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Report Date : |
07.09.2013 |
IDENTIFICATION DETAILS
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Name : |
UPPER TAMAKOSHI HYDROPOWER LIMITED |
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Registered Office : |
Bishnudhan Niwas, Annapurna
Marg Gyaneswor, Kathmandu, P.O.Box No.
26070 |
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Country : |
Nepal |
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Financials (as on) : |
15.07.2011 |
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Date of Incorporation : |
09.03.2007 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is the national priority project and when it
is completed, it will be the largest hydroelectric plant in Nepal. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Nepal |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
nepal - ECONOMIC OVERVIEW
Nepal is among the poorest and least developed countries in
the world, with about one-quarter of its population living below the poverty line.
Agriculture is the mainstay of the economy, providing a livelihood for
three-fourths of the population and accounting for a little over one-third of
GDP. Industrial activity mainly involves the processing of agricultural
products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has
considerable scope for exploiting its potential in hydropower, with an
estimated 42,000 MW of feasible capacity, but political instability hampers
foreign investment. Additional challenges to Nepal's growth include its
landlocked geographic location, civil strife and labor unrest, and its
susceptibility to natural disaster.
|
Source
: CIA |
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
It is a limited company incorporated at Kathmandu under His Majesty
Govt.
Act No. P0991 of 9.03.2007
Chairman
Mr. Balanand Paudel
Secretary, Ministry of Energy
Member
Mr. Krishna Hari Banskota
Secretary, Ministry of Finance
Member
Mr. Sujit Acharya
Member
Mr. Subash Karmacharya
Member
Mr. Kedar Prasad Sanjel
Member Secretary
Mr. Deependra Nath Sharma
Share hold by govt. of Nepal
S.K. Ratna & Co.., Kathmandu (Nepal)
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:
First Stage : Upper Tamakoshi Hydroelectric Project (UTKHEP) by 2015,
Second Stage : Diversion of Rolwaling River to the UTKHEP intake pond by
2017, and
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.
|
Particular |
July 15, 2011 |
July 15, 2010 |
|
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 |
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Deferred Tax
Liability (Net) |
0.01 |
0.01 |
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Total Liabilities |
18.86 |
8.30 |
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Application Of Funds |
||
|
Gross Block |
1.28 |
0.88 |
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Less: Depreciation |
0.43 |
0.24 |
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Net Block |
1.71 |
1.12 |
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Current Assets, Loan and Advances |
||
|
Inventories |
30.24 |
22.01 |
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Sundry Debtors |
10.84 |
9.63 |
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Cash And Bank
Balances |
0.14 |
0.82 |
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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 |
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Net Current Assets |
51.48 |
52.3 |
|
Miscellaneous Expenditure |
0.04 |
0.04 |
|
Total Assets |
103 |
104.640 |
|
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.65.96 |
|
|
1 |
Rs.102.91 |
|
Euro |
1 |
Rs.86.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.