In association withISSUE 18 OCTOBER 2012India WatchWelcome to the Autumn edition ofGrant Thornton’s India Watch, in associ...
India Watch - Issue 18                                                                                            October ...
India Watch IssueIndia Watch - Issue 18   i     c       u                                                                 ...
India Watch - Issue 18                                                                                                Octo...
India Watch - Issue 18    a Watch Issue      Watc        tch     sue                su                                    ...
India Watch - Issue 18                                                                                                    ...
India Watch - Issue 18                                                                            October 2012            ...
India Watch - Issue 18                                                                                        October 2012...
India Watch - Issue 18                                                                                     October 2012Fac...
India Watch - Issue 18                                                                                     October 2012The...
IndiIndia Watch IssueIndia Watch - Issue 18  dia at      Issu                sue                                          ...
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India Watch - October 2012 - Indian companies listed on the London Markets


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Welcome to the Autumn edition of Grant Thornton's India Watch, in association with the London Stock Exchange. India Watch tracks the performance of all Indian companies listed on the London Markets, while also giving an overview of Indian M&A activity and an analysis of the Indian economy

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India Watch - October 2012 - Indian companies listed on the London Markets

  1. 1. In association withISSUE 18 OCTOBER 2012India WatchWelcome to the Autumn edition ofGrant Thornton’s India Watch, in associationwith the London Stock ExchangeIn this issue we highlight that the Grant Thornton multi-brand retailers and allow them to sellIndia Watch Index continues to remain strong, directly to Indian consumers for the first time.although this quarter saw underperformance Certainly a step in the right direction, especiallyagainst its peer indices. Investors’ concern for the current Congress-led government whichover the slowing down of the Indian economy, has struggled to implement any significant economicdepreciation of the Indian Rupee and the political policies in the eight years it has been in power.uncertainty surrounding economic reforms was Lastly, we give an update on the transferreflected in the third quarter. pricing regulations and explain the major Overall M&A activity continued to remain amendments to the rules, including the Advancesubdued in Q3 2012, with the quarter clocking Pricing Agreements (APA).up USD 4.42 billion in deal values, vis-à-vis USD If you would like to discuss any of the matters5.91 billion for the same quarter of 2011; domestic arising in this issue or how Grant Thornton’sM&A however, continued to buck the trend, as South Asia group can help you please contact us.with the previous quarters of the year. Privateequity also showed an uptick: PE deals notchedup a total of USD 2.31 billion in value for Q32012, as against a total deal value of USD 1.91billion for Q3 2011. On the back of persistent economic unease,Indian policy makers announced new economicreforms in September. The new reforms, ifimplemented, will pave the way for globalbusinesses to buy up to 51% of the country’sAnuj Chande Munesh KhannaPartner, Corporate Finance Senior Partnerand Head of South Asia Group Grant Thornton India LLPGrant Thornton UK LLP T +91 22 6626 2600T +44 (0)20 7728 2133 E
  2. 2. India Watch - Issue 18 October 2012Grant Thornton India Watch Indexsaw underperformance against itspeer indices this quarterThe Grant Thornton India Watch Smaller Caps Index outperformedFTSE100 and FTSE AIM All Share Index over the nine-month period,closing 8% up compared to FTSE 100’s 3% rise and the 2% increasein FTSE AIM All Share Index, however the Grant Thornton IndiaWatch Smaller Caps Index declined marginally by 2% in the quarter.130120 –– GT India Watch – ALL110 –– FTSE 100 –– FTSE AIM ALL-SHARE –– GT India Watch – smaller caps100 –– FTSE ASEAN –– FTSE AIM 100 –– FTSE AIM UK 50 90 80 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012Source: Thomson Datastream2
  3. 3. India Watch IssueIndia Watch - Issue 18 i c u October 2012 er 2012 012The power sector had a mix bag with some raised approximately £41 million by placing new * The India Watch Index consists of 31 Indiancompanies recovering the ground lost in the shares at 33p in August 2012. It was a similar case companies listed on AIM orprevious quarter while Jubilant Energy, Mytrah for Oilex. The Company raised approximately the Main Market (excluding GDRs). We only considerEnergy, KSK Power and Essar were not so £4.75 million via a fully underwritten rights companies to be Indian ifresilient. The third quarter saw a good come back issue to fund the development of is project at they are domiciled in India and/or foreign companiesby Greenko, up 13%, due to strong operating Cambay Basin, Gujarat. The share price lost 41% holding Indian assets or Investment companiesresults. Also, Nandan Cleantec (an India-based in Q3 due to the cash call and potential dilution, with Indian promoters. Thebiofuel producer), was up by 11% to 67p by the however, the successful development of the index has been created via Datastream, a Thomsonend of the third quarter. OPG Power Ventures Cambay project should provide substantial upside Reuters product and iswas the clear winner in the Index with a 47% to investors in the medium term. weighted by Market Value. To avoid distortion of indexrise in Q3 driven by a string of positive news. In spite of tough fund raising conditions in the trends, the two largestThe company achieved financial closure for its UK, the dragging of the Eurozone crisis and the market cap entities, Essar Energy and Vedanta80MW Chennai IV power project in August, slowdown of the Indian economy, the secondary Resource, are excluded.followed with successful commissioning of its fund raising witnessed in the third quarter, ** Data sourced from Thomson Reuters.77MW Chennai II plant in September 2012. It emphasises the long term growth prospects ofappears that investors firmly believe in the growth Indian small caps.potential of the company which is expecting toincrease capacity from 190MW now to 742MWby 2014. Investors remained cautious over the realestate and infrastructure sector, perhaps reflectingthe sensitivity to high interest rates, rising inputcost due to high inflation and delays in gettingregulatory clearances. West Pioneer continued itsdecline in Q3 and lost 57% in the quarter mainlydue to wider macro-economic factors. However,timely development of the Kalyan mall, nearMumbai should provide boost to its share price. Infrastructure India had a busy quarter. Theshare price dropped significantly in July when it Anuj Chandeannounced plans to raise new funds to meet short Partner, Corporate Financeterm funding requirement. As a sign of confidence and Head of South Asia Groupin the long term growth prospects of the Indian Grant Thornton UK LLP T +44 (0)20 7728 2133infrastructure sector, the company successfully E 3
  4. 4. India Watch - Issue 18 October 2012Home run: Domestic M&A andPE shore up deal activity in theface of cross border cautionOverall M&A activity continued to remain subdued in Q3 2012,with the quarter clocking up USD 4.42 billion in deal values, vis-à-vis USD 5.91 billion for the same quarter of 2011; domestic M&Ahowever, continued to buck the trend, as with the previous quartersof the year. Private equity also showed an uptick: PE deals notchedup a total of USD 2.31 billion in value for Q3 2012, as against a totaldeal value of USD 1.91 billion for Q3 2011.Deal summary: July - September 2012Q3 Deal Summary Volume Value (USD billion)Year 2010 2011 2012 2010 2011 2012Inbound 19 35 24 1.19 2.63 0.77Outbound 36 27 31 0.63 3.16 2.75Cross Border 55 62 55 1.82 5.79 3.52Domestic 41 59 46 0.69 1.11 1.29Mergers & Internal Restructuring 30 27 11 11.00 0.53 0.08Total M&A 126 148 112 13.51 7.43 4.88PE 58 90 91 1.71 1.87 2.24QIP 16 3 1 2.18 0.27 0.08Grand Total 200 241 204 17.40 9.57 7.2July - September 2012 M&A dealscape is a distinct trend – both inbound and outboundOverall M&A activity for Q3 2012 continued activity has fallen in 2012, whereas domesticto decline by about 34% and 24% in value and M&A activity, including internal restructuringvolume terms respectively, as compared to the exercises, has continued to largely buck the trendcorresponding quarter of 2011. However, there through the year. Domestic Cross Border: Cross Border:Quarterly Trends M&A Trend* Inbound Trend Outbound TrendUSD Bn 2011 2012 2011 2012 2011 2012Q1 2.4 16.32 13.75 1.26 1.73 0.69Q2 1.00 1.24 6.74 3.61 4.26 1.45Q3 1.64 1.36 2.63 0.77 3.16 2.75*Includes Internal Restructing4
  5. 5. India Watch - Issue 18 a Watch Issue Watc tch sue su Octobe 2012 October 2012 ctob ober 012Top M&A sectors: July - September 2012 Domestic/Acquirer Target Sector Crossborder USD millionONGC Videsh Hess Corp-Azeri, Chirag and Guneshli Oil & Gas Outbound 1,000.00GMR Group United Fiber System Ltd Engineering Outbound 598.00Lodha Developers Jwala Real Estate Real Estate Domestic 490.91Grasim Industries Terrace Bay Pulp Textile & Apparels Outbound 360.00Infosys Ltd Lodestone Holding AG IT & ITeS Outbound 349.00Hospira Inc Orchid Chemicals & Pharmaceuticals Pharma, Healthcare & Biotech Inbound 200.00Dalmia Cement (Bharat) Ltd Adhunik Cement Cement Domestic 197.27Crompton Greaves Ltd ZIV Group Electricals & Electronics Outbound 192.00 Solaris ChemtechChemtura Corporation Manufacturing Inbound 142.00 (bromine manufacturing & distribution business)Adcock Ingram Holdings Ltd COSME Farma Laboratories Ltd Pharma, Healthcare & Biotech Inbound 96.00 This tepid performance on the cross border 1 These two categoriesTop M&A sectors: July - September 2012 together contributed M&A front is explicable considering many of to more than 80% of the factors that reined in inbound and outbound domestic deal activity M&A activity in the first three quarters of 2012: for Q3 2012. decreasing GDP growth forecasts, stubborn Source: Grant Thornton inflation and interest rates on the home front, and Dealtracker database, July, August and the slow pace of European economies in coming September 2012 editions away decidedly from the brink. However, September 2012 saw some good news on the policy front, with measures such as the opening up of the multi-brand retail sector being announced by the Indian government. Whilst investors are treating the reforms with cautious optimism, these reforms are expected to lead to heightened deal activity in the Oil & Gas [21%] coming months. The domestic and global uncertainties Engineering [12%] notwithstanding, India Inc. put in a robust Real Estate [11%] performance on the domestic deal activity front with acquisitions, both 100% and majority1, IT & ITeS [11%] featuring prominently. Oil and Gas earned top spot due to the Textiles & Apparels [9%] September outbound deal announcement by ONGC Videsh Ltd. The company signed Others [36%] definitive agreements for the acquisition of Hess 5
  6. 6. India Watch - Issue 18 October 2012Corporation’s 2.72% participating interest in the while domestic deal activity saw TataAzeri, Chirag and the Deep Water Portion of Consultancy Services acquiring ComputationalGuneshli Fields in the Azerbaijan sector of the Research Laboratories, among other deals.Caspian Sea and 2.36% interest in the We expect the IT&ITES sector to continue toBaku-Tbilisi-Ceyhan pipeline, for a reported contribute to deal activity in the coming months.USD 1 billion. This has put the spotlight back Other sectors expected to witness substantialon a sector that saw significant deal values in M&A activity are retail and aviation. The recent2011, but had remained muted since due to policy announcements widening the scope ofpolicy issues, especially with respect to obtaining foreign investment in these sectors are expected torequisite clearances from various Indian see large foreign players entering the vast Indianregulatory authorities. retail sector and the troubled Indian aviation sector, The real estate sector entered the top by partnering with existing Indian players, whileperformers’ chart due to domestic M&A activity, also leading to some consolidation in the space.led by Lodha Developers’ 100% stake acquisition An overall analysis would seem to indicate thatof DLF’s subsidiary Jwala Real Estate for a outbound and domestic deals have driven M&Areported USD 490 million. Siel Infrastructure activity for the quarter, indicating that India Inc.and Estate Developers Pvt Ltd also undertook an in itself remains confident of internal andinternal restructuring exercise, while Providence external prospects.Educational Academy and CHD Developerscompleted domestic acquisitions in the sector. Private Equity: Supporting deal activityWe also expect to witness increased deal activity PE deals in Q3 2012 clocked up USD 2.24 billionin the country going forward, propelled by many in deal value, as against a total deal value of USDfactors – PE investments into this sector from 1.87 billion for Q3 2011, representing a circa2003 – 2007 vintage funds are now potentially at 20% increase. Deal volumes also increased for thethe end of their cycle and likely to be looking for quarter at 91, vis-à-vis 90 for the correspondingexits through secondary and strategic sales in the 2011 quarter. This quarter has also seen theface of depressed IPO markets; basic sustained highest PE deal value for the year so far.demand in the affordable housing sector; The IT&ITES sector topped the PE charts,increasing debt, in the wake of high interest rates contributing to 59% of the deal activity for theand slow demand for corporate spaces. quarter. The largest deal in this space was Bain The IT&ITES sector, which also featured as a Capital’s purchase of a 30% stake in Genpacttop performer in Q1 and Q2 2012, contributed to Ltd from existing PE investors General Atlantic11% of deal value in Q3 2012. A prominent deal and Oak Hill Capital Partners, for a reportedin this space on the cross border front was USD 1 billion, indicating an increasing trend ofInfosys Ltd’s outbound acquisition of Lodestone secondary and strategic sales being used as exitHoldings AG for a reported USD 349 million, options by PEs. Many other deals in this spaceTop PE deals: July - September 2012Investor Investee Sector USD millionBain Capital Genpact Ltd IT & ITeS 1000.0Macquarie SBI Infrastructure Fund, SBI Ashoka Concessions Ltd Infrastructure Management 150.0Macquarie Infrastructure TrustNaspers, Tiger Global Flipkart Online Services IT & ITeS 150.0Citigroup Venture Capital International Cox & Kingss Unit Prometheon Holdings Travel & Tourism 137.8Standard Chartered PE Inox India Ltd (INOXCVA) Manufacturing 45.0Blackstone SH Kelkar & Company Pvt Ltd FMCG, Food & Beverages 44.4Brick Eagle Capital Xrbia Developers Ltd Real Estate 40.0Actis AGS Transact Technologies IT & ITeS 40.0Goldman Sachs Nova Medical Centers Pvt Ltd Pharma, Healthcare & Biotech 40.0Red Fort Capital Prestige Estates Real Estate 36.46
  7. 7. India Watch - Issue 18 October 2012 were in the e-commerce subsector, includingTop PE sectors: July - September 2012 Nasper’s and Tiger Global’s investment in Flipkart Online Services Pvt Ltd, Accel Partners’ investment in Big Tree Entertainment Pvt Ltd, and an investment into Bigshoebazaar by Fidelity Growth Partners India, Qualcomm Ventures, Nexus Venture and Catamaran Ventures. The overall PE performance in the third quarter also points to a trend of PE becoming an increasingly accepted source of financing in India against the backdrop of dormant capital markets, high cost debt and a gradually evolving Indian entrepreneurial class willing to sell out or work with professionals. IT & ITeS [59%] Outlook 2 Source: Livemint, Infrastructure 27 September 2012 While M&A activity in the quarter has thus Management [7%] far provided little to cheer about, the flurry of Travel & Tourism [6%] activity on the policy front in September may well pin down Q3 2012 as the turning point in Real Estate [4%] the fortunes of India Inc. The Indian government Pharma, Healthcare in September announced its decision to allow & Biotech [6%] 51% FDI in multi-brand retail and 100% FDI in single-brand retail, while also opening up the Others [18%] aviation sector. The freeing up of the retail sector is expected to directly improve domestic and inbound activity, with players such as the Tata Group, Aditya Birla Group and Arvind Ltd already announcing domestic consolidation plans2, and foreign players such as Walmart and Carrefour expressing keen interest in the country, as per media reports. Knock-on effects are also expected to be seen in related sectors such as logistics, storage and real estate. Aviation is also expected to see some inbound activity. Although policy measures could boost economic activity, it remains to be seen if these can be executed without friction. There appears to be a political vacuum on such policy changes and without adequate consensus there is also a looming threat that implementation of such policies could be painfully slow or in the worst With special case could be jettisoned with a change thanks for their Karthik Balisagar Associate Director and in government. contribution to Assistant Head of Valuations Further, an overall increase in foreign investor Ankita Arora and South Asia Group confidence in India Inc. and lacklustre IPO Swetha Sunder of Grant Thornton UK LLP T +44 (0)20 7865 2475 markets may also lead to an increase in PE exits Grant Thornton E through strategic or trade sales, which could lead India Dealtracker to a further increase in M&A activity. team. 7
  8. 8. India Watch - Issue 18 October 2012An update on the Indian economyAs reported in the last India Watch economic update, India saw real GDP fall toaround 6.5%, for the financial year ended 31 March 2012, down from the 8.4%recorded in the previous financial year. Furthermore, the final quarter of the fiscalyear saw Indian GDP grow at its slowest rate since 2003.In addition, India’s export market continued to other hand though, while many are pleased thatfeel the strain of the world’s on-going austerity the Government is beginning to react to thewith factory output falling, for the third time country’s declining growth rate, they are concernedin four months, by around 1.8% against the that the new policies do not go far enough. Theyprevious year. Lower export earnings and also question whether the reforms will actually bedisappointing direct foreign investments resulted implemented effectively in the face of increasingin an almost 15% pressure on the Indian rupee. opposition from political allies and opponents It was on the back of this persistent economic as well as taking into consideration the country’sunease, among other things, that Indian policy long history of ineffective policy reform.makers announced new economic reforms and What can certainly be said, however, is thatpolicy initiatives in September. The new reforms, while it will be some time before the efficacy ofwhen implemented, will pave the way for global these new reforms can be measured, it is certainlybusinesses such as Wal-Mart and Tesco to buy up a step in the right direction – especially for theto 51% of the country’s multi-brand retailers and current Congress-led coalition government whichallow them to sell directly to Indian consumer has struggled to implement any significant economicfor the first time. The new reforms include a policies in the eight years it has been in power.cut in the country’s diesel subsidies as well as In summary, while India’s economy came outa loosening of the rules on foreign investment of the ‘credit crunch’ in a much better position thanin airlines and TV, and an agreement to sell most due to, among other things, a well regulatedoff stakes in four state owned companies. The financial sector and high domestic consumption,policy initiatives address the need to have a more it now seems widely accepted that if India is totransparent tax and regulatory regime and more get back to growth rates of over 9%, it will needopenness to attract foreign direct investment. the help of carefully managed external capital While India’s Prime Minister and Finance and, it might just be these reforms that relieve theMinister, have publicly stated that the reforms downward pressure on India’s economy.and policy initiatives were needed to reviveinvestor confidence, they have been aggressivelyopposed by India’s trade unions and haveresulted, not only in the resignation of a numberof coalition party government ministers, but alsoa nationwide strike. Ironically, the strikes caused by the reforms,have cost the Indian economy an estimated loss ofUSD2.25 billion, according to the Confederationof Indian Industry. Nevertheless, the reforms and policy initiativesare likely to have a much more beneficial impact Munesh Khannaon India’s economy over the long-term. Some Senior Partneranalysts believe they will help jump-start an Grant Thornton India LLPeconomy which over the last few years has seen T + 91 22 6626 2600a significant reduction in its growth rate. On the E
  9. 9. India Watch - Issue 18 October 2012Facelift to the decade long IndianTransfer Pricing RegulationsThe Indian Transfer Pricing (TP) regulations have undergone a seachange in the past few months. Since the inception of the regulations,transfer pricing has emerged as the biggest area of tax dispute.To address such disputes, the government introduced variousamendments in the TP regulation in the Finance Bill 2012.One of the key amendments introduced by the Advance Pricing Agreements (APA)government is the applicability of transfer pricing One of the most positive outcomes of the recentregulations for specified domestic transactions amendments is introduction of the APA regime.(SDT) with effect from 1 April 2012 if the value The APA rules have heralded the beginning of theof transactions exceeds approximately USD much awaited dispute resolution mechanism in1 million. This change in law was a fallout of the Indian transfer pricing environment. Thoughthe thought-provoking Supreme Court case the government announced the introduction ofof Commissioner of Income Tax IV, Delhi v the APA in the Finance Act 2012, the detailedGlaxoSmithKline Asia Ltd, wherein the court rules were out on 30 August 2012.stated that the ambit of TP should be widened to The APA rules define an APA as an agreementinclude domestic transactions where tax arbitrage between the Central Board of Direct Taxes (CBDT)opportunities are available, eg profit shifting and any person, which determines, in advance,between a loss-making and a profit-making the arm’s length price or specifies the manner ofentity or between a company enjoying a tax the determination of arm’s length price (or both),holiday and a company operating at the marginal in relation to an international transaction. Thetax rate. salient features of the APA rules are: The other amendments include widening • applicable to all persons undertakingthe scope of international transactions to or proposing to undertake internationalinclude business restructuring transactions, the transactionsintroduction of penalties for non-reporting of • provide for unilateral, bilateral as well astransactions (2% of transaction value), increasing multilateral APAsthe scope and powers of revenue and tinkering • applicable for a time period not exceedingwith the arm’s length range from 5% to 3%. 5 years Some of these amendments are introduced • depending on the value of the internationalretrospectively thus changing the status quo of transaction, the fee range from INR 1the open litigation issues. These amendments will million to INR 2 million the taxpayer ishave far reaching effects on the taxpayers. given an option to amend, withdraw or renew the application • APAs to be entered by the Central Board of Direct Taxes (CBDT) with the approval of Central Government. 9
  10. 10. India Watch - Issue 18 October 2012The APA process Pre-analysis Application Post compliance • Pre filing conference • Application • Annual Compliance • PRELIMINARY Report SCREENING • Annual Compliance • Negotiation Report • Execution Deficiency letter Renewals within 1 month Roll backs not enabledThe negotiation process Board Approval DG International Competent Discussion Competent Taxation Authority Authority Bilateral / Unilateral Multilateral Tax authorities APA Team (APA director including experts from econmics, and APA officers) statistics, law etc. Associated Enterprise (AE) Taxpayer India United Kingdom10
  11. 11. IndiIndia Watch IssueIndia Watch - Issue 18 dia at Issu sue October 2012 October 2012 ctob ober 012From a tax payer perspective, some of the market, Company D incurs more than normalconcerning aspects that are not covered under marketing and advertising expenditure (like anythe rules are: no roll backs, no definitive time full-fledged distributor).frame to conclude an APA and a lack of firewall The tax authorities in India are challenging thisprovisions. While rollbacks are not enabled, the non-routine marketing and advertising expense.authorities believe that they would definitely Interestingly, the Indian tax authorities have twohave a precedence value in case of pending different views on such expenses.litigation. However, while entering into an APA, One view of the tax authorities is that suchthe taxpayer in India would not only need to non-routine expenses should be recovered fromconduct feasibility study of Indian APA rules but the legal owner of the brand by way of cost plusalso undertake the cost-benefit analysis of APA mark up. Another view is that Company D hasrules of the other countries in case of bilateral or created marketing intangible in India and shouldmultilateral APAs. earn a share of global profits, ie profit split method. For example, when entering a APA in the Given the above background, the APA routeUK pre –filing meetings are optional, there are may provide certainty to the taxpayer, the transferno filing fees and the UK rules provide for a price would be decided in a cohesive mannertimeframe of 18 to 21 months from the date of the and both companies would avoid the risk offormal submission to conclude an APA. Thus for double India-UK APA, even though Indian rules do The introduction of Indian APA Rules is anot mention a time frame to conclude the APA, silver lining to the tough transfer pricing auditsince the UK has a timeframe, the same could act regime in India. It aims to reduce a lot of litigationas a guideline. time and cost of the taxpayer and tax authorities The benefits of an APA are several, ie provide if adopted in the right spirit. Given the pragmatictax and financial certainty to the taxpayer, avoid approach of the government, the APA mechanismpenalties, avoid double taxation, plan for future should stand the test of time.TP strategies and reduce time-cost and effort inthe transaction.Case StudyThe below example highlights how an APA canprovide certainty to the taxpayer: Company M is headquartered in the UK. Itis engaged in the manufacturing of Fast MovingConsumer Durable Goods (FMCG). CompanyM is the legal owner of the brand, technology andknow-how of the products. Company M has a subsidiary in India, ie Karishma R PhatarphekarCompany D. Company D acts as an exclusive Partner and Practice Leaderfull-fledged distributor in India of Company Transfer Pricing Grant Thornton India LLPM’s products. It does not own any intangible T +91 22 6626 2625property. To be able to sell in a competitive E 11
  12. 12. About us Grant Thornton UK LLP established a dedicated South Asia Group in 1991 to serve Asian owned businesses in the UK as well as those investing into and from the Indian subcontinent. We are proud to be one of the first UK accountancy firms to focus on this region. We are widely recognised as one of the leading international firms advising on India-related matters and have been in involved in every IPO involving an Indian company on AIM, with the exception of the real estate sector. For those clients requiring advice in both the UK and India we offer a seamless service building on the already strong and close relationship between Grant Thornton UK LLP and Grant Thornton India. International and emerging markets blog As part of our commitment to remaining at the forefront of changes and developments in regards to UK-India relationship we will be using this space to post original thought leadership and research relevant to the industry. The idea is to encourage discussion around these issues and to open up new areas and debate. To participate: More information about our South Asia Group can be found at:© 2012 Grant Thornton UK LLP. All rights reserved.‘Grant Thornton’ means Grant Thornton UK LLP, a limitedliability partnership.Grant Thornton is a member firm of Grant Thornton International Ltd(Grant Thornton International). References to ‘Grant Thornton’ are to thebrand under which the Grant Thornton member firms operate and referto one or more member firms, as the context requires. Grant ThorntonInternational and the member firms are not a worldwide partnership.Services are delivered independently by member firms, which are notresponsible for the services or activities of one another. Grant ThorntonInternational does not provide services to clients.This publication has been prepared only as a guide.No responsibility can be accepted by us for loss occasionedto any person acting or refraining from acting as a result ofany material in this