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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.
6.2.2 Net Worth of the Bidder as on the last day of the preceding financial year should not be less than
100% (hundred percent) of 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 Subsidiaries 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%
(hundred percent) of their 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.
6.2.3 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:
(a) Copies of the unaudited unconsolidated financial statements 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 the format enclosed with the
bidding documents, stating that the unaudited unconsolidated financial statements form part of the
consolidated 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, 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
(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.
(iii) “Holding Company” and “Subsidiary Company” shall have the meaning ascribed to them as per
Companies Act of India.
(iv) For turnover indicated in foreign currency, the exchange rate as on seven (7) days prior to the date
of techno-commercial bid opening shall be used.