2
.2 Net Worth of the Consultant as on the last day of the preceding financial year should
not be less than 100% (hundred percent) of consultant’s paid-up share capital. In case
the Consultant does not satisfy the Net Worth criteria on its own, it can meet 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 Consultant 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.
Section 1.01 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 Consultant is not able to furnish its audited financial statements on
standalone entity basis, the unaudited unconsolidated financial statements of the
Consultant can be considered acceptable provided the Consultant further furnishes the
following documents on substantiation of its qualification:
(
a) Copies of the unaudited unconsolidated financial statements of the Consultant
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 unaudited unconsolidated
financial statements form part of the Consolidated Annual Report of the
Company.
In case where audited results for the last financial year as on date of techno-
commercial bid opening are not available, the financial results certified by a practicing
Chartered Accountant shall be considered acceptable. In case the Consultant is not
able to submit the Certificate from a practicing Chartered Accountant certifying its
financial parameters, the audited result of three consecutive financial years preceding
the last financial year shall be considered for evaluating 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 techno-commercial bid opening and the Certificate from a practicing Chartered
Accountant certifying the financial parameters is not available.
Notes for Clause 2.0:
i. 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.
ii. Other income shall not be considered for arriving at annual turnover.
