In case the Bidder does not satisfy the average annual turnover criteria stipulated above on its
own, its Holding Company would be required to meet the stipulated turnover requirements,
provided that the Net worth of such Holding Company as on 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.
2.2 Net Worth should not be less than 100% (hundred percent) of the Bidder’s paid-up share
capital as on the last day of the preceding financial year. 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
Companies 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.
2.3 In case the Bidder is not able to furnish its audited financial statements on standalone 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 the Holding Company.
(ii) A Certificate from the CEO/CFO of the Holding Company, as per the format
enclosed with the bidding documents, stating that the unaudited unconsolidated
financial statements form part of the consolidated financial statement of the Holding
Company.
In cases 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, Bidder is not able to submit the
Certificate from a 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.