This is the keynote presentation at the Kingston Smith Asia Pacific Conference held on 25 May 2010 at J.W. Mariott Mumbai by Shailesh Bhuta Founder and Managing Partner of Bhuta Shah & Co.

1. Asia Pacific Conference
Welcome Note by
Shailesh Bhuta

2. Welcome
To
Mumbai, India
All Delegates
Asia Pacific
KS
International

3.  I welcome K. S. I Asia Pacific
conference delegates from four
countries over and above delegates
from Chennai, Delhi and Mumbai
 I cordially and heartily welcome Mr.
Martin Burchmore a senior partner of
Kingston Smith LLP from U.K.
 I welcome Mr. Michael Martin partner
of CPW group Pvt. Ltd., Australia, Mr.
Zaker Ahmed & Mohitul Haq from
Ahmed Zaker & Co., Bangladesh.

4.  I extend my heartiest welcome to Mr. Karen Lin and Mr. Willy Huang from Chung
Sun CPA from Taiwan.
 Over and above this distinguished foreign delegates I welcome very coordially,
heartily and warmly Padmashri and Past President of Institute of Chartered
Accountants of India Mr. T. N. Manoharan and his two partners Mr. K.S. Yoganandh
and Mr. V. Manoj from M/s. Manohar Chowdhary & Associates from Chennai.
 I welcome very heartily our elder statesman and senior Chartered Accountant Mr.
R. K. Mehra from Mehra Goel and Co., New Delhi
 I also welcome Mr. Prakkash Muni, his partner Mr. Premal Gandhi and his
colleagues Mr. Krushesh Thakkar and Mr. Hiren Muni and Mr. Arun Shah
 Last but not the least, I welcome my partners Mr. Shailesh Parmar, Mr. Jitendra
Shah, Mr. Mitesh Kothari and my colleagues Mrs. Harsha S. Parmar, Ms. Alka
Sharma and Ms. Kanan Bhuta.

5. India has Population: 1..2 billion people –
second most populous country. It also happens to be
largest democracy in the world.
Major languages spoken: English, Hindi
Culture: A versatile customs and varied lifestyles
with multiple languages, many religions
“India is an interesting combination - world class
talent that can speak English and a strong
technological expertise.”
Tony Wright , Chairman- Lowe Worldwide, UK
based international creative advertising agency.

6.  India is 4th
largest economy in the world in
terms of PPP with a GDP of US$ 3.86
trillion.
 India has the world's second largest
labour force, with 516.3 million people.
 Youth population in India as per the latest
census report was 41.05%
 Indian economy grew at 7.2% in 2009-10,
with the industrial and the service sectors
growing at 8.2% and 8.7% respectively.
 India received FDI worth US$ 20.92
billion during April-December 2009,
taking the cumulative amount of FDI
inflows from Aug’91 to Dec’09 to US$
127.46 billion.
 As on March 2010, India's foreign
exchange reserves totalled US$ 277.04
billion, an increase of US$ 24.71 billion
over the same period last year.
 Market capitalization of Indian Corporates
on BSE is US$1.41 trillion.

7.  Net tax revenue generation for F.Y 2009-10 was US$ 104 billion,
which includes direct and indirect tax collection.
 Recent big-ticket overseas acquisitions by Indian Multi National
companies:
 India-based telecom company, Bharti Airtel, has acquired the
African assets of Kuwait-based Zain Telecom, in a US$ 10.7-billion
deal which makes Bharti Airtel the world's fifth-largest mobile
phone operator.
 Tata Steel acquired UK- based Corus for about US$ 8 billion.
 Hindalco has acquired Novelis for US$ 6 billion.
 Tata group acquired of Ford's Jaguar and Land Rover
 The private equity and venture capital industry is likely to witness
estimated investments worth $70-75 billion in 2010-2015 at existing
growth rates. However, with proactive encouragement and incentives
from the government, a $100-billion investment target is possible
during this period, according to the data released by IDG Ventures
India.

8.  IT-ITeS: The overall Indian software and services industry revenue is
estimated to have grown from US$ 10.2 billion in 2001-02 to reach
US$ 58.7 billion in 2008-09—translating to a CAGR of about 26.9%.
 Pharmaceutical: India's pharmaceutical industry is now the third
largest in the world in terms of volume and 14th in terms of value.
The leading Indian Pharmaceuticals companies are:
 1) Piramal Healthcare was acquired by Abbot Laboratories for US$
3.2 billion
 2) Daichi- Sanko acquired shares of Ranbaxy Laboratories for US$
4.6 billion for 64% of its stake
 3) Sun Pharma

9.  Retail: The Indian retail market, which is the 5th
largest retail destination
globally, has been ranked as the most attractive emerging market for
investment in the retail sector.
Retail giants Carrefour SA and Walmart have entered india as there is
emmense scope to cash-in on retail market as the organised retail market
accounts for only 5% of US$ 450 billion.
 Real Estate: The real estate sector is second only to agriculture in terms
of employment generation and contributes heavily towards the GDP. India
leads the pack of top real estate investment markets in Asia for 2010.
 Media & Entertainment: The media and entertainment industry in India
is likely to grow at a CAGR of 12.5% per annum over the period between
2009-13 and touch US$ 20.09 billion by 2013. Reliance Entertainment will
pump in about US$ 1-2 billions in Steven Spielberg’s Company DreamWorks
Inc. to jointly make Hollywood films

10.  Textile: Indian textile industry contributes about 14% to industrial
production, 4% to the country's GDP and 16.63% to export earnings.
 Food Industry: The Indian food and beverages market is expanding
rapidly and is projected to grow at a CAGR of 9 % during 2009-13 and reach
US$ 580 billion by 2013. Pepsi Company which is headed by Indra Nooyi
has also committed to pump in more than 500 million dollars in next few
years in Indian operation. Pepsico had a great run last year with exceptional
40% growth in the Indian beverage business
 Gems & Jewellery: The Indian gems and jewellery industry is the fastest
growing jewellery market in the world. The domestic jewellery market in
India is pegged at US$ 16 billion.

11.  The FII investment in India stands at 77 billion dollars.
 The average assets under management of the mutual fund
industry stood at US$ 174.06 billion for the month of
February 2010, an increase of nearly 36% from February
2009.
 The RBI has the 10th
largest gold reserves in the world after
spending US$ 6.7 billion towards the purchase of 200 metric
tonnes of gold from the IMF in November 2009.
 India is the 5th
largest life insurance market in the emerging
insurance economies globally and the segment is growing at
a healthy 32-34% annually.
1. Tata AIG
2. Bajaj Allianz
3. ICICI - Prudential

12.  India's infrastructure sector will require US$ 1.7 trillion
investment in the next 10-years.
 According to the Planning Commission, US$ 19.6 billion
will be invested in the ports sector during 2007-2012.
 The US$ 18 billion Indian Railways industry has one of the
largest developed networks in the world. The private
investment in railways could increase from the current US$
217.88 million to US$ 1.08 billion in the next three years.
 India has the world's second largest road network,
aggregating over 3.34 million kilometers. The potential
investment in the sector is expected to be to the tune of
US$ 107 billion in next 5 years.

13.  The services sector has been at the forefront of the rapid
growth of the Indian economy, contributing nearly 63% of
the GDP.
 India’s education sector presents an investment
potential of US$ 100 billion over the next five years.
 The services sector accounted for a huge 24.3% of the
total foreign direct investment (FDI) inflow in 2008. In
actual terms, the FDI inflow to this sector has grown 32
times in the past five years to US$ 6.78 billion in 2008.

14.  Changing paradigm of the corporate and tax laws:
 Direct Tax Code
 Goods and Service Tax
 IFRS
 LLP / Companies Law
 A number of studies have indicated that the KPO field is
expected to grow by 45% by the year 2010, and of the $16
billion that will be generated by this industry, over half of it
will come from India.

15.  India will overtake China as the fastest-growing economy in the world.
Driven by a projected double digit annual growth Indian GDP is set to
quadruple over the next ten years and the country is likely to be a
Rs.205-trillion (USD 4.5 trillion) economy by 2020.
 India will become the largest English-speaking nation in the world,
overtaking the US.
 India will also be the fifth largest maker of, as well as market for, cars.
 India will account for 10% to 12% of world economic growth, the
country will become a gigantic magnet for the world's companies that
will come to do business.
 India is poised to take over the developed countries to emerge at the
top of the heap in the global economic superpower league by 2030,
says a survey.

16.  A well known firm of Chartered
Accountants based in India
rendering professional
services since 1986.
 Employs around 100 people
under the supervision of 5
partners, 3 associates and 11
qualified Chartered
Accountants. Personnel
include CAs, MBAs, CS, LLBs,
and Graduates.
 2,400 sq. ft. office with state-
of-the-art infrastructure,
situated in Nariman Point,
world’s 5th
most expensive
office location.

17.  Taxation
 Tax Planning
 Tax Compliance
 Representation
 Appellate Proceedings
 International Taxation
 Transfer Pricing
 Cross-border structuring
 Tax treaty advisory

18.  Audit & Assurance
 Statutory Audits
 Management Audits
 Inspection / Special Audits
 Corporate Advisory
 Corporate structuring
 Accessing Capital Markets
 Merger & Amalgamation
 Arbitration and Conciliation

20. I am glad to have you all here
and wish you a pleasant stay in
India.
I hope that the conference
would prove to be mutually
beneficial interaction and a
stepping stone for long term
sustainable development of
the participants.
“India's rapid growth rates and its ‘large pool of educated and
skilled English-speaking workers’ make it an attractive partner.”
Sajjad Karim - UK Member of the European Parliament