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Tamil Nadu Industrial Investment Limited, Chennai, Tamil Nadu
January, 22nd 2019
THE TAMILNADU INDUSTRIAL INVESTMENT
        CORPORATION LIMITED
          (A Government of Tamilnadu Undertaking)
     No. 692, Anna Salai, Nandanam, Chennai ­ 600 035
               Telephone No.: 044-2433 1203
                    Website: www.tiic.org




        Request for Proposal (RfP)
             For Concurrent Audit of
            Operations of TIIC Branch
       Offices at various locations (9 Nos)
               And at Head Office




                                      RfP for Concurrent Audit - Page 1 of 32
         The Tamilnadu Industrial Investment Corporation Limited
          No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


 Critical Information Summary
     Last date for submission of Proposal in response to the Request for
     Proposal (RfP) : January 30, 2019 (by 5.00 PM)
     One hard copy need to be submitted in sealed cover labelled (top of
     the envelope) "Proposal/ Application for Concurrent Audit of
     Operations of _________ Branch Office/ Head Office" at the
     following address. On top of the envelope, clearly mention the name of
     the BO/Head Office for which the applicant has applied, as detailed
     below:
Proposal / Application for Concurrent Audit of Name of the BO/Head Office
                                 To,
                                 The General Manager (Internal Audit)
                                 Tamilnadu Industrial Investment Corporation Limited
                                 No.692, Anna Salai, Nandanam,
                                 Chennai ­ 600 035.
                                 Telephone: (044) 24331203
                                 Email: internalaudit@tiic.org
 From:

     For queries and clarifications regarding the RfP, please feel free to
     contact us at the above address/telephone number/e-mail id.
     Last date for requesting any clarifications: January 25, 2019 (by
     5.00 PM). Please note that all the information desired needs to be
     provided with the Proposal. Proposal with incomplete information is
     liable to be rejected.
    The Proposals / Applications will be opened as per the following
    schedule at the address as indicated above. It would be the bidder's
    responsibility to depute one representative for the opening of bids. No
    separate communication in this regard will be sent to the bidders.
                                                                Date and Time of
              S. No        Name of the Branch
                                                              opening the proposals
                1         Chennai                            31/01/2019, 11.00 AM
                2         Tiruvallur                         31/01/2019, 11.30 AM
                3         Tambaram                           31/01/2019, 12.00 Noon
                4         Coimbatore                         31/01/2019, 12.30 PM
                5         Tirupur                            31/01/2019, 02.30 PM
                6         Erode                              31/01/2019, 03.00 PM
                7         Kurichi                            31/01/2019, 03.30 PM
                8         Nagercoil                          31/01/2019, 04.00 PM
                9         Hosur                              31/01/2019, 04.30 PM
                10        Head Office                        31/01/2019, 05.00 PM



                                                                   RfP for Concurrent Audit - Page 2 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


1. Introduction and Disclaimers
1.1.        Purpose of RfP
The purpose of RfP is to shortlist experienced professional firms /
Limited Liability Partnerships (LLP) / Limited Companies of Chartered
Accountants, for undertaking Concurrent Audit of Operations of Branch
Offices (BOs) at the following locations and of the Head Office of TIIC at
Chennai.
                                 Table ­ I
                                            Loan O/s as on
          S.     Regional        Branch
                                            31.12.2018 (Rs.
          No.      Office      Office (BO)
                                                in Crore)
           1   Chennai        Chennai            79.79
           2   Chennai        Tambaram          106.71
           3   Chennai        Tiruvallur        160.26
           4   Salem          Hosur              53.07
           5   Coimbatore Coimbatore             74.31
           6   Coimbatore Kurichi                51.51
           7   Coimbatore Tirupur                61.34
           8   Coimbatore Erode                  82.56
           9   Tirunelveli    Nagercoil          79.40
          10         --       Head Office          --
1.2.        Information Provided
The Request for Proposal document contains statements derived from
information that is believed to be relevant at the date but does not
purport to provide all the information that may be necessary or desirable
to enable an intending contracting party to determine whether or not to
enter into a contract or arrangement with TIIC. Neither TIIC nor any of its
employees, contractors or advisors gives any representation or warranty,
express or implied, as to the accuracy or completeness of any information
or statement given or made in this document. Neither TIIC nor any of its
employees, contractors, or advisors has carried out or will carry out an
independent audit or verification exercise in relation to the contents of
any part of the document.
1.3.        Disclaimer
Subject to any law to the contrary, and to the maximum extent permitted
by law, TIIC and its officers, employees, contractors and advisers
disclaim all liability from any loss or damage (whether foreseeable or not)
suffered by any person acting on or refraining from acting because of any
information including forecasts, statements, estimates or projections
contained in this RfP document or contents ancillary to it whether or not



                                                             RfP for Concurrent Audit - Page 3 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


the loss or damage arises in connection with any negligence, omission,
default, lack of care or misrepresentation on the part of TIIC or any of its
officers, employees, contractors or advisers.
1.4.        Costs to be borne by Applicants
All costs and expenses incurred by Applicants in any way associated with
the development, preparation, and submission of responses, including
but not limited to the attendance at meetings, discussions,
demonstrations, etc. and providing any additional information required
by TIIC, will be borne entirely and exclusively by the Applicant.
1.5.        No Legal Relationship
No binding legal relationship will exist between any of the Applicants and
TIIC until execution of a contractual agreement.
1.6.        Applicant's obligation to inform itself
The Applicant must conduct its own investigation and analysis regarding
any information contained in the RfP document and the meaning and
impact of that information.
1.7.        Evaluation of Offers
Each applicant acknowledges and accepts that TIIC may in its absolute
discretion apply selection criteria specified in the document for
evaluation of proposals for shortlisting / selecting the eligible Concurrent
Auditor(s). The RfP document will not form part of any contract or
arrangement, which may result from the issue of this document or any
investigation or review carried out by a Recipient.
1.8.        Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all
the information / data / operations, etc. of TIIC.
1.9.        Errors and Omissions
Each applicant should notify TIIC of any error, omission, or discrepancy
found in this RfP document.
1.10.       Acceptance of Terms
An Applicant will, by responding to TIIC for RfP, be deemed to have
accepted the terms of this Introduction and Disclaimer.
1.1.        Lodgment of Proposal in response to RfP
   1.1.1.            Proposal / Application submission:
    Proposal / Application submission is required to be done by
    January 30, 2019 (by 5.00 PM) as under:-


                                                             RfP for Concurrent Audit - Page 4 of 32
The Tamilnadu Industrial Investment Corporation Limited
 No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


One Hard copy should be submitted at the following address in
sealed single envelope superscribed at the top of the envelope as
­ "Proposal / Application for Concurrent Audit of Operations of
_____ Branch Office/Head Office".
         The General Manager (Internal Audit)
         Tamilnadu Industrial Investment Corporation Limited
         No.692, Anna Salai, Nandanam,
         Chennai ­ 600 035.
         Telephone: (044) 24331203
         Email: internalaudit@tiic.org
Proposal must be submitted before the aforementioned closing date.
         ·   Faxed / e-mailed copies of any submission are not
             acceptable and will be rejected by the Corporation.
         ·   All Proposals, with all relevant attachments must be
             submitted in a sealed envelope, as detailed above.
The person(s) signing the Proposal shall initial all pages of the
Proposal. The Proposal shall contain no erasures or overwriting except
as necessary to correct errors made by the applicant, in which case
corrections shall be initialed by the person(s) signing the Proposal.
Along with the Proposal/ Application, this RfP with all annexures shall
be signed in each page by the authorised signatory.
If the Proposal / submission does not include all the required
information / documents or is incomplete, the proposal is liable to be
rejected.
All submissions, including any accompanying documents, will become
the property of TIIC. Applicants shall be deemed to license, and grant
all rights to TIIC to reproduce the whole or any portion of their
submission for the purpose of evaluation, to disclose the contents of
the submission to other Respondents and to disclose and / or use the
contents of the submission as the basis for any resulting RfP process,
notwithstanding any copyright or other intellectual property right that
may subsist in the submission or accompanying documents.
1.1.2.            Proposal / Application Validity Period
The proposal must remain valid and open for evaluation according
to their terms for a period of at least six (6) months from the time
the RfP closes on the deadline for lodgment of Proposal.
1.1.3.            Cost of RfP Document
No cost has been prescribed for the RfP Document




                                                          RfP for Concurrent Audit - Page 5 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


   1.1.4.            One Proposal / application per applicant
   Applicant can submit Proposal/ application for BO/HO, where
   applicant has regular set-up, either Head Office or Full Fledged
   Branch Office, at respective nearest locations of TIIC Branches / Head
   Office.
   AS A MATTER OF POLICY, TIIC WILL ENGAGE THE SERVICES OF
   FIRM / LLP / COMPANY FOR CARRYING OUT CONCURRENT
   AUDIT OF ONE BO ONLY, AT A TIME. ACCORDINGLY IN CASE, IF
   APPLICANT APPLIED FOR MULTIPLE BRANCHES AND FOUND
   SUITABLE, THEY MAY BE CONSIDERED FOR ONE BRANCH ONLY.
   Firms already engaged with TIIC:
       ·    TIIC shall engage the services of a firm / LLP / Company for
            carrying out Concurrent Audit of one BO only or HO
            Departments at a time. Accordingly, in case, the applicant has
            been already engaged by TIIC in any of its branches, such
            applicant will not be eligible for the proposed assignment.
       ·    In respect of such firms / LLP / Company after completion of
            specific period (continuous three years for a branch/HO), a
            cooling period of one year would be observed for considering the
            services of the CA firm again in the same Branch Office.
            However, the CA firm / LLP / Company could be considered for
            award of contract to carry out concurrent audit of any other
            Branch Office of the Corporation.
   1.1.5.            Late Applications
   Any proposal / application received after the deadline for submission
   of the proposals / applications will be treated as "Late Application"
   and such late applications shall not be considered at all for
   competitive consideration.
1.2.        Requests for Proposal
Applicants are required to direct all communications related to this RfP,
through the Nominated Point of Contact person:
Contact          1. Mr. G. Srinivasan, General Manager (Internal Audit)
                 2. Mr. M. Rangaraju, Senior Manager (Internal Audit)
Email            internalaudit@tiic.org
Telephone        (044) 24331203
TIIC may, in its absolute discretion, seek additional information or
material from any applicant after the RfP closes and all such information




                                                             RfP for Concurrent Audit - Page 6 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


and material provided must be deemed to form part of that Applicant's
response.
Applicants should provide details of their contact persons, Fax,
Telephone, email and full address(s) to ensure that replies /
communications regarding RfP could be conveyed promptly.
If TIIC, in its absolute discretion, deems that the originator of any
question will gain an advantage by a response to the question, then TIIC
reserves the right to communicate such response to all Applicants.
TIIC may, in its absolute discretion, engage in discussion or negotiation
with any Applicant (or simultaneously with more than one Applicant)
after the proposal closes to improve or clarify any response.
1.3.        Notification
TIIC will notify all short-listed Applicants in writing as soon as
practicable about the outcome of their proposal. TIIC is not obliged to
provide any reasons for any such acceptance or rejection.
1.4.        Disqualification
Any form of canvassing / lobbying / influence / query regarding
shortlisting, status, etc. will be a disqualification.
2. About TIIC
2.1. Tamilnadu Industrial Investment Corporation Ltd. [TIIC] is a Premier
     Financial Corporation established in the year 1949 and functions as
     a State Financial Corporation in Tamilnadu. TIIC fosters industrial
     development in Tamilnadu by providing financial assistance to
     industries for purchase of land, machinery and construction of
     buildings. TIIC provides financial assistance at competitive interest
     rates for setting up of new industrial units and for expansion /
     modernisation / diversification of existing industries in Tamilnadu.
     It also offers loan for service sector projects such as hotels, hospitals
     and tourism related projects.
       The Corporation provides its services through a network of Branch
       Offices located all over Tamilnadu. Detailed information on the
       functions of the Corporation is provided on the website, www.tiic.org.
2.2. While TIIC provides assistance to micro, small, medium and large
     enterprises, about 90% of the assistance goes to the micro, small
     and medium enterprises [MSME] sector and thus, acts as a catalyst
     for industrial promotion in the State of Tamilnadu.




                                                             RfP for Concurrent Audit - Page 7 of 32
       The Tamilnadu Industrial Investment Corporation Limited
        No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


3. Project Particulars
3.1. Project Objective and Scope of Operations of TIIC's Branches
     and HO Departments
The functions of TIIC's Branch Office(s) include credit dispensation under
various loan schemes and other day to day operations of the Corporation.
The selected Chartered Accountant Firms / Companies would undertake
concurrent audit of operations of the Branch(es) on daily / regular basis
and based on their findings also regularly suggest measures to improve
the functioning of operations of Branch of TIIC. Assignment would also
include verification and confirmation on the adequacy of internal controls
and IT system for sustaining operations. The staff deputed by the firm /
LLP / Company of Chartered Accountants for carrying out the audit
should be qualified and experienced in the area of work.
With regard to TIIC's select Head Office Non-operational departments viz.,
Human Resources, Estate, Funds & Resources and BCL (GST Matters),
the transactions will have to be audited by external auditors, on
concurrent basis. Further, there are operational departments like
Projects, Loan Monitoring & Rehabilitation / Recovery & Subsidy
Departments which are also vital departments of Business & will also
need to be audited.
The objective and scope of the Concurrent Audit to be undertaken in the
above centres / branches are as under:
A.       Objective of Concurrent Audit
The main objectives of the concurrent audit are as follows:
i.         To supplement the efforts of the Corporation in carrying out
           simultaneous internal checks.
ii.        To reduce the interval between transactions and its independent
           verification.
iii.       To verify whether the system and procedures has been properly
           complied with and implemented in the Corporation.
iv.        To perform substantive checking of various areas of the TIIC's
           operations and to make rectification of the deficiencies in the
           earliest possible time.
v.         To detect and arrest revenue leakage, immediately.
vi.        To bring an ongoing improvement in the standard of internal
           controls and processes by identifying areas of weaknesses &
           deficiencies and energizing the process of rectifications.
vii.       To give advisory opinion in the areas of operations of the
           Corporation, as and when it is necessary.




                                                                 RfP for Concurrent Audit - Page 8 of 32
       The Tamilnadu Industrial Investment Corporation Limited
        No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


viii.  Verifying whether sanctions for advances and disbursement thereof
       is obtained from competent authority.
ix.    Scrutinizing the completeness of documents submitted for availing
       advances and other facilities.
x.     Ensuring compliance of laid down systems, procedures and
       policies.
xi.    Examining books of accounts, records and / or registers to ensure
       that they are maintained in accordance with the prescribed
       systems / reconciled with general ledger.
xii.   Physical checking of stocks financed under working capital scheme
       at relevant places.
xiii. Detection and arresting of leakage of income, if any.
xiv. To follow up with authorities to ensure timely rectification of
       irregularities reported with regard to the operations of the branch
       and rectified on the spot / during audit period itself.
xv.    Verify prompt, timely and regular submission of the periodical and
       statutory returns.
xvi. Any violation of procedure is brought to light.
xvii. Reporting any irregularity in working which may result in financial
       or other loss to the Corporation.
xviii. Feedback on regulatory compliances.
xix. Any other areas on the operations of the Corporation which are
       vital, in nature.
B.       Scope for all Term Loans / Bill Finance
i.         Whether the transactions or decisions are within the policy
           parameters laid down by the Corporation.
ii.        Sanction and Disbursement of loans & advances are within the
           policy parameters laid down by the Corporation. All the loan
           disbursements are to be checked / verified by the concurrent
           auditors before actual disbursements and all the disbursement
           notes need to be signed by the concurrent auditors.
iii.       Verify whether pre-sanction/pre-disbursement/post-disbursement
           visits are undertaken and reports are available on record.
iv.        Sanctions / Disbursements are within the delegated authority.
v.         Sanctions / Disbursements do not violate the instructions or policy
           prescriptions of RBI / SIDBI / other regulators.
vi.        Compliance to RBI guidelines relating to defaulters list / caution
           advice / CIBIL list / fraudulent borrowers list, KYC / AML, etc. is
           done satisfactorily.
vii.       DoP (Delegation of Power) has been exercised properly and Post
           Sanction Reporting, wherever applicable, is sent to Post Sanction
           Reporting Authority.



                                                                 RfP for Concurrent Audit - Page 9 of 32
    The Tamilnadu Industrial Investment Corporation Limited
     No. 692, Anna Salai, Nandanam, Chennai ­ 600 035







viii.  Verify whether Legal clearance certificate has been issued by the
       Legal Officer.
ix.    Pre-disbursement conditions are duly complied with; deviations
       made, if any, are within the guidelines issued, from time to time.
x.     Verify the end use of term loan disbursed by the Branch for the
       purpose it is meant for (based on documents and inspection
       reports of Branch officials).
xi.    Whether charge has been created over securities offered.
xii.   a) Physically verify the assets in respect of all disbursed cases.
       b) Undertake inspection of units on a sample basis to cover 1
       performing unit, 1 NPA unit and 1 unit with loan above Rs.1.00
       crore per month or such number of units as may be reasonably
       prescribed by TIIC then and there.
xiii. Whether in all cases, where the statements/ documents (stock
       statement, project completion report, final list of machinery,
       Acknowledgment of Debt, Annual report, etc.) are not received,
       even after a reasonable time, prompt action is taken by the branch
       to get the same.
xiv. To ensure that all assets hypothecated and mortgaged to the
       Corporation are adequately insured as per the extant guidelines of
       the Corporation and are in the joint names / with Bank clause and
       the policies are renewed on timely basis.
xv.    Verify whether there is any mis-utilisation of the loans and whether
       there are instances indicative of diversion of funds.
xvi. Verify whether there are any borrowal accounts (other than those
       reported by the branch) which are showing symptoms of sickness
       and can be classified as NPAs, if so, ascertain the reasons thereof
       and analyse the steps taken by the branch in the matter.
xvii. Verify whether the classifications of loan assets of the Branch have
       been done properly and income recognition norms have been
       followed up, as per the Corporation's guidelines and procedure/
       RBI norms by the respective branch.
xviii. Verify whether subsidy claims are as per the respective scheme
       and lodged timely with Govt. authorities by the Branch through
       Head Office.
xix. Verify whether claims submitted by Branch to CGTMSE are in
       time.
xx.    Verify whether guarantee fee for coverage under CGTMSE are
       collected and deposited with Credit Guarantee Trust Fund.
xxi. Verify the credit ratings and submission of a certificate in writing
       that the ratings are found to be correct. The discrepancies, if any,
       should be brought to the notice of the Corporation.




                                                              RfP for Concurrent Audit - Page 10 of 32
       The Tamilnadu Industrial Investment Corporation Limited
        No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


xxii. Verify the updation of CIBIL data and report the status in the
        monthly audit report.
xxiii. Verify the details of flow of applications, time taken for appraisal of
        Proposals, pending applications, etc. with Project Department of
        the BO concerned and report the status in the monthly audit
        report.
xxiv. Verify whether assets have been verified by the BO within 30 days
        from the date of classification of account as NPA.
xxv. Verify the proposals covered under any other Special Scheme of the
        Government / other Agencies and ensure whether the requisite
        documents prescribed for the purpose have been obtained and kept
        on record.
xxvi. Whether GST has been correctly collected on various incomes like
        investigation fees, upfront fee, etc., at applicable rates?
xxvii. Whether GST has been correctly paid on various expenditures like
        Legal Fees, Valuation Fees, etc., at applicable rates?
xxviii. Whether details of GST collected / paid has been sent to H.O. every
        month as per the prescribed formats?
C.       Scope for Working Capital Cases
i.         To ensure that margin on current assets; Rate of Interest &
           Drawing Power is considered / fixed as per the terms of sanction.
ii.        To ensure that the loans have not been made operational beyond
           the validity period, without approval of the competent authority for
           extension of the validity period.
iii.       To ensure that the periodic visits to the borrower units have been
           undertaken as per the Scheme guidelines. The auditor may also
           undertake some sample visits along with BO officials on random
           basis and / or on the basis of criticality of the account.
iv.        To ensure that the monthly stock statement from the borrower is
           obtained on time and filed.
v.         To scrutinize the monthly stock statements to ensure correct
           valuation to match the loan outstanding.
vi.        To ensure that the inventories as mentioned in the Stock statement
           furnished by borrowers are correct and as per the books of
           borrower.
vii.       To ensure that the CA certified book debt statements from the
           borrowers are obtained on half-yearly basis.
viii.      To ensure that stocks are adequately insured as per the extant
           guidelines of the Corporation and are in the joint names / with
           Bank clause and the policies are renewed on timely basis.




                                                                 RfP for Concurrent Audit - Page 11 of 32
       The Tamilnadu Industrial Investment Corporation Limited
        No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


ix.        To ensure that financial statements are obtained, wherever
           applicable and indicate the observations on the general business
           operations / profitability, etc.
x.         To ensure that stock audit is undertaken, wherever applicable and
           to ensure that the compliance of stock audit observations are met.
xi.        To check the correctness of interest / penal interest.
xii.       To examine the overdue accounts closely (in terms of operations in
           the account, Stock & Book Debt statement, Credit Summation,
           Cheque Bouncing, etc.).
xiii.      To ensure compliance of extant guidelines, in case of multiple
           current accounts and / or multiple banking arrangement.
D.       Additional Scope for Bill Finance Scheme Cases
i.         To verify discounting of bills / retirement of bills, on daily basis.
ii.        To ensure that the visits to the vendors units have been
           undertaken as per the extant guidelines of the Corporation. The
           auditor may also undertake some sample visits along with BO
           officials on random basis and / or on the basis of criticality of the
           transactions.
iii.       To verify, due date-wise, Live Bills under Bill Finance Scheme.
iv.        To undertake visit to purchaser companies to verify the invoices
           under BFS on sample basis if necessary.
v.         Safe custody verification as per extant guidelines.
E.       Scope for H.O. Departments
i.         Maintenance of files, registers and other records.
ii.        System of keeping old records and their easy retrieval.
iii.       Destruction of old records as per extant guidelines.
iv.        Approval of the bills on various expenditures incurred as per DoP.
v.         Adequate coverage of Insurance on various assets and its validity.
vi.        Entering into AMC for various assets as per norms.
vii.       Claiming Refinance from SIDBI by furnishing necessary details as
           per their requirement.
viii.      Mobilisation of Fixed Deposits is as per the extant guidelines.
ix.        Monitoring of transfer of funds from & to branches.
x.         Investment of surplus funds at H.O., if any to avoid loss of income.
xi.        Compliance of the observations of AG Audit / Statutory Audit /
           SIDBI Inspection without delay.
xii.       Repayment of bank loans / FDs / Bonds on due dates.
xiii.      Provisioning of NPAs as per RBI guidelines.
xiv.       Payment of Salary, bonus and other staff related payments.
xv.        Monitoring of the expenditure budget vis-a-vis actual every month.
xvi.       Filing of TDS and other returns before the due dates.



                                                                 RfP for Concurrent Audit - Page 12 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


xvii.   Collection of GST data of the previous month from all BO / FO on
        or before the 5th of every succeeding month through e-mail for
        consolidation work.
xviii. After draft return filing, Payment of GST amount on or before 20th
        of every succeeding month through Funds & Resources department
        by way of RTGS at our Indian Bank.
xix. Reconciliation of Annual Accounts with GST returns at the end of
        year and filing of annual return.
xx.     Arrangement of GST audit for the year on completion of that
        financial year.
xxi. Scrutinizing the Relaxation notes regarding Special / General
        Conditions, Relaxation of Security, Change of Supplier, Direct
        payments to Supplier, CIBIL score relaxation, Age relaxation, 10%
        overdue relaxation, etc.
xxii. Whether undrawn balances were reviewed at the each month end.
xxiii. Monitoring the pendency of petitions forwarded through Hon'ble
        CM's Cell, Amma Call centre & Govt. of India Public Grievance
        Portal and others.
xxiv. Scrutinizing the OTS Proposal received from the branches.
xxv. Monitoring of Slippage of Units.
xxvi. Analysis of Loans Portfolio.
xxvii. Monitoring of BFS loans, Joint Finance cases, etc., periodically.
xxviii. Checking the correctness of Change in Management /
        Constitution, Reschedulement, TLSP Clearances, Upset Price
        fixation, Substitution of Collateral Security.
xxix. Whether subsidy claims made with the Government is as per
        Government policy and claims are made in time.
xxx. Subsidy reimbursement received from Government is properly
        appropriated and accounted to the respective units.
xxxi. Wherever subsidies disbursed but recovered from the units on
        account of ineligibility has been surrendered to the Government.
   The above areas of operations are illustrative and not exhaustive.
3.2. The CA Firm will have to submit the following reports to the
     Management:
   (i)   Monthly reports as per the format prescribed by TIIC, from time
         to time, covering Branch's/HO Departments day-to-day
         operations including its core functions such as credit appraisal,
         pre-sanction and post-sanction supervision mainly under Term
         Loan, Working Capital and other operations, compliance to the
         terms and conditions of sanction, post disbursement,
         supervision, documentation, review/renewal of limits, bills




                                                             RfP for Concurrent Audit - Page 13 of 32
    The Tamilnadu Industrial Investment Corporation Limited
     No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


          finance, KYC norms, monitoring of business risks and compliance
          of Delegation of Powers etc.
    (ii) Monthly reports covering comments on adherence to regulatory,
          internal policy, procedure, guidelines, compliance of Delegation of
          Powers and areas of audit as indicated at para 3.1.
    (iii) Any other related reports as may be required by TIIC from time to
          time.
    (iv) The CA firm / LLP / Company shall be accountable, on its part,
          for wrongly verifying any document or auditing disbursement
          notes or such other important documents, based on which the
          Corporation can / will take appropriate decisions.
 The above reports with regard to operations mentioned above relating to
 the respective Branch / HO Departments including area of credit
 dispensation and other day to day operations should be submitted in the
 following manner to the Branch / Regional Offices / HoDs concerned.
S. No.    Name of the Branch                    To whom reports to be submitted
   1     Chennai                             Branch Manager of the concerned
   2     Tambaram                            Branch, Regional Manager of the
   3     Tiruvallur                          Concerned Branch, and HoD of Internal
   4     Hosur                               Audit Department at Head Office.
   5     Coimbatore
   6     Kurichi
   7     Tirupur
   8     Erode
   9     Nagercoil
  10     Head Office, Chennai                HoD of the respective Department and
                                             HoD of Internal Audit Department at
                                             Head Office.
Note: Copy of the report should be made available in soft copy and hard
copy forms within one week of the reporting period for which the report
pertains.
 A detailed checklist and other operating guidelines will be provided to the
 concurrent auditors. Necessary training / consultation required would be
 provided to them for enhancing the quality of the audit. They would be
 made aware of the guidelines and circulars issued subsequent to
 commencement of assignment and having impact on the concurrent
 audit, to keep them abreast of the changes in the operational and
 regulatory guidelines.
 TIIC will prescribe structured formats for the audit reports and also
 stipulate the time limits for submission of the reports. The audit formats



                                                              RfP for Concurrent Audit - Page 14 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


would be reviewed on annual basis. The firm / LLP / Company should
strictly adhere to the format and the time limit. TIIC may prescribe
different periodicity for different reports of the same branch.
3.3. The selected Chartered Accountant Firms /LLPs / Companies would
     initially be assigned the contract for a period of one year. The
     Contract can be renewed for two more years at the discretion of TIIC
     with increase in professional fee not more than 10% annually,
     after one year provided performance is found to be satisfactory on
     review. The proposed assignment would be subject to periodical
     review at the discretion of TIIC and is liable to be terminated at any
     time, if not found satisfactory, by giving short notice.
4. Selection process for the Branches / HO Departments
The Proposals will be assessed on the following Selection process:-
Technical Evaluation
a) The Applicant is required to submit the details of its proposal in a
   sealed envelope. The envelope should be superscribed "For Technical
   Evaluation" for said Concurrent Audits and should contain detailed
   statement giving the various technical particulars of the proposal
   covering aspects of the Applicant like name and location, year of
   establishment, names of its partners, staff, their qualification /
   experience, registration number of the firm / LLP / company, details
   of ICAI membership / Certificate of Practice details, methodology
   proposed and all other such relevant particulars in the format given in
   Annexure I.
b) A pre-evaluation meeting would be held to clarify on points, if any, if
   desired by the intending applicants.
c) After the expiry of last date for submission of proposal / application,
   the envelope containing the compliance on the "Technical Evaluation"
   would be opened in respect of all the applicants to verify the
   compliance of the applicants with the prescribed Technical Evaluation
   requirements.
d) The Technical Evaluation of proposal / Application would be carried
   out by an In-house Committee constituted by TIIC at Head Office,
   Chennai. The list of technically qualified applicants would be short
   listed.
Technical Evaluation Procedure of the applicants for Branch / HO
Departments Operations
The technical capabilities of the applicants with regard to Concurrent
audit operations of the branch offices / HO Departments would be
evaluated based on the following criteria and weightage:



                                                             RfP for Concurrent Audit - Page 15 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


Eligibility Criteria
While selecting the CA Firms to carry out Concurrent Audit in the
branches and Head Office Departments of the Corporation, preference
will be given to such firms satisfying the following criteria:
Sl. No.                               Criteria
   i.    Experience ­ Minimum 3 years of concurrent audit
         experience in Financial Institutions / Public Sector Banks,
         mainly in the area of credit dispensation (with documentary
         proof).
   ii.   It should be a Partnership firm / LLP / company of
         Chartered Accountants where partners / directors are CAs
         and should have valid registration Certificate of Practice from
         ICAI (proof of registration to be furnished).
   iii.  CA firm / LLP / company should have suitable
         Infrastructural facilities, including office set up, adequate
         manpower, which are specialised in the area of audit of
         branch operations, mainly in the area of credit dispensation
         and other day-to-day operations of the Corporation.
         Competence and qualification of key professional staff, which
         shall carry out the assignment in a time bound manner,
         Particulars about the firm / LLP / company, including
         details of partners/directors, their qualifications and
         experience to be furnished.
   iv.   CA firm / LLP / company should have regular set-up, either
         head office or full-fledged branch offices, at respective
         locations (locally) of TIIC Head Office / branches. If audit
         firms satisfying this criteria is not available in Local centres,
         relaxation will be done at the discretion of the Corporation.
    v.   CA firm / LLP / company should be willing to accept /
         undertake additional assignments, if any, required by the
         Corporation.
Without compliances of the above mentioned pre-requisites, the CA
Firms / LLPs / Companies will not be eligible to apply.
Rating Chart
The CA firms / LLPs / Companies would be ranked in the order of merit,
keeping in view of the past experience, reputation, infrastructure, etc.,
subject to satisfying the minimum eligibility criteria prescribed, as
indicated below in the table.




                                                             RfP for Concurrent Audit - Page 16 of 32
         The Tamilnadu Industrial Investment Corporation Limited
          No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                           Maximum
S.
                                         Criteria                                           Marks
No.
                                                                                          (Weightage)
1     · Chartered Accountant firm / LLP / company with year of
        establishment
      · Knowledge and experience in carrying out audit of
        Branch Office(s) operations mainly in the area of credit
                                                                                                 50
        dispensation and other day to day operations.
      Experience ­ Upto 5 years ­ 0 Marks
                    ­ Above 5 years and upto 10 years ­ 30 Marks
                    ­ More than 10 years ­ 50 Marks
2     Be a Partnership firm / LLP / company of Chartered
      Accountants with
                                                                                                 10
             ­ More than 3 CA partners / directors ­ 10 Marks
             ­ 3 CA Partners / Directors or less ­ 5 Marks
3     Previous track record of carrying out such audits in other
      Financial Institutions / Public Sector Banks mainly in the
      area of credit dispensation and other day to day
      operations of the Corporation (with documentary proof)
                                                                                                 10
             ­ More than 5 years ­ 10 Marks
             ­ Five years and below but not less than
               three years ­ 5 marks
             ­ Less than 3 years ­ 0 Marks (Not eligible)
4     Whether the firm / LLP / company is empanelled with RBI                                    10
5     Availability of suitable Infrastructural facilities including
      office set up, adequate manpower, who are specialized in
      the area of audit of Branch Operations mainly in the area
      of credit dispensation and other day to day operations of
      the Corporation. Competence and qualification of key                                       10
      professional staff, who shall carry out the assignment in a
      time bound manner. Particulars about the firm / LLP /
      company including details of partners / directors, their
      qualifications and experience may also be furnished.
6     Regular set-up at respective locations (locally) of TIIC
      HO/branches
                                                                                                 10
             ­ having Head Office locally ­ 10 Marks
             ­ having Branch Office locally ­ 5 Marks
                            Maximum Score                                                       100
      Preference would be given to the firms / LLPs / companies where the
      partners / directors themselves were ex-bankers with requisite
      experience and exposure and the firms having qualified Information
      System Auditor (CISA/DISA) with necessary exposure of systems audit.



                                                                   RfP for Concurrent Audit - Page 17 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


The selected CA Firms / LLPs / Companies would be required to comply
with the following requirements:
 ·     The firm / LLP / company shall ensure that the audit firm / LLP /
       company or any sister / associate concern, is not conducting the
       statutory audit of the Corporation or any of its branches.
 ·     The firm / LLP / company shall execute undertaking of fidelity and
       secrecy on its letterhead in the format prescribed by the Corporation.
 ·     The firm / LLP / company shall ensure that the audit is carried out
       in a professional manner and in case of any misconduct &
       negligence, the Corporation is free to report the matter to ICAI.
 ·     The firm / LLP / company shall ensure that it will not sub-contract
       the audit work assigned to any outside firm / LLP / company or
       other persons, even though such persons are qualified Chartered
       Accountants.
 ·     The CA firm / LLP / company would do the audit work themselves
       and would depute experienced employees and further ensure
       continuity of the member(s) of the audit team for smooth audit
       functions at BO/HO. The team shall visit the branch/HO on daily
       basis. The partner(s) / director(s) shall visit the branch/HO
       themselves at least once in 15 days or as and when required by the
       Corporation.
 ·     A declaration shall be furnished by the firm / LLP / company that
       credit facilities availed by the firm or LLP or company or partners of
       the firm / LLP or directors of company or firms or LLPs or companies
       in which they are partners or directors, including any facility availed
       by a third party for which the firm or its partners or directors are
       guarantor(s) have not turned or are existing as non-performing
       assets, as per the prudential norms of RBI. In case the declaration is
       found incorrect, the assignment would get terminated; besides, the
       firm being liable for any action under ICAI Rules.
 ·     Any other terms and conditions of the assignment would be decided
       by the Corporation, on a case-to-case basis, with the approval of the
       Managing Director of the Corporation.
Other applicable conditions relating to Concurrent Audit
 ·     As a matter of policy, TIIC will engage the services of a firm / LLP /
       company for carrying out Concurrent Audit of one BO only or Head
       Office at a time. Accordingly, in case the CA firm / LLP / company
       has been already engaged by TIIC in any of its branches or HO, such
       CA firm / LLP / company will not be eligible for another assignment.
 ·     After completion of specific period (continuous three years i.e. 1 year
       + 2 years), cooling period of one year would be observed for a firm /



                                                               RfP for Concurrent Audit - Page 18 of 32
    The Tamilnadu Industrial Investment Corporation Limited
     No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


      LLP / company to become eligible for fresh appointment in the same
      BO/HO. This will be purely at the discretion of the Corporation and
      no rights whatsoever will accrue to the firm / LLP / company for
      such appointment.
·     The concurrent auditor should adhere to the audit coverage strictly
      as per the scope as may be decided by the Corporation, from time to
      time.
·     The concurrent auditors should not undertake any other activities /
      assignment on behalf of the branch or HO, without obtaining the
      clearance from Internal Audit Department, in writing.
·     The concurrent auditors would not give any rating or grade to the
      Branch except when desired by TIIC.
·     Necessary arrangements would be made for providing space,
      workstation and access to systems (viewing rights only) to the
      concurrent auditors for ensuring smooth conduct of the audit. This
      would be the responsibility of the Corporation. However, Branch In-
      charge / HoD, Internal Audit Department will take responsibility for
      arrangement of the same.
·     The Concurrent Auditors will be granted read only access to systems
      at Branch Office / Head Office.
·     The firm / LLP / company should continue to satisfy the eligibility
      norm for appointment of Chartered Accountants as Concurrent
      Auditors as prescribed by the Corporation, from time to time.
·     The assignment would be subject to periodical review at the
      discretion of the Corporation. The Corporation reserves the right to
      terminate the assignment for Concurrent Audit at any time, without
      assigning any reasons whatsoever. In such an event, the firm shall
      take such steps, as are necessary to bring the services to an end in a
      cost effective, timely and orderly manner.
·     Format of Concurrent Audit Report to be furnished by the external
      auditors will be given. Necessary training / consultation required
      would be provided to the Concurrent Auditor for enhancing the
      quality of the audit. They would be made aware of the guidelines and
      circulars issued subsequent to commencement of assignment and
      having impact on the concurrent audit, to keep them abreast of the
      changes in the operational and regulatory guidelines by the BO /HO
      officials.
·     The Internal Audit Department will stipulate the time limits for
      submission of the reports as per the prescribed format.
·     The audit report format would be reviewed usually on an annual
      basis or in case of need at the discretion of TIIC by Internal Audit




                                                              RfP for Concurrent Audit - Page 19 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


       Department. The firms / LLPs / companies should strictly adhere to
       the report format and the time limit.
 ·     The Concurrent Auditors shall seek any clarification / guidance from
       Internal Audit Department for smooth conduct of the Concurrent
       Audit.
 ·     The concurrent auditor shall not be allowed to carry any mass
       storage device such as pen drive/flash drive or any lap top inside the
       branch / Head office premises as these devices will not be required
       for the job. Concurrent auditors shall be provided with computer
       system with disabled USB ports by the concerned branches / Head
       office.
 ·     The concurrent auditors are required to plan the audit such that it
       results in gradual shortening of the interval between a transaction
       and its examination by an independent person. The concurrent
       auditor shall perform substantive checking in key areas and
       emphasis should be on `on the spot' rectification of deficiencies. The
       concurrent auditor shall daily go through all the vouchers and books
       of the branch for the previous day and identify areas to be
       scrutinised in detail.
 ·     The Concurrent Auditor should maintain and keep back up papers
       in support of observations made.
 ·     The Concurrent Auditor shall observe the Do's & Don'ts given in
       Annexure in order to have proper relationship with Auditee Branch /
       Department.
5. Fixed Fee Structure
The fee structure / inclusion / exclusion of the BOs / Head Office under
this mechanism are based on the outstanding portfolio of the BO. The
award of contract to CA firm / LLP / Company to undertake concurrent
audit will be as per fee structure determined by the Corporation from
time to time. The present fee structure, based on the outstanding
portfolio size, is indicated below:
  Outstanding portfolio / Volume of       Fee payable per month
               portfolio                (excluding applicable GST)
 Above Rs.50 crores to Rs.100 crores  Rs.35,000/-
 Above Rs.100 crores to Rs.150 crores Rs.45,000/-
 Above Rs.150 crores                  Rs.60,000/-
 For Head Office                      Rs.45,000/-
 Note: Maximum 10% enhancement in remuneration may be
 considered at the discretion of the Corporation, if the contract is
 renewed, after one year, provided the performance is found
 satisfactory during review.



                                                               RfP for Concurrent Audit - Page 20 of 32
       The Tamilnadu Industrial Investment Corporation Limited
        No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


No out of pocket expenses or traveling allowance / halting allowance
would be paid to the concurrent auditors for carrying out the audit.
However, the GST and applicable taxes would be paid as applicable from
time to time in addition to the basic fees. The payment to the concurrent
auditors would be subject to deduction of tax at source as per both the
Income Tax Act and Goods and Services Act at appropriate rates.
The Outstanding Portfolio of the BOs are given at Table ­ I vide Page
No. 3.
6. Guidelines & Instructions
i.       TIIC will endeavour to make available all relevant information in the
         RfP. In case of need of any further information or clarification during
         the application period, the applicant must contact only the Contact
         Officers named above. On no account should the Applicants
         communicate directly with any other TIIC personnel. Failure to
         comply with this requirement may result in the disqualification of
         the applicant from this competition.
ii.      Government Tax
Applicants are responsible for establishing the status of the Services for
the purpose of any government tax including GST, etc. to Government.
iii.     Alterations to Application
Any manuscript or other alteration to the proposal / Application must be
countersigned and dated by the person submitting the proposal /
application.
iv.      Letters and Declaration to Accompany Applications
The proposal / Application must be accompanied by a letter on letter
head of the Firm / LLP / Company showing the full registered name(s),
registered office address of the applicant. It should be signed by a person
of suitable authority to commit the applicant to a binding contract.
v.       Packaging and Delivery of Applications
Applications must be delivered in a double sealed envelope clearly labeled
with the following:
                1.       Project Title
                2.       Application Due Date
                3.       Applicant's Name
TIIC accepts no responsibility for the premature opening of any
incorrectly marked Applications.




                                                                 RfP for Concurrent Audit - Page 21 of 32
      The Tamilnadu Industrial Investment Corporation Limited
       No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


Applications must be received at Internal Audit Department, The
Tamilnadu Industrial Investment Corporation Limited, No.692, Anna
Salai, Nandanam, Chennai ­ 600 035, for the attention of The General
Manager by 5.00 PM on the due date. Late applications will not be
accepted under any circumstance and will be returned unopened. No
special pleadings will be accepted. Faxed or e-mailed applications will
not be accepted.
vi.     Conflict of Interest
Applicants must disclose in their application details of any
circumstances, including personal, financial and business activities that
will, or might, give rise to a conflict of interest; this includes any sub-
contractor, if they were awarded this contract. Where applicants identify
any potential conflicts they should state how they intend to avoid such
conflicts. TIIC reserves the right to reject any application which, in TIIC's
opinion, gives rise or could potentially give rise to a conflict of interest.
vii. Disclosures
The applicant must disclose:
     a. If they are OR have been the subject of any proceedings or other
arrangements relating to bankruptcy, insolvency or the financial
standing of the applicant including but not limited to the appointment of
any officer such as a receiver in relation to the applicant's personal or
business matters or an arrangement with creditors or of any other
similar proceedings.
     b. If they are OR any of the applicant's staff have been convicted of,
or are the subject of any proceedings, relating to:
          ·    a criminal offence or other offence, a serious offence involving
               the activities of a criminal organisation or found by any
               regulator or professional body to have committed professional
               misconduct.
          ·    corruption including the offer or receipt of any inducement of
               any kind in relation to obtaining any contract, with TIIC, or any
               contracting authority.
          ·    failure to fulfill any obligations in any jurisdiction relating to the
               payment of taxes or social security contributions.
Disclosure extends to any entity in the same group of the applicant
(including but not limited to parent subsidiary and sister companies, and
companies with common shareholders whether direct or indirect and
parties with whom the applicant is associated in respect of this
application / proposal).




                                                                RfP for Concurrent Audit - Page 22 of 32
      The Tamilnadu Industrial Investment Corporation Limited
       No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


If an applicant or related entity or any individual discloses details of any
previous misconduct or complaint, TIIC will seek an explanation and
background details from them. At the sole discretion of TIIC and
assessment as to whether the Applicant will be allowed to submit a
application, decision will then be made by TIIC.
viii. Indemnity
The successful applicant shall exercise reasonable skill, care and
diligence in the performance of the assignment and indemnify and keep
TIIC indemnified in respect of any loss, damage or claim howsoever /
whatsoever arising out of or related to breach of contract, statutory duty
or negligence by the firm / LLP / Company or its staff, agents or sub-
contractors in relation to the performance or otherwise of the Services to
be provided under this Contract.
ix.     Assigning to Others
The successful applicant shall not, without the prior written consent of
TIIC, assign or transfer or cause to be assigned or transferred, whether
actually or as the result of takeover, merger or other change of identity or
character of the CAs, any of its rights or obligations under the Contract
or any part, share or interest therein. Upon any such assignment or
transfer, this engagement may forthwith be terminated by TIIC.
x.      Termination
TIIC may, at its sole discretion and at any time terminate the Contract
and inform the CA Firm / LLP / Company of TIIC's decision by written
instruction to that effect. In the event of the Contract being so
terminated, the firm / LLP / Company shall take such steps as are
necessary to bring the Services to an end, (including terminating any
sub-contracts placed by the firm / LLP / Company) in a cost effective,
timely and orderly manner. No further correspondence will be
entertained in this regard.

                                                 @@@@@




                                                                RfP for Concurrent Audit - Page 23 of 32
           The Tamilnadu Industrial Investment Corporation Limited
            No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                            Annexure I
           Technical Evaluation for Concurrent Audit of Branch Operations
      A)     Audit Firm / LLP / Company Details:
S. No.                       Requirements                  Compliance                            Remarks
   1         Name of the Chartered Accountant Firm /         Yes/No
             LLP / Company with Date of establishment
  2          Knowledge and experience in carrying out        Yes/No
             audit of Branch Operations mainly in the
             area of credit dispensation and other day to
             day operations.
  3          Be a Partnership firm / LLP / Company of        Yes/No
             Chartered Accountants of which 2 partners
             or directors should be Practicing Chartered
             Accountants. Details of each partner /
             director including experience, qualification
             etc. and their Registration number with CA
             Institute (furnish a detailed list of all the
             partners / directors).
  4          Minimum three years of previous track           Yes/No
             record of carrying out such audits in other
             Financial Institutions / Public Sector /
             Private Sector Banks mainly in the area of
             credit dispensation and other day to day
             operations of the Financial Institution /
             bank (furnish documentary proof).
  5          Valid registration / Certificate of Practice    Yes/No
             from      the    Institute    of   Chartered
             Accountants of India for the firm/ company
             / LLP (furnish documentary proof).
  6          Whether the firm / LLP / Company is             Yes/No
             empanelled        with      RBI      (furnish
             documentary proof)
  7          Availability of suitable infrastructural        Yes/No
             facilities including office set up, adequate
             manpower who are specialized in the area
             of audit of Branch Operations mainly in the
             area of credit dispensation and other day to
             day operations of the Financial Institution
             / bank. Competence and qualification of
             key professional staff who shall carry out
             the assignment in a time bound manner



                                                                     RfP for Concurrent Audit - Page 24 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


       (furnish a detailed list of all the skilled /
       semi skilled employees / staff).
8      Regular set-up, either Head Office or full-                       Yes/No
       fledged Branch Offices at respective
       locations (locally) of TIIC branches (furnish
       the details regarding branch offices, if
       any).
9      The firm / LLP / Company shall ensure                             Yes/No
       that the audit firm / LLP / Company or
       any sister / associate concern is not
       conducting the statutory audit of TIIC.
10     The firm / LLP / Company shall agree to                           Yes/No
       execute undertaking of fidelity and secrecy,
       Declaration of True Information, Letter of
       Acceptance and Declaration of Non-
       disqualification on its letterhead in the
       format (as enclosed) prescribed by the
       Corporation, if the contract assigned.
11     The firm / LLP / Company shall ensure                             Yes/No
       that the audit be carried out in a
       professional manner and in case of any
       misconduct & negligence, the Corporation
       is free to report the matter to ICAI / RBI
       under the guidelines from time to time.
12     The firm / LLP / Company shall ensure                             Yes/No
       that it will not sub-contract the audit work
       assigned to any outside firm / LLP /
       Company or other persons even though
       such persons are qualified Chartered
       Accountants.
13     A declaration to be furnished by the firm /                       Yes/No
       LLP / Company that credit facilities availed
       by the firm / LLP or its partners or
       Company or its directors or firms or LLPs
       or companies in which they are partners or
       directors including any facility availed by a
       third party for which the firm / LLP or its
       partners or company or its directors are
       guarantor(s) have not turned or are existing
       as non-performing assets as per the
       prudential norms of RBI. In case the
       declaration     is   found    incorrect,  the









                                                               RfP for Concurrent Audit - Page 25 of 32
      The Tamilnadu Industrial Investment Corporation Limited
       No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


        assignment would get terminated besides
        the firm being liable for any action under
        ICAI / RBI guidelines.
14      The firm / LLP / Company must submit a                            Yes/No
        undertaking that the firm / LLP /
        Company does not have any professional
        relationship with any of the borrowers of
        TIIC nor will it in future accept professional
        relationship with any of the borrowers of
        TIIC during the period during which the
        firm / LLP / company acts as the
        concurrent auditor for TIIC.
 Note: All the relevant details & documentary evidences are to be
      furnished. The above is only a format. Information may be
      submitted in additional sheets.

 B)     Details of Audit of Branch Operations mainly in the area of
        credit dispensation done in banks / FIs
      1. Details of Statutory Branch Audits of various banks' branches /
         Financial Institutions
                                                                       Year of Audit / Period
                         Name of the Bank
                                                                             (From - To)
           S. No.          / Financial                   Branch
                                                                        [Data required Since
                           Institution
                                                                    establishment of your firm]


      2. Details of Concurrent Audits of various banks' branches /
         Financial Institutions
                                                                       Year of Audit / Period
                         Name of the Bank
                                                                             (From - To)
           S. No.          / Financial                   Branch
                                                                        [Data required Since
                           Institution
                                                                    establishment of your firm]


      3. Details of Statutory Central Audits of various Banks / Financial
         Institutions
                                                                       Year of Audit / Period
                         Name of the Bank
                                                                             (From - To)
           S. No.          / Financial                   Branch
                                                                        [Data required Since
                           Institution
                                                                    establishment of your firm]




                                                                RfP for Concurrent Audit - Page 26 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035




                                                                                   Annexure II

                                 Declaration
      (to be furnished in the letter head of the firm / LLP / Company)



     We hereby declare that the information submitted above is complete

in al l respects and true to the best of our knowledge. We understand that

in case any discrepancy or inconsistency or incompleteness is found in

the information submitted by us, our application is liable to be rejected.




Date:                                                                 Authorised Signatory




                                                             RfP for Concurrent Audit - Page 27 of 32
   The Tamilnadu Industrial Investment Corporation Limited
    No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                  Annexure III

                   DECLARATION OF FIDELITY AND SECRECY
                         (on the letter head of CA firm)
     I, Managing partner/Director of _______________________________, Chartered
Accountants firm / LLP / company (firm name) duly authorised by the firm /
LLP / company (hereinafter referred to as "firm") on behalf of the firm, hereby
declare that the firm will faithfully, truly and to the best of our skill and ability
execute the duties required of the firm as Concurrent Auditor of The Tamilnadu
Industrial Investment Corporation Limited (TIIC) and which properly relates to
task entrusted to the firm by TIIC of conducting of concurrent Audit of
_______________, the Branch/HO of TIIC.
     I, on behalf of the firm, also undertake and declare that the assignment of
conducting Audit entrusted to the firm will be done only by appropriately
professionally qualified auditors employed by our firm and under any
circumstances, the firm shall not, except with the express written consent of
TIIC entrust the work to any other audit firm(s) on contract or on any other
basis.
     I, on behalf of the firm, further declare and undertake, that the firm will
not, except under legal compulsion or as a statutory obligation (under due
information to TIIC), either during or after completion of any transaction, project
or assignment entrusted to the firm, disclose to any person not legally entitled
thereto, any information relating to the affairs of TIIC or any information
disclosed / furnished by TIIC in connection with the assignment or the
information collected / obtained during the course of the assignment as
Concurrent Auditor of TIIC which shall include any copy, abstract, sample,
note, information/data held on systems or module thereof (confidential
information). I, on behalf of the firm, further undertake that our obligations
respecting disclosure and confidentiality shall continue to be binding even after
the completion of the assignment.
     I, on behalf of the firm, also declare and undertake that the firm shall not
commercially use or disclose any Confidential Information or any materials
derived there from to any other person or entity other than persons in the direct
employment who have a need to have access to and knowledge of the
Confidential Information solely for the Purpose authorized above. The firm shall
take appropriate measures prior to disclosure to such employees to assure
against unauthorized use or disclosure.
     I, on behalf of the firm, further undertake to disclose to TIIC in case, the
firm happens to be the auditors to the concerned borrower unit/ associate
concern, whose concurrent transaction/case is to be audited by the firm on
behalf of TIIC.
                                                                Signature & Seal
                                                         Registration No. of ICAI
Place:
Date:



                                                             RfP for Concurrent Audit - Page 28 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                    Annexure IV

                            (Proforma Letter of acceptance to
                            be obtained on firm's Letter head)



                                                                               Date: __/__/____
To

The General Manager,
Internal Audit Department,
The Tamilnadu Industrial Investment Corporation Ltd,
No. 692, Anna Salai, Nandanam,
Chennai ­ 600 035.



Dear Sir,

              Sub: Concurrent Audit of your _________ Branch/HO Depts

With reference to your letter No. TIIC/HO/IA/2018-19 dated __.__.____
on the subject matter, we do hereby convey our acceptance to undertake
Concurrent audit of your above mentioned branch / HO Departments on
the terms and conditions mentioned therein.

As desired by you, we send herewith the Declaration of Fidelity and
Secrecy and Declaration regarding non-disqualification etc., in the
enclosed proforma.



                                                                        Yours faithfully,



                                                                   (Chartered Accountants)
                                                                     Name of Signatory &
                                                                    Rubber Stamp of Firm

Encl: as above.




                                                               RfP for Concurrent Audit - Page 29 of 32
      The Tamilnadu Industrial Investment Corporation Limited
       No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                      Annexure V
                      Letter of confirmation regarding
             Non-disqualification of Audit firm / LLP / Company
                      (to be submitted on letter head)

To
The General Manager,
Internal Audit Department,
The Tamilnadu Industrial Investment Corporation Ltd,
No. 692, Anna Salai, Nandanam,
Chennai ­ 600 035.

Dear Sir,
               Sub: Concurrent Audit of your _______ Branch / HO ­ reg.

     With reference to your letter No. TIIC/HO/IA/2018-19 dated __.__.____
we confirm the following regarding our eligibility/qualification for
appointment as Concurrent Auditors:-

      i)       None of our partners / directors / shareholders is an officer /
               employee of your Corporation.
      ii)      None of our partners or Associates firms or sister concern or
               Branch office, is presently assigned with Statutory Audit of your
               Corporation.
      iii)     Our Firm / LLP / Company and our partners / directors /
               shareholders are not otherwise disqualified to accept the audit
               in terms of Section 141 of the Companies Act, 2013.
      iv)      We also confirm that we are full time practising Chartered
               Accountants and are not employed elsewhere.
      v)       We undertake not to subcontract the audit work assigned to us
               to any other third party or person / firm / LLP / company.
      vi)      We do/will not have any professional or commercial relationship
               with the borrowers of the branch/HO Departments which we
               are auditing.
      vii)     We also confirm that we will not give room for disqualification
               during the course of audit for any of the reasons mentioned
               above.
                                                                           Yours faithfully,


                                                                         Name of Signatory &
                                                                        Rubber Stamp of Firm




                                                                RfP for Concurrent Audit - Page 30 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


                                                                                    Annexure VI

              DO'S AND DON'TS FOR CONCURRENT AUDITORS

Do's

The Concurrent Auditors should

1.     Pre-inspection study of the branch / Head Office by going through
       the related reports and pre requisites documents.
2.     Prepare proper audit plan based on 1 above.
3.     To maintain utmost secrecy with regard to inspection program and
       its findings.
4.     Auditors to display team spirit and avoid misunderstandings /
       arguments in the presence of auditees.
5.     Inspection of the branch / Head office departments has to be
       commenced before commencement of business hours to verify the
       physical cash, security arrangement etc.
6.     To act in a normal friendly fashion and help to improve normal
       working of the branch / head office.
7.     Discuss his/her findings with branch / HO department officials on
       daily basis and try to rectify the defects then and there itself.
8.     Give auditees a chance to express their opinion while discussing the
       issues. Getting proper explanation in a co-operative atmosphere will
       save precious time.
9.     In case of difference of opinion with auditee, the auditor should first
       discuss with the leader of his/her team. Further discussion with
       Regional Manager of concerned branch / HoD of concerned
       department, if required, may be made. Besides, discussion if
       required with the HoD, Internal Audit Department, Head Office can
       also be made for guidance / instruction.
10. If the inspecting officer comes across any information which causes
    him/her to suspect any element of fraud, gross negligence, gross
    incompetence or similar unfavorable actions or tendencies, he/she
    should report the matter immediately.
11. The members of the team should keep continuous dialogue with the
    leader of the team on important findings and be guided by his
    advice.




                                                               RfP for Concurrent Audit - Page 31 of 32
     The Tamilnadu Industrial Investment Corporation Limited
      No. 692, Anna Salai, Nandanam, Chennai ­ 600 035


12. Auditor should maintain a neat appearance and a courteous
    manner.



Don'ts

1.     Auditor need not act overly reserved or unfriendly in order to
       maintain his/her independence as an inspecting officer. A forbidding
       attitude on his/her part may well cause others to adopt the same
       attitude towards him/her. This can adversely affect the work
       entrusted to the inspecting officer.
2.     Auditor should not get involved in heated argument with the auditee.
3.     Auditor should not give orders to auditee and seek requirements
       from the officer assigned to assist him on a particular job. The
       concerned officer would issue the necessary orders to their staffs if
       he/she accepts inspector's suggestions and recommendations.
4.     Auditor should not delay the submission of audit report.
5.     Auditor should not discuss sensitive matters of the auditee with
       others.




                                                               RfP for Concurrent Audit - Page 32 of 32

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