EFFECT OF LEASE STRUCTURE ON FINANCIAL STATEMENTS AND PERFORMANCE OF THE COMPANY

ABSTRACT “Why own a cow when the Milk is so cheap? All you really need is milk and not the cow” (Donald B.Grant). This is best way to understand the concept of lease. Over the years, lease finance has been consented as one of the cornerstones of modern financial sources. It is a method of acquiring the used of an asset without buying it. Leasing has great potential in India. Leasing is sun-rise sector in India. Leasing provides firms with operational flexibility and leases are easier to finance than purchase. As such, the purpose of the paper is to ascertain the effect of lease structure on the profitability of the company as well as study the effect of lease on financial statements of company.