Uttar pradesh cooperative sugar factories federation limited

A brief profile of each sugar mill and distillery is enclosed at Annexure-I for your ready reference. Further information in respect of the same can be obtained from the designated Nodal Officer of UPCSFFL namely:

1. 
   Sri Chandra Prakash Mishra, Managing Director, U.P. Co-operative Sugar factories Federation Limited, 9-A, Rana Pratap Marg, Lucknow-2260010, Tel.:0522-2200183,+91-9999400995,+91-9999400994
   

2. 
   Eligibility criteria
   

1. 
   The bidder should be a “Government Approved Valuer”
   
2. 
   Preference will be given to the bidder who has completed valuation assignments of at least 10 industrial units, of which at least 2 assignments should involve valuation of sugar mill/distillery.
   
3. 
   Preference will be given to valuers with prior experience of valuation for disinvestment purposes for Government of India or State/UT by valuing the assets using all four methods of valuation.
   
4. 
   The bidder should satisfy itself that it has capacity and manpower and undertake that it can complete valuation of the awarded bundles within the stipulated timeframe (4 weeks from the date of appointment).
   
5. 
   The bidder will need to submit a Bid Security of Rs. 50,000 (Rupees Fifty Thousand Only) per bundle which shall be refunded to the unsuccessful bidders within one week of the date of opening of the bids. For successful bidders, the same shall be converted into Performance Security and will be refunded after completion of the valuation assignment to the satisfaction of UPCSFFL.
   

3. 
   Proposed schedule for completing the assignment
   

The Valuer shall be expected to have the entire valuation process completed and submit its report within 4 weeks from the date of appointment. The site visit to sugar mills and distilleries shall be completed by 31^st August 2007. The appointed valuer may contact the Managing Director, UPCSFFL for any assistance/ escort at the site of sugar mill. If the valuer feels that he will not be able to complete the assignment in the stipulated time frame due to non- availability of data it should give a notice stating the information gaps and the expected time delays on such account so as to reach the office of The Managing Director, UPCSFFL, at least 10 days before the completion date stating the information gaps.

4. 
   Last date for submission of bid
   

The interested bidders may submit their bids within a sealed cover subscribing on the top of envelope “Bid for appointment of Valuer” positively by 13.00 hrs. on August 10, 2007 or before, on any working day between 09.30 hrs. and 18.00 hours (IST) to Managing Director, U.P. Co-operative Sugar factories Federation Limited, 9-A, Rana Pratap Marg,Lucknow-2260010, Tel.:0522-2200183

5. 
   Bidding Format
   

The sealed cover (as mentioned in para 4 above) should contain:

• 
  Application Covering letter as per Annexure II
  
• 
  2 separate sealed envelops marked as:
  

- Envelop-B: Financial Bids (as per Annexure IV)

1. 
   Valid and duly authenticated registration certification issued by the state or central government certifying the valuer as a “Government certified valuer”
   
2. 
   Proof for each completed valuation assignment for which credit is claimed
   
3. 
   Full particulars of the constitution, ownership and main business activities of the prospective Valuer(s) (bidder).
   
4. 
   Undertaking stating that the bidder has not been barred from undertaking similar assignments from any of the State Governments or the Union Government of India.
   
5. 
   Details of the pending litigation and contingent liabilities, if any, that could affect the performance of the bidder under the mandate, as also details of any past conviction and pending litigation against sponsors/partners and any areas of possible conflicts of interest.
   

1. 
   Fee for Valuation of Bundle 1
   
2. 
   Fee for Valuation of Bundle 2
   
3. 
   Fee for Valuation of Bundle 3
   
4. 
   Fee for Valuation of Bundle 4
   
5. 
   Fee for Valuation of Bundle 5
   

The opening of bids shall take place at U.P. Co-operative Sugar factories Federation Limited, 9-A, Rana Pratap Marg, Lucknow-2260010 at 1400 hours IST in the presence of bidders on August 10^th 2007.

The bids shall be scrutinized on the basis of details provided in Envelop A (Technical Bid) following the under mentioned qualifying criteria:

WEIGHTAGES: Technical aspects shall carry 50 % weightage whereas the financial aspects shall carry 50% weightage.

Technical

• 
  Past experience of the bidder
  
  • 
    Past experience of Valuation in disinvestment/sale for GOI
    
  • 
    Past experience of valuation in disinvestment for Central/ State Government PSUs
    
  • 
    Past experience valuation of industrial units
    
  • 
    Past experience valuation of sugar Mills
    
  • 
    No. of years experience of key personnel associated with the engagement
    
  • 
    Number of certified valuers with the firm
    

• 
  Lump sum Fee quoted for valuation
  

1. 
   Discounted cash flow (DCF)
   
2. 
   Balance Sheet Method
   
3. 
   Market multiples method/Comparable companies method
   
4. 
   Market valuation of assets/Asset Valuation Method
   

The above methods have been explained in detail in Annexure V

The above valuations have to be supported with well laid out assumptions, which will need to be fully justified and explained in the report and in the presentation as specified under the “Deliverables” section of these Terms of Reference.

If the valuer in his professional opinion believes that other methods of valuation may be appropriate, he may also include these methods in addition to those required. However, the valuer will have to provide a justification for using the method.

1. 
   Plant and Machinery
   
2. 
   Land and Building
   
3. 
   Intangibles, if required
   
4. 
   Other assets
   

The deliverables for valuers includes:

• 
  The last date for submission of valuation report is four weeks from the issue of letter of appointment.
  
• 
  A sealed valuation report containing valuation Report of each of the sugar mills /distillery in the bundle awarded to the Valuer in LoA.
  
• 
  A presentation to justify the recommended valuation, if called for.
  

For each day of delay in submission of the valuation report a penalty of 1% of the valuation fee shall be deducted from fees payable to the valuer for each bundle.

• 
  All the information/details to be supported by authentic documents duly certified by the authorized signatory.
  
• 
  UPCSFFL reserves the right to negotiate the Lump-sum Fee and with the selected bidder.
  
• 
  UPCSFFL reserves the right to reject any or all Bids without assigning any reason thereof as well as the right to add/delete/modify any one or more of the terms and conditions.
  
• 
  UPCSFFL reserves the right to discontinue the services of the appointed Valuer(s) at any point of time on account of force-majeure or non-satisfactory performance by the Valuer(s).
  
• 
  The Valuer is required to comply with the guidelines issued by the Deportment of Infrastructure Development, Government of Uttar Pradesh.