capital however individually, their Net worth should not be less than 75% of their respective paid
up share capitals.
2.3 In case the bidder is not able to furnish its audited financial statement on standalone entity
basis, the unaudited unconsolidated financial statements of the bidder can be considered
acceptable provided the bidder furnishes the following further documents on substantiation of
its qualification.
a. Copies of unaudited unconsolidated financial statement of the bidder along with
copies of audited consolidated financial statements of the Holding Company.
b. A certificate from the CEO/CFO of the Holding Company, as per format enclosed in
the bid documents, stating that the unaudited unconsolidated financial statements
form part of the consolidated Annual Report of the 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, bidder is not able to submit the certificate from
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 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.
2.4 In case a bidder does not satisfy the financial criteria, stipulated at para 2.1 and/or para 2..2
above on its own, the Holding Company would be required to meet the stipulated turnover
requirements at para 2.1 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 bid, a Letter of Undertaking from the Holding Company, supported by 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.
NOTES:
1. 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.
2. Other income shall not be considered for arriving at annual turnover.