Lease Pricing and Structuring Software
by Access Information Services
and Vinod Kothari.
ELEMIS is a menu driven, easy to use
Lease/HP evaluation software. It is an extremely versatile
tool for pricing and structuring of lease and hire-purchase
transactions. It computes IRRs and post-tax IRRs, NPVs for various
lease transactions, works out rental plans (equated or unequated)
for different pre-tax or post-tax IRRs, works out the amortisation/capital
recovery schedule, works out retrospective IRRs (based on historical
performance of a lease), sensitivity to change in variables,
etc. In short, it is a very comprehensive evaluation tool.
Elemis is very popular all over India - there are over 100
installations in India with clients ranging from the top-players
in the industry (State Bank of India, Canara Bank, Apple Finance,
Tata Finance, etc.) to medium and small enterprises. There
are installations out of India as well.
It allows the user to input and store the financial
details of a Lease/HP transaction, i.e. Cost, Down Payment,
Commencement Date, Tenure, Periodicity, Payments in Advance/Arrears,
Management Fee, Residual Value/Option Price, Security Deposit
Details. Management Fees and Residual Value can be input either
as amounts or percentages. Security Deposit can be with
or without interest. If interest bearing the interest
can be paid or retained. If retained it can be
compounded or simple. The principal can be repaid
in single or multiple, equal or unequal installments.
To assist in inputting data, pressing a function key call a
pop-up a math. calculator. The result of the calculation
can be transferred by a keystroke to the input field.
The user can
input a Targeted Post Tax or Pre Tax Financial or
Accounting Internal Rate of Return (IRR) and back
OR input rentals #9; or
the Lease rate(PMPT) for lease/ Add-on rate for
a flat rate
and calculate the Pre and Post Tax Financial and Accounting
IRR, Rental and Lease/Add-on Rates can be structured
or unstructured. Therefore virtually any form
of payment schedule can be analyzed though ELEMIS.
ELEMIS can approximate the Weighted Average Cost of Capital
based on the user's equity/debt structure.
ELEMIS gives you both Pre-tax and more importantly Post-Tax
IRR's as well as the Pre-tax and Post-Tax Net Present
Value's.(NPV). NPV's can be calculated using discount rates
either taken from the Cost of Capital parameters or input by
ELEMIS can use reinvestment rate(s) supplied by you
to give you Modified IRR's to smooth the effects of reinvestment
implicit in the IRR calculations.
ELEMIS allows modification of payment dates and amounts thereby
calculating Retrospective IRR's i.e. giving accurate
IRR's in terms of the actual cash flow amounts and dates.
ELEMIS can do a Sensitivity Analysis of IRR's/NPV's
to reflect the impact of tax rates or discount rates
changing over the tenure of the asset.
ELEMIS produces the Capital Recovery Schedule which
enables you to split your rentals into its principal and interest
components based on the actual rate of return. This is also
internationally accepted depreciation accounting practice for
The Rental Schedule gives a list of dates and amounts
due for rental payments for each asset.
ELEMIS reports on the Income and Capital Recovery for
any period of the user's choice. The user has a choice of four
methods for recognizing finance income.
To analyze the impact of Depreciation, ELEMIS gives an IT
Depreciation Report giving Opening WDV, Depreciation for
the Year and Closing WDV, asset wise for any particular year.
Using Debt-Equity Ratio and the Cost of Debt (either taken
from the Cost of Capital parameters or input by the user) an
asset wise Return on Equity/Net Worth report is available.
For requirements not covered by the existing reports ELEMIS
has an Ad-Hoc Query facility which allows the user to
create a report of his choice by defining both the conditions
and the data content. This gives you an almost flexibility to
cull any information from the data already input.
ELEMIS can calculate Lease Equalization details as per
ICAI guidelines for an individual assets or all the assets depending
on the Companies Act tax rates input by the user.
ELEMIS reports can be displayed on screen, sent to the
printer or a text file or to a LOTUS 123 compatible
text file for later use.
ELEMIS has a Financial Calculator to make quick calculations
of IRR, NPV, Present and Future Values, not restricted to Lease/HP
cases but extending to any financial transaction.
Options to Transfer or Copy data are provide
to assist in data transfer in case of branch
operations or where the data is required to be split over various
A Setup Menu contains the specifications for the Default
Sub directory, the Tax Rates, the Advance Tax Proportions and
the method for calculating HP Finance Income and can be altered
ELEMIS comes with a powerful on-line help facility which
not only contains information on how to use the software but
also a glossary of terms and assumptions.
ELEMIS is password protected to allow you to restrict
access to your evaluation information.
Elemis is priced at Rs. 15000/- in India, and USD 750
out of India. It is mailed along with a detailed self-explanatory
manual. The program files will take about 2 MB of disk space
and the data files will take extra space depending on the data
input and stored.
A demo version is priced at Rs. 2000/- in India and USD 100
out of India. The demo version also is mailed along with the
For any further information, send
an e-mail or write to: