Internal audit

Request for Proposal (RFP) for Preparation of Internal Audit Manuals for Department of Finance

REQUEST FOR PROPOSAL (RFP) FOR PREPARATION OF INTERNAL AUDIT MANUAL,
TRAINING MANUAL, DESIGNING STRUCTURE OF INTERNAL AUDIT FUNCTION AND
AUDIT PROGRESS MONITORING SYSTEM IN THE GOVERNMENT OF UTTARAKHAND.

1. Introduction

The state of Uttarakhand was carved out of Uttar Pradesh (U.P.) and formed in
November 2000. In undivided U.P. there was an internal audit setup for local
funds, panchayats and cooperatives. The same type of setup currently exists in
Uttarakhand wherein some internal audit work is carried out for local funds,
panchayats and cooperatives but at the department levels the internal audit is
practically non-existent.

The current situation of not having a structured internal audit setup has risen due
to non allocation of sufficient audit staff from U.P. at the time of formation of the
Uttarakhand. As a result coverage/frequency of the internal audit process is
inadequate.

In this scenario, the Government of Uttarakhand had no other alternative but to
outsource the internal audit tasks to practicing chartered accountants and other
professional bodies, in recent years.

The Government of Uttarakhand proposes to re-engineer and improve its existing
Internal Audit system to make it more effective and efficient and capable of
evaluating the effectiveness of the programs/systems of various departments of
Government of Uttarakhand.

The purpose of the Internal Audit Manual is to outline the scope of Internal Audit
function and to provide guidelines, procedures and methods for the internal audit
department to conduct and facilitate internal audits across all departments of

2. Request for Proposal (RFP)

Government of Uttarakhand would like to invite proposals from reputed
Management Consultants to design and develop an Internal Audit manual, Training
Manual and organizational structure for the Internal Audit function.

PPP Cell, Department of Planning, Government of Uttarakhand Page 1

April 21, 2009


3. Scope of Work

a) Study Current System

The Consultant would study the “AS IS” scenario of the current internal audit
setup in the state and evaluate the “gaps” for improving the system in line
with industry and international best practices.

b) Preparation of Draft Internal Audit Manual

The Consultant would be responsible for preparing internal audit manual for
various tiers of State Government – Department, District, Block, Gram
Panchayat, Nagar Panchayat, other local fund entities like Universities,
Development Authorities etc conforming to regulatory framework and drawing
from best practices. The Consultant would prepare detailed Internal audit
manuals indicating policies, procedures, methods, formats, work instructions,
Audit standards, Quality standards etc.

The Consultant would prepare Internal Audit manual for conducting audit with
varying objectives within various government departments such as:
• Financial Audit
• Program Performance Audit
• Risk Assessment audit including Information Technology (IT)

The Consultant would incorporate, in the internal audit manual, the
International Best Practices and Guidelines formulated by professional bodies
such as Institute of Internal Auditors, Committee of Sponsoring Organizations of
the Treadway Commission (COSO), Comptroller and Auditor General of India
(CAG) etc.

c) Dry Run the Internal Audit Processes

The Consultant would undertake a dry run of the internal audit processes as per
the draft audit manual, in three (3) departments, in each category of audit.
The target departments would be identified in consultation with Finance
Department.

d) Finalize the Audit Manuals

Based on the inputs and learning from dry run of audit processes, the audit
manuals would be finalized.


April 21, 2009


e) Training Manual

The Consultant would develop Training manual based on finalized audit
processes to build capacity within the government departments. The training
manual would include training calendar, participants’ profile, topics, training
methodology etc.

The Consultant would prepare continuous training plan and calendar to ensure
that the state government officials in the internal audit function to keep
abreast with the latest methodology, techniques and guidelines in the field of
internal audit.

f) Structure of Internal Audit Function

The Consultant would assess the volume of internal audit work within the state
government departments, its autonomous entities and the size of the Internal
Audit department that would be needed to operate and manage the internal
audit activities.

The Consultant would advise on the level of qualification, experience and skills
sets required for the government officials in the internal audit function.

The Consultant would design the organizational structure of the proposed
Internal Audit function including composition of suitable committees such as
Audit Committee, high level committee etc along with the role, responsibilities
and authorities at various levels.

The Consultant would advise on optimum arrangement of having an internal
audit setup within the government vs outsource arrangement or a combination
of both.

The Consultant would prepare guidelines for empanelment of Internal Auditors
for outsourcing the internal audit tasks.

g) Audit progress monitoring system

The Consultant would design and develop a computerized audit progress
monitoring system (audit plan to closure of audit para) which would include
functional requirement specification (FRS), software requirement specification
(SRS), suggested database, input/ output formats, master data structure etc.


April 21, 2009


4. Technical and Financial Capability

The applicants are expected to meet the following minimum pre-qualification
criteria. Applicants failing to meet these criteria or not submitting requisite proof
for supporting pre-qualification criteria are liable to be rejected.

S Criteria Whether Reference Details
No Met

1 The bidder should be a Yes / No Copies of certificate of
company/firms – proprietary or incorporation/ partnership
partnership/societies registered in deed.
India and operating for the last
five years
2 The bidder should have a Yes / No Extract of the audited Profit /
minimum annual average turnover Loss Statement and Balance
of Rs. 10.00 Crore in the last three Sheet
years (FY08, FY07 and FY06)
3 Out of the total turnover, a Yes / No Certificate from the Statutory
minimum of Rs 3.00 Crores should auditor.
be from management accounting,
process/performance auditing
(other than statutory auditing)
and management consulting
4 The company should have at least Yes / No Self Certification by the
30 full time professionals on the authorized signatory
rolls of the company
5 The Bidder should have completed Yes / No Copies of Work Orders
at least three Projects of
preparing accounting/ auditing
manuals for a government
department/PSUs for a total
consulting value of over Rs 50.00
lakhs in the last three years

The conditions (2), (3) and (4) will not apply to Public Sector Undertakings,
Statutory Authorities, government Societies and educational institutions (including
universities) which are under the administrative control of state and central
government. The conditions (1) and (5) will however apply to these organizations.


April 21, 2009


Evaluation Criterion

a) Overall Experience of Firm 40

S No Description Marks

1 Number and Complexity of Projects (Management 20
accounting, Auditing, Management consulting etc)
handled in last three years
− Private Sector 10
− Government/PSU 10
2 Number of Internal Audit Manuals prepared 20

b) Approach and Methodology 30


1 Understanding the Scope 10
2 Detailed approach and methodology 5
3 Work Plan and Staffing Schedule 5
4 Plan for Dry run 5
5 Contents and coverage in the manuals 5

c) Team Profile 30


1 Experience of Principal Consultant 10
greater than 20 years = 10
15 to 20 years = 05
Less than 15 years = 0

2 Experience of Project Manager 10
6 to 10 years = 5
Less than 6 years = 0
3 Average experience of Team members 10
6 to 8years = 7
4 to 6 years = 5


April 21, 2009


d) The financial bid of applicants securing 75 or more marks would only be
opened.

e) The bidder offering the lowest financial proposal would be declared the
successful bidder.

5. Time Frame

The selected consultant would complete the entire assignment within 18 Weeks in
the following manner.

i. Draft Report on Internal Audit Manual = 10 Weeks
ii. Dry Run as indicated in Para 3(c) = 4 Weeks
iii. Finalization of Internal Audit Manual = 4 Weeks

The Training Manual, Organizational Structure and Audit progress monitoring
system would be completed simultaneously within 16 Weeks.

6. Deliverables

The Consultant would provide five (5) copies of all deliverables (reports, formats
etc) in bound format and two (2) copies in soft form in CD. The Consultant would
furnish an undertaking that the draft and final reports will not be used, given,
disclosed, displayed, reproduced, circulated to any person or organization without
the written permission of Government of Uttarakhand.

7. Bid Security

7.1 Proposals would need to be accompanied by a Bid Security for an amount of
Rs 2.00 Lakhs only (Rs Two Lakhs only) in the form of a bank draft drawn on
any Scheduled Bank.

7.2 The Bid Security shall be kept valid for a period of 90 days from due date of
the RFP and would be required to be extended if so required by Government
of Uttarakhand.

7.3 The Bid Security shall be returned to unsuccessful Bidders within a period of
thirty (30) days from the date of announcement of the Successful Bidder.
The Bid Security submitted by the Successful Bidder shall be released upon
furnishing of the Performance Security in the form and manner to be
stipulated in the Draft Concession Agreement.


April 21, 2009


7.4 The Bid Security shall be forfeited in the following cases:

(a) If the Bidder withdraws its Proposal during the interval between the
Proposal Due Date and expiration of the Proposal Validity Period and

(b) If the Successful Bidder fails to provide the Performance Security
within the stipulated time or any extension thereof provided by

8. Performance Security

8.1 The Successful Bidder shall furnish Performance Security equivalent to 30% of
the value of the contract by way of an irrevocable Bank Guarantee issued by
a scheduled nationalised bank located in India in favour of Government of
Uttarakhand, as required under the Concession Agreement.

8.2 The Performance Security shall be in the form of an irrevocable Bank
Guarantee in favour of Government of Uttarakhand, as per the format set out
in Attachment G. The Performance Security would be valid for the entire
project term till the acceptance of report(s) by the Expert Committee
appointed by Government of Uttarakhand.

8.3 The Performance guarantee shall be forfeited and en-cashed in the following
cases:

(a) If the successful bidder withdraws from the assignment midway during
the project term

(b) If the progress of work is found out to be inadequate midway through
the project timeline (i.e. by 8th week), indicating non achievement of
target within the stipulated time.

(c) Any other act or acts of the successful bidder which renders the
assignment incomplete and Government of Uttarakhand establishes
sufficient reasons to forfeit the performance guarantee.


April 21, 2009


9. Pre Bid Conference

9.1 To clarify and discuss issues with respect to the assignment and the RFP
Document, Government of Uttarakhand may hold Pre-bid conference.

9.2 Prior to the Pre-Proposal meeting/s, the Bidders may submit a list of
queries and propose deviations, if any, to the Project requirements and/or
the Draft Concession Agreement. Bidders must formulate their responses
and forward the same to Government of Uttarakhand at least seven (7) days
prior to the meeting. Government of Uttarakhand may amend the RFP
Document based on inputs provided by Bidders that may be considered
acceptable in its sole discretion.

9.3 Bidders may note that Government of Uttarakhand will not entertain any
deviations to the RFP Document at the time of submission of the Proposal or
thereafter. The Proposal to be submitted by the Bidders will be
unconditional and unqualified and the Bidders would be deemed to have
accepted the terms and conditions of the RFP Document with all its
contents including the Draft Concession Agreement. Any conditional
Proposal shall be regarded as non-responsive and would be liable for
rejection.

9.4 Government of Uttarakhand will endeavour to hold the meeting as per
Schedule of Bidding Process. The details of the meeting will be separately
communicated to the Bidders.

9.5 Attendance of the bidders at the Pre-Proposal meeting is not mandatory.
However, subsequent to the meeting, Government of Uttarakhand may not
respond to queries from any bidder who has not attended the Pre bid
conference

9.6 All correspondence / enquiries should be submitted to the following in
writing by post / courier:

The Director of Treasury and Finance Services and State Internal Auditor
23 Laxmi Road,
Dalanwala,
Dehradun – 248 001.


April 21, 2009


9.7 No interpretation, revision, or other communication from Government of
Uttarakhand regarding this solicitation is valid unless the same is given in
writing. Government of Uttarakhand may choose to send to all Bidders,
written copies of responses of Government of Uttarakhand, including a
description of the enquiry but without identifying its source to all the
bidders.

10. Payment Terms and Schedule

A pre-receipted bill in triplicate in the name of The Director Treasury and Finance
Services and State Internal Auditor, 23 Laxmi Road, Dalanwala, Dehradun – 248001
shall be submitted duly certified by the Expert Committee as nominated by
finance department as per the following schedule:

S No Activity % amount to be released
1 On submission of draft report 30
2 On completion of Dry Run 20
3 On Submission of Training Manual 10
4 On Submission of Structure 10
5 On Submission of all final reports 10
6 On Acceptance by Expert Committee 20

11. General Conditions

a) The Government of Uttarakhand may invite the applicants to present their
“Approach and Methodology” in a “power point presentation” format to the Bid
Evaluation Committee, after the receipt of their responses by the stipulated
date, to evaluate the proposal.

b) The applicant shall bear all costs associated with the preparation and
submission of its proposal and Government of Uttarakhand will in no case be
responsible or liable for those costs, regardless of the conduct or outcome of
the bidding process.

c) The applicant is expected to examine all instructions, forms, terms and
conditions in the RFP document. Failure to furnish all information required by
the RFP or submission of an application not substantially responsive to the RFP
documents in every respect will be at the applicant’s risk and may result in the
rejection of his application.

d) The application, as well as all correspondence and documents relating to the
application exchanged by the applicant and Government of Uttarakhand shall
be written in English language.

April 21, 2009


e) The contents of the application shall be typed or written in indelible ink and
shall be signed by the person duly authorized in all pages of the application.

f) The applicant shall submit a General Power Of Attorney issued by a Resolution
passed by the Board of Directors of the Applicant duly authenticated by putting
affixing a Company Seal in favor of the Authorized Signatory of the Application
indicating that the specified person has the authority to sign the application,
and confirming that the application is binding upon the applicant during the
full period of its validity.

g) The Bidder shall seal the Technical Proposal and the Financial Proposal in
separate envelopes, duly marking the envelopes as “TECHNICAL PROPOSAL”
and “FINANCIAL PROPOSAL”. These envelopes shall then be sealed in an outer
envelope.

h) Two copies of the application should be submitted (one original and one copy).
The envelope shall be sealed and superscribed as “Application for preparation
of Internal Audit Manuals for Government of Uttarakhand”. If any envelope is
not sealed and marked as specified above, Government of Uttarakhand will not
assume any responsibility for the application misplacement or loss of
documents.


April 21, 2009


i) The following documents should be submitted as part of the response to this
RFP

Technical Proposal

i. Letter of Application, duly completed and signed by the Applicant
(as per Attachment Form A)
ii. General Information about the Applicant (as per Attachment Form
B) with Company profile, Memorandum & Articles of Association/
partnership deed, etc.
iii. CVs of the proposed team as per attachment form C
iv. Description of Approach, Methodology and Work Plan for
Performing the Assignment (Attachment D)
v. Bid Security as per attachment F
vi. All the information required as per Para (4).
vii. Cost of RFP Document in the form of a bank draft in favor of “The
Director of Treasury and Finance Services and State Internal
Auditor” of Rs 1,000.00 (Rs One Thousand Only) or Copy of the
Receipt in case the hard copy of the RFP has been purchased from
the Office.

Financial Proposal

i. The Financial Proposal as per Attachment E

j) Applications must be submitted at the following address and not later than the
15:00 hours IST on 18th May 2009.

23 Laxmi Road,
Dalanwala,

k) Government of Uttarakhand may, at its discretion, extend this deadline for
submission of applications by amending the RFP documents, in which case all
rights and obligations of Government of Uttarakhand and applicants will
thereafter be subject to the deadline as extended.


April 21, 2009


l) If the response to the RFP is not delivered within the deadline specified in
above, the same shall be declared late and shall not be accepted.

m) Government of Uttarakhand reserves the right to accept or reject any
application, and to annul the bidding process and reject all applications, at any
time during the bidding process, without thereby incurring any liability to the
affected applicant(s) or any obligation to inform the affected applicant(s) of
the grounds for Government of Uttarakhand’s action.

n) Any effort by the applicant to influence Government of Uttarakhand in its
decisions or evaluation of application may result in the rejection of its
application.

o) The RFP document can be downloaded from http://gov.ua.nic.in/finance. The
cost of RFP document is Rs 1,150.00 (Rs One Thousand One hundred fifty Only),
inclusive of VAT. The proposals must accompany with cost of RFP document in
the form of a bank draft in favor of “The Director of Treasury and Finance
Services and State Internal Auditor” of Rs 1,150.00 (Rs One Thousand Only) –
Para 12(i - vii). The bidders may also obtain a hard copy of the RFP from the
office of Director of Treasury and Finance Services and State Internal Auditor.
The bidders purchasing the hard copy of the RFP must attach the copy of
Receipt along with the proposal.

p) Proposals received without the cost of RFP document will be summarily
rejected.


April 21, 2009


Attachment Form A

Letter of Application
{To be printed on the Letterhead of the Applicant, including full postal address,
telephone, faxes and e-mail address}

Date:

23 Laxmi Road, Dalanwala,

Subject: Preparation of Internal Audit Manuals

Sir,

Having examined the RFP documents and your requirements, the receipt of which is
hereby acknowledged, we, the undersigned, offer to accept the proposal in full
conformity with the said RFP documents.

We are enclosing herewith other requisite information in forms and attachments as
specified in the EOI document.

We declare that the information stated above and enclosed attachments is complete
and absolutely correct and any error or omission therein, accidental or otherwise, will
be sufficient for the Government of Uttarakhand to reject our application.

We understand that you are not bound to accept this or any application you may
receive.

Dated this _____ day of ___________ 2009

(Name & Signature of Authorised Signatory)______________________ In the capacity
of _____________________ (position) duly authorized to sign this application for and
behalf of _____________________________ (name of applicant)
_____________________________________ (Address)


April 21, 2009


Attachment Form B

General Information about the Applicant

1. Full Name of the Applicant firm: (in Block Letters)

2. Applicant’s Constitution (Public Limited Co./ Pvt. Ltd. Co.)

3. Applicant’s Registered Office and Place of Business

4. Applicant’s Telephone No. Fax No. E-mail address and web site

5. Name & Address of Directors of the Company (Provide names, office &
residence addresses, Telephone no.s, fax no.s, e-mail, profession / Business
engaged in etc.

6. Company profile giving details of current activities, background of promoters
and management structure including evidence of incorporation, MOA and AOA/
partnership deed.

7. Please provide detail of assignments completed on preparing manuals/systems
for management accounting, internal auditing etc. Please provide details
separately for assignments of government departments, PSUs, International
bodies and funding agencies.


April 21, 2009


Attachment Form C
List of Key CVs
The List of CVs to be provided as part of the Bid
• Principal Consultant/s (at least 2)
– Should have at least 10 years of experience of leading management consulting
projects
– Should have extensive experience of working with Central/State Governments
and PSUs
– Should have led assignments in areas such as Management Accounting,
Auditing, Systems design and implementation, Project/Programme Management
• Project Manager/s (at least 2)
– Should have at least 6 years of experience of leading leading management
consulting projects
– Should be a Chartered Accountant/CPA
– Should have extensive experience of working with Central/State Governments
and PSUs
– Should have led assignments in areas such as Management Accounting,
Auditing, Systems design and implementation, Project/Programme Management
• Team Members ( at least 4)
– Should have at least 4 years of experience in the areas of Management
Accounting, Auditing, Systems design and implementation, Project/Programme
Management
Consultant Principal Project Manager Team Member

Qualifications Essential: Chartered Accountant/CPA. Desirable: MBA

Work Experience 10 years of which the 6 years of which the 4 years on similar
last 2 years should be last 2 years should projects.
in the capacity of be in the capacity of
Principal Consultant Project Manager

Number of similar Five Three Two
Projects handled
Of which one in the Of which one in the
capacity of Principal capacity of Project
Consultant Manager


April 21, 2009


Attachment Form D

Description of Approach, Methodology and Work Plan for Performing
the Assignment

Approach, methodology and work plan are key components of the Technical Proposal.
You are suggested to present your Technical Proposal in the following topics.
a) Understanding the Scope
b) Detailed approach and methodology
c) Work Plan and Staffing Schedule
d) Plan for Dry run
e) Contents and coverage in the manuals

Understanding the Scope: In this chapter you should explain your understanding
of the objectives of the assignment.

Detailed approach and methodology: In this chapter you should explain the
approach to the services, methodology for carrying out the activities and obtaining
the expected output, and the degree of detail of such output

Work Plan: In this chapter you should propose the main activities of the
assignment, their content and duration, phasing and interrelations, milestones
(including interim approvals by the Client), and delivery dates of the reports. The
proposed work plan should be consistent with the approach and methodology,
showing understanding of the TOR and ability to translate them into a feasible
working plan. A list of the final documents, including reports and formats to be
delivered as final output, should be included.

Plan for Dry Run: In this chapter you should explain the dry runs to be conducted
and corrections/ bottlenecks to be captured for incorporation in the final reports.

Content and Coverage in the manuals: In this chapter you should explain the
topics that would be covered in the final outputs and feasibility of using the same
during actual audits.


April 21, 2009


Attachment E

Format for Financial Proposal

23 Laxmi Road, Dalanwala,

Subject: Financial Proposal for preparation of Internal Audit Manual

Sir,

We are pleased to submit our financial proposal for the subject assignment

Item Task Person months Rate per person Total
months (Rs)

Total = Rs ________________

Out-of-pocket expenses = Rs ________________

Service Tax = Rs ________________

Grand Total = Rs ________________


April 21, 2009


CANCELLED
Attachment F
Format for Bid Security
(To be issued by a Scheduled Bank)

B.G. No. __________________________________ dated __________.

This Deed of Guarantee executed at ——————— by ______________ (Name of Bank)
having its Head/Registered office at ______________ ______ (hereinafter referred to
as “the Guarantor”) which expression shall unless it be repugnant to the subject or
context thereof include its, successors and assigns;
In favour of
The Director of Treasury and Finance Services (hereinafter called “DoT&FS”), having
its head office at 23 Laxmi Road, Dalanwala, Dehradun – 248 001, which expression
shall unless it be repugnant to the subject or context thereof include its, successors
and assigns;
WHEREAS
M/s. ______________________ a Company registered under provisions of
_________Act, ____(specify the name of the Act under which the Business Entity is
registered) having its registered office at ____________ (hereinafter called “the
Bidder”) which expression shall unless it be repugnant to the subject or context
thereof include its/their executors administrators, successors and assigns, has/have
bid for designing and developing Internal Audit manual, Training Manual and
organizational structure of Internal Audit function.

A. In terms of Clause 7 of the Request for Proposal Document dated ———
issued in respect of the Project (hereinafter referred to as “RFP
Document”) the Bidder is required to furnish to DoT&FS an unconditional
and irrevocable Bank Guarantee for an amount of Rs 2.00 Lakhs (Rs Two
Lakhs Only)

B. The Guarantor has at the request of the Bidder and for valid consideration
agreed to provide such Bank Guarantee being these presents:
NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS:

a) The Guarantor, as primary obligor shall, without demur, pay to DOT&FS an amount
not exceeding Rs 2.00 Lakhs (Rs Two Lakhs Only), within 5 days of receipt of a
written demand from DOTS&FS calling upon the Guarantor to pay the said amount
and stating that the Bid Security provided by the Bidder has been forfeited in
terms of Clause 7.4 of the RFP Document.


April 21, 2009


b) Any such demand made on the Guarantor by DOT&FS shall be conclusive and
absolute as regards the forfeiture of Bid Security and the amount due and payable
by the Guarantor under this Guarantee.

c) The above payment shall be made without any reference to the Bidder or any
other person and irrespective of whether the claim of DOT&FS is disputed by the
Bidder or not.

d) This Guarantee shall be irrevocable and remain in full force for a period of ————
——— months from (date) ________ or for such extended period as may be
mutually agreed between DOT&FS and the Bidder and shall continue to be
enforceable till all amounts under this Guarantee are paid.

e) The Guarantee shall not be affected by any change in the constitution or winding
up of the Bidder/the Guarantor or any absorption, merger or amalgamation of the
Bidder/the Guarantor with any other person.

f) In order to give full effect to this Guarantee, DOT&FS shall be entitled to treat the
Guarantor as the principal debtor. The obligations of the Guarantor shall not be
affected by any variations in the terms and conditions of the RFP Document or
other documents or by extension of time of performance of any obligations
granted to the Bidder or postponement/non exercise/delayed exercise of any of
its rights by DOT&FS against the Bidder or any indulgence shown by DOT&FS to the
Bidder. and. the Guarantor shall not be relieved from its obligations under this
Bank Guarantee on account of any such variation, extension, postponement, non
exercise, delayed exercise or omission on the part of DOT&FS or any indulgence by
DOT&FS to the Bidder to give such matter or thing whatsoever which under the
law relating to sureties would but for this provision have effect of so relieving the
Guarantor.

g) The Guarantor has power to issue this Guarantee and discharge the obligations
contemplated herein, the undersigned is duly authorised to execute this
Guarantee pursuant to the power granted under ——————.

IN WITNESS WHEREOF THE GUARANTOR HAS SET ITS HANDS HEREUNTO ON THE
DAY, MONTH AND YEAR FIRST HEREINABOVE WRITTEN.

Signed and Delivered by ——————-
Bank by the hand of Mr——————-
its ——————— and authorised official.


April 21, 2009


Attachment G
Format for Performance Bank Gaurantee
(To be issued by a Scheduled Bank)

B.G. No. __________________________________ dated __________.

This Deed of Guarantee executed at ——————— by ______________ (Name of Bank)
having its Head/Registered office at ______________ ______ (hereinafter referred to
as “the Guarantor”) which expression shall unless it be repugnant to the subject or
context thereof include its, successors and assigns;
In favour of
The Director of Treasury and Finance Services (hereinafter called “DoT&FS”), having
its head office at 23 Laxmi Road, Dalanwala, Dehradun – 248 001, which expression
shall unless it be repugnant to the subject or context thereof include its, successors
and assigns;
WHEREAS
M/s. ______________________ a Company registered under provisions of
_________Act, ____(specify the name of the Act under which the Business Entity is
registered) having its registered office at ____________ (hereinafter called “the
Bidder”) which expression shall unless it be repugnant to the subject or context
thereof include its/their executors administrators, successors and assigns, has/have
bid for designing and developing Internal Audit manual, Training Manual and
organizational structure of Internal Audit function.

C. In terms of Clause 8 of the Request for Proposal Document dated ———
issued in respect of the Project (hereinafter referred to as “RFP
Document”) the Bidder is required to furnish to DoT&FS an unconditional
and irrevocable Bank Guarantee for an amount of Rs _______Lakhs (Rs
_____ Lakhs Only)

D. The Guarantor has at the request of the Bidder and for valid consideration
agreed to provide such Bank Guarantee being these presents:

NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS:

h) The Guarantor, as primary obligor shall, without demur, pay to DOT&FS an amount
not exceeding Rs _____ Lakhs (Rs _____ Lakhs Only), within 5 days of receipt of a
written demand from DOTS&FS calling upon the Guarantor to pay the said amount
and stating that the Bid Security provided by the Bidder has been forfeited in
terms of Clause 8.3 of the RFP Document.


April 21, 2009


i) Any such demand made on the Guarantor by DOT&FS shall be conclusive and
absolute as regards the forfeiture of Bid Security and the amount due and payable
by the Guarantor under this Guarantee.

j) The above payment shall be made without any reference to the Bidder or any
other person and irrespective of whether the claim of DOT&FS is disputed by the
Bidder or not.

k) This Guarantee shall be irrevocable and remain in full force for a period of ————
——— months from (date) ________ or for such extended period as may be
mutually agreed between DOT&FS and the Bidder and shall continue to be
enforceable till all amounts under this Guarantee are paid.

l) The Guarantee shall not be affected by any change in the constitution or winding
up of the Bidder/the Guarantor or any absorption, merger or amalgamation of the
Bidder/the Guarantor with any other person.

m) In order to give full effect to this Guarantee, DOT&FS shall be entitled to treat the
Guarantor as the principal debtor. The obligations of the Guarantor shall not be
affected by any variations in the terms and conditions of the RFP Document or
other documents or by extension of time of performance of any obligations
granted to the Bidder or postponement/non exercise/delayed exercise of any of
its rights by DOT&FS against the Bidder or any indulgence shown by DOT&FS to the
Bidder. and. the Guarantor shall not be relieved from its obligations under this
Bank Guarantee on account of any such variation, extension, postponement, non
exercise, delayed exercise or omission on the part of DOT&FS or any indulgence by
DOT&FS to the Bidder to give such matter or thing whatsoever which under the
law relating to sureties would but for this provision have effect of so relieving the
Guarantor.

n) The Guarantor has power to issue this Guarantee and discharge the obligations
contemplated herein, the undersigned is duly authorised to execute this
Guarantee pursuant to the power granted under ——————.

IN WITNESS WHEREOF THE GUARANTOR HAS SET ITS HANDS HEREUNTO ON THE
DAY, MONTH AND YEAR FIRST HEREINABOVE WRITTEN.

Signed and Delivered by ——————-
Bank by the hand of Mr——————-
its ——————— and authorised official.


April 21, 2009

Internal audit

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