Empanelment of CA firm for Internal Audit of The Cotton Corporation of India Ltd.

Empanelment of CA firm for Internal Audit of The Cotton Corporation of India Ltd.

Sushmita Goswami | Jan 12, 2022 |

Empanelment of CA firm for Internal Audit of The Cotton Corporation of India Ltd.

Introduction

The Cotton Corporation of India Ltd. is a Government of India undertaking under administrative control of Ministry of Textiles. As per mandate given by the Govt. of India, the Corporation is a nodal agency to undertake Minimum Support Price (MSP) operations without any quantitative limit as and when the prices of raw cotton touch to the support price announced by the Govt. of India. In case the prices of raw cotton are above support price, the Corporation undertakes Commercial Purchase (CP) operations at its own risk and cost.

Scope of Work

1. At the Branch level:

The various functions, roles and duties at branch level are broadly defined as under

a) Maintenance of proper records & registers

  •  To verify that all the records, registers and books of accounts are maintained properly and are up to date in ERP.
  • The records are retained as per prescribed retention schedule.

b) Purchases:

  • In case of MSP Operations, the purchases are made as per MSP guidelines and proper deductions are made towards below FAQ parameters as per MSP norms.
    All the deductions are recorded on the back of bidding slips/takpatti.
  • In case of Commercial operations purchases are made within ceiling given by the HO.
  • The average rate of kapas tally with that of DPR. The guidelines on “Standardization of purchase procedure and documentations for purchase payments” are implemented. APMC has certified the identity of the farmer and
    consolidated Certificate is obtained from the APMC, gate-pass has been issued by the APMC/CCI for shifting of kapas from Mandi to Factory, Certificate of ginning entry/receipt of kapas duly certified by the factory owner/authorized representative of the factory, kapas is weighed in the market yard and the weighment slip is duly issued by APMC and is duly signed by APMC, CCI and the farmer, test weighment has been carried out by CCI representative in the factory. Proforma expenses are verified.
  • Kapas purchase payments are released either through RTGS/cross Account Payee Cheques only.
  • Proper registers including bill inward registers are maintained.
  • Private godowns are hired after obtaining HO approval and following usual tender procedure.

c) Sales

  • FP Bales contracts are raised as per HO sales confirmation.
  • Signed contracts, initial deposits against FP Bales, Exports, Cotton Seed, Misc. items are received from the buyers promptly.
  • delivery orders are issued after receipt of full payment including carrying charges
  • Letter of Credit (L/C)/ Bank Guarantee (BG) are opened as per CCI standard format and documents against L/C/BG are submitted to bank/dispatched to coordinating branches in time. The payments are realized from the banks in time.
  • Uplifted position of bales/cotton seed is reviewed from time to time and advance CC is received against uplifted stocks wherever applicable.
  • The invoices have been raised properly and as per contract terms. The debit/credit notes are raised simultaneously with invoices.
    Dues under MOU, Debtors and buyers’ accounts are reviewed periodically.
  • Shortages between press to delivery weight and to quantify the losses, in abnormal cases.

d) Insurance

  • The Insurance business is allocated to various Insurance companies after following proper tendering process.
  • Adequate advance deposit is maintained with insurance companies.
  • Assets/stocks situated at branches/centres/godowns are properly and adequately insured for various risks as per HO guidelines.
  • The policies are received in time and as per advice issued by Centres.
  • Refunds on cancellation/reduction of policies are received in time.
  • Insurance claims, if any, are timely submitted to the concerned Insurance Company and settled in time.
  • Insurance policy register is maintained up to date.

2) Visit to the procurement Centres/APMCs/Godowns etc

During the procurement operations, internal auditor makes frequent visits to the centres/godowns to check and verify the operations of the centres and submit their visit report immediately to the branch under copy to Head Office (HO). Looking to the seasonal nature of operations the internal audit mainly concentrates on field operations during procurement operations. They carry out frequent visits to various ginning and pressing factories, APMCs, Godowns etc. and submit the tour reports to the branch head for necessary action under copy to Head Office. The Head Office has issued the guidelines from time to time. However, the scope of the audit during centres visit is broadly defined as under:-

  • It is ensure that the kapas purchase operations are carried out in the regulated market yards.
  • The agreements for transportation of kapas from market yards to the factory, transportation of bales to godowns are duly executed after following the usual tender process.
  • The market fees are paid to the APMCs within stipulated time.
  • The Kapas purchases are made as per MSP guidelines (in case of MSP operations) and standard procedure for procurement and documentations are strictly followed at all the centres. The necessary deductions such as excessive moisture, micron Aire values etc are made from MSP price of kapas as per FAQ parameters fixed by the government and duly recoded on bidding slips/bills. The kapas purchase bills along with necessary APMC and factory certificates are submitted to the branch promptly for release of kapas purchase payments to the cotton farmers
  • In case of commercial operations, the purchases are made within the ceiling provided by head office.
  • All the centres/godowns are visited during the cotton season.
  • The Standard Operating Procedures (SOP) for prevention and control of fire incidents are followed at all the G&P Factories and godowns. The proper follow-ups on the observations made during the visits are made.
  • The record of petty impress and vouchers of various expenses are maintained properly and serially at the centres.

3. No. of Visits to Branches, Centres and Godowns:

i. In respect of branches i.e Sriganganagar, Bhatinda, Bhilwara, Sirsa, Hubli, Rayagada and Kalamboli the visits should be as under:

  • Visit to branch should be at least for 10 man days in a month.
  • Visit at least 4 centres/Factories/godowns in a month.

ii. In respect of branches i.e. Akola, Aurangabad, Adilabad, Guntur, Mahabubnagar, Warangal, Ahmedabad, Rajkot and Indore the visits should be as under:

  • Visit to branch should be at least for 12 man days in a month.
  • Visit at least 6 centres/Factories/godowns in a month.

iii. A certificate of visits to branch, centres, Factories/Godown duly certified by branch head is required to be attached with the monthly Internal Audit Report.

The above functions, role and duties are illustrative and not exhaustive.

General Terms and conditions

1. The Cotton Corporation of India Limited shall not be responsible for any expense incurred by bidders in connection with the preparation and delivery of their bids, site visit, participating in the discussion and other expenses incurred during the bidding process.

2. Evaluation of technical Bid-I shall be as per eligibility criteria and financial Bid of the tenderer shall be opened only if it qualifies the technical Bid-I .

3. Earnest Money deposit amounting to Rs. 5,000/- (Rupees five thousand only) in the form of Crossed Demand Draft/Pay Order drawn on any scheduled banks in favor of The Cotton Corporation of India ltd., payable at Aurangabad must accompany the Technical Bid-I.

4. The EMD of Rs 5,000/- of the successful Bidder shall be released after successful completion of work allotted.

5. Minimum monthly Audit Fee:

a. In respect of branches i.e. Sriganganagar, Bhatinda, Bhilwara, Sirsa, Hubli, Rayagada and Kalamboli the minimum audit fee will be Rs. 10,000/- (excluding applicable Taxes).

b. In respect of branches i.e Akola, Aurangabad, Adilabad, Guntur, Mahabubnagar, Warangal, Ahmedabad, Rajkot and Indore the minimum audit fee will be Rs. 15,000/-(excluding applicable Taxes).

c. The fee should be quoted is inclusive of TA/DA/Boarding/Lodging etc.

Eligibility Criteria for Evaluation of Tenders

1. The registered Chartered Accountant firm must have atleast 10 years experience in Auditing of Accounts. (The copy of registration certificate of the firm)

2. The bidder firm must have experience of conducting Audit (Statutory Audit and Internal Audit) of at least
two central Govt./State Govt./ PSU during last 5 years. (Self attested copy of appointment/engagement letter issued by the department must be attached)

3. The bidder entity/ any partner/ Director of the entity should not have been convicted in any disciplinary proceedings/criminal case by regulatory authority/court in connection with professional work. Bidder should not be in black list of any PSU or Govt. Department. Bidder to submit an undertaking in this respect as per relevant form. (Self undertaking to be attached).

4. The bidder should have office/branch office in the region of our Branch Office i.e Aurangabad city.
(Complete address of the branch office along with the details of contact person and his phone number should be submitted on letter head of the Firm)

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