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
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The India Fund, Inc.
--------------------------------------------------
(Exact name of registrant as specified in charter)
200 Park Avenue
New York, NY 10166
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(Address of principal executive offices) (Zip code)
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
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(Name and address of agent for service)
registrant's telephone number, including area code: 212-667-4939
------------
Date of fiscal year end: December 31, 2005
-----------------
Date of reporting period: June 30, 2005
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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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
Advantage Advisers, Inc.
The India Fund, Inc.
Semi-Annual Report
June 30, 2005
The India Fund, Inc.
The India Fund, Inc.
August 26, 2005
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, 2005.
The Fund's net asset value ("NAV") closed at $30.20 on June 30, 2005,
representing an increase of 6.11% from the Fund's NAV of $28.47 on December 31,
2004. The Fund underperformed its benchmark, the IFC Investable Index, which
gained 7.9% during the same period.*
The Indian stock market finished the first six months of 2005 as one of the best
performing markets in Asia. Highlights of the first half of the year included
the annual budget announcement by the government, which included an adjustment
to the personal tax rate that we believe will help sustain domestic consumption.
In addition, the increased infrastructure allocation underscores the
government's commitment to improving the country's infrastructure in an effort
to speed economic growth. Finally, the government also reiterated its focus on
maintaining price stability by forcing a freeze on fuel prices. The rise in
inflation has cooled to approximately 5.5%. Robust foreign institutional inflows
of over $4.5 billion for the first six months of 2005 and a record number of
foreign institutional investor registrations in the first six months of 2005
also contributed to the market's strength in the first six months of 2005.
Looking ahead, we believe that India will benefit from favorable conditions such
as high consumer confidence, favorable liquidity and strong economic
fundamentals as demonstrated by gross domestic product growth of 7% in the
quarter ended March 31, 2005. These factors, in addition to a growing middle
class, should continue to support domestic consumption.
1
THE INDIA FUND, INC.
Finally, as the Indian stock market continues to set new all-time highs, we
believe valuations may not be as compelling as they were during the past year.
Nevertheless, we strongly believe that the fundamental long-term outlook for
India remains positive.
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 call our toll-free number, 800-421-4777.
Sincerely,
/s/ Bryan McKigney
Bryan McKigney
Chairman, President and Director
* Please note that the benchmark is an unmanaged index. Investors cannot
directly invest in the index. The index does not reflect transaction costs or
manager fees.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. There is no guarantee that
the Fund's or any other investment technique will be effective under all market
conditions.
2
THE INDIA FUND, INC.
--------------------------------------------------------------------------------
FUNDAMENTAL PERIODIC REPURCHASE POLICY
The Fund has adopted the following fundamental policy regarding periodic
repurchases:
a) 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.
b) 14 days prior to the last Friday of the Fund's 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.
c) 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 Fund's first and third fiscal quarters, or the next business day if
such day is not a business day.
d) Offers may be suspended or postponed under certain circumstances, as
provided for in Rule 23c-3.
(For further details, see Note E to the Financial Statements.)
--------------------------------------------------------------------------------
3
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (UNAUDITED)
INDIA (100% OF HOLDINGS)
COMMON STOCKS (98.79% of holdings)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
CEMENT 1.25%
374,198 Associated Cement Companies Ltd ................ $ 3,254,797 $ 3,252,286
4,413,180 Gujarat Ambuja Cements Ltd ..................... 5,109,420 5,988,446
299,124 Ultra Tech Cement Ltd .......................... 1,692,990 2,424,707
------------ ------------
10,057,207 11,665,439
------------ ------------
CHEMICALS 0.41%
1,001,900 Tata Chemicals Ltd ............................. 3,681,521 3,805,515
------------ ------------
3,681,521 3,805,515
------------ ------------
COMPUTER HARDWARE 1.21%
422,490 HCL Infosystems Ltd ............................ 6,884,978 7,644,756
1,010,150 NIIT Technologies Ltd .......................... 3,277,414 3,610,334
------------ ------------
10,162,392 11,255,090
------------ ------------
COMPUTER SOFTWARE & PROGRAMMING 13.58%
954,360 Geodesic Information Systems Ltd ............... 451,906 3,353,869
265,550 I-Flex Solutions Ltd ........................... 3,858,718 4,797,367
1,494,171 Infosys Technologies Ltd ....................... 28,793,729 81,019,601
391,564 KPIT Cummins Infosystems Ltd ................... 1,414,167 3,242,020
649,000 Patni Computer Systems Ltd ..................... 5,343,570 5,179,462
1,369,146 Satyam Computer Services Ltd ................... 11,325,929 15,980,718
732,150 Wipro Ltd ...................................... 7,980,012 12,890,925
------------ ------------
59,168,031 126,463,962
------------ ------------
COMPUTER TRAINING 0.14%
248,100 NIIT Ltd ....................................... 819,788 1,268,745
------------ ------------
819,788 1,268,745
------------ ------------
CONSTRUCTION/BUILDING MATERIALS 0.60%
501,836 IVRCL Infrastructures and Projects Ltd ......... 4,870,632 5,616,224
------------ ------------
4,870,632 5,616,224
------------ ------------
CONSULTING SERVICES 0.57%
170,194 Tata Consultancy Services ...................... 5,182,661 5,291,750
------------ ------------
5,182,661 5,291,750
------------ ------------
4
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES 6.88%
833,000 Dabur India Ltd ................................ $ 2,121,668 $ 2,523,139
4,972,901 Hindustan Lever Ltd ............................ 18,977,665 18,711,283
1,128,145 ITC Ltd ........................................ 24,966,689 42,795,823
------------ ------------
46,066,022 64,030,245
------------ ------------
DIVERSIFIED INDUSTRIES 10.11%
506,532 Grasim Industries Ltd .......................... 4,671,404 12,336,524
368,200 HEG Ltd ........................................ 1,250,741 1,189,367
578,000 Lakshmi Overseas Industries Ltd ................ 2,200,103 4,432,707
5,063,793 Reliance Industries Ltd ........................ 48,645,875 74,757,330
351,897 Zen Technologies Ltd+ .......................... 1,368,719 1,440,609
------------ ------------
58,136,842 94,156,537
------------ ------------
ELECTRICITY 1.05%
2,439,200 National Thermal Power Corporation Ltd ......... 3,309,199 4,659,052
1,800,000 Neyveli Lignite Corporation Ltd ................ 3,064,003 3,065,547
144,300 Reliance Energy Ltd ............................ 2,018,862 2,097,129
------------ ------------
8,392,064 9,821,728
------------ ------------
ELECTRONICS & ELECTRICAL EQUIPMENT 6.43%
509,771 Bharat Electronics Ltd ......................... 6,162,068 8,206,399
1,838,062 Bharat Heavy Electricals Ltd ................... 15,637,909 36,566,781
501,392 Jyoti Structures Ltd ........................... 752,153 2,173,121
435,750 Salora International Ltd ....................... 1,838,988 1,039,266
169,502 Siemens India Ltd .............................. 3,859,253 7,588,801
296,353 Sterlite Industries (India) Ltd ................ 4,577,842 4,259,904
------------ ------------
32,828,213 59,834,272
------------ ------------
ENGINEERING 5.85%
263,049 ABB Ltd ........................................ 3,105,368 8,016,702
995,800 Bharat Earth Movers Ltd ........................ 6,810,087 15,012,578
269,095 Gammon India Ltd ............................... 549,349 1,634,808
458,004 Hindustan Construction Ltd ..................... 3,999,665 5,540,711
1,967,952 Jaiprakash Associates Ltd ...................... 6,426,534 8,260,148
285,636 Larsen & Toubro Ltd ............................ 3,770,538 7,449,332
43,218 Manugraph India Ltd ............................ 480,673 497,285
468,384 Thermax India Ltd .............................. 1,663,815 6,495,758
140,500 Walchandnagar Industries Ltd ................... 1,538,375 1,593,066
------------ ------------
28,344,404 54,500,388
------------ ------------
5
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
EXTRACTIVE INDUSTRIES 8.52%
621,205 Hindalco Industries Ltd ........................ $ 12,943,244 $ 17,156,002
2,495,941 Oil and Natural Gas Corporation Ltd ............ 43,944,218 58,595,487
269,750 Sesa Goa Ltd ................................... 4,527,871 3,602,043
------------ ------------
61,415,333 79,353,532
------------ ------------
FERTILIZERS 0.14%
440,560 Indo Gulf Fertilisers Ltd ...................... 539,287 1,307,089
------------ ------------
539,287 1,307,089
------------ ------------
FINANCE 16.57%
1,739,000 Centurion Bank Ltd ............................. 213,342 573,534
509,935 Corporation Bank ............................... 3,370,577 4,268,418
2,291,908 HDFC Bank Ltd .................................. 18,614,930 33,424,537
1,853,440 Housing Development Finance Corporation Ltd .... 18,082,073 37,680,503
1,949,171 ICICI Bank Ltd ................................. 6,093,927 18,897,724
435,403 Jammu and Kashmir Bank Ltd ..................... 3,244,720 3,693,115
738,800 LIC Housing Finance Ltd ........................ 3,982,435 3,519,835
389,300 Oriental Bank of Commerce ...................... 2,987,427 2,244,653
255,996 Punjab National Bank Ltd ....................... 2,289,873 2,236,727
1,759,133 State Bank of India ............................ 7,688,997 27,574,450
45,550 State Bank of India GDR ........................ 525,435 1,817,445
1,221,550 UTI Bank Ltd ................................... 6,320,228 6,943,562
500,000 UTI Bank Ltd 144A GDR .......................... 2,955,000 2,765,000
6,450,386 Vijaya Bank Ltd ................................ 9,478,322 8,686,065
------------ ------------
85,847,286 154,325,568
------------ ------------
FOOD 0.89%
978,500 Dhampur Sugar Mills Ltd+ ....................... 2,980,108 2,905,344
567,751 Ruchi Soya Industries Ltd ...................... 2,979,692 3,212,207
1,063,229 Satnam Overseas Ltd ............................ 2,300,953 2,137,217
------------ ------------
8,260,753 8,254,768
------------ ------------
HOTELS & LEISURE 0.71%
797,157 Hotel Leelaventure Ltd ......................... 755,185 3,411,018
224,544 Indian Hotels Company Ltd ...................... 3,108,622 3,223,818
------------ ------------
3,863,807 6,634,836
------------ ------------
6
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
HOUSEHOLD APPLIANCES 0.22%
385,893 Voltas Ltd ..................................... $ 1,055,393 $ 2,037,299
------------ ------------
1,055,393 2,037,299
------------ ------------
MEDIA 0.18%
397,900 Balaji Telefilms Ltd ........................... 858,690 983,768
452,500 Pritish Nandy Communications Ltd ............... 708,507 709,243
------------ ------------
1,567,197 1,693,011
------------ ------------
PETROLEUM RELATED 2.43%
3 Bharat Petroleum Corporation Ltd ............... 22 25
807,578 Hindustan Petroleum Corporation Ltd ............ 5,085,122 5,692,793
1,439,640 Indian Oil Corporation Ltd ..................... 6,877,154 14,005,697
61,300 Niko Resources Ltd ADR ......................... 1,034,064 2,881,591
------------ ------------
12,996,362 22,580,106
------------ ------------
PHARMACEUTICALS 4.32%
437,000 Cadila Healthcare Ltd .......................... 5,205,120 4,768,003
101,719 Dishman Pharmaceuticals Ltd .................... 1,091,523 1,489,290
1,442,500 FDC Ltd ........................................ 2,003,630 1,405,011
168,527 Lupin Ltd ...................................... 2,519,545 2,694,184
1,689,780 Matrix Laboratories Ltd ........................ 4,330,898 7,520,065
422,463 Ranbaxy Laboratories Ltd ....................... 8,954,405 10,276,403
637,512 Sun Pharmaceutical Industries Ltd .............. 5,795,498 8,372,110
415,800 Wockhardt Ltd .................................. 1,850,926 3,669,330
------------ ------------
31,751,545 40,194,396
------------ ------------
RETAIL STORES 0.55%
82,500 Rajesh Exports Ltd ............................. 1,305,728 1,315,295
929,400 SB&T International Ltd ......................... 1,851,444 1,816,904
132,757 Trent Ltd ...................................... 467,324 2,009,980
------------ ------------
3,624,496 5,142,179
------------ ------------
SHIPPING 0.39%
1,002,000 Bharati Shipyard Ltd+ .......................... 3,513,202 3,589,271
------------ ------------
3,513,202 3,589,271
------------ ------------
7
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
STEEL 3.31%
584,383 Jindal Steel & Power Ltd ....................... $ 14,281,403 $ 11,631,211
154,700 Maharashtra Seamless Ltd ....................... 761,283 1,323,027
2,288,091 Tata Iron and Steel Company Ltd ................ 14,832,388 17,897,418
------------ ------------
29,875,074 30,851,656
------------ ------------
TELECOMMUNICATIONS 4.61%
7,666,260 Bharti Tele-Ventures Ltd+ ...................... 25,990,505 42,818,566
45,000 Mahanagar Telephone Nigam Ltd .................. 144,531 119,848
------------ ------------
26,135,036 42,938,414
------------ ------------
TELECOMMUNICATIONS EQUIPMENT 0.00%
1 Shyam Telecom Ltd+ ............................. 14 2
------------ ------------
14 2
------------ ------------
TEXTILES-COTTON 1.05%
1,689,500 Arvind Mills Ltd+ .............................. 4,772,810 4,862,947
449,300 Mahavir Spinning Mills Ltd ..................... 2,119,975 4,091,544
326,767 Welspun India Ltd+ ............................. 694,976 812,032
------------ ------------
7,587,761 9,766,523
------------ ------------
TRANSPORTATION 1.23%
541,426 Container Corporation of India Ltd ............. 5,224,685 11,456,116
------------ ------------
5,224,685 11,456,116
------------ ------------
VEHICLE COMPONENTS 0.93%
2,215,800 Amtek Auto Ltd ................................. 6,030,372 8,658,335
------------ ------------
6,030,372 8,658,335
------------ ------------
VEHICLES 4.66%
217,300 Bajaj Auto Ltd ................................. 5,827,004 6,864,341
942,737 Hero Honda Motors Ltd .......................... 10,113,485 12,467,198
1,124,135 Mahindra & Mahindra Ltd ........................ 12,283,775 14,442,084
869,725 Tata Motors Ltd ................................ 6,869,606 8,502,222
112,200 Tata Motors Ltd ADR ............................ 1,001,160 1,086,096
------------ ------------
36,095,030 43,361,941
------------ ------------
TOTAL COMMON STOCKS ............................ 593,092,410 919,854,937
------------ ------------
8
THE INDIA FUND, INC.
JUNE 30, 2005
Schedule of Investments (concluded) (UNAUDITED)
PREFERRED STOCK (0.00% of holdings)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
--------------------------------------------------------------------------------------------------------
ENGINEERING 0.00%
1,248,400 Thermax India Ltd Preference Shares+ ........... $ 0 $ 29,573
------------ ------------
0 29,573
------------ ------------
TOTAL PREFERRED STOCK .......................... 0 29,573
------------ ------------
SHORT-TERM INVESTMENTS (1.21% of holdings)
3,163,170 Birla Cash Plus+ ............................... 753,281 773,820
3,269,998 Deutsche Insta Cash Plus Fund+ ................. 770,096 791,102
13,510,558 HDFC Liquid Fund+ .............................. 4,050,256 4,142,565
3,284,788 Prudential ICICI Liquid Plan+ .................. 1,223,391 1,256,922
17,680,218 Standard Chartered Grindlays Cash Fund
Growth Option+ ............................... 4,207,480 4,322,301
------------ ------------
TOTAL SHORT-TERM INVESTMENTS ................... 11,004,504 11,286,710
------------ ------------
TOTAL INDIA .................................... 604,096,914 931,171,220
------------ ------------
TOTAL INVESTMENTS* .......................100.00% $604,096,914 $931,171,220
============ ============
--------------
FOOTNOTES AND ABBREVIATIONS
ADR -- American Depository Receipts
GDR -- Global Depository Receipts
+ Non income producing.
* As of June 30, 2005, the aggregate cost for federal income tax purposes was $605,952,632.
The aggregate gross unrealized appreciation (depreciation) for all securities was as follows:
Excess of value over tax cost $334,404,359
Excess of tax cost over value (9,185,771)
------------
$325,218,588
============
See accompanying notes to financial statements.
9
THE INDIA FUND, INC.
JUNE 30, 2005
Statement of Assets and Liabilities (UNAUDITED)
ASSETS
Investments, at value (Cost $604,096,914) ................................................. $931,171,220
Cash (including Indian Rupees of $15,087,524, with a cost of $15,075,556) .................. 31,174,202
Receivables:
Dividends and reclaims net of excess taxes withheld ................................... 3,809,991
Interest .............................................................................. 10,582
Securities sold ....................................................................... 4,432,363
Prepaid expenses ........................................................................... 83,440
------------
TOTAL ASSETS ............................................................. 970,681,798
------------
LIABILITIES
Payable for securities purchased ........................................................... 3,812,051
Due to Investment Manager .................................................................. 803,912
Due to Administrator ....................................................................... 157,446
Accrued Custodian fees ..................................................................... 110,455
Accrued expenses ........................................................................... 264,884
------------
TOTAL LIABILITIES ........................................................ 5,148,748
------------
NET ASSETS ............................................................... $965,533,050
============
NET ASSET VALUE PER SHARE ($965,533,050 / 31,974,537
SHARES ISSUED AND OUTSTANDING) ........................................... $ 30.20
============
NET ASSETS CONSIST OF:
Capital stock, $0.001 par value; 34,007,133 shares issued 100,000,000 shares authorized) ... $ 43,451
Paid-in capital ............................................................................ 710,883,632
Cost of 11,476,270 shares repurchased ...................................................... (169,173,835)
Undistributed net investment income ........................................................ 1,181,296
Accumulated net realized gain on investments ............................................... 95,507,192
Net unrealized appreciation in value of investments, foreign currency holdings and on
translation of other assets and liabilities denominated in foreign currency .............. 327,091,314
------------
$965,533,050
============
See accompanying notes to financial statements.
10
THE INDIA FUND, INC.
FOR THE SIX MONTHS ENDED
JUNE 30, 2005
Statement of Operations (UNAUDITED)
INVESTMENT INCOME
Dividends (net of taxes withheld of $7,463) ........................................ $ 5,889,272
Interest ........................................................................... 125,419
-----------
TOTAL INVESTMENT INCOME .......................................... 6,014,691
-----------
EXPENSES
Management fees ........................................................ 4,382,861
Administration fees .................................................... 841,521
Custodian fees ......................................................... 682,233
Insurance .............................................................. 94,849
Legal fees ............................................................. 75,369
Audit fees and tax fees ................................................ 52,361
Directors' fees ........................................................ 47,380
Printing ............................................................... 37,192
Transfer agent fees .................................................... 18,795
NYSE fees .............................................................. 10,625
ICI fees ............................................................... 8,847
Miscellaneous expenses ................................................. 17,133
---------
TOTAL EXPENSES ................................................... 6,269,166
-----------
NET INVESTMENT LOSS .............................................. (254,475)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY
HOLDINGS AND TRANSLATION OF OTHER ASSETS AND LIABILITIES DENOMINATED IN
FOREIGN CURRENCY
Net realized gain (loss) on:
Security transactions ......................................................... 65,648,658
Foreign currency related transactions ......................................... (478,710)
-----------
65,169,948
Net change in unrealized appreciation in value of investments, foreign currency
holdings and translation of other assets and liabilities denominated in
foreign currency ................................................................ 9,322,416
-----------
Net realized and unrealized gain on investments, foreign currency holdings and
translation of other assets and liabilities denominated in foreign currency ..... 74,492,364
-----------
Net increase in net assets resulting from operations ............................... $74,237,889
===========
See accompanying notes to financial statements.
11
THE INDIA FUND, INC.
Statements of Changes in Net Assets
FOR THE SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, 2005 ENDED
(UNAUDITED) DECEMBER 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income (loss) ......................................................... $ (254,475) $ 1,805,278
Net realized gain on investments and foreign currency
related transactions ............................................................ 65,169,948 108,999,515
Net change in unrealized appreciation in value of investments,
foreign currency holdings and translation of other
assets and liabilities denominated in foreign currency .......................... 9,322,416 29,701,635
------------ ------------
Net increase in net assets resulting from operations ................................. 74,237,889 140,506,428
------------ ------------
DISTRIBUTION TO SHAREHOLDERS
Net investment income ($0.00 and $0.01 per share respectively) ....................... -- (226,410)
Long term capital gains ($0.00 and $1.51 per share respectively) ..................... -- (34,187,872)
------------ ------------
Increase (decrease) in net assets resulting from distributions ....................... -- (34,414,282)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Reinvestments
(9,936 shares at $26.49 per share) .............................................. 263,210 --
Execise of Rights
(9,433,738 shares at $26.50 per share, net of expenses of $572,549) ............. 249,421,508 --
Shares repurchased under Repurchase Offer
(110,112 and 794,290 shares, respectively)
(net of repurchase fee of $59,901 and $368,126 respectively)
including expenses of $126,781 and $193,142, respectively ....................... (3,061,709) (18,231,335)
------------ ------------
Net increase (decrease) in net assets resulting from capital share
transactions .................................................................... 246,623,009 (18,231,335)
------------ ------------
Total increase in net assets ......................................................... 320,860,898 87,860,811
------------ ------------
NET ASSETS
Beginning of period .................................................................. 644,672,152 556,811,341
------------ ------------
End of period (including undistributed net investment income
of $1,181,296 and $1,435,771, respectively) ..................................... $965,533,050 $644,672,152
============ ============
See accompanying notes to financial statements.
12
THE INDIA FUND, INC.
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX
MONTHS ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
JUNE 30, 2005 ENDED ENDED ENDED ENDED
(UNAUDITED) DEC. 31, 2004 DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2001
------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ........ $ 28.47 $ 23.76 $ 12.72 $ 11.93 $ 16.18
-------- -------- -------- -------- --------
Net investment income (loss) ................ (0.01) 2 0.08 2 0.11 2 0.09 0.07
Net realized and unrealized gain (loss)
on investments, foreign currency
holdings, and translation of other
assets and liabilities denominated
in foreign currency ...................... 2.02 6.14 11.00 0.76 (4.29)
-------- -------- -------- -------- --------
Net increase (decrease) from
investment operations .................... 2.01 6.22 11.11 0.85 (4.22)
-------- -------- -------- -------- --------
Less: dividends and distributions
Dividends from:
Net investment income .................. -- (0.01) (0.13) (0.09) (0.07)
Long term capital gains ................ -- (1.51) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions ........... -- (1.52) (0.13) (0.09) (0.07)
-------- -------- -------- -------- --------
Capital share transactions
Anti-dilutive effect of Share
Repurchase Program ....................... -- 0.01 0.06 0.01 0.04
Anti-dilutive effect of Tender Offer ........ -- -- -- 0.02 --
Dilutive effect of Rights Offer ............. (0.28) -- -- -- --
-------- -------- -------- -------- --------
Total capital share transactions ............ (0.28) 0.01 0.06 0.03 0.04
-------- -------- -------- -------- --------
Net asset value, end of period .............. $ 30.20 $ 28.47 $ 23.76 $ 12.72 $ 11.93
======== ======== ======== ======== ========
Per share market value, end of period ....... $29.8500 $29.6300 $25.2000 $10.5900 $ 9.5000
TOTAL INVESTMENT RETURN BASED
ON MARKET VALUE 1 ........................ 0.74% 23.51% 139.04% 12.36% (20.69)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000s) ......... $965,533 $644,672 $556,811 $350,838 $366,491
Ratios of expenses to average
net assets ............................... 1.51% 3 1.64% 1.76% 1.73% 1.70%
Ratios of net investment income
(loss) to average net assets ............. (0.06)% 3 0.33% 0.72% 0.65% 0.57%
Portfolio turnover .......................... 20.19% 35.90% 33.89% 39.36% 16.06%
FOR THE YEAR
ENDED
DEC. 31, 2000
------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ........ $ 23.21
--------
Net investment income (loss) ................ (0.16)
Net realized and unrealized gain (loss)
on investments, foreign currency
holdings, and translation of other
assets and liabilities denominated
in foreign currency ...................... (7.27)
--------
Net increase (decrease) from
investment operations .................... (7.43)
--------
Less: dividends and distributions
Dividends from:
Net investment income .................. --
Long term capital gains ................ --
--------
Total dividends and distributions ........... --
--------
Capital share transactions
Anti-dilutive effect of Share
Repurchase Program ....................... 0.40
Anti-dilutive effect of Tender Offer ........ --
Dilutive effect of Rights Offer ............. --
--------
Total capital share transactions ............ 0.40
--------
Net asset value, end of period .............. $ 16.18
========
Per share market value, end of period ....... $12.0625
TOTAL INVESTMENT RETURN BASED
ON MARKET VALUE 1 ........................ (27.99)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000s) ......... $504,769
Ratios of expenses to average
net assets ............................... 1.59%
Ratios of net investment income
(loss) to average net assets ............. (0.75)%
Portfolio turnover .......................... 19.24%
See accompanying notes to financial statements.
13
THE INDIA FUND, INC.
Financial Highlights (concluded)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
1 Total investment return is calculated assuming a purchase of common stock at
the current market price on the first day and a sale at the current 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 Fund's 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 Annualized.
See accompanying notes to financial statements.
14
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (UNAUDITED)
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 closed-end,
non-diversified management investment company. The Fund's investment objective
is long-term capital appreciation by investing primarily in Indian equity
securities.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America ("GAAP") requires management
to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those
estimates.
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, and
(iii) at the bid price if there was no sales price on such date and only
bid quotations are available.
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 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 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.
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.
15
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
TAX STATUS. No provision is made for U.S. federal income or excise taxes as it
is the Fund's intention to continue to qualify as a regulated investment company
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.
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
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 effect 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 federal income tax reporting purposes.
Securities denominated in currencies other than U.S. dollars are subject to
changes in value due to fluctuations in foreign exchange rates. Foreign security
and currency transactions may 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 possibility of political or economic instability, and
the fact that foreign securities markets may be smaller and have less developed
and less reliable settlement and share registration procedures.
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% 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
16
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States of America. 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 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.
NOTE B: MANAGEMENT, INVESTMENT ADVISORY, ADMINISTRATIVE SERVICES
AND DIRECTORS
Advantage Advisers, Inc. ("Advantage"), a subsidiary of Oppenheimer Asset
Management Inc. ("OAM") and an affiliate of Oppenheimer &Co. Inc.
("Oppenheimer"), serves as the Fund's Investment Manager (the "Investment
Manager") under the terms of a management agreement dated June 5, 2003 (the
"Management Agreement"). Imperial Investment Advisors Private Limited
("Imperial"), an Indian company and subsidiary of Oppenheimer and Advantage
India, Inc., serves as the Fund's Country Adviser (the "Country Adviser") under
the terms of an amended and restated advisory agreement dated October 26, 2004
(the "Country Advisory Agreement"). Pursuant to the Management Agreement, the
Investment Manager supervises the Fund's investment program and is responsible
on a day-to-day basis for investing the Fund's portfolio in accordance with its
investment objective and policies. Pursuant to the Country Advisory Agreement,
the Country Adviser provides statistical and factual information and research
regarding economic, political factors and investment opportunities in India to
the Investment Manager. For their services, the Investment Manager receives
monthly fees at an annual rate of: (i) 1.10% of the Fund's average weekly net
assets up to and including $600,000,000 and (ii) 0.95% of the Fund's average
weekly net assets in excess of $600,000,000. The Country Adviser receives from
the Investment Manager a monthly fee at an annual rate of 0.10% of the Fund's
average weekly net assets. For the six months ended June 30, 2005, fees earned
by the Investment Manager amounted to $4,382,861.
Oppenheimer, a registered investment adviser and an indirect wholly-owned
subsidiary of Oppenheimer Holdings Inc., serves as the Fund's Administrator (the
"Administrator") pursuant to an administration agreement dated June 4, 2003. The
Administrator provides certain administrative services to the Fund. For its
services, the Administrator receives a monthly fee at an annual rate of 0.20% of
the value of the Fund's average weekly net assets. For the six months ended June
30, 2005, these fees amounted to $841,521. The Administrator subcontracts
certain of these services to 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
17
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
Administrator receives a monthly fee of $1,500 and is reimbursed for certain
additional expenses. For the six months ended June 30, 2005, fees and expenses
of the Mauritius Administrator amounted to $13,194. Prior toJune 3, 2003, the
Fund's Administrator was CIBC World Markets Corp.
The Fund pays each of its directors who is not a director, officer or employee
of the Investment Manager, the Country Adviser or the Administrator or any
affiliate thereof an annual fee of $5,000 plus up to $700 for each Board of
Directors meeting attended. In addition, the Fund reimburses all directors for
travel and out-of-pocket expenses incurred in connection with Board of Directors
meetings.
NOTE C: PORTFOLIO ACTIVITY
Purchases and sales of securities, other than short-term obligations, aggregated
$389,826,315 and $189,403,420 respectively, for the six months ended June 30,
2005.
NOTE D: 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 20.91%.
The Fund will, in any year that it has taxable income for Mauritius tax
purposes, elect to pay tax on its net income for Mauritius tax purposes at any
rate between 0% and 35%.
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.
18
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
NOTE E: QUARTERLY 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 Fund's Board of Directors shortly
before the commencement of each semi-annual offer and is between 5% and 25% of
the Fund's then-outstanding shares.
During the six months ended June 30, 2005, the results of the semi-annual
repurchase offer were as follows:
---------------------
REPURCHASE OFFER #4
--------------------------------------------------------------------------------
Commencement Date February 23, 2005
--------------------------------------------------------------------------------
Expiration Date March 14, 2005
--------------------------------------------------------------------------------
Repurchase Offer Date March 28, 2005
--------------------------------------------------------------------------------
% of Issued and Outstanding Shares of Common Stock 5%
--------------------------------------------------------------------------------
Shares Validly Tendered 110,112.132
--------------------------------------------------------------------------------
Final Pro-ration Odd Lot Shares 0.00
--------------------------------------------------------------------------------
Final Pro-ration Non-Odd Lot Shares 0.000
--------------------------------------------------------------------------------
% of Non-Odd Lot Shares Accepted 0.00000%
--------------------------------------------------------------------------------
Shares Accepted for Tender 110,112.132
--------------------------------------------------------------------------------
Net Asset Value as of Repurchase Offer Date ($) 22.20
--------------------------------------------------------------------------------
Repurchase Fee per Share ($) 0.5440
--------------------------------------------------------------------------------
Repurchase Offer Price ($) 26.6540
--------------------------------------------------------------------------------
Repurchase Fee ($) 59,901
--------------------------------------------------------------------------------
Expenses ($) 126,781
--------------------------------------------------------------------------------
Total Cost ($) 3,061,709
--------------------------------------------------------------------------------
19
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
During the year ended December 31, 2004, the results of the semi-annual
repurchase offer were as follows:
------------------------------------------------------------------------------------------------------
REPURCHASE OFFER #2 REPURCHASE OFFER #3
------------------------------------------------------------------------------------------------------
Commencement Date February 20, 2004 August 20, 2004
------------------------------------------------------------------------------------------------------
Expiration Date March 12, 2004 September 10, 2004
------------------------------------------------------------------------------------------------------
Repurchase Offer Date March 19, 2004 September 17, 2004
------------------------------------------------------------------------------------------------------
% of Issued and Outstanding Shares of Common Stock 0.6% 2.8%
------------------------------------------------------------------------------------------------------
Shares Validly Tendered 132,437.366 661,852.704
------------------------------------------------------------------------------------------------------
Final Pro-ration Odd Lot Shares 607.12 989.70
------------------------------------------------------------------------------------------------------
Final Pro-ration Non-Odd Lot Shares 131,830.166 652,393.000
------------------------------------------------------------------------------------------------------
% of Non-Odd Lot Shares Accepted 11.12700% 1.78600%
------------------------------------------------------------------------------------------------------
Shares Accepted for Tender 132,437.366 661,852.704
------------------------------------------------------------------------------------------------------
Net Asset Value as of Repurchase Offer Date ($) 22.74 23.26
------------------------------------------------------------------------------------------------------
Repurchase Fee per Share ($) 0.4548 0.4652
------------------------------------------------------------------------------------------------------
Repurchase Offer Price ($) 22.2852 22.7948
------------------------------------------------------------------------------------------------------
Repurchase Fee ($) 60,232 307,894
------------------------------------------------------------------------------------------------------
Expenses ($) 127,333 65,809
------------------------------------------------------------------------------------------------------
Total Cost ($) 3,078,726 15,152,609
------------------------------------------------------------------------------------------------------
During the year ended December 31, 2003, the results of the semi-annual
repurchase offer were as follows:
--------------------------------------------------------------------------------
REPURCHASE OFFER #1
--------------------------------------------------------------------------------
Commencement Date August 22, 2003
--------------------------------------------------------------------------------
Expiration Date September 12, 2003
--------------------------------------------------------------------------------
Repurchase Offer Date September 26, 2003
--------------------------------------------------------------------------------
% of Issued and Outstanding Shares of Common Stock 15%
--------------------------------------------------------------------------------
Shares Validly Tendered 17,530,127.5345
--------------------------------------------------------------------------------
Final Pro-ration Odd Lot Shares 139,149
--------------------------------------------------------------------------------
Final Pro-ration Non-Odd Lot Shares 3,996,486
--------------------------------------------------------------------------------
% of Non-Odd Lot Shares Accepted 22.97983%
--------------------------------------------------------------------------------
Shares Accepted for Tender 4,135,635
--------------------------------------------------------------------------------
Net Asset Value as of Repurchase Offer Date ($) 17.64
--------------------------------------------------------------------------------
Repurchase Fee per Share ($) 0.3528
--------------------------------------------------------------------------------
Repurchase Offer Price ($) 17.2872
--------------------------------------------------------------------------------
Repurchase Fee ($) 1,459,052
--------------------------------------------------------------------------------
Expenses ($) 103,667
--------------------------------------------------------------------------------
Total Cost ($) 71,597,216
--------------------------------------------------------------------------------
20
THE INDIA FUND, INC.
JUNE 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
NOTE F: 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 Fund's 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 Fund's 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 to date of $572,549.
NOTE G: CONCENTRATION OF RISKS
At June 30, 2005, substantially all of the Fund's 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, 2005, the Fund has a concentration of
its investment in computer, finance, and diversified 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
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 Fund's 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.
21
THE INDIA FUND, INC.
Continuation of the Management Agreements
The Investment Company Act of 1940, as amended, requires that the Fund's Board
of Directors, including a majority of its Directors who are not affiliated with
the Fund's investment adviser (the "Independent Directors") voting separately,
approve the Fund's advisory agreements and the related fees for their initial
terms and on an annual basis thereafter at a meeting called for the purpose of
voting on the agreements' approval or continuation. At a meeting held in person
on May 17, 2005, the Board discussed both the Fund's Amended and Restated
Management Agreement (the "Management Agreement"), dated February 25, 2005,
between the Fund and Advantage Advisers, Inc. ("Advantage") as well as the
Country Advisory Agreement (the "Country Advisory Agreement," and together with
the Management Agreement, the "Agreements"), dated October 26, 2004, between
Advantage and Imperial Investment Advisors Private Limited ("Imperial"). At the
meeting, the Board, including the Independent Directors, unanimously agreed to
renew each of the Agreements for a six-month term, or through December 4, 2005.
In making this decision, the Independent Directors were represented by
independent counsel who assisted them in their deliberations prior to and during
the Board meeting and in the meeting's executive session.
In considering whether to continue the Fund's Agreements, the Independent
Directors had undertaken certain actions in order to gather information,
including the formation of a joint committee of the Boards of various
Oppenheimer & Co. ("Oppenheimer") funds and participation in joint meetings of
various Oppenheimer funds to identify issues and discuss developments and to
provide Oppenheimer with an opportunity to respond to the Boards' inquiries. In
addition, during the past several months the joint committee and the Independent
Directors conducted interviews of certain key personnel of Oppenheimer and the
Fund's service providers, including the Fund's portfolio manager, during which
the Independent Directors discussed, among other things, the portfolio manager's
employment arrangements with Oppenheimer. The Independent Director also
previously raised a number of issues with the Chairman of Oppenheimer, the
ultimate parent of Advantage and Imperial, including certain matters relating to
the Fund and Oppenheimer's business strategy with respect to the Fund, all
matters to which the Chairman of Oppenheimer responded.
In addition, the Board reviewed materials provided by Advantage, which included,
among other things, Oppenheimer's business, personnel and operations, services,
compensation by the Fund and compliance activities, as well as information
regarding the Fund's investment performance and expenses compared to another
fund with investment objectives and policies similar to those of the Fund, as
well as compared to the benchmark index and an analysis of the profitability of
the investment advisory relationship to Advantage and Imperial. Fund counsel
also provided a memorandum outlining the legal duties of the Board, and
information regarding compliance matters relating to Advantage and Imperial were
also provided to the Board by Advantage.
The Board considered factors relating to both the selection of Advantage and
Imperial and the approval of the fees when reviewing the Agreements. In
particular, the Board considered the following:
22
THE INDIA FUND, INC.
Continuation of the Management Agreements (continued)
(i) The qualifications of Advantage and Imperial, including the nature, extent
and quality of services to be provided and the investment performance of the
Fund, Advantage and Imperial: First, the Directors reviewed the services that
Advantage provides to the Fund, including, but not limited to, making the
day-to-day decisions for investing the Fund's assets in accordance with the
Fund's objectives and policies and investment restrictions, subject to the
supervision and direction of the Board. The Directors also listened to a report
by the portfolio manager detailing (i) information regarding Advantage's
management of the Fund's portfolio; (ii) the Fund's performance; and (iii) an
analysis of the advisory fees paid by the Fund. The Chairman of the Fund and the
portfolio manager discussed the Fund's performance (on an absolute and relative
basis), the expenses borne by the Fund, the nature and quality of the advisory
and administrative services rendered to the Fund by Advantage and Imperial and
certain expenses borne by Advantage in its management of the Fund and compared
the advisory fees paid by the Fund to those paid by the Fund's principal peer
fund. The Board also considered the fact that Advantage also makes available
research and statistical data to the Fund, as well as monitors the performance
of the Fund's outside service providers, including the Fund's administrator,
transfer agent and custodian. The Directors also reviewed the services Imperial
provides to the Fund, including, but not limited to, furnishing advice and
making recommendations to Advantage regarding the purchase and sale of
securities and also providing research and statistical data to Advantage.
In addition, the Directors considered the education, background and experience
of the personnel and management teams at Advantage and Imperial, and in
particular, the track record of the portfolio manager. Among other things, they
took into consideration the favorable history of the portfolio manager for the
Fund, finding that this has had, and would likely continue to have, a favorable
impact on the success of the Fund. The Directors also considered Advantage's and
Imperial's employee turnover, compensation and budget structure and their
ability to attract and retain quality and experienced personnel. They considered
the quality of the support provided by Oppenheimer and its affiliates to the
Fund. The Directors also considered both Advantage's and Imperial's investment
philosophy with respect to the Fund and the investment outlook for the Fund. The
Directors concluded that they were satisfied with the services that had been
provided to the Fund by Advantage and Imperial.
(ii) The reasonableness of the advisory fees: The Directors reviewed the past
investment performance of the Fund, Advantage and Imperial, as well as the past
investment performance of the Fund's principal peer. In particular, the
Directors focused on the analysis of the Fund's performance in the materials
provided by Advantage, noting that the Fund's performance was comparable with
that of its principal peer fund, and that the Fund outperformed its benchmark
over the last three years and since inception for both annualized and cumulative
returns. Further, the Fund's performance was strong over all periods in absolute
terms. The Directors recognized that past performance is not an indicator of
future performance, but concluded that Advantage and Imperial had the necessary
expertise to continue to manage the Fund in accordance with its investment
objectives and strategies.
23
THE INDIA FUND, INC.
Continuation of the Management Agreements (continued)
The Directors next considered the costs of the services provided by Advantage
and Imperial. As part of their analysis, the Directors gave substantial
consideration to the comparisons of fees and expense ratios of the Fund as
described in the materials provided by Advantage. Under the Management
Agreement, the Fund pays to Advantage a monthly fee computed at the annual rate
of: (i) 1.10% of the Fund's average weekly net assets up to and including
$600,000,000 and (ii) 0.95% of the Fund's average weekly net assets in excess of
$600,000,000. Under the Country Advisory Agreement, Advantage pays to Imperial a
monthly fee equal to an annual rate of 0.10% of the Fund's average weekly net
assets.
In reviewing the investment advisory fees, the Directors noted that the Fund's
fee was commensurate with that of its principal peer fund. The Directors noted
that the Fund's expense ratio was slightly higher than that of its peer fund.
The Directors also considered the other benefits to Advantage, Imperial and
their affiliates from the relationship with the Fund, including, among others,
the administration fees paid to Oppenheimer. Further, the Directors considered
the extent to which economies of scale would be realized as the Fund grows and
whether the fee levels reflect economies of scale for the benefit of the Fund's
shareholders, noting that in connection with the Fund's rights offering
completed in February, the advisory fee had been revised to include a break
point which the Directors believe appropriately reflects applicable economies of
scale.
(iii) The operating expenses of the Fund: The Directors reviewed the operating
expenses of the Fund, on an absolute basis and as compared to those of its
principal peer fund. The Directors noted that, as described in the materials
provided by Advantage, the annualized expense ratio had slightly decreased in
2004 as compared to 2003. The Directors also reviewed payments made by the Fund
to its affiliates, including Oppenheimer, for various services. The Directors
concluded that the expenses of the Fund were reasonable.
(iv) Portfolio transactions: The Directors considered the policies and practices
of the Fund, Advantage and Imperial in effecting portfolio transactions. The
Directors considered the Fund's general policies with respect to brokerages,
including payment levels, allocation policies among clients and use of soft
dollars, as described in the materials provided by Advantage, and discussed
whether the transactions were carried out competently and within the scope of
applicable governmental and Fund policy limitations. The Directors also
considered the Fund's transactions with affiliates, portfolio turnover rates,
the recapture of brokerage commissions and the consideration of research
services in placing portfolio transactions. The Directors took into
consideration other benefits to be derived by Advantage in connection with the
Management Agreement, noting particularly the research and related services,
within the meaning of Section 28(e) of the Securities Exchange Act of 1934, as
amended, that Advantage would be eligible to receive by allocating the Fund's
brokerage transactions.
(v) Advantage's and Imperial's management of other funds and other investments
and fees paid: The Directors also considered Advantage's and Imperial's
management of other funds and other investment products and the fees paid in
those instances, noting that Advantage managed one other registered
24
THE INDIA FUND, INC.
Continuation of the Management Agreements (continued)
fund which invested in Asia. The Directors compared both the services rendered
and the fees paid under the agreement to the other fund, and the Directors
determined that the services and fees were comparable to those being offered
under the other contract by Advantage. The Directors noted that Imperial did not
manage any other similar funds or accounts, and accordingly, a comparison was
not in that case possible.
(vi) The profitability of Advantage, Imperial and their affiliates with respect
to their relationship to the Fund: The Directors reviewed information regarding
the profitability to Advantage of its relationship with the Fund. The Board
considered the level of Advantage's and Imperial's profits and whether the
profits were reasonable for Advantage and Imperial. The profitability analysis
took into consideration fall out benefits from Advantage's and Imperial's
relationship with the Fund, including fees paid to Advantage and Imperial under
the Agreements and under the Administration Agreement. The Directors found that
the profits realized by Advantage and Imperial from their relationship with the
Fund were reasonable and consistent with fiduciary duties.
The Board also considered possible alternatives to the management and
sub-advisory arrangements from the standpoint of the Fund and its shareholders.
The Directors considered the relative advantages and disadvantages of retaining
another investment adviser (or advisers) or hiring internal management to
perform all or a part of the advisory, administrative or operational tasks that
Advantage, Imperial and Oppenheimer provide. In connection with their
examination of these alternatives, the Directors considered all of the factors
described above. The Directors further considered whether the Fund would have
the ability on its own to attract, retain and supervise highly qualified
personnel and obtain services at least equivalent to those provided by Advantage
and Imperial under the Agreements.
In considering whether to approve the continuation of the Agreements, the Board
did not identify nor was any single factor determinative to the decision of the
Board. The Board also separately considered the operational, administrative and
other services provided to the Fund by Oppenheimer under the Administration
Agreement between the Fund and Oppenheimer. The Independent Directors are
satisfied with the services currently provided by Advantage and Imperial to the
Fund and with the investment performance and reasonable expense levels
(including advisory fees) of the Fund as well as the general responsiveness of
Oppenheimer to the issues raised. On that basis, the Independent Directors
believe that the continuation of the Agreements is in the best interests of the
Fund and its shareholders. As the Independent Directors' primary interest is the
long-term stability of the Fund and in light of the fact that there is no
employment contract in place with the Fund's portfolio manager, the Directors
determined that it would be appropriate to continue the Agreements for a six
month period during which time Oppenheimer would endeavor to reach satisfactory
employment or other arrangements for the long-term stable portfolio management
of the Fund. The Independent Directors also determined to establish a
subcommittee to explore alternatives for the management of the Fund in the event
that Oppenheimer is not able to satisfy the Board as to its long term business
plan. At a subsequent meeting, although no formal action was taken by the
Independent Directors, the Independent Directors considered proposals from four
firms, including Oppenheimer, for the management of the Fund.
25
THE INDIA FUND, INC.
Results of Annual Meeting of Stockholders
The Fund held its Annual Meeting of Stockholders on April 21, 2005. At the
meeting, stockholders elected each of the nominees proposed for election to the
Fund's 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
------- --------- -------- ---------- -----------------
Leslie H. Gelb 25,077,862 482,951 6,523,837 32,084,650
Stephane R. F. Henry 23,828,846 1,731,967 6,523,837 32,084,650
Luis F. Rubio 25,081,070 479,742 6,523,837 32,084,650
At June 30, 2005, in addition to Leslie H. Gelb, Stephane R. F. Henry, and Luis
F. Rubio, the other directors of the fund were as follows:
Lawrence K. Becker
Jean Marc Hardy
Bryan McKigney
Jeswald W. Salacuse
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge
upon request by calling the Fund's toll free number at 1-800-421-4777 and at the
Securities and Exchange Commission website at http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent twelve month period ended June 30, 2005 is
available after August 30, 2005, without charge, upon request, by calling the
Fund's toll free number at 1-800-421-4777 and at the Securities and Exchange
Commission website at http://www.sec.gov.
The Fund's CEO has submitted to the NYSE the required annual certification and,
the Fund also has included the certifications of the Fund's CEO and CFO required
by Section 302 and Section 906 of the Sarbanes-Oxley Act in the Fund's Form
N-CSR filed with the SEC, for the period of this report.
--------------------------------------------------------------------------------
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, 100% of the Fund's income represents
qualified dividend income subject to the 15% rate category.
--------------------------------------------------------------------------------
26
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 Fund's 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 Fund's 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.
27
THE INDIA FUND, INC.
Dividends and Distributions (continued)
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
Because of the forgoing 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 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 Fund's
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 shareholder's 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 Agent's 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 Agent's 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.
28
THE INDIA FUND, INC.
Dividends and Distributions (concluded)
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
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, Westborough, Massachusetts 01581.
29
THE INDIA FUND, INC.
PRIVACY POLICY OF
ADVANTAGE ADVISERS, INC.
THE ASIA TIGERS FUND, INC.
THE INDIA FUND, INC.
--------------------------------------------------------------------------------
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.
30
THE INDIA FUND, INC.
PRIVACY POLICY OF
ADVANTAGE ADVISERS, INC.
THE ASIA TIGERS FUND, INC.
THE INDIA FUND, INC.
--------------------------------------------------------------------------------
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.
May 2003
31
THE INDIA FUND, INC.
INVESTMENT MANAGER:
Advantage Advisers, Inc.,
a subsidiary of Oppenheimer Asset
Management Inc.
ADMINISTRATOR:
Oppenheimer & Co. Inc.
SUB-ADMINISTRATOR:
PFPC Inc.
TRANSFER AGENT:
PFPC Inc.
CUSTODIAN:
Deutsche Bank AG
The Fund has adopted the Investment Manager's 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 (800) 421-4777 and by visiting the Securities and Exchange Commission's
website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings wih 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 Commission's 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 (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.
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. SCHEDULE OF INVESTMENTS
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.
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.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
--------------------------------------------------------------------------------------------------------------------------
(d) MAXIMUM NUMBER (OR
(c) TOTAL NUMBER OF SHARES (OR APPROXIMATE DOLLAR VALUE) OF SHARES
(a) TOTAL NUMBER OF (b) AVERAGE UNITS) PURCHASED AS PART OF (OR UNITS) THAT MAY YET BE
SHARES (OR UNITS) PRICE PAID PER PUBLICLY ANNOUNCED PLANS OR PURCHASED UNDER THE PLANS OR
PERIOD PURCHASED SHARE (OR UNIT) PROGRAMS PROGRAMS
--------------------------------------------------------------------------------------------------------------------------
01/01/05 to None None None None
01/31/05
--------------------------------------------------------------------------------------------------------------------------
02/01/05 to None None None None
02/28/05
--------------------------------------------------------------------------------------------------------------------------
03/01/05 to 110,112.1312 $26.654 110,112.1312 None
03/31/05
--------------------------------------------------------------------------------------------------------------------------
04/01/05 to None None None None
04/30/05
--------------------------------------------------------------------------------------------------------------------------
05/01/05 to None None None None
05/31/05
--------------------------------------------------------------------------------------------------------------------------
06/01/05 to None None None None
06/30/05
--------------------------------------------------------------------------------------------------------------------------
Total 110,112.1312 (1) $26.654 110,112.1312 None
--------------------------------------------------------------------------------------------------------------------------
(1) These shares were purchased in connection with the Fund's regular, semi-annual repurchase offer announced on February
23, 2005 that expired on March 14, 2005. In connection with this offer, the Fund offered to repurchase up to 5% of
its outstanding shares of common stock. 110,112.1312 shares were validly tendered for cash at a price approximately
equal to the Fund's net asset value of March 28, 2005.
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 registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's 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 the report that includes
the disclosure required by this paragraph, 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 registrant's 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 registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect,
the registrant's 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/ Bryan McKigney
-------------------------------------------------------
Bryan McKigney, Director, President & Chairman
(principal executive officer)
Date August 25, 2005
----------------------------------------------------------------------------
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/ Bryan McKigney
-------------------------------------------------------
Bryan McKigney, Director, President & Chairman
(principal executive officer)
Date August 25, 2005
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Alan Kaye
-------------------------------------------------------
Alan Kaye, Treasurer
(principal financial officer)
Date August 25, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.