Common use of Financial Situation Clause in Contracts

Financial Situation. 3.1 Financial Performance (a)Submission of audited balance sheets and other financial statements acceptable to the Employer, for the last two [2] years to demonstrate Financial Capacity: Computation shall be made for the following Ratios and marks awarded to each of the ratios: -Working Capital Ratio - Turn Over ratio - Current ratio - Fixed Asset ratio (b) A reliable line of credit and/or capacity to have a cash flow equivalent to equivalent to Kshs. 50,000,000 (a) Score 0 – 10 Marks Each of the Ratios shall be Evaluated based on the Submissions signed by the Auditor (b) Score  0 – 2 Marks Section 7, Schedule 8 (a) All pages must be initialized and stamped by both a practicing Auditor registered with ICPAK and one of the Directors. Auditor’s practicing membership number from ICPAK must be indicated. (b) The Line of Credit Must be Explicit on the Offer from the Bank and indicate unconditional Offer. (c) All pages must be initialized and stamped by the issuing bank Qualification Criteria Compliance Requirement Documentation No. Subject Requirement Bidder Submission Requirements

Financial Situation. 3.1 Financial Performance (a)Submission of audited balance sheets and other financial statements acceptable to the Employer, for the last two [2] years to demonstrate Financial Capacity: Computation shall be made for the following Ratios and marks awarded to each of the ratios: -Working Capital Ratio - Turn Over ratio - Current ratio - Fixed Asset ratio (b) A reliable line of credit and/or capacity to have a cash flow equivalent to equivalent to Kshs. 50,000,000 15,000,000 (a) Score 0 – 10 Marks Each of the Ratios shall be Evaluated based on the Submissions signed by the Auditor (b) Score  0 – 2 Marks Section 7, Schedule 8 (a) All pages must be initialized and stamped by both a practicing Auditor registered with ICPAK and one of the Directors. Auditor’s practicing membership number from ICPAK must be indicated. (b) The Line of Credit Must be Explicit on the Offer from the Bank and indicate unconditional Offer. (c) All pages must be initialized and stamped by the issuing bank Qualification Criteria Compliance Requirement Documentation No. Subject Requirement Bidder Submission Requirements

Financial Situation. 3.1 Financial Performance (a)Submission of audited balance sheets and other financial statements acceptable to the Employer, for the last two [2] years to demonstrate Financial Capacity: Computation shall be made for the following Ratios and marks awarded to each of the ratios: -Working Capital Ratio - Turn Over ratio - Current ratio - Fixed Asset ratio (b) A reliable line of credit and/or capacity to have a cash flow equivalent to equivalent to Kshs. 50,000,000 20,000,000 (a) Score Score• 0 – 10 Marks Each of the Ratios shall be Evaluated based on the Submissions signed by the Auditor (b) Score  • 0 – 2 Marks Section 7, Schedule 8 (a) All pages must be initialized and stamped by both a practicing Auditor registered with ICPAK and one of the Directors. Auditor’s practicing membership number from ICPAK must be indicated. (b) The Line of Credit Must be Explicit on the Offer from the Bank and indicate unconditional Offer. (c) All pages must be initialized and stamped by the issuing bank Qualification Criteria Compliance Requirement Documentation No. Subject Requirement Bidder Submission Requirements