Half Yearly Financial Report

RNS Number : 9967W

New India Investment Trust PLC

30 November 2010

NEW INDIA INVESTMENT TRUST PLC

UNAUDITED HALF YEARLY FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

Financial Summary	30 September 2010	31 March 2010	% change
Total equity shareholders' funds (£'000)	163,108	129,320	+ 26.1
Share price (mid-market)	256.3p	219.3p	+ 16.9
Net asset value per share{A}	276.1p	239.4p	+ 15.3
Discount to net asset value	7.2%	8.4%
Rupee to Sterling exchange rate	70.81	68.10	- 4.0

{A}Due to all outstanding warrants being exercised in the latest period the basic net asset value disclosed at 31 March 2010 is the diluted net asset value. This has been done to ensure the true uplift in the period is reflected.

Performance (total return)	Six months ended 30 September 2010 %	Year ended 31 March 2010 %
Share price	+ 16.9	+ 95.3
Net asset value{A}	+ 15.3	+ 100.4
MSCI India Index (Sterling adjusted)	+ 8.6	+ 104.0

{A} Due to all outstanding warrants being exercised in the latest period the basic net asset value disclosed at 31 March 2010 is the diluted net asset value. This has been done to ensure the true uplift in the period is reflected.

INTERIM BOARD REPORT

Overview

In the six months ended 30 September 2010, the Company's net asset value per Ordinary share rose by 15.3% to 276.1p. The Ordinary share price gained 16.9% to end the period at 256.3p, reflecting a narrowing of the discount to net asset value from 8.4% to 7.2%. This performance is ahead of that of the Company's benchmark, the MSCI India Index, which rose by 8.6%.

The period also saw the Company issue new Ordinary shares to the warrant-holders who had exercised their right to subscribe for Ordinary shares. A total of 12.1 million shares, representing approximately 26% of the Company's pre-existing issued share capital, were issued on 4 August 2010. Information about how the funds have invested used may be found in the Manager's Report, which also gives a detailed account of how the Company has performed.

The stock market gains over the period can be traced, primarily, to India's positive economic momentum and robust capital inflows. The country's boom showed little sign of slowing down; its economy is set to expand by 8.5% this year. To be sure, India's swift growth is not without problems. Inflation remains arguably the most pressing concern, though price pressures are moderating thanks in part to the fading effect of last year's weak monsoon, but also because of the central bank's proactive stance - interest rates have been hiked three times during the period. At the same time, businesses continue to face bottlenecks, among them weak physical infrastructure and political red-tape, while the country's public finances still need rebuilding. Encouragingly, the government's efforts to bridge the fiscal gap have had some effect; it earned a credit rating upgrade from Fitch.

As I have mentioned on previous occasions, several factors remain in India's favour. Many countries are grappling with the challenges of an ageing population. Yet India's workforce is young and growing rapidly. Its private sector is dynamic, populated by strong and increasingly global companies.

Some of these firms have established strengths in the information technology and pharmaceutical industries, while the rise of a consumer society has markedly increased opportunities for companies operating in the consumer sector.

In summary, your Company's portfolio of well-managed businesses, which have been generating strong cashflow with their focus on core businesses, performed notably well. Your Board considers that the Manager's bottom-up investment style should continue to reward investors over the long run.

Under the terms of the Investment Management Agreement with the Company, the Manager would be entitled to a performance fee of £829,000, as at 30 September 2010; the Board has decided to provide for this potential liability within the half-yearly accounts. Any performance fee payable is subject to measurement over each financial year ended 31 March and, for the year ended 31 March 2011, the fee will be more or less than the £829,000, depending on the performance of the Company over the full year. If the fee were payable at the accrued figure, which would require that outperformance achieved by the Manager is not given back in the second six months of the financial year, this would represent the first performance fee earned by the Manager since their appointment in December 2004.

Outlook

It is difficult to have a clear view on the direction of stock markets, given that loose monetary policies in much of the Western world have been driving emerging markets - India is no exception. In light of the recent strong performance in share prices, India's valuations are starting to look a little stretched but earnings are underpinned by good growth prospects and healthy corporate balance sheets. Still, some market consolidation would not come as a surprise, particularly if growth in the US and Europe stumbles, which would dent sentiment in Asia, including India. More positively, robust investment and the country's limited reliance on manufactured exports should provide stability, even if the global economy weakens.

Of late, there has also been greater scrutiny of currency movements as persistent US dollar weakness and prolonged low interest rates in the developed world have triggered large capital inflows to fast-growing emerging economies, encouraging currency appreciation. Accordingly, attention has been drawn to the rising rupee, which poses a dilemma for policymakers. Looking further out, however, India's macroeconomic performance is likely to remain strong, led increasingly by private consumption. Your Board continues to view India's future with confidence.

Share Capital

On 4 August 2010, the Company issued 12,115,997 new Ordinary shares to Warrantholders following the final warrant subscription date of 2 August 2010. As at 30 September 2010 and the date of this Report, there were 59,070,140 Ordinary shares in issue, with voting rights.

Risks and Uncertainties

The Board seeks to set out below its view of the key risks affecting its business. The Board is aware that, apart from those issues it can identify, there are likely to be matters about which it does not or cannot know which may also affect the Company.

With that reservation, the Board believes that the factors which could have the most significant adverse impact on shareholders would be likely to include:

· falls in the prices of securities in Indian companies, which may be themselves determined by local and international economic, political, currency and financial factors and management actions;

· adverse movements in the exchange rate between sterling and the rupee affecting the overall value of the portfolio;

· a lack of skill by the Company's investment management team;

· factors which affect the discount to net asset value at which the Ordinary shares of the Company trade. These may include the popularity of the investment objective of the Company, the popularity of investment trust shares in general and the ease with which the Company's Ordinary shares can be traded on the London Stock Exchange;

· changes in or breaches of the complicated set of statutory, tax and regulatory rules within which the Company seeks to conduct its business; this includes the impact on the Company of the introduction of the European Commission's Directive on Alternative Investment Fund Managers; and

· a challenge to the security of the assets of the Company.

Some of these risks can be mitigated or managed to a greater or lesser extent by the actions of the Board in appointing competent managers and custodians. In addition, the Board seeks to put in place, through its contractual arrangements and through various monitoring processes, controls which should avert (but do not guarantee the avoidance of) what might be regarded as operational mistakes. However, investment tends to involve both risk and opportunity regarding future prospects and this cannot be avoided in the search for returns.

Directors' Responsibility Statement

The Directors are responsible for preparing the Half-Yearly Financial Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

· the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'; and

· the Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FSA's Disclosure and Transparency Rules.

The Half-Yearly Financial Report for the six months ended 30 September 2010 comprises the Interim Management Report in the form of the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements, and has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. The Manager's Report is provided for information only, and is the responsibility of Aberdeen Asset Management Asia Limited.

By order of the Board

William Salomon

Chairman

29 November 2010

MANAGER'S REPORT

Overview

Indian equities rose in the six months under review, as a sharp rally towards the period-end reversed earlier losses. At first, worries about Europe's debt crisis and disappointing US economic data weighed on the stock market. But momentum picked up in September, with the benchmark rising by 13% to its highest in more than two years, as robust foreign inflows and domestic growth prospects boosted sentiment.

The Indian economy has continued to grow rapidly. GDP jumped 8.8% year-on-year in the June quarter, underpinned by robust manufacturing and services growth, and a pick-up in agricultural production. Employment increased, led by the IT sector, while the automobile sector recovered strongly following a brief but severe fall in production during the global economic crisis. The IMF predicted that the country will return to its growth rate of over 9% this calendar year.

The robust growth, however, was accompanied by a sharp expansion in the current account deficit, as sharply rising imports worsened the trade deficit. The budget deficit also persisted, as higher tax revenues, which were boosted by one-off auctions of telecom licences and asset sales, failed to make up for the shortfall. Nonetheless, the government took a crucial step towards reducing its massive fuel subsidy bill by allowing petrol prices to move freely with global markets.

Inflationary pressures also spiked, with wholesale prices reaching double digits between March and July, driven by higher food costs. Although better monsoon rains tempered prices towards the end of the period, the central bank had to raise interest rates three times, during the period, to curb inflation. The repo and reverse repo rates were hiked to 6% and 5% respectively. This stood in stark contrast to the West, where interest rates were kept at record lows as economies struggled with high unemployment and lacklustre private demand.

The combination of India's growth prospects and better yields attracted a record US$11 billion of inflows in the year to August. At first, the rupee was allowed to appreciate against the US dollar, but subsequent worries about export competitiveness led central bank governor Subbarao to warn of a possible tax on capital inflows.

Performance Attribution Analysis

For the six months to September 2010, the portfolio's net asset value rose by 15.3%, outperforming the benchmark MSCI India Index, which gained 8.6%.

The biggest contributor to relative performance over the period was the lack of exposure to the energy sector and not holding Reliance Industries proved beneficial in this respect.

Most of our materials sector holdings also boosted returns. Cement producer Ambuja Cements was buoyed by expectations of a recovery in prices in its core Northern region. Lubricant manufacturer Castrol India benefited from stable oil prices and a pick-up in demand for automobiles. Not holding Sterlite Industries also proved helpful, as the miner was weighed down by falling commodity prices and delays at one of its factories.

Also adding to relative return were our investments in the utilities sector. Gujarat Gas outperformed, thanks to steady corporate results and a resilient business. GAIL India, which boasts a 71% share of the gas distribution business, shrugged off a heavy subsidy burden in the June quarter to post a 35% year-on-year jump in net profits. Plans to double its pipeline capacity also lifted its share price.

Other holdings that did well included fast moving consumer goods company Godrej Consumer Products, which gained 51% on the back of a string of acquisitions in emerging markets, and mortgage lender Housing Development Finance Corp, which reported higher loans and better margins in the September quarter.

In contrast, consumer discretionary sector stocks underperformed, with Hero Honda leading the decline, as lower first-quarter profit margins and rising costs depressed its share price. Still, we like the motorcycle maker, given its good cashflow and growth prospects in the rural sector.

In addition, Grasim Industries lagged after it transferred all its cement businesses to wholly owned subsidiary Samruddhi Cement, which issued shares to Grasim shareholders (it should be noted that the fall in Grasim's share price was more than made up for by the value of Samruddhi's stock). We feel that the restructuring exercise will simplify and increase transparency in the group's structure. Elsewhere, software developer MphasiS corrected after negotiations with its parent Hewlett Packard concluded with lower rates. We continue to like the partnership as the parent company's long track record and stability has boosted MphasiS' revenue and net income.

Portfolio Activity

In portfolio activity, we sold government-owned lender Bank of Baroda after its strong run and in view of better opportunities elsewhere. Paint company Akzo Nobel was also divested, as we felt it lacked clear commitment to its Indian operations despite having acquired ICI India in 2008. Elsewhere, we tendered a portion of our shares in ABB India after the parent offered a significant premium over the trading price to raise its stake in the electrical engineering group.

Against this, we bought Nestle India, a market leader in the food and beverages industry which boasts healthy margins. It is able to benefit from its parent's expertise and is poised to profit from long-term consumption growth in India. In addition, we topped up several holdings with the cash received from the warrant conversion, including Housing Development Finance Corp, ICICI Bank, Infosys Technologies and Tata Consultancy Services. These companies reported steady profits for the June quarter.

Outlook

Over the long term, we expect Indian equities to outperform the region. Its structural story remains intact: demographics are favourable, it is less dependent on manufactured exports than its neighbours and private consumption is resilient. Several reforms have also seen significant progress. The government has fast-tracked some of the long pending reforms such as the goods and services tax and fuel price deregulation.

Indian equities are, however, vulnerable to profit-taking over the short term, given the recent sharp run-up. Valuations appear less compelling relative to other emerging markets, although Indian companies are enjoying healthy growth in earnings.

Aberdeen Asset Management Asia Limited

Manager

29 November 2010

GROUP STATEMENT OF COMPREHENSIVE INCOME

		Six months ended			Six months ended
		30 September 2010			30 September 2009
		(unaudited)			(unaudited)
		Revenue	Capital		Revenue	Capital
		return	return	Total	return	return	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Total revenue	3	1,590	-	1,590	880	-	880
Gains on investments held at fair value		-	22,174	22,174	-	40,036	40,036
Currency losses		-	(136)	(136)	-	(144)	(144)
		_______	_______	_______	_______	_______	_______
		1,590	22,038	23,628	880	39,892	40,772
		_______	_______	_______	_______	_______	_______
Expenses
Investment management fees		(696)	-	(696)	(435)	-	(435)
Performance fees		-	(828)	(828)	-	-	-
Other administrative expenses		(410)	(2)	(412)	(279)	-	(279)
		_______	_______	_______	_______	_______	_______
Profit/(loss) before taxation		484	21,208	21,692	166	39,892	40,058
Taxation	4	(20)	-	(20)	(18)	-	(18)
		_______	_______	_______	_______	_______	_______
Profit/(loss) for the period		464	21,208	21,672	148	39,892	40,040
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)
Basic	5	0.91	41.81	42.72	0.32	85.83	86.15
		_______	_______	_______	_______	_______	_______
Diluted	5	n/a	n/a	n/a	0.29	78.92	79.21
		_______	_______	_______	_______	_______	_______

The Group does not have any income or expense that is not included in profit for the period, and therefore the "Profit for the period" is also the "Total comprehensive income for the period", as defined in International Accounting Standard 1 (revised).

The total column of this statement represents the Statement of Comprehensive Income of the Group, prepared in accordance with International Financial Reporting Standards ("IFRS"). The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of New India Investment Trust PLC. There are no minority interests.

GROUP STATEMENT OF COMPREHENSIVE INCOME (Cont'd)

		Year ended
		31 March 2010
		(audited)
		Revenue	Capital
		return	return	Total
	Notes	£'000	£'000	£'000
Total revenue	3	1,335	-	1,335
Gains on investments held at fair value		-	65,516	65,516
Currency losses		-	(200)	(200)
		__________	__________	__________
		1,335	65,316	66,651
		__________	__________	__________
Expenses
Investment management fees		(996)	-	(996)
Performance fees		-	-	-
Other administrative expenses		(633)	-	(633)
		__________	__________	__________
Profit/(loss) before taxation		(294)	65,316	65,022
Taxation	4	(1)	-	(1)
		__________	__________	__________
Profit/(loss) for the period		(295)	65,316	65,021
		__________	__________	__________
Return per Ordinary share (pence)
Basic	5	(0.63)	139.82	139.19
		__________	__________	__________
Diluted	5	(0.57)	126.06	125.49
		__________	__________	__________

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of New India Investment Trust PLC. There are no minority interests.

GROUP BALANCE SHEET

		As at	As at	As at
		30 September	30 September	31 March
		2010	2009	2010
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss		160,835	104,064	129,110
		__________	__________	__________
Current assets
Cash at bank		3,395	532	289
Other receivables		80	179	220
		__________	__________	__________
Total current assets		3,475	711	509
		__________	__________	__________
Total assets		164,310	104,775	129,619

Current liabilities
Other payables		(1,202)	(437)	(299)
		__________	__________	__________
Total current liabilities		(1,202)	(437)	(299)
		__________	__________	__________
Net assets		163,108	104,338	129,320
		__________	__________	__________
Capital and reserves
Ordinary share capital	8	14,768	11,739	11,739
Share premium account		21,377	12,290	12,290
Special reserve		15,778	15,778	15,778
Warrant reserve		-	3,801	3,801
Warrant exercise reserve		4,029	228	228
Capital redemption reserve		4,484	4,484	4,484
Capital reserve	9	101,368	54,736	80,160
Revenue reserve		1,304	1,282	840
		__________	__________	__________
		163,108	104,338	129,320
		__________	__________	__________
Net asset value per Ordinary share (pence)
Basic	10	276.13	222.21	275.42
		__________	__________	__________
Diluted	10	n/a	197.15	239.44
		__________	__________	__________

GROUP STATEMENT OF CHANGES IN EQUITY

Six months ended 30 September 2010 (unaudited)
		Share			Warrant	Capital
	Share	premium	Special	Warrant	exercise	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2010	11,739	12,290	15,778	3,801	228	4,484	80,160	840	129,320
Net gain on ordinary activities after taxation	-	-	-	-	-	-	21,208	464	21,672
Issue of share capital upon exercise and expiry of warrants	3,029	9,087	-	(3,801)	3,801	-	-	-	12,116
	______	______	______	______	______	______	______	______	______

Balance at 30 September 2010	14,768	21,377	15,778	-	4,029	4,484	101,368	1,304	163,108
	______	______	______	______	______	______	______	______	______

Six months ended 30 September 2009 (unaudited)
		Share			Warrant	Capital
	Share	premium	Special	Warrant	exercise	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2009	11,577	11,807	15,778	4,003	26	4,484	14,844	1,134	63,653
Net gain on ordinary activities after taxation	-	-	-	-	-	-	39,892	148	40,040
Issue of share capital upon exercise of warrants	162	483	-	(202)	202	-	-	-	645
	______	______	______	______	______	______	______	______	______
Balance at 30 September 2009	11,739	12,290	15,778	3,801	228	4,484	54,736	1,282	104,338
	______	______	______	______	______	______	______	______	______

Year ended 31 March 2010 (audited)
		Share			Warrant	Capital
	Share	premium	Special	Warrant	exercise	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2009	11,577	11,807	15,778	4,003	26	4,484	14,844	1,134	63,653
Net gain/(loss) on ordinary activities after taxation	-	-	-	-	-	-	65,316	(295)	65,021
Return of unclaimed dividends	-	-	-	-	-	-	-	1	1
Issue of share capital upon exercise of warrants	162	483	-	(202)	202	-	-	-	645
	______	______	______	______	______	______	______	______	______

Balance at 31 March 2010	11,739	12,290	15,778	3,801	228	4,484	80,160	840	129,320
	______	______	______	______	______	______	______	______	______

GROUP CASH FLOW STATEMENT

	Six months ended	Six months ended	Year ended
	30 September	30 September	31 March
	2010	2009	2010
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating activities
Profit before taxation	21,692	40,058	65,022
Gains on investments held at fair value through profit or loss	(22,174)	(40,036)	(65,516)
Net losses on foreign exchange	136	144	200
Net (purchases)/sales of investments held at fair value through profit or loss	(9,552)	(1,812)	(1,379)
Increase in amounts due from brokers	-	(108)	-
Decrease/(increase) in other receivables	128	117	(31)
Increase/(decrease) in amounts due to brokers	-	199	(11)
Increase in other payables	896	14	91
	__________	__________	__________

Net cash outflow from operating activities before interest and corporation tax	(8,874)	(1,424)	(1,624)

Corporation tax paid	-	(12)	-
	__________	__________	__________
Net cash outflow from operating activities	(8,874)	(1,436)	(1,624)

Financing activities
Exercise of warrants	12,116	645	645
Return of unclaimed dividends	-	-	1
	__________	__________	__________
Net cash inflow from financing activities	12,116	645	646
	__________	__________	__________
Net increase/(decrease) in cash and cash equivalents	3,242	(791)	(978)

Effect of foreign exchange rate changes	(136)	(144)	(200)
Cash and cash equivalents at the start of the period	289	1,467	1,467
	__________	__________	__________
Cash and cash equivalents at the end of the period	3,395	532	289
	__________	__________	__________

Notes to the Interim Report

1.	Principal activity
	The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 -1159 of the Corporation Tax Act 2010 (formerly Section 842 of the Income and Corporation Taxes Act 1988).

	The principal activity of its foreign subsidiary is similar in all relevant respects to that of its United Kingdom parent.

Accounting policies

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB (IFRIC). The Group's financial statements have been prepared using the same accounting policies applied for the year ended 31 March 2010 financial statements, which received an unqualified audit report.

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
3.	Income	£'000	£'000	£'000
	Income from investments
	Overseas dividends	1,586	876	1,330
	Other operating income
	Deposit interest	4	4	5
		__________	__________	__________
	Total income	1,590	880	1,335
		__________	__________	__________

			Six months ended	Six months ended	Year ended
			30 September 2010	30 September 2009	31 March 2010
4.	Tax on ordinary activities		£'000	£'000	£'000
	(a)	Current tax:
		Overseas taxation	20	18	1
			__________	__________	__________

	(b)	Factors affecting the tax charge for the year or period
		The tax charged for the period can be reconciled to the profit per the Group Statement of Comprehensive Income as follows:

			Six months ended	Six months ended	Year ended
			30 September 2010	30 September 2009	31 March 2010
			£'000	£'000	£'000
		Profit before tax	21,692	40,058	65,022

		Corporation tax on profit at the standard rate of 28% (September 2009 & March 2010 - 28%)	6,074	11,216	18,206
		Effects of:
		Gains on investments held at fair value through profit or loss not taxable	(6,209)	(11,210)	(18,344)
		Currency losses not taxable	38	40	56
		Effect on subsidiary of different tax rate levied in another jurisdiction	117	(28)	83
			__________	__________	__________
		Current tax charge	20	18	1
			__________	__________	__________

		The Company is exempt from corporation tax on capital gains provided it obtains agreement from HM Revenue & Customs that the tests within Sections 1158 -1159 of the Corporation Tax Act 2010 have been met. Under Mauritian taxation laws, no Mauritian capital gains tax is payable on profits arising from the sale of securities.

5.	Return per Ordinary share
	The basic earnings per Ordinary share is based on the net profit after taxation of £21,672,000 (30 September 2009 - net profit of £40,040,000; 31 March 2010 - net profit of £65,021,000), and on 50,727,978 (30 September 2009 - 46,475,033; 31 March 2010 - 46,713,932) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

	The calculation of the diluted returns per Ordinary share is carried out in accordance with IAS 33, "Earnings per Share". For the purposes of calculating diluted returns per Ordinary share, the number of Ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Warrants by reference to the average share price of the Ordinary shares during the period. During the half year to September 2010 all remaining warrants were exercised and there is therefore no dilution calculation required.

	The basic and diluted earnings per Ordinary share can be further analysed between revenue and capital as follows:

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
	Basic	p	p	p
	Revenue return per share	0.91	0.32	(0.63)
	Capital return per share	41.81	85.83	139.82
		__________	__________	__________
	Total	42.72	86.15	139.19
		__________	__________	__________

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
		£'000	£'000	£'000
	Revenue return total	464	148	(295)
	Capital return total	21,208	39,892	65,316
		__________	__________	__________
	Total	21,672	40,040	65,021
		__________	__________	__________

	Weighted average number of Ordinary shares in issue	50,727,978	46,475,033	46,713,932
		__________	__________	__________

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
	Diluted	p	p	p
	Revenue return per share	n/a	0.29	(0.57)
	Capital return per share	n/a	78.92	126.06
		__________	__________	__________
	Total	n/a	79.21	125.49
		__________	__________	__________

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
		£'000	£'000	£'000
	Revenue return total	n/a	148	(295)
	Capital return total	n/a	39,892	65,316
		__________	__________	__________
	Total	n/a	40,040	65,021
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	n/a	50,549,570	51,813,734
		__________	__________	__________

6.	Dividends on equity shares
	No interim dividend has been declared in respect of either the six months ended 30 September 2010 or 30 September 2009.

	During the year ended 31 March 2010, there was no dividend paid up from the subsidiary company to the parent company.

7.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss. These have been expensed through capital and are included within gains on investments in the Group Statement of Comprehensive Income. The total costs were as follows:

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
		£'000	£'000	£'000
	Purchases	65	22	39
	Sales	28	19	40
		__________	__________	__________
		93	41	79
		__________	__________	__________

8.	Ordinary share capital
	During the period, the remaining 12,115,997 (six months ended 30 September 2009 and year ended 31 March 2010 - 644,685) warrants were exercised at a price of 100p each, creating 12,115,997 (six months ended 30 September 2009 and year ended 31 March 2010 - 644,685) new Ordinary shares which were issued for a total consideration of £12,115,997 (six months ended 30 September 2009 and year ended 31 March 2010 - £644,685). As a result of this, £3,801,033 (six months ended 30 September 2009 and year ended 31 March 2010 - £202,251) was transferred from the warrant reserve to the warrant exercise reserve.

	As at 30 September 2010 there were 59,070,140 (30 September 2009 and 31 March 2010 - 46,954,143) Ordinary shares in issue.

	Following the final exercise date of 2 August 2010, as at 30 September 2010 there were no (30 September 2009 and 31 March 2010 - 12,115,997) warrants in issue.

9.	Capital reserve
	The capital reserve reflected in the Group Balance Sheet at 30 September 2010 includes gains of £16,185,000 (30 September 2009 - gains of £49,320,000; 31 March 2010 - gains of £71,363,000) which relate to the revaluation of investments held at the reporting date.

10.	Net asset value per Ordinary share
	The basic net asset value per Ordinary share is based on a net asset value of £163,108,000 (30 September 2009 - £104,338,000; 31 March 2010 - £129,320,000) and on 59,070,140 (30 September 2009 and 31 March 2010 - 46,954,143) Ordinary shares, being the number of Ordinary shares in issue at the period end.

	The diluted net asset value per Ordinary share has been calculated by reference to the total number of Ordinary shares in issue at the period end and on the assumption that those warrants which are not exercised at the period end, amounting to 12,115,997 warrants as at 30 September 2009 and 31 March 2010, were exercised on the first day of the financial period at 100p per share, giving a total of 59,070,140 Ordinary shares. As the warrants have now expired, a diluted net asset value calculation is no longer applicable for 30 September 2010.

11.	Half-Yearly Financial Report
	The financial information contained in this Half-Yearly Financial Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2010 and 30 September 2009 has not been audited.

	The information for the year ended 31 March 2010 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 237 (2),(3) or (4) of the Companies Act 2006.

	The Half-Yearly Financial Report has not been reviewed or audited by the Company's auditors.

12.	Approval
	The Half-Yearly Financial Report was approved by the Board on 29 November 2010.

13.	Half-Yearly Report The Half-Yearly Report will be posted to shareholders in December 2010 and copies will be available from the Secretaries or via the Company's website at www.newindia-trust.co.uk.