MAGNUM TAXGAIN SCHEME REPORT OF THE BOARD OF DIRECTORS OF SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED FOR

THE YEAR 2011-12

The 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. The significant accounting policies through which the financial statements of the schemes are drawn and the explanatory notes to accounts of each of the schemes are also attached. The financial statements have been prepared as per the SEBI (Mutual Fund) Regulations 1996, in the manner required and exhibit true and fair view of the operating results.

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

Magnum Tax Gain Scheme 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 performed exceedingly well contributing meaningfully to the performance of the Fund. Name of Scheme Magnum Taxgain Scheme - 1993 - Growth Benchmark : BSE100 Dividend Benchmark : BSE100 N.A. = Not Applicable Latest 6 Months 7.46 6.40 7.45 6.40 Latest 1 Year (2.86) (9.23) (2.89) (9.23) Latest 3 Years 23.57 22.85 23.56 22.85 Latest 5 Years N.A. N.A. 6.56 6.82 Since Inception 5.38 5.42 16.46 12.23

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 and rising interest rates coupled with policy inaction and execution failure led to a poor performance by Indian capital markets during FY 2012. Corporate profitability 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 currency and higher competitive intensity. With a hazy outlook and depressed profitability, corporate India seems reluctant to commit new capital locally. Most of the capex has been stalled, delayed or suspended. The situation will certainly put to test Indian corporates wherewithal to navigate this challenging business environment. The economy cannot afford continuance of sticky inflation, rising interest rates and a weaker currency. While demand is an addressable issue with marginal stretch 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 expect a tactical readjustment by polity to get the structural India story back on track sooner. There exists a possibility of an outlier blue-swan of synchronized occurrence 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 this scenario we prefer to focus on bottom up stock picking with core beliefs in terms of quality (business, management, and cash flows), prudence (on cash utilization) and agility (in terms of timing and allocation). We prefer to look for businesses with strong franchise value, large consumption compulsion canvass opportunity and penetration potential. We also remain alert to opportunities that provide tactical returns on Asset plays at attractive valuations and rate sensitives given impending policy response. We recommend investors to maintain the discipline of asset allocation and use the downturn in equity 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 Q1 is ` 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 with more 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 at attractive spreads and provide high accrual and roll down. Money market schemes have repriced the portfolios aggressively during the month with investments predominantly in CDs. We anticipate that rates 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 leading to mark to market gains.

Short term funds/ Money market funds

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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 on maturity 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 reduction in 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 liquid schemes,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 the , buyers 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 sector bank 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 nonbanking 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 Net Worth (` Cr.)(Paid up Capital and Reserves & Surplus) Total Income (` Cr.) Net Profit (` Cr.) 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 the Registration 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 Funds Management Private Ltd. (the AMC) to function as the investment Manager for all the Schemes of SBI MF SBI MF was registered with SEBI on . December 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 been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines 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 a supplemental thereto on April 28, 2003 and the same have been replaced by Restated and Amended Investment Management Agreement entered into 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 asset management company. A shareholder agreement in this regard has been entered on April 13, 2011 amongst SBI & AMUNDI. Accordingly, SBI currently holds 63% stake in SBI FMPL and the 37% stake is held by AMUNDI through Amundi India Holding. AMUNDI shall provide strategic support to the Company. SBI & AMUNDI shall jointly develop the Company as an asset management company of international repute by adopting global 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 capacity makes 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 a Portfolio 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 Opportunities Fund (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. 2012 83,951 1,20,873 11,707 2011 64,986 97,219 8,265 2010 65,949 85,962 9,166

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3. INVESTMENT OBJECTIVES, BASIS AND POLICY OF INVESTMENT OF THE SCHEMES
MAGNUM TAXGAIN SCHEME 1993 Launch Date 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 income periodically 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 Growth Option Corpus : : : ` 32.05 ` 58.35 ` 1207.53 crores : February 24, 1993 Growth Option- May 7, 2007

Total assets under management: ` 4698.31 crores

4. SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTING POLICIES ARE IN ACCORDANCE WITH SECURITIES & EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS 1996. 5. UNCLAIMED DIVIDENDS & REDEMPTIONS
Summary of No. of Investors & Corresponding amount scheme wise: Unclaimed Dividends Scheme MAGNUM TAX GAIN FUND No. of Investors 50847 Amount (`) ` 126,820,187.38 Unclaimed Redemptions No. of Investors 410 Amount (`) ` 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 Code Complaint # (a) No. of (b) No. of complaints complaints pending received at the during the beginning year of the year within 30 days 88 3 87 9 79 1 Action on (a) and (b) Resolved Non Actionable* Pending

30 - 60 days

60 - 180 days

Beyond 180 days

0-3 3-6 6-9 9-12 months months months months

IA IB IC ID II A II B II C III A III B III C III D III E IV

Non receipt of Dividend of Units Interest on delayed payment of dividend Non receipt of Redemption Proceeds Interest on delayed payment of Redemption Non receipt of Statement of Account / Unit Certificate Discrepancy in Statement of Account Non receipt of Annual Report / Abridged Summary Wrong switch between Schemes Unauthorized switch between schemes Deviation from Scheme attributes Wrong or excess charges / load Non updation of changes viz. address, PAN, bank details, nominations, etc Others Total

87 3 89 9 80 1

2 1

3976 268 4514

3978 262 4508 6 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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7. STATUTORY INFORMATION:
a. b. c. The Sponsors are not responsible or liable for any loss resulting from the operation of the schemes of the Fund beyond their initial contribution ( to the extent contributed) of ` 5 lakhs for setting up the Fund, and such other accretions / additions to the same. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments in securities or fair value in underlying real estate asset, as the case may be. The Abridged Annual Report has been extracted from the Audited Balance Sheet, Revenue Account and Notes to Accounts. The full Annual Report is disclosed on our website (www.sbimf.com) and is available for inspection at the Head Office of Mutual Fund. The present and prospective unit holders can obtain a copy of the Trust Deed, the full Annual Report of the Fund/AMC and the text of the relevant scheme at a price.

PROXY VOTING
The general voting policies and procedures of SBI Funds Management Pvt Limited for the Schemes of SBI Mutual Fund and the actual exercise of votes in the general meetings of investee companies for financial year 2011-12 have been disclosed on our website (www.sbimf.com) and in the full Annual Report for financial year 2011-12.

LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SETTLER

The main responsibility of the Trustee is to safeguard the interest of the Unit holders and inter-alia ensure that SBI Funds Management Pvt. Ltd. (SBIFM) functions in the interest of the investors and in accordance of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Scheme Information Document of the respective schemes. From the information provided to the Trustee and the reviews the Trustee has undertaken, the Trustee believes SBIFM has operated in the interest of the Unit holders. The settler is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution of ` 5 lacs made by it towards setting of SBI Mutual Fund.

ACKNOWLEDGEMENT
The Directors take this opportunity to express their gratitude for the continued support and co-operation extended by the State Bank of India, AMUNDI, the Registrars & Transfer Agents, the Custodians, the Collecting Banks, Government Agencies, Auditors, SEBI, AMFI, the Board of Directors of SBI Funds Management Private Limited, market intermediaries and the large body of investors in various schemes of the Fund. For and on behalf of the Board of Directors SBI Mutual Fund Trustee Company Pvt. Ltd. Sd/Shriniwas Joshi (Director)

Place Date

: :

Mumbai June 20, 2012

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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. 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. We report that: i) ii) We have obtained all information and explanations, which, to the best of our knowledge and belief were necessary for the purpose of our audit. 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 in accordance with the accounting policies and standards as specified in Ninth schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. In our opinion, valuation method for Non Traded Securities, adopted by the scheme are fair and reasonable. 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. b. c. In case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2012; In case of Revenue Account, of the deficit of the scheme for the year ended on March 31, 2012; and In the case of Cash Flow Statement, of the cash flow of the scheme for the year ended on March 31, 2012.

2.

3.

iii) iv)

For Chandabhoy & Jassoobhoy Chartered Accountants Firm Regn. No.: 101647W

Place Date

: :

Mumbai June 20, 2012

Samir M. Chinoy Partner Membership No.: F 40853

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ABRIDGED BALANCE SHEET AS AT MARCH 31, 2012
As at March 31, 2012 (` in Lakhs) ` LIABILITIES 1 Unit Capital 2 Reserves & Surplus 2.1 Unit Premium Reserves 2.2 2.3 3 4 Unrealised Appreciation Reserve Other Reserves 120,753 197,381 93,397 58,300 8,042 477,873 As at March 31, 2011 (` in Lakhs) ` 125,308 209,106 124,392 77,343 7,226 543,374

Loans & Borrowings Current Liabilities & Provisions 4.1 4.2 Provision for doubtful Income/Deposits Other Current Liabilities & Provisions

TOTAL ASSETS 1 Investments 1.1. Listed Securities: 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities

456,593 13,203 469,796 4,553 787 2,737 477,873

524,112 0 286 7,434 531,832 7,012 4,531 543,374

Securities Awaited Listing: 1.2.1 Equity Shares 1.2.2 Preference Shares 1.2.3 Equity Linked Debentures 1.2.4 Other Debentures & Bonds 1.2.5 Securitised Debt securities Unlisted Securities 1.3.1 Equity Shares 1.3.2 Preference Shares 1.3.3 Equity Linked Debentures 1.3.4 Other Debentures & Bonds 1.3.5 Securitised Debt securities Government Securities Treasury Bills Commercial Paper Certificate of Deposits Bill Rediscounting Units of Domestic Mutual Fund

1.3

1.4 1.5 1.6 1.7 1.8 1.9

1.10 Foreign Securities 1.11 Gold Total Investments 2 3 Deposits Other Current Assets 3.1 Cash & Bank Balance 3.2 CBLO/ Reverse Repo Lending 3.3 Others Deferred Revenue Expenditure (to the extent not written off)

TOTAL Notes to Accounts - Annexure I

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ABRIDGED REVENUE ACCOUNT AS AT MARCH 31, 2012
As at March 31, 2012 (` in Lakhs) ` 1 INCOME 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Dividend Interest Realised Gain / (Loss) on Foreign Exchange Transactions Realised Gains / (Losses) on Interscheme sale of investments Realised Gains / (Losses) on External sale / redemption of investments Realised Gains / (Losses) on Derivative Transactions Other Income (A ) 2 EXPENSES 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Management fees Service tax on Management fees Transfer agents fees and expenses Custodian fees Trusteeship fees Commission to Agents Marketing & Distribution expenses Audit fees Other operating expenses (B ) 3 4 5 6 7 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) Change in Unrealised Depreciation in value of investments (D)3 NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) Change in unrealised appreciation in the value of investments (F)4 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD ( E + F = G ) 7.1 7.2 7.3 8 9 Total Dividend appropriation 9.1 9.2 Income Distributed during the year / period Tax on income distributed during the year / period 30,463 (19,042) 36,003 (8,716) Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve Add / (Less): Equalisation 4,348 448 1,369 115 54 2,418 0 3 101 8,856 15,346 (1) 15,345 (30,995) (15,650) 30,995 (3,925) 11,420 4,866 501 1,536 188 63 2,870 12 3 131 10,169 30,455 30,455 (9,562) 20,894 9,562 (3,169) 27,287 6,090 2,370 15,742 24,202 6,178 1,184 (78) 32,330 1,010 40,624 As at March 31, 2011 (` in Lakhs) `

10 Retained Surplus / (Deficit) carried forward to Balance sheet

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 Market Value Nil % to Net Assets Nil As at 31st March 2011 Market Value Nil % to Net Assets Nil

1.3 Disclosure in accordance with SEBI Circular No. Cir/IMD/DF/11/2010 dated August 18, 2010: Particulars Hedging Positions through Futures Other than hedging Positions through Futures Hedging Positions through Put Options Other than Hedging Positions through Options Hedging Position through swaps 1.4 Investment in Sponsors / Associates and Group Companies by all schemes. Issuer and instrument Equity shares of State Bank of India Equity shares of State Bank of Mysore Non Convertible Debentures of State Bank of India Total Under this scheme As at 31-03-12 7,018.25 Nil Nil 7,018.25 As at 31-03-11 26,524.29 Nil Nil 26,524.29 All schemes of the Fund As at 31-03-12 32,534.48 Nil 426.10 32,960.58 As at 31-03-11 61,643.47 683.11 431.71 62,758.29 As at 31st March 2012 Nil Nil Nil Nil Nil As at 31st March 2011 Nil Nil Nil Nil Nil

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 Outstanding Nil As at 31st March 2012 Amount 93,395.83 % to Net Assets 19.88 Amount 1,24,392.23 As at 31st March 2012 Provision Made Nil Book Value Nil Outstanding Nil As at 31st March 2011 Provision Made Nil As at 31st March 2011 % to Net Assets 23.20 Book Value Nil

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

1.8 Aggregate Value of Purchase and Sale with Percentage to average assets Current Year Purchase % to Average Daily Net AssetsValue 102.00 Sale % to Average Daily Net Assets Value 111.72 Purchase Previous Year % to Avg Daily Net Assets Value 53.12 Sale % to Average Daily Net Assets Value 59.17

498,697.85

5,46,184.56

3,01,791.98

3,36,173.78

1.9 Non-Traded securities in the portfolio : As at 31st March 2012 Market Value 13,203.19 % to Net Assets Value 2.81 As at 31st March 2011 Market Value 7,719.83 % to Net Assets Value 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 Relationship Period Covered Value of Transaction and % of Total Value of Transactions % Equity Futures & Options Debt Segment Name of Related Party SBICAP Securities Ltd. CLSA India Ltd. SBICAP Securities Ltd. CLSA India Ltd. Group Company Group Company Group Company Group Company Current Year Current Year Current Year Current Year 1,24,342.18 126,969.99 29.11 413.34 4.05 4.14 0.01 0.12 207.97 229.60 0.01 0.12 Brokerage & % of Total Brokerage % 4.07 4.50 0.01 0.11

No Transaction Executed Through Related Party Nature of Relationship Period Covered Value of Transaction and % of Total Value of Transactions % Brokerage & % of Total Brokerage % 179.20 N.A. 0.47 N.A. 4.40 0.36 -

Equity Futures & Options Debt b.

SBICAP Securities Ltd. CLSA India Ltd. SBICAP Securities Ltd. CLSA India Ltd.

Group Company Group Company Group Company Group Company

Previous Year Previous Year Previous Year Previous Year

94,065.85 N.A. 998.88 N.A.

3.71 0.24 -

No Transaction Executed Through Related Party

Commission Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes Name of Related Party Nature of Relation Period Covered Business Given and %of Total Business Received % SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Capital Markets Ltd. Group Company Group Company Group Company Group Company Sponsor Group Company Group Company Group Company Group Company Group Company Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Current Year Total 10,350.18 2,82,997.55 36,671.84 5,33,699.43 40,79,648.40 2,50,560.17 5,88,104.52 1,27,216.43 0.15 0.00 68.68 0.00 59,09,317.36 0.03 0.77 0.10 1.46 11.14 0.68 1.61 0.35 0.00 0.00 0.00 0.00 16.13 0.35 20.22 43.08 56.65 2,757.83 47.59 109.58 96.34 0.21 0.00 0.24 0.01 3,132.10 Commission paid & % of Total Commission paid by the Fund % 0.00 0.14 0.30 0.40 19.36 0.33 0.77 0.68 0.00 0.00 0.00 0.00 21.99

SBI Commercial & International Bank Ltd. Group Company Malwa Gramin Bank Uttaranchal Gramin Bank Purvanchal Gramin Bank Chattisgarh Gramin Bank Vananchal Gramin Bank Associate* Associate* Associate* Associate* Associate*

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Name of Related Party Nature of Relation Period Covered Business Given and %of Total Business Received % SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Capital Markets Ltd. Malwa Gramin Bank Uttaranchal Gramin Bank Purvanchal Gramin Bank Chattisgarh Gramin Bank 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 Bank Charges Name of Related Party State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of India State Bank of India SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. State Bank of India State Bank of India SBI Mutual Fund Trustee Company Pvt. Ltd. SBI Commercial & International Bank Ltd. SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Chattisgarh Gramin Bank Malwa Gramin Bank Purvanchal Gramin Bank SBI Capital Markets Ltd. SBICAP Securities Ltd. CLSA India Ltd Current Year 0.58 0.32 42.73 0.72 1.14 0.10 0.04 249.98 4,348.31 4.95 Nil Nil 48.89 Nil 0.03 2.50 10.60 5.95 523.95 Nil 12.33 14.68 14.00 0.05 0.00 Nil Nil 30.56 52.72 Previous Year 0.56 0.36 41.41 0.68 1.99 0.00 Nil 128.66 4,865.75 2.55 11,153.45 6,042.51 62.66 0.14 0.00 Nil 12.68 6.67 577.73 1.99 13.00 15.63 16.32 0.07 0.01 0.07 2.19 35.80 N.A. Group Company Group Company Group Company Group Company Sponsor Group Company Group Company Group Company Group Company Group Company Associate* Associate* Associate* Associate* Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Total 17,850.83 1,58,879.07 18,36,533.48 58,11,152.67 0.00 4,00,413.77 7,77,852.09 82,257.33 4,15,074.24 28,124.10 0.48 0.05 105.65 50.09 95,28,293.84 0.01 0.01 0.15 5.68 0.00 0.36 0.33 0.11 0.03 0.01 0.00 0.00 0.01 0.00 6.70 0.62 85.30 109.55 3,295.39 15.62 55.36 163.84 126.26 28.99 7.23 3.65 0.00 1.49 0.30 3,893.62 Commission paid & % of Total Commission paid by the Fund % 0.02 0.27 0.51 15.39 0.00 0.33 0.75 0.48 0.09 0.03 0.01 0.00 0.01 0.00 17.89

SBI Commercial & International Bank Ltd. Group Company

Dividend Paid Dividend Received Management Fees Other Operating Charges Purchase of Securities Sale of Securities Trusteeship Fee Brokerage on Issue of Units

Brokerage on Investments

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3 4. Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) : NIL ( Previous year : NIL ) 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 No. of Units in Lakhs Growth Face Value Opening Subscription Dividend Reinvestment Redemption Closing 5. 6. 7. 8. 10.00 9,253.65 439.87 218.81 985.68 8,926.66 Dividend 10.00 3,277.15 305.25 433.74 3,148.66 12,530.80 745.12 218.81 1,419.42 12,075.31 Total Growth 10.00 9,507.75 655.35 226.94 1,136.38 9,253.65 Previous Year No. of Units in Lakhs Dividend 10.00 2,992.83 437.90 153.57 3,277.15 12,500.57 1,093.25 226.94 1,289.95 12,530.80 Total

Expenses other than management fees are disclosed inclusive of service tax. Figures of the previous year have been regrouped, wherever necessary to confirm with the current years figures. Contingent liability in respect of Underwriting Commitments, Uncalled liability on partly paid shares and other commitments are Nil (Previous Year Nil). The name of the Scheme has been changed w.e.f. 25th April, 2012 as SBI Magnum Tax Gain Scheme.

Abridged Annual Report 2011-12

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MAGNUM TAXGAIN SCHEME

KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2012
Current Year / Period ended 31/03/2012 1. NAV per unit (`): Open Growth Dividend High Growth Dividend Low Growth Dividend End Growth Dividend 2. Closing Assets Under Management (` in Lakhs) End Average (AAuM) 3. 4. Gross income as % of AAuM1 Expense Ratio: a. Total Expense as % of AAuM (plan wise) ### b. Management Fee as % of AAuM (plan wise) 5. 6. 7. 8. Net Income as a percentage of AAuM2 Portfolio turnover ratio4 Total Dividend per unit distributed during the year / period (plan wise) Returns: a. Last One Year Scheme Growth Dividend Benchmark - BSE 100 Growth Dividend b. Since Inception Scheme Growth Dividend Benchmark - BSE 100 Growth Dividend 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets 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. 5.38 16.46 5.42 12.23 7.61 17.64 9.54 13.56 (2.86) (2.89) (9.23) (9.23) 3.93 3.94 8.55 8.55 1.81 0.89 3.14 0.39 3.50 1.79 0.86 5.36 0.38 4.00 469,831.33 488,900.62 4.95 536,148.45 568,110.84 7.15 60.07 36.67 61.74 37.69 49.05 29.94 58.35 32.05 57.80 39.40 68.11 46.43 53.85 34.26 60.07 36.67 Previous Year / Period ended 31/03/2011

Abridged Annual Report 2011-12

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