Small Industries Development
Bank of India

Request for Proposal (RfP) for
Concurrent Audit of Operations of
Treasury & Resource Management Vertical_SIDBI Mumbai

Small Industries Development Bank of India

Audit Vertical
4th FlOOR, SIDBI TOWER,

15, ASHOK MARG,
LUCKNOW - 226001
Website : www.sidbi.in
Tender No.2022SEP10/T000243841AV

THE INFORMATION PROVIDED BY THE BIDDERS IN RESPONSE TO THIS TENDER DOCUMENT WILL
BECOME THE PROPERTY OF SIDBI AND WILL NOT BE RETURNED. SIDBI RESERVES THE RIGHT TO
AMEND, RESCIND OR REISSUE THIS TENDER DOCUMENT AND ALL AMENDMENTS WILL BE ADVISED
TO THE BIDDERS AND SUCH AMENDMENTS WILL BE BINDING ON THEM.

(THIS DOCUMENT SHOULD NOT BE REUSED OR COPIED OR USED
EITHER PARTIALLY OR FULLY IN ANY FORM)

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Critical Information Summary

1) The RfP is posted on the SIDBI website www.sidbi.in. SIDBI 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 shall be notified
on SIDBI’s website www.sidbi.in and these will be binding on the bidders.

2) 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.

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

4) In case of any clarification required by SIDBI to assist in the examination, evaluation and
comparison of bids, SIDBI 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.

5) Please note that all the information required as per the bidding document needs to be
provided. Incomplete information in these areas may lead to non-selection.

6) 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, if bidder happens to be the successful bidder.

7) SIDBI has the right to reject any or all bids received without assigning any reason whatsoever.
NOTE:

SIDBI SHALL NOT BE RESPONSIBLE FOR NON-RECEIPT / NON-DELIVERY OF THE BID
DOCUMENTS DUE TO ANY REASON, WHATSOEVER.

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Schedule of events:

Sr. Bid Reference - 2022SEP10/T000243841AV

No.

Purpose Concurrent Audit of Operations of Treasury &
1 Resource Management Vertical_SIDBI Mumbai

No. of Envelopes (Non window, One (1) Envelope for 1 Head office Vertical.
sealed) to be submitted

2 1 set of Hard copy should be submitted in

sealed single envelope for 1 Head office

Vertical.

3 Last date of submission of Bids October 04, 2021 (Monday) at 2:00 p.m

4 Venue, Date and Time of opening October 04, 2021 (Monday) at 3:00 p.m at the

of Bids. address given at Sr. No. 8.

5 Date of Pre-bid meeting September 27, 2021 (Monday) at 4:00 p.m

6 Response to clarification/pre-bid September 28, 2021 (Tuesday) at 4:00 p.m
meeting

7 Bid Validity 6 months from the last date of submission of Bids.
8 Address for submission of Bids
The General Manager
Contact Persons: Audit Vertical
SIDBI, 4th Floor
SIDBI TOWER,
15, ASHOK MARG,
LUCKNOW - 226001
Ph : 0522-2288546-50
E-mail: auditvertical_ho@sidbi.in

Name & Designation Phone e-mail
9
0522- 4259788 auditvertical_ho@sidbi.in
Arup Kumar Vishwakarma[M]

Arun Kumar Behera [AGM] 0522-4259753 auditvertical_ho@sidbi.in

If a holiday is declared on the dates mentioned above, the proposals shall be received /
opened on the next working day at the same time specified above and at the same venue
unless communicated otherwise.

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Introduction and Disclaimers

1.1 Purpose of RfP

The purpose of RfP is to shortlist experienced professional firm/ Limited Liability
Partnership (LLP) of Chartered Accountants, for undertaking Concurrent Audit of
Operations of Head Office Verticals (HO) of SIDBI at the following locations.

Table – I

S. Name of the HO Vertical Head Portfolio Appendix on
No. Office as on August 31, Scope of
work
1 Treasury & Resource Mumbai 2021
Management Vertical (TRMV) (` in Crore) Appendix-I

` 28,000/-

1.2 Purpose of RfP

The Request for Proposal document contains statement 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 SIDBI. Neither
SIDBI nor any of its employees, agents, contractors or advisors gives any representation
or warranty, express or implied, as to the accuracy or completeness of any information
or statement given or made in this document. Neither SIDBI nor any of its employees,
agents, contractors, or advisors has carried out or will carry out an independent audit or
verification exercise in relation to the contents of any part of the document.

1.3 Disclaimer

Subject to any law to the contrary, and to the maximum extent permitted by law, SIDBI
and its officers, employees, contractors, agents and advisors disclaim all liability from
any loss or damage (whether foreseeable or not) suffered by any person acting on or
refraining from acting because of any information including forecasts, statements,
estimates or projections contained in this RfP document or conduct 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 SIDBI or any of its officers,
employees, contractors, agents, 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 SIDBI, 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 SIDBI until
execution of a contractual agreement.

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1.6 Applicant 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 SIDBI may in its absolute discretion apply
selection criteria specified in the document for evaluation of proposals for shortlisting /
selecting the eligible Concurrent Auditor(s). The RfP document will not form part of any
contract or arrangement, which may result from the issue of this document or any
investigation or review carried out by a Recipient.

1.8 Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all the
information / data / operations, etc. of SIDBI.

1.9 Errors and Omissions
Each applicant should notify SIDBI of any error, omission, or discrepancy found in this
RfP document.

1.10 Acceptance of Terms
An applicant will, by responding to SIDBI for RfP, be deemed to have accepted the terms
of this Introduction and Disclaimer.

2. Lodgment of RfP

2.1 RfP submission:

 RfP document submission is required to be done by October 04, 2021 (2.00 PM) as
under: -

Hard copy should be submitted at the following address in sealed envelope
superscribed at the top of the envelope –

“Request for Proposal (RfP) for Concurrent Audit of Operations of Treasury &
Resource Management Vertical (TRMV)”, at Mumbai.

The General Manager
Audit Vertical
Small Industries Development Bank of India (SIDBI)
SIDBI Tower, 15, Ashok Marg,
Lucknow – 226001 (U. P.)
Telephones: (0522) 2288546-50
Email: auditvertical_ho@sidbi.in

RfP must be submitted on or before the aforementioned closing date and time.
 Fax / e-mail copies of any submission are not acceptable and will be
rejected by the Bank.
 Copy of bids and attachments must be provided in a sealed envelope.

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

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
SIDBI. Applicants shall be deemed to license, and grant all rights to SIDBI 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.

2.2 RfP Validity Period

The proposal must remain valid and open for evaluation according to their terms
for a period of at least six (6) months from the time the RfP closes on the deadline for
lodgment of RfP.

2.3 Cost of RfP Document

No cost has been prescribed for the RfP Document.

2.4 One bid / application per applicant

 Applicant can submit application for engagement as concurrent auditor for
Treasury & Resource Management Vertical (TRMV), at Mumbai where
applicant has a regular office set-up, either head office or full-fledged branch
office(s) at Mumbai / Navi Mumbai / Thane districts.

Firms already engaged with SIDBI:
 SIDBI shall engage the services of a firm / LLP for carrying out Concurrent Audit

of only one HO Vertical of SIDBI. Accordingly, in case the applicant has already
been engaged as Concurrent Auditor by SIDBI for any of its branches / RO and
or HO Verticals, such Firm / LLP will not be eligible to apply under this RfP.

 If the Concurrent Auditor’s services are not availed, under such circumstances
also, one-year cooling period will be applicable from the date of discontinuation
of the assignment for the concurrent audit of the same BO /RO / HO Vertical.

 Any CA firm terminated by SIDBI shall not be eligible to apply under this RfP

2.5 Late Applications

Any RfP / application received after the deadline for submission of the bids /
applications will be treated as “Late Application” and such late applications shall not
be considered at all for competitive consideration.

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2.6 Requests for Proposal

SIDBI may, in its absolute discretion, seek additional information or material from any
applicants after the RfP closes and all such information and material provided must be
taken to form part of that Applicant’s response.

Applicants should provide details of their contact persons, Fax, Telephone, email and
full address(s) to ensure that replies to bids could be conveyed promptly.

If SIDBI, in its absolute discretion, deems that the originator of the question will gain an
advantage by a response to a question, then SIDBI reserves the right to communicate
such response to all Applicants.

SIDBI may, in its absolute discretion, engage in discussion or negotiation with any
Applicant (or simultaneously with more than one Applicant) after the RfP closes to
improve or clarify any response.

2.7 Notification

SIDBI will notify all short-listed Applicants in writing as soon as practicable about the
outcome of their bids. SIDBI is not obliged to provide any reasons for any such
acceptance or rejection.

2.8 Disqualification

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

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3 About SIDBI

3.1 Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under
an Act of Indian Parliament, is the Principal Financial Institution for the
Promotion, Financing and Development of the Micro, Small and Medium
Enterprise (MSME) sector and for Co-ordination of the functions of the
institutions engaged in similar activities.

SIDBI provides its services through a network of Branch Offices located all over
India. Detailed information on the functions of SIDBI is provided on the website,
www.sidbi.in

3.2 SIDBI offers several financial and non-financial products and services for catering
the financial and non-financial needs of Micro Small and Medium Enterprises
(MSMEs) through its field level offices. These include the following broad areas:

 Direct Finance
 Bills Finance
 Refinance
 Promotion and Development
 Micro-finance

4 Project Particulars:
The scope of work for Treasury & Resource Management Vertical at Mumbai is given
in Annexure- I

5 Fee Structure:

Selected firm for concurrent audit of TRMV, Mumbai, two CAs would need to be
deployed for, at Mumbai.

The award of contract to CA firms / LLPs to undertake concurrent audit will be as per
fee indicated by the Bank from time to time. The present fee is indicated below:

Head Office Vertical Outstanding Fee Payable Per Month

Portfolio/Average (excluding applicable
Transactions/day service tax, education

cess, etc.)

Treasury & Resource ` 28,000 Crore ` 50,000/-
Management Vertical (TRMV)

Note:

Maximum upto 5% annually enhancement in remuneration may be considered, if the contract is
renewed, after one year, provided the performance is found satisfactory.

No out of pocket expenses or traveling allowance / halting allowance would be paid to
the concurrent audit firm / LLP for carrying out the audit. However, the service tax,
education cess/GST, etc. would be paid by the Bank, as applicable, in addition to the
basic fees. The payment to the concurrent auditors would be subject to deduction of
tax at source, at applicable rates.

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6 Selection process

This RfP will be assessed on the following Selection process: -

Invite Request for Proposal (RfP) wherein Technical Evaluation information is
submitted in envelope.

Technical evaluation:

a) The Applicant is required to submit the details of its proposal in sealed
envelope. The envelope should be superscribed:

i. Request for Proposal (RfP) for Concurrent Audit of Treasury &
Resource Management Vertical (TRMV) at Mumbai

for said Concurrent Audit and should contain detailed statement giving the
various technical particulars of the proposal covering aspects of the Applicant
like name and location, year of establishment, names of its partners, staff, their
qualification/ experience, registration number of the firm / LLP, details of ICAI
membership/ Certificate of Practice details, methodology proposed and all other
such relevant particulars in the format given in Para 10.

b) After the expiry of last date for submission of bids/ application, the envelope
containing the compliance on the “Technical Evaluation” would be opened in
respect of all the applicants to verify the compliance of the applicants with the
prescribed Technical Evaluation information requirements.

c) The Technical Evaluation of Application would be carried out by SIDBI. The
technically qualified applicants would be short listed.

7 Tenure of the contract:

The selected firm/ LLP of Chartered Accountant would initially be assigned the
contract for a period of upto November 30, 2022 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 SIDBI, with NOT MORE
THAN 5% increase in professional fee.

The concurrent audit is likely to start from December 01, 2021. The proposed
assignment would be subject to periodical review at the discretion of SIDBI and is
liable to be terminated at any time, if not found satisfactory, by giving a written
notice of 15 days.

8 Terms & Conditions:

8.1 The Applicant shall ensure that the audit be carried out in a professional
manner and in case of any misconduct & negligence, the Bank may approach
the concerned professional bodies with complaints of professional
misconduct, if any, on the part of any professional engaged by the Bank.

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Accordingly, we may also recommend their name to ICAI/ RBI/ IBA or any
other authority, for suitable action thereon by them.
8.2 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.
8.3 The applicant appointed as Concurrent Auditor should nominate and deploy
as under:
i. One Chartered Accountant (Designated Auditors), who will head the

concurrent audit team as the “Lead Designated Auditor” duly authorised by
the FCA partner of the CA firm / LLP to act on behalf of the firm for
concurrent audit of TRMV at Mumbai.
ii. The Designated Auditors would be required to submit their identity proof
and address proof together with specimen signatures with a request to be
allotted biometric enabled unique login ID for access to the system. The
Designated Auditors would require to log in and log out of the system each
working day. The Designated Auditors would require to surrender the login
ID on completion of the concurrent audit tenure or on any change in the
Designated Auditor(s) by the firm / LLP.
8.4 The audit team composition for Concurrent Audit and attendance
requirements should be specified as under: -

a) The FCA partner of the firm / LLP who shall visit the Vertical/s at least 4
days in a month; and

8.5 The Chartered Accountant (deployed for audit of TRMV, Mumbai), who shall
visit the Vertical preferably on all working days but for a minimum of 20 days
in a month (provided that the number of working days are more than 20 days
in a month).

8.6 The concurrent auditors should not undertake any other activities /
assignment on behalf of the HO Vertical without obtaining the concurrence of
the Audit Vertical at Head Office, in writing.

8.7 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.

8.8 Necessary arrangement would be made for providing space, workstation and
access to systems (viewing rights only) to the concurrent auditor for ensuring
smooth conduct of the audit.

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8.9 The concurrent auditors shall be granted read only access to the systems of the
Vertical.

8.10 The concurrent auditors shall not be allowed to carry any mass storage
device such as pen drive / flash drive / thumb drive or any laptop inside the
HO premises as these devices will not be required for the job. Concurrent
auditor shall be provided with computer system with disabled USB ports by
the concerned HO Vertical.

8.11 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 concurrent auditors shall daily go through all the vouchers
and books of the TRMV for the previous day and identify areas to be
scrutinized in detail.

8.12 Should maintain and keep back up papers in support of observations made.

8.13 Any other terms and conditions of the assignment would be decided by the
Bank on a case to case basis.

A. Declarations and undertaking

 On appointment, the Applicant shall execute undertaking of fidelity and secrecy on
its letterhead in the format prescribed by the Bank.

 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 SIDBI nor will it in future
accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm / LLP acts as the concurrent auditor for SIDBI.

 Any other terms and conditions of the assignment would be decided by the Bank on
a case-to-case basis.

B. Selection Process

 The applications received would be examined by “Applications Opening and
Evaluation Committee” which would be constituted at Head Office Level at Lucknow.

 All applicants scoring 65 marks or more (in Technical Evaluation) will be
considered as the Technically Qualified Applicant.



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 On the recommendation of the Committee, name of the successful top 3 applicants
would be identified for empanelment for concurrent audit of TRMV, Mumbai. Out of
these 3 applicants, the Committee will recommend the applicant scoring the highest
marks to be appointed as concurrent auditor of TRMV.

 In case the applicant with the highest marks declined the assignment for concurrent
Audit the next applicant with second highest marks would be assigned.

 The validity of empanelment of concurrent audit of TRMV Operations is 3 years from
the date of issuance of letter of empanelment.

9 Guidelines & Instructions for applying:

SIDBI will endeavour to make available all relevant information in the RfP. In case of
need of any further information or clarification during the application period, the
applicant must contact only the Contact Officer named above. On no account should the
Applicants communicate directly with any other SIDBI personnel. Failure to comply with
this requirement may result in the disqualification of the applicant from this
competition.
ii. Government Tax

Applicants are responsible for establishing the status of the Services for the
purpose of any government tax including GST, cess etc.

iii. Alterations to Application
Any manuscript or other alteration to the RfP / Application must be
countersigned and dated by the person submitting the RfP / application.

iv. Letters and Declaration to Accompany Applications
The bid / Application must be accompanied by a letter on Firm / LLP letter head
showing the full registered name(s), registered office address of the applicant. It
should be signed by a person of suitable authority to commit the applicants to a
binding contract.

v. Packaging and Delivery of Applications
a) The Applicant is required to submit the details of its proposal in a sealed
envelope. The envelope should clearly superscribed as under:
“Request for Proposal (RfP) for Concurrent audit of Treasury &
Resource Management Vertical (TRMV)”, at Mumbai

SIDBI accepts no responsibility for the premature opening of any incorrectly marked
Applications.
Applications must be received at Audit Vertical, Small Industries Development Bank
of India, 4th Floor, SIDBI Tower, 15, Ashok Marg, Lucknow – 226001 (U. P.) for the
attention of The General Manager by 2.00 PM on the due date.

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Late applications will not be accepted under any circumstance. No special pleadings will
be accepted. Faxed or e-mailed applications will not be accepted.
vi. Conflict of Interest

Applicants must disclose in their application details of any circumstances,
including personal, financial and business activities that will, or might, give rise to
a conflict of interest; this includes any sub-contractor, if they were awarded this
contract. Where applicants identify any potential conflicts, they should state how
they intend to avoid such conflicts. SIDBI reserves the right to reject any
application which, in SIDBI’s opinion, gives rise or could potentially give rise to a
conflict of interest.

vii. Disclosures

The applicant must disclose:

a. If they are OR have been the subject of any proceedings or other
arrangements relating to bankruptcy, insolvency or the financial standing of
the applicant including but not limited to the appointment of any officer such
as a receiver in relation to the applicant’s personal or business matters or an
arrangement with creditors or of any other similar proceedings.

b. If they are OR any of the applicant’s staff have been convicted of, or are the
subject of any proceedings, relating to:
 A criminal offence or other offence, a serious offence involving the
activities of a criminal organisation or found by any regulator or
professional body to have committed professional misconduct.
 Corruption including the offer or receipt of any inducement of any kind in
relation to obtaining any contract, with SIDBI, 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/ bid).
If an applicant or related entity or any individual discloses details of any previous
misconduct or complaint, SIDBI will seek an explanation and background details
from them. At the sole discretion of SIDBI and assessment as to whether the
Applicant will be allowed to submit an application, decision will then be made by
SIDBI.

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viii. Indemnity
The successful applicant shall exercise reasonable skill, care and diligence in the
performance of the assignment and indemnify and keep SIDBI 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.

ix. Assigning to Others
The successful applicant shall not, without the prior written consent of SIDBI,
assign or transfer or cause to be assigned or transferred, whether actually or as
the result of takeover, merger or other change of identity or character of the CAs,
any one 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 SIDBI.

x. Termination
SIDBI may, at its sole discretion and at any time terminate the Contract (after
giving 15 days of notice) and inform the CAs of SIDBI’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. No further correspondence will be
entertained in this regard.

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Appendix-I

Project & Scope for Operation of Treasury & Resource Management
Vertical (TRMV) at Mumbai

SIDBI has an Integrated (Rupee and Forex) Treasury set up at Mumbai which functions
as a separate business unit. The Treasury has Front, Mid and Back Offices which are
manned by experienced officers. The Treasury has required IT infrastructure to support
the day to day operations and MIS requirement. The forex treasury is equipped with
Thomson Reuters Eikon and Dealing terminals, Bloomberg terminal and SWIFT
settlement system.

3.1 Integrated Treasury functions in SIDBI

SIDBI’s Treasury functions include maintaining liquidity and providing funds for day to
day operational requirements and investment of surplus funds in the Treasury into such
instruments as enumerated in its Investment Policy duly approved by the Board. The
guiding principle of investment policy is to provide safety, liquidity and risk and return.
The rupee investment portfolio broadly covers the following:

(i) investment in G-Securities, Treasury Bills, Corporate Bonds and Debentures
and other Fixed Income Securities.

(ii) money market operations like Collateralised Borrowing and Lending
Obligations (CBLO), Fixed Deposit placements with banks / institutions, Bills
Rediscounting, Repo and Reverse repo with interbank participants, various
schemes of Mutual Fund investments, etc.

(iii) equity investments in the Primary and Secondary market.

(iv) other type of investments approved by the Board and within RBI guidelines.

The number of Treasury transactions are as under:

S.No Particulars INR Forex Resource Total
40
1 Average Transactions per day - 10 4 54
considering only working days 40
10500
2 Average Transactions per day - all 10 4 54
days 2600

3 Average Transactions per year* 1000 14250

Transaction includes, purchase, redemption, repayment and settlement.

In addition to the above transactions, LCs are opened by the TFMV. Average
number of LCs opened by TFMV per month is from 10 to 12 numbers.

The total portfolio size of the Treasury Operations is ` 28,000/- crore (as on
August 31,2021).

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3.2 Scope of Currency Operations in SIDBI
SIDBI is licensed as the Authorised Dealer – Category III by Reserve Bank of India. As an
Authorised Dealer Category-III, SIDBI has been undertaking various forex transactions
permitted by RBI. The Bank has raised foreign currency borrowings from multilateral /
bilateral agencies.

The Bank has Nostro Accounts in USD, EUR, JPY and GBP with various correspondents.
SIDBI extends loans to MSME entrepreneurs by way of FCTL, trade finance operations
and places temporary surplus as deposits in foreign currency. The major types of forex
transaction being undertaken by SIDBI are as follows:

(i) Foreign currency borrowings and lending and servicing of borrowings.
(ii) Maintenance of foreign currency accounts with banks and correspondents

abroad.
(iii) Buying / selling of foreign exchange in the domestic market to cover merchant

transactions and other debt servicing obligations.
(iv) Enter into forward contracts on behalf of clients and also as a measure of risk

management.

(v) Undertake foreign currency sell / buy or buy / sell swaps.
(vi) FLC operations on behalf of customers.

(vii) Foreign exchange derivatives transactions to hedge underlying risks including
Swaps, Depo/Loan structures, etc.

3.3 Scope of Treasury Operations:

The selected firm/ LLP of Chartered Accountant would undertake the concurrent audit
of Integrated Treasury (Rupee and Forex) operations of SIDBI on daily basis at SIDBI’s
Mumbai office covering the following areas and based on their findings also regularly
suggest measures to improve the functioning of Treasury and Forex operations.
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 for carrying out the audit should be qualified and experienced in the area of
work.

(i) To verify Rupee money market operations like Collateralised Borrowing and
Lending Obligations (CBLO), Fixed Deposit placements with banks /
institutions, Bills Rediscounting Scheme, Repo and Reverse repo with
interbank participants, various schemes of Mutual Fund investments, etc.

(ii) To verify Equity investments in the Primary and Secondary market operations
including investment, if any, in Portfolio Management Services (PMS).

(iii) To verify Investment in G-Securities, Treasury Bills, Bonds and Debentures
and other fixed income securities.

(iv) To verify Any other Integrated Treasury activity specifically permitted by the
Board / RBI.

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(v) To verify Day to day forex dealing room operations which includes
maintenance of exchange position, application of merchant rates for export /
import transactions.

(vi) To verify Short term swap transactions.
(vii) To verify Booking of forward exchange contract on behalf of customer and

SIDBI.
(viii) To verify Derivative transactions, if any, including pricing of deals.
(ix) To verify Deposit of daily surplus foreign currency amounts with banks.
(x) To verify Calculation of interest in respect of PCFC / FCTL / EBF / LOCFC

transactions.
(xi) To verify Foreign Letter of Credit (FLC) operations.
(xii) To verify MTM Valuation of derivative deals.
(xiii) To verify Accounting of all transactions.
(xiv) To verify Compliance with extant RBI norms and internal control guidelines.
(xv) To verify Returns submitted to RBI.
(xvi) MIS to Senior Management.
(xvii) To verify Approval notes put up to competent authority.
(xviii) To verify Gap position, Daylight and Overnight position norms.
(xix) To verify Adherence of Delegation of Powers (DoP).
(xx) To verify Reconciliation of Nostro Accounts.
(xxi) To verify Reconciliation of Overdraft Accounts against Foreign Currency

Deposits.
(xxii) To verify Reconciliation of all Bank Accounts operated by Treasury.
(xxiii) To verify Settlement of Rupee Treasury and Forex dealing room operations.
(xxiv) To verify Verification of Accruals in Rupee and Forex operations.
(xxv) To verify that computer-generated deal confirmation slips are duly signed by

authorised signatories.
(xxvi) Verification of all operations related to Debt Servicing.
(xxvii) Any other areas of work involving Integrated Treasury operations not

covered above.

3.4 Scope of work for SWIFT Related Operations

3.4.1 General Controls

(i) To verify that no direct creation of payment messages (all messages
irrespective of the message format having financial implications to one/more
banks in such transaction) in the SWIFT environment. All payment messages
shall be made with necessary appropriate entries passed in the
CBS/accounting system.

(ii) To verify that Straight Through Processing between CBS/accounting system
and SWIFT messaging system were completed expeditiously, if there is any
pending.

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(iii) To verify that the users entering/passing/authorizing the transactions in CBS
is integrated and final authorization is done on SWIFT).

(iv) To verify that at any point of time, list of authorised users of SWIFT along with
user privileges should be readily available and the usage is monitored closely.

(v) To verify that review of the authorised users is done periodically. The user
privileges for SWIFT users is decided on “need to know/need to do” basis. NO
generic user IDs is used.

(vi) To verify that the users with administrative privileges including privileges to
create user-ids, update/modify roles/privileges of user-ids in any system,
application of the bank having financial implication (such as CBS, Treasury,
SWIFT, accounting system) does not have any operational role and
responsibility defined. (The operational roles shall include but not be limited
to creation/updations/modification of transactions/payment/confirmation
messages either directly in the system or through file upload process).

(vii) To verify that users with administrative privileges are centralised with access
given to limited set of internal staff.

(viii) To verify that there is strict compartmentalisations and followed at all times
between maker/checker and verifier/approver.

(ix) To verify that no roles cross the users accessing the SWIFT and /or CBS shall
be violating principle of need to have/segregation of duties, four/six eye
principle and no user shall be allocated roles/privileges across systems,
applications that are conflicting in nature or in violation of four eye principle.

(x) To verify whether the transaction logs (of outward payment messages) are
archived from the SWIFT server (whichever SWIFT environment is used by
the bank).

(xi) To verify that SWIFT messages are transmitted only after accounting for the
transactions in their books/CBS/ accounting software.

(xii) To verify that all the logs generated from SWIFT system are reconciled 100%
for all financial and non-financial messages to ensure that all transactions/
messages/files having implications on the exposure of the bank-both FUND
based and NON-FUND based –are matched with corresponding LIMIT set as
well as entry is passed in the CBS/accounting system of the bank.

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(xiii) To verify that all corporate customers have their fund based/non-fund based
limits set and monitored centrally by risk management function of the bank.
On a weekly basis, the risk-management function shall monitor the limit
utilisation through appropriate mechanism.

3.4.2 Controls at pre-transmission stage (i.e., before sending payment messages to
bank with which Nostro account is maintained)

i. To verify that there is a limit set on the payments that have individuals as
beneficiaries, beyond which the correspondent bank shall be asked to seek
positive confirmation from the remitting bank before effecting payment.

ii. To verify that an additional layer of approval is introduced for all payment
messages exceeding a particular threshold, (to be decided internally on the basis
of business volumes and trends). Such approval shall be preferably centralised at
a nodal department.

3.4.3 Controls post transmission of payment messages

i. To verify that Reconciliation of payment messages is undertaken every 1-2 hours
by comprising the outward messages with SWIFT confirmations.

ii. To verify that Nostro reconciliation is undertaken on real time basis and the
escalations of differences, if any, identified should be done immediately.

3.4.4 Technical Aspects
i. To verify that Security Incident and Event Management (SIEM) tool is integrated
with the concerned servers and consoles/PCs connected to critical systems
directly in its VLN to generate automatic alerts.

ii. To verify that SWIFT system and Privileged User Management Systems /Identity
and Access Management systems are integrate. The logs of the same are
monitored through Security Operation Centre (SOC) setup.

iii. To verify that Bank subscribes to online monitoring services of correspondent
banks so as to monitor the transactions as they happen.

iv. To verify that Banks continuously monitor the functioning of printer(s) used in
auto report printing in SWIFT environment for printed confirmation of
transactions put through.

v. To verify that time restrictions is enforced for SWIFT transactions at least for
outward messages. While implementing time restrictions, it shall be ensured to
check for genuineness of all outward messages.

vi. To verify that the network hosting SWIFT and its terminals shall be secured with
restricted access and appropriate, strict rules being set in firewall, router, etc.

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vii. To verify that a system is put in place to generate alerts on breach of any control
limits as well as any other unusual feature in the transactions/messages.

3.4.5 The firm / LLP will have to submit the following reports to the Management
relating to Integrated Treasury (Rupee & Forex) Operations.

(i) Daily reports covering day-to-day Rupee Treasury and foreign currency dealing
room transactions with regard to their correctness, monitoring of risks and
observations, if any, on counterparty limits, instrument wise limits, on open
foreign currency position, adverse movement of MTM of Swap deals, compliance
of Delegation of Powers, etc.

(ii) Monthly reports covering comments on adherence to regulatory and internal
policy guidelines and areas of audit as indicated at para 3.3 including submission
of MIS to Management in respect of Rupee and Foreign currency Treasury
operations, reports to RBI, MTM valuation of derivative deals. Reconciliation of
Nostro accounts and other similar periodic verifications like broker-wise
exposure, counter party exposure etc.

(iii) Quarterly report on closing work pertaining to rupee Treasury operations and
tallying of forex trial balance in respect of various currencies with Rupee trial
balance.

(iv) Half-yearly certification of Bill of Entry statements etc.

(v) Any other related report as may be required by SIDBI from time to time.

Further, the selected firm / LLP would have to audit the books of select Branch
Offices, in addition to Office at Mumbai, pertaining to Integrated Treasury and
foreign currency operations of SIDBI, as and when the need arises.

The above reports with regard to Integrated Treasury (Rupee & Forex) Operations
should be submitted to Country Head, Treasury & Funds Management Vertical at
Mumbai, both in soft and hard forms, within a week of the reporting period for which
the report pertains. Daily reports should be released at the end of the day to Country
Head, Treasury & Funds Management Vertical at Mumbai, both in soft and hard form.
The formats of the reports would have to be devised, wherever required, by the firm
/ LLP in consultation with and approval of SIDBI.

SIDBI 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 should strictly adhere to the format and the time limit.
SIDBI may prescribe different periodicity for different reports of the Treasury
Operations.

3.5 Technical Evaluation Procedure of the bidders for Treasury Operations of
TRMV, Mumbai

The technical capabilities of the bidders with regard to the Treasury Operations
of TRMV, Mumbai would be evaluated based on the following criteria and
weightage:

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3.5.1 Pre-Requisite for Applying
The Applicant should

 Furnish proof of Valid registration / Certificate of Practice from the Institute
of Chartered Accountants of India (ICAI).

 Be a Partnership firm of Chartered Accountants with minimum 3 partners of
which at least 2 partners should be FCA(s). At least one partner should have a
continuous association with the firm of a minimum of 5 years and another
partner should have a continuous association with the firm of a minimum of 3
years. The details of each partner including experience, qualification etc., and
their Registration Number with Institute of Chartered Accountants of India
(ICAI) to be furnished as documentary proof.

 Has minimum five years of previous track record of carrying out concurrent
audits in other Financial Institutions / Public/private Sector Banks (with
documentary proof).

Without compliance of the above pre-requisites, the applicant will not be
eligible for applying.

3.5.2 Technical Evaluation Criteria for Integrated Treasury Operations, TRMV,
(Rating Criteria)
Sl.
No. Criteria Maximum
Marks
i 
(Weightage)

Year of establishment of the Chartered Accountancy firm

Knowledge and experience in carrying out audit of integrated 35

Treasury and Forex operations.

Experience – Above 5 years and upto 10 years – 15 marks

- More Than 10 years – 35 marks

CISA / DISA qualified persons in the firm / LLP (furnish 15

documentary proof).

ii. Be a Partnership firm / LLP of Chartered Accountants with minimum 3

number of partners/ Directors of which 2 number of partners / Directors 10

should be CA(s).

iii Minimum five years of previous track record of carrying out such audits in

other Financial Institutions / Public Sector Banks mainly in the area of 20

Integrated Treasury and Forex Dealing Room Operations (furnish

documentary proof).

iv. Weightage to the firm / LLP empanelled with RBI. 10

 Statutory Central Auditor - 10 Marks

 Statutory Branch Auditor(Category I) – 7 Marks

 Statutory Branch Auditor (Category– II) – 5 Marks

v Regular set-up, either Head Office or full-fledged Branch Offices, at Mumbai. 10

Address furnished.

Maximum technical score 100

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Information to be provided for Technical Evaluation etc.

(i) Chartered Accountant Firm/ LLP Details:

Sl. Requirements Remarks

No.

1 Name of the Chartered Accountant Firm / LLP with year of establishment.

2 Registration Number / Certificate of Practice from the Institute of
Chartered

Accountants of India (furnish documentary proof, Registration should
be valid).
3 Previous Track Record of carrying out concurrent audit in Financial
Institution / Public / Private Sector Banks in the area of financing to
NBFCs/ Refinance to banks. In addition to the above, previous track
record of carrying out concurrent audit in FIs/ Public/ Private banks in
areas:
a) Credit dispensation to MSMEs
b) Financing of NBFCs / Refinancing to Banks.

Details may be given as per Table (A)
4 Details of every partner including experience, qualification etc. and their

Registration number with ICAI (furnish a detailed list of all the
partners)

Sl. Name of Age Education Experience Period of
Associati
No. the (completed Qualificati on with
Partner year as on on
the firm
31/08/2021)

5 Minimum five years of previous track record of carrying out concurrent
audits in other Financial Institutions / Public / private Sector Banks
(furnish documentary proof)

6 Whether the firm / LLP empanelled with RBI (furnish documentary
proof).

7 Availability of suitable infrastructural facilities including office set up
(Branch office / Head office at Mumbai / Navi Mumbai / Thane districts
may be specifically indicated), adequate manpower who are specialized in
the area of audit in other Financial Institutions / Public / private Sector
Banks. Competence and qualification of key professional staff who shall
carry out the assignment in a time bound manner (furnish a detailed list
of all the skilled / semi-skilled employees / staff).

8 Whether the audit firm / LLP or any sister/ associate concern is
conducting the statutory audit of SIDBI or Concurrent Audit in any of
SIDBI branches / HO Verticals.

Note: All the relevant details & documentary evidence, etc. are to be furnished. The above is only a
format. Information may be submitted in additional sheet(s) as may be required.

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(ii) Details of Concurrent Audit of Treasury Operations done in Banks / FIs:

Sl. No. Name of the Bank Branch / Head Office Year of Audit / Period
(From - To)
1
2 [Data required for last
3 10 years]

(iii) Details of Statutory Central Audits (SCA)/ Statutory Bank Auditor (SCB)

of various Banks:

Sr. Name of the Branch/HO Specify SCA/ SCB Year of Audit/

No. Bank/FIs (Category I/II) Period (From -

To) [Data

required for the

last 10 years of

your firm]

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i. The following declaration/ undertaking shall be furnished by the firm:

a) The firm/ LLP shall agree to execute undertaking of fidelity and secrecy on its letter
head in the format prescribed by the Bank, if the contract assigned

b) That the information submitted is complete in all respect and true to the best of our
knowledge.

c) A declaration to 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/ RBI guidelines.

d) The firm / LLP must submit an undertaking that the firm / LLP does not have any
professional relationship with any of the borrowers of SIDBI nor will it in future
accept professional relationship with any of the borrowers of SIDBI during the
period during which the firm / LLP acts as the concurrent auditor for SIDBI.

e) Any other terms and conditions of the assignment would be decided by the Bank on
a case-to-case basis.
Note: Formats for the above are given in later pages.

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Declarations:

All the applicants should submit their bid along with the following
declarations and undertaking

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

We hereby declare that the information submitted above is complete in all
respect and true to the best of our knowledge. We understand that in case
any discrepancy or inconsistency or incompleteness is found in the
information submitted by us, our application is liable to be rejected.

Date: Authorised Signatory

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(ii) Declaration of Eligibility

I/ We _______________________________Chartered Accountants hereby declare
that I/ We comply with the eligibility conditions specified, established under the
Chartered Accountants Act, 1949, and I/ We declare that:

None of the Partners of the firm do not have any disciplinary proceeding under the
Chartered Accountants Act, 1949 pending against them or any disciplinary action under
the Chartered Accountants Act, 1949/ penal action under any other law taken/ pending
against him/ her.

Credit facilities availed by the firm or partners or firms in which 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.

The firm does not have any professional relationship with any of the borrowers of SIDBI
nor will it in future accept professional relationship with any of the borrowers of SIDBI
during the period during which the firm acts as the concurrent auditor for SIDBI.

It is further confirmed that the firm is not the Statutory Auditor of Small Industries
Development Bank of India (SIDBI).

None of the Partner of the firm hold any shares or other securities (including options or
futures) in Small Industries Development Bank of India (SIDBI).

Our Firm has conducted / has not conducted concurrent audit of _____ (BO) / ______ (HO
Vertical)/ _____ (other offices of SIDBI) during the period _________ . (Give status since
01/11/2014).

Our Firm will continue to satisfy the eligibility norm for appointment of Chartered
Accountants as Concurrent Auditors as prescribed by the Bank from time to time.

I/ We understand that any breach of the provisions regarding eligibility
shall be considered as gross negligence and may result in appropriate action under the
Chartered Accountants Act, 1949.

Place: ______________ For ________________________
Date: _______________ Chartered Accountants

Partner

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