Swet Ganga Hydropower & Construction Limited
Dhumbarahi, KMC-4, Kathmandu, Nepal
Unaudited Financial Reports (Quarterly)
As on 4th Quarter (2083.03.32) of the Fiscal Year 2082/083
FOURTH QUARTER DISCLOSURE AS OF 2083.03.32
AS PER SECURITIES REGISTRATION AND ISSUANCE REGULATION
ANNEXURE-14 (RELATED TO SUB REGULATION 1 OF REGULATION 26
Statement of Financial Position
Un-Audited This Quarter Ending Un-Audited Previous Quarter Ending Audited Corresponding Previous Year Quarter Ending
| Assets | |||
| Non-Current Assets | |||
| Property Plant & Equipment | 14,266,201 | 16,466,420 | 19,187,325 |
| Intangible Assets | 5,886,505,209 | 5,945,340,611 | 6,033,203,918 |
| Intangible Assets Under Development | 9,648,580 | 9,648,580 | 9,593,502 |
| Right of Use Asset | 7,769,142 | 8,008,728 | 8,727,485 |
| Current Assets | |||
| Advance and Receivables | 185,828,497 | 165,018,804 | 158,752,076 |
| Inventories | 13,771,456 | 14,133,276 | 11,316,249 |
| Other Current Assets | 11,434,790 | 16,281,749 | 5,710,050 |
| Cash and Cash Equivalents | 3,483,180 | 4,705,070 | 2,175,601 |
| Current Tax Assets | 464,340 | 463,916 | 463,692 |
| Total Assets | 6,133,171,395 | 6,180,067,153 | 6,249,129,898 |
| Liabilities | |||
| Non-Current Liabilities | |||
| Borrowings | 4,319,916,682 | 4,365,763,682 | 4,497,298,036 |
| Other Financial Liabilities | 76,088,189 | 74,142,226 | 69,552,101 |
| Provisions | 5,009,053 | 4,791,780 | 1,183,368 |
| Lease Liabilities | 8,410,339.31 | 9,600,761 | 8,963,641 |
| Current Liabilities | |||
| Borrowings | 379,873,961 | 380,855,078 | 443,759,937 |
| Other Financial Liabilities | 9,660,312 | 10,791,022 | 71,537,370 |
| Other Liabilities | 318,837 | 866,724 | 251,416 |
| Lease Liabilities | 1,419,905 | 325,496 | 1,243,249 |
| Total Liabilities | 4,800,697,277 | 4,847,136,768 | 5,093,789,118 |
| Equity | |||
| Share Capital | 1,593,000,000 | 1,593,000,000 | 1,593,000,000 |
| Less: Calls in Arrears | (21,000) | (28,000) | (94,000) |
| Net Share Capital | 1,592,979,000 | 1,592,972,000 | 1,592,906,000 |
| Retained Earnings | (264,893,710) | (264,674,945) | (440,198,550) |
| Other Reserves | 4,388,828 | 2,633,329 | 2,633,329 |
| Total Equity | 1,332,474,117 | 1,332,930,384 | 1,155,340,780 |
| Total Liabilities and Equity | 6,133,171,395 | 6,180,067,153 | 6,249,129,898 |
Statement of Profit or Loss
Un-Audited This Quarter Ending Un-Audited Previous Quarter Ending Audited Corresponding Previous Year Quarter Ending
| Revenue From Sale of Electricity | 847,095,435 | 676,602,132 | 786,525,863 |
| Plant Operating Expenses | (87,801,562) | (59,609,138) | (100,823,826) |
| Gross profit | 759,293,873 | 616,992,993 | 685,702,038 |
| Other Income | 1,677,383 | - | 28,500 |
| Amortization | (226,938,387) | (168,102,985) | (226,027,268) |
| Depreciation | (5,035,182) | (3,802,063) | (5,084,634) |
| Administrative and Other Operating Expenses | (23,969,906) | (17,748,436) | (25,605,636) |
| Net operating profit | 505,027,781 | 427,339,510 | 429,012,999 |
| Financial Costs | (314,798,544) | (239,586,765) | (422,790,720) |
| Financial Income | 766,381 | 514,263 | 900,970 |
| Foreign Exchange Gain/(Loss) | (10,026,993) | (7,120,471) | (5,287,115) |
| Profit/(Loss) before tax & bonus | 180,968,625 | 181,146,536 | 1,836,134 |
| Provision for Staff Bonus | (3,619,372) | (3,622,931) | (36,723) |
| Profit/(Loss) before tax | 177,349,252 | 177,523,605 | 1,799,411 |
| Income Tax Expense | - | - | - |
| Net Profit for the Year | 177,349,252 | 177,523,605 | 1,799,411 |
| Major Financial Highlights | |||
| Earnings Per Share (EPS) | 11.13 | 11.14 | 0.11 |
Return on Assets (ROA) 2.89% 2.87% 0.03%
| Net worth Per Share | 83.65 | 83.68 | 72.53 |
| Current Ratio | 1.68 | 0.51 | 0.34 |
| P/E Ratio | 28.74 | 33.83 | 3512.80 |
| Market Value Per Share | 320.00 | 377.00 | 396.82 |
Financial Statements
• The Unaudited financial statement for the fourth quarter have been published as a part of this report.
• Service concession arrangements of Swet Ganga Hydropower & Construction Ltd. (SGHCL) includes Tallo Likhu Jalavidyut Aayojana (28.1 MW). Service concession arrangements are amortized over the contractual period as per the Power Purchase Agreement (PPA) of Tallo Likhu Jalavidyut Aayojana. As per Generation License, life of Tallo Likhu Jalavidyut Aayojana is up to 2108/12/27. Pursuant to the life of the project, the company has amortized the intangible assets. In case of Property Plant & Equipment, depreciation has been calculated on written down value based upon useful life of assets.
• During the period, 1,070 disqualified local shares were reallotted to eligible local shareholders. As at the reporting date, calls in arrears relate to 210 of these shares.
• The financial cost includes interest paid on long term loan and working capital loan amounting NPR 308,234,086 up to 4th quarter 2082-083.
Management Analysis
• Till the end of Asadh 2083, Tallo Likhu Jalavidyut Aayojana has generated income of NPR 847,095,435 from Sale of Electricity. The revenue from the sale of electricity has increased from last year's corresponding figures by 7.70%.
• The Administrative and other operating expenses has decreased from last year's corresponding figures by 6.39%.
• The Finance cost has decreased from last year's corresponding figures by 25.54% since the rate of interest has decreased and principal amount is being repaid.
Legal Proceedings
• During the period, no legal cases were raised or pending against the Company and from the company.
Analysis of Company's Share Transaction
• The major highlights of Share transactions during the quarter are as follows:
| Particulars This Quarter Ending Previous Quarter Ending Corresponding Previous Year Quarter Ending | |||
| Maximum Price NPR. | 408.00 | 487.60 | 520 |
| Minimum Price NPR. | 315.10 | 370.30 | 390 |
| Closing Price NPR. | 320.00 | 377.00 | 396.82 |
| Total Turnover NPR. | 299,370,454.20 | 1,700,456,266.40 | 354,709,590.60 |
| Total Transactions | 7,157 | 18,559 | 7,329 |
| No. of Transaction Day | 64 | 53 | 63 |
| Total Traded volume | 810,673 | 4,034,122 | 802,744 |
Problems & Challenges
Internal Challenges
• Retention of skilled human resources.
External Challenges
• Delay of statutory approvals & inconsistent regulatory and policy level commitment from the government regulatory agencies in the development of hydroelectric projects.
• Fluctuating cost of capital and devaluation of local currency.
• Natural disaster such as flood, earthquake, drought, etc.
• Lack of domestic suppliers for hydropower equipment and spare parts.
• Climatic Changes & Hydrological Risk.
• Cascading effect of upstream hydropower projects.
Strategies
• Fund management and strategic investment as per the project investment plan.
• Maintaining adequate stock of spare parts & equipment.
• Timely supervision, inspection & maintenance of project assets.
• Adequate insurance policies against the loss due to natural disaster and force majeure.
• Lobbying with government agencies for investment friendly environment.
• Implementation of HR optimization plan.
Corporate Governance
The Board of Directors, Audit Committee, other Committees, and Management Team are committed to strengthening good corporate governance within the company. Swet Ganga Hydropower & Construction Ltd. has written manuals, policies, rules & guidelines for the proper functioning of the operation of the company.
Declaration
I, the General Manager of this Company, take the responsibility for the accuracy of the information and details mentioned in this report for the period of Fourth Quarter of FY 2082/083, 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.
