The Oriental Insurance Company Ltd.
3rd Floor Internal Audit Department, 4/14 A,
Agarwal House Asaf Ali Road, New Delhi – 110002
Dept: Internal Audit
Date: 10th November, 2016
CA Firms/ Companies New Delhi
Re: Selection of Audit Firm for Conducting Concurrent Audit of Investment Operations
Our Company is a leading Public Sector General Insurance Company in India and we propose to select a Chartered Accountant Audit Firm of repute for conducting Concurrent Audit of Investment Operations of the Company. The Concurrent Audit of Investment Operations is required to be conducted as per instructions and directives issued from time to time by the IRDAI and/or RBI/SEBI or any other statutory authority directives applicable for General Insurance Companies including Statutory Tax Compliance Status etc. in all respect.
The Concurrent Audit is required to be conducted on every working day at the Head Office of the Company. The contract for conducting Concurrent Audit would be valid initially for a period of one year and may be extended by another year subject to maximum of 2 years on appraisal of performance on the same remuneration.
The eligibility criteria decided by the Competent Authority for selection of an Audit Firm are as under:
1. The Chartered Accountants firm shall be a firm, registered with the Institute of Chartered Accountants of India
2. The audit firm should have experience for at least 4 years in conducting Investment Concurrent Audit and reviews of Risk Management System and Process of either Banks or Mutual Funds or Insurance Companies or have. on behalf of IRDAI conducted investment inspection of insurance companies or Companies having Investment Operations of over Rs.1000 Crores.
3. The Internal/Concurrent audit term shall be for the financial year and where the appointment is made during the course of the financial year, it shall be up to the end of that financial year.
4. The Internal/Concurrent Auditor shall be appointed by the Audit Committee of the Insurer’s Board and the Auditor shall directly report to the Audit Committee of the Insurer’s Board. On the day of appointment as an auditor for conducting concurrent audit of
investment, the auditor must not hold more than two audits of internal, concurrent and Risk Management Systems Audit, all taken together. Hence, the audit firm can at the maximum hold not more than three audits (i.e. Investment Risk Management Systems and Process Audit, Internal Audit, Concurrent Audit – all taken together), apart from Statutory audit at any point of time. For this purpose, at the time of appointment, the firm shall submit a declaration to this effect.
6. The audit firm should not have been prohibited/ debarred by any regulating agency including IRDAI. RBI, SEBI, ICAI etc.
7. The Concurrent Auditors appointed for the first time should not have conducted the following assignments for our company during a period of two years immediately preceding the appointment as Concurrent Auditor:
i) Statutory Audit.
ii) Any Internal Audit
iii) Any Concurrent Audit
iv) Any consulting assignment whether or not related to audit functions,
v) Reviews or certification of Investment Risk Management Systems and Process.
8) The internal/Concurrent Auditors shall not be eligible for re-appointment. with the same insurer after serving three consecutive years or three years during the preceding five years.
9) The Audit Firm should have an office in Delhi city.
The selection of the Audit Firm shall be on the basis of above criteria and it is, therefore, requested that a letter of interest in the enclosed format may be sent to the Chief Manager, The Oriental Insurance Company Ltd.. 3rd Floor, Internal Audit Department, 4/14 A. Agarwal House. Asaf All Road, New Delhi – 110 002 by hand only between 11.30 hrs to 15.30 hrs on any working day latest by 30.11.2016_ Please note that no letter of interest shall be accepted through post or by courier service.
After scrutiny of Proforma submitted by Audit Firms, financial offers will be called from the Firms who fulfill the above eligibility criteria. For any query contact may be made with Mr. Devendra Pant, Chief Manager whose phone no. is 011-48638515 or on email i.e. email@example.com.
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