2.0Financial Criteria
2.1The 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 1251 Lakhs (Rupees Twelve Crore Fifty One Lakhs 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 stipulated 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 of 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.
2.2 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) = (Xl+X2+X3) / (Y1+Y2+Y3) X 100
Where Xl, X2, X3 are individual Net worth which should not be less than 75% of the respective paid up share capitals and YI, Y2, Y3 are individual paid up share capitals.
2.3In 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 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 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 practising Chartered Accountant certifying the financial parameters is not available.
Notes for Clause2.0 above:
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.
b)Other income shall not be considered for arriving at annual turnover.
c)"Holding Company" and "Subsidiary" shall have the meaning ascribed to them as per Companies Act of India.
d)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.
7.0Notwithstanding 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.
8.0Employer reserves the right to reject any or all bids or cancel / withdraw the Invitation for Bids without assigning any reason whatsoever and in such case no bidder / intending bidder shall have any claim arising out of such action.
