NTPC LIMITED

(A Govt. of India Enterprise)

Corporate Internal Audit

NOTICE INVITING EXPRESSION OF INTEREST FOR EMPANELMENT OF PARTNERSHIP/ LIMITED LIABILITY PARTNERSHIP FIRMS OF CHARTERED / COST ACCOUNTANTS FOR CONDUCTING INTERNAL AUDIT IN NTPC LIMITED AND ITS SUBSIDIARIES FOR THE FINANCIAL YEARS 2014-15, 2015-16 & 2016-17

No: IA/AE/EOI/14-15/1

Dated: 2nd June 2014

EXPRESSION OF INTEREST (EOI)

NTPC Limited, a Government of India Enterprise, invites expression of interest (EOI) from reputed Indian Chartered / Cost Accountant Audit Firms (Partnership/ Limited Liability Partnership) for empanelment as Internal Auditors for the years 2014-15, 2015-16 and 2016-17.

The format of application along with annexures on areas and extent of coverage, reporting requirements, terms of reference, list of units and locations, selection criteria etc. which can be downloaded are available on the website www.ntpc.co.in (Please click the tab “Tender” on the home page and then “Manual Bidding” on the next screen) or www.ntpctender.com. The same can also be obtained from the office of Chief of Internal Audit, NTPC Limited, Core -7, Scope

Complex, 7, Institutional Area, Lodhi Road, New Delhi – 110003 on all working days between 10 AM and 5 PM from 2nd June 2014 to 20th June 2014.

Firms may send their applications in the prescribed format along with annexures under sealed cover to the Chief of Internal Audit, NTPC Limited, Core -7, Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi – 110003 so as to reach this office latest by 4.30 P.M. of 23rd

June 2014.

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NOTICE INVITING EXPRESSION OF INTEREST

TABLE OF CONTENTS

Sl.	DESCRIPTION	Page No.
No.
1.	Format of Application	3	- 5
2.	Annexure – A – Major Areas to be covered		6
3.	Annexure – B – Area and Extent of coverage		7
4.	Annexure – C – Reporting requirements	8	- 9
5.	Annexure – D – Terms of Reference of Internal Audit for NTPC and	10	- 12
	its subsidiaries
6.	Annexure – E – List of Units, their location, minimum man-days for	13
	audit and fees
7.	Annexure – F – Selection Criteria for engaging Internal Auditors for	14
	NTPC and its subsidiaries
8.	Annexure – G – Instructions to Audit Firms and Document List(To	15
	Do List).

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NOTICE INVITING EXPRESSION OF INTEREST

FORMAT OF APPLICATION

1.Name of the Firm:

2.Registration No. of the Firm:

3.Date of Registration of the Firm:

4.Details of Head Office & Branch Office(s): Head Office:

Address	Date of	Contact No(s)/Fax	E- mail
	Establishment

Branch Office 1

Address	Date of	Contact No(s)/Fax	E- mail
	Establishment

Branch Office 2

Address	Date of	Contact No(s)/Fax	E- mail
	Establishment

Branch Office 3

Address	Date of	Contact No(s)/Fax	E- mail
	Establishment

(Insert further Branch office(s), if any)

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NOTICE INVITING EXPRESSION OF INTEREST

5. Details of Partners in the Firm / Limited Liability Partnership:

Sl	Name of the	Membership	Membership Status	Date of
No	Partner	No.	ACA/ACMA/	joining
.			FCA/ FCMA/CISA/	the firm
			DISA	as
				Partner
1.
2.
3.
4.

6. Details of Qualified Assistants:-

Sl.	Name of the Assistant	Membership	Whether	Date of joining
No.		No.	ACA/ACMA/FCA/	the firm as
			FCMA/CISA/DISA	Qualified
				Assistant
1.
2.
3.

7. Details of Semi-Qualified Assistants:-

	Sl.	Name of the Assistant	Whether Cost/	Date of joining the
	No.		Chartered	firm as a Semi-
			Intermediate	Qualified
			–	Assistant
	1.
	2.
	3.
	4.
8. Details of Technical Experts :
	Sl.	Name of the Expert	Engineering field in	Date of joining of
	No.		which qualified	the firm
	1.
	2.
	3.

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NOTICE INVITING EXPRESSION OF INTEREST

9. Details of Experience in Power Sector:

	Sl.	Name of the	Year of Audit	Type of Audit - whether
	No.	Company/Unit		Statutory or Internal Audit
	1.
	2.
	3.
10.Details of Experience in other than Power Sector:
	Sl.	Name of the	Year of Audit	Type of Audit - whether
	No.	Company/Unit		Statutory or Internal Audit
	1.
	2.
	3.
11.Details of Experience in other assignments:
	Sl.	Name of the	Year of Audit	Type of Audit - whether
	No.	Company/Unit		Physical verification of
				Fixed Assets/Stores
	1.
	2.
	3.
12.Readiness for Audit under IFRS compliance guidelines					Yes/No

13.Income Tax PAN No. of the Firm:

14.Service Tax Registration No. :

15.Bank details for EFT:

1.	Bank Name, Address and Telephone No.
2.	Branch Name, Address & Code
3.	Bank Account number with style of
	account, Saving/Current
4.	IFSC code no. of the Bank
5.	A cancelled cheque of the said Bank

Signature of Partner with

Name & Seal of the Audit Firm.

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NOTICE INVITING EXPRESSION OF INTEREST

ANNEXURE – A

MAJOR AREAS TO BE COVERED DURING THE AUDIT OF PROJECTS/STATIONS

Sl. No.	ITEM
I	Works including O&M contracts (Pre-award and Execution)
II	Procurement – (Pre-award and Execution)
III	Accounts including establishment accounts
IV	Human Resources Department (HR Establishment)
V	Stores
VI	Auto Base and Construction Equipment
VII	Township, Guest House and Hospital
VIII	Operations

Detailed guidelines for the above areas will be given at the time of appointment.

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		NOTICE INVITING EXPRESSION OF INTEREST
			ANNEXURE – B
		AREA & EXTENT OF COVERAGE
Sl.No.	Area		Coverage in each
			phase
I	WORKS INCL. O&M CONTRACTS (Pre-award and execution)
	i)	Contracts with value more than Rs.20 Lakh	100%
	ii)	Contracts with value Rs.20 Lakh or less	50%
II		PROCUREMENT (Pre-award and execution)
	i)	P.Os with value more than Rs.20 Lakh	100%
	ii)	P.Os with value Rs.20 Lakh or less	50%
III		ACCOUNTS
	i)	Bank Payment Documents (for 3 complete months)	50%
	ii)	Documents for Bank Receipt	100%
	iii)	Documents for Adjustments	100%
	iv)	Review of Bank Reconciliation Statements (BRS)	100%
IV		ESTABLISHMENT – ACCOUNTS
	i)	Checking of Off-Cycle payments w.r.t rules and proprietary aspects	50%
		(for 3 complete months other than those covered in III(i) above)
	ii)	Review of Subsidiary Ledgers	100%
V		ESTABLISHMENT – HR
	i)	Leave Records	100%
	ii)	LTC Records	50%
	iii)	Documentation for Advances	50%
	iv)	Ticket Booking	50%
	v)	Training activities	25%
VI		STORES
	i)	Documentation and procedures	2 months
	ii)	Review of claims	100%
	iii)	Accounting and Review of Suppliers’ Sub-ledgers	100%
	iv)	Review of Returnable Gate-Pass system	100%
	v)	Test-checking suppliers’ bills w.r.t policies & circulars	50%
VII		AUTOBASE AND CONSTRUCTION EQUIPMENT
	i)	Proprietary Aspects	100%
	ii)	Accounts	100%
VIII		TOWNSHIP, GUEST HOUSE AND HOSPITAL
	i)	Proprietary Aspects	100%
	ii)	Accounts	100%
IX		AUDIT OF OPERATIONS
	i)	Fuel Accounting records	100%
	ii)	Verification of Fuel Price Adjustment	100%
	iii)	Review of Monthly Operating Results	100%

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Annexure - C

REPORTING REQUIREMENTS

Internal Audit Reports should be divided into five separate parts, namely:

PART- I IMPORTANT OBSERVATIONS, OBJECTIONS AND RESERVATIONS:

This part should contain the auditors comments on all such irregularities or occurrences which auditors want to bring to the notice of management, along-with their financial implications, if any. This part should also bring out deviations (non - compliances) by units from (with) policies, systems and procedures prescribed by NTPC. Any non-compliance with the matters/areas specified in the Guidelines for Internal Audit (to be provided at the time of appointment) should also be identified here. The observations should be arranged in self-contained paras, preferably with suitable titles.

PART – II COMPLIANCE REPORT:

Auditors to Report on compliance of internal audit observations outstanding as at the end of the previous half year (that is, as contained in the Report of the preceding phase). For example, while submitting the internal audit report of Phase – I for the current year(say, 2014-15) it may be ensured that a compliance report on audit observations contained in Phase - II report of the previous year (i.e. 2013-14) as well as on such observations contained in reports of earlier years, pending settlement, is included and details of corrective actions taken on those observations are furnished in the current year's Phase – I audit report.

PART – III REPORT ON TESTING OF EFFECTIVENESS OF INTERNAL CONTROLS:

An element of risk-based auditing has been made a part of the scope of Internal Audit. This has been done by the inclusion of a checklist w.r.t the Internal Control Framework in vogue in NTPC. For this purpose, a separate checklist for testing the effectiveness of certain chosen controls has been included in the Guidelines for Internal Audit which will be issued along with the appointment letter. The said checklist also details the process involved for conducting such tests. Auditors are required to complete the procedure outlined in the checklist and include their findings on such ICF testing in Part III of their report.

PART – IV

REPORT ON CONTRACTS / P.Os PLACED ON SINGLE TENDER BASIS:

It has been decided that internal auditors will report separately on Contracts / Work Orders (W.Os)/Purchase Orders (P.Os) placed on Single Tender basis. The coverage of such contracts and the format for such reporting is included in the Guidelines for Internal Audit (to be provided at the time of appointment) which may kindly be adhered to.

PART – V DETAILED REPORT:

This part shall comprise auditor’s detailed observations regarding areas specified in the Guidelines for Audit. However, non-compliance with the matters / areas specified in the Guidelines which are identified in Part I of the report, should also be invariably detailed in Part V. While Contracts/W.Os. / P.Os placed on Single Tender basis should be reported in Part – IV of the report, auditors should report their findings on all Contracts/W.Os. / P.Os placed on other than Single Tender basis in this Part (i.e. Part V), in the format included in the Guidelines for Internal Audit.

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NOTICE INVITING EXPRESSION OF INTEREST

The following may also be kindly ensured:

(a)The report should be supplemented, in each phase, by a statement indicating:

(i)Particulars of records checked along with their volume and value as compared to the total volume and value of the transactions. Auditors should also mention the entry date of the last document verified by them in the SAP system.

(ii)A statement indicating the audit personnel deployed, their designation and the period of deployment in each phase.

(b)The report should also contain references to areas where no adverse observations have been noted. In respect of other areas, specific suggestions for improvement, if any, may also be highlighted for each area.

(c)The results of audit should be discussed with Head of Project and Finance in each phase and important observations should be brought to their notice so that timely corrective actions may be taken. The report should be prepared after duly taking into account the additional information that may be provided / obtained at such discussions.

(d)The reports are to be submitted in seven copies for each phase of audit to the Corporate Internal Audit Department of NTPC at New Delhi. Contents of Internal Audit Report have also to be submitted on 3 CDs written in MS Office 2003 (WORD / EXCEL) or Office 2003 compatible mode and a soft copy is also to be emailed to the following ids pramrakhiani@ntpc.co.in & akacharya01@rediffmail.com.

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NOTICE INVITING EXPRESSION OF INTEREST

Annexure - D

TERMS OF REFERENCE OF INTERNAL AUDIT FOR NTPC AND ITS SUBSIDIARIES.

The terms and conditions for conducting Internal Audit in NTPC and its Subsidiary Companies are recommended hereunder:-

Internal audit shall be conducted in 2 phases (Phase –I covering April to September and Phase –II covering October to March). The commencement of Phase – I audit will be on/around 5th September and Phase –II will be on/around 5th March and the reports for Phase –I & II are to be submitted by 5th October and 5th April respectively.

1. AUDIT TEAM

Auditors should deploy a suitable team for undertaking the audit, after a thorough perusal of the requirements of the appointment letter, terms & conditions contained therein and the Detailed Guidelines for Internal Audit, ensuring that the size of the audit team is commensurate with the size of the auditee unit and the volume of work involved. The Head of Finance of the Unit will coordinate with the Audit Team for smooth functioning of the audit.

It should be ensured that the audit team is headed at all times by a Chartered / Cost Accountant (who may be a Partner) with CISA / DISA and prior experience of auditing on the SAP-ERP platform. A minimum number of man-days are needed to be devoted at Project site by the firm in each phase of audit. These are specified unit-wise in Annexure – E. If the dealing partner / team leader does not have CISA / DISA or does not have prior experience of auditing on the SAP-ERP platform, then another Chartered Accountant with such qualification / experience should be deployed in addition to the team leader / Partner for the duration of audit.

2. AUDIT REPORT

The auditor should give report for each Phase as per the requirement of Annexure - C .

3. AUDIT FEE, TRAVELLING EXPENSES & MINIMUM MANDAYS PER PHASE

Audit fee and Minimum Man-days per Phase of audit for each unit/station are given in Annexure - E.

The Audit Team will be paid for each Phase of audit, one time to & fro journey fare by Air or Rail for each Phase of audit. Journey should be performed by the shortest route in the entitled class given below:-

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NOTICE INVITING EXPRESSION OF INTEREST

Entitled person	Mode & class of Travel
One Partner	Economy class (preferably APEX fare) by AIR /
	AC Ist Class by Rail
Others:	AC 2 Tier / Ist Class by Rail

Boarding, Lodging and Local Transportation will be provided by the Company free of cost at the Units.

Service tax, as applicable, will be paid as per the Service Tax Act.

4.PAYMENT OF AUDIT FEES

The Firm shall be eligible to 50% of the audit fee in each phase. Such fee shall be released only after submission of report for that phase followed by the bill along with stay certificate issued by Head of Finance of the unit and all supporting evidences/documents required to process such bills.

5.GENERAL TERMS AND CONDITIONS

i.Only those Audit firms that secure 80% marks and above as per criteria given in Annexure – F shall be considered for empanelment.

ii.This EOI is only for the purpose of short-listing/empanelment of Firms and does not carry any assurance for allotment of Internal Audit assignments.

iii.Only empanelled firms will be intimated about their selection in due course.

iv.The Company reserves its right to accept or reject any application/s without assigning any reasons therefor. The decision of the Company for empanelment of the Firms will be final and binding upon the parties participating in the short-listing/empanelment.

v.The appointment of an Audit Firm will be made from the empanelled list of firms keeping in perspective proximity of its office to the project/station (Unit).

vi.The Internal Auditor will ensure that the information obtained in respect of the operation of the Unit is maintained in strict confidence and secrecy. A Certificate towards maintaining confidentiality is to be provided by the Internal Auditor, to whom appointment letter has been issued, at the time of acceptance of Audit assignment.

vii.The appointment of the Audit Firm will be for three years w.e.f. 2014-15, renewable in 2nd and 3rd year (i.e. 2015-16 and 2016-17 respectively) subject to satisfactory performance of the Firm in the Ist and 2nd year.

viii.On renewal of appointment after the first year’s assignment, NTPC may rotate teams of Internal Auditors from one unit to another within the Company.

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NOTICE INVITING EXPRESSION OF INTEREST

ix.In case the Audit Firms, which are already appointed as Internal Auditors, are subsequently appointed in NTPC or its subsidiaries/Joint Venture companies under any statute or under any other obligation, the appointment of such Firm as Internal Auditor shall be withdrawn and fresh appointment from the panel shall be considered.

x.If progress/performance of the audit team is not found satisfactory, NTPC’s management reserves the right to terminate the appointment of the Firm.

xi.The Audit Firm will be debarred from getting, in future, Internal Audit assignments in NTPC and its subsidiaries in the following cases :

a)If the Firm obtains the appointment on the basis of false information/false statement at the time of submission of application/documents for the EOI.

b)The Audit Firm is found to have sub-contracted the work.

c)If the Firm does not take up audit in terms of the appointment letter.

d)If the Firm does not submit the Audit Report, complete in all respect, in terms of the appointment.

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Annexure – E

LIST OF UNITS, LOCATION, MINIMUM MANDAYS AND AUDIT FEES FOR INTERNAL AUDIT

			Minimum man-days per phase
				for
Sl. No.	Name of the Unit	State	Partner/CA	Other Team	Audit Fees (Rs.)
			(as Team
				members
			Leader)
1	RSTPS	Andhra Pradesh	12	58	280,000
2	SimSTPS	Andhra Pradesh	12	58	280,000
3	Bongaigaon	Assam	6	29	135,000
4	Barh	Bihar	8	37	170,000
5	KhSTPS	Bihar	12	58	280,000
6	KSTPS	Chhattisgarh	12	58	280,000
7	Sipat	Chhattisgarh	12	58	280,000
8	BTPS	Delhi	8	37	170,000
9	JGPP	Gujarat	8	37	170,000
10	KGPS	Gujarat	8	37	170,000
11	Fbd GPS	Haryana	8	37	170,000
12	KolHEPP	Himachal Pradesh	6	29	135,000
13	NKSTPP	Jharkhand	6	29	135,000
14	PBCMP+2	Jharkhand	8	37	170,000
15	Kudgi	Karnataka	6	29	135,000
16	RGCCPP	Kerala	8	37	170,000
17	Gadarwara	Madhya Pradesh	6	29	135,000
18	VSTPS	Madhya Pradesh	13	62	300,000
19	Lara	Maharashtra	6	29	135,000
20	Mouda	Maharashtra	10	50	210,000
21	Solapur	Maharashtra	6	29	135,000
22	TSTPS	Odisha	13	62	300,000
23	TTPS	Odisha	8	37	170,000
24	AntaGPS	Rajasthan	8	37	170,000
25	AuGPS	Uttar Pradesh	8	37	170,000
26	FGUTPP	Uttar Pradesh	10	50	210,000
27	NCPP	Uttar Pradesh	12	58	280,000
28	RhSTPS	Uttar Pradesh	13	62	300,000
29	SSTPS	Uttar Pradesh	12	58	280,000
30	Tanda	Uttar Pradesh	8	37	170,000
31	TPNHEPP + Lata TPN	Uttrakhand	8	37	170,000
32	FSTPS	West Bengal	12	58	280,000

Note: For subsidiaries, the fees would be communicated at the time of appointment.

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Annexure – F

SELECTION CRITERIA (POINT ALLOCATION) FOR EMPANELMENT OF AUDIT FIRMS WILL BE AS FOLLOWS

SL.	PARTICULARS		POINTS TO BE	MAXIMUM POINTS
NO.			ALLOCATED
1.0	Year of Establishment of the Audit Firm/Limited	1	(one) per year in	14	(fourteen)
	Liability Partnership Firm	existence (fraction of the
		year to be ignored)
2.0	No. of Partners in the Firm/Limited Liability	a. 2 (two) for each Partner		18	(eighteen)
	Partnership Firm who are with the Firm for a		who is ACA/ACMA
	minimum period of one year as on date of	b. 3(three) for each Partner
	application.
			who is FCA/FCMA
3.0	Number of ACA/ACMA/FCA/FCMA(who may	2	(two) per	06	(six)
	be a Partner) with CISA / DISA	ACA/ACMA/FCA/FCMA
4.0	No. of Qualified Assistants (Chartered/Cost	2	(two) per Qualified	14	(fourteen)
	Accountants ) employed with the Firm		Assistant
5.0	No. of Semi-qualified Assistants (CA /Cost	1	(one) per Semi-qualified	9 (nine)
	Intermediates) employed with the Firm	assistant
6.0	No. of Technical Experts having Engineering	2	(two) per Expert	4 (four)
	background
7.0	Experience of the Firm in Power sector preferably	3	(three) per year of	15	(fifteen)
	under Central/State Government as		Audit (fraction of the
	Statutory/Internal Auditors
		year to be ignored)
8.0	Experience of the Firm in sectors/industries other	2	(two) per year of	20	(twenty)
	than Power under Central/State Government as		Audit (fraction of the
	Statutory/Internal Auditors
		year to be ignored)
	T o t a l p o i n t s			100 (hundred)

Note: Points assigned to experience of the Audit Firms in conducting Internal Audit in NTPC and its subsidiaries from 2011-12 to 2013-14 will not be allocated, if the said Firm has been disqualified during the said years.

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Annexure - G

To Do List

(A)Instructions to Audit Firms:

1.Format of Application must be completely filled in. Incomplete applications will be rejected outrightly.

2.Please ensure that date of opening of Registered Office, Branch Office, entrance dates of all Partners into the firm, date of joining firm as qualified & semi- qualified assistants should be invariably indicated in the application.

3.All EOIs will be evaluated on the basis of the documents furnished along with applications only. No further documents will be called for during the scrutiny of the EOIs. Any additional document received, after last date & time of receiving the EOIs as stipulated in the Notice Inviting EOIs, will not be entertained.

4.Since, all the applications will be evaluated strictly on the basis of Selection Criteria as per Annexure- F, please avoid attaching unsolicted informations/ documents for processing applications expeditiously.

5.All submitted documents should be signed by a Partner with his name and under the seal of the firm.

6.Applications must be submitted under sealed cover superscribing the EOI Notice No. & date and the words 'Application for Empanelment of Internal Auditors for 2014-17 ' thereon. The name and address of the firm must also be indicated on the body of the envelope.

7.Application may be submitted in or by post/ courier to the office of Chief of Internal Audit, NTPC Limited, Core -7, Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi – 110003. NTPC does not take any responsibility for loss of application in transit. Applications sent through Telegram, Telex, Fax or E-mail will not be considered.

8.Any application received after the stipulated date & time, due to any reason whatsoever, will be rejected outrightly.

(B)List of documents to be submitted along with the applications/ EOIs:

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

1.Registration certificate of the firm issued by the Institute of Chartered Accountants of India and/or Institute of Cost Accountants of India. Information related to year of establishment of Head Office & Branch Office(s), addresses, details of partners and their membership nos. etc. as indicated in the Certificate will be treated as conclusive & final information for evaluation of EOIs.

2.Certificates of DISA/ CISA, if any, issued by the respective Institutes.

3.Membership certificates of the qualified assistants issued by the Institute of Chartered Accountants of India and/or Institute of Cost Accountants of India.

4.Certificates/ marksheets issued by the respective Institutes in evidence of qualifications of semi- qualified assistants.

5.Copies of appointment orders for statutory audit/ internal audit in NTPC and its Subsidiaries/ PSU/ Govt./Scheduled Bank in evidence of experience. In case of appointment as internal auditors in NTPC and its subsidiaries for the period of 2011-12 to 2013-14, copies of letters for renewing appointments for FY 2012-2013 & 2013-14 must also be submitted.

6.Copy of PAN Card.

7.Copy of Service Tax Registration.

8.A cancelled cheque of the Bank to which payments will be made.

9.A copy of complete EOI document duly signed and sealed as a token of acceptance of all terms and conditions.

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