KARNATAKA STATE POLICE HOUSING CORPORATION LIMITED No. 59, Richmond Road, Bangalore-560 025

Ph: 080-25584102 Extn. 329/317 Fax 080-22942219 Web site: www.ksphc.org

TECHNICAL BID (Profile of the CA firm shall be enclosed)

Appointment of Internal Auditors to KSPHCL for the financial year 2014 – 15 (To be submitted in separate cover duly mentioning on the cover as “Technical Bid”)

ISO 9001:2008 QMS 004 ISO 14001:2004 Registered A MEMBER OF Registered C0250/0243 IAF MLA IBA-0227.07

An ISO 9001 - 2008 & ISO 14001:2004 Certified Government of Karnataka Company

0d1277ca8b0de28848a2475f41eb8c1f.docPage 1 of 9 KARNATAKA STATE POLICE HOUSING CORPORATION LIMITED # 59, Richmond Road, Bangalore-560 025 Annexure - I Scope and Specification for Internal Auditors for FY 2014-15 Particulars

A. FINANCIAL AND ACCOUNTING TRANSACTION – H.O & DIVISIONS: Vouching of all Receipts Vouching of all Payments Vouching of Journal Verification of BRS Statement Verification of Repayments to Financial Institution Verification of Statutory Payments & Receipts Ledger Scrutiny Verification of EMD / FSD Registers

B. VERIFICATION OF FINAL ACCOUNTS: Verification of Grouping Review of Ledger Balances Verification and Final Accounts, Schedules & Notes to Accounts

C. ESTABLISHMENT & PERSONNEL: Verification of Fixed Asset Register & Fixed Assets Verification of Leave Titles Verification of Vehicle Usages

D. VERIFICATION OF RUNNING & FINAL WORKS BILLS: All the Final Work Bill is to be Audited 15 to 30 per Month All the Running Work Bill is to be Audited 40 to 75 per Month

E. BUDGETARY CONTROL: Analysis of Performance with Actual Verification of Work Estimates

F. SYSTEM AUDIT: Verification of Security System in Tally Accounting Software Verification of System Process in e-Billing Verification of process in Web Based Project Management System Verification of System Security in Web Based Project Management System Verification of Tally integration with Project Management System

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 2 of 9 G. QUALITY & PROCEDURE AUDIT: To Audit Compliance of Quality System Procedures To Suggest Improvement in Quality System Procedures

H. MAN DAYS: 25% of the Man-days from the Partners 75% of the Man-days from the Associates Staff The Scope & Man-days are only indicative.

TIME SCHEDULE OF INTERNAL AUDIT for 2014-15

Date of Date of Submission of Sl Reports Commencement Reports No of Audit Draft Final 1 1st Quarter 10.07.2014 30.08.2014 15.09.2014 2 2nd Quarter 15.09.2014 15.11.2014 30.11.2014 3 3rd Quarter 15.12.2014 15.02.2015 28.02.2015 4 4th Quarter 01.03.2015 15.05.2015 20.05.2015

Internal Audit shall be completed within the above time schedule and quarterly reports submitted within the due dates without fail.

Executive Engineer (C)

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 3 of 9 KARNATAKA STATE POLICE HOUSING CORPORATION LIMITED 59, Richmond Road, Bangalore-560 025 Annexure - II Scope of work for the Internal Auditors for FY 2014-15

I. HEAD OFFICE LEVEL:

A. CASH & BANK SECTION. 1. Verification of Cash. 2. Verification of Bank balance with Bank confirmation letters. 3. Verification of Imprest Cash/Temporary Advances outstanding if any in the name of the employees. 4. Verification of Bank Reconciliation Statement. 5. Verification of Arithmetical accuracy of balances in the main cash book and petty cash book. 6. Verification of day book along with all payment vouchers and also with relevant files. 7. Verification of all receipt vouchers and also with relevant files. 8. Verification of LOC released to divisions. 9. Verification of fund indents of the divisions for release of LOC.

B. FUNDS MANAGEMENT SECTION. 1. Verification of Fixed/Term Deposit Receipt with that of Fixed/Term Deposit registers. 2. Verification of Interest Earned on Fixed/Termed Deposits and relevant TDS Certificates (Form 16A). 3. Loans transactions: Verification of loan amounts released to the Corporation from various financial institutions – Loan agreements particularly rate of interest etc including correspondence made with HUDCO. 4. Verification of repayment of loan installments including the interest and compound interest if any, to all financial institutions (EMD). 5. Verification of grants received/receivables from GOK & GOI.

C. PURCHASE SECTION. 1. Verification of purchase formalities like calling tenders/quotations, preparing comparative statements and obtaining prior approval from the competent authority/purchase committee if any. 2. Verification of purchase/stock registers. 3. Verification of fixed assets/fixed asset registers.

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 4 of 9 D. SUBMISSION ANNUAL / MONTHLY RETURNS TO VARIOUS AUTHORITIES. i. Statutory Payments / Returns. 1. Verification of monthly income tax returns and annual returns in respect of salaried employees including TDS made and also remittances – verification of TDS certificates. 2. Verification of monthly returns relating to Provident Fund along with remittances. 3. Verification of Annual provident fund returns. 4. Verification of monthly returns of sales Tax/VAT – Registration, rate of deductions including submission annual returns if any and also issue of TDS certificates, e-filing. 5. Verification of professional tax, recoveries, remittances, submission of monthly and annual returns if any. 6. Verification of cess on labour, recoveries and remittances records – Periodical returns including e-filing of returns.

ii. Acting as Advisor & consultant in respect of: 1. VAT deductions, remittances, submissions of periodical returns including Annual returns and attending assessments. 2. Remittance of FBT and filing of returns and attending of assessment. 3. Service Tax- Remittance, filing of Periodical returns and attending of assessment. 4. Income Tax matters.

E. ESTABLISHMENT SECTION. 1. Verification of pay aquittance register/Salary payment to the employees including additions and recoveries made from the salary. 2. Verification of TA claims with that of rates to be admitted as per prevailing rules and approvals from the competent authorities before making payments. 3. Verification of TA bill register. 4. Verification of leave titles of employees. 5. Verification of all salary deduction and remittances made to the concern authorities. 6. Verification of pension and leave salary contribution including remittances made and recoveries from the concerned departments.

F. CIVIL WORK. 1. Verification of the budget and budget approval for the year. 2. Verification of estimate prepared at Head Office in respect of individual works and verify whether the project is completed within the estimated amount.

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 5 of 9 3. Verification of expenditure incurred in respect of large works with reference to estimated cost and also to verify the material modification/divisions if any against the sanction estimate. 4. Verification of tender formalities – preparation, calling of tender, opening of tender scrutiny of tender, EMD obtained. 5. Verification of work in progress in respect of projects completed and handed over to the user departments (any delay in handing over) pending handing over to PWD department. 6. Verification of works expenditure debited relevant works or not. 7. Conducting audit of running bills of civil and electrical works. 8. Conducting audit of final bills of civil and electrical works. 9. Verification of mobilization of advances paid to the contractors. 10. Verification of recovery of mobilization advances including interest. 11. Verification and approval of works slips and EIRL from the competent authority. 12. Verification of utilization certificates submitted to GOK/GOI. 13. Verification of reconciliation of DCW works and other works (Work wise funds received, total expenditure excess/savings) if any. 14. KSPHC is implementing “Police Gruha-2020” Scheme in which 11,000 Residential Quarters will be constructed within 3 years at the cost of Rs.1818.00 Cr. The detailed Audit covering grants received, Loans availed, Repayment of Loan, Works Expenditure shall be taken up and separate Audit Para be furnished.

G. ACCOUNTS SECTION TALLY & OTHERS. 1. Verification of financial powers – delegation by the competent authority 2. Review of all ledgers and groups in tally. 3. Verification of classification of expenditure (Revenue or Capital). 4. Review of General Ledger in general including head of accounts. 5. Review of advances paid to staff – festival Advance, Purchase Advance, Medical Advance, Salary advance, TA & DA advance & other advances and recoveries. 6. Review of current liabilities and current assets. 7. Review of administrative and financial expenditure and allocation of ETP charges to the works. 8. Participation in the finalization of accounts. 9. Compliance of accounting standards. 10. Co-ordination with Statutory & AG auditors. 11. Conducting system security audit and quality audit of corporation. 12. Verification of vehicles log book. 13. Verification of repairs and maintenance claims of vehicles. 14. Verification of transport bills/taxi claims engaged by the corporation. 15. Formality in appointing private travels to hire vehicles. 16. Any other assignments entrusted with mutual consent.

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 6 of 9 17. Verification of advertisement claims/bills. 18. Verification of EMD & FSD with contractor wise schedule including refund made. 19. Verification of recovery of royalty and remittances made in RA bills and final bills. 20. Verification of Income Tax, VAT recoveries and remittance to concern authority from RA and final bills. 21. Verification of Collection & remittance of Service Tax & related periodicals returns. 22. Verification of Tally integration with Project Management System.

H. e-COMMERCE DIVISION. 1. Verification of agreement / MOU entered with contractors & Suppliers. 2. Verification of Delivery note & invoices raised by suppliers. 3. Verification of acknowledgements furnished by contractors on receipt of building materials from suppliers. 4. Verification of payments released to suppliers. 5. Verification of recovery of amounts from contractors in respect of supplies received from the wholesalers / suppliers. 6. Verification of stocks lying with contractors wherever necessary. 7. Verification of commission received by KSPHC relating to above transactions. 8. Any other subject / records & other issues relating to the e-commerce Division.

I.I. REVIEW OF FINAL ACCOUNTS AND TAXATION. 1 Assisting in giving in final touch to Annual Balance Sheet and Profit & Loss Account. 2 Assisting in preparation of all Financial Statements including all schedules to Balance Sheet and P & L Account. 3 Income Tax calculations, remittances, e-filing of Annual returns. 4 Assisting in preparation of Depreciation Statement required for the purpose of Annual Accounts.

Executive Engineer (C)

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 7 of 9 KARNATAKA STATE POLICE HOUSING CORPORATION LIMITED 59, Richmond Road, Bangalore-560 025 Annexure - II Continued. Scope of work for the Internal Auditors for FY 2014-15 II. DIVISIONAL LEVEL: 1. Verification of Cash balance. 2. Verification of Bank balance with Bank confirmation letters. 3. Verification of Imprest Cash/ temporary advances paid to employees if any. 4. Verification of Bank Reconciliation Statement. 5. Verification of Arithmetical accuracy of balances in the main cash book, petty cash book. 6. Verification of day book along with all payment vouchers and also with relevant files. 7. Verification of all receipt vouchers and also with relevant files. 8. Verification of LOC received from Head Office with justification for indenting such funds. 9. Verification of purchase made – purchase formalities calling quotations/tenders, preparing comparative statement and obtaining prior approval from competent authorities. Whether purchases are made in most economic manner or not. 10. Verification of all administrative payments and other payments including payments made to contractor are within the delegated powers to SE’s, EE’s & AEE’s. 11. Verification of security deposits/EMD receipts and refunds without any delay and drawl of contractor wise EMD & FSD schedules duly reconciled with HO books. 12. Verification of pension & leave salary contribution – payments released and recovery from the concern departments without delay – review of long pending amounts. 13. Verification of pay bills and payment in respect of contractual employees. 14. Verification of TA claims and TA bills register – whether payments are made after obtaining approval from competent authority. 15. All salary deductions and remittance to the concern authority. 16. Verification of Imprest and temporary advance accounts, to see their timely recoupment, to ensure advanced amount are not in excess of requirement and unspent amount are not held for long periods. 17. Verification of monthly/annual returns relating to Income Tax (Salaries), Sales Tax (VAT), Royalty & Income Tax relating to contractors etc including recoveries and remittances to the concern department and issue of TDS certificates. 18. Verification of fixed assets and fixed assets register. 19. Verification of vehicle log books, repairs and maintenance and approvals and also verification of travel claims in respect of hire vehicles etc.

Signature of the CA with Seal

0d1277ca8b0de28848a2475f41eb8c1f.docPage 8 of 9 20. Verification of classification of expenditure v.i.z., revenue and capital. 21. Verification of works expenditure whether relevant to works. 22. Verification of project wise works as per estimates. i.e., projects related by Government and Deposit contribution works. 23. Verification of works payments to the contractor. Verification of billed quantity with that of measurement books and estimates. 24. Verification of RA bills and final bills with reference to terms and condition of the related contract and RA bills are noted against the contract. 25. Verification of work in progress in respect of project completed and handed over to the police department not to PWD – any delays in handing over. 26. Verification of tender transactions – preparation, calling, scrutiny allocation and EMD obtained or not. 27. Verification of stocks (construction materials and other stocks) at divisions, sub-divisions and stock lying with contractors if any – confirmations – valuation as per accounting standards – physical verification of reports of such stock. 28. Verification of any articles/stocks lent to local bodies/contractors and other on hire basis – recovery of hire charges on lent stocks. 29. Verification and approval of works slips and EIRL from the competent authority. 30. Any other assignments entrusted with mutual consent. 31. Shall conduct system security audit and quality audit of the corporation.

III. COVERAGE OF AUDIT.

The Auditor’s shall conduct Internal Audit as per the scope of work specified and Audit reports shall cover observations on the entire scope of work (Annexure – I & II), including on System Audit as per Para ‘F’ of Annexure – I.

The above Scope for conducting Internal Audit is only an indicative.

Executive Engineer (C)

Signature of the CA with Seal Executive Engineer (C)

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