Punjab National Bank inviting for appointment of asm (agency for specialized monitoring) in the account of m/s pataniali avurved limited

1.What the Tender Is For

Appointment of an ASM (Monitoring Agency) to supervise the borrower’s operations and fund usage.

This is typically used for large stressed or high-value loans.

2.Contract Duration

• Initial tenure: 3 years
• May be extended by bank
• Can be terminated early for poor performance

3. Scope of Work — Credit Monitoring (Very Extensive)

 Core Purpose

Ensure the borrower uses loan funds properly and remains financially healthy.

 Key Monitoring Duties

 Business & Operations Monitoring

• Track production, sales, and capacity utilization
• Review procurement of raw materials
• Verify operations vs projections
• Identify operational problems

(Working capital monitoring section)

Financial Monitoring

• Review fund flows & cash flows
• Verify utilization of bank funds
• Check diversion or misuse of funds
• Analyze repayment capacity

 Inventory & Assets Verification

• Physical stock inspection
• Inventory movement analysis
• Receivables monitoring
• Asset verification

 Project Monitoring (if applicable)

• Progress vs timelines
• Cost overruns
• Contractor payments
• Implementation issues

4. Risk Identification

Detect early warning signs such as:

• Financial stress
• Operational inefficiencies
• Fraud indicators
• Asset deterioration
• Market risks

Industry-Specific Monitoring

Includes review of:

• Pharma production norms
• Regulatory compliance
• Product trends
• Raw material sourcing

5. Who Can Apply (Strict Eligibility)

 Must be PNB-empaneled ASM
 Must belong to same state (Delhi)
 Must be sector-specialized (pharmaceuticals)
 Must not handle more than 3 ASM accounts at a time
 Must not be blacklisted
 Must submit employee expertise details

6.Technical Evaluation (70% Weight)

Technical bid evaluated on factors such as:

• Number of ASM assignments handled
• Firm age
• Partners/directors strength
• Professional staff (CAs, engineers, etc.)
• Relevant audit experience
• Distance from borrower
• Industry expertise

Minimum qualifying technical score: 60% (42/70)

Financial Evaluation (30% Weight)

• Fee quoted as % of exposure or limits
• Minimum fee threshold applies
• Lowest bid gets highest score
• Final score = Technical + Financial