INTERNSHIP REPORT

Orix Leasing Pakistan Limited

Specialization: Finance

Submitted To: Mr. Ahmed Saeed

Submitted By: Zahoor ul Haq

Roll No: BBA-16-043

Registration No: 16F-US-B-BUS-1863

Session: 2016-2020

University of Sargodha, Sub-campus Bhakkar

Department of Management & Administrative
Sciences

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 Preface

The pre-requisite of internship program is to make the students of BBA, aware of the practical
expertise and to tell them with the real management process.

With an intention of grooming the best executives of the future, University of Sargodha sub campus
Bhakkar has organized a comprehensive internship-training program. All of us were placed in
leading organizations of business arena to gain firsthand knowledge and insight into their
management and working. So, when I was given the chance of selecting an organization, I opted
for Orix Leasing Pakistan Limited.

Getting a chance of working in OLP prove to be very beneficial for me. I think that I gained
comprehensive insight in to the working of a OLP.

After the completion of internship program, internship report has been prepared just in

accordance with the practical exposure. In preparing this report, I have put all of my best
efforts and tried my level best to give maximum knowledge. Despite all of my coherent efforts, I
do believe that there will always be a room for improvement in the efforts of learner like me.

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 Dedication

TO MY FATHER
Your efforts and your personality has always been a source of inspiration and guidance
for me
Always feel your strong support in every aspect of my life.

TO MY LOVING MOTHER
“Your prayers are what I need more than anything else in my life. Love you Ammi”

TO MY SUPPORTIVE FRIENDS, TEACHERS & COLLEAGUES

“Always strengthen and a great source of motivation and determination for me”

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 Acknowledgement

By the grace and blessings of ALMIGHTY ALLAH I have been able to complete my
research work. The Gracious and All Compassionate. I can never dare to deny of HIS gifts
that HE has granted me, best of which is that HE has provided me with the torch of eternal
guidance in the form of HIS Holy Prophet (PBUH), who is the knowledge for humanity as a
whole.

I sincerely and honestly thank my supervisor Mr. Shariq Zia

for his unmatchable and dedicated supervision for the completion of this study. He has really
been extremely patient, helpful and cooperative.

I am lucky to have best teachers who are always a source of learning and inspiration for me. I
am also grateful to University Of Sargodha Sub Campus Bhakkar, for their cooperation and
support.

I would love to express my sincere thanks to my colleagues and friends who have always
been a real source of motivation for me.

I am very thankful to my family. The prayers and support of my family has helped me
throughout my work.

Zahoor Ul Haq

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 Executive Summary

I joined Orix Leasing Pakistan Limited as an Internee in Faisalabad office. The motive of
joining the OLP was to have an exposure and practical knowledge of the market and to avail
a promising career. I devoted my  time to learn about Leasing process and non banking
financial sector of Pakistan which will be beneficial to me if I join multinational and financial
sector.

In this 8 weeks internship program, I learned a lot about the leasing and financial matters and
experienced the work in the market. I spend two weeks in every department and gained
practical knowledge of every department in OLP under all Assistant Managers of respective
departments. I also made many visits to the clients, markets, showrooms, weaving and textile
factories and some more. . The object of this report that I have placed is to express what I
observed and the necessary measures that can help to capitalize the strengths to overcome
weakness and remove the threats OLP is one of the largest Non Banking Financial
Organization in Pakistan.

OLP remains a dominant player in Pakistan’s NBFI sector and has strong brand recognition
in the market. OLP deals in corporate lease, operating lease, commercial vehicles lease,
consumer auto and certificate of deposits. It has various departments and I spend two weeks
each in most of the departments including corporate division, consumer auto division, special
asset management(SAM) and special asset recovery(SAR). I started my internship in
Faisalabad office on June 8, 2019. I started my internship in corporate division under team
leader Mr. Sohaib Siddiqi (Assistant Manager). I worked there for two weeks under Mr.
Sohaib Siddiqi and Mr. Haseeb Afzal and learned the basic process of Leasing and read files
of many clients to understand the process and requirement for the lease. I did financial
analysis of many companies and learned the basic process of lease.

In the next two week I worked in the other team in corporate division under team leader Mr.
Ali Khan (Assistant Manager) and my internship supervisor was also Mr. Ali Khan. I visited
many clients with Mr. Ali Khan and learned a lot. I visited Sultan Tobacco Company and
Bismillah weaving Factory with Mr. Ali Khan and both clients were successful in managing
lease agreement with Orix later on. I came to know the requirements for the lease and how
initial quotation for the lease is made.

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I worked in consumer auto division(CAD) for two weeks under Mr. Jawad Nazir. I visited
many clients and learned the preparation of client’s file for auto lease. I worked with Mr.
Haseeb Akram and visited many clients and showrooms and some random visits as well.

In the last two weeks of my internship I worked in SAM(special asset management) under
Mr. Zahid Javaid. I learned about the recovery process and sending notifications to clients
and letting them know about their dues and reminding the late submission of installments.
SAM also take actions against defaulters and recover the asset legally in case of any
mishandling by client.

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 Table of Contents

Preface.................................................................................................................................3
Dedication...........................................................................................................................4
Acknowledgement..............................................................................................................5
Executive Summary............................................................................................................6
Chapter 1...........................................................................................................................11
1 Overview Of The Organization................................................................................11
1.1 Brief History:......................................................................................................11
1.2 Introduction of the Organization........................................................................11
1.2.1 Vision Statemen..........................................................................................11
1.2.2 Mission statement.......................................................................................12
1.2.3 Objectives:..................................................................................................12
1.2.4 Strategies:....................................................................................................12
1.3 Policies of the organization................................................................................12
1.3.1 Managerial Policies:....................................................................................12
1.3.2 Operational Policies:...................................................................................13
1.3.3 Human Resource Policies:..........................................................................13
1.4 Industry / Competitor Analysis..........................................................................13
1.5 Organizational Hierarchy chart..........................................................................14
Board of Directors.....................................................................................................14
1.6 Number of employees........................................................................................15
1.7 Main offices........................................................................................................16
1.7.1 Head office:.................................................................................................16
1.7.2 Karachi........................................................................................................16
1.7.3 Lahore.........................................................................................................16
1.7.4 Islamabad....................................................................................................16
1.7.5 Faisalabad...................................................................................................16
1.7.6 Sialkot.........................................................................................................16
1.7.7 Multan.........................................................................................................16
1.8 Introduction of all departments..........................................................................17
1.8.1 Corporate department:................................................................................17
1.8.2 Consumer auto division:.............................................................................17
1.8.3 Special asset management(SAM):..............................................................17
1.8.4 Special asset recovery(SAR):.....................................................................17

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 1.8.5 Administration department:........................................................................17
1.8.6 Operations:..................................................................................................17
1.8.7 Credit:.........................................................................................................18
1.8.8 Treasury:.....................................................................................................18
1.8.9 Accounts & Finance:...................................................................................19
1.8.10 MIS:............................................................................................................19
1.8.11 Internal Audit:.............................................................................................19
1.8.12 Human Resources:......................................................................................20
1.9 Comments on the organizational structure.........................................................20
1.10 Portfolio of products.......................................................................................21
1.10.1 Corporate Lease:.........................................................................................21
1.10.2 Operating Lease:.........................................................................................21
1.10.3 Commercial Vehicle Lease:........................................................................21
1.10.4 Certificates of Deposit:...............................................................................21
1.10.5 Micro Finance:............................................................................................21
1.10.6 Consumer Auto:..........................................................................................21
2 Introduction Of The Branch/ Area Office.................................................................24
2.1 Starting and ending dates...................................................................................24
2.2 Names of departments........................................................................................24
2.3 Training program................................................................................................24
2.3.1 Activities performed by the departments....................................................24
2.3.2 Tasks assigned to me..................................................................................25
3 Critical Analysis........................................................................................................28
3.1.1 Organizing:.................................................................................................28
3.1.2 Human Resource Management:..................................................................28
3.1.3 Customer Relation Management:...............................................................29
3.2 Financial Analysis..............................................................................................29
3.2.1 Horizontal analysis......................................................................................29
3.2.2 Vertical analysis..........................................................................................29
3.2.3 Ratio Analysis.............................................................................................29
3.3 Future prospect of the organization:...................................................................34
4 SWOT Analysis........................................................................................................34
4.1.1 Strengths.....................................................................................................34
4.1.2 Weaknesses.................................................................................................34
4.1.3 Opportunities...............................................................................................35

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 4.1.4 Threats.........................................................................................................35
5 Conclusion................................................................................................................36
6 Recommendations.....................................................................................................37
ORIX Leasing Pakistan.............................................................................................37

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 Chapter 1

1 Overview Of The Organization

1.1 Brief History:

ORIX Leasing Pakistan Limited (“OLP”) was established in July 1986 as a joint venture
between ORIX Corporation, Japan and local investors. The Company is listed on the Pakistan
Stock Exchange.

OLP is headquartered in Karachi and has 38 branches situated in 35 cities. Its major
shareholder is ORIX Corporation (ORIX) having 49.6% shareholding. Established in 1964,
ORIX is one of Japan’s leading integrated financial services groups with operations in 38
countries worldwide. The group has experience of 54 years of operations and has a total asset
base of Yen (¥) 11,425 billion and equity of ¥ 2,798 billion as at March 31, 2018, which
equates to US$ 107 billion and US$ 26 billion respectively. OLP offers value-added financial
products and innovative customized services to a wide array of customers throughout
Pakistan. The blend of international experience and local expertise acquired over the last 32
years provides OLP a distinctive competitive edge. OLP takes pride in the fact that it has
played a major role towards the economic development of the Country by supporting the
Small and Medium Enterprises (SME) Sector and in doing so, has helped grow numerous
small and medium businesses into larger enterprises and created thousands of jobs both
directly and indirectly.

1.2 Introduction of the Organization

OLP is the largest SME focused Non-Banking Finance Company in Pakistan. OLP offers
value-added financial products and innovative customized services to a wide array of
customers throughout Pakistan. The blend of international experience and local expertise
acquired over the last 32 years provides OLP a distinctive competitive edge

1.2.1 Vision Statemen

“Excellence in pioneering creative and flexible financial services for a diverse market.

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1.2.2 Mission statement

A corporate culture and environment that attracts and fosters the best available talent, inspires
trust of customers, promotes innovation in products and services, creates value for all
stakeholders, and is inclusive of support to the less privileged by improving their access to
finance.

1.2.3 Objectives:

 Take personalized customer service to the next level through a highly trained and
multi-skilled work force.
 To become an employer of choice by creating a fair and conducive work environment
that fosters growth and rewards talent.
 To bring transparency and control in all spheres of business and operations by
introducing well-defined policies and procedures and training staff accordingly.
 Identify and capitalize on opportunities for generating sustainable sources of income
to secure the future interests of all stakeholders.
 To maximize return to shareholders by steadily increasing ROE and ROA.

1.2.4 Strategies:

 Enhance ORIX brand image in the market as a leading diverse non-banking financial
institution with strong brand loyalty.
 To be a role model for the industry with high standards of governance and risk
assessment framework.
 To be recognized as making meaningful contributions to the economy and the society
with a focus on micro and middle-tier segments.
 Maintain the highest credit ratings in the non-banking financial sector of Pakistan to
provide maximum security to our depositors and lenders.
 Meet varying and diverse demands of customers through innovation and
differentiation in our products.

1.3 Policies of the organization

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1.3.1 Managerial Policies:

In OLP, the policies are:

 Operational policies
 Human recourse policies

1.3.2 Operational Policies:

Operational and system division is responsible for the formation of the operational policies.
Executive in charge of the system and the operation division is there to implement the
operational policies. It is the duty of executive-in-charge to Monitor the overall operation.
Activities performed by operation department of different branches. Analyzing the workflow
of different departments Specify the rules regarding the account maintenance Executive in
charge also designs the policies for:

 CAD(consumer auto division)

 Corporate division

1.3.3 Human Resource Policies:

Development of the professional skills and knowledge of the employees is essential for the
efficient functioning of the organization. These policies are as follows:

 HR Development
 Facilities provided to staff member
 Setting the career path of the employees
 Staff training and development programs
 Promotion of the staff members according to the performance

1.4 Industry / Competitor Analysis

Following leasing companies can be termed as the competitors of the Orix Leasing Pakistan
Limited.

 Asian leasing corporation Ltd

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  Askari leasing limited
 Atlas lease limited
 Capital asset leasing corporation
 Dawood leasing company Ltd
 First Habib modaraba
 Network Leasing corporation Ltd
 All commercial banks dealing in auto leasing

1.5 Organizational Hierarchy chart

Board of Directors

Mr. Khalid Aziz Mirza Chairman and Independent Non-Executive Director

Mr. Nasim Hyder Independent Non-Executive Director

Mr. Naveed Kamran Baloch Independent Non-Executive Director

Ms. Aminah Zahid Zaheer Independent Non-Executive Director

Mr. Harukazu Yamaguchi Non-Executive Director

Mr. Kiyokazu Ishinabe Non-Executive Director

Mr. Takashi Nakayama Non-Executive Director

Mr. Ikuo Nakamura Non-Executive Director

Mr. Shaheen Amin Chief Executive Officer and Executive Director

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1.6 Number of employees

1001-5000 employees

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1.7 Main offices

1.7.1 Head office:

Karachi Office 1. Street Address Office 1: Plot #. 151-A, Shop No: 9 &10, Datari Arcade,
P.E.C.H.S, Block-2, Karachi.

1.7.2 Karachi

 Clifton Office
 Khalid Bin Waleed Road

1.7.3 Lahore

 Thokar Niaz Baig

1.7.4 Islamabad

 Chakwal
 Mirpur A.K
 Rawalpindi
 Taxila

1.7.5 Faisalabad

 Jhang
 Sahiwal
 Sargodha

1.7.6 Sialkot

 Gujranwala
 Gujrat

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1.7.7 Multan

 Bahawalpur
 Rahim Yar Khan
 Vehari

1.8 Introduction of all departments

1.8.1 Corporate department:

It deals with the corporate lease and deals with the leasing of heavy equipment to the business
or auto lease to the business on corporate level.

1.8.2 Consumer auto division:

It deals with auto lease and the main focus of this department is to lend vehicles for personal
use as well as commercial use.

1.8.3 Special asset management(SAM):

Functionally this department is organized into two sections, recording section and managing
section. It is mainly responsible for recording receipts of all the lease rents of the products of
the company and carrying out all the possible measures for keeping the account moving.

1.8.4 Special asset recovery(SAR):

It deals with the recovery process of leased product and receive installments from the clients
and recover asset in case of any fraud or mishandling of the asset and take legal action
against the defaulter.

1.8.5 Administration department:

It deals with the daily management and administration work of the office and manage the
daily operations.

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1.8.6 Operations:

ORIX commenced with lease financing as its core business and needed ancillary financial
services to its product range over the time. These include: installment loan for household
equipment to corporate employees, auto leasing to salaried employees, self-employed
professional and businessmen and provision of vehicles and equipment on operating lease.
The company’s policy on internal diversification is to enter into fields closely allied to
leasing to reduce risk and make use of best available expertise in OLP. The graph depicts the
exposure in various fields. Orix has small fragment in fuel & energy sector and transport &
communication sector, which are most active and capitalized sectors. The exposure in cement
sector is zero.

1.8.7 Credit:

The marketing department sends the proposals for credit extension to credit department for
evaluation. Credit department follows ORIX guidelines, internal restrictions and IFC’s loan
covenants for extending credit. It looks into credit worthiness and ensures the potential lessee
as an established corporation in 3 years of profitable business. New projects are not financed
as well as not more than 50% of the fixed assets are financed, so the credit extension rules
prohibit credit arrangement for new small-medium sized arrangements (SMEs) without a
long history of financial statements. Which restricts the small medium sized to get lease
finance. ORIX has mainly focused on its existing customer base.

Credit department assesses customers on point charge filled by marketing personnel. The
acquired points show the lessees exposure and credit worthiness. It extend credit below
certain amount without a thorough investigation and after disbursement go into the details.
This is done usually for small businesses. Similarly the department follows the hard and fast
rules and does not look for customer friendly credit evaluation that suits the local
environment.

1.8.8 Treasury:

The treasury department in ORIX rather performs functions that are not in line with
conventional treasury norms. It is involved both in long and short term financing. It generates
enough means for day-to-day operations and disbursements as well. It is extensively involved
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in negotiations with IFC and domestic and foreign donor agencies for extending lines of
credit. It continues to have adequate funding commitments to meet its business requirement.
In the aftermath of economic sanctions, it has become extremely difficult to acquire loans
from international donors, so it has to be more competitive locally to acquire enough funs to
fulfill its commitments. The credit has continued to have adequate funding commitments to
meet its business requirements but in the recent two years the foreign funding has been
restricted and the creditors are seeking loans from local financers. The treasury function also
needs to improve its funding ability for SME’s in the local market as it has been mainly
funded by international donors and ORIX international.

1.8.9 Accounts & Finance:

This department is mainly responsible for reporting activities that include reporting to SECP,
SBP & Orix International. It receives data from marketing, treasury and credit departments
and then uses it for generating different reports. It interacts with tax authorities and decides
about specific treatment under different accounting heads. It works in close collaboration
with MIS department for reporting purposes.

1.8.10 MIS:

There are 14 employees in MIS, half of them are IT specialists and the remaining are data
entry operators and accounting experts who use different software for generating three kind
of reports and coordinating with audit, account and finance departments. It prepares concise
reports for top management, complicated and detailed reports for middle management and
reports for mother the company. It has a well-established Local Area Network to have the
quick and ready access to data and personal communication. The policy regarding the
responsibilities of the department is dictated by top management and individuals do not find
any way for creative development. No such investment has been made to acquire competitive
edge from efficient use of IT except for faster procedure execution.  The management is
planning to have a computer on every desk by the year 2001 for efficiency and coordination
among the employees.

1.8.11 Internal Audit:

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The responsibilities of this department are to ensure transparency in all functions, especially
finance, tax and accounts. It looks into staff and company matters and coordinates with CBR.
Its main responsibility is of reporting to its principal sponsors. Also monthly and half-yearly
reports are prepared for MD. It exerts control in operational activities to ensure best services
for its clients. The internal audit has a very well trained staff to complete the process
efficiently and effectively but it does not possess much authority in its decisions and their job
is only restricted to reporting not evaluating the plans.

1.8.12 Human Resources:

In February 2000 HR department was formed. It is still streamlining its activities. Although
there exists a high level of informality among employees but the decision making process is
much formal and employees are not involved in this process. The management conservative
approach does not allow personnel to participate in decision-making process. Employees are
paid fixed salaries but no commission regardless of their performance. Low salary level for
the new entrants make it difficult for the organization to retain its employees as starting
salaries are at much lower level as compared to other companies. Employees are hired on
permanent basis as management follows Japanese sayings that “Permanent employees are
always loyal”. The employees enjoy a no firing policy and employees are not laid off for their
incompetence. Japanese values of hard work, loyalty and ethics are well embedded in every
employee.

HR main responsibility is to developing job description and in-house training sessions. The
performance appraisal process is much simpler. First the employee evaluates himself on
specific factors and is then confirmed by his immediate boss.  Incentives for good
performance are both monetary and non-monetary based. The promotion is mostly dependent
on seniority and not directly on performance

1.9 Comments on the organizational structure

The OLP has clearly defined organizational structure, which supports clear lines of
communications and reporting relationships. There exists a properly defined financial and
administrative power of various committees and key management personnel, which supports
delegations of authority and accountability. OLP categories their departments through their
work specialization. OLP hire their employees through work specialization.

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1.10 Portfolio of products

1.10.1 Corporate Lease:

OLP believes in adding value to business enterprises by providing innovative, flexible and
cost effective financial solutions to acquire capital assets, commercial vehicles and cars.

1.10.2 Operating Lease:

Construction equipment packaged with maintenance and operation is the latest addition to our
operating lease portfolio, which serves our clients’ short and long term equipment
requirements.

1.10.3 Commercial Vehicle Lease:

Commercial Vehicle division offers superior integrated financial services for small and large
sized commercial vehicles for logistics and passenger transportation across the Country.

1.10.4 Certificates of Deposit:

A variety of deposit schemes with competitive returns and exceptional service are offered to
suit the needs of diverse individual and corporate customers.

1.10.5 Micro Finance:

Providing access to finance to the underprivileged segment for poverty alleviation.

1.10.6 Consumer Auto:

With highly personalized and well-tailored services in a competitive market, Consumer Auto
continues to add to its large family of satisfied customers, who enjoy the privilege of driving
their dream cars.

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 Chapter 02

Plan Of Internship Program

2 Introduction Of The Branch/ Area Office

I have completed my internship in the Orix leasing Pakistan limited, Faisalabad office, 3 rd
floor Sitara tower Faisalabad.

2.1 Starting and ending dates

From July 10,2019 to September 04,2019

2.2 Names of departments

Corporate department

Consumer auto division

SAM department

SAR department

2.3 Training program

2.3.1 Activities performed by the departments

Corporate department mostly deals with the corporate lease and deals with the leasing of
heavy equipment to the business or auto lease to the business on corporate level. In this
department firstly a quotation is made for customer and the proper file is made. They review

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the customer from financial prospective and all other details are considered. After completion
of client’s file, rental sheets are made and monthly installments are given to the client which
he has to pay before due date. In case of failing to pay installments, OLP has right to reclaim
the asset.

CAD deals with auto lease and the main focus of this department is to lend vehicles for
personal use as well as commercial use. In this department officers visit many clients and
showrooms of various auto companies.

Functionally SAM department is organized into two sections, recording section and
managing section. It is mainly responsible for recording receipts of all the lease rents of the
products of the company and carrying out all the possible measures for keeping the account
moving.

SAM and SAR work for the recovery of asset and make rentals pay within due date. They
deal with the recovery process of leased product and receive installments from the clients and
recover asset in case of any fraud or mishandling of the asset and take legal action against the
defaulter

2.3.2 Tasks assigned to me

2.3.2.1 Corporate department:

In the starting two weeks of my internship I worked in the corporate department under Mr.
Sohaib Siddiqi and Mr. Haseeb Afzal. I read many files of clients to understand the leasing
process and working of OLP. I read many files and got better understanding of how file of a
client is prepared and what documents are required. I will discuss parts of lease file one by
one. I came to know the whole leasing process and followings are my findings about the
process of lease in OLP.

 Approach to the client or client approaches orix by reference or any other means
 Initial assessment of the client, his background, his job/business to know whether he
is financially sound or not for leasing payments.
 If yes then a quotation or initial proposal of lease is made and given to client and upon
his willingness and approval further process proceeds.
 Initial documents required by ORIX are

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 1. CNICs of lessee and guarantors.
2. Last six months bank statements.
3. Income tax return.
4. Latest utility bills paid.
5. Copy of driving license ( in case of auto lease)
6. Initial business record/ledger of purchases and sales.
7. Salary slips, cash vouchers and job certificate.
 After this, work on the file of lessee starts.
 It starts with the lease application in which detail of asset and its cost and payment is
mentioned including all the charges and monthly installments and payment schedule
of installments.
 Mostly insurance is done by ORIX but if lessee wants then he himself can do
insurance on his own.
 Down payment of at least 20% of the cost of the asset should be paid first and
remaining amount is paid in monthly installments with principal amount and markup.
 Terms made clear to the lessee on which asset is going to be leased.
 NADRA verification of the lessee and guarantors is attached
 Then comes credit profile which contains detailed and complete information about
asset, terms and conditions, price of asset, guarantee and guarantors info, lessee
introduction, his personal information, his complete business background(if any),
business details, previously any relation with ORIX in case of existing lessee, visit
report by officers, CIB and data check, references provided by lessee, revenue/income
details of lessee and calculation of net savings revenue verification by bank
statements and in the end recommendations by officers.
 Visit report is attached and findings of visit are describe.
 BBFS(borrowers basic fact sheet) includes information about lessee.
 CIB and data checks done by the system NACTA.
 Online NTN verification is done and tax returns are attached.
 Bank statements analysis and health declaration form.
 Check list.

After the completion of file, it is reviewed and checked by assistant managers and then sent
for approval.

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I closely observed and learned the whole process and made some visits as well with Mr.
Haseeb Afzal. I did financial analysis of many clients and made amortization schedule as
well. I also did balance confirmation.

2.3.2.2 Corporate department:

In the next two weeks I worked Mr. Ali Khan and made a lot of visits to many factories,
showrooms and client’s offices.

Visit to Sultan Tobacco company which wanted to lease 25 cars for their area sales managers
in Punjab.

Visit to Bismillah weaving factory. They wanted to sale and lease back of 8 weaving looms
for their factory.

2.3.2.3 CAD (Consumer Auto Division):

In CAD I made a lot of visits with Mr. Haseeb Akram and learned a lot. I gained market
knowledge through those visits. Following are the visits in CAD

Visit to Toyota Lyallpur Motors showroom.

Visit to JAZMAK Showroom of imported vehicles.

Visit to packaging factory.

Random visits to several number of weaving and textile factories.

Visit to ISUZU showroom.

2.3.2.4 SAM(Special Asset Management):

In the last two weeks of my internship, I worked under Mr. Zahid Javaid in SAM. In SAM I
understand the recovery process of lease. I checked many recoveries and payment record of
many lessees and learned the basic process to recover the asset in case of default of the
lessee.

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3 Critical Analysis

In Pakistan leasing was introduced as an alternative debt financing which was being interest
based is prohibited in Islam. As such leasing has been approved by the religious Board as one
of the Islamic modes of financing. The first leasing company was established in 1985 in
public sector National Development Leasing Corporation (NDLC).
Since then leasing sector has been progressing at a very high pace both in terms of increase in
number of leasing companies.

Orix Leasing Pakistan is now one of the largest leasing company in Pakistan and have many
branches in various cities of Pakistan.

The basic motive behind leasing is the purchasing power of the customer and the tax
exemption. According to the business point of view the leasing is best for tax rebates and
relief. Orix leasing customers are more satisfied .Moreover they need to tell the customer that
the concept of leasing is according to Islamic mode of financing .Well all these objectives can
be achieved by advertisements ,and providing easy terms and conditions to customers.

3.1.1 Organizing:

During my internship in OLP, I observed that there is very good and calm working for
workers and also as for customers. Everyone is very cooperative with each other and they
work as a team and as one unit help out each other in every aspect.

3.1.2 Human Resource Management:

Top management is very supportive and motivates junior employees to do good. They create
a very healthy working environment and work as a team and give much more value to their
employees and motivate them and also arrange training and development programs and
courses.

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3.1.3 Customer Relation Management:

In OLP the dealing between the customer and the staff is well organized and they value their
customer and give healthy environment to the clients. OLP focuses on customer relationship
management.

3.2 Financial Analysis

The financial statement of any organization shows the results of its operation and its position
in business. It is a process, which involves reclassification and summarization of information
through the establishment of ratios and trends. The overall objective of financial statement
analysis is the examination of a firm’s financial position.

3.2.1 Horizontal analysis

Through this analysis, we can check that what changes with are in years in the items of
balance sheet and profit and loss account. Last year become base for next year. Moreover,
change can be easily analyzed.

3.2.2 Vertical analysis

In vertical analysis of balance sheet, the percentage of each item of statement are calculated
to total and then the change in the percentages are checked with in years.

3.2.3 Ratio Analysis

In ratio analysis, different types of ratios are calculated. Liquidity, profitability, Debt ratios
are calculated.

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3.3 Future prospect of the organization:

The Leasing Sector in general has experienced commendable growth over the years and has
adequately proved to be an alternate source of finance. However, its near future
prospects do not seem to be too bright unless its various areas of concern including the
prevailing economic scenario, dried-up foreign funding lines, lack of resource
mobilization, non-availability of level playing field, lack of innovative financial products, tax
and other issues are seriously investigated and mitigated. In case of an expected economic
revival, the overall Leasing Sector is likely to regain its initial momentum However, in
order to improve the near future demand prospects of Leasing Sector in particular, the
leasing companies need to develop innovative products along with encouraging leasing of
plant and equipment relating to priority sectors of the economy including energy (CNG),
IT (computers and other hardware), textiles (air jet looms and auto) subject to their intrinsic
value.

4 SWOT Analysis

4.1.1 Strengths

 OLP is biggest leasing company of Pakistan.

 It has good and reliable marketing network.
 OLP provides services on door step.
 It gives interest above KIBOR rate while banks give interest below KIBOR rate.
 OLP has a very good and effective workplace environment.
 Through OLP businessmen seek tax relief which is not available through banks.
 OLP is a leading institute which offers lease to the country people at simple terms and
conditions.
 For the proper training and development to the staff, OLP arranges many courses and
training programs.
 Professional and experienced teams are available in the entire departments.
 There is coordination and good communication environment between the departments of
OLP.

4.1.2 Weaknesses

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  OLP has less number of branches in Pakistan.
 Its Mark up rate is higher than banks.
 OLP has lack of media advertisement.
 Non-payment attitude and default culture.
 There is no proper advertisement strategies follow for the promotion of the OLP.
 OLP is not properly working in Islamic financing in Pakistan.
 There is lack of new talent.

4.1.3 Opportunities

 Present government is more emphasizing on the accountability. So this is a golden change

for OLP for Recoveries of the political loaning.
 This is a time to reduce the over staff and new recruitment should be done.
 Working in Investment certificates because they have done very less progress in this field.

4.1.4 Threats

 Banking sector is a big threat for OLP.

 100% risk cannot be minimized so risk of default of client is always there.

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 5 Conclusion

The Company has Develop a very good repute in Pakistan and Concluded that it is a difficult
job but the marketing department have used all the marketing strategies to become success in
the market inshallah ORIX Leasing will find a great success in future.

I did my internship in credit and marketing department of OLP. I learned a lot during my
internship period. There were many visits and I gained a lot of practical knowledge and came
to know the ground realities of how work is done in professional field.

Each plays an important role in the working of marketing department. The overall
atmosphere of the office was very friendly but at the same time the whole team fully focused
on the strategic objective of the company. I learned the actual Work of each department, the
rule and policies procedures, systems, values etc.

I got to know the office environment that how people work together systematically and co
operating with each others.

I found all the employees and managers of every department hardworking, disciplined, and
punctual in their task.

While working in “Orix Leasing Pakistan “ I got very broad visions about company’s
activities more than those that I had learned during my study BBA(hons) Program. It is truly
been an honor working in this amazing organization and now I honestly feel like a member of
the ORIX family.

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 6 Recommendations

While working in Orix Leasing Pakistan I learn many things by which my knowledge
increases as well as my experience is also enhanced.

Some of my suggestions for OLP are given below.

 Company should have to motivate their employees to control their turnover rate.
 Company must adopt best advertisement strategies.
 Company should choose best and favorable mark up rate by which their relationship
among customer becomes strong.
 Company should give different types of bonuses to their employees for better
working.
 Company should work in Islamic financing in much better way.
 Company should adopt decentralized decision-making strategies by which they
should get more options for better decision.
 OLP should expand its branches to more cities of Pakistan.

References

ORIX Leasing Pakistan

www.orixpakistan.com

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