Rentals - Grace Period

Cost of Assets 1,000,000

LKM & RV 100,000
Net Finance amount 900,000
Rate of mark 16% pa
Grace period 2 quarters
Term of lease 3 years
Rental 110,962 Formula for rentals in arrear will be used
Total payments-m.up 72,000 during grace period
Rentals (110,962*10) 1109620
Total 1,181,620
Amortisation schedule:

Opening Mark up Principal Total
Principal repayment Rental
(a) (b) (c) d (b+c)
1 900,000 36,000 - 36,000
2 900,000 36,000 - 36,000
3 900,000 36,000 74,962 110,962
4 825,038 33,002 77,960 110,962
5 747,078 29,883 81,079 110,962
6 665,999 26,640 84,322 110,962
7 581,677 23,267 87,695 110,962
8 493,982 19,759 91,203 110,962
9 402,779 16,111 94,851 110,962
10 307,928 12,317 98,645 110,962
11 209,283 8,371 102,591 110,962
12 106,692 4,268 106,692 110,960
Total 281,618 900,000 1,181,618
Note:
During grace period , only mark up @4% per quarter will be paid
after grace period, rental will be calculated for 10 quarters ( minus grace period)
Formula for rentals in arrear will be used
-
Closing
principal
e(a-c)
900,000
900,000
825,038
747,078
665,999
581,677
493,982
402,779
307,928
209,283
106,692
-
During grace period , only mark up @4% per quarter will be paid
after grace period, rental will be calculated for 10 quarters ( minus grace period)
Balooned Rental payments
Cost of asset 1,000,000
LKM & RV 100,000
NFA 900,000
Rate of M.up 16% p.a
Rental payment
first 8 quarters only mark up
last 4 quarters m.up & principal
Rental
m.up 288,000
Rental last 4 quarters 991,764
Total 1,279,764
Amortisation schedule:

Opening Mark up Principal Total Closing
Principal repayment Rental principal
(a) (b) (c) d (b+c) e(a-c)
1 900,000 36,000 - 36,000 900,000
2 900,000 36,000 - 36,000 900,000
3 900,000 36,000 - 36,000 900,000
4 900,000 36,000 - 36,000 900,000
5 900,000 36,000 - 36,000 900,000
6 900,000 36,000 - 36,000 900,000
7 900,000 36,000 - 36,000 900,000
8 900,000 36,000 - 36,000 900,000
9 900,000 36,000 211,941 247,941 688,059
10 688,059 27,522 220,419 247,941 467,640
11 467,640 18,706 229,235 247,941 238,405
12 238,405 9,536 238,405 247,941 0

Total 379,764 900,000 1,279,764

Note: Only mark up will be paid in first 8 quarters
Full rental will be paid in last 4 rentals-calculate as per formula




Full rental will be paid in last 4 rentals-calculate as per formula
upfront (reverse) Balooned Rental payments
Cost of asset 1,000,000
LKM & RV 100,000
NFA 900,000
Rate of M.up 16% p.a
Rental payment
first 2 rentals- 98% of principal
last 10 quarters-balance principal




Amortisation schedule:

Opening Mark up Principal Total Closing
Principal repayment Rental principal
(a) (b) (c) d (b+c) e(a-c)
1 900,000 36,000 432,353 468,353 467,647
2 467,647 18,706 449,647 468,353 18,000
3 18,000 720 1,499 2,219 16,501
4 16,501 660 1,559 2,219 14,942
5 14,942 598 1,621 2,219 13,321
6 13,321 533 1,686 2,219 11,634
7 11,634 465 1,754 2,219 9,881
8 9,881 395 1,824 2,219 8,057
9 8,057 322 1,897 2,219 6,160
10 6,160 246 1,973 2,219 4,188
11 4,188 168 2,051 2,219 2,136
12 2,136 85 2,136 2,221 0

Total 58,899 900,000 958,898

Note: First 2 quarter, calculate rental so that prn.outstanding Is Rs.18,000 (2%)
after 2nd rental is paid off

Amortise Rs.18,000 @4% per quarter for rest of 10 quarters
First 2 quarter, calculate rental so that prn.outstanding Is Rs.18,000 (2%)
Step up Rental payments
Cost of asset 1,000,000
LKM & RV 100,000
NFA 900,000
Rate of M.up 16% p.a
Rental payment
rental will be revised after 4 quarters

Amortisation schedule:

Opening Mark up Principal Total Closing
Principal repayment Rental principal
(a) (b) (c) d (b+c) e(a-c)
1 900,000 36,000 24,000 60,000 876,000
2 876,000 35,040 24,960 60,000 851,040
3 851,040 34,042 25,958 60,000 825,082
4 825,082 33,003 26,997 60,000 798,085
5 798,085 31,923 68,077 100,000 730,008
6 730,008 29,200 70,800 100,000 659,209
7 659,209 26,368 73,632 100,000 585,577
8 585,577 23,423 76,577 100,000 509,000
9 509,000 20,360 119,865 140,225 389,135
10 389,135 15,565 124,660 140,225 264,475
11 264,475 10,579 129,646 140,225 134,829
12 134,829 5,393 134,829 140,225 -

Total 300,898 900,000 1,200,900

rental for first 8 rental will be as per cash flows of the lessee-min.rental not less than mark up amount
rental for 9th quarter onward will be calculated as per formula
rental for first 8 rental will be as per cash flows of the lessee-min.rental not less than mark up amount
Step down Rental payments
Cost of asset 1,000,000
LKM & RV 100,000
NFA 900,000
Rate of M.up 16% p.a
Rental payment
rental will be revised after 4 quarters

Amortisation schedule:

Opening Mark up Principal Total Closing
Principal repayment Rental principal
(a) (b) (c) d (b+c) e(a-c)
1 900,000 36,000 104,000 140,000 796,000
2 796,000 31,840 108,160 140,000 687,840
3 687,840 27,514 112,486 140,000 575,354
4 575,354 23,014 116,986 140,000 458,368
5 458,368 18,335 81,665 100,000 376,702
6 376,702 15,068 84,932 100,000 291,771
7 291,771 11,671 88,329 100,000 203,441
8 203,441 8,138 91,862 100,000 111,579
9 111,579 4,463 26,276 30,739 85,303
10 85,303 3,412 27,327 30,739 57,976
11 57,976 2,319 28,420 30,739 29,556
12 29,556 1,182 29,556 30,739 -

Total 182,956 900,000 1,082,956

rental for first 8 rental will be as per cash flows of the lessee
rental for 9th quarter onward will be calculated as per formula