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    Car Lease Policy Myntra

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    ertytrythyty
    This document provides information about ORIX Auto Infrastructure Services Limited (OAIS), a joint venture between IL&FS, an Indian infrastructure company, and ORIX Corporation, a Japanese financial services group. OAIS provides vehicle leasing services. The document outlines the benefits of leasing over taking a loan to purchase a vehicle, such as lower total cost and tax savings. It also describes the leasing process and options for early termination if an employee leaves their organization before the lease ends.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Car Lease Policy Myntra

    Uploaded by

    ertytrythyty
    757 views11 pages
    This document provides information about ORIX Auto Infrastructure Services Limited (OAIS), a joint venture between IL&FS, an Indian infrastructure company, and ORIX Corporation, a Japanese financial services group. OAIS provides vehicle leasing services. The document outlines the benefits of leasing over taking a loan to purchase a vehicle, such as lower total cost and tax savings. It also describes the leasing process and options for early termination if an employee leaves their organization before the lease ends.

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    Car lease policy myntra

    Original Title

    Car lease policy myntra

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    This document provides information about ORIX Auto Infrastructure Services Limited (OAIS), a joint venture between IL&FS, an Indian infrastructure company, and ORIX Corporation, a Japanese financial services group. OAIS provides vehicle leasing services. The document outlines the benefits of leasing over taking a loan to purchase a vehicle, such as lower total cost and tax savings. It also describes the leasing process and options for early termination if an employee leaves their organization before the lease ends.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    757 views11 pages

    Car Lease Policy Myntra

    Uploaded by

    ertytrythyty
    This document provides information about ORIX Auto Infrastructure Services Limited (OAIS), a joint venture between IL&FS, an Indian infrastructure company, and ORIX Corporation, a Japanese financial services group. OAIS provides vehicle leasing services. The document outlines the benefits of leasing over taking a loan to purchase a vehicle, such as lower total cost and tax savings. It also describes the leasing process and options for early termination if an employee leaves their organization before the lease ends.

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    © All Rights Reserved
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    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. . .

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