Preparing to issue shares at a price of Rs 300 per share
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
Nepal Electricity Authority has got 'Double A (AA) Plus' rating this year as well. Ikra Nepal Limited has given the rating of 'Ikra NP Double A Plus' level by rating the authority. Along with this, the authority has received double A plus rating for the third time in a row.
The rating is done by analyzing the financial condition of the authority, assets, commercial and financial risk analysis, managerial ability, internal and external environmental elements that affect operational effectiveness.
Double A plus rating has a high capacity to meet its financial and financial obligations on time. Financial transactions with institutions that have a double A Plus rating have low loan default risk . Credit rating is used to assess the credit quality of an individual or an organization and express an opinion. In this, an opinion is given as a simple and understandable indicator of the risk inherent in the ability of the organization to pay its debt obligations. Kulman Ghising, the executive director of the
authority, said that the authority has been able to obtain double A plus rating continuously for three years and this shows that the financial health of the organization is good and the ability to repay the debt. In addition, Ghising says that the authority is able to discharge its financial and financial obligations with confidence.
'The rating of the organization, which is an important criterion for issuing shares to the general public, has been completed . We have evaluated the real assets of the organization. With the approval from the government, the share issue process can be carried forward,' he said, 'we have planned to invest the money collected from the share issue in the construction of large hydropower projects.'
Ghising said that the plan is to complete the construction of electricity generation projects and the system improvement and expansion necessary for the improvement and expansion of the system to make the electricity supply more reliable, quality and safe.
The paid-up capital of the authority is about 3 billion rupees and the premium is increased to a maximum of 20 percent. It has been proposed to issue shares at a price of 300 rupees per share including premium. The annual income of the authority is 1 trillion 16 billion and the assets are more than 7 trillion rupees.
The authority has been established under the full ownership of the government to make power generation, transmission and distribution efficient, reliable and accessible. In addition to generating, transmitting and distributing electricity within the country, the authority is doing domestic and cross-border electricity trading.
The government has been investing in the authority through annual budget allocation, investment in shares (cash or interest/debt capitalization) and other necessary funds/operations to implement the electricity development program. The authority is wholly owned by the government, has a monopoly on electricity transmission, distribution and purchase and sale of electricity within the country and abroad and is a strategic organization of the government.
The authority has signed a long-term power purchase agreement (PPA) of nearly 11,000 megawatts with hydropower projects to be built by domestic and foreign investors. The results of the rating show that there is no investment risk as the authority has a high level of financial capacity to pay for such projects. To reduce technical and non-technical electricity leakage, increase access to maximum customers, reduce financial expenses, increase revenue, improve institutional governance to expand transmission and distribution lines and substations, the authority has achieved great success in making profits.
fiscal year In 072/73 there was a net loss of 8 billion 89 crore rupees while in 073/74 it was making a net profit of 1 billion 50 crore rupees and Pradhiran started the history of profit . The authority earned a profit of 14.46 billion rupees in the year 080/81. In 072/73, the authority had a cumulative loss of 34 billion 61 million rupees and has now reached a cumulative profit of 47 billion 41 million rupees. In the last financial year, the authority has estimated the electricity leakage of the system to be about 12.73 It was reduced to a percentage. In the financial year 072/73, there was 25.78 percent electricity leakage from the distribution and transmission system.
