MIRA
INFORM REPORT
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Report Date : |
21.02.2014 |
IDENTIFICATION DETAILS
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Name : |
BHUTAN HYDROPOWER
SERVICES LTD. |
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Registered Office : |
Post Box No. 164, Thori Lam, Lekithang, Gelephu, Sarpang: Kingdom of |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.05.1989 |
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Legal Form : |
Limited Company |
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Line of Business : |
· Repair and reclamation of all types of hydro runners, its associated components with hard coating facilities; and · Repair and rewinding of electric motors. |
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No. of Employees : |
1200 |
RATING & COMMENTS
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Bhutan |
B2 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
BHUTAN - ECONOMIC OVERVIEW
Bhutan's economy, small and less developed, is based on agriculture and forestry, which provide the main livelihood for more than 40% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India's financial assistance. The industrial sector is technologically backward with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Model education, social, and environment programs are underway with support from multilateral development organizations. Each economic program takes into account the government''s desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. The import of equipment and fuel to build hydropower plants is leading to large trade and current account deficits, though new hydropower projects and electricity exports to India are creating employment and will probably sustain growth in the coming years. GDP has rebounded strongly since the global recession began in 2008
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Source
: CIA |
Company Identification Details
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Enquired Name |
: |
Bhutan Hydropower Services Ltd. |
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Correct Name of Company |
: |
Bhutan Hydropower Services Ltd. |
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Registered Office |
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Post Box No. 164, Thori
Lam, Lekithang, Gelephu, Sarpang: Kingdom of Bhutan Tel: +975-06-252778/785;
Fax: +975-06-252779 Email: bhsl@bhsl.bt |
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Industry |
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Power |
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Nature of Activity |
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Bhutan lies within
the young growing Himalayas, hence geologically it is very fragile. Therefore,
during monsoon seasons, the rivers are laden with sediments. These fresh
sediments mainly carry quartz and feldspar having hardness of 7 and 6
respectively, on the Moh scale. They are considered, irrespective of their
shape and size, the most damaging amongst all the silt minerals. These hard
particles striking the base material along with the jet can cause severe wear
on turbine components like the runners, nozzles, seals, etc. The wear and
tear on these components is heavy during the four months of the monsoon,
requiring repair and reclamation. Therefore, periodic reclamation of
underwater components such as the runner is required more often than usual.
As an example, a turbine component in the region must be reclaimed every 1.5
to 2 years. The 1st Druk Green
Technical Conference was convened from 14th - 16th December, 2013 at CHP,
Chhukha. The Theme of the Conference was "25 Years of Learning",
mainly commemorating 25 Years of service excellence of the Bhutan's first
mega hydropower plant, the 336 MW Chhukha Hydropower Plant - in the Service
of the TSA-WA-SUM. The Technical
Conference was a huge success, as it saw 48 papers, authored and co-authored
by members within Druk Green and from its Subsidary Companies like Dagachhu
Hydro Power Corporation and Bhutan Hydropower Services Limited. The CEO, BHSL
authored and presented the concept paper titled "An Integrated
Hydropower Service Center in Bhutan - Challenges and Opportunities", and
co-authored two technical papers titled "Analysis of Changing Vibration
and Temperature in a Vertical Hydro Generator" with Sherub Tharchen,
Analyst, CoEVaTA, CHP; and "Unbalanced Magnetic Pull in a Vertical Hydro
Generator" with Rabi Pradhan, Analyst, CoEVaTA, CHP. The two technical
papers were also recipients of cash prizes amongst the 30 papers recognized
for such prizes. The integrated
runner reclamation Center shall comprise of diagnostics of runner failure,
determining the root cause failure, welding and re-building of runner, heat
treatment of runner, stripping and hard coating facilities, static balancing
of runner, and quality inspection. Until now, reclamation, repair,
fabrication and machining of critical hydro components are being send to
outside facilities not only at very high costs, but the conditions and
qualities are also dictated by the service providers. Observing a simple
ceremony at the BHSL's corporate office in Gelephu, the Company's Website and
Logo was launched on the 30th of October, 2013. The launch ceremony was
preceded by Lam Thinley Wangdi, the management, and members of BHSL. The design and
setup of the website was carried out by ICT Division, Druk Green, as a
special support to BHSL. On the occassion,
the Chief Executive Officer, Tenzin thanked all the team members for their
teamwork, cooperation, and hard work that has enabled to achieve yet another
important milestone. He also emphasized on the responsibilities of the
members as founders of the JV Company, and urged all members to leave behind
a good legacy. He also mentioned that the website and logo would represent
BHSL globally its core values, mission and vision and the business. On behalf
of the Shareholders, Board of Directors and on his own behalf, he thanked all
those who have contributed towards the successful launch of the website and
the logo. Druk Green &
ALSTOM Joint venture. |
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Official Company Data
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Legal Form |
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Limited Company |
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Corporate Identity Number (CIN) |
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C-2012 |
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ROC Code |
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Thimpu |
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Registration Date |
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12-05-1989 |
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Employee |
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1200 |
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Auditor |
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Deloitte Haskins & Sells |
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Bankers |
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Bank of Bhutan
Ltd. |
Financial
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Share Holder : All share hold govt. of Bhutan.
Directors
Dorji P. Phuntshok
Chairman
Tenzin,
CEO/Secretary to the
Board
Dasho Dawala
Member
Ugyen Namgyal
Member
Sunand Sharma
Member
Marc Fleuret
Member
M.L. Gupta
Member
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.28 |
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1 |
Rs.103.84 |
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Euro |
1 |
Rs.85.70 |
INFORMATION DETAILS
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.