INVITATION FOR BID (IFB)
Section I: Invitation For Bids (IFB):Version2
Page 4 of 5
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.
2.3 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.
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 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 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.
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.