Federal Bank : RFP for External Assurance of BRSR for FY 2023-24

IRMD- Market Risk (E&S Division)

REQUEST FOR PROPOSAL (RFP)
For External Assurance of BRSR for FY 2023-24
Tender Reference Number: RFP / ESG / 01/2023-24
Date of issue of RFP: 19.03.2024
Contents
Section 1: Preface	2
Section 2: About Federal Bank	2
Section 3: Submission and evaluation of Proposals	2
Section 4: Scope of Work	3
Section 5: Deliverables:	3
Section 6: Minimum Eligibility Criteria	3
Section 7: General Terms and Conditions	3
Section 8: Annexure 1	5

The Federal Bank Ltd., Integrated Risk Management Department Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]

IRMD- Market Risk (E&S Division)

Section 1: Preface

1. The purpose of this RFP is to solicit proposal from eligible audit firms to conduct an external assurance of Business Responsibility and Sustainability Reporting (BRSR) for FY 2023-24, (Limited assurance of BRSR core and non-core indicators), The Federal Bank Ltd. (CIN: L65191KL1931PLC000368).
2. The RFP is being uploaded on Federal Bank's website to be responded to by audit firms which satisfy the Minimum Eligibility Criteria (point No.5).
3. The last date for submission of proposal is 24th March 2024.
4. No proposals would be accepted after the above deadline.
5. The Federal Bank reserves the right to accept any proposal or reject all the proposals, without assigning any reasons whatsoever. The Bank's decision in this regard shall be final and binding.

Section 2: About Federal Bank

The Federal Bank Limited is a bank licensed under Banking Regulation Act, 1949 which became a scheduled commercial bank under the second schedule of Reserve Bank of India Act 1934 on July 20, 1970. The bank has 1418 banking outlets and 1960 ATMs/Recyclers spread across different states in India. The equity shares of the Bank are listed on BSE Limited and National Stock Exchange of India Limited (NSE). The Global Depository Receipts (GDRs) issued by the Bank are listed on London Stock Exchange (LSE). The Bank has a paid-up capital of Rs.486.68 Crores as on 31.12.2023. With a Balance sheet size of Rs. 2,96,212.49 Crores, the Bank has a CRAR of 15.02% and a loan book size of Rs. 1,99,185.23 Crores as on 31.12.2023.

Section 3: Submission and evaluation of Proposals

1. The documents to be submitted are:
2. 1. Profile of the Audit Firm (with details of the firm, present and past audit assignments, educational qualification and experience of the partners, areas of specialization, contact details of the firm, audit infrastructure facilities and manpower)
   2. Additional details to be furnished by the audit firm in the format enclosed (Annexure 1). This has to be furnished in the letter head of the firm.

1. The proposals shall be submitted duly signed by the authorized signatory with the seal of the audit firm to the below email address with the title - "RFP for external assurance of (BRSR) for FY 2023- 24 of Federal Bank":[e-mail]
2. For any clarifications regarding RFP, please contact:

Mr Padmanabhan T M

Deputy Vice President

Integrated Risk Management Department

The Federal Bank Limited

Head Office, Aluva, Ernakulam, Kerala

India-683101

[e-mail]

PH: 0484-2634120

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The Federal Bank Ltd., Integrated Risk Management Department

Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]

IRMD- Market Risk (E&S Division)

Section 4: Scope of Work

• Conduct assurance of Business Responsibility and Sustainability Reporting (BRSR) for FY 2023-24, (Limited assurance of BRSR core and non-core indicators)
• Review of BRSR core & non-core indicators with feedback and gap analysis on the major improvement areas indicator wise. This has to be submitted separately, in order to improve the quality of future BRSR reporting of core indicators.
• Develop review protocols on sample-bases; verify data and compliances pertaining to sample locations and offices in accordance with ISAE 3000/SSAE3000/ SAE3410 as assurance criteria.
• Execution of review/audit trails of claims and data streams, on a sample basis, to determine the level of accuracy in collection, transcription, and aggregation.
• Submit final management report, assurance report and presentation to the company.

Bank will initiate internal check to ensure that there is no conflict of interest with the assurance provider and acceptance of our engagement will be subject to satisfactory completion of the same.

Section 5: Deliverables:

• Assurance statement for BRSR (including BRSR core and non-core)
• Submission of gap analysis and recommendations for management that contains observations and areas where improvements can be made for future reporting.

Section 6: Minimum Eligibility Criteria

• The firm should have the capacity/ expertise to perform the assignment of providing assurance in the area of sustainability.
• The firm should deploy employees who have expertise and skills to complete the review as per the scope.
• The audit firm should have conducted similar kind of assignments preferably in scheduled commercial bank in India / financial institutions in India in the past.
• The party/consultant should have minimum 5 years of experience in undertaking Assurance Engagements based on ISAE 3000/ SSAE3000/ SAE3410 standard.
• The assurance provider or any of its associates shall not sell its products or provide any non-audit /non-assurance related service including consulting services, to Federal Bank or its group entities.
• There must be no orders/ disciplinary action taken against the applicant by any statutory/ regulatory/ quasi-regulatory authorities.

Section 7: General Terms and Conditions

a) Term of Assignment

The auditor under this RFP will be appointed from the date of issuance of Engagement Letter and shall hold office till the conclusion of submission of final report or for the allotted period whichever is earlier.

b) Adherence to Terms and Conditions

The auditors who wish to submit responses to this RFP should note that they should abide (in true intent and spirit) by all the terms and conditions contained in the RFP. If the responses contain any extraneous conditions put in by the Respondents, such responses may be disqualified and may not be considered for the selection process.

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The Federal Bank Ltd., Integrated Risk Management Department

Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]

IRMD- Market Risk (E&S Division)

c) Software / Hardware requirements

All the software, hardware equipment's like Laptops, tools etc. to carry out the assignment has to be brought by the auditor at no extra cost.

d) Professionalism

Auditors should provide professional, objective, and impartial advice at all times and hold the Bank's interest paramount and should observe the highest standards of ethics, values and code of conduct, honesty and integrity while executing the assignment.

The Bank reserves the right to ascertain information from the other Banks and institutions to which the auditor has rendered their services for execution of similar projects.

e) Single Point of Contact

The auditor has to provide details of a single point of contact viz. name, designation, address, e-mail address, telephone/mobile no., fax no. etc.

f) Applicable Law and Jurisdiction of Court

The Contract with auditor shall be governed in accordance with the laws of India for the time being in force and will be subject to the exclusive jurisdiction of courts at Kochi, Kerala.

g) Authorized Signatory

The selected auditor shall indicate the authorized signatories who can discuss and correspond with the Bank regarding the obligations under the contract.

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The Federal Bank Ltd., Integrated Risk Management Department

Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]

IRMD- Market Risk (E&S Division)

Section 8: Annexure 1

ADDITIONAL DETAILS TO BE FURNISHED BY THE AUDIT FIRM

Sl.	Particulars	Details
No.
1.	Name of the firm
2.	Address of the Firm (Head Office)
3.	Number of Branches / offices with details
	thereof
4	Details of other engagements by the firm
	or its associates with Federal Bank or
	our group entities
5	Number of Chartered Accountants/
	Certified professionals (If any)
6	Number of full time Partners (out of Sl.
	No. 5)
7.	Names of Partners with qualification and	Name of Partner	Experience	as partner
	years of experience		with firm & total number
			of post	qualification
			experience
8.	No. of professional staff (Sustainability
	Professionals)
	(With at least one-year continuous
	association of professional staff with the
	firm as on the date of shortlisting)
9.	Standing of the firm (in years)
10.	Experience as assurance provider of
	Bank(s)/Fis on BRSR or any other
	Sustainability Reporting (no. & name(s)
	of Bank(s)/Fis)
11.	Experience in similar kind of
	assessments with other firms (Details)
12.	Whether any disciplinary action taken /
	pending proceedings against the firm by

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The Federal Bank Ltd., Integrated Risk Management Department

Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]

IRMD- Market Risk (E&S Division)

any statutory/ regulatory/ quasi- regulatory authorities

1. Whether debarred by other regulators/ law enforcement agencies? /Any cases pending with them?
2. Whether any of the clients of the firm in legal battle with Federal Bank?
3. Number of qualified professionals who would be engaged exclusively for the proposed BRSR assurance of Federal Bank:

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The Federal Bank Ltd., Integrated Risk Management Department

Regd. Office: Federal Towers, P O Box No. 103, Aluva, Kerala, India 683 101

e-mail: [e-mail] | Phone: [phone]