INVITATION FOR BID (IFB)
Section I: Invitation For Bids (IFB):Version2
Page 4 of 5
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.
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.
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 practising Chartered
Accountant certifying the financial parameters is not available.
Notes for Clause2.0 above: