For consortiums/ Joint ventures, wherever applicable, the Net worth of all consortiums/ Joint venture
members in combined manner should 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.
1.2.3 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.
1.2.4 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.
1.2.5 In case a bidder does not satisfy the financial criteria, stipulated at Para/clause 1.2.1 and/or
Para/clause 1.2.2 above on its own, the Holding Company would be required to meet the stipulated
turnover requirements at Para/clause 1.2.1 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.
1.2.6 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 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.
ii) Other income shall not be considered for arriving at annual turnover.
iii) “Holding Company” and “Subsidiary Company” shall have the meaning ascribed to them as per
Companies Act of India.
iv) For amount in foreign currency, the exchange rate as on seven (7) days prior to the date of Techno-
Commercial bid opening shall be used.