You are on page 1of 11

By

ORIX Auto Infrastructure Services Limited (OAIS)

Background
OAIS is an equal JV between IL & FS, India and ORIX Corporation,
Japan

Promoted by the Central Bank of India, Housing


Development Finance Corporation Limited and Unit
Trust of India, IL & FS is one of Indias leading
infrastructure development and finance companies
The company is a leading participant in the Indian
financial services sector & operates across a wide
array of business areas focusing on the
commercialization and development of infrastructure
projects in India
As on March 31, 2010, the company had an asset base
of ~INR 55 Bn and total income of ~INR 9 Bn

Established in 1964, ORIX Corporation is an


integrated financial services group based in Tokyo,
Japan, providing innovative value-added products
and services to both corporate and retail
customers
With operations in 26 countries, ORIX activities
include leasing, corporate finance, real estaterelated finance and development, retail brokerage,
loans & financial product distribution and
investment banking
As on March 31, 2010, the company had an asset
base of ~USD 90 Bn and total income of USD 11.5
Bn

The strong shareholders provide the necessary resources & support to


foster growth
2

Basic Understanding of Leasing


Lessor : ORIX Auto Infrastructure Services Limited
Lessee : Myntra Designs Pvt Ltd
Under Leasing, the asset is owned by the Lessor and given on use to Lessee.
The Lessee pays Lease Rentals for the agreed tenure of Lease.
For the purpose of the Motor vehicles Act all the vehicles will be registered in the name of
Myntra & will be hypothecated to ORIX.

Transaction
ORIX will fund for the 100% of the cost of the vehicle.
Buy back value ( Residual value ) is 5%
Tenure options :- 24/36 Months
Maintenance will be taken care by the employee.
At the end of the lease tenure the asset will be bought back by the employee at agreed
Residual Value(RV) inclusive of taxes.
Insurance for the entire lease tenure will be managed by ORIX and the premiums will
be paid by the employee on actuals
Employee has option to choose accessories which can be funded by ORIX.

Process Flow
STEP - 1

STEP - 2

STEP - 3

STEP - 4

Employee to log in the request with


Finance/HR
Based on the received request, ORIX will negotiate with
the dealer/s on availability & discounts.
ORIX to complete the internal documentation with Myntra
and issue order confirmation to the dealer in 3 working
days.
ORIX to share the Repayment Schedule upon
delivery of the each vehicle

Benefits of Lease over Loan


TOTAL PAYOUT COMPARISON BETWEEN LOAN Vs LEASE
Loan
Lease
Model
Exshowroom Price
Road Tax & Registration
Downpayment in LOAN
Finance Amount
Loan EMI
Lease Rentals with VAT
RV with VAT
Gross Payout in loan / lease
Total Payout on loan / lease with RV
(Incl of D/P in loan & R V in Lease)
Tax savings on loan / lease
Total Payout

Benefit of Lease over Loan

Honda City VMT


945200
157384
251904
850680
27786

1000287

945200
157384
0
1102584
0
37233
49325
1340378

1252191
0
1252191

1389704
402114
987590

264601

Benefits of Lease over Loan

Salary Cost Year 1


Car Cost - EMI Lease (37233 *12)
Total CTC
Tax
Downpayment
Car Loan repayment (27786 *12)
Net in Hand

Salary Cost Year 2


Car Cost - EMI Lease
Total
Tax
Car Loan repayment
Net in Hand

Salary Cost Year 3


Car Cost - EMI Lease
Total
Tax
Car Loan repayment
Residual Value
Net in Hand

Take Home -1
Take Home -2
Take Home -3
Total

Benefit

of Lease over

Car under CTC with


1053207
446793
1500000
315962
0
0
737245
Car under CTC with
1053207
446793
1500000
315962
0
737245
Car under CTC with
1053207
446793
1500000
315962
0
49325
687920
Car under CTC with
737245
737245
687920
2162410

Lease

Lease

Lease

Lease

Car Taken Under


1500000
0
1500000
450000
251904
333429
464667
Car Taken Under
1500000
0
1500000
450000
333429
716571
Car Taken Under
1500000
0
1500000
450000
333429
0
716571
Car Taken Under
464667
716571
716571
1897809

264601

Loan

Loan

Loan

Loan

Insurance Management Assuring smiles all the way

ORIX offers Comprehensive Insurance through its preferred insurance vendor


ICICI Lombard with advantage of Zero depth for selective models and cars.
Edge on services being priority client.
Extremely transparent transactions & lowest insurance premiums.
Timely renewal management.

Early termination

What will happen to the lease if the


employee quits the organization in
between the lease tenure?

Option : 1 - The lease is terminated on the o/s principle or the agreed residual
value & ownership will be transferred ( VAT applicable on all sale transactions)
Option : 2 - The Lease can be transferred in the users name on his cessation of
employment.
Option : 3- The lease can be transferred in the name of the new employer if ORIX
is existing leasing partner .

Orix Business Partners

10

Thank You. . .