AO(Container)/II Container/CA /1891/14/FR.
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1 AO(Container)/II Container/CA /1891/14/FR. Dt To The Chartered Accountants. Sir, Sub: Verification of Revenue earned by M/s CITPL-Quotation for Appointment of Auditors for concurrent audit for the year Reg. -ooo- It has been decided to appoint professional Chartered Accountants for Concurrent Audit ensuring a system of proper maintenance of accounts and for checking and verifying the revenue earned for the period from April 2014 to March 2015 by M/s Chennai International Terminals Pvt. Ltd., to whom the Second Container Terminal of Chennai Port Trust has been handed over for the management and operation under lease agreement for 30 years. Hence, you are hereby requested to send your profile along with your quotation as per format given in Annexure II in a separate sealed cover on or before for the job as specified in Annexure I. Thanking You, Yours faithfully, Senior Deputy Chief Accounts Officer (Revenue) Encl: As above.
2 ANNEXURE- I QUOTATION FOR CHECKING,VERIFYING AND ISSUING A CERTIFICATE FOR THE REVENUE EARNED BY M/s CITPL FOR THE PERIOD FROM TO Offers are invited from the Chartered accountant/ Chartered accountant firms to quote their rates for the following scope of work. 1. Introduction: Chennai Port Trust has entered into a long term Agreement for a period of 30 years with M/s Chennai International Terminal Pvt. Ltd. (CITPL) for the management and operation of the Container Terminal. 2. The main clauses of the Agreement relevant to this job are as follows: 2.1. Article 6 - Licensor s Assets (copy enclosed) 2.2. Article 7 - Project Requirements, Rights and Obligations (copy enclosed) Article 9 - General Obligations of Licensee- states the Licensee s obligations under the license (copy enclosed) 2.4. Article 12: deals with the Tariff payments to be made by the Licensee (copy enclosed) Article 15 - Insurance during the construction period and Operation period (copy enclosed).
3 3. The Main Financial Obligations Of The Licensee M/s CITPL Are As Follows: 3.1 As per Article 11 (i) The licensee shall ensure proper and accurate record/data/accounts relating to operations of the Project Facilities there from by M/s CITPL. (ii) Ensure production of necessary books and accounts, connected vouchers and other documents for scrutiny and verification by the licensor with respect to earnings of the licensee in order to comply with accurate Revenue Share payment. 3.2 As per Article 13 the licensee is under obligation to pay the revenue share as and when the same becomes due and payable. M/s CITPL have to make revenue share payments to the licensor, at % of the gross revenue earned from operation, storage or in any other form recovered / charged from users. Any discounting or rebating in tariff shall not affect the amount of royalty payable by the licensee which shall be calculated on the basis of the amount fixed by the TAMP or the actual tariff recovered/ charged for the actual throughput whichever is higher whether or not licensee is able to recover it or not. 3.3 As per Article 14 the Licensee agrees to assign, hypothecate, sublicense, mortgage or create any third party right, title or interest of any nature in the Licensor s Assets. 3.4 As per Article 9.8, 9.9 and 9.10 Main Line Vessels. 3.5 Appendix 13 - This stipulates the Investment Plan tobe achieved by the Licensee on or before 6 th Operating Year. 3.6 Appendix This indicates the annualminimum Guaranteed Traffic to be handled by the Licensee during the operating year.
4 4. Scope Of Work : 4.1. Ensure proper and accurate record/ date/accounts relating to operations of the Project Facilities and services and the revenue earned there from that are maintained by M/s CITPL. Ensure compliance with Agreement Conditions relating to Non- Transshipment traffic and quantify the shortfall, if any, for the period from to Track the Investment made by M/s,CITPL till date with detail of such investment. Auditing and verifying the correctness of the revenue earned by M/s CITPL on monthly basis from to and issuing a certificate to that effect every monthly and annually Man Power Requirements: The chartered Accountant firm shall nominate a partner exclusively to deal with above assignment and co-ordinate with Chennai Port Trust at all times. The partner shall be in a position to visit the Port at anytime on any number of occasions required by the Port for the purpose of this contract. The Audit team shall be headed by the partner and the team shall comprise of at lease 3 Audit assistants. Any change in the partners nominations shall be made only with the prior written consent of Port Trust. 5. Instructions/Guidelines For Quoting Firms: 5.1 Rates shall be firm and Service Tax and other Taxes/ duties shall be quoted separately. 5.2 No escalation on any account, excluding those on account of statutory Taxes and Duties will be allowed. *************
5 ANNEXURE- II Quotation Scope Of Work Unit No Of Units (i) To Ensure there is proper and accurate record/data/systems and procedures/accounts relating to operations of the Project Facilities and Services and the revenue earned there from are maintained by M/s.CITPL for the year and issue a certificate on completion. Yearly basis 12 months of the year Rate Per year Total Amount Rs.
6 (ii) To ensure only the rates approved by TAMP in the Scale of rates are collected by M/s CITPL. If other charges are collected, whether the same has been taken into account for calculation of Revenue Share. In respect of charges levied at a lesser rate than the approved rates, to ensure that the difference in charges should have been included in gross earnings for the purpose of Revenue share payable. Where the rates charged is higher than the TAMP approved rate this should be highlighted. (iii) Auditing and verifying the correctness of the revenue earned by M/s CITPL and the Revenue share paid by the firm to ChPT for 12 months of the year and to issue a certificate of the correctness of the revenue earned and Revenue share paid by M/s CITPL to ChPT for the year From April 2014 onwards the audit shall be conducted on monthly basis and monthly report of the actual revenue earned by CITPL and revenue share paid to ChPT shall
7 be certified. In addition to this Annual Audit report shall also be furnished. (iv ) Track the Investment made by M/s. CITPL till date with details of such investment. (v) Ensure compliance with Agreement Conditions relating to Non- Transshipment traffic and quantity the shortfall, if any, for the period from April, 2014 to March, Total for 12 months Add: Service Tax@ 12.36% Grand Total for 12 months 2.Other Terms and Conditions : 1. The above rates shall be firm during the entire contract and no escalation will be allowed on any account. Service Tax and other Taxes/duties shall be quoted separately. 2. Payment for the above work shall be made on completion of Auditing, Issuance of Certificate and on submission of monthly Audit Report for the year x
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