INVITATION FOR BID
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. In such a case, however, 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.
2
.3 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:
2.3.1
Copies of the unaudited unconsolidated financial statements of the bidder
along with copies of the audited consolidated financial statements of its
Holding Company.
2
.3.2 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 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 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 bid documents stating that the financial results of the Company
are under audit as on the date of bid opening and the Certificate from the
practicing Chartered Accountant certifying the financial parameters is not
available.
Notes for Clause 2.0:
a. 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.
SECTION-I (IFB)
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