not be less than 100% of their 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) = (X1+X2+X3) / (Y1+Y2+Y3) X 100%
Where X1, X2, X3 are individual Net Worths which should not be less than 75% of the
respective paid of 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 statement on standalone entity
basis, the unaudited unconsolidated financial statements of the bidder can be considered
acceptable provided the bidder furnishes the following further documents on substantiation of
its qualification.
a) Copies of unaudited unconsolidated financial statement of the bidder along with copies of
audited consolidated financial statements of the Holding Company.
b) A certificate from the CEO/CFO of the Holding Company, as per format enclosed in the bid
documents, stating that the unaudited unconsolidated financial statements form part of the
consolidated Annual Report of the Company.
2.4 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, bidder is not able to submit the certificate
from practicing Chartered Accountant certifying its financial parameters, the audited results of
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
2.5 In case a bidder does not satisfy the financial criteria, stipulated at Para/clause 2.1 and/or
Para/clause 2.2 above on its own, the Holding Company would be required to meet the
stipulated turnover requirements at Para/clause 2.1 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 bid, a Letter of Undertaking from the Holding Company,
supported by 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.
Notes:
i) 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