Investors of Prime life insurance to get nil return this year too! While its price is increasing mysteriously

Kathmandu January 18- Prime life insurance that was unable to distribute any return to its shareholders since last three fiscal years due to action taken against by insurance committee, will not be able to give any return to its shareholders in this fiscal year too.

Insurance committee had recommended action against then CEO Resta Jha for misuse of the company's financial resources and suggested to take corrective measure in balance sheets of the company which had serious errors. Instead of correcting it, Rajendra Khetan, General Manager of the company pressurized then finance Minister Dr. Ramsaran Mahat to remove Chairman of Insurance Committee Prof. Dr. FatteBahadur K.C. Then Finance Minister Dr. Mahat tried to remove Dr. K.C from his post through adopting various tricks but after a series of failure, he backed out.

Then CEO Resta Jha of Prime life caused serious harm in companies finances by hysterical expenses in advertisement, travelling, agency commission, employee expenses, fuel cost etc. titles. His actions were obscure in whole insurance sector due to which employees of the company also started lobbying against him. In order to remove him from the post of CEO, they submitted complain against him in Insurance committee.

It's been long since the company had submitted balance sheets of two fiscal years for approval but according to higher rank officials of the insurance committee, financial report of the company is out of range from insurance committee due to which insurance committee had asked the company to make amendments in the financial report which has been neglected by the company.

According to a higher rank official of insurance committee, their balance sheets have serious errors, if corrective measure is not taken, then it will not be approved. According to him, this year also, company is playing with investors sentiments which will not be tolerated and additional step will be taken. Although he didn't clarify the additional steps or errors in balance sheet.

Meanwhile, newly appointed CEO Manoj Bhattarai of prime life has shown confidence that the financial reports of 2 years prior to 2071/72 will be approved as they are. He added that he will be going insurance committee for the approval of financial report of previous years. He also stated that after the approval, they will be conducting AGM of three years and distribute due return to the investors.

Why the price of the stock is increasing in the market?

While investors have not got any return from prime life for last three years, its share price is increasing in higher rate. On Sunday, stock of prime life was traded at Rs. 1660. Share price of the company is sky rocketing in last weeks in compare to November 29 which was Rs. 1173. As per share market analyst, few big investors and company management is manipulating the price. According to them, they are trying to uphold the price based on the information that the company is providing bonus share of last three years in lump sum.  A investors who has done good analysis of insurance companies was in awe seeing market growth of the stock as the financial report of the company for last two years is in bad condition.