1
NTPC LIMITED
(A Govt. of India Enterprise)
NOTICE INVITING EXPRESSION OF INTEREST FOR EMPANELMENT OF FIRMS OF
CHARTERED / COST ACCOUNTANTS FOR CONDUCTING INTERNAL AUDIT IN NTPC
LIMITED AND ITS SUBSIDIARIES FOR THE FINANCIAL YEARS 2020-21, 2021-22 &
2022-23
Dated: 19.11.2019
NTPC Limited, a Government of India Undertaking, invites expression of interest (EOI) from
reputed Indian Chartered / Cost Accountants firms for empanelment as Internal Auditors for the
financial year 2020-21, 2021-22 and 2022-23.
The format of application along with the selection criteria, annexure specifying the extent of
coverage in areas, reporting requirements, terms of reference, list of units and locations etc.
are available at www.ntpctender.com. The same can be downloaded from website.
Firms may send their applications in the prescribed format under sealed cover to the General
Manager (Finance) Internal Audit, NTPC Limited, Room No. 30, EOC Annexe Building, Plot A-8A,
Sector 24, Noida – 201301 so as to reach latest by 20.12.2019 upto 05.00 p.m.
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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
6-7
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
E- mail
Supporting
document
Flag No.
Branch Office 1:
Address
Date of
Establishment
Contact Person/Mobile
number/other contact
Nos./Fax
E- mail
Supporting
document
Flag No.
Branch Office 2:
Address
Date of
Establishment
Contact
Person/Mobile
number/other
contact Nos./Fax
E- mail
Supporting
document
Flag No.
(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/
ISA
Date of
joining the
firm as
Partner
Supporting
document Flag
No.
1.
2.
…
6. Details of Qualified Assistants:
Sl.
No.
Name of the
Assistant
Membership
No.
Whether
ACA/ACMA/FCA/
FCMA/CISA/ISA
Date of
joining the
firm as
Qualified
Assistant
Supporting
document
Flag No.
1.
2.
…
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
Supporting document
Flag No.
1.
2.
….
8. Details of Experience of firm in Power Sector as Statutory / Internal Auditors
from FY 2009-10 onwards :
Sl.
No.
Name of the
Company/Unit
Year of
Audit
Type of Audit - whether
Statutory / Internal Audit
Supporting document
Flag No.
1.
2.
….
9. Details of Experience of firm in NTPC as Statutory Auditors from FY 2009-10
onwards :
Sl.
No.
Name of the
Company/Unit
Year of
Audit
Type of Audit - Statutory
Supporting document
Flag No.
1.
2.
3.
5
10. Details of Experience of firm in Physical Verification in Power Sector from FY
2009-10 onwards :
Sl.
No.
Name of the
Company/Unit
Year of Audit
Type of Physical
Verification-Fixed Assets
/ Inventory
Supporting
document Flag No.
1.
2.
….
11. Details of Experience of firm in sectors /industries other than power (excluding
financial sector) under Central / State Government / PSUs from FY 2009-10
onwards:
Sl.
No.
Name of the
Company/Unit
Year of Audit
Type of Audit – whether
Statutory / Internal Audit
Supporting
document Flag No.
1.
2.
….
12. Details of Experience in Financial sector under Central / State Government /
PSUs from FY 2009-10 onwards:
Sl.
No.
Name of the
Company/Unit
Year of Audit
Type of Audit – whether
Statutory / Internal Audit
Supporting
document Flag No.
1.
2.
….
13. Details of Valid Peer Review Certificate: NO. dated
(Enclose Supporting document )
14. Readiness for Internal Audit under Ind AS compliance guidelines Yes/No
15. PAN No. of the Firm:
16. 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 full financial
year of existence
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 / ISA /
Certification in Forensic Accounting and Fraud
Prevention from ICAI
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
08(eight)
7.
Experience of the Firm in Power sector as
Statutory/Internal Auditors (refer note Sl. IV below)
3 (three) per year of
Audit
15 (fifteen)
8.
Experience of the Firm as Statutory Auditor of NTPC
1 (one) per year of Audit
4 (four)
9.
Experience of the firm in Physical verification in Power
Sector (refer note Sl. IV below)
1 (one) per year of Audit
6 (six)
10.
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
16 (sixteen)
11.
Experience of the Firm in Financial sector under
Central/State Government/PSUs as Statutory/Internal
Auditors
1 (one) per year of Audit
6 (six)
12.
Valid Peer review certificate issued by ICAI
3 (three)
T o t a l p o i n t s
100 (One
hundred)
7
Note:
I. Experience from the financial year 2009-10 onwards only shall be considered while
carrying out evaluation for criteria at Sl. No. 7 to 11 above.
II. Sl. No. 7 to 11 - 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 and 9 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 and 9 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 2016-17 would only
be considered.
V. Fraction of the year to be ignored for calculating no. of years at SL No. 1, and 7 to 11.
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Annexure - B
To Do List
(A) Instructions to Audit Firms:
1. Format of Application must be completely filled in. Incomplete applications will be out
rightly 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. All EOIs will be evaluated on the basis of the documents furnished along with applications
only.
4. 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.
5. All the documents submitted should be signed by a Partner with his / her name and under
the seal of the firm.
6. Applications must be submitted under sealed cover super scribing the EOI Notice No. __ &
date and the words “Application for Empanelment of Internal Auditors for
Financial years 2020-21, 2021-22 and 2022-23”. The name and address of the firm
must also be indicated on the body of the envelope.
7. Application must be addressed to General Manager (Finance) - Internal Audit, NTPC
Limited, Room No. 30, EOC Annexe Building, Plot A-8A, Sector 24, Noida – 201301. It may
be delivered in person also at reception of NTPC Limited, EOC Building , Plot A-8A, Sector
24, Noida – 201301. NTPC does not take any responsibility for the loss of application in-
transit. Applications sent through 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.
(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. Copy of MEF (Multipurpose Empanelment Form) last submitted to ICAI.
3. Certificates of ISA/ CISA/ Forensic Accounting and Fraud Prevention from ICAI if any,
issued by the respective Institutes.
4. Membership certificates of the qualified assistants issued by The Institute of Chartered
Accountants of India / The Institute of Cost Accountants of India.
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5. Certificates/ Mark sheets issued by the respective Institutes in evidence of qualification
of semi- qualified assistants.
6. 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.
7. Copies of appointment letters for Statutory / Internal audit /Physical verification in NTPC
and its Subsidiaries/ JVs/ other PSUs/ Government(s)/ Central / State/ Scheduled Banks
in evidence of experience.
8. 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.
9. Peer review certificate issued by ICAI
10. Copy of PAN card.
11. Copy of GST Registration.
12. A copy of complete EOI document duly signed as a token of acceptance of all
terms and conditions and sealed.
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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 Shared Service Centre (SSC)/ 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/ISA 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
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.
GST, as applicable, will be paid as per the relevant Laws.
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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 the submission of report for each phase. The
bill should be submitted to respective SSCs / units along with all supporting documents
including Boarding passes in original in case of air travel.
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 120 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. 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.
iv. 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 SSC / 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.
v. 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
vi. 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.
vii. 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.
viii. 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.
ix. 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.
x. The Audit Firm will be debarred from getting, in future, Internal Audit assignments in
NTPC and its subsidiaries / JVs in the following cases :
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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 two or more years in current
empanelment (2017-18 to 2019-20) at NTPC units/ Subsidiaries / JVs irrespective of
units covered shall not be considered for internal audit assignment during the
proposed empanelment period. 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 / Areas
1
Important Observations
2
Works & Procurement including O&M contracts (Pre-award and Execution)
3
Operations
4
Accounts including establishment accounts
5
Stores
6
Human Resources Department (HR Establishment)
7
Township, Guest House and Hospital
8
Auto Base and Construction Equipment
9
Coal Mining
10
Loan Accounts (Term loan & Working Capital Loan)
11
Invoicing and debtors for Sale of energy
12
Custom Duty and Port charges etc.
13
Invoicing and debtors for Consultancy
14
Investment and Bonds
15
Report on Testing and effectiveness of Internal control (ICF)
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 Eighteen paras, namely:
PARA- 1 IMPORTANT OBSERVATIONS, OBJECTIONS AND RESERVATIONS:
This para 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.
PARA – 2 to 17 DETAILED REPORT:
These paras 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 Para 1 of the report, should also be invariably detailed in
these paras.
PARA – 18 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 in this para.
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.
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(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 Heads of SSC/
units 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 Unit-wise reports are to be submitted in single hard copy for each phase of audit to
the Corporate Internal Audit Department of NTPC at NOIDA. Soft Copy of Internal
Audit Report have also to be submitted in MS Excel through email to the following ids
ragoyal@ntpc.co.in and pushpendratyagi@ntpc.co.in
(e) The concept of paperless office (PRADIP), has been implemented in NTPC hence
contents of Internal Audit Report have also to be reported in Financial Audit – Internal
Audit module of PRADIP platform of NTPC. A familiarisation training programme will be
organised by NTPC for PRADIP system before start of the audit.
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Annexure – F
List of SSCs, Units, Minimum Man-days and Audit Fees for Internal Audit
Sl.NO
Name of Unit
Total
Man-days
Partner
Man-days
Proposed
Fees for
2020-21
SSC- DBF & Hydro
1
Lata & Tapovan Vishnugad HPP
41
8
270000
2
Koldam HPP
41
8
270000
3
Hydro HQ
7
2
45000
4
Dadri Badarpur Faridabad HQ
7
2
45000
5
Faridabad GPP
35
7
230000
6
Rammam HPP
9
2
60000
7
Dadri including GAS
63
12
415000
SSC-Auraiya
8
Auraiya GPP
35
7
230000
9
Feroz Gandhi Unchahar TPS
54
10
355000
10
Tanda TPS
41
8
270000
11
Bilhaur Solar
8
2
55000
12
NR HQ
7
2
45000
SSC-VSR
13
Vindhyachal STPP
68
13
450000
14
Rihand STPP
63
12
415000
15
Singrauli STPS
54
10
355000
SSC-Kawas
16
Kawas GPP
35
7
230000
17
Jhanor Gandhar GPP
35
7
230000
18
Solapur STPP
54
10
355000
19
Anta GPS
35
7
230000
20
Mouda STPP
63
12
415000
21
WR-I HQ
7
2
45000
SSC-Sipat
22
Sipat STPP
63
12
415000
23
WR-II HQ
7
2
45000
24
Lara STPP
54
10
355000
25
Gadarwara STPP
54
10
355000
26
Khargone STPP
41
8
270000
27
Korba STPS
63
12
415000
SSC-Barh
28
T &CC, Kolkata
5
2
35000
29
ER-I HQ
7
2
45000
30
Farakka STPS
63
12
415000
17
31
KahalgaonSTPS
63
12
415000
32
North Karanpura STPP
41
8
270000
33
Barh STPP
63
12
415000
34
Barauni
8
2
55000
SSC-Talcher
35
Bongaigaon TPP
41
8
270000
36
ER-II HQ
7
2
45000
37
Darlipali STPP
41
8
270000
38
Talcher Thermal
41
8
270000
39
Talcher Super Thermal
63
12
415000
SSC-Simhadri
40
Ramagundam STPS
63
12
415000
41
T &CC, Chennai
5
2
35000
42
Rajiv Gandhi CCPP, Kayamkulam
35
7
230000
43
SR HQ
7
2
45000
44
Simhadri
63
12
415000
45
Kudgi STPP
63
12
415000
SSC-Coal Mining Plant-Ranchi
Units
Total
Mandays
Partner
Mandays
46
Pakri Barwadih CMP
41
8
270000
47
Talaipalli
17
2
115000
48
Dulanga
17
2
115000
Others
Units
Total
Mandays
Partner
Mandays
49
Badarpur TPS
20
4
130000
50
Centralised Billing
41
8
270000
51
Corporate Centre- SCOPE/ EOC
70
13
460000
52
Centralised Payroll Team
20
4
130000
53
Human Resource Unified Services
20
4
130000
The concept of Shared Service Centre (SSC) has been implemented in NTPC wherein the
function of finances & Accounts are Centralised at one unit for each Region. Hence, the
audit of two or more units under SSCs /HQs may be allotted to one firm.