DEPARTMENTALIZATION OF ORIX LEASING PAKISTAN

LIMITED
There are total 11 departments in Karachi Head Office of ORIX Leasing Pakistan
Limited. Which are as follows:
1. Marketing department
2. Credit department
3. Business Control department
4. Rental Recoveries
5. Administration department
6. Human Resource department
7. Finance & Accounts department
8. Treasury department
9. Rental Collection department
10. Information System development
11. Hard Ware Section
12. Consumer finance services
13. Auto lease
14. Operating lease
Marketing department
The principal responsibilities of the marketing department are identify customer need for
credit, carry out credit analysis, prepare detailed report on lessees financial position and
submit it to higher-ups for approval. Involve in searching and developing new clients and
manage good relationship with them.
They also evaluate the documents submitted by the customers prepare the files (approval
and payment) and then send it for checking to the Business Control department
Credit department
This department define broader based credit polices for the Company. By evaluating
different environmental conditions it set guidelines for credit evaluations. Mostly big-
ticket files credit analysis is done here.
Business Control department
The legal documents, which are signed by the customers, are re-checked here. They also
maintain the record of these documents. They handle the matters related to insurance of
the asset such as arrangement of insurance, insurance claims etc.
Rental Recoveries
The cases, which require special handling regarding recovery of overdue rentals, go to
rental recoveries department. The recovery process is carried out by various means such
as:
Repossession of vehicle
Legal action
By customer consent
Administration department
They handle all the office matters related with office administration such as office vehicle
maintenance, utilities bills, rents of offices, renovation of offices, maintenance of office
equipment, arrangement of inter branch tours etc. In short it can be said that it deal with
all the general administration matters.
Human Resource department
This department involve in the activities such as planning of the human resource,
development of the human resource, annual reviews for promotion, for employment
made broad based policies, evaluate employees and nominate for different courses,
arrange orientation for new employees, formalized job description, set employees
packages etc.
This department also set rules and regulation for the employees and employer or
redefined them. Also it deals with the hiring and firing of the employees. In short we can
say that it deals with all the affairs related with the employees of the company such as
salaries, promotions, annual leaves, bonuses, employees in house training sessions etc.
Finance and Accounts department
It maintains companys accounts records. It maintains the record of all the business
transactions. It operates the companys bank accounts and maintains the record of
payments and receiving.
This department arranges internal audits. It also facilitates external audits by State Bank
of Pakistan or by different audit agencies.
Treasury department
This department manages and arranges the financial resource for the company as and
when required. The finance is required for the disbursement activities. It also manages
the holding financial resources of the company. So the basic function of this department
is the money management.
On branch level it facilitate the account opening or provision of over draft. Also it
handles the repayment of the loans, which are taken by the company.
Rental Collection department
This department involves in the activities like physically collecting the rentals on due
dates and updates the records by feeding the date about the rentals collection. Branches
send statement of deposits to this department and it is then feeded it in the computer
and debt notes are generated.
Information System Department
1.Software development and data maintenance.
This department is responsible for the development and continues up gradation of the
information systems. On the basis of data generated at different locations this system
generate required reports.
The integrated computer system has the information about customers history,
customer grading, contract information, rental repayment records, customer exposure,
salary database etc.
Presently it is working for connecting all the braches on line. Recently on very shorter
scale they are developing software for different companies on their demand.
2.Hard ware section
They are responsible for the replacement of the hard ware of the computer also they
repair if there is any fault occur in the hard ware of the computers.
Consumer Finance Services
This department gives household appliances on hire purchase basis to the individuals
such as refrigerators, microwave ovens, computers, bikes etc. In the beginning they have
provided this service to the employees of the multinational companies such as PIA, Engro
chemicals etc. Companies gave undertaking that the rentals will be deducted form the
salary of the employees and it will be paid to ORIX in one check. But now this service
can also availed by the general public.
Auto lease
They finance automobiles to individuals including businessmen; corporate employee and
self employed professionals. The lease period is 3 to 5 years and insurance is included in
the rentals. They provide different features of insurance such as the individual life
insurance are also included in it.
Operating lease (Rentec Division)
This department provides various types of assets on rental basis such as:
Power generators
Air compressors
Satellite equipment
Delivery vans
Luxury buses
Transportation vehicles
ORIX has wider range of diesel and gas power generators. It gives them on short-term
lease. It gives air compressors on lease to civil aviation. Satellite equipment is used for
wide area computer networking it gives it to different companies and banks. Delivery
vans are given on lease to different distribution companies on daily bases. Luxury buses
are given on lease to different multinational companies. Transportation vehicles such as
big containers and traulas are given on lease to different companies for moving their
goods.
For every type of asset there is separate asset manager. These asset managers are
appointed by the companies or firms or business houses, which are expert in maintenance
of these assets.
Benefits of operating lease
Off Balance Sheet Financing
As the asset is returned to ORIX at the end of the contract, the transaction is a pure
operating lease, therefore it remains off balance sheet thus improving the return on assets.
No capital budgeting is required.
Lower Rentals
As the asset is not completely depreciated therefore it carries higher residual value, which
results in lower rentals for the user as the financial costs are significantly reduced.
Value added comforts
Operating lease can bundle together various services required with the asset such as
maintenance, operation, insurance and replacement of the asset in one value added
package.
Customizable
The package can be tailored for the requirements of your organization.
Resource allocation flexibility
Operating lease allows your business greater flexibility in terms of utilization of the
capital and insulates your business against the risk associated with capital investments.
Furthermore operating lease allows you to:
Complete solution as per user demand
Hedge against technological obsolescence and inflation
Asset without investment
Better utilization of tax benefits
Conservation of credit lines
Time to concentrate on core business
Take advantage of the lessors purchasing power