chilime hydropower project

8/12/2019 Chilime Hydropower Project

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CHAPTER 1

INTRODUCTION

1.1. Background of Study

Nepal has a huge hydropower potential. In fact, the perennial nature of Nepali rivers and the

steep gradient of the country's topography provide ideal conditions for the development of someof the world's largest hydroelectric projects in Nepal. Current estimates are that Nepal has

approximately 40,000 ! of economically feasi"le hydropower potential. #owever, the present

situation is that Nepal has developed only approximately $00 ! of hydropower. %herefore,"ul& of the economically feasi"le generation has not "een realied yet. (esides, the

multipurpose, secondary and tertiary "enefits have not "een realied from the development of its

rivers.

)lthough "estowed with tremendous hydropower resources, only a"out 40* of Nepal'spopulation has access to electricity. ost of the power plants in Nepal are run+of+river type with

energy availa"le in excess of the in+country demand during the monsoon season and deficit

during the dry season.

Nepal's electricity generation is dominated "y hydropower, though in the entire scenario ofenergy use of the country, the electricity is a tiny fraction, only * energy need is fulfilled "y

electricity. %he "ul& of the energy need is dominated "y fuel wood -$*/, agricultural waste

-*/, animal dung -*/ and imported fossil fuel -*/. %he other fact is that only a"out 40* ofNepal's population has access to electricity. !ith this scenario and having immense potential of

hydropower development, it is important for Nepal to increase its energy dependency onelectricity with hydropower development. %his contri"utes to deforestation, soil erosion anddepletion, and increased flooding downstream in the 1anges plain. 2hortage of wood also pushes

farmers to "urn animal dung, which is needed for agriculture. Not only this, the development of

hydropower will help to achieve the millennium development goals with protecting environment,increasing literacy, improving health of children and women with "etter energy. 1rowing

environmental degradation adds a sense of urgency.

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Energy Consu!t"on "n Ne!a#

%he electricity demand in Nepal is increasing "y a"out 3+* per year. )"out 40 * of populationin Nepal has access to electricity through the grid and off grid system. Nepal's %enth 5ive 6ear7lan -80089 8003/ aims to extend the electrification within country and export to India for

mutual "enefit. %he new #ydropower 7olicy 800 see&s to promote private sector investment in

the sector of hydropower development and aims to expand the electrification within the country

and export.

%he hydropower system in Nepal is dominated "y run+of+river 7rojects. %here is only one

seasonal storage project in the system. %here is shortage of power during winter and spill during

wet season. %he load factor is :uite low as the majority of the consumption is dominated "yhousehold use. %his im"alance has clearly shown the need for storage projects, and hence,

cooperation "etween the two neigh"oring countries is essential for the "est use of the hydroresource for mutual "enefit.

%he system loss is one of the major issues to "e addressed to improve the power system whichaccounts to "e 8 * including technical and non+technical losses li&e pilferage.

Status of Po$er %enerat"on and Trans"ss"on

Nepal has $00 ! of installed capacity in its Integrated Nepal 7ower 2ystem -IN72/. %he

power system is dominated "y the hydropower which contri"utes a"out 0 * of the system andthe "alance is met "y multi fuel plant. %he hydropower development in Nepal "egan with the

development of 00 &! 7harping power plant in . %he most recent significant power plantcommissioned is the 44+! ;ali 1anda&i ntil 0, hydropower development was under the domain of government utility, Nepal?lectricity )uthority -N?)/ only. #owever, with the enactment of new #ydropower

@evelopment 7olicy 8, the sector was opened to the private sector also. %here are num"er of

projects already "uilt "y the private developers. 7rivate power producers contri"ute 4 ! ofpower to the AIntegrated Nepal 7ower 2ystem'.

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%he major hydropower plants with their capacity are listed in the ta"le as followsB

Po$er P#ants "n O!erat"on

S&N& Po$er P#antCa!ac"ty

'()*

Annua#

Energy

'%)+*

O$ned ,y Ty!e

%rishuli 84 88 N?) D

8 2un&oshi 0 $$ N?) D

E 1anda& E N?) D

4 ;ule&hani I $0 $4 N?) 2%D

@evighat 4 E N?) D

$ ;ule&hani II E8 $ N?) 2%D

3 arshyangdi $ N?) 7D

7uwa $ 4 N?) D

odi 3 N?) D

0 ;aliganda&i 44 3 N?) 7D )ndhi&hola E (7C D

8 Fhimru& 8 (7C D

E ;himti $0 EE #7G D

4 (hote&oshi E$ 84$ (;7C D

Indrawati 3. N#7C D

$ 2yange 0.8 .8 2#C D

3 Chilime 80 0 C#C 7D

7iluwa E )H#CD D

2un&oshi 8.$ 4. 2#7C D

80 Cha&u ;hola . )lliance 7ower8 2mall hydro 8. 8$ N?) D

882mall hydro

-Isolated/$.4 N?) D

8E icrohydro 4.

%otal $.3

1.2. O-er-"e$ of C+"#"e Hydro!o$er Co!any .""ted

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Chilime #ydropower Company Gimited -Chilime/ was incorporated in with an o"jective of

hydroelectricity generation through optimal utiliation of resources within the country. Nepal

?lectricity )uthority -N?)/ holds majority ownership with * shareholding. emaining 4*shareholding is from general pu"lic including 0* e:uity ownership of local people.

Chilime owns and operates 88. ! power plant commissioned on )ugust 8, 800E and locatedin asuwa district, EE &m north of capital city ;athmandu. It sales "ul& electricity to N?) at

the long term 77) price. %he annual energy generation from plant is a"out 0 1!h.

Chilime has esta"lished following three su"sidiariesB

. asuwagadhi #ydropower Company Gimited.8. adhya (hote&oshi Falavidhyut Company Gimited.

E. 2anjen Falavidhyut Company Gimited.

Chilime, through its three su"sidiaries, is developing four hydropower projects with aggregate

capacity of 830.E !.

%he Chilime #ydropower 7lant is a pea&ing run off river type plant constructed and owned "yChilime #ydropower Company Gimited. It is located at EE &m north of ;athmandu at the right

"an& of (hote&oshi iver in asuwa @istrict. %he plant with the installed capacity of 88. !

is delivering power to the National 1rid through a E &m long $$ &H single circuit transmissionline at %risuli 7ower #ouse 2witchyard at %rishuli, Nuwa&ot.

%he electricity generated from the power plant is purchased "y N?) at the powerhouse and

evacuated as per the 77) made on Fune 8, 3 and its first amendment made dated @ecem"er

0, 8003.%he annual deemed energy sala"le to N?) is E8. 1!h, excluding penalty+freeoutage of 380 !h-E$ hours/ annually. %he plant has started its commercial generation from

00B00 hours of th (hadra 80$0 -84th )ugust 800E/. @uring nine years of its operation, the planthas "een operating successfully.

1&/&1& ("ss"on 0 "s"on

"s"on

2To ,e t+e #argest !u,#"c +ydro!o$er co!any "n Ne!a#&2

("ss"on

%o harness hydropower potential of the country for the "enefit of the people at large "y

optimally utiliing the untapped resources and creating synergy with the private sector. %o ensure attractive and sustaina"le long term return to our shareholders through prudent

and sound investment. %o create a competitive wor&ing environment with long term career prospects to our

employees where"y they will nurture a culture to learn, grow and put their "est effort to

the growth of the company.

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%o maximie the pu"lic participation and empower them to have "etter living, and

%o ma&e the communities in which we live, wor& and serve "etter places to "e.

a#ues

Pu,#"c 3ocus4!e strive to maximie the involvement of pu"lic as shareholders ensuring them attractive andsustaina"le return.

(anageent E5ce##ence4

!e are committed to ensure management excellence through innovation and adoption of the "est

practices "oth in execution and operation of the projects to maximie the efficiency and :uality

of the service.

Huan Resource

!e are committed to provide our employees opportunities to learn and grow to achieve their full

potential.

Cor!orate %o-ernance4

!e "elieve in "eing accounta"le, conducting "usiness ethically and transparently.

Cor!orate Soc"a# Res!ons","#"ty4

!e are committed to ta&e social initiatives for the development of local areas in particular and

the nation in general.

Po#"c"es

Quality Management Policy:

!eare committed to develop and generate electricity from hydropower projects

satisfying our sta&eholders through continual improvement in its technology, process,

human resource management and complying the statutory regulatory re:uirement.

Environmental Management Policy:

!e are committed to produce our products in an environment friendly and responsive

manner "y implementing, maintaining and continually improving our environmental

management system.

"s"on /6/6

%o develop 00 ! hydropower projects in our portfolio "y 8080.

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1&/&/& Strategy

%o develop hydropower projects "y optimally utiliing domestic and foreign resources through

its su"sidiary companies, and in alliance with pu"lic utilities and other prospective

private hydropower developers.

1&/&7& O$ners+"!

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1&/&8& Board of D"rectors

. r. )rjun ;umar ;ar&i

Chairperson

8. r. Gila Nath (hattrai

@irector

E. r. 2her 2ingh (hat

@irector

4. r. 1ovind aj ;harel

@irector

. r. ;ul an 1hising

anaging @irector

$. r. Fayandra 2hrestha

@irector

3. r. %ulasi am @ha&al

@irector

. r. 7hrupu %enjen %amang

@irector

. r. 6am ;umar 2hrestha

@irector

0. r. (idur (ahadur @hungana

Company 2ecretary

.8.. Perforance of P#ant

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%he power plant has very efficient and ro"ust electromechanical e:uipmentJs, as a result, the

plant is a"le to generate E.* excess energy in addition to the deemed energy as per the 7ower

7urchase )greement with Nepal ?lectricity )uthority. In fiscal year 80$3K0$, the plant has "een

successful in delivering chargea"le deemed energy E8.3 1wh, chargea"le excess energy of

0.03 1wh and free excess energy .8$ 1wh. Insurance of the plant has "een made with astriya

(eema 2ansthan.

1&/&9& Sa#"ent 3eatures

iver Chilime ;hola.

%ype of scheme un of river with pea&ing pondages

%ur"ine discharge 3.mLEKs

1ross head E. m

Net head EE3.4$ m

Installed capacity 88. !-8M.0 !/)verage annual energy E3. 1!h -E3 million units/

@eemed energy E8. 1!h-E8 million units/

Inta&e sie 8M.0 mM.8 m

@iversion !eir- GM#/ E mME.8 m

2luiceway !idth E.0m

@esanding (asin %ype @ufour -@ou"le Cham"er/

@esanding (asin @imension -GM(M#/ $0 mM 3. mME.3 m

2yphon -GM@/ mM8.8 m -2teel 7ipe/

7ower Canal -GM(M#/ $0$ mM 8.8 mM 8.8 m5eeder canal with (emdang &hola -G/ 8. m

7ea&ing pondage 2torage Capacity E0E8 mLE

7ressure Conduit -G/ 44 m

#eadrace %unnel -G/ 88$. m

>nderground 2urge tan& -@M #/ $. mMEE m

>nderground 7enstoc& -GM@/ $E. mM.$4 m to 8.3 m

%ransformer Cavern -GM!M#/ $3 mM0 mM 3. m

2witchgear oom -GM!M#/ 4 mM 8 mM. m

7owerhouse Cavern -GM!M#/ 40 m to 0 m M$ mM $. m

%ailrace tunnel -GM!M#/ 84E mM E mM E m

%ur"ine -%ype output/#oriontal, 7elton -8M.8 !/ @igital

1overnor

1enerators -%ype, Capacity Holtage/ (rushless ?xcitation, E H), ;H

%ransformers -%ype, Capacity

Holtage/2ingle 7hase, 4.8 H) M 3 Nos.

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2witch gear %ype 1as Insulated etal Clad -1I2 2ystem/

%ransmission Gine -GMH Circuit/E ; M $$ ;H 2ingle Circuit -!olf

Conductor/

%he generation statistics of the 7lant is shown "elow,

@escription 80$0K$ 80$K$8 80$8K$E 80$EK$4 80$4K$ 80$K$$ 80$$K$3 80$3K$

@eemed

1eneration

-!h/

, E8,3 EE,88 E8,3$ E8,0$ E8,3$ EE,8E E8,3

%ransmitted

etered

?nergy-!h/

E,0 E,$ E,$$ 44,E 4,3$ 44,0 4,E8 0,0

Chargea"le?nergy

-!h/

0,48 84,44 E$,E88 E,$ E,400 48,E 4,$ 48,$

.8.3. Suary of P#ant Status

%he hydraulic structures of the plant are in good condition and major repair wor&s have not "een re:uired

so far. %he main e:uipmentJs have proven to "e ro"ust and the whole electromechanical system design

has proven to "e effective and as per the conditions and practices of the Nepalese system. It is seen from

the data that the generation from the plant, for last seven years, has "een fairly higher than the deemed

generation.

Improvement in the system such as cooling water system, inta&e trash rac&, desander flushing, reservoir

flushing, etc., has contri"uted to the high availa"ility of the plant. )s a result the plant has "een a"le to

generate excess energy "esides deemed energy from the 8nd year of its generation.

1&7& Introduct"on of Prof"ta,"#"ty

5inancial analysis is the use of statement and calculation of ratios, to monitor and evaluate the

financial performance and position of a "usiness. 5inancial analysis needs the use of the various

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types of the financial information, such as "alance sheet, income statement, sources and uses of

fund statement and statement of each cash flow. 5inancial analysis can "e underta&en "y

management of the firm, or "y parties outside the firm, for example owners, creditors etc.

5inancial analysis is the process of extracting and studying information in financial statement for

the use in management decision ma&ing. %herefore, statements provide a summaried view ofthe financial position and operation of the firms. %herefore, much can "e learnt a"out a firm from

a careful examination of its financial statements as valua"le documents or performance reports.

7rofita"ility is the a"ility to generate profit. It shows the rate at which profit is growing. %he

percentage of input should "e e:ual to the percentage of output. If itJs not e:ual, it indicates that

there is some pro"lem in the company.

7rofit is the difference "etween revenue and expenses over a period of time. It is the ultimate

output of the company and is the goal of each "usiness concern, whether trading, commercial or

industrial. ) venture is underta&e only after an extremely careful assessment with regard to itsprofita"ility has "een made and found satisfactory.


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. anagement practices are tradition.

8. 7oor efficiency due to the use of old technology.

E. ar&et is limited. It cannot cover considera"le position in mar&et.4. %here is lac& of effective channels of communications. 2o re:uired information may not

"e achieved at the time of re:uirement.

. Gac& of s&illed trained and professional employees.$. @eserving and a"le employees do not get chance to wal& due to nepotism and favoritism

3. 5re:uent changes in 7olitical and government policies.

1&:& O,;ect"-e of t+e Study

) 2tudy without clearly stated o"jectives is li&e a fishing expedition in un+chartered water.

?verything else that follows in the study as selection of varia"le to studied, determination of

methods, etc. is "ased on o"jectives. D"jectives are value statement, which descri"e the reasons

for the study. %he pro"lem to addressed, expected achievements, and limitations imposed upon

the study. %he following are the o"jectives of the study.

. %o analye profita"ility position in relation to fund mo"iliation of Chilime #ydropower

Company Gtd.

8. %o find the pro"lems of Chilime #ydropower project.

1&9& S"gn"f"cance of t+e Study

2ince the 7rofita"ility analysis is the main study of this project wor& and this is very important in

the context of Nepalese "usiness organiation whose main goal is to ma&e profit. ?very

organiation aims to earn profit increasing order "ut this may not just happen regularly. )n idle

"lend of sales and cost "ears good profit. It is expected that this study help to promotehydropower "usiness "y analying their accounting activities. It is sure that the survival and

promotion of such "usiness is directly depending upon good management. %hey can survive only

if they are "earing profit. %his study also help them to plan the profit "y changing the level of

different profit factors li&e selling price, varia"le cost, level of output and the fixed cost. 2o this

project has also tried to ma&e such firms conscious to adopt latest management practices

regarding cost controlling.

1.7. .""tat"ons of t+e Study

%his project wor& is conducted under the following limitationsB

. %he 2tudy is focused on profita"ility analysis of Chilime #ydropower Company Gtd on

which, it assumed that profita"ility can "e found "y studying gross profit margin on sales,

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net profit margin on sales, return on total assets, return on common e:uity and earning

power ratio.

8. %he study is solely "ased on data provided "y the firm on its annual report. 2o the result

is highly dependent on the relia"ility of the data provided.

E. %he result of the study in some cases is affected "y lac& of appropriate information as

needed.

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7rofita"ility is an important factor to "e considered as it determines whether the company has

"een successfully operating or not. ItJs one of the main judgment factors to show the real worth

of the company or organiation for that matter.

7rofita"ility is the net result of num"er of polices and decisions. %he ratio examined thus to

provide some information a"out the way the firm is operating. 7rofita"ility ratio is shows thecom"ined effect of li:uidity, assets management and de"t management on operating result.

ajor types of profita"ility ratios are+

a. 1ross 7rofit argin on 2ales". Net 7rofit argin on 2ales

c. eturn on %otal )ssets -D)/

d. eturn on Common ?:uity -D?/e. ?arning 7ower atio

/&1&1& %ross Prof"t (arg"n on Sa#es

%his ratio measures gross profit per rupees of sales. 2o, high gross profit margin on sales is a

sign of good management efficiency to produce goods and service at low cost.

It is calculated "y dividing gross profit "y sales

%ross Prof"t (arg"n on Sa#es > %ross Prof"t ? Sa#es

1ross 7rofit margin on sales for five fiscal year is shown "elow,

'Rs& In ("##"on*

5iscal 6ear 1ross 7rofit %otal 2ales atio -*/80$K80$$ 8.E E.$ .8

80$$K80$3 E.E .$ .34

80$3K80$ 0.4 03.3 3.E

80$K80$ 33.3 804.$0 $$.84

80$K8030 33.30 88.E$ 3.$E

)verage 3$.$4

2ourceB )nnual eport of Chilime #ydropower Co. Gtd.

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3"gure /&1&1 'a*

5rom the a"ove ta"le and figure, it is clear that the gross profit and total sales for the fiscal year

80$K80$$ are 8,E0,000 and s E,$0,000 respectively. Its ratio is .8*. %he gross profit

and total sales for the fiscal year 80$$K80$3 are E,E0,000 and s ,$0,000 respectively. Its

ratio is .34*. %he gross profit and total sales for the fiscal year 80$3K80$ are 0,40,000

and s ,03,30,000 respectively. Its ratio is 3.E*. %he gross profit and total sales for the

fiscal year 80$K80$ are 33,30,000 and s ,804,$00,000 respectively. Its ratio is $$.84*.

%he gross profit and total sales for the fiscal year 80$K8030 are 33,300,000 and s

,88,E$0,000 respectively. Its ratio is 3.$E*.

%he ratio is also shown "y trend lines follows,

3"gure /&1&1',*

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/&1&/& Net Prof"t (arg"n on Sa#es

%his ratio measures net profit per rupees of sales. ) high net profit margin ratio is a sign of good

management efficiency to produce goods and services at low cost. It is calculated "y dividing net

profit "y sales.

Net Prof"t (arg"n on Sa#es > Net Prof"t ? Sa#es

%he net profit margin on sales for five fiscal year is shown "elow,

'Rs& In ("##"on*

5iscal 6ear Net 7rofit %otal 2ales atio -*/

80$K80$$ 3E.E$ E.$ 3.$0

80$$K80$3 333.4E .$ 3.0

80$3K80$ 4E.4 03.3 3.E3

80$K80$ 4.E8 804.$0 3.4

80$K8030 $.0 88.E$ 3.3$)verage 3.4

Source: Annual reports of Chilime Hydropower Co. td.

3"gure /&1&/ 'a*

5rom the a"ove ta"le and figure, it is clear that the net profit and total sales for the fiscal year

80$K80$$ are s 3E,E$0,000 and s E,$0,000 respectively. Its ratio is 3.$0*. %he net

profit and total sales for the fiscal year 80$$K80$3 are s 333,4E0,000 and s ,$0,000

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respectively. Its ratio is 3.0*. %he net profit and total sales for the fiscal year 80$3K80$ are

s 4E,40,000 and s ,03,30,000 respectively. Its ratio is 3.E3*. %he net profit and total

sales for the fiscal year 80$K80$ are s 4,E80,000 and s ,804,$00,000 respectively. Its

ratio is 3.4*. %he net profit and total sales for the fiscal year 80$K8030 are s $,00,000

and s ,88,E$0,000 respectively. Its ratio is 3.3$*.

%he ratio is also shown "y trend line as follows

3"gure /&1&/',*

/&/&7& Return on Tota# Assets 'ROA*

D) measures the return on total assets after interest and taxes. ) higher ratio indicates the

efficiency of overall financial resources to investment is good. It means, higher the ratio, the

"etter will "e the performance. It is calculated "y dividing net profit "y total assets.

Return on Tota# Assets > Net Prof"t ? Tota# Assets

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%he return on total assets for five fiscal year is shown "elow,

'Rs& In ("##"on*

5iscal 6ear Net 7rofit %otal )ssets atio -*/

80$K80$$ 3E.E$ $.8 E.E3

80$$K80$3 333.4E $.E 4.80$3K80$ 4E.4 84.38 E.84

80$K80$ 4.E8 88$4. 4.34

80$K8030 $.0 84$.40 E.4

)verage 40.08


3"gure /&1&7'a*

5rom the a"ove ta"le and figure, it is clear that the net profit and total assets for the fiscal year

80$K80$$ are s 3E,E$0,000 and s ,$,80,000 respectively. Its ratio is E.E3*. %he net

profit and total assets for the fiscal year 80$$K80$3 are s 333,4E0,000 and s ,$,E0,000

respectively. Its ratio is 4.*. %he net profit and total assets for the fiscal year 80$3K80$ are

s 4E,40,000 and s 8,4,380,000 respectively. Its ratio is E.84*. %he net profit and total

assets for the fiscal year 80$K80$ are s 4,E80,000 and s 8,8$4,0,000 respectively. Its

ratio is 4.34*. %he net profit and total assets for the fiscal year 80$K8030 are s $,00,000

and s 8,4$,400,000 respectively. Its ratio is E.4*.

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3"gure /&1&7',*

/&1&8& Return on Coon E@u"ty 'ROE*

%his ratio measures return on common e:uity -D?/ or the rate of return on stoc&holderJs

investment. %his e:uity involves paid up capital, general reserves, and retained earnings of

surplus general loan provision. It reflects whether the firm has earned a satisfactory return forits e:uity+ holders or not. 2o, higher ratio is favora"le for stoc&holders. It is calculated "y

dividing net profit "y total assets.

eturn on Common ?:uity -D?/ O Net 7rofit K Common ?:uity.

%he return on common e:uity for five fiscal year is shown "elow,

'Rs& In ("##"on*

5iscal 6ear Net 7rofit Common ?:uity atio -*/

80$K80$$ 3E.E$ 38.$0 00.3

80$$K80$3 333.4E 38.$0 0$.$80$3K80$ 4E.4 3E.0 $.$4

80$K80$ 4.E8 3E0.0 4.$4

80$K8030 $.0 343.80 .8E

)verage 0.33


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3"gure /&1&8'a*

5rom the a"ove ta"le and figure, it is clear that the net profit and common e:uity for the fiscal

year 80$K80$$ are s 3E,E$0,000 and s 38,$00,000 respectively. Its ratio is 00.3*. %he

net profit and common e:uity for the fiscal year 80$$K80$3 are s 333,4E0,000 and s

38,$00,000 respectively. Its ratio is 0$.$*. %he net profit and common e:uity for the fiscal

year 80$3K80$ are s 4E,40,000 and s 3E,00,000 respectively. Its ratio is $.$4*. %he net

profit and common e:uity for the fiscal year 80$K80$ are s 4,E80,000 and s

,3E0,00,000 respectively. Its ratio is 4.$4*. %he net profit and common e:uity for the fiscal

year 80$K8030 are s $,00,000 and s ,343,800,000 respectively. Its ratio is .8E*.


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/&1&:& Earn"ng Po$er Rat"o

%he ratio of operating profit ?(I% to total assets measures earning power ratio "efore interest

and taxes. It is calculated "y dividing earnings "efore interest and taxes "y total assets.

Earn"ng Po$er Rat"o > EBIT ? Tota# Assets

%he earning power ratio for five fiscal year is shown "elow,

'Rs& In t+ousand*

5iscal 6ear ?(I% %otal )ssets atio -*/

80$K80$$ 3E.E$ $.8 E.E3

80$$K80$3 333.4E $.E 4.

80$3K80$ 4E.E 84.38 E.8

80$K80$ 4E.84 88$4. 4.$

80$K8030 $8.$3 84$.40 E.0

)verage E.Source: Annual reports of Chilime Hydropower Co. td.

3"gure /&1&:'a*

5rom the a"ove ta"le and figure, it is clear that the ?(I% and total assets for the fiscal year

80$K80$$ are s 3E,E$0,000 and s ,$,80,000 respectively. Its ratio is E.E3*. %he ?(I%

and total assets for the fiscal year 80$$K80$3 are s 333,4E0,000 and s ,$,E0,000

respectively. Its ratio is 4.*. %he ?(I% and total assets for the fiscal year 80$3K80$ are s

4E,E0,000 and s 8,4,380,000 respectively. Its ratio is E.8*. %he ?(I% and total assets

for the fiscal year 80$K80$ are s 4E,840,000 and s 8,8$4,0,000 respectively. Its ratio is

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4.$*. %he ?(I% and total assets for the fiscal year 80$K8030 are s $8,$30,000 and s

84$,400,000 respectively. Its ratio is E.0*.

%he ratio is also shown "y trend line as follows,

3"gure /&1&:',*

/&/& Pro,#e and So#ut"ons

(y the analysis of all the data here, we can say that there is not much pro"lem while running this

project and there is average point for this project. 2o, company seems to achieve its primary goal

and for the expansion it has to ta&e over lots of projects towards villages and remote areas.

/&7& Study Resu#t

5rom the a"ove analysis we can derive the following resultsB

(y the profita"ility analysis of Chilime #ydropower 7roject, we can conclude that the

project is a"le to utilie its sales of product.

%his study shows medium result, li&e neither good nor "ad. )veragely the project isrunning good "ut not "est.

5inally it seems that the company has success in achieving its primary o"jectives.

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CHAPTER 7

'SU((AR= CONC.USION 0 RECO((ENDATION*

7&1& Suary

7roject management is fast "ecoming an exciting new profession and it is new way of thin&inga"out achieving project o"jectives. 2o, project managers are in great demand for pu"lishing

house, university, agriculture and rural development, industrial construction project etc. It is a

system approach for efficient and effective achievement of project o"jectives through assignment

of inception to completion, co+ordination across functional lines and proper utiliation of

planning and control tools.

Chilime #ydropower project is the private sector power project in Nepal, "ased on (uild+Dwn+

Dperate %ransfer -(DD%/ policy of Nepal 1overnment. Nepal ?lectricity )uthority and #7G

entered into a 7ower 7urchase )greement -77)/ on 808. 7roject planning in Chilime

#ydropower Company was ta&en "y top management and project manager. ecruitment ofemployee was done "y "oth internal and external sources, Fo" evaluate is done through rating,

pair comparison etc. and project evaluation is done to improve project implementation. )ll the

phases are finished in prescri"ed time. If there is conflict "etween management and employee,

the executives and project manager resolve the conflict. %o motivate the employee project give

"onus to its employee. %hey also provide training to improve employeeJs s&ill. %he controlling

system used "y Chilime #ydropower Company Gimited was "udget and schedule. %he input

ta&en "y the project is people, technology, money etc.

) study without clearly stated o"jective is li&e fishing expedition in un+ chartered water.

?verything else that follows in the study as selection of varia"le to studied, determinations of themethods etc. is "ased on o"jectives. D"jectives are value statement, which descri"e the reason

for the study. %he pro"lems to "e addresses, expected achievements, and limitations imposed

upon the study

7&/& Conc#us"on

%his study includes the following thingsB

. 7roject management is "ecoming an exciting new profession and it is new way of

thin&ing a"out achieving project o"jectives.

8. Chilime #ydropower project is the private sector power project in Nepal.E. 7roject planning in Chilime #ydropower Company was ta&en "y the top management

and project manager. ecruitment of employees was done "y "oth internal and external

sources.4. ) study without clearly stated o"jectives is li&e fishing expedition in un+chartered water.

. Chilime #ydropower Co. Gtd. performance is effective in sense of profita"ility and

customers.

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7&7& Recoendat"on

5rom the a"ove study of the profita"ility analysis of Chilime #ydropower Company some

suggestion and recommendations are "eing forwarded.

. %he Chilime #ydropower Company should try to reduce the costs, which helps the firmto earn even more profit.

8. 2ince the company is getting good amount of profit, it could even improve its position "y

achieving its target to generate 00 ! as soon as possi"le.E. (ut while increasing the production, it should use latest technology of high :uality so that

there should "e less chance of "rea&down of e:uipmentJs.4. Nepotism and favoritism need to "e stop so that deserving candidate can jointhe team.

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BIB.IO%RAPH=

)grawal 1. -8000/,Project Management in Nepal, .; pu"lishers

and @istri"utors.

@awadi .N -8000/,Nepalese Economics, (hri&uti )cademic

7u"lications.

2hrestha ;.N -/, Organization Management, Na"in 7ra&ashan.

2hrestha ;.N -/,Human Resource Management, Na"in 7ra&ashan.

1himire 2. -800/, Financial Management, ;.7 7usta& (handar.

)nnual report -80$ to 80E/ of Chilime #yrdropower Company Gtd.

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chilime hydropower project

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