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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