Friday 21 March 2014

Appointment of Ca Firm For Internal Audit Of Loan Accounts And Other Specified Areas of Hudco For The Year 2014-15

F.NO.FIN/GA/IA-LOAN ACOUNTS/2011-12 ---- Mar 14
SUB: Appointment of CA Firm for Internal Audit of Loan Accounts and other
Specified Areas of HUDCO for the year 2014-15


Dear Sir/Madam,

HUDCO is a fully owned Govt. of India Enterprise under the administrative control of
Ministry of Housing and Urban Poverty Alleviation, Govt. of India. HUDCO invites bids
for internal audit of the loan accounts as per detail given below:-

SCOPE OF WORK
A. LOAN ACCOUNTS
1. Internal Audit of all transactions for the year 2014-15 of Loan Accounts (releases
and repayments) for Housing as well as Urban Infrastructure. The CA firm should
check the following:-
i) Releases with respect to date of release, amount rate of interest as per
applicable Financing pattern including rate of interest of consortium funded
project as per terms of Common Loan agreement (CLA)/ Inter Credit
Arrangement (ICA).
ii) Receipt/ recovery of application fee/ front-end-fee/ Research and Development
(R&D) as applicable in reference to the loan agreement and financing pattern
and checking of accounting entries.
iii) Recovery of deferment charges and prepayment charges as per norms, as and
when applicable.
iv) Repayments with respect to amount received, actual date of receipt/credit of
payments received from agency based on the bank statement.
v) Accounting of One Time Settlement (OTS)/ Default Resolution Package(DRP)
/Decree of Debt Recovery Tribunal (DRT)/ Debt Recovery administrative
Tribunal / Corporate Debt restructuring / Restructuring /
Deferment/Reschedulement and waiver implemented during the year.
vi) All default cases, NPA Provisioning and interest reversal as per NHB norms
vii) Implementation of the revised interest rate on account of automatic reset fallen
due on completion of specified period as per financing pattern.
viii) Booking of interest income for the period.
ix) Recovery of charges/fees as per terms of CLA/ICA or any other agreement in
case of consortium funded projects and checking of accounting entries.

2. The firm shall review the status of receipt of Balance Confirmation certificates from
the borrowing Agencies at the quarter end, which are not in the litigation and also
review the reconciliations or the reasons for the difference in the Balance
Confirmation certificates carried out by the Department.

3. The firm shall check the receipt of Utilisation Certificates from Borrowing Agencies in
respect of Grant released by Hudco.

4. The firm shall check calculation of interest on sample basis (specifying the scheme)
covering each category and Regional Office.

5. The firm shall check appropriations of payments received from agency on sample
basis (specifying the scheme) covering each category and Regional Office.

6. The firm shall check deferment/amendment in the loan card/new loan card with
respect to OTS/ DRP/ decree of DRT,DRAT/CDR/Restructuring/deferment/
reschedulement based on the amendment letter issued by the regional office and its
accounting entries.

7. The firm shall check loan recall notice implemented in the loan card based on the
loan recall notice issued by regional office during the period and its accounting
entries.

B. OTHER AREAS TO BE COVERED BY CA FIRM
1. The firm shall check all capital expenditure made during the year in Head Office and
Human Settlement Management Institute at Hudco House and its booking in the
respective Fixed Assets Accounts.

2. The firm shall check all Exchange fluctuation vouchers passed during the year in
respect of foreign currency account.

C. GENERAL
1. The exercise shall be undertaken based on quarterly information viz., June’14,
Sep.’14, Dec.’14 & March’15.
2. The concerned officer in the Department shall be contacted and advised to pass the
rectification entries for errors, omission and commissions observed.
3. A consolidated point wise report shall be submitted on quarterly basis identifying the
mistakes and correcting entries passed by the Department.
4. The firm shall give the compliance report on the corrective actions carried out on the
observations brought out in the report.
5. The draft audit report is to be discussed with ED(Audit) by the senior partner of the
CA firm.
6. The CA Firm shall complete the assignment as per scope of work indicated above
latest by 15th April 15.

D. OTHER TERMS & CONDITIONS
1. The fees shall be released on quarterly basis on receipt of the quarterly report from
the auditors upon furnishing invoice, copy of report and certificate in detail stating
that work has been completed as per scope of work and errors, omissions etc.
observed have been rectified.
2. The payment shall be made on quarterly basis- 20% on receipt of the quarterly
report from the auditors at the end of each quarter as per point 1 above and balance
20% shall be made after completion of Statutory Audit and Govt. Audit.
3. The CA Firm will depute its representatives to attend HUDCO office on all working
days and on Saturday/Sunday or any other public holiday on need basis till
completion of the assignment. Senior partner of CA Firm shall attend HUDCO office
at least twice a week till completion of the assignment. The CA Firm shall complete
their assignment under the overall control of Executive Director (IA) and are also
expected to fully satisfy Statutory/ Govt. auditors for the work carried out by them.
4. HUDCO shall have the right to terminate the contract forthwith by giving notice at the
address mentioned herein on failure to provide satisfactory service. The decision of
HUDCO regarding dis-satisfaction of services/delay/damages caused by CA Firm
shall be final. Further in such an event, HUDCO shall have the right to forfeit the
compensation for the contract and also recover damages without any further notice
to CA Firm.
5. The term of appointment of CA Firm will be for one year i.e. internal audit of
Financial Year 2014-15 extendable further up to 2 years. However, the renewal of
the appointment for next year will be at the sole discretion of Hudco.

E. SPECIFIED CONDITIONS (ELIGIBILITY CRITERIA) – TECHNICAL CRITERIA
1. The entire exercise of above assignment including submission of all quarterly
reports, passing of necessary corrective entries, correct NHB provisioning etc.
should be completed on priority basis to enable the HUDCO management to utilise it
as a base in future audits, to finalise audit in a time bound manner, latest by 15th
April 15
2. The CA Firm should have minimum 6 partners out of which 2 partners should have
minimum of 15 years experience, 2 partners should have minimum of 10 years
experience and 2 partners should have minimum of 05 years experience. The firm
should have staff strength of minimum 15 employees as on the date of tender.
3. The annual turnover of the CA Firm should be at least Rs 50 lakhs as on March 31st
2013 (Audited) .
4. The firm should have handled the assignments of Financial Institutions/ PSUs on the
assignments relating to finance and/ or audit.
5. The firm should have conducted internal/ Central (Statutory) audit (excl. concurrent
audit of branches of banks) of Financial Institution/ Banks.
6. The firm should have Head Office in NCR so that the work can be completed
expeditiously.

F. GENERAL TERMS AND CONDITIONS:-
The general terms and conditions applicable in regard to submission of bid/offer for
award of contract by HUDCO are as follows:-
1. The bids may be submitted in two sealed cover envelopes separately placed
together in one sealed envelope. The first envelope shall contain Technical bid and
second envelope shall contain Financial bid.
2. The Technical bid/offer shall be opened first and after that the financial bids will be
opened only in case of technically qualified firms.
3. The date of opening of financial bids shall be informed later on to the technically
qualified bidders only.
4. The CA Firm should declare whether any partner of the firm has any relation with
any employee working in HUDCO and if so give the name of the employee and the
relationship, and also whether any of them has a relationship within the meaning of
Section 6 of the Companies Act 1956, with any of the Directors of HUDCO, and also
with the Statutory Auditors (M/s Dhawan & Co., Chartered Accountants, 312,
Wegmans House , 21, Veer Savarkar Block, Shakarpur ,New Delhi-110092) of
Hudco, if so give details to ensure compliance under sec 297 & 299 of Companies
Act’1956.
5. Any modification in offer after the date of opening will not be considered.
6. Bids/offers received late, will not be considered. HUDCO will not be responsible for
any postal delay or any delay whatsoever.
7. HUDCO reserves the right to reject any or all bid/offers and/or alter the conditions
without assigning any reason.
Bids/offers should be sent in a sealed cover as stated in para 1 of this letter super
scribing “Bids/offers for Appointment of CA Firm for Internal Audit of Loan
Accounts and other Specified Areas of HUDCO – 2014-15” and should be sent
either by post or deposited in tender box available at HUDCO, HUDCO BHAWAN, India
Habitat Centre, Lodhi Road, New Delhi, 11003 by 1.00 pm on 7th April 2014. Technical
bids/offers will be opened on the same day at 3.00 pm, as per address and schedule
given on tender page.

Thanking You.
For and on behalf of HUDCO
(K K Gupta)
Annexure-1

Kindly provide the following Details:-
1. Bank Name ____________________________________
2. Bank A/c Number ____________________________________
3. Branch Name ____________________________________
4. Branch Address ____________________________________
5. Branch Telephone No. ____________________________________
6. A/C type ____________________________________
(SB A/c/ CA/Cash Credit with code)
7. Bank Code ____________________________________
(9 digit code number of Bank & Branch)
8. PAN No. ____________________________________
9. Service Tax No. ____________________________________
10. IFSC No. ____________________________________
11. TIN NO. ____________________________________
Signature ________________
Designation ________________
Date ________________
Annexure-1 1
Kindly provide the details of Technical criteria as per following format:-
1. Name of CA Firm ____________________________________
2. Address of The Firm ____________________________________
(Head Office of the Firm
should be in NCR)
3. No. of partners ____________________________________
4. Partners Experience ____________________________________
(In No. of years)
5. Staff Strength ____________________________________
6. Annual Turnover (Audited) ____________________________________
(As on 31.03.2013)
7. Details of Experience in Financial Intuitions/ ____________________________________
PSUs relating to Finance and/or Audit
(The details can be given in separate annexure)
8. Details of Experience in Internal/Central ____________________________________
(Statutory) audit (excluding concurrent
Audit of branches of banks) of financial
Institutions/Banks.
(The details can be given in separate annexure)
Signature ________________
Designation ________________
Date ________________

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