STATE BANK OF INDIA AUDIT DEPARTMENT, LOCAL HEAD OFFICE Bank Street, Koti, Hyderabad-500095 Email: [email protected] Empanelment of Concurrent Auditors for Branches situated in the States of Telangana & Andhra Pradesh Applications are invited from firms of Chartered Accountants (individuals or firms) having offices in Telangana & Andhra Pradesh States on or before 15 th Sep 2014 for carrying out the task of Concurrent Audit of the Bank on full time contractual basis (renewable every year at Bank’s discretion) at its selected Branches / Offices /Central Processing Centres located in these two States. Please refer Bank’s website www.sbi.co.in > Procurement News > LHO Hyderabad for details of application, terms & conditions, scope of audit, audit fee payable, etc. Deputy General Manager & Circle Financial Officer

State Bank of India Local Head Office, Bank Street, Koti, Hyderabad-500095 Empanelment of Concurrent Auditors for Branches situated in the States of Telangana & Andhra Pradesh Applications are invited from Partnership firms of Chartered Accountants (situated in Telangana & Andhra Pradesh) for carrying out Concurrent Audit on full time, contractual basis (renewable every year, at Bank’s discretion) at its selected Branches / Offices /Processing Centres situated in the State of Telangana and Andhra Pradesh, as under: S.No. Branch

DIST.

State

1

TFCPC HYD

HYDERABAD

TELANGANA

2

BALANAGAR SME

HYDERABAD

TELANGANA

3

BANJARA HILLS

HYDERABAD

TELANGANA

4

CHANDRAYANGUTTA

HYDERABAD

TELANGANA

5

ECIL

HYDERABAD

TELANGANA

6

HU CAMPUS

HYDERABAD

TELANGANA

7

HYDERABAD

HYDERABAD

TELANGANA

8

KHAIRTABAD

HYDERABAD

TELANGANA

9

KOHINOOR BANJARA PBC

HYDERABAD

TELANGANA

10

NACHARAM I A

HYDERABAD

TELANGANA

11

NRI HYDERABAD

HYDERABAD

TELANGANA

12

PBB JUBLEE HILLS HYD

HYDERABAD

TELANGANA

13

PBB REDD HILLS

HYDERABAD

TELANGANA

14

RACPC -1 HYDERABAD

HYDERABAD

TELANGANA

15

RACPC-11 HYD

HYDERABAD

TELANGANA

16

SECUNDERABAD

HYDERABAD

TELANGANA

17

SME BR SAIFABAD

HYDERABAD

TELANGANA

18

SME BRANCH-HYD

HYDERABAD

TELANGANA

19

SMECC-1 HYD

HYDERABAD

TELANGANA

20

SMECC-IIHYD

HYDERABAD

TELANGANA

21

YELLAREDDYGUDA

HYDERABAD

TELANGANA

22

RACPC -3 HYDERABAD

HYDERABAD

TELANGANA

23

LCPC VIJAYAWADA

VIJAYAWADA

ANDHRAPRADESH

24

RACPC VIJAYAWADA

VIJAYAWADA

ANDHRAPRADESH

25

RASMECC & SARC, KAKINADA

EAST GODAVARI

ANDHRAPRADESH

26

RASMECC &SARC, RAJAHMANDRY

EAST GODAVARI

ANDHRAPRADESH

27

SME BR KAKINADA

EAST GODAVARI

ANDHRAPRADESH

28

SMECC VIJAYAWADA

VIJAYAWADA

ANDHRAPRADESH

29

OB VISHAKAPATNAM

VISAKHAPATNAM

ANDHRAPRADESH

30

RACPC VSP

VISAKHAPATNAM

ANDHRAPRADESH

31

SMECC VSP

VISAKHAPATNAM

ANDHRAPRADESH

32

VISHAKHAPATNAM

VISAKHAPATNAM

ANDHRAPRADESH

33

GUNTUR

GUNTUR

ANDHRAPRADESH

34

NELLORE

NELLORE

ANDHRAPRADESH

35

RASMECC & SARC, GUNTUR GUNTUR

ANDHRAPRADESH

36

RASMECC NELLORE

NELLORE

ANDHRAPRADESH

37

PUTTAPARTHI

ANANTHAPUR

ANDHRAPRADESH

38

RASMECC & SARC, TIRUPATI CHITOOR

ANDHRAPRADESH

39

SETTIPALLE

CHITOOR

ANDHRAPRADESH

40

TIRUPATI

CHITOOR

ANDHRAPRADESH

Last date for receipt of Application : Wednesday, the 15th Sep 2014. Those who are interested may submit [i] Application / Bio-data (AS PER PRO FORMA ANNEXED) together with passport size photographs of all partners ; [ii] Photostat copies of Degree certificate, Membership Certificate of Institute of Chartered Accountants of India (ICAI), any other certification obtained, etc., to The Asst. General Manager (Audit), State Bank of India, Audit Department, Local Head Office, Bank Street, Koti, Hyderabad-500095. Terms and Conditions : [a] Expertise in audit of Banking related areas and experience as concurrent auditors of other Banks in the past is preferred; [b] Preference will be given to locally based Chartered Accountants or proximity to the location of the Branches / offices; [c] One employee/Articled Clerk trained by ICAI on Concurrent Audit and/or a retired Bank Officer is to be stationed on a full day basis at the branch on all working days; [d] A partner of the firm must visit the branch at least for two full days in a week; [e] The Concurrent Auditor should submit perioidical reports at stipulated intervals on irregularities observed and rectified, in addition to reporting the observations in the Web Based Concurrent Audit System (WBCAS). Suitable training will be imparted on selection, which will have to be attended by the Concurrent Auditor at his own cost; [f] The Bank will have right to reject applications and Bank’s decision in empanelment will be final. If the services of Concurrent Auditors are not satisfactory, Bank will have the right to terminate the contract any time. [g] The selected Chartered Accountant firm has to enter into a Standard Service Level Agreement specified by the Bank at their own cost. Selection Process: applications received within the cut-off date and time will be scrutinized under Basic Eligibility Criteria as detailed above, by the Selection Committee. experience, reputation, availability of sufficient trained personnel (ICAI Trained), location of the firm in relation to the auditee units . would be liable for rejection.

Those applicant who satisfy the requirements and specifications as determined by the Bank as per the terms and conditions of this document shall be short-listed after selection. asis of their

responses without assigning any reasons, whatsoever. Remuneration payable: BRANCHES Business Level of Branches Deposit Rs 300 Crs & above and Advance < Rs 400 Crs

Fee Structure (Rs. per month)

RBI Grade of Auditor

25,000

Grade 3

Advances Rs 400 Crs & above

35,000

Grade 2 / 3

Additionally - CAs may be given an additional Rs 500/- pm per Account with fund based and non fund based exposure of Rs 10 Crs and above with additional accountability for detailed scrutiny of these a/cs CENTRAL PROCESSING CENTRES: LCPC / TFCPC

25,000

Grade 3

RACPC / SMECC / RASMECCC

40,000

Grade 2 / 3

Bills will be paid on a monthly basis and the above fee is all inclusive and no other fee / allowances (e.g. Travelling Allowances, Lodging Charges, Local Conveyance, etc.) whatsoever will be paid.

CONCURRENT AUDIT FUNCTIONS Extracts of RBI Circular No.DOS.No.BC.16.08.91.021.96 dt.Aug.14 ,1996

(A) Scope of Concurrent Audit Concurrent audit is an examination which is contemporaneous with the occurrence of transactions or is carried out as near thereto as possible. It attempts to shorten the interval between a transaction and its examination by an independent person not involved in its documentation. There is an emphasis in favour of substantive checking in key areas rather than test checking. This audit is essentially a management process integral to the establishment of sound internal accounting functions and effective controls and setting the tone for a vigilance internal audit to preclude the incidence of serious errors and fraudulent manipulations. A concurrent auditor may not sit in judgment of the decisions taken by a branch Manager or an authorised official. This is beyond the scope of concurrent audit. However, the audit will necessarily have to see whether the transactions or decisions are within the policy parameters laid down by the Bank, they do not violate the instructions or policy prescriptions of the RBI, and that they are within the delegated authority. In very large branches, which have different divisions dealing with specific activities, concurrent audit is a means to the in-charge of the branch to ensure on an on-going basis that the different divisions functions within laid-down parameters and procedures. (B) Types of activities to be covered (1) The main role of concurrent audit is to supplement the efforts of the bank in carrying out simultaneous internal check of the transactions and other verifications and compliance with the procedures laid down. (2) The scope of concurrent audit should be wide enough to cover certain fraud prone areas like handling of cash, deposits, safe custody of securities, investments, overdue bills, exercise of discretionary powers, sundry and suspense accounts, interbranch reconciliation, clearing differences, foreign exchange business including Nostro accounts, off-balance sheet items like letters of credit and guarantee, treasury functions and credit-card business. (3) The detailed scope of the concurrent audit should be clearly and uniformly determined for the Bank as a whole by the Bank’s Inspection and Audit Department in consultation with the Banks Audit Committee of the Board of Directors (ACB). (4) In determining the scope, importance should be given to checking high-risk transactions having large financial implications as opposed to transactions involving small amounts. (5) While the detailed scope of the concurrent audit may be determined and approved by the ACB, some of the suggested items of coverage are given below: Suggested Items of Coverage

(A) Cash (i) Daily cash transactions with particular reference to any abnormal receipts and payments. (ii) Proper accounting of Inward and outward cash remittances. (iii) Proper accounting of currency chest transactions, its prompt reporting to the RBI. (iv) Expenses Incurred by cash payment Involving sizeable amount. (B) Investments (i) Ensure that in respect of purchase and sale of securities the branch has acted within its delegated power having regard to its Head Office instructions. (ii) Ensure that the securities held in the books of the branch are physically held by it. (iii) Ensure that the branch is complying with the RBI/Head Office guidelines regarding BRs, SGL forms, delivery of scrips, documentation and accounting. (iv) Ensure that the sale or purchase transactions are done at rates beneficial to the bank. (C) Deposits (i) Check the transactions about deposits received and repaid. (ii) Percentage check of interest paid on deposits may be made, including calculation of interest on large deposits. (iii) Check new accounts opened particularly current accounts. Operations in new current/SB accounts may be verified in the initial periods to see whether there are any unusual operations. (D) Advances (i) Ensure that loans and advances have been sanctioned properly (i.e. after due scrutiny and at the appropriate level.). (ii) Verify whether the sanctions are in accordance with delegated authorities and also sanctions are duly controlled. (iii) Ensure that securities have been received/cre4ated, prescribed documents executed and properly charged /registered. (iv) Ensure that post disbursement supervision and follow-up is proper, such as receipt of stock statements, installments, renewal of limits, conduct of inspection, etc. (v) Verify whether there is any misutilisation/diversion of the loan funds. (vi) Check whether the letters of credit issued by the branch are within the delegated power and ensure that they are for genuine trade transactions. (vii) Check the bank guarantees issued, whether they have been properly worded and recorded in the register of the bank. Whether they have been promptly renewed on the due dates.

(viii) Ensure proper follow-up of overdue bills of exchange. (ix) Verify whether the classification of advances has been done as per RBI guidelines. (x) Verify whether the submission of claims to DICGC and ECGC is in time. (xi) Verify that instances of exceeding delegated powers have been promptly reported to controlling/Head Office by the branch and have been got confirmed or ratified at the required level. (xii) Verify the frequency and genuineness of such exercise of authority beyond the delegated powers by the concerned officials. (xiii) Ensure that expired LCs and BGs are reversed in the system on due dates. (E) Foreign Exchange transaction (i) Check foreign bills negotiated under letters of credit. (ii) Check FCNR and other non-resident accounts whether the debits and credits are permissible under rules. (iii) Check whether inward/outward remittance have been properly accounted for. (iv) Examine extension and cancellation of forward contracts for purchase and sale of foreign currency. Ensure that they are duly authorised and necessary charges have been recovered. (v) Ensure that balances in Nostro accounts in different foreign currencies are within the limit as prescribed by the bank. (vi) Ensure that the overbought/oversold position maintained in different currencies is reasonable taking into account the foreign exchange operations. (vii) Ensure adherence to the guidelines issued by RBI/HO of the bank about dealing room operations. (viii) Ensure verifications / reconciliation of Nostro and Vostro account transactions / balances. (F) Housekeeping (i) Ensure that the maintenance and balancing of accounts, ledgers and registers including clean cash is proper. (ii) Early reconciliation of entries outstanding in the inter-branch and inter bank accounts, Suspense Account, Sundry Deposits Account, DDRR Account, Drafts account, etc. Ensure early adjustment of large value entries. (iii) Carry out a percentage check of calculations of interest, discount, commission and exchange. (iv) Check whether debits in income account have been permitted by the competent authorities. (v) Check the transactions of staff accounts. (vi) In case of difference in clearing there is a tendency to book it in an intermediary suspense account instead of locating the difference. Examine the day book to verify as to how the differences in clearing have been adjusted. Such instances should be

reported to Head Office in case the difference persists. (vii) Detection & prevention of revenue leakages through close examination of income and expenditure persists. (viii) Check cheques returned/bills returned register and look into reasons for return of 35 those instruments. (ix) Checking of inward and outward remittances (DDs, MTs & TTs). (G) Other items (i) In case the branch has been entrusted with government business, ensure that the transactions are done in accordance with the instructions issued by Government, RBI & HO. (ii) Ensure that the branch gives proper compliance to the internal inspection/audit reports. (iii) Ensure that customer’s complaints are dealt with promptly. (iv) Verification of statements, HO returns, statutory returns. The aforesaid list is illustrative and not exhaustive. [Refer DBS.ARS.No.BC.18/08.91.021/2002-2003 dated.24.06.03; DBS.CO.PP.BC.11/11.01.005/2002-03 dated. 30-01-03; DBS.BC.33/08.91.021/1999.2000 dated. 06.04.00] (iv) Any other guidelines/instructions issued from time to time from Govt. of India, RBI, SBI and/or any other Statutory Authorities. ------xxxxx------

Annexure-1

(on Firm’s Letterhead) APPLICATION/BIODATA FOR EMPANELMENT AS CONCURRENT AUDITORS

To The Asst. General Manager (Audit) State Bank of India Audit Department Local Head Office, 3rd Floor Bank Street, Koti HYDERABAD-500095

Dear Sir, With reference to your advertisement dt. , we hereby apply for empanelment as Concurrent Auditors and furnish hereunder the requisite bio-data / information / documents. 1 2 3 4 5 6 7 8 9 10 11

12

13

14 15

Name of the CA firm / company Constitution Date Established Registered / Communication Address of the firm / company PAN no./TIN no. Regn No. with ICAI Unique Code No. given by RBI Firm’s RBI Category, viz., 1, 2, 3 or 4 Nature of present activity of the firm / company & since when Revenue & Net Profit during the last 3 years Names, Educational / Professional Qualification, Income, Phone no. & Adresses of Prop. / Partners / Directors Whether Statutory Auditor for SBI

Details of present set-up / Infrastructure available to deal with concurrent audit work Particulars of empanelment with other banks / financial institutions Past experience in concurrent audit

16

(with names of Banks) (pl attach proof, if any) Furnish details if the firm has been depanelled by any bank / organisation in the past.

I/We confirm that the information furnished above is true and correct and we have not been de-paneled / Black listed by any organization in the past and we fulfill all the conditions of eligibility for empanelment with SBI as a Concurrent Auditor. I/We have read the terms and conditions stipulated for empanelment as Concurrent Auditors of the Bank and !/We also understand that the Bank has reserved its right to accept or reject the application without assigning any reasons. If selected for empanelment as Concurrent Auditor of the Bank and the offer is accepted. I/We will execute Service Level Agreement in the format given by the Bank. For & on Behalf of Firm:

(Signatures) Name & Designation

(Signatures) Name & Designation

(Signatures) Name & Designation

Encl.: 1. 2. 3. 4. 5. Note: Please attach self-attested photographs and xerox copies of proofs relating to: i. ii. iii. iv. v. vi. vii. viii.

Photographs of the prop. / partners / directors. Identity & address proofs of the prop / partners / directors and the firm. Partnership deed / memo & articles of association of company. Qualifications & experience of the prop . / partners /directors PAN / TIN Card I.T. Returns (last 3 years) Empanelment with other banks / institutions. Registration /affiliation with the Institute of CA/IT/Wealth Tax Authorities (CBDT), RBI, any other organisation as CA/Auditor/Stock Auditor/NBFC/ Auctioneer / Mgt. Consultants.

ANNEXURE-2

DECLARATION OF FIDELITY AND SECRECY

We, ____________________________________________________ do hereby declare, confirm and affirm that we will faithfully, truly and to the best of our skill and ability, execute and perform the duties required of us as Concurrent Auditors of the State Bank of India and which properly relate to the Office position in the said State Bank of India by us. We further declare, confirm and affirm that we will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the State Bank of India or to the affairs of any person having any dealing with the State Bank of India not will we allow any such person to inspect or have access to any books or documents belonging to or in the possession of the Bank and relating to the business of the State Bank of India or to the business of any person having any dealing with the State Bank of India. We lastly declare, confirm and affirm that we are not disqualified for being appointed as auditors of the State Bank of India under provisions of section 226 or any other applicable provisions of the Companies Act, 1956.

CHARTERED ACCOUNTANT

PLACE: DATE: