JS Group

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JS Group
Private
Industry Financial services
Founded 1971 (1971)
Headquarters 7F, The Forum, Khayaban-e-Jami, Karachi, Pakistan
Area served
Pakistan
Services Finance and Insurance
Asset Management
Consumer Banking
Corporate Banking
Investment Banking
Investment Management
Private Equity
Number of employees
23,000
Website www.js.com

JS Group is a financial services group in Pakistan, founded in 1971 by Jahangir Siddiqui.[1] The company controls and operates financial services companies in Pakistan. Financial services of JS Group include asset management, commercial banking, company research, insurance, investment banking, Islamic banking, micro finance, and stock brokerage. JS Group also has investments throughout Pakistan's economy, in the industrial sector, technology and media sectors, commercial real estate, energy and natural resources. JS Group has its headquarters in Karachi.[2]

JS Group has six businesses: JS Industrial, JS Infocom, JS Property, JS Resources, JS Transportation and JS Financial.[3]

JS Financial[edit]

JS provides financial services in commercial banking, asset management, private equity, investment banking, securities brokerage, company research, insurance, Islamic banking and finance, and micro finance. Companies operated by JS financial are:

  • Jahangir Siddiqui & Co. Ltd. (JS&Co)
  • JS Global Capital Limited (JSGCL)
  • JS Bank Limited (JSBL)
  • JS Investments Limited
  • EFU Insurance Group
  • Bank Islami

Jahangir Siddiqui & Co. Ltd[edit]

Jahangir Siddiqui & Co. Ltd. was incorporated (under Companies Ordinance 1984) in 1991 as public unquoted company.[4][5] The Company is presently listed on Karachi Stock Exchange. The company is also a corporate member of Karachi Stock Exchange and Islamabad Stock Exchange. JS Group's principal activities are trading of securities, maintaining strategic investments, consultancy services, underwriting, etc. The company has a long term rating of AA (Double A) and short term rating of A1+ (A one plus) assigned to it by Pakistan Credit Rating Agency.[6][7] Jahangir Siddiqui & Co. Ltd. and its subsidiary companies are involved in trading of securities, maintaining strategic investments, investment advisory, brokerage, asset management, agency telecommunication, commercial banking, power generation and other businesses.[8] Jahangir Siddiqui & Co posted a profit (after tax) of Rs 2,352 million in 2012.[9]

JS Bank Limited[edit]

JS Bank is a majority-owned subsidiary of Jahangir Siddiqui & Co. Ltd. and currently operates 211 branches in 112 cities, with a total asset base of Rs 112 billion in 2013.[10] It has a primary dealer license for government securities from the State Bank of Pakistan.[11] According to a press release, the long-term entity rating of JS Bank Limited (JSBL) has been promoted to ‘A+’ (Single a Plus) by Pakistan Credit Rating Agency (PACRA).[12] JS Bank was formed after the merger and amalgamation of Jahangir Siddiqui Investment Bank Limited and commercial banking operations of American Express Bank Ltd Pakistan. JS Bank Limited commenced operations in Pakistan as a fully scheduled bank on 30 December 2006.[13] JS Bank’s consolidated profits (after tax) for the year 2013 were Rs 351 million.[10]

Bank Islami[edit]

Dubai Bank was one of the founding shareholders of Bank Islami which invested 18.75% in the total capital.[14][15] Bank Islami is the joint venture project of three groups namely Jahangir Siddiqui & Co. Pakistan, Randeree family, & Dubai Bank.[16] The State Bank of Pakistan issued a No Objection Certificate on 19 August 2004 and Bank Islami Pakistan Limited, the second full-fledge Islamic Commercial Bank in Pakistan, was incorporated on 18 October 2004 in Pakistan.[17]

JS Investments Limited[edit]

Founded in 1995, JS Investments Limited is a private sector asset management company in Pakistan. The company is listed on the Karachi Stock Exchange and is a part of JS Group.[18]

EFU Life[edit]

JS Group has holdings in EFU Life.

JS Industrial[edit]

  • Al Abbas Industries – Steel, Chemicals and Fiber Board
  • Al Abbas Sugar Mills – Sugar and Ethanol
  • Azgard 9 - Composite denim
  • Pakistan International Container Terminals (PICT) - Port Operations and Container Handling
  • Pak American Fertilizer Limited (PAFL) - Fertilizer[19]

JS Property[edit]

JS Property is a holding company of JS Group. It invests in real estate projects.[20]

JS Transportation[edit]

JS Transportation has, to date, focused on the aviation business within Pakistan. JS Aviation was another division of the group set up in 2005. The company offered charter services in Pakistan under the name JS Air, using a small fleet of propeller driven Beech aircraft with a maximum capacity of about 20 passengers.

2010 Karachi Beechcraft 1900 crash[edit]

In November 2010 a JS Air Beech 1900 flying from Karachi to Dadu crashed shortly after takeoff killing all 21 people on board,[21] 17 of the passengers, including one from Italy, were employees of the multinational energy company Eni[22] and were heading to Bhit Gas field. Due to safety concerns after the accident, the company started losing customers to rivals, which eventually made operations unfeasible and led them to request withdrawal of their Air Operators Certificate (AOC) in March 2011,[23] JS Air was shut down on 5 January 2012, following continued financial losses.[24][25]

Acquisition of HSBC Pakistan[edit]

In 2012, JS Bank was likely to buy out HSBC Bank Middle East Ltd’s Pakistan branches and their assets. According to NASDAQ and The Wall Street Journal, HSBC Bank Middle East Ltd. had entered into an agreement to sell its banking business in Pakistan to JS Bank Ltd[26][27] However, in 2013, the JS Bank and HSBC Pakistan agreement fell through.[28]

Public relations and awards[edit]

The State Bank of Pakistan recently, 2nd year in a row has declared JS Bank as the number 1 primary dealer of government securities for the year 2011–12.[29] In 2011, JS Bank was ranked by State Bank of Pakistan for being the No 1 primary dealer.[30] In 2011, JS Bank organised the first ever day and night women T-20 tournament in Pakistan which was a roaring success.[31] In 2009, JS Private Equity was among 49 companies to receive an award at the 6th Annual Environment Excellence Awards, organised by National Forum for Environment and Health (NFEH).[32]

Controversies[edit]

Alleged unauthorized investment transactions[edit]

In 2007, a Sri Lankan newspaper published allegations against JS Group Company (JSGCL) for unauthorised investment transactions. The newspaper claimed that it achieved some inside information about the case.[33]The allegations said that JSGCL failed to comply with the requirement of the notification by non-providing the required information to its shareholders in the general meetings of the company.[33] The Securities and Exchange Commission of Pakistan (SECP) filed a criminal complaint against JS Group Companies on alleged manipulation of share price of Azgard Nine Limited (ANL). The complaint number "242 of 2013" filed in the Sessions High Court of Session Judge Karachi - South names the following JS Group Companies: JS Global Capital Limited, Jahangir Siddiqui & Co. Ltd., Jahangir Siddiqui & Sons Ltd., Jahangir Siddiqui Security Services Ltd. and JS Investments Limited. The SECP submitted terms of section 24 of the Securities and Exchange Ordinance, 1969 whereby the share price and volume of the ANL shares were artificially increased through criminal manipulation in terms of section 17. The complaint highlighted trading in 73 different sessions, taking place between 2 April – 13 July 2007 with unusual hikes in trading volume and the price of ANL shares were noticed on the Karachi Stock Exchange. [34][35]

The Sunday Leader report of "Massive Fraud and Insider Trading Uncovered in Pakistan" was denied by JSGCL in a Letter to the Editor.[36] Head of Media Relations, JS Bank Shaikh responded to allegations by the Sunday Leader regarding fraud and insider trading and termed the allegations as "absolutely false, misleading and concocted" and therefore, denied them. He also stressed that no report by SECP exists which alleges that JS Group was involved in insider trading and that no proper inquiry had been made by the reporter before publishing the news item which damaged the reputation of JS Group internationally.[37] On 14 June 2013 JSBL issued a clarification stating that "JS Bank Limited (JSBL) is not under any investigation by the Securities and Exchange Commission of Pakistan (SECP) in relation to shares of Azgard Nine Limited (ANL)."[38]

Notice against extraordinary bonus to non-exec director[edit]

On 1 April 2013, The Securities and Exchange Commission of Pakistan (SECP) served a notice to Jahangir Siddiqui & Company Limited (JSCL) for awarding over $4.3 million to the son of Jahangir Siddiqui namely Ali Jahangir Siddiqui, a non-executive director, under the head of advisory fee, upon the complaints of shareholders.[39][40]

On 5 April 2013, the JS Group responded to this in an article in Pakistan Today. According to JS Group spokesman, Imran Shaikh, the bonus paid to Ali Jahangir Siddiqui was "in conformity with international corporate standards." [41] According to Shaikh, the bonus received was earned by Ali Jahangir Siddiqui after he brought a "net-capital gain of Rs. 2.95 billion" into the organization.[41]

Case against Sprint Energy subsidiary[edit]

Four cases of committing acts of fraud, misappropriation and misrepresentation were registered against Sprint Energy (a company of JS Group) on 27 September 2013, for submitting fake 'No Objection Certificates' of SNGPL in November 2009 in order relocate four of its CNG stations in Punjab. JS and Sons (Pvt.) Limited hold 60% shares in the company.[42][43]

International operations[edit]

The group has offices throughout the major cities in Pakistan and manages its international operations from its London and Dubai offices. The group comprises businesses with over 23000 employees and profit after tax of $510 million in 2007.[44]

Partnerships[edit]

JS Group has formed partnerships with international organisations and brands to develop new businesses in Pakistan. Examples of JS Group partnerships in Pakistan include:

See also[edit]

References[edit]

  1. ^ Alam, Kazim. "JS Group: the empire built by selling the family car". The Express Tribune. Retrieved 2014-02-02. 
  2. ^ "JS Group : JS Group: Pakistan Financial Services". Js.com. Retrieved 2 December 2011. 
  3. ^ JS Group : About JS Group. Js.com.
  4. ^ Non-Banking Finance Companies | Accountancy Education Article. Accountancy.com.pk.
  5. ^ Jahangir Siddique & Company Limited – Annual Reports. PakSearch.com.
  6. ^ The Pakistan Credit Rating Agency Limited. PACRA.
  7. ^ http://www.js.com/uploads/JSCLHalfYearlyReportDecember312011.pdf
  8. ^ http://www.js.com/uploads/JSCL1stQtrReport30Sep2011.pdf
  9. ^ Annual Report: http://www.js.com/uploads/JSCLAnnualReport2012.pdf
  10. ^ a b "Growing with Strength: Annual Report 2013" (PDF). JSBL. 
  11. ^ JS Bank declared No 1 PDs. The Nation (6 July 2012).
  12. ^ Pacra upgrades JS Bank ratings. The Nation (30 June 2012).
  13. ^ JS Bank Limited | Pakistan | Company Profile. Securities.com (30 December 2006).
  14. ^ Brand Management (BRAND AUDIT) BankIslami. Scribd.com.
  15. ^ Corporation, Nexus. (6 February 2012) JS Group: Financial Business Unit. Jahangir-siddiquigroup.blogspot.com.
  16. ^ About Us. BankIslami.
  17. ^ Bank Islami Pakistan Limited | Pakistan | Company Profile. Securities.com.
  18. ^ JS Investments announces Total Payout of over Rs. 1.2 billion in Open End Funds for FY11 – Press Release Pakistan. Pressrelease.pk.
  19. ^ http://www.js.com/pakistan-industry.asp
  20. ^ "JS Group : Real Estate Industry in Pakistan – JS Property – JS Group". Js.com. Retrieved 2 December 2011. 
  21. ^ Small plane carrying 20 crashes. Tribune.com.pk.
  22. ^ Eni official press release on air crash in Pakistan. Eni.com.
  23. ^ JS Air surrenders operating license. Flightglobal.com.
  24. ^ Constant loses forces JS Air to close its operation in Pakistan. NewsPakistan.PK.
  25. ^ Grounded for life: One year after crash, JS Air finally closes its doors. Tribune.com.pk.
  26. ^ NASDAQ http://www.nasdaq.com/article/hsbc-to-sell-its-business-in-pakistan-20120910-00884
  27. ^ HSBC Bank Middle East to Sell Banking Business In Pakistan To JS Bank – WSJ.com. Online.wsj.com (10 September 2012).
  28. ^ http://www.thenews.com.pk/Todays-News-3-209727-JS-Bank-HSBC-Pakistan-deal-falls-through
  29. ^ ePaper. The Nation (19 July 2012).
  30. ^ http://www.sbp.org.pk/press/2011/PrimaryDealers-28-Jun-11.pdf
  31. ^ JS Banks womens T20 tournament. The Nation (29 June 2011).
  32. ^ 49 companies awarded on best environment performance. – Free Online Library. Thefreelibrary.com.
  33. ^ a b "Massive Fraud And Insider Trading Uncovered in Pakistan | The Sunday Leader". Thesundayleader.lk. Retrieved 2 December 2011. 
  34. ^ Pakistan Today, 17 April 2013
  35. ^ Business Recorder, 17 April 2013
  36. ^ "Right of Reply | The Sunday Leader". Thesundayleader.lk. Retrieved 2 December 2011. 
  37. ^ Right of Reply
  38. ^ "JSBL Clarification". Daily Times. 14 June 2013. 
  39. ^ The Nation. 2 Apr 2013
  40. ^ Dawn, 2 April 2013
  41. ^ a b "JS Group says Ali Siddiqui received $4.3m bonus for PICT heroics". Pakistan Today. 5 April 2013. Retrieved 15 May 2014. 
  42. ^ GM Jamali. "Huge scandal: CNG stations scam unearthed". The Express Tribune. Retrieved 2014-01-31. 
  43. ^ Abdul Rasheed Azad (2013-09-28). "Relocation of CNG stations: cases registered against energy firm for using fraudulent means". Business Recorder. Retrieved 2014-01-31. 
  44. ^ "JS Group : About JS Group". Js.com. Retrieved 2 December 2011. 
  45. ^ "JS Group : Partnerships". Js.com. Retrieved 2 December 2011. 

External links[edit]