Tender for Appointment of Auditors for Pre

Auditing of Bills

Hutti Gold Mines Co Ltd

Aug 2019

THE HUTTI GOLD MINES COMPANY LIMITED, HUTTI

1. INDRODUCTION

1.1 The Hutti Gold Mines Company Limited (HGML), a Government of

Karnataka Undertaking has the unique distinction of being the only primary

producers of gold in the country. The corporate office of the Company is at

Bangalore and gold extraction plants at Hutti. HGML has been active in the

process of exploration, development and exploitation of gold deposits

occurring in Karnataka.

1.2 At present the company on an average extracts 2 metric tonnes of gold per

year. The extraction capacity of gold may be increased to 3 tonnes in the

next 2 years’ time. HGML has huge reserves of gold and may take up

further expansion in future.

1.3 Location of the Mines : Lingsugur Taluk, Raichur Dist, Karnataka State

Distance : 480 KM North of Bengaluru

300 KM Southwest of Hyderabad

80 KM West of Raichur

20 KM Northeast of Lingsugur

Railway Station : Raichur, south Central Railway – 80.km

History of Mining : a) Ancient Mining – 2000+ years old

(Pre-Ashokan era)

b) Modern Mining – Main Mine during

Nizam’s period (1902 -1918)

c) Modern Mining – Rediscovery of parallel

Lodes and Mining from 1947 onwards.

Present Mine Depth : 26th Level, 842 Metres

1.4 The Company has four major Departments which play main roles in

extraction of primary gold.

Mining Department

Exploration Department

Metallurgical Department

Engineering Department

1.5 Performance of the Company during last 3 years:-

(Rs. in lakhs)

Particulars FY 2016-17

FY 2017-18

FY 2018-19 (Provisional)

Production

a) Ore treated (MT) 569087 568692 587365

b) Net recovery grade 2.78 2.88 2.83

c) Gold produced (kgs) 1579.72 1638.16 1663.16

Income / Turnover 47882.46 43703.29 54491.02

Profitability 3077.09 4168.92 12573.26

1.6 Disclaimer

This Tender Document is not an agreement and is not an offer or

invitation by The Hutti Gold Mines Co Ltd (HGML) to any party other

than the one that qualifies to submit the Bid. The purpose of this

Tender Document is to provide information to the potential bidders to

assist them in responding to this Tender Document. Though this Tender

Document is prepared with sufficient care to provide all required

information to the potential bidders, they may need more information

than what has been provided in this document. In such cases, the

potential bidder is solely responsible to seek the information required

from HGML. HGML reserves the right to provide such additional

information at its sole discretion. In order to respond to the tender, if

required, and with the prior permission of HGML, each bidder may

conduct his own study and analysis, as may be necessary.

HGML makes no representation or warranty and shall incur no liability

under any law, statute, rules or regulations on any claim the potential

bidder may make in case of failure to understand the requirement and

respond to the Tender document. HGML may, in its absolute

discretion, but without being under any obligation to do so, update,

amend or supplement the information in this Tender Document.

Scope of work for pre-Audit of Supplier’s /Contractor’s And Service

Provider’s Bills.

1) To pre-audit all the bills of suppliers, contractors, projects,

Advance/Adjustments, EMD and SD refunds, valuing more than Rs. 25000/

2) The period of the pre-audit assignment is for 12 months from January to

December 2020

3) The bills/claims needs to be audited with respect of provisions of purchase

order/work order/agreement, tender documents, measurement books,

certification by concerned executing department, certification/comments of

independent consultants, statutory recoveries/recoveries of mobilisation advances, interest, penalty, security deposits, liquidate damages, recoveries

towards issue of materials/cost of service, delay in completion of the work,

compliance to various laws, required approvals/sanctions, supporting

documents, tax invoices currency and sufficiency of bank guarantees

admissible tax and duties, availing of input tax (ITC) benefits, statutory

deductions, GST compliance/filling of returns and arithmetical accuracy etc.,

4) The pre-audit needs to be carried out three times in month at Hutt, i.e on 10th

20th, and 30th

/31st of the concerned month. The finance department at Hutt

will provide the bills with necessary supporting documents. The audit team,

at the end of each visit, will have to prepare a list of cleared bills, showing

gross admissible amount, deductions and net payable amount, for making the

payment. The list with seal and signature shall be submitted to the General

Manager (Co-ordination).

5) The remarks/comments for the rejected bills/claims, if any , shall also be addressed to the I/c.Executive Director/General Manager, Hutt and shall be

handed over before completion of each visit.

INSTRUCTIONS TO BIDDERS

The Bidder is required to submit Covering Letter in Form No. 1.

Following are the guidelines for bidders to submit Technical and

Financial Bids for this assignment.

Bid Formats:

The bid shall consist of two parts i.e. Technical bid & financial bid.

The Technical bid shall contain all the documents and

declaration/information with respect to compliance with pre-qualification

criteria as per Form No. 2.

Technical Bid:

The technical bid document shall include specific responses addressing the

requirements described below:

1. Understanding of Hutti Gold Mine’s needs.

2. The bidder’s organization profile

3. Relevant Experience of the firm.

4. The curriculum vitae of key team members to be associated with this study.

Note 1: Documentary evidences are to be submitted towards all the

experiences claimed and clearly highlighting the relevant part in the document.

Financial Bid: The Financial quote shall not be part of technical bid. The total amount /fees

including TA/DA, out of pocket expenses and all taxes and duties shall be

entered in the e-portal, financial bid approval format.

Others:

The company will arrange free of cost for the boarding and lodging at its mine

sites.

MANDATORY ELIGIBILITY CRITERIAS

The following are the essential qualifying criterias’ for the firms to qualify

in Technical Bid.

1) The firm should have been registered with the Institute of Chartered

Accountants of India or the Institute of Cost Accountants of India (ICAI/ICMAI)

2) The firm should have at least 3 Chartered / Cost Accountants as its

partners

3) One of the partners should be a fellow member of the Institute

of Chartered Accountants of India or the Institute of Cost

Accountants of India.

4) The firm should have carried out Internal Audit work in any state

PSUs in Karnataka at least for one year during the previous 5 years.

5) The firm shall have minimum personnel strength of 5 assistants /

article assistants

Note: Documentary evidences are to be submitted towards compliance with Mandatory

qualification criterias along with the technical bid.

EVALUATION CRITERIAS

Stage 1: Technical valuation

Stage 1 evaluation will be taken up for those bidders who have submitted bid

throug h e -por ta l . The bid will be scrutinized with respect to the mandatory

eligibility requirements. Only those bids who meet all the eligibility requirements

shall be considered for further evaluation. The details of these parameters are given

in Form No-2 (Technical Bid). Financial bid shall be opened for only those bidders,

who qualify technically as per the Technical Bid.

Stage 2: Financial Evaluation

Bidders who qualify in stage 1, their financial bids shall be opened. The lowest bid

amount as per e-portal, among the technically qualified bidders shall be taken for further

consideration,

The amount to be entered in the e-portal financial bid shall be inclusive of all charges,

fees, expenses, TA/ DA & out of pocket expenses and applicable taxes. The amount

entered in the e-portal shall be final and binding.

The assignment/audit work shall be awarded after evaluation of the financial Bid.

OTHER TERMS AND CONDITIONS

HGML’s right to accept/ reject the bids Notwithstanding anything stated in the Tender Document or in any related

correspondence, HGML reserves the right to accept or reject any Bid. It also reserves

the right to cancel/annul the bidding process and reject all Bids at any time before the

award of the Contract, without assigning any reason and thereby without incurring any

liability to the affected bidder or bidders or any obligation to inform the affected bidder

or bidders of the grounds for HGML’s action/decision.

FAILURE TO ABIDE BY THE CONTRACT The bidder is expected to strictly adhere to the terms specified in this Tender

document as well as the LOI. Any violation of any of the terms could lead to

immediate termination of the Contract at the risk and cost of such bidder without

prejudice to the rights of HGML with such penalties as specified in the Tender

Document and the LOI.

TERMS OF PAYMENT HGML will release payments for execution of the Assignment based on

milestones of work completion as indicated in APPENDIX - 1.

CONFLICT OF INTEREST

Neither the selected firm nor any of the firm’s personnel shall engage in any

personal business or professional activity which conflicts or could conflict with any of

their obligations in relation to this project. The key members mentioned in the Tender

document shall not be changed in any circumstances w i thou t the p r io r approva l

o f the H GML. F ailure to comply, the HGML will have the right to cancel the

Contract at the risk and cost of such bidder without prejudice to the rights of HGML.

PRICE VALIDITY

The price quoted by the bidder should be valid for 90 days from the tender

date.

Form 1: Cover Letter

To Date:

The Deputy General Manager (Materials),

Hutti Gold Mines Co Ltd., Hutti-584115

Sub: Tender for Assignment of Pre Audit of bills for the period from January 2020

to December 2020

Dear Sir,

1. We, the undersigned, after having examined the terms and conditions mentioned

In the tender document, submit our technical & financial proposals for the above

Tender.

2. We have read the provisions contained in the tender document and confirm that

These are acceptable to us.

3. We further declare that additional conditions, variations, deviations, if any,

Found in our proposal shall not be given effect to this tender.

4 . We hereby declare that all the information and statements made in this

Proposal is true and accepts that any misinterpretation contained in it may

lead to our disqualification and without prejudice to other remedies available to

HGML

Authorized Signatory (in full and initials):

Name and title of signatory: Duly authorized to sign this Proposal for and on behalf of [Name of Consultants] Name of Firm:

Address:

TECHNICAL BID

Form - 2

Sl.

No.

Mandatory Criterias Yes/No

(To be

filled by the

Firm)

Required

Documentary

Evidence

1 The firm should have been registered with the Institute of Chartered Accountants of India or the Institute of Cost Accountants of India.

Certified copy of the Registration / certificate

of incorporation

2 The firm should have at least 3 Chartered / Cost Accountants as its partners

Certificate of Registration.

3 One of the partners should be a fellow member of the Institute of Chartered Accountants of India or the Institute of Cost Accountants of India.

Certificate issued in this regard

4 The firm should have carried out Internal Audit work in any state PSUs in Karnataka at least for one year during the previous 5 years.

Names of the companies with copies of work

orders.

5 The firm shall have minimum personnel strength of 5 assistants / article assistants

Curriculum Vitae in brief.

(A) - The technical bid document should include specific responses addressing the

requirements described below:-

1. Understanding of Hutti Gold Mine’s needs.

2. The bidder’s organization profile

3. Relevant Experience of the firm.

4. The curriculum vitae of key team members to be associated with this assignment.

Note 1: Documentary evidences are to be submitted towards all the experiences

claimed and clearly highlighting the relevant part in the document.

(B) - Credentials related to the works / assignments completed/continuing for last

3 (Three)years.

Sl.

No.

Name of the

Client/

Organization with

Address

Contacting

person of

Client

with

telephone

Number

Scope of

Services

Provided

by Bidder

Year of

services

provided

Value of

Assignment

(INR)

Period of

Completion

of

Assignment

(C)- Qualifications and Experience of Key Personnel to be associated with the Assignment:

Particulars Professional No.1 Professional No.2

Name and Designation

Experience / Work History

Educational / Professional Qualification(s)

Expected Nature of Involvement (Specific

roles / activities Full time/ part time

Appendix - I

Terms of Payments

The following schedule will be adopted for the payment of fees:

Milestones Schedule of

Payment

1) Submission of Pre- Audit report as and when visit to

Hutti and Audit taken place

On submission of

monthly Audit report & Bill

THE HUTTI GOLD MINES COMPANY LIMITED

General Terms and conditions of the tender and instructions to Tenderers.

1. The Hutti Gold Mines Co. Ltd., a Company registered under the Companies Act, 1956, and

having its Registered Office, III floor, KHB Complex, National Games Village,

Koramangala, Bangalore – 560 047 Karnataka, India., here in called “Company”, do not bind

themselves to accept the lowest or any tender and reserve to themselves the right to select any tender or only individual item in a tender as may be considered expedient to accept.

2. Rate of each article tendered shall be quoted separately or as specified in NIT.

a. The tenderer should quote only in the prescribed format against the item only or as

specified in the space for tendering the rates.

b. Tenderer should specify the ‘Make’ of the item quoted and should quote only for one

Make for each item. If any tenderer quotes for different makes, the lowest of the rate

quoted will be considered irrespective of the make.

c. The rate should be quoted only for the unit specified in the tender and if quoted for

any other unit will be rejected.

d. Tenderers must participate in the tender through e-procurement portal only and pay

the requisite tender fee for the amount (Non-Refundable) as specified in the tender

notification.

e. The duly filled tender documents should be uploaded along with EMD details on or

before the last date & time stipulated for the receipt of bids.

f. The discloser of price or enclose of Price Bid sheet in Technical Bid, leads to

rejection of the entire bid.

g. The Tender fee is not refundable under any circumstance.

3. EARNEST MONEY DEPOSIT (EMD):

The EMD for the tender has to be remitted as per e-procurement norms.

4. PRICE BID:

a) The Rate should be quoted for the specified size/Packing/etc. in the schedule which should

include all charges such as packing & forwarding etc.

b) The price quoted shall be on F.O.R. Hutti basis only.

c) The quote shall be in INR (Indian Rupee) only.

d) The price break up shall include all the taxes, duties, P&F, Freight etc. The total of the same

has to be entered in e-portal as their price bid.

5. VALIDITY

a. The rates quoted shall hold good for the time period as specified in the NIT from the date

of purchase order or agreement.

b. The rates offered shall hold good for the time period as specified in the NIT from the last

date fixed for receiving the tender.

6. a). Free samples with affixed labels of the item (s) quoted with item code mentioned in

Tender notification shall be submitted to the Tender Inviting Authority (TIA), The

Hutti Gold Mines Co. Ltd., Hutti – 584 115 on or before the last date fixed for receipt

of the tender in case the samples are asked in the tender.

b). Any tender which is not accompanied by the samples in compliance with the above

conditions will be rejected unless it is specified otherwise, in view of the large size

and heavy weight & if it is necessary to submit the samples, then the tenderer should

demonstrate the unit if demanded.

7. The bidder shall be required to execute an agreement on a government stamp paper on the value required and shall provide Security Deposit (SD) for a sum at 5% of the value of order

in the form of DD issued by any Nationalized Bank drawn on State Bank of India payable at

Hutti in favour of “The Hutti Gold Mines Co, Ltd” within 14 days from the date of intimation

of acceptance of tender. In case if the SD is not provided with in stipulated period, then the

same will be recovered from the first supply bill and if the amount of the first supply bill is

not sufficient, the balance will be recovered in the second bill and so on till entire recovery of

the SD amount.

If any tenderer fails to execute the agreement within the stipulated period, the EMD of such

tenderer will be forfeited by the company.

8. The Contractor/supplier is required to supply the quantities as per the purchase order issued

from time to time. Quantities supplied in excess will not be accepted.

9. All containers must be pilfer proof and should accompany with statutory regulations to ensure that protection to the quality and quantity of the product packed.

PENALTY CLAUSES

10. a). If supplies are not delivered within the stipulated period as per the delivery schedule

mentioned in the purchase order, the Company reserves the right to cancel the order

or make alternate arrangement to procure the materials at the cost of the supplier. The

additional financial implication out of alternate arrangements if any will be collected

from the supplier.

b). Failure to supply or delay in supplying a portion or entire quantity as per clause 8 and 10(a). will entail the enforcement of one or more or the following at the discretion of

the Company.

i. Cancellation of the indent or order in part or in whole.

ii. Levy of penalty in case delayed supplies.

c) If supplies are not completed within the date mentioned as Delivery date, a penalty of

0.5% will be levied per week from the date fixed as delivery date (for the balance

quantity only) subject to maximum penalty of 5%, in addition to this applicable GST

will be collected on penalty.

d). If any material supplied is declared as of “Not Standard Quality” or “Supplies are not

as per requirement and schedule”, such Tenderer will be penalized by the Company,

including black-listing in addition.

11. No representation for enhancement of rate once accepted will be considered during the

currency 0of the contract for reasons other than statutory requirements.

12. The requirement of the other units of the Company that may be ordered separately must also

be supplied under the same conditions and the same rates in F.O.R. destination basis.

13. In case of materials rejected as not being in accordance with the approved samples or has

been received in damaged conditions, the tenderer should take back and replace by correct materials without additional cost to the Company, within reasonable period.

14. Supplies not properly packed will be a rejected.

15. Any tenderer withdrawing the tender after submission or fails to execute the agreement as

required, after acceptance of the tender or fails to furnish the Security Deposit as required

under clause (7), the EMD paid by him shall be forfeited by the Company and his firm will

not be considered for future rate contracts/tenders besides black listing the firm.

16. All applications for the refund of EMD furnished with the tender should be made only to the,

“Tender Inviting Authority (TIA)”, The Hutti Gold Mines Company Limited., with Purchase

order no, material short description and the tender number.

17. Rates should include all taxes and duties etc. specifying whether the Karnataka VAT OR the

Central Sales Tax is applicable and the percentage.

18. The Security Deposit / EMD made previously against any tender will not be adjusted towards

other tender.

19. The Tenders that are not accompanied by the required supporting documents required as per

NIT will be rejected.

20. All the supplies should be accompanied along with delivery challan in duplicate, indicating

quantity, order NO & Date and Packing details. The invoice shall be addressed to the Finance

Department of the Company and materials to be supplied to Stores Department along with

copies of invoice, delivery channel and cenvat copy.

21. Payment of the bills will be made by cheque / DD and RTGS only as per terms specified in

purchase order, only after the satisfactory receipt report from the concerned department. No advance payment will be made.

22. All tenderers shall confirm to the relevant standards, BIS, etc. even though it is not mentioned

in the tender document against a particular item.

23. The supplies should accompany analytical report to confirm to quality, wherever applicable.

24. In case of reduction in taxes or duties under any statutory regulations the benefits shall be

passed on to the Company by way of reduced rate and this shall be the basis for contract price for the remaining period of the contract.

25. a) Valid authorized dealership certificate has to be submitted by agents or distributors

and should produce copy of letter or authority from the manufacturers.

b) A general warranty should be produced from the manufacturer for the accepted items

manufactured by them and also the manufacturer should produce the valid permission

to manufacture the items issued by respective competent authority.

26. Tenderers shall specify whether the goods offered are from the indigenous sources, from imported stocks in India or from foreign sources to be which will be imported under license.

Company reserves the right to reject the offers for import of goods if it is in contravention of

import Trade Control policy in force at the time of award of the contract.

27. No application for assistance to get the quota of raw materials will be entertained. Tenderer

should make their own arrangements to secure the same and to supply the goods in time.

28. Tenderers on Rate contract with Govt. of Karnataka stores and purchase department or D.G.S

& D should produce copy of documentary evidence against all applicable items of the tender.

29. If the firms or the industry is registered with Industries & Commerce, Bangalore as SSI, a

copy of the certificate duly attested by the Gazette Officer should be submitted along with

quotation for consideration of price preference if any.

30. No import License will be provided by the Company.

31 a. In case of requirement of any “Import Permit / NOC / Clearances” according to the Foreign

Trade policy 2016-2020 or as per any Acts of state/central Govt., from time to time, the

supplier himself need to take such permits/ NOC /Clearances, before importing/ supplying

the material. The import Permit obtained by HGML shall not be used by the successful tenderer for the purpose of import or supply of the material. In case, the successful tenderer

fails to obtain the import permit before the stipulated date of delivery, the Company reserves

the right to cancel the tender and to re-tender at his risk and cost.

32. The tenderer must specify the patent name, if any, and name of the manufacturer and the

product offered by the Company.

33. No correspondence will be entertained from the Tenderer during the last week from the last

date fixed for receiving the tenders.

34. For any issues in connection with the tender, the decision of CEO / Managing Director or his

authorized representative of the Company is final & binding on both the parties. Any

differences and disputes shall be settled through the arbitration and conciliation Act 1996 and

any amendments thereof. The Court of jurisdiction shall be Karnataka High Court.

*Note: - As the Govt. of India has implemented “Goods and Service Tax (GST)” from 1

st July

2017, Hence Bidders are required to quote accordingly in lieu of Taxes, Duties etc.

Tender Inviting Authority (TIA)

The Hutti Gold Mines Co. Ltd.

Hutti – 584 115, Raichur – Dist. Karnataka

THE HUTTI GOLD MINES COMPANY LIMITED TECHNICAL BID – B (Civil / Services)

Sl.

No. Particulars To be filled in by the Tenderer

1.

Name Address of the Company / Firm

2.

Address of the Registered Office.

3.

Address of the Branch / Regional Office.

3.a

Contact Details: Name/Mobile No / Phone No / Mail ID

Name :

……………………………………………………

Mobile No. :

……………………………………………………

Phone :

……………………………………………………

Email Id :

……………………………………………………

4.

GST Registration No. :

5.

PAN No. :

6.

EPF Registration No. :

7.

Class of Contractor :

(CLASS I /CLASS II / CLASS III)

8.

EMD Amount Paid (Rs.) :

9.

Validity of Tender :

Offer should be kept open for days mentioned in the

tender from the last date fixed for receiving the tender

for the purpose of tender acceptance.

10.

Additional details if any to be specified.

11. Completion Period.

(Shall not be more than the period mentioned in

NIT/Two Months)

12. Payment will be made after completion of work/services

duly certified by HGML officials.

Tenderer Signature:-………………………………………….

Page 1 of 1

Technical D

To,

Tender Inviting Authority

HGML

Hutti.

Dear Sir,

Sub: - Tender for ………………………………………………………………................

Ref: - Tender Indent No: …………………………………………………………………….

*****

We here by submit undertaking that, for the above referred tender, we are

accepting your NIT terms in regards with,

1. Delivery/Completion Period.

2. Validity.

3. Payment terms.

4. GST percent.

5. HSN code of items.

We does not have any counter conditions for the same.

Date:……………………

Place:………………….

Tenderer Name:………………………………………..

Signature:…………………………………………………