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Annual Report 2014

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VisionCentre of excellence in engineering services in water resources and infrastructure development with due respect to environment and stakeholders.

MissionProvide quality and cost effective engineering services in water resources focusing on hydropower, environment and infrastructure sectors being a globally recognized consultant.

objeCtiVe1. Develop and provide

quality and cost-effective engineering services to maximize customer satisfaction.

2. Deliver socially acceptable and environment friendly engineering solutions with due priority to local resources and technology.

3. Expand the services and penetrate into new market.

4. Optimum utilization of available resources.

5. Develop and enhance professional skills and knowledge.

6. Enrich the value of stakeholders.

Corporate informationname: Hydro-Consult Engineering Limited

Registration no: 97410

Corporate History: 1986 (As BPC Hydroconsult)

1998 (As HCPL under ownership of PEEDA) 2009

(BPC bought major share of HCPL and transferred

BPC Hydroconsult to HCPL) 2012 (As HCE)

Corporate office: Buddhanagar, Kathmandu

VAt no: 500012033

statutory Auditor: S R Pandey& Co, Chartered

Accountants

Hydro-Consult Engineering Limited (HCE) provides consultancy services in water resource based infrastructure development. We work with water, land and people while respecting the local socio-ecological systems. We investigate, design and assist to develop hydropower projects in Nepal and abroad. We offer our services in water supply, irrigation, and transportation sectors as well.

HCE was established as BPC Hydroconsult for carrying out consulting and engineering business of Butwal Power Company (BPC) in 1986 as a firm of planners, engineers, environmentalists, consultants and technical specialists offering a broad range of professional services. Although, established in 1986, engineering activities of BPC Hydroconsult were used to be carried out directly under BPC since 1966. BPC, founded in 1966, is a pioneering hydropower organization in Nepal. BPC Hydro-consult was structured as Engineering Department of BPC in 1991. In 2009, Engineering Department of BPC was established as an independent entity; Hydro Consult Private Limited (HCPL), by acquiring major shares in an existing firm that was being run by People Energy and Environment Development Association (PEEDA). BPC, along with its ongoing consulting business; transferred goodwill, logo, staff and assets of Engineering Department (BPC Hydroconsult) to HCPL. HCPL was transformed into public limited on September 18, 2012. HCE is the first engineering consulting firm registered as public limited company in Nepal. At present, BPC holds 80% share of HCE and 20 % share is held by PEEDA.

Presently, HCE is a BPC group of companies providing consultancy services in hydropower, water supply, irrigation, roads and bridges. It undertakes all stages of a project study including project planning, pre-feasibility, feasibility study, detailed design, preparation of tender documents, project management and commissioning. Its focus is on development of environmentally and socially sustainable infrastructures based on sound engineering practices, innovation, quality,

and Research and Development by satisfying customer needs. HCE has a well set system of design procedures and quality controls taking into account the environmental issues and socio-economic aspects of the projects. The strength of HCE is its highly experienced expertise in hydrology, hydraulics, water resources, geology and environment. HCE has a competent team of more than 50 professionals that includes Civil, Mechanical and Electrical Engineers; Hydrologists, Geologists, and Environmentalists.

It has a standard office set up in Kathmandu with modern updated software packages and communication systems. HCE has a proven track record of working with national and international research institutions, consulting companies and clients. HCE currently operates from its Head office at Gangadevi marga, Buddhanagar, Kathmandu. The services of HCE include project identification; investigation and planning; pre-feasibility studies; feasibility studies; detail design; geotechnical investigations; due diligence appraisals and technical auditing for financial institutions; environmental and social studies for impact analysis, environmental management, environmental monitoring and environmental auditing; government, commercial and community liaison; financial and economic analysis; and project management and construction supervision. At present, HCE is operating its business in Nepal, Pakistan and Kenya.

Company Profile

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l HCe earned total revenue of nPR 82.60 million in FY 2070/71 (FY 2013/14). the revenue from consultancy business was nPR 81.30 million whereas combined interest and other income was nPR 1.30 million.

l the Gross profit was nPR 32.77 million that was 40% of the total revenue.

l the Profit before tax was nPR. 15.34 million that was 19% of the total revenue.

l the earning per share (ePs) was nPR. 98.29 which was increased by 52% than previous FY.

l the book Value Per share (bVPs) has increased to nPR 395.93 in 2070/71 (FY 2013/14) from nPR 297.64 of FY 2069/70.

l the net worth of HCe has increased by 33% to nPR 46.63 million in 2070/71 (FY 2013/14) from nPR 35.06 million of 2069/70 (FY 2012/13).

l the Current Ratio was 2.83 from 2.28 of FY 2069/70 that was increased by 0.55 this FY.

l the Quick assets was 48.59 million in FY 2070/71 that was increased by near about 50% than FY 2069/70.

Financial Highlights

2068/692067/68

277

.17

194

.93

98.

29

88.3

9

47.

22

81.

21

297

.64 3

95.9

3

2069/70

Book Value Per ShareEarnings Per Share

2070/71

book Value & earning per share

2068

/69

2069

/70

2067

/68

2070

/71

2068

/69

2069

/70

2067

/68

2070

/71

2068

/69

2069

/70

2067

/68

2070

/71

2068

/69

2069

/70

2067

/68

2070

/71

2068

/69

2069

/70

2067

/68

2070

/71

operating income

58,

783,

876

56,

256,

868

59,

585,

745

82,2

44,0

88

Quick Assets

32,

761,

835

26,

082,

891

32,

407,

332

48,

599,

456

2067/68 2068/69 2069/70 2070/71

operating and Administration expenses Ratio

Operating Expenses RatioAdministrative Expenses Ratio

76%

24%

69%

31%

74%

26%

75%

25%

Gross operating Profit

20,

142,

963

26,

101,

603

22,

259,

942

32,

775,

747

1.8

6

1.47

2.2

8 2.8

3

Current Ratio

46,

634,

790

net worth

19,

493,

370

27,

717,

268

35,

057,

862

NPR

NPR

NPR NPR NPR

2066

/67

24,1

90,7

24

2066

/67

4,03

1,63

6

2066/67

106.

559.

44

2066

/67

10,6

54,5

39

2066

/67

21,4

73,6

74

2066/67

88.3

2% 11.6

8%

2066

/67

1.14

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The recent signing of Power Trade Agreement (PTA) between the Government of Nepal and India and the conclusion of Power Development Agreement (PDA) for two mega hydropower projects is a highly encouraging sign that the energy and infrastructure sectors are finally receiving the much awaited injection of major investment. These developments can have a snowball effect and are bound to open up significant opportunities for engineering and environment consulting business.

As a leading national engineering company in the sectors of energy, hydropower and water resources; Hydro-Consult Engineering Limited (HCE) offers a broad range of planning and engineering consultancy solutions. The name, HCE, has earned a great deal of reputation and respect in the market and stands for experience, quality and international competence, as evidenced in the ongoing works in Kenya, Pakistan and Nepal. Being able to grasp the

Chairman’s Message

Uttar Kumar shrestha Chairman

opportunities in the upcoming mega projects can have a very positive impact on HCE’s profitability and its technical capabilities in the long run.

It is our collective responsibility to sustain the credibility of the company and preserve its hard earned position in the coming days. Our key focus will be to continue to work for the long term value for our shareholders and to meet the expectations of our clients, employees and regulators.

We are thankful to all shareholders and HCE team for their faith, support and confidence in the Company.

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Dear shareholders,

Your Board has the pleasure of presenting this Annual Report and the audited statements of accounts of the company for the year ended July 16, 2014.

Company PerformanceHCE has continued to provide international and national engineering consultancy in FY 2070/71 intelligently, paying particular attention to successful business results, rather than merely finishing the job.

Internationally, feasibility study of 260 MW Jamshill Turen More HP (previously Koragh HP) in Pakistan and the project management and construction supervision of 5 MW Gura SHP in Kenya continued in this fiscal year also.

In national scenario, HCE continued the services for Andhikhola Upgrading (9.4 MW); detail design of 42 MW Mistri Khola HP; and IPC verification of Upper Hewa Khola-A HP (14.9 MW) and Mai Khola HP (22 MW) in this fiscal year also. In addition, the consultancy services performed by HCE in the fiscal year2070/71are:

Financial Performance In the fiscal year 2070/71, the revenue from consultancy business was NPR 81.3 million. The net profit before tax was NPR 15.34 million. The shareholders’ fund and net worth of the company has increased by 33.02% to NPR 46.63 million from NPR 35.05 million last year. Total assets have increased by 22.64% and reached NPR 68.14. The current ratio of 2.83: 1 was maintained as on Ashad 31, 2071. The overall financial performance of the company is commendable.

Human ResourceHCE has a well-diversified team of professionals dedicated to provide reliable and quality services to its clients. HCE’s professionals, technicians and administrators have consistently outperformed and satisfied the clients of the company. HCE has recruited and maintained its human resource base with competent pay scale and retention schemes. Currently, 48 technical and 6 non-technical personnel are employed in HCE. As a part of capacity building and career development of the staff, HCE has been sponsoring training programs for technical as well as non-technical employees. FK Youth Exchange program with Multi Consult, Norway is also a part of this capacity building program.

l Construction supervision of Thapa Khola HP (13.6 MW)

l Construction supervision and technical management of Upper Mai HP (9.98 MW)

l Detail design and tender document preparation of Khani Khola HP (30 MW)

l Update feasibility, tender document preparation and detail design of Nyam Nyam SHP (6 MW)

l Feasibility review, tender document preparation and detail design of Middle Modi HP (15.1 MW)

l Project component optimization, tender document revision, tender evaluation and update of environmental and social safeguard documents of Kabeli-A HEP (37.6 MW)

ReportFROM THE BOARD OF HCE

l Revised Feasibility Study of Lower Manag Marshyangdi HEP (100 MW)

l Structural Detailing of Uileann hydro, Wyvis hydro and Corrour Hydro schemes in the United Kingdom

l Preparation of detailed project report of repair works of headworks, contract management and construction supervision of Khimti I HP (60 MW).

l Due Diligence Appraisal of Naugarh Gad SHP (8.5 MW)

l Due Diligence Appraisal of Jogmai Khola SHP (7.6 MW)

l Due Diligence Appraisal of Dordi Khola HP (27 MW)

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Risk, Challenges and Mitigation MeasuresThere are continued risks and challenges for HCE in the national market owing to insecurity of investment, bureaucratic hassles and unsure political situation of the country. This situation, apart from limited business opportunities, has contrived the exodus of the competent human resources to the developed countries, which has also affected HCE to an extent.

However, development of hydropower projects by independent power producers and the government is still going on despite this fragile investment scenario. In addition, HCE is also exploring alternative national and international hydro projects to mitigate the potential business risks and challenges.

board of DirectorsThe Board of Directors was reconstituted on 2070/7/29 in which Mr Pratik Man Singh Pradhan was nominated as the Chairman of the Board of Directors replacing Mr Ranjan Lohar and Mr Ratna Sambhav Shakya was appointed as the Director. Similarly Mr Balaram Pradhan was appointed as the Director replacing Mr Gokul Sharma on 2070/9/1 vide the Tenth Board of Directors Meeting. The Board of Directors was again reconstituted in the Fourteenth Board of Directors Meeting upon the nomination of Mr Uttar Kumar Shrestha as the Director replacing Mr Ratna Sambhav Shakya. Mr Uttar Kumar Shrestha was also appointed as the Chairman of the Board of Directors in this meeting. Mr Ratna Sambhav Shakya and Mr Muhan Maskey are the Alternative Directors as of now. The Board of Directors is constituted from the corporate representative of the shareholders namely Butwal Power Company (BPC) and PEEDA. In this structure, the Board consists of three representatives from BPC and one from PEEDA. Now, the Board is chaired by Mr Uttar Kumar Shrestha, who is also the CEO of BPC. As of now, the Board constitutes following members and the company is in process of appointing Independent Director.

Mr Uttar Kumar Shrestha ChairmanMr Pratik Man Singh Pradhan DirectorMr Radheshyam Shrestha DirectorMr Balaram Pradhan DirectorMr Ratna Sambhav Shakya Alt. DirectorMr Muhan Maskey Alt. DirectorMr Manohar Shrestha CEO

The Board of Directors constitutes the corporate representatives of the shareholders. The Directors possess broad range of skills, qualifications and experience. The Board meets regularly and all information in connection with items being discussed at a meeting of the board are provided to the Directors prior to the meeting. The Directors are responsible for providing strategic direction to the company, setting up corporate objectives, monitoring of operational and financial performance of the company’s activities and the company’s system of internal control. Mr Saroj Ghimire is the Company Secretary of HCE.

The Board has also constituted the Audit Committee and the Budget Committee as follows:

Audit CommitteeMr Radheshyam Shrestha Chairman Mr Ratna Sambhav Shakya Member Mr Muhan Maskey Member

budget CommitteeMr Ratna Sambhav Shakya Convenor Mr Muhan Maskey Member

Corporate GovernanceThe Company is aware of the fact that good corporate governance practices are fundamental to the success of the company and also characterized by a strong commitment and adoption of legal and ethical practices by an organization in its dealings with the stakeholders and to meet the objectives of the Company remaining within the ambit of laws, rules and regulations. In this reference, HCE thrives to be a good corporate citizen and has a strong notion of ethical business. It also considers corporate

governance as a central aspect of business in the modern market economy. Recognizing the importance of corporate governance, the clear division of the responsibilities of the Board and the Management has been made as the Board performs the supervisory role whereas the management executes the directions of the Board and the General Meetings.

In addition to this, for complying the corporate governance principles, the Board and the Management have ensured that there is sound administration and efficient use of resources; and also has the best mechanism of recruiting the employees. The Company has also ensured that laws and regulations have been regularly observed and have established good rapport with the client. Further, the Board has also constituted committees like Audit Committee and Budget committee as mentioned above to ensure that the finances have been adequately used and complied,

Relation with the ClientsHCE works with a defined code of conduct and ethics that applies to every member of our office. We believe in sustainable development and urge our clients to integrate economic, environmental and social considerations while making their decisions. We do our best to integrate stakeholders’ voices in our design work so that the development can create a win-win situation to the developer and local community and thus promoting sustainable harvest of natural resources. HCE’s clientele consists of BPC and its subsidiaries, financial institutions, government and semi-government entities, local and foreign developers, and international institutions.

statutory AuditM/S S.R. Pandey & Co., Chartered Accountants has been appointed as a statutory auditor for FY 2070/71. The auditor has issued unqualified report on financial statements of FY 2070/71 (FY 2013/14).

involvement in social and business associationHCE has been enlisted with Asian Development Bank. HCE has been partnering with Multiconsult, Norway in the FK Youth Exchange Program. HCE is a member of ACECOMS (Asian Institute of Technology (AIT), Thailand) and the Society of Consulting Architecture and Engineering Firms (SCAEF), Nepal. HCE is also planning to receive ISO certification in the coming fiscal year.

Health and safetyHCE has developed a cordial working environment for its employees at all levels. It has taken all the measures for the safety of its employees at office and at site. Special care has been taken and guidelines and norms for safety have been developed for the employees. There is a provision of accident insurance covering 24 hours a day, medical insurance and travel insurance for the employees. In the same way, fire and other general insurance policies have been taken for the safety of office premises and other assets.

Employees are provided with sick, paternity, maternity and personal leaves considering their requirement. HCE is also concerned about the financial implications to its clients and is initiating Professional Indemnity Insurance as well.

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Corporate social Responsibility and outreach ActivitiesThroughout the company’s journey, HCE has designed programs that have effectively contributed to the local socio-ecological system in the project areas. HCE values CSR activities and is committed to fulfill its duty as a good corporate citizen and a responsible member of the society. In this fiscal year, HCE supported institutions that are working for the betterment of orphans, disabled and street children.

In addition, as part of the corporate outreach activities, HCE participated in the Corporate and Media Futsal Tournament in 2014. HCE was the Runner-up and Mr Rakesh Sapkota of HCE was adjudged the Best Player of the tournament.

Future ProspectsHCE believes that the analysis stage of a development is the most crucial and its multi-disciplinary team has the expertise to provide viable solutions at the early stage. During design stage, HCE combines creative design with the practicalities of technology and an understanding of its potential application. Experience of design and engineering solutions enables HCE experts to create value for clients by realizing new opportunities, reducing costs and managing risks. Apart from large hydropower developers, the Independent developers are also gradually

showing concern over quality and seeking established consulting firms like HCE for project preparation and implementation stage. Moreover, the ongoing efforts of hydropower development in East Africa and SAARC regions are also creating market potential for HCE. Therefore, HCE has a growth potential in the long run.

Closing remarksWe are grateful to all the stakeholders who have contributed to the progress of HCE in this fiscal year. We express gratitude to the different government agencies, BPC and its sister concerns, PEEDA, internal and external auditors, our valued clients, bankers and individuals and institutions for their support of the company in the FY 2070/71.

We thank the members of the Board Committees, Management Team and Employees for their dedication and commitment for fulfilling their roles effectively for the betterment of HCE.

Thank you,

On behalf of the Board of Directors

_____________Uttar Kumar shresthaChairmanDate: December 18, 2014

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It gives me immense satisfaction to state that Hydro-Consult Engineering Limited (HCE) has completed sixth year of its successful journey. It is my pleasure to write a few words about the performance of HCE for the fiscal year 2070/2071.

I would like to thank our hard working and dedicated staff for their contribution in achieving the goals of the company. I am delighted that we are able to join hands with several new clienteles this year and continued to exceed their expectations. This, of course, would not have been possible without the meaningful contribution of our staff.

We have always believed that the key to providing efficient engineering solutions is to work hand in hand with our clients to know their requirements in a better way and produce results while adhering to the required standards of quality and cost. This has always been our motto and

we are committed evermore to use highly skilled manpower, up-to-date national and

international standards in the coming days to achieve our goals.

As in the previous years; focus was given on staff capacity enhancement through

innovative trainings, seminars and workshops. The FK International

Youth Exchange Program continued by exchanging two

young professional between Multiconsult, Norway and HCE. This program helps us to expose our professionals to explore diverse working environment and technologies.

CEO’s Perspective

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On the international front, we continued the project management and construction supervision of Gura hydropower project in Kenya and the feasibility study of 260 MW Jamshill Turen More Hydropower Project in Pakistan. Moreover, HCE will be providing its services for the feasibility study of 350 MW Turen More-Kari Hydropower Project also.

In Nepal, HCE completed its services for Nyadi HP, Kabeli-A HP and Lower Manang Marsyangdi HP. In addition, HCE continued its services for Andhi Khola Upgrading, Mistri Khola HP, Hewa Khola HP andSanima Mai HP. Further, HCE signed agreements with Khani Khola HP (30 MW), Middle Modi HP (15.1 MW), Nyam Nyam (6 MW), Khimti HP (60 MW), Thapa Khola HP (13.6MW) and Upper Mai HP (9.98MW). Besides, HCE has also been providing its services to the financial institutions in Nepal to carry out the Due-Diligence Appraisal and IPC verification of hydropower projects.

HCE has continued its consistent financial performances in this fiscal year also. In the FY 2070/71, the revenue from consultancy business is NPR 81.30 million compared to NPR 59.6 million in FY 2069/70. Similarly, the net profit before tax is NPR 15.34 million compared to NPR 9.3 million in FY 2069/70. Therefore, the overall financial performance of the company is commendable.

Nepal is embarking towards mega hydro projects through international financing that gives HCE

an opportunity to enhance its cliental base. HCE is taking steps to increase collaboration with national and international consulting firms to provide services for these projects. Experience of effective design and engineering solutions in Nepal gives HCE an edge in the national market. Moreover, the ongoing efforts of hydropower development in East Africa and SAARC regions; where HCE already has assignments, are also creating market potential for HCE in near future.

I would like to thank our valued stakeholders for their continuing support and faith. We are here today with the help and trust of project developers, financing institutions, government institutions and all stakeholders even in the most challenging of times. I am also grateful to the chairman and the board for their guidance and support.

Finally, I would once again like to congratulate all for their efforts in the company’s achievements and look forward to continued support and cooperation from all the stakeholders.

Manohar shresthaChief Executive Officer

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From left to right

Ashok joshiSr Officer-Admin/HR

bibek neupaneProject Manager

Manohar shrestha CEO

Ram bhakta KarkiSr Consultant

Diwash Lal Maskey Project Manager

TEAM MEMBERSProject Coordination

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soyuz GautamSr Structural Engineer

bharat Raj PandeyChief Engineer

basanta bagale Project Manager

Pranav AcharyaEnvironment Chief

bandhu DhakalProject Manager

* PC Member missing in Photo:saroj Lal shrestha, Project Manager Rabindra Ranjit, Sr Officer-Accountshyam Prasad bhusal, Project Manager

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Sustainable growth and perpetual existence of a corporate house is possible through properly guided, directed and controlled governance. HCE Board of Directors upholds good governance of the company. The HCE management believes in the spirit of the corporate governance; safeguarding the interest of all stakeholders and continual progress of the company. Corporate governance comprises the management of risk, safeguarding of assets, avoidance of uncertainty, ensuring compliance, preservation of the rights of the shareholders, management and the employees and enhancing company’s goodwill in the corporate sector.

The Company’s governance practices are also based on the following broad principles with the objective of adhering to the highest standard of governance through continuous evaluation and benchmarking:l The Board is constituted with well experienced

members having proven corporate leadership.l There is 100% representation on Board by Non-

Executive Directors for proper supervision on Executives and has appointed the Chief Executive Officer to carry the affairs of the company with competent officers.

l The strategies adopted and administration governance is transparent and follows adequate procedures.

l The Company practices high level of disclosures for dissemination of corporate, financial and operational information.

l The Company has formed Audit Committee and Budget Committee represented by the Non-executive directors.

l The Board has entrusted the Chief Executive Officer to run its affairs and the CEO is responsible to the Board.

l The Meeting of the Board of Directors is conducted on regular basis and the Directors actively take part in the discussion and resolution on the agendas presented.

l The Board is regularly informed about the progress of the projects and takes consent of the board in the matters where required.

Corporate Governance Report

l The Company has well defined corporate structure that establishes checks and balances and delegates decision making to appropriate levels in the organization to all its stakeholders.

l HCE has the provision of Internal Audit on quarterly basis. The internal audit function is outsourced to maintain independence and fair appraisal of company’s governance system.

l All the Operations are carried out based on the written procedures and manuals of the company

l For effective Financial Control; budget formulation, approval and evaluation are conducted on quarterly basis.

board of DirectorsHCE Board Members act in good faith in the best interest of the company and are well aware of their individual and collective responsibility towards the institutional shareholders. HCE Board of Directors consists of four members and two Alternate Directors. For the fiscal year 2070/71, the Board was reconstituted 3 times. Now, the Board is chaired by Mr Uttar Kumar Shrestha, the CEO of BPC. There are four representatives including one Alternative Director from BPC, two representatives from PEEDA including one Alternative Director. A total of 7 Board meetings were conducted during the fiscal year 2070/71(2013/14). The attendees of the meetings were:

sn name Position number of

meeting attended

1 Uttar Kumar Shrestha Chairman 12 Pratik Man Singh

PradhanDirector (Past Chairman) 5

3 Ranjan Lohar Past Chairman 14 Radheshyam Shrestha Director 7

5 Balaram Pradhan Director 3

6 Ratna Sambhav Shakya Alt. Director (former Director) 57 Gokul Prasad Sharma Former Director 18 Muhan Maskey Alt. Director (presented as Director) 3

9 Manohar Shrestha Chief Executive Officer 710 Saroj Krishna Ghimire Company Secretary 7

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the roles of the board of HCe are to:1. Ensure legal and internal control compliance2. Review, monitor and approve major financial and

corporate strategies3. Review, monitor and approve budgets and

financial results and approve policies and business strategies

4. Delegate appropriate authority to the management to conduct business activities effectively and efficiently

5. Ensure goal congruence between the shareholders and the management through good governance

6. Work for the benefit of the institutional shareholders and the company.

Fees and AllowancesHCE Board of Directors represents the institutional shareholders. HCE has not paid meeting allowances to its Board members. Instead, a transportation allowance is provided to facilitate the attendance of representative from PEEDA. Board members representing BPC are ex-officio representative holding senior management positions in BPC. Currently, the Traveling Allowance of NPR 1,000/- per meeting is provided to the representative of PEEDA.

internal AuditTo maintain the independence and objectivity of risk management; fair financial and accounting procedures and effective control and safeguard of assets, the internal audit of HCE was outsourced to M/S Kuber & Company. The internal audit was carried out on quarterly basis and reports were submitted to the Audit Committee. The HCE management has effectively implemented the suggestions received from the internal auditor and the decisions of the Audit Committee.

Functions of the Internal Auditor:1. To review and recommend on the procedures

and internal control system 2. To ensure that the laid down guidelines and

procedures are adequate to safeguard the company’s assets and mitigate the associated risk

3. To ensure that the risk management policies and procedures have been developed and implemented effectively

4. To review adherence to all the legal compliances and constructive obligations by the company.

external AuditM/s S. R. Pandey & Co audited the books of accounts of HCE for the fiscal year 2070/71 (2013/14). HCE has received the unqualified audit report for its financial statements.

Management and executionHCE has a blend of professionals to manage the business of the company. The HCE executive team is led by CEO, Mr Manohar Shrestha. The Board of HCE oversees the business operation and guides the management on strategic issues.

Code of Conducts and ethicsHCE has a set of code of conducts and ethics to be complied by all the Staff, Management, Board and the organization. HCE believes in good corporate citizenship and ethical values. HCE adheres to professional competence, professional behavior, confidentiality, objectivity and integrity in all its business activities.

shareholding PatternHCE has two institutional shareholders. The shareholding details are as follows:

Shareholder Number of Shares Held

Shareholding %

Butwal Power Company Ltd 94,308 80%

People, Energy and Environment Development Agency(PEEDA)

23,577 20%

Total 117,885 100%

transparency and DisclosuresHCE values the corporate governance principles and maintains transparency in its business operations and disclosures as required. The disclosures on related party transactions and significant accounting policies are made in the notes to accounts section of the financial report.

shareholders’ information

butwal Power Company (bPC)Butwal Power Company (BPC) stands today with more than 46 years of experience in the hydro power industry and has placed itself as one of the leaders in the energy sector. The core business areas of the

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company are generation and distribution of electricity. Through its subsidiary companies, BPC is engaged in development, operation and maintenance of hydro power plants; engineering consultancy of hydropower and infrastructure projects; and manufacturing and repair of hydro–mechanical equipment for power plants.

Pursuing the privatization process in 2003, the Government of Nepal handed over the majority ownership and management control of BPC to private investor on public–private partnership model. BPC is registered with the Securities Board of Nepal and listed in Nepal Stock Exchange Limited. Starting off with electrification plan of a small city in the Southern Hills of Nepal, BPC is the only enterprise which can look back to a four decade long history of sustained growth in the country and a track record of a pioneering multi-faceted capacity building initiatives in hydropower development. With its four new major projects, Andhi Khola Upgrading, Nyadi, Kabeli-A and Lower Manang Marsyangdi, BPC will have installed capacity of nearly 300 MW of generation facility in the near future.

BPC is committed to operational excellence and believes in good governance, corporate citizenship and creating value for stakeholders. Name: Butwal Power Company Limited Registration number: Pa.Li.No.3-049/50 Date incorporate: 29 December,1965(2022/09/14 BS) Date Converted into public limited Company: 17 February,1993(2049/09/06 BS) Registered/Corporate Office: Gangadevi Marga-313, BuddhaNagar, Kathmandu, Nepal Stock exchange listing: Nepal Stock Exchange (NEPSE),as BPCL

People, energy & environment Development Association (PeeDA)People, Energy & Environment Development Association (PEEDA) was established in 1998 through the joint effort of various

Pravash MoolLiving and working away from home for a year was a little unsettling at first but very exciting. While working at Multiconsult AS (Norway), I got a chance to experience their working culture and methods which have helped to take my career ahead. At Multiconsult AS, I had the opportunity to work on hydropower projects from Uganda and Norway that gave me a general overview of designing projects with international perspective. I would like to thank Hydro-Consult Engineering and FK-Norway for giving me this opportunity.

hydropower related organizations and United Mission to Nepal (UMN) for the enhancement of renewal energy sector in Nepal. PEEDA aims to mobilize local as well as external resources to harness the indigenous resources of the country thereby promoting poverty alleviation activities. It focuses mainly on institutional development, participation with stakeholders at grass root levels in development activity, research and lobbying for policy change. PEEDA’s team, with its gained experiences in the energy and development sectors, envisioned that economic development can be achieved through sustainable energy development activities, with particular emphasis of seeing this development reach the poor.

PEEDA has also been supporting institutions which have a goal of serving the needs of those developing the water resources of Nepal. It owns 20% shares of Hydro-Consult Engineering Ltd and 50.08% shares of Hydro Lab Pvt Ltd.

PEEDA has also conducted several training events related to management of the energy sector with the aim of building the capacity of people involved in the development sectors. It has also collaborated with other organizations in the research and development of Pico Hydro and has regularly been organizing workshops and seminars to promote such activities.

Name: People, Energy & Environment Development Association(PEEDA)Registered At: District Administration office, KathmanduRegistration number: 85/054/55Date incorporate: 17 August,1997(2054/05/01 BS)Registered At: Social Welfare Council(SWC)Registration number: 19445Date Incorporate: 20 March, 2006(2062/12/07 BS)Registered/Corporate Office: Devkota Sadak, Mid Baneshwor, Kathmandu, Nepal

Berit Bye WilhelmsenThrough the FK program with NORPLAN/Multiconsult and HCE, we make each other stronger by working together towards the same goals, sharing experiences and knowledge. Nepal is a beautiful country with powerful nature and friendly people. There is a huge potential and need for clean energy, and it is meaningful to work with hydropower here. I am grateful for this opportunity to get international experience. Field trips are interesting both cultural and in a professional aspect as the steep terrain, river sediments and discharge patterns of Himalayan rivers are special.

Views on FK Exchange Program

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Board MembersMR. PRATIK MAN SINgh PRADhANDirector

Mr Pradhan holds double Masters’ Degrees in Civil and Environmental Engineering from the University of Michigan (UoM), USA and Hydropower Planning and Development from the Norwegian University of Science and Technology (NTNU), Norway

Mr Pradhan is the Vice-President at BPC and leads the Business Development and Project function. Mr Pradhan is a hydropower development expert with over 20 years of experience. He has extensive knowledge and experience in the planning, development and implementation of the hydropower projects. Prior to joining BPC, Mr Pradhan was a researcher at the ‘Stream Restoration’ project at the Environment and Water Resource Engineering (EWRE) Program in the University of Michigan, USA.

His key experiences include working on environmental hydraulic issues at the existing hydropower projects with AECOM Environment, USA; leading the first hydraulic research centre ‘Hydro Lab’ in Nepal to solve the hydraulic related problems in the design of headworks in sediment loaded rivers; and extensive experience in the construction of dams, intake and tunnels for hydropower projects in Nepal through Himal Hydro and General Construction Limited.

MR UttAR KUMAR sHRestHAChairman

Mr Uttar Kumar Shrestha is responsible for overall operation and management of the company. Prior to joining BPC, he was the Managing Director of Nepal Electricity Authority (NEA).He served NEA for more than 20 years in different capacities. Mr Shrestha holds a sound knowledge on Hydropower Development, Project Financing,

negotiations with IPPs and extensive experience in negotiation with different bilateral and multilateral donor agencies, local financial institutions for financing and implementation of various projects. Mr Shrestha has attended various Executive Management Development training programs and has participated as an expert in various national and international forums related to hydropower development. He has conducted different studies in the sector of hydropower and he was the Member of Electricity Tariff Fixation Commission. He had also served various hydropower companies as a Board Member during his service period in NEA.

Mr Shrestha is a Certified Chartered Accountant from the institute of Chartered Accountants of India and holds MBA from Tribhuvan University, Nepal.

MR. RADHesHYAM sHRestHADirector

A Fellow Chartered Accountant (FCA) from the Institute of Chartered Accountants of India, Mr Shrestha holds a Master’s Degree in Commerce from Tribuvan University.

Mr Shrestha has served for 30 years in different positions in Nepal Rastra Bank (NRB), the Central Bank of

Nepal. He had held the position of Directors of Financial Management Department and Bank and FI Regulation Department at NRB. He had also worked as Professional Accountant in CSC & Company and R Bajracharya& Co, Chartered Accountant firms after the NRB service.

At present, he holds the position of Vice-President-Finance in BPC. Mr Shrestha is responsible for BPC’s financial operations, investor and stakeholder relations. He is also the Chairman of Audit Committee of Hydro-Consult Engineering Ltd.

bALARAM PRADHAnDirector

Mr Pradhan holds Post Graduate Diploma in Electric Power Systems from NTH, Norway and BSc Engineering in Electrical Engineering from IT, BHU, Varanasi, India. MrPradhan has over 42 years of professional experience in hydropower and project management in various engineering

companies. Presently, he is the Chairman of Hydro Lab (P) Limited. Prior to this, he was involved with Nepal Hydro & Electric Ltd (NHE) and Butwal Power Company (BPC) as Chief Executive Officer and Manager respectively.

Mr Pradhan is the Founder Executive Life Member of People Energy & Environment Development Association (PEEDA) that is a non-governmental organization with the main objective of improving the livelihoods of communities; particularly the poor, by collective utilization of renewable energy resources while ensuring due care to the environment. PEEDA executes various donor-funded projects like Pro Poor Hydropower Pilot Project, Bio-Fuels Project, Low Head Pico Hydro Promotion Project etc. MrPradhan is involved in PEEDA since its establishment for last seventeen years; of which, six (6) years were as President.

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MAnoHAR sHRestHAChief Executive Officer

education: MSc in Hydraulic Structure, Lumumba University,Moscow, Russia; MSc in Hydropower, Norwegian University of Science and Technology (NTNU), Norway.

experience: Over 25 years of experience in design, construction management/supervision and overall planning of hydropower projects and consulting business. Design experience in various projects from 1 MW to 250 MW projects in Nepal, Bhutan, India, Pakistan and Kenya. He has consulting job experience with international firms that include Statkraft Engineering, Norplan, Norconsult, Bernard, Hydro Tasmania, Mott MacDonald etc.

Mr Shrestha is the Founder Member and Treasurer of Nepal Hydropower Association (NHA); Former General Secretary and President of Nepal Norway Alumni Association; and Board Director of Hydro Lab Pvt Ltd and Hydro Fund for Hydro Investment.

bHARAt RAj PAnDeYChief Engineer

education: PhD Fellow, University of Newcastle, Upon Tyne UK; MSc in Hydraulic Engineering, IHE Delft, Technical University of Delft, Netherlands; BSc Eng, in Civil Engineering University of the East, Manila, Philippines. Chattered Engineer Reg. No.: 575823, Engineering Council of UK

experience: Over 24 years of professional experience in design and construction supervision of hydraulic structures, bridges, hills roads and tunnels. Key experience in structural analysis and design of various components of hydropower projects, structural and hydraulic design of bridges. Mr Pandey has managed construction projects and was involved in preparation of safety standard for hydropower projects. He has also served as the Course Coordinator of MSc in Bridge Engineering at the Institute of Engineering, Nepal.

sARoj LAL sHRestHA Senior Hydropower Engineer/Project Manager

education: MSc in Hydropower Engineering, Odessa State Academy of Civil Engineering and Architecture, Odessa, Ukraine.

experience: Over 19 Years of professional experience in engineering design, tender document preparation/procurement process, project management/ construction supervision in hydropower engineering consulting business. Experienced in 1 MW to 300 MW hydropower projects in Nepal and abroad for feasibility studies, detail design, due diligence, construction supervision as well as engineering management. Consulting job experience with various international organization such as Acres International (Canada), Canadian International Water and Energy Consultant (CIWEC), BPR inc (Canada), Norplan etc.

MR. RAtnA s. sHAKYAAlt Director

Mr Shakya holds Master’s Degree in Business Administration from Tribhuvan University. Mr Shakya brings 32 years of experiences in the field of Finance, Auditing and Corporate management. Mr Shakya is with BPC since 1994. During his tenure as Chief Finance Manager in BPC, he was successful in achieving National

Best Presented Accounts Award from ICAN in manufacturing sector for six consecutive years 2005-2010 for excellence in financial governance and transparency in financial reporting. This had been recognized from South Asian Federation of Accountants by awarding certificate of Merit for two consecutive years for Best Presented Accounts and Corporate Governance Disclosures Awards in 2009 and 2010. On his leadership as Head of Corporate, Mr Shakya was successful in resolving the conflict with Union having five years CBA Agreement with Employees Union maintaining sustainable industrial peace in BPC.

MUHAn MAsKeYAlt. Director

Mr Maskey holds Master’s Degree in Energy Systems and Management from the University of Flensburg, Germany and Bachelor’s Degree in Engineering from Mangalore University, India. Mr Maskey has been associated with People, Energy & Environment Development Association (PEEDA) for the last 6 years. Prior to working in

PEEDA, Mr. Maskey worked as the Technical, Monitoring and Evaluation Coordinator in Renewable Energy Project, Nepalgunj and as the Technical Officer in Rural Energy Development Program, Tehrathum. He started his professional career as an Engineer at Forum for Energy and Environment Development Pvt. Ltd. in 2000. His core areas of expertise are renewable energy technology & management, energy planning and community development through energy promotion.

Mr Maskey is a member of the Executive Committee of both Flensburg Association for Energy Management-Nepal (FAEM-Nepal) and Water and Energy Consultants’ Association Nepal (WECAN) and also an active member of Nepal Engineers’ Association (NEA).

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bAsAntA bAGALeProject Manager

education: MSc in Water Resource Engineering, IOE, TU, Nepal; BE in Civil Engineering, IOE, TU, Nepal; BSc Physics, TU, Nepal.

experience: Over 15 years of professional experience in feasibility studies, tender document preparation and detailed engineering design of headworks, waterways and powerhouse of hydropower projects. Mr Bagale has experience in construction supervision and due diligence studies of several hydropower projects as well. He has also taught courses in Waterpower Engineering as a Lecturer.

bAnDHU DHAKALProject Manager

education: MSc Water Science and Engineering, Surface Water Hydrology, UNESCO-IHE, The Netherlands; BE in Civil Engineering, IOE, TU, Nepal.

experience: Over 14 years of professional experience in construction management and supervision of hydropower projects from 5MW to 13.6 MW, Detailed engineering design of the hydropower projects from 5MW to 48 MW and Feasibility study of the projects up to 240 MW.

Experience in hydraulic design of different components of the hydropower projects, hydrological data collection and analysis, quality check of design, drawings and reports, budgeting, team mobilization, resources scheduling, progress monitoring, coordination with the Client and the Contractors.

sHYAM bHUsALProject Manager

education: MSc in Water Resources Engineering and Management from Asian Institute of Technology (AIT), Thailand; BE in Civil Engineering, IOE, TU, Nepal; MA Sociology from TU, Nepal.

experience: Over 14 years of professional experience in hydrological and GIS analysis, hydrologic and hydraulic modelling, design of various hydraulic structures, project management, contract management , preparation of ICB tender documents meeting the general requirements of WB, IFC and Nepal government, preparation of Risk Management Report, Plant and Design Build tender documents and NCB tender documents.

PRAnAV ACHARYAEnvironment Chief

education: MSc (Environmental Management), National University of Singapore, Singapore; MA(Sociology and Anthropology), TU, Nepal; BSc (General Forestry), Institute of Forestry, Nepal; BSc (Biology), TU, Nepal.

experience: An environment professional with over 17 years of experience in both natural and built environment management. Adept in conservation management as well as technical monitoring across various environmental and social media; his core abilities include conducting in depth research, analysis and review towards the provision of advisory services in the field of environmental management, green product and services, environmental and social safeguards and management frameworks, environmental due diligence and urban environmental management.

DiWAsH LAL MAsKeYProject Manager

education: MSc in Hydropower Development , NTNU, Norway; BE in Civil Engineering , IOE, TU, Nepal.

experience: Over 8 years of professional experience in project management, hydraulic and structural design of civil structures, quality and cost estimation of civil designs, feasibility study for detailed designs and construction works, project pre-feasibility study, preparation of proposals, flood stage and discharge computations for rivers, constructions drawings preparation.

bibeK neUPAneProject Manager

education: MSc in Hydropower Development, NTNU, Norway; BE in Civil Engineering, Kantipur Engineering College (KEC), TU, Nepal.

experience: Over 8 years of professional experience in study of hydropower projects in different phases from conceptual planning to construction level design. Design experience includes hydraulic design of headworks and waterway system, preparation of tender documents. Has been involved in due diligence appraisals and verification of Interim Payment Certificates (IPC) as consultancy to financial institutions during pre-construction and construction phases of various projects.


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AMRit PoUDeLSenior Environmental Officer

education: MSc in Environmental Sci-ence, Tribhuvan University, 2004; BSc in Environmental Science, 2002, Trib-huwan University.

experience: Over 8 years of profes-sional experience in carrying out envi-ronmental studies, Environmental Im-pact Assessment, Initial Environmental Examination, Environment Manage-ment Planning, Environmental Safe-guard and Environmental Evaluation. His core expertise includes impact as-sessment, environmental policies and legal frameworks and resource conser-vation issues.

bALRAM bHAttARAiSenior Environmental Officer

education: MSc in Environmental Management, School of Environmental Management and Sustainable Development (SchEMS), Pokhara University (PU), Nepal.

experience: Over 10 years of professional experience in environmental studies (EIA/ESIA/IEE) of various hydropower and transmission line projects that includes baseline data collection and analysis, impact identification and prediction and preparation of environmental mitigation & management programs, forest resource inventory and biomass calculation and implementation of self-monitoring system for pollution abatement in manufacturing industries. Mr Bhattarai has accomplished a number of environmental study projects upto 140 MW as an associated team leader/forest expert/environmental expert and as a study member. He also exhibits expertise on environmental and social safeguard and management frameworks, post construction environmental performance studies of development projects including transmission and distribution projects and environmental due diligence studies.

DiWAKAR KHADKASenior Geologist

education: MSc in Geology, Central Department of Geology, TU, Nepal.

experience: Over 10 years of professional experience 8in geological and geotechnical studies/assessments for several hydropower projects in their pre-feasibility, due-diligence, feasibility, detail design and construction supervision stages of development. His key expertise include preparing Geological Base Line Reports and Risk Management Plans; conducting numerical modeling to assess seepage and stability analysis of existing rock fill dams; and mineralogical analysis of suspended river sediments for hydropower projects .In addition, he also has experience in geological investigation for mining industry (limestone deposit for Cement Industry) and teaching experience in Environment Geology.

PiYUsH sAinjUSenior Electrical Engineer

education: BE in Electrical and Electronics Engineering , Kathmandu University (KU), Nepal.

Experience: Over 8 years of professional experience in planning/designing/reviewing electromechanical equipment, transmission line, distribution system (rural electrification); cost estimation of electrical systems; feasibility study for detailed designs and construction works; pre-feasibility study; due-diligence study; report and proposal preparation.

soYUz GAUtAMSenior Structural Engineer

education: MSc in Structural Engi-neering, IOE, TU, Nepal

experience: Over 7 years of profes-sional experience in hydraulics, struc-tural analysis and design, knowledge sharing regarding finite element soft-ware, construction planning, quantity estimation, rate analysis, detail design and report preparation.

KRisHnA neUPAneContract Manager/Quality Control Engineer

education: Master of Engineering in Water Engineering and Management, AIT, Thailand; Bachelor in Civil Engineering, IOE, TU, Nepal.

experience: Over 14 years of professional experience in project planning and management, hydraulic design of hydropower and irrigation projects, hydrological analysis, quantity and cost estimation of civil engineering structures, feasibility study and detailed designs, tender document preparation, contract management and construction supervision/quality control, disaster risk reduction, preparation of proposals, report preparation and project identification, planning, design and implementation of community infrastructure projects such as water supply, irrigation, green roads, landslide, gully control etc.

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RAM bHAKtA KARKiSenior Consultant

education: MSc in Electrical Engineering, Belorussian Polytechnic Institute, Minsk, USSR; BA in Economics and Political Science, TU, Nepal; Electrical Engineering Diploma, TU, Nepal.

experience: Over 36 years of professional experience in design, supervision on installation, testing and commissioning of electromechanical equipment of hydro power projects in Nepal, Pakistan and Kenya; operation and maintenance management of hydro power plants, witness on factory acceptance test (FAT) of plants and equipment of different hydropower projects at manufacturing workshops. Involved as an expert to provide advisory service on regional and national guidelines of hydropower operation and system optimization.

nARenDRA MAn PAtRAbAnsHSenior Consultant

education: MSc in Manufacturing Engineering and Management, The University of Birmingham, UK; BE in Mechanical Engineering, Victoria Jubilee Technical Institute, Bombay, India.

experience: Tender document preparation of civil works, electromechanical works and hydro mechanical works of hydropower projects based on FIDIC Conditions of Contract for Construction and Plant & Design Build. ICB tender document preparation of construction works. Preparation of General Specification for tender documents of hydropower projects. Quality control of report writing. Over 40 years of experience in Department of Roads, procurement and contract management of construction equipment and vehicles based on World Bank as well as Government procedure, fleet management, spare parts management and workshop management.

sARoj GHiMiRe Legal Advisor

education: : LLM UK/India; BA, LLB TU, Nepal.

experience: Mr Ghimire has been practicing commercial law for a decade and is an Advocate of Supreme Court of Nepal. He is also the Assistant Professor of Law at Tribhuvan University and is the visiting Faculty of Kathmandu University for commercial laws. As a consultant lawyer, Mr Ghimire has instrumental experience is the areas of hydropower and infrastructure laws, telecom and civil aviation laws, trade and finance laws, foreign investment and technology transfer laws, banking and insurance laws etc. He also has wide experience of reviewing legal documents including contracts, procurement and leasing, employment, financing and insurance matters. He is also an adviser, trainer and resource persons for several commercial issues including corporate governance, trade financing, employment law and collective bargaining, corporate legal compliance and drafting of legal documents for several organizations and multinational corporations.

AsHoK josHiSenior Officer, Admin/HR

education: MA Sociology, TU, Nepal

experience: Over 10 years of professional experience in administrative works which includes human resource management and outsourc-ing, travel management, insurance issues, health and safety and day to day office administration. Mr Joshi has also handled national and international communication and liaising along with event managements successfully.

RAbinDRARAnjitSenior Officer, Accounts/Finance

education: Master in Business Studies (MBS), TU, Nepal

experience: Over 14 years of professional experience in accounting and finance administration. Mr Ranjit has experience of overseeing accounting and financial matters of multiple sectors that includes Non Governmental Organizations, co-operatives, manufacturing companies and consultancy business.


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Highlights from income statement l HCE earned total revenue of NPR 82.60 million in FY 2070/71 (FY 2013/14). The revenue from

consultancy business was NPR 81.30 million whereas combined interest and other income was NPR 1.30 million.

l The Gross profit was NPR 32.77 million that was 40% of the total revenue.

l The profit before tax was NPR 15.34 million that was 19% of the revenue earned in FY 2070/71 (FY 2013/14).

l The Earning per share (EPS) was 98.29 which was increased by NPR 51.07 than previous FY.

l The Direct expense related to the consultancy business was NPR 49.47 million in the 2070/71 (FY 2013/14).There was increased of NPR 12.14 million in direct expense.

l The administrative expense was NPR 16.26 million. There was increased of NPR 3.06 million in direct expense

l NPR 3.74 million has been provisioned for income tax for the fiscal year 2070/71 (FY 2013/14).

Highlights from statement of financial position l The net worth of HCE has increased by 33% to NPR 46.63 million in 2070/71 (FY 2013/14) from NPR

35.06 million of 2069/70 (FY 2012/13).

l The book value Per Share (BVPS) has increased to NPR 395.93 in 2070/71 (FY 2013/14) from NPR 297.64 of FY 2069/70.

l The retained earnings increased by 49% to NPR 34.85 million in FY 2070/71 (FY 2013/14) from 23.28 million of FY 2069/70 (FY 2012/13).

Financial PerformanceOf FY 2070/71

VALUe ADDition to tHe nAtion

HCE CONTRIBUTED THE FOLLOWING AMOUNTS TO GOVERNMENT REVENUE

Value Addition FY 2070/71 FY 2069/70 FY 2068/69 FY 2067/68

Corporate Tax 3,740,243 2,933,346 2,338,133 2,946,277

Employee Tax 5,491,380 2,796,021 1,413,161 1,373,203

TDS 1,242,840 946,578 1,030,192 821,930

Value Added Tax (VAT) 6,080,649 3,501,274 6,751,748 4,811,454

total 16,555,112 10,177,219 11,533,234 9,952,864

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Project Overview of FY 2070/71International Projects

Jamshill Turen More Hydropower Project (260 MW)

HCE in consortium with AGES Consultants (Peshawar, Pakistan), Infra-D Consultants (Islamabad, Pakistan), Sheladia Associates Inc. (USA) and Norconsult (Norway) is performing the detailed feasibility study of Jamshill Turen More Hydropower Project (previous name Koragh-Paraith Hydropower Project).

HCE as a foreign partner of the Consortium has provided its services for conceptual design, hydrological analyses, locations of project components, hydraulic design and review of the interim reports.

type: Peaking Run-of-RiverClient: Pakhtunkhwa electricity Development organizationLocation: District Chitral, PakistanCapacity: 260 MWGross head: 120 mAnnual estimated energy: 1062.2GWhDam: 300 m (length) Concrete gravitysettling basin: surface, 4basinsHeadrace tunnel: 13620m length, 9.8 m diameterPowerhouse: surface 4 units of francis turbine

GURA Hydropower Project (5.0 MW) HCE is entrusted with the job for the overall project management of civil, hydro-mechanical, electrical, electro-mechanical components and construction supervision.

HCE has supported to prepare tender documents and procurement process for civil as well electromechanical works. Since the start of the project, HCE is providing its services on design review and approval, construction quality supervision, contractor claims review & recommendation to client.

Presently, the construction of weir, under sluice, intake, desander tank, aqueducts, box culverts and 7 km long headrace canal is in progress. The procurement/manufacturing of electro-mechanical equipment is also in progress.

type: Run-of-RiverClient: Kenya tea Development Agency KtDA / KtPC Kenya tea

Power CompanyLocation: nyeri County,KenyaCapacity: 5.0 MWGross head: 154.5 mAnnual estimated energy: 24.83GWhDiversion weir: 32 m (length) 2.5 m (height)settling basin: surface, 2 bays 63 m (length) 7.0 m (width)Headrace Canal: 7056 m length 2.5 m Width 1.4 m HeightPenstock pipe: 376 m (length) 1.4 m (dia)Powerhouse: surface 2 units of Francis turbinetransmission Line: 33 kV

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National Projects

Projects : Uileann Hydro schemeClient: HydroplanLocation: UKComponent: intake, thrust blockProjects : Wyvis Hydro schemeClient: HydroplanLocation: UKComponent: intake, thrust blockProjects : Corrour Hydro schemeClient: HydroplanLocation: UKComponent: Concrete slab

type: Run-of-RiverClient: butwal Power Company Location: Manang, Western Development RegionCapacity: 100 MWGross head: 325 mAnnual estimated energy: 547.38 GWh,Dam: 43 m (length) 18 m (height)settling basin: surface, 2 nos. 160 m (length) 15.5 m (width)Headrace tunnel: 4721m length 5.0m dia.Penstock pipe: 587 m (length) 3.3 m (dia)Powerhouse: surface 2 units of pelton turbine

Lower Manang Marsyangdi Hydroelectric Project(100 MW)

HCE is entrusted with the job of revising feasibility study using updated hydrological parameter of 40% exceedance flow.

Previously, HCE had also carried out the tender level design and prepared the tender documents for the project.

Structural Detailing of Uileann hydro, Wyvis Hydro and Corrour Hydro schemes

HCE worked in collaboration with Hydroplan, UK and supported in the structural design and detailing of various structural components such as intake, thrust blocks and switchroom concrete slab of Uileann hydro, Wyvis hydro and Corrour Hydro schemes.

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Kabeli-A Hydroelectric Project(37.6 MW)HCE is entrusted with the job of project component optimization, tender document revision and tender evaluation for Civil, Hydro-mechanical and Electro-mechanical works of the project.

The project component optimization works and tender document revision works were completed in February 2013.

HCE coordinated with Lahmeyer India (Clients’ independent reviewer) in the above mentioned works. Currently, HCE is providing necessary supports to the Client in bid evaluation of the project.

HCE also completed the updating of EIA, SIA and SAP as per the World Bank guidelines and hence supported the Client in the appraisal works.

type: Peaking Run-of-RiverClient: Kabeli energy LimitedLocation: Panchthar, eastern Development RegionCapacity: 37.6 MWGross head: 118.8 mAnnual estimated energy: 202.6 GWh, 6 hrs peaking during dry monthsbarrage: 60 m (length) 24 m (height)settling basin: Underground, 2 nos. 123 m (length) 12 m (width)Headrace tunnel: 4326m length 4.75m dia.Penstock pipe: 288 m (length) 3.55 m (dia)Powerhouse: surface 2 units of francis turbine

type: Run-of-RiverClient: Robust energy Private LimitedLocation: Myagdi, eastern Development RegionCapacity: 42 MWGross head: 302.8 mAnnual estimated energy: 226.82 GWh,Dam: 29.5 m (length) 22 m (height)settling basin: Underground, 2 nos. 85 m (length) 8.0 m (width)Headrace tunnel: 2285m length 4.0m dia.Penstock pipe: 1415 m (length) 2 m (dia)Powerhouse: surface 3 units of pelton turbine

Mistri Khola Hydroelectric Project (42 MW)

HCE in consortium with NORPLAN of Norway is entrusted with the job of detail design of civil structures and preparation of construction drawings.

Initially, HCE carried out the optimization of final layout and principal design of other components of the project.

HCE is now in the final stage of completing the detailed design and the preparation of construction drawings.

HCE has also carried out the task of updating the technical specifications for electromechanical works and evaluation of technical proposal for electromechanical works submitted by various bidders.

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Middle ModiHydropower Project (15.1 MW)

HCE is entrusted with the job of reviewing the updated feasibility study, preparation of Design Basis Memorandum (DBM) and tender document and detail engineering works of the project.

The review of updated feasibility study and Design Base Memorandum was completed in February 2014.

HCE is now working in tender document preparation and detail engineering works.

Khani Khola (Dolakha) Hydropower Project (30 MW)

HCE is assigned for detailed engineering design and tender document preparation for Khani Khola (Dolakha) Hydropower Project.

HCE has conducted the project layout selection, hydraulic design, structural design and construction drawing preparations. Similarly, preparation of tender documents for civil surface works, tunneling works, hydro-mechanical works and electro-mechanical works is also the part of the job.

HCE has completed inception phase including project layout selection, project component location and sizing. Now, the preparation of the tender documents is in its final stage.

type: Run-of-RiverClient: Middle Modi Hydropower LimitedLocation: Parbat and Kaski District, Western

Development RegionCapacity: 15.1 MWGross head: 75.34 mAnnual estimated energy: 81.942 GWhDiversion Weir: 33 m (length) 3.22 m (height)settling basin: 2 nos. 72 m (length) 12 m (width)Headrace tunnel: 2840 m length 3.6~4.4 m dia.Penstock pipe: 145.2 m(outlet portal-surge shaft) +135.3

m(surge shaft-bifurcation) 3.20 m (dia)Powerhouse: semi surface 2 units of Francis turbine

type: Run-of-RiverClient: sasha engineering Hydropower Private LimitedLocation: Marbu VDC, DolakhaCapacity: 30 MWGross head: 622 mAnnual estimated energy: 171.7 GWhDiversion weir: 13.5 m (length) boulder riprapsettling basin: surface, 3basins 82 m (length) 6.5 m (width, each basin)Headrace tunnel: 2673m lengthVertical shaft: 220 m (length) 2.5 m (dia) Penstock:Powerhouse: 1671 m (length) 1.2 m dia 2 units of pelton turbine

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HCE is entrusted with the job for the construction management and supervision and detailed design of the powerhouse and switchyard of the project.

HCE has entered in the contract for the construction management and supervision of the project in January 2014. Since then HCE is supervising and monitoring the construction works of all the components of the project.

HCE is also and also updating the construction level design of civil components as required during construction.

Thapa Khola Hydroelectric Project (13.6 MW)

HCE is entrusted with the job for the construction supervision, preparation of detailed project report, tender document, detail design of civil structures and preparation of construction drawings.

After the completion of detailed design, HCE has entered in the contract for the construction supervision of the project in March 2014. Since then HCE is supervising and monitoring the construction works of the civil components of the project. HCE is also and also updating the construction level design of civil components as required during construction.

type: Run-of-RiverClient: Mount Kailash energy Company private LimitedLocation: Mustang, Western Development RegionCapacity: 13.6 MWGross head: 388.9 mAnnual estimated energy: 69.7 GWhDiversion weir: 25 m (length) 2.5 m (height)settling basin: surface, 2 nos. 55 m (length) 6.0 m (width)Headrace Pipe 405 m length 1.35 m dia.Headrace tunnel: 1820 m length 2.0 m dia.Penstock pipe: 760 m (length) 1.25 m (dia)Powerhouse: surface 2 units of Pelton turbine

type: Run-of-RiverClient: Mai Valley Hydropower Private LimitedLocation: ilam, eastern Development RegionCapacity: 9.98 MWGross head: 385.80 mAnnual estimated energy: 57.78 GWhDiversion weir: 12 m (length) 5.65 m (height)settling basin: surface, 2 nos. 30 m (length) 6.4 m (width)Headrace Pipe 637 m length 1.50 m dia.Headrace tunnel: 2070.50 m length 2.5× 2.0 mPenstock pipe: 1570 m (length) 1.20 m (dia)Powerhouse: surface 2 units of Pelton turbine

Upper Mai Hydroelectric Project (9.98 MW)

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Khimti 1 Hydropower Plant (60 MW)

HCE is entrusted with the job for the preparation of detailed project report for the repair works of headworks area, tender document, detail design of civil structures and preparation of construction drawings, contract management and construction supervision of Khimti I Hydropower Plant.

HCE has prepared the Detailed Project Report (DPR) for repair of the damaged area in headworks after 15 years operation of the plant. The updated DPR was completed and submitted in May 2014.

Since then, HCE is carrying out the detailed design of the project with construction supervision.

type: Run-of-RiverClient: butwal Power Company LimitedLocation: Galyang, syangja, Western Development RegionCapacity: 9.4 MWGross head: 246 mAnnual estimated energy: 64.67 GWhDiversion weir: 52.5 m (length) 6.5 m (height)settling basin: surface, 2 nos. 54 m (length) 9.1 m (width)Headrace tunnel: 1000m lengthPenstock pipe: 250 m (length), vertical, 2 nos.1 m (dia)Powerhouse: Underground 3 units of pelton turbinetailrace: 1100 m length

type: Run-of-RiverClient: Himal Power LimitedLocation: Dolakha, eastern Development RegionCapacity: 60 MWGross head: 592 mDiversion weir: 45 m (length)Headrace tunnel: 7900 m length 2.0 m dia.Penstock pipe: 1000 m (length)Powerhouse: surface 5 units of Pelton turbine

Andhi Khola Hydropower Project (Upgrading)(9.4 MW)

Butwal Power Company is upgrading the capacity of Andhikhola Hydropower Project from 5.1 MW to 9.4 MW. HCE is conducting the job of structural design of project components, construction drawing preparation and preparation of as-built drawings.

The hydraulic and structural design of all the headworks components (intake, gravel trap and settling basin), surge tank, powerhouse (civil works) and geotechnical design of tailrace have been completed. Similarly, HCE is also involved in the co-ordination works for the retrofitting works of the powerhouse structure.

Currently, HCE is supporting the Client for the site based changes in the design and drawings.

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Mai Hydropower Project IPC Verification(22 MW) HCE is working as the technical consultant for the consortium of banks led by Laxmi Bank Limited for Mai Khola Hydropower Project which is being developed by Sanima Mai Hydropower Private Limited.

HCE’s scope of works for this project is to verify the Interim Payment certificates (IPC’s) issued by the engineer and to monitor the progress of works on behalf of the bank.

The scope of works includes verification of IPC’s for the entire contract packages; civil, hydromechanical, electromechanical and transmission line works.

Upper Hewa Khola-A Hydropower Project IPC Verification (14.9 MW)

HCE is working as the technical consultant for the consortium of banks led by Sanima Bank Limited for HewaKhoka-A Khola Hydropower Project. The developer of this project is Panchthar Power Company Private Limited.

HCE’s scope of works for this project is to verify the Interim Payment certificates (IPC’s) issued by the engineer and to monitor the progress of works on behalf of the bank.

The scope of works includes verification of IPC’s for the entire contract packages; civil, hydromechanical, electromechanical and transmission line works.

type: Run-of-RiverClient: Laxmi bank LimitedLocation: ilam, Western Development RegionCapacity: 22 MWGross head: 122 mAnnual estimated energy: 128.30GWh,Dam: 86 m (length) 11 m (height)settling basin: surface, 2 nos. 75 m (length) 19.5 m (width)Headrace tunnel: 2192m length 4.3m dia.Penstock pipe: 317 m (length) 2.6 m (dia)Powerhouse: surface 3 units of francis turbine

type: Run-of-RiverClient: sanima bank LimitedLocation: Panchthar, Western Development RegionCapacity: 14.9 MWGross head: 212.9 mAnnual estimated energy: 212.6 GWhDam: 31.5 m (length)settling basin: surface, 3 nos. 65 m (length) 6.5 m (width)Headrace tunnel: 3975m length3.5m dia.Penstock pipe: 270 m (length)Powerhouse: surface 2 units of francis turbine

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Jogmai Khola Small Hydroelectric Project(7.6 MW)

HCE was assigned to carry out the due diligence appraisal of Jogmai Khola Small Hydroelectric Project being developed by Sanvi Energy Private Limited

Based on the site visit, provided reports & data, HCE team carried out an independent review under which the project layout and project unit cost were reviewed.

Financial viability of the project was analyzed and recommendations were suggested for the modifications and further works to be carried out.

Nyam Nyam Khola Small Hydropower Project (6.0 MW)

HCE is entrusted with the job of preparing the updated feasibility study, tender document preparation, and detail engineering design of the project.

The updated feasibility study was completed in May 2014. HCE is now working in detail engineering design.

type: Run-of-RiverClient: nyam nyam Hydropower Company (P) LimitedLocation: Rasuwa, Central Development RegionCapacity: 6.0 MWGross head: 386.0 mAnnual estimated energy: 33.17 GWhDiversion Weir: 13.50 m (Length) 3.0 m (Height)settling basin: single, surface ,2 bays 13.82 m inlet transition 30 m Uniform Length 4 m (Width)Headrace tunnel: 2093 m Length inverted – D, 2.0m dia.Penstock pipe: 563 m (Length) 1.0 m (dia)Powerhouse: surface 2 units of Pelton turbine

type: Run-of-RiverClient: nMb bank LimitedLocation: illam, eastern Development RegionCapacity: 7.6 MWGross head: 222.5 mAnnual estimated energy: 45.13 GWhDiversion weir: Concrete Free Flow 20.0 m (length) 4.0 m (height)settling basin: surface, 2 nos. 48 m (length) 5.5 m (width)Headrace tunnel: 1507 m length 2.4 m dia.Penstock pipe: 1115 m (length) 1.3 m (dia)Powerhouse: surface 2 units of Francis turbines

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Dordi Khola Hydropower Project (27 MW)

HCE was assigned to carry out the due diligence appraisal of Dordi Khola Hydropower Project being developed by Himalayan Power Partner Limited.

In the study, HCE reviewed available reports, hydrological, geological and environmental parameters, design standards, quantity estimation and finally recommendations were suggested regarding the findings of the review study.

type: Run-of-RiverClient: Prime bank LimitedLocation: Lamjung, Western Development RegionCapacity: 27 MWGross head: 214.0 mAnnual estimated energy: 142.75 GWhDiversion weir: Concrete free flow 70 m (length)settling basin: surface, 2 nos. 60 m (length) 8.5 m (width)Headrace tunnel: 2662 m length 3.3 m dia.Penstock pipe: 699.76 m (length) 2.3 m (dia)Powerhouse: surface 3 units of Francis turbines

type: Run-of-RiverClient: nepal bank LimitedLocation: Darchula, Far Western Development RegionCapacity: 8.5 MWGross head: 138.0 mAnnual estimated energy: 51.93 GWhDiversion weir: Gravity weir 40.0 m (length) 4.0 m (height)settling basin: surface, 2 nos. 50.0 m (length) 7.5 m (width)Headrace Pipe: 3738 m length 2.1-2.0 m dia.Penstock pipe: 620 m (length) 1.9-1.34 m (dia)Powerhouse: surface 2 units of Francis turbines

Naugarh Gad Small Hydroelectric Project (8.5 MW) HCE was assigned to carry out the due diligence appraisal of Naugarh Gad Small Hydroelectric Project being developed by Api Power Company Private Limited.

HCE reviewed the feasibility study report and IEE reports made available by the Client. On the basis of those reports and site visit by the team of experts, conclusions were drawn on project components, layouts, adopted design parameters, social & environment issues, and geological investigations.

Installed capacity and the energy estimation of project were also reviewed. The project cost was updated in the context of the present scenario and technical and financial viability of the project was evaluated.

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Projects undertaken by Hydro-consult engineering limited in tHe Past

sn name of Projects and short Description Client Place of Work

1 Kabeli-A Hydroelectric Project (36.7 MW): Updated feasibility study and detail design;Social Assessment and Social Action Plan and IEE studies; Coordination of EIA and Cumulative Impact Assessment studies to augment project financing from the WB and IFC

Kabeli Energy Limited Panchthar and Taplejung districts, Eastern Nepal

2 Nyadi Hydropower Project (30 MW): Updated feasibility study, detail design, updated EIA study and Supplementary IEE study.

Nyadi Hydropower Limited Lamjung district, Western Nepal

3 Lower Manang Marsyangdi Hydroelectric Project (140 MW): Feasibility, detail design and EIA study

Butwal Power Company Limited

Manang district; Western Nepal

4 Bheri Babai Diversion Multipurpose Project, Component B: Hydropower (48 MW): Feasibility study review, detail design and tender document preparation

Department of Irrigation Surkhet district, Mid-western Nepal

5 TadiKhola Hydropower Project (5 MW): Detailed engineering design, tender document preparationand construction supervision works of the project.

Aadi Shakti Bidhut Bikas Company Pvt Ltd

Nuwakot district, Central Nepal

6 Marsyangdi III Hydroelectric Project (42 MW) : Feasibility and IEE Study Keton Hydropower Company PvtLtd

Lamjung and Tanahun districts, Western Nepal

7 Andhi Khola Upgrading Project (9.4 MW): Feasibility, detail design and IEE study


Syangja district; Western Nepal

8 Study of large mammals in Hetauda-Dhalkebar-Duhabi 400 kV Transmission Line Project: Specific study on large mammals (Leopard, Royal Bengal Tiger, Elephant and Wild Cats) in the project area to fulfill the requirement of World Bank for Project funding.

Nepal Electricity Authority 10 Terai districts of Central and Eastern Nepal

9 Study of Birds in Hetauda-Dhalkebar-Duhabi 400 kV Transmission Line Project: Specific study on Birds in the project area to fulfill the requirement of World Bank for Project funding.

Nepal Electricity Authority 10 Terai districts of Central and Eastern Nepal

10 Study on Regional Hydro Power Projects in Nepal: Study and identified potential projects ranging from 300 MW to 10,000 MW for future regional hydropower plants developments. The study has suggested possible options for grid connectivity of the proposed regional power plants with the neighbouring countries considering SAARC Electricity Grid

SAARC Energy Centre Nepal

11 Jhimruk Impact Study: Post operation study of environmental and social impacts in Jhimruk project area.


Pyuthan district; Mid-western Nepal

12 Bhim Khola Small Hydropower Project (9 MW):Feasibility and IEE study Butwal Power Company Limited

Baglung district; Western Nepal

13 Nyasim Khola Hydropower Project:Due diligence study that includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Sindhupalchok, Central Nepal

14 Sikta Irrigation Project: Review of detailed engineering design of the project, contract management, construction supervision and quality control and assurance of main canal from Ch 0+614km to Ch 15+000 km through one ICB and 3 NCB contracts.

Department of Irrigation Mid-western Nepal

15 Khudi Hydropower Project (4 MW): Review of feasibility study, detail design, construction supervision, preparation and implementation of environmental management programme and testing and commissioning of the Project.

Khudi Hydropower Limited Lamjung district; Western Nepal

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16 Rural Electrification and Expansion Project (REEP): Sustainable Rural Electrification, Environmental Impact Examination (EIE) Study and Environmental Performance Study Report


4 districts of Mid-Western and Western Nepal

17 Solu Khola (DudhKoshi) Hydroelectric Project (86 MW):Due Diligence Studythat includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Solukhumbhu district,Eastern Nepal

18 Baramchi Khola Hydroelectric Project (1 MW and targeted for 3 MW): Due Diligence Studythat includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Sindhupalchok district,Central Nepal

19 Tamakoshi 3 Hydroelectric Project (880 MW): Environmental study and bridging Study

SWECO Norway Dolakha district,Central Nepal

20 Madi Khola, Inku Khola and Bhudi Ganga Khola Small Hydropower Projects (12.25 MW, 20 MW, 6.2 MW) : Feasibility study and EIA study

Department of Electricity Development

Rolpa, Solukhumbu and Achham districts, Nepal

21 Balephi Hydropower Project (50 MW) : Pre – feasibility study Balephi Hydropower Company Limited

Sindhupalchok district,Central Nepal

22 Upper Mai Hydroelectric Project (9.98 MW) Eastern Nepal: Review of feasibility study, detail design (expected head – works) and tender document preparation

East Nepal Development Endeavour Pvt Ltd/ Mai Valley Hydropower Projects

Ilam district,Eastern Nepal

23 Lower Hongu Khola Small Hydropower Project (23.5 MW): Feasibility and EIA study


Solukhumbu district, Eastern Nepal

24 Rural Electrification Global Development Alliance of Nepal (REGDAN): Sustainable rural electrification and IEE Study

USAID, Kathmandu Western Nepal

25 Khare Khola Hydropower Project (14.7 MW) :Feasibility study and IEE study Department of Electricity Development /IRD

Dolakha district, Central Nepal

26 Field Workers Training on Electricity Distribution System Operation and maintenance : Development and delivered the training program to Rural Entities (REE) to provide technical skills to field workers of selected REEs

Winrock International Central Nepal

27 Khimti I Hydropower Project (60 MW): Socio-economic impact study on fishermen (Information report of the socio- economic impact study on fisherman)

Himal Power Limited Dolakha district, Central Nepal

28 BPCH Design Guidelines- September 2008: Guidelines were developed on considering the necessity to harness the knowledge and experience, to maintain uniformity and quality in design, and to ease up the day-to-day design process at BPCH. This guideline will cover different disciplines of engineering and relevant sciences required in our BPCH activities and will consist of a list of standard and practiced reference materials. It also included the precautions to a potential problem a novice may face, and the clues to get rid of such a problem.


Nepal

29 Health and Safety Standards in hydropower : Prepared safety standards for generation, transmission and distribution of hydropower projects for DoED


Central Nepal

30 Sunkoshi Hydropower Project (3.6 MW): Feasibility study, design review, survey of waterways and geological mapping of headworks

Sanima Hydropower Project Sindhupalchok district, Central Nepal

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31 Study for Promotion of Electricity distribution by Cooperatives: Study carried out on "Promotion of Electricity Distribution by Cooperatives" which was commissioned by Department of Electricity Development (DoED) to explore possibilities of franchising electricity distribution through user associations and community participation. The Study was carried out to assist National Planning Commission (NPC) so that the findings of the study and modality of the distribution cooperative(s) could be incorporated in the Tenth Plan of NPC

Ministry of Water Resources Countrywide Resources, Department of Electricity

32 Fish Monitoring in Khimti I Hydropower Project (60 MW), Kirne: Fish sampling and report preparation.

Himal Power Limited Dolakha and Ramechhap districts, Central Nepal

33 Melamchi Diversion Scheme (28 km Water Supply Tunnel): Assisted in the final design and preparation of the tender document as a sub-consult to NORPLAN AS. Worked out social uplift program such as family health, sanitation, nutrition, family planning and income generation activities for women through non- formal education programs with low key input to raise awareness and the living standard of villagers. Designed head works.

Norplan AS Sindhupalchok district,Central Nepal

Access Road (24 Km) to the intake and tunnel adits of Melamchi Diversion Scheme: Detailed survey and design of spoil- tips

Melamchi Water Supply Development Board

Central Nepal

34 TshoRolpa GLOF Risk Reduction Project: Undertook an evaluation of TshoRolpa, an unstable glacial lake located at 4500 m elevation. Prepared a detailed project proposal and then undertook a design -build contract to lower the lake level 3 m.

Department of Hydrology and Meteorology/Netherlands Development Assistance (NEDA)


TshoRolpa GLOF Early Warning System Installation: Design and installation of Syphon drainage system.

BC Hydro, Canada Dolakha district, Central Nepal

35 TrishuliKhola Small Hydro Project (4 MW): Prepared feasibility study for a 4 MW hydropower project, including a detailed cost estimate.

Annapurna Power Pvt Ltd Nuwakot district, Central Nepal

Nyadi Hydropower Project (30 MW): Prepared a feasibility study for a 30 MW hydropower project, including a detailed cost estimate.

Lamjung Electricity Development Company Ltd

Lamjung district, Western Nepal

36 Access Road (5 km) to the Nyadi Hydropower Project (30 MW): Survey and design of about 5 km long access road to the powerhouse area of the project at feasibility stage

Lamjung Electricity Development Company Ltd

Lamjung district, Central Nepal

Glacier Lake Outburst Flood (GLOF) Study of the Tama Koshi basin: Undertook an evaluation of TshoRolpa, an unstable glacial lake located at 4500 m elevation. Carried out detailed flood routing in the downstream valley for about 120 km reach.

Department of Hydrology and Meteorology

Central Nepal

37 Khimti I Hydropower Project (60 MW): Provided detailed civil engineering design under sub-contract for the Khimti I Project. The project involves run-of-the-river headworks, 10 km of tunnel, an underground powerhouse and surface and access infrastructure.

Statkraft Engineering Dolakha district, Central Nepal

38 Preparation of Civil Works Guidelines for Micro-hydropower in Nepal Intermediate Technology Development Group (ITDG)

39 Jhimruk Hydropower Plant (12MW): Undertook design and construction supervision of additional river training works for the powerhouse location and at upstream and downstream of the Jhimruk dam structure. Liaised with the power plant owner and local communities to design and implement a mutually acceptable solution.


Pyuthan district,Mid- Western Nepal

40 Khimti I Hydropower Project (60MW): In association with the Norwegian University of Science and Technology, undertook the physical model study for the Khimti I Hydropower Project The study included tests of the proposed headworks design on physical models of 1:40 and 1:15 scale.

Statkraft Engineering Dolakha district, Central Nepal

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41 Andhi Khola Hydropower Project (5.1MW): Detailed design of flashboards to enhance the peak generation capacity of the AndhiKhola Hydropower Project.


Syangja district, Western Nepal

42 Khimti I Supplementary Environmental Assessment: Collaborated with Norconsult AS for the detailed study of the fishery, low flows and water use from the Khimti Khola, as part of an investigation to determine appropriate downstream river-related mitigation measures for the Khimti I Hydropower Project.

International Finance Corporation (IFC)


43 Khimti II Hydropower Project (26 MW): Undertook topographic survey and collection of field data on hydrology, environment, sediments and geology as part of investigations for the possible implementation Khimti II Hydropower Project. The preliminary study was conducted in association with Statkraft Engineering AS.

Himal Power Limited Dolakha district, Central Nepal

44 Nayapul-Kirne Road Project (22 km): Design and project management for construction of a road to the site of the Khimti I HydropowerProject.

Electricity Development Centre of Nepal

Central Nepal

45 Andhi Khola Headrace Irrigation Project: Undertook feasibility study, detailed design and construction advice for this irrigation project.

United Mission to Nepal Syangja district, Western Nepal

46 Khimti I Hydropower Project Feasibility Study: Undertook detailed feasibility study in conjunction with Norpower AS. Study was completed April 1993. The study was used as a basis to commence funding of the project from international development banks.

Government of Nepal Dolakha district, Central Nepal

47 Kali Gandaki `A’ Hydropower Project: Undertook specific investigations of materials, concrete quality, and HV transmission line alignment and design for Norpower.

Norwegian Power Consultants(Norpower AS)


48 Tinau Hydropower Project - Electro-mechanical rehabilitation and Upgrading: Prepared feasibility reports on rehabilitation of existing equipment, and possible upgrading of scheme capacity. Prepared headworks and desanding basin modifications.

Nepal Electricity Authority Rupandehi district, Western Nepal

49 Micro-Hydropower Inventory Studies: Undertook district-wide review of micro-hydro potential and reconnaissance level design for 10 most promising sites in each of three districts.

Canadian International Water and Energy Consultants

Eastern& Western Nepal

50 Jhimruk Hydropower Project (12 MW): Undertook design, preparation of tender documents, project management and construction supervision of all works for the project. This included a 2 km tunnel and underground penstock, physical model of headworks, and extensive river training works.


Pyuthan district, Western Nepal

51 Andhi Khola Hydropower Project (5.1 MW): Undertook design and construction supervision of this project. This included headworks tunnel and underground powerhouse, and surface and access infrastructure.



52 Tinau Hydropower Project (1 MW): Undertook the design of dam and intake rehabilitation works as well as supervision of construction for the project.

Nepal Electricity Authority Rupandehi district, Western Nepal

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AUDITOR’S REPORT

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AUDITED FINANCIAL STATEMENTS

bALAnCe SHEET As on Ashad End 2071 (July 16, 2014)

Particulars sch. F.Y 2070/71 nPR F.Y 2069/70 nPR l.equity and Liabilities 1 shareholder's Fund

Share capital 1 11,778,500 11,778,500 Reserve and Surplus 2 34,856,290 23,279,362 total shareholder's Fund 46,634,790 35,057,862

2 other Funds Advance Share Capital - -

3 Current Liabilities and Provisions Creditors and Accounts Payable 3 8,083,233 3,629,593 Advance and Deposit received 4 6,694,193 6,539,567 Provision for Bonus 1,533,968 849,254 Provision for Tax 3,740,242 8,185,677 Other Provisions 5 1,452,878 1,295,647 Total Current Liabilities and Provisions 21,504,514 20,499,738 totAL 68,139,304 55,557,600

ii. Assets 1 non-Current Assets 1.1 Property, Plant & Equipments 6

Gross Block 16,078,545 16,262,266 Less: Depreciation reserve (10,134,364) (8,821,336) Net Block 5,944,181 7,440,930

1.2 Intangible Assets 6 Gross Block 2,234,631 1,988,131 Less: Depreciation reserve (1,193,913) (881,638) Net Block 1,040,718 1,106,493

4 Current Assets: Debtors and Accounts Receivable 7 28,784,991 30,528,035 Cash in hand and at Bank 8 19,814,465 1,879,297 Current work in progress 9 1,157,921 2,211,940 Advances, Deposit & receivables 10 11,062,231 12,033,598 Total Current Assets 60,819,608 46,652,870 Deferred tax Assets/(Liabilities) 334,797 357,307 totAL 68,139,304 55,557,600

Schedule 1-10 and Schedule 15 form an integral part of this Blance Sheet.

Date: 2071/09/03 Place: Kathmandu, Nepal

Rabindra RanjitSr. Account Officer

Manohar shrestha Chief Executive Officer

Uttar Kumar shresthaChairman

balaram PradhanDirector

Radheshyam shrestha Director

As per our report of even dateFor S.R. Pandey & Co.Chartered Accountants

Pratik Man singh Pradhan Director

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Particulars sch. F.Y 2070/71 nPR F.Y 2069/70 nPR

oPeRAtinG inCoMe

Consultancy Services 11 81,295,870 58,307,843

Other Operating Income 14 948,218 1,277,902

Foreign Currency Exchange Gain -

total operating income 82,244,088 59,585,745

oPeRAtinG eXPense

Direct Cost 12 49,468,341 37,325,803

total operating expense 49,468,341 37,325,803

Gross operating Profit 32,775,747 22,259,942

Administrative and other expenses

Administrative Expenses 13 11,959,043 9,539,673

Depreciation & assets written off 2,083,889 2,674,115

Bad Debt Written Off 1,780,022 -

Foreign Currency Exchange loss 441,124 981,823

total Administrative and other expenses 16,264,078 13,195,611

non-oPeRAtinG inCoMe:

Interest Income 14 284,575 145,239

Miscellaneous Income 14 77,404 132,228

total non-operating income 361,979 277,467

PRoFit beFoRe bonUs AnD tAX 16,873,648 9,341,798

Provision for Employee Bonus 1,533,968 849,254

PRoFit beFoRe tAX 15,339,680 8,492,544

Provision for Corporate Tax (3,740,242) (2,988,224)

Deferred Tax Income/(Expenses) (22,510) 57,774

net Profit for the Year 11,576,928 5,562,094

PRoFit & Loss APPRoPRiAtion ACCoUntLast Year’s Balance 23,279,362 17,717,268

Profit for this fiscal year 11,576,928 5,562,094

total 34,856,290 23,279,362

Less: Proposed Dividend

Prior Year Adjustment

balance transferred to balance sheet 34,856,290 23,279,362

Schedule 11-14 form an integral part of this Income Statement.

inCoMe STATEMENT For the Ashad End 2071 (July 16, 2014)consultancy Services









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STATEMENT OF CAsHFLoW For the Ashad End 2071 (July 16, 2014)

sno. Particulars F.Y 2070/71 nPR F.Y 2069/70 nPR

A. Cash Flow from operating Activities

Profit before tax 8,262,938 8,492,544

Add:non Cash & non operating expenses

Depreciation 2,083,889 2,674,115

Bonus Provision 1,533,968 849,254

Bad Debts Written Off 1,780,022 -

Other Provisions and non cash expenses - (79,857)

Less:

Interest & other Non Operating Income (284,575) (145,239)

Bonus paid (849,254) (1,012,736)

Non cash Income(Provison Reversed) (9,346) (65,186)

Cash Flow before Working Capital adjustments 12,517,642 10,712,895

Decrease (Increase) in Current Assets 3,790,242 (2,653,519)

Increase (Decrease) in Current Liabilities 1,863,375 (4,643,731)

operating Cash flow before tax adjustment 18,171,959 3,415,645

Less: tax Paid - (2,990,098)

net Cash Flow from operating Activities 18,171,959 425,547

b Cash Flow from investing Activities

Fixed Assets Sales( purchased) (521,366) (1,762,353)

Interest Income 284,575 145,239

net Cash Flow from investing Activities (236,791) (1,617,114)

C Cash Flow from Financing Activities

Issue of Share Capital - 355,844

net Cash Flow from Financing Activities - 355,844

D net Change in Cash & Cash equivalent (A+b+C) 17,935,168 (835,723)

e Cash and bank balance at the beginning of the Year 1,879,297 2,715,020

F Cash and bank balance at the end of the Year 19,814,465 1,879,297









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Particulars share Capital Retained earnings total

Balance as on Ashad End 2070 11,778,500 23,279,362 35,057,862

Additional Capital Injection in FY 2070/71 -

Proposed Dividend for FY 2070/71 - - -

Profit for the year (FY 2070/71) - 11,576,928 11,576,928

Prior Year Adjustment - - -

balance as on Ashad end 2071 11,778,500 34,856,290 46,634,790

STATEMENT OF CHAnGes in eQUitYAs on Ashad End 2071 (July 16, 2014)

sHARe CAPitAL As on Ashad End 2071 (July 16, 2014)

ReseRVe AnD sURPLUs As on Ashad End 2071 (July 16, 2014)

Particulars F.Y 2070/71 nPR F.Y 2069/70nPR

Authorised share Capital

(5,00,000 ordinary shares of Rs. 100 each) 50,000,000 50,000,000

issued and called up Capital


Paid up share Capital


total 11,778,500 11,778,500

Schedule 2

Schedule 1

Particulars F.Y 2070/71 nPR F.Y 2069/70 nPR

Retained Earnings

This year 11,576,928 5,562,094

Last year 23,279,362 17,717,268

total 34,856,290 23,279,362

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CReDitoRs AnD ACCoUnts PAYAbLeAs on Ashad End 2071 (July 16, 2014)

ADVAnCe & DePosit ReCeiVeDAs on Ashad End 2071 (July 16, 2014)


Retention payable 144,750 -

TDS and Remuneration Tax Payables 3,269,360 584,146

Salary Payable 1,643,063 859,062

Provident Fund Deduction 852 15,136

Citizen Investment Trust Deduction - 567,457

VAT Payable 658,203 135,886

Medical Insurance Claim payable 8,207 -

Other Liabilities to Employees 950,052 1,037,871

Audit Fee Payable 140,000 125,125

Other Payables 1,268,746 304,910

total 8,083,233 3,629,593

Schedule 3

Particulars F.Y 2070/71 nPR F.Y 2069/70 nPR Reliance Hydropower Pvt Ltd - 600,000 Himalayan Water Research & Energy(HWREDC) - 490,000 ERMC-BPC-MASINA-DE JV 300,000 300,000 Support Loan Multiconsult As - - Sanima Mai Hydropower Ltd 336,320 336,320 Liberty Energy Hydropower Pvt. Ltd - 318,800 Advance received from Gura SHP-KTDA 6,057,873 4,494,447 total 6,694,193 6,539,567

Schedule 4

Particulars F.Y 2070/71 nPR F.Y 2069/70 nPR Provision for Leave Earned 1,189,318 1,126,140 Provision for Gratuity 247,150 169,507 Provision for Expenses 16,410 - Provision for Bad Debts - - total 1,452,878 1,295,647

PRoVisionsAs on Ashad End 2071 (July 16, 2014) Schedule 5

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DebtoRs AnD ACCoUnts ReCeiVAbLes As on Ashad End 2071 (July 16, 2014)

CAsH in HAnD AnD At bAnKs As on Ashad End 2071 (July 16, 2014)


Butwal Power Company Ltd. 2,514,659 5,096,849

Nyadi Hydropower Ltd. 382,367 2,313,580

Kabeli Energy Ltd. 2,206,852 8,572,482

BPC-ERMC JV 352,992 352,992

Adisakti Bidyut Bikash Company -

Mount Kailash Energy Pvt. Ltd. 3,742,287 43,750

Environment & Social Studies Dep. (NEA) - 682,198

Multi Consult As -

Lamjung electricity & Development 1,115,000 -

Himalayan Power Partner 2,260 2,260

NMB Bank(Lohore Khola HP) - 474,500

Panchthar Power Company 6,956 1,201

Gura Hydropower- KTDA 12,253,162 12,068,264

Dovan Hydroopower Pvt. Ltd. - -

Nyam Nyam Hydro Power Co. Pvt. Ltd 1,381,417 -

Sasha Engineering Hydropower Ltd. 2,512,103 -

Mai Valley Hydropower Ltd. 1,353,080 -

Sanvi Energy Pvt. Ltd. 190,440 -

Khudi Hydropower Ltd. 419,960 919,960

Multi Consult As 77,156 -

Ages Consultant 274,300 -

total 28,784,991 30,528,035

Schedule 7


Cash in Hand 1,978 1,717

Standard Chartered Bank Nepal Ltd. 83,604 50,674

Prepaid Card - 105,170

Himalayan Bank Ltd.(Bidur Branch) - 2,587

Himalayan Bank Ltd.(New Baneswor Branch) 16,968,361 1,719,149

Himalayan Bank USD A/c(02702639940038)) 2,712,645 -

Machhapuchhre Bank Jomsom Branch 47,877 -

total 19,814,465 1,879,297

Schedule 8

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Business Advance to Staff 1,174,648 2,757,173

Telephone Deposit 44,000 43,000

Short term Deposit 13,500 14,500

Bank Guarantee Margin 1,460,250 -

Interest Receivable 150,852 -

Prepaid Expenses 77,892 133,585

Miscellaneous Deposit 9,500 9,000

Salary Advance - -

Advance Income Tax 6,739,208 9,045,669

Advance to others - 191

Durga Prasad Ghimire 4,572 30,480

Lunish Yakami 744 -

Diwakar Khadka 766 -

Saroj Lal Shrestha 752,624 -

Barun Suwal 170,875 -

Krishna Neupane 335,708 -

Staff receivable (insurance) 127,092

total 11,062,231 12,033,598

ADVAnCe & DePosit PAiD As on Ashad End 2071 (July 16, 2014)

inCoMe For the Ashad End 2071 (July 16, 2014)

DiReCt Cost For the Ashad End 2071 (July 16, 2014)

Schedule 10


Consultancy Services 81,295,870 58,307,843

total 81,295,870 58,307,843

Schedule-11

Schedule-12


Staff Cost (Sub Sch-12.1) 38,017,760 29,505,744

Engineering Consultancy (Sub Sch-12.2) 8,473,892 5,295,922

Field Expenses (Sub Sch-12.3) 2,361,138 1,966,349

Vehicle Operation (Sub Sch-12.4) 615,551 557,787

total 49,468,341 37,325,802

CURRent WoRK in PRoGRess (WiP) As on Ashad End 2071 (July 16, 2014)

Schedule 9


Nyadi Hydropower Project -

Tadi Khola HP - 1,377,877

Detail design of Kabeli - A HEP - -

UK HEP 143,173 -

Detail design of Thapa Khola - 89,662

Koragh Paraith Hydropower 1,014,748 744,401

AHP Upgrading - -

total 1,157,921 2,211,940

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stAFF Cost For the Ashad End 2071 (July 16, 2014)

enGineeRinG AnD ConsULtAnCY eXPenses For the Ashad End 2071 (July 16, 2014)

FieLD eXPenses For the Ashad End 2071 (July 16, 2014)

Sub Schedule-12.1


Salary 11,121,171 11,145,812

Allowance 21,053,148 11,853,904

Provident Fund 531,708 451,066

Leave Expenses 1,209,593 1,371,454

Daily Wage 192,556 25,260

Overtime 12,327 86,106

Gratuity 207,827 318,645

Insurance 456,560 404,508

Dashain Expenses 860,319 1,010,617

Performance Allowance 2,372,551 2,546,530

Minimum Guaranteed Incentive 291,843

total 38,017,760 29,505,745


Engineering & Design 1,054,020 308,392

Management Contract - 340,935

Consultancy Expenses 6,518,969 3,987,756

Survey Expenses 658,675 658,840

Other Expenses 242,228 -

total 8,473,892 5,295,922

Sub Schedule-12.2


Travel and Daily Allowance 858,740 1,051,360

Field Materials 61,756 2,990

Transport & Transportation Taxes 991,401 498,532

Work Permit Expenses 449,241 413,467

total 2,361,138 1,966,349

Sub Schedule-12.3


Fuel & Lubricants 424,910 372,593

Insurance Premium (Vehicles) 89,974 100,024

Taxes & Other 45,667 55,170

Driver Cost 25,000 -

Regular Servicing & Maintenance 30,000 30,000

total 615,551 557,787

VeHiCLe oPeRAtion For the Ashad End 2071 (July 16, 2014)

Sub Schedule-12.4

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ADMinistRAtiVe AnD otHeR oVeRHeAD For the Ashad End 2070 (July 15, 2013)


A. Administrative overhead Rent 2,386,140 2,592,331

Subsistence Pay 897,395 -

Electricity / Water 261,844 219,782

Housekeeping 74,224 57,440

Office Supplies 255,984 169,112

Repair & Maintenance 165,433 183,445

Computer Expenses 288,943 254,698

Photocopy and Binding 139,638 177,458

Printing Expenses 268,355 209,884

Stationery Expenses 107,405 157,664

Communication Related Expenses including Postage 523,206 481,789

Bank Commission & Charges 54,331 23,913

Adertisement & Publicity 178,070 67,452

Books, Newspaper & magazines 25,655 55,716

Membership Fee & Renewals 41,300 17,203

Transportation & Fares 156,913 203,108

Gift & Donations 36,400 31,000

Employee Motivation Expenses 365,973 323,040

Guest Entertainment 95,571 66,327

Medical Expenses 23,297 21,404

Photo & Audio/Video Expenses 240 5,460

Working Dresses 73,650 26,125

Meeting Expenses 27,047 1,650

Fuel and Lubricants 378,922 363,095

Generator Repair and Maintenance 122,025 113,924

Training & Seminars 455,662 161,835

total 7,403,623 5,984,855 b. other overhead

Audit Fee and Expenses 141,632 125,125

Annual General Meeting Expenses 73,816 71,292

International Travel 1,866,645 1,886,052

Vehicle Rental expenses 603,638 -

Tender Bidding Expenses 11,511 21,000

Business Promotion 192,298 81,397

Audit expenses 13,125 14,970

Board Meeting Expenses 9,705 11,206

Legal Expenses 21,795 -

Miscellaneous Expenses 7,754 19,005

Insurance Premium (Office Premises & Other Assets) 40,953 41,909

Assets Written off 165,751 -

Support Staff Expenses 1,406,797 1,282,863

total 4,555,420 3,554,819 total (A+b) 11,959,043 9,539,674

Schedule-13

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Interest 284,575.00 145,239

Other Income 776,577 709,890

Other Income (Provision reversed) 9,346 62,344

Grant Income 162,295 505,668

Miscellaneous Income 77,404 132,228

total 1,310,197 1,555,369

inteRest & otHeR inCoMeFor the Ashad End 2070 (July 15, 2013)

Schedule-14

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Schedule-15

Hydro-Consult Engineering LtdsiGniFiCAnt ACCoUntinG PoLiCies

A) General information:Hydro-Consult Engineering Ltd. (HCE) was named Hydro-Consult Private Ltd prior to conversion into public limited company. Hydro-consult was established in 24 March 1998 and was owned by people energy and environment development association (PEEDA). Butwal Power Company Limited (BPC) acquired 80% share of the company on 16 July 2009, and remaining 20% is owned by PEEDA. BPC transferred engineering consultancy business, fixed assets, goodwill of its Engineering Department (BPC hydro consult) to HCE with objective to run the engineering consultancy business as separate entity. HCE has inherited 25 years of professional experience from the engineering department of BPC. The company acquired public limited status on 18th September 2012 and took its new identity of Hydro-Consult Engineering Ltd. (HCE). The accompanied financial statements have been approved for publication by the Board of Directors of the HCE in its meeting held on December 18, 2014 (Poush 03, 2071). The Board of Directors acknowledges the responsibility of preparation of financial statements.

significant Accounting Policies:The principal accounting policies applied in the preparation of these financial statements are set out below:

1. Accounting Convention:Financial Statements are prepared under historical cost convention on an accrual concept and are in accordance with Nepal Accounting Standards which requires the use of certain critical accounting estimates. It also requires management to exercise judgment in process of applying the Company’s accounting policies.

2. Going Concern AssumptionFinancial Statements are prepared under going concern assumption. The management has no

intention of closing down the company in the near future and the total assets of the company and its net worth supports such assumption.

3. Fixed Assets and DepreciationAll fixed assets are stated at cost less accumulated depreciation. All direct cost relating to the acquisition and installation of fixed assets are capitalized to the cost of assets. Office furniture, equipment’s and vehicles costing less than Rs. 2,000 per unit are charged to profit and loss account in the year of purchase.

Depreciation on fixed assets is charged to Profit & Loss Account on Diminishing balance methodapplying the following rates:

nature of Assets Rate of depreciationFurniture & Fixtures 25%Office Equipment 25%Computer & Accessories 25%Vehicles 20%Engineering Equipment 15%Software 25%

Depreciation on fixed assets is charged for the period of Use. There has been a change in method of charging depreciation. In earlier fiscal year, depreciation is charged as per tax method claiming full depreciation for assets purchase up to poush, 2/3 depreciation for assets purchased from Magh up to Chaitra and 1/3 depreciation for assets purchased from Baisakh to Ashad. The change in estimates has increased profit in F/Y 2070/71 by Nrs. 27,399

4. Cash & bank balanceCash & Bank Balance comprise cash in hand and current and call deposits held in bank accounts.

5. Provision for income taxProvision for Income Tax has been computed as per

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Income Tax Act 2058 (Amendment) claiming tax paid in Kenya as foreign Tax Credit as per Section 71 of the Income Tax Act.

6. Deferred tax Asset/LiabilityThe company has the policy of creating Deferred Tax Assets/Liability as per the provision of Nepal Accounting Standard 09 on all Temporary Differences.

7. incomeRevenue are recognized on accrual basis and only if agreement has been signed and the agreement clearly stipulates the terms and condition for the payment for the receipt of service.

8. expensesExpenses are recognized on accrual basis and if expenses have been made through binding agreement between the parties and the agreement clearly stipulates the terms and conditions for the payment against the service taken.

9. Foreign Currency transactionsTransactions in foreign currency are stated in terms using the exchange rate prevailing on the date of transaction. 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 in accordance with NAS 11, Effects of Changes in Foreign Exchange Rates.

10. Retirement benefitsRetirement benefits for employees include a provident fund, a citizen investment trust and a gratuity scheme. Periodic contributions are made to the provident fund and charged to profit and loss as staff cost. Regular employees are eligible for gratuity after completing continuous three years of service in the company.

11. Contingent LiabilitiesAll known liabilities are provided for and liabilities, whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed under contingent liabilities.

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notes to tHe AnnUAL ACCoUnts

Related Party transactionFollowing are the related party transactions carried out at arm’s length during FY 2070-71:

Party Relationship transaction amount butwal Power Company Ltd.Projects:Lower ManangMarsyangdi HEP IIJhimruk Damage Study

Parent Company

2,502,950

112,500

Kabeli energy Ltd.Projects:Kabeli-A Bid EvaluationKabeli-A Additional (InfraCo)

Entity under common control of BPC 1,212,600

660,000

nyadi Hydropower Ltd.Projects:Nyadi Hydropower projectNyadi Transmission Line (Additional)

Entity under common control of BPC 1,163,458.50

603,705.40

Provision for income taxThe company has provided Rs. 3,740,243 against provision for income tax as per the provisions of Income Tax Act, 2058.

Deferred taxDeferred Tax has been computed considering the current tax rate of 25% applicable to the company on following heads:

Particulars Accoun ting base tax base Difference

Fixed Assets (other than land) 6,984,900.09 6,887,620.26 -97,279.82

Provision for gratuity 247,150.33 - 247,150.33

Provision for leave 1,189,318.00 - 1,189,318.00

total 8,421,368.42 6,887,620.26 1,339,188.51

Total Assets for the Year 334,797.13

Assets upto Previous Years 357,306.66

Expenses During the Year 2070-71 (22,509.53)

Advance tax & Foreign tax CreditTotal advance tax upto FY 2070/71 amounts to Rs. 6,739,208 including Rs. 5,083,125.96 paid to Kenyan Tax Authority as TDS for revenue from Kenya.

The company has claimed Rs. 2,209,847.89 as foreign tax credit for FY 2070/71 as per section 71 of Income Tax Act 2058.

zero VAt salesDuring the year, the company has booked the following as zero VAT sales in pursuant to Schedule 2 of VAT Act, 2052.

name of party Amount income Head

Kenya Tea Development Agency 24,768,253.26 Consultancy Income

AGES Consult, Pakistan 3,086,604.41 Consultancy Income

Hydro Plan Unit 12, UK 150,416.00 Consultancy Income

Multiconsult As, Norway 162,295.00 Grant Income

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Rs. 6,647,129.06 invoiced to Kenya Tea Development Agency in the month of Shrawan 2070 has been booked as consultancy income of FY 2069/70 due to income of FY 2069/70.

employee bonusThe company has provided Rs. 1,533,968 against employee bonus as per the provisions of Bonus Act, 2030.

Provision for Retirement paymentThe company has provided Rs. 1,189,318 against provision for leave and Rs. 247,150 against provision for gratuity during FY 2070/71. Gratuity expenses for the year includesRs. 130,183.03 for the staff deputed from Butwal Power Company as per the Service Rules & Regulations of Butwal Power Company.

Proposed DividendThe company has proposed 20% dividend for the FY 2070-71 as per the decision of annual general meeting of FY 2070-71.

FinAnCiAL RAtiosn Parameters UoM FY 2070/71 FY 2069/70 FY 2068/69

Liquidity Ratios

1 Current Ratio x 2.83 2.28 1.86

ii Profitability Ratios

Profitability Ratios related to Sales

Profit Margins

1 Gross Profit Margin % 40% 36% 36%

2 Operating Profit Margin % 20% 13% 15%

3 Net Profit Margin % 14% 10% 14%

Expenses

4 Operating Expenses Ratio % 75% 74% 76%

5 Administrative Expenses Ratio % 25% 26% 24%

investments Ratio

6 Return on Assets % 33% 24% 35%

7 Return on Capital Employed % 33% 24% 35%

8 Return on Equity % 25% 16% 30%

9 Book Value Per Share NRs 395.93 297.64 277.17

10 Earnings Per Share NRs 98.29 47.22 82.24

11 P/E Ratio x NA NA NA

iii Assets efficiency Ratios

12 Total Assets Turnover Ratio x 1.76 1.66 2.02

13 Working Capital Turnover Ratio x 2.09 2.23 3.03

iV Capital structure

14 Debt-Equity Ratio x 0% 0% 5%

15 Equity to Assets Ratio x 100% 100% 95%

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Ratio AnalysisLiquidity RatioThe current ratio highlights HCE’s financial position to meet the short term financial obligation. The current ratio was 1.86 in FY 2068/69, 2.28 in FY 2069/70 and it continued increasing in FY 2070/71 and now it is 2.83. The increase in receivables has caused the increase in this ratio but these receivables are from good debtors and are certain to be recovered in the FY 2071/72.

Profitability RatioThe profitability ratio is the performance indicator of HCE.

The gross profit margin has increased to 40% in FY 2070/71 from 36% of the FY 2069/70. The company is performing consistently well in terms of controlling direct cost and effort in revenue generation.

Operating Profit Margin has increased to 20 % in FY 2070/71 compared to 13% in FY 2069/70. Net profit margin also increased to 14% from 10% figure of FY 2069/70. Considering the present projects in hand and future prospects of the market these ratios will substantially increase in the future. In conclusion, the company has performed well in terms of profitability in FY 2070/71.

investment RatioReturn on Capital Employed (ROCE) and Return on Equity (ROE) are 33% and 25% respectively in FY 2070/71. These ratios were 24% and 16% in the FY 2069/70. The 9% increase in these ratios is due to the increment in profit margin.

The Book Value per share increased to NPR 395.93 from NPR 297.64 in FY 2069/70. Therefore, the Earning per Share (EPS) in this fiscal year has increased to NPR 98.29 from NPR. 47.22 in FY 2069/70.

Assets efficiency RatioTotal assets turnover ratio for this fiscal year is 1.76 in compared to 1.66 in FY 2069/70. Even when additional assets were purchased in FY 2070/71, the assets utilization is commendable as company was able to generate more revenue and improved the assets turnover.

The working capital turnover ratio is 2.09 in FY 2070/71compared to 2.23 in FY 2069/70. Since the receivables are being recovered in the FY 2071/72, this ratio is expected to be better in the FY 2071/72.

Gearing RatioHCE is 100 % equity financed in FY 2070/71.

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HCE

Fam

ily

Hydro-Consult engineering LtdGPO Box: 14408 Kathmandu, NepalGangadevi marga, Buddha NagarTel: +977-1-4782507 / 4785920Fax: +977-1-4785920Email: [email protected]: www.bpch.com.np

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annualreporthcel.com.np/images/pdf/reports/annual-report-final-2014.pdfincluding project planning,...

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