Internal audit

Request for Proposal (RFP) for Preparation of Internal Audit Manuals for Department of Finance

PPP Cell, Department of Planning, Government of Uttarakhand Page 1

April 21, 2009

REQUEST FOR PROPOSAL (RFP) FOR PREPARATION OF INTERNAL AUDIT MANUAL, TRAINING MANUAL, DESIGNING STRUCTURE OF INTERNAL AUDIT FUNCTION AND AUDIT PROGRESS MONITORING SYSTEM IN THE GOVERNMENT OF UTTARAKHAND.

1. Introduction The state of Uttarakhand was carved out of Uttar Pradesh (U.P.) and formed in November 2000. In undivided U.P. there was an internal audit setup for local funds, panchayats and cooperatives. The same type of setup currently exists in Uttarakhand wherein some internal audit work is carried out for local funds, panchayats and cooperatives but at the department levels the internal audit is practically non-existent.

The current situation of not having a structured internal audit setup has risen due to non allocation of sufficient audit staff from U.P. at the time of formation of the Uttarakhand. As a result coverage/frequency of the internal audit process is inadequate. In this scenario, the Government of Uttarakhand had no other alternative but to outsource the internal audit tasks to practicing chartered accountants and other professional bodies, in recent years.

The Government of Uttarakhand proposes to re-engineer and improve its existing Internal Audit system to make it more effective and efficient and capable of evaluating the effectiveness of the programs/systems of various departments of Government of Uttarakhand.

The purpose of the Internal Audit Manual is to outline the scope of Internal Audit function and to provide guidelines, procedures and methods for the internal audit department to conduct and facilitate internal audits across all departments of Government of Uttarakhand.

2. Request for Proposal (RFP)

Government of Uttarakhand would like to invite proposals from reputed Management Consultants to design and develop an Internal Audit manual, Training Manual and organizational structure for the Internal Audit function.



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3. Scope of Work

a) Study Current System

The Consultant would study the “AS IS” scenario of the current internal audit setup in the state and evaluate the “gaps” for improving the system in line with industry and international best practices.

b) Preparation of Draft Internal Audit Manual

The Consultant would be responsible for preparing internal audit manual for various tiers of State Government – Department, District, Block, Gram Panchayat, Nagar Panchayat, other local fund entities like Universities, Development Authorities etc conforming to regulatory framework and drawing from best practices. The Consultant would prepare detailed Internal audit manuals indicating policies, procedures, methods, formats, work instructions, Audit standards, Quality standards etc.

The Consultant would prepare Internal Audit manual for conducting audit with varying objectives within various government departments such as:

• Financial Audit

• Program Performance Audit

• Risk Assessment audit including Information Technology (IT) The Consultant would incorporate, in the internal audit manual, the International Best Practices and Guidelines formulated by professional bodies such as Institute of Internal Auditors, Committee of Sponsoring Organizations of the Treadway Commission (COSO), Comptroller and Auditor General of India (CAG) etc.

c) Dry Run the Internal Audit Processes

The Consultant would undertake a dry run of the internal audit processes as per the draft audit manual, in three (3) departments, in each category of audit. The target departments would be identified in consultation with Finance Department.

d) Finalize the Audit Manuals

Based on the inputs and learning from dry run of audit processes, the audit manuals would be finalized.



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e) Training Manual

The Consultant would develop Training manual based on finalized audit processes to build capacity within the government departments. The training manual would include training calendar, participants’ profile, topics, training methodology etc.

The Consultant would prepare continuous training plan and calendar to ensure that the state government officials in the internal audit function to keep abreast with the latest methodology, techniques and guidelines in the field of internal audit.

f) Structure of Internal Audit Function

The Consultant would assess the volume of internal audit work within the state government departments, its autonomous entities and the size of the Internal Audit department that would be needed to operate and manage the internal audit activities.

The Consultant would advise on the level of qualification, experience and skills sets required for the government officials in the internal audit function. The Consultant would design the organizational structure of the proposed Internal Audit function including composition of suitable committees such as Audit Committee, high level committee etc along with the role, responsibilities and authorities at various levels. The Consultant would advise on optimum arrangement of having an internal audit setup within the government vs outsource arrangement or a combination of both. The Consultant would prepare guidelines for empanelment of Internal Auditors for outsourcing the internal audit tasks.

g) Audit progress monitoring system

The Consultant would design and develop a computerized audit progress monitoring system (audit plan to closure of audit para) which would include functional requirement specification (FRS), software requirement specification (SRS), suggested database, input/ output formats, master data structure etc.



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4. Technical and Financial Capability

The applicants are expected to meet the following minimum pre-qualification criteria. Applicants failing to meet these criteria or not submitting requisite proof for supporting pre-qualification criteria are liable to be rejected.

S No

Criteria Whether Met

Reference Details

1 The bidder should be a company/firms – proprietary or partnership/societies registered in India and operating for the last five years

Yes / No Copies of certificate of incorporation/ partnership deed.

2 The bidder should have a minimum annual average turnover of Rs. 10.00 Crore in the last three years (FY08, FY07 and FY06)

Yes / No Extract of the audited Profit / Loss Statement and Balance Sheet

3 Out of the total turnover, a minimum of Rs 3.00 Crores should be from management accounting, process/performance auditing (other than statutory auditing) and management consulting

Yes / No Certificate from the Statutory auditor.

4 The company should have at least 30 full time professionals on the rolls of the company

Yes / No Self Certification by the authorized signatory

5 The Bidder should have completed at least three Projects of preparing accounting/ auditing manuals for a government department/PSUs for a total consulting value of over Rs 50.00 lakhs in the last three years

Yes / No Copies of Work Orders

The conditions (2), (3) and (4) will not apply to Public Sector Undertakings, Statutory Authorities, government Societies and educational institutions (including universities) which are under the administrative control of state and central government. The conditions (1) and (5) will however apply to these organizations.



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Evaluation Criterion

a) Overall Experience of Firm 40

S No Description Marks

1 Number and Complexity of Projects (Management accounting, Auditing, Management consulting etc) handled in last three years

− Private Sector

− Government/PSU

10 10

20

2 Number of Internal Audit Manuals prepared 20

b) Approach and Methodology 30 S No Description Marks

1 Understanding the Scope 10

2 Detailed approach and methodology 5

3 Work Plan and Staffing Schedule 5

4 Plan for Dry run 5

5 Contents and coverage in the manuals 5

c) Team Profile 30 S No Description Marks

1 Experience of Principal Consultant

greater than 20 years = 10 15 to 20 years = 05

Less than 15 years = 0

10

2 Experience of Project Manager greater than 10 years = 10

6 to 10 years = 5

Less than 6 years = 0

10

3 Average experience of Team members greater than 8 years = 10 6 to 8years = 7

4 to 6 years = 5

10



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d) The financial bid of applicants securing 75 or more marks would only be opened.

e) The bidder offering the lowest financial proposal would be declared the

successful bidder.

5. Time Frame

The selected consultant would complete the entire assignment within 18 Weeks in the following manner.

i. Draft Report on Internal Audit Manual = 10 Weeks ii. Dry Run as indicated in Para 3(c) = 4 Weeks iii. Finalization of Internal Audit Manual = 4 Weeks

The Training Manual, Organizational Structure and Audit progress monitoring system would be completed simultaneously within 16 Weeks.

6. Deliverables The Consultant would provide five (5) copies of all deliverables (reports, formats etc) in bound format and two (2) copies in soft form in CD. The Consultant would furnish an undertaking that the draft and final reports will not be used, given, disclosed, displayed, reproduced, circulated to any person or organization without the written permission of Government of Uttarakhand.

7. Bid Security

7.1 Proposals would need to be accompanied by a Bid Security for an amount of Rs 2.00 Lakhs only (Rs Two Lakhs only) in the form of a bank draft drawn on any Scheduled Bank.

7.2 The Bid Security shall be kept valid for a period of 90 days from due date of

the RFP and would be required to be extended if so required by Government of Uttarakhand.

7.3 The Bid Security shall be returned to unsuccessful Bidders within a period of thirty (30) days from the date of announcement of the Successful Bidder. The Bid Security submitted by the Successful Bidder shall be released upon furnishing of the Performance Security in the form and manner to be stipulated in the Draft Concession Agreement.



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7.4 The Bid Security shall be forfeited in the following cases:

(a) If the Bidder withdraws its Proposal during the interval between the

Proposal Due Date and expiration of the Proposal Validity Period and

(b) If the Successful Bidder fails to provide the Performance Security within the stipulated time or any extension thereof provided by Government of Uttarakhand.

8. Performance Security

8.1 The Successful Bidder shall furnish Performance Security equivalent to 30% of the value of the contract by way of an irrevocable Bank Guarantee issued by a scheduled nationalised bank located in India in favour of Government of Uttarakhand, as required under the Concession Agreement.

8.2 The Performance Security shall be in the form of an irrevocable Bank Guarantee in favour of Government of Uttarakhand, as per the format set out in Attachment G. The Performance Security would be valid for the entire project term till the acceptance of report(s) by the Expert Committee appointed by Government of Uttarakhand.

8.3 The Performance guarantee shall be forfeited and en-cashed in the following

cases:

(a) If the successful bidder withdraws from the assignment midway during the project term

(b) If the progress of work is found out to be inadequate midway through

the project timeline (i.e. by 8th week), indicating non achievement of target within the stipulated time.

(c) Any other act or acts of the successful bidder which renders the assignment incomplete and Government of Uttarakhand establishes sufficient reasons to forfeit the performance guarantee.



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9. Pre Bid Conference

9.1 To clarify and discuss issues with respect to the assignment and the RFP Document, Government of Uttarakhand may hold Pre-bid conference.

9.2 Prior to the Pre-Proposal meeting/s, the Bidders may submit a list of

queries and propose deviations, if any, to the Project requirements and/or the Draft Concession Agreement. Bidders must formulate their responses and forward the same to Government of Uttarakhand at least seven (7) days prior to the meeting. Government of Uttarakhand may amend the RFP Document based on inputs provided by Bidders that may be considered acceptable in its sole discretion.

9.3 Bidders may note that Government of Uttarakhand will not entertain any

deviations to the RFP Document at the time of submission of the Proposal or thereafter. The Proposal to be submitted by the Bidders will be unconditional and unqualified and the Bidders would be deemed to have accepted the terms and conditions of the RFP Document with all its contents including the Draft Concession Agreement. Any conditional Proposal shall be regarded as non-responsive and would be liable for rejection.

9.4 Government of Uttarakhand will endeavour to hold the meeting as per

Schedule of Bidding Process. The details of the meeting will be separately communicated to the Bidders.

9.5 Attendance of the bidders at the Pre-Proposal meeting is not mandatory.

However, subsequent to the meeting, Government of Uttarakhand may not respond to queries from any bidder who has not attended the Pre bid conference

9.6 All correspondence / enquiries should be submitted to the following in writing by post / courier:

The Director of Treasury and Finance Services and State Internal Auditor 23 Laxmi Road, Dalanwala, Dehradun – 248 001.



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9.7 No interpretation, revision, or other communication from Government of Uttarakhand regarding this solicitation is valid unless the same is given in writing. Government of Uttarakhand may choose to send to all Bidders, written copies of responses of Government of Uttarakhand, including a description of the enquiry but without identifying its source to all the bidders.

10. Payment Terms and Schedule

A pre-receipted bill in triplicate in the name of The Director Treasury and Finance Services and State Internal Auditor, 23 Laxmi Road, Dalanwala, Dehradun – 248001 shall be submitted duly certified by the Expert Committee as nominated by finance department as per the following schedule:

S No Activity % amount to be released

1 On submission of draft report 30

2 On completion of Dry Run 20

3 On Submission of Training Manual 10

4 On Submission of Structure 10

5 On Submission of all final reports 10

6 On Acceptance by Expert Committee 20

11. General Conditions

a) The Government of Uttarakhand may invite the applicants to present their “Approach and Methodology” in a “power point presentation” format to the Bid Evaluation Committee, after the receipt of their responses by the stipulated date, to evaluate the proposal.

b) The applicant shall bear all costs associated with the preparation and submission of its proposal and Government of Uttarakhand will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process.

c) The applicant is expected to examine all instructions, forms, terms and conditions in the RFP document. Failure to furnish all information required by the RFP or submission of an application not substantially responsive to the RFP documents in every respect will be at the applicant’s risk and may result in the rejection of his application.

d) The application, as well as all correspondence and documents relating to the application exchanged by the applicant and Government of Uttarakhand shall be written in English language.



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e) The contents of the application shall be typed or written in indelible ink and shall be signed by the person duly authorized in all pages of the application.

f) The applicant shall submit a General Power Of Attorney issued by a Resolution passed by the Board of Directors of the Applicant duly authenticated by putting affixing a Company Seal in favor of the Authorized Signatory of the Application indicating that the specified person has the authority to sign the application, and confirming that the application is binding upon the applicant during the full period of its validity.

g) The Bidder shall seal the Technical Proposal and the Financial Proposal in

separate envelopes, duly marking the envelopes as “TECHNICAL PROPOSAL” and “FINANCIAL PROPOSAL”. These envelopes shall then be sealed in an outer envelope.

h) Two copies of the application should be submitted (one original and one copy). The envelope shall be sealed and superscribed as “Application for preparation of Internal Audit Manuals for Government of Uttarakhand”. If any envelope is not sealed and marked as specified above, Government of Uttarakhand will not assume any responsibility for the application misplacement or loss of documents.



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i) The following documents should be submitted as part of the response to this RFP Technical Proposal

i. Letter of Application, duly completed and signed by the Applicant (as per Attachment Form A)

ii. General Information about the Applicant (as per Attachment Form B) with Company profile, Memorandum & Articles of Association/ partnership deed, etc.

iii. CVs of the proposed team as per attachment form C

iv. Description of Approach, Methodology and Work Plan for Performing the Assignment (Attachment D)

v. Bid Security as per attachment F

vi. All the information required as per Para (4).

vii. Cost of RFP Document in the form of a bank draft in favor of “The Director of Treasury and Finance Services and State Internal Auditor” of Rs 1,000.00 (Rs One Thousand Only) or Copy of the Receipt in case the hard copy of the RFP has been purchased from the Office.

Financial Proposal

i. The Financial Proposal as per Attachment E

j) Applications must be submitted at the following address and not later than the 15:00 hours IST on 18th May 2009.

The Director of Treasury and Finance Services and State Internal Auditor 23 Laxmi Road, Dalanwala, Dehradun – 248 001.

k) Government of Uttarakhand may, at its discretion, extend this deadline for

submission of applications by amending the RFP documents, in which case all rights and obligations of Government of Uttarakhand and applicants will thereafter be subject to the deadline as extended.



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l) If the response to the RFP is not delivered within the deadline specified in above, the same shall be declared late and shall not be accepted.

m) Government of Uttarakhand reserves the right to accept or reject any application, and to annul the bidding process and reject all applications, at any time during the bidding process, without thereby incurring any liability to the affected applicant(s) or any obligation to inform the affected applicant(s) of the grounds for Government of Uttarakhand’s action.

n) Any effort by the applicant to influence Government of Uttarakhand in its

decisions or evaluation of application may result in the rejection of its application.

o) The RFP document can be downloaded from http://gov.ua.nic.in/finance. The cost of RFP document is Rs 1,150.00 (Rs One Thousand One hundred fifty Only), inclusive of VAT. The proposals must accompany with cost of RFP document in the form of a bank draft in favor of “The Director of Treasury and Finance Services and State Internal Auditor” of Rs 1,150.00 (Rs One Thousand Only) – Para 12(i - vii). The bidders may also obtain a hard copy of the RFP from the office of Director of Treasury and Finance Services and State Internal Auditor. The bidders purchasing the hard copy of the RFP must attach the copy of Receipt along with the proposal.

p) Proposals received without the cost of RFP document will be summarily rejected.



April 21, 2009

Attachment Form A Letter of Application {To be printed on the Letterhead of the Applicant, including full postal address, telephone, faxes and e-mail address} Date: The Director of Treasury and Finance Services and State Internal Auditor 23 Laxmi Road, Dalanwala, Dehradun – 248 001. Subject: Preparation of Internal Audit Manuals Sir, Having examined the RFP documents and your requirements, the receipt of which is hereby acknowledged, we, the undersigned, offer to accept the proposal in full conformity with the said RFP documents. We are enclosing herewith other requisite information in forms and attachments as specified in the EOI document. We declare that the information stated above and enclosed attachments is complete and absolutely correct and any error or omission therein, accidental or otherwise, will be sufficient for the Government of Uttarakhand to reject our application. We understand that you are not bound to accept this or any application you may receive. Dated this _____ day of ___________ 2009 (Name & Signature of Authorised Signatory)______________________ In the capacity of _____________________ (position) duly authorized to sign this application for and behalf of _____________________________ (name of applicant) _____________________________________ (Address)



April 21, 2009

Attachment Form B General Information about the Applicant

1. Full Name of the Applicant firm: (in Block Letters)

2. Applicant’s Constitution (Public Limited Co./ Pvt. Ltd. Co.)

3. Applicant’s Registered Office and Place of Business

4. Applicant’s Telephone No. Fax No. E-mail address and web site

5. Name & Address of Directors of the Company (Provide names, office &

residence addresses, Telephone no.s, fax no.s, e-mail, profession / Business engaged in etc.

6. Company profile giving details of current activities, background of promoters

and management structure including evidence of incorporation, MOA and AOA/ partnership deed.

7. Please provide detail of assignments completed on preparing manuals/systems for management accounting, internal auditing etc. Please provide details separately for assignments of government departments, PSUs, International bodies and funding agencies.



April 21, 2009

Attachment Form C List of Key CVs The List of CVs to be provided as part of the Bid

• Principal Consultant/s (at least 2)

– Should have at least 10 years of experience of leading management consulting

projects

– Should have extensive experience of working with Central/State Governments

and PSUs

– Should have led assignments in areas such as Management Accounting,

Auditing, Systems design and implementation, Project/Programme Management

• Project Manager/s (at least 2)

– Should have at least 6 years of experience of leading leading management

consulting projects

– Should be a Chartered Accountant/CPA

– Should have extensive experience of working with Central/State Governments

and PSUs

– Should have led assignments in areas such as Management Accounting,

Auditing, Systems design and implementation, Project/Programme Management

• Team Members ( at least 4)

– Should have at least 4 years of experience in the areas of Management

Accounting, Auditing, Systems design and implementation, Project/Programme

Management

Consultant Principal Project Manager Team Member

Qualifications Essential: Chartered Accountant/CPA. Desirable: MBA

Work Experience 10 years of which the

last 2 years should be

in the capacity of

Principal Consultant

6 years of which the

last 2 years should

be in the capacity of

Project Manager

4 years on similar

projects.

Number of similar

Projects handled

Five

Of which one in the

capacity of Principal

Consultant

Three

Of which one in the

capacity of Project

Manager

Two



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Attachment Form D

Description of Approach, Methodology and Work Plan for Performing

the Assignment

Approach, methodology and work plan are key components of the Technical Proposal.

You are suggested to present your Technical Proposal in the following topics.

a) Understanding the Scope b) Detailed approach and methodology c) Work Plan and Staffing Schedule d) Plan for Dry run e) Contents and coverage in the manuals

Understanding the Scope: In this chapter you should explain your understanding of the objectives of the assignment. Detailed approach and methodology: In this chapter you should explain the approach to the services, methodology for carrying out the activities and obtaining the expected output, and the degree of detail of such output Work Plan: In this chapter you should propose the main activities of the assignment, their content and duration, phasing and interrelations, milestones (including interim approvals by the Client), and delivery dates of the reports. The proposed work plan should be consistent with the approach and methodology, showing understanding of the TOR and ability to translate them into a feasible working plan. A list of the final documents, including reports and formats to be delivered as final output, should be included. Plan for Dry Run: In this chapter you should explain the dry runs to be conducted and corrections/ bottlenecks to be captured for incorporation in the final reports. Content and Coverage in the manuals: In this chapter you should explain the topics that would be covered in the final outputs and feasibility of using the same during actual audits.



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Attachment E

Format for Financial Proposal

The Director of Treasury and Finance Services and State Internal Auditor 23 Laxmi Road, Dalanwala, Dehradun – 248 001. Subject: Financial Proposal for preparation of Internal Audit Manual Sir,

We are pleased to submit our financial proposal for the subject assignment

Item Task Person months Rate per person months

Total (Rs)

Total = Rs ________________ Out-of-pocket expenses = Rs ________________ Service Tax = Rs ________________ Grand Total = Rs ________________



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C A N C E L L E D

Attachment F Format for Bid Security

(To be issued by a Scheduled Bank) B.G. No. __________________________________ dated __________.

This Deed of Guarantee executed at ——————— by ______________ (Name of Bank) having its Head/Registered office at ______________ ______ (hereinafter referred to as “the Guarantor”) which expression shall unless it be repugnant to the subject or context thereof include its, successors and assigns;

In favour of

The Director of Treasury and Finance Services (hereinafter called “DoT&FS”), having its head office at 23 Laxmi Road, Dalanwala, Dehradun – 248 001, which expression shall unless it be repugnant to the subject or context thereof include its, successors and assigns;

WHEREAS

M/s. ______________________ a Company registered under provisions of _________Act, ____(specify the name of the Act under which the Business Entity is registered) having its registered office at ____________ (hereinafter called “the Bidder”) which expression shall unless it be repugnant to the subject or context thereof include its/their executors administrators, successors and assigns, has/have bid for designing and developing Internal Audit manual, Training Manual and organizational structure of Internal Audit function.

A. In terms of Clause 7 of the Request for Proposal Document dated ——— issued in respect of the Project (hereinafter referred to as “RFP Document”) the Bidder is required to furnish to DoT&FS an unconditional and irrevocable Bank Guarantee for an amount of Rs 2.00 Lakhs (Rs Two Lakhs Only)

B. The Guarantor has at the request of the Bidder and for valid consideration agreed to provide such Bank Guarantee being these presents:

NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS: a) The Guarantor, as primary obligor shall, without demur, pay to DOT&FS an amount

not exceeding Rs 2.00 Lakhs (Rs Two Lakhs Only), within 5 days of receipt of a written demand from DOTS&FS calling upon the Guarantor to pay the said amount and stating that the Bid Security provided by the Bidder has been forfeited in terms of Clause 7.4 of the RFP Document.



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b) Any such demand made on the Guarantor by DOT&FS shall be conclusive and absolute as regards the forfeiture of Bid Security and the amount due and payable by the Guarantor under this Guarantee.

c) The above payment shall be made without any reference to the Bidder or any other person and irrespective of whether the claim of DOT&FS is disputed by the Bidder or not.

d) This Guarantee shall be irrevocable and remain in full force for a period of ————

——— months from (date) ________ or for such extended period as may be mutually agreed between DOT&FS and the Bidder and shall continue to be enforceable till all amounts under this Guarantee are paid.

e) The Guarantee shall not be affected by any change in the constitution or winding up of the Bidder/the Guarantor or any absorption, merger or amalgamation of the Bidder/the Guarantor with any other person.

f) In order to give full effect to this Guarantee, DOT&FS shall be entitled to treat the Guarantor as the principal debtor. The obligations of the Guarantor shall not be affected by any variations in the terms and conditions of the RFP Document or other documents or by extension of time of performance of any obligations granted to the Bidder or postponement/non exercise/delayed exercise of any of its rights by DOT&FS against the Bidder or any indulgence shown by DOT&FS to the Bidder. and. the Guarantor shall not be relieved from its obligations under this Bank Guarantee on account of any such variation, extension, postponement, non exercise, delayed exercise or omission on the part of DOT&FS or any indulgence by DOT&FS to the Bidder to give such matter or thing whatsoever which under the law relating to sureties would but for this provision have effect of so relieving the Guarantor.

g) The Guarantor has power to issue this Guarantee and discharge the obligations

contemplated herein, the undersigned is duly authorised to execute this Guarantee pursuant to the power granted under ——————.

IN WITNESS WHEREOF THE GUARANTOR HAS SET ITS HANDS HEREUNTO ON THE

DAY, MONTH AND YEAR FIRST HEREINABOVE WRITTEN. Signed and Delivered by ——————- Bank by the hand of Mr——————- its ——————— and authorised official.



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Attachment G Format for Performance Bank Gaurantee

(To be issued by a Scheduled Bank) B.G. No. __________________________________ dated __________.

This Deed of Guarantee executed at ——————— by ______________ (Name of Bank) having its Head/Registered office at ______________ ______ (hereinafter referred to as “the Guarantor”) which expression shall unless it be repugnant to the subject or context thereof include its, successors and assigns;

In favour of

The Director of Treasury and Finance Services (hereinafter called “DoT&FS”), having its head office at 23 Laxmi Road, Dalanwala, Dehradun – 248 001, which expression shall unless it be repugnant to the subject or context thereof include its, successors and assigns;

WHEREAS

M/s. ______________________ a Company registered under provisions of _________Act, ____(specify the name of the Act under which the Business Entity is registered) having its registered office at ____________ (hereinafter called “the Bidder”) which expression shall unless it be repugnant to the subject or context thereof include its/their executors administrators, successors and assigns, has/have bid for designing and developing Internal Audit manual, Training Manual and organizational structure of Internal Audit function.

C. In terms of Clause 8 of the Request for Proposal Document dated ——— issued in respect of the Project (hereinafter referred to as “RFP Document”) the Bidder is required to furnish to DoT&FS an unconditional and irrevocable Bank Guarantee for an amount of Rs _______Lakhs (Rs _____ Lakhs Only)

D. The Guarantor has at the request of the Bidder and for valid consideration agreed to provide such Bank Guarantee being these presents:

NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS: h) The Guarantor, as primary obligor shall, without demur, pay to DOT&FS an amount

not exceeding Rs _____ Lakhs (Rs _____ Lakhs Only), within 5 days of receipt of a written demand from DOTS&FS calling upon the Guarantor to pay the said amount and stating that the Bid Security provided by the Bidder has been forfeited in terms of Clause 8.3 of the RFP Document.



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i) Any such demand made on the Guarantor by DOT&FS shall be conclusive and absolute as regards the forfeiture of Bid Security and the amount due and payable by the Guarantor under this Guarantee.

j) The above payment shall be made without any reference to the Bidder or any other person and irrespective of whether the claim of DOT&FS is disputed by the Bidder or not.

k) This Guarantee shall be irrevocable and remain in full force for a period of ————

——— months from (date) ________ or for such extended period as may be mutually agreed between DOT&FS and the Bidder and shall continue to be enforceable till all amounts under this Guarantee are paid.

l) The Guarantee shall not be affected by any change in the constitution or winding up of the Bidder/the Guarantor or any absorption, merger or amalgamation of the Bidder/the Guarantor with any other person.

m) In order to give full effect to this Guarantee, DOT&FS shall be entitled to treat the Guarantor as the principal debtor. The obligations of the Guarantor shall not be affected by any variations in the terms and conditions of the RFP Document or other documents or by extension of time of performance of any obligations granted to the Bidder or postponement/non exercise/delayed exercise of any of its rights by DOT&FS against the Bidder or any indulgence shown by DOT&FS to the Bidder. and. the Guarantor shall not be relieved from its obligations under this Bank Guarantee on account of any such variation, extension, postponement, non exercise, delayed exercise or omission on the part of DOT&FS or any indulgence by DOT&FS to the Bidder to give such matter or thing whatsoever which under the law relating to sureties would but for this provision have effect of so relieving the Guarantor.

n) The Guarantor has power to issue this Guarantee and discharge the obligations

contemplated herein, the undersigned is duly authorised to execute this Guarantee pursuant to the power granted under ——————.

IN WITNESS WHEREOF THE GUARANTOR HAS SET ITS HANDS HEREUNTO ON THE

DAY, MONTH AND YEAR FIRST HEREINABOVE WRITTEN. Signed and Delivered by ——————- Bank by the hand of Mr——————- its ——————— and authorised official.

Internal audit

Business

internal audit department

field of internal audit

internal audit tasks

internal audit activities

audit standards

audit manualsbased

category of audit

current internal audit