Nepal Insurance Company Limited, which is currently operating at a loss of NPR 1.37 billion, has paid NPR 1.26 billion to the government as advance tax.

According to the company’s first-quarter report of FY 2082/83, the amount of advance tax paid increased by NPR 1.24 billion compared to last year. However, the company has not disclosed the reason for such a large advance tax payment in the report.

Last fiscal year, the company had paid only NPR 21.3 million in advance tax.

Gen Z Movement Claim Settlements Underway

Following the Gen Z protest incidents on Bhadra 24, insurance claim payments have been coming in.
According to the Insurance Authority, Nepal Insurance Company has received 111 claims totaling NPR 462.9 million related to the Gen Z movement.
However, the company has paid only NPR 115.7 million so far.

Despite the pending claim settlements, the company chose to pay a huge amount in advance tax, raising questions among investors and stakeholders.

Financial Performance Breakdown

The quarterly report shows:

• Income from investment and loans: NPR 50.2 million
• Other comprehensive income: NPR 14.4 million

The income from investments is not high enough to justify such a jump in advance tax. Present rules require banks to withhold 15% advance tax on interest earned from fixed deposits, which could increase advance tax liability—but not to this extent.

Under the income tax section, the company has also reported NPR 41.3 million as income from deferred tax, meaning its tax liability should have decreased, not increased.

Provision Liabilities Surge

The company’s provision (liabilities) increased sharply:

• Previous fiscal year: NPR 287.9 million
• Current quarter: NPR 1.45 billion

This sudden rise adds further concern about the company’s financial health.

Management Fails to Clarify

When NepaliPaisa journalists approached the company for clarification:

• The CEO was reported to be abroad.
• Finance Head CA Umesh Awasthi refused to speak on camera and accused the reporter of attempting to “blackmail.”
• He claimed the report was “unrefined” and suggested asking the Insurance Authority instead.

Given that the company holds public money, its management is expected to maintain transparency. However, the company has not provided clear reasoning behind the massive tax payment.

Quarterly Loss and Equity Details

• Current quarter loss: NPR 96.3 million
• Last year’s Q1 profit: NPR 10.4 million

Equity Position (As of Ashoj 2082):

Last year, retained earnings were much higher at NPR 162.2 million.

Negative Earnings Per Share

• Paid-up capital: NPR 2.54 billion
• Earnings Per Share (EPS): –3.78
  (Last year EPS was 2.53)

This shows a significant decline in performance and profitability.