
 
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 meets 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.  
       For  Consortium/  Joint  Ventures,  if  permitted  under  technical  criteria  for  qualification  under 
para1.0 above, the Net worth of all Consortium/ Joint Venture members in combined manner 
should not be less than 100% (hundred percentage) of  their paid up share capital however 
individually, their  Net  worth should not be less than 75%  (seventy five  percentage) of  their 
respective paid up share capital. 
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. 
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  date  of  techno-commercial  bid  opening  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 
techno-commercial  bid  opening  and  the  Certificate  from  a  practicing  Chartered  Accountant 
certifying the financial parameters is not available. 
Notes for Clause 2.0: 
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. 
 
 
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