NOTICE INVITING EXPRESSION OF INTEREST FOR EMPANELMENT OF FIRM OF CHARTERED
ACCOUNTANTS FOR STATUTORY AUDIT OF THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
FOR THE FINANCIAL YEAR 2019-20
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EXPRESSION OF INTEREST OF APPOINTMENT OF STATUTORY AUDITORS OF THE INSTITUTE FOR
2019-20
The Institute of Cost Accountants of India (erstwhile The Institute of Cost and Works
Accountants of India) is a statutory body which has the role of promoting, regulating and
developing the profession of Cost Accountancy.
The Institute was established by a special act of Parliament, namely, the Cost and Works
Accountants Act, 1959 as a statutory professional body for the regulation of the profession of
Cost and Management Accountancy.
It has since been continuously contributing to the growth of the industrial and economic climate
of the country.
The Institute of Cost Accountants of India is the only recognised statutory professional
organisation and licensing body in India specialising exclusively in Cost and Management
Accountancy.
The Head Office is situated at 12, Sudder Street, Kolkata 700 016 and operates through Delhi
Office, Four Regional Councils at Kolkata, Chennai, Delhi and Mumbai as well as 99 chapters
situated elsewhere in India.
The Institute invites offers from interested Chartered Accountant firms for appointment as
Statutory Auditors of the Institute with experience in auditing the Accounts of autonomous
Institutions/statutory bodies and provide the services as per the Scope of Work stated below.
OBJECTIVES
The objectives of the statutory audit for the financial year 2019-20 is to seek a professional
opinion on the financial statement of " T he Institute of Cost Accountants of India" for the
financial year 2019-20 and to ensure that funds received and expenditure incurred are in
accordance with the laid down financial regulations, prescribed Procurement procedures, and
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other orders issued from time to time as well as to ensure proper maintenance of books of
accounts and other relevant documents at all levels.
BACKGROUND
The Annual Accounts of Headquarters, Kolkata and Delhi Office are prepared and maintained
through TALLY.ERP9 accounting software and the accounts of both these locations are merged
at headquarters with the adjustment entries at the year end. Audit of the accounts of
Headquarters, Kolkata & Delhi to be done by the Statutory Audit of the Institute (Central
Auditor).
The Accounts of 4 Regional Councils and 99 Chapters are audited by the respective statutory
auditor as appointed by the governing body the Regional Council & Chapter. The audited
accounts as received from Regional Councils and Chapters are consolidated at the Headquarters
by adding the figures of respective line items after requisite adjustment entries for setting off
various inter unit transactions. The Central Auditor will rely on the audited accounts,
management disclosure certificate(s) and the audit report of Regional Councils and Chapters for
conducting audit of Consolidated Accounts of the Institute and report thereon.
Scope
The Statutory Audit will be carried out in accordance with the Generally Accepted Auditing
Principles and will include tests and controls, as the auditors feel necessary under the
circumstances. The major areas to be covered are as under:-
Headquarters, Kolkata & Delhi Office
1. Statutory Audit to cover the areas ensuring that,
(a) Transactions a r e r e c o r d e d a s per principles of Generally Accepted Accounting
Principles and are booked to proper accounting heads.
(b) Utilization of funds is in accordance with financing agreements.
(c) To check all statutory records registers including Minute Books and to see that
accounting effects of all the decisions taken at General Meeting/Board of Governors
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Meeting /Audit Committee Meeting are given in the Books of Account.
(d) Goods and services have been procured in compliance with the financing
agreement.
(e) Transactions are duly supported by proper supporting documents.
(f) Checking the maintenance of books of accounts and records.
(g) Checking the bank reconciliation statements.
(h) Checking of component wise, category-wise and account head wise expenditures.
(i) Checking of investments, short term deposit etc. made from time to time.
(j) Checking of various taxes/statutory compliance.
(k) Verification of fixed deposit register and checking of interest received.
(l) File Annual Income Tax Return of the Institute through Form 10(b) & ITR 7.
(m) To give executive summary incorporating all points/matters; which are of very
important nature.
2. Financial Books
Verification of Bank Book Journal, Vouching of Imprest Cash.
(b) Scrutiny of all General Ledger, Staff Advance Registers, Commenting on loan
outstanding entries, etc.
(c) Verification of cash, cheques on hand etc. as on 31st of March every year.
(d) Verification of all computer vouchers and sheets ensure correct coding and
accounting head.
(e) Scrutiny of general ledger and Verification of Income and Expenditure
Statement, and Balance sheet and other Schedules.
(f) Verification of Salary/ Consultancy payments, P.F, I.T., TDS, GST, Professional Tax
etc. and verification of submission of various return to the competent authority in
time.
(g) Verification of fixed asset register (FAR) and to check the reconciliation of physical
verification report with the FAR
(h) Verification of detailed schedule of interests received on Fixed Deposit investments
and calculations of accrued interest.
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(i) Verification of all financial information completely, promptly and after the
necessary authorisation was recorded.
(j) Any other work needed for Accounts finalization
(i)Regional Council and Chapters
(a) Scrutiny of the Audited Income & Expenditure Accounts and Balance Sheet,
Management Disclosure Certificate(s) and Auditor's report of the Regional Councils
and Chapters and to recommend on any deviation with respect to Accounting Policy,
general accounting principle, adherence to Act & Regulation of Institute.
(b) To check the closing balance figures of Current A/c with Headquarters, various
grants received from H.Q.
(ii)Consolidated Annual Accounts
(a) To check and verify all the adjustment entries for setting off all inter unit transactions.
(b) To check and verify the closing entries.
(c) Check all postings of figures in Income and Expenditure A/c and Balance Sheet from the
consolidated Trial Balance.
3. Comprehensive audit
The areas covered by comprehensive audit may cover comparison of the results shown in
the current period financial statements with prior periods and if available, with
budgets and forecasts, investment decisions, delegation of financial powers and
management of information systems, organisational effectiveness, management of fixed
assets etc.
4. Accounting policy & standard
(a) To review and help the management in implementing proper accounting procedures,
internal check control and computerized systems.
(b) Review of Accounts.
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(c) Check all recorded entries comply with accounting standard.
5. System Improvement
The selected Auditor(s) will report any lacuna noticed in the existing procedures and s u g g e s t
i m p r o v e m e n t . Any d u p l i c a t i o n o f w o r k n o t i c e d o r w o r k o r unnecessary
data noticed will be highlighted and reported.
6. The Chartered Accountant firm so appointed would be required to give:-
· Audit Certificates and issue any other certificate as may be required by the Institute from
time to time without any additional fee to be paid by the Institute.
· Statements in annual report that describes the work of The Institute of Cost
Accountants of India. The responsibilities of the audit also include reporting on the
adequacy of statements.
7. Liaison
The selected Auditor(s) will liaise with the Management for the periodical meetings
to review the progress of the work and to ensure requirement be fully met.
8. To suggest the measures for cost control and measures to increase the revenue of the
Institute.
9. The Chartered Accountant firm so appointed would be required to look into the
compliance of previous audit objections raised (if any) and have to verify or comment on
the supporting documents/ vouchers submitted at latter stage, to settle the audit
qualifications in the Statutory Audit report of this assignment.
10. Reporting
After finalization of Audit, the Statutory Auditors shall submit Audit Report on the
Accounts Audited.
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GENERAL
Auditor would be given access to all Books of Accounts, Procurement documents, Legal
documents, Approval/Sanction letters/notes, and all other documents and information which
they think necessary for the purpose of audit. The auditors may make specific
observations with respect to the efficiency of financial procedure, the accounting system and in
general, the administration and management of the organization.
11. TIME PERIOD FOR ENGAGEMENT
The selected Chartered Accountant firm will be required to provide the above mentioned
services as Statutory Auditors initially for the accounting year i.e, 2019-20 and will be renewed
further for next 2 years depending upon the satisfactory performance, on mutually agreed
terms.
12. PRE-QUALIFICATION CRITERIA OF THE CA FIRM
The bids of only those firms will be considered, which satisfy the following eligibility criteria:
a. The Chartered Accountant Firm should be registered with The Institute of Chartered
Accountants of India (ICAI) and have Income Tax Permanent Account Number (PAN) and GST
Registration
b. The firm should have been in operation for minimum 10 years after its registration and at
least 5 years experience in Audit of Annual Accounts of Central Autonomous Bodies / Public
Sector Undertakings/Statutory Bodies and Filing of Returns of Income Tax
c. The average gross profession fee received / earned by the firm in the last 3 financial years
(2015-16, 2016-17 and 2017-18) must be equal to or more than Rs.50.0 lakhs per annum
d. The Chartered Accountant firm should have at least 5 partners. The audit firm shall have a
minimum of 7 full time chartered accountants of which at least 5 should be full time partners/
exclusively associated+ partners. Four should have minimum continuous association of 5 years
each and one with a minimum continuous association of one year. The remaining two could be
either exclusively associated+ partners or CA employees. There should be at least one year
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continuous association for both exclusive partners and CA employees. Four of the partners
should be FCAs. Also, at least two of the partners should have minimum 15 and 10 years
experience in practice.
e. In addition to the partners, the firm should have minimum 5 Nos. of Article Clerk including and
other experienced staff performing audit / accounting work in addition to the Partners.
f. In order to avail expertise of the Statutory Auditors it should be ensured that the firm was not
been appointed during last three years in the Institute Headquarters, Regional Council and
Chapters, if appointed, they shall not be considered for re-appointment.
4. PAYMENT TERMS
a. The professional fee will be Rs.3,30,000/- (Rupees Three lakh Thirty Thousand only) plus
applicable Taxes plus out of pocket expenses, if any for the entire contract period. For
Consolidation of Accounts, Rs.2, 200/- per Region and Rs.825/- per Chapter plus applicable taxes
will also be paid. Payment shall be made against invoices on completion of the audit and
submission of audit report. No proposal for variation would be allowed during the contract
period.
b. Taxes as per Income Tax Act / Rules will be deducted at applicable rates from all payments
made by the Institute.
5. SUBMISSION AND EVALUATION OF THE TENDER
5.1 Submission of tender
Interested firms meeting all the pre-qualification criteria as mentioned in Point-3 above may
submit their offer in the prescribed Annexure / sub-Annexure of this tender.
(i) Annexure-A duly filled Pre-qualification-cum-Technical Bid along with all supporting
documents duly signed with Seal of the authorized Partner and should be submitted in one
sealed envelope super scribed as `PRE-QUALIFICATION AND TECHNICAL BID for Tender No.
ICAI/STAT AUDIT/01/2019-20.
(ii) The tender should reach the following address latest by 15:00 hours of 31st December 2019.
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The HOD (Finance) ,CMA Bhawan, 12, Sudder Street, Kolkata-700016
(iii) The Institute reserves the right to accept or reject any, or all the offers received or cancel the
bidding process at any time prior to award of contract, without assigning any reason.
(iv) The firm should not be blacklisted or banned by any of the government department of PSU
(Self attested affidavit on stamp paper of Rs.100 to be given in this regard by the partner of the
firm).
(v) The senior partner has to be present at the Office of the Institute for finalizing the audit and
has to hold periodic meetings with HOD (Finance). He will also attend Finance Committee and
Council Meeting of the Institute, if required. No out of pocket expenses will be paid for such.
Other partners and other qualified professionals will spend all their stipulated man days at site.
6. Marking System: The criteria for selection of the Statutory Auditor would purely on marking
system. The highest value of points would be awarded the job and incase of tie the firm having
more experience would be selected as Statutory Auditors for the year 2019-20.
The following criteria for marking system are stated as follows:
Sl Particulars Points Fixed Maximum Point
no
1 Place /Location of the firm 10
(i) Head Office at Kolkata/ Delhi/Mumbai 5
and Chennai
(ii) Offices at both Kolkata and Delhi 5
2 Number of Partners 15
(a) 5 partners 5
(The audit firm shall have a minimum of 7
full time chartered accountants of which at
least 5 should be full time partners/
exclusively associated+ partners. Four should
have minimum continuous association of 5
years each and one with a minimum
continuous association of one year. The
remaining two could be either exclusively
associated+ partners or CA employees.
There should be at least one year
continuous association for both exclusive
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partners and CA employees. Four of the
partners should be FCAs. Also, at least two
of the partners should have minimum 15
and 10 years experience in practice.
(b) Above 5 Partners 2.5 mark each from 6th 10
partner for each additional partner
maximum to 10 points
3 Number of Qualified Assistants employed 5
with the Firm
18-20 3
Above 20-25 4
25 and above 5
( These would exclude typists,
stenographers, computer operators,
secretary/ies and sub-ordinate staff )
4 Age of the Firm 15
0.5 point for every calendar year
( Counted from the date of constitution of
the firm with one full time FCA or date of
joining of the firm by the existing partner
having the longest association with the firm
whichever is later )
5. The Firm must have carried out at least 2 15
Statutory Audits in Public
Sector/Autonomous Bodies funded by
GOI/Statutory Bodies during the preceding
financial year i.e 2018-19
The firm should have statutory audit
experience of 5 years of the Public Sector
Undertakings (either Central or State
Government undertaking). While calculating
such experience ,more than one assignment
given to a firm during a particular year or
more than one year's statutory audit (audit
in arrears ) assigned to the firm will be
reckoned, as one year experience only, for
the purpose of counting such experience.
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6. No. of Statutory Audits conducted in Public Marks
Sector/Autonomous Bodies/Statutory
Bodies
2 5
3 to 6 8
7 to 10 10
Above 10 15
7. Experience in statutory auditing in 5
Corporates/MNC
No. of Years Marks
3 to 5 3
5 and above 5
8. Average Turnover of the firm during the 15
preceding 3 financial years ( i.e.2015-
16,2016-17 and 2017-18 respectively )
Average Turnover (in lakhs ) Marks
100-200 lakh 3
200-300 lakh 6
300-400 lakh 9
400-500 lakh 12
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Above Rs.500 lakh 15
9. Empanelled with Government 5
Agencies/Departments/Ministries like C &
AG
(if yes 5 marks )
10. Conducted Internal Audit or Similar 5
engagements in CA/ICSI/Universities of
Repute/Autonomous Bodies in last financial
year i.e.2018-19
11. At least two full time partners of the firm or 5
its paid full time Chartered Accountants
must possess CISA/ISA qualification
12. CISA/ISA Qualified Employees 5
1 point each and Maximum of 5 points for 5
employees
Total Points 100
The definition of exclusive association+ will be based on the following criteria:
a. The full time partner should not be a partner in other firm/s.
b. He should not be employed full time/part time elsewhere.
c. He should not be practising in his own name or engaged in practice otherwise or engaged
in other activity which would be deemed to be in practice under Section 2 (2 ) of the
Chartered Accountants Act, 1949.
d. The qualified assistants working under the firm should mention the name and
membership number along with the Institute.
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ANNEXURE-A
Sl. No. Particulars Details Firm Strength and
Capacity
1. Chartered Accountant Firm Name
& Address of
the Firm
Name and
address of the
Authorized
Partner (s)
Telephone
No(s) with
STD Code
Mobile No (s):
e-Mail ID:
(Submit copy of supporting document
regarding address)
2. Prequalification Criterion Mention Registration Number and Date of
a) The CA Firm should be Registered Registration
with the Institute of Chartered (Submit copies of the
Accountants of India (ICAI) for registration certificates and constitution
minimum 5 years and must certificate generated online from The
possess permanent account Institute of Chartered Accountants of India)
number (PAN) under Income Tax PAN NO of the CA Firm (Submit copy)
and registration number under GST Registration No.
GST. (Submit Copy)
b) Average Gross Professional Fees Average Gross Professional Fees received/
received / earned by the CA Firm earned
for the last 3 (three) years Details to be provided as per SUB-
i.e.(2015-16, 2016-17 and 2017-18) ANNEXURE A-1.
ending on 31st March, 2018. (Submit proof of professional fee received)
Must be equal to or greater than
Rs.50 lakhs
c) The Firm should have at least 5 No. of Central Autonomous Bodies/ Public
years experience in Audit of Sector Undertakings/Statutory Bodies where
Annual Accounts of Central similar services were provided in the last 5
Autonomous Bodies / Public Sector years.
Undertakings/Statutory Bodies Details to be provided as per SUB-
under an Act of Parliament and ANNEXURE A-2.
Filing of Returns of Income Tax (Attach copy of works Orders as evidence)
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d) CA Firm should have minimum 5 Partners:-
(Three) partners FCA :
ACA :
Submit the details of the Chief Functionaries
of the CA firm as provided in SUB-
ANNEXURE-A3
e) Numbers of professionals and No. of Article clerks and other professionals
other staff on payroll of Firm performing audit/accounting work (in figures
and words) along with their name,
membership number and the Institute from
where they have passed.
Certified that the above particulars are correct. In the event of any information found to be
incorrect, be it at any time, The Institute of Cost Accountants of India is at liberty to reject the
proposal/work awarded to this CA Firm.
Date: Signature:
OFFICE SEAL: Name:
Designation
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SUB-ANNEXURE: A1
Details of CA Firm's professional Income
(Gross Professional Fees received/earned)
Rupees in lakhs
Particulars Financial Year Financial Year Financial Year Average
2015-16 2016-17 2017-18 Annual
Gross
Professional
Fees received/
Earned
(Attach audited Profit & Loss Account of the firm along with copy of Income Tax Return)
Date: Signature:
OFFICE SEAL: Name:
Designation
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SUB-ANNEXURE: A2
Details of CA Firm's Experience of Similar Services during the last 5 (five) years
SI. Name of the Name of the Name of the Nature of Details of the
No. Assignment Assignment Client the Supporting
(Start date/ Assignments Documents
End date) (Please provided
and period specify the
of work work
involved as
detailed in
scope of
work)
1.
2.
3.
4.
Furnish the copy of the documentary evidence/Purchase Order received from any such Company
along with audited Profit and Loss Account of that Company in support of the information
provided above.
Please attach additional sheets, if required.
Date: Signature:
OFFICE SEAL: Name:
Designation
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SUB-ANNEXURE A-3
(On Firms Letter Head)
Undertaking
I/We the following partners of M/s. , Chartered
Accountants do hereby jointly and severely verify and declare
(i) that the particulars given are complete and correct and that if any of the
statements made or the information so furnished in the application form is
later found not correct or false or there has been suppression of material
information, the firm would not only stand disqualified from allotment but
would be liable for disciplinary action under the Chartered Accountants Act,
1949 and the regulations framed there under;
(ii) that the firm, or partners has not been debarred or cautioned by ICAI during
the last five years, (if debarred, give details);
(iii) that individually we are not engaged in practice otherwise or in any other
activity which would be deemed to be in practice under section 2 (2) of the
Chartered Accountant Act, 1949;
(iv) that the constitution of the firm as on 1 st April of the relevant year shown is
same as that in the constitution certificate issued by the ICAI.
Sl. No. Name of the Partner Status Membership PAN No. Signature of
(ACA/FCA) Registration No. partner
Date: Signature:
OFFICE SEAL: Name:
Designation:
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