Ashoka India Equity - Annual Financial Report

LEI: 213800KX5ZS1NGAR2J89

 

ASHOKA INDIA EQUITY INVESTMENT TRUST PLC

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2025

Ashoka India Equity Investment Trust plc (the "Company") hereby submits its annual report and financial statements for the year ended 30 June 2025 as required by the Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.1.

 

The Company's annual report and financial statements for the year ended 30 June 2025 is being published in hard copy format and an electronic copy will shortly be available to download from the Company's website at www.ashokaindiaequity.com. It will also be made available to the public at the Company's registered office, 46-48 James Street, London W1U 1EZ.

 

The Company's annual report and financial statements has been uploaded to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

 

Enquiries:

NSM Funds (UK) Limited

ashoka@nsm.group

 

 

HIGHLIGHTS

 

·           The Company has delivered a total NAV return outperforming its benchmark index for the year ended 30 June 2025 by 6.4% delivering -0.2%, compared to -6.6% for the MSCI India IMI.

·           Over a five-year period to 30 June 2025, the Company's NAV increased by 167.8% against the index rise of 123.6% and since launch in July 2018, assets have grown from £46 million to £450 million and the Company was promoted to the FTSE250 Index in June 2025.

·           To capitalise on India's structural growth story, which remains very much intact driven by favourable demographics, digital transformation and manufacturing reforms, the Company is proposing to increase the limit on investment in unquoted companies to 15%.

·           The Investment Adviser believes India is at the cusp of realising its true economic potential with young demographics, superior corporate profitability and megatrends of digitalisation and formalisation emerging as the structural drivers of the India growth story.

·           The Indian market is still relatively under-researched, and opportunities are present across the large, mid and small cap and private company spectrum, placing it as one of the most promising economies over the medium term and making it a highly compelling investment proposition.

 

Investment Objective, Financial Information and Performance Summary

Investment Objective
The investment objective of the Company is to achieve long-term capital appreciation, mainly through investments in securities listed in India and listed securities of companies with a significant presence in India.

Financial information

	As at  30 June 2025		As at  30 June 2024
Net asset value ("NAV") per Ordinary Share (cum income)	278.9p		279.3p
Ordinary Share price	281.5p		284.0p
Ordinary Share price premium to NAV1	0.9%		1.70%
Net assets	£476.2million		£435.4million

 

 

 

Performance summary

	For the	For the
	Year ended	Year ended
	30 June 2025	30 June 2024
	%2,3	%3
Share price total return per Ordinary Share1	-0.9%	35.90%
NAV total return per Ordinary Share1	-0.2%	35.50%
MSCI India Investable Market Index ('IMI') total return (sterling terms)2,3	-6.6%	37.70%

1   These are Alternative Performance Measures.

2   Total returns in sterling for the year ended 30 June 2025 and 2024.

3   Source: Ashoka WhiteOak Capital Pte. Ltd.

Alternative Performance Measures ("APMs")
The disclosures as indicated in the footnote above represent the Company's APMs.

Chairman's Statement

Welcome to the seventh annual results of Ashoka India Equity Investment Trust plc for the year ended 30 June 2025.

First, the very good news. Since launch in July 2018, the Company's assets have grown from c.£46 million to approximately £450 million thanks to a combination of outstanding performance and growth from share issuance. On behalf of the Board, I am pleased to confirm that, as a result, Ashoka India Equity Investment Trust plc was promoted to the FTSE250 Index on 23 June 2025. This is a remarkable achievement and the Board is duly proud of the outstanding and consistent performance of both the Investment Manager and the Investment Adviser and heartily congratulates Prashant Khemka and Ayush Abhijeet, the Company's lead investment managers.

As announced on 5 August 2025, I am delighted to confirm that Hiren Dasani, an experienced, senior investor, has joined Ashoka WhiteOak Capital Partners as Chief Investment Officer of Emerging Markets and will act as co-portfolio manager of this Company alongside Prashant and Ayush with immediate effect.

However, the less good news is for me to be disappointed to write this statement at a period when the geopolitical pressures across the world have not lessened since this time last year. My "heroic assumptions" for a more peaceful world were misplaced; Russia continues to bombard Ukraine in an unrelenting mission to subsume that sovereign nation back into the old Soviet Union and tensions in the Middle East have increased as Israel widens the scope of the conflict. To add to this, the possibility of disruption in global trade as a result of tariffs imposed by President Trump on US imports is a further unwanted distraction. As I have written many times before, these conditions are hardly conducive for investment managers to perform at their best but it does appear that, overall, markets are continuing to take the ceaseless negative newsflow in their stride and show resolute reluctance to go down.

India is a case in point, positioned as it is as a long-term trading ally of Russia whilst, at the same time, pursuing the seemingly unstoppable aim of economic growth, both domestically and abroad. However, in the year under review, the Company's benchmark index, the MSCI India IMI, (in sterling) fell by 6.6% showing that even such a fast-growing economy is not immune from market forces.

Performance
Last year I mentioned that your Board is only too well aware of how impressive performance has been since launch in 2018, both in relative and absolute terms, and spends a fair amount of time wondering about "bumps in the road ahead". It's fair to say that the volatility during the last year caused heads to be scratched but remarkably, given the conditions I have outlined, the investment team has again managed to outperform the benchmark index for the year to 30 June 2025, recording a small negative net asset value (NAV) return of 0.2% in sterling terms, an outperformance of 6.4%.

It is also worth recording that over the five-year period to 30 June 2025, in sterling terms, the Company's NAV increased by 167.8% against the index rise of 123.6%; since launch in 2018, the numbers are 184.6% versus 106.8%, a highly satisfactory result for our long-term shareholders.

As is made clear in the Investment Manager's Report that follows, India is currently exposed to potential US tariffs and affected by a degree of economic uncertainty worldwide. As the US is India's largest export market, it is hoped that the first issue will soon be resolved and that both will have only a short-term impact. However, since the end of the Company's 2025 financial year, both the NAV and share price have weakened a little; as at 6 October 2025, the latest practicable date before publication of this Report, the NAV was 270.5p and the share price 263.0p, a discount of 2.8%.

Share Issuance
As an investment destination for UK-based shareholders, India constitutes a very small percentage of the total, still being considered a single-country, emerging market. To an extent, this status may protect the Company from the worst of short-term trading volatility caused by extraneous events and it also suggests that, on occasional weakness, new investors are attracted to the Company by its impressive performance record and existing shareholders show willingness to increase exposure. As a result, the Company continued to respond to demand and issued new shares at a small premium to the prevailing net asset value. In total, 14,849,496 new shares were issued during the year under review, raising a total of £42.2 million.

Since year end, issuance has continued and, as at the date of this Report, there were 171,491,893 shares in issue.

Revenue and Dividends
The Company's principal objective is to provide returns through long-term capital appreciation, with income being a secondary consideration. Therefore, shareholders should not expect that the Company will pay an annual dividend, under normal circumstances. Whilst the portfolio does generate a small amount of income, this is used to defray running costs. However, the Company has been generating revenue almost by default during the year under review as the portfolio's investee companies distribute available and excess cash to their shareholders. As a result, this will be the first year that the Company pays a dividend in order to comply with rules governing investment trust status. Added to reserves retained in previous years, this dividend amounts to 0.5p per share and will be paid on 31 October 2025 to shareholders on the register as at 10 October 2025. At this early stage, it remains unclear whether this will now become an annual event.

Redemption Facility
The Company has a redemption facility through which shareholders are entitled to request the redemption of all or part of their holding of Ordinary Shares on an annual basis. The Redemption Point for the Ordinary Shares this year is 30 September 2025.

As announced on 4 September 2025, the total number of ordinary shares in respect of which valid redemption requests were received for this Redemption Point was 2,549,082. All of the Ordinary Shares will be redeemed by the Company. All shareholders who validly applied to have shares redeemed will receive a redemption price of 267.19p per share. It is expected that dispatch of payments in respect of the valid redemption requests will be made on or before 13 October 2025.

Performance Fee
Even considering the slightly negative number for the year under review, the Company's investment performance has been outstanding since launch in 2018 and returns from investing in the Company, an actively-managed investment company specialising in Indian equities across the market cap spectrum, have been compelling.

To remind shareholders of the Company's fee arrangements, no annual management fee is paid; the Investment Manager, Acorn Asset Management Ltd, is remunerated solely by means of a performance fee based on the level of performance relative to the Company's benchmark index, the MSCI India IMI, over discrete three-year periods. The first such period ended on 30 June 2021, the second on 30 June 2024 and we are now one third into the measurement period that runs from 1 July 2024 to 30 June 2027. It is for this latest period that a performance fee is being accrued to the Investment Manager and this currently amounts to £16.0 million. Full details of the performance fee can be found in the Directors' Report section of this Annual Report. I remind shareholders that any performance fee is fully accrued in the daily NAV calculation.

For the current year and beyond, a very modest amendment to the Investment Management Agreement has been made. This is purely a technical wording adjustment clarifying the performance fee payment between the Company and the Investment Manager which does not alter the essence of the arrangement and is not considered material.

The Company's portfolio is actively managed and seeks an excess return relative to its benchmark index (known as "alpha"). This investment style may lead to occasional greater volatility than the benchmark index but has produced outstanding returns for shareholders since inception. The Board remains fully supportive of this investment approach and remuneration structure.

OPERATIONAL DEVELOPMENTS AND GOVERNANCE
During the year, we completed the transition of Company Secretary and Administrator responsibilities to NSM Funds (UK) Limited, effective 1 January 2025, thus reuniting with experienced senior personnel who oversaw the launch of this Company in 2018.

The Board has continued to engage with shareholders and undertook an externally-facilitated evaluation in 2025 to ensure we remain committed to maintaining high standards of governance, oversight and accountability.

Annual General Meeting
The Company will hold its Annual General Meeting on 10 December 2025 at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH starting at 11am. An on-line presentation will be given by the Investment Manager and the Board will be delighted to see all shareholders who are able to attend.

Outlook
More of the same only better I think is an appropriate way to describe the future for this Company. Long-term shareholders are only too well aware of the outstanding returns that have been produced and, as global news outlets constantly report and I bang on about at every opportunity, the economic growth prospects for the powerhouse of the Indian economy remain intact even after a relatively lacklustre year compared to recent times.

The threats are well known: geopolitical tensions worsening rather than abating; tariff wars interrupting global trade affecting Indian exports; over-expansion exuberance in the domestic market; China regaining its poise - the list goes on.

What I think has not changed, however, and is unlikely to, is the appetite within India to succeed, both domestically and on the global stage. This extends from Government initiatives through the already-affluent middle classes and on to the burgeoning new entrepreneurial class of business leaders who see the opportunities opening up in front of them and who have available to them a willing, very able and educated workforce. As mentioned before, the vast majority of this intelligent cohort speaks good English, the lingua franca of the global commercial world and an imperative as a tool to escape domestic boundaries. The investable opportunities presenting themselves to our investment management teams continue to grow as India's economy develops and these new enterprises emerge.

India's structural growth story remains very much intact driven by favourable demographics, digital transformation and manufacturing reforms. To fully capitalise on these opportunities, the Company may now invest up to 12% of its gross assets (at the time of investment) in unquoted companies. Following detailed discussions with the Investment Manager, the Board has agreed to a final increase in this limit to 15% of gross assets (at the time of investment), subject to approval by shareholders at this year's AGM. Your Board is wholly supportive of the Investment Manager's proprietary method of approaching investment decisions, of adhering to best-practice corporate governance standards and of finding early access to tomorrow's success stories and firmly believes that allowing the investment teams to have adequate flexibility is likely to yield the best return for shareholders over the longer term.

My optimistic nature remains intact although it has taken a bit of a bruising as the geopolitical situation remains a tinderbox. To compensate, I still find it difficult to imagine a near-future world that doesn't have India as a principal driver of economic growth. President Trump is an acquired taste, of that there is no doubt, but on certain levels it is difficult to argue against his position on the imbalance of global trade over several decades. Whether or not an agreed tariff system will correct this inequality is up for debate but the readiness of most countries to negotiate suggests that it might.

Should I be foolish enough to hope that Trump can also pull off his declared intention of ending two wars? My (uneasy) prediction is that tensions in the Middle East will abate, but never go away completely, and that Putin will fight on. I really hope to open next year's statement with an acknowledgement of how wrong I was on this second point.

As ever, my sincere thanks for being a shareholder in the Company and, to end on a positive note, India remains an extremely attractive destination for investors and I think this is even more so over coming years, possibly decades. The Company has a talented team at the helm, and behind the scenes analysing potential investments, and is, in your Board's view, positioned better than any to exploit investment opportunities as they arise. Ashoka WhiteOak Capital Partners have established deserved reputations in India for being high quality investors and I firmly believe this will translate into continued excellent, long-term returns for our shareholders.

 

ANDREW WATKINS
Chairman
8 October 2025

Investment Manager's Report

Performance Review
During the year ended 30 June 2025, the Company's total NAV return outperformed the benchmark index by 6.4% delivering -0.2%, compared to -6.6% for the MSCI India IMI (in sterling terms)*. Since 31 July 2018 (the date post IPO when the Company was fully invested), the Company has delivered 88.3% of net cumulative outperformance, with a 180.8% absolute return compared to the benchmark return of 92.5%, both in sterling terms. Strong stock selection especially in mid and small caps has been a tailwind.

* Shareholders should note that the MSCI India IMI Index (sterling terms) does not deduct taxes, unlike active and passive funds, such as the Company.

Key contributors & detractors for the year ended 30 June 2025

	Portfolio
	Ending	Portfolio
	Weight	Total Return
Contributors	(%)	(%)*
OneSource Specialty Pharma	4.1	+55.6
Bharti Airtel	4.0	+25.5
Cholamandalam Financial Holdings	1.7	+33.7
	=========	=========
	Portfolio
	Ending	Portfolio
	Weight	Total Return
Detractors	(%)	(%)
Varun Beverages	0.0	-27.2
Tata Consultancy Services	1.8	-17.9
Grindwell Norton	0.3	-43.0
	=========	=========

* Source data: FactSet.

Contributors
OneSource Specialty Pharma Ltd., a specialty-focused Contract Development and Manufacturing Organisation ("CDMO") with capabilities in biologics, complex injectables, and drug-device combinations, outperformed following a strong operating result for the period December 2024 - March 2025, which was also its first profitable quarter since listing. The turnaround was driven by a favourable product mix, operational efficiencies, and successful integration of acquired entities, leading to cross-selling opportunities and cost synergies. The management has outlined a US$100 million capex plan for the new fiscal year while maintaining stronger debt service ability and targeting to become debt-free over the next few years. These developments have also contributed to a rerating of the stock, reflecting investor confidence in the company's growth trajectory.

Bharti Airtel is the leading telecom company in India with presence across wireless, fixed broadband, enterprise and Direct-To-Home TV broadcast services. The company also operates wireless and mobile money operations in several African markets. The company is well-positioned to benefit from improving industry structure and pricing outlook within the Indian wireless market. Execution remains strong across all business lines, underpinned by a disciplined approach to capital allocation and a focus on sustainable returns. Following the recent industry-wide tariff hike, Bharti Airtel has consistently outperformed peers across key operating metrics, reflecting both its high-quality subscriber base and sustained operational excellence.

Cholamandalam Financial Holdings is a holding company owned by the Murugappa Group, with a stake in two fast-growing and well-run businesses: (1) ~44% stake in Cholamandalam Investment and Finance Company ("CIFC") and (2) 60% stake in Chola MS General Insurance. CIFC primarily operates in vehicle finance, home equity, and affordable home loan categories, and its strength lies in its ability to underwrite and collect dues from customers in rural and semi-urban markets, where income streams are relatively less predictable. CIFC's operating performance in recent quarters has been solid, and the company has also made progress in three new lending segments. Cholamandalam Fin. Holdings largely derives its value from CIFC, where the operating performance has been better than the previous year as utilisation rates seem to have bottomed out, and the management guided for an improving trajectory of asset quality. Additionally, the monetary easing by the central bank is expected to reduce the cost of funds and enhance the margin profile for a fixed-rate lender such as CIFC, which has been a key driver of the stock's recent performance.

Detractors
Varun beverages Ltd ("VBL") is one of the largest bottlers for the global brand PepsiCo, with which it has been associated since the 1990s. The company serves as PepsiCo's exclusive bottling partner across most regions in India, accounting for over 90% of the brand's volumes in the country. This scale and long-standing relationship position VBL as a critical strategic partner within PepsiCo's global franchise network. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water, sold under the trademarks owned by PepsiCo. On the back of its strong execution capabilities, extensive infrastructure rollouts, and sustained market development initiatives, Varun Beverages Ltd. (VBL) has significantly expanded PepsiCo's retail presence across India and select international markets. The company's operations now span 14 countries, including India, Sri Lanka, and Nepal in the Indian subcontinent, as well as 11 countries across Africa, underscoring its position as a key growth partner for PepsiCo in emerging markets. Through backward integration the company has also established facilities for production of preforms, crowns, plastic closures, corrugated boxes, and shrink-wrap films to ensure operational efficiencies and high-quality standards. Over the last few years, VBL's energy drink "Sting" has grown exponentially, hence accelerating its growth and margins. However, the stock's underperformance has been most likely on account of slower than expected growth in a few quarters due to early onset of monsoon and rising competitive intensity. 

Tata Consultancy Services ("TCS") is India's largest IT services company. It has a strong global presence especially in key markets of North America and Europe, along with a high-quality customer portfolio. TCS operates across seven major verticals: (a) banking, financial services and insurance, (b) retail & consumer packaged goods, (c) manufacturing, (d) life sciences, (e) hi-tech, (f) telecom, and (g) other niche markets. TCS has proven over long periods of time its ability to execute large multi-service, multi-geo transformation deals across segments like Infrastructure, online applications and Business Process Outsourcing, on the back of its wide set of capabilities. The company has one of the lowest attrition rates in the industry, leading to better preservation of its institutional knowledge. While TCS has the most resilient business models, and one of the best execution engines within the IT services industry globally, the stock underperformed amid a challenging macro environment with demand uncertainty in North America.

Grindwell Norton ("GWN") pioneered the manufacturing of grinding wheels in India in 1941 and became the first majority-owned subsidiary of French major Saint-Gobain in India in 1996. GWN's businesses include abrasives, ceramics, and plastics (including silicon carbide, performance ceramics and refractories, and performance plastics), as well as a captive IT development centre. The company has significantly increased its capital expenditure (capex) over the last three financial years in order to capture market share across segments globally. The stock witnessed a correction on account of weaker-than-expected operating performance in the abrasives segment, driven by intensified competition from imports, along with subdued growth in the ceramics segment arising from both moderating export demand and softer domestic consumption.

Investment Outlook
The calendar year so far has been marked by a volatile global macroeconomic environment, shaped by persistent geopolitical tensions, uneven monetary policy actions across major economies, and fluctuating commodity prices. Adding to these pressures, trade tariff-related uncertainty has disrupted global supply chains and clouded the outlook for cross-border trade, further weighing on business confidence and dampening global growth momentum.

However, amid these global headwinds, economies such as India have continued to display relative resilience. Supported by benign macroeconomic conditions, including moderating inflation and a favourable policy environment, India has been able to sustain one of the strongest growth trajectories among major economies despite the volatile external backdrop.

While India has experienced a cyclical slowdown over the last year, recent high frequency indicators suggest that the deceleration may already be bottoming out. Real GDP growth accelerated to 7.8% in the first quarter of the 2026 financial year (vs. 7.4% in fourth quarter of the 2025 financial year). The expansion was broad-based, with investment gross fixed capital formation growth at 7.8%, private consumption growth at 7.0% and government consumption growth sharply up at 7.4% on a low base in the first quarter of the 2025 financial year due to election-related slowdown in spending. On the positive side, it is likely that the recently announced Goods and Services Tax cuts, the upcoming festive season and strong trends in rural demand will provide a fillip to domestic demand. Moreover, a favourable monsoon season is expected to support rural incomes and consumption, providing an additional tailwind for demand recovery in the coming quarters. From a monetary policy perspective, there is still room for continued easing with inflation expected at 3% for the 2026 financial year end. On balance, India is among the very few economies in the world that possess the full complement of appropriate market conditions backed by pro-reform government policies that aim to deliver sustainable growth over the long term.

Near-term, the imposition of tariffs has understandably generated concerns regarding potential effects on economic growth. Since the beginning of August 2025, President Trump has announced a 25% tariff on India, along with a 25% penalty, which is linked to India's energy trade with Russia. It is likely that this set of tariff announcements is an opening salvo in a trade negotiation process and ultimately tariffs could settle down at more reasonable levels, in-line with those applied to other trading partners (c.15-25%). However, it is worth highlighting that India remains a largely domestically driven economy, with relatively low trade intensity compared to other emerging markets. Exports to the US (US$87 billion in the 2025 financial year) represent approximately 2% of India's GDP. India's principal export categories to the US comprise electronics, gems and jewellery, textiles and pharmaceutical products. At present, both electronics and pharma exports remain exempt from tariffs. Beyond merchandise exports, India's largest export to the US is software services, estimated at c.US$100 billion. Importantly, these remain outside the scope of tariff discussions, as the US continues to run a trade surplus in services. From an equity market perspective, the direct impact of tariffs could be more muted than believed, considering less than 2.0% of MSCI India IMI revenue is subject to tariff risk, in our estimates. That said, a prolonged tariff war involving India represents a key downside risk offsetting some of the gains from policy support and improving domestic consumption.

Amid tariff-related uncertainty, India's strong macroeconomic fundamentals have been reinforced by S&P's recent upgrade of India's sovereign credit rating from 'BBB-' to 'BBB'. This action follows S&P's adjustment of India's outlook to positive in May 2024. The upgrade is attributed to three main factors: improved fiscal management through higher-quality government spending, strong economic growth, and stable monetary policy.

With a workforce of nearly 600 million, the need to create enough high productive jobs to benefit from the demographic dividend would remain India's key challenge in the long term. To boost productivity, the government has undertaken a large number of supply-side measures over the last decade, including (1) labour reforms, (2) reduction in corporate tax rates, (3) bankruptcy reforms, (4) strengthening financial and corporate balance sheets, and, (5) incentives for domestic manufacturing through Production Linked Incentive scheme, among others. These efforts have contributed to a steady rise in manufacturing gross value added, particularly in new-age sectors such as electronics. Continued policy support provides India with strong tailwinds to further scale up manufacturing in multiple sunrise industries, even against the backdrop of near-term tariff-related uncertainties. At the same time, India has also achieved a considerable degree of success in leveraging its skilled workforce to increase its services exports.

India's diversified corporate landscape and steadily improving return ratios reinforce its position as one of the most attractive emerging markets for capturing sustained equity outperformance. Also noteworthy has been the corporate deleveraging and cleaning up of banks' balance sheets with a marked decline in non-performing loans over the last decade. Near-term tariff-related headwinds notwithstanding, Indian manufacturing is poised to play an increasingly important role in global supply chains. Leading multinationals such as Apple and Samsung continue to expand their production footprint in the country, reinforcing India's emergence as a strategic hub within the global manufacturing and supply chain ecosystem. Furthermore, India's services exports - led by IT services and Global Capability Centers ("GCC") - continue to grow steadily, providing a key cushion to the external sector. Moreover, unlike some of its other large EM peers, India's economy is inherently much more consumption-oriented than investment driven, and the thrust of policymaking in recent years has been towards capacity building which is likely to ensure that economic growth is sustainable and broad-based and not propelled by a rise in leverage.

The Investment Adviser believes that India is at the cusp of realising its true economic potential with young demographics, superior corporate profitability and megatrends of digitalisation and formalisation emerging as the structural drivers of the India growth story. Additionally, the most attractive aspect of investing in India is what we see as the outsized alpha opportunity that the market presents compared to any other equity market globally, particularly as the Indian market is still relatively under-researched. Such alpha opportunities are present across the large, mid, and small cap spectrum. All these factors place India as one of the most promising economies over the medium term and make for a highly compelling investment proposition.

Backed by the well-resourced team of the Investment Adviser, Ashoka India Equity Investment Trust plc is well positioned to capitalise, from a bottom-up perspective, on the investment opportunities on offer within the Indian equities space.

ACORN ASSET MANAGEMENT LTD
Investment Manager
8 October 2025

Top Ten Holdings

			Percentage
			of net
		Value	assets
As at 30 June 2025	Sector	(£'000)	(%)
ICICI Bank	Financials	21,020	4.4
Onesource Specialty Pharma	Healthcare	20,885	4.4
Bharti Airtel	Communication Services	20,360	4.3
Bajaj Finserv	Financials	13,760	2.9
Manjushree Technopack	Industrials	13,438	2.8
HDFC Bank	Financials	12,328	2.6
Computer Age Management Services	Industrials	11,823	2.5
Eternal	Consumer Discretionary	11,524	2.4
Info Edge	Communication Services	10,846	2.3
Bharat Electronics	Industrials	10,515	2.2
			---------------
Top ten holdings			30.8
			---------------
Other holdings			70.6
			---------------
Total holdings			101.4
			=========
Capital gains tax provision plus cash and other assets/liabilities			(1.4)
			---------------
Total			100.0
			=========

 

Investment Policy, Results and Key Performance Indicators

INVESTMENT POLICY
The Company shall invest primarily in securities listed on any recognised stock exchange in India and securities of companies with a Significant Presence in India that are listed on stock exchanges outside India. The Company may also invest up to 12% of Gross Assets (calculated at the time of investment) in unquoted companies with a Significant Presence in India.

A company has a "Significant Presence in India" if, at the time of investment, it has its registered office or principal place of business in India, or exercises a material part of its economic activities in India.

The Company shall primarily invest in equities and equity-related securities (including preference shares, convertible unsecured loan stock, rights, warrants and other similar securities). The Company may also, in pursuance of the investment objective:

•      hold publicly traded and privately placed debt instruments (including bonds, notes and debentures);

•      hold cash and cash equivalents including money market liquid/debt mutual funds;

•      hold equity-linked derivative instruments (including options and futures on indices and individual securities);

•      hedge against directional risk using index futures and/or cash;

•      hold participation notes; and

•      invest in index funds, listed funds and exchange traded funds.

Notwithstanding the above, the Company does not intend to utilise derivatives or other financial instruments to take short positions, nor to increase the Company's gearing in excess of the limit set out in the borrowing policy, and any restrictions set out in this investment policy shall apply equally to exposure through derivatives.

The Company will invest no more than 15% of Gross Assets in any single holding or in the securities of any one issuer (calculated at the time of investment) and will typically invest no more than 40%  of Gross Assets in any single sector (calculated at the time of investment).

The Company is not restricted to investing in the constituent companies of any benchmark. It is expected that the Company's portfolio will comprise a minimum of ​50 investments.

In order to comply with the UK Listing Rules, the Company will not invest more than 10% of Gross Assets in other listed closed-ended investment funds, except that this restriction shall not apply to investments in listed closed-ended investment funds which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed-ended investment funds. Additionally, in any event the Company will itself not invest more than 15% of its Gross Assets in other investment companies or investment trusts which are listed on the Official List.

The Company does not expect to take controlling interests in investee companies and will at all times invest and manage the portfolio in a manner consistent with spreading investment risk and in accordance with the FPI Regulations and applicable law.

It is expected that the Company's investments will predominantly be exposed to non-​sterling currencies (principally Indian r​upees) in terms of their revenues and profits. The base currency of the Company is Sterling, which creates a potential currency exposure. Whilst the Company retains the flexibility to do so, it is expected in the normal course that this potential currency exposure will not be hedged using any sort of foreign currency transactions, forward transactions or derivative instruments.

No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution. As stated in the Chairman's Statement, the Board has agreed to a final increase from 12% to 15% in the Company's limit to invest in gross assets (calculated at the time of investment) in unquoted companies with a Significant Presence in India. An ordinary resolution has been put forward for approval by shareholders at this year's AGM.

Borrowing policy
The Company may deploy gearing to seek to enhance long-term capital growth and for the purposes of capital flexibility and efficient portfolio management. The Company may be geared through bank borrowings, the use of derivative instruments that have the effect of gearing the Company's portfolio, and any such other methods as the Board may determine. Gearing will not exceed 20% of Net Asset Value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate.

Asset allocation at year end
The breakdown of the top ten holdings and the industrial classification of the portfolio at the Company's year-end are shown on in the Top Ten Holdings section of this Annual Report.

Dividend policy
The Board intends to manage the Company's affairs to achieve Shareholder returns through capital growth rather than income. Therefore, it should not be expected that the Company will pay an annual dividend.

Regulation 19 of the Investment Trust (Approved Company) (Tax) Regulations 2011 provides that, subject to certain exceptions, an investment trust may not retain more than 15% of its income in respect of each accounting period. Accordingly, the Company may declare an annual dividend from time to time for the purpose of seeking to maintain its status as an investment trust.

Results and dividend
The Company's revenue surplus after tax for the year amounted to £675,000 (30 June 2024: revenue surplus of £308,000). The Company made a capital loss after tax of £1,728,000 (30 June 2024: capital surplus of £96,345,000). Therefore, the total loss after tax for the Company was £1,053,000 (30 June 2024: surplus of £96,653,000).

The Board has declared an interim dividend of 0.5p per Ordinary Share in respect of the year ended 30 June 2025 in accordance with the Company's Dividend policy as outlined in above paragraph.

Key performance indicators
The Board measures the Company's success in attaining its investment objective by reference to the following KPIs:

(i) Achievement of NAV and share price growth over the long term
The Board monitors both the NAV and share price performance and compares them with the MSCI India IMI​ (in sterling terms). A review of performance is undertaken at each quarterly Board meeting and the reasons for relative under and over performance against various comparators is discussed. The Company's NAV and share price total returns for the year to 30 June 2025 were -0.2% and -0.9% (30 June 2024: 35.5% and 35.9%) respectively compared to a total return of -6.6% (30 June 2024: 37.7%) for the MSCI India IMI​ (in sterling terms).

The Chairman's statement incorporates a review of the highlights during the year. The Investment Manager's Report highlights investments made during the year and how performance has been achieved.

(ii) Performance of premium or discount of share price to NAV that is comparable to its peers
Company's Broker monitors the premium or discount on an ongoing basis and keeps the Board updated as and when appropriate. At quarterly Board meetings the Board reviews the premium or discount in the period since the previous meeting in comparison with other investment trusts within the AIC India/Indian Subcontinent sector. The Company has a redemption facility through which Shareholders will be entitled to request the redemption of all or part of their holding of Ordinary Shares on an annual basis. The Company's shares traded at a premium of 0.9% on 30 June 2025 (30 June 2024: premium of 1.7%).

(iii) Maintenance of a comparable level of ongoing charges (excluding performance fee)
The Board receives monthly management accounts which contain an analysis of expenditure, and these are formally reviewed at quarterly Board meetings. The Management Engagement Committee formally reviews the fees payable to the Company's main service providers on an annual basis. The Board reviews the ongoing charges on a quarterly basis and considers these to be reasonable in comparison to other investment trusts within the AIC India/Indian Subcontinent sector.

Based on the Company's average net assets during the year ended 30 June 2025, the Company's ongoing charges figure calculated in accordance with the AIC methodology was 0.2% (30 June 2024: 0.5%).

Risk and Risk Management

Principal and emerging risks and uncertainties

The Board is responsible for the management of risks faced by the Company and delegates the review process of this to the Audit Committee (the "Committee"). The Committee carries out, at least annually, a robust assessment of principal and emerging risks and uncertainties and monitors the risks on an ongoing basis. The last review was carried out in October 2025. The Committee has a dynamic risk register and heat map in place to help identify key risks in the business and oversee the effectiveness of internal controls and processes, providing a visual reflection of the Company's identified principal and emerging risks. The Committee considers both the impact and the probability of each risk occurring and ensures appropriate controls are in place to reduce risk to an acceptable level.

The Board has carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. As part of this assessment, the Committee received updates from the Investment Manager, the Investment Adviser, the Company Secretary and other service providers. The Committee considered a number of emerging risks that could potentially impact the Company's ability to meet its strategic objectives. Risks such as trade tariffs or armed conflicts were considered and not seen as new principal or emerging risks but those that exacerbate existing risks and have been incorporated accordingly in the table below.

The following table provides a summary of the Board's assessment of the Company's principal risks as well as an explanation of how these are being managed or mitigated. The "Trend" column on the right highlights at a glance the Board's assessment of any increases or decreases in risk during the year after mitigation and management. The arrows show the risks as increased, decreased or unchanged.

Description	Mitigation	Trend
Economic, market and geopoltical risks
Changes in general economic and market conditions in India including, for example, interest rates, cost increase, rates of inflation, industry conditions, competition, tax laws, and other factors could substantially and adversely affect the Company's prospects. Weak economic and market conditions in Europe and the US may lead to foreign disinvestment in Indian equities (the "flight to quality"). Political developments globally might materially affect the ability of the Company to achieve its investment objective. Factors such as armed conflicts, sanctions and trade tariffs could impact market volatility and sentiment.	The Investment Adviser has a proven and extensive track record with a focus on good corporate governance and continuously monitor the position and report regularly to the Board on market developments. India is to a degree protected from global economic downdrafts and increases in world inflation as it is a relatively closed economy and not as vulnerable to high and rising energy prices as in the past. In addition, India is not saddled with the debt problems of Europe and the US and the currency should therefore remain stable or appreciate against the currencies of its main trading partners. Whilst not immune from disrupted global trade, including those recently caused by US tariff policies, India may benefit from a change of supply lines from China in particular. The Company does not have any direct or indirect exposure to conflict prone regions in Europe or the Middle East. The Board addresses geopolitical risks through regular challenge of the Investment Adviser and continues to monitor these issues as they arise.	unchanged
Sectoral diversification
Concentration of investments in any one sector may result in greater volatility in the value of the Company's investments and consequently its NAV and may materially and adversely affect the performance of the Company and returns to Shareholders.	The Company's investment policy states that no single holding will represent more than 15% of the Company's Gross Assets and no more than 40% of Gross Assets will be invested in any single sector (calculated at the time of investment). The investment policy allows a minimum of 50 investments to be held in the portfolio to assist with diversification. The Investment Adviser seeks to invest in high quality companies with strong balance sheets and sustainable business models. The Board measures the Company's performance for reference purposes against the MSCI India IMI (in sterling terms). The Board also monitors performance relative to the Company's peer group over a range of periods, taking into account the differing investment policies and objectives.	unchanged
Operational risks
The Board has contractually delegated to external agencies the management of the investment portfolio, the custodial services (which include the safeguarding of the assets), the registration services and the accounting and company secretarial services. The Company is reliant upon the performance of its key third party service providers for its executive function. Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment could have a material adverse effect on the operation of the Company. Cyber security risks could lead to breaches of confidentiality, loss of data records and the inability to make investment decisions. The growing use of artificial intelligence has increased the risk from cyber crime.	Each of the contracts with the Company's key service providers were entered into after full and proper consideration of the quality and cost of services offered, including the financial control systems in operation in so far as they relate to the affairs of the Company. All of the key service providers are subject to ongoing oversight by the Management Engagement Committee and their services are reviewed on an annual basis. The Board monitors key personnel risks as part of its oversight of the Investment Manager and the Investment Adviser and seeks assurance of appropriate succession planning and the adoption of a team based approach to mitigate this risk. The Company's key service providers report periodically to the Board on their control procedures including those in respect of cyber security risks.	unchanged
Regulatory risks
Breaches of Section 1158 of the Corporation Tax Act could result in loss of investment trust status. Loss of investment trust status would lead to the Company being subject to tax on any gains on the disposal of its investments. Breaches of the Financial Conduct Authority ("FCA")'s rules applicable to listed entities could result in financial penalties or suspension of trading of the Company's shares on the London Stock Exchange ("LSE"). Breaches of the Companies Act 2006, The Alternative Investment Fund Managers' Directive, Accounting Standards, The UK Listing Rules, Disclosure Guidance and Transparency Rules, Prospectus Rules or other regulations with which the Company is required to comply could result in financial penalties or legal proceedings against the Company or its Directors. Failure of the Investment Manager to meet its regulatory obligations could have adverse consequences on the Company.	The Company has contracted out relevant services to appropriately qualified professionals. The Investment Manager and the Company Secretary report on regulatory matters to the Board on a quarterly basis. The assessment of regulatory risks forms part of the Board's risk assessment programme. The Board reviews compliance and internal controls reports provided by its service providers, as well as the Company's financial statements and revenue forecasts. Shareholder documents and announcements, including the Company's published half yearly and annual reports and financial statements, are subject to stringent review processes. The Company Secretary presents a quarterly report on changes in the regulatory environment, including AIC updates, and how changes have been addressed.	unchanged
Financial risks
The Company's investment activities expose it to a variety of financial risks which include foreign currency risk and interest rate risk.	The investment policy states that while the Company retains the flexibility to do so, it is expected in the normal course of business that currency exposure will not be hedged. The Company does not currently have any borrowings, therefore is not exposed to interest rate risk. The Company's financial risks are disclosed in note 15 to the financial statements.	unchanged
ESG and Climate Change
The Company could suffer as a result of increased investor demand for products which promote ESG investments. Climate change and climate change policies may lead to additional costs and risks for portfolio companies.	The Investment Adviser considers various factors when evaluating potential investments, including environmental, social and governance ("ESG") and climate change. The Investment Adviser has implemented an ESG Policy which ensures integration of ESG methodology into the investment process, with a strong focus on all these areas. The Investment Adviser is a signatory to the UN Principles for Responsible Investment and integrates these principles into its investment approach. In addition, the Investment Adviser uses its own proprietary internal framework, ABLExTM, for ESG risk assessment. The Investment Adviser closely monitors businesses which have a greater exposure to climate change related risks and their progress towards a low-carbon transition.	unchanged

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable laws and regulations.

The Companies Act 2006 (the "company law") requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Company financial statements in accordance with UK-adopted international accounting standards.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company during and as at the end of the year. In preparing these financial statements, the Directors are required to:

•      select suitable accounting policies and then apply them consistently;

•      make judgements and estimates, which are reasonable and prudent;

•      present information including accounting policies and additional disclosures as required to ensure the report is presented in a manner that provides relevant, reliable, comparable and understandable information;

•      state whether applicable UK-adopted international accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•      prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The accounts are published on the Company's website at https://ashokaindiaequity.com, which is maintained by the Investment Manager. The work carried out by the auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditors accept no responsibility for any changes that have occurred to the accounts since being initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DIRECTORS' CONFIRMATION STATEMENT
The Directors each confirm to the best of their knowledge that:

(a)   the financial statements, prepared in accordance with UK-adopted international accounting standards give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as required by DTR 4.1.12R; and

(b)   this Annual Report comprising the Strategic Report and Governance Statements includes a fair review of the development and performance of the business and position of the Company, together with a description of the principal and emerging risks that it faces as required by DTR 4.1.8R and DTR 4.1.9R.

Having taken advice from the Audit Committee, the Directors consider that the Annual Report and financial statements taken as a whole is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company's performance, business model and strategy.

FOR AND ON BEHALF OF THE BOARD
ANDREW WATKINS
Chairman
8 October 2025

FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME

		For the year ended			For the year ended
		30 June 2025			30 June 2024
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments	4	-	27,199	27,199	-	114,999	114,999
Losses on currency movements		-	(2,204)	(2,204)	-	(3,405)	(3,405)
		---------------	---------------	---------------	---------------	---------------	---------------
Net investment gains		-	24,995	24,995	-	111,594	111,594
Income	5	3,011	-	3,011	2,196	-	2,196
		---------------	---------------	---------------	---------------	---------------	---------------
Total income		3,011	24,995	28,006	2,196	111,594	113,790
Performance fees	7	(957)	(14,997)	(15,954)	(139)	302	163
Operating expenses	8	(1,007)	-	(1,007)	(1,533)	-	(1,533)
		---------------	---------------	---------------	---------------	---------------	---------------
Operating profit before taxation		1,047	9,998	11,045	524	111,896	112,420
Taxation	9	(372)	(11,726)	(12,098)	(216)	(15,551)	(15,767)
		---------------	---------------	---------------	---------------	---------------	---------------
(Loss)/profit for the year		675	(1,728)	(1,053)	308	96,345	96,653
		---------------	---------------	---------------	---------------	---------------	---------------
Earnings per Ordinary Share	10	0.41p	(1.05)p	(0.64)p	0.25p	76.99p	77.24p
		=========	=========	=========	=========	=========	=========

There is no other comprehensive income and therefore the 'Profit/(loss) for the period' is the total comprehensive income for the year ended 30 June 2025.

The total column of the above statement is the profit and loss account of the Company. The supplementary revenue and capital columns, including the earnings per Ordinary Shares, are prepared under guidance from the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

The notes below form an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

		As at	As at
		30 June	30 June
		2025	2024
	Note	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	4	482,867	451,026
		---------------	---------------
Current assets
Cash and cash equivalents		27,374	5,677
Dividend receivable		201	307
Other receivables		110	156
		---------------	---------------
		27,685	6,140
		---------------	---------------
Total assets		510,552	457,166
		=========	=========
Current liabilities
Purchases for future settlement		-	(1,534)
Other payables	6	(349)	(735)
Performance fee payable	7	-	(2,301)
Non-current liabilities
Performance fee payable	7	(15,954)	-
Capital gains tax provision	9	(18,094)	(17,157)
		---------------	---------------
Total liabilities		(34,397)	(21,727)
		=========	=========
Net assets		476,155	435,439
		=========	=========
Equity
Share capital	12	1,720	1,572
Share premium account		248,415	206,794
Special distributable reserve	13	44,276	44,276
Capital reserve		180,753	182,481
Revenue reserve		991	316
		---------------	---------------
Total equity		476,155	435,439
		=========	=========
Net asset value per Ordinary Share	14	278.9p	279.3p
		=========	=========

Approved by the Board of Directors on 8 October 2025 and signed on its behalf by:

ANDREW WATKINS
Director

Ashoka India Equity Investment Trust plc incorporated in England and Wales with registered number 11356069.

The notes below form an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2025

			Share	Special
		Share	premium	distributable	Capital	Revenue
		Capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance as at		1,572	206,794	44,276	182,481	316	435,439
1 July 2024
Profit /(loss) for the year		-	-	-	(1,728)	675	(1,053)
Issue of Ordinary Shares	12	148	42,070	-	-	-	42,218
Share issue costs		-	(449)	-	-	-	(449)
		---------------	---------------	---------------	---------------	---------------	---------------
Closing balance as at
30 June 2025		1,720	248,415	44,276	180,753	991	476,155
		=========	=========	=========	=========	=========	=========

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024

			Share	Special
		Share	premium	distributable	Capital	Revenue
		Capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance as at		1,128	101,003	44,276	86,136	8	232,551
1 July 2023
Profit for the year		-	-	-	96,345	308	96,653
Issue of Ordinary Shares	12	431	107,077	-	-	-	107,508
Share issue costs		-	(1,286)	-	-	-	(1,286)
Management Shares	12	13	-	-	-	-	13
		---------------	---------------	---------------	---------------	---------------	---------------
Closing balance as at
30 June 2024		1,572	206,794	44,276	182,481	316	435,439
		=========	=========	=========	=========	=========	=========

The Company's distributable reserves consist of the special distributable reserve, revenue reserve and capital reserve attributable to realised profit.

The notes below form an integral part of these financial statements.

STATEMENT OF CASH FLOWS

		For the year	For the year
		ended	ended
		30 June 2025	30 June 2024
	Note	£'000	£'000
Cash flows from operating activities
Operating profit before taxation		11,045	112,420
Taxation paid		(11,161)	(6,323)
Decrease/(increase) in receivables		152	(9)
Increase in payables		13,267	52
Adjustment for gains on investments	4	(27,161)	(114,999)
		---------------	---------------
Net cash flow used in operating activities		(13,858)	(8,859)
		---------------	---------------
Cash flows from investing activities
Purchase of investments		(264,317)	(276,302)
Sale of investments		258,103	178,114
		---------------	---------------
Net cash flow used in investing activities		(6,214)	(98,188)
		---------------	---------------
Cash flows from financing activities
Proceeds from issue of Ordinary Shares	12	42,218	107,508
Proceeds from Management Shares issued		-	13
Share issue costs		(449)	(1,286)
		---------------	---------------
Net cash flow from financing activities		41,769	106,235
		---------------	---------------
Increase/(decrease) in cash and cash equivalents		21,697	(812)
		---------------	---------------
Cash and cash equivalents at start of year		5,677	6,489
		---------------	---------------
Cash and cash equivalents at end of year		27,374	5,677
		=========	=========

The notes below form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY
Ashoka India Equity Investment Trust plc is a closed-ended investment company, registered in England and Wales on 11 May 2018. The Company's registered office is 4th Floor 46-48 James Street, London, England, W1U 1EZ. Business operations commenced on 6 July 2018 when the Company's Ordinary Shares were admitted to trading on the LSE. The financial statements of the Company are presented for the year from 1 July 2024 to 30 June 2025.

The Company primarily invests in securities listed on any stock exchange in India and can invest in the securities of companies with a significant presence in India that are listed on stock exchanges outside India.

2. BASIS OF PREPARATION
Statement of compliance
These financial statements have been prepared in accordance with applicable law and the UK-adopted international accounting standards. The financial statements have been prepared on a historical cost basis, except for the measurement at fair value of investments.

When presentational guidance set out in the Statement of Recommended Practice ("SORP") for Investment Companies issued by the Association of Investment Companies ("the AIC") in July 2022 is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.

In preparing these Financial Statements the Directors have considered the impact of climate change risk as a Principal and emerging risk. In line with the UK-adopted international accounting standards, investments are valued at fair value, being primarily quoted prices for investments in active markets at the balance sheet date, and therefore reflect market participant's view of climate change risk. Unlisted investments, valued by reference to appropriate valuation techniques (see note 3), similarly reflect market participants' view of climate change risk.

Going concern
The Directors have concluded that there is a reasonable expectation that the Company will have adequate liquidity and cash balances to meet its liabilities, including those from the Company's annual redemption facility, as they fall due and continue in operational existence for the foreseeable future and continue as a going concern for the period to 31 December 2026. As such the Directors have adopted the going concern basis in preparing the financial statements.

Use of estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The Indian capital gains tax provision represents an estimate of the amount of tax payable by the Company. Tax amounts payable may differ from this provision depending on when the Company disposes of investments. The current provision for Indian capital gains tax is calculated based on the long-term or short-term nature of the investments and the applicable tax rate at the year end. Currently, the short-term tax rate is 20% and the long-term tax rate is 12.5% (30 June 2024: 15% and 10% respectively). The estimated tax charge is subject to regular review including a consideration of the likely period of ownership, tax rates and market valuation movements.

As disclosed in the statement of financial position, the Company made a capital gains tax provision as at 30 June 2025 of £18,094,000 (30 June 2024: £17,157,000) in respect of unrealised gains on investments held.

The key estimate in the financial statements is the determination of the fair value of the unlisted investments by the Investment Manager for consideration by the Directors. This estimate is key as it significantly impacts the valuation of the unlisted investments at the year end. The fair valuation process involves estimation using subjective inputs that are unobservable (for which market data is unavailable). The key inputs considered in the valuation are described in note 15.

Fair value estimates are cross-checked to alternative estimation methods where possible to improve the robustness of the estimates. The risk of an over or under estimation of fair values is greater when methodologies are applied using more subjective inputs.

Basis of measurement
The financial statements have been prepared on the historical cost basis except for financial instruments at fair value through profit or loss, which are measured at fair value.

The Company's investments are denominated in Indian rupees. However, the Company's shares are issued in sterling and the majority of its investors are UK based. The Company's expenses and dividends are also paid in sterling. Therefore, the financial statements are presented in sterling, which is the Company's functional currency. All financial information has been rounded to the nearest thousand pounds.

3. ACCOUNTING POLICIES
(a) Investments

Listed investments
Changes in the fair value of investments held at fair value through profit or loss and gains or losses on disposal are included in the capital column of the Statement of Comprehensive Income within "Gains on investments".

Investments are derecognised on the trade date of their disposal, which is the point where the Company transfers substantially all the risks and rewards of the ownership of the financial asset. Any dividend declared between the disposal trade and settlement date is not attributable to the Company.

Transaction costs directly attributable to the acquisition of investments at fair value through profit or loss are recognised under gains/(losses) on investments.

Unlisted investments
The Investment Manager's unlisted investment valuation policy applies techniques consistent with the IPEV Guidelines.

The techniques applied are predominantly market-based approaches or discounted cash flows where appropriate forecasts can be done. The market-based approaches available under IPEV Guidelines are set out below and are followed by an explanation of how they are applied to the Company's unlisted portfolio:

-     Multiples; and

-     Industry Valuation Benchmarks.

The nature of the unlisted portfolio currently will influence the valuation technique applied. The valuation approach recognises that, as stated in the IPEV Guidelines, the price of a recent investment, if resulting from an orderly transaction, generally represents fair value as at the transaction date and may be an appropriate starting point for estimating fair value at subsequent measurement dates. However, consideration is given to the facts and circumstances as at the subsequent measurement date, including changes in the market or performance of the investee company. Milestone analysis is used where appropriate to incorporate the operational progress of the investee company into the valuation. Additionally, the background to the transaction must be considered. As a result, various Multiples-based techniques are employed to assess the valuations particularly in those companies with established revenues. Discounted cash flows are used where appropriate. An absence of relevant industry peers may preclude the application of the industry valuation benchmarks technique. All valuations are cross-checked for reasonableness by employing relevant alternative techniques.

(b) Foreign currency
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing on the dates of the transactions. At the date of each Statement of Financial Position, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the Statement of Comprehensive Income within the revenue or capital column depending on the nature of the underlying item. Foreign exchange movements on investments are included in the Statement of Comprehensive Income within "Losses on currency movements".

(c) Income from investments
Dividend income from shares is accounted for on the basis of ex-dividend dates. Overseas income is grossed up at the appropriate rate of tax.

Special dividends are assessed on their individual merits and may be credited to the Statement of Comprehensive Income as a capital item if considered to be closely linked to reconstructions of the investee company or other capital transactions. All other investment income is credited to the Statement of Comprehensive Income as a revenue item.

Interest on fixed income instruments is accounted on an accrual basis.

(d) Capital reserves
Profits or losses arising on the sale of investments and changes in fair value arising upon the revaluation of investments are credited or charged to the capital column of the Statement of Comprehensive Income and allocated to the Capital reserve.

The Company's redemption facility is subject to approval by the Board and as such the redemption facility does not represent a contractual obligation on the Company and the shares are accordingly classified as equity.

(e) Expenses
All expenses are accounted for on an accrual basis. Expenses are recognised through the Statement of Comprehensive Income as revenue items. Performance fees payable are allocated in accordance with the AIC guidance where that part of the Performance fee directly attributable to the revenue performance of the Company is allocated to revenue and shown in the revenue column of the Statement of Comprehensive Income, and the part that is directly attributable to the capital performance of the Company's investments is allocated to capital and shown in the capital column of the Statement of Comprehensive Income. For further details on the performance fee, see note 7.

No other management fees are payable by the Company.

(f) Cash and cash equivalents
Cash comprises cash at hand and demand deposits. For purposes of the statement of cash flows, cash equivalents, including bank overdrafts, are short-term, highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risks of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

(g) Taxation
Irrecoverable taxation on dividends is recognised on an accrual's basis in the Statement of Comprehensive Income. Indian tax rates for dividends with ex-dividend dates post 1 April 2020 are subject to 20% withholding tax. See note 9 for further details.

The tax charges on Indian capital gains taxes are shown in the Statement of Comprehensive Income, recognised on an accrual basis. The Company is not subject to UK capital gains tax.

Deferred taxation
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the statement of financial position liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Investment trusts which have approval as such under Section 1158 of the Corporation Tax Act 2010 are not liable for taxation on capital gains.

(h) Adoption of new IFRS standards
A number of new standards, amendments to standards and interpretations are effective for the annual periods beginning on or after 1 January 2024. None of these have a material impact on the measurement of the amounts recognised in the financial statements of the Company.

i) New standards and amendments issued but not yet effective
The relevant new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's financial statements are disclosed below. These standards are not expected to have a material impact on the entity in future reporting periods and on foreseeable future transactions.

Amendments to IAS 21: Lack of Exchangeability
In January 2024, the IASB issued amendments to IAS 21 to provide guidance on determining the exchange rate when there is a lack of exchangeability. These amendments are effective for annual reporting periods beginning on or after 1 January 2025.

Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity
In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to provide guidance on the classification and measurement of contracts referencing nature-dependent electricity. These amendments are effective for annual reporting periods beginning on or after 1 January 2026.

IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024, the IASB published IFRS 18, including new requirements for presentation and disclosure in the financial statements with a focus on the income statement. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its operating profit or loss. IFRS 18 will be effective for annual reporting periods on or after 1 January 2027, with earlier application permitted.

IFRS 19: Subsidiaries without Public Accountability - Disclosures
IFRS 19: Subsidiaries without Public Accountability - Disclosures In April 2024, the IASB issued IFRS 19, which provides disclosure requirements for subsidiaries without public accountability. IFRS 19 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.

Amendments to IFRS 9 and IFRS 7- Amendments to the Classification and Measurement of Financial Instruments
In May 2024, the IASB published Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial instruments. The Amendments will be effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

4. INVESTMENTS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS

(a) Investments held at fair value through profit or loss

	As at	As at
	30 June 2025	30 June 2024
	£'000	£'000
Quoted investments in India	450,591	448,412
Unquoted investments in India	32,276	2,614
	---------------	---------------
Closing valuation	482,867	451,026
	=========	=========

(b) Movements in valuation

	As at	As at
	30 June 2025	30 June 2024
	£'000	£'000
Opening valuation	451,026	236,764
Opening unrealised gains on investments	(121,134)	(56,724)
	---------------	---------------
Opening book cost	329,892	180,040
Additions, at cost	262,282	276,533
Disposals, at cost	(201,150)	(126,681)
	---------------	---------------
Closing book cost	391,024	329,892
Revaluation of investments	91,843	121,134
	---------------	---------------
Closing valuation	482,867	451,026
	=========	=========

Transaction costs on investment purchases for the year ended 30 June 2025 amounted to £501,000 (30 June 2024: £520,000) and on investment sales for the financial year to 30 June 2025 amounted to £384,000 (30 June 2024: £347,000). As at year end £32.7 million (30 June 2024: £27.2 million) of investments were subject to lock in periods.

(c) Gains/(losses) on investments

	For the	For the
	Year ended	Year ended
	30 June 2025	30 June 2024
	£'000	£'000
Realised gains on disposal of investments	57,337	51,433
Transaction costs	(885)	(867)
Movement in unrealised gains on investments held	(29,291)	64,410
Movement in unrealised gains on futures held	38	23
	---------------	---------------
Total gains on investments	27,199	114,999
	=========	=========

Under IFRS 13 'Fair Value Measurement', an entity is required to classify investments using a fair value hierarchy that reflects the significance of the inputs used in making the measurement decision.

The following shows the analysis of financial assets recognised at fair value based on:

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

Level 2
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3
Unobservable inputs for the asset or liability.

The classification of the Company's investments held at fair value is detailed in the table below:

	As at 30 June 2025				As at 30 June 2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Investments at fair value through
profit and loss
- Quoted investments in India	450,591	-	-	450,591	448,412	-	-	448,412
- Unquoted investments in India	-	-	32,276	32,276	-	-	2,614	2,614
	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
	450,591	-	32,276	482,867	448,412	-	2,614	451,026
	=========	=========	=========	=========	=========	=========	=========	=========

The movement on the Level 3 unquoted investments during the period is shown below:

	As at	As at
	30 June 2025	30 June 2024
	£'000	£'000
Opening balance	2,614	3,461
Additions during the year	29,087	-
Disposals during the year	-	(1,569)
Conversion from level 3 to level 1 investments	-	-
Total gains for the year recognised in profit or loss	575	722
Foreign exchange movements	-	-
	---------------	---------------
Closing balance	32,276	2,614
	=========	=========

As at year end, the Company had six unquoted investments; Veeda Clinical Research Ltd 680,790 shares, Simpolo Vitrified Private Ltd 156,000 shares, Ellenbarrie Industrial Gases Ltd 1,426,266 shares, Manjushree Technopack Ltd 9,285,297 shares, Sudeep Pharma Ltd 622,543 shares and Sambhv Steel Tubes Ltd 2,056,600 shares .

Unquoted investments are valued by the Investment Manager in accordance with the International Private Equity and Venture Capital Valuation Guidelines 2022 ("IPEV") guidelines which are consistent with IFRS. The Investment Manager applies techniques consistent with the IPEV.

Financial assets and liabilities are held at fair value in the financial statements with the exception of short-term assets and liabilities where their carrying value approximates to fair value.

5. INCOME

	For the	For the
	year ended	year ended
	30 June 2025	30 June 2024
	£'000	£'000
Income from investments:
Overseas dividends	2,299	1,951
Overseas income - REIT	662	239
Other income:
Bank interest Income	50	6
	---------------	---------------
Total income	3,011	2,196
	=========	=========

6. OTHER PAYABLES

	As at	As at
	30 June 2025	30 June 2024
	£'000	£'000
Accrued expenses	349	735
	---------------	---------------
Total other payables	349	735
	=========	=========

7. PERFORMANCE FEE

		For the year ended 30 June 2025			For the year ended 30 June 2024
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Performance fees expenses		957	14,997	15,954	139	(302)	(163)
		=========	=========	=========	=========	=========	=========

The Investment Manager does not receive a fixed management fee in respect of its portfolio management services to the Company. The Investment Manager will become entitled to a performance fee subject to the Company delivering excess returns versus the MSCI India IMI Index (in sterling terms) in the medium term. The performance fee is measured over periods of three years (Performance Period) with this Performance Period ending on 30 June 2027. The performance fee in any Performance Period shall be capped at 12% of the time weighted average adjusted net assets during the relevant Performance Period. The Investment Management Agreement was updated during the year to clarify that under its terms, the Investment Manager has the optionality to receive the performance fee in cash. However, the Investment Manager has given written confirmation of their intention not to exercise this election and to receive any performance fee in Ordinary Shares.

The performance fee is calculated at a rate of 30% of the excess returns between adjusted NAV per share on the last day of the performance period and the MSCI India IMI Index (in sterling terms) over the performance period, adjusted for the weighted average number of Ordinary Shares in issue during the performance period. The Performance Fee in respect of each Performance Period will be paid at the end of the three year period.

The performance fee is allocated in accordance with the AIC guidance where that part of the Performance fee directly attributable to the revenue performance of the Company (6%) is allocated to revenue and shown in the revenue column of the Statement of Comprehensive Income, and the part that is directly attributable to the capital performance of the Company's investments (94%) is allocated to capital and shown in the capital column of the Statement of Comprehensive Income.

As at 30 June 2025, there was a £15,954,000 provision for the performance fee liability to the Investment Manager for the one year performance period (30 June 2024: £2,301,000 for the previous full three year period).

8. OPERATING EXPENSES

	For the	For the
	year ended	year ended
	30 June 2025	30 June 2024
	£'000	£'000
Administration & secretarial fees	298	232
Auditor's remuneration - Statutory audit fee*	75	60
Broker fees	41	40
Custody services	95	48
Directors' fees	152	128
Tax compliance and advice	61	119
Marketing and public relations	58	497
Registrar fees	26	37
Legal Fees	59	133
Regulatory fees	35	18
Other expenses**	107	221
	---------------	---------------
Total	1,007	1,533
	=========	=========

*           Auditor's remuneration excludes VAT.

**          Other expenses include Employers National Insurance Contribution, LSE, KID fees, Distribution fees, other license fees, bank charges and other miscellaneous fees.

9. TAXATION
(a) Analysis of charge in the year:

		For the year ended 30 June 2025			For the year ended 30 June 2024
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Capital gains tax provision		-	937	937	-	9,444	9,444
Capital gains expense		-	10,789	10,789	-	6,107	6,107
Indian withholding tax		372	-	372	216	-	216
		---------------	---------------	---------------	---------------	---------------	---------------
Total tax charge for the year		372	11,726	12,098	216	15,551	15,767
		=========	=========	=========	=========	=========	=========

The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Tax Act 1961. A tax provision on Indian capital gains is calculated based on the long term (securities held more than one year) or short term (securities held less than one year) nature of the investments and the applicable tax rate at the period end. The short-term tax rates are 20% and the long term tax rates are 12.5% (30 June 2024: 15% and 10% respectively).

(b) Factors affecting the tax charge for the year:
The standard UK corporation tax rate as at the period is 25% (30 June 2024: 25%). The tax charge differs from the charge resulting from applying the standard rate of UK corporation tax for an investment trust company. The differences are explained below:

	For the	For the
	Year ended	Year ended
	30 June 2025	30 June 2024
	£'000	£'000
Operating profit before taxation	11,045	112,420
UK Corporation tax at 25% (2024: 25%)	2,761	28,105
Effects of:
Indian capital gains tax charge	11,726	15,551
Gains on investments not taxable	(6,249)	(27,899)
Overseas dividends not taxable	(740)	(548)
Other income not taxable	(12)	(2)
Unutilised management expenses	4,240	344
Indian withholding tax	372	216
	---------------	---------------
Total tax charge for the year	12,098	15,767
	=========	=========

The Company is not liable to UK Corporation tax on capital gains due to its status as an investment trust. The Company has an unrecognised deferred UK Corporation tax asset of £8,034,000 (30 June 2024: £3,806,000) based on the UK corporation tax rate of 25% (2024: 25%). This asset has accumulated because deductible expenses exceeded taxable income for the year ended 30 June 2025. No asset has been recognised in the accounts because, given the composition of the Company's portfolio, it is unlikely that this asset will be utilised in the foreseeable future.

(c) Movements on the capital gains tax provision for the year
The capital gains tax provision represents an estimate of the amount of tax provisionally payable by the Company on direct investment in Indian equities. It is calculated based on the long term or short term nature of the investments and the unrealised gain thereon at the applicable tax rate at the year end. As of 30 June 2025, the Company made a capital gains tax provision of £18,094,000 (30 June 2024: £17,157,000) in respect of unrealised gains on investments held.

10. EARNINGS PER ORDINARY SHARE

		For the year ended 30 June 2025			For the year ended 30 June 2024
		Revenue	Capital	Total	Revenue	Capital	Total
(Loss)/Profit for the year (£'000)		675	(1,728)	(1,053)	308	96,345	96,653
Earnings per Ordinary Share		0.41p	(1.05)p	(0.64)p	0.25p	76.99p	77.24p
		=========	=========	=========	=========	=========	=========

Earnings per Ordinary Share is based on the loss for the year of £1,053,000 (30 June 2024: profit £96,653,000) attributable to the weighted average number of Ordinary Shares in issue during the year ended 30 June 2025 of 164,187,886 (30 June 2024: 125,146,964).

11. DIVIDEND
(a) Dividends paid during the year
The Company's objective is to provide shareholder returns through capital growth with income being a secondary consideration. It should not be expected that the Company will pay a significant annual dividend, but the Board intends to declare such annual dividends as are necessary to maintain the Company's UK investment trust status. The Board has declared a dividend of 0.5p per Ordinary Share in respect of the year ended 30 June 2025 in accordance with the Company's Dividend policy. No dividends were paid during the year to 30 June 2025 (2024: nil).

(b) Dividends payable in respect of the financial year, which is the basis on which the requirements of s1158-1159 of the Corporation Tax Act 2010 are considered

	For the year ended		For the year ended
	30 June 2025		30 June 2024
	Rate	£'000	Rate	£'000
Proposed dividend for the year	0.5p	857	-	-
	==========	==========	==========	==========

12. SHARE CAPITAL

	As at 30 June 2025		As at 30 June 2024
	No. of shares	£'000	No. of shares	£'000
Allotted, issued and fully paid:
Redeemable Ordinary Shares of 1p each ('Ordinary Shares')	170,741,893	1,707	155,892,397	1,559
	----------------	----------------	----------------	----------------
Non-Redeemable Shares of £1.00 each ('Management Shares')	50,000	13	50,000	13
	----------------	----------------	----------------	----------------
Total	170,791,893	1,720	155,942,397	1,572
	==========	==========	==========	==========

Ordinary Shares
On incorporation, the issued share capital of the Company was 1 Ordinary Share of £0.01.

During the year ended 30 June 2025, 14,849,496 Ordinary Shares (30 June 2024: 43,084,585) were issued, with aggregate gross proceeds of £42,218,000 (30 June 2024: £107,508,000).

Since the year end, a further 750,000 Ordinary Shares have been issued, with aggregate gross proceeds of £2,143,950. As at the date of this report, the total number of Ordinary Shares in issue is 171, 491, 893 (30 June 2024: 155,892,397).

The Ordinary Shares have attached to them full voting, dividend and capital distribution rights. They confer rights of redemption. The Company's special distributable reserve may also be used for share repurchases, both into treasury or for cancellation.

Management shares
In addition to the above, on incorporation the Company issued 50,000 Management Shares of nominal value of £1.00 each.

The holder of the Management Shares undertook to pay or procure payment of one quarter of the nominal value of each Management share on or before the fifth anniversary of the date of issue of the Management Shares. During the year, the Management Shares were transferred to WhiteOak Capital Management (UK) Limited having previously been held by an associate of the Investment Manager.

The Management Shares do not carry a right to attend or vote at general meetings of the Company unless no other shares are in issue at that time. The Management Shares have been treated as equity in accordance with IFRS.

13. SPECIAL DISTRIBUTABLE RESERVE
As indicated in the Company's prospectus dated 19 June 2018, following admission of the Company's Ordinary Shares to trading on the LSE, the Directors applied to the Court and obtained a judgement on 4 December 2018 to cancel the amount standing to the credit of the share premium account of the Company. The amount of the share premium account cancelled and credited to a special distributable reserve was £44,275,898. This reserve may also be used to fund dividend/distribution payments.

14.        NET ASSETS PER ORDINARY SHARE
Net assets per ordinary share as at 30 June 2025 of 278.9p (30 June 2024: 279.3p) is calculated based on £476,155,000 (30 June 2024: £435,439,000) of net assets of the Company attributable to the 170,741,893 (30 June 2024: 155,892,397) Ordinary Shares in issue as at 30 June 2025.

15. FINANCIAL INSTRUMENTS AND CAPITAL DISCLOSURES

(i) Market risks

The Company is subject to a number of market risks in relation to economic conditions in India. Further details on these risks and the management of these risks are included in the Strategic report.

The Company's financial assets and liabilities comprised:

	As at 30 June 2025			As at 30 June 2024
	Interest	Non-interest		Interest	Non-interest
	bearing	bearing	Total	bearing	bearing	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Investments	-	482,867	482,867	-	451,026	451,026
	---------------	---------------	---------------	---------------	---------------	---------------
Total investment	-	482,867	482,867	-	451,026	451,026
	---------------	---------------	---------------	---------------	---------------	---------------
Cash and cash equivalent	762	26,612	27,374	1,032	4,645	5,677
Short-term debtors	-	311	311	-	463	463
Short-term creditors	-	(349)	(349)	-	(4,570)	(4,570)
Long-term creditors	-	(34,048)	(34,048)	-	(17,157)	(17,157)
	---------------	---------------	---------------	---------------	---------------	---------------
Other net assets	762	(7,474)	(6,712)	1,032	(16,619)	(15,587)
	---------------	---------------	---------------	---------------	---------------	---------------
Total financial assets and liabilities	762	476,155	476,155	1,032	434,407	435,439
	=========	=========	=========	=========	=========	=========

Market price risk sensitivity
The effect on the portfolio of a 10% increase or decrease in market prices would have resulted in an increase or decrease of £48,286,700 (30 June 2024: £45,102,600) in the investments held at fair value through profit or loss at the period end date, which is equivalent to 10.1% (30 June 2024: 10.4%) of the net assets attributable to equity holders. This analysis assumes that all other variables remain constant.

The Company's portfolio of unlisted level 3 investments is not necessarily affected by market performance, however the valuations may be affected by the performance of the underlying securities in line with the valuation criteria in note 15.

The unlisted securities sensitivity analysis recognises that the valuation methodologies employed involve different levels of subjectivity in their inputs. The valuations as at 30 June 2025 were primarily driven by the weighted average of Discounted Cash Flow (DCF), Market movement and Index and Peer Group valuations.

A. Manjushree Technopack

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Average of	13,438	For purposes of the sensitivity	Discount rate used in	+4,664	-1,555
1) Discounted Cash		table it has been determined that	Discounted cash flow
Flow		discounted cash flow is the
2) Market Movement		appropriate method to illustrate a
based on Index and		sensitivity for.
2) Market movement
of peers

B. Simpolo Vitrified Private

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Average of	6,337	For purposes of the sensitivity	Discount rate used in	+2,555	-810
1) Discounted Cash		table it has been determined that	Discounted cash flow
Flow		discounted cash flow is the
2) Market Movement		appropriate method to illustrate a
based on Index and		sensitivity for.
2) Market movement
of peers

C. Ellenbarrie Industrial Gases

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Average of	5,245	For purposes of the sensitivity	Discount rate used in	+448	-419
1) Discounted Cash		table it has been determined that	Discounted cash flow
Flow		discounted cash flow is the
2) Market Movement		appropriate method to illustrate a
based on Index and		sensitivity for.
2) Market movement
of peers

D. Sudeep Pharma

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Cost price of last	2,980	Price of latest transaction	n/a	n/a	n/a
transaction		deemed fair value

E. Veeda Clinical Research

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Average of	2,811	For purposes of the sensitivity	Discount rate used in	+448	-191
1) Discounted Cash		table it has been determined that	Discounted cash flow
Flow		discounted cash flow is the
2) Market Movement		appropriate method to illustrate a
based on Index and		sensitivity for.
2) Market movement
of peers

F. Sambhv Steel Tubes

Valuation	Fair	Key variable	Variable	Price	Negative
Technique	Value	Input	Input	impact	impact
	of investments		sensitivity
	£000		(%)	£000	£000
Initial Public Offering	1,436	Confirmed price of IPO on	n/a	n/a	n/a
price		2 July 2025

 

Key variable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each unlisted company valuation. An explanation of each of the key variable inputs is provided below and includes an indication of the range in value for each input, where relevant.

Expected future cash flows and equity discount rate/WACC
The expected future cash flows are calculated using the aggregate future operating revenue based on growth in existing and new products resulting from the investment's ongoing capex and expansion plans. Equity discount rate/WACC is calculated at 15.8% (2024: 16.7%).

Selection of Index used
The selection of index is assessed based on the market comparable index to the Company. MSCI India IMI (in sterling terms) and S&P BSE 500 were the indices used as the basis for the market movement-based valuation.

Selection of comparable companies
The selection of comparable companies is assessed individually for each investment at the point of investment, and the relevance of the comparable companies is continually evaluated at each valuation. The key criteria used in selecting appropriate comparable companies are the industry sector in which they operate and the geography of the company's operations.

Application of valuation basis
Each investment is assessed and the valuation basis applied will vary depending on the circumstances of each investment. For those investments where a trading multiples approach can be taken, the methodology will factor in revenue, earnings or net assets as appropriate for the investment. Discounted cash flows will be considered where appropriate forecasts are available. The valuation will also consider any recent transactions, where appropriate.

Estimated sustainable earnings and cash flows
The selection of sustainable revenue or earnings and cash flows will depend on whether the company is sustainably profitable or not, and where it is not then sustainable revenues will be used in the valuation. The valuation approach will typically assess companies based on the last 12 months of revenue or earnings, as they are the most recent available and therefore viewed as the most reliable. Where a company has reliably forecasted earnings previously or there is a change in circumstance at the business which will impact earnings going forward, then forward estimated revenue or earnings may be used instead.

Application of liquidity discount
A liquidity discount may be applied either through the calibration of a valuation against the most recent transaction, or by application of a specific discount.

(ii) Liquidity risks
There is a risk that the Company's holdings may not be able to be realised at reasonable prices in a reasonable timeframe. Portfolio by maturity at the year end are shown below:

	30 June 2025	30 June 2024
	%	%
Within one to seven days	85.0	87.3
Between seven days to one month	8.3	8.3
Between one and three months	0.4	1.3
Greater than three months	6.3	3.1
	---------------	---------------
Total	100.0	100.0
	=========	=========

Management of liquidity risks
The Company has a diversified portfolio. The liquidity of the portfolio is reviewed regularly by the Investment Manager and the Board.

(iii) Currency risks
Although the Company's performance is measured in sterling, a high proportion of the Company's assets are denominated in Indian rupees. Change in the exchange rate between sterling and Indian rupees may lead to a depreciation of the value of the Company's assets as expressed in sterling and may reduce the returns to the Company from its investments.

Currency sensitivity
The below table shows the foreign currency profile of the Company.

Foreign currency risk profile

	As at 30 June 2025			As at 30 June 2024
		Net	Total		Net	Total
	Investment	monetary	currency	Investment	monetary	currency
	exposure	exposure	exposure	exposure	exposure	exposure
Investments	£'000	£'000	£'000	£'000	£'000	£'000
Indian Rupees	467,025	(4,638)	462,387	434,256	2,413	436,669
US Dollar	15,843	803	16,646	16,770	1,154	17,924
	---------------	---------------	---------------	---------------	---------------	---------------
Total investment	482,868	(3,835)	479,033	451,026	3,567	454,593
	=========	=========	=========	=========	=========	=========

Based on the financial assets and liabilities at 30 June 2025 and all other variables remaining constant, if sterling had weakened/strengthened against the Indian rupee by 10%, the impact on the Company's net assets at 30 June 2025 would have been an increase/(decrease) in fair value as follows:

	30 June 2025		30 June 2024
	Increase in	Decrease in	Increase in	Decrease in
	Fair Value	Fair Value	Fair Value	Fair Value
	£'000	£'000	£'000	£'000
Indian Rupees	46,239	(46,239)	43,426	(43,426)
Swedish Krona	-	-	-	-
US Dollar	1,665	(1,665)	1,677	(1,677)
	=========	=========	=========	=========

Management of currency risks
The Company's Investment Manager monitors the currency risk of the Company's portfolio on a regular basis. Foreign currency exposure is regularly reported to the Board by the Investment Manager.

The Board does not intend to hedge currency risk using any sort of foreign currency transactions, forward transactions or derivative instruments.

(iv) Credit risks
Credit risk is the risk that the issuer of a financial instrument will fail to fulfil an obligation or commitment that it has entered into with the Company.

Cash and other assets are held by the custodian.

Management of credit risks
The Company has appointed Kotak Mahindra Bank Limited (Kotak) as its depositary. The credit rating of Kotak was reviewed at the time of appointment and will be reviewed on a regular basis by the Investment Manager and the Board.

The Investment Manager monitors the Company's exposure to its counterparties on a regular basis and trades in equities are performed on a delivery versus payment basis. Impairment assessment based on an expected credit loss model is not considered material to the Company.

At 30 June 2025, the Depository held £467,086,000 (30 June 2024: £451,026,000) in respect of quoted and unquoted investments, with £15,781,000 held with SBM Bank (Mauritius). £13,191,000 in respect of cash was held by the Depository (30 June 2024: £5,677,000) with £13,421,000 held with RBS Bank and £709,000 held with HSBC Bank.

(v) Capital management policies and procedures
The Company considers its capital to consist of its share capital of Ordinary Shares of 1p each, Management Shares of £1 each, and reserves totalling £476,155,000 (30 June 2024: £435,439,000).

The Company is not subject to any externally imposed capital requirements.

The Investment Manager and the Company's Broker monitor the demand for the Company's shares and the Directors review the position at Board meetings.

16. RELATED PARTY TRANSACTIONS
The amount accrued in respect of the Performance fees due to the Investment Manager for the current Performance period is disclosed in Note 7.

The Investment Adviser provides Investment Advisory services to the Investment Manager and no fees are paid to them from the Company.

From 1 July 2024 Directors fees are payable at an annual rate of £48,000 to the Chairman, £40,000 to the Chair of the Audit Committee, and £32,000 to the other Directors.

The Directors had the following shareholdings in the Company, all of which are beneficially owned.

	As at	As at
	30 June 2025	30 June 2024
Andrew Watkins	94,425	94,425
Jamie Skinner	100,933	100,933
Rita Dhut	81,733	81,733
Dr Jerome Booth	85,522	85,522
	=========	=========

17. POST BALANCE SHEET EVENTS
There have been no significant events since the year end which would require revision of the figures or disclosure in the Financial Statements.

Financial information

This announcement does not constitute the Company's statutory accounts.  The financial information is derived from the statutory accounts, which will be delivered to the registrar of companies and will be put forward for approval at the Company's Annual General Meeting. The auditors have reported on the accounts for the year ended 30 June 2024 and the year ended 30 June 2025, their reports were unqualified and did not include a statement under Section 498(2) or (3) of the Companies Act 2006.

 

The Annual Report for the year ended 30 June 2025 was approved on 8 October 2025.

 

Annual General Meeting

Notice is hereby given that the Annual General Meeting of Ashoka India Equity Investment Trust plc will be held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH on 10 December 2025 at 11am.

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.