Download pdf - INDIAN RARE EARTHS LIMITED · 2014-12-02 · INDIAN RARE EARTHS LIMITED . TENDER NO. IRE/MK/EMP/Internal Audit/2014 -15/55 dt.10.02.2014 Tender for “Empanelment and appointment

INDIAN RARE EARTHS LIMITED

TENDER NO. IRE/MK/EMP/Internal Audit/2014-15/55 dt.10.02.2014

Tender for “Empanelment and appointment as Outsourced Internal Auditors” for Indian Rare Earths Ltd., Manavalakurichi.

Indian Rare Earths Ltd. (IREL), Manavalakurichi invites sealed tender in two parts i.e. PART – A for TECHNICAL CUM COMMERCIAL BID and PART – B for PRICE BID

for empanelment of Chartered Accountants Firms for appointment as Outsourced Internal Auditors for IREL Manavalakurichi for the year 2014-15 and onwards and appointment as Outsourced Internal Auditors for the year 2014-15 for IREL Manavalakurichi as per the followings: 1. Office of issue DGM(Purchase), IREL, Manavalakurichi

2. Tender No. IRE/MK/EMP/Internal Audit/2014-15/55

dt.10.02.2014

3. Last date & Time of receipt of Tender

06-03-2014 at 14:15 Hrs.

4. Due date & time of opening of tender 06-03-2014 at 14:30 Hrs.

5. Validity of Offer 60 days from the date of opening of the price bid.

Interested parties may download the tender document containing all details from websites: http://irel.gov.in or http://tenders.gov.in. Any corrigendum/extension to above shall be hosted in above websites only.

For Indian Rare Earths Ltd.

Dy. General Manager (Purchase)

Signature of the bidder

http://irel.gov.in/�

http://tenders.gov.in/�

TABLE OF CONTENTS

Clause Title Page No

A Preamble

3 B Pre-qualification(PQ) Criteria

C Information to be given by the Bidder 4

D Preparation & Submission of Bid 5

E Bid Opening & Evaluation

6

F Scope of the works

G Reporting Format

H Audit Calendar

I Deliverables

J General Terms & Conditions of Contract 6 & 7

K Other Terms & Conditions 7

L Force Majeure

8 M Arbitration and Legal Jurisdiction

N Failure & Termination

O Deviation Statement

P Ethics in tendering & other business dealings 9

Q Undertaking 10

R Price bid format 11


A. PREAMBLE

Indian Rare Earths Limited, a Mini Ratna-I company is a Govt. of India Undertaking under the Department of Atomic Energy & its Head Office is situated at Prabhadevi, Mumbai (Maharashtra) and is operating beach sand mining and mineral separation plants at Chavara (Kerala), Manavalakurichi (Tamil Nadu) & Orissa Sands Complex (OSCOM), Chatrapur (Odisha), with installed capacity to produce 510,000 tons per annum Ilmenite and also associated minerals such as Rutile, Leucoxene, Zircon, Silimanite, Garnet, etc. IREL also has its chemical unit at Rare Earths Division (RED) Aluva, Kerala which is associated with production of Rare Earth Compounds. Further, IREL has its Corporate Research Centre at Kollam (IRERC), Kerala. IREL also would be commissioning a plant at OSCOM for production of Rare Earths Chloride and other associated chemicals.

IREL is desirous of taking services of Chartered Accountants Firms as Outsourced Internal Auditors for Manavalakurichi.

B. PRE-QUALIFICATION (PQ) CRITERIA

Chartered Accountants Firms (Firm) possessing the following pre qualification criteria may submit the documentary evidences in support of the same in a sealed envelope with superscription “Empanelment & appointment as Outsourced Internal Auditors”:

Sl.No.

Pre qualification criteria Documents required (Self Attested)

1 The firm should be a partnership firm. Copy of Partnership deed or Firm Registration Certificate (FRC) issued by The Institute of Chartered Accountants of India (ICAI).

2 Firm should have conducted either statutory or Internal audit in PSUs (State PSU or CPSU).

Copy of appointment order received from clients in this regard along with self certificate towards conducting the same.

3 The firm should not be less than three years old

FRC issued by ICAI.

4 The firm should have an exposure in handling tax matters.

Copy of order received from clients in this regard or self certification with details on the subject to that effect

Firms not fulfilling the above PQ criteria need not submit bid as their bid shall be liable to be summarily rejected. Signature of the bidder

C. INFORMATION TO BE GIVEN BY THE BIDDER

a. Name of the Bidder Firm :

b. Name of the Partners :

c. Address of the Firm :

____________________

Telephone No. : Office : Mobile : FAX : E-mail ID : d. Registration particulars of the Firm & Date of Formation :

e. Name/Designation/Address of the Authorized Signatory for signing the bid holding the Power of Attorney(if any) : f. Permanent Account Number (PAN) :

g. Service tax Registration details :

h. Details of Experience (In brief) :

i. Details of professional Personnel/working staff :

Certified that the information given above is true and if any information is found to be false or misleading the bid /contract shall be liable to be cancelled.

Name :

Signature :

(Capacity in which signed)


D. PREPARATION & SUBMISSION OF BID

i. The bid prepared by the bidder shall comprise the following components: I. Part –A Technical cum Commercial bid,

Which shall contain (clause A to Q) II. Part-B Price bid, which shall contain the Price schedule, shall be submitted as per

the format (clause R). Price bids which are not submitted as per the enclosed format shall be rejected.

ii. The bidder shall prepare separate envelopes for Part-A Technical cum Commercial Bid and Part-B Price bid with clear marking of the same on the top of each envelope and shall also seal both the envelopes with wax or PVC tape. The two bids will further be sealed in an outer (Main) envelope with wax or PVC tape.

iii. The bidder shall fill in the particulars given in clause C (Information to be given by bidder) and the same along with the copies of self attested relevant documents as mentioned in clause B (Pre-qualification Criteria) in support of the PQ criteria. The Bid form with undertaking, deviation statement, audit Calendar, scope of the work & reporting format duly signed in all pages as a token of acceptance of the bid documents by the Bidder. All the above documents other than price bid will be sealed in one separate envelope with clear marking of Part-A Technical cum Commercial Bid on the top of such envelope. If all the pages of the tender is not signed by the bidder, it shall be rejected. The bidder except the existing Outsourced Internal Auditors shall fill in the particulars given in clause R (price bid) and the same will be sealed in another separate envelope with clear marking of Part-B PRICE Bid on the top of such envelope. The both the envelope shall be sealed in the third envelope (main envelope).

iv. The sealed main envelope shall: (a) Be addressed to M/s. IREL on the following address:

HEAD, Indian Rare Earths Ltd., Manavalakurichi - 629252, Kanyakumari District, Tamilnadu

(b) Bear the tender number and due date of opening of the tender.

The sealed main envelope may also be dropped in the Tender Box at M/s. IREL, Manavalakurichi - 629252, Kanyakumari District, Tamilnadu.

v. In case said envelope cannot be inserted in the tender box, the envelope duly sealed may be delivered to the office of DGM (Purchase), IREL, Manavalakurichi. The responsibility for ensuring that tenders are delivered in time would vest with the bidder.

vi. M/s. IREL shall not be responsible if the bids are delivered elsewhere. If envelope is not sealed and/or superscribed as mentioned above, M/s. IREL shall not accept the bid.

vii. Any bid received by M/s. IREL after the prescribed deadline for submission of bids, shall be rejected.


E. BID OPENING AND EVALUATION

M/s. IREL shall open the bids in the presence of bidder/s or his authorized Representatives, who choose to attend at 14:30 Hrs on the due date. The bidders’ representatives, who will be present; shall sign in the attendance register, authority letter to this effect shall be submitted by the bidder before they are allowed to participate in bid opening. If the last date stipulated for receipt of bids and/or for their opening happens to be a Holiday / unscheduled closure, it shall be deemed to fall on next working day at the same time.

All the bids shall be evaluated based on the term & conditions of this tender to shortlist the qualified bidders. Bids shall be evaluated in two phases. First, technical cum commercial bid evaluation shall be done. Technically & Commercially qualified bidders shall be empanelled. Only those bidders, who shall qualify the technical cum commercial bid evaluation except the existing Outsourced Internal Auditors, shall be considered for opening of price bid. The opening of the price bid will be intimated to the respective bidders in due course and will be allowed to participate/attend at the time of price bid opening.

M/s. IREL shall consider placement of order on the bidder, whose offer shall be the lowest.

F. SCOPE OF WORK

Scope of work is annexed as "Annexure-I"

G. REPORTING FORMAT Reporting Format is annexed as "Annexure-II"

H. AUDIT CALENDAR Audit Calendar is annexed as "Annexure-III"

I. DELIVERABLES The successful bidder has to conduct the audit as per the scope of work as mentioned under clause "F - Scope of work" and submit the monthly Audit Report in the format mentioned under clause "G - Reporting Format" and other Reports as per Audit calendar as mentioned under clause "H - Audit Calendar".

J. GENERAL TERMS & CONDITIONS OF CONTRACT

i. PAYMENT TERMS: Payment for the audit work shall be released in two equal installments based on the progress of the work as certified by the In-charge of Internal Audit department. The first installment shall be released in November and second and final installment shall be released after completion of total audit assignment for the financial year.

ii. VALIDITY OF OFFERS/PRICE: Bidders have to quote the prices strictly as per the Price Bid format (Clause R). Prices quoted by the bidders in their bids shall remain firm and valid for the total contract period or till complete execution of the contract. However Statutory Levies/Taxes are applicable on prevailing date of actual render of services on submission of invoice. The offered price should be valid for a period of 60 days from the date of opening of price bid. Signature of the bidder

iii. PERIOD OF CONTRACT: The Period of contract shall be for the Financial Year 2014-15 (for one year). M/s.IREL reserves the right to extend the contract on same terms and conditions for the next two Financial Years (2015-16 & 2016-17) subject to certain need based changes in the audit scope/reporting format/audit calendar. iv. RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS:

M/s.IREL reserves the right to accept or reject any bid, and to annul the bidding process and reject all bids, at any time prior to award of contract without assigning any reason whatsoever and without thereby incurring any liability to the affected bidder or bidders on the grounds for the IREL’s action.

v. RELATED PARTY: Related parties should not quote for the tender separately. If it is noticed that related parties submitted separate quotation, the same shall be liable to be rejected. Parties are considered to be related if one or more partner is common.

vi. INCOME TAX Income tax shall be deducted at source as applicable. vii. SERVICE TAX

Service tax shall be paid only to those bidders who have service tax registration for the said job and billing on IREL has been made in terms of guidelines stipulated in the service tax rules.

K. OTHER TERMS AND CONDITIONS

i. You shall depute sufficient number of competent staff for audit work at your own cost. ii. You shall submit draft monthly audit report to the In-charge of Finance department at

Manavalakurichi and the final report along with the views of the In-charge of Finance department shall be forwarded to Director (Finance) with copy to In-charge of Finance department & In-charge of Internal Audit department at Manavalakurichi.

iii. The audit staff may be advised to observe all safety precautions as applicable to the department in which the work is carried out.

iv. The Company shall not be responsible for any accident caused to your personnel due to their negligence.

v. Every effort shall be made to complete the internal audit work strictly as per the audit calendar.

vi. You shall be in constant touch with the Director (Finance), In-charge of Finance department & In-charge of Internal Audit department at Manavalakurichi.

vii. Information made available during the course of audit shall be used only for bonafide work relating to audit of the company and not for any other purpose. The auditors shall not divulge the information made available by the Company or otherwise acquired during the course of audit to any other agency.

viii. As a result of study and evaluation of internal control and other auditing procedures, the auditor should inform the management regarding weakness in internal control if any.


L. FORCE MAJEURE:

If at any time during the currency (tenure) of the tender, it is not possible to execute any portion of the work stipulated in the order, due to reasons beyond the control of either IREL or the bidder, on account of emergency declared by government, reasons of go slow, strike or lockout at our / the bidder's office, war, civil commotion, earthquake, fire, storm, flood, acts of God, acts of any government, sabotage, riot, police action, revolution, unforeseen circumstance or other hindrance beyond one’s control, there shall be no liability on the part of the defaulting party for consequential losses.

M. ARBITRATION AND LEGAL JURISDICTION

All disputes or differences whatsoever arising between IREL and bidders out of or relating to the construction, meaning and operation or effect of this tender shall be settled by the sole Arbitrator appointed by the Chairman & Managing Director of IREL and the award of such arbitrator shall be final and conclusive and binding. No objection shall be raised on the ground that the arbitrator so appointed is an employee of IREL. The seat of arbitration will be at Manavalakurichi and only the appropriate court coming under the High Court of Chennai will have jurisdiction to entertain all matters of litigation to the exclusion of all other courts.

N. FAILURE AND TERMINATION:

If the bidder fails in the performance of the contract in the manner and within the time fixed or there is likelihood of an anticipatory breach of whole or part of the contract, the Company will have the right to rescind the contract and have it performed through other agencies at the risk and cost of the bidder.

O. DEVIATION STATEMENT

Bidders have to submit the deviation statement as per the following format, if there is no deviation with tender conditions "NIL" statement must be submitted by the bidders. Clause reference as per tender

Terms as per tender Terms as offered by bidder

If nothing is mentioned by the bidder on the above table then it shall be deemed that there is no deviation from the tender conditions and the bidder agreed to comply with all the terms and conditions of the tender.


P. ETHICS IN TENDERING & OTHER BUSINESS DEALINGS

Indian Rare Earths Limited a Government of India undertaking under the administrative control of Department of Atomic Energy is doing its business as per the rules and regulation of the Public sector undertaking and other statutory agencies. The business is done in an ethical, rational & impartial manner with good corporate governance. In our endeavor to be more transparent in our dealings and to support our ideology all vendors, customers and Business Partners are requested not to provide any gift and/or inducement to any of our employees for securing/being granted favour in dealings with our company. In assurance of your commitment to the aforesaid, it will be highly appreciated if you fill up, sign and abide by the undertaking as referred in clause Q.

Report of any gifts and/or inducements sought by any employee of the company should be immediately reported to any one of the following.

Chairman & MD Indian Rare Earths Ltd. 1207 VS Marg, Prabhadevi Mumbai - 400 028 Ph: 022 – 24225778 Email: [email protected] ;[email protected]

Chief Vigilance Officer Indian Rare Earths Ltd. 1207 VS Marg, Prabhadevi Mumbai - 400 028 Ph. 022 - 24382042 Email: [email protected]

Or HEAD

Indian Rare Earths Limited Manavalakurichi -629252

Ph: 04651- 237255,237256,237257 & 237258, Email: [email protected]

We assure you that complaints if any made by you on the subject will be kept confidential and fair investigation will be conducted and appropriate action will be taken. Similarly, we expect your commitment to the undertaking and its violation will have consequences as per prevailing rule of the company.

For Indian Rare Earths Limited

Sd/-

HEAD


mailto:[email protected]�

Q. UNDERTAKING

Date:

To,

M/s Indian Rare Earths Limited Manavalakurichi -629252 Kanyakumari District

I/We ……………………………………………….……am/are a Vendor/Customer of Indian Rare Earths Limited (now on wards to be referred as Company). I/We agree and undertake:

i) Not to provide any gift and/or inducement to any employee of the Company in connection

with securing/being granted favour(s) in my/ our dealings with the Company and its field

units namely OSCOM at Orissa, MK unit at Tamilnadu, Chavara, IRERC and RED unit at

Kerala.

ii) To immediately report any gift and/or inducement sought by any employee of the company

in exchange of the company and/ or its field Units granting favour(s) to me/ us in my/our

dealing with the Company and/ or its field units.

We further declare that no bid has been submitted by any related party as defined under point (v) of clause J of the tender.

Signature: …………………………………………………

Name: ……………………………………………………..

Capacity in which signed: ……………………………………………………….

Name of the Firm & Address (With Seal): ………………………………

R. PRICE BID FORMAT

PRICE SCHEDULE

Outsourcing of Internal Audit work for the year 2014-15

Sl No Description Qty Amount (Rs)

1.

Annual fee of all periodic Internal audit works as specified in Clause F, G and H (Scope of Work, Reporting formats and Audit..calendar) (Total price inclusive of all charges/taxes except service tax)

Annual

2. Add: Applicable Service tax

(indicate % --------- )

3. Total (1+2)

Total in words Rupees

Signature of the bidder with seal.

Notes:

1. Service tax shall be paid at prevailing rate at actual. 2. Tenders are evaluated based on lowest rates quoted excluding service tax. 3. All the prices shall be indicated in both figures & words. In case there is any

discrepancy between figures & words, words shall prevail. 4. There should not be any cutting/overwriting, in case of cutting/overwriting the bid shall

be liable to be rejected. 5. In case any column is left blank, the bid shall be liable to be rejected.


Annexure – I

Scope of outsourced internal audit work – Manavalakurichi.

Sl No

Audit area Periodicity of check Coverage

A Cash & Bank Book 1 Cash book – to be checked

with counterfoils of receipt, credit and debit vouchers

Monthly To verify whether all supporting documents are attached and receipt/payment is approved by competent authority as per delegation of powers.

50%

2 Cash verification Monthly Surprise check at least once a month any time during the day.

3 Bank book- to be checked with counterfoils of bank receipts, debits and credit vouchers, cheque books, pay-in-slip, debit and credit advices, incoming cheques to be checked with register and receipts

Monthly 50% of transactions in all months excepting months of September and March. September and March to be covered 100%.

4 Bank reconciliation statements September and March

All banks Sept. March and any month in the year.

B Sales including Inter unit transfer of finished goods 1 Domestic sales Verify the invoices

including the prices as per H.O. Circulars.

Any three months selected on random basis.

2 Export sales Verify all invoices including the prices as per concerned orders.

100%

3 Discounts and refunds on sale Complete verification with scheme announced by the company

100%

4 Concession forms for sales Complete 100% 5 Sundry debtors ledger Half yearly

Review and indicate

the list of parties not having any transaction in the last three years.


Scope of outsourced internal audit work – Manavalakurichi. Sl No


C Purchases 1 Purchase journal (PJ) (with

reference to purchase orders receipt voucher and inspection reports)

Monthly 100% for PJs exceeding Rs 3,00,000.

2 Verification of VAT returns. Quarterly To submit report whether Unit has availed admissible credit and filed necessary returns under the act.

3 Verification of Entry Tax returns (wherever applicable)

Quarterly To submit report whether Unit has availed admissible credit and filed necessary returns under the act.

4 Sundry creditors ledger Quarterly Review and indicate list of parties not having any transaction in the last three years along with age wise analysis

D Establishment

1 Pay rolls (to be checked with last pay sheet, increments, attendance time cards etc.)

Yearly Any three months (not continuous) selected at random.

2 Leave records Yearly One month

3 Unpaid wages registers and other establishment records / registers.

Half yearly – Review Audit report of October and March should include.

5 Recovery of TDS from employees including perquisite valuation.

Covering all groups of personnel on test basis.

20%

6 Recovery of loans from employees

Recovered in terms of the guidelines issued by H.O.

25%

7 Verification of LTC encashment and availed

20%

8 Verification of leave encashment

50%



Sl No

Audit area

Periodicity of check Coverage

E

Journal

1 Journal vouchers Monthly 50%

2 Ledger and sub ledger scrutiny Quarterly Examine whether Unit is following a system of scrutinizing the various accounts and preparing detail schedule. Action taken on recovery of the amount due to the company.

F

Stores

1 Verification of posting of Receipt vouchers (RV) and Issue Vouchers (IV) in bin card

One week along with physical verification

2 Scrutiny of non-moving items of stores.

Yearly Report to cover the action taken by Unit for disposal of non- moving stores.

To report the reasons for accumulation of non-moving stores.

G

Works contracts including shipping contracts

1 All civil works, shipping contracts, electrical maintenance contracts, mechanical and other misc. contracts

In case of work order of Rs 2.00 lakh and above

100%

2 All civil works, shipping contracts, electrical maintenance contracts, mechanical and other misc. contracts

For remaining work orders

20%



Sl No


H Miscellaneous 1

Excise audit (CENVAT)

Yearly

To verify whether Unit maintains all necessary documents and records in support of CENVAT credit and whether such credit has been taken in terms of provisions of the Act.

100%

2 Tax Audit Yearly To verify whether Unit has complied with all the provisions covered by tax audit like timely remittance of TDS/TCS, payment of statutory dues and payment exceeding Rs. 20000/- by cash

100%


Scope of outsourced internal audit work – Manavalakurichi. SCOPE INCLUDES THE FOLLOWING ASSIGNMENTS ALSO:- 1. Audit of Establishment related payments:

a) Auditor is advised to select 25% of employees on random basis and verify entire cycle

starting from recording of attendance to disbursement of salary. The card numbers of the employees selected may be indicated in the report.

b) This includes verification of preparation of wage bill and inputs considered for its

preparation.

c) Scrutiny of leave records maintained by the Unit and its system of posting leave earned and leave availed (Both earned leave and half pay/sick leave).

d) System of recording attendance of the employees.

e) Method of recording overtime performed, recommending authority and document

furnished to finance department to include in the wage bill and computation formula adopted for determining overtime amount.

f) Verification of other variable data forwarded by other departments/agencies to finance

department for preparation of wage bill. Scope includes the verification of sources data also to ensure its authenticity and official authorizing such recovery/payment.

g) Auditor is requested to comment on the system presently being practiced relating to

establishment matters and offer his suggestions for further improvement.

2. Audit of Capital procurement including expansion program: a) Verification of schemes capitalized and transfer from/to capital work in progress

b) To verify all capital job value exceeding Rs 2.00 lalkh during the year.

c) It has to be “End-to-End” viz. from the time of raising the indent to completion of procurement and capitalization. The report should cover whether the Unit has followed approved purchase procedure.

d) To verify whether capital value of the asset has been correctly determined. e) Codification of asset and its capturing in the asset register to be reported. f) Auditor is requested to offer his comments on the system for further improvement. Signature of the bidder


3. Report on Purchases valuing more than Rs 3.00 lakh.

Detail report on whether purchase of stores and spares items are made after considering the stock position. Whether any procurement action has been taken when existing stock was not moving. Whether laid down purchase procedure has been followed in placement of the order(s).

4. Physical verification of fixed assets:

You are advised to conduct physical verification of fixed assets as at the opening of the financial year latest by end November and for the additions made during the year the verification is to be completed latest by 15th April. You are requested to ensure that asset codifications along with location code are properly marked on the assets concerned as per Administrative Instruction issued by the company and the same is captured in the asset register. The Unit also maintains necessary documentary evidence of transferring of asset from one location to other and suitably incorporating the Unit keeps the changes in asset register and necessary installation/completion certificates.

5. Verification of procedure of placement of works contract including shipping

contract (Value exceeding Rs 3.00 lakh):

You are advised to submit detail report on the procedure of inviting tenders to placement of works / shipping contract(s). Methodology adopted in recording the execution of the job and system of release of payment. The report should cover the aspect relating to recovery of statutory dues and deposited with appropriate authority within the stipulated time period.

6. Physical verification of stores and spares:

You are advised to draw detail scheme program to ensure that complete verification of all items are covered on monthly basis during the year. You may inform the program to head of the Unit to facilitate necessary support service of Stores Department.

7. Tax Deducted at sources / Tax Collected at Sources:

You are advised to submit quarterly report on TDS and TCS compliance. The report should be submitted latest by 10th of the following month.

7. Any other specific area of audit as assigned by the management relating to that

Unit and such report need to be submitted within the stipulated time specified in the communication.


Annexure – II Format of the report

Internal Audit Report for the month of ……………of Manavalakurichi unit, IREL

1. Vouching Details:

Particulars Number of Voucher/

Invoices generated Number of voucher/

Invoices audited/verified Observations

(Keeping in mind approved scope of Audit) For the

month Cumulative

up to the month

For the month

Cumulative up to the

month

Cash vouchers

Bank Vouchers All banks (Bank wise)

Sales Invoice Domestic (including discount & refund on sale) Export

Purchase Journal Exceeding Rs. 3

lakh

Journal Vouchers

2. Cash and stamps verification : Surprise check at least once a month any time

During the day Date of verification Amount as per Book Amount as per physical

verification Remarks

Cash Stamp

3. Bank reconciliation statements : To be verified for September, March and (For all Banks separately) any other month in the year

Remarks :


4. Comments on verification of Works Contracts including shipping contract:

Number of orders

placed during the year Value of the orders placed during the year

Whether normal purchase procedure is followed #

Observations on any other related area including Tax compliance

Work orders exceeding Rs. 2

lakh

For the month

Cumulative upto the month

For the month (Rs.)

Cumulative upto the month (Rs.)

# In case of deviation from normal purchase procedure, it should be reported in the following format: Sl. No.

Name of the contractor Amount of the contract

Deviation Response of the material Department

5. Comments on verification of Purchase of stores & spares items:

Number of orders

placed during the year Value of the orders placed during the year

Whether normal purchase procedure is followed ##

Whether purchases are made after considering the stock position ##

Purchase orders exceeding Rs.3

lakh

For the month

Cumulative upto the month

For the month (Rs.)

Cumulative upto the month (Rs.)

## In case of deviation from normal purchase procedure or purchase action is taken despite sufficient stock on hand, it should be reported in the following format: Sl. No.

Name of the supplier Amount of the contract

Deviation Response of the material Department


6. Report/ Comment on Excise & CENVAT credit:

a) Whether all sales invoices reflect excise components, if applicable? b) Whether all eligible CENVAT credits are supported by Excise/ Service Invoices and filed

separately? c) Whether both Finance and Marketing Depts. are reconciling Excise Deposit A/c, Cenvat

Credit A/c on Goods and Services related to Inputs and Capital on monthly basis? d) Whether all adjustments are accounted during the month? e) Whether Return is filed within due time?

In addition to the above the Auditor has to furnish the following information:-

Particulars OB

Cenvat credit for

the month/Deposit

Cenvat credit

Utilized

Total CF (available credit as

per return)

Cenvat available

as per books

Reconciliation Remarks

1 2 3 4=(1+2-3) 5 6=Diff of 4& 5 7 Input (Goods)

Input (Services)

Capital (Goods)

A). Cenvat Utilised for the month(total of (3)

B). Balance payable if any C). Cenvat payable for the month (A+B)

OB- Opening balance of CENVAT Credit and CF- Carry forward of CENVAT Credit not utilized.


7. Report/ Comment on VAT, CST & VAT credit:

a) Whether all sales invoices reflect VAT/CST components, if applicable? b) Whether all eligible VAT credits are supported by Tax Invoices and filed separately? c) Whether all adjustments are accounted during the month? d) Whether Return is filed within due time?

In addition to the above the Auditor has to certify the followings:-

Particulars OB

VAT credit for

the month

VAT credit

Utilized

Total CB (available credit as

per return)

VAT available

as per books

Reconciliation Remarks

1 2 3 4=(1+2-

3) 5 6=Diff of 4& 5 7 Input (Goods)

Capital (Goods)

A). VAT Utilised for the month(total of (3) B). Balance payable if any

C). VATpayable for the month (A+B)

OB- Opening balance of VAT Credit and CF- Carry forward of VAT Credit not utilized.

8. Comments on Scrutiny of concessions forms for sale up to month:

Month- Wise

Various conc. Form No.

Amount of sales against each Concession form

Amount for which concession form received

Observations on non receipt/ defective forms, if any

1 2 3


9. Comments on Scrutiny of various statutory returns:

Particulars Coverage (Quarterly/ Half yearly/ Yearly)

Comments

Entry Tax Service Tax (Including refund claims)

TDS/TCS

10. Comments on Scrutiny of various ledgers/ sub-ledgers:

Particulars Coverage (Quarterly/ Half yearly)

Comments

Sundry Debtors

Sundry Creditors

Others

11. Comments on verification of Establishment:

Particulars Coverage Comments

Payroll Leave records Unpaid wages registers and other establishment records / registers

Fixation of pay on promotion and revision of scales

Recovery of TDS from employees including perquisite valuation.

PF Loans (refundable & non-refundable)

Recovery of loans from employees including PF loans

LTC Availment / Encashment

Leave Encashment Overtime wages


12. Report on physical verification of Stores & spares :

Number of items verified Whether posting of SRV/RV

and SIV/IV are made in Bin Cards (One week sample verification)

Comments For the month Cumulative upto the

month

Perpetual Interim Physical verification report of the same to be submitted by January and final report latest by 10th of April.

13. Report on physical verification of Fixed Assets : Physical verification report of fixed assets as at the opening of the financial year should be submitted by November and for the additions made during the year the verification report should be submitted with the report for the month of March.

14. Scrutiny of non-moving items of stores. : Yearly (With the report of March)

a) Whether any items procured for such stores

b) Whether any items issued from such stores

c) Whether any items disposed off from such stores

d) Observations on the action taken by Unit for disposal/usability of non- moving stores.

e) Observations on the reasons for accumulation of non-moving stores.

15. Other Reports: Auditor may report any other matters in this para if he thinks that it is material to inform to the management for necessary action or otherwise.


While finalizing the report the auditors should consider the followings:

1. Report on Audit of Establishment related payments: a. Auditor is advised to select 25% of employees on random basis and verify entire cycle starting from recording of attendance to disbursement of salary.

b. This includes verification of preparation of wage bill and inputs considered for its preparation. c. Scrutiny of leave records maintained by the Unit and its system of posting leave earned and leave availed (Both earned leave and half pay leave). d. System of recording attendance of the employees. e. Method of recording overtime performed, recommending authority and document furnished to finance department to include in the wage bill and computation formula adopted for determining overtime amount. f. Verification of other variable data forwarded by other departments/agencies to finance department for preparation of wage bill. Scope includes the verification of sources data also to ensure its authenticity and official authorizing such recovery/payment. g. Auditor is requested to comment on the system presently being practiced relating to establishment matters and offer his suggestions for further improvement.

2. Report on Audit of Capital procurement including expansion program:

a. Verification of schemes capitalized or transfer to capital work in progress b. To verify all capital job value exceeding Rs 2.00 lakh during the year. c. It has to be “End-to-End” viz. from the time of raising the indent to completion of

procurement and capitalization. The report should cover whether the Unit has followed approved purchase procedure.

d. To verify whether capital value of the asset has been correctly determined. e. Codification of asset and its capturing in the asset register to be reported. f. Auditor is requested to offer his comments on the system for further improvement.

3. Report on Purchases valuing more than Rs 3.00 lakh. Detail report on whether purchase of stores and spares items are made after

considering the stock position. Whether any procurement action has been taken when existing stock was not moving. Whether laid down purchase procedure has been followed in placement of the order(s).


4. Report on Physical verification of fixed assets:

Physical verification of fixed assets as at the opening of the financial year latest by end November and for the additions made during the year the verification is to be completed latest by 15th April. Auditor is requested to ensure that asset codifications along with location code are properly marked on the assets concerned as per Administrative Instruction issued by the company and the same is captured in the asset register. The Unit also maintains necessary documentary evidence of transferring of asset from one location to other and suitably incorporating the Unit keeps the changes in asset register and necessary installation/completion certificates.

5. Report on Physical verification of stores and spares:

• Auditor is requested to draw detail program to ensure that complete verification of all items are

covered during the year. You may inform the program to head of the Unit to facilitate necessary support service of Stores Department.

• Verification of posting of Receipt vouchers (RV) and Issue Vouchers (IV) in bin card for one week along with physical verification

• Verification of year end bifurcation of stores into capital & revenue. • Capital stores scrutiny with specific reference to stand-by equipment.

6. Any other specific area of audit as assigned by the management relating to that Unit and

such report need to be submitted within the stipulated time specified in the communication.


Annexure-III" Audit Calendar of the Internal Auditors (Outsourced) – Manavalakurchi

Calendar for submission of the reports - Manavalakurichi

Sl No

Nature of work Date of submission of report

1 Monthly audit reports By 15th of the following month

2 Report on Establishment system By end of October

3 Audit of capital procurement including expansion program

First report by end October and Second report by end April.

4 Report on Purchases valuing more than Rs 3.00 lakh.

First report by October and final report by March.

5 Physical verification of assets Report for the assets as on the opening day of the financial year by November and for additions latest by April.

6 Verification of procedure of placement of works contract including shipping contract (Value exceeding Rs 3.00 lakh)

First report by end October and Final report by end February.

7 Physical verification of Stores and spares

Perpetual. Interim report to be submitted by January and final report latest by 10th of April.

8 Service tax including refund on exports.

By 10th of the following month after completion of the quarter.

9 Any other specific item / issue As per the communication.
