Central Madhyapradesh Gramin Bank Intends to empanel Chartered Accountant firms for conducting concurrent audit

DATE:-02/12/2015

EMPANELMENT OF CONCURRENT AUDITORS

Central Madhyapradesh Gramin Bank Intends to empanel
Chartered Accountant firms for conducting concurrent audit work at below
mentioned branches:

 The number of branches may increase or decrease as per
the requirement of Bank and Bank reserve the 
sole discretion in this regard. 

Chartered Accountant firms interested in empanelment for
conducting concurrent audit may submit their applications in the enclosed
format along with necessary certificates/documents latest by 15-December-2015
by 05.00 pm to

General Manager(Audit& Insp.Dept)

CENTRAL MADHYAPRADESH GRAMIN BANK

Head Office:800/19,South Civil Lines

CHHINDWARA(M.P.)480001

All the application must be sent in a sealed envelope
containing all necessary certificates/documents. The sealed envelope must be
superscribed as “APPLICATION FOR EMPANELMENT OF CONCURRENT
AUDITOR-2015-16”

Merely meeting the eligibility criteria doesn’t entitle
Chartered Accountants firm for empanelment. Bank reserves the Sole discretion
for empanelment of Chartered accountant firms. The Bank reserves the right to
reject any or all the applications without assigning any reason there of.

 ELIGIBILITY CRITERIA FOR EMPANELMENT 

 Applications from firms of Chartered Accountants is invited
with the following eligibility criteria location-wise:-

For District Head
Quarter Branches/HO departments

• Professional Standing: More than 3 years(certificate to be
enclosed)

• Partnership Firms Only(Partnership deed to be enclosed)

• Of which FCA/ s at least: 1(certificate to be enclosed)

• &DISA or CISA :1(certificate to be enclosed)

• Experience as Concurrent Auditors or Statutory Auditors in
minimum 3 Public Sector Banks(certificate to be enclosed)

• Experience of the Firm only as Statutory and Concurrent
Auditors is to be taken and not that of individual partner shall be
counted(certificate to be enclosed)

 For Branches other
than above

• Professional Standing:More than 2 years(certificate to be
enclosed)

• Partnership/proprietorship firms only(certificate to be
enclosed)

• Experience as Concurrent Auditors or Statutory Auditors in
at least 1 Public Sector Bank(Certificate to be enclosed)

• Experience of the Firm only as Statutory and Concurrent
Auditors is to be taken and not that of individual partner shall be
counted(Certificate to be enclosed)

 1. The firm should be having Chartered Accountant(s) as
partner(s)/proprietor.

2. The assignment of concurrent auditor shall be given
initially for the period of one year.

3. On completion of the yearly assignment, The concurrent
Auditors may be re-appointed for a further period of one year on each occasion
depending upon their performance.

4. The firm or its proprietor/partners have not been the
subject of inquiries in the past by the Institute of Chartered Accounts of
India as per the provisions of Section 21 of the Chartered Accountants
Act,1949, and no such inquiry is pending , initiated , or contemplated by the
Institute as on the date of application as well as date of acceptance of
assignment

5. If Any serious acts of omissions or commissions are
noticed in the working of concurrent auditors their appointments shall be
cancelled and the fact shall be reported to NABARD and ICAI.

6. Where there are group of firms of Chartered Accountants
having common partners, only one of the firms in the group will be eligible for
assignment of concurrent audit

7. The firm would normally be allotted concurrent audit of
only one branch of the bank

8. Besides Chartered Accountants, the firm should have other
qualified and experienced staff, infrastructure and office within an
approachable distance from the location of the auditee branch/office to
undertake concurrent audit

9. The firm which conducts Statutory Audit of the bank shall
not be considered for appointment as concurrent auditor by the bank during that
year and the next year

10. The firm which has a partner/proprietor who is also
partner/proprietor of the firm entrusted with the Statutory Audit of the bank
shall not be considered for appointment as concurrent auditors in the bank. In
other words, sister/ associate concerns of the firm carrying Statutory Audit of
the bank shall not be considered for appointment as concurrent auditors of the
bank. (Undertaking should be attached) 11. If any of the Directors of the bank
is a partner/proprietor in a firm, such firm shall not be considered for appointment
as concurrent auditor

12. In case the performance of the concurrent auditor falls
short of the expectation of the management or Audit Committee of Board, the
bank shall terminate the assignment of the concurrent auditor at any time.

13. After completion of assignment, the firm may be
considered for audit assignment in other locations or areas. This will be
purely at the discretion of the bank and no rights whatsoever shall accrue to
the firm for such assignment

14. At any one point of time, not more than one audit
assignment would be awarded to a firm. An audit assignment that needs to be
carried out across the branches/units at different locations would be
considered as a single assignment for this purpose

OTHER TERMS AND CONDITIONS

1. The Chartered accountant firm would be responsible to
examine and comment on all the areas specified by the Bank/RBI/NABARD with
regard to audit of the branches.

2. Concurrent Audit work of a branch would include interalia
income leakage,verification audit,comments on internal checks,counter
checks,system and procedures,documentation, securities,Physical verification of
assets financed by the bank on random basis and any other special audit
assignments.

3. The CA firm would do the audit work themselves and may
depute an experienced employee/article to the branch for the purpose,who should
visit the branch on all working days. The partner shall visit the branch at
least on 5 working days in a month.

 4. Franchise of the
Audit work will not be permitted under any circumstances. Reporting of such
events may result in de-empanelment of the firm and its constituents.

5. The CA firm or any of its employee shall not,without the
Bank’s written consent,disclose the terms of acceptance or any provision
thereof or any specification or information furnished by the or on behalf of
the bank in connection therewith,to other person or entity unless legally
required to do so.

6. The empanelled CA firms selected for the assignment of
concurrent audit work for a particular branch would be given an offer letter
along with the terms and conditions of conducting the concurrent Audit. On
receipt of their acceptance of the Bank’s offer they will be given an
appointment letter.

7. The auditor must strictly adhere to the schedule,as may
be specified in the in the letter of offer for performing the assignment
including submission of reports.

8. The bank shall have the right to assign any concurrent
audit assignment and terminate the arrangement without assigning any reason at
its sole discretion.

9. The audit firm appointed as branch statutory auditor
/Central statutory auditor for the bank for the financial year 2015-16 will
become ineligible for the Concurrent Audit work.

10. The bank reserve its right not to accept any or all the
proposals,or to accept or reject a particular proposal at its sole
discretion,without assigning any reasons whatsoever.

11. Any document,Other than the offer itself,remain the
property of the bank and all copies thereof shall be returned to the Bank on
completion of assignment ,if required by the bank.

12. The auditor shall not ,without the bank’s prior written
consent ,make use of any of the Bank’s any document or information except for
the purposes of performing the assignment.

13. When there are common partner in more than one firm
,only one of the firms would be considered for the empanelment. 

PERFORMANCE REVIEW

 The performance of the empanelled Concurrent Audit Firms
would be reviewed on monthly basis mainly with the following yardsticks:

1. Quality of Audit Reports

2. Timely completion of audit assignment and submission of
report

3. Effort taken for on the spot rectification of
irregularities

 4. Making the staff
aware about the implication of deficiencies/irregularities pointed out.

5. Detection of Income Leakage.

6. Level of compliance of various statutory/Legal/Bank’s
laid down system and procedure of the branch. 7. Any other parameters which the
bank may decide/determine from time to time.

8. Branch visiting by Article/Partner/Proprietor as per
norms.

 DE-EMPANELMENT

 The Bank reserves the right to de-empanelment of firm of
Chartered accountant as its sole discretion without giving any reason
whatsoever.

 PROCESS OF EMPANELLEMNT 

 The interested firms will have to submit request for
empanelment on the enclosed application form .The proposal will be opened and
shortlisted on the basis of eligibility criteria as mentioned in this document.
These firms would further be evaluated on the basis of other criteria as may be
determined by the bank.

 DOCUMENT TO BE SUBMITTED WITH THE APPLICATION 

 The CA firm shall submit the following documents along with
the application:

1. Hard Copy of the Application

2. Acceptance of the terms and conditions as stipulated vide
this document

3. Copies of letter of empanelment by any other banks.

4. Copies of certificate of experience and conduct of
Concurrent Audit in relation to similar assignments performed,in other banks if
any.

5. Copies of Certificate issued by the professional bodies
in respect of relevant qualification of professionals as reported in the
application.

6. Undertaking about not carrying statutory audit of CMPGB.

7. Undertaking about not any director of CMPGB is
partner/proprietor in the firm,

 VALIDITY OF PROPOSAL

 The proposal for empanelment shall be valid for a period of
3 months from the closing date for acceptance of the proposal.

FORMAT AND SIGNING OF PROPOSAL

 Each proposal shall be made in the legal name of the
participating firm and shall be signed and duly stamped by the person duly
authorized to sign on behalf of the participating firm. An authority from the
participating firm to this effect is to be submitted along with the proposal.

 EVALUATION 85 COMPARISION OF PROPOSALS

 Only proposals from CA Firms meeting the eligibility
criteria and submitting complete and responsive information will proceed to the
stage of being evaluated and considered.

Merely meeting the eligibility criteria would not
automatically entitle the firm for empanelment.The Firms to be kept on the
panel would be at the sole discretion of the Bank.

The bank reserves the right to reject any or all the offers
without assigning any reasons. The evaluation procedures to be adopted for the
empanelment will be the sole discretion of the bank and bank is not liable to
disclose either the criteria or the evaluation report/reasoning to the
participating firm(s).

 INFORMATION OF EMPANELMENT

 If empanelled, The information in this regard shall be sent
to the empanelled firms at the address provided in the application form or the
last known address. Any change of address of the participating firm should
therefore be promptly notified to the GENERAL MANAGER(A85ID) CENTRAL
MADHYAPRADESH GRAMIN BANK, HEAD OFFICE, 800 / 19 , CHHINDWARA-480 00 1 (M . P.)

 CONFIDENTIALITY AGREEMENT/UNDERTAKING

 As the firms selected for empanelment shall have the access
to the date and information of the bank while conducting the concurrent audit
of the various branches,Bank will require the Firm(s) to sign a confidentiality
agreement/undertaking for not disclosing or part with any information relating
to the bank and its data to any persons,as may come into possession of the firm(s)
during the course of audit.

 TENDERING OF ACCEPTANCE

 The successful firm(s) shall be required to give an
acceptance to the Bank containing the terms and conditions as may be determined
by the bank to be necessary for the due performance of the work on receipt of
the offer for conducting audit(s) of branch(es) with in a maximum of
fifteen(15) days from the date of receipt of offer letter.

 INDEMNIFICATION

 The auditors shall,at their own expense,defend and indemnify
the Bank against any claims due to loss of data/ damage to arising as a
consequence of their conducting audit of the branch/office.

 DELAY IN THE AUDITOR’S PERFORMANCE

 The auditors must strictly adhere to the implementation
schedule,as specified in the letter of undertaking for submission of reports
failing which the Bank may resort to termination of the assignment and
empanelment.

 REMUNERATION

 Fees shall be payable to CA firms on the basis of average
business figure of the branch for the previous 2 financial years only(104
weeks).The present fee structure is as follows:

PAYMENT TERMS

 The audit fee shall be paid to the concurrent audit firm on
submission of the relevant audit reports and the relevant Bill along with the
supported documents.

This payment will be subject to deduction of prevailing/
applicable T.D.S.

 DISCIPLINARY ACTION FOR PROFESSIONAL MISCONDUCT

 The Audit firm shall be subject to Disciplinary Rules as
enumerated in section(21) of the Chartered accountants act 1949.

Download Complete Application