nvcsrs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08266
The India Fund, Inc.
(Exact name of registrant as specified in charter)
345 Park Avenue
New York, NY 10154
(Address of principal executive offices) (Zip code)
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
(Name and address of agent for service)
Registrants telephone number, including area code: 212-583-5000
Date of fiscal year end: December 31, 2009
Date of reporting period: June 30, 2009
Form N-CSR is to be used by management investment companies to file reports with the Commission not
later than 10 days after the transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission
will make this information public. A registrant is not required to respond to the collection of
information contained in Form N-CSR unless the Form displays a currently valid Office of Management
and Budget (OMB) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the burden to Secretary,
Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed
this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
The India
Fund, Inc.
August 25, 2009
Dear Fund Shareholder,
We are pleased to provide you with the unaudited financial
statements of The India Fund, Inc. (the Fund) for
the six months ended June 30, 2009. The Funds net
asset value (NAV) per share closed at $26.07 on
June 30, 2009, representing a 50% increase from the
Funds NAV per share on December 31, 2008, which was
$17.38. The Fund modestly underperformed comparative indices,
such as the S&P/IFC Investable India Index* and BSE 500
Index*, which rose 55% and 56% respectively. The BSE Sensex*
also surged by a similar 53%, making India the top performing
equity market not just in Asia, but among all emerging markets.
Persistent concerns following last years near-meltdown in
global financial markets helped 2009 open on a downbeat note, a
sentiment reinforced by the poor macro data released in the
first several weeks of the year. Fortunately, by late February,
positive signs began emerging that the global economys
sharp contraction was moderating, accompanied by a bottoming out
in commodity prices and a gradual thawing of credit markets.
Aiding this recovery in no small part was an unprecedented
fiscal and monetary stimulus effort launched by governments and
central banks around the world (with the global fiscal stimulus
alone estimated at greater than $2.1 trillion, or over 4% of
global gross domestic product (GDP)). We believe
most investors were initially skeptical, as evidenced by low
trading volumes. However, as the rally in emerging markets
worldwide continued to gather steam, we believe investors
eventually had little choice but to put money to work.
The catalyst for Indias outperformance was the May
parliamentary election, a watershed event for Indian politics.
The surprisingly strong performance by the India National
Congress party (INC) resulted in its United
Progressive Alliance coalition winning 262 out of
543 seats. We believe this is a clear mandate, basically
ensuring a stable government that can pursue ambitious,
progressive economic reforms. We believe that investors, sensing
that Indian politics might at last have made a break from its
disappointing past of smaller coalition partners blocking
crucial reform decisions, sparked a buying frenzy, driving the
market up 17% in one trading session. The bullish view is that
the new government should prove far more successful in
deregulation, privatization (especially of sensitive
sectors), and increasing investment in the rural sector, hence
putting the economy on a stronger long-term growth trajectory.
Sectors that are expected to be positively impacted range from
financial services to retail and education. More broadly
speaking, labor reforms, disinvestment of state-owned companies
and implementation of a goods and services tax (a key component
of the governments tax reform agenda) are all expected to
be accelerated.
Despite its relatively high budget deficit (6.8% of GDP), the
Indian government thus far in 2009 has announced a series of
measures to support the domestic economy. The governments
stimulus package includes $4 billion of infrastructure
spending, reduction of duties, relaxing external borrowing
norms, and accelerated depreciation measures. The Central Bank
(Reserve Bank of India) freed up $4 billion by cutting the
cash reserve requirement rate by 400 basis points
(bps) and reducing the repurchase and
1
THE
INDIA FUND, INC.
reverse repurchase rates to boost liquidity. We believe all of
this helped curb further deterioration in the domestic economy.
As it was, Indias GDP growth slowed down considerably to
6.7% in the year ended March 2009 compared to a Compound Annual
Growth Rate of 8.9% in the previous four years. While the Indian
governments previous fiscal stimulus packages focused on
sectors such as autos and consumers, the recent budget laid a
much stronger emphasis on infrastructure development and social
programs in an effort to broaden the impact of the stimulus.
Outlays for the rural employment guarantee scheme were increased
by 140% to $8.0 billion, urban infrastructure by 87% to
$2.8 billion, and rural infrastructure by 45% to
$9.6 billion. Other focused areas included irrigation,
healthcare, power generation and national highways. We believe
these spending measures will aggravate the already high fiscal
deficit, as the government intends to increase borrowings
significantly in order to meet the new funding requirements.
Although not explicitly stated in the budgets text, we
expect the new, INC-led coalition government to resurrect
privatization efforts, both because of the new, more conducive
political environment, and because of the hard reality that the
government needs the money.
Recent history has shown that while Indias economy is one
of the most insular in Asia with exports accounting
for just 18% of GDP it is by no means detached or
de-coupled from the global economy
especially when the global economy is experiencing unprecedented
upheaval. Although India may not be export-dependent to the same
degree as the rest of Asia, it is very reliant on capital flows,
the direction of commodity prices, and global investor
sentiment. During 2008, India saw a $12.0 billion portfolio
outflow, while the current rally, in-line with the resurgence of
foreign interest in emerging markets, has seen a
$5.1 billion inflow. In short, we believe foreign portfolio
inflows continue to be the main driver of market sentiment for
India, which currently is positive (despite, as mentioned, the
prospect of record-high fiscal deficits). The stabilization in
crude oil prices at current levels of $65-70 per barrel has also
been a positive development, with the meaningful decline from
its peak in the second half of 2008 helping India to post a
current account surplus of $4.7 billion in the quarter
ending March 2009.
In light of Indias recent outperformance, we expect the
market to be more sentiment-driven than usual in the short-term.
The equity markets first half of 2009 outperformance was
well ahead of actual improvement in earnings, though this can be
said for all Asian markets, and perhaps all markets globally.
For the second quarter ended June 2009, Corporate India
(ex-financials) reported a 3% decline in revenues and an 8% dip
in net income. However, encouragingly, the aggregate EBITDA
(earnings before the deduction of interest, tax, and
amortization expenses) margin surged nearly 300 bps
quarter-on-quarter
and 27 bps
year-on-year,
to 27.2%. India now trades on 13.8x 2010 earnings compared to
13.3x for the overall region, with both having similar earnings
per share growth forecasts of
15-16%
year-on-year.
Notwithstanding the similar near-term growth/valuation profile,
we believe Indias longer-term internal growth-drivers are
in fact superior, given its better demographics, burgeoning
rural economy, and relatively higher returns on capital compared
to the rest of the region. Overall, we believe Indian equities
are well-placed for long-term steady performance.
2
THE
INDIA FUND, INC.
On behalf of the Board of Directors, we thank you for your
participation and continued support of the Fund. If you have any
questions, please do not hesitate to visit our website at
www.blackstone.com or call our toll-free number, 1-866-800-8933.
Sincerely,
Prakash Melwani
Director and President
* Please note that the
S&P/IFC Investable India Index, BSE-500 and BSE Sensex
Index are unmanaged indices. Investors cannot directly invest in
either index. The indices do not reflect transaction costs or
manager fees.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. There is no guarantee that the Funds or
any other investment technique will be effective under all
market conditions.
3
THE
INDIA FUND, INC.
Fundamental
Periodic Repurchase Policy
The Fund has adopted the following
fundamental policy regarding periodic repurchases:
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a)
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The Fund will make offers to
repurchase its shares at semi-annual intervals pursuant to
Rule 23c-3
under the Investment Company Act of 1940, as amended from time
to time (Offers). The Board of Directors may place
such conditions and limitations on Offers as may be permitted
under
Rule 23c-3.
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b)
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14 days prior to the last
Friday of the Funds first and third fiscal quarters, or
the next business day if such Friday is not a business day, will
be the deadline (the Repurchase Request Deadline) by
which the Fund must receive repurchase requests submitted by
stockholders in response to the most recent Offer.
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c)
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The date on which the repurchase
price for shares is to be determined (the Repurchase
Pricing Date) shall occur no later than the last Friday of
the Funds first and third fiscal quarters, or the next
business day if such day is not a business day.
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d)
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Offers may be suspended or
postponed under certain circumstances, as provided for in
Rule 23c-3.
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(For further details, see
Note F to the Financial Statements.)
4
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments
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INDIA (99.79% of
holdings)
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COMMON
STOCKS (99.85% of holdings)
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NUMBER
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PERCENT OF
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OF
SHARES
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SECURITY
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HOLDINGS
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COST
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VALUE
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India
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99.64%
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Apparel Manufacturers
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0.16%
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1,570,212
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Provogue (India), Ltd.
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$
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3,198,277
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$
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1,606,103
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3,198,277
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1,606,103
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Beverages
Alcoholic
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0.18%
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95,380
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United Spirits, Ltd.
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1,409,894
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1,738,263
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1,409,894
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1,738,263
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Beverages-Non
Alcoholic
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0.22%
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142,555
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Tata Tea, Ltd.
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1,903,363
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2,148,963
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1,903,363
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2,148,963
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Building &
Construction
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3.67%
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424,342
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Gammon India, Ltd.
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722,165
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1,635,628
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1,487,351
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Hindustan Construction Co., Ltd.
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2,991,532
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3,216,565
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771,907
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IVRCL Infrastructures and Projects, Ltd.
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2,751,197
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5,524,440
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2,610,769
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Jaiprakash Associates, Ltd.
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4,441,534
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11,174,996
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645,860
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KEC International, Ltd.
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5,057,020
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5,446,769
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435,339
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Madhucon Projects, Ltd.
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2,490,015
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1,591,684
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1,677,609
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Nagarjuna Construction Co., Ltd.
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1,957,527
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4,720,628
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94,969
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Patel Engineering, Ltd.
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363,025
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824,895
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234,595
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Titagarh Wagons, Ltd.
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3,985,505
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2,087,874
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24,759,520
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36,223,479
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Cement
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1.21%
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2,146,428
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Ambuja Cements, Ltd.
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2,114,924
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3,927,240
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64,909
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Grasim Industries, Ltd.
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2,166,444
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3,130,279
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486,089
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India Cements, Ltd.
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1,706,641
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1,327,727
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808,040
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Sagar Cements, Ltd.
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3,467,591
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3,592,788
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9,455,600
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11,978,034
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Chemicals
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0.95%
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1,602,225
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Chambal Fertilizers and Chemicals, Ltd.
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1,537,154
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2,252,580
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302,837
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Tata Chemicals, Ltd.
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1,034,807
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1,377,164
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1,937,084
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United Phosphorus, Ltd.
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6,065,073
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5,768,188
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8,637,034
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9,397,932
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5
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
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COMMON
STOCKS (continued)
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NUMBER
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PERCENT OF
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OF
SHARES
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SECURITY
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HOLDINGS
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COST
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VALUE
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India (continued)
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Coal
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0.13%
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1,361,124
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Gujarat NRE Coke, Ltd.
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$
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601,616
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$
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1,285,688
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601,616
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1,285,688
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Computer Software &
Programming
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11.13%
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632,750
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Everonn Systems India, Ltd.+
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6,844,134
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5,416,778
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2,235,266
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Infosys Technologies, Ltd.
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31,609,948
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82,910,848
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2,030,873
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KPIT Cummins Infosystems, Ltd.
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1,787,620
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2,106,970
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118,033
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Mphasis, Ltd.
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513,547
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949,956
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244,735
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Patni Computer Systems, Ltd.
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954,331
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1,322,912
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591,000
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Satyam Computer Services, Ltd.
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1,002,612
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874,687
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41,597
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Satyam Computer Services, Ltd. ADR
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139,529
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129,367
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931,573
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Tanla Solutions, Ltd.
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3,289,062
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1,313,595
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816,455
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Tata Consultancy Services, Ltd.
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5,130,658
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6,641,739
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1,034,232
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Wipro, Ltd.
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5,800,528
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8,153,172
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57,071,969
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109,820,024
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Consumer Non-Durables
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1.61%
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3,984,047
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ITC, Ltd.
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9,469,097
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15,838,884
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9,469,097
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15,838,884
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Consumer Products
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0.70%
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3,446,837
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Marico, Ltd.
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4,939,014
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5,248,863
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66,027
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Titan Industries, Ltd.
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1,161,330
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1,617,975
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6,100,344
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6,866,838
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Consumer Staples
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2.29%
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244,374
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Colgate-Palmolive (India), Ltd.
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1,851,299
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3,090,830
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157,718
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Dabur India, Ltd.
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273,794
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414,995
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3,413,509
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Hindustan Unilever, Ltd.
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16,112,357
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19,032,424
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|
|
|
|
|
18,237,450
|
|
|
|
22,538,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution &
Wholesale
|
|
|
0.53%
|
|
|
|
|
|
|
|
|
|
|
302,957
|
|
|
Adani Enterprises, Ltd.
|
|
|
4,928,109
|
|
|
|
5,179,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,928,109
|
|
|
|
5,179,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial
Services
|
|
|
2.81%
|
|
|
|
|
|
|
|
|
|
|
688,590
|
|
|
Indiabulls Financial Services, Ltd.
|
|
$
|
1,659,035
|
|
|
$
|
2,879,127
|
|
|
1,986,531
|
|
|
Infrastructure Development Finance Co., Ltd.
|
|
|
2,312,304
|
|
|
|
5,629,299
|
|
|
2,859,731
|
|
|
Power Finance Corp.
|
|
|
8,951,667
|
|
|
|
11,625,772
|
|
|
212,989
|
|
|
Reliance Capital, Ltd.
|
|
|
2,711,459
|
|
|
|
4,003,020
|
|
|
2,081,584
|
|
|
SREI Infrastructure Finance, Ltd.
|
|
|
4,617,905
|
|
|
|
3,565,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,252,370
|
|
|
|
27,702,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Operations
|
|
|
0.52%
|
|
|
|
|
|
|
|
|
|
|
184,834
|
|
|
Century Textiles and Industries, Ltd.
|
|
|
879,610
|
|
|
|
1,519,802
|
|
|
798,398
|
|
|
Sintex Industries, Ltd.
|
|
|
2,991,381
|
|
|
|
3,643,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,870,991
|
|
|
|
5,163,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-Services &
Consulting
|
|
|
0.32%
|
|
|
|
|
|
|
|
|
|
|
674,771
|
|
|
Core Projects & Technologies, Ltd.
|
|
|
1,598,735
|
|
|
|
1,826,903
|
|
|
649,836
|
|
|
NIIT Technologies, Ltd.
|
|
|
914,629
|
|
|
|
1,359,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,513,364
|
|
|
|
3,186,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Integrated
|
|
|
0.72%
|
|
|
|
|
|
|
|
|
|
|
581,830
|
|
|
CESC, Ltd.
|
|
|
3,580,123
|
|
|
|
3,352,157
|
|
|
1,925,757
|
|
|
PTC India, Ltd.
|
|
|
2,966,886
|
|
|
|
3,720,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,547,009
|
|
|
|
7,072,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Transmission
|
|
|
0.14%
|
|
|
|
|
|
|
|
|
|
|
604,904
|
|
|
Power Grid Corp. of India, Ltd.
|
|
|
1,019,764
|
|
|
|
1,380,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,019,764
|
|
|
|
1,380,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics &
Electrical Equipment
|
|
|
9.63%
|
|
|
|
|
|
|
|
|
|
|
28,491
|
|
|
ABB, Ltd.
|
|
|
296,951
|
|
|
|
462,172
|
|
|
127,347
|
|
|
Bharat Electronics, Ltd.
|
|
|
2,551,070
|
|
|
|
3,496,360
|
|
|
612,941
|
|
|
Bharat Heavy Electricals, Ltd.
|
|
|
5,904,979
|
|
|
|
28,204,498
|
|
|
4,090,583
|
|
|
Exide Industries, Ltd.
|
|
|
6,051,002
|
|
|
|
5,917,491
|
|
|
2,901,824
|
|
|
Jyoti Structures, Ltd.
|
|
|
3,991,456
|
|
|
|
8,247,226
|
|
|
765,585
|
|
|
Lanco Infratech, Ltd.+
|
|
|
2,593,355
|
|
|
|
5,720,512
|
|
|
651,326
|
|
|
MIC Electronics, Ltd.
|
|
|
514,605
|
|
|
|
498,301
|
|
|
2,484,826
|
|
|
NTPC, Ltd.
|
|
|
10,232,929
|
|
|
|
10,117,218
|
|
|
378,488
|
|
|
Punj Lloyd, Ltd.
|
|
|
1,551,654
|
|
|
|
1,656,403
|
|
|
807,125
|
|
|
Reliance Infrastructure, Ltd.
|
|
|
9,595,987
|
|
|
|
20,176,019
|
|
|
247,177
|
|
|
Siemens India, Ltd.
|
|
|
1,526,113
|
|
|
|
2,437,458
|
|
|
337,287
|
|
|
Tata Power Co., Ltd.
|
|
|
5,143,308
|
|
|
|
8,094,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49,953,409
|
|
|
|
95,028,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Alternate
Sources
|
|
|
0.42%
|
|
|
|
|
|
|
|
|
|
|
1,319,704
|
|
|
Suzlon Energy, Ltd.
|
|
$
|
1,622,310
|
|
|
$
|
2,856,764
|
|
|
390,973
|
|
|
Webel-Sl Energy Systems, Ltd.
|
|
|
3,247,754
|
|
|
|
1,258,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,870,064
|
|
|
|
4,115,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering
|
|
|
2.20%
|
|
|
|
|
|
|
|
|
|
|
569,219
|
|
|
Larsen & Toubro, Ltd.
|
|
|
12,448,201
|
|
|
|
18,634,927
|
|
|
158,375
|
|
|
McNally Bharat Engineering Co., Ltd.
|
|
|
345,315
|
|
|
|
432,593
|
|
|
312,159
|
|
|
Thermax, Ltd.
|
|
|
184,068
|
|
|
|
2,670,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,977,584
|
|
|
|
21,738,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
|
|
|
17.54%
|
|
|
|
|
|
|
|
|
|
|
599,787
|
|
|
Axis Bank, Ltd.
|
|
|
5,634,504
|
|
|
|
10,437,583
|
|
|
727,050
|
|
|
Bank of Baroda
|
|
|
3,878,750
|
|
|
|
6,758,279
|
|
|
167,300
|
|
|
Canara Bank, Ltd.
|
|
|
605,435
|
|
|
|
921,800
|
|
|
307,371
|
|
|
Federal Bank, Ltd.
|
|
|
1,510,751
|
|
|
|
1,592,516
|
|
|
931,795
|
|
|
HDFC Bank, Ltd.
|
|
|
16,970,713
|
|
|
|
29,015,869
|
|
|
788,683
|
|
|
Housing Development Finance Corp., Ltd.
|
|
|
10,281,973
|
|
|
|
38,613,446
|
|
|
1,829,036
|
|
|
ICICI Bank, Ltd.
|
|
|
12,523,091
|
|
|
|
27,566,308
|
|
|
82,700
|
|
|
ICICI Bank, Ltd. ADR
|
|
|
2,462,883
|
|
|
|
2,439,650
|
|
|
1,067,123
|
|
|
India Infoline, Ltd.
|
|
|
1,447,259
|
|
|
|
2,713,195
|
|
|
123,000
|
|
|
Oriental Bank of Commerce
|
|
|
502,897
|
|
|
|
460,367
|
|
|
890,586
|
|
|
Punjab National Bank, Ltd.
|
|
|
9,311,047
|
|
|
|
12,598,896
|
|
|
450,000
|
|
|
Rural Electrification Corp., Ltd.
|
|
|
701,759
|
|
|
|
1,532,095
|
|
|
3,401,439
|
|
|
South Indian Bank, Ltd.
|
|
|
4,224,867
|
|
|
|
6,454,249
|
|
|
682,488
|
|
|
State Bank of India
|
|
|
3,473,265
|
|
|
|
24,818,458
|
|
|
22,550
|
|
|
State Bank of India GDR
|
|
|
257,070
|
|
|
|
1,614,285
|
|
|
1,093,163
|
|
|
Union Bank of India, Ltd.
|
|
|
2,864,924
|
|
|
|
5,505,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76,651,188
|
|
|
|
173,042,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food
|
|
|
0.92%
|
|
|
|
|
|
|
|
|
|
|
656,550
|
|
|
Bajaj Hindusthan, Ltd.
|
|
|
1,022,340
|
|
|
|
2,799,983
|
|
|
1,984,744
|
|
|
Balrampur Chini Mills, Ltd.
|
|
|
2,545,886
|
|
|
|
4,362,667
|
|
|
1,219,005
|
|
|
Lakshmi Energy and Foods, Ltd.
|
|
|
3,674,986
|
|
|
|
1,908,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,243,212
|
|
|
|
9,071,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels &
Leisure
|
|
|
0.52%
|
|
|
|
|
|
|
|
|
|
|
5,206,131
|
|
|
Hotel Leelaventure, Ltd.
|
|
|
3,698,048
|
|
|
|
3,477,637
|
|
|
1,222,887
|
|
|
Indian Hotels Co., Ltd.
|
|
|
2,043,767
|
|
|
|
1,687,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,741,815
|
|
|
|
5,164,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Power
Producers
|
|
|
0.20%
|
|
|
|
|
|
|
|
|
|
|
558,143
|
|
|
Reliance Power, Ltd.+
|
|
$
|
1,309,240
|
|
|
$
|
1,952,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,309,240
|
|
|
|
1,952,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies
|
|
|
0.27%
|
|
|
|
|
|
|
|
|
|
|
345,130
|
|
|
Bajaj Holdings and Investment, Ltd.
|
|
|
3,401,527
|
|
|
|
2,642,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,401,527
|
|
|
|
2,642,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
0.05%
|
|
|
|
|
|
|
|
|
|
|
1,096,000
|
|
|
Wire and Wireless India, Ltd.+
|
|
|
499,548
|
|
|
|
454,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
499,548
|
|
|
|
454,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
Conglomerates
|
|
|
0.05%
|
|
|
|
|
|
|
|
|
|
|
62,570
|
|
|
UTV Software Communications, Ltd.
|
|
|
499,981
|
|
|
|
473,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
499,981
|
|
|
|
473,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal
Diversified
|
|
|
1.61%
|
|
|
|
|
|
|
|
|
|
|
381,639
|
|
|
Hindustan Zinc, Ltd.
|
|
|
3,299,117
|
|
|
|
4,789,109
|
|
|
876,347
|
|
|
Sterlite Industries (India), Ltd.
|
|
|
7,454,576
|
|
|
|
11,119,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,753,693
|
|
|
|
15,908,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorcycle/Motor
Scooter
|
|
|
0.19%
|
|
|
|
|
|
|
|
|
|
|
89,873
|
|
|
Bajaj Auto, Ltd.
|
|
|
834,320
|
|
|
|
1,864,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
834,320
|
|
|
|
1,864,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
|
|
0.10%
|
|
|
|
|
|
|
|
|
|
|
546,262
|
|
|
Reliance Natural Resources, Ltd.+
|
|
|
709,990
|
|
|
|
957,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
709,990
|
|
|
|
957,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum Related
|
|
|
16.74%
|
|
|
|
|
|
|
|
|
|
|
219,436
|
|
|
Bharat Petroleum Corp., Ltd.
|
|
|
1,895,979
|
|
|
|
1,970,137
|
|
|
2,295,070
|
|
|
Cairn India, Ltd.+
|
|
|
7,926,145
|
|
|
|
11,160,350
|
|
|
638,799
|
|
|
GAIL India, Ltd.
|
|
|
3,651,266
|
|
|
|
3,839,728
|
|
|
437,940
|
|
|
Hindustan Petroleum Corp., Ltd.
|
|
|
1,748,942
|
|
|
|
2,733,868
|
|
|
177,739
|
|
|
Indian Oil Corp., Ltd.
|
|
|
1,303,385
|
|
|
|
1,974,033
|
|
|
1,250,517
|
|
|
Oil and Natural Gas Corp., Ltd.
|
|
|
16,403,536
|
|
|
|
27,855,676
|
|
|
2,736,989
|
|
|
Reliance Industries, Ltd.+
|
|
|
25,975,068
|
|
|
|
115,601,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58,904,321
|
|
|
|
165,135,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
|
|
2.56%
|
|
|
|
|
|
|
|
|
|
|
716,459
|
|
|
Cipla, Ltd.
|
|
$
|
2,729,368
|
|
|
$
|
3,788,312
|
|
|
323,418
|
|
|
Glenmark Pharmaceuticals, Ltd.+
|
|
|
1,808,267
|
|
|
|
1,469,069
|
|
|
749,525
|
|
|
Lupin, Ltd.
|
|
|
12,229,590
|
|
|
|
12,784,404
|
|
|
315,912
|
|
|
Sun Pharmaceutical Industries, Ltd.
|
|
|
4,358,199
|
|
|
|
7,194,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,125,424
|
|
|
|
25,236,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing
|
|
|
0.33%
|
|
|
|
|
|
|
|
|
|
|
600,000
|
|
|
Business India Publications (Preferential Shares)+
|
|
|
1,003,792
|
|
|
|
169,085
|
|
|
2,000,000
|
|
|
Jagran Prakashan, Ltd.
|
|
|
3,455,146
|
|
|
|
3,131,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,458,938
|
|
|
|
3,300,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
Operation/Development
|
|
|
0.84%
|
|
|
|
|
|
|
|
|
|
|
457,229
|
|
|
Housing Development & Infrastructure, Ltd.
|
|
|
1,662,056
|
|
|
|
2,221,004
|
|
|
853,253
|
|
|
Indiabulls Real Estate, Ltd.
|
|
|
2,802,966
|
|
|
|
3,485,682
|
|
|
1,559,600
|
|
|
Unitech, Ltd.
|
|
|
2,511,492
|
|
|
|
2,591,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,976,514
|
|
|
|
8,298,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Jewelry
|
|
|
0.12%
|
|
|
|
|
|
|
|
|
|
|
495,704
|
|
|
Gitanjali Gems, Ltd.
|
|
|
1,535,209
|
|
|
|
1,165,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,535,209
|
|
|
|
1,165,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Stores
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
161,973
|
|
|
Brandhouse Retails, Ltd.+
|
|
|
108,710
|
|
|
|
78,950
|
|
|
10,000
|
|
|
Pantaloon Retail India, Ltd.
|
|
|
66,580
|
|
|
|
65,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
175,290
|
|
|
|
144,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipbuilding
|
|
|
0.69%
|
|
|
|
|
|
|
|
|
|
|
483,900
|
|
|
ABG Shipyard, Ltd.
|
|
|
1,019,622
|
|
|
|
2,009,642
|
|
|
4,700,000
|
|
|
Pipavav Shipyard, Ltd.+
|
|
|
9,488,959
|
|
|
|
4,807,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,508,581
|
|
|
|
6,817,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
4.83%
|
|
|
|
|
|
|
|
|
|
|
496,564
|
|
|
Jindal Saw, Ltd.
|
|
$
|
5,824,082
|
|
|
$
|
4,028,590
|
|
|
462,075
|
|
|
Jindal Steel & Power, Ltd.
|
|
|
2,549,169
|
|
|
|
24,030,215
|
|
|
307,074
|
|
|
JSW Steel, Ltd.
|
|
|
3,868,642
|
|
|
|
3,948,598
|
|
|
931,600
|
|
|
Monnet Ispat & Energy, Ltd.
|
|
|
7,457,015
|
|
|
|
4,601,118
|
|
|
1,421,389
|
|
|
Steel Authority of India, Ltd.
|
|
|
2,660,075
|
|
|
|
4,483,287
|
|
|
434,919
|
|
|
Tata Steel, Ltd.
|
|
|
1,899,479
|
|
|
|
3,547,988
|
|
|
746,619
|
|
|
Welspun Gujarat Stahl Rohren, Ltd.
|
|
|
2,014,965
|
|
|
|
3,002,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,273,427
|
|
|
|
47,642,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
|
6.56%
|
|
|
|
|
|
|
|
|
|
|
2,940,625
|
|
|
Bharti Airtel, Ltd.+
|
|
|
30,456,698
|
|
|
|
49,236,516
|
|
|
787,640
|
|
|
Mahanagar Telephone Nigam, Ltd.
|
|
|
1,302,685
|
|
|
|
1,599,778
|
|
|
2,176,634
|
|
|
Reliance Communications, Ltd.
|
|
|
10,950,844
|
|
|
|
13,172,032
|
|
|
701,581
|
|
|
Usha Martin, Ltd.
|
|
|
766,631
|
|
|
|
731,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,476,858
|
|
|
|
64,739,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Televisions
|
|
|
0.46%
|
|
|
|
|
|
|
|
|
|
|
246,741
|
|
|
Sun TV Network, Ltd.
|
|
|
1,288,307
|
|
|
|
1,207,566
|
|
|
320,000
|
|
|
Television Eighteen India, Ltd.+
|
|
|
937,317
|
|
|
|
800,918
|
|
|
691,400
|
|
|
Zee Entertainment Enterprises, Ltd.
|
|
|
2,515,646
|
|
|
|
2,548,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,741,270
|
|
|
|
4,557,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Textiles
|
|
|
0.28%
|
|
|
|
|
|
|
|
|
|
|
707,287
|
|
|
Bombay Rayon Fashions, Ltd.
|
|
|
3,396,561
|
|
|
|
2,718,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,396,561
|
|
|
|
2,718,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transport
Marine
|
|
|
0.38%
|
|
|
|
|
|
|
|
|
|
|
3,023,810
|
|
|
Mercator Lines, Ltd.
|
|
|
4,119,492
|
|
|
|
3,733,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,119,492
|
|
|
|
3,733,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
|
0.21%
|
|
|
|
|
|
|
|
|
|
|
1,532,848
|
|
|
Transport Corporation of India, Ltd.
|
|
|
2,619,885
|
|
|
|
2,079,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,619,885
|
|
|
|
2,079,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Components
|
|
|
1.10%
|
|
|
|
|
|
|
|
|
|
|
2,649,188
|
|
|
Apollo Tyres, Ltd.
|
|
|
1,747,229
|
|
|
|
1,703,267
|
|
|
16,268
|
|
|
Bosch, Ltd.
|
|
|
1,015,998
|
|
|
|
1,090,691
|
|
|
1,385,616
|
|
|
Cummins India, Ltd.
|
|
|
8,118,840
|
|
|
|
8,013,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,882,067
|
|
|
|
10,807,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Schedule of Investments (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKS (concluded)
|
|
NUMBER
|
|
|
|
|
PERCENT OF
|
|
|
|
|
|
|
|
OF
SHARES
|
|
|
SECURITY
|
|
HOLDINGS
|
|
|
COST
|
|
|
VALUE
|
|
|
|
|
|
|
|
|
India (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles
|
|
|
3.54%
|
|
|
|
|
|
|
|
|
|
|
4,614,974
|
|
|
Ashok Leyland, Ltd.
|
|
$
|
1,476,314
|
|
|
$
|
2,875,628
|
|
|
442,050
|
|
|
Hero Honda Motors, Ltd.
|
|
|
8,557,673
|
|
|
|
12,898,854
|
|
|
908,709
|
|
|
Mahindra & Mahindra, Ltd.
|
|
|
9,191,403
|
|
|
|
13,136,019
|
|
|
270,076
|
|
|
Maruti Suzuki India, Ltd.
|
|
|
4,728,726
|
|
|
|
6,006,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,954,116
|
|
|
|
34,917,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INDIA
|
|
|
|
|
|
|
578,569,295
|
|
|
|
982,834,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
0.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer Software &
Programming
|
|
|
0.21%
|
|
|
|
|
|
|
|
|
|
|
74,900
|
|
|
Cognizant Technology Solutions Corp.+
|
|
|
1,237,842
|
|
|
|
1,999,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,237,842
|
|
|
|
1,999,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
UNITED STATES
|
|
|
|
|
|
|
1,237,842
|
|
|
|
1,999,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMMON STOCKS
|
|
|
|
|
|
|
579,807,137
|
|
|
|
984,834,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WARRANTS
(0.00% of holdings)
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer Software &
Programming
|
|
|
0.00%
|
|
|
|
|
|
|
|
|
|
|
94,902
|
|
|
Everonn Systems India, Ltd.
|
|
|
159,406
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159,406
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
WARRANTS
|
|
|
159,406
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXCHANGE
TRADED NOTE (0.15% of holdings)
|
|
|
|
|
|
|
|
|
|
31,200
|
|
|
iPath MSCI India Index ETN+
|
|
|
0.15%
|
|
|
|
997,019
|
|
|
|
1,527,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
EXCHANGE TRADED NOTE
|
|
|
997,019
|
|
|
|
1,527,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INVESTMENTS*
|
|
|
100.00%
|
|
|
$
|
580,963,562
|
|
|
$
|
986,361,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes and Abbreviations
|
|
|
ADR
|
|
American Depository
Receipts
|
GDR
|
|
Global Depository
Receipts
|
|
|
|
+
|
|
Non income producing.
|
*
|
|
As of June 30, 2009, the
aggregate cost for federal income tax purposes was $588,333,620.
|
|
|
|
|
|
Excess of value over tax cost
|
|
$
|
426,976,516
|
|
Excess of tax cost over value
|
|
|
(28,948,571
|
)
|
|
|
|
|
|
|
|
$
|
398,027,945
|
|
|
|
|
|
|
12
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Statement of Assets and Liabilities
|
|
|
|
|
ASSETS
|
|
|
|
|
Investments, at value (Cost $580,963,562)
|
|
$
|
986,361,565
|
|
Cash (including Indian Rupees of $16,498,095 with a cost of
$16,298,061)
|
|
|
19,422,978
|
|
Receivables:
|
|
|
|
|
Dividends
|
|
|
2,423,441
|
|
Securities sold
|
|
|
4,600,768
|
|
Prepaid expenses
|
|
|
195,966
|
|
|
|
|
|
|
Total
Assets
|
|
|
1,013,004,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Accrued tax and interest expense payable
|
|
|
4,801,823
|
|
Payable for securities purchased
|
|
|
2,512,835
|
|
Due to Investment Manager
|
|
|
1,572,382
|
|
Due to Administrator
|
|
|
316,210
|
|
Accrued Custodian fees
|
|
|
33,924
|
|
Accrued expenses
|
|
|
637,407
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
9,874,581
|
|
|
|
|
|
|
Net
Assets
|
|
$
|
1,003,130,137
|
|
|
|
|
|
|
NET
ASSET VALUE PER SHARE
($1,003,130,137 / 38,478,622 shares issued and
outstanding)
|
|
$
|
26.07
|
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS CONSIST OF:
|
|
|
|
|
Capital stock, $0.001 par value; 48,804,991 shares
issued
(100,000,000 shares authorized)
|
|
$
|
48,604
|
|
Paid-in capital
|
|
|
1,017,586,761
|
|
Cost of 10,326,369 shares repurchased
|
|
|
(363,038,193
|
)
|
Accumulated net investment loss
|
|
|
(722,727
|
)
|
Accumulated net realized loss on investments
|
|
|
(56,345,512
|
)
|
Net unrealized appreciation in value of investments, foreign
currency holdings and on translation of other assets and
liabilities denominated in foreign currency
|
|
|
405,601,204
|
|
|
|
|
|
|
|
|
$
|
1,003,130,137
|
|
|
|
|
|
|
13
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended
|
|
|
|
June 30,
2009
|
|
Statement of Operations
|
|
(Unaudited)
|
|
|
Investment
Income
|
|
|
|
|
|
|
|
|
Dividends (net of taxes withheld of $0)
|
|
|
|
|
|
$
|
4,313,847
|
|
Interest
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
Total
investment income
|
|
|
|
|
|
|
4,313,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
3,810,307
|
|
|
|
|
|
Administration fees
|
|
|
744,059
|
|
|
|
|
|
Insurance
|
|
|
120,789
|
|
|
|
|
|
Custodian fees
|
|
|
97,577
|
|
|
|
|
|
Directors fees
|
|
|
91,000
|
|
|
|
|
|
Printing
|
|
|
57,211
|
|
|
|
|
|
Audit fees and tax fees
|
|
|
31,168
|
|
|
|
|
|
ICI fees
|
|
|
25,816
|
|
|
|
|
|
NYSE fees
|
|
|
16,458
|
|
|
|
|
|
Transfer Agent fee
|
|
|
5,079
|
|
|
|
|
|
Miscellaneous expenses
|
|
|
16,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
|
|
|
|
|
5,016,362
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss
|
|
|
|
|
|
|
(702,474
|
)
|
|
|
|
|
|
|
|
|
|
Net
Realized and Unrealized Gain (Loss) on Investments, Foreign
Currency Holdings and Translation of Other Assets and
Liabilities Denominated in Foreign Currency:
|
|
|
|
|
|
|
|
|
Net realized loss on:
|
|
|
|
|
|
|
|
|
Security transactions
|
|
|
|
|
|
|
(29,956,016
|
)
|
Foreign currency related transactions
|
|
|
|
|
|
|
(917,322
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30,873,338
|
)
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation in value of investments,
foreign currency holdings and translation of other assets and
liabilities denominated in foreign currency
|
|
|
|
|
|
|
365,801,457
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain on investments, foreign
currency holdings and translation of other assets and
liabilities denominated in foreign currency
|
|
|
|
|
|
|
334,928,119
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations
|
|
|
|
|
|
$
|
334,225,645
|
|
|
|
|
|
|
|
|
|
|
14
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
|
|
Statements
of Changes in Net Assets
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months
|
|
|
For the Year
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
June 30, 2009
|
|
|
December 31,
2008
|
|
|
|
(Unaudited)
|
|
|
|
|
|
INCREASE
(DECREASE) IN NET ASSETS
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
Net investment loss
|
|
$
|
(702,474
|
)
|
|
$
|
(2,786,979
|
)
|
Net realized loss on investments and foreign currency related
transactions
|
|
|
(30,873,338
|
)
|
|
|
(6,229,536
|
)
|
Net change in unrealized appreciation in value of investments,
foreign currency holdings and translation of other assets and
liabilities denominated in foreign currency
|
|
|
365,801,457
|
|
|
|
(1,637,953,762
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
334,225,645
|
|
|
|
(1,646,970,277
|
)
|
|
|
|
|
|
|
|
|
|
Distribution to
shareholders
|
|
|
|
|
|
|
|
|
Net investment income ($0 per share, and $0.26 per share,
respectively)
|
|
|
|
|
|
|
(9,976,560
|
)
|
Short term capital gains ($0 per share, and $0.52 per share,
respectively)
|
|
|
|
|
|
|
(19,953,120
|
)
|
Long term capital gains ($0 per share, and $6.34 per share,
respectively)
|
|
|
|
|
|
|
(243,434,150
|
)
|
|
|
|
|
|
|
|
|
|
Decrease in net assets resulting from distributions
|
|
|
|
|
|
|
(273,363,830
|
)
|
|
|
|
|
|
|
|
|
|
Capital Share
Transactions
|
|
|
|
|
|
|
|
|
Reinvestments
(29,085 shares and 238,163 shares at $16.36 and $16.50
per share, respectively)
|
|
|
475,831
|
|
|
|
3,929,673
|
|
Shares repurchased under Repurchase Offer
(160,011 shares and 4,145,385 shares, respectively)
(net of repurchase fee of $49,315 and $3,389,777, respectively)
(including expenses of $241,973 and $533,804, respectively)
|
|
|
(2,658,430
|
)
|
|
|
(166,632,872
|
)
|
|
|
|
|
|
|
|
|
|
Net decrease in net assets resulting from capital share
transactions
|
|
|
(2,182,599
|
)
|
|
|
(162,703,199
|
)
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets
|
|
|
332,043,046
|
|
|
|
(2,083,037,306
|
)
|
|
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
671,087,091
|
|
|
|
2,754,124,397
|
|
|
|
|
|
|
|
|
|
|
End of period (including undistributed net investment income of
$0 and distribution in excess of net investment income of
$20,253)
|
|
$
|
1,003,130,137
|
|
|
$
|
671,087,091
|
|
|
|
|
|
|
|
|
|
|
15
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
Financial Highlights
For
a Share Outstanding throughout Each Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
|
|
|
For the Year
|
|
|
For the Year
|
|
|
For the Year
|
|
|
For the Year
|
|
|
For the Year
|
|
|
|
Months Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
June 30,
2009
|
|
|
Dec. 31,
2008
|
|
|
Dec. 31,
2007
|
|
|
Dec. 31,
2006
|
|
|
Dec. 31,
2005
|
|
|
Dec. 31,
2004
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Operating Performance
|
Net asset value, beginning of period
|
|
$
|
17.38
|
|
|
$
|
64.78
|
|
|
$
|
42.65
|
|
|
$
|
34.07
|
|
|
$
|
28.47
|
|
|
$
|
23.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
(0.02
|
)2
|
|
|
(0.07
|
)2
|
|
|
(0.14
|
)2
|
|
|
(0.14
|
)2
|
|
|
0.04
|
2
|
|
|
0.08
|
2
|
Net realized and unrealized gain (loss) on investments, foreign
currency holdings,
and translation of other assets and
liabilities denominated in foreign currency
|
|
|
8.72
|
|
|
|
(40.28
|
)
|
|
|
31.82
|
|
|
|
13.83
|
|
|
|
11.35
|
|
|
|
6.14
|
|
Income tax (expense) reversal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.56
|
3
|
|
|
(0.80
|
)4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations after income
taxes
|
|
|
8.70
|
|
|
|
(40.35
|
)
|
|
|
31.68
|
|
|
|
14.25
|
|
|
|
10.59
|
|
|
|
6.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: dividends and distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
(0.13
|
)
|
|
|
(0.14
|
)
|
|
|
(0.06
|
)
|
|
|
(0.01
|
)
|
Short term capital gains
|
|
|
|
|
|
|
(0.52
|
)
|
|
|
(0.82
|
)
|
|
|
(0.14
|
)
|
|
|
(0.51
|
)
|
|
|
|
|
Long term capital gains
|
|
|
|
|
|
|
(6.34
|
)
|
|
|
(8.66
|
)
|
|
|
(4.84
|
)
|
|
|
(3.89
|
)
|
|
|
(1.51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions
|
|
|
|
|
|
|
(7.12
|
)
|
|
|
(9.61
|
)
|
|
|
(5.12
|
)
|
|
|
(4.46
|
)
|
|
|
(1.52
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-dilutive (dilutive) effect of Share
Repurchase Program
|
|
|
(0.01
|
)
|
|
|
0.07
|
|
|
|
0.06
|
|
|
|
|
5
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
Anti-dilutive effect of Tender Offer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of Rights Offer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.55
|
)
|
|
|
(0.52
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital share transactions
|
|
|
(0.01
|
)
|
|
|
0.07
|
|
|
|
0.06
|
|
|
|
(0.55
|
)
|
|
|
(0.53
|
)
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
$
|
26.07
|
|
|
$
|
17.38
|
|
|
$
|
64.78
|
|
|
$
|
42.65
|
|
|
$
|
34.07
|
|
|
$
|
28.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share market value, end of period
|
|
$
|
31.11
|
|
|
$
|
18.30
|
|
|
$
|
62.26
|
|
|
$
|
45.90
|
|
|
$
|
39.73
|
|
|
$
|
29.63
|
|
Total Investment
Return Based on:
|
Market
Value1
|
|
|
70.00
|
%
|
|
|
(57.63
|
)%
|
|
|
59.57
|
%
|
|
|
29.05
|
%
|
|
|
49.32
|
%
|
|
|
23.51
|
%
|
Ratios/Supplemental
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
|
$
|
1,003,130
|
|
|
$
|
671,087
|
|
|
$
|
2,754,124
|
|
|
$
|
1,913,341
|
|
|
$
|
1,083,714
|
|
|
$
|
644,672
|
|
Ratios of expenses after income taxes to
average net assets
|
|
|
1.37
|
%6
|
|
|
1.28
|
%
|
|
|
1.21
|
%
|
|
|
0.00
|
%
|
|
|
4.13
|
%
|
|
|
1.64
|
%
|
Ratios of expenses before income taxes to
average net assets
|
|
|
1.37
|
%6
|
|
|
1.28
|
%
|
|
|
1.21
|
%
|
|
|
1.41
|
%
|
|
|
1.49
|
%
|
|
|
1.64
|
%
|
Ratios of net investment income (loss) to
average net assets
|
|
|
(0.19
|
)%6
|
|
|
(0.17
|
)%
|
|
|
(0.28
|
)%
|
|
|
(0.34
|
)%
|
|
|
0.12
|
%
|
|
|
0.33
|
%
|
Portfolio turnover
|
|
|
30.32
|
%
|
|
|
49.41
|
%
|
|
|
29.39
|
%
|
|
|
35.02
|
%
|
|
|
50.28
|
%
|
|
|
35.90
|
%
|
16
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
Financial Highlights (concluded)
For
a Share Outstanding throughout Each Year
|
|
|
1 |
|
Total investment return is
calculated assuming a purchase of common stock at the market
price on the first day and a sale at the market price on the
last day of each period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Funds dividend
reinvestment plan. Total investment return does not reflect
brokerage commissions or sales charges and is not annualized.
Past performance is not a guarantee of future results.
|
2 |
|
Based on average shares
outstanding.
|
3 |
|
A reversal of $20,551,036 was made
in 2006 to the prior years tax provision described below
(see Note B).
|
4 |
|
A provision of $25,507,350 was
made for U.S. federal income tax purposes for the fiscal
year ended December 31, 2005. This provision was made as,
at that time, it was unclear whether the Fund qualified as a
regulated investment company (a RIC) under
Subchapter M of the Internal Revenue Code for the taxable
year ended December 31, 2004 (see Note B).
|
5 |
|
Less than $0.01 per share.
|
6 |
|
Annualized.
|
17
See accompanying notes to financial
statements.
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
NOTE A:
ORGANIZATION
The India Fund, Inc. (the Fund) was incorporated in
Maryland on December 27, 1993, and commenced operations on
February 23, 1994. The Fund operates through a branch in
the Republic of Mauritius. The Fund is registered under the
Investment Company Act of 1940, as amended (the 1940
Act), as a
non-diversified
closed-end management investment company. The Funds
investment objective is
long-term
capital appreciation by investing primarily in Indian equity
securities.
NOTE B:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in conformity
with generally accepted accounting principles in the United
States of America (GAAP), which are consistently
followed by the Fund in the preparation of its financial
statements.
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases
and decreases in net assets from operations during the reported
period. Actual results could differ from those estimates and
those differences could be material.
Significant
accounting policies are as follows:
Portfolio Valuation. Investments are stated at value
in the accompanying financial statements. All securities for
which market quotations are readily available are valued at:
|
|
|
|
(i)
|
the last sales price prior to the time of determination, if
there was a sale on the date of determination,
|
|
|
(ii)
|
at the mean between the last current bid and asked prices, if
there was no sales price on such date and bid and asked
quotations are available, or
|
|
|
(iii)
|
at the last available closing price if no bid or asked price is
available on such date.
|
Securities that are traded
over-the-counter
are valued, if bid and asked quotations are available, at the
mean between the current bid and asked prices. Securities for
which sales prices and bid and asked quotations are not
available on the date of determination or for which the spread
between the bid and asked prices is considered excessive may be
valued at the most recently available prices or quotations under
policies adopted by the Board of Directors. Investments in
short-term debt securities having a maturity of 60 days or
less are generally valued at amortized cost which approximates
market value. Securities for which market values are not readily
ascertainable are carried at fair value as determined in good
faith by or under the supervision of the Board of Directors. The
net asset value per share of the Fund is calculated weekly and
at the end of each month.
18
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
Investment Transactions and Investment
Income. Investment transactions are accounted for on
the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial
reporting and income tax reporting purposes. Interest income is
recorded on the accrual basis; dividend income is recorded on
the ex-dividend date or, using reasonable diligence, when known.
The collectibility of income receivable from Indian securities
is evaluated periodically, and any resulting allowances for
uncollectible amounts are reflected currently in the
determination of investment income.
Tax Status. No provision is made for
U.S. federal income or excise taxes for 2008 as it is the
Funds intention to continue to qualify as a regulated
investment company (a RIC) under Subchapter M
of the Internal Revenue Code of 1986, as amended (the
Code) and to make the requisite distributions to its
shareholders that will be sufficient to relieve it from all or
substantially all federal income and excise taxes.
For the year ended December 31, 2005, a provision of
$25,507,350 was made for U.S. federal income tax purposes
as, at that time, it was unclear whether the Fund qualified as a
RIC under Subchapter M of the Code for the taxable year ended
December 31, 2004. In order to preserve the Funds
status as a RIC under Subchapter M of the Code for the taxable
year ended December 31, 2004, on April 20, 2006 the
Fund distributed a deficiency dividend to shareholders in the
amount of $1.07 per share, of which $0.95 per share
was designated as a Capital Gain Dividend. Under the deficiency
dividend procedure, the maximum amount that the Fund will be
obligated to pay to the Internal Revenue Service in interest and
penalties is approximately $4,956,314. Accordingly, a reversal
of $20,551,036 was made in 2006 to the prior years tax
provision.
Income and capital gain distributions are determined in
accordance with U.S. federal income tax regulations, which
may differ from GAAP.
The tax character of distributions paid during the year ended
December 31, 2008 were as follows:
|
|
|
|
|
Ordinary income
|
|
$
|
29,742,396
|
|
Long term capital gains
|
|
|
243,621,434
|
|
|
|
|
|
|
Total
|
|
$
|
273,363,830
|
|
|
|
|
|
|
At December 31, 2008, the Fund had no tax basis
undistributed income or gains.
Under federal tax law, capital losses realized after
October 31 may be deferred and treated as occurring on the
first day of the following year. For the year ended
December 31, 2008, the Fund will defer post-October capital
losses of $19,263,104 to the year ended December 31, 2009.
The Fund files U.S. federal income tax returns and returns
in various foreign jurisdictions in which it invests. While the
statute of limitations remains open to examine the Funds
U.S. federal income tax returns filed for the fiscal years
2005 to 2008, no examinations are in progress or anticipated at
this time. The Fund is not aware of any tax positions for which
it is reasonably possible that the total amounts of unrecognized
tax benefits will significantly change in the next twelve months.
19
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
Foreign Currency Translation. The books and records
of the Fund are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the
following basis:
|
|
|
|
(i)
|
value of investment securities, assets and liabilities at the
prevailing rates of exchange on the valuation date; and
|
|
|
|
|
(ii)
|
purchases and sales of investment securities and investment
income at the relevant rates of exchange prevailing on the
respective dates of such transactions.
|
The Fund generally does not isolate the effect of fluctuations
in foreign exchange rates from the effect of fluctuations in the
market prices of securities. However, the Fund does isolate the
effects of fluctuations in foreign currency rates when
determining the gain or loss upon the sale of foreign currency
denominated debt obligations pursuant to U.S. federal
income tax regulations; such amounts are categorized as foreign
currency gains or losses for federal income tax purposes. The
Fund reports certain realized foreign exchange gains and losses
as components of realized gains and losses for financial
reporting purposes, whereas such amounts are treated as ordinary
income for U.S. federal income tax reporting purposes.
Distribution of Income and Gains. The Fund intends
to distribute annually to shareholders substantially all of its
net investment income, including foreign currency gains, and to
distribute annually any net realized gains after the utilization
of available capital loss carryovers. An additional distribution
may be made to the extent necessary to avoid payment of a 4%
U.S. federal excise tax.
Distributions to shareholders are recorded on the ex-dividend
date. The amount of dividends and distributions from net
investment income and net realized gains are determined in
accordance with federal income tax regulations, which may differ
from GAAP. These book/tax differences are either
considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are
reclassified at the end of each fiscal year with the capital
accounts based on their U.S. federal tax-basis treatment;
temporary differences do not require reclassification. Dividends
and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not
for tax purposes are reported as dividends in excess of net
investment income and net realized capital gains. To the extent
they exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of additional
paid-in capital.
The following permanent difference is primarily attributable to
net operating losses written off, foreign currency gains
(losses), and investments in Passive Foreign Investment
Companies and has been reclassified
20
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
to the accounts in the chart below as of December 31, 2008.
Net assets were not affected by this reclassification.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed
|
|
|
Accumulated
|
|
Paid-in
Capital
|
|
|
Net Investment
Loss
|
|
|
Net Realized
Loss
|
|
|
($
|
22,490,099
|
)
|
|
$
|
14,906,210
|
|
|
$
|
7,583,889
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE C: MANAGEMENT,
INVESTMENT ADVISORY, ADMINISTRATIVE SERVICES AND
DIRECTORS
Blackstone Asia Advisors L.L.C. (Blackstone
Advisors), an affiliate of The Blackstone Group L.P.
(Blackstone), serves as the Funds Investment
Manager under the terms of a management agreement dated
March 16, 2006 (the Management Agreement).
Blackstone Fund Services India Private Limited (Blackstone
India), an affiliate of Blackstone, serves as the
Funds Country Adviser under the terms of a country
advisory agreement dated March 16, 2006 (the Country
Advisory Agreement). Pursuant to the Management Agreement,
Blackstone Advisors supervises the Funds investment
program and is responsible on a
day-to-day
basis for investing the Funds portfolio in accordance with
its investment objective and policies. Pursuant to the Country
Advisory Agreement, Blackstone India provides statistical and
factual information and research regarding economic and
political factors and investment opportunities in India to
Blackstone Advisors. For its services, Blackstone Advisors
receives monthly fees at an annual rate of: (i) 1.10% for
the first $500,000,000 of the Funds average weekly net
assets; (ii) 0.90% for the next $500,000,000 of the
Funds average weekly net assets; (iii) 0.85% for the
next $500,000,000 of the Funds average weekly net assets;
and (iv) 0.75% of the Funds average weekly net assets
in excess of $1,500,000,000. Blackstone India receives from
Blackstone Advisors a monthly fee at an annual rate of 0.10% of
the Funds average weekly net assets. For the six months
ended June 30, 2009, the Fund paid a total of $3,810,307 in
management fees to Blackstone Advisors.
Blackstone Advisors also serves as the Funds Administrator
pursuant to an administration agreement dated January 1,
2006. Blackstone Advisors provides certain administrative
services to the Fund. For its services, Blackstone Advisors
receives a fee that is computed monthly at an annual rate of:
(i) 0.20% of the value of the Funds average monthly
net assets for the first $1,500,000,000 of the Funds
average monthly net assets and (ii) 0.15% of the value of
the Funds average monthly net assets in excess of
$1,500,000,000 of the Funds average monthly net assets.
For the six months ended June 30, 2009, the Fund paid a
total of $736,867 in administrative fees to Blackstone Advisors.
Blackstone Advisors subcontracts certain of these services to
PNC Global Investment Servicing (U.S.) Inc. (formerly known as
PFPC Inc.).
In addition, Multiconsult Ltd. (the Mauritius
Administrator) provides certain administrative services
relating to the operation and maintenance of the Fund in
Mauritius. The Mauritius Administrator receives a monthly fee of
$1,500 and is reimbursed for certain additional expenses. For
the six months ended June 30, 2009, fees and expenses of
the Mauritius Administrator amounted to $7,192.
21
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
The Fund pays each of its directors who is not a director,
officer or employee of Blackstone Advisors, Blackstone India or
any affiliate thereof (each Independent Director) an
annual fee of $20,000. The Fund pays an additional annual fee of
$10,000 to the Chairman of the Fund. The Fund also pays each
Independent Director a fee of (i) $2,000 for each in-person
meeting, including each in-person committee meeting;
(ii) $4,000 for traveling to Mauritius to attend an
in-person meeting; (iii) $1,000 for each telephonic meeting
of thirty minutes or less; and (iv) $1,500 for each
telephonic meeting lasting over thirty minutes. In addition, the
Fund reimburses all directors for travel and
out-of-pocket
expenses incurred in connection with Board of Directors
meetings. For the six months ended June 30, 2009, the Fund
paid $91,000 in Directors fees.
NOTE D: PORTFOLIO
ACTIVITY
Purchases and sales of securities, other than short-term
obligations, aggregated $226,553,313 and $246,248,173,
respectively, for the six months ended June 30, 2009.
NOTE E: FOREIGN
INCOME TAX
The Fund conducts its investment activities in India as a tax
resident of Mauritius and expects to obtain benefits under the
double taxation treaty between Mauritius and India (the
tax treaty or treaty). To obtain
benefits under the tax treaty, the Fund must meet certain tests
and conditions, including the establishment of Mauritius tax
residence and related requirements. The Fund has obtained a
certificate from the Mauritian authorities that it is a resident
of Mauritius under the tax treaty between Mauritius and India.
Under current regulations, a fund which is a tax resident in
Mauritius under the treaty, but has no branch or permanent
establishment in India, will not be subject to capital gains tax
in India on the sale of securities or to tax on dividends paid
by Indian companies. The Fund is subject to and accrues Indian
withholding tax on interest earned on Indian securities at the
rate of 21.115%.
The Fund will, in any year that it has taxable income for
Mauritius tax purposes, pay tax on its net income for Mauritius
tax purposes at a rate of 15%. The Fund is not taxed on
long-term capital gains for Mauritius tax purposes.
The Fund continues to: (i) comply with the requirements of
the tax treaty between India and Mauritius; (ii) be a tax
resident of Mauritius; and (iii) maintain that its central
management and control resides in Mauritius, and therefore
management believes that the Fund will be able to obtain the
benefits of the tax treaty between India and Mauritius.
Accordingly, no provision for Indian income taxes has been made
in accompanying financial statements of the Fund for taxes
related to capital gains or dividends.
The foregoing is based upon current interpretation and practice
and is subject to future changes in Indian or Mauritian tax laws
and in the treaty between India and Mauritius.
22
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
NOTE F: SEMI-ANNUAL
REPURCHASE OFFERS
In February 2003, the Board of Directors approved, subject to
stockholder approval, a fundamental policy whereby the Fund
would adopt an interval fund structure pursuant to
Rule 23c-3
under the 1940 Act. Stockholders of the Fund approved the policy
on April 30, 2003. As an interval fund, the Fund makes
semi-annual repurchase offers at net asset value (less a 2%
repurchase fee) to all Fund stockholders. The percentage of
outstanding shares that the Fund can repurchase in each offer is
established by the Funds Board of Directors shortly before
the commencement of each semi-annual offer and is between 5% and
25% of the Funds then-outstanding shares.
During the six months ended June 30, 2009, the results of
the semi-annual repurchase offer was as follows:
|
|
|
|
|
Repurchase Offer
#12
|
|
|
|
Commencement Date
|
|
February 20, 2009
|
|
|
|
Expiration Date
|
|
March 13, 2009
|
|
|
|
Pricing Date
|
|
March 20, 2009
|
|
|
|
% of Issued and Outstanding Shares of Common Stock
|
|
5%
|
|
|
|
Shares Validly Tendered
|
|
160,011.1776
|
|
|
|
Final Pro-ration Odd Lot Shares
|
|
no proration
|
|
|
|
Final Pro-ration Non-Odd Lot Shares
|
|
no proration
|
|
|
|
% of Non-Odd Lot Shares Accepted
|
|
no proration
|
|
|
|
Shares Accepted for Tender
|
|
160,011.1776
|
|
|
|
Net Asset Value per share as of Pricing Date ($)
|
|
15.41
|
|
|
|
Repurchase Fee per Share ($)
|
|
0.3082
|
|
|
|
Repurchase Offer Price ($)
|
|
15.1018
|
|
|
|
Repurchase Fee ($)
|
|
49,315
|
|
|
|
Expenses ($)
|
|
241,973
|
|
|
|
Total Cost ($)
|
|
2,658,430
|
|
|
|
23
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
During the year ended December 31, 2008, the results of the
semi-annual repurchase offers were as follows:
|
|
|
|
|
|
|
Repurchase Offer
#10
|
|
Repurchase Offer
#11
|
|
|
|
|
|
Commencement Date
|
|
February 22, 2008
|
|
August 22, 2008
|
|
|
|
|
|
Expiration Date
|
|
March 14, 2008
|
|
September 12, 2008
|
|
|
|
|
|
Pricing Date
|
|
March 24, 2008
|
|
September 19, 2008
|
|
|
|
|
|
% of Issued and Outstanding Shares of Common Stock
|
|
5%
|
|
5%
|
|
|
|
|
|
Shares Validly Tendered
|
|
4,071,660.2142
|
|
2,481,315.0000
|
|
|
|
|
|
Final Pro-ration Odd Lot Shares
|
|
53,998.2142
|
|
202,199.0271
|
|
|
|
|
|
Final Pro-ration Non-Odd Lot Shares
|
|
2,071,839.7858
|
|
1,817,347.9726
|
|
|
|
|
|
% of Non-Odd Lot Shares Accepted
|
|
51.5683%
|
|
79.7392%
|
|
|
|
|
|
Shares Accepted for Tender
|
|
2,125,838.0000
|
|
2,019,547.0000
|
|
|
|
|
|
Net Asset Value per share as of Pricing Date ($)
|
|
44.92
|
|
36.64
|
|
|
|
|
|
Repurchase Fee per Share ($)
|
|
0.8984
|
|
0.7328
|
|
|
|
|
|
Repurchase Offer Price ($)
|
|
44.0216
|
|
35.9072
|
|
|
|
|
|
Repurchase Fee ($)
|
|
1,909,853
|
|
1,479,924
|
|
|
|
|
|
Expenses ($)
|
|
281,419
|
|
252,385
|
|
|
|
|
|
Total Cost ($)
|
|
93,864,209
|
|
72,768,663
|
|
|
|
|
|
24
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
During the year ended December 31, 2007, the results of the
semi-annual repurchase offers were as follows:
|
|
|
|
|
|
|
Repurchase
Offer #8
|
|
Repurchase
Offer #9
|
|
|
|
|
|
Commencement Date
|
|
February 23, 2007
|
|
August 24, 2007
|
|
|
|
|
|
Expiration Date
|
|
March 16, 2007
|
|
September 14, 2007
|
|
|
|
|
|
Pricing Date
|
|
March 23, 2007
|
|
September 21, 2007
|
|
|
|
|
|
% of Issued and Outstanding Shares of Common Stock
|
|
5%
|
|
5%
|
|
|
|
|
|
Shares Validly Tendered
|
|
209,659.0000
|
|
7,375,410.0000
|
|
|
|
|
|
Final Pro-ration Odd Lot Shares
|
|
no proration
|
|
113,785.27
|
|
|
|
|
|
Final Pro-ration Non-Odd Lot Shares
|
|
no proration
|
|
2,123,939.734
|
|
|
|
|
|
% of Non-Odd Lot Shares Accepted
|
|
no proration
|
|
29.28000%
|
|
|
|
|
|
Shares Accepted for Tender
|
|
209,659.0000
|
|
2,237,725.0000
|
|
|
|
|
|
Net Asset Value per share as of Pricing Date ($)
|
|
41.30
|
|
57.58
|
|
|
|
|
|
Repurchase Fee per Share ($)
|
|
0.8260
|
|
1.1515
|
|
|
|
|
|
Repurchase Offer Price ($)
|
|
40.4740
|
|
56.4285
|
|
|
|
|
|
Repurchase Fee ($)
|
|
173,178
|
|
2,576,740
|
|
|
|
|
|
Expenses ($)
|
|
51,039
|
|
84,123
|
|
|
|
|
|
Total Cost ($)
|
|
8,536,777
|
|
126,355,588
|
|
|
|
|
|
25
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
NOTE G: 2005
RIGHTS OFFER
On December 17, 2004, the Fund commenced a rights offering
and issued to stockholders as of December 17, 2004 one
right for each share of common stock held. The rights were not
transferable and, consequently, were not listed on any exchange.
The rights entitled holders to subscribe for an aggregate of
7,546,991 shares of the Funds common stock. In
addition, the Fund had the option of issuing additional shares
in an amount up to 25% of the shares that were available in the
primary offering, or 1,886,747 shares, for an aggregate
total of 9,433,738 shares. The offer expired on
January 31, 2005. The Fund sold 9,433,738 shares at
the subscription price per share of $26.50 (representing 95% of
the Funds net asset value per share on the expiration date
of the offer). The total proceeds of the rights offering were
$249,994,057, and the Fund incurred costs of $572,549.
NOTE H: 2006
RIGHTS OFFER
On July 3, 2006, the Fund commenced a second rights
offering and issued to stockholders as of July 3, 2006 one
right for each share of common stock held. The rights were not
transferable and, consequently, were not listed on any exchange.
The rights entitled holders to subscribe for an aggregate of
10,565,220 shares of the Funds common stock. In addition,
the Fund had the option of issuing additional shares in an
amount up to 25% of the shares that were available in the
primary offering, or 2,641,305 shares, for an aggregate total of
13,206,525 shares. The offer expired on August 4, 2006. The
Fund sold 13,206,525 shares at the subscription price per
share of $34.00 (representing 95% of the Funds net asset
value per share on the expiration date of the offer). The total
proceeds of the rights offering were $449,021,850, and the Fund
incurred costs of $1,127,708.
NOTE I:
CONCENTRATION OF RISKS
At June 30, 2009, substantially all of the Funds net
assets were invested in Indian securities. The Indian securities
markets are among other things substantially smaller, less
developed, less liquid, subject to less regulation and more
volatile than the securities markets in the United States.
Consequently, and as further discussed above, acquisitions and
dispositions of securities by the Fund involve special risks and
considerations not present with respect to U.S. securities.
At June 30, 2009, the Fund had a concentration of its
investment in finance, industrial, and petroleum-related
industries. The values of such investments may be affected by
changes in such industry sectors.
Securities denominated in currencies other than
U.S. dollars are subject to changes in value due to
fluctuations in foreign exchange. Foreign security and currency
transactions involve certain considerations and risks not
typically associated with those of domestic origin as a result
of, among other factors, the level of governmental supervision
and regulation of foreign securities markets and the
possibilities of political or economic instability, the fact
that foreign securities markets may be smaller and less
developed and the fact
26
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(continued)
that securities, tax and corporate laws may have only recently
developed or are in developing stages, and laws may not exist to
cover all contingencies or to protect investors adequately.
In the normal course of business, the Fund may enter into
contracts that contain a variety of representations and
warranties and which may provide for general indemnifications.
The Funds maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made
against the Fund that have not yet occurred. However, based on
experience, management expects the risk of loss to be remote.
NOTE J: FAIR
VALUE MEASUREMENTS
In September 2006, Statement of Financial Accounting Standards
No. 157, Fair Value Measurements
(SFAS 157), was issued and is effective for
fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. SFAS 157 defines fair
value, establishes a framework for measuring fair value and
expands disclosures about fair value measurements. The Fund
adopted SFAS 157 effective with the March 31, 2008
quarterly reporting on portfolio holdings. The three levels of
the fair value hierarchy under SFAS 157 are described below:
|
|
|
|
|
Level 1 price quotations in active
markets/exchanges for identical securities
|
|
|
|
Level 2 other significant observable
inputs (including, but not limited to: quoted prices for similar
securities, interest rates, credit risk, etc.)
|
|
|
|
Level 3 significant unobservable inputs
(including the Funds own assumptions used in determining
the fair value of investments)
|
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities. A summary of the inputs used to value the
Funds net assets as of June 30, 2009, is as follows:
|
|
|
|
|
|
|
Investments in
|
|
Valuation
Inputs
|
|
Securities*
|
|
|
Level 1 Quoted Prices
|
|
$
|
981,385,049
|
|
Level 2 Other Significant Observable Inputs
|
|
|
0
|
|
Level 3 Significant Unobservable Inputs
|
|
|
4,976,516
|
|
|
|
|
|
|
Total
|
|
$
|
986,361,565
|
|
|
|
|
|
|
|
|
|
*
|
|
See Schedule of Investments for
identification of securities by security type and industry
classification.
|
27
THE
INDIA FUND, INC.
June 30,
2009
(Unaudited)
Notes to Financial Statements
(concluded)
The following is a reconciliation of Level 3 investments
for which significant unobservable inputs were used in
determining fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in
Equity Securities
|
|
|
|
Publishing
|
|
|
Retail
Stores
|
|
|
Shipbuilding
|
|
|
Balance, as of December 31, 2008
|
|
$
|
104,680
|
|
|
$
|
199,887
|
|
|
$
|
2,978,017
|
|
Realized gain (loss)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Change in unrealized appreciation (depreciation)
|
|
|
64,405
|
|
|
|
(104,605
|
)
|
|
|
1,829,414
|
|
Net purchases (sales)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Net transfers in/out of Level 3
|
|
|
0
|
|
|
|
(95,282
|
)
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, as of June 30, 2009
|
|
$
|
169,085
|
|
|
$
|
0
|
|
|
$
|
4,807,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE K:
RECENT ACCOUNTING PRONOUNCEMENTS
In March 2008, the Financial Accounting Standards Board (FASB)
released Statement of Financial Accounting Standards
No. 161 Disclosures about Derivative Instruments and
Hedging Activities (SFAS 161).
SFAS 161 requires qualitative disclosures about objectives
and strategies for using derivatives, quantitative disclosures
about fair value amounts of gains and losses on derivative
instruments and disclosures about credit-risk-related contingent
features in derivative agreements. The application of
SFAS 161 is required for fiscal years and interim periods
beginning after November 15, 2008. As of June 30,
2009, management has evaluated the impact of SFAS 161 on
financial statement disclosures and has determined that no
additional disclosure is required.
NOTE L:
SUBSEQUENT EVENT: 2009 RIGHTS OFFER
On July 20, 2009, the Fund commenced a rights offering. The
offer expired on August 14, 2009. Pursuant to the offer,
holders of the Funds common stock on July 20, 2009,
were able to subscribe for an aggregate of
16,032,758 shares at the subscription price per share of
$26.42 (representing 95% of the Funds net asset value per
share on the expiration date of the offer). The Fund previously
conducted rights offerings in 2005 and 2006 (see
Notes G & H).
28
THE
INDIA FUND, INC.
Results of Annual Meeting of
Stockholders
(Unaudited)
ANNUAL
MEETING
The Fund held its Annual Meeting of Stockholders on
April 24, 2009. At the meeting, stockholders elected the
nominees proposed for election to the Funds Board of
Directors. The following table provides information concerning
the matters voted on at the meeting:
I.
Election of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Votes
|
|
|
Non-Voting
|
|
|
Total Voting
and
|
|
Nominee
|
|
Votes
For
|
|
|
Withheld
|
|
|
Shares
|
|
|
Non-Voting
Shares
|
|
|
Lawrence K. Becker
|
|
|
27,517,438
|
|
|
|
1,668,079
|
|
|
|
0
|
|
|
|
29,185,517
|
|
Robert L. Friedman
|
|
|
27,728,532
|
|
|
|
1,456,985
|
|
|
|
0
|
|
|
|
29,185,517
|
|
Jeswald W. Salacuse
|
|
|
27,427,942
|
|
|
|
1,757,575
|
|
|
|
0
|
|
|
|
29,185,517
|
|
At June 30, 2009, in addition to Lawrence K. Becker, Robert
L. Friedman and Jeswald W. Salacuse, the other directors of the
Fund were as follows:
Leslie H. Gelb
J. Marc Hardy
Stephane R. F. Henry
Prakash A. Melwani
Luis F. Rubio
The Funds Board of Directors is divided into three
classes: Class I, Class II, and Class III. The
terms of office of the Class I, Class II, and
Class III Directors expire at the Annual Meeting of
Stockholders in the year 2012, year 2011 and year 2010,
respectively, or thereafter in each case when their respective
successors are duly elected and qualified. The Funds
executive officers are chosen each year at the first meeting of
the Funds Board of Directors following the Annual Meeting
of Stockholders to hold office until the meeting of the Board
following the next Annual Meeting of Stockholders and until
their successors are duly elected and qualified.
29
THE
INDIA FUND, INC.
Dividends and Distributions
DIVIDEND
REINVESTMENT AND CASH PURCHASE PLAN
The Fund intends to distribute annually to shareholders
substantially all of its net investment income, and to
distribute any net realized capital gains at least annually. Net
investment income for this purpose is income other than net
realized long and short-term capital gains net of expenses.
Pursuant to the Dividend Reinvestment and Cash Purchase Plan
(the Plan), shareholders whose shares of Common
Stock are registered in their own names will be deemed to have
elected to have all distributions automatically reinvested by
the Plan Agent in Fund shares pursuant to the Plan, unless such
shareholders elect to receive distributions in cash.
Shareholders who elect to receive distributions in cash will
receive all distributions in cash paid by check in dollars
mailed directly to the shareholder by the dividend paying agent.
In the case of shareholders such as banks, brokers or nominees
that hold shares for others who are beneficial owners, the Plan
Agent will administer the Plan on the basis of the number of
shares certified from time to time by the shareholders as
representing the total amount registered in such
shareholders names and held for the account of beneficial
owners that have not elected to receive distributions in cash.
Investors that own shares registered in the name of a bank,
broker or other nominee should consult with such nominee as to
participation in the Plan through such nominee, and may be
required to have their shares registered in their own names in
order to participate in the Plan.
The Plan Agent serves as agent for the shareholders in
administering the Plan. If the directors of the Fund declare an
income dividend or a capital gains distribution payable either
in the Funds Common Stock or in cash, nonparticipants in
the Plan will receive cash and participants in the Plan will
receive Common Stock, to be issued by the Fund or purchased by
the Plan Agent in the open market, as provided below. If the
market price per share on the valuation date equals or exceeds
net asset value per share on that date, the Fund will issue new
shares to participants at net asset value; provided, however,
that if the net asset value is less than 95% of the market price
on valuation date, then such shares will be issued at 95% of the
market price. The valuation date will be the dividend or
distribution payment date or, if that date is not a
New York Stock Exchange trading day, the next preceding
trading day. If net asset value exceeds the market price of Fund
shares at such time, or if the Fund should declare an income
dividend or capital gains distribution payable only in cash, the
Plan Agent will, as agent for the participants, buy Fund shares
in the open market, on the New York Stock Exchange or elsewhere,
for the participants accounts on, or shortly after, the
payment date. If, before the Plan Agent has completed its
purchases, the market price exceeds the net asset value of a
Fund share, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Funds
shares, resulting in the acquisition of fewer shares than if the
distribution had been paid in shares issued by the Fund on the
dividend payment date.
Because of the foregoing difficulty with respect to open market
purchases, the Plan provides that if the Plan Agent is unable to
invest the full dividend amount in open-market purchases during
the purchase period or if the market discount shifts to a market
premium during the purchase period, the Plan Agent will cease
30
THE
INDIA FUND, INC.
DIVIDEND
REINVESTMENT AND CASH PURCHASE PLAN (continued)
making open-market purchases and shareholders will receive the
uninvested portion of the dividend amount in newly issued shares
at the close of business on the last purchase date.
Participants have the option of making additional cash payments
to the Plan Agent, annually, in any amount from $100 to $3,000,
for investment in the Funds Common Stock. The Plan Agent
will use all such funds received from participants to purchase
Fund shares in the open market on or about February 15.
Any voluntary cash payment received more than 30 days prior
to this date will be returned by the Plan Agent, and interest
will not be paid on any uninvested cash payment. To avoid
unnecessary cash accumulations, and also to allow ample time for
receipt and processing by the Plan Agent, it is suggested that
participants send in voluntary cash payments to be received by
the Plan Agent approximately ten days before an applicable
purchase date specified above. A participant may withdraw a
voluntary cash payment by written notice, if the notice is
received by the Plan Agent not less than 48 hours before
such payment is to be invested.
The Plan Agent maintains all shareholder accounts in the Plan
and furnishes written confirmations of all transactions in an
account, including information needed by shareholders for
personal and tax records. Shares in the account of each Plan
participant will be held by the Plan Agent in the name of the
participant, and each shareholders proxy will include
those shares purchased pursuant to the Plan.
There is no charge to participants for reinvesting dividends or
capital gains distributions or voluntary cash payments. The Plan
Agents fees for the reinvestment of dividends and capital
gains distributions and voluntary cash payments will be paid by
the Fund. There will be no brokerage charges with respect to
shares issued directly by the Fund as a result of dividends or
capital gains distributions payable either in stock or in cash.
However, each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agents
open-market purchases in connection with the reinvestment of
dividends and capital gains distributions and voluntary cash
payments made by the participant. Brokerage charges for
purchasing small amounts of stock for individual accounts
through the Plan are expected to be less than the usual
brokerage charges for such transactions, because the Plan Agent
will be purchasing stock for all participants in blocks and
prorating the lower commissions thus attainable.
31
THE
INDIA FUND, INC.
DIVIDEND
REINVESTMENT AND CASH PURCHASE PLAN (continued)
The receipt of dividends and distributions under the Plan will
not relieve participants of any income tax that may be payable
on such dividends or distributions.
Experience under the Plan may indicate that changes in the Plan
are desirable. Accordingly, the Fund and the Plan Agent reserve
the right to terminate the Plan as applied to any voluntary cash
payments made and any dividend or distribution paid subsequent
to notice of the termination sent to members of the Plan at
least 30 days before the record date for such dividend or
distribution. The Plan also may be amended by the Fund or the
Plan Agent, but (except when necessary or appropriate to comply
with applicable law, rules or policies of a regulatory
authority) only by at least 30 days written notice to
participants in the Plan. All correspondence concerning the Plan
should be directed to the Plan Agent at
P.O. Box 43027, Providence, RI 02940-3027.
We are providing this information as required by the Internal
Revenue Code. The amounts shown may differ from those elsewhere
in this report because of differences between tax and financial
reporting requirements.
For taxable non-corporate shareholders, 29.61% of the
Funds ordinary income distributions paid during the year
ended December 31, 2008, represent qualified dividend
income subject to the 15% rate category.
32
THE
INDIA FUND, INC.
PRIVACY
POLICY OF
BLACKSTONE
ASIA ADVISORS L.L.C.
YOUR PRIVACY IS
PROTECTED
An important part of our commitment to you is our respect for
your right to privacy. Protecting all the information we are
either required to gather or which accumulates in the course of
doing business with you is a cornerstone of our relationship
with you. While the range of products and services we offer
continues to expand, and the technology we use continues to
change, our commitment to maintaining standards and procedures
with respect to security remains constant.
COLLECTION OF
INFORMATION
The primary reason that we collect and maintain information is
to more effectively administer our customer relationship with
you. It allows us to identify, improve and develop products and
services that we believe could be of benefit. It also permits us
to provide efficient, accurate and responsive service, to help
protect you from unauthorized use of your information and to
comply with regulatory and other legal requirements. These
include those related to institutional risk control and the
resolution of disputes or inquiries.
Various sources are used to collect information about you,
including (i) information you provide to us at the time you
establish a relationship, (ii) information provided in
applications, forms or instruction letters completed by you,
(iii) information about your transactions with us or our
affiliated companies,
and/or
(iv) information we receive through an outside source, such
as a bank or credit bureau. In order to maintain the integrity
of client information, we have procedures in place to update
such information, as well as to delete it when appropriate. We
encourage you to communicate such changes whenever necessary.
DISCLOSURE OF
INFORMATION
We do not disclose any nonpublic, personal information (such as
your name, address or tax identification number) about our
clients or former clients to anyone, except as permitted or
required by law. We maintain physical, electronic and procedural
safeguards to protect such information, and limit access to such
information to those employees who require it in order to
provide products or services to you.
The law permits us to share client information with companies
that are affiliated with us which provide financial, credit,
insurance, trust, legal, accounting and administrative services
to us or our clients. This allows us to enhance our relationship
with you by providing a broader range of products to better meet
your needs and to protect the assets you may hold with us by
preserving the safety and soundness of our firm.
33
THE
INDIA FUND, INC.
PRIVACY POLICY
OF
BLACKSTONE
ASIA ADVISORS L.L.C.
Finally, we are also permitted to disclose nonpublic, personal
information to unaffiliated outside parties who assist us with
processing, marketing or servicing a financial product,
transaction or service requested by you, administering benefits
or claims relating to such a transaction, product or service,
and/or
providing confirmations, statements, valuations or other records
or information produced on our behalf.
It may be necessary, under anti-money laundering or other laws,
to disclose information about you in order to accept your
subscription. Information about you may also be released if you
so direct, or if we or an affiliate are compelled to do so by
law, or in connection with any government or self-regulatory
organization request or investigation.
We are committed to upholding this Privacy Policy. We will
notify you on an annual basis of our policies and practices in
this regard and at any time that there is a material change that
would require your consent.
34
THE
INDIA FUND, INC.
Investment
Manager:
Blackstone Asia Advisors L.L.C.,
an affiliate of The Blackstone Group L.P.
Administrator:
Blackstone Asia Advisors L.L.C.
Sub-Administrator:
PNC Global Investment Servicing (U.S.) Inc.
Transfer
Agent:
PNC Global Investment Servicing (U.S.) Inc.
Custodian:
Deutsche Bank AG
The Fund has adopted the Investment Managers proxy voting
policies and procedures to govern the voting of proxies relating
to its voting securities. You may obtain a copy of these proxy
voting procedures, without charge, by calling
1-866-800-8933
or by visiting the Securities and Exchange Commissions
website at www.sec.gov.
Information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period
ended June 30 is available without charge, upon request, by
calling the Funds toll-free number at 1-866-800-8933
or by visiting the Securities and Exchange Commissions
website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with
the Securities and Exchange Commission for the first and third
quarters of its fiscal year on
Form N-Q.
You may obtain a copy of these filings by visiting the
Securities and Exchange Commissions website at www.sec.gov
or its Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be
obtained by calling
1-800-SEC-0330.
This report is sent to shareholders of the Fund for their
information. It is not a Prospectus, circular or representation
intended for use in the purchase or sale of shares of the Fund
or of any securities mentioned in this report.
Asia
Advisors L.L.C.
The India Fund, Inc.
Semi-Annual Report
June 30, 2009
The India Fund, Inc.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) |
|
Schedule of Investments in securities of unaffiliated issuers as of the close of the
reporting period is included as part of the report to shareholders filed under Item 1 of this
form. |
|
(b) |
|
Not applicable. |
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers
identified in response to paragraph (a)(1) of this Item in the registrants most recently filed
annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Total Number of |
|
(d) Maximum Number (or |
|
|
|
|
|
|
|
|
|
|
Shares (or Units) |
|
Approximate Dollar Value) of |
|
|
(a) Total Number of |
|
(b) Average |
|
Purchased as Part of |
|
Shares (or Units) that May Yet Be |
|
|
Shares (or Units) |
|
Price Paid per |
|
Publicly Announced |
|
Purchased Under the Plans or |
Period |
|
Purchased |
|
Share (or Unit) |
|
Plans or Programs |
|
Programs |
01/01/2009 to
01/31/2009 |
|
None
|
|
None
|
|
None
|
|
None
|
02/01/2009 to
02/27/2009 |
|
None
|
|
None
|
|
None
|
|
None
|
03/01/2009 to
03/31/2009 |
|
|
160,011 |
|
|
$ |
15.1018 |
|
|
|
160,011 |
(1) |
|
None
|
04/01/2009 to
04/30/2009 |
|
None
|
|
None
|
|
None
|
|
None
|
05/01/2009 to
05/31/2009 |
|
None
|
|
None
|
|
None
|
|
None
|
06/01/2009 to
06/30/2009 |
|
None
|
|
None
|
|
None
|
|
None
|
Total |
|
|
160,011 |
|
|
$ |
15.1018 |
|
|
|
160,011 |
|
|
None
|
|
|
|
(1) |
|
These shares were repurchased in connection with the Funds regular, semi-annual
repurchase offer announced on February 20, 2009 that expired on March 13, 2009. In connection with
this repurchase offer, the Fund offered to repurchase up to 1,931,932 shares of its common stock,
an amount equal to 5% of its outstanding shares of common stock, for cash at a price approximately
equal to the Funds net asset value as of March 20, 2009. |
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend
nominees to the registrants board of directors, where those changes were implemented after the
registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation
S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR
240.14a-101)), or this Item.
Item 11. Controls and Procedures.
|
(a) |
|
The registrants principal executive and principal financial officers, or persons
performing similar functions, have concluded that the registrants disclosure controls and
procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940
Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date
of this report, based on their evaluation of these controls and procedures required by Rule
30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
|
|
(b) |
|
There were no changes in the registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the
registrants second fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting. |
Item 12. Exhibits.
|
(a)(1) |
|
Not applicable. |
|
|
(a)(2) |
|
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act of 2002 are attached hereto. |
|
|
(a)(3) |
|
Not applicable. |
|
|
(b) |
|
Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the
Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
|
|
(registrant)
|
|
The India Fund, Inc. |
|
|
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Prakash A. Melwani
|
|
|
|
|
Prakash A. Melwani, President |
|
|
|
|
(principal executive officer) |
|
|
|
|
|
|
|
Date August 26, 2009 |
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Prakash A. Melwani
|
|
|
|
|
Prakash A. Melwani, President |
|
|
|
|
(principal executive officer) |
|
|
|
|
|
|
|
Date August 26, 2009 |
|
|
|
|
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Joseph M. Malangoni
|
|
|
|
|
Joseph M. Malangoni, Treasurer and Vice President |
|
|
|
|
(principal financial officer) |
|
|
|
|
|
|
|
Date August 26, 2009 |
|
|
|
|
|
|
|
* |
|
Print the name and title of each signing officer under his or her signature. |