India I.T. Fund Ld - Final Results

RNS No 7042r
THE INDIA IT FUND LIMITED
7 October 1999


   Preliminary Profits Statement in respect of the Company's Accounting, Year
                               Ended 30 June 1999

General

The Company, which was registered in Mauritius on 13 June 1997, is a
closed-ended multi-class investment company reporting in US Dollars. It was
subsequently decided that the Company would become open-ended on 2 September
1999. The Company has invested in the units of The Unit Trust of India - The
India I.T. Fund Scheme 1997 (UTI, Scheme). The funds have been invested through
the UTI Scheme in a portfolio consisting principally of the securities of
information technology companies and the balance in other technology related
companies. The UTI Scheme is managed in accordance with this investment
objective.


Performance and results for the year ended 30 June 1999

Since inception, the Rupee NAV has appreciated by 244.1 per cent and it stood at
Rupees 344.31 as on 30 June 1999. The dollar NAV of the Fund as on the same date
is US$25.38 and the size of the Fund is US$ 147.9 million. The Fund continued to
perform well during the year. The appreciation in Rupee NAV is better than that
of the Sensex and only marginally lower than that of the S&P CNX IT Index. The
performance is noteworthy considering the fact that the CNX IT Index is not
fully replicable as one of the fairly illiquid I.T. stocks, namely Wipro, has
about 35 per cent weighting in it (Wipro was the top performing I.T. large-cap
stock last year). However, the compound annual total return of the Fund for the
year was 134.8 per cent as against 133.2 per cent for the CNX IT Index.

In view of the good performance of the Fund and positive outlook for the Sector,
it was decided to enlarge the Fund corpus by a ' C ' share issue. The issue,
made in April 1999, raised US$20.5 million and the proceeds were fully invested
by 10 June 1999. The 'C' share corpus was merged with the original share corpus,
in the ratio of 0.403941 to 1, on the basis of the respective NAVs. The number
of shares of the Fund in issue rose to 5,828,079.


                                                     (As restated)
                                          30.06.99        30.06.98
                                             US$             US$

Net Assets                         US$ 147,915,682  US$ 58,135,950
Number of shares in issue during 
the year/period                          5,828,079       5,000,000
Net Asset Value per Redeemable 
Participating Preference share           US$ 25.38       US$ 11.63

                                                     (As restated)*
                                       01.07.98 to     13.06.97 to
                                          30.06.99        30.06.98
                                               US$             US$

Bank interest                              160,967         797,671
Dividends                                  321,744         192,350
Expenditure                            (1,632,540)     (1,402,069)
Net losses for the year/period     US$ (1,149,829)   US$ (412,048)

* Following a change in accounting policy, the Company's financial statements
have been prepared on a "look through basis", which is an aggregation of results
for the year rather than a consolidation of financial statements. The financial
impact of the changed basis of accounting on the results for the current and
prior period is as follows:

                                             1999            1998
                                              US$              US$

Current year loss on previous 
accounting basis                           (541,768)       (241,254)
Current/prior year adjustments             (608,061)       (170,794)
Current year loss on "look 
through basis'                US$        (1,149,829) US$   (412,048)

For the accounting period there are no tax liabilities, extraordinary items or
minority interests. These figures have been audited.


Dividend

The Directors of The India I.T. Fund Limited do not propose to declare a
dividend in respect of the Participating Preference Shares for the year ended 30
June 1999.

Earnings per share

Earnings per share figures have not been shown as, in the opinion of the
Directors, they are not meaningful in the circumstances of the Company, as the
number of issued Redeemable Participating Preference shares fluctuated
throughout the year.


END

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