![img-0.jpeg](img-0.jpeg) # abrdn New India Investment Trust plc Annual Report 31 March 2024 Seeking world-class, well-governed companies at the heart of India's growth abrdnnewindia.co.uk --- The Company invests in Power Grid Corporation of India, which expects to benefit from the country's rural electrification programme. --- ![img-1.jpeg](img-1.jpeg) ![img-2.jpeg](img-2.jpeg) "India's prospects are bright. The economy is the fastest-growing among its peers." Michael Hughes, Chairman ![img-3.jpeg](img-3.jpeg) "The key to taking advantage of this market's promise is picking quality stocks, backed by fundamental research, which aligns well with how we invest." Kristy Fong and James Thom Investment Manager Scan this QR Code below to register for email alerts relating to the Company: ![img-4.jpeg](img-4.jpeg) abrdn New India Investment Trust plc SCAN ME 1 --- 2 Why invest in India? ## Aspiration India's population is the largest in the world with an expanding middle class which will drive consumption growth ## Building India Urbanisation and infrastructure development have multiplier effects for job creation and the wider economy ## Renewables India has committed to meeting half of its energy needs from renewable sources by 2030, thereby reducing its dependence on imported fuels ## Domestic opportunities Global businesses are investing in and shifting production to, India, drawn by a wealth of incentives and opportunities ## Exporting talent India's giant tech services sector, built on a highly educated and diligent workforce, drives the export of services by helping global companies keep pace with the fast-changing tech innovation landscape ## Digitalisation India has made immense progress in digital investments, which will underpin its rise to be one of the largest global economies by the middle of this century ![img-5.jpeg](img-5.jpeg) # Why invest in abrdn New India Investment Trust plc? ## Robust financial strength and sustainable competitive advantage Indian companies meeting a 'quality' threshold are included in the portfolio, displaying both strong financial characteristics and a consistent competitive advantage in attractive industries or sectors ## Quality Management The management of the best companies in India is world-class and understands the importance of good governance to drive the best outcomes for investors and other stakeholders. Quality of management is a key attribute sought in portfolio companies ## Return of growth stocks As interest rates peak globally over the medium term, investors will seek out growth stocks which are set to benefit from this. The portfolio's focus on those Indian companies with the desire and capacity to expand will drive performance abrdn New India Investment Trust plc --- # Financial Highlights and Performance ## Financial Highlights | | 31 March 2024 | 31 March 2023 | % change | | --- | --- | --- | --- | | Equity shareholders' funds (net assets) | £427,054,000 | £357,919,000 | +19.3 | | Market capitalisation | £339,744,000 | £285,747,000 | +18.9 | | Share price (mid market) | 652.00p | 512.00p | +27.3 | | Net asset value per Ordinary share^{A} | 819.56p | 641.32p | +27.8 | | Discount to net asset value^{A} | 20.4% | 20.2% | | | Net gearing^{A} | 4.1% | 5.8% | | | Total return per share | 168.85p | (60.00p) | | | Operating costs | | | | | Ongoing charges ratio^{A} | 1.00% | 1.09% | | A Considered to be an Alternative Performance Measure. See pages 78 and 79 for further information on the one year percentage return. ## Performance (total return, in Sterling terms) | | 1 year % return | 3 year % return | 5 year % return | 10 year % return | | --- | --- | --- | --- | --- | | Share price^{A} | +27.3 | +20.3 | +41.8 | +190.4 | | Net asset value per Ordinary share^{A} | +27.8 | +30.7 | +54.4 | +211.6 | | Adjusted net asset value per Ordinary share^{A} | +31.9 | N/A | N/A | N/A | | MSCI India Index (sterling adjusted) | +34.4 | +56.6 | +81.0 | +238.2 | A Considered to be an Alternative Performance Measure. See page 80 for further information on the 1 year % return. Source: abrdn plc, Morningstar & Lipper. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Contents ## Overview Financial Highlights and Performance 3 ## Strategic Report Chairman's Statement 6 Investment Manager's Report 9 Investment Case Studies 11 Overview of Strategy 13 Promoting the Success of the Company 19 Performance 21 ## Portfolio Top Ten Investments 23 Portfolio 24 Sector Analysis and Sector Allocation 26 Currency Analysis 27 ## Governance Board of Directors 30 Directors' Report 32 Statement of Corporate Governance 39 Audit Committee's Report 40 Directors' Remuneration Report 44 Statement of Directors' responsibilities in respect of the Annual Report and financial statements 47 Independent Auditor's Report to the Members of abrdn New India Investment Trust plc 48 ## Financial Statements Statement of Comprehensive Income 55 Statement of Financial Position 56 Statement of Changes in Equity 57 Statement of Cash Flows 58 Notes to the Financial Statements 59 Alternative Performance Measures 78 Alternative Investment Fund Managers Directive Disclosures (unaudited) 81 ## Corporate Information Information about the Investment Manager 83 Our Investment Manager's Responsible Investment Process 85 abrdn's ESG Engagement 86 Investor Information 90 ## General Notice of Annual General Meeting 94 Glossary of Terms 99 Additional Shareholder Information 101 --- # Strategic Report The Company invests in KEI Industries, a manufacturer and distributor of cables and wiring across India. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Chairman's Statement ## Dear Shareholder In the Half-Yearly Report, I highlighted how India's impressive performance continued to defy a global environment rife with volatility. Since then, the country's upward trajectory has persisted – its stock market continues to be one of the best performing markets while the economy is the fastest-growing among its peers. In order for the Company to take best advantage of these positive markets, the Board has embarked on a number of initiatives over the year ended 31 March 2024: - encouraging the Manager to more proactively consider mid-cap stocks representing a greater proportion of the portfolio, while still preserving its investment philosophy with its focus on quality and growth characteristics. In response, the Board has noted that the Manager has extended its analyst coverage, with deeper knowledge of the mid-cap sector; - supporting the Manager in taking more active positions in stocks in which it has the most conviction; and - at the AGM in September 2023, putting forward a resolution to permit the Company to invest up to 10% of net assets into pre-IPO investments, which was overwhelmingly supported and, as a result, the Manager will pursue opportunities where feasible. Alongside these developments, the Board initiated a higher level of share buy-backs when necessary, and sought the more regular update of the Company's website (www.abrdnnewindia.co.uk), featuring additional webcasts and articles on India as the nation holds a general election involving over 1 billion voters. The Board expects shareholders to benefit from these developments in due course, against a background also of a lower management fee implemented from April 2023 onwards. ## Overview India's prospects are bright and the current buoyant mood on the ground is in sharp contrast to the prevailing global sentiment of caution and uncertainty. The economy is expanding at an annual rate above 7%, playing catch-up after a period of sub-par growth before the pandemic. This accelerating growth story is backed by encouraging macroeconomic trends, including a real estate boom, a robust infrastructure capex cycle and manageable levels of inflation. Interest rates appear to have peaked for now, barring any unexpected shocks to the economy, as the Reserve Bank of India has not announced any policy moves since February 2023. The rise in public spending to fund critical infrastructure projects – such as building more roads, railways and ports – has been a crucial spur to economic development in recent years, providing a solid foundation for sustainable growth. These projects have been designed to both create new jobs and encourage the revival of a private capex cycle which is now in its early stages and will help to sustain growth in the economy and in corporate earnings. As outlined in the Government's Interim Budget, India plans to spend another US$134 billion (£107 billion) on infrastructure alongside a renewed focus on long-term reforms. This is welcome news for India's capex-sensitive sectors such as capital goods and building materials where your Manager has re-positioned the portfolio by introducing new, high-quality names and adding to existing holdings. The recent election result was a surprise and is discussed in more detail in the Investment Manager's Report on page 9. ## Performance Over the year ended 31 March 2024, the Company's net asset value ("NAV") rose 27.8% in sterling terms (total return), marking a sharp turnaround from the previous 12 months. The Company's share price was up 27.3% while the discount to NAV of 20.4% was almost unchanged from that at March 2023. I am pleased that the Company has delivered strong absolute returns, albeit the riskier MSCI India Index (the "Benchmark") outperformed, rising 34.4% in total return terms. The Manager is working hard to improve performance both in absolute and relative terms and is confident that the underlying fundamentals of the portfolio remain sound, and our holdings continue to report healthy earnings progression. Looking at your Company's performance during the year in more detail, the largest positive contribution to relative performance came from property. The portfolio has a large exposure to this sector, compared to the Benchmark, as India is undergoing a long overdue recovery in residential property sales, and the long-term prospects remain bright. It is pleasing to note that your Manager's decision to proactively pivot the portfolio towards industrial names and likely beneficiaries of large-scale public spending is starting to pay off. Two other key developments influenced portfolio returns. Firstly, a liquidity deficit in the Indian banking system at the start of 2024 prompted concerns among investors over near-term loan growth and margin pressure for lenders. This affected the share price performance of HDFC Bank, which remained weak. The other issue has been the --- uneven recovery in consumption where urban demand has returned strongly while rural consumption remains relatively soft. This development weighed on the Company's core consumer staples holding – Hindustan Unilever. Our expectation is that there is room for both fiscal and monetary policy support by the Government to resolve these issues, noting the overall health of the banking sector remains strong. While HDFC Bank and Hindustan Unilever disappointed due to these challenges, they both remain high-quality businesses that are intrinsically linked to India's future prosperity. The Board and I continue to have faith in the Company's long-term growth potential. Your Manager is adapting the portfolio to market conditions while considering new ideas that will benefit from positive structural trends. Further detail on the drivers of performance and changes made to the portfolio during the year may be found in the Investment Manager's Report on pages 9 and 10. ## Manager Change After involvement with the Company for nearly 20 years, Kristy Fong is stepping down as Co-Investment Manager in September 2024. James Thom becomes the lead Investment Manager, assisted by Rita Tahliramani. The Board thanks Kristy for her stewardship of the Company's investment portfolio and wishes her well. ## Conditional tender offer In March 2022 the Board announced the introduction of a five-yearly performance-related conditional tender offer. The Board was concerned about the relative underperformance of the Company's NAV, as compared to its Benchmark. Following discussions with the Investment Manager, the Board decided that, should the Company's NAV total return underperform the Company's Benchmark over the five-year period from 1 April 2022, then shareholders should be offered the opportunity to realise up to 25 per cent of their investment for cash at a level close to NAV. For these purposes, the Company's NAV per share is adjusted for Indian capital gains tax (the "Adjusted NAV") to enable a like-for-like comparison with the Benchmark. The Board keeps the Company's performance under review and, over the first two years of the measurement period from 1 April 2022 to 31 March 2024, the Adjusted NAV total return was 20.7% versus the Benchmark's total return of 26.4% (please see the Alternative Performance Measures on page 80 for further information). ## Discount and Share Buybacks The Board continues to monitor actively the discount of the Ordinary share price to the NAV per Ordinary share and pursues a policy of selective buybacks of shares where to do so, in the opinion of the Board, is in the best interests of shareholders, while also having regard to the overall size of the Company. Over the year ended 31 March 2024, the Company bought back into treasury 3,702,011 (2023 - 2,127,206) Ordinary shares, representing 6.6% (2023 - 3.7%) of the issued share capital (excluding treasury shares) at the start of the year, a considerable step up in buyback activity. At 31 March 2024, there were 52,107,910 (2023 - 55,809,921) shares in issue with voting rights and an additional 6,962,230 (2023 - 3,260,219) shares held in treasury. Between the year end and 13 June 2024, the latest practicable date prior to approval of this Report, a further 564,198 shares were bought back into treasury resulting in 51,543,712 shares in issue with voting shares and 7,526,428 shares held in treasury. The Board believes that a combination of stronger long-term investment performance and effective marketing should increase demand for the Company's shares and reduce the discount to NAV at which they trade, over time. ## Gearing As at 31 March 2024, £26 million (2023 - £30m) had been drawn from the £30m bank loan provided by Royal Bank of Scotland International, which resulted in net gearing of 4.1% (2023 - 5.8%). During the year, this gearing had a positive impact on returns, though the Board and Manager are conscious of the increased interest cost of gearing, so keep the level of gearing under regular review. The ability to gear is one of the advantages of the closed ended company structure and your Manager continues to seek opportunities to deploy this facility for the benefit of shareholders. ## Impact of Indian Capital Gains Tax The Company, along with other investment vehicles, is subject to both short and long term capital gains taxes in India on the growth in value of its investment portfolio, which become payable when underlying investments are sold and profits crystallised. Where investments are valued at a profit, but not yet sold, the Company must accrue for the potential capital gains tax payable, which amounted to £19.4 million (2023 - £11.1 million) at 31 March 2024, equivalent to a reduction in the NAV per share of 37.2p or 4.5% at 31 March 2024 (2023 - 20.0p or 3.1%). abrdn New India Investment Trust plc --- 8 abrdn New India Investment Trust plc # Chairman's Statement Continued ## Shareholder Engagement The Board encourages shareholders to visit the Company's website (www.abrdnnewindia.co.uk) for the latest information and monthly factsheets as well as accessing podcasts and thought-leadership and macro research articles published by the Manager. ## Annual General Meeting The Company's AGM will be held at 18 Bishops Square, London E1 6EG at 12.30pm on Friday 20 September 2024. The AGM provides shareholders with an opportunity to ask any questions that they may have of either the Board or the Investment Manager. Voting on the resolutions to be put to shareholders will be conducted by way of a poll and those attending are encouraged to bring with them a letter of corporate representation in respect of their ownership of shares in the Company. I look forward to meeting as many of you as possible over refreshments which will follow the AGM. Shareholders, whether attending the AGM or not, are encouraged to submit questions for the Board and/or Investment Manager, in advance, by email to new.india@abrdn.com. ## Online Shareholder Presentation In order to encourage and promote interaction and engagement with the Company's shareholders, the Company is holding an interactive Online Shareholder Presentation (the "Presentation") at 11.00am on Thursday 12 September 2024, to cater for those shareholders who may be unable to attend the AGM. During the Presentation, shareholders will receive a short introduction from the Chairman and portfolio update from the Investment Manager, followed by an interactive question and answer session. The Presentation is being held ahead of the AGM in order to allow shareholders to submit their proxy votes prior to the meeting. Further information on how to register for the Presentation may be found on the Company's website (www.abrdnnewindia.co.uk). ## Update I am pleased to report that your Company has performed extremely well since the year end with total returns for the NAV of 14.7% compared to 6.0% for the Benchmark from 31 March 2024 to 10 June 2024 (the latest practicable date prior to approval of this Report). ## Outlook India's economy is the fastest-growing among its peers and the country offers favourable demographics: a large, relatively young population and a growing middle class. Indian corporations are becoming more sophisticated, with many competing at an international level. Economic conditions remain buoyant with supportive policymaking from the Government and Reserve Bank of India, while the capex cycle and infrastructure spending should help to sustain momentum. Indian companies are also benefitting as multinational corporations diversify their supply chains to reduce their reliance on China. From a global perspective, India enjoys more geopolitical stability compared to other emerging market countries with tensions between the United States and China remaining high. Investing in India, however, means accepting market volatility, particularly as high growth rates in corporate earnings come with high valuations. This is particularly true in small and mid-cap stocks; these do not form the core of our portfolio although they are included in it to ensure that shareholders benefit over the medium-to-longer term. Your Board is confident that your Manager has assembled a portfolio of high-quality, resilient companies that possess strong balance sheets and can profit from pricing power at each stage of the economic cycle. ![img-6.jpeg](img-6.jpeg) Michael Hughes Chairman 13 June 2024 --- # Investment Manager's Report In the year ended 31 March 2024, the Company's net asset value ("NAV") total return rose 27.8%, compared to an 8% decline in the previous year. A substantial part of that negative return was clawed back by sticking to our long-term quality investment philosophy and by repositioning the portfolio towards structurally attractive segments that are now paying off. However, the Company was not able to keep pace with the MSCI India Index, which rose 34.4%. We explain the reasons below. ## Market review As the Chairman describes on pages 6 and 7, the Indian market had a strong run throughout most of the year, underpinned by a robust domestic economy and an enviable growth trajectory. Retail inflation has remained steady at just over 5%, while the Reserve Bank of India has not increased interest rates since February 2023. The estimated GDP growth rate for the full financial year was projected at 7.6%, surpassing the previous year's figure of 7%, leading to India holding to its position as the world's fastest-growing major economy. We did see some pullback in the market this year, particularly in the small-and-mid ("SMID") cap space. After outperforming Indian large-caps last year, SMID companies corrected in March 2024 when the Indian securities regulator increased scrutiny towards domestic mutual funds due to rising valuations. We had been very selective in adding SMID names to the portfolio, preferring companies with good earnings visibility and a track record of delivering on growth. At the time of writing, India's 2024 general election has just concluded, and the outcome came as a big surprise to the market. Polls had predicted that Prime Minister Narendra Modi and his party would comfortably win enough seats in the lower house of parliament to form a government on their own. Instead, Modi's Bharatiya Janata Party (BJP) failed to secure a majority. This has forced Modi and the BJP into a coalition government for the first time in his career. Modi's bargaining power within this alliance is likely to be reduced, with a possibility of ministries reshuffling and some of them being given to the non-BJP leaders. As a result, we will need to keep a close watch on Cabinet formation and capital allocation in the FY25 budget. Thinking about the implications for policymaking, we view BJP's broad agenda around infrastructure, manufacturing, and technology is likely to continue, and would create structural tailwinds for the economy. New big bang reforms, however, are unlikely to come from a coalition government. Instead, we could see measures favouring populist agendas take precedence whilst there could be some moderation in capital expenditure. Job creation and tackling the rural economy could also take the spotlight. The Company's quality focus and positioning in several defensive sectors such as IT Services, Consumer Staples, and, to some extent, Banking and Insurance, should provide resilience to the portfolio through the current market turbulence. Our conviction in our India holdings remains strong, re-enforced by recent trips and meetings with company management teams. Valuation dips could present buying opportunities. ## Performance review The strongest returns came from the holdings in property as well as from infrastructure and capital expenditure (capex) beneficiaries in utilities and industrials sectors. Our consumer, financials, and energy stocks, however, lagged the market's rally. Real estate was the biggest performance driver, with our exposures benefitting from structural trends as well as the SMID rally seen throughout most of 2023. Property developers Godrej Properties (see the case study on page 12) and Prestige Estates were the top stock contributors, reporting strong pre-sales numbers for their new housing projects. India is undergoing a long overdue recovery in residential property sales and the future prospects for the overall sector remain bright. We were pleased to see that our repositioning towards industrial names and capex proxies has paid off. India has ramped up public capex by building more roads, railways, ports and similar projects to create additional jobs and revive private capex. Our holdings that benefited from this step-up in capital spending include ABB India as well as Power Grid Corporation of India. Power Grid has raised its capex guidance as its development pipeline and earnings visibility remain robust. Meanwhile, our telco exposure in Bharti Airtel (see the case study on page 11) did well amid ongoing industry consolidation, and on expectations of a new tariff hike after the elections. Some of our IPO names that were depressed in the previous year, due to the growth-to-value rotation in the market, have started to demonstrate positive performance. This includes affordable housing company Aptus Value Housing Finance and online insurance platform, PB Fintech. Looking at where the Company has fallen short, HDFC Bank and Hindustan Unilever have both disappointed in growth and, therefore, in relative share price performance. HDFC Bank will now take longer to deliver integration cost savings following its merger with mortgage lender HDFC, in a tighter liquidity environment. A sluggish rural economy has acted as a brake on Hindustan Unilever's growth. While we continue to believe in the medium-term investment theses for both stocks, we have partially cut these holdings to release funds for several of our new ideas discussed below. In the energy sector, our holding in Aegis Logistics did well but trailed its peers – mostly public sector companies – which we tend to avoid owning in the portfolio. Index heavyweight Reliance Industries lagged in 2023 but saw a recovery in its abrdn New India Investment Trust plc --- # Investment Manager's Report Continued share price in 2024. We do not hold the company due to reservations around capital allocation and governance standards. Finally, within consumer discretionary, our auto holdings performed well but underperformed some of their peers. Not holding online delivery company Zomato also affected relative performance. While we are aware that we are lightly exposed here, this sector is seeing increasingly stretched valuations, and we believe it is necessary to tread with caution. Overall, the underlying fundamentals of our portfolio remain sound, and our companies continue to report healthy earnings growth, mostly in line with expectations. ## Portfolio Activity During the year, we actively repositioned the portfolio to maximise potential returns. Key changes included scaling up the exposure to investment themes that we found attractive, provided we could find stocks that met our quality criteria from a bottom-up perspective in these sectors. These structurally attractive themes include: premiumisation, property upcycle, and infrastructure and capex beneficiaries. We also added some high-quality names based on stock-specific factors that were largely independent of more top-down themes. Within consumer, we introduced a new SMID-cap addition in the automotive sector, Uno Minda, which provides auto components to four-wheeler and two-wheeler OEMs. In real estate, we added Phoenix Mills, which operates high quality shopping malls in top-tier and state capital cities with a good pipeline of new assets expected over the next few years. It is also a premium consumption play as India's disposable income slowly tracks higher alongside growth. In Industrials, we introduced Siemens India, the Indian arm of the German multi-national, as well as a SMID-cap name, Apar Industries. We also added Havells India, a proxy to the electrical and consumer durable sector, and building material company Pidilite, an indirect beneficiary of the housing cycle and home improvement trend. In Software & Services, we scaled back our position given the sector's vulnerability to a slow-down in the core US market and a subsequent contraction in IT spend. However, we have also taken advantage of the price falls across the sector and added a new mid-cap name, Coforge, which provides niche IT services with deep domain expertise. While financial remains our largest portfolio weight by sector, we broadened our mix of stock holdings. We added to NBFCs (non-bank finance companies) by initiating Cholamandalam Investment and Finance that has a long growth runway and has operating levers to mitigate against rate headwinds. We also introduced KFin Technologies, a fast-growing player in the Mutual fund Registrar and Transfer Agency duopoly, benefitting from structural growth trends such as wealth accumulation in India. These were funded by reducing our banking exposure, primarily with the exit of Kotak Mahindra Bank. Lastly, we also exited lower conviction holdings Asian Paints and Renew Energy Global to fund some of the new ideas. ## Outlook India is the world's fastest-growing major economy, backed by a resilient macro backdrop that includes a real estate boom, strong consumer sentiment in urban areas, and a robust infrastructure capex cycle. The growth story is underpinned largely by supportive policies from the central government as well as a decade of painful, but necessary economic reforms. The groundwork laid by these sweeping reforms has put India on a positive economic trajectory. We are also seeing early signs of a private capex revival. This can potentially continue to sustain both economic momentum and corporate earnings growth. India still faces some near-term risks, most of which are external, including potentially higher global energy prices and a slowdown in the world economy. As a net oil importer, recent developments in the Middle East remain a potential source of concern as any escalation will push oil prices higher. As the Chairman noted earlier, valuation is also a perpetual risk – given its recent outperformance, India has become a consensus trade, with valuations becoming stretched, especially in small and mid-caps. The key to taking advantage of this market's promise is bottom-up stock picking that is backed by fundamental research, which aligns well with how we invest. The Company's downside is well-protected given our quality focus, and our defensive holdings are in a good position in case of profit taking. Furthermore, any correction in the market would be an opportunity to add to the holdings. The consistency of earnings growth of the portfolio remains healthy and individual company fundamentals, such as pricing power, strong balance sheets and the ability to sustain margins, remain solid. ![img-7.jpeg](img-7.jpeg) Kristy Fong and James Thom Investment Manager 13 June 2024 abrdn New India Investment Trust plc --- # Investment Case Studies ## Bharti Airtel – the most financially disciplined player in a consolidating telecom market Bharti Airtel offers mobile, voice, data and cloud-based solutions to over 500 million customers in 17 countries across Asia and Africa. It is India's largest integrated telecom solutions provider to the retail and enterprise markets, and also the No.2 mobile operator in Africa, after South Africa's MTN Group. We believe that Airtel is the most commercial and financially disciplined service provider in an Indian telecom landscape that has undergone significant market repair. The market has consolidated down from close to 12 companies just five to six years ago to less than a handful of players today, in what is now effectively a duopoly between Jio and Airtel. Thanks to the market repair, Airtel turned free cash flow (FCF) positive for the first time in 2022. The company has also demonstrated its ability to raise capital, with a rights issue of up to 210 billion rupees (£2 billion) in September 2021 and most of the proceeds yet to be used. Airtel's capex will also start to taper off as its rural expansion slows, easing the funding needs and potentially improving the FCF outlook, which could lead the company to consider paying down debt or even paying dividends. Most recently, the company also listed its Bharti Hexacom subsidiary, the group's first IPO in over a decade. While Airtel continues to deliver consistent growth across all its businesses with an industry leading average revenue per user (ARPU), its return on capital employed (ROCE), however, remains low at 9.4% [1]. The management indicated that tariff repair was critical to ensure the industry's health, and it was confident that tariffs would rise over the next two years. This would also help raise its ROCE. The market's structural dynamics are in Airtel's favour. The market remains underpenetrated, with mobile penetration standing at 69% as of FY22, indicating room for organic growth. Mobile spend as a percentage of GDP is low at 0.95% in FY22, which is much lower compared to other ASEAN markets at 1.2–1.8% [2]. As smartphones become more affordable and subscribers migrate to 5G, the uptake of data services is increasing; for Airtel, data services are growing rapidly and the group expects this trend to be sustainable [3]. The other key growth area is in home broadband services, which is doing well with healthy subscriber additions and improving ARPU, supported by the rollout of its high-speed Xstream AirFiber network across the country. On the sustainability front, the group continues to make progress on its ESG agenda. Airtel has committed to reduce absolute Scope 1 and 2 greenhouse gas emissions by 50.2% by FY 2030–31 from the base year of FY 2020–21. It has also committed to reducing absolute Scope 3 GHG emissions by 42% over the same time frame. [1] Bharti Airtel Limited – Media Release February 05, 2024 [2] abrdn research [3] Bharti Airtel Limited – Integrated Report and Annual Financial Statements 2022–23 abrdn New India Investment Trust plc --- # Investment Case Studies Continued ## Godrej Properties – reputable high-quality real estate developer in India Set up in 1897, the Godrej Group has its roots in India's independence and Swadeshi movement [1]. Its founder, Ardeshir Godrej, a lawyer-turned-serial entrepreneur, failed with a few ventures before he found success with a locks business [2]. The group has since grown into one with annual revenue of about US$6 billion earned from consumer goods, real estate, appliances, agriculture and other areas, and it is still controlled by the Godrej family – one of the most eminent industrial families in India with admirable track record of treating minority shareholders fairly over the decades. That is why we have felt comfortable investing in several of their listed entities over the years, including its primary property vehicle Godrej Properties Limited ("GPL"), which was established in 1990 and listed in 2010. The group considers real estate as a key growth area among its businesses. GPL is the country's largest developer by number of homes sold in FY23. It has delivered close to 41 million sq ft of real estate since FY18, and it is developing landmark projects in 12 cities across India covering over 18.58 million sq m [3]. GPL's solid execution has led to the developer being ranked as the most trusted real estate brand in the 2019 Brand Trust report. This also reflects its reputation and how it stands out from its peers in overall quality. Its other advantages include an asset-light and capital efficient development model, and good access to capital with the lowest bank funding rates across the sector. The company appears to be at an inflection point with improving fundamentals, and we expect steadily improving presales, profitability and cash flows over the next few years. More broadly, we view GPL as well positioned to benefit from the domestic real estate industry's up-cycle. The industry's longer-term outlook remains bright, supported by an aspirational population, rising urbanisation and incomes, and favourable regulatory changes. Aside from the reform of the Real Estate (Regulation and Development) Act in India, that has led to a more regulated industry and greater protection for home buyers, schemes like the Pradhan Mantri Awas Yojana and Rajiv Awas Yojana have incentivised developers to venture into the affordable housing segment, fostering accessibility and affordability for the population. The developer is also a leader on the sustainability front. It has been included among the global sustainability leaders in the Dow Jones Sustainability Indices list and has been ranked no.1 globally for three consecutive years in 2020, 2021 and 2022 by the Global Real Estate Sustainability benchmark (GRESB). MSCI has also given an ESG rating of BB to GPL, citing its green building efforts. As of the third quarter of FY23-24, 96% of GPL's portfolio is certified under credible external green building rating systems like IGBC and GRIHA [3]. In addition, the company is water positive and carbon neutral for Scope 1 and Scope 2 greenhouse gas emissions, and it is strengthening its efforts to include Scope 3 emissions through its supplier engagement programme. [1] Swadeshi movement – Wikipedia [2] About Godrej Properties | Best Real Estate Companies in India [3] Godrej Properties 3QFY2024 Results Presentation ![img-8.jpeg](img-8.jpeg) --- abrdn New India Investment Trust plc # Overview of Strategy ## Business Model The business of the Company is that of an investment company which continues to qualify as an investment trust for UK capital gains tax purposes. The Directors do not envisage any change either to this model or to the Company's activities in the foreseeable future. ## Investment Objective The Company aims to provide shareholders with long term capital appreciation by investment in companies which are incorporated in India, or which derive significant revenue or profit from India, with dividend yield from the Company being of secondary importance. ## Investment Policy The Company invests primarily in Indian equity securities. ### Delivering the Investment Policy At the AGM on 27 September 2023, shareholders approved a new investment policy, involving amendments to Risk Diversification; the sections under Gearing; Currency, Hedging Policy and Derivatives; and, Investment Restrictions are unchanged. The former investment policy, in place until 27 September 2023, may be found on page 12 of the Annual Report for the year ended 31 March 2023. The Company's current investment policy is as follows: ### Risk Diversification The investment policy is flexible, enabling it to invest in all types of securities, including equities, debt and convertible securities in companies listed on the Indian stock exchanges or which are listed on other international exchanges, and which derive significant revenue or profit from India. The Company may, where appropriate, invest in open-ended collective investment schemes and closed-end funds which invest in India and are listed on the Indian stock exchanges. The Company is free to invest in any particular market segment or geographical region of India or in small, mid or large capitalisation companies. The Company may invest up to 10% of its NAV in unquoted companies in aggregate, measured at the time of each investment. The Company's portfolio will typically comprise in the region of 25 to 50 holdings, but with due consideration given to spreading investment risk. No individual issuer is expected normally to represent a greater weight in the portfolio than the higher of (i) 10% of the Company's net assets or (ii) the individual issuer's weight in the MSCI India Index (in sterling terms) plus 2%, both as measured at the time of each investment, although there is a maximum permitted exposure to a single issuer of 20% of the Company's net assets at all times. ### Gearing The Company is permitted to borrow up to 25% of its net assets (measured when new borrowings are incurred). It is intended that this power should be used to leverage the Company's portfolio in order to enhance returns when and to the extent that it is considered appropriate to do so. Under normal circumstances, over the longer term and in tandem with the rising value of the Company's investments, gearing is expected to improve returns. The Company's gearing is essentially structural in nature but, in addition, may be used for specific opportunities or circumstances. The Directors take care to ensure that borrowing covenants permit flexibility of investment policy. ### Currency, Hedging Policy and Derivatives The Company's financial statements are maintained in Sterling while, because of its investment focus, nearly all of its portfolio investments are denominated and quoted in the Indian Rupee. Although it is not the Company's present intention to do so, the Company may, where appropriate and economic to do so, employ a policy of hedging against fluctuations in the rate of exchange between Sterling and other currencies in which its investments are denominated. Cash balances are held in such currency or currencies as the Manager considers appropriate, although it is expected that this would primarily be Sterling. Although the Company does not employ derivatives presently, it may do so, if appropriate, to enhance portfolio returns (of a capital or income nature) and for efficient portfolio management, that is, to reduce, transfer or eliminate risk in its investments, including protection against currency risks, or to gain exposure to a specific market. ### Investment Restrictions It is the investment policy of the Company to invest no more than 15% of its gross assets in other listed investment companies (including listed investment trusts). The Company held no investments in other listed investment companies during the year ended 31 March 2024. ## Benchmark The Company's Benchmark is the MSCI India Index (Sterling-adjusted). The Board also considers the Adjusted NAV (see Glossary on page 99) in relation to the conditional tender offer announced in March 2022. abrdn New India Investment Trust plc --- # Overview of Strategy Continued ## Key Performance Indicators At each Board meeting, the Directors consider a number of performance measures to assess the Company's success in achieving its objective. The main Key Performance Indicators ("KPIs") identified by the Board in relation to the Company, which are considered at each Board meeting, are as follows: | KPI | Description | | --- | --- | | Performance of NAV and share price compared to the Benchmark | The Board considers the Company's NAV return, the Adjusted NAV return and share price return, all relative to the Benchmark, to be the best indicator of performance over time. The figures for this year and for the past three, five and ten years are set out on page 3 for the NAV return and share price total return while a graph showing NAV and share price total return performance against the Benchmark over the past five years is shown on page 21. | | Discount to NAV | The discount at which the Company's share price trades relative to the NAV per share is monitored by the Board. A graph showing the discount over the last five years is shown on page 21. | | Ongoing charges | The Board regularly monitors the operating costs of the Company and the ongoing charges for this year and the previous year are disclosed in Financial Highlights and Performance on page 3. | ## Principal Risks and Uncertainties There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial position, performance and prospects. The Board has carried out a robust assessment of these risks, including emerging risks, which include those that would threaten its business model, future performance and solvency. The principal risks associated with an investment in the Company's shares are published monthly in the Company's factsheet which is available from the Company's website: abrdnnewindia.co.uk. The principal risks and uncertainties, and emerging risks, faced by the Company are reviewed annually by the Audit Committee in the form of a detailed risk matrix and heat map and they are described in the table below, together with any mitigating actions. In addition, the Board has identified, as an emerging risk, the general escalation of geo-political risk globally. This may have implications for investors in India (see "Single Country Risk" on page 15). In addition, the Audit Committee considers the implications for the Company's investment portfolio of a changing climate. The Board assesses this emerging risk as it develops, including how investor sentiment is evolving towards climate risk within investment portfolios, and will consider how the Company may mitigate this risk, and other emerging risks, if and when they become material. The Board is also conscious of the development of Artificial Intelligence ("AI"), which may have a potentially positive or negative impact at Company, sector and country level. In all other respects, the Company's principal risks and uncertainties have not changed materially since the date of the previous Annual Report and are not expected to change materially for the current financial year. An explanation of other risks relating to the Company's investment activities, specifically market price, interest rate, liquidity and credit risk, and a note of how these risks are managed, is contained in Note 17 to the financial statements. abrdn New India Investment Trust plc --- | Description | Mitigating Action | | --- | --- | | Strategic risk – inappropriate business strategy leads to lack of demand for the Company's shares, leading to its shares trading at a persistent and anomalous discount to its Net Asset Value | The Board reviews its strategy and investment mandate annually in the context of developments in markets and taking account of investor feedback. | | Market risk – falls in the prices of securities issued by Indian companies, which may be caused by company-specific issues or may be determined by local and international economic, political, social, and financial factors, including pandemics, natural disasters (arising from climate change or otherwise) or geo-political conflicts. | The Investment Manager seeks to reduce market risk by investing in a wide variety of companies with strong balance sheets and the ability to generate increased earnings. In addition, investments are made in diversified sectors in order to reduce the risk of a single large exposure. The Investment Manager believes that diversification should be looked at in absolute terms rather than relative to the Benchmark. The performance of the portfolio relative to the Benchmark and the underlying stock and sector weightings in the portfolio against their Benchmark weightings are monitored closely by the Board. | | Poor investment performance – poor investment performance leads to loss of asset value in comparison to the benchmark and/or the peer group, and, over time, can lead to a widening of the discount to NAV at which the Company's shares trade. | The investment performance of the Manager is reviewed at each Board meeting and compared to the benchmark and the peer group. Exposure to a range of risk factors is also reviewed. | | Discount – factors which affect the discount to NAV at which the Ordinary shares of the Company trade. These may include the popularity of the investment objective of the Company, the popularity of investment trust shares in general, the investment performance of the Company, and the ease with which the Company's Ordinary shares can be traded on the London Stock Exchange. | The Board keeps under review the discount and undertakes selective buyback of shares where to do so would be in the best interests of shareholders, balanced against reducing the overall size of the Company. Any shares bought back are held in treasury. | | Single country risk – the Company invests in companies which are incorporated in, or derive significant revenue or profit from, a single country – India. Investing in a single country, which is also an emerging market, is generally a higher risk strategy than investing more widely, or in developed markets. There is likely to be greater political and regulatory risk, and the standards of disclosures and corporate governance may be less developed than in developed markets. In addition, there may be specific internal political and social issues, or wider geo-political issues, which could lead to social upheaval, unrest, or conflict. | The Company's exposure to India is an integral part of its investment strategy. Risk can be mitigated, to a degree, by the monitoring of emerging risks, and by appropriate actions in relation to portfolio construction, liquidity and gearing. The Board is kept informed of political, regulatory and tax issues affecting the portfolio. | | These events may lead to falls in equity markets, and also adverse foreign currency movements. | The Board monitors the Rupee/Sterling exchange rate and reviews the currency impacts on both capital and income regularly, although the Company did not hedge its foreign currency exposure during the year. | | Supplier risk – The Company is dependent on the services provided by third parties, and in particular the Manager and Depositary. Failure by third parties to carry out their obligations to the Company, or reputational issues or inadequate succession arrangements, could disrupt the level of service provided. In particular, the insolvency of the depositary or custodian or sub-custodian, or a shortfall in the assets held by | The Board reviews the overall performance of the Manager and all other key service providers on a regular basis. In particular, the Depositary, BNP Paribas Trust Corporation UK Limited, presents to the Board at least annually on the Company's compliance with the Alternative Investment Fund Managers Directive ("AIFMD"). The Manager separately monitors the activities of the depositary and reports to the Board on any exceptions arising. | abrdn New India Investment Trust plc --- # Overview of Strategy # Continued | Description | Mitigating Action | | --- | --- | | that depository, custodian or sub-custodian arising from fraud, operational errors or settlement difficulties resulting in a loss of assets owned by the Company. | | | Financial and regulatory – the financial risks associated with the portfolio could result in losses to the Company. In addition, failure to comply with relevant regulation (including the Companies Act, the Financial Services and Markets Act, the Alternative Investment Fund Managers Directive, accounting standards, investment trust regulations and the Listing Rules, Disclosure Guidance and Transparency Rules and Prospectus Rules) may have an adverse impact on the Company. | The financial risks associated with the Company include market risk, liquidity risk and credit risk, all of which are mitigated by the Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in Note 17 to the financial statements. | | Any change in the Company's tax status or in taxation legislation either in India or in the UK (including the tax treatment of dividends, capital gains or other investment income received by the Company) could affect the value of the investments held by the Company and the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders. | The Board is responsible for ensuring the Company's compliance with applicable regulations. Monitoring of this compliance, and regular reporting to the Board thereon, has been delegated to the Manager. The Board receives updates from the Manager and AIC briefings concerning industry changes. From time to time, the Company also employs external advisers covering specific areas of compliance. | | In particular, the calculation of Indian capital gains tax which may be due can be complex and is dependent on the interpretation of the legislation, which may result in an under- or over-provision being made. | In particular, the Board receives reports from the Manager covering investment movements, the level and type of forecast income and expenditure and the amount of proposed dividends with a view to ensuring that the Company continues to qualify as an investment trust under Chapter 4 of Part 24 of the Corporation Tax Act 2010. A breach of these regulations would mean that the Company is no longer exempt from UK capital gains tax on profits realised from the sale of its investments. | | | The Indian capital gains tax provision is calculated by an independent third party and reviewed at least half-yearly by the Audit Committee. | | Gearing – while the use of gearing should enhance the total return on the Ordinary shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is less than the cost of borrowing, further reducing the total return on the Ordinary shares. A significant fall in the value of the Company's investment portfolio could result in a breach of bank covenants and trigger demands for early repayment. | The Board is responsible for determining the gearing strategy for the Company, with day-to-day gearing decisions being made by the Investment Manager. Borrowings are short term in nature and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy. The Board has agreed certain gearing restrictions with the Manager and reviews compliance with these guidelines at each Board meeting. Loan agreements are entered into following review by the Company's lawyers. | | Unlisted securities – the Company may invest in unlisted securities, which may not be readily realisable, and may be more difficult to value in the absence of a quoted price. There may be less available information and less regulation in respect of disclosures and corporate governance. | At 31 March 2024, there were no unlisted investments in the portfolio. The Manager is currently seeking the necessary regulatory permissions to make unlisted investments in India. Once obtained, the Manager will conduct appropriate due diligence in respect of any unlisted investments. Valuation will be assessed by an independent third party and reviewed at least half-yearly by the Audit Committee. | 16 abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Promoting the Company The Board recognises the importance of updating existing investors as well as promoting the Company to prospective investors, with the aim of improving liquidity in the Company's shares and reducing the discount at which they trade, thereby enhancing value. Communicating the long-term attractions of the Company is key. The Board seeks to achieve this through subscription to, and participation in, the promotional programme run by abrdn on behalf of the investment companies under its management. The Company's financial contribution to the programme is matched by abrdn. abrdn's promotional activities team reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the composition of that register. The Company further supports the Manager's investor relations programme which involves regional roadshows as well as promotional and public relations campaigns. # Board Diversity and Succession The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow the Board to fulfil its obligations. The Board also recognises the benefits, and is committed to, the principle of diversity in its recruitment of new Board members. The Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment and will search widely when recruiting any new Director with a view to maximising diversity. Consequently, the Company does not consider it appropriate to set specific diversity targets. At 31 March 2024, there were three male Directors and one female Director on the Board. The Board has agreed a policy whereby no Director, including the Chairman, shall serve for longer than the ninth AGM after the date of their initial date of appointment as a Director unless in relation to exceptional circumstances. # Environmental, Social and Human Rights Issues The Company has no employees as it is managed by abrdn Fund Managers Limited and there are therefore no disclosures to be made in respect of employees. The Company's responsible investment policy is outlined on page 15 while the Manager's ESG engagement is set out on pages 85 to 89. Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. Notwithstanding this, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter. # Global Greenhouse Gas Emissions and Streamlined Energy and Carbon Reporting ("SECR") All of the Company's activities are outsourced to third parties. The Company therefore has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013. For the same reason as set out above, the Company considers itself to be a low energy user under the SECR regulations and therefore is not required to disclose energy and carbon information. # Task Force for Climate-related Financial Disclosures ("TCFD") Under Listing Rule 15.4.29(R), the Company, as a closed ended investment company, is exempt from complying with the Task Force on Climate-related Financial Disclosures ("TCFD"). Whilst TCFD is currently not applicable to the Company, the Manager has produced a product level report on the Company in accordance with the FCA's rules and guidance regarding the disclosure of climate-related financial information consistent with TCFD Recommendations and Recommended Disclosures. These disclosures are intended to help meet the information needs of market participants, including institutional clients and consumers of financial products, in relation to the climate-related impact and risks of the 17 --- 18 abrdn New India Investment Trust plc # Overview of Strategy ## Continued Manager's TCFD in-scope business. The product level report on the Company is available on the Manager's website at: invtrusts.co.uk. ## Viability Statement The Company does not have a fixed period strategic plan, but the Board does formally consider risks and strategy on at least an annual basis. The Board regards the Company, with no fixed life, as a long-term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a medium-term horizon and the inherent uncertainties of looking out further than three years. Taking into account the Company's current position and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In forming this expectation, the Directors looked to the following: - the Company's assets consist, substantially, of a portfolio of readily realisable quoted securities, where the Directors monitor the liquidity of each holding as well as reviewing the outcome of testing undertaken by the Manager in which the portfolio is subject to adverse market scenarios; - the principal risks and uncertainties detailed on pages 14 to 16 and the steps taken to mitigate these, and noting the strategic and performance risks (page 15) are considered to be the most significant for the Company; - a significant proportion of the expenses are proportional to the Company's NAV and will reduce if the NAV falls; - the Directors regularly review the Company's level of gearing, including financial modelling undertaken by the Manager to establish what level of reduction in the Company's NAV would require to occur in order to cause a breach in the covenants attached to the Company's £30m bank loan facility; - the Company's third-party suppliers continuing to deliver services to the Company in accordance with the underlying agreements and not experiencing significant operational difficulties in respect of the services provided to the Company, although, if required, alternative suppliers could be engaged to provide these services at limited notice; and - in advance of expiry in August 2025 of the Company's £30m loan the Company will enter into negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access borrowings. However, should these terms not be forthcoming, any outstanding borrowing would be repaid through the proceeds of equity sales. Accordingly, taking into account the Company's current position and the potential impact of its principal risks and uncertainties, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this report. In making this assessment, the Board undertook stress testing of the Company's forecast revenue account as well as scenario analysis in relation to a significant reduction in the liquidity of the underlying investment portfolio. ## Duration The Company does not have a fixed life but, further to a change in the Articles of Association approved by shareholders at the AGM on 28 September 2022, an ordinary resolution to continue the Company is put to shareholders at every fifth AGM. The next continuation resolution will be put to shareholders at the AGM in 2027. ## Likely Future Developments The Board expects the Company to continue to pursue its investment objective and accepts that this may involve divergence from the Benchmark. The companies which make up the investment portfolio are considered by the Investment Manager to demonstrate resilience and to offer opportunities for investors to benefit from the development of the broader Indian economy. Further information on the outlook and future developments of the Company may be found in the Chairman's Statement on page 8 and in the Investment Manager's Report on pages 9 and 10. Michael Hughes Chairman 13 June 2024 --- # Promoting the Success of the Company ## The Purpose of the Company and Role of the Board The Board is required to report on how it has discharged its duties and responsibilities under section 172 of the Companies Act 2006. Under this legislation, the Directors have a duty to promote the success of the Company for the benefit of its members as a whole, taking into account the likely long-term consequences of decisions, the need to foster relationships with the Company's stakeholders and the impact of the Company's operations on the environment. The purpose of the Company is to act as a vehicle to provide, over time, attractive financial returns to its shareholders. Investment trusts, such as the Company, are long-term investment vehicles and are typically externally managed, have no employees, and are overseen by an independent non-executive board of directors. During the year, the Board comprised four independent non-executive Directors with a broad range of skills and experience across all major functions that affect the Company. The Board retains responsibility for taking all decisions relating to the Company's investment objective and policy, gearing, corporate governance and strategy, and for monitoring the performance of the Company's service providers. The Board's philosophy is that the Company should operate in a transparent culture where all parties are provided with respect as well as the opportunity to offer practical challenge and participate in positive debate which is focused on the aim of achieving the expectations of shareholders and other stakeholders alike. The Board expects the Manager to act as a responsible steward of the Company's investments (see pages 85 to 89 for further information). Further information on the Manager's responsible investing may be found at: www.abrdn.com/en-gb/seeing-things-differently ## How the Board Engages with Stakeholders The Company's main stakeholders are its Shareholders, the Manager, Investee Companies, Service Providers, Debt Providers and the Environment and Community. The Board considers its stakeholders at Board meetings and receives feedback on the Manager's interactions with them. | Stakeholder | How the Board Engages | | --- | --- | | Shareholders | The Company's shareholders are key stakeholders and the Board places great importance on communication with them. The Board welcomes all shareholders' views and aims to act fairly between all shareholders. The Chairman, Manager and Company's broker regularly meet with current and prospective shareholders to discuss performance and shareholder feedback is discussed by the Directors at Board meetings. In addition, the Chairman meets with major shareholders in the absence of representatives of the Manager, as necessary. Regular updates are provided to shareholders through the Annual Report, Half Yearly Report, Manager's monthly factsheets, Company announcements, including daily net asset value announcements, and the Company's website. In normal years, the Company's Annual General Meeting provides a forum, both formal and informal, for shareholders to meet and discuss issues with the Directors and Manager. | | Manager | The Investment Manager's Report on pages 9 and 10 details the key investment decisions taken during the year. The Investment Manager has continued to manage the Company's assets in accordance with the mandate provided by shareholders, with the oversight of the Board. The Board regularly reviews the Company's performance against its investment objective and the Board undertakes an annual strategy review to ensure that the Company is positioned well for the future delivery of its objective for its stakeholders. The Board receives presentations from the Investment Manager at every Board meeting to help it to exercise effective oversight of the Investment Manager and the Company's strategy. The Board, through the Management Engagement Committee, formally reviews the performance of the Manager at least annually and further details are provided on page 35. | abrdn New India Investment Trust plc --- # Promoting the Success of the Company Continued | Stakeholder | How the Board Engages | | --- | --- | | Investee Companies | Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the Manager which has sub-delegated that authority to the Investment Manager. The Board has also given discretionary powers to the Investment Manager to exercise voting rights on resolutions proposed by the investee companies within the Company's portfolio. The Investment Manager reports to the Board on a quarterly basis on stewardship (including voting) issues. Through engagement and exercising voting rights, the Investment Manager actively works with portfolio companies to improve corporate standards, transparency and accountability, and report thereon to the Board. | | Service Providers | The Board seeks to maintain constructive relationships with the Company's suppliers either directly or through the Manager with regular communications and meetings. The Audit Committee conducts an annual review of the performance, terms and conditions of the Company's key service providers to ensure they are performing in line with Board expectations and providing value for money. | | Debt Providers | On behalf of the Board, the Manager maintains a constructive working relationship with Royal Bank of Scotland International Limited (London Branch), part of NatWest Group plc, the provider of the Company's £30m multi-currency loan facility, ensuring compliance with its loan covenants and arranging for regular updates for the lender on the Company's business activities, where requested. | | Environment and Community | The Board and Manager are committed to investing in a responsible manner and the Investment Manager integrates Environmental, Social and Governance ("ESG") considerations into its research and analysis as part of the investment decision-making process. Further information on the Manager's ESG engagement, with case studies from the investment portfolio, may be found on pages 85 to 89. | ## Specific Examples of Stakeholder Consideration During the Year While the importance of giving due consideration to the Company's stakeholders is not new, and is considered as part of every Board decision, the Directors were particularly mindful of stakeholder considerations during the following decisions undertaken during the year ended 31 March 2024. ## Share buybacks During the year the Company bought back into treasury 3.7 million shares, providing a small accretion to the NAV per share and a degree of liquidity to the market. The discount at which the Company's share price sits as compared to its NAV per share was wider than the historic average and the Board has instructed a step-up in share buyback activity. It is the view of the Board that this policy is in the interest of all shareholders. ## Online shareholder presentation The Company held an online shareholder presentation on 14 September 2023 to encourage and promote interaction and engagement with the Company's shareholders. During the presentation, shareholders received updates from the Chairman and Investment Manager and were then able to participate in an interactive question and answer session. As explained in the Chairman's Statement on page 8, the Board is holding another Online Shareholder Presentation at 11.00am on 12 September 2024. The event is being held ahead of the AGM in order to allow shareholders to submit their proxy votes prior to the AGM. abrdn New India Investment Trust plc --- Performance ## Ten Year Financial Record | Year to 31 March | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Total income (£'000) | 341 | 374 | 3,104 | 3,318 | 3,602 | 5,185 | 4,517 | 5,059 | 6,123 | 4,903 | | Per share (p) | | | | | | | | | | | | Net revenue (loss)/return | (0.39) | (1.06) | (0.28) | (0.71) | (0.35) | 2.08 | 0.19 | (0.28) | (0.59) | (3.77) | | Dividends^{a} | n/a | n/a | n/a | n/a | n/a | 1.00 | n/a | n/a | n/a | n/a | | Total return/(loss) | 121.94 | (23.42) | 125.81 | 2.12 | 41.90 | (120.34) | 216.25 | 69.64 | (60.00) | 168.85 | | Net asset value per share (p) | | | | | | | | | | | | Basic | 385.49 | 362.07 | 487.88 | 490.00 | 531.90 | 411.41 | 627.05 | 697.30 | 641.32 | 819.56 | | Shareholders' funds (£'000) | 227,708 | 213,874 | 288,190 | 289,444 | 314,196 | 241,583 | 366,106 | 403,995 | 357,919 | 427,054 | a 2020 dividend represents 0.22p per share paid from revenue reserves and 0.78p per share paid from capital reserves. ## Share Price Discount to NAV Ten years ended 31 March 2024 ![img-9.jpeg](img-9.jpeg) ## Total Returns of NAV and Share Price versus Benchmark total return Ten years ended 31 March 2024 (rebased to 100 at 31 March 2014) ![img-10.jpeg](img-10.jpeg) abrdn New India Investment Trust plc --- # Portfolio A new stock purchased by the Company during the year was Phoenix Mills, a leading retail-led developer and operator across India with quality shopping malls in top-tier and state capital cities, which is seeking to take advantage of rising consumer consumption. 22 © 2016 The Media Investing at Trust plc --- # Top Ten Investments As at 31 March 2024 | 8.1% | ICICI Bank ICICI Bank has been delivering superior growth and returns improvement without compromising on asset quality. It has leveraged on its scale as well as retail and digital franchise to grow in mortgages and also growing off a low base in business banking and SMEs. | 5.6% | HDFC Bank HDFC Bank is India's leading private sector bank that now has a complete suite of retail banking products after the merger with HDFC, India's leading provider of mortgage finance. The bank has solid underwriting standards and a progressive digital stance, further strengthening its competitive edge. | | --- | --- | --- | --- | | 5.6% | Bharti Airtel Bharti Airtel remains the leading telecom service provider with a pan-India reach and sophisticated customer base with higher average mobile spending. | 4.9% | Infosys One of India's best software developers, it continues to impress with its strong management, solid balance sheet and sustainable business model. | | 4.7% | Power Grid Corporation of India Power Grid Corporation of India forms the backbone of India's electricity infrastructure. It is poised to play a key role in the growth of renewable energy delivery to the grid over the next few decades as the government plans ambitious renewable targets for the electricity sector. | 4.6% | Ultratech Cement A clear industry leader in India's cement industry, backed by strong brand recognition, a good distribution and sales network and solid product quality. Its focus on cost efficiency and an improving energy mix have given UltraTech a cost advantage. | | 4.1% | SBI Life Insurance Among the leading domestic life insurers, SBI Life's competitive edge comes from a wide reach of SBI branches, highly productive agents, a low cost ratio and a reputable SBI brand. | 3.8% | Aegis Logistics A strong and conservative player in India's gas and liquids logistics sector, with a first mover advantage in key ports and a fair amount of capacity expansion to come. Its storage and logistics segment is benefitting from the burgeoning flow of chemicals and fuels across the country. In addition, the government's push for the adoption of cleaner energy has boosted its liquefied natural gas business. | | 3.8% | Tata Consultancy Services A top-class Indian IT services provider with the most consistent execution and lowest attrition rates. It is a long-term compounder with a decent outlook for revenue growth and order wins over the medium term. | 3.8% | Hindustan Unilever The largest fast-moving consumer goods company (FMCG) in India, with an unrivalled portfolio of brands, an extensive nationwide distribution network, and a long and successful operational track record in the country. | abrdn New India Investment Trust plc --- Portfolio As at 31 March 2024 | Company | Industry | Valuation 2024 £'000 | Total assets^{AB} 2024 % | | --- | --- | --- | --- | | ICICI Bank | Financials | 36,682 | 8.1 | | HDFC Bank | Financials | 25,250 | 5.6 | | Bharti Airtel | Communication Services | 25,234 | 5.6 | | Infosys | Information Technology | 22,465 | 4.9 | | Power Grid Corporation of India | Utilities | 21,141 | 4.7 | | Ultratech Cement | Materials | 20,845 | 4.6 | | SBI Life Insurance | Financials | 18,720 | 4.1 | | Aegis Logistics | Energy | 17,484 | 3.8 | | Tata Consultancy Services | Information Technology | 17,202 | 3.8 | | Hindustan Unilever | Consumer Staples | 17,098 | 3.8 | | Ten largest investments | | 222,121 | 49.0 | | Prestige Estates Projects | Real Estate | 16,710 | 3.7 | | Godrej Properties | Real Estate | 14,415 | 3.2 | | Axis Bank | Financials | 13,997 | 3.1 | | Mahindra & Mahindra | Consumer Discretionary | 13,737 | 3.1 | | Maruti Suzuki India | Consumer Discretionary | 11,445 | 2.5 | | Titan | Consumer Discretionary | 11,076 | 2.5 | | KEI Industries | Industrials | 10,789 | 2.4 | | ABB India | Industrials | 10,566 | 2.3 | | PB Fintech | Financials | 10,514 | 2.3 | | Cholamandalam Investment and Finance | Financials | 9,633 | 2.1 | | Top twenty investments | | 345,003 | 76.2 | | Nestlé India | Consumer Staples | 9,425 | 2.1 | | J.B. Chemicals & Pharmaceuticals | Healthcare | 9,290 | 2.0 | | Vijaya Diagnostic Centre | Healthcare | 8,960 | 2.0 | | KFIN Technologies | Financials | 7,889 | 1.7 | | Tata Consumer Products | Consumer Staples | 7,755 | 1.7 | | Siemens | Industrials | 7,473 | 1.6 | | Pidilite Industries | Materials | 7,265 | 1.6 | | Havells India | Industrials | 7,118 | 1.6 | | Fortis Healthcare | Healthcare | 6,899 | 1.5 | | Hindalco Industries | Materials | 6,693 | 1.5 | | Top thirty investments | | 423,770 | 93.5 | 24 abrdn New India Investment Trust plc --- As at 31 March 2024 | Company | Industry | Valuation 2024 £'000 | Total assets^{AB} 2024 % | | --- | --- | --- | --- | | Aptus Value Housing Finance | Financials | 6,547 | 1.5 | | Info Edge | Communication Services | 5,528 | 1.2 | | APAR Industries | Industrials | 5,436 | 1.2 | | Container Corporation of India | Industrials | 5,431 | 1.2 | | Affle India | Communication Services | 4,427 | 1.0 | | Syngene International | Healthcare | 4,404 | 1.0 | | Coromandel International | Materials | 3,008 | 0.7 | | Phoenix Mills | Real Estate | 2,485 | 0.5 | | UNO Minda | Consumer Discretionary | 2,476 | 0.5 | | Coforge | Information Technology | 2,110 | 0.5 | | Top forty investments | | 465,622 | 102.8 | | Global Health India | Healthcare | 167 | – | | Total investments | | 465,789 | 102.8 | | Net liabilities (before deducting prior charges)^{A} | | (12,782) | (2.8) | | Total assets^{AB} | | 453,007 | 100.0 | abrdn New India Investment Trust plc --- # Sector Analysis and Sector Allocation ## Sector Breakdown As at 31 March 2024 ![img-11.jpeg](img-11.jpeg) ## Sector Allocation ![img-12.jpeg](img-12.jpeg) ### Sector allocation - Financials - Industrials - Information Technology - Consumer Discretionary - Materials - Communication Services - Consumer Staples - Real Estate - Healthcare - Utilities - Energy abrdn New India Investment Trust plc --- # Currency Analysis ## Indian Rupee/Sterling Currency Movement Year ended 31 March 2024 ![img-13.jpeg](img-13.jpeg) abrdn New India Investment Trust plc 27 --- # Governance 28 abrdn New India Investment Trust plc --- ![img-14.jpeg](img-14.jpeg) abrdn New India Investment Trust plc 29 --- abrdn New India Investment Trust plc # Board of Directors ![img-15.jpeg](img-15.jpeg) ## Michael Hughes Independent Non-Executive Chairman and Chairman of the Nomination Committee ## Experience Currently, an investment consultant to a family office, an asset management company, and a national charity, Michael was formerly a Director of Baring Asset Management Limited from 1998, and Chief Investment Officer from 2000, until his retirement in 2007. Prior to this, he was a Managing Director of Barclays Capital (previously BZW) and Chairman of the Board of pension trustees. Before 'Big Bang' he was a Partner at stockbrokers de Zoete and Bevan. ## Length of service Appointed a Director on 7 September 2016 and Chairman on 28 September 2022. ## Contribution The Nomination Committee has reviewed the contribution of Michael Hughes, in light of his proposed re-election as a Director at the forthcoming AGM, and has concluded that he has continued to chair the Company expertly, fostering a collaborative spirit between the Board and Manager while ensuring that meetings remain focussed on the key areas of stakeholder relevance. ## All other public company directorships: None ![img-16.jpeg](img-16.jpeg) ## David Simpson Senior Independent Non-Executive Director ## Experience Initially qualified as a solicitor before following a career in corporate finance, which included seven years with Barclays de Zoete Wedd and 15 years with KPMG, latterly as global head of mergers and acquisitions, David has worked with numerous major corporates, listed companies, private equity, charitable and public bodies. His interest in India derives from his previous career and from his former role as a non-executive director of ITC Limited, a major listed Indian company. ## Length of service Appointed a Director on 1 November 2021 and Senior Independent Director on 28 September 2022. ## Contribution The Nomination Committee has reviewed the contribution of David Simpson, in light of his proposed re-election as a Director at the forthcoming AGM, and has concluded that he continues to provide to the Board significant investment insight and knowledge of the investment trust sector, including his discharge of the additional responsibilities as Senior Independent Director. ## All other public company directorships: Ecofin Global Utilities and Infrastructure Trust plc (Chairman) and M&G Credit Income Investment Trust plc (Chairman). 30 --- ![img-17.jpeg](img-17.jpeg) ## Andrew Robson Independent Non-Executive Director and Chairman of the Audit Committee ## Experience A qualified Chartered Accountant, with a background in investment banking and as a finance director, Andrew was a director of Robert Fleming & Co Limited and SG Hambros and finance director at eFinancialGroup Limited and the National Gallery. He has been a non-executive director of Baillie Gifford China Growth Trust PLC, JP Morgan Smaller Companies Investment Trust plc, Shires Income plc, Mobeus Income & Growth 4 PLC and British Empire Securities & General Trust plc. ## Length of service Appointed a Director on 1 August 2022 and Chairman of the Audit Committee on 28 September 2022. ## Contribution The Nomination Committee has reviewed the contribution of Andrew Robson and has concluded that he chairs the Audit Committee expertly as well as providing to the Board significant investment insight and knowledge of the investment trust sector. ## All other public company directorships: BlackRock Energy and Resources Income Trust PLC and JPMorgan European Growth & Income plc. ![img-18.jpeg](img-18.jpeg) ## Rebecca Donaldson Independent Non-Executive Director and Chairman of the Management Engagement Committee ## Experience Over the last thirty years, Rebecca has led the development of global marketing, communications and investor relations solutions for a broad range of investment companies, most recently as Head of Marketing Services at Insight Investments and previously with BMO Global Asset Management, Fidelity Worldwide Investments, Dexion Capital plc (now Fidante Partners) and UBS Global Asset Management AG. ## Length of service Appointed a Director on 1 September 2020 and Chairman of the Management Engagement Committee on 28 September 2022. ## Contribution The Nomination Committee has reviewed the contribution of Rebecca Donaldson in light of her proposed re-election as a Director at the forthcoming AGM and has concluded that her strong digital marketing expertise continues to underpin the Company's commitment to improve its promotion to both existing and potential shareholders. ## All other public company directorships: None abrdn New India Investment Trust plc --- Directors' Report The Directors present their Report and the audited Financial Statements of the Company for the year ended 31 March 2024, taking account of any events between the year end and the date of approval of this Report. ## Results The Company's results, including its performance for the year against its Key Performance Indicators ("KPIs"), may be found on pages 6 and 14. ## Investment Trust Status and ISA Compliance The Company is registered as a public limited company in England & Wales under registration number 02902424 and has been accepted by HM Revenue & Customs as an investment trust for accounting periods beginning on or after 1 April 2012, subject to the Company continuing to meet the eligibility conditions of s1158 of the Corporation Tax Act 2010 (as amended) and S.I. 2011/2099. In the opinion of the Directors, the Company's affairs have been conducted in a manner to satisfy these conditions to enable it to continue to qualify as an investment trust for the year ended 31 March 2024. The Company intends to manage its affairs so that its shares will be qualifying investments for the stocks and shares component of an Individual Savings Account ("ISA"). ## Capital Structure During the year ended 31 March 2024 the Company bought back into treasury 3,702,011 (2023 - 2,127,206) Ordinary shares. This was equivalent to 6.6% of the Company's issued share capital (excluding treasury shares) at 1 April 2023 (2022 - 3.7%). As at 31 March 2024, the Company's issued share capital consisted of 52,107,910 Ordinary shares (2023 - 55,809,921 Ordinary shares) with voting rights, each share holding one voting right in the event of a poll, and an additional 6,962,230 (2023 - 3,260,219) Ordinary shares in treasury, with no voting rights or entitlement to receive dividends. Between 1 April 2024 and 13 June 2024 as the latest practicable date prior to approval of this Report, an additional 564,198 Ordinary shares were bought back resulting in the Company's issued share capital consisting of 51,543,712 Ordinary shares and an additional 7,526,428 shares in treasury. Ordinary shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary shares carry a right to receive dividends. On a winding up, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings. There are no restrictions on the transfer of Ordinary shares in the Company other than certain restrictions which may from time to time be imposed by law and regulation. ## Manager and Company Secretaries The Company has appointed the Manager (see Glossary on page 99) as its alternative investment fund manager, to provide investment management, risk management, promotional activities and administration and company secretarial services to the Company. The Company's portfolio is managed by the Investment Manager (see Glossary on page 99) by way of a group delegation agreement in place between the Manager and Investment Manager. In addition, the Manager has sub-delegated administrative and secretarial services to abrdn Holdings Limited and promotional activities to abrdn Investments Limited. Under the terms of the management agreement ("MA"), with effect from 1 April 2023, annual investment management fees are calculated as 0.80% of the Company's net assets up to £300m and 0.60% of net assets above £300m. Until 31 March 2023, annual investment management fees were calculated and charged on the same basis as above, other than the rate was 0.85% of the Company's net assets up to £350m and 0.70% of net assets above £350m. There is a rebate for any fees received in respect of any investments by the Company in investment vehicles managed by abrdn. The MA is terminable by either party on not less than six months' notice. In the event of termination on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period. The fees, and other expenses, payable to abrdn during the year ended 31 March 2024 are disclosed in Notes 4 and 5 to the Financial Statements. The investment management fees are chargeable 100% to revenue. ## Corporate Governance The Company is committed to high standards of corporate governance and its Statement of Corporate Governance is set out on page 39. ## Directors The Board consisted of a non-executive Chairman and three non-executive Directors, all of whom served throughout the year under review. The Senior Independent Director was David Simpson, the Chairman of the Audit Committee was Andrew Robson and the Chairman of the Management Engagement Committee was Rebecca Donaldson. abrdn New India Investment Trust plc --- # Board Diversity The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow it to fulfil its obligations. The Board also recognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, socio-economic background or disability in considering the appointment of its Directors. The Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment. In doing so, the Board will take account of the three targets set out in the FCA's Listing Rules, which are set out in the tables below. The Board has resolved that the Company's year end date is the most appropriate date for disclosure purposes. The following information has been provided by each Director through the completion of questionnaires. There have been no changes since the year end as at the date of approval of this Report. Table for reporting on gender as at 31 March 2024 | | Number of Board members | Percentage of the Board | Number of senior positions on the Board (CEO, CFO, Chair and SID) | Number in executive management | Percentage of executive management | | --- | --- | --- | --- | --- | --- | | Men | 3 | 75% | 2 | n/a (note 3) | n/a (note 3) | | Women | 1 | 25% (note 1) | - | | | | Not specified/prefer not to say | - | - | - | | | Table for reporting on ethnic background as at 31 March 2024 | | Number of Board members | Percentage of the Board | Number of senior positions on the Board (CEO, CFO, Chair and SID) | Number in executive management | Percentage of executive management | | --- | --- | --- | --- | --- | --- | | White British or other White (including minority-white groups) | 4 | 100% | 100% | n/a (note 3) | n/a (note 3) | | Minority ethnic | - | 0% (note 2) | | | | | Not specified/prefer not to say | - | 0% | - | | | 1. Does not meet the target that at least 40% of Directors are women as set out in FCA Listing Rule R 9.8.6R (9)(a)(i) 2. Does not meet the target that at least one Director is from a minority ethnic background as set out in FCA Listing Rule 9.8.6R (9)(a)(iii) 3. This column is not applicable as the Company is externally managed and does not have any executive staff, specifically it has neither a CEO nor CFO. The Company considers that the roles of Chairman of the Board, Senior Independent Director and Chairs of the Board Committees are senior board positions. Rebecca Donaldson chairs the Management Engagement Committee and therefore the Board considers that, accordingly, the Company effectively meets the requirement that at least one of the senior board positions is held by a woman. abrdn New India Investment Trust plc --- # Directors' Report ## Continued As shown in the above tables, the Company has not as yet met the targets set out in the FCA's Listing Rules 9.8.6R (9)(a)(i) and LR 9.8.6R (9)(a)(iii). The Board considers its normal size of four Directors to be appropriate for an investment trust, and retirement of each Director at the AGM following the ninth anniversary of their appointment to be an appropriate individual tenure. While the targets for diversity are inevitably more challenging to achieve for a smaller board with infrequent appointment opportunities, the Board is fully supportive of the principles behind the targets and these will be carefully considered in all future appointments. The biographical details of the Directors are included on pages 30 and 31 and the most recent Board appointment was in August 2022. ## Chairman and Senior Independent Directors The Chairman is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting a culture of openness and debate. The Chairman facilitates the effective contribution and encourages active engagement by each Director. In conjunction with the Company Secretary, the Chairman ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chairman acts upon the results of the Board evaluation process by recognising strengths and addressing any weaknesses and also ensures that the Board engages with major shareholders and that all Directors understand shareholder views. The Senior Independent Director acts as a sounding board for the Chairman and acts as an intermediary for other directors, when necessary. Working closely with the Nomination Committee, the Senior Independent Director takes responsibility for an orderly succession process for the Chairman and leads the annual appraisal of the Chairman's performance. The Senior Independent Director is also available to shareholders to discuss any concerns they may have. The names, biographies and contribution of each of the Directors are shown on pages 30 and 31 and indicate their range of experience as well as length of service. Each Director has the requisite high level and range of business and financial experience which enables the Board to provide clear and effective leadership and proper stewardship of the Company. Michael Hughes, Rebecca Donaldson, David Simpson and Andrew Robson, each being eligible, retire and offer themselves for individual re-election as Directors of the Company. The Board as a whole believes that each Director remains independent of the Manager and free of any relationship which could materially interfere with the exercise of his or her independent judgement on issues of strategy, performance, resources and standards of conduct and confirms that, following formal performance evaluations, the individuals' performance continues to be effective and demonstrates commitment to the role. The Directors attended scheduled Board and Committee meetings during the year ended 31 March 2024 as follows (with their eligibility to attend the relevant meeting in brackets): | Director | Board and Committee Meetings | Audit Committee Meetings | Management Engagement Committee Meetings | Nomination Committee Meetings | | --- | --- | --- | --- | --- | | Michael Hughes | 7 (7) | 3 (3) | 1 (1) | 2 (2) | | David Simpson | 7 (7) | 3 (3) | 1 (1) | 2 (2) | | Andrew Robson | 7 (7) | 3 (3) | 1 (1) | 2 (2) | | Rebecca Donaldson | 7 (7) | 3 (3) | 1 (1) | 2 (2) | The Board has adopted a policy that all Directors, including the Chairman, shall not serve for more than nine years from the date of their initial date of appointment as a Director of the Company unless in relation to exceptional circumstances. The Board therefore has no hesitation in recommending, at the next AGM, the individual re-elections of Michael Hughes, Rebecca Donaldson, David Simpson and Andrew Robson as Directors of the Company. ## Directors' Insurances and Indemnities The Company maintains insurance in respect of Directors' and Officers' liabilities in relation to their acts on behalf of the Company. Furthermore, each Director of the Company is entitled to be indemnified out of the assets of the Company to the extent permitted by law against all costs, charges, losses, expenses and liabilities incurred by them in the actual or purported execution and/or discharge of their duties and/or the exercise or purported exercise of their powers and/or otherwise in relation to or abrdn New India Investment Trust plc --- in connection with their duties, powers or office. These rights are included in the Articles of Association of the Company and the Company has granted deeds of indemnities to each Director on this basis. ## Management of Conflicts of Interest and Anti-Bribery Policy The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors prepare a list of other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his/her connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with his/her wider duties is affected. Each Director is required to notify the Company Secretaries of any potential, or actual, conflict situations which will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting. No Director has a service contract with the Company although Directors are issued with letters of appointment upon taking up office. Other than the deeds of indemnity referred to above, there were no contracts with the Company during, or at the end of the year, in which any Director was interested. The Board takes a zero-tolerance approach to bribery and has adopted appropriate procedures designed to prevent bribery. abrdn also takes a zero-tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption. In relation to the corporate offence of failing to prevent tax evasion, it is the Company's policy to conduct all business in an honest and ethical manner. The Company takes a zero-tolerance approach to facilitation of tax evasion whether under UK law or under the law of any foreign country and is committed to acting professionally, fairly and with integrity in all its business dealings and relationships. ## Board Committees The Directors have appointed a number of Committees as set out below. Copies of each Committee's terms of reference, which define its responsibilities and duties, are available on the Company's website or from the Company Secretaries, on request. ## Audit Committee The Audit Committee's Report is on pages 40 to 43. ## Management Engagement Committee The Board has established a Management Engagement Committee comprising all of the Directors, which was chaired throughout the year by Rebecca Donaldson. The Committee is responsible for reviewing matters concerning the management agreement which exists between the Company and the Manager together with the promotional activities programme operated by the Manager to which the Company contributes. The terms and conditions of the Manager's appointment, including an evaluation of performance and fees, are reviewed annually and were last considered at the meeting of the Committee in November 2023. In monitoring the performance of the Manager, the Committee considers the investment approach and investment record of the Manager over shorter and longer-term periods, taking into account the Company's performance against the Benchmark and peer group funds. The Committee also reviews the management processes, risk control mechanisms and promotional activities of the Manager. The Committee considers the continuing appointment of the Manager, on the terms agreed, to be in the interests of the shareholders because it believes that the abrdn has the investment management, promotional and associated secretarial and administrative skills required for the effective and successful operation of the Company. ## Nomination Committee The Board has established a Nomination Committee, comprising all of the Directors, which was chaired by Michael Hughes during the year. The Committee is responsible for undertaking an annual evaluation of the Board as well as longer term succession planning and, when appropriate, oversight of appointments to the Board. The Company engaged Lintstock Ltd, an independent external service provider which has no other connection to the Company, to undertake a board evaluation in March 2024. Assisted by Lintstock Ltd, the Board assessed that it had in place the appropriate balance of skills, experience, length of service and knowledge of the Company, while also recognising the advantages of diversity. David Simpson, as the Senior Independent Director, provided feedback to the Chairman. As the Company has no employees and the Board is comprised wholly of non-executive directors and, given the size and nature of the Company, the Board has not abrdn New India Investment Trust plc 35 --- abrdn New India Investment Trust plc # Directors' Report ## Continued established a separate remuneration committee and Directors' fees are determined by the Nomination Committee. ## Accountability and Audit The responsibilities of the Directors and the Auditor, in connection with the financial statements, appear on pages 47 and 53. The Directors who held office at the date of approval of this Directors' Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's Auditor is unaware, and each Director has taken all the steps that he or she could reasonably be expected to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company's Auditor is aware of that information. Additionally, there have been no important events since the year end which warrant disclosure. The Directors review, as applicable, the level of non-audit services provided by the Auditor, together with the Auditor's procedures in connection with the provision of such services. No non-audit services were provided by the auditor during the year or to the date of this Report. The Directors remain satisfied that the Auditor is objective and independent. ## Going Concern In accordance with the Financial Reporting Council's guidance on Going Concern and Liquidity Risk, the Directors have reviewed the Company's ability to continue as a going concern. The Company's assets consist substantially of a portfolio of quoted securities which in most circumstances are realisable within a short timescale. The Directors are mindful of the principal risks and uncertainties disclosed on pages 14 to 16 and the financial risks in Note 17 to the financial statements and have reviewed income forecasts detailing revenue and expenses for at least 12 months from the date of this Report. Accordingly, the Directors believe that, the Company has adequate financial resources to continue in operational existence for the foreseeable future and for at least 12 months from the date of this Report. In August 2022, the Company entered into a three-year, £30 million revolving credit facility (the "Facility") with Royal Bank of Scotland International Limited (London Branch), part of NatWest Group plc, of which £26 million was drawn down at 31 March 2024 (2023 - £30 million). The Board has set limits for borrowing and regularly reviews the level of any gearing and compliance with banking covenants. In advance of expiry of the Facility in 2025, the Company will enter negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access a facility. However, should these terms not be forthcoming, any outstanding borrowing would be repaid through the proceeds of equity sales. The results of stress testing prepared by the Manager, which models a sharp decline in market levels and income, demonstrated that the Company had the ability to raise sufficient funds so as to both pay expenses and remain within its debt covenants, and to continue to meet its liabilities as they fall due for at least 12 months from the date of this Report. ## Responsible Investment The Board is aware of its duty to act in the interests of the Company. The Board acknowledges that there are risks associated with investment in companies which fail to conduct business in a socially responsible manner. Responsibility for actively monitoring the sustainability investing activities of portfolio companies has been delegated by the Board to the Manager which has sub-delegated that authority to the Investment Manager. Further information may be found at: www.abrdn.com/en-gb/seeing-things-differently ## Relations with Shareholders The Directors place great importance on communication with shareholders. The Annual Report is widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up-to-date information on the Company through its website, abrdnnewindia.co.uk, or via the abrdn's Customer Services Department. The Company responds to letters from shareholders on a wide range of issues (see Additional Shareholder Information on page 101). The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the management group (either the Company Secretaries or abrdn) in situations where direct communication is required and representatives from the Board offer to meet with major shareholders on an annual basis in order to gauge their views. --- In addition, members of the Board may accompany the Manager when undertaking meetings with institutional shareholders. The Company Secretaries only act on behalf of the Board, not the Manager, and there is no filtering of communication. At each Board meeting the Board receives full details of any communication from shareholders to which the Chairman responds, as appropriate, on behalf of the Board. The Notice of AGM included within the Annual Report is normally sent out at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board and Manager prior to the Company's AGM. ## Substantial Interests The Company had been notified of the following share interests above 3% in the Company as at 31 March 2024: | Shareholder | Number of shares held | % held | | --- | --- | --- | | City of London Investment Management | 7,188,048 | 13.8 | | Lazard Asset Management | 6,999,713 | 13.4 | | Clients of Interactive Investor (execution only) | 5,554,376 | 10.7 | | Clients of abrdn | 5,157,120 | 9.9 | | Clients of Hargreaves Lansdown (execution only) | 4,215,017 | 8.1 | | Allspring Global Investments | 3,139,451 | 6.0 | | 1607 Capital Partners | 2,137,877 | 4.1 | The above interests at 31 March 2024 were unchanged at the date of approval of this Report other than in relation to clients of abrdn, which advised the Company on 19 April 2024 of a holding of 5,188,120 shares, equivalent to 10.0% of the Company's shares in issue (excluding treasury shares) and City of London Investment Management, which advised the Company on 28 May 2024 of a holding of 7,232,938 shares, equivalent to 14.0% of the Company's shares in issue (excluding treasury shares). ## Annual General Meeting The AGM will be held on 20 September 2024 and the Notice of AGM and related notes may be found on pages 94 to 98. Resolutions relating to the following items will be proposed at the AGM as special business. ## Share Repurchases (Resolution 8) At the AGM held on 27 September 2023, shareholders approved the renewal of the authority for the Company to repurchase its Ordinary shares. The principal aim of a share buy back facility is to reduce the volatility in the discount. In addition, the purchase of shares, when they are trading at a discount, should result in an increase in the NAV per share for the remaining shareholders. This authority, if conferred, will only be exercised if to do so would result in an increase in the NAV per share for the remaining shareholders, and if it is in the best interests of shareholders generally. Any purchase of shares will be made within guidelines established from time to time by the Board. It is proposed to seek shareholder authority to renew this facility for another year at the AGM. Under the Listing Rules, the maximum price that may be paid on the exercise of this authority must not exceed the higher of: (i) 105% of the average of the middle market quotations for the shares over the five business days immediately preceding the date of purchase; and (ii) the higher of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out. The minimum price which may be paid is 25p per share. Shares which are purchased under this authority will either be cancelled or held as treasury shares. Renewal of the authority to buy back shares is sought at the AGM as the Board considers that this mechanism has assisted in lowering the volatility of the discount reflected in the Company's share price and is also accretive, in NAV terms, for continuing shareholders. Special resolution 8 in the Notice of AGM will, if passed, renew the authority to purchase in the market a maximum of 14.99% of shares in issue as at 13 June 2024, being the nearest practicable date to the approval of this Report (equivalent to approximately 7.7 million Ordinary shares). Such authority will expire on the date of the AGM in 2025 or on 30 September 2025, whichever is earlier. This means in effect that the authority will have to be renewed at the next AGM, or earlier, if the authority has been exhausted. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Directors' Report Continued ## Issue of Shares (Resolutions 9 and 10) Ordinary resolution 9 in the Notice of AGM will, if passed, renew the authority to allot unissued share capital up to an aggregate of 10%, equivalent to approximately 5.1 million Ordinary shares, of the Company's existing issued share capital, excluding treasury shares, as at 13 June 2024, being the nearest practicable date to the approval of this Report). Such authority will expire on the date of the AGM in 2025 or on 30 September 2025, whichever is earlier, which means that the authority will have to be renewed at the next AGM or, earlier, if the authority has been exhausted. When shares are to be allotted for cash, the Companies Act 2006 (the "Act") provides that existing shareholders have pre-emption rights and that the new shares must be offered first to such shareholders in proportion to their existing holding of shares. However, shareholders can, by Special resolution, authorise the Directors to allot shares otherwise than by a pro rata issue to existing shareholders. Special resolution 10 will, if passed, give the Directors power to allot for cash equity securities up to 10% (equivalent to approximately 5.1 million Ordinary shares), of the Company's existing issued share capital as at the date of 13 June 2024, being the latest practicable date prior to the approval of this Report), as if Section 561(1) of the Act did not apply. This is the same nominal amount of share capital which the Directors are seeking the authority to allot pursuant to resolution 9. This authority will expire on the date of the AGM in 2025 or on 30 September 2025, whichever is earlier, which means that the authority will have to be renewed at the next AGM or, earlier, if the authority has been exhausted. This authority will not be used in connection with a rights issue by the Company. The Company is permitted to buy back and hold shares in treasury and then sell them at a later date for cash, rather than cancelling them. The Treasury Share Regulations require such sale to be on a pre-emptive, pro rata, basis to existing shareholders unless shareholders agree by Special resolution to disapply such pre-emption rights. Accordingly, in addition to giving the Directors power to allot unissued Ordinary share capital on a non pre-emptive basis, resolution 10, if passed, will give the Directors authority to sell Ordinary shares from treasury on a non pre-emptive basis. No dividends may be paid on any shares held in treasury and no voting rights will attach to such shares. The benefit of the ability to hold treasury shares is that such shares may be resold. This should give the Company greater flexibility in managing its share capital and improve liquidity in its shares. The Board would only expect to issue new Ordinary shares or sell Ordinary shares from treasury at a price per Ordinary share which represented a premium to the NAV per share. It is also the intention of the Board that sales from treasury would only take place when the Board believes that to do so would assist in the provision of liquidity to the market. The Directors intend to use the authorities given by resolutions 9 and 10 to allot shares, or sell shares from treasury, and disapply pre-emption rights only in circumstances where this will be clearly beneficial to shareholders as a whole. The issue proceeds would be available for investment in line with the Company's investment policy. ## Recommendation The Board considers all of the Resolutions to be put to shareholders at the AGM to be in the best interests of the Company and its members as a whole and are likely to promote the success of the Company for the benefit of its members as a whole. Accordingly, the Board unanimously recommends that shareholders should vote in favour of the resolutions to be proposed at the Annual General Meeting, as they intend to do in respect of their own shareholdings, amounting to 20,446 Ordinary shares. ## Additional Information Where not provided elsewhere in the Directors' Report, the following provides the additional information required to be disclosed by The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The Company is not aware of any significant agreements to which it is a party, apart from the management agreement, that take effect, alter or terminate upon a change of control of the Company following a takeover. Other than the management agreement with the Manager, further details of which are set out on page 32, the Company is not aware of any contractual or other agreements which are essential to its business which might reasonably be expected to have to been disclosed in the Directors' Report. The financial risk management objectives and policies arising from its financial instruments and the exposure of the Company to risk are disclosed in Note 17 to the Financial Statements. Michael Hughes, Chairman 13 June 2024 38 --- # Statement of Corporate Governance abrdn New India Investment Trust plc (the "Company") is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance and this statement describes how the Company has applied the principles identified in the UK Corporate Governance Code as published in July 2018 (the "UK Code"), which is available on the Financial Reporting Council's (the "FRC") website: frc.org.uk and is applicable for the Company's Year. The Board has also considered the principles and provisions of the AIC Code of Corporate Governance as published in February 2019 (the "AIC Code"). The AIC Code addresses the principles and provisions set out in the UK Code, as well as setting out additional provisions on issues that are of specific relevance to the Company. The AIC Code is available on the AIC's website: theaic.co.uk. The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the FRC, provides more relevant information to shareholders. The Board confirms that, during the year ended 31 March 2024, the Company has complied with the provisions of the AIC Code, and the relevant provisions of the UK Code, except for those provisions relating to: - the composition of the Audit Committee (AIC Code provision 29): the other Directors consider that it is appropriate for the Chairman of the Board to be a member of, but not chair, the Audit Committee, due to the Board's small size, the lack of any perceived conflict of interest, and because the other Directors believe that Michael Hughes was independent on appointment and continues to be independent; and - the establishment of a remuneration committee (AIC Code provision 37): for the reasons set out in the AIC Code the Board considers that this provision is not relevant to the position of the Company, being an externally managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of this provision. Further information on how the Company has applied the AIC Code, the UK Code, the Companies Act 2006 and the FCA's DTR 7.2.6 can be found in the Annual Report as follows: - the composition and operation of the Board and its Committees are detailed on pages 35 and 36 and on page 40 in respect of the Audit Committee; - the Board's policy on diversity and information on Board diversity is on page 33; - the Company's approach to internal controls and risk management is detailed on page 41; - the contractual arrangements with the Manager are set out on page 32 while details of the annual assessment of the Manager may be found on page 35; - the Company's capital structure and voting rights are summarised on page 32; - the substantial interests disclosed in the Company's shares are listed on page 37; - the rules concerning the appointment and replacement of Directors are contained in the Company's Articles of Association and are summarised on page 44. There are no agreements between the Company and its Directors concerning compensation for loss of office; and - the powers to issue or buy back the Company's ordinary shares, which are sought annually, and any amendments to the Company's Articles of Association require a special resolution (75% majority) to be passed by shareholders and information on these resolutions may be found on pages 37 and 38. Michael Hughes, Chairman 13 June 2024 abrdn New India Investment Trust plc 39 --- # Audit Committee's Report The Audit Committee presents its Report for the year ended 31 March 2024. ## Committee Composition The Directors have appointed an Audit Committee (the "Committee") consisting of the whole Board, which was chaired by Andrew Robson throughout the year. The other members of the Committee consider that it is appropriate for the Chairman of the Board to be a member of, but not chair, the Committee. The Chairman of the Board possesses significant financial experience which the other Committee members consider to be valuable. The Board is small and, if the Chairman of the Board were to be excluded, the Committee would comprise only three Directors which may lead to quorum issues if decisions are required at short notice. In addition, the other Committee members are satisfied that there is no conflict of interest arising and value the input of the Chairman of the Board to the Committee's deliberations. The Directors have satisfied themselves both that at least one of the Committee's members has recent and relevant financial experience (Andrew Robson is a member of the Institute of Chartered Accountants in England and Wales), and that the Committee as a whole possesses competence relevant to the investment trust sector. ## Role of the Audit Committee The principal function of the Committee is to assist the Board in relation to the reporting of financial information, the review of financial controls and the management of risk. The Committee meets not less than twice each year, in line with the cycle of annual and half-yearly reports, which is considered by the Directors to be a frequency appropriate to the size and complexity of the Company. The Committee has defined terms of reference which are reviewed and re-assessed for their adequacy on an annual basis. Copies of the terms of reference are available from the Company's website or from the Company Secretaries, on request. In summary, the Committee's main functions are: - to review and monitor the internal control systems and risk management systems (including review of non-financial risks) on which the Company is reliant; - to consider annually whether there is a need for the Company to have its own internal audit function; - to review and monitor the integrity of the half-yearly report and annual financial statements of the Company; - to review, and report to the Board on, the significant financial reporting issues and judgements made in connection with the preparation of the Company's financial statements, half-yearly reports, announcements and related formal statements; - to review the content of the Annual Report and advise the Board on whether, taken as a whole, it is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy; - to meet with the Auditor to review their proposed audit programme of work and the findings of the Auditor. The Committee shall also use this as an opportunity to assess the effectiveness of the audit process; - to develop and implement policy on the engagement of the Auditor to supply non-audit services. During the year under review, no non-audit services were provided to the Company by KPMG LLP. All non-audit services must be approved in advance by the Committee and will be reviewed in light of statutory requirements to maintain the Auditor's independence; - to review a statement from the Manager detailing the arrangements in place within abrdn whereby its staff may, in confidence, escalate concerns about possible improprieties in matters of financial reporting or other matters (whistleblowing); - to review and approve the remuneration and terms of engagement of the Auditor; - to monitor and review annually the Auditor's independence, objectivity, effectiveness, resources and qualification; - to monitor the requirement for rotation of the Auditor and to oversee any tender for the external audit of the Company; - to keep under review the appointment of the Auditor and to recommend to the Board and shareholders the reappointment of the existing auditor or, if appropriate, the appointment of a new Auditor; and - to evaluate its own performance each year, in relation to discharging its main functions, by means of a section devoted to the Committee within the Directors' annual self-evaluation. abrdn New India Investment Trust plc --- # Activities during the Year The Committee met on three occasions during the year to consider the Annual Report, the Half-Yearly Report and the Company's system of risk management and internal control. Reports from abrdn's internal audit, business risk and compliance departments were considered by the Committee at these meetings. # Review of Internal Controls Systems and Risk Management The Board is ultimately responsible for the Company's system of internal control and risk management and for reviewing its effectiveness. The Committee confirms that there is a robust process for identifying, evaluating and managing the Company's significant business and operational risks, that it was in place for the year ended 31 March 2024 and up to the date of approval of this Annual Report, that it is regularly reviewed by the Board and accords with the FRC guidance on internal controls. The principal risks and uncertainties facing the Company are identified on pages 14 to 16 of this Report. The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and, to manage its affairs properly, extends to operational and compliance controls and risk management. This includes controls over financial reporting risks related to the preparation of the Annual Report, which are delegated to the Manager as part of the Management Agreement ("MA") and the Committee receives regular reports from the Manager as to how these controls are operating. Internal control and risk management systems are monitored and supported by the Manager's business risk and compliance functions which undertake periodic examination of business processes, including compliance with the terms of the MA, and ensures that any recommendations to improve controls are implemented. Risk is considered in the context of the FRC and the UK Code guidance and includes financial, regulatory, market, operational and reputational risk. Risks are identified and documented through a risk heat-map, which is a pictorial representation of the risks faced by the Company, after taking account of any mitigating controls to minimise the risk, ranked in order of likelihood and impact on the Company. The key components designed to provide effective risk management and internal control are outlined below: - the Manager prepares forecasts and management accounts which allow the Board to assess the Company's activities and review its performance; the emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception; - the Board and Manager have agreed clearly-defined investment criteria, specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board, and there are meetings with the Manager and Investment Manager as appropriate; - as a matter of course, the Manager's compliance department continually reviews the Manager's operations; and - written agreements are in place which specifically define the roles and responsibilities of the Manager and other third-party service providers. The Committee has considered the need for an internal audit function but, due to the delegation of certain business functions to the Manager, has decided to place reliance on abrdn's systems and internal audit procedures, including the ISAE3402 Report, a global assurance standard for reporting on internal controls for service organisations, commissioned by the Manager's immediate parent company, abrdn. At its May 2024 meeting, the Committee carried out an annual assessment of risk management and internal controls for the year ended 31 March 2024 by considering documentation from the Manager, including the internal audit and compliance functions, and taking account of events since 31 March 2024. The system of internal control and risk management is designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, this system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and, by its nature, can only provide reasonable, and not absolute, assurance against misstatement and loss. abrdn New India Investment Trust plc --- # Audit Committee's Report Continued ## External Agencies The Board has contractually delegated to external agencies, including the Manager and other service providers, certain services: the management of the investment portfolio, the depositary services (which include the custody and safeguarding of the assets), the share registration services and the day-to-day accounting and company secretarial requirements. Each of these contracts was entered into after full and proper consideration by the Board of the quality and cost of services offered in so far as they relate to the affairs of the Company. The Committee receives and considers reports from each service provider, including the Manager, on a regular basis. In addition, ad hoc reports and information are supplied to the Board as requested. ## Significant Financial Reporting Issues addressed During its review of the Company's financial statements for the year ended 31 March 2024, the Committee identified one potentially significant financial reporting risk facing the Company which is unchanged from the prior year, namely valuation and existence of investments, as well as several additional risks, which also reflected the Auditor's assessment of the principal financial statement risks affecting the Company as part of the Auditor's planning and reporting of the year end audit. ## Valuation and Existence of Investments The valuation of investments is undertaken in accordance with the accounting policies, disclosed in Notes 2(a) and 2(g) to the financial statements. With reference to the IFRS 13 fair value hierarchy, all of the Company's investments at 31 March 2024 were categorised as Level 1 as they are considered liquid and quoted in active markets. The portfolio is reviewed and verified by the Manager on a regular basis and management accounts including a full portfolio listing are prepared each month and circulated to the Board. BNP Paribas Trust Corporation UK Limited (the "Depositary") has been appointed as depositary to safeguard the assets of the Company. The Depositary checks the consistency and accuracy of its records on a monthly basis and reports its findings to the Manager. Separately, the investment portfolio is reconciled regularly by the Manager. ## Other issues addressed As well as fraud risk and corporate governance and disclosures, the other accounting area of financial reporting particularly considered by the Committee was compliance with Sections 1158 and 1159 of the Corporation Tax Act 2010. Approval of the Company as an investment trust under those sections for financial years commencing on or after 1 April 2012 has been obtained and ongoing compliance with the eligibility criteria is monitored on a regular basis by the Manager and reported to the Directors. In addition the Committee conducted its annual review of the Auditor (see below) and oversaw the transition to a new senior statutory auditor. The Committee also reviewed and discussed with the Manager and Auditor, certain issues in relation to the calculation of Indian capital gains tax. ## Review of Auditor The Committee has reviewed, and considered appropriate, the effectiveness of the Auditor including: - Independence - the Auditor discusses with the Committee, at least annually, the steps it takes to ensure its independence and objectivity and makes the Committee aware of any potential issues, explaining all relevant safeguards; - Quality of audit work - including the ability to resolve issues in a timely manner (identified issues are satisfactorily and promptly resolved), its communications/presentation of outputs (the explanation of the audit plan, any deviations from it and the subsequent audit findings are comprehensive and comprehensible), and working relationship with management (the Auditor has an effective working relationship with the Manager). The Committee was satisfied that the Independent Auditor demonstrated an appropriate level of scepticism of the Manager's judgement - an example was the interpretation of Indian capital gains tax legislation, where the Manager had pursed a prudent approach; and - Quality of people and service - including continuity and succession plans (the audit team is made up of sufficient, suitably experienced staff with provision made for knowledge of the investment trust sector and retention on rotation of the senior statutory auditor). abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Tenure and Reappointment of KPMG LLP as Auditor KPMG has expressed its willingness to be reappointed auditor to the Company. Resolution 7, which is to be put to shareholders at the forthcoming AGM, proposes the reappointment of KPMG as Independent Auditor of the Company, and also seeks authorisation for the Directors to fix KPMG's remuneration for the year to 31 March 2025. Listed companies are required to tender the external audit at least every ten years and change audit firm at least every twenty years. The Committee last undertook an audit tender process in 2016 when KPMG LLP was appointed as auditor in respect of financial years ended on or after 31 March 2017. The Company is required to tender the external audit no later than for the year ending 31 March 2027. In accordance with professional and regulatory standards, the audit director responsible for the audit is rotated at least every five years in order to protect independence and objectivity and to provide fresh challenge to the business. The year ended 31 March 2024 is the first year for which Carla Cassidy has served as the senior statutory auditor. # Andrew Robson Chairman of the Audit Committee 13 June 2024 43 --- # Directors' Remuneration Report This Directors' Remuneration Report comprises three parts: 1. a Remuneration Policy, which is subject to a binding shareholder vote every three years – was most recently approved by shareholders at the AGM on 27 September 2023 where the votes for the relevant resolution, on a poll, were: For – 32,556,121 votes (99.8%); Against – 55,148 votes (0.2%); and Withheld – 28,130 votes. The Remuneration Policy will be put to shareholders again at the AGM in 2026; 2. an annual Implementation Report, which is subject to an advisory vote; and 3. an Annual Statement. The law requires the Company's Auditor to audit certain of the disclosures provided. Where disclosures have been audited, they are indicated as such. The Auditor's opinion is included in their report on pages 48 to 53. The Directors' Remuneration Policy and level of Directors' remuneration are determined by the Nomination Committee, which was chaired by Michael Hughes throughout the year, and comprises all of the Directors. The Remuneration Policy is reviewed by the Nomination Committee on an annual basis. ## Remuneration Policy The Board's policy is that the remuneration of non-executive Directors should be sufficient to attract Directors of the quality required to run the Company successfully. The remuneration should also reflect the nature of the Directors' duties, responsibilities and the value of their time spent and be fair and comparable to that of other investment trusts that are similar in size and have a similar capital structures and investment objectives. ## Appointment - The Company only intends to appoint non-executive Directors. - All the Directors are non-executive appointed under the terms of Letters of Appointment. - Directors must retire and be subject to election, at the first AGM after their appointment, and re-election at least every three years thereafter, although the Board has approved a policy of annual re-election. - New appointments to the Board will be placed on the fee applicable to all Directors at the time of appointment. - No incentive or introductory fees will be paid to encourage a Directorship. - The Directors are not eligible for bonuses, pension benefits, share options, long term incentive schemes or other benefits. - Directors are entitled to reimbursement of out-of-pocket expenses incurred in connection with the performance of their duties, including travel expenses. - The Company indemnifies its Directors for all costs, charges, losses, expenses and liabilities which may be incurred in the discharge of their duties. ## Performance, Service Contracts, Compensation and Loss of Office - The Directors' remuneration is not subject to any performance-related fee. - No Director has a service contract. - No Director was interested in contracts with the Company during the period or subsequently. - The terms of appointment provide that a Director may be removed without notice. - Compensation will not be due upon leaving office. - No Director is entitled to any other monetary payment or to any assets of the Company. ## Statement of Voting at General Meeting At the Company's last AGM, held on 27 September 2023, shareholders approved the Directors' Remuneration Report (other than the Directors' Remuneration Policy) in respect of the year ended 31 March 2023 and the following proxy votes were received on the Resolution: For – 32,556,143 votes (99.8%); Against – 55,146 votes (0.2%); and Withheld – 28,109 votes. The fact that the Remuneration Policy is subject to a binding vote at every third AGM does not imply any change on the part of the Company. The principles remain the same as for previous years. There have been no changes to the Directors' Remuneration Policy during the period of this Report nor are there any proposals for the foreseeable future. 44 abrdn New India Investment Trust plc --- This part of the Remuneration Report provides details of the Company's Remuneration Policy for Directors of the Company. This policy takes into consideration the principles of the UK Corporate Governance Code. No shareholder views were sought in setting the Remuneration Policy although any comments received from shareholders would be considered on an ongoing basis. As the Company has no employees and the Board is comprised wholly of non-executive Directors and, given the size and nature of the Company, the Board has not established a separate Remuneration Committee during the year under review. The Nomination Committee is responsible for determining Directors' remuneration. The Directors' Remuneration Policy was approved by shareholders at the AGM on 27 September 2023. ## Implementation Report The Directors are non-executive and the limit on their aggregate annual fees is set at £200,000 within the Company's Articles of Association. This limit may only be amended by shareholder resolution and a resolution to increase the limit from £150,000 was last approved by shareholders at the AGM in 2018. ## Review of Directors' Fees The levels of fees for the year and the preceding year are set out in the table below. | Year ended | 31 March 2024 £ | 31 March 2023 £ | | --- | --- | --- | | Chairman | 40,000 | 38,000 | | Chairman of Audit Committee | 34,500 | 33,000 | | Director | 30,000 | 29,000 | The Nomination Committee carried out a review of Directors' annual fees during the year and concluded that there should be no change for the year to 31 March 2025. There are no further fees to disclose as the Company has no employees, chief executive or executive directors. ## Spend on Pay As the Company has no employees, the Directors do not consider it appropriate to present a table comparing remuneration paid to employees with distributions to shareholders. The fees paid to Directors are shown in the table below. ## Company Performance During the year the Board carried out a review of investment performance. The graph shows the share price total return (assuming all dividends are reinvested) to Ordinary shareholders compared to the total return from the Benchmark for the ten-year period to 31 March 2024 (rebased to 100 at 31 March 2014). This Benchmark was selected for comparison purposes as it is used by the Board for investment performance measurement. ![img-19.jpeg](img-19.jpeg) ## Fees Payable (Audited) The Directors who served in the year received the fees, as set out in the table below, which excluded employers' National Insurance contributions. | Director | Year ended 31 March 2024 £ | Year ended 31 March 2023 £ | | --- | --- | --- | | Michael Hughes^{A} | 40,000 | 33,803 | | David Simpson | 30,000 | 29,000 | | Andrew Robson^{B} | 34,500 | 21,355 | | Rebecca Donaldson | 30,000 | 29,000 | | Hasan Askari^{C} | n/a | 19,036 | | Stephen White^{C} | n/a | 16,317 | | Total | 134,500 | 148,511 | abrdn New India Investment Trust plc --- # Directors' Remuneration Report Continued ## Directors' Interests in the Company (Audited) The Directors are not required to have a shareholding in the Company. The Directors (including their connected persons) at 31 March 2024 and 31 March 2023 had no interest in the share capital of the Company other than those interests, all of which are beneficial, in the table below, which were also unchanged as at the date of this Report: | | 31 March 2024 Ord. 25p | 31 March 2023 Ord. 25p | | --- | --- | --- | | Michael Hughes | 8,115 | 8,115 | | David Simpson | 3,860 | 3,860 | | Andrew Robson | 4,000 | 4,000 | | Rebecca Donaldson | 4,471 | 4,471 | ## Annual Percentage Change in Directors' Remuneration (Audited) The table below sets out the annual percentage change in Directors' fees for the past year. | | Year ended 31 March 2024 % | Year ended 31 March 2023 % | Year ended 31 March 2022 % | Year ended 31 March 2021 % | | --- | --- | --- | --- | --- | | Michael Hughes A | 18.3 | 22.9 | 1.9 | 1.9 | | David Simpson B | 3.4 | 153.1 | n/a | n/a | | Andrew Robson C | 61.6 | n/a | n/a | n/a | | Rebecca Donaldson D | 3.5 | 5.5 | 74.6 | n/a | | Hasan Askari E | n/a | -47.8 | 1.4 | 1.4 | | Stephen White E | n/a | -46.5 | 1.7 | 1.7 | | Rachel Beagles F | n/a | n/a | n/a | -51.0 | A Appointed as a Director on 7 September 2026 and Chairman on 28 September 2022. B Appointed as a Director on 1 November 2021 and Senior Independent Director on 28 September 2022. C Appointed as a Director on 1 August 2022 and Chairman of the Audit Committee on 28 September 2022. D Appointed as a Director on 1 September 2020. E Retired as a Director on 28 September 2022. F Retired as a Director on 23 September 2020. ## Annual Statement On behalf of the Board and in accordance with Part 2 of Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013, the Board confirms that the above Report on Remuneration Policy and Remuneration Implementation summarises, as applicable, for the year ended 31 March 2024: - the major decisions on Directors' remuneration; - any substantial changes relating to Directors' remuneration made during the year; and - the context in which the changes occurred and in which decisions have been taken. Michael Hughes, Chairman 13 June 2024 abrdn New India Investment Trust plc --- # Statement of Directors' responsibilities in respect of the Annual Report and financial statements The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK-adopted international accounting standards and applicable law. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing these financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable, relevant and reliable; - state whether they have been prepared in accordance with UK adopted international accounting standards; - assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and - use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations or have no realistic alternative but to do so. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website but not for the content of any information included on the website that has been prepared or issued by third parties. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In accordance with Disclosure Guidance and Transparency Rule 4.1.14R, the financial statements will form part of the annual financial report prepared using the single electronic reporting format under the TD ESEF Regulation. The auditor's report on these financial statements provides no assurance over the ESEF format. ## Responsibility Statement of the Directors in respect of the Annual Financial Report We confirm that to the best of our knowledge: - the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and - the strategic report includes a fair review of the development and performance of the business and the position of the issuer, together with a description of the principal risks and uncertainties that they face. We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy. For and on behalf of the Board Michael Hughes, Chairman 13 June 2024 abrdn New India Investment Trust plc --- # Independent Auditor's Report to the Members of abrdn New India Investment Trust plc ## 1 Our opinion is unmodified We have audited the financial statements of abrdn New India Investment Trust plc ("the Company") for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and the related notes, including the accounting policies in note 1. In our opinion the financial statements: - give a true and fair view of the state of Company's affairs as at 31 March 2024 and of its profits for the year then ended; - have been properly prepared in accordance with UK-adopted international accounting standards; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the audit committee. We were first appointed as auditor by the shareholders on 6 September 2016. The period of total uninterrupted engagement is for the eight financial years ended 31 March 2024. We have fulfilled our ethical responsibilities under, and we remain independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided. ## Overview | Materially: | £4.3m (2023: £4m) | | --- | --- | | Financial statements as a whole | 0.9% (2023: 1.0%) of Total Assets | | Key audit matter | vs 2023 | | Recurring risk | Carrying amount of quoted investments | ## 2 Key audit matters: our assessment of risks of material misstatement Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below the key audit matter (unchanged from 2023), in arriving at our audit opinion above, together with our key audit procedures to address this matter and, as required for public interest entities, our results from those procedures. This matter was addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on this matter. abrdn New India Investment Trust plc --- | Carrying amount of quoted investments | The risk | Our response | | --- | --- | --- | | £465.8m (2023: £391.4m) Refer to page 42 (Audit Committee Report), page 61 (accounting policy) and pages 67 and 68 (financial disclosures). | Low risk, high value The Company's portfolio of level 1 quoted investments makes up 98.1% (2023: 97.3%) of the Company's total assets (by value) and is one of the key drivers of results. We do not consider these investments to be at a high risk of significant misstatement, or to be subject to a significant level of judgement because they comprise liquid, quoted investments. However, due to their materiality in the context of the financial statements as a whole, they are considered to be the areas which had the greatest effect on our overall audit strategy and allocation of resources in planning and completing our audit. | We performed the detailed tests below rather than seeking to rely on the Company's controls, because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures below. Our procedures included: • Tests of detail: Agreeing the valuation of 100% of level 1 quoted investments in the portfolio to externally quoted prices; and • Enquiry of Depositary: Agreeing 100% of level 1 quoted investment holdings in the portfolio to independently received third party confirmations from the investment Depositary. • Our results: We found the carrying amount of quoted investments to be acceptable (2023: acceptable). | # 3 Our application of materiality and an overview of the scope of our audit Materiality for the financial statements as a whole was set at £4.3m (2023: £4m), determined with reference to a benchmark of total assets, of which it represents 0.9% (2023: 1.0%). In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. Performance materiality was set at 75% (2023: 75%) of materiality for the financial statements as a whole, which equates to £3.2m (2023: £3.0m). We applied this percentage in our determination of performance materiality because we did not identify any factors indicating an elevated level of risk. We agreed to report to the Audit Committee any corrected or uncorrected identified misstatements exceeding £217,000 (2023: £201,000), in addition to other identified misstatements that warranted reporting on qualitative grounds. Our audit of the Company was undertaken to the materiality level specified above and was performed by a single audit team. The scope of the audit work performed was fully substantive as we did not rely upon the Company's internal control over financial reporting. ![img-20.jpeg](img-20.jpeg) abrdn New India Investment Trust plc --- # Independent Auditor's Report to the Members of abrdn New India Investment Trust plc ## Continued ## 4 Going concern The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period"). We used our knowledge of the Company, its industry, and the general economic environment to identify the inherent risks to its business model and analysed how those risks might affect the Company's financial resources or ability to continue operations over the going concern period. The risks that we considered most likely to adversely affect the Company's available financial resources and metrics relevant to debt covenants over this period were: - The impact of a significant reduction in the valuation of investments and the implications for the Company's debt covenants; - The liquidity of the investment portfolio and its ability to meet the liabilities of the Company as and when they fall due; and - The operational resilience of key service organisations. We considered whether these risks could plausibly affect the liquidity or covenant compliance in the going concern period by assessing the degree of downside assumption that, individually and collectively, could result in a liquidity issue, taking into account the Company's current and projected cash and liquid investment position. We considered whether the going concern disclosure in note 2(a) to the financial statements gives a full and accurate description of the Directors' assessment of going concern, including the identified risks, dependencies, and related sensitivities. Our conclusions based on this work: - we consider that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate; - we have not identified, and concur with the Directors' assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period; - we have nothing material to add or draw attention to in relation to the Directors' statement in Note 2 (a) to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Company's use of that basis for the going concern period, and we found the going concern disclosure in note 2 (a) to be acceptable; and - the related statement under the Listing Rules set out on page 36 and is materially consistent with the financial statements and our audit knowledge. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation. ## 5 Fraud and breaches of laws and regulations – ability to detect ### Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Enquiring of Directors as to the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud; - Assessing the segregation of duties in place between the Directors, the Administrator and the Company's Investment Manager; and - Reading Board and Audit Committee minutes. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular to the risk that management may be in a position to make inappropriate accounting entries. We evaluated the design and implementation of the relevant controls over journal entries and other adjustments and made inquiries of the Administrator about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. abrdn New India Investment Trust plc --- Based on these procedures, we selected journal entries for testing, which included material post-closing journal entries. On this audit we do not believe there is fraud risk related to revenue recognition because the revenue is non-judgemental and straightforward, with limited opportunity for manipulation. We did not identify any significant unusual transactions or additional fraud risks. ## Identifying and responding to risks of material misstatement related to compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the Directors, the Investment Manager and the Administrator (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. As the Company is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity's procedures for complying with regulatory requirements. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, and its qualification as an Investment Trust under UK taxation legislation, any breach of which could lead to the Company losing various deductions and exemptions from UK corporation tax, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: money laundering, data protection, bribery and corruption legislation and certain aspects of company legislation recognising the financial and regulated nature of the Company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and the Administrator and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. ## Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations ## 6 We have nothing to report on the other information in the Annual Report The Directors are responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information. ## Strategic report and Directors' report Based solely on our work on the other information: - we have not identified material misstatements in the Strategic Report and the Directors' Report; - in our opinion the information given in those reports for the financial year is consistent with the financial statements; and - in our opinion those reports have been prepared in accordance with the Companies Act 2006. abrdn New India Investment Trust plc --- # Independent Auditor's Report to the Members of abrdn New India Investment Trust plc Continued ## Directors' Remuneration Report In our opinion the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. ## Disclosures of emerging and principal risks and longer-term viability We are required to perform procedures to identify whether there is a material inconsistency between the Directors' disclosures in respect of emerging and principal risks and the viability statement, and the financial statements and our audit knowledge. Based on those procedures, we have nothing material to add or draw attention to in relation to: - the Directors' confirmation within the Viability Statement (on page 18) that they have carried out a robust assessment of the emerging and principal risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity; - the Principal risks and uncertainties disclosures describing these risks and how emerging risks are identified, and explaining how they are being managed and mitigated; and - the Directors' explanation in the viability statement of how they have assessed the prospects of the Company, over what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions. We are also required to review the Viability Statement, set out on page 18, under the Listing Rules. Based on the above procedures, we have concluded that the above disclosures are materially consistent with the financial statements and our audit knowledge. Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgments that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the Company's longer-term viability. ## Corporate governance disclosures We are required to perform procedures to identify whether there is a material inconsistency between the directors' corporate governance disclosures and the financial statements and our audit knowledge. Based on those procedures, we have concluded that each of the following is materially consistent with the financial statements and our audit knowledge: - the Directors' statement that they consider that the annual report and financial statements taken as a whole is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy; - the section of the annual report describing the work of the Audit Committee, including the significant issues that the audit committee considered in relation to the financial statements, and how these issues were addressed; and - the section of the annual report that describes the review of the effectiveness of the Company's risk management and internal control systems. We are required to review the part of the Corporate Governance Statement relating to the Company's compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect. ## 7 We have nothing to report on the other matters on which we are required to report by exception Under the Companies Act 2006, we are required to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. We have nothing to report in these respects. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # 8 Respective responsibilities ## Directors' responsibilities As explained more fully in their statement set out on page 47, the Directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. ## Auditor's responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. The Company will be including these financial statements in an annual financial report prepared using the single electronic reporting format specified in the TD ESEF Regulation. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with that format. # 9 The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Carla Cassidy (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 15 Canada Square LONDON E14 5GL 13 June 2024 abrdn New India Investment Trust plc --- # Financial Statements ebreh New India Investment Trust --- # Statement of Comprehensive Income | | Notes | Year ended31 March 2024 | | | Year ended31 March 2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Revenue return£'000 | Capital return£'000 | Total£'000 | Revenue return£'000 | Capital return£'000 | Total£'000 | | Income | | | | | | | | | Income from investments | 3 | 4,722 | - | 4,722 | 5,725 | 302 | 6,027 | | Interest | 3 | 181 | - | 181 | 96 | - | 96 | | Gains/(losses) on investments held at fair value through profit or loss | 10(a) | - | 106,805 | 106,805 | - | (35,669) | (35,669) | | Currency losses | | - | (403) | (403) | - | (432) | (432) | | | | 4,903 | 106,402 | 111,305 | 5,821 | (35,799) | (29,978) | | Expenses | | | | | | | | | Investment management fees | 4 | (2,964) | - | (2,964) | (3,284) | - | (3,284) | | Administrative expenses | 5 | (957) | - | (957) | (1,028) | - | (1,028) | | | | (3,921) | - | (3,921) | (4,312) | - | (4,312) | | Profit/(loss) before finance costs and taxation | | 982 | 106,402 | 107,384 | 1,509 | (35,799) | (34,290) | | Finance costs | 6 | (2,544) | - | (2,544) | (1,309) | - | (1,309) | | (Loss)/profit before taxation | | (1,562) | 106,402 | 104,840 | 200 | (35,799) | (35,599) | | Taxation | 7 | (472) | (13,346) | (13,818) | (537) | 1,870 | 1,333 | | (Loss)/profit for the year | | (2,034) | 93,056 | 91,022 | (337) | (33,929) | (34,266) | | (Loss)/return per Ordinary share (pence) | 9 | (3.77) | 172.62 | 168.85 | (0.59) | (59.41) | (60.00) | The Company does not have any income or expense that is not included in "(Loss)/profit for the year", and therefore this represents the "Total comprehensive income for the year", as defined in IAS 1 (revised). All of the (loss)/profit and total comprehensive income is attributable to the equity holders of the Company. There are no non-controlling interests. The total column of this statement represents the Statement of Comprehensive Income of the Company, prepared in accordance with UK-adopted International Accounting Standards. The revenue and capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies (see Note 2 to the Financial Statements). All items in the above statement derive from continuing operations. The accompanying notes are an integral part of these financial statements. abrdn New India Investment Trust plc --- # Statement of Financial Position | | Notes | As at 31 March 2024 £'000 | As at 31 March 2023 £'000 | | --- | --- | --- | --- | | Non-current assets | | | | | Investments held at fair value through profit or loss | 10 | 465,789 | 391,371 | | Current assets | | | | | Cash at bank | | 6,452 | 7,178 | | Other receivables | 11 | 2,403 | 3,715 | | | | 8,855 | 10,893 | | Current liabilities | | | | | Bank loan | 12(a) | (25,953) | (29,918) | | Other payables | 12(b) | (2,231) | (3,279) | | | | (28,184) | (33,197) | | Net current liabilities | | (19,329) | (22,304) | | Non-current liabilities | | | | | Deferred tax liability on Indian capital gains | 13 | (19,406) | (11,148) | | Net assets | | 427,054 | 357,919 | | Share capital and reserves | | | | | Ordinary share capital | 14 | 14,768 | 14,768 | | Share premium account | | 25,406 | 25,406 | | Capital redemption reserve | | 4,484 | 4,484 | | Capital reserve | | 384,824 | 313,655 | | Revenue reserve | | (2,428) | (394) | | Equity shareholders' funds | | 427,054 | 357,919 | | Net asset value per Ordinary share (pence) | 16 | 819.56 | 641.32 | The financial statements were approved by the Board of Directors and authorised for issue on 13 June 2024 and were signed on its behalf by: Michael Hughes Chairman The accompanying notes are an integral part of these financial statements. 56 abrdn New India Investment Trust plc --- # Statement of Changes in Equity Year ended 31 March 2024 | | Share capital £'000 | Share premium account £'000 | Capital redemption reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 April 2023 | 14,768 | 25,406 | 4,484 | 313,655 | (394) | 357,919 | | Net gain/(loss) after taxation | - | - | - | 93,056 | (2,034) | 91,022 | | Buyback of share capital to treasury | - | - | - | (21,887) | - | (21,887) | | Balance at 31 March 2024 | 14,768 | 25,406 | 4,484 | 384,824 | (2,428) | 427,054 | Year ended 31 March 2023 | | Share capital £'000 | Share premium account £'000 | Special reserve £'000 | Capital redemption reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 April 2022 | 14,768 | 25,406 | 9,932 | 4,484 | 349,462 | (57) | 403,995 | | Net loss after taxation | - | - | - | - | (33,929) | (337) | (34,266) | | Buyback of share capital to treasury | - | - | (9,932) | - | (1,878) | - | (11,810) | | Balance at 31 March 2023 | 14,768 | 25,406 | - | 4,484 | 313,655 | (394) | 357,919 | The accompanying notes are an integral part of these financial statements. abrdn New India Investment Trust plc --- # Statement of Cash Flows | | Notes | Year ended 31 March 2024 £'000 | Year ended 31 March 2023 £'000 | | --- | --- | --- | --- | | Cash flows from operating activities | | | | | Dividend income received | | 4,722 | 4,817 | | Interest income received | | (4) | (16) | | Investment management fee paid | | (3,203) | (3,057) | | Other cash (expenses)/receipts | | (970) | 692 | | Cash inflow from operations | | 545 | 2,436 | | Interest paid | | (2,248) | (1,189) | | Net cash (outflow)/inflow from operating activities | | (1,703) | 1,247 | | Cash flows from investing activities | | | | | Purchases of investments | | (96,207) | (100,451) | | Sales of investments | | 128,508 | 109,314 | | Indian capital gains tax paid on sales | | (5,088) | (678) | | Net cash inflow from investing activities | | 27,213 | 8,185 | | Cash flows from financing activities | | | | | Buyback of shares | | (21,792) | (11,489) | | Repayment of loan | | (4,000) | - | | Costs associated with loan | | (41) | (105) | | Net cash outflow from financing activities | | (25,833) | (11,594) | | Net decrease in cash and cash equivalents | | (323) | (2,162) | | Cash and cash equivalents at the start of the year | | 7,178 | 9,772 | | Effect of foreign exchange rate changes | | (403) | (432) | | Cash and cash equivalents at the end of the year | 17 | 6,452 | 7,178 | The accompanying notes are an integral part of these financial statements. 58 abrdn New India Investment Trust plc --- # Notes to the Financial Statements For the year ended 31 March 2024 ## 1. Principal activity The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010 ("s1158"). ## 2. Accounting policies (a) **Basis of preparation.** The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with UK-adopted international accounting standards ("IFRS"). The Company adopted all of the IFRS which took effect during the year. The financial statements have also been prepared in accordance with the Companies Act 2006 and the Statement of Recommended Practice (SORP), "Financial Statements of Investment Trust Companies and Venture Capital Trusts," issued in July 2022. The Directors have reviewed the Company's ability to continue as a going concern. The Company's assets consist substantially of a portfolio of quoted securities which in most circumstances are realisable within a short timescale. The Directors are mindful of the principal risks and uncertainties disclosed on pages 14 to 16 and the financial risks disclosed in Note 17 to the financial statements and have reviewed cashflow forecasts detailing revenue and expenses for at least 12 months from the date of this Report. Accordingly, the Directors believe that the Company has adequate financial resources to continue in operational existence for at least 12 months from the date of this Report. In August 2022, the Company entered into a three-year, £30 million revolving credit facility (the "Facility") with Royal Bank of Scotland International Limited (London Branch), part of NatWest Group plc, of which £26m was drawn down at 31 March 2024 (2023 - £30m). The Board has set limits for borrowing and regularly reviews the level of any gearing and compliance with banking covenants. The results of stress testing prepared by the Manager, which models a sharp decline in market levels and income, demonstrated that the Company has the ability to raise sufficient funds so as to both pay expenses and remain within its debt covenants. Having taken these factors into account, the Directors believe that the Company has adequate resources to continue in operational existence and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report. For these reasons, the Company continues to adopt the going concern basis of accounting in preparing the financial statements. **Significant estimates and judgements.** The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates which requires management to exercise its judgement in the process of applying the accounting policies. The Directors do not believe that any accounting judgements or estimates have been applied to these financial statements that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the next financial year. The Company considers the selection of Sterling as its functional currency to be a key judgement. **Functional currency.** The Company's investments are made in Indian Rupee and US Dollar, however the Board considers the Company's functional currency to be Sterling. In arriving at this conclusion, the Board considered that the shares of the Company are listed on the London Stock Exchange, it is regulated in the United Kingdom, principally having its shareholder base in the United Kingdom and also pays expenses in Sterling, as it would dividends, where declared by the Company. abrdn New India Investment Trust plc 59 --- # Notes to the Financial Statements Continued New and amended accounting standards and interpretations. The Company applied certain Standards and Amendments, which are effective for annual periods beginning on or after 1 January 2023. The adoption of these Standards and Amendments did not have a material impact on the financial results of the Company. The nature is described below: - IAS 1 Amendments (Disclosure of Accounting Policies) - IAS 8 Amendments (Definition of Accounting Estimates) - IAS 12 Amendments (Deferred Tax related to Assets and Liabilities arising from a Single Transaction) - IAS 12 Amendments (Deferred Tax and OECD Pillar 2 Taxes) At the date of authorisation of these financial statements, the following amendments to Standards and Interpretations were assessed to be relevant and are all effective for annual periods beginning on or after 1 January 2024 and thereafter; - IAS 1 Amendments (Classification of Liabilities as Current or Non-Current) - IAS 1 Amendments (Disclosure of Non-current Liabilities with Covenants) The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective and the Board does not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact the Company's financial results in the period of initial application although there may be revised presentations to the Financial Statements and additional disclosures. (b) Presentation of Statement of Comprehensive Income. In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented in the Statement of Comprehensive Income. (c) Segmental reporting. The Board has considered the requirements of IFRS 8 'Operating Segments' and is of the view that the Company is engaged in a single segment business, which is one of investing in Indian quoted equities and that therefore the Company has only a single operating segment. The Board of Directors, as a whole, has been identified as constituting the chief operating decision maker of the Company. The key measure of performance used by the Board to assess the Company's performance is the total return on the Company's net asset value, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements. (d) Income. Dividends receivable on equity shares are recognised in the Statement of Comprehensive Income on the ex-dividend date, and gross of any applicable withholding tax. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Special dividends are credited to capital or revenue, according to their circumstances. Where a company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in the Statement of Comprehensive Income. Provision is made for any dividends not expected to be received. Interest receivable from cash and short-term deposits is accrued to the end of the financial year. 60 abrdn New India Investment Trust plc --- (e) Expenses and interest payable. All expenses, with the exception of interest expenses, which are recognised using the effective interest method, are accounted for on an accruals basis. Expenses are charged to the revenue column of the Statement of Comprehensive Income except as follows: - expenses which are incidental to the acquisition or disposal of an investment are charged to the capital column of the Statement of Comprehensive Income and separately identified and disclosed in note 10 (b); and - expenses are charged to the capital column of the Statement of Comprehensive Income where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. (f) Taxation. The tax expense represents the sum of the tax currently payable and deferred tax. Tax payable is based on the taxable profit for the year. Taxable profit differs from profit before tax as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the Statement of Financial Position date. Deferred tax. Deferred tax is recognised in respect of all temporary differences at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Statement of Financial Position date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise, using enacted tax rates that are expected to apply at the date the deferred tax position is unwound. (g) Investments. Investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured initially at fair value. Subsequent to initial recognition, investments are recognised at fair value through profit or loss. The Company classifies its investments based on their contractual cash flow characteristics and the Company's business model for managing the assets. The business model, which is the determining feature, is such that the portfolio of investments is managed, and performance and risk is evaluated, on a fair value basis. The Manager is also compensated based on the fair value of the Company's assets. Consequently, all investments are measured at fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured at fair value. For listed investments, this is deemed to be bid market prices or closing prices on a recognised stock exchange. Gains and losses arising from the changes in fair value are included in net profit or loss for the period as a capital item. Transaction costs are treated as a capital cost. (h) Cash and cash equivalents. Cash comprises cash in hand and at banks and short-term deposits. Cash equivalents are short-term, highly-liquid investments that are readily convertible to known amounts of cash, and that are subject to an insignificant risk of changes in value. (i) Other receivables. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments' as other receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. As such they are measured at amortised cost. Other receivables held by the Company do not carry any interest, they have been assessed as not having any expected credit losses over their lifetime due to their short-term nature and low credit risk. abrdn New India Investment Trust plc 61 --- # Notes to the Financial Statements Continued (j) Other payables. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments'. Other payables are non-interest bearing and are stated at amortised cost. (k) Borrowings. Bank loans are initially recognised at cost, being the fair value of the consideration received, net of any issue expenses. Subsequently, they are measured at amortised cost using the effective interest method. Finance charges are accounted for on an accruals basis using the effective interest rate method and are charged 100% to revenue. (l) Nature and purpose of reserves Called-up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the capital redemption reserve. This reserve is not distributable. Share premium account. The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity share capital comprising Ordinary shares of 25p. This reserve is not distributable. Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were redeemed, and subsequently cancelled by the Company, at which point an amount equal to the par value of the Ordinary share capital was transferred from the Ordinary share capital to the capital redemption reserve. This reserve is not distributable. Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any increases and decreases in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. The part of this reserve represented by realised capital gains is available for distribution by way of dividend. Subsequent to the special reserve being extinguished, the capital reserve has been used to fund the share buy-backs by the Company. Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve is distributable by way of dividend. (m) Foreign currency. Overseas monetary assets and liabilities are converted into Sterling at the rate of exchange ruling at the Statement of Financial Position date. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss and recognised in the Statement of Comprehensive Income. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # 3. Income | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Income from investments | | | | Overseas dividends | 4,722 | 6,027 | | Overseas dividends | 4,722 | 6,027 | | Other income | | | | Deposit interest | 172 | 93 | | Other interest | 9 | 3 | | | 181 | 96 | | Total income | 4,903 | 6,123 | # 4. Investment management fees | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Investment management fees | 2,964 | 3,284 | The Company has an agreement with the Manager for the provision of management and secretarial services. During the year, the management fee was payable monthly in arrears and was based on an annual amount of 0.8% up to £300 million and 0.6% thereafter of the Company's net assets (2023 – based on an amount of 0.85% up to £350 million and 0.7% thereafter of the Company's net assets), valued monthly. The management agreement is terminable by either the Company or the Manager on six months' notice. The amount payable in respect of the Company for the year was £2,964,000 (2023 – £3,284,000) and the balance due to the Manager at the year end was £520,000 (2023 – £759,000). All investment management fees are charged 100% to the revenue column of the Statement of Comprehensive Income. 63 --- # Notes to the Financial Statements Continued ## 5. Administrative expenses | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Directors' fees | 135 | 148 | | Promotional activities | 190 | 176 | | Auditor's remuneration: | | | | - fees payable for the audit of the Company's annual financial statements | 70 | 60 | | Legal and advisory fees | 59 | 68 | | Custodian and overseas agents' charges | 319 | 311 | | Depositary fees | 39 | 40 | | Other | 145 | 225 | | | 957 | 1,028 | The Manager supports the Company with promotional activities through its participation in the abrdn Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement during the year were £190,000 (2023 - £176,000) and £98,000 (2023 - £46,000) was due to the Manager at the year end. The only fees paid to KPMG LLP by the Company are the audit fees of £70,000 (2023 - £60,000). The amounts disclosed above for Auditor's remuneration are all shown net of VAT. ## 6. Finance costs | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | In relation to bank loans | 2,544 | 1,309 | Finance costs are charged 100% to revenue as disclosed in the accounting policies. abrdn New India Investment Trust plc --- # 7. Taxation | | 2024 | | | 2023 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | | (a) | Analysis of charge for the year | | | | | | | | | Indian capital gains tax charge on sales | - | 5,088 | 5,088 | - | 936 | 936 | | | Under provision of Indian capital gains tax charged on sales for prior year | - | - | - | - | 577 | 577 | | | Overseas taxation | 472 | - | 472 | 537 | - | 537 | | | Total current tax charge for the year | 472 | 5,088 | 5,560 | 537 | 1,513 | 2,050 | | | Movement in deferred tax liability on Indian capital gains | - | 8,258 | 8,258 | - | (3,383) | (3,383) | | | Total tax charge/(credit) for the year | 472 | 13,346 | 13,818 | 537 | (1,870) | (1,333) | The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Tax Act 1961. The Company has recognised a deferred tax liability of £19,406,000 (2023 - £11,148,000) on capital gains which may arise if Indian investments are sold. On 1 April 2020, the Indian Government withdrew an exemption from withholding tax on dividend income. Dividends are received net of 20% withholding tax and an excess charge of 4%. A further surcharge of either 2% or 5% is applied if the receipt exceeds a certain threshold. Of this total charge, 10% of the withholding tax is irrecoverable with the remainder being offset against the deferred tax liability on Indian capital gains in the first instance where there are capital gains during the year or if not then it is shown in the Statement of Financial Position as an asset due for reclaim. abrdn New India Investment Trust plc --- # Notes to the Financial Statements Continued (b) Factors affecting the tax charge for the year. The tax charged for the year can be reconciled to the profit/(loss) per the Statement of Comprehensive Income as follows: | | 2024 | | | 2023 | | | | --- | --- | --- | --- | --- | --- | --- | | | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | | (Loss)/profit before tax | (1,562) | 106,402 | 104,840 | 200 | (35,799) | (35,599) | | UK corporation tax on profit at the standard rate of 25% (2023 – 19%) | (391) | 26,601 | 26,210 | 38 | (6,802) | (6,764) | | Effects of: | | | | | | | | (Gains)/losses on investments held at fair value through profit or loss not taxable not subject to UK corporation tax | - | (26,702) | (26,702) | - | 6,720 | 6,720 | | Currency losses not taxable | - | 101 | 101 | - | 82 | 82 | | Deferred tax not recognised in respect of tax losses | 1,474 | - | 1,474 | 1,047 | - | 1,047 | | Corporate interest restriction | 93 | - | 93 | - | - | - | | Expenses not deductible for tax purposes | 4 | - | 4 | 3 | - | 3 | | Indian capital gains tax charged on sales | - | 5,088 | 5,088 | - | 936 | 936 | | Under provision of Indian capital gains tax charged on sales for prior year | - | - | - | - | 577 | 577 | | Movement in deferred tax liability on Indian capital gains | - | 8,258 | 8,258 | - | (3,383) | (3,383) | | Irrecoverable overseas withholding tax | 472 | - | 472 | 537 | - | 537 | | Non-taxable dividend income | (1,180) | - | (1,180) | (1,088) | - | (1,088) | | Total tax charge/(credit) | 472 | 13,346 | 13,818 | 537 | (1,870) | (1,333) | (c) At 31 March 2024, the Company had surplus management expenses and loan relationship debits of £39,202,000 (2023 – £33,305,000) with a tax value of £9,801,000 (2023 – £8,326,000) based on enacted tax rates, in respect of which a deferred tax asset has not been recognised. No deferred tax asset has been recognised because the Company is not expected to generate taxable income in the future in excess of the deductible expenses of those future periods. Therefore, it is unlikely that the Company will generate future taxable revenue that would enable the existing tax losses to be utilised. ## 8. Ordinary dividends on equity shares After the payment of operational expenses, there was no revenue available for distribution by way of dividend for the year ended 31 March 2024 (2023 – £nil). 66 abrdn New India Investment Trust plc --- 9. (Loss)/return per Ordinary share | | 2024 | | | 2023 | | | | --- | --- | --- | --- | --- | --- | --- | | | Revenue | Capital | Total | Revenue | Capital | Total | | Net (loss)/profit for the year (£'000) | (2,034) | 93,056 | 91,022 | (337) | (33,929) | (34,266) | | Weighted average number of Ordinary shares in issue | | | 53,907,480 | | | 57,105,465 | | (Loss)/return per Ordinary share (pence) | (3.77) | 172.62 | 168.85 | (0.59) | (59.41) | (60.00) | 10. Investments held at fair value through profit or loss | (a) Valuation | 2024 | 2023 | | --- | --- | --- | | | £'000 | £'000 | | Opening book cost | 296,380 | 293,858 | | Opening investment holdings fair value gains | 94,991 | 146,023 | | Opening valuation | 391,371 | 439,881 | | Movements in the year: | | | | Purchases | 95,183 | 99,528 | | Sales - proceeds | (127,570) | (112,369) | | Gains/(losses) on investments | 106,805 | (35,669) | | Closing valuation | 465,789 | 391,371 | | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Closing book cost | 302,906 | 296,380 | | Closing investment holdings fair value gains | 162,883 | 94,991 | | Closing valuation | 465,789 | 391,371 | The Company generated £127,570,000 (2023 - £112,369,000) from investments sold in the period. The book cost of these investments when they were purchased was £88,658,000 (2023 - £97,005,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments. abrdn New India Investment Trust plc --- # Notes to the Financial Statements Continued (b) Transaction costs. During the year, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through the capital column of the Statement of Comprehensive Income, and are included within gains/(losses) on investments at fair value through profit or loss in the Statement of Comprehensive Income. The total costs were as follows: | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Purchases | 165 | 166 | | Sales | 178 | 173 | | | 343 | 339 | The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document provided by the Manager are calculated on a different basis and in line with the PRIIPs regulations. ## 11. Other receivables | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Amounts due from brokers | 2,328 | 3,266 | | Recoverable tax on Indian dividends | - | 393 | | Prepayments and accrued income | 75 | 56 | | | 2,403 | 3,715 | None of the above amounts are past their due date or impaired (2023 - nil). 68 abrdn New India Investment Trust plc --- # 12. Current liabilities | (a) | Bank loan | 2024 | 2023 | | --- | --- | --- | --- | | | | £'000 | £'000 | | | Loans repayable within one year | 25,953 | 29,918 | In August 2022, the Company entered into a three year £30 million multi-currency revolving loan facility with Royal Bank of Scotland International Limited (London Branch). £26 million was drawn down at 31 March 2024 (31 March 2023 – £30 million) at an all-in interest rate of 8.7873% until 2 April 2024 (2023 – 7.777% until 3 April 2023). On 30 June 2022, the Company agreed an extension of the facility to 5 August 2025, incurring £105,000 of expenses which are amortised over the remaining life of the loan. At the date of this Report the Company had drawn down £26 million at an all-in interest rate of 8.80% until 5 August 2024. The terms of the loan facility contain covenants that consolidated gross borrowings should not exceed 20% of adjusted investment portfolio value, the net asset value shall not at any time be less than £150 million and the investment portfolio contains a minimum of 25 eligible investments. The Company complied with all covenants during the year and up to the date of signing this Report. | (b) | Other payables | 2024 | 2023 | | --- | --- | --- | --- | | | | £'000 | £'000 | | | Amounts due to brokers | 29 | 1,053 | | | Amounts due to brokers relating to buybacks to treasury | 453 | 365 | | | Other creditors | 1,749 | 1,861 | | | | 2,231 | 3,279 | # 13. Non-current liabilities | | 2024 | 2023 | | --- | --- | --- | | | £'000 | £'000 | | Deferred tax liability on Indian capital gains | 19,406 | 11,148 | abrdn New India Investment Trust plc --- # Notes to the Financial Statements Continued ## 14. Ordinary share capital | | 2024 | | 2023 | | | --- | --- | --- | --- | --- | | | Number | £'000 | Number | £'000 | | Authorised | 200,000,000 | 50,000 | 200,000,000 | 50,000 | | Issued and fully paid | | | | | | Ordinary shares of 25p each | 52,107,910 | 13,028 | 55,809,921 | 13,953 | | Held in treasury: | | | | | | Ordinary shares of 25p each | 6,962,230 | 1,740 | 3,260,219 | 815 | | | 59,070,140 | 14,768 | 59,070,140 | 14,768 | The Ordinary shares give shareholders voting rights, the entitlement to all of the capital growth in the Company's assets, and to all the income from the Company that is resolved to be distributed. During the year 3,702,011 (2023 - 2,127,206) Ordinary shares of 25p each were repurchased by the Company at a total cost, including transaction costs, of £21,778,000 (2023 - £11,810,000). All of the shares were placed in treasury. Shares held in treasury represent 11.79% (2023 - 5.52%) of the Company's total issued shares at the year end. Shares held in treasury do not carry a right to receive dividends. ## 15. Analysis of changes in net debt | | 2023 | Currency differences | Net Cash flows | Non-cash movements | 2024 | | --- | --- | --- | --- | --- | --- | | | £'000 | £'000 | £'000 | £'000 | £'000 | | Cash and short term deposits | 7,178 | (403) | (323) | - | 6,452 | | Debt due within one year | (29,918) | - | 4,000 | (35) | (25,953) | | | (22,740) | (403) | 3,677 | (35) | (19,501) | | | 2022 | Currency differences | Net Cash flows | Non-cash movements | 2023 | | --- | --- | --- | --- | --- | --- | | | £'000 | £'000 | £'000 | £'000 | £'000 | | Cash and short term deposits | 9,772 | (432) | (2,162) | - | 7,178 | | Debt due within one year | (30,000) | - | - | 82 | (29,918) | | | (20,228) | (432) | (2,162) | 82 | (22,740) | A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis. 70 abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # 16. Net asset value per Ordinary share The net asset value per Ordinary share is based on a net asset value of £427,054,000 (2023 - £357,919,000) and on 52,107,910 (2023 - 55,809,921) Ordinary shares, being the number of Ordinary shares in issue at the year end, excluding shares held in treasury. # 17. Financial instruments Risk management. The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments comprise securities and other investments, cash balances and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Board has delegated the risk management function to the Manager under the terms of its management agreement with the Manager (further details of which are included under note 4). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors on the grounds of their materiality. Risk management framework. The directors of the Manager collectively assume responsibility for the Manager's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year. The Manager is a fully integrated member of abrdn, which provides a variety of services and support to the Manager in the conduct of its business activities, including in the oversight of the risk management framework for the Company. The Manager has delegated the day to day administration of the investment policy to the Investment manager, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment disclosures to investors (details of which can be found on the Company's website). The Manager has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company. The Manager conducts its risk oversight function through the operation of the abrdn's risk management processes and systems which are embedded within the abrdn's operations. abrdn's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk and Risk Management. The team is headed up by abrdn's Chief Risk Officer, who reports to the CEO of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using abrdn's operational risk management system ("SHIELD"). abrdn's Internal Audit Department is independent of the Risk Division and reports directly to the abrdn's CEO and to the Audit Committee of abrdn's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the abrdn's control environment. abrdn's corporate governance structure is supported by several committees to assist the board of directors of abrdn, its subsidiaries and the Company to fulfil their roles and responsibilities. abrdn's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference. Market risk. The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements – interest rate risk, foreign currency risk and other price risk. abrdn New India Investment Trust plc --- # Notes to the Financial Statements Continued Interest rate risk. The interest rate risk profile of the portfolio of the Company's financial assets and liabilities, excluding equity holdings which are all non-interest bearing, at the Statement of Financial Position date was as follows: | At 31 March 2024 | Weighted average period for which rate is fixed Years | Weighted average interest rate % | Fixed rate £'000 | Floating rate £'000 | | --- | --- | --- | --- | --- | | Assets | | | | | | Sterling | - | 3.69 | - | 6,032 | | US Dollars | - | - | - | 8 | | Indian Rupee | - | - | - | 412 | | | | | - | 6,452 | | | Weighted average period for which rate is fixed Years | Weighted average interest rate % | Fixed rate £'000 | Floating rate £'000 | | --- | --- | --- | --- | --- | | Liabilities | | | | | | Bank loan – £26,000,000 | 0.17 | 8.79 | 25,953 | - | | At 31 March 2023 | Weighted average period for which rate is fixed Years | Weighted average interest rate % | Fixed rate £'000 | Floating rate £'000 | | --- | --- | --- | --- | --- | | Assets | | | | | | Sterling | - | 3.18 | - | 7,139 | | US Dollars | - | - | - | 8 | | Indian Rupee | - | - | - | 31 | | | | | - | 7,178 | | | Weighted average period for which rate is fixed Years | Weighted average interest rate % | Fixed rate £'000 | Floating rate £'000 | | --- | --- | --- | --- | --- | | Liabilities | | | | | | Bank loan – £30,000,000 | 0.16 | 3.43 | 29,918 | - | 72 abrdn New India Investment Trust plc --- The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. The maturity date of the Company's loans is shown in note 12. The floating rate assets consist of cash deposits on call earning interest at prevailing market rates. The Company's equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the above tables. **Management of the risk.** The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. **Interest rate sensitivity.** The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the Statement of Financial Position date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. The rate of interest on the loan is the percentage rate per annum which is the aggregate of the applicable margin, adjusted SONIA rate and mandatory cost if any. If interest rates had been 100 basis points higher or lower (based on current parameter used by Manager's Investment Risk Department on risk assessment) and all other variables were held constant, the Company's revenue return for the year ended 31 March 2024 would have decreased/increased by £182,000 (2023 - decrease/increase £199,000). This is mainly attributable to the Company's exposure to interest rates on its floating rate cash balances and bank loans. These figures have been calculated based on cash positions and bank loans at each year end. In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of exposure changes frequently as part of the interest rate risk management process used to meet the Company's objectives. The risk parameters used will also fluctuate depending on the current market perception. **Foreign currency risk.** The Company's total return and net assets can be significantly affected by currency translation movements as the majority of the Company's assets and income are denominated in currencies other than Sterling, which is the Company's functional currency. **Management of the risk.** It is not the Company's policy to hedge this risk but it reserves the right to do so, to the extent possible. The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk. Foreign currency exposure by currency of denomination: | | 2024 | | | 2023 | | | | --- | --- | --- | --- | --- | --- | --- | | | Overseas investments £'000 | Net monetary assets £'000 | Total currency exposure £'000 | Overseas investments £'000 | Net monetary assets £'000 | Total currency exposure £'000 | | US Dollar | - | 8 | 8 | 5,474 | 8 | 5,482 | | Indian Rupee | 465,789 | 2,711 | 468,500 | 385,897 | 2,260 | 388,157 | | | 465,789 | 2,719 | 468,508 | 391,371 | 2,268 | 393,639 | abrdn New India Investment Trust plc 73 --- # Notes to the Financial Statements ## Continued Foreign currency sensitivity. The following tables show the impact to a 10% increase and a 10% decrease in Sterling against the foreign currency in which the Company has exposure. If Sterling were to strengthen by 10%, there would be following impact: | | 2024 Equity^{A} £'000 | 2023 Equity^{A} £'000 | | --- | --- | --- | | US Dollar | (1) | (498) | | Indian Rupee | (42,591) | (35,287) | | | (42,592) | (35,785) | If Sterling were to weaken by 10%, there would be following impact: | | 2024 Equity^{A} £'000 | 2023 Equity^{A} £'000 | | --- | --- | --- | | US Dollar | 1 | 609 | | Indian Rupee | 52,056 | 43,129 | | | 52,057 | 43,738 | A Represents total current exposure to other currencies as defined on page 73. The prior year comparatives have been updated to reflect the current year presentation. Price risk. Price risks (ie, changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments. Management of the risk. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a sector. Both the allocation of assets and the stock selection process act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are all listed on the Bombay (Mumbai) Stock Exchange and/or The Indian National Stock Exchange. Price risk sensitivity. If market prices at the Statement of Financial Position date had been 15% higher or lower (which the Directors consider to be a reasonable potential change in market prices) while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 March 2024 would have increased /(decreased) by £69,868,000 (2023 – increased/(decreased) by £58,706,000) and capital reserves would have increased /(decreased) by the same amount. 74 abrdn New India Investment Trust plc --- Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Management of the risk. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise a £30 million revolving multi-currency credit facility, which expires on 5 August 2025. Other payables are settled within one year. Details of borrowings and other payables at 31 March 2024 are shown in note 12. Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility, details of which can be found in note 12. Details of the Board's policy on gearing are shown in the interest rate risk section of this note. Liquidity risk exposure. The Company has a £30 million uncommitted multicurrency revolving loan facility, of which £26,000,000 (2023 - £30,000,000) was drawn down at the year end. Other payables amounted to £2,231,000 (2023 - £3,279,000). Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction, which could result in the Company suffering a loss. Management of the risk. The risk is actively managed as follows: - investment transactions are carried out with a number of brokers, whose credit standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker; - the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed trade reports by the Manager on a daily basis. In addition, both stock and cash reconciliations to custodians' records are performed on a daily basis by the Manager to ensure discrepancies are investigated on a timely basis. The Manager's Compliance department carries out periodic reviews of the Custodian's operations and reports its findings to the Manager's Risk Management Committee and to the Board of the Company. This review will also include checks on the maintenance and security of investments held; and - cash is held only with reputable banks whose credit ratings are monitored on a regular basis. None of the Company's financial assets are secured by collateral or other credit enhancements (2023 - none). Credit risk exposure. In summary, compared to the amounts included in the Statement of Financial Position, the maximum exposure to credit risk at 31 March was as follows: | | 2024 | | 2023 | | | --- | --- | --- | --- | --- | | | Statement of Financial Position £'000 | Maximum Exposure £'000 | Statement of Financial Position £'000 | Maximum Exposure £'000 | | Current assets | | | | | | Loans and receivables | 2,403 | 2,403 | 3,715 | 3,715 | | Cash at bank and in hand | 6,452 | 6,452 | 7,178 | 7,178 | | | 8,855 | 8,855 | 10,893 | 10,893 | abrdn New India Investment Trust plc 75 --- # Notes to the Financial Statements Continued The exposure noted in the above table is not representative of the exposure across the year as a whole. None of the Company's financial assets are past due or impaired (2023 – none). Fair values of financial assets and financial liabilities. The fair value of bank loans are represented in the table below; | | 2024 £'000 | 2023 £'000 | | --- | --- | --- | | Bank loan | 25,953 | 29,918 | Investments held at fair value through profit or loss are valued at their quoted bid prices which equate to their fair values. The fair value and the carrying value of the bank loan in the Statement of Financial Position are the same at £25,953,000 as at 31 March 2024 (2023 – £29,918,000) due to its short-term nature. The Directors are of the opinion that the other financial assets and liabilities carried at amortised cost equates to their fair value. ## 18. Capital management policies and procedures The Company's capital management objectives are: - to ensure that the Company will be able to continue as a going concern; and - to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The policy is that debt should not exceed 25% of net assets. The Board, with the assistance of the Manager monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes: - the planned level of gearing, which includes taking account of the Manager's views on the market; - the opportunity to buy back equity shares for cancellation or holding in treasury, which takes account of the difference between the net asset value per share and the share price (ie the level of share price discount or premium); - the opportunity for new issues of equity shares; and - the extent to which any revenue in excess of that which is required to be distributed should be retained. The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. ## 19. Fair value hierarchy IFRS 13 'Fair Value Measurement' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels: Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities; Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and abrdn New India Investment Trust plc --- Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the Statement of Financial Position date are as follows: | As at 31 March 2024 | Note | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | | Financial assets at fair value through profit or loss | | | | | | | Quoted equities | a) | 465,789 | - | - | 465,789 | | Net fair value | | 465,789 | - | - | 465,789 | | As at 31 March 2023 | Note | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | | Financial assets at fair value through profit or loss | | | | | | | Quoted equities | a) | 391,371 | - | - | 391,371 | | Net fair value | | 391,371 | - | - | 391,371 | a) Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. ## 20. Controlling party In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling party. ## 21. Related party transactions Directors' fees and interests. Fees payable during the year to the Directors and their interests in shares of the Company are disclosed within the Directors' Remuneration Report on page 46. ## 22. Transactions with the Manager The Company has an agreement with abrdn Fund Managers Limited for the provision of management, secretarial, accounting and administration services and for the carrying out of promotional activities in relation to the Company. Details of transactions during the year and balances outstanding at the year end are disclosed in notes 4 and 5. ## 23. Subsequent events Subsequent to the year end, the Company's NAV has increased as a result of an increase in stockmarket values of the portfolio investments. At the date of this Report the latest unaudited NAV per share was 935.74p as at the close of business on 12 June 2024, an increase of 14.2% compared the NAV per share of 819.56p at the year end. abrdn New India Investment Trust plc --- # Alternative Performance Measures Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes IFRS and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies. ## Adjusted net asset value per Ordinary share This performance measure is used to provide a like for like comparison with the Company's Benchmark for the purposes of the potential five-yearly performance-related conditional tender offer announced on 24 March 2022, which was first in effect from 1 April 2022 and is therefore not applicable to earlier reporting periods. Further details on the conditional tender may be found in the Chairman's Statement on page 7. | | 2024 | 2023 | | --- | --- | --- | | Net assets attributable (£'000) | 427,054 | 357,919 | | Accumulated Indian CGT charge since 1 April 2022 (£'000) | 11,476 | (1,870) | | Net assets attributable excluding Indian CGT charge (£'000) | 438,530 | 356,049 | | Number of Ordinary shares in issue | 52,107,910 | 55,809,921 | | Adjusted net asset value per Ordinary share^ | 841.58p | 637.97p | ^ Adjusted NAV is the Company's NAV after adding back all Indian capital gains tax paid or accrued since 1 April 2022 in respect of realised and unrealised gains made on investments. ## Discount to net asset value per Ordinary share The discount is the amount by which the share price is lower than the net asset value per share with debt at par value, expressed as a percentage of the net asset value. | | | 2024 | 2023 | | --- | --- | --- | --- | | NAV per Ordinary share | a | 819.56p | 641.32p | | Share price | b | 652.00p | 512.00p | | Discount | (a-b)/a | 20.4% | 20.2% | 78 abrdn New India Investment Trust plc --- # Net gearing Net gearing measures the total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the year end. | | | 2024 | 2023 | | --- | --- | --- | --- | | Borrowings (£'000) | a | 25,953 | 29,918 | | Cash (£'000) | b | 6,452 | 7,178 | | Amounts due to brokers (£'000) | c | 482 | 1,418 | | Amounts due from brokers (£'000) | d | 2,328 | 3,266 | | Shareholders' funds (£'000) | e | 427,054 | 357,919 | | Net gearing | (a-b+c-d)/e | 4.1% | 5.8% | # Ongoing charges ratio The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses are expressed as a percentage of the average net asset values with debt at par value throughout the year. | | 2024 | 2023 | | --- | --- | --- | | Investment management fees (£'000) | 2,964 | 3,284 | | Administrative expenses (£'000) | 957 | 1,028 | | Less: non-recurring charges^{a} (£'000) | - | (27) | | Ongoing charges (£'000) | 3,921 | 4,285 | | Average net assets (£'000) | 391,393 | 394,420 | | Ongoing charges ratio | 1.00% | 1.09% | a Professional fees unlikely to recur. The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which includes amongst other things, the cost of borrowings and transaction costs. abrdn New India Investment Trust plc --- # Alternative Performance Measures Continued ## Total return NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the Benchmark, respectively. Adjusted NAV is the Company's NAV after adding back all Indian capital gains tax paid or accrued since 1 April 2022 in respect of realised or unrealised gains made on investments. | Year ended 31 March 2024 | | NAV | Adjusted NAV | Share Price | | --- | --- | --- | --- | --- | | Opening at 1 April 2023 | a | 641.32p | 637.97p | 512.00p | | Closing at 31 March 2024 | b | 819.56p | 841.58p | 652.00p | | Price movements | c=(b/a)-1 | 27.8% | 31.9% | 27.3% | | Dividend reinvestment^{A} | d | N/A | N/A | N/A | | Total return | c+d | +27.8% | +31.9% | +27.3% | | Year ended 31 March 2023 | | NAV | Adjusted NAV | Share Price | | --- | --- | --- | --- | --- | | Opening at 1 April 2022 | a | 697.30p | 697.30p | 562.00p | | Closing at 31 March 2023 | b | 641.32p | 637.97p | 512.00p | | Price movements | c=(b/a)-1 | -8.0% | -8.5% | -8.9% | | Dividend reinvestment^{A} | d | N/A | N/A | N/A | | Total return | c+d | -8.0% | -8.5% | -8.9% | | Two years ended 31 March 2024 | | NAV | Adjusted NAV | Share Price | | --- | --- | --- | --- | --- | | Opening at 1 April 2022 | a | 697.30p | 697.30p | 562.00p | | Closing at 31 March 2024 | b | 819.56p | 841.58p | 652.00p | | Price movements | c=(b/a)-1 | +17.5% | +20.7% | +16.0% | | Dividend reinvestment^{A} | d | N/A | N/A | N/A | | Total return | c+d | +17.5% | +20.7% | +16.0% | A NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend. 80 abrdn New India Investment Trust plc --- # Alternative Investment Fund Managers Directive Disclosures (unaudited) Abrdn Fund Managers Limited and the Company are required to make certain disclosures available to investors in accordance with the Alternative Investment Fund Managers Directive ("AIFMD"). Those disclosures that are required to be made pre-investment are included within a pre-investment disclosure document ("PIDD") which can be found on the Company's website: abrdnnewindia.co.uk. There have been no material changes to the disclosures contained within the PIDD since its publication in June 2024. The periodic disclosures as required under the AIFMD to investors are made below: - information on the investment strategy, geographic and sector investment focus and principal stock exposures is included in the Strategic Report; - none of the Company's assets are subject to special arrangements arising from their illiquid nature; - the Strategic Report on pages 6 to 21, Note 17 to the Financial Statements and the PIDD, together set out the risk profile and risk management systems in place. There have been no changes to the risk management systems in place in the period under review and no breaches of any of the risk limits set, with no breach expected; - there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity management systems and procedures employed by the Manager; - all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In accordance with the Remuneration Code, the Manager's remuneration policy is available from the Company Secretaries on request (see Additional Shareholder Information on page 101) and the remuneration disclosures in respect of the Manager's reporting period ended 31 December 2023 are available from its website at: abrdn.com. ## Leverage The table below sets out the current maximum permitted limit and actual level of leverage for the Company. | | Gross Method | Commitment Method | | --- | --- | --- | | Maximum level of leverage | 2.50:1 | 2.00:1 | | Actual level at 31 March 2024 | 1.15:1 | 1.17:1 | There have been no breaches of the maximum level during the period and no changes to the maximum level of leverage employed by the Company. There is no right of re-use of collateral or any guarantees granted under the leveraging arrangement. Changes to the information contained either within this Annual Report or the PIDD in relation to any special arrangements in place, the maximum level of leverage which the Manager may employ on behalf of the Company; the right of use of collateral or any guarantee granted under any leveraging arrangement; or any change to the position in relation to any discharge of liability by the Depositary will be notified via a regulatory news service without undue delay in accordance with the AIFMD. The information on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) by abrdn Fund Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. abrdn New India Investment Trust plc --- # Corporate Information The Company's Investment Manager is a subsidiary of abrdn. Assets under the management and administration of abrdn were £508 billion at 31 March 2024. Architectural details of the white columns of Mumbai International Airport, which serves a metropolitan population of over 20 million residents. abrdn New India Investment Trust plc --- # Information about the Investment Manager The Manager, authorised and regulated by the Financial Conduct Authority, has been appointed as alternative investment fund manager to the Company. The Manager has delegated portfolio management to the Investment Manager. The Manager and Investment Manager are subsidiaries of abrdn, a global asset manager with its headquarters in Edinburgh and operations in financial capitals and important regional centres throughout the world. abrdn managed or administered over £508 billion (as at 31 December 2023) in assets for a range of clients, including individuals and institutions, through mutual and segregated funds. ## The Investment Team ![img-21.jpeg](img-21.jpeg) ### Kristy Fong Senior Investment Director Chartered Financial Analyst, B.Acc from Nanyang Technological University (Singapore). Before joining the Investment Manager in 2004 Kristy worked as an analyst at UOB Kay Hian Pte Ltd. ![img-22.jpeg](img-22.jpeg) ### Rita Tahilramani Investment Manager PGDBM from NL Dalmia (Mumbai), BE (Computers) from KJ Somaiya, Mumbai university. Joined the Investment Manager in 2023 after five years at Invesco Asset Management (India) as analyst covering the Indian consumer and industrial sectors. ![img-23.jpeg](img-23.jpeg) ### Pruksa lamthongthong Senior Investment Director CFA® charterholder, BA in Business Administration, Chulalongkorn University, Thailand. Joined the Investment Manager in 2007. ![img-24.jpeg](img-24.jpeg) ### James Thom Senior Investment Director MBA, Insead; MA, Johns Hopkins University; BSc, University College, London. Previously with Actis, the emerging markets private equity firm. Joined the Investment Manager in 2010. ![img-25.jpeg](img-25.jpeg) ### Flavia Cheong Head of Equities - Asia Pacific ex Japan Masters in Economics from University of Auckland. Previously with Investment Company of the People's Republic of China and Development Bank of Singapore. Started investment career in 1987. Joined the Investment Manager in 1996. abrdn New India Investment Trust plc --- 84 abrdn New India Investment Trust plc # Information about the Investment Manager ## Continued ### The Investment Process #### Philosophy and Style The Investment Manager will not invest in a company without first having met its management team. Having invested in a company, the Investment Manager typically meets the management team twice a year. Over the years, the Investment Manager's fund managers have visited many thousands of companies, and more than 1,000 meetings are held annually with companies' management teams. Portfolios are managed by the Investment Manager on a team basis, with individual fund managers doing their own research and analysis. Each asset class has a model portfolio that contains the team's best ideas for that asset class and forms the basis for constructing individual portfolios focused on that asset class. The Investment Manager's investment process concentrates on a company's business strategy, management, financial strength, ownership structure and corporate governance seeking companies that it can invest in for the long term. This quality test means that there are stocks in the Benchmark universe that will not be considered for investment due to a lack of transparency or poor corporate governance. The investment process also takes account of responsible investment, encompassing an assessment of environmental, social and governance factors. #### Risk Controls The Investment Manager seeks to minimise risk by its in depth research. Divergence from an index is not seen as risk – the Investment Manager views, as one example, risk to be associated with investment in poorly run, expensive companies that are not fully understood. In fact, where risk parameters are expressed in index relative terms, asset – including sector – allocation constitutes a significant constraint on stock selection. Hence diversification of stocks provides the Investment Manager's main control. abrdn's performance and investment risk unit independently monitors portfolio positions and reports monthly. As well as attributing performance it also produces statistical analysis, which is used by the Investment Manager primarily to check the portfolio is behaving as expected, not as a predictive tool. --- # Our Investment Manager's Responsible Investment Process The Investment Manager believes that a company's ability to generate sustainable returns for investors depends on the management of its environmental impact, its consideration of the interests of society and stakeholders, and on the manner in which it is governed. By putting ESG factors at the heart of its investment process, the Investment Manager aims to generate better outcomes for the Company's shareholders. The three factors can be considered as follows: - Environmental factors relate to how a company conducts itself with regard to environmental conservation and sustainability. Types of environmental risks and opportunities include a company's energy consumption, waste disposal, land development and carbon footprint, among others. - Social factors pertain to a company's relationship with its employees and vendors. Risks and opportunities can include (but are not limited to) a company's initiatives on employee health and well-being, and how supplier relationships align with corporate values. - Corporate governance factors can include the corporate decision-making structure, independence of board members, the treatment of minority shareholders, executive compensation and political contributions, among others. At the investment stage, ESG factors and analysis can help to frame where best to invest by considering material risks and opportunities alongside other financial metrics. Due diligence can ascertain whether such risks are being adequately managed, and whether the market has understood and priced them accordingly. The Investment Manager is an active investor, voting at shareholder meetings in a deliberate manner, working with companies to drive positive change, and engaging with policymakers on ESG and stewardship matters. Furthermore, with respect to the Company, the Board has supported the Investment Manager in actively choosing, in future, not to invest in tobacco companies nor investing in companies directly exposed to controversial weapons. There are three core principles which underpin the Investment Manager's investment approach (shown below) and the time it dedicates to ESG analysis as part of its overall fundamental equity research process: ![img-26.jpeg](img-26.jpeg) ![img-27.jpeg](img-27.jpeg) As part of their company research, our stock analysts evaluate the ownership structures, governance and management quality of the companies they cover. They also assess potential environmental and social risks that the companies may face. These insights are captured in our company research notes. ![img-28.jpeg](img-28.jpeg) Our stock analysts work closely with dedicated ESG specialists who sit within each regional investment team and provide industry-leading expertise and insight at the company level. These specialists also mediate the insights developed by our central ESG Investment team to the stock analysts, as well as interpret and contextualise sector and company insights. ![img-29.jpeg](img-29.jpeg) Our central ESG investment team provides thought leadership, thematic and global sector insights, as well as event-driven research. The team is also heavily involved in the stewardship of our investments and supports company engagement meetings where appropriate. abrdn New India Investment Trust plc --- abrdn's ESG Engagement # How the Investment Manager embeds ESG into its Investment Process ## 01 Investment Insight ![img-30.jpeg](img-30.jpeg) High quality fundamental and first hand research Assessment of ESG for all stocks under coverage ## 02 Active Ownership ![img-31.jpeg](img-31.jpeg) Engage and vote with aim of improving financial resilience and investment performance Raise standards in companies and industries we invest in, and help drive best practice ## 03 Risk & Monitoring ![img-32.jpeg](img-32.jpeg) Combine in-house and external scoring to inform view Active tracking of fund holdings against ESG objectives ## 04 Our People ![img-33.jpeg](img-33.jpeg) Over 130 equity professionals, and 40+ central & on-desk ESG specialists across the world # Can we measure it? There are elements of ESG that can be quantified, for example the diversity of a board, the carbon footprint of a company, and the level of employee turnover. While diversity can be monitored, measuring inclusion is more of a challenge. Although it is possible to measure the level of staff turnover, it is more challenging to quantify corporate culture. Relying on calculable metrics alone would potentially lead to misleading insights. As active managers, quantitative and qualitative assessments are blended to better understand the ESG performance of a company. The Investment Manager's analysts consider such factors in a systematic and globally applied approach to assess and compare companies consistently on their ESG credentials, both regionally and against their peer group. Some of the key questions asked of companies include: - How material are ESG issues for this company, and how are they being addressed? - What is the quality of this company's governance, ownership structure and management? - Are incentives and key performance indicators aligned with the company's strategy and the interests of shareholders? The questions asked differ from company to company; the type of questions poised to a bank would be quite different from those of a semiconductor manufacturing firm. # The ESG Scoring System Having considered the regional universe and peer group in which a company operates, the Investment Manager allocates it an ESG score between one and five. This is applied across every stock covered globally. Examples of each category and a small sample of the criteria used are detailed below: | 1. Best in class | 2. Leader | 3. Average | 4. Below average | 5. Laggard | | --- | --- | --- | --- | --- | | ESG considerations are a material part of the company's core business strategy | ESG considerations not market leading | ESG risks are considered as a part of principal business | Evidence of some financially material controversies | Many financially material controversies | | Excellent disclosure | Disclosure is good, but not best in class | Disclosure in line with regulatory requirements | Poor governance or limited oversight of key ESG issues | Severe governance concerns | | Makes opportunities from strong ESG risk management | Governance is generally very good | Governance is generally good but some minor concerns | Some issues in treating minority shareholders poorly | Poor treatment of minority shareholders | abrdn New India Investment Trust plc --- At the last review reported to the Board, covering the six months ended 31 December 2023, 65% of the companies in the portfolio were rated under the Investment Manager's scoring system as 'Leaders', reflecting the portfolio's focus on quality, while 34% of the companies were rated as 'Average'. A generally positive momentum has been witnessed from companies in the portfolio in terms of ESG, in covering both practices and disclosure, and it was pleasing to note that the second half of the year saw a number of upgrades to company scores following extensive engagement by the Investment Manager. More generally, engagements in India continue to focus on environmental impact and climate change, as well as resource intensity, cybersecurity, board dynamics and independent directors. The portfolio did not hold any companies rated as either 'Below Average' or 'Laggard'. While the Investment Manager seeks to encourage better disclosure and ESG considerations by companies, it will not always necessarily exclude one if improvements are expected. Overall, the Company supports an approach seeking to target: - an aggregate portfolio ESG rating that is better than, or equal to, the benchmark measured by the MSCI ESG rating (CCC-AAA) based on the weighted average of each company's MSCI ESG rating; - a Carbon Intensity that is at least 10% lower than the benchmark, as measured by the abrdn Carbon Footprint Tool (which uses Trucost data for Scope 1 & 2 emissions). This tool enables analysis of company, sector, and the overall portfolio's carbon footprint. The Board receives regular updates with regards to these metrics which are published on the Company website and, while not guaranteed, there is an aim that the Investment Manager's investment process will deliver against these targets at the same time as delivering long term growth. ## Climate Change Climate change is one of the most significant challenges of the 21st century and has big implications for investors. The energy transition is underway in many parts of the world, and policy changes, falling costs of renewable energy, and a change in public perception are happening at a rapid pace. Assessing the risks and opportunities of climate change is a core part of the investment process. In particular, the Investment Manager considers: ## Transition risks and opportunities Governments could take robust climate change mitigation actions to reduce emissions and transition to a low-carbon economy. This is reflected in targets, policies and regulation and can have a considerable impact on high-emitting companies. ## Physical risks and opportunities Insufficient climate change mitigation action will lead to more severe and frequent physical damage. This results in financial implications, including damage to crops and infrastructure, and the need for physical adaptation such as flood defences. The Investment Manager has aligned its approach with that advocated by the investor agenda of the Principles for Responsible Investment (PRI) – a United Nations-supported initiative to promote responsible investment as a way of enhancing returns and better managing risk. abrdn New India Investment Trust plc 87 --- abrdn New India Investment Trust plc # abrdn's ESG Engagement Continued PRI provides an intellectual framework to steer the massive transition of financial capital towards low-carbon opportunities. It also encourages fund managers to demonstrate climate action across four areas: investments; corporate engagement; investor disclosure; and policy advocacy, as explained below: ![img-34.jpeg](img-34.jpeg) To assist in the analysis, the Investment Manager has developed a proprietary climate scenario analysis tool. Climate scenario analysis involves modelling the impact on financial assets of a range of pathways (for both physical climate change and the transition to a low carbon economy) under plausible assumptions for future policy and technological change. This allows the Investment Manager to explore the impact of climate change on portfolios and to inform investment decisions. ## Importance of Engagement The Investment Manager is committed to regular, ongoing engagement with the companies in which it invests, to help to maintain and enhance their ESG standards into the future. As part of the investment process, the Investment Manager undertakes a significant number of company meetings each year on behalf of the Company. Your Company is supported by on-desk ESG analysts, as well as a well-resourced specialist ESG Investment team. These meetings provide an opportunity to discuss various relevant ESG issues including board composition, remuneration, audit, climate change, labour issues, human rights, bribery and corruption. Companies are strongly encouraged to set clear targets or key performance indicators on all material ESG risks. 88 --- # Our Engagement Activity The Investment Manager regularly engages with companies we invest in. The following chart shows the engagements that have included ESG topics. Over the six months ended 31 December 2023, the Investment Manager met with 13 portfolio companies on ESG topics and had 23 engagements with them. This does not include positions that have been sold or are under consideration for sale. These are the themes that the Investment Manager has engaged on: ![img-35.jpeg](img-35.jpeg) # Our Voting Activity | Voting Summary | Total | | --- | --- | | How many meetings were you eligible to vote? | 75 | | How many meetings did you vote at? | 75 | | How many resolutions were you eligible to vote on? | 352 | | What % of resolutions did you vote on for which you were eligible? | 100.0% | | Of the resolutions on which you voted, what % did you vote with management? | 91.8% | | Of the resolutions on which you voted, what % did you vote against management? | 6.0% | | Of the resolutions on which you voted, what % did you abstain from voting? | 2.3% | | In what % of meetings, for which you did vote, did you vote at least once against management? | 13.3% | Note: the time period referenced in the above table is 12 months ESG engagements are conducted with consideration of the 10 principles of the United Nations Global Compact, and companies are expected to meet fundamental responsibilities in the areas of human rights, labour, the environment and anti-corruption. This engagement is not limited to a company's management team. It can include many other stakeholders such as non-government agencies, industry and regulatory bodies, as well as activists and the company's customers and clients. While the Investment Manager focuses on investing in quality companies, the investment team is aware that in some cases Asian companies can lag those in Western Europe in terms of ESG. This is perhaps more true of emerging Asia than developed Asia. In investing across Asia, the Investment Manager focuses on companies and management teams exhibiting desirable behavioural traits and characteristics (for example, a track record of fair treatment of minority shareholders, thoughtful capital allocation and return) rather than a strict focus on structures (for example, relating to board composition). Subsequent to an investment, the Investment Manager engages energetically with companies to improve and enhance ESG, aiming to encourage companies to implement processes and practises that will protect and enhance shareholder value. The Investment Manager has a long track record of such constructive engagement, drawing on investment experiences globally to bring these insights to the Company's holdings. abrdn New India Investment Trust plc --- Investor Information Investors may receive information about the Company via email by registering at the foot of the homepage of the website: abrdnnewindia.co.uk The website also includes current and previous Annual and Half-Yearly Reports, performance data, the latest monthly factsheet issued by the Manager, together with links to the Company's share price and recent London Stock Exchange announcements. If you have any general questions about the Company, the Manager or performance, please send an email to new.india@abrdn.com or write to: abrdn New India Investment Trust plc 1 George Street Edinburgh EH2 2LL Information about the Company, and other investment companies managed by the Manager, may also be found on social media, as follows: Twitter: @abrdnTrusts LinkedIn: abrdn Investment Trusts Alternative Investment Fund Managers Directive ("AIFMD") and Pre-Investment Disclosure Document ("PIDD") The Company has appointed the Manager as its alternative investment fund manager and BNP Paribas London Branch (formerly BNP Paribas Trust Corporation UK Limited, until 31 May 2024) as its depositary, under the Alternative Investment Fund Managers Directive ("AIFMD"). The AIFMD requires the Manager, as the alternative investment fund manager of abrdn New India Investment Trust plc, to make available to investors certain information prior to such investors' investment in the Company. Details of the leverage and risk policies which the Company is required to have in place under AIFMD are published in the Company's Pre-Investment Disclosure Document ("PIDD") which can be found on its website: abrdnnewindia.co.uk. The periodic disclosures required to be made by the Manager under the AIFMD are set out on page 81. Benchmark The Company's Benchmark is the MSCI India Index (Sterling-adjusted). Investor Warning: Be alert to share fraud and boiler room scams abrdn has been contacted by investors informing us that they have received telephone calls and emails from people who have offered to buy their investment company shares, purporting to work for abrdn or for third party firms. abrdn has also been notified of emails claiming that certain investment companies under our management have issued claims in the courts against individuals. These may be scams which attempt to gain your personal information with which to commit identity fraud or could be 'boiler room' scams where a payment from you is required to release the supposed payment for your shares. These callers/senders do not work for abrdn and any third party making such offers/claims has no link with abrdn. abrdn does not 'cold-call' investors in this way. If you have any doubt over the veracity of a caller, do not offer any personal information, end the call and contact the Company using the details in Additional Shareholder Information. The Financial Conduct Authority provides advice with respect to share fraud and boiler room scams: fca.org.uk/consumers/scams Shareholder Enquiries For queries regarding shareholdings, lost certificates, dividend payments, registered details and related matters, shareholders holding their shares directly in the Company are advised to contact the Registrar, Computershare Investor Services PLC (see Additional Shareholder Information on page 101). Changes of address must be notified to the Registrar in writing. Suitability for Retail/NMPI Status The Company's securities are intended for investors primarily in the UK (including retail investors), professionally-advised private clients and institutional investors who are seeking long term capital appreciation from investment in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield being of secondary importance, via an investment company, and who understand and are willing to accept the risks of exposure to equities within a single emerging country fund. Investors should consider consulting a financial adviser who specialises in advising on the acquisition of shares and other securities before acquiring shares. Investors should be capable of evaluating the risks and merits of such an investment and should have sufficient resources to bear any loss that may result. abrdn New India Investment Trust plc --- The Company currently conducts its affairs so that the securities issued by the Company can be recommended by a financial adviser to ordinary retail investors in accordance with the Financial Conduct Authority's rules in relation to non-mainstream pooled investments ("NMPIs") and intends to continue to do so for the foreseeable future. The Company's securities are excluded from the Financial Conduct Authority's restrictions which apply to NMPIs because they are securities issued by an investment trust. ## Key Information Document ("KID") The KID relating to the Company can be found under 'Key Documents' in the 'Literature' section of the Company's website. ## How to Invest in the Company and other abrdn-managed investment trusts A range of leading investment platforms and share dealing services let you buy and sell abrdn-managed investment trusts including the shares of the Company. Many of these platforms operate on an 'execution-only' basis. This means they can carry out your instruction to buy or sell a particular investment trust. But they may not be able to advise on suitable investments for you. If you require advice, please speak to a qualified financial adviser (see below). ## Closure of the abrdn Investment Trust Savings Plans and transfer to interactive investor In June 2023, abrdn notified existing investors in the abrdn Investment Trust ISA, Share Plan and Investment Plan for Children (the "Plans") that these would close in December 2023. All investors with a holding or cash balance in the Plans at that date will transfer to interactive investor ("ii"). ii communicated with planholders in late November 2023 to set up account security to ensure that investors were able to continue to access their holdings via ii following the closure of the Plans. Please contact ii for any ongoing support with your ii account on 0345 646 1366, or +44 113 346 2309 if you are calling from outside the UK. Lines are open 8.00am to 5.00pm Monday to Friday. Alternatively you can access the ii website at www.ii.co.uk/abrdn-welcome. ## Flexibility Many investment platform providers will allow you to buy and hold abrdn Investment Trust shares within an Individual Savings Account (ISA), Junior ISA or Self Invested Personal Pension (SIPP), all of which have potential tax advantages. Most will also allow you to invest on both a lump sum and regular savings basis. ## Costs and service It is important to choose the right platform for your needs, so take time to research what each platform offers before you make your decision, as well as considering charges. When it comes to charges, some platforms have flat fee structures while others levy percentage-based charges. Typically, you will also pay a fee every time you buy and sell shares, so you need to bear in mind these transaction costs if you are trading frequently. There may also be additional charges for ISA and SIPP investments. ## Can I exercise my voting rights if I hold my shares through an investment platform? Yes, you should be able to exercise your right to vote by contacting your platform provider. Procedures differ, but some platforms will automatically alert you when new statutory documents are available and then allow you to vote online. Others will require you to contact them to vote. Your chosen platform provider will provide further guidance. ## Getting advice abrdn recommends that you seek financial advice prior to making an investment decision. If you do not currently have a financial adviser, details of authorised financial advisers in your area can be found at pimfa.co.uk or unbiased.co.uk (see below). You will pay a fee for advisory services. abrdn New India Investment Trust plc 91 --- 92 abrdn New India Investment Trust plc # Investor Information ## Continued ### Platform providers Platforms featuring the Company, as well as other abrdn-managed investment trusts, include: - AJ Bell: www.ajbell.co.uk/markets/investment-trusts - Barclays Smart Investor: www.barclays.co.uk/smart-investor - Charles Stanley Direct: www.charles-stanley-direct.co.uk - Fidelity: www.fidelity.co.uk - Halifax: www.halifax.co.uk/investing - Hargreaves Lansdown: www.hl.co.uk/shares/investment-trusts - interactive investor (owned by abrdn): www.ii.co.uk/investment-trusts The companies above are shown for illustrative purposes only. Other platform providers are available. The links above direct you to external websites operated by each platform provider. abrdn is not responsible for the content and information on these third-party sites, apart from interactive investor, which is owned by abrdn. ### Discretionary Private Client Stockbrokers If you have a large sum to invest, you may wish to contact a discretionary private client stockbroker. They can manage your entire portfolio of shares and will advise you on your investments. To find a private client stockbroker visit The Personal Investment Management & Financial Advice Association at: pimfa.co.uk. ### Financial Advisers To find an adviser who recommends on investment trusts, visit: unbiased.co.uk ### Regulation of Stockbrokers Before approaching a stockbroker, always check that they are regulated by the Financial Conduct Authority: Tel: 0800 111 6768 or at at https://register.fca.org.uk Email: consumerqueries@fca.org.uk ### Note Please remember that past performance is not a guide to the future. Stock market and currency movements may cause the value of shares and the income from them to fall as well as rise and investors may not get back the amount they originally invested. As with all equity investments, the value of investment trusts purchased will immediately be reduced by the difference between the buying and selling prices of the shares, the market maker's spread. Investors should further bear in mind that the value of any tax relief will depend on the individual circumstances of the investor and that tax rates and reliefs, as well as the tax treatment of ISAs, may be changed by future legislation. The information on pages 90 to 92 has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) by abrdn Investments Limited which is authorised and regulated by the Financial Conduct Authority. --- # General A new stock purchased during the year was Uno Minda, which supplies auto components to motorbikes and cars, and now includes a new suite of products for electric vehicles. abrdn New India Investment, PUBLIC --- # Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting of abrdn New India Investment Trust plc will be held at the offices of abrdn plc at 18 Bishops Square, London E1 6EG at 12.30pm on 20 September 2024 for the following purposes: ## Ordinary Business As ordinary business to consider and, if thought fit, pass the following Resolutions 1 to 7 inclusive, as Ordinary Resolutions: 1. To receive and adopt the Directors' and Auditor's Reports and adopt the Financial Statements for the year ended 31 March 2024. 2. To receive and adopt the Directors' Remuneration Report for the year ended 31 March 2024 (other than the Directors' Remuneration Policy). 3. To re-elect David Simpson as a Director of the Company. 4. To re-elect Andrew Robson as a Director of the Company. 5. To re-elect Rebecca Donaldson as a Director of the Company. 6. To re-elect Michael Hughes as a Director of the Company. 7. To reappoint KPMG LLP as Independent Auditor of the Company and to authorise the Directors to determine their remuneration for the year to 31 March 2025. ## Special Business As special business to consider and, if thought fit, pass the following Resolutions in the case of Resolutions 8 and 10 as Special Resolutions and Resolution 9 as an Ordinary Resolution: ## Authority to Make Market Purchases of Shares 8. THAT, the Directors of the Company be and are hereby generally and unconditionally authorised in accordance with Section 701 of the Companies Act 2006 (the "Act"), but without prejudice to the exercise of any such authority prior to the date of this resolution, to make market purchases (within the meaning of Section 693(4) of the Act) of Ordinary shares of 25p each in the capital of the Company ("Ordinary shares"), and to cancel or hold these Ordinary shares in treasury provided that:- i. the maximum aggregate number of Ordinary shares hereby authorised to be purchased shall be an aggregate of 7,726,402 Ordinary shares, being 14.99% of the issued Ordinary share capital of the Company (excluding treasury shares) as at the date of approval of this notice; ii. the minimum price which may be paid for an Ordinary share is 25p (exclusive of expenses); iii. the maximum price (exclusive of expenses) which may be paid for an Ordinary share shall be not more than the higher of (i) 5% above the average market values of the shares taken from the Daily Official List of the London Stock Exchange for the 5 business days before the purchase is made or that stipulated by Article 5(1) of the Commission Regulation (EC) No. 2273/2003 and, (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out; and iv. unless renewed, the authority hereby conferred shall expire at the conclusion of the Annual General Meeting of the Company in 2025 or on 30 September 2025, whichever is earlier, save that the Company may, prior to such expiry, enter into a contract to purchase Ordinary shares which will or may be completed or executed wholly or partly after the expiration of such authority and may make a purchase of Ordinary shares pursuant to any such contract: abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Authority to Allot Shares 9. THAT, in substitution for any existing authority under Section 551 of the Companies Act 2006 (the "Act"), but without prejudice to the exercise of any such authority prior to the date of this resolution, the Directors be and they are hereby generally and unconditionally authorised, in accordance with Section 551 of the Companies Act 2006, to allot equity securities (within the meaning of the Section 551 of the Act) up to an aggregate nominal amount of £1,288,592 (representing approximately 10% of the Company's issued Ordinary share capital as at the date of approval of this notice) during the period commencing on the date of the passing of this resolution and expiring at the conclusion of the Annual General Meeting of the Company in 2025 or on 30 September 2025, whichever is earlier, but so that this authority shall allow the Company to make, before the expiry of this authority, offers or agreements which would or might require relevant securities to be allotted after such expiry and notwithstanding such expiry, the Directors may allot relevant securities in pursuance of any such offers or agreements. # Disapplication of Pre-emption Rights 10. THAT, subject to the passing of Resolution 9 above ("the Section 551 resolution") and in substitution for any existing authority under Sections 570 and 573 of the Companies Act 2006 (the "Act") but without prejudice to the exercise of any such authority prior to the date of this resolution, the Directors of the Company be and are hereby generally and unconditionally authorised in accordance with Sections 570 and 573 of the Act to allot equity securities (within the meaning of Section 560 of the Act) either pursuant to the Section 551 resolution or by way of a sale of treasury shares, in each case for cash as if Section 561(1) of the Act did not apply to such allotment, provided that this power shall be limited to the allotment of equity securities: i. (otherwise than pursuant to sub-paragraph (ii) below) up to an aggregate nominal amount of £1,288,592 (representing approximately 10% of the Company's issued Ordinary share capital, excluding treasury shares, as at the date of approval of this notice); ii. in connection with or the subject of an offer or invitation, open for acceptance for a period fixed by the Directors, to holders of Ordinary shares and such other equity securities of the Company as the Directors may determine on the register of members on a fixed record date in proportion (as nearly as may be) to their respective holdings of such securities, (but subject to such exclusions, limits or restrictions or other arrangements as the Directors of the Company may consider necessary or appropriate to deal with treasury shares, fractional entitlements, record dates or legal, regulatory or practical problems in or under the laws of, or requirements of, any regulatory body or any stock exchange in any territory or otherwise howsoever); and iii. at a price per Ordinary share which represents a premium to the prevailing NAV per Ordinary share from time to time (as determined by the Directors and excluding treasury shares). Such power shall expire at the conclusion of the Annual General Meeting of the Company in 2025 or on 30 September 2025, whichever is earlier, but so that this power shall enable the Company to make an offer or agreement before such expiry which would or might require equity securities to be allotted after such expiry and the Directors of the Company may allot equity securities in pursuance of any such offer or agreement as if such expiry had not occurred. By order of the Board abrdn Holdings Limited Company Secretary Registered Office 280 Bishopsgate London EC2M 4AG 13 June 2024 abrdn New India Investment Trust plc --- # Notice of Annual General Meeting Continued ## Notes i. A shareholder entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend, speak and vote instead of him/her or on his/her behalf at the Meeting. A proxy need not be a shareholder. The shareholder may appoint more than one proxy, provided that each proxy is appointed to attend, speak and vote in respect of a different share or shares. If you wish your proxy to speak on your behalf at the meeting, you will need to appoint your own choice of proxy (not the Chairman of the meeting) and give instructions directly to them. Appointing a proxy will not prevent a shareholder from attending in person and voting at the meeting. A proxy form which may be used to make such appointment and give proxy instructions accompanies this notice. If you do not have a proxy form and believe that you should, or if you would like to appoint more than one proxy, please contact the Company's Registrars, Computershare Investor Services PLC, on 0370 707 1153. In the case of joint holders, the vote of the first named in the register of members of the Company who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of other joint holders. ii. To be valid, the appointment of a proxy, and the original or duly certified copy of the power of attorney or other authority, if any, under which it is signed or authenticated, should be sent to the Company's Registrars, Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY so as to arrive not less than 48 hours (excluding non-working days) before the time fixed for the Meeting. iii. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those shareholders registered in the register of members of the Company not later than 6.30pm on the date two days (excluding non-working days) before the time fixed for the meeting (or, if the meeting is adjourned, registered in the register of members not later than 6.30pm on the date two days (excluding non-working days) before the time fixed for the adjourned meeting) shall be entitled to attend or vote at the meeting in respect of the number of Ordinary shares registered in their name at that time. In each case, changes to entries on the register of members of the Company after that time shall be disregarded in determining the rights of any person to attend or vote at the meeting. iv. Any shareholder holding 3% or more of the total voting rights of the Company who appoints a person other than the Chairman of the meeting as their proxy will need to ensure that both he or she and their proxy comply with their respective disclosure obligations under the UK Disclosure Guidance and Transparency Rules. v. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the meeting and any adjournment(s) thereof by utilising the procedures described in the CREST Manual. CREST personal members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. vi. In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a "CREST Proxy Instruction") must be properly authenticated in accordance with Euroclear UK & Ireland Limited's ("EUI") specifications and must contain the information required for such instructions, as described in the CREST Manual. The message must be transmitted so as to be received by the issuer's agent (3RA50) no later than 48 hours before the time of the meeting or any adjournment. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer's agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. vii. CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. abrdn New India Investment Trust plc --- viii. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001. ix. In order to facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the meeting so that (i) if a corporate shareholder has appointed the Chairman of the meeting as its corporate representative to vote on a poll in accordance with the directions of all of the other corporate representatives for that shareholder at the meeting then, on a poll, those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in accordance with those directions; and (ii) if more than one corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder has not appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be nominated from those corporate representatives who attend, who will vote on a poll, and the other corporate representatives will give voting directions to that designated corporate representative. Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (icsa.org.uk), for further details of this procedure. The guidance includes a sample form of representation letter if the Chairman is being appointed as described in (i) above. x. A person to whom this notice is sent who is a person nominated under Section 146 of the Companies Act 2006 to enjoy information rights (a "Nominated Person") may, under an agreement between him/her and the shareholder by whom he/she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights. The statements of the rights of members in relation to the appointment of proxies in Notes (i) and (ii) above do not apply to a Nominated Person. The rights described in those Notes can only be exercised by registered members of the Company. xi. The terms of appointment of the Directors of the Company are available for inspection on any day (except Saturdays, Sundays and bank holidays) from the date of this notice of until the date of the meeting during usual business hours at the registered office of the Company and will, on the date of the Meeting, be available for inspection at the venue of the Meeting for 15 minutes prior to, and at, the Meeting. xii. Shareholders are advised that, unless otherwise stated, any telephone number, website or email address which may be set out in this notice of Annual General Meeting or in any related documents (including the proxy form) is not to be used for the purposes of serving information or documents on, or otherwise communicating with, the Company for any purposes other than those expressly stated. xiii. Following the Meeting, the results of the voting at the meeting and the numbers of proxy votes cast for and against and the number of votes actively withheld in respect of each of the resolutions will be announced via a Regulatory Information Service and placed on the Company's website: abrdnnewindia.co.uk xiv. Further information regarding the meeting is available from: abrdnnewindia.co.uk xv. Under Section 338 of the Companies Act 2006, members may require the Company to give to members of the Company entitled to receive this notice of meeting, notice of a resolution which may properly be moved and is intended to be moved at the meeting. Under Section 338A of that Act, members may request the Company to include in the business to be dealt with at the meeting any matter (other than a proposed resolution) which may properly be included in the business. abrdn New India Investment Trust plc 97 --- # Notice of Annual General Meeting Continued xvi. It is possible that, pursuant to requests made by members of the Company under Section 527 of the Companies Act 2006, the Company may be required to publish on a website a statement setting out any matter relating to: (i) the audit of the Company's accounts (including the auditor's report and the conduct of the audit) that are to be laid before the meeting; or (ii) any circumstances connected with an auditor of the Company ceasing to hold office since the previous meeting at which annual accounts and reports were laid in accordance with Section 437 of the Companies Act 2006. The Company may not require the members requesting any such website publication to pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company is required to place a statement on a website under Section 527 of the Companies Act 2006, it must forward the statement to the Company's auditor not later than the time when it makes the statement available on the website. The business which may be dealt with at the meeting includes any statement that the Company has been required under Section 527 of the Companies Act 2006 to publish on a website. xvii. As at 13 June 2024 (being the last practicable date prior to publication of this notice) the Company's issued share capital comprised 51,543,712 Ordinary shares of 25p each with voting rights and 7,526,428 shares in treasury. Each Ordinary share carries the right to one vote at a general meeting of the Company. Accordingly, the total number of voting rights in the Company was 51,543,712 as at 13 June 2024. xviii. If the law or Government guidance so requires at the time of the meeting, the Chairman will limit, in his sole discretion, the number of individuals in physical attendance at the meeting in order to ensure the safety of those attending the meeting. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your Ordinary shares in abrdn New India Investment Trust plc, please forward this document, together with any accompanying documents, immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or transfer was effected for onward transmission. abrdn New India Investment Trust plc --- abrdn New India Investment Trust plc # Glossary of Terms ## abrdn abrdn plc, which is a company whose shares are admitted to listing on the London Stock Exchange. ## AIC The Association of Investment Companies. ## Alternative Investment Fund Managers Directive or AIFMD The Alternative Investment Fund Managers Directive is European legislation which created a European-wide framework for regulating managers of alternative investment funds. It is designed to regulate any fund which is not a UCITS fund and which is managed and/or marketed in the EU. The Company has been designated as an alternative investment fund which is subject to the Alternative Investment Fund Managers Directive. ## Alternative Performance Measures Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes IFRS and the AIC SORP. ## Benchmark MSCI India Index (sterling adjusted). ## Company abrdn New India Investment Trust plc (formerly Aberdeen New India Investment Trust PLC, until 31 March 2023). ## Discount The amount by which the market price per share of an investment trust is lower than the NAV per share. The discount is normally expressed as a percentage of the NAV per share. ## Investment Manager abrdn Asia Limited, a wholly owned subsidiary of abrdn. ## Manager abrdn Fund Managers Limited, a wholly owned subsidiary of abrdn, has been appointed as the alternative investment fund manager of the Company. The Manager is authorised and regulated by the Financial Conduct Authority. ## Leverage For the purposes of the Alternative Investment Fund Managers Directive, leverage is any method which increases the Company's exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the Company's exposure and its NAV and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of Sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of Sterling cash balances and after certain hedging and netting positions are offset against each other. ## Net Asset Value/NAV/Adjusted NAV The value of total assets less liabilities. Liabilities for this purpose include current and long-term liabilities. The net asset value divided by the number of shares presently in issue produces the basic net asset value per share. The Adjusted NAV is the Company's NAV after adding back all Indian capital gains tax paid or accrued in respect of realised and unrealised gains made on investments. ## Net Gearing/(Cash) Net gearing/(cash) is calculated by dividing total assets (as defined below) less cash or cash equivalents by shareholders' funds expressed as a percentage. This is in accordance with the AIC guidance "Gearing Disclosures post RDR". ## Ongoing Charges Ratio of expenses as a percentage of average daily shareholders' funds calculated as per the AIC's industry standard method. ## Premium The amount by which the market price per share of an investment trust exceeds the NAV per share. The premium is normally expressed as a percentage of the NAV per share. ## Price/Earnings or PE Ratio The ratio is calculated by dividing the middle-market price per share by the earnings per share. The calculation assumes no change in earnings but in practice the multiple reflects the stock market's view of a company's prospects and profit growth potential. abrdn New India Investment Trust plc --- 100 abrdn New India Investment Trust plc # Glossary of Terms ## Continued ### Prior Charges The name given to all borrowings including debentures, loan and short term loans and overdrafts that are to be used for investment purposes, reciprocal foreign currency loans, currency facilities to the extent that they are drawn down, index-linked securities, and all types of preference or preferred capital and the income shares of split capital trusts, irrespective of the time until repayment. ### Total Assets Total assets as per the balance sheet less current liabilities and the deferred tax liability on Indian capital (before deducting prior charges as defined above). ### Total Return NAV total return involves investing the dividend in the NAV of the Company on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the dividend in the share price of the Company on the date on which that dividend goes ex-dividend. --- Additional Shareholder Information # Directors Michael Hughes (Chairman) David Simpson (Senior Independent Director) Andrew Robson (Chairman of the Audit Committee) Rebecca Donaldson (Chairman of the Management Engagement Committee) # Company Secretaries abrdn Holdings Limited 1 George Street Edinburgh EH2 2LL # Registered Office and Company Number 280 Bishopsgate London EC2M 4AG Registered in England & Wales under company number 02902424 # Website abrdnnewindia.co.uk # Points of Contact The Chairman or Company Secretaries at the Registered Office of the Company. Email: new.india@abrdn.com # Legal Entity Identifier 549300D2AW66WYEVKF02 # United States Internal Revenue Service FATCA Registration Number ("GIIN") U2I09D.99999.SL.826 # abrdn Social Media Accounts Twitter: @abrdnTrusts LinkedIn: abrdn Investment Trusts; abrdn New India Investment Trust plc # Alternative Investment Fund Manager abrdn Fund Managers Limited 280 Bishopsgate London EC2M 4AG Authorised and regulated by the Financial Conduct Authority # Investment Manager abrdn Asia Limited 7 Straits View #23-04 East Tower Marina One Singapore 018936 # Registrars (for direct shareholders) Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ Telephone: 0370 707 1153 (Lines are open Monday to Friday from 8.30am – 5.30pm, excluding public holidays in England & Wales. Charges for '03' numbers are determined by the caller's service provider. Calls may be recorded and monitored randomly for security and training purposes.) Website: uk.computershare.com/investor E-mail is available via the website # Independent Auditor KPMG LLP 15 Canada Square London E14 5GL # Depositary BNP Paribas London Branch (formerly BNP Paribas Trust Corporation UK Limited until 31 May 2024) 10 Harewood Avenue London NW1 6AA # Stockbrokers Winterflood Securities Limited The Atrium Building Cannon Bridge 25 Dowgate Hill London EC4R 2GA FSC MIX Paper | Supporting responsible forestry FSC® C001785 abrdn New India Investment Trust plc --- For more information visit abrdnnewindia.co.uk abrdn.com