This action might not be possible to undo. Are you sure you want to continue?
Highlights 2010 | 03 Our Presence | 04-05 Corporate Profile | 06-07 Chairman’s Message | 08-09 Directors’ Report | 10-17 CEO’S Prespective | 18-19 Management Discussion and Analysis | 20-39 Corporate Governance Report | 40-45 Shareholders Information | 46-47 Five Years Financial Highlights | 48-49 Awards and Recognitions | 50 Financial Statements Auditor’s Report | 52 Balance Sheet | 53 Profit and Loss Account | 54 Statement of Changes in Equity & Cash Flow | 55 Schedules | 56-68 Significant Accounting Policies and Notes to the Accounts | 69-78 Consolidated Financial Statements | 79-82
To be a leading enterprise in the power sector with excellence in providing innovative and quality products and services to meet the growing demand for efficient and clean energy.
n be a competitive hydropower developer and an electric utility; To n secure sustainable performance of our investments; To n be committed to protect the environment; To n practice corporate social responsibility by serving the communities where To we do business; n provide a safe, healthy and fulfilling work environment to our employees and To n maximize value for all stakeholders. To
LED- Future of Lighting
constrUcting green bUilDing for its corporate office UpgraDing anDhiKhola project
restrUctUreD engineering bUsiness as a separate coMpany Developing 140 MW loWer Manang MarsyangDi project
Developing Kabeli, nyaDi projects throUgh spv
1,744 2,264 2,341 1,992 1,882
Dividend Per Share (NRs)
* includes 10% stock dividend
Investments (in NRs mill)
Total Assets (in NRs mill)
447 375 393
Profit Before Tax (in NRs mill)
Revenue (in NRs mill)
Earning Per Share (in NRs mill)
project DevelopMent agreeMent for Kabeli-a signeD
ppa signeD With nea for anDhiKhola UpgraDing
national bpa aWarD 5th tiMe in a roW froM ican
Butwal Power Company Limited Annual Report 2010
W es te r
Darchula Bajhang Bajura
dW est ern Re gio n
Jumla Dadeldhura Doti Achham Dolpa Mustang Jomsom Kanchanpur Kailali Dailekh Jajarkot Rukum Surkhet Myagdi Bardia Salyan Rolpa Banke Nepalgang Bagung Kaski Pokhara
We ste rn
Gorkha Lamjung Tanahu
Arghakhanchi Palpa Kapilbastu Rupandehi Butwal Nawalparasi Chitwan
Butwal Power Company Limited Annual Report 2010 Existing Plant Under Development Under Licensing Distribution Area Office Kabeli .C Kabeli .A n Cen tra Rasuwa Tamor l Re gio n Eas te rn R egio n Nuwakot Sindhupalchowk Salukhambu Lukla ding KTM Bh akt ap ur Dolakha Ramechhap Shankhuwasabha Taplejung Palanchok Khotang Rautahat a Bara Sindhuli Mahottari Sarlahi Udayapur Dhanusha Dhankuta Pa n Bhojpur Siraha Sunsari Saptari Morang Biratnagar Jhapa ch th ar Makawanpur Terhathum Okheldhunda Ilam 5 our presence Patan .
: 17 February 1993 (2049/11/06 BS) Date privatised: 29 January 2003 (2059/10/15 BS) registered / corporate office: Gangadevi Marga . statutory auditor: PP Pradhan & Co. Bank of Asia Nepal Ltd. Nepal pan /vat no: 500047963 bankers: Himalayan Bank Ltd.. Li. No. as BPCL 6 . corporate information name: Butwal Power Company Limited registration no. Lalitpur. Nepal internal auditor: JB Rajbhandari & DiBins..313. and several other projects under licensing stage. It provides engineering and consulting services through its subsidiary Hydro Consult and has repair and manufacturing facility for hydromechanical components of hydropower projects under its subsidiary Nepal Hydro & Electric. Kathmandu.. Nepal Investment Bank Ltd. 3-049/50 Date incorporation: 29 December 1965 (2022/09/14 BS) Date converted into public ltd. Sunrise Bank Ltd. Nepal stock exchange listing: Nepal Stock Exchange (NEPSE). BPC own shares in Himal Power which owns and operates 60 MW Khimti Hydropower Plant. Kathmandu. Buddha Nagar. BPC on its own and through subsidiaries is currently developing four hydropower projects with manned aggregate capacity of 210 MW.: Pa. It owns and operates 21 MW generation capacity and provides electricity directly to 36000 retail customers primarily in the rural areas in mid western and western Nepal in addition to bulk sale to the state utility.Butwal Power Company Limited Annual Report 2010 corporate profile BPC was incorporated in 1955/56 as an electric utility for generation and distribution of electricity for Butwal city located in the western region of Nepal.
Butwal Power Company Limited Annual Report 2010 Nyadi Hydropower Project Intake Area 7 .
it will also bring in enormous responsibilities and challenges for the management for efficient execution and successful completion of the projects in the current political environment. 0. I would like to bring your notice that the 93MW Lower Manang Marshyangdi Project is being optimized to approximately 150 MW and the detail project report will be ready by the end of 2011. without any equity partners. which I believe will give immense pleasure to the shareholders. 24. The company is gearing up to take up the project on its own. I am sure that management team is geared up for taking up the challenges and once again demonstrates excellence.94 million. The Andhikhola Upgrading Project has moved to construction after obtaining license and execution of PPA.1 million and net profit after bonus and tax of Rs. 28. 479. The Company recorded turnover of Rs. On upgrading Andhikhola Power Plant will contribute approximately 22 GWh of additional energy to the INPS. though the net standalone results indicate decline because of higher royalty payments and taxes applicable to Jhimruk Power Plant on completion of fifteen years of successful operation. The engineering business has been separated with effect from 1st of Shrawan 2066 and is running efficiently recording turnover of Rs. In terms of operations and financials.1 million in the previous fiscal year.80 million without the engineering business. Parallel construction of several projects is sure to bring excitement for the company and shareholders. which contributed Rs. Nyadi and Kabeli projects are in advance stage and all set to go under construction in 2011 which will take the aggregate generation capacity to 82 MW on their commissioning.Butwal Power Company Limited Annual Report 2010 chairman’s message Dear Shareholders. The company has made significant progress in development of the projects. Padma Jyoti Chairman 8 . there has been improvement. It gives me great pleasure to share with you the achievements and of our company’s performance in the previous fiscal year and in the last few months of the current year.
” — Padma Jyoti. Chairman 9 . it will also bring in enormous responsibilities and challenges for the management for efficient execution and successful completion of the projects in the current political environment.Butwal Power Company Limited Annual Report 2010 “Parallel construction of several projects is sure to bring excitement for the company and shareholders.
611 161.2 million from Rs.896 74.7%.29 1. The generation business had to supply 10.04% than last year’s generated energy of 64.721 273.44 GWh energy was sold to NEA. 254. an increase by 5. Financial Performance The turnover of the company has increased to Rs.98%. which is an increase by 0.67 GWh.737 28.34%. a reduction of 23. The net profit after bonus and tax declined to Rs.5 GWh. Low discharge in Jhimruk River had its effect on generation from Jhimruk Power Plant.9 million as compared to Rs.108 3. which is being carried out through a subsidiary company.280 169.23 GWh with a plant load factor of 59.94% despite separation of the engineering business.148 314. f/y 2066/67 387.630 f/y 2065/66 375.688 156. ‘000 unless specified otherwise) particUlars Income from the sale of electricity in bulk Income from the retail sale of electricity and services Income from engineering and consultancy services Income from Management and Technical Support Services Total operating income Total operating expenses Gross operating profit Other income Administrative and other expenses Net profit before appropriation Earnings per share in NRs.4% more energy to meet the requirement of consumers connected to the distribution network as compared to the previous year. The profit before bonus and tax amounted to Rs. Online directors’report Business Operations GeNeRATION BuSINeSS Jhimruk and Andhikhola Power Plants operated efficiently and generated altogether 101.6 million of previous year.671 17. 479.809 206. generation.6 million. Repair and maintenance works of the power plants were carried out as per the preventive and predictive maintenance plans.546 10 .Butwal Power Company Limited Annual Report 2010 Dear Shareholders. Your Board has pleasure in presenting the annual report and the audited statements of accounts of the company for the year ended July 16. 291.1% from the previous year.740 470.103 63.233 24. Net worth in million NRs. 2010. registering a marginal growth of 1. 17.653 291.7% than last year’s THe FINANCIAl ReSulTS OF THe COmPANy ARe BRIeFly SummARIzed BelOw.5 million of previous year registering a decline of 18. Andhikhola Power Plant could generate 38. (The figures are in NRs. 313.68 GWh energy with plant load factor of 86.9 GWh.540 160. 224.75 1.9% from the previous year. a decrease by 2.55 GWh energy was supplied to distribution business for distribution to the consumers within the distribution network of the Company and 81.471 224.592 34.241 479.8 million from Rs. The reduction in profit is attributable to the increased tax liabilities and royalty payments from income of Jhimruk Power Plant which has gone into its 16th year of operation. Jhimruk Power Plant could generate 63. This resulted in reduced sale to NEA by 1.088 151. 470.48% than previous year’s generated energy of 36.
which is less than NRs 37. The net worth of HPL as on July 16. 6.1 million. 225.66 million loss of F/Y 2065/66. (HCPl). 3014 consumers were added and 1186 consumers were converted from cutout category to the metered category. recorded electricity sales of NRs.1 million and 11 .99 million and that for BPC’s investment value in BPCSL stands at NRs 10. 9. in 2009. which owns and operates the 4 MW Khudi Hydropower Plant. Operating Subsidiaries and Associates Himal Power limited (HPl). Hydro lab Pvt. The net worth of HCPL as on July 16.307 in the F/Y 2066/67. The net worth of HLPL as on July 16.691 million and that for BPC’s investment value in HPL stands at NRs 1. 2010 is NRs 197. 2010 is NRs 6. BPCSL recorded a turnover of NRs. The net worth of BPCSL as on July 16. Palpa. 2010 is NRs 35.55. registered a net profit of NRs.29 million.3 million and registered a net profit of NRs. HLPL’s turnover was NRs 15. The net worth of NHE as on July 16. (KHl). HCPL recorded turnover of Rs. Hydro Consult Pvt. increase in staff cost and scattered consumer base in rural area resulted in revenue deficit and loss from distribution business. The distribution business spread over four districts. dISTRIBuTION BuSINeSS that for BPC’s investment value in NHE stands at NRs 102. Syangja.77 million. the engineering wing of BPC. The net worth of KHL as on July 16. was taken over by BPC by acquiring majority ownership through transfer of assets of BPC Hydroconsult. 2.3 million in the F/Y 2066/67 and it recorded a net profit of NRs. the hydromechanical and electro-mechanical equipment manufacturing company. The reliability of the distribution system was maintained at 96%.96% against the sale of last year’s 13.32 million in the F/Y 2066/67. 2010 is NRs 10. ltd.82 million and that for BPC’s investment value in KHL stands at NRs 53.51million and that for BPC’s investment value in HLPL stands at NRs 7.52 million. 0. (HlPl) provided specialized research and consulting services in hydraulics and sediment analysis to various projects.35 GWh. including model study of headworks and allied areas. continued to expand its distribution network and consumer base under the Rural Electrification Expansion Project. reporting a loss of NRs. recorded a turnover of NRs.129 million. The low consumer tariff rate. 6.68 GWh. 79. 1.29 million.8 million as dividend during F/Y 2066/67 from HPL. The profitability of generation business remained at 84%. energy to its retail consumers with an increase of 9.99 million. which owns and operates the 60-MW Khimti I Hydropower Plant. The average per unit distribution cost has been increased from Rs.Butwal Power Company Limited Annual Report 2010 Sediment Monitoring System and Debris Removal Mechanism have been installed at Jhimruk Hydropower Plant. 2010 is NRs 88. BPC Services ltd. The total consumers count at the end of F/Y 2066/67 stand at 34428. It also provided technical service to Jhimruk Downstream Mitigation Program. BPCSL provided operation and maintenance service to Khudi Hydropower Plant. During the year. 24 million with net profit of Rs. in the F/Y 2066/67.65 million in the F/Y 2066/67. 1. (NHe). aiming at operation of independent engineering company with service excellence. ltd. The plant was in continuous operation and is generating satisfactorily based on the water flow in the river and there had been no major shutdowns as was in previous years.46 to Rs.348 billion in the F/Y 2066/67. 2010 is NRs 10. 944. 137. The company sold 14.85 million. Pyuthan and Arghakhanchi. Aggregate Technical and Commercial (AT&C) loss was contained at 10.53 million. Nepal Hydro & electric ltd. BPC received Rs. (BPCSl) aims at providing operation and maintenance service to the power plants and technical and other services to the companies or institutions in allied area of hydropower development. 19. The transformation capacity at Jhimruk Power Plant has been upgraded to 6/8 MVA from 3 MVA. which covers approximately 2% of the total households electrified through Integrated Nepal Power System (INPS).1 million and a net profit of NRs.6%. Khudi Hydropower ltd. an associate company.65 million and that for BPC’s investment value in HCPL stands at NRs 8.
Anup Kumar Upadhyay. 12 . Ratna Sansar Shrestha. Ganesh Lal Shrestha.Butwal Power Company Limited Annual Report 2010 FROm leFT TO RIGHT: Pradeep Kumar Shrestha.
Butwal Power Company Limited Annual Report 2010 Bijaya Krishna Shrestha. Padma Jyoti. Nirmal Pradhan. Bijaya Bahadur Shrestha and Rajib Rajbhandari 13 .
14 The TOR for IEE has been approved by the Ministry of Energy and IEE is under progress as per the approved TOR. which is located at the southern part of Manang District. The power purchase agreement (PPA) with Nepal Electricity Authority (NEA) is under finalization. (JIdCO). Keton Hydropower ltd. The prefeasibility study of the LMMHP has been completed and the project looks promising. 72.4 MW Andhikhola Upgrading Project (AUP) has been received from the Ministry of Energy in November.4 million in Keton as equity investment.24 million and that for BPC’s investment value in JIDCO stands at NRs 2. 2012. sign PPA with NEA and conclude the financial closure. KEL has plans to obtain approval on study reports from Ministry of Energy and World Bank. own. build. 2010 is NRs 12. 8. BPC received a production survey license for the 93 MW Lower Manang Marshyangdi Hydropower Project (LMMHP).Butwal Power Company Limited Annual Report 2010 directors’report Jhimruk Industrial development Center Pvt. the company has adopted a stable dividend policy and accordingly. The investments will contribute to creation of wealth for shareholders in the long term. a corporate social responsibility initiative of BPC. 2010. issue of right . 2010. (Keton).94 million.6 MW. BPC has invested NRs. In the year 2011. The contracts for civil works. has completed the feasibility study and submitted the feasibility study report to DoED. The feasibility study report has indicated that KHP can be optimized at 37. However. KEL has planned to avail 40% of the project cost as debt financing from World Bank through the Power Development Fund. It is targeted to complete the financial closure and start construction of the project by the end of 2011. a project company has been established for development of Kabeli-A Hydroelectric Project (KHP) on finance. Further. Further. The capacity of the project has been optimized at 30 MW. The feasibility study is ongoing and is expected to be completed by 2011. continued to provide trainings in various skill and enterprise development.1million in KEL as an equity investment as on July 16. a special purpose company established to develop the Marsyangdi-III Hydropower Project. BPC has invested NRs. The project is being financed by International Finance Corporation (IFC) and a consortium of local banks led by Rastriya Banijya Bank. the Board has recommended a cash dividend of 20% and bonus shares of 10% of the paid up capital from the profit of the company. a special purpose company established to develop the Nyadi Hydropower Project (NHP) has performed satisfactorily in the F/Y 2066/67.915 million in NHL as equity investment. JIDCO’s turnover was NRs. The construction of access road and bridge over the Marshyangdi River has started.77 million. The approval for scoping of initial environmental examination (IEE) has been obtained from the Ministry of Energy. The survey license was obtained from the Ministry of Energy in March. The net worth of JIDCO as on July 16.0. 2. operate and transfer basis. ltd. Land acquisition of the project and access road excluding the land to be taken from the Government on lease has been completed. The construction license of 9. The construction work of AUP is expected to start by January. hydro-mechanical works and electromechanical works have been finalized. Recently the PPA has been signed with NEA. IEE has been updated in line with the upgraded capacity. BPC has invested NRs. The IEE of the project will be conducted and the process for signing PPA with NEA and for obtaining Generation License will be initiated in the F/Y 2067/68. 2011 and complete by March. dividend The Board is aware of the investment requirements for the projects under development and also for the further projects which the company is planning to undertake. Right Share Considering the fund requirement for the projects being developed by the company.69 million in the F/Y 2066/67 and it reported a loss of NRs. Status of Projects/Joint Venture Companies Nyadi Hydropower limited (NHl). the TOR for environmental and social impact assessment (ESIA) study has been approved by the World Bank and the ESIA study is progressing satisfactorily. 2010 for carrying out the update on feasibility study of the KHP and the update works have been completed. 14. The feasibility study for the optimized capacity has been completed and detail design of the project is under progress. Kabeli energy limited (Kel).
However. Industrial Associations and employee Relations BPC is associated with the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) and the Independent Power Producers’ Association. However. F/Y. 83. five minor injuries have been reported. There were 294 employees. 2010 in place of Mr. assess. Trainings were imparted for capacity building of the employee for the professional growth of the employees as well as to meet requirement of the Company. The Budget Committee assisted the Board by reviewing. BPC celebrated the World Environment Day. at the end of the F/Y 2066/67. plan. mission. The business units have carried out the business activities in an environmental friendly manner. Ganesh Lal Shrestha as Director on the Board of this Company with effect from September 22. Board of directors and Committees There were changes in representation in the Board during the year. Mr. listing of stock dividend and raise in salaries necessitated by inflation in the country. business principles and policies.25 million which is 18. as the construction plan of the projects has shifted due to current political and investment situation of the country. . Pradhan for his contribution to the Company during his tenure. The mechanism for addressing the issues. The Audit Committee played an important role in strengthening the internal controls and good corporate governance. BPC gives priority for HSE. BPC’s corporate value framework comprises of vision. grievances and concerns of the employees has further strengthened after appointment of the employee relation officer. issue of right shares is not an urgent need.29% higher than the last Risk management The risk management is an integral part of BPC’s business operations. The management expenses in F/Y 2066/67 totaled NRs. Compliance to corporate governance standards is reported separately as Corporate Governance Report. Ranjan Lohar. Corporate Governance BPC has adopted corporate value framework to ensure good corporate governance in the Company. The remaining process for issuance of right shares will be as per the investment requirement. During the year health base line data has been established though a well planned medical checkup for all employees and awareness programs on occupational health and safety has been organized. 15 directors’report shares was approved by the 17th annual general meeting (AGM). 270 male and 24 female. mitigate and monitoring of the risk associated with the activities being carried out by the different business units across the Company. We would like to welcome the new Directors and extend our thanks to Mr. BPC has adopted an Integrated Quality and Environmental Policy. Gyanendra Lal Pradhan. 2010 elected Mr. List of top management and senior executives is included in the Corporate Governance Report. The process for issuance of right shares in the ratio of 3:2 was initiated and is ongoing. Shangri-La Energy Limited has nominated Mr. The Company faced significant turnover of the employees because of entry of many international hydropower developers in the country and deteriorating environment for development of new projects. management BPC is managed by a strong team of professionals led by Chief Executive Officer. monitoring and controlling the budget of the Company. 2010 in association with the locals for bringing awareness on environment. corporate governance code and code of conduct and ethics. No serious injuries have been reported during the year. The 17th Annual General Meeting of the Company held on January 8. Safety and environment (HSe) With the mission to provide fulfilling work environment within the Company. Enterprise Risk Management has been implemented to identify.Butwal Power Company Limited Annual Report 2010 Health. Nepal (IPPAN). Good management employee relationship has been maintained. Nirmal Pradhan as Director to represent public shareholders for four years. The increase is an account of business expansion. values.
China is the largest hydroelectric power generator in the world. which are analyzed and strategies to manage those risks are worked out. Canada. financial and accounting procedures. Nepal started hydroelectric generation in 1911 AD but till date has been able to harness only about 2% of the techno-commercial hydroelectric potential. Nepal is located between two fast growing big economies. However. Norway. During last couple of years. Brazil. The recommendations of the internal auditor and the decisions of the Audit Committee are implemented effectively. Accelerated development of hydropower is required not only to meet the energy deficit but to fuel the economic growth of the country. fixed the tariff rates for the purchase of energy form the hydropower projects up to 25 MW installed capacity. the Ministry of Energy issued internal guideline for license management process.22 MW in the F/Y 2009/10.000 MW installed capacity. and NEA. Shareholders’ Suggestions Suggestions from Shareholders are taken in the right earnest and all possible efforts are put in to implement them. majority of them are stuck with financial closure. Transactions with Subsidiaries All major transactions. The utilization of hydropower potential complemented by the energy deficit in the neighboring countries can propel the economic growth multifold. regulations and instructions are defined in line with the nature of business and need. Twenty seven PPAs have been signed with various companies for 136. India ranking as the seventh largest hydroelectric power generator in the world generated 115. Business environment and Investment Climate The Government of Nepal has set a target for developing 25. Looking into the utilization 16 .3% in 2010.05 TWh energy from around 200. China and India has utilized 22. Internal Control BPC has implemented an Integrated Quality and Environmental Management System. The Company has taken due care of the risks and addressed in time. on their merits. The Electricity Bill and the Electricity Regulatory Commission Bill has been tabled in the Legislative Parliament. The internal rules. Hydropower and Nepal’s Growth Prospect In the world energy consumption record.Butwal Power Company Limited Annual Report 2010 directors’report The major risks associated with the Company’s business activities are reported to the Board by the Management. China and India. However. are disclosed in its financial statements for the FY 2066/67. internal audits are being carried out periodically by an independent auditor for assessment of the internal control and risk management of the company’s assets. Statutory Audit M/s PP Pradhan & Co. which BPC undertook with its subsidiaries and associated companies. the GoN’s undertaking. The auditor has issued an unqualified report on financial statement of the Company. Paraguay. some improvements have seen in the hydropower sector in Nepal. hydroelectricity has contributed only 2. audited BPC’s books of accounts in the FY 2066/67. of hydro potentiality. Norway is on the top and other countries are focusing on harnessing hydro potentiality for reducing the percentage of consumption of energy from other sources.80% hydroelectric potential respectively. Switzerland and Venezuela meet majority of the energy need from hydroelectric power. there is energy deficit in India and is growing further. The country is facing energy crisis and the electrified consumers face load shedding to the extent of 16 hours per day during winter season.6 TWh energy from around 34. which generated 652. Only six countries in the world viz. In addition.25% and 15.000 MW generating capacity and to achieve electrification of the entire country by 2020.000 MW installed capacity in 2009. In the same year.
Thanking you. and others institutions and individuals who have contributed directly or indirectly towards the betterment of the company in the F/Y 2066/67. Further. the priorities are to develop the projects-in-hand and to expand the business of subsidiary companies. . Nepal Electricity Authority. 2011 17 directors’report The political transition. inadequate legal instruments. Addition of 3900 new consumers to its distribution network under the Rural Electrification Expansion Program (REEP) has been planned. contractors. Management Team and staff for their dedication and contribution towards the progress of the company and the shareholders for their confidence in us. Nepal (IPPAN) to improve Nepal’s business environment and investment climate. Acknowledgement We are grateful to the Government of Nepal. for start of construction of these projects by 2011. BPC is an active participant in these development initiatives. Andhikhola Upgrading Project will be under full swing construction. Preconstruction works of Kabeli-A Hydroelectric Project (37MW) and Nyadi Hydropower Project (30 MW) will be expedited Padma Jyoti. low tariff rates. On behalf of the Board of directors The year Ahead In the F/Y 2067/68. poor interconnection facilities for power evacuation. politicized labour force and crisis in financial market are the key bottlenecks in development of the hydropower sector in Nepal. clients. associate organizations. The feasibility study and EIA study of the Lower Manang Marsyangdi Hydropower Project (93 MW) will be completed in 2011. suppliers. long bureaucratic processes. unreasonable demands from local people. efforts will be made to add new hydropower projects in BPC basket. the Ministry of Foreign Affairs-Norway. Chairman January 7. bankers. vendors.Butwal Power Company Limited Annual Report 2010 Initiatives are being taken jointly by Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and the Independent Power Producers’ Association. We thank the members of the Board Committees. auditors.
With changes in the Board of our subsidiaries and initiatives to improve corporate governance and strengthening of management team. we expect better performance in the coming years. we seek to be transparent and pioneer. The bottom line in project development is safety. Maximizing use of IT infrastructure is another important area for us. BPC has been able maintain its revenue from operations and earned 479. Traditionally BPC is not a seller of projects. retaining talent pool. Yet. To address the challenges in today’s varying economic cycles and difficult investment climate. We restructured our engineering business and is now being run as independent engineering and consulting company. We expect additional revenue of 6% from this in the coming years. deliver as expected. However. cost competitiveness. employees and assets. managing funds for capital investments. Health Safety and Environment is critical to us. Both our generation assets are out of tax holiday period. procurement. The priorities are on managing costs and protection of margins. managing cash flow and working capital. three projects with an aggregate capacity of more than 70 MW will be under construction by the end of 2011. starting this year we have started preparation of consolidated financial statements. this year we are implementing OHSAS. our focus is on optimization of the limited resources we have. and are subject to increased taxation and royalty payments.Butwal Power Company Limited Annual Report 2010 ceos’perspective 2009-10 has been a mixed experience for us with several transition events and unsettled national governance. We are not sure if the tariff levels will be reviewed and adjusted under the regulatory framework (which is under discussion at the parliament). The consolidated networth at fair market value stands at 3. capital. minimal environmental impacts. increasing cost of distribution and our goal to enhance customer service has its’ impact on the earnings. and that the projects we build. This has made our belief firmer that strategic plans needs continuous review and reset with regard to investment opportunities. We prefer to use standard well proven software packages and keep the customization to a minimum to take advantage of the best industry practices and to have smooth transition of data from project to operation phase. Generation business has been successful in securing arrangement for additional off-take of energy. on project development-our strategy is to adopt a flexible project to project approach on joint ventures and alliances with focus on balanced portfolio of projects which reflects our strategic direction on multiple projects and diversified investments. To reinforce this. but we expect that at least the cost of service model will be adopted to enhance the quality of service and competitiveness. the projects have advanced and looking forward.81 million. ethical standards to build up on our . Historically. 18 All our operating subsidiaries performed better than the previous year. Our consolidated networth grew by 4. The clientele base includes private domestic hydropower developers. Our engineering business team has stabilized the engineering and consulting business.58 billion.3%. maximizing the use of generation assets. We have adopted a comprehensive corporate value framework to strengthen our governance system. and efficient execution of projects. Last year we expected to take couple of projects under construction. however. The historical energy tariff. an important factor in selection of contractors in addition to their project management capabilities and quality delivery. Several projects are under execution and team is focused on capacity building to capture major share of the domestic market. government agencies and a developer in Kenya. We keep safety. the project construction had to be deferred as the projected rate of return at the ongoing lending rates and tariff levels would not have delivered expected return to the shareholders.
The government has embarked aggressive vision to develop 25K MW in next 20 years.49 MW capacity. there is enormous opportunity for growth both for ‘Team BPC’ and all stakeholders. There is potential of earning additional revenue from carbon credits with increased focus on environment. The private sector has key role to play in realization of the vision. the private sector must be encouraged to take major position in the generation business and the government takes a position to create an enabling environment and development of the transmission network. around 1. global warming and linkage to the regional grid.2% of the installed capacity. The power sector requires huge capital outlay. as involvement of private sector not only reduces funding constraints but also has several other advantages like bringing competitiveness in the projects. though restricted increased by 9%. If higher growth trajectory is to be achieved. While this brings in challenges.5% growth. We are in the transition/take off phase with several projects to go under construction in parallel. Nepal economy suffered from the unstable regime and could barely reach the previous years’ growth rate. are positioned to deliver and create value for our investors. While Asia flared better than the rest of the world with 9. efficient execution. Thus it is essential that private sector participation be promoted if the demand supply gap in power sector has to be managed. Ranjan lohar Chief Executive Officer 19 . optimization in capacity utilization. lower cost of generation. BPC can make significant contribution to the power sector and national economy thereof. and it is not possible for the government to fund the growth of the sector alone. The liquidity crisis with double digit inflation at around 11% had its toll on the infrastructure development. technological advancement. We. A favorable investment climate will attract multilateral financing agencies to support hydropower development and reduction of carbon footprint. This needs sector reforms to make the power sector and more specifically the generation vertical more attractive for the private sector.Butwal Power Company Limited Annual Report 2010 business principles and corporate vision. while the demand. We are performance focused and believe in sustainable development. All of us are committed to internalize the value framework to drive the company to greater heights and success. The power sector saw a meager addition of 8.
Butwal Power Company Limited Annual Report 2010 management discussion & analysis economic Outlook The world economy that had shrunk in the year 2008/09 expanded at an annual rate of about 5. High inflation and low economic growth rate has raised the necessity of political stability and greater reform initiatives on development.S. electricity. along with gas and water. and etc. Realizing that hydropower can be the growth engine for economic development. But the world financial stability suffered major setback with increase in market volatility and drop in investor confidence.65% Other Sources 0. Euro depreciated by about 15% while the U. there is a clear deficit of 187 MW.28 697.5% while inflation remained high at 11. however.5% share in the overall GDP of the country.39 689. Volatility in currency as well as commodity market remains elevated. has just 1.38 721.8 91.28 600 611. Robust economic activities in Asian giants like India and China have helped growth in Asia. Just 8 MW of installed capacity has been added to the system during the year.47 617. Growth in commodity prices has moderated. hydropower has been prioritized over other alternatives. declined by 0. Water Resources Strategy 2002 had sought to develop hydropower to meet the domestic demand as well as export. is yet to be enacted.4% point than that of 2008/09 and is estimated to be 3. On an average. distribution.54 0. which contained immediate. dollar and Yen had appreciated briefly before returning to the previous levels. Nepal Electricity Bill. With no significant projects getting added to the INPS.1 0. Prices in many stock exchanges have fell including that of Nepal. transmission.65% Hydropower (On Grid) 639. trading. the demand supply gap is bound to widen in 1000 800 603. The world economy has begun to emerge from the greatest recession since the World War II.68% INSTAlled SOuRCeS OF eleCTRICITy GeNeRATION (IN mw) Business environment By the end of the fiscal year.35 812. With a peak demand reaching 885 MW in the year.2% in 2009/10. Oil price remained broadly in the range of $ 70-80 per barrel though the demand strengthened. demand is increasing at a rate of 9%. These include facilities like income tax holiday for 7 years to provisions for Hydropower (Of Grid) 4.01% Thermal 53. This expansion rate is however higher at around 9% in the emerging Asian economy.5 % in the fiscal year. the total installed generation capacity in Nepal reached 697 MW. Nepal Electricity Regulatory Bill 2064 tabled at the parliament for facilitating electricity production.41 7. shortterm and long-term programs. hydropower contributing 644 MW. National Electricity Crisis Resolution Action Plan was brought in 2008. Though there is high potential for hydroelectricity generation. the coming years. GDP growth rate of Nepal. To combat the heavy loadshedding. There are a few projects under construction in the country and only about 44 MW is likely to be connected to INPS by 2011.50 885.52 400 200 0 2005/06 2006/07 2007/08 2008/09 617.85 2009/10 demANd/INSTAlled CAPACITy (IN mw) 20 . The instability prevalent in the country has had its effect in the growth rate of Nepal.73 648.
600. Improved performance of Khudi Hydropower Plant in the year resulted in the decrement in provision for loss in investment by 65. 291. In addition to Generation and Distribution businesses.7%. 2005/06 2006/07 2007/08 2008/09 2009/10 eNeRGy demANd/ SuPPly (IN Gwh) SummARy OF SeGemeNT wISe FINANCIAl ReSulT particUlars Income Expenditure Income from operation Other income Other expenses Net Result before bonus and tax total 479.689.045) (16) 4.000 2. The budget for the coming year has mentioned that construction of medium and large sized reservoir project will be initiated with public private partnership. marking an increase of 1.40 Operations of Company FINANCIAl CONdITION ANd FINANCIAl PeRFORmANCe BPC made an operating income of NRs.79 3. major reason being the double digit inflation in the country.280 169.045 (1.5% of the total revenue.481 bUsiness DevelopMent 1.072 5. Expansion of the national grid and expedition of the construction of cross border transmission lines have also been given importance.728 DistribUtion 74.50 3.84 million in the previous year. NRs 137.777.23 million on account of the increased tax and royalty liability and separation of the engineering business. 479.908 99.054 1.620. the performance was as follows.8% and income from other sources contributed 26. By segment. slow implementation of the plans and policies together with the double digit inflation and poor financial condition of the sole bulk buyer of electricity pose threat to the development of the sector. hence remain’s a matter of concern.80 million was received as dividend in the fiscal year as compared to NRs 104.82 3.27 5.632 (5.018. The net profit however.40 3.130. declined from NRs.910 7.000 Generation contributed 61.672 55.081.473 1.045 24.721 273.897.000 1.81 million in the fiscal year. Financing is a major issue in the development of the projects.697 48. Distribution contributed 11.000 2. Revenue from Generation and Distribution rose by 3.000 2.897 generation 387.185.94% over the previous year.241 12.693) corporate office 17.809 206.41 2.6% respectively from that in the last year.472 254.4% because of steep rise in taxes and royalty on income from Jhimruk Power Plant on completion of 15 years of operation.29%.842 250. Lack of stability in the government.381 21 management discussion & analysis hydropower projects that will be commissioned by 2075 BS.169 142.670 210.59 million to NRs.762 18. There are other provisions also like building of additional cross border transmission lines for power import from India.088 151.896 137.344 40.051. Total operating expenses increased by 32. 224. Implementations however have not been as per the policy and plan in the future.4% and 17. Liquidity crisis and the increase in interest rates combined with large investment required for hydropower have been hurdles in the project developments. 4. .10 4. Administrative expenses increased by 18.10 3.71%.Butwal Power Company Limited Annual Report 2010 3. various hydropower projects have been taken up for development.95 3. Figures in thousand NRs.
107. Similarly operating expense is NRs 376.456. 1. BPC invested additonal NRs. market Capitalization At the end of the FY 2066/67 BPC’s share price stood at NRs.000 a total unrealized surplus amount of NRs. BPC paid NRs.1 million in Kabeli Energy Ltd. 87.9 million of previous year registering a decline of 7.83%. 1.5% more than that of the previous fiscal year.81 million which is reduction by 2.08 103.000 has been identified as revaluation surplus as on balance sheet date. NRs 8.38 101. 740. With this revaluation. 376. during the year. The difference between fair market value NRs. 126. 634.03 million.5% in comparison to previous year. According to the Electricity Act of 2049.060 management discussion & analysis BPC has strategic investments in its subsidiaries.Butwal Power Company Limited Annual Report 2010 Out of the total taxable income of NRs.68 GWh. 5. and market capitalization at NRs.072 as on balance sheet date.21 101. 20. 3. 734.91 61.91 GWh of energy from 5.68 Net worth The operating asset of the company is revalued at fair market value as on balance sheet date.77 million.549. the net worth of BPC as on balance sheet date is NRs. Total investments in share at the end of the FY 2066/67 amounted to NRs.382.54 63.92 million was added during the year. CONSOlIdATed FINANCIAl ReSulTS: 1.000 and carrying value NRs.05 million on income from Jhimruk hydropower plant. which is an increase of 7. 34.47 GWh to Distribution business vertical for supply of electricity to locals and 102. BPC paid NRs.76 63.41 million in Nyadi Hydropower Ltd. joint venture and share investments in other companies.15 million in income tax on electricity generated from Andhikhola hydropower plant and NRs. Fixed assets.205. 259.090. the highest among all the companies in the hydropower category at NEPSE and seventh of all companies listed. 5. The consolidated financial statement is attached with this annual report. The profit before bonus and tax amounted to NRs.67 38. ANdHIKHOlA HydROPOweR PlANT Generation from Andhikhola Power Plant was 38.871 19.99 107.238. Beginning Bhadra 2066 income from Jhimruk HP is taxable for the rest of the life of generation license. worth NRs. the fair market value of the investment in shares of BPC has been assessed as per the financial statements of the respective companies. Andhikhola sold 24.21 million as corporate tax.23 40. 768. The unrealized surplus on such investments amouns NRs.26 million.823.25.19 64. the major contributor in the revenue.1 MW Andhikhola and 12 MW Jhimruk Power Plants. market Capitalization All listed companies All hydropower companies BPC million NRs.19 36. The consolidated turnover of the company was NRs. Ltd.74 40. 85.32 40. generated 101.192.07 million.39% from the previous year.06 billion.57 million which is reduction by 3% in comparison to previous year resulting consolidated gross profit of NRs 392 million.365. Andhi Khola Jhimruk GeNeRATION (IN GwH) 22 . income tax on the sale of electricity generated by Jhimruk HP was exempted up to the end of Shrawan 2066.71 GWh of energy to NEA and 14.375. 239. Similarly.6 million as compared to NRs. Generation Business Generation Business. which includes power plant equipment and transmission and distribution lines worth NRs.25 67. and NRs 8 million in Hydro Consult Pvt. The total contribution of BPC to the Government revenue on account of taxes and royalties was NRs. Theses surpluses are not recognized in the financial statement. 10. The consolidated financial statements has been prepared in line with the IFRS.960 10.
Butwal Power Company Limited Annual Report 2010 Andhikhola Hydropower Plant Intake 23 .
99 17.47 14. The revenue from sales of energy to NEA was NRs 294. Deteriorated and aged equipment. distribution Business Distribution Business purchased 17. feeble 33 kV grid connection and low discharge in the dry months restricted generation from the Andhikhola plant.92 2.48 334.55 84. There was a reduction in generation from the previous year by 1.91 98.Butwal Power Company Limited Annual Report 2010 purchased 1. Preventive maintenance and overhauling of all turbine parts. preventive maintenance of the plant and power evacuation line were carried out as per the maintenance schedule including conditioning of turbine runners.33 98.68 GWh of energy to its retail consumers which marked an increment of 10% over the previous year both in terms of sales and purchase.59 GWh energy annually for meeting the demand of Sandhikharka area which 81.15 15. The continuous rise in local distribution energy requirement prevented supplying of contract energy of 30 GWh from the Andhikhola plant.08GWh to Distribution. guide vanes. Despite this 2.17 375. High silt content in the monsoon season remained a major challenge in the operation of Jhimruk Power Plant this year also.29%. side covers.32 Sale to BPC Distribution 17.01 87.46 103. The revenue from sales of energy to NEA was NRs 92. JHImRuK HydROPOweR PlANT 98.9 GwH 372. sealing rings.92 million. Optimum generation was obtained despite the frequent breakdown of major equipment with plant availability of 94. Agreement has been reached with NEA for additional offtake of 7. The growth is appreciable due to 24 . Online Sediment Monitoring System and Debris Removal Mechanism have been installed for efficient removal of debris. River training works to protect the project area and farm lands were also done.90 2062/63 2063/64 2064/65 2065/66 2066/67 SAleS ReVeNue FROm BulK SuPPly TO INPS (IN NRs mIll) falls in the distribution area of NEA. To increase the reliability and reduce the outages. The additional offtake will start from this year.90 15.65 84.52 318.44 2062/63 2063/64 Sale to NEA 2064/65 2065/66 2066/67 Sale to BPC Distribution SAleS (IN GwH) Losses Surplus Own Use 2. shaft seals and others were carried out to maximize availability.44 GeNeRATION 101.72 GWh to NEA and 3.70 GWh of excess energy was sold to NEA.55 management discussion & analysis Bulk Sale to NEA Generation from Jhimruk Power Plant was 63.31 GWh due to low discharge in the months of Chaitra and Baisakh and high sediment levels from Shrawan to Ashwin. The 3 MVA transformer at Jhimruk was upgraded to 6/8 MVA.99 81. To optimize the use of water for irrigation and increase the generation. 14 irrigation canals were rehabilitated.45 0.97 GWh from NEA.22 13.56 98.82 82. The stator winding failed 4 times and were repaired by in house team in record time.23 GWh– a 2% decrease from the previous year.runners.97 million.55 GWh of energy and sold 14. Jhimruk sold 56.10 387.
Butwal Power Company Limited Annual Report 2010 distribution Sub-station at mirdi 25 .
Distribution Business is committed to deliver quality service. Feedback is collected from customers on a regular basis and grievances are appeased as per commitment.55 GwH 65.53 11.60 39. 1.6% dISTRIBuTION.an addition of 3.07.911 13.94 49. An extensive energy audit has been carried out and focus areas for loss minimization have been worked out. Contract for the upgrading of Galyang-Syangja 33-kV line with wolf conductor has been awarded through competitive bidding. The work is progressing satisfactorily and is expected to complete by the end of Poush 2067.761 25. Loss minimization has been in the focus and firm efforts have been made to identify and reduce system loss.923 84% Inner Circle. Seven new transformers were added to the system increasing the installed capacity from 6.7% of last year to 16% on account of network expansion and technical loss increase thereof. 16.18 16% 4. 33/11 kV.6% increase.7% over the previous year.25 6% 51. 16 km 33-kV network and 310 km ckt-km low voltage line was installed during the year.000 28. GWh 15 34. More users’ organizations (UO) were formed this year.87 12. Distribution network expansion was carried out in existing VDCs and one new VDC (Bangesal. 0.014 new consumers in the year corresponding to 9. NRs 65.428 31.68 GWh of energy sold.466 26.996 15% 2065/66 10.70 45. 83. Domestic.10 78% 28.000 Sales. Similarly.Metered Domestic-Cut-out Industry No. 3 MVA Mirdi substation was commissioned in the year under REEP. 2062/63 2064/65 dISTRIBuTION SAleS ReVeNue (IN NRs mIll) 2063/64 509 1% 4.Consumer Nos.100 kVA.eNeRGy SAle & lOSSeS TOTAl eNeRGy PuRCHASe 17.Butwal Power Company Limited Annual Report 2010 the fact that electrification was carried out with voluntary VDC funding on top of REEP budget.000 10. With the aim of reducing loss of Distribution Business. Pyuthan) was electrified this year. we have been converting cut-out consumers to metered consumers.83 12.17 management discussion & analysis Out of 14.414 30. of Consumers 2066/67 CONSumeR ANd ReVeNue mIx 40. 76 % was sold to the domestic-metered consumers while 11% to the domestic-unmetered and the rest to the industrial consumers. T & D Loss.68. 2.428. 14. Retail consumers count reached 34.80.000 0 2062/63 2063/64 2064/65 Consumers 10 2065/66 Sales. GWh 2066/67 dISTRIBuTION SAleS ANd CONSumeR GROwTH 26 .186 cut-out consumers were converted to metered consumers in the fiscal year. T&D loss slightly increased from 15.725 kVA to 7. 0.15 20. one additional UO was established in EDC Galyang taking the count to 71.54 55. Electronic data loggers have also been installed in the system for continuous loss monitoring.4% Energy Sale. EDC Darimchaur added 5 UOs taking the count to 24.35 12. Average Service Availability Index (ASAI) was maintained at 96%.50 million revenue was collected marking an increase of 17.Revenue (in mill NRs) Outer Circle.0% Self Consumption.
Butwal Power Company Limited Annual Report 2010 Kabeli-A Hydroelectric Project Area 27 .
management discussion & analysis Under the Rural Electrification Expansion Plan laying of 15 km 33 kV line. Kabali Energy Limited has been incorporated as a SPV for development of the project. 190 km of low voltage line.4 MW). The project is being partially funded by World Bank (40% of the project cost) through Power Development Fund (PDF).A (38 MW). Lamjung has been upgraded from 20 to 30 MW. The power of the project will be evacuated through a transmission line being constructed under the funding of World Bank. It is a daily peaking run-ofthe-river type project. NyAdI HydROPOweR PROJeCT Installed capacity of Nyadi Hydropower Project. The run-of-the-river project has a gross head of 347. Generation License for the construction of Andhikhola Upgrading has been received.Butwal Power Company Limited Annual Report 2010 One of the major environmental aspects of distribution is tree cutting during line construction and cutting and trimming of bushes and bamboos during line maintenance. seedlings are being distributed to local communities for plantation. KABelI. Financial closure with the local consortium of banks is in the final stage. conversion of 20 km 1. This project will implement Pro-Poor Hydropower Project (PPHP) program for the first time in Nepal allowing local labors to buy share of the project through 28 . The upgrading will include increasing of the dam height. The update of the feasibility study report has indicated a capacity increase from 30 to 38 MW.1 kV line to 11 kV and installation of three 33/11 kV transformers has been planned. The project is being partially financed by IFC. Field investigation for IEE and ESIA is ongoing and it is planned to complete the IEE and ESIA reports by the end of 2010. For minimizing the impact of the said aspect. The project’s gross head is 247 m. Major geological investigations like ERT survey and Core drilling work have been completed. 71 GWh annually after upgradation. The power produced by the project will be evacuated through 132-kV transmission line and interconnected to INPS.A HydROeleCTRIC PROJeCT Business development BPC has a number of projects in its portfolio and is also considering other attractive projects. Hydraulic modeling of the project has been completed. addition of a penstock pipe. All wastes. Approval for TOR for EIA has been obtained from World Bank and GoN’s approval on TOR for IEE has also been received. Nyadi (30 MW). Infrastructure development work for the project is underway.5m and a capacity to generate 180 GWh of energy annually. PPA has been signed with NEA. The feasibility study has been completed. The project is ready for construction and will be completed within 15 months. Development of Andhikhola Upgrading (9. Andhikhola is runof-the-river type project and will be generating Kabeli-A Hydroelectric Project located in Panchthar and Taplejung will generate 190 GWh annually and has gross head of 117 m. ANdHIKHOlA HydROPOweR PROJeCT uPGRAdING Located in the Syangja district. are disposed as per well established waste disposal plan under the Environment Management System. insulating materials and used oil. that include damaged electromechanical parts. The construction of the project is scheduled to start in the third quarter of 2011 and start of commercial operation of the plant is expected by the end of 2014. construction of new intake and desilting basins. Hydraulic modeling of the headworks is being done. replacing of electromechanical equipment and enlarging of tailrace section. Lower Manang Marsyangdi (93 MW) and Marsyangdi III (42 MW) are being actively pursued. Kabeli.
29 . Distribution carries out maintenance and replacement of distribution system components wherever required. The intake site will be located in Bagarchhap and powerhouse at Dharapani VDC of Manang district. and ensure plant operation with minimum interruption. helmets. The run-of-the-river type project with capacity 42 MW has a gross head of 62 m and capacity to generate 213 GWh of energy yearly. To tackle these hazards necessary trainings and safety gears like ear plugs. etc. Repair and maintenance of the distribution lines have inherent hazards like falling down. getting electric shock. It has to deal with the increasing need of maintenance and capital reinvestments. ToR for IEE of the project has been approved. Geological investigation and collection of hydrological and meteorological data. HEP is under preparation. electrical shock. Jhimruk too faces the problem resulting in severe erosion of the turbine. and safety boots are provided to the staffs. The project has a gross head of 330 m and will generate 560 GWh energy annually. lOweR mANANG mARSyANGdI HydROPOweR PROJeCT 93-MW run-of-the-river type Lower Manang Marsyangdi HEP (LMMHEP) is located in Southern part of Manang district. Enterprise Risk Management has been implemented to identify. HAzARd RISKS Operation Risks GeNeRATION Deteriorated electro-mechanical equipment and feeble 33-kV grid connection of Andhikhola pose a major challenge in the seamless operation of the plant. helmets etc. mitigate and monitoring of the risk associated with the activities being carried out by the different business units across the Company. To prevent injuries and ensure safety. plan. heat vibration. The project is scheduled to go into construction next year and commissioned by the end of 2014. dISTRIBuTION Risk management Risk management is an integral part of BPC’s business operations. BPC maintains a complete set of turbine parts and accessories to keep the overhauling time minimum. It is targeted to start the construction work by the end of 2012 and start commercial operation by the end of 2016. Project development activities are being carried out in close coordination with and cooperation of local people. The major risks associated with the Company’s business activities are deliberated periodically and action plans are developed to manage them.Butwal Power Company Limited Annual Report 2010 sweat-equity model. power evacuation study is ongoing. Scattered households in the rural areas and low tariff rates often turn electricity distribution into a loss making business. ropes. falling of objects etc. DPR of the project. assess. A Risk Management Committee comprising all VPs and SBU Heads under the chair of CEO monitors the risk mitigation plan implementation. Having to maintain a reliable service with an aging infrastructure is a challenge for Distribution business. mARSyANGdI III HydROPOweR PROJeCT Marsyangdi III Hydropower Project located in Lamjung utilizes the tail water of Middle Marsyangdi Hydropower Plant. BPC has nevertheless continued to expand its network in pursuit of supporting the national goal for electrification. safety belts. BPC has well trained maintenance team along with adequate spares to tackle the challenge There are hazards associated with the operation of power plants like noise. High silt content in rivers of Nepal is a major challenge to the operation of power plants. are provided to the staffs.
Butwal Power Company Limited Annual Report 2010 lower manang marsyangdi Project Intake Area 30 .
metals. etc. Ltd. With the tariff prevailing in the market. long project implementation periods increase the uncertainties for the project.Butwal Power Company Limited Annual Report 2010 BuSINeSS deVelOPmeNT RISKS Business development in the field of hydropower as well as other renewable energy sector has its own set of challenges. We ensure proper disposal of waste like oil. Occupational Health and Safety Hazards have been identified and remedial measures are implemented for the protection of employees from risks resulting from working conditions adverse to health. Emergency Preparedness Plan is in place and trainings have been provided for safety actions. management discussion & analysis Unforeseen geological and hydrological events during the development of hydropower pose a big threat in timely project execution and cost overruns control. offtake of the energy from the projects faces hurdle. We give due consideration to the environment protection while performing our activities. paper. PROJeCT exeCuTION RISKS Health. Safety and environment HSE comes first in our business operations. Typically long payback periods combined with huge initial investment requirement. Retaining experienced professional employees is a challenge and efforts are being put to reserve deserving employees. however. 31 Human Resources BPC’s total human resource strength in the year end was 294. The attrition rate was 11% in the year. using of software like ETAP and Primavera. stall the construction work. Several trainings were conducted in 2009/10 as a part of human resource development in various areas like leadership and knowledge management. together with threats. to a large extent. hospitals. We follow performance linked remuneration system. It has been successful in securing debt financing from IFC for Andhikhola Upgrading Project. Health and safety procedures. As cutting and trimming of the trees and bushes during line construction and maintenance is inevitable. causes time delay as well as cost overruns. . contract and procurement skills enhancement. BPC has been exploring international source of financing. Provisions of fish ladders are there in our power plants to facilitate the migration of fishes. health and safety risks are assessed and safety controls are in place. Fluctuation in the foreign currency exchange rate can lead to substantial cost overruns if the Nepali currency devaluates. No major accidents were reported in the year. Hedging the risk by having forward contracts for major equipment and services helps manage the foreign currency exchange risk. We monitor the effect of our activities through Environmental Aspect Register. Limited debt financing source is another hurdle in the development of the projects. (HCPL). minor injuries were reported . 16 employees of BPC were reappointed from HCPL. Besides looking for debt financing within the country. many a projects are rendered infeasible. etc. Hazard Registers have been maintained in all locations and health profiles of every employee has been maintained. Necessary measures are taken to control the noise pollution. With the formation of Hydroconsult Pvt. etc. With worrisome financial condition of the sole bulk buyer of electricity in the country and low possibility of export of power with the existing infrastructure. schools. Huge capital requirement together with single obligor limit and sector limit imposed on banks raises the necessity of multiple source of financing. Safety awareness trainings are being provided periodically to all staff. The Company is planning to be certified with 18001:2007 OHSAS. Industrial Relations have improved and HR function has been reorganized to handle HR issues efficiently. seedlings are distributed for additional plantation to minimize the effects. hazards.one while working at surge shaft and the other while carrying out repair and maintenance work. BPC always endeavors to maintain good and harmonious relationship with the local community. Huge and unrealistic expectations of the locals from the project like construction of roads. internal audit.
32 .Butwal Power Company Limited Annual Report 2010 Our Corporate Social Responsibility (CSR) policy encourages us to join hands with host communities in protection of environment and in social upliftment through shared responsibility.
Further.Butwal Power Company Limited Annual Report 2010 Corporate Social Responsibility We at BPC believe in sustainable development. with the upgradation of the project. 33 . policies. more than 250 hectares of additional land will be irrigated benefiting the locals in increasing their farm produce and social well being on sustained basis. which covers business principles. the Andhikhola plant supported the locals in Simle village for drinking water pond construction and Amilakharka drinking water tank foundation and protection wall construction. mission and vision. Our business decisions and operations integrate economic. More than 800 households benefit from 309 hectares of land across the Andhikhola river. the land is irrigated through water from our Andhikhola headrace tunnel. Our Corporate Social Responsibility (CSR) policy encourages us to join hands with host communities in protection of environment and in social upliftment through shared responsibility. We always endeavor to work with stakeholders to foster sustainable development and to promote effective use of natural resources. code of corporate governance. code of conduct & ethics in addition to our core values. environmental and social considerations. In addition. We have adopted a Corporate Value Framework.
Butwal Power Company Limited Annual Report 2010 PuBlIC CONSulTATION IN KABelI PROJeCT AReA 34 .
Butwal Power Company Limited Annual Report 2010 lOCAlS PARTICIPATING AT PuBlIC CONSulTATION IN NyAdI PROJeCT AReA 35 .
36 . repair of fourteen irrigation canals and sharing expertise for development of plans for community development. about three times more than the average production. In 2010. Norway in 2008 with an aim to develop high protein content food program on commercial basis with involvement of local women. the harvest was approximately 315 kgs. which fetched NRs 86. employment and empowerment to the local women. BPC undertook pilot project on fish farming for sustainable poverty reduction in collaboration with SPRN.Butwal Power Company Limited Annual Report 2010 Our Jhimruk plant supported the locals in repair and rehabilitation of several drinking water systems.000 in the local market and provided high nutritional food to the local habitats. The women group involved in the pilot project covering 333 m2 of the pond area has been harvesting fish annually.
The local community. Energy saving tips and need for demand side management were shared with the local community. CSR and environment protection are key components in our business decision making. One Planet. The inter-school art competition organized and sponsored by BPC on the day saw overwhelming response. neighborhood schools and media participated in the awareness program. 37 . underground water charging.Butwal Power Company Limited Annual Report 2010 Awareness programs are conducted on the World Environment Day for the local community with the year’s theme “Many Species. rain harvesting. indoor environment quality and reuse of construction materials. geothermal and wind. energy efficiency. efficient water use. The corporate building under construction has been designed on the principles of high performance environment friendly “Green Building Design”. The major components of the design are : use of on-site renewable energy like solar. One Future”.
Prakash Kumar Shrestha.Butwal Power Company Limited Annual Report 2010 SeNIOR exeCuTIVeS: Radheshyam Shrestha. Bishnu Prasad Shrestha. Ranjan Lohar and Murali Prasad Sharma 38 .
Butwal Power Company Limited Annual Report 2010 Ratna Shakya. Ujjwal Sundas. Pratik Pradhan. Kabindra Sharma and Gopal Chandra Joshi 39 .
The public shareholders will be intimated appropriately to handover their dividend warrants. Shares and Shareholders’ Relation SHARe OwNeRSHIP STRuCTuRe The share ownership structure is as illustrated below. e-news.Butwal Power Company Limited Annual Report 2010 corporate governance BPC is committed to upholding the highest standards of corporate governance in all its activities and business operations. Board of directors and Board Committees BOARd COmPOSITION SHAReHOldeRS’ meeTING ANd COmmuNICATION Shareholders are informed about the business operations and progress of the company through letters.79 2. BPC’s 17th AGM of Shareholders was held on 8 January 2010 (24 Poush 2066) at 11:00 A. After approval by AGM and consent of the Ministry of Finance as per the Section 182 (2) of the Companies Act.09 6. analyzed and implemented on merits in the business interest of the company. BPC distributes the dividends directly to the institutional shareholders. However. the role of the Board is distinct from that of the management. The company is managed by its executives under the direction and leadership of the CEO and the oversight of the board. dIVIdeNd dISTRIBuTION The Articles of Association of the company provisions eight members of Board and representation of Shareholders in the Board based on the shareholding structure. BPC encourages and welcomes suggestions from Shareholders.95 10. its future plans. The board reviews and discusses the performance of the company. the dividends are distributed.05 2. FuNCTIONS OF THe BOARd In line with the global standards on corporate governance. national daily newspapers and the company website. The distribution of dividends to the public shareholders is arranged through the Share Registrar. All directors have a duty to act in good faith in the best interests of the company and are aware of their individual and collective responsibilities towards the Shareholders.06 0. 40 . The Share Registrar and the Head-Corporate Affairs serve as contact point for shareholders for any queries or clarifications. risk management and other pertinent issues. We believe that good governance practice is a key to sustainable development.M.06 100 The dividends declared in the last fiscal years have been distributed to the Shareholders. major business strategies.00 1. The suggestions of the Shareholders are reviewed. It also assumes responsibility for the overall direction and supervision of company affairs.00 9. naMe of shareholDer Shangri-La Energy Limited General Public / individuals Government of Nepal Interkraft Nepal AS United Mission to Nepal Employees Nepal Electricity Authority Nepal Industrial Development Corporation total oWnership (%) 68. The existing members of the Board are given bellow. BPC’s business dealings are transparent and we place great emphasis on our core values and on maximizing returns on the investments of our shareholders. few public shareholders have not collected their dividend warrants. at head office premises in Kathmandu.
monitor and approve financial results and new business investments. • Mr. Nirmal Pradhan 4 Mr. • Mr. as Director from 29 January. Pradeep Kumar Shrestha Mr. Ratna Sansar Shrestha. represented SEL. Bijay Bahadur Shrestha. Bijaya Krishna Shrestha 7 Mr. Rajib Rajbhandari POSITION Chairman Director Director Director Director Director Director Alt. • Mr. Bijay Bahadur Shrestha Mr. Ratna Sansar Shrestha. 2003 to 3 May. as Director from September 2001 to 28 January. • Mr.549. FCA Mr. Gyanendra Lal Pradhan 8 Mr. as Director from 29 January 2003 to 22 September 2010. AudIT COmmITTee A three-member Audit Committee was set up on 29 November 2005 (14 Mangsir 2062). FCA 10 Mr. 2003. Gyanendra Lal Pradhan. 2007. • To comply with legal requirements. Ganesh Lal Shrestha Mr. to 2 May. Ten Board meetings were held in the F/Y 2066/67. Padma Jyoti 10 Mr. Nirmal Pradhan Mr.present 4 June 2008 – present Note: • Mr. represented SEL. • To comply with the code of conduct and ethics and • To delegate appropriate authority to the top management so that it can manage business operations effectively and efficiently BOARd meeTINGS Board member meetings attended Mr. FeeS ANd AllOwANCeS OF dIReCTORS The structure of the meeting fee and allowance of the Directors are as follows: Particular Meeting Fee (For both the Board and Board Committee meetings) Transportation and Telephone Allowance Position Chairman Director Chairman Director Amount in Rs. FCA. monitor and approve major financial and corporate strategies.present 29 January 2003 . Rajib Raj Bhandari. 2007. Rajib Rajbhandari 10 Mr. January 2003 – present 17 May 2005 – present 8 January 2010 – present 3 May 2007 . Anup Kumar Upadhyay 8 Mr. Murali Prasad Sharma served as Company Secretary during the reported period. 10 days. representing public shareholders. 2003. • The position of Independent Director is vacant as no suitable candidate has been found yet. Bijaya Krishna Shrestha Mr. completed his tenure as Director on 8 January 2010.present 3 May 2007 – present 29. Ratna Sansar Shrestha. • To review. Santosh Kumar Pradhan 4 Mr. Pradeep Kumar Shrestha 8 Mr. The board has the following specific functions: • To review. represented UMN. 41 . • To ensure that there is a framework for risk assessment and management. The agenda and other relevant documents and information needed are circulated to the directors well ahead of the meetings to ensure that the directors prepare themselves for the Board meetings and participate actively before arriving at resolutions. Santosh Kumar Pradhan. represented SEL. The longest gap between any two meetings was 53 days and the least. Padma Jyoti Mr.Butwal Power Company Limited Annual Report 2010 NAme Mr. Director Alt. Bijay Bahadur Shrestha 10 Mr. Director ORGANIzATION SEL SEL SEL SEL IKN GoN General Public SEL SEL PeRIOd 29 January 2003 . • To provide counsel for the development of top management team. • To ensure that mechanisms are in place for maintaining the integrity of the business. Director from 13 April. Anup Kumar Upadhyay Mr. as Alt.present 22 September 2010 . 3000 per meeting Board meetings are held at regular intervals according to a predetermined annual meeting schedule.000 as meeting fee and allowance in the F/Y 2066/67. The attendance for the Board meetings was as follows: 5000 per month 3000 per month The members of the Board and Board Committees have been paid Rs.
CEO and Vice Presidents attend the Budget Committee meetings. Ratna Sansar Shrestha. CEO. To perform any other tasks on policy matters regarding accounting. Head-Finance. the Large Tax Payers’ Office and the Department of Electricity Development within the due dates. To supervise and review internal auditing. Head-Corporate attend the Audit Committee meetings. corporate governance Transparency and disclosures BPC believes in transparency of its business operations and makes disclosures as required. the Company Registrar’s Office.Butwal Power Company Limited Annual Report 2010 Name Mr. The responsibilities of the Budget Committee are: 1. The Committee members meet twice in a year. Bijay Bahadur Shrestha BudGeT COmmITTee Mr. contingent liabilities and other relevant information are made in the notes to the financial statements. These accolades testify BPC’s commitment to transparency. To prepare a policy for the appointment of an internal auditor following the guidelines of the code of conduct. Gyanendra Lal Pradhan Member RemuNeRATION COmmITTee 2 2 Remuneration committee is constituted as and when required to review the compensation packages of the top management. Mr. 2. Pradeep Kumar Shrestha Mr. remuneration and other terms and conditions of appointment to the AGM for ratification. standards and directives issued by the Institute of Chartered Accountants of Nepal. FCA Mr. Gyanendra Lal Pradhan was member of the Budget Committee. The disclosures on related-party transactions. position Chairman Member Member Meetings attended 8 7 8 Reporting to Regulators The statutory reports in line with the reporting requirements prescribed by the prevalent laws have been submitted to the Securities Board of Nepal. Ratna Sansar Shrestha Mr. To review financial statements and internal control and risk management systems. accounts and company law. the committee is responsible for the following duties: 1. To recommend the name of an auditor. 6. The committee consists of two directors of the Company. Nepal Stock Exchange Limited. the Board did not constitute the Remuneration Committee in F/Y 2066/67. To recommend to the board for approval of the budget. 5. 3. Bijay Bahadur Shrestha Position Chairman Member Member as secretary of the Budget Committee. To monitor and control the budget. 2063. The attendance of the Committee members was as follows: name Mr. There being no revision of compensation package of top management. In 2010. To monitor and supervise the auditor and evaluate whether he has followed the code of conduct. standards and directives or not. Pradeep Kumar Shrestha Mr. 4. Mr. The attendance was as follows: naMe position Meetings attenDeD The Audit Committee members have a good knowledge of finance. There were altogether eight meetings held during the fiscal year. financial statements or auditing as assigned by the board of directors. To scrutinize the budget proposed by the management and 3. The Budget Committee was set up on 20 March 2006 (7 Chaitra 2064). To review and approve the company’s accounting policy and 7. Chief Finance Manger acts 42 Risk management BPC has implemented the Enterprise Risk Management and has managed the risks . BPC has been awarded “Best-Presented Accounts Award” by ICAN for the fifth time in a row for excellent presentation of its financial statements and annual report. 2. Padma Jyoti chairs the Budget Committee. As prescribed by the Section 165 of the Companies Act. Padma Jyoti Chairman Mr. Manager-Legal acts as secretary of the Audit Committee.
there were no material breakdown of internal controls. Ranjan Lohar Mr. Code of Conduct and ethics We have a well defined code of conduct and ethics. Ltd. 1 2 3 4 5 6 7 8 9 10 naMe Mr. no. assessment. Keton Hydro-Power Limited Khudi Hydro-Power Ltd. Jumdi Hydropower Pvt. Padma Jyoti Mr. BPC’S RePReSeNTATION IN ITS SuBSIdIARIeS ANd ASSOCIATe COmPANIeS The representation of BPC in the Board of Directors of its subsidiary and associate company is decided by the Board. Manager. The repair and maintenance of power plants and distribution lines have been done as per the maintenance schedule. The company’s internal audit functions are being carried out independently on quarterly basis for ensuring the effectiveness and efficiency of operations. Ratna Shakya Mr.Facility Management Project Manager-AKUP 43 corporate governance . Bijaya Krishna Shrestha Mr. Ujjwal Sundas Mr. Manohar Shrestha Mr.3% 97. TOP mANAGemeNT ANd SeNIOR exeCuTIVeS The overall company management is led by the CEO and functionally led by the vicepresidents. Jhimruk Industrial Development Centre (P) Ltd. The strategic business units are headed by the sr. Ltd. reliability of financial reporting and compliance with applicable laws and regulations. The management performed satisfactorily during the F/Y 2066/67 as per the vision. Ranjan Lohar Mr. regardless of his/her individual role or position. the controls are adequate for the financial records to be relied and the financial statements give proper account of assets and liabilities. Ganesh Lal Shrestha Mr. which is essential for sustainable growth. Bishnu Prasad Shrestha Mr. The statutory auditor examines the financial statements in line with the Nepal Accounting Standard and other applicable Act.Business Development VP.88% 80% 20% 24% 19% 90% 60% 51. Ranjan Lohar Mr. which applies to everyone in BPC. Nepal Hydro & Electric Pvt. Hydro Consult Pvt. Pratik Man Singh Pradhan Mr. Bijaya Krishna Shrestha Mr. Pradeep Kumar Shrestha Mr. Radheshyam Shrestha Mr. Manohar Shrestha Mr. Ranjan Lohar. The major risks associated with the Company’s business activities are being reported to the Board periodically.Butwal Power Company Limited Annual Report 2010 through the process of identification. Nyadi Hydro-Power Limited Kabeli Energy Ltd. Gopal Chadra Joshi Mr. mitigation plan. Rajib Rajbhandari position in boarD Chairman Member Member Member Alt. Kali Prasad Choudhary Designation CEO VP. Ratna Shakya Mr. Ratna Shakya Mr. Rajib Rajbhandari Mr. Prakash Kumar Shrestha Mr. Ranjan Lohar Mr. Manager. mission and values of the Company under the strategic guidance of the Board of Directors. Ratna Shakya Mr. Pratik Man Singh Pradhan Mr. Prakash Kumar Shrestha Mr. Ltd. Ranjan Lohar Mr. Prakash Kumar Shrestha Mr. Bijaya Krishna Shreshta Mr. Himal Power Limited bpc shareholDing in % 100% 16. BPC has a strong team of management under the leadership of Mr. Hydro Lab Pvt. Member Chairman Member Member Member Member Member Member Chairman Member Chairman Member Member Chairman Member Chairman Member Member Chairman Member Member Internal Control and Accountability The company believes that internal controls assist management in carrying out their fiduciary duties and operating responsibilities. The internal audit reports are reviewed by the Audit Committee and are discussed with management for taking corrective and improvement measures. Ltd. Kabindra Sharma Mr. Bijay Bahadur Shreshta Mr. and monitoring the risks associated with the activities being carried out by the different business units across the Company. the CEO. Padma Jyoti Mr. It also appraises the systems processes and the risks associated with these. management Business operations and management of the company is managed by management team. Rules and Regulations and issues his report. Manager –Corporate Affairs Sr. Good relation has been maintained with the locals of project vicinity by jointing hands within development initiatives. The names and designations of sr. Ratna Shakya Mr.Finance Head of Corporate Management and CFM Head of Operations Chief Manager-Distribution Sr. Bijay Bahadur Shrestha Mr. Ranjan Lohar Mr. Efforts are being put to retain trained and experienced human resources and stop turnover of the employees. executives are as below. The committee coordinates risk management activities for effective risk management in the Company.2% 54% naMe Mr.Human Resources Sr. A Risk Management Committee has been constituted comprising all VPs and SBU Heads under the chair of CEO. The current representation is as below: coMpany BPC Services Ltd. executives/managers/ project managers. The assets of the Company are adequately insured. s. According to the Internal and External audit reports.
Jyoti & Co. Ganesh Lal Shrestha is involved in the industries listed below. • Director. Interworld Trading Pvt. Soaltee Hotel Ltd. Constituent Assembly • President. Shrestha has been actively involved in management of several industries and commerce sector for more than 26 years. Jyoti does not hold any shares in BPC. Himal Wires Pvt. MBA from Sloan School of Management. Nyadi Hydropower Ltd. National Business Initiative Mr. • Chairman. Jyoti is a leading industrialist who has been managing various industries in Nepal for the last 39 years. Syamukapu & Co. Ltd. 50 MBA from Tribhuvan University. • Chairman. Ltd. Ltd. Academic Assembly-NAST • Chairman. Mr. Shangri-La Energy Limited • Honourable Member. Kanpur. Jyoti Yarns Processing Pvt. the Republic of South Africa • Member. Pvt. Jyoti is involved in the institutions listed below. 55 MBA from the Faculty of Management Studies. Himal Oxygen Pvt. • Chairman. • Chairman. Royal Nepal Golf Club Mr. Ltd. MEMBER Mr. University of Delhi. USA. MEMBER Mr. Shrestha has 26 years of experience in the export sector and more than 11 years of experience in the capital market. • Director. Scenic Developers Pvt. Nepal. Mr. • Chairman. • Director. Pvt. Shangri-La Energy Limited • Chair Person International Peace Conference Committee. • Chairman.Butwal Power Company Limited Annual Report 2010 Brief Resume of the Board members and disclosures padma jyoti. Ltd. Bhajuratna Finance and Saving Co. Ltd. Sagarmatha Insurance Co. CHAIRMAN • Chairman. • Chairman. Bijay Bahadur Shrestha is involved in the industries listed below. Nepal Bitumen & Barrel Udyog Ltd. 44 . • Chairman. Shrestha holds 4070 shares in BPC. • Chairman. India. Ltd. • Chairman. • Chairman. Bhajuratna Eng. • Vice President-SAARC Chamber • Managing Director. FNCCI • Treasurer. Dynamic Builders Pvt. Ltd. Mr. Himalayan Bank Ltd • Director. Mr. Shrestha has more than 35 years of experience in construction management and has also been actively involved in banking and commerce sector. Shangri-La Energy Limited. Ltd. Kathmandu. Ltd. Pvt. Shrestha does not hold any shares in BPC. Kabeli Energy Ltd. • Director. Shangri-la Energy Ltd. Himal & Co. Pradeep Kumar Shrestha is involved in the institutions listed below. • Director. Himal Iron Steel Pvt. corporate governance ganesh lal shrestha. Mr. Syakar Company Ltd. • Director. • Chairman. Panchakanaya Group of Industries • Director. Mr. MEMBER • Managing Director. financial and insurance sectors. Mr. • Chairman. & Sales Ltd. Ltd. Arniko Nirman Company Pvt. Bhajuratna & Co. 64 Bachelor’s in Mechanical Engineering from IIT. Nepal Rotary • Honorary Consul. Mr. Ltd. Pvt. banking. United Insurance Ltd • Central Executive Member. • Chairman. bijay bahadur shrestha. Shrestha does not hold any shares in BPC. pradeep Kumar shrestha. Massachusetts Institute of Technology. • Director. Ltd. 75 Bachelor’s in Science from Tribuvan University. Ltd.
45 M. 58 CPA from Massachusetts. Serving Minds Pvt. Water Supply Tariff Fixation Commission Mr. Shangri-La Energy Limited • Director. Mercantile Investment Pvt. Mr. Ltd. 45 corporate governance . Rajib Rajbhandari is involved in the industries listed below. Anup Kumar Upadhyay is the joint secretary of the Ministry of Energy. Ltd. He is actively involved in the clean energy sector for over two decades. Social Development Bank Ltd.R. Director. USA. Rajbhandari holds 38104 shares in BPC. MEMBER Mr. Ltd. Premier Insurance Limited • Director. Ltd. R. Himal Media Pvt. ALTERNATE MEMBER Mr. anup Kumar Upadhayay. Ace Development Bank Limited • Director. • Member. MEMBER Mr. Bijaya Krishna Shrestha is involved in the industries listed below. Shrestha is a fellow of the Institute of Chartered Accountants of Nepal and a corporate lawyer accredited by the Nepal Bar Council. Mr. Mr. Nirmal Pradhan is involved in the industries listed below. Investment Pvt. FCA. USA Mr. Mr. (Honours) from Bombay University.Butwal Power Company Limited Annual Report 2010 ratna sansar shrestha. Malpi International School Director. Director. Pradhan holds 10522 shares in BPC. Com. Shrestha has more than 31 years of experience in the banking. • Director. energy and electronics sectors. MEMBER Mr. in Electrical Network and Systems from Georgian Technical University. Upadhyay does not hold any share in BPC.Sc. Upadhayay is the joint secretary of the Ministry of Energy and has more than 18 years of experience in the power sector of Nepal. Rajbhandari has more than 21 years of experience in the industry and commerce sectors. 56 Holds bachelor’s degree Mr. Rajdhani Investment Fund Ltd. Shrestha holds 550 shares in the BPC. Ltd. ALTERNATE MEMBER • • • • • • Director. Hits Nepal Pvt. Pumori Agro Forestry Industries Pvt. Director. Republic of Georgia. in stock investment for 12 years and in housing and real-estate for 15 years. insurance. Master’s of Commerce and Bachelor’s of Law. 62 Electrical engineer with an MBA from Southern Illinois University. • Chairman. 53 B. • Director.B. Mr. Shrestha holds 110 shares in BPC. Ltd Director. computer. Ltd. rajib rajbhandari. bijaya Krishna shrestha. Bank of Kathmandu Mr. Shangri-La Energy Limited Mr. Mr. Beltron Investment Pvt. NEVI Trade Links • Director. Ratna Sansar Shrestha is involved in the institutions listed below. • Director. Director. nirmal pradhan. Pradhan has been involved in film industry for 26 years. Director.
It publishes quarterly financial statements and other significant information on its website.563 9.675 % SHAREHOLDERS 51.6% 1.06 NUMBER OF NUMBER OF SHARES SHAREHOLDERS Up to 500 430 501-1000 250 1001-5000 81 Above 5000 71 Total 832 NUMBER OF SHARES HELD 54.245 706 1.546 9.7% 30.0% 100% Trading Information The major highlights of BPC’s share transactions during the FY 2066/67 are as follows: High price. FISCAL YEAR 2062/63 2063/64 2064/65 2065/66 2066/67 NEPSE INDEx 386 657 963 749 477 STOCK PRICE 540 1.216 257.031 558.229.009 923.559 1.675 MARKET CAPITALISATION (IN NRs.0% 9.390.390.090 NO.481 5.270 1.bpc. NRs Total market transaction days Total BPC transaction days Volume of shares transacted Turnover NRs million 1. NRs Low price.090 225 86 130. NRs Closing price.460 128.390.577 8.09% Interkraft Nepal AS 6.627 97.577 9.30 Shareholding Share Ownership Structure at the End of the Fiscal Year: NAME OF SHAREHOLDERS OWNERSHIP (%) Shangri-La Energy Limited 68.364.00% Nepal Electricity Authority 1.00% Government of Nepal 9.8% 96.95% General Public/ Individuals 10.858.675 46 . BILLION) 4.390.08 10.7% 8.66 10.229. OF SHARES 8.Butwal Power Company Limited Annual Report 2010 shareholdersinformation Communication with Stakeholders The company is providing information to its stakeholders in a timely fashion using various means such as its website.7% 1.577 8. press releases and publication of financial statements.632 184.577 8.675 8.5% 100% % SHAREHOLDING 0.com.246 162.79% Employees 2. www. np and makes sure to keep it updated.39 13.05% United Mission to Nepal 2.06% Total 100% SHARES HELD 6. The company publishes its quarterly financial statements in a national daily newspaper.000 1.53 8.06% Nepal Industrial Development Corporation 0. The Company maintains regular contact with the media and disseminates relevant information.133 839.229.191 154.
Butwal Power Company Limited Annual Report 2010
SHAReHOldeRS AT 17TH ANNuAl GeNeRAl meeTING
Annual General meeting
The 17th Annual General Meeting was held on 8th January 2010 (24 Poush 2066) at BPC Corporate Office, Kathmandu. The 18th Annual General Meeting will be held on: Date: 7 January 2011 (23 Poush 2067) Time: 2:30 PM Venue: Indreni Complex, Baneshwor, Kathmandu
Dividend Per Share (NRs)
* includes 10% stock dividend
In line with the practice followed by the Government of Nepal, the fiscal year is spread from Shrawan to Ashad as per Bikram Sambat Calendar (starting from 1st Shrawan ending to Ashadh end of the following year i.e. starting from 16 July ending to 15 July of the following year as per the Gregorian Calendar)
BPC is listed on Nepal Stock Exchange and its ordinary shares are traded under the code “BPCL”.
Share Registrar Right Issue
The 17th AGM of the Company has approved Right Issue in the ratio of 3:2 to meet the fund requirements needed for the under construction projects and for the projects that the company is planning to undertake. l The Right Issue is under process because of the shifted construction plan of projects due to the political and investment situation of the country.
NMB Capital Markets Ltd. Babarmahal, Kathmandu Phone No.: 977-01-4421652, 4423219, Fax No.: 977-01-4423401 Email: firstname.lastname@example.org URL: www.ncml.com.np
Butwal Power Company Limited Annual Report 2010
Five year Summary of Balance Sheet
PARTICULARS 2062/63 2005/2006 2063/64 2006/2007 2064/65 2007/2008 2065/66 2008/2009
in Thousand NRs
ASSeTS & PROPeRTy: Fixed Assets Land Office Building & Quarters Access Road Suspension Bridge Power Plant & Machinery Switching Station Sub Station Transmission & Distribution Line Office Equipments Furnitures Vehicles work in Progress Investment in Shares Current Assets, loan & Advance Stock Debtors & Receivable Cash & Bank Balance Advance & Deposit Deferred Revenue Expenditure Total CAPITAl & lIABIlITIeS: equity Reserve & Surplus General Reserve Retained Earnings Grant Aid in Reserve long Term loan Current liabilities Short Term Loan Creditors & Payables Advance & Deposit Provisions Provision for Corporate Tax Corporate Tax for 2060/61 (under Appeal) Provision of Loss in Investment Total
743,605 60,372 30,710 3,245 2,141 368,596 254,182 19,565 1,305 3,489 37,970 434,481 524,022 57,623 35,512 364,373 66,514 4,369 1,744,447
743,893 60,408 33,629 3,014 1,989 340,697 276,756 22,700 1,461 3,239 24,369 465,705 647,416 58,896 58,918 457,035 72,567 888 1,882,271
725,742 60,408 33,502 2,784 1,837 314,043 267,466 25,695 1,645 18,362 37,191 477,858 746,136 74,647 88,407 412,635 170,447 4,765 1,991,692
765,339 64,305 32,976 2,554 1,685 287,502 20,734 294,953 28,870 2,078 29,682 43,155 706,134 743,837 92,723 171,359 291,687 188,068 5,735 2,264,200
781,666 66,561 30,508 2,323 1,533 281,217 19,893 33,048 305,741 20,866 1,373 18,603 95,404 807,211 651,519 104,543 93,690 234,888 218,398 5,644 2,341,444
839,058 461,510 148,700 222,131 90,679 440,410 438,803 1,607 3,469 3,469 1,744,447
839,058 455,805 148,700 222,805 84,300 568,510 89,947 447,705 30,858 18,898 9,619 9,279 1,882,271
839,058 556,762 148,700 306,397 101,665 570,323 183,956 356,934 29,433 25,549 9,401 16,148 1,991,692
839,058 707,210 148,700 429,502 129,008 26,729 624,543 154,294 434,050 36,199 66,660 12,247 16,774 37,639 2,264,200
922,968 706,834 148,700 385,120 173,014 57,970 566,569 205,495 301,517 59,557 87,103 25,207 16,774 45,122 2,341,444
Butwal Power Company Limited Annual Report 2010
Five year Summary of Profit and Loss Account
PARTICULARS 2062/63 2005/2006 2063/64 2006/2007 2064/65 2007/2008 2065/66 2008/2009
in Thousand NRs
INCOme Operating Income Electricity Sale to NEA Electricity Sale to Consumers Electricity Services Management and Technical Support Consultancy Services Total Operating Income Income from Other Sources Interest Income Foreign Currency Exchange Gain (Loss) Dividend Income Gain (Loss) on Disposal of Assets & Stock Materials Depreciation Being Revenue Portion of Grant Aid Grant Support for Technology Transfer Other Total Non- Operating Income Total Income exPeNdITuRe Generation Expenses Distribution Expenses Management and Technical Support Expenses Project Development Expenses Consultancy Services Administrative Expenses Provision of Loss in Investment Interest Expense Depreciation Staff Bonus Total expenditure Net Profit Before Tax Income Tax Provision Net Profit After Tax Retained Earnings b/f Prior Year’s Adjustment Dividend of 2057/58 Paid 10% Stock Dividend Proposed Dividend Balance transferred to B/S
318,483 39,936 5,353 11,498 375,270 13,639 7,483 88,036 (6,090) 6,833 918 110,819 486,089 57,715 31,054 13,692 34,990 49,959 6,791 194,201 291,888 3,469 288,419 185,484 (55) (251,717) 222,131
334,166 45,603 3,634 9,535 392,938 15,365 (25,740) 97,982 6,964 2,794 1,461 98,826 491,764 74,565 33,303 8,774 40,068 9,479 5,266 51,924 5,926 229,305 262,459 9,619 252,840 222,131 (531) (41,871) (209,764) 222,805
372,521 49,166 6,151 18,894 446,732 16,495 18,217 156,894 143 5,276 3,867 1,983 202,875 649,607 82,514 48,428 16,743 59,920 6,869 7,246 55,103 9,504 286,327 363,280 9,401 353,879 222,805 (18,570) (251,717) 306,397
375,103 55,697 8,040 3,740 28,108 470,688 11,272 30,809 104,843 608 5,866 4,317 2,897 160,612 631,300 88,491 48,700 18,957 70,377 21,491 7,913 61,873 9,659 327,461 303,839 12,247 291,592 306,397 (676) (167,811) 429,502
387,896 65,535 9,137 17,241 479,809 6,408 (3,651) 137,803 (602) 7,547 2,077 1,699 151,281 631,090 137,842 55,762 12,072 1,045 83,253 7,483 18,104 60,632 5,457 381,650 249,440 25,207 224,233 429,502 (115) (83,906) (184,594) 385,120
Butwal Power Company Limited Annual Report 2010
We were awarded “National Best Presented Accounts Award 2009” for the fifth time in a row by the Institute of Chartered Accountants of Nepal in the manufacturing sector for excellence in the presentation of financial statement and annual report. BPC received an award of merit in the manufacturing sector for the year 2009 from the South Asia Federation of Accountants (SAFA) 2nd time in a row. The award was conferred on the basis of evaluations of SAFA’s Committee for Improvement in Transparency, Accountability and Governance of the published annual reports. BPC got recertified in ISO 9001:2000 to ISO 9001:2008 in the fiscal year.
2010 financial statements .
In our opinion and to the best of our information and the explanation given to us. evidence supporting the amounts and disclosures in the financial statements. 3. Profit and Loss Account. Profit and Loss Account. based on our audit.Butwal Power Company Limited Annual Report 2010 PP PRADHAN & CO C H A R t e R e D A C C O u N tA N t s PP PRAdhAn & Co Sanepa. Lalitpur. 2067 (14 December 2010) Place: Kathmandu. on those statements and to report our opinion to you. It has not come to our notice that the board of directors or the employees or the representative have caused any loss or damage to the Company or acted in violation of the law. oPinion 1. on a test basis. assessing the accounting principles used and significant estimates made by management. It is our responsibility to express an independent opinion. the Balance Sheet. Pratap P Pradhan For PP Pradhan & Co Chartered Accountants Date: 28 Mansir. Cash Flow Statement and Statement of Changes in Capital have been prepared in conformity with the provisions of the Company Act 2063 and they are in agreement with the accounts of the Company. We obtained prompt replies to our queries and all the explanations asked for. 5. The Balance Sheet. which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The accounts and records of the Company have been maintained as required by law. Nepal Tel:+ 977 1 5551126 Fax: +977 1 5532878 The ShAReholdeRS BuTwAl PoweR ComPAny limiTed Audit Report 2066/67 (2009/2010) We have examined the attached Balance Sheet of Butwal Power Company Limited as at 32 Ashad 2067 (16 July 2010) and Profit and Loss Account. BASiS of oPinion We conducted audit of these statements in accordance with generally accepted auditing standards. Cash Flow Statement and the Statement of Changes in Capital for the year then ended with the books of account made available to us and we report as follows: ReSPeCTive ReSPonSiBiliTieS of mAnAgemenT And AudiToRS These financial statements are the responsibility of the management. 4. Nepal 52 . Po Box:3242 Kathmandu. An audit includes examining. and evaluation of the overall financial statement presentation. Cash Flow Statement and Statement of Changes in Capital show a true and fair view of the state of affairs of the Company as at 32 Ashad 2067 (16 July 2010) and for the year then ended. 2.
Y.431.080 (2.883 218.014.294.067. Chartered Accountants 53 .998 87.689.259.453 57.665.967.Butwal Power Company Limited Annual Report 2010 Balance Sheet As on 32 Ashadh 2067 (16 July 2010) ParticularS I SOURCES OF FUND 1 Shareholder’s Fund Share capital reserve & Surplus Total Shareholder’s Fund 2 Grant aid in reserve 3 long term loan TOTAL APPLICATION OF FUND 1 Fixed Assets Gross Block less: depreciation Net Block 2 Work in Progress 3 investment in Share 4 Current Assets: Stocks debtors & accounts receivable cash in hand and at Bank advance & deposit Paid Total Current Assets 5 Less: Current Liabilities Short term loan creditors & accounts Payable advance & deposit received Provisions Total Current Liabilities Net Current Assets 6 deferred revenue expenditure TOTAL Schedule f.644.700 578.158 188.339.671. Padma Jyoti Chairman Pradeep Kumar Shrestha Director ganesh lal Shrestha Director Bijay Bahadur Shrestha Director Ratna Sansar Shrestha Director Anup Kumar upadhyay Director nirmal Pradhan Director As per our report of even date Ranjan lohar Chief Executive Officer date: 14 December 2010 Place: Kathmandu.654 95. f.911 653.313 634.500 533.205 1.713 173.887.649 743.863 651. Nepal Ratna Shakya Chief Finance Manager Pratap Prasad Pradhan PP Pradhan & Co.787.456.687.586 1.687.204.837.533. 1 2 3 922.291 154.371 839.995.518.729.292 434.543.970.371 1.740 234.572.110.867 1.392) 5.823 765.531 26. 2065/66 Nrs.751 301.572. 2066/67 Nrs.802 66.688 205.026 36.202 93.397.110 171.599 92.102.420 59.201.555.494.540 807.169 52.517.834 5 6 7 8 9 10 11 12 13 Schedule 1 to 13 form an integral part of this financial statement.152.154.633.772.057.133.286 129.687.007.359.417.660.703 104.050.374 291.001 1.310 781.820.868.772.213 1.399.490 43.210.Y.834 II 4 1.995.450.123 5.963 649.403.017 1.735.199.621 706.049 691.723.
840 55. Schedule f.381 9.592. 2065/66 Nrs.120 8.338 7.632.701 30.912.291 12.258 83.611.108 65.720.535.Y.040.109 2.206.Butwal Power Company Limited Annual Report 2010 Profit and loss Account For the year ended 32 Ashadh 2067 (16 July 2010) ParticularS OPERATING INCOME electricity Sale to Nea electricity Sale to consumers electricity Services Management and technical Support consultancy Services Total Operating Income OPERATING EXPENSES Generation expenses distribution expenses Management and technical Support expenses Project development expenses consultancy Services Total Operating Expenses GROSS OPERATING PROFIT ADMINISTRATIVE AND OTHER EXPENSES administrative expenses depreciation Provision of loss in investment interest on loan Total Administrative and Other Expenses INCOME FROM OTHER SOURCES interest income Other income depreciation Being revenue Portion of Grant aid Grant Support for technology transfer dividend income foreign currency exchange Gain (loss) Gain (loss) on disposal of assets & Stock Materials Total Income From Other Sources PROFIT (LOSS) BEFORE BONUS & TAX employees’s Bonus Provision for corporate tax NET PROFIT (LOSS) BEFORE APPROPRIATION Profit & Loss Appropriation Account: last Years Balance Profit for this fiscal Year Total less: 10% Stock dividend less: dividend Total Dividend Prior Year’s adjustment Balance Transferred to Balance Sheet Significant accounting Policies & Notes to accounts Schedule 14 to 25 form an integral part of this financial statement.186 206.078 5.592.227 314.540) (675.108.653.889 291.896.724 224.698.699.842.376.700 169.770) (184.048) 385.552 21.071.270) (115.896.547.581 88.077.866.333 48. 375.045.088.500) (268.163 306.499.396.586 14 15 16 17 18 19 20 21 4 22 23 24 25 Padma Jyoti Chairman Pradeep Kumar Shrestha Director ganesh lal Shrestha Director Bijay Bahadur Shrestha Director Ratna Sansar Shrestha Director Anup Kumar upadhyay Director nirmal Pradhan Director As per our report of even date Ranjan lohar Chief Executive Officer date: 14 December 2010 Place: Kathmandu.811.213 f.142 3. Nepal Ratna Shakya Chief Finance Manager Pratap Prasad Pradhan PP Pradhan & Co. 387.811.540.Y.407.163 597.136.651.957 (167.247 137.232.236) (601.498.650 1.813 17.734.988.027 18.479 9.079 156.966 273.682 161.590 61.945 653.740.368 7.246.015 28.272.316.103.841.355 70.794 291.232.400 607.280.572 1.957.367 2.815 18.992 (3.540) (167.905.739 160.078 55.945 429.586 224.365 254.501. 2066/67 Nrs. Chartered Accountants 54 .103.024 5.688.145 313.802.809.823 479.305 4.483.831) 429.872.897.531 (83.491.501.622.214.171.124 137.294 7.329 12.809.148.118 11.593.762.504 60.599 6.355 25.491.813 104.252.471.697.916) 151.457.227 470.
909.912.500 148.866.713 922.633) (101.916 10.417.739) 679.101 212.104) (52.187) (91.000 retaiNed earNiNGS 429.468.990) (5. 254.120.400 (9.236) (9.678.766 (102.400) 7.787.634 (12.811.381 56.038.818) (228.213 tOtal Nrs.456.889) (111.148.482) 11.809.048) 385.342. 2066/67 Nrs.018) 81.272.842.700 (6.273.717.500) 224.866 29.091) 44.540) (92.006.Y.103.422.000 STATemenT of CASH FLOW For the year ended 32 Ashadh 2067 (16 July 2010) ParticularS NrS.134 125.651.700.057.259.820) (846.407.211 (7.275.768 137.048) 1.646.909.109) (104. 2065/66 Nrs.285.669.367 3.770) (184.802.831) 326.800 GeNeral reServe 148.802.734) 137.601.214) (145.807 77.112.922.202) (17.593.659.330.691) (675.586 (83.591) 23.017 (251.122.905.842.317.500) 224.106 26.077.236 18.503.006.430) (107.919) 6.241.593.392.491.103.922 31.897.701 (220.232.922.423) 323.809.248.027 601.001 7.481) 27.641) (9.501.866.329) (12.958 (18.373.999.286 83.651.992 (97. f.905.563. 1.196 90.356.992) 7.682 (11.700 83.547.766.770) (184.132 313.902) 228.572) (137. 2067 Share caPital 839.945 (115.571 (970.786 (87.008) (30.729.228 6.246.967.392.109 104.232.247 5.085.800 (83.963.700.945 (115.114 (82.700) (3. Cash Flows from Operating Activities: Profit (Loss) before Bonus and Tax Adjustment for: Ordinary depreciation depreciation charged to Grant aid in reserve foreign currency exchange (Gain)/loss interest expenses interest received dividend received Provision on loss in investment (Gain)/loss on disposal of Stock Written off of assets Operating Profit before Working Capital Changes decrease/(increase) in debtors & accounts receivable decrease/(increase) in Stocks decrease/(increase) in advance & deposit Paid increase/(decrease) in creditors & accounts Payable increase/(decrease) in advance & deposit received decrease/(increase) in deferred revenue expenses Cash generated from operations interest Paid foreign currency exchange Gain/(loss) Bonus Paid tax Paid Prior Year’s adjustment Net Cash Flows from Operating Activities (A) Cash Flows from Investing Activities: Purchase of fixed assets investment in Share decrease/(increase) in Work-in-Progress interest received dividend received Net Cash Flows from Investing Activities (B) Cash Flows from Financing Activities: increase/(decrease) in Grant aid in reserve increase/(decrease) in long term loan dividend Paid Net Cash Flows from Financing Activities (C) Net Changes in Cash & Cash Equivalents (A+B+C) Opening Cash and Cash Equivalents Closing Cash and and Cash Equivalents f.866 55 .294 (607.633.572 137.154 257.272.682) 30.257) 160.024 53.952.498.483.912.964.400.407.Butwal Power Company Limited Annual Report 2010 STATemenT of ChAngeS IN EQUITY For the year ended 32 Ashadh 2067 (16 July 2010) ParticularS last Year’s Balance addition for this Year 10% Stock dividend dividend for the Year Profit for the Year Prior Year’s adjustment Balance as on 32nd Ashadh.Y.393.305 (30.310) (197.188 (167.701) 21.
8.400.781.Y. 148.000.700.200 9.781.600 25.500. 2 f.600 16.000 83. 2066/67 Nrs.546. 2065/66 Nrs.900 55. Norway united Mission to Nepal Nepal electricity authority Nepal industrial development corporation employees General Public Purna Prasad adhikari Balaram Pradhan Suman Basnet Total f.763. General reserve retained earnings Total f.057.200 16.100/.. Authorised Capital: 80000000 Shares of rs.978.400.748.201.000.700 Reserve and Surplus ParticularS NrS.500 5. 1 f. Schedule No.900 504. 2065/66 Nrs.000 1.100/.each Paid up Capital: Shares at face value of rs.820.000 5.900 23.500 76.586 56 . 2066/67 Nrs.000 5.300 50.275.421.000.213 533.700 5.500 922.000 429.746.861.Butwal Power Company Limited Annual Report 2010 Schedules to the Balance Sheet & Profit & Loss Account Fiscal Year 2066/67 (2009/2010) Share Capital ParticularS NrS.000.000.100 83.100 93.586 578.821.500 578.500 5.Y.100 636.Y. 100 each Government of Nepal Shangri-la energy limited interkraft Nepal a.120.000 1.690.000 839.905.501.967.213 Schedule No.Y.000 1.903.S.100 554. 148.000 385.each issued capital 16900000 Shares of rs.700.100 8.400 5.
489 174.043 374.e.545 241.423.791 9.634 600.595 16.369 43. 3 f.156.893 286.198. 2066/67 Nrs.960 378. Pyuthan Bangesal vdc ddc. 18.341.484.862 27.818 646.466 1.566 2.552 29.896.550 334.238.808 1.453 Schedule No.475 953.631 129.451 999.172.595 2.208 449.Y.097 489.776 193. Pakala Sari vdc NePal telecOM.816. 2065/66 Nrs.271.468 172.014.616 80.709 698.066 535.697 711.036 69.575 625.531 57 . uMN PcS assistance for rural electrification uSaid Grant for rural electrification uSaid Support for reGdaN JrP Grant for enhancement of Power Plant NMfa Support for reeP KadOOri vdc udaypurkot vdc dhungegadhi vdc hansapur vdc dhakabang vdc Bhingree vdc Markabang vdc dharampani vdc akladi vdc Kalikakot vdc Banethok deurali vdc Sorek vdc tindobate vdc Sekham vdc darchha vdc rampur vdc heklang vdc Kuwakot vdc Gejha vdc Walling (Pension camp) Sirsekot vdc dhapuk vdc Nepal telecom (Banethok) Sakhar vdc Gandakot vdc Narange dWP.Butwal Power Company Limited Annual Report 2010 grant Aid in Reserve ParticularS NrS.505 62.Y. NOrad Grant for JhereP ii a . 16.857 1.424 1.722 16.656 18.521 84.046.915 111.007.400 173.960.206 1.586 268.234 1.474.810.r.400 588.870.345 186.925 689.175 19.919 112.968 1.108 770.025 694.241 72.421.573 327.481 588.275.085 28.202.346 218.374 9.161.arghakhanchi Total f.238 283.087.831 1.246.582 391.015.
050 12.494.797.428.198 45.450.270.505 (35.296 (85.991 5.888 576.481) (44.783.331 200.439.001 599.399 6.325.778 10.670.309.614.793.713 4.323.407.117.371 58 .787 185.179.407 64.231.493 375.000) 17.841 (6.425 51.123.646.391 1.630 109.569.939.577 6.307 160.078) 230.649 185.568 867.195.324 129.089.149 114.216 1.201.605.766.838.554.574.209 38.518) (3.805.130) 4.712.760.532.882) 514.133.364 20.352 150.823 591.255.662 6.534.555 634. 2066 dePreciatiON adjustment during the Year Provided during this Year as at 32nd ashadh.448 14.753 3.573 389.154.291.568.140 335.420 318.835 1.720 100.572.614.431.095.043 45.650.947.865.800.436.697.368.974 49.687.405.812 1.074 126.96.36.1997 19.170) (55.080.226 9.176.401 552.400 1.446 3.432 465.269.170.451 (35.574. 2067 Schedule No.369.947.454 740.289 (1.320 9.224 150.993 (9.554.819 4.491 1.803.440) (948.298 (103.924 50.000 1.020 7.490 20.400 152.471.726.027 5.919.341.785.532.391 110.726.621) (12.413 7.855 6.553.013.212 2.Total i ii : Grant Aided Asset transmission line distribution line Power Plant electro-mechanical equipment switching station sub-station land transmission sub-station Sub .652 5.015 222.841.448 3.272.617.400 2.997. as at 31st ashadh.642.507 805.038 704.676 1.401 450.767 114.568 18. 2067 nrs.025.882) (44.191 174.010 1.254.532.012.334 7.014 2.341.906 15.432 6.228.633 36.338 29.196.619 601.000 15.574.448 342.892 127.164 11.078. 2066 nrs.489.209.025 64.712.333 19.292.Quarters Power Plant electro-mechanical equipment Power Plant civil Works switching station sub-station transmission line distribution line Sub .395.552.663 1.250.609 (885.014 5.013 23.388.215.751.564 23.217.339 50.533.870 154.309.084 64.000 49.654 765.433 1.746.000) 3.493 3.402.899 2.272.185 11.547.892 188. Group A : Property and Power Plant: i : BPC Funded Asset land access road suspension Bridge guesthouse.532.614.170) (635.311.637 1.976 2.823.601 441.415 14.Butwal Power Company Limited Annual Report 2010 fixed Asset & depreciation GrOSS BlOcK Particulars as at 31st ashadh.700 (8.656.489 782 85.493 19.946 588.957.976.611.256 (85.683.827.094 5.085.542 151.439.574.380.109.631.490 609.078) 642.052 1.319 9.432 1.615.185 11.551 319.423 9.986.838 7.760.874.830 60.190.597 21.507.667 32.718.057.929 5.640) 1.668.214 500.000 3.682.260 1.976 781.502.Total ii Total B (i+ii) Group C: Vehicle vehicles Group D: Workshop Plant and Equipment Workshop Plant & equipment construction equipment distribution networks Total D Group E: Intangible Assets computer software Grand Total (A+B+C+D+E) Total Asset BPC Funded Total Asset Grant Aided 4.601.260 43.621) (12.983 1.368.409 305.689 1.488 8.378 922.625 601.508) (184.482 13.207 569.010 1.187.218 3.906) 37.424 542.433.440 172.231.669) 12.808.178 (2.603 6.109.874.547 1.479 5.920.766.110.289 85.415 (558.373.838.280.752.577 7.000 50.996 9.640) 15.228.offices.534.064) 114.376) (6.663 319.519 340.699) 13.123 41.847 21.384.709 2.854 41.000.319 9.922.320 9.655 (225.260 35.342.803.576.185.333 17.433.000 3.615 1.905.922.415 342.340.190 127.064.313 1.975 152.653.167.Total i ii : Grant Aided Asset office equipment Sub .344 51.227.129 9.576 64.802.122.061.355.260 1.511) (5.769.741.399.214 42.267.222.571 98.982) 2.010 1.141 1.709.965.564.021 73.544 8.836.293.513 577.600 1.725 1.149 4.258 34.017 18.071 41.961.268.5188.8.131.52.659 33.101 83.536 48.167.948 1.267 10.241.779.963 1.000.229.121.517 12.654 546.812 20.115.961 8.676.116 14.357.970 110.786 867.101 6.134.800.684 7.525 127.667 30.557 32.455.343.139.stores.982) (55.199.597 456.200 1. 2067 as at 31st ashadh.000 2.559 10.108.085.756.845.993 (3.522 15.760.689) (9.793 499.800 2.206.112 145.586.683 (36.426 117.573.125.262.333.406 1.211 18.064) 2.069.607.929 2.304.000 1.280.401 166.851.528 130.394 (36.457 502.665.243.520 171.323.681 (1.304.086.310 53.632.368 649.682 637.900) (311.681.241.401.707.367 50.933 44.972 128.000 87.611.800.663 21.757 318.741.Total ii Total A (i+ii) Group B: Office Equipment & Furniture i : BPC Funded Asset computer & accessories Furniture & Fixture office equipment Sub .569) 390.031.144.128 131.532. 4 Net BlOcK as at 32nd ashadh.603.684.147 9.054 5. 2066 addition during the Year adjustment during the Year as at 32nd ashadh.360 15.699) (23.868.564 23.542 945.385 1.992 456.284) (269.984 1.314 169.760.897 519.611.472.811 33.532.441 68.699) (23.771 56.671.224) 1.654 170.699) 70.984 1.525.043 9.440.916 50.481.646 1.574.449 6.314 220.960 11.911 50.961.360.004 14.110.339.638.708.
748.118.624 830.626 425.047 6.680 830.244 31.374. Schedule No.350 188.388 7.948.202 26. lower Manang Marshyangdi heP due deligence .966 29.154.718 1.lower Khare due deligence .997 43.689 16.Butwal Power Company Limited Annual Report 2010 Work in Progress ParticularS NrS.584.268 3.341 26.876 7.860 95.618 12.Super Madi dordi i .107 302.454.942 782.850.436 34. 2066/67 Nrs.383. 3.090 36.540 5. 2065/66 Nrs.Y.168 50.492 782.001.194 1.due delligence Karnali due delligence uper Mai khola hP construction Mgmt of Sikta irrigation Project Guna ShP upper tamakoshi reports (PMd) Sub Total Total f.689 37.403.610. 5 f.000 35.746.047 5.666 287.030 48. A: Capital Work in Progress: rural electrification on Mfa Grant (reeP) Galyang-Syangja line upgrading Online Sediment Monitoring System h/W BPc New Office Building Sub Total B: Project Work in Progress: BPc distribution expansion andhikhola upgrading Screening & ranking Projects demand Side Managemet Study Bhim Khola ShP KaBeli .510 24.628 12.066 60.896.513.395.Y.411 1.405.621 59 .350 211.059.129.a Project Nyadi hydropower Project tadi Khola hP Sustainable land use and agro ent.
931.000 14.Y.600. 2065/66 Nrs.065.000.498.837 94.000 4.Butwal Power Company Limited Annual Report 2010 Investment in Shares (unlisted companies) ParticularS NrS.202 Schedule No.549.000 57.656 28.430 874.100.742 807.Y.133.465 99.838 22.000 38.400.000 10.086 14.021.210.400.481 92.500 8.961 18.723.599 Stocks ParticularS NrS.Y.512.000. limited Kabeli energy limited hydroconsult Pvt.035 44.722.000. A: Shares are at face value at cost himal Power limited Nepal hydro & electric limited Jhimruk industrial dev. 2066/67 Nrs.481 104.000.073 126. 7 f.000.500.461 71.144.000 639.800 14.245 180.580.000 50.000 4.000 10.850 110.400.400.500.000 500.580.543.461 71.000.000.931.000 10. 2065/66 Nrs.130.867 34.761 18.000 57.000 8.418.985 102.000 1. 10.583.000 734.110 60 .574 48.583.915.000.249.000 1.641 874. limited Kirne heP Kabeli energy limited Sub Total Total f.418. limited Sub Total B: Advance/Investment toward Share Khudi hydropower limited Nyadi hydropower limited Keton hydropower limited hydroconsult Pvt. General Stock/Office Supplies/consumer Service item Stock of electric Goods Power Plant Simulator/Power house equipment t/l & d/l Stock Steel Stock Gi fittings fuel/lubricants vehicle Spareparts Medical Stock Stock at Site Power house equipment (JrP Grant) Total f.Y.000 50. center (P) limited hydro lab (P) limited Khudi hydropower limited Khudi hydropower limited (Preference Share) BPc Services limited Nyadi hydropower limited Keton hydropower limited Jumdi hydropower co.838 706.732 479.693 5. 434.698. 15.139 44.154 5.393.000 72.000 4. 6 f.500 683. Schedule No.703 434.551 35.000 639.905 39.243 36.600.932 354.422. 2066/67 Nrs.500.000 73.000 1.
185 639.040.380.359.005 1.000 3.048 30.060 11.804.228.811 5.255.107 377.143.599.250. 739.368 78.701 5.732 1. 8 f.906 1.280.500 3.530.768 30.706 287.365 40.170 1.935.053.319 342.236 93.500 285.532 3.140 86.843 4.619 506.998.183 95.810 5.500 2.825 1.532 10.000 3.238 386.239 332.740 Schedule No.669.434 4.424 46.400 31.246.945. 2.582 32.306 148.761 851.751 848.689.Butwal Power Company Limited Annual Report 2010 Debtors & Accounts Receivable ParticularS NrS.Y.Wrc Joint venture hydroconsult Pvt.155.214 53.678.825.733.717 5.374 61 .917 577.Silt Joint venture BPc .045 17. Sundry debtors Nepal electricity authority Provision for doubtful debt (Nea receivable) local consumers Other receivables accrued interest retention receivable Bank Guarantee Margin receivable from uSaid vat receivables (reGdaN) Sulav co-operative Society limited Norwegian embassy dhungegadhi vdc hanspur vdc Markabang vdc dharampani vdc Bhingree vdc Bangesal vdc Sari vdc dividend receivable from hPl himal Power limited Subsidiaries and Joint Ventures: Khudi hydropower limited BPc Services limited Nyadi hydropower limited Keton hydropower limited BPc . 2065/66 Nrs.762.691 171.843 4.283.heS . limited Kabeli energy limited Total f.137 30. 2066/67 Nrs.Y.228.999 383.945 497.415.
000 200.306 32.707. 10 f.089 8.N.178 2.397.500 1.363. 9 f.868 46. Power Prepaid expenses Nepal hydro & electric limited ScP hydro international.638 64. 2065/66 Nrs.887. 2066/67 Nrs.648.480 347.819.Y. 25.912 16.924 291.098 139. 13.687.639 347.910.583.726 4.634.649 62 .Butwal Power Company Limited Annual Report 2010 Cash in Hand and at Bank ParticularS NrS. 2066/67 Nrs.158 Advance & Deposit Paid ParticularS NrS.Y.Y.331 254.000.168 118.641.040 234.214 5. lamjung electricity dev.528.121 6. advance income tax loan & advance to Staff Gratuity fund in cit deposits various advances rabina construction/Sharma & co.(ledcO) Prepaid insurance Premium Jhapali Nirman Sewa S.907 383.720 103.000 1.000 3.331 522.Y.247 112.911.246 55.863 Schedule No.237 101. canada NMfa advances l/c related expenses deposit against tax administrative review Total f.500 1. 568.992.910 218.525.996.699 62. co.481.000 584.313.883 Schedule No.834 174.807 50.910 188. 494.500 78.327.805.481 291.193.327.578 422.067. 2065/66 Nrs. Office cash current Bank a/c foreign currency a/c call/time/fixed deposit cheques in hand fixed/time/ deposit : foreign currency (uS$) Total f.000.390.412 216.
074 384.400.337.400.317 3.457.709 52.Y.163 59.842. 2065/66 Nrs.117.072 29.665.421 236.000 2.602 77.007.Y. 27.050.998 Schedule No.730.135 1.474.621 9.432 59.701 167.332 197.157.375) 34.074 576.802 63 .073 1.500 3.702 56.622.882.927.355 4.500.622 63.920 1.123 434.376 187.512 8.216 19.517. 2065/66 Nrs.852.426.505.348 1.199.958.641 36. 11 f. 2066/67 Nrs.429.482 2. 14.650 519.941.652 80. 10.000 2.423.166.034 (36. customer deposit Security deposit advance received from NMfa advance received from andhikhola Bidhyut Bikash advance received from ddc and vdc Total f.775 1.681.000 1. 27.Y.329 4.172 301.207 2.970 5.771 144.Butwal Power Company Limited Annual Report 2010 Creditors & Accounts Payable ParticularS NrS.422. 2066/67 Nrs. Sundry creditors Gratuity fund Payable Bonus Payable community development fund loyalty Bonus fund retention Payable audit fee Payable royalty Payable tdS Payable dividend Payable vat Payable Share Purchase Price Payable (hPl) Share Purchase Price Payable (Keton hP) employees accounts Payable capital Gain tax Payable Nepal telecommunication corporation Welfare fund clearing a/c Provision of expenses Stale cheque cit clearing a/c Subsidiary: Nepal hydro & electric limited Total f.750 2.555.Y.670 270.539.420 Schedule No.829.659.027 1.164. 12 f.439 2.000 5.000 3.650 354.026 Advance & Deposit Received ParticularS NrS.
494.244. 74. 13 f.182 9.011 512.040.564 1.005.878 660.121 92. 2066/67 Nrs.Y. 2066/67 Nrs.813 Schedule No.479 Schedule No. Metered consumers unmetered consumers industrial consumers etc. 2.206.Y.114 8.049 Electricity Sale to Consumers ParticularS NrS.272.000 10.975 7.774.911 Schedule No.660. 25.889 16.679. 1.638.240.Butwal Power Company Limited Annual Report 2010 Provisions ParticularS NrS.246.946.142 Management and Technical Support : Income ParticularS NrS.000 17. 2065/66 Nrs.774.369.267 1.494 2.015 64 . 36.338.Income ParticularS NrS.869 747.524 164.Y.892.709 10. 2065/66 Nrs.Y.404 520.216 45.147. 1.734.899 431.823 Schedule No. 12.123 814.605 1.869 6.796 191.design review Works Kabeli a Project Nyadi hP Works of construction Phase Nyadi hP additional Job Marsyandi iii additional Works tadi khola hP construction Supervision Khl-design review Bhery Babai Project Managemnet Support Service (Nyadi) Managemnet Support Service (Keton) Managemnet Support agreement (Khl) Managemnet and advisory Service (hcPl) Total f.971 87.724 11.944 66.Y.871 55. 42.724 16.520 14.Y. 14 f.443.231. 2065/66 Nrs. 2065/66 Nrs.808.632 7.697.855. Khimti i fish Monitoring Works Nyadi hydropower Project design & construction Supervision of Khudi hP fS & eSia of tamakoshi 2 & 3 hP fS & eia of Marsyandi iii hP tadi Khola hP .096 3. fee and charges Sale of Meter/cutout & accessories Sub-Total f. 16 f.373 766. user’s Organization Total f.976 65.054 770.998 4.204. 2066/67 Nrs. 15 f.535.102.273 8.740. corporate tax for the Year corporate tax for 2060/61(under appeal) Provision of loss in investment Total f.107.000 2.Y.Y.216 37. 2066/67 Nrs.120 Electricity Services .136.471 845.121.
25.810. 2065/66 Nrs.804 1.729 29.522.642.430 88.291.620 585.652 1.199 1.444.030 521.148.4184.108.40.2069 1.779.483 437.862.763.775 4.953. 2066/67 Nrs.172 48.918 20.657.369 139.843 2.764 52. 11.815 65 .285 36.280 11.Mitigation Works royalty transmission line repair & Maintenance expenses Written Off Total f.Y.507 1.Butwal Power Company Limited Annual Report 2010 Generation Expenses ParticularS NrS.982. 18 f. electricity Purchase Staff cost Office Overhead vehicle Operation & Maintenance environment.858. 2065/66 Nrs.462 4.333 Distribution Expenses ParticularS NrS.814.023 101.404 3.640 55.330 4.931 445.001.510.331 326.584.268.087. 22.435 682.681.Y. Staff cost Office Overhead vehicle Operation & Maintenance t/l Maintenance d/l Network Operation d/l Network repair & Maintenance Subsidy on Sales of Meter royalty expenses Written Off Total f.805 137.699.362 4.195 3.685.332.841.688.900 6.458.072.628.088.582.739 5.296 8.299 13. 17 f. 6.367 2.556 7.871 1.830 3.500.Y.840 Schedule No.566 1.059.291 Schedule No.623 14.610 30.540. community & Mitigation Mitigation (JdMP) Power Plant Operation & insurance Power Plant Maintenance deferred expense . 2066/67 Nrs.Y.972 7.762.034 2.
757. 2066/67 Nrs.000 227.574 1.810 70 84.044 59.531 128. feasibility & eia of lower hounge Nyasem Khola ShP due-deligence-Namarjun Madi hP int’l certification Process engineering Minor tasks due-deligence of Baramchi Project Bidding -Khimti ii Project Bidding lower Solu MP& Bdd Khimti-2 category -B due deligence -lower Khare due deligence-dordi i due deligence -Karnali lowe Solu hydroelectric Project Total f. 20 f.760 92.054 10.design review Works Total f.597 1.000 50.436 512.747 12. 2065/66 Nrs.137 60.049.366 1.071.524 360.445.030 9.Y.Y. 150.147. Khare Khola ShP BPc design Guideline Sustainable land use & agro-enter.Y.000 2.681 50.347 129.129 4. 1.527 37.693 194.186 Schedule No.Y.270 12.080 608. - Project Development: Expenses ParticularS NrS.045. 2065/66 Nrs. 19 f.522 14. dev. Khimti i fish Monitoring Works Nyadi hydropower Project Khl-design review design & construction Supervision of Khudi hP fS & eSia of tamakoshi 2 & 3 hP fS & eia of Marsyandi iii hP Kabeli a Project Nyadi hP Works of construction Phase Nyadi hP additional Job Marsyandi iii additional Works Managemnet Support Service (Nyadi) Managemnet Support Service (Keton) Managemnet and advisory Service (hcPl) tadi khola hP construction Supervision tadi Khola hP .850 67.191 10.334 9. 2066/67 Nrs.650 Schedule No. - 66 .Butwal Power Company Limited Annual Report 2010 Management and Technical Support : Expenses ParticularS NrS.585 1.618.922 670.639 2.388 542.
613 1.283 1.836 3.Butwal Power Company Limited Annual Report 2010 Administrative Expenses ParticularS NrS.086.157.622.406 (3.635 11.935.081.170.887 249.562 598.616 2.376.997.431.309.367 18.293 160. 6.690 264.000 285.001 325.098) 3.535 753.829 (4.129 1.Y.368 1.071 2.782 3.348.814 546.556 1. 6.880.320 390.086.397 5.071 2.941.907 42.034 414.219 660.107.648 70.589.544 50.594.745 678. A: CEO’s Remuneration and Expenses B: Staff Cost: Salary allowance Provident fund Paid leave daily Wage Overtime Gratuity insurance festival allowance Performance allowance Sub-total C: Office Overhead: General Office Overhead training and development cSr expenses external audit fee and expenses internal audit fee and expenses iSO and Other audit fee and expenses Board Meeting expenses aGM expenses vehicle O & M expenses consultancy expenses legal expenses Share registrar/related expenses listing fee and expenses insurance and Property taxes communication expenses travel/daily allowance union expenses Write Off expenses technical Support Overhead Overhead charged to Projects Sub-total Total Administrative Expenses f.303 1.767 498.134.878 634. 2066/67 Nrs.000 279.252.992 1.097 762.395.139 3.347 119.465.566.476 2.091.509 333.943 89.903 8.Y.389 653.930 1. 21 f.094 83.293.923) 34.638 285.571.470 1.131. 2065/66 Nrs.577.957 16.359.289.024.771 (59.305 1.422.436.266.727 3.167 9.575 10.053.367) 25.453 10.990.897.287.217.087 720.392.307 39.590 67 .018 3.605 1.808 367.439 3.504 Schedule No.
Khudi hydropower limited Jv of BPc/Silt JidcO Total f.584) (601.950 139.338 Schedule No.284. 11.818 607. 2065/66 Nrs.912 185.297.294 Other Income ParticularS NrS.027 Schedule No. 131.916) Schedule No.896.337 30.487) 509. 143.015 133.015. 22 f.Y. 24 f.Y.798.288 (11. 2065/66 Nrs.928 21. 2065/66 Nrs.Y.483. 2066/67 Nrs.739 68 . 23 f.350 128.677 1. Sale Proceed less: cost of Stock Gain (loss) on Sale of assets/Scrap Materials Total f.115 7.043.078 Gain (Loss) on Disposal of Assets & Stock Materials ParticularS NrS.787 1.920.620) (556.990 1. 7.416 66. 2066/67 Nrs. 21.909 160. 5.896.367 428.540 2.875.Y.Y.875 2.Butwal Power Company Limited Annual Report 2010 Provision of Loss in Investment ParticularS NrS. 2066/67 Nrs.698.408 (5.693 2.875 944.491.000 428. housing Services Guest house income income from Other Sources Personnel Services Store Services equipment on hire Other General Services Total f.Y.
on-going Contracts and Projects Income for ongoing contracts is invoiced as per the contract agreement with the party. while ongoing rural electrification works are shown as capital work in progress. B. Foreign currency assets and liabilities held in foreign currency on the date of balance sheet are given in Nepalese rupees using the buying rate of Nepal Rastra Bank on that date. Its main shareholders are Shangri-La Energy Limited (SEL). 5. Depreciation of office furniture. technology transfer and human resources. and Nepal Industrial Development Corporation (NIDC) with an aim to develop hydropower projects using appropriate training.Butwal Power Company Limited Annual Report 2010 Schedule No. Expenditure on ongoing in-house engineering. Interkraft AS. Revenue grant and related expenses are recognized in the profit and loss account. transmission and distribution lines is provided by using the 69 .000 per unit and plant equipment costing less than NRs. equipment and vehicles costing less than NRs. Foreign currency exchange conversion differences are charged to the profit and loss account.1-MW Andhikhola project. feasibility studies and business development expenses is valued at cost and shown as current work in progress. Office furniture. and it was privatized in 2059 (2003). Government of Nepal (GoN). vehicles and other assets are depreciated using the diminishing balance method at rates prescribed in the Income Tax Act 2058. foreign Currency Transactions in foreign currency are stated in terms using the exchange rate prevailing on the date of transaction. BPC is one of the sponsors of the 60-MW Khimti hydropower project. they are based on accrual and historical cost convention basis. d. BPC developed and operated 1-MW Tinau project. BACKgRound Butwal Power Company Limited (BPC) was established in 2022 (1966) as a private limited company registered under the Company Act 2021 (1965) by the United Mission to Nepal. e. Expenditure on on-going contractual work is shown at cost as current work in progress. grant Aid in Reserve Capital grant received is shown as grant aid in reserve to the extent of asset creation they contribute.10. BPC was converted into a public limited company in 2049 (1993).000 per unit is charged to the profit and loss account in the year of purchase. 5. and 4-MW Khudi project. Capitalisation of fixed Assets Fixed assets are recorded at cost-less accumulated depreciation and all direct costs relating to the acquisition and installation of fixed assets are capitalized. depreciation and Amortisation The depreciation of power plant. Government of Nepal (GoN) and General Public. Nepal Electricity Authority (NEA). Deferred revenue expenditures are amortised in five years while river training expenses are amortised in three years. g. A. equipment. 25 Significant Accounting Policies and notes Relating to the Annual Account for the Fiscal Year 2066/67 (2009/10) 1. Except where otherwise stated. 12MW Jhimruk project. C. SignifiCAnT ACCounTing PoliCieS straight line method as per the Electricity Act 2049. f. Rural electrification networks are capitalized according to actual accumulated direct overhead and direct material costs used in erection and commissioning. 2. inventory Inventories are valued at cost and weighted average costing method is applied to calculate the value of items issued from stock. Grant aid in reserve is reduced by the depreciation of such assets and the same amount is realised as income to balance the expense of depreciation expense in the profit and loss account. Basis of Presentation BPC’s financial statements are prepared in accordance with generally accepted accounting principles and the prevailing rules of the Company Act 2063 (2006) and the Electricity Act 2049. Norway (IKN).
3. PAid-uP ShARe CAPiTAl After Privatization on 15 Magh.7. 70 . The company is listed in the Nepal Stock Exchange Limited since 28 Poush. M/s Shangri-La Energy Limited is BPC’s majority shareholder with shareholdings of 68. 740. 2003).9%.000 a total unrealized surplus amount of NRs. While provisions for gratuity is made in accordance with BPC’s gratuity scheme. 1. RevAluATion of oPeRATing ASSeTS And inveSTmenTS operating Assets The operating assets of the company is revalued at fair market value as on balance sheet date. a 10% bonus is provided for income from other sources. Asset Retirement Obsolete. As per the provisions of the Share Sale and Purchase Agreement. i. investments The fair market value of the investment in shares of BPC on equity basis as on balance sheet date has been assessed as per the financial statements of the respective companies. K.072 has been identified as on balance sheet date.367 have been charged against grant aid in reserve as shown below. GoN issued a 2% shareholding to BPC employees and 10% of shares were sold to general public through competitive bidding. The gratuity amount is paid to the employees on super annuation or separation. Regular employees are eligible for the gratuity scheme after the completion of three years of service. This surplus is not recognized in the financial statement.000 has been identified as revaluation surplus as on balance sheet date. 83. unusable and un-repairable asset/ materials are written off on written down value and disposed off. GoN retained a 9. exceptions to the Basis of Presentation The accounting for the payment of staff medical insurance premium and accumulated leave is made on cash basis.Butwal Power Company Limited Annual Report 2010 h. The difference between fair market value NRs.365. Provision for employee Bonuses A 2% bonus on electricity income is provided in line with the provisions of the Electricity Act 2049.456.192.09% shareholding. J. In line with the Bonus Act.800. The issuance of 3:2 right share to the shareholders is in process. The difference between investment at cost and the net worth value of the companies. 634. 2005). effect on net worth With this revaluation. 5.238.547. 2061 (12 January. gRAnT Aid in ReSeRve The depreciation on grant aided assets for the year of NRs. 10% Bonus share has been distributed to the shareholders which increased the paid up share capital by Rs. 100/per share. 1. Retirement Benefits Retirement benefits for employees includes the provident fund. the actual gratuity is computed based on the basic salary at the end of the fiscal year and an additional gratuity for the year is provided as revenue expenses. the net worth of BPC as on balance sheet date is Rs. citizen investment fund and gratuity fund scheme.549.205. As decided by the 17th annual general meeting of the shareholders.382. 3. 1090/- per share. a total unrealized surplus on such investments amounting NRs.823. 4.375. 2059 (29 January.000 and carrying value NRs. The face value of share is NRs. Periodic contributions made to the provident fund are charged to revenue.909. This surplus is not recognized in the financial statement. The closing market price of the share as on balance sheet date was NRs.
000 729.850.000 72. installs.500.500 434. HPL was established on 2049/11/10 (21 February.502 715. with the shareholdings of Butwal Power Company Ltd. tests and commissions hydro-mechanical and electro-mechanical equipment.) NOrad grant for Jhimruk hydroelectric and rural electrification center uMN PcS contributions for rural electrification uSaid grant for rural electrification uSaid support for rural electrification Global development alliance of Nepal Jhimruk rehabilitation Project grant for enhancement of power plants NMfa Support for rural electrification expansion Project local vdc/community Total Grant Aid in Reserve Less: Inventory items under JRP Grant Total Grant Aided Assets 1.000 4.600. It designs.395 100 100 100 100 100 100 100 100 100 100 100 100 297.100. This obligation will terminate upon the full settlement of the loan by 2011 A.Butwal Power Company Limited Annual Report 2010 SOurce Of GraNt dePreciatiON (iN Nrs.139.200 71.519 1. for a loan for the Khimti-I Hydropower Project under separate agreements with HPL.000 14.978. Of ShareS uNit rate (iN Nrs. GE Energy (Norway) AS.000.000 80. SuBSidiARieS And JoinT venTuRe A.000 639. 71 .453 (874.000 8. including HV sub-stations.000 57.000 10.400.085 28.500.000 81.E. center (P) limited hydro lab (P) limited Jumdi hydropower co.421.931.161.000 8.857 22. The company manufactures and refurbishes hydro and electric power equipments.000 14.000 50.915.402.000 6. 2. investment in Shares BPC has equity investments in the following companies valued at cost.000 1. NaMe Of cOMPaNY NO.547. 6.972 6.172.000 1.367 16.000 72. Hydro) with the objective of developing the project under the build.S.400.600.500 16.) face value (iN Nrs.873 739. USA.000 10. Himal Hydro and General Construction Ltd.423.22 90 54 80 100 24.000 8. and Kvaerner Energy AS (now G. transmission line towers and poles and heavy steel structures.000.399 7. own.000 57.150 144.378 billion worth of electricity in FY 2066/67 and has a net worth of NRs.690 billion.0 20.400.88 51.014. Butwal Technical Institute.03 himal Power limited Himal Power Limited (HPL) owns and operates the 60-MW Khimti I Hydropower Project. operate and transfer (BOOT) approach.000.) cOSt Price (iN Nrs. nepal hydro & electric limited BPC established Nepal Hydro & Electric Limited (NHE) in 2042 B.000. ABB Energi AS (now ABB Kraft). manufactures. 1993) by BPC and the Norwegian companies Statkraft SF. 2000).0 19.000 4.263. Alstom Power Norway AS.000 639.505 62.510 1563.388.915.000 8.656 18.) hOldiNG (%) himal Power limited Nepal hydro & electric limited Khudi hydropower limited Khudi hydropower limited (Preference Share) Nyadi hydropower limited Keton hydropower limited Kabeli energy limited hydro-consult Private limited BPc Services limited Jhimruk industrial dev. inveSTmenTS.580.800 504.461 71. 2057(5 July. HPL sold NRs.400. WTC and the lenders.) clOSiNG BalaNce (iN Nrs.594.000 50..275.837 173.000 45.000 100.481) 172. BPC has pledged its shares in HPL as collateral in Wilmington Trust Company (WTC).3 60 97.000 10.791 9.100. limited 2.722 16.583 467.000.156.000 576.000. ASSoCiATeS.169 530. which began commercial operation on 27 Ashad.D.580.314 1.
JIDCO promotes skill development among the locals and is involved in various community and enterprise development programmes. 225 million* and its net worth is NRs.681 were transferred to HCPL against share investment. HCPL’s turnover in FY 2066/67 is NRs. Khudi hydropower limited Khudi Hydropower Limited (KHL) owns the 4-MW Khudi Power Plant. to build. PEEDA has been supporting the HCPL by providing foreign professional engineers. BPCSL’s turnover in FY 2066/67 is NRs. Shareholders agreement has been signed with Everest Power for equity participation. BPC is the major shareholder of KHL. Keton hydropower limited BPC has purchased 90% shares in Keton Hydropower Limited for the development of the 42-MW Marsyangdi-III Hydropower Project in the southern part of Lamjung District in western Nepal.135 net block and current WIP (net) NRs.99 million.649 million* worth of electricity in FY 2066/67 and its net worth as of 32 Ashad 2067 was NRs 88.098 million and its net worth is NRs. own and operate the 20-MW Nyadi Hydropower project in Lamjung District. The project has optimized electricity generation at 30 MW installed capacity.Butwal Power Company Limited Annual Report 2010 The turnover of the company in FY 2066/67 was NRs. 24. Everest Power is in the process of obtaining approval of DoI for Foreign Direct Investment. HCPL is a consulting engineering service provider promoted by PEEDA.. Currently BPCSL provides operation and maintenance services to KHL and is negotiating with several power plant owners for undertaking O&M service contract. BPC’s equity investment in this company has increased by NRs. 8. own. Everest Power will hold 29% shares in NHL.5% over the interest rate of the principal loan as per Article 1. which was established in FY 2063/64 to provide operation and maintenance services to hydropower plants. KHL sold NRs 79.200 in this year.416. subsidiary company of BPC.82 million*.222. The project has been optimized at 37 MW. is a special purpose vehicle established for the development of 30 MW * Provisional Kabeli-A Hydroelectric Project located at Panchthar District in Nepal.2. Kabeli energy limited Kabeli Energy Ltd. BPC’s preference share of Khudi is a redeemable cumulative non-voting class of shares with an annual dividend of 2.24 of the Shareholders Agreement.000 from HCPL in consideration of the transfer of business assets of BPC Engineering.19 million and its net worth is NRs. Other shareholders are Lamjung Electricity Development Company Limited (LEDCO) and SCP Hydro International Inc. Jhimruk industrial development Centre (P) limited JIDCO was established in 2054 B. The project is under PPA negotiation stage. 8.65 million. hydro-consult Private limited The engineering business of BPC has been operated through HCPL. 34. in Pyuthan District as part of BPC’s corporate social responsibility initiative.265. The conversion of the preference share into ordinary shares is in process. 72 . 9. An asset worth NRs. 10.S. BPC is the major shareholder in Keton Hydropower Limited. BPC acquired 80% share of this company by transferring its engineering business assets in HCPL.000. nyadi hydropower limited Nyadi Hydropower Limited (NHL) was established to build. BPC is the major shareholder of NHL followed by LEDCO. 1. 10. which began commercial operation in FY 2063/64. Canada. operate and transfer (BOOT) the Project as per the Project Development Agreement (PDA) signed with the Government of Nepal (GoN). 197 million*. BPC received share certificate worth NRs. The engineering business unit of BPC has been merged with HCPL with effect from 1 Srawan 2066. BPC Services limited BPC is the sole owner of BPC Services Limited (BPCSL).
735. aMOuNt (iN Nrs. 12 million*. The client of the project is DoED. Loss on JV for the year is NRs.197.960.001 5.764 5. It assists water resource engineering professionals by conducting the physical hydraulic model studies needed to validate the design and operation modality of headworks. B. Devighat Intake.28 million*. 8. 2. to conduct a feasibility study and an environmental impact assessment of the Madhi. The net worth of the company stood at NRs.605. and others.32 million rupees inclusive of VAT. ParticularS Inkhu and Budhi Ganga rivers small hydropower project. with other two JV partners.867 Shall be written off within 3 years 1/3 amortisation (1st year) 1/3 amortisation (2nd year) 1/3 amortisation (3rd year) 1/5 amortisation * Provisional 73 .613 and Retained earnings on fiscal year end stood at NRs.Butwal Power Company Limited Annual Report 2010 In FY 2066/67.122. Participation in Joint venture BPC-heS-wRC Joint venture BPC is the lead partner of the JV.114 2. C. Jhimruk Intake. The financial statements of the BPC’s subsidiaries and JV’s are attached as annexes 1 and 2.71 million. hydro lab Private limited Hydro Lab Private Limited was established in 2053 B.8. 15.69 million*.229. BPC’s primary responsibility is for the Madi Khola Small Hydropower Project.956.644.547. 7.681 and Current WIP (Liability) NRs. 35.50 million. Provision of loss in investment Provision of loss has been taken in proportion of BPC’s share investments in subsidiaries and in JVs as per the audited / latest available financial statements. Jumdi hydropower Private limited Jumdi Hydropower Private Limited (JHPL) is established to develop and operate the 1.75 MW Jumdi Khola Small Hydropower project. Shareholders agreement has been signed with Sulabh Co-operative Society Limited in March 2009. which is contracted at NRs. JIDCO’s turnover was NRs. Hydro Lab conducted model studies for Upper Tama Koshi Hydropower Headworks.137.870. 1.731. Khudi Hydropower Headworks. The contract amount is NRs. defeRRed Revenue exPendiTuRe The details relating to deferred revenue expenditure are given below. 3. At the end of the fiscal year its net worth was NRs. The turnover of Hydro Lab in this fiscal year was NRs.877 1. 71. CASh in hAnd And AT BAnK / BAnK oveRdRAfT Cash in hand and in the bank includes a foreign currency balance of US$ 2.26.631 1.000 5.630 11.007. 9. 2.189. The overdraft/ bank loan facility from banks have been obtained against the security of USD fixed deposit receipts and proportionate hypothecation of Jhimruk Power plant assets. Melamchi Drinking Water Headworks.S.773 150.000 were transferred to HCPL on 1 Srawan 2066. ReCeivABleS And wiP Current WIP (asset) NRs.) reMarKS Last year’s balance Addition for the year Jhimruk river training Total Less amortization Jhimruk river training Jhimruk river training Jhimruk river training vSat expenses Total amortization for the year Balance to be amortized 5. to carry out research and provide consulting services in hydraulics and sediments.
073 (7. 13.724 BPc’s taxable income for the year after tax audit may differ from the figures mentioned above which are as per self tax assessment.) total electricity generation total sales Sale to Nea Sale to local consumers internal consumption transit loss Purchase from Nea 63.182. himal Power limited Total 1.472) 12.968 12.Butwal Power Company Limited Annual Report 2010 10. hence.360) 294.772 25.406 (4.150 39. PROVISION FOR CORPORATE TAX as per electricity act 2049. ParticularS taxaBle iNcOMe tax PrOviSiON Jhimruk center (for 11 months) andhikhola center Other Sources Total 100. income tax on the sale of electricity generated by Jhimruk power plant was exempted upto end of Shrawan 2066.896.520 50.) iteMS/ServiceS PrOcured Mercantile communications (P) ltd 1.992 137.858. BPc follows generally accepted cash basis of accounting principle.677.588 14.022 245. will be adjusted from retained earnings.976.152.971. tax provision has been made on income of Jhimruk Power Plant for 11 months only.802. DIVIDEND INCOME dividend income net of tax during the fiscal year are as under: NaMe Of cOMPaNY Nrs.327 56.206. uS dOllar equivaleNt Nrs. the dividend received from hPl is net of tax.) total electricity generation total sales Sale to Nea Sale to local consumers internal consumption transit loss Purchase from Nea 11. TRANSACTIONS WITH RELATED PARTIES Business transactions were conducted with related parties in line with the Section 93 (3.610.679. income tax on the sale of electricity generated by andhikhola power plant was exempted until 18 Jestha.411 59.554 5.c) of the company act and as per BPc rules and regulations.312 2.848 126.053.611 3.251 (1. SALE/PURCHASE OF ELECTRICITy: ANDHIkHOLA POWER PLANT ParticularS KWh aMOuNt (iN Nrs. no tax provisions has been made for this income.305 2.497. difference if any.800.992 in booking the income from dividend.430.257 137.937 Proprietary vSat service 74 .267. 15.170 25.033.153. NaMe Of traNSactiON PartY aMOuNt ( iN Nrs. ADMINISTRATIVE EXPENSES the expenses of the head office. 14.713.924.916 (798.691 24.106.813) KWh aMOuNt (iN Nrs.802.294 182. hence.620 20. SALE/PURCHASE OF ELECTRICITy: JHIMRUk POWER PLANT ParticularS 38. Butwal office and those of the operations support offices are treated as administrative expenses.227.280) 92.725.151. 2063.765.222.
the company is being imposed additional tax liabilities. 2006.395 66.409 repair and maintenance of power plant Management support services Management support services engineering and management support services engineering and management support services lab and test Services engineering and management support services Management support services 17. the status of this support as on balance sheet date is as follows.388 4.158 has been adjusted from advance received from NMfa and the BPc portion of JdMP. REEP AND THE JDMP PROJECT UNDER FINANCIAL SUPPORT OF NORWEGIAN MINISTRy OF FOREIGN AFFAIRS.688.571 2. BPc signed an agreement with the NMfa on 30 November.482 12.1 of the JdMP final inception report approved by NMfa on 10 September.618 (including BPc portion of Nrs.572 883.681.716 BPc will retain ownership of the extended distribution system (reeP) but ownership of the infrastructure project (JdMP) will be transferred to the local community after the project is completed (as per clause 3.618) is capitalized.Butwal Power Company Limited Annual Report 2010 16.300 18. 18.688.482.484 29.411.914 60.591. 51.438 56.825.685 9.112.832 2.376.730.285 959.411.894 2.158 40.485 47.522. Nrs. Nrs.360 44.710 24.065.286 545. 14.887 31. PROVISION FOR HOUSING FACILITIES No provision has been made for staff housing facilities as BPc provides housing facilities to its staff at site offices and housing allowance is being paid to the employees in the remuneration package.208.843 26.848.363 906.318 363.301. ParticularS NMfa cONtriButiONS (iN Nrs.200 5.058.492 1.321 188.884. the NMfa portion of JdMP.556 has been written off as a part of mitigation expenses. to get the Norwegian Government’s support for rural electrification and for the mitigation of the adverse impact of diverting water to the Jhimruk power plant at downstream areas.044 29.080. CONTINGENT TAX LIABILITy as per the tax assessment notices received from the large taxpayers Office of the GoN. TRANSACTION WITH SUBSIDIARIES following transactions were carried out with the subsidiary companies: traNSactiON With PurchaSe aMOuNt (iN Nrs.958.260. community contribution is shown both as income and expenses in line with the grant provision.049.064. the status of which are as under: 75 .) Nature Of traNSactiON Nepal hydro & electric limited Khudi hydropower limited BPc Services limited Nyadi hydropower limited Keton hydropower limited hydro-lab Private limited hydro-consult Private limited Kabeli energy limited Total 26. the costs under reeP of Nrs. the company has filed legal case against the assessment orders.1 of the reeP final inception report and clause 5.) Sale aMOuNt (iN Nrs.789.111. 2. 19. 9.802 13.) BPc cOMMuNitY cONtriButiON tOtal fund received during the year interest earned Total NMFA Grant for the year funds used (expenditure) reeP JdMP Fund used for the year Fund surplus for the year Fund balance b/f Total NMFA Fund balance 65.556 15.270.494. 2007).770 1.166.
121.4. 5.1 to 2059.000/-.895.422 loss provision arises from the investment in subsidiary companies and Jvs. the estimated project cost is about uSd 67 million. deferred liabilities: deferred revenue expenditure Nrs. the following items have given rise to deferred tax as per the financial statement a. BPc owns 90% of stake in Project company and the remaining 10% by private party.644.477. it is limited to the foreign currency exchange variation incase of specific spares and original equipment manufacturer’s spares from abroad.78% of Nhl shares respectively. 23. Figures of the previous year and rounding off the figures of fY 2065/66 have been regrouped and reclassified wherever necessary to make comparison with the figures of fY 2066/67.891. 45.10. all figures are in Nepalese rupees if not otherwise specified and have been rounded off to the nearest rupee.104 d. the capital commitment on BPc’s part on this project is 16 million uS dollars. b) 20-MW Nyadi Hydropower Project: NhP (upgraded capacity 30 MW) is a run-of-river type project being developed over Nyadi river in Bahundada vdc in lamjung district by Nyadi hydropower limited (Nhl).22% and 2. it is subject to market variations. 1. hence no accounting effect for deferred tax has given in the current year’s annual accounts. 76 . after completion of feasibility study of the project. 21. PRICE RISk for purchase of goods. there is no absolute certainty in recouping the accumulated loss of the respective companies in the near future.939 ltPO is in process of revisiting tax assessment as per the decision of ird case filed to revenue tribunal case filed to revenue tribunal the tax assessment for fiscal year 2063/64 and 2064/65 is underway. deferred tax asset effect @20% Nrs.446 17. c) 42-MW Marsyangdi-III Hydropower Project: Marsyangdi iii heP is being developed by the Project company named Keton hydropower limited in southern part of lamjung district.080. 20.649. the estimated project cost is about uSd 56 million.10. CAPITAL COMMITMENTS a) 30-MW kabeli-A Hydropower Project (kAHEP): BPc is the leading partner in this project.3.000. the Project company has signed a Project development agreement with the Government of Nepal for development of the project on BOOt basis.Butwal Power Company Limited Annual Report 2010 PeriOd additiONal tax liaBilitY Nrs StatuS Of leGal caSe fY 2059/60 2059.32 fY 2060/61 Total 237. deferred asset: accumulated Provision for loss: Nrs. for other purchase.365 9.14 2059.867 c. BPc will have an obligation to inject equity of Nrs.128 255. Net Deferred Assets (a-b) NRs. epstein & a a Mirza).15 to 2060. BPc’s capital commitment on this project is 7.39. 7.” (interpretation and application of iaS by Barry J. at present BPc and lamjung electric development company (ledcO) own 97.3 million uS dollars. “the deferred tax assets resulting from temporary differences and from tax loss carry forwards are to be given recognition only if realization is deemed to be probable. DEFERRED TAX Consideration of Prudence for Recognition of Deferred Tax Assets the tax effect of timing differences that results in a debit balance or a debit to the deferred tax balance should not be carried forward unless there is reasonable expectation of realization or there is absolute certainty that future taxable profits will arise. there is no price risk on sale of power as the company has fixed rate power purchase agreement with Nea.971 b.749. 22.
314 3.000.400 10.000.648 20.422.121 less: depreciation 88.000 reserve & surplus (76.493 10.128 Application of Fund Fixed Assets gross Block 541.970 246.426.640.539 10.001.137 780.000 139.303.786 (2.436.1 Relating to the Accounting note # 6 Provisional audited audited Provisional Provisional audited Provisional audited Provisional ParticularS Khudi NYadi KetON KaBeli Nhe BPcSl BPc-heS-Wrc Jv BPc-Silt Jv hYdrO cONSult Sources of Fund shareholder’s Fund share capital 84.640 197.811.748.821.547.000.196.000.703.128.137 1.128 75.471 1.137.242 35.895 8.759 Net Current Assets (82.989.099 61.996 35.895 17.750.000 248.202 46.214 1.607.512.242 74.786 3.925 10.053 1.539 1.547.118.000.867.033 1.409.195 Other Funds mid term & long term debt 304.748.000 16.000 Funds Total Shareholder’s Fund 88.656 1.819) 10.000 16.415 10.352.229.436.343 35.190 756.585 Deferred Tax Assets 6.933 advance share capital Total Other Funds 304.246 11.828.332 Major Repair (Flood) 9.357 8.742.320 256.098 1.000 75.529.019.195 1.403 Current Assets cash in hand and at Bank 1.554.547.051 71.940.245.000 9.220 22.000.904 92.989.000 75.645 125.808 16.930 5.525.819) (901.937.819) 10.359.530.888 89.400 249.045.920 134.030.422.805) Preference share 81.007 3.754.000.400 197.915 17.983 589.571.999.000 77.733.681 26.000.017.000 9.093.000 8.365.000.116.819) (901.418 4.940.245.122.000.616 3.137 (901.932.348 198.115.482.077.053 756.123.736 36.547.115 220.127.116.11 77 .989.867.163.247 Net Fixed Assets 453.531.072.077.505 9.695 599.071 advances & deposits 31.163.542 19.933 TOTAL 392.874 Equipment pending installation capital Work in Progress 1.118.778) 18.433 debtors & accounts receivable inventories Project in Progress letter of credit account Total Current Assets 33.759 advance & deposit received short term loan Provisions dividend Payable total current liabilities 115.314.000.909 122.747 516.493 1.901.531.750.405.741 745.386 249.731.504 Less: Current Liabilities creditors & other Payables 115.502 197.740.254) Pre-Operating Cost 5.580.165 11.000 654.445.784 17.828 1.000 16.898 7.000.750.569 474.721 26.819) (901.650.079 23.187 20.250 617.750.000 50.Butwal Power Company Limited Annual Report 2010 Balance Sheet of Subsidiaries & JVs As on 32 Ashadh 2067 (16 July 2010) Annex .261.000 49.137 1.087 3.892.711.710 32.044 12.371 2.754 75.056.717 289.656 12.815 619.137 1.000 17.047 23.057 1.151.547.216 8.493 10.033 (901.000.654.322.970 77.447.057 2.123.466 83.509 10.454 12.137 110.581.679 8.932.000 8.260 269.000 989.618 842.810.244.728.493 924.188 TOTAL 392.690.068 177.
457 9.768 13.646) (32.525 793.819) (901.322.318 1.768) 944.451 8.490 8.023.173) (32.947) 225.805) 44.646) (32.968.Butwal Power Company Limited Annual Report 2010 Profit & loss Account of Subsidiaries & JVs For the year ended 32 Ashadh 2067 (16 July 2010) Annex .101 12.088 20.022.503 1.646) (32.740.908 314.613) (71.832 1.178.000 1.457 9.254 177.243 (3.383.098.2 Relating to the Accounting note # 6 Provisional Provisional audited Provisional audited Provisional ParticularS Khudi Nhe BPcSl BPc-heS-Wrc Jv BPc-Silt Jv hYdrO cONSult Operating Income sale revenue/ consultancy service Total Operating Income operating expenses Power Plant expenses/ expenses/ cost of sale Total Operating Expenses Gross Profit/ (Loss) interest income other income administrative expenses Income/ (Loss) from Operation Other Expenses depreciation interest expenses Total Other Expenses Income from Other Sources Foreign currency exchange (loss)/gain Profit(loss) on sale of Fixed assets non operating income Total Income From Other Sources Profit ( Loss) Before Bonus & Tax Profit ( loss) from jv Provision for employee’s Bonus Provision for corporate tax Net Profit (Loss) Before Appropriation Profit & Loss Appropriation Account: Appropriation : last Years Balance Profit/ (loss) for the year Total Profit (Loss) Deffered Tax Income less: interim dividend less: Proposed dividend Total Dividend deffered tax for the previous year Balance Transferred to Balance Sheet 79.967 1.365.247 62.613) 1.660.457 1.137 1.539 654.741.539 78 .662 176.338 528.649.613 (18.104.22.1688 666.190.497 1.858) (19.292.012 21.159.724 24.772 39.137 (869.330.968.984 125.405.384.159.756.646 32.307 (57.554.541 793.142 3.188.031.074 9.613) 32.805) (76.012 57.292.980 37.613 71.636 20.493 1.871 22.828.769 944.439) 1.873.989.412 4.273.541 1.215 (515.911) 370.109 2.551 36.000.600.342.828.254 225.798) (19.613) (71.322.927.764 12.646) (901.947) (19.000.618.020 (719.598 9.022.703 177.596 8.000 989.649.613) (71.969.318 37.819) (289.750 (71.939.724 20.392.646 (32.924) 528.493 1.006 43.122 79.486 49.535.088 4.976.956.703 48.469.547.365.798) (719.098.547.497 71.098.292.637.947) (76.074 45.804 (8.646) 24.996 1.955 11.122 21.692.333 440.614 2.681.552.307 654.
Butwal Power Company Limited Annual Report 2010 consolidated financial statements 2010 79 .
138 9.606.969 2.187.645.905 109.460.391 224.144 165.955 4.074.949.151.919 110.082 (866.283 60.422. 922.906.170 2.700 24.Y.118.932 413.948) 1.934. Chartered Accountants 80 .843 240.682.099.089.500 24.854 177.594 298.562.199.803 88.050 944.559 85.282.511.539 1.975.968.055 12.352.048.338.323 14.474.962 1.959 22.214.171.1247.273.715.798 62.693 112.251.061.537 10.005 23.872 525.393 (817.419 36.814 650. f.884 221.039 6. 2065/66 Nrs.029.733.486.528 145.Y.159.431.468.164.567.780 355.600 428.354 133.065.794 2.127.Butwal Power Company Limited Annual Report 2010 Consolidated Balance Sheet As on 32 Ashadh 2067 (16 July 2010) ParticularS I SOURCES OF FUND 1 Shareholder’s Fund Share capital Preference Shares reserve & Surplus funds 2 Grant aid in reserve 3 Minority interest Total Shareholder’s Fund 4 Other Funds Mid term & long term debt advance share capital Total Other Funds TOTAL II APPLICATION OF FUND 1 Fixed Assets Gross Block less: depreciation Net Fixed Assets 2 equipment pending installation 3 capital Work in Progress 4 investment in Shares 5 Major repair (flood) 6 Current Assets cash in hand and at Bank advances & deposits debtors & accounts receivable inventories Project in Progress Total Current Assets 7 Less: Current Liabilities creditors & Other Payables Short-term loan advance & deposit received Provisions Total Current Liabilities Net Current Assets 8 Pre-Operating cost 9 deferred tax assets TOTAL f.653.486.140.984.880 1.852.432 227.087 1.085 9.096 598.052.396 17.116.445 36.213.460.882.787.924.355 84.366.807 300.170.403 259.599.232.738.005.000 518.731.855 2.952.923 2.111.475 1.618 96. 2066/67 Nrs.755.969 839.606.574.050.002.822 36.809 52.855 Ratna Shakya Chief Finance Manager Ranjan lohar Chief Executive Officer Pratap Prasad Pradhan PP Pradhan & Co.127.999.839.656 371.727 44.057.111.175 362.189 2.227.662) 1.182.531.493.000 570.953 485.050.474.671.
866.466 285.527 5.763 388.367 2.979.430.813.125 3. f.763 788.491.145) 215.069.294 54.571.598 (231.237.267.175 376.049 236.698.945 9.945) 12.853 12.378 1.834.393.846 117.214.420.527 673.048 305.917 388.952.813 1.338 7.124 607.175 392.186 768. Chartered Accountants 81 .186 376.334 1.046 92.282.606.847.067.821) 259. 2065/66 Nrs.Y.907 5.813.320.755 788.739 158.583.053 (23.149.247 137.388 (14.956.772 Ratna Shakya Chief Finance Manager Ranjan lohar Chief Executive Officer Pratap Prasad Pradhan PP Pradhan & Co.385 273.720) 260.547.271.462 208.609 (7.214.903 91.483.027 61.Y.898.975.631.282.141 7.778 247.526 102.570.571.077.754.011 144.316.176 28.152) 161.Butwal Power Company Limited Annual Report 2010 Consolidated Profit and Loss Account For the year ended 32 Ashadh 2067 (16 July 2010) ParticularS OPERATING INCOME Sale revenue/ consultancy Service Total Operating Income OPERATING EXPENSES Power Plant expenses/ expenses/ cost of Sale Total Operating Expenses GROSS OPERATING PROFIT ADMINISTRATIVE AND OTHER EXPENSES administrative expenses depreciation Provision of loss in investment interest expenses Total Administrative and Other Expenses INCOME FROM OTHER SOURCES interest income Other income depreciation Being revenue Portion of Grant aid Grant Support for technology transfer Grant for Mitigation from ScPhi dividend income foreign currency exchange (loss)/Gain Non operating income Gain( loss) on Sale of assets & Scrap Materials Total Income from Other sources Profit ( loss) Before Bonus & tax Share of profit from associates Profit ( loss) from Jv Profit before bonus and tax Provision for employee’s Bonus Provision for corporate tax Net Profit (loss) Before appropriation less :Minority interest Profit for the year f.263 7.724.062.307.523.947.681.472.049.843 13.350.819 (8.128.626. 768.190 21.242.802.992 (7.917 400.615.836 25. 2066/67 Nrs.405.439) 239.305 4.050 166.742.
including contingent liabilities. changes resulting from the profit or loss generated by the associate are reported within 'Share of profit from equity accounted investments' in profit or loss.Butwal Power Company Limited Annual Report 2010 notes to the Consolidated Accounts 1. Where unrealised losses on intra-group asset sales are reversed on consolidation. regardless of whether they were recorded in the financial statements prior to acquisition. all subsequent changes to the Group’s share of interest in the equity of the associate are recognised in the carrying amount of the investment. nATuRe of oPeRATionS BPc and subsidiaries' ('the Group') principal activities include the development of hydropower project. amortisation or impairment of the fair value adjustments of assets and liabilities. BuSineSS ComBinATionS Business combinations are accounted for using the purchase method. Minority interests represent the portion of a subsidiary's profit and loss and net assets that is not held by the Group. these changes include subsequent depreciation. amounts reported in the financial statements of subsidiaries. the purchase method involves the recognition of the acquiree's identifiable assets and liabilities. the consolidated financial statements of the BPc Group have been prepared in accordance with ifrS and Nepal accounting Standard. 3. 2. the underlying asset is also tested for impairment from a group perspective. investments in associates are initially recognised at cost and subsequently accounted for using the equity method. unrealised gains and losses on transactions between Group companies are eliminated. provide operation and maintenance services to hydropower plants. 4. hydraulic modelling. associates and jointly controlled entities have been adjusted where necessary to ensure consistency with the accounting policies of the Group. provide consulting services. the assets and liabilities of the acquired subsidiary are included in the consolidated statement of financial position at their fair values. On initial recognition. which are also used as the bases for subsequent measurement in accordance with the Group's accounting policies. 82 . BASiS of ConSolidATion the Group financial statements consolidate those of the parent company and all of its subsidiaries drawn up to ashad 32 2067 (16 July 2010). inveSTmenTS in ASSoCiATeS associates are those entities over which the Group is able to exert significant influence but which are neither subsidiaries nor interests in a joint venture.
11728 Gangadevi Marga . . Operate and Transfer Fiscal year (Shrawan to Ashad B. design & processed by: PrintCommunication.O. Own.S. Box. Energy and Environment Development Association Power Purchase Agreement Rural Electrification and Expansion Project Rural Electrification Global Development Alliance of Nepal Security Exchange Board of Nepal Shangri-La Energy Limited South Lalitpur Rural Electric Co-operative Limited United Mission to Nepal United States Agency for International Development Work in Progress Water Resources Consult (P) Ltd. Limited Hydro Engineering Services (P) Linited Himal Power Limited Interkraft AS. Wilmington Trust Company. events and activities in FY 2067/68 are included where they help to provide a complete picture of performance. In some cases. Buddha Nagar Kathmandu.np JhimRuK hydRoeleCTRiC CenTeR Darimchaur. Syangja Tel: 977-063-460152 Fax: 977-063-460152 liASon offiCe Campus Road. Pyuthan Tel: 994860105 Fax: 994860104 AndhiKholA hydRoeleCTRiC CenTeR Galyang. 4784026 Fax: 977-1-4780994 E-mail: email@example.com. Norway Inland Revenue Department Jhimruk Rehabilitation Project Jhimruk Downstream Mitigation Project Khudi Hydropower Limited Large Tax Payers Office Nyadi Hydropower Limited Norwegian Ministry of Foreign Affairs Ministry of Water Resources Nepal Electricity Authority Norwegian Agency for Development Cooperation Nepalese rupees People.com. USA This report covers data and activities for businesses that are both owned and operated during FY 2066/67. 4782746 CoRPoRATe offiCe P.ABBREVIATIONS BPC BOOT FY DoI DoED EPS GON HCPL HES HPL IKN IRD JRP JDMP KHL LTPO NHL NMFA MOWR NEA NORAD NRs. Nepal Tel: 977-1-4781776. PEEDA PPA REEP REGDAN SEBON SEL SLREC UMN USAID WIP WRC WTC Butwal Power Company Limited Build.) Department of Industry Department of Electricity Development Earning Per Share Government of Nepal Hydro Consult Pvt. Butwal Tel: 977-071-540809 Fax: 977-071-541058 Please Recycle: inside pages of this annual report is printed on 120 gsm woodfree recyclable paper.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.