LEASING

Group Members
1. 2. 3. 4. 5. 6.

DHARMESH AHIR CHINTAN RAVAL HEMAL BAROT PRATIK THAKER MITESH PATEL JAY DESAI

Meaning
A Lease represents a contractual agreement where the

lessor grants the lessee the right to use an asset in return for a periodical lease rental payments.

ELEMENTS OF LESSEE
Two Parties 2. Assets 3. Period of lease 4. Lease Rentals
1.

Types of lease
1. 2. 3. 4. 5. 6.

Operating lease Financial lease Sales and lease back Domestic lease International lease Leverage lease

ADVANTAGES OF LEASING TO LESSEE

1. 2. 3. 4. 5. 6. 7.

Financing of Capital goods Additional source of finance Less Costly Tax Benefit Obsolence Risk Simplicity Flexibility

TO THE LESSOR
1. Full Security 2. Tax Benefit 3. High Profitability 4. High Growth Potential

LIMITATION OF LEASING
1. Double Sales Tax 2. Restriction on use of Equipment 3. Ownership

Thank you