<PAGE>
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NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
October 31, 1996
(Unaudited)
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<PAGE>
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NEW YORK
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of New York Daily Tax Free
Income Fund, Inc. for the period May 1, 1996 through October 31, 1996.
The Fund had net assets of $267,565,517 and 2,595 active shareholders as of
October 31, 1996.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 1996
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (20.92%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 7,450,000 Averill Park, NY CSD(c) 05/08/97 3.70% $ 7,459,209
4,500,000 Central Islip,UFSD TAN (Suffolk County) (c) 06/30/97 3.99 4,512,840
2,950,000 Dutchess County, NY BAN - Series B (c) 02/28/97 3.09 2,953,251
1,700,000 Dutchess County, NY BAN City of Beacon (c) 06/05/97 3.75 1,700,483
5,000,000 Freeport, NY CSD (c)
LOC State Street Bank & Trust Co. 06/30/97 3.94 5,015,692
3,000,000 NYC GO - Series B (c)
Escrowed in U.S. Treasury Securities 12/01/96 3.03 3,055,974
1,115,000 New York Medical Care Finance Agency RB
(Mental Health Services Facility) - Series A
MBIA Insured 02/15/97 3.29 1,118,917 Aaa AAA
7,200,000 Rockland County, NY Sewer BAN (c) 03/07/97 3.18 7,209,147
3,640,000 South Jefferson CSD (c)
(Jefferson, Lewis & Oswego Counties, NY) 06/20/97 4.00 3,644,412
10,000,000 Suffolk County, NY Brentwood UFSD TAN (c) 06/30/97 4.04 10,025,326
1,140,000 Village of Limestone, Cattaraugus County, NY (c)
Water System BAN 07/25/97 4.04 1,142,331
8,130,000 Westchester County, NY GO - Series A 12/15/96 3.43 8,140,464 Aaa AAA
- ----------- -----------
55,825,000 Total Other Tax Exempt Investments 55,978,046
- ----------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (b) (64.98%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Counties of Warren & Washington IDA IDRB
(Griffith Micro Science Inc. Project) - Series 1994
LOC First National Bank of Chicago 12/01/14 3.70% $ 5,000,000 A1
3,000,000 Franklin County, NY IDA IDRB (Kes Chatauqua Project)
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 07/01/21 3.55 3,000,000 A1
1,185,000 Glen Falls, NY IDA IDRB (Broad Street Plaza)
LOC Fleet National Bank 12/01/06 3.55 1,185,000 P1 A1
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 3.50 1,000,000
1,580,000 Metropolitan Museum of Art
(Dormitory Authority of New York) RB - Series 1993 07/01/15 3.45 1,580,000 VMIG-1 A1+
6,800,000 Metropolitan Transportation Authority - Series 1991A
LOC Morgan Guaranty/BK of Tokyo/Mitsubishi Bk/
Sumitomo Bk/Industrial Bk of Japan/Natwest 07/01/21 3.50 6,800,000 VMIG-1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 470,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership)
LOC Fleet National Bank 01/01/06 4.00% $ 470,000 P1 A1
1,000,000 Nassau County, Manhassett (c)
LOC Bankers Trust Company 12/01/99 3.50 1,000,000
1,000,000 New York City GO 1993 - Series E-3
LOC Morgan Guaranty Trust Company 08/01/23 3.65 1,000,000 VMIG-1 A1+
2,700,000 New York City Trust Cultural Resource RB (Jewish Museum)
LOC Sumitomo Bank, Ltd. 12/01/21 3.65 2,700,000 VMIG-1 A1
2,300,000 New York City Trust Cultural Resource RB
(Museum of Broadcasting)
LOC Sumitomo Bank, Ltd. 05/01/14 3.55 2,300,000 VMIG-1 A1
5,100,000 New York City, NY - Subseries E-4
LOC State Street Bank & Trust Co. 08/01/21 3.65 5,100,000 VMIG-1 A1+
1,100,000 New York City, NY GO - Series B-5
MBIA Insured 08/15/22 3.50 1,100,000 VMIG-1 A1+
1,300,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/22 3.65 1,300,000 VMIG-1 A1+
3,200,000 New York City, NY GO Bond - Series E-2
LOC Morgan Guaranty Trust Company 08/01/20 3.65 3,200,000 VMIG-1 A1+
1,000,000 New York City, NY GO Bond - Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/19 3.65 1,000,000 VMIG-1 A1+
1,000,000 New York City, NY GO Bond - Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/18 3.65 1,000,000 VMIG-1 A1+
2,000,000 New York City, NY HDC (East 17th St.) - Series A
LOC Chase Manhattan Bank, N.A. 01/01/23 3.60 2,000,000 A1+
6,500,000 New York City, NY HDC (East 96th St.) - Series 1990A
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 08/01/15 3.35 6,500,000 VMIG-1
3,000,000 New York City, NY HDC
(Upper Fifth Avenue Project) - Series 1989A
LOC Bankers Trust Company 01/01/16 3.30 3,000,000 VMIG-1
500,000 New York City, NY IDA (National Audubon Society)
LOC Swiss Bank Corp. 12/01/14 3.45 500,000 A1+
11,100,000 New York City, NY IDA (Nippon Cargo Airlines Company)
LOC Industrial Bank of Japan, Ltd. 11/01/15 4.15 11,100,000 A1+
1,100,000 New York City, NY IDA IDRB Japan Airlines Company
LOC Morgan Guaranty Trust Company 11/01/15 3.85 1,100,000 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1996
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,200,000 New York City, NY IDRB (Airport Project) - Series 1985
LOC Bayerische Landesbank Girozentrale 04/01/00 3.45% $ 5,200,000 P1 A1+
1,300,000 New York State Dormitory Authority RB
LOC Wachovia Bank & Trust Co., N.A. 07/01/23 3.55 1,300,000 VMIG-1
5,000,000 New York State Dormitory Authority RB
(Oxford University Press) (c)
LOC Landesbank Hessen 07/01/25 3.45 5,000,000
4,200,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series A
LOC Morgan Guaranty Trust Company 11/01/20 3.25 4,200,000 P1
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 3.35 2,000,000 P1 A1+
1,400,000 New York State ERDA PCRB (Niagara Mohawk Power Corp.)
LOC Toronto-Dominion Bank 12/01/25 3.60 1,400,000 P1
2,000,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) - Series 1988A
LOC Morgan Guaranty Trust Company 12/01/23 3.70 2,000,000 A1+
9,450,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 3.60 9,450,000 P1
2,400,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1987A (c)
LOC Toronto-Dominion Bank 03/01/27 3.80 2,400,000
10,700,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 3.70 10,700,000 P1
2,700,000 New York State ERDA PCRB
(Rochester Gas & Electric) - Series 1984
LOC The Bank of New York 10/01/14 3.50 2,700,000 P1
505,000 New York State JDA 03/01/05 3.80 505,000 VMIG-1
685,000 New York State JDA - Series D
LOC Sumitomo Bank, Ltd. 03/01/99 3.60 685,000 VMIG-1 A1
800,000 New York State JDA - Series G
LOC Sumitomo Bank, Ltd. 03/01/99 3.60 800,000 VMIG-1 A1
3,300,000 New York State JDA Special Purpose RB 03/01/02 3.80 3,300,000 VMIG-1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 12,400,000 New York State (LGAC)
LOC Credit Suisse/Swiss Bank/Union Bank of Switzerland 04/01/22 3.45% $ 12,400,000 VMIG-1 A1+
4,900,000 New York State (LGAC) - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 3.50 4,900,000 VMIG-1 A1+
4,900,000 New York State (LGAC) - Series G
LOC National Westminster Bank PLC 04/01/25 3.40 4,900,000 VMIG-1 A1+
5,800,000 New York State (LGAC) RB - Series 1994B
LOC Swiss Bank Corp. 04/01/23 3.40 5,800,000 VMIG-1 A1+
8,000,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 3.45 8,000,000 VMIG-1
1,400,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 3.50 1,400,000 VMIG-1
6,700,000 Oswego County, NY IDA PCRB
(Philip Morris Companies Incorporated) 12/01/08 3.50 6,700,000 P1 A1
1,000,000 Port Authority of New York & New Jersey
Special Obligation RB (Versatile Structure) 04/01/24 3.65 1,000,000 VMIG-1 A1+
500,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 12/01/15 3.55 500,000 A1
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/97 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/96 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/98 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/99 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/00 3.75 500,000 P1 A1+
200,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/01 3.75 200,000 P1 A1+
7,000,000 Suffolk County, NY IDA
(Nissequogue Cogen Partners) - Series 1993
LOC Toronto-Dominion Bank 12/15/23 3.55 7,000,000 VMIG-1 A1+
4,000,000 Suffolk County, NY Water Authority BAN 12/21/99 3.45 4,000,000 VMIG-1
----------- -----------
173,875,000 Total Other Variable Rate Demand Instruments 173,875,000
----------- -----------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1996
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Put Bonds (d) (4.57%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 350,000 Fulton County, NY IDA (LCM Properties Realty Trust) (c)
LOC The Bank of New York 06/15/97 3.95% $ 350,000
5,000,000 New York State ERDA (Rochester Gas & Electric)
LOC Credit Suisse 11/15/96 3.75 5,000,000 Aa2
6,865,000 New York State ERDA PCRB (Long Island Lighting Co.)
LOC Deutsche Bank A.G. 03/01/97 3.25 6,865,000 VMIG-1
- ----------- -----------
12,215,000 Total Put Bonds 12,215,000
- ----------- -----------
<CAPTION>
Tax Exempt Commercial Paper (1.87%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,000,000 New York City, NY GO
MBIA Insured 12/30/96 3.45% $ 5,000,000 VMIG-1 A1+
- ----------- -----------
5,000,000 Total Tax Exempt Commercial Paper 5,000,000
- ----------- -----------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (3.29%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 193,348 Auburn, NY IDA IDRB
(Bo-Mer Manufacturing Company Incorporated)
LOC Chase Manhattan Bank, N.A. 10/01/00 5.36 193,348 P1 A1
285,000 BSE Corporation Project
LOC Chase Manhattan Bank, N.A. 07/01/01 5.36 285,000 P1 A1
319,957 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.36 319,957 P1 A1
275,863 Datagraphic Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/98 5.36 275,863 P1 A1
1,470,000 Executive Square Business Park
LOC Chase Manhattan Bank, N.A. 06/01/01 5.36 1,470,000 P1 A1
224,137 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.36 224,137 P1 A1
26,666 Ferrara Brothers Building Materials Corporation - Series 1981
LOC Chase Manhattan Bank, N.A. 01/01/97 5.36 26,666 P1 A1
761,400 GL II Associates
LOC Chase Manhattan Bank, N.A. 01/01/99 5.36 761,400 P1 A1
1,627,500 Giaquinto Joint Venture
LOC Chase Manhattan Bank, N.A. 07/01/02 5.36 1,627,500 P1 A1
282,623 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.36 282,623 P1 A1
521,720 Metro Seliger Industries, Incorporated 1984
LOC Chase Manhattan Bank, N.A. 08/10/99 5.36 521,720 P1 A1
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Variable Rate Demand Instruments - Participations (b) (Continued)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 203,440 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.36% $ 203,440 P1 A1
213,304 New York City, IDA IDRB
(Precision Plating Incorporated)
LOC Chase Manhattan Bank, N.A. 09/01/00 5.36 213,304 P1 A1
385,591 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chase Manhattan Bank, N.A. 06/01/00 5.36 385,591 P1 A1
155,555 New York City, NY IDA IDRB
(Abigail Press, Incorporated Project)
LOC Chase Manhattan Bank, N.A. 02/01/99 5.36 155,555 P1 A1
22,500 New York City, NY IDA IDRB
(Zaro's Bakeshop Incorporated)
LOC Chase Manhattan Bank, N.A. 11/01/96 5.36 22,500 P1 A1
192,750 One Crouse Medical Plaza
LOC Chase Manhattan Bank, N.A. 12/10/98 5.36 192,750 P1 A1
1,105,000 Penn-Plax Plastics, Nassau County
LOC Dai-Ichi Kangyo Bank, Ltd. 01/01/00 5.36 1,105,000 P1 A1
45,000 Ram Realty Company Project
LOC The Bank of New York 02/01/99 4.95 45,000 P1 A1
396,638 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.36 396,638 P1 A1
89,305 Ulster County, NY IDA IDRB
(Fin Pan Incorporated Project)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.36 89,305 P1 A1
- ----------- -----------
8,797,297 Total Variable Rate Demand Instruments - Participations 8,797,297
- ----------- -----------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (3.55%)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 573,635 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 4.95% $ 573,635 P1 A1
6,500,000 Blazer Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 5.36 6,500,000 P1 A1
270,750 J. Treffiletti & Sons
LOC Key Bank, N.A. 09/01/00 4.95 270,750 P1 A1
900,000 Rockland County, NY IDA
(Bendix Mouldings Incorporated Project) - Series 1985 (c)
LOC Standard Chartered Bank 12/01/01 4.95 900,000
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1996
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Variable Rate Demand Instruments - Private Placements (b) (Continued)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 303,750 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 4.95% $ 303,750 P1 A1
948,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 4.95 948,750 P1 A1
- ----------- -----------
9,496,885 Total Variable Rate Demand Instruments - Private Placements 9,496,885
- ----------- -----------
Total Investments (99.18%) (Cost $265,362,228+) 265,362,228
Cash and Other Assets, Net of Liabilities (0.82%) 2,203,289
-----------
Net Assets (100.00%) $267,565,517
===========
Net asset value, offering and redemption price per share:
Class A shares, 267,559,456 shares outstanding (Note 3) $ 1.00
===========
Class B shares, 8,315 shares outstanding (Note 3) $ 1.00
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) The ratings noted for variable rate demand instruments are those of the
bank whose letter of credit secures such instruments or the guarantor of
the bond. P1 and A1+ are the highest ratings assigned for tax exempt
commercial paper.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and where indicated are unconditionally secured as
to principal and interest by a bank letter of credit. The interest rates
are adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(c) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
(d) The maturity date indicated is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note LGAC = Local Government Assistance Corporation
CSD = Central School District PCFA = Pollution Control Financial Authority
ERDA = Energy and Research Development Authority PCRB = Pollution Control Revenue Bond
GO = Government Obligation RAN = Revenue Anticipation Note
HDC = Housing Development Corporation RB = Revenue Bond
IDA = Industrial Development Authority TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond UFSD = Unified School District
JDA = Job Development Authority
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 5,016,224
-------------
Expenses: (Note 2)
Investment management fee............................................. 421,022
Administration fee.................................................... 294,716
Shareholder servicing fee (Class A)................................... 280,681
Custodian expenses.................................................... 10,699
Shareholder servicing and
related shareholder expenses...................................... 100,274
Legal, compliance and filing fees..................................... 11,964
Audit and accounting.................................................. 31,124
Directors' fees and expenses.......................................... 7,500
Other expenses........................................................ 6,541
-------------
Total expenses.................................................... 1,164,521
Less: Expenses paid indirectly.................................... ( 13,377)
-------------
Net expenses........................................... 1,151,144
-------------
Net investment income.................................................... 3,865,080
</TABLE>
<TABLE>
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments.................................. -0-
-------------
Increase in net assets from operations................................... $ 3,865,080
=============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
<TABLE>
<CAPTION>
Six Months
Ended Year
October 31, 1996 Ended
(Unaudited) April 30, 1996
--------- --------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 3,865,080 $ 8,266,259
Net realized gain (loss) on investments....................... -- --
--------------- -------------
Increase in net assets from operations........................ 3,865,080 8,266,259
Dividends to shareholders from net investment income
Class A....................................................... ( 3,865,070)* ( 8,266,259)*
Class B....................................................... ( 10)* --
Capital share transactions (Note 3)
Class A....................................................... ( 15,810,841) 28,946,430
Class B....................................................... 8,315 --
--------------- -------------
Total increase (decrease)................................. ( 15,802,526) 28,946,430
Net assets:
Beginning of period........................................... 283,368,043 254,421,613
--------------- -------------
End of period................................................. $ 267,565,517 $ 283,368,043
=============== =============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. is a no-load, non-diversified,
open-end management investment company registered under the Investment Company
Act of 1940. The Fund is a short-term, tax exempt money market fund. The Fund
has two classes of stock authorized, Class A and Class B. The Class A shares are
subject to a service fee pursuant to the Distribution Plan. The Class B shares
are not subject to a service fee. Additionally, the Fund may allocate among its
classes certain expenses to the extent allowable to specific classes, including
transfer agent fees, government registration fees, certain printing and postage
costs, and administrative and legal expenses. Class specific expenses of the
Fund were limited to distribution fees and minor transfer agent expenses. In all
other respects, Class A and Class B shares represent the same interest in the
income and assets of the Fund. Distribution of Class B shares commenced October
10, 1996. The Fund's financial statements are prepared in accordance with
generally accepted accounting principles for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager), equal to .30% of the Fund's
average daily net assets. The Manager is required to reimburse the Fund for its
expenses (exclusive of interest, taxes, brokerage, and extraordinary expenses)
to the extent that such expenses, including the investment management and the
shareholder servicing and administration fees, for any fiscal year exceed the
lesser of (i) 1 1/2% of the Fund's average net assets or (ii) the limits on
investment company expenses prescribed by any state in which the Fund's shares
are qualified for sale. No such reimbursement was required for the period ended
October 31, 1996.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets.
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors L.P. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement,
only with respect to the Class A shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund with
respect only to the Class A shares, a fee equal to .20% of the Fund's average
daily net assets. There were no additional expenses borne by the Fund pursuant
to the Distribution Plan.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $60,213 paid to Reich & Tang
Services L.P., an affiliate of the Manager as servicing agent for the Fund.
Included in the Statement of Operations under the captions "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $13,377.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$3,000 per annum plus $500 per meeting attended.
3. Capital Stock
At October 31, 1996, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $267,566,082. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
October 31, 1996 April 30, 1996
---------------- --------------
Class A
<S> <C> <C>
Sold 226,847,440 452,103,464
Issued on reinvestment of dividends....... 3,476,004 7,544,314
Redeemed.................................. ( 246,134,285) ( 430,701,348)
------------- -------------
Net increase (decrease)................... ( 15,810,841) 28,946,430
============= =============
<CAPTION>
October 10, 1996
(Commencement of Sales) to
October 31, 1996
----------------
Class B
<S> <C> <C>
Sold...................................... 8,312 --
Issued on reinvestment of dividends....... 3 --
Redeemed.................................. -- --
------------- -------------
Net increase (decrease)................... 8,315 --
============= =============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at October 31, 1996 amounted to $565.
Such losses represent tax basis net capital losses which may be carried forward
to offset future capital gains. Such losses expire April 30, 2002.
5. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 72% of these investments are
further secured, as to principal and interest, by letters of credit issued by
financial institutions. The Fund maintains a policy of monitoring its exposure
by reviewing the credit worthiness of the issuers, as well as that of the
financial institutions issuing the letters of credit, and by limiting the amount
of holdings with letters of credit from one financial institution.
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<PAGE>
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===============================================================================
<TABLE>
<CAPTION>
6. Selected Financial Information
CLASS A Six Months Year Ended April 30,
- ------- Ended ----------------------------------------------------------------------
October 31, 1996 1996 1995 1994 1993 1992
---------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------- ------- ------- ------- --------
Income from investment operations:
Net investment income............. 0.014 0.030 0.027 0.018 0.023 0.037
Less distributions:
Dividends from net investment income (0.014) ( 0.030) ( 0.027) ( 0.018) ( 0.023) ( 0.037)
-------- ------- ------- ------- ------- --------
Net asset value, end of period........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======= ======= ======= ======= ========
Total Return.......................... 2.80%* 3.08% 2.74% 1.84% 2.28% 3.73%
Ratios/Supplemental Data
Net assets, end of period (000)....... $267,557 $283,368 $254,422 $218,348 $210,486 $202,291
Ratios to average net assets:
Expenses.......................... 0.83%*(a) 0.84% 0.87% 0.89% 0.89% 0.87%
Net investment income............. 2.75%* 3.02% 2.71% 1.82% 2.25% 3.63%
</TABLE>
<TABLE>
<CAPTION>
October 10, 1996
(Commencement of Sales) to
CLASS B October 31, 1996
- ------- ----------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.. $ 1.000
--------
Income from investment operations:
Net investment income............. 0.002
Less distributions:
Dividends from net investment income (0.002)
--------
Net asset value, end of period........ $ 1.000
========
Total Return.......................... 3.12%*
Ratios/Supplemental Data
Net assets, end of period (000)....... $ 8
Ratios to average net assets:
Expenses.......................... 0.61%*(a)
Net investment income............. 3.08%*
</TABLE>
* Annualized
(a) Includes expense offsets equivalent to 0.01% of average net assets.
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<PAGE>
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- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information.
- --------------------------------------------------------------------------------
New York Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian, Transfer Agent
& Dividend Disbursing Agent
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
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<PAGE>
