s milma Malabar Regional Co-operative Milk Producers' Union Limited Head Office, Kunnamangalam, Kozhikode 673571,, Kerala, Ph: 0495 - 2805418, 2805417,280416 Fax: 2800648, www. malabarmilma. com; E-mail : ho. asc@malabarmilma. cogp EXPRESSION OF INTEREST REF No.MRUiACTS/55/9 1 l21l9-20 I Inviting Expression of Interest for Internal Audit for the year 2019-20 \ milrna. Malabar Regional Co-operative Milk Producers' Union Limited Head Office, Kunnamangalam, Kozhikode 673571, Kerala, Expression of Interest for Internal Audit for the year 2019-20 Ph: 0495 -2805418,28054 16,2805417 Fax: 2800648, www.malabarmilma.com; E-mail: [email protected] -1.Malabar Regional Co-Operative Milk Producers' Union Ltd. (MRCMPU Ltd.) invite Expression of Interest for Internal Audit for the year 2019-20from reputed firm of Chartered Accountants in the various units of MRCMPU Ltd. The firms should be well-established and experienced in Internal Auditing and other accounting jobs. The term of Internal Auditfwill be for a period of three years with effect from 01.04.2019 as per the terms and conditions attached with this notification, subject to satisfactory completion of the first year Audit and reasonable hike in the fees will be granted on mutual consent during 2nd and 3'd year. Interested and eligible Chartered Accountants firms may obtain further information from the Head Office of the Malabar Regional Co-operative Milk Producers' Union Limited, Peringolam (P. O), Kunnaman galam, Kozhikode. 1. The offer shall be submitted in two cover system consisting of technical qualification and price offer. The price offer shall contain a detailed working of costing for the price. The price offer of those who qualifu in the technical qualification only wil1be considered for opening. 2. Detailed terms and conditions are contained in the offer document of the above work which is uploaded in the Kerala Government e-portal www. etenders.kerala. gov. in a. Offer reference No : No. MRU/ACTSI 55 19 I 12019 -22 b. Estimated offer : Rs.10.00 Lakhs per year including GST c. Offer download : Can be downloaded from the Websitewww. etenders.kerala. gov. in - d. Offer publishing date : 20.05.2019, 1 1.00 hrs. e. Offer submission closing date : 04.06.201 9, I 7.00 hrs. f. Offer opening date : 06.06.2019, 1 1.00 hrs. o b' Offer validity :24 days I(ozhikode sd/- MANAGING DIRECTOR I/c 20.05.20t9 2 - TERMS AND CONDITIONS FOR THE OFFER 1. ELIGIBILITY CRITERIA a) The Chartered Accountancy Firm should have necessary Registration Certificate from the Institute of Chartered Accountants of India. Q) fne Chartered Accountancy Firm should have valid EPF registration, ESI registration, GST registration and independent EPF and ESI code numbers if applicable. c) The Chartered Accountancy Firm should have PAN of Income Tax Department.. d) The partners of Chartered Accountancy Firm should also have member number issued by the Institute of Chartered Accountants of India. e) The Chartered Accountancy Firm should submit their detailed profile along with the offer. 0 The Chartered Accountancy Firm should have its office at Calicut and those who have more branches/ tie ups, under MRCMPU's area operation from Kasaragod district to Palakkad district will be prefened. g) The Chartered Accountancy Firm should have at least Ten years' of experience in the field of providing internal audit service and accounting job. h) As on 01-07-2019, the Chartered Accountancy Firm should have minimum three qualified chartered Accountants including partners and names of Chartered Accountants shall be uploaded with the offer. i) The Firm's annual financial turnover during the last three years shall not be less than Rs.50 lakhs and the proof of the financial turnover of the last three years (audited income & expenditure statement or IT return) shall be uploaded along with the offer. j) Proof of the above eligibility criteria shall be uploaded along with the first cover ie technical qualification , failure of which will lead to disqualification of the offer. 2. pISQIIALIf'ICATTONS a) The Chartered Accountancy Firms who were appointed earlier as internal auditors by MRCMPU Ltd. during previous years and who were unable to operate the work successfully, are not eligible for being reappointed. b) The Chartered Accountancy Firms who do not submit along with the offer, the copies of documents, possession of registrations/licensesflPAN /Licence from the \-- Institute of s Chartered Accountants of India as in Sl .no 1(a) above, are not eligible for being appointed. Units to be covered Head office at Peringolam, Kunnamangalam. Kozhikkode Dairy at Peringolam, Kunnamangalam. Kannur Dairy at Pallikkunnu, Kannur. Palakkad Dairy at Kalleppully, Palakkad Kasaragod Dairy at Mavungal, Kanhangad. Waynad Dairy at Chuzhali, Kalpetta. MalayoraDairy, Sreekandapuram, Kannur. Central Products Dairy, Naduvattom, Kozhikode. Procurement and Input Centres at Peringolam, Nilambur, Kannur, Kanhangad, Kalpetta, Palakkad, Pattambi, Kottakkal, Attappadi and Vadakara. j. Milk Chilling centres at Nilambur, Mananthavadi, Pattambi, Attappadi, Vadakara, Kottakkal A4oorkanad. k. Marketing Depots at Chinakkal (kottakkal)/Moorkanad, Ulliyeri, Nilambur, Pattambi, Alathur, Koyippady, Ramanattukara,Pathiripala and Nadapuram. 1. Ginger processing/feed milling plant, Meenangady. 3. The Scope of Work The Internal Audit shall cover all activities of Head Office, Dairy Plants at Kozhikode. Kannur, Palakkad, Waynad , Kasaragod, Sreekandapuram, CPD Naduvattam and all other Units mentioned above. The work includes: 1. Verification of all books of accounts like Ledger, Cash Book, Bank Book, Journal, Register, Voucher, and other relevant records and the accounting system of HO and units. 2. Verify all records of purchase, production / manufacturing, sales, stores and all other operations, machines, vehicles etc. of Head Office and units. 3. Critically examine the various software packages used for different operations in HO and units viz. Marketing, Financial, HR, Milk billing, Stores/ Inventory, RMRD, production etc. and evaluate their performance and adequacy compared to the volume and nature of business and transactions. 4. Critically examine the various internal control systems of all units with respect to each operational area and report whether they are sufficient. If not sufficient report the same with specific suggestions for improvement. 5. Critically examine the major elements of cost such as transportation, power, fuel, repairs, consumables etc. and advise the Management for proper control, where ever necessary. 6. A route wise analysis of T C for Milk and Milk products with respect to the capacity utilisation and percentage on the value of goods transported. 7. Physical verification of stock of finished goods of milk, milk products and other products, raw materials, stores and other inventories of all units including marketing depots. It shall be done at the end of each reporting quarter (June 30, September 30, December 31 and March 31) in case of Dairy plants and at the time of each visit to other units. B. The stock registers of raw materials, finished goods and the stores records shall be verified at frequent intervals and report the mistakes / differences to the concemed unit head in writing for rectification, copy of which may be attached in the Intemal audit report. Surprise verification of major stock items and cash shall be conducted at least once in a month. You have to certify the quarterly Stock statement prepared in the Dairy / Chilling centers and submit along with the Internal Audit report. 9. Internal audit shall cover all operational areas which include purchase of milk, other raw materials, consumables, packing materials etc., processing, quality control, packing, sales, marketing, transportation, cash collections, marketing depot operations, man power outsourcing etc. 10.You have to regularly verify the records of production, quality control, marketing section etc. and reporl that the records are maintained properly and reconciled regularly, and if necessary help in reconciling the same. 1 l.Union has been outsourcing many unskilled jobs to the independent labor / other contractors. You have to examine all such agreements and payments to such contractors and see that the statutory requirements are complied with and all payments are made as per the agreement only. 12.Ensure that various rules and procedures and statutory requirements to be followed in respect of various activities are fully complied with. 13.Lot of amendments in commercial laws is regularly taking place which requires compliance of various statutory requirements. You have to reporl whether such requirements are correctly complied with. 14.Report that various orders. circulars, instructions like price of products, norms and procedures for certain activities etc. issued from the Head Office are properly implemented and complied with. 15.Verify I certify the correctness of the quarterly trial balance, P&L Account and Balance Sheet of Head Office and Dairy Plants prepared by the respective units using the computerized Accounting Package with schedules. l6.Verification of the books and records and certification of all Statements of Expenditure, like RKVY (RashtriyaKrishiVikasYojana), RSVY (Rashtriya Sam VikasYoj ana), SC /STDevelopment Projects; NDP (National Dairy plan), NPDD, GOK Plan Fund etc. or other statements to be submitted to the project authorities (ie. Gol,t of India, Govt. of Kerala, NDDB etc) as per the format and time schedule prescribed. lT.Verification