<PAGE>
MORGAN STANLEY
INDIA INVESTMENT FUND, INC.
- ---------------------------------------------
OFFICERS AND DIRECTORS
<TABLE>
<S> <C>
Barton M. Biggs James W. Grisham
CHAIRMAN OF THE BOARD VICE PRESIDENT
OF DIRECTORS Harold J. Schaaff, Jr.
Warren J. Olsen VICE PRESIDENT
PRESIDENT AND DIRECTOR Joseph P. Stadler
John Chu VICE PRESIDENT
DIRECTOR Valerie Y. Lewis
Gerard la Hausse de Louviere SECRETARY
DIRECTOR James R. Rooney
Gerard E. Jones TREASURER
DIRECTOR Joanna M. Haigney
John A. Levin ASSISTANT TREASURER
DIRECTOR
Fergus Reid
DIRECTOR
</TABLE>
- ---------------------------------------------
INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank, N.A.
73 Tremont Street
Boston, Massachusetts 02108
- --------------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company (International)
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank, N.A. (Domestic)
770 Broadway
New York, New York 10003
- --------------------------------------------------------
SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
- --------------------------------------------------------
LEGAL COUNSEL
Rogers & Wells
200 Park Avenue
New York, New York 10166
- --------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------
For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726.
------------------------
MORGAN STANLEY
INDIA INVESTMENT
FUND, INC.
---------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 1995
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- -------
For the third quarter and nine months ended September 30, 1995, the Fund had a
total return, based on net asset value per share, of -6.55% and -26.52%,
respectively, as compared to the Bombay Stock Exchange (BSE) National Index
returns of 3.65% and -14.91%, respectively, and the U.S. dollar adjusted BSE
Sensitive Index returns of -0.43% and -17.74%, respectively. For the period
since inception on February 25, 1994 through September 30, 1995, the Fund's
total return based on net asset value per share was -25.99% compared to -22.67%
for the BSE National Index and -24.34% for the U.S. dollar adjusted BSE
Sensitive Index.
Bearish sentiment continues to pervade the Indian markets. The Tata group, which
is one of the bluest of blue chip industrial groups of India, recently launched
a mutual fund which was significantly undersubscribed. No Tata offerings have
ever been undersubscribed in recent decades. This may be an indication of a
market bottom.
The underlying growth story continues unchanged. EPS growth rates of 25% for the
year ending March 1996, are likely. The broad deep market is trading at a P/E of
10.5. The Indian market has risen in line with earnings over the 1980s and the
1990s. We expect this trend to continue. The current cyclical downturn has to be
viewed in this context. The medium term case for having exposure to Indian
equities remains strong, and particularly so at these prices.
The Indian rupee has weakened 9% in recent months. A part of this depreciation
is related to the overall strengthening of the dollar. Most of it is the pure
inflation differential built up over the previous 30 months over which the rupee
had been flat. We do not expect the rupee to depreciate more than the inflation
differential in coming years, i.e. about 5% a year. In other words, in real
terms the rupee should remain steady. We expect the currency to stabilize around
Rs. 34.50/ Dollar. Stock markets are a good hedge against undervalued currencies
depreciating. A Mexican-like situation is unlikely in India.
Politics is moving in favor of the ruling Congress party. Elections are probably
due in May-June next year. Irrespective of the outcome, the Indian growth story
is going to remain unchanged. Political risk is way over-discounted by the
market at current prices.
Patience is key at this point of any cyclical correction. It is very easy, but
very foolish, to lose hope at the bottom. India is poised to surprise us on the
upside in the medium term.
Sincerely,
[SIG]
Warren J. Olsen
PRESIDENT
[SIG]
Vinod Sethi
PORTFOLIO MANAGER
November 7, 1995
1
<PAGE>
Morgan Stanley India Investment Fund, Inc.
Investment Summary as of September 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL
INFORMATION
TOTAL RETURN (%)
----------------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3)
------------------------ ------------------------ ------------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C>
------------------------ ------------------------ ------------------------
CURRENT QUARTER 1.22% -- -6.55% -- -0.43% --
FISCAL YEAR TO DATE -7.78 -- -26.52 -- -17.74% --
ONE YEAR -24.77 -24.77% -30.24 -30.24% -25.12 -25.12%
SINCE INCEPTION* -25.31 -16.72 -25.99 -17.20 -24.34 -16.05
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION (2)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PERIODS ENDED SEPTEMBER 30:
1994 9 MONTHS ENDED 9/30/95 (Unaudited)
<S> <C> <C>
Net Asset Value $13.99 $10.28
Capital Gains and Other Distributions 0.17
Total Return (2) 0.72% (26.52%)
Index Total Return (3) (8.03%) (17.74%)
</TABLE>
(1)Assumes dividends and distributions, if any, were reinvested.
(2)Total investment return based on per share net asset value reflects the
effects of changes in net asset value on the performance of the Fund during
each period, and assumes dividends and distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to differences
between the market price of the stock and the net asset value of the Fund.
(3)US dollar adjusted Bombay Stock Exchange (BSE) Sensitive Index
*The Fund commenced operations on February 25, 1994.
2
<PAGE>
Morgan Stanley India Investment Fund, Inc.
Portfolio Summary as of September 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO INVESTMENTS DIVERSIFICATION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO
DIVERSIFICATION
<S> <C>
Equity Securities 95.0%
Debt Securities 0.8%
Short-Term Investments 4.2%
</TABLE>
- --------------------------------------------------------------------------------
SECTORS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Automobiles 14.5%
Energy Equipment & Services 10.8%
Textiles & Apparel 7.5%
Health & Personal Care 6.1%
Financial Services 5.7%
Chemicals 4.9%
Telecommunications 4.7%
Banking 4.6%
Building Materials & Components 4.5%
Other 36.7%
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<C> <S>
1. Bharat Heavy Electricals
2. Housing Development Finance Corp.
3. Tata Engineering & Locomotive
4. State Bank of India
5. Mahanagar Telephone Nigan
6. Tata Iron & Steel
7. Hindalco
8. Crompton Greaves
9. Ballarpur Industries Ltd.
10. Associated Cement Co.
</TABLE>
3
<PAGE>
INVESTMENTS (UNAUDITED)
- ---------
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
INDIAN COMMON STOCKS (93.9%)
(Unless otherwise noted)
- -----------------------------------------------------------------
- -------------
APPLIANCES & HOUSEHOLD DURABLES (0.1%)
Kelvinator 125,585 U.S.$ 314
TVS Whirlpool Ltd. 200,000 183
------------
497
------------
- -----------------------------------------------------------------
- -------------
AUTOMOBILES (14.5%)
Apollo Tyres Ltd. 359,925 1,517
Apollo Tyres Ltd. (Rights) 426 --
Apollo Tyres Ltd. (Warrants) 91,777 66
Ashok Leyland 424,320 1,676
Autolec Industries 178,500 542
Autolec Industries, 'B' 62,545 190
Autolite Ltd. 88,200 520
Autolite Ltd. (New) 44,470 262
Ceat Tyres 473,619 949
Eicher Motors Ltd. 100 --
Escorts Ltd. 121,050 396
Escorts Tractors Ltd. 1,900 8
Harig Crankshafts Ltd. 210,400 79
Hero Honda 169,421 1,179
Hitech Gears 94,000 191
Invel Transmissions 15,071 14
Invel Transmissions (Rights) 500 --
Jai Parabolic Spring Ltd. 100 --
Jay Bharat Maruti 92,800 175
LML Ltd. 186,000 603
Lumax Automatic Parts Industries 215,400 800
Mahindra & Mahindra Ltd. 1,756 19
Modi Rubber 720,438 1,019
Motherson Sumi 150,700 489
Motor Industries Co. Ltd. 33,915 6,058
MRF Ltd. 54,050 2,872
Omax Autos Ltd. 75,900 103
Pan Auto Ltd. 300,000 113
Patheja Forgings & Auto Parts 450,000 2,149
Premier Instruments Ltd. 'B' 245,987 1,356
Premier Instruments Ltd. (Rights) 17 --
Rane Madras Ltd. 86,300 740
Rico Auto 22,000 75
S.K.F. Bearings Ltd. 16,500 1,357
Sona Steering System 15,800 44
SRF Nippondenso 650,100 1,686
Subros Auto Ltd. 98,000 301
Subros Auto Ltd. (New) 61,395 188
Sundaram Abex Ltd. 24,700 153
Sundaram Fasteners Ltd. 388,400 6,068
Swaraj Engines Ltd. 45,000 395
Tata Engineering & Locomotive 892,804 17,580
Tube Investments Of India GDR 148,600 836
VST Tillers & Tractors 173,000 296
------------
53,064
------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
BANKING (4.6%)
Federal Bank Ltd. 253,000 U.S.$ 1,768
State Bank of India 2,359,150 15,264
------------
17,032
------------
- -----------------------------------------------------------------
- -------------
BEVERAGES & TOBACCO (0.1%)
McDowell & Co. 228,000 208
United Breweries 219,300 168
------------
376
------------
- -----------------------------------------------------------------
- -------------
BROADCASTING & PUBLISHING (0.7%)
Control Print (India) Ltd. 75,000 54
Control Print (India) Ltd. (New) 27,500 20
New Delhi Television 66,660 1,326
Tata Press 137,050 1,111
------------
2,511
------------
- -----------------------------------------------------------------
- -------------
BUILDING MATERIALS & COMPONENTS (4.5%)
Associated Cement Co. 64,620 6,267
Bell Ceramics Ltd. 170,875 131
Bell Ceramics (Rights) 256,312 26
Dalmia Cement 125,000 1,332
Gujarat Sidhe Cement Ltd. 2,500,000 921
India Cements Ltd. GDR 85,000 734
Madras Cements 16,895 4,482
Murudeshwar Ceramics Ltd. 346,800 971
Mysore Cements Ltd. 1,700 2
Orissa Cement 87,100 762
Priyadarshini Cement Ltd. 241,600 215
Shree Cement 224,050 403
Somani Cement Co. Ltd. 200,000 342
------------
16,588
------------
- -----------------------------------------------------------------
- -------------
BUSINESS & PUBLIC SERVICES (0.2%)
Elbee Services Ltd. 182,700 792
------------
- -----------------------------------------------------------------
- -------------
CHEMICALS (4.9%)
Atul Products Ltd. 255,549 640
Atul Products Ltd. (New) 90,000 225
Chemicals and Plastics 100,000 371
Colour Chem Ltd. 13,645 1,174
Goodlass Nerolac Paints Ltd. 65,000 372
Gujarat Narmada Valley Fertilizers
Ltd. 477,400 760
Gujarat Narmada Valley Fertilizers
Ltd. GDR 212,000 1,617
Hindustan Organic Chemicals 250,000 220
ICI India Ltd. 385,300 1,931
Indian Dyestuff Industries Ltd. 132,745 170
Indian Dyestuff Industries Ltd.
(Rights) 30 --
Indian Organic Chemical Ltd. 732,550 896
Indian Petro Chemical Corp. 611,400 2,487
- -----------------------------------------------------------------
- -------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
CHEMICALS (CONTINUED)
Indian Petro Chemical Corp. GDR 22,000 U.S.$ 297
Indo Gulf Fertilizer & Chemical
(New) 147,200 256
ITC Agrotech Co. 95,800 249
ITC Agrotech Co. (Rights) 95,800 62
Jayant Agro 132,100 701
Jaysynth Dyechem 340,500 1,506
Metrochem Industries Ltd. 209,000 530
National Organic Chemical
Industries 18,150 53
Reliance Industries Ltd. 214,707 1,734
Sudarsha Chemicals 154,480 1,380
Tainwala Chemicals & Plastics 84,609 92
Tamil Nadu Petrochemicals 1,700 2
Vippy Solvex Products Ltd. 250,000 147
------------
17,872
------------
- -----------------------------------------------------------------
- -------------
CONSTRUCTION & HOUSING (0.3%)
Bharat Pipes & Fittings Ltd. 522,020 223
Kunstoffe Industries Ltd. 118,400 62
Kunstoffe Industries (New) 65,200 34
Nagarjuna Construction 156,100 783
------------
1,102
------------
- -----------------------------------------------------------------
- -------------
ELECTRICAL & ELECTRONICS (1.8%)
AKG Acoustics (India) Ltd. 81,300 97
Asian Electronics 148,000 2,181
Bajaj Electricals Ltd. 79,350 940
BPL Ltd. 709,900 2,009
Centrum Electronics 200,000 65
Esab India Ltd. 564,330 1,007
O.E.N. Connectors Ltd. 177,526 366
------------
6,665
------------
- -----------------------------------------------------------------
- -------------
ELECTRONIC COMPONENTS & INSTRUMENTS (3.3%)
Fujitsu ICIM 221,950 386
Infosys Technology Ltd. 167,100 2,281
Mastek Ltd. 126,400 950
Onida Savak 3,110 2
Peico Electronics & Electric 894,150 5,535
Punjab Anand Lamp Industries Ltd. 227,000 402
Rolta India Ltd. 1,411,200 998
Salora International Ltd. 243,000 358
Samtel Colour 521,300 730
Satyam Computer 125,000 182
Vikas Hybrids & Electronics Ltd. 61,000 158
------------
11,982
------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
ENERGY EQUIPMENT & SERVICES (10.8%)
Bharat Heavy Electricals 7,000,000 U.S.$ 21,665
Crompton Greaves 1,213,830 6,977
Datar Switchgear Ltd. 140,200 822
Graphite India Ltd. 100,000 277
Jyoti Structure 148,250 699
KEC International Ltd. 197,900 718
Kirloskar Oil Engine 380,840 1,572
Modern Malleables 250,000 700
Modern Malleables (New) 170,000 476
Ramco 113,800 2,415
S & S Power Switchgear Ltd. 263,105 1,567
Shriram Honda Power Equipment 299,265 1,411
Uniflex Cables Ltd. 137,700 246
Uniflex Cables Ltd. (New) 68,100 121
Uniflex Cables Ltd. (New) 81,600 146
Uniflex Cables Ltd. (Rights) 200 --
------------
39,812
------------
- -----------------------------------------------------------------
- -------------
FINANCIAL SERVICES (5.7%)
Canfin Homes 1,011,100 819
Housing Development Finance Corp. 238,806 18,267
ICICI 352,331 966
ICICI (New) 235,233 645
LKP Merchant Finance Ltd. 1,500 2
SCICI 121,400 135
SCICI (Rights) 98,500 --
Sundaram Finance 150 2
------------
20,836
------------
- -----------------------------------------------------------------
- -------------
FOOD & HOUSEHOLD PRODUCTS (0.9%)
American Dry Fruits 538,500 611
Andhra Sugars Ltd. 100 --
Aruna Sugars & Enterprises 12,450 12
Brooke Bond Lipton 1,000 8
Dhampur Sugar Mills Ltd. 100,000 357
Sakthi Sugar Ltd. 164,665 202
Satnan Overseas Ltd. 124,700 179
Thiru Arooran Sugars 264,500 741
Umred Agro Complex Ltd. 124,500 39
Vadilal Industries Ltd. 250,000 258
Western Hatcheries 237,933 771
------------
3,178
------------
- -----------------------------------------------------------------
- -------------
FOREST PRODUCTS & PAPER (2.8%)
Andhra Paper 19,610 1,460
Ballarpur Industries Ltd. 1,166,353 6,910
Paper Products Ltd. (New) 170,000 576
Paper Products Ltd. (Rights) 42,500 19
Pudumjee 221,600 1,202
Sharp Industries 42,000 28
------------
10,195
------------
- -----------------------------------------------------------------
- -------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
HEALTH & PERSONAL CARE (6.1%)
Apollo Hospitals Enterprises Ltd. 500,000 U.S.$ 486
Crossland Research Labs Ltd. 190,000 2,016
E Merck (India) Ltd. 355,250 1,738
Godrej Soaps 602,050 1,827
Hindustan CIBA-GEIGY Ltd. 25,835 2,125
Hoechst India Ltd. 490,000 3,524
Hoechst Schering Agrevo Ltd. 123,400 1,218
Indian Shaving 171,700 1,139
Lakme Ltd. 50,000 442
Pfizer Ltd. 66,450 476
Ranbaxy Labs Ltd. 75,000 1,623
Ranbaxy Labs Ltd. (Warrants) 40,000 692
Sandoz (India) Ltd. 25,000 363
Sol Pharma 59,900 162
Sun Pharmaceutical Industries Ltd. 325,000 2,625
TTK Biomed Ltd. 143,700 284
Unichem Labs Ltd. 162,700 1,511
------------
22,251
------------
- -----------------------------------------------------------------
- -------------
INDUSTRIAL COMPONENTS (0.7%)
Carborondum Universal 373,300 1,684
Chicago Pneumatic India Ltd. 153,500 796
------------
2,480
------------
- -----------------------------------------------------------------
- -------------
LEISURE & TOURISM (0.3%)
Asian Hotels Ltd. 85,350 541
Indian Hotels Co. 32,300 520
Kamata Hotels India Ltd. 300,000 236
------------
1,297
------------
- -----------------------------------------------------------------
- -------------
MACHINERY & ENGINEERING (3.4%)
Ahmed Forge 166,200 377
Artson Engineering Ltd. 192,693 222
Bharat Forge Co. Ltd. 392,918 1,529
Indian Seamless Metal Tubes 375,800 820
Indian Seamless Metal Tubes
(Rights) 400 --
Kabra Extrusion Technik Ltd. 153,000 559
Lakshmi Machine Works Ltd. 4,045 1,443
Lakshmi Synthetic Machinery 152,400 413
Praj Industries Ltd. 153,200 880
Thermax Ltd. 365,000 3,486
Wartsila Diesel Ltd. 441,500 2,681
------------
12,410
------------
- -----------------------------------------------------------------
- -------------
METALS -- NON-FERROUS (2.4%)
Hindalco 258,500 7,437
Indian Aluminum 67,600 401
Pennar Aluminum Co. 1,629,800 925
SKS Ltd. 100,000 147
------------
8,910
------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
METALS -- STEEL (4.1%)
Bellary Steels & Alloys Ltd. 300 U.S.$ --
India Seamless Steel & Alloys 916,900 263
Isibars Ltd. 500,000 1,046
Mahindra Ugine Steel Co. Ltd. 50 --
Mukand Iron & Steel Works 212,991 1,689
Panchmahal Steels Ltd. 197,700 653
Sesa Goa Ltd. 86,970 1,007
Sesa Goa Ltd. (Rights) 26,142 228
Shri Ishar Alloy Steels 50,000 57
Shri Ishar Alloy Steels 'B' 319,500 363
Special Steels Ltd. 62,550 256
Tata Iron & Steel 1,226,567 8,786
Uttam Galva Steels Ltd. 753,600 550
------------
14,898
------------
- -----------------------------------------------------------------
- -------------
MISCELLANEOUS MATERIALS & COMMODITIES (2.4%)
Asian Paints Ltd. 118,240 2,210
Container Corp. of India 2,274,600 5,263
Flex Industries 68,858 321
Flex Industries (Rights) 27,866 --
Flex Industries (Warrants) 53,939 239
Garware Plastics & Polyester 525 3
Garware Plastics & Polyester (Rights) 275 --
Pearl Polymers Ltd. 338,300 658
PVD Plastic Mouldings Industries 152,400 87
Shrenujur Co. Diamond 1,400 2
Su-Raj Diamonds 10,000 20
Su-Raj Diamonds (Rights) 450 --
Su-Raj Diamonds (Warrants) 31,900 --
------------
8,803
------------
- -----------------------------------------------------------------
- -------------
MULTI-INDUSTRY (3.5%)
BOC India Ltd. 131,500 407
E.I.D. Parry Ltd. GDR 94,320 354
Grasim Industries Ltd. 284,905 4,955
IFB Industries Ltd. 146,400 604
Indian Rayon & Industries Ltd. 2,190 31
Indian Rayon & Industries Ltd. GDS 50,000 725
Indian Rayon & Industries Ltd. GDS (New) 8,900 122
Kothari Sugars & Chemicals 191,700 220
Larsen & Toubro 24,697 203
Master Gain 1992 (Units) 4,349,100 1,513
Master Shares Ltd. 1,943,700 888
S&S Industries & Enterprises Ltd. 597,340 322
Shriram Industrial Enterprises
Ltd.
GDR (Warrants) 34,000 9
Standard Industries Ltd. 121,366 100
Straw Products Ltd. 382,498 1,624
VXL Ltd. 712,710 751
------------
12,828
------------
- -----------------------------------------------------------------
- -------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
RECREATION, OTHER CONSUMER GOODS (3.0%)
Blow Past Ltd. 227,100 U.S.$ 1,305
Cosmo Films Ltd. 209,900 873
Essel Packaging Ltd. 368,225 2,290
Kitply Industries Ltd. 540 1
Modi Xerox 652,950 3,368
Navneet Publications 152,400 674
Premier Vinyl Floors Ltd. 1,050 1
VIP Industries 161,900 372
Zee Telefilms Ltd. 396,400 2,138
------------
11,022
------------
- -----------------------------------------------------------------
- -------------
TELECOMMUNICATIONS (4.7%)
Cable Corp. 15,800 44
Indian Telephone Industries 832,700 761
Mahanagar Telephone Nigan 2,836,300 13,293
Modi Steels Ltd. 124,000 494
Punjab Wire 138,700 879
Surana Telecom Ltd. 148,700 127
Videsh Sanchar Nigam Ltd. 75,000 1,879
------------
17,477
------------
- -----------------------------------------------------------------
- -------------
TEXTILES & APPAREL (7.5%)
A.P. Rayon 470,600 971
Arun Proce 167,000 49
Arvind Mills Ltd. 194,048 818
Baroda Rayon Corp. 30 --
Baroda Rayon Corp. (Rights) 15 --
Bata India Ltd. 154,100 341
Century Textiles & Industries GDR 6,500 1,203
Coates of India Ltd. 248,000 1,791
Coates Viyella Ltd. 170,000 621
Coates Viyella Ltd. (New) 13,260 48
Coates Viyella Ltd. (Rights) 30 --
Cosmos Leather Exports Ltd. 325,000 237
DCL Polyesters Ltd. 705,250 499
Deepak Spinners Ltd. 2,500 3
Delta Industries Ltd. 380,000 1,109
G.T.N. Textiles 316,500 1,166
Indorama Synthetics 1,034,638 1,296
J.K. Synthetics Ltd. 2,094,786 1,991
Mahavir Spinning Mills Ltd. 441,000 1,898
Maral Overseas Ltd. 650,800 787
Modi Threads Ltd. 662,300 151
Precot Mills Ltd. (New) 66,777 276
Priyadarshini Spinning 177,100 144
Raymond Ltd. 418,100 3,500
Raymond Ltd. GDR 202,000 3,307
Santogen 318,000 159
Shree Rajasthan Syntex 266,550 409
SIV Industries Ltd. (Units) 104,500 1,097
SRF Ltd. 470,164 998
Super Spinning Mills Ltd. 200,357 709
Vardhaman Polytech 283,600 393
Vardhaman Polytech (Rights) 200 --
Vardhaman Spinning & General Mills
Ltd. 34,500 158
Viral Synte 250,000 483
Woolworth India 478,320 902
Woolworth India (Rights) 430 --
------------
27,514
------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
TRANSPORTATION -- SHIPPING (0.6%)
Chowgule Steamships Ltd. (New) 225 U.S.$ --
Great Eastern Shipping Ltd. 1,097,800 1,780
Great Eastern Shipping Ltd. GDR 20,000 183
Mercator Lines Ltd. 200,000 125
------------
2,088
------------
- -----------------------------------------------------------------
- -------------
UTILITIES -- ELECTRICAL & GAS (0.0%)
Andhra Valley Power Supply 2,345 6
CESC Ltd. (Preferred Warrants),
U.S. $7.62, expiring 4/24/96 353,000 28
Tata Hydro Electric Power Supply
Co. Ltd. 600 2
------------
36
------------
- -----------------------------------------------------------------
- -------------
WHOLESALE & INTERNATIONAL TRADE (0.0%)
Alpha Geo 100,000 113
Uniworth International Ltd. 5,600 4
------------
117
------------
- -----------------------------------------------------------------
- -------------
TOTAL INDIAN COMMON STOCKS
(Cost U.S.$457,435) 344,633
------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
FACE
AMOUNT
(000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
FIXED INCOME SECURITIES (0.8%)
- ---------------------------------------------------------
- ------------
CONSUMER GOODS (0.2%)
Srishti Video Corp. 12.00%,
12/12/95 INR 225 398
Srishti Video Corp. 12.00%,
11/12/96 225 398
------------
796
------------
- -----------------------------------------------------------------
- -------------
MACHINERY & ENGINEERING (0.1%)
Indian Seamless Metal Tubes
(Convertible) 10.00%, 7/13/96 13,950 312
------------
- -----------------------------------------------------------------
- -------------
MISCELLANEOUS MATERIALS & COMMODITIES (0.2%)
Garware Plastics & Polyester
16.00%, 5/1/05 277 818
------------
- -----------------------------------------------------------------
- -------------
WHOLESALE & INTERNATIONAL TRADE (0.3%)
Chemox Chemical Industries Ltd.
14.00%, 12/31/00 250 486
Chemox Chemical Industries Ltd.
(Convertible) 14.00%, 7/1/96 250 486
------------
972
------------
- -----------------------------------------------------------------
- -------------
TOTAL FIXED INCOME SECURITIES
(Cost U.S.$3,524) 2,898
------------
- -----------------------------------------------------------------
- -------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
AMOUNT VALUE
(000) (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (4.1%)
(Interest Bearing Demand Account)
Indian Rupee
(Cost U.S.$15,487) INR 511,085 U.S.$ 15,065
------------
- -----------------------------------------------------------------
- -------------
TOTAL INVESTMENTS (98.8%)
(Cost U.S.$476,446) 362,596
------------
- -----------------------------------------------------------------
- -------------
OTHER ASSETS AND LIABILITIES (1.2%)
Other Assets U.S. $8,552
Liabilities (3,973) 4,579
----------- ------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
(000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
NET ASSETS (100%)
Applicable to 35,707,092, issued and outstanding
U.S.$.01 par value shares (100,000,000 shares
authorized) U.S.$367,175
-------------
- -----------------------------------------------------------------
- -------------
NET ASSET VALUE PER SHARE U.S.$ 10.28
-------------
- -----------------------------------------------------------------
- -------------
</TABLE>
GDR -- Global Depositary Receipt
GDS -- Global Depositary Share
8
