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milma
Malabar Regional Co-operative Milk Producers' Union Limited
Head Office, Kunnamangalam, Kozhikode 673571,, Kerala,
Ph: 0495 - 2805418, 2805417,280416 Fax: 2800648,
www. malabarmilma. com; E-mail : ho. asc@malabarmilma. cogp
EXPRESSION OF INTEREST REF No.MRUiACTS/55/9 1 l21l9-20 I
Inviting Expression of Interest for Internal Audit for the year 2019-20
milrna.
Malabar Regional Co-operative Milk Producers' Union Limited
Head Office, Kunnamangalam, Kozhikode 673571, Kerala,
Expression of Interest for Internal Audit for the year 2019-20
Ph: 0495 -2805418,28054 16,2805417 Fax: 2800648,
www.malabarmilma.com; E-mail: ho.acc@malabarmilma.coop
-1.Malabar Regional Co-Operative Milk Producers' Union Ltd. (MRCMPU Ltd.)
invite Expression of Interest for Internal Audit for the year 2019-20from reputed
firm of Chartered Accountants in the various units of MRCMPU Ltd. The firms
should be well-established and experienced in Internal Auditing and other
accounting jobs. The term of Internal Auditfwill be for a period of three years with
effect from 01.04.2019 as per the terms and conditions attached with this
notification, subject to satisfactory completion of the first year Audit and
reasonable hike in the fees will be granted on mutual consent during 2nd and 3'd
year. Interested and eligible Chartered Accountants firms may obtain further
information from the Head Office of the Malabar Regional Co-operative Milk
Producers' Union Limited, Peringolam (P. O), Kunnaman galam, Kozhikode.
1. The offer shall be submitted in two cover system consisting of technical
qualification and price offer. The price offer shall contain a detailed working of
costing for the price. The price offer of those who qualifu in the technical
qualification only wil1be considered for opening.
2. Detailed terms and conditions are contained in the offer document of the above
work which is uploaded in the Kerala Government e-portal
www. etenders.kerala. gov. in
a. Offer reference No : No. MRU/ACTSI 55 19 I 12019 -22
b. Estimated offer : Rs.10.00 Lakhs per year including GST
c. Offer download : Can be downloaded from the
Websitewww. etenders.kerala. gov. in -
d. Offer publishing date : 20.05.2019, 1 1.00 hrs.
e. Offer submission closing date : 04.06.201 9, I 7.00 hrs.
f. Offer opening date : 06.06.2019, 1 1.00 hrs.
o
b' Offer validity :24 days
I(ozhikode sd/-
MANAGING DIRECTOR I/c
20.05.20t9
2
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TERMS AND CONDITIONS FOR THE OFFER
1. ELIGIBILITY CRITERIA
a) The Chartered Accountancy Firm should have necessary Registration Certificate
from the Institute of Chartered Accountants of India.
Q) fne Chartered Accountancy Firm should have valid EPF registration, ESI
registration, GST registration and independent EPF and ESI code numbers if
applicable.
c) The Chartered Accountancy Firm should have PAN of Income Tax Department..
d) The partners of Chartered Accountancy Firm should also have member number
issued by the Institute of Chartered Accountants of India.
e) The Chartered Accountancy Firm should submit their detailed profile along with
the offer.
0 The Chartered Accountancy Firm should have its office at Calicut and those who
have more branches/ tie ups, under MRCMPU's area operation from Kasaragod
district to Palakkad district will be prefened.
g) The Chartered Accountancy Firm should have at least Ten years' of experience in
the field of providing internal audit service and accounting job.
h) As on 01-07-2019, the Chartered Accountancy Firm should have minimum three
qualified chartered Accountants including partners and names of Chartered
Accountants shall be uploaded with the offer.
i) The Firm's annual financial turnover during the last three years shall not be less
than Rs.50 lakhs and the proof of the financial turnover of the last three years
(audited income & expenditure statement or IT return) shall be uploaded along
with the offer.
j) Proof of the above eligibility criteria shall be uploaded along with the first cover
ie technical qualification , failure of which will lead to disqualification of the
offer.
2. pISQIIALIf'ICATTONS
a) The Chartered Accountancy Firms who were appointed earlier as internal auditors
by MRCMPU Ltd. during previous years and who were unable to operate the
work successfully, are not eligible for being reappointed.
. b) The Chartered Accountancy Firms who do not submit along with the offer, the
copies of documents, possession of registrations/licensesflPAN /Licence from the
--
Institute of s Chartered Accountants of India as in Sl .no 1(a) above, are not
eligible for being appointed.
Units to be covered
Head office at Peringolam, Kunnamangalam.
Kozhikkode Dairy at Peringolam, Kunnamangalam.
Kannur Dairy at Pallikkunnu, Kannur.
Palakkad Dairy at Kalleppully, Palakkad
Kasaragod Dairy at Mavungal, Kanhangad.
Waynad Dairy at Chuzhali, Kalpetta.
MalayoraDairy, Sreekandapuram, Kannur.
Central Products Dairy, Naduvattom, Kozhikode.
Procurement and Input Centres at Peringolam, Nilambur, Kannur, Kanhangad,
Kalpetta, Palakkad, Pattambi, Kottakkal, Attappadi and Vadakara.
j. Milk Chilling centres at Nilambur, Mananthavadi, Pattambi, Attappadi, Vadakara,
Kottakkal A4oorkanad.
k. Marketing Depots at Chinakkal (kottakkal)/Moorkanad, Ulliyeri, Nilambur,
Pattambi, Alathur, Koyippady, Ramanattukara,Pathiripala and Nadapuram.
1. Ginger processing/feed milling plant, Meenangady.
3. The Scope of Work
The Internal Audit shall cover all activities of Head Office, Dairy Plants at Kozhikode.
Kannur, Palakkad, Waynad , Kasaragod, Sreekandapuram, CPD Naduvattam and all
other Units mentioned above. The work includes:
1. Verification of all books of accounts like Ledger, Cash Book, Bank Book,
Journal, Register, Voucher, and other relevant records and the accounting system
of HO and units.
2. Verify all records of purchase, production / manufacturing, sales, stores and all
other operations, machines, vehicles etc. of Head Office and units.
3. Critically examine the various software packages used for different operations in
HO and units viz. Marketing, Financial, HR, Milk billing, Stores/ Inventory,
RMRD, production etc. and evaluate their performance and adequacy compared
to the volume and nature of business and transactions.
4. Critically examine the various internal control systems of all units with respect to
each operational area and report whether they are sufficient. If not sufficient
report the same with specific suggestions for improvement.
5. Critically examine the major elements of cost such as transportation, power, fuel,
repairs, consumables etc. and advise the Management for proper control, where
ever necessary.
6. A route wise analysis of T C for Milk and Milk products with respect to the
capacity utilisation and percentage on the value of goods transported.
7. Physical verification of stock of finished goods of milk, milk products and other
products, raw materials, stores and other inventories of all units including
marketing depots. It shall be done at the end of each reporting quarter (June 30,
September 30, December 31 and March 31) in case of Dairy plants and at the
time of each visit to other units.
B. The stock registers of raw materials, finished goods and the stores records shall
be verified at frequent intervals and report the mistakes / differences to the
concemed unit head in writing for rectification, copy of which may be attached in
the Intemal audit report. Surprise verification of major stock items and cash shall
be conducted at least once in a month. You have to certify the quarterly Stock
statement prepared in the Dairy / Chilling centers and submit along with the
Internal Audit report.
9. Internal audit shall cover all operational areas which include purchase of milk,
other raw materials, consumables, packing materials etc., processing, quality
control, packing, sales, marketing, transportation, cash collections, marketing
depot operations, man power outsourcing etc.
10.You have to regularly verify the records of production, quality control, marketing
section etc. and reporl that the records are maintained properly and reconciled
regularly, and if necessary help in reconciling the same.
1 l.Union has been outsourcing many unskilled jobs to the independent labor / other
contractors. You have to examine all such agreements and payments to such
contractors and see that the statutory requirements are complied with and all
payments are made as per the agreement only.
12.Ensure that various rules and procedures and statutory requirements to be
followed in respect of various activities are fully complied with.
13.Lot of amendments in commercial laws is regularly taking place which requires
compliance of various statutory requirements. You have to reporl whether such
requirements are correctly complied with.
14.Report that various orders. circulars, instructions like price of products, norms
and procedures for certain activities etc. issued from the Head Office are properly
implemented and complied with.
15.Verify I certify the correctness of the quarterly trial balance, P&L Account and
Balance Sheet of Head Office and Dairy Plants prepared by the respective units
using the computerized Accounting Package with schedules.
l6.Verification of the books and records and certification of all Statements of
Expenditure, like RKVY (RashtriyaKrishiVikasYojana), RSVY (Rashtriya Sam
VikasYoj ana), SC /STDevelopment Projects; NDP (National Dairy plan), NPDD,
GOK Plan Fund etc. or other statements to be submitted to the project authorities
(ie. Gol,t of India, Govt. of Kerala, NDDB etc) as per the format and time
schedule prescribed.
lT.Verification of tender (E -tender also) its formalities and procedures for the
purchase orders placed from Head Office regularly with regard to its correctness
and accuracy that it complies with all the rules and procedures as and when
required. The tender verification cerlificate is to be issued wherever necessary.
l3.Verification and cerlification of ESI Returns (half yearly/yearly etc.) to be
furnished to Employees State Insurance Corporation by the Dairies & Head
Office.
l g.Providing necessary professional and other advices as and when necessary.
20.Verification of all book of accounts of MRCMPU employees group gratuity fund
trust accounts.
Zl.A brief Reporl incorporating all major and relevant points (Executive Summary)
shall also be fumished for each quarter along with the internal audit reporl.
22.Thelnternal Audit repofi shall be submitted for each quafter before the end of the
subsequent month of each such quarler. A11 Internal audit reports shall contain a
reporl on all the points mentioned in 1 to 15 above.
In addition to the above the internal auditor will focus on the following specific
points:
1 Surprise verification of physical stock and tally with the software generated
stock register for anY Product.
2 Date wise verification of Intra Union stock Transfer quantity of Milk and
Milk products by comparing the stock register at source and destination
units obtained from production software with the help of MIS deparlment
for operating the sYstem.
3 euarterly Analysis of the following reports obtained from production
software
a. Fat and SNF loss%
b. Cream to Ghee conversion losso%
c. Cream to Butter conversion lossoZ
d. Butter to Ghee conversion losso%
e. Yield o/o of Peda, Palada Mix and Paneer and other products.
4 Tallying of Quantity in the consolidated FAT &SNF Statement and P&L
Statement of DairY.
5 Date wise comparison of Market Return in the Marketing Package and
Production Package in Dairies and Depots.
6 Date wise comparison of Milk procurement Quantity between Milk Bill and
Production Package in Dairies and MCP/MCC.
7 Date wise comparison of Transit loss of milk between the Dairies and
Depots by comparing the concerned stock register'
8 Date wise comparison of tray movement between the Dairies and Depots by
comparing th; ffay movement report in the production software and
quarterly analysis of broken tray%o and tray usage per liter quantity (milk
and curd disPatched.
9 Comparison of Dairies based on the Head wise expenditure based on the
per kg Total Solids handled.
10 Quarterly analysis of packing film cost per liter, by comparing the packing
film cost and sales quantity of milk, curd and Sambharam.
11 Date wise verification of dispatch/ production quantity of milk and milk
products with labor contractor bill in dairies and depots were it is out
source.
12 Random checking of wholesale and retail rates of milk products in
marketing package.
13 Random checking of transportation rate of route vehicle in Marketing and
procurement routes.
- 14 Verification of realization of Inter Union sales of milk.
15 Verification of fluctuations in the monthly handling excess quantity of milk.
16 Verification of Milk bill apportioning of BMC milk purchase data.
In order to implement the above points, MRCMPU will assign the
Production Head as coordinator of the internal audit function with the help of MIS
Department.
General
1. The volume of work in our organization is very large. The turnover is increasing
and new projects, activities, products etc. are coming regularly, and the internal
audit shall cover all the activities of the Union. We expect your valuable
professional advices for improving the profitability, strenglhening the systems,
cost reduction, identiffing the uneconomic operations etc. Whenever any
violation of rules, dilution in the controls and systems, serious discrepancy or
unhealthy practice is observed during the Course of internal audit it shall be
brought to the notice of the Managing Director by way of confidential letter.
Similarly, you must bring to the notice of the unit heads any defect, short coming
etc in the system with suggestions for rectification/ improvement of the same.
2. Considering the volume of work it is absolutely essential that you have to deploy
your experienced staff in the Head Office and the Dairy Plants of Kozhikode,
Kannur, Sreekandapuram, Palakkad, Wayanad, Kanhangad and CPD
Naduvattom to conduct the work effectively. Therefore, attendance of at least
one experienced staff for at least 10 working days in a month in the Head Office
and the Dairies is essential for this engagement.
3. Visits to the Dairy and units and follow up by a qualif,red Chartered Accountant is
essential for the effective conduct of the internal audit. The reports on the above
visits and findings also shall form part in every internal audit report.
4. One of your experienced stafV chartered accountants shall attend the quarterly
internal audit review meetings held at unit level.
-t
Remuneration
The remuneration excluding GST for the above work shall be offered as detailed below
DairyiUnit Amount (Rs)
Head Office , 2 TMR Plants
Kozhikode Dairy, its 2 depots & 3 P&I office 2 Chilling Centre
Wayanad Dairy, its 2 depots and 1 P&I offlrces 1 Chilling Centre
Palakkad Dairy ,its 4 depots and 4 P&I offices 3 Chilling Centre
Kannur Dairy and Malayora Dairy , and 1 P&I offices
Kasaragod Dairy, its I depots and I P&I offices
Central Products Dairy, Naduvattom
Total
15. MODE OF PAYMENT:-
Quarterly payment pertaining to the Chartered Accountants Firm will be released by
cheque or through online transfer on submission of the GST bills in the name of
Dairy/Units as above. Statutory deductions(TDS ) if applicable will be deducted from
the bill amount.
A. Documents Comprising Offer:
i. The First Stage (Pre-Qualification or Technical Cover based on lcover):
Pre-Qualification or technical proposal shall contain the scanned copies of the
documents mentioned in the tender notice, which every bidder has to upload:
The MRCMPU doesn't take any responsibility for any technical snag or
failure that has taken place during document upload.
ii. The Second Stage (Financial Cover or as per offer cover system):
The CA firm shall complete the Price offer as per format given for download
along with this offer.
Note: The blank price offer should be downloaded and saved on the computer
without changing file-name otherwise price offer will not get uploaded. The firm
making the offer should filI in the details in the same file and upload the same
back to the website.
DATE: 20-05-2019
Signature Not Verified
Digitally signed by Thomas T M
Date: 2019.05.20 16:19:43 IST
Location: Kerala
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