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ORIX Auto Infrastructure Services Limited (OAIS)ORIX Auto Infrastructure Services Limited (OAIS)

Background

Promoted by the Central Bank of India, Housing Development Finance Corporation Limited and Unit Trust of India, IL & FS is one of India’s 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 estate-related 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

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

The strong shareholders provide the necessary resources & support to foster growth

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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.

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.

Transaction

Process Flow

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Employee to log in the request with Finance/HR

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

Based on the received request, ORIX will negotiate with the dealer/s on availability & discounts.

STEP - 1

STEP - 2

STEP - 3

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Benefits of Lease over Loan

TOTAL PAYOUT COMPARISON BETWEEN LOAN Vs LEASE   Loan Lease  Honda City VMTModel

Exshowroom Price 945200 945200Road Tax & Registration 157384 157384Downpayment in LOAN 251904 0Finance Amount 850680 1102584Loan EMI 27786 0Lease Rentals with VAT 37233RV with VAT 49325Gross Payout in loan / lease 1000287 1340378Total Payout on loan / lease with RV (Incl of D/P in loan & R V in Lease) 1252191 1389704Tax savings on loan / lease 0 402114Total Payout 1252191 987590

Benefit of Lease over Loan 264601

Benefits of Lease over Loan

Car under CTC with Lease Car Taken Under LoanSalary Cost Year 1 1053207 1500000Car Cost - EMI Lease (37233 *12) 446793 0Total CTC 1500000 1500000Tax 315962 450000Downpayment 0 251904Car Loan repayment (27786 *12) 0 333429Net in Hand 737245 464667 Car under CTC with Lease Car Taken Under LoanSalary Cost Year 2 1053207 1500000Car Cost - EMI Lease 446793 0Total 1500000 1500000Tax 315962 450000Car Loan repayment 0 333429Net in Hand 737245 716571 Car under CTC with Lease Car Taken Under LoanSalary Cost Year 3 1053207 1500000Car Cost - EMI Lease 446793 0Total 1500000 1500000Tax 315962 450000Car Loan repayment 0 333429Residual Value 49325 0Net in Hand 687920 716571

Car under CTC with Lease Car Taken Under LoanTake Home -1 737245 464667Take Home -2 737245 716571Take Home -3 687920 716571Total 2162410 1897809

Benefit of Lease over Loan 264601

Insurance Management – Assuring smiles all the way…

ORIX offers Comprehensive Insurance through it’s 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

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Thank You. . .