abrdnnewindia.co.uk
abrdn New India Investment Trust plc
Annual Report 31 March 2025
Seeking world-class, well governed companies at the heart of India’s growth
For more information visit abrdnnewindia.co.uk
aberdeenplc.com
abrdn New India Investment Trust plc 1
“India’s growth prospects remain
undiminished. The country benefits from
favourable demographics with a large,
relatively young population and a growing
middle class. Indian corporations are
becoming increasingly sophisticated.”
Michael Hughes, Chairman
“The portfolio delivered robust
performance over the year, with the
strongest returns coming from stock
selection in the energy, financials,
communications services and consumer
discretionary sectors.”
James Thom and Rita Tahilramani
abrdn Asia Limited,
Investment Manager
Scan the QR Code below to be directed to
where you can register for email alerts
relating to the Company:
abrdn New India Investment Trust plc 105
Directors
Michael Hughes (Chairman)
David Simpson (Senior Independent Director)
Andrew Robson (Chairman of the Audit Committee)
Rebecca Donaldson (Chairman of the Management
Engagement Committee)
Irina Miklavchich
Company Secretaries
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Registered Office and Company Number
280 Bishopsgate
London EC2M 4AG
Registered in England & Wales under company
number 02902424
Website
abrdnnewindia.co.uk
LinkedIn: abrdn New India Investment Trust plc
Points of Contact
The Chairman or Company Secretaries at the
Registered Office of the Company.
Email: new.india@aberdeenplc.com
Legal Entity Identifier
549300D2AW66WYEVKF02
United States Internal Revenue Service
FATCA Registration Number (“GIIN”)
U2I09D.99999.SL.826
Alternative Investment Fund Manager
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
Authorised and regulated by the Financial Conduct
Authority
Investment Manager
abrdn Asia Limited
7 Straits View
#23-04 East Tower
Marina One
Singapore 018936
Registrars (for direct shareholders)
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 707 1153
(Lines are open Monday to Friday from 8.30am – 5.30pm,
excluding public holidays in England & Wales. Charges for
‘03’ numbers are determined by the caller’s service
provider. Calls may be recorded and monitored randomly
for security and training purposes.)
Website: uk.computershare.com/investor
E-mail is available via the website
Independent Auditor
KPMG LLP (until 23 September 2025)
15 Canada Square
London E14 5GL
Deloitte LLP (after 23 September 2025)
9 Haymarket Square
Edinburgh EH3 8RY
Depositary
BNP Paribas SA, London Branch
10 Harewood Avenue
London NW1 6AA
Stockbrokers
Winterflood Securities Limited
The Atrium Building
Cannon Bridge
25 Dowgate Hill
London EC4R 2GA
Additional Shareholder Information
abrdn New India Investment Trust plc 1
“India’s growth prospects remain
undiminished. The country benefits from
favourable demographics with a large,
relatively young population and a growing
middle class. Indian corporations are
becoming increasingly sophisticated.”
Michael Hughes, Chairman
“The portfolio delivered robust
performance over the year, with the
strongest returns coming from stock
selection in the energy, financials,
communications services and consumer
discretionary sectors.”
James Thom and Rita Tahilramani
abrdn Asia Limited,
Investment Manager
Scan the QR Code below to be directed to
where you can register for email alerts
relating to the Company:
2 abrdn New India Investment Trust plc
Why invest in India?
Aspiration
Rising affluence in India is
leading to fast-growing
premium consumption in areas
including financial services,
autos, food and personal care
Building India
Urbanisation and the current
boom in infrastructure
development is benefitting
property developers, materials
producers and industrial/utilities
stocks
Financial Inclusion
Digitalisation is enabling the
delivery of financial services to
India’s under-served mass
market while wealth
accumulation is creating
demand for financial products
Robust financial strength
and sustainable
competitive advantage
Indian companies meeting a
‘quality’ threshold are included in
the portfolio, displaying both
strong financial characteristics
and a consistent competitive
advantage in attractive industries
or sectors
Quality Management
Quality of management is a key
attribute sought in portfolio
companies. The management of
the best companies in India is
world-class and understands the
importance of good governance to
drive the best outcomes for
investors and other stakeholders
A high conviction,
concentrated portfolio
The portfolio is built from the
bottom up around the best
quality stocks in India and is
constructed to provide a high
conviction, concentrated
exposure to India’s different
long term structural growth
stories
Why invest in abrdn New India Investment Trust plc?
Going green
Policymakers are committing
to a greener and lower carbon
future. Investments in
renewable energy, related
infrastructure, and
environmental management
have a bright future
Healthcare
Rising disposable income as well
as an increase in chronic
diseases are driving demand for
preventative and premium
quality healthcare
Digital Transformation
India’s giant IT services sector
helps global companies
become digital and cloud
ready
abrdn New India Investment Trust plc 3
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Financial Highlights
31 March 2025 31 March 2024 % change
Share price (mid market) 756.00p 652.00p +16.0
Net asset value per Ordinary share
A
889.34p 819.56p +8.5
Discount to net asset value
A
15.0% 20.4%
Equity shareholders’ funds (net assets) £425,599,000 £427,054,000 –0.3
Market capitalisation £361,790,000 £339,744,000 6.5
Net gearing
A
3.9% 4.1%
Total return per share 62.69p 168.85p
Operating costs
Ongoing charges ratio
A
0.95% 1.00%
A
Considered to be an Alternative Performance Measure. See pages 82 to 84 for further information on the calculation of these Alternative Performance Measures.
Performance (total return, in Sterling terms)
1 year 3 year 5 year 10 year
% return % return % return % return
Share price
A
+16.0 +34.5 +131.0 +115.3
Net asset value per Ordinary share
A
+8.5 +27.5 +116.6 +131.1
Adjusted net asset value per Ordinary share
AB
+11.7 +34.9 N/A N/A
MSCI India Index (sterling adjusted) +0.7 +27.2 +150.8 +151.2
A
Considered to be an Alternative Performance Measure. See pages 82 and 84 for further information on the 1 year % return.
B
The NAV adjustment is made because the Company’s benchmark, the MSCI India Index, does not take account of the Indian Capital Gains Tax suffered by the Company. This
measure is also used for the performance related tender, as discussed in the Chairman’s Statement. See page 82 for further information on the NAV adjustment.
Source: Aberdeen plc, Morningstar & Lipper.
Financial Hi
g
hli
g
hts and Performance
4 abrdn New India Investment Trust plc
Overview
Financial Highlights and Performance 3
Strategic Report
Chairman’s Statement 6
Investment Manager’s Report 9
Investment Case Studies 12
Overview of Strategy 14
Promoting the Success of the Company 20
Performance 22
Portfolio
Ten Largest Investments 24
Portfolio 25
Sector Analysis and Sector Allocation 27
Currency Analysis 28
Governance
Board of Directors 30
Directors’ Report 33
Statement of Corporate Governance 41
Audit Committee’s Report 42
Directors’ Remuneration Report 46
Statement of Directors’ responsibilities in respect of the
Annual Report and financial statements 49
Independent Auditor’s Report to the Members of abrdn
New India Investment Trust plc 50
Financial Statements
Statement of Comprehensive Income 58
Statement of Financial Position 59
Statement of Changes in Equity 60
Statement of Cash Flows 61
Notes to the Financial Statements 62
Alternative Performance Measures 82
Alternative Investment Fund Managers Directive
Disclosures (unaudited) 85
Corporate Information
Information about the Investment Manager 87
Investor Information 90
General
Notice of Annual General Meeting 94
Glossary of Terms 100
Additional Shareholder Information 105
Contents
abrdn New India Investment Trust plc 5
Strategic
Report
6 abrdn New India Investment Trust plc
Dear Shareholder
After your Company’s excellent performance in the six
months ended 30 September 2024, we had to navigate a
significant market correction in the second half of our
financial year. This pull-back followed a prolonged period
of exceptional performance for equities in the Indian
market, which has been among the top-performing
emerging markets over recent years.
I am happy to say that your Company’s share price total
return in sterling terms was still a strong 16.0% for the year
ended 31 March 2025. The Company’s net asset value
(“NAV”) per share rose by 11.7% in sterling terms (total
return), after adjusting for Indian capital gains tax,
continuing a strong turnaround in performance first seen
in the previous financial year. The total return of our
Benchmark, the MSCI India Index, was 0.7%. These returns
were earned despite a drag on performance from the
depreciation of 4.5% in the exchange rate between the
Indian rupee and sterling over the year (see the chart on
page 28).
I am particularly pleased that your Company also
significantly outperformed the Benchmark in each of the
two halves of the year. Our results in the second half
underscore the resilience of the portfolio during periodic
market downturns.
The largest positive contributions to performance came
from good stock picking in the energy, financials,
communication services and consumer discretionary
sectors. Investments in small-cap and mid-cap stocks
were among the top contributors. Our quality investment
philosophy has paid off, as evidenced by the decision to
avoid holding India’s most valuable company, Reliance
Industries, on governance and transparency grounds.
There were several factors that drove the stock market
lower in the second half of the financial year. On the
domestic Indian front, weaker consumer spending, lower
government expenditure, and tight liquidity weighed on
market sentiment. Externally, US President Donald Trump’s
re-election to the White House triggered a broad-based
rotation of capital out of emerging markets on the fear of
imminent tariffs, geopolitical tensions, and the impact of a
strengthening US dollar on emerging market currencies.
India was no exception.
Your Manager believes this slowdown in growth to be
temporary. Valuations fell to more reasonable levels in the
second half, which provided an opportunity selectively to
increase the holdings of certain stocks, at lower cost, given
the positive long-term outlook for India.
Shareholder value and Change in
Management Fees Calculation
Your Board is very aware of the pressures on the
investment trust sector as a whole and we take seriously
our obligations to be proactive and responsive to
shareholder needs.
Our first priority is, of course, for your Company’s
Manager to provide good performance in a variety of
market conditions.
We continue to work closely with the Manager on
performance issues. The Board travelled to Singapore in
February 2025 to hear from James Thom and Rita
Tahilramani, as the Company’s investment managers, of
improvements to portfolio construction which were
designed to increase conviction in the portfolio. The Board
also met with the Asia-Pacific leadership for Aberdeen
Group plc to learn of the Manager’s continued
commitment for, and investment in, its Indian equities
research. Accompanied by James and Rita, the Board
then visited Chennai and Mumbai and met with current
and prospective investee companies, following which the
Board left India with a renewed sense of its immense
potential for investors.
The Board continues to implement measures to add value
for shareholders introducing, firstly, a five-yearly
performance-related conditional tender in 2022. This is
triggered if the Company’s NAV total return
underperforms the Company’s Benchmark over the five-
year period from 1 April 2022. Should that occur,
shareholders will be offered the opportunity to realise up
to 25 per cent of their investment for cash at a level close
to NAV. For these purposes, the Company’s NAV per share
is adjusted for Indian capital gains tax (the “Adjusted NAV”)
to enable a like-for-like comparison with the Benchmark.
Pleasingly, over the first three years to 31 March 2025 of
the five-year measurement period, your Company’s
Adjusted NAV total return was 34.9%, well ahead of the
Benchmark’s total return of 27.2% (please see the
Alternative Performance Measures on page 84 for
further information).
Section Divider Text
Chairman’s Statement
abrdn New India Investment Trust plc 7
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Secondly, as announced today, we have negotiated a
change to the management fees following the last
decrease two years ago. The Board had been seeking a
further reduction in the fees paid to the Manager, as well
as greater alignment with the returns earned by
shareholders from owning the shares of the Company.
Accordingly, the Board is pleased to announce that it has
reached agreement with the Manager to calculate its
management fee based on market capitalisation in place
of net assets that will, based on the current share price,
result in a reduction in management fee. With effect from
1 April 2025, the annual investment management fee is
calculated at a rate of 0.8% in respect of the first £300
million of the Company’s market capitalisation and a rate
of 0.6% in respect of the Company’s market capitalisation
in excess of £300 million. The Manager will also receive an
annual secretarial and fund administration fee of £45,000,
plus applicable VAT, which is subject to increase annually
for inflation.
Thirdly, your Company has faced a stubbornly high
discount to NAV for many years. Our policy is to undertake
share buybacks when the Board believes that this is in the
best interests of shareholders, while also having regard to
the overall size of the Company. Buybacks have been
meaningfully accretive to NAV, particularly at higher, long-
term discount levels. We stepped up the level of buybacks
over the year under review: the Company bought back
into treasury 4,252,117 (2024 – 3,702,011) Ordinary shares.
This was equivalent to 8.2% of the Company’s issued share
capital (excluding treasury shares) at 1 April 2024 (2023 –
6.6%). Between 1 April 2025 and 19 June 2025, as the
latest practicable date prior to approval of this Report, an
additional 1,419,000 Ordinary shares were bought back.
The portfolio’s performance, these buybacks and the
Manager’s energetic marketing efforts have been positive
for the discount, which narrowed from 20.4% to 15.0%
over the financial year and, as at 19 June 2025 (as the
latest practicable date), had narrowed further to 8.4%.
The Board continues to explore options to reduce
the discount.
The Manager continues to seek the necessary local
regulatory permissions to make unlisted investments
in India.
The Board encourages shareholders to visit the
Company’s website (www.abrdnnewindia.co.uk) for the
latest information and monthly factsheets as well as
accessing podcasts and thought-leadership and macro
research articles published by the Manager.
Gearing and New loan facility
As at 31 March 2025, £19.5 million (2024 - £26m) had been
drawn from the £30m bank loan provided by Royal Bank
of Scotland International, which resulted in net gearing of
3.9% (2024 – 4.1%), reflecting a well-timed reduction of
£6.5m from June 2024. During the year, this gearing had a
marginally positive impact on returns, though the Board
and Manager are conscious of the increased interest cost
of gearing and they keep the level of gearing under
regular review. This bank loan was due to expire in August
2025; however, on 19 June 2025, the Company entered
into a new, three-year, £30 million secured revolving credit
facility with BNP Paribas London Branch at an interest rate
which represents a considerable saving compared to the
rate charged on the expiring loan.
The ability to gear is one of the advantages of the closed
ended company structure and your Manager continues to
seek opportunities to deploy this facility for the benefit
of shareholders.
Impact of Indian Capital Gains Tax
The Company, along with other investment vehicles, is
subject to both short-term and long-term capital gains
taxes in India on the growth in the value of its investment
portfolio. These taxes are only paid when the underlying
investments are sold and profits are crystalised although
accounting standards require that funds accrue for any
unrealised long term capital gains taxes. These accruals
are deducted from the net asset value of the portfolio and
therefore also affect the Company’s performance figures.
By contrast, taxes on capital gains are not accrued for or
reflected in the Benchmark. Regrettably, the Indian
Government increased the rates for capital gains tax in
July 2024. At 31 March 2025, this tax accrual amounted to
£20.6 million, a small increase on the previous year end
figure of £19.4 million, and equivalent to a reduction in the
NAV per share of 43.6p, or 4.8%, at 31 March 2025 (2024 –
37.2p or 4.5%).
Appointment of new Auditor
As explained in more detail in the Audit Committee’s
Report on page 45, during the year the Board, via the Audit
Committee, undertook an audit tender process and,
following consideration of the tenders received, the Board
decided to appoint Deloitte LLP as the Company’s Auditor
for the year ending 31 March 2026. KPMG LLP will
therefore not be seeking re-appointment as Auditor at the
Annual General Meeting and will issue a statutory
statement pursuant to Section 519 of the Companies
Act 2006 which will be provided separately with the
Annual Report.
8 abrdn New India Investment Trust plc
A resolution to appoint Deloitte LLP as the Company’s
Auditor will be proposed at the Annual General Meeting.
Annual General Meeting
The Company’s AGM will be held at 18 Bishops Square,
London E1 6EG at 12.30pm on Tuesday 23 September
2025. The AGM provides shareholders with an opportunity
to ask any questions that they may have of either the
Board or the Investment Manager. Voting on the
resolutions to be put to shareholders will be conducted by
way of a poll and those attending are encouraged to bring
with them a letter of corporate representation in respect
of their ownership of shares in the Company.
The Directors look forward to meeting as many of you as
possible over refreshments which will follow the AGM.
Shareholders, whether attending the AGM or not, are
encouraged to submit questions for the Board and/or
Investment Manager, in advance, by email to
new.india@aberdeenplc.com.
Online Shareholder Presentation
In order to encourage and promote interaction and
engagement with the Company’s shareholders, the
Company is holding an interactive Online Shareholder
Presentation (the “Presentation”) at 11.00am on 16
September 2025, to cater for those shareholders who
may be unable to attend the AGM. During the
Presentation, shareholders will receive a short introduction
from the Chairman and portfolio update from the
Investment Manager, followed by an interactive question
and answer session. The Presentation is being held ahead
of the AGM in order to allow shareholders to submit their
proxy votes prior to the meeting, after hearing an update
on the portfolio and performance. Further information on
how to register for the Presentation may be found on the
Company’s website.
Board
After serving as a Director since 2016, I shall be retiring
from the Board on 31 March 2026. I am pleased to
announce that David Simpson, the Senior Independent
Director, will become the Chairman of the Company from
1 April 2026, following his retirement as a director and
chairman of Ecofin Global Utilities and Infrastructure Trust
plc in March 2026. David’s commercial experience in India
and his knowledge of investment companies makes him
uniquely suited to lead the Board and the Company. This
will therefore be my final Annual Report Chairman’s
Statement and my last AGM on 23 September 2025. I
should like to take this opportunity to thank all
shareholders for their support of the Company during my
tenure, both as a Director and as Chairman.
Update
From 31 March 2025 to 19 June 2025 (the latest
practicable date prior to approval of this Report), the NAV
per share total return was 0.2% while the Benchmark total
return was 0.7%. Further to a considerable narrowing of
the discount over the same period, from 15.0% to 8.4%, the
share price total return was 6.9%.
Outlook
In the Half-Yearly Report, I highlighted India’s position as a
bright spot of growth within the Asia-Pacific region,
characterised by consistent economic expansion. While
this is still the case, the six months ended 31 March 2025
saw a recalibration of investor expectations, resulting
in a significant market correction which our
portfolio withstood.
Investing in India requires accepting market volatility and a
degree of risk. Near-term challenges include a slowdown
in the global economy and heightened geopolitical
tensions, including the recent exchanges of fire with
Pakistan. On the other hand, investor concerns about
relatively high valuations of Indian companies have been
alleviated to some extent by recent market declines.
India’s growth prospects remain undiminished. The
country benefits from favourable demographics with a
large, relatively young population and a growing middle
class. Indian corporations are becoming increasingly
sophisticated. Your Manager has adapted the portfolio to
prevailing market conditions and is incorporating new
ideas that are poised to benefit from structural trends.
The Board and I remain confident in the Company’s long-
term success.
Michael Hughes
Chairman
24 June 2025
Chairman’s Statement
Continued
abrdn New India Investment Trust plc 9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
In the year ended 31 March 2025, the Company’s net
asset value (“NAV”) rose by 11.7% in sterling terms (total
return), adjusted for Indian capital gains tax.
The Company has continued to recover most of the
underperformance seen in 2021 and 2022 for two
consecutive years now, as we have stuck to a quality
investment philosophy and repositioned the portfolio
towards promising market segments with long
growth runways.
Market review
Since September 2024, when the Indian stock market hit
an all-time high, we have witnessed a significant pullback
and profit taking. We have seen a more acute correction
in the small-and-mid-cap (“SMID”) space, which is not
surprising given valuations in that segment were getting
frothy. In contrast to developed markets, discounts for
SMID stocks are lower than those for large-cap stocks in
India with domestic investor interest sustaining higher
valuations for the former. While our portfolio is skewed
more towards large cap, our considerable SMID exposure
delivered strong performance in calendar 2024, and
considering this market correction, we are evaluating
these stocks through a bottom-up quality lens.
In this environment, quality stocks have been resilient
across the portfolio, including the core positions that
contributed to relative returns, particularly in the last three
months of the year. As such, the Company was able to
deliver strong absolute returns over the full year that
were significantly ahead of the 0.7% total return for
the Benchmark.
There were several factors that drove the stock market
lower in the second half of the year under review. On the
domestic front, weaker consumer spending, lower
government expenditure, and tight liquidity weighed on
market sentiment. Externally, US President Donald Trump’s
re-election to the White House triggered a broad-based
rotation of capital out of emerging markets on the fear of
imminent tariffs, geopolitical tensions, and the impact of a
strengthening US dollar on emerging market currencies.
India was no exception.
The central bank took steps to boost liquidity in the
market, cutting interest rates by 0.25% in February 2025
and by another 0.25% in April 2025. Subsequently, in June
2025, it cut rates by a deeper-than-expected 0.5% and
also announced a 1% cut to the cash reserve ratio that will
inject additional liquidity into the financial system in a
phased manner over the course of the fourth quarter. We
expect this to act as a boost to the banking sector and to
the economy more broadly.
Meanwhile, on the fiscal side, the Indian Government’s
FY2026 budget focused on consumption support for the
middle class through readjusting income tax brackets to
provide relief to taxpayers.
We continue to believe that India is structurally well
placed, in terms of its demographics, relatively supportive
macroeconomic environment, and political stability. This
holds true in light of the current uncertainties surrounding
President Trump’s “reciprocal” tariffs on US trading
partners, including India - in our view, India is relatively
better placed compared to other emerging markets.
Performance overview
The portfolio delivered robust performance over the year,
with the strongest returns coming from stock selection in
the energy, financials, communications services and
consumer discretionary sectors.
Our non-benchmark SMID cap position in Aegis Logistics
did exceptionally well over the period, being the top stock
performer. The share price has enjoyed a strong run as
investors finally recognised what we had long seen; that
this was a high quality, high growth small-cap stock that
had been mispriced by the market. We scaled up the
holding due to our strong conviction, despite the inherent
volatility of small-cap stocks. Aegis continues to report
strong performance with good underlying growth across
the business that gives us confidence to maintain our
position. Not holding Reliance Industries also added to
relative returns, as the Benchmark bellwether lagged on
softer gross refining margins and slowing retail business
growth. We continue to avoid Reliance Industries and its
subsidiaries on corporate governance grounds and
capital allocation concerns.
Within the financials sector, the portfolio’s private sector
banks did relatively better than peers amid the tight
liquidity environment. ICICI Bank, one of the largest
absolute positions in the portfolio, outperformed after
reporting good results with standout deposit growth and
asset quality. While HDFC Bank, another significant
portfolio position, initially underperformed in the period as
investors feared loan growth could be restricted and
margins squeezed. We saw a gradual turnaround in the
share price by the end of the Company’s year.
Accordingly, reducing our position in the lender initially
weighed on overall relative returns, which was offset by
not holding other lower quality names in the banking sub-
sector. Meanwhile, the Reserve Bank of India rolled back its
anticipated regulatory tightening while also reducing the
burden on microfinance loans and bank loans to non-
bank lenders.
Investment Mana
g
er’s Report
10 abrdn New India Investment Trust plc
Our non-benchmark position in financial services firm, KFin
Technologies, also did well. We introduced the company to
the portfolio at the start of the calendar year 2024, and its
share price rose almost 200% over the year, supported by
steady flows into domestic mutual funds. Seen as the
proxy for the rise of the broader Indian equity market, the
stock suffered from the post-September correction,
seeing some sharp profit taking in recent months, before
improving again during March.
Holding both Bharti Airtel and Bharti Hexacom in the
telecommunication sub-sector added to our
performance. Both stocks performed well over the year
as a result of strong fundamental characteristics, such
as improving balance sheets and momentum in
non-cellular businesses.
Within consumer discretionary, our core autos exposure in
Mahindra & Mahindra did well. Indian Hotels, another new
addition to the portfolio, also performed, where it is primed
to benefit from the multi-year growth potential in the
domestic travel industry, with consumers seeking more
premium experiences and services.
A detractor from performance was our stock selection in
the industrials sector, specifically in the capital goods sub-
sector, where prices corrected following a strong run and
amid a slower-than-expected pace of government and
private spending. However, we continue to highlight
‘Building India’ as one of our six key investment themes
for the market, and remain invested accordingly,
maintaining positions in the highest conviction stocks
in this sector whilst also protecting the portfolio from
near-term volatility.
Overall, we think that the pull-back seen in the Indian stock
market since September offered a much-needed pause,
helping to ease valuations to more reasonable levels and
removing some of excess froth from the market. This
happened after three years of robust performance. In
some cases, particularly in the SMID space, we have seen
over-reactions in terms of downwards share price moves,
which presents buying opportunities for bottom-up stock
pickers like us.
Portfolio activity
We have continued to introduce attractive stocks that
meet our quality criteria from a bottom-up perspective
and are supported by favourable structural trends.
Considering prevailing market dynamics, we have also
added to our exposure in the health care sector, which we
expect to be more resilient in periods of short-term
economic volatility and potential growth slowdown.
We continue to also like the communication services
sector where the outlook is favourable, hence we have
topped up our existing holdings there. We funded the
above moves by taking a bit of money out of the more
cyclical sectors such as real estate and industrials, where
we anticipate some near-term challenges.
Some of the stocks added during the year are:
Indian Hotels – one of the largest hospitality companies,
which has evolved from a single brand luxury hotel to a
range of brands across the hospitality ecosystem,
catering to different price segments. Besides its strong
brands, the company has a robust pipeline and
healthy financials.
Poly Medicure – manufactures and supplies a wide variety
of consumable medical devices. We like the strong
management team that is becoming increasingly investor
friendly and has a good record of surpassing its own
guidance. The company has a net cash balance sheet
despite investing heavily in doubling its production
capacity over recent years.
Brigade Enterprises – a real estate company
headquartered in Bangalore, with businesses in the
residential, office, retail and hospitality segments. It has a
competitive edge over larger players in terms of higher
corporate governance and transparency.
Concord Biotech – active pharmaceutical ingredients
(“API”) manufacturer focused on fermentation-based APIs
enjoying favourable competition dynamics, given the
specialised expertise required. The company's main driver
is the steady growth of its existing core products, with the
potential to enlarge its API portfolios further.
We continue to seek to secure local regulatory
permissions to make unlisted investments in India.
Outlook
After being one of the fastest-growing major economies
in recent years, the first tinges of doubt are creeping into
India’s rosy growth picture: the economy is showing signs
of a slowdown, the stock market corrected sharply in late
2024 and near-term corporate earnings expectations
have become more muted. Multiple factors have
contributed to this apparent slow-down, including
weaker-than-expected consumer demand and reduced
public spending, as well as relatively soft government
revenue. In our view, this is a temporary cyclical slowdown
and, in part, had been self-inflicted with the government
focusing previously on fiscal consolidation whilst the
central bank has tightened liquidity.
Investment Mana
g
er’s Report
Continued
abrdn New India Investment Trust plc 11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The long-term structural story remains intact, with little
change to the key investment themes. There are also
signs emerging of a long overdue recovery in rural
demand, helped by a good monsoon while the upcoming
harvest season should help keep food prices at
manageable levels. The consumer-focused FY26 Indian
national budget is further expected to help with middle
income consumption demand. There is also emphasis
from the government for more public private partnerships
for infrastructure projects while the ‘Make In India’
manufacturing focus continues, with more money
allocated to production-linked incentive schemes to
encourage multinationals to set up production bases in
the country.
On the external front, India is relatively more insulated
from the potential impact of stiff tariffs compared to other
markets given that the US has a relatively lower trade
deficit with the country. The recent meeting between
President Trump and Prime Minister Narendra Modi at the
White House underscored the importance to US interests
of the bilateral relationship in the Indo Pacific region. That
said, currency turbulence could pressure the Indian rupee,
but the Reserve Bank of India has ample forex reserves to
come to the rescue.
One significant development, after the period end, was
heightened geopolitical tension between India and
Pakistan. Both sides exchanged fire in April 2025 after a
militant attack on tourists in India-administered Kashmir.
This escalation repeated a similar outburst in 2019 where
the responses were targeted and measured.
Subsequently, the countries agreed to a ceasefire, which,
at the time of writing, continues to hold. This serves as a
reminder of the geopolitical risk that India faces with
regards to its neighbours that cannot be overlooked
by investors.
From a stock-picking perspective, we are still finding
pockets of good growth and quality across various sectors
and sub-sectors even in this temporary market downturn.
The Company’s downside is well-protected given our
quality focus, and our defensive holdings are in a good
position in case of profit-taking, and any correction in their
share prices would be, in our view, a buying opportunity.
James Thom and Rita Tahilramani
abrdn Asia Limited
Investment Manager
24 June 2025
12 abrdn New India Investment Trust plc
HDFC Bank
A company with a strong competitive moat in the form of
its mortgage products, having figured out how to lend to
the middle- to low-income segment with the right systems
and processes.
Mergers can be tricky and especially when the liquidity
environment starts turning against you in the months after.
This was what happened to HDFC Bank after July 2023,
when it merged with its former parent company,
mortgage lender HDFC.
The merger made strategic sense: it would boost
earnings, book value and capital. Integration risks seemed
minimal because of similar corporate cultures. It would
create a bank that was more than twice as big as the
country’s next largest private bank in an industry where
scale matters.
As long-term shareholders of both HDFC and HDFC Bank,
we supported the merger and were pleased that the
boards and management had taken such a bold step to
boost shareholder value.
Following the merger, however, came a period of
operational indigestion as the management team worked
through the myriad issues involved in integrating the two
institutions. The company disappointed the market with
recalibrations of the financial statements and a slowdown
in share price growth.
Progress was further hampered by a liquidity deficit in the
banking system that widened at the start of 2024 amid a
tightening of monetary policy by the central bank. This
made it harder for the newly formed HDFC Bank to shore
up its funding sources and to ultimately reposition itself for
future growth.
Today, HDFC Bank is in a much better place. Deposit
growth has picked up and is now being helped along by an
easing of the liquidity situation in India as monetary policy
loosens. This is now positioning the bank to grow once
again and to reap the benefits the merger had promised
as India’s largest private bank by assets and among the
world’s top 20 leading banks by market capitalisation
1
.
1
HDFC Bank emerges as India’s most valuable banking brand globally
| Press Release | Brand Finance
HDFC Bank boasts a strong brand and now has a network
with more than 90 million customers
2
, over 9,000
branches, and about 21,000 ATMs across 4,150 cities and
towns in India. The bank holds stakes in HDFC Life (50.3%
stake), HDFC Ergo General Insurance (50.3%), and HDFC
Asset Management (52.5%), all market-leading
businesses
3
.
Mortgage penetration in India is still only 11% of GDP
compared to 52% in the US
4
. Urbanisation and
demographics are driving demand, with over 65% of the
population still under 35 years old
5
, while rising wealth and
falling interest rates are improving affordability.
When it comes to asset quality, the track record of HDFC
Bank is solid. As of March 2025, it had a strong and sticky
deposit base and a rock-solid balance sheet with a capital
adequacy ratio of 19% compared against a regulatory
minimum of 12%
6
.
HDFC Bank also leads the market on the sustainability
front, where it has committed to be carbon-neutral by
financial year 2032. Its board has also approved a
sustainable finance framework, along with a second party
opinion.
All in, after initial merger pains, we regard HDFC Bank as
well positioned for opportunities arising from the structural
growth of financial services in India and remaining a key
player in the domestic banking landscape for many years
to come.
2
How India's fast-growing middle class propelled HDFC Bank into the Global 500 |
Fortune Asia
3
Q4FY25 earnings presentation, HDFC Bank
4
India: a powerhouse in the spotlight - Financial Times - Partner Content by Ninety One
5
🤔 From Young Nation to Ageing Economy - What’s Next for India?
6
HDFC Bank, Financial Results (Indian GAAP) for the quarter ended March 31, 2025
Investment Case Studies
abrdn New India Investment Trust plc 13
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Indian Hotels
In the early 1900s, Jamsetji Tata was refused entry to
Watson’s Hotel, one of the poshest hotels and an exclusive
European-only establishment in Bombay at the time
7
. This
snub led the founder of the Tata group to launch India’s
first luxury hotel in 1903, the Taj Mahal Palace, with the aim
of rivalling the best in the world. The Taj was the first hotel
in the country to have electricity and, more than a century
on, it has become the crown jewel within Indian Hotels
(IHCL), the hotel arm of the Tata group and the largest
hospitality group across South Asia with a global portfolio
of around 360 hotels
8
.
Today, “Taj” is an iconic brand that is recognised across
the world and is part of the reason why we invested in
Indian Hotels. We also see the group as benefiting from
emerging structural growth trends in the hospitality sector
in India and across South Asia. As the middle class grows
and Indians turn increasingly affluent, we are seeing
consumption preferences change and aspirations evolve.
With this comes the rise of premiumisation, experiential
travel and brand consciousness, all of which plays into
Indian Hotels’ rich heritage and strong branding. Indian
Hotels is expanding its portfolio to include more upscale
and luxury hotels, which are in high demand.
Travel and tourism are also among the fastest-growing
economic sectors in India. The tourism industry regained
its 5% contribution to India’s GDP in FY23
9
, and the World
Travel and Tourism Council expects this number to reach
the global average of 10%, as the industry grows 7%
annually over the next decade
10
. This positive outlook is
borne out by the latest industry numbers, which also
highlights a demand-supply gap. Occupancy is rising,
room rates are firming and revenue per available room
(RevPAR) is also increasing. In February 2025, hotel room
occupancy increased by 2-4% compared to last year. The
average room rates (ARR) went up by 14-16% year-on-
year, crossing Rs 10,000 for the first time, while RevPAR
also rose by 19-21%
11
.
7
How a Racial Snub Inspired Jamsetji Tata To Build The Taj Mahal Palace Hotel In
Mumbai | Times Now
8
Indian Hotels, Global Conference Call, Q3 FY25
9
Tourism industry regains 5% GDP contribution in FY23: Economic Survey | Budget 2024
News - Business Standard
10
India’s Travel & Tourism Industry Poised For Seven Percent Growth In The Coming
Decade, According To World Travel & Tourism Council - Travel And Tour World
11
Full rooms, firm rates and a sector in the sun - Industry Insights News | The Financial
Express (f0e6-c6b4-7a4-66d6)
Crucially, domestic tourism has sustained the sector post-
pandemic. Religious tourism accounts for over 60% of
domestic travel in India
12
. This is not lost on the central
government, which is investing to boost spiritual journeys.
States like Uttar Pradesh are developing tourist circuits
and Uttarakhand and West Bengal are enhancing
infrastructure for pilgrims. A rebound in foreign tourist
arrivals has also helped, along with India’s rising appeal as
a MICE (Meetings, Incentives, Conferences, and
Exhibitions) destination. Key cities like Delhi, Bangalore,
Chennai, and Hyderabad are seeing strong demand for
business travel, while leisure destinations like Goa and
Rajasthan are also performing well.
Within this promising landscape, Indian Hotels’
management remains optimistic about both the short-
term and medium-term outlook, citing sustained growth in
demand. The group recently reported impressive
quarterly results with revenue growth of 29% year on year
and EBITDA growth of 32%, according to the company’s
quarter 4 results. The company plans to add 17,600 keys in
the next four to five years, adopting a mainly asset-light
model which will help further boost its already healthy
return metrics, while its digital initiatives and loyalty
programmes are also seeing a good uptake.
From our perspective, Indian Hotels serves as a strong
proxy for the under-penetration of the branded hotel
segment in India and the broader infrastructure
development and economic growth promise of the entire
country.
Indian Hotels has also impressively grown beyond what its
founder Jamsetji Tata once said, “If you cannot make it
greater, at least preserve it.”
12
Tourism industry regains 5% GDP contribution in FY23: Economic Survey | Budget 2024
News - Business Standard
14 abrdn New India Investment Trust plc
Business Model
The business of the Company is that of an investment
company which continues to qualify as an investment
trust for UK capital gains tax purposes. The Directors do
not envisage any change either to this model or to the
Company’s activities in the foreseeable future.
Investment Objective
The Company aims to provide shareholders with long
term capital appreciation by investment in companies
which are incorporated in India, or which derive significant
revenue or profit from India, with dividend yield from the
Company being of secondary importance.
Investment Policy
The Company invests primarily in Indian equity securities.
Delivering the Investment Policy
Risk Diversification
The investment policy is flexible, enabling it to invest in all
types of securities, including equities, debt and convertible
securities in companies listed on the Indian stock
exchanges or which are listed on other international
exchanges, and which derive significant revenue or profit
from India. The Company may, where appropriate, invest
in open-ended collective investment schemes and
closed-end funds which invest in India and are listed on
the Indian stock exchanges. The Company is free to invest
in any particular market segment or geographical region
of India or in small, mid or large capitalisation companies.
The Company may invest up to 10% of its NAV in
unquoted companies in aggregate, measured at the time
of each investment.
The Company’s portfolio will typically comprise in the
region of 25 to 50 holdings, but with due consideration
given to spreading investment risk. No individual issuer is
expected normally to represent a greater weight in the
portfolio than the higher of (i) 10% of the Company’s net
assets or (ii) the individual issuer’s weight in the MSCI India
Index (in sterling terms) plus 2%, both as measured at the
time of each investment, although there is a maximum
permitted exposure to a single issuer of 20% of the
Company’s net assets at all times.
Gearing
The Company is permitted to borrow up to 25% of its net
assets (measured when new borrowings are incurred). It
is intended that this power should be used to leverage the
Company’s portfolio in order to enhance returns when
and to the extent that it is considered appropriate to
do so. Under normal circumstances, over the longer term
and in tandem with the rising value of the Company’s
investments, gearing is expected to improve returns.
The Company’s gearing is essentially structural in nature
but, in addition, may be used for specific opportunities
or circumstances. The Directors take care to ensure
that borrowing covenants permit flexibility of
investment policy.
Currency, Hedging Policy and Derivatives
The Company’s financial statements are maintained in
Sterling even though, because of its investment focus,
nearly all of its portfolio investments are denominated and
quoted in the Indian Rupee. Although it is not the
Company’s present intention to do so, the Company may,
where appropriate and economic to do so, employ a
policy of hedging against fluctuations in the rate of
exchange between Sterling and other currencies in which
its investments are denominated. Cash balances are held
in such currency or currencies as the Manager considers
appropriate, although it is expected that this would
primarily be Sterling.
Although the Company does not employ derivatives
presently, it may do so, if appropriate, to enhance portfolio
returns (of a capital or income nature) and for efficient
portfolio management, that is, to reduce, transfer or
eliminate risk in its investments, including protection
against currency risks, or to gain exposure to a
specific market.
Investment Restrictions
It is the investment policy of the Company to invest no
more than 15% of its gross assets in other listed investment
companies (including listed investment trusts). The
Company held no investments in other listed investment
companies during the year ended 31 March 2025.
Benchmark
The Company’s Benchmark is the MSCI India Index
(Sterling-adjusted). The Board also considers the Adjusted
NAV (see Glossary on page 100) in relation to the
conditional tender offer announced in March 2022.
Overview of Strate
g
y
abrdn New India Investment Trust plc 15
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Key Performance Indicators
At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in
achieving its objective. The main Key Performance Indicators (“KPIs”) identified by the Board in relation to the Company,
which are considered at each Board meeting, are as follows:
KPI Description
Performance of NAV and share price
compared to the Benchmark
The Board considers the Company’s NAV return, the Adjusted NAV return and share price
return, all relative to the Benchmark, to be the best indicators of performance over time.
The figures for this year and for the past three, five and ten years are set out on page 3 for
the NAV return and share price total return while a graph showing NAV and share price
total return performance against the Benchmark over the past five years is shown on
page 22.
Discount to NAV The discount at which the Company’s share price trades relative to the NAV per share is
monitored by the Board. A graph showing the discount over the last five years is shown on
page 22.
Ongoing charges The Board regularly monitors the operating costs of the Company and the ongoing
charges for this year and the previous year are disclosed in Financial Highlights and
Performance on page 3.
Principal Risks and Uncertainties
There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial
position, performance and prospects. The Board has carried out a robust assessment of these risks, including emerging
risks, which include those that would threaten its business model, future performance and solvency. The principal risks
associated with an investment in the Company’s shares are published monthly in the Company’s factsheet which is
available from the Company’s website: abrdnnewindia.co.uk. The principal risks and uncertainties, and emerging risks,
faced by the Company are reviewed annually by the Audit Committee in the form of a detailed risk matrix and heat map
and they are described in the table below, together with any mitigating actions.
In addition, the Board has identified, as an emerging risk, the general escalation of geo-political risk globally. This may
have implications for investors in India (see “Single Country Risk” on page 16). In addition, the Board considers the
implications for the Company’s investment portfolio of a changing climate to constitute an emerging risk. The Board is
also conscious of the development of Artificial Intelligence (“AI”), which may have a potentially positive or negative
impact at Company, sector and country level. A further emerging risk during the year was the US administration’s policy
on tariffs, where the eventual impact remains unclear due to the continuing negotiations across many jurisdictions,
including India (see “Market Risk” on page 16). The Board identifies emerging risks if and when they become material.
During the year, it also become evident across the investment sector as a whole that, due to the prevailing low level of
shareholder voting at general meetings, an activist investor with a large shareholding could seek to pass resolutions
which may not be in the best interests of shareholders as a whole. The Company has taken steps to improve shareholder
awareness of their ability to vote.
In all other respects, the Company’s principal risks and uncertainties have not changed materially since the date of the
previous Annual Report and are not expected to change materially for the current financial year.
An explanation of other risks relating to the Company’s investment activities, specifically market price, interest rate,
liquidity and credit risk, and a note of how these risks are managed, is contained in Note 17 to the financial statements.
16 abrdn New India Investment Trust plc
Overview of Strate
g
y
Continued
Description Mitigating Action
Strategic risk – inappropriate business strategy leads to lack of
demand for the Company’s shares, leading to its shares trading
at a persistent and anomalous discount to its Net Asset Value
The Board reviews its strategy and investment mandate annually
in the context of developments in markets and taking account of
investor feedback.
Market risk – falls in the prices of securities issued by Indian
companies, which may be caused by company-specific issues
or may be determined by local and international economic,
political, social, and financial factors, including pandemics,
natural disasters (arising from climate change or otherwise) or
geo-political conflicts.
The Investment Manager seeks to reduce market risk by investing
in a wide variety of companies with strong balance sheets and the
ability to generate increased earnings. In addition, investments are
made in diversified sectors in order to reduce the risk of a single
large exposure. The Investment Manager believes that
diversification should be looked at in absolute terms rather than
relative to the Benchmark. The performance of the portfolio
relative to the Benchmark and the underlying stock and sector
weightings in the portfolio against their Benchmark weightings are
monitored closely by the Board.
Poor investment performance – poor investment performance
leads to loss of asset value in comparison to the benchmark
and/or the peer group, and, over time, can lead to a widening of
the discount to NAV at which the Company’s shares trade.
The investment performance of the Manager is reviewed at each
Board meeting and compared to the benchmark and the peer
group. Exposure to a range of risk factors is also reviewed.
Discount – factors which affect the discount to NAV at which the
Ordinary shares of the Company trade. These may include the
popularity of the investment objective of the Company, the
popularity of investment trust shares in general, the investment
performance of the Company, and the ease with which the
Company’s Ordinary shares can be traded on the London
Stock Exchange.
The Board keeps under review the discount and undertakes
selective buyback of shares where to do so would be in the best
interests of shareholders, balanced against reducing the overall
size of the Company.
Single country risk – the Company invests in companies which
are incorporated in, or derive significant revenue or profit from, a
single country – India. Investing in a single country, which is also
an emerging market, is generally a higher risk strategy than
investing more widely, or in developed markets. There is likely to
be greater political and regulatory risk, and the standards of
disclosures and corporate governance may be less developed
than in developed markets. In addition, there may be specific
internal political and social issues, or wider geo-political issues,
including disputes between India and Pakistan, which could
lead to social upheaval, unrest, or conflict. These events may
lead to falls in equity markets, and also adverse foreign
currency movements.
The Company’s exposure to India is an integral part of its
investment strategy. Risk can be mitigated, to a degree, by the
monitoring of emerging risks, and by appropriate actions in
relation to portfolio construction, liquidity and gearing.
The Board is kept informed of political, regulatory and tax issues
affecting the portfolio.
The Board monitors the Rupee/Sterling exchange rate and
reviews the currency impacts on both capital and income
regularly, although the Company did not hedge its foreign
currency exposure during the year.
Supplier risk – The Company is dependent on the services
provided by third parties, and in particular the Manager and
Depositary. Failure by third parties to carry out their obligations
to the Company, or reputational issues or inadequate
succession arrangements, could disrupt the level of service
provided. In particular, the insolvency of the depositary or
custodian or sub-custodian, or a shortfall in the assets held by
The Board reviews the overall performance of the Manager and
all other key service providers on a regular basis. In particular, the
Depositary, BNP Paribas Trust Corporation UK Limited, presents to
the Board at least annually on the Company’s compliance with
the Alternative Investment Fund Managers Directive (“AIFMD”).
The Manager separately monitors the activities of the depositary
and reports to the Board on any exceptions arising.
abrdn New India Investment Trust plc 17
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Description Mitigating Action
that depositary, custodian or sub-custodian arising from fraud,
operational errors or settlement difficulties resulting in a loss of
assets owned by the Company. In addition, there is a risk of a
cyber-attack on the Company’s service providers which could
affect its ability to transact, monitor performance and report to
shareholders. There is also a risk of shareholder data held by the
registrar being compromised.
The Board monitors the cyber-security and business recovery
policy of all its service providers.
Financial and regulatory – the financial risks associated with the
portfolio could result in losses to the Company. In addition, failure
to comply with relevant regulation (including the Companies
Act, the Financial Services and Markets Act, the Alternative
Investment Fund Managers Directive, accounting standards,
investment trust regulations and the FCA UK Listing Rules,
Disclosure Guidance and Transparency Rules and Prospectus
Rules) may have an adverse impact on the Company.
Any change in the Company’s tax status or in taxation legislation
either in India or in the UK (including the tax treatment of
dividends, capital gains or other investment income received by
the Company) could affect the value of the investments held by
the Company and the Company’s ability to provide returns to
shareholders or alter the post-tax returns to shareholders.
In particular, the calculation of Indian capital gains tax which
may be due can be complex and is dependent on the
interpretation of the legislation, which may result in an under- or
over-provision being made.
The financial risks associated with the Company include market
risk, liquidity risk and credit risk, all of which are mitigated by the
Manager. Further details of the steps taken to mitigate the
financial risks associated with the portfolio are set out in Note 17 to
the financial statements.
The Board is responsible for ensuring the Company’s compliance
with applicable regulations. Monitoring of this compliance, and
regular reporting to the Board thereon, has been delegated to the
Manager. The Board receives updates from the Manager and AIC
briefings concerning industry changes.
In particular, the Board receives reports from the Manager
covering investment movements, the level and type of forecast
income and expenditure and the amount of proposed dividends
with a view to ensuring that the Company continues to qualify as
an investment trust under Chapter 4 of Part 24 of the Corporation
Tax Act 2010. A breach of these regulations would mean that the
Company is no longer exempt from UK capital gains tax on profits
realised from the sale of its investments.
The Indian capital gains tax provision is calculated by an
independent third party and reviewed at least half-yearly by the
Audit Committee.
Gearing – while the use of gearing should enhance the total
return on the Ordinary shares where the return on the
Company’s underlying assets is rising and exceeds the cost of
borrowing, it will have the opposite effect where the underlying
return is less than the cost of borrowing, further reducing the
total return on the Ordinary shares. A significant fall in the value
of the Company’s investment portfolio could result in a breach
of bank covenants and trigger demands for early repayment.
The Board is responsible for determining the gearing strategy for
the Company, with day-to-day gearing decisions being made by
the Investment Manager. Borrowings are short term in nature and
particular care is taken to ensure that any bank covenants permit
maximum flexibility of investment policy. The Board has agreed
certain gearing restrictions with the Manager and reviews
compliance with these guidelines at each Board meeting.
Loan agreements are entered into following review by the
Company’s lawyers.
Unlisted securities – the Company may invest in unlisted
securities, which may not be readily realisable, and may be
more difficult to value in the absence of a quoted price. There
may be less available information and less regulation in respect
of disclosures and corporate governance.
At 31 March 2025, there were no unlisted investments in the
portfolio. The Manager is currently seeking the necessary
regulatory permissions to make unlisted investments in India.
Once obtained, the Manager will conduct appropriate due
diligence in respect of any unlisted investments. Valuation will be
assessed by an independent third party and reviewed at least
half-yearly by the Audit Committee.
18 abrdn New India Investment Trust plc
Overview of Strate
g
y
Continued
Promoting the Company
The Board recognises the importance of updating existing
investors as well as promoting the Company to
prospective investors, with the aim of improving liquidity in
the Company’s shares and reducing the discount at which
they trade, thereby enhancing value. Communicating the
long-term attractions of the Company is key.
The Board seeks to achieve this through subscription to,
and participation in, the promotional programme run by
Aberdeen on behalf of the range investment companies
under its management.
The Company’s financial contribution to the programme is
matched by Aberdeen, whose promotional activities team
reports quarterly to the Board giving analysis of the
promotional activities as well as updates on the
shareholder register and any changes in the composition
of that register. The Company further supports the
Manager’s investor relations programme which involves
regional roadshows as well as promotional and public
relations campaigns.
Board Diversity and Succession
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow the Board to
fulfil its obligations. The Board also recognises the benefits,
and is committed to, the principle of diversity in its
recruitment of new Board members. The Board will
continue to ensure that all appointments are made on the
basis of merit against the specification prepared for each
appointment and will search widely when recruiting any
new Director with a view to maximising diversity.
Consequently, the Company does not consider it
appropriate to set specific diversity targets. At 31 March
2025, there were three male Directors and two female
Directors on the Board.
The Board has agreed a policy whereby no Director,
including the Chairman, shall serve for longer than the
ninth AGM after the date of their initial date of
appointment as a Director unless in relation to
exceptional circumstances.
Environmental, Social and Human
Rights Issues
The Company has no employees as it is managed by
abrdn Fund Managers Limited and there are therefore no
disclosures to be made in respect of employees. The
Manager’s responsible investment policy is outlined on
page 88.
Due to the nature of the Company’s business, being a
company that does not offer goods and services to
customers, the Board considers that it is not within the
scope of the Modern Slavery Act 2015 because it has no
turnover. The Company is therefore not required to make
a slavery and human trafficking statement.
Notwithstanding this, the Board considers the Company’s
supply chains, dealing predominantly with professional
advisers and service providers in the financial services
industry, to be low risk in relation to this matter.
Global Greenhouse Gas Emissions and
Streamlined Energy and Carbon Reporting
(“SECR”)
All of the Company’s activities are outsourced to third
parties. The Company therefore has no greenhouse gas
emissions to report from the operations of its business, nor
does it have responsibility for any other emissions
producing sources under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations
2013. For the same reason as set out above, the
Company considers itself to be a low energy user under
the SECR regulations and therefore is not required to
disclose energy and carbon information.
Task Force for Climate-related Financial
Disclosures (“TCFD”)
Under UKLR 11.4.22R, the Company, as a closed ended
investment company, is exempt from complying with the
Task Force on Climate-related Financial Disclosures
(“TCFD”).
Whilst TCFD is currently not applicable to the Company,
the Manager has produced a product level report (the
“Carbon Report”) for the Company in accordance with the
FCA’s rules and guidance regarding the disclosure of
climate-related financial information consistent with
TCFD requirements. These disclosures are intended to
help meet the information needs of market participants,
including institutional clients and consumers of financial
products in relation to the climate-related impact and
risks of the Manager’s TCFD in-scope business. The
Carbon Report, for the year ended 31 December 2024, is
available in ‘Key documents’ on the Company’s website.
abrdn New India Investment Trust plc 19
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Viability Statement
The Company does not have a fixed period strategic plan,
but the Board formally considers risks and strategy on at
least an annual basis. The Board regards the Company,
with no fixed life, as a long-term investment vehicle, but for
the purposes of this viability statement has decided that a
period of five years is an appropriate period over which to
report. The Board considers that a five year period reflects
the expected time horizon for an investment in the shares
of the Company and also represents a balance between
the Board’s confidence in the long-term viability of the
Company and the inherent uncertainties of looking out
further than five years.
Taking into account the Company’s current position and
the potential impact of its principal risks and uncertainties,
the Directors have a reasonable expectation that the
Company will be able to continue in operation and meet
its liabilities as they fall due for a period of five years from
the date of this Report.
In forming this expectation, the Directors looked to
the following:
· the Company’s assets consist, substantially, of a
portfolio of readily realisable quoted securities, where
the Directors monitor the liquidity of each holding as well
as reviewing the outcome of testing undertaken by the
Manager in which the portfolio is subject to adverse
historic market scenarios;
· the principal risks and uncertainties detailed on pages
15 to 17 and the steps taken to mitigate these. The
Directors consider the most significant risks, for
assessing the longer term viability of the Company, are
any period of extended poor performance, the level of
the discount and the geopolitical risks inherent in
investing in a single emerging market country;
· the implications of the conditional performance related
tender, based on the Company’s Adjusted NAV
performance relative to the benchmark for the five
years ended 31 March 2027, noting that the
performance in the three years to 31 March 2025 was
ahead of the benchmark.
· a significant proportion of the expenses are proportional
to the Company’s NAV or market capitalisation and will
reduce if these fall;
· the Directors regularly review the Company’s level of
gearing, including financial modelling undertaken by the
Manager to establish what level of reduction in the
Company’s NAV would require to occur in order to
cause a breach in the covenants attached to the
Company’s £30m bank loan facility;
· the Company’s third-party suppliers continuing to
deliver services to the Company in accordance with the
underlying agreements and not experiencing significant
operational difficulties in respect of the services
provided to the Company, although, if required,
alternative suppliers could be engaged to provide these
services at limited notice; and
· in advance of expiry in June 2028 of the Company’s
three-year £30m loan with BNP Paribas London Branch,
the Company will enter into negotiations with its
bankers. If acceptable terms are available from the
existing bankers, or any alternative, the Company would
expect to continue to access borrowings. However,
should these terms not be forthcoming, any outstanding
borrowing would be repaid through the proceeds of
equity sales.
Duration
The Company does not have a fixed life but, further to a
change in the Articles of Association approved by
shareholders at the AGM on 28 September 2022, an
ordinary resolution to continue the Company is put to
shareholders every five years, which will next occur at the
AGM in 2027.
Future Developments
The Board expects the Company to continue to pursue its
investment objective and accepts that this may involve
divergence from the Benchmark. The companies which
make up the investment portfolio are considered by the
Investment Manager to demonstrate resilience and to
offer opportunities for investors to benefit from the
development of the broader Indian economy. Further
information on the outlook and future developments of
the Company may be found in the Chairman’s Statement
on page 8 and in the Investment Manager’s Report on
pages 10 and 11.
Michael Hughes
Chairman
24 June 2025
20 abrdn New India Investment Trust plc
The Purpose of the Company and Role
of the Board
The Board is required to report on how it has discharged
its duties and responsibilities under section 172 of the
Companies Act 2006. Under this legislation, the Directors
have a duty to promote the success of the Company for
the benefit of its members as a whole, taking into account
the likely long-term consequences of decisions, the need
to foster relationships with the Company’s stakeholders
and the impact of the Company’s operations on
the environment.
The purpose of the Company is to act as a vehicle to
provide, over time, attractive financial returns to its
shareholders. Investment trusts, such as the Company, are
long-term investment vehicles and are typically externally
managed, have no employees, and are overseen by an
independent non-executive board of directors.
During the year, the Board comprised between four and
five independent non-executive Directors with a broad
range of skills and experience across all major functions
that affect the Company. The Board retains responsibility
for taking all decisions relating to the Company’s
investment objective and policy, gearing, corporate
governance and strategy, and for monitoring the
performance of the Company’s service providers.
The Board’s philosophy is that the Company should
operate in a transparent culture where all parties are
provided with respect as well as the opportunity to offer
practical challenge and participate in positive debate
which is focused on the aim of achieving the expectations
of shareholders and other stakeholders alike. The Board
expects the Manager to act as a responsible steward of
the Company’s investments (see pages 88 to 89 for
further information). Further information on the Manager’s
responsible investment policy may be found at:
https://www.aberdeenplc.com/en-gb/corporate-
sustainability
How the Board Engages with Stakeholders
The Company’s main stakeholders are its Shareholders,
the Manager, Investee Companies, Service Providers, Debt
Providers and the Environment and Community. The
Board considers its stakeholders at Board meetings
and receives feedback on the Manager’s interactions
with them.
Stakeholder How the Board Engages
Shareholders The Company’s shareholders are key stakeholders and the Board places great importance on
communication with them. The Board welcomes all shareholders’ views and aims to act fairly between all
shareholders. The Chairman, Manager and Company’s broker regularly meet with current and prospective
shareholders to discuss performance and shareholder feedback is discussed by the Directors at Board
meetings. In addition, the Chairman meets with major shareholders in the absence of representatives of
the Manager, as necessary.
Regular updates are provided to shareholders through the Annual Report, Half Yearly Report, Manager’s
monthly factsheets, Company announcements, including daily net asset value announcements, and the
Company’s website. In normal years, the Company’s Annual General Meeting provides a forum, both
formal and informal, for shareholders to meet and discuss issues with the Directors and Manager.
Manager The Investment Manager’s Report on pages 9 to 11 details the key investment decisions taken during the
year. The Investment Manager has continued to manage the Company’s assets in accordance with the
mandate provided by shareholders, with the oversight of the Board.
The Board regularly reviews the Company’s performance against its investment objective and the Board
undertakes an annual strategy review to ensure that the Company is positioned well for the future delivery
of its objective for its stakeholders. The Board receives presentations from the Investment Manager at
every Board meeting to help it to exercise effective oversight of the Investment Manager and the
Company’s strategy. The Board, through the Management Engagement Committee, formally reviews the
performance of the Manager at least annually and further details are provided on page 36.
Promotin
g
the Success of the Company
abrdn New India Investment Trust plc 21
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Stakeholder How the Board Engages
Investee Companies Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board
to the Manager which has sub-delegated that authority to the Investment Manager.
The Board has also given discretionary powers to the Investment Manager to exercise voting rights on
resolutions proposed by the investee companies within the Company’s portfolio. The Investment Manager
reports to the Board on a quarterly basis on stewardship (including voting) issues.
Through engagement and exercising voting rights, the Investment Manager actively works with portfolio
companies to improve corporate standards, transparency and accountability, and report thereon to
the Board.
Service Providers The Board seeks to maintain constructive relationships with the Company’s suppliers either directly or
through the Manager with regular communications and meetings.
The Audit Committee conducts an annual review of the performance, terms and conditions of the
Company’s key service providers to ensure they are performing in line with Board expectations and
providing value for money.
Debt Providers On behalf of the Board, the Manager maintains a constructive working relationship with the Company’s
lenders, ensuring compliance with the relevant loan covenants and arranging for regular updates for
lenders on the Company’s business activities, where requested.
Environment and
Community
The Board and Manager are committed to investing in a responsible manner and the Investment Manager
integrates sustainable considerations into its research and analysis as part of the investment decision-
making process.
Specific Examples of Stakeholder
Consideration During the Year
While the importance of giving due consideration to the
Company’s stakeholders is not new, and is considered as
part of every Board decision, the Directors were
particularly mindful of stakeholder considerations during
the following decisions undertaken during the year ended
31 March 2025.
Reduction in management fee
With effect from 1 April 2025, under the management
agreement (“MA”), annual investment management fees
are calculated at 0.8% in respect of the first £300 million of
the Company’s market capitalisation and at 0.6% in
respect of the Company’s market capitalisation in excess
of £300 million. Previously, fees were higher due to their
calculation on the basis of net assets.
Share buybacks
During the year the Company bought back 4.3 million
shares (2024: 3.7 million), providing a small accretion to
the NAV per share and a degree of liquidity to the market.
The Board is pleased to note that the discount reduced
from 20.4% to 15.0% over the year as a result of both
improved investment performance and the higher level of
buy-backs compared to the previous year. By 19 June
2025, the discount had narrowed further to 8.4%.
Online shareholder presentation
The Company held an online shareholder presentation
on 12 September 2024 to encourage and promote
interaction and engagement with the Company’s
shareholders. During the presentation, shareholders
received updates from the Chairman and Investment
Manager and were then able to participate in an
interactive question and answer session.
As explained in the Chairman’s Statement on page 8, the
Board is holding an Online Shareholder Presentation at
11.00am on 16 September 2025. The event is being held
ahead of the AGM in order to allow shareholders to submit
their proxy votes at least two business days prior to the
AGM after receiving an update on portfolio performance
and the outlook for Indian equities.
22 abrdn New India Investment Trust plc
Ten Year Financial Record
Year to 31 March 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total income (£’000) 374 3,104 3,318 3,602 5,185 4,517 5,059 6,123 4,903 4,808
Per share (p)
Net revenue (loss)/return (1.06) (0.28) (0.71) (0.35) 2.08 0.19 (0.28) (0.59) (3.77) (4.24)
Dividends
A
N/A N/A N/A N/A 1.00 N/A N/A N/A N/A N/A
Total (loss)/return (23.42) 125.81 2.12 41.90 (120.34) 216.25 69.64 (60.00) 168.85 62.69
Net asset value per share (p)
Basic 362.07 487.88 490.00 531.90 411.41 627.05 697.30 641.32 819.56 889.34
Shareholders’ funds (£’000) 213,874 288,190 289,444 314,196 241,583 366,106 403,995 357,919 427,054 425,599
A
2020 dividend represents 0.22p per share paid from revenue reserves and 0.78p per share paid from capital reserves.
Share Price Discount to NAV
Five years ended 31 March 2025
-25 %
-20 %
-15 %
-10 %
-5%
0%
31/ 03 /2 02 0 31/ 03 /2 02 1 31/ 03/2 02 2 31/ 03 /2 02 3 31/ 03 /2 02 4 31/ 03 /2 02 5
Total Returns of NAV and Share Price versus Benchmark total return
Five years ended 31 March 2025 (rebased to 100 at 31 March 2020)
100
150
200
250
300
31/03/2020 31/ 03/202 1 31/03/2022 31/03/2023 31/03/2024 31/03/2025
NAV Share Price Benchmark
Performance
abrdn New India Investment Trust plc 23
Portfolio
24 abrdn New India Investment Trust plc
As at 31 March 2025
9.5%
HDFC Bank
9.5%
ICICI Bank
HDFC Bank is India’s leading private
sector bank that now has a complete
suite of retail banking products after the
merger with HDFC, India’s leading
provider of mortgage finance. The bank
has solid underwriting standards and a
progressive digital stance, further
strengthening its competitive edge.
ICICI Bank has been delivering superior
growth and returns improvement
without compromising on asset quality. It
has leveraged on its scale as well as
retail and digital franchise to grow in
mortgages and also growing off a low
base in business banking and SMEs.
6.4%
Bharti Airtel
5.9%
Tata Consultancy Services
Bharti Airtel remains the leading
telecom service provider with a
pan-India reach and sophisticated
customer base with higher average
mobile spending.
A top-class Indian IT services provider
with the most consistent execution and
lowest attrition rates. It is a long-term
compounder with a decent outlook for
revenue growth and order wins over the
medium term.
4.6%
Infosys
4.4%
Power Grid Corporation of India
One of India’s best software developers,
it continues to impress with its strong
management, solid balance sheet and
sustainable business model.
Power Grid Corporation of India forms
the backbone of India’s electricity
infrastructure. It is poised to play a key
role in the growth of renewable energy
delivery to the grid over the next few
decades as the government plans
ambitious renewable targets for the
electricity sector.
4.3%
Aegis Logistics
3.2%
Mahindra & Mahindra
A strong and conservative player in
India’s gas and liquids logistics sector,
Aegis Logistics has capacity to expand.
In addition, the government’s push
for the adoption of cleaner energy
has boosted its liquefied natural
gas business.
With two main operating divisions, autos
and farm equipment, Mahindra &
Mahindra is expected to enjoy the
benefits of a strong SUV model cycle,
new line-up of electric vehicles and
capital allocation improvement from
the group level.
3.2%
SBI Life Insurance
3.1%
J.B. Chemicals & Pharmaceuticals
Among the leading domestic life
insurers, SBI Life’s competitive edge
comes from a wide reach of SBI
branches, highly productive agents, a
low cost ratio and a reputable brand.
One of the top pharmaceutical
companies in India by sales, with a
strong business manufacturing for other
companies. The company has an
attractive financial profile, an
experienced and capable
management team, and is pursuing
multiple growth opportunities on
which it is executing well.
Ten Lar
g
est Investments
abrdn New India Investment Trust plc 25
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 31 March 2025
Valuation Total assets
AB
2025 2025
Company Industry £’000 %
HDFC Bank Financials 42,257 9.5
ICICI Bank Financials 42,222 9.5
Bharti Airtel Communication Services 28,342 6.4
Tata Consultancy Services Information Technology 26,402 5.9
Infosys Information Technology 20,266 4.6
Power Grid Corporation of India Utilities 19,413 4.4
Aegis Logistics Energy 19,313 4.3
Mahindra & Mahindra Consumer Discretionary 14,384 3.2
SBI Life Insurance Financials 14,255 3.2
J.B. Chemicals & Pharmaceuticals Health Care 13,982 3.1
Ten largest investments 240,836 54.1
Indian Hotels Consumer Discretionary 13,554 3.0
Vijaya Diagnostic Centre Health Care 13,491 3.0
Ultra Tech Cement Materials 10,843 2.4
Godrej Properties Real Estate 10,802 2.4
KFIN Technologies Financials 10,146 2.3
Hindustan Unilever Consumer Staples 10,033 2.3
Phoenix Mills Real Estate 9,657 2.2
Hindalco Industries Materials 9,590 2.2
Info Edge Communication Services 9,468 2.1
Global Health India Health Care 8,971 2.0
Top twenty investments 347,391 78.0
Siemens Industrials 8,407 1.9
Havells India Industrials 8,394 1.9
Pidilite Industries Materials 7,993 1.8
Cholamandalam Investment and Finance Financials 7,752 1.7
UNO Minda Consumer Discretionary 6,639 1.5
KEI Industries Industrials 6,560 1.5
Coforge Information Technology 6,322 1.4
Axis Bank Financials 6,265 1.4
Bharti Hexacom Communication Services 6,165 1.4
Titan Consumer Discretionary 6,121 1.4
Top thirty investments 418,009 93.9
Portfolio
26 abrdn New India Investment Trust plc
As at 31 March 2025
Valuation Total assets
AB
2025 2025
Company Industry £’000 %
Tata Consumer Products Consumer Staples 5,559 1.2
ABB India Industrials 4,825 1.1
Poly Medicure Health Care 4,552 1.0
PB Fintech Financials 4,494 1.0
Aptus Value Housing Finance Financials 3,908 0.9
Brigade Enterprises Real Estate 3,807 0.9
Concord Biotech Health Care 3,804 0.9
Coromandel International Materials 3,586 0.8
Syngene International Health Care 3,426 0.8
APAR Industries Industrials 3,145 0.7
Top forty investments 459,115 103.2
Supreme Industries Materials 3,143 0.7
Bajaj Auto Consumer Discretionary 1,843 0.4
Total investments 464,101 104.3
Net liabilities (before deducting prior charges)
A
(19,014) (4.3)
Total assets
AB
445,087 100.0
A
Excluding loan balances.
B
Including net liabilities and deferred tax liability on Indian capital gains.
Unless otherwise stated, investments are in common stock.
Portfolio
Continued
abrdn New India Investment Trust plc 27
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Sector Breakdown
As at 31 March 2025
0% 5% 10% 15% 20% 25% 30% 35%
Financials
Information Technology
Health Care
Communication Services
Consumer Discretionary
Materials
Industrials
Real Estate
Utilities
Energy
Consumer Staples
2025
2024
Sector Allocation
28.3%
11.4%
10.4%
9.5%
9.2%
7.6%
6.7%
5.2%
4.2%
4.2%
3.3%
Financials
Information Technology
Health Care
Communication Services
Consumer Discretionary
Materials
Industrials
Real Estate
Utilities
Energy
Consumer Staples
Sector allocation
Sector Analysis and Sector Allocation
28 abrdn New India Investment Trust plc
Indian Rupee/Sterling Currency Movement
Year ended 31 March 2025
104
106
108
110
112
114
31/ 03/24 31/ 05/24 31/07/24 30/ 09/24 30/ 11/24 31/01/25 31/ 03/25
Currency Analysis
abrdn New India Investment Trust plc 29
Governance
30 abrdn New India Investment Trust plc
Michael Hughes
Independent Non-Executive Chairman and
Chairman of the Nomination Committee
Experience
Currently, an investment consultant to a family office, an
asset management company, and a national charity,
Michael was formerly a Director of Baring Asset
Management Limited from 1998, and Chief Investment
Officer from 2000, until his retirement in 2007. Prior to this,
Michael was a Managing Director of Barclays Capital
(previously BZW) and Chairman of the Board of pension
trustees. Before 'Big Bang' Michael was a Partner at
stockbrokers de Zoete and Bevan.
Length of service
Appointed a Director on 7 September 2016 and Chairman
on 28 September 2022.
Contribution
The Nomination Committee has reviewed the contribution
of Michael Hughes, in light of his proposed re-election as a
Director at the forthcoming AGM, and has concluded that
he has continued to chair the Company expertly, fostering
a collaborative spirit between the Board and Manager
while ensuring that meetings remain focussed on the key
areas of stakeholder relevance.
All other public company directorships:
None
David Simpson
Senior Independent Non-Executive Director
Experience
Initially qualified as a solicitor before following a career in
corporate finance, which included seven years with
Barclays de Zoete Wedd and 15 years with KPMG, latterly
as global head of mergers and acquisitions. David has
worked with numerous major corporates, listed
companies, private equity, charitable and public bodies.
David’s interest in India derives from his previous career
and from his former role as a non-executive director of
ITC Limited, a major listed Indian company.
Length of service
Appointed a Director on 1 November 2021 and Senior
Independent Director on 28 September 2022.
Contribution
The Nomination Committee has reviewed the contribution
of David Simpson, in light of his proposed re-election as a
Director at the forthcoming AGM, and has concluded that
he continues to provide to the Board significant
investment insight and knowledge of the investment trust
sector, including his discharge of the additional
responsibilities as Senior Independent Director.
All other public company directorships:
Ecofin Global Utilities and Infrastructure Trust plc
(Chairman; retiring as a director in March 2026) and M&G
Credit Income Investment Trust plc (Chairman).
Board of Directors
abrdn New India Investment Trust plc 31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Andrew Robson
Independent Non-Executive Director and
Chairman of the Audit Committee
Experience
A qualified Chartered Accountant, with a background in
investment banking and as a finance director, Andrew
was a director of Robert Fleming & Co Limited and SG
Hambros and finance director at eFinancialGroup Limited
and the National Gallery. Andrew has been a non-
executive director of Baillie Gifford China Growth Trust
PLC, JP Morgan Smaller Companies Investment Trust plc,
Shires Income plc, Mobeus Income & Growth 4 PLC and
British Empire Securities & General Trust plc.
Length of service
Appointed a Director on 1 August 2022 and Chairman of
the Audit Committee on 28 September 2022.
Contribution
The Nomination Committee has reviewed the contribution
of Andrew Robson and has concluded that he chairs the
Audit Committee expertly as well as providing to the
Board significant investment insight and knowledge of the
investment trust sector.
All other public company directorships:
BlackRock Energy and Resources Income Trust PLC and
JPMorgan European Growth & Income plc.
Rebecca Donaldson
Independent Non-Executive Director and Chairman of the
Management Engagement Committee
Experience
Over the last thirty years, Rebecca has led the
development of global marketing, communications and
investor relations solutions for a broad range of
investment companies, most recently as Head of
Marketing Services at Insight Investments and previously
with BMO Global Asset Management, Fidelity Worldwide
Investments, Dexion Capital plc (now Fidante Partners)
and UBS Global Asset Management AG.
Length of service
Appointed a Director on 1 September 2020 and Chairman
of the Management Engagement Committee on 28
September 2022.
Contribution
The Nomination Committee has reviewed the contribution
of Rebecca Donaldson in light of her proposed re-election
as a Director at the forthcoming AGM and has concluded
that her strong digital marketing expertise continues to
underpin the Company’s commitment to improve its
promotion to both existing and potential shareholders.
All other public company directorships:
None
32 abrdn New India Investment Trust plc
Irina Miklavchich
Independent Non-Executive Director
Experience
Appointed a Director on 20 November 2024, Irina was
formerly an Executive Director in Equities Trading at UBS
Investment Bank and, prior to that, she was the Head of
Emerging Markets Equities desk and Fund Manager of the
Global Emerging Markets Fund at Columbia
Threadneedle (EMEA) for over six years. Before that, Irina
spent eight years at Goldman Sachs, initially as an equity
research analyst with the Emerging Markets and Global
Financials teams at Goldman Sachs Asset Management
and latterly as a portfolio manager and research analyst
with Goldman Sachs Principal Strategies. Irina has strong
expertise in investing in Emerging Markets incorporating
fundamental company analysis, portfolio construction
and risk diversification across sectors and geographies,
including in India.
Length of service
Appointed a Director on 20 November 2024.
Contribution
The Nomination Committee has reviewed the contribution
of Irina Miklavchich in light of her proposed election as a
Director at the forthcoming AGM and has concluded that
her relevant experience of investing in Emerging Markets,
including India, is of particular benefit to the Company.
All other public company directorships:
None
Board of Directors
Continued
abrdn New India Investment Trust plc 33
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors present their Report and the audited
Financial Statements of the Company for the year ended
31 March 2025, taking account of any events between the
year end and the date of approval of this Report.
Results
The Company’s results, including its performance for the
year against its Key Performance Indicators (“KPIs”), may
be found on pages 3 and 14.
Investment Trust Status and ISA Compliance
The Company is registered as a public limited company in
England & Wales under registration number 02902424
and has been accepted by HM Revenue & Customs as an
investment trust for accounting periods beginning on or
after 1 April 2012, subject to the Company continuing to
meet the eligibility conditions of s1158 of the Corporation
Tax Act 2010 (as amended) and S.I. 2011/2099. In the
opinion of the Directors, the Company’s affairs have been
conducted in a manner to satisfy these conditions to
enable it to continue to qualify as an investment trust for
the year ended 31 March 2025. The Company intends to
manage its affairs so that its shares will be qualifying
investments for the stocks and shares component of an
Individual Savings Account (“ISA”).
Capital Structure
During the year ended 31 March 2025 the Company
bought back into treasury 4,252,117 (2024 – 3,702,011)
Ordinary shares. This was equivalent to 8.2% of the
Company’s issued share capital (excluding treasury
shares) at 1 April 2024 (2023 – 6.6%). As at 31 March 2025,
the Company's issued share capital consisted of 47,855,793
Ordinary shares (2024 – 52,107,910 Ordinary shares) with
voting rights, each share holding one voting right in the
event of a poll, and an additional 11,214,347 (2024 -
6,962,230) Ordinary shares in treasury, with no voting rights
or entitlement to receive dividends. Between 1 April 2025
and 19 June 2025, an additional 1,419,000 Ordinary shares
were bought back resulting in the Company’s issued share
capital consisting of 46,436,793 Ordinary shares and an
additional 12,633,347 shares in treasury.
Ordinary shareholders are entitled to vote on all
resolutions which are proposed at general meetings of the
Company. The Ordinary shares carry a right to receive
dividends. On a winding up, after meeting the liabilities of
the Company, the surplus assets will be paid to Ordinary
shareholders in proportion to their shareholdings. There
are no restrictions on the transfer of Ordinary shares in the
Company other than certain restrictions which may from
time to time be imposed by law and regulation.
Manager and Company Secretaries
The Company has appointed the Manager (see Glossary
on page 100) as its alternative investment fund manager,
to provide investment management, risk management,
promotional activities and administration and company
secretarial services to the Company. The Company’s
portfolio is managed by the Investment Manager (see
Glossary on page 100) by way of a group delegation
agreement in place between the Manager and
Investment Manager. In addition, the Manager has sub-
delegated administrative and secretarial services to
abrdn Holdings Limited and promotional activities to
abrdn Investments Limited.
With effect from 1 April 2025, under the management
agreement (“MA”), annual investment management fees
are calculated at 0.8% in respect of the first £300 million of
the Company’s market capitalisation and at 0.6% in
respect of the Company’s market capitalisation in excess
of £300 million. The Company will also pay an annual
secretarial and fund administration fee of £45,000, plus
applicable VAT, which will increase each year in line
with inflation.
Until 31 March 2025, annual investment management fees
were calculated on the same rates as above, but as a
proportion of the Company’s net assets.
There is a rebate for any fees received in respect of any
investments by the Company in investment vehicles
managed by Aberdeen. The MA is terminable by either
party on not less than six months' notice. In the event of
termination on less than the agreed notice period,
compensation is payable to the Manager in lieu of the
unexpired notice period.
The fees, and other expenses, payable to the Manager
during the year ended 31 March 2025 are disclosed in
Notes 4 and 5 to the Financial Statements. The investment
management fees are chargeable 100% to revenue.
Corporate Governance
The Company is committed to high standards of
corporate governance and its Statement of Corporate
Governance is set out on page 41.
Directors’ Report
34 abrdn New India Investment Trust plc
Directors
At 31 March 2025, the Board consisted of a non-executive
Chairman and four non-executive Directors, all of whom
served throughout the year with the exception of Irina
Miklavchich who was appointed a Director on 20
November 2024.
The Senior Independent Director was David Simpson, the
Chairman of the Audit Committee was Andrew Robson
and the Chairman of the Management Engagement
Committee was Rebecca Donaldson.
Board Diversity
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow it to fulfil its
obligations. The Board also recognises the benefits and is
supportive of the principle of diversity in its recruitment of
new Board members. The Board will not display any bias
for age, gender, race, sexual orientation, religion, ethnic or
national origins, socio-economic background or disability
in considering the appointment of its Directors.
The Board will continue to ensure that all appointments
are made on the basis of merit against the specification
prepared for each appointment. In doing so, the Board will
take account of the three targets set out in the FCA’s UK
Listing Rules, which are set out in the tables below.
The Board has resolved that the Company’s year end
date is the most appropriate date for disclosure purposes.
The following information has been provided by each
Director through the completion of questionnaires. There
have been no changes since the year end as at the date
of approval of this Report.
Table for reporting on sex as at 31 March 2025
Number of Board
members
Percentage of the
Board
Number of senior
positions on the Board
(CEO, CFO, Chair and
SID
Number in
executive
management
Percentage of
executive
management
Men 3 60% 2
(note 3)
n/a
(note 3)
n/a
(note 3)
Women 2 40% (note 1) -
Not specified/prefer not to say - - -
Table for reporting on ethnic background as at 31 March 2025
Number of Board
members
Percentage of the
Board
Number of senior
positions on the Board
(CEO, CFO, Chair and
SID
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
5 100% 100%
(note 3)
n/a
(note 3)
n/a
(note 3)
Minority ethnic - 0% (note 2)
Not specified/prefer not to say - 0% -
1. Meets the target that at least 40% of Directors are women as set out in FCA UKLR 6.6.6R (9)(a)(i)
2. Does not meet the target that at least one Director is from a minority ethnic background as set out in FCA UKLR 6,6.6R (9)(a)(iii)
3. The Company is externally managed and does not employ any executive staff, specifically it has neither a CEO nor CFO. The
Board adopts the view that the roles of Chairman of the Board, Senior Independent Director and Chairman of each of the Board
Committees are senior board positions for these purposes. Rebecca Donaldson chairs the Management Engagement
Committee and therefore the Board considers that, accordingly, the Company effectively meets the target that at least one of
the senior board positions is held by a woman.
Directors’ Report
Continued
abrdn New India Investment Trust plc 35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board considers that five Directors is appropriate for
an investment trust, and retirement of each Director at the
AGM following the ninth anniversary of their appointment,
unless in relation to exceptional circumstances, to be an
appropriate tenure for Board members.
While the targets for diversity are inevitably more
challenging to achieve for a smaller board with infrequent
appointment opportunities, the Board is fully supportive of
the principles behind the targets and these will be
carefully considered in all future appointments. The
biographical details of the Directors are included on pages
30 to 32 and the most recent Board appointment was in
November 2024.
Chairman and Senior Independent Director
The Chairman is responsible for providing effective
leadership to the Board, by setting the tone of the
Company, demonstrating objective judgement and
promoting a culture of openness and debate. The
Chairman facilitates the effective contribution and
encourages active engagement by each Director. In
conjunction with the Company Secretary, the Chairman
ensures that Directors receive accurate, timely and clear
information to assist them with effective decision-making.
The Chairman acts upon the results of the Board
evaluation process by recognising strengths and
addressing any weaknesses and also ensures that the
Board engages with major shareholders and that all
Directors understand shareholder views.
The Senior Independent Director acts as a sounding board
for the Chairman and acts as an intermediary for other
directors, when necessary. Working closely with the
Nomination Committee, the Senior Independent Director
takes responsibility for an orderly succession process for
the Chairman and leads the annual appraisal of the
Chairman’s performance. The Senior Independent
Director is also available to shareholders to discuss any
concerns they may have.
Directors' Insurances and Indemnities
The Company maintains insurance in respect of Directors’
and Officers’ liabilities in relation to their acts on behalf of
the Company. Furthermore, each Director of the
Company is entitled to be indemnified out of the assets of
the Company to the extent permitted by law against all
costs, charges, losses, expenses and liabilities incurred by
them in the actual or purported execution and/or
discharge of their duties and/or the exercise or purported
exercise of their powers and/or otherwise in relation to or
in connection with their duties, powers or office. These
rights are included in the Articles of Association of the
Company and the Company has granted deeds of
indemnities to each Director on this basis.
Management of Conflicts of Interest and
Anti-Bribery Policy
The Board has a procedure in place to deal with a
situation where a Director has a conflict of interest. As part
of this process, the Directors prepare a list of other
positions held and all other conflict situations that may
need to be authorised either in relation to the Director
concerned or his/her connected persons. The Board
considers each Director’s situation and decides whether
to approve any conflict, taking into consideration what is in
the best interests of the Company and whether the
Director’s ability to act in accordance with his/her wider
duties is affected. Each Director is required to notify the
Company Secretaries of any potential, or actual, conflict
situations which will need authorising by the Board.
Authorisations given by the Board are reviewed at each
Board meeting.
No Director has a service contract with the Company
although Directors are issued with letters of appointment
upon taking up office. Other than the deeds of indemnity
referred to above, there were no contracts with the
Company during, or at the end of the year, in which any
Director was interested.
The Board takes a zero-tolerance approach to bribery
and has adopted appropriate procedures designed to
prevent bribery. The Manager also takes a zero-tolerance
approach and has its own detailed policy and procedures
in place to prevent bribery and corruption.
In relation to the corporate offence of failing to prevent tax
evasion, it is the Company’s policy to conduct all business in
an honest and ethical manner. The Company takes a zero-
tolerance approach to facilitation of tax evasion whether
under UK law or under the law of any foreign country and is
committed to acting professionally, fairly and with integrity
in all its business dealings and relationships.
Board Committees
The Directors have appointed a number of Committees as
set out below. Copies of each Committee’s terms of
reference, which define its responsibilities and duties, are
available on the Company’s website or from the
Company Secretaries, on request.
Audit Committee
The Audit Committee’s Report is on pages 42 to 45.
36 abrdn New India Investment Trust plc
Management Engagement Committee
The Board has established a Management Engagement
Committee comprising all of the Directors, which was
chaired throughout the year by Rebecca Donaldson.
The Committee is responsible for reviewing matters
concerning the management agreement which exists
between the Company and the Manager together with
the promotional activities programme operated by the
Manager to which the Company contributes. The terms
and conditions of the Manager’s appointment, including
an evaluation of performance and fees, are reviewed
annually and were last considered at the meeting of the
Committee in November 2024.
In monitoring the performance of the Manager, the
Committee considers the investment approach and
investment record of the Manager over shorter and
longer-term periods, taking into account the Company’s
performance against the Benchmark and peer group
funds. The Committee also reviews the management
processes, risk control mechanisms and promotional
activities of the Manager.
The Committee considers the continuing appointment of
the Manager, on the terms agreed, to be in the interests of
the shareholders because it believes that the Manager
has the investment management, promotional and
associated secretarial and administrative skills
required for the effective and successful operation
of the Company.
Nomination Committee
The Board has established a Nomination Committee,
comprising all of the Directors, which was chaired by
Michael Hughes during the year. The Committee is
responsible for undertaking an annual evaluation of the
Board as well as longer term succession planning and,
when appropriate, oversight of appointments to the Board
In May 2025, the Board facilitated a self-assessment
evaluation, the outcome of which was discussed by the
Chairman with the other Directors. David Simpson, as the
Senior Independent Director, provided feedback to the
Chairman regarding his evaluation by the other Directors.
In relation to the appointment of Irina Miklavchich as a
Director, the Company engaged Tyzack Partners, an
independent search agency with no other connection to
the Company.
The names, biographies and contribution of each of the
Directors are shown on pages 30 to 32 and indicate their
range of experience as well as length of service. Each
Director has the requisite high level and range of business
and financial experience which enables the Board to
provide clear and effective leadership and proper
stewardship of the Company.
Irina Miklavchich, being eligible, retires and offers herself
for election as a Director of the Company. Michael
Hughes, Rebecca Donaldson, David Simpson and Andrew
Robson, each being eligible, retire and offer themselves for
individual re-election as Directors of the Company.
The Board as a whole, with the relevant Director
abstaining, believes that each Director remains
independent of the Manager and free of any relationship
which could materially interfere with the exercise of his or
her independent judgement on issues of strategy,
performance, resources and standards of conduct and
confirms that, following formal performance evaluations,
the individuals’ performance continues to be effective and
demonstrates commitment to the role.
The Directors attended scheduled Board and Committee
meetings during the year ended 31 March 2025 as
follows (with their eligibility to attend the relevant
meeting in brackets):
Director
Board and
Committee
Meetings
Audit
Committee
Meetings
Management
Engagement
Committee
Meetings
Nomination
Committee
Meetings
Michael
Hughes
8 (8) 3 (3) 1 (1) 2 (2)
David
Simpson
8 (8) 3 (3) 1 (1) 2 (2)
Andrew
Robson
8 (8) 3 (3) 1 (1) 2 (2)
Rebecca
Donaldson
8 (8) 3 (3) 1 (1) 2 (2)
Irina
Miklavchich
A
5 (5) 2 (2) 1 (1) 2 (2)
A
Appointed as a Director on 20 November 2024
The Board has adopted a policy that all Directors,
including the Chairman, shall not serve beyond the ninth
AGM after their initial appointment as a Director of the
Company, unless in relation to exceptional circumstances.
Directors’ Report
Continued
abrdn New India Investment Trust plc 37
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The ninth anniversary of Michael Hughes’ appointment as
a Director is 7 September 2025. The other Directors have
determined that it is in the best interests of shareholders
that Michael Hughes continue as Chairman until 31 March
2026 in order to coincide with the appointment of David
Simpson as Chairman following his retirement as a
director of Ecofin Global Utilities and Infrastructure Trust
plc in March 2026. Led by Andrew Robson, in the absence
of Michael Hughes as retiring Chairman and David
Simpson as prospective Chairman, the other Directors
considered David Simpson’s present capacity, expected
future capacity, contribution to the Board and
independence (as assessed under the AIC Code on
Corporate Governance) and approved his appointment
as Chairman of the Board with effect from 1 April 2026.
Accordingly, the Board is recommending, at the next
AGM, the election of Irina Miklavchich as a Director
and the individual re-elections of Michael Hughes,
Rebecca Donaldson, David Simpson and Andrew
Robson as Directors.
As the Company has no employees and the Board is
comprised wholly of non-executive directors and,
given the size and nature of the Company, the Board
has not established a separate remuneration
committee and Directors’ fees are determined by
the Nomination Committee.
Accountability and Audit
The responsibilities of the Directors and the Auditor, in
connection with the financial statements, appear on
pages 49 and 55.
The Directors who held office at the date of approval of
this Directors’ Report confirm that, so far as they are each
aware, there is no relevant audit information of which the
Company’s Auditor is unaware, and each Director has
taken all the steps that he or she could reasonably be
expected to have taken as a Director in order to make
himself or herself aware of any relevant audit information
and to establish that the Company’s Auditor is aware
of that information. Additionally, there have been
no important events since the year end which
warrant disclosure.
The Directors review, as applicable, the level of non-audit
services provided by the Auditor, together with the
Auditor's procedures in connection with the provision of
such services. No non-audit services were provided by the
auditor during the year or to the date of this Report. The
Directors remain satisfied that the Auditor is objective
and independent.
Going Concern
In accordance with the Financial Reporting Council’s
guidance on Going Concern and Liquidity Risk, the
Directors have reviewed the Company’s ability to continue
as a going concern. The Company’s assets consist
substantially of a portfolio of quoted securities which in
most circumstances are realisable within a short
timescale. The Directors are mindful of the principal risks
and uncertainties disclosed on pages 15 to 17 and the
financial risks in Note 17 to the financial statements and
have reviewed income forecasts detailing revenue and
expenses for at least 12 months from the date of this
Report. Accordingly, the Directors believe that, the
Company has adequate financial resources to continue in
operational existence for the foreseeable future and for at
least 12 months from the date of this Report.
In August 2022, the Company entered into a three-year,
£30 million revolving credit facility with Royal Bank of
Scotland International Limited (London Branch) (the “RBSI
Facility”), part of NatWest Group plc, of which £19.5 million
was drawn down at 31 March 2025 (2024 - £26.0 million).
In advance of the expiry of the RBSI Facility in August 2025,
the Company commenced negotiations to refinance the
borrowings which resulted in the approval by the Board,
on 19 June 2025, of the Company entering into a three-
year, £30 million revolving credit facility with BNP Paribas
London Branch.
The Board has set limits for borrowing and regularly
reviews the level of any gearing and compliance with
banking covenants.
The results of stress testing prepared by the Manager,
which models a sharp decline in market levels and
income, demonstrated that the Company had the ability
to raise sufficient funds so as to both pay expenses and
remain within its debt covenants, and to continue to meet
its liabilities as they fall due for at least 12 months from the
date of this Report.
Responsible Investment
The Board is aware of its duty to act in the interests of the
Company. The Board acknowledges that there are risks
associated with investment in companies which fail to
conduct business in a socially responsible manner.
Responsibility for actively monitoring the sustainability
investing activities of portfolio companies has been
delegated by the Board to the Manager which has sub-
delegated that authority to the Investment Manager.
Further information may be found at:
https://www.aberdeenplc.com/en-gb/corporate-
sustainability
38 abrdn New India Investment Trust plc
Substantial Interests
The Company had been notified of the following share
interests above 3% in the Company as at 31 March 2025:
Shareholder
Number of
shares held % held
City of London Investment
Management 7,544,312 15.8
Lazard Asset Management 6,547,915 13.7
Clients of Interactive Investor
(execution only) 5,208,458 10.9
Clients of Hargreaves Lansdown
(execution only) 4,258,094 8.9
Clients of Aberdeen 3,803,731 7.9
Allspring Global Investments 2,117,625 4.4
The above interests at 31 March 2025 were unchanged at
the date of approval of this Report other than in relation to
City of London Investment, which advised the Company
on 15 May 2025 of a holding of 7,531,812 shares,
equivalent to 16.0% of the Company’s shares in issue
(excluding treasury shares).
Relations with Shareholders
The Directors place great importance on communication
with shareholders. The Annual Report is widely distributed
to other parties who have an interest in the Company’s
performance. Shareholders and investors may obtain up-
to-date information on the Company through its website,
abrdnnewindia.co.uk. The Company responds to
correspondence from shareholders on a wide range of
issues (for contact details, please see Additional
Shareholder Information).
The Board’s policy is to communicate directly with
shareholders and their representative bodies without the
involvement of the Manager in situations where direct
communication is required and representatives from the
Board offer to meet with major shareholders on an annual
basis in order to gauge their views.
In addition, members of the Board may accompany
the Manager when undertaking meetings with
institutional shareholders.
The Company Secretaries only act on behalf of the Board,
not the Manager, and there is no filtering of
communication. At each Board meeting the Board
receives full details of any communication from
shareholders to which the Chairman responds, as
appropriate, on behalf of the Board.
The Notice of AGM included within the Annual Report is
normally sent out at least 20 working days in advance of
the meeting. All shareholders have the opportunity to put
questions to the Board and Manager prior to the
Company’s AGM.
Annual General Meeting
The AGM will be held on 23 September 2025 and the
Notice of AGM and related notes may be found on pages
94 to 99. Resolutions relating to the following items will be
proposed at the AGM as special business:
Amendment to Articles of Association
Resolution 9, which is an ordinary resolution, will be put to
the AGM to increase the annual limit on aggregate fees
payable by the Company to the Directors under Article 101.
The Directors wish to make provision in the event that the
Board composition were to expand in number in the future,
and/or fees required to be increased, and are proposing
that an aggregate annual limit of £250,000 (or such other
amount as may from time to time be determined by
Ordinary Resolution of the Company) be approved by
shareholders, replacing the current limit of £200,000.
Further information regarding Resolution 9 may be found in
the Directors’ Remuneration Report, on page 47.
Share Repurchases (Resolution 10)
At the AGM held on 20 September 2024, shareholders
approved the renewal of the authority for the Company to
repurchase its Ordinary shares.
The principal aim of a share buyback facility is to reduce
the volatility in the discount. In addition, the purchase of
shares, when they are trading at a discount, should result
in an increase in the NAV per share for the remaining
shareholders. This authority, if conferred, will only be
exercised if to do so would result in an increase in the NAV
per share for the remaining shareholders, and if it is in the
best interests of shareholders generally. Any purchase of
shares will be made within guidelines established from
time to time by the Board. It is proposed to seek
shareholder authority to renew this facility for another
year at the AGM. Under the Listing Rules, the maximum
price that may be paid on the exercise of this authority
must not exceed the higher of: (i) 105% of the average of
the middle market quotations for the shares over the five
business days immediately preceding the date of
purchase; and (ii) the higher of the last independent trade
and the highest current independent bid on the trading
venue where the purchase is carried out. The minimum
price which may be paid is 25p per share. Shares which
are purchased under this authority will either be cancelled
or held as treasury shares.
Directors’ Report
Continued
abrdn New India Investment Trust plc 39
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Renewal of the authority to buy back shares is sought at
the AGM as the Board considers that this mechanism has
assisted in lowering the volatility of the discount reflected
in the Company’s share price and is also accretive, in NAV
terms, for continuing shareholders. Special resolution 10 in
the Notice of AGM will, if passed, renew the authority to
purchase in the market a maximum of 14.99% of shares in
issue as at 24 June 2025, being the nearest practicable
date to the approval of this Report (equivalent to
approximately 7.0 million Ordinary shares). Such authority
will expire on the date of the AGM in 2026 or on 30
September 2026, whichever is earlier. This means in effect
that the authority will have to be renewed at the next
AGM, or earlier, if the authority has been exhausted.
Issue of Shares (Resolutions 11 and 12)
Ordinary resolution 11 in the Notice of AGM will, if passed,
renew the authority to allot unissued share capital up to an
aggregate of 10%, equivalent to approximately 4.6 million
Ordinary shares, of the Company’s existing issued share
capital, excluding treasury shares, as at 24 June 2025.
Such authority will expire on the date of the AGM in 2026
or on 30 September 2026, whichever is earlier, which
means that the authority will have to be renewed at the
next AGM or, earlier, if the authority has been exhausted.
When shares are to be allotted for cash, the Companies
Act 2006 (the “Act”) provides that existing shareholders
have pre-emption rights and that the new shares must be
offered first to such shareholders in proportion to their
existing holding of shares. However, shareholders can, by
Special resolution, authorise the Directors to allot shares
otherwise than by a pro rata issue to existing shareholders.
Special resolution 12 will, if passed, give the Directors
power to allot for cash equity securities up to 10%
(equivalent to approximately 4.6 million Ordinary shares),
of the Company’s existing issued share capital as at 24
June 2025, as if Section 561(1) of the Act did not apply.
This is the same nominal amount of share capital which
the Directors are seeking the authority to allot pursuant to
resolution 11. This authority will expire on the date of the
AGM in 2026 or on 30 September 2026, whichever is
earlier, which means that the authority will have to be
renewed at the next AGM or, earlier, if the authority has
been exhausted. This authority will not be used in
connection with a rights issue by the Company.
The Company is permitted to buy back and hold shares in
treasury and then sell them at a later date for cash, rather
than cancelling them. The Treasury Share Regulations
require such sale to be on a pre-emptive, pro rata, basis to
existing shareholders unless shareholders agree by
Special resolution to disapply such pre-emption rights.
Accordingly, in addition to giving the Directors power to
allot unissued Ordinary share capital on a non pre-
emptive basis, resolution 12, if passed, will give the
Directors authority to sell Ordinary shares from treasury
on a non pre-emptive basis. No dividends may be paid on
any shares held in treasury and no voting rights will attach
to such shares. The benefit of the ability to hold treasury
shares is that such shares may be resold.
This should give the Company greater flexibility in
managing its share capital and improve liquidity in its
shares. The Board would only expect to issue new
Ordinary shares or sell Ordinary shares from treasury at a
price per Ordinary share which represented a premium to
the NAV per share. It is also the intention of the Board that
sales from treasury would only take place when the Board
believes that to do so would assist in the provision of
liquidity to the market.
The Directors intend to use the authorities given by
resolutions 11 and 12 to allot shares, or sell shares from
treasury, and disapply pre-emption rights only in
circumstances where this will be clearly beneficial to
shareholders as a whole. The issue proceeds would be
available for investment in line with the Company’s
investment policy.
Recommendation
The Board considers all of the Resolutions to be put to
shareholders at the AGM to be in the best interests of the
Company and its members as a whole and are likely to
promote the success of the Company for the benefit of its
members as a whole. Accordingly, the Board unanimously
recommends that shareholders should vote in favour of
the resolutions to be proposed at the Annual General
Meeting, as they intend to do in respect of their own
shareholdings, amounting to 23,738 Ordinary shares.
40 abrdn New India Investment Trust plc
Additional Information
Where not provided elsewhere in the Directors' Report, the
following provides the additional information required to
be disclosed by The Large and Medium-sized Companies
and Groups (Accounts and Reports) Regulations 2008.
The Company is not aware of any significant agreements
to which it is a party, apart from the management
agreement, that take effect, alter or terminate upon a
change of control of the Company following a takeover.
Other than the management agreement with the
Manager, further details of which are set out on page 33,
the Company is not aware of any contractual or other
agreements which are essential to its business which
might reasonably be expected to have to been disclosed
in the Directors' Report.
The financial risk management objectives and policies
arising from its financial instruments and the exposure of
the Company to risk are disclosed in Note 17 to the
Financial Statements.
Michael Hughes,
Chairman
24 June 2025
Directors’ Report
Continued
abrdn New India Investment Trust plc 41
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
abrdn New India Investment Trust plc (the “Company”) is
committed to high standards of corporate governance.
The Board is accountable to the Company’s shareholders
for good governance and this statement describes how
the Company has applied the principles identified in the
UK Corporate Governance Code as published in July 2018
(the “UK Code”), which is available on the Financial
Reporting Council’s (the “FRC”) website: frc.org.uk and is
applicable for the Company’s Year.
The Board has also considered the principles and
provisions of the AIC Code of Corporate Governance as
published in February 2019 (the “AIC Code”). The AIC
Code addresses the principles and provisions set out in the
UK Code, as well as setting out additional provisions on
issues that are of specific relevance to the Company. The
AIC Code is available on the AIC’s website: theaic.co.uk.
The Board intends to report against the AIC Code on
Corporate Governance, published in August 2024 and
applicable for accounting periods beginning on or after
1 January 2025, in relation to its future year ending
31 March 2026.
The Board considers that reporting against the principles
and provisions of the AIC Code, which has been endorsed
by the FRC, provides more relevant information to
shareholders.
The Board confirms that, during the year ended 31 March
2025, the Company has complied with the provisions of
the AIC Code, and the relevant provisions of the UK Code,
except for those provisions relating to:
· the composition of the Audit Committee (AIC Code
provision 29): the other Directors consider that it is
appropriate for the Chairman of the Board to be a
member of, but not chair, the Audit Committee, due to
the Board’s small size, the lack of any perceived conflict
of interest, and because the other Directors believe that
Michael Hughes was independent on appointment and
continued to be independent; and
· the establishment of a remuneration committee (AIC
Code provision 37): for the reasons set out in the AIC
Code the Board considers that this provision is not
relevant to the position of the Company, being an
externally managed investment company. In particular,
all of the Company’s day-to-day management and
administrative functions are outsourced to third parties.
As a result, the Company has no executive directors,
employees or internal operations. The Company
has therefore not reported further in respect of
this provision.
Further information on how the Company has applied the
AIC Code, the UK Code, the Companies Act 2006 and
the FCA’s DTR 7.2.6 can be found in the Annual Report
as follows:
· the composition and operation of the Board and its
Committees are detailed on pages 34 to 37 and on
page 42 in respect of the Audit Committee;
· the Board’s policy on diversity and information on Board
diversity is on page 34;
· the Company’s approach to internal controls and risk
management is detailed on page 43;
· the contractual arrangements with the Manager are set
out on page 33 while details of the annual assessment of
the Manager may be found on page 36;
· the Company’s capital structure and voting rights are
summarised on page 33;
· the substantial interests disclosed in the Company’s
shares are listed on page 38;
· the rules concerning the appointment and replacement
of Directors are contained in the Company’s Articles of
Association and are summarised on page 46. There are
no agreements between the Company and its Directors
concerning compensation for loss of office; and
· the powers to issue or buy back the Company’s ordinary
shares, which are sought annually, and any
amendments to the Company’s Articles of Association
require a special resolution (75% majority) to be passed
by shareholders and information on these resolutions
may be found on pages 38 and 39.
Michael Hughes,
Chairman
24 June 2025
Statement of Corporate Governance
42 abrdn New India Investment Trust plc
The Audit Committee presents its Report for the year
ended 31 March 2025.
Committee Composition
The Directors have appointed an Audit Committee (the
“Committee”) consisting of the whole Board, which was
chaired by Andrew Robson throughout the year.
The other members of the Committee consider that it is
appropriate for the Chairman of the Board to be a
member of, but not chair, the Committee. The Chairman
of the Board possesses significant financial experience
which the other Committee members consider to be
valuable. The Board is small and, if the Chairman of the
Board were to be excluded, the Committee would
comprise only four Directors which may lead to quorum
issues if decisions are required at short notice. In addition,
the other Committee members are satisfied that there is
no conflict of interest arising and value the input of the
Chairman of the Board to the Committee’s deliberations.
The Directors have satisfied themselves both that at least
one of the Committee’s members has recent and relevant
financial experience (Andrew Robson is a member of the
Institute of Chartered Accountants in England and Wales),
and that the Committee as a whole possesses
competence relevant to the investment trust sector.
Role of the Audit Committee
The principal function of the Committee is to assist the
Board in relation to the reporting of financial information,
the review of financial controls and the management
of risk.
The Committee meets not less than twice each year, in
line with the cycle of annual and half-yearly reports, which
is considered by the Directors to be a frequency
appropriate to the size and complexity of the Company.
The Committee has defined terms of reference which are
reviewed and re-assessed for their adequacy on an
annual basis. Copies of the terms of reference are
available from the Company's website or from the
Company Secretaries, on request.
In summary, the Committee’s main functions are:
· to review and monitor the internal control systems and
risk management systems (including review of non-
financial risks) on which the Company is reliant;
· to consider annually whether there is a need for the
Company to have its own internal audit function;
· to review and monitor the integrity of the half-yearly
report and annual financial statements of the Company;
· to review, and report to the Board on, the significant
financial reporting issues and judgements made in
connection with the preparation of the Company’s
financial statements, half-yearly reports,
announcements and related formal statements;
· to review the content of the Annual Report and advise
the Board on whether, taken as a whole, it is fair,
balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy;
· to meet with the Auditor to review their proposed audit
programme of work and the findings of the Auditor. The
Committee shall also use this as an opportunity to
assess the effectiveness of the audit process;
· to develop and implement policy on the engagement of
the Auditor to supply non-audit services. During the year
under review, no non-audit services were provided to
the Company by KPMG LLP. All non-audit services must
be approved in advance by the Committee and will be
reviewed in light of statutory requirements to maintain
the Auditor’s independence;
· to review a statement from the Manager detailing the
arrangements in place whereby its staff may, in
confidence, escalate concerns about possible
improprieties in matters of financial reporting or other
matters (whistleblowing);
· to review and approve the remuneration and terms of
engagement of the Auditor;
· to monitor and review annually the Auditor’s
independence, objectivity, effectiveness, resources and
qualification;
· to monitor the requirement for rotation of the Auditor
and to oversee any tender for the external audit of the
Company;
· to keep under review the appointment of the Auditor
and to recommend to the Board and shareholders the
reappointment of the existing auditor or, if appropriate,
the appointment of a new Auditor; and
· to evaluate its own performance each year, in relation
to discharging its main functions, by means of a section
devoted to the Committee within the Directors’ annual
self-evaluation.
Audit Committee’s Report
abrdn New India Investment Trust plc 43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Activities during the Year
The Committee met on three occasions during the year to
consider the Annual Report, the Half-Yearly Report and
the Company’s system of risk management and internal
control. Reports from the Manager’s internal audit,
business risk and compliance departments were
considered by the Committee at these meetings. The
Committee also conducted an audit tender during the
year, as set out below.
Review of Internal Controls Systems and Risk
Management
The Board is ultimately responsible for the Company’s
system of internal control and risk management and for
reviewing its effectiveness. The Committee confirms that
there is a robust process for identifying, evaluating and
managing the Company's significant business and
operational risks, that it was in place for the year ended 31
March 2025 and up to the date of approval of this Annual
Report, that it is regularly reviewed by the Board and
accords with the FRC guidance on internal controls.
The principal risks and uncertainties facing the Company
are identified on pages 15 to 17 of this Report.
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and, to manage its affairs properly, extends to operational
and compliance controls and risk management. This
includes controls over financial reporting risks related to
the preparation of the Annual Report, which are
delegated to the Manager as part of the Management
Agreement (“MA”) and the Committee receives regular
reports from the Manager as to how these controls
are operating.
Internal control and risk management systems are
monitored and supported by the Manager’s business risk
and compliance functions which undertake periodic
examination of business processes, including compliance
with the terms of the MA, and ensures that any
recommendations to improve controls are implemented.
Risk is considered in the context of the FRC and the UK
Code guidance and includes financial, regulatory, market,
operational and reputational risk. Risks are identified and
documented through a risk heat-map, which is a pictorial
representation of the risks faced by the Company, after
taking account of any mitigating controls to minimise
the risk, ranked in order of likelihood and impact on
the Company.
The key components designed to provide effective risk
management and internal control are outlined below:
· the Manager prepares forecasts and management
accounts which allow the Board to assess the
Company’s activities and review its performance; the
emphasis is on obtaining the relevant degree of
assurance and not merely reporting by exception;
· the Board and Manager have agreed clearly-defined
investment criteria, specified levels of authority and
exposure limits. Reports on these issues, including
performance statistics and investment valuations, are
regularly submitted to the Board, and there are
meetings with the Manger and Investment Manager
as appropriate;
· as a matter of course, the Manager’s compliance
department continually reviews the Manager’s
operations; and
· written agreements are in place which specifically
define the roles and responsibilities of the Manager and
other third-party service providers.
The Committee has considered the need for an internal
audit function but, due to the delegation of certain
business functions to the Manager, has decided to place
reliance on the Manager’s systems and internal audit
procedures, including the ISAE3402 Report, a global
assurance standard for reporting on internal controls for
service organisations, commissioned by the Manager’s
immediate parent company, Aberdeen Group plc. At its
June 2025 meeting, the Committee carried out an annual
assessment of risk management and internal controls for
the year ended 31 March 2025 by considering
documentation from the Manager, including the internal
audit and compliance functions, and taking account of
events since 31 March 2025.
The system of internal control and risk management is
designed to meet the Company’s particular needs and
the risks to which it is exposed. Accordingly, this system is
designed to manage, rather than eliminate, the risk of
failure to achieve business objectives and, by its nature,
can only provide reasonable, and not absolute, assurance
against misstatement and loss.
44 abrdn New India Investment Trust plc
External Agencies
The Board has contractually delegated to external
agencies, including the Manager and other service
providers, certain services: the management of the
investment portfolio, the depositary services (which
include the custody and safeguarding of the assets), the
share registration services and the day-to-day
accounting and company secretarial requirements. Each
of these contracts was entered into after full and proper
consideration by the Board of the quality and cost of
services offered in so far as they relate to the affairs of the
Company. The Committee receives and considers reports
from each service provider, including the Manager, on a
regular basis. In addition, ad hoc reports and information
are supplied to the Board as requested.
Significant Financial Reporting Issues
addressed
During its review of the Company’s financial statements
for the year ended 31 March 2025, the Committee
identified a significant financial reporting risk facing the
Company which is unchanged from the prior year,
namely valuation and existence of investments, as well as
several additional risks.
Valuation and Existence of Investments
The valuation of investments is undertaken in accordance
with the accounting policies, disclosed in Notes 2(a) and
2(g) to the financial statements. With reference to the IFRS
13 fair value hierarchy, all of the Company’s investments
at 31 March 2025 were categorised as Level 1 as they are
considered liquid and quoted in active markets. The
portfolio is reviewed and verified by the Manager on a
regular basis and management accounts including a full
portfolio listing are prepared each month and circulated
to the Board. BNP Paribas Trust Corporation UK Limited
(the “Depositary”) has been appointed as depositary to
safeguard the assets of the Company. The Depositary
checks the consistency and accuracy of its records on a
monthly basis and reports its findings to the Manager.
Separately, the investment portfolio is reconciled regularly
by the Manager.
Other issues addressed
As well as fraud risk and corporate governance and
disclosures, the other accounting area of financial
reporting particularly considered by the Committee was
compliance with Sections 1158 and 1159 of the
Corporation Tax Act 2010. Approval of the Company as
an investment trust under those sections for financial
years commencing on or after 1 April 2012 has been
obtained and ongoing compliance with the eligibility
criteria is monitored on a regular basis by the Manager
and reported to the Directors.
In addition the Committee conducted its annual review of
the Auditor as well as undertaking a tender for the
external audit of the Company.
The Financial Reporting Council (“FRC”) reviewed the
Company’s Annual Report for the year ended 31 March
2024. The Committee was pleased to note that the FRC
had no questions or queries but did make suggestions for
improvements to the tax disclosures and Alternative
Performance Measures. The Committee has considered
these suggestions and made appropriate amendments in
this Annual Report.
Review of Auditor
The Committee has reviewed, and considered
appropriate, the effectiveness of the Auditor including:
· Independence - the Auditor discusses with the
Committee, at least annually, the steps it takes to ensure
its independence and objectivity and makes the
Committee aware of any potential issues, explaining all
relevant safeguards;
· Quality of audit work - including the ability to resolve
issues in a timely manner (identified issues are
satisfactorily and promptly resolved), its
communications/presentation of outputs (the
explanation of the audit plan, any deviations from it and
the subsequent audit findings are comprehensive and
comprehensible), and working relationship with
management (the Auditor has an effective working
relationship with the Manager). The Committee was
satisfied that the Independent Auditor demonstrated an
appropriate level of scepticism of the Manager’s
judgement – an example was the interpretation of
Indian capital gains tax legislation, where the Manager
had pursed a prudent approach; and
· Quality of people and service - including continuity and
succession plans (the audit team is made up of
sufficient, suitably experienced staff with provision
made for knowledge of the investment trust sector and
retention on rotation of the senior statutory auditor).
Audit Committee’s Report
Continued
abrdn New India Investment Trust plc 45
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Audit tender and proposed appointment of
Deloitte LLP as Auditor
Listed companies are required to tender the external audit
at least every ten years and to change Auditor at least
every twenty years. The Committee had last undertaken
an audit tender in 2016 when KPMG LLP was appointed as
Auditor in respect of the financial years ended on or after
31 March 2017. Accordingly, the Company was required
to tender the external audit no later than for the year
ending 31 March 2027.
During the year, the Committee conducted a tender for
the external audit for the years ending on or after 31
March 2026. KPMG LLP, as the incumbent Auditor, was
invited to participate in the tender, alongside four other
audit firms. The Committee received presentations from
three firms, following which two were recommended to
the Board before Deloitte LLP was selected as the
proposed Auditor.
Deloitte LLP has expressed its willingness to be appointed
Auditor. Shareholders will have the opportunity to vote on
this appointment at the AGM on 23 September 2025;
Resolution 8 proposes the appointment of Deloitte LLP as
Auditor and also seeks authorisation for the Directors to fix
the Auditor’s remuneration for the year to 31 March 2026.
In accordance with professional and regulatory
standards, the audit director responsible for the audit is
rotated at least every five years in order to protect
independence and objectivity and to provide fresh
challenge to the business. The year ended 31 March 2025
is the second year for which Carla Cassidy has served as
the senior statutory auditor.
The Committee recorded its appreciation for the service
provided by KPMG LLP.
Andrew Robson
Chairman of the Audit Committee
24 June 2025
46 abrdn New India Investment Trust plc
This Directors’ Remuneration Report comprises
three parts:
1. a Remuneration Policy, which is subject to a binding
shareholder vote every three years – was most
recently approved by shareholders at the AGM on 27
September 2023 where the votes for the relevant
resolution, on a poll, were: For – 32,556,121 votes
(99.8%); Against – 55,148 votes (0.2%); and Withheld –
28,130 votes. The Remuneration Policy will be put to
shareholders again at the AGM in 2026;
2. an annual Implementation Report, which is subject to
an advisory vote; and
3. an Annual Statement.
The law requires the Company’s Auditor to audit certain of
the disclosures provided. Where disclosures have been
audited, they are indicated as such. The Auditor’s opinion
is included in their report on pages 50 to 55.
The Directors’ Remuneration Policy and level of Directors’
remuneration are determined by the Nomination
Committee, which was chaired by Michael Hughes
throughout the year, and comprises all of the Directors.
The Remuneration Policy is reviewed by the Nomination
Committee on an annual basis.
Remuneration Policy
The Board’s policy is that the remuneration of non-
executive Directors should be sufficient to attract
Directors of the quality required to run the Company
successfully. The remuneration should also reflect the
nature of the Directors’ duties, responsibilities and the
value of their time spent and be fair and comparable
to that of other investment trusts that are similar in
size and have a similar capital structures and
investment objectives.
Appointment
· The Company only intends to appoint non-executive
Directors.
· All the Directors are non-executive appointed under the
terms of Letters of Appointment.
· Directors must retire and be subject to election, at the
first AGM after their appointment, and re-election at
least every three years thereafter, although the Board
has approved a policy of annual re-election.
· New appointments to the Board will be placed on the
fee applicable to all Directors at the time of
appointment.
· No incentive or introductory fees will be paid to
encourage a Directorship.
· The Directors are not eligible for bonuses, pension
benefits, share options, long term incentive schemes or
other benefits.
· Directors are entitled to reimbursement of out-of-
pocket expenses incurred in connection with the
performance of their duties, including travel expenses.
· The Company indemnifies its Directors for all costs,
charges, losses, expenses and liabilities which may be
incurred in the discharge of their duties.
Performance, Service Contracts,
Compensation and Loss of Office
· The Directors’ remuneration is not subject to any
performance-related fee.
· No Director has a service contract.
· No Director was interested in contracts with the
Company during the period or subsequently.
· The terms of appointment provide that a Director may
be removed without notice.
· Compensation will not be due upon leaving office.
· No Director is entitled to any other monetary payment
or to any assets of the Company.
Statement of Voting at General Meeting
At the Company’s last AGM, held on 20 September 2024,
shareholders approved the Directors’ Remuneration
Report (other than the Directors’ Remuneration Policy) in
respect of the year ended 31 March 2024 and the
following proxy votes were received on the Resolution: For
– 28,355,149 votes (99.9%); Against – 36,879 votes (0.1%);
and Withheld – 14,967 votes.
The fact that the Remuneration Policy is subject to a
binding vote at every third AGM does not imply any
change on the part of the Company. The principles
remain the same as for previous years. There have been
no changes to the Directors’ Remuneration Policy during
the period of this Report nor are there any proposals for
the foreseeable future.
Directors’ Remuneration Report
abrdn New India Investment Trust plc 47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
This part of the Remuneration Report provides details of
the Company’s Remuneration Policy for Directors of the
Company. This policy takes into consideration the
principles of the UK Corporate Governance Code. No
shareholder views were sought in setting the
Remuneration Policy although any comments received
from shareholders would be considered on an ongoing
basis. As the Company has no employees and the Board
is comprised wholly of non-executive Directors and, given
the size and nature of the Company, the Board has not
established a separate Remuneration Committee during
the year under review. The Nomination Committee is
responsible for determining Directors’ remuneration.
The Directors’ Remuneration Policy was approved by
shareholders at the AGM on 27 September 2023.
Implementation Report
The Directors are non-executive and the limit on their
aggregate annual fees is set at £200,000 within the
Company’s Articles of Association. This limit may only be
amended by shareholder resolution and a resolution to
increase the limit from £150,000 was last approved by
shareholders at the AGM in 2018. Resolution 9 in the Notice
of the Annual General Meeting to be held on 23
September 2025 seeks shareholders’ approval to increase
this limit to £250,000.
Review of Directors’ Fees
The Directors’ fees for the year and the preceding year
are set out in the table below.
Year ended
31 March 2025
£
31 March 2024
£
Chairman 40,000 40,000
Chairman of Audit
Committee
34,500 34,500
Director 30,000 30,000
The Nomination Committee carried out a review of
Directors’ annual fees during the year, including assessing
the prevailing inflation rate and the increased time
required by the Company to devote to regulatory matters,
The Nomination Committee concluded that these should
change, with effect from 1 April 2025, to the following
rates: £44,000 for the Chairman, £37,000 for the Chairman
of the Audit Committee, £34,000 for the Senior
Independent Director and £33,000 for each other Director.
There are no further fees to disclose as the Company has
no employees, chief executive or executive directors.
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to employees with distributions to
shareholders. The fees paid to Directors are shown
in the table below.
Company Performance
During the year the Board carried out a review of
investment performance. The graph shows the share
price total return (assuming all dividends are reinvested)
to Ordinary shareholders compared to the total return
from the Benchmark for the ten-year period to 31 March
2025 (rebased to 100 at 31 March 2015). This Benchmark
was selected for comparison purposes as it is used by the
Board for investment performance measurement.
80
100
120
140
160
180
200
220
240
260
2015 2016 2017 2018 2019 2020 2021 20 22 2023 2024 2025
Sh are Pric e NAV Benc hm ark
Fees Payable (Audited)
The Directors who served in the year received the fees, as
set out in the table below, which excluded employers’
National Insurance contributions.
Year ended Year ended
31 March 2025 31 March 2024
Director £ £
Michael Hughes
40,000 40,000
David Simpson 30,000 30,000
Andrew Robson 34,500 34,500
Rebecca Donaldson 30,000 30,000
Irina Miklavchich
A
10,917 n/a
Total 145,417 134,500
A
Appointed as a Director on 20 November 2024
48 abrdn New India Investment Trust plc
Fees are pro-rated where a change takes place during a
financial year. There were no payments to third parties
from the fees referred to in the table above.
Annual Percentage Change in Directors‘ Remuneration
(Audited)
The table below sets out the annual percentage change in
Directors’ fees for the past five years.
Year
ended
31
March
2025
%
Year
ended
31
March
2024
%
Year
ended
31
March
2023
%
Year
ended
31
March
2022
%
Year
ended
31
March
2021
%
Michael Hughes
A
0.0 18.3 22.9 1.9 1.9
David Simpson
B
0.0 3.4 153.1 n/a n/a
Andrew Robson
C
0.0 61.6 n/a n/a n/a
Rebecca
Donaldson
D
0.0 3.5 5.5 74.6 n/a
Irina Miklavchich
E
100.0 n/a n/a n/a n/a
Hasan Askari
F
n/a n/a -47.8 1.4 1.4
Stephen White
F
n/a n/a -46.5 1.7 1.7
Rachel Beagles
G
n/a n/a n/a n/a -51.0
A
Appointed as a Director on 7 September 2026 and Chairman on
28 September 2022.
B
Appointed as a Director on 1 November 2021 and Senior Independent Director
on 28 September 2022.
C
Appointed as a Director on 1 August 2022 and Chairman of the Audit Committee on
28 September 2022.
D
Appointed as a Director on 1 September 2020.
E
Appointed as a Director on 20 November 2024.
F
Retired as a Director on 28 September 2022.
G
Retired as a Director on 23 September 2020.
Directors’ Interests in the Company (Audited)
The Directors are not required to have a shareholding in
the Company. The Directors (including their connected
persons) at 31 March 2025 and 31 March 2024 had no
interest in the share capital of the Company other than
those interests, all of which are beneficial, in the table
below, which were also unchanged as at the date of
this Report:
31 March 2025 31 March 2024
Ord. 25p Ord. 25p
Michael Hughes 8,115 8,115
David Simpson 3,860 3,860
Andrew Robson 4,000 4,000
Rebecca Donaldson 5,763 4,471
Irina Miklavchich 2,000 n/a
Annual Statement
On behalf of the Board and in accordance with Part 2 of
Schedule 8 of the Large and Medium-sized Companies
and Groups (Accounts and Reports) (Amendment)
Regulations 2013, the Board confirms that the above
Report on Remuneration Policy and Remuneration
Implementation summarises, as applicable, for the year
ended 31 March 2025:
· the major decisions on Directors’ remuneration;
· any substantial changes relating to Directors’
remuneration made during the year; and
· the context in which the changes occurred and in which
decisions have been taken.
Michael Hughes,
Chairman
24 June 2025
Directors’ Remuneration Report
Continued
abrdn New India Investment Trust plc 49
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law they
have elected to prepare the financial statements in
accordance with UK-adopted international accounting
standards and applicable law.
Under company law the Directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Company and of its profit or loss for that period. In
preparing these financial statements, the Directors are
required to:
· select suitable accounting policies and then apply them
consistently;
· make judgements and estimates that are reasonable,
relevant and reliable;
· state whether they have been prepared in accordance
with UK adopted international accounting standards;
· assess the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern; and
· use the going concern basis of accounting unless they
either intend to liquidate the Company or to cease
operations or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the
Company and enable them to ensure that its financial
statements comply with the Companies Act 2006. They
are responsible for such internal control as they determine
is necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open
to them to safeguard the assets of the Company and to
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are
also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Corporate Governance Statement that complies with that
law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website but not for the
content of any information included on the website that
has been prepared or issued by third parties. Legislation in
the UK governing the preparation and dissemination of
financial statements may differ from legislation in
other jurisdictions.
In accordance with Disclosure Guidance and
Transparency Rule 4.1.14R, the financial statements will
form part of the annual financial report prepared using
the single electronic reporting format under the TD ESEF
Regulation. The auditor's report on these financial
statements provides no assurance over the ESEF format.
Responsibility Statement of the Directors in respect of the
Annual Financial Report
We confirm that to the best of our knowledge:
· the financial statements, prepared in accordance with
the applicable set of accounting standards, give a true
and fair view of the assets, liabilities, financial position
and profit or loss of the Company; and
· the strategic report includes a fair review of the
development and performance of the business and the
position of the issuer, together with a description of the
principal risks and uncertainties that they face.
We consider the annual report and accounts, taken as a
whole, is fair, balanced and understandable and provides
the information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy.
For and on behalf of the Board
Michael Hughes,
Chairman
24 June 2025
Statement of Directors’ responsibilities in respect of the
Annual Report and financial statements
50 abrdn New India Investment Trust plc
1. Our opinion is unmodified
We have audited the financial statements of abrdn New
India Investment Trust plc (“the Company”) for the year
ended 31 March 2025 which comprise the Statement of
Comprehensive Income, Statement of Financial Position,
Statement of Changes in Equity, Statement of Cash Flows,
and the related notes, including the accounting policies in
note 1.
In our opinion the financial statements:
· give a true and fair view of the state of the Company’s
affairs as at 31 March 2025 and of its profits for the year
then ended;
· have been properly prepared in accordance with UK-
adopted international accounting standards; and
· have been prepared in accordance with the
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable
law. Our responsibilities are described below. We believe
that the audit evidence we have obtained is a sufficient
and appropriate basis for our opinion. Our audit opinion is
consistent with our report to the audit committee.
We were first appointed as auditor by the shareholders on
6 September 2016. The period of total uninterrupted
engagement is for the nine financial years ended 31
March 2025. We have fulfilled our ethical responsibilities
under, and we remain independent of the Company in
accordance with, UK ethical requirements including the
FRC Ethical Standard as applied to listed public interest
entities. No non-audit services prohibited by that standard
were provided.
Overview
Materiality: £4.7m (2024: £4.3m)
Financial statements as a whole 1.0% (2024: 0.9%) of Total Assets
Key audit matter vs 2024
Recurring risks Carrying amount of quoted investments
2 Key audit matters: our assessment of risks
of material misstatement
Key audit matters are those matters that, in our
professional judgement, were of most significance in the
audit of the financial statements and include the most
significant assessed risks of material misstatement
(whether or not due to fraud) identified by us, including
those which had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and
directing the efforts of the engagement team. We
summarise below the key audit matter (unchanged from
2024), in arriving at our audit opinion above, together with
our key audit procedures to address this matter and, as
required for public interest entities, our results from those
procedures. This matter was addressed, and our results
are based on procedures undertaken, in the context of,
and solely for the purpose of, our audit of the financial
statements as a whole, and in forming our opinion thereon,
and consequently are incidental to that opinion, and we
do not provide a separate opinion on this matter.
Independent Auditor’s Report to the Members of
abrdn New India Investment Trust plc
abrdn New India Investment Trust plc 51
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The risk Our response
Carrying amount of quoted
investments
£464.1m (2024: £465.8m)
Refer to page 44 (Audit
Committee Report), page 64
(accounting policy) and pages
70 and 71 (financial disclosures).
Low risk, high value
The Company’s portfolio of level 1 quoted
investments makes up 99.1% (2024: 98.1%) of the
Company’s total assets (by value) and is one of the
key drivers of results. We do not consider these
investments to be at a high risk of significant
misstatement, or to be subject to a significant level
of judgement because they comprise liquid,
quoted investments. However, due to their
materiality in the context of the financial
statements as a whole, they are considered to be
the areas which had the greatest effect on our
overall audit strategy and allocation of resources in
planning and completing our audit.
We performed the detailed tests below rather
than seeking to rely on the Company’s controls,
because the nature of the balance is such that we
would expect to obtain audit evidence primarily
through the detailed procedures below.
Our procedures included:
· Tests of detail: Agreeing the valuation of 100% of
level 1 quoted investments in the portfolio to
externally quoted prices; and
· Enquiry of Depositary: Agreeing 100% of level 1
quoted investment holdings in the portfolio to
independently received third party
confirmations from the investment Depositary.
· Our results: We found the carrying amount
of quoted investments to be acceptable
(2024: acceptable).
3. Our application of materiality and an
overview of the scope of our audit
Materiality for the financial statements as a whole was set
at £4.7m (2024: £4.3m), determined with reference to a
benchmark of total assets, of which it represents 1.0%
(2024: 0.9%).
In line with our audit methodology, our procedures on
individual account balances and disclosures were
performed to a lower threshold, performance materiality,
so as to reduce to an acceptable level the risk that
individually immaterial misstatements in individual
account balances add up to a material amount across the
financial statements as a whole. Performance materiality
was set at 75% (2024: 75%) of materiality for the financial
statements as a whole, which equates to £3.5m (2024:
£3.2m). We applied this percentage in our determination
of performance materiality because we did not identify
any factors indicating an elevated level of risk.
We agreed to report to the Audit Committee any
corrected or uncorrected identified misstatements
exceeding £234k (2024: £217k), in addition to other
identified misstatements that warranted reporting on
qualitative grounds.
Our audit of the Company was undertaken to the
materiality level specified above and was performed by a
single audit team.
The scope of the audit work performed was fully
substantive as we did not rely upon the Company’s
internal control over financial reporting.
52 abrdn New India Investment Trust plc
Impact of controls on our audit
As disclosed within the Director’s Report on page 33 and
the Statement of Corporate Governance on page 41,
administrative operations of the Company are provided
by abrdn Fund Managers Limited (the “Manager”), who
delegates that responsibility to BNP Paribas Fund Services
UK Limited (the “Administrator”). We therefore identified
the financial reporting system operated by the
Company’s Administrator to be the main IT system
relevant to our audit. We obtained and read the
Administrator’s type 2 service organisation controls report
to assist us in evaluating the design and operating
effectiveness of the IT general controls of the main
finance system, and we tested the design and
implementation of the IT Application controls.
Consistent with our approach noted within the key audit
matters on pages 50 and 51, we did not plan to rely on any
of the Company’s controls in relation to any areas of our
audit, because the nature of the majority of the
Company’s balances (including cash and loans) is such
that we would expect to obtain audit evidence primarily
from external confirmations. This is considered more
efficient, and we therefore took a fully substantive
approach in our audit.
4. Going concern
The Directors have prepared the financial statements on
the going concern basis as they do not intend to liquidate
the Company or to cease its operations, and as they have
concluded that the Company’s financial position means
that this is realistic. They have also concluded that there
are no material uncertainties that could have cast
significant doubt over its ability to continue as a going
concern for at least a year from the date of approval of
the financial statements (“the going concern period”).
We used our knowledge of the Company, its industry, and
the general economic environment to identify the
inherent risks to its business model and analysed how
those risks might affect the Company’s financial
resources or ability to continue operations over the going
concern period. The risks that we considered most likely to
adversely affect the Company’s available financial
resources and metrics relevant to debt covenants over
this period were:
· The impact of a significant reduction in the valuation of
investments and the implications for the Company’s
debt covenants;
· The liquidity of the investment portfolio and its ability to
meet the liabilities of the Company as and when they fall
due; and
· The operational resilience of key service organisations.
We considered whether these risks could plausibly affect
the liquidity or covenant compliance in the going concern
period by assessing the degree of downside assumption
that, individually and collectively, could result in a liquidity
issue, taking into account the Company’s current and
projected cash and liquid investment position.
We considered whether the going concern disclosure in
note 2(a) to the financial statements gives a full and
accurate description of the Directors’ assessment of going
concern, including the identified risks, dependencies, and
related sensitivities.
Our conclusions based on this work:
· we consider that the Directors’ use of the going concern
basis of accounting in the preparation of the financial
statements is appropriate;
· we have not identified, and concur with the Directors’
assessment that there is not, a material uncertainty
related to events or conditions that, individually or
collectively, may cast significant doubt on the
Company's ability to continue as a going concern for the
going concern period;
· we have nothing material to add or draw attention to in
relation to the Directors’ statement in Note 2 (a) to the
financial statements on the use of the going concern
basis of accounting with no material uncertainties that
may cast significant doubt over the Company’s use of
that basis for the going concern period, and we found
the going concern disclosure in note 2 (a) to be
acceptable; and
· the related statement under the Listing Rules set out on
page 37 and is materially consistent with the financial
statements and our audit knowledge.
However, as we cannot predict all future events or
conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that
were reasonable at the time they were made, the above
conclusions are not a guarantee that the Company will
continue in operation.
5. Fraud and breaches of laws and
regulations – ability to detect
Identifying and responding to risks of material misstatement
due to fraud
To identify risks of material misstatement due to fraud
(“fraud risks”) we assessed events or conditions that could
Independent Auditor’s Report to the Members of
abrdn New India Investment Trust plc
Continued
abrdn New India Investment Trust plc 53
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
indicate an incentive or pressure to commit fraud or
provide an opportunity to commit fraud. Our risk
assessment procedures included:
· Enquiring of Directors as to the Company’s high-level
policies and procedures to prevent and detect fraud, as
well as whether they have knowledge of any actual,
suspected or alleged fraud;
· Assessing the segregation of duties in place between
the Directors, the Administrator and the Company’s
Investment Manager; and
· Reading Board and Audit Committee minutes.
We communicated identified fraud risks throughout the
audit team and remained alert to any indications of fraud
throughout the audit.
As required by auditing standards, we perform
procedures to address the risk of management override
of controls, in particular to the risk that management may
be in a position to make inappropriate accounting entries.
We evaluated the design and implementation of the
relevant controls over journal entries and other
adjustments and made inquiries of the Administrator
about inappropriate or unusual activity relating to the
processing of journal entries and other adjustments.
Based on these procedures, we selected journal entries
for testing, which included material post-closing
journal entries.
On this audit we do not believe there is fraud risk related to
revenue recognition because the revenue is non-
judgemental and straightforward, with limited opportunity
for manipulation. We did not identify any significant
unusual transactions or additional fraud risks.
Identifying and responding to risks of material misstatement
related to compliance with laws and regulations
We identified areas of laws and regulations that could
reasonably be expected to have a material effect on the
financial statements from our general commercial and
sector experience and through discussion with the
Directors, the Investment Manager and the Administrator
(as required by auditing standards) and discussed with
the Directors the policies and procedures regarding
compliance with laws and regulations. As the Company is
regulated, our assessment of risks involved gaining an
understanding of the control environment including the
entity’s procedures for complying with regulatory
requirements. The potential effect of these laws
and regulations on the financial statements
varies considerably.
Firstly, the Company is subject to laws and regulations that
directly affect the financial statements including financial
reporting legislation (including related companies
legislation), distributable profits legislation, and its
qualification as an Investment Trust under UK taxation
legislation, any breach of which could lead to the
Company losing various deductions and exemptions from
UK corporation tax, and we assessed the extent of
compliance with these laws and regulations as part of our
procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and
regulations where the consequences of non-compliance
could have a material effect on amounts or disclosures in
the financial statements, for instance through the
imposition of fines or litigation. We identified the following
areas as those most likely to have such an effect: money
laundering, data protection, bribery and corruption
legislation and certain aspects of company legislation
recognising the financial and regulated nature of the
Company’s activities and its legal form. Auditing standards
limit the required audit procedures to identify non-
compliance with these laws and regulations to enquiry of
the Directors and the Administrator and inspection of
regulatory and legal correspondence, if any. Therefore, if
a breach of operational regulations is not disclosed to us
or evident from relevant correspondence, an audit will not
detect that breach.
Context of the ability of the audit to detect fraud or
breaches of law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some
material misstatements in the financial statements, even
though we have properly planned and performed our
audit in accordance with auditing standards. For example,
the further removed non-compliance with laws and
regulations is from the events and transactions reflected
in the financial statements, the less likely the inherently
limited procedures required by auditing standards would
identify it.
In addition, as with any audit, there remained a higher risk
of non-detection of fraud, as these may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal controls. Our audit procedures are
designed to detect material misstatement. We are not
responsible for preventing non-compliance or fraud and
cannot be expected to detect non-compliance with all
laws and regulations.
54 abrdn New India Investment Trust plc
6. We have nothing to report on the other
information in the Annual Report
The Directors are responsible for the other information
presented in the Annual Report together with the financial
statements. Our opinion on the financial statements does
not cover the other information and, accordingly, we do
not express an audit opinion or, except as explicitly stated
below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether, based on our financial
statements audit work, the information therein is
materially misstated or inconsistent with the financial
statements or our audit knowledge. Based solely on that
work we have not identified material misstatements in the
other information.
Strategic report and Directors’ report
Based solely on our work on the other information:
· we have not identified material misstatements in the
Strategic Report and the Directors’ Report;
· in our opinion the information given in those reports for
the financial year is consistent with the financial
statements; and
· in our opinion those reports have been prepared in
accordance with the Companies Act 2006.
Directors’ Remuneration Report
In our opinion the part of the Directors’ Remuneration
Report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Disclosures of emerging and principal risks and
longer-term viability
We are required to perform procedures to identify
whether there is a material inconsistency between the
Directors’ disclosures in respect of emerging and principal
risks and the viability statement, and the financial
statements and our audit knowledge.
Based on those procedures, we have nothing material to
add or draw attention to in relation to:
· the Directors’ confirmation within the Viability Statement
(on page 19) that they have carried out a robust
assessment of the emerging and principal risks facing
the Company, including those that would threaten its
business model, future performance, solvency
and liquidity;
· the principal risks and uncertainties disclosures
describing these risks and how emerging risks are
identified, and explaining how they are being managed
and mitigated; and
· the Directors’ explanation in the viability statement of
how they have assessed the prospects of the Company,
over what period they have done so and why they
considered that period to be appropriate, and their
statement as to whether they have a reasonable
expectation that the Company will be able to continue
in operation and meet its liabilities as they fall due over
the period of their assessment, including any related
disclosures drawing attention to any necessary
qualifications or assumptions.
We are also required to review the Viability Statement, set
out on page 19, under the Listing Rules. Based on the
above procedures, we have concluded that the above
disclosures are materially consistent with the financial
statements and our audit knowledge.
Our work is limited to assessing these matters in the
context of only the knowledge acquired during our
financial statements audit. As we cannot predict all future
events or conditions and as subsequent events may result
in outcomes that are inconsistent with judgments that
were reasonable at the time they were made, the
absence of anything to report on these statements is not a
guarantee as to the Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify
whether there is a material inconsistency between the
directors’ corporate governance disclosures and the
financial statements and our audit knowledge.
Based on those procedures, we have concluded that each
of the following is materially consistent with the financial
statements and our audit knowledge:
· the Directors’ statement that they consider that the
annual report and financial statements taken as a whole
is fair, balanced and understandable, and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy;
· the section of the annual report describing the work of
the Audit Committee, including the significant issues that
the audit committee considered in relation to the
financial statements, and how these issues were
addressed; and
Independent Auditor’s Report to the Members of
abrdn New India Investment Trust plc
Continued
abrdn New India Investment Trust plc 55
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
· the section of the Annual Report that describes the
review of the effectiveness of the Company’s risk
management and internal control systems.
We are required to review the part of the Corporate
Governance Statement relating to the Company’s
compliance with the provisions of the UK Corporate
Governance Code specified by the Listing Rules for our
review. We have nothing to report in this respect.
7. We have nothing to report on the other
matters on which we are required to report
by exception
Under the Companies Act 2006, we are required to report
to you if, in our opinion:
· adequate accounting records have not been kept, or
returns adequate for our audit have not been received
from branches not visited by us; or
· the financial statements and the part of the Directors’
Remuneration Report to be audited are not in
agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified
by law are not made; or
· we have not received all the information and
explanations we require for our audit.
We have nothing to report in these respects.
8. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page
49, the Directors are responsible for: the preparation of the
financial statements including being satisfied that they
give a true and fair view; such internal control as they
determine is necessary to enable the preparation of
financial statements that are free from material
misstatement, whether due to fraud or error; assessing the
Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern; and using the going concern basis of accounting
unless they either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue our opinion in an auditor’s report. Reasonable
assurance is a high level of assurance, but does not
guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of the
financial statements.
A fuller description of our responsibilities is provided on the
FRC’s website at: www.frc.org.uk/auditorsresponsibilities.
The Company will be including these financial statements
in an annual financial report prepared using the single
electronic reporting format specified in the TD ESEF
Regulation. This auditor’s report provides no assurance
over whether the annual financial report has been
prepared in accordance with that format.
9. The purpose of our audit work and to
whom we owe our responsibilities
This report is made solely to the Company’s members, as
a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been
undertaken so that we might state to the Company’s
members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company
and the Company’s members, as a body, for our audit
work, for this report, or for the opinions we have formed.
Carla Cassidy (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
LONDON
E14 5GL
24 June 2025
56 abrdn New India Investment Trust plc
Financial
Statements
abrdn New India Investment Trust plc 57
58 abrdn New India Investment Trust plc
Year ended Year ended
31 March 2025 31 March 2024
Revenue Capital Revenue Capital
return return Total return return Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Income
Income from investments 3 4,664 – 4,664 4,722 – 4,722
Interest 3 144 – 144 181 – 181
Gains on investments held at fair value
through profit or loss
10(a) – 47,026 47,026 – 106,805 106,805
Currency losses – (498) (498) – (403) (403)
4,808 46,528 51,336 4,903 106,402 111,305
Expenses
Investment management fees 4 (3,428) – (3,428) (2,964) – (2,964)
Administrative expenses 5 (1,057) – (1,057) (957) – (957)
(4,485) – (4,485) (3,921) – (3,921)
Profit before finance costs and taxation 323 46,528 46,851 982 106,402 107,384
Finance costs 6 (1,981) – (1,981) (2,544) – (2,544)
(Loss)/profit before taxation (1,658) 46,528 44,870 (1,562) 106,402 104,840
Taxation 7 (471) (12,924) (13,395) (472) (13,346) (13,818)
(Loss)/profit for the year (2,129) 33,604 31,475 (2,034) 93,056 91,022
(Loss)/return per Ordinary share (pence) 9 (4.24) 66.93 62.69 (3.77) 172.62 168.85
The Company does not have any income or expense that is not included in “(Loss)/profit for the year”, and therefore this represents
the “Total comprehensive income for the year”, as defined in IAS 1 (revised).
All of the (loss)/profit and total comprehensive income is attributable to the equity holders of the Company. There are no non-
controlling interests.
The total column of this statement represents the Statement of Comprehensive Income of the Company, prepared in accordance
with UK-adopted International Accounting Standards. The revenue and capital columns are supplementary to this and are prepared
under guidance published by the Association of Investment Companies (see Note 2 to the Financial Statements).
All items in the above statement derive from continuing operations.
The accompanying notes are an integral part of these financial statements.
Statement of Comprehensive Income
abrdn New India Investment Trust plc 59
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at As at
31 March 2025 31 March 2024
Notes £’000 £’000
Non-current assets
Investments held at fair value through profit or loss 10 464,101 465,789
Current assets
Cash at bank 3,727 6,452
Other receivables 11 195 2,403
3,922 8,855
Current liabilities
Bank loan 12(a) (19,488) (25,953)
Other payables 12(b) (2,308) (2,231)
(21,796) (28,184)
Net current liabilities (17,874) (19,329)
Non-current liabilities
Deferred tax liability on Indian capital gains 13 (20,628) (19,406)
Net assets 425,599 427,054
Share capital and reserves
Ordinary share capital 14 14,768 14,768
Share premium account 25,406 25,406
Capital redemption reserve 4,484 4,484
Capital reserve 385,498 384,824
Revenue reserve (4,557) (2,428)
Equity shareholders’ funds 425,599 427,054
Net asset value per Ordinary share (pence) 16 889.34 819.56
The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2025 and were signed on its
behalf by:
Michael Hughes
Chairman
The accompanying notes are an integral part of these financial statements.
Statement of Financial Position
60 abrdn New India Investment Trust plc
Year ended 31 March 2025
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 April 2024 14,768 25,406 4,484 384,824 (2,428) 427,054
Net gain/(loss) after taxation – – – 33,604 (2,129) 31,475
Buyback of share capital to treasury – – – (32,930) – (32,930)
Balance at 31 March 2025 14,768 25,406 4,484 385,498 (4,557) 425,599
Year ended 31 March 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 April 2023 14,768 25,406 4,484 313,655 (394) 357,919
Net gain/(loss) after taxation – – – 93,056 (2,034) 91,022
Buyback of share capital to treasury – – – (21,887) – (21,887)
Balance at 31 March 2024 14,768 25,406 4,484 384,824 (2,428) 427,054
The accompanying notes are an integral part of these financial statements.
Statement of Chan
g
es in Equity
abrdn New India Investment Trust plc 61
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Year ended Year ended
31 March 2025 31 March 2024
Notes £’000 £’000
Cash flows from operating activities
Dividend income received 4,664 4,722
Interest income received 12 (4)
Investment management fee paid (3,448) (3,203)
Other cash expenses (1,438) (970)
Cash (outflow)/inflow from operations (210) 545
Interest paid (2,093) (2,248)
Net cash outflow from operating activities (2,303) (1,703)
Cash flows from investing activities
Purchases of investments (136,654) (96,207)
Sales of investments 187,528 128,508
Indian capital gains tax paid on sales (11,703) (5,088)
Net cash inflow from investing activities 39,171 27,213
Cash flows from financing activities
Buyback of shares (32,482) (21,792)
Repayment of loan (6,500) (4,000)
Costs associated with loan (113) (41)
Net cash outflow from financing activities (39,095) (25,833)
Net decrease in cash and cash equivalents (2,227) (323)
Cash and cash equivalents at the start of the year 6,452 7,178
Effect of foreign exchange rate changes (498) (403)
Cash and cash equivalents at the end of the year 17 3,727 6,452
The accompanying notes are an integral part of these financial statements.
Statement of Cash Flows
62 abrdn New India Investment Trust plc
1. Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the
Corporation Tax Act 2010 (“s1158”).
2. Accounting policies
(a) Basis of preparation. The accounting policies which follow set out those policies which apply in preparing the financial
statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with UK-adopted international accounting standards
(“IFRS”). The Company adopted all of the IFRS which took effect during the year.
The financial statements have also been prepared in accordance with the Companies Act 2006 and the Statement of
Recommended Practice (SORP), “Financial Statements of Investment Trust Companies and Venture Capital Trusts,”
issued in July 2022.
The Directors have reviewed the Company’s ability to continue as a going concern. The Company’s assets consist
substantially of a portfolio of quoted securities which in most circumstances are realisable within a short timescale. The
Directors are mindful of the principal risks and uncertainties disclosed on pages 15 to 17 and the financial risks disclosed
in Note 17 to the financial statements and have reviewed cashflow forecasts detailing revenue and expenses for at least
12 months from the date of this Report. Accordingly, the Directors believe that the Company has adequate financial
resources to continue in operational existence for at least 12 months from the date of this Report.
In August 2022, the Company entered into a three–year, £30 million revolving credit facility (the “Facility”) with Royal Bank
of Scotland International Limited (London Branch), part of NatWest Group plc, of which £19.5m was drawn down at 31
March 2025 (2024 – £26m). The Board has set limits for borrowing and regularly reviews the level of any gearing and
compliance with banking covenants.
The results of stress testing prepared by the Manager, which models a sharp decline in market levels and income,
demonstrated that the Company has the ability to raise sufficient funds so as to both pay expenses and remain within its
debt covenants.
Having taken these factors into account, the Directors believe that the Company has adequate resources to continue in
operational existence and has the ability to meet its financial obligations as they fall due for a period of at least twelve
months from the date of approval of this Report. For these reasons, the Company continues to adopt the going concern
basis of accounting in preparing the financial statements.
Significant estimates and judgements. The preparation of financial statements in conformity with IFRS requires the use of
certain critical accounting estimates which requires management to exercise its judgement in the process of applying
the accounting policies. The Directors do not believe that any accounting judgements or estimates have been applied to
these financial statements that have a significant risk of causing material adjustment to the carrying amount of assets
and liabilities within the next financial year. The Company considers the selection of Sterling as its functional currency to
be a key judgement.
Functional currency. The Company’s investments are made in Indian Rupee and US Dollar, however the Board considers
the Company’s functional currency to be Sterling. In arriving at this conclusion, the Board considered that the shares of
the Company are listed on the London Stock Exchange, it is regulated in the United Kingdom, principally having its
shareholder base in the United Kingdom and also pays expenses in Sterling, as it would dividends, where declared by
the Company.
Notes to the Financial Statements
For the year ended 31 March 2025
abrdn New India Investment Trust plc 63
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
New and amended accounting standards and interpretations. The Company applied certain Standards and
Amendments, which are effective for annual periods beginning on or after 1 January 2024. The adoption of these
Standards and Amendments did not have a material impact on the financial results of the Company. The nature is
described below:
– IAS 1 Amendments (Classification of Liabilities as Current or Non-Current)
– IAS 1 Amendments (Non-current Liabilities with Covenants)
At the date of authorisation of these financial statements, the following amendments to Standards and Interpretations
were assessed to be relevant and are all effective for annual periods beginning on or after 1 January 2025 and
thereafter;
– IAS 21 Amendments (Lack of Exchangeability)
The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective
and the Board does not anticipate that the adoption of these Standards and Interpretations in future periods will
materially impact the Company’s financial results in the period of initial application although there may be revised
presentations to the Financial Statements and additional disclosures.
(b) Presentation of Statement of Comprehensive Income. In order to better reflect the activities of an investment trust
company and in accordance with guidance issued by the AIC, supplementary information which analyses the
Statement of Comprehensive Income between items of a revenue and capital nature has been presented in the
Statement of Comprehensive Income.
(c) Segmental reporting. The Board has considered the requirements of IFRS 8 ‘Operating Segments’ and is of the view that
the Company is engaged in a single segment business, which is one of investing in Indian quoted equities and that
therefore the Company has only a single operating segment. The Board of Directors, as a whole, has been identified as
constituting the chief operating decision maker of the Company. The key measure of performance used by the Board to
assess the Company’s performance is the total return on the Company’s net asset value, as calculated under IFRS, and
therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the
financial statements.
(d) Income. Dividends receivable on equity shares are recognised in the Statement of Comprehensive Income on the ex-
dividend date, and gross of any applicable withholding tax. Dividends receivable on equity shares where no ex-dividend
date is quoted are brought into account when the Company’s right to receive payment is established. Special dividends
are credited to capital or revenue, according to their circumstances. Where a company has elected to receive dividends
in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in the
Statement of Comprehensive Income. Provision is made for any dividends not expected to be received. Interest
receivable from cash and short-term deposits is accrued to the end of the financial year.
64 abrdn New India Investment Trust plc
(e) Expenses and interest payable. All expenses, with the exception of interest expenses, which are recognised using the
effective interest method, are accounted for on an accruals basis. Expenses are charged to the revenue column of the
Statement of Comprehensive Income except as follows:
- expenses which are incidental to the acquisition or disposal of an investment are charged to the capital column of the
Statement of Comprehensive Income and separately identified and disclosed in note 10 (b); and
- expenses are charged to the capital column of the Statement of Comprehensive Income where a connection with the
maintenance or enhancement of the value of the investments can be demonstrated.
(f) Taxation. The tax expense represents the sum of the tax currently payable and deferred tax. Tax payable is based on the
taxable profit for the year. Taxable profit differs from profit before tax as reported in the Statement of Comprehensive
Income because it excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the Statement of Financial Position date.
Deferred tax. Deferred tax is recognised in respect of all temporary differences at the Statement of Financial Position
date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the
future have occurred at the Statement of Financial Position date. This is subject to deferred tax assets only being
recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the
temporary differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the
legal jurisdictions in which they arise, using enacted tax rates that are expected to apply at the date the deferred tax
position is unwound.
(g) Investments. Investments have been designated upon initial recognition as fair value through profit or loss. Investments
are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require
delivery within the timeframe established by the market concerned, and are measured initially at fair value. Subsequent
to initial recognition, investments are recognised at fair value through profit or loss.
The Company classifies its investments based on their contractual cash flow characteristics and the Company’s
business model for managing the assets. The business model, which is the determining feature, is such that the portfolio
of investments is managed, and performance and risk is evaluated, on a fair value basis. The Manager is also
compensated based on the fair value of the Company’s assets. Consequently, all investments are measured at fair value
through profit or loss.
Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms
require delivery within the timeframe established by the market concerned, and are measured at fair value. For listed
investments, this is deemed to be bid market prices or closing prices on a recognised stock exchange.
Gains and losses arising from the changes in fair value are included in net profit or loss for the period as a capital item.
Transaction costs are treated as a capital cost.
(h) Cash and cash equivalents. Cash comprises cash in hand and at banks and short-term deposits. Cash equivalents are
short-term, highly-liquid investments that are readily convertible to known amounts of cash, and that are subject to an
insignificant risk of changes in value.
(i) Other receivables. The Company has adopted the classification and measurement provisions of IFRS 9 ‘Financial
Instruments’ as other receivables are held to collect contractual cash flows and give rise to cash flows representing
solely payments of principal and interest. As such they are measured at amortised cost. Other receivables held by the
Company do not carry any interest, they have been assessed as not having any expected credit losses over their lifetime
due to their short-term nature and low credit risk.
Notes to the Financial Statements
Continued
abrdn New India Investment Trust plc 65
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
(j) Other payables. The Company has adopted the classification and measurement provisions of IFRS 9 ‘Financial
Instruments’. Other payables are non-interest bearing and are stated at amortised cost.
(k) Borrowings. Bank loans are initially recognised at cost, being the fair value of the consideration received, net of any issue
expenses. Subsequently, they are measured at amortised cost using the effective interest method. Finance charges are
accounted for on an accruals basis using the effective interest rate method and are charged 100% to revenue.
(l) Nature and purpose of reserves
Called-up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of
shares in issue and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to
the capital redemption reserve. This reserve is not distributable.
Share premium account. The balance classified as share premium includes the premium above nominal value from the
proceeds on issue of any equity share capital comprising Ordinary shares of 25p. This reserve is not distributable.
Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were redeemed, and
subsequently cancelled by the Company, at which point an amount equal to the par value of the Ordinary share capital
was transferred from the Ordinary share capital to the capital redemption reserve. This reserve is not distributable.
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any increases
and decreases in the fair value of investments held that have been recognised in the Statement of Comprehensive
Income. The part of this reserve represented by realised capital gains is available for distribution by way of dividend.
Subsequent to the special reserve being extinguished, the capital reserve has been used to fund the share buy-backs by
the Company.
Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the
Statement of Comprehensive Income. The revenue reserve is distributable by way of dividend.
(m) Foreign currency. Overseas monetary assets and liabilities are converted into Sterling at the rate of exchange ruling at
the Statement of Financial Position date. Transactions during the year involving foreign currencies are converted at the
rate of exchange ruling at the transaction date. Any gain or loss arising from a change in exchange rates subsequent
to the date of the transaction is included as an exchange gain or loss and recognised in the Statement of
Comprehensive Income.
(n) Cash flow statement classification of investments. Cash flow relating to investments have been presented as investing
cash flows as opposed to cash flows from operating activities. The Board considered this to be an appropriate
classification reflecting the fact that these cashflows are allocated towards resources intended to generate future
income and cash flows, in line with the definition of investing activities within IAS 7.
66 abrdn New India Investment Trust plc
3. Income
2025 2024
£’000 £’000
Income from investments
Overseas dividends 4,664 4,722
Other income
Deposit interest 144 172
Other interest – 9
144 181
Total income 4,808 4,903
4. Investment management fees
2025 2024
£’000 £’000
Investment management fees 3,428 2,964
The Company has an agreement with the Manager for the provision of management and secretarial services.
During the year, the management fee was payable monthly in arrears and was based on an annual amount of 0.8% up to
£300 million and 0.6% thereafter of the Company’s net assets valued monthly. The management agreement is terminable by
either the Company or the Manager on six months’ notice. The amount payable in respect of the Company for the year was
£3,428,000 (2024 – £2,964,000) and the balance due to the Manager at the year end was £499,000 (2024 – £520,000).
Notes to the Financial Statements
Continued
abrdn New India Investment Trust plc 67
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
5. Administrative expenses
2025 2024
£’000 £’000
Directors’ fees 145 135
Promotional activities 208 190
Auditor’s remuneration:
– fees payable for the audit of the Company’s annual financial statements 80 70
Legal and advisory fees 95 59
Custodian and overseas agents’ charges 378 319
Depositary fees 49 39
Other 102 145
1,057 957
The Manager supports the Company with promotional activities through its participation in the abrdn Investment Trust Share
Plan and ISA. The total fees paid and payable under the agreement during the year were £208,000 (2024 – £190,000) and
£110,000 (2024 – £98,000) was due to the Manager at the year end.
The only fees paid to KPMG LLP by the Company are the audit fees of £79,500 (2024 – £70,000). The amounts disclosed above
for Auditor’s remuneration are all shown net of VAT.
6. Finance costs
2025 2024
£’000 £’000
In relation to bank loans 1,981 2,544
Finance costs are charged 100% to revenue as disclosed in the accounting policies.
68 abrdn New India Investment Trust plc
7. Taxation
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Indian capital gains tax charge on sales – 11,766 11,766 – 5,088 5,088
Overseas taxation 471 – 471 472 – 472
Total current tax charge for the year 471 11,766 12,237 472 5,088 5,560
Movement in deferred tax liability on Indian
capital gains
– 1,158 1,158 – 8,258 8,258
Total tax charge for the year 471 12,924 13,395 472 13,346 13,818
The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Tax Act 1961. Accordingly,
when investments are realised at a value above cost and investments are held at fair value above cost, a tax charge will
result. The Company has recognised a deferred tax liability of £20,628,000 (2024 – £19,406,000) on capital gains which
may arise if Indian investments are sold. Up to 22 July 2024 Indian CGT was charged at 10% on long-term holdings and
15% on short-term holdings. From 23 July 2024 Indian CGT is charged at 12.5% on long-term holdings and 20% on short-
term holdings.
On 1 April 2020, the Indian Government withdrew an exemption from withholding tax on dividend income. Dividends are
received net of 20% withholding tax and an excess charge of 4%. A further surcharge of either 2% or 5% is applied if the
receipt exceeds a certain threshold. Of this total charge, 10% of the withholding tax is irrecoverable with the remainder
being offset against the deferred tax liability on Indian capital gains in the first instance where there are capital gains
during the year or if not then it is shown in the Statement of Financial Position as an asset due for reclaim.
Notes to the Financial Statements
Continued
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(b) Factors affecting the tax charge for the year. The tax charged for the year can be reconciled to the (loss)/profit per the
Statement of Comprehensive Income as follows:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(Loss)/profit before tax (1,658) 46,528 44,870 (1,562) 106,402 104,840
UK corporation tax on (loss)/profit at the
standard rate of 25% (2024 – 25%)
A
(415) 11,632 11,217 (391) 26,601 26,210
Effects of:
Gains on investments held at fair value through
profit or loss not taxable not subject to UK
corporation tax
– (11,757) (11,757) – (26,702) (26,702)
Currency losses not taxable – 125 125 – 101 101
Deferred tax not recognised in respect of tax
losses
1,580 – 1,580 1,474 – 1,474
Corporate interest restriction – – – 93 – 93
Expenses not deductible for tax purposes 1 – 1 4 – 4
Indian capital gains tax charged on sales – 11,766 11,766 – 5,088 5,088
Movement in deferred tax liability on Indian
capital gains
– 1,158 1,158 – 8,258 8,258
Irrecoverable overseas withholding tax 471 – 471 472 – 472
Non-taxable dividend income (1,166) – (1,166) (1,180) – (1,180)
Total tax charge 471 12,924 13,395 472 13,346 13,818
A
The tax reconciliation above reconciles the Company’s tax charge to the UK corporation tax rate because the Company is a UK company and, although the net
total charge primarily relates to Indian Capital Gains Tax, the most significant reconciling items normally relate to the exemptions from UK tax on both dividend
income and capital gains.
(c) At 31 March 2025, the Company had surplus management expenses and loan relationship debits of £45,520,000 (2024 –
£39,202,000) with a tax value of £11,380,000 (2024 – £9,801,000) based on enacted tax rates, in respect of which a
deferred tax asset has not been recognised. No deferred tax asset has been recognised because the Company is not
expected to generate taxable income in the future in excess of the deductible expenses of those future periods.
Therefore, it is unlikely that the Company will generate future taxable revenue that would enable the existing tax losses
to be utilised.
8. Ordinar
y
dividends on e
q
uit
y
shares
After the payment of operational expenses, there was no revenue available for distribution by way of dividend for the year
ended 31 March 2025 (2024 - £nil).
70 abrdn New India Investment Trust plc
9. (Loss)/return per Ordinary share
2025 2024
Revenue Capital Total Revenue Capital Total
Net (loss)/profit for the year (£’000) (2,129) 33,604 31,475 (2,034) 93,056 91,022
Weighted average number of Ordinary shares in issue 50,206,923 53,907,480
(Loss)/return per Ordinary share (pence) (4.24) 66.93 62.69 (3.77) 172.62 168.85
10. Investments held at fair value through profit or loss
2025 2024
(a) Valuation £’000 £’000
Opening book cost 302,906 296,380
Opening investment holdings fair value gains 162,883 94,991
Opening valuation 465,789 391,371
Movements in the year
:
Purchases 136,625 95,183
Sales - proceeds (185,339) (127,570)
Gains on investments 47,026 106,805
Closing valuation 464,101 465,789
2025 2024
£’000 £’000
Closing book cost 334,380 302,906
Closing investment holdings fair value gains 129,721 162,883
Closing valuation 464,101 465,789
The Company generated £185,339,000 (2024 - £127,570,000) from investments sold in the period. The book cost of
these investments when they were purchased was £105,151,000 (2024 - £88,658,000). These investments have
been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of
the investments.
Notes to the Financial Statements
Continued
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(b) Transaction costs. During the year, expenses were incurred in acquiring or disposing of investments classified as fair
value through profit or loss. These have been expensed through the capital column of the Statement of Comprehensive
Income, and are included within gains on investments at fair value through profit or loss in the Statement of
Comprehensive Income. The total costs were as follows:
2025 2024
£’000 £’000
Purchases 231 165
Sales 293 178
524 343
The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company’s
Key Information Document provided by the Manager are calculated on a different basis and in line with the
PRIIPs regulations.
11. Other receivables
2025 2024
£’000 £’000
Amounts due from brokers 139 2,328
Prepayments and accrued income 56 75
195 2,403
None of the above amounts are past their due date or impaired (2024 - nil).
12. Current liabilities
2025 2024
(a) Bank loan £’000 £’000
Loans repayable within one year 19,488 25,953
In August 2022, the Company entered into a three year £30 million multi–currency revolving loan facility with Royal Bank
of Scotland International Limited (London Branch). £19.5 million was drawn down at 31 March 2025 (31 March 2024 –
£26 million) at an all–in interest rate of 8.055% until 10 April 2025 (2024 – 8.7873% until 2 April 2024). On 30 June 2022, the
Company agreed an extension of the facility to 5 August 2025, incurring £105,000 of expenses which are amortised over
the remaining life of the loan.
On 19 June 2025, the Company renewed its facility with BNP Paribas, London Branch for three years and at the date of
this Report the Company had drawn down £19.5 million at an all-in interest rate of 5.51% until 21 July 2025.
72 abrdn New India Investment Trust plc
The terms of the loan facility contain covenants that consolidated gross borrowings should not exceed 20% of adjusted
investment portfolio value, the net asset value shall not at any time be less than £150 million and the investment portfolio
contains a minimum of 25 eligible investments. The Company complied with all covenants during the year and up to the
date of signing this Report.
2025 2024
(b) Other payables £’000 £’000
Amounts due to brokers – 29
Amounts due to brokers relating to buybacks to treasury 898 453
Other creditors 1,410 1,749
2,308 2,231
13. Non-current liabilities
2025 2024
£’000 £’000
Deferred tax liability on Indian capital gains 20,628 19,406
14. Ordinary share capital
2025 2024
Number £’000 Number £’000
Authorised 200,000,000 50,000 200,000,000 50,000
Issued and fully paid
Ordinary shares of 25p each 47,855,793 11,964 52,107,910 13,028
Held in treasury:
Ordinary shares of 25p each 11,214,347 2,804 6,962,230 1,740
59,070,140 14,768 59,070,140 14,768
The Ordinary shares give shareholders voting rights, the entitlement to all of the capital growth in the Company’s assets, and
to all the income from the Company that is resolved to be distributed.
During the year 4,252,117 (2024 – 3,702,011) Ordinary shares of 25p each were repurchased by the Company at a total cost,
including transaction costs, of £32,930,000 (2024 – £21,887,000). All of the shares were placed in treasury. Shares held in
treasury represent 18.98% (2024 – 11.79%) of the Company’s total issued shares at the year end. Shares held in treasury do
not carry a right to receive dividends.
Notes to the Financial Statements
Continued
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15. Analysis of changes in net debt
Net
Currency Cash Non-cash
2024 differences flows movements 2025
£’000 £’000 £’000 £’000 £’000
Cash and short term deposits 6,452 (498) (2,227) - 3,727
Debt due within one year (25,953) - 6,500 (35) (19,488)
(19,501) (498) 4,273 (35) (15,761)
Net
Currency Cash Non-cash
2023 differences flows movements 2024
£’000 £’000 £’000 £’000 £’000
Cash and short term deposits 7,178 (403) (323) - 6,452
Debt due within one year (29,918) - 4,000 (35) (25,953)
(22,740) (403) 3,677 (35) (19,501)
A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences
from the above analysis.
16. Net asset value per Ordinary share
The net asset value per Ordinary share is based on a net asset value of £425,599,000 (2024 – £427,054,000) and on
47,855,793 (2024 – 52,107,910) Ordinary shares, being the number of Ordinary shares in issue at the year end, excluding
shares held in treasury.
74 abrdn New India Investment Trust plc
17. Financial instruments
Risk management. The Company’s investment activities expose it to various types of financial risk associated with the financial
instruments and markets in which it invests. The Company’s financial instruments comprise securities and other investments,
cash balances and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases
awaiting settlement, and debtors for accrued income.
The Board has delegated the risk management function to the Manager under the terms of its management agreement with
the Manager (further details of which are included under note 4). The Board regularly reviews and agrees policies for
managing each of the key financial risks identified with the Manager. The types of risk and the Manager’s approach to the
management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not
changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors on the
grounds of their materiality.
Risk management framework. The directors of the Manager collectively assume responsibility for the Manager’s obligations
under the AIFMD including reviewing investment performance and monitoring the Company’s risk profile during the year.
The Manager is a fully integrated member of Aberdeen, which provides a variety of services and support to the Manager in the
conduct of its business activities, including in the oversight of the risk management framework for the Company. The Manager
has delegated the day to day administration of the investment policy to the Investment manager, which is responsible for
ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment
disclosures to investors (details of which can be found on the Company’s website). The Manager has retained responsibility for
monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company.
The Manager conducts its risk oversight function through the operation of the Aberdeen’s risk management processes and
systems which are embedded within the Aberdeen’s operations. Aberdeen’s Risk Division supports management in the
identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance,
Business Risk, Market Risk and Risk Management. The team is headed up by Aberdeen’s Chief Risk Officer, who reports to the
CEO of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout
the organisation using Aberdeen’s operational risk management system (“SHIELD”).
Aberdeen’s Internal Audit Department is independent of the Risk Division and reports directly to Aberdeen’s CEO and to the
Audit Committee of Aberdeen’s Board of Directors. The Internal Audit Department is responsible for providing an independent
assessment of the Aberdeen’s control environment.
Aberdeen’s corporate governance structure is supported by several committees to assist the board of directors of Aberdeen,
its subsidiaries and the Company to fulfil their roles and responsibilities. Aberdeen’s Risk Division is represented on all
committees, with the exception of those committees that deal with investment recommendations. The specific goals and
guidelines on the functioning of those committees are described on the committees’ terms of reference.
Market risk. The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of
changes in market prices. This market risk comprises three elements – interest rate risk, foreign currency risk and other
price risk.
Notes to the Financial Statements
Continued
abrdn New India Investment Trust plc 75
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Interest rate risk. The interest rate risk profile of the portfolio of the Company’s financial assets and liabilities, excluding equity
holdings which are all non-interest bearing, at the Statement of Financial Position date was as follows:
Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
At 31 March 2025 Years % £’000 £’000
Assets
Sterling – 2.96 – 2,212
US Dollars – – – 4
Indian Rupee – – – 1,511
– 3,727
Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
Years % £’000 £’000
Liabilities
Bank loan – £19,500,000 0.08 8.05 19,488 –
Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
At 31 March 2024 Years % £’000 £’000
Assets
Sterling – 3.69 – 6,032
US Dollars – – – 8
Indian Rupee – – – 412
– 6,452
Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
Years % £’000 £’000
Liabilities
Bank loan – £26,000,000 0.17 8.79 25,953 –
76 abrdn New India Investment Trust plc
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted
average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. The maturity
date of the Company’s loans is shown in note 12.
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
The Company’s equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the
above tables.
Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates
are taken into account when making investment and borrowing decisions.
Interest rate sensitivity. The sensitivity analyses below have been determined based on the exposure to interest rates for both
derivative and non-derivative instruments at the Statement of Financial Position date and the stipulated change taking place at
the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have
floating rates.
The rate of interest on the loan is the percentage rate per annum which is the aggregate of the applicable margin, adjusted
SONIA rate and mandatory cost if any.
If interest rates had been 100 basis points higher or lower (based on current parameter used by Manager’s Investment Risk
Department on risk assessment) and all other variables were held constant, the Company’s revenue return for the year ended
31 March 2025 would have decreased/increased by £181,000 (2024 - decrease/increase £182,000). This is mainly attributable
to the Company’s exposure to interest rates on its floating rate cash balances and bank loans. These figures have been
calculated based on cash positions and bank loans at each year end.
In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of
exposure changes frequently as part of the interest rate risk management process used to meet the Company’s objectives.
The risk parameters used will also fluctuate depending on the current market perception.
Foreign currency risk. The Company’s total return and net assets can be significantly affected by currency translation
movements as the majority of the Company’s assets and income are denominated in currencies other than Sterling, which is
the Company’s functional currency.
Management of the risk. It is not the Company’s policy to hedge this risk but it reserves the right to do so, to the extent possible.
The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not
hedge this currency risk.
Notes to the Financial Statements
Continued
abrdn New India Investment Trust plc 77
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Foreign currency exposure by currency of denomination:
2025 2024
Net Total Net Total
Overseas monetary currency Overseas monetary currency
investments assets exposure investments assets exposure
£’000 £’000 £’000 £’000 £’000 £’000
US Dollar - 4 4 - 8 8
Indian Rupee 464,101 1,650 465,751 465,789 2,711 468,500
464,101 1,654 465,755 465,789 2,719 468,508
Foreign currency sensitivity. The following tables show the impact to a 10% increase and a 10% decrease in Sterling against the
foreign currency in which the Company has exposure.
If Sterling were to strengthen by 10%, there would be following impact:
2025 2024
Equity
A
Equity
A
£’000 £’000
US Dollar – (1)
Indian Rupee (42,341) (42,591)
(42,341) (42,592)
If Sterling were to weaken by 10%, there would be following impact:
2025 2024
Equity
A
Equity
A
£’000 £’000
US Dollar – 1
Indian Rupee 51,750 52,056
51,750 52,057
A
Represents total current exposure to other currencies as defined on page 76.
Price risk. Price risks (ie, changes in market prices other than those arising from interest rate or currency risk) may affect the
value of the quoted investments.
78 abrdn New India Investment Trust plc
Management of the risk. It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to reduce
the risk arising from factors specific to a sector. Both the allocation of assets and the stock selection process act to reduce
market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly
in order to review investment strategy. The investments held by the Company are all listed on the Bombay (Mumbai) Stock
Exchange and/or The Indian National Stock Exchange.
Price risk sensitivity. If market prices at the Statement of Financial Position date had been 15% higher or lower (which the
Directors consider to be a reasonable potential change in market prices) while all other variables remained constant, the
return attributable to Ordinary shareholders for the year ended 31 March 2025 would have increased /(decreased) by
£69,615,000 (2024 – increased/(decreased) by £69,868,000) and capital reserves would have increased /(decreased) by the
same amount.
Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Management of the risk. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and
reviews these on a regular basis. Borrowings comprise a £30 million revolving multi-currency credit facility, which expires on 5
August 2025. Other payables are settled within one year. Details of borrowings and other payables at 31 March 2025 are
shown in note 12.
Liquidity risk is not considered to be significant as the Company’s assets comprise mainly readily realisable securities, which
can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility,
details of which can be found in note 12. Details of the Board’s policy on gearing are shown in the interest rate risk section of
this note.
Liquidity risk exposure. The Company has a £30 million uncommitted multicurrency revolving loan facility, of which £19,500,000
(2024 - £26,000,000) was drawn down at the year end. Other payables amounted to £2,308,000 (2024 - £2,231,000).
Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction, which could
result in the Company suffering a loss.
Management of the risk. The risk is actively managed as follows:
- investment transactions are carried out with a number of brokers, whose credit standing is reviewed periodically by the
Manager, and limits are set on the amount that may be due from any one broker;
- the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed
trade reports by the Manager on a daily basis. In addition, both stock and cash reconciliations to custodians’ records are
performed on a daily basis by the Manager to ensure discrepancies are investigated on a timely basis. The Manager’s
Compliance department carries out periodic reviews of the Custodian’s operations and reports its findings to the
Manager’s Risk Management Committee and to the Board of the Company. This review will also include checks on the
maintenance and security of investments held; and
- cash is held only with reputable banks whose credit ratings are monitored on a regular basis.
None of the Company’s financial assets are secured by collateral or other credit enhancements (2024 - none).
Notes to the Financial Statements
Continued
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Credit risk exposure. In summary, compared to the amounts included in the Statement of Financial Position, the maximum
exposure to credit risk at 31 March was as follows:
2025 2024
Statement of Statement of
Financial Maximum Financial Maximum
Position Exposure Position Exposure
£’000 £’000 £’000 £’000
Current assets
Loans and receivables 195 195 2,403 2,403
Cash at bank and in hand 3,727 3,727 6,452 6,452
3,922 3,922 8,855 8,855
The exposure noted in the above table is not representative of the exposure across the year as a whole.
None of the Company’s financial assets are past due or impaired (2024 - none).
Fair values of financial assets and financial liabilities. The fair value of bank loans are represented in the table below;
2025 2024
£’000 £’000
Bank loan 19,488 25,953
Investments held at fair value through profit or loss are valued at their quoted bid prices which equate to their fair values.
The fair value and the carrying value of the bank loan in the Statement of Financial Position are the same at £19,488,000 as at
31 March 2025 (2024 - £25,953,000) due to its short-term nature.
The Directors are of the opinion that the other financial assets and liabilities carried at amortised cost equates to their fair value.
80 abrdn New India Investment Trust plc
18. Capital management policies and procedures
The Company’s capital management objectives are:
- to ensure that the Company will be able to continue as a going concern; and
- to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and
debt. The policy is that debt should not exceed 25% of net assets.
The Board, with the assistance of the Manager monitors and reviews the broad structure of the Company’s capital on an
ongoing basis. This review includes:
- the planned level of gearing, which includes taking account of the Manager’s views on the market;
- the opportunity to buy back equity shares for cancellation or holding in treasury, which takes account of the difference
between the net asset value per share and the share price (ie the level of share price discount or premium);
- the opportunity for new issues of equity shares; and
- the extent to which any revenue in excess of that which is required to be distributed should be retained.
The Company’s objectives, policies and processes for managing capital are unchanged from the preceding
accounting period.
19. Fair value hierarchy
IFRS 13 ‘Fair Value Measurement’ requires an entity to classify fair value measurements using a fair value hierarchy that reflects
the subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels:
Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable; and
Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value
hierarchy at the Statement of Financial Position date are as follows:
Level 1 Level 2 Level 3 Total
As at 31 March 2025 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 464,101 - - 464,101
Net fair value 464,101 - - 464,101
Notes to the Financial Statements
Continued
abrdn New India Investment Trust plc 81
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Level 1 Level 2 Level 3 Total
As at 31 March 2024 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 465,789 - - 465,789
Net fair value 465,789 - - 465,789
a) Quoted equities. The fair value of the Company’s investments in quoted equities has been determined by reference to their
quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised
stock exchanges.
20. Controlling party
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate
controlling party.
21. Related party transactions
Directors’ fees and interests. Fees payable during the year to the Directors and their interests in shares of the Company are
disclosed within the Directors’ Remuneration Report on page 47.
22. Transactions with the Manager
The Company has an agreement with abrdn Fund Managers Limited for the provision of management, secretarial, accounting
and administration services and for the carrying out of promotional activities in relation to the Company. Details of transactions
during the year and balances outstanding at the year end are disclosed in notes 4 and 5.
23. Subsequent events
As noted in the Chairman’s Statement on page 7, the Company and Manager have agreed to a change in management fee
arrangements with effect from 1 April 2025. From this date, the management fee will be charged at a rate of 0.8% per annum
on the first £300 million of the Company’s market capitalisation and at a rate of 0.6% per annum thereafter.
In addition, the Company has also agreed to pay an administration fee at the rate of £45,000 per annum plus applicable VAT,
which will increase each year in line with Consumer Prices Inflation.
On 19 June 2025, the Company entered into a new, three-year, £30 million secured revolving credit facility with BNP Paribas
London Branch replacing the existing facility with Royal Bank of Scotland International Limited (London Branch).
82 abrdn New India Investment Trust plc
Alternative performance measures are numerical measures of the Company’s current, historical or future performance, financial
position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company’s
applicable financial framework includes IFRS and the AIC SORP. The Directors assess the Company’s performance against a range of
criteria which are viewed as particularly relevant for closed-end investment companies.
Adjusted net asset value per Ordinary share
A
This performance measure is used to provide a like for like comparison with the Company’s Benchmark for the purposes of the
potential five-yearly performance-related conditional tender offer announced on 24 March 2022, which was first in effect from 1 April
2022 and is therefore not applicable to earlier reporting periods. Further details on the conditional tender may be found in the
Chairman’s Statement on page 7.
2025 2024
Net assets attributable (£’000) 425,599 427,054
Accumulated Indian CGT charge since 1 April 2022 (£’000) 24,400 11,476
Net assets attributable excluding Indian CGT charge (£’000) 449,999 438,530
Number of Ordinary shares in issue 47,855,793 52,107,910
Adjusted net asset value per Ordinary share
A
940.32p 841.58p
A
Adjusted NAV is the Company’s NAV after adding back all Indian capital gains tax paid or accrued since 1 April 2022 in respect of realised and unrealised gains made on
investments. This adjustment is made because the Company’s benchmark, the MSCI India Index does not take account of Indian Capital Gains Tax.
Discount to net asset value per Ordinary share
The discount is the amount by which the share price is lower than the net asset value per share with debt at par value, expressed as a
percentage of the net asset value.
2025 2024
NAV per Ordinary share a 889.34p 819.56p
Share price b 756.00p 652.00p
Discount (a-b)/a 15.0% 20.4%
Alternative Performance Measures
abrdn New India Investment Trust plc 83
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents divided by shareholders’ funds, expressed as a percentage.
Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the year end.
2025 2024
Borrowings (£’000) a 19,488 25,953
Cash (£’000) b 3,727 6,452
Amounts due to brokers (£’000) c 898 482
Amounts due from brokers (£’000) d 139 2,328
Shareholders’ funds (£’000) e 425,599 427,054
Net gearing (a-b+c-d)/e 3.9% 4.1%
Ongoing charges ratio
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment
management fees and administrative expenses are expressed as a percentage of the average net asset values with debt at par value
throughout the year.
2025 2024
Investment management fees (£’000) 3,428 2,964
Administrative expenses (£’000) 1,057 957
Less: non-recurring charges
A
(£’000) (23) –
Ongoing charges (£’000) 4,462 3,921
Average net assets (£’000) 470,792 391,393
Ongoing charges ratio 0.95% 1.00%
A
Professional fees unlikely to recur.
The ongoing charges ratio provided in the Company’s Key Information Document is calculated in line with the PRIIPs regulations which
includes amongst other things, the cost of borrowings and transaction costs.
84 abrdn New India Investment Trust plc
Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking
into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-
ended and closed-ended competitors, and the Benchmark, respectively. Adjusted NAV is the Company’s NAV after adding back all
Indian capital gains tax paid or accrued since 1 April 2022 in respect of realised or unrealised gains made on investments. This
adjustment is made because the Company’s benchmark, the MSCI India Index does not take account of Indian Capital Gains Tax.
Share
Year ended 31 March 2025 NAV Adjusted NAV Price
Opening at 1 April 2024 a 819.56p 841.58p 652.00p
Closing at 31 March 2025 b 889.34p 940.32p 756.00p
Price movements c=(b/a)-1 8.5% 11.7% 16.0%
Dividend reinvestment
A
d N/A N/A N/A
Total return c+d +8.5% +11.7% +16.0%
Share
Year ended 31 March 2024 NAV Adjusted NAV Price
Opening at 1 April 2023 a 641.32p 637.97p 512.00p
Closing at 31 March 2024 b 819.56p 841.58p 652.00p
Price movements c=(b/a)-1 27.8% 31.9% 27.3%
Dividend reinvestment
A
d N/A N/A N/A
Total return c+d +27.8% +31.9% +27.3%
Share
Three years ended 31 March 2025 NAV Adjusted NAV Price
Opening at 1 April 2022 a 697.30p 697.30p 562.00p
Closing at 31 March 2025 b 889.34p 940.32p 756.00p
Price movements c=(b/a)-1 +27.5% +34.9% +34.5%
Dividend reinvestment
A
d N/A N/A N/A
Total return c+d +27.5% +34.9% +34.5%
A
NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. Share price total return
involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
Alternative Performance Measures
Continued
abrdn New India Investment Trust plc 85
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
abrdn Fund Managers Limited and the Company are required to make certain disclosures available to investors in
accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). Those disclosures that are required to
be made pre-investment are included within a pre-investment disclosure document (“PIDD”) which can be found on the
Company’s website: abrdnnewindia.co.uk.
There have been no material changes to the disclosures contained within the PIDD since its publication in June 2025.
The periodic disclosures as required under the AIFMD to investors are made below:
· information on the investment strategy, geographic and sector investment focus and principal stock exposures is
included in the Strategic Report;
· none of the Company’s assets are subject to special arrangements arising from their illiquid nature;
· the Strategic Report on pages 6 to 22, Note 17 to the Financial Statements and the PIDD, together set out the risk profile
and risk management systems in place. There have been no changes to the risk management systems in place in the
period under review and no breaches of any of the risk limits set, with no breach expected;
· there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity
management systems and procedures employed by the Manager;
· all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In
accordance with the Remuneration Code, the Manager’s remuneration policy is available from the Company
Secretaries on request (see Additional Shareholder Information) and the remuneration disclosures in respect of the
Manager’s reporting period ended 31 December 2024 are available from its website at: aberdeenplc.com.
Leverage
The table below sets out the current maximum permitted limit and actual level of leverage for the Company.
Gross Method Commitment Method
Maximum level of leverage 2.50:1 2.00:1
Actual level at 31 March 2025 1.14:1 1.15:1
There have been no breaches of the maximum level during the period and no changes to the maximum level of
leverage employed by the Company. There is no right of re-use of collateral or any guarantees granted under the
leveraging arrangement. Changes to the information contained either within this Annual Report or the PIDD in relation to
any special arrangements in place, the maximum level of leverage which the Manager may employ on behalf of the
Company; the right of use of collateral or any guarantee granted under any leveraging arrangement; or any change to
the position in relation to any discharge of liability by the Depositary will be notified via a regulatory news service without
undue delay in accordance with the AIFMD.
The information on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act
2000 (as amended by the Financial Services Act 2012) by abrdn Fund Managers Limited which is authorised and
regulated by the Financial Conduct Authority in the United Kingdom.
Alternative Investment Fund Managers Directive
Disclosures
(
unaudited
)
86 abrdn New India Investment Trust plc
Corporate
Information
The Company’s Investment
Manager is a subsidiary of
Aberdeen Group plc which had
assets under management and
administration of £500.1 billion
at 31 March 2025.
abrdn New India Investment Trust plc 87
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Manager, authorised and regulated by the Financial Conduct Authority, has been appointed as alternative investment
fund manager to the Company. The Manager has delegated portfolio management to the Investment Manager.
The Manager and Investment Manager are subsidiaries of Aberdeen Group plc, a global asset manager with its
headquarters in Edinburgh and operations in financial capitals and important regional centres throughout the world.
Aberdeen managed or administered over £500.1 billion (as at 31 March 2025) in assets for a range of clients, including
individuals and institutions, through mutual and segregated funds.
The Investment Team
James Thom
Senior Investment Director
MBA, Insead; MA, Johns Hopkins University; BSc, University
College, London. Previously with Actis, the emerging
markets private equity firm. Joined the Investment
Manager in 2010.
Rita Tahilramani
Investment Director
PGDBM from NL Dalmia (Mumbai), BE (Computers) from
KJ Somaiya, Mumbai university. Joined the Investment
Manager in 2023 after five years at Invesco Asset
Management (India) as analyst covering the Indian
consumer and industrial sectors.
Pruksa Iamthongthong
Deputy Head of Equities – Asia Pacific
CFA® charterholder, BA in Business Administration,
Chulalongkorn University, Thailand. Joined the
Investment Manager in 2007.
Information about the Investment Mana
g
er
88 abrdn New India Investment Trust plc
The Investment Process
Philosophy and Style
The Investment Manager will not invest in a company
without first having met its management team. Having
invested in a company, the Investment Manager typically
meets the management team twice a year. Over the
years, the Investment Manager's fund managers have
visited many thousands of companies, and more than
1,000 meetings are held annually with companies'
management teams.
Portfolios are managed by the Investment Manager on a
team basis, with individual fund managers doing their own
research and analysis. Each asset class has a model
portfolio that contains the team's best ideas for that asset
class and forms the basis for constructing individual
portfolios focused on that asset class.
The Investment Manager’s investment process
concentrates on a company’s business strategy,
management, financial strength, ownership structure and
corporate governance seeking companies that it can
invest in for the long term. This quality test means that
there are stocks that will not be considered for investment
due to a lack of transparency or poor corporate
governance. The investment process also takes account
of responsible investment, encompassing an assessment
of environmental, social and governance factors.
Risk Controls
The Investment Manager seeks to minimise risk by its in
depth research. Divergence from an index is not seen as
risk – the Investment Manager views, as one example, risk
to be associated with investment in poorly run, expensive
companies that are not fully understood. In fact, where risk
parameters are expressed in index relative terms, asset –
including sector – allocation constitutes a significant
constraint on stock selection. Hence diversification of
stocks provides the Investment Manager’s main control.
Aberdeen’s performance and investment risk unit
independently monitors portfolio positions and reports
monthly. As well as attributing performance it also
produces statistical analysis, which is used by the
Investment Manager primarily to check the portfolio is
behaving as expected, not as a predictive tool.
The Investment Manager believes that a company’s ability
to generate sustainable returns for investors depends on
the management of its environmental impact, its
consideration of the interests of society and stakeholders,
and on the manner in which it is governed. By integrating
sustainability factors in the investment process, the
Investment Manager aims to generate better outcomes
for the Company’s shareholders. The three factors can be
considered as follows:
· Environmental factors relate to how a company
conducts itself with regard to environmental
conservation and sustainability. Types of environmental
risks and opportunities include a company’s energy
consumption, waste disposal, land development and
carbon footprint, among others.
· Social factors pertain to a company’s relationship with its
employees and vendors. Risks and opportunities can
include (but are not limited to) a company’s initiatives on
employee health and well-being, and how supplier
relationships align with corporate values.
· Corporate governance factors can include the
corporate decision-making structure, independence of
board members, the treatment of minority
shareholders, executive compensation and political
contributions, among others.
At the investment stage, sustainability factors and
analysis can help to frame where best to invest by
considering material risks and opportunities alongside
other financial metrics. Due diligence can ascertain
whether such risks are being adequately managed,
and whether the market has understood and priced
them accordingly.
The Investment Manager is an active investor, voting
at shareholder meetings in a deliberate manner,
working with companies to drive positive change, and
engaging with policymakers on sustainability and
stewardship matters.
Continued
Information about the Investment Mana
g
er
abrdn New India Investment Trust plc 89
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Our Engagement Activity
The Investment Manager met with portfolio companies on
32 occasions during the year ended 31 March 2025. This
does not include positions that have been sold or are
under consideration for sale. The following chart depicts
the type of engagements including sustainability and
related topics.
Climate Environment
Labour Management Human Rights & Stakeholders
Corporate Behaviour Corporate Governance
Our Voting Activity
Voting Summary Total
How many meetings were you eligible to vote? 108
How many meetings did you vote at? 108
How many resolutions were you eligible to vote on? 470
What %age of resolutions did you vote on for which
you were eligible?
100.0%
Of the resolutions on which you voted, what %age
did you vote with management?
93.8%
Of the resolutions on which you voted, what %age
did you vote against management?
5.5%
Of the resolutions on which you voted, what %age
did you abstain from voting?
0.6%
In what %age of meetings, for which you did vote,
did you vote at least once against management?
15.7%
Note: the time period referenced in the above table is the year ended 31 March 2025.
90 abrdn New India Investment Trust plc
Investors may receive information about the
Company via email by registering at the foot
of the homepage of the website:
abrdnnewindia.co.uk
The website also includes current and previous Annual
and Half-Yearly Reports, performance data, the latest
monthly factsheet issued by the Manager, together with
links to the Company’s share price and recent London
Stock Exchange announcements.
If you have any general questions about the Company,
the Manager or performance, please send an email to
new.india@aberdeenplc.com or write to:
abrdn New India Investment Trust plc
1 George Street
Edinburgh EH2 2LL
Information about the Company, and other investment
companies managed by Aberdeen, may also be found on
the Aberdeen social media, as follows:
LinkedIn: Aberdeen Investment Trusts; abrdn New India
Investment Trust PLC
X: @AberdeenTrusts
Facebook: Aberdeen Investment Trusts
YouTube: @AberdeenInvestmentTrusts
Alternative Investment Fund Managers
Directive (“AIFMD”) and Pre-Investment
Disclosure Document (“PIDD”)
The Company has appointed the Manager as its
alternative investment fund manager and BNP Paribas
London Branch as its depositary, under the Alternative
Investment Fund Managers Directive (“AIFMD”).
The AIFMD requires the Manager, as the alternative
investment fund manager of abrdn New India Investment
Trust plc, to make available to investors certain
information prior to such investors’ investment in the
Company. Details of the leverage and risk policies which
the Company is required to have in place under AIFMD are
published in the Company’s Pre-Investment Disclosure
Document (“PIDD”) which can be found on its website:
abrdnnewindia.co.uk. The periodic disclosures required to
be made by the Manager under the AIFMD are set out on
page 85.
Benchmark
The Company’s Benchmark is the MSCI India Index
(Sterling-adjusted).
Investor Warning: Be alert to share
fraud and boiler room scams
Aberdeen has been contacted by investors informing us
that they have received telephone calls and emails from
people who have offered to buy their investment
company shares, purporting to work for Aberdeen for
third party firms. Aberdeen has also been notified of
emails claiming that certain investment companies under
our management have issued claims in the courts against
individuals. These may be scams which attempt to gain
your personal information with which to commit identity
fraud or could be ‘boiler room’ scams where a payment
from you is required to release the supposed payment for
your shares. These callers/senders do not work for
Aberdeen and any third party making such offers/claims
has no link with Aberdeen.
Aberdeen does not ‘cold-call’ investors in this way. If you
have any doubt over the veracity of a caller, do not
offer any personal information, end the call and
contact the Company using the details in Additional
Shareholder Information.
The Financial Conduct Authority provides advice with
respect to share fraud and boiler room scams:
fca.org.uk/consumers/scams
Shareholder Enquiries
For queries regarding shareholdings, lost certificates,
dividend payments, registered details and related
matters, shareholders holding their shares directly in the
Company are advised to contact the Registrar,
Computershare Investor Services PLC (see Additional
Shareholder Information). Changes of address must be
notified to the Registrar in writing.
Suitability for Retail/NMPI Status
The Company’s securities are intended for investors
primarily in the UK (including retail investors), professionally-
advised private clients and institutional investors who are
seeking long term capital appreciation from investment in
companies which are incorporated in India or which derive
significant revenue or profit from India, with dividend yield
being of secondary importance, via an investment
company, and who understand and are willing to accept
the risks of exposure to equities within a single emerging
country fund. Investors should consider consulting a
financial adviser who specialises in advising on the
acquisition of shares and other securities before acquiring
shares. Investors should be capable of evaluating the risks
and merits of such an investment and should have sufficient
resources to bear any loss that may result.
Investor Information
abrdn New India Investment Trust plc 91
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Company currently conducts its affairs so that the
securities issued by the Company can be recommended
by a financial adviser to ordinary retail investors in
accordance with the Financial Conduct Authority’s rules in
relation to non-mainstream pooled investments (“NMPIs”)
and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the Financial
Conduct Authority’s restrictions which apply to NMPIs
because they are securities issued by an investment trust.
Key Information Document (“KID”)
UK regulation previously required the Manager to make a
KID available to retail investors prior to them making any
investment decision. On 22 November 2024, new
legislation came into force in the UK which meant that
manufacturers, advisors and sellers of shares in a closed-
ended investment company that is UK-listed are no longer
required to produce the KID.
However, the Manager continues to publish a modified KID
for the Company because a number of platforms/market
participants still require prospective investors to confirm
that they have read the KID prior to a buy order being
placed. The modified KID is available via the Company’s
website. In addition to the KID, the Manager has developed
a Statement of Operating Expenses which is incorporated
into the Company’s factsheet and can also be found on
the Company’s website.
How to Invest in the Company and other
investment trusts managed by Aberdeen
A range of leading investment platforms and share
dealing services let you buy and sell investment trusts
managed by Aberdeen, including the shares of
the Company.
Many of these platforms operate on an ‘execution-only’
basis. This means they can carry out your instruction to
buy or sell a particular investment trust. But they may not
be able to advise on suitable investments for you. If you
require advice, please speak to a qualified financial
adviser (see below).
Flexibility
Many investment platform providers will allow you to buy
and hold abrdn Investment Trust shares within an
Individual Savings Account (ISA), Junior ISA or Self Invested
Personal Pension (SIPP), all of which have potential tax
advantages. Most will also allow you to invest on both a
lump sum and regular savings basis.
Costs and service
It is important to choose the right platform for your needs,
so take time to research what each platform offers before
you make your decision, as well as considering charges.
When it comes to charges, some platforms have flat fee
structures while others levy percentage-based charges.
Typically, you will also pay a fee every time you buy and
sell shares, so you need to bear in mind these transaction
costs if you are trading frequently. There may also be
additional charges for ISA and SIPP investments.
Can I exercise my voting rights if I hold my
shares through an investment platform?
Yes, you should be able to exercise your right to vote by
contacting your platform provider. Procedures differ, but
some platforms will automatically alert you when new
statutory documents are available and then allow you to
vote online. Others will require you to contact them to
vote. Your chosen platform provider will provide
further guidance.
Getting advice
Aberdeen recommends that you seek financial advice
prior to making an investment decision. If you do not
currently have a financial adviser, details of authorised
financial advisers in your area can be found at pimfa.co.uk
or unbiased.co.uk (see below). You will pay a fee for
advisory services.
Platform providers
Platforms featuring the Company, as well as other
Aberdeen-managed investment trusts, include:
· AJ Bell:
www.ajbell.co.uk/markets/investment-trusts
· Barclays Smart Investor:
www.barclays.co.uk/smart-investor
· Charles Stanley Direct:
www.charles-stanley-direct.co.uk
· Fidelity: www.fidelity.co.uk
· Halifax: www.halifax.co.uk/investing
· Hargreaves Lansdown:
www.hl.co.uk/shares/investment-trusts
· interactive investor (owned by Aberdeen):
www.ii.co.uk/investment-trusts
92 abrdn New India Investment Trust plc
The companies above are shown for illustrative purposes
only. Other platform providers are available. The links
above direct you to external websites operated by each
platform provider. Aberdeen is not responsible for the
content and information on these third-party sites, apart
from interactive investor, which is owned by Aberdeen.
Discretionary Private Client Stockbrokers
If you have a large sum to invest, you may wish to contact
a discretionary private client stockbroker. They can
manage your entire portfolio of shares and will advise you
on your investments. To find a private client stockbroker
visit The Personal Investment Management & Financial
Advice Association at: pimfa.co.uk.
Financial Advisers
To find an adviser who recommends on investment trusts,
visit: unbiased.co.uk
Regulation of Stockbrokers
Before approaching a stockbroker, always check that
they are regulated by the Financial Conduct Authority:
Tel: 0800 111 6768 or at
at https://register.fca.org.uk
Email: consumerqueries@fca.org.uk
Note
Please remember that past performance is not a guide to
the future. Stock market and currency movements may
cause the value of shares and the income from them to
fall as well as rise and investors may not get back the
amount they originally invested.
As with all equity investments, the value of investment
trusts purchased will immediately be reduced by the
difference between the buying and selling prices of the
shares, the market maker’s spread.
Investors should further bear in mind that the value of
any tax relief will depend on the individual circumstances
of the investor and that tax rates and reliefs, as well as
the tax treatment of ISAs, may be changed by
future legislation.
The information on pages 90 to 92 has been approved for
the purposes of Section 21 of the Financial Services and
Markets Act 2000 (as amended by the Financial Services
Act 2012) by abrdn Investments Limited which is
authorised and regulated by the Financial
Conduct Authority.
Investor Information
Continued
abrdn New India Investment Trust plc 93
General
94 abrdn New India Investment Trust plc
Notice is hereby given that the Annual General Meeting of abrdn New India Investment Trust plc will be held at the
offices of Aberdeen Group plc at 18 Bishops Square, London E1 6EG at 12.30pm on 23 September 2025 for the
following purposes:
Ordinary Business
As ordinary business to consider and, if thought fit, pass the following Resolutions 1 to 8 inclusive, as Ordinary Resolutions:
1. To receive and adopt the Directors’ and Auditor’s Reports and adopt the Financial Statements for the year ended
31 March 2025.
2. To receive and adopt the Directors’ Remuneration Report for the year ended 31 March 2025 (other than the
Directors’ Remuneration Policy).
3. To elect Irina Miklavchich as a Director of the Company.
4. To re-elect David Simpson as a Director of the Company.
5. To re-elect Andrew Robson as a Director of the Company.
6. To re-elect Rebecca Donaldson as a Director of the Company.
7. To re-elect Michael Hughes as a Director of the Company.
8. To appoint Deloitte LLP as Independent Auditor of the Company and to authorise the Directors to determine their
remuneration for the year to 31 March 2026.
Special Business
As special business to consider and, if thought fit, pass the following Resolutions in the case of Resolutions 9 and 11, as
Ordinary Resolutions and, in the case of Resolutions 10 and 12 as Special Resolutions:
Increase in Limit on Annual Aggregate Directors’ Fees
9. THAT, Article 101 of the Company’s Articles of Association, concerning the limit on the annual aggregate fees
payable to Directors, be amended to substitute “£250,000” for “£200,000”.
Authority to Make Market Purchases of Shares
10. THAT, the Directors of the Company be and are hereby generally and unconditionally authorised in accordance
with Section 701 of the Companies Act 2006 (the “Act”), but without prejudice to the exercise of any such authority
prior to the date of this resolution, to make market purchases (within the meaning of Section 693(4) of the Act) of
Ordinary shares of 25p each in the capital of the Company (“Ordinary shares”), and to cancel or hold these Ordinary
shares in treasury provided that:-
i. the maximum aggregate number of Ordinary shares hereby authorised to be purchased shall be an aggregate
of 6,960,875 Ordinary shares, being 14.99% of the issued Ordinary share capital of the Company (excluding
treasury shares) as at the date of approval of this notice or, if less, the number of shares representing 14.99% of
the total Ordinary shares in issue (excluding treasury shares) as at the date of passing of this resolution;
ii. the minimum price which may be paid for an Ordinary share is 25p (exclusive of expenses);
iii. the maximum price (exclusive of expenses) which may be paid for an Ordinary share shall be not more than the
higher of (i) 5% above the average market values of the shares taken from the Daily Official List of the London
Stock Exchange for the 5 business days before the purchase is made or that stipulated by Article 5(1) of the
Commission Regulation (EC) No. 2273/2003 and, (ii) the higher of the price of the last independent trade and
the highest current independent bid on the trading venue where the purchase is carried out; and
Notice of Annual General Meetin
g
abrdn New India Investment Trust plc 95
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
iv. unless renewed, the authority hereby conferred shall expire at the conclusion of the Annual General Meeting of
the Company in 2026 or on 30 September 2026, whichever is earlier, save that the Company may, prior to such
expiry, enter into a contract to purchase Ordinary shares which will or may be completed or executed wholly or
partly after the expiration of such authority and may make a purchase of Ordinary shares pursuant to any
such contract:
Authority to Allot Shares
11. THAT, in substitution for any existing authority under Section 551 of the Companies Act 2006 (the “Act”), but without
prejudice to the exercise of any such authority prior to the date of this resolution, the Directors be and they are
hereby generally and unconditionally authorised, in accordance with Section 551 of the Companies Act 2006, to
allot equity securities (within the meaning of the Section 551 of the Act) up to an aggregate nominal amount of
£1,160,919 (or if less, the number representing 10% of the Company's issued Ordinary share capital in issue
(excluding treasury shares) as at the date of passing of this resolution) during the period expiring at the conclusion
of the Annual General Meeting of the Company in 2026 or on 30 September 2026, whichever is earlier, but so that
this authority shall allow the Company to make, before the expiry of this authority, offers or agreements which would
or might require relevant securities to be allotted after such expiry and notwithstanding such expiry, the Directors
may allot relevant securities in pursuance of any such offers or agreements.
Disapplication of Pre-emption Rights
12. THAT, subject to the passing of Resolution 11 above (“the Section 551 resolution”) and in substitution for any existing
authority under Sections 570 and 573 of the Companies Act 2006 (the “Act”) but without prejudice to the exercise of
any such authority prior to the date of this resolution, the Directors of the Company be and are hereby generally and
unconditionally authorised in accordance with Sections 570 and 573 of the Act to allot equity securities (within the
meaning of Section 560 of the Act) either pursuant to the Section 551 resolution or by way of a sale of treasury
shares, in each case for cash as if Section 561(1) of the Act did not apply to such allotment, provided that this power
shall be limited to the allotment of equity securities:
i. (otherwise than pursuant to sub-paragraph (ii) below) up to an aggregate nominal amount of £1,160,919 (or, if
less, the number representing 10% of the Company's issued Ordinary share capital, excluding treasury shares,
as at the date of passing of this resolution);
ii. in connection with or the subject of an offer or invitation, open for acceptance for a period fixed by the Directors,
to holders of Ordinary shares and such other equity securities of the Company as the Directors may determine
on the register of members on a fixed record date in proportion (as nearly as may be) to their respective
holdings of such securities, (but subject to such exclusions, limits or restrictions or other arrangements as the
Directors of the Company may consider necessary or appropriate to deal with treasury shares, fractional
entitlements, record dates or legal, regulatory or practical problems in or under the laws of, or requirements of,
any regulatory body or any stock exchange in any territory or otherwise howsoever); and
iii. at a price per Ordinary share which represents a premium to the prevailing NAV per Ordinary share from time
to time (as determined by the Directors and excluding treasury shares).
96 abrdn New India Investment Trust plc
Such power shall expire at the conclusion of the Annual General Meeting of the Company in 2026 or on 30
September 2026, whichever is earlier, but so that this power shall enable the Company to make an offer or
agreement before such expiry which would or might require equity securities to be allotted after such expiry and the
Directors of the Company may allot equity securities in pursuance of any such offer or agreement as if such expiry
had not occurred.
By order of the Board
abrdn Holdings Limited
Company Secretary
Registered Office
280 Bishopsgate
London EC2M 4AG
24 June 2025
Continued
Notice of Annual General Meetin
g
abrdn New India Investment Trust plc 97
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Notes
i. A shareholder entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend,
speak and vote instead of him/her or on his/her behalf at the Meeting. A proxy need not be a shareholder. The
shareholder may appoint more than one proxy, provided that each proxy is appointed to attend, speak and
vote in respect of a different share or shares. If you wish your proxy to speak on your behalf at the meeting, you
will need to appoint your own choice of proxy (not the Chairman of the meeting) and give instructions directly to
them. Appointing a proxy will not prevent a shareholder from attending in person and voting at the meeting. A
proxy form which may be used to make such appointment and give proxy instructions accompanies this notice.
If you do not have a proxy form and believe that you should, or if you would like to appoint more than one proxy,
please contact the Company's Registrars, Computershare Investor Services PLC, on 0370 707 1153. In the case
of joint holders, the vote of the first named in the register of members of the Company who tenders a vote,
whether in person or by proxy, shall be accepted to the exclusion of the votes of other joint holders.
ii. To be valid, the appointment of a proxy, and the original or duly certified copy of the power of attorney or other
authority, if any, under which it is signed or authenticated, should be sent to the Company’s Registrars,
Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY so as to arrive not less
than 48 hours (excluding non-working days) before the time fixed for the Meeting.
iii. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only
those shareholders registered in the register of members of the Company not later than 6.30pm on the date
two days (excluding non-working days) before the time fixed for the meeting (or, if the meeting is adjourned,
registered in the register of members not later than 6.30pm on the date two days (excluding non-working days)
before the time fixed for the adjourned meeting) shall be entitled to attend or vote at the meeting in respect of
the number of Ordinary shares registered in their name at that time. In each case, changes to entries on the
register of members of the Company after that time shall be disregarded in determining the rights of any
person to attend or vote at the meeting.
iv. Any shareholder holding 3% or more of the total voting rights of the Company who appoints a person other than
the Chairman of the meeting as their proxy will need to ensure that both he or she and their proxy comply with
their respective disclosure obligations under the UK Disclosure Guidance and Transparency Rules.
v. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment
service may do so for the meeting and any adjournment(s) thereof by utilising the procedures described in the
CREST Manual. CREST personal members or other CREST sponsored members, and those CREST members
who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service
provider(s), who will be able to take the appropriate action on their behalf.
vi. In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a
“CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear UK & Ireland Limited's
(“EUI”) specifications and must contain the information required for such instructions, as described in the CREST
Manual. The message must be transmitted so as to be received by the issuer's agent (3RA50) no later than 48
hours before the time of the meeting or any adjournment. For this purpose, the time of receipt will be taken to be
the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which
the issuer's agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST.
vii.
CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI
does not make available special procedures in CREST for any particular messages. Normal system timings and
limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the
CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored
member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service
provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the
CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST
sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual
concerning practical limitations of the CREST system and timings.
98 abrdn New India Investment Trust plc
viii. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a)
of the Uncertificated Securities Regulations 2001.
ix. In order to facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the
meeting so that (i) if a corporate shareholder has appointed the Chairman of the meeting as its corporate
representative to vote on a poll in accordance with the directions of all of the other corporate representatives
for that shareholder at the meeting then, on a poll, those corporate representatives will give voting directions to
the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in accordance with
those directions; and (ii) if more than one corporate representative for the same corporate shareholder attends
the meeting but the corporate shareholder has not appointed the Chairman of the meeting as its corporate
representative, a designated corporate representative will be nominated from those corporate representatives
who attend, who will vote on a poll, and the other corporate representatives will give voting directions to that
designated corporate representative. Corporate shareholders are referred to the guidance issued by the
Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (icsa.org.uk), for
further details of this procedure. The guidance includes a sample form of representation letter if the Chairman is
being appointed as described in (i) above.
x. A person to whom this notice is sent who is a person nominated under Section 146 of the Companies Act 2006 to
enjoy information rights (a "Nominated Person") may, under an agreement between him/her and the
shareholder by whom he/she was nominated, have a right to be appointed (or to have someone else
appointed) as a proxy for the Meeting. If a Nominated Person has no such proxy appointment right or does not
wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the shareholder
as to the exercise of voting rights. The statements of the rights of members in relation to the appointment of
proxies in Notes (i) and (ii) above do not apply to a Nominated Person. The rights described in those Notes can
only be exercised by registered members of the Company.
xi. The terms of appointment of the Directors of the Company are available for inspection on any day (except
Saturdays, Sundays and bank holidays) from the date of this notice of until the date of the meeting during usual
business hours at the registered office of the Company and will, on the date of the Meeting, be available for
inspection at the venue of the Meeting for 15 minutes prior to, and at, the Meeting.
xii. Shareholders are advised that, unless otherwise stated, any telephone number, website or email address which
may be set out in this notice of Annual General Meeting or in any related documents (including the proxy form)
is not to be used for the purposes of serving information or documents on, or otherwise communicating with, the
Company for any purposes other than those expressly stated.
xiii. Following the Meeting, the results of the voting at the meeting and the numbers of proxy votes cast for and
against and the number of votes actively withheld in respect of each of the resolutions will be announced via a
Regulatory Information Service and placed on the Company’s website: abrdnnewindia.co.uk
xiv. Further information regarding the meeting is available from: abrdnnewindia.co.uk
xv. Under Section 338 of the Companies Act 2006, members may require the Company to give to members of the
Company entitled to receive this notice of meeting, notice of a resolution which may properly be moved and is
intended to be moved at the meeting. Under Section 338A of that Act, members may request the Company to
include in the business to be dealt with at the meeting any matter (other than a proposed resolution) which may
properly be included in the business.
Notice of Annual General Meetin
g
Continued
abrdn New India Investment Trust plc 99
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
xvi. It is possible that, pursuant to requests made by members of the Company under Section 527 of the Companies
Act 2006, the Company may be required to publish on a website a statement setting out any matter relating to:
(i) the audit of the Company’s accounts (including the auditor’s report and the conduct of the audit) that are to
be laid before the meeting: or (ii) any circumstances connected with an auditor of the Company ceasing to hold
office since the previous meeting at which annual accounts and reports were laid in accordance with Section
437 of the Companies Act 2006. The Company may not require the members requesting any such website
publication to pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the
Company is required to place a statement on a website under Section 527 of the Companies Act 2006, it must
forward the statement to the Company’s auditor not later than the time when it makes the statement available
on the website. The business which may be dealt with at the meeting includes any statement that the Company
has been required under Section 527 of the Companies Act 2006 to publish on a website.
xvii. As at 24 June 2025 (being the last practicable date prior to publication of this notice) the Company’s issued
share capital comprised 46,436,793 Ordinary shares of 25p each with voting rights and 12,633,347 shares in
treasury. Each Ordinary share carries the right to one vote at a general meeting of the Company. Accordingly,
the total number of voting rights in the Company was 46,436,793 as at 24 June 2025.
xviii. If the law or Government guidance so requires at the time of the meeting, the Chairman will limit, in his sole
discretion, the number of individuals in physical attendance at the meeting in order to ensure the safety of those
attending the meeting.
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are
recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under
the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another
appropriately authorised financial adviser. If you have sold or otherwise transferred all your Ordinary shares in abrdn New India Investment Trust plc, please
forward this document, together with any accompanying documents, immediately to the purchaser or transferee, or to the stockbroker, bank or agent
through whom the sale or transfer was effected for onward transmission.
100 abrdn New India Investment Trust plc
Aberdeen Group plc
Aberdeen Group plc or Aberdeen, which is a company
whose shares are admitted to listing on the London
Stock Exchange.
AIC
The Association of Investment Companies.
Alternative Investment Fund Managers
Directive or AIFMD
The Alternative Investment Fund Managers Directive is
European legislation which created a European-wide
framework for regulating managers of alternative
investment funds. It is designed to regulate any fund which
is not a UCITS fund and which is managed and/or
marketed in the EU. The Company has been designated
as an alternative investment fund which is subject to the
Alternative Investment Fund Managers Directive.
Alternative Performance Measures
Alternative performance measures are numerical
measures of the Company’s current, historical or future
performance, financial position or cash flows, other than
financial measures defined or specified in the applicable
financial framework. The Company’s applicable financial
framework includes IFRS and the AIC SORP.
Benchmark
MSCI India Index (sterling adjusted).
Company
abrdn New India Investment Trust plc
Discount
The amount by which the market price per share of an
investment trust is lower than the NAV per share. The
discount is normally expressed as a percentage of the
NAV per share.
Investment Manager
abrdn Asia Limited, a wholly owned subsidiary
of Aberdeen.
Manager
abrdn Fund Managers Limited, a wholly owned subsidiary
of Aberdeen Group plc, has been appointed as the
alternative investment fund manager of the Company.
The Manager is authorised and regulated by the Financial
Conduct Authority.
Leverage
For the purposes of the Alternative Investment Fund
Managers Directive, leverage is any method which
increases the Company’s exposure, including the
borrowing of cash and the use of derivatives. It is
expressed as a ratio between the Company’s exposure
and its NAV and can be calculated on a gross and a
commitment method. Under the gross method, exposure
represents the sum of the Company’s positions after the
deduction of Sterling cash balances, without taking into
account any hedging and netting arrangements. Under
the commitment method, exposure is calculated without
the deduction of Sterling cash balances and after
certain hedging and netting positions are offset
against each other.
Net Asset Value/NAV/Adjusted NAV
The value of total assets less liabilities. Liabilities for this
purpose include current and long-term liabilities. The net
asset value divided by the number of shares presently in
issue produces the basic net asset value per share.
The Adjusted NAV is the Company’s NAV after adding
back all Indian capital gains tax paid or accrued in respect
of realised and unrealised gains made on investments.
Net Gearing/(Cash)
Net gearing/(cash) is calculated by dividing total assets
(as defined below) less cash or cash equivalents by
shareholders’ funds expressed as a percentage. This is in
accordance with the AIC guidance “Gearing Disclosures
post RDR”.
Ongoing Charges
Ratio of expenses as a percentage of average daily
shareholders’ funds calculated as per the AIC’s industry
standard method.
Premium
The amount by which the market price per share of an
investment trust exceeds the NAV per share. The premium
is normally expressed as a percentage of the NAV
per share.
Price/Earnings or PE Ratio
The ratio is calculated by dividing the middle-market price
per share by the earnings per share. The calculation
assumes no change in earnings but in practice the
multiple reflects the stock market’s view of a company’s
prospects and profit growth potential.
Glossary of Terms
abrdn New India Investment Trust plc 101
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
PRIIPs
Packaged retail and insurance-based investment
products marketed to retail investors which are subject to
investment risk.
Prior Charges
The name given to all borrowings including debentures,
loan and short term loans and overdrafts that are to be
used for investment purposes, reciprocal foreign currency
loans, currency facilities to the extent that they are drawn
down, index-linked securities, and all types of preference
or preferred capital and the income shares of split capital
trusts, irrespective of the time until repayment.
Total Assets
Total assets as per the balance sheet less current liabilities
and the deferred tax liability on Indian capital (before
deducting prior charges as defined above).
Total Return
NAV total return involves investing the dividend in the NAV
of the Company on the date on which that dividend goes
ex-dividend. Share price total return involves reinvesting
the dividend in the share price of the Company on the
date on which that dividend goes ex-dividend.
102 abrdn New India Investment Trust plc
abrdn New India Investment Trust plc 103
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
104 abrdn New India Investment Trust plc
abrdn New India Investment Trust plc 1
“India’s growth prospects remain
undiminished. The country benefits from
favourable demographics with a large,
relatively young population and a growing
middle class. Indian corporations are
becoming increasingly sophisticated.”
Michael Hughes, Chairman
“The portfolio delivered robust
performance over the year, with the
strongest returns coming from stock
selection in the energy, financials,
communications services and consumer
discretionary sectors.”
James Thom and Rita Tahilramani
abrdn Asia Limited,
Investment Manager
Scan the QR Code below to be directed to
where you can register for email alerts
relating to the Company:
abrdn New India Investment Trust plc 105
Directors
Michael Hughes (Chairman)
David Simpson (Senior Independent Director)
Andrew Robson (Chairman of the Audit Committee)
Rebecca Donaldson (Chairman of the Management
Engagement Committee)
Irina Miklavchich
Company Secretaries
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Registered Office and Company Number
280 Bishopsgate
London EC2M 4AG
Registered in England & Wales under company
number 02902424
Website
abrdnnewindia.co.uk
LinkedIn: abrdn New India Investment Trust plc
Points of Contact
The Chairman or Company Secretaries at the
Registered Office of the Company.
Email: new.india@aberdeenplc.com
Legal Entity Identifier
549300D2AW66WYEVKF02
United States Internal Revenue Service
FATCA Registration Number (“GIIN”)
U2I09D.99999.SL.826
Alternative Investment Fund Manager
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
Authorised and regulated by the Financial Conduct
Authority
Investment Manager
abrdn Asia Limited
7 Straits View
#23-04 East Tower
Marina One
Singapore 018936
Registrars (for direct shareholders)
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 707 1153
(Lines are open Monday to Friday from 8.30am – 5.30pm,
excluding public holidays in England & Wales. Charges for
‘03’ numbers are determined by the caller’s service
provider. Calls may be recorded and monitored randomly
for security and training purposes.)
Website: uk.computershare.com/investor
E-mail is available via the website
Independent Auditor
KPMG LLP (until 23 September 2025)
15 Canada Square
London E14 5GL
Deloitte LLP (after 23 September 2025)
9 Haymarket Square
Edinburgh EH3 8RY
Depositary
BNP Paribas SA, London Branch
10 Harewood Avenue
London NW1 6AA
Stockbrokers
Winterflood Securities Limited
The Atrium Building
Cannon Bridge
25 Dowgate Hill
London EC4R 2GA
Additional Shareholder Information
abrdnnewindia.co.uk
abrdn New India Investment Trust plc
Annual Report 31 March 2025
Seeking world-class, well governed companies at the heart of India’s growth
For more information visit abrdnnewindia.co.uk
aberdeenplc.com