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Required Audited Financial Statement

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Required Audited Financial Statement

Post by lhalhi77 on Thu Jul 16, 2009 5:56 pm

Good day, can someone help me where to find resolution, memo circular on the required amount in the submitted Audited Financial Report of the prospective bidder.? Thanks
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Re: Required Audited Financial Statement

Post by jcolas on Thu Jul 16, 2009 8:28 pm

May I try to help you find answer to your question. The Audited Financial Report is one of the minimum eligibility requirement being asked to be submitted by a prospective bidder inside the Eligibility Envelope. There is no required amount, neither is a required amount discussed in a memo, a circular or a resolution as the Audited Financial Report will just show the total amount of assets and total liabilities of the prospective bidder. From this statement, the prospective bidders financial capability to undertake a contract can be determined by the BAC during post-qualification. I hope I have answered your question.
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Re: Required Audited Financial Statement

Post by misty on Fri Jul 17, 2009 9:45 am

i believe the audited financial statements are there for the procuring entity to know if the bidder is complying with the BIR regulations; also to verify the amounts of current assets and current liabilities in the computation of the NFCC.
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Re: Required Audited Financial Statement

Post by RDV @ GP3i on Fri Jul 17, 2009 10:42 am

lhalhi77 wrote:Good day, can someone help me where to find resolution, memo circular on the required amount in the submitted Audited Financial Report of the prospective bidder.? Thanks

As pointed out by jcolas, there is no "required amount" in the AFS of the prospective bidder, which you could find in a GPPB issuance. The purpose of the requirement for the submission of AFS is to check the financial capacity of the bidder to implement the project, if he is awarded the contract.

As mentioned by misty, on the other hand, you also use the AFS to check/verify the Net Financial Contracting Capacity (NFCC) of the bidder, particularly his current assets and current liabilities, if the bidder submitted NFCC (which is at least equal to ABC) in his eligibility envelope. However, if the bidder submitted a Credit Line commitment or a Cash Deposit Certificate, there is no need to check his NFCC.
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Re: Required Audited Financial Statement

Post by engrjhez® on Fri Jul 17, 2009 1:33 pm

lhalhi77 wrote:Good day, can someone help me where to find resolution, memo circular on the required amount in the submitted Audited Financial Report of the prospective bidder.? Thanks

As already clarified, no minimum amount is required for the validity of AFS but a simple look on it may give an impression (or a simple gauge) on how financially capable the bidder is. We do not expect a firm with a net worth of around a hundred thousand enter multi-million contracts except when other documents can prove it. But proving will certainly lead to a question of declared AFS to the BIR. As a conclusion, this forms part of the silent check on the bidders legal obligations to the government. Very Happy
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