Everest Insurance due to hold AGM since FY 68/69; paid up capital remain Rs 10.12 cr; regulator minimum requirement is Rs 25 cr

Everest Insurance Company Limited (EIC)  has not been able to hold Annual General Meeting (AGM) for past four fiscal years. AGM for fiscal year 2068/69, 2069/70, 2070/71 and 2071/72 has not been held by the company. Insurance Board has the authority to fine insurance companies who delay their AGMs. The board can even cancel or refuse to renew the license of the companies. But in the history of the board, it has never taken such action against any insurance companies. The paid up capital of the company stands at Rs 10.12 crore. Paid of capital requirement set by Beema Samiti for non-life insurance company is Rs 25 crore. Its reserve by the third quarter of the ongoing  fiscal year has reached Rs 15.42 crore, up from Rs 11.29 in the previous fiscal year. Pradip Mohan Dhaubhadel, CEO of Everest Insurance Limited said, “ the financial reports of the FY 2068/69 and 2069/70 are in a finalization process and we are also on the verge of appointing auditor for FY 2070/71 and 2071/72.” We have a plan to hold AGM for at least 2 fiscal years (2068/69 and 2069/70) by Ashad, 2073, he added. Everest Insurance has 100 percent public shares. The public shareholder ratio was made 100 percent by the Annual General Meeting (AGM), added Mr. Dhaubhadel. At present Mr. Surendra Silwal is the Chairman of Board of Directors of Everest Insurance. The insurance company had also proposed 1:1.5 right shares in Fiscal Year 2070/71 which is yet to be approved by the AGM/SGM. The insurance company had a net profit of Rs 1.15 crore in the third quarter of the last fiscal year and its reserve fund reached to Rs 15.41 crore. Out of all non-life insurance companies, Everest Insurance Limited (EIC) has the lowest paid up capital, insurance fund, net profit and net premium, but it has second highest net worth per share after Rastriya Beema Company Limited (RBCL). Its net worth per share stands at Rs. 300.69. Everest Insurance has the highest P/E ratio of 93.96 times. The last trading price of Everest Insurance stands at Rs. 1498 as on May 29, 2016.