Notification of the RFP Document for the appointment ...

Notification of the RFP Document for the appointment/empanelment of CA Firm as

Internal Auditor for Review of Power Purchase Bills for FY 2015-16

No. GM(IAD)/PMC/PP/NIT/2015-16/94 Jabalpur, Dated 26.03.2016

M.P. Power Management Company Limited, with its Head office at Shakti

Bhawan, Jabalpur, is a Government of Madhya Pradesh Undertaking, incorporated under

the provisions of the Companies Act, 1956. The company desires to engage a reputed

Chartered Accountant firm empaneled with CAG and having its Head Office/ Branch

Office located in Madhya Pradesh, as Internal Auditors for Review of Power Purchase

Bills for FY 2015-16.The CA Firm intending to apply for the above mentioned works

should fulfill the following criteria:

i. The bidder(s) should be a reputed and experienced audit firm(s) of Chartered

Accountants, registered with C&AG of India and should quote the Registration

Number. The firm must have experience in Audit of Public / large scale Sector

Undertakings/ Govt. Accounts for a period of last 5 years.

ii. The Bidder firm must have been in existence for the last 15 years.

iii. Out of total five year experience, the Bidder firm must have minimum three year

experience for conducting of audit of Power Utilities in India. A certificate duly

supported with relevant documents shall also be furnished.

iv. The Bidder firm independently or in joint venture with other audit firm (not

exceeding one) must have its/ their annual average turn over for the last three

years not less than Rs. Fifty lakhs.

v. The audit team shall consist of at least five members and the party must be

supervised by a full time qualified Chartered Accountant who shall be a

DISA/CISA qualified FCA (Fellow Chartered Accountant) having over ten

years of experience, and shall have at least two full time experienced staff with

over five years of experience in the audit of government PSU’s/ Power Utilities.

vi. There should be no legal suit / Criminal case pending or contemplated

against the Firm on the grounds of turpitude or for violation of any of the law

in force.

The interested Chartered Accountant Firms meeting the above qualification

criteria, may download the RFP document from the website www.mppmcl.com, up to

05.04.2016. The Bidders who download the tender document shall have to pay the

tender document fees of Rs. 1,050/- by way of a demand draft, payable to

MPPMCL, Jabalpur, at the time of submission of the bid. The bids will be accepted up to

3.00 PM on 06.04.2016 and opened on the same day at 3.30 PM. A Pre-bid meeting shall

be held on 02.04.2016 at 11.30AM. The venue for pre bid meeting and bid opening shall

be Regional Office, MPPMCL, E-4, Arera Colony, Opposite Bhojpur Club, Bhopal

462016.

For detailed information please refer to the RFP document.

By Order,

Place: Jabalpur

Date:

General Manager (IAD)

MPPMCL, Jabalpur

1

M.P. POWER MANAGEMENTCOMPANY LIMITED

REQUEST FOR PROPOSAL (RFP) DOCUMENT FOR

APPOINTMENT OF CA FIRMS AS INTERNAL

AUDITORS FOR REVIEW OF POWER

PURCHASE BILLS

(FY 2015-16)

(Bid No. GM(IAD)/PMC/PP/NIT/2015-16)

2

DISCLAIMER

1. This Request for Proposal (RFP) document is not an agreement or offer by the MP Power

Management Company Limited to the prospective Bidders or any other party. The

purpose of this RFP is to provide interested parties with information to assist the

formulation of their Bid. This RFP is based on material and information available in

public domain.

2. This RFP, along with its formats, is not transferable. The RFP and the information

contained therein are to be used only by the person to whom it is issued. Save and except

as provided in this RFP, it shall not be copied or distributed by the recipient to third

parties. In the event that the recipient does not continue with its involvement in the

bidding process in accordance with this RFP, this RFP must be kept confidential.

3. While this RFP has been prepared in good faith, neither MPPMCL nor its employees or

advisors/consultants make any representation or warranty express or implied as to the

accuracy, reliability or completeness of the information contained in this RFP.

4. Neither MPPMCL its employees nor its advisors/consultants will have any liability to any

Bidder or any other person under the law of contract, tort, the principles of restitution or

unjust enrichment or otherwise for any loss, expense or damage which may arise from or

be incurred or suffered in connection with anything contained in this RFP, any matter

deemed to form part of this RFP, the award for services, the information supplied by or

on behalf of MPPMCL or its employees, any advisors/consultants or otherwise arising in

any way from the selection process for the said services.

MPPMCL reserves the right to close the selection process or reject the bid at any stage

of selection process.

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I. Contents

SECTION I: INSTRUCTIONS TO BIDDER’S ..................................................................................... 4

1. SCOPE OF THE BID: .................................................................................................................... 4

2. QUALIFICATION OF THE BIDDERS ......................................................................................... 5

3. CLARIFICATION ON BID DOCUMENTS ................................................................................. 6

4. AMENDMENT TO BID DOCUMENT ......................................................................................... 6

5. DEVIATION FROM BID DOCUMENTS ..................................................................................... 7

6. FILLING OF BIDS: ........................................................................................................................ 7

7. DOCUMENTS COMPRISING THE BID: .................................................................................... 7

8. FORMAT AND SIGNING OF BID: .............................................................................................. 8

9. SUBMISSION OF THE BIDS ....................................................................................................... 8

10. BID VALIDITY .......................................................................................................................... 9

11 EARNEST MONEY & SECURITY DEPOSIT ....................................................................... 10

12. COST OF TENDER DOCUMENTS: ....................................................................................... 10

13. LATE BIDS: ............................................................................................................................. 10

14. PRE-BID MEETING ................................................................................................................ 10

15. BID OPENING ......................................................................................................................... 11

16. REJECTION OF BID ............................................................................................................... 11

17. CLARIFICATION OR MODIFICATION OF BIDS: .............................................................. 11

SECTION II: EVALUATION .............................................................................................................. 12

18. SCORING OF TECHNICAL CRITERIA ................................................................................ 12

19. EVALUATION OF FINANCIAL BID AND EMPANELMENTS ......................................... 14

20. ALLOCATION OF WORK…………………………………………………………………………………………..……14

21. CONFIDENTIALITY ............................................................................................................... 15

22. DUTIES OF MPPMCL ............................................................................................................. 15

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SECTION I: INSTRUCTIONS TO BIDDER’S

1. SCOPE OF THE BID:

1.01 Madhya Pradesh Power Management Company Limited here-in-after called MPPMCL

intends to empanel well established reputed and experienced Audit firms of Chartered

Accountants for carrying out the review and audit of monthly Power Purchase bills.

Scope for auditing of Power Purchase Bills is available at Annexure-VIII.

1.02 The audit shall be carried out in respect of power purchases bills received during the

period 01st April 2015 to 31st March 2016 as per the scope laid out in Annexure-VIII.

1.03 Completion Period and payment terms: The audit observations of monthly Power

Purchase bills shall be submitted in the form of report with the cover letter as laid out in

Annex-X within the following timelines :

o for the first months under review–within thirty (30) days from the date of

issue of LOA (Letter of award)

o for each subsequent months- within thirty (30) days from the date of issue of

letter by MPPMCL regarding allotment of further work.

o The payment for work done shall be released within thirty (30) days after the

acceptance of the report by MPPMCL.

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2. QUALIFICATION OF THE BIDDERS

2.1. Eligibility Criteria

2.1.1. The bidder(s) should be a reputed and experienced audit firm(s) of Chartered

Accountants.

2.1.2. The firm should be registered with C&AG of India and should quote the Registration

Number. The firm must have experience in Audit of Public / large scale Sector

Undertakings/ Govt. Accounts for a period of last 5 years.

2.1.3. The Bidder firm must have been in existence for the last 15 years.

2.1.4. Out of total five year experience, the Bidder firm must have minimum three year

experience for conducting of audit of Power Utilities in India. A certificate duly

supported with relevant documents shall also be furnished.

2.1.5. The Bidder firm independently or in joint venture with other audit firm (not exceeding

one) must have its/ their annual average turn over for the last three years not less than

Rs. Fifty lakhs.

2.2. The audit team shall consist of at least five members and the party must be supervised

by a full time qualified Chartered Accountant who shall be a DISA/CISA qualified

FCA (Fellow Chartered Accountant) having over ten years of experience, and shall

have at least two full time experienced staff with over five years of experience in the

audit of government PSU’s/ Power Utilities and the report as per the format

prescribed in Annexure-IV of which shall be submitted to the MPPMCL. The audit

firm would have to deploy additional team members, so as to complete the work

allotted within stipulated period. If any retiree / employee of MPPMCL,

MPPoKVVCL, MPMKVVCL, MPPaKVVCL is proposed to be engaged by bidder,

concurrence of MPPMCL would be required.

2.3. To be qualified for empanelment, the bidder’s shall provide evidence, satisfactory to

MPPMCL of their capacity and adequacy of resources to carry out the contract

effectively. Bids shall include the following information:

a. Copies of the original documents defining the constitution or the legal status, place of

registration and principal place of business, written power of attorney of the

signatory of the Bid to commit the Bidder.

b. Description of the resources available to carry out the proposed job.

c. Qualification and experience of all the personnel proposed for carrying out the work.

d. Information regarding any litigation, current or during the last two years, in which the

Bidder is involved, the parties concerned and the dispute and the disputed amount.

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2.4. The audit firm must have adequate staff for carrying out the work on concurrent basis.

The bidders shall have to submit an undertaking on non-judicial stamp paper of

requisite value, as per Annexure-VI, to the effect that the audit firm shall deploy

sufficient strength of the staff to carry out the audit on concurrent basis in case work

is allotted to them.

2.5. The firm should not have been debarred / blacklisted by any department of the State

or Union Government or any Government Company or its wholly owned subsidiary.

2.6. No disciplinary action is pending with the Institute of Chartered Accountants of India

against the firm or against any of its partners.

3. CLARIFICATION ON BID DOCUMENT

3.1. The prospective bidding Firm may obtain any clarification as per the format specified

in Annexure-XI regarding the bid document by writing or faxing to: -

Regional Office. Bhopal

E-4, Arera Colony, Opposite Bhojpur Club, Bhopal-

462016.

Phone No.: (0755) 2423044

Fax: (0755) 2423046

Email – (i) [email protected];

(ii) [email protected]

3.2. The bidding firm is advised in its own interest to examine the bid documents,

instructions, forms, terms & general information carefully before submission of bid.

Failure to provide information, which is essential to evaluate the bid or to provide the

timely clarification or substantiation of the information supplied or submission of bid

not substantially responsive to the bid document may result in disqualification.

4. AMENDMENT TO BID DOCUMENT

4.1. At any time prior to opening of bids, MPPMCL may for any reason, whether of its

own or by way of clarification given at the request of prospective bidder, modify the

bid document by issue of amendment (s) which shall form part of it. The

amendments shall be sent in writing to all the prospective bidders, who shall return

one copy of it duly signed along with their bid. Extension in the due date, if

considered necessary, may be made by the MPPMCL.

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5. DEVIATION FROM BID DOCUMENTS

5.1. The bid offer must include a separate statement indicating all deviation from the bid

documents as per format enclosed at Annexure-‘V’. All such deviations shall be clearly

mentioned in deviation sheet. Unless the deviations from the bid documents are

specifically mentioned, it will be understood and agreed that the proposal is in strict

conformity to MPPMCL specifications in all respect and it will be assumed that all

terms & conditions are acceptable to the bidder. These deviations may or may not be

accepted by MPPMCL and in case the deviations as proposed by the bidder are not

accepted by MPPMCL, the bidder will have the option either to withdraw the deviation

or to withdraw the offer. In case the deviation proposed are not accepted by MPPMCL

and the same not withdrawn by the bidder, the bidder shall be considered as ‘Not

qualified’ for the bid and his price bid shall not be opened.

6. FILING OF BID:

a) Bid shall be submitted in the forms attached hereto and all blanks in all Annexures shall

be duly filled in. The complete Form & Annexures shall be considered as part of

contract documents in the case of successful bid.

b) No alteration should be made to Form of the Tender Specification and Annexures. The

bid must comply entirely with the specification and alternative proposals, if any, shall

be clearly stated in the covering letter.

c) The bid and all accompanying documents shall be legible be in English language and

shall be signed by a responsible and authorized person. The name, designation and

authority of signatory shall be stated in the bid.

d) Bids should be typed or shall be a computerized print out. No bid filled in by pencil or

otherwise shall be considered.

e) All additions, alterations and over writings in the bid must be clearly initialed by the

signatory to the bid.

f) The bidder should quote the prices strictly in the manner as indicated herein, failing

which bid is liable for rejection. The rates / prices shall be in words as well as figures.

This must not contain any addition, alternation, overwriting, cutting over correction and

any other marking, which leave any room for doubt.

g) The contract awarding authority will not be responsible to accept any cost involved in

the preparation and submission of the bids.

7. DOCUMENTS COMPRISING THE BID:

7.1. The bidder shall submit the following document/information with the bid.

Covering letter as per Annexure-I

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Power of Attorney as per format Annexure-II

Earnest Money of Rs 10,000

Financial Bid in Annexure -III.

Other details as called for in the bid documents or which the bidder may like to

highlight.

Undertaking ‘A’ and ‘B’ as per annexures VI & VII.

In case the Bidder is a joint venture: Power of Attorney as per format XII and

Undertaking of Joint Venture as per format XIII.

8. FORMAT AND SIGNING OF BID:

8.1. The bidder shall submit one ORIGINAL and a DUPLICATE copy of the bid,

complete in all respect with enclosures. The bid shall be signed on each page.

8.2. The person or persons signing the bid shall initial all pages of the bid, including where

entries or amendments have been made.

9. SUBMISSION OF THE BIDS

9.1. The interested bidder may submit their proposal on or before 3.00 PM of 06.04.2016,

at the following address:

Regional Office. Bhopal

E-4, Arera Colony, Opposite Bhojpur Club, Bhopal-462016.

Phone No.: (0755) 2423044

Fax: (0755) 2423046

Email – (i) [email protected]

(ii) [email protected]

9.2. The bid shall be submitted in a single large size envelope, super scribed as “Bid offer

against Bid No. GM(IAD)/PMC/PP/NIT/2015-16”, will have three sealed envelopes

inside, marked as Envelop No.1, Envelop No.2, Envelop No.3 respectively and

contain the documents as mentioned below:

a. Envelope No.1 (One small size envelope): This sealed envelope shall be super

scribed “Earnest Money against Bid No. GM(IAD)/PMC/PP/NIT/2015-16” and shall

contain covering letter as per Annexure-I, duly signed, along with DD towards

Earnest Money Deposit (EMD) and cost of RFP document ( RFP document is to be

downloaded from Company’s web-site “www.mppmcl.com”).

b. Envelope No. 2: This sealed envelope shall be super scribed “Qualification Bid

against Bid No. GM(IAD)/PMC/PP/NIT/2015-16” and shall include submission of

Power of Attorney as per Annexure-II (as per Annexure-XII in case of JVs),

information for verification of bidder’s qualification as per Annexure-IV and all

enclosures, Deviation proposed as per Annexure-V, Undertakings “A” and “B” as per

Annexure-VI & VII (as per Annexure-XIII in case of JVs), and any other document

the bidder may want to attach to support the qualifications.

c. Envelop No.3: This sealed envelope shall be super scribed “Financial Bid against Bid

No. GM (IAD)/PMC/PP/NIT/2015-16” and shall contain Financial bid as per

Annexure-III.

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9.3. The bid document, duly stamped and signed on each page by the authorized signatory,

shall also be placed in this envelope.

9.4. The bid will be opened at 3.30 P.M. on 06.04.2016 at the address indicated at para 9.1

above. Bids submitted telegraphically or by Fax/ email will not be accepted.

10. BID VALIDITY

10.1. Bid shall remain valid for acceptance for a period of 60 (Sixty) days from the date of

bid opening. In case of circumstances beyond control the MPPMCL may go for

suitable extension. In case the performance of the selected CA firm is found

satisfactory, the tenure of such CA firm may be extended.

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11. EARNEST MONEY & SECURITY DEPOSIT:

11.1. Earnest Money Deposit: The bidder shall deposit with the MPPMCL, Jabalpur, an

amount of Rs 10,000 as Earnest Money by crossed Bank Draft payable at Jabalpur in

favour of MPPMCL, Jabalpur. The DD shall be placed in the envelope as specified

in para 9.2 above. No other mode of deposit shall be accepted. Any offer not

accompanied by crossed Bank Draft shall be rejected and the bid will not be opened.

In case of unsuccessful bidders, the Earnest Money will be refundable within a

fortnight after finalization of the tender. In case of successful bidder, the Earnest

Money will be converted into the Security Deposit. Request for

adjustments/proposals for acceptance of Earnest Money deposits, if any, already

lying with MPPMCL in connection with some other tenders/orders shall not be

entertained. No interest shall be payable on the amount of Earnest Money deposited

with MPPMCL. MPPMCL reserves the right to forfeit Earnest Money Deposit in full

or a part thereof, if the bidder fails to execute the contract agreement within the time

specified in the Letter of Award (LOA), or any other circumstances which indicate

that the bidder is not interested in accepting/executing the order placed.

11.2. Security Deposit: An amount equivalent to 10% of the initial value of the

assignment is to be deposited towards Security Deposit, by the successful bidder, to

whom the work is awarded for execution, in the form of a DD drawn on a

scheduled bank in favour of MPPMCL, payable at Jabalpur, within seven (7)

days from the date of acceptance of the LoA by the Successful Bidder. Failure to

commence the audit within one (1) month from the date of acceptance of the

LoA shall entail the forfeiture of security deposit and cancellation of the LoA. The

Security Deposit shall be returned within two months after successful completion of

the assignment subject to submission of necessary certificate obtained by the Firm

from the authorized officer of MPPMCL.

12. COST OF RFP DOCUMENT:

12.1. Purchase of RFP document is essential for participation. The cost of RFP document is

Rs. 1050/- (Rs One Thousand Fifty) only, inclusive of VAT. The RFP Documents

containing terms & conditions and other information can be downloaded from the

website of the Company “www.mppmcl.com” and the cost thereof can be paid in the

form of crossed bank draft.

13. LATE BIDS:

13.1. Any bid received after the dead line for submission shall be liable for rejection.

14. PRE-BID MEETING

14.1. The pre bid meeting shall be held on 02.04.2016 at Regional Office, Bhopal, E-4,

Arera Colony, Opposite Bhojpur Club, Bhopal-462016 at 11:30 am.

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15. BID OPENING

15.1. MPPMCL will open the “Qualification Bid” in the office of Regional Office, Bhopal,

E-4, Arera Colony, Opposite Bhojpur Club, Bhopal-462016, in the presence of

bidder’s or their authorized representatives, who choose to be present. If the opening

date happens to be a holiday, the bids will be opened on the next working day at the

same place and time, unless notified otherwise.

15.2. If necessary, the date and time for opening of Financial Bid shall be intimated to the

qualified bidders separately.

16. REJECTION OF BID

16.1. MPPMCL reserves the right to reject or accept any Bid without assigning any reason

thereof.

16.2. However, the bid as under shall not be accepted and such bids shall be rejected, if

received: -

a. Bid submitted by the Partnership firms/LLP’s, who have been black listed or with

whom business dealing have been suspended by any state Govt., Union of India or

any Public sector undertaking under them. The bidder shall have to submit an

undertaking in this regard.

b. The offer/bid submitted by those who had not purchased the bid specification from

MPPMCL.

c. The bid submitted by a person directly or indirectly connected with the service under

Government/ Local Authority/MPPMCL.

d. The bid not accompanied by the specified amount of earnest money.

e. The bid received after due date and time fixed for receiving the bid.

17. CLARIFICATION OR MODIFICATION OF BIDS:

17.1. To assist in examination, evaluation and comparison of bids, MPPMCL may ask the

Bidder’s individually for clarification in writing. No change in the substances of the

bid shall be permitted except as required to confirm the correction of any

typographical error.

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SECTION II: EVALUATION

18. Scoring of Qualification Criteria

18.1. In the first stage, the bidders’ qualifications will be evaluated on the basis of firm’s

profile and relevant past experience of executing similar type of assignments,

qualification and experience of the personnel of the firm.

18.2. In the second stage, the approach and methodology part will be scrutinized for each

responsive bidder, through a 15 min power point presentation presented by the bidder

on the understanding of the scope of work with the service deliverables and their

proposed work plan. Only those Bidder’s whose Qualification Proposals score 70

points or more out of 100 shall be qualified for evaluation of Financial Bid (hereinafter

known as Qualified Bidders).

18.3. The scoring criteria to be used for evaluating qualifications shall be as follows:

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SCORING CRITERIA (MARKS ALLOCATION) FOR EMPANELMENTOF BIDDING FIRMS

(AS PER CONSTITUTION OF FIRM AS ON 31st March 2015.)

Sr.No. PARTICULARS MARKS TO BE

ALLOCATED

MAXIMUM

MARKS

MARKS

OBTAINED

1. Year of establishment of the

Audit firm/LLP

1(one) per year in

existence beyond

15 years (fraction

of year to be

ignored)

10(ten)

2. No. of partners in the

Firm/LLP who are with the

firm for a minimum period

of one year

a. 1 (one) for each

partner (FCA/

CMA) who is

associated with

the firm for

more than 5

years

b. 3 (three) for

each partner

(FCA/ CMA)

who is

associated with

the firm for

more than 10

years

c. 5 (five) for each

partner (FCA/

CMA) who is

associated with

the firm for

more than

20years

20 (Twenty)

3. No. of Qualified Assistants

(Chartered accountants/Cost

accountants)

1(one) per

Qualified

Assistants

5(five)

4. No. of Semi-qualified

Assistants (CA/CWA-

intermediates) employed

with the firm

1(one) per semi

Qualified

Assistants

5(five)

5. Experience of the firm in

power sector preferably

under central or state

government as

Statutory/Internal Auditor in

last 5 years

5 (five) per year of

audit (fraction of

the year to be

ignored)

25(twenty

five)

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SCORING CRITERIA (MARKS ALLOCATION) FOR EMPANELMENTOF BIDDING FIRMS

(AS PER CONSTITUTION OF FIRM AS ON 31st March 2015.)

Sr.No. PARTICULARS MARKS TO BE

ALLOCATED

MAXIMUM

MARKS

MARKS

OBTAINED

6. Experience of the firm in

Sectors/Industries other than

power under central/State

Government as

Statutory/Internal Auditors

1(one) per year of

audit (fraction of

the year to be

ignored)

5(five)

7. Average Annual Turnover

of the Firm during last three

years

a. 10(ten) for

turnover of at

least Rs.

50.00 lakhs-

b. 20(Twenty)

for turnover of

Rs 50.00 lakhs

to Rs 1.00 Cr.

c. 30 (Thirty) for

turnover of >

Rs.1.00 Cr.

30 (Thirty)

Total 100

19. EVALUATION OF FINANCIAL BID AND EMPANELMENTS

19.1. The financial bid shall be opened in the presence of the representatives of the

Qualified Bidders, who wish to be present as per the timelines indicated in this RFP,

or such other date as may be intimated by MPPMCL to the Bidders. The evaluation of

“Financial Bid” shall be carried out based on the information furnished in Envelope

III (Financial Bid).

19.2. The Bidders shall quote the Fees as per the format mentioned in Annexure-III.

19.3. The Financial Bids shall be ranked from the lowest to highest and the Bidder quoting

the lowest fees (hereinafter known as L1 quote) shall be the “Successful Bidder.”

19.4. MPPMCL intends to empanel three (3) audit firms for “Review of monthly Power

Purchase Bills”. The priority for matching ‘L1 quote’ shall be given to the Bidder

15

starting from next lowest quoted price. The bidders shall have to match with the ‘L1

quote’ and only those bidders who match with L1 quote will be empaneled and shall

be known as “Empaneled Audit Firms”. However other Bidders shall be kept in

reserve and may be invited in case any of the empaneled audit firms withdraw or the

contract is terminated as per clause 20.1of this RFP. The priority for such invitation

shall be given to the Bidder with the next lowest quote.

20. ALLOCATION OF WORK:

20.1. Each empaneled audit firm may be initially allotted the work of review of any one

month’s power purchase bills from FY 2015-16.

20.2. On the basis of the assessment of the performance of the auditor as per the parameters

specified in Annexure IX, MPPMCL may allot further work for review of bills, for one

month at every point of time. However, the quantum of work allotted to each

empaneled audit firm will be subject a ceiling of maximum six months’ bills.

20.3. The empaneled audit firms shall submit audit report for each month separately

and a consolidated report after the completion of work for FY 2015-16.

20.4. In case of unsatisfactory performance, MPPMCL shall have the right to terminate the

contract at any time and allot the work to the bidder with the next lowest quote. In such

a case, the security deposit of the firm whose contract is terminated will be forfeited.

21. CONFIDENTIALITY

22.1. The Bidding firm and its appointed personnel shall not, either during the term and

after the expiration of this contract, disclose any proprietary or confidential information

relating to this contract, or the information provided by MPPMCL. All documents and

report prepared by the Bidding firm in performing the services as per the scope of work

shall become the property of MPPMCL.

23. DUTIES OF MPPMCL

23.1. MPPMCL shall make available suitable accommodation with furniture and electrical

fittings to the audit team during the period of engagement. All other requirements

including laptops shall be arranged by the audit team.

24. OTHER IMPORTANT INFORMATION

24.1. For review of the power purchase bills the audit team will have to visit different

offices of MPPMCL located at Shakti Bhawan, Jabalpur.

24.2. The intending bidders may quote their fee with the clear understanding that lodging

and boarding, travelling or local conveyance charges will not be paid separately. The

bidders are expected to include such expenses in their fee quoted in the Financial Bid.

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Annexures to RFP

Covering Letter Annexure I

Power Of Attorney Annexure II

Financial bid Annexure III

Submission of Information for Verification of Qualification Annexure IV

Deviations Proposed Annexure V

Undertaking A by the Bidders Annexure VI

Undertaking B by the Bidders Annexure VII

Broad Scope of Work Annexure VIII

Indicative Performance Parameters Annexure IX

Covering Letter Format of Report Annexure X

Format For Clarifications In The Tender Document Annexure XI

Format of Power of Attorney for Joint Venture Annexure XII

Format of undertaking by the Joint Venture Partners Annexure XIII

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Annexure-I

COVERING LETTER

Covering Letter for submission of Bid

(The covering letter is to be submitted by the Bidder on its Letterhead)

(To be kept in envelope 1)

Date…

To,

Regional Office. Bhopal

E-4, Arera Colony, Opposite Bhojpur Club, Bhopal-462016.

Phone No.: (0755) 2423044

Fax: (0755) 2423046

Email – (i) [email protected];

(ii) [email protected]

Dear Sir,

Sub: Bid for Appointment of CA Firms for Review of Power purchase bills (Bid No

GM(IAD)/PMC/PP/NIT/2015-16)

In response to the Notice Inviting Tender, dated ……. issued by MPPMCL, we offer

proposal to participate in the bidding process for selection of the CA Firms for “Review of

power purchase bills.”

We are submitting this proposal on our own. If selected, we understand that it would be on

the basis of the organizational, technical, financial capabilities and experience as specified in

the RFP document.

We understand that the basis for our qualification will be our proposal, and that any

circumstance affecting our continued eligibility under the RFP document, or any

circumstance which would lead or have led to our disqualification under the RFP document,

shall result in our disqualification under this process.

We hereby enclose Earnest Money Deposit (EMD) of Rs 10,000 in form of Demand Draft No

---------- drawn in favor of MPPMCL Payable at Jabalpur.

We understand that MPPMCL is not bound to accept any or all our proposals receive by it.

We declare that we have not entered into any sub-contracting arrangement with any other

person or firm including the other Bidders for the assignment, in connection with the

preparation and/or submission of our proposal for the assignment, or preparation of the

bidding documents.

18

We submit herewith, authenticated copies of the firm’s Partnership Deed (as applicable).

We declare that we have disclosed all material information, facts and circumstances to the

MPPMCL, which would be relevant to and have a bearing on the evaluation of our proposal

and selection.

We acknowledge and understand that in the event that MPPMCL discovers anything contrary

to our above declarations; it is empowered to forthwith disqualify us and our proposal from

further participation in the process.

For information/ clarification Mr. ……….. (Name of the Partner, address, email id, telephone

number) may be contacted.

We hereby state that we have read and understood the terms and conditions of the RFP

document and agree to abide by the same. We further agree to undertake the said assignment

to the satisfaction of MPPMCL, and as per the terms and conditions of the RFP document.

Yours faithfully,

Partner of the Bidder Firm

Name & Seal of Signatory

Address:

Note: Authorized partner of the Partnership Firm will sign the letter.

19

Annexure II

POWER OF ATTORNEY

Know all men by these presents, We………………………………………………….(name

and address of the firm & its registered office) do hereby constitute, appoint and authorize

Mr. / Ms………………………………(name and residential address) as our true and

lawful attorney, to do in our name and on our behalf, all such acts, deeds and things

necessary in connection with or incidental to submission of our proposal/bid for the

envisaged assignment of “Review of Power Purchase Bills ”, including signing and

submission of the Bid and all documents specified in the RFP Document, including,

undertakings, letters, certificates, acceptances, clarifications, guarantees, etc., making

representations to the authorized officer of MPPMCL and providing information /

responses to the authorized officer of MPPMCL, representing us in all matters before the

authorized officer of MPPMCL, and generally dealing with the authorized officer of

MPPMCL, in all matters in connection with our Bid for the said assignment.

We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney

pursuant to this power of attorney and that all acts, deeds and things done by our aforesaid

attorney shall and shall always be deemed to have been done by us.

All the terms used herein but not defined shall have the meaning ascribed to such terms

under the RFP document.

Signed by the within named ____________________ [Insert the name of the

EXECUTANT(s)] THROUGH THE HAND OF MR._____________________ DULY

AUTHORIZED SIGNATORY

DATED THIS ___ DAY OF 2016

BEFORE ME,

NOTARY

ACCEPTED

…………..

(SIGNATURE)

(Name, Title and Address

OF THE ATTORNEY)

20

NOTE:

The mode of execution of the POWER OF ATTORNEY should be in accordance with the

procedure, if any, laid down by the applicable law and the charter documents of the

executants and when it is so required the same should be under common seal affixed in

accordance with the required procedure.

21

Annexure-III

FINANCIAL BID

FORMAT FOR THE FINANCIAL BID

The following shall be used as a format for the “Financial Bid” to be submitted in

Enevelope-3 of the Bid.

(A) Quoted Price (QP) for the Review of Monthly Power Purchase Bills

Sl

No

Details Amount in Rs

1

Lump sum price inclusive of all taxes, duties etc.

For carrying out review of monthly Power

Purchase bills of MPPMCL as per scope of work

and the terms and conditions given in the RFP

document (A)

Rs. ………………. only.

In words…

2 Lump sum Yearly price (A*12) Rs. ………………. only.

In words…

Note:

1) Any overwriting or erasing in the quotation shall render the same invalid.

2) Where there is any discrepancy between the rates in figures and words, words will

govern.

3) Any difference between the original and duplicate copy of the bid, the Original Bid shall

govern.

Yours faithfully,

Partner of the Bidder Firm

Name & Seal of Signatory

Address:

22

Annexure-IV

SUBMISSION OF INFORMATION FOR VERIFICATION OF QUALIFICATION

a) All information submitted shall be sealed and signed by the authorized representative

of the firm.

b) A brief “Profile” of the Firm’s Practice and experience giving the following details

clearly:

1 Name of the Firm

2 ICAI Registration No

3 CAG Empanelment No.

4 PAN No.

5 Service Tax Registration No

6 Strength of manpower

7

Audit and Certification work done in past 5 years (along with details as

Name of the client and the fees charged)

8 Experience of PSU’s other than Bank and Insurance Sector

The firm must submit documentary evidences in support of the above mentioned details, as

given in the table below:

1 Photocopy of the Certificate of Registration of the partnership with ICAI

2 Photocopy of the latest Certificate of Constitution of firm issued by ICAI

3 Documentary evidence for the CAG Empanelment No.

4 Photocopy of PAN Card

5 Photocopy of Service Tax Registration Certificate / Copy of Service Tax

Challan etc. clearly specifying the Name and Registration No. of the CA firm

6 DISA/CISA certificates of the DISA/CISA qualified CA

7 Audited copies of P & L A/c, Balance Sheet, and Income Tax Return

for last three years of the CA firm

23

8 Breakup of the Professional Fees of last five years, clearly segregating the

fees from Audit services during the year (if not already available in the

audited accounts), duly attested by its Auditor.

c) Qualification of the staff

Sl No Qualification No of Staff on roll

1 No. of CAs

2 No. of DISA/CISA qualified CA

3 Postgraduate in Commerce

4 Graduates in Commerce

d) Details of list of major five clients for FY 14-15 giving the following details clearly:

1 Name of organization

2 Form of organization (Partnership/ Proprietary/Company).

3 Turnover

4 Fee charged.

5 Experience/Completion Certificates of Statutory / Internal Audit from atleast

three clients out of the Clients as mentioned above.

6 Audited Financial Statements of the Year 2014-15 of the clients mentioned above

e) Documentary evidence in support of the audits undertaken for Government PSU’s or

Utilities.

Yours faithfully,

Partner of the Bidder Firm

Name & Seal of Signatory

Address:

24

Annexure-V

The below table will contain the detailed description of deviations from the mandatory

criteria (if any):-

DEVIATION PROPOSED

Sr.

No.

Section no. of the

RFP document

Reference of

clause no.

Deviation Proposed

Yours faithfully,

Partner of the Bidder Firm

Name & Seal of Signatory

Address:

Note-

1. In case the bidder does not propose any deviations then this annexure shall be marked as

“No Deviation” in the table above

25

Annexure-VI

UNDERTAKING A

(To be submitted in envelope-2, along with the Qualification Bid on a non-judicial stamp

paper of requisite value duly notarized)

To,

M.P. Power Management Company Limited,

Regional Office,

E-4, Arera Colony, Opposite Bhojpur Club,

Bhopal-462016.

Phone No.: (0755) 2423044

Fax: (0755) 2423046

Email – (i) [email protected];

(ii) [email protected]

Dear Sir,

Sub: Bid for Appointment of CA firm as Internal Auditor for verification of

Power purchase bills

This undertaking is submitted in respect of the appointment as Internal Auditors for review of

the power purchase bills of MPPMCL, in response to the RFP document dated

……………….. issued by MPPMCL and subsequent amendment thereof.

We hereby agree that:

1) We shall deploy at least 1 FCA on the assignment who shall be the Leader of the team

and responsible for the overall coordination of the audit team;

2) We shall deploy at least 2 full time experienced staff of the firm who shall be responsible

for reviewing the power purchase bills

3) The experienced staffs deployed on the assignment shall not be the articled assistants of

the firm.

4) The staff will maintain complete secrecy of the records and will not disclose any matter

which comes to their knowledge during the conduct of internal audit, to the third party,

which may adversely affect the interest of the Company.

(Signature of authorized signatory of the firm issued along with firm’s seal)

Name: ………………………………..

Designation: ………………………………………

Date: ………………………………

Place: …………………………………

26

Annexure-VII

UNDERTAKING B

(To be submitted in envelope-2, along with the Qualification Bid on a non-judicial stamp

paper of requisite value duly notarized)

To,

M.P.Power Management Company Limited,

Regional Office,

E-4, Arera Colony, Opposite Bhojpur Club,

Bhopal-462016.

Phone No.: (0755) 2423044

Fax: (0755) 2423046

Email – (i) [email protected];

(ii) [email protected]

Dear Sir,

Sub: Bid for Appointment of CA firm for Review of Power Purchase Bills

This undertaking is submitted in respect of the appointment as Internal Auditors for review of

the power purchase bills of MPPMCL, in response to the RFP document dated

……………….. issued by MPPMCL and subsequent amendment thereof.

We hereby agree that:

We have never been blacklisted by any Government Department or Public Sector

Undertaking of any State Government in India or the Government of India for practicing in

India.

We have no pending or contemplated legal suit or criminal cases on grounds of

turpitude or for violation of any other law in force.

We understand and agree that if the information mentioned above is found to be incorrect at

any stage of this Bidding Process, our Bid shall be considered as non-responsive and

rejected accordingly. If this undertaking is found to be incorrect post the issue of LoA,

then such LoA issued shall automatically stand cancelled and the contract terminated,

without any liability to either Party. Under such circumstances, however, we

acknowledge and accept the right of MPPMCL to encash our EMD.

We further understand and agree that if the Audit is awarded to us and this

undertaking is found to be incorrect after execution of the work, the order of appointments

stands terminated, without any liability to either Party. Under such circumstances, however,

we acknowledge and accept the right of MPPMCL to encash our Security Deposit.

(Signature of authorized signatory of the firm issued along with firm seal)

Name: ………………………………..

Designation: ………………………………………

Date: ………………………………

Place: …………………………………

27

Annexure-VIII

BROAD SCOPE OF REVIEW OF THE POWER PURCHASE BILLS

I. Verification of Bills

1. The Auditor has to verify the following monthly power purchase bills :

a. All bills of thermal generators like MPGENCO, NTPC, DVC, IPP’s etc.

b. All bills of hydel generators like MPGENCO, NHDC, NVDA etc

c. All bills of Nuclear Power Generators.

d. All bills of PGCIL and MPTRANSCO.

e. Sample bills of Solar, Wind, Biomass and Captive power generators.

f. Short term power purchase bills/ transaction through power exchanges

g. DSM and Reactive Charges Bills

The above bills shall be the bills received during 01st April 2015 to 31st March 2016,

pertaining to any period (The indicative figures are approximately 150 bills per

month, out of which around 115 may pertain to wind energy and approximately 25

may pertain to solar/ biomass/ captive generators).

2. Verification of power purchase bills (billed and passed) shall include, but not limited

to:

i. Verification of recovery of capacity charge, energy charge, transmission

charge and incentive by the generating company and the transmission licensee

shall be based on the achievement of the operational norms specified in the

regulations 36 to 39 of the Central Electricity Regulatory Commission (Terms

and Conditions of Tariff) Regulations 2014 and/or as per relevant MPERC

Regulations.

ii. Verification of variable charges for kWh of electricity scheduled along with

the meter readings recorded or as per REA /SEA/RTA and also verify the

variable charges supported with relevant documentation of fuel consumption

and it’s GCV (Gross Calorific Value).

iii. Verification of the Fixed Charges shall be based on PLF of respective plants

and its year of operation (refer relevant schedule in power purchase agreement

and also regulation).

iv. Verification of DSM Charges (based on the systems efficiency).

v. Check and verification of the surcharge and rebate, payable or receivable

levied on bills and also verify whether the same are adjusted or charged in the

bills.

vi. Check and verification of the levy of trading margin as per the terms of

contracts with the third parties/ power exchanges.

vii. Verification of all PSA’s in order to check whether they are in line with PPA

entered between Trader and Generator.

viii. Check and verify that TDS, if applicable has been deducted at the applicable

rates of Income Tax Act, 1961, service tax levied, if any, under Finance Act

for the respective years

28

II. Check of Compliances, Agreements, Regulations and all applicable Central/ State

Acts

1. Check and verify whether the bills submitted are as per the PPA, the applicable tariff

orders and MPERC/CERC regulations.

2. Verification of Power Purchase Agreements/MOU/Implementation Agreement with

Central & State agencies/IPP’s/ and JV’s with other States.

3. Verification of bidding process for purchase/sale of power from/to open market (also

considering demand factor).

4. Verify whether norms of MOD should strictly be followed.

5. Check the agreements in order to ensure that the terms of the agreements are not

prejudicial to the interest of the Company (if any suggestions to be given for, such

agreement(s) to be revised in accordance with the regulations).

6. Check and verify whether Sale/ purchase/ reconciliation of generation are in

accordance with the guidelines/ instructions prescribed by the CERC/ SERC/

CEA/MOP or any other regulatory body.

7. Verify the unit rate levied w.r.t. the respective schedule in the agreement based on the

year of operation.

III. Verification of DSM Charges and Transmission charges

1. Verify that the DSM Charges are correctly calculated w.r.t. the regulations.

2. Verification of the Deviation Charges shall include but not limited to:

i. Verification of variations between actual net injection and scheduled net

injection for the generating stations, and variations between actual net drawl

and scheduled net drawl for the beneficiaries shall be treated as their

respective deviations and charges for such deviations shall be governed by the

Central Electricity Regulatory Commission (Deviation Settlement Mechanism

and Related matters) Regulations, 2014, as amended from time to time or any

subsequent re-enactment thereof.

ii. Verification of actual net deviation of every Generating Station and

Beneficiary shall be metered on its periphery through special energy meters

(SEMs) installed by the Central Transmission Utility (CTU), and computed in

MWh for each 15-minute time block by the concerned Regional Load

Dispatch Centre.

3. Check and verify the correctness of Computation and Payment of Transmission

Charge for PGCIL as well as MPTRANSCO.(Bill-I to Bill IV)

Other checks and verifications

1. Verify the records maintained for input of electricity and reconcile the same with the

input of energy as per Energy Audit.

2. Verify that the delegation of powers is duly adhered to for passing the Bills for

payment.

3. Check and verify whether the schedule of Mandatory Annual Shut Down by the

Generator is considered and planned with an alternative supply from any other

generator to meet the requirements during that period.

29

4. Check and verify whether the bill for escalation in fuel cost is in accordance with the

conditions in the agreement with the Generator and are supported with proper

documents.

5. Verify that the date of commercial operation of a generating station or unit or block

thereof or a transmission system or element thereof is determined as per regulation.

6. To ensure prudence check; “Prudence Check means scrutiny of reasonableness of

capital expenditure incurred or proposed to be incurred, financing plan, use of

efficient technology, cost and time over-run and such other factors as may be

considered appropriate by the Commission for determination of tariff”.

7. Verify the methodology for scheduling and dispatch for the generating station and

ascertain whether the same is according to the specifications mentioned in the Grid

Code.

8. Verify the correctness of Sharing of CDM Benefits, Deviation from norms, Deferred

Tax liability, Foreign Exchange Rate Variation, Recovery of cost of hedging,

application fee and the publication expenses, Power to Relax etc. as per Regulations.

9. Internal Auditor shall also undertake the review liquidated damage and penalty related

clauses in all PPAs.

10. Verification of adjustments passed on account of:

i. Truing up orders,

ii. Revision in RLDC and SLDC account.

11. Verification of bills raised on account of curtailment of power with respect to refund

of the payment made for the open access corridor.

30

Annexure IX

INDICATIVE PERFORMANCE PARAMETERS

The performance of the Auditor shall be determined based on the following parameters:

Feedback from the concerned officers of MPPMCL;

Elapsed time for issue of reports – completion of audit work to draft report;

Elapsed time for issue of reports – draft to final report;

% unsatisfactory audit opinions (not more than 10%);

% of recommendations accepted (not less than 50% - 70%);

Number of repeat audit findings;

Amount of direct savings potential as a result of audits;

Amount of measurable savings achieved as a direct result of audits;

Number of major process improvements implemented as a result of audits;

Extent of advice given; and

Number of best practice ideas shared

Advice/ suggestion for improvement in respect of IABS system implemented by L&T

In addition to the above list, the Auditor is also expected to follow and meet the

minimum standards as prescribed from time to time by the governing body.

31

Annexure X

COVERING LETTER FORMAT FOR AUDITOR’S REPORT ON REVIEW OF

POWER PURCHASE BILLS

(NOT REQUIRED WITH THE BID SUBMISSION)

To

The Board of Directors

……………………….

……………………….

We have examined the Power purchase bills for the month of

………………………………………of (insert name of the Supplier) as per attached

statement.

We report that:

We have examined all the record and obtained all the information and explanations, which

to the best of our knowledge and belief were necessary for the purposes of our audit.

In our opinion and to the best of our knowledge and belief and according to the

explanations given to us,

(Insert your point-wise findings/ opinion)

(NAME AND SIGNATURE OF THE AUDITOR SIGNING)

FOR AND ON BEHALF OF (NAME OF THE AUDITOR FIRM)

32

Annexure XI

FORMAT FOR CLARIFICATIONS IN THE TENDER DOCUMENT

Sl No Clause no. and

existing provisions

Clarification required Rationale for the

clarification

33

Annexure XII

FORMAT OF POWER OF ATTORNEY FOR JOINT VENTURE

KNOW ALL MEN BY THESE PRESENTS THAT WE, the Partners whose details are given

hereunder

----------------------------------------------------- have formed a Joint Venture under the laws of -

---------------------------------- and having our Registered Office(s)/Head Office(s) at ------------

------------------------

(hereinafter called the 'Joint Venture' which expression shall unless repugnant to the context

or meaning thereof, include its successors, administrators and assigns) acting through M/s ----

---------------------------being the Partner in-charge do hereby constitute, nominate and appoint

M/s ----------------------------- a Partnership firm incorporated under the laws of-----------------

----------------- and having its Registered/Head Office at -------------------------------------- as

our duly constituted lawful Attorney (hereinafter called "Attorney" or "Authorized

Representative" or "Partner In-charge") to exercise all or any of the powers for and on behalf

of the Joint Venture in regard to the bids for which have been invited by (insert name of the

Employer along with address) ------------------------(hereinafter called the 'Employer') to

undertake the following acts :

i) To submit proposal and participate in the aforesaid Bid Specification of the Employer

on behalf of the "Joint Venture".

ii) To negotiate with the Employer the terms and conditions for award of the Contract

pursuant to the aforesaid Bid and to sign the Contract with the Employer for and

on behalf of the "Joint Venture".

iii) To do any other act or submit any document related to the above.

iv) To receive, accept and execute the Contract for and on behalf of the "Joint Venture".

It is clearly understood that the Partner In-charge (Lead Partner) shall ensure performance of

the Contract(s) and if one or more Partner fail to perform their respective portions of the

Contract(s), the same shall be deemed to be a default by all the Partners.

It is expressly understood that this Power of Attorney shall remain valid binding and

irrevocable till completion of the Defect Liability Period in terms of the Contract.

The Joint Venture hereby agrees and undertakes to ratify and confirm all the whatsoever the

said Attorney/Authorized Representatives/Partner in-charge quotes in the bid, negotiates and

signs the Contract with the Employer and/or proposes to act on behalf of the Joint Venture by

virtue of this Power of Attorney and the same shall bind the Joint Venture as if done by itself.

IN WITNESS THEREOF the Partners Constituting the Joint Venture as aforesaid have

executed these presents on this --------------- day of under the Common Seal(s) of their

Companies.

for and on behalf of

the Partners of Joint Venture

34

1. Signature -------------------------

Name -------------------------

Designation -------------------------

Occupation -------------------------

2. Signature -------------------------

Name -------------------------

Designation -------------------------

Occupation-------------------------

Note:

1. For the purpose of executing the Agreement, the non-judicial stamp papers of

appropriate value shall be purchased in the name of Joint Venture.

2. The Agreement shall be signed on all the pages by the authorised representatives of

each of the partners and should invariably be witnessed.

35

Annexure XIII

FORM OF UNDERTAKING BY THE JOINT VENTURE PARTNERS

THIS JOINT DEED OF UNDERTAKING executed on this ----------------- day of Two

Thousand And -------- by ----------------- a Partnership firm formed under the -----------------

laws of ----------------- -----------------and having its Registered Office at -----------------

(hereinafter called the "Party No.1" which expression shall include its successors, executors

and permitted assigns) and M/s -----------------a Partnership firm formed under the laws of ----

------------- and having its Registered Office at -----------------(hereinafter called the "Party

No.2" which expression shall include its successors, executors and permitted assigns ) and

M/s-----------------a Company incorporated under the laws of and having its Registered Office

at (hereinafter called the "Party No.3" which expression shall include its successors,

executors and permitted assigns) for the purpose of making a bid and entering into a contract

[hereinafter called the "Contract" {in case of award)] against the-----------------(insert bid

name) of (insert names of the Employer) -----------------, a Company incorporated under the

Companies Act of 1956/2013 (with amendment from time to time) having its registered

office at ----------------- (insert registered address of the Employer) ----------------- (hereinafter

called the Employer").

WHEREAS the Party No.1, Party No.2 and Party No.3 have entered into an Agreement dated

-------------

AND WHEREAS the Employer invited bids for “SELECTION OF CHARTERED

ACCOUNTANT FIRMS FOR REVIEW OF POWER PURCHASE BILLS”

AND WHEREAS Clause 7 “DOCUMENTS COMPRISING THE BID”, inter-alia stipulates

that an Undertaking of two or more qualified manufacturers as partners, meeting the

requirements of Qualification Criteria, the Bid Forms shall be signed by all the partners so as

to legally bind all the Partners of the Joint Venture, who will be jointly and severally liable to

perform the Contract and all obligations hereunder.

The above clause further states that this Undertaking shall be attached to the bid and the

Earnest Money Deposit will be as per the format enclosed with the Bidding Documents

without any restrictions or liability for either party.

AND WHEREAS the bid is being submitted to the Employer vide proposal No dated by

Party

No.1 based on this Undertaking between all the parties; under these presents and the bid in

accordance with the requirements of Clause 7 “DOCUMENTS COMPRISING THE BID”,,

has been signed by all the parties.

NOW THIS UNDERTAKING WITNESSETH AS UNDER:

In consideration of the above premises and agreements all the parties of this Deed of

Undertaking do hereby declare and undertake:

1. In requirement of the award of the Contract by the Employer to the Joint Venture

Partners, we, the Parties do hereby undertake that M/s the Party No.1, shall act as

Lead Partner and further declare and confirm that we the parties to the Joint Venture

36

shall jointly and severally be bound unto the Employer for the successful performance

of the Contract and shall be fully responsible for the design, manufacture, supply and

successful performance of the equipment in accordance with the Contract:

2. In case of any breach or default of the said Contract by any of the parties

to the Joint Venture, the

party(s) do hereby undertake to be fully responsible for the successful

performance of the Contract and to carry out all the obligations and

responsibilities under the Contract in accordance with the requirements of the

Contract.

3. Further, if the Employer suffers any loss or damage on account of any

breach in the Contract or any shortfall in the performance of the equipment in

meeting the performances guaranteed as per the specification in terms of the

Contract, the Party(s) of these presents undertake to promptly make good such

loss or damages caused to the Employer, on its demand without any demur.

It shall not be necessary or obligatory for the Employer to proceed against

Lead Partner to these presents before proceeding against or dealing with the

other Party(s), the Employer can proceed against any of the parties who shall

be jointly and severally liable for the performance and all other

liabilities/obligations under the Contract to the Employer.

4. The financial liability of the Parties of this Deed of Undertaking to the

Employer, with respect to any of the claims rising out of the performance or

non-performance of the obligations set forth in this Deed of Undertaking, read in

conjunction with the relevant conditions of the Contract shall, however not be

limited in any way so as to restrict or limit the liabilities or obligations of any

of the Parties of this Deed of Undertaking.

5. It is expressly understood and agreed between the Parties to this

Undertaking that the responsibilities and obligations of each of the Parties

shall be as delineated in Appendix – I to be suitably appended by the Parties

alongwith this Undertaking in its bid to this Deed of Undertaking. It is further

undertaken by the parties that the above sharing of responsibilities and

obligations shall not in any way be a limitation of joint and several

responsibilities of the Parties under the Contract.

6. It is also understood that this Undertaking is provided for the purposes of

undertaking joint and several liabilities of the partners to the Joint Venture for

submission of the bid and performance of the Contract and that this

Undertaking shall not be deemed to give rise to any additional liabilities or

obligations, in any manner or any law, on any of the Parties to this

Undertaking or on the Joint Venture, other than the express provisions of the

Contract.

7. This Undertaking shall be construed and interpreted in accordance with the

provisions of the Contract.

8. In case of an award of a Contract, we the parties to this Deed of Undertaking

do hereby agree that we shall be jointly and severally responsible for furnishing

37

a Contract performance security from a bank in favour of the Employer in the

currency/currencies of the Contract.

9. It is further agreed that this Deed of Undertaking shall be irrevocable and

shall form an integral part of the bid and shall continue to be enforceable till

the Employer discharges the same or upon the completion of the Contract in

accordance with its provisions, whichever is earlier. It shall be effective from

the date first mentioned above for all purposes and intents.

IN WITNESS WHEREOF, the Parties to this Deed of Undertaking have through

their authorised representatives executed these presents and affixed Common Seals

of their companies, on the day, month and year first mentioned above.

WITNESS For Party No 1

I. -------------------------- For and on behalf of M/S----------

II ------------------------- (Signature of the authorized representative)

Name ....................

Designation .............

Signature

WITNESS For Party No 2

I. -------------------------- For and on behalf of M/S----------

II ------------------------- (Signature of the authorized representative)

Name ....................

Designation .............

Signature

Note:

1. For the purpose of executing the Joint Deed of Undertaking, the non-

judicial stamp papers of appropriate value shall be purchased in the name of

Joint Venture.

2. The Undertaking shall be signed on all the pages by the authorized

representatives of each of the partners and should invariably be witnessed.