Dear Investors,

I am very pleased to inform you that in a first of its kind initiative in the Indian Mutual Fund industry, SBI Mutual Fund announced the opening
of a record number of 51 branches on the same day i.e. 27
th
January 2014, in the beyond Top 15 cities spread across 23 states and one Union
Territory in the country. With this, the total number of branches of SBI MF has gone up to 161 with a network now spreading across 27 states
and 4 union territories. This initiative aims at reaching out to the investors populace spread across the country.
SBI Mutual Fund has grown rapidly over the past couple of years and has added value to all its stakeholders. The Average Asset under
Management (AAUM) of SBI Mutual Fund has grown by 21.6% in last financial year i.e. AAUM for Jan-March 2013 was Rs. 55760 Cr while in
Jan-March 2014 it was Rs. 67818 Cr (Source: AMFI). I would like to thank the millions of investors who have reposed their trust in us.
To promote Mutual Funds it is imperative to generate financial literacy. As a part of Investor Awareness initiatives, Fund Guru - our Investor
Awareness Mascot which is used to simplify Mutual Fund concepts has since been extended to electronic media to improve its reach and
create awareness. 12 animated films of 30 secs each were produced to de-jargonize Mutual Funds for the potential investors. Fund Guru
mascot could be easily identified with a common man.
Keeping in view the prevailing investment sentiments, we launched 2 new funds last year.
i. SBI Tax Advantage Fund Series III a 10 year close-ended Equity Linked Savings scheme for investors to get the tax benefit along with
potential to create wealth.
ii. SBI Dual Advantage Fund Series I a 36 months close-ended hybrid scheme that helps investor get best of equity and debt asset class.
In addition, SBI MF acquired 4 schemes from Daiwa Mutual Fund; one of the schemes was merged with SBI Magnum InstaCash Fund Liquid
Floater and others were renamed as SBI Treasury Advantage Fund, SBI Benchmark Gsec Fund & SBI Small & Midcap Fund.
Many schemes from the fund house have performed well last year; viz. Equity funds such as SBI Magnum Global Fund, SBI Magnum Midcap
Fund, & SBI Magnum Balanced Fund have beaten respective benchmarks in one year category (returns calculated as on 30th March 2014). On
the fixed income side SBI Magnum Monthly Income Plan Floater, SBI Magnum Childrens Benefit Plan & SBI Treasury Advantage Fund have
also outperformed respective benchmarks in one year category (returns calculated as on 30th March 2014).
To offer convenience in investing in Mutual Funds, we have started offering our m-Easy platform. Our m-Easy service doesnt stress you whilst
transacting or even while keeping track of your investments. In the Missed Call Facility, investor has to call on the toll free number 1800 2700
0060 and after 5 seconds the call gets disconnected automatically and a call back is arranged. So now you dont have to get caught up in the
hassles of making a call and can enjoy more free time. With iSIP, you can start a SIP from the convenience of your home. Just log onto our
website and start an SIP online. Its economical and doesnt involve any paperwork. Our Flex-STP plan allows you to take advantage of
movements in the market by investing more when the markets are low and less when markets are on a higher side. We will continue to invest
in a mix of technology that will help you invest and manage your investments conveniently.
Being part of this exciting journey, we continue to look forward to your support, as we embark on our next phase of growth. Your support and
trust has only encouraged us to serve you better. 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 (8am to 10pm) and please do feel free to write to us on
customer.delight@sbimf.com with any aspect of our business that you think we can improve on. Alternatively you can also visit your nearest
Investor Service Centre / Investor Service Desk for any assistance.
Best Wishes,
Dinesh Khara
Managing Director & Chief Executive Officer
SBI MAGNUM TAX GAIN SCHEME
Abridged Annual Report 2013-14 1
REPORT OF THE BOARD OF DIRECTORS OF SBI MUTUAL FUND TRUSTEE COMPANY
PRIVATE LIMITED FOR THE YEAR 2013-14
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
st
March, 2014. The scheme-wise financial statements for the year 2013-14, 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 (BSE100) by a big margin in the financial year 2013-
14. The scheme has generated return of 23.54% and outperformed the benchmark by more than 5.43%. Our overweight in Pharmaceuticals and IT
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 Taxgain Scheme - Regular Dividend 22.6565 23.5429 7.1772 17.3613 12.3089
Benchmark: - S&P BSE 100 17.1905 18.1129 4.6266 18.5205 12.2417
SBI Magnum Taxgain Scheme - Regular Growth 22.6833 23.5687 8.7862 20.1247 8.1207
Benchmark: - S&P BSE 100 17.1905 18.1129 4.6266 18.5205 7.3772
SBI Magnum Taxgain Scheme - Direct Growth 22.9644 24.1384 N.A. N.A. 12.0558
Benchmark: - S&P BSE 100 17.1905 18.1129 N.A. N.A. 8.9460
N.A. - Not Applicable
FUTURE OUTLOOK:
EQUITY:
FY 2013-14 has been amongst one of the most eventful years in India Equities. After witnessing a violently turbulent roller coaster in the first half, the market
steadily broke out of a tight trading band to register a new high and close higher by 18% yoy.
The global environment remained volatile. Economic indicators in key developed economies witnessed improvement in the later part of the half-year. The first half
was dominated by Abenomics, and possible effects of QE tapering. The tapering was an important event to unfold given its relevance to volatile capital flows and
their subsequent impact on emerging markets currencies. As we moved to the second half, as the tapering fear waned, the anchor shifted to political events in
Russia and the looming worries on financial sector in China.
On ground, the economic data series kept improving through the year. After initial shocks on currency and interest rates, thanks to back of sustained efforts by both
the government as well as RBI, most of the indicators like inflation, current account deficit and a stable currency improved towards the end of the fiscal. IIP series
though has been weak. One can expect the base effect, coupled with slow release of the policy logjam to reflect in an improving data series on the GDP as well as
IIP as we move forward.
On reforms front, the outgoing government continued with its resolve to push the envelope further. It also enabled implementation of template to facilitate
development through improved governance, market linked fuel prices, and fuel cost pass through for Power utilities etc. Also passed during the year were
important bills such as National Food Security Bill and Land Acquisition Bill. It also has successfully created a platform to move fuels to market based pricing thereby
reducing the possible subsidies burden.
As we move close to the year-end, elections are at centre stage. Markets have positively discounted the best of the alternatives. Development remains the most
common denominator in political advocacy. These elections provide a reboot opportunity for India to recover from its deficits on economic performance and
governance in the period gone by. The next government will be more intense in its effort to bring back investment cycle and empowered growth.
The year witnessed India sharing both extremes of the sentiments when it comes to its EM peers and successfully traversed from being categorized as being fragile
destination to a preferred one. The global investors have maintained their faith in India story with allocations of over $ 90 billion into equities over the past 5 years.
In a world awash with liquidity and so short of investment avenues, India will continue to attract further large flows given the relative opportunity and valuation.
Spain and Italy whose solvency was questioned 2 years back are seeing their 10-year bonds trading at even less than 3%.
Our belief is that macro fundamentals have already started bottoming out. There are near term challenges such as fiscal constraints, possibility of a poor monsoon
impacting the growth and inflation outlook and stress in the banks balance sheet. However, a new government has the opportunity to unleash the growth potential
by leveraging the structural strengths.
We expect a gradual increase in domestic savings that will be channelized into productive financial assets. Domestic investors have been underweight on equities
and should use the volatility induced by global events as an opportunity to build equity exposure as long term potential remains intact and valuations are
reasonable. The current rally has a potential to gain sustained momentum as the local investors start increasing equity allocations.
FIXED INCOME
Long term funds
We have been maintaining a lower duration strategy in the long term funds and MIPs on account of:
The RBI policy stance is likely to maintain an anti inflation bias with CPI inflation trajectory being targeted as per the Urjit Patel Committee recommendation.
Challenging supply dynamics in the context of government borrowings and the best case assumption of a pause in policy rates.
SBI MAGNUM TAX GAIN SCHEME
Abridged Annual Report 2013-14 2
Over the second half of the year, some of the challenges may gradually diminish on expectation of a declining inflation trend and also a more
credible fiscal consolidation exercise over the medium term. This may lead to a more positive stance on duration.
Short term funds/ Money market funds
RBI liquidity infusion measures such as more term repo could eventually lead to the front end rates easing with the curve likely to steepen, thereby
facilitating more effective rate transmission.
The fair valuation norms on MTM would result in average maturities moving down in the liquid category.
Short term funds with positioning largely in the 3-5 yr AAA bonds and CDs could benefit substantially with a gradual reduction in liquidity
premium as the market transits to a more market based funding of short term liquidity.
Money market funds would focus on generating consistent returns in line with positioning. Particular emphasis will be laid on security / portfolio
liquidity and credit quality.
Operations of the schemes
SBI Mutual Fund manages 29 open ended and 07 close ended schemes and 01 interval scheme, out of which 17 are equity schemes (3 close ended),1
balance scheme, 2 liquid schemes, 2 gilt scheme, 12 debt schemes (4 close ended & 1 interval) and 1 Gold ETF scheme, 1 Sensex ETF Scheme, 1 Gold
Fund scheme. (As per March 2014 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
buyers against claims after establishing the genuineness of the claim. The market value of such securities as on 31
st
March 2014 is ` 16.54 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, 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 15,869 branches in India and 190 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 2014 2013 2012
Net Worth (` Cr.)(Paid up Capital and Reserves & Surplus) 1,18,283 98,884 83,951
Total Income (` Cr.) 1,54,904 1,35,692 1,20,873
Net Profit (` Cr.) 10,891 14,105 11,707
b. 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.
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 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, 2014, 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 TAX GAIN SCHEME
Abridged Annual Report 2013-14 3
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 31.03.14
Unit NAV:
Regular Plan - Growth : `77.3769
Regular Plan - Dividend : `34.6650
Direct Plan - Growth : `77.8620
Direct Plan - Dividend : `42.7488
Corpus : ` `` ``926.70 Crore
Average Assets Under Management : ` `` ``4,054.57 Crore
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 Unclaimed Redemptions
Scheme Name No. of Amount (` `` ``) No. of Amount (` `` ``)
Investors Investors
SBI Magnum Tax Gain Scheme 73,212 153,883,706.25 520 4,774,199.26
SBI MAGNUM TAX GAIN SCHEME
Abridged Annual Report 2013-14 4
6. REDRESAL OF COMPLAINTS RECEIVED AGAINST MUTUAL FUNDS (MFS) DURING 2013 -2014
Total Number of Folios : 4117882
Complaint Type of (a) No. of (b) No. of Action on (a) and (b)
Code Complaint # complaints complaints
pending received Resolved Non Pending
at the during the Actionable
beginning year
of the year within 30 - 60 60 - 180 Beyond 0-3 3-6 6-9 9-12
30 days days days 180 days months months months months
I A Non receipt of Dividend on Units 3 81 83 - - - - 1 - - -
I B Interest on delayed payment of Dividend - 9 9 - - - - - - - -
I C Non receipt of Redemption Proceeds - 114 113 - - - - 1 - - -
I D Interest on delayed payment of Redemption - 6 6 - - - - - - - -
II A Non receipt of Statement of Account/ - 32 32 - - - - - - - -
Unit Certificate
II B Discrepancy in Statement of Account - - - - - - - - - - -
II C Data corrections in Investor details - 730 728 - - - - 2 - - -
II D Non receipt of Annual Report/ - 1 1 - - - - - - - -
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, - 55 55 - - - - - - - -
PAN, bank details, nomination, etc.
IV Others - 158 156 - - - - 2 - - -
V SIP Complaints - 232 232 - - - - - - - -
Total 3 1,418 1,415 - - - - 6 - - -
# including against its authorized persons / distributors / employees, etc.
7. STATUTORY INFORMATION
a. 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.
b. 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.
c. 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.
d. 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 2013-14 have been disclosed on our website (www.sbimf.com) and in the full
Annual Report for financial year 2013-14.
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, television, outdoor, digital, radio and social media. These programs helped the existing and prospective investors in breaking myths
and barriers about mutual fund products as an investment option and also in understanding various mutual fund concepts like Systematic Investment Plan, Equity,
Debt, Exchange Traded Funds, asset allocation and online investments.
SBI MAGNUM TAX GAIN SCHEME
Abridged Annual Report 2013-14 5
LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SETTLOR
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 settlor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution of Rs 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 multiple banks dealing with SBI Mutual Fund both for collections as well as payments, 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/-
Place : Mumbai T. L. Palani Kumar
Date : June 13, 2014 (Director)
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 6
FINANCIAL STATEMENTS MARCH 31, 2014 TOGETHER WITH AUDITOR'S REPORT
To the Board of Directors of
SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED - SBI MAGNUM TAXGAIN SCHEME
Report on the Financial Statements
We have audited the accompanying financial statements of SBI Magnum Tax gain Scheme, (the Scheme) of the SBI Mutual Fund (the Fund), which
comprise the Balance Sheet as at March 31, 2014, and the Revenue Account and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Scheme 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. This responsibility includes the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements 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 control relevant to the Schemes preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances. 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.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required
by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2014;
(b) in the case of the Revenue Account, of the surplus for the year ended on March 31, 2014; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on March 31, 2014.
Report on Other Legal and Regulatory Requirements
1. As required by paragraph 55 of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, we report that:
a) 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;
b) 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;
c) the financial statements have been prepared 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.
2. In our opinion, valuation method for Non Traded Securities, adopted by the scheme are fair and reasonable.
For Chandabhoy & Jassoobhoy
Chartered Accountants
Firm Regn. No.: 101647W
Place : Mumbai Samir M. Chinoy
Date : June 13, 2014 Partner
Membership No.: F 40853
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 7
ABRIDGED BALANCE SHEET
AS AT MARCH 31, 2014
As at As at
March 31, 2014 March 31, 2013
(` `` `` in Lakhs) (` `` `` in Lakhs)
LIABILITIES
1 Unit Capital 92,670 106,107
2 Reserves & Surplus
2.1 Unit Premium Reserves 117,948 155,950
2.2 Unrealised Appreciation Reserve 158,953 90,761
2.3 Other Reserves 46,687 59,425
3 Loans & Borrowings - -
4 Current Liabilities & Provisions
4.1 Provision for doubtful Income/Deposits - -
4.2 Other Current Liabilities & Provisions 23,576 25,208
TOTAL 439,834 437,451
ASSETS
1 Investments
1.1. Listed Securities:
1.1.1 Equity Shares 414,418 405,850
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 -
1.7 Certificate of Deposits - -
1.8 Bill Rediscounting - -
1.9 Units of Domestic Mutual Fund 10,512 21,522
1.10 Foreign Securities - -
1.11 Gold - -
1.12 Inflation Indexed Bonds - -
Total Investments 427,424 427,372
2 Deposits - -
3 Other Current Assets
3.1 Cash & Bank Balance 3,323 2,958
3.2 CBLO/ Reverse Repo Lending 532 1,052
3.3 Others 8,555 6,069
4 Deferred Revenue Expenditure - -
(to the extent not written off)
TOTAL 439,834 437,451
Notes to Accounts - Annexure I
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 8
ABRIDGED REVENUE ACCOUNT
AS AT MARCH 31, 2014
As at As at
March 31, 2014 March 31, 2013
(` `` `` in Lakhs) (` `` `` in Lakhs)
1 INCOME
1.1 Dividend 5,873 6,275
1.2 Interest 923 1,092
1.3 Realised Gain / (Loss) on Foreign Exchange Transactions - -
1.4 Realised Gains / (Losses) on Interscheme sale of investments (0) 21
1.5 Realised Gains / (Losses) on External sale / redemption of investments 21,716 39,050
1.6 Realised Gains / (Losses) on Derivative Transactions - -
1.7 Other Income - -
( A ) 28,512 46,438
2 EXPENSES
2.1 Management fees 5,150 5,127
2.2 Service tax on Management fees 637 634
2.3 Transfer agents fees and expenses 1,004 1,022
2.4 Custodian fees 58 87
2.5 Trusteeship fees 7 52
2.6 Commission to Agents 1,910 2,118
2.7 Marketing & Distribution expenses 40 50
2.8 Audit fees 2 2
2.9 Investor Education Fund 81 47
2.10 Other operating expenses 10 119
( B ) 8,899 9,258
3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 19,613 37,180
4 Change in Unrealised Depreciation in value of investments (D)3 - 1
5 NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) 19,613 37,181
6 Change in unrealised appreciation in the value of investments (F)4 68,192 (2,636)
7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD ( E + F = G ) 87,805 34,545
7.1 Add: Balance transfer from Unrealised Appreciation Reserve - 2,636
7.2 Less: Balance transfer to Unrealised Appreciation Reserve (68,192) -
7.3 Add / (Less): Equalisation (8,433) (9,032)
8 Total 11,180 28,149
9 Dividend appropriation
9.1 Income Distributed during the year / period 23,918 27,024
9.2 Tax on income distributed during the year / period - -
10 Retained Surplus / (Deficit) carried forward to Balance sheet (12,738) 1,125
Notes to Accounts - Annexure I
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 9
NOTES TO ACCOUNTS - ANNEXURE I TO THE ABRIDGED BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR / PERIOD
ENDED 31ST MARCH 2014
Amount in ` `` `` in Lakhs unless otherwise stated
1 Investments:-
1.1 W.e.f. 14th December, 2013 the investments of the Scheme are held in the custody of the Funds custodian SBI-SG Global Securities Services
Private Limited. Prior to that Stock Holding Corporation of India was the Funds custodian. Investments are registered in the name of the
scheme.
1.2 Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end) as on Balance Sheet date is Nil (Previous Year:
NIL).
1.3 Disclosure in accordance with SEBI Circular No. Cir/IMD/DF/11/2010 dated August 18, 2010:
Particulars As at 31
st
March 2014 As at 31
st
March 2013
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 31-03-14 As at 31-03-13 As at 31-03-14 As at 31-03-13
Equity shares of State Bank of India 13,811.76 14,094.70 39,455.80 41,043.95
Non Convertible Debentures of State Bank of India Nil Nil 431.77 440.95
Total 13,811.76 14,094.70 39,887.57 41,484.90
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 2014 As at 31st March 2013
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.
As at 31st March 2014 As at 31st March 2013
Amount % to Net Assets Amount % to Net Assets
1,58,952.77 38.19 90,761.24 22.37
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
1,48,875.74 36.72 2,39,211.64 59.00 1,84,434.85 39.79 2,64,224.43 57.00
1.9 Non-Traded securities in the portfolio:
As at 31st March 2014 As at 31st March 2013
Market Value % to Net Assets Value Market Value % to Net Assets Value
13,006.45 3.12 Nil Nil
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 10
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
% %
Equity
SBICAP Securities Ltd. Group Company Current Year 66,546.78 0.57 69.93 3.81
CLSA India Ltd. - Current Year N.A. N.A. N.A. N.A.
Futures & SBICAP Securities Ltd. Group Company Current Year 8,476.99 3.00 1.99 3.49
Options
CLSA India Ltd. - Current Year N.A. N.A. N.A. N.A.
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
% %
Equity SBICAP Securities Ltd. Group Company Previous Year 87,352.70 3.40 120.90 3.52
CLSA India Ltd. Group Company Previous Year 1,01,134.30 3.94 145.25 4.22
Futures & SBICAP Securities Ltd. Group Company Previous Year 3,096.35 0.76 0.99 0.03
Options CLSA India Ltd. Group Company Previous Year 1,244.25 0.31 0.58 0.02
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 - - - -
SBICAP Securities Ltd. Group Company Current Year 30,342.07 0.05 28.53 0.16
State Bank of Bikaner & Jaipur Group Company Current Year 38,472.90 0.06 35.70 0.21
State Bank of Hyderabad Group Company Current Year 18,583.64 0.03 44.07 0.25
State Bank of India Sponsor Current Year 17,52,288.05 2.88 2,780.29 16.08
State Bank of Mysore Group Company Current Year 30,917.52 0.05 46.29 0.27
State Bank of Patiala Group Company Current Year 1,38,322.53 0.23 122.33 0.71
State Bank of Travancore Group Company Current Year 31,346.00 0.05 79.00 0.46
Malwa Gramin Bank Associate Current Year - - - -
Chattisgarh Rajya Gramin Bank Associate Current Year 16.43 0.00 0.10 0.00
Vananchal Gramin Bank Associate Current Year - - - -
Corpbank Securities Ltd. Associate Current Year 20,000.00 0.03 1.56 0.01
Total 20,60,289.14 3.38 3,137.87 18.15
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 11
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 2,140.03 0.01 0.00 0.00
SBICAP Securities Ltd. Group Company Previous Year 8,04,793.18 1.96 21.10 0.12
State Bank of Bikaner & Jaipur Group Company Previous Year 51,291.21 0.12 35.39 0.20
State Bank of Hyderabad Group Company Previous Year 1,84,654.43 0.45 37.59 0.22
State Bank of India Sponsor Previous Year 32,34,951.20 7.86 3,402.23 19.47
State Bank of Mysore Group Company Previous Year 2,44,266.44 0.59 95.69 0.55
State Bank of Patiala Group Company Previous Year 4,02,138.67 0.98 159.63 0.91
State Bank of Travancore Group Company Previous Year 89,885.76 0.22 93.96 0.54
Malwa Gramin Bank Associate Previous Year 31.05 0.00 0.00 0.00
Chattisgarh Rajya Gramin Bank Associate Previous Year 21.19 0.00 0.26 0.00
Vananchal Gramin Bank Associate Previous Year 2.10 0.00 0.00 0.00
Corpbank Securities Ltd. - Previous Year N.A. N.A. N.A. N.A.
Total 50,14,175.26 12.18 3,845.85 22.01
c. 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
%
SBISG Global Securities Services Pvt. Ltd. Group Company Current Year 54.50 5.26
Name of Related Party Nature of Relation Period Covered Custodian Charges and % of Total
Custodian charges paid by the fund
%
SBISG Global Securities Services Pvt. Ltd. Group Company Previous Year N.A. N.A.
d. 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 1.27 0.52
State Bank of Hyderabad 0.62 0.47
State Bank of India 53.00 39.42
State Bank of Mysore 1.05 0.51
State Bank of Patiala 1.30 1.03
State Bank of Travancore 0.62 0.45
Dividend Paid State Bank of India 0.04 0.04
Dividend Received State Bank of India 265.60 129.85
SKF India Ltd. Nil 112.50
Interest Received State Bank of India Nil 0.86
Management Fees SBI Funds Management Pvt. Ltd. 5150.01 5,126.73
Other Operating Charges Clearing Corporation of India Ltd. 2.12 3.02
Trusteeship Fee SBI Mutual Fund Trustee Company Pvt. Ltd. 6.27 46.33
Brokerage on Issue of Units SBI DFHI Ltd. Nil 0.00
SBICAP Securities Ltd. 2.10 2.27
State Bank of Bikaner & Jaipur 6.99 8.74
State Bank of Hyderabad 4.53 3.13
State Bank of India 398.31 470.02
SBI MAGNUM TAXGAIN SCHEME
Abridged Annual Report 2013-14 12
Type of Transaction Name of Related Party Current Year Previous Year
State Bank of Mysore 4.43 10.08
State Bank of Patiala 11.35 13.09
State Bank of Travancore 10.39 12.23
Chattisgarh Gramin Bank 0.01 0.02
Corpbank Securities Ltd. 0.00 Nil
Brokerage on Investments SBICAP Securities Ltd. 13.42 18.06
CLSA India Ltd . Nil 26.16
Issue/Reissue of Units (In Lakhs) State Bank of India Nil 0.04
Custodian Charges SBI-SG Global Securities Services Pvt. Ltd. 10.44 Nil
0.00 Indicate amount less than ` 500
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 plan wise face value of units.
Current Year Previous Year
Regular Plan No. of Units in Lakhs No. of Units in Lakhs
Dividend Growth Total Dividend Growth Total
Face Value 10.0000 10.0000 10.0000 10.0000
Opening 7,928.33 2,655.66 10,583.99 8,926.66 3,148.66 12,075.31
Subscription 255.46 149.54 405.00 321.87 217.62 539.49
Dividend Reinvestment 173.30 0.00 173.30 207.24 - 207.24
Redemption 1,352.87 612.98 1,965.86 1,527.43 710.62 2,238.05
Closing 7,004.23 2,192.22 9,196.44 7,928.33 2,655.66 10,583.99
Current Year Previous Year
Direct Plan No. of Units in Lakhs No. of Units in Lakhs
Dividend Growth Total Dividend Growth Total
Face Value 10.0000 10.0000 10.0000 10.0000
Opening 18.77 7.92 26.69 - - -
Subscription 28.60 15.26 43.86 18.77 7.92 26.69
Dividend Reinvestment 0.00 0.00 0.00 - - -
Redemption 0.00 0.00 0.00 - - -
Closing 47.37 23.18 70.56 18.77 7.92 26.69
5. Expenses other than management fees are disclosed inclusive of service tax.
6. In compliance with the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012 and SEBI (Mutual Funds) (Second Amendment)
Regulation 2012:-
i) 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.
7. Figures of the previous year have been regrouped, wherever necessary.
8. 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 2013-14 13
KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2014
Current Previous
Year / Period Year / Period
ended 31/03/2014 ended 31/03/2013
1. NAV per unit (`):
Open
Growth Option 62.5996 58.35
Dividend Option 30.8838 32.05
Direct Plan - Growth Option 62.7007 N.A.
Direct Plan - Dividend Option 34.4263 N.A.
High
Growth Option 77.3534 68.2900
Dividend Option 38.0687 37.5100
Direct Plan - Growth Option 77.8355 68.3200
Direct Plan - Dividend Option 42.7347 37.5200
Low
Growth Option 57.6193 54.6400
Dividend Option 28.4269 30.0100
Direct Plan - Growth Option 57.8216 61.9659
Direct Plan - Dividend Option 31.7482 34.0218
End
Growth Option 77.3769 62.5996
Dividend Option 34.665 30.8838
Direct Plan - Growth Option 77.862 62.7007
Direct Plan - Dividend Option 42.7488 34.4263
2. Closing Assets Under Management (` in Lakhs)
End 416,257.91 412,243.10
Average (AAuM) 405,456.74 463,531.91
3. Gross income as % of AAuM
1
7.03 10.02
4. Expense Ratio:
a. Total Expense as % of AAuM (plan wise) ### 2.19 2.00
b. Management Fee as % of AAuM (plan wise) 1.27 1.11
5. Net Income as a percentage of AAuM
2
4.84 8.02
6. Portfolio turnover ratio
4
0.25 0.28
7. Total Dividend per unit distributed during the year / period (plan wise)
Dividend Option 3.50 3.50
Direct Plan - Dividend Option NIL NIL
8. Returns:
a. Last One Year
Scheme
Growth Option 23.5687 7.2828
Dividend Option 23.5429 7.2811
Direct Plan - Growth Option 24.1384 N.A.
Benchmark :- S&P BSE 100
Growth Option 18.1129 6.8399
Dividend Option 18.1129 6.8399
Direct Plan - Growth Option 18.1129 6.8399
b. Since Inception
Scheme
Growth Option 8.1207 5.7025
Dividend Option 12.3089 12.5931
Direct Plan - Growth Option 12.0558 (7.19)
Benchmark :- S&P BSE 100
Growth Option 7.3772 5.6580
Dividend Option 12.2417 11.9561
Direct Plan - Growth Option 8.9460 (5.8138)
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.
5. w.e.f 12th February, 2013 NAVs are published in 4 decimals
### 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.
N.A. - Not Applicable