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Jenson and Nicholson Finance Ltd.

BSE: 511373 | NSE: | Series: NA | ISIN: INE004D01018 | SECTOR: Finance - Investments

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Dec 27, 11:22
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Jenson and Nicholson Finance is not listed on BSE

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Dec 27, 11:22
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Jenson and Nicholson Finance is not listed on NSE
Company History - Jenson and Nicholson Finance
BRIEF HISTORY & BUSINESS OF THE COMPANY
 
 The Company was incorporated on February 20, 1986 as a Public Limited
 Company as J & N Leasing Co. Limited. The Company obtained the
 Certificate for Commencement of Business on May 2, 1986 and commenced
 its operations in June 1986. In 1992, symbolic of its synergistic
 activities in financial markets, the name of the Company was changed
 to Jenson & Nicholson Financial Services Limited.(JNFSL) The Company,
 a part of Jenson & Nicholson business group in India is primarily
 engaged in Lease and Hire Purchase financing of plant, machinery and
 equipments to its various clients. Over the past eight years, the
 Company made rapid strides in its business.
 
 In addition to lease/hire purchase financing of all types of capital
 goods/consumer durables/office automation/vehicles etc., the
 activities of the Company now includes bill discounting, inter
 corporate deposits,
 financial advisory services and allied activities.  Today it is also
 a SEBI registered Category I Merchant Banker, providing all types of
 merchant banking activities. 
 
 The Company has its head quarters in Calcutta and representative
 offices at Bombay, New Delhi, Madras and Guwahati.
 
 APPRAISAL SYSTEM
 The Company's disbursement policy comprises on the one hand,
 stringent criteria in appraising credit risk and on the other hand,
 conservative norms for the Company's credit exposure as follows:
 1. Prima Facie screening and in-principle acceptance.
 2. Meetings with the client
 3. Overall and individual exposure to each industry,company and
 activity
 4. Security of the transaction
 5. Balancing between risk and return
 6. The Company background and market perception of the
 Promoters/Group Companies
 7. Detailed financial analysis of the Company
 8. The Company's specific competitive advantage in the market.
 9. Market and Industry analysis.
 
 MONITORING OF RECEIVABLES
 The Company closely monitors and reviews its outstanding
 commitments/transactions periodically. Timely payment of principal
 and interest is ensured through computerised operations. The Company
 obtains post-dated cheques in advance to ensure timely payments and
 in case of delayed payments if any, levies a penal interest on the
 same. Wherever required the Company takes additional collateral
 security and appropriate guarantees to ensure safety and liquidity of
 the Company's funds. The Company insists on a insurance cover for the
 equipments as an additional safety measure.
 
 MANPOWER & PERSONNEL
 The operations of the Company are managed by Professionals well
 versed in their respective fields at various levels. The Company
 presently employs 20 persons in various categories and is in the
 process of immediately appointing atleast 12 more persons as General
 Manager/Managers and Assistant Managers to be located at different
 places. 
 
 Fund Based Activities
 Mr.S.Kumar, a qualified Chartered Accountant with around 5 years
 experience in industrial and financial services sector with
 specialisation in fund based activities like lease, hire purchase,
 bill discounting etc. looks after the marketing set up.
 
 Mr.B.Ghosh, a qualified Chartered Accountant with years of experience
 in a few leading industrial houses and is well conversant with
 Financial analysis, Project Feasibility study, Project Counselling
 and co-ordination with banks and financial institutions.
 
 Mrs.Balaka Sen, a qualified Cost Accountant has considerable
 experience in leasing and hire purchase financing in a few leading
 financial companies. 
 
 Non Fund Based Activities
 Mr.S.Seth, PGDBM, with over 4 years experience is well conversant
 with the Merchant Banking activities, issue management, preparation
 and appraisal of project report, and all other pre and post issue
 work.
 
 MAIN OBJECTS OF THE COMPANY
 The main objects as set out in the Memorandum of Association are as
 under:
 
 1. To carry on the business of an Investment Company or an Investment
 Trust Company. to undertake and transact trust and agency investment,
 financial business, financiers and for that purpose to lend or invest
 money and negotiate loans in any form or manner, to draw, accept
 endorse, discount, buy, sell and deal, in bills of exchange,
 hundies, promissory notes and other negotiable instruments and
 securities and also to issue on commission, to subscribe for,
 underwrite, take, acquire and hold, sell and exchange and deal in
 shares, stocks, bonds or debentures or securities of any Government
 or Public Authority or Company whether in India or elsewhere and to
 form, promote, subsidise and assist companies, syndicates and
 partnership,
 to promote and finance industrial enterprises and also to give any
 guarantees for payment of money or performance of any obligation or
 undertaking, to give advances, loans and subscribe to the capital of
 industrial undertakings.
 2. To act as investors, guarantors, underwriters and financiers with
 the object of financing Industrial Enterprises, to lend or deal with
 the money either with or without interest or security, including
 current or deposit account with any bank, other person or persons
 upon such
 terms, conditions and manner as may from time to time be determined
 and to receive money on deposit or loan upon such terms and
 conditions as the Company may approve. Provided that the Company
 shall not do any banking business as defined under the Banking
 Regulation Act, 1949.
 3. To carry on and/or undertake the business of buying, selling,
 importing, exporting, dealing, trading, hire purchase, leasing,
 agency, licensing, subleasing, renting, chartering, servicing,
 repairing, assembling, packing, forwarding, stocking, distributing,
 erecting,
 reconditioning, transporting, Installing, assisting, subsidising,
 exchanging, granting of deferred payment facilities, providing
 collateral securities in respect of factories, plants, heavy and
 light machinery, equipments, articles, land, houses, flats, shops,
 buildings,
 structures, power plants, electricals, warehouses, fixtures,
 fittings, tools, implements, vehicles, furniture, carriers, rigs,
 appliances, utensils, apparatus, accessories and all kind of goods,
 raw materials, assets and all sorts of moveable and immovable
 properties which
 may concern or be required for agriculture, plantation, dairy,
 poultry, animal husbandry, atomic energy, aviation, cement, chemical,
 paint, electronics, fertiliser, computer, engineering industry, oil
 exploration, in commerce,transportation, communication, defence,
 education, electronics, entertainment, energy, housing, domestic and
 household needs, edible and food products, medical and health
 industry, irrigation, railways, science and technology, research and
 development, shipping and/or transport by air or land, space, steel
 industry, mining,
 hotel and tourism.
 
 4. To carry on and/or undertake the business of traders and that of
 hire purchase and leasing of all types of movable and immovable
 properties and for that purpose to acquire by purchase or on lease,
 sub lease or rental property and to re-sell or give on lease or sub
 lease and on leave and licence or on rental basis allow any of the
 properties
 belonging to the Company or acquire by it on lease, sub lease or
 rental basis. 
 5. To acquire and hold and otherwise deal with shares, stocks,
 debenture stocks, bonds, obligations and securities issued or
 guaranteed by any Company and debentures,debentures stocks, bonds,
 obligations and securities issued or guaranteed by any government,
 sovereign, ruler,
 commissioner, public body or authority, supreme, municipal, local,
 quasi body or otherwise whether in India or elsewhere and to invest
 and deal with the monies of the Company in real and personal property
 of all kinds and in general to carry on business of investment Company
 and
 undertake all kinds of trust, investment agency and financial
 business.
 
 PRESENT BUSINESS OF THE COMPANY
 The Company having established itself in the highly competitive
 market of Financial Services, has drawn up an ambitious growth plan
 for the future. Thanks to the spurt in the industrial activities and
 business operations, in response to the liberalisation policies of
 Government, the Company is in an eminently suitable position to avail
 the
 opportunities of increasing demand for financial services - both fund
 based and non-fund based. The Company has taken steps to consolidate
 and expand its existing activities namely, i.e. Leasing, Hire
 Purchase, Bill Discounting, Consumer Finance etc.
  
 It has recently obtained the approval of SEBI as Category I Merchant
 Bankers which will substantially increase its business operation.
 
 The Company provides a comprehensive package of financial services.
 The services are broadly classified into Fund Based and Non Fund
 Based Activities. 
 
 A) Fund Based Business
 i) Lease Financing/Hire Purchase
 Lease/Hire Purchase proposals are received either through financial
 brokers or through direct approach by the Company's Marketing
 Division.
 
 For direct approach the Company identifies prospective clients
 through careful analysis of published financial results of such
 clients, scanning through articles on different companies that appear
 in business journals, Stock Exchange Year Books which detail financial
 performance
 figures as well as profiles of the listed Companies. Besides, in
 response to Company's advertisements, a large number of clients
 approach the Company directly for their financial requirements.
 
 For consumer finance, the Company has direct tie-up with
 manufacturers of Automobiles, Consumer Durables, Audio-Visual & other
 type of Electronic items and manufacturers of other Domestic
 Appliances. The Company also has arrangement with reputed dealers of
 these items.
 
 Major lessees include Lloyds Steel Industries, Khaitan Hostombe
 Spinels Ltd, Sitapur Plywood Industries Ltd, Goodearth Organic (I)
 Ltd. etc. East India Pharmaceuticals, Punj Lloyd Limited, Grapco
 Granites Limited etc. have availed of the hire purchase financing
 from the Company.
 There has been no delays/defaults from the existing clients.
 
 Total outstanding amount deployed in lease and hire purchase
 activities is Rs.10.33 crores and Rs.12.73 Crores respectively.
 
 ii) Bill Discounting
 Marketing of Bill Discounting proposals are done in the same fashion
 as for Lease/Hire Purchase.  Genuine trade bills, accepted by well
 known companies are discounted at a rate of around 25%. The bills are
 generally for a period of 90 days. As on 30/09/94 the outstanding
 value of the Bills discounted was Rs.5.86 crores. 
 
 B) Non-fund based business
 i) Merchant Banking
 The Indian Capital Market has been significantly active in the recent
 years. Indian Corporate Sector including Public Sector Undertakings,
 Financial Institutions etc. has shown increased trend of reliance on
 the Capital Market for raising funds. Abolition of the office of CCI,
 free pricing etc. have given wider access for the corporate sector to
 the Capital Market.
 
 In order to diversify its operations to non-funds based activities,
 the Company has obtained registration from SEBI as a Category
 Merchant Banker. It has already started its operation of Merchant
 Banking activities viz. Issue Management, Capital Restructuring,
 Underwriting, Project Appraisal & Consultancy etc. and is now poised
 for a substantial expansion in this area to play an active role in
 primary/secondary market operation.
 
 Within a short span of time since the Company obtained Category I
 Merchant Banker registration from SEBI, it has 4 (four) mandates of
 Lead Managership in hand. With a reputation already established in
 its existing lines of business, sound financial base, highly
 professional and reputed Board and Management team, intimate
 knowledge of Capital Market, network of branches and representative
 offices, the success in the Merchant Banking business. 
 
 ii) Underwriting
 The Company is actively involved in the business of Underwriting of
 Equity Shares, Convertible Debentures, Non-convertible Debentures,
 Bonds etc. This has been targeted as a high growth of business area.
 The Company is currently involved in underwriting of securities by
 Corporate Bodies and it plans to expand this activity by underwriting
 securities by Corporations, Financial Institutions, Mutual Funds,
 Banks etc. 
 
 iii) Fixed Deposit
 The Company launched its Fixed Deposit Scheme for the public in
 August 1993. The Company offers a multiple choice of fixed deposit
 schemes to its investors. The schemes offered by the Company are
 Cumulative Deposit Scheme, Fixed Income Scheme, Cash Certificate
 Scheme and Recurring Deposit Scheme.
 
 Credit Analysis & Research Ltd. (CARE) has assigned a Credit Rating
 of 'CARE 'A-(FD)' to the fixed deposit scheme of the Company. 
 Instruments with this rating are considered upper medium grade and
 adequate.
 
 The response to these schemes has been excellent and the Company has
 been able to mobilise substantial deposits from public.  The Company
 has collected deposits aggregating Rs.2.89 crores for the six monthly
 period ended 30.9.94 and has targeted to collect a total amount of
 Rs.6.69
 crores for the financial year 1994-98. This represents an increase of
 500% over the previous year ended 1992-93. 
 
 SUBSIDIARY COMPANIES
 The company does not have any subsidiaries.