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FERRO SCRAP NIGAM LIMITED
(A Govt. of India Undertaking, Mini Ratna-II, IMS Certified Company)
Regd.Office: FSNL Bhawan, Equipment Chowk,
Central Avenue, Post Box No.37, Bhilai-490 001(C.G.)
Phone: 0788-2222474, 2222475
Fax: 0788-2223884, 2220423
e-mail: gc.naidu@fsnl.co.in Website: www.fsnl.nic.in
./Tender Notice No. TN-05/2019-20 Dt.31.08.2019
TENDER DOCUMENT
For
ENGAGEMENT OF INTERNAL AUDITORS FOR THE
FINANCIAL YEAR 2020-21, 2021-22 & 2022-23
Annexure Description Page No.
NIT, Eligibility Criteria/Evaluation Criteria,
Terms and Conditions, Tender Submission, etc. 2-6
7
I Format of Covering Letter
8-9
II Proforma for Techno-Commercial Bid
10-16
III Scope of Work for Internal Auditors
17
IV Proforma for Price Bid
18
V List of units Cluster wise of FSNL
19-22
VI Format of Integrity Pact
VII GST Details 23
VIII GST Compliance 24
IX Make In India 25
LAST DATE FOR BID SUBMISSION 30.09.2019 TIME 2.30 PM.
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SUBJECT: NOTICE INVITING TENDER FOR ALLOTMENT OF INTERNAL AUDIT
FOR THE YEAR 2020-21, 2021-22 & 2022-23
1. Ferro Scrap Nigam Limited(FSNL), a Government of India Undertaking having its
Units at Bhilai(Chhattisgarh), Bokaro (Jharkhand), Burnpur, Durgapur (West Bengal),
Duburi, Rourkela (Odisha), Visakhapatnam(Andhra Pradesh), Salem (Tamil Nadu),
Hyderabad , Mumbai(Maharashtra), Haridwar (Uttarakhand), Hazira (Gujarat) and
Corporate Office in Bhilai (Chhattisgarh) invites offer from reputed Audit Firms to provide
service as Internal Auditor of FSNL for the financial years 2020-21, 2021-22 & 2022-23 on
the same rate, terms & conditions.
(i) The tender document that can be downloaded : 31.08.2019
from FSNL's website: www.fsnl.nic.in will be
available for download from
(ii) Last date of Submission of Tender Document : 30.09.2019 by 2.30 PM
(iii) Date of opening of Techno Commercial Bid : 30.09.2019 by 3.00 PM
2. SCOPE OF WORK:
The scope of Internal Audit of FSNL for the Financial Year 2020-21, 2021-22 &
2022-23, will be as per Annexure-III.
3. FEES:
Fees and out of pocket expenses should be quoted separately on lump sum basis
per year. Fees should be quoted exclusive of Goods and Service Tax. The rates
to be quoted as per Cluster mentioned in Annexure IV & it should be kept firm for
all the years (i.e. 2020-21, 2021-22 & 2022-23).
4. PAYMENT TERMS:
Payment will be made on quarterly basis on submission of bill.
5. ELIGIBILITY CRITERIA (certified copy of tesimonial to be enclosed):
a) The Audit Firms should be in existence for a minimum period of five years and
the Annual Turnover of audit firm should be at least Rupees Twenty Five Lakhs
(Rs.25,00,000/-) .
For the purpose of ascertaining parameter of Turnover of the bidder, average
turnover of the bidder for the previous three financial years shall be considered.
In the techno-commercial bid, the bidder shall submit a `certificate of
compliance' to the effect of the above.
b) Should have Headquarters/Branch Office in Bhilai/Durg/Raipur.
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c) No. of qualified Assistants (Chartered/Cost Accountants) employed in the firm
should not be less than 2 persons. In case of Partnership firm Nos. of Partners
can also be considered in this purpose.
d) No. of semi-qualified Assistants (Chartered/Cost Accountants) employed in the
firm should not be less than 4 persons.
e) Firms need to quote on Cluster Basis as mentioned in Annexure IV.
f) The Company reserves its right to accept or reject any bid(s) without assigning
any reasons thereof. The decision of the Company will be final and binding
upon the parties participating in the tender.
6. TERMS AND CONDITIONS:
a) Validity of job order: The validity of the contract will be for a period of three
years starting from financial year 2020-21 for conducting Internal Audit.
b) Completion of Job: Time being the essence of the contract, all the Internal Audit
of each quarter shall be completed within the next month after completion of the
each quarter. It is also expected that the Internal Audit has to commence w.e.f.
the award of the work.
c) Payment Terms: Payment shall be released within 30 working days from the
date of submission of bill by the Firm(s) after issuance of Internal Audit Report
to the satisfaction of FSNL. No advance payment shall be made.
d) Acceptance/Rejection of Bids: The Management of FSNL reserves the right to
reject all or any bids without assigning any reason whatsoever.
e) Termination of contract in case of non-compliance of terms & conditions of
engagement or non-submission of report in time or unsatisfactory performance.
f) Evaluation of the firms will be made Cluster wise.
g) Dispute: In case of any dispute arising during execution of contract, an
amicable solution may be arrived at with discussion and reconciliation.
However, in case of any dispute remaining unresolved, decision of
Management of FSNL will be final and binding on both the parties to the
Contract.
h) Firms who fulfill the above minimum criteria may download the Tender
Document from www.fsnl.nic.in.
i) Offer submitted without Integrity Pact will be summarily rejected without
assigning any reason.
j) Audit firms to whom the work will be awarded shall not be allowed to
subcontract the work to any other parties either in part or full.
k) Reports are to be submitted to General Manager(F&A), FSNL as per scope of
work.
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7. TENDER SUBMISSION:
Tender will be submitted in `TWO' separate sealed envelopes as below:
All the two (2) envelopes should be numbered clearly and super scribed with our
Tender ref. number, date, Title, Bid opening Date and bidder's name and address.
All the two (2) envelopes may be enclosed within a single envelope; however
bidder should mention the related details on each envelope.
Envelope-I shall consist of forwarding letter in (Annexure-I) and Qualifying
Requirement (QR)/Eligibility criteria documents, Technical offer, Name of firms
where such services have been provided, PAN, GST registrations & commercial
terms & conditions in Annexure II. Envelope-I should be superscribed as
""TECHNO-COMMERCIAL BID".
Envelope-II shall consist of Price Bid (as per Annexure-IV) duly superscribing as
"PRICE BID".
Above two envelopes enclosed in the one envelop clearly superscribing Tender
details and contents inside the envelope (Envelope-I & Envelope-II) details shall be
submitted by the bidder on schedule date and time as indicated in Tender.
8. TENDER OPENING:
a) Complete Schedule/Submission Schedule
(i) The tender document that can be downloaded
from FSNL's website: www.fsnl.nic.in will be
available for download from : 31.08.2019
(ii) Last date of Submission of Tender Document : 30.09.2019 BY 2.30 pm
(iii) Date of opening of Techno-Commercial Bid : 30.09.2019 AT 3.00 pm
(iv) Date of opening Price bid : Will be intimated to the
Successful bidders.
Two part bidding system shall be followed for the subject Tender.
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First Part of Opening:
b) Envelope-I : QR documents/Techno-Commercial offer will be opened at
30.09.2019 BY 3.00 PM
Note:
(i) All the supporting documents should be certified/attested by the
bidder.
(ii) In case any bidder fails to submit the documents in support of
qualifying requirements (QR), the offer of the bidder shall be rejected
and his price bid shall not be opened.
Second Part of Opening:
Envelope-II: The Price bids (Annexure-IV) of only those bidders who
qualified technically & commercially only shall be opened. Opening date will
be informed separately.
Tenders shall be opened in presence of bidder/s, who may wish to be
present.
c) Submission of Bid: The Interested Firms may send their offer with all
applicable attachments in sealed envelope marked with `OFFER FOR
WORK OF INTERNAL AUDITORS FOR FY 2020-21, 2021-22 and 2022-23'
along with documentary evidences in support of their details furnished
above to reach this office latest by 2.30 PM on or before 30.09.2019. The
offer should be submitted to the following address:
General Manager (MM),
Ferro Scrap Nigam Limited,
FSNL Bhawan,
PB No.37,
Equipment Chowk, Central Avenue,
Bhilai-490 001 (C.G.)
Note: Application received after the above mentioned date will not be considered.
Bidders are requested to visit our website regularly for any
amendment/addendum/corrigendum/extension until last date.
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9. COMMERCIAL REJECTION CRITERIA:
1. Bid should be submitted in Two Bid system in two separate envelopes. The
offers of the bidders indicating/disclosing prices in techno-commercial bid
(unpriced bid) or at any stage before opening of price bid shall be straightaway
rejected.
2. Telex/Telegraphic/Fax/e-Mail/Xerox/offers and bids with scanned signature.
Original bids which are not signed manually.
3. Offers which do not confirm unconditional validity of the bid for 90 days from
the date of opening of bid.
4. Offers where prices are not firm during the entire duration of the contract
and/or with any qualifications.
5. Non-submission of Integrity Pact, duly signed by the same signatory who signs
the bids as required.
10. TENURE OF THE CONTRACT:
It will be for 3 Financial years i.e. 2020-21, 2021-22 & 2022-23.
11. INTEGRITY PACT:
Integrity Pact in Annexure VI.
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ANNEXURE-I
(On letter head of Firm)
Format of Covering letter
Date:
To
.................(Designation)
................,(address)
Sub: Quotation for..........................................
Dear Sir,
We enclose herewith the Particulars and Details of the Firm, Techno-Commercial bid and
price bids in connection with the above assignment.
We also state as follows:
a. We hereby declare that all the information and statements made in this Proposal
are true and accept that any misinterpretation contained in it may lead to our
disqualification.
b. The prices quoted by us in the price bid are valid for 90 days from the date of
opening of bid. We confirm that this proposal will remain binding upon us.
c. Prices have been arrived independently without consultation, communication,
agreement or understanding (for the puspose of restricting competition) with any
competitor.
d. We agree to bear all costs incurred by us in connection with the preparation and
submission of the offer and to bear any further pre-contract costs.
e. We understand that M/s.FSNL is not bound to accept the lowest or any proposal or
to give any reason for award, or for the rejection of any proposal.
f. I confirm that I have authority of.......................(name of the firm) to submit the
proposal and to negotiate on its behalf.
Thank you,
(Name of Authorised Signatory) and membership no.
Name of Firm.
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ANNEXURE-II
(On letter head of Firm)
PROFORMA FOR TECHNO COMMERCIAL BID (For conducting Internal Audit of FSNL
for the Financial Years 2020-21, 2021-22 & 2022-23) containing the following details:
Sl. PARTICULARS Details
No. (Supporting Documents
where applicable are
required to be submitted
along with this form)
1. Compulsory Conditions:
i) Existence for a minimum period of five years.
ii) Annual Turnover at least Rs. 25 lakhs.
For the purpose of ascertaining parameter of
Turnover of the bidder average turnover for
the previous three financial years shall
be considered.
2. Year of establishment of the Firm
3. Partners (details) as per The Institute of Chartered
Accountants of India / The Institute of Cost
Accountants of India, certificates as on 01.08.2019.
4. Branch Office 1,2,3.......at our respective
Branches (Particulars of each branch to be
given)
5. Names of the Chartered Accountants/Cost
Accountants employed with the firm.
6. Number of semi-qualified employees attached
with the Firm (CA-Intermediate and/or
Cost Intermediate)
7. Exposure of the Firm in processing industry
preferably under Central/State Government
as Statutory/Internal Auditors (Name of
the PSU, Year of audit and nature of audit
Undertaken)
8. Exposure of the Firm in industries other than
processing under Central/State Government
as Statutory/Internal Auditors(Name of the
PSU, Year of audit and nature of audit
undertaken).
9. GST registration certificate
10. RTGS/NEFT mandate duly endorsed by your
Banker
SIGNATURE
NAME (in block letter)
DESIGNATION
RUBBER STAMP OF THE FIRM
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Sl. PARTICULARS Details
No. (Supporting Documents
Where applicable are
required to be submitted
along with this form)
11. The applicant Firm of Chartered Accountants/
Cost Accountants must have carried out in addition to
Routine Audit, Internal/special Audits in the
following areas:
i) Direct Taxes
ii) State related Taxes /VAT Audit.
iii) Central Excise/Service Tax,GST
iv) Physical verification of Fixed Assets &
inventory of Stores & Spares.
The above are only illustrative and not
Comprehensive.
12. Resume of the Firm
13. Registration Certificate issued by The Institute of
Chartered Accountants of India/The Institute of
Cost Accountants of India
The above techno-commercial bid also includes:
1. Proposed Overall Incharge for the assignment Partner:
2. Proposed Completion Time (from the date of receipt of engagement letter): This
should be in line with the time limit prescribed in the tender document.
3. Proposed Team for the assignment (keeping in view the scope of work, coverage etc.):
Level Educational Key Responsibilities Number of Man-days
Qualification Or Task Assigned
In-Charge FCA/ACA Finalisation
FCMA/ACMA
Team Leader FCA/ACA Pre-Finalisation,
FCMA/ACMA Checking
Team Member Semi Qualified Collation, Compilation,
Consolidation
Team Member Support Staff/ Routine Checking
Articled Clerk
4. Description of Approach & Work Plan
a. Technical Approach.
i) Note on Firm's Understanding of the assignment
ii) Books of Accounts/Registers/Records to be checked.
iii) Statements and Reports to be prepared
b. Work Plan.
5. Letter of Reference.
SIGNATURE
NAME (in block letter)
DESIGNATION
RUBBER STAMP OF THE FIRM
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ANNEXURE III
SCOPE OF WORK FOR INTERNAL AUDITORS
The Internal Audit will be carried out on the following offices/units of the Company as per agreed
audit plan:
FREQUENCY
OFFICES/UNITS NOS. SUBMISSION OF REPORTS
OF AUDIT
CORPORATE OFFICE 1 QUARTERLY WITHIN THE NEXT MONTH OF EACH QUARTER
UNITS 12 QUARTERLY WITHIN THE NEXT MONTH OF EACH QUARTER
The illustrative (but not exhaustive) list of tasks to be performed for Internal Audit by Practicing
Chartered Accountants (CA)/Cost Accountant (CMA) Firm Partnership/Proprietorship/Individual
is given as under:-
A. Following would be the scope covered for Corporate Office.
FUNCTION AREAS SUB-PROCESS
FIXED ASSETS CAPITAL EXPENDITURE PLAN APPROVAL OF COMPETENT AUTHORITY
PROCURMENT PROCEDURE
CAPITAL WORK IN PROGRESS / PROJECT AND SCHEDULE
OF COMPLETION
INSTALLATION AND COMMISSIONING
MAINTENANCE AND UP-KEEP
MAINTAINING AND UPDATING OF FIXED ASSETS REGISTER
PROPER CAPITALISATION OF FIXED ASSETS
CALCULATION AND ACCOUNTING OF DEPRECIATION
SALE / DISPOSAL / TRANSFER / WRITE-OFF OF ASSETS
INSURANCE OF FIXED ASSETS
PHYSICAL VERIFICATION PROCESS OF FIXED ASSETS
IDLE AND LONG BREAK DOWN OF FIXED ASSETS
FINANCIAL ACCOUNTS GOODS & SERVICE TAX & ENSURING THE COMPLIANCE OF GST ACT & INDIAN
INDIAN ACCOUNTING ACCOUNTING STANDARDS IN ACCOUNTING AND
STANDARDS PREPARATION OF FINANCIAL ACCOUNTS.
PRODUCTION PLAN UNIT WISE PRODUCTION PRODUCTION PLAN COMPARED WITH ACTUAL
TARGET ACHIEVEMENT
AWARDING OF TENDERING PROCESS FOR SELECTION AND VENDOR REGISTRATION
CONTRACT TO OUTSIDE ENGAGING OUT SIDE AGENCY, ENQUIRY, RECEIVING OF TECHNICAL AND FINANCIAL
AGENCIES PURCHASING POLICY FOR
BIDS, PREPARATION OF CS AND NEGOTIATION.
SPARE PARTS AND OTHER
ITEMS, INTERNAL CONTROL ISSUING ORDERS AND FOLLOW-UP OF DELIVERY AND
PROCEDURE ON PURCHASES COMPLIANCE OF TERMS
ADVANCES TO ADVANCES AGAINST PURCHASE PROCEDURE FOLLOWED BEFORE RECEIVING
SUPPLIERS AND PROFORMA INVOICE PROFORMA INVOICE
CONTRACTORS RECEIPT OF ORIGINAL INVOICE ALONG WITH SUPPLIES.
PROMPT ADJUSTMENT OF ADVANCES
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CASH MANAGEMENT CASH AND BANK BALANCE AND CASH PAYMENT AND RECEIPTS
OVERDRAFT FACILITY FROM CUSTODY OF PHYSICAL CASH, CHEQUE BOOKS AND
BANKS. SIGNING AUTHORITY.
PHYSICAL VERIFICATION PROCESS OF CASH
ADJUSTMENT OF IMPREST TO EMPLOYEES FOR
EXPENSES
INSURANCE OF CASH IN SAFE CUSTODY AND IN TRANSIT
BANK PAYMENT AND RECEIPTS
BANK BALANCE RECONCILIATION
FUND TRANSFER TO / FROM UNITS
INTEREST EARNING ON SHORT TERM BANK DEPOSITS,
TDS THEREON AND ACCOUNTING
OVERDRAFT FROM BANKS, UTILISATION, REPAYMENT
AND INTEREST COST
HR & PAYROLL MANPOWER PLANNING, UPDATION AND MAINTENANCE OF EMPLOYEES'
RECRUITMENT PLAN & PERSONAL FILES AND MASTERS
PROCEDURE, FIXATION OF PAY PERFORMANCE APPRAISAL PROCESS
AND TRAINING, SEPARATION ATTENDANCE OF THE EMPLOYEES
AND TRANSFER POLICY
LEAVE RECORDS OF THE EMPLOYEES
PREPARATION OF PAY ROLL
OTHER EMPLOYEES BENEFITS
DEDUCTION OF PF AND PENSION FUND
DEDUCTION OF INCOME TAX AT SOURCE
GRANTING OF VARIOUS LOANS AND ADVANCES AS PER
RULE
DEDUCTION OF LOANS AND ADVANCES GRANTED.
OTHER DEDUCTIONS.
PROCESS OF FIXATION AND CALCULATION OF REVISION
OF PAY SCALE, IF ANY
PERFORMANCE RELATED PAYMENTS (PRP)
CALCULATIONS
EFB SCHEME AND IMPLEMENTATION
SUNDRY CREDITORS SUNDRY CREDITORS AGAINST RECEIPT OF INVOICES ALONG WITH MATERIALS /
SUPPLIES & SERVICES SERVICES
PROMPT PROCESSING OF INVOICES OF VENDORS
PAYMENT AS PER STIPULATION AND WHERE APPLICABLE
AS PER MICRO, SMALL AND MEDIUM ENTERPRISES
DEVELOPMENT ACT, 2012
PERIODICAL RECONCILIATION OF ACCOUNTS WITH
VENDORS
SECURITY DEPOSIT DEDUCTION, RELEASE AND SD DEDUCTED AS PER TERMS
AND EMD FROM LONG OUTSTANDING
VENDORS RELEASE OF SD ON COMPLETION AS PER TERMS
LONG OUTSTANDING SD & EMD FROM VENDORS
PROVISIONS PROVISION FOR TAX, LEAVE PROVISIONING AND QUANTIFICATION OF LIABILITIES.
SALARY,DIVIDEND,EFB
SCHEME AND OTHER
RETIREMENT BENEFITS
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ADMINISTRATION ADMINISTRATIVE EXPENSES ADVERTISEMENT EXPENSES
PROFESSIONAL AND LEGAL FEES
EXPENSES FOR NON-STAFF
TRAINING EXPENSES
REPAIR AND MAINTENANCE EXPENDITURE
TOUR AND TRAVEL EXPENDITURE
COST INCURRED ON TRANSFER / RELOCATION OF
EMPLOYEES
SECURITY SERVICE EXPENDITURE
PRINTING STATIONERY AND COMPUTERS CONSUMABLE
EXPENSES
COMMUNICATION EXPENSES (TELEPHONE, POSTAGE AND
COURIER EXPENSES)
RATES, TAXES AND LICENCES
CORPORATE SOCIAL RESPONSIBILITY
MISCELLANIOUS EXPENSES
REGULATORY LEGAL DEPARTMENT REVIEW OF STATUS OF LEGAL PENDING CASES
EMPANELMENT OF LAWYERS AND THEIR PAYMENTS
EDP DEPARTMENT REVIEW OF IT GENERAL CONTROLS AROUND DATA
ACCESS
DATA AND PHYSICAL SECURITY, BACK UP,
HELPDESK
HINDI DEPARTMENT COMPLIANCE TO REGULATORY REQUIREMENTS OF
ANNUAL PROGRAMME FOR TRANSACTING THE OFFICIAL
WORK OF THE UNION IN HINDI ISSUED BY DEPARTMENT
OF OFFICIAL LANGUAGE
STAUTORY COMPLIANCES DETERMINATION AND DEPOSIT OF ADVANCE INCOME TAX
AND FILING OF INCOME TAX RETURN
DEDUCTION AND DEPOSIT OF INCOME TAX AT SOURCE
AND TCS
FILING OF E-TDS / TCS RETURN
INPUT CREDIT AVAILED AND UTILISATION
FILING OF GST RETURNS
DEPOSIT OF PROFESSIONAL TAX
DEPOSIT OF ROAD TAX FOR VEHICLES
LICENSE SOFTWARE IN USE IN EDP DEPARTMENT
CORPORATE SOCIAL REVIEW OF CSR ACTIVITES AS PER CSR COMMITTEE
RESPONSIBILITY
DISPOSAL OF SCRAP DISPOSAL OF SCRAP AND DISPOSAL OF EMPTY CONTAINER, TYRES AND OTHER
OTHER USED MATERIALS SCRAP MATERIALS
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WORKS ACCOUNTING WORK ORDER/PURCHASE SCRUTINIZE/VERIFY THE PAYMENT TO CONTRACTORS
ORDER ACCOUNTING WITH REFERENCE TO CONTRACT & ADJUSTMENTS AND
COMMENTS ON TIMELY RECOVERY OF THE RELATED
ADVANCES AND ALL OTHER STATUTORY DEDUCTIONS.
CHECK AND COMMENT ON ADJUSTMENT FOR RETURNS,
SHORTAGES, DAMAGES, UNSERVICEABLE
STORES/MATERIAL AT SITES.
ALL STATUTORY COMPLIANCE BY THE CONTRACTOR TO
BE CHECKED AND CORRECTIVE MEASURES, IF ANY, TO
BE RECOMMENDED
EXAMINE THE PROPOSALS WITH SPECIFIC REFERENCE
TO FINANCIAL CONCURRENCE, RELEASE OF PAYMENTS,
UPDATING OF ACCOUNTING RECORDS, AUTHORIZATION
AS PER DOP.
INTER UNIT ACTIVITIES INTER UNIT TRANSACTIONS RECONCILIATION OF INTER UNIT TRANSACTIONS
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B. Following would be the scope covered for the Units of FSNL.
FUNCTION AREAS SUB-PROCESS
LONG TERM VALIDITY, SCOPE OF WORK AND VALIDITY OF LTA
AGREEMENT (LTA) PRICE ESCALATION SCOPE OF WORK
WITH STEEL PLANTS
CALCULATION OF PRICE ESCALATION AND BILLING
PURCHASES PURCHASING POLICY FOR SPARE APPROVED VENDORS LIST AND VENDOR
PARTS AND OTHER ITEMS, REGISTRATION PROCESS
INTERNAL CONTROL PROCEDURE ENQUIRY, RECEIVING OF QUOTATIONS, PREPARATION
ON PURCHASES OF CS AND NEGOTIATION.
ISSUING ORDERS AND FOLLOW-UP OF DELIVERY AND
COMPLIANCE OF TERMS
REPAIRING VIS-À-VIS RECON EXCHANGE OF ENGINES
AND TRANSMISSION.
EQUIPMENT SENT OUTSIDE FOR REPAIRING AND
RECEIVING BACK AT UNIT.
PRODUCTION STEEL PLANT'S REQUIREMENT AND COMPARISON OF PLAN AND ACTUAL PRODUCTION
PRODUCTION PLAN COMPARISON OF CURRENT PRODUCTION WITH SAME
PERIOD OF PREVIOUS YEAR'S PRODUCTION.
REASONS OF INCREASE AND DECREASE IN
PRODUCTION.
FINANCIAL GOODS & SERVICE TAX & INDIAN ENSURING THE COMPLIANCE GST LAW & INDIAN
ACCOUNTS ACCOUNTING STANDARDS ACCOUNTING STANDARDS IN ACCOUNTING AND
PREPARATION OF FINANCIAL ACCOUNTS.
HIRING OF MODULE SERVICE FROM OUTSIDE AGENCY NEED AND TERMS OF ENGAGEMENT
OF EQUIPMENT AND HIRING OF MODULE OF PRODUCTION RECORDS
EQUIPMENT
BILLING BY THE AGENCY
PURPOSE OF HIRING AND NEED
TERMS OF HIRING OF MODULE OF EQUIPMENT
COMPLIANCE OF PURPOSE
LOG BOOK OF EQUIPMENT
CONSUMPTION DIESEL AND LUBRICANTS, TYRE PRODUCTION VIS-À-VIS CONSUMPTION COMPARISON
AND TUBES, POWER AND FUEL AND EQUIPMENT OH PLAN
SPARE PARTS FOR CRANES,
DUMPER, DOZER, SEPARATORS EQUIPMENT RUNNING LOG BOOK
AND IC ENGINES
HR & PAYROLL ATTENDANCE AND LEAVE , PAY ATTENDANCE OF THE EMPLOYEES
ROLL, PERFORMANCE INCENTIVE, LEAVE RECORDS OF THE EMPLOYEES
DEDUCTIONS
PREPARATION OF PAY ROLL
PERFORMANCE INCENTIVE
OTHER EMPLYEES BENEFITS
DEDUCTION OF PF AND PENSION FUND
DEDUCTION OF INCOME TAX AT SOURCE
GRANTING OF VARIOUS LOANS AND ADVANCES AS PER
RULE
DEDUCTION OF LOANS AND ADVANCES GRANTED.
PROCESS OF FIXATION AND CALCULATION OF
REVISION OF PAY SCALE, IF ANY
OTHER DEDUCTIONS.
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SUNDRY DEBTORS BILLING, REALISATION, BAD DEBTS TIMELY BILLING AND COMPLIANCE OF SERVICE TAX
LAW
REALISATION AS PER TERMS OF AGREEMENT
LONG OUTSTANDING DUES AND FOLLOW-UP
THEREOFF
SECURITY DEPOSIT DEDUCTION, REALISATION AND DEDUCTION OF SD AS PER TERMS OF LTA
WITH STEEL PLANT LONG OUTSTANDING RELEASE OF SD BY STEEL PLANT AS PER TERMS
AND EARNEST
FOLLOW-UP OF LONG OUTSTANDING SD AND EMD
MONEY DEPOSIT
ADVANCES TO ADVANCES AGAINST PI PURCHASE PROCEDURE FOLLOWED BEFORE PI
SUPPLIERS AND ORIGINAL INVOICE INVARIABLY ACCOMPANY THE
CONTRACTORS SUPPLIES.
PROMPT ADJUSTMENT OF ADVANCES
CASH MANAGEMENT CASH AND BANK BALANCE CASH PAYMENT AND RECEIPTS
CUSTODY OF PHYSICAL CASH AND CHEQUE BOOKS
AND SIGNING AUTHORITY.
PHYSICAL VERIFICATION PROCESS OF CASH
ADJUSTMENT OF IMPREST TO EMPLOYEES FOR
EXPENSES
INSURANCE OF CASH IN SAFE CUSTODY AND IN
TRANSIT
BANK PAYMENT AND RECEIPTS
BANK BALANCE RECONCILIATION
FUND TRANSFER TO / FROM CORPORATE OFFICE
INVENTORIES HOLDING, REQUIREMENT, HOLDING OF INVENTORY VS CONSUMPTION
RECONCILIATION, MAINTENANCE, CURRENT PURCHASE AND ISSUE FROM STORE
MOVING AND NON MOVING,
PHYSICAL VERIFICATION PROCESS, RECONCILIATION OF INVENTORY AS PER INVENTORY
INSURANCE AGAINST FIRE ETC. RECORDS WITH BOOKS OF ACCOUNT
MAINTENANCE OF RECORDS AND CLEANLINESS OF
INVENTORY STORAGE
INSURANCE OF INVENTORY AGAINST FIRE AND THEFT
IDENTIFICATION OF MOVING AND NON-MOVING
INVENTORY
PHYSICAL VERIFICATION PROCESS AND ACCOUNTING
OF SHORTAGE / EXCESS
SUNDRY CREDITORS SUNDRY CREDITORS AGAINST RECEIPT OF INVOICES ALONG WITH MATERIALS /
SUPPLIES & SERVICES AND GRN SERVICES
LIABILITIES PROMPT PROCESSING OF INVOICES OF VENDORS
PAYMENT AS PER STIPULATION AND WHERE
APPLICABLE AS PER MICRO, SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT ACT, 2012
PROMPT ADJUSTMENT OF ALL GRN LIABILITY ON
RECEIPT OF INVOICES
PERIODICAL RECONCILIATION OF ACCOUNTS WITH
VENDORS
SECURITY DEPOSIT DEDUCTION, RELEASE AND LONG SD DEDUCTED AS PER TERMS
AND EMD FROM OUTSTANDING RELEASE OF SD ON COMPLETION AS PER TERMS
VENDORS
LONG OUTSTANDING SD & EMD FROM VENDORS
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ADMINISTRATION ADMINISTRATIVE EXPENSES REPAIR AND MAINTENANCE EXPENDITURE
TOUR AND TRAVEL EXPENDITURE
COST INCURRED ON TRANSFER / RELOCATION OF
EMPLOYEES
SECURITY SERVICE EXPENDITURE
PRINTING AND STATIONERY EXPENSES
COMMUNICATION EXPENSES (TELEPHONE, POSTAGE
AND COURIER EXPENSES)
RATES, TAXES AND LICENCES
CORPORATE SOCIAL RESPONSIBILITY
MISCELLANIOUS EXPENSES
REGULATORY EDP DEPARTMENT BACK-UP OF DATA AND PHYSICAL SECURITY
HINDI DEPARTMENT STAUTORY COMPLIANCE TO REGULATORY REQUIREMENTS OF
COMPLIANCES ANNUAL PROGRAMME FOR TRANSACTING THE
OFFICIAL WORK OF THE UNION IN HINDI ISSUED BY
DEPARTMENT OF OFFICIAL LANGUAGE
STATUTORY COMPLIANCES DEDUCTION AND DEPOSIT OF INCOME TAX AT SOURCE
AND TCS
FILING OF E-TDS / TCS RETURN
RAISING OF INVOICE AS PER COMPANIES ACT 2013 &
GST RULES.
INPUT CREDIT AVAILED AND UTILISATION
FILING OF GST RETURN
DEDUCTION AND DEPOSIT OF PROFESSION TAX IF ANY
FILING OF RETURN OF PROFESSION TAX
DEPOSIT OF GST AS PER GST LAW
DEPOSIT OF ROAD TAX FOR VEHICLES
EXPLOSIVE LICENCE FOR STORING DIESEL ETC.
CORPORATE SOCIAL REVIEW OF CSR ACTIVITES AS PER CSR COMMITTEE
RESPONSIBILITY
WORKS WORK ORDER/PURCHASE ORDER SCRUTINIZE/VERIFY THE PAYMENT TO CONTRACTORS
ACCOUNTING ACCOUNTING WITH REFERENCE TO CONTRACT & ADJUSTMENTS AND
COMMENTS ON TIMELY RECOVERY OF THE RELATED
ADVANCES AND ALL OTHER STATUTORY DEDUCTIONS.
CHECK AND COMMENT ON ADJUSTMENT FOR
RETURNS, SHORTAGES, DAMAGES, UNSERVICEABLE
STORES/MATERIAL AT SITES.
CHECK AND MAKE SPECIFIC COMMENTS ON DELAY
AND LEVIABILITY OF FINES FOR DELAY/SHORT
DEPOSITS ETC.
ALL STATUTORY COMPLIANCE BY THE CONTRACTOR
TO BE CHECKED AND CORRECTIVE MEASURES, IF ANY,
TO BE RECOMMENDED
EXAMINE THE PROPOSALS WITH SPECIFIC REFERENCE
TO FINANCIAL CONCURRENCE, RELEASE OF
PAYMENTS, UPDATING OF ACCOUNTING RECORDS,
AUTHORIZATION AS PER DOP.
INTER UNIT INTER UNIT TRANSACTIONS RECONCILIATION OF INTER UNIT TRANSACTION
ACTIVITIES
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ANNEXURE-IV
PRICE BID
(On letter head of Firm)
PROFORMA FOR PRICE BID (For conducting Internal Audit of FSNL for the
Financial Year 2020-21, 2021-22 & 2022-23).
Sl.No. Particulars Audit Fees Out of Pocket Total (
( Expenses (
1. Audit Work for the period 2020-21,
2021-22 & 2022-23
a. Cluster I Burnpur, Durgapur,
Bokaro & Rourkela Units.
b. Cluster II Visakhapatnam,
Hyderabad &
Duburi Units.
c. Cluster III Corporate Office, Bhilai,
Salem & Air-India- Mumbai,
Hazira, Haridwar
2. GST as applicable (in %)
3. TOTAL AMOUNT
Note:-
(i) If any new unit comes into Operation or any exisiting unit is closed during the Audit period,
then the rate of that unit will be added or deleted proportionately.
(ii) L1 status will be determined on cluster basis.
Signature______________________
Name & Designation of the Authorized Signatory
With membership No.____________________
Seal of the Firm______________________________
Date ___________________ Place __________________
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ANNEXURE - V
List of Offices of FSNL with address (Cluster wise).
Sl.No. Name of Unit Address
1. Burnpur Unit Ferro Scrap Nigam Limited,
(Inside SAIL ISP),
Post Bag No.20),
Burnpur-713 325(West Bengal)
2. Bokaro Unit Ferro Scrap Nigam Limited,
(Inside Bokaro Steel Plant),
Bokaro Steel City,
Bokaro (Jharkhand)
3. Durgapur Unit Ferro Scrap Nigam Limited,
Inside Durgapur Steel Plant,
Post Bag No.08, Dist.Burdwan,
Durgapur-713 203(West Bengal)
4. Rourkela Unit Ferro Scrap Nigam Limited,
Post Box No.19,(Inside RSP),
Rourkela-769 011(Odisha)
5. Visakhapatnam Unit Ferro Scrap Nigam Limited,
C/o.Jaikamal Travel,
Ukkunagaram,
Sector-5, Shopping Complex,
Visakhpatnam-530 031.
6. Duburi Unit Ferro Scrap Nigam Limited,
Post Box No.39,
Inside NINL Duburi Project,
Jajpur Road, Dist.Jajpur
Odisha-755 019.
7. Haridwar Unit Ferro Scrap Nigam Limited,
SMS Office Building (1st Floor),
CFFP, BHEL Ranipur,
Haridwar-249 403,Uttarakhand.
8. Corporate Office Ferro Scrap Nigam Limited,
FSNL Bhawan, Equipment Chowk,
Central Avenue, Post Box No.37,
Bhilai-490 001 (CG)
9. Bhilai Unit Ferro Scrap Nigam Limited,
Inside Bhilai Steel Plant,
Post Box No.54, Bhilai-490 001
10 Air- India Mumbai Unit Ferro Scrap Nigam Limited,
Inside Air India Scrap Yard,
Old Airport premises,
Kalina, Santacruz,East Mumbai,
Maharashtra-400 029.
11. Salem Unit Ferro Scrap Nigam Limited,
Inside Salem Steel Plant,
Near Caster House SMS-SSP,
Tamilnadu-636 030
12. Hazira Unit Ferro Scrap Nigam Limited
Inside Essar Steel India Ltd.,
27th KM Surat, Hazira Road, Hazira,
Surat, Gujarat-394270
13. Hyderabad Unit Ferro Scrap Nigam Limited
Inside Mishra Dhatu Nigam Limited
A Government of India Enterprise
PO: Kanchanbagh,
Hyderabad-500058,
:: 19::
ANNEXURE - VI
INTEGRITY PACT
Between
FERRO SCRAP NIGAM LTD, hereinafter, referred to as "FSNL",
and
............................................. hereinafter referred to as "The Bidder/Contractor"
Preamble
FSNL intends to award, under laid down organisational procedures, contracts
for................................................................................................................................FSNL
values full compliance with all relevant laws of the land, rules, regulations, economic use of
resources and of fairness and transparency in its relations with its Bidder(s) and/or Contractor(s).
In order to achieve these goals, FSNL will appoint an External Independent Monitor (EIM) who will
monitor the tender process and the execution of the contract for compliance with the principles
mentioned above.
Section 1 Commitments of FSNL
(1) FSNL commits itself to take all measures necessary to prevent corruption and to observe the
following principles :-
a) No employee of FSNL, personally or through family members, will in connection with the tender
for, or the execution of a contract demand, take a promise for or accept, for self or third person,
any material or immaterial benefit which the person is not legally entitled to.
b) FSNL will, during the tender process treat all Bidder(s) with equity and reason. FSNL will in
particular, before and during the tender process., provide to all Bidder(s) the same information and
will not provide to any Bidder(s) confidential/additional information through which the Bidder(s)
could obtain an advantage in relation to the tender process or the contract execution.
c) FSNL will exclude from the process all known prejudiced persons.
(2) If FSNL obtains information on the conduct of any of its employees which is a criminal offence
under the IPC/PC Act, or if there be a substantive suspicion in this regard, FSNL will inform its
Vigilance Office and in addition can initiate disciplinary actions.
Section 2 Commitments of the Bidder(s)/Contractor(s)
(1) The Bidder(s)/Contractor(s) commit themselves to take all measures necessary to prevent
corruption. He commits himself to observe the following principles during his participation in the
tender process and during the contract execution.
i) The Bidder(s)/Contractor(s) will not, directly or through any other person or firm, offer, promise
or give to any of FSNL's employees involved in the tender process or the execution of the contract
or to any third person any material or immaterial benefit which he/she is not legally entitled to, in
order to obtain in exchange any advantage of any kind whatsoever during the tender process or
during the execution of the contract.
ii) The Bidder(s)/Contractor(s) will not enter with other Bidder(s) into any undisclosed agreement or
understanding, whether formal or informal. This applies in particular to prices, specifications,
certifications, subsidiary contracts, submission or non-submission of bids or any other actions to
restrict competitiveness or to introduce cauterisation in the bidding process.
iii) The Bidder(s)/Contractor(s) will not commit any offence under the relevant IPC/PC Act; further
the Bidder(s)/Contractor(s) will not use improperly, for purposes of competition or personal gain, or
pass on to others, any information or documents provided by FSNL as part of the business
relationship, regarding plans technical proposals and business details, including information
contained or transmitted electronically.
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iv) The Bidder(s)/Contractor(s) will, when presenting his bid, disclose any and all payments he has
made, is committed to or intends to make to agents, brokers or any other intermediaries in
connection with the award of the contract.
v) The Bidder(s)/Contractor(s) will not instigate third persons to commit offences outlined above or
be an accessory to such offences.
Section 3 Disqualification from tender process and exclusion from future contracts
If the Bidder(s)/Contractor(s), before contract award or during execution, has committed a
transgression through a violation of Section 2 above or in any other form such as to put his
reliability or credibility in question, FSNL is entitled to disqualify the Bidder(s)/Contractor(s) from
the tender process or to terminate the contract, if already signed, for such reason.
i) If the Bidder(s)/Contractor(s) has committed a transgression through a violation of Section 2
above such as to put his reliability or credibility in question, FSNL is entitled also to exclude the
Bidder(s)/Contractor(s) from future tender processes. The imposition and duration of the exclusion
will be determined by the severity of the transgression. The severity will be determined by the
circumstances of the case, in particular the number of transgressions, the position of the
transgressors within the company hierarchy of the Bidder(s)/Contractor(s) and the amount of the
damage. The exclusion will be imposed for a minimum of 6 months and maximum of 3 years.
ii) If the Bidder(s)/Contractor(s) can prove that he has restored/recouped the damage caused by
him and has installed a suitable corruption prevention system, FSNL may revoke the exclusion
prematurely.
iii) A transgression is considered to have occurred if in light of available evidence no reasonable
doubt is possible.
Section 4 Compensation for Damages
1. If FSNL has disqualified the Bidder(s) from the tender process prior to the award according to
Section 3 above, FSNL is entitled to demand from the Bidder(s) liquidated damages equivalent to
3% of the value of the offer or the amount equivalent to Earnest Money Deposit/Bid Security,
whichever is higher.
2. If FSNL has terminated the contract according to Section 3, or if FSNL is entitled to terminate the
contract according to Section 3, FSNL shall be entitled to demand and recover from the Bidder(s)
liquidated damages equivalent to 5% of the contract value or the amount equivalent to Security
Deposit/Performance Bank Guarantee, whichever is higher.
3. If the Bidder(s)/Contractor(s) can prove that their exclusion from the tender process or the
termination of the contract after the contract award has caused no damage or less damage than
the amount of the liquidated damages, the Bidder(s)/Contractor(s) has to compensate only the
damage in the amount proved. If FSNL can prove that the amount of the damage caused by the
disqualification of the Bidder(s)/Contractor(s) before contract award or the termination of the
contract after contract award is higher than the amount of the liquidated damages, it is entitled to
claim compensation for the higher amount of damages.
Section 5 Previous Transgression
1. The Bidder declares that no previous transgressions occurred in the last 3 years with any other
company in any country conforming to the anti corruption approach or with any other Public Sector
Enterprise in India that could justify his exclusion from the tender process.
2. If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender
process or the contract, if already awarded, can be terminated for such reason.
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Section 6 Equal treatment of all Bidders/Contractors/Sub-contractors
1. The Bidder(s)/Contractor(s) undertake(s) to demand from all sub-contractor(s) a commitment in
conformity with this Integrity Pact, and to submit it to FSNL before contract signing.
2. FSNL will enter into agreements with identical conditions as this one with all Bidders, Contractors
and subcontractors.
3. FSNL will disqualify from the tender process all Bidder(s) who do not sign this Pact or violate its
provisions.
Section 7 Criminal Charges against violating Bidder(s)/Contractor(s)/ sub-
contractors
If FSNL obtains knowledge of conduct of a Bidder, Contractor or Subcontractor or of an employee
or a representative or an associate of a Bidder, Contractor or Sub-contractor which constitutes
corruption, or if FSNL has substantive suspicion in this regard, FSNL will inform the same to the
Vigilance Office.
Section 8 External Independent Monitor
1. FSNL appoints competent and credible External Independent Monitor for this Pact. The task
of the Monitor is to review independently and objectively, whether and to what extent the parties
comply with the obligations under this agreement.
2. The Monitor is not subject to instructions by the representatives of the parties and performs his
functions neutrally and independently. He reports to the Managing Director of FSNL.
3. The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access without restriction
to all Project documentation of FSNL including that provided by the contractor. The Contractor will
also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and
unconditional access to his project documentation. The same is applicable to Subcontractors. The
Monitor is under contractual obligation to treat the information and documents of the
Bidder(s)/Contractor(s)/Subcontractor(s) with confidentiality.
4. FSNL will provide to the Monitor sufficient information about all meetings among the parties
related to the project provided such meetings could have an impact on the contractual relations
between FSNL and the Contractor. The parties offer to the Monitor the option to participate in such
meetings.
5. As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so
inform the Management of FSNL and request the Management to discontinue or heal the violation,
or to take other relevant action. The Monitor can in this regard submit non-binding
recommendations. Beyond this, the Monitor has no right to demand from the parties that they act
in a specific manner, refrain from action or tolerate action.
6. The Monitor will submit a written report to the Managing Director of FSNL within 8 to 10 weeks
from the date of reference or intimation to him by FSNL and should the occasion arise, submit
proposals for correcting problematic situations.
7. The Monitor will have status/benefits similar to those of Chief General Managers of FSNL and will
be entitled to compensation @ Rs.4500/- for attending review meeting to be called by M.D., FSNL
every quarter.
8. If the Monitor has reported to the M.D., FSNL a substantiated suspicion of an offence under
relevant IPC/PC Act, and the M.D. has not within reasonable time, taken visible action to proceed
against such offence or reported it to the Vigilance Office, the Monitor may also transmit this
information directly to the Central Vigilance Commissioner, Government of India.
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9. The word "Monitor" would include both singular and plural.
Section 9 Pact Duration
This Pact begins when both parties have legally signed it. It expires for the Contractor 12 months
after the last payment under the respective contract, and for all other Bidders 6 months after the
contract has been awarded.
If any claim is made/lodged during this time, the same shall be binding and continue to be valid
despite the lapse of this pact as specified above, unless it is discharged/determined by M.D., FSNL.
Section 10 Other Provisions
1.This agreement is subject to Indian Law. Place of performance and jurisdiction is the Corporate
Office of FSNL, i.e. Bhilai
2.Changes and supplements as well as termination notices need to be made in writing. Side
agreements have not been made.
3.If the Vendor is a partnership or a consortium, this agreement must be signed by all partners or
consortium members.
4.Should one or several provisions of this agreement turn out to be invalid, the remainder of this
agreement remains valid. In this case, the parties will strive to come to an agreement to their
original intentions.
For FSNL ............................. For Bidder/Contractor...........................
Place :................................................... Place :......................................................
Date : ...................................... Date :............................................
Witness 1 :............................................ Witness 2 :............................................
**********
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ANNEXURE VII
Please indicate the % of GST applicable and provide copy of GST Registration
Certificate. Tenderers are requested to provide following information for GST
Compliance :-
Name of Place of Business GST Regn. Whether HSN Code
Vendor Name Authorised No. (GSTIN) under No.
Person under Composition
GST with Scheme
Mobile No. &
Principal Additional
Email ID.
Place of Place of Yes No
Business Business
Date: Signature :
Name (in block letters):
Designation :
Rubber Stamp of Co. :
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ANNEXURE-VIII
Following undertaking is to be provided by Contractor/ vendors at the time of submission of quotation:
1.(a) We agree to do all things not limited to providing GST invoices or other documentation as per GST law relating to the above
supply, payment of taxes, timely filling of valid statutory returns for tax period on the Goods and Service tax portal etc. that
may be necessary to match the invoice on GST common portal and enable FSNL to claim input tax credit in relation to any
GST payable under this Agreement or in respect of any supply/ service under this agreement.
(b) In case the Input Tax Credit of GST is denied or demand is recovered from FSNL on account of any non- compliance by the
vendor/supplier/contractor, including non-payment of GST charged and recovered, the contractor shall indemnify FSNL in
respect of all claims of tax, penalty and/or interest, loss, damages, costs, expenses and liability that may arise due to such non-
compliance.
(c) Contractor/Vendor shall maintain high GST compliance rating track record at any given point of time.
(d) The Contractor/ Vendor shall avail the most beneficial notification, abatements, exemptions etc., if any, as applicable for the
supplies/services under the Goods and Service Tax.
2. Any invoice issued in favour of FSNL shall contain the following particulars:-
a. Name, address and GSTIN of the supplier;
b. Serial number of the invoice;
c. Date of issue;
d. Name, address and GSTIN of the recipient (FSNL Unit/C.O)
e. Name and address of the recipient and the address of the delivery, along with the State and its code,"
f. HSN code of goods or Accounting Code of services;
g. Description of goods or services;
h. Quantity in case of goods and unit or Unique Quantity Code thereof;
i. Total value of supply of goods or services or both;
j. Taxable value of supply of goods or services or both taking into discount or abatement if any;"
k. Rate of tax (Central Tax, State Tax, Integrated Tax (for inter-state supply), Union Territory Tax or cess);"
l. Amount of tax charged in respect of taxable goods or services (Central Tax, State Tax, Integrated Tax (for inter-state
supply), Union Territory Tax or cess);"
m. Place of supply along with the name of State, in case of supply in the course of inter-state trade or commerce;"
n. Address of the billing where the same is different from the place of supply.
o. Signature or digital signature of the supplier or his authorised representative on Invoice.
3. GST invoice shall be prepared in triplicate, in case of supply of goods, in the following manner : -
a. The original copy being marked as ORIGINAL FOR RECIPIENT;
b. The duplicate copy being marked as DUPLICATE FOR TRANSPORTER and
c. The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
4. GST invoice shall be prepared in duplicate, in case of supply of services, in the following manner : -
a. The original copy being marked as ORIGINAL FOR RECIPIENT; and
b. The duplicate copy being marked as DUPLICATE FOR SUPPLIER.
5. In case of any advance given against any supplies contract, the supplier of the goods shall issue Receipt Voucher containing the
details as prescribed in the GST Acts 2017 read with GST Rules, 2017.
6. For the purpose of the above mentioned requirements, the contractor/vendor shall provide necessary documents as may be
necessary and shall allow inspection of the same to concerned authorities.
Date: SIGNATURE :
NAME (in block letters) :
DESIGNATION :
RUBBER STAMP OF CO. :
::25::
ANNEXURE-IX
PREFERENCE TO "MAKE IN INDIA"
1. Purchase preference shall be given to local suppliers in all procurement in the manner specified hereunder : -
(a) In procurement of goods where the estimated value of procurement is Rs. 50.00 lakhs or less, only the local suppliers shall
be eligible. If the procurement of such goods is more than Rs. 50.00 lakhs, the provision as stipulated under shall be
applicable as the case may be.
(b) In procurement of goods which are divisible in number, following procedure shall be adopted: -
(i) If the L1 bidder is from the local supplier, the contract for full quantity will be awarded to L1 bidder.
(ii) If L1 bidder is not from the local supplier, 50% of the order quantity shall be awarded to L1. Thereafter, the lowest
bidder among the local supplier will be invited to match the L1 price for the remaining 50% quantity subject to the local
supplier's quoted price falling within the margin of purchase preference of 20% & contract for that quantity shall be
awarded to such local supplier subject to matching the L1 price. In case such lowest eligible local supplier fails to
match the L1 price or accepts less than the offered quantity, the next higher local supplier within the margin of
purchase preference shall be invited to match the L1 price for remaining quantity and so on, and contract shall be
awarded accordingly. In case some quantity is still left uncovered on local suppliers, then such balance quantity may
also be awarded to L1 bidders.
(c) If the procurement of goods which are not divisible in number, such as procurement of services/repairs etc. following
procedure shall be adopted:-
(i) If L1 is from the local supplier, the contract will be awarded to L1 bidder.
(ii) If L1 is not from a local supplier, the lowest bidder among the supplier will be invited to match the L1 price subject to
local supplier's quoted price falling within the margin of purchase preference of 20% and the contract shall be awarded
to such local supplier subject matching the L1 price.
(iii) In case such lowest eligible supplier fails to match the L1 price, the local supplier with the next higher bid within the
margin of purchase preference of 20% shall be invited to match the L1 price and so on and contract shall be awarded
accordingly. In case none of the local supplier within the margin of purchase preference matches the L1 price, then the
contract may be awarded to the L1 bidder.
2. VERIFICATION OF LOCAL CONTENT: -
(i) The local supplier at the time of tender shall be required to provide self-certification that the item offered meets the
minimum local content of 50% and shall give details of location(s) at which the local value addition is made.
(ii) In case the procurement for a value exceeds Rs.10.00 Crores, the local supplier shall be required to provide certification
from statutory auditor or cost auditors of the company (in case of companies) or from a practicing cost accountant or
practicing chartered accountant (in respect of suppliers other than companies) giving percentage of local content.
(iii) False declaration will be in breach of the Code of Integrity under Rule 175(1) (i) (h) of the General Financial Rules for
which a bidder or is successors can be debarred for upto two years as per Rule 151 (iii) of the General Financial Rules
alongwith such other action as may be permissible under law.
3. EXEMPTION OF SMALL PURCHASES: - Not withstanding anything contained in paragraph 3, procurements where the
estimated value to be procured is less than Rs. 5 lakhs shall be exempt from this Clause. However, it shall be ensured by
procuring entities that procurement is not spilt for the purpose of avoiding the provisions of this clause.
Definition for this purpose will be:-
"Local Content" means the amount of value added in India which shall, unless otherwise prescribed by the Nodal Ministry, be
the total value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item
(including all customs duties) as a proportion of the total value, in percent.
"Local Supplier" means a supplier or service provider whose product or service offered for procurement meets the minimum
local content as prescribed under this Clause or by the competent Ministries/Departments in pursuance of this Clause.
"Margin of Purchase Preference" means the maximum extent to which the price quoted by a local supplier may be above the
L1 for the purpose of purchase preference.
All the above terms & conditions are acceptable to us.
Date: SIGNATURE :
NAME (in block letters) :
DESIGNATION :
RUBBER STAMP OF CO. :
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