THE TAMILNADU INDUSTRIAL INVESTMENT
CORPORATION LIMITED
(A Government of Tamilnadu Undertaking)
No. 692, Anna Salai, Nandanam, Chennai 600 035
Telephone No.: 044-2433 1203
Website: www.tiic.org
Request for Proposal (RfP)
For Concurrent Audit of
Operations of TIIC Branch
Offices at various locations (9 Nos)
And at Head Office
RfP for Concurrent Audit - Page 1 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Critical Information Summary
Last date for submission of Proposal in response to the Request for
Proposal (RfP) : January 30, 2019 (by 5.00 PM)
One hard copy need to be submitted in sealed cover labelled (top of
the envelope) "Proposal/ Application for Concurrent Audit of
Operations of _________ Branch Office/ Head Office" at the
following address. On top of the envelope, clearly mention the name of
the BO/Head Office for which the applicant has applied, as detailed
below:
Proposal / Application for Concurrent Audit of Name of the BO/Head Office
To,
The General Manager (Internal Audit)
Tamilnadu Industrial Investment Corporation Limited
No.692, Anna Salai, Nandanam,
Chennai 600 035.
Telephone: (044) 24331203
Email: internalaudit@tiic.org
From:
For queries and clarifications regarding the RfP, please feel free to
contact us at the above address/telephone number/e-mail id.
Last date for requesting any clarifications: January 25, 2019 (by
5.00 PM). Please note that all the information desired needs to be
provided with the Proposal. Proposal with incomplete information is
liable to be rejected.
The Proposals / Applications will be opened as per the following
schedule at the address as indicated above. It would be the bidder's
responsibility to depute one representative for the opening of bids. No
separate communication in this regard will be sent to the bidders.
Date and Time of
S. No Name of the Branch
opening the proposals
1 Chennai 31/01/2019, 11.00 AM
2 Tiruvallur 31/01/2019, 11.30 AM
3 Tambaram 31/01/2019, 12.00 Noon
4 Coimbatore 31/01/2019, 12.30 PM
5 Tirupur 31/01/2019, 02.30 PM
6 Erode 31/01/2019, 03.00 PM
7 Kurichi 31/01/2019, 03.30 PM
8 Nagercoil 31/01/2019, 04.00 PM
9 Hosur 31/01/2019, 04.30 PM
10 Head Office 31/01/2019, 05.00 PM
RfP for Concurrent Audit - Page 2 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
1. Introduction and Disclaimers
1.1. Purpose of RfP
The purpose of RfP is to shortlist experienced professional firms /
Limited Liability Partnerships (LLP) / Limited Companies of Chartered
Accountants, for undertaking Concurrent Audit of Operations of Branch
Offices (BOs) at the following locations and of the Head Office of TIIC at
Chennai.
Table I
Loan O/s as on
S. Regional Branch
31.12.2018 (Rs.
No. Office Office (BO)
in Crore)
1 Chennai Chennai 79.79
2 Chennai Tambaram 106.71
3 Chennai Tiruvallur 160.26
4 Salem Hosur 53.07
5 Coimbatore Coimbatore 74.31
6 Coimbatore Kurichi 51.51
7 Coimbatore Tirupur 61.34
8 Coimbatore Erode 82.56
9 Tirunelveli Nagercoil 79.40
10 -- Head Office --
1.2. Information Provided
The Request for Proposal document contains statements derived from
information that is believed to be relevant at the date but does not
purport to provide all the information that may be necessary or desirable
to enable an intending contracting party to determine whether or not to
enter into a contract or arrangement with TIIC. Neither TIIC nor any of its
employees, contractors or advisors gives any representation or warranty,
express or implied, as to the accuracy or completeness of any information
or statement given or made in this document. Neither TIIC nor any of its
employees, contractors, or advisors has carried out or will carry out an
independent audit or verification exercise in relation to the contents of
any part of the document.
1.3. Disclaimer
Subject to any law to the contrary, and to the maximum extent permitted
by law, TIIC and its officers, employees, contractors and advisers
disclaim all liability from any loss or damage (whether foreseeable or not)
suffered by any person acting on or refraining from acting because of any
information including forecasts, statements, estimates or projections
contained in this RfP document or contents ancillary to it whether or not
RfP for Concurrent Audit - Page 3 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
the loss or damage arises in connection with any negligence, omission,
default, lack of care or misrepresentation on the part of TIIC or any of its
officers, employees, contractors or advisers.
1.4. Costs to be borne by Applicants
All costs and expenses incurred by Applicants in any way associated with
the development, preparation, and submission of responses, including
but not limited to the attendance at meetings, discussions,
demonstrations, etc. and providing any additional information required
by TIIC, will be borne entirely and exclusively by the Applicant.
1.5. No Legal Relationship
No binding legal relationship will exist between any of the Applicants and
TIIC until execution of a contractual agreement.
1.6. Applicant's obligation to inform itself
The Applicant must conduct its own investigation and analysis regarding
any information contained in the RfP document and the meaning and
impact of that information.
1.7. Evaluation of Offers
Each applicant acknowledges and accepts that TIIC may in its absolute
discretion apply selection criteria specified in the document for
evaluation of proposals for shortlisting / selecting the eligible Concurrent
Auditor(s). The RfP document will not form part of any contract or
arrangement, which may result from the issue of this document or any
investigation or review carried out by a Recipient.
1.8. Maintaining Secrecy and Confidentiality
The applicant shall be liable to maintain secrecy and confidentiality of all
the information / data / operations, etc. of TIIC.
1.9. Errors and Omissions
Each applicant should notify TIIC of any error, omission, or discrepancy
found in this RfP document.
1.10. Acceptance of Terms
An Applicant will, by responding to TIIC for RfP, be deemed to have
accepted the terms of this Introduction and Disclaimer.
1.1. Lodgment of Proposal in response to RfP
1.1.1. Proposal / Application submission:
Proposal / Application submission is required to be done by
January 30, 2019 (by 5.00 PM) as under:-
RfP for Concurrent Audit - Page 4 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
One Hard copy should be submitted at the following address in
sealed single envelope superscribed at the top of the envelope as
"Proposal / Application for Concurrent Audit of Operations of
_____ Branch Office/Head Office".
The General Manager (Internal Audit)
Tamilnadu Industrial Investment Corporation Limited
No.692, Anna Salai, Nandanam,
Chennai 600 035.
Telephone: (044) 24331203
Email: internalaudit@tiic.org
Proposal must be submitted before the aforementioned closing date.
· Faxed / e-mailed copies of any submission are not
acceptable and will be rejected by the Corporation.
· All Proposals, with all relevant attachments must be
submitted in a sealed envelope, as detailed above.
The person(s) signing the Proposal shall initial all pages of the
Proposal. The Proposal shall contain no erasures or overwriting except
as necessary to correct errors made by the applicant, in which case
corrections shall be initialed by the person(s) signing the Proposal.
Along with the Proposal/ Application, this RfP with all annexures shall
be signed in each page by the authorised signatory.
If the Proposal / submission does not include all the required
information / documents or is incomplete, the proposal is liable to be
rejected.
All submissions, including any accompanying documents, will become
the property of TIIC. Applicants shall be deemed to license, and grant
all rights to TIIC to reproduce the whole or any portion of their
submission for the purpose of evaluation, to disclose the contents of
the submission to other Respondents and to disclose and / or use the
contents of the submission as the basis for any resulting RfP process,
notwithstanding any copyright or other intellectual property right that
may subsist in the submission or accompanying documents.
1.1.2. Proposal / Application Validity Period
The proposal must remain valid and open for evaluation according
to their terms for a period of at least six (6) months from the time
the RfP closes on the deadline for lodgment of Proposal.
1.1.3. Cost of RfP Document
No cost has been prescribed for the RfP Document
RfP for Concurrent Audit - Page 5 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
1.1.4. One Proposal / application per applicant
Applicant can submit Proposal/ application for BO/HO, where
applicant has regular set-up, either Head Office or Full Fledged
Branch Office, at respective nearest locations of TIIC Branches / Head
Office.
AS A MATTER OF POLICY, TIIC WILL ENGAGE THE SERVICES OF
FIRM / LLP / COMPANY FOR CARRYING OUT CONCURRENT
AUDIT OF ONE BO ONLY, AT A TIME. ACCORDINGLY IN CASE, IF
APPLICANT APPLIED FOR MULTIPLE BRANCHES AND FOUND
SUITABLE, THEY MAY BE CONSIDERED FOR ONE BRANCH ONLY.
Firms already engaged with TIIC:
· TIIC shall engage the services of a firm / LLP / Company for
carrying out Concurrent Audit of one BO only or HO
Departments at a time. Accordingly, in case, the applicant has
been already engaged by TIIC in any of its branches, such
applicant will not be eligible for the proposed assignment.
· In respect of such firms / LLP / Company after completion of
specific period (continuous three years for a branch/HO), a
cooling period of one year would be observed for considering the
services of the CA firm again in the same Branch Office.
However, the CA firm / LLP / Company could be considered for
award of contract to carry out concurrent audit of any other
Branch Office of the Corporation.
1.1.5. Late Applications
Any proposal / application received after the deadline for submission
of the proposals / applications will be treated as "Late Application"
and such late applications shall not be considered at all for
competitive consideration.
1.2. Requests for Proposal
Applicants are required to direct all communications related to this RfP,
through the Nominated Point of Contact person:
Contact 1. Mr. G. Srinivasan, General Manager (Internal Audit)
2. Mr. M. Rangaraju, Senior Manager (Internal Audit)
Email internalaudit@tiic.org
Telephone (044) 24331203
TIIC may, in its absolute discretion, seek additional information or
material from any applicant after the RfP closes and all such information
RfP for Concurrent Audit - Page 6 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
and material provided must be deemed to form part of that Applicant's
response.
Applicants should provide details of their contact persons, Fax,
Telephone, email and full address(s) to ensure that replies /
communications regarding RfP could be conveyed promptly.
If TIIC, in its absolute discretion, deems that the originator of any
question will gain an advantage by a response to the question, then TIIC
reserves the right to communicate such response to all Applicants.
TIIC may, in its absolute discretion, engage in discussion or negotiation
with any Applicant (or simultaneously with more than one Applicant)
after the proposal closes to improve or clarify any response.
1.3. Notification
TIIC will notify all short-listed Applicants in writing as soon as
practicable about the outcome of their proposal. TIIC is not obliged to
provide any reasons for any such acceptance or rejection.
1.4. Disqualification
Any form of canvassing / lobbying / influence / query regarding
shortlisting, status, etc. will be a disqualification.
2. About TIIC
2.1. Tamilnadu Industrial Investment Corporation Ltd. [TIIC] is a Premier
Financial Corporation established in the year 1949 and functions as
a State Financial Corporation in Tamilnadu. TIIC fosters industrial
development in Tamilnadu by providing financial assistance to
industries for purchase of land, machinery and construction of
buildings. TIIC provides financial assistance at competitive interest
rates for setting up of new industrial units and for expansion /
modernisation / diversification of existing industries in Tamilnadu.
It also offers loan for service sector projects such as hotels, hospitals
and tourism related projects.
The Corporation provides its services through a network of Branch
Offices located all over Tamilnadu. Detailed information on the
functions of the Corporation is provided on the website, www.tiic.org.
2.2. While TIIC provides assistance to micro, small, medium and large
enterprises, about 90% of the assistance goes to the micro, small
and medium enterprises [MSME] sector and thus, acts as a catalyst
for industrial promotion in the State of Tamilnadu.
RfP for Concurrent Audit - Page 7 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
3. Project Particulars
3.1. Project Objective and Scope of Operations of TIIC's Branches
and HO Departments
The functions of TIIC's Branch Office(s) include credit dispensation under
various loan schemes and other day to day operations of the Corporation.
The selected Chartered Accountant Firms / Companies would undertake
concurrent audit of operations of the Branch(es) on daily / regular basis
and based on their findings also regularly suggest measures to improve
the functioning of operations of Branch of TIIC. Assignment would also
include verification and confirmation on the adequacy of internal controls
and IT system for sustaining operations. The staff deputed by the firm /
LLP / Company of Chartered Accountants for carrying out the audit
should be qualified and experienced in the area of work.
With regard to TIIC's select Head Office Non-operational departments viz.,
Human Resources, Estate, Funds & Resources and BCL (GST Matters),
the transactions will have to be audited by external auditors, on
concurrent basis. Further, there are operational departments like
Projects, Loan Monitoring & Rehabilitation / Recovery & Subsidy
Departments which are also vital departments of Business & will also
need to be audited.
The objective and scope of the Concurrent Audit to be undertaken in the
above centres / branches are as under:
A. Objective of Concurrent Audit
The main objectives of the concurrent audit are as follows:
i. To supplement the efforts of the Corporation in carrying out
simultaneous internal checks.
ii. To reduce the interval between transactions and its independent
verification.
iii. To verify whether the system and procedures has been properly
complied with and implemented in the Corporation.
iv. To perform substantive checking of various areas of the TIIC's
operations and to make rectification of the deficiencies in the
earliest possible time.
v. To detect and arrest revenue leakage, immediately.
vi. To bring an ongoing improvement in the standard of internal
controls and processes by identifying areas of weaknesses &
deficiencies and energizing the process of rectifications.
vii. To give advisory opinion in the areas of operations of the
Corporation, as and when it is necessary.
RfP for Concurrent Audit - Page 8 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
viii. Verifying whether sanctions for advances and disbursement thereof
is obtained from competent authority.
ix. Scrutinizing the completeness of documents submitted for availing
advances and other facilities.
x. Ensuring compliance of laid down systems, procedures and
policies.
xi. Examining books of accounts, records and / or registers to ensure
that they are maintained in accordance with the prescribed
systems / reconciled with general ledger.
xii. Physical checking of stocks financed under working capital scheme
at relevant places.
xiii. Detection and arresting of leakage of income, if any.
xiv. To follow up with authorities to ensure timely rectification of
irregularities reported with regard to the operations of the branch
and rectified on the spot / during audit period itself.
xv. Verify prompt, timely and regular submission of the periodical and
statutory returns.
xvi. Any violation of procedure is brought to light.
xvii. Reporting any irregularity in working which may result in financial
or other loss to the Corporation.
xviii. Feedback on regulatory compliances.
xix. Any other areas on the operations of the Corporation which are
vital, in nature.
B. Scope for all Term Loans / Bill Finance
i. Whether the transactions or decisions are within the policy
parameters laid down by the Corporation.
ii. Sanction and Disbursement of loans & advances are within the
policy parameters laid down by the Corporation. All the loan
disbursements are to be checked / verified by the concurrent
auditors before actual disbursements and all the disbursement
notes need to be signed by the concurrent auditors.
iii. Verify whether pre-sanction/pre-disbursement/post-disbursement
visits are undertaken and reports are available on record.
iv. Sanctions / Disbursements are within the delegated authority.
v. Sanctions / Disbursements do not violate the instructions or policy
prescriptions of RBI / SIDBI / other regulators.
vi. Compliance to RBI guidelines relating to defaulters list / caution
advice / CIBIL list / fraudulent borrowers list, KYC / AML, etc. is
done satisfactorily.
vii. DoP (Delegation of Power) has been exercised properly and Post
Sanction Reporting, wherever applicable, is sent to Post Sanction
Reporting Authority.
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The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
viii. Verify whether Legal clearance certificate has been issued by the
Legal Officer.
ix. Pre-disbursement conditions are duly complied with; deviations
made, if any, are within the guidelines issued, from time to time.
x. Verify the end use of term loan disbursed by the Branch for the
purpose it is meant for (based on documents and inspection
reports of Branch officials).
xi. Whether charge has been created over securities offered.
xii. a) Physically verify the assets in respect of all disbursed cases.
b) Undertake inspection of units on a sample basis to cover 1
performing unit, 1 NPA unit and 1 unit with loan above Rs.1.00
crore per month or such number of units as may be reasonably
prescribed by TIIC then and there.
xiii. Whether in all cases, where the statements/ documents (stock
statement, project completion report, final list of machinery,
Acknowledgment of Debt, Annual report, etc.) are not received,
even after a reasonable time, prompt action is taken by the branch
to get the same.
xiv. To ensure that all assets hypothecated and mortgaged to the
Corporation are adequately insured as per the extant guidelines of
the Corporation and are in the joint names / with Bank clause and
the policies are renewed on timely basis.
xv. Verify whether there is any mis-utilisation of the loans and whether
there are instances indicative of diversion of funds.
xvi. Verify whether there are any borrowal accounts (other than those
reported by the branch) which are showing symptoms of sickness
and can be classified as NPAs, if so, ascertain the reasons thereof
and analyse the steps taken by the branch in the matter.
xvii. Verify whether the classifications of loan assets of the Branch have
been done properly and income recognition norms have been
followed up, as per the Corporation's guidelines and procedure/
RBI norms by the respective branch.
xviii. Verify whether subsidy claims are as per the respective scheme
and lodged timely with Govt. authorities by the Branch through
Head Office.
xix. Verify whether claims submitted by Branch to CGTMSE are in
time.
xx. Verify whether guarantee fee for coverage under CGTMSE are
collected and deposited with Credit Guarantee Trust Fund.
xxi. Verify the credit ratings and submission of a certificate in writing
that the ratings are found to be correct. The discrepancies, if any,
should be brought to the notice of the Corporation.
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The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
xxii. Verify the updation of CIBIL data and report the status in the
monthly audit report.
xxiii. Verify the details of flow of applications, time taken for appraisal of
Proposals, pending applications, etc. with Project Department of
the BO concerned and report the status in the monthly audit
report.
xxiv. Verify whether assets have been verified by the BO within 30 days
from the date of classification of account as NPA.
xxv. Verify the proposals covered under any other Special Scheme of the
Government / other Agencies and ensure whether the requisite
documents prescribed for the purpose have been obtained and kept
on record.
xxvi. Whether GST has been correctly collected on various incomes like
investigation fees, upfront fee, etc., at applicable rates?
xxvii. Whether GST has been correctly paid on various expenditures like
Legal Fees, Valuation Fees, etc., at applicable rates?
xxviii. Whether details of GST collected / paid has been sent to H.O. every
month as per the prescribed formats?
C. Scope for Working Capital Cases
i. To ensure that margin on current assets; Rate of Interest &
Drawing Power is considered / fixed as per the terms of sanction.
ii. To ensure that the loans have not been made operational beyond
the validity period, without approval of the competent authority for
extension of the validity period.
iii. To ensure that the periodic visits to the borrower units have been
undertaken as per the Scheme guidelines. The auditor may also
undertake some sample visits along with BO officials on random
basis and / or on the basis of criticality of the account.
iv. To ensure that the monthly stock statement from the borrower is
obtained on time and filed.
v. To scrutinize the monthly stock statements to ensure correct
valuation to match the loan outstanding.
vi. To ensure that the inventories as mentioned in the Stock statement
furnished by borrowers are correct and as per the books of
borrower.
vii. To ensure that the CA certified book debt statements from the
borrowers are obtained on half-yearly basis.
viii. To ensure that stocks are adequately insured as per the extant
guidelines of the Corporation and are in the joint names / with
Bank clause and the policies are renewed on timely basis.
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The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
ix. To ensure that financial statements are obtained, wherever
applicable and indicate the observations on the general business
operations / profitability, etc.
x. To ensure that stock audit is undertaken, wherever applicable and
to ensure that the compliance of stock audit observations are met.
xi. To check the correctness of interest / penal interest.
xii. To examine the overdue accounts closely (in terms of operations in
the account, Stock & Book Debt statement, Credit Summation,
Cheque Bouncing, etc.).
xiii. To ensure compliance of extant guidelines, in case of multiple
current accounts and / or multiple banking arrangement.
D. Additional Scope for Bill Finance Scheme Cases
i. To verify discounting of bills / retirement of bills, on daily basis.
ii. To ensure that the visits to the vendors units have been
undertaken as per the extant guidelines of the Corporation. The
auditor may also undertake some sample visits along with BO
officials on random basis and / or on the basis of criticality of the
transactions.
iii. To verify, due date-wise, Live Bills under Bill Finance Scheme.
iv. To undertake visit to purchaser companies to verify the invoices
under BFS on sample basis if necessary.
v. Safe custody verification as per extant guidelines.
E. Scope for H.O. Departments
i. Maintenance of files, registers and other records.
ii. System of keeping old records and their easy retrieval.
iii. Destruction of old records as per extant guidelines.
iv. Approval of the bills on various expenditures incurred as per DoP.
v. Adequate coverage of Insurance on various assets and its validity.
vi. Entering into AMC for various assets as per norms.
vii. Claiming Refinance from SIDBI by furnishing necessary details as
per their requirement.
viii. Mobilisation of Fixed Deposits is as per the extant guidelines.
ix. Monitoring of transfer of funds from & to branches.
x. Investment of surplus funds at H.O., if any to avoid loss of income.
xi. Compliance of the observations of AG Audit / Statutory Audit /
SIDBI Inspection without delay.
xii. Repayment of bank loans / FDs / Bonds on due dates.
xiii. Provisioning of NPAs as per RBI guidelines.
xiv. Payment of Salary, bonus and other staff related payments.
xv. Monitoring of the expenditure budget vis-a-vis actual every month.
xvi. Filing of TDS and other returns before the due dates.
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The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
xvii. Collection of GST data of the previous month from all BO / FO on
or before the 5th of every succeeding month through e-mail for
consolidation work.
xviii. After draft return filing, Payment of GST amount on or before 20th
of every succeeding month through Funds & Resources department
by way of RTGS at our Indian Bank.
xix. Reconciliation of Annual Accounts with GST returns at the end of
year and filing of annual return.
xx. Arrangement of GST audit for the year on completion of that
financial year.
xxi. Scrutinizing the Relaxation notes regarding Special / General
Conditions, Relaxation of Security, Change of Supplier, Direct
payments to Supplier, CIBIL score relaxation, Age relaxation, 10%
overdue relaxation, etc.
xxii. Whether undrawn balances were reviewed at the each month end.
xxiii. Monitoring the pendency of petitions forwarded through Hon'ble
CM's Cell, Amma Call centre & Govt. of India Public Grievance
Portal and others.
xxiv. Scrutinizing the OTS Proposal received from the branches.
xxv. Monitoring of Slippage of Units.
xxvi. Analysis of Loans Portfolio.
xxvii. Monitoring of BFS loans, Joint Finance cases, etc., periodically.
xxviii. Checking the correctness of Change in Management /
Constitution, Reschedulement, TLSP Clearances, Upset Price
fixation, Substitution of Collateral Security.
xxix. Whether subsidy claims made with the Government is as per
Government policy and claims are made in time.
xxx. Subsidy reimbursement received from Government is properly
appropriated and accounted to the respective units.
xxxi. Wherever subsidies disbursed but recovered from the units on
account of ineligibility has been surrendered to the Government.
The above areas of operations are illustrative and not exhaustive.
3.2. The CA Firm will have to submit the following reports to the
Management:
(i) Monthly reports as per the format prescribed by TIIC, from time
to time, covering Branch's/HO Departments day-to-day
operations including its core functions such as credit appraisal,
pre-sanction and post-sanction supervision mainly under Term
Loan, Working Capital and other operations, compliance to the
terms and conditions of sanction, post disbursement,
supervision, documentation, review/renewal of limits, bills
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The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
finance, KYC norms, monitoring of business risks and compliance
of Delegation of Powers etc.
(ii) Monthly reports covering comments on adherence to regulatory,
internal policy, procedure, guidelines, compliance of Delegation of
Powers and areas of audit as indicated at para 3.1.
(iii) Any other related reports as may be required by TIIC from time to
time.
(iv) The CA firm / LLP / Company shall be accountable, on its part,
for wrongly verifying any document or auditing disbursement
notes or such other important documents, based on which the
Corporation can / will take appropriate decisions.
The above reports with regard to operations mentioned above relating to
the respective Branch / HO Departments including area of credit
dispensation and other day to day operations should be submitted in the
following manner to the Branch / Regional Offices / HoDs concerned.
S. No. Name of the Branch To whom reports to be submitted
1 Chennai Branch Manager of the concerned
2 Tambaram Branch, Regional Manager of the
3 Tiruvallur Concerned Branch, and HoD of Internal
4 Hosur Audit Department at Head Office.
5 Coimbatore
6 Kurichi
7 Tirupur
8 Erode
9 Nagercoil
10 Head Office, Chennai HoD of the respective Department and
HoD of Internal Audit Department at
Head Office.
Note: Copy of the report should be made available in soft copy and hard
copy forms within one week of the reporting period for which the report
pertains.
A detailed checklist and other operating guidelines will be provided to the
concurrent auditors. Necessary training / consultation required would be
provided to them for enhancing the quality of the audit. They would be
made aware of the guidelines and circulars issued subsequent to
commencement of assignment and having impact on the concurrent
audit, to keep them abreast of the changes in the operational and
regulatory guidelines.
TIIC will prescribe structured formats for the audit reports and also
stipulate the time limits for submission of the reports. The audit formats
RfP for Concurrent Audit - Page 14 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
would be reviewed on annual basis. The firm / LLP / Company should
strictly adhere to the format and the time limit. TIIC may prescribe
different periodicity for different reports of the same branch.
3.3. The selected Chartered Accountant Firms /LLPs / Companies would
initially be assigned the contract for a period of one year. The
Contract can be renewed for two more years at the discretion of TIIC
with increase in professional fee not more than 10% annually,
after one year provided performance is found to be satisfactory on
review. The proposed assignment would be subject to periodical
review at the discretion of TIIC and is liable to be terminated at any
time, if not found satisfactory, by giving short notice.
4. Selection process for the Branches / HO Departments
The Proposals will be assessed on the following Selection process:-
Technical Evaluation
a) The Applicant is required to submit the details of its proposal in a
sealed envelope. The envelope should be superscribed "For Technical
Evaluation" for said Concurrent Audits and should contain detailed
statement giving the various technical particulars of the proposal
covering aspects of the Applicant like name and location, year of
establishment, names of its partners, staff, their qualification /
experience, registration number of the firm / LLP / company, details
of ICAI membership / Certificate of Practice details, methodology
proposed and all other such relevant particulars in the format given in
Annexure I.
b) A pre-evaluation meeting would be held to clarify on points, if any, if
desired by the intending applicants.
c) After the expiry of last date for submission of proposal / application,
the envelope containing the compliance on the "Technical Evaluation"
would be opened in respect of all the applicants to verify the
compliance of the applicants with the prescribed Technical Evaluation
requirements.
d) The Technical Evaluation of proposal / Application would be carried
out by an In-house Committee constituted by TIIC at Head Office,
Chennai. The list of technically qualified applicants would be short
listed.
Technical Evaluation Procedure of the applicants for Branch / HO
Departments Operations
The technical capabilities of the applicants with regard to Concurrent
audit operations of the branch offices / HO Departments would be
evaluated based on the following criteria and weightage:
RfP for Concurrent Audit - Page 15 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Eligibility Criteria
While selecting the CA Firms to carry out Concurrent Audit in the
branches and Head Office Departments of the Corporation, preference
will be given to such firms satisfying the following criteria:
Sl. No. Criteria
i. Experience Minimum 3 years of concurrent audit
experience in Financial Institutions / Public Sector Banks,
mainly in the area of credit dispensation (with documentary
proof).
ii. It should be a Partnership firm / LLP / company of
Chartered Accountants where partners / directors are CAs
and should have valid registration Certificate of Practice from
ICAI (proof of registration to be furnished).
iii. CA firm / LLP / company should have suitable
Infrastructural facilities, including office set up, adequate
manpower, which are specialised in the area of audit of
branch operations, mainly in the area of credit dispensation
and other day-to-day operations of the Corporation.
Competence and qualification of key professional staff, which
shall carry out the assignment in a time bound manner,
Particulars about the firm / LLP / company, including
details of partners/directors, their qualifications and
experience to be furnished.
iv. CA firm / LLP / company should have regular set-up, either
head office or full-fledged branch offices, at respective
locations (locally) of TIIC Head Office / branches. If audit
firms satisfying this criteria is not available in Local centres,
relaxation will be done at the discretion of the Corporation.
v. CA firm / LLP / company should be willing to accept /
undertake additional assignments, if any, required by the
Corporation.
Without compliances of the above mentioned pre-requisites, the CA
Firms / LLPs / Companies will not be eligible to apply.
Rating Chart
The CA firms / LLPs / Companies would be ranked in the order of merit,
keeping in view of the past experience, reputation, infrastructure, etc.,
subject to satisfying the minimum eligibility criteria prescribed, as
indicated below in the table.
RfP for Concurrent Audit - Page 16 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Maximum
S.
Criteria Marks
No.
(Weightage)
1 · Chartered Accountant firm / LLP / company with year of
establishment
· Knowledge and experience in carrying out audit of
Branch Office(s) operations mainly in the area of credit
50
dispensation and other day to day operations.
Experience Upto 5 years 0 Marks
Above 5 years and upto 10 years 30 Marks
More than 10 years 50 Marks
2 Be a Partnership firm / LLP / company of Chartered
Accountants with
10
More than 3 CA partners / directors 10 Marks
3 CA Partners / Directors or less 5 Marks
3 Previous track record of carrying out such audits in other
Financial Institutions / Public Sector Banks mainly in the
area of credit dispensation and other day to day
operations of the Corporation (with documentary proof)
10
More than 5 years 10 Marks
Five years and below but not less than
three years 5 marks
Less than 3 years 0 Marks (Not eligible)
4 Whether the firm / LLP / company is empanelled with RBI 10
5 Availability of suitable Infrastructural facilities including
office set up, adequate manpower, who are specialized in
the area of audit of Branch Operations mainly in the area
of credit dispensation and other day to day operations of
the Corporation. Competence and qualification of key 10
professional staff, who shall carry out the assignment in a
time bound manner. Particulars about the firm / LLP /
company including details of partners / directors, their
qualifications and experience may also be furnished.
6 Regular set-up at respective locations (locally) of TIIC
HO/branches
10
having Head Office locally 10 Marks
having Branch Office locally 5 Marks
Maximum Score 100
Preference would be given to the firms / LLPs / companies where the
partners / directors themselves were ex-bankers with requisite
experience and exposure and the firms having qualified Information
System Auditor (CISA/DISA) with necessary exposure of systems audit.
RfP for Concurrent Audit - Page 17 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
The selected CA Firms / LLPs / Companies would be required to comply
with the following requirements:
· The firm / LLP / company shall ensure that the audit firm / LLP /
company or any sister / associate concern, is not conducting the
statutory audit of the Corporation or any of its branches.
· The firm / LLP / company shall execute undertaking of fidelity and
secrecy on its letterhead in the format prescribed by the Corporation.
· The firm / LLP / company shall ensure that the audit is carried out
in a professional manner and in case of any misconduct &
negligence, the Corporation is free to report the matter to ICAI.
· The firm / LLP / company shall ensure that it will not sub-contract
the audit work assigned to any outside firm / LLP / company or
other persons, even though such persons are qualified Chartered
Accountants.
· The CA firm / LLP / company would do the audit work themselves
and would depute experienced employees and further ensure
continuity of the member(s) of the audit team for smooth audit
functions at BO/HO. The team shall visit the branch/HO on daily
basis. The partner(s) / director(s) shall visit the branch/HO
themselves at least once in 15 days or as and when required by the
Corporation.
· A declaration shall be furnished by the firm / LLP / company that
credit facilities availed by the firm or LLP or company or partners of
the firm / LLP or directors of company or firms or LLPs or companies
in which they are partners or directors, including any facility availed
by a third party for which the firm or its partners or directors are
guarantor(s) have not turned or are existing as non-performing
assets, as per the prudential norms of RBI. In case the declaration is
found incorrect, the assignment would get terminated; besides, the
firm being liable for any action under ICAI Rules.
· Any other terms and conditions of the assignment would be decided
by the Corporation, on a case-to-case basis, with the approval of the
Managing Director of the Corporation.
Other applicable conditions relating to Concurrent Audit
· As a matter of policy, TIIC will engage the services of a firm / LLP /
company for carrying out Concurrent Audit of one BO only or Head
Office at a time. Accordingly, in case the CA firm / LLP / company
has been already engaged by TIIC in any of its branches or HO, such
CA firm / LLP / company will not be eligible for another assignment.
· After completion of specific period (continuous three years i.e. 1 year
+ 2 years), cooling period of one year would be observed for a firm /
RfP for Concurrent Audit - Page 18 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
LLP / company to become eligible for fresh appointment in the same
BO/HO. This will be purely at the discretion of the Corporation and
no rights whatsoever will accrue to the firm / LLP / company for
such appointment.
· The concurrent auditor should adhere to the audit coverage strictly
as per the scope as may be decided by the Corporation, from time to
time.
· The concurrent auditors should not undertake any other activities /
assignment on behalf of the branch or HO, without obtaining the
clearance from Internal Audit Department, in writing.
· The concurrent auditors would not give any rating or grade to the
Branch except when desired by TIIC.
· Necessary arrangements would be made for providing space,
workstation and access to systems (viewing rights only) to the
concurrent auditors for ensuring smooth conduct of the audit. This
would be the responsibility of the Corporation. However, Branch In-
charge / HoD, Internal Audit Department will take responsibility for
arrangement of the same.
· The Concurrent Auditors will be granted read only access to systems
at Branch Office / Head Office.
· The firm / LLP / company should continue to satisfy the eligibility
norm for appointment of Chartered Accountants as Concurrent
Auditors as prescribed by the Corporation, from time to time.
· The assignment would be subject to periodical review at the
discretion of the Corporation. The Corporation reserves the right to
terminate the assignment for Concurrent Audit at any time, without
assigning any reasons whatsoever. In such an event, the firm shall
take such steps, as are necessary to bring the services to an end in a
cost effective, timely and orderly manner.
· Format of Concurrent Audit Report to be furnished by the external
auditors will be given. Necessary training / consultation required
would be provided to the Concurrent Auditor for enhancing the
quality of the audit. They would be made aware of the guidelines and
circulars issued subsequent to commencement of assignment and
having impact on the concurrent audit, to keep them abreast of the
changes in the operational and regulatory guidelines by the BO /HO
officials.
· The Internal Audit Department will stipulate the time limits for
submission of the reports as per the prescribed format.
· The audit report format would be reviewed usually on an annual
basis or in case of need at the discretion of TIIC by Internal Audit
RfP for Concurrent Audit - Page 19 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Department. The firms / LLPs / companies should strictly adhere to
the report format and the time limit.
· The Concurrent Auditors shall seek any clarification / guidance from
Internal Audit Department for smooth conduct of the Concurrent
Audit.
· The concurrent auditor shall not be allowed to carry any mass
storage device such as pen drive/flash drive or any lap top inside the
branch / Head office premises as these devices will not be required
for the job. Concurrent auditors shall be provided with computer
system with disabled USB ports by the concerned branches / Head
office.
· The concurrent auditors are required to plan the audit such that it
results in gradual shortening of the interval between a transaction
and its examination by an independent person. The concurrent
auditor shall perform substantive checking in key areas and
emphasis should be on `on the spot' rectification of deficiencies. The
concurrent auditor shall daily go through all the vouchers and books
of the branch for the previous day and identify areas to be
scrutinised in detail.
· The Concurrent Auditor should maintain and keep back up papers
in support of observations made.
· The Concurrent Auditor shall observe the Do's & Don'ts given in
Annexure in order to have proper relationship with Auditee Branch /
Department.
5. Fixed Fee Structure
The fee structure / inclusion / exclusion of the BOs / Head Office under
this mechanism are based on the outstanding portfolio of the BO. The
award of contract to CA firm / LLP / Company to undertake concurrent
audit will be as per fee structure determined by the Corporation from
time to time. The present fee structure, based on the outstanding
portfolio size, is indicated below:
Outstanding portfolio / Volume of Fee payable per month
portfolio (excluding applicable GST)
Above Rs.50 crores to Rs.100 crores Rs.35,000/-
Above Rs.100 crores to Rs.150 crores Rs.45,000/-
Above Rs.150 crores Rs.60,000/-
For Head Office Rs.45,000/-
Note: Maximum 10% enhancement in remuneration may be
considered at the discretion of the Corporation, if the contract is
renewed, after one year, provided the performance is found
satisfactory during review.
RfP for Concurrent Audit - Page 20 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
No out of pocket expenses or traveling allowance / halting allowance
would be paid to the concurrent auditors for carrying out the audit.
However, the GST and applicable taxes would be paid as applicable from
time to time in addition to the basic fees. The payment to the concurrent
auditors would be subject to deduction of tax at source as per both the
Income Tax Act and Goods and Services Act at appropriate rates.
The Outstanding Portfolio of the BOs are given at Table I vide Page
No. 3.
6. Guidelines & Instructions
i. TIIC will endeavour to make available all relevant information in the
RfP. In case of need of any further information or clarification during
the application period, the applicant must contact only the Contact
Officers named above. On no account should the Applicants
communicate directly with any other TIIC personnel. Failure to
comply with this requirement may result in the disqualification of
the applicant from this competition.
ii. Government Tax
Applicants are responsible for establishing the status of the Services for
the purpose of any government tax including GST, etc. to Government.
iii. Alterations to Application
Any manuscript or other alteration to the proposal / Application must be
countersigned and dated by the person submitting the proposal /
application.
iv. Letters and Declaration to Accompany Applications
The proposal / Application must be accompanied by a letter on letter
head of the Firm / LLP / Company showing the full registered name(s),
registered office address of the applicant. It should be signed by a person
of suitable authority to commit the applicant to a binding contract.
v. Packaging and Delivery of Applications
Applications must be delivered in a double sealed envelope clearly labeled
with the following:
1. Project Title
2. Application Due Date
3. Applicant's Name
TIIC accepts no responsibility for the premature opening of any
incorrectly marked Applications.
RfP for Concurrent Audit - Page 21 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Applications must be received at Internal Audit Department, The
Tamilnadu Industrial Investment Corporation Limited, No.692, Anna
Salai, Nandanam, Chennai 600 035, for the attention of The General
Manager by 5.00 PM on the due date. Late applications will not be
accepted under any circumstance and will be returned unopened. No
special pleadings will be accepted. Faxed or e-mailed applications will
not be accepted.
vi. Conflict of Interest
Applicants must disclose in their application details of any
circumstances, including personal, financial and business activities that
will, or might, give rise to a conflict of interest; this includes any sub-
contractor, if they were awarded this contract. Where applicants identify
any potential conflicts they should state how they intend to avoid such
conflicts. TIIC reserves the right to reject any application which, in TIIC's
opinion, gives rise or could potentially give rise to a conflict of interest.
vii. Disclosures
The applicant must disclose:
a. If they are OR have been the subject of any proceedings or other
arrangements relating to bankruptcy, insolvency or the financial
standing of the applicant including but not limited to the appointment of
any officer such as a receiver in relation to the applicant's personal or
business matters or an arrangement with creditors or of any other
similar proceedings.
b. If they are OR any of the applicant's staff have been convicted of,
or are the subject of any proceedings, relating to:
· a criminal offence or other offence, a serious offence involving
the activities of a criminal organisation or found by any
regulator or professional body to have committed professional
misconduct.
· corruption including the offer or receipt of any inducement of
any kind in relation to obtaining any contract, with TIIC, or any
contracting authority.
· failure to fulfill any obligations in any jurisdiction relating to the
payment of taxes or social security contributions.
Disclosure extends to any entity in the same group of the applicant
(including but not limited to parent subsidiary and sister companies, and
companies with common shareholders whether direct or indirect and
parties with whom the applicant is associated in respect of this
application / proposal).
RfP for Concurrent Audit - Page 22 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
If an applicant or related entity or any individual discloses details of any
previous misconduct or complaint, TIIC will seek an explanation and
background details from them. At the sole discretion of TIIC and
assessment as to whether the Applicant will be allowed to submit a
application, decision will then be made by TIIC.
viii. Indemnity
The successful applicant shall exercise reasonable skill, care and
diligence in the performance of the assignment and indemnify and keep
TIIC indemnified in respect of any loss, damage or claim howsoever /
whatsoever arising out of or related to breach of contract, statutory duty
or negligence by the firm / LLP / Company or its staff, agents or sub-
contractors in relation to the performance or otherwise of the Services to
be provided under this Contract.
ix. Assigning to Others
The successful applicant shall not, without the prior written consent of
TIIC, assign or transfer or cause to be assigned or transferred, whether
actually or as the result of takeover, merger or other change of identity or
character of the CAs, any of its rights or obligations under the Contract
or any part, share or interest therein. Upon any such assignment or
transfer, this engagement may forthwith be terminated by TIIC.
x. Termination
TIIC may, at its sole discretion and at any time terminate the Contract
and inform the CA Firm / LLP / Company of TIIC's decision by written
instruction to that effect. In the event of the Contract being so
terminated, the firm / LLP / Company shall take such steps as are
necessary to bring the Services to an end, (including terminating any
sub-contracts placed by the firm / LLP / Company) in a cost effective,
timely and orderly manner. No further correspondence will be
entertained in this regard.
@@@@@
RfP for Concurrent Audit - Page 23 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure I
Technical Evaluation for Concurrent Audit of Branch Operations
A) Audit Firm / LLP / Company Details:
S. No. Requirements Compliance Remarks
1 Name of the Chartered Accountant Firm / Yes/No
LLP / Company with Date of establishment
2 Knowledge and experience in carrying out Yes/No
audit of Branch Operations mainly in the
area of credit dispensation and other day to
day operations.
3 Be a Partnership firm / LLP / Company of Yes/No
Chartered Accountants of which 2 partners
or directors should be Practicing Chartered
Accountants. Details of each partner /
director including experience, qualification
etc. and their Registration number with CA
Institute (furnish a detailed list of all the
partners / directors).
4 Minimum three years of previous track Yes/No
record of carrying out such audits in other
Financial Institutions / Public Sector /
Private Sector Banks mainly in the area of
credit dispensation and other day to day
operations of the Financial Institution /
bank (furnish documentary proof).
5 Valid registration / Certificate of Practice Yes/No
from the Institute of Chartered
Accountants of India for the firm/ company
/ LLP (furnish documentary proof).
6 Whether the firm / LLP / Company is Yes/No
empanelled with RBI (furnish
documentary proof)
7 Availability of suitable infrastructural Yes/No
facilities including office set up, adequate
manpower who are specialized in the area
of audit of Branch Operations mainly in the
area of credit dispensation and other day to
day operations of the Financial Institution
/ bank. Competence and qualification of
key professional staff who shall carry out
the assignment in a time bound manner
RfP for Concurrent Audit - Page 24 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
(furnish a detailed list of all the skilled /
semi skilled employees / staff).
8 Regular set-up, either Head Office or full- Yes/No
fledged Branch Offices at respective
locations (locally) of TIIC branches (furnish
the details regarding branch offices, if
any).
9 The firm / LLP / Company shall ensure Yes/No
that the audit firm / LLP / Company or
any sister / associate concern is not
conducting the statutory audit of TIIC.
10 The firm / LLP / Company shall agree to Yes/No
execute undertaking of fidelity and secrecy,
Declaration of True Information, Letter of
Acceptance and Declaration of Non-
disqualification on its letterhead in the
format (as enclosed) prescribed by the
Corporation, if the contract assigned.
11 The firm / LLP / Company shall ensure Yes/No
that the audit be carried out in a
professional manner and in case of any
misconduct & negligence, the Corporation
is free to report the matter to ICAI / RBI
under the guidelines from time to time.
12 The firm / LLP / Company shall ensure Yes/No
that it will not sub-contract the audit work
assigned to any outside firm / LLP /
Company or other persons even though
such persons are qualified Chartered
Accountants.
13 A declaration to be furnished by the firm / Yes/No
LLP / Company that credit facilities availed
by the firm / LLP or its partners or
Company or its directors or firms or LLPs
or companies in which they are partners or
directors including any facility availed by a
third party for which the firm / LLP or its
partners or company or its directors are
guarantor(s) have not turned or are existing
as non-performing assets as per the
prudential norms of RBI. In case the
declaration is found incorrect, the
RfP for Concurrent Audit - Page 25 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
assignment would get terminated besides
the firm being liable for any action under
ICAI / RBI guidelines.
14 The firm / LLP / Company must submit a Yes/No
undertaking that the firm / LLP /
Company does not have any professional
relationship with any of the borrowers of
TIIC nor will it in future accept professional
relationship with any of the borrowers of
TIIC during the period during which the
firm / LLP / company acts as the
concurrent auditor for TIIC.
Note: All the relevant details & documentary evidences are to be
furnished. The above is only a format. Information may be
submitted in additional sheets.
B) Details of Audit of Branch Operations mainly in the area of
credit dispensation done in banks / FIs
1. Details of Statutory Branch Audits of various banks' branches /
Financial Institutions
Year of Audit / Period
Name of the Bank
(From - To)
S. No. / Financial Branch
[Data required Since
Institution
establishment of your firm]
2. Details of Concurrent Audits of various banks' branches /
Financial Institutions
Year of Audit / Period
Name of the Bank
(From - To)
S. No. / Financial Branch
[Data required Since
Institution
establishment of your firm]
3. Details of Statutory Central Audits of various Banks / Financial
Institutions
Year of Audit / Period
Name of the Bank
(From - To)
S. No. / Financial Branch
[Data required Since
Institution
establishment of your firm]
RfP for Concurrent Audit - Page 26 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure II
Declaration
(to be furnished in the letter head of the firm / LLP / Company)
We hereby declare that the information submitted above is complete
in al l respects and true to the best of our knowledge. We understand that
in case any discrepancy or inconsistency or incompleteness is found in
the information submitted by us, our application is liable to be rejected.
Date: Authorised Signatory
RfP for Concurrent Audit - Page 27 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure III
DECLARATION OF FIDELITY AND SECRECY
(on the letter head of CA firm)
I, Managing partner/Director of _______________________________, Chartered
Accountants firm / LLP / company (firm name) duly authorised by the firm /
LLP / company (hereinafter referred to as "firm") on behalf of the firm, hereby
declare that the firm will faithfully, truly and to the best of our skill and ability
execute the duties required of the firm as Concurrent Auditor of The Tamilnadu
Industrial Investment Corporation Limited (TIIC) and which properly relates to
task entrusted to the firm by TIIC of conducting of concurrent Audit of
_______________, the Branch/HO of TIIC.
I, on behalf of the firm, also undertake and declare that the assignment of
conducting Audit entrusted to the firm will be done only by appropriately
professionally qualified auditors employed by our firm and under any
circumstances, the firm shall not, except with the express written consent of
TIIC entrust the work to any other audit firm(s) on contract or on any other
basis.
I, on behalf of the firm, further declare and undertake, that the firm will
not, except under legal compulsion or as a statutory obligation (under due
information to TIIC), either during or after completion of any transaction, project
or assignment entrusted to the firm, disclose to any person not legally entitled
thereto, any information relating to the affairs of TIIC or any information
disclosed / furnished by TIIC in connection with the assignment or the
information collected / obtained during the course of the assignment as
Concurrent Auditor of TIIC which shall include any copy, abstract, sample,
note, information/data held on systems or module thereof (confidential
information). I, on behalf of the firm, further undertake that our obligations
respecting disclosure and confidentiality shall continue to be binding even after
the completion of the assignment.
I, on behalf of the firm, also declare and undertake that the firm shall not
commercially use or disclose any Confidential Information or any materials
derived there from to any other person or entity other than persons in the direct
employment who have a need to have access to and knowledge of the
Confidential Information solely for the Purpose authorized above. The firm shall
take appropriate measures prior to disclosure to such employees to assure
against unauthorized use or disclosure.
I, on behalf of the firm, further undertake to disclose to TIIC in case, the
firm happens to be the auditors to the concerned borrower unit/ associate
concern, whose concurrent transaction/case is to be audited by the firm on
behalf of TIIC.
Signature & Seal
Registration No. of ICAI
Place:
Date:
RfP for Concurrent Audit - Page 28 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure IV
(Proforma Letter of acceptance to
be obtained on firm's Letter head)
Date: __/__/____
To
The General Manager,
Internal Audit Department,
The Tamilnadu Industrial Investment Corporation Ltd,
No. 692, Anna Salai, Nandanam,
Chennai 600 035.
Dear Sir,
Sub: Concurrent Audit of your _________ Branch/HO Depts
With reference to your letter No. TIIC/HO/IA/2018-19 dated __.__.____
on the subject matter, we do hereby convey our acceptance to undertake
Concurrent audit of your above mentioned branch / HO Departments on
the terms and conditions mentioned therein.
As desired by you, we send herewith the Declaration of Fidelity and
Secrecy and Declaration regarding non-disqualification etc., in the
enclosed proforma.
Yours faithfully,
(Chartered Accountants)
Name of Signatory &
Rubber Stamp of Firm
Encl: as above.
RfP for Concurrent Audit - Page 29 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure V
Letter of confirmation regarding
Non-disqualification of Audit firm / LLP / Company
(to be submitted on letter head)
To
The General Manager,
Internal Audit Department,
The Tamilnadu Industrial Investment Corporation Ltd,
No. 692, Anna Salai, Nandanam,
Chennai 600 035.
Dear Sir,
Sub: Concurrent Audit of your _______ Branch / HO reg.
With reference to your letter No. TIIC/HO/IA/2018-19 dated __.__.____
we confirm the following regarding our eligibility/qualification for
appointment as Concurrent Auditors:-
i) None of our partners / directors / shareholders is an officer /
employee of your Corporation.
ii) None of our partners or Associates firms or sister concern or
Branch office, is presently assigned with Statutory Audit of your
Corporation.
iii) Our Firm / LLP / Company and our partners / directors /
shareholders are not otherwise disqualified to accept the audit
in terms of Section 141 of the Companies Act, 2013.
iv) We also confirm that we are full time practising Chartered
Accountants and are not employed elsewhere.
v) We undertake not to subcontract the audit work assigned to us
to any other third party or person / firm / LLP / company.
vi) We do/will not have any professional or commercial relationship
with the borrowers of the branch/HO Departments which we
are auditing.
vii) We also confirm that we will not give room for disqualification
during the course of audit for any of the reasons mentioned
above.
Yours faithfully,
Name of Signatory &
Rubber Stamp of Firm
RfP for Concurrent Audit - Page 30 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
Annexure VI
DO'S AND DON'TS FOR CONCURRENT AUDITORS
Do's
The Concurrent Auditors should
1. Pre-inspection study of the branch / Head Office by going through
the related reports and pre requisites documents.
2. Prepare proper audit plan based on 1 above.
3. To maintain utmost secrecy with regard to inspection program and
its findings.
4. Auditors to display team spirit and avoid misunderstandings /
arguments in the presence of auditees.
5. Inspection of the branch / Head office departments has to be
commenced before commencement of business hours to verify the
physical cash, security arrangement etc.
6. To act in a normal friendly fashion and help to improve normal
working of the branch / head office.
7. Discuss his/her findings with branch / HO department officials on
daily basis and try to rectify the defects then and there itself.
8. Give auditees a chance to express their opinion while discussing the
issues. Getting proper explanation in a co-operative atmosphere will
save precious time.
9. In case of difference of opinion with auditee, the auditor should first
discuss with the leader of his/her team. Further discussion with
Regional Manager of concerned branch / HoD of concerned
department, if required, may be made. Besides, discussion if
required with the HoD, Internal Audit Department, Head Office can
also be made for guidance / instruction.
10. If the inspecting officer comes across any information which causes
him/her to suspect any element of fraud, gross negligence, gross
incompetence or similar unfavorable actions or tendencies, he/she
should report the matter immediately.
11. The members of the team should keep continuous dialogue with the
leader of the team on important findings and be guided by his
advice.
RfP for Concurrent Audit - Page 31 of 32
The Tamilnadu Industrial Investment Corporation Limited
No. 692, Anna Salai, Nandanam, Chennai 600 035
12. Auditor should maintain a neat appearance and a courteous
manner.
Don'ts
1. Auditor need not act overly reserved or unfriendly in order to
maintain his/her independence as an inspecting officer. A forbidding
attitude on his/her part may well cause others to adopt the same
attitude towards him/her. This can adversely affect the work
entrusted to the inspecting officer.
2. Auditor should not get involved in heated argument with the auditee.
3. Auditor should not give orders to auditee and seek requirements
from the officer assigned to assist him on a particular job. The
concerned officer would issue the necessary orders to their staffs if
he/she accepts inspector's suggestions and recommendations.
4. Auditor should not delay the submission of audit report.
5. Auditor should not discuss sensitive matters of the auditee with
others.
RfP for Concurrent Audit - Page 32 of 32
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