एमएसटीसी िलिमटेड

(भारत सरकार का उप म)
MSTC LIMITED

(A Govt. of India Enterprise)
CIN: L27320WB1964GOIO26211

पंजीकृ त कायालय: ाट सं. सीएफ 18/2, सड़क सं. 175, ऐ न ए रया 1 सी , ूटाऊन ,
कोलकाता – 700 156, प. ब. भारत
फोन: 91-33-234000-00/11/12/13

Regd. Office: Plot No. CF18/2, Street No. 175, Action Area 1C, New Town,
Kolkata – 700 156, W.B. INDIA

Phone: 91-33-234000-00/11/12/13
www.mstcindia.co.in/www.mstcecommerce.com

TENDER DOCUMENT

For

APPOINTMENT OF INTERNAL AUDITORS FOR MSTC LIMITED
FOR THE FINANCIAL YEAR 2021-22

Sr. No. Description Page No.
1. Schedule of Tender, NIT, Eligibility 2-13
Criteria/Evaluation Criteria, Terms and
Annexure–I Conditions, Tender Submission, etc. 14-18
Scope of Work for Internal Auditors

Annexure–II Format for Technical Evaluation 19-20

Annexure–III Proforma for Commercial/Price Bid 21

Annexure–IV Proforma for Covering letter 22

Annexure–V List of Regions/Branches 23

Annexure–VI Format of Integrity Pact 24-27

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SCHEDULE OF OPEN TENDER

1. E-TENDER No./EVENT No. MSTC/21-22/ET/7

2. MODE OF TENDER Open and e-Tender System

Online submission of Part I - Techno-Commercial
Bid and Part II - Price Bid through
www.mstcecommerce.com/eproc

The intending bidders are required to submit their
offer electronically through this e-tendering
portal. No physical tender is acceptable by MSTC

3. Date of publication of e-Tender through 06-September-2021 at 10:00 Hrs

publication in MSTC websites and Central

Public Procurement Portal

4. Date of availability of NIT to the Vendors for 06-September-2021 at 14:00 Hrs.

downloading

5. Date of Starting of e-Tender for submission of 07-September-2021 at 11:00 hrs.

Online Techno-Commercial Bid and Price Bid at

www.mstcecommerce.com/eproc

6. Date of closing of Online e-tender for 05-October-2021 at 15:00 hrs.

submission of Techno-Commercial Bid & Price

Bid at www.mstcecommerce.com/eproc.

7. Date & time of opening of Part-I (Techno- 05-October-2021 at 16:00 hrs.

Commercial Bid)

8. Date & time of opening of Part-II (Price Bid ) Shall be Informed Separately.

Note: 1. In the event of any unforeseen closure of work / holiday on any of the above days, the same will be opened
/ held on the next working day without any further notice.

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Important instructions for E-procurement

This is an e-procurement event of MSTC The e-procurement service provider is MSTC Limited., Plot no.CF-
18/2, Street No.175, Action Area 1C, New Town, Kolkata - 700156.You are requested to read the terms &
conditions of this tender before submitting your online tender.

Important instructions to bidders for E-procurement

Bidders are requested to read the terms & conditions of this tender before submitting their online tender.

1. Process of E-tender:

A) Registration: The process involves vendor’s registration with MSTC e-procurement portal which is free of cost.
Only after registration, the vendor(s) can submit his/their bids electronically. This submission of bids shall be done
over the internet. The Vendor should posses a valid Class III signing and encryption type digital signature certificate.
Vendors are to make their own arrangement for bidding from a computer connected with Internet. MSTC is not
responsible for making such arrangement. (Bids will not be recorded without Digital Signature).

SPECIAL NOTE: THE PRICE BID HAVE TO BE SUBMITTED ON-LINE AT www.mstcecommerce.com/eproc

i. Vendors are required to register themselves online with https://www.mstcecommerce.com/eproc →
Register (Filling up details and creating own user id and password) → Submit. Please follow the ‘Registra on
Guide’ available in the Registration link before proceeding.

ii. Vendors will receive a system generated mail confirming the registration in their email which has been
provided during filling the registration form.

iii. The Vendors shall have to subscribe to the buyers and categories in order to receive system generated mails.
In order to subscribe, a vendor has to login and click on ‘My Subscription’ followed by ‘Add Subscription’. On
successful subscription, a system generated mail shall be forwarded to the vendor. Please follow the guide
for ‘Subscription’ of ‘Download Guides’ available in the Dashboard before proceeding.

For specific queries/ clarifications, please contact MSTC

Contact person (F&A, MSTC):

1. Shri Inderpal Singh Sandhu

DGM(F&A)

Phone No. 033-234000-00/11/12/13

Email: inderpalsingh@mstcindia.co.in

Other Contact Details:

Helpdesk : 033-234000-20/21/22

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B. System Requirement:

a) Operating System –Windows 11 and above

b) Web Browser- Preferred ‘IE 11’ and above.

c) Security Settings :

i) Tools=>Internet Options=>Security=>Disable protected Mode If enabled-i.e., Remove the tick from the box
mentioning “Enable Protected Mode”.

ii) Tools => Internet Options => Security =>Custom Level=>

 Active X control & plug-ins: Enable all Active-X Controls
 Scripting: Enable “Allow Status Bar Update Via Script”
 Disable “Use Pop-up Blocker”

d) Java: JRE 8 Latest update

e) Other Settings:

i) View => Toolbars=> “Tick” Status Bar.

ii) Tools=>Internet Options=> General=> Click on Settings under “Browsing history/Delete Browsing History”=>
Temporary Internet Files=>Activate “Every time I Visit the Webpage”.

f) For new Version of IE or other “Active –X Filtering” under Tools should not be ticked.

g) Tools =>Internet Options=> Security=> Selected Trusted Sites=> Add Website http://www.mstcecommerce.com.

2. The tender will be opened electronically on specified date and time as given in the NIT.

3. All entries in the tender should be entered in online Price Bid Formats without any ambiguity.

4. All notices and correspondence to the bidder(s) shall be sent by email only during the process, up to the
finalization of tender by MSTC. Hence the bidders are required to ensure that their official email ID provided is valid
and updated at the stage of registration of vendor with MSTC (i.e. Service Provider). Bidders are also requested to
ensure validity of their DSCs (Digital Signature Certificates).

5. E-tender cannot be accessed after the due date and time.

6. Bidding in e-tender:

a. The process involves Electronic Bidding for submission of Bid.
b. The bidder(s) can submit their Bid through internet in MSTC Website www.mstcecommerce.com/eproc
c. The NIT/ Documents shall be available for download in the event catalogue available under ‘Event Details’ of the

Event.
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d. Please follow the guides for ‘Uploading encryption public key’ and ‘Bidding’ under ‘Download Guides’ available in
the Dashboard before proceeding to submit bid.

e. The bidders may upload the bidding related documents in the link ‘My Documents’. The documents uploaded
here shall be available for attaching with this event in the Bid Floor.

f. In order to submit bid, a vendor has to go to ‘Events’ from the menu and select ‘Bid Floor’. The vendor has to
select the buyer ‘MSTC Limited’ from the buyer list in order to view the live events list. The correct event has to
be selected from the event list for participation. A vendor has to submit ‘Eventwise bid details’ that may consist
of ‘Pre Qualification Criteria’, ‘Common Terms’ and/ or ‘Document Attach’. A vendor has to save the Pre
Qualification Criteria, Common Terms and/ or attach documents by clicking the respective buttons. Once the
event specific bids are saved, the status is updated in ‘Event specific bid status’ and the ‘Item specific bid’ button
appears on the bid floor. Thereafter vendor has to click button under ‘Technical Cover’ in order to save the
technical bid for specific lots. Once the technical bid is saved, the ‘Price Cover’ button appears on the screen for
respective lots. Once price bid is saved, the vendor has to click on ‘Final Submit’. On final submission of bid, the
status of the bid submission shall display ‘Bid submitted’ under ‘Item specific bid status’. A vendor shall receive
system generated mail.

NOTE: - The bid cannot be revised once the Final Submit button has been clicked by the bidder. However, if the
bidder wishes to change his bids then he may delete the bid and re- submit the same.

g. In all cases, bidder should use their own ID and Password along with Digital Signature at the time of submission
of their bid.
h. During the entire e-tender process, the bidders will remain completely anonymous to one another and also to
everybody else.
i. The e-tender floor shall remain open from the pre-announced date & time and for the duration mentioned
above.
j. All electronic bids submitted during the e-tender process shall be legally binding on the

bidder. Any bid will be considered as the valid bid offered by that bidder and acceptance of the same by MSTC Ltd will
form a binding contract between MSTC Ltd and the Bidder.

k. It is mandatory that all the bids are submitted with digital signature certificate otherwise the same will not be
accepted by the system.

l. MSTC Ltd reserves the right to cancel or reject or accept or withdraw or extend the tender in full or part as the
case may be without assigning any reason thereof.

m. No deviation of the terms and conditions of the tender document is acceptable. Submission of bid in the e-
tender floor by any bidder confirms his acceptance of terms & conditions for the tender.

n. Unit of Measure (UOM)is indicated in the e-tender Floor. Rate to be quoted should be in

Indian Rupee as per UOM indicated in the e-tender floor/tender document.

7. Any order resulting from this e-tender shall be governed by the terms and conditions mentioned

therein.

8. No deviation to the terms & conditions are allowed.

9. MSTC Ltd has the right to cancel this e-tender or extend the due date of receipt of bid(s) without

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assigning any reason thereof.

10. The online tender should be submitted strictly as per the terms and conditions and procedures

laid down in the website www.mstcecommerce.com/eproc of MSTC Ltd.

11 The bidders should upload all the documents required (if any) as per terms of NIT. Any other document
uploaded which is not required as per the terms of the NIT shall not be considered.

12. The bid will be evaluated based on the filled-in Price bid formats.

13. Canvassing in any form in connection with the Tender is strictly prohibited and the bids submitted by the
bidders who resort to canvassing are liable to be rejected.

COMMERCIAL TERMS & CONDITIONS
Concurrence and remarks for all Commercial Terms & Conditions will be taken Online. Upload supporting documents
wherever necessary. No hardcopy for the same needs to be submitted. If required, the Bidder(s) may be asked to
produce the Original documents before the Tender Committee for verification purpose only.

REQUIREMENT OF VENDOR :
 PC (Personal Computer) connected with Internet.
 Registration with portal www.mstcecommerce.com/eproc.
 Submission of Tendering Fees (If applicable) to MSTC Ltd. before e-tender.
 Class 3 digital certificates in the name of the Company of the vendor (in the name of the Company who
will be submitting the EMD & General Information). This may be obtained from any of the certifying
authorities. Bids will not be recorded without Digital Signature.

Note: Please check the Digital Certificate. In case of any clarification please contact MSTC Ltd., before the scheduled
time of the e-tender.
AMENDMENT OF TENDER DOCUMENTS:

a) At any time prior to the deadline for submission of tenders, MSTC for any reason whether at their own
initiative or in response to a clarification required by any prospective Bidders may modify the Tender
Documents.

b) The amendment shall be part of the Tender Documents and will be notified by publication in the MSTC’s /
Central Public Procurement Portal and will be binding on the prospective Bidders.

c) All the intending Bidders are advised to keep close watch on the website of MSTC / CPP Portal in their own
interest.

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Section 1: Invitation for Proposal

1.1. Introduction

About MSTC Limited:
MSTC Limited is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel, Government of
India. The company was set up in 9th September 1964 to regulate export of surplus ferrous scrap in the early 1970’s
due to growth of scrap using Industries in India, scrap becomes a deficit item and role of MSTC was redefined as that
of a canalizing agency for import of ferrous scrap.

From being a small canalized agency, MSTC has emerged as a major player in the country for promoting e-Commerce
and Trading. It has developed and utilized an immensely popular tool for transacting business over the internet in a
most transparent and fair manner by its e-Auction portal namely, www.mstcecommerce.com . This portal provides a
virtual marketplace for domestic sellers and buyers to do business in metal scrap (ferrous/non-ferrous), surplus stores,
machineries, obsolete spares, vehicles, minerals and agriculture & forest produce etc. The methodology adopted
includes open tender, public auction and e-auction. It has also developed an e-Procurement portal and with end-to-end
e-Procurement services.

1.2. Invitation to Bidders

MSTC Limited invites bids in sealed cover through two bid system i.e. Part-I (Technical Bid) and Part-II (Financial Bid)
from Chartered Accountants Firm/ LLP registered in India meeting all the conditions in the eligibility criteria
(mentioned in Para 2.10, 2.11 & Annexure-II) on Quality and Cost Based Selection basis (QCBS) for conducing Internal
Audit for the financial year 2021-22 with an option to extend the contract by one more year on the same rate, terms &
conditions by mutual consent.

I. The Tender Document can be downloaded from the website of MSTC/CPP.
II. MSTC may, at its own discretion, extend the date for submission of proposals.

Section 2: Instructions to Bidders/Consortium of Bidders(ITB)

2.1.Conflict of interest

I. The selected Firm should provide professional, objective and impartial service and hold MSTC’s interest
paramount.

II. The selected Firm shall not deploy former employees who have served MSTC in last six months.
III. The selected Firm shall not downstream or outsource any part of the scope of work.
IV. Non-disclosure of such an association will lead to termination of Agency.

2.2.Validity of Proposal

The following will be considered for the validity of the proposals deemed submitted:

I. Proposals shall remain valid for a period of 60 days from the date of opening of Price Bid.
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II. MSTC reserves the right to reject a proposal valid for a shorter period as non- responsive.
III. In exceptional circumstances MSTC may solicit the Bidder’s consent to an extension of the period of

validity. The request and the response thereto shall be made in writing.

2.3.Right to Accept or Reject any Proposal

MSTC reserves the right to annul the Tender Document process, or to accept or reject any or all the proposals in
whole or part at any time without assigning any reasons and without incurring any liability to the affected Bidder(s)
or any obligation to inform the affected Bidder(s) of the grounds for such decision.

2.4.Fraud & Corruption

It is required that the Bidders submitting Proposal and Agency selected through this Tender Document must
observe the highest standards of ethics during the process of selection and during the performance and
execution of the Work Order.

For this purpose, definitions of the terms are set forth as follows:

I. "Corrupt practice" means the offering, giving, receiving or soliciting of anything of value to influence the
action of MSTC or its personnel in Work Order executions.

II. "Fraudulent practice” means m isrepresentation of facts, in order to influence an selection process or the
execution of a Work Order, and includes collusive practice among Bidders/Consortium of Bidders (prior to
or after Proposal submission) designed to establish Proposal prices at artificially high or non-competitive
levels and to deprive MSTC of the benefits of free and open competition.

III. “Unfair trade practice” means supply of services different from what is ordered on, or change in the Scope
of Work.

IV. “Coercive practice” means harming or threatening to harm, directly or indirectly, persons or their
property to influence their participation in the selection process or execution of the Work Order.

V. MSTC will reject a proposal for award, if it determines that the Bidder recommended for award, has been
determined to having been engaged in corrupt, fraudulent or unfair trade practices.

VI. MSTC will declare a Firm ineligible, either indefinitely or for a stated period of time, for awarding the
Work Order, if it at any time determines that Firm has engaged in corrupt, fraudulent and unfair trade
practice in competing for, or in executing the Work Order.

2.5.Clarifications &Amendments of Short Tender Document

I. During the process of evaluation of Proposals, MSTC may, at its discretion, ask Bidders / Consortium of
Bidders for clarifications on their proposal. The Bidders /Consortium of Bidders are required to
respond within the prescribed time-frame.

II. MSTC may for any reason, modify the Tender Document from time to time. The amendment(s) to the
Tender Document would be clearly spelt out and the Bidders/ Consortium of Bidders may be asked to
amend their proposal due to such amendments.

2.6.Earnest Money Deposit (EMD)

I. No EMD is required for submission of the Tender Documents

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2.7.Preparation of Proposal

The Bidder must comply with the following instructions during preparation of Proposals:

I. The Bidder is expected to carefully exami ne all the instructions, guidelines, terms and condition and
formats of the Tender Document. Failure to furnish all the necessary information as required by the
Short Tender Document or submission of a proposal not substantially responsive t o all the
requirements of the Short Tender Document shall be at Bidder’s own risk and may be liable for
rejection.

II. The Proposal and all associated correspondence shall be written in English and shall be in a clear
and legible language.

III. No Bidder is allowed to modify, substitute, or withdraw the Proposal after its submission.

2.8.Submission of Proposal

Bidders shall submit their Proposals on or before the last date and time for receipt of proposals mentioned
in Data Sheet.

Proposals shall be submitted in two parts. Each page of all parts should be page numbered and in
conformance to the eligibility qualifications should be clearly indicated. The proposals should not contain
any irrelevant or superfluous documents.

The two parts of the Proposal should be as per following:

Part-I: Techno-Commercial bid will be opened electronically on specified date and time as given in the NIT.
Bidder(s) can witness electronic opening of bid.

Part-II: Price bid will be opened electronically of only those bidder(s) whose Part I Techno-Commercial Bid is
found to be Techno-Commercially acceptable by MSTC. Such bidder(s) will be intimated the date of
opening of Part II Price bid, through valid email confirmed by them.

2.09.Evaluation of Proposals

The Bid will be opened as per the schedule mentioned in the Data Sheet. MSTC may constitute Evaluation
Committee to evaluate the Proposals submitted by Bidders for a detailed scrutiny. Subject to terms
mentioned in the Tender Document, a two stage process, as explained below, will be adopted for evaluation
of proposals submitted by the specified date and time.

2.10 Eligibility

Scrutiny of the Proposals for eligibility will be done to determine whether:
a) The Chartered Accountants Firm/ LLP registered in India shall be in existence for a minimum
period of five years and have Annual Turnover of audit firm shall be at least Rupees One Crore (
Rs.100,00,000/- ).

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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.

The Firms associated with MSTC during previous financial year of 2020-21 in the capacity of either
Auditors or Consultants are not eligible to submit their bid.

In the techno commercial bid, the bidder shall submit a ‘certificate of compliance’ certified by a
Chartered Accountant to the effect of the above.

Those Audit Firms, who will secure 60% marks and above as per Annexure-II would be technically
qualified bidders and price bid will be opened for them only.

b) This empanelment is for the purpose of short listing of Firms only and would not carry any
assurance of allotment of Internal Audit assignments from the MSTC.

c) The offices of MSTC are divided into cluster-wise which are as following:-

Cluster I Head Office (Kolkata), Marketing Dept.

Cluster II ERO (Kolkata), Vizag

Cluster III NRO (New Delhi), Lucknow

Cluster IV WRO (Mumbai), Vadodara, Jaipur

Cluster V SRO (Chennai), Bangalore, Hyderabad

Cluster VI Ranchi, Guwahati, Bhubaneswar, Trivandrum, Chandigarh, Raipur &

Bhopal

d) Firms need to quote for the entire audit work of each cluster comprising of individual Offices/Units
of MSTC falling under that Region. The work can be allocated on the basis of clusters as above.

e) A firm, which has or have been held guilty by the ICAI Disciplinary process in the last 10 years or who is
under investigation or has been charge sheeted or punished for any legal default with imprisonment
will not be considered for appointment of Internal Auditor. ICAI means “The Institute of Chartered
Accountants of India’’.

f) The Company reserves its right to accept or reject any application/s without assigning any reasons
thereof. The decision of the Company for empanelment of the Firms will be final and binding upon
the parties participating in the short- listing.

2.11. Evaluation of Technical Proposal

The Technical evaluation shall be based on the parameters are as mentioned in the Table below.
NOTE: The Technical Proposal must not include any financial information regarding the Price which has to be
submitted separately, failing which the Proposal will be rejected.

SI No. Particulars DETAILS
10 | P a g e (Supporting
Documents

where
applicable are
required to be

uploaded)

1. Name of the Firm with Registration no.

Registration No. and date of Registration of the firm

2. Registered Office Address & date of establishment

3. Branch Office Address & date of establishment

4. Contact No. of the Partner

5. Annual Turnover of audit firm shall be at least Rupees One Crore (
Rs.100,00,000/- )

6. Fax Number, Email address & Website

7. Name, Membership No. and date of Joining of existing partner with the Firm
having the longest association.

Ref : Selection criteria: SI No. 1

8. Name and Membership No. of the full time partners and full time qualified
persons having more than 5 years’ experience in practice in the firm whether
ACA,/FCA as on 01.04. 2021

Ref : Selection criteria: SI No. 2(A)(i)

9. Name and Membership No. of the full time partners and full time qualified
persons having more than 5 years’ experience in practice in the firm as on
01.04.201 having DISA/CISA.

Ref : Selection criteria: SI No. 2(A)(ii)

10. Name, Membership No. and joining date of the full time Partners/ full time
qualified persons with more than 5 years’ experience in practice with the
same firm as on 01.04.2021.

Ref : Selection criteria: SI No. 2(B)

11 Name, Membership No. and joining date of full time qualified assistants who
is an ACA having experience of 5 years or less and is working with the firm as
on 01.04.2021.

Ref : Selection criteria: SI No. 3

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12. Name and date of joining of semi-qualified assistants (Inter Cost/ Inter
Chartered - IPCC - both group) & is working full time with the firm as on
01.01.2019.

Ref : Selection criteria: SI No. 4

13. Year wise experience of the firm in conducting Statutory /Internal Audit in last
10 years:

(a) Name of PSU/Govt. Companies
(b) Other large companies having turnover at least Rs.100 crores
Ref : Selection criteria: SI No. 5

Further, the following documents are required to be submitted online:

1. Self-attested copy of membership certificate of Partners and full time qualified persons issued by Institute of
Chartered Accountants of India

2. Self-attested copy of Certificate of Practice of Partners and full time qualified persons issued by Institute of
Chartered Accountants of India

3. Self-attested copy of Registration Certificate of PCA/Firm/LLP issued by Institute of Chartered Accountants of
India

4. Self-attested copy of PAN Card of PCA/Firm/LLP.
5. Self-attested copy of GST Registration Certificate (if applicable)
6. Self-attested copy of work order issued of Statutory/Internal Audit issued by PSU/Govt. Companies.
7. Self-attested copy of document showing location of Headquarters/Branch office at Kolkata/other places

In absence of the above documents the offer will be rejected. The documents uploaded online to the offer
must be serially numbered and duly signed by the bidder with official seal.

The above technical proposal also includes

1. MSTC may, at its discretion, call for additional information from the Bidder(s). Such information has to be
supplied within the set out time-frame, otherwise the Evaluation Committee shall make its own reasonable
assumptions at the total risk and cost of the Bidders/ Consortium of Bidders and the Proposal is liable to be
rejected. Seeking clarifications cannot be treated as acceptance of the proposal.

2. For verification of information submitted by the Bidders /Consortium of Bidders, the Committee may visit
Bidder’s offices at its own cost. The Bidders shall provide all the necessary documents, samples and reference
information as desired by the Committee. The Bidders shall also assist the Committee in getting relevant
information from the Bidders / Consortium of Bidders references, if desired.

3. Those Audit Firms, who will secure 60% marks and above as per Annexure-II would be technically,

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qualified bidders.
4. Bidder has to submit covering letter as per Annexure IV.
5. Integrity Pact as per Annexure VI has to be signed by the bidder and uploaded.
6. Only technically qualified Proposals shall be considered for Financial bid Opening.
2.13. Evaluation of Financial Proposal

Financial Bids of only those bidders whose Technical Score is more than 60 shall be opened. Quality and Cost Based
Selection (QCBS) of Bids shall be adopted and a final combined score will be arrived at by applying relative weightage to
the score of technical criteria which will be 60% & score of financial bid which will be 40%. The proposal with highest
weighted combined score shall be selected for initially one-year term. Subsequently, based on satisfactory
performance, extension may be provided with the approval of Competent Authority.

Example for Quality and Cost Based Selection (QCBS) is given hereunder:

Bidder Technical Score Financial Bid Financial Score Total Score
(Assumed) = X (Assumed) = Y (L*100/Y) = Z (X*0.60 + Z*0.40)

A 90 7 85.71 88.28

B 80 7 85.71 82.28

C 60 6 (L) 100 76.00

In the above case, Bidder ‘A’ will be selected on the basis of highest score as per QCBS method. He will be paid Rs.7/- as
per his quote even if his financial bid is higher or equal than other bidders.

MSTC will correct any computational errors. When correcting computational errors, in case of discrepancy
between a partial amount and the total amount (Inclusive of taxes), or between word and figures, the former
will prevail.

Bidders are requested to visit our website regularly for any amendment/addendum/corrigendum/extension
until last date.

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ANNEXURE-I

SCOPE OF WORK FOR INTERNAL AUDITORS
The Internal Audit will be carried out of the following offices/units of the Company as per agreed audit plan:

Cluster Offices/Units Frequency of Submission
audit/visit Of report
Cluster I Head Office By 15th day of next month
Cluster II Marketing Dept. Quarterly By 7th day of next month
ERO (Kolkata), Vizag Monthly By 15th day of next month
Quarterly

Cluster III NRO (New Delhi), Lucknow Quarterly By 15th day of next month

Cluster IV WRO (Mumbai), Vadodara, Jaipur Quarterly By 15th day of next month

Cluster V SRO (Chennai), Bangalore, Hyderabad Quarterly By 15th day of next month

Cluster VI Ranchi, Guwahati, Bhubaneswar, Annually By 15th day next month
Trivandrum, Chandigarh, Raipur & Bhopal after the financial year end

1st and 2nd Quarter of FY 2021-22, audit to be completed by one month of the appointment letter and submission of
Audit Report within 15 days thereof.

The illustrative (but not exhaustive) list of tasks to be performed for Internal Audit by Practicing
Audit Firm Partnership/Proprietorship/Individual is given as under:-

A. Following would be the scope covered for Head Office.

FUNCTIONS AREAS REVIEWOFSUB-PROCESSES
E-COMMERCE
E-AUCTIONS- -Bidders-Registration
MARKETING
PROCUREMENT&SALES- -Work Order/Agreements with Principals

(INCLUDINGCOALCELL) -E-auctions
-Invoicing & Collections

PROCUREMENTOFIMPORTED/DOME -Selection of Principals/Customer and fixation

STIC MATERIALS UNDER CASH N Of exposure limit

CARRY BASIS OR BACKED BY 110% -Memorandum of Agreements

BANK GUARANTEE -Import Shipments

-Domestic Purchases & Sales

-Insurance

-Lifting status of materials

-Service Charge & Collection

-Settlement of accounts with Customers

-Compliance review of procedures mentioned in

Corporate risk

-Risk Management Policy(RMP)and Foreign

Trade(FI)manual

-Review of Stock Verification Reports

- Review of proposal files on monthly basis

- Risk Management System

- Adequacy of Internal Control

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OPERATIONAL FIXED ASSETS -Procurement of Assets
-Capitalization of Assets
HR&PAYROLL -Updating and Maintaining Fixed Assets
Register
CASH&BANK -Calculation and Accounting of Depreciation
-Sale/Disposal/Transfer/Write-off of Assets
-Obtaining and Monitoring Asset Insurance
-Physical verification process
-Repairs & Maintenance of Assets
-Process of Identification of idle assets, if any

-Updation and maintenance of Employee
personnel Files &Master
-Recruitment & Selection
-Separation/Transfers
-Attendance & Leave Records
-Preparation and adhering to Training
activities
-Performance Related Pay (PRP)
-Deduction & Deposit of Provident Fund
-Approving and Recovery of Employee
Loans & Advances
-Payroll Processing Process
-Process of Fixation and calculation of
arrears as per revision of pay scale, if any

-Cash Payments & Receipts
-Bank Payments & Receipt
-Custody of Physical cash & Cheque books
-Physical Verification Process
-Obtaining and Monitoring Cash Insurance
&Security
-Verification of Bank Reconciliation
Statement
-Defining and adhering to Cash Levels &
Holding
-Short Term Deposits and related interest
review
-Short Term Bank Loan and related interest
Repayment adherence

15 | P a g e
ADMINISTRATION Review of following expenses:
-Car Hire
REGULATORY LAW DEPARTMENT -Repair & Maintenance
-Guest House
EDP DEPARTMENT -Travel & Tours
-Office Rent
HINDI DEPARTMENT -Security Service
-Printing & Stationery
CORPORATESOCIAL -Courier Service
RESPONSIBILITY(CSR) -Communication Charges
DEPARTMENT -Review of status of legal pending cases
STATUTORY COMPLIANCES -Empanelment of Lawyers and their payments

SECRETARIAL -Review of IT General Controls around data access,
DEPARTMENT data and physical security, backup, help desk

-Compliance to Regulatory requirements of
Annual program for transacting the official work
of the union in Hindi issued by the Department of
Official Language

-Review of CSR activities as per CSR
Committee guidelines

-Timely deposit of dues and returns, i.e. TDS, TCS,
Corporate Tax, GST
- SEBI (LODR)

Review of the following
-Systems and procedures to comply with the
Provisions of the Companies Act,2013 and
DPE Guidelines on Corporate Governance
-System for maintaining statutory registers,
agenda and minutes
-Transfer of Dividend amount to a separate bank
account and dispatch of dividend
Warrants within the specified period
-System of dividend payment and
reconciliation between dividend amount
payable and actual dividend paid

16 | P a g e
OTHERS CORPORATE -Transfer of unpaid dividend to IE &PF
COMMUNICATIONS Within the specified period
-Dispatch of Annual Reports within the
Specified period

Corporate Advertisement release process and
Their payments

B. Following would be the scope covered for Regional and Branch Offices.

FUNCTIONS AREAS REVIEW OF SUB-PROCESSES
E-COMMERCE E-AUCTIONS -Selling Agency Agreements with Principals
TENDER/SALES -Bidders-Registration
-E-auctions and tenders
OPERATIONAL FIXED ASSETS -Invoicing & Collections
-Compliance review of procedures mentioned in
Domestic Trade Manual
-Internet Payment Gateway

-Procurement of Assets
-Capitalization of Assets
-Updating and Maintaining Fixed Assets
Register
-Sale/Disposal/Transfer/Write-off of Assets
-Obtaining and Monitoring Asset Insurance
-Physical verification process
-Repairs & Maintenance of Assets
-Process of Identification of idle assets, if any

-Separation/Transfers

HR -Attendance & Leave Records

- Approving and Recovery of Employee Loans

CASH & BANK - Cash Payments & Receipts
- Bank Payments & Receipt
- Custody of Physical cash & Cheque books
- Physical Verification Process- Obtaining and
Monitoring Cash Insurance & Security
- Verification of Bank Reconciliation
Statement
- Defining and adhering to Cash Levels & Holding
- Short Term Deposits and related interest review

17 | P a g e
ADMINISTRATION Review of following expenses:
-Car Hire
REGULATORY LAWDEPARTMENT -Repair & Maintenance
STATUTORYCOMPLIANCES -Travel & Tours
-Office Rent
-Security Service
-Printing & Stationery
-Courier Service
-Communication Charges

-Review of status of legal pending cases
-Empanelment of Lawyers and their payments

-Timely deposit of dues and returns, i.e. TDS,
TCS, Corporate Tax, GST

- SEBI (LODR)

18 | P a g e
ANNEXURE–II
FORMAT FOR TECHNICAL EVALUATION

Selection Criteria for Engagement of Internal Auditors

SL. No. CRITERIA BASIS OF MARKS MAXIMUM
MARKS

1 Experience of the Firm: 1.5 mark per year (fraction of the year to be 15

ignored)

The minimum experience is 5 years for

a Firm to be eligible and for each year’s

experience they would get 1.5 marks.

Shall be reckoned from the date of

joining of an existing partner with the

Firm and having the longest

association with the firm.

2(A)(i) Number of full time partners / full time 3 marks for each partner/person who is ACA 25

qualified persons having more than 5 4 marks for each partner/person who is FCA

years’ experience in practice in the

firm/Limited Liability Partnership who

is in the firm as on 01.04.2021 and

continuing thereafter.

2(A)(ii) Number of full time partners / full time 2 marks for each partner/person having DISA/CISA 5

qualified person having more than 5

years’ experience in practice in the

firm/ Limited Liability Partnership

having DISA/CISA who is in the firm as

on 01.04.2021 and continuing

thereafter.

19 | P a g e
2(B) Length of association of the full time 4 marks for each partner/person above 20 years. 10

Partner/ full time qualified person with

more than 5 years’ experience in 3 marks for each partner /person above 15 years.

practice with the same firm (who is in

the firm as on 01.04.2021and 2 marks for each partner/person above 10 years.
continuing thereafter).

1 mark for each partner/person below 10 Years but
above 5 Years.

(fraction of the year to be ignored)

3. Number of full time qualified assistants 1.5 marks for every qualified assistant 10

who is an ACA having experience of 5

years or less and is working with the

firm as on 01.04.2021 and continuing

thereafter.

4 Number of full time semi- 0.75 mark per semi-qualified assistant 5

Qualified Assistants (Inter Chartered -

IPCC - both group) & is working full

time with the firm as on 01.04.2021

and continuing thereafter.

5 Experience of the firm in conducting 2 marks per year of audit. 20

Statutory/Internal Audit in PSU/Govt.

Companies including concurrent audit

in PSU Banks, large companies with

turnover of at least Rs. 100 Crores each

year during the last 10 years.

6(A) Audit firms having Registered 2 marks per city 10

Office/Branch Office in different cities

as on 01.04.2021 and continuing

thereafter, wherein the Company

Headquarter is situated or is having its

Regional/Branch offices.

TOTAL MARKS 100

20 | P a g e
ANNEXURE-III

PRICE-BID

(On letter head of Firm/Proprietorship/Individual)
PROFORMA FOR COMMERCIAL/PRICE BID (For conducting Internal Audit of MSTC Ltd for the
Financial Year 2021-22).

Rate Amount in words
Sl.No. Particulars Not to Quote

(Rs)
1 Fees for Audit work for the FY 2021-22

Cluster I - Head Office (Kolkata), Marketing Dept.

Cluster II - ERO (Kolkata), Vizag

Cluster III - NRO (New Delhi), Lucknow

Cluster IV - WRO (Mumbai), Vadodara, Jaipur

Cluster V - SRO (Chennai), Bangalore, Hyderabad

Cluster VI – Ranchi, Guwahati, Bhubaneswar,
Trivandrum, Chandigarh, Raipur & Bhopal

(Firms need to quote for Cluster-wise. One firm
may quote for individual Cluster or for all the
Clusters)
2 Out of Pocket Expenses Payable at actual subject to MSTC
Travelling rules
3 GST as applicable on fees (in %)
4 TOTALAMOUNT

Signature:
Name & Designation of the Authorized Signatory:

Seal of the Firm/Proprietorship/Individual:

Date:

Place:

21 | P a g e
ANNEXURE–IV

(On letter-head of Firm/Proprietorship/Individual)
Format of Covering letter
Date:
To
DGM (F&A)
MSTC Limited
Plot no.CF-18/2, Street No.175, Action Area 1C, New Town,
Kolkata - 700156

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 60 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 purpose 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.MSTC 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.

22 | P a g e
ANNEXURE-V

LIST OF REGIONS/BRANCHES of MSTC

Sr.No. Region Address
1 Head Office s
2 Plot no.CF-18/2, Street No.175, Action Area 1C, New Town,
3 Kolkata
4
5 Eastern Regional Office Plot no.CF-18/2, Street No.175, Action Area 1C, New Town,
6 (ERO) Kolkata
Western Regional Office 607-608 Raheja Centre, Nariman Point, Mumbai-
7 (WRO) 400021
Northern Regional Office
8 (NRO) 30/31A Jeevan Vikas Building,
9 Southern Regional Office 1st Floor, Asaf Ali Road(opp.Hamdard) New Delhi-110002
(SRO)
10 Branch Office(Bangalore) ISPAT Bhavan, 3rd Floor, No.5, Kodambakkam High Road,
11 Chennai - 600 034
12 Branch Office(Vizag) 19/5&19/6, 3RDFLOOR
13 KAREEMTOWER, CUNNINGHAM ROAD BANGALORE-
14
15 52
16 4th FLOOR JEEVAN SAMRIDDHI, D No 42-1-45/1/1, NEW
17 INVESTMENT BUILDING, THIKKANA ROAD, VISHAKAPATNAM,
18 ANDHRA PRADESH - 530004

Branch Office(Vadodara) 21,Kamalanjali Apartment,2ndFloor, Opp.Tube Company,

Old PadraRoad,Akota Vadodara-390020

Branch Office (Hyderabad) No 5-9-13, 7th Floor, Taramandal Complex, Saifabad,

Between Sahara Manzil And Samrat Complex, Hyderabad,

Telangana 500004.

Branch Office (Bhopal) 1st Floor, Tilhan Sangh Bhawan,1 Arera Hills MPOILFED

Building Bhopal-462004.

Branch Office (Bhubaneswar) 8th FLOOR, IDCO TOWER, JANAPATH ROAD, UNIT-9,

BHUBANESWAR - 751022,ODISHA

Branch Office (Chandigarh) Telephone Exchange Building, 2nd Floor, Sector-5,

Panchkula-134109

Branch Office (Guwahati) BSNL Exchange Building, Beltola Basistha Road, Wireless

Guwahati, ASSAM-781038

Branch Office (Jaipur) Room No. 114, First Floor, BSNL Building, Lal Kothi, Behind

Nagar Nigam, Jaipur, 302015

Branch Office (Lucknow) 2nd Floor, Centre Court Building, Park Road, Hazratganj,

Lucknow - 226001, Uttar Pradesh

Branch Office (Raipur) Hall No 6 & 7, 3rd floor, Udyog Bhawan, Telibandha, Ring
Road 1 , Raipur, 492006

Branch Office (Ranchi) Exploration Building, 4th floor, CMPDI Campus, Gondwana
Place, Kanke Road, Ranchi-834 031, Jharkhand

Branch Office (Trivandrum) 1st Floor, BSNL CTO Building, Opp Kerala State Secretariat,
Mahathma Gandhi Rd, Statue, Thiruvananthapuram-
695001

23 | P a g e
ANNEXURE–VI

INTEGRITY PACT

Between

MSTC LTD, hereinafter, referred to as "MSTC",
and

……………………….hereinafter referred to as "The Vendor/Service Provider/Buyer"

Preamble

WHREAS, MSTC is acting as an agent for the purpose of disposal/sale/booking/procurement of various
commodities;

And
WHEREAS, MSTC values full compliance with all relevant laws and regulations, and the principles of
economical use of resources, and of fairness and transparency in its relations with its Principals.

In pursuance, thereto, the following clauses of the Integrity Pact will be applicable and this
document shall be deemed to be an integral part of the Agency Agreement between us.

In order to achieve this goal, MSTC may seek cooperation of the renowned international Non-
Governmental Organization "Transparency International" (TI). Following TI's national and international
experience, MSTC may appoint an external independent Monitor who will monitor the tender/auction/e-
auction/e-sale/e-booking process and the execution of the contract for compliance with the principles
mentioned above.

IP-2
Section - 1 Commitments of MSTC
MSTC commits itself to take all measures necessary to prevent corruption and to observe the following
principles :-

a) No employee of MSTC, 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
him/herself or third person, any material or immaterial benefit which he/she is not legally
entitled to.

b) MSTC will, during the tender/auction/e-auction/e-sale/e-booking process, provide to all
Buyer(s)/Vendor(s) the same information and will not provide to any Buyer/Vendor
confidential/additional information through which the Buyer/Vendor could obtain an
advantage in relation to the tender/auction/e-auction/e-sale/e-booking process or the
contract execution.

c) MSTC will exclude from the process all known prejudiced persons.
If MSTC obtains information on the conduct of any of its employees which is a criminal offence under the
relevant Anti-Corruption Laws of India, or if there be a substantive suspicion in this regard, MSTC will
inform its Vigilance Office and in addition can initiate disciplinary actions.

Section - 2 Commitments of the Buyer/Vendor

24 | P a g e
The Buyer/Vendor commits himself to take all measures necessary to prevent corruption. He commits
himself to observe the following principles during his participation in the tender/auction/e-auction/e-
sale/e-booking/e-procurement process and during the contract execution.

IP-2
i) The Buyer/Vendor will not, directly or through any other person or firm, offer, promise or give

to MSTC, to any of MSTC's employees involved in the tender/auction/e-auction/e-sale/e-
booking process or the execution of the contract or any third person any material or immaterial
benefit which he/she is not legally entitled to, in order to obtain in exchange an advantage
during the tender process or the execution of the contract.
ii) The Buyer/Vendor will not enter with other Buyer(s) into any illegal agreement or
understanding, whether formal or informal. This applies in particular to prices, specifications,
certifications, subsidiary contracts, submission or non-submission of bids or actions to restrict
competitiveness.
iii) The Buyer/Vendor will not commit any criminal offence under the relevant Anti-Corruption
Laws of India; further the Buyer/Vendor will not use improperly, for purposes of competition or
personal gain, or pass on to others, any information provided by MSTC as part of the business
relationship, regarding plans technical proposals and business details, including information
contained or transmitted electronically.
iv) The Buyer/Vendor 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 Buyer/Vendor will not instigate third persons to commit offences outlined above or be an
accessory to such offences.

IP-2
Section - 3 Disqualification from tender process and exclusion from future contracts

If the Buyer, before contract award, has committed a serious transgression through a violation of Section
2 above or in any other form such as to put his reliability or credibility as Buyer into question, MSTC is
entitled to disqualify the Buyer from the tender/auction/e-auction/e-sale/e-booking process or to
terminate the contract, if already signed, for such reason.

i) If the Buyer/Vendor has committed a serious transgression through a violation of Section 2 above
such as to put his reliability or credibility into question, MSTC is entitled also to exclude the
Buyer/Vendor from future contract award 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 Buyer 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 Buyer/Vendor can prove that he has restored/recouped the damage caused by him and
has installed a suitable corruption prevention system, MSTC 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 MSTC has disqualified the Buyer from the tender/auction/e-auction/e-sale/e-booking process

prior to the award according to Section 3 above, MSTC is
IP-2

entitled to demand from the Buyer liquidated damages equivalent to 3% of the value of the offer.
2. If MSTC has terminated the contract according to Section 3, or if MSTC is entitled to terminate the

contract according to Section 3, MSTC shall be entitled to demand from the Vendor liquidated
damages equivalent to 5% of the contract value.

25 | P a g e
3. If the Buyer/Vendor can prove that the exclusion of the Buyer from the tender/auction/e-auction/e-
sale/e-booking 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 Buyer/Vendor has to
compensate only the damage in the amount proved. If MSTC can prove that the amount of the
damage caused by the disqualification of the Buyer 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 Buyer declares that no previous transgressions occurred in the last 3 years with any other
company in any country conforming to the TI approach or with any other Public Sector Enterprise
in India that could justify his exclusion from the tender process.

2.If the Buyer 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.

IP-2

Section - 6 Equal treatment of all Buyer(s)/Vendor(s)

1.The Buyer/Vendor undertakes to demand from all subcontractor(s) a commitment consistent with
this Integrity Pact, and to submit it to MSTC before contract signing.

2.MSTC will enter into agreements with identical conditions as this one with all Buyer(s), Vendor(s).
3.MSTC will disqualify from the tender process all Buyer(s) who do not sign this Pact or violate its

provisions.
Section - 7 Criminal Charges against violating Buyer(s)/Vendor(s)

If MSTC obtains knowledge of conduct of a Buyer, Vendor or of an employee or a representative or an
associate of a Buyer, Vendor which constitutes corruption, or if MSTC has substantive suspicion in this
regard, MSTC will inform the Vigilance Office.
Section - 8 External Independent Monitor

1.MSTC may appoint competent and credible External Independent Monitor for this Pact. In such case
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 Chairperson of the Board of MSTC.
IP-2

3.The Monitor has the right of access without restriction to all Project documentation of MSTC. The
Vendor will also grant the Monitor, upon his request and demonstration of a valid interest,
unlimited access to his project documentation. The Monitor is under contractual obligation to treat
the information and documents of the Buyer/Vendor with confidentiality.

4.MSTC will provide to the Monitor sufficient information about all meetings among the parties related
to the project provided as meetings could have an impact on the contractual relations between
MSTC and the Vendor. 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 MSTC and request the Management to discontinue or heal the violation, or to
take other relevant action. The Monitor can in this regard subject 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 regularly submit a written report to the Chairperson of the Board of MSTC and,
should the occasion arise, submit proposals for correcting problematic situations.

26 | P a g e
7.If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence
under relevant Anti-Corruption Laws of India, and the Chairperson 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.

IP-2

Section - 9 Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Vendor 12 months after

the last payment under the respective contract, and for all other Buyers' 6 months after the contract

has been awarded.

Section - 10 Other Provisions

1. This agreement is subject to Indian Law. Place of performance and jurisdiction is the Corporate

Office of MSTC.

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 MSTC For Buyer/Vendor

Place : ___________ Witness 1 : _________________

Date : __________ Witness 2 : _________________

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