INVITATION FOR BID (IFB)
supported by the Holding Company's 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.
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.0 (b) The Net Worth of the bidder as on the last day of the preceding financial year (reckoned on the date of
techno-commercial bid opening) should not be less than 100% of the Bidder's paid-up share capital. 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% 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 X 1, X2, X3 are individual Net worth which should not be less than 75% of the respective paid up
share capitals and Y 1 , Y2, Y3 are individual paid up share capitals.
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.0) (c)In case the bidder is not able to furnish its audited financial statements on stand alone 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 in the bidding
documents, stating that the unaudited unconsolidated financial statements form part of the consolidated
annual financial statements of the Holding Company.
In case where audited results for the last financial year as on the date of techno commercial bid opening
not available, the financial results certified by a practising Chartered Accountant shall be considered
acceptable. In case, Bidder is not able to submit the certificate from practising Chartered Accountant
certifying its financial parameters, the audited results for the three consecutive financial years preceding
last financial year shall be considered for evaluating the financial parameters. Further, a Certificate would
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 Technocommercial bid opening and the Certificate
from the practising Chartered Accountant certifying the financial parameters is not available.
are
the
be
NOTE:
(
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 asper Companies
Act of India
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. Notwithstanding anything stated above, the Employer reserves the right to assess the capabilities and capacity of
the Bidder/ his collaborators / associates/ subsidiaries/ group companies to perform the contract, should the
circumstances warrant such assessment in the overall interest of the Employer.
Section I: Invitation For Bids (IFB):Version2
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