Empanelment of CA Firm for Internal Audit of Tamil Nadu Infrastructure Fund Management Corporation Limited

Tamil Nadu Infrastructure Fund Management Corporation Limited (TNIFMC) is an Asset Management Company promoted by Tamil Nadu Infrastructure Development Board (TNIDB), a Statutory Board of the Government of Tamil Nadu. TNIFMC shall launch and manage new financial vehicles registered with Securities Exchange Board of India (SEBI), including Alternative Investment Funds (AIFs), Infrastructure Debt Funds (IDF) and Infrastructure Investment Trusts (InvIT). It is the first of its kind promoted by a State in India.

Scope of Work

The successful bidder shall provide the following services:

i. Conducting an Internal Audit of TNIFMC for three years, viz. FY2022-23, FY2023-24, and FY2024-25, in accordance with the accounting principles generally accepted in India, including the accounting standards prescribed by the Institute of Chartered Accountants of India and relevant SEBI regulations applicable for Asset Management Companies.

ii. Expressing an opinion on whether the financial statements of TNIFMC are prepared, in all material respects, in accordance with the applicable financial reporting standards and frameworks and whether TNIFMC has maintained proper books of accounts

iii. Reviewing and evaluating the internal control and risk management system of TNIFMC and advising the management on adequacy/effectiveness of the system, and advising on actions to be taken for its improvement.

iv. Reviewing the adequacy including security aspects of Information Systems of TNIFMC and related infrastructure.

v. Reviewing the cash/fund position and manner of deployment of surplus fund.

vi. Reviewing the Investment Management Systems & Process.

vii. Reviewing the Investment Risk Management Systems & Process.

viii. Reviewing the adherence of procurement policies and procedures.

ix. Reviewing the compliances with the provisions of the relevant legal and regulatory framework such as Companies Act, GST Act, Income Tax Act, SEBI (AIF) regulations, etc., covering all aspects.

x. Providing any other value-addition services consistent with the audit of TNIFMC.

Timelines of Deliverables:

The Internal Audit shall be conducted and the report put up to Management on a quarterly basis for presenting to the Audit Committee.

Qualification Criteria

The minimum criteria for the Internal Auditor responding to this “Request for Proposal”, is that

1. The Firm must be registered with The Institute of Chartered Accountants of India and also, must be active in the empanelment with the office of Comptroller & Auditor General of India (CAG). Copy of documentary evidence with regard to the registration with ICAI and empanelment order (last order of empanelment) issued by C&AG to be submitted.

2. They should have carried out Internal Audit assignments for a minimum of 5 corporate clients with significant turnover or capital including clients in the BFSI sectors during the last 3 years.

3. The Auditors should have also carried out statutory Audit for a minimum of 10 corporate clients and should have carried out Statutory audits for at least 3 PSUs during the last 3 years and it should include the Central Audit of at least one PSU bank.

4. In addition, the Auditors should have in their employment or as full-time partners 5 qualified CAs with a cumulative experience of 50 Man years. They should also have demonstrated expertise in auditing IT systems and should be familiar with Tally software used in our company.

5. The experience of Internal Audit of a Fund management company is desirable.

6. The firm should have an annual turnover of Rs.50 lakhs or more in each of the previous three years (i.e., F.Y.2018-19, 2019-20 and 2020-21). Copy of CA Certificate/ audited balance sheet and profit and loss account for these financial years to be submitted.

Requirement to act as Internal Auditor

The Auditors are expected to carry out Internal Audit as per the professional standards of ICAI. They would be reporting to the Audit Committee of their plans and reports.

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