NATIONAL FERTILIZERS LIMITED
(A Government of India Undertaking)

CORPORATE OFFICE
A-11, Sector-24,

NOIDA-201301 (U.P.)

REGISTERED OFFICE
SCOPE Complex, Core-III,

7, Institutional Area,
Lodhi Road, New Delhi-110003

Notice Inviting Expression of Interest (EOI) for Empanelment of Firms of Chartered / Cost
Accountants as Stock Verifiers for conducting Physical Verification (PV) Audit of Inventory and
Tangible Assets in NFL‟s Registered office at New Delhi, Corporate Office, Central Marketing
Office located at Noida, Manufacturing Units located at Nangal, Panipat, Bhatinda, Vijaipur for
the Financial Years 2021-22, 2022-23 & 2023-24.

EOI NO: NFL/INTERNAL AUDIT /2021-22/2
EOI Date 05.03.2021
EOI Beginning Date & Time 08.03.2021 (09.45 AM)
EOI Closing Date & Time 07.04.2021 (05.30 PM)

A complete duly filled set of EOI documents are to be submitted under sealed cover to the
ED(IA), CO, NFL at A-11, Sector-24, Noida 201301 (U.P.) on or before EOI Closing date & time.

NFL/INTERNAL AUDIT /2021-22/2 Page 1 of 35
Application format
1. Name of the firm
2. Firm registration No.
3. Registration Date
4. No. of years of firm experience

(cut-off date is 31.03.2020)
5. Firm‟s PAN (attach copy)
6. Firm‟s GST registration No. (attach copy)
7. Complete Office Address (including Branches, if any)

8. E-Mail ID of the Firm

9. The name, contact number & email ID of the Partner

who shall issue the Internal Audit Report

10. Manpower Details

(i) Details of Partners

S.N. Name of Partner Location Date of Specialization/ Supporting
(HO/Branch) Joining in Area of Partner Documents
indicating Firm Page No.
City Name

NFL/INTERNAL AUDIT /2021-22/2 Page 2 of 35
(ii) Details of Other Audit Staff

S.N. Name of Audit Staff Qualification Location (HO/Branch) Supporting
indicating City Name Documents
Page No.

(iii) Experience of Stock verification in any other nitrogenous based fertilizer manufacturing
plant/Ammonia and Urea manufacturing plant of a Company/Organization/Co-operative
Sector

S. Company/Organization/Co- Type of Period of Plant Supporting
N. operative‟s Details Plant assignment Production Documents
Capacity Page No.

Name CIN

(iv) Experience of Stock verification in any other manufacturing plant of a company (other
than plant mentioned above at sl. No. (iii))

S. Company‟s Details Type of Period of Plant Supporting
N. Plant assignment Production Documents

Name CIN Capacity Page No.

NFL/INTERNAL AUDIT /2021-22/2 Page 3 of 35
v) Professional Receipts of the firm for the FY 2019-20

(Attach certified copy of firm Financial Statements)

11. Preference of ranking for Unit/Office

S.N. Unit/Office Preference of Ranking in number
for PV audit of Inventory &
Tangible Assets Assignment

1. Vijaipur

2. Nangal

3. Bathinda

4. Panipat

5. Regd. Office at Delhi,
CO & CMO at Noida

One rank should be given for each above mentioned unit/office.

We hereby confirm that our Firm has not taken any deviation from the specified terms &
conditions of the EOI documents. A copy of complete EOI documents duly signed and sealed
on all pages as a token of acceptance of all terms and conditions as mentioned in attached
annexure A.

We confirm that that our Firm will execute the PV of inventory & assets assignment at NFL‟s
Registered office at New Delhi, Corporate Office, Central Marketing Office located at Noida,
Manufacturing Units located at Nangal, Panipat, Bhatinda, Vijaipur from our nearest office/
branch office as mentioned in the copy of certificate of incorporation from ICAI.

It is certified that our audit firm is not debarred/disqualified/black listed by any
regulatory/statutory body or Government entity.

Signature of Partner with Seal of the Audit firm
Date :

NFL/INTERNAL AUDIT /2021-22/2 Page 4 of 35
Annexure A

1. Eligibility Criteria for empanelment of Stock Verifiers firms for Physical Verification
Audit of inventory & Tangible assets:

The applicant firms meeting the following criteria shall be evaluated in the manner indicated
below:

S. Particulars Points per Points Supporting
No. 6 documents
1. No. of years of Criteria Copy of
certificate of
firm experience 5-10 years-2 incorporation
from ICAI
(minimum 5 years) points

10-15 years-4
points

More than 15
years-6 points

2. No. of Partners 2 point for FCA -do-

partner and 1 point 8

for ACA partner

3. Experience of Stock verification in Appointment
letter issued by
any other nitrogenous based Company
/Organization/
fertilizer manufacturing plant 12 Co-operative
showing the
/Ammonia and Urea 4 points per name of plant.
assignment
manufacturing plant of a

Company/Organization/Co-

operative in preceding five FYs

(i.e. FY2015-16, 2016-17, 2017-

18, 2018-19 & 2019-20).

(No. of Assignments)

4. Experience of Stock verification in Appointment
any other manufacturing plant of a
company (other than plant letter issued by
mentioned above) in preceding
five FYs (i.e. FY2015-16, 2016-17, 3 points per Company
2017-18, 2018-19 & 2019-20). assignment
9 showing the
(No. of Assignments)
name of plant.

5. Professional Receipts of the firm 25-50 lakh – 2 Statement of Un-

(Minimum 25 lakh) points audited

More than 50 /Audited Profit &

Loss signed by
Lakh-100 lakh-4 6 the
member

points stating

More than 100 membership no.
lakh-6 points of such firm.

NFL/INTERNAL AUDIT /2021-22/2 Page 5 of 35
6. Offices Situated in following Copy of
certificate of
locations: Per Location – 3 9 incorporation
from ICAI.
1. Delhi including NCR point
2. Chandigarh/ Mohali / Panchkula 50
3. Bhopal /Indore /Gwalior

Total Points

2. Selection Criteria for empanelment & appointment of Stock Verifiers firms and Other
Terms & Conditions

i) The top 15 audit firms in descending order securing 30 points (including ties, if any) and
above awarded as per selection criteria mentioned above shall be considered for
empanelment.

The work shall be assigned to the empanelled firm in the following ranking:

Location of Unit/Office Ranking
1
i) Vijaipur 2
3
ii) Nangal 4
5
iii) Bathinda

iv) Panipat

v) Regd. Office at Delhi and CO & CMO at Noida

If any of the firm does not accept the assignment offer for any unit/office, assignment
offer shall be given to the next firm of the empanelled list (i.e. from ranking 6 onwards)
irrespective of the ranking of unit/office. However, in case of tie of the awarded points;
preference would be given to the firm which was incorporated earliest.

Assignment shall be awarded to one applicant for one location only. However, any
firm from the empanelled list can be assigned any one or two unit/office at the discretion
of the NFL if no. of empanelled firms is less.

ii) NFL, at their discretion, shall evaluate the Assignment of work for the FY 2021-22 &
2022-23 subject to satisfactory performance of the firms based on the following
evaluation criteria:

S.N. Evaluation Criteria Point Obtained

1. Commencement & Completion of Quarter/ 5 –With in time
Period wise PV as per time schedule mentioned 4- 1 week delay
at Para-7 or revised schedule as agreed 3- Two week delay

mutually. 2-Three week delay

1- Four week delay
0- More than four week

2. Qualitative discussion of significant observations Up to 5

of PV with Head of Unit/CO/CMO and Finance
Head in each phase.

3. Submission of phase wise final report as per 5 –With in time

time schedule mentioned at Para-7 or revised 4- 1 week delay

schedule as agreed mutually. 3- Two week delay

NFL/INTERNAL AUDIT /2021-22/2 Page 6 of 35
4. Quality of phase wise PV Audit report 2-Three week delay
Total 1- Four week delay
0- More than four week
Up to 5
20

Stock Verifiers firms shall obtain minimum 12 marks during the evaluation of assignment
given in previous year (i.e. FY 2021-22 & FY 2022-23) for renewal of assignment for
next year (i.e. FY 2022-23 & FY 2023-24).

3. Categories of items to be verified:

Categories of items Periodicity Location

Raw Materials, Quarterly basis ending Respective Plants i.e. Urea Silo &
30th June, 30th Sep., Bagging Plant, Ammonia Storage
Packing Materials 31st Dec. ,and 31st Tanks, Coal Yard, Storage Tanks
March. (Sulphuric Acid, Caustic soda, Diesel,
and Chemicals. Petrol etc.), Bentonite Sulphur, Bio-
(Annexure-1(A)) fertilizer, Industrial Products(Sodium
Finished & Semi- Nitrate, Sodium Nitrite etc.), Neem Oil
Finished goods. Tanks etc.

Stores, Spare Parts Once a year for Different custodies in Main Stores.
& Valuable Scrap. Valuable Scrap (100%)

Moveable Assets in and Stores and Spare
Plant and Offices. Parts More than Rs.
50,000/- (100%), Rs.

20,000-50,000 (50%)

& Less than

Rs.20,000/- (33%).

(Annexure-1(B))

Once a year Administrative Building, Various Plant
Offices in Factory and Guest House ,
Other Offices in Township

4. Scope & Coordination of Work:
(i) Scope of work and related terms & conditions of Inventory are detailed below:-
A.1) Categories of major inventory items is given at Annexure-1(i).

A.2) The verifier will submit a report based on a test check that maximum/minimum and
reordering levels are fixed realistically.

B.1) Before taking up the verification of a particular category of stock items, the physical
verifier would compare the balances of the Bin Card with that of the Price Stores Ledger

NFL/INTERNAL AUDIT /2021-22/2 Page 7 of 35
i.e. inventory of 30.09.2021. The discrepancies, if any, be reported to the Officer In
charge (Stores).

B.2) For this purpose the Stock Verifiers would be provided with the computer output of
inventory holding as on 30.09.2021 (along with soft copy). They would be required to
mark ‘D’ indicating discrepancy against the items where balances in the computer
statement are found to be at variance with the balance as per Bin Card. After such link
up they would be required to hand over the complete statement of each category to the
Officer In charge( Stores) after appending a certificate at the end as under:

Certified that based on our link up of the balances in this statement with those in Bin

Card, we find no. of items with variation, which have been marked ‘D’ in this

statement.

C) The job involves verification of various items by counting, weighing, measuring, dip
method/level indicators and volume method etc.

D) The stock verifier would be required to verify only those items, which exist in the inventory
as on 30.09.2021.

E) The physical verification work would be coordinated as under:

Categories of Items Designated Officers

Bulk Materials Dy. General Manager (Production) or his nominee

Stores and Spares Parts Incharge Stores & Head of F&A Deptt.

Moveable Assets in Plant and Head of Admn. Deptt. (HR) and Head of F&A Deptt.
Office/Guest House

(ii) Scope of work and related terms & conditions of Moveable Assets are detailed below:-

A) The broad list of items of movable assets of Corporate Office, Central Marketing Office
and Regd. Office is given at Annexure-2(i). However, Finance & Accounts Department,
of Corporate Office & CMO shall provide the list of movable assets appearing in the
Assets Register as on 31st Dec. 2021.

B) Physical balances will be compared and reconciled with the records maintained by the
custodian department of the assets verified and also with assets ledger maintained by
Finance & Accounts Department.

NFL/INTERNAL AUDIT /2021-22/2 Page 8 of 35
5. (i) Method of Verification of Inventory :

A.1) The verifier will not take Bin Card balance before actual physical verification.

A.2) The stock verifier will physically count/weigh, measure and take dip readings of the
stocks for which required assistance will be given by Store Keepers and will record the
same in physical verification slip(as per Annexure-1(ii)). Separate stock taking slip for
each item will be prepared in duplicate and signed both by stock verifier as well as
official in charge of the custody.

A.3) The verifier would also check the correctness of location as indicated in the Bin Card.
Shall there be a difference, an item wise list of discrepancies would be made out and
handed over to Officer In Charge (Stores).

B.1) Completing physical verification of a particular code of materials as per programme a red
line will be drawn on Bin card leaving four lines under the last entry. The space of four
lines will be utilized for the entries which are omitted in the Bin Card or to correct other
clerical mistakes in balancing etc. However, the verifier shall also put stamp/initials while
certifying the balance & indicate the physical verification slip number to enable cross -
reference.

B.2) During the process of verification of a particular category of stores, no issue or receipt
will be carried out without the prior approval of verifier. Efforts will be made to keep
issue/receipt to the minimum during the period of verification of that particular code. In
case the issue is unavoidable the voucher will be passed on to the verifier who will mark
in red ink as AST (After stock taking) or BST (Before stock taking) and sign the same.
AST would mean that the items have been counted and as such this voucher would be
posted after the physical balance has been recorded, below the red line on the Bin Card.
BST would mean the item has not been counted and the voucher may be entered above
the red line.

B.3) Before posting the slip on the Bin card, all the slips shall be arranged serially in
descending order of the code nos. This will reveal the slips having same code on more
than one slip. Wherever there is more than one slip having the same code no. the
balances of such slips should be clubbed in one slip before posting and the consolidated
total should be posted on the Bin card.

C) After the verification is completed for all items under a code, the stock taking sheet shall
be prepared from item wise slips. Bin card and physical balance as per the verification
slip will be recorded on the stock taking sheet (as per Annexure-1(iii). Separate Stock
taking Sheet will be prepared for each inventory Code, covering all the items there

NFL/INTERNAL AUDIT /2021-22/2 Page 9 of 35
under. Simultaneously balance from the Bin card will also be noted in the Stock taking
Sheet and discrepancies will be worked out. The stock taking sheet will be prepared in
triplicate. One copy of the stock taking sheet will be furnished to Head of F&A deptt.,
other copy to Incharge Stores and third copy will be retained by the Stock Verifier.
Incharge Stores will arrange to sort out these discrepancies. In the case of omission of
any issue notes /receipts vouchers/ clerical mistakes in the stock taking card, necessary
corrections will be carried out in the Stock taking Card which will be initialed by Store
Keeper and Stock Verifier.

D. 1) A final list of shortages/excesses will be prepared in the Performa (as per Annexure-
1(iv), in triplicate which will be distributed as in the case of stock taking sheet mentioned
above.

D. 2) While conducting stock verification, stock verifier shall report in the Remarks Column of
the format at annexure IV, obsolete/ unserviceable /life expired items, if any, included in
the inventory.

E) The Physical Verification of coal and finished goods in such cases will be done by the
Survey method by a committee constituted and notified by Chief Manager/Dy. General
Manager (Production) in which apart from Stock Verifiers, representatives from Civil
Engineering, Production, Stores and F&A Department will be taken. The bulk density of
each heap shall be determined by test checks and the volume of the heap will be
converted into weight based upon bulk density.

F) Certain materials are issued to the consuming department in full immediately on receipt
and remain in the custody of the consuming department. These materials are LPG and
Diesel etc. The physical verification of these items shall also be done and the
representatives of the Production Department will be associated in such cases apart
from the representative of the Stores Deptt. All other procedures as described above
shall be followed in these cases also. Physical verification of Petrol, Diesel and
Ammonia would also be conducted through a committee on the lines, required for other
bulk materials. (Refer Para E).

G) Inventory as on 30.09.2021 would be made available to Stock Verifier for linking up the
balances with the Bin Card as on 30.09.2021 of items categorized as stock items. He
would submit a report to Head of Materials deptt. with a copy to Head of F&A deptt. of
those items where there are differences for necessary rectification. While preparing the
final report as per procedure, the physical verifier would ensure that

NFL/INTERNAL AUDIT /2021-22/2 Page 10 of 35
the necessary adjustments, for the differences pointed out have been affected in the Bin
Card. Cases of non compliances be reported.

H. 1) Physical verification of all moveable fixed assets, the categories of which shall be
indicated at Annexure-1(v), shall be carried out by the Physical Verifier. Physical
balances of assets shall be noted in the stock taking sheet in triplicate as per
Annexure-1(vi), which will be signed both by the stock verifier and the representatives
of the concerned department. One copy of the stock taking sheet shall be handed over
to the In-charge of the Plant. Second copy shall be forwarded to the Accounts
Department and the third copy shall be retained by the Stock Verifier.

H. 2) Physical balances will be compared and reconciled with the records maintained by the
concerned Department of assets verified, and also with Assets Ledgers maintained by
the Accounts Department.

H. 3) Surplus, Obsolete, Unserviceable & Non-moving items included in the inventory shall be
identified and a list of the same submitted as per Annexure-1(vii).

(ii) Methodology of Physical verification of Moveable Assets:

A. Physical verification of all movable assets as per the list which shall be provided by
Finance & Accounts Department of CO & CMO as on 31st Dec. 2021, shall be carried
out by the Stock Verifiers.

B. The Physical Verifiers would depute adequate staff for timely completion of the
assignment.

C. The Physical Verifiers will compare & reconcile the physical balances with the records
maintained by the custodian departments of the assets and also with assets ledger
maintained by the Finance & Accounts Department.

D. Physical balance of assets shall be noted in the stock taking sheet, as per Annexure-
2(ii), (to be prepared in triplicate) which will be signed both by the Stock Verifiers and the
representative of the concerned department. One copy of the stock taking sheet shall be
handed over to the In-charge of the concerned department. Second copy shall be given
to Finance & Accounts Department, Corporate Office and the third copy shall be retained
by the Stock Verifiers.

E. A final list of shortages and excesses shall also be prepared in triplicate as per
Annexure-2(iii), which will be distributed as in the case of stock taking sheet mentioned
above.

6. Facilities to be provided by NFL:

NFL/INTERNAL AUDIT /2021-22/2 Page 11 of 35
a) National Fertilizers Limited would provide necessary scales, weighing machines,
measuring tapes and truck/trolley for conducting the physical verification of the stores as
and when needed.

b) Entire work force required for handling, shifting and checking and/or re-checking of the
quantities would be provided by NFL.

7. Time Schedule for Completion of work:

(i) For Inventory

The entire work of physical verification as per stipulated terms and conditions is to be
taken up and completed by 28.02.2022 except bulk materials which are required to be
verified at the end of each quarter. The final report for the completed jobs has to be
submitted by 31.03.2022 for stores, spares and moveable assets. In respect of bulk
materials for the fourth quarter of the financial year, the report is to be submitted by
15.04.2022. A copy of the final report may also be sent to the CM (IA), CO, NFL, Noida
with details in a format provided at Annexure-1(viii).

(ii) For Moveable Assets

i) The list of movable assets as on 31st Dec. 2021, required to be verified shall be
provided by Finance & Accounts Department of Corporate Office & CMO by 24th
February 2022.

ii) Accordingly, the job of physical verification shall be taken up by the Stock Verifiers in co-
ordination with the concerned officials.

iii) The final report shall be submitted by Stock Verifier by 5th March, 2022 positively to,
Head of F&A Deptt. of CO & Head of F&A Deptt. of CMO, Noida with a copy to Head of
Internal Audit Deptt., CO, Noida.

8. Deployment of Minimum Staff, Period of Working Days & Fees for conducting
Physical Verification of Inventory & Tangible Assets

S Units/ Minimum number of Annual Fees in Rs. (excluding GST) for

N Offices staff to be deployed FY 2021-22 FY 2022-23 FY 2023-24
& No. of working

days in each phase

for each Unit/Office

1 Corporate i) One Chartered/ 14,000 15,000 15,000
Office
& Cost Accountant

Central for 1 day.

Marketing ii) Two semi-qualified
persons /article
Office, Noida assistants for 2
days.
and Regd.

Office, Scope

Complex, New

NFL/INTERNAL AUDIT /2021-22/2 Page 12 of 35
Delhi

2 Vijaipur i) One Qualified 70,000 73,000 77,000
Engineer/Chartered 56,000 59,000 61,000
3 Nangal or Cost Accountant 56,000 59,000 61,000
for 1 day 59,000 61,000
4 Bhatinda
2,65,000 2,75,000
5 Panipat ii) Three semi 56,000
2,52,000
qualified persons/

article assistants for

5 days for Vijaipur

Unit and 3 days for

other Units.

Total

In addition to audit fees mentioned above, re-imbursement of Travelling, Boarding,
Lodging, Local transport expenses are given in the following manner:

Travelling Expenses Local Transport Lodging & Boarding

(for non local firms only)

To-and-fro fare limited to Local transport at the For Vijaipur /Bathinda/ Panipat &
touring station to and fro Nangal Unit:
2nd AC Rail fare will be Railway Station /Bus Stand
and Company‟s Guest The lodging will be provided in NFL
reimbursed against House/Place of Stay to guest house free of charge. The
place of work at the units partner of the firm shall be entitled
documentary proof for shall be provided by the for VIP accommodation.
company.
the journey performed by However, boarding charges in NFL
However, the local guest house will be reimbursed to
the team of auditors. transport charges at the the firm on submission of bill limited
originating station, the to Rs 250/- per audit team member
However, if Partner visits, reimbursement shall be per day and Rs 400/- for the partner
limited to Rs.800/- for per day.
he may travel by rail/own partner by Taxi and Auto
charges of Rs.250/- for For Regd. Office, CO & CMO:
vehicle and others audit team
members.
reimbursement shall be

limited to AC 1st class

rail fare.

The re-imbursement of
Travelling expenses is
subject to payment of
fare from Delhi/ Nearest
firm office to concerned
Unit/ Office or actual
whichever is lower.

The lodging & boarding charges for
partner will be Rs. 3500/- per day
and Rs. 1500/- for other audit team
members per day per person, or
actual whichever is lower

NFL/INTERNAL AUDIT /2021-22/2 Page 13 of 35
Note : The charges for Travelling Expenses and Lodging & Boarding shall be reimbursed
on submission of documentary evidence and Local Transport shall be reimbursed
on submission of self certificate provided by individual team members.

9. Payment Terms: The payment of audit fee would be made in terms of percentage
specified below on submission of final audit report and Invoice, phase-wise (as
mentioned at Para 5). The payment will be verified and released by F&A Department
of concerned Office/Units, subject to deduction of Income Tax at source as applicable.

Statutory Taxes etc.: All the other taxes or other statutory levies etc. shall be paid
extra. The payment would be released on Phase wise (for all the Units/Offices) as
under:

S. N. Quarter/ Period % of Total Fee Payable

Units at Vijaipur, Nangal, Bhatinda & Panipat

1. 1st (April to June) 20 %

2. 2nd (July to September) 20%

3. 3rd (October to December) 20%

4. 4th (January to March) 40%

Regd. Office, Scope Complex, New Delhi and CO & CMO, Noida

1. April to March 100%

The following may also be kindly ensured by Stock Verifiers firm:

i) A detail indicating the audit staff deployed their designation and the period of
assignment in each phase.

ii) Stock verifier will abide by the statutory provisions applicable to the staff to be
employed by them, such as Minimum Wages Act., Contract labour (Abolition &
Regulation) Act, Insurance cover for their staff under Workmen‟s Compensation Act,
Employees PF Act, Employees State Insurance Act and other Central/State Govt.
Acts as may be applicable from time to time. NFL will have no liability on these
accounts.

iii) Stock verifier will give proper directions to their staff not to enter in any prohibited
area in the plant. Damages to any of the property belonging to NFL due to
negligence on their part or on the part of their staff would be compensated by them.

10. GENERAL TERMS AND CONDITIONS

i) This EOI is only for the purpose of empanelment of Firms and does not

guarantee/assure allotment of Internal Audit/any other assignments.

ii) Only empanelled firms will be intimated about the decision on empanelment.

NFL/INTERNAL AUDIT /2021-22/2 Page 14 of 35
iii) The Company reserves its right to accept or reject any application(s) without assigning
any reasons thereof. The decision of NFL Management for empanelment of Firms shall
be final and binding upon the firms participating in the process of empanelment.

iv) The Physical Verifier will ensure that the information obtained in respect of the working
/operation of the NFL is maintained in strict confidence and secrecy at all times,
including after the completion of the assignment. All such information shall remain
exclusive property of NFL at all the times. A certificate towards maintaining
confidentiality is to be provided by the firm at the time of acceptance of assignment.

v) If progress/performance of the PV audit team is not found satisfactory, NFL's
management reserves the right to terminate the appointment of the Firm, without
assigning any reason whatsoever.

vi) No request for change of Office/Branch office shall be entertained during the assignment
period.

vii) The Empanelled Firm will be debarred from getting, in future, assignments in NFL in the
following cases:

a. If the Firm obtains the appointment on the basis of misrepresentation of information /
misstatement of facts at the time of submission of application/documents along with EOI.

b. The Audit Firm is found to have sub-contracted the work.
c. If the Firm does not take-up assignment in terms of the appointment letter.
d. If the Firm does not submit the Report, complete in all respects in terms of the

appointment.
e. If an applicant resorts to any frivolous, malicious or baseless complaints/ allegations with

an intent to hamper or delay the EOI process or resorts to canvassing/ rigging/
influencing the EOI process.

11. Requirements for application to be considered Valid.

i) Application should be in typed format only.

ii) Incomplete application would be summarily rejected. The application should be
unconditional. Conditional applications would be summarily rejected.

iii) The applicant is not entitled to any compensation for the expenses incurred in
connection with the preparation and submission of application.

iv) NFL takes no responsibility for delays, loss or non-receipt of documents or any letters
sent by post/courier either way and also reserves the right to reject any offer in part or
full without assigning any reasons thereof.

v) NFL shall always be at liberty to reject or accept any offer or offers or part thereof at its
sole discretion. The submission of offer shall have no cause of action or claim against
NFL for rejection of offer. The firm, whose offer is not accepted shall not be entitled to
claim any costs, charges and expenses incidental to or incurred in connection with
submission of offer or its consideration by NFL, even though NFL may opt to
modify/withdraw the terms and conditions laid down in EOI or does not accept the offer
or cancel the EOI as a whole.

NFL/INTERNAL AUDIT /2021-22/2 Page 15 of 35
vi) No Firm engaged for Physical verification of Inventory and Tangible Assets work will be allowed to sub-
contract the job awarded to it.

vii) All the documents should be signed by a Partner with his/her name under the seal of the firm.

viii) Applications must be submitted under sealed cover mentioning the EOI notice no. NFL/INTERNAL
AUDIT /2021-22/2 & date and the words ‘Application for empanelment of Stock Verifiers for
Physical Verification audit of Inventory & Tangible Assets for Financial Years 2021-22, 2022-23
& 2023-24’ addressed to ED(IA), NFL, CO, A-11, Sector-24, NOIDA-201301 (U.P.). The name and
address of the firm must also be indicated on the envelope itself.

12. Action against the Successful applicant
Failure to act according to EOI conditions, non-fulfillment of any or whole of the contract may entail
de-listing of the firm in addition to taking other appropriate action against the Firm.

13. Arbitration
“Any dispute or difference whatsoever arising between the parties out of or relating to the construction,
meaning, scope, operation or effect of this contract or the validity or the breach thereof shall be
resolved amicably through negotiations by the Parties. A “Notice of Dispute” shall be given by the party
seeking resolution of a dispute to other party. If the dispute is not resolved within Thirty (30) days from
the notice, the dispute shall be referred to arbitration as per the procedure mentioned herein below:

A written notice shall be given by the contractor invoking arbitration to National Fertilizers Limited
through ED (IA), NFL.

Where the claim including determination of interest, if any, being claimed upto the date of
commencement of arbitration does not exceed Rs. Five crore, the reference shall be made to a sole
arbitrator. The parties shall mutually agree on the name of sole arbitrator. In case of disagreement
upon the name of the sole arbitrator, the appointment of Sole Arbitrator shall be done in accordance
with the provisions of Arbitration & Conciliation Act, 1996.

Where the claim including determination of interest, if any, being claimed, upto the date of
commencement of arbitration exceeds Rs. Five crore, the reference shall be made to arbitral tribunal
consisting of three arbitrators. Each party shall nominate one arbitrator each within 30 days from the
date of receipt of notice of invocation of arbitration and two nominated arbitrators shall appoint the
presiding arbitrator within 30 days thereafter. If a Party to the dispute refuses or neglects to nominate
an arbitrator on its behalf within the period specified, or the two arbitrators fails to nominate Presiding
arbitrator, appointment of Arbitrator(s) shall be done in accordance with the provisions of Arbitration &
Conciliation Act, 1996.

The Arbitration proceeding shall be governed by the Arbitration & Conciliation Act, 1996 and any further
statutory modification or re-enactment thereof and the rules made thereunder.

It is agreed by and between the parties that in case a reference is made to the Arbitrator for the
purpose of resolving the disputes/differences arising out of the contract by and between the parties
hereto, the Arbitrator shall not award interest on the awarded amount more than the rate SBI PLR/Base
Rate applicable to NFL on date of award of contract.

The seat and venue of arbitration shall be Delhi.

The cost of the proceedings shall be equally borne by the parties, unless otherwise directed by the
arbitral tribunal. The decision of the arbitral tribunal shall be final and binding on all parties.”

14. Jurisdiction
In respect of all EOI conditions, the decision of NFL shall be final and binding. The venue of the
Arbitration shall be Delhi & Delhi courts will have exclusive Jurisdiction.

NFL/INTERNAL AUDIT /2021-22/2 Page 16 of 35
Annexure-B

List of Documents to be attached along with the application/EOI

Interested firms are advised to go through the contents of the EOI documents carefully and
submit the self attested copies of the following documents in proper sequence along with the
EOIs as described here under:

1. Typed Application to be filled & signed.

2. Latest Registration certificate of the firm issued by The Institute of Chartered
Accountants of India / The Institute of Cost Accountants of India

3. Copies of Appointment letter showing experience of Stock verification in any other
nitrogenous based fertilizer manufacturing plant/Ammonia and Urea manufacturing plant
of a Company/Organization/Co-operative in preceding five Financial Years
(i.e. FY 2015-16,2016-17, 2017-18,2018-19 & 2019-20).

4. Copies of Appointment letter showing experience of Stock verification in any other
manufacturing plant of a company (other than plant mentioned above) in preceding five
Financial Years (i.e.FY2015-16,2016-17, 2017-18,2018-19 & 2019-20).

5. Copy of profit & loss accounts of the firm for the year ended 31.03.2020 showing
professional receipts of the firm

6. Copy of PAN

7. Copy of GST Registration

NFL/INTERNAL AUDIT /2021-22/2 Page 17 of 35
Annexure -1(A)

NATIONAL FERTILIZERS LIMITED:

Name of Unit……………

RESULT OF PHYSICAL VERIFICATION OF BULK MATERIALS, CHEMICALS,
FINISHED PRODUCTS AND SEMI-FINISHED PRODUCTS FOR THE QUARTER

ENDED..........

S.N Description Unit Book Physical Excess/ Percentage of Permissible Excess/
.
/Qty Stock Stock Shortage shortage/excess Norms Shortage
1. PACKING MATERIALS
Value(Rs.)
a) HDPE Bags
b) HDPE Bags (Neem NOS.
Coated Print) NOS.

2. a) COAL- Non-Coking MT

b) Neem Oil KL

3. CHEMICALS & PETRO-
CHEMICALS

a) Sulphuric Acid MT

b) Caustic Soda Lye MT

c) HSD with Prod. KL

d) Petrol (MS) LT

e) HSD with Store LT

f) Others

4. FINISHED GOODS

a) Urea Plain MT

b) Urea Neem Coated MT

5. SEMI FINISHED
GOODS

Liquid Ammonia MT

Nitric Acid MT

NFL/INTERNAL AUDIT /2021-22/2 Page 18 of 35
Annexure-1(B)

Verify that points for implementation for storage of valuable scrap as listed below
are being complied with and report discrepancies if any:

1. Wooden door of the scrap store room may be replaced with steel door to keep
value scrap safer from pilferage point of view.

2. Costly scrap is to be kept in separate strong room with proper double seal system
and proper record of opening/closing in association with CISF.

3. In case of valuable scrap, tare weight is not applicable as these scraps are
weighted directly on weigh scale and in that case slip is not generated. Only net
weight is to be written on the MRV.

4. Origin of valuable scrap shall be mentioned by the User Dept. along with source.

5. The scrap should be returned through the representative of User Department to
witness the weight measurement and to sign the MRV.

6. All Material Return Voucher (MRV) of valuable scrap should be complete in all
respects and accompanied by documents as listed below:

a) Weighment slip of the weigh bridge duly signed by the In charge of Weigh
Bridge, user department and CISF personnel depicting the details of gross
weight, tare weight and net weight.

b) Certification from the User Deptt. to the effect that the material is scraped
and has been segregated wherever practicable and cannot be used
elsewhere in the plant.

c) Origin of the scrap (i.e. Taken out from burnt motor etc.).

7. All Salvage Vouchers (SLV) / Outgoing Gate Passes of Sale Order of valuable
scrap would be complete in the following aspects.

a) Weighment slip of the weigh bridge duly signed by the In charge Weigh
Bridge and CISF personnel depicting the details of gross weight, tare weight
and net weight.

b) Physical description of the scrap.
c) Name and complete address of the consignee.
d) Gate Pass/challan details/ vehicle No.

8. All MRVs and SLVs / Gate Passes of valuable scraps should be invariably entered
in the respective Bin Card / Ledger Sheet in the chronological order with quantity
balance maintained and authenticated by the Godown in charge / Officer of Store

NFL/INTERNAL AUDIT /2021-22/2 Page 19 of 35
Deptt. Separate Bin Cards/ Ledger Sheets be maintained for each category/ nature
of item.

9. Valuable scraps may be kept metal-wise basis.

10. Attachments wherever feasible, should be dismantled by User Department before
returning to stores Section according to nature of item. In case of mixed metal
scrap which cannot be separated, User Department should indicate approximate
quantity of each valuable metal Regarding storage & disposal of such items which
are attached with other metal i.e. mixed scrap may be deliberated in detail by unit
level committee & formulate the procedure which should be appropriate i.e. in
commensurate with the value, volume, weight & pilfer-ability of such scrap material.

11. No change in specification of material or transfer / shifting from one category to
other to be done in the Bin Cards / Ledger Sheet without authentication by the User
Department. However, User Department shall ensure that correct metal description
is entered at first stage in the MRV.

12. MOC / Purity etc. wherever applicable for costly items, like platinum wire etc. as
scrap is generally seen by the parties before submission of quotation, and is
intimated by User Department.

13. Scrap may be deposited in Stores after removing foreign material mud's etc. i.e.
Sulphur Chimney /Paint containers.

14. Costly scrap items of copper, brass or other large items should have item
description. MOC percentage composition of different metals, name of department
and date of return by User Deptt. before returning to Stores.

15. There should be correlation between the total quantity issued to the User
Department and scrap returned by User Department and this record should be
maintained by User Department.

NFL/INTERNAL AUDIT /2021-22/2 Page 20 of 35
ANNEXURE -1(i)

NATIONAL FERTILIZERS LIMITED

CATEGORIES OF MAJOR ITEMS OF INVENTORY

S.No. Description of Materials

1 Tools &Tackles
2 Asbestos and joining sheets
3 Hardwares
4 Pipes and pipe fittings
5 Pipe Fittings
6 Valves
7 Welding & soldering Material
8 Raw Materials
9 Packing Materials
10 Fire Fighting & Safety Equipments
11 Construction Material
12 Gases & Insulation
13 Alloy & Special Steel
14 Non Ferrous Material
15 Furniture &Fixture
16 General Stores Misc.
17 General Electrical Stores
18 Electrical Cables
19 Petrol- Oil and Lubricants
20 Telephone Material
21 Fuel
22 Medical
23 Rubber & PVC Material
24 Lab Chemicals
25 Lab Equipments
26 Production Chemicals
27 Catalysts
28 Paints
29 Instrumentation Spares
30 Motor & Spares Elect.
31 Inverter/ DG Sets
32 Jyoti Spares
33 Cement Spares
34 L&T Spares
35 Transformers
36 Plant wise spares Electrical items
37 Auxiliary Plant to Ammonia Plant & ASU(Nitrogen)

NFL/INTERNAL AUDIT /2021-22/2 Page 21 of 35
38 Ammonia
39 Ash/coal /Furnace Oil & Material Handling
40 Misc. (Common Items for all the above plants such as Bearing Origin. etc.)
41 Primary Instrumentation
42 Transmitters
43 Main Penal Instrument
44 Instrument
45 Control Valves
46 Special Instrument
47 Test Equipment & Special Tools
48 Material & consumed Material
49 Auto spares (Loco Cranes and Pay Loaders)
50 Spares for jeep Car, Truck etc.
51 Spares for crane
52 Spares for construction aid
52 Capital Stores
53 General Stores
54 General Stores(CPP)
55 Plant Spares(CPP)
56 Mech. Spares
57 Mech. (HES)
58 Ammonia Plant
59 Mech. Workshop/HES
60 Mech. Spares CPP &SGP
61 O & U Plants

NFL/INTERNAL AUDIT /2021-22/2 Page 22 of 35
Name of the firm of Stock Verifier: ANNEXURE -1(ii)
Name of the Unit:
Physical Verification Slip No.
Date
Group Location

Category Description Unit of Quantity Verifier
Item Measurement
Code No.

Above Quantity has been found after physical verification.

Stock Verifier Manager/Sr. Manager( Stores)

NFL/INTERNAL AUDIT /2021-22/2 Page 23 of 35
ANNEXURE -1(iii)

Name of the firm of Stock Verifier: Name of the Unit:

Stock Taking Sheet No.

Main Inventory Code No. Category of material verified:

Item Name of Unit of Actual Bin Card Discrepanc Comments Remarks of

Code Article Measur Stock Balance Exce Shorta of Incharge the Stock
No. ement Stores Verifier
ss ge

Certified that all stocks of above items Certified that actual stocks have been
presented for verification and found on physical verification have
Actual stocks above are correct been found and actual stock are
correct

Verified from the bin cards and
signed.

(In-charge Custody (Officer In-charge) (Stock Verifier)
of Material) Store Deptt. Page 24 of 35

NFL/INTERNAL AUDIT /2021-22/2
ANNEXURE -1(iv)

Name of the firm of Stock Verifier: Date:
Name of the Unit:
Report of Discrepancies in Stores Stock Verified at

Stock Materials Description Unit of Actual Book Discrep Comments Remarks of the
No. taking code s of Articles Meas- Stock Balanc ancy of Inchar- Stock Verifier
e Bin Excess ge Stores
Sheet urement Card /
Balanc Shorta
No. e ge

(In-charge Custody (Officer In-charge) (Stock Verifier)
of Material) Store Deptt.

NFL/INTERNAL AUDIT /2021-22/2 Page 25 of 35
Annexure – 1(v)

LIST OF MOVABLE PPE

120 PLANT AND MACHINERY
120018 Workshop Machinery (Mechanical)
120019 Work shop Machinery (Electrical)
120020 Work shop Machinery (Instrumentation)
120021 Construction Equipments
120022 Locomotives

130 MISC. EQUIPMENTS(F)
130002 Laboratory Equipments
130003 Fire Fighting Equipments
130004 Store Handling Equipment (Including Weigh Bridge)
130005 Safety Equipments
130006 Drawing Office & Survey Equipment

130007 Canteen Equipments
130010 Misc. Equipments (CISF)
130013 PRO Equipment
130015 Production Equipment
130808 Training Centre Equipments

131 MISC. EQUIPMENTS(T)
131102 School Equipments
131103 Hospital Equipments
131104 Guest House/ Hostel Equipments
131105 Horticulture Equipments

135 FURNITURE/FIXTURE&OFFICEAPPLIANCES(F)
135001 Office Furniture Fixture
135004 Canteen Furniture
135805 Training Centre Furniture
120035 Office Appliances (Typewriter,Calculator Etc. Factory/Office)
120036 Room AC/Cooler/Water Coolers/Refrigerator
120042 Residential Electrical Appliances

136 FURNITURE/FIXTURE&OFFICEAPPLIANCES(T)
136102 Furniture & Fixtures (Hostel/Guest House)
136103 Furniture & Fixtures (Hospital)
136104 Furniture & Fixtures (School)
136107 Furniture & Fixture (CISF)
120043 Room AC/Coolers /Water Cooler/ Refrigerator Etc.(Residential)
120137 Room AC/Coolers/ Water Cooler/ Refrigerator (Township)

140 VEHICLES (F)

140001 Heavy Vehicles

NFL/INTERNAL AUDIT /2021-22/2 Page 26 of 35
140003 Light Vehicles
140004 Motor Cycles/Scooter/Auto Rickshaws
140005 Bicycles/Rickshaws
140006 Soil Testing Vans

PHYSICAL VERIFICATION OF ASSETS AS ON .........................

Assets Code Description Location/ Room No.
10
11 Chairs -Steel
12
012 Chairs revolving
20
21 Chairs -moulded
22
23 Chair -Sofa
30
40 Table – one side drawer
41
50 Table – both side drawer
51
Table – conference room

Table–centre–side tables

Filing Cabinet

Almirah

Book-case

Racks Steel

Racks wooden

155 Computer–others(specified)

560 Computer Printers–dot matrix

570 Voltage stabilizers

580 Telephone instrument–ITT

590 Vacuum Cleaner

370 VCR

380 Trolley TV stand

390 Reception/table/counter

400 Platform scale

410 Deck stereo

420 Amplifier

430 TT Table

440 News paper stand

450 Book rack

460 Library book counter

470 Radio set

480 Durries

490 Drawing Board

500 Washing Machine

510 W Locker

NFL/INTERNAL AUDIT /2021-22/2 Page 27 of 35
520 Photo phone over head

530 Mini tape with ear phone

540 Tube light fittings

550 Computer- Pcs

551 Computer- Pcs/XTs

552 Computer- Pcs ATs

553 Computers – 386

554 Computers – 406

150 Water Cooler

160 Desert room cooler

180 Postal Franking machine

190 Telex machine

191 Fax machine

200 Cashbox

210 Fans –pedestal/cabin

211 Fans -ceiling

212 Fans -exhaust

220 Photocopier

230 Heat convector

231 Room heater

240 Fixo graph

250 Postal weighting machine

260 Duplicator

270 Refrigerator

280 Deep freezer

290 Speech board &platform

300 Writing board

310 Coffee machine

320 Cooking range

330 Mattresses

340 Carpet

350 Mixer grinder

60 Cots

70 Stools

80 Benches

90 Sofa

100 Air conditioner split

101 Air conditioner window

110 Billiard Table

120 Water Filter

130 Geyser

140 Type writer Manual

141 Typewriter Electronics

Note: This is an indicative list. Stock Verifier may obtain the updated list from the Unit.

NFL/INTERNAL AUDIT /2021-22/2 Page 28 of 35
Annexure – 1(vi)

Name of the firm of Stock Verifier:
Report of Physical Verification of Moveable Assets

Assets Account Nomenclature

Date of verification

Sr. Description Identific- Location Actual Balance Balance Discrepancy as Reasons for
No. of Assets ation Stock as per as Per compared to Discrepancy
Deptt. property Property Ledger
No. of Record Ledger
item maintain- Excess short age
ed by
Accounts

1 2 3 4 5 6 7 8 9 10

Certified that all items under the above Assets have been produced for Physical Verification
as per quantity mentioned above.

.

(Officer In-charge of Assets) (Stock Verifier)
NFL/INTERNAL AUDIT /2021-22/2 Page 29 of 35
Annexure-1(vii)

LIST OF OBSOLETE, SURPLUS, UNSERVICEABLE AND NON-MOVING ITEMS
INCLUDED IN THE INVENTORY AS ON 31.03.2021.

Name of Unit :

S. Item Item Date of Unit of No. of Items

N. Code description Purchase measurement

A Surplus Items

B Obsolete
Items

C Unserviceable
Items

D Non-moving
Items:-

(i) More than 5
(ii) 3-5 yrs
(iii) 1 -3 Years

(Officer In-charge of Assets) (Stock Verifier)

NFL/INTERNAL AUDIT /2021-22/2 Page 30 of 35
Annexure-1(viii)

SUMMARY REPORT

Details of Items as on 30.09.2021

Category Total Nos of No. of Items %age Remarks

A Items Verified
B
C

(Officer In-charge of Assets) (Stock Verifier)

NFL/INTERNAL AUDIT /2021-22/2 Page 31 of 35
Annexure‐2 (i)

List of broad items of Moveable Assets for Physical verification for the year 2021-22
(31st Dec, 2021)

Sl. No. Asset Particulars Quantity
1 AC
2 ALMIRAH/CABINET
3 ARD
4 BARROW
5 BED
6 BENCH
7 BOOK CASE
8 BINDING MACHINE
9 BUDDY
10 CAR AC
11 CASH BOX
12 CD WRITER
13 CHAIR
14 CLOCK
15 COAT HANGER
16 CVT
17 DATA SAFE
18 DEEP FREEZER
19 DESERT COOLER
20 DG SET
21 DIARY
22 DIGITAL CLOCK
23 DINING SET
24 DISH ANTENNA
25 DTH
26 DVD/CD
27 ENTRY‐EXIT CONTROL SYSTEM
28 EPABX
29 FANS
30 FAX MACHINE
31 FIRE EXTINGUISHER
32 FRANKING MACH
33 GAS STOVE
34 GEYSER
35 HARD DISK
36 HEATER
37 HOT CASE
38 INVERTER
39 LADDER

NFL/INTERNAL AUDIT /2021-22/2 Page 32 of 35
40 LAPTOP

41 MEMO RECORDER

42 MICROWAVE

43 MODEMS

44 MUSIC SYSTEM

45 NUMBERING MACH

46 PC

47 PHOTOCOPIER

48 PLANTER WITH CASE

49 PRINTER

50 PROJECTOR

51 PUBLIC ADDRESS SYSTEM

52 PUMPS

53 RACKS

54 REFRIGERATOR

55 SCANNER

56 SCREEN

57 SERVER

58 SHREDDER

59 SIDE UNIT

60 SOFA

61 SPEAKERS

62 STOOL

63 TABLE

64 TEL‐CALL ID

65 TEL‐CORDLESS

66 TELEPHONE

67 TV

68 TENDER BOX

69 TV STAND/TROLLEY

70 TYPRWRITER

71 UPS

72 VACUUM CLEANER

73 VCR/VCD

74 VENDING MACHINE

75 VOICE RECORDER

76 WATER COOLERS

77 WATER DISPENSER

78 WATER PURIFIER

79 WEB CAMERA

80 WEIGHING MACHINE

81 WRITING BOARD

Grand Total

NFL/INTERNAL AUDIT /2021-22/2 Page 33 of 35
Annexure -2(ii)

Name of Firm of Stock Verifier:

Stock Taking Sheet of Movable Assets (Year 2021-22)

Sheet No.:

Assets Accounts Head: Nomenclature: Date of Physical Verification:

S. Description Identific- Locat- Unit/M Physi- Stock as Balance Discrepancy Reason
N. of Assets ation ion cal per as per
Stock Deptt. assets as compared for
no. of
assets Register ledger to assets Discre-

ledger pancy

Exc- Short-
ess age

Certified that all items under the above Assets account head have been produced for physical
verification as per quantity mentioned above

(Officer In charge of Assets) (Stock Verifier)
With seal With seal

NFL/INTERNAL AUDIT /2021-22/2 Page 34 of 35
Annexure-2(iii)

Name of Firm of Stock Verifier:
Discrepancy Report of Moveable Fixed Assets (Year 2020-21).

Sr. Stock Asset Description U/M Actual Balance as Discrepancy Remarks
No. Taking Account of Article Stock per Asset of Stock
Register Verifier
Sheet Head maintained
No. by
Accounts

Excess Shortage

(Signature of Stock verifier)
With seal

NFL/INTERNAL AUDIT /2021-22/2 Page 35 of 35