31 July 2015 31 July 2014
Notes £'000 £'000
265,847 214,468
8 876 704
27,498 12,914
28,374 13,618
294,221 228,086
9 (1,129) (822)
(1,129) (822)
293,092 227,264
Net assets attributable to shareholders
Notes to the financial statements are on pages 85 to 88.
Creditors Total liabilities Liabilities
Balance sheet
as at 31 July 2015
Assets
Portfolio of investments Debtors
Cash and bank balances Total other assets Total assets
1.
2.
31 July 2015 31 July 2014
£'000 £'000
31 July 2015 31 July 2014
£'000 £'000
31 July 2015 31 July 2014
£'000 £'000
Payable to the Depositary, associates of the Depositary, and agents of either of them:
Depositary's fees Expenses
Payable to the ACD, associates of the ACD, and agents of either of them:
ACD's periodic charge Front end load income Total revenue
Interest from bank deposits Overseas taxable revenue Overseas non-taxable revenue Net capital gains
Revenue
Forward foreign exchange currency contracts Currency gains/(losses)
Accounting basis and policies
Please see pages 10 to 12 for accounting basis and policies.
Net capital gains
The net capital gains during the year comprise:
Non-derivative securities
Notes to the Financial Statements
as at 31 July 2015
First State Indian Subcontinent Fund
Notes to the Financial Statements
(continued) as at 31 July 2015First State Indian Subcontinent Fund
5.
31 July 2015 31 July 2014
£'000 £'000
31 July 2015 31 July 2014
£'000 £'000
Details of the distribution per share is set out in the Distribution tables on pages 89 to 90.
Total finance costs
Add: revenue deducted on cancellation of shares Deduct: revenue received on issue of shares Net distributions for the year
Interest from bank deposits Final distribution
Finance costs
The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprises:
Factors that may affect future tax charges:
At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of £4,746,523 (31/07/14: £3,887,482) this relates to surplus management expenses. No deferred tax asset was recognised in the current or prior year as it was considered unlikely the Fund would generate sufficient taxable profits in the future to utilise these amounts.
Deferred taxation:
There is no provision required for deferred taxation at the Balance sheet date in the current or prior year.
Current tax charge for year (note 5a)
OEICs are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation.
*As an authorised OEIC these items are not subject to corporation tax.
Indian capital gains tax
Movement in excess management expenses Irrecoverable overseas tax
Overseas non-taxable revenue*
Net expenses before taxation Corporation tax of 20% (2014: 20%) Effects of:
Factors affecting current tax charge for the year:
The tax assessed for the year is higher than (2014: higher than) the standard rate of corporation tax in the UK for an OEIC of 20% (2014:
20%). The differences are explained below:
Total current tax (note 5b) Indian capital gains tax Irrecoverable overseas tax Analysis of charge in year:
Taxation
Notes to the Financial Statements
(continued) as at 31 July 2015First State Indian Subcontinent Fund
8.
31 July 2015 31 July 2014
£'000 £'000
31 July 2015 31 July 2014
£'000 £'000
31 July 2015 31 July 2014 31 July 2015 31 July 2014
£'000 £'000 £'000 £'000
75,877 26,235 92,694 66,554
75,877 26,235 92,694 66,554
159 46 (149) (100)
104 31 (108) (71)
263 77 (257) (171)
76,140 26,312 92,437 66,383
11.
12.
(a)
The main risk arising from the Fund’s financial instruments is market price risk. Market price risk arises mainly from uncertainty about future prices of the financial instruments held. Investment risk in the portfolio is regularly reviewed and controlled through the adoption of parameters limiting exposures to various factors such as industries, countries, and company size.
The Fund has little exposure to credit or cash flow risk. Certain transactions in securities that the Fund enters into expose it to the risk that the counter-party will not deliver the investment (purchase) or cash (sale) after the Fund has fulfilled its responsibilities. The Fund only buys and sells investments through brokers which have been approved by the ACD as an acceptable counter-party. This list is reviewed quarterly.
The Fund’s assets comprise mainly realisable securities which can be readily sold in normal market conditions.
The Fund’s main liability is the redemption of any shares that investors wish to sell. In general, the ACD manages the cash to ensure that it can meet its liabilities. Assets from a fund may need to be sold if insufficient cash is available to finance such redemptions. The Fund’s holdings are reviewed on a regular basis, with particular emphasis on the market capitalisation of the issuer (securities issued by larger capitalised companies generally have greater liquidity), and the number of days it would take to trade out of a given securities position or percentage of the Fund as a whole (determined by reference to available market trading volumes). Funds that have a higher concentration of securities which are deemed to be less liquid are regularly monitored.
As a proportion of the Fund’s investment portfolio is invested in overseas securities the Balance sheet can be affected by movements in foreign exchange rates. The Investment Manager may seek to manage exposure to currency movements by using forward foreign exchange contracts or by hedging the sterling value of investments that are priced in other currencies. Income received in other currencies is converted to sterling on or near the date of receipt.
The market value of investments is taken to equal fair value for the purposes of Financial Reporting Standard 29. Given all the activities of Derivatives and other financial instruments
General
In pursuing its investment objectives the Fund holds equity shares.
Contingent liabilities and commitments
As at 31 July 2015, the Fund had no contingent liabilities (31/07/14: £nil) and no commitments (31/07/14: £nil).
Total costs
Total net trades in the year after transaction costs Trades in the year before transaction costs Commissions
Taxes
Portfolio transaction costs Analysis of total trade costs:
Purchases Sales
Non-derivative securities Total creditors
Creditors
Purchases awaiting settlement
Amounts payable for cancellation of shares Accrued expenses
Total debtors
Amounts receivable for issue of shares Accrued revenue
Debtors
Sales awaiting settlement
Notes to the Financial Statements
(continued) as at 31 July 2015First State Indian Subcontinent Fund
12.
Currency £'000 £'000 £'000 £'000 £'000 £'000
Bangladeshi taka 6 5,779 5,785 7 1,812 1,819
Euro 382 - 382 247 - 247
Indian rupee 1,110 242,392 243,502 824 205,257 206,081
Sri Lankan rupee 22 16,598 16,620 - 7,399 7,399
US dollar 24,284 1,078 25,362 - -
-25,804 265,847 291,651 1,078 214,468 215,546
13.
The net asset value of each share class, the net asset value per share and the number of shares in each class are given in the Performance Share class B Accumulation (USD share class) (Institutional):
Share class A Accumulation (EUR share class) (Retail):
Share class B Accumulation (Institutional):
The Fund has four share classes in issue.
The ACD's periodic charge on each share class is as follows:
Share class A Accumulation (Retail):
Share classes
First State Investments (UK) Limited, ("the ACD") is a related party to the Fund as defined by Financial Reporting Standard 8 ‘Related Party Disclosures’. By virtue of the regulations governing OEICs, the ACD is party to every transaction in respect of shares of the Fund, which are summarised in the ‘Statement of Change in Net Assets attributable to Shareholders’. Amounts due at the year end in respect of issues and cancellations are included in the Balance Sheet.
Amounts paid to First State Investments (UK) Limited in respect of ACD fees are disclosed in note 4, with £380,148 (31/07/14: £310,510) due at the year end.
As at 31 July 2015 Commonwealth Bank of Australia (UK) Staff Pension Scheme, a related party of the ACD, owned 0.01% (31/07/14:
0.01%) of the Net Asset Value of the Fund.
Related parties
Analysis of the Fund's currency exposure
The following summarises the Sterling value of currencies of the Fund in which the investments, including cash, debtors and creditors, are denominated.
As at 31 July the Fund had the following net currency exposure (excluding sterling):
Net foreign currency assets Net foreign currency assets
31 July 2015 31 July 2014
As at 31 July 2015, 9.38% (31 July 2014: 5.68%) of the Fund's assets were interest bearing.
Fair value of financial assets and financial liabilities
There is no material difference between the value of the financial assets and liabilities, as shown in the Balance sheet, and their fair value.
Interest rate risk
The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates.
Derivatives and other financial instruments (continued)
Net
-Share class A Accumulation (EUR share class)
This share class is in deficit and therefore not making a distribution.
Share class B Accumulation
This share class is in deficit and therefore not making a distribution.
Final - Shares purchased between 1 February 2015 and 31 July 2015 Share class A Accumulation
This share class is in deficit and therefore not making a distribution.
Group 2 Interim - Shares purchased between 1 August 2014 and 31 January 2015 Final - Shares purchased prior to 1 February 2015
Distribution in pence and cents per share