TENDER NOTIFICATION FOR APPOINTMENT OF AUDITING FIRMS in KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED (GOVERNMENT OF KARNATAKA UNDERTAKING)

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

(GOVERNMENT OF KARNATAKA UNDERTAKING)

#16/I, Millers Tank bed area,

Ban­ga­lore – 560 052. Ph: 080 22096712

No: KFCSC/IAO/ADM/2014–15                                                 Date: 16-10-2014

 

The Kar­nata­ka Food and Civ­il Sup­plies Cor­po­ra­tion Lim­it­ed (KFCSC) of Ban­ga­lore, intends to invite ten­ders (as per KTPP Act 1999) for Divi­sion­al wise appoint­ment of audit­ing firms for car­ry­ing out the work of Inter­nal Audit of the Dis­trict offices of Kar­nata­ka Food & Civ­il Sup­plies Cor­po­ra­tion Ltd., cov­er­ing in each divi­sion of Kar­nata­ka, for the remain­ing finan­cial peri­od of 2014–15 and for the finan­cial year of 2015–16.

List of Dis­tricts under each divi­sion are detailed below:

Sl.No.	Divi­sion	Dis­tricts
01	BELGAUM	Bel­gaum, Bijapur, Kar­war, Haveri, Gadag, Bagalkote, Dharwar
02	GULBARGA	Gul­bar­ga, Bidar, Yad­giri, Kop­pal, Raichur, Bellary.
03	MYSORE	Mysore-Kodagu, Mandya, Has­san, Chama­ra­j­na­gar, Man­ga­lore-Udupi, Chikmagalur,
04	BANGAL0RE	Head Office, Bangalore(North), Bangalore(South), Tumkur, Davan­agere, Chi­tradur­ga, Shi­mo­ga, Kolar, Ram­na­gar, Chickballapura,

NOTE:-Please treat Mysore and Kodagu(Madikeri) as sin­gle Dis­trict so as Man­ga­lore and Udupi as sin­gle District.

Ten­der Ref­er­ence Number	KFCSC/IAO/ADM/2014–15
EMD for each Division	Rs. 20,000/-
Date of publish	16-10-2014
Last date for sub­mis­sion of Bids	31-10-2014, 5.00 P.M
Date/Time of open­ing of Tech­ni­cal Bid.	03-11-2014 11.00 A.M
Date/Time of open­ing of Finan­cial Bid.	10-11-2014 11.00 A.M
Date of interview	14-11-2014 11.00 A.M
Address for communication	Kar­nata­ka Food & Civ­il Sup­plies Cor­po­ra­tion Ltd, No.16/I, Millers Tank Bed Area, Vas­an­thana­gar, Ban­ga­lore-560 052.

Tele­phone No.22200660 / 22096712

Fax: 080–22096555-22096614–22096556

www.kfcsc.com

E‑mail: iao@kfcsc.com

The Detailed Ten­der doc­u­ments can be obtained/downloaded from                   e‑procurement por­tal https://eproc.karnataka.gov.in . The Man­ag­ing Direc­tor, reserves the right to accept or reject any or all bids with­out assign­ing any rea­son whatsoever.

 

                                                                                                Gen­er­al Manager

  

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

(GOVERNMENT OF KARNATAKA UNDERTAKING)

#16/I, Millers tank bed area,

Ban­ga­lore – 560 052. Ph: 080 22096712

No: KFCSC/IAO/ADM/2014–15                                                 Date:16–10-2014

 

SUBJECT: TENDER NOTIFICATION FOR APPOINTMENT OF AUDITING 

                  FIRMS.

SECTION 1

INVITATION FOR BIDS 

1. The Man­ag­ing Direc­tor, KFCSC, Ban­ga­lore invites ten­ders from eli­gi­ble bid­ders, for divi­sion­al wise appoint­ment of audit­ing firms for car­ry­ing out the work of Inter­nal Audit of Dis­trict offices of KFCSC Ltd., The Bid­ders are required to sub­mit details of their capa­bil­i­ty to under­take the ten­der and Under­tak­ings stat­ing that, they shall abide by all the rules and reg­u­la­tions and pay­ment of Audit fee etc., to char­tered Accoun­tants engaged through Audit firms.  All records and doc­u­ments to evi­dence meet­ing the require­ments of the Ten­der con­di­tions, which will be opened first and the sec­ond cov­er con­tain­ing to the price Bid which will be opened only if the Bid­der is found to be qual­i­fied. The Audit firm should quote the audit fee per month/Division and the same will be valid for the peri­od of remain­ing Finan­cial year of 2014–15 and full Finan­cial year of 2015–16 from the date of enter­ing into an agreement.
2. Bids doc­u­ments may be down­loaded from Gov­ern­ment of Kar­nata­ka e‑Procurement web­site, https://eproc.karnataka.gov.in
3. Bids must be accom­pa­nied by EMD of Rs. 20,000/- which would be paid on online through e‑Procurement portal.

Gen­er­al Manager

  

SECTION 2

INSTRUCTIONS TO TENDERERS (ITT)

 

1. SCOPE OF SERVICE:

The bid­der is required to Apply to pro­vide Inter­nal Audi­tors to car­ry-out the audit work as men­tion in Annex­ure-III.  The bid­der shall be liable to com­ply with all the require­ments of laws of land and rules & reg­u­la­tions of KFCSC Limited.

2. ELIGIBILITY CRITERIA.
3. Audit­ing firms should be empan­elled with CAG & should pro­vide A.G

empan­el­ment Number.

2. Audit firms should bid only for Divi­sion-wise and not for District-wise.
3. An audit­ing firm can also apply for more than one Divi­sion sep­a­rate­ly by ful­fill­ing the oth­er cri­te­ria. Even though one audit­ing firm is a suc­cess­ful bid­der in more than 2 divi­sions, they will be appoint­ed to not more than two division.
4. Audit­ing firms should have suf­fi­cient num­ber of Char­tered Accoun­tants to

pro­vide for each dis­trict of the division.

5. Audit firms should ensure that only qual­i­fied & expe­ri­enced Chartered

      Accoun­tants are post­ed as Inter­nal Audi­tors of the district.

6. The Audit­ing firms should take the respon­si­bil­i­ty of replac­ing the  Internal

  Audi­tors of the dis­trict, if the per­for­mance of such audi­tors is not satisfactory.

7. The Audit­ing firms should ensure that dis­trict wise Audit report of the

  con­cerned  divi­sion should be sub­mit­ted in the stip­u­lat­ed time. (Month­ly)

8. Autho­ri­sa­tion let­ter on behalf of the partner/Director to have correspondence

 with the Corporation.

9. The Terms & Conditions/scope of Audit is to be signed and to be enclosed.
10. Divi­sion­al wise audit fees per month should be quoted.
11. G.empanelment reg­is­tra­tion is com­pul­so­ry for Char­tered Accountant.
12. DOCUMENTS COMPRISING THE TECHNICAL BID
13. ICA cer­tifi­cate.
14. PAN Card.
15. Ser­vice Tax Registration
16. Expe­ri­ence Cer­tifi­cate (as per appli­ca­tion):- Expe­ri­ence and past per­for­mance in the exe­cu­tion of sim­i­lar con­tracts if any, pro­vide list of atleast Five (5) Govt Institutions/Companies (Doc­u­ments and per­for­mance cer­tifi­cate from the con­cerned insti­tu­tions to be enclosed)
17. Income Tax paid Cer­tifi­cate:- Income Tax returns filed for the last three finan­cial years.
18. Bal­ance Sheet if it is part­ner­ship firm/company:-Balance Sheet for the last three finan­cial years.
19. Part­ner­ship agreement.
20. Affi­davit for non-con­vic­tion:-Affi­davit from the Com­pa­ny declar­ing that they have not been con­vict­ed for any offence for hav­ing any crim­i­nal cas­es under any act or orders there under regard­ing any con­vic­tion in pre­vi­ous years/present.
21. BID FORM
    • Tech­ni­cal details should be sub­mit­ted along with doc­u­men­tary proof oth­er­wise eval­u­a­tion will be done ignor­ing that item as not avail­able. This for­mat should not be changed in any man­ner. Addition/deletion/alteration of the text will auto­mat­i­cal­ly ren­der the ten­der invalid and there­fore, will be sum­mar­i­ly rejected.
    • Bid­ders shall fur­nish all the doc­u­ments as spec­i­fied in ten­der doc­u­ment. The bid­ders should upload the entire bid doc­u­ments i.e., com­plete ten­der doc­u­ment duly signed and stamped includ­ing all Annex­ure, bid form etc., as accep­tance of all terms and conditions.
    • Audit fees should be quot­ed in the Finan­cial bid for­mat for ren­der­ing ser­vice of audit work (Finan­cial bid) This for­mat should not be changed in any man­ner Additional/deletion/alteration of the text will auto­mat­i­cal­ly ren­der the ten­der invalid and there­fore, will be sum­mar­i­ly rejected.
    • The bid­der is request­ed to exam­ine all instruc­tions, forms, terms and spec­i­fi­ca­tions in the Bid Doc­u­ments, fail­ure to fur­nish all the infor­ma­tion required as per Bid Doc­u­ments or sub­mis­sion of the bids not sub­stan­tial­ly respon­sive to the Bid Doc­u­ment in every respect will be at the bidder’s risk and may result in rejec­tion of the Bid.
    • At any time, pri­or to the date of sub­mis­sion of bid/ KFCSC may, for any rea­son whether at its own ini­tia­tive or in response to a clar­i­fi­ca­tion required by a prospec­tive bid­der, mod­i­fy the bid doc­u­ments by amendments.
    • The amend­ments shall be noti­fied in e‑procurement por­tal and these amend­ments will be bind­ing on them.
    • EMD of unsuc­cess­ful bid­ders shall be returned after the ten­der award­ed and accept­ed by the suc­cess­ful bidder.
    • The Ten­ders will under­go eval­u­a­tion at every stage of pro­cess­ing and any ten­der found at any stage not in con­for­mi­ty with the stip­u­lat­ed ten­der con­di­tions includ­ing specifications/found to have uploaded defec­tive and incom­plete doc­u­ments or found defec­tive will be rejected.
22. BID PRICES
    • The audit firms shall quote the price as per annex­ure attached to bid doc­u­ment. The com­pos­ite price should indi­cate all the types of Tax­es, includ­ing ser­vices Tax etc., as applic­a­ble from time to time.
    • The price quot­ed by the bid­der shall remain fixed dur­ing entire peri­od of Con­tract & shall not be sub­ject to vari­a­tion on any account. A bid sub­mit­ted with an adjustable price quo­ta­tion will be treat­ed as non-respon­sive and rejected.
23. EMD & BANK SECURITY DEPOSIT 
24. The bidder’s shall fur­nish as irrev­o­ca­ble per­for­mance Bank Guar­an­tee for Rs.20,000/- (Rupees Sev­en­ty five thou­sand Only) issued by sched­uled bank which should be valid upto 60 days from the peri­od of com­ple­tion of the con­tract. How­ev­er no inter­est shall be payable on the bank guar­an­tee & the same will be con­vert­ed into per­for­mance secu­ri­ty. The Bank secu­ri­ty deposit is required to pro­tect the KFCSC against risk of bidder’s con­duct which would war­rant the security’s forfeiture.
25. The supplier/contractor can pay the Earnest Mon­ey Deposit (EMD) in the e‑Procurement por­tal using any of the fol­low­ing pay­ment modes:

• Cred­it Card
• Direct Deb­it
• Nation­al Elec­tron­ic Fund Trans­fer (NEFT)
• Over the Counter (OTC)

For details on e‑Payment ser­vices refer to e‑procurement por­tal for more details on the process.

• Any bid not secured in accor­dance with Terms and con­di­tions above

 will be reject­ed by KFCSC as non-responsive.

1. The suc­cess­ful bid­der EMD amount may be for­feit­ed if the bidder

 fails;

1. To sign the contract.
2. The bid secu­ri­ty of unsuc­cess­ful bid­der will be dis­charged / returned as ear­ly as pos­si­ble as but not lat­er than 30 days after the expiry of the peri­od of bid validity.
3. For­mat and Sign­ing of Bid.

Bid­der shall sub­mit the Bid elec­tron­i­cal­ly before the sub­mis­sion date and time pub­lished in e‑procurement portal.

 

1. Dead­line for sub­mis­sion of bids 
   1. Bids must be sub­mit­ted online in the e‑Procurement por­tal by the KFCSC before the noti­fied date and time.
   2. The KFCSC may extend the dead­line for sub­mis­sion of bids by issu­ing an amend­ment, which in case all rights and oblig­a­tions of the KFCSC and the Bid­ders pre­vi­ous­ly sub­ject to the orig­i­nal dead­line will then be sub­ject to the new deadline.

• Late Bids

In online e‑procurement sys­tem, Bid­der shall not be able to sub­mit the bid after the bid sub­mis­sion time and date as the icon or the task in the e‑procurement por­tal will not be available.

• Bid valid­i­ty
  1. The bids shall remain valid for 90 days after the date of open­ing of bids. A bid valid for a short­er peri­od shall be reject­ed as non-responsive.
  2. A bid­der accept­ing the request of KFCSC for an exten­sion to the peri­od of bid valid­i­ty, in excep­tion­al cir­cum­stances, will not be per­mit­ted to mod­i­fy their bid.

1. Process to be confidential 

Infor­ma­tion relat­ing to the exam­i­na­tion, clar­i­fi­ca­tion, eval­u­a­tion, and com­par­i­son of Bids and rec­om­men­da­tions for the award of a con­tract shall not be dis­closed to Bid­ders or any oth­er per­sons not offi­cial­ly con­cerned with such process until the award to the suc­cess­ful Bid­der has been announced. Any effort by the Bid­der to influ­ence the KFC­SC’s pro­cess­ing of Bids or award deci­sions may result in the rejec­tion of their Bid.

1. Clar­i­fi­ca­tion of Bids 

Dur­ing eval­u­a­tion of Bids, KFCSC may, at their dis­cre­tion, ask any Bid­der for clar­i­fi­ca­tion of their Bids, includ­ing break­downs of charges. The request for clar­i­fi­ca­tion and the response shall be in writ­ing or by cable, but no change in the price or sub­stance of the Bid shall be sought, offered, or permitted.

7. FINANCIAL BID:

The bid­der shall quote the rate in the finan­cial bid as per Annexure‑2.

          Note:-                                                                                                  

The Annexure‑I gives appli­ca­tion form and Num­ber of staff (Char­tered Accoun­tants) work­ing under the audit firm. 

Annex­ure-II-Finan­cial Bid.

Annex­ure-III Scope of audit (Dis­trict office & Head Office)

 

8. TENDER EVALUATION

The ten­der sub­mit­ted by the bid­der will be opened by the Ten­der Open­ing Com­mit­tee con­sti­tut­ed under Rule 11 of the “Act”. If the doc­u­ments in tech­ni­cal bid are found to be in order, as spec­i­fied above only then the Finan­i­cal bid will be opened. Incom­plete doc­u­ments in the Tech­ni­cal qual­i­fi­ca­tion will result in rejec­tion of the entire ten­der and the Finani­cial bid. The ‘Pro­cure­ment enti­ty’ after due eval­u­a­tion, will have option to pre­pare item-wise selec­tion in the order of pri­or­i­ty and call upon the Low­est Ten­der­er to fur­nish Secu­ri­ty Deposit and exe­cute the agreement.

The “Pro­cure­ment Enti­ty” before pass­ing the order accept­ing a ten­der may nego­ti­ate with Low­est Tenderer.

In the event of any dis­crep­an­cy in respect to the rates quot­ed, the “Pro­cure­ment enti­ty” reserves the right to accept the low­est rate, at his discretion.

9. AWARD OF CONTRACT

The KFCSC shall con­sid­er place­ment of let­ter of Accep­tance to those bid­ders (in dupli­cate) whose offers have been found accept­able. The bid­ders shall return one copy of the LOA in token of their accep­tance along with the per­for­mance secu­ri­ty with­in three days.

1. KFCSC LTD., RESEVES RIGHT TO ACCEPT ANY BID AND TO REJECT ANY BIDS 

The KFCSC shall not be bound to accept the low­est or any ten­der and reserves to itself the right to accept or reject any bid or to accept whole or a por­tion of ten­der, as it may deem fit, with­out assign­ing any rea­son there­of and with­out incur­ring any lia­bil­i­ty to the affect­ed bidder(s) for the action of KFCSC.

The KFCSC reserves the right to remove any Inter­nal Audi­tors, if his work is not sat­is­fac­to­ry (if audit obser­va­tions are super­fi­cial & reports are not sub­mit­ted on time). And also if the performance/conditions of the work of the audit­ing firm of a par­tic­u­lar divi­sion is not sat­is­fac­to­ry such audit­ing firms will be replaced with L‑2 ten­der­er of the same divi­sion or oth­er divi­sion exist­ing audit­ing firms.

1. SIGNING OF CONTRACT

Sign­ing of Agree­ment shall con­sti­tute the award of con­tract on the bidder.

2. ANNULMENT OF AWARD

Fail­ure of the suc­cess­ful bid­der to com­ply with the require­ment shall con­sti­tute suf­fi­cient ground for the annul­ment of the award and for­fei­ture of the bid secu­ri­ty in which event KFCSC may make the award to any oth­er bid­der at the dis­cre­tion of KFCSC or call for new bids.

3. TERMS OF PAYMENT

Pay­ment will be made at Unit Office of “Pro­cure­ment Enti­ty” after deduct­ing the applic­a­ble Tax­es etc. The pay­ment will be made after sub­mis­sion of that par­tic­u­lar month and receipt of the bill.

Fur­ther, the Dis­trict-wise month­ly audit reports should be sub­mit­ted to the Man­ag­ing Direc­tor, with in next sub­se­quent month.

4. TERMINATION OF CONTRACT

In case of any default by the ser­vice provider and in any of the terms & con­di­tions (whether Gen­er­al, spe­cial statu­to­ry), KFCSC may with­out prej­u­dice to any oth­er right/ rem­e­dy which shall have accrued or shall accrue there­after, ter­mi­nate the con­tract, in whole or in part, by giv­ing one months notice in writ­ing to the ser­vice provider.

All instruc­tions, notice and com­mu­ni­ca­tions etc., under the con­tract giv­en in writ­ing and if sent to the last known place of busi­ness, shall be deemed to be served on the date, even in ordi­nary course of post these would have been deliv­ered to the ser­vice provider.

Notwith­stand­ing any­thing con­tained here­in KFCSC also reserves the right to ter­mi­nate the con­tract at any time or stage dur­ing the peri­od of con­tract, by giv­ing one month notice in writ­ing with­out assign­ing any rea­son and with­out incur­ring any finan­cial lia­bil­i­ty what­so­ev­er to the ser­vice provider.

5. TERMINATION FOR INSOLVENCY 

KFCSC may also give in writ­ing notice and with­out com­pen­sa­tion to the ser­vice provider ter­mi­nate the con­tract if the ser­vice provider becomes unwill­ing, bank­rupt or oth­er­wise insol­vent with­out affect­ing its right of action or rem­e­dy as hirer.

6. PENALTY CLAUSE

The “Pro­cure­ment Enti­ty” reserves the right to can­cel the order with­out any pri­or intimation.

7. ARBITRATION:

In case of any dis­pute includ­ing the inter­pre­ta­tion of any of the Clause/Clauses of the agree­ment the mat­ter shall be referred to a Sole Arbi­tra­tor, who shall be select­ed with mutu­al con­sent of both the Par­ties for adjudication.

The remu­ner­a­tion for the Arbi­tra­tion shall be fixed by the Arbi­tra­tor at his discretion.

8. FORCE MAJEURE 

If any time, dur­ing the con­tin­u­ance of this con­tract, the per­for­mance in whole or in part by either par­ty of any oblig­a­tion under this con­tract is pre­vent­ed or delayed by rea­son of any war, or hos­til­i­ty, acts of the pub­lic ene­my, civ­il com­mo­tion, sab­o­tage, fire, floods, explo­sions, epi­demics, quar­an­tine restric­tions, strikes, lock­outs or act of God (Here­inafter referred to as events) pro­vid­ed notices of hap­pen­ings, of any such even­tu­al­i­ty is giv­en by either part to the oth­er with­in 21 days from the date of occur­rence there­of, nei­ther par­ty shall by rea­son of such event be enti­tled to ter­mi­nate this con­tract nor shall either par­ty have any claim for dam­ages against the oth­er in respect of such no per­for­mance or delay in per­for­mance.  Per­for­mance under the con­tract shall be resumed as soon as prac­ti­ca­ble after which an event may come to an end or cease to exist, and the deci­sion of KFCSC as to whether the sup­plies have been so resumed or not shall be final and con­clu­sive, pro­vid­ed fur­ther that if the per­for­mance in whole or part of any oblig­a­tion under this con­tract is pre­vent­ed or delayed by rea­son of any such even for a peri­od exceed­ing 60 days, either part may, at their option ter­mi­nate the contract.

9. SET OFF (RECOVERY SUM DUE) 

Any sum of mon­ey due and payable to the Ser­vice Provider (includ­ing secu­ri­ty deposit refund­able to him) under this con­tract may be appro­pri­at­ed by KFCSC and set off the same against any claim of KFCSC for pay­ment of a sum of mon­ey aris­ing out of this con­tract or under any oth­er con­tract made by Ser­vice Provider with KFCSC.

In the event said secu­ri­ty deposit/ per­for­mance guar­an­tee being insuf­fi­cient the bal­ance of total amount recov­er­able, as the case may be shall be deduct­ed from any sum of due to the Ser­vice Provider under this or any oth­er con­tract with KFCSC should this amount be insuf­fi­cient to cov­er the said full amount recov­er­able, the Ser­vice Provider shall pay to KFCSC on demand the bal­ance amount, if any, due to KFCSC with­in 30 days of the demand by KFCSC.

If any amount due to the com­pa­ny is so set off against the said secu­ri­ty deposit, the ser­vice provider shall have to make well, the said amount so set off to bring the secu­ri­ty deposit to the orig­i­nal val­ue imme­di­ate­ly by not lat­er than 10 days.

1. OTHER OBLIGATIONS 
2. KFCSC LTD., pri­or to the expiry of the ten­der valid­i­ty peri­od shall noti­fy the bid­der whose ten­der is accept­ed for the award of the con­tract. The Terms of the accept­ed offer shall be incor­po­rat­ed in the accep­tance let­ter issued.
3. Notwith­stand­ing the above KFCSC LTD., serves the right to accept or reject any ten­der and to can­cel the bid­ding process at any time pri­or to the award of the contract.
4. The under­signed reserves the right to select from the can­di­dates pro­posed by the suc­cess­ful bid­der and also the right to ask for replace­ment at any time.
5. The replace­ment shall be giv­en with­in three days and for delay of each day, a penal­ty of Rs.100/- will be levied.
6. TDS shall be made in the bills of suc­cess­ful bidder.
7. Secu­ri­ty deposit will not car­ry any inter­est and will be refund on ces­sa­tion of agreement.

         We agree to the above terms and conditions.

Gen­er­al Manager

                 KFCSC LTD.,

 

 

ANNEXURE‑1

 

APPLICATION FOR APPOINTMENT OF AUDITING FIRMS 

FOR KFCSC, BANGALORE.

 

The Man­ag­ing Director,

Kar­nata­ka Food & Civ­il Sup­plies Cor­po­ra­tion Ltd.,

# 16/I, Millers Tank Bed Area, Vasanthnagar,

BANGALORE-560 052.

Dear Sir,

            We are inter­est­ed to take up Inter­nal Audit work of Dis­trict offices in your esteemed organization.

            I/we request you to include our name as Inter­nal Audit­ing Firm for Divi­sion (Name)…………… We fur­nish here­in below the particulars.

1. Name of the firm and Address

            With Tele­phone and email.

1. Name of the Part­ners. with

Mem­ber­ship No., and PAN No.

1. Year of establishment.

1. Reg­is­tra­tion No. with SIRC, Chennai.

1. Expe­ri­ence of three years out of five

Years as Inter­nal Auditor/Statutory

Audi­tors of any Kar­nata­ka Government

Under tak­ings. (enclose documents)

 

Place:                                                                                                              Sig­na­ture with Seal

Date:

Note:-

The Appli­ca­tion (Hard Copies) should reach to our Head Office on or before                29-10-2014 before 11–00 A.M

  

ANNEXURE-II FINANCIAL BID

 

Finan­cial Bid Should be in form‑B indi­cat­ing rate after going through the scope of Audit

                                      

 SIGNATURE OF THE TENDERER

 

DATE:

ADDRESS:

  

FORM – B (FINANCIAL BID)

 

         We here­by agree to take up the Audit work in your cor­po­ra­tion                  Divi­sion-wise at the rates indi­cat­ed against them MONTHLY for the remain­ing finan­cial peri­od of 2014 to 2015 and for the finan­cial year 2015–16.

 

Peri­od	Amount per Month
2014–15

2015–16 

 

SIGNATURE OF THE TENDERER

                        WITH SEAL.

 

 

ANNEXURE-III

 

KARNATAKA FOOD & CIVIL SUPPLIES CORPORATION Ltd.,

SCOPE OF INTERNAL AUDIT

DISTRICT OFFICE.
01.	Cash Book	Ver­i­fi­ca­tion of receipts and pay­ments clas­si­fi­ca­tion of Heads of Account. Ledger post­ing and Bal­anc­ing of both Ledger and Cash Book.
02.	J.E. Book	Ver­i­fi­ca­tion of JEs with sup­port­ing Documents.
03	Bank Rec­on­cil­i­a­tion	Ver­i­fi­ca­tion of unre­al­ized cheques more than 06 months and late real­iza­tion of D.D’s remit­ted to Bank.
04.	Vouch­er Files	Prop­er main­taince of Vouch­ers with sup­port­ing documents.
05.	Bank Remit­tance	Remit­tances of Sales pro­ceeds to Bank-DD Registers.
06.	Stock Account	Ver­i­fi­ca­tion of Allot­ment of D.C/scheme wise Pur­chas­es and scheme wise Account­ing of stock in Stock Register.
07	Pay­ment of Admn Charges	Ver­i­fi­ca­tion of Admn, charges paid to DC as per cost­ing sheets and prop­er clas­si­fi­ca­tion of stock under respec­tive schemes and price at which it is sold.
08	Books of Forms & Register	Ver­i­fi­ca­tion of prop­er account­ing of Books and Forms purchased/supplied form H.O/got print­ed at unit office and prop­er issue of the same to W.S & R.P.S
09	Assets Reg­is­ter	Main­taince of Assets Reg­is­ter Land and Build­ings etc.,
10	Fur­ni­ture and Fix­ture Register	Main­taince of Fur­ni­ture and Fix­tures Reg­is­ter-Prop­er Valuation.
11	Pay­ment to

Trans­port

Con­trac­torsVer­i­fi­ca­tion of Trans­port con­trac­tors Bills with cha­lan of the quan­ti­ty purchased/lifted along with stock receipts and release orders. Tran­sit shortages/Deduction of TDS & Remit­tance of TDS with­in due date.12Purchase Reg­is­ter­Prop­er book­ing of purchase/payment adjust­ed as per cost­ing sheet with ref­er­ence to Invoice/R.Os and cross check to the stock reg­is­ter and JE’s pro­posed R.O Reg­is­ter to be checked spe­cial­ly to ver­i­fy that the R.O Quan­ti­ty is received before tak­ing new R.O.13Sales Reg­is­ter­Ver­i­fi­ca­tion of quan­ti­ty sold with ref­er­ence to schemes under which it was pur­chased and sold with ref­er­ence to cost­ing sheet prop­er    account­ing of sales pro­ceeds to cash book and sales JE pro­posed with ref­er­ence to Stock Book.14Monthly Stock

Ver­i­fi­ca­tion Reports.The clos­ing bal­ance as per Phys­i­cal stock ver­i­fi­ca­tion should agree with that of the open­ing Bal­ance of par­al­lel stock Book main­tained at office.15Differential Cost­The claim’s made to Govt towards Dif­fer­en­tial cost in accor­dance with the purchases/sales and cost­ing sheets.  JEs pro­posed. Because of sub­sidy (to con­sumers) pro­vid­ed the Govt of Kar­nata­ka for EBPL Cat­e­go­ry, Rice/Wheat is sold at BPL Price itself and the sub­sidy, por­tion is claimed month­ly from Govt of Kar­nata­ka as Dif­fer­ence in cost.16Transportation

ChargesT.C Claimed to Govt in accor­dance with the Purchases/Sales and Cost­ing Sheets.  JE’s pro­posed Trans­port charges are claimed for reim­burse­ment at Govt rates in respect of Rice/Wheat. That of sug­ar is includ­ed in the cost­ing sheet.17Advance Reg­is­ter­Re­view of Advance made/adjustments made and Bal­ance in accor­dance with pro­vi­sions, Any advance long stand­ing with out adjust­ment, staff, Govt, and oth­er par­ties A/c to be reviewed.18Log BookProp­er main­tains of log book account of fuel & repairs, Tour Diary of DM’s.19Service Reg­is­ter­Ver­i­fi­ca­tion of ser­vices reg­is­ter, main­taince of leave account pay scale/increments sanc­tioned etc.,20Trial Bal­anceV­er­i­fi­ca­tion of month­ly quarterly/yearly tri­al bal­ance /consolidated tri­al balance.21Verification of

AccountsVer­i­fi­ca­tion of quar­ter­ly half yearly/annual accounts. Prop­er agree­ment of pur­chas­es & sales with that of Finance stock state­ments with ref­er­ence to admin­is­tra­tive charges paid/Different cost claimed etc.,22Deposit Reg­is­ter­Prop­er main­tainance of Deposit register.23Sundry

Creditors/Sundry

Debtors Registers.Verification of sundry cred­i­tors and sundry debtors reg­is­ter and entries post­ed regularly.24Bank Interest

Reg­is­ter­Ver­i­fi­ca­tion of Bank Inter­est charged by the Banker on Cash Cred­it A/c. Prop­er post­ing of C.B date to day as per cash boodk/Bank statement.25Telephone Reg­is­ter­Main­taince of Tele­phone reg­is­ter & entries made reg­u­lar­ly on day to day basis.26Cash Flow State­mentVer­i­fi­ca­tion of Cash Flow state­ment and via­bil­i­ty of the unit office.27Over and above T.C

Pay­ment reg­is­ter­Ver­i­fi­ca­tion of over and above T.C pay­ment made to Trans­port contractor.28Daily Sales Abstract

Acknowl­edg­ment

Reg­is­ter­Ver­i­fi­ca­tion of acknowledgment/receipt passed at unit office for receipt of D.S.A’s whole­sale points and with that of the bank remit­tance reg­is­ter ver­i­fy whether delay in remit­tance at unit office or delay in send­ing the DSA from the depot.29MisappropriationIf there is any mis­ap­pro­pri­a­tion either in Dis­trict Office, whole­sale points, retail points or in any oth­er branch/transaction should be at the ear­li­est and to be report­ed to the Chief Executive.30GeneralWhatever the Accoun­tant Gen­er­als and Statu­to­ry Audi­tors will check with KFCSC will also be the pri­ma­ry duties of the Inter­nal Audi­tors of the Audit­ing firms.

Com­pli­ance with regard to var­i­ous approvals, orders or instruc­tions giv­en from Head Office and Cost­ing Sheet and/or G.O copies sent from Head Office or received direct­ly from Gov­ern­ment of Kar­nata­ka from time to time.

Com­pli­ance with the Tax Audit point and to report any devi­a­tion thereon.

Peri­od­i­cal rec­on­cil­i­a­tion of –

Funds Trans­fer from Head Office to Dis­tricts and Vice- Ver­sa along with inter Dis­tricts, intra-Dis­tricts transfers.

Cred­i­tor for recov­er­ies – JE pro­posed from Head office whether JEs are respond­ed prop­er­ly or not.

Ensur­ing com­pli­ance for account­ing com­pli­ance for account­ing & audit prin­ci­ples, account­ing and stan­dards and inter­nal audit con­trol sys­tems includ­ing sug­ges­tions for improvement.

Ver­i­fy­ing com­pli­ance to var­i­ous statu­to­ry pro­vi­sions applic­a­ble to the Corporation.

1. WHOLESALE POINTS:-

01Stock Book Reg­is­ter­Ver­i­fi­ca­tion of stock A/c at Whole­sale points main­tained as per the allot­ment (Scheme­wise).  Whether all Stock Receipts are account­ed on day to day basis and DSA’s charged off accord­ing­ly, Inter­nal Stock Trans­fers with prop­er order.  Stock Trans­fer out wards with prop­er orders or not.02Stock Receipt Book­sWhether the stock receipts are passed on the day of receipt of stock with ref­er­ence to the Truck chits/invoice of the sup­pli­ers.  Whether all the receipt are sup­port­ed by the TC/Invoice (which is to be past­ed to stock receipt) stock receipts are passed to that of Inter­nal Stock Transfer.03Passing of cash cum

 

deliv­ery notesWhether the CCD’s are passed to each and every deliv­ery or not, and filled all the columns of the CCD’s are passed against the pay­ment or not, with prop­er rate (as per cost­ing sheet) and scheme vari­ety are men­tioned or not in every CCD to be verified.04Daily Sales Abstract­Whether all the CCD are account­ed to DSA, seri­al­ly or not. If any CCD’s miss­ing to be con­firmed, whether it is can­celed with out the copies of CCD’s.  The total of the quan­ti­ty col­umn mul­ti­plied by the rate should agreed with the total of DD’s and cash receipt.05Acknowledgment of sub­mis­sion of DSA to the Dis­trict officeThe details of sub­mis­sion of DSA to the Dis­trict Office along with DD and cash to the office with in the stip­u­lat­ed time to time verified.06Maintenance of Fur­ni­ture and office equip­ment and Books form register.The Account of Fur­ni­ture and Fix­tures and Bill Books oth­er forms obtained for Dis­trict office/Purchased should be record­ed properly.

Name of the Whole­sale Point……………………………

Name of the Depot Manager……………………………

III.   RETAIL POINTS.
01	Stock Books	Whether stock list­ed from whole­sale point’s pur­chased are prop­er­ly account­ed or not in to the stock Reg­is­ter is to be ver­i­fied and day to day sales are prop­er­ly post­ed to stock book with ref­er­ence to the day bood or retail point.
02	Day Book	Whether card wise post­ings are made in the day book or not are to be ver­i­fied and scale of issue is prop­er­ly fol­lowed or not is also to be verified.
03	Stock Receipt Book	Whether stock receipts passed to all the stock’s received or not to be verified.
04	Emp­ty Gun­ny A/c	Emp­ty Gun­ny A/c is to be ver­i­fied with ref­er­ence to the stock receipts.
05	Bank Remit­tance	Whether cash is remit­ted to Bank dai­ly or not to be ver­i­fied with the pre­scribed chal­lan sup­plied from the Dis­trict Office.
06	Ver­i­fi­ca­tion of Month­ly Sales Abstract	Whether the Month­ly sales abstracts are prop­er­ly filled indi­cat­ing rates at which sold & ver­i­fy amount remit­ted to Bank with ref­er­ence to Bank state­ment and ver­i­fy whether stock receipts are passed prop­er­ly or not on day to day basis

 

 Scope of Audit for Head Office

Intro­duc­tions:

Kar­nata­ka Food & Civ­il Sup­plies Cor­po­ra­tion Ltd., is a Gov­ern­ment of Kar­nata­ka, Pub­lic Sec­tor under­tak­ing reg­is­tered under the Com­pa­nies Act 1956, is hav­ing its Head Office at Ban­ga­lore and 28 Dis­trict Offices in the state.  It is pro­posed to set up an effi­cient Inter­nal Audit func­tion which would help the Com­pa­ny to com­ply with­in form and sub­stance all its prices/ procedures/guidelines   pre­scribed by var­i­ous statutes and sup­port­ing agencies.

Objec­tive:

            The objec­tive of the Inter­nal Audit func­tions is to ensure that the Inter­nal con­trol system/measures are ade­quate. The Inter­nal Audit would be an appraisal func­tion estab­lished to exam­ine, eval­u­ate and mon­i­tor the ade­qua­cy and effec­tive­ness of account­ing and inter­nal con­trol functions.

Scope of work:

 The scope of work of the Inter­nal Auditor’s func­tion will evolve with the growth of orga­ni­za­tion. How­ev­er at present the func­tions of the Inter­nal Audi­tor are broad­ly designed to cater to the needs of the man­age­ment so as to ensure the following:

1. All the guide­lines and admin­is­tra­tive cir­cu­lars giv­en by the Head Office are        fol­lowed by the sub­or­di­nate staff and the extent of adher­ence of such poli­cies is to be reported.
2. To ensure that the account­ing sys­tem is appro­pri­ate and has been fol­lowed efficiently.
3. Imple­men­ta­tion of ade­quate Inter­nal Con­trols in the Com­pa­ny to safe­guard the assets to ensure pro­pri­ety of expen­di­ture and to exer­cise con­trol on payments.
4. Ver­i­fi­ca­tion of Bank Rec­on­cil­i­a­tion State­ment and action tak­en on out­stand­ing items are done if any.
5. Ver­i­fi­ca­tion of com­pli­ance with statu­to­ry deduc­tion and their remit­tance to appro­pri­ate authorities.
6. Expen­di­ture is made with due regard to econ­o­my, effi­cien­cy and cost and effectiveness.
7. Ver­i­fi­ca­tion of var­i­ous books and statu­to­ry records main­tained at Head Office.
8. All laws includ­ing reg­u­la­tions and oth­er inter­nal require­ments and man­age­ment poli­cies and direc­tions / guide­lines applic­a­ble to the Cor­po­ra­tion are being com­plied with.
9. What­ev­er the Accoun­tant General’s and stat­u­ary audi­tors will check with KFCSC will also be the pri­ma­ry duties of the Inter­nal Audi­tors of the audit­ing firms.

1. In order to effi­cient­ly car­ry­out their oblig­a­tions and pro­vide assur­ance to the

  man­age­ment, the inter­nal audi­tors of the com­pa­ny shall

1. Exam­ine the finan­cial and oper­a­tional activ­i­ties of the company.
2. Under­take detailed test­ing of bal­ances trans­ac­tions and procedures.
3. Phys­i­cal­ly ver­i­fy assets that are created.
4. Iden­ti­fy, clas­si­fy and report such infor­ma­tion that may be in devi­a­tion with any set of prac­tices, statu­to­ry require­ment and man­age­ment directions/assessments.
5. To ver­i­fy the assess­ment orders of Sales Tax, Ser­vice Tax, Income Tax and oth­er author­i­ties and report the sta­tus of such cases.

1. Com­ments on the account­ing records, sys­tem and con­trols that were examined

dur­ing the course of Inter­nal Audit to iden­ti­fy the defi­cien­cies    and weak­ness in the sys­tem and make rec­om­men­da­tions to improve them and also sug­gest new sys­tem where required.

1. High­light the mis­takes that are mate­r­i­al and have sig­nif­i­cant impact

on the per­for­mance of the Company.

1. To help the man­age­ment in oth­er areas of finan­cial and accounts

mat­ters when required.

1. To audit any oth­er mat­ter as assigned by the man­age­ment time to

time.

2. PRE AUDIT:
   1. Review of files from the var­i­ous func­tion­al depart­ments involv­ing financial

            commitment;

1. II) Review of all agree­ments, con­tracts, etc., to see that these are with­in the frame work of legal require­ments and meet var­i­ous statu­to­ry require­ments. These func­tions have to be car­ried out before they are sent to approval of authorities.

• Pre-audit of all finan­cial trans­ac­tions which are above Rs.10000/-.

1. Review of finan­cial state­ments pre­pared by the Cor­po­ra­tion for sub­mis­sion to the Board, Banks etc.,
2. Ver­i­fy­ing all forms and reports to ensure that statu­to­ry for­mal­i­ties as required under the Income Tax and Sales Tax laws and oth­er laws are being com­plied with;
3. To advise the Cor­po­ra­tion in respect of com­pli­ance to var­i­ous statutes applic­a­ble to the Cor­po­ra­tion and also applic­a­ble as per Account­ing Stan­dards of the Insti­tute of Char­tered Accoun­tants of India.
4. POST AUDIT:

Ver­i­fi­ca­tion of quar­ter­ly accounts with final accounts sub­mit­ted by dis­trict    units and con­sol­i­dat­ed final accounts pre­pared at Head Office before sub­mis­sion to Board for approval.

4. OTHERS:

1. Inter­nal Audi­tors will be required to car­ry out any oth­er assign­ment giv­en by The Man­ag­ing Direc­tor form­ing part of the scope of work out­lined above      includ­ing advice on relat­ed issues.
2. Peri­od­i­cal review cov­er­ing at least one Dis­trict Office/Depot every month. This is not only as a coun­tercheck to ensure that Inter­nal Audit at the Dis­trict Offices/Depots is being car­ried out in line with the require­ment but also to detect any leak­age of rev­enue that might have escaped the atten­tion of the inter­nal audi­tors at the dis­trict offices/depots;

The inter­nal audit should cov­er the fol­low­ing sections.

1. Finance Section.& Accounts Section
2. Mar­ket­ing Section.
3. Admin­is­tra­tion Section.
4. Pro­cure­ment Sec­tion, Trans­porta­tion Section.
5. Com­pa­ny Secretary’s Section
6. Inter­nal Audit Section.
7. IT Section/Fist Section

                                                                                         Gen­er­al Manager