Empanelment of CA Firm for Internal Audit of Madhya Pradesh Power Management Company Limited

Introduction & Background

M.P. Power Management Company Limited (MPPMCL) is the holding company for the three electricity distribution companies in the state of MP. These distribution Companies are: Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited (MPMKVVCL) at Bhopal, Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Limited (MPPKVVCL) at Jabalpur and Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited (MPPKVVCL) at Indore. Apart from these, two other subsidiaries namely STPCL (Shahpura Thermal Power Co. Ltd) and BTPCL (Bansagar Thermal Power Co. Ltd) do also exists. The Company is incorporated under the Companies Act, 1956 and has its registered office at Shakti Bhawan, Rampur, Jabalpur (M.P.), 482008 while it has a Regional Office, at E-4, Arera Colony, (Opposite Bhojpur Club), Bhopal- 462023. The Company has been vested with the function of power procurement for the three distribution companies. The scope of work of M.P. Power Management Company Limited (hereinafter referred to as “MPPMCL” or “the Company”) includes: (i) Purchase of electricity from Central / State Sector and other sources as per policies and directive of the Govt of M.P.(ii) Sale of electricity to Distribution Companies of M P and Others (iii) Compliance of various provisions, regulations, notifications, clarification, etc notified or issued by Ministry of Power (MoP)/ Madhya Pradesh Electricity Regulatory Commission (MPERC) / Central Electricity Regulatory Commission (CERC) etc. (iv) Maintain cash flow mechanism between MPPMCL and all the three DISCOM as per GoMP notification. The Company desires to engage a reputed Chartered Accountant firm or Cost Accountant Firm (hereinafter also referred to as “the Firm”) as Internal Auditor for scrutiny, assistance and advise on financial book keeping, preparation of financial statements, compliance of statutory provisions with regard to Ind-AS and all applicable law relating to taxation & accounting etc.

Eligibility Criteria

i. The Firm must be in operation for at least ten ( 10 ) years, with its Head Quarter or Branch office located in Madhya Pradesh.

ii. The Firm must be registered with CAG and in case of Chartered Accountant Firm and have at least one DISA/CISA qualified Chartered Accountant whereas for Cost and Management accountant firm they must have at least one CMA having diploma in ISAC.

iii. The firm must have at least three Partners out of which at least one partner should be FCA/FCMA & at least one partner should have knowledge of Ind-AS.

iv. The firm must undertake to deploy at least one CA/CMA having experience of audit of at least 5 years and having knowledge of Ind-AS and two experienced staff (each with minimum 2 years’ experience of audit).

v. The firm must have experience in Audit of Accounts of Public Sector Undertaking (State or Central) for a period of 5 years. A certificate duly supported with relevant documents such as copies of appointment order shall also be furnished.

vi. The Firm should have earning of not less than Rs. 30 Lakhs as Annual fees from audit services in FY 2019-20 & 2020-21 for each Financial year.

vii. There should not be any Legal suit/Criminal case pending or contemplated against the Firm on the grounds of turpitude or for violation of any of the law in force.

viii. To be qualified for appointment, the bidder’s shall provide sufficient & necessary evidence to the company, satisfaction of MPPMCL regarding capacity of firm and adequacy of resources to carry out the contract effectively. Bids shall include the following information Copies of the original documents defining the constitution or the legal status, place of registration and principal place of business, Written Power Of Attorney of the signatory of the Bid to commit the Bidder Description of the resources available to carry out the proposed job Qualification and experience of all the personnel proposed for carrying out the work.

ix. The audit firm must have adequate staff for carrying out the work on concurrent basis, (if, directed so). The bidders shall have to submit an undertaking on non-judicial stamp paper of requisite value, as per Annexure-VII, to the effect that the audit firm shall deploy sufficient strength of the staff to carry out the audit on concurrent basis, in case work is allotted to them.(x) The firm should not have been debarred / blacklisted by any department of the State or Union Government or any Government Company or its wholly owned subsidiary. An undertaking to this effect as per Annexure VI shall have to be furnished. The bid document which contains the supporting documents related to experience of Audit of Accounts of Public Sector Undertaking (State or Central), should be furnished and must contain the name of Company. It should also be noted that the bid document should be numbered and should contain pointwise index for the same.

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