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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 as on the last day of the preceding financial year (reckoned
on the date of techno-commercial bid opening) should not be less than 100% of the
bidder’s paid up share capital. In case the Bidder 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 Subsidiary(ies) of its Holding
Companies wherever applicable, 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% of their total paid up share capital.
However individually, their Net worth should not be less than 75% 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 bid 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 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.
NOTES FOR CLAUSE 6.2.0.0 ABOVE:
(i) Net worth means the sum total of the paid up share capital and free reserves.
Free reserves means all reserves credited out of the profits and share premium
account but does not include reserves credited out of the revaluation of the
assets, write back of depreciation provision and amalgamation. Further any debit
balance of Profit and Loss account and miscellaneous expenses to the extent not
adjusted or written off, if any, shall be reduced from reserves and surplus.