Magnum Taxgain

7/31/2019 Magnum Taxgain

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MAGNUM TAXGAIN SCHEME

Abridged Annual Report 2011-12 1

REPORT OF THE BOARD OF DIRECTORS OF SBI MUTUAL FUND TRUSTEE COMPANY

PRIVATE LIMITED FOR THE YEAR 2011-12The Directors of SBI Mutual Fund Trustee Company Private Limited are pleased to present the Audited Accounts in respect of the schemes of SBI Mutual

Fund for the year ended 31st March, 2012. The scheme-wise financial statements for the year 2011-12, are enclosed with the report of the auditors. Thesignificant accounting policies through which the financial statements of the schemes are drawn and the explanatory notes to accounts of each of theschemes are also attached. The financial statements have been prepared as per the SEBI (Mutual Fund) Regulations 1996, in the manner required andexhibit true and fair view of the operating results.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

Magnum Tax GainScheme 1993 has performed very well and has outperformed the benchmark index (BSE100). Most of our sectoral calls, in terms of

being underweight financials and overweight pharmaceuticals, cement, etc., have worked well for us. Even our bottoms up stock picks have performedexceedingly well contributing meaningfully to the performance of the Fund.

Name of Scheme Latest Latest Latest Latest Since6 Months 1 Year 3 Years 5 Years Inception

Magnum Taxgain Scheme - 1993 - Growth 7.46 (2.86) 23.57 N.A. 5.38

Benchmark : BSE100 6.40 (9.23) 22.85 N.A. 5.42

Dividend 7.45 (2.89) 23.56 6.56 16.46Benchmark : BSE100 6.40 (9.23) 22.85 6.82 12.23

N.A. = Not Applicable

FUTURE OUTLOOK:

EQUITY OUTLOOK:

As the Murphys law says, anything that can go wrong will go wrong. India was a classic example of this. Sticky inflation, depreciating currency andrising interest rates coupled with policy inaction and execution failure led to a poor performance by Indian capital markets during FY 2012. Corporateprofitability took a major hit further impacting asset creation. Political situation remained worrisome which put the whole policy making in jeopardy.Headwinds from overseas markets, mostly fuelled by debt crisis in Europe, were also the key triggers for the poor performance of stock markets in India.

Corporate profitability is likely to remain depressed in the near future given the higher input costs, wages, interest rates, steep depreciation in currencyand higher competitive intensity. With a hazy outlook and depressed profitability, corporate India seems reluctant to commit new capital locally. Mostof the capex has been stalled, delayed or suspended. The situation will certainly put to test Indian corporates wherewithal to navigate this challengingbusiness environment.

The economy cannot afford continuance of sticky inflation, rising interest rates and a weaker currency. While demand is an addressable issue with marginalstretch from the policy side it is the governance that needs to step-up its response to the glaring supply gap on most of the input parameters. One can expecta tactical readjustment by polity to get the structural India story back on track sooner. There exists a possibility of an outlier blue-swan of synchronizedoccurrence of favorable events like softened interest rates, global commodities and reversal of the currency slide (they all have high interlinks).

In Todays pain lies tomorrows gain. We expect this period to offer a good opportunity to investors to participate in the long term India story. In thisscenario we prefer to focus on bottom up stock picking with core beliefs in terms of quality (business, management, and cash flows), prudence (on cashutilization) and agility (in terms of timing and allocation). We prefer to look for businesses with strong franchise value, large consumption compulsioncanvass opportunity and penetration potential. We also remain alert to opportunities that provide tactical returns on Asset plays at attractive valuationsand rate sensitives given impending policy response. We recommend investors to maintain the discipline of asset allocation and use the downturn inequity market as an opportunity to gradually build exposure.

FIXED INCOME OUTLOOK & STRATEGY:

Long term funds

We have been maintaining a conservative duration strategy in the long term funds and MIPs on account of:

Supply issues which are likely to dominate as the borrowing is front loaded with 65% of borrowing in the first half of FY13. Gross supply in Q1is ` 1,88,000 crs and redemptions are ` 60,574 crs.

Weaker rupee and international crude oil price movements & its pass through would continue to be the main variable affecting the domestic

inflation/ policy rates trajectory.

Over the coming year, we expect policy rates to be reduced, but in a gradual/ sequenced manner enabling yields to move lower.

We would continue with our trading strategy with moderately invested positions in government bonds and would look to build in duration withmore clarity on the rate cycle.

MIPs and Balanced Fund would focus to have a core portfolio of corporate credit (1-3 year segment) and CDs which have been available atattractive spreads and provide high accrual and roll down.

Short term funds/ Money market funds

Money market schemes have repriced the portfolios aggressively during the month with investments predominantly in CDs. We anticipate thatrates could trend down in the beginning of the new fiscal year due to net infusion of liquidity via government spending and bond maturities.

The mark to market exposure in Ultra Short would be around 10% considering the attractive levels and on expectations of easing liquidity leadingto mark to market gains.


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The new fair valuation norms eventually could result in average maturities moving down in the liquid category and also repositioning of funds onmaturity profiles.

Short term fund with positioning largely in the 9mth-1 yr CD and short term bonds in the AAA segment could benefit substantially on reductionin liquidity premium.

Money market funds would focus on generating consistent returns and would strive to contain volatility. Particular emphasis will be laid on security /portfolio liquidity and credit quality.

Operations of the schemes

SBI Mutual Fund manages 28 open ended and 11 close ended schemes, out of which 17 are equity schemes (2 close ended),1 balance scheme, 2 liquidschemes,1 gilt scheme,16 debt schemes (9 close ended) and 1 Gold ETF scheme & 1 Gold Fund scheme.

SBI Mutual Fund continues to hold certain securities which were sold by it but these have not been got transferred by the buyers in their names. These

securities do not belong to SBIMF, but are held on behalf of the unknown buyers and not as Owners/Investors. Such securities are transferred to thebuyers against claims after establishing the genuineness of the claim. The market value of such securities as on 31st March 2012 is ` 14.89 crore.

2. BRIEF BACKGROUND OF SPONSORS, TRUST, TRUSTEE CO. AND AMC CO.

a. State Bank of India

SBI Mutual Fund is sponsored by State Bank of India, the largest public sector bank in India. The Sponsor is the Settler of the Mutual Fund Trust.

The Sponsor has entrusted a sum of ` 5 Lakhs to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

The State Bank of India SBI having its Corporate Office at State Bank Bhavan, Madame Cama Road, Mumbai - 400 021, is the largest public sectorbank in India with 14,097 branches in India and 173 offices in 34 countries worldwide. SBI also has 5 Banking Subsidiaries in addition to other non-

banking subsidiaries in India. State Bank of India holds 63% stake in SBI Funds Management Private Limited.

Financial Performance of the SBI (Sponsor) {past three years}:

Particulars 2012 2011 2010

Net Worth (` Cr.)(Paid up Capital and Reserves & Surplus) 83,951 64,986 65,949

Total Income (` Cr.) 1,20,873 97,219 85,962

Net Profit (` Cr.) 11,707 8,265 9,166

b. SBI Mutual Fund

SBI Mutual Fund ( SBIMF) was set up as a Trust by the settlers, State Bank of India on June 29, 1987 with SBI Mutual Fund Trustee Company Private

Limited (The Trustee Company) as a Trustee in accordance with the provisions of the Indian Trust Act,1882 and is duly registered under theRegistration Act, 1908. The Trustee has entered into an Investment Management Agreement dated May 14, 1993 and also a supplemental thereto

on April 28, 2003, which was replaced by Restated and Amended Investment Management Agreement December 29, 2004 with SBI FundsManagement Private Ltd. (the AMC) to function as the investment Manager for all the Schemes of SBI MF. SBI MF was registered with SEBI onDecember 23, 1993 under Registration Code MF-009/93/3.

c. SBI Mutual Fund Trustee Company Private Limited

The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Trustee has beendischarging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure thatthe Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions andguidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

d. SBI Funds Management Private Limited

SBI Funds Management Private Limited (SBIFMPL) is a private limited company incorporated under the Companies Act, 1956 on February 17,1992, having its Registered Office at 191, Maker Tower E, 19th Floor, Cuffe Parade, Mumbai 400 005. SBIFMPL has been appointed as the Asset

Management Company of the SBI Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 14, 1993 and also asupplemental thereto on April 28, 2003 and the same have been replaced by Restated and Amended Investment Management Agreement enteredinto between SBIMFTCPL and SBIFMPL on December 29, 2004.

As per the audited accounts on 31st March, 2012, the authorized and paid-up capital of the AMC was `50 crores and the Networth of the AMC was

` 304.39 Crores. SBI FMPL is a joint venture between State Bank of India (SBI) and Amundi India Holding (AMUNDI), a leading European assetmanagement company. A shareholder agreement in this regard has been entered on April 13, 2011 amongst SBI & AMUNDI. Accordingly, SBIcurrently holds 63% stake in SBI FMPL and the 37% stake is held by AMUNDI through Amundi India Holding. AMUNDI shall provide strategicsupport to the Company. SBI & AMUNDI shall jointly develop the Company as an asset management company of international repute by adoptingglobal best practices and maintaining international standards.

In terms of Investment Management Agreement, SBIFMPL has assumed the day to day investment management of the fund and in that capacitymakes investment decisions and manages the SBI Mutual Fund Schemes in accordance with the scheme objectives, Trust Deed, provisions of

Investment Management Agreement and SEBI Regulations & Guidelines.

In addition to the investment management activity, SBI Funds Management Private Limited has also been granted a certificate of registration as aPortfolio Manager with Registration Code INP000000852. SEBI has renewed the certificate for a period from January 16, 2010 to January 15, 2013.

Apart from this SBI Funds Management Private Limited has received an In-principle approval from SEBI for SBI Resurgent India OpportunitiesFund (Offshore Fund) vide letter no. IMD/RK/53940/2005 dated November 16, 2005.

The AMC certifies that there would be no conflict of interest between the Asset Management activity and these other activities.


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3. INVESTMENT OBJECTIVES, BASIS AND POLICY OF INVESTMENT OF THE SCHEMES

MAGNUM TAXGAIN SCHEME 1993Launch Date : February 24, 1993

Growth Option- May 7, 2007

Objective :

An open-ended equity linked savings scheme, the investment objective of the scheme is a) Deliver the benefit of investment in a portfolio of equity

shares, while offering deduction on such investments made in the scheme under section 80C of the Income Tax Act, 1961. b) Distribute incomeperiodically depending on distributable surplus.

The portfolio strategy is to make long term investments in stocks and to invest in companies in all the market cap segments through both top down and

bottom up investment philosophies.

As on 31.03.12

Unit NAV:

Dividend Option : ` 32.05

Growth Option : ` 58.35

Corpus : ` 1207.53 crores

Total assets under management:` 4698.31 crores

4. SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTING POLICIES ARE IN ACCORDANCE WITH SECURITIES & EXCHANGEBOARD OF INDIA (MUTUAL FUND) REGULATIONS 1996.

5. UNCLAIMED DIVIDENDS & REDEMPTIONS

Summary of No. of Investors & Corresponding amount scheme wise:

Unclaimed Dividends Unclaimed Redemptions

Scheme No. of Investors Amount (`````) No. of Investors Amount (`````)

MAGNUM TAX GAIN FUND 50847 126,820,187.38 410 3,583,408.77

6. REDRESSAL OF COMPLAINTS RECEIVED AGAINST MUTUAL FUNDS (MFS) DURING 2011 -2012

SBI Funds Management Private Limited : Total Number of Folios : 52,05,329 as on 31.3.2012

Complaint Type of (a) No. of (b) No. of Action on (a) and (b)Code Complaint # complaints complaints

pending received Resolved Non Pendingat the during the Actionable*

beginning yearof the year

within 30 - 60 60 - 180 Beyond 0-3 3-6 6-9 9-1230 days days days 180 days months months months months

I A Non receipt of Dividend of Units 1 87 88

I B Interest on delayed payment of dividend 3 3

IC Non receipt of Redemption Proceeds 89 87 2

ID Interest on delayed payment of Redemption 9 9

I I A Non receipt of Statement of Account / 80 79 1Unit Certificate

I I B Discrepancy in Statement of Account 1 1

I I C Non receipt of Annual Report /

Abridged SummaryI II A Wrong switch between Schemes 1 1

I II B Unauthorized switch between schemes

I II C Deviation from Scheme attributes

I II D Wrong or excess charges / load

III E Non updation of changes viz. address, 2 3976 3978PAN, bank details, nominations, etc

IV Others 268 262 6

Total 3 4514 4508 9

# including against its authorized persons / distributors / employees, etc.

* Non actionable means the complaint that are incomplete / outside the scope of the mutual fund


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FINANCIAL STATEMENTS MARCH 31, 2012 TOGETHER WITH AUDITOR'S REPORT

To the Board of Directors of

SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED - MAGNUM TAXGAIN SCHEME

1. We have audited the attached Balance Sheet of Magnum Taxgain Scheme, (the Scheme) of the SBI Mutual Fund (the Fund) as at March 31, 2012,

the Revenue Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility

of the managements of the Trustees and the Asset Management Companies. Our responsibility is to express an opinion on these financial

statements based on our audit.

2. We conducted our audit in accordance with generally accepted auditing standards in India. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on

a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting

principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that

our audit provides a reasonable basis for our opinion.

3. We report that:

i) We have obtained all information and explanations, which, to the best of our knowledge and belief were necessary for the purpose of our

audit.

ii) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of accounts of the scheme and are inaccordance with the accounting policies and standards as specified in Ninth schedule to the Securities and Exchange Board of India (Mutual

Funds) Regulations, 1996.

ii i) In our opinion, valuation method for Non Traded Securities, adopted by the scheme are fair and reasonable.

iv) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the notes

thereon, gives a true and fair view in conformity with the accounting principles generally accepted in India:

a. In case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2012;

b. In case of Revenue Account, of the deficit of the scheme for the year ended on March 31, 2012; and

c. In the case of Cash Flow Statement, of the cash flow of the scheme for the year ended on March 31, 2012.

For Chandabhoy & Jassoobhoy

Chartered Accountants

Firm Regn. No.: 101647W

Place : Mumbai Samir M. ChinoyDate : June 20, 2012 Partner

Membership No.: F 40853


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ABRIDGED BALANCE SHEET

AS AT MARCH 31, 2012

As at As at

March 31, 2012 March 31, 2011

(````` in Lakhs) (````` in Lakhs)

LIABILITIES

1 Unit Capital 120 ,753 125,308

2 Reserves & Surplus

2.1 Unit Premium Reserves 197,381 209,106

2.2 Unrealised Appreciation Reserve 93,397 124,392

2.3 Other Reserves 58,300 77,343

3 Loans & Borrowings - -

4 Current Liabilities & Provisions

4.1 Provision for doubtful Income/Deposits - -

4.2 Other Current Liabilities & Provisions 8,042 7,226

TOTAL 477,873 543,374

ASSETS

1 Investments

1.1. Listed Securities:

1.1.1 Equity Shares 456,593 524,112

1.1.2 Preference Shares - -

1.1.3 Equity Linked Debentures - -

1.1.4 Other Debentures & Bonds - -

1.1.5 Securitised Debt securities - -

1.2 Securities Awaited Listing:1.2.1 Equity Shares - -



1.2.4 Other Debentures & Bonds - -


1.3 Unlisted Securities1.3.1 Equity Shares - 0



1.3.4 Other Debentures & Bonds - 286


1.4 Government Securities - -

1.5 Treasury Bills - -

1.6 Commercial Paper - -

1.7 Certificate of Deposits 13,203 7,434

1.8 Bill Rediscounting - -

1.9 Units of Domestic Mutual Fund - -

1.10 Foreign Securities - -

1.11 Gold - -

Total Investments 469,796 531,832

2 Deposits - -

3 Other Current Assets

3.1 Cash & Bank Balance 4,553 7,012

3.2 CBLO/ Reverse Repo Lending 787 -

3.3 Others 2,737 4,531

4 Deferred Revenue Expenditure - -

(to the extent not written off)

TOTAL 477,873 543,374

Notes to Accounts - Annexure I


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ABRIDGED REVENUE ACCOUNT

AS AT MARCH 31, 2012

As at As at

March 31, 2012 March 31, 2011

(````` in Lakhs) (````` in Lakhs)

1 INCOME

1.1 Dividend 6,090 6,178

1.2 Interest 2,370 1,184

1.3 Realised Gain / (Loss) on Foreign Exchange Transactions - -

1.4 Realised Gains / (Losses) on Interscheme sale of investments - (78)

1. 5 Realised Gains / (Losses) on External sale / redemption of investments 15,742 32,330

1.6 Realised Gains / (Losses) on Derivative Transactions - -

1.7 Other Income - 1,010

( A ) 24,202 40,624

2 EXPENSES

2.1 Management fees 4,348 4,866

2.2 Service tax on Management fees 448 501

2.3 Transfer agents fees and expenses 1,369 1,536

2.4 Custodian fees 115 188

2.5 Trusteeship fees 54 63

2.6 Commission to Agents 2,418 2,870

2.7 Marketing & Distribution expenses 0 12

2.8 Audit fees 3 3

2.9 Other operating expenses 101 131

( B ) 8,856 10,169

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 15,346 30,4554 Change in Unrealised Depreciation in value of investments (D)3 (1) -

5 NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) 15,345 30,455

6 Change in unrealised appreciation in the value of investments (F)4 (30,995) (9,562)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD ( E + F = G ) (15,650) 20,894

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 30,995 9,562

7.2 Less: Balance transfer to Unrealised Appreciation Reserve - -

7.3 Add / (Less): Equalisation (3,925) (3,169)

8 Total 11,420 27,287

9 Dividend appropriation

9.1 Income Distributed during the year / period 30,463 36,003

9.2 Tax on income distributed during the year / period - -

10 Retained Surplus / (Deficit) carried forward to Balance sheet (19,042) (8,716)

Notes to Accounts - Annexure I


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NOTES TO ACCOUNTS - ANNEXURE I TO THE ABRIDGED BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR / PERIOD

ENDED 31ST MARCH 2012

Amount in ````` in Lakhs unless otherwise stated

1 Investments :-

1.1 The investments of the Scheme are held in the custody of the Funds custodian Stock Holding Corporation of India Limited (SHCIL).

Investments are registered in the name of the scheme except where dispute exist or where the delivery has not become due.

1.2 Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end).

As at 31st March 2012 As at 31st March 2011

Market Value % to Net Assets Market Value % to Net Assets

Nil Nil Nil Nil

1.3 Disclosure in accordance with SEBI Circular No. Cir/IMD/DF/11/2010 dated August 18, 2010:

Particulars As at As at

31st March 2012 31st March 2011

Hedging Positions through Futures Nil Nil

Other than hedging Positions through Futures Nil Nil

Hedging Positions through Put Options Nil Nil

Other than Hedging Positions through Options Nil Nil

Hedging Position through swaps Nil Nil

1.4 Investment in Sponsors / Associates and Group Companies by all schemes.

Issuer and instrument Under this scheme All schemes of the Fund

As at 31-03-12 As at 31-03-11 As at 31-03-12 As at 31-03-11

Equity shares of State Bank of India 7,018.25 26,524.29 32,534.48 61,643.47

Equity shares of State Bank of Mysore Nil Nil Nil 683.11

Non Convertible Debentures of State Bank of India Nil Nil 426.10 431.71

Total 7,018.25 26,524.29 32,960.58 62,758.29

1.5 Open position of Securities Borrowed and /or Lend by the scheme : NIL (Previous Year : NIL)

1.6 Details of NPA: Aggregate market value and provision thereof.

Investment category As at 31st March 2012 As at 31st March 2011

Outstanding Provision Made Book Value Outstanding Provision Made Book Value

- Nil Nil Nil Nil Nil Nil

1.7 Aggregate Unrealised Gain / Loss as at the end of the Financial Year / Period and percentage to net assets.


Amount % to Net Assets Amount % to Net Assets

93,395.83 19.88 1,24,392.23 23.20

1.8 Aggregate Value of Purchase and Sale with Percentage to average assets

Current Year Previous Year

Purchase % to Average Sale % to Average Purchase % to Avg Sale % to Average

Daily Net Daily Net Daily Net Daily Net

AssetsValue Assets Value Assets Value Assets Value

498,697.85 102.00 5,46,184.56 111.72 3,01,791.98 53.12 3,36,173.78 59.17

1.9 Non-Traded securities in the portfolio :


Market Value % to Net Assets Value Market Value % to Net Assets Value

13,203.19 2.81 7,719.83 1.44


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2 Details of Transaction with Associates under regulation 25(8).

a. Brokerage Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes

Segment Name of Related Party Nature of Period Value of Transaction and % Brokerage & % of Total

Relationship Covered of Total Value of Transactions Brokerage

% %

EquitySBICAP Securities Ltd. Group Company Current Year 1,24,342.18 4.05 207.97 4.07

CLSA India Ltd. Group Company Current Year 126,969.99 4.14 229.60 4.50

Futures & SBICAP Securities Ltd. Group Company Current Year 29.11 0.01 0.01 0.01Options

CLSA India Ltd. Group Company Current Year 413.34 0.12 0.12 0.11

Debt No Transaction Executed Through Related Party

Segment Name of Related Party Nature of Period Value of Transaction and % Brokerage & % of Total

Relationship Covered of Total Value of Transactions Brokerage

% %

EquitySBICAP Securities Ltd. Group Company Previous Year 94,065.85 3.71 179.20 4.40

CLSA India Ltd. Group Company Previous Year N.A. - N.A. -

Futures & SBICAP Securities Ltd. Group Company Previous Year 998.88 0.24 0.47 0.36Options

CLSA India Ltd. Group Company Previous Year N.A. - N.A. -

Debt No Transaction Executed Through Related Party

b. Commission Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes

Name of Related Party Nature of Period Business Given and %of Commission paid & %

Relation Covered Total Business Received of Total Commission

paid by the Fund

% %

SBI DFHI Ltd. Group Company Current Year 10,350.18 0.03 0.35 0.00

SBICAP Securities Ltd. Group Company Current Year 2,82,997.55 0.77 20.22 0.14State Bank of Bikaner & Jaipur Group Company Current Year 36,671.84 0.10 43.08 0.30

State Bank of Hyderabad Group Company Current Year 5,33,699.43 1.46 56.65 0.40

State Bank of India Sponsor Current Year 40,79,648.40 11.14 2,757.83 19.36

State Bank of Indore Group Company Current Year - - - -

State Bank of Mysore Group Company Current Year 2,50,560.17 0.68 47.59 0.33

State Bank of Patiala Group Company Current Year 5,88,104.52 1.61 109.58 0.77

State Bank of Travancore Group Company Current Year 1,27,216.43 0.35 96.34 0.68

SBI Capital Markets Ltd. Group Company Current Year - - - -

SBI Commercial & International Bank Ltd. Group Company Current Year - - - -

Malwa Gramin Bank Associate* Current Year 0.15 0.00 0.21 0.00

Uttaranchal Gramin Bank Associate* Current Year 0.00 0.00 0.00 0.00

Purvanchal Gramin Bank Associate* Current Year - - - -

Chattisgarh Gramin Bank Associate* Current Year 68.68 0.00 0.24 0.00

Vananchal Gramin Bank Associate* Current Year 0.00 0.00 0.01 0.00

Total 59,09,317.36 16.13 3,132.10 21.99


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Name of Related Party Nature of Period Business Given and %of Commission paid & %

Relation Covered Total Business Received of Total Commission

paid by the Fund

% %

SBI DFHI Ltd. Group Company Previous Year 17,850.83 0.01 0.62 0.02

SBICAP Securities Ltd. Group Company Previous Year - - - -

State Bank of Bikaner & Jaipur Group Company Previous Year 1,58,879.07 0.01 85.30 0.27

State Bank of Hyderabad Group Company Previous Year 18,36,533.48 0.15 109.55 0.51

State Bank of India Sponsor Previous Year 58,11,152.67 5.68 3,295.39 15.39

State Bank of Indore Group Company Previous Year 0.00 0.00 15.62 0.00

State Bank of Mysore Group Company Previous Year 4,00,413.77 0.36 55.36 0.33

State Bank of Patiala Group Company Previous Year 7,77,852.09 0.33 163.84 0.75

State Bank of Travancore Group Company Previous Year 82,257.33 0.11 126.26 0.48

SBI Capital Markets Ltd. Group Company Previous Year 4,15,074.24 0.03 28.99 0.09

SBI Commercial & International Bank Ltd. Group Company Previous Year 28,124.10 0.01 7.23 0.03

Malwa Gramin Bank Associate* Previous Year 0.48 0.00 3.65 0.01

Uttaranchal Gramin Bank Associate* Previous Year 0.05 0.00 0.00 0.00

Purvanchal Gramin Bank Associate* Previous Year 105.65 0.01 1.49 0.01

Chattisgarh Gramin Bank Associate* Previous Year 50.09 0.00 0.30 0.00

Total 95,28,293.84 6.70 3,893.62 17.89

0.00 Indicate amount less than ` 500

* indicate Associate as per SEBI Regulations

c. The transactions entered into during the year by the scheme with the related parties are as under:

Type of Transaction Name of Related Party Current Year Previous Year

Bank Charges State Bank of Bikaner & Jaipur 0.58 0.56

State Bank of Hyderabad 0.32 0.36State Bank of India 42.73 41.41

State Bank of Mysore 0.72 0.68

State Bank of Patiala 1.14 1.99

State Bank of Travancore 0.10 0.00

Dividend Paid State Bank of India 0.04 Nil

Dividend Received State Bank of India 249.98 128.66

Management Fees SBI Funds Management Pvt. Ltd. 4,348.31 4,865.75

Other Operating Charges Clearing Corporation of India Ltd. 4.95 2.55

Purchase of Securities State Bank of India Nil 11,153.45

Sale of Securities State Bank of India Nil 6,042.51

Trusteeship Fee SBI Mutual Fund Trustee Company Pvt. Ltd. 48.89 62.66

Brokerage on Issue of Units SBI Commercial & International Bank Ltd. Nil 0.14

SBI DFHI Ltd. 0.03 0.00

SBICAP Securities Ltd. 2.50 Nil

State Bank of Bikaner & Jaipur 10.60 12.68State Bank of Hyderabad 5.95 6.67

State Bank of India 523.95 577.73

State Bank of Indore Nil 1.99

State Bank of Mysore 12.33 13.00

State Bank of Patiala 14.68 15.63

State Bank of Travancore 14.00 16.32

Chattisgarh Gramin Bank 0.05 0.07

Malwa Gramin Bank 0.00 0.01

Purvanchal Gramin Bank Nil 0.07

SBI Capital Markets Ltd. Nil 2.19

Brokerage on Investments SBICAP Securities Ltd. 30.56 35.80

CLSA India Ltd 52.72 N.A.


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3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) : NIL ( Previous year : NIL )

4. Unit Capital movement during the year ended / period ended. Plan wise details of movement in units - opening, subscription, redemption, closing.Indicate planwise face value of units.

Current Year Previous Year

No. of Units in Lakhs No. of Units in Lakhs

Growth Dividend Total Growth Dividend Total

Face Value 10.00 10.00 10.00 10.00

Opening 9,253.65 3,277.15 12,530.80 9,507.75 2,992.83 12,500.57

Subscription 439.87 305.25 745.12 655.35 437.90 1,093.25

Dividend Reinvestment 218.81 - 218.81 226.94 - 226.94

Redemption 985.68 433.74 1,419.42 1,136.38 153.57 1,289.95

Closing 8,926.66 3,148.66 12,075.31 9,253.65 3,277.15 12,530.80

5. Expenses other than management fees are disclosed inclusive of service tax.

6. Figures of the previous year have been regrouped, wherever necessary to confirm with the current years figures.

7. Contingent liability in respect of Underwriting Commitments, Uncalled liability on partly paid shares and other commitments are Nil (Previous Year

Nil).

8. The name of the Scheme has been changed w.e.f. 25th April, 2012 as SBI Magnum Tax Gain Scheme.


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KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2012

Current Previous

Year / Period Year / Period

ended 31/03/2012 ended 31/03/2011

1. NAV per unit (`):

Open

Growth 60.07 57.80

Dividend 36.67 39.40

High

Growth 61.74 68.11


Low

Growth 49.05 53.85


End

Growth 58.35 60.07

Dividend 32.05 36.672. Closing Assets Under Management (` in Lakhs)

End 469,831.33 536,148.45

Average (AAuM) 488,900.62 568,110.84

3. Gross income as % of AAuM1 4.95 7.15

4. Expense Ratio:

a. Total Expense as % of AAuM (plan wise) ### 1.81 1.79

b. Management Fee as % of AAuM (plan wise) 0.89 0.86

5. Net Income as a percentage of AAuM2 3.14 5.36

6. Portfolio turnover ratio4 0.39 0.38

7. Total Dividend per unit distributed during the year / period (plan wise) 3.50 4.00

8. Returns:

a. Last One Year

SchemeGrowth (2.86) 3.93

Dividend (2.89) 3.94

Benchmark - BSE 100Growth (9.23) 8.55

Dividend (9.23) 8.55

b. Since Inception

Scheme

Growth 5.38 7.61


Benchmark - BSE 100Growth 5.42 9.54


1. Gross income = amount against (A) in the Revenue account i.e. Income.

2. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD

3. AAuM=Average daily net assets

4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period.

### Total Expenditure does not include loss on sale/redemption of investments, loss on inter-scheme tranfer/sale of investments, net change

in unrealised depreciation in value of investments, deferred revenue expenditure amortised and Provision for Doubtful Debt, Income,

Deposits.


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"Licensed to post under prepayment of postage in cash system underlicense no. MR/Tech/SBI Mutual Fund/AR/Prepaid/2012" By Book Post

Magnum Taxgain

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