The board of directors meeting of the company held on December 6 decided to restart the operation from December 12 after NRB delisted it from the problematic tag on December 6.
The board of directors meeting of the central bank held on December 6 decided to release the finance company from the problematic list.
Previously, NRB declared the finance company as problematic after a field inspection of the company following its analysis of unaudited financial report of Dec/January of the year 2013/14. During the field inspection, NRB found out that the company had negative capital fund ratio of 4.36 percent and bad debt ratio of 54.18 percent.
Moreover, the company had only Rs 135.8 million in paid-up capital against the minimum paid-up capital requirement of Rs 220 million. The central bank also uncovered that the majority of share ownership (above 36 percent) of the company belongs to Ravi Chandra Pradhan, Chief Executive of the company and his near associates.
Similarly, the company had extended loans of more than 25 percent of primary capital to a single customer, firm, company and group of close associates against the NRB directives.
