DETAILED INVITATION FOR BIDS
6.2.0
Financial Criteria
6.2.1
Financial Criteria for Bidder
6.2.1.1 The average annual turnover of the Bidder, in the preceding three (3) financial years as on the date of Techno-
Commercial bid opening, should not be less than Rs. 628 Lakh (Rs. Six Hundred and Twenty Eight Lakh only).
In case a bidder does not satisfy the financial criteria, stipulated above on its own, its Holding Company would be
required to meet the stipulate turnover requirements 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 Techno-
Commercial bid, a Letter f Undertaking from the Holding Company, 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.
6.2.1.2 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 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.
6.2.1.3 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:
(a) Copies of the unaudited unconsolidated financial statements of the bidder along with copies of the audited
consolidated financial statement 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 he 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 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 for the 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.
6.2.2
Financial Criteria for Collaborator / Associate
Financial Criteria for Collaborator/ Associate shall be same as those for the Bidder.
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” shall have the meaning ascribed to them as per Companies Act
of India.
(iv)
For Turnover indicated in foreign currency, the exchange rate as on seven (07) days prior to the date
of techno-commercial bid opening shall be used.
SECTION - I (IFB)