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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) = (X1+X2+X3) / (Y1+Y2+Y3) X 100
Where X1, X2, X3 are individual Net worth which should not be less than 75% of their
respective paid up share capitals and Y1, Y2, Y3 are individual paid up share capitals
6.2.4 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 in
substantiation of its qualification.
1. Copies of the unaudited unconsolidated financial statements of the bidder along with
copies of the audited consolidated financial statements of the Holding Company.
2. A Certificate from the CEO/CFO of the Holding Company, as per the format
enclosed in the bid documents, stating that the unaudited unconsolidated financial
statements form part of the Consolidated Annual Report of the Holding company.
6.2.5 In cases where audited results for the last preceding 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 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.
NOTES:
1. Net worth means the sum total of the paid up share capital and free reserves.
Free reserves 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.
2. Other income shall not be considered for arriving at annual turnover.
3. “Holding company “and “Subsidiary Company” shall have the meaning
ascribed to them as per Companies Act of India, in vogue.
7.0 NTPC shall allow purchase preference, as indicated in the bidding documents, to
bids from local suppliers as defined in the bidding documents. The bidders may