2.2 The 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. 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 Company wherever applicable, the Net Worth of the Bidder and its
Subsidiary(ies) and/or 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.
2.3 In case the Bidder is not able to furnish its audited financial statements on standalone entity basis, the un-audited
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 un-audited 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
(
un-audited unconsolidated financial statements form part of the Consolidated Annual Report of the Company.
In cases where audited results for the last preceding financial year as on the date of opening of Techno-commercial bid are not
available, certification of financial statements from a practicing Chartered Accountant shall also 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 in Clause 2.1 above on its own, Its Holding Company would
require to meet the stipulated turnover requirements at Clause 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 should be required to furnish along with its Techno-Commercial bid, a letter of undertaking from its
Holding Company, supported by Board Resolution of the Holding Company, as per the format enclosed in the bidding documents,
pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.
Notes for Clause 2.0
i. “Holding Company” and “Subsidiary” shall have the meaning ascribed to them as per Companies Act of India, in vogue.
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 do 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. While computing the annual turnover other Income shall not be considered.
iv. For annual turnover indicated in foreign currency, the exchange rate as on 7 days prior to the date of techno-commercial bid
opening shall be used.
3.0 The Vendor shall submit the following documents in support of meeting the QR along with their bid
3.1 Copies of LOAs / work orders and execution/completion certificate to establish the requirement in support of meeting the
Qualifying Requirement at 1.0
GENERAL CONDITIONS
Responses submitted by Vendors who do not meet the qualifying requirements or incomplete bids, will be rejected.
NTPC reserves the right to verify any claims made by Vendors and to carry out a capability assessment. The decision of
NTPC shall be final in this regard.
Page 6 of 6
SECTION - I INVITATION FOR BIDS (IFB)
