The legal status of the Kathmandu Upatyaka Khanepani Limited (KUKL), a state-owned body responsible for water supply and sanitary facilities, is at stake as it failed to submit annual reports to its reporting authority.
It has been almost nine years since the water body got registered at the Office of Company Registrar, but hasn’t submitted its annual audit reports to the authority, other than the one it did in its first year of inception.
As per the Company’s Act, any organization failing to submit annual audit reports continuously for three years will be scrapped automatically. However, the water body was given nine years because of its shareholding with the government.
However, KUKL’s General Manager Mahesh Prasad Bhattarai noted that the organisation has already prepared audit report of five years since he assumed office 16 months ago.
Bhattarai confirmed that the remaining years’ reports will also be prepared by the end of 2017 and submitted to the concerned authorities, to strengthen KUKL’s legal status.
It is noteworthy that the water body has been witnessing an annual loss of Rs 200 million, which is currently above Rs 400 million.