ESCORTS MUTUAL FUND - UNCLAIMED DUNDEE MUTUAL FUND

SCHEDULE FORMING PART OF THE ACCOUNTS

SCHEDULE 5

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS

1.         SIGNIFICANT ACCOUNTING POLICIES

1.1       METHOD OF ACCOUNTING

(1)               The Fund maintains its books of account on accrual basis.

2.         NOTES TO THE ACCOUNT

As per the MOU between Escorts Assets Management Ltd and Dundee Investment Management & Research Pvt. Ltd on 09.06.2005 and subsequent approval from SEBI, the entire unclaimed amount of all the Schemes of Dundee Mutual Fund of Rs. 17,25,607/- has been transferred to Escorts Mutual Fund. Accordingly the books of accounts have been maintained from 09.06.2005.

for Escorts Mutual Fund                                     for Escorts Asset Management Limited

(Trustee: Escorts Investments Trust Limited)

(RAJAN NANDA)                                                                              

CHAIRMAN                                                                     DIRECTOR

DIRECTOR                                                                       DIRECTOR

Per our report of even date

For S.N. DHAWAN & Co.

Chartered Accountants

(SURESH SETH)

 PARTNER

MEMBER SHIP NO – 10577

 PLACE: NEW DELHI

 DATE: