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 The Tamilnadu Industrial Investment Corporation Limited, Chennai, Tamilnadu
 
 
 
 

The Tamilnadu Industrial Investment Corporation Limited, Chennai, Tamilnadu
October, 23rd 2021

THE TAMILNADU INDUSTRIAL INVESTMENT
CORPORATION LIMITED (TIIC)

MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035
Chennai-600035

REQUEST for PROPOSAL (RfP)
for

CONCURRENT AUDIT OF OPERATIONS OF TIIC
BRANCHES (24) AT VARIOUS LOCATIONS AND

AT HEAD OFFICE at CHENNAI
QCBS

(Quality cum Cost Based Selection)

RfP Ref No.TIIC/IA/2021-22/ dated 19.10.2021

Date of Release of RfP 19.10.2021

Pre-bid Meeting 01.11.2021

Last Date for Proposal Submission 22.11.2021

Date of Opening of Technical Proposal 23.11.2021 (R1 Region)
(EMD and Technical Proposal) 24.11.2021(R2 Region)

25.11.2021(R3 Region)

26.11.2021(R4 Region)

Tender Application Fee Rs.1000/- plus GST @18% by
Demand Draft in favour of “The
TIIC Limited, Chennai”
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Key Information on the RfP response submission:

S.No Particulars Time line
1 RfP Issuance date 19.10.2021
2 RfP Coordinator The Head of the Dept. of IA&ISO Dept.
Telephone 044-24331203 / 044-24306100
3 Address for proposal submission The Tamilnadu Industrial Investment
Corporation Ltd.,
Email id Head Office, 692, Anna Salai,
Nandanam, Chennai-600 035.
Note:
audit_tender@tiic.org
No bids shall be submitted via e-mail
/Fax and any bids submitted by e-mail
/Fax will not be accepted.

4 Last date of written request for 29.10.2021

Clarifications before pre-bid meeting

5 Reply to individual pre bid query 09.11.2021

6 Last date of submission of RfP response 11.00 a.m . on 22.11.2021

(closing date)

7 Opening of Eligibility cum Technical 11.00 a.m . on 23.11.2021 (R1 Region)

bid 11.00 a.m . on 24.11.2021(R2 Region)

11.00 a.m . on 25.11.2021(R3 Region)

11.00 a.m . on 26.11.2021(R4 Region)

8 Opening of Financial Bid The Financial proposal of only those who qualify
in Technical proposal will be opened. The date
for opening of the financial proposal would be
communicated separately only to those bidders
who are eligible and technically qualified.

10 Cost of Application INR Rs.1000/- + GST @ 18%

By way of Demand Draft favouring “The
Tamilnadu Industrial Investment Corporation
Ltd.”(TIIC Ltd), Chennai.

11 Earnest Money Deposit or EMD INR Rs.15000/- By way of Demand Draft
favouring “The Tamilnadu Industrial Investment
Corporation Ltd.”(TIIC Ltd), Chennai

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

12 Tender Inviting Authority The Head of the Dept. of IA & ISO Dept.
TIIC LTD., HEAD OFFICE, CHENNAI-35
13 Tender Accepting Authority
The Chairman & Managing Director,
TIIC LTD., HEAD OFFICE, CHENNAI-35

Definition of Terms used in the RfP:
Following terms are used in the document interchangeably to mean:

1. “Assignment/Job/Engagement” means the work to be performed by the selected bidder
pursuant to the contract.

2. “Corporation or TIIC” means The Tamilnadu Industrial Investment Corporation Ltd.
3. “Day” means business day
4. “ICAI” means Institute of Chartered Accountants of India
5. “Personnel/Resources” means professionals and support staff provided by the selected bidder.
6. “Proposal/Bid/Tender” means Response to the RfP document
7. “RBI” means Reserve Bank of India
8. “Recipient, Respondent,firms, Tenderer and Bidder” means interested and eligible applicants

responding to this RfP for Concurrent Audit.
9. “Successful/selected bidder” means the bidder selected as the successful bidder by TIIC in

accordance with this RfP who is also referred to as “Applicant / Concurrent Audit Firm”.
10. IAD Means Internal Audit Department, TIIC Ltd., Chennai.
11. CAG Means Comptroller and Auditor General.

Confidentiality:

This document is meant for the specific use by the Firm/person/s interested to participate in the
RfP process. This document in its entirety is subject to copy right laws. TIIC expects the Firms
or any person acting on behalf of the firms strictly adhere to the instructions given in the
document and maintain confidentiality of information. The Firms will be held responsible for
any misuse of information contained in the document, and are liable to be prosecuted by the TIIC
in the event that such a circumstance is brought to the notice of TIIC. By downloading the
document, the interested party is subject to the confidentiality clauses.

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Table of Contents

1 Introduction .................................................................................................................................... 7

2 Broad Scope of Services for the Concurrent Auditor......................................................... 11

2.1 Objective :........................................................................................................................ 11

2.2 Broad Scope of Work : ................................................................................................... 11

2.3 Requirements to be met by CA Firms........................................................................... 23

3 Qualification Criteria.................................................................................................................... 25

3.1a Eligibility Criteria:.......................................................................................................... 26

3.1b Restricted Eligibility/Ineligible condition ..................................................................... 27

3.1.1 Evaluation of Technical Proposal ................................................................................. 28

4 Language of the Proposal ............................................................................................................. 29

5 Availability of RFP Documents ................................................................................................... 29

6 Pre-Bid Meeting ........................................................................................................................... 29

7 Clarification on the RFP Document ............................................................................................. 29

8 Amendment of the RFP Document .............................................................................................. 29

9 Authorization of the Tender ......................................................................................................... 30

10 Submission of the Proposal in Two Cover System ...................................................................... 30

11 Earnest Money Deposit ................................................................................................................ 31

12 Validity of the Proposal................................................................................................................ 32

13 Opening and Evaluation of the Proposal ...................................................................................... 32

14 Price Offer .................................................................................................................................... 33

15 Evaluation of the Financial Proposal............................................................................................ 33

16 Special cases................................................................................................................................. 34

17 Award of Contract ........................................................................................................................ 34

18 Period of Contract ........................................................................................................................ 35

19 Security Deposit ........................................................................................................................... 36

20 Service level Agreement /Agreement........................................................................................... 36

21 Force Majeure .............................................................................................................................. 36

22 Project Deliverables, Timeline & Payment Terms....................................................................... 36

23 Penalty.......................................................................................................................................... 37

24 Termination of Contract ............................................................................................................... 37

25 General Terms & Conditions ...................................................................................................... 37

26 Other Conditions .......................................................................................................................... 41

27 Arbitration .................................................................................................................................... 42

28 Jurisdiction of the Court............................................................................................................... 42

29.1 Detailed Scope Of Work ............................................................................................11-21

29.2 Deliverables ..................................................................................................................... 36

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Annexure I - Technical Proposal Covering Letter ................................................................................ 44
Annexure II - Details of the Tender ...................................................................................................... 46
Annexure III – Annual Turnover Certificate ........................................................................................ 47
Annexure IV (a) - Format for Firm’s Technical Eligibility (Form A) .................................................. 48
Annexure IV (b) – Format for Technical Evaluation (Form B) ........................................................... 50
Annexure IV (c) – Format for Firms relevant experience (Form B)..................................................... 54
Annexure V – Undertaking ................................................................................................................... 55
Annexure VI (a) – Curriculum Vitae for Key Personnel ...................................................................... 57
Annexure VI (b) – Curriculum Vitae for Designated Team Leader/Audit staff ................................... 59
Annexure VII – Team composition and Tasks Assigned...................................................................... 60
Annexure VIII – Certificate (Not in black list) ................................................................................... 61
Annexure IX – Declaration (Conditions not tampered/modified) ....................................................... 62
Annexure X – Format for Clarification on Tender Document.............................................................. 63
Annexure XI – Financial Proposal........................................................................................................ 64
Annexure XII - Price Bid (Lumpsum) .................................................................................................. 65
Annexure XIII – Checklist of Documents ............................................................................................ 66
Annexure XIV(a) – Declaration............................................................................................................ 69
Annexure XIV(b) – Declaration of Fidility and Guarantee .................................................................. 75
Annexure XV – Proforma for letter of acceptance .............................................................................. 75
Annexure XVI – Letter of confirmation (Non-disqualification)........................................................... 75
Annexure XVII – Do’s and Dont’s ....................................................................................................... 75
Annexure XVIII – Format for Flash Report ......................................................................................... 76
Annexure XIX – Format for Unit Inspection Report ............................................................................ 77
Annexure XX – Format for Physical Verification Report on assets .................................................... 80
Annexure XXI – Format for Audit Report (Branches) .................................................................81-115
Annexure XXII – Format for Audit Report (Head Office) .........................................................116-122

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

IMPORTANT NOTICE

This tender procedure is governed by the Tamil Nadu Transparency in Tenders Act,
1998 read with Tamil Nadu Transparency in Tender Rules, 2000 as amended from
time to time. In case of any conflict between the terms and conditions in the tender
document, the Tamil Nadu Transparency in Tender Act, 1998, read with Tamil
Nadu Transparency in Tender Rules,2000 shall prevail.

Critical Information Summary

♦ TIIC reserves the sole right for carrying out any amendments /
modifications/changes including any addendum to this RfP. Such
amendments / modifications / changes including any addendum to this RfP
notified on TIIC’s website www.tiic.org will be binding on the bidders.

♦ Bidders are advised to study the tender document carefully. Submission of
bids shall be deemed to have been done after careful study and examination
of the tender document with full understanding of its implications.

♦ Any clarifications from bidder or any change in requirement will be posted in
TIIC website. Hence, before submitting bids, bidder must ensure that such
clarifications/changes have been considered by them. TIIC will not have any
responsibility in case some omission is done by any bidder.

♦ In case of any clarification required by TIIC to assist in the examination,
evaluation and comparison of bids, TIIC may at its discretion, ask the bidder
for clarification. The response/clarification shall be in writing and no
change in the price of substance of the bid shall be sought, offered or
permitted.

♦ Please note that all the information required as per the bidding document
needs to be provided. Incomplete information in bidding documents may
lead to non-selection.

♦ Modification and/or withdrawal of Bids: Bids once submitted will be treated
as final and no further correspondence will be entertained. No bid shall be
modified after the deadline for submission of bids. No bidder shall be
allowed to withdraw the bid.

♦ An eligible tenderer (Firm/LLP/company) can apply for Concurrent audit of
one or more branches /Head office, subject to the above terms of eligibility.
However, separate tender with separate EMD for each branch/head office
shall be submitted.
The tenderer should submit each tender application with all the required/
relevant particulars, separately along with the tender application fees of
Rs.1000/- plus GST @ 18% and EMD of Rs.15,000/-.

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

However, the tenderer (Firm/LLP/Company) shall be eligible for
selection/appointment for only one branch or Head office as the case
may be, which may please be noted.

♦ TIIC has the right to reject any or all bids received without assigning any
reason whatsoever.
Note: TIIC SHALL NOT BE RESPONSIBLE FOR NON RECEIPT / NON
DELIVERY OF THE BID DOCUMENTS DUE TO ANY REASON,
WHATSOEVER.

DISCLAIMER

Information contained in this document for Request for Proposal (“RfP”) and/or
subsequently provided to Tenderers, whether verbally and/or in documentary form
by or on behalf of The Tamilnadu Industrial Investment Corporation Limited
(“TIIC”) or any of its authorized employees (collectively referred to as “TIIC’s
Representatives”), is provided to the Tenderers based on the terms and conditions
set out in this RfP document and any other terms and conditions subject to which
such information is provided. This RfP document is not an agreement and is not an
offer or invitation by TIIC to any other party. The purpose of this RfP document is
to provide interested parties with information to enable formulation of their
proposal.

This RfP document does not purport to contain all the information each Tenderer
may require. The Tenderers should conduct their own due diligence, investigations
and analysis and should check the accuracy, reliability and completeness of the
information in this RfP document and obtain independent advice from appropriate
sources. TIIC or its Representatives make no representation or warranty and shall
incur no liability under any law, statute, rules or regulations as to the accuracy,
reliability or completeness of the RfP document and concerned with any matter
deemed to form part of the RfP document, award of the assignment, the
information and any other information supplied by or on behalf of TIIC or
otherwise arising in any way from selection process. The prospective Tenderer will
be responsible for all obligations to its staff, their payments, complying with
provisions of law relevant for the working of the Tenderer’s staff.

6|Page
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

1.0 Introduction

TIIC is the Premier State Level Financial Institution established way back in 1949
in the Country to faster Industrial Development in the State of Tamilnadu. It
plays the catalyst foster role of Development Financial Institution to extend
financial assistance to the MSME Industries, Service Sector and Large Scale
Industries apart from nurturing the first generation entrepreneurs.

TIIC, since its inception, has been instrumental to help more than One lakh
Entrepreneurs to realize their dream of setting up their own enterprises. Further,
it plays vital role in meeting the objectives of State Government to have balanced
growth of all regions and employment generation through the industries / service
enterprises financed by the Corporation.

TIIC has been serving the Micro, Small, and Medium enterprises, which account
for 90% of the total assistance, for more than 70 years with several financial
products viz. Term Loan, Working Capital Loan, Equipment Finance, Transport
Loan, Bill Financing, etc.
As of Oct 2021, TIIC has 6 Regional Offices, 24 Branch offices and 9 field/satellite
offices across Tamil Nadu with the Registered Office in Chennai.

TIIC intends to ensure the following through the proposed (Concurrent) Audit of
BOs/HO:

a) To verify how far the Internal control systems and procedures are adhered to
in various areas of operations of the Corporation.

b) To make analysis of the quality of the Corporation’s assets and the
effectiveness of control system

c) To evaluate the adequacy and effectiveness of Risk management, internal
control systems and procedures

d) To identify the potential High Risk areas and to suggest risk mitigants
e) To give a fair view on the perceived risk perception of the auditee offices

TIIC invites interested Tenderer to submit their technical and financial bids under
TWO cover system for the Quality and Cost-based Selection (QCBS) for
“Undertaking (Concurrent) Audit of Operations of branches of TIIC / Head Office “
in accordance with the scope of work, conditions and manner prescribed in this
Request for Proposal (RfP) document.

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

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 Audit of Operations of Branch Offices (BOs) at the following
locations and select departments of the Head Office of TIIC at Chennai.

Table – I

S. Regional Branch Office Loan Outstanding
(BO) as on 30.09.2021
No. Office
(Rs. in Crores) $

R1-Chennai

Head Office

(Select Depts., viz.)

Head Office Project/Subsidy,

HRM/Estate/F&R/

BCL/LM&R/REC.

R1-Chennai

1 Chennai Chennai 378.42

2 Chennai Tambaram 126.81

3 Chennai Tiruvallur 160.75

4 Chennai Vellore 36.03

5 Chennai Villupuram 21.26

R2 –Coimbatore

6 Coimbatore Coimbatore 102.69

7 Coimbatore Kurichi 48.85

8 Coimbatore Tirupur 93.94

9 Coimbatore Erode 83.72

10 Coimbatore Karur 28.69

R3 - Madurai & Tirunelveli

11 Madurai Madurai 58.79

12 Madurai Dindigul 47.95

13 Madurai Karaikudi 29.76

14 Tirunelveli Tirunelveli 55.07

15 Tirunelveli Thoothukudi 48.16

16 Tirunelveli Nagercoil 93.48

17 Tirunelveli Sivakasi 55.39

R4 – Salem & Trichy

18 Salem Salem 65.79

19 Salem Dharmapuri 47.52

20 Salem Hosur 96.56

21 Salem Kallakurichi 6.99

22 Trichy Trichy 63.19

23 Trichy Thanjavur 39.34

24 Trichy Cuddalore 31.46

$ including written off cases.

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RFP for (Concurrent) audit of Operations of TIIC Branch / 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, 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 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

Information contained in this document for Request for Proposal (“RfP”) and/or
subsequently provided to Tenderers, whether verbally and/or in documentary
form by or on behalf of The Tamilnadu Industrial Investment Corporation
Limited (“TIIC”) or any of its authorized employees (collectively referred to as
“TIIC’s Representatives”), is provided to the Tenderers based on the terms and
conditions set out in this RfP document and any other terms and conditions
subject to which such information is provided. This RfP document is not an
agreement and is not an offer or invitation by TIIC to any other party. The
purpose of this RfP document is to provide interested parties with information
to enable formulation of their proposal.

This RfP document does not purport to contain all the information each
Tenderer may require. The Tenderers should conduct their own due diligence,
investigations and analysis and should check the accuracy, reliability and
completeness of the information in this RfP document and obtain independent
advice from appropriate sources. TIIC or its Representatives make no
representation or warranty and shall incur no liability under any law, statute,
rules or regulations as to the accuracy, reliability or completeness of the RfP
document and concerned with any matter deemed to form part of the RfP
document, award of the assignment, the information and any other information
supplied by or on behalf of TIIC or otherwise arising in any way from selection
process. The prospective Tenderer will be responsible for all obligations to its
staff, their payments, complying with provisions of law relevant for the working
of the Tenderer’s staff.

Subject to any law to the contrary, and to the maximum extent permitted by
law, TIIC and its officers, employees disclaim all liability from any loss or
damage (whether foreseeable or not) suffered by any person acting on or

9|Page
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

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 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 short listing / 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. Tender Inviting Authority

The tender inviting authority will be The Head of the Dept. of IA & ISO Dept.,
TIIC., Head Office, Chennai-600 035.

1.9 Tender Accepting Authority

The tender accepting authority will be The Chairman & Managing Director,

TIIC., Head Office, Chennai-600 035.

1.10 Maintaining Secrecy and Confidentiality

The applicant shall be liable to maintain secrecy and confidentiality of all the
information / data / operations, etc. of TIIC.

1.11 Errors and Omissions

Each applicant should notify TIIC of any error, omission, or discrepancy found
in this RfP document.

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

1.9. Acceptance of Terms

An Applicant will, by responding to TIIC for RfP, be deemed to have accepted the
terms of this RfP document.

2. Broad Scope of Services for the (Concurrent) Auditor

2.1 Objective:
The main objective of Concurrent cum Internal Audit are :

a) To verify how far the Internal control systems and procedures are adhered to
in various areas of operations of the Corporation.

b) To make analysis of the quality of the Corporation’s assets and the
effectiveness of control system

c) To evaluate the adequacy and effectiveness of Risk management, internal
control systems and procedures

d) To identify the potential High Risk areas and to suggest risk mitigants

e) To give a fair view on the perceived risk perception of the auditee offices

2.2 Project Objective and Scope of audit 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 / LLP/ 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 Branches 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 whose operations also need to be audited.

The objective and scope of the Concurrent Audit to be undertaken in the above
Head Office /branches are as under:

A. Objective of Audit:

The main objectives of the audit are as follows:

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

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.

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. a) Physical verification of all assets for which loan disbursement is

considered (concurrent basis / every month).

b) Physical checking of stocks financed under working capital

scheme at relevant places (concurrent basis / every month).

c) Random inspection of 1 NPA unit per month (With loans above

Rs.50.00 lakhs) – without any repetition of the units inspected.

xiii. Detection and arresting of leakage of income, if any.

xiv. To follow up with branch officials 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 /fraud 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

12 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

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.
viii. Verify whether Legal clearance certificate has been issued by the Branch
Manager.
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 properly created over securities offered and
CERSAI/ROC Registrations are done properly.
xii. a) Physically verify all the assets financed including stocks created
out of working capital by undertaking field inspection in respect of
all disbursed cases.

b) Undertake inspection of units on a sample basis to cover 1 NPA
unit (with loan above Rs.50.00 lakhs )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,
xiv. project completion report, final list of machinery, Acknowledgment of
xv. Debt, Annual report, etc.) are not received, even after a reasonable time,
xvi. prompt action is taken by the branch to get the same.
xvii. 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 TIIC clause and the policies are
renewed on timely basis.
Verify whether there is any mis-utilisation of the loans and whether there
are instances indicative of diversion of funds.
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.
Verify whether the classifications of loan assets of the Branch have been
done properly and income recognition norms have been followed up, as

13 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

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.
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. Also verify whether
inspection of units financed have been done by Branch Officials as per
extant guidelines.
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?
xxix. To verify discounting of bills / retirement of bills, on daily basis.
xxx. 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.
xxxi. To verify, due date-wise, Live Bills under Bill Finance Scheme.
xxxii. To undertake visit to purchaser companies to verify the invoices under
BFS on sample basis if necessary.
xxxiii. Safe custody verification as per extant guidelines.
xxxiv. To identify and report the BFS bill pending for more than 180 days and
the action taken by branch thereon.

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.

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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.

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. Scope for Follow-up /Recovery:

1.Whether Inspection / Visit slip of the units by LAO/LAAs available for each
month in the files for all doubtful cases?

2.Whether any special remarks like change in management, change in location,
missing machinery etc., have been reported and acted upon by the branch in time?

3.Whether Reschedule / Relief / concession given Registers are maintained.

(a) In the case of change of management / take over whether all the conditions
stipulated during the approval have been complied with.
(b) Whether documents executed within the stipulated time for the above.
(c) If not whether action has been initiated to regularize the account.

4.In the case of waiver, whether settlement has been made within stipulated
period. If not whether interest for delayed period has been collected and
condonation for the delay has been approved.

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5.Whether details of assets available at the time of possession were clearly
indicated in the possession taken register including missing assets noticed if any
during possession.

6.Whether mahazar copy of has been sent to concerned promoter / collateral
owner?

7.Whether criminal compliant has been lodged for missing assets, if any?

8.Whether steps have been taken for issue of advertisement for auction sale within
reasonable time.

9.Whether auction sale register is mained with full details.

10.Whether data sheets have been prepared and updated for all doubtful cases and
further course of action has been initiated as suggested in the data sheets for
those cases?

11.Whether details of the assets to be auctioned, details of auction, terms and
conditions of auction are sent to the promoters / guarantors / collateral owners
prior to auction sale.

(a) Whether the highest bidder paid the amount within stipulated period.
(b) If the bidder has remitted the bid amount beyond the stipulated period.
(c) If the bidder has not remitted the bid amount within the reasonable time
whether the amount has been forfeited as per the terms and conditions.

12.Whether promoter has been informed about the bid amount credited in the loan
account, valuation of the assets and balance payable.

13.If the auction is not confirmed whether 10% bid amount has been refunded
before advertising for the next auction.

14.Whether suit / SFC OP was filed against the borrower for the balance dues after
the assets are sold in public auction.

15.For the unit where decree has been obtained whether branch has taken steps to
identify the property owned by the promoters and Execution Petition has been
filed.

16.Whether suit filed cases have been reviewed periodically.

17.Whether categorization statement of LAO/LAA is maintained.

18.In the case of WCTL availed by the units whether stock statement has been
obtained every month from the unit.

19.Whether slippage of loans are placed before the Branch Sanction Committee
every month.

20.Whether working results of the unit are obtained and analysed every year where
loan sanctioned is 1 crore and above.

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21.Acknowledgement of Debt to be obtained as per extant guidelines and kept in
safe custody (copy in the file).

22.Adequacy of working capital limits to be ensured.

23.Discussion with banks and reports on such visits / discussion to be kept in
the file and action to be initiated on the observations, wherever required.

24.Insurance / renewal of insurance of the assets of the borrower, incorporating
TIIC’s interest

25.Notice regarding TIIC’s charge on the assets / machinery to be verified at the
borrowers premises.

26.Maintaining close and regular contact with the promoters/ directors and key
personnel of the assisted units; discreet market interaction with units in similar
industry, suppliers, banks, auditors etc.

27.Periodical visits to collateral securities / encroachment / modification etc. to be
taken up with borrower. Independent visits, whether undertaken in respect of
consortium finance/ multiple banking projects, if there is substantial delay.

28.Fresh Valuation of collateral securities, wherever considered necessary as per
the guidelines.

29.Letter of assignment to empanelled valuers/ chartered enginers is issued.

30.Existing loan portfolio (including NPAs) are reviewed and wherever immovable
property is available as security to the Corporation a fresh E.C. is obtained every
year.

31.Regular monitoring of cases which are rescheduled/ restructured or are in
stress category is done.

32.Viability of a/cs at the time of restructuring of the loan assets are ensured
before restructuring.

33.Restructuring to be done looking into the cash flows of the borrower and after
assessing the financial viability.

34.Proper classification of assets / accounts as per extant guidelines.

35.Adherence to guidelines in respect of NPA cases for recovery of dues.

36.Availability of limitation period in respect of all accounts in the portfolio.

37.Whether advertisement for sale of the taken over assets under SARFAESI Act,
issued in prescribed format.

38.Whether re-verification of title deeds and other documents done in respect of
credit exposures of Rs.5 crores and above.

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39.In BFS cases Demand advices are sent to the seller for overdue bills and penal
interest.

40.On delay in retirement of any bill, interest and penal interest should be
demanded and reminders should be sent regularly for any amounts remaining
unpaid towards bills, interest or penal interest.

41.Dishonoured cheques should be kept separately in safe custody.

42. Whether reimbursement received for a particular bill has been adjusted against
the dues for the same bill?

E. Scope for Accounts:

1. Whether loan ledger sheets are maintained in good condition?

2. Whether cashier’s book is written upto date and cash balance checked

3. Whether Journal Voucher register is maintained upto date?

4. Whether Bank reconciliation statements have been prepared and are upto
date?

5. Whether cash / bank entries generated in computer are checked and signed
by the officer and maintained in a separate file?

6. Whether principal & interest demands are correct and sent on time?

7. Whether remittance made by loanees are properly appropriated?

8. Whether term loan, transport loan postings were made upto date?

9. Whether funds are being transferred to Head Office regularly?

10.Whether vouchers have been stitched regularly? If so, it should be signed
by the Officer?

11.Whether monthly General Ledger Trial Balance is extracted and checked by
the Officer?

12.Whether deletion of vouchers from the system is done with proper written
authentication of the Branch Manager / Assistant Manager?

13.General Ledger codes are properly assigned in respet of the various account
heads?

14.Whether loan numbers, borrower number are assigned in the natural
sequence and proper records are maintained for the same?

15.Whether Computers / Systems are accessed by authorised person?

16.Whether periodical / Regular data back up are maintained?
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17.Whether the interest rates are correctly mentioned in the loan ledger?

18.Whether auction sale proceeds / sale of machinery / sale of collateral etc.,
have been properly appropriated towards principal account?

19.Whether the Tax deducted at source details are furnished correctly.
Whether the amounty remitted by Head Office tallies with the Branch
figure?

20.Whether the GST paid/ input credit details are furnished correctly to Head
Office every month?

21.Whether the GL code wise listing for all the GL heads are taken by the
branches after the end of the financial year?

22.Whether the provisioning statement prepared by the banches at the end of
the year is correct?

23.Whether the Branch is forwarding the weekly back up to Systems
Department at Head Office regularly ?

24.Whether the duplicate key location is available ?

25.Whether Reset clause for Interest properly carried out ?

26.Whether foreclosure register is maintained by the Branch Office?

27.Whether Cheques inward register maintained?

28.System for issue of cheques & safe custody of cheque books available.

29.Sundry / suspense monthly reconciliation

30.Day begin / Day end is on line

31.Whether the auditee office is maintaining proper records of cash
transactions / series of transactions integrally connected > Rs. 10 lakh

32.Whether the auditee office is maintaining proper records of all suspicious
transactions, loans & advances, bills, Records to contain details such as
nature of transactions, amount of transactions, date of transaction, parties
to the transactions etc.?

33.Whether the reporting requirements regarding verification of identity of
clients, maintenance of records, suspicious transactions, etc. to Financial
Intelligence Unit, India (FIU-IND) are followed?

F. Scope for Administration:

To check whether the following registers are maintained/updated and report on
the following administration areas given below:-

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1. Attendance Register
2. Late attendance Register
3.Cash Book / Bank Book
4.Postage Register
5.PL, ML Register / records of the employees / service register
6.Casual Leave Register
7.Inward Register
8.Despatch Register
9.Miscellaneous advance Register
10.T.A. Bill Register
11.Payment Register
12.Vehicle maintenance Regiter
13.Vehicle log book
14.Insurance records on office assets, cash holdings, cash in transit, etc.
15.Regional / Branch Manager’s residence telephone bills / recovery for excess

calls, etc.
16.Inspection report for Driving Licence, Insurance, RC book etc., for all the

employees who avail conveyance allowance.
17.Employment Exchange Returns
18.Contract appointments
19.Whether verification of all fixed assets (dead stock items) carried out prior to

closing of annual accounts.
20.Maintenance of all files, registers and other records.
21.System of keeping Old records and their easy retrieval, in case of emergency.
22.Availability of adequate communication facilities.
23.Availability and safe custody of duplicate keys of all cupboards/furniture etc.,

Safe custody Register / its maintenance, retrieval of documents.
24.Destruction of old records as per HO guidelines.
25.Insurance coverage for housing loans.
26.Reimbursement of Official entertainment expenditure
27.Stationery / Printing
28.Reimbursement to officers for newspapers / periodicals / books, etc.
29.Rent / taxes for office premises timely renewal of lease.
30.Maintenance of dead stock / AMCs / Dead stock register / inventory for misc.

items not classified as dead stock items.
31.Repairs & maintenance of office.
32.Security arrangements for office.
33.Car hire bills / travel agent bills.
34.Liveries to workmen employees.
35. Expenditure control by auditee office as per HO guidelines issued from time to
time.

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G. Scope for Head Office Department:

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.

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.

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xxx. Subsidy reimbursement received from Government is properly
xxxi. appropriated and accounted to the respective units.
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.

2.2 The CA Firm will have to submit the following reports to the

Management:

(i) Quarterly 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,
Bill finance and other operations, compliance to the terms and
conditions of sanction, post disbursement, supervision, documentation,
review/renewal of limits, bills 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 etc. and areas of audit viz. Flash Report as per the formats.
(Enclosed in Annexure)

(iii) Monthly reports on physical verification of assets for all the
disbursement made during the month (as per format enclosed)

(iv) Unit Inspection Report on 1 NPA unit per month (as per format
enclosed)

(v) Bi-annual report on the compliance of audit by branch.
(vi) Any other related reports as may be required by TIIC from time to time.

Note: 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 all
appropriate actions against such deliquencies.

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 For 24 branches Sl.No.1 to 24 :
2 Tambaram Branch Manager of the concerned Branch,
3 Tiruvallur Regional Manager of the Concerned Region,
4 Vellore and HoD of Internal Audit Department at
5 Villupuram Head Office.
6 Coimbatore

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7 Kurichi

8 Tirupur

9 Erode

10 Karur

11 Madurai

12 Dindigul

13 Karaikudi

14 Salem

15 Dharmapuri

16 Hosur

17 Kallakurichi

18 Tirunelveli

19 Thoothukudi

20 Nagercoil

21 Sivakasi

22 Trichy

23 Thanjavur

24 Cuddalore

25 Head Office, Chennai For Head Office:
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 audit 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 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.

Flash Report (Monthly), Audit Report (Quarterly), Physical Verification Reports
(Monthly) Unit Inspection Report (Monthly) & Bi-annual Feed back report.

2.3 The selected CA firm would also be required to comply with the following
requirements:

i. The Firm / LLP/Company shall ensure that the audit firm / company or any

sister / associate concern, is not conducting the statutory audit of the

Corporation or any of its branches.

ii. The firm/ company shall execute undertaking of fidelity and secrecy on its
letterhead in the format prescribed by the Corporation.

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iii. The firm/ company shall ensure that the audit be carried out in a
professional manner and in case of any misconduct and negligence, the
Corporation at its sole discretion report the matter to ICAI/RBI/CAG as it
may deem necessary.

iv. The firm / company shall ensure that it will not sub-contract the audit

work assigned to any outside firm / company or other persons, even

though such persons are qualified Chartered Accountants.

v. The CA firm would do the audit work themselves and would depute qualified
and experienced employees and further ensure continuity of the member(s)
of the audit team for smooth audit functions at BO/HO. The team of
Concurrent Audit should consist of a Principal (A qualified Chartered
Accountant), a Team leader ( Chartered Accountant/Retired Bank/
Financial Institution employee not less than the cadre of Manager with
minimum 3 years experience in Bank audit) and Audit staff (semi
qualified/articled clerk). The team leader & audit staff, shall visit the
branch/HO on daily basis but in any case not less than 15 days in a month.
The principal / partner(s) will visit the branch/HO themselves at least once
in a week (ie. not less than 4 days a month) or as and when required by the
Corporation. The shortfall in attendance may attract deduction in fees
payable in proportion with attendance. The team leader allotted for audit
of a branch/Head office, should not be changed without the approval of
TIIC and if any changes are necessary to be made by the CA
firm/Company, should be done only with the prior written approval of
the TIIC.

vi. A declaration shall be furnished by the firm that credit facilities availed by
the firm or partners or firms in which they are partners or directors,
including any facility availed by a third party for which the firm or its
partners 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.

vii. Any other terms and conditions of the assignment would be decided by the
Corporation, on a case-to-case basis, with the approval of CMD of TIIC and it
would be binding on the CA.

2.4 Appointment of Auditors - other conditions:

i. As a matter of policy, TIIC shall engage the services of a CA

firm/LLP/Company for carrying out 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/HO, such CA firm / company

will not be eligible for another assignment (in the same branch/HO).

ii. 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 / company to
become eligible for fresh appointment in the same BO/HO. This will be

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purely at the discretion of the Corporation and no rights whatsoever accrue
to the firm / company for such appointment.

iii. The auditor should adhere to the audit coverage strictly as per the scope as
may be decided by the Corporation, from time to time.

iv. The auditors should not undertake any other activities / assignment on
behalf of the branch or HO, without obtaining the clearance from IAD, in
writing.

v. The auditors would not give any rating or grade to the Branch.

vi. Necessary arrangements would be made for providing space, workstation
and access to systems (viewing rights only) to the auditors for ensuring
smooth conduct of the audit. This would be the responsibility of the
Corporation. However, Branch In-charge / HoD, IAD will take responsibility
for arrangement of the same.

vii. The CA firm /LLP/Companies should continue to satisfy the eligibility norm
for appointment as Auditors as prescribed by the Corporation, from time to
time.

viii. The assignment would be subject to periodical review at the discretion of the
Corporation. The Corporation reserves the right to terminate the assignment
for Audit at any time, without assigning any reasons whatsoever. In such an
event, the CA firm/LLP/Company shall take such steps, as are necessary to
bring the services to an end in a cost effective, timely and orderly manner.

ix. The IAD will stipulate the time limits for submission of the reports as per the
prescribed format.

x. The audit report format would be reviewed on an annual basis by IAD. The
firms should strictly adhere to the report format and the time limit. Delay in
submission of reports/incomplete reports will attract deductions from
remunerations/fees payable to CA firm /LLP/ Company as decided by the
Corporation.

xi The Concurrent Auditors shall seek any clarification / guidance from IAD for
smooth conduct of the Concurrent Audit.

3 Qualification Criteria

Tenderer must read carefully the minimum conditions of eligibility (the
“Conditions of Eligibility”) provided herein. Proposals of only those
Tenderers who satisfy the Conditions of Eligibility will be considered for
technical evaluation.

3.1(a) Eligibility Criteria:
Tenderer must read carefully the minimum conditions of eligibility (The
Conditions of Eligibility) provided therein. Proposals of only those Tendereres
who satisfy the conditions of eligibility will be considered for Technical
evaluation.

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Sl. Eligibility Criteria
No.

i. Tenderer should have Minimum 3 years of branch audit / concurrent
audit experience in Financial Institutions / Public Sector Banks,
mainly in the area of credit dispensation-knowledge & experience in
carrying out audit works and other day to day operations (with
documentary proof for the award and completion of the assignment).

ii. Tenderer 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).

Note:

Tenderer 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.

iii. The tenderer should be empanelled with RBI/any of the nationalised
bank and the validity in currency

iv Tenderer should have regular set-up, either head office or full-fledged
branch offices, at respective locations (locally) of TIIC Head Office /
branches (which will be subject to field verification by the TIIC; if
found to be false, the tender submitted by the said firm will be
summarily rejected and the next CA firm in the reserve list will be
considered).

V Tenderer shall have annual turnover not less than Rs.20.00 lakhs as
on 31.03.2020.

## An eligible tenderer (Firm/LLP/company) can apply for Concurrent audit of one
or more branches /Head office, subject to the above terms of eligibility. However,
separate tender with separate EMD for each branch/head office shall be
submitted.
The tenderer should submit each tender application with all the required/ relevant
particulars, separately along with the tender application fees of Rs.1000/- plus
GST @18% and EMD of Rs.15,000/-.
However, the tenderer (Firm/LLP/Company) shall be eligible for
selection/appointment for only one branch or Head office as the case may
be, which may please be noted.

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3.1. (b) Restricted Eligibility /Ineligible conditions:

viii. The following Concurrent Auditors appointed earlier by the
Corporation, for the following branches shall not apply for the same
branch /HO as per Corporation’s norms. But they are eligible to apply
for other branches/Head office, as the case may be.

S. Branch Name/ Name of the CA Firm

No. Head Office

1 Chennai M/s. Raghunathan & Anantharaman,
Chennai

2 Tiruvallur M/s. Khicha & Prabu Kesavan, Chennai

3 Maraimalai Nagar M/s. S Sonny Associates, Chennai

4 Coimbatore M/s. K C S Associates, Coimbatore

5 Tirupur M/s. S V S S & Co, Tirupur

6 Erode M/s. Elangovan & Co, Erode

7 Kurichi M/s. SIVSM & Company Coimbatore

8 Nagercoil M/s. Dharmalingam & Associates,
Nagercoil

9 Hosur M/s. Venkat & Raghunathan, Hosur

10 Head Office M/s. Vaithisvaran & Co LLP, Chennai

viii. The firm/LLP/company or any of its sister/associate concern wherein
the present Statutory Auditor of the Corporation is associated as a
partner/director shall not be eligible to apply.

3.1.(c) : The following documents shall be furnished without fail; alongwith
documentary proofs required to support their eligibility.

a) The Tenderer should submit copy of valid PAN Card.

b) The Tenderer should have valid GST Registration. Copy of GST Certificate to
be submitted.

c) The Tenderer should not have been black listed by TIIC or any State or Central
Government or Banks/Financial Institutions in India as on date. An
undertaking must be submitted in support of the same (Annexure – VIII).

d) The Tenderer or their sister concerns should not be involved in the Statutory
audit of the Corporation at present.

e) The existing Concurrent Auditors of the Corporation shall not apply for the
same branch for which they are doing Concurrent Audit at present.

Only those proposals that qualify the Eligibility Criteria will be considered for the next
stage of evaluation.

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RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

3.1.1 Evaluation of Technical Proposal
Evaluation of Technical Proposal

The Technical Proposal will be evaluated on the basis of Tenderer’s experience.
Only those Tenderers whose Technical Proposals score more than 60 marks out
of 100 shall be considered for evaluation of the Financial Proposal.

The scoring criteria to be used for evaluation shall be as follows:

S. Criteria Maximum
No. Marks

(Weightage)

1 • The Tenderer should be a Chartered Accountant firm / LLP /
company with year of establishment

• The Tenderer should have Knowledge and experience in carrying out 20

audit works and other day to day operations.

• Less than 3 years - No Marks

• Years since establishment – 3 years – 10 Marks

• Above 3 years (1 marks for every additional 1 year of experience)

subject to a maximum of 10 marks (Additional)

2 The tenderer firm/Company shall have more than 3 partners / 10

directors.(Certificate of practice) – 10 Marks

– 3 Partners / Directors or less - 5 Marks

3 Be the Tenderer having at least 3 years of 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 Bank / Financial Institution (with 30

documentary proof of the award of assignment and completion

certificate)- 10 Marks

– every additional year of experience will carry 2 marks subject to
maximum of 20 – 20 Marks (Additional)

4 Whether the Tenderer is empanelled with RBI 10

5 Whether the Tenderer is registered /empanelled with CAG 10

6 Be the Tenderer having availability of suitable Infrastructural facilities

including office set up, adequate manpower – minimum 3 (other than

partners/directors), who are specialized in the area of audit of

Branch Operations mainly in the area of credit dispensation and 10
other day to day operations of the Corporation. Team leader should

be a qualified CA/Official of retired bank/Financial Institution not

less than the cadre of Manager and other Team Members (Annexure –

VII).

7 Be the Tenderer’s Turnover of minimum Rs.20.00 lakhs per annum –

4 Marks. 10

Additional Turnover of every Rs.5.00 lakhs – 1 mark subject to
maximum of 6 marks – 6 Marks (Additional).

Maximum Score 100

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4 Language of the Proposal

The Proposal prepared by the Tenderer as well as all correspondences and
documents relating to the Proposal shall be in English language only. If the
supporting documents are in a language other than English and Tamil, the
notarized translated English version of the documents should also be enclosed.
Proposal received without such translation copy will be summarily rejected.

5 Availability of RFP Documents

a) RFP document can be downloaded from www.tenders.tn.gov.in/ www.tiic.org
at free of cost. For the downloaded tender document, the Tenderer should give
a declaration for not having tampered the Tender document downloaded (as
per Annexure IX). However application fee of Rs.1000/- puls GST shall be
enclosed alongwith each RfP submitted.

6 Pre-Bid Meeting

Pre-bid meeting will be held at 11.00 AM on 01.11.2021 in the Head Office of TIIC,
MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035, during which the
prospective Tenderers can get clarifications about the tender. The Tenderers shall
send their queries in writing to audit_tender@tiic.org at least two days prior to the
pre-bid meeting date. The Tenderers are advised to check
www.tenders.tn.gov.in/www.tiic.org for up-to-date information like change in
date / venue etc., of pre-bid meeting. Non-attending of pre-bid meeting is not a
disqualification.

7 Clarification on the RfP Document

Any discrepancies, omissions, ambiguities or conflicts in the audit clarifications
tender document or any doubts as to their meaning and any request for
clarification may be sent in writing to “The Head of the Dept. of IA & ISO Dept.,
TIIC, MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035” or through
e-mail to audit_tender@tiic.org The Head of Department (IA&ISO) will review the
same and where information sought is not clearly indicated or specified in the
tender documents, will issue a clarifying bulletin which will be uploaded on
www.tenders.tn.gov.in /www.tiic.org, The Head of Department (IA&ISO) will
neither make nor be responsible for any oral instructions. Request for clarification
should be brought to the notice of The Head of Department, (IA&ISO) in writing,
before 48 hours of the pre-bid meeting.

8 Amendment of the RfP Document

TIIC whether on its own initiative or as a result of a query, suggestion or comment
of an Tenderer, may modify the tender document by issuing an addendum or a
corrigendum at any time before the opening of the tender. Any such addendum or
corrigendum will be uploaded on www.tenders.tn.gov.in /www.tiic.org and the

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same will be binding on all Tenderers, as the case may be. Any addendum or
amendment will form part and parcel of the tender document.

9 Authorization of the Tenderer

The Proposal should be signed and sealed on each page by the Tenderer or by the
person who is duly authorized for the same by the Tenderer. A Power of Attorney
indicating the Authorized Signatory would be required in case the signing authority
is not Director/Partner on the Board of Directors/ Firm of the Tenderer.

10. Submission of the Proposal in Two Cover System

The RfP must be submitted on or before the closing date and time

• Fax / email copies of any submission are not acceptable and will be
rejected by TIIC.

• Copy of bids and attachments must be provided in sealed envelopes –
technical bid separately - financial bid separately with proper
superscription.

The person(s) signing the Bids shall initial all pages of the RfP. The Bids shall
contain no erasures or overwriting except as necessary to correct errors made by
the applicant, in which case corrections shall be initialled be the person(s) signing
the Bids.

If the submission does not include all the information required 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.

(a) Every page of the terms and conditions of the RfP document including
amendment/addendum should be signed and sealed in token of having
accepted the RfP conditions, failing which the proposal will be rejected
summarily.

(b) Proposals should be submitted in two parts:

Part I Fulfilment of Basic Eligibility Criteria
Form A:
Form B: Technical Proposal (to contain document in support of Eligibility and
Technical Evaluation) with all relevant forms as given in the
Annexure-XIII interveningly grouped in Form A and Form B .

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Part II

Financial Proposal (to contain the financial quote in lumpsum)

(c) Tenders should ensure submission of all documents along with Part-I (Form A
and Form B) and Part II as per the Check list given in Annexure -XIII.

(d) A soft copy of Part-I should be provided in a Compact Disc/USB Flash Drive.
This is only for reference purposes and in case of discrepancies between the
two, hard copy submission shall prevail.

(e) Tenderers are requested to submit Part I (Form A and Form B) and Part II in a
two different sealed cover superscripting as Part I and Part II respectively.
These two covers namely Part I and Part II must be placed in a separate sealed
cover superscripted as “RfP for the Selection of (Concurrent )Auditors for
Audit Operations of Branch office ______________( Name of the Branch )/Head
Office of TIIC ” addressed to “The Head of the Dept. of IA & ISO Dept., TIIC,
MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035”, containing the
name and address of the Tenderer. Proposals submitted with unsealed /not
properly sealed cover would summarily be rejected.

(f) Tenders should be dropped only in the appropriate tender box (R1/ R2/R3/R4)
as grouped in Table 1 - Page no.8) kept at “TIIC, MHU Complex, 692, Anna
Salai, Nandanam, Chennai - 600035” on or before 11.00 AM of 22.11.2021”.
Proposals will not be received by hand.

(g) Alternatively, the tenders can be submitted through registered post so as to
reach the above address on or before 11.00 a.m. of 22.11.2021. Tenders
received after the specified time will not be considered and TIIC will not be liable
or responsible for any postal/ transit delays.

(h) A proposal once submitted shall not be permitted to be altered or amended.

11. Earnest Money Deposit

a) Every Proposal/tender should be accompanied by an Earnest Money Deposit
(EMD) to the value of INR 15,000/- in the form of a Demand Draft only drawn
on any Indian Nationalized/Scheduled Commercial Bank in favour of “The
Tamilnadu Industrial Investment Corporation Limited”, payable at Chennai.
The EMD in any other form will not be accepted. The Earnest Money Deposit
will be returned to the unsuccessful Tenderers.

b) The Earnest Money Deposit will be retained in the case of successful Tenderer
and it will not earn any interest and will be dealt with, as provided in the terms
and conditions of the tender.

c) Any request of the Tenderer, under any circumstances claiming exemption from
payment of EMD will be rejected and their price offer will not be opened.

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d) The amount remitted towards EMD is liable to be forfeited in case the Tenderer
fails to execute the contract after submission of the proposal or after acceptance
of the offer by TIIC or fail to sign the Agreement or to remit the Security
Deposit.

12. Validity of the Proposal

The Proposal shall be valid for a period of not less than 120 days from the Proposal
Due Date (the “PDD”) or for the period that may be mutually extended but not
exceeding 180 days.

13 Opening and Evaluation of the Proposal

(a) The proposals received up to 11.00 AM as per the office clock on 22.11.2021
will be taken up for opening. Proposals received after specified date and time
will not be accepted. Only the Technical Proposal (Part I) will be opened by the
Chairman & Managing Director or by the Person/Committee authorized by
him/her in the presence of the available Tenderers/ representatives of the
Tenderers who choose to be present as scheduled below. The Technical
Proposal shall be verified as to contains all the necessary forms along with the
EMD. If any of the forms are found to be not confirming with the Checklist in
the Annexure XIII, those bids shall not be considered for evaluation.

(b) The Chairman & Managing Director or Person/Committee authorized by him
will inform the attested and unattested corrections, before the Tenderers and
sign all such corrections in the presence of the Tenderers. If any of the
Tenderers or agents not present then, in such cases the Person/Committee will
open the Tender of the absentee Tenderer and take out the unattested
corrections and communicate it to them. The absentee Tenderer should accept
the corrections without any question whatsoever.

(c) If the date fixed for receipt of the proposal happens to be a Government holiday,
the sealed tenders will be received up to 11.00 AM on the next working day .

(d) The Technical proposal will be evaluated by a Tender Scrutiny Committee of
TIIC in terms of the qualification criteria. The Committee shall comprise of
the members as appointed by the Chairman & Managing Director of TIIC. The
Committee reserves the right to disqualify any of the Tender in case the
Committee is not satisfied with the documents furnished, including the past
performances.

(e) TIIC will verify the credentials/ supporting documents, etc., submitted by the
tenderers with the concerned departments/ agencies/ clients before opening of
Part II cover and in case if any discrepancy is found, their Tender will be
rejected, and their Part-II Cover will not be opened.

(f) Any adverse/not satisfactory remarks on the performance of previous works will
entail disqualification of the tender.

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(g) The marks scored in Technical bid will be evaluated (normalised) individually
for each branch / Head office as follows:

TN = TB /Tmax * 100
TN = Normalised technical score of the bidder under consideration
TB = Evaluated technical score of the bidder under consideration
Tmax = Maximum technical score of any bidder for that branch/Head office.

(h) The Tenderers declared as qualified by the Committee, will be informed the date
of opening of Part II (Price bid).

14. Price Offer

(a) The Price bid should be kept only in the separate Part II cover only and if not
done, the same will be summarily rejected.

(b) The price bid should be prepared as per Annexure-XII.

(c) GST should be quoted separately as per the price bid format.

(d) The fee quoted should be inclusive of travel, boarding, lodging and other
incidentals in connection with the completion of the assignment. There shall be
no out of pocket expenses in addition to the fee quoted shall be borne by TIIC.

(e) The price should be neatly and legibly written both in figures and words.

(f) In case of discrepancy between the fee quoted in words and figures, lowest of
the two shall be considered.

(g) Part-II bid should not contain any counter offer or financial conditions.
Variation in the financial terms and conditions of the tender will not be
accepted and such tenderers will be summarily rejected.

(h) The contract is initially for a period of ONE YEAR from the date of signing of the
agreement with the renewal option of maximum additional two years
with/without enhancement in remuneration in any case not exceeding 10% at
the sole discretion of TIIC.

15. Evaluation of the Financial Proposal

a) The Financial Proposal will be evaluated in accordance with Tamil Nadu Tender
Act 1998 and Tender Transparency Rules 2000 as amended from time to time.

b) The evaluation shall include State Goods & Service Tax (SGST), Central Goods
& Service Tax (CGST) and Integrated Goods & Service Tax (IGST) and other
applicable duties / levies.

c) Each Financial Proposal will be assigned a normalized Financial Score (FN). For
financial evaluation, the total cost indicated in the Financial Proposal, will be
considered.

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d) The Authority will determine whether the Financial Proposals are complete,
unqualified and unconditional. The cost indicated in the Financial Proposal
shall be deemed as final and reflecting the total cost of services. Omissions, if
any, in costing any item shall not entitle the Tenderer to be compensated and
the liability to fulfill its obligations as per the terms within the total quoted price
shall be that of the Tenderer. The lowest Financial Proposal (Fmin) will be given a
financial score (SF) of 100 points. The financial scores of other proposals will be
computed individually for each branch/head office as follows:

FN = Fmin /FB * 100
Where

FN = Normalised financial score of the bidder under consideration
FB = Evaluated cost for the bidder under consideration
Fmin = Minimum evaluated cost for any bidder for the BO/HO

e) Proposals will finally be ranked according to their combined normalized
technical (TN) and normalized financial (FN) scores as follows:
B = TW * TN + FW * FN
Whereas, B is the combined score, and Tw and Fw are weights assigned to
Technical Proposal (50% weightage) and Financial Proposal (50% weightage)
that shall be 0.50 and 0.50 respectively.

f) The Selected Tenderer (R1) shall be the Tenderer having the highest combined
score. The subsequent successive highest Tenderer (R2), (R3), (R4) etc. shall be
kept in reserve and may be invited in its discretion for negotiations sequentially
in case the first-ranked Tender withdraws or fails to comply with the
requirements stated in this document.

16. Special cases

• In the event of more than one Tenderer scoring the same highest score (B) ;
TIIC shall first consider the Highest Financial Score (FN) for ranking the
Tenderers.

• In the event of further tie, highest technical (TN) score will be considered.

• In the event of still a tie, CA firm having higher number of years of
concurrent audit experience will be considered successful one.

17. Award of Contract

The Selected Tenderer for Branch Office may, if necessary, be invited for
negotiations. The negotiations shall be for reducing the price of the proposal on
par with minimum price of similar Branch office and the selected Tenderer for
Head Office, if necessary for reconfirming the Tenderer under this RfP. Issues
such as understanding of the RfP, methodology and quality of the work plan
shall be discussed during negotiations.

a) The Contract will be awarded after successful negotiations, with the selected
Tenderer. If negotiations fail, the TIIC will invite the Tenderer whose score is

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next higher to R1 and ranked as R2 for Contract negotiations. If negotiation
with R2 fails the above process will continue with R3, R4 and so on till all the
technically qualified firms are covered. Upon successful completion, the TIIC
will inform the other Tenderers that their proposals have not been selected.

b) Upon finalization of Selected Tenderer, TIIC will issue the Letter of Award. The
successful tenderer shall communicate his acceptance of the Letter of Award
within 2 working days from the date of issue of Letter of Award.(Annexure XIV)

C) Disqualification
Any form of canvassing / lobbying / influence / query regarding shortlisting,
status, etc. will lead to disqualification.

18. Period of Contract:

The selected firm/ LLP of Chartered Accountant would initially be assigned the
contract for a period of one year initially, and extendable for further two more
years (extended for one year, at a time), provided the performance is found to be
satisfactory on review and on sole discretion of TIIC, with not be more than 10%
/without increase in professional/audit fee. 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 a written notice of 15 days.

19. Security Deposit

a) On receipt of the Letter of Award from TIIC, the successful Tenderer should
remit a Security Deposit (SD) of Rs.15000/- or One month professional/audit
fee which ever is higher, in the form of a Demand Draft or Bank Guarantee
drawn on any Indian Nationalized/Scheduled Commercial Bank in favour of
“The Tamilnadu Industrial Investment Corporation Limited”, payable at
Chennai within 5 (Five) working days from the date of receipt of letter of award.
The holding period of the Security Deposit shall be till a period of 90 days
beyond the completion of the services by the Tenderer.

b) The EMD shall be returned to the successful Tenderer when the Tenderer
furnishes the Security deposit and signs the Agreement.

c) If the Security Deposit amount is not paid or the contact/agreement is not
signed within the time stipulated, the EMD remitted by the Tenderer shall be
forfeited, besides cancelling the communication of award of the Tender.

d) Security Deposit amount remitted will not earn any interest.

20. Service Level Agreement / Agreement

The successful Tenderer should execute a Service Level Agreement (SLA) /
Agreement as may be drawn up to suit the conditions on a non-judicial stamp

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paper of value, as prescribed in law on the date of remittance of Security
Deposit and shall pay for all stamps and legal expenses incidental thereto. In
the event of failure to execute the agreement, within the time prescribed, the
EMD/SD amount remitted by the Tenderer will be forfeited besides cancellation
of the Tender.

21.Force Majeure

a) The successful Tenderer shall not be liable for penalty or termination for default
if and to the extent that it’s delays in performance or other failure to perform its
obligations under the Contract is the result of an event of Force Majeure.

b) For purposes of this clause, “Force Majeure” means an event beyond the control
of the tenderer and not involving the successful Tenderer’s fault or negligence,
and not foreseeable. Such events may include, but are not restricted to, acts of
the TIIC in its capacity as a buyer, wars or revolutions, terrorist attacks, fires,
floods, epidemics, quarantine restrictions, freight embargoes and other acts of
God. The decision of TIIC shall be final in this regard.

c) If a Force Majeure situation arises, the Tenderer shall promptly notify the TIIC
in writing of such condition and the cause thereof. Unless otherwise directed by
the TIIC in writing, the tenderer shall continue to perform its obligations under
the Contract as far as is reasonably practical and shall seek all reasonable
alternative means for performance not prevented by the Force Majeure event.

22. Deliverables

All the documents as per the deliverables should be submitted both in hard copies
3 Sets and in soft copies (in PDF) by the Concurrent Auditors as per the indicated
frequency as below:

Deliverables To be sent to Frequency
Flash Reports Head Office, IA Dept. Monthly, before 7th of
every month
Unit Inspection Report Respective Branch Monthly, before 7th of
Manager, RA Head /RM & every month
Physical Verification of Head office IA Dept.
assets Report Respective Branch Monthly, before 7th of
Audit Report Manager,RA Head /RM & every month.
Head office IA Dept.
Feed-back Report Respective Branch Quarterly, before 10th of
about compliance of Manager, RA Head /RM & succeeding month
audit by branches Head office IA Dept.
Head office IA Dept. Bi-annually, before 15th
of November/May every
year.

♦ The Attendance Certificate duly certified by Branch Manager shall be
submitted for payment of fees. Otherwise payment shall not be made.

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♦ The audit firm shall follow time norms for completing the Audit and
submitting the Audit report to Branch/Head Office (IA Dept). If there is any
delay in submission of the report, 10% of the monthly audit fee will be
deducted without any further reference to the Auditor.

♦ Over and above this, Audit Report is required to include immediate
reporting of high risk issues to TIIC and the corrective action initiated by
TIIC in that regard.

♦ Audit reports shall also include review of Action Taken Reports(ATR) and
escalation of delays in action taken, if any.

23. Penalty

Monthly reports shall be submitted within 7 days from the end of month.
Quarterly reports shall be furnished 10 days of the completion of the quarter.
Bi Annual reports are to be furnished within 15 days of the completion of HY.

If the reports are not furnished within a grace period of 7 days from the end
of due dates, 10% of audit fees would be deducted from the fees payable. .

24. Termination of Contract

TIIC may, at its sole discretion and at any time after giving 15 days notice can
terminate the Contract and inform the CAs of TIIC’s decision by written instruction
to that effect. In the event of the Contract being so terminated, the firm/ LLP shall
take such steps as are necessary to bring the Services to an end, (including
terminating any sub-contracts placed by the firm/ LLP) in a cost effective, timely
and orderly manner. This will be in addition to TIICs right to allot the contract to
another tenderer at the risk and cost of the successful Tenderer.
No further correspondence will be entertained in this regard.

25. General Terms & conditions:

• It is expected that the selected firm will have necessary expertise,
experience, capabilities and knowledge in the area, which shall broadly cover
the areas listed below. The listing is not exhaustive and should be regarded
as an outline only. The objective is to provide “best in Class” Concurrent
Audit services to TIIC. Brief roles of the selected Concurrent Auditor are
mentioned below:

• Conduct of Concurrent audit for TIIC covering branches/operating units as
per the scope of concurrent audit decided by TIIC which is mentioned in
Sl.No.2 of RfP-Broad scope of services for the concurrent auditor.

• Consolidation of audit findings over a period to identify process
improvement opportunities and control gaps.

• Provide suggestions addressing process improvement opportunities and
controls gaps to the Management.

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• The applicant appointed as concurrent auditor shall nominate a CA or retired
bank officer(Team leader) who will head the concurrent audit team as the
"Designated Team Leader" duly authorised by the FCA partner of the CA
firm/LLP to act on behalf of the firm. The Designated Team Leader would be
required to submit his/her identity proof and address proof together with
specimen signatures.

• The team leader allotted for audit of a branch/Head office, should not be
changed without the approval of TIIC and if any changes are necessary to be
made by the CA firm/Company, should be done only with the prior written
approval of the TIIC.

• The audit team composition for Concurrent Audit and attendance
requirements should be specified as under:

a) The designated FCA partner of the firm / LLP who shall visit the branch office at
least 4 days in a month.

b) Chartered Accountant / Retired Bank/Financial Institution Official / Designated
Team Leader who shall visit the branch preferably on all working days but for a
minimum of 15 days in a month.

c) Chartered Accountant / Retired Bank/ Financial Institution Official / Designated
Team Leader who lead the concurrent team should have the authority to sign off
the disbursement notes.

d) Audit assistant who shall visit the branch preferably on all working days but for
a minimum of 15 days in a month.

• A declaration to be furnished by the applicant that credit facilities availed by
the firm or partners or firms in which they are partners or directors including
any facility availed by a third party for which the firm or its partners 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 / RBI guidelines.

• The applicant must submit an undertaking that the firm / LLP 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 acts as the concurrent
auditor for TIIC.

• On appointment, the Applicant shall execute an undertaking of

fidelity and secrecy on its letterhead in the format prescribed by the Bank.

• The concurrent auditor should adhere to the audit coverage strictly as per
the scope as may be decided by the Bank from time to time.

• The concurrent auditors should not undertake any other activities /
assignment on behalf of the branch without obtaining the concurrence of the
Audit & Fraud Management Vertical at Head Office, in writing.

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• The concurrent auditor should immediately report Internal Audit
Department (Head Office) as also to the Chief Vigilance Officer as well as
Branch Managers concerned (unless the branch manager is involved), if any
fraudulent transactions are detected.

• The concurrent auditor should attend Preventive Vigilance Committee (PVC)
in the Corporation which discusses and deliberates on various operational
and administrative aspects concerning Vigilance administration in the ROs/
BOs. The meeting of the PVC takes place at least once in a quarter in the
succeeding month of every quarter at the concerned Corporate Office of the
Bank.

• The concurrent auditors will co-operate with investigative body, regarding
processing or execution of the consultancy contract or any matter related with
discharge of contractual obligations.

• No out of pocket expenses or traveling allowance / halting allowance would
be paid to the concurrent auditors for carrying out the audit. However, the
service tax, education cess / GST etc. 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 at appropriate rates.

• Necessary arrangement would be made for providing space, workstation an
access to systems (viewing rights only) to the concurrent auditors for
ensuring smooth conduct of the audit. This would be the responsibility of
the TIIC. The Branch-incharge will shoulder the responsibility of the
arrangements.

• The Applicant shall ensure that the audit firm/ LLP or any sister / associate
concern, is not conducting the statutory audit of the TIIC or any of its
branches.

• The Applicant shall ensure that the audit be carried out in a professional
manner and if any serious acts of omission or commission are noticed in their
working, the appointment shall be cancelled after giving reasonable
opportunity to be heard and the facts shall be reported to ACB /RBI / ICAI
any other authority, for suitable action thereon by them.

• The Applicant shall ensure that it will not sub-contract the audit work
assigned to any outside firm/ LLP or other persons even though such
persons are qualified Chartered Accountants.

• The concurrent auditor shall be granted read only viewing access to the
systems at the branch office.

• The concurrent auditors are required to plan the audit 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 major deficiencies/aberrations noticed during audit should
be immediately brought to the notice of Head Office/Controlling Office of the
concerned branch/business unit of the bank.

• The concurrent auditor shall daily go through all the vouchers and books

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of the branch for the previous day and identify areas to be scrutinised in
detail.

• Should maintain and keep back up papers in support of observations
made.
• Any other terms and conditions of the assignment would be decided by
the TIIC on a case-to-case basis.

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.

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 / RfP).

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 an application, decision will then be made by
TIIC.

Indemnity
The successful applicant shall exercise reasonable skill, care and diligence in the

40 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

performance of the assignment and indemnify and keep TIIC indemnified in respect
of any loss, damage or claim howsoever arising out of or related to breach of
contract, statutory duty or negligence by the firm/ LLP or its staff, agents or sub-
contractors in relation to the performance or otherwise of the Services to be
provided under this Contract.
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 take over, 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.

26. Other Conditions

(a) Conditional proposal in any form will not be accepted and the such tenders will
be summarily rejected.

(b) TIIC reserves the right to relax or waive or amend any of the RFP conditions.

(c) The right of final acceptance of the proposal is entirely vested with TIIC and
reserves the right to accept or reject any or all the Tenders in part or in totality
or to negotiate or to withdraw/ cancel/ modify this proposal without assigning
any reason whatsoever.

(d) After acceptance of the proposal by TIIC, the Tenderer will have no right to
withdraw his proposal.

(e) The successful Tenderer shall not directly or indirectly transfer, assign or sublet
the contract or any part, share or interest therein nor shall take a new partner
without written consent of TIIC provided nevertheless any such consent shall
not relieve the Tenderer from any obligation, duty or responsibility under the
contract.

(f) Any notice regarding any problems, to the Tenderer shall deemed to be
sufficiently served, if given in writing at his usual or last known place of
business.

(g) In the course of discussion and instruction TIIC may disclose information of
confidential and proprietary nature, knowhow, to the Tenderer. Such
information shall be considered as confidential and shall not be disclosed in
any firm.

(h) At any stage, even after award of contract, if information/basic eligibility criteria
found by TIIC to be not fulfilled, the contract/agreement with the CA
firm/Company will be terminated and the firm/company will be disqualified for
5 years.

41 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

27. Arbitration

(a) In case of any dispute in the proposal, including interpretation if any on the
clauses of the bid or the agreement to be executed, the matter shall be referred
by TIIC/ Successful Tenderer to an arbitrator who shall be selected by the
Tenderer from the panel of arbitrators approved by TIIC within 15 days from the
date of receipt of the letter from the TIIC along with the panel of arbitrators. If
there is no reply from the Tenderer within 15 days, TIIC shall choose any of the
arbitrators from the panel of arbitrators referred to above. The remuneration for
the arbitrator and other expenses shall be shared equally by TIIC and the
Tenderer.

(b) The venue of the Arbitration shall be at the Head office of TIIC, Chennai. The
decision of the Arbitrator shall be final and binding on both the parties to the
Arbitration.

(c) The Arbitrator may with the mutual consent of the parties, extend the time for
making the award. The award to be passed by the Arbitrator is enforceable in
the Court at Chennai city only.

28. Jurisdiction of the Court

Any dispute arising out of the RfP / tender process, non-fulfillment of any of the
terms and conditions of Agreement signed by the Successful Tenderer or any other
dispute arising out of the arbitration award will be subject to the jurisdiction of the
Courts in the City of Chennai only.

SIGNATURE OF THE TENDERER:
DATE:
NAME IN BLOCK LETTERS:
DESIGNATION:
ADDRESS:

42 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

ANNEXURES

43 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

From ANNEXURE –I
Name Technical Proposal Covering Letter for
Address the Branch_________( Name of the branch ) / Head office
Ph ( in the letterhead of the CA firm/Company)
Fax
E-mail Date:____________

:
:
:
:

:

To
The Chairman & Managing Director,
The Tamilnadu Industrial Investment Corporation Limited,
MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035
Chennai-600035.

Sir,

Sub: Request for proposal for “Selection of Concurrent Auditor for
undertaking Concurrent audit on Operations of Branch_________
( Name of the branch ) / Head office ” -- Submission of Technical
Proposal –Reg.

Ref: Your Tender Notice Ref …………. Vide notice dt. ..........

***************

With reference to your tender notice, we submit herewith our sealed tender
for the “RFP for Selection of Concurrent Auditor for undertaking Concurrent
audit on Operations of Branch_________ ( Name of the branch ) / Head office

We enclose the following documents:

1) RFP Document duly signed in each page and enclosed with Technical
Proposal in token of accepting the Tender conditions.

2) Demand Drafts in favour of “The TIIC Limited, Chennai” towards the

following:

Sl No Particulars Amount (Rs.)

1 Tender Application Fee 1,000/- plus GST @18%

2 Earnest Money Deposit 15,000/-

44 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

3) Authorization letter/ Power of Attorney from the Tenderer for the person
to sign the proposal.

4) Details of the Tenderer (as /per Annexure-II)
5) The copy of certificate of incorporation/registration and copy of

Memorandum and Articles of Association.
6) Copy of Registration Certificate (Form-C), in case of Partnership Firm.
7) Copy of PAN allotment Certificate/ PAN CARD issued by Income Tax

Department in case of Indian Company.
8) Copy of GST Registration certificate.
9) Copy of Registration with RBI/ any Nationalised Bank.
10) The Auditor Certified Turnover statement with Annual Report / certified

copies of Balance Sheet, Profit & Loss statement for the last 3
consecutive financial years i.e. 2017-18, 2018-19 and 2019-20.
Consolidated annual turnover certificate as per Annexure III
11) Relevant experience of the Company/Firm as per Annexure-IV(c)
12) Form for Technical Eligibility as per Annexure – IV (a) and IV (b)
13) Undertaking letter of the Tenderer (Annexure-V)
14) CVs of the key personnel of the CA firm as per Annexure – VI (a) and
CVs of the staff deployed having audit experience as per Annexure VI(b).
15) Team composition and Task assigned – Annexure VII
16) Declaration for not having black listed either by TIIC or by any other
Govt. agencies as on date (as per Annexure-VIII).
17) Declaration for not having tampered the RFP documents downloaded
from the website www.tenders.tn.gov.in/www.tiic.org (Annexure-IX).
18) Notarized translated English version of the documents in a language
other than English/Tamil, if any.

Yours faithfully,

SIGNATURE OF THE TENDERER
Encl: As stated above in two separate sets
1. In Form A – sl.no.1 to 11 along with Form IV A
2. In Form B – sl.no.3 to 11 & 13 to 18 along with Form IV B

45 | P a g e
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Annexure -II

Details of the Tenderer

Sl.No. Particulars Description/Details
46 | P a g e
A Name of Tenderer

B Contact Details

Registered Office
Address

Telephone No.

Fax

Email

Website

C Incorporation Details

Incorporation Number

Date of Incorporation

Authority

D Name of Authorized

Signatory

Position

Telephone

Fax

Mobile

Email

E Number & Address of
Offices

In Chennai

Outside Chennai

F Distance of audit office
from the applying
branch/HO of TIIC (In
Km.)
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Signature of Authorised signatory

Annexure -III
ANNUAL TURN OVER CERTIFICATE

The Annual turnover of M/s.................................................... for the past
three years are given below and certified that the statement is true and
correct.

Sl.No. Year Turnover
(Rs. in lakhs)

1) 2017-2018

2) 2018-2019

3) 2019-2020

Total

Note: Annual Turnover in each of the three consecutive financial years will
be considered i.e. F.Y. 2017-18, F.Y. 2018-19 and F.Y. 2019-20.

DATE :

SIGNATURE OF THE TENDERER (Authorised Signatory)

SIGNATURE OF CHARTERED ACCOUNTANT
(With seal and Address)

47 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Annexure -IV (a)

( PART I / FORM A)
ELIGIBILITY CRIETERIA for Concurrent Audit of Branch

Operations/HEAD OFFICE
A) Audit Firm / LLP / Company Details: (TENDERER)

S. No. Requirements Compliance Remarks

The Tenderer should be a Chartered Yes/No
Accountant Firm / LLP /Company with
year of establishment.

The Tenderer should have knowledge and

1 experience in carrying out audit works and
other day to day operations.

Valid registration / Certificate of Practice
from the Institute of Chartered
Accountants of India for the firm/ company
/ LLP (furnish documentary proof).

Whether the firm / LLP / Company is Yes/No

2 empanelled with RBI / any Nationalised
Bank (furnish documentary proof) and

its validity is in currency.

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
3 operations of the Financial Institution /
bank (furnish documentary proof of the
the award and completion certificate
from the Bank/Financial Institution
concerned).

Regular set-up, either Head Office or full- Yes/No

fledged Branch Offices at respective

locations (locally) of TIIC branches (furnish

4 the details regarding branch offices, if
any) subject to verification by TIIC. If

found to be false, such tenderer will be

summarily rejected and next tenderer in

reserve will be considered.

48 | P a g e
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Be the CA Firm / Company with minimum

5 Annual Turnover of Rs.20.00 lakhs in Yes/No
FY 19-20 (Audited financial statements

for the FY 19-20 shall be enclosed

Note: All the relevant details & documentary evidences are to be
furnished. The above is only a format. Information may be
submitted in additional sheets.

SIGNATURE OF THE TENDERER

49 | P a g e
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Annexure -IV (b)
Format for CA Firm’s Technical Evaluation

( PART I / FORM B)
Technical Evaluation for Concurrent Audit of Branch Operations
B) Audit Firm / LLP / Company Details: (TENDERER)

S. No. Requirements Compliance Remarks

1(a) Name of the Chartered Accountant Firm / Yes/No
LLP / Company with Date of establishment Yes/No

(b) Whether CA firm/LLP/Company have
minimum 3 partners/directors (Furnish

documentary Proof)

2 Be the firm with Knowledge and experience Yes/No
in carrying out audit work and other day to
day operations for a minimum 3 years
(Furnish documentary Proof)

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 as per format
given in – Annexure VI).

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 details in Annexure IV(c)
alongwith the documentary proof of the
award completion certificate from the
Bank/Financial Institution concerned).

Valid registration / Certificate of Practice Yes/No

5 from the Institute of Chartered
Accountants of India for the firm/ company

50 | P a g e
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6 (a) / LLP (furnish documentary proof). Yes/No
(b) Yes/No
7(a) Whether the firm / LLP / Company is Yes/No
empanelled with RBI / any Nationalised
7(b) Bank (furnish documentary proof and its Yes/No
8(a) validity in currency) Yes/No
Yes/No
9 Whether empanelled with CAG (Furnish Yes/No
10 documentary proof)

Availability of suitable infrastructural
facilities including office set up, adequate
manpower-minimum 3 (other than
partners/directors) 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. Team Leader
should be a qualified CA/retired official of
Bank/Financial Institution not less than
cadre of Manager and other Team Member-
furnish (CV as per format given in
Annexure – VI(b) and annexure VII) for
Team Compositions.

The audit team shall visit branch/HO of
TIIC on daily basis/in any case not less
than 15 days in a month. The
partner/director shall visit the branch/HO
of TIIC at least once in a week / not less
than 4 days in a month or as and when
required by the Corporation

Regular set-up, either Head Office or full-
fledged Branch Offices at respective
locations (locally) of TIIC branches (furnish
the details regarding branch offices, if
any) subject to verification by TIIC. If
found to be false, such tenderer will be
summarily rejected and next tenderer in
reserve will be considered.

The firm / LLP / Company shall ensure
that the audit firm / LLP / Company or
any sister / associate concern is not
conducting the statutory audit of TIIC
(undertaking to be given).

The firm / LLP / Company shall agree to

51 | P a g e
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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 per the enclosed Annexure
XIVa, XIVb and XVI) prescribed by the
Corporation, if the contract assigned.
(Declaration to be enclosed)

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 its sole discretion report the matter to
ICAI/RBI/CAG as it may deem necessary.
(undertaking to be given).

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 (undertaking to be given).

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
assignment would get terminated besides
the firm being liable for any action under
ICAI / RBI guidelines (undertaking to be
given).

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

52 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

the concurrent auditor for TIIC
(undertaking to be given).

Be the CA Firm / Company with minimum

15 Turnover of Rs.20.00 lakhs in FY 19-20 Yes/No
(Audited financial statements for the FY

19-20 shall be enclosed- Annexure III)

Note: All the relevant details & documentary evidences are to be
furnished. The above is only a format. Information may be
submitted in additional sheets.

Necessary undertakings called for the above at 9,10,11,12,13
& 14 shall be given in the letter head of the CA
firms/LLP/Company either individually or combined together
as per Annexure-V, shall be enclosed.

SIGNATURE OF THE TENDERER

53 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Annexure - IV (C)

Format for Firm’s Relevant Experience for
Technical Evaluation

( PART 1 - Annexure to Form B)
C) 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##

S. No. Name of the Bank Branch Year of Audit / Period
/ Financial
Institution (From - To)

[Data required Since
establishment of your firm]

2. Details of Concurrent Audits of various banks’ branches /
Financial Institutions ##

S. No. Name of the Bank Branch Year of Audit / Period
/ Financial
Institution (From - To)

[Data required Since
establishment of your firm]

## Documentary evidences duly signed by Authorised Signatory of the
tenderer shall be enclosed without fail.

54 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

ANNEXURE-V

UNDERTAKING

(To be furnished in the letter head of CA firm/LLP/Co.)

I/We, on behalf of the firm/LLP/Company, further declare and
undertake the following:

a) None of our partners / directors / shareholders is an officer / employee

of your Corporation.

b) 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.

C) We also confirm that we are full time practising Chartered
Accountants/ and are Partners /Directors of the applicant firm/Company
and are not employed elsewhere.

d) The firm / LLP / Company or any sister / associate concern is not
conducting/ the statutory audit of TIIC at present.
e) The firm / LLP / Company undertakes to carry out the audit in a
professional manner and in case of any misconduct & negligence, the
Corporation is its sole discretion report the matter to ICAI/RBI/CAG as it
may deem necessary.
f) The firm / LLP / Company undertakes 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
g) The firm / LLP / Company undertakes that credit facilities availed by the
firm / LLP or its partners or Company or its directors or firms or LLPs or
companies in which we 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 assignment would get terminated besides
the firm being liable for any action under ICAI / RBI guidelines.
h) The firm / LLP / Company undertakes 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.
i) We also confirm that we will not give any room for disqualification during
the course of audit for any of the reasons mentioned above.

55 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
j) We hereby confirm that we fully satisfy the eligibility criteria prescribed
by TIIC by applying for audit of operations of Branch Offices/Head Office of
TIIC and if found ineligible at any point of time, out contract will be
cancelled and security deposit will be forefeited.

SIGNATURE OF THE TENDERER
(Partner of Firm/LLP/ Director of Company)

56 | P a g e
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Annexure -VI (A)
Curriculum Vitae for Key Personnel
Curriculum Vitae for proposed Professional Staff (Partners)

Sl.

No Details

.

1 Proposed Position [only one candidate shall be
nominated for each position Expert]

2 Name of Partner / Director [Insert full name]

3 Date of Birth

4 Nationality

Education[Indicate college/university and other

5 specialized education of staff member, giving names of
institutions, degrees obtained and dates of

obtainment]

6 Total No. of years of experience

7 Total No. of years with the firm

8 Areas of expertise and no. of years of experience in this
area (as required for the Profile - mandatory)

9 Certifications and Trainings attended

10 Details of Involvement in Projects (only if involved in
the same):

11 Membership of Professional Associations

Employment Record [Starting with present position list

12 in reverse order, giving for each employment (see
format here below): dates of employment, name of

employing organization, positions held]

From : To:

Employer :

Position(s)
Held :

13 Pan No.

14 Aadhar No.

15 Work Undertaken That Best Illustrates Capability to Handle the
Tasks Assigned

Name of the Assignment :

57 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office
Year :
Location :
Main Project Features :
Positions Held :
Activities Performed :
I, the undersigned, certify that to the best of my knowledge and belief, this
CV correctly describes me, my qualifications, and my experience. I
understand that any willful misstatement described herein may lead to my
disqualification or dismissal, from the assignment if engaged.
______________________________________________________ Date:______________
[Signature of staff member or authorized representative of the
staff]Day/Month/Year

58 | P a g e
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Annexure VI (B)
Curriculum Vitae for Employees/Audit staff

Curriculum Vitae for Team Leader

Sl.

No Details

.

1. Proposed Position [only one candidate shall be
nominated for each position ( Team Leader )

2. Name of Staff [Insert full name]

3. Date of Birth

4. Nationality

5. PAN No

6. Aadhar No

Education[Indicate college/university and other

5. specialized education of staff member, giving names of
institutions, degrees obtained and dates of

obtainment]

6. Total No. of years of experience

7. Total No. of years with the firm

8. Areas of expertise and no. of years of experience in this
area (as required for the Profile - mandatory)

9. Certifications and Trainings attended

10. Previous audit experience in Firm/Banks/FIs (Name
/ Period)

11. For retired bank /FI official, details of experience in
the cadre of Manager and above

I, the undersigned, certify that to the best of my knowledge and belief, this

CV correctly describes me, my qualifications, and my experience. I

understand that any willful misstatement described herein may lead to my

disqualification or dismissal, from the assignment if engaged.

______________________________________________________ Date:______________
[Signature of staff member]Day/Month/Year

59 | P a g e
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Annexure VII
TEAM COMPOSITION AND TASK ASSIGNED

Tasks

proposed

to be

Resource Name of Qualification Area of Assigned
Category Staff & experience Expertise
as part of

the

assignme

nt

Team Leader
Team Member

SIGNATURE OF THE TENDERER

60 | P a g e
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Annexure -VIII

CERTIFICATE

Date: __________

Certified that M/s.........................................................../ the firm
/company or its partners / shareholders have not been black listed so far
by TIIC or any State or Central Government of India /Bank /Financial
Institution in India as on date.

SIGNATURE OF THE TENDERER
(with seal and address)

61 | P a g e
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Annexure IX

Declaration Form (A)

Date: __________

a) I/We ……………………………………………………………………. having
our office at ……………. do declare that I/We have carefully read all the
conditions of tender made available to us by TIIC, for the tenders floated
vide tender ref.no._____________________ for the “Selection of Concurrent
Auditor for undertaking Concurrent audit cum internal audit on Operations
of branches of TIIC/Head office”.

b) I/We have downloaded the tender document from the internet site
www.tenders.tn.gov.in / www.tiic.org and I / We have not tampered /
modified the tender document in any manner. In case, if the same is found
to be tampered / modified, I/ We understand that my/our tender will be
summarily rejected, and full Earnest Money Deposit will be forfeited and I
/We am/are liable to be banned from doing business with TIIC or
prosecuted.

SIGNATURE OF THE
TENDERER

(WITH SEAL AND ADDRESS)

62 | P a g e
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Annexure X

TENDERER’S REQUEST FOR CLARIFICATION

Name and Address of Name and Position of Contact Details of the
the Person
Organization /
Organization submitting request Authorized
submitting
Representative
Request

Tel: _______________

Fax: ______________

Email:<email id

Sl. Reference(s) Content of Tender Points of
No. (Section, Page) requiring clarification

1 Clarification required
2
3

SIGNATURE OF THE TENDERER
(WITH SEAL AND ADDRESS)

63 | P a g e
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Annexure XI – Financial Proposal
FINANCIAL PROPOSAL (PART II)
Financial Proposal Covering Letter for
the Branch_________( Name of the branch ) / Head office

From,

Name :

Address :

Ph :

Fax :

E-mail :

To,

The Chairman & Managing Director,
The Tamilnadu Industrial Investment Corporation Limited,
MHU Complex, 692, Anna Salai, Nandanam, Chennai - 600035
Chennai-600035.

Sir,

Sub: Request For Proposal for “Selection of Concurrent Auditor for
undertaking Concurrent audit on Operations of Branch _________ ( Name
of the Branch )/Head office of TIIC- Submission of Financial Proposal –
Price Offer-Reg.
Ref:- Our Technical Proposal submitted for the above mentioned tender.

----

In continuation of our above Technical Proposal, we submit herewith the
Financial Proposal for Request for Proposal for “Selection of Concurrent
Auditor for undertaking Concurrent audit on Operations of branch
_________ ( Name of the Branch )/ Head office of TIIC as specified in this
RFP document. We agree to abide by the terms and conditions stipulated by
TIIC and also agree to complete the entire contract, at the fees quoted by us.
The fee quoted and approved by TIIC in this proposal will hold good as per
RFP conditions.

Yours faithfully,

SIGNATURE OF THE TENDERER

64 | P a g e
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Annexure XII - Price Bid (Lumpsum)

Name of Work : Request for proposal for Concurrent Audit of
Operations of TIIC branch office/ Head office

Financial Proposal (PART II)

Name of the Branch / Head Office: -------------------

Description Total fees GST Total (inclusive
(INR) of all taxes in

Per month INR)
For 12 months.

Lumpsum fees for

undertaking (Concurrent)

Audit of Operations of

TIIC’s branch

Offices/Head office and

furnishing connected

reports as required by

TIIC.

Note:

Lump sum fee for

providing services

including out of pocket

expenses and all other

expenses.

(Amount in Words Rupees ……………………………………………………….
…………………………………………………………………………………………………
……………………………………………………………………………………………….)

Yours faithfully,

Signature of the Tenderer.

65 | P a g e
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Annexure XIII

Checklist of Documents
Documents to be enclosed in Part-I:

Sl. Checklist Enclosed Reference in
No. (Yes/No) the Bid

(Page No.)

A covering letter on letter head of

1. Tenderer addressed to The Chairman
& Managing Director, TIIC (As per

Annexure-I)

RfP document duly signed in each

2. page and enclosed in token of

accepting the RfP conditions.

Demand Drafts in favour of “The TIIC

Limited, Chennai” towards the

following:

Sl Particulars Amount
No (Rs.)
3. 1 Tender
1,000/-

Application Fee plus GST

@18%

2 Earnest Money 15,000/-

Deposit

Authorization letter/ Power of Attorney
4. from the Tenderer for the person to

sign the proposal.

5. Details of the Tenderer (as per
Annexure-II)

The copy of certificate of
6. incorporation/ registration.

Copy of Registrar Certificate in case of
7. Partnership Firm.

Copy of PAN allotment Certificate/

PAN CARD issued by Income Tax
8. Department in case of Indian

Company

9. Copy of GST Registration certificate.

Copy of Registration with RBI/ any
10. Nationalised Bank.

66 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

a) The Auditor certified Turnover
statement along with Annual Report /
certified copies of Balance Sheet, Profit
& Loss statement for the last 3
11. consecutive financial years i.e.
2017-18, 2018-19 and 2019-20.
b) Consolidated annual Turnover
certificate (Annexure-III)
Relevant experience of the
12. Company/Firm as per Annexure IV (C)

Form for Technical Eligibility as per
13. Annexure IV (a) Form A & IV (b)Form B

a) CVs of key personnel / professional
staff (Minimum 2 practising CAs) –
Annexure VI(a).

b) CVs of the Team leader to be
14. deployed (CA/Retired Bank Employee

not less than the rank of Manager) –
Annexure VI(b)

c) Team composition and task

assigned(Annexure VII)

Declaration for not having black listed

either by TIIC or by any other govt.
15. agencies as on date (as per Annexure-

VIII).

Declaration for not having tampered

the Tender documents downloaded

16. from the website

www.tenders.tn.gov.in/www.tiic.org

(as per Annexure-IX).

Notarized translated English version of
17. the documents in a language other

than English/Tamil, if any.

Documents to be enclosed in Part-II

Sl. Checklist Enclosed
No. (Yes/No)

1. A covering letter on the letter head addressed to 67 | P a g e

The Chairman & Managing Director, TIIC(as per

Annexure-XI)

2. Price Bid as per Annexure-XII of the Tender
document
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Sl. Checklist Enclosed
No. (Yes/No)

3. Declaration as per format given above - (XIV(a))

4. Declaration of fidelity and secrecy - (XIV(b))

5. Proforma letter of Acceptance - (XV)

6. Letter of confirmation regarding non
disqualification of audit firm/LLP/Company --

(XVI)

7. Do’s and Don’ts for Concurrent Auditors – XVII

Note: Tenders submitted in unsealed cover would summarily be
rejected.

SIGNATURE OF THE TENDERER

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ANNEXURE – XIV (A)

Declaration

We have reviewed all the terms and conditions of the Tender
document and would undertake to abide by all the terms and conditions
contained therein.

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 proposal / tender is liable to be rejected.

I / We hereby declare that there are, and shall be, no deviations from
the stated terms in the Tender / RfP Document.

Signature of Tenderer with Company seal.

Note:

1. The rate shall be quoted as per the above format. Taxes should be
indicated separately.

2. The rates shall be quoted in figure and words.

3. Conditional tenders will not be accepted, and value once fixed shall be
valid for the entire period of the contract.

4. In case of discrepancy in the bid quoted between figures and words, the
lowest will prevail.

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Annexure XIV(b)

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

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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:

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Annexure XV
(Proforma Letter of acceptance to
be obtained on firm’s Letter head)

Date: __/__/____
To
The Head of the Dept. of IA & ISO Dept.,
The Tamilnadu Industrial Investment Corporation Ltd,
No. 692, Anna Salai, Nandanam,
Chennai – 600 035.

Dear Sir,

Sub: Concurrent Audit on Operations of _________
Branch/Head Office.
-------------------

With reference to your letter No. TIIC/HO/IA/2021-22 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.

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Annexure XVI
Letter of confirmation regarding
Non-disqualification of Audit firm / LLP / Company
(to be submitted on letter head)
To
The Head of the Dept. of IA & ISO Dept.,
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/2021-22 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

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Annexure XVII

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

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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.

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
office/officials.

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 auditor’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.

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Annexure XVIII

Date :

FLASH REPORT

Name of the CA Type of Audit
Name of Branch
Period of Audit

Audit conducted
during

The major observations indicated in the Audit Report dated __________
are given below:

1) Frauds / Serious Lapses

a)

b)

c)

2) Revenue Leakages

a)

b)

c)

3) Deviations in DoP

a)

b)

c)

4) Any other major observations

Signature of Concurrent Auditor.
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Annexure XVIX

UNIT INSPECTION REPORT

1. Name of the Branch Thiru.
2. Name of the Audit Official

3. Date of Inspection
4. Name of the Unit
5. Location: Factory:

Office:

6. Type of the Unit ( Rs.in lakhs)
(or nature of Business)

7. Name of the Proprietor
8. Category/Asset

Classification of the unit
9. Information on working

results
As ascertained from the unit
A i) Monthly Turnover
ii) Monthly Expenses
iii) Surplus / Net Profit

B Previous year working 31/03/ (Rs. in lakhs)
results (if available)
Working Results
Turnover
Net Profit
Cash Profit

Liabilities:
Capital
Reserves & Surplus
Secured Loans – TIIC

- Bank
- Others

10. Details of Insurance cover Insurance valid up to / / for

and Rs. lakhs.

Its adequacy

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11. Details of Loan Account Position: As on / /
(Rs. in lakhs)

A/C No. Date of Amount Amt. Pl. OVERDUES
Prl. Int. Others
Sanction Sanctione Disbursed O/s

d

12. Details of Working Capital Facilities enjoyed

A. Name and Address of the
Bank

B. Facility enjoyed
C. Whether they are regular in

Meeting the commitment of
the Banker

D. Asset Category in Bank

13. Is the unit working on Single/Two/Three shifts

14. Whether all the assets Funded are available

15. Sales during last 3 months Rs. lakhs

16. Power consumed in Last 3 months

17. Number of workers on Rolls Admn.
Nos
Skilled labours
Nos
Unskilled
Nos

18. The Inspection Official shall furnish the details such as:-

Installed Actuals

Capacity (Rs. in (Rs. in lakhs)

lakhs)

a) Present utilization capacity

b) If it is below the capacity

assumed at the time of

sanction reason be indicated

for the same

c) Whether project is

implemented as envisaged

in the scheme

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d) Is the unit attempting any
expansion

19. In case of overdues, reason or problem

in servicing the loan :

i) Diversion of funds }

ii) Lack of Orders }

iii) Dispute between promoters }

iv) Any other reasons }

20. Any other remarks by the Audit Officials/

Overall observation in brief :

CONCURRENT AUDITOR

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ANNEXURE - XX

Audit report for the period(from ________ to ________)

Assets Verification for which disbursement made from _______ to _____-

Branch :

Physical verification by:_______________________(name and Designation of auditor )

S. Name Typ Date/ Disburseme Date Amt Cumula Details of Date of Availability Remark
L. of the tive assets inspecti of assets s
N unit e of Amo nt note of disb disbd on
o Yes/no
loa unt Disbm d

n sanc t

tione No Date

d

CONCURRENT AUDITOR

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ANNEXURE - XXI

AUDIT REPORT FORMAT -- (BRANCH)

Confidential

Brief on Audit :

1 Name of the Branch / Region

2 Name and Designation of
Branch In-charge

3 Audit for the period of
4 Audit team members
5 Audit Duration

INTRODUCTION

(i) Staff position of the BO as on ________(at the end of audit period)
(including temporay staff)

S.no Name of staff Designation Work allotted

(ii) Branch Performance

Previous audit period ended Rs. in lakhs
Current audit period ended
on( )
on( )

Annual Actual % Annual Actual %

Target Target

Sanction TL

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BFS
Disbursement TL

BFS
Recovery – Principal

- Interest
-Written off principal

(iii) Asset portfolio Opening as on _____ Rs in lakhs
S.no Asset type (beginning of audit Closing as at the end of
period) __________
No of Amount (Audit period)
units O/s No of Amount
units O/s

1 STD

SMA 0

SMA 1

SMA 2

2 S.STD

3 D I

4 D II

5 D III

6 LOSS

7 W.OFF

TOTAL

(iv) Fresh NPA Slippage during audit period(Standard to Sub Standard):
( individual case wise)

S.n Name of the unit Prin Overdues Rs in lakhs
o cipal Action Audit
O/s Prl Int Other taken by observation
dues B.Office s

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(v) The Audit of ______(Name of auditee office) was conducted by ____(Name of
Auditor) comprising Shri/Smt. _____________(names and designations of members
of Auditor) during the period from ____________to_______, as per the audit
schedule

(vi) All audit observations of Part A and Part B were discussed by the Audit officials on
______(date of holding concluding discussion) in detail with Shri_________, (name
and designation of In-charge) of _________(name of auditee office / HO
Department), in the presence of ________________,(other officials with names and
designations who were present during discussions). The BO / FO In- charge agreed
with all/ all (except those enumerated in the appendix) audit observations and
assured compliance thereof in a time bound manner. The views and comments of
BO officials on major audit observations, wherever required, have been suitably
incorporated in such observations. The audit report in Part A and Part B is
appended.

(vii) Further, the uncomplied audit observations of the previous period (s) (if any)
along with latest compliance furnished by the auditee office were also discussed with
the in-charge of the auditee office whose comments on / reasons for not furnishing
full compliance of these pending audit observations are given in below

Period of audit Pending query Present stage Reason for Auditors remark
pending as per
auditee
statement

.

Auditor may please note the following for (c) above :
All pending audit observations [audit period wise ] may be listed as per format with the status of
latest compliance obtained from the auditee office and further course of action proposed /
suggested by the Auditor concerned.
Further, these pending observations may specifically be discussed with in-charge of the
auditee office for early compliance

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The difficulties / practical problems being faced by the auditee office in furnishing full and
satisfactory compliance may also be briefly mentioned by auditor in the report.

(viii) Observations complied during the course of the audit :

Audit observations corrected / complied with by the auditee office during the course
of current audit are given below.

Area of audit Audit observations Correction/compliance Auditors remark
carried out
(Subject nameand

S.No)

[It is reiterated that audit team should endeavour to get maximum number of audit observations rectified /
complied during course of the audit itself].

Branch Office’s responsibility:

(1) Branch Office to initiate rectification process immediately and submit the initial
compliance report within 7 days to respective IAD Office.

(2) The copy of this report duly signed to be kept with In-charge of the BO for
future references, treated as confidential, to be used for the intended purpose
only and the circulation of the report should be limited to the recipients of the
report.

Signature of Auditors Signature Of Auditee Office
(Name/s, Grade & Signature)

(Auditor) (Branch In-charge)

Place:
Date:

Enclosures:
Part A,Part B
Appendix I ,Appendix II,Appendix III
Others (if any)

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Part A

1. Sanction

1.1.a)Sanctions during audit period from ______ to ______

Rs in lakhs

Sl. Name of the unit Date of Assistance Scheme Sanction Availability Terms Present KYC
No. Sanction sanctioned Authority of minutes and status compliance
Documented/ Yes/no/partly
(Rs.lakh) Yes/No conditions Disbursed
issued on /lapsed

1.1.b) Observations - individual case wise

Sl. Name of the unit Audit observations Branch office Reply
No.

Note: Auditor may include comments on a) The master data updation for sanction
cases in the applicable software are carried out and verified for it’s correctness
(In case, there are no shortcomings in the areas under 1.1 (a) and (b), the following
paragraph may be added in the report).

"Appraisal Note and other papers pertaining to sanction of financial assistance
in the above cases have been perused by the audit team and found to be
generally in order as per the Corporation’s credit policy and guidelines /
instructions and other circulars issued by HO from time to time.”

If there is no deviation, please mention that “No specific deficiency/
shortcoming has been observed”.

1.2.a) Closure / Rejection of Cases [ under all scheme of assistance]

Details regarding loan proposals, which were rejected / closed by the BO/FO during the audit
period along with reasons therefor in brief are given below.

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Sl. Name of Nature of Date of Loan Scheme Proposal Date of Date of Reasons
No. the unit activity receipt of applied Rejected(R)/ Rejecting Rejection advising for
proposal Temp. Closed Authority the party Rejection
(Rs.
lakh) (TC)

1.2.b) Audit observations, if any individual case wise

Sl. Name of the unit Audit observations Branch office Reply
No.

1.3.a) Reporting of relaxations

Details of relaxations in the areas of sanction/Disbursement during audit period

S.No Name of the unit Brief Detail of Approved Whether informed
relaxation by to the concerned
sanctioning
authority

Note: If for relaxations during previous audit periods, informed to sanction authority during
current audit, the same may also be indicated above

1.3.b. Individual case wise observations by audit

(where relaxation made are yet to be informed )

Sl. Name of the unit Audit observations Branch office Reply
No.

2. Loan Documentation / Security Creation during audit period

Security was created in respect of the following units at BO during the audit period from

________ to ________.

2.1 a) Documentation abstract

Details of cases documented/Final security created during the period of audit

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Sl. Name of the Date of Assistance Date of Date of Final Security Creation
Sanction sanctioned Issue of Documen Date
No. unit T & C tation
(Rs.in lakh) Dt of
RM/ ROC CERSAI
EM

2.1.b)Observations –individual case wise

(cases where the time gap is more than 3 months between the date of issue of sanction letter
to date of documentation / between date of documentation to final security creation)

Sl. Name of the unit Audit observations Branch office Reply
No.

3. Issues relating to disbursement

Disbursements were made in respect of the following units at BO during the audit period
from____________ to___________.

3.1.a) Disbursement during audit period

(First and susequent disbursments also)

First Comment

(F)/Subs on

Sl. Date Assista Final Date of equent Disburs availabilit
No of nce Securit Disb. (S)disbu ement y of
rsement Amount
. Sancti sanctio y assets
Name of the unit on ned Creatio (Rs.lakh yes/no
n Date ( as per
(Rs.lak ) physical
h)
verificatio

n report

of Auditor

Important Note: Physical verification reports by Auditor on assets including cases where advance payment
was made as per TIIC norms in the previous months should be enclosed (as per the prescribed format(XIV-a))-
enclosed as Appendix I

3.1.b) Audit observations –individual case wise

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Sl. Name of the unit Audit observations Branch office Reply
No.

Note: Auditor may include comments on a)Asset register updation for
disbursement,availability of legal clearance certificate, lien creation over the securiy
deposit taken as security,master data capture and verification and Communication of
repayment schedule letter for first disbursement cases,

In case, no deficiency / shortcoming has been found, following paragraph may be added in
the audit report :

“Documents / papers pertaining to disbursement of financial assistance have been
perused by the audit team as per the circulars and other guidelines / instructions
issued by the Corporation from time to time pertaining to disbursement of financial
assistance. No specific deficiency / shortcoming has been observed”.

3.2.a) Undisbursed cases

(All individual cases pending for 3 months and above in both Partly and Fully undrawn)

Sl. Name of the unit Date of Assistance Date of Date of Reasons for pendancy
No. Sanctio sanctioned Document previous as reported by B.O
Disburseme
n (Rs.lakh) ation
nt

3.2.b) Observations on cases pending for more than 3 months( Individual case wise)

(cases where the time gap is more than 3 months between date of sanction to date of
disbursement / between date of previous disbursement to current date(end of audit period )

Sl. Name of the unit Audit observations Branch office Reply
No.

3.3.a) Deficiencies relating to stock statements (WCTL assisted units under all
schemes)

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Sl. Name of the unit No of units
No.

Total No of units in the portfolio

(WCTL assisted units under all schemes)

stock statement received

stock statement to be received (*)

(*) Give list of cases with reasons

In case, no observation is there, following line may be incorporated in the audit report

“ No specific discrepancy observed”.

3.3.b) Audit observations if any –individual case wise

Sl. Name of the unit Audit observations Branch office Reply
No.

4.Violation of exercise of delegated powers- individual case wise

[Pertaining to sanction, disbursement, relaxation in norms made during

the period of audit ]

Sl. Name of the Description of Audit observations Branch office Reply
violation
No. unit

Note:Auditor may list out incidents, if any, in respect of violation in exercise of
delegated powers in sanction, disbursement, relaxation in norms, etc.

In case, no such observation(s) are there, following line may be incorporated in the audit
report

“No specific observation (s)”.

5 .Asset Quality /Overdue / NPA Management and Recovery performance:
17.1 5.1. List of NPA cases

As on _________(End of audit period), BO / FO has _______ [No.] of NPA cases
amounting to Rs._______ as per asset fortfolio table given at introduction

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5.1 a) Details of top 10 NPA accounts with high pincipal outstanding and quick
motality case if any

Sl. Name of the unit category Date of principal Total Pl. overdue as at Remarks
No. viz. Sub NPA/ on action
standard O/S PRL INT Others taken to
/ recover
doubtful the dues
/loss
asset 9

1 2 3 4 5 6 7 8

A Top ten cases

Total
B Quick mortality

cases

Total

Note: Quick mortality cases: Units that have turned to NPA within 1 year from the date of final
disbursement/ during disbursement

5.1 b) Audit observations if any –individual case wise

Sl. Name of the unit Audit observations Branch office Reply
No.

5.2 a) Details of top 5 Written off accounts ( with asset back up) Principal
outstanding wise.

Sr. Name of the unit Date of principal Total Pl. overdue as at Type of Remarks
No.
NPA/ O/S PRL INT Others asset on action

available(*) taken to

recover

the dues

1 2 3 4 5 6 7 8 9

Total
(*) Land,Land and Building,Machinery and collateral security available cases.

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5.2 b) Observations of Audit on top 5 written off accounts

Sl. Name of the unit Audit observations Branch office Reply
No.

1

2

3

4

5

5.3.a) Details of Default Review Committee Meeting(DRM) conducted during audit
period and action taken on Minutes of DRM

Rs in Lakhs

Sl.No Date of DRM SMA 2 Sub std Doubtful cases

No of PRL O/S No of PRL O/S No of PRL O/S

accounts accounts accounts

reviwed reviwed reviwed

5.3.b) Audit observations, if any

Sl. Name of the Brief minutes of Particulars of Audit Branch office
Reply
No. unit DRM further action taken observations

Note:Comments of Auditor may be given on the steps taken by BO/FO for follow-up and certify
that ‘we have perused and convinced that necessary action was taken as per the last DRM
minutes’

5.4 Follow up and monitoring

5.4 a) Detailes of review of sample NPA cases

(One file under each category to be perused – (a) Restructured with in two years cases,(b)

Above 1 crore cases and (c) Written off cases with asset backed)

Rs. in lakhs

Sl. Name of the unit Date of PRL Over dues Details of

no becomin O/S PRL INT recovery

g NPA action taken

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5.4.b) Observations of Audit on sample NPA cases

Sl. Name of the unit Audit observations Branch office Reply
No.

5.5.a) BFS cases pending for more than 180 days as on the date of end of audit
period__________

Name of Bill pendancy No of Whether Details of
days counter recovery
agency Rs in Lakhs pend verific
ing action
Sl. Name of the unit TANGEDCO Disb Amt Amt ation taken
No. /TANTRANSCO date disb O/S of bill done

/TWAD etc by BM

5.5.b) Observations of Audit on BFS cases more than 180 days / 240 days

Sl. Name of the unit Audit observations Branch office Reply
No.

5.6.a) Unit inspections

(One unit under each category to be inspected- (a)Performing unit(SMA -2) ,(b) NPA and

(c) Above 1 crore by Prl O/S.)

Rs. In

Lakhs

S.no Name of the unit Availability Insurance Working Overdues

of Valid results If any
financed upto available Prl Int
assets
Upto

1

2

3

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Inspection reports enclosed as per format–enclosed as appendix II

5.6.b) Audit Observations ,if any

Sl. Name of the unit Audit observations Branch office Reply
No.

5.7. Status of units under possession

(physical / Constructive),(primary / collateral)

5.7 a) List of units under possession as on __________(end of audit period)

Sl.No Name of the Unit Type of Type of SF Date Date of Furthe
. of last r
property possession C/ poss auction action
e taken
(Primary/ (Physical/ SA ssion by
Branc
Collateral) Constructive RF h

) AE

SI

5.7 b) Audit observations of units under possession for more than 1 year

(individual case wise)

Sl. Name of the unit Audit observations Branch office Reply
No.

5.8. Status of pending OTS cases

5.8 a) List of OTS approved cases as on __________(end of audit period)

Rs in Lakhs

Sl. Name of Unit Out Date of Date of Branch
No. standing approval settlement Remarks
as on date for
Prl Int approved

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but not
settled
cases

5.8 b) Audit observations of OTS approved cases

(individual case wise)

Sl. Name of the unit Audit observations Branch office Reply
No.

5.8 c) List of OTS requests yet to be approved

( OTS request pending cases as at the end of audit period)

Rs in Lakhs

Sl. Name of the unit Asset Prl Dt of Present status
No. request
category (*) O/S

(*) as at the end of previous Financial year

5.8 d) Audit observations of OTS to be approved cases, if any

(individual case wise)

Sl. Name of the unit Audit observations Branch office Reply
No.

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6.Detection of Fraud cases
6.1.a) Fraud cases pertaining to the previous audits and their current status

Rs in Lakhs

S.No. Name of the Date of detection & Amount Current Status
Unit reporting of fraud involved

PRL INT Other
O/S O/S dues

In case, no fraud case [s] have been detected, following line may be incorporated in the audit report.

“On the basis of the records / other information available in the BO/FO, no case of
fraud was detected in the BO/FO.

6.1.b) Audit observations ,if any –(individual case wise)

Sl. Name of the unit Audit observations Branch office Reply
No.

6.2.a) Fraud cases detected during the present audit period and their status

Rs in Lakhs

S.No Name of the Unit Date of Amount involved Action
detection & taken by
PRL INT OTHER Branch
reporting O/S O/S DUES
of fraud office

6.2.b) Audit observations ,if any –(individual case wise)

Sl. Name of the unit Audit observations Branch office Reply
No.

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7. Revenue leakage

7.1 Quantifiable revenue leakages/excess claims

Position as on __________

[Rs in lakh ]

S.No. Name of the Unit No. of Actual Short / Amount Branc
1 Accou Amt amount due excess Recovere h
nts / deman / to be recover
ded demanded d office
y Reply
as per Audit

2 3 4 5 6

Total

* wherever possible, details of calculations done by Auditor may be attached with the audit report for

easy understanding of the BO/FO The amount of short recovery may be indicated in the column by
prefixing (-) before the figure.

7.2 Non-quantifiable revenue leakages/excess claims

Sl. Area/Subject Mode of leakage Audit observations Branch office Reply
No.

8. Others
8.1a Deficiencies relating to insurance policies

The status of insurance policies are indicated as under
Position as on ______(End of audit period)

Sl. Name of the unit No of units No of units
No. Primary collateral

1 Total No of units in the portfolio A

2 No of units where assets not available/ B
land only case

3 Insurance required for C (A-B)

4 Insurance coverage available(adequately) D

5 Insurance to be effected/enhanced/ E(C-D)
amended for correction if any

Note: Few sample cases may be checked for adequecy and validity

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8.1b Audit observations,if any

Audit observations Branch Office reply

In case, no observation is there, following line may be incorporated in the audit report

“ No specific discrepancy observed”.

8.2.a) Deficiencies relating to site visits

Sl. Name of the unit No of units
No. A
B
1 Total No of units in the portfolio (*)
C (A-B)
2 No of units where assets not available + units under D
possession
E(C-D)
3 Inspection required for

4 Inspections made during audit period

5 Inspections to be made

(*) including units under possession

8.2b) Observations Branch Office reply
Audit observations

In case, no observation is there, following line may be incorporated in the audit report

“ No specific discrepancy observed”.

8.3a) Acknowledgment of Debt (AOD)
The latest status of issue and receipt of AODs in the prescribed format is indicated
as under (status given in respect of all the cases where outstanding exists as on the
previous month ended of relevant audit period) :

Position as on______(End of audit period)

Sl. No of units Total
No.
Name of the unit Other than Written

written off off

1 Total No of units where payment not A
received for more than 2 years

2 No of units where Suit filed by TIIC B

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for recovery C (A-B)
D
3 AOD required for
4 AOD obtained E(C-D)
5 AOD to be obtained.

8.3b) Audit observations,if any Branch Office reply
Audit observations

8.4 a) Deficiencies relating to Encumbrance certificate as on_______ (End of audit

period)

Sl. Name of the unit No of units where E.C
No. taken for

1 Total No of units in the portfolio All Part of the
properties properties
A

2 No of units where assets not available B
C (A-B)
3 E.C required for
D
4 E.C taken upto ________( the end of audit
period )from the beginning of Financial year E(C-D)

5 E.C to be taken

Note:Brief on the cases with E.C for part of the properties and where any encumbrance
noticed shall be detailed below

8.4b) Audit observations on cases where E.C for part of the proprties / Presence of
any Encumbrance

S.no Name of the unit Branch office Audit B O reply

remark observations

In case, no observation is there, following line may be incorporated in the audit report

“ No specific discrepancy observed”.

8.5 subsidy status

8.5 a) List of cases where SBL is Outstanding

S.No Name of the unit Date of Date of Date of Date of
filing Subsidy Subsiby Subsiby
Subsidy sanction claim claim
application with received
H.O from H.O

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1
2

8.5 b) Audit observations for individual cases

(Please indicate whether subsidy sanctioned and claimed for all SBL sanctioned
cases)

S.No Name of the unit Audit observations. Branch Office reply

8.5 c) Subsidy register review

The auditors to review and report on the subsidy register maintained at Auditee office
as per the following format and delay if any in sanction of subsidy after project
implementation and delay if any in forwaing claim to H.O after sanction of subsidy

Rs in lakh

Name Term loan Whether Type of Subsidy Date of Remarks
of the project subsidy claim
unit Dt of Amt Amt impleme eligible Dt of Amt of forwarded
Sancti Sancd Disbd nted Sanction subsidy to HO
on yes/No (SCS/G of Sancd
S/CLCS subsidy
/NEEDS
etc.)

8.5 d) Audit observations Branch Office reply
Audit observations

8.6(a) SFC OP to be filed Cases

Sl. Name of the unit No of
No. units
A
1 Total No of NPA cases where assets disposed
(at the beginning of current financial year) B

2 Add No of NPA cases where assets disposed C
(during current F.Y)
D
3 Less No of cases where SFC OP filed for the balance
outstanding E (A+B-
C-D)
4 Less No of cases settled
(during current F.Y)

5 No of cases where SFC OP to be filed for the balance
outstanding

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8.6 b) Audit observations for top 3 cases by Principal outstanding wise

(as at the end of audit period)

Rs in lakhs

S.No Name of the unit PRL O/S Audit Branch Office
observations. reply

1

2

3

8.6(c) SFC OP Decreed Cases

Sl. Name of the unit No of units
No. A

1 Total No of NPA cases where SFC OP Decreed B
(at the beginning of current financial year)
C
2 Add No of NPA cases where SFC OP Decreed D
(during current F.Y)
E (A+B-
3 Less No of cases where E.P(Execution petition) filed C-D)

4 Less No of cases settled
(during current F.Y)

5 No of cases where where E.P(Execution petition) to be filed

8.6 d) Observations for top 3 cases by Principal outstanding wise

(as at the end of audit period)

Rs in lakhs

S.No Name of the unit PRL O/S Audit Branch Office
observations. reply

1

2

3

8.7 Customer Grievance redressel system

The auditrs to review and report on the system of customer grievance redressel
system maintained at Auditee office

Audit observations Branch Office reply

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8.8 Any Other issues / Observations of Audit

9. Conclusion [Signature]
Name [Head Audit Team]
Date : ________________
Place: ________________

For use of Branch while replying
10. Branch Office’s remarks:-

[Signature of the Branch manager]
Name of signatory and Branch

Date : ________________
Place: ________________

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Part B

Non operational areas Reporting Format

1. Administration Audit Branch Office
observations reply
1.1 Leave calculations

Subject

Observations relating to errors in
calculation of all types of leaves,
inconsistencies observed in
attendance register with that of
leave records, wrong / non posting
of casual leaves in CL record
sheet , deficiencies relating to
availing of all types of
leaves/absenteenism etc may be
indicated under this paragraph.

In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed".

1.2 Staff Welfare activities

Subject Audit observations Branch Office
reply
Observations relating to non
compliance of guidelines with
regard to conduct of staff welfare
activities, may be indicated under
this paragraph

In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed".

1.3 Other facilities Audit observations Branch Office
a)General Expenses reply
Subject

Observations relating to
reimbursement made to staff i)
News papers, ii) telephone bills /

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rentals and iii) official

entertainment expenditure, etc.

The deficiencies relating to

excess / short payments to staff,

incorrect exercise of DoP to be

brought out under this paragraph.

b) TA/DA / out of pocket expenses

Subject Audit observations Branch Office
reply
Observations relating to TA/DA,
other misc. reimbursements
towards conveyance charges to
staff may be indicated under this
paragraph. The deficiencies
relating to excess / short
payments to staff and incorrect
exercise of DoP to be brought out
under this paragraph.

1.4.Other administrative payments to third parties :

a) Payments

Subject Audit observations Branch Office
reply

Observations relating to payment
towards stationery/printing, car
hire,courier, caterer, photo-
copier, travel agent, office vehicle
expenditure, liveries to workmen
employees, postage, calculator,
news papers for office, florist etc.
may be indicated under this
paragraph.

The deficiencies relating to
excess/short payments, incorrect
exercise of DoP, Income Tax,
TDS and GST related matters, to
be brought out under this
paragraph.

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b)Registers

Subject Audit observations Branch Office
reply

Comments on various registers

/statements / folios relating to

General and Personnel

Administration that are

maintained by the auditee office

in soft form in the computer,

RAC/CA may specifically ensure

that access to such files is

restricted only to authorised

officials, the data base is

regularly updated and periodic

back up is taken.

In case, no observation is there, following line may be incorporated in the audit report
“ No specific discrepancy observed".

1.5.Premises

1.5 a Maintenance of premises/dead stock :

Observations relating to maintenance of premises / dead stock/ AMCs / dead stock register /
inventory of misc. items not classified as dead stock, repairs and maintenance of office, etc.,
insurance coverage and timely renewal of policies, security arrangements for office, rent / taxes for
office premises and timely renewal of lease, etc. may be indicated under this paragraph. The
deficiencies relating to excess/short payments, incorrect exercise of DoP and Income Tax related
matters to be brought out under this paragraph.

Observations relating to maintenance of various registers / files / system of keeping old
records / closed files, destruction of old records as per HO guidelines, safe custody of duplicate keys,
fire extinguishers - adequacy and usable condition, submission of periodical returns to HO etc. may
be indicated under this paragraph.]

Subject Audit observations Branch Office
reply

Observations relating to maintenance of
premises / dead stock/ AMCs / dead
stock register / inventory of misc. items
not classified as dead stock, repairs
and maintenance of office, etc., may be
indicated under this paragraph.

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Observations relating to security
arrangements for office, rent / taxes for
office premises and timely renewal of
lease, etc may be indicated under this
paragraph

The deficiencies relating to excess/short
payments, incorrect exercise of DoP,
Income Tax, TDS and GST related
matters, to be brought out under this
paragraph.

Observations relating to maintenance of
various registers / files / system of
keeping old records / closed files,
destruction of old records as per HO
guidelines, safe custody of duplicate
keys, fire extinguishers - adequacy and
usable condition, submission of
periodical returns to HO etc. may be
indicated under this paragraph.

1.5 b INSURANCE COVERAGE AND TIMELY RENEWAL OF POLICIES :

Observations relating to insurance coverage and timely renewal of policies as per the

policy guidelines, may be indicated under this paragraph.

S.No Description Insurance Valid Audit Branch
observations Office
reply
amt upto

1 Cash in Transit

2 Cash in Chest

3 Fidelity Insurance

4 Furniture & Fittings and
office equipments etc.

5 Any other assets

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2. Accounts

2.1a) General accounts-Abstract
Number of accounts as on ___________(End of audit period)

S.No Type of loan No of Accounts

1 Term loan

2 Transport loan(TPT)

3 Bill Finance Scheme(BFS)

4 Grow an Enterprenuer

Scheme(GES)

5 Mini loan

Total

2.1b) Audit Observations on Accounts

S.No Subject Audit Branch
observations Office reply

1 Observations on demand checking

(Minimum the following demands to be checked

and reported and the list of cases checked

shall be annexed- appendix III

a) For cases foreclosed during audit

period

b) Foreclosure withdrawn cases

c) Reschedule cases

d) First disbursement cases

e) Atleast 1/3 of the other demand raised

cases )(so as to cover all the cases in a

cyclical manner)

2 Observations on demand updation in

system and date of last updation

3 Observations relating to usage of `

current account codes, scrutiny of

final statements, monthly

reconciliation of General Account /

Sundry / Suspense, daily funds

management / bank reconciliation,

maintenance of Cheque Inward

Register, Petty Cash/Imprest Cash

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Register, issue and safe custody of
cheques/cheque books, third party
payment, etc. may be indicated
under this paragraph.

4 Observations on Ledger postings

including manual ledgers

5 Observations relating to follow up of

accounting procedures in accounting

auction sale proceeds / OTS

settlement

6 Observations on G.L Trial Balance

for the previous month

7 Observations on Cash checking (on

any one day)

8 Observations on remittance of

statuatory dues like service tax, TDS

etc by Branches in time.

Note: .In case, no observation is there, following line may be incorporated in the audit report

“ No specific discrepancy observed".

2.2. Reconciliation of account entries with GL :

Subject Audit observations Branch Office
reply
Reconciliation of account entries
with GL

2.3. Expenditure control
Please furnish data showing comparative position of expenditure actually incurred
vis-a-vis Budget approved thereof, by the BO in respect of controllable administrative
expenditure heads and comment on the status thereof. In case, there has been
increase in expenditure, suitable justifications there of as spelt by BO officials be
incorporated against such heads of expenditure. If BO has taken steps to control the

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expenditure/ got permission from H.O for the expences may also be suitably
indicated in the report.

Headwise Revenue Expenditure Details

Expenditure Budgeted Expen Difference Remarks/Justification
Amt. Diture (Budget- as spelt by auditee
as on Actual) office if exceeds the

budget

Auditor may note to relate pro-rata budget of the BO with the expenditure incurred under
each Head. If BO has taken steps to get permission from H.O for the expenses may also be
suitably indicated in the report

2.4. Details of security deposit(S.D) / Follow up deposits(F.D)
(matured and pending for more than 2 years.)

S.N Name of In S.D / S.D / S.D / Reaso Audit Branc

o Deposit case F.D F.D F.D n for observatio h

or of recei amou maturit pendin n Office

S.D, pt dt nt y dt g reply

relate

d

Unit’s

name

2.5. Status of computerisation

Observations relating to computerisation whether upto date data has been entered
into the system,any other issues relating to computerisation that are highlighted by
the Branch office

Audit observations Branch Office remarks

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3. Any Other issues / Observations of Audit

4. Conclusion

[Signature]
Name [Head Audit Team]

Date : ________________
Place: ________________

For use of Branch while replying
5. Branch Office’s remarks:-

[Signature of the Branch manager]
Name of signatory and Branch

Date : ________________
Place: ________________

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Appendix I

To Audit report for the period(from ________ to ________)

Assets Verification for which disbursement made from _______ to _____-

Branch :

Physical verification by:_______________________(name and Designation of auditor )

S. Name Typ Date/ Disburseme Date Amt Cumula Details of Date of Availability Remark
L. of the tive assets inspecti of assets s
N unit e of Amo nt note of disb disbd on
o Yes/no
loa unt Disbm d

n sanc t

tione No Date

d

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Appendix II

UNIT INSPECTION REPORT
1. Name of the Branch
2. Name of the Audit Official Thiru

inspecting the unit
3. Date of Inspection
4. Name of the Unit
5. Location: Factory:

Office:

6. Type of the Unit
(or nature of Business)

7. Name of the Promoter
(Proprietor/Partner/Director)

8. Category/Asset Classification of
the unit

9. Information on working results ( Rs.in lakhs)
As ascertained from the unit

A i) Monthly Turnover

ii) Monthly Expenses

iii) Surplus / Net Profit

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B Previous year working results 31/03/ (Rs. in lakhs)
(if available)
Working Results
Turnover
Net Profit
Cash Profit

Liabilities:

Capital

Reserves & Surplus

Secured Loans – TIIC
- Bank
- Others

10. Details of Insurance cover and Insurance valid up to / / for

Its adequacy Rs. lakhs.

11. Details of Loan Account Position: As on / / (Date) (Rs. in Lakhs)

A/C No. Date of Amount Amt. Pl. OVERDUES

Sanction Sanctioned Disbursed O/s Prl. Int. Others

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12. Details of Working Capital Facilities enjoyed

A. Name and Address of the
Bank

B. Facility enjoyed
C. Whether they are regular in

Meeting the commitment of the
Banker
D. Asset Category in Bank

13. Is the unit working on Single/Two/Three shifts Rs. lakhs
14. Whether all the assets Funded are available
15. Sales during last 3 months Admn. Nos
16. Power consumed in Last 3 months
17. Number of workers on Rolls

Skilled labours Nos

Unskilled Nos

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18. The Inspection Official shall furnish the details such as:-

. Installed Capacity Actuals

(Rs. in lakhs) (Rs. in lakhs)

a) Present utilization capacity

b) If it is below the capacity assumed at
the time of sanction reason be
indicated for the same

c) Whether project is implemented as
envisaged in the scheme

d) Is the unit attempting any expansion

19. In case of overdues, reason or problem

in servicing the loan :

v) Diversion of funds }

vi) Lack of Orders }

vii) Dispute between promoters }

viii) Any other reasons }

20. Any other remarks by the Audit Officials/

Overall observation in brief :

INSPECTING OFFICIAL
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Appendix III

List of Demand Checked cases

S.No Name of the Unit Remarks

A Foreclosure cases

B Foreclosure cases withdrawal cases

C Reschedule cases

D First Disbursement cases

E General cases (Other than above categories)

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CONCURRENT AUDIT REPORT FORMAT -- FOR HO DEPARTMENTS

Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
OPERATING OFFICE /
No. VH / H / M / L (*)
COMMENTS /
COMPLIANCE

1. HR Department

1.1 Maintenance of files, registers and other

records

1.2 Whether Employment Exchange and

other Returns are sent periodically

1.3 System of keeping old records and their

easy retrieval

1.4 Destruction of old records as per extant

guidelines

1.5 (a) Whether periodical increments are

sanctioned to employees in

Jan/Apr/July/Dec is in order.

(b) Whether fitment for promoted
employees / pay fixation is in order.

1.6 Whether leave entries are updated in the

Service Register and checked.

1.7 Whether encashment of Privilege Leave

is calculated correctly and approved as

per DoP.

1.8 Whether purchase of movable /

immovable assets by the employees are

properly recorded in the Service

Register.

1.9 Whether the confidential reports of the

employees are obtained from the

Reporting / Countersigning officials.

1.10 Whether the bills on various expenditure
incurred are approved as per DoP.

1.11 Whether LFC bills are processed as per
norms and guidelines.

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FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE

Sl. OPERATING OFFICE /

No. VH / H / M / L (*) COMMENTS /

COMPLIANCE

1.12 Whether records relating to training are
properly maintained.

1.13 Whether GST has been correctly paid on
various expenditure at applicable rates.

1.14 Whether application from employees for
loans / advances / allowances are
processed as per extant guidelines.

1.15 Whether TA Bills / Medical bills of
employees are passed as per norms /
guidelines.

2. Estate Division

2.1 Whether various expenditure bills are

passed as per DoP.

2.2 Whether attendance register for the

contracted Housekeeping staff is

checked before making payment.

2.3 Whether expenses on common

maintenance is shared with the co-

owners on pro-rata basis.

2.4 Whether Property Tax / Water Tax are

paid on due dates.

2.5 Whether payment of local conveyance to

the employees is as per extant

guidelines.

2.6 Whether Insurance Policies on various

assets are adequate and in force.

2.7 Whether AMC for various assets have

been entered as per norms.

2.8 Whether condemnation / purchase of

office vehicles are done as per extant

guidelines.

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FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE

Sl. OPERATING OFFICE /

No. VH / H / M / L (*) COMMENTS /

COMPLIANCE

2.9 Whether uniform to eligible employees

provided as per guidelines.

2.10 Whether maintenance of vehicle log
book and expenditure on fuel is
checked.

3. Funds & Resources Department

3.1 Whether details for claiming Refinance

from SIDBI has been furnished as per

their requirement?

3.2 Whether Fixed Deposits are mobilized

as per the extant guidelines?

3.3 Whether transfer of funds from & to

branches are closely monitored?

3.4 Whether surplus funds at H.O., if any,

are properly invested to avoid loss of

income ?

3.5 Whether interest rates are fixed based

on the recommendations of Asset

Liability Committee and approval of

Board.

3.6 Whether the observations of AG Audit /

Statutory Audit / SIDBI Inspection are

complied without delay.

3.7 Whether repayment of bank loans / FDs

/ Bonds are done on due dates.

3.8 Whether provisioning of NPAs is made

as per RBI guidelines?

3.9 Whether Bank Account Reconciliation

and HO/BO reconciliation is done

regularly?

3.10 Whether cheque books are kept in safe
custody and operated only by the

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Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
VH / H / M / L (*) OPERATING OFFICE /
No.
COMMENTS /
COMPLIANCE

authorized signatories?

3.11 Whether EPF /EGF Funds are invested
as per extant guidelines?

3.12 Whether Salary, bonus and other staff
related payments are made correctly?

3.13 Whether payments for expenditure bills
are made as per the approval given by
the delegated authorities ?

3.14 Whether the expenditure budget is
monitored vis-avis actual every month ?

3.15 Whether TDS and other returns are filed
before the due dates?

4. GST Matters

4.1 Whether GST data of the previous

month from all BO/FO received before
the 5th of every succeeding month.

4.2 Whether GRTR-3B Return filed before
20th every month.

4.3 Whether payment of GST amount is
made on or before 20th of every

succeeding month.

4.4 Whether the correct GSTIN numbers are

mentioned by BO/FO in their statement.

4.5 Whether GSTR-1 return filed before 10th

of every month.

4.6 Whether GST payment details are given

to F&R Department for the purpose of

HO/BO reconciliation.

4.7 Whether the GST returns are reconciled

with the Annual Accounts and annual

return filed.

4.8 Whether GST audit is completed and

observations, if any, are complied with.

119 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Sl. FUNCTIONAL AREA Detailed scope AUDIT Risk RESPONSE
OBSERVATIONS Level OF THE
No.
VH / H / OPERATING
M / L (*) OFFICE /

COMMENTS /
COMPLIANCE

4(a) GST – Returns checking

1 Output GST – Verification and 1.1 Whether B2B and B2C

correction of out put supplies declared outward supplies matched with

in B2B (registered) and GL code, GL head taxable value

B2C(unregistered) in GST return with the books

viz.GSTR-1 & GSTR-3B in comparison

with books

1.2 Whether GSTIN as shown in
B2B verified with GST website.

1.3 Whether CGST and SGST is
calculated on appropriate
taxable value and applicable
rate of GST of outward supplies

1.4 Whether there is any
difference between the exempt
outward supply such as interest
income declared in GST returns
vs.book

2 Input GST – Checking the eligibility of 2.1 Whether at branch level ITC

ITC availed on input supplies with availed on inward supplies with

original invoices at HO level the copies of the invoices as

given by branches are verified

2.2 Whether tax invoices
received have both TIIC’s name
& GSTIN and supplier’s GSTIN

3 GSTR 3B /2A Reconciliation

1. Whether reconciliation is
being prepared between ITC
availed on inward supplies in
GSTR 3B and the auto
populating statement of
GSTR-2A?

2. Whether there is any
difference amount in between
GSTR-2A and GSTR-3B?

4 Compliance return filing before due
dates: Due date of filing:

Whether all the returns viz.GSTR-
1,GSTR-3B & GSTR -7 are filed within
due date? If not the quantum of interest
and late fee levied on such returns.

120 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
VH / H / M / L (*) OPERATING OFFICE
No.
/ COMMENTS /
COMPLIANCE

5. Loan monitoring & Recovery

5.1 Monitoring the pendency of petitions forwarded
through Honble CM’s cell, Amma Call Centre &
Govt.of India Public Grievance portal and others

5.2 Scrutinizing the OTS proposal received from the
branches

5.3 Monitoring of slippage of units

5.4 Analysis of loan portfolio

5.5 Checking the correctness of change in
management /Consti-tution, reschedule, TLSP
clearances, Upset price fixation, substitution of
collateral security

Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
VH / H / M / L (*) OPERATING OFFICE
No.
/ COMMENTS /
COMPLIANCE

6. Project department

6.1 Scrutinizing the relaxation notes regarding
special / general conditions

6.2 Scrutinising the relaxation of security, change of
supplier, direct payments to supplier, CIBIL
score relaxation, age relaxation, 10% overdue
relaxation etc.

6.3 Whether undrawn balances were reviewed at
each month end

121 | P a g e
RFP for (Concurrent) audit of Operations of TIIC Branch / Head Office

Sl. FUNCTIONAL AREA AUDIT OBSERVATIONS Risk Level RESPONSE OF THE
VH / H / M / L (*) OPERATING OFFICE
No.
/ COMMENTS /
COMPLIANCE

7. Subsidy Department

7.1 Whether subsidy claims made with the
Government is as per Government policy and
claims are made in time

7.2 Subsidy reimbursement received from
Government is properly appropriated and
accounted to the respective units

7.3 Whether subsidies disbursed but recovered
from the units on account of ineligibility has
been surrendered to the Government

122 | P a g e

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