The correct answer is C. Lessee.
A lease is an agreement between a lessor (owner of an asset) and a lessee (user of an asset) in which the lessor grants the lessee the right to use the asset for a specified period of time in return for a series of payments.
Under the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of the lessee. This is because the lessee has the right to use the asset and the obligation to make the payments. The lessor, on the other hand, does not have any rights or obligations in relation to the asset after it has been leased.
The financing bank is not a party to the lease agreement and therefore does not have any rights or obligations in relation to the asset.
Option A is incorrect because the manufacturer is not a party to the lease agreement.
Option B is incorrect because the lessor is the party that owns the asset and grants the lessee the right to use it.
Option D is incorrect because the financing bank is not a party to the lease agreement.