DETAILED INVITATION FOR BID
share capital of the Holding Company. In such an event, the Collaborator/Associate 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 Collaborator/Associate in case of award.
b) The Net Worth of the Collaborator/Associate as on the last day of the preceding financial
year should not be less than 100% (hundred percent) of its paid-up share capital. In case
the Collaborator/Associate does not satisfy 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 Collaborator/Associate 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 Collaborator/Associate is not able to furnish its audited financial statements on
stand-alone entity basis, the unaudited unconsolidated financial statements of the
Collaborator/Associate can be considered acceptable provided the Collaborator/Associate
further furnishes the following documents for substantiation of its qualification:
(i) Copies of the unaudited unconsolidated financial statements of the Collaborator/Associate
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 bid documents, stating that the unaudited unconsolidated financial statements form
part of the consolidated annual financial statements of the Holding Company.
In case where audited results for the last financial year as on the date of Techno
Commercial bid opening are not available, the financial results certified by a practicing
Chartered Accountant shall be considered acceptable. In case, Collaborator/Associate is
not able to submit the Certificate from practicing Chartered Accountant certifying its
financial parameters, the audited results of the 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 bid
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.