DETAILED INVITATION FOR BIDS
FARAKKA STPS, Stage-II (2X500MW)
Bidding Document No. CS-4130-215A-9
ELECTRICAL WORKS FOR SUBMERSIBLE PUMPS
SECTION - I (IFB)
Page 3 of 4
b) Net worth should not be less than 100% (hundred percent) of the bidder’s paid up share
capital as on the last day of the preceding financial year. 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%
(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 paid up share capitals.
c) 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
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 with the bidding documents, stating that the unaudited unconsolidated
financial statements form part of the consolidated financial statements of the
Holding Company.
In cases 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 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
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.
Notes for clause 6.2.0
(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 Company” shall have the meaning ascribed to
them as per Companies Act of India.