Nepal Reinsurance’s Valuation Completed — So Why Has the Annual General Meeting Still Not Been Held?

Kathmandu — Despite completing a valuation exercise that reportedly took nearly two years to finish instead of the usual one, Nepal Reinsurance Company has yet to hold its Annual General Meeting (AGM), with internal accounting issues said to be behind the delay.

According to sources within the company, senior management is currently focused on how to present unresolved accounting matters to shareholders and manage potential scrutiny once the AGM is eventually convened.

The company had reportedly completed valuation work for fiscal year 2023/24 following repeated follow-ups from the insurance regulator. However, concerns over shareholder criticism regarding unresolved financial discrepancies have allegedly contributed to continued delays in organizing the AGM.

Sources indicate that because the company did not submit its financial statements for FY 2023/24 on time, the Nepal Insurance Authority repeatedly called in the company’s CEO and departmental teams for discussions and progress updates regarding valuation and financial reporting.

Despite repeated regulatory pressure, the company is said to have attributed the delay to the external auditor’s review process. However, internal concerns reportedly remain over accounting irregularities that may attract attention once the financial statements are formally presented at the AGM.

According to individuals familiar with the process, areas under review during valuation reportedly included advances provided to insurance companies, receivables management, and questions surrounding transparency in administrative and management expenditures. These issues were cited as contributing factors behind the prolonged valuation process.

There are also internal allegations that company spending practices — including foreign travel, employee gifts, and advances worth millions of rupees — may face closer examination. It remains unclear whether all such advance expenditures were ultimately supported by documentation or completed as recorded.

Sources further claim that efforts to reconcile disputed accounting entries and organize unresolved financial matters have contributed to the unusual delay in holding the AGM. Auditors are also expected to issue observations that could bring additional attention to internal financial controls and reporting practices.

Internal tensions over the company’s financial management reportedly surfaced earlier between the CEO, management team, and board members. During that period, company CEO Surendra Poudel was also said to have remained absent from office for an extended period, which reportedly affected board operations. Sources claim he later returned to work after filing a police complaint, although details surrounding that episode remain unclear.

Some employees believe the unresolved issues could continue affecting future financial reporting and suggest that accounting challenges in the current fiscal year may prove even more significant than those seen in the previous one.