e. Suppliers, Contractors, Transporters, Railways, etc.
Following are the broad areas of system and expenditure audit:
SANCTIONS & BUDGETS:
          100% checking for the full period at the end of the Year, along with Administrative/ Financial
          Approval, detailed estimation being technically sanctioned by the Competent Authority.
          Sanctioned estimates to be verified with reference to latest District Schedule of Rates or Market
          rates or Companys latest cost data.
          Budget allocated to Circles as well as utilized by the concerned.
          Excess spending over the budget allocation and Regularization of excesses.
CONTRACT AGREEMENTS/PRICE:
          Checking Tender Registers, Contractors Bill Registers and even Registers containing
          Registration of Contractors.
          Competent Authority to sanction the Contract & amendments issued, if any, must contain his
          approval.
          Split up of contract to be within financial powers of field officers to be reviewed and
          commented. Proper execution of contract, Levy of L.D. Review of arbitration cases.
WORK ORDER:
          The Work Orders must have Administrative approval and Technical Sanction and the proposal
          must be justified on the basis of Budgeted Provision.
          Order for repairs for Transformers should be at Approved rates & Register of Bills with RA Bill
          wise update position to be checked.
          Reconciliation of the Works Register and the Works Register at the RAO Office.
          Timely preparation of Completion Report based on the completion of the Work as per the Work
          Order.
          Check for updating of record of transformer failure, from the date of return from the field, issue
          for repair to Repairers as per the allotment order under the RCA, inspection done to examine


                                                                                                         23
      feasibility for repair, estimation, stage inspection, clearance for repair, return of transformers
      found uneconomical for repair, etc.
COMPUTATION & RECOVERY OF INTEREST ON INTEREST BEARINGADVANCES:
      The recovery of Interest should be as per the requirements & rules of the Organization & must
      be appropriately made, adequately secured & duly acknowledged.
      Non-recoverability of both principal and interest to be verified/ reported.
      Accounting Statement of such unrecoverable advances and interest to be verified and reported.
PURCHASE ORDER:
      The orders placed by the Circle & Division offices should be as per the Budget provision &
      check should be kept on the items reserved for Corporate Office purchases.
      Purchase should be as per DOP
      Delay in supply and resultant recovery of L.D charges etc. should be checked and commented.
      Waiver of L.D charges by Competent Authorities to be critically reviewed with reference to the
      existing circumstances.
      There should be a comparative price analysis review on the basis of Quotations & other price
      information.
      Distress purchase/ wrong intending/ Excess quantity procurement etc. should be reported.
REVIEW OF INSURANCE CLAIMS:
      Reviews should be taken of the Claims lodged along with the Follow- up actions, its Settlement
      & followed by proper Accounting Procedure.
      Loss of insurance claims due to lack of procedures/processes to be reviewed/reported.
      Timely submission of information should be verified.
CLOSURE OF CONTRACT:
      The final bills to be settled as expeditiously as possible.
      Delay to be reviewed. Delay in capitalization to be seen and reported.
      Reasons for pending WCRs to be analyzed/reported.
ESTABLISHMENT- SALARIES & WAGES:
      Test Checking of Pay Bills with reference to rules & Proprietary aspects- at least for a month in
      every phase of Internal Audit.
      Verification of Wage Sheets, Attendance Records- particularly of Leave Salary/ OT & other
      Allowances & Accounting of leave records at least for a month in the phase of Internal Audit.
      Increments, revisions and Grade fixation etc. to be verified.
      100% checking of Payment of Pension, Gratuity & Other Retirement Benefits, Statutory
      Deductions & their timely deposits.
                                                                                        24
      Calculation & Accounting of Interest on Loans & Advances & its recovery as per applicable
      rules.
      Contract employees payment to be audited to see ,,ghost works
      Allotment of quarters for emergency staff to be checked.
      Proper transfer of employees from one division to another.
FIXED ASSETS & CAPITAL WORK IN PROGRESS:
      100% checking of Capital Expenditure with reference to proper sanction of Competent
      Authority.
      Accounting of Fixed Assets, Depreciation & Capital WIP.
      Checking of works completed but not transferred to fixed assets.
      Delay in finalization of final bills.
      Review of Fixed Assets Register.
      Review of DPR and non-DPR capital works.
      Review of loan tie up and loan servicing for capital works.
      Review physical progress and financial progress in projects.
      Review of delay in completion of project formalities.
      Review of payment of commitment charges, if any.
      Review of Capital items financed out of internal resources when loan tie up was possible.
STORES & MATERIAL ACCOUNTING:
      Checking receipts, acceptances & issue of Material and their Reconciliation & Accounting, at all
      stores.
      Non- Moving /Slow Moving items to be brought to the notice of management.
      Release of stores Receipt notes, acceptance of material after test results etc. to be checked.
      Review of sale of scrap / utilization of slow moving items and verify the accounting of the same.
      Verify the pricing aspect in GRN according to ESAAR, 1985
CASH AND BANK:
      Verification of Cash, Cash Book & its Auditing.
      Bank reconciliation.
      Accounting of Stale Cheques.
      Dishonor of Cheques. Action under Section 138 of Negotiable Instruments Act, 1938.



                                                                                                       25
STATUTORY COMPLIANCES:
      Violation of TDS at the time of payment towards Rent, Consultancy charges, Professional fees,
      etc.
      Appropriate recovery towards WCT, IT, VAT etc. and its timely, payment.
      Claiming VAT set off (input credit).
      Violations of any other law e.g. non-payment of wages as per minimum wages Act, ESI recovery
      & timely remitting of P.F by contractors for which Company is responsible as a Principal
      Employer.
      Recovery of Service Tax.
      Attending meeting with Statutory Auditors as & when required.
      Physical presence of Internal Auditors at the time of annual inventory. You have to give your
      comments and be a party to sign the verification report. You can suggest the methods/procedures
      to improve upon current practices of inventory verification.
      Is there an adequate internal control procedure commensurate with the size of the Company and
      the nature of its business for the purchase of inventory and fixed assets and for the sale. Whether
      there is a continuing failure to correct major weaknesses in internal control. This would be in
      compliance to clause No. 4 (IV) of Companies (Auditors Report) order, 2003.
      Comments on compliance report submitted by the individual office for previous Internal Audit
      Report.
      Auditors shall also attend to any other work specifically assigned by the Management or
      commented by the statutory auditors in their report (CARO) regarding Internal Audit.
      Compliance of MPERC regulations.
FRANCHISEE AUDIT:
      If any franchisee is operational in any Circle/ Division, detailed audit of the billing to franchisee
      is to be done.
      The terms and condition of the Franchisee Contract are followed; the billing is as per the contract
      etc.
      Any penalties or incentives are as per the contract.
OTHER ISSUES :
      Online New Service Connection : Newly introduced facility of online application for New
      Service Connection has been recently made available for HT consumers . At the time of visit to
      the concerned office in addition to the routine audit work , audit to be held of the New Service
      Connections taken prior to the date of audit to ensure that this facility is working smoothly in the
      field .



                                                                                                        26
SUGGESTIONS/       RECOMMENDATIONS              FOR     ENHANCING          OVERALL/       INTEGRATED
EFFICIENCY:
       Analysis of risk in technical as well as financial ones. Internal control with reference to existing
       risk.
       Any ,,whistle blowers found in the course of audit to point towards ,,fraud in the transaction
       during any time.


 9.13 SCOPE OF LT REVENUE AUDIT
  LT Revenue comprises around 63.5% of the Revenue of MPMKVVCL. The L.T. Revenue Audit is to
  be carried at all D.C.s / Zonal Offices of the Circle as per the Scope of Work in the Tender document.
  The Internal Auditor needs to carry out Revenue audit for the D/Cs / Zones. Since the period
  for which LT revenue audit is to be undertaken has already ended, therefore audit for the block
  period of three financial years can be undertaken in continuation.
Objective of Revenue Audit
       Enhancement of Companies revenue by prevention/ correction of noted instances of revenue
       leakage.
       Testing compliance of units to set rules and procedures relating to various facets of operation.
       Transactions are executed in accordance with general orders and guidelines.
       All transactions are promptly recorded in the correct amount in the appropriate books of entry
       and in the correct accounting period.
       Assets mainly cash; is safeguarded from unauthorized access, use and disposition.
  The Internal Audit Manual of the Company should be referred for conducting the Revenue
  Audit of the D/Cs. However, the following areas should be covered in the Audit Report.
  Checking of Classified Abstract Collection (CAC)/Cash Remittance Advice (CRA).This shall include
  checking of following:-
       Records of CAC shall be checked thoroughly with counter foil / stub of energy bill available in
       distribution center;
       Postings from MR (Money Receipt) to CAC (in cases as applicable) and whether the receipts as
       stated in the CAC are continuous;
       Legitimate utilization of MR and control on stock of unused MR.
       Any over writing and corrections made in CAC from counter foil of that particular bill are duly
       authorized;
       Payments received by Cheques/drafts etc. are properly entered in the prescribed register. Further
       entries in register are attested by officer in-charge of the Distribution center and have been duly
       entered in CAC;

                                                                                                          27
       Sum totals of each CAC are correct and CRA are prepared as per CAC;
       CAC, being regularly checked by the clerk concerned is initialed by the Assistant Engineer, is
       closed every evening and the total receipts of the day are transferred to the Main Cash Book, the
       same evening. In case of defaults indicate the date from when to when it has not been checked
       and the names of the defaulting clerks;
       Reconciliation of CAC with consumers ledgers ;
       That the realizations required to be deposited in bank have been routed through the CRA and that
       CRA has duly been signed by the depositor;
       Reconciliation of amount remitted into Bank during the particular month with the bank
       statements;
       Reconciliation of online payments made by consumers with the MIS provided by the service
       provider and MIS generated through billing system.
       Time taken by distribution center in submitting CRA to RAO. Reasons for delay, explanations of
       the staff, etc. shall be analyzed and included in the report.
Adjustment made through CCB/CC4/CC7
       All cases of adjustment made to the consumers accounts are required to be chec ked thoroughly
       from CCB/CC4/CC7, including Interest on consumer deposits. Cases of discrepancies found
       shall be included in the report.
Meter Reading Diary
       Checking whether Meter Reading books are kept in a bound form for all the categories and
       progress reports are received from Meter Readers monthly showing the number of meters
       actually read by them;
       Meter reading diaries have to be checked thoroughly, particularly for finding out the position of
       stopped/defective meter. Further, action taken by the officers on observations of meter readers
       and compliance to procedural requirements including Sample checking by AE/EE is also
       required to be verified and commented upon;
       Assessment of units and its reasonability shall also be checked on sample basis. This shall
       include verifying whether the units consumed during a particular billing period are showing
       substantial difference against the units consumed in the earlier period and the connect load;
       For new connections check whether the first bill is issued in compliance to the procedure as
       prescribed thereof.




                                                                                                     28
Audit of billing operation
        Assess regularity in Billing process including Meter reading and Billing Programme;
        Assess adherence to Billing Programme and report the deviations;
        Report cases of delay in issue of bills and the details thereof including:
        Category of consumer or ledger number;
        Months in which bills were required to be issued;
        Months in which bills were actually issued;
        Name of the defaulting ledger keeper and checking clerk.
Domestic consumers
    At least records of 10% consumers from consumer ledgers and meter diaries are to be checked
    thoroughly for analyzing the following:
        Consumption pattern;
        Working condition of meters;
        Sanctioned load etc.
Commercial consumers
    Records of 100% consumers are to be checked thoroughly as similar to work done in case of
    Domestic consumers.
LT Industries
    Records of 100% consumers are to be checked thoroughly as similar to work done in case of
    Domestic consumers.
New Connection Register
    Records of 50% new connections provided during the period shall be checked on random basis for
    the following:
        Whether all charges as per applicable rules have been recovered from the consumers;
        Analyze the average time taken for providing new connections;
        Whether all connections released are put on billing cycle timely.
Temporary Connection Register
    Records of 100% temporary connections shall be checked for the following:
        Check temporary connection register regarding compliance to rules prescribed for the same.
        Check accuracy of tariff rates and the billing done for temporary connections.




                                                                                                     29
         Report on trend for number of temporary connections and collection of amount billed. Also
         compare with their number during previous period and comment on deviation against expected
         number for the current period.
Street lighting installations
     Records of 25% street lighting installations shall be checked for the following:
         To check whether the correct load and energy consumption are considered correctly for the
         billing purpose.
         To check whether the maintenance charges have been correctly calculated and billed.
         To check that additional loads/installations serviced from time to time are correctly brought on to
         the consumers ledgers and accordingly monthly demand is raised thereof.
         To check whether the audit short claims, if any, are correctly demanded and collected.
Dishonored Cheques Register
         To check whether the Dishonored Cheques register is properly maintained.
         To check whether timely action has been taken for recovery of revenue including disconnection,
         penalty and legal action besides ensuring that the consumer records/books of account are
         updated immediately and intimated to the consumer for fresh payment along with surcharge and
         bank charges.
         To check whether necessary entries in RED INK are made in the receipt and payment sides of
         the cash book as well as in the CAC and CRA of the day.
Cash & Bank
         Physical Verification of cash in hand and reconciliation of the same with cash book, bank
         balances and cash in transit.
         Reconciliation of book balances with General Ledger & balance as per Bank Statement.
         Verify accuracy and cutoff for cash transactions regarding recording of receipts in the same
         accounting period in which they have been received.
Analysis of receivables
         To check that defaulters list is being regularly received at the DC;
         To check that status is being updated at the DC regarding defaulters and efforts made for
         recovery, including service of notice for outstanding dues;
         To check whether dates are indicated on which:
            o    Temporary disconnection orders are given effect to;
            o    Permanent disconnection orders are given effect to;
         In case no such orders were implemented, ask reasons for the same;
         Check whether list of defaulters is showing an increasing trend.
                                                                                                         30
         Check whether list for cases of permanent disconnections is prepared in compliance to
         Electricity Supply code 2004 for submission to Commission.
         To check whether outstanding charges/dues/amount of installment fixed along with
         disconnection and reconnection charges as may be applicable, are received in case where
         temporary disconnections been restored.
         In case of temporary disconnections made at request received from the consumer check whether
         all the monthly charges that are fixed in nature e.g. demand charge, minimum charge, meter rent
         etc. have been received from the consumer in advance. Also check whether disconnection /
         reconnections charges have been received from the consumer.
         In case of disputed / erroneous bills check that adequate records are being maintained for status
         of the dispute & its resolution. Also check on sample basis that in case the bill is found to be
         erroneous and accordingly a revised bill has been issued, whether adjustment has duly been
         made in the subsequent bill.
Audit of Expenses
         Check whether schedule of authority is compiled to for sanction of expenses;
         Check whether the expenses are adequately supported with evidence thereof;
         Check whether proper accounting is done of expenses incurred & controls are monitored to
         prevent payment being made for more than once;
         To check that expenses incurred have been as per allocation made in the budget for the relevant
         period. In other cases verify whether approval have duly been obtained;
         To ensure that classification of expenses has been done under correct expense head;
         To ensure that expenditure has been incurred with due regard to financial proprietary e.g.
         supplies in excess of requirements have not been have not been obtained, the expenditure has
         been incurred only for legitimate purposes etc.;
         To ensure that expenditure has not been unnecessarily incurred to prevent the lapse of budget
         allotment and the charges incurred during the year have not been met from the budget allotment
         for the next year without approval of the competent authority.
Others
         In case of seasonal consumers check whether the seasonal credit has been given correctly;
         Check whether regularization has been done of anomalies pointed out by vigilance, periodic
         inspection reports and other audits conducted;
         Report on maintenance of records at DCs;
         Checking compliance to tariff orders;
         Study the abnormal/sub-normal consumption in respect of high revenue yielding installations &
         report on the reasons for such variations;


                                                                                                       31
     Compare the consumption pattern of similar industries/installations to highlight possible loss of
     revenue;
     Compare the average billing rate of revenue of the DC as a whole with average billing rate for
     each category of consumers. In case of average realization being significantly lesser than the
     overall average realization rate of the sub-division (of that category), investigate the reasons for
     the same and suggest remedial action, if any;
     Compare the average consumption per installation of the DC as a whole with average
     consumption for each category of consumers. In case of average consumption being significantly
     lesser than the overall average consumption of the DC (of that category), investigate the reasons
     for the same and suggest remedial action, if any;
     Compare the average revenue billed per installation of the DC as a whole with average revenue
     billed for each category of consumers. In case of average revenue billed being significantly
     lesser than the overall average demand of the sub-division (of that category), investigate the
     reasons for the same and suggest remedial action, if any;
     Analyze the balances of receivables (arrears in terms of number of days of demand) for each
     category of consumers and compare it individual with ledger balances. In case of large variations
     in the level of receivables in respect of a particular ledger, investigate the reasons, and suggest
     remedial action;
     Verify the meter reading and billing efficiency. In case the percentage of meter reading and
     billing is significantly lower, auditor should take immediate action to report the matter to the
     administrative authorities for taking immediate appropriate action. While reporting the matter
     auditor should quantify the loss of revenue on account of the above reason.
     Verify the collection efficiency. In case the percentage of collection efficiency is significantly
     lower as compared to the previous year, the auditor should report the matter to the administrative
     authorities for taking immediate appropriate action.
    Money receipt books have been handed over to line men w.e.f March 2016 for collection of
    revenue from consumers along with their regular work. While auditors visit the field office for
    doing their routine audit work , checks are to be done to verify that the total of all CAC issued
    against a particular money receipt book matches with the grand total of the Money receipt book
    and the revenue so collected is remitted by means of CRA. Also appropriate checks must be done
    to ensure that no error / fraud is done while implementing this practice in the field.


9.14 SCOPE OF HT REVENUE AUDIT
High tension (HT) Revenue unit contribute huge chunk of revenue for the Company. The HT Billing
is done at the RAO (Accounting Unit) of the respective Circle. The Auditor has to verify 100% of the
Revenue from HT consumers.
Each HT consumer has executed a HT agreement with the Company. The Auditor has to read the
terms and conditions of the HT agreement.


                                                                                                      32
Review of Internal Control
   Ensure that the laid down system of Internal Control in properly implemented. Since the number of
   consumers is low and the value of transactions is high there shall be a system of 100% verification in
   almost all the activities. Further the Internal Check shall be more objective rather than the repetition of
   the same Check.
Important features of HT Billing
        Voltage of Supply
        Contracted Maximum Demand / Recorded Maximum Demand
        Load Factor (for the purpose of allowing Incentive to consumers)
        Restriction on Lights and Fans Consumption
        Billing of Colony consumption at a separate rate
        Minimum off-take and Billing (in case of consumption less than specified level)
        Import and Export of Electricity (in case of Billing of consumers having Captive Power Plants)
Important areas to focus
        Check whether the tariff category and billing is done in line with the tariff policy as notified by
        the regulator i.e. MPERC and its amendments from time to time.
        Analysis of load and consumption pattern with last year and last six months in all cases and
        reporting the reasons for changes
        Check whether the meter readings in respect of the HT consumers are being taken jointly by the
        Officer of the Company and representative of the consumer, on the fixed date as per the Billing
        programme or not.
        Check whether the copies of the meter readings are dispatched to the Regional Accounts Office
        for the preparation of the Bills, and the receipt of the same is sent to the RAO and intimated
        within 3 days of deposit by the consumer.
        Check whether action for temporary disconnection to the consumer is issued in the event of
        default of the payment of the bills on time by the consumer.
        Ensure that the application of tariff is correct.
        Verify the General terms and conditions of the tariff.
        Correspondence with the consumer and Company is to be verified.
        Ensure that the subsidy claim is correctly lodged.
        In case of Increase / Decrease in Load whether supplementary agreement has been carried out.
        Increase/ Decrease in Load and its impact on Billing
        Termination of Agreement and sanction by competent authority

                                                                                                           33
        Lighting Load whether segregated or not?
        Metering of Colony consumption.
        Whether Security Deposit is as per the MPERC Regulations 2004 as amended from time to time.
        Check on Test Basis whether Interest on Security Deposit as calculated by RMS is correct?
        Check the Status of PDC, arrears adjustment, security deposit adjustment, actions taken for
        recovery etc.
        Levy of SLDC Charges in case of Persons operation Capital Power Plants (CPPs) and export of
        energy to the DISCOM / State Grid.
        Monthly Reconciliation of HT Revenue Receipt.
        Check whether the adjustment and RPO compliance is well in place for open access consumers.
        Check the electricity duty is calculated as per the provisions of the electricity Act.
Review of Agreements
        Service Agreement with the consumer shall be reviewed at periodic intervals as there may be
        changes in the business of the consumer or there may be changes in the Tariff conditions /
        principles of categorization for Billing.
         Citizen Charter as prescribed is followed and all commercial activities relating to issue of New
        Service Connections, metering, meter reading, billing, collection, realizing bad debts,
        disconnections, reconnections, customer complaint, vigilance checking, compounding, filling of
        theft cases in special courts and follow up to be commented upon. In case of any adjustment
        given in the bills against own generation of wind energy, verification of such calculation and
        terms of PPA.
 9.15 VERIFICATION OF STORES
   The inventory in the Distribution Company includes the materials bought for capital works and
   maintenance works. The peculiarity of some of the items of inventory is that they can be used for both
   the Capital Works and Maintenance Works.
   Scope of the Audit of the Stores and Pricing in the Stores includes (but not limited to):
        Review of the Internal Controls in the Stores;
        Audit of Pricing of Issues;
        Review of valuation of Inter-store transfers;
        Review of age-wise analysis;
        Review of system of level of inventory;
        Periodic physical verification of inventory.
Checklist:
        Check whether initial records and other books of accounts are maintained properly;
                                                                                                      34
     Check whether the Requisition books are maintained properly and issued by the appropriate
     authority;
     Check whether the Stores accounts are closed on the prescribed dates of the month and recorded
     in the accounts of the respective month;
     Check whether the reconciliation of the quantities is done on a timely basis;
     Check whether the priced stores ledger are maintained properly;
     Check whether the Stores Issues are valued at the prescribed pricing method;
     Check whether the monthly Stock balances are maintained as per the approved limits;
     Verify whether the Stock reconciliation certificate is prepared on a monthly basis and actions
     initiated in clearing the differences are taken:
    o In respect of the excess and shortages the explanations of the departmental staff is obtained,
      examined and approval of the officer concerned is available for the adjustments carried out in
      the ledger;
    o Check whether the adjustments have been made in the ledgers;
    o Check for no fictitious adjustments made in the ledger.
    Check whether the internal checks prescribed in the manual are conducted and registers for this
    purpose are maintained;
9.16 INTERNAL AUDIT OF BOOKS OF ACCOUNTS AT RAO OFFICE
Scope of work as detailed hereunder is an attempt to outline road map in broad term with the objective
of management to ensure compliance to Generally Accepted Accounting Practices / Principles as well
as requirement of the Companies Act, 1956 (now Companies Act 2013) / Income Tax Act /
Accounting Standards published by the Institute of Chartered Accountants of India besides accounting
policies adhered to by the Company. This also includes timely reconciliation of various suspense
heads of accounts and maintenance of proper subsidiaries duly reconciled with the books of accounts.
The selected bidder shall work as facilitator for accomplishing the aforesaid objective and shall not
confine to reporting aspect only.
The main emphasis of the audit of the quarterly accounts of RAO(s) should be to ensure that:-


     Accounting Standards issued by the ICAI are being followed keeping in view the accepted
     accounting policies of the management
     The monthly trial balances incorporating all advice of transfer debits / advice of transfer credits,
     Inter Company Transactions, Store Issue Notes, Store Receipt Notes, DCB and other adjustment
     vouchers are submitted timely and properly.
     Reverse entries for outstanding liabilities have been passed at the beginning of the year.
     The provisions, including provisions for outstanding liabilities, pension, gratuity, contributory
     provident fund, NPS etc. are properly made and booked under proper head of accounts.
                                                                                                      35
   Pre-paid expenses are properly accounted for.
   Credits on account of receipt against deposit works are transferred on completion of the work to
   consumer contribution and debit under work in progress is transferred to fixed assets on the basis
   of completion reports.
   Advice of transfer Debits / Advice of transfer credits and Inter Company Transfer have been
   originated well in time and are responded after due verification from the concerned timely.
   T33here are no minus balances under any head of accounts and if existed, steps taken to clear
   minus balances.
   Party wise list of debtors / creditors.
   All receipts and expenditure relating to the period have been properly booked under correct head
   of accounts.
   MIS & Accounts are tallying in respect of ED/Cess etc.
   Proper and timely adjustments are being made in the books of accounts in respect of realization
   by adjustment.
   Year wise fixed asset-cum-depreciation register is prepared.
   Stores ledger balances are tallying with the balances appearing in the books of accounts.
   Valuation of closing stores inventory / scrap / obsolete / retrieved material and accounting
   thereof should commensurate with the accounting as per AS read with accounting policies of the
   Company.
   All material issued for capital works should be booked under CWIP and proper monthly record
   of CWIP scheme wise, estimate wise is prepared by accounting unit.
   Capital works completed should be got transferred to fixed assets.
   All pay orders relating to deduction at source viz. CPF / EPF / NPS / Income Tax / Service Tax /
   WCT / Entry Tax etc. are sent within stipulated time period.
   The outstanding observations of previous Statutory Auditors are cleared.
   Required subsidiaries are properly maintained and reconciled with books of accounts.
   Reconciliation of Bank Accounts, Transfer within Circle, Advances for O&M supplies,
   Advances for Inter Unit Stores Account, liabilities of entry tax, liability for O&M supplies,
   sundry debtors collection a/c, sundry debtors for sale of power, Net salary payable a/c, unpaid
   salary a/c, bonus /ex-gratia and deduction at source viz. Income Tax, GPF, CPF, EPF, HPS, LIC
   etc. are properly done and all should tally with the subsidiaries.
   The Audit report should be prepared immediately after audit of trial balance of the RAO and
   should be submitted to the Chief Finance Officer immediately.




                                                                                                  36
10. MINIMUM FEES:
         As required by the latest guideline issued by the Institute of Chartered Accountants of India,
         there is a requirement to specify the minimum fees for the assignment in the tender itself then the
         members may participate in the tendering process. Therefore the minimum fees for block period
         for each of the group of work specified in Annexure 1 is as under :
         1. For audit of all 48 offices in Group A (as per Annexure 1) Rs 15,60,000.
         2. For audit of all 58 offices in Group B (as per Annexure 1) Rs 19,20,000.
         3. For audit of all 78 offices in Group C (as per Annexure 1) Rs 26,00,000.
         4. For audit of all 49 offices in Group D (as per Annexure 1) Rs 15,85,000.
         5. For audit of all 44 offices in Group E (as per Annexure 1) Rs 14,20,000.
         6. For audit of all 59 offices in Group F (as per Annexure 1) Rs 19,25,000.
         7. For audit of all 66 offices in Group G (as per Annexure 1) Rs 21,80,000.
         8. For audit of all 41 offices in Group H (as per Annexure 1) Rs 13,35,000.
         9. For HT revenue audit of Group "I"    (as per Annexure 1) Rs 21,37,000.
         10. For HT revenue audit of Group "J" (as per Annexure 1) Rs 10,44,000.


Note:-

   1. The minimum fees as mentioned above are exclusive of taxes. Bidder has to quote the fees
      exclusive of taxes. The taxes as applicable will be paid extra by MPMKVVCL.

   2. In case, apart from above offices any additional office is required to be audited, the same may be
      awarded to the selected bidder for that Group after getting approval from order placing authority.




                                                                                                         37
                                                                                                   ANNEXURE -1
 I.          LIST OF GROUPS FOR WHICH BIDS ARE REQUIRED:
Group      Region/ Circle Office
  A        Bhopal City Circle + O&M Circle Vidisha
  B        O&M Circle Sehore + O&M Circle Rajgarh
  C        O&M Circle Betul + O&M Circle Hoshangabad
  D        Bhopal Regional Office + O&M Circle Bhopal (Including Raisen Circle)
  E        Gwalior City Circle + O&M Circle Sheopur
  F        O&M Circle Morena + O&M Circle Bhind
  G        O&M Circle Guna + O&M Circle Shivpuri
  H        O&M Circle Gwalior + Gwalior Regional Office
   I       HT Revenue Audit Bhopal Region:-
                                 (ii) City Circle Bhopal
                                 (iii) O&M Circle Bhopal (Including Raisen Circle)
                                 (iv) O&M Circle Sehore
                                 (v) O&M Circle Rajgarh
                                 (vi) O&M Circle Betul
                                 (vii) O&M Circle Hoshangabad
                                 (viii)         O&M Circle Vidisha
     J     HT Revenue Audit Gwalior Region:-
                                 (i) Gwalior City Circle
                                 (ii) O&M Circle Gwalior
                                 (iii) O&M Circle Bhind
                                 (iv) O&M Circle Morena
                                 (v) O&M Circle Guna
                                 (vi) O&M Circle Shivpuri
                                 (vii) O&M Circle Sheopur


II.          LIST OF NUMBER OF OFFICES FOR THE ABOVE GROUPS A to H
                                                                                     Offices for
                                      D/Cs        Offices for System and Exp.        Books Of       Physical
                                                                                                                  Total
S.                                   for L.T.                 Audit                  Accounts      Verification
           Region / Circle Office                                                      Audit
No.                                    Rev.
                                      Audit     Division     Circle
                                                                         RAO           RAO           STORE        Total
                                                  Off.        Off.
 1       City Circle Bhopal             23         4           1           1             1                         30
 2       O&M Circle Vidisha             13          2          1           1             1                         18
         Total Offices in Group A       36          6          2           2             2              0          48
 1       O&M Circle Sehore              23          2          1           1             1                         28
 2       O&M Circle Rajgarh             24          3          1           1             1                         30
         Total Offices in Group B       47          5          2           2             2              0          58
 1       O&M Circle Betul               30          3          1           1             1                         36
 2       O&M Circle Hbad                35          4          1           1             1                         42
         Total Offices in Group C       65          7          2           2             2              0          78
 1       Bhopal Region Office            -          -          1           1             1              1          4
         O&M circle Bhopal &
 2                                      35          7          1           1             1              -          45
         Raisen

                                                                                                                  38
         Total Offices in Group D        35    7        2         2          2           1          49
   1     City Circle Gwalior             18    4        1         1          1           --         25
   2     O&M Circle Sheopur              14    2        1         1          1           --         19
         Total Offices in Group E        32    6        2         2          2           0          44
   1     O&M Circle Bhind                20    4        1         1          1           --         27
   2     O&M Circle Morena               25    4        1         1          1           --         32
         Total Offices in Group F        45    8        2         2          2           0          59
   1     O&M Circle Guna                 29    4        1         1          1           1          37
   2     O&M Circle Shivpuri             23    3        1         1          1           --         29
         Total Offices in Group G        52    7        2         2          2           1          66
   1     Gwalior Region Office            -    -        1         1          1           1          4
   2     O&M circle Gwalior              30    4        1         1          1           -          37
         Total Offices in Group H        30    4        2         2          2           1          41
  A      Total Offices(A to H)           342   50      16         16        16           3         443


 III.        OFFICES FOR "I" GROUP
S. No.   Office for HT ,,Revenue Audit              No. Of Consumers   No. Of Consumer    No. Of Consumer
                                                        (2015-16)         (2016-17)          (2017-18)
  1.     Accounting Unit City Circle Bhopal                649               657                668
  2.     Accounting Unit O&M Circle Bhopal                 392               410                375
  3.     Accounting Unit O&M Circle Sehore                  67                79                 86
  4.     Accounting Unit O&M Circle Rajgarh                 63                77                 76
  5.     Accounting Unit O&M Circle Betul                   55                59                 62
  6.     Accounting Unit O&M Circle HBad                    95                98                111
  7.     Accounting Unit O&M Circle Vidisha                 39                44                 51
  8.     Accounting Unit O&M Circle Raisen                   -                 -                 61
                       Total                              1360              1424               1490


 IV.         OFFICES FOR "J" GROUP
S. No.   Office for HT ,,Revenue Audit              No. Of Consumers   No. Of Consumer    No. Of Consumer
                                                        (2015-16)         (2016-17)          (2017-18)
  1.     Accounting Unit City Circle Gwalior               182               185                195
  2.     Accounting Unit O&M Circle Gwalior                206               217                237
  3.     Accounting Unit O&M Circle Morena                 138               144                160
  4.     Accounting Unit O&M Circle Bhind                   13                14                 15
  5.     Accounting Unit O&M Circle Guna                    76                82                 91
  6.     Accounting Unit O&M Circle Shivpuri                35                35                 45
  7.     Accounting Unit O&M Circle Sheopur                 5                 6                  7
                       Total                               655               683                750
                    Grand Total                           2015              2107               2240




                                                                                                   39
V.      DETAILED LIST OF CIRCLEWISE DIVISIONWISE DISTRIBUTION CENTRES:
     Region          Circle               Division        S.Mo           DC/Zone
                                                            1    AMBADA
                                                            2    AMLA RURAL
                                                            3    AMLA URBAN
                                                            4    BHIMPUR
                                                            5    BORDEHI
                                     BETUL NORTH DVN
                                                            6    CHICHOLI
                                                            7    GHODA GONGRI
                                                            8    KHEDLI BAZAR
                                                            9    SARNI R & U
                                                           10    SHAHPUR
                                                           11    ATNAIR
                                                           12    BETUL BAZAR
                                                           13    BETUL RURAL
                                                           14    BETUL TOWN URBAN
                                                           15    BHAINSDEHI
                   BETUL CIR         BETUL SOUTH DVN
                                                           16    JHALAR
                                                           17    KHEDISAOLIGARH
                                                           18    PADHAR
                                                           19    SATNAIR
                                                           20    SAWALMENDHA
                                                           21    BISNOOR
      BR                                                   22    DUNAWA
                                                           23    GHATBIROLI
                                                           24    JAULKHEDA
                                                           25    MASOD
                                      MULTAI DIVISION
                                                           26    MULTAI RURAL
                                                           27    MULTAI URBAN
                                                           28    PRABHATPATTNAM
                                                           29    RAIAMLA
                                                           30    SAIKHEDA
                                                           31    BARASIA
                                                           32    GUNGA
                                                           33    DANISHKUNJ
                                                           34    INTKHEDI
              BHOPAL O & M CIRCLE   BHOPAL O&M DIVISION    35    KHAJURI SARAK
                                                           36    LALARIYA
                                                           37    MISROD R
                                                           38    NAZEERABAD R
                                                           39    PARWALIA SADAK
                                                                                    40
                                           40   RATIBAD

                                           41   SUKHI SEWANIYA
                                           42   BUDHNI
                        BUDHNI O&M DN      43   REHTHI
                                           44   SHAHGANJ
                     MANDIDEEP GR CTR DN   45   MANDIDEEP GRWTH CTR
                                           46   LADKUI
                     NASRULLAGANJ O&M DN
                                           47   NASRULLAGANJ
                                           48   Ayodhya Nagar
                                           49   Industrial Gate
                                           50   Karond
                           EAST DN.
                                           51   Chandbad
                                           52   Anand Nagar
                                           53   Bhanpur
                                           54   Bairagarh
                                           55   Bus Stand
                                           56   City Kotwali
                          NORTH DN.        57   Imami Gate
                                           58   Sultania
City Circle Bhopal                         59   Indra Vihar
                                           60   Chhola
                                           61   Arera Colony
                                           62   Kotra
                                           63   MP Nagar
                          SOUTH DN.
                                           64   T.T. Nagar
                                           65   Jahangirabad
                                           66   Bhadbhada
                                           67   Shahpura
                                           68   Shakti Nagar
                           WEST DN.
                                           69   Vidhya Nagar
                                           70   Vallabh Nagar
                                           71   CHARUWA
                                           72   HARDA RURAL NORTH
                                           73   HARDA SOUTH RURAL
                                           74   HARDA URBAN
HOSHANGABAD
                        HARDA DIVISION     75   KARTANA
   CIRCLE
                                           76   KHIRKIYA
                                           77   MASANGAON R
                                           78   RAHAIGARH GAON
                                           79   SIRALI

                                                                      41
                                         80    TIMARNI
                                         81    BAGHWADA
                                         82    DOLARIYA
                                         83    HOSHANGABAD RURAL
                                         84    HOSHANGABAD ZONE 1
                    HOSHANGABAD DIVISI
                                         85    HOSHANGABAD ZONE 2
                                         86    SEONIMALWA R
                                         87    SEONIMALWA URBAN
                                         88    SHIVPUR
                                         89    ARI
                                         90    BABAI
                                         91    GURRA
                      ITARSI DIVISION
                                         92    ITARSI
                                         93    KESHLA
                                         94    PATHROTA
                                         95    BANKHEDI
                                         96    CHANDONE
                                         97    PACHAMARI
                                         98    PIPARIYA NORTH-R
                                         99    PIPARIYA SOUTH
                     PIPARIYA DIVISION   100   PIPARIYA URBAN
                                         101   SANDIA
                                         102   SEMRI HARCHAND
                                         103   SHOBHAPUR
                                         104   SOHAGPUR RURAL
                                         105   SOHAGPUR URBAN
                                         106   BARELI RURAL
                                         107   BARELI URBAN
                                         108   BARI
                      BARELI DIVISION
                                         109   DEORI
                                         110   KHARGONE
                                         111   UDAIPURA
                                         112   CHICKLOD
RAISEN O&M CIRCLE                        113   GOHARGANJ
                    OBEDULLAGANJ DVN
                                         114   MANDIDEEP
                                         115   OBEDULLAGANJ
                                         116   BEGAMGANJ
                                         117   BEGAMGANJ RURAL
                      RAISEN DIVISION    118   DAHEGAON
                                         119   GAIRATGANJ
                                         120   RAISEN R

                                                                    42
                                        121   RAISEN U
                                        122   SALAMATPUR
                                        123   SILWANI
                                        124   BIAORA RURAL
                                        125   BIORA URBAN
                                        126   MALAWAR
                     BIAORA DIVISION    127   SUTHALIA
                                        128   MAU
                                        129   PADLIYAMATA
                                        130   SARANGPUR
                                        131   BODA
                                        132   EKLERA
                                        133   GADIA
                                        134   JHADLA
                    NARSINGHGARH DVN
                                        135   KURAWAR
RAJGARH O&M CIR
                                        136   NARSINGHGARH RURAL
                                        137   NARSINGHGARH URBAN
                                        138   TALEN
                                        139   CHHAPIHEDA
                                        140   KHUJNER
                                        141   PACHORE RURAL
                                        142   PACHORE URBAN
                    RAJGARH BIORA DIV   143   KHILCHIPUR
                                        144   MACHALPUR
                                        145   RAJGARH RURAL
                                        146   RAJGARH
                                        147   ZEERAPUR
                                        148   ASHTA URBAN
                                        149   BHANWARA BAGER
                                        150   HAKIMABAD
                                        151   JAWAR
                     ASHTA DIVISION     152   KHACHROD
                                        153   KOTHARI
                                        154   MAINA
SEHORE O&M CIRCLE
                                        155   METWARA
                                        156   SIDDIQUE GANJ
                                        157   AHMADPUR
                                        158   AMLAHA
                       SEHORE DVN       159   BHAUKHEDI
                                        160   BIJORI
                                        161   BILGISGANJ

                                                                   43
                                               162   BIRJISH NAGAR
                                               163   DIWADIA
                                               164   DORAHA
                                               165   ICHHAWAR
                                               166   KHAJOORI KALAN
                                               167   NAPLAKHEDI
                                               168   SEHORE U
                                               169   SHYAMPUR
                                               170   THOONA
                                               171   BAGRODA
                                               172   BASODA T
                                               173   DUMMY KURWAI
                        GANJ BASODA DIVISION   174   GANJ
                                               175   LATERI
                                               176   SIRONJ
      VIDISHA CIRCLE                           177   TYONDA
                                               178   GYARASPUR
                                               179   MIRZAPUR
                                               180   NATERAN
                          VIDISHA DIVISION
                                               181   SHAMSABAD
                                               182   VIDISHA R
                                               183   VIDISHA URBAN
                                               184   ATAR
                                               185   BHIND RURAL
                                               186   BHIND URBAN
                           BHIND DIVISION
                                               187   ETHAR R
                                               188   PHOOP R
                                               189   UMARI
                                               190   GOHAD RURAL
                                               191   GOHAD URBAN
                          GOHAD DIVISION
                                               192   KIRATPURA
GR   BHIND O&M CIRCLE                          193   MAU
                                               194   ALAMPUR RURAL
                                               195   ASWAR
                                               196   DABOH
                           LAHAR DIVISION
                                               197   LAHAR
                                               198   MIHONA
                                               199   RON R
                                               200   AMAYAN
                         MEHGAON DIVISION      201   BARAHED
                                               202   GORMI

                                                                      44
                                        203   MEHGAON
                                        204   ASHOKNAGAR U
                                        205   AWARI R
                                        206   CHANDERI
                    ASHOK NAGAR DIV     207   ESHAGARH URBAN
                                        208   NAISARI R
                                        209   SHADORA
                                        210   TOMMAN
                                        211   ARON
                                        212   BAJRANGGARH
                                        213   BHADORA
                                        214   BAMORI
                                        215   FATEHGARH
                   GUNA O&M DIVISION
                                        216   GUNA R
                                        217   GUNA URBAN
  GUNA CIRCLE                           218   MYNA
                                        219   PAGARA R
                                        220   RAMPUR R
                                        221   BAHADURPUR
                                        222   MIRKABAD
                      MUNGAWALI
                                        223   MUNGAOLI U
                                        224   PIPARI
                                        225   BINAGANJ
                                        226   CHACHODA
                                        227   JAMNER
                                        228   KUMBHRAJ
                   RAGHOGARH DIVISION
                                        229   MAKSUDANGARH
                                        230   MIRGWAS R
                                        231   RAGHOGARH R &U
                                        232   RUTHAI
                                        233   C.S.S.
                                        234   Baraghata
                     CENTRAL Division   235   C.P.S.S.
                                        236   S.K.C.
                                        237   Laxmiganj
GWALIOR CITY CIR                        238   Morar
                                        239   D.D.Nagar
                      EAST Division     240   Thatipur
                                        241   City Centre
                                        242   Baradari
                     NORTH Division     243   Vinay Nagar

                                                               45
                                      244   Tansen
                                      245   Phoolbag
                                      246   Transport Nagar
                                      247   Ladhedi
                                      248   Kampoo
                   SOUTH Division     249   S. Kampoo
                                      250   Gol pahadiya
                                      251   ANTARI
                                      252   BHITARWAR
                                      253   CHINOR
                                      254   DABRA
                   DABRA DIVISION     255   DABRA R
                                      256   DEORI KALAN
                                      257   KARHAIA
                                      258   PICHORE
                                      259   TEKANPUR
                                      260   BANDONI KHURD
                                      261   BASAI
                                      262   BHANDER
                                      263   DATIA R
                                      264   DATIA U
                                      265   INDERGARH I
GWALIOR O&M          DATIA DIV
   CIRCLE                             266   INDERGARH II
                                      267   SALON R
                                      268   SEONDHA
                                      269   SITAPUR
                                      270   THARAT
                                      271   UNNAO R
                                      272   BARAI
                                      273   GHATIGAON
                                      274   GWALIOR RESII MORAR
                                      275   HASTINAPUR
                 GWALIOR O&M DVN
                                      276   MOHNA
                                      277   MOTIJHEEL
                                      278   SAKHIYA VILAS
                                      279   UTILA
                                            MALANPUR GROWTH
                MALANPUR GR CTR DVN   280
                                            CTR
                                      281   AMBAH R&U
MORENA CIRCLE      AMBAH DIVISION     282   DIMINI
                                      283   KHADIYAHAR

                                                                  46
                                       284   PORSA R&U
                                       285   RACHHED
                                       286   RAJODHA
                                       287   THARA/AMBATT
                                       288   DATTAPURA U
                  MORENA-I O&M DN      289   GANESHPURA R & U
                                       290   MORENA U
                                       291   BAGHCHINI
                                       292   BANMORE
                                       293   HETAMPUR
                  MORENA-II O&M DN
                                       294   JIGNI
                                       295   NOORABAD R
                                       296   SUMAOLI
                                       297   ALAPUR
                                       298   JAORA
                                       299   KAILARAS
                                       300   PAHARGARH
                  SABALGARH DIVISION   301   RAMPUR KALAN
                                       302   SABALGARH R
                                       303   SABALGARH URBAN
                                       304   SUJARMA
                                       305   ZUNDUPURA
                                       306   BHOGI KA TIRAHA
                                       307   DHODAR
                                       308   DHONTI
                                       309   GASWANI
                  SHEOPUR NORTH DIV    310   RAGHUNATHPUR
                                       311   SOIKALAN
                                       312   VEERPUR
SHEOPUR CIRCLE
                                       313   VIJAYAPUR RURAL 2
                                       314   VIJAYAPUR URBAN 1
                                       315   BARODA
                                       316   KARHAL
                  SHEOPUR SOUTH DIV    317   PANDOLA
                                       318   SHEOPUR RURAL
                                       319   SHEOPUR URBAN
                                       320   BHONTI
                                       321   KHANIA DHANA
SHIVPURI CIRCLE   PICHHORE DIVISION    322   KHANIYADHANA RURAL
                                       323   KHOD
                                       324   PCHHORE RURAL

                                                                  47
                               325   PICHHORE
                               326   BAIRAD I
                               327   BAIRAD II
                               328   BAROD 1
         SHIVPURI I DIVISION   329   POHARI II
                               330   POHARI IST
                               331   SHIVPURI RURAL
                               332   SHIVPURI URBAN
                               333   BADARWAS
                               334   DINARA
                               335   KARERA URBAN
                               336   KHATORA RURAL
                               337   KHERAGHAT
          SHIVPURI II DVN
                               338   KOLARAS RURAL
                               339   KOLARAS URBAN
                               340   MAGRONI
                               341   NARWAR
                               342   RANNOD
2   16           50                            342




                                                      48
                                                                                                   ANNEXURE -2
                                                 Format for Price Bid

Price Bid for the Group _____ (Please mention Group A to H whichever is applicable)


                                                                               2015-16 to 2017-18 (LT Revenue Audit)

                                                                                 2016 -17 to 2017-18 (S & E Audit)

                                                                                      2018-19 (Books of A/c)
                                                                                   PV of Area Store March 2019)

                                                                                            Fees ( In Rs.)

              Fees for audit of all Auditee Offices for the block period
              including all T.A. /D.A., Lodging, Boarding, out of pocket
     1        expenses etc. (Excluding GST) complete as per all Terms and
              conditions mentioned in the Tender Document.

     Quoted Fees =                                                                                               (A)

     Total Number of Auditee Offices in the Group                                                                (B)
     Quoted Fees per Auditee Office                                                                              (A)/(B)

   Price Bid for the Group _____ (Please mention I or J whichever is applicable)


                                                                                         For the block period 2015-16 to
                                                                                                      17-18

                                                                                                  Fees (In Rs)

           Fees for audit of all Auditee Offices for a year
           including all T.A. /D.A., Lodging, Boarding, out of
           pocket expenses etc. (Excluding GST) complete as
     1     per all Terms and conditions mentioned in the Tender
           Document.
     2     Total Quoted Fee (A)

     3     No. of Consumers (B)

     4     Quoted Fees per Consumer (C=A/B)


     _____________________________
      (To be signed by an authorized signatory of the Bidder / Consortium Leader, along-with seal of firm)
     Title of Authorized Signatory
     Name of Firm
     Date and Place
                                                                                                                       49
NOTE:

1. The Price Bid shall be submitted as a ,,fixed price quote for the deliverables specified in this document.
2. The Bidder quoting the lowest Quoted Price per Office shall be given the highest score i.e. 100.
3. All prices should be in INR and shall be specified in figures and words and price should be in whole number.
4. It may please be noted that payment shall be released, as specified above in the Tender Document, subject to
   satisfactory progress of the work.
5. If there is a discrepancy between words and figures, the amount in words will prevail. However, if the amount
   quoted in words is not legible or not clear in meaning, MPMKVVCL, Bhopal may consider the amount quoted in
   figures as final. Such offers may also be rejected at the sole discretion of MPMKVVCL, Bhopal.




                                                                                                                50
                                                                                                           ANNEXURE -3
                                            Covering Letter for submission of Bid
                            (The covering letter is to be submitted by the Bidder on its Letterhead)
                                                       (To be kept in envelope 1)
Date:                         .......................................

To,
Chief Finance Officer
O/o MD(CZ), MPMKVVCL,
Nishtha Parisar,Govindpura, Bhopal.

Dear Sir,
Sub:      Bid for Appointment of Internal Auditors at the Region/ Circle Level, MPMKVVCL, Bhopal (Tender
Specification No MD/MK/05/NIT/..... Bhopal, DT .......)

In response to the Notice Inviting Offers, dated ....... issued by MPMKVVCL, we offer PROPOSAL to participate in the bidding
process for selection of the "Internal Auditors at the Circle Level."

We are submitting this PROPOSAL on our own. If selected, we understand that it would be on the basis of the organizational,
technical, financial capabilities and experience as specified in the Tender document.

We understand that the basis for our qualification will be our PROPOSAL, and that any circumstance affecting our continued
eligibility under the Tender document, or any circumstance which would lead or have led to our disqualification under the Tender
document, shall result in our disqualification under this process.

We understand that you are not bound to accept any or all our PROPOSALS you receive.






We declare that we have not entered into any sub-contracting arrangement with any other person or firm including the other
Bidders for the assignment, in connection with the preparation and/or submission of our PROPOSAL for the assignment, or
preparation of the bidding documents.

We submit herewith, authenticated copies of the firms Partnership Deed (as applicable).

We declare that we have disclosed all material information, facts and circumstances to the MPMKVVCL, which would be

relevant to and have a bearing on the evaluation of our PROPOSAL and selection.

We acknowledge and understand that in the event that MPMKVVCL discovers anything contrary to our above declarations; it is
empowered to forthwith disqualify us and our PROPOSAL from further participation in the process.

For information/ clarification Mr. ........... (Name of the Partner) , address, email id, telephone number may be contacted.

We hereby state that we have read and understood the terms and conditions of the Tender document and agree to abide by the
same. We further agree to undertake the said assignment to the satisfaction of MPMKVVCL, Bhopal and as per the terms and
conditions of the tender document.



Yours faithfully,
Partner of the Bidder / Consortium Leader
Name & Seal of Signatory
Address:

Note: Partners of the Partnership Firm will sign the letter.

                                                                                                                               51
                                                                                                            ANNEXURE -4
                                      Letter for submission of cost of tender document and EMD
                                 (The covering letter is to be submitted by the Bidder on its Letterhead)
                                                             (To be kept in envelope 1)

Date:                               .......................................

To,
            Chief Finance Officer
            O/o MD(CZ), MPMKVVCL,
            Nishtha Parisar,Govindpura, Bhopal.

Dear Sir,
Sub:        Bid for Appointment of Internal Auditors at the Region/ Circle Level, MPMKVVCL, Bhopal (Tender
            Specification No MD/MK/05/NIT/........ Bhopal, Dt. ...........)

We are enclosing the following:


       a.    Account payee Demand draft drawn on ................ ) for ` 2,240/- (Rupees Two thousand Two Hundred Forty only), drawn in favor of
            "Sr. Accounts Officer (HOAU), MPMKVVCL" payable at Bhopal, towards cost of tender document.

       b.   Account payee Demand draft drawn on ...................) for
            Rupees (as applicable as per table), drawn in favor of "Sr. Accounts Officer (HOAU), MPMKVVCL" payable at
            Bhopal, towards Earnest Money Deposit.



       Enclosures:
            1.    ..................................
            2.    ..................................
            3.    ..................................

       Thanking You,


       .................................
       (Signature of Partner of the Bidder / Consortium Leader)

       Name...
       Date...
       Place...




                                                                                                                            52
                                                                                                    ANNEXURE -5
Bidders Background and Qualifications ­ Criteria for Technical Evaluation

(A) Details of the Bidder / Consortium Leader and other firms (in case of consortium the consortium leader will be given
70 % weightage and the other partner shall be given 30 % weightage)

S. No.      Particulars                         Information              Enclosures                 Max marks out of 100
1           Name of the Firm                                             Latest Partnership Deed
2           Address of the Head Office of
            the Firm ( Phone No., Email id,
            fax, Mobile No., Address)
3           Firm Registration No. (as                                    Latest constitution
            mentioned in the constitution                                certificate of the Firm
            certificate)                                                 issued by ICAI
4           Whether the Head Office /                                    -do-
            Branch Office is in Bhopal
5           Whether any Office of Operation                              -do-
            is in the Circle of the Group.
6           No. of Branches of the Firm
7           Address of Branches with the
            Date of Opening
8           Number of Full-time Partners
            with the firm
9           Name of the Partners in the firm
            along with their membership
            number issued by ICAI, and the
            year of association with the firm
10          Team Leader to be assigned on                                Biodata with experience
            the assignment with their                                    of the Team Leader
            qualification                                                likely to be assigned to
                                                                         the task
11          No. and name of the                                          Biodata of the Audit
            Professionals to be provided by                              Officers likely to be
            the bidder on the assignment.                                assigned on the task.
12          Turnover                                                     Financial Statements       15
13          Date of Formation of Partnership                             Certificate                15
            Firm
14          Number of Partners                                           Latest Form No. of ICAI    15
15          No. of CA on the rol1 of the                                 -do-                       15
            bidder
16          No. of other paid staff on the                                                          10
            rol1 of bidder
17          Ex-employee of any of the                                                               10
            electrical distribution companies
            in MP (5 Marks per employee
            subject to maximum 10 Marks)
18          Previous Experience of Internal                                                         10
            Audit of any State Electricity
            Distribution Utility

17          No. of Articles Trainees                                                                10


Note : 1. Documentary evidence is to be provided in support of the above criteria.
       2. Full marks will be given to the firm scoring the highest of the respective criteria. Lower
       marks will be proportionately be given to other firms. Eg: If firm "a" has the maximum
       turnover has the overall turnover of Rs. 70 Lacs, Firm "a" will get full marks i.e. 20 marks, say
                                                                                                                     53
            firm "b" has an overall turnover of Rs 55 Lakhs will get 15.71 marks as per calculation
            (55/70)*20.

B) Financial Statements of the bidder

Details of the Bidder / Consortium Leader

S. No.          Particulars                         2015-16                    2016-17                    2017-18
1               Total Assets
2               Total Liabilities
3               Net worth
4               Annual Turnover
5               Total expenditure
6               Depreciation
7               PBT (Profit before tax)
8               PAT (Profit after tax)



Note:

1. Attach copies of the audited financial statements of the last 3 financial years.

2. Attach photocopies of Income Tax returns of the firm for last 3 financial years.

(C) Credentials of the Bidders

a) A brief "Profile" of the Firms Practice and experience giving the following details clearly:

            Details of the assignment / projects undertaken by the bidder in the last 10 years with the
            following information

  1      Assignments undertaken.
  2      Form of organization (Partnership/ Proprietary/Company).
  3      Nature of Operation of the organization
  4      Experience/Completion Certificates of Statutory / Internal Audit from at least three clients out of the Clients as mentioned
         above.



            Curriculum Vitae of the Individual Experts, Team Leader and the Audit Officers proposed
            on the engagement.




                                                                                                                             54
                                                                                                          ANNEXURE -6
                              (This undertaking is to be submitted along with the Technical Bid.)
                    (This undertaking should be on a non-judicial stamp paper of requisite value duly notarized)

To,
            Chief Finance Officer,
            O/o MD(CZ), MPMKVVCL,
            Nishtha Parisar, Govindpura, Bhopal.

Dear Sir,

Sub:       Bid for Appointment of Internal Auditors for ............ Circle, MPMKVVCL, Bhopal (Tender Specification
           No.MD/MK/05/NIT/....... Bhopal dtd :.......)

           This undertaking is submitted in respect of the appointment of Internal Auditors for Circle Office of MPMKVVCL,
           Bhopal, in response to the tender document dated ....... issued by MPMKVVCL, Bhopal and subsequent amendment
           thereof.

We hereby confirm that:

1.          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.
2.          We have no pending or contemplated legal suit or criminal cases on grounds of 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. Under such
circumstances, however, we acknowledge and accept the right of MPMKVVCL to encash our EMD.

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. Under such circumstances, however,
we acknowledge and accept the right of MPMKVVCL to encash our security deposit.




.....................................................
(Signature of the Partner of the Firm/ Consortium Leader)

Name...
Date...
Place...




                                                                                                                               55
                                                                           ANNEXURE -7
Format for Clarification in Tender Document

              Clause no. and existing
 Sl. No.                                Clarification required   Rationale for the clarification
                    provision




                                                                                            56
                                                                                                     ANNEXURE -8
(b) ,,Composite Report format for the Audit of Auditee Office

                                             ............ Auditee Office

   Audit Dates
   Audit Firm
   Partner in Charge
   Manager
   Team Leader
   Audit Team
   Report discussed and finalized on
   A.   Contents

   B.   Executive Summary
        A summary shall be included classifying issues as      The issues shall also be classified on the basis of their nature as
        follows                                                Design deficiency, Operational inefficiency, System Deficiency.

        Priority I Issues                                      This shall include issues requiring Immediate Implementation /
                                                               Compliance & having high business impact.




        Priority II Issues                                     This shall include issues requiring Implementation / Compliance
                                                               in medium & Long term & having low business impact.

   C.   Current Year Issues
        Sr. No       Issue / Root Cause                        Implication/ Risk    Recommendation           Management
                                                                                                             Response




   D.   Follow-up of Previous Reports
        Sr. No.      Summarized           Agreed             Current                Current                  Current
                     Agreement            Implementation     Implementation         Recommendation           Implementation
                                          Date               Status                                          Plan




                                                                                                                          57
Audit Dates




E.   Category wise list of audit short claims
     Category of consumer                                      Audit short claim            Remarks
                                        Energy Charges       Interest              Others




     .................................
     (Signature of Partner of the Bidder / Consortium Leader)

     Name:                  ...................................
     Date:                  ...................................
     Place:                 ...................................




                                                                                                      58
                                                                                ANNEXURE -9
         Schedule of Opening of Financial Bids


Group   Region/ Circle Office
  A     Bhopal City Circle + O&M Circle Vidisha
  B     O&M Circle Sehore + O&M Circle Rajgarh
  C     O&M Circle Betul + O&M Circle Hoshangabad
  D     Bhopal Regional Office + O&M Circle Bhopal (Including Raisen Circle)
  E     Gwalior City Circle + O&M Circle Sheopur
  F     O&M Circle Bhind + O&M Circle Morena
  G     O&M Circle Guna + O&M Circle Shivpuri
  H     O&M Circle Gwalior + Gwalior Regional Office
   I    HT Revenue Audit Bhopal Region:-
                              (ix) City Circle Bhopal
                              (x) O&M Circle Bhopal (Including Raisen Circle)
                              (xi) O&M Circle Sehore
                              (xii) O&M Circle Rajgarh
                              (xiii)        O&M Circle Betul
                              (xiv)         O&M Circle Hoshangabad
                              (xv) O&M Circle Vidisha
  J     HT Revenue Audit Gwalior Region:-
                              (viii) Gwalior City Circle
                              (ix) O&M Circle Gwalior
                              (x) O&M Circle Bhind
                              (xi) O&M Circle Morena
                              (xii) O&M Circle Guna
                              (xiii) O&M Circle Shivpuri
                              (xiv) O&M Circle Sheopur




                                                                                         59
                                                                                     ANNEXURE -10
Indicative Performance Parameters of the work of Internal Auditor

The performance of the Auditor shall be determined based on the following parameters:
              Feedback from the competent authority of the Company;
              Elapsed time for issue of reports ­ completion of audit work to draft report;
              Elapsed time for issue of reports ­ draft to final report;
              % unsatisfactory audit opinions (not more than 10%);
              % of recommendations accepted (not less than 50% - 70%);
              Number of repeat audit findings;
              Amount of direct savings potential as a result of audits;
              Amount of measurable savings achieved as a direct result of audits;
              Number of major process improvements implemented as a result of audits;
              Extent of reliance External audit can place on Internal Audit;
              Extent of advice given; and
              Number of best practice ideas shared
In addition to the above list, the Internal Auditor is also expected to follow and meet the minimum
standards for Internal Audit as prescribed from time to time.




                                                                                                      60
                                                                                       ANNEXURE -11



              ON LETTER HEAD OF THE CONCERNING AUDITEE OFFICE
                         (To be issued by DC/Zone In charge)



                   CERTIFICATE OF COMPLETION OF INTERNAL AUDIT

I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the LT Revenue audit of ( Name of DC/Zone) for the period __________
from _____ to _________ as per order No. ________________ dated ___________.

 It is further certified that we have discussed at length the observations raised by the Audit and the
initial result of our discussion is as under:-

1) No. of Para raised by audit

      Particulars                             No. of Para                              Amount
    With Recovery
   Without Recovery                                                                      N/A
   Total No. of Paras

2) Para which is accepted/not accepted
   Particulars                  No. of Para                                      Amount
                        Accepted        Not Accepted                Accepted              Not Accepted
 With Recovery
Without Recovery                                                       N/A                      N/A
     Total

3) Paras on which opinion of Division office is required and comments of division on Paras Not
   Accepted by the Dc/Zone in charge are separately enclosed as "Annexure-A".

   Further, it will be ensured on our part that the demand against accepted Paras (with recovery) will be
   raised in the next billing cycle and the compliance will be sent within 30 days.

   Date: -                                                        (Seal & Signature of Office in charge)
   Place: -                                                               Name of Office

   It is certified that we have discussed with the DC/Zone in charge and his/her views are duly
   incorporated above.

   Date: -                                      (Seal of CA Firm & Signature of Audit Officer)
   Place: -                                                             Name Of Audit Officer

                       (This Document will be prepared by the Audit Team of CA Firm)

                                                                                                            61
                                   "Annexure-A"
       1) Paras Not Accepted by DC/Zone:-
    Para No.      Brief Description of Para             Amount involved        Agreed/Not Agreed by
                                                                               comments of DC/Zone




       2) Paras on which opinion of division office is required:-

Para No.          Brief Description of Para              Amount involved             Opinion of Division




       Date: -                                  (Seal & Signature of Office DC/Zone in charge)
       Place: -                                                          Name of Office




       Date: -                                  (Seal & Signature of Division in charge)
       Place: -                                                          Name of Office

                          (This Document will be prepared by the Audit Team of CA Firm)




                                                                                                           62
                          ON LETTER HEAD OF THE CONCERNING DIVISION
    (To be issued by the Divisional Engineer for System & Expenditure Audit of their Division)

                   CERTIFICATE OF COMPLETION OF INTERNAL AUDIT



I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the audit of System & Expenditure of ( Name of Division) for the period
__________ from _____ to _________ as per order No. ________________ dated ___________.

 It is further certified that we have discussed at length the observations find out by the Audit and the
initial result of our discussion is as under:-

1) No. of Para raised by audit

        Particulars                           No. of Para                            Amount
      With Recovery
     Without Recovery                                                                  N/A
     Total No. of Paras

2) Para which is accepted/not accepted
    Particulars                  No. of Para                                   Amount
                        Accepted         Not Accepted              Accepted          Not Accepted
  With Recovery
 Without Recovery                                                     N/A                    N/A
      Total

3) Paras on which opinion of Circle office is required and comments of Circle on Paras Not Accepted
   by the Division in charge are separately enclosed as "Annexure-AA".

   Further, it will be ensured on our part that the demand against the accepted No. of Paras (with recovery)
   will be recovered and the compliance will be sent within 30 days.



   Date: -                                      (Seal & Signature of Division in charge)
   Place: -                                                              Name of Office

   It is certified that we have discussed with the DC/Zone in charge and his/her views are duly
   incorporated above.

   Date: -                                      (Seal of CA Firm & Signature of Audit Officer)
   Place: -                                                             Name Of Audit


                       (This Document will be prepared by the Audit Team of CA Firm)

                                            "Annexure-AA"



                                                                                                               63
   3) Paras Not Accepted by the Division:-
Para No.      Brief Description of Para             Amount involved         Agreed/Not Agreed by
                                                                            comments of Division




   4) Paras on which opinion of Circle office is required:-

Para No.        Brief Description of Para           Amount involved           Opinion of Circle




   Date: -                                   (Seal & Signature of Office DC/Zone in charge)
   Place: -                                                           Name of Office




   Date: -                                   (Seal & Signature of Division in charge)
   Place: -                                                           Name of Office




                      (This Document will be prepared by the Audit Team of CA Firm)




                                                                                                   64
                             ON LETTER HEAD OF THE CONCERNING DIVISION
 (To be issued by the Divisional Engineer for LT Revenue Audit of the DCs under their Division)



                   CERTIFICATE OF COMPLETION OF INTERNAL AUDIT



It is certified that we have gone through of all the reports of internal audit of LT revenue of the DCs/
Zones under the jurisdiction of this division submitted by M/s (Name of CA Firm) and discussed at
length the observations raised by the Audit. The following reports are discussed with the auditors:-



Sl. No.       Name of DC/Zone                              Remark if Any




   Date: -                                   (Seal & Signature of Office in charge)
   Place: -                                                           Name of Office




                       (This Document will be prepared by the Audit Team of CA Firm)




                                                                                                     65
                     ON LETTER HEAD OF THE CONCERNING ACCOUNTING UNIT
                     (To be issued by the Sr. AO/AO for HT Revenue Audit of their Circle)

                      CERTIFICATE OF COMPLETION OF INTERNAL AUDIT



I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the HT Revenue audit of ( Name of Circle) for the period __________ from
_____ to _________ as per order No. ________________ dated ___________.

 It is further certified that we have discussed at length the observations find out by the Audit and the
initial result of our discussion is as under:-

1) No. of Para raised by audit

        Particulars                           No. of Para                            Amount
      With Recovery
     Without Recovery                                                                  N/A
     Total No. of Paras

2) Para which is accepted/not accepted
    Particulars                  No. of Para                                   Amount
                        Accepted         Not Accepted              Accepted          Not Accepted
  With Recovery
 Without Recovery                                                     N/A                    N/A
      Total

3) Paras on which opinion of Circle office is required and comments of Circle on Paras Not Accepted
   by the office in charge are separately enclosed as "Annexure-AA".

   Further, it will be ensured on our part that the demand against the accepted No. of Paras (with recovery)
   will be recovered and the compliance will be sent within 30 days.



   Date: -                                                          (Seal & Signature of RAO)
   Place: -                                                               Name of Office

   It is certified that we have discussed with the Sr. AO/ AO and his/her views are duly incorporated
   above.

   Date: -                                         (Seal of CA Firm & Signature of Audit Officer)
   Place: -                                                             Name Of Audit


                       (This Document will be prepared by the Audit Team of CA Firm)




                                                                                                               66
                                         "Annexure-AA"


   4) Paras Not Accepted by the RAO:-
Para No.      Brief Description of Para             Amount involved          Agreed/Not Agreed by
                                                                              comments of RAO




   5) Paras on which opinion of Circle office is required:-

Para No.        Brief Description of Para           Amount involved            Opinion of Circle




   Date: -                                                    (Seal & Signature of Sr.AO/AO)
   Place: -                                                             Name of Office




                      (This Document will be prepared by the Audit Team of CA Firm)




                                                                                                    67
                                                                                          ANNEXURE -12
PROFORMA OF BANK GUARANTEE FOR CONTRACT PERFORMANCE
(To be stamped in accordance with stamp Act)
Ref: ............................ Bank Guarantee No..................
Dated.....................................
To,
Chief Financial officer ,
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company ltd.
Nishtha Parisar, Govindpura, Bhopal
Madhya Pradesh.

Dear Sirs,

In consideration of Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. (hereinafter referred
to as the ,,Owner which expression shall unless repugnant to the context or meaning thereof include its
successors, administrators and assigns) having awarded to M/S
...................................................with its registered/Head office at
........................... (Herein after referred to as the internal auditor which expression shall unless
repugnant to the context or meaning thereof, include its successors, administrators, executors and
assigns), a Contract by issue of Owners Letter of Award
No..............................dated ...............and the same having been unequivocally accepted by the
internal auditor, resulting in a Contract bearing No......................Dated.....................Valued at
.............................for...........................(Scope of Contract) and the inter auditor having agreed
to provide a Contract Performance Guarantee for the faithful performance of the entire Contract
equivalent to ................ (%)................. (Percent) of the said value of the Contract to the Owner.
We .................................................................................... (Name and Address of the
Bank).
Having its Head Office at ........................(hereinafter referred to as the ,,Bank which expression
shall, unless repugnant to the context or meaning thereof, include its successors, administrators, executors
and assigns) do hereby guarantee and undertake to pay the Owner, on demand any and all monies payable
by the internal auditor to the extent of................................as aforesaid at any time
upto.............................(days/month/year) without any demur, reservation, contest recourse or protest
and/or without any reference to the Internal auditor.
Any such demand made by the owner on the Bank shall be conclusive and binding notwithstanding any
difference between the owner and the internal or any dispute pending before any Court, Tribunal,
Arbitrator or any authority. The Bank undertakes not to revoke his guarantee during its currency without
previous consent of the Owner and further agrees that the guarantee herein contained shall continue to be
enforceable till the Owner discharges this guarantee.
The Owner shall have the fullest liberty without affecting in any way the liability of the
Bank under this guarantee, from time to time to extend the time for performance of the contract by the
internal auditor. The Owner shall have the fullest liberty, without affecting this guarantee to postpone
from time to time the exercise of any powers vested in them or any right which they might have against
the internal auditor, and to exercise the same at any time in any manner and either to enforce or to for bear
to enforce any covenants, contained or implied, in the Contract between the Owner and the Internal
auditor or any other course or remedy or security available to the owner. The Bank shall not be released
or its obligations under these presents by any exercise by the Owner of its liberty without reference in the
matters aforesaid or any of them or by reason of any other Act of omission or commission on the part of
the Owner or any other indulgences shown by the Owner or by any other matter or thing whatsoever
which under law would but for this provision have the effect of relieving the Bank.

                                                                                                               68
The Bank also agrees that the Owner at its option shall be entitled to enforce this guarantee against the
Bank as a principal debtor, in the first instance without proceeding against the internal auditor and
notwithstanding any security or other guarantees the owner may have in relation to the Internal auditors
liabilities.
Notwithstanding anything contained herein above our liability under this guarantee is
restricted to............................And it shall remain in force upto and including........and shall be
extended from time to time for such period as may be desired by M/S ........................................
On whose behalf this guarantee has been given.
Dated this.........................Day of........................2016 at.......................

WITNESS
............................. ..................................
(Signature) (Signature)
............................. ...................................
(Name) (Name)
...................................
(Official Address) (Designation with Bank Stamp)
Attorney as per Power Of
Attorney No:..........................
Date:...................
Note:
This sum shall be 10% of the annual quoted fees.
The date will be One Hundred and Twenty days (120 days) after the end of Warranty Period as specified
in the Contract.
The stamp papers of appropriate value shall be purchased in the name of issuing firm.




                                                                                                         69
                                                                                                        Annexure-13
                                                       Agreement
This Agreement is made at Bhopal on the .............................. between Madhya Pradesh Madhya
Kshtera Vidyut Vitran Company Limited, a Company Incorporated under the Companies Act 1956
and having its Registered Office at Nishtha Parisar, Govindpura Bhopal-462023 (Hereinafter referred to
as "MPMKVVCL" and the Regional Office at Bhopal & Gwalior. Which expression shall unless
repugnant to the context a meaning there of be deemed to mean and include its successors and assignees
as the first party.

AND

............................................,   Chartered            Accountant        having    Head    Office   at
.............................................................................................and Branch Office at
.................................................................................(Hereinafter referred to as, Which
Expression shall unless repugnant to the context a meaning thereof be deemed to mean and include its
successors and assign) as the Second Party.



WHEREAS

WHEREAS MPMKVVCL has been incorporated a wholly owned undertaking of Govt. of Madhya
Pradesh and is entrusted with the task of sub-transmission and distribution of electricity in the territorial
areas comprising all the district within the administrative jurisdiction of the four divisional
commissionaires of Madhya Pradesh namely Bhopal, Hoshangabad, Gwalior and Chambal.

b)       And         whereas           the      client      had         issued   an            enquiry    vide   No.
....................................................................   for outsourcing         the internal audit of
Region/Circle Office to the Chartered Accountant firm.

c) And therefore, in response the auditor has offered his rate to the client. The client after evaluating rate
issued a letter of award to participant auditor vide ....................................... Bhopal, dated
....................... to give his consent in case they are interested to conduct the internal audit of Group
No ................... of the Company on the rate as approved by the Company as per letter of Award.

d) That the auditor is .......................................... the firm is registered in ICAI and his registration
No.       is    ...........................      The      Head        Office      of       the      Firm        is     situated
.......................................................................................................................

........................................................................................................................

e) That the auditor here by confirms that:

         The firm has 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.


                                                                                                                            70
          The firm has no pending or contemplated legal suit or criminal cases on grounds of turpitude or
          for violation of any other law in force.
          The firm understands and agrees that if the information furnished by the auditor is found to be
          incorrect at any stage during tenure of audit, the contact is liable to be terminated unilaterally,
          with the cost and liability to the auditor.

 f) From the service commencement date the firm shall provide the services in accordance with the terms
 of this agreement & tender document and will ensure that with effect from the services commencement
 date, team of persons are available to provide the services as per the requirements of the tender
 documents.

 g) The firm agrees that it will follow and comply with any reasonable instruction, direction or requests
 given or issued which are consistent with the terms of this agreement by MPMKVVCLs relevant
 authorized representative in writing or, where it was reasonably impracticable to do so in writing, given
 orally and subsequently confirmed in writing by such authorized representative in connection with the
 performance of the services.

 h) In accordance with the said allotment, the auditor will arrange to conduct the Internal Audit of Group
 no...................... in accordance with the scope, process, procedure of collecting, analyzing,
 interpreting and documenting so as to ensure the objectivity of internal controls.

 i) The firm shall perform the services in accordance with the services levels as part of the scope of
 services in the tender document. If the firm to meet the services levels as per scope of services, the form
 shall as soon as reasonably practicable:-

            Identify the cause of such failure;
            Take such action as is reasonably required to minimize the impact of the failure and to prevent
            it from recurring;
            Where possible, correct the failure ; and

       Advice MPMKVVCL, of the status of the remedial efforts being undertaken for meeting the
       services levels as per scope work.

j) The head of department (HOD) of the Office to be audited will arrange all the records as may be
demanded in writing by the auditor for his examination as per rules and regulations applicable for the
time being in force.

k) As per the outcome of the examination of the records the irregularity, infringement, deficiency and
manipulations observed if any will be pointed out and reported through half margin (HM) to the Head of
Department for clarifications etc.

l) The Head of department of whose office being audited will arrange the reply of HM within 48 hrs. The
reply / clarification given by the HOD will be examined by the auditor in context to the observations. If
the reply is found convincing, satisfactory and meeting the requirement of the observations the Para will
be dropped. The audit Para which are not dropped will be converted into draft Para for inclusion in the
audit report.

                                                                                                          71
m) On completion of audit of the allotted office, the auditor will prepare a draft audit report on the basis
of clause-(h, i & j) above and discuss with the head of department (HOD) audited. According to outcome
of the discussion the draft Para will be finalized for preparation of audit report.

The audit report so prepared will be supported with subsidiary annexure to make the audit report
comprehensive and justifiable.

n) Confidentiality:

        All data, information audit plans and reports will be regards as strictly confidential and for the
        client and their representatives only.
        For the avoidance of doubt, no details whatsoever of the clients business obtained during the
        course of the audit shall be divulged to any unauthorized third party, without prior written
        permission of the Director (Finance) or his designated office.
        In the event of material breach of confidentiality provisions the client shall have the right to
        terminate the services upon giving written notice to the effect.
        All Audit files, working papers, reports and other documents specifics to the client shall remain
        the property of the client/ all archives/ material will be stored on the clients property or such
        other location as authorized by the client.
        All current audit files, working papers, reports and other documents specific to the client will be
        held by the auditor in secure locked filing cabinets located in designated Internal Audit
        accommodation.

o) The Auditor shall abide himself to arrange payment in accordance with the rate as shown in letter of
award no..................................... Bhopal, Dated...........2017. The auditor shall invoice
MPMKVVCL, for the charges as laid out in the tender document.
p) Force Majeure event means any event beyond the reasonable control of the affected party, Force
Majeure event includes, but is not limited to, acts of god, expropriation or confiscation of facilities, any
form of government intervention, war, hostilities, rebellion, terrorist activity, local or national emergency
(including an emergency services to a hospital), sabotage or riots, and floods, fires, explosions or other
catastrophes.
      Force Majeure does not include:
                Strikes or other industrial action by employees of MPMKVVCL or the vendor; or
                Any act or omission of partys employees, agents, or subcontractors (Except to the
                   extent that Person is affected by force majeure events.)
 q) Neither party shall be responsible for failure to, or delay in, carrying out any of its duties under this
 agreement to the extent to which this is caused by a force majeure event.
 r) Should a Force Majeure Event occur, the affected party shall:
      Take all reasonable steps to overcome and mitigate the effects of the Force Majeure Events as
         soon as reasonably practicable, including actively managing any problems caused or contribute
         to by third parties and liaising with them;
 s) On becoming aware of the Force Majeure event promptly inform the other in writing of the details and
 provides information of the force majeure event and information about which services have been
 affected to the extent that such information is known, together with, if practicable, an estimate of the
 period during which the force majeure event will continue; and notify the other as soon as it becomes
                                                                                                           72
aware that the force majeure event hast stopped. If the force majeure event continues for more than 15
calendar days, the unaffected party may terminate this agreement by giving 15 calendar days written cost
or liability to the other party (except in respect of antecedent breaches).
t) Nothing in this clause shall suspend MPMKVVCLs obligation to pay the charges in accordance with
this agreement in respect of any portion of the services provided by the firm to MPMKVVCL not
affected by a force majeure event.
u) Any dispute arising out of the contracts which have not been amicably settled by mutual discussion
shall only be referred to the arbitration in accordance with arbitration and conciliation Act 1956.
v) The contract shall commence w.e.f. the date of signing of the contract and shall be valid initially for a
period of.............................
w) MPMKVVCL, Bhopal reserves the right to cancel the contract without assigning any reasons thereof
without any liability of any party.
x) The auditor will raise no objection for termination of contract by client, in case of any information
provided by the auditor is found contrary to eligibility criteria, at any stage during the validity of
contract, and agrees to compensate all the damages and cost incurred by client, on termination and
retendering.
Signed on this ................................................. In presence of the witnesses as shown below:-


(Auditor)
M/s..........................................                            Chief Finance Officer
Chartered Accountants                                              for and on behalf of MPMKVVCL




Witness (1)                                                        Witness (2)

1.                                                                  1.




2.                                                                  2.




                                                                                                           73

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