Lack of these audited financial reports is one of the reasons that has prevented the company from renewing its operating license and distributing dividends to share holders. [break]
Beema Sansthan has not audited its balance sheets since the fiscal year 2003/04 due to frequent change in top level staff and frequent protests by employees.
“But now we have updated financial reports of all these years and will have them audited soon,” Omkar Nidhi Tiwari, acting administrator of the state-owned company, told a gathering organized to mark the 45th anniversary of the company.
“Once the financial reports are approved, annual general meeting (AGM) of three years from 2003/04 to 2005/06 will be held within mid-April this year,” he said. “The AGM of another four years till 2009/10 will be held within mid-April 2013.”
As per the Insurance Act, all insurance companies must have their balance sheets audited by an authorized chartered accountant within 10 months of completion of every fiscal year. If not, the Insurance Board may suspend business transaction of the company or may even seize operating license.
However, Beema Sansthan has been able to evade government actions because of its status as a state-owned company.
But its failure to audit its financial reports has tremendously affected its business as this is one of the reasons why the Insurance Board, the insurance sector regulator, has refused to renew its operating license since 2004.
“Because of inability to renew license, the company has not been able to secure business deals from various organizations,” Jayendra Lal Shrestha, president of Free Employees Council, one of the four trade unions at Beema Sansthan, said, indicating that failure to renew the license is being interpreted by many as operation of illegal businesses.
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