details - The Andrew Yule Group

ANDREW YULE & COMPANY LIMITED[A Govt. of India Enterprise]8, Dr. Rajendra Prasad Sarani, Kolkata–700001Offers are invited from the Firms separately for selection of Internal Auditors for our 12 (twelve) Nos.of Tea Gardens located at Assam and West Bengal (Tender Ref.IA-1) and for Electrical Factorieslocated at Kolkata ad Chennai, for Engineering Factory located at Kalyani (Tender Ref.IA-2) and forHooghly Printing Works located at West Bengal, Kolkata (Tender Ref.IA-3).GENERAL TERMS AND CONDITIONSSECTION-I : Terms of ReferenceDetailed Terms of Reference (TOR) defining the functional areas, checks to be performed,frequency of verification, reference to the Organisation policies and the reporting requirementsare given in Annexure 1. These are to be strictly adhered to.Reporting and Timing :The half-yearly/yearly comprehensive Audit Report covering all the points defined in the TOR shouldbe submitted after discussio with the Auditee within 30th of the following half-yearly/yearly addressedto Chief of Internal Audit, Head Office.Pre-Qualificatio Criteria :SECTION-II : Eligibility Criteria[I]The Audit firm must be empanelled with C&AG for the year 2012-13 and the particulars of theFirm HO, BO and Partners and paid Qualified Accountants should match with the certificateissued by ICAI.[II] The Firm must qualify following minimum criteria :Sl.No. Particulars Minimum Criteria01 Number of Full Time Fellow Partners associated with the Firm for not lessthan 3 years (As per Certificate of ICAI as on 01.01.2013) i.e. such partners 3should continue to be a fellow member during all the three years02 Turnover of the Firm (Average annual in last three financial years) MinimumRs.20 lakh03 No. of years of Firm Existence as per ICAI Certificate 5 Years04 Tea Division [Tender Ref.IA-1]:No. of Internal audit assigments of entire activities of Tea Companieshaving at least four Gardens/Estates in a Group (Production of the Group 5at least 40 lakh kgs.) in a span of last three consecutive years.Engineering/Electrical [Tender Ref.IA-2]:No. of Internal audit assigments of PSUs or Public Ltd. Companies on Engineering/ElectricalIndustry having a turnover of not less than Rs.20 crore for 5the years for which the Internal Audit has been done in the last 3 consecutive years.Hooghly Printing [Tender Ref.IA-3] :No. of Internal audit assigments of PSUs or Public Ltd. Companies onPrinting Industry having a turnover of not less than Rs.05 crore for the years 5for which the Internal Audit has been done in the last 3 consecutive years.

[a] Supporting Documents for Eligibility Criterions :Following supporting documents must be submitted by the Firm alongwith the technical proposal :[i] For Sl.No.1 above, the firm must submit an attested copy of Certificate of ICAI as on 01.01.2013.[ii][iii]For Sl.No.2, the firm must submit, a copy of the Annual Report for the last three years otherwisea Certificate issued by any CA Firm may also be provided in this regard giving the break-up ofFees (Audit Fee, Taxation and Others).For Sl.No.4, the firm must submit a copy of the appointment letters from the auditee organisations.Branch Audit of any Bank shall not be considered while taking into account the total number ofassignments.[III][IV]The firm or any partners of the firm should not be black listed by any PSUs or Govt. Company or any otherorganisation in respect of any assignment or behaviour.The selection of the Firm shall be made on ranking on the basis of above cited criteria.General Guidelines :SECTION-III : Guidelines for submitting the ProposalsAudit Firms are required to submit the proposal as per the guidelines and formats detailed out in the following paras :[1] The original and all copies of the Technical Proposal shall be placed in a sealed envelope clearly marked“TECHNICAL PROPOSAL”with Tender Ref.No. Similarly, the original Financial Proposal shall be placed in aseparate sealed envelope clearly marked “FINANCIAL PROPOSAL” with Tender Ref.No. followed by the nameof the assignment, and with a warning “DO NOT OPEN WITH THE TECHNICAL PROPOSAL”. The envelopescontaining the Technical and Financial Proposals shall be placed into an outer envelope and sealed. This outerenvelope shall bear the submission address, reference number and title of the Assignment, and be clearlymarked “DO NOT OPEN, EXCEPT IN PRESENCE OF THE OFFICIAL APPOINTED”. AYCL shall not beresponsible for misplacement, losing or premature opening if the outer envelope is not sealed and/or marked asstipulated. This circumstance may be case for proposal rejection. If the Financial Proposal is not submitted in aseparate sealed envelope duly marked as indicated above, this will constitute grounds for declaring the proposalnon-responsive.[2] Team Composition for the assignment should be as specified in Form T-2 and T-3.[3] Association with Other Firms and Quality Assurance :Given the number of locations to be audited in various States, a firm (called Lead Firm) meeting the minimumcriteria may associate itself with others firms for the purposes of providing a bigger pool of experts/qualified stafffor the purpose of this assignment. In such a case, the proposal should clearly indicate the lead firm (LeadAuditor) of the joint venture. Similar details of all the firms participating in the joint venture should be provided.In such instance responsibility for Quality Assurance of the assignment in accordance with Engagement andQuality Control Standards promulgated by ICAI shall continue to vest with the Lead Firm, with particular referenceto standards on relying on work done by other auditors and maintenance of working papers.[4] Single Proposal :A firm should submit only one proposal in each segment/division i.e. Tea Division (WB), Tea Division (Assam),Electrical, Engineering and Hooghly Printing where they are suitable. If a firm submits or participates in morethan one proposal in the same segment/division, all such proposals shall be disqualified.[5] All agencies must comply with the Technical Specification, General Conditions and Format/Requirements forTechnical and Financial proposal.[6] The Technical Proposal shall be marked “ORIGINAL” or “COPY” as appropriate. All required copies of theTechnical Proposal are to be made from the original. If there are discrepancies between the original and thecopies of the Technical Proposal, the original governs.

[7] Financial proposals submitted by the firm should be valid for 6 months from the date of submission of theproposal by the firm.[8] Financial bids of only those firms who qualify in the Technical Proposal would be opened for evaluation.[9] The bid amount shall constitute the sole criteria for evaluation of financial bids.[10] Each page, Form, Annexure and Appendices of the Technical and Financial Proposal must be signed by theAuthorised signatory of the Firm.[11] All blank spaces in the financial proposal must be filled in completely where indicated, either typed or written inink.[12] AYCL reserves the right to accept or reject any application without giving any explanation and AYCL alsoreserves the right to segregate the assignments between two or more Firms.[13] The Internal Audit team should adhere to the office timing of AYCL strictly.[14] Award of Contract :On completion of selection process, the firm selected shall be awarded the contract of audit by issuing the Letterof Appointment (LOA). Based on the performance, the contract may be extended on yearly basis on mutualagreement maximum upto 4 years.[15] Payment Terms :[a][b]Audit Firm will be required to quote the professional fees as per the Annexure of Financial Bid givenherewith. The rates invited will be exclusive of Travelling Expenses, Stationery Expenses, CommunicationExpenses and all other out of pocket expenditure relating to the said assignment. However, the ServiceTax at the applicable rate may be added separately.Fees will be paid half yearly/yearly basis on submission of Internal Audit Report. The professional feesshall be paid within 15 days from the receipt of the Final Internal Audit Report.[16] Contract Termination :In the event of gross negligence, irregularity, laxity or misconduct undue delay in submission of monthly reportson the part of the Firms personnel, the contract may be terminated. The violation of any of the terms of referencewill invoke penalty. It will be the responsibility of the Firm to complete the assignment with full knowledge andexperience of the work with proper care and time. Failure to do so leading to either undue delay or laxity orfailure or incorrect report will make the Firm liable for being removed from the contract after issuing the notice of15 days as well as disciplinary action.Technical Proposal :[i][ii][iii][iv][v]Letter of Transmittal (Form T-1)Details of the Firm along with Details of Partners (Form T-2)Details of Qualified Staff and Semi-qualified Staff (Form T-3).Description of Approach, Methodology and Work Plan for performing the Audit of AYCL (Form T-4).Brief of the relevant experience (Form T-5).Financial Proposal :[i][ii][iii]The financial bid shall be submitted only for the professional (audit) fee to be charged by the Firm. This audit feeshall be exclusive of taxes. The financial bid shall be submitted as per Form F-1. (State-wise fee should bequoted and all the boxes should be filled. Wherever the firm not bidding please mention “Not Bidding”).Single audit fee shall be quoted in case of Joint Venture or Associations.Percentage (or proportion) of funds involved/turnover shall not be basis for quoting the audit fee.

FORM T-1Letter of TransmittalTo...................................................................................................................................................Dear Sir,We, the undersigned, offer to provide the internal audit services for AYCL in accordance withyour request for proposal dated (insert date). We are hereby submitting our proposal, whichincludes this Technical Proposal, and a Financial Proposal sealed under a separate envelope.We are submitting our Proposal in association with (insert a list with full name and addressof each associated Audit Firm).We hereby declare that all the information and statements made in this Proposal are trueand accept that any misinterpretation contained in it may lead to our disqualification.The prices quoted by us in the Financial Proposal (Form F-1) are valid till six months fromthe date of submission of the quotation. We confirm that this proposal will remain bindingupon us and may be accepted by you at any time before the expiry date.Prices have been arrived independently without consultation, communication, agreement orunderstanding (for the purpose of restricting competition) with any competitor.We agree to bear all costs incurred by us in connection with the preparation andsubmissionof the proposal and to bear any further pre-contract costs.I confirm that I have authority of (insert Name of the Firm) to submit the proposal and tonegotiate on its behalf.Yours faithfully,

FORM T-2Particulars/Details of the FirmSl.No. Particulars Supporting Documents required to be submittedalongwith this Form[01] Name of the Firm[02] Addresses of the Firm :Head OfficePhone No.Fax No.Mobile of Head Office In-chargeBranch Office 1, 2, 3...........(particulars of each branch to be given)Phone No.Fax No.Mobile of Branch Office In-charge[03] Firm Income Tax PAN No. Attach copy of PAN Card[04] Firm Service Tax Registration No. Attach copy of Registration[05] Registration No. with ICAI[06] Empanelment No. with C&AG Attach proof of latest empanelment with C&AGfor the year under Audit.[07] No. of years of Firm Existence andDate of establishment of FirmAttach copy of Partnership Deed[08] Turnover of the Firm in last three years Attach balance sheet of the last three yearsor a CA Certificate.[09] Annual Average Turnover with Breakup of fee towards Audit, Income Taxmatters and others (specify)Provide a Chart[10] Audit Experience/assignments of the Firm :[i] Tea Division[Tender Ref.IA-1]:No. of Internal audit assigments ofentire activities of Tea Companieshaving at least four Gardens/Estatesin a Group (Production of the Groupat least 40 lakh kgs.) in a span of lastthree consecutive years.[ii] Engineering/Electrical Copy of Appointment Letter alongwith a[Tender Ref.IA-2]:certificate of completion of assignmentsNo. of Internal audit assigments of from Audittee Organisation.PSUs or Public Ltd. Companies onEngineering/Electrical Industryhaving a turnover of not less thanRs.20 crore for the years for which theInternal Audit has been done in the last3 consecutive years.[iii] Hooghly Printing[Tender Ref.IA-3] :No. of Internal audit assigments ofPSUs or Public Ltd. Companies onPrinting Industry having a turnover ofnot less than Rs.05 crore for the yearsfor which the Internal Audit has beendone in the last 3 consecutive years.

Sl.No. Particulars Supporting Documents required to be submittedalongwith this Form[11] Details of Partners :Provide following details.[i][ii][iii][iv][v][vi][vii][viii]Number of Full Time FellowPartners associated with the Firm. Attested copy of Certificate of ICAI as on 01.01.2013Name of each Partner.Date of becoming Associate/Fellow MemberDate of joiing the FirmMembership No.QualificationExperienceWhether the partners is engagedfull time or part time with the firm.[12] If applying in Joint Venture, then provide Letter jointly signed by all the firms participatingsimilar details for the firms participating in Joint Venture whereby they have agreed for thein Joint Venture.Lead Auditor.[13] Indicate the Lead Auditor in the Joint Letter jointly signed by all the firms participatingVenture.in Joint Venture whereby they have agreed for theLead Auditor.

FORM T-3[A]Details of Qualified Accountants(please provide attested copy of Certificate of ICAI as on............................ for each qualified staff)Sl.No. Name of Staff Length ofAssociation withthe Firm (inyears)EducationalQualificationArea of KeyExpertiseMembershipNo.RelevantExperience[B]Details of Semi-qualified Staff (including Clerks etc)Sl.No. Name of Staff Length ofAssociation withthe Firm (inyears)EducationalQualificationsArea of KeyExpertiseRelevantExperienceRemarksSemi-Qualified Staffs :Clerks :Others :

FORM T-4Description of Approach and Work Plan for performing the Audit ofAYCL[A] Technical Approach :The Firm should chalk out a plan to carry out the assignment, if awarded, in such amanner so that the audit should be completed and report must be submitted within30th October for first six months and within 30th April for next six months where auditassignments are to be carried out twicely. In case of Audit assignments only once ayear the report should be submitted within 30th April[B] Work Plan :The firm should propose the main activities of the assignment, their contet and duration,phasing and inter-relations, milestones and delivery dates of the reports. The proposedwork plan should be consistent with the technical approach showing understanding ofthe TOR and ability to translate them into a feasible working plan.

FORM T-5Brief of Relevant ExperienceExperience of audit in relation to the audit of Companies.Sl.No.Name of theAuditeeName of theOrganisationOrganisation Type/Nature ofAssignmentScope andCoverage of theAssignmentDuration of Completionof AssignmentProof of the letter ofWork or Assignmentawarded by the AuditeeOrganisation (pleaseattach a copy of theletter)

FORM F-1FORMAT FOR FINANCIAL BIDItem or ActivityAssamTea DivisionWestBengalWestBengalElectricalDivisionChennaiEngineeringDivisionWestBengalHooghlyPrintingWestBengalTotal Amount(Both inNumericand in Words)Audit Fee(Exclusive ofService Tax andCess on ServiceTax)(Rupees...................................................................................................................................)To be arrived based on the estimated man days for each category of staff proposed for the assignment.Note : Percentage of funds involved shall not be a basis of quoting the Audit Fee.Date :..................................Signature of the Authorised Signatory

ANNEXURE –1[1] Company : Andrew Yule & Co. Ltd. a Government of India Enterpriseengaged in manufacturing and selling of Electrical,Engineering Goods, Cultivating, manufacturing and sellingof Tea in their Assam (7 Gardens) and West Bengal Gardens(5 Gardens). Its Subsidiary Company Hooghly Printing Co.Ltd. engaged in Printing Works.[2] Area of Audit : Separately enclosed for each Division and Hooghly PrintingCo. Ltd.[3] Frequency of Verification : Electrical Division :Kolkata Unit – Twice a YearChennai Unit – Once a YearEngineering Division :West Bengal (Kalyani) – Twice a YearTea Division :Assam Gardens – Twice a YearWest Bengal Gardens – Twice a YearHooghly Printing Co. Ltd. :West Bengal – Once a Year[4] Reporting Requirements : The Audit Report of each Division/Unit/Company to besubmitted covering all the points mentioned in the Scope ofWork, within 30th of the following half yearly/yearly,addressed to Chief of Internal Audit, Head Office.

LOCAL PURCHASE :System of awarding contacts – selection of contractors or suppliers fixation of rate etc.System of payments of contractors / suppliers including payment of advanceReview of liability list including system of liability booking and also payment against liability.GRATUITY :Verification of gratuity payments – Whether gratuity calculation is made as per payment of gratuity act.Maintenance of statutory records for gratuity payments showing date of birth, date of joining and date ofretirement as per PF statements, LIC ID etcFUEL CONSUMPTION :Coal, HSD Oil TD Oil, Electricity.Generator Log BookVehicle Log Book – per KM consumption for each vehicle.FIXED ASSETS :Verification of actual utilization of the new addition vis-à-vis projection made in the “Capital ExpenditureAuthorization”.SCRAP :Checking of scrap records for both generation as well as disposal.BOUGHT LEAF OPERATIOIN :Detail checking of bought leaf operation with special emphasis on different aspect of purchase of green leaffixation of rate, checking of leaf count. Recovery percentage achieved out of such green leaf vis-à-vis targetedpercentage.TAX MATTERS :Checking of garden-wise status for submission of returns, completion of assessment, payment of tax, liabilitytowards interest and penalty etc. partnering to sales tax, service tax matter and tea cess.Checking of deduction of income tax for various payments made to contractors as per provision of theact and timely deposit of the same before the authority.HOSPITAL :Checking of hospital records vis-à-vis leave records regarding sick and maternity leave.Checking of payment of sick allowance and maternity benefits from hospital records as well as worksaccounts records including system of payment.Scrutiny of expenses incurred for cost of medicine including cost for outside treatment, cost of food etc.Checking attendance records of hospital staff.REPAIR & MAINTENANC : Building repair –[a][b][c]System of undertaking the job of repairPayment and booking of repair expensesMaintenance records of repair.

Machinery repair –[a][b]System of machinery repair, System of undertaking any repair and how selection of supplier isbeing made whether machine wise repair register is maintained and expenses incurred from yearto year are recorded therein.Whether the parts replaced are entered in the scrap register. Transport repair –[a][b]System of vehicle repair, System of undertaking any repair and how selection of supplier is beingmade whether vehicle wise repair register is maintained and expenses incurred from year to yearare recorded therein.Whether the parts replaced are entered in the scrap register.SALES AND MARKETING :Time lag between production, despatch, receipt at warehouse and sales.Basis followed in selecting despatch destination/auction center vis-a-vis rate realised thereof.Basis of pricing of tea sold in packed form.Basis of control of grade % vis-a-vis market demand.Analysis and movement of sample tea.Age-wise analysis of tea stock holding.Checking the system of billing of warehouse charges.Export and speciality tea sales and system analysis.Audit of system followed in private and consignment sale.

MAJOR AREAS OF AUDIT TO BE COVEREDELECTRICAL DIVISION (KOLKATA AND CHENNAI OPERATIONS) ANDENGINEERING DIVISION[I] Payment of Statutory Dues and submission of Statutory Return.[II]Checking of TDS records, their deposit and submission of returns[III] Review of outstanding “C” forms[IV] Analysis of lost tender for last 2 years including current year.[V] Job Costing vis-à-vis Labour booking.[VI] Order booking target vis-à-vis actual order.[VII] Examination of system of making cost estimate for tendering purpose.[VIII] CENVAT & VAT Credit.[IX][X][XI]Planning function.Follow-up of last year’s Audit ReportMaintenance of Scrap Records and disposals[XII] Sales Function[XIII] Debtors[XIV][XV][XVI][XVII]PurchaseInventory ControlReview of 3 rd Party OperationReview of Suppliers Advance, Staff Advance and Tour Advance[XVIII] Insurance claims[XIX]Miscellaneous Matters

MAJOR AREAS OF AUDIT TO BE COVEREDHOOGHLY PRINTING COMPANY LIMITED[1] Review of purchase of paper and ink – Detail review of Purchase with reference to the Customer’s Order.[2] Sales –[i][ii]Order position with expectancy of order intake to achieve budgeted target;Analysis of outstanding Debtors.[3] Review of Payment to Creditors in respect of Credit terms;[4] Fixed Assets – record keeping, physical verification.[5] Detail review of Third Party operations.[6] Insurance.[7] Review of outstanding Staff Advance & other Advances.[8] Review of payment of Statutory Dues & submission of Statutory Returns.[9] Checking of TDS records; their deposit (both Income Tax & Service Tax) & submission of Returns.[10] Review of VAT Input Credit.[11] Analysis of lost tenders for last two years including current year.[12] Job costing vis-à-vis labour booking.[13] Examination of System of making cost estimate for tendering purpose.[14] Inventory control.[15] Follow up of last year audit report.[16] Miscellaneous Matters.