For consortiums/ Joint ventures, where ever applicable, the net worth of allconsortiums/ joint
venture members in combined manner should not be less than 100% of their paid up share
capital. However, individually, their net worth should not be less than 75% of their respective
paid up share capital.
7.2.3 In case the bidderis not able to furnish its audited financial statement on standalone entity
basis, the unaudited unconsolidated financial statements of the bidder can be considered
acceptable provided the bidder furnishes the following further documents on substantiation of its
qualification.
a. Copies of the unaudited unconsolidated financial statement of the bidder along with copies of
the audited consolidated financial statements of the Holding Company.
b. A Certificate from the CEO / CFO of the Holding Company,as per format enclosed in the bid
documents, stating that the unaudited unconsolidated financial statement form part of
Consolidated Annual Report of the company.
In cases where audited results for the lastpreceding financial year arenotavailable,certification of
financial statementsfrompracticingCharteredAccountant shallalso be considered acceptable. In
case thebidder is not able to submit the Certificate fromthe practicing Chartered Accountant
certifying its financial parameters, the audited results of threeconsecutive financial years
preceding last financial year shall be considered for evaluating the financial parameters. Further,
a certificate would be required from the CEO/CFOas 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 certificate from the practicing Chartered Accountant
certifying the financial parameters is notavailable.
7.2.4 In case a bidderdoes not satisfy the financial criteria stipulated at para7.2.1 and / or para
7.2.2 above on its own, the Holdingcompany would be required to meet the stipulated turnover
requirements at para 7.2.1 above, provided that the net worth of the 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
bid, a letter of Undertaking from the holding company, supported by Board Resolution, as per
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.
7.2.5 Notes:
(i) Net worth means the sum total of the paid up share capital and free reserves. Free reserve 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.
(ii) Other income shall not be considered for arriving at annual turnover.