Punjab Power Development Company Limited Energy Department, Government of the Punjab

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1 Punjab Power Development Company Limited Energy Department, Government of the Punjab APPOINTMENT OF STATUTORY AUDITORS UNDER COMPANIES ORDINANCE,1984 Punjab Power Development Company Limited is desirous to hire services of a top rated Chartered Accountant Firm to conduct its Statutory Audit for the three financial years from June 30, 2017 to June 30, 2019 along with the report on statement of compliance with the Public Sector Companies (Corporate Governance) Rules TORs, Criteria for Technical / Financial evaluation and all accompanying details are available in the Bidding Documents which have been uploaded on the websites of PPDCL and Punjab Procurement Regulatory Authority. Firm will be awarded points based on the evaluation criteria mentioned in the TORs. The Procuring Agency reserves the right to reject all proposals at any time prior to award of Assignment. Interested Chartered Accountant Firms qualifying to take up the audit under the Eligibility Criteria defined in the Companies Ordinance, 1984 may apply on or before February 22, 2018 till 11:00 am by sending their Technical and Financial Proposals in two separate envelopes either by hand or courier in one sealed envelopes clearly marked Proposal for Statutory Audit at the following address. Technical Bids will be opened at 11:30 am on the same date. Chief Executive Officer Punjab Power Development Company Limited 3 rd Floor Mega Tower 63-B Main Boulevard Gulberg-II, Lahore, Telephone: Web address: 1

2 PUNJAB POWER DEVELOPMENT COMPANY LIMITED TERMS OF REFERENCE APPOINTMENT OF STATUTORY AUDITORS UNDER COMPANIES ORDINANCE, 1984 Office: 3 rd FLOOR MEGA TOWER 63-B MAIN BOULEVARD GULBERG-II LAHORE Phone:

3 1. Background: Punjab Power Development Company Limited (PPDCL) was incorporated as a Public Company, for development and maintenance of Power projects on fast track basis in public sector, which is registered with Securities & Exchange Commission of Pakistan (SECP), work under the supervision of Energy Department, Government of the Punjab. 2. Scope: The Company intends to appoint its Statutory Auditors to audit the Financial Statements of the Company for the three financial years ending June 30, 2017, June 30, 2018 and June 30, 2019 as per the scope defined in the Companies Ordinance, 1984 and International Standard on Auditing (ISA) 200. The Audit Firm will also be required to issue report on statement of compliance with the Public Sector Companies (Corporate Governance) Rules The cost of the audit services has been estimated at Rs.1 (one) million per year. 3. Covering Letters: Covering Letter (if any) must be addressed to Chief Executive Officer, PPDCL, 63-B Mega Tower Main Boulevard Gulberg-II Lahore. 4. Queries: For any queries or additional information, please contact Company Secretary, PPDCL Criteria of Evaluation: The Company will use Quality and Cost Based Selection Method under Single Stage Two Envelope Methods of selection of consultant under Punjab Procurement Rules, Evaluation Criteria for Technical and Financial Evaluation are enclosed. Scores will be allocated based on evidence available in the proposal only. The Audit Assignment will be awarded to the firm with the highest total score based on the following weight ratios: 80% for Technical Score 20% for Financial Score 6. Opening of Proposals: All Proposals must be delivered to the Company s Office on or before 11:00 am on February 22, Technical Proposals will be opened at 11:30 am on the same day in the Board Room of the Punjab Power Development Company Limited, 63-B Mega Tower Main Boulevard Gulberg-II Lahore. For opening of Financial Proposals date, time and venue will be communicated separately. 3

4 NOTE: Firms scoring less than 65% score in Technical Evaluation will be considered non-responsive and Financial Proposals will be returned un-opened. 7. Technical and Financial Evaluation (A) Initial Screening: The following documents/ certificates are the pre-requisite and may be used for initial screening. The Audit Firm will go in the next stage if it fulfills all the requirement of initial screening which are as under: 1. The firm must be A ranking as per State Bank of Pakistan. 2. The firm must have affiliation with one of the global audit firms. 3. The firm must provide the declaration on stamp paper regarding non-black listing / delisting. 4. The firm must have the Satisfactory QCR Rating of ICAP. 5. Firm must have the taxpayer Registration Certificate. 6. Firm must have the partnership Registration Certificate. 7. The Firm must comply with the ICAP by-laws. (B) Technical Evaluation: The firm cleared from initial screening will be evaluated as per following criteria: 1. Total Number of Partners in Audit Department (Local / Pakistan Only) 2. Number of ICAP qualified Chartered Accountants employed by the firm in Audit Department only other than partners. (Local / Pakistan only) 3. Number of Staff in Audit Department 4. Experience of Conducting External Audits of the Govt. / Semi Govt. Organization in Pakistan. (No. of organizations) in previous five years only. 5. Experience of Conducting External Audits of Energy / Power Sector Organization in Pakistan (No. of organization) in previous five years only. 6. Number of offices in Pakistan Minimum score for competing in the next stage is 65 %. The Financial Proposal of only that Audit Firm will be opened which secured 65% or more in the Technical Evaluation. 1. Number of Partners Total Marks Range of Partners Marks At least 5 Local (Pakistan) Partners (List of Partners attached) 2. Number of ICAP Qualified Chartered Accountants other than Partners At least 10 (Local / Pakistan) (List attached) and above 20 Total Marks Range of Staff Marks & above Number of Audit Staff Total Marks Range of Staff Marks 4

5 At least 50 Staff (Local / Pakistan) (List of Audit Staff attached) & above Govt. / Semi Govt. Experience Total Marks No. of Organizations Marks Experience of at least 5 Govt. / Semi Govt. Organization s in last 5-years & above Power Sector Experience Total Marks No. of Organizations Marks Experience of at least 5 Power Sector Clients in last 5-years & above Number of Offices in Pakistan Total Marks No. of Offices Marks At least 2 offices in Pakistan & above 10 (C) Financial Evaluation: Financial Proposals of only Technically Qualified Audit Firm will be opened. The Audit Firm getting maximum marks on weight age (80% for technical and 20% for financial) will be selected as Auditors. The formula for determining the Financial Score is the following: Financial Score (20) = Lowest Quoted Financial Bid / Bid under Evaluation x Total Financial Score (20) The weights given to the Technical (T) and Financial Proposals (F) are: T = 0.8 and F = Type of Contract The Company (PPDCL) will enter into a lump sum contract with the successful bidder. The contract will be for the audit of financial statements for the year ended 30 June 2017 which will be extendable upon completion of the audit for the first year, up to three years 8. FORM OF BID AND THE BIDDING PROCESS Bids will be selected in accordance with the Punjab Procurement Rules (PPRA) 2014, as a Single Stage Two Envelope procedure. The bidding process will be as under: 5

6 9.1. The bid shall comprise a single package containing two separate envelopes. The envelopes shall be marked as TECHNICAL PROPOSAL and FINANCIAL PROPOSAL in bold and legible letters; 9.2. The envelope No.1 should contain the complete Technical Bid and undertaking for technical proposal submission. Annex-B 9.3. The envelope No. 2 will contain only the financial bid Both the above mentioned envelopes should be put in one large envelope, super scribed This envelope contains two duly sealed envelopes containing Tender Document and the Price Bid for providing External Audit Services in two separate duly sealed envelopes clearly marked so The bidder must quote his price as per format Annex C. The rate(s) quoted should be inclusive of all kind of taxes and must be quoted in figure as well as in words. Out of pocket expenses for the assignment shall be quoted separately In the first stage, only the envelope marked TECHNICAL PROPOSAL shall be opened and the envelope marked as FINANCIAL PROPOSAL shall be retained without being opened; 9.7. The technical proposals of all the bidders shall be evaluated. The proposals which meet all the technical eligibility criteria laid down in this document shall be accepted for the second stage During technical evaluation no amendments in the technical proposal shall be permitted; 9.9. The financial proposals of selected bidders shall be opened publicly at a time, date and venue announced and communicated to the bidders in advance. The financial proposals of the rejected bidders shall be returned un opened; Both the proposals will be evaluated according to the evaluation criteria and the bidder scoring highest points shall be declared as successful and a written Contract Offer will be made to the successful bidder after a minimum of 10 working days of the evaluation of bids The service provider will also sign an undertaking with the PPDCL in which the completion of work will be ensured as per Annex A. 6

7 CERTIFICATE Proposal duly signed must be furnished along with the following certificate; Annex A I. I/We hereby confirm to have read carefully all the terms & conditions of your Request for Proposal, due for opening on for provision of External Audit services of PPDCL for financial year ended June 30, 2017 and for the next two financial years ending June 30, 2018 and June 30, In addition to the conditions we also agree to abide by all the special instructions mentioned in tender document. We also hereby categorically confirm that we are fully capable to provide services of external auditors as laid down in the terms of reference. Signature: Name & Address of Tenderer Designation & ID Card No. NTN GST No. Date: Official Seal: II. WITNESS Signature: Designation & ID Card No. III. WITNESS Signature: Designation & ID Card No. 7

8 TECHNICAL PROPOSAL SUBMISSION FORM To Chief Executive Officer, Punjab Power Development Company Limited, Lahore. Annex B Dear Sir, We, the undersigned, offer to provide the External Audit Services in accordance with your Request for Proposal dated we are hereby submitting our Proposal, which includes this Technical Proposal, and a Financial Proposal sealed under a separate envelope. We hereby declare that all the information and statements made in this Proposal are true and accept that any misinterpretation contained in it may lead to our disqualification. If negotiations are held during the period of validity of the Proposal, i.e., we undertake to negotiate on the basis of the proposed staff/facilities. Our Proposal is binding upon us and subject to the modifications resulting from Agreement negotiations. We undertake, if our Proposal is accepted, to initiate the required services not later than the date indicated in RFP. We understand you are not bound to accept any Proposal you receive. Yours sincerely, Authorized Signature: Name and Title of Signatory: Name of Firm: Address: 8

9 FINANCIAL PROPOSAL Annex-C Sr. No Particulars Annual Amount (Rs.) 1 External Audit Fee 2 Fee for Statement of Compliance with Corporate Governance Rules Out of Pocket Expenses 4 Total Fee TOTAL IN WORDS Note: Quoted Rate must be inclusive of all kind of taxes and quoted in figure as well as in words. Moreover, the quoted rate for the next financial years can be increased up to maximum of 15% of the quoted price inclusive of taxes. Signature of the Bidder with seal Address: 9

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