Regd. No. 1300/067/068 PAN:600232009 Hydroelectricity Investment And Development Company Ltd. .-4. (Ref No.): Date: 5 March 2019 To, The World Bank Nepal Office Durbarmarga, Kathmandu Re: Submission of Audited Project Account: Kabeli-A HEP (IDA5338-NP), of FY 2017/18 (2074/75) Dear Sir, As per the reporting requirement of project- Kabeli-A HEP (IDA5338-NP), we are pleased to submit the audited Project Account of FY 2017/18 (2074/75) for your necessary arrangement along with this letter. Thank you. Sincer ly Yo s, Chha i aj Pokhrel Chief Executive Officer CC: 1. Ministry of Finance, international Economic Cooperation Coordination Division. 2. Ministry of Energy, Water Resource and Irrigation. 3. Financial Comptroller General Office Hydroelectricity Investment and Development Company Kabeli-A Hydroelectric Project (IDA 5338-NP) Audited Financial Reports For FY 2074/75 (2017/18) (Period between 16 July, 2017 & 16 July, 2018) Hattisar, Kathmandu Chartered Accountants Indepen dent Auditors' Report To the Jalbidhyut Lagani Tatha Bikas Company Ltd. 1. We have audited the accompanying Project Financial Statements including Statement Designated Account of "Kabeli-A Hydroelectric Project" ("the Project") financed by IDA 5338-NP as at 16 July, 2018 (32nd Ashad, 2075) for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements 2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in Nepal, including the Nepali Accounting Standards and as per the Companies Act, 2063.The entity is also responsible for the maintenance of adequate accounting records for safeguarding of the assets of the entity and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 3. Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted my audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of Nepal. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the project financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the project financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the project financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting s estimates made by management, as well as evaluating the overall presentation of t s project financial statements. Head Office: Branch Office: Branch Office: 3rd Floor, Pashupati Vision Plaza, Pinglasthan-8, Birendra Campus Road, Bharatpur-10, Shivapath, Siddharthan Gaushala, Kathmandu Chitwan (Near Kanchhi Bazar), Bhai a Tel: +977-1-4464127 Tel: +977-56-534080 Tel: +977-71-525584 E-mail: info@nars.com.np I Web: www.nars.com.np 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 6. In our opinion, the project financial statement including statement of Designated account, in all material respects, give a true and fair view of the financial position of the "Kabeli-A Hydroelectric Project" as of 16 July, 2018 (32nd Ashad, 2075), and of the results of its operations and its cash flows for the year then ended is in accordance with accounting principles generally accepted in Nepal, including the Nepali Accounting Standards. We also report that funds provided under by IDA 5338-NP have been utilized for intended purpose. For, N. A. R. S. Associates Chartered Accountants As Place Kathmandu CA. Rajan Adhik nu Date 15 February, 2019 Managing Partner Managing Partner Hydroelectricity Investment and Development Company Kabeli-A Hydroelectric Project (IDA 5338-NP) Audited Financial Reports (IUFRs) For FY 2074/75 (2017/18) (Period between 16 July, 2017 & 16 July, 2018) Contents Report 1 Sources and Uses of Funds Report 2 Designated Account Reconciliation Statement Report 3 Statement of Expenditure Note 1 DA Replenishable and GoN Payable/ KEL Receivable Fund Statement Note 2 Disbursement Report $���`�� � � �"� 'Т � ���, �,' � � ы ` � P:j ��6� � \ \ � .� � t�� а � д о �мvооо о о т шсоо v ;�,с cj гр� а о оооооо о о ia ° °p �е � �F.% о � га t z �_�NVCO; � ' � о ��v Q � ор v� V Ov v � о NNN и Л°^ yt �� ° �� 'о р О� О N б) �_ ц) 7 � � � N О �- О� N 1� 1� � � д' V � 1� О /� У Q О Ф й � м� rn� р0 � о > Ol 6) б) б� 4 � vV а т ,� � c�i ui вi Г м ri м й °rn й й �' Q Q о т cocv а v � ° ммм � с� ° N � � --иr � � ° Е м � � т � V ' 6 U � � L Й ср ср О � � U о I� М V О О о о о Q- й р О О О О о О О р = С о �ciйcovao ��v � _ � о СО V и О д' V � . � N N N О) о V Q] и 1� О� с- � N и и аО N С � � ° О О р и О д' м СО и и r r р� N о � о v м и со м м �м,� м м со ° 5 го _ о о� .- � и со м м � оо Г о °' (� а о ric�.-riмo о о ��N и ° � Е� N N N м � о7 oJ W n _ U 1] �' � о N r �р и и v(О V Ci V f0 (0 С О У о О N С а � а N U� N fa U .. � �р и т г� т г с } } °с' 3 и � га а� о 'й t сi°i й и и и LL � � `� 7 О � О о О о о О Й О О О О с � `7 � °о о о о о о 4 � ' о о о о т о� • Ё� J со cci о' о о о о Г оо и и о о о о о Г °о оо_ °о о 'с °' /� � ш о и и о о о о а� й rn пi ri О �` о °о �� т cti со cv й й й °�O и rn и и С7 Q � _ о ои � у о ии� U �6 о с Е ' а N > р и с*j М N N N N � N N N N LL у � � С � со �' ia � CO со со со N сNд ry i� � г�'�t N� � Е У� м ° и гv с� с� ° ш � й м и -� °LL Е м � ш� и �� со Е а о с с- сл � а ° V �ri д ( С] 0 ti r°6 V rn со v � о о r � Г Q �о 0 Ш и N 7 О N и= j, О v � О N д� v ° й Г N Q д �� С с о� а �� о г с v о N N� О о о О О � а U� у и у с и г г � оо Е г� к.ц й й и' ш а� c�i т Ш� о °' о г м Q О �о о �° � г а; � т- =и д У �с� а � й 3 � - о � х д й о � _ У а с ° с� _ о с гСо со� ° т с V � Q й � и у _ � ы т ° Z � Q N � г� S � � � У °' � ¢ Е о с й О ' ° 3 С `-° °' °' �2Сг Q 7 �' �р ?� С � ° с � Ш �. т О д !� Ш рΡ3 Ш с �) С Ш l9 (0 U� с �р С О Q О 3 С д U О С U fC ° О. � и U о ry 'L Q� о. � о ш о д � �Q�coi � с ш о0 о F Е Е- ы й С д-а ' Q а о с й с� � и ш Е o+v t тй ш vi � 0 й ш� ш й и � р ° ш>, ш С й й ш ш ш � о= а � w�. о с С д 9 � � Z С + �� С д и � '' С 'З ° V с°�i О ш С� т ш в � с°i Ш д-� и U- � С �� Е С� � °' й с а с°_i °о_ о У и Ш ш >, •? о т Е'° Q° ш и о и о� оУ с� и о- LL с о ат О ш - oZ а � т й� с• о. г �- �_ у °'�ii о� -ио � а й шаУ шг ° а ас � � � ш д и с д � т> °U ° `°'cg -о � ш t Е х J - С �° L С И� С�� С LL С � �! Ш И�� Ш Ш Ш о U ° т .. о о�°-' ° т°�i � с С� U � С У Е� Q �` ш �д г г��� � � о ш а ш °С' � о т� о о� L �t, �°Pueщfi� �' о ��С�7��а � � � О�ь-F=-�� Z; �F-�r _ � ` а � с� м v и со � '� ^ ?� а а а 00 � , � - t � ,'� �, • , С�, N р � и о � а ы ш с � *' а - � и L � � о R t1 Q � С Ш � о Ш .U �+ � У О - � С. � � � д _ L - i � О U � � х ооо �; � �; ооо � � �� га ' � оо � -о s ш с.� L � N N N � U у со�0 со^С сог\О о > Q '� м м ri у � � Е � � � v � о � о о о � � �' ооо с� � w � � ' � о,�.�, со ао со с N т с� с� с� � '� о о о 00 г`а � с� i сй � '� а� � .- � Г � с � г� сf°i } й � с и ге z с� С рр LL ,н, С а у Гр О � � г � оо у N й °ооо и й т� м в� 7 J 00 О ' t fl. У� и г� -� � сд о о о р � � � ооо (� а � а � � � о CO � °- й и и и .� _ � и и и LL с •ы+ fC 1� O�S ; N N N N и� у О � а+ � у .о •о су N � LL м L а � � � Е �ri � , � v и � � � U °� � О . д 7 N С м � � О v� у N� U д � О �� � � л � i° � а ,;, � � О г � � Z = � � � а fa о О �- а ' _ � °O• Е L v д rn О �' N гС � U R � `у �, м Q Е Q У р а •а о� р � о О т t С . р �= ш а и 3 и � г к_ � о Е � с о о � � а о � � о � о а� ,о -р С i � .-, С а' f6 N fC с6 � � � � S3 � N v_ ` о '� И р t,' � U � д � R Q Q у р> а '� � � � � Ш Ш гл � � о С � � � т � •- а о_ с � о� о Q-о C6 � Q О V д и � U и U L� р Q' Ф tл J`� Q д у о с �° Ш � -а с � У � f2 с0 � с� Ш.4; -� �.+ � С1 �р LL С О� � О � ор ,� `-° _ °' с `ot'"р'еш � о го `ш �4 rn и ti �� � и р_ т й� •И О N �� '_. �� ' •U со � � с U д Q. L � U U И� ш р � с �g ��� о C�UF,� � J � �`�' : ii ш о � � д Q- -�о о аиi ° У� о" ,4' � OQI-� U а; и \ о s � Q � сч м v ui г 1- `� . �� '✓�'W����� �/�`.. r, ы ГЛ ч� � \ �� Т, ��уΡ � м � ы о о о о оо �. � U Рр�, а о ��>, ._�,�� ` ° г " � °' � � � ��° * �гСа` о. с у т е� � . � с Ш 7 � � r 1� 1� 1� У О т � ia � й о о о о о Si L � � 7 у г� М м М м м Q Q � а � а V д � а ° с � � � 1� h С° U � � а `6 � х � г� ш � о и и и �л м ''? `п м м м о о`�' о° о о ° � Е� со - � о о о � о о °о о о - С7 °� ш c�i с� й й й S �° ш �р .,, оио_ �ю оо w оо �' и U� ° с � � � � С � т 7 г,л � � и со ш � �� V ы� г�� М о р М м Т(6 с Q � м � ,- г 7� ,о � и г {6 г � т о N о_ и и и и и " и о �д ш ш � о й о oi w °' N N N г� N v � n ° � о оо �( v� N �о, °о о °. � ��о т w v °�v � � � / J( , г о + l с ы т r v! � ьn цn ы� l7 � я- м м � ш � � м м м м м `'� � а г`а i i о о о о о "' � го � i- М � V�' а ��V � У й � v v и С � с о о °о о о о о о о й = ' ° °о р° °о о � с coi о о о а � Q о о о оо о о г N '6 а и � р О О О д р О О ' м с0 ° ы oN о �,Nq СО СО Ш . м г со са ш а^ Q� � � � У.> т ° а � " о о о � N о о о т к � LL о Q о о о °о °о � Ш � t� о о о о о .. .о ,., > ы г_ о оо о о о � О д И �6 7 �� � c�j N N N . U l0 3!: fC О � iП и и f� 1� U V ° ��р J N I� � N N N L с N N у У U а � N N N N гc°i о с ш ш лк U � 2 Ш �р U а � Q о л N г� С д N R �с и - R � L1 О ° ° � ы Е т� у •' о � Ш У Q гл и � и �° ° С у [6 Т Ш � о т � с ° хп .а ° � ы Ш - м г Е � �о �о .� ° и С ° и �°• о n 1- l О �е 2 V Ш r о � � � У � � (4 f1 Ш 7 J 0 � о О Q � С О 7� �>_ С � О- . � U U л -� ` �- = Q - t'6 U � с и � �O- т -° � о о ш о0 ? и ш ° и � Е ш М ° > С О О �и с7 ¢ z с� С� и и С ° � �g�. ,г г!G'� Ш Е о ° ° о�� ..�--. �•.��,�_. � У N О� � ��� � ���� �е ш � � а О -� i ��' ��� с Q � � %3- • � � r � � � �� у.� с � F- ш о �� i� р р Q ��,з,.�.. ш Q� д а Q ,(,. 0 р Z Q' а � U (� U� а Audited Financial Reports Note I Kabeli-A Hydroelectric Project (IDA 5338-NP) DA Replenishable and GoN Payable/ KEL Receivable Fund Statement FY 2017/18 (2074/75) Period: between 16 July, 2017 & 16 July, 2018 Designated Account (DA) Funds Replenishable Amount in NPR Particulars Cumulative as of FY 2017118 (20741 5 Cumulative to Date Last FY : 2016/17 Year to Date A Funds Reimbursed from DA 262,752,000.00 129,198,244.00 391,950,244.00 B Direct Payment from DA C Less: Documented expenditures (262,752,000.00) 262,752,000,00) Net DA Funds Ranlpnishahle B-C (133,553,756.00) 129,190 OAA nO Amount in NPR Particulars Cumulative as of Y20117118 (2074/75 Cumulative to Date Last FY : 2016117 Year to Date Pa, able to GoN Add: DA + Direct Payments (262,752,000.00) (743,087,148 00) Add or Less . Foreign Exchange Gain or Loss (1,071,000.00) (32,203,830 72) (33,274 8'10 72)l Outstanding Principal (263,823,000.00) (512.538,W0 -1 177r I Add (83,55600) (11,306,482.35) (11,390, 38.35)1 Less: Repayment Net Interest Payable (83,556.00) (11,306,482.35) (111,390,038.35) I Toal Payble tp GoN (Principal + Interest) (263,906,556.00)1 (523,845,461,07)1 (787,752,017.07)1 I Receivable from KEL Principal Add or Less * Foreign Exchange Gain or Loss 1,071,000,00 32,203,830.72 33,274,830.72 P Add: DA + Direct Payments 262,752,000.00 480,335,148M 743,087,148.00 I Outstanding Principal 263,823,000.00 512,538,978.72 776,361,978.72 dd UA + L" rec' ' ass Repay ment dd ess F -r 'g n Exchange G.,n , Loss nterest - t-t tAddd 83,556.00 11,306,,4 2 35 11,390,038 35 e R a - (2,130,945.03) (2,130,945,03) t diny Pr'n-'p-M e nt Net Interest RRec_eeivable 83,556.00 9,175,537.32 9,259,093 32 st c able rLP. me 7- JToal Receivable from KEL (P incipal + Interest) 263,906,556.00 521,714,516 4 "1 785,621,072.04 Al Dinesh Kumar Surya Prasad Gauta e pak Poudel 4y ru ukti odh hrel an dhikar R mesh Pane bi Raj Pokkhrelcut'v Ghimire Financial Comptroller C er Account Officer Senior Account Neupane Ch ef Executive Officer DGM (Finance) Officer Secretary- MoEWRI General and'), � 0 v о�о с°�Ч и о; г� ~ .� й aNi й �. � ш v� . с м с� и � 00 г � о .- м �t Е а N � о о о д .а о о о О г й °о � � г �С � О г г ° С � оо N й � ш,� о и + и м ао � L„- ° � � � м о ,с О Q � N v � " ш > �.�+ � � � v � _ N � к ш � � °о °о с� г L � �, v v с� � �, о о С � � у N ц°) 00 00 00 � � +о+ Ои0 Ои0 � �j м м о г г р ш и °о °о °о о °о v v V О г г С > " й м а~о �р -р � м о а �" Q N О М ° О г N `с•,° v � ссъ � оо а м � � с°i м � ° с и м Z � Q и г� � �' .�. г 'D �. �. о и � � � •✓ а С а т � д о� г г И У т ' � О ° . а = N N LT � ш � л ш V � г � � � � м V L г tD д 7 О г N О Й_ } у _ О О О "О О ш� й � О 00 Оо0 _ � � � О fD СО а � О г г 3 .ь.+ д. и г СО • -� о. с и и о � � о ш о с� v" � � _ � У а � � �" � Q �О s ° � � 7 � О и v шQ � т � `о_ + L м Q_ с� L L � у v U } ар � = '� �r а и о и ii с� с � а г° �" Q о � Q `� о о � �ц � и 'с w � �, о � � а rr и � � со > rn � � с � с � с_ � � ° О ii ° т � � � +-' +' �с С � Z г� Q_ f�C � Q- р 7 'п и U � >- Е у° � �Q ammU �р• �P�i S , �� f� � �' � $ � �. �� г� 2/25/2019 banking. nrb, org. np/SCRI P1 S/ledgerShowDetails.isp Nepal Rastra Bank Banking Office, Thapathali (Acconnt Statement) Client Code 1206187 Client Name JALVIDI-IYATLAGAN1 & BIKAS COMPANY LT A/c No : 1206187/001.004 840 A/c Name: SPECIAL DEBT AW Currency USD Date Value Date Ref./Cliq. Description Dr/Cr FC Amount NPR Exch. Rate Balance 2018/03/18 2018/03/18 NIC ASIA 13ANK LTD. CR 19,382.80 2,008,058.08 103.60 19,382.80 2018/04/24 2018/04/24 51RMT/94,74/75 /RF13/A('559911 CR 1,210.288.00 128,375,248.16 106.07 1,229,670.80 2018/04/26 2018/04/20 ORMT PA.SA. JAML 074/75, Cl IA.NO. 1) I - 1,2 10.288.00 -129,198,244.00 106.75 19,382.90 693 *This statement is for vie% ing pffl'pow only and can not be ClaIMCd IS Althenticated statement. Co. L& http://banking.nrb.org.np/SCRIPTS/ledgerShowDetails.jsp