Dear Investor,

The year gone by was one of many firsts and a landmark year for India. The election of a new government with a clear majority,

the first by a non-Congress party since independence, was by far the biggest development of the year. Markets picked up the

positive sentiments from the new pro-growth government and rallied to their all-time highs with active participation from retail and

institutional investors. The mutual fund industry benefited from this growth as well with a record increase in individual folios and

the industry Assets Under Management touching a high of ` 12 lakh crore.

The fiscal year 2014 was an eventful one for SBI Mutual Fund as we looked at different aspects of the fund house where we could

add value for the investor. The launch of an online investment platform for institutional investors is one such initiative in that direction

as the online medium has now become a powerful enabler. We launched multiple New Fund Offers during the year to add to our

product offerings across asset class and time horizon. New product ideas emerged due to the evolution of the industry. Products

like SBI Dynamic Asset Allocation Fund and SBI Inflation Indexed Bond Fund were offered to address the opportunities arising

out of prevailing investment climate. We continued with multiple offerings under SBI Dual Advantage Fund Series and SBI Equity

Opportunities Fund to meet the demand of the investor community. For those seeking to follow broad-based market indices we

launched 3 Exchange Traded Funds: SBI-ETF BSE 100, SBI-ETF Nifty Junior and SBI-ETF Banking, as well. In addition, we launched

SBI Banking & Financial Services Fund, a fund focused on the banking & financial services sector, and SBI Long Term Advantage

Fund – Series I & II which offers investors’ tax benefits under Section 80C while helping to build wealth over the long-term. We

increased our footprint across the country, adding new locations to serve you, and with over 222 points of acceptance we are

committed to reach out to the ultimate investor.

I am proud to inform you that our existing funds continue to perform well and get featured for their performance and pedigree.

On the equity side, funds like SBI Magnum Equity Fund, SBI Blue Chip Fund, SBI Magnum Global Fund, SBI Magnum Balanced

Fund, SBI Magnum Multiplier Fund, SBI Magnum Midcap Fund and SBI Pharma Fund have done well while on the debt side, SBI

Magnum Gilt Fund – Long Term, SBI Ultra Short Term Debt Fund and SBI Magnum Monthly Income Plan – Floater have done well.

To enable you to experience the convenience of investing we offer varied services at the fund house. Our m-Easy service allows you

to complete any mutual fund transaction simply by sending an SMS from your registered mobile number. In the Missed Call Facility,

an investor has to simply call the toll free number 1800 2700 0060 and after 5 seconds the call gets disconnected automatically and

a call back is arranged. With iSIP, you can start a SIP from the convenience of your home through our website www.sbimf.com.

You can also send an SMS to 56161 with SBIMF as the keyword if you are interested in knowing more about any of our schemes.

Rest assured we continue to invest in people, technology and processes to help you invest and manage your investments safely

and conveniently.

I ask for your continued patronage as we continue our journey with excitement and hope. We would be glad to hear from you on

our dedicated customer care numbers 1800-425-5425 and (044) 28881101 / 36 from Monday to Saturday and please do feel free to

write to us on [email protected] with any queries or suggestions you might have. Alternatively, you can also visit your

nearest SBI MF Branch for any assistance.

Best Wishes,

Dinesh Kumar Khara

Managing Director & CEO

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

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

PRIVATE LIMITED FOR THE YEAR 2014-15

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 31^stMarch, 2015. The scheme-wise financial statements for the year 2014-15, 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 a true and fair view of the operating results.

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

SBI Magnum Tax Gain Scheme has performed well and has outperformed the benchmark index (S&P BSE 100) by a big margin in the financial year 2014-

15. The scheme has generated return of 47.80% and outperformed the benchmark by more than 20%. Our overweight in Pharmaceuticals and Capital

Goods helped the performance. Our bottom up stock picks have also done very well and contributed meaningfully to the performance of the Fund.

Scheme Name

6 Months

1 Year

3 Years

5 Years

Since Inception

SBI Magnum Tax Gain Scheme - Reg Plan - Growth

12.6861

47.7971

25.1319

14.6070

12.4823

Benchmark: - S&P BSE 100

7.3716

28.3173

17.4109

9.7893

9.8250

SBI Magnum Tax Gain Scheme - Dir Plan - Growth

12.9686

48.5055

27.0407

Benchmark: - S&P BSE 100

7.3716

28.3173

17.1889

SBI Magnum Tax Gain Scheme - Reg Plan - Dividend

12.4580

47.4969

21.9415

10.7328

12.4011

Benchmark: - S&P BSE 100

7.3716

28.3173

17.4109

9.7893

12.9262

N.A. - Not Applicable

FUTURE OUTLOOK:

EQUITY:

FY 2014-15 has been a year of strong performance for Indian Equities. It also marked return of domestic investors in Indian Equities after a span of almost

5 years. The BSE Sensex ended the year on a high and closed at 26,717, a gain of 24.89% during the year. This also marked third consecutive year of

positive returns from equity markets in India and helped turn around the sentiment of retail investors in India.

On the domestic front, the year started with a high pitch election campaign and a thumping majority for NDA in the general elections. Also important to

note was the fact that BJP got a simple majority on its own, a feat achieved by political party in India after a gap of 30 years. The election was fought on the

promise of development agenda and hence such a big majority generated immense hope amongst investors, both local and global, in Indian economy and

consequently equity markets in India. The lack of strong policy measures and high subsidy regime in last 5 years had weakened the Indian economy con-

siderably and thus Narendra Modi becoming the Prime Minister of the country reignited the hope of derailed economy coming back on 7%+ growth track.

The new government has been helped by lot of good luck as the crash of global commodity prices including crude helped the process of economic recovery

in India. The government continued to move on positive path with announcement of reforms, lowering of subsidies and streamlining of policies. The key

economic success of the government so far has been abolishment of Diesel subsidies and freeing up of petroleum product prices, big move on financial

inclusion, successful completion of coal and telecom spectrum auction, etc. However, over capacity in domestic economy along with non-supportive

global environment has led to growth stalling in India. Thus while inflation in country has come down below 5% at consumer level government has not

been able to revive growth which is stuck at close to 5%.

The global environment continued at its volatile best. While initially there were hopes of US economy picking up speed, all that hopes started fading with

poor holiday season sales in the last quarter of calendar 2014. Europe continued its struggle for growth in the backdrop of no reforms and excessive debt

in peripheral economies. Japan also offered some ray of hope on back of ‘Abenomics’ but it lasted as long as ‘dawn to dusk’. Asian economies including

China which rely largely on exports suffered on account of lack of growth in their customer markets and thus IMF kept on revising the world GDP growth

downward every quarter. Excessive volatility was also seen in commodity and forex markets leading to disturbance of economic equilibrium in many

economies in the world.

Amidst all these gloom and doom in the world, very few economies offered a ray of hope in pulling up global growth. India being one of them emerged as

‘Oasis of Growth in Desert of Deflation’ in the world. This ignited the ‘hubris’ and led to massive ‘hope’ trade in Indian equity markets. Financial year 2014-15

was one of the very few years in history of Indian stock markets where both foreign and domestic investors poured large sums of money in equity markets.

In the financial year 2014-15 FIIS invested more than 9 billion USD in Indian equities while the domestic institutions invested more than INR 50,000 crores.

While the markets have moved on ‘hope’ trade so far, it will pause for a reality check going ahead. Equity market will look for delivery on the reforms,

policies, growth and earnings front. Any incremental upmove would have to be backed by earnings growth. On valuations, markets are trading at an

above-average forward PE of 17.3x FY16E. We believe the work done by government in 2014-15 will start showing results in the current financial year.

Apart from that lower inflation will also boost domestic demand. While private capex may take some time to pick up, government will kick-start the invest-

ment cycle led by infrastructure investment. Thus the positive momentum in economy will start getting reflected from second half of FY2015-16 leading

to higher growth, better earnings and improved sentiments.

FIXED INCOME

Bond yields have corrected by about 100 bps over the last fiscal year helped by downtick in CPI inflation, FPI flows and also expectation of change in

monetary policy cycle. Post the policy cuts bond yields have stayed in a range over the last quarter.

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

The Inflation targeting framework instituted in the Monetary Policy framework would entail that the hurdle for aggressive monetary easing moves higher.

Recent developments on the inflation outlook provide reasonable confidence of medium term inflation closer to 5 to 5.50%. With the stated comfort of the

central bank on a real policy rate in the range of 1.5% to 2.0%, the expectations of a terminal repo rate in the range of 7.0% to 7.25% seems achievable

at this stage. Continuation of favorable inflation momentum and fiscal and supply side reforms could provide space for additional cuts even as the overall

global environment also looks supportive.

Our portfolio construct remains biased towards a higher duration given that medium term prospects for bond yields remains positive. However we re-

main alert towards any material changes in macro parameters that could change the outlook on policy rate cuts and also the medium term CPI evolution.

Operations of the schemes

SBI Mutual Fund manages 35 open ended and 10 close ended schemes and 01 interval scheme, out of which 21 are equity schemes (6 close ended),1

balance scheme, 2 liquid schemes, 2 gilt scheme, 14 debt schemes (4 close ended & 1 interval) and 5 ETF Scheme, 1 Gold Fund scheme. (As per March

2015 – Monthly Cumulative Report)

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 buy-

ers against claims after establishing the genuineness of the claim. The market value of such securities as on 31^st March 2015 is ` 20.68 Crore.

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

State Bank of India.

SBI Mutual Fund is sponsored by State Bank of India, one of the largest public sector banks in India. The Sponsor is the Settlor 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 with 16,333 branches in India and 191 foreign offices spread over 36 countries, the largest overseas network among all Indian banks. Extensive

network, along with correspondent banking relationship with more than 385 banks and tie ups with 24 Exchanges across all continents, making SBI

a bank with global outreach.

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

2015

2014

2013

Net Worth (` Cr.) (Paid up Capital and Reserves & Surplus)

1,28,439

1,18,283

98,884

Total Income (` Cr.)

1,74,973

1,54,904

1,35,692

Net Profit (` Cr.)

13,102

10,891

14,105

SBI Mutual Fund

SBI Mutual Fund ( SBIMF) was set up as a Trust by the settlors, 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.

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.

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 at 9^th Floor, Crescenzo, C-38 & 39, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051. 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, 2015, the authorized and paid-up capital of the AMC was ` 50 crores and the Networth of the AMC was

` 435.26 Crores. SBI FMPL is a joint venture between State Bank of India (SBI) and AMUNDI, a leading European asset management company. A

shareholder agreement in this regard has been entered on April 13, 2011 between SBI & AMUNDI. Accordingly, SBI currently holds 63% stake in SBI

FMPL and the 37% stake is held by AMUNDI through a wholly owned subsidiary 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.

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

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, 2013 to January 15, 2016.

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.

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

SBI MAGNUM TAX GAIN SCHEME

Launch Date : February 24, 1993

Objective :

An open-ended equity linked savings scheme, the investment objective of the scheme is to 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. It also seeks to distribute income

periodically depending on distributable surplus.

As on 31.03.15

Unit NAV:

Regular Plan - Growth

` 114.3261

Regular Plan - Dividend

` 45.6143

Direct Plan - Growth

` 115.5900

Direct Plan - Dividend

` 56.3195

Corpus

` 802.05

Crore

Average Assets Under Management

` 4874.82

Crore

4. SIGNIFICANT ACCOUNTING POLICIES:ACCOUNTING POLICIES ARE IN ACCORDANCE WITH SECURITIES EXCHANGE

BOARD OF INDIA (MUTUAL FUND) REGULATIONS 1996.

5. UNCLAIMED DIVIDENDS & REDEMPTIONS AS ON 31^ST MARCH,2015

Summary of No. of warrants & corresponding amount scheme wise:

Scheme Name

Unclaimed Dividend

Unclaimed Redemption

Count

Amount

Count

Amount

SBI MAGNUM TAXGAIN SCHEME

90,283

171,367,389.77

632

6,070,311.82

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

6. REDRESAL OF COMPLAINTS RECEIVED AGAINST MUTUAL FUNDS (MFS) DURING 2014 -2015

Total Number of Folios : 4215144

Com-

plaint

Code

Type of Complaint#

(a) No. of

com-

plaints

pending

at the

beginning

of the

year

Action on (a) and (b)

(b) No. of

Com-

plaints

received

during the

year

Resolved

Non

Action-

able *

Pending

Within

30 days

30-60

days

60-180

days

Beyond

180

days

0-3

months

3-6

months

6-9

months

9-12

months

I A

Non receipt of Dividend on Units

I B

Interest on delayed payment of Dividend

I C

Non receipt of Redemption Proceeds

I D

Interest on delayed payment of Redemption

II A

Non receipt of Statement of Account/Unit Cer-

tificate

II B

Discrepancy in Statement of Account

II C

Data corrections in Investor details

815

808

II D

Non receipt of Annual Report/Abridged Summary

III A

Wrong switch between Schemes

III B

Unauthorized switch between Schemes

III C

Deviation from Scheme attributes

III D

Wrong or excess charges/load

III E

Non updation of changes viz. address, PAN, bank

details, nomination, etc

Others*

SIP Complaints

199

198

Total

1250

1244

SBI Mutual Fund for FY 2014-2015 Complaints Summary

Particulars

Count

Total Complaints Received

1250

Total Number of Folios

4215144

Percentage Complaints Against Folios

0.03%

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

7. STATUTORY INFORMATION

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.

Full Annual Report is disclosed on our website ( www.sbimf.com) and is available for inspection at the Head Office of the Mutual fund. Present and

prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC and the text of relevant scheme at a price.

The full valuation policy is available on our website (www.sbimf.com).

PROXY VOTING

The general voting policies and procedures of SBI Funds Management Private Limited for the Schemes of SBI Mutual Fund and the actual exercise of

votes in the general meetings of investee companies for financial year 2014-15 and the Auditors certificate on voting reports have been disclosed on our

website (www.sbimf.com) and in the full Annual Report for the financial year 2014-15.

INVESTOR EDUCATION

During the year, the company carried out various investor education programs across the country with a 360 degree marketing approach, which included

advertisements through print, outdoor, digital and social media. These programs help educate existing/prospective investors sort through the complexities

of mutual funds and investing for their goals. The communications detail the benefits/risks of mutual funds vis-à-vis other investments along with other

concepts like Systematic Investment Plan, Asset Allocation, Equity/Debt/Gold as an asset class amongst others which help people understand, plan and

invest with a financial advisor, if required.

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

FINANCIAL STATEMENTS — MARCH 31, 2015 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

To the Trustees of SBI Mutual Fund

Report on the Financial Statements

We have audited the accompanying financial statements of the SBI MAGNUM TAXGAIN SCHEME which comprise the Balance Sheet as at March 31, 2015,

the Revenue Account, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Trustee of SBI Mutual Fund and SBI Funds Management Private Limited, the Scheme’s Investment Manager are responsible for the preparation of

these financial statements that give a true and fair view of the financial position, financial performance and cash flow of the Scheme in accordance with

the accounting principles generally accepted in India, including the accounting policies as specified in the Ninth Schedule of the Securities and Exchange

Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (“the Regulations”). This responsibility also includes the design, implementation

and maintenance of adequate internal financial controls and ensuring their operating effectiveness and the accuracy and completeness of the accounting

records, relevant to the preparation and presentation of the financial statements of the Scheme that give a true and fair view and are free from material

misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require

that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free

from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected

depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal financial controls relevant to the preparation of the financial statements that give a true

and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether

the SBI Mutual Fund has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An

audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management,

as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information

required by the Regulations as applicable in the manner so required and give a true and fair view in conformity with the accounting principles generally

accepted in India of the state of affairs of the Scheme as at 31st March, 2015, its surplus and its cash flow of the Scheme for the year ended on that date.

Other Matters

The financial statements of the Scheme for the year ended March 31, 2014, were audited by another auditor whose report dated June 13, 2014 expressed

an unmodified opinion on those statements.

Report on Other Legal and Regulatory Requirements

As required under the Regulations, we report that:

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

The Balance Sheet, Revenue Account and Cash Flow Statement dealt with by this Report are in agreement with the books of account of the Scheme;

In our opinion, the Balance Sheet, Revenue Account and Cash Flow Statement dealt with by this report have been prepared in accordance with the

accounting policies and standards as specified in Ninth Schedule of the Regulations.

The methods used to value non-traded securities, as determined by SBI Funds Management Private Limited and as approved by the Trustee of SBI

Mutual Fund are in good faith and in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule

of the Regulations issued by the Securities and Exchange Board of India, and are fair and reasonable.

For Haribhakti & Co. LLP

Chartered Accountants

ICAI Firm Registration No. 103523W

Chetan Desai

Partner

Membership No. 17000

Place : Mumbai

Date : May 22, 2015

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

ABRIDGED BALANCE SHEET

AS AT MARCH 31, 2015

As at

March 31, 2015

(` in Lakhs)

As at

March 31, 2014

(` in Lakhs)

LIABILITIES

Unit Capital

80,204.61

92,669.90

Reserves and Surplus

2.1

Unit Premium Reserves

67,272.90

117,948.53

2.2

Unrealised Appreciation Reserve

268,498.05

158,952.77

2.3

Other Reserves

83,733.66

46,686.71

Loans & Borrowings

- -

Current Liabilities and Provisions

4.1

Provision for doubtful Income/Deposits

210.25

4.2

Other Current Liabilities & Provisions

38,167.61

23,572.96

TOTAL

538,087.08

440,041.12

ASSETS

Investments

1.1

Listed Securities:

1.1.1

Equity Shares

494,412.78

414,417.43

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

1.2.2

Preference Shares

1.2.3

Equity Linked Debentures

1.2.4

Other Debentures & Bonds

1.2.5

Securitised Debt securities

1.3

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

1.4

Government Securities

1.5

Treasury Bills

1.6

Commercial Paper

2,494.09

1.7

Certificate of Deposits

33,070.70

1.8

Bill Rediscounting

1.9

Units of Domestic Mutual Fund

10,512.36

1.10

Foreign Securities

1.11

Gold

1.12

Inflation Indexed Bonds

Total Investments

527,483.48

427,423.88

Deposits

171.00

Other Current Assets

3.1

Cash & Bank Balance

6,530.29

3,322.86

3.2

CBLO/ Reverse Repo Lending

59.21

532.51

3.3

Others

3,843.10

8,761.87

Deferred Revenue Expenditure

- -

TOTAL

538,087.08

440,041.12

Notes to Accounts - Annexure I

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

ABRIDGED REVENUE ACCOUNT

FOR THE YEAR ENDED MARCH 31, 2015

For the

Year ended

March 31, 2015

(` in Lakhs)

For the

Year ended

March 31, 2014

(` in Lakhs)

INCOME

1.1

Dividend

5,430.49

5,873.33

1.2

Interest

520.58

922.42

1.3

Realised Gain / (Loss) on Foreign Exchange Transactions

1.4

Realised Gains / (Losses) on Interscheme sale of investments

717.39

(0.48)

1.5

Realised Gains / (Losses) on External sale / redemption of investments

78,248.31

21,716.27

1.6

Realised Gains / (Losses) on Derivative Transactions

1.7

Other Income

2.84

0.24

( A )

84,919.61

28,511.78

EXPENSES

2.1

Management fees

6,633.59

5,150.01

2.2

Service tax on Management fees

819.91

636.54

2.3

Transfer agents fees and expenses

1,156.09

1,004.16

2.4

Custodian fees

42.15

58.17

2.5

Trusteeship fees

5.47

7.04

2.6

Commission to Agents

2,035.38

1,910.31

2.7

Marketing & Distribution expenses

143.94

39.87

2.8

Audit fees

3.24

1.89

2.9

Investor Education Fund

97.50

81.09

2.10

Other operating expenses

5.62

9.47

( B )

10,942.89

8,898.55

NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C)

73,976.72

19,613.23

Change in Unrealised Depreciation in value of investments (D)

(15.76)

NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D))

73,960.96

19,613.23

Change in unrealised appreciation in the value of investments (F)

109,545.28

68,191.53

NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD ( E + F = G )

183,506.24

87,804.76

7.1

Add: Balance transfer from Unrealised Appreciation Reserve

7.2

Less: Balance transfer to Unrealised Appreciation Reserve

(109,545.28)

(68,191.53)

7.3

Add / (Less): Equalisation

(3,383.73)

(8,433.60)

Total

70,577.23

11,179.63

Dividend appropriation

9.1

Income Distributed during the year / period

33,530.28

23,917.89

9.2

Tax on income distributed during the year / period

- -

Retained Surplus / (Deficit) carried forward to Balance sheet

37,046.95

(12,738.26)

Notes to Accounts - Annexure I

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year /

Period ended 31st March 2015

Amount in ` in Lakhs unless otherwise stated

Investments:-

1.1. All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual Funds)

Regulations, 1996.

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

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

SBI MAGNUM TAXGAIN SCHEME

Particulars

March 31, 2015

March 31, 2014

Hedging Positions through Futures

NIL

Other than hedging Positions through Futures

NIL

Hedging Positions through Options

NIL

Other than Hedging Positions through Options

NIL

Hedging Position through swaps

NIL

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

Issuer

Instrument

March 31, 2015

March 31, 2014

SBI MAGNUM TAXGAIN SCHEME

State Bank of India

Equity shares

17,088.00

13,811.76

ALL SCHEMES OF THE FUND

State Bank of India

Equity shares

49,179.74

39,455.80

State Bank of India

Non Convertible Debentures

954.03

431.77

State Bank Of Travancore

Non-Convertible Debenture

490.24

NIL

Total

50,624.01

39,887.57

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 are NIL (Previous Year: NIL)

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

March 31, 2015

March 31, 2014

Scheme Name

Amount

% of Net Assets

Amount

% of Net Assets

SBI MAGNUM TAXGAIN SCHEME

268,482.29

53.73

158,952.77

38.19

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

Scheme

Purchase / Sale

Current Year

Previous Year

Amount

% of Average

Net Assets

Amount

% of Average

Net Assets

SBI MAGNUM TAXGAIN SCHEME

Purchase

333,452.22

68.40

148,875.74

36.72

SBI MAGNUM TAXGAIN SCHEME

Sale

422,159.75

86.60

239,211.64

59.00

1.9. Non-Traded securities in the portfolio :

March 31, 2015

March 31, 2014

Amount (` In lakhs)

% to Net Assets

Amount (` In lakhs)

% to Net Assets

SBI MAGNUM TAXGAIN SCHEME

33,070.70

6.62

13,006.45

3.12

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

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

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

Brokerage & % of Total

Brokerage

Amount

(` Lakhs)

Amount

(` Lakhs)

Equity

SBICAP Securities Ltd. Group Company

Current Year

103,547.40

3.28

111.23

4.00

Previous Year

66,546.78

0.57

69.93

3.81

Futures & Options

SBICAP Securities Ltd. Group Company

Current Year

No Transaction Executed Through Related Party

Previous Year

8,476.99

3.00

1.99

3.49

Debt

SBICAP Securities Ltd. Group Company

Current Year

54,739.21

0.12

1.59

0.75

Previous Year

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

Commission Paid & % of

Total Commission paid by

the Fund

Amount

(` Lakhs)

Amount

(` Lakhs)

State Bank of india

Sponsor

Current Year

2,035,817.34

2.61

3,337.57

11.01

Previous Year

1,752,288.05

2.88

2,780.29

16.08

SBICAP Securities Ltd.

Group Company

Current Year

24,648.05

0.03

34.19

0.11

Previous Year

30,342.07

0.05

28.53

0.16

State Bank of Hyderabad

Group Company

Current Year

21,952.74

0.03

48.63

0.16

Previous Year

18,583.64

0.03

44.07

0.25

State Bank of Travancore

Group Company

Current Year

36,011.37

0.05

90.56

0.30

Previous Year

31,346.00

0.05

79.00

0.46

State Bank of Bikaner & Jaipur

Group Company

Current Year

24,921.04

0.03

50.50

0.17

Previous Year

38,472.90

0.06

35.70

0.21

State Bank of Patiala

Group Company

Current Year

151,320.13

0.19

97.00

0.32

Previous Year

138,322.53

0.23

122.33

0.71

State Bank of Mysore

Group Company

Current Year

9,515.87

0.01

28.71

0.09

Previous Year

30,917.52

0.05

46.29

0.27

Chattisgarh Rajya Gramin Bank

Associate

Current Year

Previous Year

16.43

0.00

0.10

0.00

Corpbank Securities Ltd.

Associate

Current Year

Previous Year

20,000.00

0.03

1.56

0.01

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

Custodian charges Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes

Name of Related Party

Nature of Relation

Period Covered

Custodian Charges and % of Total

Custodian charges paid by the fund

Amount

(` Lakhs)

SBISG Global Securities Services Pvt. Ltd.

Group Company

Current Year

368.87

50.04

SBISG Global Securities Services Pvt. Ltd.

Group Company

Previous Year

54.50

5.26

Bank charges Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes

Name of associate/ related parties/group

companies of Sponsor/ AMC

Nature of Association/

Nature of Relation

Period covered

Bank Charges & % of total Bank

Charges paid by the fund

Amount

(` Lakhs)

STATE BANK OF BIKANER AND JAIPUR

Group Company

Current Year

3.55

0.77

Group Company

Previous Year

3.85

0.89

STATE BANK OF HYDERABAD

Group Company

Current Year

4.54

0.98

Group Company

Previous Year

3.99

0.92

STATE BANK OF INDIA

Group Company

Current Year

355.30

76.89

Group Company

Previous Year

332.38

76.76

STATE BANK OF MYSORE

Group Company

Current Year

4.47

0.97

Group Company

Previous Year

5.75

1.33

STATE BANK OF PATIALA

Group Company

Current Year

5.92

1.28

Group Company

Previous Year

7.60

1.76

STATE BANK OF TRAVANCORE

Group Company

Current Year

5.56

1.20

Group Company

Previous Year

4.38

1.01

CCIL/CBLO Charges paid to associates/related parties/group companies of Sponsor/AMC

Name of associate/related parties/group

companies of Sponsor/ AMC

Association/ Nature of

Relation

Period covered

( ` Lakhs & % of total CCIL/CBLO

paid the fund)

Amount

(` Lakhs)

The Clearing Corporation of India Ltd.

Associate

Current Year

276.28

100.00

The Clearing Corporation of India Ltd.

Associate

Previous Year

218.54

100.00

Insurance Charges paid to associates/related parties/group companies of Sponsor/AMC

Name of associate/related parties/group

companies of Sponsor/ AMC

Association/ Nature of

Relation

Period covered

( ` Lakhs & % of total Insurance

Charges paid by the fund)

Amount

(` Lakhs)

SBI General Insurance Co. Ltd.

Group Company

Current Year

28.71

100.00

SBI General Insurance Co. Ltd.

Group Company

Previous Year

25.83

100.00

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

Subscription by the schemes (excluding secondary market purchases) in the issues lead managed by an associate company, SBI CAP Securities

Ltd., during the year ended 31st March 2015 is as under :

Name of the issuer

Instrument

Name of the Scheme

Amount

Power Finance Corporation Ltd.

Debt

SBI Magnum Income Fund

5,000.00

Deepak Fertilizers & Petrochemicals Ltd.

Debt

SBI Premier Liquid Fund

11,000.00

Gujarat Narmada Valley Fertilizers and

Chemicals Ltd.

Debt

SBI Premier Liquid Fund

30,000.00

TV Sundaram Iyengar & Sons

Debt

SBI Premier Liquid Fund

67,500.00

Tata Power Company Ltd.

Right Issue

SBI Nifty Index Fund

1.62

SBI Sensex ETF

0.23

Indian Hotels Company Ltd.

Right Issue

SBI MAGNUM CHILDREN’S BENEFIT PLAN

3.65

SBI CAPITAL PROTECTION ORIENTED FUND - SERIES -II

17.33

SBI CAPITAL PROTECTION ORIENTED FUND - SERIES -III

9.90

SBI TAX ADVANTAGE FUND-SERIES-II

24.75

SBI TAX ADVANTAGE FUND - SERIES III

11.76

SBI DUAL ADVANTAGE FUND - SERIES I

14.11

SBI DUAL ADVANTAGE FUND - SERIES II

12.38

SBI DUAL ADVANTAGE FUND - SERIES III

11.26

IFCI Ltd.

Debt

SBI Magnum Balanced Fund

1,100.00

Total

114,706.98

Subscription by the schemes (excluding secondary market purchases) in the issues lead managed by an associate company, SBI CAP Securities

Ltd., during the year ended 31st March 2014 is as under :

Name of the issuer

Instrument

Name of the Scheme

Amount

Sundaram Clayton Ltd

Equity

SBI Magnum Balanced Fund

770.31

Adani Ports and Special Economic Zone

Limited

Equity

SBI Magnum Tax Gain Scheme

1,800.00

SBI Magnum Multicap Fund

390.00

JaypeeInfratec.

Equity

SBI Contra Fund

1,995.00

State Bank of India

Equity

SBI Magnum Multiplier Plus Scheme

2,504.00

SBI Magnum Tax Gain Scheme

10,642.00

SBI Emerging Businesses Fund

3,912.50

SBI Contra Fund

1,565.00

SBI Magnum Equity Fund

1,252.00

SBI Magnum Balanced Fund

1,408.50

SBI Infrastructure Fund

1,408.50

SBI PSU Fund

641.65

SBI Blue Chip Fund

1,956.25

Power Grid Corporation of India Limited

Equity

SBI Magnum Comma Fund

198.11

SBI Infrastructure Fund

495.30

SBI PSU Fund

173.33

SBI Magnum Tax Gain Scheme

1,238.26

SBI Magnum Multicap Fund

46.55

SBI Bluechip Fund

396.22

SBI Magnum Equity Fund

275.12

SBI Contra Fund

605.52

Power Finance Corporation

Debt

SBI Dynamic Bond Fund

5,000.00

Rural Electrification Corporation Ltd

Debt

SBI Dynamic Bond Fund

2,500.00

Food Corporation Of India Ltd

Debt

SBI Dynamic Bond Fund

1,500.00

Total

42,674.12

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

The transactions entered into by the schemes during the year with the related parties are as under :

Scheme

Type of Transactions

Related Party

Amount

31st March 2015

31st March 2014

SBI MAGNUM TAXGAIN

SCHEME

Bank Charges

State Bank of Bikaner & Jaipur

1.13

1.27

State Bank of Hyderabad

0.68

0.62

State Bank of India

50.77

53.00

State Bank of Mysore

0.80

1.05

State Bank of Patiala

1.10

1.30

State Bank of Travancore

0.39

0.62

Brokerage on Investments

SBICAP Securities Ltd.

20.54

13.42

Brokerage on Issue of Units SBICAP Securities Ltd.

3.85

2.10

State Bank of Bikaner & Jaipur

8.28

6.99

State Bank of Hyderabad

7.87

4.53

State Bank of India

544.06

398.31

State Bank of Mysore

11.40

4.43

State Bank of Patiala

15.71

11.35

State Bank of Travancore

12.46

10.39

Chattisgarh Rajya Gramin Bank

NIL

0.01

Corpbank Securities Ltd.

NIL

0.00

Custodian Charges

SBI-SG Global Securities Services Pvt. Ltd.

42.00

10.44

Dividend Paid

State Bank of India

NIL

0.04

Dividend Received

State Bank of India

96.00

265.60

SKF India Ltd.

144.00

NIL

Interest Received

State Bank of India

NIL

9.62

Management Fees

SBI Funds Management Private Limited.

6,633.59

5,150.01

CBLO & CCIL Charges

The Clearing Corporation of India Ltd.

1.05

2.12

Trusteeship Fees

SBI Mutual Fund Trustee Company Pvt. Ltd.

5.47

7.04

0.00 Indicate amount less than ` 500

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.

007

SBI MAGNUM TAXGAIN SCHEME

March 31, 2015

(No. of Units in Lakhs)

Regular

Direct

Growth

Dividend

Growth

Dividend

Total

Face Value

10.0000

Opening

2,192.22

7,004.23

23.18

47.37

9,266.99

Subscription

172.53

291.09

20.23

25.65

509.50

Dividend Reinvestment

(0.05)

Redemption

471.95

1,283.93

0.01

0.08

1,755.98

Closing

1,892.79

6,011.33

43.40

72.94

8,020.46

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

007

SBI MAGNUM TAXGAIN SCHEME

March 31, 2014

(No. of Units in Lakhs)

Regular

Direct

Growth

Dividend

Growth

Dividend

Total

Face Value

10.0000

Opening

2,655.66

7,928.33

7.92

18.77

10,610.69

Subscription

149.54

255.46

15.26

28.60

448.86

Dividend Reinvestment

173.30

Redemption

612.98

1,352.87

0.00

1,965.86

Closing

2,192.22

7,004.23

23.18

47.37

9,266.99

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

In compliance with the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012 and SEBI (Mutual Funds) (Second Amendment)

Regulation 2012:-

A Direct Plan having lower expense ratio has been introduced for processing applications not routed through a distributor. Such Direct Plan

has a separate NAV.

ii)

Service Tax on Management Fees is accrued in addition to the maximum limit of Total Expense Ratio (TER) as per SEBI regulation 52.

iii) An additional expense not exceeding of 0.30 per cent of daily net assets is accrued over and above the maximum limit as per Regulation 52 in

case of new inflows coming from beyond top 15 cities as specified by SEBI.

iv) A separate expense of 0.02 per cent on daily net assets has been accrued for investor education and awareness initiatives within the maximum

limit of TER as per regulation 52

Figures of the previous year have been regrouped, wherever necessary.

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

NIL).

SBI Magnum taxgain scheme

Abridged Annual Report 2014-15

Current Year / Period

ended March 31, 2015

Previous Year / Period

ended March 31,2014

NAV per unit (`):

Open

Regular Plan - Growth Option

77.3534

62.5995

Regular Plan - Dividend Option

34.6545

30.8836

Direct Plan - Growth Option

77.8355

62.7006

Direct Plan - Dividend Option

42.7347

34.4263

High

Regular Plan - Growth Option

119.0683

77.3534

Regular Plan - Dividend Option

53.3423

38.0687

Direct Plan - Growth Option

120.3410

77.8355

Direct Plan - Dividend Option

66.0578

42.7347

Low

Regular Plan - Growth Option

77.3334

57.6193

Regular Plan - Dividend Option

34.6455

28.4269

Direct Plan - Growth Option

77.8237

57.8216

Direct Plan - Dividend Option

42.7276

31.7482

End

Regular Plan - Growth Option

114.3261

77.3534

Regular Plan - Dividend Option

45.6143

34.6545

Direct Plan - Growth Option

115.5900

77.8355

Direct Plan - Dividend Option

56.3195

42.7347

Closing Assets Under Management (` in Lakhs)

End

499709.22

416257.91

Average (AAuM)

487482.02

405456.74

Gross income as % of AAuM¹

17.42

7.03

Expense Ratio:

Total Expense as % of AAuM (plan wise) ###

2.25

2.19

Management Fee as % of AAuM (plan wise)

1.36

1.27

Net Income as a percentage of AAuM²

15.18

4.84

Portfolio turnover ratio⁴

0.18

0.25

Total Dividend per unit distributed during the year / period (plan wise)

Regular Plan - Dividend Option

5.50

3.50

Direct Plan - Dividend Option

7.00

NIL

Returns:

Last One Year

Scheme

Regular Plan - Growth Option

47.7971

23.5687

Regular Plan - Dividend Option

47.4969

23.5429

Direct Plan - Growth Option

48.5055

24.1384

Benchmark :- CNX Nifty Index

Regular Plan - Growth Option

28.3173

18.1129

Regular Plan - Dividend Option

28.3173

18.1129

Direct Plan - Growth Option

28.3173

18.1129

KEY STATISTICS FOR THE YEAR / PERIOD ENDED MARCH 31, 2015.