Annual Financial Report
NEW INDIA INVESTMENT TRUST PLC
ANNUAL FINANCIAL REPORT
For the year ended 31 March 2012
1. Chairman's Statement
Highlights
• Share Price Total Return -8.8%
• Net Asset Value Total Return -9.3%
• Benchmark Total Return -20.2%
During the year ended 31 March 2012, your Company's net asset value total return, per Ordinary share, fell by 9.3% to 244.0p. The Ordinary share price fell 8.8%, in total return terms, to end the year at 222.0p, reflecting a marginal narrowing of the discount to net asset value from 9.4% to 9.0%. The performance of your Company, backed by its underlying assets, was more resilient than that of the benchmark MSCI India Index, which declined by 20.2%.
The outperformance once again validates your Manager's stock-picking approach to investment, which is a focus on quality and value, or holding businesses that are attractively priced with solid balance sheets, experienced management and good growth prospects. The market gyrations in the past year saw this conviction put to the test. The sharp fall in share prices came on the back of persistent worries over high inflation, the nation's fiscal health and policy mistakes, which unnerved foreign investors already distressed by Europe's debt crisis. The rebound in early 2012, amid hopes of easing price pressures and looser monetary policy, appeared to be a short-term reaction to the weak performance in 2011.
The concerns highlighted above are not new to India. The country has for some time put up with high inflation, a corollary of fast growth as well as the result of supply-side bottlenecks. The central bank raised rates aggressively and only halted policy tightening later in the review period when GDP growth appeared to slow and wholesale prices eased. However, high oil prices could tip the balance. Energy, the single largest item on the import bill, has lifted the trade deficit to a record high and further strained the fiscal shortfall. The government's aim to pare the budget deficit to 5.1% of GDP appears overly optimistic given that it habitually underestimates the impact of heavy food and fuel subsidies.
Arguably, what disappointed investors during the year was inept policymaking. Nowhere was this more evident than in retail, where the government backtracked on its liberalisation plans, only to agree to a partial opening up of the sector subsequently. Coalition politics makes for arduous decision-making. The ruling Congress party's poor showing at recent state elections has made this task much harder. More recently, the government proposed to tax certain cross-border business transactions retroactively, after losing its appeal to the Supreme Court to reverse its decision in sparing UK-based Vodafone's acquisition of Hutchison Essar (we hold neither). Separately, it is also looking to remove tax exemptions on the capital gains of foreign investors using Mauritius to access the domestic equity market. Both proposals, which aim to extend the powers of the tax authorities, highlight some of the risks of doing business in India. We are monitoring these developments.
Meanwhile, the telecoms sector has yet to fully recover from the recent corruption scandal involving 2G licences, which forced the resignation of several public officials. On an optimistic note, the Supreme Court's ruling to scrap all such licences which were issued in 2008 at below-market rates, did not affect the Company's sole telco holding Bharti Airtel, which could benefit from the re-auction of free spectrum.
In spite of the nation's creaky infrastructure, bureaucratic hurdles and messy politics, India's corporate sector continues to thrive. Many businesses are relatively insulated from these challenges and indeed have emerged stronger because of them. Your Company's outperformance attests to this. Its holdings, whether in local companies such as Godrej Consumer Products and Hero MotoCorp, or in subsidiaries of multinationals, such as Bosch India and Hindustan Unilever, underpinned performance during the year, backed by cash-generative businesses, extensive distribution networks and strong brands that provide value to customers. A detailed analysis follows in the Manager's Report.
Continuation of Company and Manager
Your Board has carefully considered the reappointment of your Manager. The Manager's recent performance and long-term track record as well as their expertise and well-understood investment style make a good case for their continued appointment.
Accordingly, your Board recommends that Shareholders vote in favour of resolution No. 8 at the Annual General Meeting, to allow the Company to continue as an investment trust.
Annual General Meeting
The Annual General Meeting ("AGM") will be held at Bow Bells House, 1 Bread Street, London EC4M 9HH on Thursday, 20 September 2012 at 11.30 a.m.
Audley Twiston-Davies retires by rotation at the AGM and has indicated that he will not be standing for re-election as a Director. Audley has served as a Director since 2004 and his wise counsel, experience and contributions are appreciated by myself and my colleagues on the Board.
Professor Victor Bulmer-Thomas will retire as a Director and seek re-election at the AGM. Your Board, having reviewed the reasons for the re-election of Professor Bulmer-Thomas, strongly recommends Shareholders to vote in favour of his reappointment.
In addition to the ordinary business of the meeting, Shareholders will be asked to authorise the Board; to buy back up to 14.99% of the Company's issued share capital; issue new shares representing up to 5% of the present issued share capital; issue new shares representing up to 5% of the present issued share capital otherwise than by a pro rata issue to existing Shareholders (i.e., pre-emption); and approve the continuation of the Company as an investment trust. In respect of the issue of shares from treasury, the Board's policy is kept under review but remains broadly unchanged from last year. The Board would only expect to sell shares from treasury at a maximum discount of 3% to the prevailing NAV at the time of issue. Your Board recommends that Shareholders vote in favour of these resolutions, and intends to do so in respect of its own shareholdings.
As in previous years, the Company is not paying a dividend for the year ended 31 March 2012.
There will be a presentation by the Manager at the AGM as well as an opportunity to meet the Directors over coffee following the meeting.
Outlook
At the time of writing, the central bank has lowered interest rates for the first time in three years in an attempt to boost growth. Given ongoing geopolitical tensions in the Middle East and elevated oil prices, however, the scope for further cuts appears limited despite the slowing economy. As well, the government has delayed the implementation of the capital gains tax in an attempt to restore investor confidence, although markets have yet to recover. Whether it eventually becomes law is anyone's guess. These uncertainties notwithstanding, we remain sanguine about India's prospects, which are buttressed by a swelling middle class, rising discretionary spending and greater access to credit. A GDP expansion of 6.9% expected for the financial year to March 2012 might be the weakest since the 2008 financial crisis, but is still enviable relative to growth rates elsewhere in the emerging universe.
The main challenge is for the government to demonstrate resolve in tackling graft and expediting reform while getting a grip of its finances. Change, whether reducing the subsidy bill or further liberalising the retail sector, will not be easy given the fractious political climate. Encouragingly the electorate has grown more discerning, rewarding leaders for their administrative and economic abilities.
In the near term, external problems, notably Europe's debt crisis, might hurt returns given the domestic market's sensitivity to foreign capital, but India's long-term attractions remain intact.
William Salomon
Chairman
31 May 2012
2. Manager's Report
Portfolio Overview
The Company's net asset value fell by 9.3% in sterling terms during the year ended 31 March 2012 which compared to a decline of 20.2% in the benchmark MSCI India Index (in sterling terms).
Among our holdings, Godrej Consumer Products and Hero MotoCorp were noteworthy contributors to performance. Hero was buttressed by new launches and rapid expansion following the amicable separation from Honda Motor of Japan. It is the largest motor-cycle producer and distributor, with a 45% share of the domestic two-wheeler market. As for Godrej, overseas expansion enabled it to diversify its revenue stream. It now derives 40% of its sales from external markets, while its domestic core soap business has also done well.
Conversely, our lack of exposure to Tata Motors and underweight to HDFC Bank were the key detractors. Part of the well-respected Tata group, Tata Motors designs, manufactures and sells a wide range of vehicles, from commercial vehicles to passenger cars. However, we are not comfortable with its expansion plans and the financial risks that it undertakes. Despite having a fair position in the local market, it has a tendency to make highly-geared investments, such as the acquisition of Jaguar Land Rover. HDFC Bank is a leading and well-managed financial group. A defensive stock, its share price was resilient last year amid weak market conditions. However, it has lagged the rebound in 2012. We are underweight because we also hold the parent company, Housing Development Finance Corporation, which outperformed relative to the benchmark.
At the sector level, our non-exposure to energy added to relative return because the sector lagged the benchmark. Notably, not holding Reliance Industries proved beneficial as its share price floundered. The petrochemical company recently posted a second consecutive drop in quarterly profits, reflecting continued weakness in its core business. Its upstream operations also disappointed as gas production volumes were below expectations. Meanwhile the portfolio's overweight to consumer staples served us well. Our four holdings in the fast moving consumer goods segment were solid performers during the period.
Over the year, Indian equities were buffeted by rising inflation, high interest rates, corruption scandals in the corporate sector and the government's failure to make key policy decisions. The final months of the review period, however, saw the market improve. Being one of the most oversold in Asia, it rebounded as investor sentiment improved.
Economic News
Economic growth has been slowing. Nonetheless, recent indicators suggest that manufacturing may have recovered after industrial production accelerated in January. The government maintained its full-year GDP growth forecast at 7.6% in its latest Budget, which also aimed to pare the fiscal deficit partly by increasing taxes. It was largely silent on structural reforms.
Inflation, as measured by the wholesale price index (WPI), remained close to 10% for much of last year. The Reserve Bank of India (RBI) raised interest rates aggressively in the first half of the review period and succeeded in bringing the WPI down to 6.55% in January. This allowed the RBI to cut interest rates after the review period, the first time in three years, in efforts to boost growth.
In politics, the ruling Congress party suffered defeats in several state elections. This was most evident in Uttar Pradesh, the country's most populous state, where the opposition Samajwadi Party swept to victory. On the policy front, the government's efforts to initiate reforms were challenged. Its plan to liberalise the retail sector was derailed by public outcry and a rebellion within its own ranks as well as from coalition parties. Other reforms such as introducing a nationwide goods and services tax were also stalled.
Similarly, in an attempt to stem corruption among senior government officials, the Supreme Court cancelled all telecom licences allotted in 2008. In another landmark case, it overturned a Mumbai high court judgement requiring Vodafone to pay US$2.9 billion in capital gains tax for its acquisition of Hutchison Essar. Businesses were encouraged by the ruling, which was in line with global tax practices and augured well for foreign direct investments. The March 2012 Budget included proposals to tighten tax laws which muted initial optimism. Specifically, the government proposed to tax certain overseas transfers of Indian assets retroactively. Separately it also suggested removing tax exemptions on the capital gains of international companies holding Indian equity assets through Mauritius.
Sector Views
Information Technology
Despite wage inflation, India maintains its competitive advantage in software and IT services given its well-educated, English-speaking and thriving scientific community. Although salaries have risen, they remain relatively competitive. Sentiment is still cautious even as key markets in North America and Europe appear to be recovering and more customers are committing to contracts again. This has driven wages up and accelerated the recruitment of software engineers. In this light, our holdings have delivered healthy earnings growth.
We continue to be major investors in leading software outsourcing companies Infosys Technologies and Tata Consultancy Services. Both have software engineering teams located globally and generate healthy cash flows. For the December quarter, Infosys Technologies posted good revenue growth from volume expansion and improved pricing from its clients in the US and Europe. Tata Consultancy Services' revenue also grew amid improvements across its markets. It also partnered Mitsubishi Corporation to provide information technology services to Japanese customers.
Energy
There is no visible progress in reforming the sector. The ongoing challenge to provide the public with reliable, reasonably-priced energy supply remains incomplete, unpredictable and politicised. The government appears uncommitted to providing a comprehensive and transparent regulatory framework. It continued to raise prices for selected energy products and provide relief to oil marketing companies that have had to absorb the increase in energy costs.
Hence, we have chosen to avoid this sector. We reiterate our reservations about index heavyweight Reliance Industries because its aggressive expansion into untested oil and gas exploration, as well as its forays into retail and industrial park activities which appear overly ambitious. These are areas that require extensive capital outlay and where the company has neither a proven track record nor a clear competitive advantage.
Financials
We have a large exposure to this sector as we see banks playing a central role in providing finance for consumer spending. Our core holdings are ICICI Bank, a leading lender whose strength is in the urban retail segment, and HDFC, the largest and most competent domestic mortgage company. Overall, HDFC, being the more conservative of the two, has weathered the stresses in the financial sector, such as high interest rates and slower loan growth, better. As such, we maintain a larger weight in it. HDFC's sound capital position has enabled it to manage growth across its many businesses. Both HDFC and its associate, HDFC Bank, maintained healthy net interest margins while growing their loan portfolios, as reflected in their December 2011 results. Meanwhile, ICICI Bank has been strengthening its balance sheet, consolidating its capital and slowing the expansion of its loan book. The new CEO, Chanda Kochhar, is committed to bolstering its deposit base before pursuing further loan growth. The bank reined in risk by trimming its overseas exposure. Although there were more instances of non-performing loans among the state-owned banks, our holdings (which are private banks) fared better in maintaining their asset quality.
We noted with interest some opportunistic placements of selected financial stocks in light of the strong rally in 2012. These included Temasek's sale of its stake in ICICI Bank, Carlyle's disposal of HDFC and Warburg Pincus' divestment of Kotak Mahindra Bank.
Consumer Discretionary
The consumer discretionary sector has huge growth potential in view of an expanding middle class, rising disposable incomes and increasing rural spending power. Cars and motorcycles, in particular, will benefit from this boost in discretionary expenditure. We favour the two-wheeler market as it has proven to be more resilient than the car or commercial vehicle markets. Two-wheelers are relatively affordable and often seen as a necessity rather than a luxury.
We invest in Hero MotoCorp, the country's biggest motorcycle manufacturer. Hero has continued to grow, regaining market share from rival Bajaj Auto by capitalising on its superior rural distribution network and introducing more attractive models. Major shareholders Honda Motor of Japan and the Munjal family agreed to an amicable split, with Honda selling its stake in the company to the family. Following Honda's exit, Hero will be able to sell motorbikes in overseas markets from which it was previously barred. It delivered strong earnings growth in the December quarter and pledged to invest US$1 billion over the next five years to build its international business.
In February, Hero sealed a partnership with US-based Erik Buell Racing, which will provide technology for its new hybrid scooter and high-end motorcycles. It also announced its entry into the US professional racing circuit to promote its brand.
Consumer Staples
Each of our holdings in this sector has a core business that adds a unique facet to the portfolio. Of the four, Hindustan Unilever is the locally-listed subsidiary of Unilever, which makes and distributes soaps, detergents and personal care products. ITC, an associate of British American Tobacco, has a thriving business in tobacco and a diversified range of interests that includes packaged food and confectioneries as well as paper, packaging and hotels. We also hold Godrej Consumer Products, a leader in the personal, hair, household and fabric care segments in the domestic, as well as in selected emerging markets. Nestle India is experiencing fast growth given its leading positions in niche food, chocolate and milk products. Its established brands and quality products allow it to maintain healthy margins, unlike its weaker rivals.
These companies have solid brands that generate resilient cash flows and tap into the growing middle class. Their most recent quarterly results attest to their profitability. Hindustan Unilever, ITC and Nestle India managed to pass on higher raw material prices to end-consumers. Godrej Consumer Products' ability to cross-sell its products in emerging markets lifted its profits.
Materials
Grasim Industries, the flagship company of the Birla Group, remains our core holding in this sector. The leading cement group in the country and the world's eighth largest in terms of capacity, Grasim is well-positioned to benefit from firm housing demand and infrastructure spending. In the course of grouping its cement assets under a single entity, Birla distributed shares in Ultratech Cement (through our holding in Grasim). As a result of this restructuring, we now hold shares in both Grasim and Ultratech, which will remain our core investments in the building materials segment.
We complement that position with Ambuja Cements. Owned and controlled by Swiss cement group Holcim, Ambuja has a substantial network of production and distribution facilities. Holcim recently raised its stake in the company to gain greater exposure to India's long-term demand for cement.
We continue to maintain a sizable position in cement companies as we believe they are poised for longer term growth. Although pricing power has yet to be restored, demand has been gathering pace. Our holdings continue to deliver healthy cash flows even at this time of overcapacity.
Healthcare
Despite the increasingly challenging regulatory environment in the US, a major export market, the domestic pharmaceutical sector has considerable competitive advantage, given its relatively low costs and access to a substantial talent pool.
Our holdings include a mix of multinational subsidiaries (GlaxoSmithKline Pharmaceuticals, Aventis Pharma) seeking to sell to the local market as well as domestic companies (Piramal Healthcare), taking advantage of its low-cost manufacturing base to penetrate overseas markets.
Piramal Healthcare sold its non-core diagnostics business and used the proceeds to reward shareholders with a buyback of up to 20% of its shares. It retains a large net cash position, following last year's sale of its domestic formulations business to Abbott Laboratories. It has been investing in its core pharmaceutical business, as well as building up capabilities in real estate and finance. During the year, we exited the position in Sun Pharmaceutical, taking advantage of the run-up in the stock price following the announcement of its annual results.
Industrials
We hold ABB India and Container Corporation. Electrical engineering group ABB is the listed subsidiary of Swiss group Asea Brown Boveri and a beneficiary of the government's infrastructure investments. Owned by Indian Rails, Container Corporation is a near-monopolistic provider of rail freight and logistics services.
ABB acquired Bangalore-based Metsys Engineering & Consultancy to augment its capabilities in the steel industry. On the earnings front, the company faced intense competition and profit erosion even though revenue growth recovered across all segments. This did not deter its parent from offering to buy back its shares at 900 rupees, an 18% premium to the market price. We also sold a portion of our shares. In the recent financial year ended December 2011, ABB tripled its net earnings, which was a third of what it used to generate in the mid-2000s but nonetheless, a positive sign of recovery.
Utilities
Our core holding is Gas Authority of India (GAIL), the country's largest gas distribution company. GAIL has a sound balance sheet and is poised to benefit from the country's industrial development and rising consumption. GAIL obtained government approval to lay 5,000km of new pipeline and plans to invest five billion rupees in its gas business. It will also partner Reliance Industries in overseas petrochemical projects. Additionally, its board approved more than 80 billion rupees for the extension of the national gas pipeline network from Uttar Pradesh to West Bengal.
We also hold power generator and distributor Tata Power and gas distributor Gujarat Gas, in which British Gas has a major stake. To address the gas shortage, Gujarat Gas sealed an agreement with its parent to ensure continued supply of liquefied natural gas. Tata Power managed the inflationary environment by containing costs while GAIL was bolstered by gas transmission earnings.
Telecommunication Services
Key players Bharti Airtel, Reliance Communications, Vodafone and Idea continued to battle for market share.
We hold Bharti Airtel, the leading integrated telecom services provider with a nationwide presence that has benefited from its strategic tie-up with Singapore Telecommunications, now its largest shareholder. We are confident that management's competent leadership and focus on the flourishing rural segment will help it maintain its dominance in the local cellular market. It also intends to grow in other emerging markets through acquisitions and is determined to turn around the African operations of Zain Telecommunications, which it had acquired earlier.
Meanwhile, Bharti is likely to benefit from the invalidation of 2G licences issued in 2008 by the Supreme Court. The ruling is likely to expedite consolidation in the fragmented sector and free spectrum for re-allocation. More recently, the telecoms regulator announced plans to increase the price for operators to secure licences, a development we will monitor closely.
Strategy
India's public burden remains a significant constraint on economic growth. There are also concerns about the country's ability to overcome the political paralysis that has thwarted the government's plans for key reforms. Furthermore, inflationary worries may resurface as food expenses have risen again and geopolitical tensions could pose upside risks to oil prices.
At the time of writing, the government has decided to defer the implementation of the capital gains tax to revive market confidence. This is yet another instance of policymakers' indecisiveness.
While the economy may experience short-term hiccups, the country's long-term growth prospects remain undiminished. The market is dominated by private companies, driven by entrepreneurs who are shareholder focused. Our fundamental bottom-up approach allows us to target well-managed companies with the best long-term opportunities to maximize the returns of the portfolio.
Aberdeen Asset Management Asia Limited
Manager
31 May 2012
3. Business Review
A review of the Company's activities is given in the Corporate Summary, the Chairman's Statement and the Manager's Report. This includes a review of the business of the Company, its principal activities as well as likely future developments of the business.
The Board meets at least four times a year to review performance with the Manager. As well as carrying out the matters set out in the Statement of Corporate Governance, the Board receives, for each meeting, a detailed portfolio report and an analysis of economic indicators. The Board discusses performance and strategy, considering perceived regional risks and economic conditions and using such measures as attribution analysis against the benchmark to assess the Company's success in achieving its objectives. The Key Performance Indicators for the Company, which are established industry measures, include NAV performance, share price performance and benchmark performance. A record of these measures is disclosed in Results.
The Board regularly reviews the major strategic risks that the Board and the Manager have identified, and against these the Board sets out the delegated controls designed to manage those risks. Aside from the risks associated with investment in Indian equities or those of companies that derive significant revenue or profit solely from India, the key risks related to investment strategy are managed through a defined investment policy, specific guidelines and restrictions, and by the process of oversight at each Board meeting, as outlined above. Operational disruption, accounting and legal risks are also covered annually, and regulatory compliance is reviewed at each Board meeting. The major risks associated with the Company are detailed in the Corporate Summary and in note 16 to the Financial Statements.
The Company does not make political donations or expenditures, and has not made any donations for charitable purposes during the year. In common with most investment trusts, the Company has no employees.
4. Corporate Summary
The Company
New India Investment Trust PLC ("New India" or the "Company") is an investment trust whose Ordinary shares are admitted to trade on the Official List in the premium segment and are traded on the main market of the London Stock Exchange. The Company is a member of the Association of Investment Companies.
Investment Manager
Aberdeen Asset Management Asia Limited, 21 Church Street, #01-01 Capital Square Two, Singapore 049480 (the "Manager" or "AAM Asia").
Investment Objective
The investment objective of the Company is to provide shareholders with long-term capital appreciation by investment in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance.
Investment Policy
The Company (either directly or through its Mauritian subsidiary, New India Investment Company (Mauritius) Limited (the "Subsidiary")) primarily invests in Indian equity securities. The Company and the Subsidiary are collectively referred to as the "Group".
The Group's investment policy is flexible, enabling it to invest in all types of securities, including equities, debt and convertible securities in companies listed on the Indian stock exchanges or which are listed on other international exchanges and which derive significant revenue or profit from India, and Indian securities listed on other international stock exchanges. The Group may also, where appropriate, invest in open-ended collective investment schemes and closed-end funds that invest in India and are listed on the Mumbai Stock Exchange and/or the Indian National Stock Exchange. The Group is free to invest in any particular market segment or geographical region of India. The Group may also invest in small, mid- or large-capitalisation companies.
The Manager continues to expect the portfolio to comprise in the region of 25 to 30 holdings (but without restricting the Group from holding a more or less concentrated portfolio).
Currency and Hedging Policy
The Company's financial statements are maintained in sterling while, because of its investment focus, many of the Group's investments are denominated and quoted in currencies other than sterling, in particular, the Indian rupee. Although it is not the Group's present intention to do so, the Group may, where appropriate and economic to do so, employ a policy of hedging against fluctuations in the rate of exchange between sterling and other currencies in which its investments are denominated. Cash balances are held in such currency or currencies as the Manager considers to be appropriate, although it is expected that this would generally be the Indian rupee.
Borrowing Policy and Gearing
The Group is permitted to borrow up to 25 per cent of its net assets (measured when new borrowings are incurred). It is intended that this power should be used to leverage the Group's portfolio in order to enhance returns where and to the extent that it is considered appropriate to do so.
Gearing will be used in relation to specific opportunities or circumstances. The Directors will take care to ensure that borrowing covenants will permit flexibility of investment policy.
Investment Restrictions
It is the investment policy of the Group to invest no more than 15 per cent of its gross assets in other listed investment companies (including listed investment trusts). The Group does not have any investments in other listed investment companies at 31 March 2012.
Benchmark
The Company compares its performance to the MSCI India Index (sterling adjusted). However, the Company's portfolio is constructed without reference to the composition of any stockmarket index or benchmark. It is likely, therefore, that there will be periods when its performance may vary significantly from the benchmark.
Capital Structure
As at 31 March 2012 and the date of approval of this Report, the Company had a capital structure comprising 59,070,140 Ordinary shares of 25p with voting rights.
Net Asset Value
At 31 March 2012, the Company had total shareholders' funds of £144.1m and a net asset value of 243.96 pence per Ordinary share.
Websites
www.newindia-trust.co.uk
www.aberdeen-asset.com
Company Secretary
Aberdeen Asset Management PLC, Bow Bells House, 1 Bread Street, London EC4M 9HH
Email: company.secretary@invtrusts.co.uk
Customer Services
Freephone: 0500 00 00 40
(Open from Monday - Friday, 9am - 5pm)
Email: inv.trusts@aberdeen-asset.com
Principal Risks and Uncertainties
The Board seeks to set out below its view of the principal key risks affecting its business; further information on financial risks may be found in note 16 to the financial statements. 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 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 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 European Commission's Directive on Alternative Investment Fund Managers and the changes to the investment trust rules in effect from 1 April 2012; and
• insolvency of a custodian or sub-custodian combined with a shortfall in the assets held by that custodian or sub-custodian arising from fraud, operational errors or settlement difficulties resulting in a loss of assets owned by 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 the Board cannot avoid either in the Company's search for returns.
Duration
The Company does not have a fixed life. However, the Articles of Association of the Company provide for an annual continuation vote.
Management Agreement
The Company has an agreement with AAM Asia for the provision of investment management services, details of which are shown in note 4.
5. Results
Financial Highlights
|
|
31 March 2012 |
31 March 2011 |
% change |
|
Total equity shareholders' funds (net assets) |
£144,105,000 |
£158,842,000 |
-9.3 |
|
Share price (mid market) |
222.00p |
243.50p |
-8.8 |
|
Net asset value per share |
243.96p |
268.90p |
-9.3 |
|
Discount to net asset value |
9.0% |
9.4% |
|
|
|
|
|
|
|
Total (loss)/return per share |
(24.95p) |
31.71p |
|
|
Revenue return per share |
0.61p |
0.15p |
|
|
Revenue reserves per share |
2.18p |
1.56p |
|
|
Prospective gross portfolio yield {A} |
1.7% |
1.4% |
|
|
MSCI India portfolio yield {A} |
1.3% |
1.0% |
|
|
Prospective portfolio P/E ratio {B} |
20x |
22x |
|
|
|
|
|
|
|
Operating costs |
|
|
|
|
Total expense ratio - excluding performance fee |
1.53% |
1.53% |
|
|
Total expense ratio - including performance fee |
1.53% |
2.36% |
|
|
{A} Source - AAM Asia (estimated information)/Factset. |
|||
|
{B} Consensus broker views. |
|||
Performance (total return)
|
|
1 year |
3 year |
5 year |
|
|
% return |
% return |
% return |
|
Share price |
-8.8 |
+97.8 |
+72.4 |
|
Net asset value per Ordinary share |
-9.3 |
+88.6 |
+72.4 |
|
MSCI India Index (sterling adjusted) |
-20.2 |
+68.5 |
+43.9 |
6. Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the Group financial statements in accordance with applicable United Kingdom law and those International Financial Reporting Standards (''IFRSs'') as adopted by the European Union.
Under Company Law the Directors must not approve the Group financial statements unless they are satisfied that they present fairly the financial position, financial performance and cash flows of the Group for that period. In preparing the Group financial statements the directors are required to:
• select suitable accounting policies in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", and then apply them consistently;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
• provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group's financial position and financial performance;
• state that the Group has complied with IFRS, subject to any material departures disclosed and explained in the financial statements; and
• make judgments and estimates that are reasonable and prudent.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The maintenance and integrity of the website maintained for the Group is the responsibility of the Directors; the work carried out by the Auditor does not involve consideration of these matters and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Responsibility statements under the Disclosure and Transparency Rules
Each of the Directors confirms that, to the best of their knowledge:
• the financial statements, prepared in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Company and undertakings included in the consolidation taken as a whole; and
• the Directors' Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole together with a description of the principal risks and uncertainties that they face.
On behalf of the Board
William Salomon
Chairman
31 May 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 March 2012 |
31 March 2011 |
||||
|
|
|
Revenue |
Capital |
|
Revenue |
Capital |
|
|
|
|
return |
return |
Total |
return |
return |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Investment income |
3 |
|
|
|
|
|
|
|
Dividend income |
|
2,644 |
53 |
2,697 |
2,333 |
- |
2,333 |
|
Interest income |
|
5 |
- |
5 |
5 |
- |
5 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
Total revenue |
|
2,649 |
53 |
2,702 |
2,338 |
- |
2,338 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
(Losses)/gains on investments held at fair value through profit or loss |
9(a) |
- |
(15,116) |
(15,116) |
- |
18,679 |
18,679 |
|
Currency losses |
14 |
- |
(36) |
(36) |
- |
(131) |
(131) |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
|
|
2,649 |
(15,099) |
(12,450) |
2,338 |
18,548 |
20,886 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
Expenses |
|
|
|
|
|
|
|
|
Investment management fees |
4 |
(1,456) |
- |
(1,456) |
(1,487) |
- |
(1,487) |
|
Performance fees |
4 |
- |
- |
- |
- |
(1,225) |
(1,225) |
|
Other administrative expenses |
5 |
(775) |
- |
(775) |
(775) |
- |
(775) |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
Profit/(loss) before tax |
|
418 |
(15,099) |
(14,681) |
76 |
17,323 |
17,399 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
Taxation |
6 |
(58) |
- |
(58) |
7 |
- |
7 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
Profit/(loss) for the year |
|
360 |
(15,099) |
(14,739) |
83 |
17,323 |
17,406 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
Return/(loss) per Ordinary share (pence) |
8 |
0.61 |
(25.56) |
(24.95) |
0.15 |
31.56 |
31.71 |
|
|
|
________ |
_________ |
________ |
________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
The Group does not have any income or expense that is not included in profit/(loss) for the year, and therefore the "Profit/(loss) for the year" is also the "Total comprehensive income for the year", as defined in IAS 1 (revised). |
|||||||
|
All of the profit/(loss) and total comprehensive income is attributable to the equity holders of the parent company. There are no minority interests. |
|||||||
|
The total column of this statement represents the Statement of Comprehensive Income of the Group, prepared in accordance with IFRS. The revenue and capital 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. |
|||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||
CONSOLIDATED AND COMPANY BALANCE SHEETS
|
|
|
Group |
Company |
Group |
Company |
|
|
|
As at |
As at |
As at |
As at |
|
|
|
31 March |
31 March |
31 March |
31 March |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
|
|
Investments held at fair value through profit or loss |
9 |
142,664 |
143,733 |
157,540 |
158,307 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Current assets |
|
|
|
|
|
|
Cash at bank |
10 |
1,575 |
415 |
2,923 |
652 |
|
Other receivables |
11 |
329 |
55 |
600 |
48 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Total current assets |
|
1,904 |
470 |
3,523 |
700 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Total assets |
|
144,568 |
144,203 |
161,063 |
159,007 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Other payables |
12 |
(463) |
(98) |
(2,221) |
(165) |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Total current liabilities |
|
(463) |
(98) |
(2,221) |
(165) |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Net assets |
|
144,105 |
144,105 |
158,842 |
158,842 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Share capital and reserves |
|
|
|
|
|
|
Ordinary share capital |
13 |
14,768 |
14,768 |
14,768 |
14,768 |
|
Share premium account |
|
25,406 |
25,406 |
25,406 |
25,406 |
|
Special reserve |
|
15,778 |
15,778 |
15,778 |
15,778 |
|
Capital redemption reserve |
|
4,484 |
4,484 |
4,484 |
4,484 |
|
Capital reserve |
14 |
82,384 |
82,988 |
97,483 |
97,789 |
|
Revenue reserve |
|
1,285 |
681 |
923 |
617 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Equity shareholders' funds |
|
144,105 |
144,105 |
158,842 |
158,842 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
|
Net asset value per Ordinary share (pence) |
15 |
243.96 |
243.96 |
268.90 |
268.90 |
|
|
|
__________ |
__________ |
__________ |
__________ |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
Year ended 31 March 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
Capital |
|
|
|
|
|
|
|
Share |
premium |
Special |
redemption |
Capital |
Revenue |
|
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 March 2011 |
|
|
14,768 |
25,406 |
15,778 |
4,484 |
97,483 |
923 |
158,842 |
|
Net (loss)/profit on ordinary activities after taxation |
|
|
- |
- |
- |
- |
(15,099) |
360 |
(14,739) |
|
Return of unclaimed dividends |
|
|
- |
- |
- |
- |
- |
2 |
2 |
|
|
|
|
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
Balance at 31 March 2012 |
|
|
14,768 |
25,406 |
15,778 |
4,484 |
82,384 |
1,285 |
144,105 |
|
|
|
|
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 March 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
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 profit on ordinary activities after taxation |
- |
- |
- |
- |
- |
- |
17,323 |
83 |
17,406 |
|
Issue of share capital upon exercise of Warrants |
3,029 |
9,087 |
- |
(3,801) |
3,801 |
- |
- |
- |
12,116 |
|
Transfer following final exercise of Warrants |
- |
4,029 |
- |
- |
(4,029) |
- |
- |
- |
- |
|
|
______ |
________ |
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
Balance at 31 March 2011 |
14,768 |
25,406 |
15,778 |
- |
- |
4,484 |
97,483 |
923 |
158,842 |
|
|
______ |
________ |
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
COMPANY STATEMENT OF CHANGES IN EQUITY
|
Year ended 31 March 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
Capital |
|
|
|
|
|
|
|
Share |
premium |
Special |
redemption |
Capital |
Revenue |
|
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 March 2011 |
|
|
14,768 |
25,406 |
15,778 |
4,484 |
97,789 |
617 |
158,842 |
|
Net (loss)/profit on ordinary activities after taxation |
|
|
- |
- |
- |
- |
(14,801) |
62 |
(14,739) |
|
Return of unclaimed dividends |
|
|
- |
- |
- |
- |
- |
2 |
2 |
|
|
|
|
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
Balance at 31 March 2012 |
|
|
14,768 |
25,406 |
15,778 |
4,484 |
82,988 |
681 |
144,105 |
|
|
|
|
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 March 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
80,182 |
818 |
129,320 |
|
Net profit/(loss) on ordinary activities after taxation |
- |
- |
- |
- |
- |
- |
17,607 |
(201) |
17,406 |
|
Issue of share capital upon exercise of Warrants |
3,029 |
9,087 |
- |
(3,801) |
3,801 |
- |
- |
- |
12,116 |
|
Transfer following final exercise of Warrants |
- |
4,029 |
- |
- |
(4,029) |
- |
- |
- |
- |
|
|
______ |
________ |
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
|
Balance at 31 March 2011 |
14,768 |
25,406 |
15,778 |
- |
- |
4,484 |
97,789 |
617 |
158,842 |
|
|
______ |
________ |
________ |
________ |
________ |
________ |
________ |
_______ |
_______ |
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
|
|
|
Year ended |
Year ended |
||
|
|
|
31 March 2012 |
31 March 2011 |
||
|
|
|
Group |
Company |
Group |
Company |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
Operating activities |
|
|
|
|
|
|
(Loss)/profit before tax |
|
(14,681) |
(14,739) |
17,399 |
17,406 |
|
Loss/(gain) on investments held at fair value through profit or loss |
|
15,116 |
14,799 |
(18,679) |
(17,730) |
|
Net losses on foreign exchange |
|
36 |
2 |
131 |
34 |
|
Purchases of investments held at fair value through profit or loss |
|
(9,756) |
(378) |
(23,005) |
(12,448) |
|
Sales of investments held at fair value through profit or loss |
|
9,374 |
153 |
13,563 |
1,140 |
|
Increase in other receivables |
|
(13) |
(7) |
(107) |
(8) |
|
(Decrease)/increase in other payables |
|
(1,388) |
(67) |
1,347 |
94 |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Net cash outflow from operating activities before tax |
|
(1,312) |
(237) |
(9,351) |
(11,512) |
|
|
|
|
|
|
|
|
Taxation paid |
|
(2) |
- |
- |
- |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Net cash outflow from operating activities |
|
(1,314) |
(237) |
(9,351) |
(11,512) |
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Exercise of Warrants |
|
- |
- |
12,116 |
12,116 |
|
Return of unclaimed dividends |
|
2 |
2 |
- |
- |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Net (decrease)/increase in cash and cash equivalents |
|
(1,312) |
(235) |
2,765 |
604 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at the start of the year |
|
2,923 |
652 |
289 |
82 |
|
Effect of foreign exchange rate changes |
|
(36) |
(2) |
(131) |
(34) |
|
|
|
__________ |
__________ |
__________ |
__________ |
|
Cash and cash equivalents at the end of the year |
10 |
1,575 |
415 |
2,923 |
652 |
|
|
|
__________ |
__________ |
__________ |
__________ |
Notes to the Financial Statements
For the year ended 31 March 2012
|
1. |
Principal activity |
|
|
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010 ("s1158"). |
|
|
|
|
|
The principal activity of its foreign subsidiary is similar in all relevant respects to that of its United Kingdom parent. |
|
2. |
Accounting policies |
||
|
|
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union, and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB ("IFRIC"). |
||
|
|
|
|
|
|
|
(a) |
Basis of preparation |
|
|
|
|
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 March 2012. There are no differences between the accounting policies applied in the Group and the Company. |
|
|
|
|
|
|
|
|
|
The Company has taken advantage of the exemption provided under Section 408 of the Companies Act 2006 not to publish its individual Statement of Comprehensive Income and related notes. |
|
|
|
|
|
|
|
|
|
The Group and Company financial statements are presented in Sterling, which is the currency in which its shareholders operate and expenses are generally paid. All values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated. |
|
|
|
|
|
|
|
|
|
Where presentational guidance set out in the Statement of Recommended Practice ("SORP"): 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by the Association of Investment Companies ("AIC") in January 2009, is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. |
|
|
|
|
|
|
|
|
|
At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but not yet effective: |
|
|
|
|
|
|
|
|
|
- |
Amendments to IFRS 1 - Severe Hyperinflation and Removal of Fixed Dates for First Time Adopters (effective for annual periods beginning on or after 1 July 2011). |
|
|
|
- |
Amendments to IFRS 7 - Financial Instruments: Transfers of Financial Assets Disclosures (effective for annual periods beginning on or after 1 July 2011). |
|
|
|
- |
IFRS 9 - Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2015). |
|
|
|
- |
IFRS 10 - Consolidated Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
- |
IFRS 11 - Joint Arrangements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
- |
IFRS 12 - Disclosure of Interests in Other Entities (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
- |
IFRS 13 - Fair Value Measurement (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
- |
Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income (effective for annual periods beginning on or after 1 July 2012) |
|
|
|
- |
Amendments to IAS 12 - Income Taxes - Deferred Tax Amendment (effective for annual periods beginning on or after 1 January 2012). |
|
|
|
- |
Amendments to IAS 19 - Employee Benefits (effective for annual periods on or after 1 January 2013). |
|
|
|
- |
IAS 27 - Separate Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
- |
IAS 28 - Investments in Associates and Joint Ventures (early adoption permitted) (effective 1 January 2013). |
|
|
|
|
|
|
|
|
The Directors do not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact the Company's financial results in the period of initial application although there will be revised presentations to the Primary Financial Statements and additional disclosures. The Company intends to adopt the standards in the reporting period when they become effective. |
|
|
|
|
|
|
|
|
(b) |
Group accounts |
|
|
|
|
The Group financial statements consolidate the financial statements of the Company and its subsidiary, New India Investment Company (Mauritius) Limited. |
|
|
|
|
|
|
|
|
|
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities and is achieved through direct or indirect ownership of voting rights, currently exercisable or convertible potential voting rights, or by way of contractual agreement. The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. |
|
|
|
|
|
|
|
|
(c) |
Presentation of Consolidated Statement of Comprehensive Income |
|
|
|
|
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Consolidated Statement of Comprehensive Income between items of revenue and capital nature has been presented in the Consolidated Statement of Comprehensive Income. In accordance with the Company's status as a UK investment company under Section 833 of the Companies Act 2006, net capital returns may not be distributed by way of dividend. |
|
|
|
|
|
|
|
|
(d) |
Segmental reporting |
|
|
|
|
The Directors are of the opinion that the Group is engaged in a single segment of business, being investment business. The Board has considered the requirements of IFRS 8 'Operating Segments' and is of the view that the Group is engaged in a single segment business, of investing in Indian quoted equities and that therefore the Group has only a single operating segment. The Board of Directors, as a whole, has been identified as constituting the chief operating decision maker of the Group. The key measure of performance used by the Board to assess the Group's performance is the total return on the Group's net asset value, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements. |
|
|
|
|
|
|
|
|
(e) |
Income |
|
|
|
|
Dividends receivable on equity shares are recognised in the Consolidated Statement of Comprehensive Income on the ex-dividend date. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Group's right to receive payment is established. Where a Group company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in the Consolidated Statement of Comprehensive Income. Provision is made for any dividends not expected to be received. Interest receivable from cash and short-term deposits is accrued to the end of the financial year. |
|
|
|
|
|
|
|
|
(f) |
Expenses and interest payable |
|
|
|
|
All expenses, with the exception of interest expenses, which would be recognised using the effective interest method, are accounted for on an accruals basis. Expenses are charged to the revenue column of the Consolidated Statement of Comprehensive Income except as follows: |
|
|
|
|
- |
expenses which are incidental to the acquisition or disposal of an investment are charged to the capital column of the Consolidated Statement of Comprehensive Income and separately identified and disclosed in note 9 (c); and |
|
|
|
- |
expenses are charged to the capital column of the Consolidated Statement of Comprehensive Income where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. |
|
|
|
|
|
|
|
(g) |
Taxation |
|
|
|
|
The tax expense represents the sum of the tax currently payable and deferred tax. Tax payable is based on the taxable profit for the year. Taxable profit differs from profit before tax as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the Balance Sheet date. |
|
|
|
|
|
|
|
|
|
Deferred tax |
|
|
|
|
Deferred tax is recognised in respect of all temporary differences at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Balance Sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise. |
|
|
|
|
|
|
|
|
(h) |
Investments |
|
|
|
|
All investments have been designated upon initial recognition at fair value through profit or loss. This is done because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Group's documented investment strategy, and information about the grouping is provided internally on that basis. Purchases of investments are recognised on a trade date basis and designated upon initial recognition as held at fair value through profit or loss. Sales of assets are also recognised on a trade date basis. Proceeds are measured at fair value, which is regarded as the proceeds of sale less any transaction costs. |
|
|
|
|
|
|
|
|
|
The fair value of the financial instruments is based on their quoted bid price at the Balance Sheet date, without deduction for any estimated future selling costs. Any unquoted investments would be held at fair value, as measured by the Directors using appropriate valuation methodologies such as earnings multiples, recent transactions and net assets. In the case of the Company's investment in the subsidiary, of which the Company owns 100% of its Ordinary share capital, this has been measured at fair value, which is deemed to be its net asset value. |
|
|
|
|
|
|
|
|
|
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Consolidated Statement of Comprehensive Income as "(Losses)/gains on investments at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase. |
|
|
|
|
|
|
|
|
(i) |
Cash and cash equivalents |
|
|
|
|
Cash comprises cash in hand and at banks and short-term deposits. Cash equivalents are short-term, highly-liquid investments that are readily convertible to known amounts of cash, and that are subject to an insignificant risk of changes in value. |
|
|
|
|
|
|
|
|
(j) |
Other receivables and payables |
|
|
|
|
Other receivables do not carry any interest and are short-term in nature, and are, accordingly, stated at their recoverable amount. Other payables are non-interest bearing and are stated at their payable amount. |
|
|
|
|
|
|
|
|
(k) |
Dividends payable |
|
|
|
|
Final dividends are recognised from the date on which they are declared and approved by shareholders. |
|
|
|
|
|
|
|
|
(l) |
Nature and purpose of reserves |
|
|
|
|
Special reserve |
|
|
|
|
The special reserve arose following Court approval in 1998 to transfer £30m from the share premium account. This reserve is distributable and its function is to fund any share buy-backs by the Company. |
|
|
|
|
|
|
|
|
|
Capital redemption reserve |
|
|
|
|
The capital redemption reserve arose when Ordinary shares were redeemed, and subsequently cancelled by the Company, at which point an amount equal to the par value of the Ordinary share capital was transferred from the Ordinary share capital to the capital redemption reserve. |
|
|
|
|
|
|
|
|
|
Capital reserve |
|
|
|
|
This reserve reflects any gains or losses on investments realised in the period along with any increases and decreases in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. |
|
|
|
|
|
|
|
|
|
Revenue reserve |
|
|
|
|
This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. |
|
|
|
|
|
|
|
|
(m) |
Foreign currency |
|
|
|
|
Overseas monetary assets and liabilities are converted into Sterling at the rate of exchange ruling at the Balance Sheet date. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss and recognised in the Group Statement of Comprehensive Income. |
|
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
3. |
Income |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Income from investments |
|
|
|
|
|
|
|
|
Overseas dividends |
2,644 |
53 |
2,697 |
2,333 |
- |
2,333 |
|
|
|
|
|
|
|
|
|
|
|
Other operating income |
|
|
|
|
|
|
|
|
Deposit interest |
5 |
- |
5 |
5 |
- |
5 |
|
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
|
|
2,649 |
53 |
2,702 |
2,338 |
- |
2,338 |
|
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
|
|
|
During the current year £53,000 (2011 - nil) of dividend income was received following the declaration of a special dividend by one of the Company's investments. The sum was deemed to be capital in nature and has therefore been treated as such in the Statement of Comprehensive Income. |
||||||
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
4. |
Investment management fees |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Investment management fees |
1,456 |
- |
1,456 |
1,487 |
- |
1,487 |
|
|
Performance fee |
- |
- |
- |
- |
1,225 |
1,225 |
|
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
|
|
1,456 |
- |
1,456 |
1,487 |
1,225 |
2,712 |
|
|
|
_________ |
_________ |
_________ |
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
|
|
|
The Company has an agreement with AAM Asia for the provision of management services. |
||||||
|
|
|
||||||
|
|
During the year, the management fee was payable monthly in arrears and was based on an annual amount of 1% of the net asset value of the Group, valued monthly. The agreement is terminable on one year's notice by either party. The balance due to AAM Asia at the year end was £123,000 (2011 - £250,000). All investment management fees are charged 100% to the revenue column of the Consolidated Statement of Comprehensive Income. |
||||||
|
|
|
||||||
|
|
Additionally, the Manager is entitled to a performance-related investment management fee calculated in respect of each financial year to 31 March (the "measurement period") and which is payable in arrears. The fee is 10% of the amount by which the net asset value per share of the Company (adjusted to add back any performance fees paid or accrued during the measurement period, calculated on a consolidated basis for the Group, and diluted by the deemed exercise of all the Warrants), exceeds the Company's net asset value per share on either the first business day of the current measurement period or at the end of the most recent measurement period in respect of which a performance fee has been paid, whichever is higher, multiplied by the number of Ordinary shares in issue at the start of the measurement period. |
||||||
|
|
|
||||||
|
|
When aggregated, the management fee and performance fee, for any financial year, are capped at 1.75% of the gross assets of the Company as at the end of the relevant measurement period. |
||||||
|
|
|
||||||
|
|
For the year ended 31 March 2012, there was no performance fee due to the Manager (2011 - £1,225,000 due, charged 100% to the capital column of the Group Statement of Comprehensive Income). |
||||||
|
|
|
Year ended |
Year ended |
|
|
|
|
31 March 2012 |
31 March 2011 |
|
|
5. |
Other administrative expenses - revenue |
£'000 |
£'000 |
|
|
|
Directors' fees |
93 |
102 |
|
|
|
Marketing contribution |
97 |
83 |
|
|
|
Auditors' remuneration |
|
|
|
|
|
- |
fees payable to the Group's auditors for the audit of the Group's annual accounts |
26 |
26 |
|
|
- |
fees payable to the Group's auditors for the audit of the Company's subsidiary annual accounts |
7 |
7 |
|
|
- |
for other services relating to taxation provided to the Group |
17 |
15 |
|
|
- |
for other services relating to taxation provided to the subsidiary |
- |
6 |
|
|
Legal and advisory fees |
61 |
48 |
|
|
|
Custodian and overseas agents' charges |
314 |
328 |
|
|
|
Other |
160 |
160 |
|
|
|
|
_________ |
_________ |
|
|
|
|
775 |
775 |
|
|
|
|
_________ |
_________ |
|
|
|
The amounts disclosed above for Auditor's remuneration are all shown net of VAT. |
|
|
|
|
|
|
|
|
|
|
|
Directors' fees include £5,000 (2011 - £5,000) paid in respect of the Directors of New India Investment Company (Mauritius) Limited. |
|||
|
|
|
|||
|
|
The Company has an agreement with Aberdeen Asset Management PLC ('AAM PLC') for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement during the year were £97,000 (2011 - £83,000) and no amount was due to AAM PLC at the year end (2011 - £nil). |
|||
|
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
||||
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
6. |
(a) |
Tax on ordinary activities |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Current tax: |
|
|
|
|
|
|
|
|
|
Overseas taxation |
58 |
- |
58 |
(7) |
- |
(7) |
|
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Factors affecting the tax charge for the year |
||||||
|
|
|
The tax charged for the year can be reconciled to the profit per the Consolidated Statement of Comprehensive Income as follows: |
||||||
|
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
||||
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Profit/(loss) before tax |
418 |
(15,099) |
(14,681) |
76 |
17,323 |
17,399 |
|
|
|
|
_______ |
_______ |
_______ |
_______ |
______ |
_______ |
|
|
|
Corporation tax on profit at the standard rate of 26% (2011 - 28%) |
109 |
(3,925) |
(3,816) |
22 |
4,850 |
4,872 |
|
|
|
Effects of: |
|
|
|
|
|
|
|
|
|
Losses/(gains) on investments held at fair value through profit or loss not taxable (see note below) |
- |
3,930 |
3,930 |
- |
(5,230) |
(5,230) |
|
|
|
Currency losses not taxable |
- |
9 |
9 |
- |
37 |
37 |
|
|
|
Movement in excess expenses |
578 |
- |
578 |
631 |
343 |
974 |
|
|
|
Non-taxable dividend income |
(687) |
(14) |
(701) |
(653) |
- |
(653) |
|
|
|
Overseas tax |
58 |
- |
58 |
(7) |
- |
(7) |
|
|
|
|
_______ |
_______ |
_______ |
_______ |
______ |
_______ |
|
|
|
Total tax charge |
58 |
- |
58 |
(7) |
- |
(7) |
|
|
|
|
_______ |
_______ |
_______ |
_______ |
______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has excess expenses of £2,045,000 (2011 - £1,550,000) carried forward. This sum has arisen due to cumulative deductible expenses having exceeded taxable income over the life of the Company. It is considered too uncertain that there will be sufficient taxable profits against which these expenses can be offset and, therefore, in accordance with IAS 12, a deferred tax asset of £491,000 (2011 - £403,000) has not been recognised. Any excess management expenses will be utilised against any taxable income that may arise in the future. |
||||||
|
|
|
|
||||||
|
|
|
The Company is exempt from corporation tax on capital gains provided it obtains agreement from HM Revenue & Customs that the tests within Section 1158 and 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. |
||||||
|
7. |
Dividends on equity shares |
|
|
No final dividend is being proposed for the year ended 31 March 2012 (2011 - £nil). |
|
|
|
|
|
During the year, £2,000 was refunded in respect of unclaimed dividends from previous years (2011 - £nil). |
|
|
|
|
|
During the year, the subsidiary company made a dividend payment of £345,000 (2011 - £150,000) to the parent company, and the net amount due to the parent company at the year end was £nil (2011 - £nil). |
|
8. |
Return/(loss) per Ordinary share |
||||||
|
|
The basic earnings per Ordinary share is based on the net loss after taxation of £14,739,000 (2011 - profit of £17,406,000) and on 59,070,140 (2011 - 54,882,122) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. |
||||||
|
|
|
||||||
|
|
As all Warrants were exercised during the year to 31 March 2011, there is no dilutive impact on the returns per Ordinary share in the current year. |
||||||
|
|
|
||||||
|
|
The earnings per Ordinary share detailed above can be further analysed between revenue return and capital return as follows: |
||||||
|
|
|
||||||
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 March 2012 |
31 March 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Net profit/(loss) (£'000) |
360 |
(15,099) |
(14,739) |
83 |
17,323 |
17,406 |
|
|
Weighted average number of Ordinary shares in issue |
|
|
59,070,140 |
|
|
54,882,122 |
|
|
Return/(loss) per Ordinary share (pence) |
0.61 |
(25.56) |
(24.95) |
0.15 |
31.56 |
31.71 |
|
|
|
Year ended |
Year ended |
|
|||||||||
|
|
|
31 March 2012 |
31 March 2011 |
|
|||||||||
|
9. |
Investments held at fair value through profit or loss |
£'000 |
£'000 |
|
|||||||||
|
|
(a) |
Group |
|
|
|
||||||||
|
|
|
Opening book cost |
75,752 |
57,747 |
|
||||||||
|
|
|
Opening investment holdings fair value gains |
81,788 |
71,363 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
Opening valuation |
157,540 |
129,110 |
|
||||||||
|
|
|
Movements in the year: |
|
|
|
||||||||
|
|
|
Purchases at cost (see section (c) below) |
9,348 |
23,580 |
|
||||||||
|
|
|
Sales - proceeds |
(9,108) |
(13,829) |
|
||||||||
|
|
|
Sales - realised net gains |
5,254 |
8,254 |
|
||||||||
|
|
|
(Decrease)/increase in investment holdings gains |
(20,370) |
10,425 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
Closing valuation |
142,664 |
157,540 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
|
Year ended |
Year ended |
|
||||||||
|
|
|
|
31 March 2012 |
31 March 2011 |
|
||||||||
|
|
|
|
£'000 |
£'000 |
|
||||||||
|
|
|
Closing book cost |
81,246 |
75,752 |
|
||||||||
|
|
|
Closing investment holdings fair value gains |
61,418 |
81,788 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
Closing valuation |
142,664 |
157,540 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
|
Year ended |
Year ended |
|
||||||||
|
|
|
|
31 March 2012 |
31 March 2011 |
|
||||||||
|
|
|
(Losses)/gains on investments |
£'000 |
£'000 |
|
||||||||
|
|
|
Realised gains on sales of investments |
5,254 |
8,254 |
|
||||||||
|
|
|
(Decrease)/increase in investment holdings gains |
(20,370) |
10,425 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
|
(15,116) |
18,679 |
|
||||||||
|
|
|
|
_________ |
_________ |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
|
||||||||
|
|
|
|
Investments |
Investments |
|
||||||||
|
|
|
|
In subsidiary |
Overseas |
Total |
In subsidiary |
Overseas |
Total |
|
||||
|
|
(b) |
Company |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
||||
|
|
|
Opening book cost |
50,150 |
6,407 |
56,557 |
41,150 |
3,689 |
44,839 |
|
||||
|
|
|
Opening investment holdings fair value gains |
97,327 |
4,423 |
101,750 |
80,913 |
3,517 |
84,430 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
Opening valuation |
147,477 |
10,830 |
158,307 |
122,063 |
7,206 |
129,269 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Movements in the year: |
|
|
|
|
|
|
|
||||
|
|
|
Purchases |
- |
378 |
378 |
9,000 |
3,448 |
12,448 |
|
||||
|
|
|
Sales - proceeds |
- |
(153) |
(153) |
- |
(1,140) |
(1,140) |
|
||||
|
|
|
Sales - realised net gains |
- |
85 |
85 |
- |
410 |
410 |
|
||||
|
|
|
(Decrease)/increase in investment holdings fair value gains |
(13,283) |
(1,601) |
(14,884) |
16,414 |
906 |
17,320 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
Closing valuation |
134,194 |
9,539 |
143,733 |
147,477 |
10,830 |
158,307 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Year ended 31 March 2012 |
Year ended 31 March 2011 |
|
||||||||
|
|
|
|
Investments |
Investments |
|
||||||||
|
|
|
|
In subsidiary |
Overseas |
Total |
In subsidiary |
Overseas |
Total |
|
||||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
||||
|
|
|
Closing book cost |
50,150 |
6,717 |
56,867 |
50,150 |
6,407 |
56,557 |
|
||||
|
|
|
Closing investment holdings fair value gains |
84,044 |
2,822 |
86,866 |
97,327 |
4,423 |
101,750 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
Closing valuation |
134,194 |
9,539 |
143,733 |
147,477 |
10,830 |
158,307 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
As at |
As at |
|
||||
|
|
|
|
|
|
|
|
31 March 2012 |
31 March 2011 |
|
||||
|
|
|
(Losses)/gains on investments |
|
|
|
|
£'000 |
£'000 |
|
||||
|
|
|
Realised gains on sales of investments |
|
|
|
|
85 |
410 |
|
||||
|
|
|
(Decrease)/increase in investment holdings fair value gains |
|
|
|
|
(14,884) |
17,320 |
|
||||
|
|
|
|
|
|
|
|
_________ |
_______ |
|
||||
|
|
|
|
|
|
|
|
(14,799) |
17,730 |
|
||||
|
|
|
|
|
|
|
|
_________ |
_______ |
|
||||
|
|
|
|
|
||||||||||
|
|
|
As at 31 March 2012, all of the overseas investments held are in listed stocks. At 31 March 2011 the Company's holding in Ultratech Cement GDR, valued at £223,000, was unlisted, with all other investments being listed. Ultratech Cement GDR obtained a listing during the year to 31 March 2012, and is therefore classed as listed as at 31 March 2012. |
|
||||||||||
|
|
|
|
|||||||||||
|
|
|
The Company owns 100% of the Ordinary share capital of its subsidiary, New India Investment Company (Mauritius) Limited, an investment holding company registered in Mauritius. |
|
||||||||||
|
|
|
|
|||||||||||
|
|
|
The investment in the subsidiary is valued at fair value, which is deemed to be its underlying net asset value. |
|
||||||||||
|
|
|
|
|||||||||||
|
|
|
All investments are categorised at held at fair value through profit or loss, and were designated as such upon initial recognition. |
|
||||||||||
|
|
|
|
|||||||||||
|
|
(c) |
Transaction costs |
|||||||||||
|
|
|
During the year, expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss. These have been expensed through the capital column of the Statement of Comprehensive Income, and are included within (losses)/gains on investments at fair value through profit or loss in the Statement of Comprehensive Income. The total costs were as follows: |
|
||||||||||
|
|
|
|
|||||||||||
|
|
|
|
Year ended |
Year ended |
|||||||||
|
|
|
|
31 March 2012 |
31 March 2011 |
|||||||||
|
|
|
|
Group |
Company |
Group |
Company |
|||||||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|||||||
|
|
|
Purchases |
32 |
- |
85 |
2 |
|||||||
|
|
|
Sales |
33 |
- |
38 |
- |
|||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|||||||
|
|
|
|
65 |
- |
123 |
2 |
|||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|||||||
|
|
|
Group |
Company |
Group |
Company |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
10. |
Cash and cash equivalents |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Cash at bank |
1,575 |
415 |
2,923 |
652 |
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
Group |
Company |
Group |
Company |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
11. |
Other receivables |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Due from brokers |
- |
- |
266 |
- |
|
|
Prepayments and accrued income |
329 |
55 |
316 |
48 |
|
|
Current tax recoverable |
- |
- |
18 |
- |
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
329 |
55 |
600 |
48 |
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
|
|
|
|
|
|
None of the above amounts are past their due date or impaired. |
||||
|
|
|
Group |
Company |
Group |
Company |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
12. |
Other payables |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Amounts due to brokers |
167 |
- |
575 |
- |
|
|
Other payables |
258 |
98 |
1,646 |
165 |
|
|
Current tax |
38 |
- |
- |
- |
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
463 |
98 |
2,221 |
165 |
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
2012 |
2011 |
||
|
13. |
Ordinary share capital |
Number |
£'000 |
Number |
£'000 |
|
|
Authorised |
|
|
|
|
|
|
Ordinary shares of 25p each |
200,000,000 |
50,000 |
200,000,000 |
50,000 |
|
|
|
____________ |
__________ |
__________ |
_________ |
|
|
Issued and fully paid |
|
|
|
|
|
|
Ordinary shares of 25p each : |
|
|
|
|
|
|
Balance brought forward |
59,070,140 |
14,768 |
46,954,143 |
11,739 |
|
|
Warrants exercised during the year |
- |
- |
12,115,997 |
3,029 |
|
|
|
____________ |
__________ |
__________ |
_________ |
|
|
Balance carried forward |
59,070,140 |
14,768 |
59,070,140 |
14,768 |
|
|
|
____________ |
__________ |
__________ |
_________ |
|
|
|
|
|
|
|
|
|
The Ordinary shares give shareholders the entitlement to all of the capital growth in the Group's assets, and to all the income from the Group that is resolved to be distributed. |
||||
|
|
|
||||
|
|
As at 31 March 2012, there were no Warrants in issue (31 March 2011 - nil). |
||||
|
|
|
||||
|
|
During 2011, and following the final exercise date, the remaining 12,115,997 Warrants were exercised at a price of 100p each, creating 12,115,997 new Ordinary shares which were issued for a total consideration of £12,115,977. As a result of this, £3,801,033 was transferred from the Warrant Reserve to the Warrant Exercise Reserve. |
||||
|
|
|
||||
|
|
Ownership of Subsidiary |
||||
|
|
At the year end, the Company's wholly-owned Subsidiary, New India Investment Company (Mauritius) Limited ('the Subsidiary') had share capital of 4,275,000 Redeemable Participating Preference shares of £0.10 each ('Preference shares') and 50 Management shares of £1 each. The Company holds 100% of the share capital of the Subsidiary. |
||||
|
|
|
||||
|
|
In January 2005 the Subsidiary issued a Warrant instrument to the Company, giving the Company the right to purchase up to 38,350,900 Preference shares, at an exercise price per share of £20 per share ('the 2015 Warrant'). The 2015 Warrant is exercisable for 10 years from 14 January 2005. |
||||
|
|
|
||||
|
|
In August 2010, the Subsidiary issued a further Warrant instrument to the Company for a consideration of £9,000,000, giving the Company the right to purchase up to 1,321,417 Preference shares, at an exercise price per share of £40 per share ('the 2020 Warrant'). The 2020 Warrant is exercisable for 10 years from 26 August 2010. |
||||
|
|
|
||||
|
|
Following the above, there are two Warrants issued by the Subsidiary. The Subsidiary has the right to repurchase both Warrants in part or in whole. |
||||
|
|
|
||||
|
|
Partial repurchase of Subsidiary Warrant |
||||
|
|
On 15 May 2008, the Subsidiary repurchased part of the 2015 Warrant, in relation to 405,900 Preference shares, at a valuation based on the subscription price of £20. In aggregate, proceeds of £3,004,000 were received by the Company in the form of a partial capital redemption. These proceeds were credited to the capital reserve of the Company. |
||||
|
|
|
||||
|
|
There are two Warrants in issue carrying the right for the Company to subscribe for 37,945,000 and 1,321,417 new Preference shares of 10p in the Subsidiary at £20 and £40 per share respectively. |
||||
|
|
|
2012 |
2011 |
|
14. |
Capital reserves |
£'000 |
£'000 |
|
|
Group |
|
|
|
|
At 1 April 2011 |
97,483 |
80,160 |
|
|
Currency losses |
(36) |
(131) |
|
|
Movement in investment holdings fair value gains |
(20,370) |
10,425 |
|
|
Gain on sales of investments |
5,254 |
8,254 |
|
|
Capitalised dividend income |
53 |
- |
|
|
Capitalised expenses |
- |
(1,225) |
|
|
|
_________ |
_______ |
|
|
At 31 March 2012 |
82,384 |
97,483 |
|
|
|
_________ |
_______ |
|
|
|
|
|
|
|
The capital reserve includes gains of £61,418,000 (2011 - £81,788,000) which relate to the revaluation of investments held at the reporting date. |
||
|
|
|
|
|
|
|
|
2012 |
2011 |
|
|
Company |
£'000 |
£'000 |
|
|
At 1 April 2011 |
97,789 |
80,182 |
|
|
Currency losses |
(2) |
(34) |
|
|
Movement in investment holdings fair value gains |
(14,884) |
17,320 |
|
|
Gain on sales of investments |
85 |
410 |
|
|
Capitalised expenses |
- |
(89) |
|
|
|
_________ |
_______ |
|
|
At 31 March 2012 |
82,988 |
97,789 |
|
|
|
_________ |
_______ |
|
|
|
|
|
|
|
The capital reserve includes gains of £86,866,000 (2011 - £101,750,000) which relate to the revaluation of investments held at the reporting date. |
||
|
|
|
||
|
|
Overseas monetary assets and liabilities are converted into Sterling at the rate of exchange ruling at the Balance Sheet date. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss and recognised in the Group Statement of Comprehensive Income. |
||
|
15. |
Net asset value per Ordinary share |
|
|
The net asset value per Ordinary share is based on a net asset value of £144,105,000 (2011 - £158,842,000) and on 59,070,140 (2011 - 59,070,140) Ordinary shares, being the number of Ordinary shares in issue at the year end. |
|
16. |
Financial instruments |
||||||||||||
|
|
The Group's financial instruments comprise securities and other investments, cash balances and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement and debtors for accrued income, short-term debtors and creditors. |
||||||||||||
|
|
|
||||||||||||
|
|
The Manager has a dedicated investment management process, which ensures that the investment policy is followed. Stock selection procedures are in place based on the active portfolio management and identification of stocks. The portfolio is reviewed on a periodic basis by a senior investment manager and also by the Manager's Investment Committee. |
||||||||||||
|
|
|
||||||||||||
|
|
The Manager has an independent Investment Risk department for reviewing the investment risk parameters of the Group's portfolio on a regular basis. The department reports to the Manager's Performance & Investment Risk Committee which is chaired by the Manager's Chief Investment Officer. The department's responsibility is to review and monitor predicted portfolio risk and style characteristics using best practice, industry standard multi-factor models. |
||||||||||||
|
|
|
||||||||||||
|
|
Additionally, the Manager's Compliance department continually monitors the Group's investment and borrowing powers and reports its findings to the Manager's Risk Management Committee and to the Board of the Company. |
||||||||||||
|
|
|
||||||||||||
|
|
The main risks arising from the Group's financial instruments are: (i) market risk; (ii) liquidity risk; and (iii) credit risk. |
||||||||||||
|
|
|
||||||||||||
|
|
The Board regularly reviews and agrees policies for managing each of these risks, and these are summarised below. These policies have remained unchanged since the inception of the Group. |
||||||||||||
|
|
|
||||||||||||
|
|
The Board considers that the carrying amount of all disclosed receivables and payables approximates to their fair values. |
||||||||||||
|
|
|
||||||||||||
|
|
(i) |
Market risk |
|||||||||||
|
|
|
The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and other price risk. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Interest rate risk |
|||||||||||
|
|
|
Interest rate movements may affect the level of income receivable on cash deposits. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Financial assets |
|||||||||||
|
|
|
The interest rate risk profile of the Group's financial assets, excluding equity shares which are non-interest bearing and short-term debtors, as at 31 March 2012 and 31 March 2011 was as follows: |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
|
Total |
|
|||||||||
|
|
|
|
(per Balance Sheet) |
Floating rate |
|||||||||
|
|
|
|
2012 |
2011 |
2012 |
2011 |
|||||||
|
|
|
Type |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||
|
|
|
Cash at bank - Sterling |
1,575 |
1,212 |
1,575 |
1,212 |
|||||||
|
|
|
Cash at bank - Indian Rupee |
- |
1,711 |
- |
1,711 |
|||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|||||||
|
|
|
Total |
1,575 |
2,923 |
1,575 |
2,923 |
|||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|||||||
|
|
|
|
|
|
|
|
|||||||
|
|
|
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates, and are classified as having maturity dates of less than one year. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Financial liabilities |
|||||||||||
|
|
|
Excluding short term creditors, the Group had no financial liabilities as at 31 March 2012 and 31 March 2011 which had interest rate risk. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Interest rate sensitivity |
|||||||||||
|
|
|
Movements in interest rates would not significantly affect net assets attributable to the Group's shareholders and total profit. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Foreign currency risk |
|||||||||||
|
|
|
The Group's total return and net assets can be significantly affected by currency translation movements as the majority of the Group's assets and income are denominated in currencies other than Sterling, which is the Group's functional currency. It is not the Group's policy to hedge this risk but it reserves the right to do so, to the extent possible. |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
Foreign currency exposure by currency of denomination: |
|||||||||||
|
|
|
|
|||||||||||
|
|
|
|
31 March 2012 |
31 March 2011 |
|
||||||||
|
|
|
|
|
Net |
Total |
|
Net |
Total |
|
||||
|
|
|
|
Overseas |
monetary |
currency |
Overseas |
monetary |
currency |
|
||||
|
|
|
|
investments |
assets |
exposure |
investments |
assets |
exposure |
|
||||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
||||
|
|
|
US Dollar |
9,539 |
- |
9,539 |
10,830 |
- |
10,830 |
|
||||
|
|
|
Indian Rupee |
133,125 |
- |
133,125 |
146,710 |
1,711 |
148,421 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
|
142,664 |
- |
142,664 |
157,540 |
1,711 |
159,251 |
|
||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
________ |
_______ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
At 31 March 2012, the exchange rate of the Indian Rupee against the reporting currency Sterling was £1: INR 81.397 compared with an exchange rate of £1: INR 71.484 at 31 March 2011. Based on continuing to hold the same investments in the same quantities from 1 April 2011 to 31 March 2012, all other things being equal, the impact of the exchange rate movement over the year would be to decrease the value of the investments by £17,868,000 (2011 - £5,769,000). |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
Foreign currency sensitivity |
|
||||||||||
|
|
|
There is no sensitivity analysis included, as the Group's significant foreign currency financial instruments are in the form of equity investments, which have been included within the other price risk sensitivity analysis so as to show the overall level of exposure. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
Other price risk |
|
||||||||||
|
|
|
Other price risks (ie, changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a sector. Both the allocation of assets and the stock selection process act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Group are all listed on the Bombay (Mumbai) Stock Exchange and/or The Indian National Stock Exchange, with the exception of the Gail (India) GDR, whose primary exchange is London, Grasim Industries GDR, Ultratech Cement GDR and Ambuja Cements GDR, whose primary exchange is Luxembourg and Infosys Technologies ADR, whose primary exchange is the NASDAQ GS. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
Other price risk sensitivity |
|
||||||||||
|
|
|
If market prices at the Balance Sheet date had been 15% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 March 2012 would have increased /(decreased) by £21,400,000 (2011 - increased/(decreased) by £23,631,000) and equity reserves would have increased /(decreased) by the same amount. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
(ii) |
Liquidity risk |
|
||||||||||
|
|
|
This is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. All liabilities are payable on demand for a cash consideration equivalent to the balances shown in note 12, and therefore liquidity risk is not considered to be significant, as the Group's assets mainly comprise readily realisable securities which can be sold to meet funding requirements, if necessary. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
(iii) |
Credit risk |
|
||||||||||
|
|
|
This is failure of the counterparty to a transaction to discharge its obligations under that transaction, which could result in the Group suffering a loss. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
The risk is not considered to be significant, and is managed as follows: |
|
||||||||||
|
|
|
• investment transactions are carried out with a large number of brokers, whose credit standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker; |
|
||||||||||
|
|
|
• the risk of counterparty exposure due to failed trades causing a loss to the Group is mitigated by the review of failed trade reports on a daily basis. In addition, both stock and cash reconciliations to Custodians' records are performed on a daily basis to ensure discrepancies are investigated on a timely basis. The Manager's Compliance department carries out periodic reviews of the Custodian's operations and reports its findings to the Manager's Risk Management Committee and to the Board of the Company. This review will also include checks on the maintenance and security of investments held; and |
|
||||||||||
|
|
|
• cash is held only with reputable banks whose credit ratings are monitored on a regular basis. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
None of the Group's financial assets are secured by collateral or other credit enhancements. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
Credit risk exposure |
|
||||||||||
|
|
|
In summary, compared to the amounts included in the Balance Sheet, the maximum exposure to credit risk at 31 March was as follows: |
|
||||||||||
|
|
|
|
2012 |
2011 |
|
||||||||
|
|
|
|
Balance |
Maximum |
Balance |
Maximum |
|
||||||
|
|
|
|
Sheet |
exposure |
Sheet |
exposure |
|
||||||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
||||||
|
|
|
Non-current assets |
|
|
|
|
|
||||||
|
|
|
Investments designated at fair value through profit or loss |
142,664 |
- |
157,540 |
- |
|
||||||
|
|
|
Current assets |
|
|
|
|
|
||||||
|
|
|
Cash at bank |
1,575 |
1,575 |
2,923 |
2,923 |
|
||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
||||||
|
|
|
|
144,239 |
1,575 |
160,463 |
2,923 |
|
||||||
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
None of the Company's financial assets are past due or impaired. |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
Fair values of financial assets and financial liabilities |
|
||||||||||
|
|
|
Investments held at fair value through profit or loss are valued at their quoted bid prices which equate to their fair values. The Directors are of the opinion that the other financial assets and liabilities are stated at fair value in the Balance Sheet and considered that this is equal to the carrying amount. |
|
||||||||||
|
17. |
Capital management policies and procedures |
||
|
|
The Company's capital management objectives are: |
||
|
|
• to ensure that the Company will be able to continue as a going concern; and |
||
|
|
• to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The policy is that debt should not exceed 25% of net assets. |
||
|
|
|
|
|
|
|
|
2012 |
2011 |
|
|
|
£'000 |
£'000 |
|
|
Debt |
- |
- |
|
|
|
_________ |
_______ |
|
|
Equity |
|
|
|
|
Equity share capital |
14,768 |
14,768 |
|
|
Retained earnings and other reserves |
129,337 |
144,074 |
|
|
|
_________ |
_______ |
|
|
|
144,105 |
158,842 |
|
|
|
_________ |
_______ |
|
|
Debt as a % of net assets |
0.0% |
0.0% |
|
|
|
_________ |
_______ |
|
|
|
|
|
|
|
The Board, with the assistance of the Manager monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes: |
||
|
|
• the planned level of gearing, which takes account of the Manager's views on the market; |
||
|
|
• the need to buy back equity shares for cancellation, which takes account of the difference between the net asset value per share and the share price (ie the level of share price discount or premium); |
||
|
|
• the need for new issues of equity shares; and |
||
|
|
• the extent to which revenue in excess of that which is required to be distributed should be retained. |
||
|
|
|
||
|
|
The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. |
||
|
|
|
||
|
|
The Company had no loan gearing at the year end (2011 - nil). |
||
|
18. |
Fair value hierarchy |
||||||
|
|
IFRS 7 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels: |
||||||
|
|
|
||||||
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; |
||||||
|
|
Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and |
||||||
|
|
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
||||||
|
|
|
||||||
|
|
The financial assets and liabilities measured at fair value in the Balance Sheet are grouped into the fair value hierarchy at the Balance Sheet date are as follows: |
||||||
|
|
|
||||||
|
|
Group |
||||||
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
As at 31 March 2012 |
Note |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Quoted equities |
a) |
142,664 |
- |
- |
142,664 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
Net fair value |
|
142,664 |
- |
- |
142,664 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 March 2011 |
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Quoted equities |
a) |
157,317 |
- |
- |
157,317 |
|
|
|
Unlisted GDR |
b) |
- |
223 |
- |
223 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
Net fair value |
|
157,317 |
223 |
- |
157,540 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
As at 31 March 2012 |
Note |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Quoted equities |
a) |
9,539 |
- |
- |
9,539 |
|
|
|
Investment in Subsidiary |
c) |
- |
134,194 |
- |
134,194 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
Net fair value |
|
9,539 |
134,194 |
- |
143,733 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 March 2011 |
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Quoted equities |
a) |
10,830 |
- |
- |
10,830 |
|
|
|
Investment in Subsidiary |
c) |
- |
147,477 |
- |
147,477 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
Net fair value |
|
10,830 |
147,477 |
- |
158,307 |
|
|
|
|
|
_________ |
_______ |
_______ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
a) |
Quoted equities |
|||||
|
|
|
The fair value of the Group's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. |
|||||
|
|
b) |
Unlisted GDR |
|||||
|
|
|
The fair value of the Group's investment in an unlisted GDR in the previous year was determined using observable market inputs other than quoted prices included within Level 1. |
|||||
|
|
c) |
Investment in Subsidiary |
|||||
|
|
|
The fair value of the Company's investment in its Subsidiary has been determined by reference to the Subsidiary company's net asset value at the reporting date and hence is categorised in Fair Value Level 2. |
|||||
|
19. |
Related parties |
|
|
Aberdeen Asset Management Asia Limited ('AAM Asia') received fees for its services as investment manager and company secretary. Aberdeen Asset Management PLC, the ultimate parent company of AAM Asia, received fees for the provision of marketing services to the Company. Further details of both these arrangements are provided in notes 4 and 5 respectively. |
|
|
|
|
|
The Directors of the Company received fees for their services. |
|
20. |
Controlling party |
|
|
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling party. |
|
This Annual Financial Report announcement is not the Company's statutory accounts. The above results for the year ended 31 March 2012 are an abridged version of the Company's full accounts. The 2012 and 2011 statutory accounts received unqualified reports from the Company's Auditor and did not include any reference to matters to which the Auditor drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498 of the Companies Act 2006. The financial information for 2011 is derived from the statutory accounts for 2011 which have been delivered to the Registrar of Companies. The 2012 statutory accounts will be filed with the Registrar of Companies in due course. |
|
|
|
The Annual Report will be posted to shareholders in June 2012. Further copies may be obtained from the registered office, Bow Bells House, 1 Bread Street, London EC4M 9HH or from the Company's website, www.newindia-trust.co.uk. |
|
|
|
The Annual General Meeting will be held at Bow Bells House, 1 Bread Street, London EC4M 9HH at 11.30 a.m. on 20 September 2012. |
|
|
|
By Order of the Board Aberdeen Asset Management PLCSecretaries
31 May 2012 |
This information is provided by RNS
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