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History and Prospects:
ORIX Leasing Pakistan Limited began operations in January 1987, as a joint venture
between ORIX Corporation, Japan and local sponsors. ORIX Corporation is Japan͛s
leading diversified financial services institution with assets in excess of US$ 50 billion
and subsidiaries and associates in 21 countries. Following the footsteps of its Japanese
parents, OLP has played a major role in promoting the leasing industry Pakistan. Its
strength lies in an extensive branch network, a diversified portfolio of over 3000 clients,
a wide range of financial products, personnel development and office automation.

Operations:
Since the start of operations in January 1987, the Company has written leases totaling
Rs 15.54 billion. The Company has an asset base of Rs. 6.1 billion, net worth of Rs. 926
million and earned a pretax profit of Rs. 156 million for the year ended June 30, 2000.
The Pakistan Credit Rating Agency has rated the Company͛s short and long-term debt as
A1+(A one plus) and AA- (double A minus) respectively. The Company enjoys the highest
Credit rating in the leasing sector. The Company͛s Head Office is in Karachi with
branches in Lahore, Islamabad, Peshawar, Faisalabad, Hyderabad, Multan, and Sialkot.
The company serves as the regional base for ORIX Group͛s activities in the Middle East
and North Africa. It manages joint venture leasing companies in Oman and Egypt. The
Company has recently established a joint venture leasing company in the Kingdom of
Saudi Arabia. The Company is also a founder shareholder of ORIX Investment Bank
Pakistan Limited.

Business Activities:
The Company͛s main business is leading of moveable assets primarily industrial
machinery, commercial vehicles and passenger cars. The Company provides lease
financing to both large and small businesses. Lessees include public and private limited
companies, partnerships, and sole proprietorships. The Company specializes in providing
lease financing to small and medium size businesses. The Company has also been active
in micro enterprise financing since inception and has been given special lined of credit
for micro enterprises by multi lateral institutions, which include the World Bank, FMO
(The Netherlands Development Finance Company) and the Swiss Development Agency
›
Other business areas:
While lease financing remains the Company͛s core business, ancillary financial services
have also been added to its product range. These include installment loans for
household appliances to corporate employees, auto leasing to salaried employees, self-
employed professionals and businessmen, and provision of vehicles and equipment on
operating lease.

OLP͛s current portfolio of financial services includes:

^

 

Providing industrial commercial machinery and transportation equipment to corporate
sector.
^ 
 

Allowing corporate employees to acquire domestic appliances.
   
Vehicle leases for individual and corporate clients.

  
Providing productive assets on short-term rental basis.


 


Financing for cottage industries and unorganized sector entities.
^

  ^
Offering investment plans matching the needs of our valued customers.

rtrategic Focus
The Company͛s business strategy is to concentrate on providing lease finance to small
and medium sized enterprise. This has resulted in a high degree of risk diversification
through sectoral and asset class diversification with risk spread over a large client base
with lower per party exposure. At the same time, the Company also competes actively
in the big-ticket lease market where target lessees comprise local and multinational blue
chip corporate.
Product Development
Since inception, the Company has primarily developed its leasing business and ancillary
products such as consumer finance, rental of equipment and operating lease.
Accordingly, a high degree of expertise has developed amongst the Company͛s staff in
the various leasing products. This technical expertise of the Company͛s management is
being fully utilized in the various job placements in the joint venture abroad.

Assets Class and rtrategic rhifts

Economic slowdown and low capital formation has resulted in weak demand for plant
and machinery. To make up for the decline in machinery leasing, the Company has
shifted emphasis to vehicle leasing over the past three years and this has been the
business focus since then. Vehicles provide greater comfort in the event of default due
to their high resale value, as under current market conditions, plant and machinery has
low residual values.

Diversification
A major strength of the Company is its ability to maintain a highly diversified portfolio
with low single party exposure. The Company will continue to target it͛s niche market of
small to medium size lessees with low exposures and will only entertain big-ticket leases
where spreads are reasonable and credit risk is good. The Company has eight marketing
offices located in the Country͛s major industrial cities. To further extend it͛s market
reach, the Company uses its existing offices to source business in adjoining cities
through
periodic visits by marketing teams and intends to continue this strategy, as marketing
results in smaller cities have been good.
To further diversify revenue sources, the Company has entered into related ancillary
businesses of consumer finance and auto lease for individuals. The Company started
operating lease two years ago and is now among the market leaders in providing
generators and communication equipment on short-term rental basis. Recognizing the
potential for investment banking in Pakistan, OLP established ORIX Investment Bank
Pakistan Limited (OIBP) in 1995.
The Company͛s policy on internal diversification is to enter into fields closely allied to
leasing to reduce risk and make best use of available expertise within the ORIX Group of
companies.
Area of Activity
 

Leasing remains the Company͛s main activity. However, the Company has diversified
into different areas of leasing such as operating lease, factoring, hire purchase and
consumer finance, etc.

  

Non-Fund based activities include technical advice which the management of the
Company has been providing to its associated companies in the region.

! 

 " 

The Company offers Certificates of Investment (COIs) with varying maturities ranging
from 3 months to five years.
A key factor in the Company͛s profitability has been its ability to raise finance for its
business at competitive rates. The Company͛s sources of funds are diversified and
continuous efforts are made to broaden this base and ensure that the ratio of short
term to long-term funds remains satisfactory.
The Company͛s long term funding has traditionally been provided by multilateral
lending institutions while local financial institutions have provided the Company with
medium and short term funds. Company͛s long term financing sources include:

International Finance Corporation

Asian Development Bank
FMO (Netherlands)
IBRD (World bank)

The Company follows a conservative policy of ensuring that the average maturity of its
borrowing exceeds the average maturity of its lease portfolio. The Company aims to
earn sufficient spread to enable the Company to be cushioned against major shifts that
might occur in future interest rates
£se of Proceeds
The TFCs are being issued for purposes of writing new leases and other business as
permitted under the Company͛s Memorandum & Articles of Associations. The
Company͛s lease disbursement in the past two years (1999 & 2000) exceeds Rs. 4,849
million and in 2001 exceed 5.1 billion and the business requires term financing since
leases being written are for three years or longer period. The total amount of Rs. 700
million realized from the present issue (first tranche) will be used to finance new
business volumes. The Company has traditionally relied on International and domestic
lending institutions to meet it͛s medium to long-term funding requirements and the
Company sees TFC͛s as a instrument to diversify its funding sources.

Relationship with ORIX Group

A significant factor in OLP͛s development over the past decade has been the
harmonious relationship and complete understanding between its foreign and local
sponsors. This partnership is a model for successful joint ventures, where foreign
shareholders provide the technical know how and local partners support through
funding and market knowledge. With cohesion at Board level, management is left free
to pursue development of the Company.
OLP enjoys good relations with the ORIX Group, enabling it to capitalize on the expertise
of other Group companies. Over the years, OLP͛s staff has visited Group Companies in
Japan, Thailand, Singapore, Malaysia and Australia under an exchange program, which
sends one or two employees of OLP for overseas training every year. OLP also
contributes to the Group by referring business and investment opportunities in Pakistan
to Group companies. The Company anticipates doing the same in other Middle East
countries as it expands its international presence.
c › ›

#  $ 
›
 !% ^  &' !%
Oman ORIX, in which ORIX Leasing Pakistan Limited holds 20.25% of equity and provides
management support, continues to show strong growth in volumes and profits. IN 1999,
net profit after tax rose by 26% to Rial Omani (RO) 684,989 (Pak Rs 92.33 million) from
RO 542,403 (Pak Rs. 73.1 million) enabling the Company to declare a dividend of 10%
and a bonus of 2.45%. Purchase cost of new business written during the year increased
to RO 16.9 million (Pak Rs.2.28 billion) compared to RO 13.6 million (Pak Rs.1.84 billion)
last year and gross lease receivables increased by 33% to RO 24 million (Pak Rs.3.24
billion). As at December 31,1999, Oman ORIX had total assets of RO 22.3 million(Pak Rs.
3.0 billion) and a net worth of RO 5.397 million (Pak Rs.727.47 million).
For the year ended June 30, 2000, the Company earned a pre-tax profit of RO 455,719
(Pak Rs.61.4 million) and increased its asset base to RO 29.19 million (Pak Rs.3.9 billion).
Oman ORIX leases all type of assets including motorcars, construction, earthmoving and
transportation equipment, information technology equipment and plant and machinery.
The Company͛s lessees include individuals; small and medium size companies and large
sub contractors in diverse economic sectors including services, trading and contracting,
construction and manufacturing.
Oman ORIX͛S Head Office is in Muscat and during the year the Company extended its
geographical reach by opening branches in the cities of Sohar and Salalah.

!% &!%&
ORIX Corporation, Japan and ORIX Leasing Pakistan Limited each hold 23% of ORIX
Egypt͛s equity. The Company started operations in November 1997 and has established
a good business base.
For the year ended December 31,1999, ORIX Egypt͛s profit before tax of Egyptian
Pounds (EP) 2.04 million (Pak Rs. 30.8 million) was more than double last year͛s profit of
EP 0.9 million (Pak Rs, 13.6 million). Business volume increased by 57% with
disbursements of EP 38.3 million (Pak Rs. 577.9 million compared to EP 24.4 million (Pak
Rs. 368.2 million) last year. Gross lease receivables increased to EP 47.7 million (Pak Rs.
719.8 million) from EP 30.5 million (Pak Rs.460.3 million). The Company continued to
focus on needs of small and medium sized businesses, which enables it to diversify risk
and earn good spreads.
!% ^  &!%
Saudi ORIX is under formation and is expected to commence operations by the end of
this year. The Company will be a pioneer of leasing in Saudi Arabia. As the largest
economy in the Gulf with the biggest oil production in the world, Saudi Arabia offers
immense potential for leasing.
Saudi ORIX Leasing Company will start with a paid up capital of Saudi Riyal 60 million,
equivalent to approximately Rs.900 million at current exchange rate. ORIX Leasing
Pakistan proposes to take 10% equity in the new venture together with other
sponsoring shareholders ORIX Corporation, Japan (20%), International Finance
Corporation (10%), Saudi Investment Bank (30%) and a private business group consisting
of eminent Saudi bankers and businessmen (jointly holding 30%).
Ô › › ›  ›
!%   ()( 
ORIX Corporation, Japan and ORIX Leasing Pakistan Limited hold 20% and 15%
respectively of OIB͛s equity. For the year ended June 30, 2000 OIB͛s profit before tax
rose by 37.5% to Rs.44.28 million from Rs.32.2 million last year. The bank continues to
concentrate on maintaining a high quality loan portfolio while seeking to improve fee-
based income from advisory services. OIB is primarily engaged in providing a range of
investment banking products, which include corporate advisory services, project
packaging, structuring and placement of capital market debt products, issuance and
discounting of bankers acceptance and treasury operations. At June 30,2000,OIB had
total assets in excess of Rs. 1.46 billion.

Board of Directors:
Mr. Yoshihiko Miuauchi Chairman
Mr. Shakirullah Durrani Vice Chairman
Mr. Takeshi Sato Director
Mr. Masatoshi Yokota Director
Mr. Muhammad Mazharuddin Director
Mr. Shaheen Amin Director
Mr. Mohammad Qamrul Haq Director
Mr. Humayun Murad Chief Executive

Branches of ORIX Leasing Pakistan Limited

Head Office is in Karachi. There are total 8 branches of ORIX. Which are as follows:
1. Karachi (Head Office)
2. Lahore
3. Islamabad
4. Faisalabad
5. Sialkot
6. Peshawar
7. Multan
8. Hyderabad
X    ››
›
›
  › ›

There are total 11 departments in Karachi Head Office of ORIX Leasing Pakistan Limited.
Which are as follows:
1. Marketing department
2. Credit department
3. Business Control department
4. Rental Recoveries
5. Administration department
6. Human Resource department
7. Finance & Accounts department
8. Treasury department
9. Rental Collection department
10. Information System development
11. Hard Ware Section
12. Consumer finance services
13. Auto lease
14. Operating lease

=arketing department
The principal responsibilities of the marketing department are identify customer need
for credit, carry out credit analysis, prepare detailed report on lessee͛s financial position
and submit it to higher-ups for approval. Involve in searching and developing new
clients and manage good relationship with them.
They also evaluate the documents submitted by the customers prepare the files
(approval and payment) and then send it for checking to the Business Control
department

Credit department
This department define broader based credit polices for the Company. By evaluating
different environmental conditions it set guidelines for credit evaluations. Mostly big-
ticket files credit analysis is done
Business Control department
The legal documents, which are signed by the customers, are re-checked here. They also
maintain the record of these documents. They handle the matters related to insurance
of the asset such as arrangement of insurance, insurance claims etc.

Rental Recoveries
The cases, which require special handling regarding recovery of overdue rentals, go to
rental recoveries department. The recovery process is carried out by various means such
as:
Repossession of vehicle
Legal action
By customer consent

Administration department
They handle all the office matters related with office administration such as office
vehicle maintenance, utilities bills, rents of offices, renovation of offices, maintenance of
office equipment, arrangement of inter branch tours etc. In short it can be said that it
deal with all the general administration matters.

Human Resource department

This department involve in the activities such as planning of the human resource,
development of the human resource, annual reviews for promotion, for employment
made broad based policies, evaluate employees and nominate for different courses,
arrange orientation for new employees, formalized job description, set employees
packages etc.
This department also set rules and regulation for the employees and employer or
redefined them. Also it deals with the hiring and firing of the employees. In short we can
say that it deals with all the affairs related with the employees of the company such as
salaries, promotions, annual leaves, bonuses, employees in house training sessions etc.

Finance and Accounts department

It maintains company͛s accounts records. It maintains the record of all the business
transactions. It operates the company͛s bank accounts and maintains the record of
payments and receiving.
This department arranges internal audits. It also facilitates external audits by State Bank
of Pakistan or by different audit agencies.
àreasury department
This department manages and arranges the financial resource for the company as and
when required. The finance is required for the disbursement activities. It also manages
the holding financial resources of the company. So the basic function of this department
is the money management.
On branch level it facilitate the account opening or provision of over draft. Also it
handles the repayment of the loans, which are taken by the company.

Rental Collection department

This department involves in the activities like physically collecting the rentals on due
dates and updates the records by feeding the date about the rentals collection.
Branches send statement of deposits to this department and it is then feeded it in the
computer and debt notes are generated.

Information rystem Department

ë  *
     


This department is responsible for the development and continues up gradation of
the information systems. On the basis of data generated at different locations this
system generate required reports.
The integrated computer system has the information about customers history,
customer grading, contract information, rental repayment records, customer
exposure, salary database etc.
Presently it is working for connecting all the braches on line. Recently on very
shorter scale they are developing software for different companies on their demand.

+
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They are responsible for the replacement of the hard ware of the computer also they
repair if there is any fault occur in the hard ware of the computers.
Consumer Finance rervices
This department gives household appliances on hire purchase basis to the individuals
such as refrigerators, microwave ovens, computers, bikes etc. In the beginning they
have provided this service to the employees of the multinational companies such as PIA,
Engro chemicals etc. Companies gave undertaking that the rentals will be deducted form
the salary of the employees and it will be paid to ORIX in one check. But now this service
can also availed by the general public.

Auto lease
They finance automobiles to individuals including businessmen; corporate employee
and self employed professionals. The lease period is 3 to 5 years and insurance is
included in the rentals. They provide different features of insurance such as the
individual life insurance are also included in it.

Operating lease (Rentic Division)

This department provides various types of assets on rental basis such as:
Power generators
Air compressors
Satellite equipment
Delivery vans
Luxury buses
Transportation vehicles

ORIX has wider range of diesel and gas power generators. It gives them on short-term
lease. It gives air compressors on lease to civil aviation. Satellite equipment is used for
wide area computer networking it gives it to different companies and banks. Delivery
vans are given on lease to different distribution companies on daily bases. Luxury buses
are given on lease to different multinational companies. Transportation vehicles such as
big containers and traulas are given on lease to different companies for moving their
goods.
For every type of asset there is separate asset manager. These asset managers are
appointed by the companies or firms or business houses, which are expert in
maintenance of these assets.
Benefits of operating lease


, 
 
As the asset is returned to ORIX at the end of the contract, the transaction is a pure
operating lease, therefore it remains off balance sheet thus improving the return on
assets. No capital budgeting is required.

 *
! 
As the asset is not completely depreciated therefore it carries higher residual value,
which results in lower rentals for the user as the financial costs are significantly reduced.

$


Operating lease can bundle together various services required with the asset such as
maintenance, operation, insurance and replacement of the asset in one value added
package.

^ "
The package can be tailored for the requirements of your organization.

! 


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Operating lease allows your business greater flexibility in terms of utilization of the
capital and insulates your business against the risk associated with capital investments.
Furthermore operating lease allows you to:

Complete solution as per user demand

Hedge against technological obsolescence and inflation
Asset without investment
Better utilization of tax benefits
Conservation of credit lines
Time to concentrate on core business
Take advantage of the lessor͛s purchasing power
Historical success
In the recently closed financial year they got the historical success by achieving
disbursement of Rs.5 billion. The major reasons for this success were availability of
cheaper funds due to which they have low rates, they have offered new products in CFS
and operating lease, they start providing factoring services and they have exploit new
markets

Comparison with competitors

ORIX is providing diversified financial services to its customers. They are providing
corporate lease, auto lease, operating lease, consumer finance services, term finance
certificates and hire purchase.
They are providing much better rates in leasing as compared to their competitors
because cheaper funds are available to them. It is a multinational company and has a
good reputation in the financial market due to which they can get better funds in the
local money market.
They believe in providing personalized services to their customers. The person who
generates business he has to build good business relations with the customers. Similar
person deals with the customer from taking of the lease proposal to follow up so he is
building a long-term relation with a customer. Also ORIX is providing doorstep services
to its customers.

Critical ruccess Factors

Today OLP occupies a leading position in the leasing industry. The company͛s success
may be attributed to its:
Marketing expertise
Funding ability
Branch network
Technical ability based on the world wide experience of the ORIX group
F£à£RE PLANr OF ORIX LEArING PAKIràAN LI=IàED
Presently they have entered into a strategic alliance with United bank limited to
introduce leasing business in previously untapped areas. As per the scheme ORIX will
establish its counters in selected UBL branches in the cities where ORIX does not has its
own offices. In the first phase such 5 counters will be established in Rahim Yar Khan,
Bahawalpur, Sargodha, Sahiwal and Gujranwala. The operations will eventually be
extended to other locations.
Moreover ORIX plans to increase its business and profitability by introduction of new
products, expanding the operating lease and CFS business etc.

›
›  › ›  ›
 ›
ORIX Leasing Pakistan Limited Multan Branch established in February 2001 on LMQ
Road Trust Plaza.
Multan Branch is offering three types of leasing.

1. Corporate Lease
2. Auto Lease
3. Hire Purchase

Corporate Lease
In this lease the asset is leased in the name of the Company. In Corporate lease they are
offering finance against these assets:
1. Automobiles
2. Machinery
3. Office equipment
In corporate lease there are two modes of leases:
1. Direct Lease
2. Sale and Lease back agreement
Direct lease is mostly of Automobiles and office equipment. In this case ORIX buys the
asset to be leased directly from the vendor and then leases it to the lesse.
In sale and lease back agreement they are giving mostly machinery. In this case ORIX
lease on the cost of the machinery custom duties are berried by the customer. So
customer purchase machinery himself and sell it to ORIX than from ORIX he leases it
back.

. 
  


In all cases, the lessee determines selection and price. Upon approval of a lease, ORIX
purchases the equipment to the lessee͛s specification, and pays the vendor in full when
the equipment has been delivered and accepted by the lessee.
)& 
Rental payments are usually due in advance. A deposit is usually required at inception of
the lease contract. Lease can be structured on lessee requirement such as monthly or
quarterly payments, for advance or arrears payment, equal or uneven payment.

 , 
The minimum lease term is 3 years and this can be extended to five years depending on
lessee͛s requirements

-
  
At the expiration of lease, several options are normally available to the lessee:
The equipment can be returned to ORIX
The lease can be renewed on a year-to-year basis at a greatly reduced annual cost
The lease may purchase the equipment at the residual value of the asset.
In corporate lease there is option that the asset either insured by ORIX or by the lessee.
The interest rate and the deposit rate in corporate lease are set by negotiation with the
lessee. The minimum down payment is 10%.

Auto Lease:
Auto lease program was launched in January 1997 with all the cars dealers
manufacturers through their authorized dealers in order to market individuals falls
under three categories as follows:
1. Corporate Employee
2. Self-Employed Person (Professional)
3. Businessman
In auto lease brand new cars are leased to the individuals. Maximum leased period is 3
to 5 years. The insurance of the asset in this case is arranged by ORIX. Minimum down
payment is 20% and minimum interest rate charged is usually from 19% to 23%.
Hire Purchase:
Hire Purchase is same as lease the only difference is lease period, which is less than 3
years. In higher purchase automobiles, household durable is given on installment,

+ &)

,)
ORIX Leasing Pakistan Limited on 2nd July 2001 launched Honda Easy Purchase Plan with
the cooperation of Atlas Honda in all eight cities where it has its branches.
They are offering Honda CD 70 and Honda CG 125 with a minimum down payment of Rs.
25,000. Lease period is 1 to 3 years and this plan is offered to both salaried person and
businessman.

Departments in =ultan Branch

There are two departments in the Multan Branch.
1. Credit and Marketing department
2. Accounts department

Credit and =arketing department

In credit and marketing department the designation of the working staff is credit and
marketing officer. At presently only one person is working in this department other
three persons are yet to be appointed.
Credit and marketing department is responsible for achieving assigned targets and in
developing business. Ensure recovery of over dues and maintenance of relevant records.
Principal activities of the department include:

 /   ›
Credit and marketing people strive to generate corporate clients for the company and
define strategies to retain them.

à


,  ›
These people work as a team member to assist team leader in achieving the targets.
  *0 
They collect and follow up rentals in order to assist Rental department in their
operations.

!
 
They prepare various reports and documents to submit them to concerned authorities
for further proceedings.

^


They coordinate with team leader for credit approval.
The people working in the credit and marketing department identify the customer need
for credit, carry out credit analysis, prepare detailed report on lessee͛s financial position
and submit it to higher-ups for approval. Involve in searching and developing new
clients and manage good relationship with them. They try to contribute and meet
targets as a part of a team. Interact with Rentals department for daily rental updates.
Responsible for recovering rentals on due dates and overdue rentals as well. Prepare
credit analysis report of lessee, complete lease execution documents for credit approval
and contract execution. Submit lessee͛s financial standing to top management for the
credit approval.

Accounts department
The designation of the person working in accounts department is ͞Assistant Accounts͟.
At this time only one person is working in this time. The main responsibilities of the
assistant account are as follows:
Cash and cheques holding and preparation of relevant registers and statements
Purchase of stationery for office use.
Makes statement of deposit.
Paper filling of contract and confidential files.
Dealing in other branch expenses such as telephone, electricity, courier service, petrol
and hotel bills payment.
Maintenance of contract papers.
›››
Process of lease consist of following steps:

Contact of customer for lease information

First of all the company in case of corporate lease or the individual in case of auto lease
contacted the ORIX for getting information about the lease options and terms.
Marketing and credit officer give this information to the customer. He gives them lease
proposal in which terms of lease are mentioned about their selected lease option. In
other case marketing and credit officer himself contacted the company or individual and
give them the lease proposal.

Approval of Lease proposal

If the company or individual accepts the terms and conditions of the lease proposal they
give the lease acceptance to ORIX.

rubmission of the required documents by the customer

Marketing and credit officer ask customer to submit the required documents for getting
asset on lease which are as follows:


  &

1. Copy of National Identity Card
2. Copy of recent Utility Bills (Residential) in his / her name
3. Copy of last six months Bank Statement
4. Copy of Ownership Documents or Rent Agreement of the residence
5. Original / Copy of recent Pay slip
6. A letter from employer confirming:-
Date of joining
Designation
Salary Package

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 )
 1(/

2*&
›
›
›
1. Copy of National Identity Card
2. Copy of Ownership Documents or Rent agreement of the residence
3. Any of the recent utility Bills (Residential)
4. Copy of Professional Degree
5. Copy of Membership Evidence in case the applicant is a member of any
professional organization
6. Financial statement (audited) or Management Accounts, If audited Financial
Statement are not available.
7. Copy of Last two years Tax Assessment Statements.
8. Copy of Last Six month͛s Bank Statement


   

1. Copy of National Identity Card

2. Copy of Ownership Documents or Rent agreement of the residence
3. Any of the recent utility Bills (Residential)
4. Copy of Last two years Tax Assessment Statements.
5. Copy of Last Six month͛s Bank Statement
6. Copy of Driving License


 ^



1. Copy of National Identity Cards

of all partners (if partnership)
2. Copy of Last two years Tax Assessment Statements.
3. Copy of last three years audited accounts (Balance Sheet, Profit & Loss Account)
4. Copy of Last Six month͛s Bank Statement
5. Copy of Form ͞29͟
6. Copy of Form ͞A͟
7. Copy of Certificate of Incorporation
8. Copy of Ownership Documents or Rent agreement

+ &)

,) ,
 

.


1. Copy of individuals NIC

2. Copy of driving license
3. Copy of last six months paid utility bills
4. Two fresh snaps
5. Copy of NIC of two guarantors
6. Copy of last six months bank statements
7. For salaried persons copy of their appointment letter and salary certificate.
8. For businessmen copy of tax return of their last assessment.
9. Bank manager͛s certificate.
10. If the business is on rent then their deed of rent or ownership documents.

Analysis of the credit worthiness of the customers

After the submission of the documents by the customer credit worthiness of the
customers is evaluated for giving them asset on lease.
Individuals (employee) credit worthiness is evaluated from their salary slip and bank
statements. From these documents they come to know the monthly income of the
customer and deposited amount in the bank account.
Individuals (businessman) credit worthiness is evaluated from the bank statements they
gave from the bank statements they done the volume test to calculate their monthly
average revenue. Also marketing and credit officer personally visited the customer͛s
business place to verify the information provided by the customer.
Corporate customers credit worthiness is evaluated from the financial information
provided by them. From their financial statements (balance sheet, income statements
etc;) ratios analysis are conducted to measure the financial strength of their business.
c›› ›››
›

Credit limit, which can approve by different persons, is as follows:

Designation Credit Limit
Assistant Manager 500,000
Manager 1.5 million
SR. Manager 2.5 million
A.G.M 3.5 million
Director marketing 5 million
Managing director 10 million
Executive committee 30 million
Board of Directors Above 30 million
Final procedures:
After approval of the lease legal documents are prepared and signed by the lessee and
lesser. Deposit is taken from the lessee and purchase order is issued to the vendor in
case of direct lease. In case of sale and lease back first vendor issue sale invoice and
cash receipt to the lessee, lessee gave these documents to ORIX and issue sale invoice to
ORIX. ORIX then issue purchase order to lessee and leased the purchased asset to
lessee. After this lessee rentals are started which can be in advance or in arrear.
In corporate lease two types of files are prepared

1. Approval file
2. Payment file



In approval file documents relating to credit evaluation and are kept.
Lease Application Form
Summary lease report
Annual Reports
Lessee information sheet
Volume test
Bank statements
Tax Returns
Property documents
Purchase certificate
Checklist for lessee

)& 
In payment file all legal documents are kept such as lease contract, promissory note,
acceptance receipt, undertaking indemnity for the use of the asset, for import, taxes,
duties and other charges, for insurance premium, also it include guarantee and
indemnity, execution slip, all rental receipts and all other memos related to the leased
asset. In case of auto lease there is only payment file and all document are kept in it.
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In future they want to offer more lease options to its customers such as they want to
offer operating lease and consumer finance services. For operating lease they intended
to target textile sector in which they plan to provide power generators on lease there is
a much potential in this sector. Also they plan to target pharmaceutical sector because
lots of hospitals are establishing in the surrounding areas of Multan so they wanted to
provide medical machinery on lease to them also they wanted to target doctors market
for automobile lease which is presently dominated by Al-Falah financing.
They want to provide consumer finance services to multinational companies in this area
such as PARCO and CAPCO. They want to make contracts with them that ORIX will
provide household appliances, automobiles etc on lease to their employees and the
company will deduct rental form the salary of their employees and paid it to ORIX.
Also Multan Branch always wants to remain ahead of their annual business targets set
by the company. Multan office also planning to expand operation geographically to the
surrounding areas i.e R.Y.K, Bahawalpur and other cities.

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ORIX Leasing Pakistan Limited

1, =ultan Branch Ground Floor, Trust Plaza LMQ Road, =ultan Tel:
061- 4518431. Fax: 061-4580321