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|                                                                                                                                       |   |   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
| 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 |   |

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| 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 |   |
|                                                                                                                                                                                  |   |   |        |   |

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|                                                   |   | 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 |   |

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| 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      |   |

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|   | 1.Organization |
|--------|----------------|

|   | 2.Summary of Significant Accounting Policies |
|--------|----------------------------------------------|

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|   | 3.Related Party Transactions |
|--------|------------------------------|

|   | Management Fee |
|--------|----------------|

|   | Incentive Allocation |
|--------|----------------------|

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|   | 4.Partners’ Capital Accounts |
|--------|------------------------------------|

|   | 5.Administrator |
|--------|-----------------|

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|   | 6.Risks |
|--------|---------|

|   | 7.Commitments and Contingencies |
|--------|---------------------------------|

|   | 8.Financial Highlights |
|--------|------------------------|

| 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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 9.Subsequent Events |
|--------|---------------------|

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