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I INVITATION FOR BIDS (IFB)
2.3 Net Worth of the bidder should not be less than 100% of the bidder's paid up share capital as on the last day
of the preceding financial year on the date of Techno-commercial bid opening. In case the Bidder meets the
requirement of Net worth based on the strength of its Subsidiary(ies) and/or Holding Company and/or
Subsidiary(ies) 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.
In case the Bidder is not able to furnish its audited financial statements on stand
unaudited unconsolidated financial statements of the Bidder can be considered acceptable provided the
Bidder further furnishes the following documents for substantiation of its qualification:
(i) Copies of the unaudited unconsolidated financial statements of the Bidder 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 bid
documents, stating that the unaudited unconsolidated financial statements form part of the Consolidated
Annual Financial Statements of the Holding Company.
In cases where audited results for the last financial year as on the date of Techno
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 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 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.
0.0
Notes for clause 2.0:
Other income shall not be considered for arriving at annual turnover.
ii) 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.
iii) "Holding Company" and "Subsidiary Company" shall have the meaning ascribed to them as per the
Companies act of India.
3.0
4.0
Notwithstanding anything stated above, the Employer reserves the right to undertake a physical assessment
of the capacity and capabilities including financial capacity and capability of the Bidder / his Collaborator(s)
/ Associate(s) / Subsidiary(ies) / Group Company(ies) to perform the Contract, should the circumstances
warrant such assessment in the overall interest of the Employer.
The physical assessment shall include but not be limited to the assessment of the
office/facilities/banker’s/reference works by the Employer. A negative determination of such assessment of
capacity and capabilities may result in the rejection of the Bid.
The above right to undertake the physical assessment shall be applicable for the qualifying requirements
stipulated in the bidding documents.
NTPC reserves the right to reject any or all bids or cancel/withdraw the NIT for the subject package without