MIRA INFORM REPORT

 

 

Report Date :

21.05.2012

 

IDENTIFICATION DETAILS

 

Name :

UPPER TAMAKOSHI HYDROPOWER LIMITED 

 

 

Registered Office :

Bishnudhan Niwas, Annapurna Marg Gyaneswor, Kathmandu

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2010

 

 

Date of Incorporation :

9.03.2007

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

To Develop Hydropower Projects.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Nepal

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

UPPER TAMAKOSHI HYDROPOWER LIMITED 
Bishnudhan Niwas, Annapurna Marg
Gyaneswor, Kathmandu, Nepal
P.O.Box No. 26070, Kathmandu
Tel. No.:  977-1-4421988, 4420295
Fax No.: 977-1-4412569
Email: info@utkhpl.org.np, neautp@mos.com.np

 

 

Summary

 

History :                       It is a private limited company incorporated at Kathmandu under His Majesty  Govt.

                                    Act No.P0991 of 9.03.2007

 

Directors :        

  • Chairman - Managing Director, Nepal Electricity Authority (NEA)
  • Member - Representative from Employees' Provident Fund (EPF)
  • Member - Managing Director, Nepal Telecom (NTC)
  • Member - Deputy Managing Director, Finance, NEA
  • Member - General Manager, Generation Business Group, NEA
  • Member - General Manager, Engineering Services Business Group, NEA

 

Chief Executive Officer and Project Director : Mr. Sunil Kumar Dhungel

Company Secretary: Mr. Ram Sundar Shrestha

Legal Advisor: Mr. Murali Prasad Sharma

 

Bankers :          1.         Nepal Rastriyo Bank

 

Shareholders :               Share hold by govt. of Nepal

 

 

Auditors:           S.K. Ratna & Co.., Kathmandu (Nepal)

 

Business :         Nepal Electricity Authority (NEA) has established an autonomous company named Upper Tamakoshi Hydropower Limited (UTKHPL) in March 2007 (2063/11/25 B.S.) as an executing agency for the implementation of the Project. There are six full time and two invitee members in the Board of Directors (BoD) at present. Out of six full time members, four members from NEA, one from Employees Provident Fund (EPF) and one from Nepal Telecom (NTC) are representing in the BoD. Similarly, representatives of Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS) are also in the BoD as invitee members.


The majority share (51%) of the Company is hold by four public entities, namely, Nepal Electricity Authority (NEA), Nepal Telecom (NTC), Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS). NEA has 41% stake, NTC has 6% and CIT & RBS each has 2% stake in the Company. Similarly, general public and residents of Dolakha District will have 15% and 10% share respectively. The remaining 24% share will be taken over by contributors in Employees Provident Fund (EPF), NEA & Companys staffs and staffs of financial institutions providing loans.


The Upper Tamakoshi Hydroelectric Project is the national priority project and when it is completed, it will be the largest hydroelectric plant in Nepal. The Project is entirely financed from the domestic financial institutions and companies.


The Company has planned to develop hydropower projects in Tamakoshi River basin as below:

  1. First Stage : Upper Tamakoshi Hydroelectric Project (UTKHEP) by 2015,
  2. Second Stage : Diversion of Rolwaling River to the UTKHEP intake pond by 2017, and
  3. Third Stage : Tamakoshi V (100 MW) and Upper Tamakoshi A HEP (45 MW) by 2020.

Japan International Co-operation Agency (JICA); while preparing a Master plan of the Koshi Basin Water Resources Development, had identified a ‘TA-6’ project close to the existing project site of the Upper Tamakoshi Hydroelectric Project. During a study of the Himalayan region in 1999, an Austrian, Mr. Christian Ulhar carried out pre-feasibility studies and concluded that the project would have an installed capacity of 120 MW.

 Because of the competitively low project cost and its overall attractiveness, NEA conducted a first stage detailed feasibility study in 2001 mobilizing their own physical, financial and human resources. This study showed that the new feature of the project when installed would have a capacity of 250 MW and an annual average energy generation of 1570 GWh, at a cost of US$ 1100 per KW. During the study, they completed a detailed engineering design of a 28.5 km long access road and seven different bridges. The study was completed in 2003.

With financial and environmental attractiveness of the project, it was recommended for the second phase of the Detailed Feasibility study, as per international standards. Accordingly, with financial assistance from the Government of Norway, the Norwegian consultant Norconsult AS completed a Bankable Detailed Design Feasibility Study in May 2005. This study presents the installed capacity of the project at 309 MW, with an annual average generation of 1737 GWh of energy.

 

Financial

           

Particular

July 15, 2010
July 15, 2009

Sources of Funds

NP Rs. In Lacs

NP Rs. In Lacs

Share Capital

2.62

0.59

Reserves & Surplus

13.56

3.40

Unsecured Loans

2.67

4.30

Deferred Tax Liability (Net)

0.01

0.01

Total Liabilities

18.86

8.30

Application Of Funds

Gross Block

1.28

0.88

Less:  Depreciation

0.43

0.24

Net Block

0.85

0.64

Current Assets, Loan and Advances

Inventories

30.24

22.01

Sundry Debtors

10.84

9.63

Cash And Bank Balances

0.14

0.82

Loans and Advances

2.49

1.31

 

43.71

33.77

Less : Current Liabilities & Provisions

Current Liabilities

23.56

25.09

Provisions

2.18

1.06

 

25.74

26.15

Net Current Assets

17.97

7.62

Miscellaneous Expenditure

0.04

0.04

Total Assets

18.86

8.30

 

Particulars

July 15, 2010
July 15, 2009

PAT / Total Income (%)

                       2.17

                     3.89

Net Profit Margin

(PBT/ Total Income) (%)

3.33

5.30

Return on Total Assets

(PBT/Total Assets} (%)

7.13

11.32

Return on Investment (ROI)

(PBT/Net worth)

0.20

0.98

Debt Equity Ratio

(Total Liability/Net worth)

1.76

7.63

Current Ratio

(Current Asset/Current Liability)

                       1.70

                     1.29

 

 

Remarks :       

Payments are reported to be correct and regular as per commitments.  Trade relations are fair. Consider good for normal business Engagement as usual trade terms & condition.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.87

UK Pound

1

Rs.86.46

Euro

1

Rs.69.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.