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THEMATIC
After
New
Thail
introductio
Canada Australia
Zealand
and
n of GST
Did GDP
growth
increase?
No
No
No
No
Did inflation
fall?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Analyst Details
Saurabh Mukherjea, CFA
Tel: +91 22 30433174
saurabhmukherjea@ambitcapital.com
Ritika Mankar Mukherjee, CFA
Tel: +91 22 30433175
ritikamankar@ambitcapital.com
Sumit Shekhar
Tel: +91 22 30433229
sumitshekhar@ambitcapital.com
Ambit Capital and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, investors should be aware that Ambit Capital
may have a conflict of interest that could affect the objectivity of this report. Investors should not consider this report as the only factor in making their investment decision.
Economy
Description
GST (Constitution
Amendment) bill
The Constitution provides for the division of taxation powers between the Centre and states.
Indirect taxes levied include excise duty (levied by Central Government), service tax (levied by Central
Government), customs duty (levied by Central Government), sales tax (levied by State Governments), octroi
(levied by State Governments), and Value Added Tax (levied by both Central and state Governments).
The concept of Value Added Tax (VAT) was introduced for central excise duty in 1986 (first as MODVAT and
then as CENVAT).
Prior to this, excise duty was levied on both inputs used and the output produced. This tax on tax led to
cascading of taxes. This problem was sought to be addressed by the VAT regime under which tax paid on the
inputs is deducted from the tax payable on the output produced. Similarly, sales tax also had a cascading
effect through the distribution chain. All states have now adopted the concept of VAT for state sales tax.
The issue of cascading taxation was partly addressed through the VAT regime. However, certain problems
remained. For example, several Central and state taxes are excluded from VAT. Sectors such as real
estate, oil and gas production, etc., are exempt from VAT. Furthermore, goods and services are taxed
differently, thereby making the taxation of products complex. Some of these challenges are sought to be
overcome with the introduction of GST.
The GST regime intends to subsume most indirect taxes under a single taxation regime. GST is a valueadded tax levied across goods and services. This is expected to help broaden the tax base, increase tax
compliance and reduce economic distortions caused by inter-state variations in taxes.
In 2011, the Constitution (115th Amendment) Bill, 2011 was introduced in Parliament to enable the levy of
GST. However, the Bill lapsed with the dissolution of the 15th Lok Sabha.
Subsequently, in December 2014, the Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok
Sabha. The Bill was passed by the Lok Sabha in May 2015 and referred to a Select Committee of the Rajya
Sabha for examination in the same month.
Page 2
Economy
Exhibit 2: The first rendition of the GST regime that is likely to be implemented in India
Head
Description
Scope of GST
Tobacco and tobacco products will be subject to GST. The Centre may also impose excise duty on tobacco.
Both, Parliament and state legislatures will have the power to make laws on the taxation of goods and services. A law
made by the Parliament in relation to GST will not override a state law on GST.
Levy of GST
The Central government will have the exclusive power to levy and collect GST in the course of inter-state trade or
commerce, or imports. This will be known as Integrated GST (IGST).
A Central law will prescribe the manner in which the IGST will be shared between the Centre and states, based
on the recommendations of the GST Council.
One of two scenarios are likely with respect to the rate of GST, namely:
GST rate
Scenario 1: 18% (with or without 1% additional inter-state tax)
Scenario 2: 25% (with or without 1% additional inter-state tax)
Indirect taxes to be The following major taxes will be subsumed by GST:
Value added tax (12.5%)
subsumed by GST
Central sales tax (2%)
Service tax (14%)
Note: Figures in
parentheses indicate Excise duty (~12%)
the current rate for
Customs duty (ranges from 0% to 150% with the average rate being 12%)
Central taxes
Central value added tax (ranges from 8% to 20%)
An additional tax of up to 1% on the supply of goods will be levied by the Centre in the course of inter-state trade or
commerce. The tax will be collected by the Centre and directly assigned to the states from where the supply originates.
This tax will be levied for two years, or for a longer period, as recommended by the GST Council. The Central
Government may exempt certain goods from such additional tax.
Additional tax on
The principles for determining the place of origin from where the supply of such goods takes place will be formulated by
supply of goods
a law of Parliament.
This extra tax has been mooted as GST is a destination based tax and hence states which are large manufacturers
rather than larger consumers believe that they could be short-changed. This 1% tax on inter-state trade at the source of
supply is meant to compensate such states.
The GST Council will consist of: (a) the Union Finance Minister (as Chairman), (b) the Union Minister of State in charge
of Revenue or Finance, and (c) the Minister in charge of Finance or Taxation or any other Minister, nominated by each
state government. All decisions of the GST Council will be made by three-fourth majority of the votes cast; the Centre
shall have one-third of the votes cast, and the states together shall have two-third of the votes cast.
The GST Council will make recommendations on: (a) taxes, cesses, and surcharges to be subsumed under the GST; (b)
GST council
goods and services which may be subject to, or exempt from GST; (c) the threshold limit of turnover for application of
GST; (d) rates of GST; (e) model GST laws, principles of levy, apportionment of IGST and principles related to place of
supply; (f) special provisions with respect to the eight north eastern states, Himachal Pradesh, Jammu and Kashmir, and
Uttarakhand; and (g) related matters.
The GST Council may decide the mechanism for resolving disputes arising out of its recommendations.
Parliament may, by law, provide for compensation to states for revenue losses arising out of the implementation of
Compensation to
GST, based on the recommendations of the GST Council. Such compensation will be paid for five years. These losses will
States
be estimated by taking current indirect tax collections by the States as the base.
Source: PRS legislative research, Media reports, Ambit Capital research
The GST (122nd Constitutional amendment bill) was passed by the Lok Sabha in May
2015 but could not be taken up for discussion in the Rajya Sabha in the recently
concluded Monsoon Session due to disruption by the Opposition parties. Press reports
suggest that the Government is planning to call a Special Session of Parliament to try
to get the GST bill passed. However, such a session will only be called once the
Government is sure that it will be able to secure a two-third majority in the Rajya
Sabha (source: http://goo.gl/z9zdyX). Note that the Rajya Sabha has 245 members,
out of which the NDA accounts for only 64. Note further that given the sheer amount
of logistical work that will have to be done post GST being approved by the
Parliament, it is unlikely that GST will be implemented before April 2017.
The subsequent note is divided into the following sections:
Section 1 focusses on capturing cross-country experience on GST implementation.
Given the unique contours of the first rendition of the GST that India will implement,
in Section 2, we quantify the likely impact of GST implementation in India. Section 3
finally focusses on investment implications of the ushering in of the GST regime in
India.
Page 3
Economy
Exhibit 3: GST rates in New Zealand and Canada were revised over time
Case Study 1 : New Zealand Case Study 2 : Australia
GST introduced
in CY86
2%
4%
Real GDP growth
(YoY change, in %)
3%
Real GDP growth rate
(Avg. over specified period)
1%
GST introduced
in CY91
GST lowered in
CY06
3%
GST further
lowered in CY08
2%
1%
0%
0%
Pre GST (CY81-85)
CY86-89
Pre GST
(CY86-90)
CY91-06
CY06-08
Post GST
(CY08-13)
Page 4
Economy
Exhibit 6: Australia GDP growth slowed down in Australia
as well
3.5%
3.9%
4.0%
3.4%
3.0%
12%
11%
10%
8%
8%
6%
4%
2%
0%
A survey of available research also suggests that the impact of indirect tax reforms on
GDP growth is ambiguous (see the exhibit below).
Exhibit 8: Research suggests that the impact of indirect tax reforms on GDP growth is ambiguous
Title of the paper
Consumption taxes should not in theory affect savings and investment decisions since future and
current consumption are treated equally, and they remain neutral with respect to various sources
of income. Empirical evidence is mixed; however, some studies suggest that such taxes indeed
have no impact on employment and growth, but others find that like income taxes, although to
a lesser extent they have a negative impact on growth by distorting the choice between labour
and leisure and also could depress savings.
NCAER,
December, 2009
In the Indian context, of particular relevance is the oft quoted 2009 NCAER study
titled Moving to Goods and Services Tax in India: Impact on Indias Growth and
International Trade where the authors claim that the implementation of GST will
provide gains to Indias GDP somewhere between 0.9% and 1.7%. However, the
study assumes a flawless GST with no exemptions and no extra inter-state taxes. The
GST which has been planned is far from ideal, with exemptions and inter-state taxes.
Therefore, it is difficult to comment upon the impact of GST on GDP growth unless we
have a clear picture on the structure of rates and other distortions such as the
exemptions and the inter-state tax.
Cross-country evidence suggests that GST implementation lowers inflation
Cross-country evidence suggests that the introduction of GST helps reduce inflation Cross-country evidence suggests
by removing the problem of dual taxation and thereby reducing the cost of doing that the introduction of GST helps
business.
reduce inflation by removing the
Whilst the introduction of a single GST helped reduce inflation in New Zealand as problem of dual taxation
well as Canada, inflation rose moderately in Australia and Thailand. However, the
increase in inflation in Australia as well as Thailand was driven by unique factors such
as domestic supply constraints. After adjusting for these factors, inflation in these two
countries too was lower post GST implementation.
Page 5
Economy
Exhibit 9: New Zealand - Inflation rates were lower in New
Zealand post GST implementation
5%
GST introduced
in CY86
12%
12%
10%
GST hiked in
CY89
8%
4%
3%
CPI
(YoY change, in %)
CPI
(YoY change, in %)
16%
4%
GST lowered in
CY06
3%
GST further
lowered in CY08
2%
1%
0%
0%
Pre GST (CY8185)
CY86-89
Pre GST
(CY86-90)
CY91-06
CY06-08
Post GST
(CY08-13)
3%
CPI inflation
(YoY change, in %)
CPI
(YoY change, in %)
4%
3%
2%
2%
1%
0%
5%
5%
5%
4%
3%
2%
Page 6
Economy
Exhibit 13: New Zealand - GST increased the tax-to-GDP
ratio in New Zealand
36%
36%
36%
34%
32%
Tax-to-GDP ratio
(in %)
Tax-to-GDP ratio
(in %)
31%
28%
34%
34%
34%
32%
32%
31%
30%
28%
CY86-89
Post GST
(CY90-95)
Pre GST
(CY86-90)
CY91-06
CY06-08
Post GST
(CY08-13)
29%
11%
30%
Tax to GDP ratio
(in %)
30%
29%
28%
10%
9%
9%
8%
Pre GST (CY95-00)
11%
Page 7
Economy
The introduction of a single GST is unlikely to boost GDP growth in the short run.
Its ability to add to GDP growth in the long to medium term will depend on
nuances like the structure of rates and exemptions.
The introduction of a single GST could lower inflation in India given that goods
account for more than 70% of the CPI basket and goods in India currently attract
an effective tax rate in excess of 25% i.e., more than the GST rate that India is
likely to opt for.
The introduction of a single GST is highly likely to boost Indias indirect tax
to GDP ratio, as GST will bring the unorganised sector (which accounts for 59%
of Indias economy) under the purview of taxation.
GDP growth
Whilst an oft-quoted paper by the National Council for Applied Economic Research
(NCAER), Moving to Goods and Services Tax in India: Impact on Indias Growth and
International Trade, claims that Implementation of a comprehensive GST across
goods and services is expected, ceteris paribus, to increase Indias GDP somewhere
within a range of 0.9% to 1.7%, the range of imperfections that Indias GST is likely
to have are likely to mean that GDP growth will be unaffected in the short run.
To be more specific, the imperfections with Indias likely GST regime are: exclusion of
alcohol and petroleum products from the purview of GST, and additional 1% interstate tax to compensate the producing states (click here to access the NCAER paper
http://goo.gl/IdXADx).
In fact, there is a risk that GDP growth may be affected adversely in the short run by
the 1% inter-state tax. This 1% additional inter-state tax, which has been
recommended to compensate the producing states, is likely to result in distortions
that have the potential of eating into the small gains created by a unified GST in the
early years.
In the medium term (beyond FY17), the impact of GST on GDP growth will depend
upon the structure of the tax rate:
A GST of 18%: At this rate of GST (which is also the revenue neutral rate), there An 18% GST will not result in any
will be no incremental gain in tax revenues for the Government. Also, a GST of incremental gain in tax revenues
18% will be positive for goods, as currently the effective tax rate on most goods is for the Government.
approximately 24%. However, it will negatively hurt services consumption, as
currently the service tax rate is 14%. Therefore, at the revenue neutral rate of
18%, the GST is unlikely to have a material impact on GDP growth, as there will
be no incremental gain in tax revenues, which could spur capital expenditure by
the Government and hence boost the GDP growth rate.
Page 8
Economy
A GST of 25%: At this rate, the Governments tax-to-GDP ratio will receive a 12% point boost (see the exhibit below). Assuming that the incremental tax
revenue is expended on capex, this will have a positive impact on GDP growth.
The incremental Government expenditure will be magnified through the fiscal
multiplier for capital expenditure which in Indias case is roughly 2.45 (source:
NIPFP), implying that every additional rupee spent by the Government will have a
2.45x multiplier effect on spurring further spending.
Exhibit 17: At GST of 25%, the total tax-to-GDP ratio could jump by 2% points
In ` trillion
Total indirect tax
Total direct tax
collections (Centre
collections (Centre
+ States)
+ States)
13.5
6.8
Current
At RNR of 18%
13.5
6.8
17.8%
0%
At 25%
16.4
6.8
19.7%
1.9%
Source: Indian Public Finance Statistics, NIPFP, Ambit Capital research; Note: The data pertains to FY14
Note that demand for Services will suffer under both the scenarios, given that the
current Service Tax rate of 14% is lower than the GST rate in both the scenarios.
Inflation
Inflation in India could be lowered if the GST rate is lower than the effective tax rate
payable currently on Goods.
Currently, the effective tax rate for goods in India works out to be ~24% after
accounting for all the indirect taxes taken cumulatively (see the exhibit below). The
effective tax rate for services currently stands at 14%.
Exhibit 18: Currently, the effective tax rate for most goods comes to ~24%
Sector
CENVAT
VAT
CST
8-20%
12.5%
2%
24 - 38%
Cement
8%
12.5%
2%
24%
FMCG
8%
12.5%
2%
24%
Automobiles
A GST rate of 18% (with or without the 1% additional inter-state tax) is therefore likely
to help bring down overall inflation, as most goods pay an effective tax rate of 24% in
the current set-up. However, a GST rate of 25% (with or without the 1% additional
inter-state tax) will increase the cost of most goods in India and therefore will be
inflationary.
Tax-to-GDP ratio
Indias tax-to-GDP ratio has been rangebound between 8% and 12% over the past
two decades (see the exhibit below). Furthermore, a comparison with peers as well as
with developed countries like the UK points to the vast tax-revenue-generating
potential in India.
14%
12%
10%
8%
6%
4%
2%
0%
India
15%
Russia
10%
South Africa
Thailand
5%
Malaysia
2012
2011
2010
2009
2008
2007
0%
2006
2015
2013
2011
2009
2007
2005
2003
2001
Brazil
20%
25%
2005
1999
1997
1995
1993
1991
Tax revenue
(as % of GDP)
30%
1989
Page 9
Economy
The Central tax-to-GDP ratio looks likely to rise by 1-2% points (if the GST rate is
higher than the revenue neutral rate):
1) Indias current indirect tax-to-GDP ratio (Centre + States) and the likely
boost due to GST: GST will boost the Governments revenue by increasing the
tax base, as the Indian unorganised sector will come under the purview of the
GST. Given that 59% of the total output in India is produced in the unorganised
sector, this can boost the Governments revenue to a considerable extent if GST is
able to bring even a part of the unorganised sector under its ambit.
2) Indias current direct-tax-to-GDP ratio (Centre only) and the likely boost
due to GST: One of the leading GST experts in India highlights that GST
implementation is likely to result in lifting direct tax collections, as: (1) GST
payments by tax-payers will be linked to their respective Permanent Account
Number (PAN); and (2) the National Securities Depository Limited (NSDL) which
maintains the Tax information System (TIN) will also look after the GST database.
This integration of the indirect tax system with the direct tax system will enable
authorities to triangulate information, thereby automatically leading to improved
tax buoyancy.
As explained in the previous section, a GST rate of 25% (which is substantially higher
than the revenue neutral rate) will boost the Governments tax-to-GDP ratio and if
this amount is spent on capex, this is likely to have a positive impact on GDP growth.
GST implementation could help compress Indias CAD
Indias manufactured exports could receive a boost under GST, as the introduction of Indias manufactured exports could
GST will remove inefficiencies (e.g. double taxation and complex structure) in the receive a boost under GST
system by replacing a range of taxes by one single tax. This will increase Indias
export competitiveness and hence will help reduce Current Account Deficit (CAD).
However, inefficiencies in the system such as 1% extra inter-state tax could reverse
some of the gains which could be potentially achieved through GST.
The increase in exports could have a positive impact on GDP growth, as exports of
Goods and Services constitute around 25% of GDP. The introduction of GST will make
Indian exports more competitive and hence will help in boosting exports.
Page 10
Economy
Broadly speaking, Services are going to lose regardless of what the GST rate is
(given that it will be higher than the current Service Tax rate of 14%) and Goods
can benefit if the GST rate is around the RNR of 18%. Services sectors which are
large in the context of the listed market and which look likely to suffer are
Aviation, Media and Telecommunications.
The Goods sectors which look likely to materially benefit assuming that the GST is
set at around the RNR of 18% are Automobile, Cement and FMCG.
The unorganised sector in India has hitherto avoided paying indirect taxes on
inputs and outputs and hence has had cost advantages of around 13-30%
relative to its organised counterpart. If GST is able to capture the unorganised
sector in the tax net, then this competitive advantage for this sector will be
eroded. As a result, in Goods sectors in which unorganised accounts for the
majority of the market share (e.g. light electricals, paints, pipes and
plyboards), the organised players stand to be benefit regardless of the rate at
which GST is introduced.
However, for the overall economy to benefit, GST needs to be set at around 25%
so that it can materially augment the tax-to-GDP ratio and thus give the
Government the funds required to boost GDP through capital expenditure.
Exhibit 21: Goods will benefit the most if the GST is implemented at 18%
Sector
VAT
8-20%
8%
8%
Automobiles
Cement
FMCG
Services
14%
Impact of GST
CST
Effective tax
rate
At 18%
At 25%
12.5%
2%
24 - 38%
Positive
Mixed/Positive
12.5%
2%
24%
Positive
Negative
12.5%
2%
24%
Positive
Negative
14%
Negative
Negative
Automobiles
Currently, majority of inputs used for manufacturing auto components are subject to
4% VAT, whereas auto components and automobiles are subject to 12.5% VAT
(except 4% applicable to tractors). Under GST, increased taxes on these inputs will be
available as set off, which is not the case currently.
The effective tax rate applicable on small cars (engine capacity of less than or equal
to 1999 cc) is ~24%, whilst for luxury cars (engine capacity of more than 1999 cc) it is
~38%. Post GST implementation, the sector seems likely to have lower effective taxes
which should help reduce the sticker price for consumers.
Cement
The major inputs for the sector include limestone, gypsum, coal, and fly ash. The
facilities are usually located near limestone mines; gypsum/coal is purchased either
locally or through inter-state transactions. As per the prevalent tax structure, inputs
are subject to ~4% VAT; however, cement bags are taxed at 12.5% VAT. Under GST,
increased taxes on these inputs will be available as set off, which is not the case
currently.
Furthermore, on inter-state transactions, CST is levied, the credit of which is not
available to be set off against the excise/VAT liability of the company, thus, adding to
the cascading impact of taxation.
Page 11
Economy
The aggregate effective indirect tax in the industry is ~24%. With GST in place, the
effective rate will be lowered, thus lowering the price of cement for the end
consumer.
FMCG
The main inputs for this sector, excluding cigarettes and alcohol, are edibles (wheat,
flour, and sugar), palm oil, caustic soda, flavours and fragrances, amongst others.
Inputs in the sector are levied with an excise of ~4%, except edibles, whilst VAT on
products ranges from 4.0% to 12.5%. Under GST, increased taxes on these inputs will
be available as set off, which is not the case currently.
As various products are involved in the manufacturing of FMCG products,
procurement of inputs is generally an inter-state transaction, leading to CST levy,
which, in turn, results in a cascading impact in taxation, thereby sharply increasing
input costs.
In aggregate, the effective tax rate on these products comes to ~24%. With a lowrate GST, the sector will benefit from reduced price of the final product.
Reduced cost advantage for unorganised goods manufacturers
GST is likely to increase market share gain of the organised segment, as the
unorganised segment stands to lose under the new world of GST. This will happen,
as:
GST will bring scale economies in distribution logistics and help players with
greater financial strength.
The unorganised sector will become less competitive under the GST, as input
taxes will be available for set off and the price differential between organised and
unorganised will decrease (see the exhibit below).
*Price
Market Organised Organised
difference
size
share market size (organised vs
unorganised)
(` bn)
(%)
(` bn)
(%)
379
67%
254
30%
9%
8%
6%
7%
314
65%
204
13%
1%
3%
1%
8%
Tiles
210
40%
84
30%
8%
6%
5%
11%
Pipes
120
65%
78
25%
12%
10%
0%
3%
Plyboards
150
30%
45
25%
5%
12%
4%
4%
30
48%
14
20%
4%
9%
3%
4%
Light
Electricals
Paints
Sanitaryware
Source: Ambit Capital research, management meetings, Note: * As a percentage of market prices of organised
players, ** Most important component of the price difference is excise duties
Services
The service sector will be negatively impacted by the increase in the effective tax rate
from the current 14%. The tax base for Services is also likely to increase
significantly, as GST will be levied on a much larger base of goods and services
(against the current practice of levying tax only on the Services explicitly specified).
The extent of levy of service tax on the Banking & Financial Services sector however is
restricted to fee income and charges. Fees and charges collected account for 11.5%% of the assets of listed lenders and GST will have a negative impact on the
sector by eating into this. Other services such as aviation, media and telecom too will
be negatively affected by GST.
Page 12
Economy
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joelpereira@ambitcapital.com
Nikhil Pillai
Database
(022) 30433265
nikhilpillai@ambitcapital.com
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Economy
Explanation of Investment Rating
Investment Rating
BUY
>10%
SELL
<10%
NO STANCE
We have forward looking estimates for the stock but we refrain from assigning valuation and recommendation
UNDER REVIEW
We will revisit our recommendation, valuation and estimates on the stock following recent events
NOT RATED
We do not have any forward looking estimates, valuation or recommendation for the stock
Disclaimer
This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Ambit Capital. AMBIT Capital Research is disseminated and available primarily electronically,
and, in some cases, in printed form.
Additional information on recommended securities is available on request.
Disclaimer
1.
2.
3.
4.
5.
6.
7.
AMBIT Capital Private Limited (AMBIT Capital) and its affiliates are a full service, integrated investment banking, investment advisory and brokerage group. AMBIT Capital is a Stock Broker, Portfolio
Manager and Depository Participant registered with Securities and Exchange Board of India Limited (SEBI) and is regulated by SEBI
AMBIT Capital makes best endeavours to ensure that the research analyst(s) use current, reliable, comprehensive information and obtain such information from sources which the analyst(s) believes
to be reliable. However, such information has not been independently verified by AMBIT Capital and/or the analyst(s) and no representation or warranty, express or implied, is made as to the
accuracy or completeness of any information obtained from third parties. The information, opinions, views expressed in this Research Report are those of the research analyst as at the date of this
Research Report which are subject to change and do not represent to be an authority on the subject. AMBIT Capital may or may not subscribe to any and/ or all the views expressed herein.
This Research Report should be read and relied upon at the sole discretion and risk of the recipient. If you are dissatisfied with the contents of this complimentary Research Report or with the terms of
this Disclaimer, your sole and exclusive remedy is to stop using this Research Report and AMBIT Capital or its affiliates shall not be responsible and/ or liable for any direct/consequential loss
howsoever directly or indirectly, from any use of this Research Report.
If this Research Report is received by any client of AMBIT Capital or its affiliate, the relationship of AMBIT Capital/its affiliate with such client will continue to be governed by the terms and conditions
in place between AMBIT Capital/ such affiliate and the client.
This Research Report is issued for information only and the 'Buy', 'Sell', or Other Recommendation made in this Research Report such should not be construed as an investment advice to any
recipient to acquire, subscribe, purchase, sell, dispose of, retain any securities and should not be intended or treated as a substitute for necessary review or validation or any professional advice.
Recipients should consider this Research Report as only a single factor in making any investment decisions. This Research Report is not an offer to sell or the solicitation of an offer to purchase or
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This Research Report is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied in
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Ambit Capital Private Limited is registered as a Research Entity under the SEBI (Research Analysts) Regulations, 2014.
Conflict of Interests
8.
9.
In the normal course of AMBIT Capitals business circumstances may arise that could result in the interests of AMBIT Capital conflicting with the interests of clients or one clients interests conflicting
with the interest of another client. AMBIT Capital makes best efforts to ensure that conflicts are identified and managed and that clients interests are protected. AMBIT Capital has policies and
procedures in place to control the flow and use of non-public, price sensitive information and employees personal account trading. Where appropriate and reasonably achievable, AMBIT Capital
segregates the activities of staff working in areas where conflicts of interest may arise. However, clients/potential clients of AMBIT Capital should be aware of these possible conflicts of interests and
should make informed decisions in relation to AMBIT Capitals services.
AMBIT Capital and/or its affiliates may from time to time have or solicit investment banking, investment advisory and other business relationships with companies covered in this Research Report and
may receive compensation for the same.
AMBIT Capital is not registered in the Province of Ontario and /or Province of Qubec to trade in securities and/or to provide advice with respect to securities.
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Disclosure
24. NIL
Analyst Certification
Each of the analysts identified in this report certifies, with respect to the companies or securities that the individual analyses, that (1) the views expressed in this report reflect his or her personal views
about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly dependent on the specific recommendations or views expressed in this
report.
Copyright 2015 AMBIT Capital Private Limited. All rights reserved.
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