Net Asset Value(s)

India Capital Growth Fund Limited
05 September 2006


India Capital Growth Fund Limited
05 September 2006

India Capital Growth Fund

31 August, 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

05 September 2006

Net Asset Values

The Company announces its net asset values per share as at 31 August 2006:

Net asset value per share - undiluted               87.40p

Net asset value per share - fully diluted           89.50p

Progress Update

The Market Environment

Market volatility reduced substantially in August compared to the previous
month. FII inflows were strong at  US$ 1,032 Mn (compared to US$ 254 Mn in
July),  on the back of better monsoon rains, greater clarity on interest  rates
and continued corporate growth, and despite an increase in interest rates by the
Reserve Bank of India.

The BSE Sensex rose 8.9% and the BSE Small Cap Index rose 12.6% during the
month, however the BSE Small Cap Index  remains below its level at the start of
the year.

Market Changes                 BSE Sensex (% Change)      BSE Small Cap Index 
                                                                (%Change)
31 Dec '05 to 31 August                  24.5%                     -2.8%
1 August to 31 August                     8.9%                     12.6%

The Rupee depreciated a further 2.4% against Sterling during the month to a rate 
of 88.72, giving a total depreciation since 1 Jan 2006 of 13.9%.

Activity during the Month

The Group has continued to build stakes in its core portfolio companies, and a
new investment has been made in Logix  Microsystems, a Bangalore-based software
product Company.  This is now among the Group's top five small and mid cap 
holdings. Logix Microsystems develops a 3D animation product used by auto
dealers in the USA to display vehicles to  customers.

Taking advantage of higher share prices the Group exited fully from one large
cap and one mid-cap investment.  Stakes in other large cap stocks will be
reduced at an opportune time.

Summary of Holdings at 31 August 2006 by Size

Category                        No. of Companies       % of Portfolio
Small and Mid Cap                      26                   57.4%
Large Cap                               4                   14.0%
Total Investments                      30                   71.4%
Cash                                                        28.6%


Small and Mid Cap Holdings at 31 August 2006 by Sector

Sector Summary                                                 % of Portfolio
Engineering / Other Manufacturing                                     9.3%
Textiles                                                              6.6%
Steel / Iron Ore                                                      6.2%
Housing & Construction                                                6.2%
Auto Components                                                       5.3%
Electricals / Lighting Systems                                        3.4%
IT                                                                    3.3%
Shipping                                                              3.3%
Housing Finance                                                       2.6%
Sugar                                                                 2.6%
Agro Chemicals                                                        2.3%
Airlines                                                              2.2%
Hotels                                                                1.5%
Other                                                                 2.6%


Top 5 Small and Mid Cap Holdings at 31 August 2006

Company                                   Sector               % of Portfolio
S Kumars Nationwide                       Textiles                     5.1%
JSW Steel                                 Steel                        3.9%
Asian Electronics                         Electricals                  3.4%
Logix Microsystems                        IT                           3.3%
Varun Shipping                            Shipping                     3.3%

05 September 2006






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