Annexure - A State Bank of Bikaner & Jaipur Inspection Department, Head Office, Tilak Marg, C-Scheme, Jaipur Tel: 0141-5101526 Empanelment of CA Firms for Concurrent Audit Work Applications are invited from Chartered Accountants firms/ LLP as per gradation by RBI for carrying out Concurrent Audit on full time, contractual basis (renewable every year, at Bank's discretion) at its selected Branches / Offices / Credit Processing Centers (CPCs). Bank reserves its right to include/ exclude other branches/entities for Concurrent Audit Work, as per requirement. Last date for receipt of Applications: 30.04.2015 C A Firm/ LLP, who are interested may submit Application / Bio-data on the enclosed format. Terms and Conditions: a) Expertise in audit of Banking related areas and experience as concurrent auditors of other Banks in the past is preferred, we suggest to specifically mention, detail thereof. b) Preference will be given to locally based Chartered Accountants or proximity to where the Branches/ offices are situated. c) One employee/articled Clerk, trained by ICAI on Concurrent Audit, is to be stationed on a full day basis at the branch on an ongoing basis. d) A partner of the firm must visit the branch at least two/three times a week depending upon business and risk profile of the branch/cpc. e) The Concurrent Auditor should submit daily audit report to Branch on irregularities observed for timely rectification. f) Audit Firm should acknowledge the appointment letter as a token of the Firm agreeing to the terms and conditions of appointment.
g) The Firm should have, at least two FCA partner for undertaking concurrent audit of branches. Such FCA partners should have been with the firm for at least two years in immediate past. h) Mere submission of application does not, in any way, constitute guarantee for allotment of audit job from the Bank. After empanelment the work be allotted as and when need arises at the sole discretion of the Bank. i) The following firms are not eligible to submit the applications:- i. The firms/ any partner should not have been disqualified/ de-penalised or whose appointment has been terminated by RBI/ ICAI/ Bank/ Any other Bank on an earlier occasion. ii. The chartered accountant firms or any sister/ associate concern of such firms which are on statutory audit panel of the Bank are not required to apply. j) Those already on the Panel of our Bank and also those who have submitted their Applications in the past for such empanelment need to apply de-novo. Eligibility criteria and Audit remuneration: 1. Eligibility criteria a) Chartered Accountants should be either check category (Grade) 2 or 3 as per RBI panel with gradation preference will be given in short listing of applicant if they have experience as concurrent auditors of other banks, suggested for Statutory Branch Auditor Appointment. b) It should be a partnership firm of Chartered Accountants. c) CA firm should have qualified Information System Auditor (CISA/DISA) with necessary exposure to systems audit. d) Weightage will be given to the firm where the partners themselves were exbankers or the firm has got tie-up with ex-bankers with requisite experience and exposure. e) The CA firm should have necessary office set up and adequate personnel to ensure proper deployment and timely completion of the assignments. f) The CA firm has to execute undertaking of fidelity and secrecy on its letterhead in the format prescribed by the Bank.
g) The assignment should be carried out in a professional manner and in case of any misconduct & negligence the Bank is free to report the matter to ICAI / RBI under the guidelines from time to time. This will be in addition to the disengagement from the assignment. h) The CA firm should not sub-contract the audit work assigned to any outside firm or other persons even though such persons are qualified chartered accountants. i) A declaration to be furnished by the CA firm that credit facilities availed by the firm or partners or firms in which they are partners or directors including any facility availed by a third party for which the firm or its partners are guarantor/s have not turned or are existing as non- performing assets as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would get terminated besides the firm being liable for any action under ICAI / RBI guidelines. j) CA Firm to give undertaking to avoid conflict of interest that they will not have any professional or commercial relationship with the borrowers of the Branch / Department which they are auditing. k) The CA Firm have to sign on the Do s & Don ts statement in order to have proper arms length relationship with the Branch/ Department which they are conducting audit. l) The CA Firm to submit declaration that Firm and its partners are duly qualified as Auditors in terms of section 141 of the Companies Act, 2013 and our firm or any of our partners do not suffer from one or more of the disqualifications stipulated in Section 141 of the Companies Act, 2013 or under any other law for the time being in force. m) Any other terms and conditions of the assignment would be decided by the Bank on a case-to-case basis.
2. The remuneration would be as under : Group I Branches/ BPR entities Group II Branches/ BPR entities Group III Branches Rs. 25000/- p.m.(+ Ser. Tax) Rs. 20000/- p.m.(+ Ser. Tax) Rs. 15000/- p.m.(+ Ser. Tax) TDS as per applicable rate. Bills will be paid on a monthly basis. Scope of Concurrent Audit / Areas to be covered: Concurrent Auditor has to ensure and certify the Branch/ Office has complied with following things:- a) Compliance with RBI Guidelines / Guidelines of other agencies such as FEDAI / IBA. b) Compliance with Income Recognition and Asset Classification (IRAC) norms (to verify whether the classification of advances has been done as per stipulated guidelines). c) Whether any of the activities prohibited by RBI are undertaken. Whether important RBI guidelines issued from time to time in the field of advances, foreign Exchange, investments and other statutory requirements prescribed by RBI, are being complied with. d) Compliance with guidelines / ground rules of agencies such as FEDAI / IBA. Verification of various statements, returns prescribed by RBI. e) Compliance with provisions of Banking Regulation Act, 1949. f) Compliance with norms governed by Section 20 of Banking Regulation Act in regard to granting loans/advances against own shares etc. g) Section 20A of Banking Regulation Act: Restrictions on power to remit debts. h) Section 26 of Banking Regulation Act: Submission of returns of unclaimed deposits.
i) Section 340 of Banking Regulation Act: Production of documents of conditional nature to any other authority. j) Section 452 of Banking Regulation Act: Return of paid instruments to customers. k) Banking Companies (Nomination Rules) Section 45 ZC, 45 ZE and 45 ZF of Banking Regulation Act. l) Any other provision which may be identified by Banking Operations Department of RBI for verification of compliance from time to time. (m) Forex / Security Transaction: To verify all FOREX / Security Transactions undertaken at the branches / dealing rooms. The Concurrent Auditor will have to verify whether the transactions or decisions are within policy parameters laid down, do not violate provisions of Exchange Control Manual / FERA 1973 and other RBI instructions and they are within delegated authority. (n) Any other guidelines / instructions issued from time to time from the Bank, Govt. of India, RBI, State Bank of India and/or any other Statutory Authorities. If the services of Concurrent Auditors are not satisfactory, Bank will have the right to terminate the contract, any time by given one month s notice. (o) The Concurrent Auditor to perform the function of Statutory Auditor in respect of providing various Certifications done presently by Branch Statutory Auditors, covering NPA provisioning, Insurance coverage, P & L Account, ALM, CRAR, DICGC, LFAR etc., similarly, Certification regarding Tax Audit etc. (p) The Bank reserves its rights to reject any or all the applications without assigning any reasons therefore and no correspondence will be entertained in this regard. The Bank s decision in empanelment shall be final and binding
The applicants will have to submit these terms and conditions duly signed and accepted by them along with their applications failing which the same are likely to be rejected by the Bank. I have read and understood the above terms and conditions and shall abide by the same. SIGNATURE OF APPLICANT NAME ADDRESS CONTACT NO. ICAI MEMBERSHIP NO. THE ENVELOPE MUST STATE PROPOSAL FOR EMPANELMENT "CONCURRENT AUDIT". & SHOULD BE REACH AT INSPECTION DEPARTMENT, HEAD OFFICE, TILAK MARG, C-SCHEME, JAIPUR BEFORE DUE DATE.
( On Firm s Letterhead ) BIODATA FOR EMPANELMENT AS CONCURRENT AUDITORS State Bank of Bikaner & Jaipur, Inspection Department, Head Office, Tilak Marg, C-Scheme, Jaipur Date : We hereby apply for empanelment as Concurrent Auditors and furnish hereunder the requisite biodata / information/ documents. 1 Name of the Firm / Company ICAI Membership No. 2 Constitution (Partnership firm/ LLP) 3. Date of Establishment 3 Registered/ Communication Address of the Firm/ LLP 4 Contact phone/ mobile Nos. 5 PAN No/ TIN No.
6 Nature of Present Activity of the Firm/ Company & since when 7 Address of Branch Offices 8 E Mail Address 9 Registration Number of firm/ LLP with ICAI 10 Unique Code Number & Grade Suggested by RBI for Statutory Branch Audit 11 Whether any disciplinary action by ICAI institutes/ pending against any member/ partner of the firm/ LLP (if yes give details) 12 Whether any assignment given by SBBJ in past was refused/ discontinued/ terminated 13 Manpower (Numbers) A B Qualified Professionals (i) Partners (ii) Others Articles
C Other Audit Staff 14 Details of Current Assignment of Concurrent Audit of PSB on hand Particulars of Partners/ Members Sr. No. Name Qualification ICAI Membership No. Date of Certificate of Practice FCA/ ACA Mobile No. DISA/ CISA 15 Details of Associate Firms, if any, of the applicant firm/ LLP and their current assignment of concurrent audit of PSB on hand 16 Additional Information:- A If firm/ partner/ LLP have availed any credit facilities/ stood as guarantor with SBBJ, please furnish following details: (i) Name of partner (ii) Name of Bank's Branch (iii) Nature of Credit Facilities/ Guarantee (iv) Account No.
B If any of your client is having credit facilities with SBBJ, furnish name of the branches: 17 Revenue & Net Profit during the last 3 years 18 Names, Educational/ Professional Qualification, Phone No. & Addresses of the firm/ Partners Particulars of Registration/ Affiliation with the Institute of CA/ Architects/ Valuers/ Engineers, IT/ Wealth Tax Authorities (CBDT), RBI, any other Organization, as CA/ Architect/ Valuer/ Auditor/ Stock auditor/ NBFC/ Auctioneer/ Mgt Consultants. 19 Details of Present Set-up/ Infrastructure Available to deal with concurrent audit work 20 Particulars of empanelment with other banks/ financial institutions 21 Past Experience in concurrent audit (with names of clients, nature of tasks handled and results achieved). 22 Furnish details if the firm has been depanelled by any bank/ organization in the past Name of Bank Branch Period Note: Please attach self-attested photographs and photocopies of proofs relating to : a) Photographs of the Authorized Signatory of the firm. b) Identity & addresses of the firm and the all partners/ all directors.
c) Partnership deed/ memo & articles of association of LLP. c) Qualifications & experience of the partners/ directors e) PAN/ TIN Card of firm/ LLP. f) I.T. Returns (last 3 years) g) Empanelment with other banks/ institutions. h) Registration/ Affiliation with the Institute of CA/ Architects/ Valuers Engineers, IT/ Wealth Tax Authorities (CBDT), RBI, any other Organization, as CA/ Architect/ Valuer/ / Engineers/ Auditor/ Stock auditor/ NBFC/ Auctioneer/ Mgt Consultants/Concurrent/Statutory Auditor We solemnly declare that the information furnished above is complete and entirely true, and nothing has been concealed. We affirm that terms & conditions of State Bank of Bikaner & Jaipur relating to empanelment of Concurrent Auditors are acceptable to us. For & On Behalf of Firm : Authorized Signatory Name & Designation ICAI Membership No. Encls : 1. 2 3 4 5 6 7 In case any information/ document is found as untrue/ misleading, the Bank may take necessary action, including de-penalising/ blacklisting of the firm/ member, as it may deem fit. Note:- (I) No Columns of the application form are to be kept blank. (II) Since large number of applications being received for empanelment, no communication will be sent by the Bank in respect of firms, which will not be selected.
State Bank of Bikaner & Jaipur, Inspection Department, Head Office, S.No Coverage Area Scope of work expected from Service Provider/ CA Firm Quantum of Measurement Penalty to be imposed (For Service Provider / CA Firm) Attendance at the Work Area. 1 2 Detection of Income Leakage 3 Detection of Major lacunae in the conduct of the account, systems & procedures etc., 4 Failure to comment on Frauds, which may cause loss to the Bank. Attending branch/unit on daily basis, by Representative of the Service Provider /CA Firm, and 2-3 times a week by the Partner of the Firm. On a day to day basis income leakage, if any detected, to be reported. Timely detection of major lacunae Detection/ Reporting of Fraud. Days of Absence in a month in attending the branch/unit (i) by the representative of the Service provider / Firm or (ii) by the Partner of the Firm Non-detection/ non-reporting / short recovery of income leakage from the date it becomes due within a period of 2 weeks. The penalty to be levied is on account of opportunity loss for the Bank. Non detection of major lacunae as enumerated in the CRM Value Statements of WBCAS. Non detection/ not reporting of Fraud arising on account of failure in implementation of systems & procedures and security lapses. proportionate remuneration of the month on a pro-rata basis for the days of absence. Eg.30 days in a month; Remuneration of Rs.16000/-p.m. with an absence of 1 day : Penalty to be charged : Rs.550/- For Non-detection/ non-reporting: 0.50% of the amount, in the area of income Leakage not detected/ reported. i.e. (i) Processing Fee (ii) Upfront Fee (iii) BG/LC Comm. (iv) Locker rent etc., (Overall cap for both not to exceed 10% of monthly remuneration). Eg. Processing Fee of Rs. 1 lac. is identified by an Auditor other than CA. after 2 weeks of its becoming due. Penalty will be Rs.500 for one instance. If such instances are more, then overall cap of 10% of remuneration i.e.rs.1600/- (10% of 16000) to be charged. Rs.250/- per major lacunae in an account with a maximum penalty of 5% of monthly remuneration. 5% of monthly remuneration per instance, with a cap of 10% of monthly remuneration.
5 Detailed Scrutiny of Accounts and submission of observations. Detailed Scrutiny of Accounts within a reasonable time and submission of observations online on a daily basis. Detailed scrutiny of accounts by commenting as per Value Statements mentioned in WBCAS, if not done: Rs.250/ per account with an overall cap of 5% of the monthly remuneration 6 Submission of Monthly / Qly. Concurrent Audit Reports/ Management Letter (format & Annexure as available in Bank s Intranet site) to the BM/ Zonal Head/DGM (Insp.& Audit)/GM (Insp. & Audit) & GM (Vigilance) 7 7. Unacceptable delay in the performance of obligations. Monthly Reports to be submitted On 5 th of the succeeding month to the BM/ Zonal Head. Quarterly on 7 th of next month of quarter ended to the Branch/ Zone & Inspection & Audit Department and Management Letter to Zonal Head/DGM (Insp.& Audit)/GM (Insp. & Audit) & GM (Vigilance) with their report by 7 th of next month of quarter ended. Should be done in accordance with the time schedule specified in the Agreement. Eg. All accounts within 3 months and thereafter once, at the time of renewal/ review/ new sanction; Non submission as per schedule Identified areas of deficiency in performance: (i) Partner s not attending branch/ unit 2-3 times a week; (ii) Non-deputation of representative every day; (iii) Non-submission of Reports; (iv) Non-detection of Income leakage in time, resulting in opportunity loss; & (v) Non-detection/reporting of Frauds. (vi) Poor Quality of Reports. Non Submission: 10% of Audit Fee p.m. Non submission by over 3 months: Termination of the Contract giving one month s notice. Delayed Submission: Rs.100/ per day till submission. (With a overall cap of 5% of monthly remuneration p.m.) Termination of Contract, by giving a one month s notice.