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    LEASING AND HIRE PURCHASE

    Presented by :

    Abhishek Saran

    Maharath Mayukh

    Amit Kumar Jayaswal Anuj Jha

    Yogeshwar Tiwari

    Aditya Shukla

    MBA 4th semester (2012-13)

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    Definition of leasing

    Process by which a firm, can obtain the use of

    certain fixed asset, for which it must make a

    series of contractual and periodic payments.

    Lessor

    Lessee

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    Essential elements

    Parties to the contract

    Asset

    Ownership separated from user

    Term of lease

    Lease rentals

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    Types of leasing

    Finance lease : it is for terms that approacheconomic life of asset.

    Total payments over term of lease > lessors

    initial cost of leased asset Operating lease : for a term, shorter than

    economic life of the asset.

    Total payments over term of lease


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