N-Q
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-08266
The India Fund, Inc.
 
(Exact name of registrant as specified in charter)
345 Park Avenue
New York, NY 10154
 
(Address of principal executive offices) (Zip code)
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-583-5000
Date of fiscal year end: December 31, 2008
Date of reporting period: September 30, 2008
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
 

 

 

Item 1. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.

 

 

THE INDIA FUND, INC.
September 30, 2008 (Unaudited)
Schedule of Investments
INDIA (100% of holdings)
COMMON STOCKS (99.88% of holdings)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Apparel Manufacturers
   0.40%                
  335,383    
Provogue (India), Ltd. (Preferential Shares)
       $ 3,415,615     $ 4,841,684  
       
 
                
       
 
         3,415,615       4,841,684  
       
 
                
       
Beverages — Alcoholic
   1.35%                
  607,990    
United Spirits, Ltd.
         17,350,142       16,228,601  
       
 
                
       
 
         17,350,142       16,228,601  
       
 
                
       
Beverages-Non Alcoholic
   0.32%                
  266,216    
Tata Tea, Ltd.
         4,535,696       3,797,539  
       
 
                
       
 
         4,535,696       3,797,539  
       
 
                
       
Building & Construction
   1.86%                
  2,415,850    
Hindustan Construction Co.
         5,727,423       3,963,403  
  1,726,192    
IVRCL Infrastructures and Projects, Ltd.
         12,966,535       8,639,230  
  360,972    
Kalindee Rail Nirman (Engineers), Ltd.
         4,309,833       1,005,326  
  506,363    
KEC International, Ltd.
         5,794,217       3,956,888  
  435,339    
Madhucon Projects, Ltd.
         2,490,015       1,619,370  
  234,595    
Titagarh Wagons, Ltd.
         3,985,506       3,190,672  
       
 
                
       
 
         35,273,529       22,374,889  
       
 
                
       
Cement
   0.97%                
  211,567    
Grasim Industries, Ltd.
         11,146,607       7,602,267  
  808,040    
Sagar Cements, Ltd. (Preferential Shares)
         3,467,591       4,073,320  
       
 
                
       
 
         14,614,198       11,675,587  
       
 
                
       
Chemicals
   0.97%                
  3,992,400    
Chambal Fertilizers & Chemicals, Ltd.
         7,023,542       4,641,436  
  1,073,300    
United Phosphorus, Ltd.
         8,148,011       7,058,207  
       
 
                
       
 
         15,171,553       11,699,643  
       
 
                
       
Coal
   0.26%                
  2,429,000    
Gujarat NRE Coke, Ltd.
         7,223,267       3,157,467  
       
 
                
       
 
         7,223,267       3,157,467  
       
 
                
       
Communications Services
   0.22%                
  203,000    
Tech Mahindra, Ltd.
         3,569,772       2,659,553  
       
 
                
       
 
         3,569,772       2,659,553  
       
 
                
       
Computer Software & Programming
   10.55%                
  332,157    
Everonn Systems India, Ltd. +
         5,579,199       2,100,641  
  2,808,462    
Infosys Technologies, Ltd.
         51,223,491       83,572,151  
  223,999    
KPIT Cummins Infosystems, Ltd.
         435,353       165,740  
  382,702    
Mastek, Ltd.
         3,473,526       2,445,007  
  3,072,667    
Satyam Computer Services, Ltd.
         31,010,315       19,404,940  
  2,743,346    
Tanla Solutions, Ltd.
         14,223,525       9,623,470  

1

 

The India Fund, Inc.
September 30, 2008 (Unaudited)
Schedule of Investments (continued)
COMMON STOCKS (continued)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Computer Software & Programming (continued)
                    
  1,342,350    
Wipro, Ltd.
       $ 15,853,106     $ 9,707,850  
       
 
                
       
 
         121,798,515       127,019,799  
       
 
                
       
Consumer Non-Durables
   5.91%                
  7,627,515    
Hindustan Unilever, Ltd.
         39,678,340       40,853,857  
  7,560,045    
ITC, Ltd.
         25,402,292       30,262,716  
       
 
                
       
 
         65,080,632       71,116,573  
       
 
                
       
Consumer Products
   0.19%                
  8,700    
Godrej Consumer Products, Ltd.
         27,032       20,192  
  1,828,550    
Marico, Ltd.
         3,059,941       2,297,124  
       
 
                
       
 
         3,086,973       2,317,316  
       
 
                
       
Diversified Financial Services
   2.97%                
  235,605    
Edelweiss Capital, Ltd.
         5,132,239       2,080,137  
  3,731,815    
Infrastructure Development Finance Co., Ltd.
         8,167,216       5,717,110  
  4,553,468    
Power Finance Corp.
         16,238,363       12,041,749  
  509,367    
Reliance Capital, Ltd.
         14,126,211       12,392,807  
  2,732,723    
SREI Infrastructure Finance, Ltd.
         7,071,395       3,517,366  
       
 
                
       
 
         50,735,424       35,749,169  
       
 
                
       
Diversified Industries
   0.28%                
  996,070    
Elecon Engineering Co., Ltd.
         1,585,334       1,853,647  
  69,339    
NEPC India, Ltd. GDR+
         3,467       13,868  
  602,140    
Sesa Goa, Ltd.
         2,475,185       1,526,985  
       
 
                
       
 
         4,063,986       3,394,500  
       
 
                
       
Electronics & Electrical Equipment
   6.34%                
  881,289    
Bharat Heavy Electricals, Ltd.
         11,938,473       29,760,979  
  6,882,400    
Exide Industries, Ltd.
         10,990,237       8,755,954  
  660,000    
HBL Power Systems, Ltd.
         2,857,900       3,473,203  
  527,835    
Indo Tech Transformers, Ltd.
         3,042,068       3,293,560  
  2,423,174    
Jyoti Structures, Ltd.
         3,371,478       4,563,606  
  959,974    
Kei Industries, Ltd.
         1,139,489       515,093  
  294,082    
Lanco Infratech, Ltd.
         2,494,893       1,136,190  
  2,188,600    
NTPC, Ltd.
         10,101,265       8,003,663  
  46,997    
Octav Investments, Ltd. +
         136,967       21,415  
  642,461    
Punj Lloyd, Ltd.
         5,042,611       3,928,773  
  444,531    
Reliance Infastructure, Ltd.
         5,979,228       7,480,312  
  279,287    
Tata Power Company, Ltd.
         6,427,905       5,388,012  
       
 
                
       
 
         63,522,514       76,320,760  
       
 
                
       
Energy — Alternate Sources
   0.14%                
  390,973    
Webel-Sl Energy Systems, Ltd.
         3,247,755       1,710,741  
       
 
                
       
 
         3,247,755       1,710,741  
       
 
                
       
Engineering
   2.38%                
  282,868    
Jaiprakash Associates, Ltd.
         1,264,952       669,150  
  263,318    
Larsen & Toubro, Ltd.
         17,579,673       13,696,292  

2

 

The India Fund, Inc.
September 30, 2008 (Unaudited)
Schedule of Investments (continued)
COMMON STOCKS (continued)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Engineering (continued)
                    
  1,463,257    
Thermax, Ltd.
       $ 3,012,294     $ 12,962,591  
  674,450    
Voltas, Ltd.
         2,075,482       1,325,492  
       
 
                
       
 
         23,932,401       28,653,525  
       
 
                
       
Finance
   15.34%                
  279,450    
Bank of Baroda
         1,615,068       1,770,475  
  240,000    
Banking Index Benchmark Exchange Traded Scheme — Bank BeES+
         3,065,494       3,005,043  
  1,139,613    
HDFC Bank, Ltd.
         24,019,199       29,821,875  
  22,700    
HDFC Bank, Ltd. ADR
         1,833,263       1,928,365  
  1,198,998    
Housing Development Finance Corp., Ltd.
         24,495,932       54,662,718  
  2,449,291    
ICICI Bank, Ltd.
         32,235,728       27,893,182  
  692,550    
Kotak Mahindra Bank, Ltd.
         11,974,878       8,181,129  
  440,000    
PSU Bank Benchmark Exchange Traded Scheme — PSU Bank BeES +
         2,099,791       1,968,520  
  884,631    
Punjab National Bank, Ltd.
         9,661,534       8,953,675  
  4,078,140    
South Indian Bank, Ltd.
         6,558,369       9,008,986  
  1,109,258    
State Bank of India
         16,295,138       34,616,927  
  45,550    
State Bank of India GDR
         525,435       2,800,414  
       
 
                
       
 
         134,379,829       184,611,309  
       
 
                
       
Finance — Other Services
   0.20%                
  304,546    
Bajaj Finserv, Ltd.
         5,144,740       2,454,395  
       
 
                
       
 
         5,144,740       2,454,395  
       
 
                
       
Financial Services
   0.11%                
  398,119    
Network 18 Media & Investment, Ltd.
         902,462       1,214,744  
  66,353    
Network 18 Media & Investment, Ltd. PCCPS+
         86,356       113,025  
       
 
                
       
 
         988,818       1,327,769  
       
 
                
       
Food
   1.40%                
  2,063,900    
Balrampur Chini Mills, Ltd. +
         4,845,250       3,561,782  
  1,206,864    
Lakshmi Energy & Foods, Ltd. +
         4,953,528       6,903,524  
  2,934,835    
Shree Renuka Sugars, Ltd.
         7,180,304       6,430,204  
       
 
                
       
 
         16,979,082       16,895,510  
       
 
                
       
Hotels & Leisure
   0.68%                
  8,300,950    
Hotel Leelaventure, Ltd.
         6,312,948       5,063,818  
  2,172,230    
Indian Hotels Co., Ltd.
         6,550,944       3,117,392  
       
 
                
       
 
         12,863,892       8,181,210  
       
 
                
       
Investment Companies
   0.24%                
  304,546    
Bajaj Holdings and Investment, Ltd.
         6,002,197       2,930,035  
       
 
                
       
 
         6,002,197       2,930,035  
       
 
                
       
Media
   0.64%                
  1,822,998    
Zee Entertainment Enterprises, Ltd.
         10,103,255       7,677,824  
       
 
                
       
 
         10,103,255       7,677,824  
       
 
                

3

 

The India Fund, Inc.
September 30, 2008 (Unaudited)
Schedule of Investments (continued)
COMMON STOCKS (continued)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Metal — Diversified
   0.57%                
  757,853    
Sterlite Industries India, Ltd.
       $ 7,657,180     $ 6,913,704  
       
 
                
       
 
         7,657,180       6,913,704  
       
 
                
       
Motorcycles/Motor Scooters
   0.32%                
  304,546    
BajajAuto, Ltd.
         6,002,197       3,881,965  
       
 
                
       
 
         6,002,197       3,881,965  
       
 
                
       
Paper
   0.20%                
  3,878,750    
Ballarpur Industries Ltd
         3,131,731       2,349,631  
       
 
                
       
 
         3,131,731       2,349,631  
       
 
                
       
Petroleum Related
   18.70%                
  2,858,200    
Cairn India, Ltd. +
         16,637,924       12,871,485  
  344,650    
Gail India, Ltd.
         3,154,515       2,992,617  
  330,539    
Indian Oil Corp., Ltd.
         3,167,654       2,851,440  
  2,185,755    
Oil and Natural Gas Corp., Ltd.
         31,674,370       48,194,572  
  3,815,573    
Reliance Industries, Ltd.
         54,225,511       158,127,127  
       
 
                
       
 
         108,859,974       225,037,241  
       
 
                
       
Pharmaceuticals
   5.30%                
  851,481    
Dishman Pharmaceuticals & Chemicals, Ltd.
         4,039,846       5,600,394  
  765,850    
Dr. Reddy’s Laboratories, Ltd.
         11,661,541       8,396,384  
  1,330,800    
Glenmark Pharmaceuticals, Ltd.
         15,379,445       13,946,977  
  724,715    
Lupin, Ltd.
         11,726,243       11,108,748  
  1,002,512    
Panacea Biotec, Ltd.
         8,209,179       5,145,438  
  376,350    
Ranbaxy Laboratories, Ltd.
         4,448,356       1,985,323  
  561,512    
Sun Pharmaceutical Industries, Ltd.
         11,314,058       17,550,164  
       
 
                
       
 
         66,778,668       63,733,428  
       
 
                
       
Publishing
   0.03%                
  600,000    
Business India Publications (Preferential Shares) +
         1,003,792       367,934  
       
 
                
       
 
         1,003,792       367,934  
       
 
                
       
Retail Stores
   0.02%                
  251,640    
Brandhouse Retails, Ltd. +
         404,058       207,356  
       
 
                
       
 
         404,058       207,356  
       
 
                
       
Rubber
   0.22%                
  314,400    
Jain Irrigation Systems, Ltd.
         4,745,747       2,684,768  
       
 
                
       
 
         4,745,747       2,684,768  
       
 
                
       
Shipbuilding
   0.50%                
  4,700,000    
Pipavav Shipyard, Ltd. +
         9,488,959       6,004,472  
       
 
                
       
 
         9,488,959       6,004,472  
       
 
                
       
Steel
   4.92%                
  858,864    
Jindal Saw, Ltd.
         13,035,475       10,333,250  

4

 

The India Fund, Inc.
September 30, 2008 (Unaudited)
Schedule of Investments (continued)
COMMON STOCKS (concluded)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Steel (continued)
                    
  636,685    
Jindal Steel & Power, Ltd.
       $ 3,517,878     $ 17,147,046  
  175,093    
JSW Steel, Ltd.
         3,993,648       1,790,262  
  667,800    
Monnet Ispat & Energy, Ltd.
         6,614,519       6,447,651  
  2,565,225    
Steel Authority of India, Ltd.
         9,882,011       6,991,351  
  2,570,767    
Sujana Towers, Ltd.+
         3,088,983       2,096,463  
  1,138,365    
Tata Steel, Ltd.
         15,742,379       10,315,941  
  809,450    
Welspun-Gujarat Stahl Rohren, Ltd.
         7,524,112       4,095,939  
       
 
                
       
 
         63,399,005       59,217,903  
       
 
                
       
Telecommunications
   9.71%                
  5,092,904    
Bharti Airtel, Ltd.+
         77,093,123       85,131,146  
  4,459,271    
Reliance Communication, Ltd.
         38,658,233       31,703,409  
  —++    
Shyam Telecom, Ltd.+
         14       1  
  8    
Shyam Telelink, Ltd.+
         0       0  
       
 
                
       
 
         115,751,370       116,834,556  
       
 
                
       
Televisions
   0.21%                
  628,220    
Television Eighteen India, Ltd.
         1,636,309       2,488,000  
       
 
                
       
 
         1,636,309       2,488,000  
       
 
                
       
Textiles
   0.68%                
  1,091,621    
Bombay Rayon Fashions, Ltd.
         5,325,859       7,011,338  
  1,258,200    
S. Kumars Nationwide, Ltd.+
         3,636,518       1,161,353  
       
 
                
       
 
         8,962,377       8,172,691  
       
 
                
       
Transportation
   0.12%                
  986,849    
Transport Corporation of India, Ltd.
         2,115,702       1,423,593  
       
 
                
       
 
         2,115,702       1,423,593  
       
 
                
       
Vehicle Components
   1.38%                
  1,471,125    
Amtek Auto, Ltd.
         6,685,101       5,180,966  
  10    
ANG Auto, Ltd.
         72       12  
  1,732,816    
Cummins India, Ltd.
         10,211,425       11,378,696  
       
 
                
       
 
         16,896,598       16,559,674  
       
 
                
       
Vehicles
   3.28%                
  636,751    
Hero Honda Motors, Ltd.
         11,771,178       11,780,537  
  1,437,034    
Mahindra & Mahindra, Ltd.
         18,459,782       15,582,020  
  731,403    
Maruti Suzuki India, Ltd.
         15,095,355       10,701,236  
  189,826    
Tata Motors, Ltd.
         3,428,242       1,391,209  
       
 
                
       
 
         48,754,557       39,455,002  
       
 
                
       
TOTAL COMMON STOCKS
         1,088,672,009       1,202,127,316  
       
 
                

5

 

The India Fund, Inc.
September 30, 2008 (Unaudited)
Schedule of Investments (continued)
PREFERRED STOCK (0.11% of holdings)
                             
NUMBER         PERCENT OF            
OF SHARES     SECURITY   HOLDINGS   COST     VALUE  
 
       
Steel
   0.11%                
  976,761    
Tata Steel (Preferential Shares)
       $ 2,479,089     $ 1,344,359  
       
 
                
       
TOTAL PREFERRED STOCK
         2,479,089       1,344,359  
       
 
                
       
 
                    
WARRANTS (0.01% of holdings)                    
       
Computer Software & Programming
   0.00%                
  94,902    
Everonn Systems India, Ltd.
         159,406       0  
       
 
                
       
 
         159,406       0  
       
 
                
       
Financial Services
   0.01%                
  66,353    
Network 18 Media & Investment, Ltd.
         116,248       36,380  
       
 
                
       
 
         116,248       36,380  
       
 
                
       
TOTAL WARRANTS
         275,654       36,380  
       
 
                
       
 
                    
RIGHTS (0.00% of holdings)                    
       
Vehicles
   0.00%                
  31,638    
Tata Motors Rights For A Shs
         0       26,205  
  31,638    
Tata Motors Rights For Ord Shs
         0       2,627  
       
 
                
       
TOTAL RIGHTS
         0       28,832  
       
 
                
       
 
                    
       
TOTAL INVESTMENTS
   100.00%       $ 1,091,426,752     $ 1,203,536,887  
       
 
                
 
Footnotes and Abbreviations
 
    ADR — American Depository Receipt
 
    GDR — Global Depository Receipt
 
+   Non-income producing
 
++   Less than one share
 
*   As of June 30, 2008, the aggregate cost for federal income tax purposes was $1,185,520,607.
         
Excess of value over tax cost
   $ 420,955,890  
Excess of tax cost over value
     (112,577,115 )
 
      
 
        
 
   $ 308,378,775  
 
      

6

 

Supplemental Information to the Schedule of Investments
Adoption of Statement of Financial Accounting Standards No. 157 “Fair Value Measurements
In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Fund adopted SFAS 157 effective with the March 31, 2008 quarterly reporting on portfolio holdings. The three levels of the fair value hierarchy under SFAS 157 are described below:
  •   Level 1 — price quotations in active markets/exchanges for identical securities
 
  •   Level 2 — other significant observable inputs (including, but not limited to: quoted prices for similar securities, interest rates, credit risk, etc.)
 
  •   Level 3 — significant unobservable inputs (including the Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. A summary of the inputs used to value the Fund’s net assets as of September 30, 2008, is as follows:
         
    Investments in  
Valuation Inputs   Securities  
Level 1 — Quoted Prices
   $ 1,191,623,111  
Level 2 — Other Significant Observable Inputs
     5,320,145  
Level 3 — Significant Unobservable Inputs
     6,593,631  
 
      
Total
   $ 1,203,536,887  
 
      
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:
         
    Investments in Securities  
Balance, as of December 31, 2007
   $ 10,695,081  
Realized gain (loss)
     0  
Change in unrealized appreciation (depreciation)
     (4,422,666 )
Net purchases (sales)
     0  
Net transfers in/out of Level 3
     321,216  
 
      
Balance, as of September 30, 2008
   $ 6,593,631  
 
      

 

 

Item 2. Controls and Procedures.
  (a)   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
  (b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
(Registrant)
  The India Fund, Inc.
 
    
         
By (Signature and Title)*
               /s/ Prakash A. Melwani    
 
 
  Prakash A. Melwani, President
 
 
(principal executive officer)
   
     
Date
   November 19, 2008
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By (Signature and Title)*
               /s/ Prakash A. Melwani    
 
 
 Prakash A. Melwani, President
 
 
(principal executive officer)
    
     
Date
   November 19, 2008
 
 
         
By (Signature and Title)*
               /s/ Joseph M. Malangoni    
 
 
 Joseph M. Malangoni, Treasurer and Vice President
 
 
(principal financial officer)
    
     
Date
   November 19, 2008
 
 
 
*   Print the name and title of each signing officer under his or her signature.