Transactions Quarterly

Transcription

1 Edition 24 Transactions Quarterly A perspective on the Indian transactions market April June 2016

2 In this edition Edition 24 April June 2016 Foreword...3 India mergers and acquisitions (M&A) highlights...4 Key sector highlights...7 Transactions n s Quarterly rl 2Q16 Cross-border activity...10 Global M&A activity...11 Outlook

3 Foreword The past quarter has been extremely eventful on the global front and more so with regards to the increased concerns post the UK s decision to exit EU. Continuing weakness in oil prices, a slowing Chinese economy, tepid economic activities in the emerging market and the upcoming US presidential election has exacerbated the overall softness in deal-making. Closer home, the M&A activity in India, witnessed a marginal slowdown during the quarter. The moderation in deal count was the mirroring effect of the overall soft global M&A market. However, the disclosed deal values improved slightly as compared to the same quarter last year, on the back of a few large sized deals (US$500 million and above). The deal activity was more noticeable on the domestic front, driven by the Indian corporates focus on maintaining competitive advantage and strengthening core businesses. The macroeconomic indicators were encouraging in India compared to global counterparts, which supported the local deal environment. Cross-border deal volume during the quarter remained almost similar to the same quarter last the outbound deal count was lower as compared to 2Q15. From a sector perspective, technology continued to lead deal volume activity, on the back of increased focus by companies to boost their consulting capabilities and provide end-to-end solutions in their core area of expertise. On the other hand, the infrastructure sector topped the deal values during the quarter, as investors targeted renewable energy assets. Simultaneously, improving availability of domestic coal brought back deal activity in the thermal power space. The overall deal momentum may remain slow in the near future, on the back of continued economic and political uncertainties in global markets (especially post Brexit vote), which might have a cascading effect on India as sentiment in the short-term which would lead to companies going slow on planned deals. Amit Khandelwal Partner and National Director, Transaction Advisory Services, Ernst & Young LLP 3

4 India M&A highlights Domestic activity continues to dominate Indian M&A After witnessing a strong start to the year, M&A activity involving Indian companies moderated during the quarter ending June Deal volume for the quarter stood at 190 deals with a total disclosed deal value of US$7.0 billion. The deal volume decelerated by 8%, as compared to the corresponding quarter last year. However, the aggregate disclosed deal value increased by 14% from US$6.1 billion in 2Q15, largely due to four mega deals (US$500 million and above), which contributed ~US$4 billion, accounting for 57% of the total disclosed deal value during 2Q16. Domestic activity continued to dominate the Indian M&A transactions in 2Q16, with 103 deals with an aggregate disclosed deal value of US$4.9 billion. This contributed ~54% to the total deal volume and ~70% to the total disclosed deal value. This notable contribution in disclosed deal value can be primarily attributed to a few mega transactions. The largest deal involving home-grown companies was the announced acquisition of Welspun Renewables Energy Private Limited by TATA Power Renewable Limited, for US$1.4 billion. In another deal, JSW Energy limited announced to acquire Jindal Steel and Power Limited s 1,000 MW power plant in Chhattisgarh, for US$977 million. Exhibit 1: Quarterly transaction activity in India Q13 4Q13 1Q14 2Q14 3Q Deal value (US$ b) Source: Source: EY Analysis of ThomsonONE data On the cross-border front, value increased during the quarter compared to the corresponding period in the previous year. The quarter witnessed 87 deals contributing an aggregate disclosed deal value of US$2.1 billion as compared to 93 deals with US$1.1 billion in 2Q15. Transnational M&A activity was dominated by inbound deals (56 deals with a disclosed deal value of US$1.3 billion). One of the key inbound transactions during the quarter included the announced acquisition of TATA communication s stake in Neotel by Liquid Telecom and Royal Bafokeng Holdings, for US$424.5 million. In another deal, Malaysia s largest power utility company, Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Deal count Tenaga National Bhd., announced an intention to acquire 30% stake in GMR energy s selected power plants for US$300 million. 190 From a sector perspective, the technology sector continued to dominate the deal volume with 23 deals, followed by the infrastructure and retail and consumer products sectors which clocked 18 deals each. On the value front, infrastructure sector topped the list with US$2.8 billion. Average deal size Deal size composition 6% 7% 7% 5% 6% 9% 8% 10% 7% 7% 16% 20% 21% 28% 26% Average deal size for all deals Average deal size for deals below US$100m 69% 65% 62% 60% 61% US$93m A decrease from 2Q15 s average deal size of US$96m US$15m A decrease from 2Q15 s average deal size of US$20m 2Q15 3Q15 4Q15 1Q15 2Q16 Deal size ranges (US$ m) Undisclosed Above 100 Source: EY Analysis of ThomsonONE data 4

5 India M&A snapshot in 2Q16 Deal type composition Deal count Domestic Inbound Outbound Total 2Q Q Q Q Q Deal value (US$b) Domestic Inbound Outbound Total 2Q Q Q Q Q Source: EY analysis of ThomsonONE data Top 10 deals involving Indian companies Deal type Deal description Date Target Target nation Acquirer Acquirer nation Value (US$ million) Sector Domestic Majority stake acquisition Welspun Renewables Energy Pvt. Ltd. India Tata Power Renewable Energy Ltd. India 1,382.3 Infrastructure Domestic Asset/ Business purchase Jindal Power Ltd MW Power Unit India JSW Energy Ltd. India Infrastructure Domestic Asset/ Business purchase Aircel Ltd.-4G spectrum India Bharti Airtel Ltd. India Telecommunications Inbound Investment by a consortium Neotel (Pty) Ltd. India Liquid Telecom Group and Royal Bafokeng Holdings (Pty) Ltd. UK Telecommunications Outbound Brand purchase Teva pharmaceutical Industries Ltd.- Eight Drugs Israel Dr. Reddy's Laboratories Ltd. India Pharmaceuticals Outbound 100% acquisition Inbound Minority stake acquisition Inbound Asset/ Business purchase Domestic 100% acquisition Inbound Majority stake acquisition Source: EY Analysis of ThomsonONE data Target Group Ltd. UK Tech Mahindra Ltd GMR Energy Ltd. India Tenaga Nasional Bhd Kemwell Biopharma Pvt. Ltd.- India Pharma Division Geometric Ltd.-Business India HCL Technologies Excel Crop Care Ltd. India Sumitomo Chemical Co. Ltd. India Technology Malaysia Infrastructure India Recipharm AB Sweden Pharmaceuticals India Technology Japan 93.1 Chemicals 5

6 Is selling the new buying? 2015 EYGM Limited. All Rights Reserved. ED0617 Find out why divestments are becoming as much of a focus for CEOs as acquisitions. ey.com/tas #BetterQuestions 6

7 Key sector highlights 2Q16 Vs 2Q15 change indicator Increase Decrease Technology 23 deals US$542m Media and entertainment 13 deals US$75m Infrastructure 18 deals US$2,797m products 12 deals US$126m Retail and consumer products 18 deals US$37m Pharmaceuticals 10 deals US$617m Financial services 16 deals US$103m Metals and mining 8 deals US$1,412m Professional services 14 deals US$8m Others 58 deals US$1,261 m *Sectors mentioned in the descending order of deal volume Technology The technology sector registered 23 deals with a disclosed deal value of US$542 million as compared to 30 deals with US$150 million for the corresponding period last year. Within the sector, a majority of the deals were from the IT consulting space, with 15 deals contributing to a total disclosed value of US$539.3 million. Indian technology companies continue to increasingly target assets with niche capabilities to complement their core consulting offerings, remain competitive and increase market share. The demand for consulting services has changed from being only IT centric and transaction oriented to being more strategic and innovation oriented with a view to delivering business transformation. Transactions that exemplify this focus includes the announced acquisition in the quarter, of businesses of Geometric Limited by HCL Technologies for US$191.4 million with an eye on augmenting the latter s engineering solutions offerings. In another deal, Tech Mahindra Limited announced its decision to acquire UK-based Target Group Limited for US$318.8 million with an objective to strengthen its service offerings in the (BFSI) segment. Several inbound deals were witnessed in the data center space, following overseas technology players acquisition of data hosting platforms to cater to a growing demand for automated, softwaredriven and scalable data networks. With increasing use of cloud-based solutions and virtualization of technology, the demand for data storage is on the rise from the data heavy sectors such as, BFSI, Telecom, IT, social media and e-commerce, driving overseas technology players to address this spurt in demand by acquiring data centers. A prominent example of M&A in this space during 2Q16 includes Singapore Technologies Telemedia s announced acquisition of a 74% stake in Tata Communications data center business in India and Singapore for an undisclosed amount. Similarly, Japanbased NTT Communications Corporation agreed to acquire a 74% stake in NetMagic Solutions Private Limited (a Mumbaibased data center service provider) for an undisclosed amount. Given the rapidly evolving digital ecosystem, M&A will continue to be a key route for the technology companies to strengthen their capabilities to innovate. Furthermore, with digital disruption across social, mobile, analytics and cloud computing (SMAC), continuing to transform businesses across industries, technology players will keep looking for targets to strengthen their SMAC capabilities. This, in turn, will drive the momentum behind the deal activity. 7

8 Health care The sector clocked six deals with a disclosed deal value of US$28.4 million in 2Q16. All of the deals were either domestic or inbound in nature (four care market. The corresponding quarter last year had registered 10 deals with a disclosed deal value of US$139.4 million. Health care players focus on expanding their presence in India During the quarter international and domestic players scaled up their operations in the untapped tier II and tier III markets, by acquiring regional players. In light of existing challenges, including long gestation period and regulatory hurdles in setting up new health care centers like managing land acquisition & obtaining inclined to take the inorganic route to expand and establish their presence in the Indian health care market. Notable examples include UAE-based VPS Healthcare acquiring a majority stake in Lakeshore Hospital & Research Centre Limited, a Kerala-based tertiary-level super specialty hospital and Dr. Lal Path Labs announced plans to fully acquire Delta Ria & Pathology Private Limited in Madhya Pradesh. The health care industry has a promising future in India given the growing population and the increase in incidence and detection of ailments in the country. In addition, per capita government spending (US $44) in India is very low as compared to its global peers/developed countries, thereby providing an opportunity for private players to participate and establish a national presence. Given this strong growth potential in the sector as well as the existing challenges outlined above, health care companies, both overseas and home grown, are likely to engage in M&A activity in the coming quarters to establish and expand in the market. Retail and consumer products In 2Q16, M&A activity in the retail and consumer products sector recorded 18 deals as compared to 24 deals in 2Q15. However, the total disclosed deal value registered a steep decline to US$37.3 million in 2Q16 from US$1.2 billion in 2Q15, since there was no mega deal (US$500 million and above) this quarter. E-commerce maintains its distinction: Building on the trend witnessed last year, the e-commerce segment continued to maintain its prominence, despite a fragmented deal activity in the sector. Increasing internet and mobile penetration and growing acceptability of online payments are driving this expansion, and thereby encouraging domestic as well as overseas players to enter the segment or increase their market share. A prominent example includes acquisition of FabFurnish, an online furniture store by the Future Group to establish its online presence of its home furnishings and decor business. Companies present in the online segment also engaged in inorganic activity with an aim to consolidate their position by increasing stake in their respective subsidiaries or acquiring competitors. An example includes the announced acquisition of a 49% stake in Spice Online Retail Private Limited, an online retailer of mobiles and accessories and a unit of Spice Mobility Limited, by Beijing Digital Telecom Co. Limited. We are witnessing consolidation of the drivers leading to and online. Overall, domestic activity in the retail and consumer products sector is expected to be underpinned by the ongoing consolidation in the retail, FMCG and e-commerce segments. Organizations will continue to look to boost their existing portfolios and achieve economies of scale we are likely to see players with strong balance sheets keep up their search for acquisition targets abroad. Emerging markets such as Africa, South-East Asia and Latin America are expected to be high on the radar as the list of favored target destinations, since they have been largely untapped compared to developed countries. 8

9 Infrastructure The Indian infrastructure sector reported strong M&A activity in 2Q16 with a value. The sector registered 18 deals with an aggregate disclosed deal value of US$2.8 billion as compared to 19 deals with US$269 million in the same quarter last year. The ten-fold increase in deal value is attributable to an impressive performance by the power sector, which attracted 12 deals amounting to a total disclosed deal value of US$2.8 billion. Within the power sector, the clean energy segment dominated the M&A activity during the quarter, with both domestic and overseas power and utilities companies acquiring assets to increase their presence in this segment. In addition to the near-par grid parity tariffs, continuously falling capital cost for renewable power (especially solar), has made the return on investment even more attractive. In a deal during 2Q16, TATA Power Renewable Limited agreed to acquire Welspun Renewables Energy Private Limited, for approximately US$1.4 billion. Through this deal, TATA Power will gain 1,140 MW of renewable energy assets (solar: 990 MW and wind: 150 MW). In another deal, CLP Holdings Limited, a Hong Kong-based power utility company, acquired a 49% stake in Suzlon energy s 100 MW solar power plant in Telangana for an undisclosed amount. Healthy deal activity was also witnessed in the thermal power segment as power producers (both domestic and overseas) targeted operating assets with better coal-linkages to increase operational capacities and to diversify into the country s coal-rich regions through acquisitions. The investor interest in this space has been increasing lately on the back of improved domestic coal supply. One of the key deals in this space was the announced acquisition of Jindal Steel and Power Limited s 1,000 MW power plant in Chhattisgarh by JSW Energy Limited for approximately US$977 million. In another deal, Malaysia based Tenaga National Bhd., has agreed to acquire a 30% stake in GMR Energy s select power plants for US$300 million. In the next few months, deal-making activity is expected to increase in the Indian infrastructure sector owing to the government s increased focus on faster clearance processes for building infrastructure across segments. At a sub-sector level, deal activity is likely to remain strong in the power segment, as several large operational portfolios in the renewable segment come up for sale/private investment and improving fuel linkages for the thermal power sector continues to garner investor attention. At the same time, the logistic segment will continue to see an increase in deal activity, since companies, especially e-marketers, would like to cash in on the increasing demand for transportation and warehousing services. Financial services The sector reported an increase in deal activity in 2Q16, recording 16 deals as compared to 13 deals in 2Q15. However, the disclosed deal value decreased to US$103.2 million from US$267.7 million in the corresponding period last year. Insurance was the most active segment value of US$84.9 million in the quarter. Consolidation drives M&A in insurance market in line with strategic focus on During the quarter, domestic players strengthened their market position by acquiring their peers in the market. With cost optimization on agenda, both life and non-life players are planning to build scale in the market to tackle the rising cost of distribution accompanied by Key examples of domestic consolidation include: The board of HDFC ERGO General Insurance Co. Limited approved 100% acquisition of L&T General Insurance Co. Limited, for US$81.9 million. HDFC Standard Life Insurance Co. Limited & Max Group announced the merger of Max Life Insurance Company Limited and Max Financial Services Ltd into HDFC Life by way of a scheme of arrangement. 9

10 Cross-border activity Cross-border M&A heightens in 2Q16 UK Inbound: 8 deals, US$438m Outbound: 7 deals, US$403m Japan Inbound: 5 deals, US$120m US Inbound: 14 deals, US$27m Outbound: 7 deals, US$19m Outbound Inbound Deal ow France Inbound: 5 deals, undisclosed value Outbound: 1 deal, undisclosed value Both inbound and outbound Only inbound or outbound UAE Inbound: 2 deals, US$16m Outbound: 2 deals, US$5m Singapore Inbound: 7 deals, US$99m Outbound: 3 deals, US$9m Source: EY Analysis and ThomsonONE data compared to 2Q15 which jumped to US$2.1 billion for the quarter, registering an increase of 87% as compared to US$1.1 billion last year. There were 56 inbound deals during the quarter, which contributed US$1.3 billion to the disclosed deal value as compared to 53 deals accounting for US$647 million in 2Q15. But, the outbound deal value increased to US$856 million from US$492 million in 2Q15, registering a growth of 74% over the last year. On the inbound front, the technology and professional services sectors led activity in terms of volume, with seven deals each. Infrastructure sector took the lead in terms of inbound value with a total disclosed value of US$429.3 million. On the outbound front, technology and retail and consumer products sectors led the deal activity in terms of volume with The UK topped the deal value table for the quarter with US$841 million driven by two large deals which contributed US$743 million (88% of the India-UK cross-border deal value) with a total of 15 cross-border transactions (eight inbound and seven outbound). In terms of deal volume, the US continued to be the most active cross-border M&A partner for Indian companies during the quarter, with a total of 21 deals (14 inbound and 7 outbound). 10

11 Global M&A activity in the second quarter of 2016, registering a y-o-y decline of 16% in volume and 18% in value. the deal activity, both in terms of volume and value. Current state Global M&A activity continued to report a relatively soft performance in 2Q16 as compared to the same quarter last year. Total deal count was 8,342, down 16.4% as compared to 9,982 deals in 2Q15, and disclosed deal value declined by 18.6% y-o-y to US$840.9 billion from US$1,033.1 billion in 2Q15. The shortfall in value was driven largely by a reduced number of big ticket deals. The number of megadeals (valued at US$10 billion or more) declined to 7 in 2Q16 from 11 in 2Q15. At the same time, the drop in volume was primarily due to a fall in activity in lower-value bands (under US$50 million or undisclosed). Moreover, the period also reported the largest withdrawn deal in history, billion proposed merger with Allergan. The Americas region contributed to the majority of the deal volume and the disclosed deal value 2,949 deals accounting for US$480.5 billion, which was followed by EMEIA, with 2,910 deals valued at US$174.8 billion. The US continued to dominate the global M&A landscape, and accounted for 25.3% (2,118 deals) of the global M&A deal count and 52% (US$437.4 billion) of the global disclosed deal value. From a sector perspective, technology, retail and consumer products were active sectors for M&A activity during the quarter. The technology sector led global M&A, both in terms of volume and value with 1,941 deals for a disclosed deal value of US$175.3 billion. Few global deals that made the headlines during the quarter were the announced acquisition of Monsanto Co. by German chemical giant Bayer Corp. for US$62 billion to form the world s largest supplier of pesticides. In another deal, Abbott laboratories announced its decision to acquire St. Jude Medical Inc., for US$30.6 billion to create the largest medical equipment maker, targeting the high-growth cardio-vascular as well as neuromodulator markets. Outlook Investor concerns about global economic growth continue to underpin high levels of volatility in equity, currency and commodity markets. The far-reaching consequences of Brexit on global M&A short-term, heightened uncertainty could impede deal-making appetite in the latter half of the year. M&A activity in the Americas is expected to remain subdued due to ongoing political and economic headwinds. The region s historical deal hotbed, the US, should also see the interest rate movement and the upcoming US presidential election may lead to companies holding on to their plans. However, US corporations with substantial cash reserves will be ready to seize attractive targets, once the ongoing global uncertainties settle down. Moreover, a spate of debt-restructuring activities in Latin American companies, on the back of falling commodity and oil prices, political turmoil and rising interest rates, will likely drive deal-making in the second half of European markets should see a blip in M&A deals in 2H16, as the UK s referendum to exit from the EU has raised concern about a contagion effect spreading to other EU countries. This will lead to an extended period of currency volatility and market uncertainty, which may negatively affect the deal activity and other corporate investment in this region. Given that, acquisitions of the corporations is expected to increase, as the relative value of IP-rich assets with a global customer base become more attractive. Though the UK domestic deal activity might struggle in the nearterm, Brexit may open up M&A opportunities for foreign players. Overseas buyers, encouraged by a weaker pound are looking to acquire British targets, undermining warnings that deal-making could dry up due to heightened uncertainty and volatility. months, primarily led by China. The direct impact of Brexit on economies may be limited. The economies is expected to come from The increased Chinese overseas M&A pursuits will likely continue in the next quarter as well. As China s domestic economy continues to remain sluggish, leading cash-rich Chinese companies are willing to diversify business across geographies. The Chinese government is also actively supporting state-owned companies with regard to overseas strategic acquisitions, which is expected to impact positively to a 11

12 Quarterly global M&A activity 9,074 8,916 9,267 9,926 10,187 9,556 9,796 9,982 9,697 8,734 9,300 8, , , , Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Value (US$ billion) Count Deal environment by sector and area by value, 2Q16 Sectors Americas Asia- Total Technology 12% 6% 3% 21% Consumer products and retail 13% 1% 2% 16% Life sciences 11% 1% 1% 13% products 3% 2% 3% 8% Power and utilities 5% 1% 2% 8% Oil & Gas 3% 1% 2% 6% Others 10% 10% 8% 28% All sectors 57% 22% 21% 100% Target Sector Nation Acquirer Monsanto Co. St Jude Medical Inc. Consumer products and retail Life sciences Value (US$b) US Bayer Ag US Abbott Laboratories 30.6 LinkedIn Corp. Technology US Microsoft Corp Hershey Co. Consumer products and retail US Fortive Corp. Life sciences US Mondelez International Inc. Existing shareholders Source: EY analysis and ThomsonONE Note: Data is continuously updated and therefore subject to change. 12

13 Outlook M&A activity in India to sustain momentum M&A activity involving India companies is expected to be soft in the short-term, impacted to an extent by an uncertain global political and economic environment. Global investors and businesses are expected to stay away from making big decisions, until the immediate reactions to Brexit referendum settle down, leading to a better clarity on its impact. Furthermore, a sub-par global economic outlook will likely keep a check on cross-border activity. However, domestic activity should play a prominent role with regard to Indian M&A and help partially offset the drag exerted by a subdued cross-border activity. Domestic action, which slightly moderated during 2Q16, is expected to pick up considering a relatively better risk-return strong demand potential, home-grown players will continue to explore acquisition opportunities to expand their market and pharmaceuticals, in the light of the burgeoning competition, should also support domestic deal activity. In addition, distressed asset sales by leveraged corporations are anticipated to become pronounced over the next few months as banks take a stringent view on non-performing assets. On the cross-border front, investors (both Indian and foreign) are likely to follow a cautious approach. Outbound M&A appetite is expected to be low, especially for European targets due to the ambiguity around the economic scenario in the UK and the EU. However, with the Government of India (GoI) taking steps to encourage Indian players to acquire oil and gas assets overseas, outbound investments in natural resources sectors are likely to continue, owing to a focus on securing supplies of natural resources. The inbound activity will likely tread on a slow yet steady pace due to the cautious optimism prevailing globally. At the same time, the GoI s recent move to ease FDI rules across sectors, including aviation, broadcasting, defence and pharmaceuticals should encourage global players to selectively evaluate their inorganic options, despite a volatile global environment. 13

14 Buy? Build? Developing your growth strategy involves choosing the right acquisitions to complement your organic growth. ey.com/tas #BetterQuestions 2015 EYGM Limited. All Rights Reserved. ED

15 Methodology Transactions quarterly is based on EY s analysis of ThomsonONE s M&A data. Data used in this edition is for the period 1 April 2016 to 31 June Deals have been taken from ThomsonONE.com through the Advanced M&A search, where an Indian company was either a target, acquirer, target s ultimate parent or acquirer s ultimate parent. The terminated deals have been excluded. Deals have been taken where deal status as per ThomsonONE.com was either pending, partially complete, completed, pending regulatory or unconditional. Private equity deals or deals with a financial sponsor have been excluded. Deal values have been taken as stated in ThomsonONE.com (accessed 4 July 2016) or as per the company press release in certain cases. All amounts are in US$ unless otherwise stated. The conversion rate of non-us$ deals are in accordance with ThomsonONE.com guidelines the foreign exchange rate as on the deal announcement date. For our analysis, deals have been classified into: Sectors: based on target s business Inbound, outbound and domestic: based on target/ acquirer/target s ultimate parent and acquirer s ultimate parent countries Deal size: based on announced deal values Average deal size has been calculated as total deal value divided by number of deals with disclosed value. The numbers have been rounded off unless otherwise indicated. For any further details on the deal inclusion criteria used by ThomsonONE.com, contact us at eytasindia@in.ey.com. 15

16 Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young LLP. Published in India. All Rights Reserved. EYIN ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. KL EY refers to the global organization, and/ or one or more of the independent member firms of Ernst & Young Global Limited