4.2 FINANCIAL CRITERIA
4.2.1 The average annual turnover of the Bidder, should not be less than INR 2000 Million (Indian Rupees Two
Thousand Million only) or in equivalent foreign currency during the preceding three (3) financial years prior
to the last date of submission of application for enlistment.
In case a Bidder does not satisfy the annual turnover criteria, stipulated above on its own, its Holding
Company would be required to meet the stipulated turnover requirements as above, 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 Application for Enlistment, a Letter of Undertaking from the Holding
Company, supported by the Holding Company’s Board Resolution, as per the format enclosed in the
Enlistment documents, pledging unconditional and irrevocable financial support for the execution of the
Contract by the Bidder in case of award.
4.2.2 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 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.\
4.2.3 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 on 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 its Holding Company.
b) Certificate from the CEO/ CFO of the Holding Company, as per the format enclosed in the bidding
documents, stating that the unaudited unconsolidated financial statements form part of the consolidated
financial statement of the Holding Company.
In case where audited results for the last financial year as on last date of submission of Application for
Enlistment are not available, the financial results certified by a practicing Chartered Accountant shall be
considered acceptable. In case the Bidder is not able to submit the Certificate from a practicing Chartered
Accountant certifying its financial parameters, the audited result of three consecutive financial years
preceding the last financial year shall be considered for evaluating 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 last date of submission of Application
for Enlistment and the Certificate from a practicing Chartered Accountant certifying the financial parameters
is not available.
Notes for Clause 4.2:
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.
ii) Other income shall not be considered for arriving at annual turnover.