Why
should you come to First Leasing?
Your first question will understandably
be why should you come to First Leasing
Company of India Ltd? Our answer is
that because we have 37 years of outstanding
frontline experience in the Leasing
industry in India. Our expertise is
razor sharp in matters relating to
taxation in India, Sales Tax, VAT,
Legal issues etc., and there is no
other leasing company with 37 years
of comparable experience. Our specialists
come with 37 years of real time experience
which you will discover you have a
pressing need for when you enter the
Indian economy.
What can you do for us when
we¡¯ve exhausted our capital
budget and our debt equity ratio is
out of line?
We address such problems every other
day. When your capital budget is exhausted
and you face a cost over run, a lease
transaction is the way out, because
it¡¯s a revenue expenditure,
no board approvals required.
You need the credit facility
as of ¡°yesterday¡±
We at First Leasing are convinced
that the game of business goes to
the swift. We have an outstanding
track record of quick reaction time
for credit requests. Ask any of our
customers multinational or Indian
and they will tell you that First
Leasing ¡°walks its talk¡±
and delivers decisions within days,
rather than weeks, or months.
Where do you find money for
Software purchases?
Banks and Financial Institutes don¡¯t
finance intangibles such as Software.
We do and have been in the business
for over 5 years.
What about Vendor Leasing
to multiply our sales both middle
ticket and large ticket products?
First Leasing has helped two leading
world class multinational companies
multiply their sales through our vendor
leasing programs. Our prompt decision
making and ability to negotiate meaningful
transactions for customers of your
products have gone a long way to assist
in exponentially expanding the sales
of world class multinationals in computer
hardware and another dealing in electronic
copier machines.
Could you assist us put together
a lease for a Corporate Jet?
Recently with the financial press
emphasizing the real likelihood this
time around of 10 ¨C 40% Withholding
Tax on rentals payable to offshore
lessors the earlier corporate solution
of completing a Cross Border Lease
will prove unacceptably expensive.
As a domestic leasing operation we
will not be troubled with this Withholding
Tax nor for that matter will our lessee
customers. This enables Companies
that require Corporate Jets a quick
and inexpensive means of accessing
a Corporate Jet and what¡¯s more
its completely ¡®Off Balance
Sheet¡¯. |
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What
remedial steps can you take when depreciation
rates are reduced in the tax budget?
If depreciation rates are reduced
as is the case in the 2007 budget,
we will structure for you a two or
a one year lease, which permits Rentals
to be charged against Taxable Income.
This action translates into an effective
50% and 31/3% tax shield respectively,
versus the meagre 15% depreciation
on plant and machinery. Who bites
the bullet, we do, because we have
to report higher taxable income.
We grow infant ¡®Sonys¡¯
into big ¡®Sonys¡¯ (There
is a growth gene in leasing).
You are convinced that your company
has a product that will achieve block
buster sales, but today you are an
unrecognized ¡®rough diamond¡¯
We have on several occasions identified
growth companies such as ¡®Sony¡¯
in its infancy and funded them into
a full blown ¡®Sony¡¯ equivalent,
by responding to their needs not our
operating convenience.
How to beat the obsolescence
problem?
Computer obsolescence is a worrisome
thought that refuses to go away especially
when the financial press daily introduces
you to ¡®innovative new machines¡¯.
First Leasing will dispel this concern
with obsolescence on Computer leases
and other advanced rapidly changing
technologies by writing Operating
Leases that place the risk of ownership
(Residual Value) on First Leasing
and will work with performing customers
to refresh their technology with the
latest.
Cost competitive rates
First Leasing believes that success
in business goes to the lowest cost
producer. We have diligently cut expenses
every year. We achieved these attractive
targets by managing a lean efficient
organization with half the people
that other companies have for comparable
outputs.
What to do with the dragon
of taxation?
First Leasing has successfully managed
and grown a complex Leasing organization
over 37 years. Most importantly our
experience has been focused entirely
on India not America, Japan or any
other country. We understand leasing
issues, regulations and tax problems
pertaining to India, like the back
of our hands. The knowledge we have
accumulated about Indian taxation
will continue to be the biggest differentiation
factor that speaks for First Leasing
vis-¨¤-vis our competitors.
The most compelling reason
why you should come to First Leasing
Co of India Ltd?
Our interest in our customers is more
than evident if you check the Income
Tax Act and structures that have been
created for the Leasing industry because
you will find that First Leasing is
responsible for most of them. First
Leasing took on itself the responsibility
of debating (through Tax Tribunals,
High Courts and ultimately the Supreme
Court) with the Income Department,
to gain the substantial tax benefit
of Investment Allowance for all leasing
companies and with it the irrevocable
right to claim capital allowances,
a benefit which we pass on to our
lessees through lower rentals. Need
I say more? You could e-mail us at
flcimd@vsnl.net and let us know your
needs. We have completed 36 tax assessments
and none of our lessees have suffered
any tax problems because of any sloppy
lease agreements or documentation.
We have 37 years of frontline tax
experience that truly counts and can
save your company a bundle. When the
chips are down you can count on First Leasing¡¯s experience. |
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