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Security Printing And Minting Corporation Of India Limited, Delhi
February, 18th 2019
                                Security Printing & Minting Corporation of India Limited
                                            (A Mini Ratna Category ­ I CPSE)
                                         (Wholly owned by Government of India)
                              16th Floor, Jawahar Vyapar Bhawan, New Delhi -110001


                          Standard Bidding Document (SBD)

YEAR 2019-20.

Tender No. SPMCIL/FIN/254/EOI/IA/2019                                          Dated: 08.02.2019

This Tender Document Contains 30 Pages

Details of Contact person in SPMCIL, New Delhi regarding this tender:

Deputy Manager (Purchase), SPMCIL,
1st Floor, Jawahar Vyapar Bhawan,
New Delhi - 110001

                                                       Page 1 of 30

SECTION   PARTICULARS                                                  Page
NO.                                                                    No.
1.        Notice Inviting Tender (NIT)                                 3-4
2.        Format of Bid                                                5-9
3.        Special Instructions and Document Lists                      10-11
4.        Objectives of Internal Audit                                 12
5.        Special conditions                                           13
6.        List of requirement (Scope & Extent of coverage of Audit )   14-16
7.        Selection Criteria                                           17-19
8.        Audit fee & Reporting Requirements                           20-22
9.        Qualification / eligibility criteria                         23
10.       Tender form                                                  24
11        Price Bid format                                             25
12        Man-days requirement                                         26
13.       EMD                                                          27
14        Timeline                                                     27
15        Security deposit                                             29-30

                             Page 2 of 30

                         Security Printing & Minting Corporation of India Limited
                                     (A Mini Ratna Category ­ I CPSE)
                                  (Wholly owned by Government of India)
                         16th Floor, Jawahar Vyapar Bhawan, New Delhi -110001

No. SPMCIL/FIN/254/EOI/IA/2017(CHO/FIN/2016/5247)                               Date 08.01.2019

SPMCIL invites sealed tenders from eligible and qualified tenderers for the following service: -

 Description                                                               Earnest Money (In

  TENDER FOR ENGAGING PARTNERSHIP/LIMITED LIABILITY                        Rs.4,500/- (Rupees
  PARTNERSHIP FIRMS OF CHARTERED/COST ACCOUNTANTS                          Four thousand five
  FOR CONDUCTING INTERNAL AUDIT IN NINE UNITS AND                          hundred only)
                                                                           For each office/unit.

 Type of Tender                                   Two Bid.
                                                  Open Tender (National Competitive Bidding)

 Dates of submission of tender documents          From 08.02.2019 to 11.03.2019 (from 10:00
                                                  AM to 05:00 PM) on all working days
                                                  (Saturday and Sunday is weekly off in

 Place of receipt of tenders                      Security Printing and Minting Corporation of
                                                  India Ltd., 16th Floor, Jawahar Vyapar Bhawan
                                                  STC, Janpath, New Delhi.

 Time and date of opening of tenders               05.10 P.M on11.03.2019

 Place of opening of tenders                      Security Printing and Minting Corporation of
                                                  India Ltd., 16th Floor, Jawahar Vyapar Bhawan
                                                  STC, Janpath, New Delhi.

                                          Page 3 of 30
1. Interested tenderers may obtain further information about this requirement from the above
2. Tenderer may download the tender documents from the web site www.spmcil.com and submit
its tender by utilizing the downloaded document.
3. Tenderers shall ensure that their tenders, duly signed and stamped on each page and complete
in all respects as per instructions contained in the Tender Documents, are dropped in the tender
box located at the address given below on or before the closing date and time, failing which the
tenders will be treated as late and rejected.
4. In the event of any of the above mentioned dates being declared as a holiday/ closed day for
the SPMCIL the tenders will be received/ opened on the next working day at the appointed time.
5. Bid received by, e-mail will be ignored.
6. Bid must be enclosed in a sealed cover both bearing the Tender Number and due date.

Address for tender document.

 Deputy Manager (Purchase), SPMCIL,
1st Floor, Jawahar Vyapar Bhawan,
New Delhi - 110001

                                                Page 4 of 30
                          Section ­ II: FORMAT FOR BID

1. Name of the Firm:

2. Registration No. of the Firm:
(Institute of Chartered/Cost Accountants of India)

3. i. Date of Registration of the Firm :

  ii. Type of firm                          :              Partnership firm/ LLP firm/Proprietor

4. Details of Head Office & Branch Office(s): Head Office:

Address                                         Date of       Contact            E-mail
                                                Establishment No(s)

Branch Office 1
Address                                         Date of       Contact            E-mail
                                                Establishment No(s)

Branch Office 2
Address                                         Date of       Contact            E-mail
                                                Establishment No(s)

(Insert further branch office(s), if any)

                                                 Page 5 of 30
 5. Details of Partners in the Firm/Limited Liability Partnership:
 S.No. Name of the Partner          Membership Membership             CISA/DISA/IS      Date of
                                    No.             Status            A or              Joining
                                                    ACA/ACMA/         equivalent        the firm
                                                    FCA/FCMA          qualification     As






(Please attach certificate issued by institute of chartered accountants of India (ICAI)/ Institute of
cost accountants of India (ICAI) in support of information furnished at Sl. No. 1, 2, 3, 4 and 5

6. Is the partner of Firm/LLP:-

 No.                                     Particulars.                                     Yes/ No
  a.   Dismissed Government Servant.
 b.    Removed from approved list of vendors.
  c.   Demoted to a lower class of vendors.
 d.    Having business banned/suspended by any government in the past.

  e. Convicted by a court of law.
     Retired engineer/official from engineering Department of Govt. of India
  f. within last two years.
     Direction of partner of any other company/ firm enlisted with CPWD or any
  g. other department.
  h. Member of Parliament or any State Legislative Assembly.

7. Is any Partner/Person working with the applicant is a near relative of the officer/ official of
SPMCIL: Yes/ No.

                                            Page 6 of 30
8. Details of Qualified Assistants (i.e Chartered/Cost Accountants employed by the firm)

Sl.no. Name of the Assistant         Membership
                                     No.                 Whether
                                                         ACA/ACMA/FCA/FCMA Date of joining
                                                         (Please attached       the firm as
                                                         membership certificate qualified
                                                         issued by respective   assistant
                                                         institutes for each
                                                         qualified assistant)



9. Details of Experience in PSU Sector:

Sl.no. Name of the Company                               Year        of Type of audit ­ whether
                                                         audit          statutory/internal audit
                                                                        (please attach copy of
                                                                        appointment letter for
                                                                        each year & for every




10. Details of Experience in conducting audit in organization working on SAP ERP Platform :
S.No. Name of the Company Year                    Type of Audit ­
                                of                Whether
                                Audit             Statutory/Internal
                                                  Audit (Please attach copy of appointment letter for
                                                  each year & for every company)




                                          Page 7 of 30
   11. Income Tax PAN No. of the Firm
   12. GST Tax Registration No.                                   :

   13. Bank details for EFT                                       :

   1.      Bank Name

   2.      Branch Name and Address

   3       Bank Account Number            & Type of Account i.e

   4.      IFSC Code

Note: A Cancelled Cheque is to be enclosed in support of details as filled in Sr. No. 13 above.

14. Turnover of the Firm:-


                              2017-2018              2016-2017               2015-2016
   ( in Rs. Lakhs )

15. It is confirmed that all the requirements as per section 3 to the tender documents have been
   complied with.

16. We confirm that we have not taken any deviation from the terms & conditions, of the tender
    documents. A copy of complete tender document duly signed and stamped on all pages as a
    token of acceptance of all terms & conditions is attached.

   I/We certify that the information given above is true to the best of our knowledge. I/We also
   understand that if any of the information is found wrong, my/our tender will not be considered.

   Date .......................
   Signature of Partner with
   Name & Seal of the Audit Firm

   Note: 1. List of documents to be submitted along with the applications: - Please refer to the
   instructions mentioned at section no. III of the tender.

                                              Page 8 of 30

   (A) Instruction to Audit Firms:

1. Format of Bid must be completely filled in. Incomplete Bids will be rejected out- rightly.
2. Please ensure that date of opening of Head Office, Branch Office, entrance dates of all Partners
    into the firm, date of joining firm as qualified assistants should be invariably indicated in the Bid.
3. All bids will be evaluated on the basis of the documents furnished along with Bid only. Any
    additional document received, after last date & time of receiving the bids as stipulated in the
    Notice Inviting tender, will not be entertained. However, in case the Technical evaluation
    committee (TEC) finds it necessary to call for some document/clarification, then that document
    as called for will be taken into account during evaluation.
4. Since, all the applications will be evaluated strictly on the basis of Selection and eligibility
    Criteria as per section VII & IX respectively, please avoid attaching unsolicited
    information/documents so as to enable us to process Bid expeditiously.
5. All submitted documents should be signed by a Partner with his name and under the seal of the
6. The bid would consist of following:-

      1.    Envelope No. 1 to contain the following:
              i.  EMD of Rs 4500/-. For financial bid of each office/unit.
     2.     Envelope No. 2 to contain the Technical Bid as per note 1 at section VII.

     3.     Envelope No. 3 to contain the Financial Bid as per format prescribed on section XI.

   Envelope No. 1 & 2 form First part, will be known as 'Technical Bid', and the Envelop No.
   3 will form second part i.e. 'Financial bid'. Tenderer shall seal separately 'Technical Bid'
   and 'Financial bid' and covers will be suitably super scribed. All these three sealed covers
   shall be put in a bigger cover super scribing the Tender No. & date and marked in bold
   letters "Bid for engagement of Chartered Accountant Firm/Cost Accountant Firm for
   conducting internal audit of FY 2019-20" thereon and sealed. The name and address of the
   firm must also be indicated on the body of the envelope.

   Bids not accompanying EMD would be summarily rejected and their Technical and
   Financial bids will not be opened. No communication in this regard will be entertained in

                                                Page 9 of 30
7. Bid may be submitted in by hand or by post/courier to the office of The Deputy Manager
   (Purchase), Security Printing and Minting Corporation of India Limited, Corporate Office,
   1st Floor, Jawahar Vyapar Bhawan, Janpath, and New Delhi-110001. SPMCIL does not take any
   responsibility for loss of application in transit. Applications sent through E-mail will not be

8. Any Bid received after the stipulated date and time, due to any reason whatsoever, will be
   rejected out-rightly.

   (B) List of documents to be submitted along with the application:

   Interested audit firms are advised to go through contents of the tender documents carefully and
   submit all self-attested copies of the following documents in proper sequence along with the bid
   as described hereinafter:

1. Registration certificate of the firm issued by the Institute of Chartered Accountants of India and /
   or Institute of Cost Accountants of India, Information related to year of establishment of Head
   Office & Branch Office(s), addresses, details of partners and their membership nos. etc. as
   indicated in the Certificate will be treated as conclusive and final information for evaluation of

2. Membership certificates of the qualified assistants issued by the Institute of Chartered
   Accountants of India and / or Institute of Cost Accountants of India.

3. Copies of appointment letters for Statutory/Internal audit in organizations working on SAP
   ERP Platform.

4. Copy of PAN Card.

5. Copy of GST Registration.

6. A cancelled cheque of the Bank to which Fee payments will be made.

7. A copy of complete tender document duly signed and sealed as a token of acceptance of all
   terms and conditions.

                                              Page 10 of 30
                   Section IV: OBJECTIVES OF INTERNAL AUDIT

S. No.   Objectives

1.       To review and evaluate internal control systems and procedures to determine reliability
         and integrity of information and documents.

2.       To ensure that the SPMCIL maintains proper accounting records as required by law and
         follows prescribed accounting standards and practices and policies consistently.

3.       To assess adequacy of systems and procedures for procurement, obtaining sanction for
         disbursement and utilization of resources.

4.       To ensure compliance of statutory laws, rules and regulations.

5.       To review corporate Governance practices.

6.       Evaluation of performance management system with reference to yearly plan and

7.       To assess the adequacy of the internal financial control systems and procedures for
         safeguarding the interest of the SPMCIL, detecting fraud or irregularities and
         safeguarding the assets of the SPMCIL.

8.       To review Internal Financial control on financial reporting.

9.       Fixed Asset Verification

10.      Inventory Verification.

                                        Page 11 of 30
                 Section V: SPECIAL CONDITIONS OF CONTRACT (GCC)

   i.   Appointment of Audit firm's will be done Unit wise.
  ii.   The SPMCIL reserves its right to accept or reject any Bid without assigning any reasons.
        The decision of the SPMCIL for selection of the Firms will be final and binding upon the
        parties participating in the tender.
 iii.   Internal Audit shall be conducted in four phases i.e. 1st Phase covering period from
        01.04.2019 to 30.06.2019, 2nd phase covering period from 01.07.2019 to 30.09.2019, 3rd
        phase covering period 01.10.2019 to 31.12.2019 and 4th phase covering period from
        01.01.2020 to 31.03.2020.
 iv.    The Internal Auditor will ensure that the information obtained in respect of the operations of
        the Unit is maintained in strict confidence and secrecy. A certificate towards maintaining
        confidentiality is to be provided by the Internal Auditor at the time of acceptance of Audit
  v.    The appointment of the Audit Firm will be for one year i.e. for 2019-20 and may be extended
        on yearly basis in 2nd i.e. for F.Y 2020-21 subject to satisfactory performance of the firms on
        same rates and terms & conditions.
 vi.    If progress/performance of the audit firm is not found satisfactory by SPMCIL or there
        are in-ordinate delays in submission of reports, the management reserves the right to
        terminate the appointment of the Firm.
vii.    The Audit firm will be debarred from getting, in future, Internal Audit assignments in
        SPMCIL in the following cases:
        a. If the Firm obtains the appointment on the basis of false information/false statement at
            the time of submission of application/documents for the tender.
        b. The Audit Firm is found to have sub-contracted the work.
        c. If the Firm does not take up audit in terms of the appointment letter.
        d. If the Firm does not submit Audit Report, complete in all respect, in terms of the
            appointment and within the specified date.
        e. If the firm is found to be divulging the information of the operations of the company.
viii.   Please refer to our website for further details
        "http://www.spmcil.com/spmcil/uploaddocument/git.pdf (GIT contains 32 pages and
        will form part of this tender document"
        And        Please        refer       to     our      website        for     further      details
        "http://www.spmcil.com/spmcil/uploaddocument/gcc.pdf (GCC contains 28 pages and
        will form part of this tender document)"
 ix.    The tenders shall remain valid for acceptance for a period of 120 days.
  x.    The selected firms shall give security deposit.

                                             Page 12 of 30

Sl. No. Scope                                                                    Periodicity/Extent
                                                                                 of Coverage
  1.     Sales & Revenue :
         Verification of all heads of revenue along with all the supporting      Quarterly ­ 100%
  2.     Procurement (pre award and execution) :
         (a) Contracts of value up to Rs.5 lakhs                                 Quarterly ­ 25%
         (b) Contracts of value between Rs.5 lakhs to Rs.10 lakhs                Half yearly ­ 50%
         (c) Contracts of value above Rs. 10 lakhs                               Quarterly ­ 100%
         Ensure that the guidelines as per procurement manual are duly
         Complied with.
         It will also include checking of performance bond/guarantee for
         validity and safe custody, insurance and risk management
  3.     Contracts on nomination basis :
         Verification of contract/PO awarded on nomination basis and             Quarterly ­ 100%
         single tender basis valuing Rs.1.5 lakh and above.
  4.     Contractors' bills :
         Checking of running account bills with respect to quantity and
         quality of work, certification of work, adjustment of advances,         Quarterly ­ 50%
         application of penalty clause etc. as per the terms of contract.

  5.     Payroll : Verify whether
         (a) Salaries, wages and other deductions are authorized and        Quarterly ­ 100%
         recorded on a timely basis and payroll deductions are
         determined in accordance with legal requirements and are paid to
         Government and other specified parties as per specified timelines.
         (b) All authorized employee benefit plans and related costs are    Quarterly ­ 50%
         appropriately controlled and administered.
         (c) PAO claims are properly administered.                          Half yearly­ 100%

  6.     Human Resource & Establishment:
         (a) Leave records                                                       Half yearly ­ 50%
         (b) Payment of all types of advances to the employees                   Quarterly ­ 100%
         (c) Review of sub ledgers and recovery of advances                      Quarterly ­ 100%
         (d) LTC records                                                         Half yearly ­ 50%
         (e) Pay fixation                                                        Half yearly ­ 100%
         (f) Training & development                                              Half yearly ­ 100%
            Bank reconciliations:
   7        Verification of BRS of all the bank accounts including outstanding    Quarterly ­ 100%
            entries in the previous BRS.

                                               Page 13 of 30
8.    Periodical age wise/unit wise analysis of all receivables with        Quarterly -50%
      respect to pricing, tenure of credit and collection.

      Accounts :
9     Vouching of all vouchers (cash, bank, JVs)                            Quarterly -50%

      Guest House:
10.   (a) To check the level of utilization i.e. occupation of rooms by     Half yearly ­ 50%
      (b) Receipt of revenue
      (c ) Purchase of consumables
      (d) Purchase and use of assets
      (e) Repairs and maintenance of assts.
11.   Inventories:
                                                                            (a), (b), (c) ­ Yearly
      (a) Periodical Physical verification of inventories.                  -50%
      (b) Reporting the variances as per physical verification and as
      per books of account
      (c ) Valuation in accordance with the applicable accounting
      policies prescribed by ICAI
      (d) Identification of slow moving and excess inventories and its      (d) ­ quarterly ­ 50%
      periodical reporting to management with suggesting measures.

12.   Fixed Assets:

      (a) Conduct the Physical verification of fixed assets in Yearly ­ 100%
      accordance with the applicable Accounting policies.

      (b) Reporting the variances as per physical verification and as Yearly ­ 100%
      per Books of Account.
                                                                        Yearly ­ 100%
      (c) Check whether proper records are maintained including Fixed
      Assets Register and Depreciation is properly calculated and
      accounted for in accordance with the applicable Accounting
13                                                                      Yearly ­ 100%
      To ensure that all the known liabilities have been provided after
      duly authorization including retirement benefits and claims in
      respect of employees. To ensure actuarial valuation as per
      applicable accounting standards.

14.   Payables:

      Periodical age-wise/ party wise analysis of all payables in respect
      to creditors- Domestics, Imports Capital Projects-EMD, Security
      Deposit etc.

                                         Page 14 of 30
15.   Township
      (a) To check whether the allotment, occupation and vacation of
      quarters is in accordance with the laid down practices.
      (b) Receipt of revenue.                                              Half yearly ­ 50%
       Stores management.
      (d) Repair and maintenance of building and roads.
16.   Investments:
      (a) Periodic physical verification of investment and deposits
      (b) To ensure that the booking of income on investments and          Yearly ­ 100%
                                                                           (only at corporate
      deposits as per the terms of investment made                         office)
       Ensure that the DPE guidelines on the subject are duly complied
                                                                           Quarterly ­ 100%
17.   Compliance to DPE guidelines :                                       (only at corporate
      To go through the DPE guidelines and compliance thereof in           office)
      company and point out any variation /deviation.
18.   CSR activities :
      (a) Contracts of the value below Rs. 10 Lacs                            Half yearly ­ 50%
      (b) Contracts of the value equal to or more than Rs. 10 Lacs            Half yearly ­ 100%
      (a) Perform a diagnostic review of existing internal financial control
      system from the management's perspective and to identify Yearly ­ 100%
19.   deficiencies, if any. Provide recommendations to mitigate such
      (b) Identifying significant accounts and mapping with business
      processes and sub-processes for identification of financial reporting Yearly ­ 100%
      risks (materiality, quantitative & qualitative judgment),
      Recommend on documentation guidelines and Advice on updating
      the IFC Framework.
       Provide recommendations on ways that the SPMCIL may address
      control weaknesses.
      (d) Review of risk and control matrices including documentation of Yearly ­ 100%
      controls i.e., entity level controls, pervasive IT controls and process
      level controls.
       Any other activities/studies/reports if necessary, in connection
      with development of Internal Financial Control Framework not
      covered above.                                                          Yearly ­ 100%

                                          Page 15 of 30
         Statutory Compliances :
         To ensure compliance of all the applicable statutes and laws
         governing the organization that all the taxes and statutory dues
         are deposited in time and the required reports and returns have    Quarterly ­ 100%
         been filed periodically on time.

         Adjustment of advance given in respect to work orders and their
  21.    adjustment with work done and adjustment of advances (CPWD). Quarterly-100%

  22.    Report on the inter unit reconciliation to be done monthly.
  23.    Other areas which SPMCIL Management may consider
         necessary in the course of working of the units.

Note: The firm undertaking internal audit has to exercise their discretion and apply their minds &
rely on their judgment so as to ensure that all essential and significant areas of checking have been
covered by them and no important area of checking has been left out.


                                             Page 16 of 30
Sl.   Particulars                    Points to be allocated   Maximum        Supporting Documents
No                                                            Points

1.    Year of establishment of the 10 Years                   10 (ten)       Registration certificate of the
      Audit firm/Limited Liability 1 Point for each year.                    firm issued by the Institute of
      Partnership Firm.                                                      Chartered accountants of
                                   Cutoff date shall be                      India and / or Institute of Cost
                                   31.12.2018.                               Accountants        of      India.
                                                                             Information related to year of
                                                                             establishment        of     Head
                                                                             Office(s) & Branch office(s),
                                                                             addresses, details of partners
                                                                             and their membership nos.
                                                                             etc. as Indicated in the

2.    No.     of     Partners in     a) Four (4) points for   20 (twenty)    Registration certificate of the
      the Firms/Limited Liability    each Partner who is                     firm issued by the Institute of
      Partnership Firm who with      ACA/ACMA.                               Chartered accountants of
      the Firm for a minimum                                                 India and / or Institute of Cost
      period of year as on date of   b) Five (5) points for                  Accountants        of      India.
      application.                   each Partner who is                     Information related to year of
                                     FCA/FCMA.                               establishment        of     Head
                                                                             Office(s) & Branch office(s),
                                                                             addresses, details of partners
                                                                             and their membership nos.
                                                                             etc. as Indicated in the
3.    No. of Qualified Assistants a)        FCA/FCMA          15 (fifteen)   Copy of details filed with the
      (Chartered/Cost accountants)          03per person                     Institute of Chartered/Cost
      employed with the firm.                                                Accountants of India.
                                   b)       ACA/ ACMA 2
                                            per person

4.    Experience of the Firm in 3 (Three) per year of 15 (Fifteen)           Copies of appointment letters
      Organization working on SAP Audit (fraction of the                     /orders for statutory audit/
      ERP Platform as Statutory     year to be ignored).                     internal audit of any entity.
      /Internal Auditor (Experience                                          Certificate shall be submitted
      in 2018-19 not to be                                                   from the entity that they are
      considered).                                                           SAP compliant.

                                            Page 17 of 30
   5.    Experience of the firm in        Mini-ratna and above     20         Copies     of    appointment
         internal       audit      of     5 (Five) per audit       (Twenty)   letters/orders for internal
         Central/State PSU (Audits of     and other PSUs 2 per                audit in any Central /State
         2018-19     not      to   be     audit.                              Govt. PSU.
         considered)                                                          (Excluding     banks     and
                                                                              insurance PSUs.)

   6.    Turnover of the internal audit   a) More than Rs. 200 20 (twenty) Copies of relevant pages of
         clients during F.Y. 15-16, 16-   Cr.& upto Rs.- 500 Cr.              audited financials for all the
         17 & 17-18.                      per client per year                 clients for F.Y. 15-16, 16-17
                                          (2 points)                          and 17-18 to be enclosed.

                                          b) More than Rs. 500
                                          Cr.& upto Rs. 1000 Cr.
                                          per client per year (4

                                          C) More than 1000Cr.
                                          per client per year
                                          (6 points)


1. All above mentioned supporting documents along with bid (format of bid) will constitute
   "Technical Bid".

2. The Bidder will mention self-evaluated score against each parameter and will provide related
   documentary evidence against each parameter given above. The self-evaluated scores of the Bidder
   will be verified by the Evaluating Committee of SPMCIL based on the documentary evidence
   provided. The scores given by the Committee after verification with the documentary evidences as
   provided by the Bidder shall be considered final.

3. Only those firms who secure at least 70% and above marks as per selection criteria mentioned above
   at section VII shall be considered for opening of Financial bid.

4. In case of tie, the following sequence shall be adopted for selection:
       a) The Audit Firm having longer experience will be given preference based on the year of
       b) The Audit Firm having office in the City of the SPMCIL unit for which evaluation is
          being done .
       c) The Audit Firm having office in the State of the SPMCIL unit for which evaluation is
          being done
       d) The Audit Firm with a higher number of Fellow Members of the Institute of Chartered
          Accountants or Cost Accountants of India as partners will be considered.
       e) The Audit Firm with a higher number of Associate Members of the Institute of chartered
          Accountants and Cost Accountants of India as partners will be considered.

                                                Page 18 of 30
For the purpose of selection of the Internal Audit Firm in case of tie, only clause (a) mentioned above
will be considered. However, in a situation where even after considering clause (a), the tie continues,
the remaining clauses i.e. (b) to (e) will be considered individually until the tie is broken.
The present Statutory Auditors (as appointed by the C&AG) of the units will not be eligible for
bidding in compliance with the provisions of section 144 of the Companies Act, 2013.Accordingly,
the following shall also not be eligible for bidding:-

    Any of the partners of the firm doing Statutory audit of the units (to be referred as statutory audit
    Any of its parents, subsidiary or associate entity, if any,
    Any other entity whatsoever, in which the statutory audit firm or any of its partners have
    significant influence or control.
    Any other entity whose name or trademark or brand is used by the statutory audit firm or any of
    its partners.

                                              Page 19 of 30
                   Section VIII: AUDIT FEE & REPORTING REQUIREMENTS

           Audit fee

      i.   Audit Firms are required to quote the audit fees for Internal Audit of each unit separately as
           per defined price bid format at section XI. Keeping in mind the minimum Man-days required
           for each unit as given at section XII. It is to be noted that Evaluation of Firms shall be
           done for each unit separately.
  ii.      If required man days are not fulfilled by the audit firm after award of contract then
           payment will be deducted proportionately.
 iii.      No other expenses like TA/ DA / Boarding/Lodging will be reimbursed by the SPMCIL.
 iv.       GST or any other tax as applicable will be paid extra as per respective Tax Act.
  v.       The Firm shall be eligible for payment up to 25% of audit fee for each phase. Such fee shall
           be released only after submission of report for that phase followed by the bill and all
           supporting evidences/documents required to process such bills including wrap up discussion
           report with management for each Phases.
 vi.       The bill of fees should be duly accompanied by details of man power deployed in each phase
           of the audit assignment.
           Reporting requirement

    On completion of the Audit of the respective Audit Unit of each phase, the following steps should
be followed before finalization of the report and the partner of the firm should meet and discuss the
audit observations.

(i)    The salient audit observations of the respective preliminary Audit shall be discussed with the
       Head of Finance along with the GM of units so that timely corrective action may be taken
       and based on the outcome, a draft composite Audit Report covering all the Audit areas within
       the scope shall be compiled/prepared, including additional information if any, that may be
       provided/obtained during such discussions and rectifications carried out on the instance of
       audit. The report should also contain specific suggestions for improvements, if any.
(ii)   Based on the outcome of the discussions, the Audit Report thus compiled shall be structured
       as outlined hereunder:
Internal Audit Reports should be divided into five separate parts, namely:

Part-I Compliance and Report:

This part shall cover the comments of the Auditors on the adequacy of the compliance and action
taken for rectification of errors/discrepancies pointed out by previous auditor pertaining to earlier
phase and also Phase-I of the current year. It shall also contain the confirmation regarding
implementation of policies, systems, controls etc. to avoid the recurrence of such irregularities in
future. It may be ensured that the compliance report on audit observations pointed out in reports
relating to earlier audits is made and corrective actions taken on those points are furnished in the
Audit Report. In other words it may be ensured while conducting the audit, compliance report of the
audit observations pointed out in the earlier report of preceding period, is furnished along with the
corrective action taken. Physical Verification of Fixed Assets report shall also be given.

                                               Page 20 of 30
Part-II Important Observations / Findings:
        This part shall contain all such significant discrepancies observed during the current Audit
and the observations in which, the auditor feels immediate attention of management specifying the
financial implications, if any. In this part Auditor shall also bring the important areas requiring
improvement and their recommendation, if any. Also to indicate the improvements made by the
SPMCIL based on the audit observations. Further to report any deviations/observations from
policies, systems and procedures of SPMCIL.

Part-III Report on Testing of Effectiveness of Internal Controls:

       Perform Internal Financial control Audit as given in Scope of Work and submit the report
giving recommendations on the ways that the SPMCIL may address control weaknesses. The
Auditors would be required to include their findings in Part-III of their report.

Part-IV Report on Contracts/POs placed on single tender & nomination basis:

       It has been decided that internal auditors will report separately on Contracts/Purchase Orders
(POs) placed on single Tender/Nomination basis. The coverage of such contracts and the format for
such contracts and the format for such reporting is included in the statement below which may kindly
be adhered to.

Part-V Detailed Report:
        In this part, the Auditor shall furnish the detailed results of the Audit and Auditors
confirmation whether SPMCIL's system/guideline/propriety has been adhered to in the areas viz.
works including O&M contracts, procurement, operation, establishment records in Finance & HR,
establishment expenses, other expenses, depreciation, Commercial billing & its
realization/reconciliation, maintenance of fixed assets register, current assets, capital work in
progress, mandatory spares, stores, inter unit accounts, review of accounts, township, guest house
provision of liabilities.
        The Internal Auditor's report shall be in the same sequence as given in the scope of audit and
in case any item is not applicable to the audit unit, the same should be mentioned as nil.

                                            Page 21 of 30
       The report should be supplemented, in each Phase, by a statement indicating:

(I)    Particulars of records along with their volume (i.e. total no. of vouchers in each category for each
       phase) and value/volume checked as compared to the total volume and value of transactions viz.
       BRV/BPV/CRV/CPV etc. Similar statistics are required with reference to audit of contracts with the
       total no. of contracts awarded and the percentage of audit done.

(II)   A report indicating the number of Tender/Contracts awarded on single tender & nomination basis in
       two categories viz. (i) Value more than Rs. 5 Lac and (ii) Value up to Rs. 5 Lac and furnish the same
       in the following statement indicating the contracts selected for review.

       Sl.No. Package Awarded          LOA No.     Award      Whether       Proprietary Policies        &
              Name    Party            & Date      Value (Rs. items/Source              Procedures      for
                                                   Lac)       Standardization/Urgency award of contracts
                                                                                        have been adhered
                                                                                        to (Yes/No), if No,
                                                                                        state the reasons


       (III) A summary report indicating the important observations for each phase and for each area.
       (IV) A statement indicating the audit personnel deployed (designation) including the visits of
       partners and the period of audit for each substation. It is expected that the entire scope is covered in a
       systematic manner and to facilitate the reporting as per the requirement.
       (V) The report should be furnished for each audit unit/office separately.

                                                     Page 22 of 30
                        Section IX:QUALIFICATION / ELIGIBILITY CRITERIA

        The qualification criteria are as under:-

   i.       Bidder firm should have conducted one Statutory/Internal audit in last 5 years of any
            organisation working on SAP ERP Platform.
  ii.       Bidder firm should not have suffered any financial loss for more than one year during the last
            three years.
 iii.       Bidders firms should have office at one location (at least) out of below mentioned cities:-
             a. Delhi/NCR          f. Hyderabad
             b. Mumbai             g. Bhopal
             c. Kolkata            h. Indore
             d . Nashik            i. Hoshangabad
             e . Dewas

Only those bids that meet all the eligibility requirements shall be considered for Stage 2 i.e.
Technical evaluation.

                                                    Page 23 of 30
                                    Section X: Tender Form


NEW DELHI - 110001

Ref: Your Tender document No. ..............................dated ............

We, the undersigned have examined the above mentioned tender enquiry document, including
amendment No. --------, dated ----------(if any), the receipt of which is hereby confirmed. We now
offer to deliver service in conformity with your above referred document for price quoted in
price bid, attached herewith and made part of this tender.

If our tender is accepted, we undertake to perform the services as mentioned above, in
accordance with the delivery schedule specified in section xiv of this document.

We further confirm that, if our tender is accepted, we shall provide you with a performance
security of required amount in an acceptable form in terms of GCC clause 6, read with
modification, if any, in Section V ­ "Special Conditions of Contract", for due performance of the

                                            Page 24 of 30
      Section XI: Price / Financial bid format

Sl.      Name of units             Partner fee    Qualified           Assistants           Grand total
no.                                               assistants          Fee
                                   (a )                               (C)

1        IGM, Mumbai

2        IGM, Kolkata

3        IGM, Hyderabad

4        IGM, Noida

5        CNP, Nashik

6        BNP, Dewas

7        ISP, Nashik

8        SPP, Hyderabad

9        SPM, Hoshangabad

10       Corporate       office,

          (1) GST shall be paid extra as applicable.
          (2) The fees mentioned above are for all the four phases viz, phase ­I, phase ­II, Phase ­III &

          (3) The audit fees for financial year 2020-21 (if extended by one year) will remain the same as

               quoted for the first year i.e. 2019-20.
          (4) Firms have to quote fees unit wise as L1 will be decided unit wise. It is not mandatory for

               firms to quote for all the units.
          (5) Evaluation will be done for each unit separately based on the selection criteria mentioned at

               section VII.

                                                   Page 25 of 30
                                Section XII: MAN-DAYS REQUIREMENT

                                          Minimum man day requirement
   S.No. Name of the units                Partners           Qualified      Assistants(including at
                                                             Assistants     least one semi qualified
                                          4 (one visit per   36             72
   1       IGM, Mumbai
                                          4 (one visit per   36             72
   2       IGM, Kolkata
                                          4 (one visit per   24             48
   3       IGM, Hyderabad
                                          4 (one visit per   24             48
   4.      IGM, Noida
                                          4 (one visit per   48             96
   5       CNP, Nashik
                                          4 (one visit per   48             96
   6       BNP, Dewas
                                          4 (one visit per   48             96
   7       ISP, Nashik
                                          4 (one visit per   24             40
   8       SPP, Hyderabad
                                          4 (one visit per   48             96
   9       SPM, Hoshangabad
                                          4 (one visit per   24             40
   10      Corporate office, Delhi

 1. The firm has to quote rates separately against the each location mentioned above.
 2. The allocation of manpower by audit firm amongst phases will be as follow:-
    i)     Quarter ended June               : 25%
    ii)    Quarter ended September          : 25%
    iii)   Quarter ended December           : 25%
    iv)    Quarter ended March              : 25%
3. The man-days requirement is exclusive of travel time.
4. For better monitoring of audit assignment, SPMCIL units shall maintain records of man power
   deployed for each phase by the Firm. A man day shall consist of minimum 8 hours each day and
   shortfall in working hours will be adjusted on pro rata basis. However, there will not be any
   additional payment for the manpower deployed in excess of the minimum man days.

                                                Page 26 of 30
                             Section XIII EARNEST MONEY DEPOSIT
i.         The bidder firm shall be required to submit earnest money deposit (EMD) of Rs. 4500/- for
           financial bid of each unit/office along with the bid.
ii.        The EMD is required to be submitted only in one of the following forms:
               a) Account Payee Demand Draft or
              b) Fixed Deposit Receipt or
              c) Banker's cheque

iii.       The demand draft, fixed deposit receipt or banker's cheque shall be drawn on any scheduled
           bank in India in favour of SPMCIL.
     iv.    The EMD shall remain valid for a period of forty five (45) days beyond the tender validity

The internal audit shall be conducted in accordance with the timelines as specified below:-
S.No. Particulars                                                               Due Date

A          Internal audit for quarter ended
           June 2019 (Phase ­ I)
           Submission of final Audit report                                     31.07.2019
B          Internal audit for quarter ended
           September 2019 (Phase ­ II)
           Submission of final Audit report                                     31.10.2019
C          Internal audit for quarter ended
           December 2019 (Phase ­ III)
           Submission of final Audit report                                     31.01.2020

           Internal audit for quarter ended
D          March 2020 ( Phase-IV)
           Submission of final Audit Report
   Any delay beyond 15 days in furnishing of internal audit report consequently for two
   phases due to non-deployment of manpower or any other reason attributable to the audit
   firm within stipulated dates mentioned as above will render audit firm to disqualify for
   future assignment and their nomination will not be considered for subsequent years.

                                              Page 27 of 30
                         Section XV: SECURITY DEPOSIT

i.      The selected firm shall be required to submit security deposit of the value of 10% of
        the total annual contract value within 21 days from the date of award of contract, valid
        up to sixty days after the date of completion of all contractual obligations by the
        supplier, including the warranty obligations (if any).
ii.     The Performance security shall be denominated in Indian Rupees or in the currency of
        the contract and shall be in one of the following forms:

            a. Account Payee Demand Draft or Fixed Deposit Receipt drawn on any
               Scheduled bank in India, in favour of SPMCIL, New Delhi.
            b. Bank Guarantee issued by a Scheduled bank in India, in the prescribed form as
               provided in section XV of this document.

iii.    The Security deposit shall be released by SPMCIL after 60 days from the date of
        satisfactory execution of the work order/contract in all respects.
iv.     No interest shall be payable to the firm on the amount of security deposit.

In event of default on the part of firm in satisfactory execution, security deposit shall be
forfeited by SPMCIL. The forfeiture of security deposit shall be without prejudice to any other
rights arising or accruing under relevant provisions of contract like penalty/damages for delay
or risk execution of work including suspension of business dealings for a specific period.

                                      Page 28 of 30
         v.         Bank Guarantee Format for Performance Security

                                               [insert: Bank's Name, and Address of Issuing Branch or Office]

Beneficiary:                                   [insert: Name and Address of SPMCIL]



WHEREAS ........................................................................................... (Name and address of
the     supplier)    (hereinafter   called   "the   supplier")   has   undertaken,    in   pursuance      of   contract
no.................................. dated ............. to supply (description of goods and services) (herein after
called "the contract").

AND WHEREAS it has been stipulated by you in the said contract that the supplier shall furnish you with
a bank guarantee by a scheduled bank recognized by you for the sum specified therein as security for
compliance with its obligations in accordance with the contract;

AND WHEREAS we have agreed to give the supplier such a bank guarantee;

NOW THEREFORE we hereby affirm that we are guarantors and responsible to you, on behalf of the
supplier, up to a total of .................. ...... ......... ...... ...................... (amount of the guarantee in
words and figures), and we undertake to pay you, upon your first written demand declaring the supplier to
be in default under the contract and without cavil or argument, any sum or sums within the limits of
(amount of guarantee) as aforesaid, without your needing to prove or to show grounds or reasons for your
demand or the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the supplier before presenting us
with the demand. We further agree that no change or addition to or other modification of the terms of the
contract to be performed thereunder or of any of the contract documents which may be made between
you and the supplier shall in any way release us from any liability under this guarantee and we hereby
waive notice of any such change, addition or modification.

                                                     Page 29 of 30
We undertake to pay SPMCIL up to the above amount upon receipt of its first written demand, without
SPMCIL having to substantiate its demand.

This guarantee will remain in force for a period of Sixty days after the currency of this contract and any
demand in respect thereof should reach the Bank not later than the above date.


(Signature of the authorized officer of the Bank)


Name and designation of the officer


Seal, name & address of the Bank and address of the Branch


Name and designation of the officer



Seal, name & address of the Bank and address of the Branch

                                                                Page 30 of 30
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