न्यादी हाइड्रोपावरको अपरिष्कृत वित्तीय विवरण (असार २०८३)Nyadi Hydropower: Unaudited Financial Statement (Ashad 2083)

UNAUDITED STATEMENT OF FINANCIAL POSITION AS ON ASHAD 32, 2083

Figures in NPR '000

Particulars This Quarter Ending (Ashad End 2083) Previous Quarter Ending (Chaitra End 2082) Corresponding Previous Year Quarter Ending (Ashad End 2082)

ASSETS

Non-Current Assets
Property, Plant and Equipment	5,806	4,303	13,782
Intangible Assets	5,320,412	5,379,124	5,547,281
Other Non Current Assets	1	1	307

Current tax assets (Net) 343 300 -

Total Non-Current Assets	5,326,562	5,383,728	5,561,370
Current Assets
Cash and Cash Equivalents	60,389	75,725	11,864
Bank Balance Other than Cash and Cash Equivalents	330	330	14,102
Other Financial Assets	114,911	233,322	119,177
Other Current Assets	23,412	22,216	31,137
Total Current Assets	199,042	331,593	176,280
Total Assets	5,525,604	5,715,321	5,737,650

EQUITY AND LIABILITIES

Equity
Equity Share Capital	1,500,000	1,500,000	1,500,000
Advance for share capital	(617,933)	150,000	150,000
Other Equity	150,000	(510,602)	(629,153)
Total Equity	1,032,067	1,139,398	1,020,847
Liabilities
Non-Current Liabilities
Borrowings	4,163,287	4,240,792	4,347,596
Other Financial Liabilities	101,463	102,032	127,868
Provisions	2,619	2,614	2,199
Total Non-Current Liabilities	4,267,369	4,345,438	4,477,663
Current Liabilities
Borrowings	100,000	100,000	100,000
Trade Payables	19	261	2,423
Other Financial Liabilities	50,614	49,792	45,920
Other Current Liabilities	75,535	80,432	90,797
Total Current Liabilities	226,168	230,485	239,140
Total Liabilities	4,493,537	4,575,922	4,716,803
Total Equity and Liabilities	5,525,604	5,715,320	5,737,650

UNAUDITED STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED ASHAD 32, 2083

Figures in NPR '000

Particulars This Quarter (Ashad End 2083) Previous Quarter Ending (Poush End 2082) Corresponding Previous Year Quarter Ending (Ashad End 2082)
Revenue from Operations	652,012	609,770	646,688
Project Operating Expenses	(299,172)	(221,585)	(281,233)
Gross profit	352,840	388,184	365,455
Other Income	10,869	10,044	689
Administrative and Other Operating Expenses	(32,731)	(23,466)	(39,675)
Net Operating Profit	330,978	374,762	326,469
Finance Cost	(291,427)	(227,642)	(421,412)
Finance Income	895	657	1,587
Profit / (Loss) before Tax & Bonus	40,447	147,777	(93,356)
Provision for Staff Bonus	-	-	-
Provision for Reserves	-	-	-
Profit / (Loss) before Tax	40,447	147,777	(93,356)
Income Tax Expense	-	-	-
Net Profit for the year	40,447	147,777	(93,356)
Other Comprehensive Income
Total Comprehensive Gain/(Loss), Net of Tax	40,447	147,777	(93,356)

FOURTH QUARTER DISCLOSURE AS OF ASHAD 32, 2083 AS PER SECURITIES REGISTRATION AND ISSUANCE REGULATION Annexure -14 (Related to Sub-Regulation 1 of Regulation 26)

1 FINANCIAL STATEMENTS

• The Unaudited Financial Statements for the fourth quarter and key financial ratios have been published along with this report.

• Transactions with related parties: Business Transactions were conducted with related parties at arm's length in line with section 93(3c) of the Company Act, 2063. NHL has been availing promoter's loan and rental and other associated facilities from Butwal Power Company Limited and using various consultancy service as an when needed from Hydro Consult Engineering Ltd.

• Key Financial Indicators

Period Earning per share Net Worth Per Share Current Ratio Price Earning Ratio Return on Assets

This Quarter End	2.70	68.80	0.88	33.28
Previous Quarter End	9.85	75.96	1.44	13.87
Corresponding Previous Year Quarter End	(6.22)	68.06	0.74	(73.12)

2 MANAGEMENT ANALYSIS

• "Any changes in the Stock, Income and Liquidity during the quarter and the reason for change, if any": Stock/spare parts of the power plants equipments has been maintained at a sufficient level as provided by the Contractor as per the terms of the EPC Contract. Finance cost on Term Loan of the project do have serious impact on the company's profitability as it covers a majority portion of company's expense. Similarly, amortization of Intangible Assets during the period also affects the profitability of the company.

• "Statement of Management Analysis on the Company's upcoming Business Plans": The Company has not any such plan for other project developments other than for effective/efficient operation of the project rather than lobbying for the construction of 132 kV Tarikuna substation and reversal of "Take and Pay" clause to "Take or Pay" with Nepal Electricity Authority.

• "Analytical Statement on the possible effect on Company's Profitability, Stock and Cash Flows based on the past experience.": Due to the contingency plan with NEA i.e. Sale of energy on "Take and Pay Basis", NEA has not taken full generation of the project during the last quarter and the company has to abide with the dispatch instruction from Load Dispatch Centre, NEA. This has made a serious impact on current financial year's profitability.

3 LEGAL PROCEEDINGS

• Case filed by or filed against the Company during the quarter, if any: None

• Case filed by or filed against the Company or its Promoter or Director for violation of the prevaling regulation or committing the criminal offense, if any: None

• Case filed against the Promoter or Director on Financial crime, if any: None

4 ANALYSIS OF COMPANY'S SHARE TRANSACTIONS

• NHL shares were actively traded during this quarter.

• The major highlights of share transactions during the quarter are as follows:

• Maximum Price - NPR 439 ; Minimum Price - NPR 341 ; Closing Price - NPR 359 ; No. of Transaction Days - 56 ; Total Transactions - 5,921 ; Total Traded Volume - 512,410 and Total Traded Value- NPR. 142,931,244.

5 PROBLEMS AND CHALLENGES

Internal

• Optimization and Retention of skilled human resources;

• Fund Management problem due to liquidity problem in financial market resulting increase in finance cost

• Managing the operational efficiency of the project

External

• Impact of Global Warming and Climate change effects and the amount of rain/snow fall in the project catchment area.

• Foreign Exchange Risk exposures in payment to contractrors due to fluctuation of currecy in the International Foreign Exchange Markets;

• Delay in construction of Tarikuna Substation & 132 kV Transmission Line by Nepal Electricty Authority and the financial impact to project due to Line loss and Generation loss for the evacuation of energy generated from the project as per the Contingency plan with NEA.

Strategies

• To maximize generation of powerplant with at least maintaining the contract energy of Power Purchase Agreement.

• To operate the powerplant efficiently and effectively.

6 CORPORATE GOVERNANCE

Board of Directors, Project Steering Committee, Audit Committee, Other Committees and Management Team are committed towards strengthening good corporate governance within the company. NHL has written manual, policies, rules & guidelines for proper functioning of the operation of the company.

7 DECLARATION OF CHIEF EXECUTIVE OFFICER ON TRUTH, TACTFULNESS

I, the Chief Executive Officer of this Company, take the responsibility of accuracy of the information and details mentioned in this report for the fourth quarter of FY 2082/83, hereby declare that the information and details provided in this Report are true, based on facts, and complete to the best of my knowledge and that information necessary for taking informed decision by the investors are not concealed.