KJMC FINANCIAL SERVICES LIMITED was originally incorporated as a private limited company in the name of Khandelwal Jain Management Consultancy Services Private Limited on 29th June 1988. The name was changed to KJMC Financial Services Private Limited with effect from 17th December 1993. The company has since been converted into a Public Limited Company vide the fresh certificate of incorporation dated 28th October, 1994 in terms of Special Resolution passed on 24.09.94. The Company, which was initially engaged in providing Management Consultancy services, is now a SEBI accredited category - 1 Merchant Banker engaged in various types of financial services like Issue Management, Underwriting, Term Loan & Working Capital Finance Syndication, Syndication of Lease & Hire Purchase finance, Promoter Funding, Bridge Loans, Placement of Securities with Banks/Institutions/Mutual Funds/FIIs/NRIs etc., Assisting Takeovers/Mergers, Broking and Short Term Finances like Inter Corporate Deposits & Bills Discounting. Merchant Banking Besides being an underwriter to a large number of capital issues, the Company has been associated with several Public and Right Issues in various capacities as under: Capacity No. of issues* Size of the Issue (Rs crores) Lead Manager 10 324.07 Co-Manager 12 181.20 Advisors 13 509.94 Consultants 2 105.60 --- ------- 37 1120.81 --- ------- * Upto January 31, 1995 Moreover, the Company has the mandate for following Public/Rights Issues as Lead Manager, which are likely to open by the first half of the year: Name of Issuer Size of the Issue (Rs crores) Himachal Futuristic Communications Ltd. 300.00 Shree Vindhya Cast Coaters Ltd. 12.00 Shree Vindhya Sugar & Chemicals Ltd. 30.00 Bygging India Ltd. 4.50 Multibis Financial Services Ltd. 1.50 Microtex Yarns Ltd. 3.50 Nandini Syntex Ltd. 2.00 Sanjeevni Industries Ltd. 2.19 Elegance Textile Ltd. 2.00 Sudal Industries Limited - Public Issue 1.29 Sudal Industries Limited - Right Issue 1.80 Dhoot Industrial Finance Limited 2.92 ------ 363.70 ------ Stock Exchange Memberships The Company is a member of National Stock Exchange for both the Wholesale Debt Market & Capital Market segments. It is also a Dealer on the OTC Exchange of India Ltd. In addition, the Company has reached an understanding with Mr YD Sardana to purchase his Bhubaneshwar Stock Exchange membership card and has paid the full consideration of Rs 5 lakhs for the same. An application to transfer the card in the Company's name is being made to Bhubaneshwar Stock Exchange Association Ltd Through its Corporate Office in Bombay, branch office in Delhi & representative offices in Ahmedabad, Bangalore & Calcutta, the Company aims at providing all types of financial services under one roof as an integrated financial services Company. KJMC endeavours to associate with projects from the very initial stage of conceptulisation and helps its clients not only commission the project but also in running the same smoothly to achieve the objectives behind setting up the project. The Company has been empanelled as one of the approved brokers by Unit Trust of India and has applied for empanelment with other Institutions, Banks and Mutual Funds. FUTURE PLANS: The company's future plans, which have not been taken into consideration for the proposed Requirement of Funds and Profitability Projections, include diversifying into Real Estate Development activities, sponsoring a Mutual Fund and promotion of a Housing Finance Company. For the Real Estate Development activities, twelve plots of land at Jaipur have already been acquired by the Promoters and their family members. A Memorandum of Understanding is being signed between the Company and the Promoters for real estate development. For the Mutual Fund, the necessary application has been submitted to the SEBI and the same is under their active consideration. MAIN OBJECTS OF THE COMPANY The main objects of the company to be pursued by it on its incorporation, as set out in the Memorandum are as under: 1. To undertake, procure, render, provide, supply, establish and maintain services, facilities, conveniences, assistance, cooperation, supervision, guidance, consultation and advice in the field of commerce, industry, trade and science and in the matter of laws, revenues, taxation, finance fiscal organisation, management, administration personnel, designing of accounting costing records, Marketing, distributing, Publicity, Insurance Banking, import, exports statistics, mathematics, soft ware and hard ware and other technologies including accounting and management services. 2. To look after working capital, project, financing and implementing management policies. 3. To act as Placement agencies and to act as agents for securing employment or selecting and interviewing prospective employees for any job or employment. SUBSIDIARY The company has one wholly-owned subsidiary namely KJMC Leasing & Finance Limited (KLF), having its Registered Office same as that of the Company. Following are the financial highlights of the company for the period from 29th March, 1994 to 30th September, 1994: (Rs.) Net Loss 739.00 Equity 1,07,000.00 PLANS OF THE SUBSIDIARY COMPANY KLF was originally incorporated on 29th March, 1994 with an objective to take up the Leasing & Hire Purchase activities which have now been taken up in the holding company itself. The company's existing stock broking activities of NSE and OTCEI are proposed to be transferred to KLF. The name of KLF is proposed to be changed to KJMC Capital Market Services Ltd. to reflect its proposed activities KJMC is presently a Dealer on the OTC Stock Exchange which is proposed to be upgraded to Membership, once the activities are transferred to the subsidiary company. This will help the KJMC Group to go for sponsorship of Capital Issues on OTC Stock Exchange, Market Making and Bought-out deals. Because, in view of the proposed hike in the limit of paid-up capital of the companies to Rs.10 crore for being listed on Stock Exchanges, KJMC visualises good opportunities for members of OTC Stock Exchange where most of the smaller size Capital Issues will be made. 2000 -The Company has signed an agreement with CDSL, NSDL and IIT Corporate Services Ltd. for dematerialisation. 2007 -The Company has appointed Mr. Rajnesh Jain as 'Executive Director' of the Company 2008 -The Company designated email Id of the grievance redressal division / compliance officer exclusively for the purpose of registering complaints by investors: investor.finance@kjmc.com. 2010 - The Board proposed the dividend @ 12% on Non-Cumulative Redeemable Preference Shares. 2011 - The Board proposed the dividend @ 12% on Non-Cumulative Redeemable Preference Shares. 2012 -The Board proposed the dividend @ 12% on Non-Cumulative Redeemable Preference Shares.