This document acknowledges those who helped complete the report and provided a heterogeneous environment for the group members. It then thanks friends from different backgrounds who collaborated on the MBA program. The document appears to be a report on analyzing the financial statements of Chilime Hydropower Company, as it includes an introduction to financial statement analysis, definitions of different analysis methods, background on Chilime Hydropower, tables of financial ratios for Chilime, and descriptions of liquidity, solvency, profitability, and efficiency ratios.

2. ACKNOWLEDGEMENT
We would like to thank Mr. Rajesh Gupta who encourage us to complete this report and enhanced our
knowledge. We would like to thank Himalayan College of Management (HCM) for providing a heterogeneity
environment among our group members.
Similarly, we would also like to thank each of our heterogeneity friends who are from different background
remaining in a common platform MBA.

3. Table of Contents
Acknowledgement…………………………………………………………………..……..……..1
1. Introduction ………………………………………………………………………..……..4
2. Financial Statement Analysis …………………………………………………………….5
2.1 Methods for Financial Statement Analysis …………………………………………..5
3. Chilime Hydropower …………………………………………………………………….6
4. Ratio Analysis ……………………………………………………………………………7
4.1 Liquidity Ratios……………………………………………………………………….7
4.2 Solvency Ratio………………………………………………………………………..8
4.3 Profitability ratios………………………………………………………………….…9
4.4 Efficiency ratios……………………………………………………………………...10
5. Financial Analysis of Chilime Hydropower Company………………………………….12
5.1 Vertical Analysis of Balance Sheet…………………………………………………..13
5.2 Vertical Analysis of Income Statement………………………………………………14
6. Conclusion………………………………..………………………………………………16
7. Bibliography ………………………………..……………………………………………17

4. 1.0 Introduction
Nepal, having a tremendous potential of water resources, the development of Hydropower plants seems to be the
most viable and promising solution to meet the current energy crisis problem (B & B, 2012). About 1094 MW of
electricity is generated from existing large and small hydropower plants in Nepal which is not enough to meet the
peak demand of electricity (about 1407 MW) for its current consumers, let alone electrifying other areas (NEA,
2019). The Nepalese construction industry is in the developing phase, and small scale projects are carried out by
local companies. Still, for large-scale projects, foreign companies from China, India, Japan, Sweden are working
together with Nepalese contractors in Joint ventures. Usually, in medium-scale projects in Nepal, the international
companies are providing the consulting and local construction company act as the contractor. Nepal has drafted
an approach paper to graduate from the least developed country to a developing country by 2022 and aims to
become a middle-income country by 2030 (UNDPNEPAL, 2019). The most critical sectors of Nepal in the
construction industry is hydropower. The whole country’s economic growth depends on tourism and electricity
production. In the year 2014, the Nepalese government establishes an investment board in Nepal to boost capital
for financing large infrastructure projects and coordinate efforts to attract foreign direct investment (FDI).
Hydropower plays an essential sector in Nepal’s economic future development due to its scale of its potential and
attractive for foreign investment. Nepal has a 42000 Megawatts (MW) technical and economically feasible for a
generation of electricity, but only 2% is utilized, but the annual growth of power demand is over 10% (Agrawal,
2013). Having so much potential from the hydropower construction industry is failed to complete the project in
time. Nepal’s prosperity certainly depends on the utilization of its hydro resources because of economic
development in the region (Northern India, Bangladesh, and southern China) requires power, especially green
power. Nepal has been failed to complete the hydropower project on time and facing energy crises. With over
90% of the country’s total electricity generated by hydropower plants, Nepal is heavily dependent on hydro
resources to meet its energy demands where it plays a particularly important role in Nepal’s economic future
because of the scale of its potential. With approximately 1 GW of installed capacity, hydropower provides almost
all of Nepal’s domestic electricity generation on the grid and the economy is experiencing rising power demand,
with forecasts that it will more than double by 2025 compared to 2018, making clear the need for new capacity
(IHA, 2019). The public-owned Nepal electricity authority owns 50 percent of the country’s hydropower assets
and the other 50 percent is owned by independent power producers. NEA is relying heavily on the electricity
bought from India to keep the country free from power cuts and to bridge the gap, the Himalayan nation is
currently importing around 380MW of electricity from India through various cross-border transmission lines
where the country's peak electricity demand hovers at 1407 MW (NEA, 2019). Chilime hydropower is the only
one hydropower which has completed on time and remain one of the best example in the history of development
of hydropower in Nepal.

5. 2.0 Financial Statement Analysis
Financial statement analysis, also known as financial analysis, is the process of understanding the risk and
profitability of a company through the analysis of that company’s reported financial information. This information
includes annual and quarterly reports, such as income statements, balance sheets, and statements of cash flows.
All financial analysis relies on comparing or relating data in a way that enhances the utility or practical value of
the information.
2.1 Methods for Financial Statement Analysis
There are three methods for making these types of comparisons: vertical analysis, horizontal analysis and ratio
analysis.
➢ The vertical method is used on a single financial statement, such as an income statement. In a vertical
analysis, each item is expressed as a percentage of a significant total. This type of analysis is especially
helpful in analyzing income statement data.
➢ The horizontal method is a comparative, and presents the same company’s financial statements for one
or two successive periods in side-by-side columns. This comparative display shows dollar changes or
percentage changes in the statement items or totals across given periods of time. Horizontal analysis
detects changes in a company’s performance and highlights various other trends.
➢ Ratios are expressions of logical relationships between items in financial statements from a single period.
It is possible to calculate a number of ratios from the same set of financial statements. A ratio can show a
relationship between two items on the same financial statement or between two items on different financial
statements (e.g.balance sheet and income statement). The only limiting factor in choosing ratios is that the
items used to construct a ratio must have a logical relationship to one another.

6. 3.0 Chilime Hydropower
Chilime Hydropower company limited was incorporated in 1995. Chilime owns and operates 22.1 MW power
plants commissioned on August 25, 2003, and located in the Rasuwa district. The plant started its commercial
generation from 8th Bhadra 2060 (24th August 2003). The company sells bulk electricity to NEA at the long term
PPA price. Nepal Electricity Authority (NEA) holds majority ownership with 51% shareholding. Remaining 49%
shareholding is from general public including 10% equity ownership of local people.Chilime owns and operates
22.1 MW power plant commissioned on August 25, 2003 and located in Rasuwa district, 133 km north of capital
city Kathmandu. It sales bulk electricity to NEA at the long term PPA price. The annual energy generation from
the plant is about 150 GWh (Chilime, 2021).
Chilime has established following three subsidiaries:
1. Rasuwagadhi Hydropower Company Limited.
2. Madhya Bhotekoshi Jalavidhyut Company Limited.
3. Sanjen Jalavidhyut Company Limited.
4. Chilime Engineering and Services Company Limited.
Chilime, through its three subsidiaries, is developing four hydropower projects with aggregate capacity of 270.3
MW.

7. Table 3: Important Financial terms and ratios of Chilime hydropower
Financial terms 3/31/2077 3/31/2076
Sales of Electricity 1,140,739,306 1,170,432,144
Operating Profit/ (Loss) 566,825,626 653,155,523
Profit / (Loss) before Tax and Bonus 812,744,705 1,050,782,252
Profit/ (Loss) before Tax 792,184,571 1,028,265,237
Net Profit/ (Loss) For the Year attributable 688,674,490 760,309,660
Non-Current Assets 29,888,735,818 21,986,637,301
Total Current Assets 4,565,763,798 6,035,712,004
Total Assets 34,454,499,616 28,022,349,305
Total Equity & Liability 9,805,827,908 9,194,314,559
Total curent liabilities 1,550,893,617 1,048,871,954
Total Equity and Liabilities 34,454,499,616 28,022,349,305
Current ratio: 2.943 5.75
Working capital = Current asset-current liabilities 3,014,870,181 4,986,840,050
Debt to Asset ratio= 1 1
Gross profit rate=
0.496 0.558
Profit margin=
0.603 0.649
Return on assets=
0.0199 0.0271
Asset turnover=
0.0331 0.0417
Quick ratio= 3.423580015 1.135022232
Debt to Equity ratio= 0.158 0.114
Return on equity=
Average shareholders’ equity
Net income
17.24 14.09
Fixed asset turnover=
Fixed asset
Inventory 168.77 135.88
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 + 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 + 𝑝𝑟𝑒𝑝𝑎𝑖𝑑 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

8. 4.0 RATIO ANALYSIS
Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional efficiency, liquidity,
revenues, and profitability by analysing its financial records and statements (Cleartax, 2021). Analysts and
investors make use of the methods for ratio analysis to study and evaluate the fiscal wellbeing of businesses by
closely examining the historical performance and monetary statements (Cleartax, 2021). It also measures how
well a business racks up against other businesses functioning in the same sector. There are some categorizations
of ratio analysis which are as follows:
4.1 Liquidity Ratios
These ratios evaluate a business’ efficiency to settle its debts as and when they become due, with its revenues or
assets in the disposal. Liquidity ratios cover quick ratio, current ratio, and the working capital ratio.
4.1.1 The Current Ratio
The current ratio measures a company's ability to pay off its current liabilities (payable within one year) with its
total current assets such as cash, accounts receivable, and inventories. The higher the ratio, the better the
company's liquidity position:
Current Ratio =
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕𝒔
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
As shown in table no 3, the current ratio for the year 2076 is 5.76 and that of 2077 is 2.943 which indicates that
further investigation is prudent. Perhaps it is taking on too much debt, or its cash balance is being depleted: either
of which could be a solvency issue if it worsens. current ratio has been more volatile, jumping from 5.76 to 2.943
in a single year, which could indicate increased operational risk and likely drag on the company’s value.
4.1.2 Quick ratio
The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to
meet its short-term obligations with its most liquid assets. Since it indicates the company’s ability to instantly use
its near-cash assets (assets that can be converted quickly to cash) to pay down its current liabilities, it is also called
the acid test ratio.
The formula to calculate the quick ratio is:
QR=
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

9. As shown in table no 3, the current ratio for the year 2076 is 1.135 and that of 2077 is 3.42 which indicates that
company has quick ratio higher than 1 which instantly shows get rid of its current liabilities. For instance, a quick
ratio of 1.13 increased to 3.42 indicates that a company has 1.135 rupees and 3.42 rupees of liquid assets available
to cover each 1 rupees of its current liabilities.
4.1.3 Working capital ratio
The working capital ratio is commonly used to assess a company's financial performance. Low working capital
ratio values, near one or lower, can indicate serious financial problems with a company. The working capital ratio
reveals whether the company has enough short-term assets to pay off its short-term debt.
The working capital ratio measures a company's efficiency and the health of its short-term finances. The formula
to determine working capital is the company's current assets minus its current liabilities.
Working capital = Current asset-current liabilities
As shown in table no 3, the Working capital for the year 2076 is 4,986,840,050 and that of 2077 is 3,014,870,181
which indicates that there have been decrease in working fund. The company cannot cover its debts with its
current working capital. In this situation, a company is likely to have difficulty paying back its creditors. If a
company continues to have low working capital, or if it continues to decline over a period of time, it may have
serious financial trouble. The cause of the decrease in working capital could be a result of several different factors,
including decreasing sales revenues, mismanagement of inventory, or problems with accounts receivable.
4.2 Solvency Ratio
Solvency ratios are also referred to as the financial leverage ratios. These ratios will compare an organisation’s
level of debt with assets, earnings, and equity in order to determine the possibility of an organisation to stay in
operation over an extended period of time by settling all its short and long-term debts and by paying
coupon/interest regularly. Solvency ratios include interest coverage ratios, debt-asset ratios, and debt-equity
ratios.

10. 4.2.1 Debt with assets
The debt to asset ratio is a leverage ratio that measures the amount of total assets that are financed by creditors
instead of investors. In other words, it shows what percentage of assets is funded by borrowing compared with
the percentage of resources that are funded by the investors.
Debt to Asset ratio=
As shown in table no 3, the debt to asset ratio for the year 2076 is 1 and that of 2077 is 1 which indicates that
investors and creditors have an equal stake in the business assets. A lower debt to equity ratio usually implies a
more financially stable business.
4.2.2 Debt with Equity
The debt to equity ratio is a financial, liquidity ratio that compares a company’s total debt to total equity. The
debt to equity ratio shows the percentage of company financing that comes from creditors and investors. A higher
debt to equity ratio indicates that more creditor financing (bank loans) is used than investor financing
(shareholders). A lower debt to equity ratio usually implies a more financially stable business. Companies with a
higher debt to equity ratio are considered more risky to creditors and investors than companies with a lower ratio.
Unlike equity financing, debt must be repaid to the lender. Since debt financing also requires debt servicing or
regular interest payments, debt can be a far more expensive form of financing than equity financing. Companies
leveraging large amounts of debt might not be able to make the payments.
Debt to Equity ratio=
As shown in table no 3, the debt to asset ratio for the year 2076 is 0.114 and that of 2077 is 0.158 which indicates
that there is slightly increased in debt or loan which may be used in increasing the growth of the company.
4.3 Profitability ratios
Profitability ratios indicate how efficiently a business will be able to generate revenues and profits through its
operations. Profit margins, return on equity, return on assets, gross margin ratios, and return on capital employed
are good examples of profitability ratios.
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

11. 4.3.1 Return on Equity
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders'
equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE is considered the return
on net assets. ROE is considered a measure of a corporation's profitability in relation to stockholders’ equity.
Return on equity measures a company's profit as a percentage of the combined total worth of all ownership
interests in the company. For example, if a company's profit equals $10 million for a period, and the total value
of the shareholders' equity interests in the company equals $100 million, the return on equity would equal 10%
($10 million divided by $100 million).
Return on equity=
Average shareholders’ equity
Net income
As shown in table no 3, the Return on Equity for the year 2076 is 14.02 and that of 2077 is 17.29 which indicates
that there is slightly increased in ROE which shows sustainable growth and dividend growth.
4.3.2 Return on Assets (ROA)
Profitability is assessed relative to costs and expenses and analyzed in comparison to assets to see how effective
a company is deploying assets to generate sales and profits. The use of the term "return" in the ROA measure
customarily refers to net profit or net income—the value of earnings from sales after all costs, expenses, and
taxes. ROA is net income divided by total assets.
The more assets a company has amassed, the more sales and potential profits the company may generate.
As economies of scale help lower costs and improve margins, returns may grow at a faster rate than assets,
ultimately increasing ROA.
Return on Assets=
Net income
Total Assets
As shown in table no 3, the Return on Assets for the year 2076 is 0.02 and that of 2077 is 0.01 which indicates
that the company earning has been declining with respect to assets. Company efficiency has been decreasing
slightly and profitability has been decreased.
4.4 Efficiency ratios
The efficiency ratio is typically used to analyze how well a company uses its assets and liabilities internally.
An efficiency ratio can calculate the turnover of receivables, the repayment of liabilities, the quantity and usage
of equity, and the general use of inventory and machinery. This ratio can also be used to track and analyze the
performance of commercial and investment banks. Efficiency ratios are also called as the activity ratios. These

12. ratios determine the efficiency of a business by using its liabilities and assets to boost sales and optimize profits.
Inventory turnover and turnover ratios are examples of efficiency ratios.
2.4.1 Inventory turnover
Inventory turnover is the rate at which a company replaces inventory in a given period due to sales. Calculating
inventory turnover helps businesses make better pricing, manufacturing, marketing, and purchasing
decisions. Well-managed inventory levels show that a company's sales are at the desired level, and costs are
controlled. The inventory turnover ratio is a measure of how well a company generates sales from its inventory.
The higher the inventory turnover, the better, since high inventory turnover typically means a company is selling
goods quickly, and there is considerable demand for their products. Low inventory turnover, on the other hand,
would likely indicate weaker sales and declining demand for a company’s products.
Inventory turnover=
Sales
Inventory
As shown in table no 3, the Inventory turnover for the year 2076 is 7.23 and that of 2077 is 7.04 which indicates
that the company has slightly decreasing inventory turnover which means there has been less amount of electricity
produced or there has been user demand decreased in using electricity.
2.4.2 Fixed Asset Turnover
The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating performance. This
efficiency ratio compares net sales (income statement) to fixed assets (balance sheet) and measures a company's
ability to generate net sales from its fixed-asset investments, namely property, plant, and equipment (PP&E). The
fixed asset balance is used as a net of accumulated depreciation. A higher fixed asset turnover ratio indicates that
a company has effectively used investments in fixed assets to generate sales.
Fixed asset turnover=
Fixed asset
Inventory
As shown in table no 3, the Fixed asset turnover for the year 2076 is 135.88 and that of 2077 is 168.77 which
indicates that the company has efficiently used its investment to generate sales of electricity.
5.0 Financial Analysis of Chilime Hydropower Company
The Financial analysis of Chilime Hydropower Company has been conducted according to the data extracted
from annual report for the year 2076/77. The vertical analysis and the ratio analysis of the company is
postulated below.

13. 5.1 Vertical Analysis of Balance Sheet
Chilime Hydropower Company Ltd.
Vertical Analysis of Consolidated Statement of Financial Position
As at 31 Ashad 2077 (15 July 2020)
Table 1: Vertical analysis of Balance sheet of Chilime hydropower
Particulars 2077.03.31
(15.07.2020)
(Nrs.)
Percentage 2076.03.31
(16.07.2019)
(Nrs.)
Percentage
Assets
Non-Current Assets
Property, Plant and Equipment
Property, Plant and Equipment 1,777,406,562 5.16% 1,857,568,491 6.63%
Construction Assets – Subsidiaries 637,133,843 1.85% 665,034,682 2.37%
Capital Work in Progress 27,474,195,413 79.74% 19,464,034,129 69.46%
Total Non Current Assets 29,888,735,818 86.75% 21,986,637,301 78.46%
Current Assets
Inventory 177,018,969 0.51% 161,799,782 0.58%
Prepayments 5,370,907 0.02% 3,925,607 0.01%
Advances, Deposits and Other
Receivables
1,484,508,891 4.31% 2,494,512,406
8.90%
Trade Receivables 145,401,325 0.42% 126,272,426 0.45%
Investment in Term Deposits 2,372,896,813 6.89% 2,461,430,940 8.78%
Cash and Cash Equivalents 380,566,893 1.10% 787,770,843 2.81%
Total Current Assets 4,565,763,798 13.25% 6,035,712,004 21.54%
Total Assets 34,454,499,616 100.00% 28,022,349,305 100.00%
Equity and Liabilities
Equity
Share Capital 5,709,762,939 16.57% 4,758,135,782 16.98%

14. Retained Earnings 4,088,609,069 11.87% 4,436,178,777 15.83%
Corporate Social Responsibility
Fund
7,455,900 0.02% - 0.00%
Total Equity 9,805,827,908 28.46% 9,194,314,559 32.81%
Non Controlling Interest 7,708,526,884 22.37% 7,858,701,989 28.04%
Non Current Liabilities
Defined Benefit Obligation 103,392,217 0.30% 79,974,439 0.29%
Other Current Liabilities:
Deferred Tax Liabilities 151,355,330 0.44% 156,263,750 0.56%
Long Term Loans 15,134,503,659 43.93% 9,684,222,614 34.56%
Total Non Current Liabilities 15,389,251,206 44.67% 9,920,460,803 35.40%
Current Liabilities
Provisions 253,164,111 0.73% 247,088,583 0.88%
Trade and Other Payables 1,297,729,506 3.77% 801,783,371 2.86%
Total Current Liabilities 1,550,893,617 4.50% 1,048,871,954 3.74%
Total Equity and Liabilities 34,454,499,616 100.00% 28,022,349,305 100.00%
As per the above data, at the end of 2077 Company has 86.75% Percent noncurrent assets and 13.25% current
assets. In Noncurrent assets Capital work in progress is 79.74%, which mean company has under construction
project works which is going on. Whereas at the end of 2076, 78.46% noncurrent assets and 21.54% current
assets. In liability side, Long term loans is 44.67%, it mean company has borrowed loans to expand its business
which was 35.4% in 2076.

15. 5.2 Vertical Analysis of Income Statement
Chilime Hydropower Company Ltd.
Vertical Analysis of Consolidated Statement of Profit or Loss and Other Comprehensive Income
From 1st Shrawan 2076 to 31 st Ashad 2077 (From july 16 to july 15,2020)
Table 1: Vertical analysis of Income statement Chilime hydropower
Particulars
2077.03.31
(15.07.2020)
(Nrs.)
Percentage
2076.03.31
(16.07.2019)
(Nrs.)
Percentage
Income
Revenue from Sale of Electricity 1,140,739,306 82.3% 1,170,432,144 74.6%
Finance Income 161,160,270 11.6% 251,491,517 16.0%
Other Income 84,801,520 6.1% 146,135,212 9.3%
Total Income 1,386,701,096 100.0% 1,568,058,873 100.0%
Expenses
Operating Expenses -291,371,501 -21.0% -246,591,983 -15.7%
Administrative Expenses -207,279,074 -14.9% -191,917,779 -12.2%
Depreciation -75,305,816 -5.4% -78,766,858 -5.0%
Total Expenses -573,956,391 -41.4% -517,276,620 -33.0%
Profit / (Loss) before Tax and Bonus 812,744,705 58.6% 1,050,782,253 67.0%
Employee Bonus -20,556,251 -1.5% -22,517,014 -1.4%
Profit/ (Loss) before Tax 792,188,454 57.1% 1,028,265,239 65.6%
Less: Tax
Current Tax -201,197,285 -14.5% -203,539,837 -13.0%
Deferred Tax Income (Expense) 3,164,505 0.2% -35,978,213 -2.3%
Net Profit/ (Loss) For the Year
including Non-controlling Interest
594,155,674 42.8% 788,747,189 50.3%

16. (Net Profit)/ Loss For the Year
attributable to Non-controlling
Interest
94,518,816 6.8% -28,437,527 -1.8%
Net Profit/ (Loss) For the Year
attributable to CJCL
688,674,490 49.7% 760,309,662 48.5%
Other Comprehensive Income:
Actuarial Gain (Loss) on
remeasurements of defined benefit
plans
-8,719,570 -0.6% -13,027,930 -0.8%
Income Tax relating to items have not
be reclassified
1,743,914 0.1% 2,605,586 0.2%
Other Comprehensive Income for the
Year
-6,975,656 -0.5% -10,422,344 -0.7%
Total Profit / (Loss) and Other
Comprehensive Income
681,698,834 49.2% 749,887,318 47.8%
6. Conclusion
With the current data in hand, it is obvious that the company’s financial indicators have been in stress because of
increased costs and stagnant revenue. This might pose a different scenario in the investment decision by seeing
two year financial data. However, it should also be noted that hydropower invests in different projects which have
potential going forward.
In terms of Chilime Hydropower, its investments in 3 subsidiaries, which has a capacity of 270.3 MW might hold
a positive factor. However, investors should note that the project is profitable once the project comes into full
operation. Stating that, Sanjen Upper HEP is 88% completed and other two projects are 78% completed which
leaves Madhya Bhotekoshi at 60% completion. Taking a deep dive into individual company’s reports,
management clarifies to investors that the project completion might get delayed due to the ongoing situation in
the country. Chilime also might face delayed income from the subsidiaries due to various external uncertainties
in the way of developmental works.
Investors should also note that being Run-of-River projects, their efficiency relies highly on the flow of rivers.
And due to seasonality, the company would be highly efficient in the rainy season but less efficient in another
season in terms of electricity generation.

17. For now, investors should watch the profitability levels of the company closely since it reflects the management
strategies going forward which has been shown in ratios analysis. If we are the long term investor than we would
invest in chilime for sustainable profit in future by seeing our vertical and ratios analysis.
Bibliography
Agrawal, G. R. (2013). Project Management in Nepal. MK Publishers.
B, B., & B, B. (2012). On hydro-power development: Prospects and challenges. Retrieved from
www.himalayantimes.com.np.
Chilime. (2021, 08 14). http://www.chilime.com.np/about.html.
Cleartax. (2021). https://cleartax.in/g/terms/ratio-analysis.
IHA. (2019). Retrieved from https://www.hydropower.org/sites/default/files/publications-
docs/2019_hydropower_status_report.pdf.
NEA. (2019). 11th edition of NEA “Generation Directorate”. NEA.
UNDPNEPAL. (2019). Nepal braces for graduation from an LDC. Retrieved from
https://www.np.undp.org/content/nepal/en/home/projects.html.