Sub: Request For Proposal (RFP) from Chartered Accountants Firms for providing financial services to IIT Indore

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1 To, Sub: Request For Proposal (RFP) from Chartered Accountants Firms for providing financial services to IIT Indore Dear Sir, Indian Institute of Technology Indore invites RFP from the Practicing Chartered Accountant Firms, who are willing to take up the following assignments at IIT Indore: a) Preparation of Annual Financial Statements b) Conduction of Internal Audit in compliance with the provisions applicable to Autonomous bodies under Government of India and Guidelines issued by MHRD and as amended from time to time. c) Tax related and other services. Brief scope of the work/services is available in the Chapter III. Last date of submission of offer: November 26, 2018 Sealed Proposal super-scribed as OFFER FOR APPOINMENT OF CONSULTANTS FOR PROVIDING FINANCIAL SERVICES to be submitted to Registrar, IIT Indore on following address on or before the last date of submission of offer. Bidders may send the proposal by hand/ Speed post /Courier services (DTDC only delivers at our present campus) so as to reach IIT Indore before the deadline. Yours sincerely, Registrar, IIT Indore Khandwa Road, Simrol Indore

2 INDIAN INSTITUTE OF TECHNOLOGY INDORE (IIT INDORE) REQUEST FOR PROPOSAL FOR PROVIDING FINANCIAL SERVICES INDIAN INSTITUTE OF TECHNOLOGY INDORE (Under the Ministry of HRD, Govt. of India) Indian Institute of Technology Indore Khandwa Road, Simrol Indore India 2

3 INDIAN INSTITUTE OF TECHNOLOGY INDORE C O N T E N T S Chapter Description Page No. I Detailed Notice 01 II Guidelines for Submission of proposal 02 III Scope of work 05 IV Eligibility of Firms for Submission of bids 07 V Process of Submission of Bids 08 VI Bid Part I: Financial Part- II : other details & Part - III: Declaration to be submitted by Practicing Chartered Accountant Firm 09 3

4 Chapter I Detailed Notice Applications are invited for providing financial services to IIT Indore by eligible Practicing Chartered Accountant Firms in India. The Scope of the Audit shall be as per Chapter III to this document and shall be as per guidelines issued by MHRD and as applicable from time to time. The applicants are requested to confirm their eligibility as stated in Chapter IV to this Letter prior to submission of bids. Any bids from ineligible firms shall immediately stand cancelled. The terms and conditions for the Practicing Chartered Accountant Firms, the selection procedure are stated in this Letter. The process for submission of the bids is stated in Chapter V to this Letter. It shall be the responsibility of the Practicing Chartered Accountant Firms to ascertain their eligibility, completeness and accuracy of their bid documents. No modifications, revisions, discussions or any form of communications in this respect will be entertained, in any manner. It is the Bidders responsibility, to ensure timely submission of the Bid within the due date. 1

5 Guidelines for Submission of Proposal: Chapter -II 1. Place and methodology of providing Services: The services shall be provided at the IIT Indore. The scope shall mention the methodology, staff deployment, and the areas where there will be 100% verification in the case of Internal Audit. 2. Payment: 2.1 The payment shall be released on satisfactory completion of the assignment and on submission of bill. 2.2 No advance shall be paid for the assignment. 2.3 No expense towards travel/ Daily allowance/boarding & lodging/ Out of pocket shall be paid to the firms for carrying out any of the assignment. Rates must be quoted inclusive of all expenses. However, GST is to be specified extra and the same shall be paid as applicable from time to time in addition to basic fees. 2.4 Payment to the auditors shall be subject to deduction of tax at source at appropriate rates then applicable. 2.5 The Audit fees will be fixed for the initial period of appointment. 3. Periodicity of Audit: The appointment of the selected Internal Audit firm shall be initially for a period of one year from the date of issue of service order. The appointment may be extended depending on the decision of the IIT Indore. The Competent Authority of IIT Indore may alter or revise the period of Audit at its discretion. 4. Audit Report Submission: The Audit Report should be submitted on half yearly basis to the Competent Authority. 5. Dispute: In case of any dispute arising during the execution of the contract, an amicable solution may be arrived at with discussion and reconciliation. However, in case of the dispute remaining unresolved, decision of the IIT Indore shall be final and binding on both parties of the contract. 6. Terms and Conditions General i IIT Indore reserves the right to cancel the request partly or fully at its sole discretion at any stage without assigning any reason to any of the participating bidders. 2

6 ii IIT Indore reserves the right to cancel or reject any or all the bids without assigning any reasons thereon. iii IIT Indore also reserves the right to modify the terms and conditions, and also to cancel the bid process at any stage without assigning any reasons. vi. The firms will be evaluated on the basis of assessment of their eligibility, experience and the Audit Plan submitted along with the Technical Bid. v. The Financial Bids, of only those Bidders who qualify in the Technical Evaluation, will be opened. vi IIT Indore shall not undertake any correspondence with the bidders in any way, except to issue the RFP and modification to the RFP and clarification, if any. While Bidders are free to submit their queries, IIT Indore will respond in the form of modifications to the RFP, if any. vii The offer shall remain valid for a period of 180 days from the date of submission of the same. viii. IIT Indore takes no responsibility for misplacement of bids by the Company, if the same are not enclosed properly or not delivered to the correct address. ix. The bidders shall be responsible for all the costs associated with preparation, submission and delivery of bids, including any clarifications thereon. x. All pages of the bid document must be sealed and signed by the Partner or an Authorized Signatory of the Practicing Chartered Accountant Firm. xi. Conditional Bids will be disqualified. xii. Any financial quotation received in response to this RFP which is linked to assets, turnover or revenue of IIT Indore would disqualify the bid. xiii. The bidders should note that they shall abide (in true intent and spirit) by the terms and conditions of this letter. If the responses contain any conditions, put in by the bidders, such responses will be disqualified and will not be considered for the selection process. xiv IIT Indore reserves the right to amend/modify the attachments to this RFP partly/fully at its sole discretions at any stage without assigning any reason to any participating bidders. 3

7 xv Practicing Chartered Accountant Firm shall nominate a Nodal Officer of the rank of Partner / Principal / Director, immediately on the award of the work / contract for timely and smooth interaction. xvi The Practicing Chartered Accountant Firm shall deploy a full-time staff / article towards assignment of Internal Audit in the IIT Indore premises for fulfilling the said requirements. The person engaged for the Internal Audit in IIT Indore shall have minimum experience of 2 years. xvii The Bids received after the specified date/ time, incomplete / unsigned /in open envelope or by fax, etc. will not be considered and be rejected. xviii IITI reserves the right to cancel/ or extend the date of receipt / opening of Bid or withdraw the RFP notice without assigning any reasons. Whatsoever in such case the bidders shall not be entitled to any form of compensation from the Institute. 4

8 Chapter - III Scope of Work/Services: 1. The Internal Audit shall be conducted as per the provisions applicable to Autonomous bodies under Government of India and Guidelines issued by MHRD as amended and applicable from time to time. 2. The Internal Auditor shall generally be responsible for compliance of the Internal Audit Standards issued by the Institute of Chartered Accountants of India 3. The scope of Internal Audit will generally cover the following basic areas, so that during the course of Statutory Audit majority of the areas/items are covered:- General Area Finance Accounts & Contract & Work order Management and the Estates Management Broad Audit Coverage Reliability of the accounting record in conformity with the Accounting Standards and all statutory requirements. Checking and suggesting issues in respect of all Taxes and other statutory matters. Adequacy of internal control and internal check about system of payment made to different agencies Specific action to be taken on unresolved items, if any. To submit Audit Reports by the end of the month of the respective half year and make power point presentation before BOG. To suggest action plan for rectification of internal audit observations and to study and review the existing MIS and suggest any improvement. Cash, bank & Fund management, Loans & advances. Scrutiny of all ledgers. Tax related compliances. Technical updates and advice on various taxation law, finance, audit matters, etc. to be provided. Method of charging depreciation. To audit and certify the annual accounts at the end of the financial year to be put up to the Board of Governors. Compliance with (i) Management directives e.g. delegation of power and other circulars & (ii) Statutory laws and rules. Process of Awarding of the contract Adequacy of contract terms and conditions for safeguarding Institute s interest. Audit of Capital Expenditure/bills Review of process of recovery/waiver off of L.D charges Scrutiny of Material consumption registers. Scrutiny of Running bills of contractor. Abstract of Measurement books. 5

9 Procurement Management Soundness of procurement system and procedures. Adequacy of offers/quotation/bid system. Compliance with: Provision of delegation of power matrix and other circulars issued Purchase order terms and condition. etc. Review of process of selection of procurement mode viz open tender, limited tender or single tender etc. Scrutiny and Audit of major purchase files on test basis Review of Physical Verification report of Assets & Stores. Audit of bill files against PO PART B Preparation of Annual Financial Statements PART C Tax related work: a. Filing of TDS returns: 24Q - Salary 26Q - Non Salary 27Q - Foreign Payment Revision of returns, if any (due to IITI) Income-tax annual return, including TDS reconciliation and revision of return if required. b. GST: All applicable GST returns to fulfill statutory requirements e.g. monthly, quarterly, yearly. Advise on GST amendments c. Calculation of tax liability of all employees (approx. 250 ): Obtaining tax investment declaration from each employee at the beginning of the year or at the time of recruitment. Calculation of Computation of income to determine monthly TDS. Verification of investment proofs. Recalculation of tax liability based on investment proofs received. Issuing Form 16 after end of the year. Addressing queries of employees regarding calculation of TDS. Providing TDS amount every month. Updating institute time to time about recent changes in tax laws applicable to institute and their employees related to TDS on salaries. Any other basic advice related to accounting, taxation matters etc. shall not be charged separately. However, amount to be quoted for significant advisory function based on each case. 6

10 Chapter IV Eligibility of the Firms for submission of bids A. Minimum Eligibility Requirements: 1. The Practicing Chartered Accountant Firm should be engaged in providing Audit and Consulting services. 2. The firm should have a minimum of 05 years experience in the audit and tax related consulting fields. 3. The firm should have experience of handling audit and assurance related matters for at least one Higher Education Institute for minimum three years. 4. The firm should have average annual gross receipt of more than Rs. 20 Lacs for each of the last 3 completed financial years and prior to the date of submission of the bid. 5. The firm should have at least two full time Fellow Chartered Accountants as partners of the firm. 6. Documentary evidences are to be enclosed w.r.t. above. B. Disqualifications: Bids and bidders which fall under the following categories will not be qualified: 1. Incomplete bids and bids not in attached formats. 2. Bids received after due date and time. 3. Bidder makes any misrepresentation i.e. there are any material wrong information or makes a wrong statement or misrepresents fact or makes a misleading statement in its bid in any manner whatsoever in order to create circumstances for IITI to accept the bid. 4. Any bidder or firm who solicits or reaches out to I I T I or any representatives or employees for creating circumstances for IITI to accept the bid. 5. If the financial offer is enclosed in the technical bid or any indication of the financial bid in the technical proposal. 6. Any conditional quotation linked with to assets, turnover or revenue of I I T I would disqualify the bidder. 7

11 Chapter - V Process of submission of bids: Main envelope must contain two separate envelopes. One for Financial bid as per form PART I and Second for other eligibility documents as per PART II & III. Institute will open envelope containing eligibility documents first. Financial bid will be opened only for the eligible firms only. The bid must be accompanied by all the relevant documents mentioned therein. IITI shall not be responsible for any missing documents or information. Bid must be under the letter head of the Company and duly signed and stamped by authorized signatory. Non submission of eligibility documents /improper document may entitle disqualification. DISCLAIMER: This document is not an agreement or offer by Indian Institute of Technology Indore (hereinafter referred to as IIT Indore) to the prospective bidders or any other party. The purpose of this document is to provide interested parties with information to assist the formulation of their bid and proposal. This document and the information contained therein are to be used only by the person to whom it is issued. The terms and conditions and details stated in this document are subject to change by the Management at any time and in any manner, as it may deem fit, without any further or prior intimation to the applicants or parties concerned in any manner. This document does not create any obligation on IIT Indore in respect of this appointment or any persons who reply to this advertisement in any form or manner. While this document has been prepared in good faith, neither IIT Indore nor its employees or any person associated makes any representation or warranty express or implied as to the accuracy, reliability or completeness of the information contained therein. Further, any change in the nature of requirements, criteria or timeline shall be applicable to this document, without any further intimation. REGISTRAR (IIT INDORE) 8

12 Chapter - VI Sr. No. PART I- FINANCIAL BID: SCHEDULE OF RATES Particulars Frequ ency PART A 1 Internal Audit (At least twice in a year) 1 PART B 1 Preparation of Annual Financial Statements 2 PART - C TDS returns: 24Q - Salary Q - Non Salary 4 27Q - Foreign Payment 4 Revision of returns, if any (due to IITI) 2 Income-tax return (including TDS reconciliation and revision of 1 return, if required) 3 GST: All applicable GST returns to fulfill statutory requirements e.g. monthly, quarterly, yearly including guidance/ advise on GST amendments Calculation of tax liability of all employees (approx. 250 employees): - Obtaining tax investment declaration from each employee at the beginning of the year or at the time of recruitment. - Calculation of Computation of income to determine monthly TDS. - Verification of investment proofs. 4 - Recalculation of tax liability based on investment proofs received. - Issuing Form 16 after end of the year. - Addressing queries of employees regarding calculation of TDS -Providing TDS amount every month - Updating institute time to time about recent changes in tax laws applicable to institute and their employees related to TDS on salaries. Amount per transactio n Contd.. Tot al 9

13 PART - D Any other basic advice related to accounting, taxation matters etc. shall not be charged 1 separately. However, plz quote for significant advisory function based on each case. GST not to be included in above rates, to be specified as extra 1. Institute may take decision to have services based on clubbing of services under Part A, B & C separately based on quoted rates. 2. No expense towards travel/ Daily allowance/boarding & lodging/ Out of pocket shall be paid to the firms for carrying out any of the assignment. Rates must be quoted inclusive of all expenses. However, GST is to be specified extra and the same shall be paid as applicable from time to time in addition to basic fees. Signature: Name and Designation of the Authorised Signatory: Stamp of the Firm: Date: Place: 10

14 PART - II 1 Name of the Practicing Chartered Accountant Firm: 2 Type of Entity (Partnership / LLP/ Company): 3 Whether the Partnership Firm / LLP / Company is a Practicing Chartered Accountant Firm or otherwise, Please Specify. 4 Name of the Authorized Signatory/ Lead Partner: 5 Date of Commencement of Firm: 6 Registration Number of the firm with Institute of Chartered Accountants of India (Please attach documentary evidence) 7 Details of Office(s): Address: Telephone No: Website: (Please give all addresses, if more than one) 8 PAN Number 9 GSTIN Details of experience including for Higher Educational Institution with copy of appointment letter of last 3 Years. (Please attach documentary evidence) Details of other Companies for which Internal/ Statutory/ Concurrent / Tax Audit Assignment has been undertaken (Government) with Copy of appointment letter of last 5 Years. (Please attach documentary evidence) Average Annual Gross Receipts for last 3 Financial Years along with documentary evidence (upto Financial year if available) Brief Profile of Partners (Name, Qualification, Institute of Chartered Accountants of India Membership no. and Date of Certificate of Practice, Mobile No. with documentary evidence 11

15 Manpower (Nos) A) Qualified Professionals : i) Partners ii) 14 Others B) Articles : 15 Detailed Audit Plan devised by the Internal Auditor (Attach document providing the details of the proposed audit plan) ` DECLARATION All information provided by me/us herein above is correct, true and free from any misstatement or misinformation. I/We have read all the terms and conditions of this bid and the instructions and accept them in total on all fronts. Signature: Name and Designation of the Authorised Signatory: Stamp of the Firm: Date: Place: 12

16 Part III Declaration 1. All the information provided by me/us herein above is correct. 2. I/We have no objection if enquiries are made about the work listed by me/us in accompanying sheets/annexure. 3. I/We have read all the terms and conditions of bid and the instructions and these are acceptable to me/us. Signature: Name and Designation of the Authorised Signatory: Stamp of the Firm: Date: Place: 13