Half Yearly Report

RNS Number : 1292D

New India Investment Trust PLC

26 November 2009

 



NEW INDIA INVESTMENT TRUST PLC

UNAUDITED HALF YEARLY FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

Financial Summary	30 September 2009	31 March 2009	% Change
Total equity shareholders' funds (£'000)	104,338	63,653	+ 63.9
Share price (mid-market)	178.5p	112.25p	+ 59.0
Diluted net asset value per share	197.2p	129.4p	+ 52.4
Discount to diluted net asset value	9.5%	13.2%
Rupee to Sterling exchange rate	76.94	72.72	- 5.8

Performance (total return)	Six months ended 30 September 2009	Year ended 31 March 2009
Share price	59.0%	-19.1%
Diluted net asset value	52.4%	-19.7%
Undiluted net asset value	61.7%	-22.6%
MSCI India Index (Sterling adjusted)	71.3%	-33.8%

INTERIM BOARD REPORT

Overview

In the six months ended 30 September 2009, the Company's fully diluted net asset value rose by 52.4% and the undiluted net asset value rose by 61.7%. This compared with a gain in the benchmark, the MSCI India Index (sterling adjusted), of 71.3%. These figures are expressed on a total return basis. During the period, the Ordinary share price total return was 59.0%, reflecting a narrowing, from 13.2% to 9.5%, of the discount to the fully diluted net asset value.  

While the portfolio's value rose by 64% during the period, a sharp increase in absolute terms, it was a little behind the benchmark. This reflects the nature of the rally, which was on the whole led by what we would describe as the poorer quality companies which had underperformed in 2008. Such trends rarely last very long, and investor attention is expected to revert back, at some point, to the stronger, more stable companies which your Company holds, which outperformed so significantly in relative terms in the sharp downturn in markets in our last financial year. Most notably, investor euphoria greeted the Congress party's resounding victory in May with the MSCI India Index rising by over 17% in a record one-day gain. In this bullish environment, investors ignored fundamentals, switching their focus from the conservative companies that your Manager favours to investments with riskier financial profiles.

There is no doubt that India continues to be one of the world's most exciting growth stories. Thanks to market liberalisation which began in the mid-1980s, India has emerged as a global player in information technology and pharmaceuticals. Moreover, unlike many other developing economies, India is not reliant on low value-added manufacturing activities. This has helped the economy expand further in the March and June quarters of 2009 with the IMF predicting that it will grow by 6.4% in 2010.

And yet, India has not reached its full potential. Handicapped by its poor infrastructure, there remains still further scope for expansion. Robust domestic demand will fuel growth. The country is still in the early stages of its growth trajectory: nominal GDP per capita stands at just US$1,017. Nonetheless, India faces an uphill battle. Its public finances are poor, while the new government announced in its July budget that the deficit could widen on additional spending. Meanwhile, the central bank warned that consumer price inflation might rise to 5% by March 2010 as the poor monsoon pushes up food prices. Despite numerous macro shortcomings, local businesses have managed to grow, thanks to a thriving entrepreneurial culture and strong legal system.

Further information regarding performance can be found in the Manager's Review.

Outlook

Much of what is happening in world stockmarkets, including India's, is a consequence of the massive fiscal and monetary stimulus being undertaken by many governments. The consequences of the tap being turned off are difficult to predict. As for India, what is clear is that the country's growth prospects are excellent, its financial sector does not have the problems that plague many Western countries and it has many high quality companies in which to invest. Therefore, looking beyond whatever volatility may occur in coming months, we remain confident of long-term investment prospects.

Warrants

On 14 August 2009, the Company issued 644,685 new Ordinary shares to Warrantholders who had exercised their right to subscribe for Ordinary shares. 12,115,997 Warrants remain in issue and the final date for Warrantholders to exercise their right to subscribe for Ordinary shares will be 

2 August 2010.

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 New India Investment Trust.

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 and financial factors and management actions

-    adverse movements in the exchange rate between sterling and the rupee as well as between other currencies affecting the fortunes of the companies in which we invest

-    a lack of skill in New India's investment management team factors which affect the discount to net asset value at which the shares of New India 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 shares and warrants of New India can be traded on the London Stock Exchange

-    changes in or breaches of the complicated set of statutory, tax and regulatory rules within which New India seeks to conduct its business, as highlighted by the EU proposals regarding the regulation of Alternative Investment Funds (meaning any fund which is not regulated as a UCITS fund, and which, therefore, includes investment trusts)

-    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 we cannot avoid either in our 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 2009 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 Review is provided for information only, and is the responsibility of Aberdeen Asset Management Asia Limited.

By order of the Board

William Salomon

Chairman

25 November 2009

MANAGER'S REVIEW

Overview

The Indian equity market advanced strongly in the six months under review. Overall, shares gained from robust foreign inflows, improving economic and corporate fundamentals, and the Congress-led coalition's decisive victory. The rally, however, was briefly interrupted in July, on disappointment over lack of policy initiatives in the Budget, and in August, on worries about the weak monsoon and rising inflation. Finally, optimism about the September quarter results season provided further impetus.

On the economic front, India was among the few countries in the world which continued to grow throughout the global recession as a result of strong policy support and a vibrant domestic economy. India's GDP expanded by 6.1%, year-on-year, in the quarter to 30 June 2009, a modest improvement over the preceding three months. For the fiscal year ending March 2010, both the government and the Reserve Bank of India (the "RBI") expect the economy to grow by around 6% or more. Admittedly, this is significantly slower than the average 9% expansion prior to the global financial crisis, but still impressive in light of a weak global economy.

In monetary policy, the RBI joined other central banks in cutting interest rates to revive growth. The main lending rate was lowered to 4.75% and the short-term borrowing rate trimmed to 3.25%. Monetary and fiscal measures have been instrumental in India's resilient economic performance, helping spur local demand and temper a weak export sector. The increase in government spending, however, stretched already-poor state finances - the fiscal deficit is now projected to rise to 6.8% of GDP.

Meanwhile, inflation remains a concern. Consumer prices were elevated by the widening drought which drove up food prices. The central bank cautioned that inflation could rise to 5% by March 2010 and although the government had announced that food stockpiles could avert further inflation, rising commodity and food prices, coupled with the pick-up in economic activity, could alter the RBI's hitherto accommodative interest rate stance.

In politics, the Congress party was swept back to power with its biggest win in 18 years. The strong mandate allows Congress to govern without relying on the Communist Party which had held back much-needed reforms. Hopes that the new government would drive economic and governance reforms were raised, but the July budget was light on structural reform. However, the budget did address some obstacles to India's economic well-being which included augmenting rural incomes and credit and improving infrastructure.

Performance Attribution Analysis

The portfolio posted a gross return of 64.0%, in sterling terms, for the six months ended 30 September 2009, but underperformed the benchmark MSCI India Index, which gained 71.3%. The portfolio outperformed the market significantly in the last financial year, although falling sharply in absolute terms. From inception to 30 September 2009, the portfolio has returned 166.1% while the Index has returned 187.5%.

The biggest positive contributor to relative performance was the lack of exposure to index heavyweight Reliance Industries. The petrochemical firm's share price was weak as investors were unnerved by the continuing row between the Ambani brothers which centred on the pricing and supply of natural gas in the KG basin by Reliance Industries to Reliance Natural Resource. Also adding to relative return were the investments in information technology stocks. The holdings in Infosys Technologies, Tata Consultancy Services, MphasiS and CMC rallied on upbeat results and signs of a recovery in demand for software services that will boost corporate earnings. 

Our holding in Bharti Airtel cost us performance over the six months. The merger talks between Bharti and South Africa's telco MTN collapsed after the pair failed to secure regulatory approval for the US$24 billion transaction. Having underperformed on concerns over the deal, Bharti's share price rose after the talks were abandoned, on hopes that the mobile-phone operator would focus on its home market. However, its stock price subsequently corrected, as did those of other operators, on fears of a looming price war. While this may temporarily damage Bharti's profitability, we are confident that it has the clout to remain relatively unscathed, and could strengthen its competitive position over the longer term.

Underperformance also came from not holding certain stocks in the consumer discretionary sector. Hero Honda was resilient as the two-wheeler segment held up better over the last 2 years but non-holdings like Mahindra & Mahindra and Maruti Suzuki recovered from the collapse over the same period as liquidity rotated to these stocks that had underperformed. We prefer Hero Honda as it has a stronger market position, product offering and a more extensive distribution network.

The overweight allocation to healthcare also cost the Company performance. Increased regulation in the global pharmaceutical industry weighed on sentiment, even though the holdings in GlaxoSmithKline and Sun Pharmaceutical posted good quarterly earnings figures. The sector is generally insensitive to the economic cycle and thus tends to lag in the early recovery phase of equity markets.

The materials holdings also underperformed during the period. Grasim Industries gained from steady demand and firm prices, but lagged other more speculative commodity plays, such as Sterlite Industries and Jindal Steel & Power, which saw strong recoveries following sharp share price falls last year. However, these heavily leveraged cyclical stocks do not meet our strict investment criteria.

Portfolio Activity

Over the period, we added three new stocks to the portfolio. We initiated a position in Ambuja Cements to gain greater exposure to that sector, where long-term prospects remain strong, given the burgeoning demand from housing and infrastructure projects. One of the two listed Indian subsidiaries of Swiss cement multinational Holcim, Ambuja Cements has a good geographical spread and complements our holding in Grasim Industries. The other new additions are Castrol India, a globally strong brand which has proved resilient in the downturn, and HDFC Bank, a leading domestic lender with a good management team and strong franchise.

Against this, we trimmed some positions after strong share price rises, including Hero Honda and Grasim Industries; the holding in Bank of Baroda was also reduced.

Outlook

The swift turnaround in stock markets worldwide has been remarkable but conditions are likely to remain volatile. In India, liquidity has supported the market rally. Resilient private spending and a large policy stimulus have also helped the economy weather the slowdown. 

That said, the global economic environment remains subdued, while the poor monsoon is hindering the country's near-term prospects. Weak rains will likely squeeze rural income. Falling farm output will push up food prices and inflation, which may require a response from the RBI which might constrain economic growth. While programmes to help rural households may alleviate the impact of lower crop production, the central bank faces a tricky balancing act in deciding when to reverse its easy monetary policy as price pressures mount. Policy concerns mean India could lag its regional peers, where tightening may not be required as soon. Longer term, however, growth prospects for the country, with its attractive demographics, high domestic savings rate and rising industrialisation, remain excellent. 

In this environment, we continue to uphold our disciplined process of investing in fundamentally strong companies. Although their shares may underperform during momentum-driven rallies, we believe that their businesses will deliver solid long-term results.

Aberdeen Asset Management Asia Limited

GROUP INCOME STATEMENT 

		Six months ended			Six months ended
		30 September 2009			30 September 2008
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
		return	return	return	return	return	return
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Total revenue	3	880	-	880	1,001	-	1,001
Gains/(losses) on investments held at fair value		-	40,036	40,036	-	(11,814)	(11,814)
Currency losses		-	(144)	(144)	-	(49)	(49)
		_______	_______	_______	_______	_______	_______
		880	39,892	40,772	1,001	(11,863)	(10,862)
		_______	_______	_______	_______	_______	_______
Expenses
Investment management fees		(435)	-	(435)	(404)	-	(404)
VAT recoverable on investment management fees		-	-	-	-	-	-
Other operating expenses		(279)	-	(279)	(262)	-	(262)
		_______	_______	_______	_______	_______	_______
Profit/(loss) before tax and finance costs		166	39,892	40,058	335	(11,863)	(11,528)
Finance costs		-	-	-	-	-	-
		_______	_______	_______	_______	_______	_______
Profit/(loss) before taxation		166	39,892	40,058	335	(11,863)	(11,528)
Taxation	4	(18)	-	(18)	(23)	-	(23)
		_______	_______	_______	_______	_______	_______
Profit/(loss) for the period		148	39,892	40,040	312	(11,863)	(11,551)
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)
Basic	5	0.32	85.83	86.15	0.66	(25.26)	(24.60)
		_______	_______	_______	_______	_______	_______
Diluted	5	0.29	78.92	79.21	0.62	(23.49)	(22.87)
		_______	_______	_______	_______	_______	_______

The total column of this statement represents the Profit & Loss Account 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 INCOME STATEMENT (Cont'd)

		Year ended
		31 March 2009
		(audited)
		Revenue	Capital	Total
		return	return	return
	Notes	£'000	£'000	£'000
Total revenue	3	1,347	-	1,347
Gains/(losses) on investments held at fair value		-	(19,157)	(19,157)
Currency losses		-	(61)	(61)
		__________	__________	__________
		1,347	(19,218)	(17,871)
		__________	__________	__________
Expenses
Investment management fees		(718)	-	(718)
VAT recoverable on investment management fees		33	-	33
Other operating expenses		(563)	(2)	(565)
		__________	__________	__________
Profit/(loss) before tax and finance costs		99	(19,220)	(19,121)
Finance costs		(6)	-	(6)
		__________	__________	__________
Profit/(loss) before taxation		93	(19,220)	(19,127)
Taxation	4	(8)	-	(8)
		__________	__________	__________
Profit/(loss) for the period		85	(19,220)	(19,135)
		__________	__________	__________
Return per Ordinary share (pence)
Basic	5	0.18	(41.21)	(41.03)
		__________	__________	__________
Diluted	5	0.17	(39.18)	(39.01)
		__________	__________	__________

  GROUP BALANCE SHEET

		As at	As at	As at
		30  September	30  September	31 March
		2009	2008	2009
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss		104,064	70,433	62,215
		__________	__________	__________
Current assets
Cash and cash equivalents		532	614	2,090
Other receivables		179	471	190
		__________	__________	__________
Total current assets		711	1,085	2,280
		__________	__________	__________
Total assets		104,775	71,518	64,495
Current liabilities
Bank overdraft		-	-	(623)
Other payables		(437)	(281)	(219)
		__________	__________	__________
Total current liabilities		(437)	(281)	(842)
		__________	__________	__________
Net assets		104,338	71,237	63,653
		__________	__________	__________
Capital and reserves
Ordinary share capital		11,739	11,577	11,577
Share premium account		12,290	11,807	11,807
Special reserve		15,778	15,778	15,778
Warrant reserve		3,801	4,003	4,003
Warrant exercise reserve		228	26	26
Capital redemption reserve		4,484	4,484	4,484
Capital reserve	8	54,736	22,201	14,844
Revenue reserve		1,282	1,361	1,134
		__________	__________	__________
		104,338	71,237	63,653
		__________	__________	__________
Net asset value per Ordinary share (pence)	9
Basic		222.21	153.83	137.45
Diluted		197.15	142.20	129.36

  GROUP STATEMENT OF CHANGES IN EQUITY 

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 profit 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
	______	______	______	______	______	______	______	______	______
Six months ended 30 September 2008 (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 2008	11,966	11,790	17,981	4,010	19	4,089	34,064	1,049	84,968
Net (loss)/profit on ordinary activities after taxation	-	-	-	-	-	-	(11,863)	312	(11,551)
Issue of share capital upon exercise of Warrants	6	17	-	(7)	7	-	-	-	23
Purchase of own shares	(395)	-	(2,192)	-	-	395	-	-	(2,192)
Expenses of repurchase	-	-	(11)	-	-	-	-	-	(11)
	______	______	______	______	______	______	______	______	______
Balance at 30 September 2008	11,577	11,807	15,778	4,003	26	4,484	22,201	1,361	71,237
	______	______	______	______	______	______	______	______	______
Year ended 31 March 2009 (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 2008	11,966	11,790	17,981	4,010	19	4,089	34,064	1,049	84,968
Net (loss)/profit on ordinary activities after taxation	-	-	-	-	-	-	(19,220)	85	(19,135)
Issue of share capital upon exercise of Warrants	6	17	-	(7)	7	-	-	-	23
Purchase of own shares	(395)	-	(2,192)	-	-	395	-	-	(2,192)
Expenses of repurchase	-	-	(11)	-	-	-	-	-	(11)
	______	______	______	______	______	______	______	______	______
Balance at 31 March 2009	11,577	11,807	15,778	4,003	26	4,484	14,844	1,134	63,653
	______	______	______	______	______	______	______	______	______

  GROUP CASH FLOW STATEMENT

	Six months ended	Six months ended	Year  ended
	30 September	30 September	31  March
	2009	2008	2009
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating activities
Profit/(loss)profit before tax	40,058	(11,528)	(19,127)
(Gains)/losses on investments held at fair value through profit or loss	(40,036)	11,814	19,157
Net losses on foreign exchange	144	49	61
Net (purchases)/sales of investments held at fair value through profit or loss	(1,812)	2,579	3,454
(Increase)/decrease in amounts due from brokers	(108)	(215)	113
Decrease/(increase) in other receivables	117	(37)	(95)
Increase/(decrease) in amounts due to brokers	199	(432)	(446)
Increase/(decrease) in other payables	14	(103)	(135)
Finance costs	-	-	6
	__________	__________	__________
Net cash (outflow)/inflow from operating activities before interest and corporation tax	(1,424)	2,127	2,988
Corporation tax paid	(12)	(33)	(46)
	__________	__________	__________
Net cash (outflow)/inflow from operating activities	(1,436)	2,094	2,942
Financing activities
Purchase of own shares	-	(2,203)	(2,203)
Exercise of Warrants	645	-	23
Finance costs	-	-	(6)
	__________	__________	__________
Net cash inflow/(outflow) from financing activities	645	(2,203)	(2,186)
	__________	__________	__________
Net (decrease)/increase in cash and cash equivalents	(791)	(109)	756
Effect of foreign exchange rate changes	(144)	(49)	(61)
	__________	__________	__________
Change in cash and cash equivalents	(935)	(158)	695
Cash and cash equivalents at the start of the period	1,467	772	772
	__________	__________	__________
Cash and cash equivalents at the end of the period	532	614	1,467
	__________	__________	__________

  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 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.

2.

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 2009 financial statements, which received an unqualified audit report.

		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
3.	Income	£'000	£'000	£'000
	Income from investments
	Overseas dividends	876	985	1,322
	UK Bond interest	-	2	2
	Other operating income
	Deposit interest	4	14	23
		__________	__________	__________
	Total income	880	1,001	1,347
		__________	__________	__________

		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
4.	Tax on ordinary activities	£'000	£'000	£'000
	(a) Current tax:
	Overseas taxation	18	23	8
		__________	__________	__________
	(b) Factors affecting the tax charge for the year or perio
	The tax charged for the period can be reconciled to the profit per the Group Income Statement as follows:
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		£'000	£'000	£'000
	Profit/(loss) before tax	40,058	(11,528)	(19,127)
	Corporation tax on profit at the standard rate of 28% (September 2008 & March 2009 - 28%)	11,216	(3,228)	(5,356)
	Effects of:
	(Gains)/losses on investments held at fair value through profit or loss not taxable	(11,210)	3,308	5,365
	Currency losses not taxable	40	14	17
	Effect on subsidiary of different tax rate levied in another jurisdiction	(28)	(71)	(18)
		__________	__________	__________
	Current tax charge	18	23	8
		__________	__________	__________
	The Company is exempt from corporation tax on capital gains provided it obtains agreement from HM Revenue & Customs that the tests within Section 842 (s842) of the Income & Corporation Taxes Act 1988 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 are based on the net profit after taxation of £40,040,000 (30 September 2008 - net loss of £11,551,000; 31 March 2009 - net loss of £19,135,000), and on 46,475,033 (30 September 2008 - 46,968,973; 31 March 2009 - 46,640,119) 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, "Earning 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. The calculations indicate that the exercise of Warrants would result in an increase in the weighted average number of Ordinary shares of 4,074,537 (30 September 2008 - 3,542,192; 31 March 2009 - 2,417,518) to a total of 50,549,570 (30 September 2008 - 50,511,165; 31 March 2009 - 49,057,637) Ordinary shares.
	The basic and diluted earnings per Ordinary share detailed above can be further analysed between revenue and capital as follows:

	Basic
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		p	p	p
	Revenue return per share	0.32	0.66	0.18
	Capital return per share	85.83	(25.26)	(41.21)
		__________	__________	__________
	Total return	86.15	(24.60)	(41.03)
		__________	__________	__________
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		£'000	£'000	£'000
	Revenue return total	148	312	85
	Capital return total	39,892	(11,863)	(19,220)
		__________	__________	__________
	Total return	40,040	(11,551)	(19,135)
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	46,475,033	46,968,973	46,640,119
		__________	__________	__________
	Diluted
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		p	p	p
	Revenue return per share	0.29	0.62	0.17
	Capital return per share	78.92	(23.49)	(39.18)
		__________	__________	__________
	Total return	79.21	(22.87)	(39.01)
		__________	__________	__________
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		£'000	£'000	£'000
	Revenue return total	148	312	85
	Capital return total	39,892	(11,863)	(19,220)
		__________	__________	__________
	Total return	40,040	(11,551)	(19,135)
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	50,549,570	50,511,165	49,057,637
		__________	__________	__________

6.	Dividends on equity shares
	No interim dividend has been declared in respect of either the six months ended 30 September 2009 or 30 September 2008. During the year ended 31 March 2009, the subsidiary company paid dividends of £135,000 to the parent company, and the net amount due to the parent company at the year end was £nil.

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/(losses) on investments in the Group Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		30 September 2009	30 September 2008	31 March 2009
		£'000	£'000	£'000
	Purchases	22	17	40
	Sales	19	30	51
		__________	__________	__________
		41	47	91
		__________	__________	__________

8.	Capital reserve
	The capital reserve reflected in the Group Balance Sheet at 30 September 2009 includes gains of £49,320,000 (30 September 2008 - gains of £12,726,000; 31 March 2009 - gains of £11,700,000) which relate to the revaluation of investments held at the reporting date.

9.	Net asset value per Ordinary share
	The basic net asset value per Ordinary share is based on a net asset value of £104,338,000 (30 September 2008 - £71,237,000; 31 March 2009 - £63,653,000) and on 46,954,143 (30 September 2008 and 31 March 2009 - 46,309,458) 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 (30 September 2008 and 31 March 2009 - 12,760,682), were exercised on the first day of the financial period at 100p per share, giving a total of 59,070,140 Ordinary shares (30 September 2008 and 31 March 2009 - 59,070,140).

10.	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 2009 and 30 September 2008 have not been audited.
	The information for the year ended 31 March 2009 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) or (3) of the Companies Act 1985.
	This report has not been reviewed or audited by the Company's auditors.

11.	This Interim Report was approved by the Board on 25 November 2009.

12.    The half-yearly financial report is available on the Company's website, www.newindia-trust.co.uk.  It will be posted to shareholders in December 2009, and copies will be available from the Secretaries.

Aberdeen Asset Management PLC

Secretaries

26 November 2009

 

END

 

 

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