Financial Criteria of Bidder:
2.1 The average annual turnover of the Bidder, in the preceding three (3) financial years as on the
date of Techno-Commercial bid opening, shall not be less than Rs. 1875 Lakhs (Rupees One
Thousand Eight Hundred and Seventy-Five Lakhs only).
2.2 Net worth of bidder shall not be less than 100% of the bidder’s paid up share capital as on the
last day of the preceding financial year. 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)=(x1+x2+x3)/(y1+y2+y3)x100 where x1, x2, x3 are individual net worth
which shall not be less than 75% of the respective paid up 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 statements 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:
· Copies of the unaudited unconsolidated financial statements of the bidder along with
copies of the audited consolidated financial statements of the Holding Company.
·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 company.
2.4 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 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 Cl. 2.1 and/ or Cl. 2.2
above on its own, the holding company would be required to meet the stipulated turnover
requirements at Cl. 2.1 above, provided that the net worth of such holding company as on the
last day of the preceding financial year is atleast 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 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” shall have the meaning ascribed to them as per
Companies Act of India.