the last day of the preceding financial year is at least equal to or more than the paid-
up share capital of the Holding Company. In such an event, the Bidder would be
required to furnish along with its Techno-Commercial bid, a Letter of Undertaking
from the Holding Company, supported by the Holding Company’s Board Resolution,
as per the format enclosed in the bid documents, pledging unconditional and
irrevocable financial support for the execution of the contract by the Bidder in case of
award.
b) Net Worth of the Bidder should not be less than 100% (hundred percent) of its paid
up share capital as on the last day of the preceding financial year on the date of
Techno-Commercial bid opening. In case the Bidder does not meet the Net Worth
criteria on its own, it can meet the requirement of Net Worth based on the strength of
its Subsidiary(ies) and/or Holding Company and/or Subsidiaries of its Holding
company wherever applicable. In such a case, however, the Net Worth of the bidder
and its Subsidiary(ies) and/or Holding company and/or Subsidiary(ies) of the Holding
company, in combined manner should not be less than 100% (hundred percent) of
their total paid up share capital. However individually, their Net Worth should not be
less than 75% (seventy five percent) of their respective paid up share capitals.
Net worth in combined manner shall be calculated as follows:
Net worth (combined) = {(X1+X2+X3)/ (Y1+Y2+Y3)} X 100
Where X1, X2, X3 are individual Net Worth which should not be less than 75% of the
respective paid up share capitals and Y1, Y2, Y3 are individual paid up share capitals.
c) In case the Bidder is not able to furnish its audited financial statements on stand-alone
entity basis, the unaudited unconsolidated financial statements of the Bidder can be
considered acceptable provided the Bidder further furnishes the following documents
for substantiation of its qualification.
(i) Copies of the unaudited unconsolidated financial statements of the Bidder
along with copies of the audited consolidated financial statements of its
Holding Company.
(ii) A Certificate from the CEO/CFO of the Holding Company, as per the format
enclosed in the bidding documents, stating that the unaudited unconsolidated
financial statements form part of the Consolidated Annual Financial
Statements of the company.
In cases where audited results for the last financial year as on the date of the Techo-Commercial Bid
opening are not available, the financial results certified by a practicing Chartered Accountant shall
be considered acceptable. In case, Bidder is not able to submit the Certificate from practicing
Chartered Accountant certifying its financial parameters, the audited results of three consecutive
financial years preceding the last financial year shall be considered for evaluating the financial
parameters. Further, a Certificate would be required from the CEO/CFO as per the format enclosed
in the bidding documents stating that the financial results of the Company are under audit as on the
date of Techno-Commercial bid opening and the Certificate from the practicing Chartered
Accountant certifying the financial parameters is not available.