TIDMAIE
RNS Number : 9542B
Ashoka India Equity Investment Tst
06 October 2022
ASHOKA INDIA EQUITY INVESTMENT TRUST PLC
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEARED 30 JUNE 2022
Investment Objective, Financial Information and Performance
Summary
Investment Objective
The investment objective of the Ashoka India Equity Investment
Trust plc (the "Company") is to achieve long-term capital
appreciation, mainly through investments in securities listed in
India and listed securities of companies with a significant
presence in India.
Financial information
As at 30 June 2022 As at 30 June 2021
Net asset value ("NAV") per Ordinary Share (cum income) 174.2p 158.9p
Ordinary Share price 175.0p 162.5p
Ordinary Share price premium to NAV (1) 0.5% 2.3%
Net assets GBP187.4million GBP136.6million
========== ==========
Performance summary
30 June 2022 30 June 2021
% change % change
Share price total return per Ordinary Share (1, 2) 7.7% 65.0%
NAV total return per Ordinary Share (1) 9.6% 52.6%
MSCI India IMI Index (Sterling terms) (2,3) 7.2% 45.2%
========== ==========
1 These are Alternative Performance Measures.
2 Total returns in sterling for the year ended 30 June 2022 and 2021.
3 Source: Bloomberg
Alternative Performance Measures ("APMs")
The disclosures as indicated in the footnote above represent the
Company's APMs. Definitions of these APMs and other performance
measures used by the Company, together with how these measures have
been calculated, can be found in the Annual Report.
STRATEGIC REPORT
CHAIRMAN'S STATEMENT
I am pleased to present the fourth annual results of Ashoka
India Equity Investment Trust plc for the period to 30 June 2022. I
think it unlikely that many predicted the world would move from one
global crisis straight into another, albeit the latter being
completely different and brought about through the bellicose
actions of one of the world's few superpowers. It takes a brave
soul to become a fund manager and be responsible for the fortunes
of investors' money at the best of times, but the last almost-three
years have tested the abilities of the very finest.
As I have reported on previous occasions, your Board has the
utmost confidence in the teams at Acorn Asset Management and White
Oak Capital Management (Investment Manager and Adviser
respectively) to deliver the very best performance for Shareholders
over the longer term but I am also very pleased to report that,
despite continued global headwinds, the Company's net asset value
and share price performance were ahead of the Company's benchmark
index for the year under review. Again, I must compliment the
investment teams for maintaining their focus, applying due
diligence and concentrating on investment principles.
Performance
The Company's net asset value (NAV) returned 9.6% over the
period and the share price 7.7% against its benchmark index, the
MSCI IMI, which returned 7.2% (in sterling terms). Since the
Company's inception in July 2018, the NAV has increased by 75.4%
and the Company's share price has increased by 73.4%, both
comfortably ahead of the benchmark index which grew by 33.9% (in
sterling terms). The Company's share price stood at 175.0p at the
year end, a 0.5% premium to NAV.
Since the end of the Company's 2021/22 financial year, both NAV
and share price have been strong; as at 3 October 2022, the latest
practicable date before publication of this Report, the NAV was
204.59p and the share price stood at 215p.
Investment Policy
As the Company has grown, further opportunities to invest in
well-managed businesses have presented themselves. As a result,
both the Investment Manager and Investment Adviser considered it
would be beneficial to Shareholders for the Board to request an
amendment to the Company's Investment Policy to take advantage of
such opportunities. Subsequently, after the year end, at a General
Meeting held on 29 July 2022, Shareholders approved a change in the
Company's Investment Policy that increased the number of portfolio
investments that may be held from approximately 25-50 to
approximately 50-100. There were no other changes to the Investment
Policy.
Share Issuance
The Company responded to further demand from Shareholders to
issue new shares, at a small premium to the prevailing net asset
value. In total, 22,590,042 new Ordinary Shares (including
4,239,763 shares related to payment of the performance fee for the
three-year period ended 30 June 2021) were issued during the year
under review. As at the year end there were 107,567,672 shares in
issue.
Dividend Policy
The Company's principal objective is to provide returns through
long-term capital appreciation, with income being a secondary
consideration. Therefore, Shareholders should not expect that the
Company will pay an annual dividend, under normal circumstances.
Whilst the portfolio does generate a small amount of income, this
is used to defray running costs. However, if a sufficient surplus
is generated, the Company may declare an annual dividend to
maintain UK investment trust status. In the year under review,
total surplus revenue amounted to GBP6,000. No dividend has been
declared for the year ended 30 June 2022 (2021: nil).
Redemption Facility
The Company has a redemption facility through which Shareholders
are entitled to request the redemption of all or part of their
holding of Ordinary Shares on an annual basis. The Redemption Point
for the Ordinary Shares this year is 30 September 2022.
As announced on 5 September 2022, the total number of ordinary
shares in respect of which valid redemption requests were received
for this Redemption Point was 124,374, all of which were
immediately placed with buyers by the Company's corporate broker,
Peel Hunt.
Performance Fee
The Company renewed its contract with its Investment Manager,
Acorn Asset Management Ltd, on the same terms with effect from the
start of the financial year under review, namely 1 July 2021.
To remind Shareholders of the Company's fee arrangements, no
annual management fee is paid; the Investment Manager, Acorn Asset
Management Ltd, is remunerated solely by means of a performance
fee, based on the level of performance relative to the Company's
benchmark index, the MSCI IMI, over a three-year period ending 30
June 2024. Details of the performance fee can be found on
succeeding pages of this Report.
As I said last year, the Company's portfolio is actively managed
and seeks an excess return relative to its benchmark index (known
as "alpha"). This investment style may lead to occasional greater
volatility than the benchmark index but has produced outstanding
returns for Shareholders since inception. The Board remains fully
supportive of this investment approach and the renewed terms of
remuneration for the Investment Manager.
For the year under review, no provision for a performance fee
has been accrued.
Annual General Meeting
The Company will hold its Annual General Meeting on 8 December
2022 at the offices of Stephenson Harwood, 1 Finsbury Circus,
London, EC2M 7SH, starting at 10:45 am. Given the constraints of
the last two years, the Board will be delighted to see all
Shareholders who are able to attend.
Outlook
The Investment Manager's report that follows goes into its usual
detail on the portfolio's performance over the last year and the
challenges they faced.
2022 marks the 75th anniversary of India's independence. In that
time, India has become a dynamic democracy competing on the world
stage with a young, well-educated, aspirational workforce. In a
direct comparison with the growth of an autocratic China, being a
democracy has likely held back the pace of growth but the world is
a better place for the path India has chosen to follow, albeit with
the usual challenges when an emerging economy allows its people
free choice.
With war in Europe exacerbating global inflationary pressures
and supply line shortages, the Modi government continues to
successfully tread a fine line between competing global interests;
it imports approximately 85% of its oil requirements but, at the
same time, wants and needs to maintain and grow its trade
globally.
Opinion polls suggest the Modi government looks set to be
returned to power in 2024. Modi retains a business-friendly
approach and it's arguable that continued stability has material
benefits for an entrepreneurial nation seeking to escape the tag
"emerging".
This will take time but the innovative investment options
presenting themselves to the Company's management team are only
likely to increase in the coming years, thus further enhancing the
possibility of capital growth for Shareholders over the longer
term. It is gratifying from my perspective to be able to reassure
Shareholders that strong corporate governance and research both
continue to play prominent roles when selecting investments for the
Company's portfolio.
We all hope that 2023 will see an easing of hostilities in
Europe, restored supply lines, reduced inflationary pressures and
lower interest rates. Not too much to hope for, surely? If
achieved, the signs are already emerging that India's economy will
gather strength as the world returns to growth.
As ever, thank you for being a shareholder in Ashoka India. The
Investment Manager and Adviser remain as dedicated as ever to their
task and your Board equally confident in their ability to produce
top quality returns for Shareholders over the longer term.
ANDREW WATKINS
Chairman
5 October 2022
Investment Manager's Report
Market Review
The MSCI India Investable Market Index ("MSCI India IMI Index
(in sterling terms)") was up by 7.2% during the year to 30 June
2022, outperforming both the developed as well as emerging markets.
In the same period the S&P 500 returned 0.9%, the MSCI World
Index was down by 2.9%, and the MSCI Emerging Markets Index was
down by 15.3% (all in sterling terms). Crude oil prices increased
by 77.1% and the Indian rupee depreciated by 5.8%. Amongst sectors,
utilities, energy, and real estate outperformed whilst healthcare,
materials and financials underperformed.
Performance Review
The Company has delivered a sterling NAV total return of 9.6%
during the year, outperforming the benchmark MSCI India IMI (in
sterling terms) by 2.4%.
Overall, despite a turbulent market environment, the portfolio
has outperformed during the year given that it is very well
diversified and balanced across both cyclical and counter-cyclical
sectors, while consciously avoiding market timing, sector rotation
and other such top-down bets.
Key contributors & detractors
Contributors
Laxmi Organic Industries is a specialty chemicals company and
amongst the largest and lowest cost manufacturers of Ethyl Acetate,
with approximately 30% market share in India. It is now venturing
into high value-added businesses such as niche products and
chemistries. After the acquisition of Clariant's business unit in
2010, it is the only manufacturer of diketene derivatives in India.
Additionally, the company is expanding into another platform by
acquiring Miteni in Italy, a niche fluorochemical manufacturer with
a unique portfolio of products. The profit contribution from
value-added, high margin business is expected to increase
materially from 55% in 2020 to 80% in 2025. The stock appreciated
during the year due to the company's expanding profit margins and
robust operating performance.
Persistent Systems is a mid-sized IT services company with deep
domain expertise in healthcare, life sciences and financial
services verticals, and a niche positioning in adjacent areas such
as health-tech and fin-tech. The company has forged strong
partnerships with leading enterprise software ecosystems such as
Salesforce, Appian, and Snowflake. It also has strong capabilities
in product engineering services with the likes of IBM, CISCO,
Intuit and Dassault Systems as key customers. The business has
de-risked its revenue base, lowered client concentration and
increased the number of its large accounts. The stock has
outperformed due to strong growth outlook with several margin
levers which will drive healthy free cash flow growth over the
coming years.
ICICI Bank is one of the leading private sector banks in India.
Given the under-penetration of credit, the Indian banking sector
offers a long runway for growth. Well run private sector banks,
like ICICI Bank, are gaining market share from poorly run
government owned banks, which account for two thirds of the
industry. Following a leadership change in 2018, the new management
team is leveraging on the wide distribution franchise, a new
risk-based pricing approach and digital offerings to accelerate
market share and return ratios. ICICI Bank continues to improve its
margin and core profitability whilst decreasing the Non-Performing
Assets. The stock outperformed on the back of this continued strong
operating performance.
Detractors
Truecaller is a leading technology company that provides
consumer and business identity verification services. It has built
a dominant market share of approximately 80% in India over the past
decade on the back of sustained strong growth and has become a
category-defining brand in the process. It also has leadership
positions in other emerging markets such as Egypt and Nigeria, and
is a challenger in Indonesia and Malaysia. The company has started
monetizing its highly engaged user base by ramping up
ad-impressions, which has significant headroom for expansion.
Innovative products such as value-add premium subscriptions for
consumers, and enterprise verification solutions for businesses are
driving rapid growth in core geographies, even as it gains market
share in newer countries. It is a highly profitable business run by
credible technology entrepreneurs from Sweden. It was one of the
best performing stocks in the portfolio in 2021, but its share
price declined sharply in 2022 amidst the global sell-off in
technology stocks.
Metropolis Healthcare is one of the leading players in the
diagnostic space with a dominant presence in key cities such as
Mumbai, Pune, and Bangalore. The company offers a comprehensive
range of over 4,000 clinical laboratory tests and profiles. It also
has a wide network of 64 Satellite labs, capable of conducting
routine and semi-specialized tests, and 47 express labs for
conducting routine tests. Over the last few years, the company has
increased its focus on the more profitable Business to Consumer
segment, whilst expanding its collection centre network nearly
ten-fold to 2,500. The recent underperformance was led by
lower-than-expected Covid testing volumes and slower execution in a
key government contract.
Cartrade is the leader in Business to Business ("B2B") auctions
of used vehicles and the number two player in online auto
classifieds in India. The B2B auctions segment is driven by a shift
towards organised technology led platforms offering an omnichannel
experience and expansion in the share of used vehicles within the
installed base. Growth in the online auto classifieds segment is
driven by under-penetration of digital advertisement spends, market
share gains from offline advertising mediums and a structural
increase in car ownership. A profitable duopoly market structure
presents scope for good operating leverage and margin expansion.
The company's leadership team has decades of experience in the
automotive and technology sectors. CarTrade has several growth
options, including cross-selling insurance & loans products and
providing repair & maintenance services. The stock
underperformed during the year due to concerns around increased
competitive intensity.
Investment Outlook
The sharp recovery in equity markets in 2021 was punctuated by a
volatile start to 2022 with geopolitical tensions resulting in a
supply squeeze leading to near-record high resource prices,
monetary tightening by global central banks, and fears of a
recession in the US and Europe.
Despite the rising concerns over sharp input cost inflation and
global growth slowdown, India's high frequency indicators continue
to remain healthy. The Manufacturing Purchasing Managers' Index
("PMI") remained in an expansionary zone, averaging at 54.2 between
June 2021 to June 2022. The Index of Industrial Production ("IIP")
was up by 8% year on year, and the core sector grew by 14% over the
last year to June 2022. The latest survey by the central bank, The
Reserve Bank of India, indicates improving utilisation levels,
which along with accelerating end demand, is leading to higher
capacity additions across sectors. Management guidance for capacity
expansion is higher than pre-Covid levels for sectors such as
automotives, cement, and metals.
While private sector capital expenditure ("capex") is indicating
early signs of revival, government's spend on roads, railways,
defence, and housing have remained buoyant. In this context, it is
worth highlighting the key takeaways from the financial year 2023
(year ending March 2023) budget announced in February 2022. Whilst
the budget signalled policy continuity with a thrust on capex,
additional announcements were made towards enhancing the ease of
doing business and boosting exports and manufacturing. There was an
added emphasis on new areas such as sustaining digital ecosystems
and urbanisation. The budget follows the previously announced
measures by the government to improve the ease of doing business in
India. In addition, there is an added emphasis on digitisation, and
streamlining the compliance process. Overall, tax collections have
been ahead of the usual run rate and this is likely to support
higher government spending on infrastructure. In this regard,
investors will keenly monitor the progress of the US$80 billion
National Monetisation Pipeline program.
Rising energy prices have been a cause of concern globally.
However, a greatly underappreciated aspect of this has been the
structurally declining vulnerability of Indian economy to rising
crude oil prices. India imports 85% of its crude oil requirements
and this has attracted much attention over the years. Nevertheless,
there is little evidence to suggest that India is
disproportionately affected by rising oil prices - the
sensitivities of macro variables to oil prices are in-line with
what is observed for most other emerging market economies.
In any case, our view is that it is logical to expect that the
impact of higher oil prices on macroeconomic variables plays out in
a continuum, and no specific price point can be considered as a
particularly bad threshold. Furthermore, the vulnerability of these
macro variables at a given oil price level has reduced materially
over the years due to faster economic growth and more exports than
oil consumption. If one were to take a specific level of Current
Account Deficit ("CAD") to Gross Domestic Product (e.g., 2%) as a
benchmark, then the price of oil at which such CAD level is
estimated to be breached has been rising over time. At the turn of
the century, this oil price threshold was considered to be US$40
per barrel of crude oil and is now estimated to be in the range of
US$90 - $100 per barrel. However, perception might take longer to
catch up. Furthermore, an adequate level of foreign exchange
reserves (US$574 billion as of June 2022, nine months import cover)
provides policy levers to navigate the prevailing macro
environment.
The pandemic and geopolitical tensions over the last few years
have accelerated supply chain diversification across various
industries, a phenomenon that has already been underway for many
years. Heightened boardroom focus on supply chain flexibility at
Fortune 500 companies bodes well for market share gain by the
Indian manufacturing sector. Our interactions with corporates in
both listed and unlisted segments suggest that inquiry levels and
focus on order books are healthy, despite the lingering supply
chain issues. There is also early evidence of India benefiting from
disruptions in China, with India's market share of US imports
rising to 2.0% from 1.6% two years prior. Despite the recent strong
growth, India's global share in many sectors such as chemicals and
engineering goods is still small (approximately 2% to 4%). Even a
1% to 2% incremental market share gain from China, could result in
high-teens growth rates for these sectors.
India's exports remained a bright spot with 25.6% growth on a
two-year Compound Annual Growth Rate ("CAGR") basis (between June
2020 to June 2022). This has been supported by tailwinds such as: a
faster pace of formalization catalysed by The Goods and Services
Tax; the government's focus on 'Make in India' with the
implementation of a US$30 billion Production Linked Incentive
scheme, changing global trade dynamics which includes
diversification of supply chains away from China; and favourable
demographics with a technically skilled labour force.
The recent uptick in inflation (7.8% in April, 7.0% in May and
6.7% in June) prompted the Reserve Bank of India ("RBI") to hike
the repo rate by 0.4% in an off-cycle policy meeting in May,
followed by a 0.5% increase in the June and August monetary policy
meetings. To reduce the pass-through of elevated global prices into
domestic inflation, the government announced measures such as
lowering excise duties on diesel and petrol, restricting
agricultural exports and increasing fertilizer subsidies. Despite
the near-term spike, India's Consumer Price Index is not much above
the upper end of the RBI's tolerance band (between 2% and 6%).
Besides, India's core services inflation is at a reasonably
contained level of approximately 4%. With monetary and fiscal
policy working in tandem, India's inflation trajectory should
remain under control over the medium term.
India's corporate earnings continue to be strong. Nifty earnings
for the financial year 2022 grew by 33% year-on-year, at its
highest pace since 2004. Earnings are further projected to grow by
16% CAGR for the next two years. In the context of rising concerns
about global growth, it is worth re-iterating that given its
well-diversified corporate mix, India's earnings have generally
been more resilient than its emerging market peers during previous
downcycles.
Several portfolio companies have experienced steep input cost
inflation, but as has been the case, these companies tend to be
market leaders and have been better positioned to navigate an
inflationary environment. Historically, in our observation,
commodity price fluctuations are passed through the food chain and
absorbed by consumers, with hardly any lasting effect on business
economics or value.
We put particular emphasis on the corporate governance standards
of the companies we evaluate. We qualitatively screen out companies
where we believe corporate governance is below average or otherwise
of an unacceptable standard. This approach has helped us circumvent
many recent corporate governance disasters.
We employ significant research resources to build a deep
understanding of various business models across emerging and
developed markets (including engaging with experts and industry
professionals from across the world) and to track Environmental
Social and Governance (ESG) issues. More detail on this can be
found within the ESG Policy in the Annual Report. The
outperformance against both the MSCI India IMI Index (in sterling)
and the peer group across various market cycles has been due to the
balanced portfolio construction approach, which ensures that alpha
generation is a function of stock selection rather than sector
rotation or other top-down bets.
In closing, we remain cautiously optimistic and continue to
believe the structural growth drivers of the Indian economy are
deep rooted and, near-term challenges notwithstanding, India
presents an attractive long-term investment opportunity.
ACORN ASSET MANAGEMENT LTD
5 October 2022
Top Ten Holdings
% of net
As at 30 June 2022 Sector assets
ICICI Bank Ltd Financials 6.9
Infosys Ltd Information Technology 5.8
Cholamandalam Investment and Finance Co Ltd Financials 3.9
Maruti Suzuki India Ltd Consumer Discretionary 3.4
Titan Co Ltd Consumer Discretionary 3.1
Asian Paints Ltd Materials 3.0
Nestle India Ltd Consumer Staples 2.6
HDFC Bank Ltd Financials 2.6
Cipla Ltd/India Health Care 2.6
Persistent Systems Ltd Information Technology 2.5
---------------
Top ten holdings 36.4
=========
Other holdings 61.5
---------------
Total holdings in companies 97.9
=========
Cash and other net assets 2.1
---------------
Total Net assets 100.0
=========
Investment Policy, Results and Key Performance Indicators
Following the Company's year end, Shareholder approval was
obtained on 29 July 2022 to make an amendment to the Company's
Investment Policy. The updated Investment Policy can be found below
and further information on the amendment is included within the
Annual Report.
Investment Policy
The Company shall invest primarily in securities listed on any
recognised stock exchange in India and securities of companies with
a Significant Presence in India that are listed on stock exchanges
outside India. The Company may also invest up to 10 per cent. of
Gross Assets (calculated at the time of investment) in unquoted
companies with a Significant Presence in India.
A company has a "Significant Presence in India" if, at the time
of investment, it has its registered office or principal place of
business in India, or exercises a material part of its economic
activities in India.
The Company shall primarily invest in equities and
equity-related securities (including preference shares, convertible
unsecured loan stock, rights, warrants and other similar
securities). The Company may also, in pursuance of the investment
objective:
-- hold publicly traded and privately placed debt instruments
(including bonds, notes and debentures);
-- hold cash and cash equivalents including money market liquid/debt mutual funds;
-- hold equity-linked derivative instruments (including options
and futures on indices and individual securities);
-- hedge against directional risk using index futures and/or cash;
-- hold participation notes; and
-- invest in index funds, listed funds and exchange traded funds.
Notwithstanding the above, the Company does not intend to
utilise derivatives or other financial instruments to take short
positions, nor to increase the Company's gearing in excess of the
limit set out in the borrowing policy, and any restrictions set out
in this investment policy shall apply equally to exposure through
derivatives.
The Company will invest no more than 15 per cent. of Gross
Assets in any single holding or in the securities of any one issuer
(calculated at the time of investment) and will typically invest no
more than 40 per cent. of Gross Assets in any single sector
(calculated at the time of investment).
The Company is not restricted to investing in the constituent
companies of any benchmark. It is expected that the Company's
portfolio will comprise approximately 50 to 100 investments
although, in order to allow the Investment Manager and Investment
Adviser flexibility to take advantage of opportunities as they
arise, the portfolio may occasionally comprise holdings outside of
this range.
In order to comply with the Listing Rules, the Company will not
invest more than 10 per cent. of Gross Assets in other listed
closed-ended investment funds, except that this restriction shall
not apply to investments in listed closed-ended investment funds
which themselves have stated investment policies to invest no more
than 15 per cent. of their gross assets in other listed
closed-ended investment funds. Additionally, in any event the
Company will itself not invest more than 15 per cent. of its Gross
Assets in other investment companies or investment trusts which are
listed on the Official List.
The Company does not expect to take controlling interests in
investee companies and will at all times invest and manage the
portfolio in a manner consistent with spreading investment risk and
in accordance with the FPI Regulations and applicable law.
It is expected that the Company's investments will predominantly
be exposed to non-Sterling currencies (principally Rupees) in terms
of their revenues and profits. The base currency of the Company is
Sterling, which creates a potential currency exposure. Whilst the
Company retains the flexibility to do so, it is expected in the
normal course that this potential currency exposure will not be
hedged using any sort of foreign currency transactions, forward
transactions or derivative instruments.
Borrowing policy
The Company may deploy gearing to seek to enhance long-term
capital growth and for the purposes of capital flexibility and
efficient portfolio management. The Company may be geared through
bank borrowings, the use of derivative instruments that have the
effect of gearing the Company's portfolio, and any such other
methods as the Board may determine. Gearing will not exceed 20 per
cent. of Net Asset Value at the time of drawdown of the relevant
borrowings or entering into the relevant transaction, as
appropriate.
No material change will be made to the investment policy without
the approval of Shareholders by ordinary resolution.
Asset allocation at period end
The breakdown of the top ten holdings and the industrial
classification of the portfolio at the Company's year end are shown
above.
Dividend policy
The Board intends to manage the Company's affairs to achieve
Shareholder returns through capital growth rather than income.
Therefore, it should not be expected that the Company will pay an
annual dividend.
Regulation 19 of the Investment Trust (Approved Company) (Tax)
Regulations 2011 provides that, subject to certain exceptions, an
investment trust may not retain more than 15 per cent. of its
income in respect of each accounting period. Accordingly, the
Company may declare an annual dividend from time to time for the
purpose of seeking to maintain its status as an investment
trust.
Results and dividend
The Company's revenue surplus after tax for the year amounted to
GBP6,000 (30 June 2021: revenue surplus of GBP55,000). The Company
made a capital surplus after tax of GBP9,218,000 (30 June 2021:
capital surplus of GBP40,299,000). Therefore, the total surplus
after tax for the Company was GBP9,224,000 (30 June 2021: surplus
of GBP40,354,000).
The amended ITC regulations by the Investment Trust (Approved
Company) (Tax) (Amendment) Regulations 2013 (SI 2013/1406) allows
an investment trust with an accumulated deficit on revenue reserves
brought forward to utilise this against a revenue surplus in an
accounting period. The Board is therefore proposing that no
dividend be paid in respect of the year ended 30 June 2022.
Key performance indicators ("KPIs")
The Board measures the Company's success in attaining its
investment objective by reference to the following KPIs:
(i) Achievement of NAV and share price growth over the long
term
The Board monitors both the NAV and share price performance and
compares them with the MSCI India IMI Index (in sterling) and other
similar investment trusts. A review of performance is undertaken at
each quarterly Board meeting and the reasons for relative under and
over performance against various comparators is discussed. The
Company's NAV and share price total returns for the year to 30 June
2022 were 9.6% and 7.7% (30 June 2021: 52.6% and 65.0%)
respectively compared to a total return of 7.2% (30 June 2021:
45.2%) for the MSCI India IMI Index (sterling).
The Chairman's statement above incorporates a review of the
highlights during the year. The Investment Manager's Report above
highlights investments made during the year and how performance has
been achieved.
(ii) Maintenance of a reasonable level of premium or discount of
share price to NAV
The Company's Broker monitors the premium or discount on an
ongoing basis and keeps the Board updated as and when appropriate.
At quarterly Board meetings the Board reviews the premium or
discount in the period since the previous meeting in comparison
with other investment trusts with a similar mandate. The Company
has a redemption facility through which Shareholders will be
entitled to request the redemption of all or part of their holding
of Ordinary Shares on an annual basis. The Company's shares traded
at a premium of 0.5% on 30 June 2022 (30 June 2021: premium of
2.3%).
(iii) Maintenance of a reasonable level of ongoing charges
(excluding performance fee)
The Board receives monthly management accounts which contain an
analysis of expenditure, and these are formally reviewed at
quarterly Board meetings. The Management Engagement Committee
formally reviews the fees payable to the Company's main service
providers on an annual basis. The Board reviews the ongoing charges
on a quarterly basis and considers these to be reasonable in
comparison to the Company's peers.
Based on the Company's average net assets during the year ended
30 June 2022, the Company's ongoing charges figure calculated in
accordance with the AIC methodology was 0.5% (30 June 2021:
0.5%).
Risk and Risk Management
Principal and emerging risks and uncertainties
Description Mitigation
Economic and market conditions
Changes in general economic and market conditions in The Investment Advisor has a proven and extensive track
India including, for example, interest record with a focus on good corporate
rates, cost increase, rates of inflation, industry governance and will monitor the position and report
conditions, competition, political events regularly to the Board on market developments.
and trends, tax laws, national and international India is to a degree protected from global economic
conflicts and other factors could substantially downdrafts and increases in world inflation
and adversely affect the Company's prospects. as it is a relatively closed economy and not as
Weak economic and market conditions in Europe and the US vulnerable to high and rising energy prices
may lead to foreign disinvestment as in the past. Whilst not immune from disrupted global
in Indian equities (the "flight to quality"). trade, India may benefit from a change
of supply lines from, in particular, China. In addition,
India is not saddled with the debt
problems of Europe and the US and the currency should
therefore remain stable or appreciate
against the currencies of its main trading partners.
The Investment Advisor has a proven and extensive track
record and, together with the broker
has an active and regular dialogue with Shareholders.
Relevant disclosures have been made in the Prospectus.
Sectoral diversification
Concentration of investments in any one sector may result The Company's investment policy states that no single
in greater volatility in the value holding will represent more than 15%
of the Company's investments and consequently its NAV and of the Company's Gross Assets and no more than 40% of
may materially and adversely affect Gross Assets will be invested in any
the performance of the Company and returns to single sector (calculated at the time of investment).
Shareholders. From 29 July 2022 the investment policy was changed to
allow approximately 50 to 100 stocks
to be held in the portfolio to assist with
diversification.
Whilst the Company does not have a benchmark, the Board
measures performance for reference
purposes against the MSCI India IMI Index (in sterling).
The Board also monitors performance
relative to the Company's peer group over a range of
periods, taking into account the differing
investment policies and objectives.
Corporate governance and internal control risks
(including cyber security) Each of these contracts were entered into after full and
The Board has contractually delegated to external proper consideration of the quality
agencies the management of the investment and cost of services offered, including the financial
portfolio, the custodial services (which include the control systems in operation in so far
safeguarding of the assets), the registration as they relate to the affairs of the Company. All of the
services and the accounting and company secretarial above services are subject to ongoing
services. oversight of the Board and the performance of the
The main risk areas arising from the above contracts principal service providers is reviewed
relate to allocation of the Company's on a regular basis. The Board monitors key personnel
assets by the Investment Manager, and the performance of risks as part of its oversight of the
administrative company secretarial, Investment Manager. The Company's key service providers
registration and custodial services. These could lead to report periodically to the Board on
various consequences including the their control procedures including those in respect of
loss of the Company's assets, inadequate returns to cyber security risks.
Shareholders and loss of investment trust
status. Cyber security risks could lead to breaches of
confidentiality, loss of data records
and inability to make investment decisions.
Regulatory risks
Breaches of Section 1158 of the Corporation Tax Act could The Company has contracted out relevant services to
result in loss of investment trust appropriately qualified professionals.
status. Loss of investment trust status would lead to the The Investment Manager and the Company Secretary report
Company being subject to tax on on regulatory matters to the Board
any gains on the disposal of its investments. Breaches of on a quarterly basis. The assessment of regulatory risks
the Financial Conduct Authority forms part of the Board's risk assessment
("FCA")'s rules applicable to listed entities could programme.
result in financial penalties or suspension
of trading of the Company's shares on the London Stock
Exchange ("LSE"). Breaches of the Companies
Act 2006, The Financial Services and Markets Act, The
Alternative Investment Fund Managers'
Directive, Accounting Standards, The General Data
Protection Regulation, The Listing Rules,
Disclosure Guidance and Transparency Rules and Prospectus
Rules could result in financial
penalties or legal proceedings against the Company or its
Directors. Failure of the Investment
Manager to meet its regulatory obligations could have
adverse consequences on the Company.
Financial risks
The Company's investment activities expose it to a The investment policy states that while the Company
variety of financial risks which include retains the flexibility to do so, it
foreign currency risk and interest rate risk. is expected in the normal course of business that
currency exposure will not be hedged. The
Company does not currently have any borrowings, therefore
is not exposed to interest rate
risk. The Company's financial risks are disclosed in note
15 to the financial statements.
Emerging risks
ESG and Climate Change
The Company could suffer as a result of increased In making investment decisions, the Investment Manager
investor demand for products which promote considers qualitative measures, such
ESG investments. as the environmental and social impact of a company as
Climate change leads to additional costs and risks for well as financial and operational measures.
portfolio companies. The Company's ESG Policy is updated annually and is
published on the Company's website. The
ESG Policy includes ESG factors that are considered in
the investment process where they are
relevant and have a material impact on stock performance.
It also includes information regarding
the proprietary rating framework developed by the
Investment Adviser to assess companies on
ESG metrics. The framework consists of a sector-specific
hierarchy of key Environmental and
Social factors, against which a sector company is
assessed based on its practices and disclosures.
The Investment Adviser prioritises dialogue with
companies that have greater scope for improvement
in disclosures and/or practices.
Extreme weather events could potentially impair the The Investment Manager takes such risks into account,
operations of individual investee companies, along with the downside risk to any
potential investee companies, their supply chains, and company (whether in the form of its business prospects,
their customers. market valuation or sustainability
of dividends) that is perceived to be making a
detrimental contribution to climate change.
The Company invests in a broad portfolio of businesses
with operations spread across India,
which should limit the impact of location specific
weather events. The Investment Manager
also closely monitors the businesses which have a greater
exposure to climate change related
risks and their progress towards a low-carbon dioxide
transition.
Investment trusts are currently exempt from the Task
Force on Climate-Related Financial Disclosures
("TCFD") disclosure, but the Board will continue to
monitor the situation.
Potential reputational damage from non-compliance with The Board has adopted a policy of fostering high
regulations or incorrect disclosures. standards of corporate governance in all
its activities. This principle is the cornerstone of
creating and preserving long term shareholder
value. The Company Secretary and AIFM regularly report to
the Board any changes in the regulatory
environment.
Impact of War/Sanctions
The impact of Russia's invasion of Ukraine on the The Company does not have any direct or indirect exposure
Company's portfolio of investments and to investments in Ukraine or Russia.
any future prolonged and deep market decline which would There are also no direct business relationships with
likely lead to falling values in counterparties from these countries.
the Company's investments or interruptions to cashflow.
The extent and impact of military action, resulting
sanctions and further market disruptions
is difficult to predict which increases uncertainty and
challenges confidence in financial
markets. This could lead to a recession if the conflict
were to move towards a broader regional
or global conflict.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable laws and
regulations.
The Companies Act 2006 (the "company law") requires the
Directors to prepare financial statements for each financial year.
Under that law the Directors have elected to prepare the Company
financial statements in accordance with UK-adopted international
accounting standards.
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 during and as at the
end of the year. In preparing these financial statements, the
Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and estimates, which are reasonable and prudent;
-- present information including accounting policies and
additional disclosures as required to ensure the report is
presented in a manner that provides relevant, reliable, comparable
and understandable information;
-- state whether applicable UK-adopted international accounting
standards have been followed, subject to any material departures
disclosed and explained in the financial statements; and
-- prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and which disclose with reasonable accuracy at any
time the financial position of the Company and enable them to
ensure that the accounts comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The accounts are published on the Company's website at
https://ashokaindiaequity.com, which is maintained by the
Investment Manager. The work carried out by the auditors does not
involve consideration of the maintenance and integrity of this
website and, accordingly, the auditors accept no responsibility for
any changes that have occurred to the accounts since being
initially presented on the website. Legislation in the United
Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors' confirmation statement
The Directors each confirm to the best of their knowledge
that:
(a) the financial statements, prepared in accordance with UK
adopted international financial reporting standards in conformity
with the requirements of the Companies Act 2006, give a true and
fair view of the assets, liabilities, financial position and profit
or loss of the Company as required by DTR 4.1.12R; and
(b) this Annual Report comprising the Strategic Report and
Governance Statements includes a fair review of the development and
performance of the business and position of the Company, together
with a description of the principal and emerging risks that it
faces as required by DTR 4.1.8R and DTR 4.1.9R.
Having taken advice from the Audit Committee, the Directors
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
performance, business model and strategy.
For and on behalf of the Board
ANDREW WATKINS
Chairman
5 October 2022
FINANCIAL STATEMENTS
Statement of Comprehensive Income
For the financial year ended 30 June 2022
For the year ended For the year ended
30 June 2022 30 June 2021
Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains on
investments 4 - 7,848 7,848 - 52,929 52,929
Losses on
currency
movements - (309) (309) - (117) (117)
-------------- -------------- -------------- -------------- -------------- --------------
Net
investment
gains - 7,539 7,539 - 52,812 52,812
Income 5 1,040 - 1,040 628 - 628
-------------- -------------- -------------- -------------- -------------- --------------
Total income 1,040 7,539 8,579 628 52,812 53,440
Performance
fees 7 - - - - (5,105) (5,105)
Operating
expenses 8 (832) - (832) (511) - (511)
-------------- -------------- -------------- -------------- -------------- --------------
Operating
profit
before
taxation 208 7,539 7,747 117 47,707 47,824
Taxation 9 (202) 1,679 1,477 (62) (7,408) (7,470)
-------------- -------------- -------------- -------------- -------------- --------------
Profit for
the year 6 9,218 9,224 55 40,299 40,354
======== ======== ======== ======== ======== ========
Earnings per
Ordinary
Share 10 0.01p 9.46p 9.47p 0.07p 54.65p 54.72p
======== ======== ======== ======== ======== ========
There is no other comprehensive income and therefore the 'Profit
for the year' is the total comprehensive income for the year ended
30 June 2022.
The total column of the above statement is the profit and loss
account of the Company. The supplementary revenue and capital
columns, including the earnings per Ordinary Share, are prepared
under guidance from the Association of Investment Companies.
All revenue and capital items in the above statement derive from
continuing operations.
The notes below form an integral part of these financial
statements.
STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
30 June 30 June
2022 2021
Note GBP'000 GBP'000
Non-current assets
Investments held at fair value through profit or loss 4 183,361 147,399
-------------- --------------
Current assets
Cash and cash equivalents 7,027 7,447
Dividend receivable 188 59
Other receivables 42 604
-------------- --------------
7,257 8,110
-------------- --------------
Total assets 190,618 155,509
======== ========
Current liabilities
Purchases for future settlement - (3,227)
Other payables 6 (203) (86)
Performance fee payable - (7,992)
Non-Current liabilities
Capital gains tax provision (3,029) (7,629)
-------------- --------------
Total liabilities (3,232) (18,934)
======== ========
Net assets 187,386 136,575
======== ========
Equity
Share capital 12 1,076 860
Share premium account 90,470 49,099
Special distributable reserve 13 44,276 44,276
Capital reserve 51,684 42,466
Revenue reserve (120) (126)
-------------- --------------
Total equity 187,386 136,575
======== ========
Net asset value per Ordinary Share 14 174.2p 158.9p
======== ========
Approved by the Board of Directors on 5 October 2022 and signed
on its behalf by:
Andrew Watkins
Director
Ashoka India Equity Investment Trust plc incorporated in England
and Wales with registered number 11356069.
The notes below form an integral part of these financial
statements.
Statement of Changes in Equity
For the financial year ended June 2022
Share Special
Share premium distributable Capital Revenue
Capital account reserve reserve reserve Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening
balance
as at 1
July
2021 860 49,099 44,276 42,466 (126) 136,575
Profit
for the
year - - - 9,218 6 9,224
Issue of
Ordinary
Shares 12 216 41,886 - - - 42,102
Share
issue
costs - (515) - - - (515)
-------------- -------------- -------------- -------------- -------------- --------------
Closing
balance
as at 30
June
2022 1,076 90,470 44,276 51,684 (120) 187,386
======== ======== ======== ======== ======== ========
For the financial year ended June 2021
Share Special
Share premium distributable Capital Revenue
Capital account reserve reserve reserve Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening
balance
as at 1
July
2020 676 23,512 44,276 2,167 (181) 70,450
Profit
for the
year - - - 40,299 55 40,354
Issue of
Ordinary
Shares 12 184 25,671 - - - 25,855
Share
issue
costs - (84) - - - (84)
-------------- -------------- -------------- -------------- -------------- --------------
Closing
balance
as at 30
June
2021 860 49,099 44,726 42,466 (126) 136,575
======== ======== ======== ======== ======== ========
The Company's distributable reserves consist of the special
distributable reserve, capital reserve and revenue reserve.
The notes below form an integral part of these financial
statements.
STATEMENT OF CASH FLOWS
For the financial year ended 30 June 2022
For the year For the year
ended ended
30 June 2022 30 June 2021
Note GBP'000 GBP'000
Cash flows from operating activities
Operating profit before taxation 7,747 47,824
Taxation paid (3,123) (1,125)
Decrease/(increase) in receivables 433 (569)
Increase in payables 117 5,063
Gains on investments 4 (7,848) (52,929)
-------------- --------------
Net cash flow used in operating activities (2,674) (1,736)
======== ========
Cash flows from investing activities
Purchase of investments (118,600) (95,557)
Sale of investments 87,259 74,469
Capital distributions received - 2,871
-------------- --------------
Net cash flow used in investing activities (31,341) (18,217)
======== ========
Cash flows from financing activities
Net proceeds from issue of shares 12 34,110 25,855
Share issue costs (515) (84)
-------------- --------------
Net cash flow from financing activities 33,595 25,771
-------------- --------------
(Decrease)/increase in cash and cash equivalents (420) 5,818
-------------- --------------
Cash and cash equivalents at start of year 7,447 1,629
-------------- --------------
Cash and cash equivalents at end of year 7,027 7,447
======== ========
The notes below form an integral part of these financial
statements.
Notes to the Financial Statements
1. Reporting entity
Ashoka India Equity Investment Trust plc is a closed-ended
investment company, registered in England and Wales on 11 May 2018.
The Company's registered office is 6th Floor 125 London Wall,
London, England, EC2Y 5AS. Business operations commenced on 6 July
2018 when the Company's Ordinary Shares were admitted to trading on
the LSE. The financial statements of the Company are presented for
the year from 1 July 2021 to 30 June 2022.
The Company primarily invests in securities listed on any stock
exchange in India and can invest in the securities of companies
with a significant presence in India that are listed on stock
exchanges outside India.
2. Basis of preparation
Statement of compliance
These financial statements have been prepared in accordance with
applicable law and the UK-adopted international accounting
standards. The financial statements have been prepared on a
historical cost basis, except for the measurement at fair value of
investments.
When presentational guidance set out in the Statement of
Recommended Practice ("SORP") for Investment Companies issued by
the Association of Investment Companies ("the AIC") in July 2022 is
consistent with the requirements of IFRS, the Directors have sought
to prepare the financial statements on a basis compliant with the
recommendations of the SORP.
In preparing these Financial Statements the Directors have
considered the impact of climate change risk as a Principal and
emerging risk as set out above. In line with the UK-adopted
international accounting standards, investments are valued at fair
value, being primarily quoted prices for investments in active
markets at the balance sheet date, and therefore reflect market
participant's view of climate change risk. Unlisted investments,
valued by reference to appropriate valuation techniques (see note
15 below), similarly reflect market participants' view of climate
change risk.
Going concern
The Directors have concluded that there is a reasonable
expectation that the Company will have adequate liquidity and cash
balances to meet its liabilities as they fall due and continue in
operational existence for the foreseeable future and continue as a
going concern for the period to 31 December 2023. As such the
Directors have adopted the going concern basis in preparing the
financial statements.
Use of estimates and judgements
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates. The resulting accounting estimates and
assumptions will, by definition, seldom equal the related actual
results.
Estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
The Indian capital gains tax provision represents an estimate of
the amount of tax payable by the Company. Tax amounts payable may
differ from this provision depending on when the Company disposes
of investments. The current provision for Indian capital gains tax
is calculated based on the long-term or short-term nature of the
investments and the applicable tax rate at the year end. Currently,
the short-term tax rate is 15% and the long-term tax rate is 10%.
The estimated tax charge is subject to regular review including a
consideration of the likely period of ownership, tax rates and
market valuation movements.
As disclosed in the statement of financial position, the Company
made a capital gains tax provision as at 30 June 2022 of
GBP3,029,000 (30 June 2021: GBP7,629,000) in respect of unrealised
gains on investments held.
The Company's investments are denominated in Indian rupees.
However, the Company's shares are issued in sterling and the
majority of its investors are UK based. The Company's expenses and
dividends are also paid in sterling. Therefore, the financial
statements are presented in sterling, which is the Company's
functional currency. All financial information has been rounded to
the nearest thousand pounds.
The key estimate in the financial statements is the
determination of the fair value of the unlisted investments by the
Investment Manager for consideration by the Directors. This
estimate is key as it significantly impacts the valuation of the
unlisted investments at the year end. The fair valuation process
involves estimation using subjective inputs that are unobservable
(for which market data is unavailable). The key inputs considered
in the valuation are described below.
Fair value estimates are cross-checked to alternative estimation
methods where possible to improve the robustness of the estimates.
The risk of an over or under estimation of fair values is greater
when methodologies are applied using more subjective inputs.
Basis of measurement
The financial statements have been prepared on the historical
cost basis except for financial instruments at fair value through
profit or loss, which are measured at fair value.
3. Accounting policies
(a) Investments
Listed investments
Changes in the fair value of investments held at fair value
through profit or loss and gains or losses on disposal are included
in the capital column of the Statement of Comprehensive Income
within "gains/(losses) on investments".
Investments are derecognised on the trade date of their
disposal, which is the point where the Company transfers
substantially all the risks and rewards of the ownership of the
financial asset.
Transaction costs directly attributable to the acquisition of
investments at fair value through profit or loss are recognised
under gains/(losses) on investments.
Unlisted investments
The Investment Manager unlisted investment valuation policy
applies techniques consistent with the IPEV Guidelines.
The techniques applied are predominantly market-based approaches
or discounted cash flows where appropriate forecasts can be done.
The market-based approaches available under IPEV Guidelines are set
out below and are followed by an explanation of how they are
applied to the Company's unlisted portfolio:
- Multiples; and
- Industry Valuation Benchmarks.
The nature of the unlisted portfolio currently will influence
the valuation technique applied. The valuation approach recognises
that, as stated in the IPEV Guidelines, the price of a recent
investment, if resulting from an orderly transaction, generally
represents fair value as at the transaction date and may be an
appropriate starting point for estimating fair value at subsequent
measurement dates. However, consideration is given to the facts and
circumstances as at the subsequent measurement date, including
changes in the market or performance of the investee company.
Milestone analysis is used where appropriate to incorporate the
operational progress of the investee company into the valuation.
Additionally, the background to the transaction must be considered.
As a result, various Multiples-based techniques are employed to
assess the valuations particularly in those companies with
established revenues. Discounted cashflows are used where
appropriate. An absence of relevant industry peers may preclude the
application of the industry valuation benchmarks technique. All
valuations are cross-checked for reasonableness by employing
relevant alternative techniques.
(b) Foreign currency
Transactions in currencies other than pounds sterling are
recorded at the rates of exchange prevailing on the dates of the
transactions. At the date of each Statement of Financial Position,
monetary assets and liabilities that are denominated in foreign
currencies are retranslated at the rates prevailing on that date.
Non-monetary assets and liabilities carried at fair value that are
denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Gains
and losses arising on retranslation are included in the Statement
of Comprehensive Income within the revenue or capital column
depending on the nature of the underlying item. Foreign exchange
movements on investments are included in the Statement of
Comprehensive Income within "losses on currency" movements.
(c) Income from investments
Dividend income from shares is accounted for on the basis of
ex-dividend dates. Overseas income is grossed up at the appropriate
rate of tax.
Special dividends are assessed on their individual merits and
may be credited to the Statement of Comprehensive Income as a
capital item if considered to be closely linked to reconstructions
of the investee company or other capital transactions. All other
investment income is credited to the Statement of Comprehensive
Income as a revenue item.
Interest on fixed income instruments is accounted on an accrual
basis.
(d) Capital reserves
Profits or losses arising on the sale of investments and changes
in fair value arising upon the revaluation of investments are
credited or charged to the capital column of the Statement of
Comprehensive Income and allocated to the capital reserve.
Company's redemption facility is subject to approval by the
Board and as such the redemption facility does not represent a
contractual obligation on the Company and the shares are
accordingly classified as equity.
(e) Expenses
All expenses are accounted for on an accruals basis. Expenses
are recognised through the Statement of Comprehensive Income as
revenue items except that performance fees, if any, are payable
directly by reference to the capital performance of the Company as
per the Investment Management Agreement and are therefore charged
to the Statement of Comprehensive Income as a capital item. No
other management fees are payable.
(f) Cash and cash equivalents
Cash comprises cash at hand and demand deposits. For purposes of
the statement of cash flows, cash equivalents, including bank
overdrafts, are short-term, highly liquid investments that are
readily convertible to known amounts of cash, are subject to
insignificant risks of changes in value, and are held for the
purpose of meeting short-term cash commitments rather than for
investment or other purposes.
(g) Taxation
Irrecoverable taxation on dividends is recognised on an accruals
basis in the Statement of Comprehensive Income. Indian tax rates
for dividends with ex-dividend dates post 1 April 2020 are subject
to 20% withholding tax.
The tax charges on Indian capital gains taxes are shown in the
Statement of Comprehensive Income, recognised on an accrual basis.
The Company is not subject to UK capital gains tax.
Deferred taxation
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
statement of financial position liability method. Deferred tax
liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Investment trusts
which have approval as such under Section 1158 of the Corporation
Tax Act 2010 are not liable for taxation on capital gains.
(h) Adoption of new IFRS standards
A number of new standards, amendments to standards and
interpretations are effective for the annual periods beginning
after 1 January 2022. None of these are expected to have a material
impact on the measurement of the amounts recognised in the
financial statements of the Company.
4. Investments held at fair value through profit or loss
(a) Investments held at fair value through profit or loss
As at As at
30 June 2022 30 June 2021
GBP'000 GBP'000
Quoted investments in India 177,998 141,076
Unquoted investments in India 5,363 6,323
-------------- --------------
Closing valuation 183,361 147,399
======== ========
(b) Movements in valuation
As at As at
30 June 2022 30 June 2021
GBP'000 GBP'000
Opening valuation 147,399 72,120
Opening unrealised gains on investments 46,121 6,841
-------------- --------------
Opening book cost 101,278 65,279
Additions, at cost 121,568 98,926
Disposals, at cost (68,544) (62,927)
-------------- --------------
Closing book cost 154,302 101,278
Revaluation of investments 29,059 46,121
-------------- --------------
Closing valuation 183,361 147,399
======== ========
Transaction costs on investment purchases for the year ended 30
June 2022 amounted to GBP159,000 (30 June 2021: GBP142,000) and on
investment sales for the financial year to 30 June 2022 amounted to
GBP172,000 (30 June 2021: GBP121,000). As at year end GBP11.6
million (30 June 2021: GBP9.8 million) of investments were subject
to lock in periods.
(c) Gains on investments
Year ended Year ended
30 June 2022 30 June 2021
GBP'000 GBP'000
Realised gains on disposal of investments 25,241 11,041
Transaction costs (331) (263)
Movement in unrealised (losses)/gains on investments held (17,062) 39,280
Capital distributions received - 2,871
-------------- --------------
Total gains on investments 7,848 52,929
======== ========
Under IFRS 13 'Fair Value Measurement', an entity is required to
classify investments using a fair value hierarchy that reflects the
significance of the inputs used in making the measurement
decision.
The following shows the analysis of financial assets recognised
at fair value based on:
Level 1
Quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement
date.
Level 2
Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly or
indirectly.
Level 3
Unobservable inputs for the asset or liability.
The classification of the Company's investments held at fair
value is detailed in the table below:
As at 30 June 2022 As at 30 June 2021
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investments
at fair
value
through
profit and
loss -
Quoted
investments
in India 177,998 - - 177,998 141,076 - - 141,076
Unquoted
investments
in India - - 5,363 5,363 - - 6,323 6,323
-------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
177,998 - 5,363 183,361 141,076 - 6,323 147,399
======== ======== ======== ======== ======== ======== ======== ========
As at As at
30 June 2022 30 June 2021
GBP'000 GBP'000
Opening balance 6,323 -
Additions during the year 5,416 6,323
Conversion from level 3 to level 1 investments (6,353) -
Total losses for the year recognised in profit or loss (23) -
-------------- --------------
Closing balance 5,363 6,323
======== ========
As at year end, the Company had two unquoted investments. These
are investment in Bikaji Foods International Limited for a total of
1,056,550 shares and investment in Veeda Clinical Research Ltd for
a total of 680,790 shares.
Unquoted investments are valued by the Investment Manager in
accordance with the International Private Equity and Venture
Capital Valuation Guidelines 2018 ("IPEV") guidelines. The
Investment Manager applies techniques consistent with the IPEV. The
key inputs considered in the valuation are described below.
On November 2021, PB Fintech Ltd was listed in the Mumbai Stock
Exchange and became a public company. On August 2021 MXC Solutions
India Pvt Ltd was listed in the Mumbai Stock Exchange and became a
public company with a new name Cartrade Tech Ltd. Both investments
have been moved to level 1 from level 3 classification.
Financial assets and liabilities are held at fair value in the
financial statements with the exception of short-term assets and
liabilities where their carrying value approximates to fair
value.
5. Income
Year ended Year ended
30 June 2022 30 June 2021
GBP'000 GBP'000
Income from investments
Overseas dividends 1,040 620
Unfranked income - 8
-------------- --------------
Total income 1,040 628
======== ========
6. Other payables
As at As at
30 June 2022 30 June 2021
GBP'000 GBP'000
Accrued expenses 203 86
-------------- --------------
Total other payables 203 86
======== ========
7. Performance fees expense
Year ended 30 June 2022 Year ended 30 June 2021
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Performance fee expenses - - - - 5,105 5,105
======== ======== ======== ======== ======== ========
The Investment Manager does not receive a fixed management fee
in respect of its portfolio management services to the Company. The
Investment Manager will become entitled to a performance fee
subject to the Company delivering excess returns versus the MSCI
India IMI Index in the medium term. The performance fee will be
measured over periods of three years (Performance Period), with the
first period ending (approximately three years from 6 July 2018) on
30 June 2021. The performance fee in any Performance Period shall
be capped at 12% of the time weighted average adjusted net assets
during the relevant Performance Period.
The performance fee is calculated at a rate of 30% of the excess
returns between adjusted NAV per share on the last day of the
performance period and the MSCI India IMI Index (sterling) over the
performance period, adjusted for the weighted average number of
Ordinary Shares in issue during the performance period. The
Performance Fee in respect of each Performance Period will be paid
at the end of the three year period.
As at 30 June 2022, there was no performance fee payable to the
Investment Manager (30 June 2021: GBP7.9 million, representing the
full three year period).
8. Expenses
Year ended Year ended
30 June 2022 30 June 2021
GBP'000 GBP'000
Administration & secretarial fees 158 136
Auditor's remuneration*
- Statutory audit fee 45 30
Broker fees 33 32
Custody services 30 20
Directors' fees and expenses 128 113
Board trip to India costs** 17 -
Tax compliance and advice 27 27
Printing and public relations*** 192 67
Registrar fees 18 15
Legal Fees**** 90 30
UKLA and other regulatory fees 10 10
Other expenses***** 84 31
-------------- --------------
Total 832 511
======== ========
* Auditor's remuneration excludes VAT.
** Board trip to India costs relates to provision for proposed trip in 2023.
*** Increase is mainly due to the appointment of Kepler Partners
LLP as research provider in 2022.
**** Movement is mainly due to increase in general meeting and legal costs.
***** Other expenses include LSE, KIID fees, Distribution fees,
other license fees, bank charges and other miscellaneous fees.
9. TAXATION
(a) Analysis of charge in the year:
Year ended 30 June 2022 Year ended 30 June 2021
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Capital gains tax
provision 98 1,369 1,467 - 6,345 6,345
Capital gains tax
(credit)/expense - (3,048) (3,048) - 1,063 1,063
Indian
withholding tax 104 - 104 62 - 62
-------------- -------------- -------------- -------------- -------------- --------------
Total tax charge
for the year 202 (1,679) (1,477) 62 7,408 7,470
======== ======== ======== ======== ======== ========
The Company is liable to Indian capital gains tax under Section
115 AD of the Indian Income Tax Act 1961. A tax provision on Indian
capital gains is calculated based on the long term (securities held
more than one year) or short term (securities held less than one
year) nature of the investments and the applicable tax rate at the
period end. The short-term tax rates are 15% and the long-term tax
rates are 10%.
The Company's dividends are received net of 20% withholding tax.
Of this 20% withholding tax charge, 10% is irrecoverable with the
remainder being shown in the Statement of Financial Position as an
asset due for reclaim.
(b) Factors affecting the tax charge for the year:
The effective UK corporation tax rate for the year is 19%. The
tax charge differs from the charge resulting from applying the
standard rate of UK corporation tax for an investment trust
company. The differences are explained below:
Year ended Year ended
30 June 2022 30 June 2021
GBP'000 GBP'000
Operating profit before taxation 7,747 47,824
UK Corporation tax at 19% (2021: 19%) 1,472 9,086
Effects of:
Indian capital gains tax provision (1,679) 7,408
Gains on investments not taxable (1,432) (10,035)
Overseas dividends not taxable (198) (118)
Unutilised management expenses 158 1,067
Indian withholding tax 202 62
-------------- --------------
Total tax charge for the year (1,477) 7,470
======== ========
The Company is not liable to UK Corporation tax on capital gains
due to its status as an investment trust. The Company has an
unrecognised deferred UK Corporation tax asset of GBP2,589,000
(2021: GBP1,809,000) based on the prospective UK corporation tax
rate of 25% (2021: 19%). This asset has accumulated because
deductible expenses exceeded taxable income for the year ended 30
June 2022. No asset has been recognised in the accounts because,
given the composition of the Company's portfolio, it is unlikely
that this asset will be utilised in the foreseeable future.
(c) Movements on the capital gains tax provision for the
year
The capital gains tax provision represents an estimate of the
amount of tax provisionally payable by the Company on direct
investment in Indian equities. It is calculated based on the
long-term or short-term nature of the investments and the
unrealised gain thereon at the applicable tax rate at the year end.
As of 30 June 2022, the Company made a capital gains tax provision
of GBP3,029,000 (30 June 2021: GBP7,629,000) in respect of
unrealised gains on investments held.
10. Earnings per Ordinary Share
Year ended 30 June 2022 Year ended 30 June 2021
Revenue Capital Total Revenue Capital Total
Profit for the year (GBP'000) 6 9,218 9,224 55 40,299 40,354
Earnings per Ordinary Share 0.01p 9.46p 9.47p 0.07p 54.65p 54.72p
======== ======== ======== ======== ======== ========
Earnings per Ordinary Share is based on the profit for the year
of GBP9,224,000 (30 June 2021: profit of GBP40,354,000)
attributable to the weighted average number of Ordinary Shares in
issue during the year ended 30 June 2022 of 97,433,268 (30 June
2021: 73,735,386). Revenue and capital profits are GBP6,000 (30
June 2021: revenue profit of GBP55,000) and GBP9,218,000 (30 June
2021: capital loss of GBP40,299,000) respectively.
11. Dividend
The Company's objective is to provide shareholder returns
through capital growth with income being a secondary consideration.
It should not be expected that the Company will pay a significant
annual dividend, but the Board intends to declare such annual
dividends as are necessary to maintain the Company's UK investment
trust status. The Company generated a revenue profit in the year
ended 30 June 2022, however the Investment Trust (Approved Company)
(Tax) (Amendment) Regulations 2013 (SI 2013/1406) allows an
investment trust with an accumulated deficit on revenue reserves
brought forward, to utilise this against a current year profit in
an accounting period. Therefore, the Directors do not recommend the
payment of a final dividend in respect of the year.
12. Share capital
As at 30 June 2022 As at 30 June 2021
No. of shares GBP'000 No. of shares GBP'000
Allotted, issued and fully paid:
Redeemable Ordinary Shares of 1p each
("Ordinary Shares") 107,567,672 1,076 85,958,888 860
----------------- ----------------- ----------------- -----------------
Total 107,567,672 1,076 85,958,888 860
========== ========== ========== ==========
Ordinary Shares
On incorporation, the issued share capital of the Company was 1
Ordinary Share of GBP0.01.
During the year ended 30 June 2022, 22,590,042 Ordinary Shares
(30 June 2021: 18,310,388) were issued and 981,258 Ordinary Shares
were redeemed, with aggregate proceeds of GBP42,102,000 (30 June
2021: GBP25,855,000). As at the date of this Annual Report, the
total number of Ordinary Shares in issue is 109,917,672.
The Ordinary Shares have attached to them full voting, dividend
and capital distribution rights. They confer rights of redemption.
The Company's special distributable reserve may also be used for
share repurchases, both into treasury or for cancellation.
Management shares
In addition to the above, on incorporation the Company issued
50,000 Management Shares of nominal value of GBP1.00 each.
The holder of the Management Shares undertook to pay or procure
payment of one quarter of the nominal value of each Management
share on or before the fifth anniversary of the date of issue of
the Management Shares. The Management Shares are held by an
associate of the Investment Manager.
The Management Shares do not carry a right to attend or vote at
general meetings of the Company unless no other shares are in issue
at that time. The Management Shares have been treated as equity in
accordance with IFRS.
13. Special distributable reserve
As indicated in the Company's prospectus dated 19 June 2018,
following admission of the Company's Ordinary Shares to trading on
the LSE, the Directors applied to the Court and obtained a
judgement on 4 December 2018 to cancel the amount standing to the
credit of the share premium account of the Company. The amount of
the share premium account cancelled and credited to a special
distributable reserve was GBP44,275,898. This reserve may also be
used to fund dividend payments.
14. Net asset value ("NAV") per Ordinary Share
Net assets per ordinary share as at 30 June 2022 of GBP174.2p
(30 June 2021: GBP158.9p) is calculated based on GBP187,386,000 (30
June 2021: GBP136,575,000) of net assets of the Company
attributable to the 107,567,672 (30 June 2021: 85,958,888) Ordinary
Shares in issue as at 30 June 2022.
15. FINANCIAL INSTRUMENTS AND CAPITAL DISCLOSURES
(i) Market risks
The Company is subject to a number of market risks in relation
to economic conditions in India. Further detail on these risks and
the management of these risks are included in the Strategic
report.
The Company's financial assets and liabilities comprised:
As at 30 June 2022 As at 30 June 2021
Interest Non-interest Interest Non-interest
bearing bearing Total bearing bearing Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investments - 183,361 183,361 - 147,399 147,399
-------------- -------------- -------------- -------------- -------------- --------------
Total investment - 183,361 183,361 - 147,399 147,399
======== ======== ======== ======== ======== ========
Cash and cash equivalent 7,027 7,027 7,447 7,447
Short term debtors - 230 230 - 663 663
Short term creditors - (203) (203) - (11,305) (11,305)
-------------- -------------- -------------- -------------- -------------- --------------
Other
assets/(liabilities) - 7,054 7,054 - (3,195) (3,195)
======== ======== ======== ======== ======== ========
Total financial
assets/(liabilities) - 190,415 190,415 - 144,204 144,204
======== ======== ======== ======== ======== ========
Market price risk sensitivity
The effect on the portfolio of a 10.0% increase or decrease in
market prices would have resulted in an increase or decrease of
GBP18,336,000 (30 June 2021: GBP14,740,000) in the investments held
at fair value through profit or loss at the year end, which is
equivalent to 9.8% (30 June 2021: 10.8%) of the net assets
attributable to equity holders. This analysis assumes that all
other variables remain constant.
The Company's portfolio of unlisted level 3 investments is not
necessarily affected by market performance, however the valuations
may be affected by the performance of the underlying securities in
line with the valuation criteria in note 15.
The unlisted securities sensitivity analysis recognises that the
valuation methodologies employed involve different levels of
subjectivity in their inputs. The valuations as at 30 June 2022
were primarily driven by the weighted average of Discounted Cash
Flow (DCF) valuation, Market movement based valuation based on
Index and Peer Group.
Fair value of Variable input Positive Negative
investments Key variable sensitivity impact impact
Valuation Technique GBP'000 input (%) GBP'000 GBP'000
Expected future cash
Weighted average of the flows and equity 10% change in discount
following: 5,363 discount rate/WACC; rates 348 326
1. Discounted Cash Flow (DCF); Selection of Index used; and
2. Market movement based valuation based Selection of comparable companies based on peer
on Index; and group.
3. Market movement based valuation based on Peer Group.
Key variable inputs
The variable inputs applicable to each broad category of
valuation basis will vary dependent on the particular circumstances
of each unlisted company valuation. An explanation of each of the
key variable inputs is provided below and includes an indication of
the range in value for each input, where relevant.
Expected future cash flows and equity discount rate/WACC
The expected future cash flows are calculated using the
aggregate future operating revenue based on growth in existing and
new products resulting from the investment's ongoing capex and
expansion plans. Equity discount rate/WACC is calculated at
11%.
Selection of Index used
The selection of index is assessed based on the market
comparable index to the Company. MSCI India IMI and S&P BSE 500
were used for the market movement-based valuation based on
index.
Selection of comparable companies
The selection of comparable companies is assessed individually
for each investment at the point of investment, and the relevance
of the comparable companies is continually evaluated at each
valuation. The key criteria used in selecting appropriate
comparable companies are the industry sector in which they operate
and the geography of the company's operations.
Application of valuation basis
Each investment is assessed and the valuation basis applied will
vary depending on the circumstances of each investment. For those
investments where a trading multiples approach can be taken, the
methodology will factor in revenue, earnings or net assets as
appropriate for the investment. Discounted cash flows will be
considered where appropriate forecasts are available. The valuation
will also consider any recent transactions, where appropriate.
Estimated sustainable earnings and cash flows
The selection of sustainable revenue or earnings and cash flows
will depend on whether the company is sustainably profitable or
not, and where it is not then sustainable revenues will be used in
the valuation. The valuation approach will typically assess
companies based on the last twelve months of revenue or earnings,
as they are the most recent available and therefore viewed as the
most reliable. Where a company has reliably forecasted earnings
previously or there is a change in circumstance at the business
which will impact earnings going forward, then forward estimated
revenue or earnings may be used instead.
Application of liquidity discount
A liquidity discount may be applied either through the
calibration of a valuation against the most recent transaction, or
by application of a specific discount.
(ii) Liquidity risks
Liquidity risk is that the Company will not be able to meet its
obligations when due. An analysis of the Company's portfolio that
could be liquidated over different time periods as at the year end
is shown below:
30 June 2022 30 June 2021
% %
Within one to seven days 88.8 87.8
Between seven days to one month 4.7 1.8
Between one and three months 1.1 2.2
Greater than three months 5.4 8.2
-------------- --------------
Total 100.0 100.0
======== ========
Management of liquidity risks
The Company has a diversified portfolio which is readily
realisable. The liquidity of the portfolio is reviewed regularly by
the Investment Manager and the Board.
(iii) Currency risks
Although the Company's performance is measured in sterling, a
high proportion of the Company's assets are denominated in Indian
rupees. Change in the exchange rate between sterling and Indian
rupees may lead to a depreciation of the value of the Company's
assets as expressed in sterling and may reduce the returns to the
Company from its investments.
Currency sensitivity
The below table shows the foreign currency profile of the
Company.
Foreign currency risk profile
30 June 2022 30 June 2021
Net Total Net Total
Investment monetary currency Investment monetary currency
exposure exposure exposure exposure exposure exposure
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Indian rupees 177,785 4,138 181,923 147,399 (399) 147,000
Swedish Krona 1,788 - 1,788 - - -
US Dollar 3,788 28 3,816 - - -
-------------- -------------- -------------- -------------- -------------- --------------
Total
investment 183,361 4,166 187,527 147,399 (399) 147,000
======== ======== ======== ======== ======== ========
Based on the financial assets and liabilities at 30 June 2022,
and with all other variables remaining constant, if sterling had
weakened/strengthened against the Indian rupee by 10%, the impact
on the Company's net assets at 30 June 2022 would have been an
increase/(decrease) in fair value as follows:
30 June 2022 30 June 2021
Increase in Decrease in Increase in Decrease in
Fair Value Fair Value Fair Value Fair Value
GBP'000 GBP'000 GBP'000 GBP'000
Indian rupees 17,778 (17,778) 14,740 (14,740)
Swedish Krona 179 (179) - -
US Dollar 379 (379) - -
======== ======== ======== ========
Management of currency risks
The Company's Investment Manager monitors the currency risk of
the Company's portfolio on a regular basis. Foreign currency
exposure is regularly reported to the Board by the Investment
Manager.
The Board does not intend to use hedge currency risk using any
sort of foreign currency transactions, forward transactions or
derivative instruments.
(iv) Credit risks
Credit risk is the risk that the issuer of a financial
instrument will fail to fulfil an obligation or commitment that it
has entered into with the Company.
Cash and other assets are held by the custodian.
Management of credit risks
The Company has appointed Kotak Mahindra Bank Limited ("Kotak")
as its depositary. The credit rating of Kotak was reviewed at the
time of appointment and is reviewed on a regular basis by the
Investment Manager and the Board.
The Investment Manager monitors the Company's exposure to its
counterparties on a regular basis and trades in equities are
performed on a delivery versus payment basis. Impairment assessment
based on an expected credit loss model is not considered material
to the Company.
At 30 June 2022, the Depository held GBP177,998,000 (30 June
2021: GBP147,399,000) in respect of quoted investments and
GBP7,027,000 (30 June 2021: GBP7,447,000) in respect of cash on
behalf of the Company.
(v) Capital management policies and procedures
The Company considers its capital to consist of its share
capital of Ordinary Shares of 1p each, Management Shares of GBP1
each, and reserves totalling GBP187,386,000 (30 June 2021:
GBP136,575,000).
The Company is not subject to any externally imposed capital
requirements.
The Investment Manager and the Company's Broker monitor the
demand for the Company's shares and the Directors review the
position at Board meetings.
16. Related party transactions
Performance fees payable to the Investment Manager are disclosed
in Note 7.
White Oak Capital Partners provides investment advisory services
to the Investment Manager and no fees are paid to them from the
Company.
Since commencement of operations on 6 July 2018 fees were
payable at an annual rate of GBP35,000 to the Chairman, GBP27,500
to the Chair of the Audit Committee, and GBP25,000 to the other
Directors. From 1 July 2021 fees were payable at an annual rate of
GBP40,000 to the Chairman, GBP32,500 to the Chair of the Audit
Committee, and GBP27,500 to the other Directors.
The Directors had the following shareholdings in the Company,
all of which are beneficially owned.
As at As at
30 June 2022 30 June 2021
Andrew Watkins 94,425 94,425
Jamie Skinner 84,733 75,023
Rita Dhut 81,733 74,425
Dr Jerome Booth 66,202 54,839
======== ========
17. Post balance sheet events
As announced on 5 September 2022, the total number of Ordinary
Shares in respect of redemption requests were received for this
Redemption Point was 124,374. All of which were immediately placed
with buyers by the Company's corporate broker. The NAV per share of
the Company has increased by 17.4% from 30 June 2022 to 3 October
2022.
OTHER INFORMATION
Alternative Performance Measures
Alternative Performance Measures 30 June 2022
ordinary share price to NAV premium
The amount, expressed as a percentage, by which the share price
is more than the Net Asset Value per Ordinary Share.
As at As at
30 June 30 June
2022 2021
NAV per Ordinary Share (pence) A 174.2 158.9
Share price (pence) B 175.0 162.5
-------------- -------------- --------------
Premium (b÷a)-1 0.5% 2.3%
======== ======== ========
Ongoing charges
A measure, expressed as a percentage of average net assets, of
the regular, recurring annual costs of running an investment
company.
Year ended Year ended
30 June 30 June
2022 2021
Average NAV a 180,178,969 96,992,556
Annualised expenses* b 832,000 511,000
-------------- -------------- --------------
Ongoing charges (b÷a) 0.5% 0.5%
======== ======== ========
* Annualised expenses excludes performance fee expenses.
Share price/NAV total return
A measure of performance that includes both income and capital
returns.
Year ended 30 June 2022 Share Price NAV
Opening at 1 July 2021 (p) a 162.5 158.9
Closing at 30 June 2022 (p) b 175.0 174.2
-------------- -------------- --------------
Total return (b÷a)-1 7.7% 9.6%
======== ======== ========
Year ended 30 June 2021 Share price NAV
Opening at 1 July 2020 (p) a 98.5 104.1
Closing at 30 June 2021 (p) b 162.5 158.9
-------------- -------------- --------------
Total return (b÷a)-1 65.0% 52.6%
======== ======== ========
Financial information
This announcement does not constitute the Company's statutory
accounts. The financial information is derived from the statutory
accounts, which will be delivered to the registrar of companies and
will be put forward for approval at the Company's Annual General
Meeting. The auditors have reported on the accounts for the year
ended 30 June 2022, their report was unqualified and did not
include a statement under Section 498(2) or (3) of the Companies
Act 2006.
The Annual Report for the year ended 30 June 2022 was approved
on 5 October 2022. The report will be available in electronic
format on the Company's website, www.ashokaindiaequity.com .
The Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
This announcement contains regulated information under the
Disclosure Guidance and Transparency Rules of the FCA.
Annual General Meeting
The Annual General Meeting will be held at the offices of
Stephenson Harwood LLP, 1 Finsbury Circus, London, EC2M 7SH on 8
December 2022 at 10:45 am.
Company Secretary and registered office:
Sanne Fund Services (UK) Limited
6th Floor, 125 London Wall, Barbican, London EC2Y 5AS, United
Kingdom
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END
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