No. 2-1/2013-14/Cost consultant
Date: 28/04/2015
Sub:
Invitation for ‘Expression of Interest for Appointment of the Costing Firm for preparation of
Cost Accounting Records under the Companies Act 2013 and Accounting Separation Reports
under TRAI Regulations for the financial year 2014-15 & 2015-16.
This is regarding appointment of Cost Consultant for assisting MTNL in preparing cost records as per
“Cost Accounting Records (Telecommunication) Rules 2011” under section 148 of the Companies Act
2013 and preparing Accounting Separation Reports as per the “Reporting system on Accounting
Separation Regulations 2012” issued by the TRAI. The last date for filing of cost audit report with
annexure and compliance report to the Central Government and for filing of ASR reports to TRAI is 30th
September every year. Hence, the proposed term of the appointment of the firm is up to 31.10.2016 or
filing of cost audit report and ASR of 2014-15 & 2015-16 which will be valid till the filing for 2015-16 is
completed or 31.10.2016 whichever is later. The firm appointed for this purpose will be required to
depute adequate manpower in our offices at Delhi, Mumbai and corporate office.
1). Eligibility conditions for appointment of cost consultant firm:
Applications for appointment as consultant firm in form of “Expression of Interest(EOI)”, as consultant
for the financial year 2014-15 & 2015-16, are hereby invited from cost accounting firms who meet the
minimum following criteria :
(a) The Cost accounting firms should have minimum experience of 5 years from the formation of
the firms and shall be duly registered with ICWAI Institute and in support of experience the
copies of appointments as auditors or consultants for audits or any such specific assignments for
5 years.
(b) The firm should be based at New Delhi or Mumbai based only.
(c) The firms should have a minimum experience of 1(one) year of compilations of cost Accounting
Records and Compliance or compilation of Accounting Separation Report (ASR) for any telecom
service licensee/telecom company.
(d) The working/ present auditors of MTNL are precluded from being considered and hence are not
eligible to apply. The declaration that the firm is not notified for any unwarranted or misleading
reporting or not in receipt of any adverse notice against it either by the respective institute of
accountants or by the Ministry of Corporate affairs etc. or CAG has to be submitted in the E.O.I.
2) Terms & Conditions for appointment
The scope of the work required in maintenance of Cost Accounting Records and Accounting
Separation reports covering all locations of MTNL i.e. Delhi and Mumbai, comprising of following
phases.
(a) To comply fully with Cost Accounting Records (Telecommunication) Rules, 2011 further
amended by cost Accounting Records (Telecommunication) Amendment Rules, 2012 for MTNL
as a whole.
(b) To comply maintenance of all the relevant records, books and register in compliance with
section 148 of the companies Act 2013.
(c) To prepare all the Proforma’s (i.e A to H) as per the requirement of Cost Accounting Records
(Telecommunication) Rules, 2011 for MTNL as a whole and Separately for Delhi and Mumbai.
(d) To issue certificate and produce records before the statutory /Branch Auditors that MTNL is
maintaining cost records under the cost Accounting Records (Telecommunication) Rules 2011.
(e) To interact with the cost auditor appointed by MTNL for this purpose directly and get the cost
accounting records duly audited before 30.09.2015 & 31.10.2016.
(f) To comply fully with TRAI regulation as per “Reporting system on accounting separation
regulation 2012.
(g) To prepare Accounting Separation Reports (ASR) of MTNL as a whole and separately for Delhi
and Mumbai consisting of Proforma ‘A to J’ every accounting year based on Historical cost
accounting for all the services specified in schedule I to the regulations and every second
accounting year based on replacement cost Accounting (RCA).The report shall be submitted in
hard copy and in soft copy in MS Excel format along with its formulae and linkage.
(h) To prepare the cost accounting manual of MTNL containing description of accounting policies,
principles, methodologies and procedures for allocation and apportionment of revenue, cost,
assets and liabilities and the basis of cost allocation and apportionment employed. The manual
should be prepared in accordance with Cost Accounting Standards and Generally Accepted Cost
Accounting Principles as issued by ICWAI and also in accordance with Telecommunications rules
2011 and TRAI ASR Regulation 2012.
(i) The Mandatory Cost Accounting Standards and Generally Accepted Cost Accounting Principles
as per ICWAI shall be applied for the preparation of Cost Records and ASR reports.
(j) To audit the Accounting separation Reports and submit the same to TRAI for the year 2014-15 &
2015-16 .The firm will be responsible for liaison with TRAI for acceptance of the said reports and
providing the answer for any query/objection raised by TRAI in regard to reports prepared and
submitted to TRAI from time to time.
(k) To finalize consolidated cost accounting records for MTNL as a whole and for Delhi and Mumbai
separately for the year 2014-15 & 2015-16.
(l) The appointment is extendable for further one years based on the completion or work
satisfactory on the same terms & conditions.
(m) The Cost Accountant in practice / Cost Accountant Firm must not sub-contract the work.
(n) Cost Accountant in practice / Cost Accountant Firm will work in strict confidence and will
ensure that the information in respect of the operation of the Area/Unit is dealt in strict
confidence and secrecy. A Certificate towards maintaining confidentiality to be provided by
the Cost Auditor before commencement of Audit.
(o) No partner of the Cost Accountant in practice / Cost Accountant Firm is related to Managing
Director of company as stipulated under Act,2013,
(p) Neither the Cost Accountant in practice / Cost Accountant Firm nor its partner or Associates
have any interest in the business of Company.
(q) The Cost Accountant in practice / Cost Accountant Firm will be required to issue Certificate
of Independence.
(r) The Cost Accountant in practice / Cost Accountant Firm will be debarred from getting, in
future, the Cost audit of MTNL:
(i)
If the firm obtains the appointment on the basis of false information/false
statement.
(ii)
If the Firm does not take up audit in terms of appointment letter.
(iii)
If the Firm does not submit the audit report, complete in all respect in terms of
Appointment.
(iv)
If the Firm violates any of the stipulations under clause as above.
3) Penalities: If default is made by the cost consultant in complying with the provisions of the rule or
regulations notified and prescribed by MCA or by applicable sections of company’s acts 2013, security
deposited amount will be forfeited.
4) Submission of “EOI”
i) Furnishing of EMD: A notional amount of Rs. 5600/- in the form of DD/Pay order has to be
submitted at the time of submitting bids in the shape of earnest money deposit in the name of
MTNL.
ii) The selected firm/bidder has to furnish security deposit @5% of the value of the contract which
has to be deposit the same to AO (Cash) Corporate office within 5 days of the letter of intent issued
by this office on selection.
iii)MTNL reserves the right to accept or reject the EOI , and to annul the process and reject all EOIs
at any time without assigning any reason what so ever and without thereby incurring any liability to
the affected firm/firms.
iv)You are required to submit documentary evidence regarding experience and the existence of the
firm along with the proposal. The financial proposal should be put in a separate envelope but to be
submitted along with the technical proposal at the same time. Clarifications, if any, required
regarding the above scope of work or any related issue may be asked for five days in advance prior
to the date of opening i.e. by 11.05.2015 and will be clarified immediately through E-mail at least
two days prior to the date of opening i.e. by 11.05.2015 through e-mail. You are requested to
furnish the E-mail, Fax No and Telephone no of the person authorized by you to receive the
clarification while asking for clarification. E-mail of the undersigned declared as the nodal officer for
this purpose is also mentioned below.
v) Since the Company is expected to undertake this task for the year 2014-15 & 2015-16 we would
like to invite your proposal in duplicate with two separate envelops marked as original and
duplicate. In both the original & duplicate the financial bid shall be kept separately sealed in an
envelope in the format prescribed and technical bid containing the envelop with EMD and all other
technical and other related documents showing/fulfilling the eligibility criterion and clause by clause
compliance etc. shall be kept. Both technical and financial bids sealed and stamped shall be kept in
separate envelopes marked as original & duplicate as the case may be and the same shall be sent to
reach on or before 11.05.2015 by 15.30 Hrs. containing all the requisite details and documents
relating to firm, partners and experience etc. in technical bid and also indicating the total fees and
the out of pocket expenses, in defined terms for the above assignment and quoting in financial bid
all such figures adding up with an all inclusive price including applicable taxes as a single lump sum
figure as well as in words is to be quoted in the financial bid of the proposal in (Annexure I & II).
The envelops containing bids shall submitted at the following address. The EOI/Bids will be
evaluated based on such all inclusive price only of the technically qualified bidders and the lowest
bidder shall be selected for award of work. Applicable taxes if any should be mentioned clearly in
the all inclusive price in the proposal clearly demarking cenvatable and non cenvatable taxes as the
selection is on the basis of L1 price with all taxes excluding cenvatable taxes.
5)The bids will be opened on the same day at 16.00 hrs at the same address in the presence of the
participants who wish to attend. Only one representative may be sent for participation in the
opening bid process and financial bids of the technically responsive bids shall only be opened after
the technical responsiveness of the bids is finalized after checking of responsiveness of the technical
bids by MTNL tender evaluation team so that the financial bids of technically qualified bids only can
be opened in the presence of the bidders concerned , for which separate intimation shall be sent to
those short listed bidders separately.
Last date and time of submission of sealed bids: 11.05.2015 upto 15.30 hours
The Sr. Manager (Accounts)
Mahanagar Telephone Nigam Ltd.
Room No. 4502 4th Floor
Mahanagar Doorsanchar Sadan
9, CGO Complex, Lodhi Road
New Delhi-110 003
Yours faithfully,
Sr. Manager (Accounts)
Fax No. 011-24325681
Tele No. 24324118
Email: [email protected]
Document Attached:
Annexure-I Financial Bid
Annexure-II Declaration/clause by clause compliance
Annexure-I
Financial Bid for Appointment of Cost Consultant for the year 2014-15&
2015-16
(On Letter Head)
Sl.No Description Fees
Out of
Service Tax Total
Total Cost
of Service
Pocket
(As
(Amt in
(in words)
Expenses applicable ) Rs.)
Excluding
including cenvatable
Service
duties
Tax
(1)
(2)
(3)
(4)
(5)
6(3+4+5)
7(6-5)
Note: - The L-1 bidder will be chosen on the basis of total cost (excluding
cenvatable duties.)
For___________
Cost Accountants
New Delhi
Dated
ANNEXURE-II
EXPRESSION OF INTEREST FOR APPOINTMENT AS COST
CONSULTANT FOR 2014-15 & 2015-16 YEAR
CERTIFICATE
I, --------------------------------------, working as ------------------------------------in this
firm and authorized to issue this certificate certify that:
a) We have gone through the contents of advertisement and related documents
for this EOI and fulfill all the eligibility criteria as per EOI.
b) All relevant documents are enclosed with our EOI.
c) We have understood that it if is found that our firm is not fulfilling any of
the laid down criteria, or relevant details/supporting documents are not
found to be enclosed, we will not be given any opportunity for any
clarifications and our EOI will be evaluated based on available documents in
EOI.
d) We also submit hereby our clause –by-clause compliance by declaring that
all clauses and terms and conditions are agreeable and shall be complied.
Signature of Authorized signatory
Name:………………………….
Designation:…………………..
Date:
(Please affix Rubber Stamp)