<PAGE>
CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Objective 2
- --------------------------------------- --------
Management 2
- --------------------------------------- --------
Market Information 2
- --------------------------------------- --------
Highlights 3
- --------------------------------------- --------
Investment Review 4
- --------------------------------------- --------
Major Holdings 6
- --------------------------------------- --------
Investment Portfolio 8
- --------------------------------------- --------
Statement of Assets and Liabilities 14
- --------------------------------------- --------
Statement of Operations 15
- --------------------------------------- --------
Statement of Changes in Net Assets 16
- --------------------------------------- --------
Financial Highlights 17
- --------------------------------------- --------
Notes to Financial Statements 18
- --------------------------------------- --------
Other Information 22
- --------------------------------------- --------
Dividend Reinvestment Plan 23
- --------------------------------------- --------
</TABLE>
<PAGE>
OBJECTIVE
- -------------------------------------------------------------------------------
Jardine Fleming India Fund, Inc. (the "Fund") seeks to achieve long-term
capital appreciation through investments primarily in equity securities of
Indian companies. The Fund may also invest up to 10% of its assets in equity
securities of companies in Pakistan, Sri Lanka and Bangladesh.
The Fund provides investors with an opportunity to participate in the
emerging economies of India and its neighbors. The Indian government
introduced a structural reform program in 1991 which led to the adoption of
more liberal and free market economic policies. Liberalization of investment
restrictions has enabled foreign institutional investors such as the Fund to
have access to the increasing investment opportunities created by India's
reforms.
MANAGEMENT
- -------------------------------------------------------------------------------
Jardine Fleming International Management Inc. ("JFIM") is the investment
management company appointed to advise and manage the Fund's portfolio. JFIM
is part of the Jardine Fleming group. The group has a team of investment
managers in the Asia Pacific region managing funds of approximately US$19.6
billion at May 31, 1998 for both institutional and private clients. Mr.
Edward Pulling is the portfolio manager of the Fund. Mr. Pulling has worked
in the Asia Pacific region for eight years.
MARKET INFORMATION
- -------------------------------------------------------------------------------
JARDINE FLEMING INDIA FUND, INC. IS LISTED ON THE NEW YORK STOCK EXCHANGE
(SYMBOL "JFI") AND THE MARKET PRICE IN US DOLLARS IS PUBLISHED IN:
- -----------------------------------------------------------------------------
[ ] The Wall Street Journal (daily)
[ ] The Asian Wall Street Journal (daily)
[ ] Reuters (page JFIC)
[ ] The New York Times (daily)
[ ] Barron's (each Saturday)
THE NET ASSET VALUE PER SHARE IS CALCULATED WEEKLY AND PUBLISHED IN US
DOLLARS IN:
- -----------------------------------------------------------------------------
[ ] The Wall Street Journal (under "Closed-End Funds" each Monday)
[ ] The Asian Wall Street Journal (under "Publicly Traded Funds" each Monday)
[ ] Reuters (page JFIC)
[ ] South China Morning Post in Hong Kong (first Thursday of every month)
[ ] The New York Times (each Sunday)
[ ] Barron's (each Saturday)
Additional information (including updated Net Asset Value and Market Price)
may be obtained through the Fund's dedicated toll-free number, 800-757-0590.
To receive a copy of the Fund's most recent financial report or Dividend
Reinvestment Plan brochure, please call toll-free 800-426-5523.
2
<PAGE>
Highlights
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT AT
MAY 31, 1998 NOVEMBER 30, 1997
US $ US $
- --------------------------------------- -------------- -----------------
<S> <C> <C>
Net Assets 87,270,149 91,430,063
Net Asset Value 7.72 8.09
MARKET DATA
Market Price on New York Stock Exchange 6.3125 6.625
Discount to Net Asset Value -18.23% -18.11%
TOTAL RETURN
Net Asset Value -4.6%(1) 18.6%(2)
Market Price -4.7%(1) 3.9%(2)
Bombay Stock Exchange ("BSE")
National 100 Index -1.4%(1) 11.2%(2)
</TABLE>
NET ASSET VALUE AND MARKET PRICE VS. BSE NATIONAL 100 INDEX (3)
<TABLE>
<CAPTION>
NET ASSET VALUE SHARE PRICE SENSITIVE INDEX
--------------- ----------- ---------------
<S> <C> <C> <C>
Mar-94 100 100 100
101.66 94.2 95.56
99.42 88.33 94.55
May-94 104.33 105.87 95.81
108.23 92.53 102.28
110.47 96.67 103.5
Aug-94 123.68 104.2 111.48
115.31 99.2 105.71
114.56 103.33 104.8
Nov-94 115.02 102.53 104.67
111.26 91.67 101.49
104.32 83.72 96.61
93.35 81.15 90.08
Feb-95 89.26 76.08 85.85
88.16 74.39 83.11
84.43 80.34 78.97
May-95 86.7 83.72 80.87
82.75 78.65 79.24
84.95 79.46 82.77
Aug-95 80.57 71.97 78.33
75.01 67.7 76.03
69.6 60.12 73.93
Nov-95 56.64 60.93 63.95
60.3 61.81 66.17
56.06 60.93 59.95
Feb-96 67.4 66.89 73.63
67.62 69.39 73.9
74.3 74.47 81.16
May-96 70.55 62.62 68.72
71.43 62.62 80.5
61.77 54.16 73.74
Aug-96 61.55 54.16 72.39
55.47 49.96 66.14
53.35 47.39 64.37
Nov-96 50.13 43.19 58.47
53.06 48.27 61.89
56.35 52.47 67.17
Feb-97 61.4 56.73 71.82
58.55 50.78 66.35
67.47 60.09 74.87
May-97 66.89 59.24 73.29
75.52 70.68 83.01
76.48 77.04 85.37
Aug-97 67.62 56.73 75.87
69.23 60.93 76.08
66.52 54.16 75.78
Nov-97 59.2 45.29 65.04
60.3 47.8 65.81
54.3 44.89 58.71
Feb-98 59.2 48.68 64.84
60.89 49.08 69.91
65.06 51.62 73.94
May-98 56.5 42.74 64.16
</TABLE>
- ----------------
(1) For the six months ended May 31, 1998.
(2) For the year ended November 30, 1997.
(3) Based on initial net asset value and market price of $13.85 and $15.00,
respectively.
3
<PAGE>
INVESTMENT REVIEW
- -------------------------------------------------------------------------------
Dear Fellow Shareholders,
The first half of the fiscal year of the Fund, from December 1997 to May
1998, has continued in a pattern of varied themes so frequently evident in
the Indian market, about which I have written in the past. This particular
period has witnessed the fall of India's coalition government and election of
a new government led by the BJP party, India's detonation of a nuclear bomb,
as well as the spread of the so called 'Asian flu', or economic and currency
crisis, that further engulfed the economies of South East and East Asia.
Over this half year period, the Bombay Stock Exchange Index rose initially
some 30% only to lose most of the gains by the end of the period while the
rupee, India's currency, eroded approximately 4% against the dollar during
the same period. Since period-end, both the stock market and the rupee have
fallen further and at the time of writing, the market is consolidating above
the 3,000 level for the Bombay Stock Exchange ("BSE") 30 Index, while the
rupee trades at 42.5/US$1.00.
Over the same half-year period, the Fund's portfolio, based on net asset
value, declined 4.6% compared with the BSE National 100 Index decline of
1.4%. The bulk of this underperformance occurred in March when cyclical
stocks staged a strong and unexpected rally. This rally appears now complete
and indeed, cyclicals have more recently underperformed, thereby improving
the Fund's relative performance.
The fall of the government in October 1997 combined with the knock-on effects
of the Asian regional currency crisis, adversely affected both India's
markets and currency in the months of December 1997 and January 1998. In
December, the Reserve Bank of India (the "RBI") was forced to raise interest
rates by 200 basis points to protect the rupee. Such conditions provided
little incentive to foreign investors to be anything other than net sellers
of the market. The ensuing quarter represented the first since the opening of
the Indian market to foreign investors in which foreigners had been net
sellers.
However, this situation was reversed in mid-February, ahead of the election, as
both domestic and foreign investors looked for the miracle of a majority
government that would have the ability to govern with some assertion. March
duly heralded a BJP-led coalition government with a working majority that had
the effect of--and this was despite the market's previous perceptions of the
BJP's nationalistic policies and selectivity to foreign investment--relatively
stabilizing the currency and creating a shortage of good companies. The rally
continued through mid-April despite poor economic numbers for the cyclical
sectors that were announced in March. The market was checked however in April
by concerns at the RBI of rising inflation and hence a need to tighten monetary
policy.
4
<PAGE>
INVESTMENT REVIEW (concluded)
- -------------------------------------------------------------------------------
The month of May witnessed a totally unpredicted and damaging situation when
the new government conducted a series of nuclear tests close to the Pakistan
border. While within India these tests had the effect of consolidating
support behind the BJP, the international reaction was singularly negative
and led to the imposition of sanctions against India by the U.S. and Japan
causing both the stock market and currency to sell off.
At the broader macro-level, the economy would appear to be slowing: gross
domestic product growth forecasts have recently been reduced from 5 - 5.5%
while forecasts for corporate profitability for fiscal 1999 have been
recently revised down to 15%. Further, within this environment, some upside
pressure on interest rates may occur.
The Fund's portfolio is comprised of high quality counters with the manager's
investment focus both on return-on-equities and on those sectors where India
has proven skills. Consequently, the consumer, technology and pharmaceutical
sectors are noticeably featured together with utility stocks in an
environment of some caution. The Fund's position in Videsh Sanchar Nigam Ltd.
underscores the manager's less positive view on the rupee. This currency view
has been determined by the sanctions resulting from the nuclear tests, the
net selling of equities by foreign investors, declines in foreign direct
investment and a widening trade deficit.
The market, at eleven times 1999 earnings, discounts much of the bad news and
has every chance of trading within a range above the 3,000 level for the BSE
30 Index. With the situation in Pakistan at a critical level, a U.S.-led
initiative might relax sanctions for the benefit of both India and Pakistan.
The Fund's heavier exposures in the technology and pharmaceutical sectors,
where growth is strong and sustainable, will benefit in the upturn. If the
past is indicative, the bulk of the year's currency losses are behind us
while, going forward, the RBI has recently announced some easing of previous
currency hedging restrictions.
The Fund's Board is concerned of the levels of discounts in the industry and
is monitoring the situation.
Respectively submitted,
/s/ Julian M. I. Reid
- ---------------------
Julian M. I. Reid
President
July 20, 1998
5
<PAGE>
MAJOR HOLDINGS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------- ------------
AT MAY 31, 1998
% OF
COMPANY NET ASSETS
- --------------------------------------------------------------------------------------------- ------------
<S> <C>
HINDUSTAN LEVER LTD. ("HL") 11.7
Majority owned by Unilever, HL is the largest listed company in India and possesses an unparalleled
distribution system. HL's return on equity of 40% is evidence of the company's outstanding management.
With India's consumption on a long-term upward trend, HL should achieve above average growth for
years to come.
ITC LTD. 7.8
A subsidiary of B.A.T., ITC is India's largest manufacturer and distributor of cigarettes. After
years of low return diversification, management is focusing on the core business, which is increasing
ITC's already strong cash flows.
RELIANCE INDUSTRIES LTD. ("RI") 6.3
RI is one of the largest and the most vertically integrated synthetic textile manufacturers in
India. It is also India's premier manufacturer in the PVC plastics market.
VIDESH SANCHAR NIGAM LTD. ("VSN") 6.0
VSN is the monopoly provider of international telecommunications. Majority owned by the government,
VSN is expected to produce 15% growth in volume per annum.
MAHANAGAR TELEPHONE NIGAM LTD. ("MTN") 5.1
MTN was established by the Department of Telecommunications in 1986 to provide telephone services
in Mumbai and Delhi, which account for 26% of national capacity. MTN's strategy is to upgrade both
the quality and range of its services. Lines expansion has risen from 0.75 million to 2.21 million
and the company recently introduced services such as voice mail, paging and mobile phones.
6
<PAGE>
MAJOR HOLDINGS
- -------------------------------------------------------------------------------
AT MAY 31, 1998
% OF
COMPANY NET ASSETS
- --------------------------------------------------------------------------------------------- ------------
BAJAJ AUTO LTD. ("BAJAJ") 4.3
Bajaj is a dominant player in the two/three-wheeler automobile industry in India with a 49% share
of the market. Its product range includes scooters, motorcycles, mopeds and three-wheelers. Bajaj
maintains a network of 350 exclusive dealers across India and 12,000 service centers.
HINDUSTAN PETROLEUM CORPORATION LTD. ("HPC") 4.1
The second largest integrated oil company in India, HPC is engaged in the refining and marketing
of petroleum products and has a primary refining capacity of 10 million tons per annum. The company
ranks third in petroleum product distribution in India and has formed joint ventures with the Birla
group, Oman Oil, Colas, Exxon and Total for both importation and distribution
SATYAM COMPUTERS LTD. ("SC") 4.1
SC is a high growth software solutions company. The company's basic business is solving software
issues such as Year 2000 and conversion to the Euro by providing on-site services or communication
via satellite.
STATE BANK OF INDIA LTD. ("SBI") 3.4
SBI is the oldest and largest commercial bank in India. It has a 20% market share in loan advances
and has a dominant presence in financial services. SBI performs a large portion of the day to day
banking business of the Central and State Government including public sector corporations and is
also the chief foreign exchange dealer for the Government and several public sector corporations.
It maintains 8,800 branches worldwide.
BANK OF BARODA LTD. ("BB") 3.1
BB is a government owned bank operating primarily in the industrialized western states of India.
Although the bank has had average operating statistics, it is expected to benefit from the banking
sector reforms announced in 1997.
</TABLE>
7
<PAGE>
INVESTMENT PORTFOLIO
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT MAY 31, 1998 (UNAUDITED)
- ---------------------------------------- ----------- ------------ --------
% OF
VALUE NET
DESCRIPTION SHARES US $ ASSETS
- ---------------------------------------- ----------- ------------ --------
<S> <C> <C> <C> <C>
EQUITIES (98.4%)
- ---------------------------------------- ----------- ------------ --------
INDIA (96.5%)
- ---------------------------------------- ----------- ------------ --------
AUTOS & TRANSPORT EQUIPMENT (10.6%)
Bajaj Auto Ltd. 251,000 3,713,775 4.3
Hero Honda Ltd. 100 2,598 0.0
Mahindra & Mahindra Ltd. 37,136 214,880 0.2
*Mahindra & Mahindra Ltd. GDR 54,000 268,650 0.3
*Pal Peugeot Ltd. 1,250,000 75,030 0.1
Punjab Tractors Ltd. 120,000 2,456,903 2.8
*Tata Engineering and Locomotive Co. Ltd. 53 310 0.0
TVS Suzuki Ltd. 200,000 2,527,011 2.9
- ---------------------------------------- ----------- ------------ --------
9,259,157 10.6
- ---------------------------------------- ----------- ------------ --------
BANKING & FINANCIAL SERVICES (13.7%)
Bank of Baroda Ltd. 1,178,400 2,687,827 3.1
Bank of India Ltd. 5,700 5,919 0.0
*Corporation Bank Ltd. 264,100 742,524 0.9
Federal Bank Ltd. 11,650 24,587 0.0
HDFC Bank Ltd. 471,000 781,984 0.9
Housing Development Finance Corp. 27,985 2,117,856 2.4
ICICI Banking Corporation Ltd. 1,800,000 1,787,035 2.0
State Bank of India Ltd. 511,650 2,972,852 3.4
20th Century Finance Corporation Ltd. 178 67 0.0
Vysya Bank Ltd. 199,750 843,602 1.0
- ---------------------------------------- ----------- ------------ --------
11,964,253 13.7
- ---------------------------------------- ----------- ------------ --------
BASIC MATERIALS (0.0%)
National Aluminum Ltd. 200 128 0.0
- ---------------------------------------- ----------- ------------ --------
BUILDING MATERIALS/CEMENT (1.3%)
Associated Cement Companies Ltd. 208 8,384 0.0
Gujarat Ambuja Cement Ltd. 15,325 110,476 0.1
Gujarat Ambuja Cement Ltd. GDR 150,000 993,750 1.2
*Jaiprakash Industries Ltd. 750 300 0.0
- ---------------------------------------- ----------- ------------ --------
1,112,910 1.3
- ---------------------------------------- ----------- ------------ --------
8
<PAGE>
INVESTMENT PORTFOLIO
- -------------------------------------------------------------------------------
AT MAY 31, 1998 (UNAUDITED)
- ---------------------------------------- ----------- ------------ --------
% OF
VALUE NET
DESCRIPTION SHARES US $ ASSETS
- ---------------------------------------- ----------- ------------ --------
BUSINESS & INDUSTRY SERVICES (5.8%)
NIIT Ltd. 37,300 1,491,104 1.7
Satyam Computers Ltd. 265,024 3,549,031 4.1
- ---------------------------------------- ----------- ------------ --------
5,040,135 5.8
- ---------------------------------------- ----------- ------------ --------
CHEMICALS (3.7%)
BOC Ltd. 200 237 0.0
Hi-Tech Drilling Services Ltd. 454,050 891,748 1.0
ICI (India) Ltd. 180,500 1,085,167 1.2
Indian Petrochemicals Corp. Ltd. 950 1,489 0.0
*Reliance Petroleum Ltd. 2,500,000 1,284,514 1.5
- ---------------------------------------- ----------- ------------ --------
3,263,155 3.7
- ---------------------------------------- ----------- ------------ --------
COMPUTERS (3.5%)
Aptech Ltd. 47,000 1,170,204 1.3
Infosys Technologies Ltd. 20,000 1,169,628 1.3
Software Solutions 55,000 508,403 0.6
*Tata Elxsi (India) Ltd. 200,000 212,245 0.3
- ---------------------------------------- ----------- ------------ --------
3,060,480 3.5
- ---------------------------------------- ----------- ------------ --------
CONSUMER PRODUCTS (11.7%)
Hindustan Lever Ltd. 267,295 10,223,293 11.7
COSMETICS (0.8%)
Colgate Palmolive (India) Ltd. 43,700 246,567 0.3
Indian Shaving Products Ltd. 25,000 468,787 0.5
- ---------------------------------------- ----------- ------------ --------
715,354 0.8
- ---------------------------------------- ----------- ------------ --------
ELECTRONICS & COMPONENTS (1.1%)
*IFB Industries Ltd. 175 87 0.0
Otis Elevator Co. (India) Ltd. 105,500 785,234 0.9
Unitech Ltd. 166,000 189,316 0.2
Videocon International Ltd. 100 389 0.0
- ---------------------------------------- ----------- ------------ --------
975,026 1.1
- ---------------------------------------- ----------- ------------ --------
9
<PAGE>
INVESTMENT PORTFOLIO (continued)
- -------------------------------------------------------------------------------
AT MAY 31, 1998 (UNAUDITED)
- ---------------------------------------- ----------- ------------ --------
% OF
VALUE NET
DESCRIPTION SHARES US $ ASSETS
- ---------------------------------------- ----------- ------------ --------
ENERGY (8.1%)
BSES Ltd. 550,000 2,247,539 2.6
Calcutta Electric Supply Company Ltd. 100 88 0.0
Gujarat Gas Ltd. 500 1,984 0.0
*Hindustan Oil Exportation Ltd. 647,400 740,663 0.8
Hindustan Petroleum Corporation Ltd. 407,900 3,594,221 4.1
Oil & Natural Gas Corporation Ltd. 83,900 507,026 0.6
- ---------------------------------------- ----------- ------------ --------
7,091,521 8.1
- ---------------------------------------- ----------- ------------ --------
FOOD & BEVERAGE (0.0%)
Cadbury India Ltd. 499 4,618 0.0
- ---------------------------------------- ----------- ------------ --------
HOTELS & TOURISM (2.1%)
Indian Hotels Co. Ltd. 50,000 621,849 0.7
*Indian Hotels Co. Ltd. GDR 108,750 1,196,250 1.4
- ---------------------------------------- ----------- ------------ --------
1,818,099 2.1
- ---------------------------------------- ----------- ------------ --------
MACHINERY (1.3%)
Carrier Aircon Ltd. 195,000 1,085,258 1.3
- ---------------------------------------- ----------- ------------ --------
MECHANICAL ENGINEERING (0.8%)
Cummins India Ltd. 70,000 668,907 0.8
- ---------------------------------------- ----------- ------------ --------
MEDIA (0.6%)
*New Delhi Television Ltd. (a) 324,335 545,101 0.6
- ---------------------------------------- ----------- ------------ --------
MISCELLANEOUS INDUSTRIALS (1.1%)
Larsen & Toubro Ltd. 1,470 9,025 0.0
*Namaste Exports Ltd. 100 11 0.0
Sundaram Fasteners Ltd. 112,900 967,037 1.1
- ---------------------------------------- ----------- ------------ --------
976,073 1.1
- ---------------------------------------- ----------- ------------ --------
PAINTS & RELATED PRODUCTS (0.8%)
Asian Paints India Ltd. 100,000 707,803 0.8
- ---------------------------------------- ----------- ------------ --------
10
<PAGE>
INVESTMENT PORTFOLIO (continued)
- -------------------------------------------------------------------------------
AT MAY 31, 1998 (UNAUDITED)
- ---------------------------------------- ----------- ------------ --------
% OF
VALUE NET
DESCRIPTION SHARES US $ ASSETS
- ---------------------------------------- ----------- ------------ --------
PHARMACEUTICALS (5.3%)
CIPLA 45,000 944,298 1.1
Dr. Reddy's Laboratories 50,000 545,918 0.6
Glaxo India Ltd. 100,300 939,184 1.1
Hoechst Marion Roussel 20,000 239,136 0.3
IPCA Laboratories Ltd. 255,000 996,122 1.1
Knoll Pharmaceuticals 25,150 501,188 0.6
Pfizer Ltd. 29,200 451,496 0.5
- ---------------------------------------- ----------- ------------ --------
4,617,342 5.3
- ---------------------------------------- ----------- ------------ --------
STEEL (0.1%)
Essar Gujarat Ltd. 1,123 643 0.0
Saw Pipes Ltd. 100 100 0.0
Tata Iron & Steel Co. Ltd. 31,198 112,433 0.1
- ---------------------------------------- ----------- ------------ --------
113,176 0.1
TELECOMMUNICATIONS (11.1%)
Finolex Cables Ltd. 100 416 0.0
Mahanagar Telephone Nigam Ltd. 500,000 2,746,699 3.1
*Mahanagar Telephone Nigam Ltd. GDR 130,000 1,706,250 2.0
Sterlite Industries India Ltd. 310 2,570 0.0
Videsh Sanchar Nigam Ltd. 165,000 3,565,426 4.1
*Videsh Sanchar Nigam Ltd. GDR 140,000 1,662,500 1.9
- ---------------------------------------- ----------- ------------ --------
9,683,861 11.1
- ---------------------------------------- ----------- ------------ --------
TEXTILES (4.9%)
Arvind Mills Ltd. 58 86 0.0
Century Textiles & Industries Ltd. 20 32 0.0
Coats Viyella India Ltd. 50 68 0.0
*Orkay Industries Ltd. 1,002 36 0.0
Raymond Ltd. 60,700 219,045 0.3
Raymond Ltd. GDR 40,000 250,000 0.3
Reliance Industries Ltd. 473,608 1,898,980 2.1
*Reliance Industries Ltd. GDR 250,000 1,906,250 2.2
- ---------------------------------------- ----------- ------------ --------
4,274,497 4.9
- ---------------------------------------- ----------- ------------ --------
11
<PAGE>
INVESTMENT PORTFOLIO (continued)
- -------------------------------------------------------------------------------
AT MAY 31, 1998 (UNAUDITED)
- ---------------------------------------- ----------- ------------ --------
% OF
VALUE NET
DESCRIPTION SHARES US $ ASSETS
- ---------------------------------------- ----------- ------------ --------
TOBACCO (7.8%)
ITC Ltd. 409,936 6,771,572 7.8
- ---------------------------------------- ----------- ------------ --------
TRADING/COMMERCE (0.0%)
*Altos India Ltd. 100 40 0.0
- ---------------------------------------- ----------- ------------ --------
TRANSPORT, UTILITIES, SERVICES (0.3%)
*Modi Luft Ltd. 3,134,400 267,158 0.3
- ---------------------------------------- ----------- ------------ --------
TOTAL INDIAN EQUITIES (96.5%)
(cost $87,650,470) 84,238,917 96.5
- ---------------------------------------- ----------- ------------ --------
PAKISTAN (1.9%)
- ---------------------------------------- ----------- ------------ --------
ENERGY (1.5%)
Hub Power Ltd. 500,000 246,622 0.3
*Hub Power Ltd. GDR 135,000 1,080,000 1.2
- ---------------------------------------- ----------- ------------ --------
1,326,622 1.5
- ---------------------------------------- ----------- ------------ --------
INVESTMENT COMPANIES (0.4%)
*Pakistan Investment Fund 100,000 312,500 0.4
- ---------------------------------------- ----------- ------------ --------
TOTAL PAKISTANI EQUITIES (1.9%)
(cost $4,733,271) 1,639,122 1.9
- ---------------------------------------- ----------- ------------ --------
TOTAL EQUITIES (98.4%)
(cost $92,383,741) 85,878,039 98.4
======================================== =========== ============ =========
</TABLE>
12
<PAGE>
INVESTMENT PORTFOLIO (concluded)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT MAY 31, 1998 (UNAUDITED)
- ------------------------------------------- ------------ ------------ --------
% OF
PRINCIPAL VALUE NET
DESCRIPTION AMOUNT US $ ASSETS
- ------------------------------------------- ------------ ------------ --------
<S> <C> <C> <C>
BONDS (2.0%)
- ------------------------------------------- ------------ ------------ --------
INDIA
- ------------------------------------------- ------------ ------------ --------
TEXTILES (2.0%)
Reliance Industries Ltd.
Convertible Bond, 3.50%, 11/3/99
(cost $1,760,457) $1,500,000 1,706,250 2.0
- ------------------------------------------- ------------ ------------ --------
TOTAL INVESTMENTS (100.4%)
(cost $94,144,198)(b) 87,584,289 100.4
=========================================== ============ ============ ========
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4)% (314,140) (0.4)
- ------------------------------------------- ------------ ------------ --------
NET ASSETS (100.0%) 87,270,149 100.0
=========================================== ============ ============ ========
</TABLE>
GDR--Global Depositary Receipt
*Non-income producing security
(a) Fair valued security, aggregating $545,101 or 0.6% of net assets. (See
Note 2).
(b) Aggregate cost for federal income tax purposes is substantially the same
as the cost for financial statement purposes. The aggregate unrealized
appreciation (depreciation) for all securities is as follows:
<TABLE>
<CAPTION>
<S> <C>
US $
- ------------------------------------ --------------
Excess of market value over tax cost 10,690,756
Excess of tax cost over market value (17,250,665)
- ------------------------------------ --------------
Net unrealized depreciation (6,559,909)
==================================== ==============
</TABLE>
See accompanying notes to financial statements
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
AT MAY 31, 1998 (UNAUDITED)
- -------------------------------------------------------------- --------------
US $
- -------------------------------------------------------------- --------------
ASSETS
- -------------------------------------------------------------- --------------
Investments at value (cost $94,144,198) 87,584,289
Cash (including Indian rupees with a cost and value of
$39,021) 772,343
Receivable for investments sold 3,605,913
Dividends and interest receivable 447,595
Deferred organizational costs and other assets 19,488
- -------------------------------------------------------------- --------------
TOTAL ASSETS 92,429,628
- -------------------------------------------------------------- --------------
LIABILITIES
- -------------------------------------------------------------- --------------
Loan payable 4,364,524
Payable for investments purchased 453,201
Payable to Investment Adviser 109,821
Payable to Administrators 25,484
Accrued expenses 206,449
- -------------------------------------------------------------- --------------
TOTAL LIABILITIES 5,159,479
- -------------------------------------------------------------- --------------
NET ASSETS 87,270,149
============================================================== ==============
Net assets consist of:
Common stock, $0.001 par value (100,000,000 shares authorized;
11,307,169 shares issued and outstanding) 11,307
Additional paid-in capital 150,999,610
Accumulated net investment loss (1,065,332)
Accumulated net realized loss (55,929,147)
Net unrealized depreciation of investments and other assets
and liabilities denominated in Indian rupees (6,746,289)
- -------------------------------------------------------------- --------------
NET ASSETS 87,270,149
============================================================== ==============
NET ASSET VALUE PER SHARE ($87,270,149 / 11,307,169) 7.72
============================================================== ==============
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
FOR THE SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)
- ----------------------------------------------------------- -------------
US $
- ----------------------------------------------------------- -------------
INVESTMENT INCOME
- ----------------------------------------------------------- -------------
Dividends 341,651
Interest 80,995
- ----------------------------------------------------------- -------------
TOTAL INVESTMENT INCOME 422,646
- -------------------------------------------------------------- --------------
EXPENSES
- ----------------------------------------------------------- -------------
Investment advisory fees 620,193
Custodian and accounting fees 310,455
Legal fees 118,562
Administration fees and expenses 111,010
Directors' fees and expense 37,874
Audit and tax services fees 30,672
Reports to shareholders 16,926
Interest expense 16,180
Insurance expense 14,518
New York Stock Exchange listing fee 12,097
Amortization of organizational costs 10,609
Transfer agent fees 7,462
Miscellaneous expenses 8,904
- ----------------------------------------------------------- -------------
TOTAL EXPENSES 1,315,462
- -------------------------------------------------------------- --------------
NET INVESTMENT LOSS (892,816)
=========================================================== =============
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
- ----------------------------------------------------------- -------------
NET REALIZED GAIN (LOSS) ON:
Investments (358,113)
Foreign currency transactions 140,388
NET CHANGE IN UNREALIZED DEPRECIATION OF:
Investments (3,003,715)
Other assets and liabilities denominated in foreign
currency (45,658)
- ----------------------------------------------------------- -------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS (3,267,098)
=========================================================== =============
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (4,159,914)
=========================================================== =============
</TABLE>
See accompanying notes to financial statements
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
MAY 31, 1998 ENDED
(UNAUDITED) NOVEMBER 30, 1997
US $ US $
- ------------------------------------------------- -------------- -----------------
<S> <C> <C>
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment loss (892,816) (1,535,303)
Net realized loss on investments and foreign
currency transactions (217,725) (1,559,686)
Net change in unrealized
appreciation/depreciation
of investments and other assets and liabilities
denominated in foreign currency (3,049,373) 17,401,889
- ------------------------------------------------- ----------- -------------
Net increase (decrease) in net assets
resulting from operations (4,159,914) 14,306,900
- ------------------------------------------------- ----------- -------------
NET ASSETS
Beginning of period 91,430,063 77,123,163
- ------------------------------------------------- ----------- -------------
End of period 87,270,149 91,430,063
================================================= =========== =============
</TABLE>
See accompanying notes to financial statements
16
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Selected data for a share of common stock outstanding throughout each period
is presented below.
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE PERIOD
ENDED MARCH 3, 1994*
MAY 31, 1998 FOR THE YEAR ENDED NOVEMBER 30, THROUGH
(UNAUDITED) -------------------------------- NOVEMBER 30, 1994
US $ US $ US $ US $ US $
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 8.09 6.82 7.74 15.41 13.95**
Offering costs charged to additional
paid-in capital -- -- -- -- (0.10)
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
8.09 6.82 7.74 15.41 13.85
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment loss (0.08) (0.13) (0.14) (0.16) (0.08)
Net realized and unrealized gain (loss) on
investments and other assets and
liabilities denominated in foreign
currency (0.29) 1.40 (0.78) (7.32) 1.64
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
Total from investment operations (0.37) 1.27 (0.92) (7.48) 1.56
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain on investments -- -- -- (0.12) --
In excess of net realized gain on
investments -- -- -- (0.07) --
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
Total distributions to Shareholders -- -- -- (0.19) --
- --------------------------------------------- -------------- --------- ---------- ---------- -----------------
NET ASSET VALUE, END OF PERIOD 7.72 8.09 6.82 7.74 15.41
============================================= ============== ========= ========== ========== =================
MARKET PRICE, END OF PERIOD 6.3125 6.625 6.375 9.00 13.75
============================================= ============== ========= ========== ========== =================
TOTAL INVESTMENT RETURN BASED ON (a)(b)
Net asset value (4.57)% 18.62% (11.89)% (48.96)% 11.26%
Market price (4.72)% 3.92% (29.17)% (33.48)% (1.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $87,270 $91,430 $77,123 $87,479 $174,285
Ratio of expenses to average net assets 2.86%+ 2.68% 3.28% 2.90% 2.29%+
Ratio of expenses to average net assets,
excluding interest expense 2.83%+ 2.35% 2.83% 2.35% --
Ratio of net investment loss to average
net assets (1.94)%+ (1.52)% (1.55)% (1.38)% (0.75)%+
Portfolio turnover rate 37% 53% 81% 49% 32%
Average commission rate paid per
share of common stock
investments purchased/sold (c) $0.0257 $0.0262 $0.0297 -- --
</TABLE>
- --------------
* Commencement of operations.
** Initial public offering price of $15.00 per share net of underwriting
discount of $1.05 per share.
+ Annualized.
(a) Total investment return is calculated assuming a purchase of common
stock on the opening of the first day and a sale on the closing of the
last day of each period reported. Dividends and distributions, if any,
are assumed for purposes of this calculation, to be reinvested at
prices obtained under the Fund's dividend reinvestment plan. Total
investment return does not reflect sales charges or brokerage
commissions. Generally, total investment return based on net asset
value will be higher than total investment return based on market price
in periods where there is an increase in the discount or a decrease in
the premium of the market price to the net asset value from the
beginning to the end of such periods. Conversely, total investment
return based on net asset value will be lower than total investment
return based on market value in periods where there is a decrease in
the discount or an increase in the premium of the market value to the
net asset value from the beginning to the end of such periods.
(b) Total investment return for a period of less than one year is not
annualized.
(c) Disclosure effective for fiscal years beginning on or after
September 1, 1995.
See accompanying notes to financial statements
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
AT MAY 31, 1998 (UNAUDITED)
1. ORGANIZATION AND CAPITAL
Jardine Fleming India Fund, Inc. (the "Fund") was incorporated in the
State of Maryland on January 5, 1994 after the sale of 7,169 shares to
Jardine Fleming International Management Inc. (the "Investment Adviser")
and is registered as a non-diversified, closed-end management investment
company under the Investment Company Act of 1940. The Fund commenced
operations on March 3, 1994 after issuing 10,750,000 shares of common
stock in its initial public offering. An additional 550,000 shares were
issued in connection with the exercise of the underwriters'
over-allotment option. Organizational costs of $135,644 have been
deferred and are being amortized on a straight-line basis over a 60-month
period from the date the Fund commenced operations.
The preparation of financial statements in accordance with generally
accepted accounting principles requires Fund management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund, which are in conformity with generally accepted accounting
principles.
I) SECURITY VALUATION
All securities for which market quotations are readily available are
valued at the last sales price prior to the time of determination,
or, if no sales price is available at that time, at the mean between
the last current bid and asked prices. Securities that are traded
over-the-counter are valued, if bid and asked quotations are
available, at the mean between the current bid and asked prices.
Investments in short-term debt securities having a maturity of 60
days or less are valued at amortized cost, which approximates market
value, or by amortizing their value on the 61st day prior to
maturity if their term to maturity from the date of purchase is
greater than 60 days. All other securities and assets are valued at
fair value as determined in good faith by or under the direction of
the Board of Directors.
II) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date the securities
are purchased or sold (the trade date). Realized gains and losses on
the sale of investments and foreign currency transactions are
determined on the identified cost basis. Interest income is recorded
on an accrual basis. Dividend income and other distributions are
recorded on the ex-dividend date, except for certain dividends which
are recorded as soon after the ex-dividend date as the Fund, using
reasonable diligence, becomes aware of such dividends.
III) FOREIGN CURRENCY TRANSLATION
The books and records of the Fund are maintained in US dollars.
Foreign currency amounts are translated into US dollars as follows:
o investments and other assets and liabilities denominated in
foreign currency at the prevailing rates of exchange on the
valuation date;
o purchases and sales of investments, income and expenses at the
prevailing rates of exchange on the respective dates of such
transactions.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- -------------------------------------------------------------------------------
The resulting net foreign currency gain or loss is included in the
Statement of Operations.
The Fund does not generally isolate that portion of the results of
operations arising as a result of changes in the foreign currency
exchange rates from fluctuations arising from changes in market
prices of securities. Accordingly, such foreign currency gain
(loss) is included in net realized and unrealized gain (loss) on
investments. However, the Fund does isolate the effect of
fluctuations in foreign currency rates when determining the gain or
loss upon the sale or maturity of foreign currency denominated debt
obligations pursuant to US federal income tax regulations; such
amount is categorized as foreign currency gain or loss for both
financial reporting and income tax reporting purposes.
Net foreign currency gain (loss) from valuing foreign currency
denominated assets and liabilities at the period end exchange rate
is reflected as a component of net unrealized depreciation of
investments and other assets and liabilities denominated in Indian
rupees. Net realized foreign currency gain (loss) is treated as
ordinary income (loss) for income tax reporting purposes.
IV) DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the
ex-dividend date. Dividends and distributions from net investment
income and net realized capital gains are determined in accordance
with federal income tax regulations, which may differ from generally
accepted accounting principles. These "book/tax" differences are
considered either temporary or permanent in nature. To the extent
these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net
investment income or net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends
in excess of net investment income or distributions in excess of net
realized gain on investments. To the extent they exceed net
investment income or net realized capital gain for tax purposes, they
are reported as distributions of additional paid-in capital.
3. INVESTMENT ADVISER AND ADMINISTRATORS
I) The Investment Adviser provides investment advisory services to the
Fund under the terms of an Investment Advisory Agreement. Under this
agreement, the Investment Adviser is paid a monthly fee at the
annual rate of 1.35% of the value of the Fund's average weekly net
assets.
II) Mitchell Hutchins Asset Management Inc. (the "Administrator"), a
wholly-owned subsidiary of PaineWebber Incorporated ("PaineWebber"),
provides administrative services to the Fund under an Administrative
Services Agreement. The Fund pays the Administrator a monthly fee at
the annual rate of 0.15% of the value of the Fund's average weekly
net assets up to $200 million and 0.10% of the value of such net
assets in excess of $200 million, subject to a minimum annual fee of
$200,000.
Multiconsult Ltd. (the "Mauritius Administrator") provides certain
administrative services relating to the operation and maintenance of
the Fund's Mauritius branch. The Mauritius Administrator is paid a
monthly fee of $1,500, a quarterly fee of $1,000, and receives
reimbursement for certain out-of-pocket expenses.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- -------------------------------------------------------------------------------
4. PORTFOLIO TRANSACTIONS
For the six months ended May 31, 1998, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were $40,969,388
and $32,178,080, respectively.
At May 31, 1998, the Fund owned securities valued at approximately
$4,600,000 which were in the process of being registered in the name of
the Fund. Indian securities regulations normally preclude the Fund from
selling such securities until the completion of the registration process.
5. US FEDERAL INCOME TAXES
The Fund intends to distribute all of its taxable income and to comply
with the other requirements of the US Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies. Accordingly, no
provision for US federal income taxes is required. In addition, by
distributing substantially all of its net investment income, realized
capital gains and certain other amounts, if any, during each calendar
year, the Fund intends not to be subject to US federal excise tax.
At November 30, 1997, the Fund had a capital loss carryforward of
$55,612,086 ($17,537,219 of which expires in the year 2003, $36,718,579
of which expires in the year 2004, and $1,356,288 of which expires in the
year 2005) available as a reduction, to the extent provided in the
regulations, of any future net realized capital gains. To the extent that
these losses are used to offset future capital gains, such gains will not
be distributed.
6. FOREIGN INCOME TAXES
The Fund conducts its investment activities in India as a tax resident of
Mauritius and expects to obtain benefits under the double taxation treaty
between Mauritius and India. To obtain benefits under the double taxation
treaty, the Fund must meet certain criteria and conditions including the
establishment of Mauritius tax residence and related requirements. The
Fund has obtained a certificate from the Mauritian authorities that it is
a resident of Mauritius under the double taxation treaty between
Mauritius and India. A fund which is a tax resident in Mauritius under
the treaty, but has no branch or permanent establishment in India, will
not be subject to capital gains tax in India on the sale of securities
but was subject to a 15% withholding tax on dividends declared,
distributed or paid by an Indian company prior to June 1, 1997, which has
been provided for by the Fund. Effective June 1, 1997, the Indian
government repealed the 15% withholding tax on dividends. Under Indian
tax law, no taxes shall be withheld on dividends declared, distributed or
paid by an Indian company after June 1, 1997. Rather, the company
distributing the dividend is liable for tax at the rate of 10% of the
dividend amount. The Fund is subject to and accrues 20% Indian
withholding tax on interest earned on Indian securities.
The Fund will pay tax in Mauritius on income distributions received from
the Fund's investments in India at rates which, when offset by the credit
available in respect of tax withheld in India on payment of income to the
Fund, will result in a net payment in Mauritius in respect of such
distributions at an effective rate of approximately 1%. For the six
months ended May 31, 1998, no provision for Mauritius taxes is considered
necessary as a result of the net investment loss incurred by the Fund.
The foregoing is based on current interpretation and practice and is
subject to future changes in Indian or Mauritius tax laws and in the tax
treaty between India and Mauritius.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
- -------------------------------------------------------------------------------
7. TRANSACTIONS WITH AFFILIATES
The Investment Adviser, out of its advisory fee, pays PaineWebber a fee
in an amount equal to 0.10% of the Fund's average weekly net assets in
consideration for certain consulting and support services (not including
advice or recommendations regarding the purchase or sale of investments).
For the six months ended May 31, 1998, $45,940 was paid or accrued by the
Investment Adviser to PaineWebber for such services. For the six months
ended May 31,1998, the Administrator, an affiliate of PaineWebber, earned
$99,726 in administration fees from the Fund.
For the six months ended May 31, 1998, the Fund paid approximately
$40,347 and $2,011 in brokerage commissions to Jardine Fleming India
Broking, (Pvt) Ltd. and Jardine Fleming Pakistan Broking (Pvt) Ltd.,
respectively, affiliates of the Investment Adviser.
The Fund has a multi-currency Revolving Credit Agreement (the "Credit
Agreement"), payable on demand, with Jardine Fleming Bank Limited ("JF
Bank"), an affiliate of the Investment Adviser. The maximum credit
available under the Credit Agreement is the lower of $15,000,000 or 20%
of the Fund's assets. Interest payments on borrowings are based on 1.75%
per annum over JF Bank's cost of funds. For the six months ended May 31,
1998, the weighted average interest rate paid by the Fund was 6.75% and
the maximum and average amount of the loan outstanding during the
borrowing period was $4,844,524 and $2,465,570, respectively. For the six
months ended May 31, 1998, $16,180 was paid or accrued by the Fund to JF
Bank for interest under the Credit Agreement. At May 31, 1998, $4,364,524
was outstanding pursuant to the Agreement.
8. CAPITAL STOCK
There were no transactions in capital stock for the six months ended May
31, 1998 or for the year ended November 30, 1997.
9. CONCENTRATION OF RISK
Investments in India may involve certain considerations and risks not
typically associated with investments in the US as a result of, among
other things, the possibility of future political and economic conditions
of developing countries and the level of Indian governmental supervision
and regulation of its securities markets. The ability of the issuers of
the debt securities held by the Fund to meet their obligations may be
affected by economic and political developments in a specific industry or
region.
21
<PAGE>
OTHER INFORMATION
- -------------------------------------------------------------------------------
ANNUAL SHAREHOLDERS' MEETING
The Fund's annual meeting of shareholders was held on May 14, 1998.
Shareholders voted to re-elect Ernest L. Rene Noel as a Director and ratified
the appointment of Price Waterhouse LLP as the Fund's independent accountants
for the fiscal year ending November 30, 1998. The resulting vote count for
each proposal is indicated below:
1. Election of Director:
Ernest L. Rene Noel For: 6,842,212
Withheld Authority: 97,162
In addition to the above re-elected Director, Julian M.I. Reid, Jean Jocelyn
de Chasteauneuf, Ashok V. Desai and Timothy R.H. Kimber continue to serve as
Directors of the Fund.
2. Ratification of Appointment of Price Waterhouse LLP as the Fund's
Independent Accountants:
For: 6,867,231
Against: 30,973
Abstain: 41,170
YEAR 2000 PROCESSING ISSUE
Many computer programs employed throughout the world use two digits rather
than four to identify the year. These programs, if not adapted, may not
correctly handle the change from "99" to "00" on January 1, 2000, and may not
be able to perform necessary functions. The Year 2000 issue affects virtually
all companies and organizations.
The Investment Adviser has advised the Fund that it has implemented and will
continue to implement steps intended to ensure that its computer systems are
capable of Year 2000 processing. In addition, the Investment Adviser is
inquiring with third parties to assess the adequacy of their Year 2000
compliance efforts. The Investment Adviser intends to develop contingency
plans intended to ensure that third-party noncompliance will not materially
affect the Fund's operations. Based on the Investment Adviser's reports, the
Fund does not currently anticipate that the Year 2000 issue will have an
adverse effect on the Investment Adviser's ability to continue to provide the
services currently provided to the Fund.
Companies in which the Fund invests could be adversely affected by the Year
2000 issue, but the Fund cannot predict the consequential effect on its
investment return. To the extent the impact on a portfolio holding is
negative, the Fund's investment return could be adversely affected.
22
<PAGE>
DIVIDEND REINVESTMENT PLAN
- -------------------------------------------------------------------------------
The Fund operates an optional Dividend Reinvestment Plan (the "Plan")
whereby:
1) shareholders may elect to receive income dividends and capital gain
distributions (collectively referred to as "distributions") in the
form of additional shares of the Fund (the "Share Distribution
Plan").
2) shareholders who do not participate in the Plan will receive all
distributions in cash paid by check in dollars mailed directly to the
shareholder by State Street Bank & Trust Company (the "Plan Agent"),
as dividend paying agent.
The following should be noted with respect to the Plan:
1) The Share Distribution Plan allows you to reinvest your distributions
into newly issued shares of the Fund with no brokerage charge or, if
the market price of the shares on the distribution date is below
their net asset value, have the Plan Agent purchase shares on your
behalf in the open market at a pro rata share of the brokerage
commission. Such distributions, if any, would most likely be declared
in December and paid and reinvested in January. Shareholders do not
pay a service charge to participate in this program.
2) Under the Share Distribution Plan, whenever the Board of Directors of
the Fund declares a distribution, you will automatically receive your
distribution in newly issued shares (cash will be paid in lieu of
fractional shares), if the market price of the shares on the date of
the distribution is at or above the net asset value ("NAV") of the
shares. The number of shares to be issued to you by the Fund will be
determined by dividing the amount of the cash distribution to which
you are entitled (net of any applicable withholding taxes) by the
greater of the NAV per share on such date or 95% of the market price
of a share on such date. Ifthe market price of the shares on such a
distribution date is below the NAV, the Plan Agent will, as agent for
the participants, purchase shares on the open market, on the New York
Stock Exchange or elsewhere, for the participant's account on, or
after, the payment date.
3) For US federal income tax purposes, shareholders electing to receive
newly issued shares pursuant to the Share Distribution Plan will be
treated as receiving income or capital gains in an amount equal to
the fair market value (determined as of the payment date) of the
shares received and will have a cost basis equal to such fair market
value. Shareholders receiving a distribution in the form of shares
purchased in the open market pursuant to the Share Distribution Plan
will be treated as receiving a distribution of the cash distribution
that such shareholder would have received had the shareholder not
elected to have such distribution reinvested and will have a cost
basis in such shares equal to the amount of such distribution.
4) There will be no brokerage charge to participants for shares issued
directly by the Fund under the Share Distribution Plan. Each
participant will pay a pro rata share of brokerage commissions
incurred with respect to the Plan Agent's open market purchases of
shares in connection with the Share Distribution Plan. The Fund will
pay fees of the Plan Agent for handling the Share Distribution Plan.
5) You may terminate your account under the Share Distribution Plan by
notifying the Plan Agent in writing. The Plan may be terminated by
the Plan Agent or the Fund with notice to you at least 30 days prior
to any record date for the payment of any distribution by the Fund.
Upon any termination, the Plan Agent will deliver a certificate or
certificates for the full shares held for you under the Plan and a
cash adjustment for any fractional shares.
This information is only a summary. To receive a copy of the Dividend
Reinvestment Plan brochure describing the full terms and conditions of the
Plan, please contact the Plan Agent at the following address or call
toll-free 800-426-5523.
State Street Bank & Trust Company
P.O. Box 8200
Boston, MA 02266-8200
USA
23
<PAGE>
DIRECTORS AND OFFICERS
Julian M.I. Reid -Director & President
Jean Jocelyn de Chasteauneuf -Director
Ashok V. Desai -Director
A. Douglas Eu -Director (appointed, effective July 17, 1998)
Timothy R.H. Kimber -Director
Ernest L. Rene Noel -Director
Brian S. Shlissel -Treasurer & Secretary
Stephanie M. Kleinman -Assistant Treasurer
INVESTMENT ADVISER
Jardine Fleming International Management Inc.
P.O. Box 3151
Road Town, Tortola
British Virgin Islands
ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, NY 10019
USA
MAURITIUS ADMINISTRATOR
Multiconsult Ltd.
P.O. Box 799
Les Jamalacs
Vieux Conseil Street
Port Louis
Mauritius
CUSTODIAN
Citibank, N.A.
New York:
Citicorp Center
153 East 53rd Street
New York, NY 10043
USA
India:
First Floor, Sakhar Bhawan
Nariman Point
230 Backbay Reclamation
Mumbai 400 021
India
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
USA
LEGAL COUNSEL
Cleary, Gottlieb, Steen & Hamilton
New York:
1 Liberty Plaza
New York, NY 10006
USA
Hong Kong:
39/F, Bank of China Tower
1 Garden Road
Hong Kong
REGISTRAR, TRANSFER AGENT &
DIVIDEND PAYING AGENT
State Street Bank & Trust Company
P.O. Box 8200
Boston, MA 02266-8200
USA
The financial information included herein is taken from the records of the
Fund without examination by independent accountants, who do not express
an opinion thereon.
This report, including the financial statements herein, is sent to the
shareholders
of the Fund for their information. It is not a prospectus, circular or
representation intended for use in the purchase or sale of shares of the Fund
or of any securities mentioned in this report.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that from time to time the Fund may
purchase shares of its common stock in the open market.
JARDINE FLEMING INDIA FUND, INC. LOGO
JARDINE FLEMING
INDIA FUND, INC.
Semi-Annual Report
May 31, 1998
