<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Contents
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Page
Objective 1
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Management 1
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Market Information 1
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Highlights 2
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Investment Review 3
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Major Holdings 6
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Investment Portfolio 8
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Statement of Assets and Liabilities 13
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Statement of Operations 14
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Statement of Changes in Net Assets 15
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Financial Highlights 16
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Notes to Financial Statements 17
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Report of Independent Accountants 21
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Other Information 22
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Dividend Reinvestment Plan 23
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<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
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$20.8 billion at
November 30, 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 ten years as of July 1999.
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:
- --------------------------------------------------------------------------------
o The Wall Street Journal (daily)
o The Asian Wall Street Journal (daily)
o Reuters (page JFIC)
o The New York Times (daily)
o Barron's (each Saturday)
THE NET ASSET VALUE PER SHARE IS CALCULATED WEEKLY AND PUBLISHED IN US DOLLARS
IN:
- --------------------------------------------------------------------------------
o The Wall Street Journal (under "Closed-End Funds" each Monday)
o The Asian Wall Street Journal (under "Publicly Traded Funds" each Monday)
o Reuters (page JFIC)
o South China Morning Post in Hong Kong (first Thursday of every month)
o The New York Times (each Sunday)
o 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.
--- 1 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Highlights
- --------------------------------------------------------------------------------------
AT AT
NOVEMBER 30, 1998 NOVEMBER 30, 1997
US $ US $
- --------------------------------------------------------------------------------------
<S> <C> <C>
Net Assets 73,826,868 91,430,063
Net Asset Value 6.53 8.09
MARKET DATA
Market Price on New York Stock Exchange 5.0625 6.625
Discount to Net Asset Value -22.5% -18.1%
TOTAL RETURN
Net Asset Value -19.3%(1) 18.6%(2)
Market Price -23.6%(1) 3.9%(2)
Bombay Stock Exchange ("BSE")
National 100 Index -26.4%(1) 11.2%(2)
</TABLE>
NET ASSET VALUE AND MARKET PRICE VS. BSE NATIONAL 100 INDEX(3)
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[LINE CHART]
(1) For the year ended November 30, 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.
--- 2 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Review
- --------------------------------------------------------------------------------
Dear Fellow Shareholders,
In previous reviews I have referred to the varied events in the Indian market
that have been responsible for a high level of price volatility and, once
again, I need to refer to such events with respect to the performance of your
Fund this past year. Such events would include, in the first half of the
financial year, the fall of the United Front government, the general elections,
the nuclear detonations and the continuing impact of East Asia's financial
crisis across the balance of Asia. Each of these events has affected market
sentiment as reflected in both stock prices and the value of the Rupee, India's
currency. In the second half of the financial year, ending November 30, such
events have included an uninspiring budget, better than expected economic
results from a narrow sector of the market as well as encouraging election
results, at the State level, for the Congress-I party, now led by Mrs. Sonia
Gandhi.
The net result of these events over the Fund's full financial year was
disappointing, more so when compared with the gains achieved in the major
western markets over the same period. The Bombay Stock Exchange Index (the
BSE-100) declined 26.4%, while the Rupee lost 9% of its value versus the US
dollar, resulting in a 35.4% contraction in the total return over the fiscal 12
months when measured in US dollars. Over the same period, the net asset value
per share was reduced by 19.3%.
Although India escaped the currency meltdowns of its Asian neighbors, it has
experienced an economic slowdown. While the government continues to forecast 6%
gross domestic product ("GDP") growth for the year to March 1999, the private
sector consensus points to a figure closer to 5%. The primary cause for this
slowdown is a reduction in export growth, which has declined from over 20%
growth two years ago to a likely absolute fall this year. Since exports are
about 11% of GDP, the fall in their growth by itself is sufficient to explain
the decline in the overall growth rate of some 2%. Such a slowdown in exports
has been due almost entirely to the slower growth of world trade caused by the
collapse of the East Asian economies. As a further example of the magnitude of
the slowdown, industrial growth this fiscal year is forecast at 4% compared to
more than 13% achieved in 1995. Further, foreign exchange reserves which were
buoyant owing to foreign investment inflows until 1997, and were shored up by
the issue of Resurgent India Bonds to Indians abroad after the nuclear
explosions in May 1998, are now likely to come under pressure as foreign
investment declines. The vehicles industry--commercial vehicles, cars and
motorcycles--continues to suffer, and the commodity sectors--steel, other
metals and chemicals--have also performed poorly. The best performance has been
put up by the software industry , whose exports continue to boom as Year 2000
approaches, and the consumer goods sector.
--- 3 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Review (continued)
- --------------------------------------------------------------------------------
One of the most evident benefits emerging from this tougher economic climate
are the corporate restructurings presently taking place. In the same way as
corporate America restructured in the Reagan years and Britain did in the time
of Mrs. Thatcher, so captains of Indian industry are forging tighter and
sharper companies to face a more challenging future. Senior managements are
focusing on core businesses, uneconomic or peripheral activities are being
sold, production capacity is being re-sited to more favorable, lower-cost
locations, and work forces are being rationalized. While not an immediate
solution, such actions have achieved most favorable results in the western
world in the recent past, and should contribute to a similar strengthening of
Indian industry.
Politically, the low point of India's year was the nuclear detonations in May.
While the government adopted the policies inherited from its predecessor, the
approaching closure of the Comprehensive Test Ban Treaty combined with the need
to capitalize on India's investment in nuclear weapons over many years, perhaps
further forced its hand. As a result of these actions, India was condemned by
virtually the entire world. A further less direct result has been that, for the
first time since the opening of the market to foreign investors, India has
faced a year of net portfolio divestment.
The general elections of last May gave the Bharatiya Janata Party ("BJP") more
seats than the Congress-I party, although the BJP's share of votes was lower;
the BJP formed a coalition government together with a number of regional
parties. However, recent elections in four states indicated a strong swing to
the Congress-I party, which wrested power from the BJP in Delhi and Rajasthan
and retained power in Madhya Pradesh. This swing will be retested at the end of
1999 when more state elections are due; if the Congress-I continues to do well,
its return to majority rule in 2003, or sooner, would become likely. Following
its recent defeats, the BJP appears to be reconsidering its nationalist agenda
and is returning to long-shelved reforms, such as amendments to the patent laws
and the opening of the insurance industry to the private sector. On the other
hand, the Congress-I party appears to be recovering from the loss of confidence
caused by defeats in the general elections of 1996 and 1998. While it might be
premature for an immediate change of government, the foundations are now in
place for Congress-I to offer an effective alternative to the Hindu
nationalists in the medium-term.
Providing a forecast in the current conditions is more difficult: but while
foreign investors almost unanimously adopt a bearish stance, there are some
grounds for a contrarian view. There are bright spots: the investments of your
Fund are in outstanding entities by almost any measure, and particularly when
compared in
--- 4 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Review (concluded)
- --------------------------------------------------------------------------------
terms of return-on-equity and growth-to-price-earnings-multiples. Equally,
managements' ability to contend with the adversities, and to increase
shareholder value, is laudable. Your Fund's overweight positions in the
pharmaceutical, high technology, and consumer goods sectors, all of which have
recently demonstrated better than expected results, have resulted in the Fund's
outperformance of its benchmark.
Going forward, we are certain that your investment manager will continue to
identify sound investment opportunities through diligent company visits. While
investment in India carries a high currency and political risk, we hope to
offset this by our choice of quality companies.
A further area of positive development has been in the stock market where
improved trading and settlement mechanisms have not only increased liquidity
and streamlined the settlement process, but also have increased the overall
level of transparency. The settlement problems of the mid-1990's are now a
thing of the past. This progress has resulted in global asset allocators taking
greater notice of India as is evidenced by the larger number of foreign
investors registering with the Indian authorities.
The investment strategy of the Fund for 1999 is to invest only in the best
companies in India. Equally, on your behalf, we will seek out new investments
and re-evaluate existing companies that are embracing restructuring. Finally,
we will scrutinize trends in commodities, as a recovery in prices will surely
be accompanied, even preceded, by a recovery in share prices within the
cyclical sector. Your Fund manager anticipates that the Indian economy should
exhibit signs of a recovery during this year.
We thank all our shareholders for their continued interest in the Fund.
Respectfully Submitted
/s/ Julian M.I. Reid
Julian M.I. Reid
President
January 18, 1999
--- 5 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Major Holdings
- --------------------------------------------------------------------------------------------------------
AT NOVEMBER 30, 1998
% of
Company Net Assets
- --------------------------------------------------------------------------------------------------------
<S> <C>
HINDUSTAN LEVER LTD. ("HL") 10.2
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. 7.4
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 its core business,
thereby is increasing ITC's already strong cash flows.
SATYAM COMPUTERS LTD. ("SC") 6.7
SC is a totally integrated IT solutions provider, selling its services to clients all
over the world. By utilizing India's large pool of inexpensive yet talented
computer engineers, the company is able to provide cost effective solutions to
major IT problems such as Euro- conversion and Y2K reprogramming. Annualized
sales growth rates for SC exceed 50%.
VIDESH SANCHAR NIGAM LTD. ("VSN") 5.0
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") 4.7
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.
</TABLE>
--- 6 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Major Holdings (concluded)
- -------------------------------------------------------------------------------------------------------
AT NOVEMBER 30, 1998
% of
Company Net Assets
- -------------------------------------------------------------------------------------------------------
<S> <C>
TVS SUZUKI LTD. ("TVS") 4.6
TVS is a southern based manufacturer of motorcycles and scooters. Since near bankruptcy
in the early 1990's, it has evolved into India's second largest two wheeler manufacturer
with an outstanding distribution system and management renowned for marketing savvy.
BAJAJ AUTO LTD. 3.8
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.
GLAXO INDIA LTD. 3.7
A 51% subsidiary of Glaxo Wellcome UK, Glaxo India is the leader in the domestic
pharmaceutical market. Growth has been boosted by acquisitions and increasing exports.
The presence of greater patent protection in India bodes well for Glaxo's future product
line.
HINDUSTAN PETROLEUM CORPORATION LTD. ("HPC") 3.3
HPC is an integrated oil company, operating refining as well as marketing facilities.
Though it has joint ventures with various international oil companies, HPC remains
majority owned by the Indian Government. Future earnings will be boosted by sector
deregulation.
INFOSYS TECHNOLOGIES LTD. 3.3
Infosys is considered to be India's premier integrated IT solutions provider. Management
is renowned for its emphasis on customer relations, transparency, and generating
shareholder returns. Future growth rates of 50% are expected due to global demand for
cost effective software solutions.
</TABLE>
--- 7 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
% of
Value Net
Description Shares US $ Assets
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITIES (96.0%)
- --------------------------------------------------------------------------------
INDIA (96.0%)
- --------------------------------------------------------------------------------
AUTOS & TRANSPORT EQUIPMENT (11.1%)
Bajaj Auto Ltd. 220,050 2,804,888 3.8
Hero Honda Ltd. 200 2,563 0.0
Pal Peugeot Ltd.* 300 9 0.0
Punjab Tractors Ltd. 103,000 1,999,888 2.7
Tata Engineering and Locomotive Co. Ltd.* 153 430 0.0
TVS Suzuki Ltd. 270,000 3,400,364 4.6
- --------------------------------------------------------------------------------
8,208,142 11.1
BANKING & FINANCIAL SERVICES (6.3%)
Bank of Baroda Ltd. 18,400 21,779 0.0
Bank of India Ltd. 100 50 0.0
Corporation Bank Ltd. 44,800 86,643 0.1
Federal Bank Ltd. 1,050 974 0.0
HDFC Bank Ltd. 575,700 693,598 1.0
Housing Development Finance Corp. 31,985 1,637,748 2.2
ICICI Banking Corporation Ltd. 884,900 505,004 0.7
State Bank of India Ltd. 270,600 956,442 1.3
Vysya Bank Ltd. 225,000 731,858 1.0
- --------------------------------------------------------------------------------
4,634,096 6.3
BUILDING MATERIALS/CEMENT (0.8%)
Associated Cement Companies Ltd. 360 7,468 0.0
Gujarat Ambuja Cement Ltd. 15,200 78,392 0.1
Madras Cements Ltd. 5,000 469,704 0.7
- --------------------------------------------------------------------------------
555,564 0.8
CHEMICALS (2.5%)
BOC Ltd. 200 146 0.0
Hi-Tech Drilling Services Ltd. 450,050 656,367 0.9
ICI (India) Ltd. 143,500 680,766 0.9
Reliance Petroleum Ltd.* 1,309,900 526,052 0.7
- --------------------------------------------------------------------------------
1,863,331 2.5
</TABLE>
--- 8 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Portfolio (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
% of
Value Net
Description Shares US $ Assets
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTERS (18.0%)
Aptech Ltd. 155,760 1,365,369 1.8
DSQ Software Ltd. 120,000 641,992 0.9
Infosys Technologies Ltd. 44,000 2,412,870 3.3
NIIT Ltd. 63,500 2,046,078 2.8
Satyam Computers Ltd. 403,024 4,971,544 6.7
Software Solutions Ltd. 65,000 862,494 1.1
Tata Elxsi (India) Ltd.* 231,400 279,060 0.4
Tata Infotech 23,000 740,424 1.0
- --------------------------------------------------------------------------------
13,319,831 18.0
CONSUMER PRODUCTS (12.7%)
Hindustan Lever Ltd. 200,694 7,513,063 10.2
Ponds (India) Ltd. 67,000 1,835,498 2.5
- --------------------------------------------------------------------------------
9,348,561 12.7
COSMETICS (0.7%)
Indian Shaving Products Ltd. 28,000 512,917 0.7
ELECTRONICS & COMPONENTS (3.5%)
Bharat Heavy Electricals Ltd. 310,000 1,705,073 2.3
IFB Industries Ltd.* 150 21 0.0
Otis Elevator Co. (India) Ltd. 100,000 657,586 0.9
Unitech Ltd. 245,000 247,417 0.3
- --------------------------------------------------------------------------------
2,610,097 3.5
ENERGY (3.8%)
BSES Ltd. 3,246 11,069 0.0
Calcutta Electric Supply Company Ltd. 100 61 0.0
Gujarat Gas Ltd. 200 897 0.0
Hindustan Oil Exportation Ltd.* 700,000 381,400 0.5
Hindustan Petroleum Corporation Ltd. 425,000 2,428,429 3.3
- --------------------------------------------------------------------------------
2,821,856 3.8
</TABLE>
--- 9 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Portfolio (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
% of
Value Net
Description Shares US $ Assets
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
FOOD & BEVERAGE (0.4%)
Britannia Ltd. 18,100 328,376 0.4
Cadbury India Ltd. 186 1,683 0.0
- --------------------------------------------------------------------------------
330,059 0.4
HOTELS & TOURISM (2.3%)
Indian Hotels Co. Ltd. 50,000 488,199 0.7
Indian Hotels Co. Ltd. GDR 125,000 1,179,688 1.6
- --------------------------------------------------------------------------------
1,667,887 2.3
MACHINERY (0.7%)
Carrier Aircon Ltd. 110,000 539,408 0.7
MECHANICAL ENGINEERING (0.4%)
Cummins India Ltd. 40,000 256,834 0.4
MEDIA (0.7%)
New Delhi Television Ltd.* (a) 324,335 533,195 0.7
MISCELLANEOUS INDUSTRIALS (0.9%)
Larsen & Toubro Ltd. 190 651 0.0
Namaste Exports Ltd.* 100 6 0.0
Sundaram Fasteners Ltd. 85,000 638,798 0.9
- --------------------------------------------------------------------------------
639,455 0.9
PAINTS & RELATED PRODUCTS (0.7%)
Asian Paints India Ltd. 75,000 524,894 0.7
PHARMACEUTICALS (10.7%)
CIPLA Ltd. 66,700 1,281,758 1.8
Dr. Reddy's Laboratories Ltd. 90,300 877,976 1.2
Glaxo India Ltd. 210,050 2,739,086 3.7
Hoechst Marion Roussel Ltd. 63,950 608,261 0.8
IPCA Laboratories Ltd. 290,000 802,983 1.1
Knoll Pharmaceuticals Ltd. 78,400 828,098 1.1
Pfizer Ltd. 42,600 761,357 1.0
- --------------------------------------------------------------------------------
7,899,519 10.7
</TABLE>
--- 10 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Portfolio (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
% of
Value Net
Description Shares US $ Assets
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
STEEL (0.0%)
Essar Gujarat Ltd.* 150 50 0.0
Saw Pipes Ltd. 100 74 0.0
Tata Iron & Steel Co. Ltd. 2,280 4,594 0.0
- --------------------------------------------------------------------------------
4,718 0.0
TELECOMMUNICATIONS (9.7%)
Mahanagar Telephone Nigam Ltd. 841,500 3,482,205 4.7
Sterlite Industries India Ltd. 310 925 0.0
Videsh Sanchar Nigam Ltd. 220,000 3,668,389 5.0
- --------------------------------------------------------------------------------
7,151,519 9.7
TEXTILES (2.4%)
Orkay Industries Ltd.*(a) 952 0 0.0
Raymond Ltd. 69,935 126,139 0.2
Reliance Industries Ltd. 623,480 1,642,895 2.2
- --------------------------------------------------------------------------------
1,769,034 2.4
TOBACCO (7.4%)
ITC Ltd. 339,951 5,450,952 7.4
TRADING/COMMERCE (0.0%)
Altos India Ltd.* 100 14 0.0
--------------------------------------------------------------------------------
</TABLE>
--- 11 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Investment Portfolio (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AT NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
Shares/ % of
Principal Value Net
Description Amount US $ Assets
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORT, UTILITIES, SERVICES (0.3%)
Modi Luft Ltd.* 3,134,400 220,836 0.3
TOTAL INDIAN EQUITIES (96.0%)
(cost $80,342,446) 70,862,719 96.0
- --------------------------------------------------------------------------------
PAKISTAN (0.0%)
- --------------------------------------------------------------------------------
ENERGY (0.0%)
Hub Power Ltd.* (cost $1,361) 1,900 552 0.0
TOTAL EQUITIES
(cost $80,343,807) 70,863,271 96.0
================================================================================
TIME DEPOSIT (3.5%)
- --------------------------------------------------------------------------------
Citibank Guam
4.775% 12/01/98 (cost $2,600,000) $2,600,000 2,600,000 3.5
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.5%)
(cost $82,943,807) (b) 73,463,271 99.5
================================================================================
OTHER ASSETS LESS LIABILITIES (0.5%) 363,597 0.5
NET ASSETS (100.0%) 73,826,868 100.0
================================================================================
</TABLE>
GDR--Global Depositary Receipt
* Non-income producing security
(a) Fair valued security, aggregating $533,195 or 0.7% of net assets
(b) Aggregate cost for federal income tax purposes is $83,271,809. The
aggregate unrealized appreciation (depreciation) for all securities is as
follows:
<TABLE>
<CAPTION>
US $
- -----------------------------------------------------
<S> <C>
Excess of market value over tax cost 8,792,519
Excess of tax cost over market value (18,601,057)
- -----------------------------------------------------
Net unrealized depreciation (9,808,538)
=====================================================
</TABLE>
See accompanying notes to financial statements
--- 12 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
- ----------------------------------------------------------------------------------------
AT NOVEMBER 30, 1998
- ----------------------------------------------------------------------------------------
US $
- ----------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------
<S> <C>
Investments at value (cost $82,943,807) 73,463,271
Cash (including Indian rupees with a cost of $35,225 and value of $35,207) 552,158
Receivable for investments sold 516,270
Dividends and interest receivable 185,673
Deferred organizational costs and other assets 24,284
- ----------------------------------------------------------------------------------------
TOTAL ASSETS 74,741,656
LIABILITIES
- ----------------------------------------------------------------------------------------
Payable for investments purchased 506,120
Payable to Investment Adviser 85,062
Payable to Administrators 22,840
Accrued expenses 300,766
- ----------------------------------------------------------------------------------------
TOTAL LIABILITIES 914,788
- ----------------------------------------------------------------------------------------
NET ASSETS 73,826,868
========================================================================================
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 149,756,173
Accumulated net investment loss (172,516)
Accumulated net realized loss (66,249,632)
Net unrealized depreciation of investments and other assets
and liabilities denominated in Indian rupees (9,518,464)
- ----------------------------------------------------------------------------------------
NET ASSETS 73,826,868
========================================================================================
NET ASSET VALUE PER SHARE ($73,826,868 (divided by) 11,307,169) 6.53
========================================================================================
</TABLE>
See accompanying notes to financial statements
--- 13 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Statement of Operations
<TABLE>
- ---------------------------------------------------------------------------------
<S> <C>
FOR THE YEAR ENDED NOVEMBER 30, 1998
- ---------------------------------------------------------------------------------
US $
- ---------------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------------
Dividends (Net of foreign withholding taxes of $15,755) See Note 6 1,133,372
Interest 134,865
- ---------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,268,237
EXPENSES
- ---------------------------------------------------------------------------------
Investment advisory fees 1,148,674
Custodian and accounting fees 530,436
Administration fees and expenses 226,630
Legal fees 140,522
Directors fees and expenses 94,055
Audit and tax services fees 77,334
Interest expense 35,071
Reports to shareholders 34,496
New York Stock Exchange listing fee 24,260
Insurance expense 23,732
Amortization of organizational costs 21,276
Transfer agent fees 15,329
Miscellaneous expenses 19,076
- ---------------------------------------------------------------------------------
TOTAL EXPENSES 2,390,891
- ---------------------------------------------------------------------------------
NET INVESTMENT LOSS (1,122,654)
=================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
- ---------------------------------------------------------------------------------
NET REALIZED LOSS ON:
Investments (10,538,210)
Foreign currency transactions (120,783)
NET CHANGE IN UNREALIZED DEPRECIATION OF:
Investments (5,924,342)
Other assets and liabilities denominated in foreign currency 102,794
- ---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS (16,480,541)
=================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (17,603,195)
=================================================================================
</TABLE>
See accompanying notes to financial statements
--- 14 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
US $ US $
- ------------------------------------------------------------------------------------------
<S> <C> <C>
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment loss (1,122,654) (1,535,303)
Net realized loss on investments and foreign
currency transactions (10,658,993) (1,559,686)
Net change in unrealized appreciation/depreciation
of investments and other assets and liabilities
denominated in foreign currency (5,821,548) 17,401,889
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (17,603,195) 14,306,900
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of year 91,430,063 77,123,163
- ------------------------------------------------------------------------------------------
End of year 73,826,868 91,430,063
==========================================================================================
</TABLE>
See accompanying notes to financial statements
--- 15 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
<TABLE>
<CAPTION>
Financial Highlights
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Selected data for a share of common stock outstanding throughout each period is presented below.
FOR THE YEAR ENDED NOVEMBER 30, FOR THE PERIOD
----------------------------------------------------- MARCH 3, 1994*
THROUGH
1998 1997 1996 1995 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)
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8.09 6.82 7.74 15.41 13.85
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INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment loss (0.10) (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 (1.46) 1.40 (0.78) (7.32) 1.64
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Total from investment operations (1.56) 1.27 (0.92) (7.48) 1.56
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DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gain on investments -- -- -- (0.12) --
In excess of net realized gain on investments -- -- -- (0.07) --
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Total distributions to Shareholders -- -- -- (0.19) --
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NET ASSET VALUE, END OF PERIOD 6.53 8.09 6.82 7.74 15.41
=========================================================================================================================
MARKET PRICE, END OF PERIOD 5.063 6.625 6.375 9.00 13.75
=========================================================================================================================
TOTAL INVESTMENT RETURN BASED ON: (a)(b)
Net asset value (19.28)% 18.62% (11.89)% (48.96)% 11.26%
Market price (23.58)% 3.92% (29.17)% (33.48)% (1.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $73,827 $91,430 $77,123 $87,479 $174,285
Ratio of expenses to average net assets 2.81% 2.68% 3.28% 2.90% 2.29%+
Ratio of expenses to average net assets,
excluding interest expense 2.77% 2.35% 2.83% 2.35% --
Ratio of net investment loss to average
net assets (1.32)% (1.52)% (1.55)% (1.38)% (0.75)%+
Portfolio turnover rate 73% 53% 81% 49% 32%
</TABLE>
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* 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.
See accompanying notes to financial statements
--- 16 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Notes to Financial Statements
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AT NOVEMBER 30, 1998
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.
--- 17 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Notes to Financial Statements (continued)
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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 (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 foreign currency. 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. As a result
of permanent book/tax differences, $1,243,437 has been reclassified
from accumulated net investment loss to additional paid-in capital
relating to the net investment and net realized foreign currency loss
during the year ended November 30, 1998. Net assets were not affected
by this reclassification.
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 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 Fund's average weekly net assets up to
$200 million and 0.10% 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.
--- 18 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Notes to Financial Statements (continued)
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4. PORTFOLIO TRANSACTIONS
For the year ended November 30, 1998, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were $64,003,746
and $58,782,807, respectively.
At November 30, 1998, the Fund owned securities valued at approximately
$2,652,000 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 INCOMETAXES
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, 1998, the Fund had a capital loss carryforward of
$66,084,000 ($17,537,219 of which expires in the year 2003, $36,718,579 in
2004, $1,356,288 in 2005 and $10,471,914 in 2006) 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 of 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 with respect to tax withheld in India on payment of income to
the Fund, will result in a net payment in Mauritius with respect to such
distributions at an effective rate of approximately 1%. For the year ended
November 30, 1998, no provision for Mauritian 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 Mauritian tax laws and in the tax
treaty between India and Mauritius.
--- 19 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Notes to Financial Statements (concluded)
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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 value 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 year ended November 30, 1998, $85,087 was paid or
accrued by the Investment Adviser to PaineWebber for such services. For
the year ended November 30, 1998, the Administrator, an affiliate of
PaineWebber, earned $200,000 in administration fees from the Fund.
For the year ended November 30, 1998, the Fund paid approximately $75,678
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 year ended November 30, 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 $2,527,632, respectively. For the year ended
November 30, 1998, $35,071 was paid or accrued by the Fund to JF Bank for
interest under the Credit Agreement. At November 30, 1998, no amount was
outstanding pursuant to the Credit Agreement. In addition, at November 30,
1998 the Fund had $35,225 in a bank account with JF Bank.
The Fund has a multi-currency Revolving Credit Agreement (the
"Agreement"), payable on demand, with Robert Fleming & Co. Limited ("RF"),
an affiliate of the Investment Adviser. The maximum credit available under
the Agreement is the lower of $10,000,000 or 25% of the Fund's net assets.
Interest payments on borrowings are based on RF's cost of funds. During
the year ended November 30, 1998, the Fund did not have any borrowings
pursuant to the Agreement.
8. CAPITAL STOCK
There were no transactions in capital stock for the years ended November
30, 1998 and 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.
--- 20 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Report of Independent Accountants
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To the Shareholders and Board of Directors of
Jardine Fleming India Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Jardine Fleming India Fund, Inc.
(the "Fund") at November 30, 1998, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the four years in
the period then ended and for the period March 3, 1994 (commencement of
operations) through November 30, 1994, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
January 21, 1999
--- 21 ---
<PAGE>
JARDINE FLEMING
INDIA FUND, INC.
Other Information
- --------------------------------------------------------------------------------
Since November 30, 1997 there have been no (i) material changes in the Fund's
investment objectives or policies, (ii) changes in the Fund's charter or
by-laws, (iii) material changes in the principal risk factors associated with
investment in the Fund, or (iv) change in the person primarily responsible for
the day-to-day management of the Fund.
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 Fund is inquiring with third
parties to assess the adequacy of their Year 2000 compliance efforts. The Fund
has developed contingency plans intended to ensure that third-party
noncompliance will not materially affect the Fund's operations. Based on
reports provided by its service providers, the Fund does not currently
anticipate that the Year 2000 issue will have an adverse effect on its ability
to continue its operations.
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>
JARDINE FLEMING
INDIA FUND, INC.
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. If
the 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
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
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.
- --------------------------------------------------------------------------------
Annual Report
November 30, 1998
[GRAPHIC]
