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Northern Coalfields Limited: Tender Document

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Northern Coalfields Limited

(A Mini Ratna Company)

Ref.No. NCL/SGR/IAD/Misc Audit/2024/197 dated 09/02/2024

Open e-Tender

Tender Document
For Empanelment & Appointment of Auditor for
conducting physical verification of Stores & Spares,
fixed assets and Road Sales Audit for the F.Y.2023-24.

Northern Coalfields Limited


Panjreh Bhavan
PO-Singrauli Colliery
District-Singrauli
Pin code-486889
Madhya Pradesh

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INDEX

Sl.no. Table of Contents Page no


1 Invitation for Bids 3-5
2 Instructions to bidders 6-10
3 Scope of audit 11-15
4 Terms of reference 16-19
5 General terms and 20-21
conditions(Annexure-A)
6 Application Format(Annexure-B) 22-23
7 Letter of Bid(Annexure-C) 24-25
8 Format for authorization to DSC 26
holders( Annexure-D)
9 Selection Criteria(Annexure-E) 27-28
10 Physical verification of stores and 29-31
spares (Annexure-I)
11 Physical verification and Reconciliation of 32
Fixed assets(Annexure-II)
12 Road sale audit(Annexure-III) 33-34
13 Statement of stock of stores and 35
spares as on 31st December
‘2023(Annexure-IIA)
14 Statement of physically verified 36
stores and spares not entered in Bin
card/Kardex/ as on 31st December
2023 (Annexure-IIB)
15 Physically verified 37
stores&spares(slow/non-
moving)lying for more than 3years
but less than 5 years (sample
basis)(Annexure-IIC)
16 Physical verification of stores & 38
spares(obsolete) lying for more
than 5 years (sample
basis)(Annexure-IID)
17 Statement of items in grouping of 39
scrap as on 31st December2023
(Annexure-II(E)

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Invitation for Bids (IFB)

1) Northern Coalfields Limited, a Miniratna Company (A Govt.of India Undertaking) having


its registered office at Panjreh Bhawan, PO-Singrauli Colliery, District-Singrauli, Madhya
Pradesh, Pin Code-486889, India, invites online bids through e-tender on CIL’s e-
procurement portal (https://coalindiatenders.nic.in) for empanelment and appointment
of Practising Chartered Accountant or Cost Accountant or a Firm / LLP of Chartered
Accountants / Cost Accountants registered with the Institute of Chartered Accountants
of India / Institute of Cost Accountants of India for conducting physical verification of
Stores & Spares, Fixed Assets and Road Sale Audit in respect of
Projects/Units/Headquarter Units of the Company for which 15(fifteen) number audit
firms will be selected. The selected audit firms have to conduct audit as specified in
Scope of Audit and Terms of Reference of Expression of Interest.

Note:-Audit Firms having more than two partners are not eligible to bid and hence
need not apply.

2) All supporting documents regarding Application Format (Annexure-B), such as Firm


Profile, Latest Firm Registration Certificate/Constitution Certificate, Certificate of
Practice, Membership Certificate, Mark Sheets/Certificate of IPCC/Inter Examination,
Appointment letters, in support of experience duly signed with seal of the audit firm
must be enclosed. In absence of documentary evidence, no marks will be accorded to a
particular criterion, without assigning any reason, whatsoever.

3) A declaration to the effect that all the terms and conditions of tender have been
accepted unconditionally must be submitted along with the application.
4) The complete offer including Application Format, indicating current status of the firm as on
date of submission of tender, preferably typed in the letter head of the firm should be
submitted. No hand written offer will be accepted.
5) Overwriting / corrections/erasing and use of white ink should be avoided. However, if
any correction is inevitable, the same should be preferably authenticated with signature
and seal.

6) Northern Coalfields Limited reserves the right to reject or accept or withdraw the tender in
full or part, as the case may, is without assigning any reasons thereof. No conditional
offer will be accepted.
7) The complete tender document shall be available in the CIL’s e- procurement portal
https://coalindiatenders.nic.in for downloading and submission of offer. The complete
tender document shall also be available on Northern Coalfields Limited website
www.nclcil.in and Central Public Procurement portal (http://eprocure.gov.in) for
downloading only.

8) There will be no physical/manual sale of tender document. There is no Tender Fee and
the bidders can download tender document free of cost from any of the websites
mentioned above.
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9) Details of tender:-

1 Tender No. Tender No.: NCL/SGR/IAD/Misc Audit


/2024/197 Dated 09/02/2024
2 Type of Tender Open Domestic Tender
3 Estimated value of 30,18,940.00
Tender
4 Tender Fee NIL
5 Earnest Money Not Applicable
Deposit
6 Subject of Tender Empanelment and Appointment of auditors for
conducting physical verification of Stores & Spares,
Fixed Assets and Road Sale Audit for F.Y.2023-24.
7 e-Publishing date of
Tender
8 Downloading of Tender Document
(i) Starts on
(ii) Closes on
9 Seeking Clarification
(i) Starts on
(ii) Closes on
10 Online Submission of Offers
(i) Start Date and Time
(ii) Last Date and Time
11 Due date of Opening of Tenders

10) The offers have to be submitted online through the CIL’s e-procurement portal
https://coalindiatenders.nic.in. The tenderer has to get themselves enrolled on the above
portal and follow the procedure laid therein for submission of offer. The Online Bidder
Enrolment is free of cost and one-time activity only.

11) There is no provision to take out the list of parties who have downloaded the tender document
from the above referred website. As such, bidders are requested to visit the website once again
before the last date of submission of offer/due date of tender opening to ensure that they have
not missed out any corrigendum issued against the said tender after they have downloaded the
tender document. The responsibility of downloading the corrigendum, if any, will be of the
bidder. No separate intimation in respect of corrigendum to the NIT (if any) will be sent to the
bidders who have downloaded the tender document from website.

12) The bidders, in their own interest, are requested not to wait till the last moment for submission
of bid to avoid last minute rush and local problems related to internet connectivity, law and
order, strike, bandh etc. The Company shall not be responsible, if bids could not be uploaded
due to such local problems at the bidder’s end.

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13) The interested bidders may obtain further information from the office of Chief of Internal Audit
as under:-

Chief of Internal Audit


Internal Audit Department
Northern Coalfields Limited
PO- Singrauli Colliery
Distt- Singrauli
State-MP, PIN-486889
Landline:-07805-256293
Mobile:-9406711523/9406965258/9437491558
Email address: internalaudit.ncl@coalindia.in

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Instructions to Bidders (ITB)

1. Requirements for participation in e-tender:


In order to submit the online offer on CIL’s e-Procurement portal
https://coalindiatenders.nic.in the bidders should meet the following requirements:
a) PC connected with Internet (For details, visit link “Bidders Manual Kit” on home page
of CIL’s e-Procurement portal https://coalindiatenders.nic.in). It will be the bidder’s
responsibility to comply with the system requirements i.e. hardware, software and
internet connectivity at bidder’s premises to access the e-Procurement website. Under
no circumstances, the Company shall be liable to the bidders for any direct/indirect
loss or damages incurred by them arising out of incorrect use of the e-Procurement
system or internet connectivity failures.
b) Enrolment with CIL’s e-Procurement portal
https://coalindiatenders.nic.in , the online enrolment of the bidders on the portal is
free of cost and one time activity only. The registration should be in the name of
bidder whereas DSC holder may be either bidder himself or its duly authorized person
having DSC indicating name of firm as that of bidder. It shall be the responsibility of the
bidder to ensure that they get registered with the CIL’s e-Procurement portal well in
advance and download the documents before the last date and time for the same.
c) Class II or Class III Digital Signature Certificate (DSC) issued by a Certifying Authority
authorized by Controller of Certifying Authority (CCA) and which can be traced up to
the chain of trust to the Root Certificate of CCA.
2. Help for participating in e-tender:
The detailed method for participating in the e-procurement is available on links “Help for
Contractor” and “Bidders Manual Kit” in CIL’s e- Procurement portal. The bidders may
also seek help from the help-desk on the numbers available on CIL’s e-Procurement
portal. All queries will be answered in English / Hindi only.
3. Communication:
The bidder must provide complete address, fax number, corporate e-mail id and mobile
number to enable NCL to communicate through e-mail/SMS, if necessary , which shall be
deemed as valid communication.
4. Cost of Bidding:

The bidder shall bear all costs associated with the preparation and online submission of
bid and the Company will in no case be responsible or liable for those costs, regardless of
the conduct or outcome of the bidding process.

5. Clarification of Bid Documents and Last date for submission of Bid:


A prospective bidder may seek clarification online through CIL’s e-procurement portal after e-
Publication of the NIT. The Company will respond to such requests for clarification of the Bid
Documents, which are received not later than 10 (Ten) days prior to the deadline for the online
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submission of bid. Company’s response shall also be put on the CIL’s e-procurement portal. Bids
must be submitted along with all supporting documents in the CIL e-procurement portal online on
or before to the scheduled time and date as mentioned in ITB.

6. Due date of opening of Bid:


Bids will be opened online at the scheduled time on the due date of opening as mentioned
in IFB. In the event of the scheduled due date of opening of bids being declared as a
closed/holiday for NCL office or due to Force Majeure reasons, the due date for opening of
bids will be the next working day at the scheduled time.
7. Extension of due date of tender:
Northern Coalfields Limited reserves the right to extend the due date of tender as
deemed fit on case to case basis by issue of corrigendum through portal. Further,
if at least 3 bids are not received within originally stipulated due date, the due
date shall be extended by 4 (four) days by the portal automatically. If, even after
granting extensions (4 days), less than 3 bids are received, the tender shall be
opened without further extension. Separate paper publication of corrigendum
for extending the due dates shall not be made.

8. Language: The language of the bid shall be English. All documents enclosed should also
be in English language. In case the original document is in a different language, self-
attested English translation with signature and stamp of the authorized signatory of the
bidder who has signed the LOB shall be furnished.

9. Earnest Money Deposit: Not Applicable

10. Letter of Bid (LOB): The format of Letter of Bid (LOB) as given at Annexure- C will be
downloaded by the bidder and will be printed on Bidder’s letter head and duly Signed by
a person competent and having the “Authority”/ “Power of Attorney” to bind the bidder.
Scanned copy of such a “Signed & Stamped with the seal of the company” LOB along
with “Authority”/“Power of Attorney” are to be uploaded during bid submission in
Cover- I. This will be the covering letter of the bidder for the submitted bid.

The content of the “Letter of Bid” uploaded by the bidder must be the same as per the
format downloaded from website and it should not contain any other information. If
there is any change in the contents of Letter of Bid uploaded by bidder as compared to
the format of Letter of Bid uploaded by the department with NIT document, then the bid
may be liable for rejection. These documents are to be uploaded online in the specified
folder provided in the e procurement portal.

Note: The person, who signs the Letter of Bid physically, should bid online while
submitting the offer with his own DSC mapped in the name of bidder. In case the person
who has signed LOB is not bidding himself and has authorized another person who uses
his DSC is mapped in the name of bidder, to bid online, then authorization on non-
judicial stamp paper duly notarized (as per Annexure-D) by the person signing the LOB in
favour of person bidding online is required to be uploaded. This document is to be
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uploaded online in the specified folder provided in the e- procurement portal.

11. Methodology for online Submission of Bids


The offers are to be submitted online through CIL’s e-procurement portal in 1 (one) cover (Cover
- I ‘Technical Bid’). Authenticated and Scanned copies of documents shall be uploaded online in
the specified folder provided in the e procurement portal.

The Cover -I ‘Technical Bid’ is to be uploaded in e-procurement portal before the last
date and time for submission of online bid. No offline bid shall be accepted. Offer
received through Post, Courier, Fax or E-mail or any social media will not be considered.

12. Evaluation of Bids

i. After opening of the bid, the documents submitted by firms will be downloaded and
shall be put up to the evaluation Committee. The Committee will examine the
uploaded documents against information/declarations furnished by firms online. If it
confirms to all of the information/ declarations furnished by the firm online, then the
firm will be considered eligible.

ii. Bids which have not been submitted with valid documents will not be considered for
evaluation.

iii. After evaluation of the uploaded documents, shortfall documents in connection with
the uploaded documents, if required, shall be sought from the bidders by the
evaluation Committee. For this purpose, maximum 1 chance shall be given. The time
period for clarification will be considered for 7 days. The firm will get this information
on their personalized dash board under “Upload confirmatory document” link.

Additionally, information shall also be sent by system generated email and SMS. It will
be the firm’s responsibility to check the updated status/information on their
personalized dash board regularly after opening of bid. No separate communication
will be made in this regard. Non- receipt of e- mail and SMS will not be accepted as a
reason of non-submission of documents within prescribed time. The firm will upload
the scanned copy of all those specified documents in support of the information/
declarations furnished by them online within the specified period.

iv. The offers will be evaluated in accordance with the Selection Criteria mentioned in
Annexure-E on the basis of documents uploaded by firm online. The firm is not required
to submit hard copy of any document through offline mode. Any document submitted
offline will not be given any cognizance in the evaluation of offer.

v. In case the firm submits requisite documents online as per tender document, then the
firm will be considered eligible.

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vi. In case the firm fails to submit requisite documents online as per tender document or
if any of the information/declaration furnished by firm online is found to be wrong by
Committee during evaluation of scanned documents uploaded by firm, then his bid
shall be rejected.

vii. In case none of the firms complies the technical requirement, then necessary action as
deemed fit by management will be taken.

viii. It is responsibility of firms to upload legible/clearly readable scanned copy of all the
required documents as mentioned above.

13. Scanned copy (PDF) of supporting documents duly signed and stamped should be
uploaded in the Folder provided for this purpose. However, NCL reserves the right to verify
such documents with the original, if necessary. Bidder has to provide the originals to NCL
on demand.

14. The offer should be submitted strictly as per the terms & conditions laid down in the
tender document, failing which the offer will be liable for rejection. No deviation of the
terms and conditions of the tender document is acceptable.

15. NCL reserves the right to reject or accept or withdraw the tender in full or part as the
case may be without assigning reason thereof.

16. NCL also reserves the right to short close the contract in case of breach of terms and
conditions of the contract by the tenderer.

17. The bidders are required to ensure that their corporate e-mail id is provided / updated
during the registration of vendor with e-procurement portal. Bidders are also requested
to indicate their valid corporate e-mail id and mobile no. of authorized representative at
Instruction to Bidders for communications through e-mails / SMS alerts (if any).

18. Modification of the submitted bid shall be allowed online only before the deadline of
submission of tender and the bidder may modify and resubmit the bid online as many
times as he may wish. Bidders may withdraw their bids online within the last date and
time of bid submission. Hence, the last documents received shall be considered for
evaluation.

19. No modification of the bid or any form of communication with NCL or submission of any
additional documents, not specifically asked for by NCL, will be allowed and even if
submitted, they will not be considered by the NCL.

20. In case of any technical mistake in online offer and NIC confirming that there is no fault
from their side then NCL will not be held responsible for the consequences and no
correspondence in this regard will be given any cognizance by NCL.

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21. General terms and conditions mentioned at Annexure-A must be signed by the partner
of the audit firm mentioning name of the partner, membership number and firm
registration number. No deviation of the general terms and conditions is acceptable.

Encl.: Annexures

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SCOPE OF AUDIT

The Scope of the work of Physical Verification of Stores & Spares, Fixed Assets and Road Sale audit will be as
under:

A. Physical verification of stores and spares:

1) To report whether the opening balances in the relevant Kardex/Bin cards/stores ledger of the current year
has been verified from the audited physical and book balances statement of the previous year. If not tallied,
should be reported. The physical verification shall be done at Central/Regional Stores as well as Site/Colliery
stores including diesel & lubricants at depot.

2) To examine and report whether all receipts and issues during the intervening period(Period of actual date
of Physical verification from 1st January’2023 to 31st December’2023) were duly entered into the Bin
Cards/Kardex/Store ledger and verify the same with basic records. Deviations, if any, on such examination
should be reported.

3) To examine and report whether derived physical balances (with due adjustment of all receipts and issues
after the intervening period) as on 31st December’2023 is tallied with Kardex /Bin cards/Stores ledger as on
31st December’2023.In case of deviation, item wise discrepancies should be reported to Depot officer for
verification and acceptance. Copy of such report shall also be submitted to Staff officer (MM) and Area
Finance Manager of the concerned project/unit. Reconciliation for the difference to be done by the stores
auditor.

4) List of stores and spares for which no D.T.R. / D.R.R. has been prepared as on date of physical verification is
to be submitted separately with reason thereof.

5) To report the status of recovery of store materials issued on loan, if any, to the employees and contractors.

6) Age wise insurance claims lodged with insurance company for shortage/ damaged materials received in
stores and their current status should be submitted.

7) Considering the quantity, value, diversity of physical storage & declining % of closing stock, ABC
analysis will be as follows :
Items Cost per unit % of Physical Verification
“A” Rs 10,000/- & more 100 %

Safety Items All Items 100 %


“B” Rs 2000/- to 9999/- 25 %
“C” Less than Rs 2000/- 5%

The above details of % covered in physical verification in terms of ABC analysis should be ensured as
per Annexure-II(A)

8) Details of percentage covered in physical verification in terms of ABC Analysis including Safety
items are to be mentioned in the report as follows:-

Items Quantity Value


% covered % covered
A
Safety Items
B
C

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9) To examine and report whether any stores and spares verified physically but no entry was found in
the Bin card/Kardex/stores ledger (Annexure-II(B). If so, detail of such stores and spares to be
furnished with the explanation of the management.

10) To report whether the materials lying in the stores


a) Are properly stored to avoid damage and pilferage,
b) Of similar nature are stored together,
c) Are segregated between stores and spares which are regularly consumed and
Stores and spares which are insurance in nature (if any) i.e. not regularly
consumed.

11) To report whether FIFO basis is followed in case of physical issue of stores and spares.

12) To report whether the system of ABC analysis of stores is followed. Excess stock of ‘A’ category
items and length of time of such excess stock is also to be reported.

13) To report whether the stores and spares physically verified are found at the location mentioned
in the software system.

14) To report about the treatment made in the Bin cards/Kardex/stores ledger regarding shortfall in
the physical balances. All the stock and stores are to be physically counted even if quantity in Kardex is nil.
Nil card having physical balance will be paid.

15) To examine on sample basis and report whether Kardex/Bin cards/stores ledger are maintained
properly and all receipts/issues are duly authenticated. Any deviations should be reported in detail.

16) To comment on the action taken report submitted by the management on discrepancies given in
the earlier reports.

17) Procedure for physical verification of obsolete and non-moving items:


a) To examine the report prepared by the company for the obsolete/non-moving
Idle stores and spares lying beyond three years and five years (if any).This is
to be reported separately grouping the items under type of materials like
Rubber (including Tyre and Tube), Iron and Steels, Lubricants, Battery etc.
b) Reports should also indicate the last date of movement of the indented items.
c) To report whether full provision of obsolete stock is made.
d) Proper categorization of obsolete and non-moving items.
e) Separate and proper storage of obsolete and non-moving items.
f) Proper and timely disposal of obsolete stores.
g) Intimation to other mines and subsidiaries before declaring any stores items
as obsolete.

18) To examine the report prepared by the company on the maintenance of scraps materials. The
report should indicate the value and quantity of scrap sold and the items wise grouping of scrap
indicating the opening balances, addition, disposal and closing balances.

19) It should be ensured that at least 70 % of value of closing stock should be verified by Store
Auditor.

20) The following criteria may be considered for ascertaining Obsolete & Non Moving Stores

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a) Where there is no movement in the stock of Stores & Spares in the Bin for a period of 5 years &
more may be treated as “Obsolete Stock” (Annexure - II (D)
b) Where there is no movement in the stock of Stores & Spares in the Bin for a period of 3 years &
more may be treated as “Non Moving Stock” (Annexure - II (C).

21) The following criteria may be considered for physical verification of Slow Moving /Obsolete
Stock:-
a) 100 % physical verification for “A” category Obsolete / Slow Moving items by Store Auditor,
b) 20 % physical verification for “B” category Obsolete / Slow Moving items by Store Auditor on
rotation basis.

22) The details of Scrap Materials are to be maintained by store officer regularly. The Store Auditor
will examine the records of scrap & will submit his report in the prescribed format as per Annexure II
(E).

All the Annexures i.e. Annexure – I (Audit Coverage), Annexure II (A), Annexure II (B), Annexure II (C),
Annexure II (D), Annexure II (E) shall be prepared and will be signed by Store Keeper, Head of Department &
Store Auditor of all the Central Works Shop/ Central Stores / Regional Stores/Works Shops of NCL, as the case
may be.

B. Physical verification & Reconciliation of Fixed Assets:

(A) Physical verification of fixed assets shall include:


i) Assets appearing in Assets register
ii) Assets received from other projects/Subsidiary Company not entered in Asset Register, if any.
iii) Assets under commissioning/erection.
iv) Assets in Stores.
v) Assets/ Surveyed-off equipment’s not yet disposed off,
(B) Reconciliation
i) To reconcile physically verified all assets with records in Assets Register/Plant Cards
maintained by the Accounts Office of the Project.

ii) To prepare separate lists of (i) Assets entered in the Assets Register and physically available,
(ii) Assets physically available but not appearing in the Assets Register and (iii) Assets appearing in
the Assets Register but not physically available (iv) Assets in Stores and (v) Assets under
erection/commissioning.

iii) To reconcile P&Ms in Stores, under erection and under inter-area and inter-company transfer
with Store records, job cards and accounts maintained by the Area Accounts Office, as the case may
be.

Annexure-II (Audit Coverage) shall be prepared and will be signed by the General Manager, Area Finance
Manager and Auditor of the respective projects/units/HQ of NCL.

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C. Scope of Road Sales Audit:-
1. Whether the despatches to the cash sale parties have been made as per authorized delivery
orders (D.O)/Allotment orders (A.O) from the authorized officials? If not, what is the lacuna?

2. (i) Whether dispatches to the cash sale parties have been allowed only
against receipt of payments in advance for the entire quantity under
delivery. Deviation in above, if any, noticed on examination, should be
reported giving relevant details with reasons as ascertained in the course of
audit scrutiny.
(ii) Whether correct amount has been deposited and a cash receipt has duly been issued after
confirmation of the credit from the Bank for the amount of A.O./D.O. before issue of
A.O./D.O.?
(iii) Whether all receipts have properly been accounted for.

3. (i) Whether valuation of the A.O./D.O. is correct?


(ii) Whether A.O./D.O. quantity is within the limit of sanctioned quantity?
(iii) Whether grade and colliery as mentioned in A.O./D.O. is within the scope
of RRO?
(iv) Whether there is validity of A.O. before issue of D.O.?

4. Whether lifting of coal has been made within the validity period of A.O./D.O.?

5. Whether all the despatches have been properly entered into in the Despatch Register
immediately and serially?

6. (i)Whether the despatches have been properly billed?


(ii) Whether billing has been made within next 24 hours from the receipt of the despatched
documents. Deviation, if any, in above is noticed, and reasons for the same to be indicated in the
Report.
(iii) Whether the bills so raised are timely forwarded to the concerned parties?
(iv)Whether proper reconciliation is being made between A.O./D.O. quantity and despatch quantity?
Also Bill Register/Bill is being reconciled with the lifted quantity of D.O.

8. Whether refunds are made after observing all formalities?

9. Whether Reconciliation of despatches (party wise & D.O. wise) with bill during 2023-24 has
been done?

10. Whether all despatch invoices are reconciled regularly at monthly intervals with reference to
the corresponding entries in the despatch register, in order to be certain that all despatches have
been invoiced.
11. (i) Whether the Sundry Debtor Ledger/Advance Deposit from Customer's Ledger is up-to-date
along with all details of bills?
(ii) Checking of Sundry Debtor/Advance Deposit from Customer's Ledger balance in Accounts as on
31.03.2024 and details thereof as per Sundry Debtors Schedule and the Register.

12. Checking of A.O./D.O. register maintained in Area.

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13. Checking of lifting of coal/dispatch register in Colliery, Weigh Bridge etc.

14. Whether grade and colliery diversions have got proper authorization?

Annexure-III(Audit Coverage) shall be prepared and will be signed by the General Manager, Area
Sales Manager, Area Finance Manager and Auditor of the respective projects/units/HQ of NCL.

NOTE: The above points are illustrative but not exhaustive.

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TERMS OF REFERENCE OF AUDIT

The Institute of Chartered Accountants of India (ICAI) has issued Standards on Internal Audit (SIA).
The Auditors shall follow these Standards to the extent applicable in the matter of Planning, Audit
Procedures (Sampling, Analytical Procedures etc.), Documentation and Reporting. The Auditor is
expected to apply his judgment to decide the applicability of these standards w.r.t. scope of work
and reporting requirements.

AUDIT TEAM
1) A practicing Chartered Accountant or Cost Accountant or a Firm/LLP of Chartered
Accountants/Cost Accountants registered with the Institute of Chartered Accountants of India /
Institute of Cost Accountants of India, appointed to conduct Audit should depute audit team in the
HQ/ Project/Units.
2) The Audit Team should consist of one qualified CA/CMA and two Inter CA (IPCC) / Inter CMA
semi qualified assistants.
3) Normally the composition of audit team should not be changed. However, under certain
circumstances beyond control of the Audit Firm, if the same needs to be changed in any
manner, it may be done under intimation to CGM/GM of the Project and GM/HOD (Internal
Audit), NCL (subject to verification of credentials of the new incumbent to be sent along
with the intimation with photo proof of qualification, PAN card, Aadhaar card and a brief
profile). The audit team members should carry Photo ID issued by the Audit Firm duly
attested by the CGM/GM of the project or GM/HoD (Internal Audit) NCL.
4) The partner/full time qualified person of the audit firm should visit at the start of the audit
work and also at the time of finalizing the audit report. The attendance of the team
members will be maintained by the auditee project/unit/HQ.
5) The Audit team will conduct the audit as per Manual, Rules and Regulations, guidelines,
instructions, delegation of powers etc. and in consultation with the concerned officials at
Projects/Units/HQ.
6) The number of Audit firms may vary according to the number of mines, Manpower,
Production and Dispatches of a particular Project/Unit as decided by the management.

AUDIT REPORT

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The Audit Report should cover the scope as well as contain the annexures mentioned in the scope
thereof. Draft audit reports must be discussed thoroughly with AFM/ HOD/GM of the concerned
Project and Chief of Internal Audit, NCL well before submission of the Final Report.

The individual audit report for each project/unit should be signed by the partner of the audit firm
and should be submitted in five copies. One copy of the report shall be submitted as follows:-

1).One copy to GM/Project/unit concerned


2).One copy to Depot Officer/Project/Unit
3).One copy each to AFM-Project/Unit
4).One copy to GM (Finance) In charge, NCL, Singrauli, MP
5).One copy to Chief of Internal Audit, NCL, Singrauli.

The scanned copy/soft copy of the audit report should be given to the mail address of the
respective project authority and the Chief of Internal Audit.

Audit Report should be signed by the partner of the Firm mentioning Name of the Partner, UDIN,
Membership No. and Firm Registration No.

AUDIT FEE

A. Remuneration

(I) For carrying out the Physical Verification of Stock of Stores & Spares, the Auditors may be paid
remuneration of Rs 20/- per verified Bin Card. No fees may be payable for Bin Card having value
less than Rs100 on the date of physical verification. Further for reconciliation of Numerical Ledger
(NL) with Priced Ledger (PL), an additional fee @ 50 % of the Rate per Live Card may be paid.
.
(II) Alike previous years, the fees for Physical verification of fixed assets will be lump sum which
is given below project-wise:-
(a) HQ Units & Block-B – Rs 9000.00(Rs.Nine Thousand only)
(b) Jayant Project—Rs.9000.00(Rs Nine Thousand only)
(c) CWS&NSC—Rs.7500.00(Rs Seven Thousand five hundred only)
(d) Dudhichua—Rs.5600.00(Rs Five Thousand six hundred only)
(e) Nigahi—Rs.5600.00(Rs Five Thousand six hundred only)
(f) Amlori—Rs.5600.00(Rs Five Thousand six hundred only)
(g) Bina&Krishnashilla—Rs.5600.00(Rs Five Thousand Six Hundred only)
(h) Khadia&IWSS—Rs.5600.00(Five Thousand Six Hundred only)
(i) Jhingurda—Rs.5500.00(Rs Five Thousand five hundred only)
(j) Kakri—Rs.5500.00(Rs Five Thousand five hundred only)

(III) For Road Sales:-


Auditors will be paid fee @ 05 Paisa (Five paisa) per tonne of Coal dispatched.

B. Travelling Allowance:
Partner will be entitled for rail fare by AC 1st class or Air Fare by economy class, Qualified Assistant by
AC 2nd Class and Semi-qualified assistant by AC 3rd class on submission of proof of journey, for to and
fro journey undertaken. For this purpose, journey will be considered from the firm’s nearest office

Page 17 of 39
given in the profile to the place of audit. In case of journey by mode other than rail/Air, TA will be
limited to entitled class or actual fare, whichever is lower, subject to production of documentary
evidence.
The Company will provide a good quality Boarding, Lodging and local transport facility to the Audit
Team and Partner.
C. Taxes: - All the applicable taxes will be paid extra.
D. Payment of Audit Fee
The GST invoice/Bill for conducting audit and TA bills will be paid upon submission of Reports. The
paying authority in case of project/unit will be Area Finance Manager of respective Project/units and
in case of Head Quarter, General Manager (Finance). The GST invoice/Bill in triplicate, duly certified
by the respective authority of Area/unit/project and in case of head quarter, GM/HOD (IA) along with
reports and attendance, shall be submitted for processing of payment.
E. Tentative Audit Fees for the Miscellaneous Audit
The tentative audit fees for miscellaneous audit viz. physical verification of stores & spares, Fixed
assets and road sale audit for the financial year 2023-24 are being tabulated as below:-
CALCULATION OF AUDIT FEES FOR MISCELLANAEOUS AUDIT FOR FY2023-24

CARDS(In
SL. NATURE OF Numbers/QUAN FIXED
NO. PROJECTS AUDIT TITY(In Tonnes) AUDIT FEES ASSETS FEES Total Fees
Jayant Physical 13596 2,71,920.00 9000.00 2,80,920.00
01 Verification
Jhingurda,Khadia &IWSS Physical 12621 2,52,420.00 11100.00 2,63,520.00
Verification
02
Bina, Krishnashilla,Kakri Physical 12309 2,46,180.00 11100.00 2,57,280.00
Verification
03
Krishnashilla Road Sale 47,18,000 2,35,900.00 2,35,900.00
audit
04
Dudhichua Physical 10330 2,06,600.00 5600.00 2,12,200.00
Verification
05
Dudhichua Road Sale 39,36,000 1,96,800.00 1,96,800.00
audit
06
Khadia Road Sale 39,05,000 1,95,250.00 1,95,250.00
audit
07
Nigahi Physical 9292 1,85,840.00 5600.00 1,91,440.00
Verification
08
Bina, Amlori Road Sale 37,76,000 1,88,800.00 1,88,800.00
audit
09
Nigahi Road Sale 37,07,000 1,85,350.00 1,85,350.00
audit
10
Amlori Physical 8933 178660.00 5600.00 1,84,260.00
Verification
11
HQ Units ,Block-B Physical 8626 1,72,520.00 9000.00 1,81,520.00
Verification
12
Jayant Road Sale 34,30,000 1,71,500.00 1,71,500.00
audit
13
CWS & NSC Physical 6485 129700.00 7500.00 1,37,200.00
14
Page 18 of 39
Verification

Block-B, Jhingurda, Kakri Road Sale 27,40,000 1,37,000.00 1,37,000.00


audit
15
29,54,440.00 64,500.00 30,18,940.00
Note:-i) The above calculation (in respect of quantity of despatch/live cards) has been made on tentative basis, which
may vary during actual conduct of audit. Live card having value less than Rs100 has not been considered in above
estimate.
ii) Rs 10 per card will be paid extra for NL/PL reconciliation for cards in which the balance as per price ledger differ from
Kardex/Bin cards of regional/central stores as on date of verification as per requirement of unit/project.
iii) Taxes shall be paid extra.

The auditors to be appointed for physical verification of stores, spares and fixed assets and road sale audit for the FY2023-24 shall
be governed by their respective scopes, mentioned under the head scope of audit. The remuneration mentioned in the aforesaid
table may vary during the conduct of audit, depending upon the number of live cards in case of physical verification of stores and
spares and dispatch quantity for road sale.

The audit firms which secures highest marks in the descending order of merit list shall be allotted audit work viz. physical
verification of stores, spares and fixed assets and road sale audit for the FY2023-24 accordingly, which shall only be reckoned as
per the chronological order shown in above table.

Audit Period
a) Time and Duration of the physical verification of store, spares and fixed assets:-
(i)The physical verification of Store & Spares shall be done on balance as on 31st December’2023 (Period of actual date of
Physical verification from 1st January’2023 to 31st December’2023) for Central/Regional Stores as well as Site/Colliery
stores including diesel & lubricants depot.
(ii)The Physical verification of Fixed Assets shall be done on balance as on 31.12.2023.

In respect of above, the auditor shall start the audit at the earliest, upon the receipt of the appointment letter and finish
the job within (thirty) 30 days and submit the report within (five) 05 days thereafter holding discussion at
Project/Unit/HQ of NCL. However, the start date, finish date and report submission date of the audit assignment will be
mentioned in appointment letter.

b) Time and Duration of the road sale audit:-


Time period for Road Sale Audit shall be done for the FY2023-24 (considering the dispatches of Coal from 01.04.2023 to
31.03.2024). In respect of this, the auditor shall start the audit at the earliest, upon the receipt of the appointment letter
and finish the job within (twenty) 20 days and submit the report within (five) 05 days thereafter holding discussion at
Project/Unit/HQ of NCL. However, the start date, finish date and report submission date of the audit assignment will be
mentioned in appointment letter.

Page 19 of 39
Annexure-A

GENERAL TERMS AND CONDITIONS.

1. The Audit Firm must not sub-contract the work. Only partners of the firm or employees or
qualified associates whose bio data is provided at least 7 days in advance can take up the audit. The
firms will have to declare that they are not related in any manner whatsoever with any existing or
past Audit firm or past and present employee of Coal India or any of its subsidiaries or Directors or
any person who is employed with Government of India. Past association upto last 3 years of personal
or financial or any other association of any kind now or in last 3 years is prohibited.

2. The audit team will work in strict confidence and will ensure that the information in respect of the
operation of the Area/Unit/Project is dealt in strict confidence and secrecy. A Certificate towards
maintaining confidentiality is to be provided by each member of the Internal Audit team before
commencement of Audit.

3. The members of the audit team should be in employment of the firm or professionally engaged for
specialized review, in a transparent contract (without financial terms disclosure) to be shared and
approved by the respective company based on special expertise or experience of such person.

4. The information provided in the application by the firm must be current, relevant and free from mis-
statements on the date of application.

5. Partner of the firm must not be related to Managing Director/whole time Director or part time
Director of company to be audited within the meaning of section 2 (77) of the Companies Act, 2013.

6. Neither the firm nor its partner or Associates should have any interest in the business of NCL.

7. The auditor will be required to issue certificate of Independence.

8. Audit Firms shall have primary responsibility to ensure that the limits specified under section
141(3)(g) of the Companies Act, 2013 are not violated.

9. The auditor/ firm must be free from any disqualification as per provisions of the Companies Act, 2013.
In addition to this, the Auditor/Firm must not be holding any assignment as Statutory Auditor/
Internal Auditor / Cost Auditor of CIL and its Subsidiaries as on the date of appointment and during
the continuity of the Audit.

10. Where a Chartered accountant/Cost Accountant is a partner / proprietor of more than one firm, in
such case, only one firm shall be allowed to take part in the selection process of NCL. If it is found that
more than one Firms having common partners makes application in the EOI initiated by NCL, then
applicant with highest marks among the firms (having common partners) shall only be considered and
applications of other firms (having common partners) shall stand cancelled.

11. Any other compliance/declaration, if any, required under Companies Act, 2013 shall be complied
/furnished by the Auditors.
12. If progress/performance of the audit team is not satisfactory, the management reserves the right to
terminate the appointment of the Firm with prior notice of one month.

13. Dispute/difference, if any, shall be mutually settled with CGM/GM of the Area/unit/Project/HQ. If the
dispute could not be settled at CGM/GM level, it will be forwarded to the CMD for decision, which will be
final and binding to all concerned.
Page 20 of 39
14. NCL reserves the right to reject or accept or withdraw the tender in full or part as the case may be
without assigning reason thereof.

15. NCL also reserves the right to short close the contract in case of breach of terms and conditions of
the contract by the tenderer.

16. The Audit Assignment will be terminated and the audit firm will also not be considered for
appointment/re-appointment in the following cases:
(a) If the firm obtains the appointment on the basis of false information/false statement.

(b) If the firm does not take up audit in terms of appointment letter within stipulated period.

(c) If the firm does not submit the Audit Report, complete in all respects, as per terms of appointment
within the stipulated time.

(d) If performance of the firm is not found satisfactory.

(e) If any fraud / embezzlement is detected subsequently and not reported by Auditor.

(f) The firm has to maintain the confidentiality requirement in terms of professional code of conduct and
they shall not appoint/utilize the services of those who are not employee/partner/director of the firm.

Note 1: The term "firm" will also include a proprietary firm and will also have the meaning as assigned to it in the
Indian Partnership Act, 1932 and a partnership as defined in the Limited Liability Partnership Act, 2008
with having adequate qualified partners and full time qualified employees and Article trainees / semi
qualified employees (a self- certified profile will be provided by all firms clearly indicating their
manpower, office infrastructure, software, hardware and other resources. No existing firm of internal
auditors/statutory/cost auditors can be appointed.

Note 2: NCL reserves the right to check the details and to ask for supporting evidence at any time.

Note 3: Disqualification of Auditor as per section 141(3) of the Companies Act 2013 will be applicable.

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 21 of 39
Annexure-B

APPLICATION FORMAT

SI No. Particulars Details


1. Name of the Firm with Registration no.
Registration No. and date of Registration of the firm
2. Registered Office Address & date of establishment
3. Branch Office Address & date of establishment
4. Contact No. of the Partner
5. Fax Number
6. Email address & Website
7 Bank Details (for EFT) of bidder.
a)Account Name/Beneficiary name
b)Banker’s Name
c)Branch
d)Address, City/Town, District, State
e)Nature of Account(Cash, Credit, Current, Saving)
f)IFSC Code
g) Account No
8. Name, Membership No. and date of Joining of existing partner with the Firm
having the longest association.
Ref : Selection criteria: SI No. 1
9. Name and Membership No. of the full time partners /proprietor having
experience in practice in the firm whether ACA/ ACMA, FCA/FCMA as on
01.01.2024 and continuing thereafter.
Ref : Selection criteria: SI No. 2(i)
10. Name and Membership No. of the full time partners/proprietor and full time
qualified persons having experience in practice in the firm as on 01.01.2024
having DISA/CISA and continuing thereafter.
Ref : Selection criteria: SI No. 2(ii)
11 Name, Membership No. and joining date of full time qualified assistants who
is an ACA/ACMA having experience working with the firm as on 01.01.2024
and continuing thereafter.
Ref : Selection criteria: SI No. 3
12. Name and date of joining of semi-qualified assistants (Inter Cost/ Inter
Chartered - IPCC - both group) & is working full time with the firm as on
01.01.2024 and continuing thereafter.
Ref : Selection criteria: SI No. 4
13. Experience of the firm in conducting
(A) Statutory/Internal Audit in PSU/Govt. Companies/Listed Companies
(B) Statutory/Concurrent audit in PSU Banks,
(C) Physical verification of Stores & Spares/Fixed assets /Perpetual inventory
audit/Road sale audit or coal sale audit etc. in PSU/Govt.
Companies/Listed Companies
Ref : Selection criteria: SI No. 5
14 Audit firms having Registered Office/Branch Office within the state as on
01.01.2024 and continuing thereafter, wherein the Head quarter of the
Northern Coalfields Limited is situated or is having its mining
operation(Madhya Pradesh/Uttar Pradesh)
Ref: Selection Criteria: Sl No.6

Page 22 of 39
Further, the following documents are required to be submitted online:

1. Self-attested copy of Latest Firm Registration Certificate/Constitution Certificate downloaded from the
website of Institute of Chartered Accountants of India/Institute of Cost Accountants of India, not earlier than
the date of publication of EOI, showing proof of registered office/branch office within the state.
2. Self-attested copy of membership certificate of Partners and full time qualified persons issued by Institute of
Chartered Accountants of India/Institute of Cost Accountants of India.
3. Self-attested copy of Certificate of Practice of Partners and full time qualified persons issued by Institute of
Chartered Accountants of India/Institute of Cost Accountants of India.
4. Self-attested copy of DISA/CISA of Partners and full time qualified persons issued by Institute of Chartered
Accountants of India/Institute of Cost Accountants of India.
5. Self-attested copy of Membership certificate of Full time qualified assistants issued by Institute of Chartered
Accountants of India/Institute of Cost Accountants of India.
6. Self-attested copy of Mark sheets/Certificate of IPCC/Inter Examination of semi-qualified assistants issued by
Institute of Chartered Accountants of India/Institute of Cost Accountants of India.
7. Self-attested copy of Latest Registration Certificate of PCA/Firm/LLP issued by Institute of Chartered
Accountants of India/Institute of Cost Accountants of India.
8. Self-attested copy of PAN Card of PCA/Firm/LLP.
9. Self-attested copy of GST Registration Certificate (if applicable).
10. (a)Self-attested copy of work order/appointment letter issued of Statutory/Internal Audit issued by PSU/Govt.
Companies/Listed Companies.
(b) Self-attested copy of work order/appointment letter issued of Statutory/Concurrent Audit in PSU Banks.
(c) Self-attested copy of work order/appointment letter issued of Physical verification of Stores &
Spares/Fixed assets /perpetual inventory audit/Road sale audit or coal sale audit in PSU/Govt.
Companies/Listed Companies.
11. All documents including EOI should be duly authenticated / signed by the partners with seal of firm as token of
unconditional acceptance of all term of reference/general terms and conditions.

In absence of the above documents the offer will be rejected. The documents uploaded online to the offer
must be serially numbered and duly signed by the bidder with official seal.

Note: - The participants must provide the copy of complete pages of Work Order/ appointment letter
(including last page of the work order/appointment letter reflecting the signature of issuing authority) for Sl.
No 9.

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 23 of 39
Annexure-C

Letter of Bid
To
Northern Coalfields Limited
Panjreh Bhavan
PO- Singrauli colliery
Dt- Singrauli-486889

Dear Sirs,
Sub: Tender No. :-2024_NCL_300887_1

1. Having examined the Tender Document including Addenda/Corrigenda, if any


(insert numbers), we, M/s. (..… name of the bidder firm. ) represented by the
undersigned, Mr/Ms………………… Employee/ Partner /Legal Attorney / Proprietor
/Accredited Representative, offer to supply and deliver (description of Goods and
Services) vide our offer No………………..dated in conformity with the said Tender
Document.

2. We confirm to accept all terms and conditions contained in the tender document
unconditionally.

3. We agree to abide by this bid for a period of 180 days from the date of bid opening and
it shall remain binding upon us and may be accepted at any time before the expiration
of that period.

4. We confirm that until a formal appointment order is issued, this bid together with your
written acceptance thereof and your Notification of Award, shall constitute a binding
Contract between us.

5. We understand that you are not bound to accept the lowest or any bid you may
receive.

6. We confirm that the contents of the offer are given after fully understanding and all
information furnished by us are correct and true and complete in every respect.

7. We confirm that all information/ documents / credentials submitted along with the
tender are genuine, authentic, true and valid.

8. We confirm that if any information or document submitted is found to be false /


incorrect forged/tampered in any way, the said offer shall be considered absolutely null
& void and action as deemed fit may be taken against us including termination of the
contract, forfeiture of all dues and Banning of our firm along with all partners of the
firm as per provisions of tender document/Purchase Manual of CIL/Provisions of law in
force.

9. We are not holding any assignment as Statutory /Cost/Internal Auditor of CIL and its
subsidiaries as on the date of appointment and during the continuity of Audit.

Page 24 of 39
10. We confirm that, our firm are not related in any manner whatsoever with any existing
or past Audit firm or past and present employee of Coal India or any of its subsidiaries
or Directors or any person who is employed with Government of India. Past association
upto last 3 years of personal or financial or any other association of any kind now or in
last 3 years is prohibited.

11. We have never been banned or delisted by any Government or Quasi-Government


Agency or any Public Sector Undertaking in India.

OR
We were banned by the organization named “---------------------------------------” for a
period of ------------------- year(s) effective from ------------------- to ---------------for ---
---------- (the reasons to be mentioned).

Dated this day of 20-- Signature


Name Designation Seal

Duly Authorized to sign bid for and on behalf of _

Note:

1. This letter of bid should be on the letterhead of the Bidder and should be
signed by a person competent and having the authority to bind the Bidder. The
said document conferring authority upon the person should be submitted by
the Bidder along with the LOB. If the said document conferring the authority is
Article of Association of Company, Partnership Deed of a Registered Firm or
any resolution of the company, then the notarized copy of the same should be
uploaded. In other cases, the letter of authority should be a Power of Attorney
sufficient to bind the bidder.

2. Power of Attorney should be on non-judicial stamp paper and sufficiently stamped.

3. Signature & Seal of the PUBLIC NOTARY In case the person who has signed LOB is not
bidding himself and has authorized another person whose DSC is mapped in the name
of bidder, to bid online on his behalf, then the further authorization on non-judicial
stamp paper duly notarized (as per Annexure-D) by the person signing the LOB in
favour of person bidding online is required to be uploaded.

Date: Signature with seal


Place: Name of the Partner
Membership No
Name of the Firm
Firm Registration No.

Page 25 of 39
Annexure - D

Format for Authorisation to DSC holder Bidding Online by the person who has

signed Letter of Bid

(On NON JUDICIAL STAMP PAPER)

We do hereby authorise M/s. /Mr… ......................................................................... Address


………………………………….. whose DSC is mapped in the name of the bidder, for online
bidding on behalf of us for Tender No. ………. dated …… invited by NCL on
https://coalindiatenders.nic.in.

Name, Signature & Seal of the person who has signed Letter of Bid

And is Authorising the DSC Holder for online bidding.

Name, Signature & Seal of the DSC Holder having DSC mapped in the name of
the bidder, Authorized for online bidding

Page 26 of 39
Annexure-E

Selection criteria for engaging Auditors for Northern Coalfields Limited


SL. No. CRITERIA BASIS OF MARKS MAXIMUM
MARKS
1 Experience of the Firm: 3 mark per year (fraction of the year to be 15
Year of the establishment of the audit ignored)
firm and for each year’s experience they
would get 3 marks. Shall be reckoned
from the date of joining of an existing
partner with the Firm and having the
longest association with the firm.

2(i) Number of full time partners / Proprietor 4 marks for each partner/proprietor who is 10
having experience in practice in the ACA/ACMA.
firm/Limited Liability Partnership, who is 5 marks for each partner/proprietor who is
in the firm as on 01.01.2024 and FCA/FCMA.
continuing thereafter.

2(ii) Number of full time partners /proprietor 3 marks for each partner/person having 5
and full time qualified person having DISA/CISA
experience in practice in the firm/
Limited Liability Partnership having
DISA/CISA who is in the firm as on
01.01.2024 and continuing thereafter.

3. Number of full time qualified assistants 4 marks for every qualified assistant 15
who is an ACA/ACMA and is working with
the firm as on 01.01.2024 and continuing
thereafter.

4 Number of full time semi-qualified 3 mark per semi-qualified assistant 10


assistants (Inter Cost/ Inter Chartered -
IPCC - both group) & is working full time
with the firm as on 01.01.2024 and
continuing thereafter.

5 Experience of the firm in conducting 2 marks per year per entity. 25


(A) Statutory/Internal Audit in
PSU/Govt. Companies/Listed
Companies
(B) Statutory/Concurrent audit in
PSU Banks,
(C) Physical verification of Stores &
Spares/Fixed assets /Perpetual
inventory audit/Road sale audit or
coal sale audit etc. in PSU/Govt.
Companies/Listed Companies
Page 27 of 39
6 Audit firms having Registered 20
Office/Branch Office within the state as
on 01.01.2024 and continuing thereafter,
wherein the Head quarter of the
Northern Coalfields Limited is situated or
is having its mining operation. (Madhya
Pradesh/Uttar Pradesh)

TOTAL MARKS 100


Note:

1. In case of tie in the marks scored, firm having seniority w.r.t. “Experience of the Firm” (As per SI. No. 1 of
Selection criteria.), will be preferred. If still there is a tie in the marks scored, firm having highest score
with respect to S.No. 5 of selection criteria will be given preference. Again if the tie persists, then Sl no
3 will be given preference.
2. Fraction of the year to be ignored while evaluation against Sl.no. 1 to Sl.no. 6.

3. The cutoff date will be 01.01.2024 and continuing thereafter with respect to selection criteria (Sl.no. 1 to Sl.no. 4 and
Sl.no.5).

4. The appointment letter/work order for the F.Y.2023-24 will not be considered for evaluation.(Sl.no.5 of the selection
criteria)

5. A firm which had been appointed as Internal Auditor/Cost Auditor/Statutory auditor/stores & spares and fixed assets
as well as road sale auditor in NCL for a period of three years consecutively (i.e. F.Y. 2020-21 to F.Y. 2022-23) would
not be considered for appointment for next two years due to cooling off period.
6. Audit firms appointed for Internal Audit, Statutory Audit and Cost Audit at CIL and its Subsidiaries for the F.Y.2023-24
will not be considered for appointment.

7. Expression of Interest (EoI) of audit firms, who had previously refused to accept the appointment of audit of NCL
during F.Y. 2020-21 to F.Y. 2022-23, will not be considered for appointment.

8. Appointment of smaller audit firms of Cost Accountants/Chartered Accountants having two or less partners shall
only be eligible.
9. The audit firms which secures highest marks in the descending order of merit list shall be allotted audit work viz.
physical verification of stores, spares and fixed assets and road sale audit for the F.Y.2023-24 accordingly, which
shall only be reckoned as per the chronological order shown in the table placed at Sl no E under the head Audit
Fee.
10. Reserve Panel: After appointment of fifteen audit firms as per the merit list, the rest of the ten audit firms in their
descending order of marks secured will be placed in the reserve panel.

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 28 of 39
Annexure-I (Audit Coverage)

Sl.No Physical verification of Stores & Spares, Obsolete & non-moving stock and Audit
Scrap Material Observation
1 To report whether the opening balances in the relevant Kardex/Bin cards/stores ledger
of the current year has been verified from the audited physical and book balances
statement of the previous year. If not tallied, should be reported. The physical
verification shall be done at Central/Regional Stores as well as Site/Colliery stores
including diesel & lubricants depot.
2 To examine and report whether all receipts and issued during the intervening
period(Period of actual date of Physical verification from 1st January’2023 to
31st December’2023) were duly entered into the Bin Cards/Kardex/Store ledger
and verify the same with basic records. Deviations, if any, on such examination
should be reported.

3 To examine and report whether derived physical balances (with due


adjustment with all receipts and issues after the intervening period) as on 31st
December’2023 is tallied with Kardex /Bin cards/Stores ledger as on 31st
December’2023.In case of deviation, item wise discrepancies should be
reported to Depot officer for verification and acceptance. Copy of such report
shall also be submitted to Staff officer (MM) and Area Finance Manager of the
concerned project/unit. Reconciliation for the difference to be done by the
stores auditor.
4 List of stores and spares for which no D.T.R. / D.R.R. has been prepared as on
date of physical verification is to be submitted separately with reason thereof.

5 To report the status of recovery of store materials issued on loan, if any, to the
employees and contractors.
6 Age wise insurance claims lodged with insurance company for shortage/
damaged materials received in stores and their current status should be
submitted.
7 Considering the quantity, value, diversity of physical storage & declining
% of closing stock, ABC analysis will be as follows :
Items Cost per unit % of Physical Verification
“A” Rs 10,000/- & more 100 %

Safety Items All Items 100 %


“B” Rs 2000/- to 9999/- 25 %
“C” Less than Rs 2000/- 5%

The above details of % covered in physical verification in terms of ABC


analysis should be ensured as per Annexure-II(A)

8 Details of percentage covered in physical verification in terms of ABC


Analysis including Safety items are to be mentioned in the report as
follows:-

Items Quantity Value


% covered % covered
Page 29 of 39
A
Safety Items
B
C
9 To examine and report whether any stores and spares verified physically
but no entry was found in the Bin card/Kardex/stores ledger. If so,
detailed of such stores and spares to be furnished with the explanation
of the management.
10 To report whether the materials lying in the stores
a) are properly stored to avoid damage and pilferage,
b) of similar nature are stored together,
c) are segregated between stores and spares which are
regularly consumed and stores and spares which are
insurance in nature i.e. not regularly consumed.

11 To report whether FIFO basis is followed in case of physical issue of


stores and spares.
12 To report whether the system of ABC analysis of stores is followed.
Excess stock of ‘A’ category items and length of time of such excess stock
is also to be reported.
13 To report whether the stores and spares physically verified are found at
the location mentioned in the software system
14 To report about the treatment made in the Bin cards/Kardex/stores
ledger regarding shortfall in the physical balances. All the stock and stores
are to be physically counted even if quantity in Kardex is nil. Nil card having
physical balance will be paid
15 To examine on sample basis and report whether Kardex/Bin cards/stores
ledger are maintained properly and all receipts/issues are duly
authenticated. Any deviations should be reported in detail.
16 To comment on the action taken report submitted by the management
on discrepancies given in the earlier reports.

17 Procedure for physical verification of obsolete and non-moving items :


a) To examine the report prepared by the company for the
obsolete/non-moving idle stores and spares lying beyond three
years and five years (if any).This is to be reported separately
grouping the items under type of materials like rubber (including
tyre and tube), iron and steels, lubricants, battery etc.
b)Reports should also indicate the last date of movement of the
indented items.
c) To report whether full provision of obsolete stock is made.
d)Proper categorization of obsolete and non-moving items.
e) Separate and proper storage of obsolete and non-moving items.
f) Proper and timely disposal of obsolete stores.
g) Intimation to other mines and subsidiaries before declaring any
stores items as obsolete

18 To examine the report prepared by the company on the maintenance of


scraps materials. The report should indicate the value and quantity scrap
sold and the items wise grouping of scrap indicating the opening
balances, addition, disposal and closing balances.

Page 30 of 39
19 It should be ensured that at least 70 % of value of closing stock should be
verified by Store Auditor
20 The following criteria may be considered for ascertaining Obsolete &
Non Moving Stores
a) Where there is no movement in the stock of Stores & Spares in the Bin
for a period of 5 years & more may be treated as “Obsolete Stock”
b) Where there is no movement in the stock of Stores & Spares in the Bin
for a period of 3 years & more may be treated as “Non Moving Stock”

21 The following criteria may be considered for physical verification of Slow


Moving /Obsolete Stock:-
a) 100 % physical verification for “A” category Obsolete / Slow Moving
items by Store Auditor,
b) 20 % physical verification for “B” category Obsolete / Slow Moving
items by Store Auditor on rotation basis.

22 The details of Scrap Materials are to be maintained by store officer


regularly. The Store Auditor will examine the records of scrap & will
submit his report in the prescribed format as per

23 Any other suggestions and comments

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 31 of 39
Annexure-II (Audit Coverage)

Sl.No Physical verification and reconciliation of fixed assets Audit


Observation
1 Assets appearing in Assets register
2 Assets received from other projects/Subsidiary Company not entered in
Asset Register,if any.
3 Assets under commissioning/erection
4 Assets in Stores
5 Assets/ Surveyed-off equipments not yet disposed off
6 To reconcile physically verified all assets with records in Assets
Register/Plant Cards maintained by the Accounts Office of the Project.
7 To prepare separate lists of (i) Assets entered in the Assets Register and
physically available, (ii) Assets physically available but not appearing in
the Assets Register and (iii) Assets appearing in the Assets Register but
not physically available (iv) Assets in Stores and (v) Assets under
erection/commissioning.
8 To reconcile P&Ms in Stores, under erection and under inter-area and
inter-company transfer with Store records, job cards and accounts
maintained by the Area Accounts Office, as the case may be
9 Any other suggestions and comments

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 32 of 39
Annexure-III (Audit Coverage)

Sl.No Road Sale Audit Audit


Observation
1 Whether the despatches to the cash sale parties have been made as per
authorised delivery orders (D.O)/Allotment orders (A.O) from the
authorised officials? If not, what is the lacuna?

2 (i) Whether despatches to the cash sale parties have been allowed only
against receipt of payments in advance for the entire quantity under
delivery. Deviation in above, if any, noticed on examination, should be
reported giving relevant details with reasons as ascertained in the
course of audit scrutiny.
(ii) Whether correct amount has been deposited and a cash receipt has
duly been issued after confirmation of the credit from the Bank for
the amount of A.O./D.O. before issue of A.O./D.O.?
(iii) Whether all receipts have properly been accounted for

3 (i) Whether valuation of the A.O. /D.O. is correct?


(ii) Whether A.O. /D.O. quantity is within the limit of sanctioned
quantity?
(iii) Whether grade and colliery as mentioned in A.O. /D.O. is within the
scope of RRO?
(iv) Whether there is validity of A.O. before issue of D.O.?

4 Whether lifting of coal has been made within the validity period of
A.O./D.O.?

5 Whether all the despatches have been properly entered into in the
Despatch Register immediately and serially?

6 (i)Whether the despatches have been properly billed?


(ii) Whether billing has been made within next 24 hours from the receipt
of the despatched documents. Deviation, if any, in above is noticed, and
reasons for the same to be indicated in the Report.
(iii) Whether the bills so raised are timely forwarded to the concerned
parties
(iv)Whether proper reconciliation is being made between A.O./D.O.

Page 33 of 39
quantity and despatch quantity? Also Bill Register/Bill is being
reconciled with the lifted quantity of D.O.

7 Whether refunds are made after observing all formalities?

8 Whether Reconciliation of despatches (party wise & D.O. wise) with bill
during 2023-24 has been done?

9 Whether all despatch invoices are reconciled regularly at monthly


intervals with reference to the corresponding entries in the despatch
register, in order to be certain that all despatches have been invoiced.

10 (i) Whether the Sundry Debtor Ledger/Advance Deposit from


Customer's Ledger is up-to-date along with all details of bills?
(ii) Checking of Sundry Debtor/Advance Deposit from Customer's Ledger
balance in Accounts as on 31.03.2023 and details thereof as per Sundry
Debtors Schedule and the Register.

11 Checking of A.O./D.O. register maintained in Area


12 Checking of lifting of coal/dispatch register in Colliery, Weigh Bridge etc.

13 Whether grade and colliery diversions have got proper Authorization?

14 Any other suggestions and comments

Date: Signature with seal


Place: Name of the Partner
Membership No.
Name of the Firm
Firm Registration No.

Page 34 of 39
Annexure-II(A)

Statement of stock of stores and spares as on 31st December’2023 (to be prepared by management)
“A” Category items Name of Area:- Name of Col/Unit:- Name of store keeper:
Slno Descripti Materi Materi Unit Date Physical Less:Rece Add:Issue Derivedphysical Kardex Difference Reason for Remarks of Audotors to Auditors to Comments/respo
on al al part Of Measurement of Balance as ipt after after 31st balance as on 31st balance difference the auditor comment whether comment-whether nse of the
Of Code no Verific on date of 31st Decembe December’2023 as on 31st if any any adjustment is the items are convernedofficeer
material ation Verification Decembe r’2023 Decembe required in the properly stored and of the company
r’2023 r’2023 books of accounts seggrated on defeciency

Signature of store keeper Signature of HOD Signature of store auditor

Statement of stock of stores and spares as on 31st December’2023 (to be prepared by management)

“B” Category items Name of Area:- Name of Col/Unit:- Name of store keeper:
Slno Descripti Materi Materi Unit Date of Physical Less:Rece Add:Issue Derivedphysical Kardex Difference Reason for Remarks of Audotors to Auditors to Comments/respo
on al al part Of Verificati Balance as on ipt after after 31st balance as on 31st balance difference the auditor comment whether comment-whether nse of the
Of Code no Measureme on date of 31st Decembe December’2023 as on 31st if any any adjustment is the items are convernedofficeer
material nt Verification Decembe r’2023 Decembe required in the properly stored and of the company
r’2023 r’2023 books of accounts seggrated on defeciency

Signature of store keeper Signature of HOD Signature of store auditor

Statement of stock of stores and spares as on 31st December’2023 (to be prepared by management)

“C” Category items Name of Area:- Name of Col/Unit:- Name of store keeper:
Slno Descripti Materi Materi Unit Date of Physical Less:Rece Add:Issue Derivedphysical Kardex Difference Reason for Remarks of Audotors to Auditors to Comments/respo
on al al part Of Verificati Balance as on ipt after after 31st balance as on 31st balance difference the auditor comment whether comment-whether nse of the
Of Code no Measureme on date of 31st Decembe December’2023 as on 31st if any any adjustment is the items are convernedofficeer
material nt Verification Decembe r’2023 Decembe required in the properly stored and of the company
r’2023 r’2023 books of accounts seggrated on defeciency

Signature of store keeper Signature of HOD Signature of store auditor

Page 35 of 39
Annexure-II(B)

Statement of physically verified stores & spares not entered in bin card/kardex

Name of Area:

Name of Store Depot:

Name of store keeper:


Slno Description Materi Material Unit Verification date Physical Balance Reasons for non Remarks of the Comments/response
Of material al part no Of Measurement entry auditors if any of the concerned
Code officer of the
Company on
deficiency

Signature of store keeper Signature of HOD Signature of store auditor

Page 36 of 39
Annexure-II(C)

Physically verified stores& spares(slow/non-moving) lying for more than 3years but less than 5 years(sample basis)

Name of Area:

Name of Store Depot:

Name of store keeper:


Slno Description Materi Material Unit Last date of Last date of Balance as on Difference Remarks of Manageme
Of material al part no Of receipt issue December’2023 Auditors nt response
Code Measuremen
t

Signature of store keeper Signature of HOD Signature of store auditor

Page 37 of 39
Annexure-II(D)

Physically verified stores& spares(obsolete) lying for more than 5years (sample basis)

Name of Area:

Name of Store Depot:

Name of store keeper:


Slno Description Materi Material Unit Last date of Last date of Kardex Balance Difference Remarks of Manageme
Of material al part no Of receipt issue as on Auditors nt response
Code Measuremen December’2023
t

Signature of store keeper Signature of HOD Signature of store auditor

Page 38 of 39
Annexure-II(E)

Statement of item wise grouping of scrap as on 31st December’2023.

Name of Area:

Name of Store Depot:

Name of store keeper:


Disposal during period
Slno Description Materi Material Unit Opening Addition QTY Amount(Rs) Closing
Of material al part no Of balance during the Balance
Code Measuremen Qty period Qty
t Qty

Signature of store keeper Signature of HOD Signature of store auditor

Page 39 of 39

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