1
NTPC LIMITED
(A Govt. of India Undertaking)
NOTICE INVITING EXPRESSION OF INTEREST (EOI) FOR EMPANELMENT OF
FIRMS OF CHARTERED / COST ACCOUNTANTS FOR CONDUCTING INTERNAL
AUDIT IN NTPC LIMITED AND ITS SUBSIDIARIES FOR THE FINANCIAL
YEARS 2017-18, 2018-19 & 2019-20
EOI NO: CC/IA/ EOI/2017-20 Date: 02.06.2017
EOI NO.
CC/IA/ EOI/2017-20
EOI Date
02.06.2017
EOI Beginning Date & Time
02.06.2017 9.00.00 Hrs
EOI Close Date & Time
22.06.2017 16.00.00 Hrs
Source of EOI
Corporate Internal Audit, New Delhi
A complete set of EOI documents as attached below can be downloaded which may
be filled and submitted under sealed cover to the General Manager (Finance)-
Internal Audit, NTPC Limited, Core -7, Scope Complex, Lodhi Road, New Delhi – 110
003 so as to reach latest by 22.06.2017 ( 4.00 p.m.)
2
TABLE OF CONTENTS
Sl.
No.
DESCRIPTION
Page No.
1.
Format of Application
3 - 5
2.
Annexure–A: Selection Criteria for empanelment of Internal Auditors for
NTPC and its subsidiaries
6
3.
Annexure-B: Instructions to Audit Firms and Document List (To Do List).
8 - 9
4.
Annexure–C: Terms of Reference of Internal Audit for NTPC and its
subsidiaries
10 - 12
5.
Annexure–D: Major Areas to be covered
13
6.
Annexure–E: Reporting requirements
14 - 15
7.
Annexure–F: List of Units, their location, minimum man-days for audit
and fees
16 - 17
3
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
Contact Person/Mobile
number/other contact
Nos./Fax
Branch Office 1:
Address
Contact Person/Mobile
number/other contact
Nos./Fax
Branch Office 2:
Address
Contact Person/Mobile
number/other contact
Nos./Fax
(Insert information for additional Branch office(s), if any)
4
5. Details of Partners:
Sl
No
.
Name of the
Partner(s)
Membership
No.
Membership Status
ACA/ACMA/
FCA/ FCMA/CISA/
DISA
Date of
joining the
firm as
Partner
1.
2.
3.
…
6. Details of Qualified Assistants:
Sl.
No.
Name of the Assistant
Membership No.
Whether
ACA/ACMA/FCA/
FCMA/CISA/DISA
Date of joining
the firm as
Qualified
Assistant
1.
2.
3.
…
7. Details of Semi-Qualified Assistants:
Sl.
No.
Name of the Assistant
Whether CA-IPCC/CMA-Inter
Date of joining the
firm as a Semi-
Qualified
Assistant
1.
2.
3.
….
8. Details of Experience of firm in Power Sector as Statutory / Internal Auditors:
Sl.
No.
Name of the Company/Unit
Year of Audit
Type of Audit - whether Statutory /
Internal Audit
1.
2.
3.
….
9. Details of Experience of firm in Physical Verification in Power Sector :
Sl.
No.
Name of the Company/Unit
Year of Audit
Type of Physical Verification-Fixed
Assets / Inventory
5
1.
2.
3.
….
10. Details of Experience of firm in sectors /industries other than power (excluding financial
sector) under Central / State Government / PSUs:
Sl.
No.
Name of the Company/Unit
Year of Audit
Type of Audit – whether Statutory /
Internal Audit
1.
2.
3.
….
11. Details of Experience in Financial sector under Central / State Government / PSUs:
Sl.
No.
Name of the Company/Unit
Year of Audit
Type of Audit – whether Statutory /
Internal Audit
1.
2.
3.
….
12. Readiness for Audit under Ind AS compliance guidelines Yes/No
13. PAN No. of the Firm:
14. Service Tax / GST Registration No. :
Signature of Partner with
Name & Seal of the Audit Firm
6
Annexure – A
SELECTION CRITERIA (POINT ALLOCATION) FOR EMPANELMENT OF AUDIT FIRMS
WILL BE AS FOLLOWS:
SL.
NO.
PARTICULARS
POINTS TO BE ALLOCATED
MAXIMUM POINTS
1
Year of Establishment of the Firm
1 (one) per year of existence
(fraction of the year to be
ignored)
10 (ten)
2
No. of Partners in the Firm who have
been with the applicant Firm for a
minimum period of one year as on the
date of application.
2 (two) for each Partner who is
ACA/FCA / ACMA/FCMA
12 (twelve)
3
Number of branch offices (excluding
head office)
1 (one) per branch
04 (four)
4
Number of partners/qualified
assistants (Chartered/Cost
Accountants ) with CISA / DISA
2 (two) per person
06 (six)
5
No. of Qualified Assistants
(Chartered/Cost Accountants )
employed with the Firm
2 (two) per Qualified
Assistant
10 (ten)
6
No. of Semi-qualified Assistants (CA-
IPCC /Cost -Inter) employed with the
Firm
1 (one) per Semi-qualified
assistant
10 (ten)
7
Experience of the Firm in Power sector
as Statutory/Internal Auditors (refer
note Sl. IV below)
3 (three) per year of Audit
(fraction of the year to be
ignored)
15 (fifteen)
8
Experience of the firm in Physical
verification in Power Sector (refer note
Sl. IV below)
1 (one) per year of Audit
(fraction of the year to be
ignored)
6 (six)
9
Experience of the Firm in
sectors/industries other than Power
(excluding financial sector) under
Central/State Government(s)/ PSUs, as
Statutory/Internal Auditors
2 (two) per year of Audit
(fraction of the year to be
ignored)
18 (eighteen)
10
Experience of the Firm in Financial
sector under Central/State
Government/PSUs as
Statutory/Internal Auditors
1 (one) per year of Audit
fraction of the year to be
ignored)
9 (nine)
T o t a l p o i n t s
100 (One hundred)
7
Note:
I. Experience from the Financial year 2006-07 onwards only shall be considered while
carrying out evaluation for criteria at Sl. No.7 to 10 above.
II. Sl. No. 7 to 10 - Points for each year’s experience shall be awarded irrespective of the
number of audits conducted during that particular year.
III. Power Sector at Sl. No. 7 & 8 would mean an entity engaged in generation/
transmission/ distribution of electricity.
IV. In cases where firm’s experience is in private sector at Sl. 7 & 8 above, auditee entities
with minimum average turnover of Rs 500 Crores in power sector (as defined at Sl. III
above) in any three consecutive financial years starting from 2013-14 would only be
considered.
8
Annexure - B
To Do List
(A) Instructions to Audit Firms:
1. Format of Application must be completely filled in. Incomplete applications will be outrightly
rejected.
2. Please ensure that date of opening of Registered Office, Branch Office(s), entrance dates of
all Partners into the firm, date of joining firm as qualified & semi- qualified assistants are
invariably indicated in the application.
3. A declaration has to be submitted by each audit firm that none of its partner(s) or qualified
employee(s) is a partner in any other audit firm which is applying for the current
empanelment in NTPC. Any EOI without such declaration in this regard shall be summarily
rejected.
4.
All EOIs will be evaluated on the basis of the documents furnished along with
applications only.
5. Since, all the applications will be evaluated strictly on the basis of Selection Criteria as per
Annexure-A,
please avoid attaching unsolicited information/ documents for processing
applications expeditiously.
6. All the documents submitted should be signed by a Partner with his / her name and under
the seal of the firm.
7. Applications must be submitted under sealed cover superscribing the EOI Notice No. __ &
date and the words “Application for Empanelment of Internal Auditors for
Financial years 2017-18, 2018-19 and 2019-20”. The name and address of the firm
must also be indicated on the body of the envelope.
8. Application must be addressed to General Manager (Finance) - Internal Audit, NTPC
Limited, Core -7, Scope Complex, Lodi Road, New Delhi – 110003. It may be delivered in
person also at reception Core -7, Scope Complex, Lodi Road, New Delhi – 110003. NTPC
does not take any responsibility for the loss of application in-transit. Applications sent
through Fax or E-mail will not be considered.
9. Any application received after the stipulated date & time, due to any reason whatsoever,
will be rejected.
(B) List of documents to be submitted along with the applications/ EOIs:
Interested firms are advised to go through the contents of the EOI documents carefully
and submit self attested copies of the following documents in proper sequence along with
the EOIs as described hereinafter:
1. Latest registration certificate of the firm issued by The Institute of Chartered
Accountants of India / The Institute of Cost Accountants of India w.r.t the information
related to the year of establishment of Head Office, Branch Office(s), address (es),
details of partners along-with their membership nos. etc. Particulars as indicated in the
Certificate(s) will be treated as conclusive and used for the purpose of evaluation of
EOIs.
2. Certificates of DISA/ CISA, if any, issued by the respective Institutes.
9
3. Membership certificates of the qualified assistants issued by The Institute of Chartered
Accountants of India / The Institute of Cost Accountants of India.
4. Certificates/ Mark sheets issued by the respective Institutes in evidence of qualification
of semi- qualified assistants.
5. Copies of appointment letters for Statutory / Internal audit /Physical verification in NTPC
and its Subsidiaries/ JVs/ other PSUs/ Government(s)/ Central / State/ Scheduled Banks/
Private Sector in evidence of experience.
6. Firms with experience of internal / statutory / physical verification audit of power sector
entities in private sector have to submit a certificate to the effect that the average
annual turnover of the auditee for the relevant financial years is Rs 500 Crores or more
along with self attested copies of published accounts showing turnover for the relevant
years/ CIN and other relevant web links to verify the turnover or certificate giving year-
wise turnover details issued by the company.
7. Copy of PAN card.
8. Copy of Service Tax / GST Registration.
9. A copy of complete EOI document duly signed as a token of acceptance of all
terms and conditions and sealed.
10
Annexure - C
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 detailed hereunder:
Internal audit shall be conducted in 2(two) phases (Phase –I covering the period from April to
September and Phase –II covering the period from 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 would 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 with a team member having CISA/DISA and/or prior experience of auditing on the
SAP-ERP platform. .
2. AUDIT REPORT
The auditor should give a report for at the end of each Phase as per the requirement of
Annexure - E.
3. AUDIT FEE, MINIMUM MANDAYS PER PHASE OF AUDIT AND TRAVELLING
EXPENSES
Details of Audit fee for the year and Minimum number of Man-days required to be devoted
in each phase of audit for each unit are given in Annexure - F.
In addition one time to & fro journey fare by Air or Rail for each Phase of audit shall be paid
as detailed below:
Journey should be performed by the shortest route in the entitled class given below:
Entitled person Mode & class of Travel
One Partner: Economy class by Air /
AC Ist Class by Rail
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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 /GST, as applicable, will be paid as per the relevant Laws.
4. PAYMENT OF AUDIT FEES
Firms will be paid 50% of the Annual Audit fee after the completion of each Phase of
audit. 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 documents including Boarding passes in original in case of air travel required
to process such bills.
5. GENERAL TERMS AND CONDITIONS
i. Firms that secure 80 points and above as per criteria given in Annexure – A shall be
considered for empanelment. Firms will be given points and ranked in the
descending order. Top 150 firms securing 80 points and above and ties shall be
considered for empanelment.
ii. This EOI is only for the purpose of empanelment of Firms and does not
guarantee/assure allotment of Internal Audit/any other assignments.
iii. Only empanelled firms will be intimated about the decision on empanelment.
iv. The Company reserves its right to accept or reject any application(s) without
assigning any reasons thereof. The decision of the Company for empanelment of
Firms shall be final and binding upon the firms participating in the process of
empanelment.
v. The appointment of an Audit Firm will be made from the empanelled list of firms
keeping in perspective the proximity of its office to the NTPC unit, irrespective of
points obtained by the firm in the evaluation. All the empanelled firms shall be
treated at par irrespective of points obtained as per the criteria given in Annexure-A.
However any Audit Firm can be assigned any work at any unit at the discretion of
the Company.
vi. The Internal Auditor will ensure that the information obtained in respect of the
working/operation of the unit 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 NTPC at all the times. A certificate towards maintaining
confidentiality is to be provided by the Audit firm at the time of acceptance of Audit
assignment
vii. Assignment of work in subsequent years may be made subject to satisfactory
performance. The empanelled firms may be given assignments like Internal
Audit/physical verification of fixed assets / inventory etc.
12
viii. On assignment of work in subsequent years after the first year, NTPC may rotate the
Audit Firms from one unit to another within the Company.
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/legislature or under any other capacity, the appointment of such Firm as
Internal Auditor shall be withdrawn and a fresh appointment letter will be issued to
one of the empanelled firms other than this firm. It shall be the responsibility of the
firm to inform NTPC of any such appointment.
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, without
assigning any reason whatsoever.
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 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 audit in terms of the appointment letter.
d. If the Firm does not submit the Audit Report, complete in all respects in
terms of the appointment.
e. If the firm refuses to take up the assignment from the branch office as
mentioned in the letter of appointment for any reason whatsoever. No
request for change of branch office shall be entertained.
xii Firms which have conducted internal audit for three consecutive years in NTPC units/
Subsidiaries / JVs irrespective of units covered shall not be considered for internal
audit assignment during the empanelment period i.e. 2017-18 to 2019-20. However,
they may be considered for other assignment like physical verification etc.
13
Annexure – D
MAJOR AREAS TO BE COVERED DURING THE INTERNAL AUDIT OF
PROJECTS/STATIONS/ OFFICES
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
IX Invoicing and debtors for:
Sale of energy
Consultancy
X Custom Duty and Port charges etc.
Detailed guidelines for the above areas will be given at the time of appointment.
14
Annexure - E
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
the auditors desire to bring it 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, 2017-18) it may
be ensured that a compliance report on audit observations contained in Phase - II report of the
previous year (i.e. 2016-17) 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 have 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.
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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.
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 staff 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 unit 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 four 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 2 CDs written in MS Office and a soft copy is also to be
emailed to the following ids umatrivedi@ntpc.co.in & akacharya01@ntpc.co.in.
16
Annexure – F
List of Units, Location, Minimum Mandays and Audit Fees for Internal Audit
Sl.NO
Name of Unit
State
Partner Man -
days ( as Team
Leader) Per
Phase
Other Team
Member Man
–Days Per
Phase
Fees for
2017-18
1.
SIMHADRI
Andra Pradesh
12
58
365000
2.
SRHQ
Telangana
2
16
120000
3.
BONGAIGAON
Assam
8
37
220000
4.
BARH
Bihar
10
50
275000
5.
KAHALGAON
Bihar
12
58
365000
6.
ER-I
Bihar
2
16
120000
7.
SIPAT
Chhattisgarh
12
58
365000
8.
KORBA
Chhattisgarh
12
58
365000
9.
WR-II
Chhattisgarh
2
16
120000
10.
BADARPUR
Delhi
8
37
220000
11.
GANDHAR
Gujarat
8
37
220000
12.
KAWAS
Gujarat
8
37
220000
13.
FARIDABAD
Haryana
8
37
220000
14.
KOLDAM
Himachal Pradesh
8
37
220000
15.
PAKRI BARWADIH
Jharkhand
8
37
220000
16.
NORTH KARANPURA
Jharkhand
8
37
220000
17.
KUDGI
Karnataka
8
37
220000
18.
KAYAMKULAM
Kerala
8
37
220000
19.
VINDHYACHAL
Madhya Pradesh
13
62
390000
20.
GADARWARA
Madhya Pradesh
8
37
220000
21.
LARA
Chattisgarh
8
37
220000
22.
MOUDA
Maharashtra
10
50
275000
23.
SHOLAPUR
Maharashtra
8
37
220000
24.
WR-I
Maharashtra
2
16
120000
25.
TALCHER SUPER
Odisha
13
62
390000
26.
TALCHER THERMAL
Odisha
8
37
220000
27.
ER-II
Odisha
2
16
120000
28.
DARLIPALI
Odisha
8
37
220000
29.
ANTA
Rajasthan
8
37
220000
30.
T&CC, Chennai
Tamil Nadu
2
14
80000
31.
RAMAGUNDAM
Telangana
12
58
365000
32.
UNCHAHAR
Uttar Pradesh
10
50
275000
33.
TANDA
Uttar Pradesh
8
37
220000
34.
RIHAND
Uttar Pradesh
13
62
390000
35.
SINGURALI
Uttar Pradesh
12
58
365000
17
36.
DADRI
Uttar Pradesh
12
58
365000
37.
AURAIYA
Uttar Pradesh
8
37
220000
38.
NRHQ
Uttar Pradesh
2
16
120000
39.
DBF HQ
Uttar Pradesh
2
16
120000
40.
CONSULTANCY
Uttar Pradesh
2
16
120000
41.
CPT
Uttar Pradesh
2
16
120000
42.
TAPOVAN / LATA
Uttrakhand
8
37
220000
43.
Hydro HQ
Uttrakhand
2
16
120000
44.
FARAKKA
West Bengal
12
58
365000
45.
T&CC, Kolkata
West Bengal
2
14
80000
46.
RAMMAM
West Bengal
2
16
120000
47.
KHARGONE
Madhya Pradesh
2
16
120000