1-KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

(GOVERNMENT OF KARNATAKA UNDERTAKING)#16I, Millers Tank bed area,

Bangalore-560052. Ph:080 22096603

No:KFCSC/IAW/A.I.A/2015-16/2016-17 Date:09-03-2016 SUBJECT:TENDER NOTIFICATION FOR APPOINMENT OF INTERNAL AUDITORS. The Karnataka Food and Civil Supplies Corporation Limited (KFCSC) of Bangalore , invites tenders through e-Procurement portal from practicing chartered accountants & CA firms(as per KTPP Act 1999) for district wise appointment of Internal auditors to take up monthly Internal Audit of the District offices and Head office of Karnataka Food and Civil Supplies Corporation Limited for the year 2016-17.The applications are invited for the following 28 districts and one head officeList of Districts offices and Head Office.

Sl.No Districts office 15 Mangalore & Udupi 01 Bagalkote 16 Mandya02 Belgaum 17 Hassan03 Bellary 18 Chamarajnagar04 Bijapur 19 Chikmagalore05 Bidar 20 Bangalore (North)06 Gulbarga 21 Bangalore (South)07 Karwar 22 Tumkur08 Haveri 23 Chitradurga09 Gadag 24 Shimoga10 Dharwad 25 Kolar11 Yadgiri 26 Ramanagar12 Koppal 27 Chikballapura.13 Raichur 28 Davanagere14 Mysore & Kodagu 29 Head Office

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NOTE:-Please treat Mysore and Kodagu (Madikeri) as single District & so also Mangalore and Udupi.

Tender Reference Number KFCSC/IAO/2016-17EMD for each districts Head Office Rs. 20,000.00Date of publishing 11-3-2016Last date for submission of Bids 24-3-2016 5.00 PM

Date/Time of opening of Technical Bid. 28-03-2016, 11.00AMDate/Time of opening of Financial Bid 30-03-2016, 11.00AMAddress for communication Karnataka Food and Civil Supplies

Corporation Ltd, No.16I, Millars Tank Bed Area, Vasanthanagar, Bangalore-560052Telephone No.22096603/22096615Fax:080-22096555-22096614-22096556WWW.kfcsc.comE-mail:iao@kfcsc.com

The Detailed Tender documents can be obtained/downloaded from e-procurement portal https://eproc.karnataka.gov.in. The Managing Director reserves the right to accept or reject any or all bids without assigning any reason whatsoever.

General Manager

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED(GOVERNMENT OF KARNATAKA UNDERTAKING)

#16I, Millers Tank bed area,Bangalore-560052. Ph:080 22096603

No:KFCSC/IAO/2016-17 Date:9-03-2016

SUBJECT:TENDER NOTIFICATION FOR APPOINMENT OF INTERNAL AUDITORS.

SECTION-1

INVITATION FOR BIDS1. The Managing Director, KFCSC, Bangalore invites tenders from eligible Chartered

Accountants/CA firms for District wise appointment of internal auditor for carrying out the monthly Internal Audit of District offices & Head Office of KFCSC Ltd,. for the year 2016-17. The Bidders are required to submit details of their capability to undertake the tender and Undertakings stating that they shall abide by all rules and regulations and terms and conditions shown in tender documents. All record and documents to evidence meeting the requirements of technical bid will be opened first and the second cover containing the price Bid (financial bid) will be opened only if the Bidder is found to be qualified. The Chartered Accountants/CA firms shall quote the audit fee per month. The same will be valid for the whole year 2016-17.

2. Bidders required to apply separate bid for each district and head office as separate unit.

3. Bids must be accompanied By EMD of Rs. 20,000.00 which should be paid online through e-Procurement portal.

4. Bid documents may be downloaded through Government of Karnataka e-procurement website, https://eproc.karnataka.gov.in

General Manager

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SECTION-2TERMS AND CONDITIONS

1) SCOPE OF SERVICE: The bidder is required to apply to provide Internal Auditors to carryout the monthly internal audit work of district/head office as per the scope of audit given in Annexure-III for districts and in Annexure IV for head office.

2) ELIGIBILITY CRITERIA :

(a) Chartered accountants/chartered accountant firms with ACA/FCA qualification shall take participate in bidding.

(b) CA/CA firm shall bid district wise and head office as separate one unit. There are 28 district offices (units) and head office. Applicant have to apply district wise separately and head office is to be considered as one separate unit.

(c) CA/CA firm shall quote audit fees per month, district wise separately and Head office as separate unit.

(d) The CA/CA firm must have its head office/branch office in the district head quarters to which district they are going to apply

(e) CA/CA firm shall have sufficient number of chartered accountants and auditing staff.

(f) CA/CA firm can also apply for more than one district separately by fulfilling the other criteria. Even though CA/CA firm is successful bidder in more than one districts, they will be appointed to only one district.

(g) CA/CA firm required minimum of 5 years experience.(h) CA/CA firm should ensure that only qualified and experienced chartered

accountants/Auditing staff are posted as internal auditors of the district/head office.

(i) Authorisation letter on behalf of the partner to have correspondence with the Corporation.

(j) The terms and Conditions/scope of audit is to be signed and to be enclosed.

3) DOCUMENTS COMPRISING THE TECHNICAL BID a) Attested copy of ACA/FCA Certificate of Practice.b) Attested copy of PAN CARD.

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c) Attested copy of Service Tax Registration.d) Attested copy of Income Tax paid certificate for the last three financial

years.e) Attested copy of address proof for having office at the district head

quarter to which applicant is bidding.f) Attested copy of experience certificate –past 5 years experience

certificate in execution of similar contracts, if any.g) Attested copy of partnership agreement.h) Attested copy of man power description -number of CAs and number of

other staff.i) Attested copy of affidavit for non-conviction:-Affidavit from the CA/CA

firm declaring that they have not been convicted for any offence for having any criminal cases under any act or orders there under regarding any conviction in previous years/present. (In Rs.20/-stamp paper and to be attested by the notary)

4) BID FORM a) Technical details should be submitted along with documentary proof

otherwise evaluation will be done ignoring that item as not available. This format should not be changed in any manner. Addition/deletion/alteration of the text will automatically render the tender invalid and therefore, will be summarily rejected.

b) Bidders shall furnish all the documents as specified in tender document. The bidders should upload the entire bid documents i.e., complete tender document duly signed and stamped including all Annexures, bid form etc., as a token of acceptance of all terms and conditions.

c) Audit fees should be quoted in the Financial bid format for rendering service of audit work ( Financial bid). This format should not be changed in any manner. Addition/deletion/alteration of the text will automatically render the tender invalid and therefore will be summarily rejected.

d) The bidder is requested to examine all instructions, forms, terms and specifications in the Bid documents, failure to furnish all the information

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required as per Bid Documents or submission of the bids not substantially responsive to the Bid Document in every respect will be at the bidder’s risk which may result in rejection of the Bid.

e) At any time, prior to the date of submission of bid, KFCSC may, for any reason, whether on its own initiative or in response to a clarification required by a prospective bidder, modify the bid documents by amendments.

f) The amendments shall be notified in e-procurement portal and these amendments will be binding on them.

g) EMD of unsuccessful bidders shall be returned after the tender awarded and accepted by the successful bidder.

h) The tenders will undergo evaluation at every stage of processing and any tender found at any stage not in conformity with the stipulated tender conditions including specifications/found to have uploaded defective and incomplete documents or found defective will be rejected.

5) BID PRICES

(1) The CA/CA firm shall quote the price as per Annexure-II attached to bid document. The composite price shall indicate all the types of Taxes, including service Tax etc., as applicable from time to time.

(2) The price quoted by the bidder shall remain fixed during entire period of contract & shall not be subject to variation on any account. A bid submitted with an adjustable price quotation will be treated as non-responsive and rejected.

6) EMD & BANK SECURITY DEPOSIT

(A) The bidder’s shall furnish an irrevocable performance Bank Guarantee for Rs. 20,000/-(Rupees Twenty thousand only) issued by Scheduled Bank which should be valid upto 60 days from the period of completion of the contract. However no interest shall be payable on the bank guarantee & the same will be converted into performance security. The bank security deposit is

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required to protect the KFCSC against risk of bidder’s conduct which may warrant the security’s forfeiture.

(B) Applicant CA/CA firm shall pay the Earnest Money Deposit (EMD) of Rs 20,000 for each district they apply. In the e-procurement portal using any of the following payment modes:a) Credit Cardb) Direct Debit c) National Electronic Fund Transfer (NEFT)For details on e-Payment services, refer to e-procurement portal for more details on the process.

(C) Any bid not secured in accordance with Terms and conditions will be rejected by KFCSC as non-responsive.

(D)The successful bidder’s EMD amount may be forfeited if the bidder fails to sign the contract.

(E) The EMD of unsuccessful bidder will be discharged/returned as early as possible but not later than 30 days after the expiry of the period of bid validity.

(F) Format and signing of Bid.Bidder shall submit the Bid electronically within the submission date and time published in e-procurement portal. The bid document shall be signed by the bidder.

(G)Deadline for submission of bids.(a) Bids must be submitted online in the e-Procurement portal by the

KFCSC before the notified date and time.(b) The KFCSC may extend the deadline for submission of bids by issuing

an amendment, which in case all rights and obligations of the KFCSC and the Bidders, previously subjected to the original deadline, will then be subject to the new deadline.

(H)Late Bids.In online e-procurement system, Bidder shall not be able to submit the bid after the bid submission time and date as the icon or the task in the e-procurement portal will not be available.

-5-(I) Bid validity

(a) The bids shall remain valid for 90 days after the date of opening of bids. A bid valid for a shorter period shall be rejected as non-responsive.

(b) A bidder, accepting the request of KFCSC for an extension to the period of bid validity in exceptional circumstances, will not be permitted to modify their bid.

(J) Process to be confidentialInformation relating to the examination, clarification, evaluation, and

comparison of Bids and recommendations for the award of a contract shall not be disclosed to Bidders or any other persons not officially concerned with such process until the award to the successful Bidder has been announced. Any effort by the Bidder to influence the KFCSC’s processing of Bids or award decisions may result in the rejection of their Bid.

(K) Clarification of BidsDuring evaluation of Bids, KFCSC may, at their discretion, ask any Bidder for clarification of their Bids, including breakup of charges. The request for clarification and the response shall be in writing or by cable, but no change in the price or substance of the Bid shall be sought, offered, or permitted.

7) FINANCIAL BID: The bidder shall quote the rate in the financial bid as per Annexure-II

8) TENDER EVALUATION The tender submitted by the bidder will be opened by the Tender Opening Committee constituted under Rule 11 of the “Act”. If the documents in technical bid are found to be in order, as specified above, only then the financial bid will be opened. Incomplete documents in the Technical qualification will result in rejection of the entire tender and the financial bid. The ‘Procurement Entity’, after due evaluation, will have option to prepare item-wise selection in the order of priority and call upon Lowest Tenderer to furnish Security Deposit and execute the agreement. If a tenderer is L1 bidder for more than one district he will be awarded the contract for only one district. At the same time for the remaining districts L2 tenderer will be considered for the award. The same

-6-procedure is followed in each tender case. If the L1 bidder fails to sign the contract, L2 bidder will be considered.The “Procurement Entity” before passing the order accepting a tender may negotiate with Lowest Tenderer.In the event of any discrepancy in respect to the rates quoted, the “Procurement entity” reserves the right to accept the lowest rate, at its discretion.

9) AWARD OF CONTRACT The KFCSC shall consider placement of Letter of Acceptance (LOA) to those bidders (in duplicate) whose offers have been found acceptable. The bidders shall return one copy of the LOA in token of their acceptance along with the performance security within three days.

10) KFCSC LTD., RESERVES RIGHT TO ACCEPT ANY BID AND TO REJECT ANY BIDS:The KFCSC shall not be bound to accept the lowest or any tender and reserves to itself the right to accept or reject any bid or to accept whole or a portion of tender, as it may deem fit, without assigning any reason there-of and without incurring any liability to the affected bidder(s) for the action of KFCSC.The KFCSC reserves the right to remove any Internal Auditor, if his work is not satisfactory (if audit observations are superficial & reports are not submitted on time). Further if the performance/conditions of the work of the auditor of a particular district is not satisfactory such CA/CA firms will be replaced with L-2 tenderer of the same district or other district existing CA/CA firm.

11) SIGNING OF CONTRACT Signing of Agreement shall constitute the award of contract on the bidder.

12) ANNULMENT OF AWARD Failure of the successful bidder to comply with the requirement shall constitute sufficient ground for the annulment of the award and forfeiture of the bid security in which event KFCSC may make the award to any other bidder at the discretion of KFCSC or call for new bids.

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13) TERMS OF PAYMENT Payment will be made at head office of “Procurement Entity” after deducting the applicable taxes etc. The payment will be made after timely submission of the internal audit report of a particular month and receipt of the bill.Further, the District monthly audit reports should be submitted within the next subsequent month to concerned District Manager and a copy shall be sent to the Managing Director KFCSC. The audit report will be scrutenised in internal audit wing at head office. The Internal Audit Officer at Head Office may ask auditor any information/clarification about the audit.

14) TERMINATION OF CONTRACT In case of any default by the service provider and in any of the terms & conditions (whether General, special, statutory), KFCSC may, without prejudice to any other right/remedy which shall have accrued or shall accrue thereafter, terminate the contract, in whole or in part, by giving one month’s notice in writing to the service provider.All instructions, notice and communications under the contract given in writing and if sent to the last known place of business, shall be deemed to be served on the date, even in ordinary course of post these would have been delivered to the service provider.Notwithstanding anything contained herein, KFCSC also reserves the right to terminate the contract at any time or stage during the period of contract, by giving one month notice in writing without assigning any reason and without incurring any financial liability whatsoever to the service provider.

15) OTHER OBLIGATIONS a) KFCSC prior to the expiry of the tender validity period, shall notify the

bidder whose tender is accepted for the award of the contract. The terms of the accepted offer shall be incorporated in the acceptance letter issued.

b) Notwithstanding the above KFCSC reserves the right to accept or reject any tender and to cancel the bidding process at any time prior to the award of the contract.

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c) The undersigned reserves the right to select from the candidates proposed by the successful bidder and also the right to ask for replacement at any time.

d) The replacement shall be given within three days and for delay of each day, a penalty of Rs. 100/- will be levied.

e) TDS shall be made in the bills of successful bidder.f) Security deposit will not carry any interest and will be refunded on

cessation of agreement. We agree to the above terms and conditions.

General Manager KFCSC LTD

ANNEXURE-I

APPLICATION FOR APPOINTMENT OF INTERNAL AUDITORS FOR KFCSC, BANGALORE FOR THE YEAR 2016-17

To,The Managing Director,Karnataka Food & Civil Supplies Corporation Ltd.,# 16/I, Millers Tank Bed Area, Vasanthnagar,Bangalore-560052.

Dear Madam,

With reference to your tender notification dated ……… we are interested to take up Internal Audit work of…………….. District office of your esteemed organization. For the year 2016-17I/we furnish herein below the particulars as required by you.

1) Name of the CA/CA firm and addressWith Telephone and e-mail

2) Membership No., and PAN No.3) Year of establishment4) Head office/Branch Address located at the above mentioned district for

which we want to take up the internal audit.5) Experience of last five years, out of five

Years as Internal Auditor/StatutoryAuditors of any Karnataka GovernmentUnder takings. (enclose documents) if any

6) No of staff of the CA company/CA firma) Chartered Accountantsb) others

Palce:Date: Signature with Seal

ANNEXURE –II

FINANCIAL BID

Financial Bid should be in form-B indicating audit fees after going through the Scope of Audit. Bidder shall quote audit fees per month.

SIGNATURE OF THE TENDERER

Date:Address:

Form-B (FINANCIAL BID)I/We hereby offer to take up the Internal Audit work of below district of your Corporation at the fees indicated against the district.

District name Period Audit fees per month2016-17 Rupees in figures and

in word

SIGNATURE OF THE TENDERER WITH SEAL

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ANNEXURE III

Scope of Internal Audit of District office

Scope of Internal Audit of each district office includes

(A) Pre-Audit:- All of vouchers/expenditure of more than Rs. 10,000.00 to be pre audited by the internal auditor of the district. The auditor is required to be available always at the district head quarters. Auditor has to attend the pre audit work as and when the district office requires.

(B) Physical Verification of Stock :Internal auditor of the district has to conduct the physical verification of stock of each wholesale point/Retail point/MDM point/MSP stock point/LPG showroom & godown/Petrol bunk once in three months (i,e once in a quarter). Auditor has to carryout the physical verification of stock as per the circulars and instructions issued by the KFCSC.

(C) Post Audit: Internal auditor of the district has to carryout the post audit of all the transactions of the district office. The post audit of district office also includes the audit of WSP/RSP/LPG units/kerosene units/petrol bunks under the district office (Districtwise list of WSP/RSP/LPG units/kerosene units/petrol bunks is given in annexure VII)

The details of areas/aspects to be covered under post audit of the district office are as follows:-

KARNATAKA FOOD & CIVIL SUPPLIES CORPORATION LTD.,SCOPE OF INTERNAL AUDIT

I. DISTRICT OFFICE. 01 Cash Book Verification of receipts and payments

classification of Head of Account ledger posting and Balancing of both ledger and Cash Book.

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02 J.E. Book Verification of JEs with supporting Documents.

03 Bank Reconciliation Verification of unrealized cheques more than 03 months and late realization of D.D’s remitted to Bank. Whether BRS done or not offer comments.

04 Voucher Files Proper maintainance of Vouchers with supporting documents.

05 Bank Remittance Remittances of Sales proceeds to Bank as per DD Register.

06 Stock Account Verification of Allotment of D.C/scheme wise Purchases and scheme wise Accounting of stock in Stock Register.

07 Payment of Admn Charges

Verification of Admn, charges paid to DC as per costing sheets and proper classification of stock under respective scheme and price at which it is sold.

08 Books of Forms & Register

Verification of proper accounting of books and Forms purchased/supplied form H.O/got printed at unit office and proper issue of the same to W.S & R.P.S

09 Assets Register Maintaince of Assets Register for Land and Buildings etc.,

10 Furniture and Fixture Register

Maintaince of Furniture and Fixtures Register and its Valuation.

11 Payment to Transport Contractors

Verification of Transport contractors Bills with chalan of the quantity purchased/lifted along with stock receipts and release order. Transit shortages/Deduction of TDS & Remittance of TDS within due date.

12 Purchase Register Proper booking of purchase/payment adjusted as per costing sheet with reference to Invoice/R.Os and cross check to the stock register and JE’s proposed. R.O Register to be checked specially to verify that the R.O quantity is received before taking new R.O.

13 Sales Register Verification of quantity sold with reference to schemes under which it was purchased and sold with reference to costing sheet proper accounting of sales proceeds to cash book and sales JE proposed with reference to Stock Book

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14 Monthly Stock Verification Reports.

The closing balance as per physical stock verification should agree with that of the opening balance of parallel stock Book maintained at office.

15 Differential Cost The claims are made to Govt towards Differential cost in accordance with the purchases, costing sheets and JEs proposed. The correctness of differential cost claims made by the D.O pertaining to all commodities with reference to allotment quantity, costing sheet, scheme and with respect to subsidy JE. The same is claimed monthly from Govt of Karnataka as Difference cost under NFSA/MSP/AAY/OMSS Schemes.

16 Retail Transportation and Handling Charges

(TCHC)

TCHC are Claimed from Govt in accordance with the made at Wholes Sale Points. TCHC are claimed for reimbursement at Govt rates in respect of Rice/Wheat/P oil/Salt/Ragi/Jowar etc. and this has to be checked by opening Fist Software.

17 Advance Register Review of advance made/adjustments made and Balance in accordance with provisions, any advance long standing with-out adjustment- staff, Govt, and other parties A/c to be reviewed.

18 Log Book Proper maintains of log book account of fuel & repairs, Tour Diary of DM’s.

19 Service Register Verification of services register, maintaince of leave account, pay scale/increments sanctioned etc.,

20 Trial Balance Verification of monthly/quarterly/yearly trial balance/consolidated trial balance.

21 Verification of Accounts Verification of quarterly/half yearly/annual accounts. Proper agreement of purchases & sales with that of Finance stock statements with reference to administrative charges paid/Differential cost claimed etc.,

22 Deposit Register Proper maintainance of Deposit register.23 Sundry

Creditors/Sundry Debtors Registers.

Verification of sundry creditors and sundry debtors register and entries posted regularly.

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24 Telephone Register Maintaince of Telephone register & entries made regularly on day to day basis.

25 Viability of DO/WSP Verification of /WSP/RSP/LPG viability of the unit office.

26 Daily Sales Abstract Acknowledgment Register

Verification of acknowledgment/receipt passed at unit office for receipt of D.S.A’s wholesale points and with that of the bank remittance register verify whether delay in remittance at unit office or delay in sending the DSA from the depot.

27 Misappropriation If there is any misappropriation either in District Office, wholesale points, retail points or in any other transaction should be reported to the Chief Executive at the earliest through Flash Report.

28 General All the points which are generally seen/pointed out by the Accountant General Auditors and Statutory Auditors shall also be seen/observed by the Internal Auditor of the Auditing firms.Compliance with regard to various approvals, orders or instructions given from Head Office and Costing Sheet and/or G.O copies sent from Head Office or received directly from Government of Karnataka from time to time.Compliance with the Tax Audit point and to report any deviation thereon.Periodical reconciliation of ---Funds Transfer from Head Office to Districts and Vice-Versa along with inter Districts, intra-Districts transfer.Creditor for recoveries –JE proposed from Head office whether JEs are responded properly or not.Ensuring compliance for accounting compliance for accounting & audit principles, accounting standards and internal audit control system including suggestions for improvement.Verifying compliance to various statutory provisions applicable to the corporation.

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II WHOLE SALE POINTS:-1 Stock Book Register Verifying stock A/c at Wholesale points

maintained as per the allotment (Schemewise). Whether all Stock Receipts are accounted on day to day basis and DSA’s charged off accordingly, internal Stock Transfers with proper order. Stock Transfer out wards with proper orders or not.

2 Stock Receipt Books Whether the stock receipts are passed on the day of receipt of stock with reference to the Truck chits/invoice of the suppliers. Whether all the receipt are supported by the TC/Invoice (which is to be pasted to stock receipt) stock receipts are passed to that of Internal Stock Transfer.

3 Passing of cash cum delivery notes

Whether the CCD’s are passed to each and every delivery or not and filled all the columns of the CCD’s are passed against the payment or not, with proper rate (as per costing sheet) and scheme variety are mentioned or not in every CCD to be verified.

4 Daily Sales Abstract Whether all the CCD are accounted in DSA, serially or not. If any CCD’s missing to be confirmed, whether it is cancelled with out the copies of CCD’s. the total of the quantity column multiplied by the rate should agreed with total of DD’s and cash receipt.

5 Acknowledgment of submission of DSA to the District office

The details of submission of DSA to the District Office along with DD and cash to the office with in the stipulatedtime to be verified.

6 Maintenance of Furniture and office equipment and Books form register.

The Account of Furniture and Fixtures, Bill Books & other forms obtained for District office/purchased should be recorded properly.

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Name of the wholesale Point……………………………Name of the Depot ………………………………………….III-RETAIL POINTS.

1 Stock Books Whether stock lifted from wholesale points are properly accounted or not in the stock register is to be verified and day to day sales are properly posted to stock book with reference to the day book of retail point.

2 Day Book Whether card wise postings are made in the day book or not are to be verified and scale of issue is properly followed or not is also to be verified.

3 Stock Receipt Book Whether stock receipts are passed to all the stocks received or not be verified.

4 Empty Gunny A/c Empty Gunny A/c is to be verified with reference to the stock receipts.

5 Bank Remittance Whether cash is remitted to bank daily or not to be verified with the prescribed challan supplied from the District Office.

6 Verification of Monthly Sales Abstract

Whether the Monthly sales abstracts are properly filled indicating rates at which sold & verify amount remitted to Bank with reference to Bank statement and verify whether stock receipts are passed properly or not an day to day basis.

The internal auditor of the district has to issue a monthly audit report in a prescribed format. The long form of audit report of district is given in annexure-VC) Verification of quarterly and annual accounts of the districts: The

internal auditor of the district has to verify and certify the quarterly and annual accounts of the district prepared by the district office.

D) Internal auditor has to examine and verify the compliance report submitted by the district office and then forward the same to head office with seal and sign.

General Manager KFCSC

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SCOPE OF INTERNAL AUDIT OF THE HEAD OFFICEScope of work: The scope of work of the Internal Auditor of head office will evolve with the growth of organization. However at present the functions of the Internal Auditor are broadly designed to cater to the needs of the management so as to ensure the following.

I-Pre Audit:a) A CA/CA staff shall be daily available at head office to conduct the pre

audit of the expenditure of more than Rs 10,000/- which is mandatory.b) Review of files from the various functional departments involving

financial commitment;c) Review of all agreements, contracts, etc., to see that these are within

the frame work of legal requirements and meets various statutory requirements. These functions have to be carried out before they are sent to approval of authorities.

d) Review of financial statement prepared by the Corporation for submission to the Board, Banks etc.,

e) Verifying all forms and reports to ensure that statutory formalities as required under the Income Tax and Sales Tax laws and other laws are being complied with;

f) To advise the Corporation in respect of compliances to various statutes applicable to the Corporation and also those applicable as per Accounting Standards of the Institute of Chartered Accountants of India.

II Post Audit1) All the guidelines and administrative circulars given by the Head office are

followed by the subordinate staff and the extent of adherence of such policies is to be reported.

2) To ensure that the accounting system is appropriate and has been followed efficiently.

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3) Implementation of adequate Internal Controls in the Company to safequard the assets to ensure propriety of expenditure and to exercise control on payments.

4) Verification of Bank Reconsiliation Statement and action taken on outstanding items if any.

5) Verification of compliance with statutory deduction and their remittance to appropriate authorities.

6) Expenditure is made with due regard to economy, efficiency and cost effectiveness.

7) Verification of various books and statutory records maintained at Head Office & to point out any deficiency, if any.

8) Ensuring that all laws including regulations and other internal requirement and management policies and directions/guidelines applicable to the Corporation are being complied with.

9) Whatever the Accountant Geneal’s and statutory auditors will check with KFCSC will also be the primary duties of the Internal Auditors of the auditing firms.

10) In order to efficiently carryout their obligations and provide assurance to the management, the internal auditors of the company shall

a) Examine the financial and operational activities of the company.b) Undertake detailed testing of balances transactions and procedures.c) Physically verify assets that are created.d) Identify, classify and report such information that may be in deviation

with any set of practices, statutory requirement and management directions/assessments.

e) To verify the assessment orders, PF, Sales Tax, Service Tax, Income Tax and other authorities and report the status of such cases.

11) Comments on the accounting records, system and controls that were examined during the course of Internal Audit to identify the deficiencies and weakness in the system and make recommendations to improve them and also suggest new system where ever required.Highlight the mistakes that are material and have significant impact on the performance of the company.

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12) The internal audit should cover the following section.a) Financial Section & Accounts Sectionb) Marketing Section.c) Administration Section. d) Transportation Section.e) Company Secretary’s Section.f) Internal Audit Section.g) IT Section/Fist Section.

III Verification of quarterly & annual accounts. Verification of quarterly accounts submitted by district units and consolidated final accounts prepared at Head Office before submission to Board for approval.

IV-Othersa) Internal Auditors will be required to carry out any other assignment

given by the Managing Director which shall form part of the scope of work outlined above and shall include giving advice on related issues.

General Manager KFCSC

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KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED, BANGALORELONG FORM OF MONTHLY INTERNAL AUDIT REPORT OF THE DISTRICT OFFICE

INTERNAL AUDIT REPORT FOR THE MONTH OF:DISTRICT OFFICE:

SL No PARTICULARAS

I Physical verification of cash

a)

b)

c)

Date and Time of physical verification of cash.

Is it tallied with Cashbook/Bank book in Fist as on:

Whether D.M. makes surprise physical verifi- cation of cash. Please furnish the date of verification.

II Cash Book Verification

1

a)

b)

c)

d)

Cashbook updated in Fist upto what date

Whether the cash payments/Receipts are recorded in Cash book properly

They are supported by Bills with Serial No is entered in the Bills

Whether the Cash Receipts are passed and Receipts/Payment Vouchers are countersignedby District Manager.

Vouchers are being maintained Properly.

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02 Whether DO is accounting only DD transactions in the Cash/ Bank Book OR Cash received also recorded in the Cash/Bank book. In such cases DDs on hand and Cash Balance is to be recorded in Cash/Bank book Separately.

03 Whether proper classification of Head of accounts is done or not(If not, particulars to be mentioned and rectification done there only)

04 Whether cash payment is made by complying with IT Act 1961. Is there any payment of cash for Rs.20000/- and above for single transaction on particular day of the month(Please note that amendment is proposed in IT Act)

III BANK BOOK VERIFICATION

01 Whether :-District Office is maintaining Bank Book for the Bank Transactions.Receipts and payments are properly entered in the Fist Software..

02 Whether System generated Vouchers /Receipts are serially numbered and the same is entered in the voucher slips.

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03 a)

b)

Whether Cheque books are kept in joint Custody.Cheques are being signed jointly or severally by District Manager and Assistant Manager.

04 a)

b)

Whether DDs/ Cash/Cheques received from WP/RP/ Govt are deposited on same day with the bank. Any delay has been observed in remittance.

05 a)

b)

Whether paymentsVouchers/Receipts are supported by Bills.

Whether District Manager has signed the payment Voucher and passed the bills for payment.

06 a) Nature of Account, No, Name of

the bank, balance is to be furnished. Offer comments for the operation of the account, Annexure-1

b) After payment whether paid & cancelled seal is marked on the bills/vouchers.

07 You have verified classification of Head of Accounts and sub Ledger is done on day to day basis in Fist software.

08 Whether Bank Pass Sheet is obtained from the bank on Monthlyy basis from all the banks in respect of all accounts.

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9 Whether DO is maintaining bank books bank wise and account wise in Fist.

10 If Bank charges paid by DO during the month bank wise and account have they reversed in subsequent months.

11.a)

b)

c)

d)

12.

13.

Whether the Wsp /RT collection amounts are transferred to main DO accounts sweeping basis on day to day.Are the amount reconciled properly

Are the Bank entries are making by D.O. collection A/c. wise

The Fund transfer to HO on day to day sweeping basis. The Dos are recording day to day in the FIST bank bookBank Remittance by DepotsFurnish delay in DD deposit. depot wise as per Daily Sales Abstract. Interest to be recovered for such delay remittance to be quantified and mention the details.

Whether DD amount is being compared with D.D/Cash remittance statement as per the Fist software for ensuring that the amount deposited is tallying to Sales made by the Depot.

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IV BANK RECONCILATION

1.a)

b)

c)

Cheques / D.D’s Deposited but not realized. and Cheques issued but not presented to bank by the beneficiaries within 03 months. If not whether DO is reverted such DD/Chques.( rectification to be done immediately)

Whether the Bank Reconciliation Account wise/Bank wise is done through Fist software:Yes/No:

Whether all Bank accounts are reconciled, if not mention the un reconciled bank accounts with account wise.

2 a)

b)

Whether D.O.is main- taining Bank wise & A/c. wise reconcile- ation. and copies are Signed by D.M.s and same is properly filed.

Are you satisfied with Ban Reconciliation. Comment.

3 Whether entries have been affected in respect of Bank charges/funds transfer from H.O./other offices in the Bank.

4 Whether reconciliation statement is attached to the report in respect of all Bank A/c’s. Annexure-2

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5 In case of payment of Rs.10000&above whe- ther pre-audit is being carried out. Whether pay ment is in order.

V JOURNAL ENTRIES

1

a)

b)

c)

d)

e)

f)

Auditors mandatory check with stock statement and allotment wise.

Purchase (Month wise)

Diff. cost (Monthwise)

Whether the J.E.’s passed for the Stock issued without value at WSP/RP through “Enter Sales Details” Ex. Qty. of Police/ Fire ExtinguisherDepartment /Homegaurd/Prison other whole sales nominees etc.,

Stock transfer inward and outward from one District to other District.(Month wise )

Responding JE’s ( HO and other district offices.)(JE wise)

Whether the JE’s vouchers are properly numbered and filed with Authorized Signatures.

(if the above entries are not updated please comment.)

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VI Inward and outward Register

1 Whether In ward Letters/ HO Circulars/ Govt Instructions are entered in the In wards Register serially.

2 a)

b)

c)

Whether Inward and outwared register is maintained properly. Delivery/Booking Slip Number is noted. Acknowledgement is being obtained it is being checked by the concerned Officer

3 What is the postag/Courier Charges paid for the month. Whether Bills submitted by the Courier Agent have been checked by referring to Outward Register

4 Telephone Register-Maintenance of Telephone Register & entries made regularly on day to day basis. Telephone charges paid during the month

VII Purchase Register1 Whether Purchase Register is

maintained properly and all the details are entered in the Register on day to day basis

Annexure-3

2 Whether they are maintained scheme wise and commodity wise

3

Whether You have verified Purchase in- voices/R.O & have been kept safely and being serially numbered.

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4 Whether the Purchase J.E. passed in Fist Soft Ware with enter purchase details as per the District Stock Book Abstract under Stock Receipt Column. The purchase should be booked only for Stock Receipt Quantity. Not for the allotment/R.O/ Quantity.

5 Whether the purchase value as per the purchase agreement is tallies with the Trial Balance. Yes/No/ If no give reasons.

6 Whether Register is being maintained for the difference between the quantities lifted at FCI Godown by the Transport Contractor and the quantity received at WP. Furnish details. And steps taken by DO in this regard such as recovery for shortages

7 Whether adequate control of movement of stock from FCI Go down to WP has ensured. Offer your specific comments.

8 Whether the full quantity is received against the payment if part received the balance due at FCI

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9 In case of NCDEX purchase is there any delay in supply or Excess/short supply

10 If so, is any penalty is deducted out of payments.

11 E-auction stock issued to Other wsp nominees DOs are accounting purchase and sales in the FIST (district PC) Invoice wise.

12 Whether the full amount received in advance,before Stock issued(Ros) to other whole sales nominees ,if not comment on such cases.

13 Furnish the particulars of Date of receipt of Allotment Letter from DC , purchase and lifting and when the lifting from FPD complited for this month. This is to ensure the paditar khatri Annexure-4

VIII MSPO Procurement / Levy Audit

1 Whether Procurement/ Levy Register is maintained by procurement point wise properly.

Whether Grain voucher has been passed according to documents produced by Farmers.(Qty/Rate as per H.O.Circular) in FIST

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a)

b)

c)

Whether payment register/RTGS has been maintained with Cheque details.

whether payment is tallied with the stock receipts with procurement centres wise

whether Stock tallied with FIST stock statements

2 Whether Scrutiny of T.C. Bill on MSPO/ Levy payment has been made. Separate register has been maintained.

3 Whether imprest bills & handling & labour charges has been scrutinized according to Circular issued by Head Office. & Register is maintained for such payments.

4 Whether market cess is paid & Register is maintained for such payments.

5 Scrutiny of Storage charges on MSPO/ Levy bills has been done & whether a separate payment register is maintained or not.

6 Scrutiny of Hulling charges on MSPO bills has been prepared & a separate register is maintained or not.

7

Whether levy Rice has been procured based on MSP Certificate issued by D.D.

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8 Whether Quality checking as per FAQ has been done.

9 Issue of Stock:MSP/levyWhat are the para meters used for checking (1) Allotment copies (2)Release order copies & (3) Truck chits.

10 If the MSP/Levy stock allotted to other whole sale nominees confirm the full value is received before issue of Ro’s/DO’s

11 MSP payments for that year wise check the correctness and geninity of MSP expenditure campare it with costing sheet after your comments. Annexure-5

IX Sales Register

1 Whether Sales Register is maintained properly, scheme wise and commodity wise in the Fist Software. Have you verified the sales & same is enclosed.

Annexure-6

2

a)

b)

c)

Whether

Daily Sales Abstract is received from WP/RP. It is acknowledged by District Office.Whether DDs received along with DD Remittance statements as per Fist only and Total Sales have been cross checked.

3 Have you found any delay in receipt of DD from WP/Other Outlets

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4 Whether the J.E.’s passed for the Stock issued without value at WSP/RP. J.Es passed through “Enter Sales Details” Ex. Qty. of Police/ Fire Extinguisher Department /Homegaurd/Prison other whole sales nominees (TAPCMS). Verify and mention the

J.E number & verify the same with the stock statement/sales agreement of WSP concerned. This is to verify whether the sales values to TAPCMS/ police/ fire/homegaurd/other taken in to account or not.

x Stock Register1 Whether Stock Register is maintained

Commodity/scheme wise on daily basis at WSP through Fist software.

2 a)

b)

c)

d)

Whether District Office is receiving monthly physical verification. Stock report of WP/RP. From the Physical verification office deputed.Cross verification is carried out by District Office with Fist Soft ware

Any difference is noticed and recorded by DO. Furnish details in quantity/ commodity wise and amount.Any surprise physical verification has been conducted by the District manager during the month. Comment.

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3 a)

b)

As per the instruction Physical verification of stock is to be carried out by the Auditors at least once in a quarter. Give the detailed report of physical stock verification of WSP/RT/MSP storage points during the month.If any major shortages noticed during physical stock verification have you given flash report to HO.

4 a)

b)

Whether Stock transfer Register is being maintained for transfer of Stock form one scheme to another scheme. As per the Allotment. If not reasons for the same.

Is there any diversion of stock from MDM to PDS or vice versa in any of the WSP

5 Whether Stock transfer from One Depot to another Depot maintained and one district to another district. As per DC orders.

XI Differential Cost 1 a) Whether differential cost on

rice/wheat & Sugar accounted for the purchase NFSA RO Qty from FCI & Sugar Factory is maintained properly. Are the entries are passed through J.E. in the Fist.

b) In case of E-auction purchase and MSP/Levy stock(Rice, wheat, Salt, P oil, Ragi, Jowar etc.,) Claims are made and accounted(JE) on Allotment basis.

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c) In case of E-auction purchase stock(Rice, wheat, Salt, P oil, etc.,) Claims are made on purchase rate FIFO basis yes / No.

If NOT comment.

2 If not accounted on account of for having not received full amount please inform the amount received and the balance to be received and total amount to be informed

3 Whether Diff. cost Claim and Received Register is maintained properly.

4 Whether Diff.cost claim is submitted monthly basis to DC.Office. date of submission and amount claimed and received check the correctness of the claims.

5 Whether subsidy/Differential cost watch register is maintain in D.O or not the register is maintained monthwise/schemewise/allotementwise.

Internal auditor has to verify & furnish the details of subsidy/Differential lost to be claims/Received/Balance to received.

Annexure-7

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XII Transportation charges.

1 a)

b)

c)

d)

Whether Retail TC and Handling charges are claiming on the basis of Each whole sales points TC/HC report on monthly basis

Whether register is maintained and reconciled on monthly basis. Yes/No. if no advise to maintain the same

Claimed amount is fully received wsp wise yes/no.

If no whether diff. amount is recovered from the concerned depot managers.

2 a) Whether Transportation Register is maintained properly. What is the total charges paid during the month In respect of Rice/Wheat / Sugar. Etc.,

b)

c)

d)

Is there any delay in receipt of goods. In case of delay what is the reasons. Is there any difference between the quantity lifted at FCI Godown and delivered at Whole Sale Point.

If so please inform the difference in quantity and the value.

Is there any cases of delay in lifting from FCI by transport Contractor . if so

16-

e)

f)

Any demurrage charges are collected by FCI from KFCSC.

whether the same is recovered from the Transportation bill.

3 a)

b)

WhetherYou have verified Transport Contractors Bills with that of the qty. purchased/lifted along with stock receipts/release orders.

TDS is collected and remitted.4. Whether have you verified the

Transportation bills before sending for payments to D. C office.

XIII Payment of Admn. Charges on Rice/Wheat/Sugar/K oil

1 Whether you have verified Administrative Charges paid to DC as per Costing Sheet and proper classification of stock under respective scheme and price. At which it is sold.

XIV Details of Revenue expenditures during the month. Auditor is to verify the revenue expenditures/administrative expenditures the correctness and the genuinity of the expenditures of District Office/WSP/RSP/LPG if any irregularity offer your comments.

Annexure-8

XV Viability of the D.O Auditor is to verify the viability statement of the District Office/WSP/RSP/LPG and offer the comments.

Annexure-9

XVI ADVANCE OTHER THAN STAFF

1 Whether Advance paid Register is maintained Properly

17

2 a)

Whether Advance paid to FCI is being adjusted soon after receipt of goods at Whole Sale Points.

b) The entries are passed during the month it self. If not date of passing and amount during the subsequent month. Offer comments for having not passed the entries.

3 Furnish details with regard to outstanding Advances for more than 3 & 6 months. Whether reasons have been found out for such old Advances. Furnish details. Suggestions for rectification. Whether records are made available for verification What steps DM has taken.

XVII Staff Advance Register1 Whether Staff Advance Register is

properly maintained.

2 Please furnish the details of irregular account such name of the staff amount since when it has become irregular account what steps have been taken by DM

3 Whether Outstanding advances of transfe- rred employees have been transferred to concerned districts through J.E. Yes/No If no comments.

4 Verify & furnish the details of staff advance. Comment what type of advance it is. Is any recovery (misappropriation) amount raised to advance. Give the recovery position, action taken by Dm.

Annexure-10

18

XVIII Deposit Register

1 Whether Deposit Register is property maintained. Furnish details such as Date, Nature and amount of all the category.

XIX Sundry Creditors/ Debtors Register

1

Whether Sundry Creditors and Sundry Debtors Register maintained properly

2 Furnish date wise outstanding balance of more than 3 & 6 months and whether reasons have been ascertained for such long outstanding, What steps have been taken by the DM, Whether you have verified the relevant records for the same

Annexure-11(Sundry debtors)

Annexure-12(Sundry Creditors)

XX Log Book

I Whether Log Book is maintained & verified properly in all respect

2 Whether Vehicle is in the name of the Corporation or taken on monthly hire. What is the amount of hire charges paid. What is the total km traveled in a month.

3. What is the expenses incurred by the Do for Repairs and Mainte- nance for the month

4 Whether HO permission is taken for the major repair

20

5 In case of accident whether insurance claim is lodged Whether amount of claim received What is the present position Whether Vehicle is fully insured,

XXI Service Register

1 Whether service charge register is up dated Whether It is properly recorded.

2 Whether leave account, pay scales / increment sanctioned etc is properly recorded therein.

3 Whether Attendance Register is checked Whether Leave is noted properly.

4 Whether earned leave account of the official retiring on superannuation or any other case is verified and whether certificate is attested in the Service register for settlement of encashment benefit as per Rule (18(A) of KCSR

5 Whether Proper job allocation is done. Whether DO is maintaining JOB allocation Register

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XXII Trial Balance, Receipts & Payments1

a) b)

Whether Monthly Trail Balance is extracted. Trail Balance is Talli- ed. Whether same is attached to the Report.

Annexure-13

2 a)

b)

Whether Monthly Receipts and Payments Accounts is prepared. Same is verified and checked, Whether same is attached to the Report .

3 Whether Trail Balance is included Sales, Purchases, whether tallied with Purchase / Sales agreement. Fist Server consolidated.

4 a)

b)

Whether All the accounts have been verified.Classification is done correctly Whether the balance tallies with the sub ledger balances.

XXIII FUND FLOW STATEMENT1

a)

b)

c)

Whether Fund Flow Statement is prepared by the DO.You have verified the same Whether It tallies with the books.Fund transferred to HO source wise details to be verified. Annexure -14

XXIV Assets Register

1 Whether Assets Register is properly maintained as per HO instructions.

2 Whether additions/purchases made during the year and sales made during the year is properly recorded.

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3 Whether number is being done for all the furniture items.

4 Whether physical verification is carried out. When it is being done.

5 Whether approval has been obtained from HO for the purchase made during the year.

6 Books of forms & register verification of proper accounting of books and forms purchase/supplied from H.O/got printed at unit office and proper issue of the same to W.S & RPS.

XXV COMPLAINTS REGISTER1

a)Whether Compliance register is maintained. How many complaints received during the month and disposed off.

b) Whether monthly statement is being dent to head office

XXVI MDM Scheme goods purchase under Akshar dasoha programme

1 Commodity quantity and amount involved as per Fist stock statement.

2 Whether bills have been promptly submitted to ZP and received the amount from ZP in time. Reasons for the delay.

3 Check the correctness of the bills claimed.

4 What is the advance amount received & what is the amount adjusted and what is the amount balance.

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4 What are the total sales. Furnish in quantity, value etc and commission received thereon.

5 Whether delay is noticed while submitting the bills to ZP and receiving the amount.

XXVII TAXATION MATTERS1

a)

b)

Whether TDS is applied correctly and deducted while making the payment and remitted to Govt before the due date.Bank Challan for remittance is properly maintained

2 Whether Service Tax paid/ Received is accounted under separate head of the account

3 Whether Service Tax paid to TransportCont ractor, Service Tax paid on Rent, Service Tax received on Rent is properly accounted and remitted to the Government before the due date of the payment.

4 Whether Professional Tax collected from the employees remitted to the Govt before the due date. Whether PT is applied as applicable.

5 Whether ESI contribution is remitted to ESI Corporation in time. Whether it is applied as per the Act

6 In the case of VAT whether you have verified Input Tax Paid on purchase of Taxable Items based on Purchase Register, Purchase Invoice/Bills are taken correctly in the monthly VAT Returns. Whether You have verified Output Tax collected on Sale of Taxable Commodity is correctly taken in the monthly VAT Returns based on Sales Register/Sales Bills.

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7 Whether Monthly/Quarterly/Half Yearly/Yearly Return applicable to VAT/Profession Tax/Service Tax/TDS Income Tax submitted to respective to authorities in time. Whether any delay is being observed.

8

a)

b)

c)

Whether

VAT Return is submitted to HO before 15th of the month.

Return is being checked by you during the course of Audit.

Is there any delay in submission, non- furnishing particulars in VAT Return is observed.

XXVIII Returns submission to H.O.

1

a)

Whether

DO is Prompt in submitting Daily/Fortnightly/Monthly/Quarterly/Half Yearly/Yearly Returns to HO.

XXIX Misappropriation/late remittance/non remittance

1. Physical verification of stock by internal auditor

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a) Give the details of physical stock Verifications of WSP/RSP/LPG during the month in annexure 15-A and enclose the physical stock verification statements of the same.

Annexure-15A

b)

Have you noticed any shortages/excess stock. If yes, give the details and quantity the amount involved.

c)

Have you Flash Report to MD/IAO in such cases .

d)

Any other irregularities pertaining to stock

2. Physical verification of stock by DM/District office staff.

a)

Whether district office staff conducted the physical stock verification of WSP/RSP monthly as per the Head Office circular give details in Annexure-15-B

Annexure-15B

b)

Is there any stock shortages/excess tranced out by district staff give details-

c)

Verification DM’s daily for the month and other DM done P.V of stock of WSP/RSP/LPG give details. It misappropriation tranced out by DM give details.

3. Shortage/excess/misappropriation cases reported by any other made during the month by DC/DD food/food inspector/others give details.

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4. Whether you noticed any late remittance /non remittance of sales proceeds. Cases, give details WSP/RSP/LPG wise and quantity the amountANNEXURE-15-C Annexure-15C

5. If any stock shortages/excess late remittances/non remittance cases action DM has taken in such cases.

XXX Compliance Audit a) No of pending paras up to last

month audit b) No of audit paras during the

month c) Total no of pending paras of

internal audit ANNEXURE-16

d) Offer your comment about the compliance given by the DM for your audit observations.

e) Up to which month date of compliance given for the last time.

f) Have you verified the same and forwarded it to H.O with yours comments .

XXXI General1 Whether DO is compiling with

the various instructions, approvals instructions given by Head Office and also directions given by the Government

2 Whether JEs received from HO/Other Offices is accounted properly

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3

a)

b)

Whether

Register for transfer of Fund is being maintained. Once in a quarter reconciliation is being carried out Up to which quarter reconciliation is being done. Whether Report is submitted to HO.

4 Whether Accounting Standard complied with. Are you satisfied with internal control System for stock verification Job Allocation is being done by DM as per Ho instructions and Report is sent to HO

5 a)

b)

Whether Attendance Register and leave records are maintained properly Leave Application is received at DO promptly.

6 Is there any control on Movement of Stock? Any Register is being maintained Whether dead stock Register is being maintained by DO Whether Report is being submitted to HO

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7

a)

b)

Whether

House Keeping maintained neatly

Old records are properly maintained

8 Whether You have compared with the Budget and Expenses incurred at least on quarterly basis Any expenditure is exceeded Offer Your comments

9 Whether Circular received from HO is being maintained in chronological order at DO

10 Whether DO is promptly monitoring the pending bills/claims with Govt fund transfer

11 Whether Internal Control System on Inventory, Billing, Stock procurement Claim. Expenditures. Punctuality is satisfactory Make suggestion for the improvement.

12 Whether DO is maintaining Cash Boo and Bank Book on Computer or manually or both way. Offer your specific comments for the maintaining the accounts books.

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13 Whether the following Annexure has been enclosed to the report:

a. Annexure Ib. Annexure IIc. Annexure IIId. Annexure IVe. Annexure Vf. Annexure VIg. Annexure VIIh. Annexure VIIIi. Annexure IXj. Annexure Xk. Annexure XIl. Annexure XIIm. Annexure XIIIn. Annexure XIVo. Annexure XV-ap. Annexure XV-bq. Annexure XV-cr. Annexure XVI

14 Details of Wholesale Points/ LPG etc reports are enclosed to this report

XXXII Audit Details.

1 Date of post audit carried out

From --------to-------

2 Month

3 Report submitted to DM

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4 Is there any delay in submission of audit report

5 Reasons for the delay

6 Whether staff are cooperative

7 Name of audit staff and qualifications

8 Have you discussed your findings with DM for rectification.

Internal Auditor

Date:

Place:

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Audit observations

It is mandatory to mention your audit observations in this para your observations during pre audit observation during post audit, observations of physical verification of stock and any other observation made by you. These observations shall be treated as internal audit paras. Auditor has to get the timely compliance for these paras and give his comments in compliance report. The following areas shall be considered for the main observations.

a)Accounting system/proper Accounting/classification/Timely production of books/Records for Audit/Pending JEs. b) Statutory irregularities –TDS-VATc) BRSd)Staff Advancese) Sundry dettorsf)Purchase/Sales agreement matchingg)MSP-operations-irregularitiesh)P.V/Late remittance/non remittance/Godown maintainancei)Compliancej) Administrative lapcesk) Financial irregulariesl)correction from DMsJ)and any other irregularities auditor noticed

The main observations shall be given by auditor in the following format the facing sheet should pasted as 1st page of the Audit Report.

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FACING SHEET

We have carried out the Internal Audit of ------District Office for the month of ----------.

We have verified all the necessary documents as per the Scope of Audit and we have made some key observations.

AUDIT OBSERVATIONS FOR THE MONTH------------- OF ------------DISTRICTS.

SL. No Para No Area Audit Observation Auditor’s Suggestion

The District Manager is required to give the compliance report for the above key Audit Observations within 15 days.

Internal Auditor

-------------Districts

General Manager

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Annexure –VI

Long form of Internal Audit Report of Head Office KFCSC

SL.No Particulars Auditors Observations01 Finance & Accounts Section

a) Verification of Cash Bookb) Verification of all vouchersc) Classification Head of Accountd) Accounting System

Accounting PoliciesAccounting Standers

e) Taxation mattersf) FIST updateg) Any financial irregularitiesh) Whether all the instructions of circulars,

delegation of powers followed or not. i) Geninity of the expenditurej) Verification of Fund Transferk) BRSl) Borrowings & interest paidm) Fund management systemn) MSP/Levy/OMS claims (GOI claims)

MSP claimsLevy claimsSugar claimsInterest claims on government guarantee loans..

o) Salary Section check whethers all salaries made properly.

p) Sundry debtors Staff Advances Recoveries.

q) Quarterly Accounts Annual Accounts

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II MSP Section

a) Preparation of costing sheet III PDS Section/Engineering section IV Marketing Section;MDM/LPG/Petrol V Transport Section

Log Book, Maintainance VI Admin Section VII Legal Section

Pending Cases VIII I.A.O Section

Timely AuditPending ParasClearance of ParasMisappropriation cases

IX Company Secretary Section X Others

Annexure-VII

Details of WSP/RSP/LPG/Petrol Bunk/Kerosene points district wise

SL. No

District Office No of Whole

Sale Points

No of Retail Points

No of LPG

Units

No of Petrol Bunks

No of Kerosene

Points

No of MDM

Godowns

1 Bagalkote 08 1 012 Bangalore North 07 64 033 Bangalore South 12 31 01 01 01 054 Belgaum 11 55 Bellary 11 026 Bidar 06 057 Bijapur 11 028 Chikmagalore 08 05 01 029 Chitradurga 06 01 01 02

10 Davanagere 0711 Dharwad 07 0512 Gadag 0613 Hassan 15 03 0114 Haveri 04 01 0315 Kolar 06 01 01 0116 Koppal 04 0117 Mandya 04 02 01 0318 Mysore 15 05 0119 Raichur 0520 Shimoga 08 0321 Tumkur 10 03 03 0222 Karwar 05 10 01 0823 Chikaballapura 06 0224 Ramanagar 08 0225 Yadgiri 02 0126 Chamarajnagar 06 01 0327 Mangalore 05 01 01 0428 Gulbarga 09

MlÄÖ 212 141 09 03 09 48

GENERAL MANAGER