Nepse Lists 130 Companies into "A" class category

Kathmandu, Feb 14

Nepal Stock Exchange (Nepse) has classified altogether 130 companies as ´A´ class companies at the country´s sole bourse. Nepse has been classifying listed companies since fiscal year 1996/97 as per the Securities Listing Bylaws 1996. At present there are 230 listed companies in Nepse. In the last fiscal year, 120 companies were categorized as class ´A´ companies.

According to the bylaws, only the companies having minimum paid-up capital of Rs 20 million and at least 1,000 ordinary shareholders can be categorized as class ´A´ companies. Likewise, they should have posted profit for three straight years. Also, the book value of their share should not be less than the paid-up value. Similarly, only those companies submitting their particulars of business and statements of income and expenditure of the concerned financial year within six months of the

completion of the fiscal year can be categorized as class ´A´ companies.

Like past year, banking and financial institutions have dominated the list of the ´A´ class companies. Twenty-five commercial banks, 58 development banks and 27 financial institutions have made it to the elite list. Similarly, 14 insurance companies and three hydropower companies have been categorized as class ´A´ companies. The list also includes one company each from Manufacturing and Production, Others and Hotel sectors.

Thou the categorization of the companies are done on the basis of analysis and performance of the company, some stock investors and analysts does not fully agree to this categorization method.