10-K/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-K/A

Annual Report Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

                                                                                                                                       For the fiscal year ended                                                                                                                                                                                                                                                                           Commission file number 0-5534

                                                                                                                                           December 31, 2011

BALDWIN & LYONS, INC.

(Exact name of registrant as specified in its charter)

Indiana (State or other jurisdiction of Incorporation or organization	35-0160330 (I.R.S. Employer Identification No.)
1099 North Meridian Street, Indianapolis, Indiana (Address of principal executive offices)	46204 (Zip Code)

Registrant's telephone number, including area code:  (317) 636-9800

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:

(Title of class)

Class A Common Stock, No Par Value

Class B Common Stock, No Par Value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    

Yes ­___ No ü

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ­___ No ü

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ­ü   No ___

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K._____  ­    

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ____    Accelerated filer ü    Non-accelerated filer ____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ­___ No ü

The aggregate market value of Class A and Class B Common Stock held by non-affiliates of the Registrant as of June 30, 2011, based on the closing trade prices on that date, was approximately $199,155,221.

The number of shares outstanding of each of the issuer's classes of common stock as of March 1, 2012:

Common Stock, No Par Value:                                                                Class A (voting)                                            2,623,109 shares

                                     Class B (nonvoting)                                    12,225,348 shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for Annual Meeting of Shareholders held on May 8, 2012 are incorporated by reference into Part III.

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EXPLANATORY NOTE

This Amendment No. 1 to Form 10-K (“Amendment”) amends the Annual Report on Form 10-K for the fiscal year ended December 31, 2011, originally filed on March 14, 2012 (the “Original 10-K”), of Baldwin & Lyons, Inc. (the “Company” “we” and “our”).  We are filing this Amendment to amend Item 15 of the Original 10-K to include the separate financial statements of the New Vernon India Fund LP (“India Fund”) for its fiscal years ended December 31, 2011, 2010, and 2009, respectively, as new Exhibits 99.1, 99.2, and 99.3 in response to Regulation S-X Rule 3-09.  We are also including the separate but related financial statements of the NVH I LP for its six month periods ended December 31, 2011, 2010, and 2009, respectively and for its six month periods ended June 30, 2011, 2010, and 2009 as new Exhibits 99.4, 99.5, 99.6, 99.7, 99.8 and 99.9, respectively, which should be read in conjunction with the India Fund’s financial statements.  The financial statements of the India Fund and NVH I LP as of and for the periods ended December 31, 2011 were not available at the time that we filed the Original 10-K.

In connection with the filing of this Amendment, the currently dated certifications from our Chief Executive Officer and our Chief Financial Officer are attached as exhibits hereto.

Item 15 is the only portion of the Original 10-K being supplemented or amended by this Amendment.  Except as described above, this Amendment does not amend, update or change the financial statements of the Company or any other items or disclosures contained in the Original 10-K and does not otherwise reflect events occurring after the original filing date of the Original 10-K.  Accordingly, this Amendment should be read in connection with the Company's filings with the Securities and Exchange Commission subsequent to the filing of the Original 10-K.

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PART IV

 Item 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Item 15 of the Original 10-K is amended by the addition of the following exhibits:

EXHIBIT INDEX

Exhibit
Number	Description
31.1	Certification by Chief Executive Officer and President Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Executive Vice President and Chief Financial Officer Persuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Chief Executive Officer and President and by Executive Vice President and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, Adopted Persuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	New Vernon India Fund LP Financial Statements for the year ended December 31, 2011
99.2	New Vernon India Fund LP Financial Statements for the year ended December 31, 2010
99.3	New Vernon India Fund LP Financial Statements for the year ended December 31, 2009
99.4	NVH I LP Financial Statements for the six months ended December 31, 2011
99.5	NVH I LP Financial Statements for the six months ended December 31, 2010
99.6	NVH I LP Financial Statements for the six months ended December 31, 2009
99.7	NVH I LP Financial Statements for the six months ended June 30, 2011
99.8	NVH I LP Financial Statements for the six months ended June 30, 2010
99.9	NVH I LP Financial Statements for the six months ended June 30, 2009

 All other schedules to the consolidated financial statements required by Article 7 and Article 5 of Regulation S-X are not required under the related instructions or are inapplicable and therefore have been omitted.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BALDWIN & LYONS, INC.

July 9, 2012	By__/s/ Joseph J. DeVito_____________________________________
		Joseph J. DeVito, Director, Chief Executive Officer and President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

July 9, 2012	By__/s/ Gary W. Miller_____________________________________
		Gary W. Miller, Director and Executive Chairman

July 9, 2012	By_/s/ G. Patrick Corydon______________________________________
		G. Patrick Corydon, Executive Vice President and CFO (Principal Financial and Accounting Officer)

July 9, 2012	By__/s/ Joseph J. DeVito_____________________________________
		Joseph J. DeVito, Director, Chief Executive Officer and President

July 9, 2012	By__/s/ Stuart D. Bilton_____________________________________(*)
		Stuart D. Bilton, Director

July 9, 2012	By__/s/ Otto N. Frenzel IV_____________________________________(*)
		Otto N. Frenzel IV, Director

July 9, 2012	By__/s/ John M. O'Mara_____________________________________(*)
		John M. O'Mara, Director

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SIGNATURES (CONTINUED)

July 9, 2012	By__/s/ Thomas H. Patrick_____________________________________(*)
		Thomas H. Patrick, Director

July 9, 2012	By__/s/ John Pigott_____________________________________(*)
		John Pigott, Director

July 9, 2012	By__/s/ Kenneth D. Sacks_____________________________________(*)
		Kenneth D. Sacks, Director

July 9, 2012	By__/s/ Nathan Shapiro_____________________________________(*)
		Nathan Shapiro, Director

July 9, 2012	By__/s/ Norton Shapiro_____________________________________(*)
		Norton Shapiro, Director

July 9, 2012	By__/s/ Robert Shapiro_____________________________________(*)
		Robert Shapiro, Director

July 9, 2012	By__/s/ Steven A. Shapiro_____________________________________(*)
		Steven A. Shapiro, Director

July 9, 2012	By__/s/ John D. Weil_____________________________________(*)
		John D. Weil, Director

(*) By Craig C. Morfas, Attorney-in-Fact

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EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, Joseph J. DeVito, certify that:

1. I have reviewed this annual report on Form 10-K/A of Baldwin & Lyons, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 9, 2012

/s/ Joseph J. DeVito

Joseph J. DeVito

Chief Executive Officer and President

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EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, G. Patrick Corydon, certify that:

1. I have reviewed this annual report on Form 10-K/A of Baldwin & Lyons, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 9, 2012

/s/ G. Patrick Corydon

G. Patrick Corydon

Executive Vice President and Chief Financial Officer

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EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Baldwin & Lyons, Inc. (the "Company") on Form 10-K/A for the annual period ending December 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Joseph J. DeVito, Chief Executive Officer and President of the Company, and G. Patrick Corydon, Executive Vice President and Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jospeh J. DeVito

Joseph J. DeVito

Chief Executive Officer and President

July 9, 2012

/s/ G. Patrick Corydon

G. Patrick Corydon

Executive Vice President and Chief Financial Officer

July 9, 2012

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EX-99.3 OTHER FIN ST

New Vernon India Fund LP

(a Delaware limited partnership)

Financial Statements

For the year ended December 31, 2011

New Vernon India Fund LP

(a Delaware limited partnership)

Index

December 31, 2011

Page(s)

Report of Independent Auditors 1

Financial Statements

Statement of Assets, Liabilities and Partners’ Capital 2

Statement of Operations 3

Statement of Changes in Partners’ Capital 4

Statement of Cash Flows 5

Notes to Financial Statements 6–11

Report of Independent Auditors

To the Partners of New Vernon India Fund LP

(a Delaware limited partnership)

In our opinion, the accompanying statement of assets, liabilities and partners’ capital, and the related statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of New Vernon India Fund LP at December 31, 2011, and the results of its operations, the changes in its partners’ capital and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 30, 2012

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New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Assets, Liabilities and Partners' Capital
December 31, 2011
(in U.S. dollars)
Assets
Investment in NVH I LP, at fair value	$	579,567,833
Withdrawals receivable from NVH I LP		53,607,865
Total assets	$	633,175,698
Liabilities and Partners' Capital
Liabilities
Capital withdrawals payable	$	53,607,865
Total liabilities		53,607,865
Commitments and Contingencies (Note 7)
Partners' Capital
General partner		66,590,367
Limited partners		512,977,466
Total partners' capital		579,567,833
Total liabilities and partners' capital	$	633,175,698

The accompanying notes are an integral part of these consolidated financial statements.

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New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Operations
For the Year ended December 31, 2011
(in U.S. dollars)
Investment income (loss)
Net investment income (loss) allocated from NVH I LP
Dividends	$	6,812,226
Interest		10,238
Management fees		(9,664,274	)
Professional fees and other expenses		(1,540,631	)
Net investment loss allocated from NVH I LP		(4,382,441	)
Partnership expenses
Management fees		5,712,718
Total Partnership expenses		5,712,718
Net investment loss		(10,095,159	)
Realized and unrealized gain (loss) on investments allocated from NVH I LP
Net realized gain (loss) on
Investments in securities		(20,159,712	)
Investments in securities sold short		(389,895	)
Derivative transactions (including equity access products and futures contracts)		(11,670,025	)
Foreign currency transactions (including forward foreign currency contracts)		(123,359	)
Net realized loss		(32,342,991	)
Net change in unrealized appreciation (depreciation) on
Investments in securities		(216,060,313	)
Investments in securities sold short		287,290
Derivative transactions (including equity access products and futures contracts)		(8,366,015	)
Foreign currency transactions (including forward foreign currency contracts)		262,925
Net change in unrealized depreciation		(223,876,113	)
Net realized loss and change in unrealized depreciation on investments
allocated from NVH I LP		(256,219,104	)
Net decrease in partners' capital resulting from operations	$	(266,314,263	)

The accompanying notes are an integral part of these consolidated financial statements.

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New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Changes in Partners' Capital
For the Year ended December 31, 2011
(in U.S. dollars)
	General Partner			Limited Partners			Total
Partners' capital, December 31, 2010	$	102,599,117		$	792,608,124		$	895,207,241
Capital contributions		5,000,000			14,300,000			19,300,000
Capital withdrawals		(6,533,198	)		(62,091,947	)		(68,625,145	)
Pro-rata allocation of net decrease in partners'
capital resulting from operations		(32,845,096	)		(233,469,167	)		(266,314,263	)
Change in incentive allocation accrued		(1,630,456	)		1,630,456			-
Partners' capital, December 31, 2011	$	66,590,367		$	512,977,466		$	579,567,833

 

The accompanying notes are an integral part of these consolidated financial statements.

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New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Cash Flows
For the Year ended December 31, 2011
(in U.S.dollars)
Cash flows from operating activities
Net decrease in partners' capital resulting from operations	$	(266,314,263	)
Adjustments to reconcile net decrease in partners' capital resulting from operations to net
cash provided by operating activities:
Contributions for investment in NVH I LP		(19,300,000	)
Withdrawals of investment in NVH I LP		83,080,658
Management fees paid by NVH I LP on behalf of New Vernon India Fund LP		5,712,718
Allocation from NVH I LP
Net investment loss		4,382,441
Net realized and unrealized loss		256,219,104
Net cash provided by operating activities		63,780,658
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		13,300,000
Capital withdrawals, net of change in capital withdrawals payable		(83,080,658	)
Net cash used by financing activities		(69,780,658	)
Net decrease in cash and cash equivalents		(6,000,000	)
Cash and cash equivalents
Beginning of year		6,000,000
End of year	$	-

The accompanying notes are an integral part of these consolidated financial statements.

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New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

1.Organization

New Vernon India Fund LP (the “Partnership”), is a Delaware limited partnership which commenced operations on October 12, 2004.  The Partnership is governed by its Fourth Amended and Restated Limited Partnership Agreement dated December 15, 2011 (the “Partnership Agreement”).  The Partnership’s stated primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies and other assets through the master/feeder structure described below.

The Partnership invests substantially all of its assets through a “master fund/feeder fund” structure.  The Partnership invests the capital it receives in NVH I LP (the “Master Fund”), a Cayman Islands exempted limited partnership.  The Master Fund has the same stated investment objectives as the Partnership.  The Master Fund’s stated investment objectives and structure are detailed in Note 1 of the Master Fund’s notes to its financial statements (the “Master Fund’s Notes”).  The value of the Partnership’s investment in the Master Fund is included in the statement of assets, liabilities and partners’ capital and reflects the Partnership’s proportionate interest in the total partners’ capital of the Master Fund (57.98% at December 31, 2011).  The performance of the Partnership is directly affected by the performance of the Master Fund and the allocation of net investment income/loss and net realized and unrealized gains/losses from the Master Fund is reflected in the statement of operations.  The consolidated financial statements of the Master Fund for the periods ended December 31, 2011 and June 30, 2011, including their consolidated condensed schedules of investments, are attached to this report and should be read in conjunction with the Partnership’s financial statements.

The investment manager of the Partnership and the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists the General Partner with certain administrative functions.  The General Partner of the Partnership and the Master Fund is New Vernon Management LLC, a Delaware limited liability company.

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Partnership in the preparation of its financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements.  In particular, estimates are made relating to the fair value of the Partnership's investment in the Master Fund.  Actual results could differ from those estimates and such differences could be material to the Partnership's financial statements.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

The Partnership records its investment in the Master Fund at fair value, which is represented by the Partnership’s proportionate interest in the partners’ capital of the Master Fund.

Valuation of the investments of the Master Fund, including disclosures relating to the authoritative guidance on fair value measurements and disclosures is discussed in Note 2 of the Master Fund's Notes.  At December 31, 2011 the Master Fund held level 3 fair valued investments of $328,407,593 which represented 32.85% of its total partners' capital.  Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the Partnership’s financial statements.

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New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

Income and Expense/Incentive Allocation Recognition

The Partnership records its proportionate share of the Master Fund’s investment income, expenses, and realized and unrealized gains and losses.  The Master Fund’s policy with respect to income and expense recognition and allocation of net profits and net losses are discussed in Note 2 of the Master Fund’s Notes.

During the year ended December 31, 2011, all expenses were recorded by the Master Fund and allocated to the Partnership based on its proportionate share of the Master Fund, except for direct management fees charged by the Partnership.

The incentive allocation and any change in incentive allocation associated with unrealized appreciation or depreciation on the Master Fund's Designated Investments are recorded on the accrual basis.

Foreign Currency Translation

The books and records of the Partnership are maintained in U.S. Dollars.  The foreign currency translation policy of the Master Fund is discussed in Note 2 of the Master Fund’s Notes.

Income Taxes

As a partnership, the Partnership itself is not subject to U.S. Federal, State and Local income taxes; each Partner is individually liable for income taxes, if any, on its share of the Partnership’s net taxable income.  Interest, dividends and other income realized by the Partnership from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Partnership files U.S. Federal income tax returns as well as in various states. With few exceptions, the Partnership is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Partnership by the Internal Revenue Service or any other taxing authority.

The Partnership follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Partnership is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Partnership recording a tax liability that would reduce partners’ capital.  The Partnership did not have any unrecognized tax benefits resulting from tax positions related to either the year ended December 31, 2011 or prior years.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

The Master Fund’s tax policy, including discussion of the India/Mauritius tax treaty and tax treatment in Singapore, is discussed in the Master Fund’s Notes.  There are no interest and penalties related to uncertain tax positions recognized in the statement of operations.

Capital Contributions and Withdrawals

Contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the year, but based upon year-end partners’ capital values, are reflected as capital withdrawals payable at the end of the year.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

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New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

3.Related Party Transactions

Management Fee

The Partnership pays the Investment Manager, in the aggregate (including management fees paid by the Master Fund on the Limited Partner’s behalf), a quarterly management fee, prior to the expiration of the three year lock-up provision discussed in Note 4, of 0.5% (2% annually) of each Limited Partner’s quarter end capital account balance and 0.5% (2% annually) of each Limited Partner’s quarter end unfunded capital commitments.  After the expiration of the “lock-up” period, the management fee will be a quarterly amount equal to 0.5% (2% annually) of each Limited Partner’s capital account balance.  Management fees are only charged on the cost basis or written down value of Designated Investments, whichever is lower.  If additional contributions are made to the Partnership during the quarter, the fee will be prorated and charged at the time of such contribution.

Total management fees incurred directly by the Partnership were $5,712,718.  In addition, management fees allocated to the Partnership from the Master Fund were $9,664,274.  Master Fund level management fees are discussed in Note 5 of the Master Fund's Notes.

Incentive Allocation

The General Partner is entitled to an annual incentive allocation from the Partnership.  The incentive allocation is charged at the end of the year and is 20% of the net increase in partners’ capital resulting from operations (before the incentive allocation) except that any net gains attributable to Designated Investments are not subject to the incentive allocation until realized.  The General Partner accrues an incentive allocation of 20% of the net unrealized appreciation of Designated Investments.  If a partner withdraws capital before the end of the fiscal year, an incentive allocation will be charged based on any interim period increase in partners’ capital resulting from operations.  The incentive allocation charged is subject to a “high water mark” as fully described in the Partnership Agreement.  The incentive allocation is only charged at the Partnership level and not at the Master Fund level.  For the year ended December 31, 2011, the change in incentive allocation accrued is $(1,630,456), and the cumulative incentive allocation accrued at December 31, 2011 is $36,363.  Because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately allocated to the General Partner.

4.Partners’ Capital Accounts

Partnership Interests

Limited partnership interests may be purchased on the first business day of each quarter or at such other times as determined by the General Partner in its sole discretion.  The General Partner may “close” the Partnership by refusing to issue any interests, without notice to the Limited Partners and may, in its sole discretion, reopen the Partnership as of any date.

Capital Commitments and Contributions

Each subscriber for Partnership interests must make a capital commitment equal to a minimum of $3 million at the time of subscription, subject to the General Partner’s right to accept lesser amounts.  Upon the expiration of the “lock-up” period (described below), each Limited Partner may notify the General Partner, upon ninety days’ prior notice, that it no longer desires to participate in future capital calls or wishes to only participate to a smaller degree.

The Limited Partners make capital contributions in respect of their capital commitments as needed to fund investments and to pay Master Fund and Partnership expenses.  At December 31, 2011, the Partnership has total capital commitments of $669,793,100 which were fully funded.

- 8 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

Withdrawals

The Limited Partners are subject to a “lock-up” period, whereby they may not withdraw any portion of their interest in the Partnership unless such portion has been invested with the Partnership for a period of not less than 36 months from the initial contribution.  Following the “lock-up” period, a Limited Partner may, upon written request (and subject to the limitations related to Designated Investments), withdraw all or a portion of its interest as of the last business day of each calendar year.  A Limited Partner may not withdraw any interest assigned to a Designated Investment until that investment is sold or liquidated.  At December 31, 2011, Limited Partners’ capital amounting to approximately $298,000,000 is eligible for withdrawal, of which approximately $57,000,000 consists of individual members of the General Partner or entities controlled by such individuals.  Requests for withdrawals must be received by the General Partner at least 90 days prior to the effective withdrawal date.  The next eligible date Limited Partners’ capital will be available for withdrawal is December 31, 2012.

Capital withdrawals payable in the statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2011.

Under extraordinary circumstances, as determined by the General Partner, the Partnership may delay payment to the Limited Partner requesting withdrawal, in which event payment for withdrawal will be made to the Limited Partner as soon thereafter as it is practicable.

Distributions

Partnership profits will be automatically reinvested.  Distributions, if any, may be made to the Limited Partners at the sole discretion of the General Partner.

Allocation of Net Profits and Net Losses

Net investment income (losses) and net realized and unrealized gains (losses) on investments are allocated to each Limited Partner in accordance with the Partnership Agreement pro-rata based on their respective capital account balances subject to the incentive allocation by the General Partner.  As discussed in Note 3, because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately be allocated to the General Partner.

5.Administrator

The Partnership entered into an administration agreement with Citi Hedge Fund Services North America, Inc. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator has sole responsibility for the administration of the Partnership’s affairs, except with respect to the investment advisory responsibilities performed by the General Partner and custodial activities which are performed by the Master Fund’s prime brokers.  These administrative responsibilities include, among other things, maintaining the Partnership’s books and records and handling capital transactions.  The cost of these administrative services is borne by the Master Fund and the Partnership bears a portion through its direct interest in the Master Fund.

- 9 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

6.Risks

At December 31, 2011, the Partnership’s assets were invested in the Master Fund and as such, the Partnership is highly concentrated in, and directly and materially affected by the performance and actions of the Master Fund.

Off-balance sheet, market, credit and liquidity risks are discussed in the Master Fund’s financial statements.

Due to the nature of the “master fund/feeder fund” structure, the Partnership may be materially affected by the actions of other entities investing in the Master Fund as well as the Partnership’s individual investors.  As discussed in the Master Fund’s Notes, there are two other entities directly invested in the Master Fund at December 31, 2011, one of which has two Limited Partners as additional feeder funds with indirect interests in the partners’ capital of the Master Fund.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund and the Partnership.  The Partnership could be materially affected by the actions and liquidity of the Investment Manager.

Restrictions on limited partners withdrawals are discussed in Note 4.  Off-balance sheet, market and credit risks of the Master Fund’s investments are discussed in the Master Fund’s Notes.

7.Commitments and Contingencies

In the normal course of business, the Partnership enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Partnership’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred.  The General Partner expects the risks of loss to be remote.

Unfunded commitments of the Master Fund are described in the Master Fund’s Notes.

8.Financial Highlights

The following financial highlights are for the year ended December 31, 2011.  Such results are not predictive of future performance.

Total return before incentive allocation(1)	(29.36	)%
Incentive allocation(3)	0.21	%
Total return after incentive allocation	(29.15	)%
Supplemental data
Ratio of total expenses to weighted average Limited Partners’ capital(2)	2.14	%
Incentive allocation(3)	(0.23	)%
Ratio of total expenses and incentive allocation to weighted average Limited Partners’ capital(2)	1.91	%
Ratio of net investment loss to weighted average Limited Partners’ capital(2) (4)	(1.28	)%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions, participation in Designated Investments and Feeder Fund level income and expenses and incentive allocation.

(2)These ratios reflect income and expenses inclusive of the Partnership’s share of income and expenses allocated from the Master Fund.  These ratios are calculated based on average limited partners’ capital.

(3)Comprised of and change in accrued incentive allocation.

(4)The net investment loss ratio does not include the effect of the incentive allocation.

- 10 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2011

9.Subsequent Events

The Partnership has performed an evaluation of subsequent events through March 30, 2012, which is the date the financial statements were available to be issued, and there were no subsequent events to disclose.

- 11 -

EX-99.3 OTHER FIN ST

New Vernon India Fund LP

(a Delaware limited partnership)

Financial Statements

For the year ended December 31, 2010

New Vernon India Fund LP

(a Delaware limited partnership)

Index

December 31, 2010

Page(s)

Report of Independent Auditors 1

Financial Statements

Statement of Assets, Liabilities and Partners’ Capital 2

Statement of Operations 3

Statement of Changes in Partners’ Capital 4

Statement of Cash Flows 5

Notes to Financial Statements 6–11

Report of Independent Auditors

To the Partners of New Vernon India Fund LP

(a Delaware limited partnership)

In our opinion, the accompanying statement of assets, liabilities and partners’ capital, and the related statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of New Vernon India Fund LP at December 31, 2010, and the results of its operations, the changes in its partners’ capital and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 30, 2011

- 1 -

New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Assets, Liabilities and Partners' Capital
December 31, 2010
(in U.S. dollars)
Assets
Investments in NVH I LP, at fair value	$	895,207,241
Withdrawals receivable from NVH I LP		68,063,378
Cash and cash equivalents		6,000,000
Total assets	$	969,270,619
Liabilities and Partners' Capital
Liabilities
Capital withdrawals payable	$	68,063,378
Capital contribution received in advance		6,000,000
Total liablities		74,063,378
Commitments and Contingencies (Note 7)
Partners' Capital
General partner		102,599,117
Limited partners		792,608,124
Total partners' capital		895,207,241
Total liabilities and partners' capital	$	969,270,619

 The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Operations
For the Year ended December 31, 2010
(in U.S. dollars)
Investment income (loss)
Net investment income (loss) allocated from NVH I LP
Dividends	$	8,016,834
Interest		30,200
Management fees		(14,805,708	)
Professional fees and other expenses		(1,583,362	)
Net investment loss allocated from NVH I LP		(8,342,036	)
Partnership expenses
Management fees		1,835,330
Total Partnership expenses		1,835,330
Net investment loss		(10,177,366	)
Realized and unrealized gain (loss) on investments allocated from NVH I LP
Net realized gain (loss) on
Investments in securities		142,317,810
Investments in securities sold short		(324,040	)
Derivative transactions (including equity access products and futures contracts)		(10,020,674	)
Foreign currency transactions (including forward foreign currency contracts)		(3,999,670	)
Net realized gain		127,973,426
Net change in unrealized appreciation (depreciation) on
Investments in securities		(22,664,371	)
Investments in securities sold short		(197,857	)
Derivative transactions (including equity access products and futures contracts)		1,003,858
Foreign currency transactions (including forward foreign currency contracts)		2,341,261
Net change in unrealized depreciation		(19,517,109	)
Net realized and unrealized gain on investments allocated from NVH I LP		108,456,317
Net increase in partners' capital resulting from operations	$	98,278,951

  The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Changes in Partners' Capital
For the Year ended December 31, 2010
(in U.S. dollars)
	General Partner			Limited Partners			Total
Partners' capital, December 31, 2009	$	91,409,603		$	752,223,821		$	843,633,424
Capital contributions		-			23,985,000			23,985,000
Capital withdrawals		(1,607,000	)		(69,083,134	)		(70,690,134	)
Pro-rata allocation of net increase in partners'
capital resulting from operations		11,264,375			87,014,576			98,278,951
Incentive allocation charged		1,124,457			(1,124,457	)		-
Change in incentive allocation accrued		407,682			(407,682	)		-
Partners' capital, December 31, 2010	$	102,599,117		$	792,608,124		$	895,207,241

 The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

New Vernon India Fund LP
(a Delaware limited partnership)
Statement of Cash Flows
For the Year ended December 31, 2010
(in U.S.dollars)
Cash flows from operating activities
Net increase in partners' capital resulting from operations	$	98,278,951
Adjustments to reconcile net increase in partners' capital resulting from operations to net
cash provided by operating activities:
Contributions for investment in NVH I LP		(23,985,000	)
Withdrawals of investment in NVH I LP		73,515,732
Management fees paid by NVH I LP on behalf of New Vernon India Fund LP		1,835,330
Allocation from NVH I LP
Net investment loss		8,342,036
Net realized and unrealized gain		(108,456,317	)
Net cash provided by operating activities		49,530,732
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		29,485,000
Capital withdrawals, net of change in capital withdrawals payable		(73,515,732	)
Net cash used by financing activities		(44,030,732	)
Net increase in cash and cash equivalents		5,500,000
Cash and cash equivalents
Beginning of year		500,000
End of year	$	6,000,000

  The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

1.Organization

New Vernon India Fund LP (the “Partnership”), was formed as a Delaware limited partnership on July 30, 2004 and commenced operations on October 12, 2004.  The Partnership is governed by its Second Amended and Restated Limited Partnership Agreement (the “Partnership Agreement”) dated May 18, 2010.  The Partnership’s stated primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies and other assets through the master/feeder structure described below.

The Partnership invests substantially all of its assets through a “master fund/feeder fund” structure.  The Partnership invests the capital it receives in NVH I LP (the “Master Fund”), a Cayman Islands exempted limited partnership.  The Master Fund has the same stated investment objectives as the Partnership.  The Master Fund’s stated investment objectives and structure are detailed in Note 1 of the Master Fund’s notes to its financial statements (the “Master Fund’s Notes”).  The value of the Partnership’s investment in the Master Fund is included in the statement of assets, liabilities and partners’ capital and reflects the Partnership’s proportionate interest in the total partners’ capital of the Master Fund (53.28% at December 31, 2010).  The performance of the Partnership is directly affected by the performance of the Master Fund and the allocation of net investment income/loss and net realized and unrealized gains/losses from the Master Fund is reflected in the statement of operations.  The consolidated financial statements of the Master Fund for the periods ended December 31, 2010 and June 30, 2010, including their consolidated condensed schedules of investments, are attached to this report and should be read in conjunction with the Partnership’s financial statements.

The investment manager of the Partnership and the Master Fund is New Vernon Advisers LP, a Delaware limited liability partnership (the “Investment Manager”).  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists the General Partner with certain administrative functions.  The General Partner of the Partnership and the Master Fund is New Vernon Management LLC, a Delaware limited liability company.

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Partnership in the preparation of its financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements.  In particular, estimates are made relating to the fair value of the Partnership's investment in the Master Fund.  Actual results could differ from those estimates and such differences could be material to the Partnership's financial statements.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

The Partnership records its investment in the Master Fund at fair value, which is represented by the Partnership’s proportionate interest in the partners’ capital of the Master Fund.

Valuation of the investments of the Master Fund, including disclosures relating to the authoritative guidance on fair value measurements and disclosures is discussed in Note 2 of the Master Fund's Notes.  At December 31, 2010 the Master Fund held fair valued investments of $389,177,344 which represented 23.16% of its total partners' capital.  Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the Partnership’s financial statements.

- 6 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

Income and Expense/Incentive Allocation Recognition

The Partnership records its proportionate share of the Master Fund’s investment income, expenses, and realized and unrealized gains and losses.  The Master Fund’s policy with respect to income and expense recognition and allocation of net profits and net losses are discussed in Note 2 of the Master Fund’s Notes.

During the year ended December 31, 2010, all expenses were recorded by the Master Fund and allocated to the Partnership based on its proportionate share of the Master Fund, except for direct management fees charged by the Partnership.

The incentive allocation and any change in incentive allocation associated with unrealized appreciation or depreciation on the Master Fund's Designated Investments are recorded on the accrual basis.

Foreign Currency Translation

The books and records of the Partnership are maintained in U.S. Dollars.  The foreign currency translation policy of the Master Fund is discussed in Note 2 of the Master Fund’s Notes.

Income Taxes

As a partnership, the Partnership itself is not subject to U.S. Federal income taxes; each Partner is individually liable for income taxes, if any, on its share of the Partnership’s net taxable income.  Interest, dividends and other income realized by the Partnership from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Partnership files U.S. Federal income tax returns as well as in various states. With few exceptions, the Partnership is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Partnership by the Internal Revenue Service or any other taxing authority.

The Partnership follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Partnership is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Partnership recording a tax liability that would reduce partners’ capital.  The Partnership did not have any unrecognized tax benefits resulting from tax positions related to either the year ended December 31, 2010 or prior years.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

The Master Fund’s tax policy, including discussion of the India/Mauritius tax treaty, is discussed in the Master Fund’s Notes.

- 7 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

Capital Contributions and Withdrawals

Contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the year, but based upon year-end partners’ capital values, are reflected as capital withdrawals payable at the end of the year.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Management Fee

The Partnership pays the Investment Manager, in the aggregate (including management fees paid by the Master Fund on the Limited Partner’s behalf), a quarterly management fee, prior to the expiration of the three year lock-up provision discussed in Note 4, of 0.5% (2% annually) of each Limited Partner’s quarter end capital account balance and 0.5% (2% annually) of each Limited Partner’s quarter end unfunded capital commitments.  After the expiration of the “lock-up” period, the management fee will be a quarterly amount equal to 0.5% (2% annually) of each Limited Partner’s capital account balance.  Management fees are only charged on the cost basis or written down value of Designated Investments, whichever is lower.  If additional contributions are made to the Partnership during the quarter, the fee will be prorated and charged at the time of such contribution.

Total management fees incurred directly by the Partnership were $1,835,330.  In addition, management fees allocated to the Partnership from the Master Fund were $14,805,708.  Master Fund level management fees are discussed in Note 4 of the Master Fund's Notes.

Incentive Allocation

The General Partner is entitled to an annual incentive allocation from the Partnership.  The incentive allocation is calculated at the end of the year and is 20% of the net increase in partners’ capital resulting from operations (before the incentive allocation) except that any net gains attributable to Designated Investments are not subject to the incentive allocation until realized.  The General Partner accrues an incentive allocation of 20% of the net unrealized appreciation of Designated Investments.  If a partner withdraws capital before the end of the fiscal year, an incentive allocation will be calculated based on any interim period increase in partners’ capital resulting from operations.  The incentive allocation charged is subject to a “high water mark” as fully described in the Partnership Agreement.  The incentive allocation is only charged at the Partnership level and not at the Master Fund level.  For the year ended December 31, 2010, the incentive allocation charged and change in incentive allocation accrued is $1,124,457 and $407,682, respectively, and the cumulative incentive allocation accrued is $1,666,819.  Because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately allocated to the General Partner.

4.Partners’ Capital Accounts

Partnership Interests

Limited partnership interests may be purchased on the first business day of each quarter or at such other times as determined by the General Partner in its sole discretion.  The General Partner may “close” the Partnership by refusing to issue any interests, without notice to the Limited Partners and may, in its sole discretion, reopen the Partnership as of any date.

- 8 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

Capital Commitments and Contributions

Each subscriber for Partnership interests must make a capital commitment equal to a minimum of $3 million at the time of subscription, subject to the General Partner’s right to accept lesser amounts.  Upon the expiration of the “lock-up” period (described below), each Limited Partner may notify the General Partner, upon ninety days’ prior notice, that it no longer desires to participate in future capital calls or wishes to only participate to a smaller degree.

The Limited Partner makes capital contributions in respect of its capital commitments as needed to fund investments and to pay Master Fund and Partnership expenses.  At December 31, 2010, the Partnership has total capital commitments of $650,493,100 which were fully funded.

Withdrawals

The Limited Partners are subject to a “lock-up” period, whereby they may not withdraw any portion of their interest in the Partnership unless such portion has been invested with the Partnership for a period of not less than 36 months from the initial contribution.  Following the “lock-up” period, a Limited Partner may, upon written request (and subject to the limitations related to Designated Investments), withdraw all or a portion of its interest as of the last business day of each calendar year.  A Limited Partner may not withdraw any interest assigned to a Designated Investment until that investment is sold or liquidated.  At December 31, 2010, Limited Partners’ capital amounting to approximately $497,000,000 is eligible for withdrawal, of which approximately $85,000,000 consists of individual members of the General Partner or entities controlled by such individuals.  Requests for withdrawals must be received by the General Partner at least 90 days prior to the effective withdrawal date.  The next eligible date Limited Partners’ capital will be available for withdrawal is December 31, 2011.

Capital withdrawals payable in the statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2010.

Under extraordinary circumstances, as determined by the General Partner, the Partnership may delay payment to the Limited Partner requesting withdrawal, in which event payment for withdrawal will be made to the Limited Partner as soon thereafter as it is practicable.

Distributions

Partnership profits will be automatically reinvested.  Distributions, if any, may be made to the Limited Partners at the sole discretion of the General Partner.

Allocation of Net Profits and Net Losses

Net investment income (losses) and net realized and unrealized gains (losses) on investments are allocated to each Limited Partner in accordance with the Partnership Agreement pro rata based on their respective capital account balances subject to the incentive allocation by the General Partner.  As discussed in Note 3, because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately be allocated to the General Partner.

5.Administrator

The Partnership entered into an administration agreement with Citi Hedge Fund Services North America, Inc. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator has sole responsibility for the administration of the Partnership’s affairs, except with respect to the investment advisory responsibilities performed by the General Partner and custodial activities which are performed by the Master Fund’s prime brokers.  These administrative responsibilities include, among other things, maintaining the Partnership’s books and records and handling capital transactions.  The cost of these administrative services is borne by the Master Fund and the Partnership bears a portion through its direct interest in the Master Fund.

- 9 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

6.Risks

Due to the nature of the “master fund/feeder fund” structure, the Partnership may be materially affected by the actions of other entities investing in the Master Fund as well as the Partnership’s individual investors.  As discussed in the Master Fund’s Notes, there are two other entities invested in the Master Fund at December 31, 2010.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund and the Partnership.  The Partnership could be materially affected by the actions and liquidity of the Investment Manager.

Restrictions on limited partners withdrawals are discussed in Note 4.  Off-balance sheet, market and credit risks of the Master Fund’s investments are discussed in the Master Fund’s Notes.

7.Commitments and Contingencies

In the normal course of business, the Partnership enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Partnership’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred.  The General Partner expects the risks of loss to be remote.

Unfunded commitments of the Master Fund are described in the Master Fund’s Notes.

8.Financial Highlights

The following financial highlights are for the year ended December 31, 2010.  Such results are not predictive of future performance.

Total return before incentive allocation(1)	11.29	%
Incentive allocation(3)	(0.20	)%
Total return after incentive allocation	11.09	%
Supplemental data
Ratio of total expenses to weighted average Limited Partners’ capital(2)	2.05	%
Incentive allocation(3)	0.19	%
Ratio of total expenses and incentive allocation to weighted average Limited Partners’ capital(2)	2.24	%
Ratio of net investment loss to weighted average Limited Partners’ capital(2) (4)	(1.15	)%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions, participation in Designated Investments and Feeder Fund level income and expenses and incentive allocation.

(2)These ratios reflect income and expenses inclusive of the Partnership’s share of income and expenses allocated from the Master Fund.  These ratios are calculated based on average limited partners’ capital.

(3)Includes incentive allocation charged and change in accrued incentive allocation.

(4)The net investment loss ratio does not include the effect of the incentive allocation.

- 10 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2010

9.Subsequent Events

For the period January 1, 2011 through March 30, 2011, the Partnership received total capital contributions of $6,550,000.

The Partnership has performed an evaluation of subsequent events through March 30, 2011, which is the date the financial statements were available to be issued.

- 11 -

EX-99.3 OTHER FIN ST

New Vernon India Fund LP

(a Delaware limited partnership)

Financial Statements

For the year ended December 31, 2009

New Vernon India Fund LP

(a Delaware limited partnership)

Index

December 31, 2009

Page(s)

Report of Independent Auditors 1

Financial Statements

Statement of Assets, Liabilities and Partners’ Capital 2

Statement of Operations 3

Statement of Changes in Partners’ Capital 4

Statement of Cash Flows 5

Notes to Financial Statements 6–11

Report of Independent Auditors

To the Partners of New Vernon India Fund LP

(a Delaware limited partnership)

In our opinion, the accompanying statement of assets, liabilities and partners’ capital, and the related statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of New Vernon India Fund LP at December 31, 2009, and the results of its operations, the changes in its partners’ capital and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 26, 2010

- 1 -

New Vernon India Fund LP

(a Delaware limited partnership)

Statement of Assets, Liabilities and Partners’ Capital

December 31, 2009

(in U.S. dollars)

Assets
Investment in NVH I LP, at fair value	$	843,633,424
Withdrawals receivable from NVH I LP		70,888,976
Cash and cash equivalents		500,000
Total assets	$	915,022,400
Liabilities and Partners’ Capital
Liabilities
Capital withdrawals payable	$	70,888,976
Capital contribution received in advance		500,000
Total liabilities		71,388,976
Commitments and Contingencies (Note 7)
Partners' Capital
General partner		91,409,603
Limited partners		752 223,821
Total partners' capital		843,633,424
	$	915,022,400

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

New Vernon India Fund LP

(a Delaware limited partnership)

Statement of Operations

For the year ended December 31, 2009

(in U.S. dollars)

Investment income (loss)
Net investment income (loss) allocated from NVH I LP
Dividends	$	3,995,239
Interest		63,560
Management fees		(11,002,916	)
Professional fees and other expenses		(1,619,266	)
Net investment loss allocated from NVH I LP		(8,563,383	)
Partnership expenses
Management fees		1,903,916
Total Partnership expenses		1,903,916
Net investment loss		(10,467,299	)
Realized and unrealized gain (loss) allocated from NVH I LP
Net realized gain (loss) on
Investments in securities		(4,061,793	)
Investments in securities sold short		(2,349,137	)
Derivative transactions (including equity access products and futures contracts)		29,786,295
Foreign currency transactions (including forward foreign currency contracts)		(2,478,452	)
Net realized gain		20,896,913
Net change in unrealized appreciation (depreciation) on
Investments in securities		316,544,500
Investments in securities sold short		179,689
Derivative transactions (including equity access products and futures contracts)		7,893,813
Foreign currency transactions (including forward foreign currency contracts)		(1,928,089	)
Net change in unrealized appreciation		322,689,913
Net realized and unrealized gain allocated from NVH I LP		343,586,826
Net increase in partners' capital resulting from operations	$	333,119,527

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

New Vernon India Fund LP

(a Delaware limited partnership)

Statement of Changes in Partners’ Capital

For the year ended December 31, 2009

(in U.S. dollars)

	General			Limited
	Partner			Partners			Total
Partners’ capital, December 31, 2008	$	52,882,762		$	493,232,074		$	546,114,836
Capital contributions		-			35,991,310			35,991,310
Capital withdrawals		(185,000	)		(71,407,249	)		(71,592,249	)
Pro-rata allocation of net increase in partners’
capital resulting from operations		36,896,640			296,222,887			333,119,527
Incentive allocation charged		556,064			(556,064	)		-
Change in incentive allocation accrued		1,259,137			(1,259,137	)		-
Partners' capital, December 31, 2009	$	91,409,603		$	752 223,821		$	843,633,424

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

New Vernon India Fund LP

(a Delaware limited partnership)

Statement of Cash Flows

For the year ended December 31, 2009

(in U.S. dollars)

Cash flows from operating activities
Net increase in partners’ capital resulting from operations	$	333,119,527
Adjustments to reconcile net increase in partners’ capital resulting from operations to net
cash used by operating activities:
Contributions for investment in NVH I LP		(36,391,310	)
Withdrawals of investment in NVH I LP		32,910,030
Management fees paid by NVH I LP on behalf of New Vernon India Fund LP		1,903,916
Allocation from NVH I LP
Net investment loss		8,563,383
Net change in unrealized appreciation on investments in securities and derivative transactions		(324,438,313	)
Net change in unrealized appreciation on investments in securities sold short		(179,689	)
Net change in unrealized depreciation on foreign currency transactions		1,928,089
Net realized gain on investments in securities and derivatives transactions		(25,724,502	)
Net realized loss on investments in securities sold short		2,349,137
Net realized loss on foreign currency transactions		2,478,452
Net cash used by operating activities		(3,481,280	)
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		36,491,310
Capital withdrawals, net of change in capital withdrawals payable		(32,910,030	)
Net cash provided by financing activities		3,581,280
Net increase in cash and cash equivalents		100,000
Cash and cash equivalents
Beginning of year		400,000
End of year	$	500,000

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

1.Organization

New Vernon India Fund LP (the “Partnership”), was formed as a Delaware limited partnership on July 30, 2004 and commenced operations on October 12, 2004.  The Partnership is governed by its Amended and Restated Limited Partnership Agreement (the “Partnership Agreement”) dated February 1, 2005.  The Partnership’s primary investment objective is to seek to earn a superior risk-adjusted return primarily through investments in a selection of Indian companies and other assets through the master/feeder structure described below.

The Partnership invests substantially all of its assets through a “master fund/feeder fund” structure.  The Partnership invests the capital it receives in NVH I LP (the “Master Fund”), a Cayman Islands exempted limited partnership.  The Master Fund has the same investment objectives as the Partnership.  The Master Fund’s investment objectives and structure are detailed in Note 1 of the Master Fund’s notes to its financial statements (the “Master Fund’s Notes”).  The value of the Partnership’s investment in the Master Fund is included in the statement of assets, liabilities and partners’ capital and reflects the Partnership’s proportionate interest in the total partners’ capital of the Master Fund (49.91% at December 31, 2009).  The performance of the Partnership is directly affected by the performance of the Master Fund and the allocation of net investment income/loss and net realized and unrealized gains/losses from the Master Fund is reflected in the statement of operations.  The consolidated financial statements of the Master Fund for the periods ended December 31, 2009 and June 30, 2009, including their consolidated condensed schedules of investments, are attached to this report and should be read in conjunction with the Partnership’s financial statements.

The investment manager of the Partnership and the Master Fund is New Vernon Advisers LP, a Delaware limited liability partnership (the “Investment Manager”).  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists the General Partner with certain administrative functions.  The General Partner of the Partnership and the Master Fund is New Vernon Management LLC, a Delaware limited liability company.

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specified identification cost basis.

Investment Valuation

The Partnership records its investment in the Master Fund at fair value, which is represented by the Partnership’s proportionate interest in the partners’ capital of the Master Fund.

Valuation of the investments of the Master Fund, including disclosures relating to the authoritative guidance on fair value measurements and disclosures is discussed in Note 2 of the Master Fund's Notes.  At December 31, 2009 the Master Fund held fair valued investments (which are termed "Designated Investments") of $388,863,701 (which excludes Designated Investments of $60,371,166 valued at their last available public sale price) which represented 23.00% of its total partners' capital.  Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the Partnership’s financial statements.

- 6 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

Income and Expense/Incentive Allocation Recognition

The Partnership records its proportionate share of the Master Fund’s investment income, expenses, and realized and unrealized gains and losses.  The Master Fund’s policy with respect to income and expense recognition and allocation of net profits and net losses are discussed in Note 2 of the Master Fund’s Notes.

During the year ended December 31, 2009, all expenses were recorded by the Master Fund and allocated to the Partnership based on its proportionate share of the Master Fund, except for direct management fees charged by the Partnership.

Foreign Currency Translation

The books and records of the Partnership are maintained in U.S. Dollars.  The foreign currency translation policy of the Master Fund is discussed in Note 2 of the Master Fund’s Notes.

Income Taxes

As a partnership, the Partnership itself is not subject to U.S. Federal income taxes; each Partner is individually liable for income taxes, if any, on its share of the Partnership’s net taxable income.  Interest, dividends and other income realized by the Partnership from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Partnership files U.S. Federal income tax returns as well as various states. With few exceptions, the Partnership is no longer subject to income tax examinations by tax authorities for years before 2006.  There are currently no examinations being conducted of the Partnership by the Internal Revenue Service or any other taxing authority.

The Partnership recognizes interest and penalties related to the underpayment of income taxes in operating expenses; however, during the year ended December 31, 2009, no such interest and penalties were incurred.

The General Partner believes that, under the provisions of the Internal Revenue Code, the Partnership will be treated for federal income tax purposes as a partnership and not as an association taxable as a corporation.  If, contrary to the General Partner’s belief, the Partnership becomes taxable as a corporation, the Partnership may incur a tax liability that has not been recorded.

The Partnership follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Partnership is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater fifty percent likely of being realized upon ultimate settlement which could result in the Partnership recording a tax liability that would reduce partners’ capital.  The Partnership did not have any unrecognized tax

benefits resulting from tax positions related to either the year ended December 31, 2009 or prior years.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

The Master Fund’s tax policy, including discussion of the India/Mauritius tax treaty, is discussed in the Master Fund’s Notes.

- 7 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

Capital Contributions and Withdrawals

Contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the year, but based upon year-end partners’ capital values, are reflected as capital withdrawals payable at the end of the year.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Management Fee

The Partnership pays the Investment Manager, in the aggregate (including management fees paid by the Master Fund on the Limited Partner’s behalf), a quarterly management fee, prior to the expiration of the three year lock-up provision discussed in Note 4, of 0.5% (2% annually) of each Limited Partner’s quarter end capital account balance and 0.5% (2% annually) of each Limited Partner’s quarter end unfunded capital commitments.  After the expiration of the “lock-up” period, the management fee will be a quarterly amount equal to 0.5% (2% annually) of each Limited Partner’s capital account balance.  Management fees are only charged on the cost basis or written down value of Designated Investments, whichever is lower.  If additional contributions are made to the Partnership during the quarter, the fee will be prorated and charged at the time of such contribution.

Total management fees incurred directly by the Partnership were $1,903,916.  In addition, management fees allocated to the Partnership from the Master Fund were $11,002,916.  Master Fund level management fees are discussed in Note 4 of the Master Fund's Notes.

Incentive Allocation

The General Partner is entitled to an annual incentive allocation from the Partnership.  The incentive allocation is calculated at December 31, 2009 and is 20% of the net increase in partners’ capital resulting from operations (before the incentive allocation) except that any net gains attributable to Designated Investments are not subject to the incentive allocation until realized.  The General Partner accrues an incentive allocation of 20% of the net unrealized appreciation of Designated Investments.  If a partner withdraws capital before the end of the fiscal year an incentive allocation will be calculated based on any interim period increase in partners’ capital resulting from operations.  The incentive allocation charged is subject to a “high water mark” as fully described in the Partnership Agreement.  The incentive allocation is only charged at the Partnership level and not at the Master Fund level.  For the year ended December 31, 2009, the incentive allocation charged and incentive allocation accrued is $556,064 and $1,259,137, respectively, and the cumulative incentive allocation accrued is $1,259,137.  Because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately allocated to the General Partner.

- 8 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

4.Partners’ Capital Accounts

Partnership Interests

Limited partnership interests may be purchased on the first business day of each quarter or at such other times as determined by the General Partner in its sole discretion.  The General Partner may “close” the Partnership by refusing to issue any interests, without notice to the Limited Partners and may, in its sole discretion, reopen the Partnership as of any date.

Capital Commitments and Contributions

Each subscriber for Partnership interests must make a capital commitment equal to a minimum of $3 million at the time of subscription, subject to the General Partner’s right to accept lesser amounts.  Upon the expiration of the “lock-up” period (described below), each Limited Partner may notify the General Partner, upon ninety days’ prior notice, that it no longer desires to participate in future capital calls or wishes to only participate to a smaller degree.

The Limited Partner makes capital contributions in respect of its capital commitments as needed to fund investments and to pay Master Fund and Partnership expenses.  At December 31, 2009, the Partnership has total capital commitments of $627,008,100, of which $626,508,100 has been contributed to the Partnership.

Withdrawals

The Limited Partners are subject to a “lock-up” period, whereby they may not withdraw any portion of their interest in the Partnership unless such portion has been invested with the Partnership for a period of not less than 36 months from the initial contribution.  Following the “lock-up” period, a Limited Partner may, upon written request (and subject to the limitations related to Designated Investments), withdraw all or a portion of its interest as of the last business day of each calendar year.  A Limited Partner may not withdraw any interest assigned to a Designated Investment until that investment is sold or liquidated.  At December 31, 2009, Limited Partners’ capital amounting to approximately $392,000,000 is eligible for withdrawal, of which approximately $72,000,000 consists of individual members of the General Partner or entities controlled by such individuals.  Requests for withdrawals must be received by the General Partner at least 90 days prior to the effective withdrawal date.  The next eligible date Limited Partners’ capital will be available for withdrawal is December 31, 2010.

Capital withdrawals payable in the statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2009.

Under extraordinary circumstances, as determined by the General Partner, the Partnership may delay payment to the Limited Partner requesting withdrawal, in which event payment for withdrawal will be made to the Limited Partner as soon thereafter as it is practicable.

Distributions

Partnership profits will be automatically reinvested.  Distributions, if any, may be made to the Limited Partners at the sole discretion of the General Partner.

Allocation of Net Profits and Net Losses

Net investment income (losses) and net realized and unrealized gains (losses) on investments are allocated to each Limited Partner in accordance with the Partnership Agreement pro rata based on their respective capital account balances subject to the incentive allocation by the General Partner.  As discussed in Note 3, because of the inherent uncertainty of the valuation of the Designated Investments, the accrued incentive allocation may not necessarily represent amounts that will be ultimately be allocated to the General Partner.

5.Administrator

The Partnership entered into an administration agreement with Citi Hedge Fund Services North America, Inc. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator has sole responsibility for the administration of the Partnership’s affairs, except with respect to the investment advisory responsibilities performed by the General Partner and custodial activities which are performed by the Master Fund’s prime brokers.  These administrative responsibilities include, among other things, maintaining the Partnership’s books and records and handling capital transactions.  The cost of these administrative services is borne by the Master Fund and the Partnership bears a portion through its direct interest in the Master Fund.

- 9 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

6.Risks

Due to the nature of the “master fund/feeder fund” structure, the Partnership may be materially affected by the actions of other entities investing in the Master Fund as well as the Partnership’s individual investors.  As discussed in the Master Fund’s Notes, there are two other entities invested in the Master Fund at December 31, 2009.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund and the Partnership.  The Partnership could be materially affected by the actions and liquidity of the Investment Manager.

Restrictions on limited partners withdrawals are discussed in Note 4.  Off-balance sheet, market and credit risks of the Master Fund’s investments are discussed in the Master Fund’s Notes.

7.Commitments and Contingencies

In the normal course of business, the Partnership enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Partnership’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred.  The General Partner expects the risks of loss to be remote.

8.Financial Highlights

The following financial highlights are for the year ended December 31, 2009.  Such results are not predictive of future performance.

Total return before incentive allocation(1)	59.28	%
Incentive allocation(3)	(0.36	)%
Total return after incentive allocation	58.92	%
Supplemental data
Ratio of total expenses to weighted average Limited Partners’ capital(2)	2.10	%
Incentive allocation(3)	0.29	%
Ratio of total expense and incentive allocation to weighted average Limited Partners’ capital(2)	2.39	%
Ratio of net investment loss to weighted average Limited Partners’ capital(2) (4)	(1.52	)%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions, participation in Designated Investments and Feeder Fund level income and expenses and incentive allocation.

(2)These ratios reflect income and expenses inclusive of the Partnership’s share of income and expenses allocated from the Master Fund.  These ratios are calculated based on average limited partners’ capital.

(3)Includes incentive allocation charged and change in accrued incentive allocation.

(4)The net investment loss ratio does not include the effect of the incentive allocation.

- 10 -

New Vernon India Fund LP

(a Delaware limited partnership)

Notes to Financial Statements

December 31, 2009

9.Subsequent Events

For the period January 1, 2010 through March 26, 2010, the Partnership received total capital contributions of $4,750,000.

The Partnership has performed an evaluation of subsequent events through March 26, 2010, which is the date the financial statements were available to be issued.

- 11 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period July 1, 2011

through December 31, 2011

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

December 31, 2011

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–6

Consolidated Statement of Operations 7

Consolidated Statement of Changes in Partners’ Capital 8

Consolidated Statement of Cash Flows 9

Notes to Consolidated Financial Statements 10–23

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at December 31, 2011, and the results of their operations, the changes in their partners’ capital and their cash flows for the period July 1, 2011 through December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 30, 2012

- 1 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Assets, Liabilities and Partners' Capital
December 31, 2011
(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $808,453,252)	$	823,020,710
Cash and cash equivalents		326,211,464
Foreign cash  (cost $23,000,606)		21,968,294
Due from broker		15,383,316
Receivable for investments sold		5,225,813
Investment paid in advance		4,152,773
Net unrealized appreciation on forward foreign currency contracts, at fair value		2,580,373
Dividends receivable		24,714
Total assets	$	1,198,567,457
Liabilities and Partners' Capital
Liabilities
Investment in securities sold short, at fair value  (proceeds $1,038,283)	$	576,797
Capital withdrawals payable		197,404,064
Payable for investments purchased		519,901
Accounts payable and accrued expenses		342,056
Total liabilities		198,842,818
Commitments and Contingencies (Note 10)
Partners' Capital
General partner		1,000
Limited partners		999,723,639
Total partners' capital		999,724,639
Total liabilities and partners' capital	$	1,198,567,457

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Condensed Schedule of Investments
December 31, 2011
(in U.S. dollars)				Fair Value as a
				Percent of
		Fair		Total Partners'
Description		Value		Capital
Investment in Securities
Listed Common Stocks
India
Financial Services		$	87,545,859		8.73	%
Automobiles			63,748,252		6.38	%
Diversified			52,156,401		5.22	%
Software			50,787,236		5.08	%
Pharmaceuticals			46,706,678		4.67	%
Consumer Products			44,024,699		4.40	%
Energy			20,705,660		2.07	%
Real Estate			18,452,261		1.85	%
Telecom			17,907,180		1.79	%
Logistics			14,448,935		1.45	%
Materials			9,107,948		0.91	%
Food, Beverage			9,044,162		0.90	%
Infrastructure			7,234,573		0.72	%
Chemicals, Agro			3,591,143		0.36	%
Construction			3,142,414		0.31	%
Auto Ancilliaries			2,271,284		0.23	%
Others			8,565,059		0.86	%
	Total India listed common stocks (Cost $495,029,069)		459,439,744		45.93	%
Indonesia
Financial Services			9,652,663		0.97	%
	Total Indonesia listed common stocks (Cost $9,656,042)		9,652,663		0.97	%
Brazil
Food, Beverage			4,840,860		0.48	%
	Total Brazil listed common stocks
	(Cost $4,417,858)		4,840,860		0.48	%
Hong Kong
Gaming			3,175,312		0.32	%
	Total Hong Kong listed common stocks (Cost $3,392,233)		3,175,312		0.32	%
	Total listed common stocks (Cost $512,495,202)		477,108,579		47.70	%

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

				Fair Value as a
				Percent of
		Fair		Total Partners'
Options Purchased (a)		Value		Capital
India
Index		$	2,157,825		0.22	%
Currency			171,346		0.02	%
	Total India options purchased (Cost $3,088,847)		2,329,171		0.24	%
United States of America
Emerging Market			188,555		0.02	%
	Total United States of America options purchased (Cost $574,435)		188,555		0.02	%
	Total options purchased (Cost $3,663,282)		2,517,726		0.26	%
Debt Securities
India
Automobiles			6,546,921		0.65	%
	Total debt securities (Cost $6,534,375)		6,546,921		0.65	%
Private Investments
India
Non-Listed Common Stocks
Hotel			25,351,781		2.54	%
Construction			19,368,934		1.94	%
Commercial Services			10,560,456		1.06	%
Financial Services			8,743,886		0.87	%
Software			3,157,462		0.32	%
Capital Goods			3,077,280		0.31	%
	Total India non-listed common stocks (Cost $75,484,624)		70,259,799		7.04	%
Listed Common Stocks (carried at exchange price)
Automobiles			6,535,570		0.65	%
Textile			1,904,321		0.19	%
	Total India listed common stocks (Cost $10,630,786)		8,439,891		0.84	%
Real Estate
Silver Holdings Mauritius Limited, Various Cities, India (626 shares)			50,951,364		5.11	%
Khajrana Ganesh (Carton) Limited, Gurgaon, India (1,020 shares)			50,107,035		5.01	%
NV Developers Private Limited, Thane, India			36,661,206		3.67	%
NV Realty Private Limited, Pune, India			35,931,202		3.59	%
Carwel Estates Limited, Chennai, India			27,225,012		2.72	%
Other			48,688,979		4.87	%
	Total India real estate (Cost $190,817,629)		249,564,798		24.97	%

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

					Fair Value as a
					Percent of
Private Investments, continued		Fair			Total Partners'
Investment Fund		Value			Capital
India
Real Estate		$	5,217,730			0.52	%
	Total India investment fund (Cost $5,357,750)		5,217,730			0.52	%
Malaysia
Diversified			3,365,266			0.34	%
	Total Malaysia investment fund (Cost $3,469,604)		3,365,266			0.34	%
	Total private investments (Cost $285,760,393)		336,847,484			33.71	%
	Total investments in securities (Cost $808,453,252)	$	823,020,710			82.32	%
Investments in Securities Sold Short
Options Written (a)
India
Index		$	(519,792	)		(0.05	)%
	Total India options written (Proceeds $726,954)		(519,792	)		(0.05	)%
United States of America
Emerging Market			(57,005	)		(0.01	)%
	Total United States of America options written (Proceeds $311,329)		(57,005	)		(0.01	)%
	Total options written (Proceeds $1,038,283)		(576,797	)		(0.06	)%
	Total investment in securities sold short (Proceeds $1,038,283)	$	(576,797	)		(0.06	)%

The accompanying notes are an integral part of these consolidated financial statements.
 

- 5 -

					Fair Value as a
					Percent of
					Total Partners'
Forward Foreign Currency Contracts ((0.26%) of partners' capital) (a)				Fair	Capital
	Amount in			Value
	Indian				Unrealized
	Rupees		Description	Maturities	Appreciation
				1/6/2012-
(16,558,753,200)			US Dollar sold in exchange for Indian Rupee	12/19/2012	$2,580,373
			Net unrealized appreciation on forward
			foreign currency contracts		$2,580,373
Futures Contracts (a)					Unrealized
	Number of		Description	Maturities	Appreciation
	Contracts				(Depreciation)
	4		Various	Various	$-
	(a)	Derivative contracts may increase  or  decrease  the  Master  Fund's  economic  exposure  to  individual
		issuers,   currencies, industry   or   market   developments   in   addition   to   the   amounts   shown   as
		unrealized appreciation/depreciation.
				Fair Value of Long
				Positions as a
				Percent of
Industry Concentration of Investments in Securities				Total Partners'
greater than 5% of Total Partners' Capital				Capital
Real Estate				27.34%
Financial Services				10.57%
Automobiles				7.68%
Diversified				5.56%
Software				5.40%
Country Concentration of Investments in Securities
greater than 5% of Total Partners' Capital
India				80.21%

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Operations
For the Period July 1, 2011 through December 31, 2011
(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $18,371)	$	5,642,768
Interest		7,566
Total investment income		5,650,334
Expenses
Management fees		7,326,527
Professional fees		1,075,098
Other		106,858
Total expenses		8,508,483
Net investment loss		(2,858,149	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		(64,724,321	)
Investments in securities sold short		(668,958	)
Derivative transactions (including equity access products and futures contracts)		(16,312,374	)
Foreign currency transactions (including forward foreign currency contracts)		1,032,709
Net realized loss		(80,672,944	)
Net change in unrealized appreciation (depreciation) on
Investments in securities		(266,145,838	)
Investments in securities sold short		121,246
Derivative transactions (including equity access products and futures contracts)		(7,178,141	)
Foreign currency transactions (including forward foreign currency contracts)		1,421,541
Net change in unrealized depreciation		(271,781,192	)
Net realized loss and change in unrealized depreciation on investments		(352,454,136	)
Net decrease in partners' capital resulting from operations	$	(355,312,285	)

The accompanying notes are an integral part of these consolidated financial statements.

- 7 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Changes in Partners' Capital
For the Period July 1, 2011 through December 31, 2011
(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, July 1, 2011	$	1,000	$	1,555,340,121		$	1,555,341,121
Capital contributions		-		5,100,000			5,100,000
Capital withdrawals		-		(199,241,710	)		(199,241,710	)
Deemed distributions		-		(6,162,487	)		(6,162,487	)
Pro-rata allocation of net decrease in partners'
capital resulting from operations		-		(355,312,285	)		(355,312,285	)
Partners' capital, December 31, 2011	$	1,000	$	999,723,639		$	999,724,639

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Cash Flows
For the Period July 1, 2011 through December 31, 2011
(in U.S.dollars)
Cash flows from operating activities
Net decrease in partners' capital resulting from operations	$	(355,312,285	)
Adjustments to reconcile net decrease in partners' capital resulting from operations to net
cash provided by operating activities:
Purchase of securities and equity access products		(666,296,944	)
Payments to cover securities sold short		(19,421,705	)
Proceeds from sales of securities and equity access products		834,107,443
Proceeds from securities sold short		26,575,936
Payments from closeouts of future contracts		(7,912,197	)
Payments on forward foreign currency contracts		1,032,709
Change in operating assets:
Due from broker		26,333,179
Dividends receivable		3,446,509
Investment paid in advance		(4,152,773	)
Increase in operating liabilities:
Accounts payable and accrued expenses		(117,208	)
Net change in unrealized depreciation on investments in securities and derivative transactions		273,323,979
Net change in unrealized appreciation on investments in securities sold short		(121,246	)
Net change in unrealized appreciation on foreign currency
(including forward foreign currency contracts)		(2,779,767	)
Net realized loss on investments in securities and derivative transactions		81,036,695
Net realized loss on investments in securities sold short		668,958
Net realized gain on foreign currency transactions (including forward foreign currency contracts)		(1,032,709	)
Net cash provided by operating activities		189,378,574
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		2,475,000
Capital withdrawals, net of change in capital withdrawals payable		(15,728,330	)
Deemed distributions		(6,162,487	)
Net cash used by financing activities		(19,415,817	)
Net increase in cash and cash equivalents		169,962,757
Cash and cash equivalents (including foreign cash)
Beginning of period		178,217,001
End of period	$	348,179,758

The accompanying notes are an integral part of these consolidated financial statements.

- 9 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund was governed by its agreement of limited partnership dated January 7, 2006 which was amended and restated on August 1, 2011 (the "Partnership Agreement").

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”) and its wholly-owned Singapore subsidiary, Marjoram Pte. Limited (“Marjoram”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At December 31, 2011, New Vernon Holdings LP (“Holdings”), New Vernon India Fund LP and New Vernon India Fund II LP held interests in the partners’ capital of the Master Fund of 38.40%, 57.98% and 3.62%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 11.40% and 22.07%, respectively, at December 31, 2011.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP, New Vernon India Fund LP and New Vernon India Fund II LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s stated primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.

Investment Valuation and Fair Value Measurements

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund which the General Partner believes represents fair value.

At December 31, 2011, $8,439,891 of investments consists of securities included in Designated Investments which are valued at the last available public sale price.

At December 31, 2011, there were two investments in investment funds which were fair valued at the net asset value reported by such investment funds.  Investments in investment funds includes a private equity fund investing in real estate opportunities in India, with a fair value of $5,217,730, and a private equity fund investing in opportunities in Malaysia and other emerging markets, with a fair value of $3,365,266.  The Master Fund cannot redeem its interest from these funds.  Distributions from each fund will be received as the underlying investments of the funds are liquidated with estimated liquidation of the underlying investments ranging from six to eight years.

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.  As of December 31, 2011, there were no equity access products outstanding.

The Master Fund also invests in index products.  Index products are fully-paid depository type instruments valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as an unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

The Master Fund also invests in debt securities which are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At December 31, 2011, there were 23 Designated Investments with an aggregate fair value of $336,847,484.  The largest individual Designated Investment at December 31, 2011 had a fair value of $50,951,364.  Generally, the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially value such investments at cost which the General Partner believes is representative of fair value (excluding Designated Investments of $8,439,891 fair valued at their last available public sale price)  and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Level 3 investments include investments in funds, private equity and real estate investments.  When observable prices are not available for these investments, the General Partner uses one or more valuation techniques for which sufficient and reliable data is available.  Valuation techniques for private equity investments include utilizing multiples derived from peer company comparable data or relevant market indices.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.  Valuation techniques include direct capitalization methods utilizing expected revenue and market-based capitalization rates as well as present value methods discounting expected future cash flows utilizing market-based discount rates.

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At December 31, 2011, total securities at level 3 fair valued by the General Partner (in consultation with the Investment Manager) were $328,407,593 and represented 32.85% of total partners’ capital.  In addition, at December 31, 2011, $45,534,116 of listed common stocks representing 4.55% of total partners’ capital, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Master Fund discloses the fair value of its investments in a hierarchy that prioritizes the  inputs  to valuation  techniques  used  to  measure  fair  value.  The  hierarchy  gives  the  highest priority  to  unadjusted  quoted  prices  in  active  markets  for  identical  assets  or  liabilities  (level  1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1:  Inputs  that  reflect  unadjusted  quoted  prices  in  active  markets  for  identical  assets  or liabilities that the Master Fund has the ability to access at the measurement date;

Level 2:  Inputs  other  than  quoted  prices  included  within  Level  1  that  are  observable  for  the asset  or  liability  either  directly  or  indirectly,  including  inputs  in  markets  that  are  not considered to be active; and

Level 3:  Unobservable inputs for the asset or liability.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable"  requires  significant  judgment  by  management.  Management  considers observable data to be that market data which is readily available, regularly distributed or updated, reliable  and  verifiable,  not  proprietary  and  provided  by  multiple,  independent  sources  that  are actively involved in the relevant market. The categorization of an investment within the hierarchy is based  upon  the  pricing  transparency  of  the  investment  and  does  not  necessarily  correspond  to management’s perceived risk of that investment.

- 13 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at December 31, 2011:

	Level 1			Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	477,108,579		$	-		$	-	$	477,108,579
Options purchased		2,157,825			359,901			-		2,517,726
Debt securities		-			6,546,921			-		6,546,921
Private investments:
Non-listed common stocks		-			-			70,259,799		70,259,799
Listed common stocks		8,439,891			-			-		8,439,891
Real estate		-			-			249,564,798		249,564,798
Investment funds		-			-			8,582,996		8,582,996
		487,706,295			6,906,822			328,407,593		823,020,710
Investments sold short:
Options written		(519,792	)		(57,005	)		-		(576,797	)
Net unrealized appreciation on forward currency contracts		-			2,580,373			-		2,580,373
Total	$	487,186,503		$	9,430,190		$	328,407,593	$	825,024,286

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period July 1, 2011 through December 31, 2011:

	Investments in Securities
	Private Investments
	Non-Listed Common Stocks			Real Estate			Investment Funds			Totals
Balance, beginning of period	$	86,379,304		$	283,973,682		$	9,369,746		$	379,722,732
Purchases		-			25,000			-			25,000
Dispositions/distributions		-			-			(660,000	)		(660,000	)
Net realized losses on investments in securities		-			-			-			-
Net change in unrealized depreciation on investments in securities		(16,119,505	)		(34,433,884	)		(126,750	)		(50,680,139	)
Transfers in (a)		-			-			-			-
Transfers out (a)		-			-			-			-
Balance, end of period	$	70,259,799		$	249,564,798		$	8,582,996		$	328,407,593
Net change in unrealized depreciation from investments still held at the end of the period	$	(16,119,505	)	$	(34,433,884	)	$	(126,750	)	$	(50,680,139	)

(a)             The Master Fund's policy is to recognize transfers in/out at the effective date of the transfer.  There were no transfers between level 1, 2 and 3 during the period.

- 14 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.

Income and Expense Recognition

Interest income is recorded on an accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Realized gains and losses on security transactions are determined on the specific identification cost basis.  Other operating expenses are recorded on an accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

Income Taxes

No provision has been made in the accompanying financial statements for U.S. Federal, State and Local income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sales or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Master Fund conducts investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

Marjoram is a tax resident of Singapore and expects to obtain benefits under Singapore’s tax exemption for resident funds.  To obtain these benefits, Marjoram must meet certain tests and conditions, including the establishment as a Singapore tax resident and other related requirements.  Marjoram’s application as a resident fund has been approved by the Singaporean authorities.  Under the tax exemption for resident fund scheme, investment income such as profits, gains, dividends and interest from specified investments is exempt from Singapore tax.  Management believes that Marjoram qualifies to obtain the benefit of the tax exemption for resident funds and, accordingly, no provision for Singaporean income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

The Master Fund follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period July 1, 2011 through December 31, 2011 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.  There are no interest and penalties related to uncertain tax positions recognized in the consolidated statement of operations.

Cash and Cash Equivalents

Cash and cash equivalents and foreign cash include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.  Foreign cash held at December 31, 2011 is primarily denominated in Indian Rupees.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by counterparties.  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Index Products

The Master Fund enters into index products which are fully-paid depository type instruments provided by counterparties.  The performance for index products is recorded as part of realized or unrealized gain or loss on investments.

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for forward foreign currency contracts, futures and options contracts and securities sold short.  At December 31, 2011, margin deposits with brokers were approximately $15,400,000 and $16,000,000 reflected in the consolidated statement of assets, liabilities and partners’ capital in due from broker and foreign cash, respectively.

Netting of Derivatives

The Master Fund nets unrealized gains and losses by counterparty and product type on the consolidated statement of assets, liabilities and partners' capital where a legal right of offset exists under an enforceable netting agreement in accordance with GAAP.

Financial Instruments

All assets and liabilities classified as financial instruments are reported at fair value.

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the period, but based upon period-end partners’ capital values, are reflected as capital withdrawals payable at the end of the period.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Derivative Contracts

The Master Fund transacts in a variety of derivative instruments including options, equity access products and forward foreign currency contracts for trading or risk management purposes with each instrument’s primary risk exposure being market and foreign exchange risk.

- 17 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

The following table sets forth the Master Fund’s fair value of derivative instruments at December 31, 2011 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Notional or Contractual Amount			Fair Value
Investments in securities:
Options purchased:
Index contracts	$	101,000,000		$	2,157,825
Equity contracts		16,000,000			188,555
Currency contracts		100,000,000			171,346
					2,517,726
Futures purchased: Equity contracts		2,000,000			-
Net unrealized depreciation on forward
foreign currency contracts:
Forward foreign currency contracts		(305,000,000	)		2,580,373
Investments sold short:
Options written:
Index contracts		(84,000,000	)		(519,792	)
Equity contracts		(16,000,000	)		(57,005	)
					(576,797	)
Net derivatives				$	4,521,302

The Master Fund’s activity in the above derivative instruments for the period July 1, 2011 through December 31, 2011 was below or approximately at the notional or contractual amounts shown.

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period July 1, 2011 through December 31, 2011 as presented in the consolidated statement of operations:

	Risk Exposure	Net Realized Gain (Loss)	Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:
Options purchased:
Equity contracts	Market	$          (1,381,325)	$             (385,880)
Index contracts	Market	(11,748,394)	270,056
Currency contracts	Currency	(1,070,715)	(297,642)
Commodity contracts	Commodity	(834,150)	436,580
Futures contracts:
Equity contracts	Market	(7,834,827)	-
Equity access products	Market	5,719,889	(7,322,501)
Options written:
Equity contracts	Market	1,010,819	254,324
Index contracts	Market	1,136,864	207,163
Currency contracts	Currency	(1,642,535)	(20,691)
Commodity contracts	Commodity	332,000	(319,550)
		(16,312,374)	(7,178,141)
Net realized gain (loss) on foreign currency transactions:
Forward foreign exchange contracts		5,659,402	2,779,767
		$        (10,652,972)	$         (4,398,374)

- 18 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

4.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At December 31, 2011, such affiliated Limited Partners had aggregate capital balances of approximately $77,100,000 with total capital contributed and committed amounting to $42,100,000.  In addition, at December 31, 2011, the General Partner had aggregate capital balances in the Feeder Funds of approximately $116,400,000.

5.Management Fees

The Mauritius Companies and Marjoram pay the Investment Manager and its wholly-owned subsidiaries a management fee on a quarterly basis of such an amount as may be mutually agreed and subject to reasonable adjustments.  The management fees paid by the Mauritius Companies and Marjoram are reflected in these consolidated financial statements as management fee expense which was $7,326,527 for the period July 1, 2011 through December 31, 2011.

6.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings, New Vernon India Fund LP and New Vernon India Fund II LP levels.

7.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services North America, Inc., (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, processing capital transactions, monthly and quarterly procedures and functions specified in the agreement.  The Master Fund pays the Administrator a fee for these services, approximately $150,000 for the period July 1, 2011 through December 31, 2011, which is included in professional fees in the consolidated statement of operations.

8.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

From inception through December 31, 2011, the Limited Partners had total capital commitments of $1,330,000,000, of which $1,330,000,000 has been contributed to the Feeder Funds, and total withdrawals of approximately $833,800,000.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2011.

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

- 19 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

For the period July 1, 2011 through December 31, 2011, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings, New Vernon India Fund LP and New Vernon India Fund II LP.  For the period July 1, 2011 through December 31, 2011, the Master Fund paid $6,162,487 of these management fees.  The payment of such fees on behalf of Holdings, New Vernon India Fund LP and New Vernon India Fund II LP was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period July 1, 2011 through December 31, 2011, there were deemed distributions to Holdings, New Vernon India Fund LP and New Vernon India Fund II LP related to management fees the Master Fund paid on their behalf.

9.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at December 31, 2011.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At December 31, 2011, the fair value of Designated Investments was $328,407,593 (which excludes Designated Investments of $8,439,891 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

- 20 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through and with Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC or CitiGroup the “Prime Brokers and Clearing Agents”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and Clearing Agents and may be held by the Prime Brokers and Clearing Agents as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers and Clearing Agents may be unable to fulfill their obligations either to return the Master Fund’s securities and collateral or pay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk and/or counterparty credit risk.  These financial instruments include futures, forwards, equity access products, index products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’ capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at December 31, 2011.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

The Master Fund incurs counterparty credit risks associated with various products including cash and cash equivalents, margin deposits with brokers, equity access products and index products.  Primary counterparties include Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, CitiGroup and Goldman Sachs and/or their affiliated entities.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

- 21 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

At December 31, 2011, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At December 31, 2011, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP and New Vernon India Fund II LP which had one limited partner each.

10.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments and private equity funds.  Unfunded commitments at December 31, 2011 amounted to approximately $28,700,000 and $11,000,000 to private investments and private equity funds, respectively.

11.Financial Highlights

The following financial highlights are for the period July 1, 2011 through December 31, 2011.  Such results are not predictive of future performance.

Total return (1) (2)                                                                                                                                         (22.88)%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.21)%

Total expenses  0.61%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (0.41)% and 1.22%, respectively.  These ratios are calculated based on average limited partners’ capital.

- 22 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2011

12.Subsequent Events

The Master Fund has performed an evaluation of subsequent events through March 30, 2012, which is the date the consolidated financial statements were available to be issued, and there were no subsequent events to disclose.

- 23 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period July 1, 2010

through December 31, 2010

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

December 31, 2010

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–7

Consolidated Statement of Operations 8

Consolidated Statement of Changes in Partners’ Capital 9

Consolidated Statement of Cash Flows 10

Notes to Consolidated Financial Statements 11–24

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at December 31, 2010, and the results of their operations, the changes in their partners’ capital and their cash flows for the period July 1, 2010 through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 30, 2011

- 1 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Assets, Liabilities and Partners' Capital
December 31, 2010
(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $1,143,051,719)	$	1,559,701,543
Cash and cash equivalents		300,577,761
Foreign cash  (cost $83,962,464)		85,001,153
Due from broker		25,307,461
Unrealized appreciation on equity access products, at fair value		14,789,513
Receivable for investments sold		3,735,025
Net unrealized appreciation on forward foreign currency contract, at fair value		527,103
Dividends receivable		108,796
Total assets	$	1,989,748,355
Liabilities and Partners' Capital
Liabilities
Investment in securities sold short, at fair value  (proceeds $908,790)	$	168,533
Capital withdrawals payable		306,357,752
Due to broker		1,330,388
Payable for investments purchased		1,022,703
Accounts payable and accrued expenses		783,523
Total liabilities		309,662,899
Commitments and Contingencies (Note 9)
Partners' Capital
General partner		1,000
Limited partners		1,680,084,456
Total partners' capital		1,680,085,456
Total liabilities and partners' capital	$	1,989,748,355

The accompanying notes are an integral part of these consolidated financial statements. 

- 2 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Condensed Schedule of Investments
December 31, 2010
(in U.S. dollars)				Fair Value as a
				Percent of
			Fair	Total Partners'
Description			Value	Capital
Investment in Securities
Listed Common Stocks
India
Financial Services
	Icici Bank Ltd. (3,280,826 shares)		$84,036,995	5.00%
	Other		143,719,505	8.55%
		Total Financial Services	227,756,500	13.55%
Software			148,272,892	8.83%
Chemicals, Agro
	Reliance Industries Ltd. (4,472,795 shares)		105,924,350	6.30%
Pharmaceuticals			81,009,838	4.82%
Capital Goods			74,465,039	4.43%
Materials			62,160,657	3.70%
Automobiles			59,080,615	3.52%
Energy			57,439,059	3.42%
Engineering & Construction			53,192,513	3.17%
Consumer Staples			44,294,762	2.64%
Infrastructure			34,640,324	2.06%
Real Estate			30,486,810	1.81%
Consumer Discretionary			29,363,786	1.75%
Logistics			24,267,965	1.44%
Diversified			18,764,439	1.12%
Food, Beverage			12,085,369	0.72%
Textile			10,049,766	0.60%
Auto Ancillaries			5,688,983	0.34%
		Total India listed common stocks (Cost $786,270,457)	1,078,943,667	64.22%
United Kingdom
Real Estate			533,805	0.03%
		Total United Kingdom listed common stocks (Cost $999,346)	533,805	0.03%
		Total listed common stocks (Cost $787,269,803)	1,079,477,472	64.25%

The accompanying notes are an integral part of these consolidated financial statements. 

- 3 -

				Fair Value as a
				Percent of
			Fair	Total Partners'
Index Product			Value	Capital
India
Diversified			$27,125,559	1.61%
	Total India index product (Cost $25,087,257)		27,125,559	1.61%
Exchange Traded Funds
Hong Kong
Real Estate			1,242,747	0.07%
	Total Hong Kong exchange traded funds (Cost $1,059,385)		1,242,747	0.07%
United States of America
Diversified			11,542,041	0.69%
Financial Services			5,428,870	0.32%
	Total United States of America exchange traded
		funds (Cost $16,555,706)	16,970,911	1.01%
	Total exchange traded funds (Cost $17,615,091)		18,213,658	1.08%
Options Purchased
India
Currency			664,133	0.04%
Index			97,287	0.01%
	Total India options purchased (Cost $1,251,927)		761,420	0.05%
United States of America
Commodities			542,820	0.03%
Stocks			27,900	0.00%
	Total United States of America options purchased (Cost $1,030,379)		570,720	0.03%
	Total options purchased (Cost $2,282,306)		1,332,140	0.08%
Investment Fund
India
Multi-Strategy Arbitrage Fund			2,275,376	0.14%
	Total India investment fund (Cost $2,000,000)		2,275,376	0.14%

The accompanying notes are an integral part of these consolidated financial statements. 

- 4 -

			Fair Value as a
			Percent of
Private Investments		Fair	Total Partners'
India		Value	Capital
Non-Listed Common Stocks
Construction		$34,429,359	2.05%
Hotel		25,947,331	1.54%
Capital Goods		13,513,525	0.80%
Financial Services		12,068,901	0.72%
Commercial Services		8,371,731	0.50%
Software		3,955,127	0.24%
	Total India non-listed common stocks (Cost $75,484,624)	98,285,974	5.85%
Listed Common Stocks (carried at exchange price)
Financial Services		34,365,313	2.05%
Automobiles		7,149,648	0.43%
Textile		2,860,409	0.17%
	Total India listed common stocks (Cost $32,101,836)	44,375,370	2.65%
Real Estate
Silver Holdings Mauritius Limited, Various Cities, India		67,241,599	4.00%
Khajrana Ganesh (Carton) Limited, Gurgaon, India		51,304,262	3.05%
NV Realty Private Limited, Pune, India		37,595,288	2.24%
NV Developers Private Limited, Thane, India		37,435,853	2.23%
Carwel Estates Limited, Chennai, India		28,399,917	1.69%
Other		56,690,114	3.37%
	Total India real estate (Cost $190,777,629)	278,667,033	16.58%
Investment Fund
India
Real Estate		5,146,900	0.31%
	Total India investment fund (Cost $6,017,750)	5,146,900	0.31%

The accompanying notes are an integral part of these consolidated financial statements. 

- 5 -

					Fair Value as a
					Percent of
Private Investments, continued				Fair	Total Partners'
Investment Fund, continued				Value	Capital
Malaysia
Financial Services				$4,802,061	0.29%
		Total Malaysia investment fund (Cost $4,415,423)		4,802,061	0.29%
		Total private investments (Cost $308,797,262)		431,277,338	25.68%
		Total investments in securities (Cost $1,143,051,719)		$1,559,701,543	92.84%
Investments in Securities Sold Short
Options Written
United States of America
Commodities				$(52,290)	0.00%
		Total United States of America options written (Proceeds $332,000)		(52,290)	0.00%
India
Index				(5,938)	0.00%
Currency				(110,305)	(0.01)%
		Total India options written (Proceeds $576,790)		(116,243)	(0.01)%
		Total options written (Proceeds $908,790)		(168,533)	(0.01)%
		Total investment in securities sold short (Proceeds $908,790)		$(168,533)	(0.01)%
				Unrealized
Equity Access Products (a) (b)				Appreciation
India
Diversified				$14,789,513	0.88%
		Total unrealized appreciation on India equity access products		$14,789,513	0.88%
Forward Foreign Currency Contracts (0.03% of partners' capital) (b)
	Amount in
	Indian				Unrealized
	Rupees		Description	Maturities	Appreciation
				1/04/2011-
2,928,775,000			US Dollar sold in exchange for Indian Rupee	1/31/2011	$527,103
			Net unrealized appreciation on forward
			foreign currency contracts		$527,103

The accompanying notes are an integral part of these consolidated financial statements. 

 

- 6 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Condensed Schedule of Investments
December 31, 2010
					Fair Value as a
					Percent of
				Fair	Total Partners'
(in U.S. dollars)				Value	Capital
Futures Contracts (b)					Unrealized
	Number of		Description	Maturities	Appreciation
	Contracts				(Depreciation)
	14		Various	Various	$   -
	(a)	Equity access products are collateralized as discussed in Note 2.  The Master Fund's agreement with its
		counterparties are generally for multi-year durations.
	(b)	Derivative contracts may increase  or  decrease  the  Master  Fund's  economic  exposure  to  individual
		issuers,   industry   or   market   developments   in   addition   to   the   amounts   shown   as   unrealized
		appreciation/depreciation.
				Fair Value of
				Positions as a
				Percent of
Industry Concentration of Investments in Securities and Equity				Total Partners'
Access Products greater than 5% of Total Partners' Capital				Capital
Real Estate				18.81%
Financial Services				16.93%
Software				9.06%
Chemicals, Agro				6.30%
Capital Goods				5.24%
Country Concentration of Investments in Securities and Equity
Access Products greater than 5% of Total Partners' Capital
India				92.27%

The accompanying notes are an integral part of these consolidated financial statements. 

- 7 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Operations
For the Period July 1, 2010 through December 31, 2010
(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $24,403)	$	8,109,003
Interest		27,252
Total investment income		8,136,255
Expenses
Management fees		15,970,935
Professional fees		1,503,389
Other		295,424
Total expenses		17,769,748
Net investment loss		(9,633,493	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		155,529,709
Investments in securities sold short		(185,732	)
Derivative transactions (including equity access products and futures contracts)		15,566,611
Foreign currency transactions (including forward foreign currency contracts)		(9,429,303	)
Net realized gain		161,481,285
Net change in unrealized appreciation (depreciation) on
Investments in securities		27,667,304
Investments in securities sold short		(1,084,373	)
Derivative transactions (including equity access products and futures contracts)		3,739,377
Foreign currency transactions (including forward foreign currency contracts)		1,833,533
Net change in unrealized appreciation		32,155,841
Net realized and unrealized gain on investments		193,637,126
Net increase in partners' capital resulting from operations	$	184,003,633

The accompanying notes are an integral part of these consolidated financial statements. 

- 8 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Changes in Partners' Capital
For the Period July 1, 2010 through December 31, 2010
(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, July 1, 2010	$	1,000	$	1,783,284,592		$	1,783,285,592
Capital contributions		-		19,360,000			19,360,000
Capital withdrawals		-		(304,876,311	)		(304,876,311	)
Deemed distributions		-		(1,687,458	)		(1,687,458	)
Pro-rata allocation of net increase in partners'
capital resulting from operations		-		184,003,633			184,003,633
Partners' capital, December 31, 2010	$	1,000	$	1,680,084,456		$	1,680,085,456

The accompanying notes are an integral part of these consolidated financial statements. 

- 9 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Cash Flows
For the Period July 1, 2010 through December 31, 2010
(in U.S.dollars)
Cash flows from operating activities
Net increase in partners' capital resulting from operations	$	184,003,633
Adjustments to reconcile net increase in partners' capital resulting from operations to net
cash provided by operating activities:
Purchase of securities and equity access products		(1,011,903,981	)
Payments to cover securities sold short		(7,660,606	)
Proceeds from sales of securities and equity access products		1,222,753,280
Proceeds from securities sold short		8,898,652
Proceeds from closeouts of future contracts		14,608,788
Payments on forward foreign currency contracts		(9,429,304	)
Decrease in operating assets:
Due from broker		27,860,428
Dividends receivable		3,904,172
Increase in operating liabilities:
Due to broker		1,330,388
Accounts payable and accrued expenses		406,218
Net change in unrealized appreciation on investments in securities and derivatives transactions		(31,406,681	)
Net change in unrealized depreciation on investments in securities sold short		1,084,373
Net change in unrealized appreciation on foreign currency
(including forward foreign currency contracts)		(846,714	)
Net realized gain on investments in securities and derivatives transactions		(171,096,320	)
Net realized loss on investments in securities sold short		185,732
Net realized loss on foreign currency transactions (including forward currency contracts)		9,429,303
Net cash provided by operating activities		242,121,361
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		16,875,000
Capital withdrawals, net of change in capital withdrawals payable		(3,944,691	)
Deemed distributions		(1,687,458	)
Net cash provided by financing activities		11,242,851
Net change in cash and cash equivalents		253,364,212
Cash and cash equivalents (including foreign cash)
Beginning of period		132,214,702
End of period	$	385,578,914

The accompanying notes are an integral part of these consolidated financial statements. 

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund is governed by its agreement of limited partnership dated January 7, 2006 (the "Partnership Agreement").

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, and its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At December 31, 2010, New Vernon Holdings LP (“Holdings”), New Vernon India Fund LP and New Vernon India Fund II LP held interests in the partners’ capital of the Master Fund of 43.49%, 53.28% and 3.23%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 17.11% and 20.83%, respectively, at December 31, 2010.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP, New Vernon India Fund LP and New Vernon India Fund II LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s stated primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund which the General Partner believes represents fair value.  At December 31, 2010, the Master Fund held $56,853,226 of listed common stocks where the Master Fund's holdings relative to the average daily trading volume of these common stocks or underlying common stocks was 20 days or greater.

At December 31, 2010, $44,375,370of investments consists of securities included in Designated Investments which are valued at the last available public sale price.

At December 31, 2010, there were three investments in investment funds which were fair valued at the net asset value reported by such investment funds.  Investments in investment funds include an open-ended fund company, with a fair value of $2,275,376, investing primarily in arbitrage opportunities in Indian markets and carries monthly liquidity with no unfunded capital commitments remaining.  Investments in investment funds also includes a private equity fund investing in real estate opportunities in India, with a fair value of $5,146,900, and a private equity fund investing in opportunities in Malaysia and other emerging markets, with a fair value of $4,802,061.  The investments in private equity funds cannot be redeemed with the funds.  Distributions from each fund will be received as the underlying investments of the funds are liquidated with estimated liquidation of the underlying investments ranging from six to eight years.  The unfunded capital commitments for these private equity funds amount to approximately $11,100,000 at December 31, 2010.

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund also invests in index products.  Index products are fully-paid depository type instruments valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as an unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At December 31, 2010, there were 24 Designated Investments with an aggregate fair value of $431,277,338.  The largest individual Designated Investment at December 31, 2010 had a fair value of $67,241,599.  Generally the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially value such investments at cost which the General Partner believes is representative of fair value (excluding Designated Investments of $44,375,370 fair valued at their last available public sale price)  and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Level 3 investments include investment in

- 13 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

funds, private equity, and real estate investments.  When observable prices are not available for these investments, the General Partner uses one or more valuation techniques for which sufficient and reliable data is available.  Valuation techniques for private equity investments include utilizing multiples derived from peer company comparable data or relevant market indices.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.  Valuation techniques include direct capitalization methods utilizing expected revenue and market-based capitalization rates as well as present value methods discounting expected future cash flows utilizing market-based discount rates.

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At December 31, 2010, total securities fair valued at level 3 by the General Partner (in consultation with the Investment Manager) were $389,177,344 and represented 23.16% of total partners’ capital.  In addition, at December 31, 2010, $56,853,226 listed common stocks representing 3.38% of total partners’ capital, respectively, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks or underlying common stocks.

Authoritative guidance on fair value measurements and disclosures established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to level 1 measurements, which include unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.  The next priority is given to level 2 measurements, which include quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly.  The lowest priority is given to level 3 measurements, which includes prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

- 14 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at December 31, 2010:

	Level 1			Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	1,079,477,472		$	-		$	-	$	1,079,477,472
Index product		-			27,125,559			-		27,125,559
Exchange traded funds		18,213,658			-			-		18,213,658
Options purchased		125,187			1,206,953			-		1,332,140
Investment fund		-			-			2,275,376		2,275,376
Private investments:
Non-listed common stocks		-			-			98,285,974		98,285,974
Listed common stocks		44,375,370			-			-		44,375,370
Real estate		-			-			278,667,033		278,667,033
Investment funds		-			-			9,948,961		9,948,961
		1,142,191,687			28,332,512			389,177,344		1,559,701,543
Investments sold short:
Options written		(5,938	)		(162,595	)		-		(168,533	)
		(5,938	)		(162,595	)		-		(168,533	)
Unrealized appreciation on equity access products		-			14,789,513			-		14,789,513
Net unrealized appreciation on forward currency contracts		-			527,103			-		527,103
Total	$	1,142,185,749		$	43,486,533		$	389,177,344	$	1,574,849,626
Cash equivalents - money market fund	$	1,309,345

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period July 1, 2010 through December 31, 2010:

	Investments in Securities
				Private Investments
	Investment Fund			Non-Listed Common Stocks			Convertible Redeemable Preferred Stock			Real Estate			Investment Funds			Totals
Balance, beginning of period	$	5,467,706		$	100,409,023		$	17,410,118		$	268,159,482		$	9,572,620		$	401,018,949
Net purchases and dispositions		(3,352,140	)		(25,040	)		(18,143,213	)		(6,545,218	)		2,375,044			(25,690,567	)
Net realized losses on investments in securities		352,140			7,034			10,087,678			(119,885	)		-			10,326,967
Net change in unrealized appreciation (depreciation) on investments in securities		(192,330	)		(2,105,043	)		(9,354,583	)		17,172,654			(1,998,703	)		3,521,995
Transfers in (a)		-			-			-			-			-			-
Transfers out(a)		-			-			-			-			-			-
Balance, end of period	$	2,275,376		$	98,285,974		$	-		$	278,667,033		$	9,948,961		$	389,177,344
Net change in unrealized appreciation (depreciation) from investments still held at the end of the period	$	159,810		$	(2,098,009	)	$	-		$	17,052,769		$	(1,998,703	)	$	13,115,867
Gains from investments disposed of during the period		-			-			733,095			-			-			733,095
Total	$	159,810		$	(2,098,009	)	$	733,095		$	17,052,769		$	(1,998,703	)	$	13,848,962

(a)             The Master Fund's policy is to recognize transfers in/out at the effective date of the transfer.

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.

The Master Fund transacts in a variety of derivative instruments including options, equity access products and forward foreign currency contracts for trading purposes with each instrument’s primary risk exposure being market and foreign exchange risk.

The following table sets forth the Master Fund’s fair value of derivative instruments at December 31, 2010 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Notional or Contractual Amount			Fair Value
Investments in securities:
Options purchased:
Currency contracts	$	50,000,000		$	664,133
Commodities contracts		8,000,000			542,820
Index contracts		24,000,000			97,287
Equity contracts		4,000,000			27,900
					1,332,140
Unrealized appreciation on equity access
products:
Equity contracts		14,000,000			14,789,513
Net unrealized depreciation on forward
foreign currency contracts:
Forward foreign currency contracts		(66,000,000	)		527,103
Investments sold short:
Options written:
Currency contracts		(50,000,000	)		(110,305	)
Commodities contracts		(12,000,000	)		(52.290	)
Index contracts		(23,000,000	)		(5,938	)
					(168,533	)
Net derivatives				$	16,480,223

The Master Fund’s activity in the above derivative instruments for the period July 1, 2010 through December 31, 2010 was below or approximately at the notional or contractual amounts shown.

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period July 1, 2010 through December 31, 2010 as presented in the consolidated statement of operations:

	Net Realized Gain (Loss)				Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:				Net change in unrealized appreciation (depreciation) on derivative transactions:
Options purchased:				Options purchased:
Equity contracts	$	(741,113	)	Equity contracts	$	(136,729	)
Index contracts		(8,000,972	)	Index contracts		1,952,416
Currency contracts		2,690,456		Currency contracts		788,099
Commodity contracts		(2,732,560	)	Commodity contracts		2,649,878
Futures contracts:				Futures contracts:
Equity contracts		14,770,967		Equity contracts		-
Equity access products		5,728,932		Equity access products		(448,173	)
Options written:				Options written:
Equity contracts		262,193		Equity contracts		(26,800	)
Index contracts		1,196,970		Index contracts		263,352
Currency contracts		966,739		Currency contracts		36,752
Commodity contracts		1,425,000		Commodity contracts		(1,339,418	)
Net realized gain (loss) on foreign currency transactions:				Net change in unrealized (appreciation) depreciation on foreign currency transactions:
Forward foreign exchange contracts		(11,232,652	)	Forward foreign exchange contracts		846,714
	$	4,333,960			$	4,586,091

Income and Expense Recognition

Interest income is recorded on an accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Other operating expenses are recorded on an accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

Income Taxes

No provision has been made in the accompanying financial statements for U.S. income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sales or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

- 17 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

The Master Fund conducts its investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

The Master Fund follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period July 1, 2010 through December 31, 2010 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

Cash and Cash Equivalents

Cash and cash equivalents include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

- 18 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by counterparties.  At December 31, 2010, the aggregate leverage amounted to approximately $14,000,000 and the collateral deposited with a counterparty amounted to approximately $8,500,000.  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Index Products

The Master Fund enters into index products which are fully-paid depository type instruments provided by counterparties.  The performance for index products is recorded as part of realized or unrealized gain or loss on investments.

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for equity access products, forward foreign currency contracts and securities sold short.  At December 31, 2010, broker margin deposits were approximately $25,300,000 and are reflected in the consolidated statement of assets, liabilities and partners’ capital in due from broker.

Netting of Derivatives

The Master Fund nets unrealized gains and losses by counterparty and product type on the consolidated statement of assets, liabilities and partners' capital.

Financial Instruments

All assets and liabilities classified as financial instruments are reported at fair value.

- 19 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the period, but based upon period-end partners’ capital values, are reflected as capital withdrawals payable at the end of the period.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At December 31, 2010, such affiliated Limited Partners had aggregate capital balances of approximately $109,600,000 with total capital contributed and committed amounting to $42,100,000.  In addition, at December 31, 2010, the General Partner had aggregate capital balances in the Feeder Funds of approximately $196,500,000.

4.Management Fees

The Mauritius Companies pay the Investment Manager an annual management fee calculated and paid quarterly in advance equal to the sum of 0.5% of their quarterly net asset values.  Management fees are charged on the cost basis or written down value of Designated Investments.  The management fees paid by the Mauritius Companies are reflected in these consolidated financial statements as management fee expense which was $15,970,935 for the period July 1, 2010 through December 31, 2010.

5.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings and Feeder Funds level.

6.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services (Cayman), Ltd. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, maintaining the Master Fund’s books and records and processing capital transactions.  The Master Fund pays the Administrator a fee for these services, approximately $150,000 for the period July 1, 2010 through December 31, 2010, which is included in professional fees in the consolidated statement of operations.

7.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

From inception through December 31, 2010, the Limited Partners had total capital commitments of $1,301,600,000, of which $1,301,600,000 has been contributed to the Feeder Funds, and total withdrawals of approximately $620,800,000.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2010.

- 20 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

For the period July 1, 2010 through December 31, 2010, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings and the Feeder Funds.  For the period July 1, 2010 through December 31, 2010, the Master Fund paid $1,687,458 of these management fees.  The payment of such fees on behalf of the Feeder Funds was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period July 1, 2010 through December 31, 2010, there were deemed distributions to Holdings and the Feeder Funds related to management fees the Master Fund paid on their behalf.

8.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at December 31, 2010.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At December 31, 2010, the fair value of Designated Investments was $386,901,968 (which excludes Designated Investments of $44,375,370 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

- 21 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through and with Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC or CitiGroup the “Prime Brokers and Clearing Agents”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and Clearing Agents and may be held by the Prime Brokers and Clearing Agents as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers and Clearing Agents may be unable to fulfill their obligations either to return the Master Fund’s securities and collateral or pay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk and/or counterparty credit risk.  These financial instruments include futures, forwards, equity access products, index products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’ capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at December 31, 2010.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

The Master Fund incurs counterparty credit risks associated with various products including cash and cash equivalents, margin deposits with brokers, equity access products and index products.  Primary counterparties include Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, CitiGroup and Deutsche Bank.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

- 22 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

At December 31, 2010, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At December 31, 2010, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP which had one limited partner.

9.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments.  Unfunded commitments at December 31, 2010 amounted to approximately $48,800,000.

10.Financial Highlights

The following financial highlights are for the period July 1, 2010 through December 31, 2010.  Such results are not predictive of future performance.

Total return (1) (2)10.30%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.51)%

Total expenses  0.93%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (1.01)% and 1.87%, respectively.  These ratios are calculated based on average limited partners’ capital.

- 23 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2010

11.Subsequent Events

For the period January 1, 2011 through March 30, 2011, the Master Fund received total capital contributions of $14,300,000.

The Master Fund has performed an evaluation of subsequent events through March 30, 2011, which is the date the financial statements were available to be issued.

- 24 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period July 1, 2009

through December 31, 2009

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

December 31, 2009

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–6

Consolidated Statement of Operations 7

Consolidated Statement of Changes in Partners’ Capital 8

Consolidated Statement of Cash Flows 9

Notes to Consolidated Financial Statements 10–22

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at December 31, 2009, and the results of their operations, the changes in their partners’ capital and their cash flows for the period July1, 2009 through December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 26, 2010

- 1 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Assets, Liabilities and Partners' Capital

December 31, 2009

(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $1,219,677,431)	$	1,682,709,274
Cash and cash equivalents		73,872,076
Foreign cash (cost $69,575,408)		70,650,038
Due from broker		40,353,127
Unrealized appreciation on equity access products, at fair value		13,440,001
Receivable for investments sold		2,197,234
Capital contribution receivable		200,000
Dividends receivable		88,104
Total assets	$	1,883,509,854
Liabilities and Partners’ Capital
Investments in securities sold short, at fair value (proceeds $1,757,000)	$	604,168
Net unrealized depreciation on forward foreign currency contracts, at fair value		4,380,027
Capital withdrawals payable		185,352,033
Due to broker		1,673,294
Accounts payable and accrued expenses		582,791
Payable for investments purchased		522,263
Total liabilities		193,114,576
Commitments and Contingencies (Note 9)
Partners’ Capital
General partner		1,000
Limited partners		1,690,394,278
Total partners’ capital		1,690,395,278
Total liabilities and partners’ capital	$	1,883,509,854

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

December 31, 2009

(in U.S. dollars)			Fair Value as a
			Percent of
	Fair		Total Partners’
Description	Value		Capital
Investments in Securities
Listed Common Stocks
India
Financial Services	$	266,869,988	15.79%
Software		117,306,269	6.94%
Pharmaceuticals		92,262,209	5.46%
Automobiles		91,797,227	5.43%
Construction		81,322,303	4.81%
Materials		68,912,314	4.08%
Infrastructure		55,839,573	3.30%
Chemicals, Agro		55,830,300	3.30%
Energy		52,773,463	3.12%
Real Estate		43,359,919	2.57%
Consumer Durables		38,647,591	2.29%
Diversified		37,915,650	2.24%
Food, Beverage		33,686,187	1.99%
Auto Ancillaries		21,037,411	1.24%
Logistics		15,865,546	0.94%
Sugar		12,391,744	0.73%
Light Engineering		10,499,955	0.62%
Textile		6,629,228	0.39%
Capital Goods		5,675,520	0.34%
Telecom		5,333,963	0.32%
Hotel		5,104,110	0.30%
Total India listed common stocks (Cost $786,731,507)		1,119,060,470	66.20%
Hong Kong
Diversified		3,949,004	0.23%
Total Hong Kong listed common stocks (Cost $3,236,725)		3,949,004	0.23%
United Kingdom
Real Estate		1,673,595	0.10%
Total United Kingdom listed common stocks (Cost $3,828,800)		1,673,595	0.10%
Total listed common stocks (Cost $793,797,032)		1,124,683,069	66.53%
Index Product
India
NSE CNX Midcap Index (607,973 shares)		97,129,322	5.75%
Total India index product (Cost $48,360,115)		97,129,322	5.75%
Exchange Traded Funds
United States of America
Emerging Markets Funds		4,496,620	0.27%
Total United States of America exchanged traded funds (Cost $3,978,914)		4,496,620	0.27%

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

December 31, 2009

(in U.S. dollars)					Fair Value as a
					Percent of
			Fair		Total Partners’
Description			Value			Capital
Options Purchased
United States Of America
Commodities				$               1,796,640			0.11%
Stocks				50,400			0.00%
		Total United States of America options purchased (Cost $3,832,600)		1,847,040			0.11%
Investment Fund
India
Multi-Strategy Arbitrage Fund			5,318,356			0.31%
Total India investment fund (Cost $5,000,000)			5,318,356			0.31%
Private Investments
India
Non-Listed Common Stocks
Construction			40,496,467			2.40%
Financial Services			18,971,903			1.12%
Hotels			15,960,048			0.94%
Capital Goods			11,970,819			0.71%
Commercial Services			7,954,083			0.47%
Auto Ancillaries			3,700,041			0.22%
Software			2,795,962			0.17%
Media			2,104,064			0.12%
	Total India non-listed common stocks (Cost $92,681,997)		103,953,387			6.15%
Listed Common Stocks (carried at exchange price)
Financial Services			36,189,503			2.14%
Logistics			17,985,962			1.06%
Automobiles			4,774,315			0.29%
Textile			1,421,386			0.08%
Total India listed common stocks (Cost $54,586,980)			60,371,166			3.57%
Convertible Redeemable Preferred Stocks
Food, Beverage			14,336,660			0.85%
Textile			2,455,671			0.15%
	Total India convertible redeemable preferred stocks (Cost $10,239,578)		16,792,331			1.00%
Warrants
Textile			-			0.00%
Total India warrants (Cost $409,488)			-			0.00%
Real Estate
Silver Holdings Mauritius Limited, Various Cities, India			64,393,211			3.81%
Khajrana Ganesh (Carton) Limited, Gurgaon, India			44,495,803			2.63%
NV Realty Private Limited, Pune, India			37,628,406			2.23%
NV Developers Private Limited, Thane, India			32,033,063			1.90%
Carwel Estates Limited, Chennai, India			31,694,012			1.87%
Other			48,682,380			2.88%
Total India real estate (Cost $197,408,431)			258,926,875			15.32%

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

December 31, 2009

(in U.S. dollars)		Fair Value as a
		Percent of
	Fair	Total Partners’
Description	Value		Capital
Investment Funds
India
Real Estate	$              6,804,200		0.40%
Total India investment fund (Cost $6,017,750)	6,804,200		0.40%
Malaysia
Financial Services	2,386,908		0.14%
Total Malaysia investment fund (Cost $3,364,546)	2,386,908		0.14%
Total private investments (Cost $364,708,770)	449,234,867		26.58%
Total investments in securities (Cost $1,219,677,431)	$       1,682,709,274		99.55%
Investments in Securities Sold Short
Options Written
United States of America
Commodities	$               (604,168)		(0.04)%
Total United States of America options written (Proceeds $1,757,000)	$               (604,168)		(0.04)%

								Unrealized Appreciation
Equity Access Products (a) (b)
India
Diversified								$         9,624,569	0.57%
Financial Services								3,815,432	0.22%
Total India equity access products								13,440,001	0.79%
Unrealized appreciation on equity access products								$       13,440,001	0.79%
Forward Foreign Currency Contracts (0.26% of total partners’ capital) (b)
		Amount in Indian Rupees		Description				Maturities	Unrealized Depreciation
9,308,707,500				US Dollar sold in exchange for Indian Rupee			1/11/2010-3/31/2010		$     (4,380,027)
				Net unrealized depreciation on forward foreign currency contracts					$     (4,380,027)
	Futures Contracts (b)
			Number of Contracts		Description		Maturities		Unrealized Appreciation (Depreciation)
	8					Various	Various		$                      -

(a) Equity access products are collateralized as discussed in Note 2.  The Master Fund’s agreements with its counterparties are generally for multi-year durations.

(b) Derivative contracts may increase or decrease the Master Fund’s economic exposure to individual issuers, industry or market developments in addition to the amounts shown as unrealized appreciation/depreciation.

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

December 31, 2009

Industry Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital	Fair Value of Positions as a Percent of Total Partners’ Capital
Financial Services		19.41	%
Real Estate		18.39	%
Construction		7.21	%
Software		7.11	%
Automobile		5.72	%
Pharmaceuticals		5.46	%
Country Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital
India		99.49	%

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Operations

For the Period July 1, 2009 through December 31, 2009

(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $22,242)	$	5,933,716
Interest		33,653
Total investment income		5,967,369
Expenses
Management fees		13,170,040
Professional fees		1,255,921
Other		126,773
Total expenses		14,552,734
Net investment loss		(8,585,365	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		34,302,252
Investments in securities sold short		(3,237,686	)
Derivative transactions (including equity access products and futures contracts)		13,814,220
Foreign currency transactions (including forward foreign currency contracts)		(905,513	)
Net realized gain		43,973,273
Net change in unrealized appreciation (depreciation) on
Investments in securities		289,411,814
Investments in securities sold short		(2,284,894	)
Derivative transactions (including equity access products and futures contracts)		(1,694,744	)
Foreign currency transactions (including forward foreign currency contracts)		(6,872,148	)
Net change in unrealized appreciation		278,560,028
Net realized and unrealized gain on investments		322,533,301
Net increase in partners’ capital resulting from operations	$	313,947,936

The accompanying notes are an integral part of these consolidated financial statements.

- 7 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Changes in Partners’ Capital

For the Period July 1, 2009 through December 31, 2009

(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, July 1, 2009	$	1,000	$	1,526,465,480		$	1,526,466,480
Capital contributions		-		37,225,000			37,225,000
Capital withdrawals		-		(184,647,930	)		(184,647,930	)
Deemed distributions		-		(2,596,208	)		(2,596,208	)
Allocation of net increase in partners’ capital
resulting from operations		-		313,947,936			313,947,936
Partners' capital, December 31, 2009	$	1,000	$	1,690,394,278		$	1,690,395,278

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Cash Flows

For the Period July 1, 2009 through December 31, 2009

(in U.S. dollars)
Cash flows from operating activities
Net increase in partners' capital resulting from operations	$	313,947,936
Adjustments to reconcile net increase in partners' capital resulting from
operations to net cash used by operating activities:
Purchases of securities and equity access products		(824,499,653	)
Payments to cover securities sold short		(19,324,542	)
Proceeds from sales of securities and equity access products		731,903,164
Proceeds from securities sold short		14,087,197
Proceeds from closeouts of futures contracts		14,947,017
Payments on forward foreign currency contracts		(905,513	)
Decrease in operating assets:
Due from broker		(18,380,188	)
Dividends receivable		1,228,231
Decrease in operating liabilities:
Due to broker		1,673,294
Accounts payable and accrued expenses		(1,919,074	)
Net change in unrealized appreciation on investments in securities and derivative transactions		(287,717,070	)
Net change in unrealized depreciation of investments in securities sold short		2,284,894
Net change in unrealized depreciation on forward foreign currency contracts		6,113,845
Net realized gain on investments in securities and derivative transactions		(48,116,472	)
Net realized loss on investments in securities sold short		3,237,686
Net realized loss on foreign currency transactions		905,513
Net cash used by operating activities		(110,533,735	)
Cash flows from financing activities
Capital contributions, net of change in capital contribution receivable		37,025,000
Capital withdrawals, net of change in capital withdrawals payable		(832,346	)
Deemed distributions		(2,596,208	)
Net cash provided by financing activities		33,596,446
Net decrease in cash and cash equivalents		(76,937,289	)
Cash and cash equivalents (including foreign cash)
Beginning of period		221,459,403
End of period	$	144,522,114

The accompanying notes are an integral part of these consolidated financial statements.

- 9 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund is governed by its agreement of limited partnership dated July 7, 2006 (the "Partnership Agreement").

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, and its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At December 31, 2009, New Vernon Holdings LP (“Holdings”) and New Vernon India Fund LP held interests in the partners’ capital of the Master Fund of 50.09% and 49.91%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 27.47% and 19.52%, respectively, at December 31, 2009.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP and New Vernon India Fund LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s primary investment objective is to seek to earn a superior risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund.  At December 31, 2009, the Master Fund held $45,883,784 of listed common stocks where the Master Fund's holdings relative to the average daily trading volume of these common stocks or underlying common stocks was 20 days or greater.

At December 31, 2009, $60,371,166 of investments consists of securities included in Designated Investments which are valued at the last available public sales price.

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund also enters into index products.  Index products are fully-paid depository type instruments valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as an unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At December 31, 2009, there were 31 Designated Investments with an aggregate fair value of $449,234,867. The largest individual Designated Investment at December 31, 2009 had a fair value of $64,393,211.  At December 31, 2009, $16,792,331 consist of convertible securities valued using a discounted redemption value plus the fair value of the embedded option within such securities, if applicable.  For the remaining Designated Investments of $372,071,370 (which excludes Designated Investments of $60,371,166 fair valued at their last available public sale price), generally the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially fair value such investments at cost and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the listed or quoted price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At December 31, 2009, total securities fair valued by the General Partner (in consultation with the Investment Manager) were $388,863,701 (which excludes Designated Investments of $60,371,166 valued at their last available public sale price) and represented 23.00% of total partners’ capital.  In addition, at December 31, 2009, $45,883,784 listed common stocks representing 2.71% of total partners’ capital, respectively, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks or underlying common stocks.

Authoritative guidance on fair value measurements and disclosures established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to level 1 measurements, which include unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.  The next priority is given to level 2 measurements, which include quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly.  The lowest priority is given to level 3 measurements, which includes prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at December 31, 2009:

	Level 1		Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	1,124,683,069	$	-		$	-	$	1,124,683,069
Index product		97,129,322							97,129,322
Exchange traded funds		4,496,620		-			-		4,496,620
Options purchased		50,400		1,796,640			-		1,847,040
Investment fund		-		-			5,318,356		5,318,356
Private investments:
Non-listed common stocks		-		-			103,953,387		103,953,387
Listed common stocks		60,371,166		-			-		60,371,166
Convertible redeemable preferred stock		-		-			16,792,331		16,792,331
Real estate		-		-			258,926,875		258,926,875
Investment funds		-		-			9,191,108		9,191,108
		1,286,730,577		1,796,640			394,182,057		1,682,709,274
Investments sold short:
Options written		-		(604,168	)		-		(604,168	)
		-		(604,168	)		-		(604,168	)
Unrealized appreciation on equity access products		-		13,440,001			-		13,440,001
Net unrealized depreciation on forward currency contracts		-		(4,380,027	)		-		(4,380,027	)
Total	$	1,286,730,577	$	10,252,446		$	394,182,057	$	1,691,165,080
Cash equivalents- money market fund	$	12,521,000

- 13 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period July 1, 2009 through December 31, 2009:

	Investments in Securities
			Private Investments
	Investment Fund		Non-Listed Common Stocks			Convertible Redeemable Preferred Stock			Real Estate			Investment Funds		Warrants			Totals
Balance, beginning of period	$	5,068,364	$	87,287,223		$	18,215,815		$	247,428,822		$	7,682,177	$	-		$	365,682,401
Net purchases and dispositions				(2,336,027	)		(3,183,618	)		13,032,360								7,512,715
Net realized losses on investments in securities		-		(111,014	)		(91,955	)		-			-		(139,737	)		(342,706	)
Net change in unrealized appreciation (depreciation) on investments in securities		249,992		19,113,205			1,852,089			(1,534,307	)		1,508,931		139,737			21,329,647
Transfers in and out		-		-			-			-			-		-			-
Balance, end of period	$	5,318,356	$	103,953,387		$	16,792,331		$	258,926,875		$	9,191,108	$	-		$	394,182,057
Net change in unrealized appreciation (depreciation) from investments still held at the end of the period	$	249,992	$	19,002,191		$	1,760,134		$	(1,534,307	)	$	1,508,931	$	-		$	20,986,941
Losses from investments disposed of during the period		-		-			-			-			-		(139,737	)		(139,737	)
Total	$	249,992	$	19,002,191		$	1,760,134		$	(1,534,307	)	$	1,508,931	$	(139,737	)	$	20,847,204

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.

Authoritative guidance on disclosures about derivative instruments and hedging activities requires enhanced disclosures about an entity’s derivative and hedging activities.

The Master Fund transacts in a variety of derivative instruments including equity access products and forward foreign currency contracts for trading purposes with each instrument’s primary risk exposure being market and foreign exchange risk.

- 14 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

The following table sets forth the Master Fund’s fair value of derivative instruments at December 31, 2009 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Notional or Contractual Amount			Fair Value
Investments in securities:
Options purchased:
Commodity contracts	$	35,000,000		$	1,796,640
Equity contracts		8,000,000			50,400
					1,847,040
Unrealized appreciation on equity access products:
Equity contracts		15,000,000			13,440,001
Net unrealized depreciation on forward foreign currency contracts:
Forward foreign currency contracts		(195,000,000	)		(4,380,027	)
Investments sold short:
Options written:
Commodity contracts		(45,000,000	)		(604,168	)
					(604,168	)
Net derivatives				$	10,302,846

The Master Fund’s activity in the above derivative instruments for the period July 1, 2009 through December 31, 2009 was below or approximately at the notional or contractual amounts shown.

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period July 1, 2009 through December 31, 2009 as presented in the consolidated statement of operations:

	Net Realized Gain (Loss)				Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:				Net change in unrealized appreciation (depreciation) on derivative transactions:
Options purchased:				Options purchased:
Equity contracts	$	(9,951,562	)	Equity contracts	$	333,711
Foreign exchange contracts		3,457,662		Foreign exchange contracts		(5,035,600	)
Commodity contracts		-		Commodity contracts		(284,526	)
Futures contracts:				Futures contracts:
Equity contracts		12,346,143		Equity contracts		-
Equity access products		1,183,425		Equity access products		7,246,130
Options written:				Options written:
Equity contracts		2,520,177		Equity contracts		(239,599	)
Foreign exchange contracts		4,258,375		Foreign exchange contracts		(4,015,352	)
Commodity contracts		-		Commodity contracts		300,492
Net realized gain (loss) on foreign currency transactions:				Net change in unrealized (appreciation) depreciation on foreign currency transactions:
Foreign exchange contracts		(11,863	)	Foreign exchange contracts		(6,113,845	)
	$	13,802,357			$	(7,808,589	)

Income and Expense Recognition

Interest income is recorded on an accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Other operating expenses are recorded on an accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

Income Taxes

No provision has been made in the accompanying financial statements for U.S. income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sale or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Master Fund conducts its investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2006.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

The Master Fund recognizes interest and penalties related to the underpayment of income taxes in operating expenses; however, during the period July 1, 2009 through December 31, 2009, no such interest and penalties were incurred.

The Master Fund follows authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period July 1, 2009 through December 31, 2009 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

Cash and Cash Equivalents

Cash and cash equivalents include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued daily at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by counterparties.  At December 31, 2009, the aggregate leverage amounted to approximately $15,000,000 and the collateral deposited with a counterparty amounted to approximately $8,500,000.  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Index Products

The Master Fund enters into index products which are fully-paid depository type instruments provided by counterparties.  Performance on index products is recorded as part of realized or unrealized gain or loss on investments.

- 17 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for equity access products, forward foreign currency contracts and securities sold short.  At December 31, 2009, broker margin deposits were approximately $40,350,000 and are reflected in the consolidated statement of assets, liabilities and partners’ capital in due from broker.

Netting of Derivatives

The Master Fund nets realized and unrealized gains and losses by counterparty and product type.

Financial Instruments

All assets and liabilities classified as financial instruments are reported at fair value.

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the year, but based upon year-end partners’ capital values, are reflected as capital withdrawals payable at the end of the year.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At December 31, 2009, total capital contributed and committed to by such affiliated Limited Partners was $45,069,000.

4.Management Fees

The Mauritius Companies pay the Investment Manager an annual management fee calculated and paid quarterly in advance equal to the sum of 0.5% of their quarterly net asset values.  Management fees are charged on the cost basis or written down value of Designated Investments.  The management fees paid by the Mauritius Companies are reflected in these consolidated financial statements as management fee expense which was $13,170,040 for the period July 1, 2009 through December 31, 2009.

5.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings and Feeder Funds level.

- 18 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

6.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services (Cayman), Ltd. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, maintaining the Master Fund’s books and records and processing capital transactions.  The Master Fund pays the Administrator a fee for these services, approximately $150,000 for the period July 1, 2009 through December 31, 2009, which is included in professional fees in the consolidated statement of operations.

7.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

From inception through December 31, 2009, the Limited Partners had total capital commitments of $1,202,615,000, of which $1,202,115,000 has been contributed to the Feeder Funds, and total withdrawals of approximately $311,000,000.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective December 31, 2009.

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

During the period ended December 31, 2009, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings and the Feeder Funds.  For the period July 1, 2009 through December 31, 2009, the Master Fund paid $2,596,208 of these management fees.  The payment of such fees on behalf of the Feeder Funds was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period July 1, 2009 through December 31, 2009, there were deemed distributions to Holdings and the Feeder Funds related to management fees the Master Fund paid on their behalf.

8.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

- 19 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at December 31, 2009.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At December 31, 2009, the fair value of Designated Investments was $388,863,701 (which excludes Designated Investments of $60,371,166 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, or CitiGroup, the “Prime Brokers”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and may be held by the Prime Brokers as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers may be unable to fulfill their obligations either to return the Master Fund’s securities and collateral or pay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk and/or counterparty credit risk.  These financial instruments include futures, forwards, equity access products, index products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’ capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

- 20 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at December 31, 2009.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

The Master Fund incurs counterparty credit risks associated with various products including cash and cash equivalents, margin deposits with brokers, equity access products and index products.  Primary counterparties include Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, CitiGroup and Deutsche Bank.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

At December 31, 2009, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At December 31, 2009, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP which had one limited partner.

9.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments.  Unfunded commitments at December 31, 2009 amounted to approximately $49,500,000.

- 21 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

December 31, 2009

10.Financial Highlights

The following financial highlights are for the period July 1, 2009 through December 31, 2009.  Such results are not predictive of future performance.

Total return (1) (2)20.32%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.51)%

Total expenses  0.86%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (1.02)% and 1.73%, respectively.  These ratios are calculated based on average limited partners’ capital.

11.Subsequent Events

For the period January 1, 2010 through March 26, 2010, the Master Fund received total capital contributions of $30,000,000.

The Master Fund has performed an evaluation of subsequent events through March 26, 2010, which is the date the financial statements were available to be issued.

- 22 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period January 1, 2011

through June 30, 2011

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

June 30, 2011

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–6

Consolidated Statement of Operations 7

Consolidated Statement of Changes in Partners’ Capital 8

Consolidated Statement of Cash Flows 9

Notes to Consolidated Financial Statements 10–23

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at June 30, 2011, and the results of their operations, the changes in their partners’ capital and their cash flows for the period January 1, 2011 through June 30, 2011, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

September 23, 2011

- 1 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Assets, Liabilities and Partners' Capital
June 30, 2011
(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $1,061,838,783)	$	1,342,407,719
Cash and cash equivalents		119,331,649
Foreign cash  (cost $58,601,839)		58,885,352
Due from broker		41,716,495
Receivable for investments sold		11,680,714
Unrealized appreciation on equity access products, at fair value		7,322,500
Dividends receivable		3,471,223
Total assets	$	1,584,815,652
Liabilities and Partners' Capital
Liabilities
Investment in securities sold short, at fair value  (proceeds $357,500)	$	17,259
Capital withdrawals payable		13,890,684
Payable for investments purchased		12,282,930
Contributions received in advance		2,625,000
Accounts payable and accrued expenses		459,264
Net unrealized depreciation on forward foreign currency contracts, at fair value		199,394
Total liabilities		29,474,531
Commitments and Contingencies (Note 9)
Partners' Capital
General partner		1,000
Limited partners		1,555,340,121
Total partners' capital		1,555,341,121
Total liabilities and partners' capital	$	1,584,815,652

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Condensed Schedule of Investments
June 30, 2011
(in U.S. dollars)			Fair Value as a
			Percent of
		Fair	Total Partners'
Description		Value	Capital
Investment in Securities
Listed Common Stocks
India
Financial Services		$225,920,978	14.54%
Diversified		95,035,054	6.11%
Software		72,600,987	4.67%
Consumer Products		58,932,966	3.79%
Pharmaceuticals		52,266,103	3.36%
Telecom		50,876,419	3.27%
Construction		41,596,172	2.67%
Automobiles		38,704,398	2.49%
Energy		37,693,896	2.42%
Chemicals, Agro		37,634,379	2.42%
Materials		37,077,798	2.38%
Real Estate		28,154,990	1.81%
Logistics		22,871,535	1.47%
Information Technology		21,158,390	1.36%
Infrastructure		20,684,412	1.33%
Food, Beverage		13,728,739	0.88%
Textile		10,494,456	0.67%
Consumer Discretionary		9,067,604	0.58%
Auto Ancilliaries		6,753,853	0.43%
Hotel		5,029,428	0.32%
Others		13,352,963	0.86%
	Total India listed common stocks (Cost $721,034,619)	899,635,520	57.83%
Indonesia
Financial Services		19,979,208	1.28%
	Total Indonesia listed common stocks (Cost $20,003,714)	19,979,208	1.28%
United States of America
Financial Services		7,628,427	0.49%
Food, Beverage		4,206,131	0.27%
	Total United States of America listed common stocks
	(Cost $11,356,574)	11,834,558	0.76%
United Kingdom
Real Estate		120,795	0.01%
	Total United Kingdom listed common stocks (Cost $291,018)	120,795	0.01%
	Total listed common stocks (Cost $752,685,925)	931,570,081	59.88%

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

			Fair Value as a
			Percent of
		Fair	Total Partners'
Options Purchased		Value	Capital
India
Currency		$43,738	0.00%
Index		74,276	0.00%
	Total India options purchased (Cost $850,103)	118,014	0.00%
United States of America
Commodities		397,570	0.03%
	Total United States of America options purchased (Cost $834,150)	397,570	0.03%
	Total options purchased (Cost $1,684,253)	515,584	0.03%
Private Investments
India
Non-Listed Common Stocks
Construction		28,549,699	1.84%
Hotel		26,980,458	1.73%
Commercial Services		11,047,654	0.71%
Financial Services		10,235,226	0.66%
Capital Goods		5,998,745	0.39%
Software		3,567,523	0.23%
	Total India non-listed common stocks (Cost $75,484,624)	86,379,305	5.56%
Listed Common Stocks (carried at exchange price)
Financial Services		19,117,325	1.23%
Automobiles		7,864,523	0.51%
Textile		3,617,474	0.23%
	Total India listed common stocks (Cost $31,703,998)	30,599,322	1.97%
Real Estate
Silver Holdings Mauritius Limited, Various Cities, India		64,352,023	4.15%
Khajrana Ganesh (Carton) Limited, Gurgaon, India		55,810,956	3.59%
NV Developers Private Limited, Thane, India		41,186,244	2.65%
NV Realty Private Limited, Pune, India		40,142,824	2.58%
Carwel Estates Limited, Chennai, India		26,808,326	1.72%
Other		55,673,308	3.58%
	Total India real estate (Cost $190,792,629)	283,973,681	18.27%

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

			Fair Value as a
			Percent of
Private Investments, continued		Fair	Total Partners'
Investment Fund		Value	Capital
India
Real Estate		$5,772,300	0.37%
	Total India investment fund (Cost $6,017,750)	5,772,300	0.37%
Malaysia
Diversified		3,597,446	0.23%
	Total Malaysia investment fund (Cost $3,469,604)	3,597,446	0.23%
	Total private investments (Cost $307,468,605)	410,322,054	26.40%
	Total investments in securities (Cost $1,061,838,783)	$1,342,407,719	86.31%
Investments in Securities Sold Short
Options Written
United States of America
Commodities		$(12,450)	0.00%
	Total United States of America options written (Proceeds $332,000)	(12,450)	0.00%
India
Currency		(4,809)	0.00%
	Total India options written (Proceeds $25,500)	(4,809)	0.00%
	Total options written (Proceeds $357,500)	(17,259)	(0.00)%
	Total investment in securities sold short (Proceeds $357,500)	$(17,259)	(0.00)%

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

					Fair Value as a
					Percent of
				Fair	Total Partners'
				Value	Capital
				Unrealized
Equity Access Products (a) (b)				Appreciation
India
Diversified				$7,322,500	0.47%
		Total unrealized appreciation on India equity access products		$7,322,500	0.47%
Forward Foreign Currency Contracts ((0.01%) of partners' capital) (b)
	Amount in
	Indian				Unrealized
	Rupees		Description	Maturities	Appreciation
1,355,700,000			US Dollar sold in exchange for Indian Rupee	July 2011	$(199,394)
			Net unrealized depreciation on forward
			foreign currency contracts		$(199,394)
Futures Contracts (b)					Unrealized
	Number of		Description	Maturities	Appreciation
	Contracts				(Depreciation)
				July 2011 -
	18		Various	September 2011	$-
	(a)	Equity access products are collateralized as discussed in Note 2.  The Master Fund's agreement with its
		counterparties are generally for multi-year durations.
	(b)	Derivative contracts may increase  or  decrease  the  Master  Fund's  economic  exposure  to  individual
		issuers,   industry   or   market   developments   in   addition   to   the   amounts   shown   as   unrealized
		appreciation/depreciation.
				Fair Value of
				Positions as a
				Percent of
Industry Concentration of Investments in Securities and Equity				Total Partners'
Access Products greater than 5% of Total Partners' Capital				Capital
Real Estate				20.45%
Financial Services				18.43%
Diversified				6.58%
Country Concentration of Investments in Securities and Equity
Access Products greater than 5% of Total Partners' Capital
India				84.47%

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Operations
For the Period January 1, 2011 through June 30, 2011
(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $73,658)	$	6,832,485
Interest		11,089
Total investment income		6,843,574
Expenses
Management fees		10,909,574
Professional fees		1,535,559
Other		120,546
Total expenses		12,565,679
Net investment loss		(5,722,105	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		27,351,557
Investments in securities sold short		(46,933	)
Derivative transactions (including equity access products and futures contracts)		(5,071,615	)
Foreign currency transactions (including forward foreign currency contracts)		(1,259,103	)
Net realized gain		20,973,906
Net change in unrealized appreciation (depreciation) on
Investments in securities		(136,262,399	)
Investments in securities sold short		400,016
Derivative transactions (including equity access products and futures contracts)		(8,085,532	)
Foreign currency transactions (including forward foreign currency contracts)		(1,313,614	)
Net change in unrealized depreciation		(145,261,529	)
Net realized and unrealized loss on investments		(124,287,623	)
Net decrease in partners' capital resulting from operations	$	(130,009,728	)

The accompanying notes are an integral part of these consolidated financial statements.
 

- 7 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Changes in Partners' Capital
For the Period January 1, 2011 through June 30, 2011
(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, January 1, 2011	$	1,000	$	1,680,084,456		$	1,680,085,456
Capital contributions		-		23,300,000			23,300,000
Capital withdrawals		-		(13,759,491	)		(13,759,491	)
Deemed distributions		-		(4,275,116	)		(4,275,116	)
Pro-rata allocation of net decrease in partners'
capital resulting from operations		-		(130,009,728	)		(130,009,728	)
Partners' capital, June 30, 2011	$	1,000	$	1,555,340,121		$	1,555,341,121

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

NVH I LP
(a Cayman Islands exempted limited partnership)
Consolidated Statement of Cash Flows
For the Period January 1, 2011 through June 30, 2011
(in U.S.dollars)
Cash flows from operating activities
Net decrease in partners' capital resulting from operations	$	(130,009,728	)
Adjustments to reconcile net decrease in partners' capital resulting from operations to net
cash provided by operating activities:
Purchase of securities and equity access products		(851,236,935	)
Payments to cover securities sold short		(676,973	)
Proceeds from sales of securities and equity access products		959,189,123
Proceeds from securities sold short		4,252,627
Payments from closeouts of future contracts		(5,318,650	)
Payments on forward foreign currency contracts		(1,259,103	)
Increase in operating assets:
Due from broker		(16,409,034	)
Dividends receivable		(3,362,427	)
Decrease in operating liabilities:
Due to broker		(1,330,388	)
Accounts payable and accrued expenses		(324,256	)
Net change in unrealized appreciation on investments in securities and derivatives transactions		144,347,931
Net change in unrealized depreciation on investments in securities sold short		(400,016	)
Net change in unrealized depreciation on foreign currency
(including forward foreign currency contracts)		726,497
Net realized gain on investments in securities and derivatives transactions		(22,279,942	)
Net realized loss on investments in securities sold short		46,933
Net realized loss on foreign currency transactions (including forward currency contracts)		1,259,103
Net cash provided by operating activities		77,214,762
Cash flows from financing activities
Capital contributions, net of change in capital contributions received in advance		25,925,000
Capital withdrawals, net of change in capital withdrawals payable		(306,226,559	)
Deemed distributions		(4,275,116	)
Net cash used by financing activities		(284,576,675	)
Net decrease in cash and cash equivalents		(207,361,913	)
Cash and cash equivalents (including foreign cash)
Beginning of period		385,578,914
End of period	$	178,217,001

The accompanying notes are an integral part of these consolidated financial statements.

- 9 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund was governed by its agreement of limited partnership dated January 7, 2006 (the "Partnership Agreement") which was amended and restated on August 1, 2011.

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”) and its wholly-owned Singapore subsidiary, Marjoram Pte. Limited (“Marjoram”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At June 30, 2011, New Vernon Holdings LP (“Holdings”), New Vernon India Fund LP and New Vernon India Fund II LP held interests in the partners’ capital of the Master Fund of 43.74%, 53.08% and 3.18%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 17.31% and 21.50%, respectively, at June 30, 2011.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP, New Vernon India Fund LP and New Vernon India Fund II LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s stated primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund which the General Partner believes represents fair value.  At June 30, 2011, the Master Fund held $49,470,851 of listed common stocks where the Master Fund's holdings relative to the average daily trading volume of these common stocks or underlying common stocks was 20 days or greater.

At June 30, 2011, $30,599,322 of investments consists of securities included in Designated Investments which are valued at the last available public sale price.

At June 30, 2011, there were two investments in investment funds which were fair valued at the net asset value reported by such investment funds.  Investments in investment funds includes a private equity fund investing in real estate opportunities in India, with a fair value of $5,772,300, and a private equity fund investing in opportunities in Malaysia and other emerging markets, with a fair value of $3,597,446.  The investments in private equity funds cannot be redeemed.  Distributions from each fund will be received as the underlying investments of the funds are liquidated with estimated liquidation of the underlying investments ranging from six to eight years.

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The Master Fund also invests in index products.  Index products are fully-paid depository type instruments valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as an unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At June 30, 2011, there were 24 Designated Investments with an aggregate fair value of $410,322,054.  The largest individual Designated Investment at June 30, 2011 had a fair value of $64,352,023.  Generally the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially value such investments at cost which the General Partner believes is representative of fair value (excluding Designated Investments of $30,599,322 fair valued at their last available public sale price)  and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Level 3 investments include investments in funds, private equity and real estate investments.  When observable prices are not available for these investments, the General Partner uses one or more valuation techniques for which sufficient and reliable data is available.  Valuation techniques for private equity investments include utilizing multiples derived from peer company comparable data or relevant market indices.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.  Valuation techniques include direct capitalization methods utilizing expected revenue and market-based capitalization rates as well as present value methods discounting expected future cash flows utilizing market-based discount rates.

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At June 30, 2011, total securities at level 3 fair valued by the General Partner (in consultation with the Investment Manager) were $379,722,732 and represented 24.41% of total partners’ capital.  In addition, at June 30, 2011, $49,470,851 of listed common stocks representing 3.18% of total partners’ capital, respectively, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks or underlying common stocks.

Authoritative guidance on fair value measurements and disclosures established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to level 1 measurements, which include unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.  The next priority is given to level 2 measurements, which include quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly.  The lowest priority is given to level 3 measurements, which includes prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

- 13 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at June 30, 2011:

	Level 1		Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	931,570,081	$	-		$	-	$	931,570,081
Options purchased		74,276		441,308			-		515,584
Private investments:
Non-listed common stocks		-		-			86,379,305		86,379,305
Listed common stocks		30,599,322		-			-		30,599,322
Real estate		-		-			283,973,681		283,973,681
Investment funds		-		-			9,369,746		9,369,746
		962,243,679		441,308			379,722,732		1,342,407,719
Investments sold short:
Options written		-		(17,259	)		-		(17,259	)
		-		(17,259	)		-		(17,259	)
Unrealized appreciation on equity access products		-		7,322,500			-		7,322,500
Net unrealized depreciation on forward currency contracts		-		(199,394	)		-		(199,394	)
Total	$	962,243,679	$	7,547,155		$	379,722,732	$	1,349,513,566
Cash equivalents - money market fund	$	23,641,163

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period January 1, 2011 through June 30, 2011:

	Investments in Securities
				Private Investments
	Investment Fund			Non-Listed Common Stocks			Real Estate		Investment Funds			Totals
Balance, beginning of period	$	2,275,376		$	98,285,974		$	278,667,033	$	9,948,961		$	389,177,344
Purchases		-			-			15,000		-			15,000
Dispositions		(2,203,264	)		-			-		(1,948,978	)		(4,152,242	)
Net realized losses on investments in securities		203,264			-			-		1,003,158			1,206,422
Net change in unrealized appreciation (depreciation) on investments in securities		(275,376	)		(11,906,669	)		5,291,648		366,605			(6,523,792	)
Transfers in (a)		-			-			-		-			-
Transfers out (a)		-			-			-		-			-
Balance, end of period	$	-		$	86,379,305		$	283,973,681	$	9,369,746		$	379,722,732
Net change in unrealized appreciation (depreciation) from investments still held at the end of the period	$	-		$	(11,906,669	)	$	5,291,648	$	1,369,763		$	(5,245,258	)
Total	$	-		$	(11,906,669	)	$	5,291,648	$	1,369,763		$	(5,245,258	)

(a)             The Master Fund's policy is to recognize transfers in/out at the effective date of the transfer.

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.

- 14 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The Master Fund transacts in a variety of derivative instruments including options, equity access products and forward foreign currency contracts for trading purposes with each instrument’s primary risk exposure being market and foreign exchange risk.

The following table sets forth the Master Fund’s fair value of derivative instruments at June 30, 2011 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Notional or Contractual Amount			Fair Value
Investments in securities:
Options purchased:
Currency contracts	$	25,000,000		$	43,738
Commodities contracts		8,000,000			397,570
Index contracts		45,000,000			74,276
					515,584
Futures purchased: Equity contracts		8,000,000			-
Unrealized appreciation on equity access
products:
Equity contracts		5,000,000			7,322,500
Net unrealized depreciation on forward
foreign currency contracts:
Forward foreign currency contracts		(30,000,000	)		(199,394	)
Investments sold short:
Options written:
Currency contracts		(10,000,000	)		(4,809	)
Commodities contracts		(12,000,000	)		(12,450	)
					(17,259	)
Futures written: Equity contracts		(2,000,000	)		-
Net derivatives				$	7,621,431

The Master Fund’s activity in the above derivative instruments for the period January 1, 2011 through June 30, 2011 was below or approximately at the notional or contractual amounts shown.

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period January 1, 2011 through June 30, 2011 as presented in the consolidated statement of operations:

	Net Realized Gain (Loss)				Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:				Net change in unrealized appreciation (depreciation) on derivative transactions:
Options purchased:				Options purchased:
Equity contracts	$	(2,425,339	)	Equity contracts	$	168,328
Index contracts		(2,025,187	)	Index contracts		(1,437	)
Currency contracts		(475,516	)	Currency contracts		(240,145	)
Commodity contracts		176,767		Commodity contracts		(145,250	)
Futures contracts:				Futures contracts:
Equity contracts		(5,448,598	)	Equity contracts		-
Equity access products		2,718,181		Equity access products		(7,467,012	)
Options written:				Options written:
Equity contracts		1,336,689		Equity contracts		-
Index contracts		850,321		Index contracts		(263,352	)
Currency contracts		307,500		Currency contracts		(176,504	)
Commodity contracts		(86,433	)	Commodity contracts		39,840
Net realized gain (loss) on foreign currency transactions:				Net change in unrealized (appreciation) depreciation on foreign currency transactions:
Forward foreign exchange contracts		(1,207,355	)	Forward foreign exchange contracts		(726,497	)
	$	(6,278,970	)		$	(8,812,029	)

Income and Expense Recognition

Interest income is recorded on an accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Other operating expenses are recorded on an accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

Income Taxes

No provision has been made in the accompanying financial statements for U.S. income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sales or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The Master Fund conducts investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

Marjoram is a tax resident of Singapore and expects to obtain benefits under Singapore’s tax exemption for resident funds.  To obtain these benefits, Marjoram must meet certain tests and conditions, including the establishment as a Singapore tax resident and other related requirements.  Marjoram’s application as a resident fund has been approved by the Singaporean authorities.  Under the tax exemption for resident fund scheme, investment income such as profits, gains, dividends and interest from specified investments is exempt from Singapore tax.  Management believes that Marjoram qualifies to obtain the benefit of the tax exemption for resident funds and, accordingly, no provision for Singaporean income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

The Master Fund follows the authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period January 1, 1011 through June 30, 2011 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

Cash and Cash Equivalents

Cash and cash equivalents include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

- 17 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by counterparties.  At June 30, 2011, the aggregate leverage amounted to approximately $5,000,000 and the collateral deposited with a counterparty amounted to approximately $8,500,000.  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Index Products

The Master Fund enters into index products which are fully-paid depository type instruments provided by counterparties.  The performance for index products is recorded as part of realized or unrealized gain or loss on investments.

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for equity access products, forward foreign currency contracts and securities sold short.  At June 30, 2011, broker margin deposits were approximately $41,700,000 and are reflected in the consolidated statement of assets, liabilities and partners’ capital in due from broker.

Netting of Derivatives

The Master Fund nets unrealized gains and losses by counterparty and product type on the consolidated statement of assets, liabilities and partners' capital.

Financial Instruments

All assets and liabilities classified as financial instruments are reported at fair value.

- 18 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the period, but based upon period-end partners’ capital values, are reflected as capital withdrawals payable at the end of the period.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At June 30, 2011, such affiliated Limited Partners had aggregate capital balances of approximately $100,900,000 with total capital contributed and committed amounting to $42,100,000.  In addition, at June 30, 2011, the General Partner had aggregate capital balances in the Feeder Funds of approximately $174,800,000.

4.Management Fees

The Mauritius Companies and Marjoram pay the Investment Manager and its wholly-owned subsidiaries a management fee on a quarterly basis of such an amount as may be mutually agreed and subject to reasonable adjustments.  The management fees paid by the Mauritius Companies and Marjoram are reflected in these consolidated financial statements as management fee expense which was $10,909,574 for the period January 1, 2011 through June 30, 2011.

5.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings, New Vernon India Fund LP and New Vernon India Fund II LP levels.

6.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services (Cayman), Ltd. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, processing capital transactions, monthly and quarterly procedures and functions specified in the agreement.  The Master Fund pays the Administrator a fee for these services, approximately $150,000 for the period January 1, 2011 through June 30, 2011, which is included in professional fees in the consolidated statement of operations.

7.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

From inception through June 30, 2011, the Limited Partners had total capital commitments of $1,324,900,000, of which $1,324,900,000 has been contributed to the Feeder Funds, and total withdrawals of approximately $634,600,000.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective June 30, 2011.

- 19 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

For the period January 1, 2011 through June 30, 2011, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings, New Vernon India Fund LP and New Vernon India Fund II LP.  For the period January 1, 2011 through June 30, 2011, the Master Fund paid $4,275,116 of these management fees.  The payment of such fees on behalf of Holdings, New Vernon India Fund LP and New Vernon India Fund II LP was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period January 1, 2011 through June 30, 2011, there were deemed distributions to Holdings, New Vernon India Fund LP and New Vernon India Fund II LP related to management fees the Master Fund paid on their behalf.

8.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at June 30, 2011.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At June 30, 2011, the fair value of Designated Investments was $379,722,732 (which excludes Designated Investments of $30,599,322 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

- 20 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through and with Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC or CitiGroup the “Prime Brokers and Clearing Agents”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and Clearing Agents and may be held by the Prime Brokers and Clearing Agents as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers and Clearing Agents may be unable to fulfill their obligations either to return the Master Fund’s securities and collateral or pay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk and/or counterparty credit risk.  These financial instruments include futures, forwards, equity access products, index products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’ capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at June 30, 2011.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

- 21 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

The Master Fund incurs counterparty credit risks associated with various products including cash and cash equivalents, margin deposits with brokers, equity access products and index products.  Primary counterparties include Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, CitiGroup and Goldman Sachs.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

At June 30, 2011, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At June 30, 2011, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP and New Vernon India Fund II LP which had one limited partner each.

9.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments and private equity funds.  Unfunded commitments at June 30, 2011 amounted to approximately $37,800,000 and $11,100,000 to private investments and private equity funds, respectively.

10.Financial Highlights

The following financial highlights are for the period January 1, 2011 through June 30, 2011.  Such results are not predictive of future performance.

Total return (1) (2)(7.70)%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.36)%

Total expenses  0.79%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (0.72)% and 1.59%, respectively.  These ratios are calculated based on average limited partners’ capital.

- 22 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2011

11.Subsequent Events

For the period July 1, 2011 through September 23, 2011, the Master Fund received total capital contributions of $2,750,000.

The Master Fund has performed an evaluation of subsequent events through September 23, 2011, which is the date the consolidated financial statements were available to be issued, and there were no subsequent events to disclose.

- 23 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period January 1, 2010

through June 30, 2010

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

June 30, 2010

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–6

Consolidated Statement of Operations 7

Consolidated Statement of Changes in Partners’ Capital 8

Consolidated Statement of Cash Flows 9

Notes to Consolidated Financial Statements 10–22

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at June 30, 2010, and the results of their operations, the changes in their partners’ capital and their cash flows for the period January 1, 2010 through June 30, 2010, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

September 30, 2010

- 1 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Assets, Liabilities and Partners' Capital

June 30, 2010

(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $1,202,236,915)	$	1,587,031,885
Foreign cash (cost $70,996,119)		70,887,225
Cash and cash equivalents		61,327,477
Due from broker		53,167,889
Unrealized appreciation on equity access products, at fair value		15,237,687
Receivable for investments sold		9,046,415
Dividends receivable		4,012,968
Total assets	$	1,800,711,546
Liabilities and Partners’ Capital Liabilities
Investments in securities sold short, at fair value (proceeds $2,952,960)	$	1,128,330
Net unrealized depreciation on forward foreign currency contracts, at fair value		319,611
Payable for investments purchased		7,689,576
Capital withdrawals payable		5,426,132
Capital contributions received in advance		2,485,000
Accounts payable and accrued expenses		377,305
Total liabilities		17,425,954
Commitments and Contingencies (Note 9)
Partners’ Capital
General partner		1,000
Limited partners		1,783,284,592
Total partners’ capital		1,783,285,592
Total liabilities and  partners’ capital	$	1,800,711,546

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

June 30, 2010

(in U.S. dollars)		Fair Value as a
		Percent of
	Fair	Total Partners’
Description	Value		Capital
Investments in Securities
Listed Common Stocks
India
Financial Services	$           274,203,477		15.38%
Software	110,837,360		6.22%
Construction	93,298,380		5.23%
Infrastructure	73,881,674		4.14%
Chemicals, Agro	66,925,501		3.75%
Automobiles	66,722,077		3.74%
Pharmaceuticals	59,930,744		3.36%
Real Estate	59,561,289		3.34%
Diversified	48,603,704		2.72%
Energy	44,483,549		2.49%
Materials	39,154,830		2.20%
Consumer Durables	30,898,496		1.73%
Logistics	29,524,499		1.66%
Consumer Discretionary	25,845,335		1.45%
Auto Ancillaries	21,294,239		1.19%
Capital Goods	13,493,855		0.76%
Hotel	6,920,712		0.39%
Textile	6,237,697		0.35%
Light Engineering	4,967,104		0.28%
Food, Beverage	338,249		0.02%
Total India listed common stocks (Cost $824,951,943)	1,077,122,771		60.40%
Hong Kong
Real Estate	996,341		0.06%
Total Hong Kong listed common stocks (Cost $1,059,385)	996,341		0.06%
Luxembourg
Consumer Discretionary	1,483,038		0.08%
Total Luxembourg listed common stocks (Cost $1,315,122)	1,483,038		0.08%
United Kingdom
Real Estate	1,957,795		0.11%
Total United Kingdom listed common stocks (Cost $3,828,800)	1,957,795		0.11%
Total listed common stocks (Cost $831,155,250)	1,081,559,945		60.65%
Index Product
India
Diversified	52,102,207		2.92%
Total India index product (Cost $27,937,468)	52,102,207		2.92%
Exchange Traded Funds
Hong Kong
Diversified	5,496,427			0.31%
Real Estate	2,271,834			0.13%
Total Hong Kong exchange traded funds (Cost $8,350,271)	7,768,261			0.44%

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

June 30, 2010

(in U.S. dollars)					Fair Value as a
					Percent of
			Fair		Total Partners’
Description			Value			Capital
Options Purchased
Hong Kong
Index				$                  805,501			0.04%
		Total Hong Kong options purchased (Cost $575,597)		805,501			0.04%
India
Index			582,741			0.03%
Currency			153,534			0.01%
Total India options purchased (Cost $4,197,202)			736,275			0.04%
United States Of America
Commodities			683,902			0.04%
Total United States Of America options purchased  (Cost $3,656,710)			683,902			0.04%
Total options purchased  (Cost $8,429,509)			2,225,678			0.12%
Investment Fund
India
Multi Strategy Arbitrage Fund			5,467,707			0.31%
Total India investment fund (Cost $5,000,000)			5,467,707			0.31%
Private Investments
India
Non-Listed Common Stocks
Construction			46,622,662			2.61%
Hotels			16,780,636			0.94%
Financial Services			15,207,614			0.85%
Capital Goods			9,696,818			0.55%
Commercial Services			9,047,786			0.51%
Software			3,020,926			0.17%
Auto Ancillaries			32,581			0.00%
	Total India non-listed common stocks (Cost $75,502,631)		100,409,023			5.63%
Listed Common Stocks (carried at exchange price)
Financial Services			34,231,334			1.92%
Automobiles			6,555,436			0.37%
Textile			1,570,075			0.09%
Total India listed common stocks (Cost $32,305,390)			42,356,845			2.38%
Convertible Redeemable Preferred Stocks
Food, Beverage			17,410,118			0.98%
	Total India convertible redeemable preferred stocks (Cost $8,055,535)		17,410,118			0.98%
Real Estate
Silver Holdings Mauritius Limited, Various Cities, India			64,869,055			3.64%
Khajrana Ganesh (Carton) Limited, Gurgaon, India			47,889,668			2.69%
NV Realty Private Limited, Pune, India			39,992,680			2.24%
NV Developers Private Limited, Thane, India			32,920,438			1.84%
Carwel Estates Limited, Chennai, India			30,561,602			1.71%
Other			51,926,038			2.91%
Total India real estate (Cost $197,442,732)			268,159,481			15.03%
(in U.S. dollars)

- 4 -

			Fair Value as a Percent of
		Fair	Total Partners’
Description		Value		Capital
Investment Funds
India
Real Estate		$              7,047,708		0.40%
Total India investment funds (Cost $6,017,750)		7,047,708		0.40%
Malaysia
Financial Services		2,524,912		0.14%
Total Malaysia investment funds (Cost $2,040,379)		2,524,912		0.14%
	Total private investments (Cost $321,364,417)	437,908,087		24.56%
	Total investments in securities (Cost $1,202,236,915)	$       1,587,031,885		89.00%
Investments in Securities Sold Short
Exchange Traded Funds
Hong Kong
Real Estate		$               (962,701)		(0.05)%
Total Hong Kong exchange traded funds (Proceeds $980,960)		(962,701)		(0.05)%
Options Written
United States of America
Commodities		(151,072)		(0.01)%
Total United States of America options written (Proceeds $1,797,000)		(151,072)		(0.01)%
India
Currency		(14,557)		(0.00)%
Total India options written (Proceeds $175,000)		(14,557)		(0.00)%
Total options written (Proceeds $1,972,000)		(165,629)		(0.01)%
Total investments in securities sold short (Proceeds $2,952,960)		$            (1,128,330)		(0.06)%

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

June 30, 2010

(in U.S. dollars)

								Fair Value	Fair Value as a Percent of Total Partners’ Capital
								Unrealized
Equity Access Products (a) (b)								Appreciation
India
Diversified								$       11,424,016	0.64%
Financial Services								3,813,671	0.21%
Total unrealized appreciation on India equity access products								$       15,237,687	0.85%
Forward Foreign Currency Contracts (0.02% of total partners’ capital) (b)
		Amount in Indian Rupees		Description				Maturities	Unrealized Depreciation
9,308,707,500				US Dollar sold in exchange for Indian Rupee			7/12/2010-8/31/2010		$        (319,611)
				Net unrealized depreciation on forward foreign currency contracts					$        (319,611)
	Futures Contracts (b)
			Number of Contracts		Description		Maturities		Unrealized Appreciation (Depreciation)
	15					Various	Various		$                      -

(a) Equity access products are collateralized as discussed in Note 2.  The Master Fund’s agreements with its counterparties are generally for multi-year durations.

(b) Derivative contracts may increase or decrease the Master Fund’s economic exposure to individual issuers, industry or market developments in addition to the amounts shown as unrealized appreciation/depreciation.

Industry Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital	Fair Value of Positions as a Percent of Total Partners’ Capital
Real Estate	19.01%
Financial Services	18.50%
Construction	7.85%
Diversified	6.60%
Software	6.38%
Country Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital
India	88.94%

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Operations

For the Period January 1, 2010 through June 30, 2010

(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $8,536)	$	8,282,691
Interest		34,439
Total investment income		8,317,130
Expenses
Management fees		14,352,963
Professional fees		1,299,930
Other		136,524
Total expenses		15,789,417
Net investment loss		(7,472,287	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		135,228,726
Investments in securities sold short		(481,723	)
Derivative transactions (including equity access products and futures contracts)		(20,952,213	)
Foreign currency transactions (including forward foreign currency contracts)		(13,697,443	)
Net realized gain		100,097,347
Net change in unrealized appreciation (depreciation) on
Investments in securities		(74,672,142	)
Investments in securities sold short		671,798
Derivative transactions (including equity access products and futures contracts)		(1,767,045	)
Foreign currency transactions (including forward foreign currency contracts)		2,896,783
Net change in unrealized depreciation		(72,870,606	)
Net realized and unrealized gain on investments		27,226,741
Net increase in partners’ capital resulting from operations	$	19,754,454

The accompanying notes are an integral part of these consolidated financial statements.

- 7 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Changes in Partners’ Capital

For the Period January 1, 2010 through June 30, 2010

(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, January 1, 2010	$	1,000	$	1,690,394,278		$	1,690,395,278
Capital contributions		-		80,125,000			80,125,000
Capital withdrawals		-		(4,963,227	)		(4,963,227	)
Deemed distributions		-		(2,025,913	)		(2,025,913	)
Pro-rata allocation of net increase in partners’
capital  resulting from operations		-		19,754,454			19,754,454
Partners' capital, June 30, 2010	$	1,000	$	1,783,284,592		$	1,783,285,592

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Cash Flows

For the Period January 1, 2010 through June 30, 2010

(in U.S. dollars)
Cash flows from operating activities
Net increase in partners' capital resulting from operations	$	19,754,454
Adjustments to reconcile net increase in partners' capital resulting from
operations to net cash provided operating activities:
Purchases of securities and equity access products		(950,001,782	)
Payments to cover securities sold short		(10,689,585	)
Proceeds from sales of securities and equity access products		1,095,394,628
Proceeds from securities sold short		11,438,366
Payments on closeouts of futures contracts		(13,392,223	)
Payments on forward foreign currency contracts		(13,697,449	)
Increase in operating assets:
Due from broker		(12,814,762	)
Dividends receivable		(3,924,864	)
Decrease in operating liabilities:
Due to broker		(1,673,294	)
Accounts payable and accrued expenses		(205,486	)
Net change in unrealized depreciation on investments in securities and derivative transactions		76,439,187
Net change in unrealized appreciation of investments in securities sold short		(671,798	)
Net change in unrealized appreciation on foreign currency (including forward
foreign currency contracts)		(4,060,416	)
Net realized gain on investments in securities and derivative transactions		(114,276,513	)
Net realized loss on investments in securities sold short		481,723
Net realized loss on foreign currency transactions (including forward currency contracts)		13,697,443
Net cash provided by operating activities		91,797,629
Cash flows from financing activities
Capital contributions, net of change in capital contribution receivable		82,810,000
Capital withdrawals, net of change in capital withdrawals payable		(184,889,128	)
Deemed distributions		(2,025,913	)
Net cash used by financing activities		(104,105,041	)
Net decrease in cash and cash equivalents		(12,307,412	)
Cash and cash equivalents (including foreign cash)
Beginning of year		144,522,114
End of year	$	132,214,702

The accompanying notes are an integral part of these consolidated financial statements.

- 9 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund is governed by its agreement of limited partnership dated July 7, 2006 (the "Partnership Agreement").

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, and its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At June 30, 2010, New Vernon Holdings LP (“Holdings”), New Vernon India Fund LP and New Vernon India Fund II LP (commenced operations on May 1, 2010) held interests in the partners’ capital of the Master Fund of 49.33%, 48.61 and 2.06%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 25.26% and 19.84%, respectively, at June 30, 2010.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP, New Vernon India Fund LP and New Vernon India Fund II LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s primary investment objective is to seek to earn a risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund.  At June 30, 2010, the Master Fund held $110,960,861 of listed common stocks where the Master Fund's holdings relative to the average daily trading volume of these common stocks or underlying common stocks was 20 days or greater.

At June 30, 2010, $42,356,845of investments consists of securities included in Designated Investments which are valued at the last available public sales price.

At June 30, 2010, there were three investments in investment funds which were fair valued at the net asset value reported by such investment funds.  Investments in investment funds include an open-ended fund company, with a fair value of $5,467,707, investing primarily in arbitrage opportunities in Indian markets and carries monthly liquidity with no unfunded capital commitments remaining.  Investments in investment funds also includes a private equity fund investing in real estate opportunities in India, with a fair value of $7,047,708, and a private equity fund investing in opportunities in Malaysia and other emerging markets, with a fair value of $2,524,912.  The investments in private equity funds cannot be redeemed with the funds.  Distributions from each fund will be received as the underlying investments of the funds are liquidated with estimated liquidation of the underlying investments ranging from six to eight years.  The unfunded capital commitments for these private equity funds amount to approximately $10,700,000 at June 30, 2010.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund also enters into index products.  Index products are fully-paid depository type instruments valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as an unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At June 30, 2010, there were 26 Designated Investments with an aggregate fair value of $437,908,087.  The largest individual Designated Investment at June 30, 2010 had a fair value of $64,869,055.  At June 30, 2010, $17,410,118 consists of a convertible security valued at its expected contracted sale price to an independent third-party buyer.  For the remaining Designated Investments of $378,141,124 (which excludes Designated Investments of $42,356,845fair valued at their last available public sale price), generally the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially fair value such investments at cost and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Valuation techniques for private equity investments include utilizing multiples derived from peer company comparable data or relevant market indices.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.  Valuation techniques include direct capitalization methods utilizing expected revenue and market-based capitalization rates as well as present value methods discounting expected future cash flows utilizing market-based discount rates.

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At June 30, 2010, total securities fair valued by the General Partner (in consultation with the Investment Manager) were $395,551,242 (which excludes Designated Investments of $42,356,845 valued at their last available public sale price) and represented 22.18% of total partners’ capital.  In addition, at June 30, 2010, $110,960,861 listed common stocks representing 6.22% of total partners’ capital, respectively, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks or underlying common stocks.

Authoritative guidance on fair value measurements and disclosures established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to level 1 measurements, which include unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.  The next priority is given to level 2 measurements, which include quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly.  The lowest priority is given to level 3 measurements, which includes prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

- 13 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at June 30, 2010:

	Level 1			Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	1,081,559,945		$	-		$	-	$	1,081,559,945
Index product		52,102,207								52,102,207
Exchange traded funds		7,768,261			-			-		7,768,261
Options purchased		641,141			1,584,537			-		2,225,678
Investment fund		-			-			5,467,707		5,467,707
Private investments:
Non-listed common stocks		-			-			100,409,023		100,409,023
Listed common stocks		42,356,845			-			-		42,356,845
Convertible redeemable preferred stock		-			-			17,410,118		17,410,118
Real estate		-			-			268,159,481		268,159,481
Investment funds		-			-			9,572,620		9,572,620
		1,184,428,399			1,584,537			401,018,949		1,587,031,885
Investments sold short:
Exchange traded fund		(962,701	)		-			-		(962,701	)
Options written		(27,757	)		(137,872	)		-		(165,629	)
		(990,458	)		(137,872	)		-		(1,128,330	)
Unrealized appreciation on equity access products		-			15,237,687			-		15,237,687
Net unrealized depreciation on forward currency contracts		-			(319,611	)		-		(319,611	)
Total	$	1,183,437,941		$	16,364,741		$	401,018,949	$	1,600,821,631
Cash equivalents - money market fund	$	23,183,434

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period January 1, 2010 through June, 30 2010:

	Investments in Securities
			Private Investments
	Investment Fund		Non-Listed Common Stocks			Convertible Redeemable Preferred Stock			Real Estate		Investment Funds			Warrants			Totals
Balance, beginning of period	$	5,318,356	$	103,953,387		$	16,792,331		$	258,926,875	$	9,191,108		$	-		$	394,182,057
Net purchases and dispositions				(4,549,345	)		(2,181,584	)		34,300		(1,655,559	)					(8,352,188	)
Net realized losses on investments in securities		-		(12,630,019	)		(2,459	)		-		331,393			(409,488	)		(12,710,573	)
Net change in unrealized appreciation (depreciation) on investments in securities		149,350		13,635,000			2,801,830			9,198,307		1,705,678			409,488			27,899,653
Transfers in and out		-		-			-			-		-			-			-
Balance, end of period	$	5,467,706	$	100,409,023		$	17,410,118		$	268,159,482	$	9,572,620		$	-		$	401,018,949
Net change in unrealized appreciation (depreciation) from investments still held at the end of the period	$	149,350	$	1,004,981		$	2,799,371		$	9,198,307	$	2,037,071		$	-		$	15,189,080
Losses from investments disposed of during the period		-		-			-			-		-			(409,488	)		(409,488	)
Total	$	149,350	$	1,004,981		$	2,799,371		$	9,198,307	$	2,037,071		$	(409,488	)	$	14,799,592

- 14 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.

The Master Fund transacts in a variety of derivative instruments including equity access products and forward foreign currency contracts for trading purposes with each instrument’s primary risk exposure being market and foreign exchange risk.

The following table sets forth the Master Fund’s fair value of derivative instruments at June 30, 2010 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Notional or Contractual Amount			Fair Value
Investments in securities:
Options purchased:
Index contracts	$	231,000,000		$	1,388,242
Commodities contracts		35,000,000			625,502
Currency contracts		50,000,000			153,534
Equity contracts		5,000,000			58,400
					2,225,678
Unrealized appreciation on equity access
products:
Equity contracts		19,000,000			15,237,687
Net unrealized depreciation on forward
foreign currency contracts:
Forward foreign currency contracts		(180,000,000	)		(319,611	)
Investments sold short:
Options written:
Commodity contracts		(45,000,000	)		(137,872	)
Currency contracts		(50,000,000	)		(14,557	)
Equity contracts		(5,000,000	)		(13,200	)
					(165,629	)
Net derivatives				$	16,978,125

The Master Fund’s activity in the above derivative instruments for the period January 1, 2010 through June 30, 2010 was below or approximately at the notional or contractual amounts shown.

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period January 1, 2010 through June 30, 2010 as presented in the consolidated statement of operations:

	Net Realized Gain (Loss)				Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:				Net change in unrealized appreciation (depreciation) on derivative transactions:
Options purchased:				Options purchased:
Equity contracts	$	(551,673	)	Equity contracts	$	183,890
Index contracts		(6,530,993	)	Index contracts		(2,587,056	)
Currency contracts		-		Currency contracts		(643,966	)
Commodity contracts		-		Commodity contracts		(1,171,138	)
Futures contracts:				Futures contracts:
Equity contracts		(6,626,284	)	Equity contracts		-
Equity access products		(1,417,889	)	Equity access products		1,797,685
Options written:				Options written:
Equity contracts		226,006		Equity contracts		26,800
Index contracts		(6,051,380	)	Index contracts		-
Currency contracts		-		Currency contracts		160,444
Commodity contracts		-		Commodity contracts		466,296
Net realized gain (loss) on foreign currency transactions:				Net change in unrealized (appreciation) depreciation on foreign currency transactions:
Forward foreign exchange contracts		(13,784,976	)	Forward foreign exchange contracts		4,060,416
	$	(34,737,189	)		$	2,293,371

Income and Expense Recognition

Interest income is recorded on an accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Other operating expenses are recorded on an accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

Income Taxes

No provision has been made in the accompanying financial statements for U.S. income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sale or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

The Master Fund conducts its investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2007.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

The Master Fund recognizes interest and penalties related to the underpayment of income taxes in operating expenses; however, during the period January 1, 2010 through June 30, 2010, no such interest and penalties were incurred.

The Master Fund follows authoritative guidance for uncertainty in income taxes which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period January 1, 2010 through June 30, 2010 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

Cash and Cash Equivalents

Cash and cash equivalents include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

- 17 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued daily at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by counterparties.  At June 30, 2010, the aggregate leverage amounted to approximately $19,000,000 and the collateral deposited with a counterparty amounted to approximately $8,500,000.  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Index Products

The Master Fund enters into index products which are fully-paid depository type instruments provided by counterparties.  The performance for index products is recorded as part of realized or unrealized gain or loss on investments.

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for equity access products, forward foreign currency contracts and securities sold short.  At June 30, 2010, broker margin deposits were approximately $51,600,000 and are reflected in the consolidated statement of assets, liabilities and partners’ capital in due from broker.

Netting of Derivatives

The Master Fund nets unrealized gains and losses by counterparty and product type on the consolidated statement of assets, liabilities and partners' capital.

Financial Instruments

All assets and liabilities classified as financial instruments are reported at fair value.

- 18 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the period, but based upon period-end partners’ capital values, are reflected as capital withdrawals payable at the end of the period.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At June 30, 2010, such affiliated Limited Partners had aggregate capital balances of approximately $99,100,000 with total capital contributed and committed amounting to $45,569,000.  In addition, at June 30, 2010, the General Partner had aggregate capital balances in the Feeder Funds of approximately $167,600,000.

4.Management Fees

The Mauritius Companies pay the Investment Manager an annual management fee calculated and paid quarterly in advance equal to the sum of 0.5% of their quarterly net asset values.  Management fees are charged on the cost basis or written down value of Designated Investments.  The management fees paid by the Mauritius Companies are reflected in these consolidated financial statements as management fee expense which was $14,352,963 for the period January 1, 2010 through June 30, 2010.

5.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings and Feeder Funds level.

6.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services (Cayman), Ltd. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, maintaining the Master Fund’s books and records and processing capital transactions.  The Master Fund pays the Administrator a fee for these services, approximately $150,000 for the period January 1, 2010 through June 30, 2010, which is included in professional fees in the consolidated statement of operations.

7.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

From inception through June 30, 2010, the Limited Partners had total capital commitments of $1,283,365,000, of which $1,282,240,000 has been contributed to the Feeder Funds, and total withdrawals of approximately $316,000,000.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective June 30, 2010.

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

- 19 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

For the period January 1, 2010 through June 30, 2010, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings and the Feeder Funds.  For the period January 1, 2010 through June 30, 2010, the Master Fund paid $2,025,913 of these management fees.  The payment of such fees on behalf of the Feeder Funds was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period January 1, 2010 through June 30, 2010, there were deemed distributions to Holdings and the Feeder Funds related to management fees the Master Fund paid on their behalf.

8.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at June 30, 2010.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At June 30, 2010, the fair value of Designated Investments was $395,551,242 (which excludes Designated Investments of $42,356,845 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

- 20 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC or CitiGroup, the “Prime Brokers”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and may be held by the Prime Brokers as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers may be unable to fulfill their obligations either to return the Master Fund’s securities and collateral or pay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk and/or counterparty credit risk.  These financial instruments include futures, forwards, equity access products, index products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’ capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at June 30, 2010.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

The Master Fund incurs counterparty credit risks associated with various products including cash and cash equivalents, margin deposits with brokers, equity access products and index products.  Primary counterparties include Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, CitiGroup and Deutsche Bank.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

- 21 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

At June 30, 2010, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At June 30, 2010, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP which had one limited partner.

9.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments.  Unfunded commitments at June 30, 2010 amounted to approximately $47,700,000.

10.Financial Highlights

The following financial highlights are for the period January 1, 2010 through June 30, 2010.  Such results are not predictive of future performance.

Total return (1) (2)1.16%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.43)%

Total expenses  0.91%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (0.87)% and 1.83%, respectively.  These ratios are calculated based on average limited partners’ capital.

- 22 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2010

11.Subsequent Events

The Master Fund has performed an evaluation of subsequent events through September xx, 2010, which is the date the financial statements were available to be issued.

For the period July 1, 2010 through September 30, 2010, the Master Fund received total capital contributions of $3,047,500.

- 23 -

EX-99.3 OTHER FIN ST

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Financial Statements

For the period January 1, 2009

through June 30, 2009

NVH I LP

(a Cayman Islands exempted limited partnership)

Index

June 30, 2009

Page(s)

Report of Independent Auditors 1

Consolidated Financial Statements

Consolidated Statement of Assets, Liabilities and Partners’ Capital 2

Consolidated Condensed Schedule of Investments 3–6

Consolidated Statement of Operations 7

Consolidated Statement of Changes in Partners’ Capital 8

Consolidated Statement of Cash Flows 9

Notes to Consolidated Financial Statements 10–21

Report of Independent Auditors

To the Partners of NVH I LP

(a Cayman Islands exempted limited partnership)

In our opinion, the accompanying consolidated statement of assets, liabilities and partners’ capital, including the consolidated condensed schedule of investments, and the related consolidated statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of NVH I LP and its subsidiaries at June 30, 2009, and the results of their operations, the changes in their partners’ capital and their cash flows for the period January 1, 2009 through June 30, 2009, in conformity with accounting principles generally accepted in the United States of America.  These financial statements are the responsibility of the General Partner.  Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America.  Those standards 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 the General Partner, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

September 25, 2009

- 1 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Assets, Liabilities and Partners' Capital

June 30, 2009

(in U.S. dollars)
Assets
Investments in securities, at fair value (cost $1,115,186,511)	$	1,297,747,414
Foreign cash (cost $132,669,799)		134,507,798
Cash and cash equivalents		86,951,605
Due from broker		21,972,939
Unrealized appreciation on equity access products, at fair value		6,193,871
Receivable for investments sold		5,946,924
Net unrealized appreciation on forward foreign currency contracts, at fair value		5,315,061
Dividends receivable		1,316,335
Total assets	$	1,559,951,947
Liabilities and Partners’ Capital
Liabilities
Investments in securities sold short, at fair value (proceeds $10,186,665)	$	6,748,939
Net unrealized depreciation on forward foreign currency contracts, at fair value		3,581,243
Payable for investments purchased		19,116,971
Accounts payable and accrued expenses		2,501,865
Capital withdrawals payable		1,536,449
Total liabilities		33,485,467
Commitments and Contingencies (Note 9)
Partners’ Capital
General partner		1,000
Limited partners		1,526,445,480
Total partners’ capital		1,526,466,480
Total liabilities and partners’ capital	$	1,559,951,947

The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)			Fair Value as a
			Percent of
	Fair		Total Partners’
Description	Value			Capital
Investments in Securities
Listed Common Stocks
India
Financial Services	$	170,492,338			11.17%
Materials		85,188,071			5.58%
Software		69,395,677			4.55%
Diversified		66,087,602			4.33%
Infrastructure		65,596,333			4.30%
Chemicals, Agro		60,838,006			3.99%
Automobiles		54,960,571			3.60%
Construction		35,193,234			2.31%
Real Estate		34,542,188			2.26%
Textile		22,177,771			1.45%
Energy		21,109,728			1.38%
Utilities		21,060,000			1.38%
Food, Beverage		19,099,937			1.25%
Pharmaceuticals		18,748,285			1.23%
Telecom		18,219,238			1.19%
Auto Ancillaries		17,217,619			1.13%
Light Engineering		16,031,661			1.05%
Sugar		15,265,238			1.00%
Logistics		12,546,311			0.82%
Capital Goods		11,841,318			0.78%
Hotels		1,021,121			0.07%
Media		173,533			0.01%
Consumer Goods		134,070			0.01%
Total India listed common stocks (Cost $697,132,124)		836,939,850			54.84%
Brazil
Energy		1,009,337			0.07%
Total Brazil listed common stocks (Cost $1,005,603)		1,009,337			0.07%
United Kingdom
Real Estate		1,382,472			0.09%
Total United Kingdom listed common stocks (Cost $3,828,800)		1,382,472			0.09%
Total listed common stocks (Cost $701,966,527)		839,331,659			55.00%
Exchange Traded Funds
United States of America
Emerging Markets Funds		11,974,396			0.78%
Gold Funds		4,864,453			0.32%
Total United Stated States of America exchange traded funds (Cost $15,586,326)		16,838,849			1.10%

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)				Fair Value as a
				Percent of
		Fair		Total Partners’
Description		Value			Capital
Options Purchased
United States of America
Currency		$               9,293,974			0.62%
Index		279,500			0.02%
Commodities		273,266			0.02%
	Total United States of America options purchased (Cost $7,029,384)	9,846,740			0.66%
India
Index			768,308		0.05%
Total India options purchased (Cost $584,807)			768,308		0.05%
Total options purchased (Cost $7,614,191)			10,615,048		0.71%
Commercial Papers
India
Auto Ancillaries			5,862,150		0.38%
Materials			1,864,760		0.12%
Total India commercial papers (Cost $4,941,250)			7,726,910		0.50%
Investment Fund
India
Multi-Strategy Arbitrage Fund			5,068,364		0.33%
Total India investment fund (Cost $5,000,000)			5,068,364		0.33%
Private Investments
India
Non-Listed Common Stocks
Construction			24,381,535		1.60%
Financial Services			16,825,875		1.10%
Commercial Services			13,960,438		0.91%
Capital Goods			11,467,374		0.75%
Hotels			10,141,423		0.66%
Auto Ancillaries			4,630,881		0.30%
Media			4,069,042		0.27%
Software			1,810,655		0.11%
	Total India non-listed common stocks (Cost $95,129,036)		87,287,223		5.70%
Listed Common Stocks (carried at exchange price)
Financial Services			28,382,003		1.86%
Logistics			14,223,114		0.93%
Software			5,728,211		0.38%
Retail			4,329,402		0.28%
Automobiles			3,392,130		0.22%
Textile			1,224,298		0.08%
Total India listed common stocks (Cost $76,806,590)			57,279,158		3.75%
Convertible Redeemable Preferred Stocks
Food, Beverage			12,678,420		0.83%
Textile			5,537,395		0.36%
	Total India convertible redeemable preferred stocks (Cost $13,515,151)		18,215,815		1.19%

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)			Fair Value as a
			Percent of
		Fair	Total Partners’
Description		Value		Capital
Warrants
Software		$                 273,389		0.02%
Textile		-		0.00%
Financial Services		-		0.00%
Total India warrants (Cost $869,072)		273,389		0.02%
Real Estate
Silver Holdings Mauritius Limited, Kolkata, India		56,519,764		3.70%
Khajrana Ganesh (Mauritius) Limited, Gurgaon, India		44,733,744		2.93%
Carwel Estates Limited, Chennai, India		35,204,466		2.31%
NV Realty Private Limited, Pune, India		31,435,992		2.06%
NV Developers Private Limited, Thane, India		31,111,724		2.04%
Other		48,423,132		3.17%
Total India real estate (Cost $184,376,072)		247,428,822		16.21%
Investment Funds
India
Real Estate		5,227,200		0.34%
Total India investment fund (Cost $6,017,750)		5,227,200		0.34%
Malaysia
Financial Services		2,454,977		0.16%
Total Malaysia investment fund (Cost $3,364,546)		2,454,977		0.16%
	Total India private investments (Cost $380,078,217)	418,166,584		27.37%
	Total investments in securities (Cost $1,115,186,511)	$       1,297,747,414		85.01%
Investments in Securities Sold Short
Exchanged Traded Funds
United States of America
Emerging Markets Fund		(6,143,005)		(0.41)%
	Total United States of America exchanged traded funds (Proceeds $4,473,440)	(6,143,005)		(0.41)%
Options Written
United States of America
Currency		(243,023)		(0.02)%
Commodities		(97,660)		(0.01)%
Emerging Markets Fund		(52,500)		0.00%
Total United States of America options written (Proceeds $5,496,367)		(393,183)		(0.03)%
Indian
Software		(187,200)		(0.01)%
Index		(25,551)		0.00%
	Total India options written (Proceeds $216,858)	(212,751)		(0.01)%
	Total investments in securities sold short (Proceeds $10,186,665)	$            (6,748,939)		(0.45)%

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Condensed Schedule of Investments

For the Period January 1, 2009 through June 30, 2009

								Fair Value as a
								Percent of
						Fair		Total Partners'
						Value		Capital
(in U.S. dollars)							Unrealized Appreciation
Equity Access Products (a) (b)
India
Diversified							$         4,469,901	0.29%
Financial Services							1,468,685	0.10%
Real Estate							110,545	0.01%
Textile							88,067	0.01%
Media							56,673	0.00%
Total India equity access products							6,193,871	0.41%
Unrealized appreciation on equity access products							$         6,193,871	0.41%
Forward Foreign Currency Contracts (0.11% of total partners’ capital) (b)
Amount in Indian Rupees			Description				Maturities	Unrealized Appreciation (Depreciation)
59,184,510,000			US Dollar bought in exchange for Indian Rupee			7/8/2009-11/20/2009		$      11,970,753
74,706,214,000			US Dollar sold in exchange for Indian Rupee			7/8/2009-11/20/2009		(10,236,935)
			Net unrealized appreciation on forward foreign currency contracts					$        1,733,818
	Futures Contracts (b)
		Number of Contracts		Description		Maturities		Unrealized Appreciation (Depreciation)
	23				Various	Various		$                      -

(a)  Equity access products are collateralized as discussed in Note 2.  The Master Fund’s agreements with its counterparties are generally for multi-year durations.

(b)  Derivative contracts may increase or decrease the Master Fund’s economic exposure to individual issuers, industry or market developments in addition to the amounts shown as unrealized appreciation/depreciation.

Industry Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital	Fair Value of Long Positions as a Percent of Total Partners’ Capital	Fair Value of Short Positions as a Percent of Total Partners’ Capital
Real Estate	18.90%	-
Financial Services	14.39%	-
Materials	5.70%	-
Software	5.06%	(0.01)%
Country Concentration of Investments in Securities and Equity Access Products greater than 5% of Total Partners’ Capital
India	83.52%	-

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Operations

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)
Investment income
Dividends (net of withholding taxes of $37,217)	$	2,398,243
Interest		99,954
Total investment income		2,498,197
Expenses
Management fees		9,638,596
Professional fees		1,841,765
Other		163,921
Total expenses		11,644,282
Net investment loss		(9,146,085	)
Realized and unrealized gain (loss) on investments
Net realized gain (loss) on
Investments in securities		(43,203,450	)
Investments in securities sold short		(1,679,797	)
Derivative transactions (including equity access products and futures contracts)		48,937,572
Foreign currency transactions (including forward foreign currency contracts)		(4,341,957	)
Net realized loss		(287,632	)
Net change in unrealized appreciation (depreciation) on
Investments in securities		371,741,896
Investments in securities sold short		2,696,888
Derivative transactions (including equity access products and futures contracts)		18,371,408
Foreign currency transactions (including forward foreign currency contracts)		3,005,262
Net change in unrealized appreciation		395,815,454
Net realized and unrealized gain on investments		395,527,822
Net increase in partners’ capital resulting from operations	$	386,381,737

The accompanying notes are an integral part of these consolidated financial statements.

- 7 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Changes in Partners’ Capital

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)
	General		Limited
	Partner		Partners			Total
Partners' capital, January 1, 2009	$	1,000	$	1,141,752,663		$	1,141,753,663
Capital contributions		-		1,125,000			1,125,000
Capital withdrawals		-		(1,420,280	)		(1,420,280	)
Deemed distributions		-		(1,373,640	)		(1,373,640	)
Allocation of net increase in partners’ capital
resulting from operations		-		386,381,737			386,381,737
Partners' capital, June 30, 2009	$	1,000	$	1,526,465,480		$	1,526,466,480

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Consolidated Statement of Cash Flows

For the Period January 1, 2009 through June 30, 2009

(in U.S. dollars)
Cash flows from operating activities
Net increase in partners' capital resulting from operations	$	386,381,737
Adjustments to reconcile net increase in partners' capital resulting from
operations to net cash used by operating activities:
Purchases of securities and equity access products		(1,074,182,904	)
Payments to cover securities sold short		(50,670,162	)
Proceeds from sales of securities and equity access products		936,516,964
Proceeds from securities sold short		58,298,528
Proceeds from closeouts of futures contracts		58,569,643
Payments on forward foreign currency contracts		(4,341,957	)
Increase in operating assets:
Due from broker		(13,355,546	)
Dividends receivable		(952,909	)
Increase in operating liabilities:
Accounts payable and accrued expenses		2,364,757
Net change in unrealized appreciation on investments in securities and derivative transactions		(390,113,304	)
Net change in unrealized appreciation of investments in securities sold short		(2,696,888	)
Net change in unrealized appreciation on forward foreign currency contracts		111,729
Net realized gain on investments in securities and derivative transactions		(5,734,122	)
Net realized gain on investments in securities sold short		1,679,797
Net realized gain on foreign currency transactions		4,341,957
Net cash used by operating activities		(93,782,680	)
Cash flows from financing activities
Capital contributions, net of change in capital contribution receivable		1,525,000
Capital withdrawals, net of change in capital withdrawals payable		(48,936,031	)
Deemed distributions		(1,373,640	)
Net cash used by financing activities		(48,784,671	)
Net decrease in cash and cash equivalents		(142,567,351	)
Cash and cash equivalents (including foreign cash)
Beginning of period		364,026,754
End of period	$	221,459,403

The accompanying notes are an integral part of these consolidated financial statements.

- 9 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

1.Organization

NVH I LP (the “Master Fund”) is a Cayman Islands exempted limited partnership which commenced operations on November 8, 2004.  The Master Fund is governed by its agreement of limited partnership dated January 7, 2006 (the "Partnership Agreement").

The investment manager of the Master Fund is New Vernon Advisers LP (the “Investment Manager”), a Delaware limited liability partnership.  The Investment Manager is responsible for the investment decisions of the Master Fund and also assists with certain administrative functions.  The General Partner of the Master Fund is New Vernon Management LLC (the “General Partner”), a Delaware limited liability company.  The General Partner manages the business and affairs of the Master Fund and is affiliated with the Investment Manager.

The consolidated financial statements of the Master Fund represent the financial position and results of operations of the Master Fund, and its wholly-owned Mauritian subsidiaries: New Vernon India Limited, New Vernon Private Equity Limited and New Vernon Mauritius (collectively, the “Mauritius Companies”).

The Master Fund operates under a “master fund/feeder fund” structure where its limited partners invest substantially all of their assets in the Master Fund.  At June 30, 2009, New Vernon Holdings LP (“Holdings”) and New Vernon India Fund LP held interests in the partners’ capital of the Master Fund of 52.26% and 47.74%, respectively.  Holdings has two limited partners: New Vernon India (Cayman) Fund LP and New Vernon India (Cayman) Fund II LP, which own indirect interests in the partners’ capital of the Master Fund of 25.30% and 23.43%, respectively, at June 30, 2009.

New Vernon India (Cayman) Fund LP, New Vernon India (Cayman) Fund II LP and New Vernon India Fund LP are collectively called the “Feeder Funds”.  The limited partners of the Feeder Funds are referred to as the “Limited Partners”.

Nature of Investments

The Master Fund’s primary investment objective is to seek to earn a superior risk-adjusted return primarily through investments in a selection of Indian companies, Indian real estate projects and other assets.  Investments are primarily equity or equity related and may be structured either through direct or synthetic ownership.  “Indian Companies” are companies that: (i) are organized under the laws of India; (ii) have securities which are traded principally on any Indian stock exchange or in the Indian over-the-counter market; or (iii) are located outside of India and have the potential to benefit from access to Indian operations, markets, technologies, workforce or other capabilities.  “Indian Real Estate Projects” include the development and management of commercial, industrial and/or residential real estate and hospitality projects located within India.  The Master Fund may also invest up to 15% of total capital commitments of the Limited Partners in securities of issuers organized, having their principal place of business, or principal trading market in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand, Japan, Sri Lanka, Pakistan, People’s Republic of China, Bangladesh, Vietnam or the Philippines as well as emerging market countries throughout Asia and elsewhere.

The Master Fund may also invest in other special investment opportunities.  Additionally, the Master Fund is authorized to use various investment strategies (across instruments, including but not restricted to, currency forwards, futures, options and other financial instruments) to seek to manage various market risks.  The Master Fund may also, from time to time, sell securities short without limitation.

- 10 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

 The General Partner may designate up to 40% of total capital commitments of the Limited Partners as "Designated Investments" (termed “Private investments” in the consolidated condensed schedule of investments) because they will be, in the view of the General Partner, long term, illiquid or without a readily ascertainable market value.

2.Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Master Fund in the preparation of its consolidated financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements.  In particular, estimates are made relating to the fair value of securities (including Private Investments) and derivatives.  Actual results could differ from those estimates and such differences could be material to the Master Fund's financial statements.

Consolidation

The Master Fund consolidates its wholly-owned subsidiaries.  Intercompany accounts and transactions have been eliminated.

Investment Transactions

Investment and contractual transactions are recorded on a trade/contract date basis.  Realized gains and losses on security transactions are determined on the specific identification cost basis.

Investment Valuation

In general, when investments are listed on an established securities exchange or traded in the over-the-counter market (“OTC”), the Master Fund will value them at their last available public sale price.  Investments in investment funds will be valued at the fair value reported by such investment fund.  At June 30, 2009, the Master Fund held $28,235,268 of listed common stocks where the Master Fund's holdings relative to the average daily trading volume of these common stocks or underlying common stocks was 20 days or greater.

At June 30, 2009, $57,279,158 of investments consists of securities included in Designated Investments which are valued at the last available public sales price.

The Master Fund enters into equity access products.  Equity access products are OTC contracts that are valued at contractual terms based upon the last available public sale price of the underlying listed common stock.

The Master Fund may buy or write put and call options through listed exchanges and the OTC market.  The buyer of an option has the right to purchase (in the case of a call option) or sell (in the case of a put option) a specified quantity of a specified security or currency at a specified price prior to or on a specified expiration date.  The writer of an option is exposed to the risk of loss if the market price of the underlying securities or currencies decreases (in the case of a put option) or increases (in the case of a call option).  The writer of an option can never profit more than the premium paid by the buyer but can lose an unlimited amount in the case of a written call option and can lose the difference between the strike price and zero in the case of a written put option.

- 11 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

Premiums received from writing options are recorded as liabilities.  If the value of a written option exceeds the premiums received, the excess is treated as an unrealized loss.  Conversely, if a premium exceeds the value, the excess, to the extent of premiums received, is treated as a unrealized gain.  When a written option expires on its stipulated expiration date or when the closing transaction is entered into, the related liability is extinguished and the Master Fund realizes a gain (or loss if the cost of the closing transaction exceeds the premium received when the option was written).  When an option is purchased, an amount equal to the premium paid is recorded as an investment and subsequently adjusted to the current value.  If the value of a purchased option exceeds the premium paid, the excess is treated as an unrealized gain.  Conversely, if the premium exceeds the value, the excess, to the extent of premiums paid, is treated as an unrealized loss.  When a purchased option expires on its stipulated expiration date or when a closing transaction is entered into, the premium paid on the purchase of the option is treated by the Master Fund as a realized loss.

Options listed on a national securities exchange are fair valued at their last available public sale price.  Investments in OTC option contracts are fair valued using one or more indicative quotations from financial institutions.

Forward foreign currency contracts are fair valued using forward rates obtained from recognized market information providers.  Futures contracts are traded on exchanges and are fair valued at their last available sale price.

Designated Investments are stated at fair value as determined in good faith by the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager,  receipt of third party prepared appraisals).  At June 30, 2009, there were 35 Designated Investments with an aggregate fair value of $418,166,584.  The largest individual Designated Investment at June 30, 2009 had a fair value of $56,519,764.  At June 30, 2009, $18,215,815 consist of convertible securities valued using a discounted redemption value plus the fair value of the embedded option within such securities, if applicable.  For the remaining Designated Investments of $342,671,611 (which excludes Designated Investments of $57,279,158 fair valued at their last available public sale price), generally the General Partner (in consultation with the Investment Manager and where deemed appropriate by the Investment Manager, upon receipt of third party prepared appraisals) will initially fair value such investments at cost and will adjust the fair values to reflect meaningful third-party transactions in the private equity market, a significant change in the financial condition or operating performance of the investment, or other pertinent developments that otherwise warrant a change in the fair valuation of the investment.  Factors considered in fair valuing individual investments include, without limitation, available market prices, type of security, purchase price, purchases of the same or similar securities by other investors, marketability, restrictions on disposition, yield-to-maturity, current financial position and operating results and other pertinent information.  Real estate investments are fair valued considering various market, income and cost approaches.

Notwithstanding the foregoing, if in the reasonable judgment of the General Partner (in consultation with the Investment Manager), in its sole discretion, the listed or quoted price for an investment held by the Master Fund does not represent the fair value of such security or where price quotations are not readily available or where prices received are not deemed appropriate, such investment shall be valued at fair value as determined by the General Partner (in consultation with the Investment Manager).

Although the General Partner (in consultation with the Investment Manager and receipt of third party prepared appraisals) uses its best judgment in estimating the fair value of investments, there are inherent limitations in any estimation technique.  The fair value estimates presented herein are not necessarily the amount that the Master Fund could realize in a current transaction.  Future confirming events will

- 12 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

also affect the estimates of fair value and the effect of such events on the estimates of fair value, including the ultimate liquidation of investments, could be material to the consolidated financial statements.  At June 30, 2009, total securities fair valued by the General Partner (in consultation with the Investment Manager) were $360,887,426 (which excludes Designated Investments of $57,279,158 valued at their last available public sale price) and represented 23.64% of total partners’ capital.  In addition, at June 30, 2009, $28,235,268 listed common stocks representing 1.85% of total partners’ capital, respectively, consisted of holdings of 20 days or greater relative to the average daily trading volume of such common stocks or underlying common stocks.

Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements, established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to level 1 measurements, which include unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.  The next priority is given to level 2 measurements, which include quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly.  The lowest priority is given to level 3 measurements, which includes prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

The following table sets forth the Master Fund’s investments by level within the fair value hierarchy at June 30, 2009:

	Level 1			Level 2			Level 3		Total
Investments in securities:
Listed common stocks	$	839,331,659		$	-		$	-	$	839,331,659
Exchange traded funds		16,838,849			-			-		16,838,849
Options purchased		1,047,810			9,567,238			-		10,615,048
Bonds		7,726,910			-			-		7,726,910
Investment fund		-			-			5,068,364		5,068,364
Private investments:
Non-listed common stocks		-			-			87,287,223		87,287,223
Listed common stocks		57,279,158			-			-		57,279,158
Convertible redeemable preferred stock		-			-			18,215,815		18,215,815
Warrants		-			273,389			-		273,389
Real estate		-			-			247,428,822		247,428,822
Investment funds		-			-			7,682,177		7,682,177
		922,224,386			9,840,627			365,682,401		1,297,747,414
Investments sold short:
Exchange trade funds		(6,143,005	)		-			-		(6,143,005	)
Options written		(265,251	)		(340,683	)		-		(605,934	)
		(6,408,256	)		(340,683	)		-		(6,748,939	)
Unrealized appreciation on equity access products		-			6,193,871			-		6,193,871
Net unrealized appreciation on forward currency contracts		-			5,315,061			-		5,315,061
Net unrealized depreciation on forward currency contracts		-			(3,581,243	)		-		(3,581,243	)
Total	$	915,816,130		$	17,427,633		$	365,682,401	$	1,298,926,164
Cash equivalents- money market fund	$	32,044,883

- 13 -

The following table sets forth a summary of changes in the fair value of the Master Fund’s level 3 investments for the period January 1, 2009 through June 30, 2009:

	Investments in Securities
						Private Investments
	Investment Fund		Commercial Paper			Non-Listed Common Stocks		Convertible Redeemable Preferred Stock		Real Estate			Investment Funds			Totals
Balance, beginning of period	$	-	$	36,784,052		$	77,409,755	$	14,683,235	$	228,647,980		$	5,838,866		$	363,363,888
Net purchases and dispositions		5,000,000		(39,590,610	)		-		-		13,287,030			2,244,546			(19,059,034	)
Net realized gain (loss) on investments in securities		-		1,056,333			-		-		(6,170	)		-			1,050,163
Net change in unrealized appreciation (depreciation) on investments in securities		68,364		1,750,225			9,877,468		3,532,580		5,499,982			(401,235	)		20,327,384
Transfers in and out		-		-			-		-		-			-			-
Balance, end of period	$	5,068,364	$	-		$	87,287,223	$	18,215,815	$	247,428,822		$	7,682,177		$	365,682,401
Net change in unrealized appreciation (depreciation) from investments still held at the end of the period	$	68,364	$	-		$	9,877,468	$	3,532,580	$	5,493,812		$	(401,235	)	$	18,570,989
Gains from investments disposed of during the period		-		2,806,558			-		-		-			-			2,806,558
	$	68,364	$	2,806,558		$	9,877,468	$	3,532,580	$	5,493,812		$	(401,235	)	$	21,377,547

All net realized and unrealized gains (losses) in the table above are reflected in the accompanying consolidated statement of operations.  Net unrealized appreciation (depreciation) relates to those financial instruments held by the Master Fund at June 30, 2009.

The Master Fund adopted Financial Accounting Standards Board’s (“FASB”) SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities which requires enhanced disclosures about an entities’ derivative and hedging activities.  For purposes of SFAS No. 161, the Master Fund’s derivative instruments are designated as non-hedging instruments.

The following table sets forth the Master Fund’s fair value of derivative instruments at June 30, 2009 as presented in the consolidated statement of assets, liabilities and partners’ capital:

	Fair Value
Investments in securities:
Options purchased:
Foreign exchange contracts	$	9,293,974
Equity contracts		1,047,808
Commodity contracts		273,266
		10,615,048
Unrealized appreciation on equity access products:
Equity contracts		6,193,871
Net unrealized appreciation on forward foreign currency contracts:
Foreign exchange contracts		5,315,061
Net unrealized depreciation on forward foreign currency contracts:
Foreign exchange contracts		(3,581,243	)
Investments sold short:
Options written:
Foreign exchange contracts		(243,023	)
Equity contracts		(265,251	)
Commodity contracts		(97,660	)
		(605,934	)
Net derivatives	$	17,936,803

- 14 -

The following table sets forth the Master Fund’s realized and unrealized gain (loss) on derivative instruments for the period January 1, 2009 through June 30, 2009 as presented in the consolidated statement of operations:

	Net Realized Gain (Loss)				Net Change in Unrealized Appreciation (Depreciation)
Net realized gain (loss) on derivative transactions:				Net change in unrealized appreciation (depreciation) on derivative transactions:
Options purchased:				Options purchased:
Equity contracts	$	(10,056,178	)	Equity contracts	$	3,824,728
Foreign exchange contracts		-		Foreign exchange contracts		5,035,600
Commodity contracts		-		Commodity contracts		(109,140	)
Futures contracts:				Futures contracts:
Equity contracts		56,843,065		Equity contracts		-
Equity access products		464,953		Equity access products		5,222,983
Options written:				Options written:
Equity contracts		1,685,732		Equity contracts		314,105
Foreign exchange contracts		-		Foreign exchange contracts		4,015,352
Commodity contracts		-		Commodity contracts		67,780
Net realized gain (loss) on foreign currency transactions:				Net change in unrealized (appreciation) depreciation on foreign currency transactions:
Foreign exchange contracts		(122,959	)	Foreign exchange contracts		(111,729	)
	$	48,814,613			$	18,259,679

Income and Expense Recognition

Interest income is recorded on the accrual basis.  Dividend income is recognized on the ex-dividend date net of any withholding tax.  Other operating expenses are recorded on the accrual basis as incurred.  Expenses incurred in connection with the purchase of Designated Investments are included as a component of each of the investment's cost.

Income Taxes

No provision has been made in the accompanying financial statements for U.S. income taxes.  The Master Fund is not subject to such taxes; individual partners may be taxed on their proportionate share of the Master Fund’s income based on their individual circumstances.

The Master Fund is a Cayman Islands exempted limited partnership. Under the current laws of the Cayman Islands, there is no income, estate, transfer, sale or other taxes payable by the Master Fund.  The Master Fund trades stocks and securities for its own account and, as such, is generally not subject to

- 15 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

U.S. tax on such earnings (other than certain withholding taxes indicated below).  The Investment Manager intends to conduct the business of the Master Fund to the maximum extent practicable so that the Master Fund’s activities do not constitute a U.S. trade or business.  Dividends as well as certain interest and other income received by the Master Fund from sources within the United States may be subject to, and reflected net of, United States withholding tax at the rate of 30%.  Interest, dividend and other income realized by the Master Fund from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to withholding and other taxes levied by the jurisdiction in which the income is sourced.

The Master Fund conducts its investment activities in India through the Mauritius Companies which are tax residents of Mauritius and expect to obtain benefits under the double taxation treaty between Mauritius and India.  To obtain benefits under the double taxation treaty, the Mauritius Companies must meet certain tests and conditions, including the establishment of Mauritius tax residence and related requirements.  The Mauritius Companies have obtained certificates from the Mauritian authorities that they are residents of Mauritius.  Under the tax treaty a tax resident of Mauritius that has no permanent establishment in India will not be subject to tax on gains or profits in India on the sale of securities or tax on dividends paid by Indian companies.  Management believes that the Mauritius Companies qualify to obtain the benefits of the tax treaty and, accordingly, no provision for Indian income taxes has been made in the consolidated financial statements of the Master Fund.

The Master Fund files U.S. Federal income tax returns as well as returns in certain foreign jurisdictions.  With few exceptions, the Master Fund is no longer subject to income tax examinations by tax authorities for years before 2005.  There are currently no examinations being conducted of the Master Fund by the Internal Revenue Service or any other taxing authority.

The Master Fund recognizes interest and penalties related to the underpayment of income taxes in operating expenses; however, during the period January 1, 2009 through June 30, 2009, no such interest and penalties were incurred.

The Master Fund follows FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB No. 109, which requires the General Partner to determine whether a tax position of the Master Fund is more likely than not to be sustained upon examination by the applicabletaxing authority, including resolution of any related appeals or litigation by the applicable taxing authority, based on the technical merits of the position.  The tax benefits to be recognized are measured as the largest amount of benefit that is greater fifty percent likely of being realized upon ultimate settlement which could result in the Master Fund recording a tax liability that would reduce partners’ capital.  The Master Fund did not have any unrecognized tax benefits resulting from tax positions related to either the period January 1, 2009 through June 30, 2009 or prior periods.  The General Partner does not expect any change in unrecognized tax benefits within the next year.

Cash and Cash Equivalents

Cash and cash equivalents include cash held on deposit and short-term investments with an original maturity of three months or less.  Cash equivalents are recorded at cost plus accrued interest which

- 16 -

NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

approximates fair value.  Additional information on cash receipts and payments is presented in the consolidated statement of cash flows.  The Master Fund maintains its cash balances with one or more financial institutions.  The Master Fund is subject to credit risk should any of these financial institutions be unable to fulfill their obligations.

Foreign Currency Translation

The books and records of the Master Fund are maintained in U.S. dollars.  The fair value of investments and other assets and liabilities are translated at the prevailing exchange rates at the end of the period.  Purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions.  Net realized gain or loss on foreign currency transactions arises from the close out of forward foreign currency contracts and from currency gains or losses realized on non investment related assets and liabilities.  Net change in unrealized appreciation or depreciation on foreign currency arises from changes in the values of assets and liabilities, other than investments, resulting from changes in exchange rates and forward foreign currency contracts.  The Master Fund does not isolate the portion of realized and unrealized gain or loss on investments arising as a result of changes in foreign exchange rates on investments from the fluctuations arising from changes in the fair value of investments.

Foreign Currency Contracts

The Master Fund may enter into forward and spot foreign currency contracts.  A forward foreign currency contract is an agreement to buy or sell currencies of different countries on a specified future date at a specified rate.

The fair value of the contract will fluctuate with changes in currency exchange rates.  Contracts are fair valued daily at the current forward rates obtained from recognized market information providers, and the change in the fair value is recorded by the Master Fund as unrealized appreciation or depreciation of foreign currency contracts.  Realized gains or losses equal to the difference between the fair value of the contract at the time it was opened and the fair value at the time it was closed are recorded upon delivery or receipt of the currency or, if a foreign currency contract is offset by entering into another foreign currency contract with the same broker, upon settlement of the net gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

Equity Access Products

The Master Fund enters into equity access products which are leveraged equity positions.  The leverage inherent in these instruments is provided by the counterparty (Morgan Stanley & Co. Incorporated at June 30, 2009).  Interest earned on equity access product collateral is recorded as interest income.  Expenses on the financing underlying the equity access products are recorded as part of realized and unrealized gain or loss on investments.  A realized gain or loss is recorded upon termination of an equity access product.  Unrealized gains and losses are reported as assets or liabilities.

Futures Contracts

The Master Fund may enter into security index, financial and commodity futures contracts.  Upon entering into a futures contract, the Master Fund is required to deposit an amount equal to a certain percentage of the contract value.  On a daily basis and on the expiration date, payments are made or received by the Master Fund reflecting the aggregate change in the fair value of the contract.  Upon the closing of a contract, the Master Fund will recognize a realized gain or loss.  Unrealized gains and losses are reported as assets or liabilities.

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NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

Margin Deposits with Brokers

Margin deposits held with the Master Fund’s brokers earn interest at a negotiated rate and are pledged as collateral for equity access products and securities sold short.  At June 30, 2009, equity access products had aggregate leverage of approximately $15,700,000 and securities sold short had an aggregate fair value of approximately $6,700,000.  At June 30, 2009, broker margin deposits were $21,972,939 and are reflected in the consolidated statement of assets, liabilities and partners’ capital as Due from Broker.

Netting of Derivatives

The Master Fund nets realized and unrealized gains and losses by counterparty and product type in accordance with the provisions of FASB Interpretation No. 39.

Financial Instruments

All assets and liabilities classified as financial instruments under SFAS 107: Disclosures about Fair Value of Financial Instruments are reported at fair value.

Capital Contributions and Withdrawals

Capital contributions are recognized when received.  Withdrawals are recognized as liabilities when amounts requested in the withdrawal notice become fixed, which generally occurs on the last day of a fiscal period.  As a result, withdrawals paid after the end of the year, but based upon year-end partners’ capital values, are reflected as capital withdrawals payable at the end of the year.  Withdrawal notices received for which the dollar is not fixed remain in capital until the partners’ capital value used to determine the withdrawals amounts are determined.

3.Related Party Transactions

Certain Limited Partners of the Feeder Funds are affiliated with the Investment Manager or the General Partner.  At June 30, 2009, total capital contributed and committed to by such affiliated Limited Partners was $43,569,000.

4.Management Fees

The Mauritius Companies pay the Investment Manager an annual management fee calculated and paid quarterly equal to the sum of 0.5% of their quarterly net asset values.  Management fees are charged on the cost basis or written down value of Designated Investments.  The management fees paid by the Mauritius Companies are reflected in these consolidated financial statements as management fee expense which was $9,863,596 for the period January 1, 2009 through June 30, 2009.

5.Incentive Allocation

No General Partner incentive allocations are made at the Master Fund level.  Such allocations are made at the Holdings and Feeder Funds level.

6.Administrator

The Master Fund entered into an administration agreement with Citi Hedge Fund Services (Cayman), Ltd. (the “Administrator”).  Subject to the General Partner’s supervision, the Administrator handles among other things, maintaining the Master Fund’s books and records and processing capital transactions.  The Master Fund pays the Administrator a fee for these services, approximately $150,000

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NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

for the period January 1, 2009 through June 30, 2009, which is included in professional fees in the consolidated statement of operations.

7.Partners’ Capital

Capital Contributions and Withdrawals

The Master Fund accepts contributions and withdrawals from the Feeder Funds quarterly or at such other times as the General Partner decides.

At June 30, 2009, the Limited Partners had total capital commitments of $1,166,015,000, all of which has been contributed to the Feeder Funds.

Capital withdrawals payable in the consolidated statement of assets, liabilities and partners’ capital represent capital withdrawals effective June 30, 2009.

Allocation of Net Profits and Net Losses

The net profits and net losses of the Master Fund are allocated to Holdings and the Feeder Funds in proportion to relative capital interests on a quarterly basis and at such other times when capital transactions occur.  The General Partner does not receive an allocation of net profit or net loss at the Master Fund level.

During the period ended June 30, 2009, all expenses were recorded by the Master Fund and allocated to Holdings and the Feeder Funds based on their proportionate share of the Master Fund, except for direct management fees charged to the Feeder Funds.

The Master Fund pays management fees to the Investment Manager on behalf of Holdings and the Feeder Funds.  For the period January 1, 2009 through June 30, 2009, the Master Fund paid $1,373,640 of these management fees.  The payment of such fees on behalf of the Feeder Funds was effected by deemed distributions of an equivalent amount.

Distributions

The Master Fund does not generally intend to pay distributions.  During the period January 1, 2009 through June 30, 2009, there were deemed distributions to Holdings and the Feeder Funds related to management fees the Master Fund paid on their behalf.

8.Risks

The following summary of certain risk factors is not intended to be a comprehensive summary of all risks inherent in investing in the Master Fund.

An investment in the Master Fund is highly speculative and involves a high degree of risk due to the nature of the Master Fund’s investments and the strategies employed.  There can be no assurance that the investment objectives of the Master Fund will be achieved.

The Master Fund has elements of risk not typically associated with investments in the United States as it is concentrated in India at June 30, 2009.  Such additional risks include, but are not limited to, political or economic conditions in India or the possible imposition of adverse governmental laws or currency exchange restrictions which could cause the securities and their market to be less liquid and prices more volatile than those comparable to the United States.  Indian or Mauritian tax law and the tax treaty

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NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

between India and Mauritius are subject to change which may have an adverse impact on the Master Fund.  Because certain markets and instruments in which the Master Fund invests are volatile and may be illiquid or the Master Fund’s holdings of listed common stocks relative to the average daily trading volume of these common stocks is significant, the prices which may be realized upon disposition of certain listed common stocks and related equity access products may differ from the Master Fund’s carrying value.  Designated Investments by their nature can be long-term, illiquid, restricted as to their resale or without a readily ascertainable market value.  Such investments can take a significant period of time to reach a state of maturity at which liquidation can be considered.  At June 30, 2009, the fair value of Designated Investments was $360,887,426 (which excludes Designated Investments of $57,279,158 valued at their last available public sale price).  As discussed in Note 2, such fair value may not be ultimately realizable and the difference to the carrying values reported in the consolidated condensed schedule of investments could be material to the consolidated financial statements.  Also discussed in Note 2, equity access products have inherent leverage which magnifies the effect of any underlying security price change on the Master Fund's capital.

Real estate investments are subject to various risk factors.  Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located.  Real estate investment performance is also subject to the success that a particular property manager has in managing the property.

The Master Fund clears substantially all of its securities purchases and sales and maintains its foreign currency positions and forward contracts through Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, or CitiGroup, the “Prime Brokers”, pursuant to clearance agreements.  Substantially all foreign currency, listed and unlisted securities, equity access products, options and forward contracts are maintained with the Prime Brokers and may be held by the Prime Brokers as collateral.  The Master Fund is subject to credit risk to the extent that the Prime Brokers may be unable to fulfill their obligations either to return the Master Fund’s securities or repay amounts owed.  Collateral requirements for open derivative positions (including equity access products and forward contracts) can change rapidly based on market conditions and can result in additional collateral calls or sales of collateral.

In the normal course of its business, the Master Fund trades various financial instruments and enters into certain investment activities with off-balance sheet risk.  These financial instruments include futures, forwards, equity access products, options and short sales.  Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments may affect the fair value of the contracts and such effects may be in excess of the amounts recognized in the consolidated statement of assets, liabilities and partners’

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NVH I LP

(a Cayman Islands exempted limited partnership)

Notes to Consolidated Financial Statements

June 30, 2009

capital.  Short sales and written call options have unlimited risk.  The contract or notional amounts of these derivative instruments reflects the Master Fund’s extent of involvement in the particular class of financial instruments and does not represent amounts subject to risk of loss.  The Master Fund is exposed to credit risk associated with counterparty nonperformance to the extent of unrealized gains inherent in such contracts at the date of default.

The Master Fund may invest in securities or maintain cash denominated in currencies other than the U.S. dollar.  The Master Fund is exposed to risk that the exchange rate of the U.S. dollar relative to other currencies may change in a manner, which has an adverse affect on the reported value of the Master Fund’s assets and liabilities denominated in currencies other that the U.S. dollar.  The Master Fund has significant exposure to the Indian Rupee at June 30, 2009.

Legal, tax and regulatory changes could occur during the term of the Master Fund that may adversely affect the Master Fund.  The regulatory environment for hedge funds is evolving, and changes in the regulation of hedge funds may adversely affect the fair value of investments held by the Master Fund and the ability of the Master Fund to obtain the leverage it might otherwise obtain or to pursue its trading strategies.  In addition, securities and futures markets are subject to comprehensive statutes, regulations and margin requirements.  Regulators and self-regulatory organizations and exchanges are authorized to take extraordinary actions in the event of market emergencies.  The regulation of derivative transactions and short selling and funds that engage in such transactions is an evolving area of law and is subject to modification by government and judicial actions.  The effect of any future regulatory change on the Master Fund could be substantial and adverse.

Credit risks associated with cash and cash equivalents is discussed in Note 2.

Market risk is influenced by the nature of the items included in a particular category of financial instruments and by the relationship among various external factors.

At June 30, 2009, the Master Fund was concentrated in India and the industries listed in the consolidated condensed schedule of investments.

As discussed in Note 1, the Investment Manager provides investment management services to the Master Fund.  The Master Fund could be materially affected by the actions and liquidity of the Investment Manager.

As discussed in Note 1, the Master Fund’s investors are Holdings and the Feeder Funds.  The Master Fund could be materially affected by the actions of Holdings and the Feeder Funds or their underlying investors.  At June 30, 2009, the Feeder Funds had limited partners with individually significant capital balances including New Vernon India (Cayman) Fund LP which had one limited partner.

9.Commitments and Contingencies

In the normal course of business, the Master Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.  The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred.  The General Partner expects the risk of loss to be remote.

The Master Fund makes certain commitments to invest in private investments.  Unfunded commitments at June 30, 2009 amounted to approximately $52,800,000.

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10.Financial Highlights

The following financial highlights are for the period January 1, 2009 through June 30, 2009.  Such results are not predictive of future performance.

Total Return (1) (2)33.88%

Ratios to weighted average limited partners’ capital (2)

Net investment loss(0.77)%

Total expenses0.99%

(1) Total return is calculated for the limited partners taken as a whole.  Total return is calculated based on the change in partners’ capital (adjusted for the effects of any capital contributions or withdrawals) for the current period only and, therefore does not reflect the history-to-date of the return of the Master Fund.  An individual limited partner’s return may vary from these returns based on such factors as the timing of capital transactions and Holding and Feeder Fund level income and expenses and incentive allocations.

(2) Not annualized.  The ratios of net investment loss and total expenses to average limited partners’ capital on an annualized basis are (1.55)% and 1.97%, respectively.  These ratios are calculated based on average limited partners’ capital.

11.Subsequent Events

For the period July 1, 2009 through September 25, 2009, which is the date the financial statements were issued, the Master Fund received total capital contributions of $13,600,000.

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