Page 181 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 11.9 Review Questions

1. Analyse the regulatory authority that the RBI has been able to exercise over the leasing
companies operating in India for last 5 years.

2. Why do you think has the govt. of India fixed a rigid procedure for import leasing?
3. Present a comparative analysis of the tax benefits that the leasing companies have in
developed countries and their counterparts have here in India.

4. Is there any flaw in the provisions related to indemnity and guarantee? Support your
argument with reasons.
5. Which is the most common type of lease that you generally witness across and which is
the rarest? What do you think to be the reasons behind them?
6. Is the rigid leasing system in India beneficial or not for the industry in general? Analyse
and give reasons for your answer.
7. Examine the problems of sales tax that are being witnessed by the lasing companies in
India.
8. Suggest methods to simplify the process of executing and integrating the specific lease
arrangement.

9. The termination of the main lease will automatically terminate the sub-lease, which may
create complications for sub-lessee. Which complications do you think may arise?
10. Examine the legal aspect with respect to the leasing companies in India.

11. Analyse the advantages of various types of lease under practice in India.
Answers: Self Assessment

1. transfer 2. unavailable
3. lessee 4. law of contract
5. same 6. default
7. sooner 8. lessee

9. equipment/asset 10. operating
11. Sale and Lease Back 12. direct
13. Equipment supplier, Lessor, Lessee 14. lessor
15. domestic

11.10 Further Readings

Books Charles W.L. Hill, International Business, Tata McGraw Hill Co. Ltd., New Delhi

Thakur, Burton & Srivastava, International Management, Tata McGraw Hill Co.
Ltd., New Delhi
Sharan V., International Financial Management, Prentice Hall of India, New Delhi

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