Benefits of Making Business in India | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN INDIA WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN INDIA WWW.MERGERSCORP.COM

4. Country Overview India, country that occupies the greater part of South Asia. It is a constitutional republic consisting of 29 states, each with a substantial degree of control over its own affairs; 6 less fully empowered union territories; and the Delhi national capital territory, which includes New Delhi, India’s capital. With roughly one-sixth of the world’s total population, India is the second most-populous country, after China. It is known from archaeological evidence that a highly sophisticated urbanized culture—the Indus civilization—dominated the northwestern part of the subcontinent from about 2600 to 2000 BCE. From that period on, India functioned as a virtually self- contained political and cultural arena, which gave rise to a distinctive tradition that was associated primarily with Hinduism, the roots of which can largely be traced to the Indus civilization.

5. Executive Summary India has made tremendous progress in building a policy environment to encourage investment. As a result, the country’s economy is growing more rapidly and FDI inflows have accelerated impressively. Current efforts to strengthen and liberalize the regulatory framework for investment need to be intensified and India’s well- developed economic legislation implemented at an accelerated pace both at national level and right across India’s states and union territories. India has made tremendous progress in promoting Investment. India remains one of the most ethnically diverse countries in the world. Apart from its many religions and sects, India is home to innumerable castes and tribes.

6. Introduction – Doing business in India India jumps to 63rd position in World Bank's Ease of Doing Business 2020 report. In the 2019 report, India had improved its rank on six out of the 10 parameters relating to starting and doing business in a country. Indian business landscape is prepared to grow in multiple areas due to several factors such as international trade, government stimulus, and an overall strong developing country. With a young population that is rising to leadership and technology driving growth and innovation, there are several business opportunities in multiple sectors. According to the a report, 62% of CEOs are very confident of their growth prospects in the short-term, Nearly 84% of CEOs in India saw more opportunities.

7. Conducting business in India Some of the main forms of business entities in India are: •Private Limited Company •Public Limited Company •Unlimited Company •Limited Liability Partnership (LLP) •Partnership •Sole Proprietorship It is also mandatory for foreign investors or foreign shareholders, both individuals and corporate shareholders, to seek Government Approvals for Investing in India In some special cases Foreign Investment Promotion Board, FIPB Approval for Foreign Investment in India is required.

8. Taxation in India The Central Government of India levies taxes such as customs duty, income tax, service tax, and central excise duty. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty. Currently, the 3 income tax slabs in India are 0% tax for annual income up to Rs. 5 lakh, 10% tax for annual income between Rs. 2.5 lakh to Rs. 5 lakh, 20% tax for annual income between Rs. 5 lakh to Rs. 10 lakh and 30% tax for annual income above Rs. 10 lakh

9. Trade India is the 17th largest export economy in the world and the 45th most complex economy according to the Economic Complexity Index (ECI). In 2017, India exported $292B and imported $417B, resulting in a negative trade balance of $125B. In 2017 the GDP of India was $2.6aT and its GDP per capita was $7.06k. The top exports of India are Refined Petroleum ($30.2B), Diamonds ($26.5B), Packaged Medicaments ($13.2B), Jewellery ($8.66B) and Rice ($7.05B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Crude Petroleum ($74.7B), Gold ($39B), Diamonds ($20.7B), Coal Briquettes ($19.4B) and Petroleum Gas ($12.2B).

10. Banking in India The country had no central bank prior to the establishment of the RBI. The RBI is the supreme monetary and banking authority in the country and controls the banking system in India. It is called the Reserve Bank’ as it keeps the reserves of all commercial banks. Commercial banks mobilize savings of general public and make them available to large and small industrial and trading units mainly for working capital requirements. Commercial banks in India are largely Indian-public sector and private sector with a few foreign banks. The public sector banks account for more than 92% of the entire banking business in India—occupying a dominant position in the commercial banking.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com