In case a bidder does not satisfy the financial criteria, stipulated above on its own, its Holding
Company would be required to meet the stipulated turnover requirements 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 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.
9.2.2 The Net Worth of the bidder as on the last day of the preceding financial year (reckoned on the date of
techno-commercial bid opening) should not be less than 100% of the Bidder’s paid-up share capital. In
case the Bidder 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% 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.
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.
9.2.3 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:
(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) A 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 annual 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 practicing Chartered
Accountant certifying its financial parameters, the audited results for the 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.
(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" 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 (07) days prior to the