Telangana Grameena Bank Audit, Department, Head Office, Nallakunta, Hyderabad 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 / RACPC (Retail Assets Credit Processing Centre). Bank reserves its right to include / exclude other branches / entities for Concurrent Audit Work, as per requirement. Last date for receipt of Applications: 22.07.2016 at 3.00 PM CA 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, details 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 having qualified Information System Auditor (CISA / DISA) with necessary exposure to systems audit is preferred. d) Weightage will be given to the firm where the partners themselves were ex-bankers 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. Firms with head quarters where the TGB branch is to be audited is desirable. f) The CA firm has to execute undertaking of fidelity and secrecy on its letterhead in the format prescribed by the Bank. Agreement also provides for suitable penalties for non-performance / negligence. Service level agreement provides for these conditions. 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 nonperforming 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. n) Govt. of India / RBI guidelines on conduct of concurrent audit be followed scrupulously. o) Empanelment is for a period of one year and extendable at the discretion of the Bank. 2. The remuneration would be as under : Scale-III / IV Branches - `12,000/- per Branch / per month. Scale-II / I Branches - `7,000/- per Branch / per month. Accounts Dept., Hyd - `12,000/- per Dept. / per month. 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 / NABARD 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 / NABARD 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 / NABARD. 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, NABARD 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 q)rbi circular on minimum audit program for concurrent auditors will be followed (DBS.CO.ARS.No. BC. 2/ 08.91.021/ 2015-16 July 15, 2015). r)a separate service agreement with suitable penalty clauses for nonperformance/negligence will have to be submitted before joining the Bank s panel. The agreement will be circulated after selection. 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.