Net Asset Value(s)

India Capital Growth Fund Limited
08 August 2006


India Capital Growth Fund

31 July, 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

8 August 2006

Net Asset Values

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

Net asset value per share - undiluted               82.22p

Net asset value per share - fully diluted           85.18p

Progress Update

The Market Environment


Market volatility considerably lessened towards the end of July with uncertainty
being reduced over interest rates (the Reserve Bank of India raised its reverse
repo rate from 5.75% to 6.0%), the monsoon (below its annual average but
sufficient) and quarterly earnings (most companies reported healthy earnings for
the quarter ended June 2006).


However while the BSE Sensex is still above its closing level end of last year,
the BSE Small Cap Index is still well down, (Table 1).

Market Changes          BSE Sensex (% Change)   BSE Small Cap Index (% Change)
31 Dec '05 to 31 July                    14.5%                           -13.7%
1 July to 31 July                         1.3%                            -4.4%


During July the Rupee moved to 86.65 against Sterling, depreciating by 2.61%.
Since 1 Jan 2006 the Rupee has depreciated by 11.25% against Sterling.


Activity During the Month


During the month the Company has continued to build out the core portfolio, and
has acquired a stake in S Kumars Nationwide, a manufacturer of textiles and
apparels, which is now among the top 5 small cap holdings.


Where it had not been possible to acquire meaningful stakes, a number of
holdings were sold during the month. The Company has also taken advantage of
market volatility to reduce its stake in one large cap and has exited from one
mid cap. As a consequence, cash remains at 35% of portfolio. With companies
reporting broadly positive results for the June quarter and with stock markets
at current levels there are plenty of interesting opportunities to deploy funds
into sound companies at attractive prices.









Summary of Holdings at 31 July 2006 by Size

Category                             No. of Companies            % of Portfolio
Small and Mid Cap                                  25                     48.4%
Large Cap                                           5                     16.3%
Total Investments                                  30                     64.7%
Cash                                                                      35.3%



Small and Mid Cap Holdings at 31 July 2006 by Sector

Sector Summary                                                   % of Portfolio
Engineering / Other Manufacturing                                          8.9%
Steel / Iron Ore                                                           6.1%
Textiles                                                                   5.5%
Housing & Construction                                                     5.5%
Auto Comp                                                                  5.4%
Shipping                                                                   3.3%
Electricals / Lighting Systems                                             2.2%
Agro Chemicals                                                             2.2%
Sugar                                                                      2.1%
Airlines                                                                   2.0%
Housing Finance                                                            1.9%
Hotels                                                                     1.4%
Other                                                                      1.9%



Top 5 Small and Mid Cap Holdings at 31 July 2006

Holding                       Sector                             % of Portfolio
S Kumars Nationwide           Textiles                                     4.4%
JSW Steel                     Steel                                        3.5%
Varun Shipping                Shipping                                     3.3%
Mahindra Ugine                Auto Components                              2.8%
Kirloskar Ferrous             Auto Components                              2.6%



8 August 2006





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