India Capital Growth Fund Limited Daily NAV Estimate and Deferred Tax Provision (0680H)

TIDMIGC

RNS Number : 0680H

India Capital Growth Fund Limited

30 July 2021

30 July 2021

India Capital Growth Fund Limited (the "Company" or "ICGF")

Deferred tax provision for Indian Capital Gains Tax

The Company is subject to capital gains tax in India on the growth in value of its investment portfolio. Although this additional tax is only payable at the point at which the underlying investments are sold and profits crystallised, the Company must provision for this additional cost, albeit the actual capital gains tax payable may differ significantly from this provision and may not crystallise in the future.

For the year to 31 December 2020 no provision was necessary, but following significant investment capital gains since that date and a review from the India Tax Agent of the unrealised Indian capital gains tax ("CGT") attributable to the investment portfolio of the Company as at 30 June 2021, the Company must accrue a deferred tax provision of GBP3.42m, equivalent to a reduction in the Net Asset Value ("NAV") per share of 3.04p or 2.4% of the NAV at 30 June 2021.

From today the deferred tax provision on Indian capital gains of the investment portfolio will also be reflected in the daily NAV estimate which will be disclosed both before the tax provision and after the tax provision to facilitate a meaningful comparison of investment performance.

Estimated Daily Net Asset Value ("NAV") statement as at 29 July 2021

The Company announces its Net Asset Value before Indian CGT per ordinary share as at 29 July 2021 was estimated to be 130.54 pence.

The Company announces its Net Asset Value after Indian CGT per ordinary share as at 29 July 2021 was estimated to be 126.96 pence.

This estimated daily NAV is provided by the Investment Manager of the Company and is, by its nature, based on incomplete and estimated data. The making of such an estimate involves known and unknown risks, uncertainties and other factors which may cause the estimated results, performance, or achievements to be different from any actual results, performance, or achievements.

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July 30, 2021 04:40 ET (08:40 GMT)