Personalize Page: PLIC
Business: Life insurance
Established: June 2007
Chairman: Rajendra K. Khetan
CEO: Resta Jha
No. Of branches and Sales office: 68
Reinsurer: SCOR Global Life, French Company with assets size USD 6.9
Billion (as of 2010)
Corporate office: Hattisar, Kathmandu.
General Public: 30%
List of prominent Shareholders
Laxmi bank limited 15%
Mercantile Capital Pvt. Ltd. 11%
Mutual trading Co. Pvt. Ltd. 10%
Himalayan Exim Pvt. Ltd. 10%
Ratan Lal Sanghai 8%
Prem Prakash Khetan 8%
Rasmi Holding Pvt. Ltd. 6%
Note: *As per the latest published annual report.
achievements of the Company:
rate ( In 9 months) (In %)
No. Of policies sold
Total Premium Collected (Rs. Cr.)
Total Investment (Rs. Cr.)
at a glance:
focused management and promoters.
advertisement with prestigious brand ambassador.
of innovative products like pension plans.
52 Week high price: 218
52 Week low price: 134
Latest trading price ( LTP): Rs. 165( as of 01.12.2011)
Paid up Capital: Rs. 36 Cr.
Market Capitalization (at LTP): Rs. 59.40 Cr.
EPS = RS. 35.16 (Ref. Audited Q4 067/68)
P/E Ratio: 4.69 (at LTP)
Net Worth per Share: Rs. 160.32 (Ref. Q4 067/68)
Total trading days in Q1 068/69: 54 out of 57.
Total shares traded: 38,600.
from Financial Statement: (based on audited Q4)
Paid up Capital: Rs. 36 Cr.
Reserve and Surplus: Rs. 21.71 Cr.
Life Insurance fund: Rs. 36.87 Cr.
Size of Balance Sheet: Rs. 94.587 Cr.
Profit: Rs. 12.66 Cr.
Company claims that it reinsures with SCOR Global life, top 5 reinsurance the
world. However, on observation of its
Financial Statement, the re-insurance commission or expenses isn't charged or
on audited Financial Statement (067/68), the net profit of the company appears
to be Rs.12,65,68,000.
In addition the net worth of the company appears to be Rs. 577.1 Million.
However this representation of profit and size of
Balance Sheet is based upon the Standard prescribed by the relevant accounting
and the auditing principles (NAS & NSA). Through investor's perspective,
one shouldn't arrive at conclusion on investment decision solely relying on
This value of
profit arrives because of the deferred tax asset (DTA) amounting to Rs. 82.549
Million. The aforestated portion of profit isn't distributable thus the actual
value of real profit is reduced by two third. The effect of this deferred tax
treatment inflates the value of Reserve and Surplus thus finally inflating the
value of Net worth of the Company and the size of the Balance sheet. Thus
effective EPS, P/E and Networth per share come different when considered this
Life insurance business is among that
category of business where income is very conservatively or toughly recognized
in Profit and Loss account. The substantial contribution in profit comes from
the policies like term policies and other similar policies where liability
incurs only upon claim and not on maturity. For other long policies there is
the necessity of the actuary's valuation.
growth in the profit of life insurance company isn't so easy as compared to
According to regulatory body directives, the
life insurance companies are required to raise up their capital to minimum Rs.
500 Million. By the observation of
Company fundamentals, the right issue is more likely in near future.