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.
6.2.3 Net Worth of the bidder should not be less than 100% of the bidder's paid up share capital as on
the last day of the preceding financial year on the date of Techno-commercial bid opening. In case
the Bidder meets 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.
6.2.4 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.
6.2.5 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 Holding Company.
6.2.6 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 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:
i. Other income shall not be considered for arriving at annual turnover.
ii. 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 doesn’t 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.
iii. "Holding Company" and " Subsidiary Company" shall have the meaning ascribed to them as per
companies Act of India.