requirement as 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.
2.2 In case the Bidder is not able to furnish its audited financial statements on standalone
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:
i) Copies of the unaudited unconsolidated financial statements of the Bidder
along with copies of the audited consolidated financial statements of its
Holding Company.
ii) A Certificate from the CEO / CFO of the Holding Company, as per the format
enclosed with the bidding documents stating that the unaudited
unconsolidated financial statements from part of the consolidated financial
statements of the Holding Company.
In cases 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 a 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 for clause 2.0
i) Other income shall not be considered for arriving at annual turnover.
ii) "Holding Company" and "Subsidiary Company" shall have the
meaning ascribed to them as per Companies Act of India.
iii) 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.