Five-star club adds Hotel Central Plaza in Kohalpur

Hotel Central Plaza in Kohalpur, Banke has been awarded a five-star rating, making it a second five-star hotel in Nepalgunj. However, the total number of luxury hotels in the five-star category reached 13 with this new addition. Of the total 13 five-star hotels in the country, the Fulbari Resort and Spa in Pokhara has closed while the Everest Hotel at Baneshwor in Kathmandu has been closed after the devastating earthquake in 2015.
Hotel Central Plaza was awarded the five-star rating on February 26 after completing an evaluation of the hotel, according to the department. Hotel Central Plaza has 80 rooms with 99 beds. According to the new provision, a five-star hotel can be opened outside the Valley with 80 rooms. Earlier, the minimum number of rooms required was 100.
Likewise, Hotel Marriott Kathmandu in Naxal has also applied for the prestigious five-star rating at the Tourism Department. The department is preparing to conduct a field inspection before it will award the Marriott Kathmandu the five-star rating.
Under the Everest Hospitality and Hotel group, the proposed 235-room five-star hotel in Naxal will be managed by Marriott International. a leading hotel chain based in Maryland, US. The Naxal Marriott is the second hotel in Nepal being managed by the international hotel chain management company after the Fairfield by Marriott Kathmandu, Thamel.
We are opening the Marriott Kathmandu in Naxal on April 14, chairman of the Everest Hospitality Group Shashi Kant Agarwal said.
Apart from Marriott, two more five-star hotels – one Chhaya Centre in Thamel and another Hotel Pawan Palace in Lumbini are also being operational by June.
Similarly, the department had awarded the five-star rating to Soaltee Westend Premier in Nepalgunj in February. The Soaltee Westend Premier – formerly Soaltee Sibkrim Hotels and Resorts – in Nepalgunj had initially applied for a four-star rating but – with the new provision – it reapplied for a five-star rating.
In 2017, the Tourism Department had awarded a five-star rating to the Tiger Palace Resort at Kotihawa in Bhairahawa. The 100-room hotel – the first integrated five-star casino resort in South Asia – was developed by Australian-stock market listed Silver Heritage Group.

Wai Wai best domestic brand, Ncell best multinational brand

Wai Wai, a flagship brand of the Chaudhary Group, bagged the best domestic brand award, whereas telecom service provider Ncell bagged the best multinational brand award during the Nimbus FNCCI National Excellence Awards ceremony here today.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Best brand award – that has been started from this year – was selected on the basis of Facebook like and SMS voting.

The domestic instant noodles brand, Wai Wai – that belongs to the first Nepali billionaire listed in Forbes Binod Chaudhary, who is also the President Emiratus of CNI – was nominated along with Chocofun, Jagadamba Steels, Pashupati Paints and Tokla Tea for the best domestic brand.

Likewise, Coca-Cola, Fair & Lovely, Asian Paints and Standard Chartered Bank were other nominees in the best multinational brand category.

On the occasion, President Dr Ram Baran Yadav and finance minister Shankar Prasad Koirala awarded some 16 business houses and individuals under nine categories, including the first ever best brands – domestic and multinational – awards.

The President also handed over Nimbus FNCCI National Excellence Awards to Unilever Nepal, Quest Pharmaceuticals and Get Paper Industry as the best enterprises. The FMCG major Unilever Nepal bagged the coveted FNCCI National Excellence Award for its outstanding performance among large-scale industries, whereas Get Paper Industries was recognised under small enterprises and Quest Pharmaceuticals under the medium-scale enterprises category, and also for implementing best management practices and achieving outstanding results in customer and employee satisfaction.

Likewise, Ncell, F1 Soft International and Advanced Poly Clinic bagged Service Excellence Award under-large, small and medium-scale service enterprises category, whereas Nabil Bank bagged FNCCI People Excellence Award 2013.

The prestigious NRN Business Person of the Year was awarded to Upendra Mahato, while Min Bahadur Gurung – the owner of largest local chain Bhat-Bhateni Super Store – bagged the Best Business Person of the Year-2013 award.

The President also awarded Soaltee Group President Emeritus Prabhakar SJB Rana with Lifetime Achievement Award-2013 for his contribution to the business and the economy of the country.
Likewise, the international fame Prabal Gurung recived the Young Achievers Award (male), whereas Nikita Poudel of Gopi Krishna Group and Milee Shrestha bagged Young Achievers Award (female).
“We are here to celebrate the achievement of the Nepali business fraternity,” said FNCCI president Suraj Vaidya during the awards ceremony.

On the occasion, Gham Power Nepal bagged the commendation letter for Employment Satisfaction, Sipradi Trading for Employ Development and Butwal Power Company for Work Plan Development.

The FNCCI has fixed a set of criteria and performance indicators through multiple and scientific parameters for the award,” chairman of the FNCCI´s productivity and quality committee Saurav Jyoti said, on the occasion.

 The award is expected to inspire organisations to make their products competitive by enhancing their quality,” he said, adding that the award is aimed at encouraging business organisations to improve the quality of their management and deliver customer service excellence.

The FNCCI has been celebrating the entrepreneurship by honouring companies with best practices and services, businessmen and young achievers, who have contributed to the country with the National Excellence Award since 2001.

Hotel Soaltee gets new general manager

Nalin Mandiratta has been appointed as the new general manager of the Soaltee Crowne Plaza.
He joined the Soaltee Crowne Plaza from Crowne Plaza Rohini New Delhi,  where he was the pre-opening and opening general manager. "As a general manager of Soaltee Crowne Plaza Kathmandu, he will be responsible towards the overall operations and management of this 282
room hotel," according to the hotel that is that is one of the listed hotels at the Nepal Stock Exchange (Nepse).
Hotel Soaltee has listed 17,908,990 units of shares at a face value of Rs 10 per unit that was last traded at Rs 197 per unit on April 2. "At
the ending of the quarter on March 31, the hotel has posted Rs 163.43 million profit before tax and Rs 120.21 million profit after tax," according to the hotel's third quarter's financial statistics.
"Sailing on the sustained tourist arrivals, the hotel has been able to  increase its total income by 11.78 per cent compared to the same period of last fiscal year."
Soaltee Crowne Plaza Kathmandu — a five star deluxe hotel — is managed
by InterContinental Hotels Group PLC boasts an array of amenities with 282 rooms, seven meeting spaces, city’s finest specialty restaurants and bars, state-of- the-art fitness centre, beauty salon along with various recreational facilities, which makes it an ideal destination for both business and leisure travellers.
"Mandiratta key focus will be to continue on the path of providing branded experience to the guests by implementing true InterContinental Hotels standards at the hotel," according to the hotel. "He is also focused towards developing a robust training plan for the development of hotel staff and continues on the product development initiatives of the hotel."
He has been with the IHG for over two years and has more than 20 years
of experience in the hospitality industry with significant expertise in the hotel operations, across the reputed hotel brands like Hilton, Marriott and Carlson hotels at various senior management positions.
Mandiratta, who holds a diploma in Hotel Management from the Institute  of Hotel Management Catering Technology and Applied Nutrition, Bangalore also, has Bachelor of Arts degree from the Delhi University.

Oberoi Hotels sells Soaltee Hotel stake

Oberoi Hotels has sold its all shares in Soaltee Hotels.
Shivakrim Land and Industries of industrialist Ravibhakta Shrestha bought 1,020,144-unit shares of the Oberoi Hotel on the secondary market for Rs 142.8 million at the price of Rs 140 per unit share. The former president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Shrestha is also incumbent director of the board of Soaltee Hotels.
Oberoi Hotels had 6.84 per cent share in the Soaltee Hotels that has a total of 14,924,063 unit shares listed at Rs 10 face value in the Nepal Stock Exchange (Nepse).
The shares were transferred at Rs 140 per unit under Sale and Purchase Agreement (SPA) reached between the buying and selling parties on September 14.
The trading was done through a separate Block Share Trading window of Nepse's Automated Trading System. It is the first time such type of block share trading has undertaken in the Nepse. The window allows the investor to purchase bulk amount of share at less than the market price.In the market the shares of Soaltee were being traded for Rs 186 per unit.
"Soaltee's previous day closing was at Rs 186 but the stock exchange allowed the transaction to be undertaken at Rs 140 per unit share," informed chief executive of Nepse Shanker Man Singh.
"The transaction was undertaken only after the approval of concerned regulators like Securities Board of Nepal (Sebon), Nepal Rastra Bank (NRB) and Department of Industries (DoI)," he pointed out.
The provision is supposed to facilitate the foreign investment involved in the Nepali public companies to take back their investment without any difficulty.
"Despite the lower trading price for the transaction the market price will not be affected as for regular transaction the quoted market price will be applied," explained Singh.The hotels' subgroup index remained at Rs 384.85 points today in spite of the transaction. The hotel subgroup has 38,878,061-unit shares of four listed hotels at the Nepse with a paid up value exceeding Rs 2.5 billion. Taragaon Regency Hotel owns more than 16.5 million units of shares making it the largest listed hotel in the secondary market. Similarly, Soaltee Hotel has 14.9 million units of shares worth around Rs 2.80 billion at the current market price. Among all four listed hotels Soaltee Hotel is the most active one on the floor. After today’s transaction, the Hotel is a completely Nepali owned except for 10 per cent of Holiday Inn, an Indian group.
Solatee posted profit of around Rs 110 million in the last fiscal year and employees 700. Yak and Yeti Hotel and Oriental Hotels have got their 2.2 million unit shares and five million unit shares listed at the Nepse, respectively.

NBBL merger?
KATHMANDU: Nepal Stock Exchange (Nepse) will not halt or suspend the trading of Nepal Bangladesh Bank shares until its acquisition by IFIC Bank of Bangladesh goes into formal procedure. "The banks have only signed Memorandum of Understandings that is not legally binding, if the bank formally starts the process with the central bank then only Nepse will halt the trading," explained chief executive of Nepse Shankar Man Singh. Nepal Bangladesh Bank's share trading was halted last week when the rumours did round about the bank's 51 per cent stake to be acquired by one of the promoter’s IFIC Bank of Bangladesh. The trading resumed once the bank denied any knowledge regarding the matter. However, on Monday, the bank retracted its version and forwarded the information regarding the proceedings of IFIC Bank to Nepse. According to the information provided IFIC Bank will acquire 15 per cent of shares owned by another Bangladeshi bank Bank Asia Ltd and 26 per cent shares of different promoters. "We have put all the information regarding the matter on our website for the investors to make decision whether they want to buy its share or not," he explained. “However, given the track record of the promoters of the Nepal Bangladesh Bank, NB Group of Laxmi Bahadur Shrestha and Jeet bahadur Shrestha, there is very less possibility of any progress on the issue,” according to the market pundits.

Himal Iron celebrates golden jubilee

Himal Iron and Steel is celebrating its golden jubilee year.
The industry established in the year 1961 by late Maniharsha Jyoti, one of the pioneers in the industrialisation of Nepal, has over the years grown from strength to strength to become an example of industrialisation by the private sector, said chairman of the Jyoti Group Padma Jyoti.
Established with the slogan 'Himal builds beautiful and strong homes,' Himal Iron and Steel has been able to be the backbone of a strong Nepal providing around 450 direct jobs and thousands indirect jobs.
At a time, when there was no infrastructure, it was a distant dream of establishing an industry and that too of iron that was of very little use in the construction unlike the present time, he recalled the days at Parwanipur of Parsa district in 1961.
"Parwanipur was covered by dense shrubs and when Himal Iron was established steel rods were not even commonly used in Nepal," Jyoti, who is also a CA member said, adding, "With the course of time, Himal Iron has remarkably developed and progressed but has been consistent in the quality. "Installed with the Japanese machine in the very beginning, the industry at present has state-of-art equipments and machines."
Established with the authorised capital of Rs 2.9 million, the industry has at present Rs 800 million worth share investment apart from loans.
Himal Iron — the first iron and steel industry of Nepal — used to produce 8,000 tonnes during the early years but its capacity has been increased to more than 70,000 tonnes annually at present, said one of the oldest staff and the member of the board of director Lok Ratna Tuladhar. "It has a strong network of 108 dealers all over the country," he added.
Steel rods produced by Himal Iron — the first industry of Jyoti Group that was into trading business before Himal Iron — have been used to construct all kinds of small to big buildings, bridges and projects of Nepal at present, according to vice-chairman of Jyoti Group Dr Roop Jyoti.
From the Karnali Bridge — which is considered a role model for the use of best technology in South Asia — to the buildings of Nepal Telecom, Engineering College Pulchowk, Sunkoshi Hydropower House, and Kulekhani Hydropower Project, Soaltee Hotel, Everest Hotel, to Indian Embassy and Lincoln School Ravibhawan therr are various infrastructure projects that have used Himal Steel that has around 25 per cent market share in retail at present. "It produces 19 categories of iron rods," said the chairman of the Jyoti Group that was founded by the visionary Maniharsha Jyoti in the 1940s after his return from India, where he used to mine the ores and supply to the Steel Authority of India for sometime.
"Influenced by Mahamta Gandhi, Maniharsha Jyoti returned to the country and started his own trading house prior to establishing Himal Iron with a couple of friends," he added.

Blue chip companies on rise

Despite poor performance of the secondary market, number of blue chip companies has increased by four times to 117 from 31 in last one decade.
Nepal Stock Exchange (Nepse) has added 28 companies in its Class-A category making it to a total of 117 listed companies in the elite group of companies ranking.
"Of the 28 new entrants in the Class-A category, seven are commercial banks, nine development banks, five insurance companies, six finance companies and one hydropower company," said Shankar Man Singh, chief executive officer and general manager of the Nepse.
Of the total 176 listed companies by the end of 2009-10, some 117 companies are ranked in the Class-A companies, he said, adding that the secondary market has also declassified five companies from the elite group.
The Class-A companies, also called blue-chip companies in the domestic secondary market, have to register profits from last three consecutive years to be classified in this class.
"A company that has minimum 1,000 share holders, paid up capital of Rs 20 million, has been in profit for last three consecutive years, has paid up value of share not less than its book value and submitted its reports to the Nespe within six months of the completion after the fiscal year will be ranked in the Class-A companies," according to the regulation.
"The five companies do not comply with the regulation prompting the Nepse to declassify from Class-A," according to the Nepse. "The Nepse has been classifying the listed companies according to the international norms."
The global credit rating firms like Standard and Poor and ICICI rank the listed companies globally.
Of the total 24 listed commercial banks, 22 made it to the Class-A, whereas of the 69 listed finance companies, 47 are classified in the class.
One each from hotel subgroup (Soaltee Hotel), others subgroup (Nepal Telecom), manufacturing subgroup (Unilever Nepal Ltd) and two (Chilime Hydropower and Arun Valley Hydropower) from hydropower subgroup are in the Class-A. There are four listed hotels, Taragaon (Hyatt hotel), Oriental (Radisson Hotel), Hotel Yak n Yeti and Hotel Soalte. There are 18 companies under the manufacturing subgroup but only Unilever Nepal Ltd is classified under Class-A.
Similarly, there are four listed hydropower companies: Chilime Hydropower, National Hydropower, Butwal Hydropower and Arun Valley Hydropower but only two are classified under Class-A.
Interestingly, not a single company from the trading subgroup made it to the elite group.
"Of the total 20 listed insurance companies under inusrance subgroup 15 are classified under Class-A, whereas of the total 52 development banks only 28 made it to the Class-A," according to the Nepse.

The blue-chip companies
2009-10 -- 117
2008-09 -- 94
2007-08 -- 78
2006-07 -- 71
2005-06 -- 66
2004-05 -- 56
2003-04 -- 48
2002-03 -- 43
2001-02 -- 36
2000-01 -- 31
1999-00 -- 26
1998-99 -- 23
1997-98 -- 18
1996-97 -- 15
1995-96 -- 07

Casinos paying dues, fear licence revoke

After government decree to clear dues or face action, casinos have started paying their dues.
The parliamentary Public Accounts Committee had directed the government either to collect revenue from the casinos within a month or revoke their licences.
Today was the last day of the monthlong deadline and four of the gambling houses — Casino Venus, Casino Rad, Casino Grand and Shangrila Casino — turned up at Department of Revenue Investigation to settle their dues.
However, two of the oldest casinos — Casino Nepal and Casino Anna — have sought 30 and 15 days, respectively, to clear their dues, according to DRI. According to a letter signed by Rabindra Kumar Deuja, Managing Director of Casino Nepal, it has sought one month and another signed by Tapta Bahadur Bista, General Manager of Casino Anna, it has sought 15 days. The department will decide on Sunday whether to revoke their licences or grant them some days.
Casino Nepal based at Soaltee Hotel has to clear dues pending for the last five years, whereas Casino Anna has not paid for the last four years, said DRI.
Kathmandu-based Casino Venus and Casino Rad and Pokhara-based Casino Grand paid Rs 5 million each today. Casino Tara and Casino Everest paid Rs 20 million each yesterday. Shangrilla Casino today cleared half of its dues — Rs 20 million. It had to pay Rs 40 million except fines and interest.
The PAC had directed the Ministry of Tourism and Civil Aviation to revoke the licences of eight casinos, if they failed to settle all their tax liabilities by today, prompting DRI to issue a 35-day notice on January 9 to clear their dues standing to the tune of Rs 300 million.
The country has 10 casinos: Casino Royale (Hotel & Yeti), Casino Venus (Hotel Malla), Casino Rad (Hotel Radisson), Casino Grande (Hotel Pokhara Grande), Fulbari Casino (Hotel Fulbari), Casino Nepal (Hotel Soaltee), Casino Anna (Hotel de’l Annapurna), Casino Everest (Hotel Everest), Casino Tara (Hotel Hyatt) and Casino Shangrila (Hotel Shangrila). Two casinos are in Pokhara, while the rest are being operated in the Capital.
When Casino Nepal — the first casino in Asia — began operations back in 1968, it was open only for foreigners, but the casinos lately are accused of letting Nepalis enter, which is against the law of the land.

PAC directs government to collect dues or close casinos in a month

Public Accounts Committee (PAC) of the Legislature-Parliament has directed the government to cancel registration of the casinos, if they do not clear their dues within 35 days.
The government still has to recover Rs 193.5 million from five casinos -- Casino Anna, Casino Royal, Casino Shangrila, Casino Nepal and Casino Fulbari. It has recovered Rs 77.4 million from some of the Casinos recently after a massive crackdown.
When Casino Nepal -- the first casino in Asia -- was started in 1968, it was open only to foreigners but the casinos lately are blamed of entertaining the Nepalis against the law of the land. "The Casinos have not been following the law of the land and entertainng the Nepalis," said Som Bahadur Thapa, secretary at the PAC that has directed to revoke the licence of the Casinos immediately, if they are found entertaining the Nepalis, now onwards.
The committee also blamed the Ministry of Tourism and Civil Aviation -- that issues the licence to the Casinos -- for not regularly and preperly monitoring the Casinos. Not only the Casinos, the Ministry of Tourism and Civil Aviation is also blamed for not monitoring the 475 hotels licenced by itself on either they have followed the law of the land or not.
"The Casinos have been renewed repeatedly without any proper regulation," the committee said, directing the ministry not to issue any new licence without preparing the regulation.As the hotels are issued the licence to operate Casinos, there is still a confusion over who is laible to pay tax if the Casinos won't pay.
Nepal's casino industry is considered the oldest in South Asia but lately it has been in news for all the wrong reasons like tax evasion and entertaining Nepalis.According to the ministry, the country currently has 10 casinos; Casino Royale (Hotel & Yeti), Casino Venus (Hotel The Malla), Casino Rad (Hotel Radisson), Casino Grande (Hotel Pokhara Grande), Fulbari Casino (Hotel Tha Fulbari), Casino Nepal (Hotel Soaltee), Casino Anna (Hotel De'l Annapurna), Casino Everest (Hotel Everest), Casino Tara (Hotel Hyatt) and Casino Shangrila (Hotel Shangrila).
The ministry has informed the committee that there are 10 five-star hotels including Hotel Radisson, Hotel Everest and Fulbari Resort that are under renewal process; two four-star hotels; 24 three-star hotels; 45 two-star hotels; 36 one-start hotels; 358 tourist standard hotels and resorts making it to a total of 475 licenced under the ministry.
The ministry has recently issued licence to operate mini-Casinos at Hotel Vaishali (Thamel), Hotel Ratna (Biratnagar), Hotel Grande (Pokhara), Hotel Sneha (Nepalgunj) for healthy entretainment, increase in tourist number and their stay duration, and generate employment.

Increasing bank rates make Nepse less attractive

Increasing interest rates, over supply and margin call made investors lose confidence in the domestic capital market, making it lose its charm.
The one-year fixed deposit interest rate has gone up in the almost equal per cent compared to the Nepse's downfall.

The one-year fixed deposit interest rate has gone up by 65 per cent from 5.23 per cent in September 2008 to 8.64 per cent this September, according to a renowned market analyst Rabindra Bhattarai.

Similarly, the market has plunged to 404.43 points from 976 points in last two years. "In the last two years, the Nepse has also dropped by 68 per cent pulling the market capitalisation to around Rs 350 billion from Rs 500 billion," he said, adding that the number of shares has also nearly doubled due to rightsd shares and number of listed companies increase.

There were 144 listed companies in September 2008 and this September it reached 180 that is an increase of 25 per cent. Similalry, the exceeding supply of stock in comparison to demand is also reason for index not being able to perform well. Likewise, the stock market cycle that had inflated the stock values abnormally pushing Nepse index is itself deflating the prices of those overvalued stocks which is also bring down the index.

Meanwhile, this week too bearish trend continued as the week saw Nepse plunging deeper to 392.04 points. Nepse went further down by 6.84 points from a week ago to close at 398.14 points.

Last Sunday morning, the market opened at 398.14 points and on Friday it closed at 392.04 points.

According to Bhattarai, the new benchmark could be around 350 points and lower as by the mid-January, the investors get the margin call from the banks, they have taken loans against the shares as collateral leaving them with no option but to sell their stocks that will pull the Nepse further down.

Nepse observed transaction worth Rs 127 million through 7,085 transaction of 483,317 unit shares of 111 companies during the last week. The transaction amount has increased by 14.65 per cent compared to a week ago. The sensitive index -- that measures the Class A listed companies’ index -- also went down by 1.59 points. While float index -- that represents only tradable shares -- has also dipped by 0.85 points.

Manufacturing, hotels and others sub group ended up in green zone as Unilever Nepal, Soaltee Hotel and Nepal Telecom were able to earn throughout the trading week. Similarly, insurance companies, development banks, hydropower and commercial banks, finance companies and trading subgroup lost.

Bank of Kathmandu topped the chart in terms of transaction amount with the transactions worth Rs 15.7 million and in terms of number of shares traded Patan Finance was the forerunner with 48,814 shares changing hand and in terms of number of transactions Zenith Finance topped with 825 transactions.

The week’s top five performers in terms of transaction amount was Bank of Kathmandu (Rs 15.77 million), Nepal Investment Bank (Rs 9.25 million), Nepal SBI Bank (Rs 8.21 million),Nabil Bank (Rs 6.64 million) and Himchuli Bikas Bank (Rs 6.22 million).

Almost all of the major commercial banks lost throughout last week resulting in commercial banks subgroup losing 12.33 points but today -- the first day of the week -- the commercial banks gained a marginal 0.56 point to close the sub group at 346.62 points, though it could not push the Nepse up that ended at losing 1.06 points to close the day's trading at 390.98 points.

Oriental Hotels posts whopping profits

Oriental Hotels Ltd has registered its net profit by almost four times in 2009-10 compared to a fiscal year ago. The company that owns Radisson Hotel in Kathmandu has earned Rs 51.4 million as net profit in 2009-10, while it had earned only Rs 14.1 million in a fiscal ago. The hotel’s income had also gone up by 12.27 per cent to Rs 500 million from Rs 445.9 million in the previous fiscal year.
“The profit rate was increased as the hotel had increased the average occupancy and room tariff rates,” said Gobinda Das Shrestha chairman of the company. However, the hotel has not decided to distribute bonus to its shareholders. “The increased number of tourists entering Nepal has also attributed to the increase in profits,” he said adding that Oriental Hotels Ltd is the first Nepse-listed company to hold its annual general meeting (AGM).
The company also operates and manages the executive lounge and restaurant located in the Tribhuvan International Airport (TIA). “We believe that these outlets will also contribute to the business and facilitate the coming Nepal Tourism Year 2011 (NTY 2011),” he added. Likewise, the hotel has also added 100 more rooms and other services with the view of accommodating increased number of tourists that will visit Nepal during NTY 2011 that aims to attract one million tourists.
Oriental Hotels is one of the four hotels listed on Nepal Stock Exchange (Nepse).
Hotel Soaltee, Hotel Yak n Yeti, Oriental Hotels and Taragaon Regency Hotel that owns Hyatt Regency have listed their 35,434,145-unit shares at the Nepse. The total paid-up capital of these hotels subgroup stands at Rs 2.51 billion. However their contribution to the total trading at the secondary market comes to 1.41 per cent only.

Nabil declares bonus

KATHMANDU: The board of directors (BoD) meeting of Nabil Bank has decided to give 30 per cent cash dividend and 40 per cent bonus share to its share holders. The decision will be carried out after it is approved by Nepal Rastra Bank and the bank’s annual general meeting.

Nepse lists 95 firms under Class-A category

Five development banks, two insurance companies, 10 finance companies, two hotels, National Hydropower Company and Nepal Telecom (NT) -- a total of 21 listed companies -- made it to the prestigious Class-A category in this fiscal year, according to the Nepal Stock Exchange (Nespe).
"The Nepse has listed 95 companies under Class-A category, out of the total 149-listed companies at the sole secondary market," said the sole secondary market here today.
A company that has atleast Rs 20 million paid up capital, minimum of 1,000 common share holders, operating in profit since last three years, must have floated shares to public under the by-laws 9, book value per share must not be less than its paid up value and has been submitting its financial statement within six months from the closure of the fiscal year is qualified to be listed under the Class-A category, according to the Nepse.
The number of companies listed under Group-A category has been continuously increasing since 1996-97, when there were only seven companies under the category.
"In the year 2009-10, Nepse also delisted three companies from under the Class-A category apart from adding 21 to it," the Nepse said adding that two companies merged to get entry into the prestigious category. "United Insurance, Bhajuratna Finance and Everest Finance are delisted from under the Class-A category as they didnot abide by the regulation," it added. However, Nepse listed five development banks, two insurance companies, 10 finance companies, two hotels, one hydropower company and Nepal Telecom (NT) under the Class-A companies in this fiscal year," said secondary market that has been witnessing a sluggish performance in the last three months.
Nepal Stock Exchange, according to the international norms, classifies the listed companies under the Class-A category according to their performances.
According to the Nepse, 15 commercial banks are under the Class-A category, whereas only one company each -- Unilever Nepal Ltd and Nepal Telecom -- from the manufacturing group and Others group are under the Class-A, two each from hydropower companies group and hotels group, 11 from insurance companies group, 43 finance companies, 20 development banks fall under the Class-A category.

Soaltee Hotel proposes dividends

Soaltee Hotel has proposed bonus shares and cash dividends.
The 161st board of directors' (BoD) meeting of Soaltee Hotel Ltd on Wednesday proposed 20 per cent bonus shares and 11.5 per cent cash dividend to its shareholders.
The proposal is subject to approval from its annual general meeting (AGM), said the hotel that has decided to hold its 35th AGM on December 17.
There are only four hotels listed under the hotels sub-group in Nepal Stock Exchange (Nepse). Hotel Yak & Yeti, Soaltee Hotel, Taragoan Regency (Hyatt) Hotel and Oriental Hotel (Radisson) have listed a total of 24,225,898-unit shares in the secondary market.
But Soaltee Hotel has a paid-up value of Rs 10 per unit share whereas the remaining three have Rs 100 paid-up value per unit share. However, the secondary market has witnessed a regular trading of only two hotels -- Soaltee Hotel and Oriental Hotel (Radisson). The shares of Taragoan Regency (Hyatt) Hotel also is being traded though, irregularly. Oriental Hotel (Radisson) has held its 12th annual general meeting on September 16. Both the shares of Oriental Hotel and Soaltee Hotel have been trading for around Rs 200 per unit.
Hotel Yak & Yeti that has listed 2,209,208-unit of shares with a face value of Rs 100 per unit, wants to be delisted from Nepse.
Hotel Yak & Yeti could be delisted soon, according to Nepse. According to the rule, if a company does not pay annual renewal fee for three consecutive years, it can be delisted. The hotel has not paid its renewal fee for three consecutive years.
The Nepse board has also discussed the hotel's request to be delisted but has not taken any decision.
Meanwhile, Kist Bank's board of directors' meeting has also proposed 1:1.5 rights shares and 3.5 per cent cash dividends from the profits of the fiscal yaer 2008-09.
The youngest commercial bank -- that has upgraded from the Class-C finance company to Class A commercial bank -- has planned its annual general meeting on November 14. The AGM will approve the BoD's decision. It will have its books closure for the AGM from October 30 to Novermber 14. The bank has planned to increase its paid-up capital to Rs 5 billion -- the largest amount among commercial banks in the country. According to Nepal Rastra Bank (NRB), a commercial bank needs to have Rs 2 billion paid-up capital.
Meanwhile, Nepse again dropped below the 600-point mark to close trading on the first day of the week at 599.22 points. Nepse lost 1.94 points from the morning's opening of 601.16 points.

Nepse allows some companies to start trading

Some firms -- United Insurance Company, Raghupati Jute Mills, Nepal Bitumin and Barrel, Nepal Finance and Nepal Electricity Authority (NEA) Bond -- have paid their annual listing renewal fee today.
Nepse has also allowed today the trading of Paschimanchal Development Bank and Salt trading Corporation, which have already paid their renewal fee within the time but Nepse -- by mistake -- halted their trading yesterday.
Though, the secondary market has never seen the trading of bonds, it has also frozen the trading of NEA Bond and Nabil Bank's Bonds due to their failure in paying the annual renewal fee. Similarly, it has halted the trading of Nepal Development Bank and Hotel Yak & Yeti. The former has been suspended after the Nepal Rastra Bank filed a case asking for permission to liquidate it at the Court and the later has been not paying the renewal fee for last three years as it wanted to be delisted.
According to the Nepse, it has halted the trading of 19 companies -- including Paschimanchal Development Bank and Salt trading Corporation that have already paid their fee. The renewal fee has to be paid -- as according to the Share Listing Regulation -- within the three months of the new fiscal year that ended on October 17. "Due to their failure in paying renewal fee, the Nepse has halted their trading yesterday -- the first day of the trading of this week after the holiday," Nepse said.
A company has to pay Rs 50,000 renewal fee, if its paid-up capital is more than Rs 100 million. Similarly, a company has to pay Rs 35,000 fee, if its paid-up capital is between Rs 50 million and Rs 100 million. One has to pay Rs 25,000, if the paid up capital is between Rs 10 million and Rs 50 million whereas a company has to pay Rs 15,000, if its paid-up capital is less than Rs 10 million.
Meanwhile, Nepse today also lost -- though a marginal 0.05 point -- to close trading at 601.16 points. But the float index gained 0.04 point to close at 57.48 point.
Api Finance has started its trading from Thursday at Rs 540 per unit of shares. Its 10 units of shares were traded for Rs 5,400 on the first day at the secondary market.

Hotel Yak & Yeti to be delisted
KATHMANDU: Hotel Yak & Yeti -- that has been wanting to be delisted -- could be delisted soon. As according to the rule, if a company doesnot pay annual renewal fee for three consecutive years, it could be delisted. The hotel has not been paying its renewal fee for three consecutive years. The Nepse board has also discussed on the hotel's request to be delisted but has not taken any decision. Only four hotels are listed in the hotels sub-group under Nepse. Hotel Yak & Yeti, Soaltee Hotel, Taragoan Regency (Hyatt) Hotel and Oriental Hotel (Radisson) have listed a total of 24,225,898-unit shares in the secondary market. Except for the Soaltee Hotel that has a paid up value of Rs 10 per unit share others have Rs 100 paid up value per unit share. Hotel Yak & Yeti has listed 2,209,208-unit of shares with a face value of rs 100 per unit.

Hotel Gruop does well

Soaltee Hotels Ltd is giving 10 per cent cash dividend — that is subject to the approval from its annual general meeting (AGM) — to its share holders from the profit it has registered during the fiscal year 2006-07.

Soaltee Hotels Ltd that is holding its 33rd AGM on January 9, will be the second hotel to hold its AGM. Two months back, Oriental Hotels (Radisson Hotel) held its 10th AGM.

The encouraging tourists inflow — in the past year due to peace accord between the government and Maoists — has helped the hotel industry to grow, lately.

However, Yak & Yeti Ltd has applied for delisting of its shares from the Nepse that had earlier freezed its share transactions after the former failed to pay its renewal fee for this fiscal year. "Yak & Yeti has requested us to be delisted," said Rewat Bahadur Karki, general manager of the Nepse.

Yak & Yeti Ltd's special AGM on December 14 has also decided to delist its shares from the Nepse. It is holding its regular AGM within this month.

According to the rule, the listed companies must pay their renewal fee within the first three months of the fiscal year. Hotel Yak & Yeti was the only hotel among the listed four hotels that has not paid its renewal fee.

Oriental Hotels has in its 10th AGM announced Rs 36,47,959 profit for the fiscal year 2006-07 from Rs 2,78,80,557 loss in 2005-06. It has earned Rs 15,17,00,000 from room charge only.

Oriental Hotels also become the third company — after Unilever and Nabil Bank — to hold its AGM this year. It held its 10th AGM on October 11. Oriental hotels has 28,000 share holders. The shares of Oriental Hotels Ltd (Radisson Hotel) has been hovering around Rs 122 per unit.

"Investment on assest-based industry like hotel has a bright and secure future," Bidhya Krishna Shrestha, managing director of Radisson Hotel, Kathmandu said, adding that Radisson has become the highest foreign currency earner among 5-star hotels for this year. "We also got ICAN best accounts runner-up awards," he added.

The hotel group, especially Soaltee and Oriental Hotels Ltd, has set an example at a time when the real sector has no contribution in the current bullish capital market.

"There is no transparency and good governance in the real sector," Shrestha said, explaining the reason behind real sectors absence from the Nepse.

How comfortable is Hotel Group

1. Yak & Yeti Ltd — listed shares 2209208 units — paid up value Rs 100 per share — total paid up capital Rs 220920800*

2. Soaltee Hotel - listed shares 8697187 units — paid up value Rs 10 per share — total paid up capital Rs 86971870

3. Taragaon Regency Hotel Ltd — listed shares 7449875 units — paid up value Rs 100 per share — total paid up capital Rs 744987500

4. Oriental Hotel Ltd — listed shares 5000000 units — paid up value Rs 100 per share — total paid up capital Rs 500000000

Total listed shares of Hotel group 23356270 units — total paid up capital Rs 1552880170