TENDER SPECIFICATION
NO.MD/MK/04/592
(DUE FOR OPENING ON 20.09.18)
APPOINTMENT OF CHARTERED ACCOUNTANT FIRMS AS AN
INTERNAL AUDITOR OF FIELD OFFICES OF MPMKVVCL FOR
AUDIT BLOCK YEAR 2015-16 TO 2017-18
CHIEF GENERAL MANAGER (PROC),
M.P.MADHYA KSHETRA VIDYUT VITARAN CO. LTD.,
NISHTHA PARISAR, BIJLINAGAR, GOVINDPURA, BHOPAL-462023
PHONE NO.(0755)-2678325, 2602033-36
FAX NO. (0755)- 2589821, EMAIL- agmpur2@gmail.com
WEBSITE:WWW.MPCZ.CO.IN,
CIN NUMBER:U40109MP2002SGC015119
0
Contents
1. BACKGROUND -------------------------------------------------------------------------------------------------------------- 3
2. OBJECTIVES OF THIS ASSIGNMENT ------------------------------------------------------------------------------------ 3
3. TERM OF AGREEMENT (CONTRACT PERIOD) ----------------------------------------------------------------------- 3
4. BIDDING PROCESS --------------------------------------------------------------------------------------------------------- 4
5. DUE DATES ------------------------------------------------------------------------------------------------------------------ 4
6. SALE OF TENDER DOCUMENT ---------------------------------------------------------------------------------------- 4-5
7. QUALIFICATION CRITERIA ---------------------------------------------------------------------------------------------- 5-6
8. INFORMATION TO BIDDERS ----------------------------------------------------------------------------------------- 6-15
8.1 Submission of Proposal
8.2 Consortium
8.3 Language of the Proposal
8.4 Validity of Proposal
8.5 Earnest Money Deposit (EMD)
8.6 Examination of the Tender Document
8.7 Evaluation of the Proposals
8.8 Evaluation of the Financial Proposal
8.9 Selection Process
8.10 Proposal Currency
8.11 Performance Security Deposit
8.12 Pre-Bid Conference
8.13 Clarification/ Further Information
8.14 Amendment to the Tender Document
8.15 Right to Accept/ Reject Any or All Bids
8.16 Association with Individual Consultants
8.17 Commencement of Services
8.18 Co-ordination and Follow up to Audit Work
8.19 Suspension of Services
8.20 Payment Schedule/ Procedure for releasing of the Fees
8.21 Submission of Bills
8.22 Penalty
8.23 Performance Standards
8.24 Escalation
8.25 Disputes
9. SCOPE OF WORK ----------------------------------------------------------------------------------------------------- 15-36
9.1 Background
9.2 Organization Structure
9.3 Offices for Internal Audit
9.4 Structure of Audit Party
1
9.5 Mandates for the Bidder
9.6 Terms and Conditions
9.7 Office Space and Stationery
9.8 Periodic Assessment
9.9 Confidentiality
9.10 Terms of Reporting
9.11 Scope of Work
9.12 Scope of Expenditure and System Audit
9.13 Scope of LT Revenue Audit
9.14 Scope of HT Revenue Audit
9.15 Verification of Stores
9.16 Internal Audit of Books of Accounts at Accounting Units
10. MINIMUM FEES ----------------------------------------------------------------------------------------------------------- 37
ANNEXURE -1 List of Groups for Which Bids are Required ------------------------------------------------------ 38-48
ANNEXURE -2 Format of Price Bid ------------------------------------------------------------------------------------- 49-50
ANNEXURE -3 Covering letter for submission of Bids ----------------------------------------------------------------- 51
ANNEXURE -4 Letter for Submission of Cost of tender document and EMD ------------------------------------ 52
ANNEXURE -5 Bidders Background and Qualifications Criteria for Technical Evalution --------------- 53-54
ANNEXURE -6 Undertaking is to be submitted along with the Technical Bid ----------------------------------- 55
ANNEXURE -7 Format for Clarification in Tender Document -------------------------------------------------------
566
ANNEXURE -8 Composite Report format for the Audit of Auditee Office ----------------------------------- 57-58
ANNEXURE -9 Schedule of Opening of Financial Bids ----------------------------------------------------------------- 59
ANNEXURE -10 Indicative Performance Parameter of the work of Internal Auditor -------------------------- 60
ANNEXURE -11 Certificate of Completion of Internal Audit ----------------------------------------------------- 61-67
ANNEXURE -12 Proforma of Bank Guarantee for Contract Performance ------------------------------------ 68-69
ANNEXURE -13 Agreement ---------------------------------------------------------------------------------------------- 70-73
2
1. BACKGROUND
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL) Bhopal,
one of the successor Companies of MP State Electricity Board, with its head office at Nishtha
Parisar, Govindpura, Bhopal is a Power Distribution Company incorporated under the provisions of the
Companies Act, 1956(now companies Act, 2013).MPMKVVCL, Bhopal (herein after referred to as a
Company) is engaged in the distribution & retail supply of electricity to its consumers. It has its office of
operations spread in the specified area through 2 regional offices, 15 Circles, 49 divisions and about 342
Distribution centers/ Zones. The List of Offices is attached in Annexure 1. The Management of the
Company intends to appoint Internal Auditors, by engaging the Firms of Chartered Accountants with a
view to bring in a professional approach in the Internal Audit of the Power Distribution business in
Madhya Pradesh.
2. OBJECTIVES OF THIS ASSIGNMENT
Establish an effective internal audit and control system.
Achieve the objectives specified in the Corporate and Operational Plans.
Focus on regular Internal Audit of the office(s) to assess, review, recommend and comment in
respect of effectiveness and efficiency of accounting, financing, operation & maintenance
functions and procedural compliance at its Offices of Operations ;
To make management aware, as soon as practical and at an appropriate level of responsibility, of
material weaknesses in the design or operation of accounting and internal control systems, that
may have come to the notice of auditor in course of audit.
Compliance to the applicable Provisions, Orders and Rules Framed under the New Companies
Act, 2013 that require effective Internal Control Procedures in a Company.
To ensure that requirements under Companys Auditor Report (CARO) regarding Internal
Control and Internal audit are complied with, in a manner that also assists managements
objective of ensuring, as far as practicable, orderly and efficient conduct of its business. This shall
also include adherence to management policies, safeguarding of assets, Prevention and detection
of fraud and error, accuracy and completeness of the accounting records and timely preparation of
reliable financial information.
For the above said purposes, the Company hereby intends to initiate the process of selection of Chartered
Accountant Firms as "Internal Auditors for the Circle/Regional Offices " (herein after referred to as "CA
Firm" or "Auditors" or "Bidder"). Thus, the Company is issuing this Tender document inviting the
interested and eligible CA Firms to purchase the tender document and to participate in the Bidding
Process for the selection of Internal Auditors at the Regional/ Circle level.
3. TERM OF AGREEMENT (CONTRACT PERIOD)
CA Firm would be appointed as Internal Auditors of field offices for a period of Eighteen months (18
Months) commencing from the date of acceptance of LOA. The Company reserves the right to
appoint another CA firm to get the work done in the event of failure of the selected CA Firm to
3
commence the work within the prescribed time or terminate the Agreement any time before the
expiry of the Contract Period if the progress of work is not commensurate with the time completion
schedule or the audit is not found satisfactory to the objectives of the assignment or for any other
reasons seems fit to the Company.
4. BIDDING PROCESS
The Bidding process would be a two stage process and have the following Stages:
Stage I
Issuance of tender documents to the Bidders
Pre Bid conference
Submission of Technical Proposal and Financial Proposal.
Opening of Technical Proposal.
Short Listing of Qualified Bidders.
Stage II
Opening of Financial Proposal of Qualified Bidders
Evaluation of Financial Proposal
Issuance of Letter of Award
Signing of Agreement
Execution of Internal Audit Assignment
5. DUE DATES
S.No. Activities Due Dates
1 Issuance of Tender Document 4th Sept 2018
2 Pre bid conference 11th Sept 2018
3 Last date for receiving queries 14st Sept 2018
4 Last date for sale of Tender Document 19th Sept. 2018 (5:00 pm)
5 Last date of submission of Bid (Bid Deadline) 20th Sept. 2018 ( 3:00 pm)
6 Opening of Technical Proposal 20th Sept. 2018 ( 4:00 pm)
7 Opening of Financial Proposal (Tentative) 29th Sep 2018
8 Issue of Letter of Award (Tentative) 15th Oct 2018
9 Commencement of Audit (Tentative) 1st Nov 2018
6. SALE OF TENDER DOCUMENT
The tender document is available on the Companys website. The Bidder(s) may download the tender
documents from the website, and those prospective Bidders who have downloaded the tender document
from the official website of the Company and have not paid the amount of Rs. 2,000/- only (Rupees
thousand only) plus applicable GST as the cost of the tender document, shall be required to submit a bank
draft for Rs 2,000 only (Rupees Two thousand only) plus applicable GST (Non-refundable) drawn on a
4
scheduled bank in favor of "Accounts Officer, HOAU,MPMKVV Co. Ltd." Payable at Bhopal along
with the technical bid. Cheques will not be accepted.
This bank draft of Rs 2,000 only (Rupees Two thousand only) plus applicable GST shall be kept in
Envelope-1.Failure to submit the tender document fee as mentioned above shall lead to rejection of the
Bid.
Tender documents can also be purchased online and download from main portal
http://www.mpeproc.gov.in by making online payment for the prescribed non-refundable tender
document fees. Only in case if the tender is dropped without opening, the tender fees shall be
refunded after deduction of necessary portal charges. Manual purchase of tender is not allowed.
7. QUALIFICATION CRITERIA
7.1 The Bidder should be a partnership firm, registered under Partnership Act, 1932 or a Consortium
of not more than two (02) such partnership firms, with one of the firm acting as the Consortium
Leader. A Bidding Consortium can participate in the Bidding Process for the assignment if any
Member of the Consortium has purchased/downloaded the tender document.
7.2 The Bidder or the Consortium Leader should fulfill the following criteria to be eligible:
The Bidder must be in operation for at least ten (10) years. In case of Consortium, one firm
must be in operation for at least ten (10) years. The period of 10 years will be considered
from the date of registration of the firm. Copy of partnership deed to be provided by the
Bidder for verification.
The Bidder must have atleast 5 CA partners, minimum 3 partners of the firm should be FCA
and at least one partner must be DISA qualified.
The Bidder should not have less than Rs 50 lakhs professional receipts in preceding financial
year. In case of Consortium, at least one firm should not have less than Rs 50 lakhs
professional receipts in the preceding financial year.
The bidder shall require to submit last audited/certified financial statement along with the
offer. In case, latest audited financials i.e. for FY 2017-18 are not available, duly certified
CA certificate may be provided.
The Bidder must have its Head Office at Bhopal or Gwalior or the location of the Circle
office of the group for which the bidder is submitting his bid.
There should be no legal suit / Criminal case pending or contemplated against the Bidder on
the grounds of turpitude or for violation of any of the law in force.
Date of applicability of qualifying criteria and other parameters, unless otherwise
stated expressly, shall be 31st August 2018.
7.3 Information related to above mentioned criteria along with the covering letter to be provided in
Annexure 3-6 and must be submitted along with the Technical Proposal.
7.4 MPMKVVCL, reserves the right to verify / scrutinize any of the above mentioned information for
accuracy in case of credible evidence obtained for any false declaration, MPMKVVCL reserves
5
the right to take appropriate action as it deems fit in addition to cancel / terminate the contract or
disqualify such firm or firms.
8. INFORMATION TO BIDDERS
8.1 SUBMISSION OF PROPOSAL
Single Stage Three Envelopes bidding process shall be followed for the selection of the
CA Firms
o for Internal Audit at the Regional/ Circle/Division/DC Level; and
o HT Revenue Audit.
As the area of operation of Company is spread widely, the various offices in each Circle are
listed in Annexure 1.
Revenue Audit of all the DCs shall be done for a block period of 3 years i.e. FY 2015-16 to
FY 2017-18.
Further, the System and Expenditure Audit for all the offices shall be done for a block period
of 2 years i.e. from FY 2016-17 to FY 2017-18. The Scope of Work is annexed in Clause
9.11.
As the Books of accounts are maintained at all the RAO Offices of the Company, the audit
for the Books of Accounts need to be done Quarterly for the current financial year i.e. FY
2018-19. The Scope of Work is annexed in Clause 9.11.
The Regional Office has Store and Civil Office also. The Physical Verification of Store is to
be done once in a year. The Scope of Work is annexed in Clause 9.11.
The appointment of Circle Level CA Firms shall be for a particular group, i.e. for all the
offices in that Group. The Internal Auditor shall be responsible for the audit of all the offices
comprising in the group & listed in Annexure 1, (Circle office, Division Office, RAO offices,
Store and Zones/D.C.s etc.) as per the Scope of Work.
Separate Proposal needs to be submitted in case the bidder opts to bid for more than
one Group. Each separate proposal must carry its EMD and must be submitted in
separate envelopes.
The Bids shall be opened as per the schedule mentioned in Annexure 9. If a bidder bids for
more than one group and selected for one Group then their bid for the other Groups shall not
be opened as NO bidder shall be appointed as Internal Auditor for more than one (1) Group.
Any CA Firm which is currently working as the Internal Auditor for any Circle of
MPMKVVCL is not eligible to participate in the tender. However If the present assigned
work of internal audit is completed by the CA firm then a self-declaration shall be given by
the firm regarding completion of work to participate in this tender. The declaration given by
the firm will be evaluated by the MPMKVVCL.
No partner of the firm should be employed or associated with MPMKVVCL in any capacity.
6
Envelope 1 shall contain the Bank draft of Rs. 2,000/- plus applicable GST in-case the
Bidders who have downloaded the tender document from the official website of the Company
and have not paid the amount of tender document. In case the Bidder has online paid
Rs. 2000/- plus applicable GST towards the cost of the tender document, the bidder shall
submit the copy of the receipt of the same in Envelope 1. The Earnest Money Deposit (herein
after referred to as EMD), shall be placed in the same envelope.
All the interested and eligible CA firms should submit their technical proposals in the
prescribed format given in Annexure 5 for each Group. Each copy being physically
separated, bound, sealed and labeled as "Envelope 2 - Bid for appointment as Internal
Auditor for the Group ...... (Circle 1...... and Circle 2.....) - Technical Proposal". The
bid which do not contain the requisite information or is not supported by the supporting
documents will be treated as non-responsiveness, and its financial proposal shall remain un-
opened.
The bidder has to quote their rates online only in Annexure 2 to be kept in envelope "3 and
upload online as per key dates. Please note that, the Schedules of price bid Annexure 2, i.e.
Financial bid (Envelope-3) will not be accepted physically. In case Envelope-3 is submitted
physically the bid will be rejected. The bid of the eligible bidder shall be opened online as per
key dates.
All these envelopes i.e. Envelope-1 & 2 shall be placed in an outer envelope and sealed. The
outer envelope shall bear the submission address, name of the bidder and clearly marked "for
appointment of the Internal Auditors for the Group ...... (Circle 1...... and Circle
2.....)".
The all copies of the Technical Proposal must be signed by the partner of the Bidder /
Consortium Leader.
Online bidders are required to sign their bids online using CLASS-II or CLASS-III DIGITAL
CERTIFICATE only.
All the Technical Proposals along with the EMD must be submitted at a drop box on
............ addressed to The Chief Finance Officer, O/o MD (CZ), MPMKVVCL,
Nishtha Parisar, Govindpura, Bhopal on or before the due date for submission of the
Proposals mentioned elsewhere in the Tender document.
The envelopes containing the Tender Fee & EMD will be opened on the specified date and
time in the presence of Bidders or their authorized representatives who choose to attend.
Once the technical evaluation has been done the Company shall intimate the schedule of
opening of Financial Proposal of the firms who have qualified the technical evaluation.
8.2 CONSORTIUM
Only the Consortium of Chartered Accountant Firms is allowed. A Memorandum of Understanding
among the Consortium Firms needs to be entered specifying which firm is the Consortium Leader, and
7
this document is to be submitted with the Technical Proposal. Moreover, one firm can be a part of only
one consortium. Firms cannot enter different consortiums for different groups.
The Team leader should ensure that all the deliverables are completed on time and proper checks
should be in place. Team leader should be accountable for all the deliverables and quality checks. All
Internal Audit Reports/ Deliverables or any other correspondence shall be sealed and signed by the any
Partner of the Consortium Leader Firm only. Any report/ correspondence by any other firm which is
signed or sealed by any other firm shall not be entertained by MPMKVVCL, Bhopal.
Further, the only point of contact for MPMKVVCL shall be Consortium Leader. All communications
shall be done only between the Company and the Consortium Leader.
8.3 LANGUAGE OF THE PROPOSAL
The PROPOSAL prepared by the Bidder and all correspondence and documents related to the Tender
document and PROPOSAL exchanged by the Bidder and MPMKVVCL shall be written in English.
Any printed literature furnished by the Bidder may be written in another language as long as such
literature is accompanied by its translation in English, in which case, for purposes of interpretation of
the tender document, the English translation shall govern.
8.4 VALIDITY OF PROPOSAL
The Bid shall remain valid for a period of 180 days from the date stipulated for submission of
proposal. MPMKVVCL reserves the right to request extension of the Bid validity for an additional
period of three (3) months, if necessary.
8.5 EARNEST MONEY DEPOSIT (EMD)
All interested bidders are expected to submit, along with their Bid, Earnest Money Deposit (EMD) as
per the table given below, in the form of DD / Bankers Cheque, drawn on any scheduled bank in
favour of Sr. Accounts Officer (HOAU), MPMKVVCL, payable at Bhopal.
Value of Service inclusive GST Amount of EMD
Upto Rs. 10,000 Rs 500
Above Rs 10,000 and up to Rs 2.5 Lakh Rs 2,500
Above Rs 2.5 Lakh and up to Rs 3 Lakh Rs 5,000
Above Rs 3 Lakh and up to Rs 7 Lakh Rs 10,000
Above Rs 7 Lakh and up to Rs 15 Lakh Rs 15,000
Above Rs 15 Lakh and up to Rs 25 Lakh Rs 20,000
Above Rs 25 Lakh and up to Rs 35 Lakh Rs 30,000
Above Rs 35 Lakh and up to Rs 50 Lakh Rs 40,000
Above Rs 50 Lakh and up to Rs 75 Lakh Rs 60,000
Above Rs 75 Lakh and up to Rs 100 Lakh Rs 80,000
Above Rs 100 Lakhs Rs 1,00,000
8
The EMD of the unsuccessful bidder shall be returned not later than sixty (60) days after the expiry of
the period of Bid validity as specified above.
However, EMD of Successful Bidder shall be returned after the submission of the Security Deposit
and Execution of the work.
8.6 EXAMINATION OF THE TENDER DOCUMENT
The prospective bidders are expected to examine the instructions, forms, terms and specifications in
the Tender Document. Failure to submit any information as required in the tender document will be at
bidders own risk and may lead to the rejection of the bid. Further, during the evaluation of proposals,
MPMKVVCL, Bhopal may at its discretion, ask the Bidders for clarification or any further documents
for its proposal. No response or inadequate response to the clarifications asked for may lead to the
disqualification of the bidder.
8.7 EVALUATION OF THE PROPOSALS
Preliminary Scrutiny:
Preliminary scrutiny of the technical proposal will be made to determine whether they are
complete, whether the documents have been properly signed, and whether the bids are
generally in order. Bids not conforming to such preliminary requirements will be prima facie
rejected.
Fulfillment of Minimum Qualification Criteria:
The proposals will be examined to ascertain whether they fulfill the minimum qualification
criteria as prescribed in Clause 7. The proposals of those applicants who do not fulfill
minimum qualification criteria shall not be taken into further consideration/ detailed evaluation.
Waivers:
MPMKVVCL shall waive minor infirmity; nonconformity or irregularity in a proposal, which
does not constitute a material deviation, provided such waiver does not prejudice or affect the
relative ranking of any Applicant.
Detailed Evaluation of Technical Proposals:
Bids found to be substantially responsive after the preliminary scrutiny and fulfillment of the
minimum qualification criteria will be taken up for detailed evaluation. Criteria for evaluation
of technical have been specified in Annexure 5 of this document.
Technically Qualified Applicants:
All the Applicants who fulfill minimum qualification criteria i.e. number of years of operation,
number of partners, turnover requirement and number of branches (Details in Annexure 5) will
be declared as technically qualified. The Financial Bids of only the technically qualified
Applicants will be opened for further processing.
8.8 EVALUATION OF THE FINANCIAL PROPOSAL
The Financial Proposal of the technically qualified Applicants will be opened.
9
Fixed Price Bids:
Only the fixed price financial proposal indicating Total Quoted Fees for the block period will be
considered. The price shall be inclusive of all T.A/ D.A., Lodging, Boarding, and out of pocket
expenses. GST as applicable will be paid extra. No payment other than this shall be paid for the
deliverables as specified in the tender document. Format for submission of financial proposal is in
Annexure 2.
Arithmetical errors will be rectified as follows:
If there is a discrepancy between words and figures, the amount in words will prevail. However,
if the amount quoted in words is not legible or not clear in meaning, the MPMKVVCL may
consider the amount quoted in figures as final. Such offers may also be rejected.
8.9 SELECTION PROCESS
The bidder who fulfills the minimum technical criteria whose financial proposal will be the
lowest for a particular Group, shall get selected for the appointment as the Internal Auditors of
the Group, subject to fulfillment of contractual formalities. In case two or more bidders quote the
same fees then those proposals where fees is quoted the same shall be further evaluated on
technical criteria and marks mentioned in Annexure -5 Bidders Background and Qualifications
Criteria for Technical Evaluation and the bidder who scores the maximum marks in the technical
criteria will be selected in such a case.
The selected bidder shall be issued a Letter of Award (LOA) by MPMKVVCL, Bhopal and, upon
acceptance of the LOA by such selected bidder, will be appointed as an Internal Auditor of the
Group.
The selected bidder shall accept the Letter of Award unconditionally, within fifteen (15) days
from the date of receipt of the LOA.
Upon acceptance of the LOA, the selected bidder shall be required to sign up an agreement with
MPMKVVCL on a non-judicial stamp paper of Rs. 500/-, at Bhopal within fifteen (15) days of
acceptance of LOA, containing overall terms and conditions which shall be binding on the firms.
Draft agreement shall be made available on the date of pre bid meeting. Cost of the stamp and
revenue stamp affixed on the agreement shall be borne by the applicant. MPMKVVCL, Bhopal
shall not reimburse these costs.
The selected bidder shall commence the work of Internal Audit as per the audit program issued by
MPMKVVCL, after the signing of the agreement.
The selected bidder shall not sublet the work of Internal Audit to any other party. Any violation
of this provision would make the contract liable for termination.
If the selected bidder:
o Fails to accept the LOA within the prescribed time;
o Fails to complete the contractual formalities within the stipulated time period; or
o Fails to commence the work as per the program.
10
Then in such cases, MPMKVVCL, Bhopal reserves the right to cancel the offer made to such
firm, forfeit its EMD and may also blacklist the bidder.
In such a situation, MPMKVVCL reserves the right to award the work of Internal Audit to the
next lowest evaluated bidder.
8.10 PROPOSAL CURRENCY
Prices shall be quoted in Indian Rupees only.
8.11 PERFORMANCE SECURITY
The successful bidder needs to submit a Performance Security equivalent to ten percent (10%) of the
Contract Value in the form of a bank guarantee or a DD drawn on a scheduled bank in favour of AO,
HOAU, MPMKVVCL, payable at Bhopal, within fifteen (15) days from the date of acceptance of the
LOA by the Successful Bidder which shall be refunded within one year after the successful completion
of the assignment. Format of Bank guarantee is annexed as Annexure 12.
Failure to commence the audit as per the audit program issued by MPMKVVCL shall entail the
forfeiture of performance security and cancellation of the LOA.
8.12 PRE BID CONFERENCE
Interested Bidders may attend the pre-bid conference on 11st Sept, 2018 at 15:00 Hrs (3:00 pm) at the
following address: Chief Finance Officer, O/o MD (CZ), MPMKVVCL, Nishtha Parisar,
Govindpura, Bhopal, for clarification of any doubts of the prospective bidders regarding the Tender
document. The prospective bidders may attend such meetings through their authorized representatives.
Those prospective bidders who may find themselves unable to attend the pre-bid clarification meeting
in person may send their queries either by post or by courier at the above mentioned address.
8.13 CLARIFICATION/ FURTHER INFORMATION
The Bidders may seek clarification on the tender document by making a request in writing, submitted
to the person addressed below, either in person, or through registered post / courier, or through email,
in the format prescribed in Annexure 7 till the last day of sale of the tender documents as per the
details provided below:
Designation : Chief Financial Officer
Address : O/o MD (CZ)
MPMKVVCL, Nishtha Parisar,
Govindpura, Bijli Nagar, Bhopal.
MPMKVVCL would duly acknowledge the queries received by post and provide response to the
clarifications sought by the prospective applicant at its discretion.
8.14 AMENDMENT TO THE TENDER DOCUMENT
At any time prior to the last date for sale of the tender document, MPMKVVCL, Bhopal may amend
the tender document by issuing necessary addendum. Addendum issued shall be part of the tender
document.
11
The addendum will be uploaded on the official website of the MPMKVVCL.
Such amendments, clarifications, etc. shall be binding on the Bidders and will be given due
consideration by the Bidders while they submit their Bid.
In order to give Bidders reasonable time to take the above amendments into account in preparing their
Bid, MPMKVVCL may, at its discretion, extend the Bid Deadline.
8.15 RIGHT TO ACCEPT/REJECT ANY OR ALL BIDS
MPMKVVCL, Bhopal reserves the right to accept or reject any or all the proposals, or cancel the
bidding process and reject all the proposals at any time prior to the award of contract, without thereby
incurring any liability to the affected bidders or any obligation to inform the affected bidders of the
grounds of such action.
8.16 ASSOCIATION WITH INDIVIDUAL CONSULTANTS
The Bidders may associate individual consultants for the technical guidance in the field or for any
other specialized work, if required and a copy of the agreement to the effect defining the scope of work
etc. should be submitted along with the application. The cost of the hiring the individual consultants
shall be borne by the bidder himself, MPMKVVCL, Bhopal shall not be liable for any work of the
consultant during the course of audit.
8.17 COMMENCEMENT OF SERVICES
After signing the agreement the selected bidders shall commence the performance of services as per
the program issued by MPMKVVCL.
8.18 CO-ORDINATION AND FOLLOW UP OF AUDIT WORK
Additional Director (F&A)/ DGM (Audit) O/o MD (CZ) MPMKVVCL, Bhopal will be In-charge
of co-ordination of audit work. The successful bidder, after award of work is required to approach the
officer concerned on all matters for smooth and effective conduct of audit. The term coordination
covers the entire gamut of activities viz., finalization of audit programme, discussions and acceptance
of deliverables, settlement of payment, dispute resolution as per the contract terms etc.
8.19 SUSPENSION OF SERVICES
MPMKVVCL, Bhopal reserves the right to suspend the selected bidder by a written notice and
suspend all payments to the selected bidder, if the selected bidder fails to perform their obligation in
the assignment.
8.20 PAYMENT SCHEDULE/ PROCEDURE FOR RELEASING OF THE FEES:
The payment to the Internal Auditors at the Circle Level shall be made by the Chief Finance Officer,
MPMKVVCL, Bhopal.
Payment Schedule for the Audit Fees:
o The bills will be submitted quarterly as per the audit program issued by MPMKVVCL along
with the certificate of completion as annexed in Annexure 11. After submission of the same,
80% payment of the bill will be made after deducting all mandatory taxes which will be
based on the following:-
12
A copy of all reports along with All Certificates of completion of internal audit as
annexed in Annexure 11 along with the invoice.
o The balance 20% of the fees may be released within three months from the date of the
payment released as above.
o The "date of completion" shall be reckoned from the date of submission of final audit report
to Internal Audit Department, O/o MD, MPMKVVCL, Bhopal
o No interest, claim or penalty etc. would be payable by MPMKVVCL in case of any delay in
payment beyond stipulated time.
o Advance of Rs. 1,00,000/- (One Lakh) or 25% of the estimated bill for the first quarter,
whichever is lower may be given to the Internal Auditors subject to submission of Bank
Guarantee of the equivalent amount valid for one year and may be renewed if required. The
advance shall be adjusted with the payment of the first bill submitted by the Internal Auditor.
Also, the bank guarantee shall be released after complete adjustment of the advance amount
paid.
8.21 SUBMISSION OF BILLS
The payment as per payment terms above shall be released by the Dy. General Manager
(CBPU), O/o MD MPMKVVCL Bhopal within reasonable time from the date of receipt of the
bill or as per queue whichever is later. The bill should be submitted as per following instructions:
o The bill should be submitted in triplicate to Chief Finance Officer O/o MD MPMKVVCL.
Bhopal with the Annexure 11 in soft & hard copy.
o The bill should be submitted on quarterly basis, at the end of the quarter for all the reports
submitted during that quarter.
o If CA Firm fails to perform the audit of any office as per the scheduled programme, the list of
such offices should be separately enclosed along with the bill.
After satisfactory completion of the work, the bill shall be passed and forwarded to the Dy.
General Manager (CBPU), MPMKVVCL, for pre-auditing the bill and arranging payments
within reasonable time as per queue.
8.22 PENALTY
If the Internal Auditor firm or partner thereof is found guilty of gross negligence, lack of duty of
care, misrepresentation and misstatement of facts, hiding the facts, falsification, using or giving
the details gathered during the audit assignment to other parties without permission of the
competent authority, non-observation of instructions given by the competent authority,
unauthorized retention of records of the Company, violating the terms and conditions of this
assignment, un authorized changes in the records of the Company, including malafied practices
or any other cognizable offence or breach, the Internal Auditor firm will be punishable with any
or all following consequences:
13
a. Removal from the assignment of internal audit with immediate effect/ from the date
specified.
b. Removal from any other assignment with immediate effect/ from the date specified given
by the competent authority.
c. Ban from accepting the future assignment of the Company for the period as specified.
d. Any other action deemed appropriate by the competent authority.
Penalty for Delay in Completion of work as per Schedule:
o If the work is not completed within stipulated time by the bidder (i.e. as per the audit program
issued by MPMKVVCL) and thereafter submission of report within 15 days, then penalty
shall be imposed @ 0.5% per week or part thereof subject to maximum of @ 10% of total
fees from the due date of submission of report.
However, in the event of non-completion of the work in the stipulated time period due to
unforeseen conditions, the auditor firm will be required to apply for grant of additional time
period. Request of extension of time period desired by the auditor firm shall be considered
only if reasonable and justified ground exists at the sole discretion of Chief Finance Officer
MPMKVVCL, Bhopal.
o If the bidder is unable to complete the work and also not able to justify the ground of non-
completion of the work within the stipulated time period, then it may lead the contract liable
to be terminated.
8.23 PERFORMANCE STANDARDS
The auditor shall be responsible for the completion of audit for all the offices as per the Scope of
Work in the tender Document.
The Auditor shall follow all SIA (Standards of Internal Audit).
The auditor is expected to apply reasonable degree of care and diligence while performing the
audit. He should ensure that the work is progressing and being performed in compliance with the
agreement.
In case of any negligence found on the part of auditor , or the work is not carried out in
accordance with the terms & conditions of the tender or scope of work is not adhered to by the
auditor, MPMKVVCL reserves the rights to reject the audit report and to deduct a suitable
amount from audit fees/incentives payable to auditor. The Performance review parameters as
laid down in Annexure 10 shall form the basis of determination of the performance standard of
the Auditors, but MPMKVVCLs decision shall be final in this regard. However, such deduction
shall not exceed the amount of audit fees to the auditor firm.
Substantial Failure of the selected bidder to perform the agreement may even cause to terminate
the agreement. In this event, the Company may require the bidder to reimburse the monies paid
(based on the identified portion of the unacceptable work received) and shall seek charges for
associated damages.
14
8.24 ESCALATION
No escalation charges or additional amount whatsoever shall be paid to the selected bidders.
8.25 DISPUTES
The following clause titled ,,Disputes shall be a part of the agreement to be entered into with the
respective selected bidders for each group. This Clause does not prevent either party commencing or
pursuing court proceedings to protect the rights of confidentiality and in respect of the Confidential
Information of that party.
In the event of any dispute or difference arising between the parties, relating to the scope of work,
meaning or effect of the Agreement or any other clause or in respect of the rights and liabilities of the
parties or other matters specified therein or with reference to anything arising out of or incidental to
this agreement or otherwise in relation to the terms, whether during the continuance of this agreement
or thereafter, such disputes or differences shall be endeavored to be solved by mutual discussions.
In the first instance, the Dispute will be referred to the Chief Finance Officer for resolution;
if the Chief Finance Officer cannot resolve the Dispute within 15 Business Days (or such other
period as may be agreed between the parties), the Dispute will then be escalated to the MD
(MPMKVVCL)
For the avoidance of any doubt, any communication between the parties arising out of or in connection
with the above procedure will be without prejudice and will be treated as confidential.
9. SCOPE OF WORK
9.1 BACKGROUND
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited, with its office at
Nishtha Parisar, Govindpura, Bhopal is a Power Distribution Company incorporated under the
provisions of the Companies Act, 1956 (now Companies Act 2013) and is a Government of Madhya
Pradesh Undertaking, post un-bundling of Madhya Pradesh State Electricity Board in 2005, as a part
of the MP power sector reforms. The scope of work of the Company includes:
Distribution of electricity to retail consumers;
Compliance of requirements provided under provisions, regulations, notifications, clarification,
etc. issued or notified by Madhya Pradesh Electricity Regulatory Commission (MPERC);
Operation and Maintenance of distribution system;
Billing to retail consumers and collection of revenue from retail consumers;
Capital investment for improvement and capacity enhancement of distribution system.
The Management of the Company intends to appoint Internal Auditors, by engaging the Firms of
Chartered Accountants with a view to bring in a professional approach in the Internal Audit of the Power
Distribution business in Madhya Pradesh.
15
MPMKVVCL, Bhopal has adopted the ERP System for maintaining the books of accounts. Audit
Module for the same is in the development phase. The Internal Auditor shall abide by the System,
upload all the audit reports on the system and comply with all other requirements of the same as a part of
its Scope of Work as and when the same will be finalized.
9.2 ORGANISATION STRUCTURE
The Company is engaged in the distribution & retail supply of electricity to its consumers through 2
regional offices, 15 Circles and 49 divisions. There are about 345 Distribution centers in the specified
area. Its Organization Structure flows as below:
MPMKVVCL, Division Sub Division
Region Office Circle Offices Zones/ D.C.s
Bhopal Offices Offices
List of Offices are enclosed in Annexure 1.
9.3 OFFICES FOR INTERNAL AUDIT
Appointment of Internal Auditors:
The Company desires to engage reputed Chartered Accountant firms, as Internal Auditors at the
Circle Level. A firm of Chartered Accountant shall be appointed for each Group, which shall be
responsible for the Internal Audit of all the listed Offices as per the Scope of Work within the
Group for a block period i.e. for FY 2015-16 to FY 2017-18 (Revenue audit), FY 2016-17 to
FY 2017-18 (System & Exp. Audit), FY 2018-19 (Books of Accounts Audit) and March 2019
for Physical Verification of Area Store.
Frequency of Audit of Offices:
For all offices operating under the Group of which the CA firm is appointed as the Internal
Auditor shall be required to be audited as per the Scope of work and TOR of the tender
document. The Internal Auditor shall carry out internal audit as per the following scope of all the
offices in the Circle Office(s):
S. Periodicity/ No. Of Days of audit
Scope of Work Name of Offices
No. Audit period (mandatory)*
Block period from
H.T. Audit 3 days per 25
1. RAO Offices FY 2015-16 to
(100%) consumers
FY 2017-18
All the Zonal Offices/ Block period from
L.T. Revenue
2. Distribution Centres FY 2015-16 to 10 days
Audit
at the Circle Level FY 2017-18
Divisions, Circle, Block period from
Internal Audit of
3. RAO and Region FY 2016-17 to 1 week
System and Exp.
Offices FY 2017-18
Physical
4. Verification of Area Store Once 10 days
Store
16
S. Periodicity/ No. Of Days of audit
Scope of Work Name of Offices
No. Audit period (mandatory)*
Internal Audit of
Quarterly Basis
5. Books of RAO Offices 1 week
FY 2018-19
Accounts
*The number of days of audit are the mandatory number of days an audit team shall require to audit the
Office as per the Scope of work.
9.4 STRUCTURE OF AUDIT PARTY
The selected bidder shall be required to depute the audit teams for the audit of Auditee Offices,
covering the entire scope of audit. An audit team/party consist one (1) Audit Officer and two (2)
to three (3) Audit Assistants.
The Audit Officer shall have any of the following as minimum qualification
C.A. with at least two (2) years of experience;
OR
C.A. (Inter) with at least five (5) years of experience;
(Number of years of experience will be considered from the date of issuance of mark sheet)
The Audit assistants (2 to 3 in number) shall be articled assistants with at least 1 year of
experience or B.com/M.com with First Division and having at least 1 year of experience.
Minimum two (2) Audit teams need to be deployed by the selected bidder at the same time
to complete the audit assignment of all the Auditee Offices of the Circle within the
prescribed time schedule. The said clause is applicable for group A to H only.
All the documents of the audit team verifying their educational background like mark sheets,
certificates etc. will be verified by the Company. The audit team of the selected Bidder form shall
carry original and duplicate copy of their certificates.
Along with the Audit team as mentioned above, the Bidder shall have a Team leader who
should be a Fellow Chartered Accountant (FCA) responsible for the supervision and overall
monitoring of the team.
o It shall arrange all necessary information for the audit team from time to time.
o Effectively supervise and control the audit.
o Effectively discuss the audit points with the Officer-In-charge and obtain detailed and
meaningful explanation.
o Ensure the work shall be as per the Scope of Internal Audit and completion of the Audit as
per the schedule.
The appointment of the Audit team and the team Leader shall be made on the basis of the
credentials, experience and capability as furnished by the participating firm for the purpose of
evaluation along with the technical proposal.
17
9.5 MANDATES FOR THE BIDDER
The bidder shall assure that there should be no change in audit officer except for unavoidable
circumstances like resignation etc. to ensure proper flow of work.
Identity card will be issued to the team members of the selected bidder by MPMKVVCL, Bhopal.
The cost of the identity card will be borne by the MPMKVVCL for the initial audit team and if there
are any changes in the audit team afterwards or in case of loss of the card, a fee of Rs. 100 will be
charged for issue/reissue of card. The identity card will be issued after verification of documents.
9.6 TERMS AND CONDITIONS
The Team leader shall mandatorily be present in all meetings and discussions for Circle and
Division. Also the selected bidder shall take time from the Discom Officials at least 3 days before
the meeting.
The selected bidder shall report to the management of the Company if required, during the tenure
and execution of the work.
During the course of audit there shall be regular meetings once in a month between the
management of the Company and the senior partners of the firm to discuss and review upon the
issues.
The selected bidder shall be required to report the outcome of their activities to the Chief Finance
Officer.
The selected bidder shall maintain a record of the activities being undertaken by them during the
course of the Internal Audit of the Auditee Office. A summary of the work undertaken, completed
and items pending shall be submitted to the Chief Finance Officer at the end of audit of each
Auditee Office. This shall also form basis for the performance review of the bidder. Such record
should be readily available for inspection at all times.
The selected bidder will be authorized to review all areas of the organization and shall have
full and free access to all activities, records, property and personnel of the organization.
The selected bidder should be responsible for periodically evaluating the adequacy and
effectiveness of the system of internal control and the quality of performance in carrying out
assigned responsibilities throughout the Company.
The selected bidder shall be obliged to maintain complete secrecy and not to disclose any matter
which comes to its knowledge while conducting Internal Audit, to any third party, which may
affect the interest of the Company adversely.
It may be ensured that this assignment is carried out only through employees of participating
firm. If it comes to our notice that the assignment has been carried out by any other firm/persons,
the appointment is liable to be cancelled.
The selected bidder shall be responsible for data collection for the purpose of Audit. It should
ensure that the data collected and analyzed justifies the findings and recommendations as
provided by the auditor.
18
The selected bidder shall ensure the adequacy and effectiveness of the Companys system of
Internal Controls, any deficiency in the controls and other procedures to ensure the same should
be bought to the knowledge of the senior management along with necessary steps to be taken to
rectify the same.
The above conditions are not exhaustive. The Company will have absolute right to
revise/abrogate/include any conditions as per its best requirement.
9.7 OFFICE SPACE AND STATIONERY
The Company shall provide all sitting arrangements including furniture and office equipment,
stationery etc. free of cost to the auditors for its bona-fide use only.
9.8 PERIODIC ASSESSMENT
The authorized person of the Company shall periodically assess whether the purpose, authority and
responsibility, as defined in this charter, continue to be adequate to enable the internal audit function
to accomplish its objectives. The changes, if any, required will be communicated to the auditors. Also,
the periodic review meet may be held at the Head Office of the Company with the Internal Auditors,
and the Auditors shall have to attend the same without any extra remuneration.
The Company also reserves the right to issue fresh guidelines/revise the scope of work for the audit
and the internal auditor shall have to abide by the same.
The Company also reserves the right to supervise the audit by surprise visit and audit party shall
explain the audit procedures and finding if asked for during the course of visit or even before and after.
However, if during the surprise visit the audit team is not found at the place of audit or the structure of
audit team is not as per the said terms and conditions or the audit is not found to be carried out as per
the scope of work defined, then in this situation the Internal Auditor may either be penalized @ 10 %
of the fees of the respective Auditee Office or may be terminated based on the assessment of the
authorized person during the visit.
9.9 CONFIDENTIALITY
The internal auditors their sub-consultants, individual consultants, partners of either of them shall treat
confidential information as confidential and shall not disclose any proprietary or confidential
information which comes to its knowledge while conducting Internal Audit to any third party without
prior written consent of the competent authority of the Company. He shall undertake to effect and
maintain the same adequate security measures to safeguard the confidential information from
unauthorized access, use and misappropriation.
All reports and other documents submitted by internal auditor shall not later than upon termination or
expiration of this assignment, deliver all such documents and reports to the competent authority
together with a detail inventory thereof. The internal auditor may remain a copy of such report and
documents but shall not use these reports and documents for purpose unrelated to this assignment
without prior written consent of the competent authority of the Company.
The internal auditor has to undertake that all knowledge and information not within the public domain
which may be acquired during the execution of the assignment shall be for all time and for all purpose,
regarded as strictly confidential and held in confidence and shall not be directly disclosed to any
19
person whatsoever, except with the prior written permission of the competent authority of the
Company.
9.10 TERMS OF REPORTING
Deliverables:
Reporting and Deliverables shall form an important part of this assignment. Following points
shall be considered:
o One composite Internal Audit Report shall be prepared covering all the aspects
covered/ taken up during the Audit in different sections. Thus in one visit to an Auditee
Office, the Audit for the particular year will be taken up and completed in all respects.
The format for composite audit report is annexed in Annexure 8.
o Without prejudice to the extent and scope of the services, Test Audit Report (TAR),
Test Audit Note (TAN) and Half Margin of each Auditee Office audited shall be the
key deliverable.
o As soon as the audit of an Auditee Office is completed the TAR, TAN should be
prepared. The TAR and TAN along with the Annexure 11, Half Margins and all other
related details shall be submitted to the Chief Finance Officer, O/o MD (CZ),
MPMKVVCL, Bhopal in Soft copy. Hard Copy of the report shall be submitted to
the Officer In-charge of the Auditee Office with a copy to the O/o MD,
MPMKVVCL, Bhopal.
o MPMKVVCL, Bhopal has adopted the ERP System for maintaining the books of
accounts. Audit Module for the same is in the development phase. The Internal Auditor
shall abide by the System, upload all the audit reports on the system and comply with all
other requirements of the same as a part of its Scope of Work as and when the same will
be finalized.
Any Internal Audit Report shall be sealed and signed by the any Partner of the Consortium
Leader Firm only. Any report/ correspondence by any other firm which is signed or sealed by any
other firm shall not be entertained by MPMKVVCL, Bhopal
The Reports shall be submitted in soft and hard copy within 15 days from the date
of completion of the audit of an Auditee Office. The report shall be provided by an
authorised person in designated email of Auditee Office and email id of corporate
office i.e. mpcz.audit@gmail.com at the same time.
Terms of Reporting:
o The Auditee shall be submitting their yearly action plan to the Bidder for the Audit of
each Circle of the Group as per the Scope of Work mentioned in the document falling
under his purview as Internal Auditor.
o Non-cooperation at any point of time during the audit tenure shall be bought to the notice
of the General Manager/ S.E. of the Circle Offices for immediate action in verbal as well
as in writing.
20
o However, if no action is taken by the General Manager/ S.E. of the respective Circle to
resolve the issue, the same shall be bought to the notice of the Chief Finance Officer
confidentially.
o The Audit Party shall have visit mandatorily the Auditee Office during office hours for
the Internal Audit as per the schedule for a minimum number of days as prescribed.
o The Team Leader shall be responsible for the supervision and satisfactory completion of
the internal audit of the Company.
o The Audit shall be completed in the prescribed time schedule. However in the event of
non-completion of the work in the stipulated time period due to unforeseen conditions,
the auditor firm will be required to apply for grant of additional time period. Request of
extension of time period desired by the auditor firm shall be considered only if reasonable
and justified ground exists at the sole discretion of Chief Finance Officer MPMKVVCL,
Bhopal
9.11 SCOPE OF WORK
The revenue collection efficiency of the Company is 91%. There is a tariff mechanism to raise demand
on HT consumers on a monthly basis as per the consumption recorded. The Company compiles the
monthly data in the form of R-15. At present the Company has CCNB and RMS billing software in all
Accounting Units (RAOs).
The selected bidder is required to exercise such tests of accounting records, internal checks and control
and other necessary audit of the accounts as per general principles and standard of audits (SIA) of the
Institute of Chartered Accountants of India. In conducting the Audit the Internal Audit Manual of the
Company should also be referred. The Auditor should pay attention to the following areas while
auditing:
The Scope has been classified into following:
Internal Audit of System and Expenditure: For the Block period under audit at all Division
Offices and Circle Office.
Revenue Audit of LT Consumer Accounts: For the Block period under audit at DCs / Zonal
Offices
Revenue Audit of HT Consumers: For the Block period under audit at RAO Offices.
Verification of Stores: Yearly.
Internal Audit of Books of Accounts: Quarterly at all the RAO Offices.
The Auditor should submit a Composite Internal Audit Report of System and expenditure audit of all
offices of the Circle as per the scope below. Further the Auditor needs to submit report of 100% HT
Revenue Audit at the Accounting Units of the Circle and LT Revenue audit for the D/Cs/ Zones.
The scope of auditor will also include:-
The auditor should try to identify wasteful expenditure is done, if any and report the same so that
suitable action can be taken. The auditor should also ascertain the utilization of capacity- both
21
physical and technical and if there are cases found for underutilization or wastage of resources
then this should be reported so that suitable remedial action can be taken.
Preparation of half margins in prescribed format for obtaining various information / records &
issuing the same to JE/AE officer in charge of Auditee Office and after receipt of the same,
carrying out the audit of the record and if any mistake is pointed out the half margin of audit
observation shall be issued for obtaining reply of JE/AE officer in charge of the Auditee Office.
If the officer in charge of the Auditee Office agreed with the observation pointed out, then this
will be treated as audit Para. If the Officer in charge of the Auditee Office does not agree with
the observation pointed out, then such Half Margins should be included under separate audit
Para giving remarks by the audit team.
A Test Audit Report (TAR) & Test Audit Note (TAN) shall be prepared including all audit Paras
in the prescribed Performa as per Annexure 11. If individual audit recovery of ` 1000/- or more
is pointed out it should be covered under TAR and If individual audit recovery is less than `
1000/- it should be covered under TAN.
After completion of internal audit of a DC/Zone, the report for the same shall be submitted to
that office and an acknowledgement of the submission shall be taken from office in charge. At
the same time, a copy of the report shall also be submitted to the concerned division.
After completion of internal audit of all DCs/Zones under a particular division, System &
expenditure Audit of that division will be started and at the same time a discussion on the reports
of DCs/ Zones shall be done with the Division in charge. A summary report of discussion
along with certificate of Division in charge shall be submitted by the bidder along with the
invoice.
It is however emphasized that the coverage in the scope of services as indicated above and detailed below
is indicative and not exhaustive. The Auditor shall also necessarily refer to the existing Internal Audit
Manual and its amendments from time to time to decide on the scope of work for the Auditee Offices.
The scope can also be decided with discussion with the Internal Auditor at the Corporate Office.
Apart from the audit observations, auditor will be required to indicate discrepancies / inadequacies in the
system or procedures so as to initiate steps for improving the system and making it more efficient. The
audit team will also be required to educate the dealing staff so as to avoid repetition of routine procedural
/ technical errors.
Further all other incidental / necessary activities for the completion of audit & resolution of matters
arising during the audit shall deem to be included in the scope of services. In case of judicial
proceeding(s) initiated by Discom pursuant to the audit for the period, the auditor shall reasonably assist
the Discom office by acting as a witness and providing evidences required as related thereto.
22
9.12 SCOPE OF EXPENDITURE AND SYSTEM AUDIT:
Expenditure Audit shall cover all the Circles along with the Divisions/ Sub- Divisions / D/Cs under
them and all other offices incurring expenditure.
Broadly it shall cover the following:
Capital Expenditure
Payrolls, P.F. and other establishment Expenditure
Stores and Purchases
Claims against Third Parties i.e. Suppliers, Contractors, Transporters, Railways, etc.
Following are the broad areas of system and expenditure audit:
SANCTIONS & BUDGETS:
100% checking for the full period at the end of the Year, along with Administrative/ Financial
Approval, detailed estimation being technically sanctioned by the Competent Authority.
Sanctioned estimates to be verified with reference to latest District Schedule of Rates or Market
rates or Companys latest cost data.
Budget allocated to Circles as well as utilized by the concerned.
Excess spending over the budget allocation and Regularization of excesses.
CONTRACT AGREEMENTS/PRICE:
Checking Tender Registers, Contractors Bill Registers and even Registers containing
Registration of Contractors.
Competent Authority to sanction the Contract & amendments issued, if any, must contain his
approval.
Split up of contract to be within financial powers of field officers to be reviewed and
commented. Proper execution of contract, Levy of L.D. Review of arbitration cases.
WORK ORDER:
The Work Orders must have Administrative approval and Technical Sanction and the proposal
must be justified on the basis of Budgeted Provision.
Order for repairs for Transformers should be at Approved rates & Register of Bills with RA Bill
wise update position to be checked.
Reconciliation of the Works Register and the Works Register at the RAO Office.
Timely preparation of Completion Report based on the completion of the Work as per the Work
Order.
Check for updating of record of transformer failure, from the date of return from the field, issue
for repair to Repairers as per the allotment order under the RCA, inspection done to examine
23
feasibility for repair, estimation, stage inspection, clearance for repair, return of transformers
found uneconomical for repair, etc.
COMPUTATION & RECOVERY OF INTEREST ON INTEREST BEARINGADVANCES:
The recovery of Interest should be as per the requirements & rules of the Organization & must
be appropriately made, adequately secured & duly acknowledged.
Non-recoverability of both principal and interest to be verified/ reported.
Accounting Statement of such unrecoverable advances and interest to be verified and reported.
PURCHASE ORDER:
The orders placed by the Circle & Division offices should be as per the Budget provision &
check should be kept on the items reserved for Corporate Office purchases.
Purchase should be as per DOP
Delay in supply and resultant recovery of L.D charges etc. should be checked and commented.
Waiver of L.D charges by Competent Authorities to be critically reviewed with reference to the
existing circumstances.
There should be a comparative price analysis review on the basis of Quotations & other price
information.
Distress purchase/ wrong intending/ Excess quantity procurement etc. should be reported.
REVIEW OF INSURANCE CLAIMS:
Reviews should be taken of the Claims lodged along with the Follow- up actions, its Settlement
& followed by proper Accounting Procedure.
Loss of insurance claims due to lack of procedures/processes to be reviewed/reported.
Timely submission of information should be verified.
CLOSURE OF CONTRACT:
The final bills to be settled as expeditiously as possible.
Delay to be reviewed. Delay in capitalization to be seen and reported.
Reasons for pending WCRs to be analyzed/reported.
ESTABLISHMENT- SALARIES & WAGES:
Test Checking of Pay Bills with reference to rules & Proprietary aspects- at least for a month in
every phase of Internal Audit.
Verification of Wage Sheets, Attendance Records- particularly of Leave Salary/ OT & other
Allowances & Accounting of leave records at least for a month in the phase of Internal Audit.
Increments, revisions and Grade fixation etc. to be verified.
100% checking of Payment of Pension, Gratuity & Other Retirement Benefits, Statutory
Deductions & their timely deposits.
24
Calculation & Accounting of Interest on Loans & Advances & its recovery as per applicable
rules.
Contract employees payment to be audited to see ,,ghost works
Allotment of quarters for emergency staff to be checked.
Proper transfer of employees from one division to another.
FIXED ASSETS & CAPITAL WORK IN PROGRESS:
100% checking of Capital Expenditure with reference to proper sanction of Competent
Authority.
Accounting of Fixed Assets, Depreciation & Capital WIP.
Checking of works completed but not transferred to fixed assets.
Delay in finalization of final bills.
Review of Fixed Assets Register.
Review of DPR and non-DPR capital works.
Review of loan tie up and loan servicing for capital works.
Review physical progress and financial progress in projects.
Review of delay in completion of project formalities.
Review of payment of commitment charges, if any.
Review of Capital items financed out of internal resources when loan tie up was possible.
STORES & MATERIAL ACCOUNTING:
Checking receipts, acceptances & issue of Material and their Reconciliation & Accounting, at all
stores.
Non- Moving /Slow Moving items to be brought to the notice of management.
Release of stores Receipt notes, acceptance of material after test results etc. to be checked.
Review of sale of scrap / utilization of slow moving items and verify the accounting of the same.
Verify the pricing aspect in GRN according to ESAAR, 1985
CASH AND BANK:
Verification of Cash, Cash Book & its Auditing.
Bank reconciliation.
Accounting of Stale Cheques.
Dishonor of Cheques. Action under Section 138 of Negotiable Instruments Act, 1938.
25
STATUTORY COMPLIANCES:
Violation of TDS at the time of payment towards Rent, Consultancy charges, Professional fees,
etc.
Appropriate recovery towards WCT, IT, VAT etc. and its timely, payment.
Claiming VAT set off (input credit).
Violations of any other law e.g. non-payment of wages as per minimum wages Act, ESI recovery
& timely remitting of P.F by contractors for which Company is responsible as a Principal
Employer.
Recovery of Service Tax.
Attending meeting with Statutory Auditors as & when required.
Physical presence of Internal Auditors at the time of annual inventory. You have to give your
comments and be a party to sign the verification report. You can suggest the methods/procedures
to improve upon current practices of inventory verification.
Is there an adequate internal control procedure commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed assets and for the sale. Whether
there is a continuing failure to correct major weaknesses in internal control. This would be in
compliance to clause No. 4 (IV) of Companies (Auditors Report) order, 2003.
Comments on compliance report submitted by the individual office for previous Internal Audit
Report.
Auditors shall also attend to any other work specifically assigned by the Management or
commented by the statutory auditors in their report (CARO) regarding Internal Audit.
Compliance of MPERC regulations.
FRANCHISEE AUDIT:
If any franchisee is operational in any Circle/ Division, detailed audit of the billing to franchisee
is to be done.
The terms and condition of the Franchisee Contract are followed; the billing is as per the contract
etc.
Any penalties or incentives are as per the contract.
OTHER ISSUES :
Online New Service Connection : Newly introduced facility of online application for New
Service Connection has been recently made available for HT consumers . At the time of visit to
the concerned office in addition to the routine audit work , audit to be held of the New Service
Connections taken prior to the date of audit to ensure that this facility is working smoothly in the
field .
26
SUGGESTIONS/ RECOMMENDATIONS FOR ENHANCING OVERALL/ INTEGRATED
EFFICIENCY:
Analysis of risk in technical as well as financial ones. Internal control with reference to existing
risk.
Any ,,whistle blowers found in the course of audit to point towards ,,fraud in the transaction
during any time.
9.13 SCOPE OF LT REVENUE AUDIT
LT Revenue comprises around 63.5% of the Revenue of MPMKVVCL. The L.T. Revenue Audit is to
be carried at all D.C.s / Zonal Offices of the Circle as per the Scope of Work in the Tender document.
The Internal Auditor needs to carry out Revenue audit for the D/Cs / Zones. Since the period
for which LT revenue audit is to be undertaken has already ended, therefore audit for the block
period of three financial years can be undertaken in continuation.
Objective of Revenue Audit
Enhancement of Companies revenue by prevention/ correction of noted instances of revenue
leakage.
Testing compliance of units to set rules and procedures relating to various facets of operation.
Transactions are executed in accordance with general orders and guidelines.
All transactions are promptly recorded in the correct amount in the appropriate books of entry
and in the correct accounting period.
Assets mainly cash; is safeguarded from unauthorized access, use and disposition.
The Internal Audit Manual of the Company should be referred for conducting the Revenue
Audit of the D/Cs. However, the following areas should be covered in the Audit Report.
Checking of Classified Abstract Collection (CAC)/Cash Remittance Advice (CRA).This shall include
checking of following:-
Records of CAC shall be checked thoroughly with counter foil / stub of energy bill available in
distribution center;
Postings from MR (Money Receipt) to CAC (in cases as applicable) and whether the receipts as
stated in the CAC are continuous;
Legitimate utilization of MR and control on stock of unused MR.
Any over writing and corrections made in CAC from counter foil of that particular bill are duly
authorized;
Payments received by Cheques/drafts etc. are properly entered in the prescribed register. Further
entries in register are attested by officer in-charge of the Distribution center and have been duly
entered in CAC;
27
Sum totals of each CAC are correct and CRA are prepared as per CAC;
CAC, being regularly checked by the clerk concerned is initialed by the Assistant Engineer, is
closed every evening and the total receipts of the day are transferred to the Main Cash Book, the
same evening. In case of defaults indicate the date from when to when it has not been checked
and the names of the defaulting clerks;
Reconciliation of CAC with consumers ledgers ;
That the realizations required to be deposited in bank have been routed through the CRA and that
CRA has duly been signed by the depositor;
Reconciliation of amount remitted into Bank during the particular month with the bank
statements;
Reconciliation of online payments made by consumers with the MIS provided by the service
provider and MIS generated through billing system.
Time taken by distribution center in submitting CRA to RAO. Reasons for delay, explanations of
the staff, etc. shall be analyzed and included in the report.
Adjustment made through CCB/CC4/CC7
All cases of adjustment made to the consumers accounts are required to be chec ked thoroughly
from CCB/CC4/CC7, including Interest on consumer deposits. Cases of discrepancies found
shall be included in the report.
Meter Reading Diary
Checking whether Meter Reading books are kept in a bound form for all the categories and
progress reports are received from Meter Readers monthly showing the number of meters
actually read by them;
Meter reading diaries have to be checked thoroughly, particularly for finding out the position of
stopped/defective meter. Further, action taken by the officers on observations of meter readers
and compliance to procedural requirements including Sample checking by AE/EE is also
required to be verified and commented upon;
Assessment of units and its reasonability shall also be checked on sample basis. This shall
include verifying whether the units consumed during a particular billing period are showing
substantial difference against the units consumed in the earlier period and the connect load;
For new connections check whether the first bill is issued in compliance to the procedure as
prescribed thereof.
28
Audit of billing operation
Assess regularity in Billing process including Meter reading and Billing Programme;
Assess adherence to Billing Programme and report the deviations;
Report cases of delay in issue of bills and the details thereof including:
Category of consumer or ledger number;
Months in which bills were required to be issued;
Months in which bills were actually issued;
Name of the defaulting ledger keeper and checking clerk.
Domestic consumers
At least records of 10% consumers from consumer ledgers and meter diaries are to be checked
thoroughly for analyzing the following:
Consumption pattern;
Working condition of meters;
Sanctioned load etc.
Commercial consumers
Records of 100% consumers are to be checked thoroughly as similar to work done in case of
Domestic consumers.
LT Industries
Records of 100% consumers are to be checked thoroughly as similar to work done in case of
Domestic consumers.
New Connection Register
Records of 50% new connections provided during the period shall be checked on random basis for
the following:
Whether all charges as per applicable rules have been recovered from the consumers;
Analyze the average time taken for providing new connections;
Whether all connections released are put on billing cycle timely.
Temporary Connection Register
Records of 100% temporary connections shall be checked for the following:
Check temporary connection register regarding compliance to rules prescribed for the same.
Check accuracy of tariff rates and the billing done for temporary connections.
29
Report on trend for number of temporary connections and collection of amount billed. Also
compare with their number during previous period and comment on deviation against expected
number for the current period.
Street lighting installations
Records of 25% street lighting installations shall be checked for the following:
To check whether the correct load and energy consumption are considered correctly for the
billing purpose.
To check whether the maintenance charges have been correctly calculated and billed.
To check that additional loads/installations serviced from time to time are correctly brought on to
the consumers ledgers and accordingly monthly demand is raised thereof.
To check whether the audit short claims, if any, are correctly demanded and collected.
Dishonored Cheques Register
To check whether the Dishonored Cheques register is properly maintained.
To check whether timely action has been taken for recovery of revenue including disconnection,
penalty and legal action besides ensuring that the consumer records/books of account are
updated immediately and intimated to the consumer for fresh payment along with surcharge and
bank charges.
To check whether necessary entries in RED INK are made in the receipt and payment sides of
the cash book as well as in the CAC and CRA of the day.
Cash & Bank
Physical Verification of cash in hand and reconciliation of the same with cash book, bank
balances and cash in transit.
Reconciliation of book balances with General Ledger & balance as per Bank Statement.
Verify accuracy and cutoff for cash transactions regarding recording of receipts in the same
accounting period in which they have been received.
Analysis of receivables
To check that defaulters list is being regularly received at the DC;
To check that status is being updated at the DC regarding defaulters and efforts made for
recovery, including service of notice for outstanding dues;
To check whether dates are indicated on which:
o Temporary disconnection orders are given effect to;
o Permanent disconnection orders are given effect to;
In case no such orders were implemented, ask reasons for the same;
Check whether list of defaulters is showing an increasing trend.
30
Check whether list for cases of permanent disconnections is prepared in compliance to
Electricity Supply code 2004 for submission to Commission.
To check whether outstanding charges/dues/amount of installment fixed along with
disconnection and reconnection charges as may be applicable, are received in case where
temporary disconnections been restored.
In case of temporary disconnections made at request received from the consumer check whether
all the monthly charges that are fixed in nature e.g. demand charge, minimum charge, meter rent
etc. have been received from the consumer in advance. Also check whether disconnection /
reconnections charges have been received from the consumer.
In case of disputed / erroneous bills check that adequate records are being maintained for status
of the dispute & its resolution. Also check on sample basis that in case the bill is found to be
erroneous and accordingly a revised bill has been issued, whether adjustment has duly been
made in the subsequent bill.
Audit of Expenses
Check whether schedule of authority is compiled to for sanction of expenses;
Check whether the expenses are adequately supported with evidence thereof;
Check whether proper accounting is done of expenses incurred & controls are monitored to
prevent payment being made for more than once;
To check that expenses incurred have been as per allocation made in the budget for the relevant
period. In other cases verify whether approval have duly been obtained;
To ensure that classification of expenses has been done under correct expense head;
To ensure that expenditure has been incurred with due regard to financial proprietary e.g.
supplies in excess of requirements have not been have not been obtained, the expenditure has
been incurred only for legitimate purposes etc.;
To ensure that expenditure has not been unnecessarily incurred to prevent the lapse of budget
allotment and the charges incurred during the year have not been met from the budget allotment
for the next year without approval of the competent authority.
Others
In case of seasonal consumers check whether the seasonal credit has been given correctly;
Check whether regularization has been done of anomalies pointed out by vigilance, periodic
inspection reports and other audits conducted;
Report on maintenance of records at DCs;
Checking compliance to tariff orders;
Study the abnormal/sub-normal consumption in respect of high revenue yielding installations &
report on the reasons for such variations;
31
Compare the consumption pattern of similar industries/installations to highlight possible loss of
revenue;
Compare the average billing rate of revenue of the DC as a whole with average billing rate for
each category of consumers. In case of average realization being significantly lesser than the
overall average realization rate of the sub-division (of that category), investigate the reasons for
the same and suggest remedial action, if any;
Compare the average consumption per installation of the DC as a whole with average
consumption for each category of consumers. In case of average consumption being significantly
lesser than the overall average consumption of the DC (of that category), investigate the reasons
for the same and suggest remedial action, if any;
Compare the average revenue billed per installation of the DC as a whole with average revenue
billed for each category of consumers. In case of average revenue billed being significantly
lesser than the overall average demand of the sub-division (of that category), investigate the
reasons for the same and suggest remedial action, if any;
Analyze the balances of receivables (arrears in terms of number of days of demand) for each
category of consumers and compare it individual with ledger balances. In case of large variations
in the level of receivables in respect of a particular ledger, investigate the reasons, and suggest
remedial action;
Verify the meter reading and billing efficiency. In case the percentage of meter reading and
billing is significantly lower, auditor should take immediate action to report the matter to the
administrative authorities for taking immediate appropriate action. While reporting the matter
auditor should quantify the loss of revenue on account of the above reason.
Verify the collection efficiency. In case the percentage of collection efficiency is significantly
lower as compared to the previous year, the auditor should report the matter to the administrative
authorities for taking immediate appropriate action.
Money receipt books have been handed over to line men w.e.f March 2016 for collection of
revenue from consumers along with their regular work. While auditors visit the field office for
doing their routine audit work , checks are to be done to verify that the total of all CAC issued
against a particular money receipt book matches with the grand total of the Money receipt book
and the revenue so collected is remitted by means of CRA. Also appropriate checks must be done
to ensure that no error / fraud is done while implementing this practice in the field.
9.14 SCOPE OF HT REVENUE AUDIT
High tension (HT) Revenue unit contribute huge chunk of revenue for the Company. The HT Billing
is done at the RAO (Accounting Unit) of the respective Circle. The Auditor has to verify 100% of the
Revenue from HT consumers.
Each HT consumer has executed a HT agreement with the Company. The Auditor has to read the
terms and conditions of the HT agreement.
32
Review of Internal Control
Ensure that the laid down system of Internal Control in properly implemented. Since the number of
consumers is low and the value of transactions is high there shall be a system of 100% verification in
almost all the activities. Further the Internal Check shall be more objective rather than the repetition of
the same Check.
Important features of HT Billing
Voltage of Supply
Contracted Maximum Demand / Recorded Maximum Demand
Load Factor (for the purpose of allowing Incentive to consumers)
Restriction on Lights and Fans Consumption
Billing of Colony consumption at a separate rate
Minimum off-take and Billing (in case of consumption less than specified level)
Import and Export of Electricity (in case of Billing of consumers having Captive Power Plants)
Important areas to focus
Check whether the tariff category and billing is done in line with the tariff policy as notified by
the regulator i.e. MPERC and its amendments from time to time.
Analysis of load and consumption pattern with last year and last six months in all cases and
reporting the reasons for changes
Check whether the meter readings in respect of the HT consumers are being taken jointly by the
Officer of the Company and representative of the consumer, on the fixed date as per the Billing
programme or not.
Check whether the copies of the meter readings are dispatched to the Regional Accounts Office
for the preparation of the Bills, and the receipt of the same is sent to the RAO and intimated
within 3 days of deposit by the consumer.
Check whether action for temporary disconnection to the consumer is issued in the event of
default of the payment of the bills on time by the consumer.
Ensure that the application of tariff is correct.
Verify the General terms and conditions of the tariff.
Correspondence with the consumer and Company is to be verified.
Ensure that the subsidy claim is correctly lodged.
In case of Increase / Decrease in Load whether supplementary agreement has been carried out.
Increase/ Decrease in Load and its impact on Billing
Termination of Agreement and sanction by competent authority
33
Lighting Load whether segregated or not?
Metering of Colony consumption.
Whether Security Deposit is as per the MPERC Regulations 2004 as amended from time to time.
Check on Test Basis whether Interest on Security Deposit as calculated by RMS is correct?
Check the Status of PDC, arrears adjustment, security deposit adjustment, actions taken for
recovery etc.
Levy of SLDC Charges in case of Persons operation Capital Power Plants (CPPs) and export of
energy to the DISCOM / State Grid.
Monthly Reconciliation of HT Revenue Receipt.
Check whether the adjustment and RPO compliance is well in place for open access consumers.
Check the electricity duty is calculated as per the provisions of the electricity Act.
Review of Agreements
Service Agreement with the consumer shall be reviewed at periodic intervals as there may be
changes in the business of the consumer or there may be changes in the Tariff conditions /
principles of categorization for Billing.
Citizen Charter as prescribed is followed and all commercial activities relating to issue of New
Service Connections, metering, meter reading, billing, collection, realizing bad debts,
disconnections, reconnections, customer complaint, vigilance checking, compounding, filling of
theft cases in special courts and follow up to be commented upon. In case of any adjustment
given in the bills against own generation of wind energy, verification of such calculation and
terms of PPA.
9.15 VERIFICATION OF STORES
The inventory in the Distribution Company includes the materials bought for capital works and
maintenance works. The peculiarity of some of the items of inventory is that they can be used for both
the Capital Works and Maintenance Works.
Scope of the Audit of the Stores and Pricing in the Stores includes (but not limited to):
Review of the Internal Controls in the Stores;
Audit of Pricing of Issues;
Review of valuation of Inter-store transfers;
Review of age-wise analysis;
Review of system of level of inventory;
Periodic physical verification of inventory.
Checklist:
Check whether initial records and other books of accounts are maintained properly;
34
Check whether the Requisition books are maintained properly and issued by the appropriate
authority;
Check whether the Stores accounts are closed on the prescribed dates of the month and recorded
in the accounts of the respective month;
Check whether the reconciliation of the quantities is done on a timely basis;
Check whether the priced stores ledger are maintained properly;
Check whether the Stores Issues are valued at the prescribed pricing method;
Check whether the monthly Stock balances are maintained as per the approved limits;
Verify whether the Stock reconciliation certificate is prepared on a monthly basis and actions
initiated in clearing the differences are taken:
o In respect of the excess and shortages the explanations of the departmental staff is obtained,
examined and approval of the officer concerned is available for the adjustments carried out in
the ledger;
o Check whether the adjustments have been made in the ledgers;
o Check for no fictitious adjustments made in the ledger.
Check whether the internal checks prescribed in the manual are conducted and registers for this
purpose are maintained;
9.16 INTERNAL AUDIT OF BOOKS OF ACCOUNTS AT RAO OFFICE
Scope of work as detailed hereunder is an attempt to outline road map in broad term with the objective
of management to ensure compliance to Generally Accepted Accounting Practices / Principles as well
as requirement of the Companies Act, 1956 (now Companies Act 2013) / Income Tax Act /
Accounting Standards published by the Institute of Chartered Accountants of India besides accounting
policies adhered to by the Company. This also includes timely reconciliation of various suspense
heads of accounts and maintenance of proper subsidiaries duly reconciled with the books of accounts.
The selected bidder shall work as facilitator for accomplishing the aforesaid objective and shall not
confine to reporting aspect only.
The main emphasis of the audit of the quarterly accounts of RAO(s) should be to ensure that:-
Accounting Standards issued by the ICAI are being followed keeping in view the accepted
accounting policies of the management
The monthly trial balances incorporating all advice of transfer debits / advice of transfer credits,
Inter Company Transactions, Store Issue Notes, Store Receipt Notes, DCB and other adjustment
vouchers are submitted timely and properly.
Reverse entries for outstanding liabilities have been passed at the beginning of the year.
The provisions, including provisions for outstanding liabilities, pension, gratuity, contributory
provident fund, NPS etc. are properly made and booked under proper head of accounts.
35
Pre-paid expenses are properly accounted for.
Credits on account of receipt against deposit works are transferred on completion of the work to
consumer contribution and debit under work in progress is transferred to fixed assets on the basis
of completion reports.
Advice of transfer Debits / Advice of transfer credits and Inter Company Transfer have been
originated well in time and are responded after due verification from the concerned timely.
T33here are no minus balances under any head of accounts and if existed, steps taken to clear
minus balances.
Party wise list of debtors / creditors.
All receipts and expenditure relating to the period have been properly booked under correct head
of accounts.
MIS & Accounts are tallying in respect of ED/Cess etc.
Proper and timely adjustments are being made in the books of accounts in respect of realization
by adjustment.
Year wise fixed asset-cum-depreciation register is prepared.
Stores ledger balances are tallying with the balances appearing in the books of accounts.
Valuation of closing stores inventory / scrap / obsolete / retrieved material and accounting
thereof should commensurate with the accounting as per AS read with accounting policies of the
Company.
All material issued for capital works should be booked under CWIP and proper monthly record
of CWIP scheme wise, estimate wise is prepared by accounting unit.
Capital works completed should be got transferred to fixed assets.
All pay orders relating to deduction at source viz. CPF / EPF / NPS / Income Tax / Service Tax /
WCT / Entry Tax etc. are sent within stipulated time period.
The outstanding observations of previous Statutory Auditors are cleared.
Required subsidiaries are properly maintained and reconciled with books of accounts.
Reconciliation of Bank Accounts, Transfer within Circle, Advances for O&M supplies,
Advances for Inter Unit Stores Account, liabilities of entry tax, liability for O&M supplies,
sundry debtors collection a/c, sundry debtors for sale of power, Net salary payable a/c, unpaid
salary a/c, bonus /ex-gratia and deduction at source viz. Income Tax, GPF, CPF, EPF, HPS, LIC
etc. are properly done and all should tally with the subsidiaries.
The Audit report should be prepared immediately after audit of trial balance of the RAO and
should be submitted to the Chief Finance Officer immediately.
36
10. MINIMUM FEES:
As required by the latest guideline issued by the Institute of Chartered Accountants of India,
there is a requirement to specify the minimum fees for the assignment in the tender itself then the
members may participate in the tendering process. Therefore the minimum fees for block period
for each of the group of work specified in Annexure 1 is as under :
1. For audit of all 48 offices in Group A (as per Annexure 1) Rs 15,60,000.
2. For audit of all 58 offices in Group B (as per Annexure 1) Rs 19,20,000.
3. For audit of all 78 offices in Group C (as per Annexure 1) Rs 26,00,000.
4. For audit of all 49 offices in Group D (as per Annexure 1) Rs 15,85,000.
5. For audit of all 44 offices in Group E (as per Annexure 1) Rs 14,20,000.
6. For audit of all 59 offices in Group F (as per Annexure 1) Rs 19,25,000.
7. For audit of all 66 offices in Group G (as per Annexure 1) Rs 21,80,000.
8. For audit of all 41 offices in Group H (as per Annexure 1) Rs 13,35,000.
9. For HT revenue audit of Group "I" (as per Annexure 1) Rs 21,37,000.
10. For HT revenue audit of Group "J" (as per Annexure 1) Rs 10,44,000.
Note:-
1. The minimum fees as mentioned above are exclusive of taxes. Bidder has to quote the fees
exclusive of taxes. The taxes as applicable will be paid extra by MPMKVVCL.
2. In case, apart from above offices any additional office is required to be audited, the same may be
awarded to the selected bidder for that Group after getting approval from order placing authority.
37
ANNEXURE -1
I. LIST OF GROUPS FOR WHICH BIDS ARE REQUIRED:
Group Region/ Circle Office
A Bhopal City Circle + O&M Circle Vidisha
B O&M Circle Sehore + O&M Circle Rajgarh
C O&M Circle Betul + O&M Circle Hoshangabad
D Bhopal Regional Office + O&M Circle Bhopal (Including Raisen Circle)
E Gwalior City Circle + O&M Circle Sheopur
F O&M Circle Morena + O&M Circle Bhind
G O&M Circle Guna + O&M Circle Shivpuri
H O&M Circle Gwalior + Gwalior Regional Office
I HT Revenue Audit Bhopal Region:-
(ii) City Circle Bhopal
(iii) O&M Circle Bhopal (Including Raisen Circle)
(iv) O&M Circle Sehore
(v) O&M Circle Rajgarh
(vi) O&M Circle Betul
(vii) O&M Circle Hoshangabad
(viii) O&M Circle Vidisha
J HT Revenue Audit Gwalior Region:-
(i) Gwalior City Circle
(ii) O&M Circle Gwalior
(iii) O&M Circle Bhind
(iv) O&M Circle Morena
(v) O&M Circle Guna
(vi) O&M Circle Shivpuri
(vii) O&M Circle Sheopur
II. LIST OF NUMBER OF OFFICES FOR THE ABOVE GROUPS A to H
Offices for
D/Cs Offices for System and Exp. Books Of Physical
Total
S. for L.T. Audit Accounts Verification
Region / Circle Office Audit
No. Rev.
Audit Division Circle
RAO RAO STORE Total
Off. Off.
1 City Circle Bhopal 23 4 1 1 1 30
2 O&M Circle Vidisha 13 2 1 1 1 18
Total Offices in Group A 36 6 2 2 2 0 48
1 O&M Circle Sehore 23 2 1 1 1 28
2 O&M Circle Rajgarh 24 3 1 1 1 30
Total Offices in Group B 47 5 2 2 2 0 58
1 O&M Circle Betul 30 3 1 1 1 36
2 O&M Circle Hbad 35 4 1 1 1 42
Total Offices in Group C 65 7 2 2 2 0 78
1 Bhopal Region Office - - 1 1 1 1 4
O&M circle Bhopal &
2 35 7 1 1 1 - 45
Raisen
38
Total Offices in Group D 35 7 2 2 2 1 49
1 City Circle Gwalior 18 4 1 1 1 -- 25
2 O&M Circle Sheopur 14 2 1 1 1 -- 19
Total Offices in Group E 32 6 2 2 2 0 44
1 O&M Circle Bhind 20 4 1 1 1 -- 27
2 O&M Circle Morena 25 4 1 1 1 -- 32
Total Offices in Group F 45 8 2 2 2 0 59
1 O&M Circle Guna 29 4 1 1 1 1 37
2 O&M Circle Shivpuri 23 3 1 1 1 -- 29
Total Offices in Group G 52 7 2 2 2 1 66
1 Gwalior Region Office - - 1 1 1 1 4
2 O&M circle Gwalior 30 4 1 1 1 - 37
Total Offices in Group H 30 4 2 2 2 1 41
A Total Offices(A to H) 342 50 16 16 16 3 443
III. OFFICES FOR "I" GROUP
S. No. Office for HT ,,Revenue Audit No. Of Consumers No. Of Consumer No. Of Consumer
(2015-16) (2016-17) (2017-18)
1. Accounting Unit City Circle Bhopal 649 657 668
2. Accounting Unit O&M Circle Bhopal 392 410 375
3. Accounting Unit O&M Circle Sehore 67 79 86
4. Accounting Unit O&M Circle Rajgarh 63 77 76
5. Accounting Unit O&M Circle Betul 55 59 62
6. Accounting Unit O&M Circle HBad 95 98 111
7. Accounting Unit O&M Circle Vidisha 39 44 51
8. Accounting Unit O&M Circle Raisen - - 61
Total 1360 1424 1490
IV. OFFICES FOR "J" GROUP
S. No. Office for HT ,,Revenue Audit No. Of Consumers No. Of Consumer No. Of Consumer
(2015-16) (2016-17) (2017-18)
1. Accounting Unit City Circle Gwalior 182 185 195
2. Accounting Unit O&M Circle Gwalior 206 217 237
3. Accounting Unit O&M Circle Morena 138 144 160
4. Accounting Unit O&M Circle Bhind 13 14 15
5. Accounting Unit O&M Circle Guna 76 82 91
6. Accounting Unit O&M Circle Shivpuri 35 35 45
7. Accounting Unit O&M Circle Sheopur 5 6 7
Total 655 683 750
Grand Total 2015 2107 2240
39
V. DETAILED LIST OF CIRCLEWISE DIVISIONWISE DISTRIBUTION CENTRES:
Region Circle Division S.Mo DC/Zone
1 AMBADA
2 AMLA RURAL
3 AMLA URBAN
4 BHIMPUR
5 BORDEHI
BETUL NORTH DVN
6 CHICHOLI
7 GHODA GONGRI
8 KHEDLI BAZAR
9 SARNI R & U
10 SHAHPUR
11 ATNAIR
12 BETUL BAZAR
13 BETUL RURAL
14 BETUL TOWN URBAN
15 BHAINSDEHI
BETUL CIR BETUL SOUTH DVN
16 JHALAR
17 KHEDISAOLIGARH
18 PADHAR
19 SATNAIR
20 SAWALMENDHA
21 BISNOOR
BR 22 DUNAWA
23 GHATBIROLI
24 JAULKHEDA
25 MASOD
MULTAI DIVISION
26 MULTAI RURAL
27 MULTAI URBAN
28 PRABHATPATTNAM
29 RAIAMLA
30 SAIKHEDA
31 BARASIA
32 GUNGA
33 DANISHKUNJ
34 INTKHEDI
BHOPAL O & M CIRCLE BHOPAL O&M DIVISION 35 KHAJURI SARAK
36 LALARIYA
37 MISROD R
38 NAZEERABAD R
39 PARWALIA SADAK
40
40 RATIBAD
41 SUKHI SEWANIYA
42 BUDHNI
BUDHNI O&M DN 43 REHTHI
44 SHAHGANJ
MANDIDEEP GR CTR DN 45 MANDIDEEP GRWTH CTR
46 LADKUI
NASRULLAGANJ O&M DN
47 NASRULLAGANJ
48 Ayodhya Nagar
49 Industrial Gate
50 Karond
EAST DN.
51 Chandbad
52 Anand Nagar
53 Bhanpur
54 Bairagarh
55 Bus Stand
56 City Kotwali
NORTH DN. 57 Imami Gate
58 Sultania
City Circle Bhopal 59 Indra Vihar
60 Chhola
61 Arera Colony
62 Kotra
63 MP Nagar
SOUTH DN.
64 T.T. Nagar
65 Jahangirabad
66 Bhadbhada
67 Shahpura
68 Shakti Nagar
WEST DN.
69 Vidhya Nagar
70 Vallabh Nagar
71 CHARUWA
72 HARDA RURAL NORTH
73 HARDA SOUTH RURAL
74 HARDA URBAN
HOSHANGABAD
HARDA DIVISION 75 KARTANA
CIRCLE
76 KHIRKIYA
77 MASANGAON R
78 RAHAIGARH GAON
79 SIRALI
41
80 TIMARNI
81 BAGHWADA
82 DOLARIYA
83 HOSHANGABAD RURAL
84 HOSHANGABAD ZONE 1
HOSHANGABAD DIVISI
85 HOSHANGABAD ZONE 2
86 SEONIMALWA R
87 SEONIMALWA URBAN
88 SHIVPUR
89 ARI
90 BABAI
91 GURRA
ITARSI DIVISION
92 ITARSI
93 KESHLA
94 PATHROTA
95 BANKHEDI
96 CHANDONE
97 PACHAMARI
98 PIPARIYA NORTH-R
99 PIPARIYA SOUTH
PIPARIYA DIVISION 100 PIPARIYA URBAN
101 SANDIA
102 SEMRI HARCHAND
103 SHOBHAPUR
104 SOHAGPUR RURAL
105 SOHAGPUR URBAN
106 BARELI RURAL
107 BARELI URBAN
108 BARI
BARELI DIVISION
109 DEORI
110 KHARGONE
111 UDAIPURA
112 CHICKLOD
RAISEN O&M CIRCLE 113 GOHARGANJ
OBEDULLAGANJ DVN
114 MANDIDEEP
115 OBEDULLAGANJ
116 BEGAMGANJ
117 BEGAMGANJ RURAL
RAISEN DIVISION 118 DAHEGAON
119 GAIRATGANJ
120 RAISEN R
42
121 RAISEN U
122 SALAMATPUR
123 SILWANI
124 BIAORA RURAL
125 BIORA URBAN
126 MALAWAR
BIAORA DIVISION 127 SUTHALIA
128 MAU
129 PADLIYAMATA
130 SARANGPUR
131 BODA
132 EKLERA
133 GADIA
134 JHADLA
NARSINGHGARH DVN
135 KURAWAR
RAJGARH O&M CIR
136 NARSINGHGARH RURAL
137 NARSINGHGARH URBAN
138 TALEN
139 CHHAPIHEDA
140 KHUJNER
141 PACHORE RURAL
142 PACHORE URBAN
RAJGARH BIORA DIV 143 KHILCHIPUR
144 MACHALPUR
145 RAJGARH RURAL
146 RAJGARH
147 ZEERAPUR
148 ASHTA URBAN
149 BHANWARA BAGER
150 HAKIMABAD
151 JAWAR
ASHTA DIVISION 152 KHACHROD
153 KOTHARI
154 MAINA
SEHORE O&M CIRCLE
155 METWARA
156 SIDDIQUE GANJ
157 AHMADPUR
158 AMLAHA
SEHORE DVN 159 BHAUKHEDI
160 BIJORI
161 BILGISGANJ
43
162 BIRJISH NAGAR
163 DIWADIA
164 DORAHA
165 ICHHAWAR
166 KHAJOORI KALAN
167 NAPLAKHEDI
168 SEHORE U
169 SHYAMPUR
170 THOONA
171 BAGRODA
172 BASODA T
173 DUMMY KURWAI
GANJ BASODA DIVISION 174 GANJ
175 LATERI
176 SIRONJ
VIDISHA CIRCLE 177 TYONDA
178 GYARASPUR
179 MIRZAPUR
180 NATERAN
VIDISHA DIVISION
181 SHAMSABAD
182 VIDISHA R
183 VIDISHA URBAN
184 ATAR
185 BHIND RURAL
186 BHIND URBAN
BHIND DIVISION
187 ETHAR R
188 PHOOP R
189 UMARI
190 GOHAD RURAL
191 GOHAD URBAN
GOHAD DIVISION
192 KIRATPURA
GR BHIND O&M CIRCLE 193 MAU
194 ALAMPUR RURAL
195 ASWAR
196 DABOH
LAHAR DIVISION
197 LAHAR
198 MIHONA
199 RON R
200 AMAYAN
MEHGAON DIVISION 201 BARAHED
202 GORMI
44
203 MEHGAON
204 ASHOKNAGAR U
205 AWARI R
206 CHANDERI
ASHOK NAGAR DIV 207 ESHAGARH URBAN
208 NAISARI R
209 SHADORA
210 TOMMAN
211 ARON
212 BAJRANGGARH
213 BHADORA
214 BAMORI
215 FATEHGARH
GUNA O&M DIVISION
216 GUNA R
217 GUNA URBAN
GUNA CIRCLE 218 MYNA
219 PAGARA R
220 RAMPUR R
221 BAHADURPUR
222 MIRKABAD
MUNGAWALI
223 MUNGAOLI U
224 PIPARI
225 BINAGANJ
226 CHACHODA
227 JAMNER
228 KUMBHRAJ
RAGHOGARH DIVISION
229 MAKSUDANGARH
230 MIRGWAS R
231 RAGHOGARH R &U
232 RUTHAI
233 C.S.S.
234 Baraghata
CENTRAL Division 235 C.P.S.S.
236 S.K.C.
237 Laxmiganj
GWALIOR CITY CIR 238 Morar
239 D.D.Nagar
EAST Division 240 Thatipur
241 City Centre
242 Baradari
NORTH Division 243 Vinay Nagar
45
244 Tansen
245 Phoolbag
246 Transport Nagar
247 Ladhedi
248 Kampoo
SOUTH Division 249 S. Kampoo
250 Gol pahadiya
251 ANTARI
252 BHITARWAR
253 CHINOR
254 DABRA
DABRA DIVISION 255 DABRA R
256 DEORI KALAN
257 KARHAIA
258 PICHORE
259 TEKANPUR
260 BANDONI KHURD
261 BASAI
262 BHANDER
263 DATIA R
264 DATIA U
265 INDERGARH I
GWALIOR O&M DATIA DIV
CIRCLE 266 INDERGARH II
267 SALON R
268 SEONDHA
269 SITAPUR
270 THARAT
271 UNNAO R
272 BARAI
273 GHATIGAON
274 GWALIOR RESII MORAR
275 HASTINAPUR
GWALIOR O&M DVN
276 MOHNA
277 MOTIJHEEL
278 SAKHIYA VILAS
279 UTILA
MALANPUR GROWTH
MALANPUR GR CTR DVN 280
CTR
281 AMBAH R&U
MORENA CIRCLE AMBAH DIVISION 282 DIMINI
283 KHADIYAHAR
46
284 PORSA R&U
285 RACHHED
286 RAJODHA
287 THARA/AMBATT
288 DATTAPURA U
MORENA-I O&M DN 289 GANESHPURA R & U
290 MORENA U
291 BAGHCHINI
292 BANMORE
293 HETAMPUR
MORENA-II O&M DN
294 JIGNI
295 NOORABAD R
296 SUMAOLI
297 ALAPUR
298 JAORA
299 KAILARAS
300 PAHARGARH
SABALGARH DIVISION 301 RAMPUR KALAN
302 SABALGARH R
303 SABALGARH URBAN
304 SUJARMA
305 ZUNDUPURA
306 BHOGI KA TIRAHA
307 DHODAR
308 DHONTI
309 GASWANI
SHEOPUR NORTH DIV 310 RAGHUNATHPUR
311 SOIKALAN
312 VEERPUR
SHEOPUR CIRCLE
313 VIJAYAPUR RURAL 2
314 VIJAYAPUR URBAN 1
315 BARODA
316 KARHAL
SHEOPUR SOUTH DIV 317 PANDOLA
318 SHEOPUR RURAL
319 SHEOPUR URBAN
320 BHONTI
321 KHANIA DHANA
SHIVPURI CIRCLE PICHHORE DIVISION 322 KHANIYADHANA RURAL
323 KHOD
324 PCHHORE RURAL
47
325 PICHHORE
326 BAIRAD I
327 BAIRAD II
328 BAROD 1
SHIVPURI I DIVISION 329 POHARI II
330 POHARI IST
331 SHIVPURI RURAL
332 SHIVPURI URBAN
333 BADARWAS
334 DINARA
335 KARERA URBAN
336 KHATORA RURAL
337 KHERAGHAT
SHIVPURI II DVN
338 KOLARAS RURAL
339 KOLARAS URBAN
340 MAGRONI
341 NARWAR
342 RANNOD
2 16 50 342
48
ANNEXURE -2
Format for Price Bid
Price Bid for the Group _____ (Please mention Group A to H whichever is applicable)
2015-16 to 2017-18 (LT Revenue Audit)
2016 -17 to 2017-18 (S & E Audit)
2018-19 (Books of A/c)
PV of Area Store March 2019)
Fees ( In Rs.)
Fees for audit of all Auditee Offices for the block period
including all T.A. /D.A., Lodging, Boarding, out of pocket
1 expenses etc. (Excluding GST) complete as per all Terms and
conditions mentioned in the Tender Document.
Quoted Fees = (A)
Total Number of Auditee Offices in the Group (B)
Quoted Fees per Auditee Office (A)/(B)
Price Bid for the Group _____ (Please mention I or J whichever is applicable)
For the block period 2015-16 to
17-18
Fees (In Rs)
Fees for audit of all Auditee Offices for a year
including all T.A. /D.A., Lodging, Boarding, out of
pocket expenses etc. (Excluding GST) complete as
1 per all Terms and conditions mentioned in the Tender
Document.
2 Total Quoted Fee (A)
3 No. of Consumers (B)
4 Quoted Fees per Consumer (C=A/B)
_____________________________
(To be signed by an authorized signatory of the Bidder / Consortium Leader, along-with seal of firm)
Title of Authorized Signatory
Name of Firm
Date and Place
49
NOTE:
1. The Price Bid shall be submitted as a ,,fixed price quote for the deliverables specified in this document.
2. The Bidder quoting the lowest Quoted Price per Office shall be given the highest score i.e. 100.
3. All prices should be in INR and shall be specified in figures and words and price should be in whole number.
4. It may please be noted that payment shall be released, as specified above in the Tender Document, subject to
satisfactory progress of the work.
5. If there is a discrepancy between words and figures, the amount in words will prevail. However, if the amount
quoted in words is not legible or not clear in meaning, MPMKVVCL, Bhopal may consider the amount quoted in
figures as final. Such offers may also be rejected at the sole discretion of MPMKVVCL, Bhopal.
50
ANNEXURE -3
Covering Letter for submission of Bid
(The covering letter is to be submitted by the Bidder on its Letterhead)
(To be kept in envelope 1)
Date: .......................................
To,
Chief Finance Officer
O/o MD(CZ), MPMKVVCL,
Nishtha Parisar,Govindpura, Bhopal.
Dear Sir,
Sub: Bid for Appointment of Internal Auditors at the Region/ Circle Level, MPMKVVCL, Bhopal (Tender
Specification No MD/MK/05/NIT/..... Bhopal, DT .......)
In response to the Notice Inviting Offers, dated ....... issued by MPMKVVCL, we offer PROPOSAL to participate in the bidding
process for selection of the "Internal Auditors at the Circle Level."
We are submitting this PROPOSAL on our own. If selected, we understand that it would be on the basis of the organizational,
technical, financial capabilities and experience as specified in the Tender document.
We understand that the basis for our qualification will be our PROPOSAL, and that any circumstance affecting our continued
eligibility under the Tender document, or any circumstance which would lead or have led to our disqualification under the Tender
document, shall result in our disqualification under this process.
We understand that you are not bound to accept any or all our PROPOSALS you receive.
We declare that we have not entered into any sub-contracting arrangement with any other person or firm including the other
Bidders for the assignment, in connection with the preparation and/or submission of our PROPOSAL for the assignment, or
preparation of the bidding documents.
We submit herewith, authenticated copies of the firms Partnership Deed (as applicable).
We declare that we have disclosed all material information, facts and circumstances to the MPMKVVCL, which would be
relevant to and have a bearing on the evaluation of our PROPOSAL and selection.
We acknowledge and understand that in the event that MPMKVVCL discovers anything contrary to our above declarations; it is
empowered to forthwith disqualify us and our PROPOSAL from further participation in the process.
For information/ clarification Mr. ........... (Name of the Partner) , address, email id, telephone number may be contacted.
We hereby state that we have read and understood the terms and conditions of the Tender document and agree to abide by the
same. We further agree to undertake the said assignment to the satisfaction of MPMKVVCL, Bhopal and as per the terms and
conditions of the tender document.
Yours faithfully,
Partner of the Bidder / Consortium Leader
Name & Seal of Signatory
Address:
Note: Partners of the Partnership Firm will sign the letter.
51
ANNEXURE -4
Letter for submission of cost of tender document and EMD
(The covering letter is to be submitted by the Bidder on its Letterhead)
(To be kept in envelope 1)
Date: .......................................
To,
Chief Finance Officer
O/o MD(CZ), MPMKVVCL,
Nishtha Parisar,Govindpura, Bhopal.
Dear Sir,
Sub: Bid for Appointment of Internal Auditors at the Region/ Circle Level, MPMKVVCL, Bhopal (Tender
Specification No MD/MK/05/NIT/........ Bhopal, Dt. ...........)
We are enclosing the following:
a. Account payee Demand draft drawn on ................ ) for ` 2,240/- (Rupees Two thousand Two Hundred Forty only), drawn in favor of
"Sr. Accounts Officer (HOAU), MPMKVVCL" payable at Bhopal, towards cost of tender document.
b. Account payee Demand draft drawn on ...................) for
Rupees (as applicable as per table), drawn in favor of "Sr. Accounts Officer (HOAU), MPMKVVCL" payable at
Bhopal, towards Earnest Money Deposit.
Enclosures:
1. ..................................
2. ..................................
3. ..................................
Thanking You,
.................................
(Signature of Partner of the Bidder / Consortium Leader)
Name...
Date...
Place...
52
ANNEXURE -5
Bidders Background and Qualifications Criteria for Technical Evaluation
(A) Details of the Bidder / Consortium Leader and other firms (in case of consortium the consortium leader will be given
70 % weightage and the other partner shall be given 30 % weightage)
S. No. Particulars Information Enclosures Max marks out of 100
1 Name of the Firm Latest Partnership Deed
2 Address of the Head Office of
the Firm ( Phone No., Email id,
fax, Mobile No., Address)
3 Firm Registration No. (as Latest constitution
mentioned in the constitution certificate of the Firm
certificate) issued by ICAI
4 Whether the Head Office / -do-
Branch Office is in Bhopal
5 Whether any Office of Operation -do-
is in the Circle of the Group.
6 No. of Branches of the Firm
7 Address of Branches with the
Date of Opening
8 Number of Full-time Partners
with the firm
9 Name of the Partners in the firm
along with their membership
number issued by ICAI, and the
year of association with the firm
10 Team Leader to be assigned on Biodata with experience
the assignment with their of the Team Leader
qualification likely to be assigned to
the task
11 No. and name of the Biodata of the Audit
Professionals to be provided by Officers likely to be
the bidder on the assignment. assigned on the task.
12 Turnover Financial Statements 15
13 Date of Formation of Partnership Certificate 15
Firm
14 Number of Partners Latest Form No. of ICAI 15
15 No. of CA on the rol1 of the -do- 15
bidder
16 No. of other paid staff on the 10
rol1 of bidder
17 Ex-employee of any of the 10
electrical distribution companies
in MP (5 Marks per employee
subject to maximum 10 Marks)
18 Previous Experience of Internal 10
Audit of any State Electricity
Distribution Utility
17 No. of Articles Trainees 10
Note : 1. Documentary evidence is to be provided in support of the above criteria.
2. Full marks will be given to the firm scoring the highest of the respective criteria. Lower
marks will be proportionately be given to other firms. Eg: If firm "a" has the maximum
turnover has the overall turnover of Rs. 70 Lacs, Firm "a" will get full marks i.e. 20 marks, say
53
firm "b" has an overall turnover of Rs 55 Lakhs will get 15.71 marks as per calculation
(55/70)*20.
B) Financial Statements of the bidder
Details of the Bidder / Consortium Leader
S. No. Particulars 2015-16 2016-17 2017-18
1 Total Assets
2 Total Liabilities
3 Net worth
4 Annual Turnover
5 Total expenditure
6 Depreciation
7 PBT (Profit before tax)
8 PAT (Profit after tax)
Note:
1. Attach copies of the audited financial statements of the last 3 financial years.
2. Attach photocopies of Income Tax returns of the firm for last 3 financial years.
(C) Credentials of the Bidders
a) A brief "Profile" of the Firms Practice and experience giving the following details clearly:
Details of the assignment / projects undertaken by the bidder in the last 10 years with the
following information
1 Assignments undertaken.
2 Form of organization (Partnership/ Proprietary/Company).
3 Nature of Operation of the organization
4 Experience/Completion Certificates of Statutory / Internal Audit from at least three clients out of the Clients as mentioned
above.
Curriculum Vitae of the Individual Experts, Team Leader and the Audit Officers proposed
on the engagement.
54
ANNEXURE -6
(This undertaking is to be submitted along with the Technical Bid.)
(This undertaking should be on a non-judicial stamp paper of requisite value duly notarized)
To,
Chief Finance Officer,
O/o MD(CZ), MPMKVVCL,
Nishtha Parisar, Govindpura, Bhopal.
Dear Sir,
Sub: Bid for Appointment of Internal Auditors for ............ Circle, MPMKVVCL, Bhopal (Tender Specification
No.MD/MK/05/NIT/....... Bhopal dtd :.......)
This undertaking is submitted in respect of the appointment of Internal Auditors for Circle Office of MPMKVVCL,
Bhopal, in response to the tender document dated ....... issued by MPMKVVCL, Bhopal and subsequent amendment
thereof.
We hereby confirm that:
1. We have never been blacklisted by any Government Department or Public Sector Undertaking of any State
Government in India or the Government of India for practicing in India.
2. We have no pending or contemplated legal suit or criminal cases on grounds of turpitude or for violation of any other
law in force.
We understand and agree that if the information mentioned above is found to be incorrect at any stage of this Bidding Process;
our Bid shall be considered as non-responsive and rejected accordingly. If this undertaking is found to be incorrect post the issue
of LoA, then such LoA issued shall be cancelled and the contract terminated, without any liability to either Party. Under such
circumstances, however, we acknowledge and accept the right of MPMKVVCL to encash our EMD.
We further understand and agree that if the Audit is awarded to us and this undertaking is found to be incorrect after execution of
the work, the order of appointments stands terminated, without any liability to either Party. Under such circumstances, however,
we acknowledge and accept the right of MPMKVVCL to encash our security deposit.
.....................................................
(Signature of the Partner of the Firm/ Consortium Leader)
Name...
Date...
Place...
55
ANNEXURE -7
Format for Clarification in Tender Document
Clause no. and existing
Sl. No. Clarification required Rationale for the clarification
provision
56
ANNEXURE -8
(b) ,,Composite Report format for the Audit of Auditee Office
............ Auditee Office
Audit Dates
Audit Firm
Partner in Charge
Manager
Team Leader
Audit Team
Report discussed and finalized on
A. Contents
B. Executive Summary
A summary shall be included classifying issues as The issues shall also be classified on the basis of their nature as
follows Design deficiency, Operational inefficiency, System Deficiency.
Priority I Issues This shall include issues requiring Immediate Implementation /
Compliance & having high business impact.
Priority II Issues This shall include issues requiring Implementation / Compliance
in medium & Long term & having low business impact.
C. Current Year Issues
Sr. No Issue / Root Cause Implication/ Risk Recommendation Management
Response
D. Follow-up of Previous Reports
Sr. No. Summarized Agreed Current Current Current
Agreement Implementation Implementation Recommendation Implementation
Date Status Plan
57
Audit Dates
E. Category wise list of audit short claims
Category of consumer Audit short claim Remarks
Energy Charges Interest Others
.................................
(Signature of Partner of the Bidder / Consortium Leader)
Name: ...................................
Date: ...................................
Place: ...................................
58
ANNEXURE -9
Schedule of Opening of Financial Bids
Group Region/ Circle Office
A Bhopal City Circle + O&M Circle Vidisha
B O&M Circle Sehore + O&M Circle Rajgarh
C O&M Circle Betul + O&M Circle Hoshangabad
D Bhopal Regional Office + O&M Circle Bhopal (Including Raisen Circle)
E Gwalior City Circle + O&M Circle Sheopur
F O&M Circle Bhind + O&M Circle Morena
G O&M Circle Guna + O&M Circle Shivpuri
H O&M Circle Gwalior + Gwalior Regional Office
I HT Revenue Audit Bhopal Region:-
(ix) City Circle Bhopal
(x) O&M Circle Bhopal (Including Raisen Circle)
(xi) O&M Circle Sehore
(xii) O&M Circle Rajgarh
(xiii) O&M Circle Betul
(xiv) O&M Circle Hoshangabad
(xv) O&M Circle Vidisha
J HT Revenue Audit Gwalior Region:-
(viii) Gwalior City Circle
(ix) O&M Circle Gwalior
(x) O&M Circle Bhind
(xi) O&M Circle Morena
(xii) O&M Circle Guna
(xiii) O&M Circle Shivpuri
(xiv) O&M Circle Sheopur
59
ANNEXURE -10
Indicative Performance Parameters of the work of Internal Auditor
The performance of the Auditor shall be determined based on the following parameters:
Feedback from the competent authority of the Company;
Elapsed time for issue of reports completion of audit work to draft report;
Elapsed time for issue of reports draft to final report;
% unsatisfactory audit opinions (not more than 10%);
% of recommendations accepted (not less than 50% - 70%);
Number of repeat audit findings;
Amount of direct savings potential as a result of audits;
Amount of measurable savings achieved as a direct result of audits;
Number of major process improvements implemented as a result of audits;
Extent of reliance External audit can place on Internal Audit;
Extent of advice given; and
Number of best practice ideas shared
In addition to the above list, the Internal Auditor is also expected to follow and meet the minimum
standards for Internal Audit as prescribed from time to time.
60
ANNEXURE -11
ON LETTER HEAD OF THE CONCERNING AUDITEE OFFICE
(To be issued by DC/Zone In charge)
CERTIFICATE OF COMPLETION OF INTERNAL AUDIT
I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the LT Revenue audit of ( Name of DC/Zone) for the period __________
from _____ to _________ as per order No. ________________ dated ___________.
It is further certified that we have discussed at length the observations raised by the Audit and the
initial result of our discussion is as under:-
1) No. of Para raised by audit
Particulars No. of Para Amount
With Recovery
Without Recovery N/A
Total No. of Paras
2) Para which is accepted/not accepted
Particulars No. of Para Amount
Accepted Not Accepted Accepted Not Accepted
With Recovery
Without Recovery N/A N/A
Total
3) Paras on which opinion of Division office is required and comments of division on Paras Not
Accepted by the Dc/Zone in charge are separately enclosed as "Annexure-A".
Further, it will be ensured on our part that the demand against accepted Paras (with recovery) will be
raised in the next billing cycle and the compliance will be sent within 30 days.
Date: - (Seal & Signature of Office in charge)
Place: - Name of Office
It is certified that we have discussed with the DC/Zone in charge and his/her views are duly
incorporated above.
Date: - (Seal of CA Firm & Signature of Audit Officer)
Place: - Name Of Audit Officer
(This Document will be prepared by the Audit Team of CA Firm)
61
"Annexure-A"
1) Paras Not Accepted by DC/Zone:-
Para No. Brief Description of Para Amount involved Agreed/Not Agreed by
comments of DC/Zone
2) Paras on which opinion of division office is required:-
Para No. Brief Description of Para Amount involved Opinion of Division
Date: - (Seal & Signature of Office DC/Zone in charge)
Place: - Name of Office
Date: - (Seal & Signature of Division in charge)
Place: - Name of Office
(This Document will be prepared by the Audit Team of CA Firm)
62
ON LETTER HEAD OF THE CONCERNING DIVISION
(To be issued by the Divisional Engineer for System & Expenditure Audit of their Division)
CERTIFICATE OF COMPLETION OF INTERNAL AUDIT
I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the audit of System & Expenditure of ( Name of Division) for the period
__________ from _____ to _________ as per order No. ________________ dated ___________.
It is further certified that we have discussed at length the observations find out by the Audit and the
initial result of our discussion is as under:-
1) No. of Para raised by audit
Particulars No. of Para Amount
With Recovery
Without Recovery N/A
Total No. of Paras
2) Para which is accepted/not accepted
Particulars No. of Para Amount
Accepted Not Accepted Accepted Not Accepted
With Recovery
Without Recovery N/A N/A
Total
3) Paras on which opinion of Circle office is required and comments of Circle on Paras Not Accepted
by the Division in charge are separately enclosed as "Annexure-AA".
Further, it will be ensured on our part that the demand against the accepted No. of Paras (with recovery)
will be recovered and the compliance will be sent within 30 days.
Date: - (Seal & Signature of Division in charge)
Place: - Name of Office
It is certified that we have discussed with the DC/Zone in charge and his/her views are duly
incorporated above.
Date: - (Seal of CA Firm & Signature of Audit Officer)
Place: - Name Of Audit
(This Document will be prepared by the Audit Team of CA Firm)
"Annexure-AA"
63
3) Paras Not Accepted by the Division:-
Para No. Brief Description of Para Amount involved Agreed/Not Agreed by
comments of Division
4) Paras on which opinion of Circle office is required:-
Para No. Brief Description of Para Amount involved Opinion of Circle
Date: - (Seal & Signature of Office DC/Zone in charge)
Place: - Name of Office
Date: - (Seal & Signature of Division in charge)
Place: - Name of Office
(This Document will be prepared by the Audit Team of CA Firm)
64
ON LETTER HEAD OF THE CONCERNING DIVISION
(To be issued by the Divisional Engineer for LT Revenue Audit of the DCs under their Division)
CERTIFICATE OF COMPLETION OF INTERNAL AUDIT
It is certified that we have gone through of all the reports of internal audit of LT revenue of the DCs/
Zones under the jurisdiction of this division submitted by M/s (Name of CA Firm) and discussed at
length the observations raised by the Audit. The following reports are discussed with the auditors:-
Sl. No. Name of DC/Zone Remark if Any
Date: - (Seal & Signature of Office in charge)
Place: - Name of Office
(This Document will be prepared by the Audit Team of CA Firm)
65
ON LETTER HEAD OF THE CONCERNING ACCOUNTING UNIT
(To be issued by the Sr. AO/AO for HT Revenue Audit of their Circle)
CERTIFICATE OF COMPLETION OF INTERNAL AUDIT
I, (Name of officer) , (Designation of officer) , O/o _____________________ has certified that M/s (Name
of CA Firm) has conducted the HT Revenue audit of ( Name of Circle) for the period __________ from
_____ to _________ as per order No. ________________ dated ___________.
It is further certified that we have discussed at length the observations find out by the Audit and the
initial result of our discussion is as under:-
1) No. of Para raised by audit
Particulars No. of Para Amount
With Recovery
Without Recovery N/A
Total No. of Paras
2) Para which is accepted/not accepted
Particulars No. of Para Amount
Accepted Not Accepted Accepted Not Accepted
With Recovery
Without Recovery N/A N/A
Total
3) Paras on which opinion of Circle office is required and comments of Circle on Paras Not Accepted
by the office in charge are separately enclosed as "Annexure-AA".
Further, it will be ensured on our part that the demand against the accepted No. of Paras (with recovery)
will be recovered and the compliance will be sent within 30 days.
Date: - (Seal & Signature of RAO)
Place: - Name of Office
It is certified that we have discussed with the Sr. AO/ AO and his/her views are duly incorporated
above.
Date: - (Seal of CA Firm & Signature of Audit Officer)
Place: - Name Of Audit
(This Document will be prepared by the Audit Team of CA Firm)
66
"Annexure-AA"
4) Paras Not Accepted by the RAO:-
Para No. Brief Description of Para Amount involved Agreed/Not Agreed by
comments of RAO
5) Paras on which opinion of Circle office is required:-
Para No. Brief Description of Para Amount involved Opinion of Circle
Date: - (Seal & Signature of Sr.AO/AO)
Place: - Name of Office
(This Document will be prepared by the Audit Team of CA Firm)
67
ANNEXURE -12
PROFORMA OF BANK GUARANTEE FOR CONTRACT PERFORMANCE
(To be stamped in accordance with stamp Act)
Ref: ............................ Bank Guarantee No..................
Dated.....................................
To,
Chief Financial officer ,
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company ltd.
Nishtha Parisar, Govindpura, Bhopal
Madhya Pradesh.
Dear Sirs,
In consideration of Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. (hereinafter referred
to as the ,,Owner which expression shall unless repugnant to the context or meaning thereof include its
successors, administrators and assigns) having awarded to M/S
...................................................with its registered/Head office at
........................... (Herein after referred to as the internal auditor which expression shall unless
repugnant to the context or meaning thereof, include its successors, administrators, executors and
assigns), a Contract by issue of Owners Letter of Award
No..............................dated ...............and the same having been unequivocally accepted by the
internal auditor, resulting in a Contract bearing No......................Dated.....................Valued at
.............................for...........................(Scope of Contract) and the inter auditor having agreed
to provide a Contract Performance Guarantee for the faithful performance of the entire Contract
equivalent to ................ (%)................. (Percent) of the said value of the Contract to the Owner.
We .................................................................................... (Name and Address of the
Bank).
Having its Head Office at ........................(hereinafter referred to as the ,,Bank which expression
shall, unless repugnant to the context or meaning thereof, include its successors, administrators, executors
and assigns) do hereby guarantee and undertake to pay the Owner, on demand any and all monies payable
by the internal auditor to the extent of................................as aforesaid at any time
upto.............................(days/month/year) without any demur, reservation, contest recourse or protest
and/or without any reference to the Internal auditor.
Any such demand made by the owner on the Bank shall be conclusive and binding notwithstanding any
difference between the owner and the internal or any dispute pending before any Court, Tribunal,
Arbitrator or any authority. The Bank undertakes not to revoke his guarantee during its currency without
previous consent of the Owner and further agrees that the guarantee herein contained shall continue to be
enforceable till the Owner discharges this guarantee.
The Owner shall have the fullest liberty without affecting in any way the liability of the
Bank under this guarantee, from time to time to extend the time for performance of the contract by the
internal auditor. The Owner shall have the fullest liberty, without affecting this guarantee to postpone
from time to time the exercise of any powers vested in them or any right which they might have against
the internal auditor, and to exercise the same at any time in any manner and either to enforce or to for bear
to enforce any covenants, contained or implied, in the Contract between the Owner and the Internal
auditor or any other course or remedy or security available to the owner. The Bank shall not be released
or its obligations under these presents by any exercise by the Owner of its liberty without reference in the
matters aforesaid or any of them or by reason of any other Act of omission or commission on the part of
the Owner or any other indulgences shown by the Owner or by any other matter or thing whatsoever
which under law would but for this provision have the effect of relieving the Bank.
68
The Bank also agrees that the Owner at its option shall be entitled to enforce this guarantee against the
Bank as a principal debtor, in the first instance without proceeding against the internal auditor and
notwithstanding any security or other guarantees the owner may have in relation to the Internal auditors
liabilities.
Notwithstanding anything contained herein above our liability under this guarantee is
restricted to............................And it shall remain in force upto and including........and shall be
extended from time to time for such period as may be desired by M/S ........................................
On whose behalf this guarantee has been given.
Dated this.........................Day of........................2016 at.......................
WITNESS
............................. ..................................
(Signature) (Signature)
............................. ...................................
(Name) (Name)
...................................
(Official Address) (Designation with Bank Stamp)
Attorney as per Power Of
Attorney No:..........................
Date:...................
Note:
This sum shall be 10% of the annual quoted fees.
The date will be One Hundred and Twenty days (120 days) after the end of Warranty Period as specified
in the Contract.
The stamp papers of appropriate value shall be purchased in the name of issuing firm.
69
Annexure-13
Agreement
This Agreement is made at Bhopal on the .............................. between Madhya Pradesh Madhya
Kshtera Vidyut Vitran Company Limited, a Company Incorporated under the Companies Act 1956
and having its Registered Office at Nishtha Parisar, Govindpura Bhopal-462023 (Hereinafter referred to
as "MPMKVVCL" and the Regional Office at Bhopal & Gwalior. Which expression shall unless
repugnant to the context a meaning there of be deemed to mean and include its successors and assignees
as the first party.
AND
............................................, Chartered Accountant having Head Office at
.............................................................................................and Branch Office at
.................................................................................(Hereinafter referred to as, Which
Expression shall unless repugnant to the context a meaning thereof be deemed to mean and include its
successors and assign) as the Second Party.
WHEREAS
WHEREAS MPMKVVCL has been incorporated a wholly owned undertaking of Govt. of Madhya
Pradesh and is entrusted with the task of sub-transmission and distribution of electricity in the territorial
areas comprising all the district within the administrative jurisdiction of the four divisional
commissionaires of Madhya Pradesh namely Bhopal, Hoshangabad, Gwalior and Chambal.
b) And whereas the client had issued an enquiry vide No.
.................................................................... for outsourcing the internal audit of
Region/Circle Office to the Chartered Accountant firm.
c) And therefore, in response the auditor has offered his rate to the client. The client after evaluating rate
issued a letter of award to participant auditor vide ....................................... Bhopal, dated
....................... to give his consent in case they are interested to conduct the internal audit of Group
No ................... of the Company on the rate as approved by the Company as per letter of Award.
d) That the auditor is .......................................... the firm is registered in ICAI and his registration
No. is ........................... The Head Office of the Firm is situated
.......................................................................................................................
........................................................................................................................
e) That the auditor here by confirms that:
The firm has never been blacklisted by any Government Department or Public Sector
Undertaking of any State Government in India or the Government of India for practicing in India.
70
The firm has no pending or contemplated legal suit or criminal cases on grounds of turpitude or
for violation of any other law in force.
The firm understands and agrees that if the information furnished by the auditor is found to be
incorrect at any stage during tenure of audit, the contact is liable to be terminated unilaterally,
with the cost and liability to the auditor.
f) From the service commencement date the firm shall provide the services in accordance with the terms
of this agreement & tender document and will ensure that with effect from the services commencement
date, team of persons are available to provide the services as per the requirements of the tender
documents.
g) The firm agrees that it will follow and comply with any reasonable instruction, direction or requests
given or issued which are consistent with the terms of this agreement by MPMKVVCLs relevant
authorized representative in writing or, where it was reasonably impracticable to do so in writing, given
orally and subsequently confirmed in writing by such authorized representative in connection with the
performance of the services.
h) In accordance with the said allotment, the auditor will arrange to conduct the Internal Audit of Group
no...................... in accordance with the scope, process, procedure of collecting, analyzing,
interpreting and documenting so as to ensure the objectivity of internal controls.
i) The firm shall perform the services in accordance with the services levels as part of the scope of
services in the tender document. If the firm to meet the services levels as per scope of services, the form
shall as soon as reasonably practicable:-
Identify the cause of such failure;
Take such action as is reasonably required to minimize the impact of the failure and to prevent
it from recurring;
Where possible, correct the failure ; and
Advice MPMKVVCL, of the status of the remedial efforts being undertaken for meeting the
services levels as per scope work.
j) The head of department (HOD) of the Office to be audited will arrange all the records as may be
demanded in writing by the auditor for his examination as per rules and regulations applicable for the
time being in force.
k) As per the outcome of the examination of the records the irregularity, infringement, deficiency and
manipulations observed if any will be pointed out and reported through half margin (HM) to the Head of
Department for clarifications etc.
l) The Head of department of whose office being audited will arrange the reply of HM within 48 hrs. The
reply / clarification given by the HOD will be examined by the auditor in context to the observations. If
the reply is found convincing, satisfactory and meeting the requirement of the observations the Para will
be dropped. The audit Para which are not dropped will be converted into draft Para for inclusion in the
audit report.
71
m) On completion of audit of the allotted office, the auditor will prepare a draft audit report on the basis
of clause-(h, i & j) above and discuss with the head of department (HOD) audited. According to outcome
of the discussion the draft Para will be finalized for preparation of audit report.
The audit report so prepared will be supported with subsidiary annexure to make the audit report
comprehensive and justifiable.
n) Confidentiality:
All data, information audit plans and reports will be regards as strictly confidential and for the
client and their representatives only.
For the avoidance of doubt, no details whatsoever of the clients business obtained during the
course of the audit shall be divulged to any unauthorized third party, without prior written
permission of the Director (Finance) or his designated office.
In the event of material breach of confidentiality provisions the client shall have the right to
terminate the services upon giving written notice to the effect.
All Audit files, working papers, reports and other documents specifics to the client shall remain
the property of the client/ all archives/ material will be stored on the clients property or such
other location as authorized by the client.
All current audit files, working papers, reports and other documents specific to the client will be
held by the auditor in secure locked filing cabinets located in designated Internal Audit
accommodation.
o) The Auditor shall abide himself to arrange payment in accordance with the rate as shown in letter of
award no..................................... Bhopal, Dated...........2017. The auditor shall invoice
MPMKVVCL, for the charges as laid out in the tender document.
p) Force Majeure event means any event beyond the reasonable control of the affected party, Force
Majeure event includes, but is not limited to, acts of god, expropriation or confiscation of facilities, any
form of government intervention, war, hostilities, rebellion, terrorist activity, local or national emergency
(including an emergency services to a hospital), sabotage or riots, and floods, fires, explosions or other
catastrophes.
Force Majeure does not include:
Strikes or other industrial action by employees of MPMKVVCL or the vendor; or
Any act or omission of partys employees, agents, or subcontractors (Except to the
extent that Person is affected by force majeure events.)
q) Neither party shall be responsible for failure to, or delay in, carrying out any of its duties under this
agreement to the extent to which this is caused by a force majeure event.
r) Should a Force Majeure Event occur, the affected party shall:
Take all reasonable steps to overcome and mitigate the effects of the Force Majeure Events as
soon as reasonably practicable, including actively managing any problems caused or contribute
to by third parties and liaising with them;
s) On becoming aware of the Force Majeure event promptly inform the other in writing of the details and
provides information of the force majeure event and information about which services have been
affected to the extent that such information is known, together with, if practicable, an estimate of the
period during which the force majeure event will continue; and notify the other as soon as it becomes
72
aware that the force majeure event hast stopped. If the force majeure event continues for more than 15
calendar days, the unaffected party may terminate this agreement by giving 15 calendar days written cost
or liability to the other party (except in respect of antecedent breaches).
t) Nothing in this clause shall suspend MPMKVVCLs obligation to pay the charges in accordance with
this agreement in respect of any portion of the services provided by the firm to MPMKVVCL not
affected by a force majeure event.
u) Any dispute arising out of the contracts which have not been amicably settled by mutual discussion
shall only be referred to the arbitration in accordance with arbitration and conciliation Act 1956.
v) The contract shall commence w.e.f. the date of signing of the contract and shall be valid initially for a
period of.............................
w) MPMKVVCL, Bhopal reserves the right to cancel the contract without assigning any reasons thereof
without any liability of any party.
x) The auditor will raise no objection for termination of contract by client, in case of any information
provided by the auditor is found contrary to eligibility criteria, at any stage during the validity of
contract, and agrees to compensate all the damages and cost incurred by client, on termination and
retendering.
Signed on this ................................................. In presence of the witnesses as shown below:-
(Auditor)
M/s.......................................... Chief Finance Officer
Chartered Accountants for and on behalf of MPMKVVCL
Witness (1) Witness (2)
1. 1.
2. 2.
73
|
