Housing & Urban Development Corporation Limited (HUDCO)

(A Government of India Enterprise)

RAIPUR REGIONAL OFFICE,

1-B, Surya Apartment, Katora Talab,
Neatji Chowk, Main Rd, Raipur, Chhattisgarh 492001
Ph. +91(0771) 2427796, 2425517, 4053738
Fax : +91(0771) 2422023

Ref.No. HUDCO/RRO/355/2024-25/ Date:03.10.2024

Sub.:- Appointment of Chartered Accountant Firm as an Expert for carrying out Risk Based
Internal Audit assignment including review and updation of Internal Financial
Controls for the Financial Year 2024-25 in Raipur Regional Office of HUDCO.

Sir/Madam,

Housing and Urban Development Corporation Ltd. (HUDCO), a premier techno financing institution
under the Ministry of Housing and Urban Affairs, Govt. of India is engaged in providing long term
loans for financing of Housing and Urban Infrastructure Projects.

HUDCO, Raipur Regional Office invite offers from eligible Chartered Accountant Firm as an Expert
for carrying out Risk Based Internal Audit assignment including review and updation of Internal
Financial Controls for the Financial Year 2024-25.

The following conditions are applicable with regard to submission of quotation for award of work by
HUDCO Regional Office Raipur.

A. The Scope of Work briefly covers the points as per enclosed Annexure ‘II’
B. Selection Procedure:

The selection of the firm shall be based on Technical bid and Financial bid :
a. Firms shall be short listed on the basis of technical bid. While evaluating the technical bid,
Audit Firm’s capability to perform the certification work may be assessed and inspection of their
office may be carried out so as to establish the fact that the Audit Firm has proper local office.
b. Financial Bid will be opened in respect of firms short listed based on Technical Bid.

C. Eligibility Criteria :
1. This process of appointment of Chartered Accountant firms as an expert for carrying out Risk
Based Internal Audit assignment including review of Internal Financial Controls for the
Financial Year 2024-25, should be in conformity with the HUDCO guidelines/ directions of
CVC/ CVO circular issued from time to time. While making selection of CA Firm, following
points (minimum technical criteria) may be considered:

a) The CA Firm should be a Partnership/Limited Liability Partnership (LLP) registered with the
Institute of Chartered Accountants of India (ICAI) and should have minimum Five Years
Standing. (To be verified from the Certificate of Registration issued by ICAI).

b) The bidder to produce PAN and GST Registration Certificate, MSME certificate (if applicable
along with the TREDS registration Certificate -If not available, CA firm should comply with it
before the contract is awarded)
 c) The CA Firm should have carried out Internal Audit assignment/Statutory Audit in Branch
Office/Head Office of at least two Public Sector Undertakings/ Public Sector Banks/Public
Financial Institutions/Public Sector NBFCs in the last five Financial Years. (Assignment as
Stock Audit not to be considered).

d) CA Firm should have minimum three number of partners, minimum five numbers of
paid assistants (qualified CA/CMA/ semi qualified CA/CMA-Inter).

e) CA Firm should have local office having minimum five working staff (including one
partner and one qualified CA).

f) CA Firms presently appointed as Consultant in the concerned Regional Office is

not eligible for appointment at respective Regional Office.

D.CA Firm to give an undertaking –

i. That none of the partners has any relation with any employee of HUDCO and also none of
them has any relationship within the meaning of Section 2(76) of the Companies Act, 2013
and also that none of them has any relationship with the Statutory Auditors or such related
work of the HUDCO which will have conflict of interest with the current assignment and also
declare the compliance under section 184 and 188 of the Companies Act, 2013.
ii. Certified that we have not been appointed for carrying out certification/consultancy or
such related work of the same Regional Office which will have conflict of interest with the
current assignment.

iii. There has not been any disciplinary action initiated by ICAl or any regulatory authority
against the firm during last five years. As on date, the disciplinary action should have been
disposed off.

iv. The Firm has not been banned, delisted or debarred from business by any Regulatory
Body / Statutory Body / PSU / Govt. Department or any other Institution.

E. Terms and Conditions:–

1. While evaluating the technical bid, CA Firm's capability to perform the assignment should be assessed
and inspection of their office to be carried out so as to establish the fact that the CA Firm has proper local
office with adequate staff.
2. The Audit team will consist minimum of one Chartered Accountant and one paid assistant
{qualified (CA/CMA)/semi qualified (CA/CMA- inter) headed by partner of the CA Firm.
3. Detailed Draft Notice Inviting Tender has been prepared and placed for approval. CA firm is
required to undertake 100% verification of all activities prescribed in the scope of work. The
scope of work briefly cover the points as given in Annexure-II). The detailed break up of Scope
of Work should be provided to the shortlisted bidder at the time of award of contract after
approval by the competent authority.
 4. In terms of GFR rule 170(iii), Bidders are not required to pay Bid Security I.e. Earnest
Money Deposit (EMD), instead Bid Security Declaration in the prescribed format
(Annexure-A) is required to be submitted.
5. The NIT shall be uploaded on the HUDCO's Website (www.hudco.org.in) and quotations shall
be invited by uploading the NIT on GeM (Government e-Marketplace) Portal
(www.gem.gov.in). The selection of CA Firms to be carried out after following the two bid
system i.e. Technical bid should be uploaded along with the signature of authorised signatory
on each page and financial bid should be uploaded separately along with the signature of
authorised signatory. Both the bids should be submitted before the specified date of
12.10.2024 and time 03.00 pm. The Financial Bid of short listed firms on the basis of Technical Bid shall
be opened on 14-10-2024. Financial bids of only those bidders be opened who have qualified the
technical criteria prescribed in the tender.
6. The Firm may be engaged initially for a period of one year for internal audit for FY 2024-
25 (01-04-2024 to 31-03-2025). However, the appointment may be renewed on yearly basis
based on the satisfactory performance for a further period of two years on same terms &
conditions including fees with slight modification in the scope of work as per requirement with
the approval of H.O.
7. Copy of ICAI Registration Certificate, PAN Card, Local Address Proof, GST Registration
Certificate and MSME Certification (if applicable along with the TREDS registration Certificate
-If not available, CA firm should comply with it before the contract is awarded) may be
submitted along with the Technical Bid.
8. The fees of CA Firm (excluding GST) should not exceed Rs.60,000/- (Rupees Sixty thousand
only) for the Financial Year 2024-2025.
9. The payment of fees shall be made to the firm on completion of assignment as per the Scope
of Work as under –
On submission of report of First quarter - 15%
On submission of report of Second quarter - 20% -
On submission of report of Third quarter - 20%
On submission of report of Fourth quarter - 25%
Balance 20% shall be released after audit of annual accounts by Statutory Auditors
and issuance of Tax Audit Report.
10. The CA Firm is expected to submit the Audit Report in the prescribed format to be issued
by seventh of succeeding month from the end of the quarter.
11. Regional Office to take timely action for necessary rectifications with a view to keep updated
record. However, CA firm may include those observations in their report to Head Office where
there is difference of opinion and which remain unattended / pending rectification. Further
such observations should be reviewed and their compliance is to be reported in the subsequent
Audit Reports until such time these are rectified.
12. Certificate is required to be submitted by the CA Firm (duly authenticated by Regional Chief)
confirming that the audit has been carried out as per scope of work/checklist and
audit reports have been prepared after discussion with the Regional Chief.
 13. CA firm shall not disclose to any person the confidential information relating to the
assignment or HUDCO's business or operations without prior permission of Head, Internal
Audit Department, Head Office, New Delhi.
14. In case of any dispute between HUDCO and the CA Firm regarding the present assignment
given to the CA Firm at Regional Office/HSMI, the decision of the CMD, HUDCO shall be final
and binding on all the parties.
15. Internal Audit Department, Head Office of HUDCO has the right to replace CA firms if it is
found that the reporting / certification is not of required standard.
16. The Risk Based Internal Audit is to be conducted with the highest standard of professional,
ethical competence and integrity.
17. HUDCO shall have the right to terminate the contract forthwith by giving notice of 30 days at
the address mentioned herein on failure to provide satisfactory service. The decision of
HUDCO regarding dissatisfaction of services/delay/damages caused by CA Firm shall be final.
Further in such an event, HUDCO shall have the right to forfeit the compensation for the
contract and also recover damages without any further notice to CA Firm.
18. The services would be provided to Raipur Regional Office, Housing and Urban Development
Corporation Ltd (HUDCO, 1-B, Surya Apartments, Katora Talab, Neataji Chowk, Main Road,
Raiur, Chhattisgargh 492001.
19. Any damage to company or property due to negligence of the staff posted by CA Firm at
HUDCO, will have to be compensated by the CA Firm.
20. Applicable Tax will be deducted at source from the bills as per the prevailing rules and the
TDS certificates will be issued to the CA Firm.
21. Bidder, before submitting quotations. should clearly understand Hudco's requirement and. in
case, any information/ clarification is required, they may visit Hudco Regional Office during
the working days (Monday to Friday between 10 a.m to 6 p.m. It may be noted that no
clarification/ information after closure of the last date of receipt of quotation, would be
entertained.
22. All bidders to apply through GEM portal only. No bids in physical form shall be
accepted.

Thanking you,

for Housing and Urban

Development Corporation Ltd.

R.Vinayagamurthy
Jt. General Manager(F)
Cell:+91 9443577831
Encl: as above
 ANNEXURE-II(REGIONAL OFFICE)
SCOPE OF WORK IN BRIEF FOR THE FINANCIAL YEAR 2024-25
PART-I

1. RISK BASED INTERNAL AUDIT TO BE CARRRIED OUT ON QUARTERLY BASIS

A. Lending Operations
Sanction and Disbursements
(a) Verify that Loan is sanctioned after receiving proper application, and due process of sanction is followed at RO and HO.
(b) Verify that all statutory and regulatory compliances applicable to HUDCO as per the laid down policy have been undertaken,
concerning with the loan sanctioned.
(c) Verify that applicable charges and rate of interest is charged as per the guidelines and financing pattern, and the same are
recovered during the course of repayment period or prior as per the applicability.
(d) Verify that GST was correctly charged, as applicable, on various charges collected from borrower.
(e) Verify that all legal documents are executed at the time of sanction.
(f) Verify that releases are done after verifying the compliance of sanction conditions, obtaining financial & physical progress
reports, site inspection reports, utilization certificates etc, as applicable, and ensuring that due process of release is followed
as per the laid down procedure.
(g) Verify that, waiver of loan documentation condition, Corporate Debt Restructuring/ Deferment/ Re-scheduling etc was done
after obtaining the approval of Competent Authority.
(h) Verify the calculation of demand dues of principal, interest & penal charges computed for the agencies, and also verify that
the same was communicated timely and confirmation of balances were obtained at periodic intervals regularly.
(i) Verify that valuation report of security was received timely from the borrowers and required steps including top up of security
were taken timely in case of deterioration in value of security. Further, in case top up is not done, than necessary provision
for unsecured/differential amount is done.
(j) Verify that comprehensive implementation of, deferment/ amendment/ waiver in the loan card/ loan ledger, with respect to
OTS/ DRP/ Decree of DRT/ DRAT/ CDR/ , and reschedulement/ Curtailment of loan, was done as per amendment letter
issued by RO in IGL and LMS module.
(k) Verify that the ECL provisioning is done as per norms of HUDCO.
(l) Verify that default/ NPA cases are being reviewed and followed up regularly by Default wing.
(m) Verify that calculation for OTS has been done correctly as per the guideline and OTS was done only after obtaining the
final approval of the Board.
(n) Verify the data extracted from the General Ledger module matches with the project loan accounting module at the end of
each quarter and ensure that the calculation of interest income and interest accrued is correct.
(o) Verify that income accrued on NPA accounts is excluded from total income and income on NPA accounts is booked on
actual/ realization basis.
(p) Verify compliance in respect of Fair Practices Code, Most Important Terms & Conditions, Grievance Redressal Mechanism.

B. Cash and Bank

a) Review all payments and receipts, if applicable.

b) Review the accounts if any and its monitoring along with reconciliations wherever applicable.

C. Assets
a) Review the record of assets at purchase and writing off,as per approval of the competent authority. Review that records
are maintained and implemented in books as per policy.
b) Review all advances, overdues, their recovery, and long pending entries.

D. Fixed Assets
a) All purchases are as per regulatory directions (GFR rules 2017) and as per laid down policies, with safeguarding of assets
(timely renewal of insurance) and real time record maintenance.
b) Review of fixed assets (tangible and intangible) along with their capitalization on correct time/date,
depreciation/amortization of assets and their disposal, lease rental against the leasehold properties, is as per policy and
companies act 2013, wherever applicable.
c) Review that the record register is maintained appropriately.

1
E. Liabilities
a) Examine/review the necessary documents for timely payment by HO including MSME payments as per policy.
b) Verify that documents for payments are forwarded to HO in accordance with the rules and orders governing them and
wherever applicable , the arithmetical calculations are correct.
c) Final claims of employees accompanied with supporting documents are correctly paid by HO and over payment, if any,
are dealt promptly to regularize the same. Recoveries/deductions wherever necessary are made from the bills and properly
disclosed to HO.
d) Verification of supporting documents of administration expenditure bills, staff advances, Festival Advances, Vehicle
Advance, bills and other payments, sent to HO are checked and physical progress is ascertained, wherever required.

F. Borrowings
a) The public deposit scheme is scheduled to be closed in FY 2024-25. Thereby deposits are existing only in Kolkata, Mumbai
and NCR offices.
b) Verify the maturity of deposit as per HUDCO policy and filing of returns, if required.

G. Income
Review that details of all sources of income (rental income, fees an commission income, sale of services, other income)
have been sent to HO as per laid down policy and agreements executed.

H. Expenses
a) Asses that the CSR policy is followed for sanction of the project and agreement is executed. Thereby, the fund disbursal
proposal is sent to HO as per policy and compliance of sanction conditions.
b) Review that all contracts for repairs & maintenance, legal and professional fees (Independently of HUDCO and other
incurred on behalf of borrower ), advertisement, publicity & sponsorship, are awarded as per latest regulatory directions
(GFR rules 2017) and as per laid down policies, to eligible agencies and proposal for payment was sent to HO as per the
job order and compliance of contract agreement along with certifications wherever required.
c) Review that the due procedure was laid and followed and wherever required empanelment for services was done. Also
review that the budget expenditure was framed timely and actual expenditure was done accordingly and as per approval
of the competent authority.

I. Statutory Compliances
a) Ensure compliances with respect to notices received for Income Tax Act’1961, GST Act ‘2017 etc.
b) Verification of Quarterly/Half yearly/Annual Certificates if required by HO, to be submitted as per prescribed formats.

J. Payroll
a) Review that all relevant supporting documents pertaining to TA/DA, loans and advances, other employee benefits, ets are
sent to HO as per the latest policies.

K. Human Resources
a) Review the compliance and updation of records as per HUDCO policy for employee separation, employee transfer,
employee training, empanelment of hospitals/health centers and medical reimbursements. Ensure the supportings
wherever required.

L. Information Technology
Review of administration and monitoring of information systems, data protection, physical security, business continuity,
disaster recovery plan.

M. Legal

Review that panel of advocates is maintained as per eligibility criteria and assignments are allotted to them only.
Performance of empanelled advocates is evaluated annually and incapable advocates are delisted.

N. Risk Management
a) Ensure compliance as per the risk management framework/methodologies and risk mitigation measures are taken as per
policy wherever required.
b) Periodic risk categorization, risk rating etc, as per policy is done and forwarded to HO.

O. Fraud Monitoring
Review the timely monitoring and submission of returns of frauds, FIR registration, etc as per policy and regulatory
requirements.

2
 PART-II

INTERNAL FINANCIAL CONTROLS

(a) To update the internal control flow charts as per newly implemented ERP system.
(b) To issue quarterly report on Internal Control deficiencies identified during the quarterly audit and suggest corrective
measures.
(c) CA firm to independently review and appraise the system of control throughout the year as per risk control matrices,
mitigation plan prescribed in the various activities and recommend improvement to internal control. Facilitate in
following good practice in managing risks efficiently.
(d) Review of Test of Designs including addition/updation/modification of flow charts on annual basis.
(e) Comment on the adequacy and effectiveness of Internal Financial Controls on quarterly basis.
(f) Compliance of advisories issued by Internal Audit Wing from time to time.
(g) To give necessary guidance in response to statutory/government auditors' queries in regard to Internal Financial
Controls and suggesting corrective action on the part of HUDCO.
(h) Any other activity review/reporting necessary in connection with Internal financial Control not specified above.

PART-III

COMPLIANCE OF AUDIT OBSERVATIONS

(a) 100% verification of all the activities/checkpoints as mentioned in Part-I and Part-Il.
(b) Compliance status of outstanding observations of previous audit reports and monitoring of prior audit issues along-
with action taken report in the prescribed format,
(c) The points mentioned in the scope are indicative in nature. The firm may be requested to look into any other activity
as decided by the management during the course of audit.
(d) To suggest an addition in the areas required to be covered in the Risk Based Internal Audit Plan.

Note: ERP manuals to be followed and adhered to.

3
 Annexure-III

Offer for engagement of Chartered Accountant in HUDCO Regional Office, Raipur

Technical Bid

1. a) Name and address of the Firm & its Main :

proprietors/partners
b) Address of office at Raipur (copy of address
proof to be enclosed)
2. Year of establishment :

3. Registration No. :
(enclose copy of ICAI Registration Certificate)
4. Names & Details Profile of Partners :

5. GST registration no. (Enclose copy of GSTIN Regn.) :

6. PAN No.( enclosed copy of PAN card) :

7. Audit Assignment carried out ( as per Point 3 c of :

eligibility criteria above ) (enclose copies of
supporting documents)
8. List of clients (Attach Separate Sheet) : Nature Period
9. a) No. of Partners (Minimum three) :

b) No. of Paid Assistants {qualified (CA/CMA)/ :

semi qualified(CA/CMA-inter)}-(minimum five)
c) No. of other supporting /employed Staff. :

10. Name/list of Partner and working staff available :

at Local Office (at Raipur)-(minimum 5
working staff including one partner )
11. Undertaking as per point No-3(g) of NIT :

No. of enclosures:

Date:

Signature: Name of Authorized Person:

Name of CA Firm:
Seal

5
 Annexure-IV

Financial Bid for Appointment of Chartered Accountant firm as an expert for carrying out
Risk Based Internal Audit , Review of Internal Financial Controls & Certification of
Accounts of HUDCO Regional Office, Raipur for the Financial Year 2024-2025
GST as Total Annual
Professional Charges
Activities applicable Fee ( inclusive
(Rs.) of GST)
As per Scope of Work at
Annexure-I indicated in the
NIT

Note: 1. The Total Audit/Certification Fee should not exceed the upper limit as prescribed at point
no-9 of the tender document and should be in accordance to the estimated tender value
of NIT.

2. The fees quoted should be both in figures & words.

6
 Annexure-A

On Letter head of the Firm

FORMAT FOR BID SECURITY DECLARATION

Whereas, I/we___________(name of the Bidder) have Submitted Bid for _______ (name of work)

I/we hereby submit following declaration in lieu of submitted Bid Security.

(1) If after the opening of tender, I/we withdraw or modify my/our bid during the period of validity
of tender (including extended validity of tender) as specified in the tender document,
Or

(2) If, after the award of work, I/we fail to sign the contract within 7 (seven) days of
issuance of award letter,

I/we shall be suspended for one year and shall not be eligible to bid for tenders issued by HUDCO
from date of issue of suspension order.

Signed by the Authorized Signatory