Empanelment of CA Firm for Concurrent Audit of The Tamil Nadu Industrial Investment Corporation Limited

1. Introduction

TIIC is the Premier State Level Financial Institution established way back in 1949in the Country to faster Industrial Development in the State of Tamilnadu. It plays the catalyst foster role of Development Financial Institution to extend  financial assistance to the MSME TIIC, since its inception, has been instrumental to help more than One lakh

Entrepreneurs to realize their dream of setting up their own enterprises.  Further ,it plays vital role in meeting the objectives  of State Government to have balanced  growth of all regions and employment generation through the industries / service enterprises   financed by the Corporation. Industries,  Service Sector and Large Scale Industries apart from nurturing the first generation entrepreneurs.

TIIC has been serving the Micro, Small, and Medium enterprises, which account for 90% of the total assistance, for more than 70 years with several financial products viz. Term Loan, Working Capital Loan, Equipment Finance, Transport Loan, Bill Financing, etc. Loan, Bill Financing, etc.

As of Feb 2022, TIIC has 6 Regional Offices and 25 Branch offices across Tamil Nadu with the Registered Office in Chennai.

TIIC intends to ensure the following through the proposed (Concurrent) Audit of BOs:

a) To verify how far the Internal control systems and procedures are adhered to in various areas of operations of the Corporation.

b) To make analysis of the quality of the Corporation’s assets and the effectiveness of control system

c) To evaluate the adequacy and effectiveness of Risk management, internal control systems and procedures

d) To identify the potential High Risk areas and to suggest risk mitigates

e) To give a fair view on the perceived risk perception of the auditee offices

TIIC invites interested Tenderer to submit their technical and financial bids under TWO cover system for the Quality and Cost-based Selection (QCBS)  fo “Undertaking (Concurrent) Audit of Operations of branches of  TIIC” in accordance with the scope of work, conditions and manner prescribed in this Request fo Proposal (RfP)  document.

2. Broad Scope of Services for the (Concurrent) Auditor

2.1 Objective:

The main objective of Concurrent cum Internal Audit are :

a) To verify how far the Internal control systems and procedures are adhered to in various areas of operations of the Corporation.

b) To make analysis of the quality of the Corporation’s assets and the effectiveness of control system

c) To evaluate the adequacy and effectiveness of Risk management, internal control systems and procedures

d) To identify the potential High Risk areas and to suggest risk mitigants

e) To give a fair view on the perceived risk perception of the auditee offices

3. Project Objective and Scope of audit of TIIC’s Branches

The functions of TIIC’s Branch Office(s) include credit dispensation under various loan schemes and other day to day operations of the Corporation. The selected Chartered Accountant Firms / LLP/ Companies would undertake (concurrent) audit of operations of the Branch (es) on daily / regular basis and based on their findings also regularly suggest measures to improve the functioning of operations of Branches of TIIC. Assignment would also include verification and confirmation on the adequacy of internal controls and IT system for sustaining operations. The staff deputed by the firm / LLP / Company OF Chartered Accountants for carrying out the audit should be qualified and experienced in the area of work. The objective and scope of the Concurrent Audit to be undertaken in the above branches are as under:

A. Objective of Audit:

The main objectives of the audit are as follows:

i. To supplement the efforts of the Corporation in carrying out simultaneous internal checks.

ii. To reduce the interval between transactions and its independent verification.

iii. To verify whether the system and procedures has been properly complied with and implemented in the Corporation.

iv. To perform substantive checking of various areas of the TIIC’s operations and to make rectification of the deficiencies in the earliest possible time.

v. To detect and arrest revenue leakage, immediately.

vi. To bring an ongoing improvement in the standard of internal controls and processes by identifying areas of weaknesses & deficiencies and energizing the process of rectifications.

vii. To give advisory opinion in the areas of operations of the Corporation, a and when it is necessary.

B. Scope for all Term Loans / Bill Finance

i. Whether the transactions or decisions are within the policy parameters laid down by the Corporation.

ii. Sanction and Disbursement of loans & advances are within the policy parameters laid down by the Corporation. All the loan disbursements are to be checked / verified by the concurrent auditors before actual disbursements and all the disbursement notes need to be signed by the concurrent auditors.

iii. Verify whether pre-sanction/pre-disbursement/post-disbursement visits are undertaken and reports are available on record

iv. Sanctions / Disbursements are within the delegated authority.

v. Sanctions / Disbursements do not violate the instructions or policy prescriptions of RBI / SIDBI / other regulators.

vi. Compliance to RBI guidelines relating to defaulters list / caution advice /CIBIL list / fraudulent borrowers list, KYC / AML, etc. is done satisfactorily.

vii. DoP (Delegation of Power) has been exercised properly and Post Sanction Reporting, wherever applicable, is sent to Post Sanction Reporting Authority.

viii. Verify whether Legal clearance certificate has been issued by the Branch

2. Qualification Criteria

Tenderer must read carefully the minimum conditions of eligibility (the “Conditions of Eligibility”) provided herein. Proposals of only those Tenderers who satisfy the Conditions of Eligibility will be considered for technical evaluation.

3.(a) Eligibility Criteria

Tenderer must read carefully the minimum conditions of eligibility (The Conditions of Eligibility) provided therein. Proposals of only those Tenderers who satisfy the conditions of eligibility will be considered for Technical evaluation.

i. Tenderer should have Minimum 3 years of branch audit / concurrent audit experience in Financial Institutions / Public Sector Banks, mainly in the area of credit dispensation-knowledge & experience in carrying out audit works and other day to day operations (with documentary proof for the award and completion of the assignment).

ii. Tenderer should be a Partnership firm / LLP / company of Chartered Accountants where partners / directors are CAs and should have valid registration Certificate of Practice from ICAI (proof of registration to be furnished).

Note:
Tenderer should have suitable Infrastructural facilities, including office set up, adequate manpower, which are specialized in the area of audit of branch operations, mainly in the area of credit dispensation and other day-to-day operations of the Corporation. Competence and qualification of key professional staff, which shall carry out the assignment in a time bound manner, Particulars about the firm / LLP/ company, including details of partners/directors, their qualifications and experience to be furnished.

iv Tenderer should have regular set-up, either head office or full-fledged branch offices, at respective locations (locally) of TIIC branches (which will be subject to field verification by the TIIC; if found to be false, the tender submitted by the said firm will be summarily rejected and the next CA firm in the reserve list will be considered).

V Tenderer shall have annual turnover not less than Rs.20.00 lakhs as on 31.03.2020and experience to be furnished.

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