applicable. In such case the Net worth of the Applicant 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 respective
paid up share capitals.
c) In case the Applicant is not able to furnish its audited financial statements on
stand-alone entity basis, the unaudited unconsolidated financial statements of
the Applicant can be considered acceptable provided the Applicant further
furnishes the following documents for substantiation of its qualification.
I) Copies of the unaudited unconsolidated financial statements of the
Applicant 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 enlistment document, stating that the unaudited
unconsolidated financial statements form part of the Consolidated
Annual Financial Statements of the company.
In cases where audited results for the last financial year are not available, the
financial results certified by a practicing Chartered Accountant shall be
considered acceptable. In case, Applicant 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 as per the format enclosed in
the enlistment documents stating that the financial results of the Company are
under audit as on the date of application bid opening and the Certificate from
the practising Chartered Accountant certifying the financial parameters is not
available.
Notes for Clause 3.2 above:
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.