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Vol.
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Business News |
Even as talks about foreign management teams taking over management reins (from July, 2001) of Rastriya Banijya Bank (RBB) and Nepal Bank Ltd. (NBL) continue making rounds, an unofficial source has it that Nepal Rastra Bank (NRB) - the regulatory body of the country’s banking sector - has deployed two separate three-member committees to look after the management in the two banks in the interim period.
Among these Inspection and Monitoring Committees, the one to take charge of RBB is headed by Rajan Singh Bhandari and includes Rabin Sijapati and Maha Prasad Adhikari as members. NBL committee has Surendra Man Pradhan as its leader and Mukunda Chhetri and Lakshmi Niraula as members. The main purpose of the two committees is to check fraudulations and other kinds of irregularities. The boards in the two banks are said to be made answerable to the respective committees on all activities they undertake.
According to another source, NRB has short-listed four international audit and consultant firms from among the 50 that had applied for management contract of the two banks. These include audit firms Atherton & Anderson, and PriceWaterhouseCooper and consultant firm Ernest & Young. The last is also consultant to Zee TV’s quiz game show ‘Sawal Das Karore Ka’. Interestingly, KPMG Barnet, which had been handed over audit responsibilities of RBB and NBL and which had blown the lid on massive irregularities in the two banks, does not feature in NRB’s short-list, says the source.
FNCCI in cooperation with the Export Promotion Committee and local chambers, is going to organize regional industrial trade fairs in each of the five development regions during this winter. Such fairs were held at three places last year, and this year’s extensions to two other places is in view of the success of the last year’s fairs, says a press release from FNCCI.
Each fair is expected to attract 50,000 visitors. In one of the recently concluded Butwal Fair (Dec. 1-10) the visitor turnout is reported to have crossed 130 thousand while the spot transaction volume was about Rs. 12 million.
Hukam Pharmaceuticals Company has been awarded ISO 9002 certification for it’s best quality and manufacturing of pharmaceuticals products and has become the first pharmaceutical company of Nepal with ISO 9002. Nepal Ekarat Engineering and Shree Distillery (P) Ltd. have already received the coveted international certificate.
The International Organization for Standardization (ISO), established in 1947, is a worldwide federation of national standard bodies from some 130 countries.
Hukam Pharmaceuticals is a member of HC Dugar Group of Industries and has been manufacturing various medicines in the of forms tablets, capsules, suspensions, syrups, and dry syrups.
The company has also established a bulk drug manufacturing unit, which is the first of its kind in the country. The unit has started commercial production targeting export to India and overseas markets.
By bringing out strategy paper on financial sector reform program, His Majesty’s Government of Nepal has indicated its willingness to progressively withdraw itself from banking service business.
Schedule of Regional Fairs
Private sector banks and professionals have been repeatedly calling for such a step to ensure a level playing field for all the banks and non-banking financial institutions in the market. At present, HMG owns one commercial bank entirely and many other financial institutions partially.
The strategy paper promises more autonomy to Nepal Rastra Bank (the central bank) to make its monitoring activity more professionalized and effective and to enhance competition in the banking sector.
Under the newly announced strategy NRB is to focus on a 16-point reform agenda that include reforms in financial sector legislation, restructuring and privatization of Nepal Bank Ltd. and Restriya Banijya Bank, reform on auditing and accounting capabilities, restructuring Credit Information Bureau and establishment of Assets Reconstruction Company to improve loan recovery. The strategy also includes a plan for establishment of a credit rating agency.
Though some may think that Nepal already has too many finance companies, one new finance company, Cosmic Merchant Bank and Finance Ltd. (CMB) started operation in Kathmandu since November 20, 2000.
Promoted by a team of business persons and professionals including Capt. Rabindra Prasad Pradhan who also heads Cosmic Air, Jomsom Mountain Resort and AVCO International (the dealer of Hyundai vehicles), the new finance company has already done a business of twenty million rupees during the very first two weeks of operation, according to Director and General Manager of the company Mohan K. Sharma.
CMB has an authorised capital of Rs. 120 million and issued capital of Rs. 60 million of which Rs. 36 million is already paid up by the promoters. Another Rs. 24 million is planned to be raised from the public issue of shares in the near future.
| Gorkha Brewery (P) Ltd.
(GBPL) has been presented with the prestigious "Carlsberg Golden Words
Award-2000" for being adjudged the best among the breweries across the world outside
Denmark that brew Carlsberg range of beer brands. Being presented since 1995, the award was received by breweries in Finland, Ireland, Cyprus and Malaysia in previous years. This year’s award was handed over to Mohan Gopal Khetan,Chairman of GBPL, at Denmark by Carlsberg A/S’s CEO Flemming Lindelov. Carlsberg and Tuborg brand produced by GBPL, together hold about 60% market share in Nepal. Carlsberg A/S and Khetan Group each hold 49% shares in GBPL. |
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Visiting Business Person |
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| Toyooki Tanaka, MD of Sony
Singapore, was recently in Kathmandu to observe what is happening in the Nepali market
with respect to Sony products. "I visited many outlets and feel happy about how the
products are selling, but at the same time I feel that we have to work harder to create
more awareness about the brand", he commented before returning home. Explaining why Sony was not being marketed aggressively in Nepal, Tanaka said, the Nepali market for Sony has not yet reached the stage to demand aggressive marketing. "Therefore, Mantra Nepal, our Nepali dealer, at present, is focusing in creating awareness about the brand and I’m happy about that", Tanaka said. Being placed at a premium category and thus carrying a high price tag, Sony brand products are out of reach for most of Nepalis. But Tanaka says that Sony is not going to change its image and so will remain a premium brand also in the future. |
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Though the revenue of National Finance Company Limited (NFCL) in 1999/2000 was lower by 0.21% than in 1998/99, its recently concluded AGM has approved the Board’s recommendation to increase the dividend to 28% of the paid up share value (compared to 24% previous year). This was possible because the company’s operating expenses decreased by 5.87% over that of the previous year, according to report of the Board of Directors of the company.
Moreover, the company rewarded only 2% to the members of the Board of Directors instead of 5% that was approved by the previous AGM.
Highlights of Financial Performance of NFCL
(Rs. in 000)
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