NATIONAL TEXTILE CORPORATION LIMITED
( )
(A GOVERNMENT OF INDIA UNDERTAKING)
CIN : U74899DL1968GOI004866
Registered Office,
-4, Core-IV,
, Scope Complex,
7- , 7-Lodhi Road,
-110003 New Delhi-110003
NOTICE INVITING CHARTERED ACCOUNTANT/COST ACCOUNTANT FIRMS FOR APPOINTMENT AS
INTERNAL AUDITORS OF VARIOUS UNITS ACROSS INDIA AND ONE CENTRAL INTERNAL AUDITOR
National Textile Corporation Limited intends to appoint Chartered Accountant/Cost Accountant firm as Internal
Auditors for undertaking the Internal Audit work of our 23 Mills and 2 Regional Offices i.e. WRO and SRO across
India and one Central Internal Auditor for the year 2019-20.
Interested Firms with requisite experience may submit their bids within 21 days i.e. latest by 06.03.2019
, 3:00 P.M. at the following address:
Deputy General Manager (Finance/Internal Audit), National Textile Corporation Limited, 6th, Floor, Core IV,
SCOPE Complex, 7, Lodhi Road, New Delhi 110003, Telephone: 011-24360101 / 2622
Detailed Scope of Work, Pre-Qualification Criteria and other details are available at our website www.ntcltd.org.
Corrigendum if any will be available on our website/ CPPP portal only.
***************
NATIONAL TEXTILE CORPORATION LIMITED
(A GOVERNMENT OF INDIA UNDERTAKING)
Registered Office: Core IV, Scope Complex, 7-Lodhi Road, New Delhi-110003
Tender for Appointment as Internal Auditors for undertaking Internal Audit work of our various units across
India and one Central Internal Auditor
INDEX
S.No Particulars Page No.
1 Introduction 1
2 Overview of Internal Audit 1
3 Scope of Work 1
4 Tender Notice 1
5 Tender submission-Two cover System 2
6 Due Date & Time 2
7 Location of Tenderer (Firm) 2
8 Term & Condition for Other than Central Internal Auditor and Central Internal Auditor 2
9 Earnest Money Deposit 2-3
10 Technical Bid (Envelope A) 3
11 Financial Bid (Envelope B) 3
12 Audit Fee 3
13 Envelope C 3
14 Opening of Tender and Evaluation 4
15 Engagement of Internal Audit Assignment 4
16 Commencement of Internal Audit 4
17 Submission of Internal 4
18 General Terms and Conditions 4
19 Confidentiality Clause 4
20 Jurisdiction in case of Disputes 5
21 Technical Bid for Internal Auditor (other than CIA)- Annexure I 6-7
22 Technical Bid for Internal Auditor (CIA)- Annexure II 8-9
23 Undertaking to be submitted along with TechnicalBid Undertaking- Annexure III 10
24 Financial Bid- Annexure IV 11
25 Submission letter of Tender Document and Declaration-Annexure V 12
26 Declaration for forfeiture of EMD-Annexure VI 13
27 Scope of Internal Audit for Mills- Annexure VII 14-26
28 Scope of Internal Audit for Head Office / Regional Offices- Annexure VIII 27-34
29 Standard Checklist- Annexure IX 35-38
30 List of units for whom bids are called- Annexure X 39
31 List of units to be reviewed by CIA- Annexure XI 40-43
32 Minimum Audit Fee- Annexure XII 44
Introduction
National Textile Corporation Limited, (hereinafter referred as "NTCL") is a schedule "A" Central Public Sector
Enterprise under the Ministry of Textiles, Government of India, having turnover of approx. Rs 1100 crores, engaged
in production of yarn and fabric through its 23 mills in operation, located all over India with 8.03 lakhs spindles and
408 looms producing around 550 lakhs kgs of yarn and 200 lakhs meters of fabric per annum.
Overview of Internal Audit
With a view to have independence of the internal audit and to further strengthen the internal audit system,
the Corporation proposes to appoint reputed, well experience Chartered Accountants/ Cost Accountants firms
having certificate of practice for not less than 5 years to undertake the internal audit work at various units across
India.
Internal audit is an independent appraisal function of the Corporation. It objectively examines, evaluates and
reports on the internal control systems after thorough verification. The internal auditor should identify and
evaluate the organization's internal control system as a basis for reporting upon its adequacy and effectiveness.
The internal auditor should ensure adherence to management policies and directives, safeguard of assets,
completeness and accuracy of records and compliance with statutory requirements etc. He should be able to
exercise judgment, express opinions and present recommendations with impartiality. The internal audit,
notwithstanding his employment by the Corporation, should be free from any conflict of interest. Internal auditor
should ensure coverage of all areas mentioned in the scope of work. Standard Checklist provided as Annexure "I X"
should also be submitted along with the Internal Audit report. (Standard Checklist is supplementary to the main
Internal Audit Report)
Before issuing the final report, the internal auditor should normally discuss the contents with the Unit Head, and
may submit a draft report to them, for confirmation of factual accuracy and their comments. He should
ensure that arrangements are made to follow up audit observations to monitor what action has been taken on them.
Final internal audit report is required to be submitted to the HO under copy to respective unit and regional
office. The Audit report should include audit findings, Comments of the branch, recommendations and
conclusions of the audit.
Scope of Work
Detailed Scope of Work has been provided as:
Scope of Internal Audit for Mills as Annexure `VII'.
Scope of Internal Audit for Head Office / Regional Offices as Annexure `VIII'.
Tender Notice
NTCL invites sealed tenders under two bid systems from Chartered Accountants/Cost Accountants firms for the
Appointment as internal auditors of its various units across India and one Central Internal Auditor. (List of units to
be audited by internal auditors and reviewed by CIA along with their details is annexed as Annexure ``X" and
Annexure "XI" respectively). The tender bids enclosing necessary documents may be addressed to:
Deputy General Manager (F/IA),
National Textile Corporation Limited,
Core IV, Scope Complex,
7-Lodhi Road,
New Delhi 110003
so as to reach on or before 3:00 p.m.,06/03/2019. The tender may also be dropped in Tender Box placed at
Reception of the NTCL. The tenderer should sign and seal in all pages of the tender. NTC shall not be responsible
for any expense incurred by bidders in connection with the preparation and delivery of their bids or any other
expenses incurred during the bidding process.
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Tender Submission-Two Cover System
1. Tenders should be addressed to DGM (F/IA), Head Office, New Delhi by designation only. Tender should be
submitted in following manner:
Envelope A - (Technical Bid with all enclosures and EMD)
Envelope B (Financial Bid)
Envelope C - Containing both Envelope "A" & Envelope "B"
4. Each envelope should be essentially super scribed as "Tender for Appointment as Internal Auditors
for undertaking Internal Audit work of <> located at <> or Tender for
Appointment as Central Internal Auditor", as the case may be and should bear the full address of tenderer
at left side bottom.
2. The tenderer should submit the tender for each unit separately if applying for more than one unit. A tenderer
may submit the tender for maximum of three (03) units. Auditor applying for CIA will be included in counting
maximum no. of units i.e. three (03) units.
3. Tender can also be submitted on or before the due date and time specified in the tender notice in the TENDER
BOX kept at Reception of NTCL.
Alternatively, the tenderer who prefers to submit the tender through post can dispatch the same through
Registered Post or Courier so as to reach the above address on or before the due date and time. Tenders received
after the due date and time, for what so ever reasons will not be considered, and NTCL will not be liable or
responsible for the same.
Due Date & Time
The sealed tenders should reach on or before due date. If the last day happens to be a holiday due to any unforeseen
reason the due date would be next working day. The tender received after due date and time or unsealed or incomplete
or by electronic mail will be rejected.
Location of Tenderer (Firm)
The Tenderer (Firm) should have Registered Office / Branch Office in the same state of our unit/s for which
tenderer is sending the bid.
Term & Condition for:
Other than Central Internal Auditor
Should have their Branch Office/ Registered Office in same state of unit applied.
Firm must be a Partnership Firm/ LLP.
Central Internal Auditor (hereinafter referred to as "CIA")
Should have head office in Delhi-NCR.
Should have minimum 4 Partners in Firm.
Will be assigned the internal audit of NTC head office at New Delhi.
Will not be assigned the internal audit of any other NTC unit.
Will review internal audit reports of other NTC across India mentioned in Annexure `XI' and submit its
report separately.
Earnest Money Deposit
Tenderer shall enclose Crossed Demand Draft / Pay Order / Banker's Cheque drawn on any Scheduled Bank in
favour of "NATIONAL TEXTILE CORPORATION LIMITED", payable at New Delhi as non-interest bearing Earnest
Money Deposit amounting to Rs. 5,000/- (Rupees five thousand only) per unit with Technical Bid. Technical bid
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without EMD shall be rejected. If tenderer is sending bids for more than one unit then each technical bid for a unit must
be accompanied with EMD of Rs. 5000/-.
On opening Technical Bid Envelope, if it is found that Earnest Money Deposit is not enclosed, and then the bid will be
rejected; unless any category of Tenderer specially exempted by the Government from the payment of Earnest Money
Deposit reasons and proof of the same has to be enclosed.
Refund of EMDs to Unsuccessful Tenderer :
The EMD of Rs 5,000/- of the successful Bidder shall be released after successful completion of internal audit work
allotted. The EMD of Rs 5,000/- of the unsuccessful Bidder shall be released within 30 days of the opening of
financial Bid.
Tenderer are required to furnish the details of Bank i.e. Name of the Bank, Bank Account Number & Name of Branch
with IFSC Code for refund of EMD.
The Earnest Money Deposit/Security Deposit will be forfeited if:
I. Tenderer withdraws his bid or backs out after acceptance.
II. Tenderer does not accept assignment after he is selected as L1 and appointment letter is already issued.
III. Tenderer violates any of the conditions prescribed in the Tender Document.
IV. Tenderer changes any of the terms, during validity period.
If the tenderer neglects or refuses to accept their rates quoted after submission of their tender or to
comply with any of the conditions of the tender, the earnest money deposit already paid will be forfeited.
Technical Bid (Envelope A)
The Technical Bid as prescribed in Annexure I (other than CIA) or Annexure II (CIA) should be filled up along with
all the enclosures specified below in a sealed separate envelope (Envelope A) along with all the enclosures
specified as under:
i. Submission letter of tender document.
ii. Demand Draft for EMD
iii. Technical Bid for Central Internal Auditor (CIA)/ Internal Auditor (other than CIA) along with self attested
documents mentioned in format.
iv. A copy of cancelled cheque for the purpose of refund of EMD.
v. Bid Undertaking.
vi. Declaration at Annexure `VI'
Financial Bid (Envelope B)
The financial bid as prescribed in Annexure `IV' should also be filled up and sealed in a separate envelope
(Envelope B). Financial Bid of only technically qualified tenderer will be opened.
Audit Fee
Internal Audit Fees should be quoted inclusive of TA/DA/Boarding/Lodging etc. and exclusive of applicable Taxes, if
any. The audit fee quote should be indicated clearly both in Figures and in Words. If there is any variation between
the audit fee quoted in Figures and Words then audit fee quoted in figures will be considered for evaluation.
Audit fee annexed at Annexure `XII' may be considered as minimum audit fee for Mills/HO/ROs.
Envelope C
Envelope A & B should be kept in Envelope C and Envelope C should be essentially super scribed as "Tender
for Appointment as Internal Auditors for undertaking Internal Audit work of <> located at
<> or Tender for Appointment as Central Internal Auditor", as the case may be and should
bear the name, full address and contact no. of tenderer firm at left side bottom of Envelope.
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Opening of Tender and Evaluation thereon
Tenders will be opened at 03:00 p.m. on 07.03.2019. Evaluation of technical Bid-I shall be as per eligibility criteria
and financial Bid of the tenderer shall be opened only if it qualifies the technical Bid-I.
Engagement of Internal Audit Assignment
Appointment as Central Internal Auditor/ Internal Auditor of units of NTCL will be after evaluation as per technical
eligibility criteria and L1 firm among the bidder for the particular unit will be allotted Internal Audit Assignment of that unit.
Incase the L-1 fee is quoted by more than one firm, the oldest firm (based on the date of registration / incorporation
as partnership firm or LLP) shall be treated as L-1.
The engagement of Internal Auditor will be for the Financial Year 2019-20 beginning from 01.04.2019 to
31.03.2020. The Corporation reserves its right to cancel the engagement prior to expiry of the tenure, in
case services are not found satisfactory.
Commencement of Internal Audit
Selected firm will be issued Appointment letters in hard as well as soft copies. Firm is required to send their consent
via e-mail to internal_audit_ho@ntcltd.org within 07 days of receipt of Appointment Letter. If consent is not
received during specified time period then it would be assumed as accepted. The internal audit should commence
immediately after closing of the quarter / half year.
Submission of Internal Audit Reports
Internal Audit reports should be submitted on quarterly basis as under:
Hard copy in triplicate one copy to In-charge of the unit; one copy to Regional Office; one copy to DGM
(F/IA), Head Office at New Delhi;
Soft copy by e-mail to internal_audit_ho@ntcltd.org
General Terms and Conditions
i. Bids are valid for 90 days from the opening of the Bid.
ii. In case audit performance is not found satisfactory, the firm can be removed after giving one month notice
during the engagement period of one year. In this case the next firm in the line of L-1 shall be
called upon to accept the engagement provided he agrees for L-1 fees.
iii. The assignment of internal audit of units have been clubbed wherever necessary considering volume of
work and location.
iv. Tender of Proprietor firm will be rejected.
v. Firm having any partner who has retired from the services of NTCL in the last two years prior to FY 2019-
20 shall not be considered for this engagement as it affect the independency of internal audit.
vi. Firm who was assigned the job of internal / statutory / cost /GST audit in any of the units for 3 consecutive
years prior to FY 2019-20 shall not be considered for this engagement of appointment in any unit across
India.
vii. Failure to furnish all information required as per the Bidding Document may result in the rejection of the
Bid.
viii. NTC reserves the right to accept or reject any Bid and to annul the Bidding process and reject all Bids at
any time prior to award of contract without assigning any reason whatsoever, without thereby
incurring any liability to the affected Bidder or Bidders or without any obligation to inform the affected
Bidder or Bidders of the grounds or the reasons for the said action.
Confidentiality clause
The successful bidder must not disclose the confidential information obtained from the corporation to anyone
unless required to do so by law and shall maintain confidentiality. The successful bidder to whom the work is
allotted shall carry out the job at their own and shall not sub-let this work to any other Agency/Organization.
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Jurisdiction in case of Disputes
In case of any dispute, jurisdiction of courts at New Delhi shall be final and binding upon the parties.
Further clarification w.r.t tender may be sought from the office of Deputy General Manager (Internal Audit),
National Textile Corporation Limited, 6th, Floor, Core IV, SCOPE Complex, 7, Lodhi Road, New Delhi
110003, Telephone: 011-24360101 / 2622.
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Annexure `I'
<>
Technical Bid for Internal Auditor (other than CIA)
Contact details of the Firm Name:_______________________________________
Office Address:________________________________
________________________________
City:__________________ Pin Code: ______________
Office Telephone No:___________________________
Mobile No:___________________________________
Email:_______________________________________
Website:_____________________________________
Income tax Permanent Account Number
(Self attested Copy of the same shall be enclosed)
GST No.
(Self attested copy of the same shall be enclosed)
Details of the Firm:
1. Whether LLP or Partnership firm;
2. Date of establishment / incorporation of firm;
(as partnership firm/ LLP)
3. No. of partner(s):
4. No. of qualified audit staff:
5. No. of articled clerk:
Whether firm is having certificate of practice for not less Yes / No
than 5 years as partnership firm or LLP.
If Yes, then enclose Self attested copy of the
registration certificate.
Details of Earnest Money Deposit Amount Rs. 5,000/- (Rupees five thousand only) drawn on
____________________________________ vide DD /
PO / BC No. _____________ dated _____________
in favour of National Textile Corporation Limited.
Whether engaged as internal / statutory / cost /GST Yes / No
auditor of any of the units of NTC in the last three years
prior to FY 2019-20.
If Yes, then give details thereof (Name of the unit,
nature of the assignment and FY under audit).
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Whether any partner of the firm has retired from the Yes / No
services of NTC in the last two years prior to FY 2019-
20.
If Yes, then give details thereof (Name of such partner
and date of retirement from NTC).
Whether having experience in internal audit of Public Yes / No
Sector companies, especially manufacturing units during
the last 5 years. (Preference to be given to a firm having
experience in textiles sector).
If Yes, then give number of such assignment along with
short brief thereof and enclose stamped copy of
completion certificate of assignment issued by PSU or
Central / State Govt. Department.
The firm / any partner should not have been convicted Undertaking attached : Yes / No
in any disciplinary proceedings / criminal case by
regulatory authority / court in connection with
professional work. Bidder should not be in black
list of any PSU or Central / State Govt.
Department. Bidder to submit an undertaking in this
respect as per attached format.
The firm should have office / branch office in the same Complete Address and other details attached : Yes / No
state of our unit.
(Complete address of the branch office along with the
details of contact person and his phone number should
be submitted on letter head of the Firm).
Details of Bank for refund of EMD:
Name of Account holder;
Account number;
Name of Bank;
Name of Branch;
IFSC code;
(enclose a copy of cancelled cheque)
Signature and seal of tenderer:
Name:
Capacity /authority to sign:
Full address:
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Annexure `II'
<>
Technical Bid for Central Internal Auditor (CIA)
Contact details of the Firm Name:_______________________________________
Office Address:________________________________
________________________________
City:__________________ Pin Code: ______________
Office Telephone No:___________________________
Mobile No:___________________________________
Email:_______________________________________
Website:_____________________________________
Income tax Permanent Account Number
(Self attested Copy of the same shall be enclosed)
GST No.
(Self attested copy of the same shall be enclosed)
Details of the Firm:
1. Whether Partnership firm or LLP;
2. Date of establishment / incorporation of firm;
(as partnership firm/LLP)
3. No. of partner(s):
4. No. of qualified audit staff:
5. No. of articled clerk:
Whether firm is having certificate of practice for not less Yes / No
than 5 years as partnership firm or LLP.
If Yes, then enclose self attested copy of the registration
certificate.
Details of Earnest Money Deposit Amount Rs. 5,000/- (Rupees five thousand only) drawn on
____________________________________ vide DD /
PO / BC No. _____________ dated _____________
in favour of National Textile Corporation Limited.
Whether engaged as internal / statutory / cost /GST Yes / No
auditor of any of the units of NTC in the last three years
prior to FY 2019-20.
If Yes, then give details thereof (Name of the unit,
nature of the assignment and FY under audit).
8|Page
Whether any partner of the firm has retired from the Yes / No
services of NTC in the last two years prior to FY 2019-
20.
If Yes, then give details thereof (Name of such partner
and date of retirement from NTC).
Whether firm is having 4 or more partners. Yes/ No
If Yes, then give details of partners and their
membership number.
Whether having experience in internal audit of Public Yes / No
Sector companies, especially manufacturing units during
the last 5 years. (Preference to be given to a firm having
experience in textiles sector).
If Yes, then give number of such assignment along with
short brief thereof and enclose stamped copy of
completion certificate of assignment issued by PSU or
Central / State Govt. Department.
The firm / any partner should not have been convicted Undertaking attached : Yes / No
in any disciplinary proceedings / criminal case by
regulatory authority / court in connection with
professional work. Bidder should not be in black
list of any PSU or Central / State Govt.
Department. Bidder to submit an undertaking in this
respect as per attached format.
The firm should have head office in Delhi-NCR. Complete Address and other details attached : Yes / No
(Complete address of the office along with the details of
contact person and his phone number should be
submitted on letter head of the Firm).
Details of Bank for refund of EMD:
Name of Account holder;
Account number;
Name of Bank;
Name of Branch;
IFSC code;
(enclose a copy of cancelled cheque)
Signature and seal of tenderer:
Name:
Capacity /authority to sign:
Full address;
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Annexure `III'
<>
Format of Undertaking to be submitted along with TechnicalBid Undertaking
We hereby confirm that all the documents submitted in this tender are authentic, genuine, copies of their
originals and have been issued by the issuing authority mentioned above and no part of the document(s) /
information is false, forged or fabricated.
We hereby confirm that our Bid complies with the total technical-commercial requirements/ terms and
conditions of the Bidding Document and subsequent addendum/corrigendum (if any), issued by NTC, without
any deviation/ exception/ comments/ assumptions.
We hereby confirm that we are not under any 'liquidation', any 'court receivership' or similar proceedings
and 'bankruptcy'. We hereby confirm that firm / any partner has not been convicted in any disciplinary proceedings /
criminal case by regulatory authority / court in connection with professional work. We further confirm that, we have
not been in negative list / blacklisted by any Public Sector Undertaking / Government Organization / NTC.
We also confirm that the contents of this Tender have not been modified or altered by us. We agree that if any
noticed in future, our Bid may be rejected / terminated.
We hereby confirm that we have gone through and understood the Bidding Document and that our Bid has been
prepared accordingly in compliance with the requirement stipulated in the said documents.
Date: Signature with seal of the firm
Place: Name & Full address of the firm:
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Annexure `IV'
<>
Financial Bid
Tender for Appointment as Internal Auditors for undertaking Internal Audit work of <>
located at <> or Tender for Appointment as Central Internal Auditor
1. I/we hereby submit our Financial Bid for professional fees for undertaking appointment as Internal Auditor of
<> located at <> or appointment as Central Internal Auditor.
Particulars Professional Fees (In Rs)
Internal Audit fees for undertaking appointment as Internal Auditor of
<> located at <> or appointment as Central
Internal Auditor.
(In words: Rupees __________________________________________________________________________)
2. The Internal audit fees quoted above is inclusive of TA/DA/Boarding/Lodging etc.
3. The Internal audit fees quoted above is exclusive of all applicable taxes.
4. Audit fees will be paid on submission of bill along with the Internal Audit Report.
We hereby agree with all the terms and conditions of the tender and we hereby undertake to abide by same.
Date: Signature with seal of the firm
Place: Name & Full address:
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Annexure `V'
<>
Submission letter of Tender Document and Declaration
Date:
To,
Deputy General Manager (Internal Audit),
National Textile Corporation Limited,
6th, Floor, Core IV, SCOPE Complex,
7, Lodhi Road,
New Delhi 110003
Sub: Tender for Appointment as Internal Auditors for undertaking Internal Audit work of <>
located at <> or Tender for Appointment as Central Internal Auditor
Dear Madam,
1. We have read and understood all the terms & conditions of the tender and other instructions and hereby
undertake to abide by them.
2. We are enclosing herewith, Demand Draft / Pay Order / Bankers' Cheque No. dated
____________ in your favour, towards earnest money deposit of Rs.5,000/-.
3. We have filled, numbered and signed each page of the tender documents and the same are enclosed here
with.
Signature and seal of Tenderer:
Name:
Capacity /authority to sign:
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Annexure `VI'
<>
Declaration for forfeiture of EMD
Date:
To,
Deputy General Manager (Internal Audit),
National Textile Corporation Limited,
6th, Floor, Core IV, SCOPE Complex,
7, Lodhi Road,
New Delhi 110003
Dear Madam,
I/We <> hereby declare that I/We will be liable for forfeiture of earnest money in following
conditions:
I. Tenderer withdraws his bid or backs out after acceptance.
II. Tenderer does not accept assignment after he is selected as L1 and appointment letter is already issued.
III. Tenderer violates any of the conditions prescribed in the Tender Document.
IV. Tenderer changes any of the terms, during validity period.
V. Tenderer neglects or refuses to accept their rates quoted after submission of their tender
Signature and seal of Tenderer:
Name:
Capacity /authority to sign:
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Annexure `VII'
Scope of Internal Audit for Mill
Internal Auditors are required to cover all the areas specified below in the Detailed Scope of
Internal Audit for financial year 2019-20.
Internal Auditors should inform any serious irregularity in the unit to NTC Head Office, New
Delhi as "SPECIAL REPORT TO H.O." separately.
The role of internal Auditor is not confined only to pointing discrepancies but also suggesting
remedial measures against these discrepancies and risk involved therein.
Draft Internal Audit Report should be discussed with the unit head and their replies towards
each auditor's observation should also be incorporated in the report.
Quarterly/Half yearly Trial balance should be enclosed along with the Internal Audit
Report, duly signed by the Internal Auditor and the unit head. Trial Balance should
provide Opening Balance, Transaction during the period (Debit and Credit) and Closing
Balance.
Internal Audit Reports should be submitted timely to the unit head and HO and timelines
mentioned in the appointment letter should be strictly adhered.
DETAILED SCOPE OF INTERNAL AUDIT
S. Particulars Particulars
No.
I Trial Balance 1. Reconcile opening balances of Balance Sheet items with last audited
Trial Balance / Balance Sheet.
2. Ensure that no back dated voucher is passed or modification in
vouchers passed is done in the previous audit period post completion of
audit.
II Cash / Bank 3. Cash / Bank Position
a. To report Cash Balance.
b. To report Bank balances in all the bank accounts (including inoperative
bank accounts).
4. Inoperative Bank Accounts
c. To identify and report inoperative bank accounts i.e. bank account in
which there has been no transaction in the last one year and reasons
for non-closure of such bank accounts.
5. Cash / Bank Book
To check and report whether :
d. Cash / Bank book is serially numbered, written, closed and signed by
the Accounts in charge daily with due accounting of all receipts and
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payments;
e. Cash deposited to / withdrawn from bank is entered in Cash / Bank
book on the same day;
f. Cash / Bank Balance as per books of accounts tallies with the balance
as per Cash / Bank Book.
g. There was negative cash balance on any day during the period under
audit.
6. Bank Reconciliation Statement
h. To check and report whether Bank reconciliation statement in respect of
all the bank accounts is prepared and signed by the Accounts in charge
on monthly basis.
i. Verification of Bank Reconciliation Statement with Bank Statement /
Bank Certificate and to check and report whether :
Entries appearing in BRS are settled subsequently. If not, then
inquire into the nature and details of such outstanding entry.
Cheques issued but not cleared appearing in BRS for more than 3
months has been transferred to stale cheques and booked
accordingly.
7. FDRs / TDRs
j. To check and report whether any amount has been kept in FDRs /
TDRs with bank. If yes, then report the details thereof along with the
reasons thereof.
8. Physical Verification
k. Physical / surprise verification of cash on the first day of visit during
audit and check whether the physical cash balance tallies with the
balance shown by the cash book and report the discrepancy found, if
any.
l. Physical verification of unused blank cheque book / cheque leaves and
report the discrepancy found, if any
m. Physical verification of cancelled cheques during the audit period on
random basis and report the discrepancy found, if any.
n. Physical verification of FDRs / TDRs and report the discrepancy found,
if any.
9. Cash / Bank Payment / Receipt
To check and report whether :
o. Payments are made after proper sanction of Authorized person.
p. Unpaid amount, if any, on account of salary, wages, bonus etc. is
deposited in cash office without any delay;
q. Payments are made only against original supporting bills/invoices and
said bills / invoices are marked as "PAID" or "CANCELLED" along with
the date of payment after payment is made.
r. All cash and bank payments are entered in Docket Book.
s. There was any irregularity while making payment in cash beyond the
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limit specified under Income Tax Act, 1961.
t. Cheques and drafts received are deposited in the bank account on the
same day or next working day.
u. Receipts through NEFT / RTGS are entered into the books of account
on the same day or next working day.
10. Cash / Bank Vouchers
To check and report whether :
v. All the relevant columns of the Cash / Bank Vouchers have been
properly filled in and vouchers are properly authorized.
w. Signature of the payee is taken by the cashier on the cash payment
voucher at the time of making cash payment and a revenue Stamp of
Re 1 is affixed thereon where cash payment exceeds Rs. 5,000.
11. Insurance Cover
To check and report whether :
x. Cash in safe/cash in transit is within the insurance cover taken.
y. Fidelity insurance cover is taken in the names of persons who have the
custody of cash.
12. Safe Custody
To check and report whether :
x. Cash is kept in safe custody at the close of business hours.
y. Cheque books and bank counterfoils are kept in safe custody.
z. Post-dated cheques received, if any are kept in safe custody until
deposited.
13. To report whether the cash handling person is permanent employee of
NTC.
III Fixed Assets 14. To check and report whether proper authorization has been taken from
the Appropriate Authority for purchase / sale / transfer of fixed assets
during the audit period.
15. To check and report whether transactions involving purchase / sale /
transfer of fixed assets have been properly recorded in the books of
accounts.
16. Fixed Asset Register
To check and report whether :
a. Fixed Assets Register (hereinafter referred to as "FAR") is m aintained
and updated on regular basis (Manual / Computerized).
b. FAR give below details of the fixed assets :
Description;
Date of purchase;
Quantity;
Location;
Identification Number / Tag Number;
16 | P a g e
Original Cost / Purchase Price;
Rate of Depreciation / Useful life;
Accumulated depreciation;
Deletion / Inter-unit Transfer;
Written down value
c. Identification number given on the fixed asset tallies with the number
given in the FAR on random basis.
17. Physical Verification
To check and report whether :
d. Physical verification of fixed asset is carried out by the management at
least once in a year.
e. Physical verification sheets in respect of fixed assets are properly
prepared and duly signed by the persons responsible for carrying out
the physical verification. The name, designation of employees and the
date of carrying out the physical verification should also be clearly
mentioned in the physical verification sheets.
18. Purchase of new Plant & Machinery
To check and report whether :
f. Machines are ordered after due approval and authorization at various
stages
g. Machines are received as per the specification and according to the
agreed contract terms and conditions.
h. Machines are erected / commissioned on time as per schedule and as
per the terms of contract.
i. Payments are made as per the agreed terms.
j. Expenses incurred for procuring machines have been capitalized along
with the capitalization of machines.
k. Machines installed and commissioned are lying idle. If so, reasons
thereof along with the period remaining idle.
l. Performance of machines received with regard to working, speed etc.
as per specification of machines or requirement of the mills as per
running count.
m. Any difficulty / problem are faced after erection / commissioning of
machines.
n. Suppliers of machines are attending the complaints on time and service
thereafter is satisfactory.
o. Ensure that the log book in respect of all the plant machinery and
equipments are kept properly and up to date. Verify the machine log
books and comment on the discrepancies observed.
IV Sundry 19. Age-wise analysis of debtors giving details of debtors outstanding for:
Debtors Less than 3 months
3-6 months
6-12 months
More than 12 months
20. Verify that collections from debtors are on time and there is no delay in
collection and to ensure that interest is charged from parties on
delayed payments as per the sales policy. Please verify the details in
17 | P a g e
the Format "B" prescribed in Additional Standard Checklist.
21. In case of sales made against Post dated cheques, if cheque has
been deposited after due date, special mention in the report may be
given along with the reasons.
22. Verify the measures taken to recover / reduce sundry debtors and
report whether the follow up action on outstanding debtors is sufficient
or not.
23. Comment on the Debtors' account showing closing credit balances
along with the details and reasons for credit balances.
24. Check the Debtors' account where legal case has been filed and
ascertain the progress in the legal case.
V Sundry 25. Age-wise analysis of creditors giving details of creditors outstanding
Creditors for:
Less than 3 months
3-6 months
6-12 months
More than 12 months
26. Comment on the Creditors account that are outstanding to be paid
since long (unclaimed Creditors) and that can be considered for a
write back in the books of account.
27. Comment on the Creditors' account showing closing debit balances
along with the details and reasons for debit balances.
28. Check the Creditors' account where legal case has been filed and
ascertain the progress in the legal case.
VI Purchases To check and report whether:
29. Purchases are made as per the approved purchase manual /policy /
prescribed procedures / sanction of authorized person.
30. Interest / carrying charges paid, if any, are as per the terms of
Purchase order (PO) / MoU / Contract. Please verify the details in the
Format "B" prescribed in Additional Standard Checklist.
31. Purchase Register is maintained and updated regularly (manual /
computerized) indicating below details:
Item Code
Name of the item
Purchase Order Number
Rate per Item
Quantity purchased
Total Purchase Amount
Discount / Rebate, if any.
32. Rate Variations over a period of time in respect of item of purchases
should be noted. Reasons for purchases made at varying rates should
be obtained. Rate Variations without a proper justification should be
reported.
33. Carry out a scrutiny of Indents / Purchase requisitions to ensure that
the purchase orders are placed as per the requirements given in the
Indents.
34. Ensure that various terms and conditions entered with the suppliers
regarding quantity, quality, rate, discounts / rebates, commission,
transportation and GST/TDS are properly adhered.
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35. Obtain a list of Indents pending for conversion into PO and comment
upon the old pending indents.
36. Obtain a list of POs pending for delivery and comment upon the old
pending PO where the due date of delivery of material has expired.
37. Inward Material
a. Check that entry for the incoming material is made at the entry
gate register and GRN is issued.
b. Ensure that the weighing / counting of the incoming material are
made properly and correctly at the receiving section.
VII Sales To check and report whether:
38. Sales are made as per the approved sales policy / prescribed
procedures.
39. Sale of scrap items is made only through tender / open auction.
40. Interest / carrying charges are collected on delayed payments, if any,
as per the terms of MoU / Contract.
41. Ensure that the discounts / rebates offered to the customers and
commission to agents / dealers are as per the approved sales policy /
prescribed procedures.
42. Ensure that the weighing / counting of the outgoing material are made
properly and correctly at the dispatch section.
VIII Waste Sale 43. Verification of sale procedure of waste variety wise and valuation
(Like Cotton thereto.
Waste) 44. To check and report whether sale of waste is made only to the
registered parties.
45. Ensure that the weighing / counting of the outgoing material are made
properly and correctly at the dispatch section.
IX Inventory To check and report whether :
46. Actual Inventory levels are as per the Inventory norms w.r.t:
Yarn
Cloth
Stores & Spares
Raw Material
W.I.P
47. Age-wise analysis of finished stock giving details for finished stock
lying :
Less than 06 months
06-12 months
More than 12 months
48. Age wise summary of obsolete/damaged, non-moving and slow
moving stock has been prepared and reported to Head Office for
further instructions. If so, then report the details along with the amount
thereof.
49. Physical verification of inventory is carried out by the management at
least once in a year.
50. Samples sent outside the mills are received back within a reasonable
time.
51. Whether the systems of inventory control like Maximum level /
Minimum level / EOQ / Perpetual inventory system / Bin Cards etc are
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prepared.
52. Items of raw material and stores & spares are procured and not issued
within 6 months. If so, then report the details along with the reasons
thereof.
53. Unused Stores & spares lying within a particular department are
properly recorded / accounted.
54. Raw material is valued on weighted average system, finished stock is
valued at lower of cost or net realizable and WIP is valued properly at
different stages.
55. Monthly Quantitative Reconciliation Statement
Particulars Opening Purchased Consumed Closing
Stock Stock
(i) Raw Material
(ii) RM to FG (Yarn)
(iii) Yarn to Cloth
Reconciliation
X Accounting / To check and report whether :
Vouching 56. Monthly reconciliation of all accounting records such as bank
accounts, sub-ledger with main ledger accounts, stock ledger etc is
done.
57. Proper distinction between revenue and capital expenditure is made
while accounting.
58. All the relevant columns of the Vouchers have been properly filled in
and vouchers are properly authorized and supported by bills / invoices
etc.
59. Voucher is prepared only in respect of original Bills / Invoices.
60. Bills / invoices are passed strictly as per the terms of purchase order /
MoU / Contract.
61. To check the correctness of the accounting head expenses or
income and report the discrepancy, if any.
62. Ensure that input credit under GST is properly recorded in the books
of accounts.
XI Repairs & To check and report whether :
Maintenance 63. Schedule of preventive maintenance of plant & machinery and
of Plant & equipments has been made at regular intervals.
Machinery 64. Preventive maintenance schedule includes all the plant machinery and
equipments.
65. There is any deviation from the planned preventive maintenance
schedule. Enquire in to the reason for such a deviation and comment
upon it.
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XII Insurance 66. Obtain a list / statement of all the Insurance policies and ensure that
all the assets of the company are fully and adequately insured.
67. Obtain a list of all the insurance claims pending for settlement and
comment upon the old pending cases.
68. Ensure that the Insurance policies are renewed in time i.e. before the
expiry of the period of validity.
69. Prepaid insurance expenses are booked adequately.
XIII Advance to 70. Obtain list of Advance to employees to ascertain the amount
employees outstanding in the name of each employee and the date since when
the advance is outstanding to be settled. Enquire and report cases
where advances have not been settled for a long period along with the
reasons thereof.
71. Ensure that no further advance is given to an employee unless the
previous outstanding advance is cleared by him.
XIV Work To check and report whether:
Contracts 72. There was any lacuna in procedure adopted for award of civil work
contract, which was not beneficial to NTC
73. The rates for carrying out the jobs work was finalized after a proper
comparison of the rates and further negotiation.
XV Statutory 74. To check and report whether the provisions of Income Tax / GST / PF
Compliances / ESI / Professional Tax have been complied with.
75. To check and report whether tax payments are made and returns are
filed within the due date.
76. To report month wise payment of statutory dues in the format given as
Annexure `A'.
XVI MVRS 77. To check and report whether MVRS funds, if any, are kept in a
separate bank account and there is no diversion of funds for any other
purpose.
78. Whether Utilization Certificate of funds released for MVRS or any
other purpose is given from time to time.
79. To check that there is no deviation w.r.t to the guidelines contained in
NTC Modified Voluntary Scheme.
80. To check date of birth of the employee as per service record and to
ensure that there is no change in date of birth.
81. To check the date of joining and to ensure that ex-gratia payment is
made to workers as per guidelines contained in MVRS.
XVII Budgets 82. To report month wise performance of the unit in technical and financial
parameters given as Annexure `B' & `C'.
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XVIII Personnel 83. Review the personnel service files of employees kept by the
Personnel Department to check whether
All the copies of certificates / testimonials have been taken from the
employees at the time of joining.
Copies of appointment advice / appointment letters / confirmation
letters etc are kept in the service files
Nomination in case of Gratuity / Pension / PF / superannuation etc
has been collected from the employees.
All other documents like increment letters / promotion letters etc are
properly filed in the service files.
84. Ensure that the Personnel Department is taking due care in case of
contract labour employed by it to ensure that legal and statutory
obligation like PF / ESI are taken care of. The Personnel Department
should maintain proper attendance record in respect of the contract
labour and should obtain copies of monthly PF / ESI challans from the
contractor.
85. Check that the various licenses like the Factory license etc. are
renewed in time.
86. Ensure that the various provisions of industrial and labour laws
like The Apprentices Act / Factories Act / Payment of wages Act /
Minimum wages Act etc. are duly complied with.
87. Ensure that proper attendance / leave records are maintained by the
Personnel Department is respect of all the workmen / staff / officers/
managers / higher management.
88. Verify system of settlement of terminal dues.
XIX Time Office To check and report whether :
89. Actual strength of employees / labour is as per the sanctioned
strength. If actual strength is more than the sanctioned strength, then
check approval for extra manpower deployed.
90. System of marking attendance has adequate checks and controls.
Point out the lacunae / weakness in the internal control system.
XX Additional 91. To assess adequacy of internal checks & internal controls in the
points organization.
92. To comment on the adequacy of laid down procedures.
93. To evaluate Joint Venture's transactions and monitors its result to
ensure commitments of the strategic partners in the Joint Ventures.
94. Scrutinizing tenders / contracts of high value (Rs. 10 Lakhs & above).
95. Verification and review of old outstanding loans and advances and
details provided to Head Office for further consideration.
96. Whether the action plans to comply with the Cost Auditors
observations have been made and action taken report in respect of
action plan is being submitted.
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Annexure `A'
NAME OF UNIT ___________________________________________
STATEMENT SHOWING PAYMENT OF DUES
FOR THE MONTH OF _________________
S. Particulars Amount Due Amount Paid Due Date Date of Remarks, if
No. of Payment Payment any
1 Provident Fund
a. Employees'
Contribution
b. Employers'
Contribution
2 ESI
c. Employees'
Contribution
d. Employers'
Contribution
3 Professional Tax
4 TDS
5 GST
6 Custom Duty
7 Property Tax
8 Land Revenue /
Cess
9 Electricity Bill
10 Water Bill
11 Others,
Please Specify
Total
23 | P a g e
Annexure `B'
NAME OF UNIT ___________________________________________
STATEMENT SHOWING PERFORMANCE IN TECHNICAL PARAMETERS
FOR THE MONTH OF _________________
S.No. Particulars Unit Budgeted Actual Deviation Reasons Remarks,
- for if any
Positive / deviation
Negative
TECHNICAL
1. Working days Nos.
2. Commissioned Nos.
Capacity
a) Spindles
b) Looms
c) Processing
3. Utilization %
a) Spinning
b) Weaving
c) Processing
4. Grams/Spdl (40conv) Grams
a) Cotton
b) Blends
c) Overall
5. Actual (Grams/Spdl.) Grams
a) Cotton
b) Blends
c) Overall
6. HOK (overall)
7. Yarn Realisation %
a) Carded
b) Combed
c) Blends
d) Overall
8. Avg. Employment-per Nos.
day
9. Hands/000Spindles Nos.
10. Hands/00 Looms Nos.
11. Power/000 Spindles Units
12. Power/00 Looms Units
13. Power Rate/Unit Rs. /
Unit
24 | P a g e
14. Production
a) Ring Stage Lakhs
Cotton Yarn Kgs.
Blend Yarn
Overall Yarn
b) Packed Yarn Lakhs
Cotton Yarn Kgs.
Blend Yarn
Overall Yarn
15. Raw material rate Rs /Kg
a) Cotton
b) Blends
c) Overall
16. Hard Waste %
17. Average Count Nos.
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Annexure `C'
NAME OF UNIT __________________________________________
STATEMENT SHOWING PERFORMANCE IN FINANCIAL PARAMETERS
FOR THE MONTH OF _________________
S.No. Particulars Unit Budgeted Actual Remarks,
if any
Sales
1
a) Yarn Rs. in Lakhs
b) Cloth
Production Value including
2
Misc. Income Rs. in Lakhs
Raw material
3 Rs. in Lakhs
Power & Fuel
4 Rs. in Lakhs
Other Manufacturing Expenses
5 Rs. in Lakhs
Gross Contribution
6 Rs. in Lakhs
Administrative, Selling &
7
Distribution Expenses Rs. in Lakhs
Net Contribution
8 Rs. in Lakhs
Wages & Salaries
9 Rs. in Lakhs
Net Contribution/wages &
10
salaries %
15 Interest paid Rs. in Lakhs
16 Cash Profit / (Loss) Rs. in Lakhs
17 Depreciation Rs. in Lakhs
18 Gratuity Provisions etc. Rs. in Lakhs
19 Operating Profit / (Loss) Rs. in Lakhs
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Annexure `VIII'
Scope of Internal Audit for Head Office / Regional Offices
Internal Auditors are required to cover all the areas specified below in the Detailed Scope of
Internal Audit for financial year 2019-20.
Internal Auditors should inform any serious irregularity in the unit to NTC Head Office, New
Delhi as "SPECIAL REPORT TO H.O." separately.
The role of internal Auditor is not confined only to pointing discrepancies but also suggesting
remedial measures against these discrepancies and risk involved therein.
Draft Internal Audit Report should be discussed with the unit head and their replies towards
each auditor's observation should also be incorporated in the report.
Quarterly/Half yearly Trial balance should be enclosed along with the Internal Audit Report,
duly signed by the Internal Auditor and the unit head. Trial Balance should provide Opening
Balance, Transaction during the period (Debit and Credit) and Closing Balance.
Internal Audit Reports should be submitted timely to the unit head and HO and timelines
mentioned in the appointment letter should be strictly adhered.
DETAILED SCOPE OF INTERNAL AUDIT
S. Particulars Particulars
No.
I Trial Balance 1. Reconcile opening balances of Balance Sheet items with last audited
Trial Balance / Balance Sheet.
2. Ensure that no back dated voucher is passed or modification in
vouchers passed is done in the previous audit period post completion
of audit.
II Cash / Bank 3. Cash / Bank Position
a. To report Cash Balance.
b. To report Bank balances in all the bank accounts (including inoperative
bank accounts).
4. Inoperative Bank Accounts
c. To identify and report inoperative bank accounts i.e. bank account in
which there has been no transaction in the last one year and reasons
for non-closure of such bank accounts.
5. Cash / Bank Book
To check and report whether :
d. Cash / Bank book is serially numbered, written, closed and signed by
the Accounts in charge daily with due accounting of all receipts and
payments;
27 | P a g e
e. Cash deposited to / withdrawn from bank is entered in Cash / Bank
book on the same day;
f. Cash / Bank Balance as per books of accounts tallies with the balance
as per Cash / Bank Book.
g. There was negative cash balance on any day during the period under
audit.
6. Bank Reconciliation Statement
h. To check and report whether Bank reconciliation statement in respect
of all the bank accounts is prepared and signed by the Accounts in
charge on monthly basis.
i. Verification of Bank Reconciliation Statement with Bank Statement /
Bank Certificate and to check and report whether :
Entries appearing in BRS are settled subsequently. If not, then
inquire into the nature and details of such outstanding entry.
Cheques issued but not cleared appearing in BRS for more than 3
months has been transferred to stale cheques and booked
accordingly.
7. FDRs / TDRs
k. To check and report whether any amount has been kept in FDRs /
TDRs with bank. If yes, then report the details thereof along with the
reasons thereof.
8. Physical Verification
l. Physical / surprise verification of cash on the first day of visit during
audit and check whether the physical cash balance tallies with the
balance shown by the cash book and report the discrepancy found, if
any.
m. Physical verification of unused blank cheque book / cheque leaves and
report the discrepancy found, if any
n. Physical verification of cancelled cheques during the audit period on
random basis and report the discrepancy found, if any.
o. Physical verification of FDRs / TDRs and report the discrepancy found,
if any.
9. Cash / Bank Payment / Receipt
To check and report whether :
p. Payments are made after proper sanction of Authorized person.
q. Unpaid amount, if any, on account of salary, wages, bonus etc. is
deposited in cash office without any delay;
r. Payments are made only against original supporting bills/invoices and
said bills / invoices are marked as "PAID" or "CANCELLED" along with
the date of payment after payment is made.
s. All cash and bank payments are entered in Docket Book.
t. There was any irregularity while making payment in cash beyond the
limit specified under Income Tax Act, 1961.
28 | P a g e
u. Cheques and drafts received are deposited in the bank account on the
same day or next working day.
v. Receipts through NEFT / RTGS are entered into the books of account
on the same day or next working day.
10. Cash / Bank Vouchers
To check and report whether :
w. All the relevant columns of the Cash / Bank Vouchers have been
properly filled in and vouchers are properly authorized.
x. Signature of the payee is taken by the cashier on the cash payment
voucher at the time of making cash payment and a revenue Stamp of
Re 1 is affixed thereon where cash payment exceeds ` 5,000.
11. Insurance Cover
To check and report whether :
y. Cash in safe/cash in transit is within the insurance cover taken.
z. Fidelity insurance cover is taken in the names of persons who have the
custody of cash.
12. Safe Custody
To check and report whether :
a. Cash is kept in safe custody at the close of business hours.
b. Cheque books and bank counterfoils are kept in safe custody.
c. Post-dated cheques received, if any are kept in safe custody until
deposited.
13. To report whether the cash handling person is permanent employee of
NTC.
III Fixed Assets 14. To check and report whether proper authorization has been taken from
the Appropriate Authority for purchase / sale / transfer of fixed assets
during the audit period.
15. To check and report whether transactions involving purchase / sale /
transfer of fixed assets have been properly recorded in the books of
accounts.
16. Fixed Asset Register
To check and report whether :
d. Fixed Assets Register (hereinafter referred to as "FAR") is maintained
and updated on regular basis (Manual / Computerized).
e. FAR give below details of the fixed assets :
Description;
Date of purchase;
Quantity;
Location;
Identification Number / Tag Number;
Original Cost / Purchase Price;
29 | P a g e
Rate of Depreciation / Useful life;
Accumulated depreciation;
Deletion / Inter-unit Transfer;
Written down value
f. Identification number given on the fixed asset tallies with the number
given in the FAR on random basis.
17. Physical Verification
To check and report whether :
g. Physical verification of fixed asset is carried out by the management at
least once in a year.
h. Physical verification sheets in respect of fixed assets are properly
prepared and duly signed by the persons responsible for carrying out
the physical verification. The name, designation of employees and the
date of carrying out the physical verification should also be clearly
mentioned in the physical verification sheets.
IV Sundry 18. Age-wise analysis of debtors giving details of debtors outstanding for:
Debtors, if Less than 3 months
any 3-6 months
6-12 months
More than 12 months
19. Verify that collections from debtors are on time and there is no delay
in collection and to ensure that interest is charged from parties on
delayed payments as per the sales policy. Please verify the details in
the Format "B" prescribed in Additional Standard Checklist.
20. In case of sales made against Post dated cheques, if cheque has
been deposited after due date, special mention in the report may be
given along with the reasons.
21. Verify the measures taken to recover / reduce sundry debtors and
report whether the follow up action on outstanding debtors is
sufficient or not.
22. Comment on the Debtors' account showing closing credit balances
along with the details and reasons for credit balances.
23. Check the Debtors' account where legal case has been filed and
ascertain the progress in the legal case.
V Sundry 24. Age-wise analysis of creditors giving details of creditors outstanding
Creditors, if for:
any Less than 3 months
3-6 months
6-12 months
More than 12 months
25. Comment on the Creditors account that are outstanding to be paid
since long (unclaimed Creditors) and that can be considered for a
write back in the books of account.
26. Comment on the Creditors' account showing closing debit balances
along with the details and reasons for debit balances.
27. Check the Creditors' account where legal case has been filed and
ascertain the progress in the legal case.
30 | P a g e
VI Scrap Sales 28. To check and report whether sale of scrap items is made only
through tender / open auction.
VII Accounting / To check and report whether :
Vouching 29. Monthly reconciliation of all accounting records such as bank
accounts, sub-ledger with main ledger accounts etc is done.
30. Proper distinction between revenue and capital expenditure is made
while accounting.
31. All the relevant columns of the Vouchers have been properly filled in
and vouchers are properly authorized and supported by bills /
invoices etc.
32. Voucher is prepared only in respect of original Bills / Invoices.
33. Bills / invoices are passed strictly as per the terms of purchase order
/ MoU / Contract.
34. To check the correctness of the accounting head expenses or
income and report the discrepancy, if any.
35. Ensure that input credit under GST is properly recorded in the books
of accounts.
VIII Insurance 36. Obtain a list / statement of all the Insurance policies and ensure that
all the assets of the company are fully and adequately insured.
37. Obtain a list of all the insurance claims pending for settlement and
comment upon the old pending cases.
38. Ensure that the Insurance policies are renewed in time i.e. before the
expiry of the period of validity.
39. Prepaid insurance expenses are booked adequately.
IX Advance to 40. Obtain list of Advance to employees to ascertain the amount
employees outstanding in the name of each employee and the date since when
the advance is outstanding to be settled. Enquire and report cases
where advances have not been settled for a long period along with
the reasons thereof.
41. Ensure that no further advance is given to an employee unless the
previous outstanding advance is cleared by him.
X Work To check and report whether:
Contracts 42. There was any lacuna in procedure adopted for award of civil work
contract, which was not beneficial to NTC
43. The rates for carrying out the jobs work was finalized after a proper
comparison of the rates and further negotiation.
XI Statutory 44. To check and report whether the provisions of Income Tax / GST /
Compliances PF / ESI / Professional Tax have been complied with.
45. To check and report whether tax payments are made and returns are
filed within the due date.
46. To report month wise payment of dues in the format given as
Annexure `A'.
31 | P a g e
XII MVRS 47. To check and report whether MVRS funds, if any, are kept in a
separate bank account and there is no diversion of funds for any
other purpose.
48. Whether Utilization Certificate of funds released for MVRS or any
other purpose is given from time to time.
49. To check that there is no deviation w.r.t to the guidelines contained in
NTC Modified Voluntary Scheme.
50. To check date of birth of the employee as per service record and to
ensure that there is no change in date of birth.
51. To check the date of joining and to ensure that ex-gratia payment is
made to workers as per guidelines contained in MVRS.
XIII Budgets 52. To report whether budgeted estimates of expenditures are deviated.
XIV Personnel 53. Review the personnel service files of employees kept by the
Personnel Department to check whether
All the copies of certificates / testimonials have been taken
from the employees at the time of joining.
Copies of appointment advice / appointment letters /
confirmation letters etc are kept in the service files
Nomination in case of Gratuity / Pension / PF /
superannuation etc has been collected from the
employees.
All other documents like increment letters / promotion letters
etc are properly filed in the service files.
54. Ensure that the Personnel Department is taking due care in case of
contract labour employed by it to ensure that legal and statutory
obligation like PF / ESI are taken care of. The Personnel Department
should maintain proper attendance record in respect of the contract
labour and should obtain copies of monthly PF / ESI challans from
the contractor.
55. Check that the various licenses are renewed in time.
56. Ensure that the various provisions of industrial and labour laws
like The Apprentices Act / Payment of wages Act / Minimum wages
Act etc. are duly complied with.
57. Ensure that proper attendance / leave records are maintained by the
Personnel Department is respect of all the workmen / staff / officers/
managers / higher management.
58. Verify system of settlement of terminal dues.
59. To check and report whether the system of marking attendance has
adequate checks and controls. Point out the lacunae / weakness in
the internal control system.
32 | P a g e
XVI Additional 60. To assess adequacy of internal checks & internal controls in the
points organization.
61. To comment on the adequacy of laid down procedures.
62. To evaluate Joint Venture's transactions and monitors its result to
ensure commitments of the strategic partners in the Joint Ventures.
63. Scrutinizing tenders / contracts of high value (Rs. 10 Lakhs & above).
64. Verification and review of old outstanding loans and advances and
details provided to Head Office for further consideration.
65. Whether the action plans to comply with the Cost Auditors
observations have been made and action taken report in respect of
action plan is being submitted.
33 | P a g e
Annexure `A'
NAME OF UNIT __________________________________________
STATEMENT SHOWING PAYMENT OF DUES
FOR THE MONTH OF _________________
S. Particulars Amount Due Amount Paid Due Date Date of Remarks, if
No. of Payment Payment any
1 Provident Fund
e. Employees'
Contribution
f. Employers'
Contribution
2 ESI
g. Employees'
Contribution
h. Employers'
Contribution
3 Professional Tax
4 TDS
5 GST
6 Custom Duty
7 Property Tax
8 Land Revenue /
Cess
9 Electricity Bill
10 Water Bill
11 Others,
Please Specify
Total
34 | P a g e
Annexure-`IX'
Standard Checklist on Adequacy of Internal Checks / Internal Controls
S. No Particulars Test Description Checked Comments/
Yes No Remarks
1 Personnel & Verify the bills of daily rated employees, medical and
Time Office hospitalization bills, loans and advances to
employees, workload agreements implementation etc.
Whether system of engagement of contractual
workers is transparent and necessary procedures
have been followed.
Whether system of engagement of permanent/badli
workers is transparent and necessary procedures
have been followed.
Verify the system of engagement of casual/badli
workers with reference to rate of wages and other
benefits extended to them.
Whether random verification of workers and rates
offered to them have been checked and found in
order. If yes, dates of random verification may please
be given.
Whether actual deployment of workers is as per
workload agreements and record the variance if any.
If financial implication is arising on a/c of variance
between actual strength and strength as per workload
agreement, then payment made to them and actual
strength working in the mills is checked on monthly
basis. (as per format "I" below)
Verify the correctness of deduction of PF and ESI.
Does System of attendance, have adequate checks
and controls.
Whether payment of other allowance/ incentive
payments/ overtime etc. is made after proper review
and whether system of such review is adequate.
If the reply to above is negative, a separate detail of
sample checks and irregularity and suggestions for
improvement may also be given.
Format "I" (Monthly statement of contractual workers)
S. No. Particulars Strength Actual Actual Actual Variance Variance Remarks
of workers as per Sanctioned on roll deployment between between
Workload strength
Agreement
a b c d (a-b) (b-d)
1 Skilled
2 Semi-skilled
3 Unskilled
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S. No Particulars Test Description Checked Comments/
Remarks of
the Internal
auditors
Yes No
2 Purchases A) Raw Material
Whether Raw material is procured as per the
prescribed/ approved policy of the corporation and in
line with indent.
Whether deviation in respect of quality, stocking,
payment and any other terms if any, in procurement
dealt with as per purchase policy and tender terms and
conditions.
Verify that purchases are made against the confirmed
supply orders.
Ensure the correctness of order placed with most
economical party after due comparison.
Whether interest carrying charges have been paid to
raw material supplier. If so, whether the payment is as
per contract/ MOU/ Purchase order, Please verify in
the prescribed format 'II' below.
(i) Whether quality control on cotton purchases exists.
(ii) If yes, whether sample selection procedure is
transparent and adequate.
(iii)Whether size of sample checked is adequate.
B) Stores and Spares
(i) Whether purchases of stores and spares are
against the indent placed by user department and
with reference to stock available, average
consumption per month along with future
consumption pattern.
(ii) Whether the system from raising of indent to
issuance of stores and spares is adequate.
Whether purchase procedure and system adopted for
procurement of stores and spares is transparent and
adequate.
Whether purchase of stores and spares is as per
existing policy if any.
Verify the accounting of purchases of stores and
spares.
Whether movement of stores and spares has been
checked.
Ensure the correctness of order placed with most
economical party after due comparison.
C) Capital Purchases
Whether capital purchases on P&M, building have
been done with proper approval of HO.
Whether capital purchases of miscellaneous items like
Add on items, staff car, furniture and fixtures etc. have
been done with proper approval of HO/RO/Mill
Whether utilization of funds for purpose for which
released has been done?
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Format "B"
S.No. Party Amount Date of Date of Due date No. of Rate of Amount Remarks/
Name of order Supply Payment of days of interest of reasons
Order as per Payment delay % Interest for delay
details P.O.
S. No Particulars Test Description Checked Comments/
Yes No Remarks of the
Internal
auditors
3 Expenditures Whether verification of head wise actual
as per expenditures made against approved annual
Budgeted budgeted estimates for raw material, salary, power &
Estimates fuel, consumption of stores etc. is done.
Whether check and verification of expenditures on
projects against their approvals done especially in
case of Greenfield projects
Whether check and verification of working capital
requirement and its utilization done.
Whether utilization of funds released has been done
for purpose for which it has been approved.
4 Quality Whether quality check of work in process material
Controls and finished goods is done.
Whether sample size is adequate and quality
control is proper.
Whether deviations if any are dealt with as per
procedure.
5 Sales A) Sales
Whether Sales are made as per the Sales Policy
with regard to cash discount, Qty discount, godown
charges, forward Sales, Interest collected for
delayed payments etc.
Whether review of sale of yarn and cloth below floor
prices done and found to be authentic.
Whether Performa invoice has been prepared as per
order and whether the actual deliveries made
accordingly. Reasons for deviation should be
recorded by mill management.
B) Sold stock not lifted
Verify quantity sold but not lifted.
Whether reason for non-lifting within specified time
has been recorded.
Whether interest/penalty has been charged for late
lifting.
Whether such material has been used / disposed off
after specified period.
Whether any loss/cost on account of above has
been incurred by the company and same has been
debited to party or not.
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C) Scrap/Waste Sale
Whether process wise scrap and waste identified
and segregated.
Whether sales procedure has been followed for sale
of scrap and waste.
Whether un-lifted scrap is lying for unreasonable
period? Reasons for the same should be recorded
by the management. Please also specify whether it
has been dealt with as per procedure.
6 Miscellaneous Whether proper follow up for goods sent as samples
and in case of non-return within specified time the
`suppliers account' is debited with the cost of
samples is ensured?
Verify the correctness of repair and maintenance of
vehicle and review the nature of repairs.
Verification of inputs and outputs, recovery of yarn,
stoppage, packing reports and maintenance along
with idle capacity.
Verify the maintenance of cost records as per cost
accounting records rules
Whether verification of cloth produced is done as per
production plan.
Whether MIS reports given to HO reconciled with
records maintained by Mills on random basis with
regard to production, raw material & power
consumption, Sales etc.
Whether verification of variety wise waste product
done.
Whether verification of actual power cut from State
Electricity Board done as per register maintained in
the unit?
Whether power purchased from private party as per
approved power agreement?
Whether actual shortage of power cut assessed from
record?
Whether purchased of diesel is done as done as
per procedure?
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Annexure `X'
List of units to be audited and their details
Category I - Running mills (Period of reporting Quarterly)
S. No. Particulars of the Running Mills Location Capacity Annual
Spindles Looms Turnover (In
(Nos.) (Nos.) Rs Lakhs)
1 Cambodia Mills Coimbatore, Tamil Nadu 42672 - 3947.72
2 Pankaja Mills Coimbatore, Tamil Nadu 31500 - 2997.60
3 Pioneer Mills Paramakudi, Tamil Nadu 46176 - 6083.96
4 Keleeswarar `B' Mills Kalayarkoil, Tamil Nadu 52768 - 6905.48
5 Sri Rangavilas Mills Coimbatore, Tamil Nadu 40320 - 4962.50
6 Coimbatore Murugan Mills Coimbatore, Tamil Nadu 15960 48 3557.49
7 Coimbatore S. & W Mills Coimbatore, Tamil Nadu 17136 - 1185.93
8 Vijay Mohini Mills Thiruvananthapuram, 25056 - 3557.49
Kerala
9 Cannanore Spg. & Wvg, Mills Mahe, Puducherry 28560 - 3153.27
10 Cannanore Mills Kannur, Kerala 52032 - 8549.40
11 Alagappa Mills Thrissur, Kerala 45296 - 3341.22
12 Kerala Laxmi Mills Thrissur, Kerala 42944 - 4463.31
13 New Minerva Mills Hassan, Karnataka 43200 48 6821.60
14 Tirupathi Mills Tirupathi, Andhra Pradesh 8640 - 979.37
15 Podar Mills Mumbai, Maharashtra 13776 - 1632.18
16 Tata Mills Mumbai Maharashtra 34640 96 3629.26
17 Indu No. 5 Mills Mumbai Maharashtra 39008 - 3934.85
18 Barshi Mills Barshi Maharashtra 23312 - 2337.04
19 New Bhopal Textile Mills Bhopal, Madhya Pradesh 25200 - 6240.96
20 Burhanpur Tapti Mills Burhanpur Madhya Pradesh 51264 - 8431.26
21 Arati Mills Kolkata, West Bengal 29520 - 2604.25
22 Finlay Mills Achalpur Maharashtra 48000 144 5529.58
23 Raj Nagar Textile Mills Ahmedabad, Gujarat 36000 72 6018.28
Category III - Regional Office(s) (Period of reporting Quarterly)
S. No. Particulars of the Regional Office(s) / Sub Office(s) / Divisional Location
Office
1* Southern Regional Office & Closed Mills of Bangalore Office.including Coimbatore, Tamil Nadu
minerva mill
2 Western Regional Office Mumbai, Maharashtra
* The assignment of internal audit of units has been clubbed wherever necessary considering volume of work and
location.
39 | P a g e
Annexure `XI'
List of units to be reviewed by CIA and their details
Category I - Running mills (Period of reporting Quarterly)
S. No. Particulars of the Running Mills Location Capacity Annual
Spindles Looms Turnover (In
(Nos.) (Nos.) Rs Lakhs)
1 Cambodia Mills Coimbatore, Tamil Nadu 42672 - 3947.72
2 Pankaja Mills Coimbatore, Tamil Nadu 31500 - 2997.60
3 Pioneer Mills Paramakudi, Tamil Nadu 46176 - 6083.96
4 Keleeswarar `B' Mills Kalayarkoil, Tamil Nadu 52768 - 6905.48
5 Sri Rangavilas Mills Coimbatore, Tamil Nadu 40320 - 4962.50
6 Coimbatore Murugan Mills Coimbatore, Tamil Nadu 15960 48 3557.49
7 Coimbatore S. & W Mills Coimbatore, Tamil Nadu 17136 - 1185.93
8 Vijay Mohini Mills Thiruvananthapuram, 25056 - 3557.49
Kerala
9 Cannanore Spg. & Wvg, Mills Mahe, Puducherry 28560 - 3153.27
10 Cannanore Mills Kannur, Kerala 52032 - 8549.40
11 Alagappa Mills Thrissur, Kerala 45296 - 3341.22
12 Kerala Laxmi Mills Thrissur, Kerala 42944 - 4463.31
13 New Minerva Mills Hassan, Karnataka 43200 48 6821.60
14 Tirupathi Mills Tirupathi, Andhra Pradesh 8640 - 979.37
15 Podar Mills Mumbai, Maharashtra 13776 - 1632.18
16 Tata Mills Mumbai Maharashtra 34640 96 3629.26
17 Indu No. 5 Mills Mumbai Maharashtra 39008 - 3934.85
18 Barshi Mills Barshi Maharashtra 23312 - 2337.04
19 New Bhopal Textile Mills Bhopal, Madhya Pradesh 25200 - 6240.96
20 Burhanpur Tapti Mills Burhanpur Madhya Pradesh 51264 - 8431.26
21 Arati Mills Kolkata, West Bengal 29520 - 2604.25
22 Finlay Mills Achalpur Maharashtra 48000 144 5529.58
23 Raj Nagar Textile Mills Ahmedabad, Gujarat 36000 72 6018.28
Category II - Closed Mills (Period of reporting Half Yearly)
S. No. Particulars of the Closed Mills Location
1 Parvathi Mills Kollam, Kerala
2 Finlay Mill Mumbai, Maharashtra
3* Laxmi Narayan Cotton Mills; Orissa Cotton Mills & Sodepur Cotton Mills Kolkata, West Bengal
4* Atherton West Mills; Luxmi Ratan Cotton Mills; Muir Mills; New Victoria Kanpur, Uttar Pradesh
Mills & Swadeshi Cotton Mills
5 Bijli Cotton Mills Hathras, Uttar Pradesh
40 | P a g e
6 Raebareli Textile Mills Raebareli, Uttar Pradesh
7 Shree Vikram Cotton Mills Lucknow, Uttar Pradesh
8 Lord Krishna Tex.Mills Saharanpur, Uttar Pradesh
9 Swadeshi Cotton Mills Mau, Uttar Pradesh
10 Swadeshi Cotton Mills Naini, Uttar Pradesh
11 Mahalaxmi Mills Beawar, Rajasthan
12 Shree Bijai Cotton Mills Bijainagar, Rajasthan
13 Udaipur Cotton Mills Udaipur, Rajasthan
Category III - Regional Office(s) / Sub Office(s) / Divisional Office (Period of reporting Quarterly)
S. No. Particulars of the Regional Office(s) / Sub Office(s) / Divisional Location
Office
1* Southern Regional Office & Closed Mills of Bangalore Office.including Coimbatore, Tamil Nadu
minerva mill
2 Western Regional Office Mumbai, Maharashtra
3 Sub-Office - Ahmedabad Ahmedabad, Gujarat
4* Sub Office, Kolkatta including closed mill - Bihar Cooperative & Kolkata, West Bengal
Associated Industries Assam
5 Sub Office, Indore Indore, Madhya Pradesh
6 Kanpur Sub Office Kanpur, Uttar Pradesh
7* Divisional Office, Delhi including 02 closed mills - Kharar Textile Mills and Shahdara, Delhi
Suraj Textile Mills and 01 showroom at Shahdara
Category IV - Retail Marketing Division / Depot
S. No. Particulars of the RMD / Depot / Showroom Location Period of
Reporting
1 Retail Marketing Division - Coimbatore Coimbatore, Tamil Nadu Quarterly
2* Retail Marketintg Division - Mumbai with 10 Show Mumbai, Maharashtra Quarterly
Rooms (WRO)
3* Retail Marketing Division - Ahmedabad with 03 Ahmedabad, Gujarat Quarterly
showrooms
4* Retail Marketing Division - Kolkata with 01 showroom at Kolkata, West Bengal Quarterly
Nehru Road
5* Retail Marketing Division - Guwahati with 01showroom Guwahati, Assam Quarterly
at Guwahati
6 Retail Marketing Division - Bhubaneswar Bhubaneswar, Odisha Quarterly
7 Retail Marketing Division - Patna Patna, Bihar Quarterly
8 Central Distribution Depot, CS&W Mills Compound Coimbatore, Tamil Nadu Half Yearly
9 Up-Country Depot, Bhiwandi Bhiwandi, Maharashtra Half Yearly
10 Local Yarn Depot - Tirupur Tirupur, Tamil Nadu Half Yearly
11 Local Yarn Depot - Erode Erode, Tamil Nadu Half Yearly
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Category V Showrooms (Period of reporting Half Yearly)
S. No. Particulars of the Showroom Location Provisional
Annual Turnover
(In Rs Lakhs)
1* R.S. Puram Coimbatore, Tamil Nadu 9.51
Sundarapuram 19.32
Karpagavilas 18.59
Peelamedu 22.92
2 Attur Tamil Nadu 22.64
3 Chengam Tiruvannamalai District, Tamil Nadu 9.53
4 Cudddalore Tamil Nadu 18.33
5 Kumbakonam Tamil Nadu 6.17
6 Madurai Tamil Nadu 7.49
7 Mayiladuthurai Tamil Nadu 3.27
8 Nagercoil Tamil Nadu 7.84
9 Neyveli Tamil Nadu 11.69
10 Ooty Tamil Nadu 12.31
11 Pattukottai Tamil Nadu 3.19
12 Paramakudi Tamil Nadu 7.21
13 Purasavakam Chennai, Tamil Nadu 17.84
14 Trichy Tamil Nadu 9.49
15 Aluva Kerala 32.43
16 Kannur Kerala 115.75
17 Ernakulam Kerala 58.28
18 Kollam Kerala 115.21
19* Jaya Nagar Bengaluru, Karnataka 3.28
Public Utility Building 34.25
Rajaji Nagar 3.38
20 Belgaum Karnataka 2.11
21 Mangalore Karnataka 4.32
22 Mysore Karnataka 4.71
23 Gun foundry Hyderabad, Telangana 31.56
24 Bhopal Madhya Pradesh 6.75
25* Behala Kolkata, West Bengal 3.09
Chandan Nagar 4.35
College Street 40.45
Gariahat 20.71
Lake Town 1.56
Park Street 10.01
26 Palta Palta, West Bengal 5.07
27 Bhubaneshwar Odisha 9.01
28 Nalco Nagar Odisha 1.10
29 Patna Bihar 136.80
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30 Bhagalpur Bihar 18.83
31 Muzaffarpur Bihar 26.74
32* Delhi Cantt. Delhi 14.24
East of Kailash 8.25
Kailash Colony 2.94
Moti Nagar 26.60
Shanker Road 21.70
Tagore Garden 6.96
Tilak Nagar 6.04
33 Ajmer Rajasthan 5.72
34 Jaipur Rajasthan 616.02
35 Bhilwara Rajasthan 4.82
36 Jodhpur Rajasthan 23.63
37 Kota Rajasthan 12.06
38 Sikar Rajasthan 14.79
39 Udaipur Rajasthan 20.17
40 Karnal Haryana 171.25
41 Chandigarh Chandigarh 31.44
42 Shimla Himachal Pradesh 5.76
43 Kanpur Uttar Pradesh 46.01
* The assignment of internal audit of units has been clubbed wherever necessary considering volume of work and
location.
43 | P a g e
Annexure `XII'
Minimum Audit Fee
Sl. Name of the unit Location of unit Minimum Audit Fee
No. (in Rs.)
1 Cambodia Mills Coimbatore, Tamil Nadu 40,000
2 Pankaja Mills Coimbatore, Tamil Nadu 36,000
3 Pioneer Mills Paramakudi, Tamil Nadu 36,000
4 Keleeswarar `B' Mills Kalayarkoil, Tamil Nadu 36,000
5 Sri Rangavilas Mills Coimbatore, Tamil Nadu 36,000
6 Coimbatore Murugan Mills Coimbatore, Tamil Nadu 72,000
7 Coimbatore S. & W Mills Coimbatore, Tamil Nadu 31,500
8 Vijay Mohini Mills Thiruvananthapuram, Kerala 43,000
9 Cannanore Spg. & Wvg, Mills Mahe, Puducherry 43,000
10 Cannanore Mills Kannur, Kerala 43,000
11 Alagappa Mills Thrissur, Kerala 36,000
12 Kerala Laxmi Mills Thrissur, Kerala 43,000
13 New Minerva Mills Hassan, Karnataka 75,000
14 Tirupathi Mills Tirupathi, Andhra Pradesh 40,000
15 Podar Mills Mumbai, Maharashtra 85,000
16 Tata Mills Mumbai Maharashtra 45,000
17 Indu No. 5 Mills Mumbai Maharashtra 69,000
18 Barshi Mills Barshi Maharashtra 73,550
19 New Bhopal Textile Mills Bhopal, Madhya Pradesh 40,000
20 Burhanpur Tapti Mills Burhanpur Madhya Pradesh 37,000
21 Arati Mills Kolkata, West Bengal 38,000
22 Finlay Mills Achalpur Maharashtra 49,500
23 Raj Nagar Textile Mills Ahmedabad, Gujarat 39,000
Total Audit Fee of 23 Running Mills 10,86,550
1 Southern Regional Office & Closed Mills of Coimbatore, Tamil Nadu 52,000
Bangalore Office.including 44inerva mill
2 Western Regional Office Mumbai, Maharashtra 40,000
Total Audit Fee of 2 Regional Offices 92,000
1 Head Office New Delhi 1,40,000
Grand Total 13,18,550
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