Annual Report 2016 - invil.muinvil.mu/upload/annual/2016/INVILAnnualReportMarch2016.pdf · Annual Report & Accounts Year Ended 31st March 2016. ... After a very strong 2014/15, last

Annual Report

www.invil.mu

2016

Annual Report & Accounts Year Ended 31st March 2016

INVIL ANNUAL REPORT

INVESTMENT REPORT

Dear Investor

We present the report for India Value Investments Limited (“INVIL”) for the year ended 31 March 2016. The performance of INVIL is summarised below:

Performance

INVIL Net Asset Value (NAV) per share was 810p on 31 March 2016. The INVIL NAV is published daily in the Financial Times under the FT Managed Funds Service section and appears on the INVIL website at www.invil.mu.

INVIL was up 1.3% compared with a decline of 9.4% in the BSE Sensex Index over the twelve month period under review. Since its launch in 1996, INVIL has significantly outperformed the main indices and is up 710% in GBP terms compared to a rise of 273% for the BSE Sensex over the same period.

One Year(1 Apr 2015 to 31 Mar 2016)

Since Launch (22 Apr 1996 to 31 March 2016)

Pound Sterling

InVIL

S&P CNX Nifty

BSE SENSEX

+.3%

-11.3%

-11.8%

+70%

+272%

+273%

Indian rupees

InVIL

S&P CNX Nifty

BSE SENSEX

+4.0%

-8.9%

-9.4%

+382%

+581%

+583%

US Dollars

InVIL

S&P CNX Nifty

BSE SENSEX

-.9%

-14.0%

-14.0%

+665%

+272%

+273%

CONTENTS

INVESTMENT REPORT 1

COMMENTARY OF DIRECTORS 4

CERTIFICATE FROM THE SECRETARY 6

AUDITOR’S REPORT 7

FINANCIAL STATEMENTS 9

2 INVIL ANNUAL REPORT 3INVIL ANNUAL REPORT

INVESTMENT REPORT INVESTMENT REPORT

THe economy

The economy during the year was impacted by a second consecutive failure in monsoons which pulled down agriculture income and rural demand. Despite this, the economy grew at a healthy 7.4%, the highest growth rate among the major economies. The high growth continues to be sustained by the growth in domestic consumption and it was also helped by the steep fall in oil prices.

Looking forward, the implementation of the government’s Seventh Pay Commission for the Civil Servants, which has given large annual pay increases to civil servants and the forecast of a normal monsoon should boost domestic consumption.

The high level of corporate debt amongst the infrastructure firms continues to act as a major impediment on the revival of capital expenditure in private sector. The government has been trying to boost capital expenditure by focusing on roads, railways and power infrastructure. The government has to do this whilst keeping its fiscal deficit under control. The capital expenditure cycle is also expected to be bolstered by foreign direct investment (FDI) which is currently at the highest ever level.

The Indian macro economic situation has remained stable. Inflation has been contained within the Reserve Bank of India limits and the year saw a 1.5% cut in interest rates. The current account and the fiscal deficit numbers have also improved, helped by the steep fall in oil prices. The fiscal deficit has remained within the budgeted levels. We believe that with low levels of debt and low dependence on commodity exports, the Indian economy is positioned favorably amongst the developing economies.

The year under review saw further liberalization in FDI limits, a general improvement in ease of doing business and other reforming legislative progress such as the passing of the bankruptcy bill. The key tax reform change is the Goods and Service Tax (GST) which is expected to be passed in the current year.

During the year, the emerging market currencies witnessed increased volatility whilst the Indian Rupee remained relatively stable.

STock markeT

After a very strong 2014/15, last year was of consolidation for the markets. The major indices were down around 8% during the year. The Consumer and Oil & Gas sectors were amongst the better performing sectors. Real Estate, Capital Goods, Infrastructure and Metals were the worst performers. The small and mid-cap indices fell by 3%, outperforming the major indices. Oil prices fell sharply benefiting the large oil marketing companies. While the year was marked by an improvement across most macroeconomic parameters, corporate earnings growth in aggregate for the market was subdued. However, INVIL’s portfolio companies delivered a strong 20% plus earnings growth in this period.

PorTfoLIo

INVIL’s portfolio stocks delivered an average of 22% earnings growth verses an average of flat earnings growth for the NIFTY companies. The portfolio is characterized by stocks with generally a relatively high

return on capital employed (ROCE) and an expected earnings growth of 20% plus per annum for the next two years. The portfolio has a bias towards large companies with a representation of some high quality names.

oUTLook

The Indian government is making efforts to remove blockages to faster economic growth and the impact of these measures will only be fully seen in future years. With lower global inflation the prospects of interest rates falling further in India are high even if growth accelerates.

Developments such as the outcome of the Seventh Pay Commission, normal monsoons and a passage of the GST bill will improve the future growth outlook. The long-term direction of the market will be determined by the growth in corporate earnings especially given the valuations today are close to long term averages. Corporate earnings may double over a period of four to five years. Operating margins will rise back to long term average levels as financial costs fall and this will lead to better returns for companies which in turn should support stock valuations.

Against a backdrop of an improving macroeconomic outlook and constructive government policy, we expect a revival in earnings growth, especially in sectors like the consumer discretionary, industrials and financials.

We will continue to focus on exceptional businesses with company-specific drivers to deliver above average returns over the long term. We may experience increased volatility depending on the global geopolitical situation. We will continue to hedge the portfolio from time to time in order to cushion against a pull back in the market.

INVIL remains one of the top performing offshore India funds since its launch and we remain very optimistic about the long term outlook for India and INVIL.

We thank you for your investment in INVIL.

The Directors InDIa Value InVesTmenTs lImITeD 25 July 2016

Top 0 Holdings as of 3 march 206

comPany %

Asian Paints Limited 5.6

Bajaj Finance Limited 5.5

HDFC Bank Limited 5.4

Hindustan Petroleum Corporation Limited 5.0

Infosys Ltd 4.7

Sun Pharmaceutical Industries Limited 4.6

Eicher Motors Limited 4.4

Lupin Limited 4.2

GlaxoSmithKline Consumer Healthcare Limited 4.

Dabur India Limited 4.0

ToTaL 47.5


The directors present their report and the audited financial statements of INDIA VALUE INVESTMENTS LIMITED (the “Fund”) for the year ended 31 March 2016.

PrIncIPaL acTIVITy

The principal activity of the Fund is to provide its shareholders with long term capital appreciation of its assets through investment in securities of Indian companies.

The assets are invested principally in equity and equity related instruments.

reSULTS

The results for the year are shown in the statement of profit or loss and other comprehensive income and the related notes.

DIrecTorS

The present membership of the Board is set out under the Fund Information.

STaTemenT of DIrecTorS' reSPonSIBILITIeS In reSPecT of THe fInancIaL STaTemenTS

Company law requires the directors to prepare financial statements for each financial year, which present fairly the financial position, financial performance and cash flows of the Fund. In preparing those financial statements, the directors are required to:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• makejudgementsandestimatesthatarereasonableandprudent;

• state whether applicable accounting standards have been followed, subject to any materialdeparturesdisclosedandexplainedinthefinancialstatements;and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat the Fund will continue in business.

The directors have confirmed that they have complied with the above requirements in preparing the financial statements.

COMMENTARY OF DIRECTORS

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Fund and to enable them to ensure that the financial statements comply with the Mauritian Companies Act 2001. They are also responsible for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

aUDITor

The auditor, Pricewaterhousecoopers, has indicated its willingness to continue in office until the next Annual Meeting.

COMMENTARY OF DIRECTORS


We certify to the best of our knowledge and belief that we have filed with the Registrar all such returns as are required of InDIa VaLUe InVeSTmenTS LImITeD under the Companies Act 2001 during the financial year ended 31 March 2016.

for International financial Services Limited Secretary

Registered Office:IFS Court, Bank StreetTwentyEightCybercity, Ebène 72201Republic of Mauritius Date: 28 June 206

CERTIFICATE FROM THE SECRETARY UNDER SECTION 166 (D) OF THE COMPANIES ACT 2001

INDEPENDENT AUDITOR’S REPORT

To THe memBerS of InDIa VaLUe InVeSTmenTS LImITeD

report on the financial Statements

1. We have audited the financial statements of INDIA VALUE INVESTMENTS LIMITED (the “Fund”) on pages 9 to 38 which comprise the statement of financial position at 31 March 2016 and the statements of profit or loss and other comprehensive income, changes in net assets attributable to holders of redeemable ordinary shares, changes in equity and cash flows for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information.

Directors' responsibility for the financial Statements

2. The Fund’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and in compliance with the requirements of the Mauritian Companies Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

auditor's responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


INDEPENDENT AUDITOR’S REPORT

To THe memBerS of InDIa VaLUe InVeSTmenTS LImITeD (continued)

opinion

6. In our opinion, the financial statements on pages 9 to 38 give a true and fair view of the financial position of the Fund at 31 March 2016 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Mauritian Companies Act 2001.

report on other Legal and regulatory requirements

7. The Mauritian Companies Act 2001 requires that in carrying out our audit we consider and report to you on the following matters. We confirm that:

(a) wehavenorelationshipwithorinterestsintheFundotherthaninourcapacityasauditor;

(b) wehaveobtainedalltheinformationandexplanationswehaverequired;and

(c) in our opinion, proper accounting records have been kept by the Fund as far as appears from our examination of those records.

other matter

8. This report, including the opinion, has been prepared for and only for the Fund’s shareholders, as a body, in accordance with Section 205 of the Mauritian Companies Act 2001 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers

John Li How cheong 28 June 2016Licensed auditor

The notes on pages 13 to 38 form an integral part of these financial statements.

206GBP

205GBP

Income

Dividend income 5,72 91,963

Net change in fair value on financial assets and financial liabilities at fair value through profit or loss (Notes 6, 10) 450,68 7,470,697

Other income 3,87 4,000

Total net income 569,670 7,566,660

eXPenSeS

Licence fees 4,70 4,130

Auditor’s fees 2,075 11,763

Directors’ fees (Note 15) 3,000 2,718

Transaction costs 66,324 53,766

Management fees (Notes 4,15) 74,040 172,096

Performance fees (Notes 4,15) 3,49 1,375,375

Professional fees 60,065 61,099

Custodian fees (Note 4) 22,05 8,516

Other expenses 25,420 13,277

Net foreign currency losses/(gains) 03,583 (31,323)

Total operating expenses 502,20 1,671,417

Profit for the year before taxation 67,469 5,895,243

Income tax expense (Note 5) - -

Increase in net assets attributable to holders ofredeemable ordinary shares 67,469 5,895,243

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 MARCH 2016

0 INVIL ANNUAL REPORT INVIL ANNUAL REPORT


STATEMENT OF FINANCIAL POSITIONAS AT 31 MARCH 2016

The financial statements were approved by the Board of directors on 28 June 2016 and signed on its behalf by:

Shafiiq-Ur-rahmaan Soyfoo Bibi resmah mandary(Director) (Director)

206GBP

205GBP

assets

current assets

Financial assets at fair value through profit or loss (Note 6) 0,02,37 10,629,663

Derivative assets at fair value through profit or loss (Note 10) - 28,512

Prepayments (Note 7) 7,234 7,495

Margin accounts (Note 8) ,45,284 1,622,339

Cash at bank 269,425 2,015,403

Total assets ,740,34 14,303,412

equity

Management shares (Note 11) 00 100

Liabilities

current liabilities

Accounts payable (Note 9) 0,8 1,413,625

Financial liabilities at fair value through profit or loss (Note 10) ,325 -

Liabilities (excluding net assets attributable to holders of redeemable ordinary shares) 03,36 1,413,625

net assets attributable to holders of redeemable ordinary shares ,637,078 12,889,687

Total liabilities ,740,24 14,303,312

Total equity & liabilities ,740,34 14,303,412

Number of redeemable Class A ordinary shares (Note 12) ,426,79 1,591,082

Number of redeemable Class C ordinary shares (Note 12) 9,459 16,510

Net asset value per redeemable Class A ordinary share (Note 13) GBP 8.0 8.01

Net asset value per redeemable Class C ordinary share (Note 13) USD .94 12.16

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE ORDINARY SHARES FOR THE YEAR ENDED 31 MARCH 2016


206number of

shares

206GBP

205number of

shares

205GBP

Net assets attributable to holders of redeemable ordinary shares at 1 April ,607,592 2,889,687 1,797,036 8,389,276

Issue of redeemable ordinary shares - - 39,372 221,000

Redemption of redeemable ordinary shares (7,342) (,320,078) (228,816) (1,615,832)

Increase in net assets attributable to holders of redeemable ordinary shares - 67,469 - 5,895,243

Net assets attributable to holders of redeemable ordinary shares at 31 March ,436,250 ,637,078 1,607,592 12,889,687

206number of

sharesGBP

206Stated capital

GBP

205number of

sharesGBP

205Stated capital

GBP

management shares:

At 1 April and 31 March 00 00 100 100

Total equity 00 00 100 100

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2016


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 MARCH 2016


206GBP

205GBP

cash flows from operating activities

Profit for the year before taxation 67,469 5,895,243

Adjustments for:

Dividend income (5,72) (91,963)

Foreign currency losses/(gains) on cash and cash equivalents 68,24 (25,305)

Net change in fair value of financial assets at fair value through profit or loss (Note 6) 683,26 (6,937,996)

cash flows from/(used in) operating activities before working capital changes 703,547 (1,160,021)

Working capital movements:

Decrease/(increase) in prepayments 26 (1,381)

(Decrease)/increase in accounts payable (,3,84) 1,301,257

Decrease/(increase) in margin accounts 7,055 (852,272)

cash used in operations after working capital changes (436,95) (712,417)

Dividend income received 5,72 91,963

Net (increase)/decrease in financial assets at fair value through profit or loss (65,834) 3,883,411

Net decrease/(increase) in derivative assets at fair value through profit or loss 28,52 (37,489)

Net increase/(decrease) in financial liabilities at fair value through profit or loss ,325 (28,512)

net cash (used in)/from operating activities (357,776) 3,196,956

cash flows from financing activities

Issue of redeemable ordinary shares - 221,000

Redemption of redeemable ordinary shares (,320,078) (1,615,832)

net cash used in financing activities (,320,078) (1,394,832)

net (decrease)/increase in cash and cash equivalents (,677,854) 1,802,124

Cash and cash equivalents at beginning of year 2,05,403 187,974

Foreign currency (losses)/gains on cash and cash equivalents (68,24) 25,305

cash and cash equivalents at end of year 269,425 2,015,403

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2016

GeneraL InformaTIon

INDIA VALUE INVESTMENTS LIMITED (the “Fund”) was incorporated, as a private company limited by shares, under the Companies Act 1984 in the Republic of Mauritius on 28 March 1995. The Fund was converted into a public company and was designated as a limited life company on 16 February 1996. Its investment objective is to achieve long-term capital appreciation through investment in securities of Indian companies.

In accordance with its prospectus dated 29 February 1996, the Fund was to be wound up no later than 31 December 1999 unless its life was extended by shareholders through a special resolution. At its annual general meeting of 4 October 1999, the shareholders passed the necessary resolutions to extend the Fund’s life to 27 March 2145.

The Fund currently offers multiple classes of shares and a weekly valuation facility for shareholders to dispose of their holdings and to allow for new subscriptions in the Fund.

2 SUmmary of SIGnIfIcanT accoUnTInG PoLIcIeS

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Board of directors to exercise its judgement in the process of applying the Fund’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

changes in standards and interpretations

(a) Standardsandamendmentstoexistingstandardseffectiveon1April2015:

There are no standards, interpretations or amendments to existing standards that are effective for the first time for the financial year beginning 1 April 2015 that would be expected to have a material impact on the Fund.



(b) Newstandards,amendmentsandinterpretationseffectiveafter1April2015andhavenotbeenearlyadopted:

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 April 2015, and have not been applied in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Fund.

foreign currency translation

a) Functionalandpresentationcurrency

Items included in the financial statements are measured using the currency of the primary economic environment in which it operates (“the functional currency”). The directors consider the Great Britain Pound (“GBP”) as the currency that most faithfully represents the economic effects of the underlying events, transactions and conditions. The financial statements are presented in GBP which is the functional and presentation currency of the Fund.

b) Transactionsandbalances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transactions. Foreign currency assets and liabilities are translated into the functional currency using the exchange rate prevailing at the reporting date. Foreign exchange gains and losses arising from translation are included in profit or loss. Foreign exchange gains and losses relating to financial assets and financial liabilities carried at fair value through profit or loss are presented in profit or loss within “net change in fair value on financial assets and financial liabilities at fair value through profit or loss”.

Foreign exchange gains and losses relating to cash and cash equivalents are presented in profit or loss within “net foreign currency gains or losses”.

Monetary assets and liabilities expressed in foreign currencies at year end are translated into GBP at the following market rate ruling at the reporting date:

At 31 March 2016, the GBP/INR rate of exchange was 95.0882 (2015 – 92.4591).

financial assets and financial liabilities at fair value through profit or loss

(a) Classification

The Fund classifies its investments in equity securities and derivatives as financial assets and financial liabilities at fair value through profit or loss.

This category has two sub-categories: financial assets or financial liabilities held for trading and those designated by management at fair value through profit or loss at inception.

(i) Financialassetsandliabilitiesheldfortrading

A financial asset or financial liability is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the near-term or if on initial recognition is part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a recent actual pattern of short-term profit making. Derivatives are also categorised as held for trading. The Fund does not classify any derivatives as hedges in a hedging relationship.

(ii) Financialassetsandliabilitiesdesignatedatfairvaluethroughprofitorlossatinception

Financial assets and financial liabilities designated at fair value through profit or loss at inception are financial instruments that are managed, and their performance is evaluated on a fair value basis in accordance with the Fund’s documented investment strategy.

The Fund has categorised its financial assets and financial liabilities at fair value through profit or loss as held for trading. The Fund’s policy is for the Board of directors to evaluate the information about these financial assets and financial liabilities on a fair value basis together with other related financial information.

(b) Recognition,derecognitionandmeasurement

Regular purchases and sales of investments are recognised on the trade date – the date on which the Fund commits to purchase or sell the investments. Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed as incurred in profit or loss.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership.

Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value on the ‘financial assets and financial liabilities at fair value through profit or loss’ category are presented in profit or loss within “net change in fair value on financial assets and financial liabilities at fair value through profit or loss” in the period in which they arise.

Dividend income on financial assets at fair value through profit or loss is recognised in profit or loss within dividend income when the rights to receive payment is established.

(c) Fairvalueestimation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and financial liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the reporting date.



offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Fund or the counterparty.

Due from and due to brokers

Amounts due from and to brokers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the financial position date respectively.

These amounts are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment for amounts due from brokers. A provision for impairment of amounts due from brokers is established when there is objective evidence that the Fund will not be able to collect all amounts due from the relevant broker. Significant financial difficulties of the broker, probability that the broker will enter bankruptcy or financial reorganisation, and default in payments are considered indicators that the amount due from brokers is impaired. Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

accounts receivable

Accounts receivable are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method. cash and cash equivalents

Cash and cash equivalents include cash at bank with financial institutions.

management shares

Management shares are not redeemable, do not participate in the net income or dividends of the Fund and are classified as equity.

accounts payable

Accounts payable are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method.


redeemable ordinary shares

Redeemable ordinary shares are redeemable at the shareholders’ option and are classified as financial liabilities. The redeemable ordinary shares can be put back to the Fund at any time for cash equal to a proportionate share of the Fund’s net asset value attributable to the shareholders. Redeemable ordinary shares are redeemed at prices based on the Fund’s net asset value per share at the time of redemption by dividing the net assets attributable to holders of redeemable ordinary shares by the total number of outstanding redeemable ordinary shares.

Subscription and redemption of redeemable ordinary shares

Subscription

Subscription of redeemable ordinary shares is priced at the net asset value (“NAV”) per redeemable ordinary share plus a charge of 4%.

The charge of 4% on subscriptions is shown in profit or loss under “other income”.

Redemption

Redemption of redeemable ordinary shares is priced at the NAV per redeemable ordinary share on the relevant valuation day. Redemptions are subject to an exit charge. The schedule of charges is as follows:

redemption exit charges levied

Less than one year 2%

One year but less than two years 1%

Two years and above No charge

net asset value

The net asset value per share is calculated by dividing the net assets in the statement of financial position attributable to such class per share by the number of redeemable ordinary shares for each class. In accordance with the Fund’s regulations, investment positions are valued based on the last traded market price for the purpose of determining the net asset value for subscriptions and redemptions.



Transaction costs

Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit orloss. They include fees and commissions paid to agents, advisors, brokers and dealers. Transaction costs, when incurred, are immediately recognised in profit or loss as an expense.

Increase/decrease in net assets attributable to holders of redeemable ordinary shares

Income not distributed is included in net assets attributable to holders of redeemable ordinary shares. Movements in net assets attributable to holders of redeemable ordinary shares are recognised in profit or loss as finance cost.

current and deferred income tax

The current income tax expense is calculated on the basis of tax laws enacted or substantively enacted at the reporting date. The directors periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. They establish provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit may be available against which temporary differences can be utilised.

collateral

Cash collateral provided by the Fund is identified in the statement of financial position as margin account and is not included as a component of cash and cash equivalents. For collateral other than cash, if the party to whom the collateral is provided has the right by contract or custom to sell or re-pledge the collateral, the Fund classifies that asset in its statement of financial position separately from other assets and identifies the asset as pledged collateral.

Where the party to whom the collateral is provided does not have the right to sell or re-pledge, a disclosure of the collateral provided is made in the notes to the financial statements.

3 crITIcaL accoUnTInG eSTImaTeS anD JUDGemenTS

Management makes estimates and judgements concerning the future. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


critical accounting estimates

There are no significant estimates and assumptions made by the Fund for the financial year ended 31 March 2016.

critical judgements

Determination of functional currency

The determination of the functional currency of the Fund is critical since recording of transactions and exchange differences arising therefrom are dependent on the functional currency selected. In making this judgement, the Board of directors evaluates among other factors, the regulatory and competitive environment and the fee and performance reporting structures of the Fund and in particular, the economic environment of its investees. The Board of directors considers the GBP as the currency which most faithfully represents the economic effect of the underlying transactions, events and conditions and it is the currency in which the Fund measures its performance and reports its results.

4 InVeSTmenT aDVISorS, aDmInISTraTor anD cUSToDIan

Investment advisors

The Fund’s Investment Advisor is ASK Investment Managers Private Limited (“ASK”), a company incorporated in India and registered with the Securities and Exchange Board of India.

The Fund’s Strategic Investment Advisor is Strategic Investment Advisor Limited (“SIA”), a company domiciled in the Republic of Mauritius. Two of the Consultants to SIA who are also directors of the Fund, are Messrs Jayesh Manek and Sanjiv Shah.

ASK and SIA receive a share of the management fees and performance fees of the Fund as stated below.

Management fees

Since 22 April 1999, the Fund pays to SIA and ASK a total management fee of 1.5% of Gross Asset value (NAV excluding management fees and performance fees), in an equal proportion.

Performance fees

The method of calculation of performance fees ensures that (i) any performance fee is charged only to those shares which have appreciated in value, (ii) all holders of shares of the same class have the same amount of capital per share at risk in the Fund and (iii) all shares of the same class have the same NAV per share.



The performance fee in respect of each class of share is calculated annually for the period from 1 April to 31 March (a “Calculation Period”). The performance fee is deemed to accrue on a daily basis on each business day but crystallisation of performance fees happen only at year end.

For each Calculation Period, the performance fee in respect of each class of share is equal to 20% of the appreciation in the NAV per share of that class during that Calculation Period above the base NAV per share of that class.

The base NAV per share would be the greater of the NAV per share at the time of issue of that share and the highest NAV per share achieved as at the end of any previous Calculation Period (if any) during which such share was in issue. The performance fee in respect of each Calculation Period would be calculated by reference to the NAV before deduction for any accrued performance fee.

For the year ended 31 March 2016, the performance fees crystallised for Class A amounted to GBP31,419 (2015 – GBP1,362,999) while for Class C there was no crystallised performance fee for the year then ended (2015 – GBP12,376).

administrator

International Financial Services Limited (“IFS”) has been appointed as administrator and secretary to provide various administrative services to the Fund in the Republic of Mauritius.

custodian

Custodian fees

HDFC Bank Ltd is the Fund’s custodian in India. It is paid 20 (2015: 20) basis points of the market value of investments held in the physical segment and 4 (2015: 4) basis points of the market value of investments held in the demat segment, per annum, payable monthly in arrears.

5 TaXaTIon

India

As a tax resident of Mauritius, the Fund expects to obtain benefits under the double taxation treaty between India and Mauritius (“DTAA”). Mauritius has recently signed a Protocol with India, amending the DTAA. The Protocol will be in force once both countries complete necessary formalities. The Protocol provides for capital gains arising on disposal of shares acquired by a Mauritius company on or after 1 April 2017 to be taxed in India. However, investments in shares acquired up to 31 March 2017 will remain exempted from capital gains tax in India irrespective of the date of disposal. In addition, shares acquired as from 1 April 2017 and disposed of by 31 March 2019 will be taxed at a concessionary rate equivalent to 50% of the domestic tax rate prevailing in India provided the Mauritius company meets the prescribed limitation of benefits clause, which includes a minimum expenditure level in Mauritius.



Disposal of investments made by a Mauritius company in Indian financial instruments other than shares (such as limited partnerships, options, futures, warrants, debentures, and other debt instruments) are not impacted by the change and will continue to be exempted from capital gains tax in India.

Dividend distributions are exempt in the hands of shareholders. Companies making distribution are however subject to a flat Dividend Distribution Tax rate of 16.995% of the dividends distributed effective 1 April 2012.

United Kingdom

The Fund had obtained certification as a Reporting Fund in the United Kingdom with effect from 1 April 2010.

Mauritius

The Fund is liable to pay tax in Mauritius on its chargeable income at the rate of 15%. As a holder of a Category 1 Global Business Licence, it is entitled to a credit in respect of foreign tax equivalent to the higher of actual foreign tax suffered or a deemed credit equivalent to 80% of the Mauritius income tax liability on foreign source income. The maximum effective tax rate is 3%.

Gains or profits arising from sale of units or securities are tax-exempt in the hands of the Fund in Mauritius. Dividends and redemption proceeds paid by the Fund to its shareholders do not attract withholding tax.

The foregoing is based on the taxation laws and practices currently in force in Mauritius and may be subject to change.

For the year under review, the Fund had no tax liability (2015: GBPNil). At 31 March 2016, the Fund had accumulated tax losses of GBP243,560 (2015 – GBP486,505) and is therefore not liable to income tax.

206GBP

205GBP

Tax losses b/f (486,505) (542,293)

Chargeable gain for the year 00,987 55,788

Tax loss lapsed 4,958 -

Accumulated tax losses c/f (243,560) (486,505)


The tax losses are available for set off against taxable profit as follows:

Tax reconciliation 206GBP

205GBP

Profit before taxation 67,469 5,895,243

Tax at statutory rate of 15% 0,20 884,286

Exempt income (30,2) (576,129)

Income not subject to tax 249,043 (549,168)

Non allowable expenses ,547 8,065

Expenses related to exempt income 45,558 241,315

Utilisation of tax losses brought forward (5,47) (8,369)

Tax charge - -

year ending: Tax losses Tax losses

206GBP

205GBP

31 March 2015 - 141,958

31 March 2016 - 45,809

31 March 2018 35,34 190,519

31 March 2019 08,29 108,219

243,560 486,505

The actual income tax differs from the theoretical amount that would arise using the applicable income tax rate as follows:

Deferred income tax

Deferred income tax asset has not been recognised in respect of tax losses carried forward as the Board of directors considers that there may not be future taxable profit available, against which the unused tax losses can be utilised. The unrecognised deferred tax asset at 31 March 2016, arising from accumulated tax losses amounted to GBP7,307 (2015 – GBP10,336), calculated at an effective rate of 3%.

6 fInancIaL aSSeTS aT faIr VaLUe THroUGH ProfIT or LoSS

Designated at fair value through profit or loss at inception:

206GBP

205GBP

Fair value at 1 April 0,629,663 7,575,078

Acquisitions during the year 3,4,586 4,114,841

Proceeds from sale during the year (3,048,752) (7,998,252)

Net change in fair value on financial assets at fair value through profit or loss (683,26) 6,937,996

Realised gain on disposal of investments 93,966 3,297,636

Unrealised (depreciation)/appreciation on fair valuation of investments (,597,092) 3,640,360

Fair value at 31 March 0,02,37 10,629,663






As at 31 March, details of the investments of the Fund are as follows:

206 2015

Listed Investments by sector (Inr denominated shares)

market Value GBP

% of net assets

Market Value GBP

% of Net Assets

Banking and financial services ,020,528 8.77 722,916 5.61

Cement and Construction ,06,662 9.5 1,370,498 10.63

Computer Software 550,592 4.73 606,370 4.70

Machinery/Engineering 767,859 6.60 1,282,673 9.95

Finance 635,33 5.46 1,028,710 7.98

Petroleum 584,923 5.03 457,029 3.55

Pharmaceutical ,959,238 6.84 1,858,105 14.42

Auto 98,342 8.43 969,141 7.52

Consumer goods 805,52 6.92 - -

Others ,600,744 3.76 2,334,221 18.11

Total Investments 0,02,37 86.05 10,629,663 82.47

Other Net assets ,624,707 3.95 2,260,024 17.53

Net assets attributable to holders of redeemable ordinary shares ,637,078 00.00 12,889,687 100.00

7 PrePaymenTS

206 GBP

2015 GBP

Professional fees prepaid 920 816

Other prepayments 6,34 6,679

7,234 7,495

8 marGIn accoUnTS

206GBP

2015GBP

Initial Margin account ,77,854 1,297,871

Professional Clearing Member Margin account 273,430 324,468

,45,284 1,622,339

The cash margin deposits were made with HDFC Bank Ltd for trading in the futures and options segment. The margin deposit is utilised in the proportion of 81% as being initial margin and 19% towards the imprest balance for marked to market, volatility margins or intraday margin fluctuations due to change in the exposure value.

The deposit was placed with HDFC Bank Ltd prior to taking a position in the futures and options segment. The deposit made under the margin accounts is only used for a period of outstanding position and it can be withdrawn as soon as the position is liquidated and therefore the funds can be utilised elsewhere.

As at 31 March 2016, the amount held under the initial margin account was Inr2,000,000 (2015 – INR120,000,000) being GBP,77,854 (2015 – GBP1,297,871). The imprest balance (Professional Clearing Member Margin account) as at 31 March 2016 was Inr26,000,000 (2015 – INR30,000,000) being GBP273,430 (2015 – GBP324,468).

9 accoUnTS PayaBLe

206 GBP

2015 GBP

Performance fees payable 3,49 925,299

Management fees payable 44,274 52,984

Professional fees payable 0,460 10,530

Other payables and accruals 5,658 424,812

0,8 1,413,625


0 DerIVaTIVe aSSeTS/fInancIaL LIaBILITIeS aT faIr VaLUe THroUGH ProfIT or LoSS

Futures are contractual obligations to buy or sell financial instruments on a future date at a specified price established inanorganisedmarket. Thefuturescontractsarecollateralisedbycash;changes in futurescontracts’ value are settled daily with the exchange. Futures contracts are transacted in standardised amounts on regulated exchanges and are subject to daily cash margin requirements.

The futures contract is fair valued on a daily basis and any gain/loss on the fair value futures is taken to the statement of profit or loss and other comprehensive income while the corresponding asset/liability is taken to the statement of financial position. As at 31 March 2016, the Fund held 20,000 (2015 – 115,875) exchange traded futures in NIFTY, a derivative which is listed on the National Stock Exchange of India, with a notional value of Inr934,002,000 (GBP9,822,48) (2015 – INR991,600,313 (GBP10,724,745)).

At 31 March 2016, the Fund had financial liabilities of GBP,325 (2015 – derivative assets of GBP28,512).

206 GBP

2015 GBP

(Financial liabilities)/derivative assets at fair value through profit or loss (,325) 28,512

Net change in fair value on derivative assets and financial liabilities at fair value through profit or loss ,33,807 532,701

manaGemenT SHareS Pursuant to its Constitution, the Fund has issued 100 management shares of GBP1 each as part of its share capital.

Management shares carry voting rights in meetings with respect to their class of shares only.

Management shares do not have any right of redemption or to receive distributions.

In case of winding up, the assets available for distribution will be applied to repay the holders of management shares up to the sum equal to the nominal amount paid up on the management shares held by such holders.

2 reDeemaBLe orDInary SHareS Class A and Class C redeemable ordinary shares have been issued with a par value of GBP1 per share and USD1 per share respectively. The total Class A and Class C redeemable ordinary shares issued, fully paid up and outstanding at 31 March 2016 are as follows:

number of shares

Share capital

Class A (denominated in GBP) GBP

At 1 April 2014 1,780,526 1,780,526

Issue of redeemable Class A ordinary shares 39,372 39,372

Redemption of redeemable Class A ordinary shares (228,816) (228,816)

At 31 March 2015 1,591,082 1,591,082

Issue of redeemable class a ordinary shares - -

redemption of redeemable class a ordinary shares (64,29) (64,29)

at 3 march 206 ,426,79 ,426,79

number of shares

Share capital

Class C (denominated in USD) GBP

at april 204 and 3 march 205 16,510 9,687

redemption of redeemable class c ordinary shares (7,051) (4,137)

at 3 march 206 9,459 5,550

Class A and Class C

at 3 march 206 ,436,250 ,432,34

At 31 March 2015 1,607,592 1,600,769




The shares carry rights to dividends. However the Fund has not paid out dividends and does not expect to pay significant dividends in the future. In case of winding up, assets available for distribution will be applied to repay Class A and Class C shareholders up to a sum equal to the respective paid up nominal value. Any balance remaining will be distributed to the ordinary shareholders in proportion to the number of shares held.

3 neT aSSeT VaLUe Per reDeemaBLe orDInary SHare

The net asset value per redeemable Class A ordinary share is calculated by dividing the net assets attributable to holders of redeemable Class A ordinary shares as at 31 March 2016 being GBP,558,269 (2015– GBP12,753,718) by the number of redeemable Class A ordinary shares in issue being ,426,79 (2015 – 1,591,082). At 31 March 2016, the net asset value per redeemable Class A ordinary share is GBP8.0 (2015 – GBP8.01).

The net asset value per redeemable Class C ordinary share is calculated by dividing the net assets attributable to holders of redeemable Class C ordinary shares as at 31 March 2016 being USD2,972 equivalent to GBP78,809 (2015 – USD200,718 equivalent to GBP135,968) by the number of redeemable Class C ordinary shares in issue being 9,459 (2015 –16,510). At 31 March 2016, the net asset value per redeemable Class C ordinary share is USD.94 (2015 – USD12.16).

4 fInancIaL rISk manaGemenT

The Fund’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.

The Fund is also exposed to operational risks such as custodian risk. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the securities held by the custodian, in the event of its failure, the ability of the Fund to transfer securities may be temporarily impaired.

The Fund’s overall risk management programme seeks to maximise the returns derived for the level of risk to which the Fund is exposed and seeks to minimise potential adverse effects on the Fund’s financial performance. The Fund’s policy allows it to use derivative financial instruments to both moderate and create certain risk exposures.

TheFundusesdifferentmethodstomeasureandmanagethevarioustypesofriskstowhichitisexposed;these methods are explained below:

a) market risk

(i) currency risk

The Fund’s assets and liabilities denominated in Indian Rupees (“INR”) are exposed to the risks that the GBP/INR exchange rate may fluctuate and adversely affect the reported values of the Fund. Foreign currency risk as defined in IFRS 7, arises as the value of future transactions, recognised monetary assets and liabilities denominated in other currencies fluctuate due to changes in foreign exchange rates.

The Fund invests in shares denominated in INR as denoted in the currency profile. Consequently, the Fund is exposed to the risk that the exchange rate of the GBP relative to the INR may change in a manner which has a material effect on the reported values of the Fund’s assets that are denominated in INR.

The Fund’s Investment Advisor monitors currency positions on a daily basis and currency exposure on a regular basis.

foreign currency sensitivity analysis

The table below summarises the Fund’s assets and liabilities, monetary and non-monetary, which are denominated in a currency other than the GBP.

206 206 2015 2015

(Amount in GBP) USD Inr USD INR

assets

Monetary assets ,493 ,646,539 1,483 2,311,280

Non – monetary assets - 0,02,37 - 10,658,175

,493 ,658,90 1,483 12,969,455

Liabilities

Monetary liabilities - - - -

Non – monetary liabilities 78,809 5,30 135,968 4,653

78,809 5,30 135,968 4,653





The table below summarises the sensitivity of the Fund’s monetary and non-monetary assets and liabilities to a 0% (2015 – 10%) changes in the GBP against the INR and the USD at 31 March. 0% (2015 – 10%) is used as the sensitivity rate as it represents management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary and non-monetary items and their translation at the year end is adjusted for a 0% (2015 – 10%) change in currency rates.

GBP/USD0% increase

in GBPUSD Impact

206GBP

GBP/USD0% decrease

in GBPUSD Impact

206GBP

GBP/Inr0% increase

in GBPInr Impact

206GBP

GBP/Inr0% decrease

in GBPInr Impact

206GBP

Profit or loss 7,029 (8,59) (,059,48) ,294,844

Net assets attributable to holders of redeemable ordinary shares

7,029 (8,59) (,059,48) ,294,844

2015GBP

2015GBP

2015GBP

2015GBP

Profit or loss (135) 165 (1,178,618) 1,440,534


(135) 165 (1,178,618) 1,440,534

currency profile

The currency profile of the Fund’s financial assets and liabilities is summarised below:

206financial

assetsGBP

206financial liabilities

GBP

2015Financial

assetsGBP

2015Financial liabilities

GBP

Indian Rupee ,658,90 5,30 12,969,455 4,653

United States Dollar ,493 78,809 1,483 135,968

Great Britain Pound 72,677 ,656,095 1,324,979 14,162,691

At 31 March ,733,080 ,740,24 14,295,917 14,303,312


(ii) Interest rate risk

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The majority of the financial assets and liabilities are non-interest bearing. As a result, the Fund is not subject to significant amount of interest rate risk due to fluctuation in the prevailing levels of market interest rates.

(iii) Price risk

The Fund is exposed to equity securities price risk because of investments classified as financial assets at fair value through profit or loss. This arises from investments held by the Fund for which prices in the future are uncertain. Where non-monetary financial instruments – for example, equity securities – are denominated in currencies other than GBP, the price initially expressed in foreign currency and then converted into GBP will also fluctuate because of changes in foreign exchange rates.

Market price risk can be moderated by the Investment Advisor through a disciplined stock selection and investment process. The Investment Advisor monitors the prices of financial instruments held by the Fund on a daily basis, and reviews target prices on equity positions which are set as part of the investment decision process, the macroeconomic viewpoint, size of positions, hedging policy, derivatives, exposure to main thematic risks and overall balance sheet exposure on a regular basis. The Board of directors reviews the investment performance of the Fund regularly.

At 31 March, the fair values of equities and derivative contract exposed to price risk were as follows:

206GBP

2015GBP

Financial assets at fair value through profit or loss 0,02,37 10,629,663

Derivative assets at fair value through profit or loss - 28,512

0,02,37 10,658,175

Financial liabilities at fair value through profit or loss 1,325 - The table summarises the sensitivity of the Fund’s net assets attributable to holders of redeemable ordinary shares to equity price movements, including the effect of movements in foreign currency exchange rates on equity prices at 31 March. The analysis is based on the assumptions that the prices moved by 0% (2015 – 10%), with all other variables held constant. This represents management’s best estimate of a reasonable possible shift in equity prices. The impact on profit and net assets attributable to redeemable ordinary shares would amount to GBP,00,05 (2015 – GBP1,065,818).



0% increase206GBP

0% decrease206GBP

Profit for the year ,00,05 (,00,05)

Net assets attributable to holders of redeemable ordinary shares ,00,05 (,00,05)

10% increase2015GBP

10% decrease2015GBP

Profit for the year 1,065,818 (1,065,818)

Net assets attributable to holders of redeemable ordinary shares 1,065,818 (1,065,818)

b) credit risk

The Fund takes on exposure to credit risk, which is the risk that a counterparty will be unable to pay the amounts in full when due. All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once payment is received by the central clearing counterparty.

With respect to credit risk arising from cash and cash equivalents including margin accounts, the Fund’s exposure to credit risk arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of this financial asset at the financial position date.

The carrying amount of the financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the financial position date is GBP,720,709 (2015 – GBP3,637,742). The bank balances including margin accounts are held with reputable financial institutions, namely Barclays Bank Mauritius Limited and HDFC Bank Ltd.

Accordingly, the Fund has no significant concentration of credit risk.

c) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Fund manages liquidity risk through its ability to close out market positions by maintaining sufficient cash and marketable securities.

The Fund’s listed securities are considered readily realisable, as they are listed on the Indian Stock Exchange.


A maturity analysis for the Fund’s financial liabilities showing the remaining contractual maturities is shown below:

206GBP

2015GBP

Liabilities

Accounts payable Within one year 03,36 1,413,625

Net assets attributable to holders of redeemable ordinary shares With no stated maturity ,637,078 12,889,687

The Fund is exposed to the daily settlement of margin calls on derivative assets and financial liabilities and cash redemption of redeemable ordinary shares at any point in time. It therefore invests the majority of its assets in investments that are traded in an active market and can be readily disposed of. The liquidity position is reviewed on a regular basis by the Investment Advisor.

d) fair value estimation

The carrying amounts of financial assets at fair value through profit or loss, derivative assets at fair value through profit or loss, margin accounts, cash at bank, accounts payable and financial liabilities at fair value through profit or loss approximate their fair values. The last traded price of an active quoted market is used to fair value the financial assets at fair value through profit or loss.

An active market is a market in which transactions for the asset and liability takes place with sufficient frequency and volume to provide pricing information on an ongoing basis.

IFRS 7 requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making measurements. The fair value hierarchy has the following levels:

(i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

(ii) Level 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly.

(iii) Level 3 inputs are unobservable inputs.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.



The determination of what constitutes “observable” requires significant judgement by the Fund. The Fund considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.

The following table analyses within the fair value hierarchy the Fund’s financial assets and financial liabilities measured at fair value:

3 march 206 Level GBP

Level 2GBP

Level 3GBP

Total balanceGBP

financial assets at fair value through profit or loss 0,02,37 - - 0,02,37

financial liabilities at fair value through profit or loss ,325 - - ,325

31 March 2015 Level 1GBP

Level 2GBP

Level 3GBP

Total balanceGBP

Financial assets at fair value through profit or loss 10,629,663 - - 10,629,663

Derivative assets at fair value through profit or loss 28,512 - - 28,512

10,658,175 - - 10,658,175

Financial liabilities at fair value through profit or loss - - - -

Investments, whose values are based on quoted market prices in active markets are therefore classified within level 1.

During the years ended 31 March 2016 and 31 March 2015, there was no transfer between levels.


e) financial instruments by category

Loans and

receivables

assets at fair value through profit or

loss

Loans and

receivables

Assets at fair value

through profit or

loss

206 206 2015 2015

assets as per statement of financial position:

GBP GBP GBP GBP

Financial assets at fair value through profit or loss - 0,02,37 - 10,629,663

Derivative assets at fair value through profit or loss

- - - 28,512

Margin accounts ,45,284 - 1,622,339 -

Cash at bank 269,425 - 2,015,403 -

Total ,720,709 0,02,37 3,637,742 10,658,175

other financial liabilities

Liabilities at fair value

through profit or loss

Other financial liabilities

Liabilities at fair value

through profit or loss

206 206 2015 2015

Liabilities as per statement of financial position:

GBP GBP GBP GBP

Accounts payable 0,8 - 1,413,625 -

Financial liabilities at fair value through profit or loss - ,325 - -


,637,078 - 12,889,687 -

Total ,738,889 ,325 14,303,312 -



f) capital risk management

The capital of the Fund is represented by the net assets attributable to holders of redeemable ordinary shares. The amount of net assets attributable to holders of redeemable ordinary shares can change significantly on a weekly basis as the Fund is subject to subscriptions and redemptions (at the discretion of the shareholders) which are valued on a weekly basis. The Fund’s main purpose is to make portfolio investments in listed securities quoted on the Indian market. The investment portfolio is very well diversified to mitigate investment risks.

The Fund’s objective when managing capital is to safeguard the Fund’s ability to continue as a going concern in order to provide returns for shareholders by achieving and preserving above average long term real capital returns through a policy of investing primarily in quoted securities.

The Fund seeks to achieve this through participating in rising markets whilst following a strategy more suitable for capital preservation when share prices are falling.

In order to maintain or adjust the capital structure, the Fund’s policy is to perform the following:

• Monitorthelevelofweeklysubscriptionsandredemptions.

• RedeemandissuenewsharesinaccordancewiththeconstitutionaldocumentsoftheFund.

5 reLaTeD ParTy TranSacTIonS

During the year ended 31 March 2016, the Fund has entered into various transactions with related parties.

The nature, volume of transactions and balances with the parties are as follows:

name of related party

nature of transaction relationship

Volume of transactions for the year

ended 3 march

206GBP

Volume of transactions for the year

ended 31 March

2015GBP

Balances at3 march

206GBP

Balances at 31 March

2015GBP

ASK Investment Managers Private Limited and Strategic Investment Advisor Limited

Management fees and Performance fees

Investment Advisor and Strategic Investment Advisor 205,459 1,547,471 75,693 978,283

Jayesh Manek Director’s fees Director ,500 1,500 - 750

Sanjiv ShahDirector’s fees Director ,500 1,218 - 750

International Financial Services Limited

Professional fees (including director fees)

Administrator and Secretary 53,627 49,329 9,540 9,714

Directors’ fees charged by the Administrator/Secretary for the year ended are in relation to directorship services rendered by the local directors. However, these fees are not paid to the directors but to the Fund’s Administrator/Secretary.


38 INVIL ANNUAL REPORT

management shares held by related parties

Parties related to the Fund held the following management shares at the reporting date:

206numberclass a

2015NumberClass A

Strategic Investment Advisor Limited:

Management shares held at 31 March 00 100

redeemable class a ordinary shares held by related parties

Mr Sanjiv Shah, one of the directors of the Fund held the following at the reporting date:

206numberclass a

2015NumberClass A

Class A redeemable ordinary shares held at 31 March 37,995 37,995 Mr Sanjiv Shah held the above shares jointly with another shareholder of the Fund.

6 eVenTS afTer rePorTInG DaTe

There are no events after the reporting date which require disclosure in or amendments to these financial statements.


DIRECTORS1

Couldiplall Basanta Lala Jayesh ManekBibi Resmah Mandary Sanjiv ShahShafiiq-Ur-Rahmaan Soyfoo

REGISTERED OFFICEIFS Court, Bank StreetTwentyEightCybercity, Ebène 72201Republic of Mauritius

ADMINISTRATOR & SECRETARYInternational Financial Services LimitedIFS Court, Bank StreetTwentyEightCybercity, Ebène 72201Republic of Mauritius

BANKERBarclays Bank Mauritius Limited3rd floor, Barclays House, 68-69ACybercity, EbèneRepublic of Mauritius

CUSTODIANHDFC Bank LtdCustody and Depository Services Lodha – I Think Techno CampusBuilding – ALPHA, 8th FloorNext to Kanjur Marg Railway StationKanjur Marg (East)Mumbai - 400042India

INDIAN INVESTMENT ADVISORASK Investment Managers Private Limited1st Floor, Bandbox House 254-D Dr. Annie Besant RoadWorli, Mumbai - 400 030India

STRATEGIC INVESTMENT ADVISORStrategic Investment Advisor LimitedIFS Court, Bank StreetTwentyEightCybercity, Ebène 72201Republic of Mauritius

AUDITORPricewaterhouseCoopers18, Cybercity, Ebène, Reduit 72201Republic of Mauritius

Fund Information

1Change in directorship during the year ended 31 March 2016:n Zoubeir Khatib resigned on 4 February 2016n Shafiiq-Ur-Rahmaan Soyfoo appointed on 4 February 2016

Documents

Annual Report 2016 - invil.muinvil.mu/upload/annual/2016/INVILAnnualReportMarch2016.pdf · Annual Report & Accounts Year Ended 31st March 2016. ... After a very strong 2014/15, last