State Bank of Hyderabad
Inspection Department, Head Office, Gunfoundry,
Hyderabad
Empanelment of CA Firms for Concurrent Audit Work
Applications are invited from Chartered Accountants firms/ LLP as per
gradation by RBI for carrying out Concurrent Audit on full time, contractual
basis (renewable every year, at Bank's discretion) at its selected Branches /
Offices / Credit Processing Centers (CPCs).
Bank reserves its right to include/ exclude other branches/entities for
Concurrent Audit Work, as per requirement.
Last date for receipt of Applications: ………………………………….
C A Firm/ LLP, who are interested may submit Application / Bio-data on the
enclosed format.
Terms and Conditions:
a) Expertise in audit of Banking related areas and experience as concurrent
auditors of other Banks in the past is preferred, we suggest to specifically
mention, detail thereof.
b) Preference will be given to locally based Chartered Accountants or proximity
to where the Branches/ offices are situated.
c) One employee/Articled Clerk, trained by ICAI on Concurrent Audit, is to be
stationed on a full day basis at the branch on an ongoing basis.
d) A partner of the firm must visit the branch at least two/three times a week
depending upon business and risk profile of the branch/CPC.
e) The Concurrent Auditor should submit daily audit report to Branch on
irregularities observed for timely rectification.
f) Audit Firm should acknowledge the appointment letter as a token of the Firm
agreeing to the terms and conditions of appointment.
g) The Firm should have, at least two FCA partner for undertaking concurrent
audit of branches. Such FCA partners should have been with the firm for at
least two years in immediate past.
h) Mere submission of application does not, in any way, constitute
guarantee for allotment of audit job from the Bank. After empanelment the
work be allotted as and when need arises at the sole discretion of the Bank.
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i) The following firms are not eligible to submit the applications:i. The firms/ any partner should not have been disqualified/ de-penalised or
whose appointment has been terminated by RBI/ ICAI/ Bank/ Any other Bank
on an earlier occasion.
ii. The chartered accountant firms or any sister/ associate concern of such firms
which are on statutory audit panel of the Bank are not required to apply.
j) Those already on the Panel of our Bank and also those who have
submitted their Applications in the past for such empanelment need to
apply de-novo.
Eligibility criteria and Audit remuneration:
1. Eligibility criteria
a) Chartered Accountants should be either check category (Grade) 2 or 3 as
per RBI panel with gradation preference will be given in short listing of
applicant if they have experience as concurrent auditors of other banks,
suggested for Statutory Branch Auditor Appointment.
b) It should be a partnership firm of Chartered Accountants.
c) CA firm having qualified Information System Auditor (CISA/DISA)
with necessary exposure to systems audit is preferred.
d) Weightage will be given to the firm where the partners themselves were
ex-bankers or the firm has got tie-up with ex-bankers with requisite
experience and exposure.
e) The CA firm should have necessary office set up and adequate personnel
to ensure proper deployment and timely completion of the assignments.
Firms with head quarters where the SBH branch is to be audited is
desirable.
f) The CA firm has to execute undertaking of fidelity and secrecy on its
letterhead in the format prescribed by the Bank. Agreement also provides
for suitable penalties for non-performance / negligence. Service level
agreement provides for these conditions.
g) The assignment should be carried out in a professional manner and in
case of any misconduct & negligence the Bank is free to report the matter
to ICAI / RBI under the guidelines from time to time. This will be in
addition to the disengagement from the assignment.
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h) The CA firm should not sub-contract the audit work assigned to any
outside firm or other persons even though such persons are qualified
chartered accountants.
i) A declaration to be furnished by the CA firm that credit facilities availed
by the firm or partners or firms in which they are partners or directors
including any facility availed by a third party for which the firm or its
partners are guarantor/s have not turned or are existing as nonperforming assets as per the prudential norms of RBI. In case the
declaration is found incorrect, the assignment would get terminated
besides the firm being liable for any action under ICAI / RBI guidelines.
j) CA Firm to give undertaking to avoid conflict of interest that they will
not have any professional or commercial relationship with the borrowers
of the Branch / Department which they are auditing.
k) The CA Firm have to sign on the Do’s & Don’ts statement in order to
have proper arms length relationship with the Branch/ Department which
they are conducting audit.
l) The CA Firm to submit declaration that Firm and its partners are duly
qualified as Auditors in terms of section 141 of the Companies Act, 2013
and our firm or any of our partners do not suffer from one or more of the
disqualifications stipulated in Section 141 of the Companies Act, 2013 or
under any other law for the time being in force.
m) Any other terms and conditions of the assignment would be decided by
the Bank on a case-to-case basis.
n) Govt. of Indian / RBI guidelines on conduct of concurrent audit be
followed scrupulously.
o) Empanelment is for a period of one year and extendable at the discretion
of the Bank.
2. The remuneration would be as under :
Group-I Branches / BPR Entities
Group-II Branches/non- BPR entities
Group-III Branches
Rs.30,000/- p.m.
Rs.25,000/- p.m.
Rs.20,000/- p.m.
Bills will be paid on a monthly basis.
Scope of Concurrent Audit / Areas to be covered:
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Concurrent Auditor has to ensure and certify the Branch/ Office has complied
with following things:a) Compliance with RBI Guidelines / Guidelines of other agencies such as
FEDAI / IBA.
b) Compliance with Income Recognition and Asset Classification (IRAC)
norms (to verify whether the classification of advances has been done as per
stipulated guidelines).
c) Whether any of the activities prohibited by RBI are undertaken. Whether
important RBI guidelines issued from time to time in the field of advances,
foreign Exchange, investments and other statutory requirements prescribed by
RBI, are being complied with.
d) Compliance with guidelines / ground rules of agencies such as FEDAI / IBA.
Verification of various statements, returns prescribed by RBI.
e) Compliance with provisions of Banking Regulation Act, 1949.
f) Compliance with norms governed by Section 20 of Banking Regulation Act
in regard to granting loans/advances against own shares etc.
g) Section 20A of Banking Regulation Act: Restrictions on power to remit
debts.
h) Section 26 of Banking Regulation Act: Submission of returns of unclaimed
deposits.
i) Section 340 of Banking Regulation Act: Production of documents of
conditional nature to any other authority.
j) Section 452 of Banking Regulation Act: Return of paid instruments to
customers.
k) Banking Companies (Nomination Rules) Section 45 ZC, 45 ZE and 45 ZF of
Banking Regulation Act.
l) Any other provision which may be identified by Banking Operations
Department of RBI for verification of compliance from time to time.
(m) Forex / Security Transaction: To verify all FOREX / Security Transactions
undertaken at the branches / dealing rooms. The Concurrent Auditor will have
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to verify whether the transactions or decisions are within policy parameters laid
down, do not violate provisions of Exchange Control Manual / FERA 1973 and
other RBI instructions and they are within delegated authority.
(n) Any other guidelines / instructions issued from time to time from the Bank,
Govt. of India, RBI, State Bank of India and/or any other Statutory Authorities.
If the services of Concurrent Auditors are not satisfactory, Bank will have the
right to terminate the contract, any time by given one month’s notice.
(o) The Concurrent Auditor to perform the function of Statutory Auditor in
respect of providing various Certifications done presently by Branch Statutory
Auditors, covering NPA provisioning , Insurance coverage, P & L Account,
ALM, CRAR, DICGC, LFAR etc., similarly, Certification regarding Tax Audit
etc.
(p) The Bank reserves its rights to reject any or all the applications without
assigning any reasons therefore and no correspondence will be entertained in
this regard. The Bank’s decision in empanelment shall be final and binding
q)RBI circular on minimum audit program for concurrent auditors will be
followed (DBS.CO.ARS.No. BC. 2/ 08.91.021/ 2015-16 July 15, 2015).
r)A separate service agreement with suitable penalty clauses for nonperformance/negligence will have to be submitted before joining the Bank’s panel.
The agreement will be circulated after selection.
The applicants will have to submit these terms and conditions duly signed
and accepted by them along with their applications failing which the same
are likely to be rejected by the Bank.
……………………………………………………………………………………
I have read and understood the above terms and conditions and shall abide
by the same.
SIGNATURE OF APPLICANT
NAME
ADDRESS
CONTACT NO.
ICAI MEMBERSHIP NO.
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