Protect shareholders to sustain companies: AG

Kathmandu, August 2:

Nepal’s Auditor General Gehendra Nath Adhikari, while addressing a function of National Best Presented Accounts Award-2005, has stressed on the need to protect the interest of common shareholders for sustainability of companies.

Adhikari said that companies should disclose information to investors in time, which will help promoters to prevent companies from various snags. In this context, the role of the accounting sector is crucial as it is facing competition after Nepal becoming a member of World Trade Organisation (WTO).

Therefore, the sector should be ready to cope with emerging challenges making the environment more competitive, Adhikari said. Adhikari also gave away BPA awards to five categories, given on the basis of best financial statements submitted by institutions from the banking sector, non-banking sector, financial sector, manufacturing, hospitality, health and transportation sectors.

The evaluation for BPA awards was done as per the ‘norms’ set by South Asia Federation of Accountants, an apex body of SAARC, according to ICAN. Under the banking sector category, Laxmi Bank Ltd secured first place while the Standard Chartered Bank Nepal Ltd secured the second position, as per the financial statements submitted by these companies to ICAN.

Similarly, in the non-banking financial sector category, Ace Finance Company Ltd secured first and Development Credit Bank Ltd secured second award.

Similarly, other awardees of the financial sector (insurance company), manufacturing and hospitality; health and transportation; were Everest Insurance Company Ltd, Butwal Power Company Ltd and Soaltee Hotel Ltd, respectively.

Newly elected president of ICAN, Binod Rajbhandary promised that the institute would further revitalise the accounting sector to make it more sophisticated in days ahead in the context of global competition.

Therefore, collective support from all concerned is required to achieve the goal, he said.

He also announced that ICAN would set up institutional scholarships for students of chartered accountants. The institute would also expedite research activities in future, he promised at the gathering of over 200 participants.

Outgoing president of ICAN Narayan Bajaj expressed his opined that Nepal’s accounting sector is yet to mature to face potential challenges, as competition is getting tough day by day.