V.O.CHIDAMBARANAR PORT TRUST

Transcription

1 V.O.CHIDAMBARANAR PORT TRUST GRAMS : PORT TRUST PHONE : (50 Lines) FAX : info@vocport.gov.in CERTIFIED UNDER ISO 9002 ISO14001:200 Finance Department Administrative Office, TUTICORIN Web: Fax: Tender No. : No.A-22/1/2014-IAU Name of work : Internal Audit of Financial Transactions of V.O.C.Port Trust, Tuticorin by outsourcing the services for a period of two years through firms of CAG empanelled Chartered Accountants having Established Office at Tuticorin in their own name only. Probable amount of contract : Rs. 26,60,000/- (for a period of two years). Cost of Tender Form : Rs.525/- (inclusive of VAT). Date of commencement of sale of tender : to Date & Time of receipt of tender : Upto hours. Period of completion of work : Two years. Validity of Tender : 90 days from the date of opening of Price bid (cover-ii). Name of office issuing and receiving Tender : Financial Adviser & Chief Accounts Officer, Finance Department, V.O.Chidambaranar Port Trust Tuticorin For further details visit the Port website www,vocpt.gov.in before applying for tender schedule.

2 V.O.CHIDHAMBARNAR PORT TRUST, TUTICORIN FINANCE DEPARTMENT TENDER DOCUMENT FOR THE WORK: INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF V.O.CHIDAMBARANAR PORT TRUST, TUTICORIN. 1. General V. O. Chidambaranar Port Trust, Tuticorin is a body corporate formed under the Major Port Trusts Act, The accounts of the Port are also subject to statutory audit by the representatives of the Comptroller & Audit General through the Principal Director, Commercial Audit, Chennai. The Port is a local authority and Income Tax, Act 1961 is applicable to this Port since and is subject to tax audit by Chartered Accountants also. It is proposed to outsource the internal audit work to a registered firm of Chartered Accountant to get the work done in a professional manner. Apart from accounting standards applicable, the port is following works account and material account as per CPWD procedures in the matter of execution of works carried out through contractors and our own operations under PPP model with Revenue sharing. The information about the Port is available in the website of the Port at gov. 1.Requirement & Eligibility The work is quite huge in terms of volume of transactions. The working offices and work sites are also spread over much larger area. In view of the above, the work is proposed to be given to a reputed firm having experience in similar works in bigger organization like the Port. The firm should also have at least 4 partners with professional qualification in the field of work. This is considered necessary to ensure the continuity of operations and for getting better inputs out of the proposed Audit.The firm should have completed Internal Audit /Audit of Accounts of companies as indicated below: First and foremost the Auditor s firm should be approved by the C.A.G/R.B.I as eligible for internal Audit work. i. Experience in Internal Audit- in an organization having turnover of not less than Rs.50 crores.

3 Accountant. ii. The firm should have at least one system Audit qualified Chartered Accountant /Cost iii. The firm should provide manpower as detailed in price bid. 2.Scope of work: The scope of work covered in this is given in detail in Annexure General instructions for Tendering: (1) Tenders are invited in two covers. These covers should contain the following: In cover 1: Cost of Tender and information for Technical evaluation. The cost of tender form in the form of a Demand Draft drawn in favour of FA&CAO, V.O.Chidambaranar Port Trust, and payable at Tuticorin.. The information about themselves in the prescribed form Annexure-II. In Cover II: Price bid.. The price bid for undertaking this work in the prescribed form Annexure III. Both these two covers will be sealed independently and enveloped in the main cover. The main cover will also be sealed and submitted. All covers shall be superscribed to identify the covers viz. Cover-I, Cover-II, and Main Cover indicating the name of work as INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF V.O.CHIDAMBARANAR PORT TRUST, Tuticorin. (2) Price quoted shall be valid for a period of 60 days from the date of submission of Cover II. (3) All pages of the tender document should be signed by a person authorized for the purpose by the firm submitting the tender. (4) The Port reserves the right to ask for clarifications from any tenderer on the details given in the tender. (5) Tender price will not be allowed to be changed after opening the Main Cover. (6) The tender documents downloaded from the Port s web site should be used as such without making any alterations. (7) Any alterations /additions made shall not be considered and shall have no effect. (8) The tenderer shall not specify any additional conditions. Any additional condition shall be ignored and shall have no legal sanctity. (9) The Port reserves the right to modify the whole or any part of the tender by issuing an amendment in writing and this will be sent to all bidders by registered post / uploaded in

4 website also. Such amendments will be numbered and the same shall form part of this Tender Document. (10) The tender should be sent to the Financial Adviser & Chief Accounts Officer, so as to reach him before the due date/time. The address is given below: The Financial Adviser & Chief Accounts Officer, V.O.Chidambaranar Port Trust, Administrative Office, Tuticorin Telephone No: (0461) Fax N0(0461) Website: gov.in 4.Tender Prices: (1) Tenders will be received only upto the date and time specified in the Notice inviting tender. Tenders received after that date and time will not be considered and will be treated as rejected. (2)All tenders received by the due date/time will be opened at the date/time prescribed for opening. i.e. the main cover containing Cover-I and Cover II will be first opened. Thereafter the Cover-I containing the technical bid or the information about the renderer will be opened. Cover II will be kept unopened. (3)Tenders received without the cost of tender document (if not already paid) will be rejected. (4)Tender for which the cost are received will be considered for further process to analyze the capability of the firm to take up the work. Those found to satisfy the pre-determined criteria will be treated as qualified. The qualified tenderers will be informed of their selection by Registered Post. They will be allowed for witnessing the opening of Cover-II which will be sufficiently informed in advance, tenderers who wish to attend may attend at their own cost. (5)On the appointed day Cover-II of the qualified tenders will be opened. (6) The work will be awarded to the lowest offer. In case of a tie, the tenderers who have quoted identical rates will be asked to quote again to decide the lowest among them. (7)Upon final selection the successful tenderer shall be issued with a written work order to commence the work. 5.Issue of work order and commencement of work: The firm to whom the work is awarded shall acknowledge the receipt of work order, pay the performance security and sign a formal agreement as per Annexure -V within 15 days from the date of work order. Upon signing the contract agreement, the contractor shall commence the work within a week. If the work is not commenced within the stipulated date, the Port shall proceed to cancel the work order. 6. Performance Security:

5 The successful tenderer to whom the work order has been issued with shall pay a performance security equal to 5% of the tendered value to the Port before signing the contract agreement and commencing the work. The deposit will be with the Port till the work is completed and will be returned immediately thereafter. The deposit will not carry any interest. If the work is abandoned, or if the contract is terminated by the Port or serious violation of the contractual terms, the deposit will be forfeited. The tender has the option to furnish the performance guarantee in the form of a Bank Guarantee from a Nationalized/ Scheduled bank payable at Tuticorin. The form of Bank Guarantee is enclosed as Annexure VI. 7. Performance of work: (1)The work shall be carried out as set out in the scope of work covered in the contract. The Chartered Accountant firm on award of the work shall engage a minimum number of three personnel as specified below:- 1. Qualified chartered accountant /cost accountant: 1 No (2 visits per week- each for half day) 2. Intermediate Chartered Accountants/Cost Accountants (qualified person) : 1 No 3. Assistant experienced in doing auditing with minimum qualification as B.Com: 3 No 4. Class IV to co-ordinate the file movements : 1 No Sl.No.2, 3, 4 daily attendance excluding Sundays and Public holidays is essential. (2) All requirement of stationery shall be provided by the contractor himself and they should bear the firm s name for identification of reports/documents generated by them. (3) The place of work shall be the Administrative Office of V.O.Chidambaranar Port Trust. However, in case of necessity they may visit the work site/divisional offices with prior intimation/appointment of the officer in charge. (4)The normal work timings will be from am to 5.00 pm. (5)Access to computer terminals connected to the Integrated Computer System of the Port will be provided. (6) Place of work and furniture will be provided by the Port free of cost at the Administrative Offices. (7)The tenderer and his employees shall maintain strict confidence of all information received by them in the course of performance of their duties. Any violation in this regard will be viewed seriously and will be liable for appropriate action. They shall not take any document/materials outside the Port premises without the written permission of the designated officers of the Port. (8) The work shall be carried out as per the plan already approved. The milestone shall be framed as a calendar month. On completion of audit of each month a detailed report in the prescribed form is to be submitted indicating the volume of work done in the form of statistics as well as in the form of running

6 note highlighting the observations, proposed rectification etc. The Internal Audit Report for a particular month shall be submitted within 2 ½ months succeeding the reported month e.g. Report for January, 2015 to be submitted on before 15 th April, Payment for work done: Payment for the work done will be made on a monthly basis within 5 days on acceptance of the monthly audit report by the Financial Adviser & Chief Accounts Officer. The monthly bill shall be claimed enclosing the report of work done for that month. 9. Taxes: Income tax and all statutory taxes, surcharges, etc. shall be deducted from the payments and TDS will be made by the Port at the time of each payment. 10. Service Tax: Service tax payable by the Port, if applicable will be paid as per the actual on production of documentary evidence (i.e) registration no and it will claimed in a Cenvatable Invoice.. 11.Security Deposit: 10% of each bill shall be made towards Security Deposit subject to a maximum of 5% of the contract value will be made, the security deposit shall be held by the Port shall be refunded after 6 months of completion & on receipt of no due certificate from the contractor. This deposit will not carry any interest. If the work is abandoned, or if the contract is terminated by the Port for serious violation of the contractual terms, the deposit stands forfeited. 12.Termination of contract: The Port reserves the right to terminate the contract for any violation of the contractual terms and non- performance of work to be carried out under the contract. The Port shall however proceed to terminate the contract only after giving an opportunity to the contractor in the form of a notice to be given in writing to explain the reasons for the violations and slippages. If the contractor fails to rectify the violation / slippages, the Port may proceed further to terminate the contract. All deposits relating to this contract will be forfeited. Similarly the contractor may also terminate the contract by giving one month notice in writing explaining the reasons for seeking termination. If the reasons for termination is due to his inability to continue the work, all deposits relating to this contract will be forfeited. If the contract is terminated by the Port for its own administrative reasons, the deposits shall be refunded to the contractor.

7 13. Penalty for delays : Following schedule should be adhered:-i i)delayed submission of Report Penalty of 1% of monthly fee per week will be levied subject to a maximum of 10% of total value of contract. ii) Non attendance of staff:- In addition to non payment for non attendance, 25% of the per day/ visit charges indicated in the Price Schedule at Annexure III will be deducted. 14. Period of contract: The term of the firm of Chartered Accountants will be initially for a period of two years and the same may be extended for a further period of one year on mutual consent. 15.Conclusion: The Port reserves the right to reject the tenders and without any liability for administrative reasons. 16. Note: The last date & time for receipt of tender: at hours Date & time of opening the tender : at hours ANNEXURE 1 1.Scope of Work

8 (1) The Internal Audit is to be conducted with a view to see whether: (a) All the transactions involving financial implications are properly accounted for; (b) The initial accounts records are maintained correctly and accurately; (c) There are no delays and /or irregularities in maintaining the Accounts and reports, statutory regulation ; (d) The provisions of the accounting standards, accounting procedure, rules and regulations, orders and procedure in force and instructions issued by the Chairman /F.A.&CAO from time to time are followed; and (e) Reports submitted are supported by basic records. (2) It is also within the purview of audit to bring to light any other points of interest which may lead to reduction in costs and increase in efficiency. It may even suggest modifications in the existing procedure for achieving the above objectives. (3)The role of internal audit should be such that it will be envisaged as a service input in an organization and should be a valuable focal point for management planning and control. (4) For this purpose, the approach should be on a selective basis rather than a searching examination of debits and credits. (5)The coverage will be relating to Port and all transactions of Cargo handling Division. 2. Periodicity and Methodology The period of this contract is to cover all transactions relating to two Calender years starting from the year May, However, the continuance for the 2 nd year, will be given in writing by the Port after completion of the assignment for the previous year. The audit will be conducted on a concurrent basis throughout the year. Internal Audit will cover all the departments at least once in a year and a programme for the same is to be drawn up and got approved by the FA & CAO once in a year. 3.INTERNAL AUDIT REPORT: (1 ) The report shall be submitted in two parts. The first part will contain a summary of significant irregularities and second part will contain all the other irregularities, deficiencies etc. noticed requiring rectification recoveries or adjustments. Annexure A to the Report as enclosed should be attached to each report. (2)The report should be submitted with 1 CD and 2 hard copies. (3) The report should not be a repetition of C&AG S audit remarks or it should not be just generated report available in the System either fully or partially. Report should concentrate/give

9 more attention to improvement in System Controls / Office procedures etc. Qualitative information to management on cost /benefit analysis various operation /investments etc. (4)Special report should be submitted for each quarter (July to Sep etc) on any functional area within the next quarter Payment for the same is subject to acceptance of the report (Report will be accepted if it is of a reasonable quality bringing out scope for revenue increase, reduction in expenditure, system improvements etc). 4.INSTRUCTIONS ON CHECKING CASH AND STOCK TRANSACTIONS: The following are some of the checks of general nature to be exercised while conducting audit of cash and stock transactions. These, however, should not be taken as exhaustive. Other checks suitable to the occasion should be adopted wherever necessary. (1) It should be verified that all transactions (either cash or stock) are promptly and properly recorded in the relevant records and there is no delay or omission on this account. (2) It should be verified that amounts received to the account of FA& CAO or other source have been taken to account on the same day. (3) It should be verified that amounts received from the FA&CAO account on account of permanent and temporary advances etc. for disbursement are not retained in hand beyond the permissible time limit and the undisbursed amount, if any, promptly deposited with FA&CAO account. The permanent and temporary advance as shown in the accounts should be checked to see that these are correctly maintained and accounts there of have been rendered to the FA&CAO account within the prescribed time. Irregularity or delay in adjustment should be brought to notice of FA&CAO. (4) The correctness of stock entry certificates recorded on the vouchers in support of purchases should be checked in respect of any one month being selected by the Accounts Officer/FA&CAO. (5) It should be verified that issues from the stock are made on proper requisitions, duly acknowledged by the recipients and correctly entered in the Stock Registers. (6) Accuracy of the balances shown in the cash and stock books should be checked in all cases. (7)The correctness of the amounts drawn in pay bills and T.A. Bills should be checked with the attendance Register, tour particulars, vehicle log books etc. (8) The amount of deductions made in salary bills towards leave or absence to be checked with reference to attendance. (9) Physical verification of stores of general nature, tools & plants and other general stores in all departments including guest houses and other offices of the Port Trust should be done. (10)Apart from stores of general nature, stock of medicines, spares, wherever maintained shall also be verified. (11)Stock of postage stamps, bank guarantees wherever held are to be checked.

10 (12) Register of reference books should be checked to see that books purchased during the year have been taken to stock and proper record is maintained as to issues and returns. (13)It should be verified whether the cash balance available in the cash chest are verified daily. 5. VERIFICATION OF SERVICE BOOKS OF EMPLOYEES: The service books including the leave accounts of all the employees should be checked to verify whether they are maintained properly as per instructions contained in Rules 196 to Rule 203 of the Supplementary Rules. 6. REVENUE RECEIPTS: 1) GENERAL It should be verified whether all charges due to the Port Trust are correctly raised / realized as per the approved tariff, demands raised promptly and collections realized and credited to the Port account immediately. All instances of undue retention of authorized collections by other departments without remitting to the Port account should be brought to notice. Unauthorized collections made by other departments, if any, should be brought to notice. It should also be verified whether adequate steps have been taken to realize the arrears, if any. The raising of demand and collection of revenues from PPP operators are also to be covered. 2) ESTATE RENTAL, WATER SUPPLY AND ENERGY CHARGES I) Rent: It should be checked whether demand for rent, charges for supply of water and energy are raised promptly in all cases as per approved tariff and with reference to Building and Land allotments in force. Also it should be verified whether all demands have been realized as per demand and credited to Port account immediately. II)Electricity charges: In the case of electricity charges the first verification to be carried out is whether the total energy drawn / consumed is properly allocated among the Port, Port users contractors and employees. Then it should be ensured whether the demands have been generated and issued to all cases which should tally with the allocation done earlier. Then it is to ensure realization of charges demanded and remittance to Port account as the same. III)Water charges: As in the case of electricity charges, water charges recoverable from various users should be first assessed out of the total charges paid to TWAD Board. Demand and collection of charges to be verified in the similar way as in the case of electricity charges. 3) MISCELLANEOUS RECEIPTS:

11 The basis for assessment of charges for miscellaneous services, charges for hire of machineries, equipments, centage charges for deposit works/works done for outside parties, raising of demands, collection of dues and crediting the dues collected in Port account should be verified. 4)CHECK OF DIVISIONAL OFFICE RECORDS: i.while auditing the workshop accounts, the job cards and out turn register should be checked in detail. The correctness of the allocation of expenditure on repair and maintenance of workshop to various works should be checked. The use of new parts should be entered into the log books and other connected registers. The account and manner of disposal of old and replaced parts should be particularly checked. In the case of jobs under-taken on behalf of private parties it should be seen whether the cost thereof has been calculated according to rules, recovered and credited to the Port Trust accounts. ii. The log books of vehicles, including buses, lorries, light vehicles. two wheelers etc. cranes, machines should be checked regarding mileage run, working hours, consumption of fuel, lubricants, furl, etc. It should be seen whether the log books have been properly maintained and entries thereon have been duly attested by proper authorities where the log books exhibits use of vehicle, machine etc. by private parties, it should be seen whether full and correct hire charges have been recovered. If the log book reveals misuse the reason there for should be investigated and brought to notice. iii.the accounts of Tools and Plants should be checked. iv.in case of purchases it should be verified whether purchase have been made as per the prescribed procedure. v.while stock verifies will confine themselves to verification of available balances as per bin cards, internal audit is expected to test check entry of items from the goods received statement and indents to the bin cards. The balancing of the bin cards should also be checked in order to ensure the correctness of the quantitative balances. Special attention should be given to the review of ABC analysis, list of missing items, non moving items and excessive balances. vi.where Material At Site (MAS) Accounts are maintained, it should be seen whether the accounts are maintained as per provisions of CPWD A Code and ground balances are verified at least once a year. vii.the accounts of the out patient treatment charges collected at Port Trust Hospital should be verified and to see whether amount was properly accounted for.

12 viii.the records maintained at Estate section towards rentals collected for hiring Community Hall for private functions should be verified based on the occupation. The demand, collection and remittances shall be verified. ix.the records relating to Port Guest House on occupation collection and remittance of rent and other charges shall be verified. x.the Internal Audit should carry out mandatory scrutiny of the bills and records listed out in Annexure- IV. 5. ERP related implementation The Port is in the process of implementing the ERP by adopting SAP for all operations of Port. The Internal Audit is to ensure continuously the control system is in the place for raising demand, collection of revenues, TDS and other deductions in the payments and interfaces points between POS, HR, etc. with FI and also like PPP operations. 6.Vouching contract Payment & Tenders of high value: The important activities like finalization of Tenders for supply of Machinery, award of contract for Dredging and payment to Contractors/Suppliers and high value Contractors are to be audited by Internal Auditors in addition to other works listed above. 7.COMPLIANCE: The firm should furnish a compliance report as per Annexure B in respect of pending reports/remarks till completion of action/closure status. Information to be furnished along with the tender Annexure II

13 For evaluating the status of firms participating in the tender for the work INTERNAL AUDIT OF FINANCIAL TRANSACTIOMS OF V.O.CHIDAMBARANAR PORT TRUST 1. Name of the firm : 2. Registration no. and date : 3. Agency whom registered/c.a.g/r.b.i With details : 4. Validity of the registration : 5. Address of the firm : 6. Telephone no. : 7. address : FAX no: 8. No. of years in the business : PAN No.: 9. Statistical information about the firm for the past three years: No. Particulars Total man power in the firm all inclusive 2. Total number of licensed professionals ( Chartered Accountants and Cost Accountant) 3 Total number of clerical assistants 4 Total number of assignments of similar nature done so far. Copies of the works orders and Completion reports in respect of assignments already completed to be given. 5 Total number of assignments on hand. Copies of work orders on hand to be given Enclose the details of assignments done sofar/on hand in the annexure. Enclose copies of:

14 1. Copies of latest Income -tax return filed. 2. Copies of Certified Statement of Accounts of the firm for the past 3 years 3. Xerox copy of income tax PAN card. 4. Power of attorney to establish the authenticity. 5. Copy of the Registration No. for Service Tax registration with Central Excise Dept. Price bid for performing the work Annexure -III

15 INTERNAL AUDIT OF FINANCIAL TRANSACTIONS OF V.O.VHIDAMBARANAR PORT TRUST, TUTICORIN ON CONTRACT BASIS Rate per financial year in rupees Description of work Conducting Internal Audit of all financial transactions of V.O.C. Port Trust, in accordance with the Accounting Standards, Income Tax Act and other accounting procedures of the Port as set out in the tender document under the Scope of work for a period of two years. 1) Professional Fee a) C.A.-Final b) C.A.-Inter c) B.Com d) Class lv 2) Professional fee for Report preparation 3) Cost of preparing quarterly report No.of Visits p.m./days 8 visits 25days X1 25days X3 25days X1 Rate per visit/day Per report X 4 Amount p.a Amount For 2years Cost of Preparing quarterly special report Total Plus Service Tax in any Grand Total The P.A rate indicated above is valid for second year also. Note: a) Payment will be made on monthly basis. b) Rate shall be indicated in figures as well as in words. In case of differences, the amount stated in words will prevail. c) The rate should be written or typed legibly and free from erasures, overwriting and corrections. Corrections/overwriting if unavoidable shall be made by scoring out and rewriting afresh and it shall be attested with dated signature. d) The rate shall be all inclusive. Only Service tax as applicable will be reimbursed extra. e) The amount payable is subject to TDS of all kinds. Signature Seal of the Company ANNEXURE IV

16 MANDATORY SCRUTANY OF BILLS AND RECORDS I. REVENUE SIDE Sl.No. Area No. of files/bills to be Checked on random basis p.m. 1 Vessel Related Charges Cargo Related charges 25 3 Miscellaneous charges 10 4 Lease of Lands- rental charges (Long term Lease) 5 5 Lease of Lands- Rental charges ( Short term Lease) 10 6 Water charges 5 7 Electric charges 5 8 Temporary Power supply 1 9 Guest House charges (Collection & Remittance) 5 10 Bus Pass Collection( Staff) 5 II Payment Side Sl.No. Area No. of files/bills to be Checked on random basis p.m. 1 Refund of Revenue Bills 5 2 Work bills 5 3 Purchase Bills 5 4 E.M.D.Refunds 5 5 Medical Bills(Firm Bills) 5 6 Pay bill recovery refund 5 No.of Officials Previous Month Current Month Pay bill drawn 7 Pay bill /Pension drawn

17 III PHYSICAL VERIFICATION Sl.No. Area No. of bills to be Checked 1 CASH VERIFICATION a. Cash Section Once in a month b. Green gate Check post/zone A Pass issue once in a month Sl.No. Area No. of bills to be Checked 2 STOCK VERIFICATION a. Stores Once in a month at least 5 times. b. Petrol Bunk Once in a month c. Sub division Stores 5 Sub divisions once in a month d. Hospital/Dispensary Medical Stores once in a month e. Fixed Assets Once in a year in the month of March. Sl.No. Area No. of bills to be Checked 3 ACCOUNTING SIDE a. Suspense Register Review 10 Suspense Register every month b. Cash book Rev./Fund/Other Fund Cash Books Every month c. TDS Recovery/Payment Once in a month d. Remittance including CENVAT Credit adjustment Once in a month e. VAT Recovery/Payment Once in a month f. Monthly Accounts Review Once in a month Annexure V

18 Form of agreement This agreement made this. Day of 2015 between the Board of Trustees of the V.O.Chidambaranar Port Trust, a body corporated under the Major Port Trust s Act 1963(hereinafter called the Board )which expression shall, unless excluded by, repugnant to the context, be deemed to include their successors in office)on one part AND..(hereinafter called the Contractor which expressed shall, unless excluded by, or repugnant to the context be deemed to include his heirs,executors,administrators, representatives and assigns or successors in office)on the other part. WHERE AS the Board is desirous of executing the work, WHERE AS the Contractor has offered to execute and complete such work and WHERE AS THE BOARD has accepted the tender and WHERE AS the Contractor has furnishe a sum of Rs..(Rupees )as Performance Security as per terms of contract for the due performance of this Contract. Now this agreement witnesseth as follows: 1. In this agreement words and expressions shall have the same meaning as are respectively assigned to them in the tender document hereinafter referred to. 2. The following documents shall be deemed to form and be read and construed a part of this Agreement, namely, (f) Tender document with all Annexures. (g) All amendments to tender document; (h) Work order; (i) Letter of acceptance/acknowledgement; and (j) Agreement deed. 3. The contractor hereby convenants with the Board to execute and complete the work in conformity and in all respects with the provisions of the Contract.

19 4. The Board hereby convenants to pay the Contractor in consideration of the execution and completion of the works, the contract price at the time and in the manner prescribed by the Contract. IN WITNESS WHEREOF the parties hereunto have set their hands and seals the day and year first written. The Common Seal of the Trustees of V.O.Chidambaranar Port was hereunto affixed and (11) The Chairman thereof has set his hand in the presence of (12) Signed and sealed by the Contractor in the presence of: Form of Bank Guarantee for Performance Security Annexure VI

20 In consideration of the Chairman representing the Board of Trustees of V.O.Chidambaranar Port Trust(Herein after called the Board ) having agreed to extend (hereinafter called the said agreement ) of Performance security for the due fulfillment by the said contractor of the terms and conditions contained in the said agreement on production of Bank Guarantee for Rs..(Rupees....) 1. We (hereinafter referred to as The Bank ) at the request of. contractor do hereby undertake to pay to the Port on amount not exceeding Rs against any loss or damage caused to or suffered or would be caused to or suffered by the Port by reason of any breach by the said contractor of any of the terms or conditions contained in the said agreement. 2.We do hereby undertake to pay the amount due and payable under this guarantee without any demur, merely on a demand from the Port stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the Port by reason of any breach by the said contractor of any of the terms and conditions contained in the said agreement or by reason of the contractor failure to perform the said agreement. Any such demand made on the bank shall be conclusive as regards the amount due and payable by the bank under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs We undertake to pay to the Port any money so demanded not withstanding and dispute of the disputes raised by the contractor in any suit or proceedings before any court or tribunal relating thereto our liability under this present being absolute and unequivocal. 4.The payment so made by us under this bond shall be valid discharge of liability for payment there under and the contractors shall have no claim against us for making such payment. 5.We further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the

21 performance of the said agreement and that it shall continue to be enforced till all the dues of the Port under or by virtue of the said agreement have been fully paid and its claims satisfied or discharged or till the Finance department, V.O.Chidambaranar Port Trust certifies that the terms and conditions of the said agreement have been fully and properly carried out by the said contractor and accordingly discharges this guarantee. Unless a demand or claim under this guarantee is made on us in writing within three months from the date of expiry of the validity of the guarantee period we shall be discharged from all liability under this guarantee thereafter provided further that the bank shall at the request of the Port but at the cost of contractor renew or extend this guarantee for such further period or periods as the Port may require. 6.We. further agree with the Port, that the Port shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said agreement or to extend time of performance by the said contractor and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by the reason of any such variations or extension being granted to the said contractor or for any forbearance, act or omission on the part of the Port or any indulgence by the Port to the said Contractor or by any such matter or thing whatsoever which under the law relating to securities would but for this provision have effect of so relieving us. 7.This guarantee will not be discharged due to the change in the constitution of the bank or the contractor. 8.We.. lastly undertake not to revoke this guarantee during its currency except with the previous consent of the Port in writing. 9.This guarantee is valid upto..(period) Dated the day of.. Seal of Bank. FINANCIAL BENEFIT STATEMENT (Should be a annex to each audit report vide Annexure l Rules3(1) ) ANNEXURE A

22 Sl.No. Month Para No. Amount indicated in the report Lower income realization (or)over payment Amount recovered Details Recovery of ANNEXURE - B COMPLIANACE REPORT (Should cover reports which are submitted 2 months earlier)with reference to Annexure l Para(7)

23 Sl.No. Month Para No. Brief remarks Reply accepted/ or not Present status