1 KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED (GOVERNMENT OF KARNATAKA UNDERTAKING) #16/I, Millers Tank Bed Area, Vasanthnagar Bangalore-560052. Ph:080 22096603,22096606
No:KFCSC/IAW/A.I.A/18/2021-2022 Date: 04-06-2021
SUB: Tender Notification for Appointment of Internal Auditors.
The Karnataka Food and Civil Supplies Corporation Limited (KFCSC) Bangalore, invites tenders through e-Procurement portal from practicing Chartered Accountants & CA firms (as per KTPP Act 1999) for appointment of centralized Internal auditors to take up Internal Audit of KFCSC for the period 1st July -2021 to 31st March-2022
Tender Reference Number KFCSC/IAW/A.I.A/18/2021-22 EMD Date of publishing 1,00,000.00 Pre Bid meeting 04-06-2021 Last date & time for submission of Bids Date/Time of opening of Technical Bid. 08-06-2021 11.00 AM (Zoom Link Send Date/Time of opening of Financial Bid Later) Address for communication 11-06-2021 at 17.00 PM 14-06-2021 at 11.00 AM
16-06-2021 at 15.00 PM
Karnataka Food and Civil Supplies Corporation Ltd, No.16/I, Millars Tank Bed Area, Vasanthanagar, Bangalore- 560052
The Detailed Tender documents can be obtained/downloaded from e-procurement portal https://eproc.karnataka.gov.in. The Managing Director reserves the right to accept or reject any or all bids without assigning any reason whatsoever.
2 Managing Director KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED
(GOVERNMENT OF KARNATAKA UNDERTAKING) #16/I, Millers Tank Bed Area, Vasanthnagar,
Bangalore-560052. Ph:080 22096603, 22096606
No: KFCSC/IAW/A.I.A/18/2021-22 Date: 04-06-2021
SUB:-TENDER NOTIFICATION FOR APPOINTMENT OF INTERNAL AUDITORS.
The Karnataka Food and Civil Supplies Corporation Limited (KFCSC) of Bangalore, invites tenders through e-Procurement portal from practicing Chartered Accountants & CA firms (as per KTPP Act 1999) for appointment of centralized Internal Auditors for the period 1st July-2021 to 31st March-2022. Last date for submission of Bids Date:11/06/2021. 17.00. Date/Time of opening of Technical Bid.14/06/2021, 11.00 hrs and Financial Bid on 16/06/2021, 15.00 hrs. For further information kindly see https://kfcsc.karnataka.gov.in and visit e-procurement portal https://eproc.karnataka.gov.in. The Managing Director reserves the right to accept or reject any or all bids without assigning any reason.
3 KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED (GOVERNMENT OF KARNATAKA UNDERTAKING) #16/I, Millers Tank bed area, Bangalore-560052. Ph:080 22096603, 22096606
No: KFCSC/IAW/A.I.A/18/2021-22 Date: 04-06-2021
SUB: TENDER NOTIFICATION FOR APPOINTMENT OF INTERNAL AUDITORS.
INVITATION FOR BIDS 1. The Managing Director, KFCSC, Bangalore invites tenders from eligible Chartered
Accountants/CA firms for appointment of centralized internal auditor for carrying out the monthly Internal Audit assignments of District offices & Head Office of KFCSC Ltd,. for the period 1st July-2021 to 31st March 2022. The Bidders are required to submit details of their capability to undertake the work stating that they shall abide by all rules and regulations, terms and conditions as per tender documents. Opening pre-qualification bid or technical bid will be followed by opening of financial bid of qualified bidders. The Chartered Accountants/CA firms shall quote the audit fee activity wise for all the work stated in tender document. The same will be valid for the entire period. 2. Bids must be accompanied By EMD of Rs. 1,00,000.00 to be paid online through e- Procurement portal. 3. Bid documents may be downloaded through Government of Karnataka e- procurement website, https://eproc.karnataka.gov.in
4 SECTION-2 TERMS AND CONDITIONS
1) SCOPE OF SERVICE: The bidder is required to apply to carry out the monthly internal audit work of District/Head office as per the scope of audit given in Annexure-III
2) ELIGIBILITY CRITERIA:
(a) Chartered accountants/ firms with ACA/FCA qualification shall take participate in bidding.
(b) CA/CA firm shall bid Centralized for District office & Head office as one unit. There are 28 District offices (units) and Head office.
(c) Bids must be accompanied By EMD of Rs. 1,00,000.00 which should be paid online through e-Procurement portal.
(d) CA/CA firm shall quote audit fees activity wise. Please refer the scope of audit- Annexure-III.
(e) The CA/CA firm must have its head office/branch in Bengaluru. (f) CA/CA firm shall have sufficient number of chartered accountants and auditing
staff. (g) CA/CA firm required to have minimum of 3 years‟ experience. (h) The terms and Conditions/scope of audit is to be signed and to be enclosed. (i) A set of hard copies of the required documents for the technical bid should be
submit to the Managing Director on or before the date and time of opening of technical bids. (j) Turnover of the firm for the last three preceding Financial Year should not be less than Rs.10 Lakh for each year.
3) DOCUMENTS COMPRISING THE TECHNICAL BID a) Attested copy of ACA/FCA Certificate of Practice. b) Attested copy of PAN CARD. c) Attested copy of GST Registration. d) Attested copy of Income Tax assessment orders for the last three financial years. e) Attested copy of experience certificate –past 3 years‟ experience certificate in execution of similar contracts, if any. f) Attested copy of partnership agreement, in case of partnership firm. g) Attested copy of man power description -number of CAs and number of other staff.
5 h) Attested copy of affidavit for non-conviction:-Affidavit from the CA/CA firm declaring that they have not been convicted for any offence for having any criminal cases under any act or orders there under regarding any conviction in previous years/present. (In Rs.20/-stamp paper and to be attested by the notary)
i) The bidders should upload the entire bid documents i.e., complete tender document (Section 1, Section2, Annexure I to III) duly signed and stamped bid form etc., as a token of acceptance of all terms and conditions.
j) Filled & signed copy of annexure-1 (Application form) the applicant should upload Annexure –I.
4) BID FORM a) Technical details should be submitted along with documentary proof otherwise evaluation will be done ignoring that item as not available. This format should not be changed in any manner. Addition/deletion/alteration of the text will automatically render the tender invalid and therefore, will be summarily rejected. b) Bidders shall furnish all the documents as specified in tender document. The bidders should upload the entire bid documents i.e., complete tender document duly signed and stamped including all Annexure, bid form etc., as a token of acceptance of all terms and conditions. c) Audit fees should be quoted in Financial bid format for rendering service of audit work. This format should not be changed in any manner. Addition/deletion/alteration of the text will automatically render the tender invalid and therefore will be summarily rejected. d) The bidder is requested to examine all instructions, forms, terms and specifications in the Bid documents, failure to furnish all the information required as per Bid Documents or submission of the bids not substantially to the Bid Document in every respect will be at the bidder‟s risk which may result in rejection of the Bid. e) At any time, prior to the date of submission of bid, KFCSC may, for any reason, whether on its own initiative or in response to a clarification required by a prospective bidder, modify the bid documents by amendments. f) The amendments shall be notified in e-procurement portal and these amendments will be binding on them. g) The tenders will undergo evaluation at every stage of processing and any tender found at any stage not in conformity with the stipulated tender conditions including specifications/found to have uploaded defective and incomplete documents or found defective will be rejected.
6 5) BID PRICES
(1) The CA/CA firm shall quote the price as per Annexure-II attached to bid document. The composite price shall indicate all the types of Taxes, including GST etc., as applicable from time to time. The price shall also include all other cost like travelling, hotel and refreshment cost etc.,
(2) The price quoted by the bidder shall remain fixed during entire period of contract & shall not be subject to variation on any account. A bid submitted with an adjustable price quotation will be treated as non-responsive and rejected.
6) EMD & BANK SECURITY DEPOSIT
(A) The bidder‟s shall furnish an irrevocable performance Bank Guarantee for Rs. 1,00,000/-(Rupees One Lakh only) issued by Scheduled Bank which should be valid up to 60 days from the period of completion of the contract. However, no interest shall be payable on the bank guarantee & the same will be converted into performance security. The bank security deposit is required to protect the KFCSC against risk of bidder‟s conduct which may warrant the security‟s forfeiture.
(B) Applicant CA/CA firm shall pay the Earnest Money Deposit (EMD) of Rs 1,00,000.00. In the e-procurement portal using any of the following payment modes: a) Credit Card b) Direct Debit c) National Electronic Fund Transfer (NEFT) For details on e-Payment services, refer to e-procurement portal.
(C) Any bid not secured in accordance with Terms and conditions will be rejected by KFCSC as non-responsive.
(D) The successful bidder‟s EMD amount may be forfeited if the bidder fails to sign the contract.
(E) EMD of unsuccessful bidders shall be returned after the tender is awarded and accepted by the successful bidder.
(F) Format and signing of Bid. Bidder shall submit the Bid electronically within due date. The bid document shall be signed by the bidder.
(G) Deadline for submission of bids. (a) Bids must be submitted online in the e-Procurement in time. (b) KFCSC may extend the deadline for submission of bids by issuing an amendment, which in case all rights and obligations of the KFCSC and the
7 Bidders, previously subjected to the original deadline, will then be subject to the new deadline.
(H) Late Bids. In online e-procurement system, Bidder will not be able to submit the bid after the deadline.
(I) Bid validity (a) The bids shall remain valid for 90 days after the date of opening of bids. A bid valid for a shorter period shall be rejected as non-responsive. (b) A bidder, accepting the request of KFCSC for an extension to the period of bid validity in exceptional circumstances, will not be permitted to modify their bid.
(J) Process to be confidential Information relating to the examination, clarification, evaluation, and comparison of Bids and recommendations for the award of a contract shall not be disclosed to Bidders or any other persons not officially concerned with such process until the award to the successful Bidder has been announced. Any effort by the Bidder to influence the KFCSC’s processing of Bids or award decisions may result in the rejection of their Bid.
(K) Clarification of Bids During evaluation of Bids, KFCSC may, at their discretion, ask any Bidder for clarification of their Bids, including breakup of charges. The request for clarification and the response shall be in writing or through email, but no change in the price or substance of the Bid shall be sought, offered or permitted.
7) FINANCIAL BID: The bidder shall quote the rate in the financial bid as per Annexure-II.
8) TENDER EVALUATION The tender submitted by the bidder will be opened by the Tender scrutiny Committee (Members are General Manager, Deputy General Manager, District Manager Admin, Accounts Case Worker and Audit Case Worker, Tender evaluation authority is General Manager and Tender Approval Authority is Managing Director). If the documents in technical bid are found to be in order, as specified above, only then the financial bid will be opened. Incomplete documents in the Technical qualification will result in rejection of the entire tender and the financial bid. The „Procurement Entity‟, after due evaluation, selection in the order of priority and call upon Lowest Tenderer to furnish Security Deposit and execute the agreement. The “Procurement Entity” before passing the order accepting a tender may negotiate with Lowest Tenderer.
8 In the event of any discrepancy in respect to the rates quoted, the “Procurement entity” reserves the right to accept the lowest rate, at its discretion.
9) AWARD OF CONTRACT The KFCSC shall consider placement of Letter of Acceptance (LOA) to those bidders (in duplicate) whose offers stands L1 in the tender process. The bidders shall sign and return one copy of the LOA in token of their acceptance along with the performance security within three days.
10) KFCSC LTD., RESERVES RIGHT TO ACCEPT ANY BID AND TO REJECT ANY BIDS: The KFCSC shall not be bound to accept the lowest or any tender and reserves to itself the right to accept or reject any bid or to accept whole or a portion of tender, as it may deem fit, without assigning any reason there-off and without incurring any liability to the affected bidder(s) for the action of KFCSC. The KFCSC reserves the right to remove Internal Auditor, if his work is not satisfactory (if audit observations are superficial & reports are not submitted on time).
11) SIGNING OF CONTRACT Signing of Agreement shall constitute the award of contract on the bidder.
12) ANNULMENT OF AWARD Failure of the successful bidder to comply with the requirement shall constitute sufficient ground for the annulment of the award and forfeiture of the bid security in which event KFCSC may make the award to any other bidder at the discretion of KFCSC or call for new bids.
13) TERMS OF PAYMENT Payment will be made at Head office of “Procurement Entity” after deducting the applicable taxes etc. The payment will be made after timely submission of the internal audit reports of a particular month and receipt of the bill. For further details, refer Annexure - III Further, the audit reports as per the scope should be submitted by 15th of next month to the Managing Director KFCSC with a copy to District Manager. The audit report will be scrutinized in internal audit wing at head office. For delay in submitting report, 10% of the admissible bill amount, for that month will be deducted.
TERMINATION OF CONTRACT
In case there is any continuous delay in submitting the audit report for 3 months (quarter) and any default by the CA/CA firm in any of the terms and conditions
9 (whether General, special, statutory), KFCSC may, without prejudice to any other right/remedy which shall have accrued or shall accrue thereafter, terminate the contract, in whole or in part, and KFCSC will forfeit the security deposit by giving one month‟s notice in writing to the service provider. All instructions, notice and communications under the contract given in writing and if sent to the last known place of business, shall be deemed to be served on the date, even in ordinary course of post these would have been delivered to the service provider. Notwithstanding anything contained herein, KFCSC also reserves the right to terminate the contract at any time or stage during the period of contract, by giving one month notice in writing without assigning any reason and without incurring any financial liability whatsoever to the service provider.
14) OTHER OBLIGATIONS a) KFCSC prior to the expiry of the tender validity period shall notify the bidder whose tender is accepted for the award of the contract. The terms of the accepted offer shall be incorporated in the acceptance letter issued. b) Notwithstanding the above KFCSC reserves the right to accept or reject any tender and to cancel the bidding process at any time prior to the award of the contract. c) The undersigned reserves the right to select CA firms proposed by the successful bidder and also the right to ask for replacement at any time. d) The replacement shall be given within three days and for delay of each day, a penalty of Rs.100/- will be levied. e) TDS shall be made in the bills of successful bidder. f) Security deposit will not carry any interest and will be refunded on cessation of agreement.
Managing Director KFCSC LTD
We agree to the above terms and conditions.
CA/CA firm Name & sign.
APPLICATION FOR APPOINTMENT OF INTERNAL AUDITORS FOR KFCSC, BANGALORE FOR THE PERIOD FROM 1st JULY 2021 TO 31st MARCH 2022
To, The Managing Director, Karnataka Food & Civil Supplies Corporation Ltd., # 16/I, Millers Tank Bed Area, Vasanthnagar, Bangalore-560052.
With reference to your letter dated ……… After going through the Scope of audit we are interested to take up Internal Audit work of your esteemed organization for the period from 1st July-2021 to 31st March 2022 at the rate remuneration of Rs.-------------. I/we furnish herein below the particulars as required by you.
1) Name of the CA/CA firm and address With Telephone and e-mail
2) Membership No., and PAN No. 3) Year of establishment 4) Experience of last three years
Years as Internal Auditor/Statutory Auditors of any Karnataka Government Under takings. (enclose documents) if any 5) No of staff of the CA company/CA firm a) Chartered Accountants b) others
Place: Signature with Seal Date:
11 ANNEXURE –II
Financial Bid should be in form-B indicating audit fees after going through the Scope of Audit.
SIGNATURE OF THE TENDERER
Form-B (FINANCIAL BID) I/We hereby offer to take up the Internal Audit work of your Corporation at the fees indicated against
Sl Particular Frequency Audit Taxes Total One time Fee No
1 Process Documentation
2 Monthly Auditing Monthly
3 Financial review, monitoring Monthly
4 Statutory Compliance One time in
5 Opinions As per the
6 Compilation and Submission One time in
of Annual Accounts to year
Note: Audit fee to be quoted based on the frequency of the activity. For Sl. No., 1, 4 & 6 is considered as one activity for the full year. Fee for Sl. 2 & 3 to be quoted month-wise with total fee for the year. The fee quoted should be all inclusive (out of pocket expenses, taxes and any other expenses) no additional reimbursement will be allowed.
12 SIGNATURE OF THE TENDERER WITH SEAL
KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED, BANGALORE
Scope for Appointment of Internal Auditor (Centralized Audit Top-Down Approach) for the Financial Year 2021-2022, i.e. July 2021 to March 2022
1. Process Documentation: One-time activity
Karnataka Food & Civil Supplies Corporation Limited (KFCSC) is a Government of Karnataka undertaking, established under the Companies Act. Its major activates are.
a. Procurement & Distribution of Food grain for Public Distribution System (PDS)
b. Purchase of Food Grains under Minimum Support Price Operations (MSPO) from farmers.
c. Procurement & Distribution of Food grain for Mid-Day-Meals (MDM) KFCSC is also in the operations of procurement & distribution of Kerosene oil for fisheries and also runs LGP units & Petrol Bunk in few districts.
Process documentation includes preparation of individual standard operating procedure (SOP) for PDS, MSP, MDM & Other operations in English & Kannada. The SOP should be all inclusive & self-explanatory consisting of Title page, Table of contents Overview, Purpose, Benefits, Step-by-step Process flow, Guidelines for technical aspects, Details of Checks & Balances available, under the existing best Accounting practices & Taxation policies applicable to the organization. The document should provide step-by-step process flow of every activity i.e activities to be adhered at Wholesale Point (WSP), District Office and Head office. With special reference to the technical aspect of accounting guidelines.
13 The SOP should also act as training material for staff and document of reference in future.
Hence, the standard operating procedure is to have a set of written instructions that can describe how to perform a task or activity. They‟re in- depth rules that could be followed by anyone and should leave very little ambiguity around what needs to be done.
The document should be prepared in co-ordination with finance team of the organization.
The SOP should be prepared with in Twenty (20) Working Days from the date of award of contract and submit to the Managing Director. For delay in submitting of SOP, 20% of the admissible bill amount will be deducted. Further, considering the impact of the delay in submission management holds the power to terminate the part of full of the contract and may also recommend for blacklisting of the organization.
Through Process Documentation the organization seeks to make accounting/finance knowledge and asset of the organization.
2. Monthly Auditing: – Ongoing Monthly. (For FY 2021-2022 i.e. JULY 2021-MARCH-2022) There are 40 business units, each unit should be audited two (2) times in
a span of one financial year audit has to be carried out by visiting the unit office. Units/Division may be selected randomly on rotational basis. The auditor should submit the Audit plan to the District Manager (DM) Fifteen days (15) in advance. The audit plan should be prepared keeping in view below requirements.
Analyzing and Incorporating Accounting/Financial discipline in the organization.
The audit process should support in achieving goals and objectives of the organization.
14 Applicability and implementation of applicable accounting standards and taxes related provisions should be reviewed.
A detailed report may be submitted with the details of grey areas, road map for improvements and assisting in implementation of improvements.
The audit report should be all inclusive and covering the below aspects Follow of Proper Controls Adoption of Applicable Accounting System Asset Protection of the organization Checks & Balances for minimizing/negating the errors Detection of Fraud, Reporting of stock shortages Any other details
The audit report has to be submitted on or before 15th of the current month for previous month audit.
The purpose of two audits in one financial year is to identify the areas of improvement and work towards implementation of the proposed changes within the same financial year. The auditor has to certify the annual accounts prepared by the district office based on these audits.
Management holds the powers to draw/modify the audit plan based on the requirement of the organization.
3. Financial review, monitoring and reporting – Ongoing Monthly.(For FY 2021-2022 i.e. JULY-2021-MARCH-2022)
Financial reporting refers to standard practices adopted to give the Management an accurate interpretation of an organization‟s finances, including their revenues, expenses, profits, capital, and cash flow, as formal records that provide in-depth insights into financial information.
Success of financial reporting depends on implementation of basics accounting principles of Book keeping, meeting the statuary obligations such as PT, TDS, GSTR-7 Etc. within prescribed time frame. And maintaining of these records as per the legal requirement gives total insight of the transaction at any given point of time.
15 Therefore, the internal auditor is required to prepare a check list consisting of accounting activities, Procedures, Compliance (Taxation, Statutory or Any other) and any other details may be prepared assigning deadlines for every activity.
Scrutinizing, reporting and issuance of Final settlement (bay-baki) certificate monthly for retiring employees.
Internal Auditor has to conduct a Video Conference (VC) monthly with all DM‟s review the work completion status, find out the areas of improvement and submit a compliance to the management with suggestions and details of way forward for implementation. The Video Conference (VC) has to be completed on or before of 15th of every month and report needs to be submitted to the Managing Director not later than 20th of that month.
4. Statutory Compliance – One Time (For FY 2020-2021)
Every year the organization has to file returns related to Income Tax and GST compliance. The internal auditor has to provide consultancy service for preparing the returns with accurate details and file to the concerned authorities with in stipulated time. Filing of form GSTR -9 & GSTR 9-C of the Corporation, Income tax returns for the financial year 2020-2021, and any other filings as per Govt. requirement.
Further, any changes in compliance/applicability of new compliance relating to Direct & Indirect Tax may be reviewed monthly, an annual compliance audit report may be submitted ensuring that organization is following external laws, rules, and regulations or internal guidelines with suggestions and details of way forward for implementation.
5. Opinion: Case to case basis.
Providing opinion on implementation/changes in any policy by State or Central Government.
6. Compilation and Submission of Annual Accounts to Statutory Auditors: Annually (For FY 2020-2021)
The process includes Verification, Compilation, and Consolidation of accounts Preparation & Presentation of Financial Statements as per Indian Accounting Standards (Ind AS) for the Financial Year 2020-21. Details of work and time schedule are as under:
16 1. Compilation & Verification of final accounts sent by the District Offices and recommending corrections if any. Further, Consolidation of final accounts of the Corporation as per Schedule III of the Companies Act, 2013. This work shall be completed on or before 31stJuly 2021. You shall also co-ordinate with the Statutory Auditors in the finalization of accounts.
2. You are required to prepare the Consolidated Financial Statements in excel format to check the correctness of the Statements with that of the Financial Statements generated from the FIST software.
3. Attending to the queries as and when raised by the Statutory Auditors and A.G. Auditors in co-ordination with the Finance Section.
4. Based on the 2020-21 approved accounts, the financial year 2021-22 Opening Balances of the accounts of each unit as on 01-04-2021 shall be prepared.
5. If required, you have to do the hand holding and visit the District Offices for Compilation and Preparation of accounts at District Offices.
6. For undertaking tours on official work, you will be reimbursed TA /DA as admissible.
7. You have to study the FIST software and suggest the up-gradation of the same, if any.
8. If the work as assigned above is not completed by you within the stipulated time penalty shall be imposed.
9. The financial statement consisting of Balance Sheet, Income & Expenditure Statement, Cash Flow Statement and other statements/schedules as at 31-03-2021 with comparative for 2019-2020 as per Ind AS.
If need arises you need to attend the board meeting and present the financials to the Honorable Board Members
Auditors are requested to note that the above mentioned scope is issued only as illustrative guideline and should be construed as a part of the internal audit exercise and should not be considered as exhaustive or restrictive in any manner.
The scope for appointment of internal auditor is inclusive and may be modified, revised, updated based on the notifications of Companies Act 2013, Income Tax
17 Act 1961, GST Act 2017 and any other situation based needs in concurrence with Internal Auditor.