LIC MUTUAL FUND
  
 ABRIDGED AUDITED REVENUE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2002
                                                           
       DHANARAKSHA 89       DHANASAHAYOG           DHANAVIDYA        DHANAVIKAS (I)             DHAN 88 (I)      DHANASAMRIDDHI     DHAN TAX SAVER 95     DHAN TAX SAVER 96     DHAN TAX SAVER 97     DHANAVARSHA (12)     DHANAVARSHA (13)     LICMF - BOND FUND  LICMF GOVT SEC FUND  LIC MF CHILDRENS FUND  LICMF LIQUID FUND
         (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)
     2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  26/09/2001 TO 31/03/2002  11/3/2002 TO 31/03/2002
  1  INCOME
  
  1.1  DIVIDENDS          35.52          62.29            2.91          12.28            3.43            5.22          79.76          73.66            7.23            7.83            3.29          11.71            3.66            1.76            8.24            5.28            1.44            2.07                -              6.21            1.64            9.76                 -                  -                  -                   -                                             -                                           -  
  1.2  INTEREST        838.67     1,095.01          99.26          91.45          15.95          17.51          45.32          88.52          11.81          16.62          12.83          15.61            2.76          12.60            6.01            9.39            3.08            9.40     1,334.04     1,867.55     1,674.51     1,877.41     10,821.22     3,452.67        887.25         936.54                                     33.91                                     6.05
  1.3  PROFIT ON SALE/REDEMPTION OF INVESTMENT (NET)
 (OTHER THAN INTER-SCHEME TRANSFER/SALE)                -                  -                  -                  -                  -                  -                  -                  -                  -            35.04                -                  -                  -                  -                  -            34.29                -            82.31                -            22.90                -                  -         2,163.05                -          798.21           41.25                                           -                                           -  
  1.4  PROFIT ON INTER SCHEME
 TRANSFER/SALE OF INVESTMENTS (NET)          69.65                -              8.27                -                  -                  -                  -                  -                  -                  -                  -                  -              0.64                -                  -                  -              0.59                -                  -                  -          181.82                -                   -            85.34            4.42                 -                                             -                                           -  
 WRITE BACK OF PROVISION FOR DEPRECIATION OF INVESTMENT        952.89        575.68        620.53        279.17        101.47          73.00     2,349.93        493.11        343.91                -          369.83                -          166.49          26.34          90.98                -          135.19                -          149.23                -                  -                  -                   -                  -            40.11           14.80                                           -                                           -  
 ADJUSTMENT FOR MARKED TO MARKET OF INVESTMENTS         (66.71)       (952.89)       (264.83)       (620.53)                -         (101.47)       (394.15)    (2,349.93)         (10.67)       (343.91)         (26.24)       (369.83)           (5.69)       (166.49)           (9.85)         (90.98)           (4.59)       (135.19)            8.01       (149.23)        205.25       (428.71)       4,346.49        336.17        330.85          (40.11)                                       4.85                                         -  
  1.5  OTHER INCOME            2.46            2.46            0.46            0.07            0.01                -              0.12            0.10            0.01                -              0.01                -                  -                  -                  -                  -                  -                  -              0.28                -              0.37            0.11              0.31            0.75            0.09                 -                                             -                                           -  
 WRITE BACK OF PROVISION FOR OUTSTANDING AND
 ACCRUED INCOME CONSIDERED DOUBTFUL                -            53.99            0.07                -                  -                  -                  -              0.53            0.02                -                  -              0.08                -                  -                  -                  -                  -                  -                  -            82.17                -                  -                   -                  -                  -                   -                                             -                                           -  
  1.6  EXCESS/(SHORT) PROVISION WRITTEN BACK            0.11         (27.80)            0.07            0.60            0.04            0.06            2.00            1.01            0.40            0.06                -              0.01            0.10            0.20            0.06                -                  -                  -                  -              1.67                -                  -                   -              0.02                -                   -                                             -                                           -  
  
 TOTAL       1,832.59        808.74        466.74       (236.96)        120.90           (5.68)     2,082.98    (1,693.00)        352.71       (284.36)        359.72       (342.42)        167.96       (125.59)          95.44         (42.02)        135.71         (41.41)     1,491.56     1,831.27     2,063.59     1,458.57     17,331.07     3,874.95     2,060.93         952.48                                     38.76                                     6.05
  
  2  EXPENSES & LOSSES
  
  2.1  MANAGEMENT & ADVISORY,TRUSTEESHIP FEES
    ADMINISTRATIVE & OTHER OPERATING  EXPENSES        182.62        218.43          18.61          49.51            0.99          12.20          58.81          90.32          21.29          23.81            7.93          20.67            6.34            8.68            6.54            8.10            2.05          18.57        200.16        284.22        240.24        311.20       1,707.26        599.65          87.96         105.36                                     12.62                                     1.86
  2.3  PROVISION FOR OUTSTANDING AND ACCRUED
 INCOME CONSIDERED DOUBTFUL (NET)          24.38                -                  -              1.07                -              3.02                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -              2.42                -              0.42          39.40                 -                  -                  -                   -                                             -                                           -  
 
  2.4  PROVISION FOR DOUBTFUL DEPOSITS AND
 CURRENT ASSETS (NET)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 2.5  PROVISION FOR INVESTMENTS CONSIDERED DOUBTFUL 
 PAST REDEMPTION DATE        156.05        386.34          10.43          89.64                -            25.00                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -            49.50            0.51                -                  -                   -                  -                  -                   -                                             -                                           -  
    2.60  ADJUSTMENT FOR RESTATEMENT OF INVESTMENTS
 (SUNDRY DEBTORS) AT REDEMPTION DATE AT REDEMPTION VALUE                -           (15.91)                -             (5.87)                -             (0.38)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -              0.81                -                  -                   -                  -                  -                   -                                             -                                           -  
  2.5  LOSS ON SALE/REDEMPTION OF INVESTMENTS (NET)
 (OTHER THAN INTER-SCHEME TRANSFER/SALE)        849.53          19.43        365.11          92.50          81.71          28.89     1,699.96        353.74        250.37                -          191.48        219.62        137.24          72.85          57.39                -          127.96                -            47.80                -          549.04          88.80                 -            67.37                -                   -                                             -                                           -  
  2.6  LOSS ON INTER SCHEME TRANSFER/SALE
 OF INVESTMENTS (NET)                -          360.82                -                  -            20.21          11.54          86.25        329.36            3.42                -          156.77            5.72                -                  -              3.52                -                  -            46.25        387.91          32.33                -                  -                   -                  -                  -                   -                                             -                                           -  
UNREALISED APPRECIATION ON INVESTMENTS                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -              8.01                -          555.20        349.95       4,911.68        565.19        330.85                 -                                         4.85                                         -  
UNREALISED APPRECIATION ON INVESTMENTS PREVIOUS YEAR                 -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -         (349.95)       (778.66)        (565.19)       (229.02)                -                   -                                             -                                           -  
  3  APPROPRIATIONS:
  3.1  INCOME DISTRIBUTION DURING THE YEAR                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -          474.94        915.88        590.87        756.64       4,017.21     1,177.03        716.41         523.16                                           -                                       0.28
 3.1  PROPOSED INCOME DISTRIBUTION                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 
 3.2  TAX ON DIVIDEND                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -            83.37        136.60          66.70        160.55          409.74        237.75          73.03         100.04                                           -                                       0.03
 FINAL REWARD        100.54        194.93                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 
 SCHOLARSHIP BENEFITS                -                  -                  -                  -            12.37          84.61                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  3.2  TRANSFER TO RESERVE FOR FINAL REWARD          32.00         (83.92)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  3.3  TRANSFER TO ACCUMULATION OPTION RESERVE                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -            27.95        615.47        294.10        911.86                 -                  -                  -                   -                                             -                                           -  
 
 3.3  TRANSFER TO / (FROM) GROWTH OPTION RESERVE                -                  -           (21.97)         (22.09)           (7.55)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -       21,011.96     7,294.97        225.23         561.95                                           -                                       1.32
 
  3.4  TRANSFER TO / (FROM) DIVIDEND EQUALISATION RESERVE                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -         1,597.39        138.55        350.54          (70.86)                                           -                                           -  
 
  3.6  TRANSFER TO / (FROM) UNIT PREMIUM RESERVE       (489.77)                -                  -                  -                  -           (12.11)            0.33        360.59                -                  -                  -              1.46                -                  -                  -                  -              0.83            0.23                -         (130.27)                -         (171.81)   (21,396.76)    (7,165.93)    (1,003.90)        (536.27)                                     (7.47)                                   (0.95)
 
  3.7  TRANSFER TO / (FROM) YEARLY INCOME OPTION RESERVE                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -         (122.19)       (183.36)         (39.52)         (94.67)                 -                  -                  -                   -                                             -                                           -  
 
 3.4  TRANSFER TO/(FROM) GENERAL RESERVE:          82.56         (88.73)         (37.79)         (20.15)           (0.13)         (55.55)       (571.57)       (100.31)         (26.16)         (33.43)       (150.12)       (140.55)         (14.41)         (11.27)            8.06          19.25           (3.61)          31.28        369.97        108.36        610.19        217.87       8,774.87     1,791.27     1,342.47         280.07                                     (0.10)                                     3.74
 
  3.8  TRANSFER TO/(FROM) SPECIAL RESERVE (LICMF)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 3.5  TRANSFER TO/(FROM) SURPUS ACCOUNT                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 3.6  SURPLUS/(DEFICIT) CARRIED TO REDEMPTION LIABILITY ACCOUNT                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  3.9  SURPLUS/(DEFICIT) CARRIED TO BALANCE SHEET        894.68       (182.65)        132.35       (421.57)          13.30       (102.90)        809.20    (2,726.70)        103.79       (274.74)        153.66       (449.34)          38.79       (195.85)          19.93         (69.37)            8.48       (137.74)         (38.28)          50.72       (453.70)       (332.56)     (3,137.09)       (601.88)         (61.66)          (10.97)                                     28.86                                   (0.23)
  
 TOTAL       1,832.59        808.74        466.74       (236.96)        120.90           (5.68)     2,082.98    (1,693.00)        352.71       (284.36)        359.72       (342.42)        167.96       (125.59)          95.44         (42.02)        135.71         (41.41)     1,491.56     1,831.27     2,063.59     1,458.57     17,331.07     3,874.95     2,060.93         952.48                                     38.76                                     6.05
  
               -                  -                  -                  -                  -                     -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
 LIC MUTUAL FUND 
  
 ABRIDGED AUDITED BALANCE SHEETS AS AT 31ST MARCH 2002
                                                           
       DHANARAKSHA 89       DHANASAHAYOG           DHANAVIDYA        DHANAVIKAS (I)             DHAN 88 (I)      DHANASAMRIDDHI     DHAN TAX SAVER 95     DHAN TAX SAVER 96     DHAN TAX SAVER 97     DHANAVARSHA (12)     DHANAVARSHA (13)     LICMF - BOND FUND  LICMF GOVT SEC FUND  LIC MF CHILDRENS FUND  LICMF LIQUID FUND
         (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)          (Rs. IN LAKHS)
     2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  2001-2002  2000-2001  26/09/2001 TO 31/03/2002  11/3/2002 TO 31/03/2002
 LIABILITIES
  
  1  UNIT CAPITAL:     6,591.17     7,665.66     1,327.45     1,515.70        364.68        365.22     4,818.78     6,205.96     1,183.44     1,234.95     1,966.74     2,154.49        380.39        407.46        221.69        247.71        167.63        177.07     7,982.68   11,860.34   10,192.54   12,892.41   100,183.63   47,340.65     7,903.17      7,562.27                                   846.77                                 723.60
  2  RESERVES AND SURPLUS:         
  2.1  UNIT PREMIUM RESERVE                -          477.41                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  2.2  OTHER RESERVES        814.95        150.00        113.83        135.80                -              7.55                -                  -                  -                  -                  -                  -                  -                  -            98.04          78.10                -                  -       1,952.90     2,085.42     2,540.53     2,285.95     31,446.36     8,837.01     1,281.42         705.65                                     28.87                                     1.32
 3  UNREALISED APPRECIATION ON INVESTMENTS                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -              8.01                -          555.20        349.95       4,911.68        565.19        330.85                 -                                         4.85                                         -  
 4  REDEMPTION LIABILITY ACCOUNT                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  3  LOANS AND BOROWINGS                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  4  CURRENT LIABILITIES & PROVISIONS   
  4.3  PROPOSED INCOME DISTRIBUTION                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  4.4  OTHER CURRENT LIABILITIES & PROVISIONS        674.53     1,632.08          59.88          39.64          67.74            2.51          86.00          84.41          75.95          50.81            8.82          43.30            1.97            2.69            1.72          15.48            8.93            8.11          39.35        114.79          41.37          45.91          340.29        185.11     1,065.40         188.70                                       4.07                                     1.81
  
 TOTAL       8,080.65     9,925.15     1,501.16     1,691.14        432.42        375.28     4,904.78     6,290.37     1,259.39     1,285.76     1,975.56     2,197.79        382.36        410.15        321.45        341.29        176.56        185.18     9,982.94   14,060.55   13,329.64   15,574.22   136,881.96   56,927.96   10,580.84      8,456.62                                   884.56                                 726.73
 ASSETS    
  
  1  INVESTMENTS
  1.1  EQUITY SHARES     1,542.24     1,461.01        426.16        270.78                -          197.43     2,872.90     3,052.96        695.73        486.59        356.36        422.89        156.25        125.05        280.97        196.79        108.07        106.75        218.91        428.88          36.26        584.01                 -                  -                  -                   -                                             -                                           -  
  1.2  DEBENTURES & BONDS     3,814.01     4,879.99        440.53        588.02                -            58.38                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -       8,041.55     9,601.30     7,889.70     9,598.47     50,269.16                -                  -                   -                                     441.38                                 650.00
  1.3  TERM LOANS (SHORT TERM LOANS)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  1.4  GOVERNMENT SECURITIES                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -       26,095.88                -       9,870.43      6,825.92                                           -                                           -  
  1.5  OTHER INVESTMENTS     2,086.16     2,818.29        200.00                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -       1,171.90     2,003.42     3,926.73     3,582.79     44,941.33   52,217.59                -                   -                                     307.69                                         -  
  2  DEPOSITS
  2.1  WITH SCHEDULED BANK        266.22          70.64          39.66          97.88        250.31          22.44        110.18        496.47          13.53        122.05          45.56          68.61          17.58          35.88          25.01        126.22          23.10          18.56          73.44        896.45          61.26        455.01       1,504.15     1,360.98                -        1,397.45                                     18.11                                   73.12
  3  OTHER CURRENT ASSETS:
  3.1  CASH & BANK BALANCES            2.29            6.30            0.12            8.21            0.06            1.99            2.70          41.77            3.56          19.56            5.56            5.74            0.04            3.00            0.06          10.56            0.53            1.54            0.28          33.28            5.07          38.41       3,897.90        376.28        301.93         116.95                                     73.37                                     1.45
  3.2  OTHER CURRENT ASSETS     1,106.49        983.53        182.39        371.25        135.19          34.88        112.22          83.19            0.70            0.67          22.04            0.85            4.41            0.22          10.30            0.59            0.18            5.17        525.43     1,030.78        779.14     1,062.98       6,470.71     2,407.37        335.84         105.33                                     32.37                                     1.93
 LESS - PROVISION FOR DOUBTFUL INCOME/DEPOSITS        736.76        556.33        137.29        126.94          30.25          30.25          57.67          57.67            0.10            0.12                -                  -                  -                  -                  -                  -                  -                  -            84.44          32.53          39.82          39.40                 -                  -                  -                   -                                             -                                           -  
         369.73        427.20          45.10        244.31        104.94            4.63          54.55          25.52            0.60            0.55          22.04            0.85            4.41            0.22          10.30            0.59            0.18            5.17        440.99        998.25        739.32     1,023.58       6,470.71     2,407.37        335.84         105.33                                     32.37                                     1.93
  4  FIXED ASSETS (AT DEPRICIATED VALUE)                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                   -                                             -                                           -  
  5  DEFFERED RENENUE EXPENDITURE:
 (TO THE EXTENT NOT WRITTEN OFF)                -                  -                  -                  -                  -                  -                  -                  -              6.68          13.93                -                  -              7.29          10.42            5.11            7.13                -                  -            35.87          98.97          67.10        141.45                 -                  -                  -                   -                                       11.64                                         -  
  6  DEFICIT TRANSFERRED FROM REVENUE ACCOUNT                -          261.72        349.59        481.94          77.11          90.41     1,864.45     2,673.65        539.29        643.08     1,546.04     1,699.70        196.79        235.58                -                  -            44.68          53.16                -                  -          604.20        150.50       3,702.83        565.74          72.64           10.97                                           -                                       0.23
  
 TOTAL       8,080.65     9,925.15     1,501.16     1,691.14        432.42        375.28     4,904.78     6,290.37     1,259.39     1,285.76     1,975.56     2,197.79        382.36        410.15        321.45        341.29        176.56        185.18     9,982.94   14,060.55   13,329.64   15,574.22   136,881.96   56,927.96   10,580.84      8,456.62                                   884.56                                 726.73