NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTH ENDED JANUARY 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
Bhirud Funds, Inc. (the "Fund") is a diversified open-end management investment company currently consisting of
The Apex Mid Cap Growth Fund portfolio (the "Portfolio"). The Fund was incorporated in Maryland on May
27, 1992. Prior to November 4, 1992 (commencement of operations), the Fund had no operations other than
the sale of 10,000 shares of stock on August 4, 1992 at a cost of $100,000 to Thomas James MidCap Partners
representing the initial capital. The following is a summary of significant accounting policies followed by the Fund:
Readily marketable portfolio securities listed on the New York Stock Exchange are valued at the last sale price
reflected at the close of the regular trading session of the New York Stock Exchange on the business day as of
which such value is being determined. If there has been no sale on such day, the securities are valued at the mean
of the closing bid and asked prices on such day. If no bid or asked prices are quoted on such day, then the
security is valued by such method as the Board of Directors shall determine in good faith to reflect its fair value.
Readily marketable securities not listed on the New York Stock Exchange but listed on other national securities
exchanges or admitted to trading on the National Association of Securities Dealers Automated Quotations, Inc.
("NASDAQ") National List are valued in like manner. Portfolio securities traded on more than one national
securities exchange are valued at the last price on the business day as of which such value is being determined as
reflected on the tape at the close of the exchange representing the principal market for such securities.
Readily marketable securities traded in the over-the-counter market, including listed securities whose primary
market is believed by the Advisor to be over-the-counter but excluding securities admitted to trading on the
NASDAQ National List