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Annual Report 2008-09 1

Annual Report 2008-09

From the Managing Directors Desk

Dear Investor,

The year 2008-09 has been one of the toughest ones for the markets and the mutual fund industry, wherein the equity markets

touched new lows after peaking. A lot of factors were responsible for this, including the global crisis. The markets witnessed a

major downfall in October 2008, and later recovered slightly, towards the end of the financial year. We appreciate the patience

shown by our investors who did not panic but stayed invested with a long term horizon. I am happy to share with you that we

continue to increase our investor base and over 57 lakh investors have shown trust in SBI Mutual Fund. Enclosed is the annual

report for the year 2008-09 for your perusal.

While our Assets under Management (AuM) stood at Rs. 26382.68 crores as on 318t March 2009 (Source: http://www.amfiindia.com),

we have managed to win the trust and faith of over 57 lakhs investors, with our consistent performance. And a testimony to thisis in the form of various awards that we have won during the year. SBI Mutual Fund has been voted as the Best Equity Fund-House

Runner Up1 in the country, by Outlook Money - NDTV Profit Awards 2008. Moreover, SBI Mutual Fund has won many other

prestigious awards for scheme performance during the year.

SBI Mutual Fund launched SBI Gold Exchange Traded Scheme (SBI GETS) in March 2009 and offered a new asset class for

investors. Gold has been one of the traditional investment avenues and an asset class which has always seen huge interest from

investors. Now investors can invest in gold with ease and convenience, and at the same time, have liquidity through stock

exchange. It will be our endeavour to introduce innovative products in line with our investors financial requirements.

I assure you that we shall continue to maintain high standards of investment performance in the future, too. It has always been our

endeavour to help our investors achieve their financial dreams, and one of the tools to ensure that an investor stays on course withhis/her dreams, is by investing through a Systematic Investment Plan (SIP) in some of our award winning schemes like Magnum

Contra Fund, Magnum Taxgain Scheme, Magnum Balanced Fund and Magnum Multiplier Plus Scheme, just to name a few.

Lastly, I would also like to assure you of our commitment to provide unparalleled service to our investors and cater to your

information, investment and servicing needs. Please feel free to call at our dedicated customer care numbers, 1 -800-425-5425 and

080-26599420, from Monday to Saturday (8am-10pm) or write to us at [email protected] with your queries. Alterna-

tively, you can also visit your nearest Investor Service Centre / Investor Service Desk for any assistance. We are also constantly

increasing our service network by opening new Investor Service Centres and Investor Service Desks to service our valued

investors better. We have also been adding more distributors, thereby strengthening our distribution network to offer our award-

winning products through them.

I am more than confident that your trust and faith in us will earn rich dividends for you in the future.

Warm regards,

Achal Kumar Gupta

Managing Director

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MAGNUM TAXGAIN SCHEME

REPORT OF THE BOARD OF DIRECTORS

OF SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED FOR THE YEAR 2008-09The Directors of SBI Mutual Fund Trustee Company Private Limited have pleasure in presenting the Audited Accounts in respect of the schemes of SBIMutual Fund for the year ended 31st March 2009. The scheme wise financial statements for the year 2008-09, are enclosed with the report of theauditors. The significant accounting policies through which the financial statements of the schemes are drawn up and the explanatory no tes to accountsof each of the schemes are also attached. The financial statements have been prepared as per the SEBI (Mutual Fund) Regulations 1996, in the mannerrequired and exhibit true and fair view of the operating results.

THE ECONOMY

The Indian economy managed 6.7 per cent economic growth in 2008-09 despite the manufacturing sector recording a dismal performance. A 5.8 percent growth rate during the last quarter of the fiscal, at a time when most developed economies have shrunk, puts India among the top-most growingnations.

The growth rate during 2008-09 is lower than the nine per cent in the preceding fiscal, but not as low as expected by certain analysts and quite in therange projected by the RBI: 6.5-7 per cent. However, manufacturing growth turned negative at 1.4 per cent in the fourth quarter, pulling down Q4 GDPgrowth to 5.8 per cent from 8.6 per cent during the corresponding period of the previous year. GDP growth in the third quarter of 2008-09 has beenrevised to 5.8 per cent from 5.3 per cent estimated provisionally.

Agriculture posted 1.6 per cent growth in 2008-09 against 4.9 per cent in 2007-08, even as it bettered performance in the fourth quarter of the last fiscal

to 2.7 per cent against 2.2 per cent in the same period in the previous fiscal.The Central Statistical Organisation had pegged GDP growth at 7.1 per cent for 2008-09 in its advance estimates. The downward revision in the GDPgrowth rate is mainly on account of lower than anticipated performance in almost all the sectors excluding construction and community, social andpersonal services.

CAPITAL MARKETS

2008-09 was a difficult year for the stock markets worldwide. The global financial crisis, which began in 2007 took a turn for the worse in September2008, with the collapse of several international financial institutions, including investment banks, mortgage lenders and insurance companies leadingto a global crash in stock markets. The slowdow n intensified w ith the US, Europe and Japan sliding into recession. The Bombay Stock Exchange (BSE)Sensex fell from 15,644 as at the end of March 2008 to 9,708 as at the end of March, 2009, while the National Stock Exchange (NSE) index Nifty 50 fellfrom 4,735 to 3,021 during the same period. The markets ramined volatile throughout the year. However, towards the end of the year, the negativesentiment prevailing globally seemed to be waning with investors expecting that low interest rates, stimulus plans and banking bail-outs would lead toa recovery in the world economy. In India, the economy seemed to be getting back into a growth path with major sectors such as cement, steel,automobiles and tourism showing recovery. The year saw negative FII flows, with net sales of equities worth USD 11.8 bn (Previous Year USD 12.9 bn).The domestic mutual funds, however, net bought equities worth Rs. 6,984 crore (Previous Year Rs 13,685 crore) during the year.

MUTUAL FUND INDUSTRY

During the year, the following important developments took place in the Mutual Fund Industry:a) The filing fee & Registration fee payable by mutual funds were revised.

b) SEBI enhanced the aggregate ceiling for overseas investment to US $ 7 billion.

c) Notification on Real Estate Mutual Fund Schemes and Initial Issue Expenses was issued.

d) The formats of Standard Offer Document and Key Information Memorandum were revised.

e) Existing mutual fund schemes were allowed to engage in short selling of securities as well as lending and borrowing of securities after makingadditional disclosures including risk factors in the Scheme Information Document.

f) SEBI clarified that the SEBI circular no. SEBI/IMD/CIR No.1/91171/07 dated April 16, 2007 shall not apply to term deposits placed as margins fortrading in cash and derivatives market.

g) E-mailing of Abridged Scheme-wise Annual Reports was permitted, if so mandated.

h) Valuation procedure of Debt securities was revised.

i) In respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more than Rs.1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilization was madeapplicable.

j) In case of Close Ended Schemes (except Equity Linked Savings Schemes) to be launched on or after December 12, 2008, (i) Mandatory listing wasintroduced; (ii) Listing fee was made a permissible expense to be charged under Regulation 52(4); (iii) Trustees are to ensure that before launch

of the scheme the in-principle approval for listing has been obtained from the stock exchange(s) and appropriate disclosures are made in theScheme Information Document; (iv) NAV to be computed and published on daily basis; (v) Close ended debt scheme shall invest only in suchsecurities which mature on or before the date of the maturity of the scheme.

k) In case of liquid schemes, the tenure of the securities held in the portfolio from the one year was reduced and SEBI directed to discontinue thenomenclature of Liquid Plus Scheme since it gives a wrong impression of added liquidity.

l) SEBI also decided that the Mutual Funds shall not offer/communicate any indicative portfolio and indicative yield.

m) Monthly Portfolio disclosure norms were introduced for debt oriented close-ended and interval schemes/plans.

During the year, the total resources mob ilised by the mutual fund industry stood at Rs 54,26,353 crore (Previous year Rs. 44,64,376 crore) whi le the to talrepurchase/redemption amount was Rs. 54,54,649 crore (Previous year Rs. 43,10,575 crore) (Source : SEBI website). The industry thus saw a netoutflow of Rs. 28,296 crore (Previous year net Inflow of Rs. 1,53,801 crore) during the year. Although the tax-saving funds, balanced funds, growth-oriented equity funds and fund of funds investing overseas contributed a net inflow of Rs. 4,863 crore, the net outflow of Rs. 33,159 crore in income/debt oriented funds and exchange traded funds resulted in a net outflow of Rs. 28,296 crore.

The total Assets under management as on 31st March, 2009 stood at Rs. 4,17,300 crore (Previous year Rs. 5,05,152 crore).

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SBI MUTUAL FUNDS PERFORMANCE

SBI Mutual Fund saw a to tal inflow of Rs. 2,51,548 crore (Previous year Rs. 1,12,065 crore) in the domestic open and close-ended funds during the year.The inflows took place predominantly in the liquid and debt funds. The total redemption amounted to Rs. 2,49,439 crore (Previous year Rs. 1,05,487crore), leaving a net inflow of Rs. 2,109 crore as against a net inflow of Rs. 6,578 crore in the previous year. SBI Mutual Fund had a positive net inflowof Rs. 2,315 crore as against a net outflow of Rs. 28,296 crore for the industry during the year.

Based on average assets under management, SBI Mutual Fund had a market share of 5.15% during 2007-08 which has gone up to 5.52% during 2008-09. (Source: AMFI website). The average assets under management, which were Rs. 25,302 crore for 2007-08, increased to Rs. 27,846 crore during2008-09.

During the year, SBI Mutual Fund launched nineteen funds under SBI Debt Fund Series. The schemes received good response from the investors andtotal funds mobilized under these schemes amounted to Rs 15,109 crore. The first Exchange Traded Fund by SBI Mutual Fund namely SBI Gold ExchangeTraded Scheme was also launched in March, 2009 which has closed for subscription on 28 th April, 2009 and mobilized Rs. 113 crore.

During the year, the num ber of AMFI certified Agents selling SBI Mutual Fund products increased to 29,367 as on 31st March, 2009 from 17,109 as on31st March, 2008. The number of AMFI certified employees in State Bank Group increased to 13,248 as on 31st March, 2009 from 6,150 as on 31st March,2008.

During the year, 2 Investor Service Centres, 5 Investor service Desks and 4 Investor Service Points were added. As on 31 st March, 2009, SBI Mutual Fundhad 30 Investor Service Centres, 48 Investor Service Desks, 7 Investor Service Points and two Overseas Points of presence. As on 31st March, 2009,the number of Business Associates increased to 73 from 38 as on 31st March, 2008 to improve customer service and provide more contact points to theinvestors.

To improve our quality of customer service and operational efficiency, we have put in place the following initiatives during the year:a) Introduction of centralized direct debits through SBI CMP for all investors banking with SBI core banking branches to give a major boost to

Systematic Investment Plans (SIP) business.

b) Introduction of internet and telephone based transactions by use of PIN number. Investors are now able to do several financial and some nonfinancial transaction through this process.

c) Reduction of at par w arrants and replacing them with Direct Credits and ECS as a risk mitigation process. The at par warrants now have severaladditional security features. Further, since the warrant masters are uploaded on SBIs Core Banking System, the instances of misuse of warrantshave declined substantially.

d) Redemptions and income distribution through direct credits with over forty six banks including SBI core banking branches, which account for about85% of daily pay-outs. We are running campaigns to convert investors non-core bank mandates to core banking mandates in a phased manner.

FUTURE PLANS

SBI Mutual Fund plans to augment its distribution network to tier 3 towns and extend the market coverage in rural markets through SBIs businesscorrespondents/facilitators with Micro SIP options. The Micro SIP launched in April, 2009 will give an option to the small investors to invest as low asRs. 100 per SIP and will be an important step towards financial inclusion. The other steps for improving investor services include increasing theelectronic payout of redemption/ dividends to around 90%, introduction of centralized management of SIPs of all associate banks by direct debits tofurther increase our SIP reach and improve efficiency and fine tuning of our Contact Centre services to reduce call waiting time.

AWARDS

The Directors are pleased to inform that SBI Mutual Fund has received the Best Equity Fund House-Runner Up Award instituted by Outlook Money -NDTV Profit Awards 2008.

In addition, the various schemes of SBI Mutual Fund won three awards for their performance during the year as follows:

ICRA MUTUAL FUND AWARDS 2009

Scheme Name Category Aw ard Period

Magnum Tax Gain Scheme 93 Open Ended Equity Linked Savings Schemes (ELSS) 5 Star Fund 3 years

LIPPER FUND AWARDS - INDIA 2009

Scheme Name Category Period

Magnum Balanced Fund (Dividend) Equity India 5 Years

Magnum Sector Funds Umbrella-Contra Fund-Dividend Mixed Assets INR Aggressive 5 years

Summary of Unclaimed Dividends & Redemptions has been reported in Notes to Accounts.Perspective historical 'Per Unit' statistics of all Schemes has been incorporated in the end of full annual report.

SBI Mutual Fund (MF) was set up as a Trust by the Settlers, State Bank of India on June 29, 1987 wi th SBI Mutual Fund Trustee Company Private Limitedas the Trustee (the Trustee Company) as a Trustee in accordance with the provisions of the Indian Trust Act , 1882 and is duly registered under the IndianRegistration Act, 1908. The Trustee has entered into an Investment M anagement Agreement on May 14, 1993 and also a supplemental thereto on April28, 2003 and the same have been replaced by Restated and Amended Investment Management Agreement on December 29, 2004 with SBI FundsManagement Private Ltd. (The AMC) to function as the Investment Manager for all the Schemes of SBIMF. SBIMF was registered w ith SEBI on December23, 1993 under Registration Code MF-009/93/3.

The Trustee is the exclusive owner of the Trust fund & holds the same in trust for the benefit of unit holders. The Trustee has been discharging its dutiesand carrying out the responsibilities as provided in the regulations & the trust deed. The trustee seeks to ensure that the fund and the schemes floatedthere under are managed by the AMC in accordance with the Trust Deed, the Regulations directions and guidelines issued by the SEBI, the StockExchanges, the Association of Mutual Funds in India and other regulatory agencies.

The price and redemption value of the units, and income from them, can go up as well as down w ith the fluctuations in the market value of its underlyinginvestments in securities or fair value in underlying real estate asset, as the case may be.

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The Perform ance of the Schemes as on 31.03.2009 is as under:-

Name of Scheme Unit NAV Type Half 1 year 3 years 5 years Sinceas on year Returns Returns Returns Launch

31/ 03/ 09 Returns of the(Rs.) Scheme

DEBT OR DEBT ORIENTED SCHEMES

GILT SCHEMES

SBI Magnum Gilt LTP - Growth 18.9843 Gilt 2.54 4.39 5.16 3.38 8.09

SBI Magnum Gilt LTP - PF - Fixed Period - 1 year - Growth 11.9820 Gilt 2.32 3.93 5.04 3.26 3.61



SBI Magnum Gilt LTP - PF - Regular - Growth 12.1584 Gilt 2.58 4.46 5.27 3.55 3.89

I-SEC-LI-BEX 17.2211 14.9851 9.9100 6.2936 6.5200

SBI Magnum Gilt STP - Growth 18.0871 Gilt 7.98 11.07 8.59 6.28 7.42

I-SEC-SI-BEX 8.5320 12.2924 9.0272 7.0912 N.A.

LIQUID SCHEMES

SBI Magnum Insta Cash - Cash Plan 19.6477 Liquid 3.93 8.44 7.72 6.65 7.06

CRISIL LIQUID FUND INDEX 4.6648 8.8065 7.5624 6.3316 N.A.

SBI M agnum Insta Cash Fund - Liquid Floater Plan - Grow th 15.2167 Liquid 4.45 8.72 7.94 6.74 6.65

CRISIL LIQUID FUND INDEX 4.6648 8.8065 7.5624 6.3316 5.9400

SBI Premier Liquid Fund - IP - Growth 14.1409 Liquid 3.78 8.21 7.65 6.70 6.5500


DEBT SCHEMES

SBI Magnum Children Benefit Plan 17.8362 Debt (0.72) (1.63) 3.84 6.18 8.43

CRISIL MIP BLENDED INDEX 2.9848 0.4983 5.6265 6.0570 (1.4100)

SBI Magnum Income - FRP - LT - Growth 13.2824 Debt 5.38 7.28 7.07 N.A. 6.25


SBI Magnum Income - FRP - ST - Growth 13.4589 Debt 6.29 9.14 7.48 N.A. 6.60


SBI Magnum Income - Growth 21.2434 Debt 3.60 2.08 3.95 2.81 7.45

CRISIL COMPOSITE BOND INDEX 7.2822 7.3541 6.4176 4.5178 N.A.

SBI M agnum Incom e Plus Fund - Investm ent Plan - Grow th 13.5542 Debt 0.23 (1.43) 3.52 5.86 5.85CRISIL MIP BLENDED INDEX 2.9848 0.4983 5.6265 6.0570 6.3100

SBI Magnum Income Plus Fund - Savings Plan - Growth 10.5064 Debt 0.95 (0.67) 0.82 0.72 0.96

CRISIL COMPOSITE BOND INDEX 7.2822 7.3541 6.4176 4.5178 4.4800

SBI Magnum MIP - Floater - Growth 11.4117 Debt 3.1300 (1.4500) 3.2200 N.A. 3.8000

CRISIL MIP BLENDED INDEX 2.9848 0.4983 5.6265 6.0570 6.2400

SBI Magnum MIP - Growth 16.6875 Debt (4.5600) (6.1000) 2.0700 4.2000 6.7000

CRISIL MIP BLENDED INDEX 2.9848 0.4983 5.6265 6.0570 N.A.

SBI Magnum NRI Investment Fund -Long Term Bond Plan - Growth 10.5545 Debt (0.15) (3.34) 0.77 1.10 1.2500

CRISIL COMPOSITE BOND INDEX 7.2822 7.3541 6.4176 4.5178 4.6000

SBI Magnum NRI Investment Fund -Short Term Bond Plan - Growth 10.9387 Debt 0.22 1.12 1.14 1.66 1.6700


SBI SHF - Short Term - Institutional - Growth 10.0487 Debt N.A. N.A. N.A. N.A. 0.38

SBI SHF - Short Term - Retail - Growth 11.4943 Debt 6.16 9.76 N.A. N.A. 8.7400CRISIL COMPOSITE BOND INDEX 7.2822 7.3541 6.4176 4.5178 4.6000

SBI SHF - Ultra Short Term - IP - Growth 11.4558 Debt 4.04 8.61 N.A. N.A. 8.4200

SBI SHF - Ultra Short Term - Retail - Growth 11.3639 Debt 3.82 8.16 N.A. N.A. 7.9100


SBI Capital Protection Oriented Fund - Series I - Growth 9.8906 Debt 4.6500 1.6900 N.A. N.A. (1.5927)

CRISIL MIP BLENDED INDEX 2.2370 (0.1476) 5.7764 6.1944 0.5927

SBI Debt Fund Series -13 Months - Dec 2007 - IP - Growth 10.9916 Debt N.A. N.A. N.A. N.A. 9.1200

CRISIL COMPOSITE BOND INDEX N.A. N.A. N.A. N.A. 8.7500

SBI Debt Fund Series - 18 Months - 1 - Dec 2006 - Growth 11.3361 Debt N.A. N.A. N.A. N.A. 8.7000


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SBI Debt Fund Series -18 Months - Oct 2007 - IP - Growth 11.2409 Debt 7.4000 9.0400 N.A. N.A. 12.3600

SBI Debt Fund Series -18 Months - Oct 2007 - Ret - Growth 11.2164 Debt 7.2600 8.8000 N.A. N.A. 12.1200

CRISIL COMPOSITE BOND INDEX 7.4894 7.3386 N.A. N.A. 6.8400

SBI Debt Fund Series - 15 Months - 2 - Jan 2007 - Growth 11.1660 Debt N.A. N.A. N.A. N.A. 9.3300


SBI Debt Fund Series - 15 Months - 3 - Feb 2007 - Growth 11.2549 Debt N.A. N.A. N.A. N.A. 9.8300


SBI Debt Fund Series - 13 Months - 3 - March 2007 - Growth 11.2072 Debt N.A. N.A. N.A. N.A. 11.1600


SBI Debt Fund Series - 13 Months - 4 - March 2007 - Growth 11.1958 Debt N.A. N.A. N.A. N.A. 10.9900


SBI Debt Fund Series - 13 Months - 5 - Aug 2007 - IP - Growth 10.9875 Debt N.A. N.A. N.A. N.A. 9.0600

SBI Debt Fund Series - 13 Months - 5 - Aug 2007 - Ret - Growth 10.9735 Debt N.A. N.A. N.A. N.A. 9.0600


SBI Debt Fund Series - 24 Months -May 2007 - Growth 11.8607 Debt 5.6400 9.1400 N.A. N.A. 18.4500

CRISIL COMPOSITE BOND INDEX 7.4894 7.3386 N.A. N.A. N.A.

SBI Debt Fund Series - 13 Months - Aug 2008 - 8 - IP - Growth 10.7034 Debt 6.0900 N.A. N.A. N.A. 7.0300

SBI Debt Fund Series - 13 Months - Aug 2008 - 8 - Ret - Growth 10.6566 Debt 5.6900 N.A. N.A. N.A. 6.5700

CRISIL COMPOSITE BOND INDEX 7.4900 N.A. N.A. N.A. 8.2700

SBI Magnum DFS - 13 Months - 9 - IP - Growth 10.0371 Debt N.A. N.A. N.A. N.A. 0.3700

CRISIL COMPOSITE BOND INDEX N.A. N.A. N.A. N.A. N.A.

SBI Debt Fund Series - 13 Months - Mar 2008 - 7 - IP - Growth 11.1677 Debt 6.8600 11.3900 N.A. N.A. 11.6400

SBI Debt Fund Series - 13 Months - Mar 2008 - 7 - Ret - Growth 11.1574 Debt 6.7600 11.2900 N.A. N.A. 11.5300

CRISIL COMPOSITE BOND INDEX 7.4900 7.3400 N.A. N.A. 6.9100

SBI Debt Fund Series - 18 Months - Apr 2008 - 3 - IP - Growth 10.9084 Debt 7.8200 N.A. N.A. N.A. 8.9800

SBI Debt Fund Series - 18 Months - Apr 2008 - 3 - Ret - Growth 10.9072 Debt 5.4400 N.A. N.A. N.A. 6.5700


SBI Debt Fund Series - 370 Days - 1 - Sep 08 - IP - Growth 10.6706 Debt 5.8600 N.A. N.A. N.A. 6.5100

SBI Debt Fund Series - 370 Days - 1 - Sep 08 - Ret - Growth 10.6433 Debt 5.7500 N.A. N.A. N.A. 6.4000


SBI Debt Fund Series - 370 Days - 2 - Sep 08 - IP - Growth 10.6252 Debt 6.0900 N.A. N.A. N.A. 6.2200

SBI Debt Fund Series - 370 Days - 2 - Sep 08 - Ret - Growth 10.5923 Debt 5.7600 N.A. N.A. N.A. 5.8900


SBI Debt Fund Series - 180 Days - 08 - Nov 08 Growth 10.4587 Debt N.A. N.A. N.A. N.A. 9.3500

CRISIL LIQUID FUND INDEX N.A. N.A. N.A. N.A. 4.2100

SBI Debt Fund Series - 30 Days - 04 - Nov08 Growth 10.0740 Debt N.A. N.A. N.A. N.A. 9.0000


SBI Debt Fund Series - 90 Days - 20 - Feb 08 Growth 10.2498 Debt N.A. N.A. N.A. N.A. 10.0200


SBI Debt Fund Series - 90 Days - 21 - Mar 08 Growth 10.2525 Debt N.A. N.A. N.A. N.A. 10.5200








SBI Debt Fund Series - 90 Days - 23 - Apr 08 Growth 10.2220 Debt N.A. N.A. N.A. N.A. 9.1000


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SBI Debt Fund Series - 90 Days - 24 - May 08 Growth 10.2194 Debt N.A. N.A. N.A. N.A. 9.0000


SBI Debt Fund Series - 90 Days - 25 - June 08 - Ret - Growth 10.2198 Debt N.A. N.A. N.A. N.A. 8.9100


SBI Debt Fund Series - 30 Days - 3 - Jul 08 Growth 10.0913 Debt N.A. N.A. N.A. N.A. 10.3000


SBI Debt Fund Series - 90 Days - 26 - July 08 - Ret - Growth 10.2564 Debt N.A. N.A. N.A. N.A. 10.4000


SBI Debt Fund Series - 90 Days - 27 - Aug 08 - Ret - Growth 10.2619 Debt N.A. N.A. N.A. N.A. 10.0300


SBI Debt Fund Series - 90 Days - 28 - Aug 08 - Ret - Growth 10.2742 Debt N.A. N.A. N.A. N.A. 11.1200


SBI Debt Fund Series- 90 Days - 29 - Dec08 - Ret - Growth 10.2770 Debt N.A. N.A. N.A. N.A. 11.1100


SBI Debt Fund Series - 90 Days - 30 - Jan09 - Ret - Growth 10.2653 Debt N.A. N.A. N.A. N.A. 10.5300


SBI Debt Fund Series - 90 Days - 31 - Feb09 - Ret - Growth 10.2619 Debt N.A. N.A. N.A. N.A. 10.5000


SBI Debt Fund Series - 90 Days - 32 - Feb09 - Ret - Growth 10.2319 Debt N.A. N.A. N.A. N.A. 9.3000


SBI Debt Fund Series - 13 Months - Aug 2008 - 8 - IP - Growth N.A. Debt N.A. N.A. N.A. N.A. N.A.

SBI Debt Fund Series - 13 Months - Aug 2008 - 8 - Ret - Growth N.A. Debt N.A. N.A. N.A. N.A. N.A.

CRISIL COMPOSITE BOND INDEX N.A. N.A. N.A. N.A. N.A.

EQUITY SCHEMES

SBI Magnum Equity Fund Growth 20.54 Equity -22.88 -38.00 N.A N.A. -11.76

Benchmark : BSE100 -26.14 -39.97 N.A. N.A. -13.72

SBI Magnum Equity Fund Dividend 18.06 Equity -22.82 -37.96 -3.79 14.53 12.68

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 13.29SBI Magnum Multiplier Plus 93 Growth 40.26 Equity -22.09 -35.40 -4.58 N.A. 15.04

Benchmark : BSE100 -26.14 -39.97 -5.75 N.A. 8.76

SBI Magnum Multiplier Plus 93 Dividend 32.65 Equity -22.08 -35.40 -4.57 22.14 11.80

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 9.14

SBI Magnum Taxgain Scheme - 1993 Growth 30.91 Equity Tax Savings -23.53 -39.48 N.A N.A. -18.04


SBI Magnum Taxgain Scheme - 1993 Dividend 25.12 Equity Tax Savings -23.51 -39.47 -5.48 26.77 16.24

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 10.35

SBI Magnum Global Fund 94 Growth 21.07 Equity -37.60 -53.46 -15.77 N.A. 2.49

Benchmark : BSE100 -26.14 -39.97 -5.75 N.A. 7.29

SBI Magnum Global Fund 94 Dividend 13.91 Equity -37.62 -53.46 -15.76 18.24 8.56

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 6.29

SBI Magnum Balanced Fund Growth 28.82 Balanced -16.58 -29.36 -2.96 N.A. 13.15

Benchmark : Crisil Balanced Fund Index -11.84 -21.53 0.89 N.A. 9.76

SBI Magnum Balanced Fund Dividend 18.64 Balanced -16.61 -29.39 -2.94 16.78 15.03

Benchmark : Crisil Balanced Fund Index -11.84 -21.53 0.89 8.98 N.A

SBI Magnum Sector Fund Umbrella - FMCG -7.02 -14.05 -6.81 12.98 5.84

Benchmark : BSE FMCG 12.75 Equity -5.76 -11.08 -2.71 16.61 5.04

SBI Magnum Sector Fund Umbrella - IT -44.20 -56.37 -21.51 5.39 4.34

Benchmark : BSE IT 8.03 Equity -26.15 -35.57 -17.21 6.17 6.15

SBI Magnum Sector Umbrella - Pharma Growth 17.59 Equity -33.74 -38.42 -20.93 N.A. -5.30

Benchmark : BSE-HC -22.93 -26.45 -9.80 N.A. -1.90

SBI Magnum Sector Umbrella - Pharma Dividend 14.51 Equity -33.59 -38.28 -20.89 4.49 8.83

Benchmark : BSE-HC -22.93 -26.45 -9.80 4.53 8.47

SBI Magnum Sector Fund Umbrella - Contra Growth 29.67 Equity -20.01 -35.01 -2.75 N.A. 16.22

Benchmark : BSE100 -26.14 -39.97 -5.75 N.A. 9.39

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SBI Magnum Sector Fund Umbrella - Contra Dividend 16.89 Equity -19.99 -34.99 -2.74 27.59 23.40

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 10.58

SBI Magnum Index Fund Growth 25.8285 Equity -23.08 -37.88 -5.38 9.79 14.08

Benchmark : S&P Nifty -22.96 -36.19 -3.88 11.25 14.92

SBI Magnum NRI Investment Fund - Flexi Asset Plan Growth 16.5839 Equity -20.17 -34.65 -9.81 11.20 10.12

Benchmark : BSE100 -26.14 -39.97 -5.75 10.74 8.42

Benchmark : Crisil Balanced Fund Index -11.84 -21.53 0.89 8.98 7.92

Benchmark : Crisil Composite Bond Fund Index 7.28 7.35 6.42 4.52 4.49

SBI Magnum Sector Umbrella - EmergingBusinesses Fund Growth 13.80 Equity -38.37 -58.04 -20.62 N.A. 7.36

Benchmark : BSE 500 -28.06 -42.77 -7.94 N.A. 10.45

SBI Magnum Midcap Fund Growth 9.92 Equity -40.19 -59.32 -19.59 N.A. -0.23

Benchmark : CNX Midcap -30.33 -45.40 -10.70 N.A. 4.69

SBI Magnum COMMA Fund Growth 12.82 Equity -22.81 -38.21 -3.38 N.A. 6.91Benchmark : BSE200 -26.69 -40.98 -6.88 N.A. 3.95

SBI Magnum Multi Cap Fund Growth 9.66 Equity -25.41 -41.77 -11.54 N.A. -0.98

Benchmark : BSE100 -26.14 -39.97 -5.75 N.A. 2.28

SBI Magnum Bluechip Fund Growth 7.65 Equity -20.97 -37.96 -10.74 N.A. -8.21

Benchmark : BSE100 -26.14 -39.97 -5.75 N.A. -2.36

SBI Arbitrage Opportunities Fund Growth 12.0956 Equity 3.67 6.84 N.A. N.A. 8.54

Benchmark : Crisil Liquid Fund Index 4.66 8.81 N.A. N.A. 7.91

SBI One India Fund Growth 5.47 Equity -29.96 -44.75 N.A. N.A. -23.96


SBI Infrastructure Fund - Series I Growth 5.65 Equity -29.55 -47.34 N.A. N.A. -28.01


SBI Tax Advantage Fund - Series 1 Growth 6.09 Equity Tax Savings -29.43 N.A. N.A. N.A. -40.30

Benchmark : BSE100 -26.14 N.A. N.A. N.A. -39.97

N.A. = Not App licable. The date of schemes redeemed dur ing the year are as of redemption date.

OBJECTIVES AND INVESTMENT POLICY OF THE SCHEME

Launch Date : February 24, 1993

Growth Option- May 7, 2007

Objective :

An open-ended equity linked savings scheme. The objective of the scheme is a) Deliver the benefit of investment in a portfolio of equity shares, whileoffering deduction on such investments made in the scheme under section 80C of the Income Tax Act, 1961. b) Distribute income periodicallydepending on distributable surplus.

Magnum Taxgain delivers the benefit of investment in a portfolio of equity shares, while offering tax rebate on such investments made in the schemeunder Sec 80C of the Income Tax Act, 1961. The portfolio strategy is to make long term investments in stocks consistent with the average duration ofinvestor funds. To invest in companies in all the market cap segments through both top down and bottom up investment philosophies. To invest incompanies with sustainable & scalable business models which can lead to significant out-performance in the long run.

As on 31.03.09

Unit NAV:

Dividend Option : Rs. 25.12

Growth Option : Rs. 30.91

Corpus : Rs. 1,069.43 crores

Total assets under management: Rs. 2,820.87 crores.

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STATUTORY DETAILS

SBI Mutual Fund has been set up as a trust under t he Indian Trusts Act, 1882. State Bank of India (SBI), the sponsor is not responsible or liable for anyloss resulting from the operation of the schemes beyond the initial contribution of an amount of Rs 5 lacs made by it towards setting up of the mutualfund.

LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SETTLOR

The main responsibility of the Trustee is to safeguard the in terest 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, theprovisions of the Trust Deed and the offer documents of the respective schemes. From the information provided to the Trustee and the reviews theTrustee 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 lacsmade 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, SocitGnrale Asset Management, the Registrars & Transfer Agents, the Custodians, the Collecting Banks, Government Agencies, Auditors, SEBI, AMFI, theBoard of Directors of SBI Funds Management Private limited, market intermediaries and the large body of investors in various schemes of the Fund.

Full Annual Report shall be disclosed on t he website w w w.sbimf.com and shall be available for inspection at t he Head Office of the mut ual fund.Present and prospective unit -holder can obtain the copy of trust deed and t he full Annual Report of t he Fund/ AMC at a pri ce.

For and on behalf of the Board of DirectorsSBI Mutual Fund Trustee Company Pvt. Ltd.

Place : Mumbai Dr. Malati AnagolDate : 18th July, 2009 (Chairperson)

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FINANCIAL STATEMENTS M ARCH 31, 2009 TOGETHER WITH AUDITOR'S REPORT

To the Board of Directors o f

SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED - MAGNUM TAXGAIN SCHEME

1. We have audited the attached Balance Sheet as at March 31, 2009, the Revenue Account and the Cash Flow Statement for the year ended on that

date annexed thereto of Magnum Taxgain Scheme 1993 (The scheme) of the SBI Mutual Fund (The Fund). These financial statements are theresponsibility of the Managements of the Trustee and the Asset Management companies. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

2. We conducted our audit in accordance with generally accepted auditing standards in India. Those standards require that w e plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, ona 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 the m anagement, as well as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

3 . We repor t that :

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

ii. The Balance Sheet, the Revenue Account and Cash Flow Statement dealt with by this report are in agreement with the books of account ofthe Scheme.

iii . In our opinion, valuation methods for Non Traded Securities, adopted by the scheme are fair and reasonable and are in accordance with theguidelines for valuation issued by Securities and Exchange Board of India and approved by the Trustees.

iv. The Balance Sheet and the Revenue Account dealt with by thi s report have been prepared in accordance with the accounting policies andstandards adopted by the trustees of the Fund and as specified in the Ninth Schedule to the Securities and Exchange Board of India (MutualFunds) Regulations, 1996.

v. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notesthereon, give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and

fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the state of affairs of the scheme as at March 31, 2009;

(b) in the case of Revenue Account, of the deficit of the scheme for the year ended on March 31, 2009; and

(c) in the case of Cash Flow Statement, of the cash flow of the scheme for the year ended on March 31, 2009.

FOR M. M. NISSIM AND CO.

Chartered Accountants

Place : Mumbai Sanjay KhemaniDate : July 18, 2009 (Partner)

Membership No.: 44577

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BALANCE SHEET

AS AT MARCH 31, 2009

Schedule As at As atM arch 31, 2009 March 31, 2008

Rupees Rupees

LIABILITIES

Unit Capital A 10,694,261,497 7,553,544,219

Reserves and Surplus B 22,767,689,121 20,761,805,748

Unrealised Appreciation in Value of Investments - 4,090,710,801

Unitholders Fund 33,461,950,618 32,406,060,768

Load Carried Forward 10,638,952 -

Current Liabilities and Provisions C 838,372,028 491,480,862

Tot al 34,310,961,598 32,897,541,630

ASSETS

Investments D 26,476,822,484 30,939,446,962

Deposits E 500,000,000 -

Other Current Assets F 2,080,905,051 1,958,094,668

Deficit in Revenue Account 5,253,234,063 -

Tot al 34,310,961,598 32,897,541,630

Per unit Net Asset Value Refer to notes to accounts

Significant Accounting Policies and Notes to Accounts G

This is the Balance Sheet referred to in our report of even date

FOR M.M. NISSIM AND CO. FOR SBI MUTUAL FUND TRUSTEE CO. PVT. LTD. FOR SBI FUNDS MANAGEMENT PVT. LTD.Chartered Accountants

Sanjay Khemani Dr. Malat i Anagol Bharat i Rao Achal Kumar Gupta Didier Turpin(Partner) (Chairperson) (Director) (Managing Director) (Dy. CEO)

Membership No.: 44577

Rajkumar S. Adukia Ashw ini Kumar Jain Jayesh Shroff

(Director) (Chief Operating Officer) (Fund Manager)

Place : Mumbai Place : Mumbai Place : MumbaiDate : July 18, 2009 Date : July 18, 2009 Date : July 18, 2009

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REVENUE ACCOUNTFOR THE YEAR ENDED MARCH 31, 2009

For the For theYear ended Year ended

March 31, 2009 M arch 31, 2008Rupees Rupees

INCOMEDividend 316,946,723 157,249,137Interest 335,069,373 274,285,366Profit on sale/redemption of investments (net) (other than inter scheme) - 821,778,590Profit on inter-scheme transfer/sale of investments (net) - 665,644,365Profit on derivative transactions (net) - 23,557,405Provision for accrued income, investments and debtors, no longer required, written back 811,972 1,027,476

Total 652,828,068 1,943,542,339

EXPENSES AND LOSSESLoss on sale/redemption of investments (net) (other than inter scheme) 1,015,254,304 -Loss on inter-scheme transfer/sale of investments (net) 34,560,726 -

Provision for Doubtful Debt, Income, Deposits 39,485 -Management fees 195,340,701 161,535,587Service Tax on Management Fees 23,975,715 -Trusteeship fees 3,128,173 2,733,746Commission to agents (net of load utilised) 171,850,602 161,759,513Publicity expenses 4,589,451 3,654,689Audit fees 283,031 218,053Other operating expenses 6,402,006 35,388,430Custodian charges 9,477,769 10,616,200Registrars fees 106,132,711 133,026,285

Total 1,571,034,674 508,932,503

Net realised Gains/ (Losses) for the year (918,206,606) 1,434,609,836

Change in unrealised depreciation in value of investments (9,107,061,967) -

Net Gains/ (Losses) for the year (10,025,268,573) 1,434,609,836

Change in unrealised appreciation in value of investments (4,090,710,801) 1,296,709,505

Net Surplus/ (Deficit ) for the year (14,115,979,374) 2,731,319,341

Add: Amount transferred from Unrealised Appreciation Reserve 4,090,710,801 -

Less: Amount transferred to Unrealised Appreciation Reserve - (1,296,709,505)

Add/(Less): Amount transferred from/ (to) Equalisation Reserve 3,555,315,304 5,918,145,524

Surplus brought forward 1,217,040,636 -

Surplus / (Deficit ) available for appropriat ion (5,252,912,633) 7,352,755,360

Appropriations

Income distribution 321,430 6,135,714,724

Surplus/ (Deficit ) carried forw ard (5,253,234,063) 1,217,040,636

Significant Accounting Policies and Notes to Accounts G

This is the Revenue Account referred to in our report of even date


Sanjay Khemani Dr. Malat i Anagol Bharat i Rao Achal Kumar Gupta Didier Turpin(Partner) (Chairperson) (Director) (Managing Director) (Dy. CEO)Membership No.: 44577

Rajkumar S. Adukia Ashw ini Kumar Jain Jayesh Shroff(Director) (Chief Operating Officer) (Fund Manager)


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CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31 2009

March 31, 2009 M arch 31, 2008Rupees Rupees

A. Cash flow f rom Operat ing Act i vi t y

Net Gain/ (Loss) for the year (14,115,979,374) 2,731,319,341Change in unrealised depreciation in value of investments (9,107,061,967) -Change in unrealised appreciation in value of investments (4,090,710,801) 1,296,709,505Provision for accrued incom e, investm ents and debtors, no longer required, w ritten back (811,972) (1,027,476)

Provision for Doubtful Debt, Income, Deposits 39,485 -

Operat ing Profit / (Loss) Before Working Capital Changes (27,314,524,629) 4,027,001,370

Adjustments for:-(Increase)/Decrease in Other Current Assets 179,625,482 (2,167,224)(Increase)/Decrease in Investments 17,660,397,246 (20,002,669,113)

Increase/(Decrease) in Current Liabilities and Provisions 397,758,083 79,379,939

Net Cash Generated From/ (Used in) Operat ions (A) (9,076,743,818) (15,898,455,028)

B. Cashflow f rom Financing Act ivi t iesIncrease/(Decrease) in Unit Corpus 3,140,717,278 3,481,260,605

Increase/(Decrease) in Unit Premium/ Equalisation reserve 6,778,239,313 15,055,435,999Increase/(Decrease) in Load 10,638,952 -Outstanding Receivable/Payables for Unit Corpus 418,075,723 87,716,257Dividend Paid during the year (56,091,440) (6,197,402,326)

Net Cash Generated From/ (Used in) Financing Act ivit ies (B) 10,291,579,826 12,427,010,535

Net Increase/ (Decrease) in Cash & Cash Equivalents (A+ B) 1,214,836,008 (3,171,444,493)

Cash and Cash Equivalents as at the beginning of the year 662,069,538 3,833,514,031Cash and Cash Equivalents as at the close of the year 1,876,905,546 662,069,538

Net Increase/ (Decrease) in Cash & Cash Equivalents 1,214,836,008 (3,171,444,493)

Components of cash and cash equivalents

With Banks - on current account 357,357,459 511,472,980

Money at Call with Institutions 1,019,548,087 150,596,558

With Banks - Fixed Deposits 500,000,000 -

1,876,905,546 662,069,538

This is the Cash Flow Statement referred to in our report of even date


Sanjay Khemani Dr. Malat i Anagol Bharat i Rao Achal Kumar Gupta Didier Turpin(Partner) (Chairperson) (Director) (Managing Director) (Dy. CEO)Membership No.: 44577

Rajkumar S. Adukia Ashw ini Kumar Jain Jayesh Shroff(Director) (Chief Operating Officer) (Fund Manager)


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SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2009

As at March 31, 2009 As at March 31, 2008

Rupees Rupees

Dividend Growth Total Dividend Growth Total

SCHEDULE A

UNIT CAPITAL

INITIAL CAPITAL 739,583,000 - 739,583,000 739,583,000 - 739,583,000

ISSUED AND SUBSCRIBED (Face Value)

(Units of Rs10/- each fully paid up)

Outstanding at the beginning of the year 6,436,098,763 1,117,445,456 7,553,544,219 4,072,283,614 - 4,072,283,614

Add :Magnums reissued during the year 2,005,729,548 1,202,705,892 3,208,435,440 2,100,202,900 1,117,445,456 3,217,648,356

Add : Dividend reinvested during the year (137,451) - (137,451) 272,245,043 - 272,245,043

Less:Magnums repurchased during the year 67,479,972 100,739 67,580,711 8,632,794 - 8,632,794

Outstanding at the end of the year 8,374,210,888 2,320,050,609 10,694,261,497 6,436,098,763 1,117,445,456 7,553,544,219

ISSUED AND SUBSCRIBED (in Units)

Outstanding Units at the beginning of the year 643,609,876 111,744,546 755,354,422 407,228,361 - 407,228,361

Add :Magnums reissued during the year 200,572,955 120,270,589 320,843,544 210,020,290 111,744,546 321,764,836

Add : Dividend reinvested during the year (13,745) - (13,745) 27,224,504 - 27,224,504

Less:Magnums repurchased during the year 6,747,997 10,074 6,758,071 863,279 - 863,279

Outstanding Units at the end of the year 837,421,089 232,005,061 1,069,426,150 643,609,876 111,744,546 755,354,422

As at As atM arch 31, 2009 M arch 31, 2008

Rupees Rupees

SCHEDULE B

RESERVES AND SURPLUS

MAGNUM PREMIUM RESERVE

Opening Balance 9,137,290,475 -Premium on magnums repurchased / reissued during the year (net) 3,222,924,009 15,055,435,999

Add/ (Less): Amount transferred from/ (to) Equalisation Reserve - (5,918,145,524)

Closing Balance 12,360,214,484 9,137,290,475

GENERAL RESERVE

Opening Balance 10,407,474,637 10,407,474,637

Closing Balance 10,407,474,637 10,407,474,637

EQUALISATION RESERVE

Additon/ (deletion) on magnums repurchased / reissued during the year (net) 3,555,315,304 5,918,145,524

Add/ (Less): Amount transferred from/ (to) Revenue Account (3,555,315,304) (5,918,145,524)

Closing Balance - -

REVENUE ACCOUNT - 1,217,040,636

Tot al 22,767,689,121 20,761,805,748

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As at As atM arch 31, 2009 M arch 31, 2008

Rupees Rupees

SCHEDULE C

CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES

Management fees payable 6,049,268 -

Trusteeship fees payable 208,273 251,617

Magnum repurchases/ redemption payable 10,978,343 6,075,250

Contract for purchase of investments 607,346,182 142,649,024

Bank account overdrawn as per books 412,391 79,740

Amount payable to other schemes 1,388,312 -

Unclaimed distributed Income 102,495,275 158,265,285

Other liabilities 109,493,984 184,159,946

Tot al 838,372,028 491,480,862

SCHEDULE D

INVESTMENTS(i) Listed

Equity shares 22,346,997,266 26,065,366,307

Equity linked instruments 11,317,704 25,627,819(ii) Securities awaiting listing

Equity shares - 917,726

(iii) Unlisted securiti es

Non convertible debentures/ bonds 250,000,000 -

(iv) Commercial Paper 1,959,034,300 2,385,662,054

(v) Certificate of Deposits 1,909,473,214 2,461,873,056

Tot al 26,476,822,484 30,939,446,962

NOTEThe investm ents are net of appreciation/ (depreciation) in(i) Listed

Equity shares (9,081,447,444) 4,089,285,954Equity linked instruments (25,614,524) 1,424,841(ii) Securities awaiting listing

Equity shares - 6

Total Appreciat ion - 4,090,710,801

(Total Depreciat ion) (9,107,061,968) -

SCHEDULE E

DEPOSITS

Deposits with Scheduled banks 500,000,000 -

Tot al 500,000,000 -

Out of the above, deposit for derivative margin - -

SCHEDULE F

OTHER CURRENT ASSETS

Balances with banks in current accounts 357,357,459 511,472,980

Placem ent under Co llateralised Bo rrow ing and Lending Ob ligation/ Reverse Repo Lend ing 1,019,548,087 150, 596,558

Outstanding and accrued income 9,244,600 2,416,182

Application money receivable 692,725,107 1,105,897,737

Share Application money, pending allotment - 143,100,000

Contract for sale of investments - 6,709,533

Amount receivable from AMC 564,863 35,763,593

Amount receivable from Other Scheme 1,344,479 522,500

Other current assets 120,456 1,615,585

Tot al 2,080,905,051 1,958,094,668

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SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2009 AND THE REVENUE

ACCOUNT FOR THE YEAR ENDED ON THAT DATE

SCHEDULE G : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

A. BACKGROUN D

SBI Mutual Fund Magnum Tax Gain Scheme, 1993 (The scheme) was launched on February 24, 1993 as a close ended scheme.

The Objective of the Scheme is to provide investors capital appreciation through investment of at least 80 percent of its corpus in, inter alia, equityshares and convertible debentures. The Scheme has been approved as a tax saving scheme to provide tax benefit under Section 88 C of the Income-tax Act, 1961 for initial investments up to Rs.100,000.

Investment in this scheme would be subject to statutory lock-in-period 3 years from the date of investment to avail section 80C benefit.

The Scheme was initially launched for a period o f ten years ending March 31, 2003. By its not ification number S.O.1092 (E) dated December 22, 1998,the ministry of Finance, Government of India permit ted a mutual fund t o operate an open ended equity linked saving plan. Accordingly, on May 22, 1999,the Board of Trustee (The Trustees) of SBI Mutual Fund (The Fund) approved the conversion o f the Scheme into an open ended load scheme with effectfrom November 11, 1999.

The SBI Mutual Fund Trustee Company Private Limited (The Trustees) of SBI Mutual Fund (The Fund) has appointed SBI Funds Management PrivateLimited (The AMC), a subsidiary of the State Bank of India (SBI), to m anage the Funds affairs and operate its schemes. SBI is the main banker to theFunds schemes.

B. SIGNIFICANT ACCOUNTING POLICIES

1. The financial statements are prepared under the histor ical cost convention and on the accrual basis as modif ied for i nvestments which are marked-to market.

2. Income Recognit ion

a. Dividend income is accrued on ex-dividend date.

b. Profit or loss on sale of investments/square off of derivative contract/inter scheme transfer is recognised on trade date except in respect ofinter scheme investments, which is recognised on the next working day. The cost of investments sold is determined on weighted averagecost basis.

c. Unrealised appreciation/depreciation, on m arking the investments and derivative contracts to m arket is recognised on the balance sheet dateand accordingly reckoned for determination of net surplus/deficit for the period.

d. Interest on interest bearing and other fixed income investments is recognised on a day to day basis as it earned. On purchase of suchinvestments, interest paid for the period from the last interest due date up to the date of purchase is not treated as a cost of purchase but istreated as interest recoverable. Similarly, interest received at the time of sale for the period from the last interest due date up to the date ofsale is not treated as part of sale value but is treated as interest recovered.

e. Where interest on investment in fixed income securities has not been received for a period of one quarter beyond the due date, no furtherincome is accrued on such investments and the interest previously accrued is fully provided for.

f. Other income of miscellaneous nature is accounted for when there is certainty of collection.3. Expenses

a. All expenses are accounted on an accrual basis.

b. Expenses not identifiable with any particular scheme are allocated to the schemes in a systematic manner.

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

4. Deferred Revenue Expenditure

In respect of open ended schemes launched prior to April 4, 2006 and close ended schemes launched prior to January 31, 2008, the initial issueexpenses borne by the Scheme are treated as Deferred Revenue Expenditure and is amortised on a straight line basis over a period of notexceeding five years for open ended schemes and over the tenor of scheme in respect of close ended scheme from the commencement of thescheme. In case of repurchase of Magnums, the propo rtionate share of unamortised deferred revenue expenditure is recovered fro m the Magnumholder. No initial issue expenses are borne by the scheme in respect of schemes launched after these dates.

5. Invest ment s

a. Investments are accounted on trade date except for inter scheme investments, which are accounted on the next wo rking day and off markettransactions including subscriptions are accounted when scheme obtains the enforceable Obligation/right.

b. Cost of investments includes brokerage, stamps fees, transaction charges, Securities Transaction Tax and any other charge customarilyincluded in the brokers note except in the case of derivative contracts, where such cost is charged off to revenue as incurred. The cost is netof front-end fees and incentives. In case of devolvement, the cost is net of underwriting commission earned.

c. Rights entitlements are recognised on ex-right dates.

d. Bonus entitlements are recognised on ex-bonus dates.

6. Computation of Net Asset Value

The Net Asset Value (NAV) of the Magnums is determined by div iding the net assets, including (a) investments recognised and valued as per theaccounting policies and (b) unamortised deferred revenue expenditure relating to initial issue expenses, by the number of outstanding magnumson the valuation date.

7. Portfolio Valuation for NAV computation

a. Valuation for Performing Investments:

i. For the purpose of the financial statements, the Fund marks all investments to market and carries investments in the Balance Sheet atthe market value.

ii . Securities other than Central Government Securities, which have been traded during the period of thirty days prior to the valuation date

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in case of Equity shares or on the valuation date in case of debt securities, are stated at the closing prices quoted on the stock exchangewhere the securities are principally traded on the valuation date or the last trading day before the valuation date as may be applicable.

Securities under dispute are valued at Re 1 per company.iii . Thinly traded/Non-traded/ Unlisted shares are valued in good faith by the Asset Management Company in accordance with guidelines

issued by the Securities and Exchange Board of India (SEBI).

iv. Thinly traded/ Non-traded Non-Government Debt Securities of up to 182 days of residual maturity are valued on the basis of amortisation(Cost plus accrued interest plus difference between the redemption value and cost, spread uniformly over the remaining maturity) asprescribed by SEBI. Securities acquired with residual maturity of over 182 days is also valued on the basis of amortisation after theresidual maturity o f securities on valuation date is 182 days or less except that the valuation as on the last valuation date before 182 daysis substituted instead of cost.

v. Thinly traded/ Non-traded Non-Government Debt Securities of over 182 days to residual maturity are valued in good faith in accordancewith SEBI guidelines. The valuation of non-traded debt securities is on comparative yield to maturity basis with appropriate creditspread, illiquidity discount/mark up plus discretionary mark up/discount; wherein the benchmark yields and matrix of credit spreads asprovided by an independent agency approved by Association of Mutual Funds in India (AMFI) is used.

vi. Traded/ Thinly traded/ Non-traded Central Government securities are valued based on prices released by an independent agencyapproved by AMFI.

vii . Derivative contracts are marked to market and appreciation/depreciation on marking to market is treated as unrealised appreciation/depreciation, as the case may be.

b. An investment is regarded as non-performing, if interest/principal amount has not been received or has remained outstanding for one quarterfrom the day such income/instalment has fallen due.

c. Provision for non-performing investment is made three months after such investment has been classified as non-performing and at the ratesprescribed by the SEBI. The scheme commences provision after classification as non performing investment in such a manner that theprovision prescribed by SEBI is available on the day, when such provision is required to be made as per SEBI guidelines.

d. In accordance with the Guidance Note on Accounting for Investments in the financial statements of Mutual Funds issued by the Institute ofChartered Accountants of India (pursuant to the Eleventh Schedule of the SEBI (Mutual Funds) Regulations 1996), net unrealised appreciationor depreciation in value of investments is determined separately for each category of investment.

e. The change in net depreciation/appreciation category wise, if any, is recognised in the Revenue Account. The change in net appreciation, ifany, is transferred to/from the Unrealised Appreciation in value of investments shown as part of Magnum holders fund.

8. Income Equal isat ion

a. The purpose of equalisation reserve is to maintain the per magnum amount of plans share of the Schemes undistributed income earnedduring the accounting period, so that continuing magnum holders share of undistributed income remains unchanged on reissue orrepurchase of magnums under that Plan.

b. In case of an open ended scheme, when magnums are repurchased / reissued by the Scheme, an appropriate part of the repurchase / reissueprice is adjusted against the Magnum Premium Reserve of the scheme after an appropriate part of the reissue proceeds and repurchase

consideration being credited or debited respectively to the Equalisation Account. At the balance sheet date, the balance in the equalisationaccount is transferred to the revenue account.

9. Reissue / Repurchase of Magnums

When magnums are reissued / repurchased, after considering the income equalisation as above, the difference between the reissue/repurchaseprice and the face value of the magnum, is transferred to magnum premium reserve.

10. Prov isions

Provision is made by charge to the Revenue Account, in respect of:

a. Non Performing Investment as per the Guidelines prescribed by SEBI.

b. Interest outstanding for more than one quarter beyond the due date.

c. Securities where the certificates are not received / traceable for a protracted period.

d. Dividend income, which has not been received for a period of twelve months from the due date.

e. Assets other than investments, which in the opinion of the Trustee have suffered substantial impairment in their value.

11. Entry and Exit Load

Entry load charged at the time of initial issue is utilised towards meeting distribution and marketing expenses. Load charged at the time ofrepurchase and reissue of magnums is utilised towards meeting d istribution and marketing expenses, namely, commission to agents and publicity

expenses. Any surplus/ unutilised amount of Load collected are carried forward as liability for utilisation in subsequent periods unless the sameis considered excess by the Trustee. Such excess income is credited to other income.

C. NOTES TO ACCOUNTS

Amount in Rupees in Lakhs unless and otherw ise stated

1. Net Asset Value per Magnum (NAV):

NAV per magnum are as under:

Opt ions As at 31st March 2009 As at 31st March 2008

NAV(Rs.) Magnums Dividend(Rs.) NAV(Rs.) Magnums Dividend(Rs.)

Growth 30.91 23,20,05,061 N.A. 51.00 11,17,44,546 N.A.

Dividend 25.12 83,74,21,089 Nil 41.50 64,36,09,876 11.00

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2. Invest ment s

a. The investments of the Scheme are held in the custody of the Schemes 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.

b. Cost and Market/Fair value of investments are as under:

Investments As at 31st March 2009 As at 31st March 2008

Cost Market Value Cost Market Value

Equity & equity related Instruments 3,14,653.77 2,23,583.15 2,20,012.01 2,60,919. 12

Non Convertible Debentures 2,500.00 2,500.00 Nil Nil

Commercial Paper 19,590.34 19,590.34 23,856.62 23,856.62

Certificate of Deposits 19,094.73 19,094.73 24,618.73 24,618.73

c. The aggregate values of thinly traded, non traded and unlisted securities as at the year end, and valued on the basis of fair value computationare as under:

As at 31st March 2009 As at 31st March 2008

Cost Fair Value Cost Fair Value

41,185.07 41,185.07 48,484.53 48,484.53

d. The open position in derivative products is as under:


Market Value % of Net assets Market Value % of Net assets

Nil Nil Nil Nil

e. The open position of securities borrowed or lent by the scheme is as under:


Securit ies borrow ed Securit ies lent Securit ies borrow ed Securit ies lent

Nil Nil Nil Nil

f. The details of non performing investments is as under:

Investment category As at 31st March 2009 As at 31st March 2008

Out st anding Provision Made Book Value Out st anding Provision Made Book Value

Equity Nil Nil Nil Nil Nil Nil

g. The details of unrealised appreciation and depreciation is as under:


Amount % of net assets Amount % of net assets

(91,070.62) 32.28 40,907.11 12.62

3. Purchase/Sale of Investments:

The aggregate cost of purchases and sale value including redemption of investments during the year and these amounts as a percentage of

average daily net assets are as follows:

Current Year Previous Year

Purchase % of Avg Sale % of Avg Purchase % of Avg Sale % of Avg

Daily Net Daily Net Daily Net Daily NetAsset Value Asset Value Asset Value Asset Value

628,626.52 223.20 541,213.73 192.16 9,67,264.88 353.77 7,93,237.03 290.12

4. Management and Trusteeship fees:

i. In terms of the Offer Document, the scheme has accrued Management fees payable to the AMC and Trusteeship Fee payable to the Trusteeas a percentage of schemes average daily net assets, excluding Investments, if any, made (a) by AMC in the scheme, (b) by the scheme in anyother Mutual fund scheme, (c) in short term fixed deposits w ith banks, in case of debt schemes and unamort ized port ion of Deferred RevenueExpenditure (if any).

ii . The scheme has accrued Trusteeship fees payable to SBI Mutual Fund Trustee Co. Pvt. Ltd. at the rate of 0.01% (exclusive of service tax) ofthe Schemes average daily net assets, computed in same manner as in (i) above.

ii i. The basis of management fees and aggregate management fees (exclusive of service tax) payable is as under:

Management fees % p.a. Management fees Trusteeship fees Average Net Assets as

(Max. & Min. rate) for the year for the year stated in (i) above

Cur rent Year Pr ev io us Year Cur rent Year Previ ous Year Cur rent Year Pr ev io us Year Cur rent Year Pr evi ous Year

0.00 to 1.25 0.00 to 0.75 1,953.41 1,615.36 31.28 27.34 2,78,857.57 2,73,374.59

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5 . Segment Informat ion

Each Scheme is treated as one segment.

6. Related Party Transactions

(As identified by the management and relied upon by the auditors)

Related Parties

a. Sponsor: State Bank of India

b. Trustee: SBI Mutual Fund Trustee Company Private Limited, a subsidiary of the sponsor.

c. Asset Management Company: SBI Funds Management Private Limited.

d. Shareholders holding substantial interest in the Asset Management Co.:

i . State Bank of India

ii. Socit Gnral Asset Management Company.

e. Subsidiaries of Major Shareholders of AMC with whom transacted

i. State Bank of Bikaner & Jaipur

i i . State Bank of Hyderabad

i i i . State Bank of Indore

iv. State Bank of Mysore

v. State Bank of Patiala

vi. State Bank of Saurashtra (up to 13th

August 2008)vii. State Bank of Travancore

viii. SBI Commercial and International Bank Ltd.

ix. SBI Factors & Commercial Services Pvt. Ltd.

x. SBI Capital Markets Ltd.

x i. SBI DFHI Ltd.

xii. SBI CAP Securities Ltd.

xii i. SBI Cards & Payment Services Pvt. Ltd.

xiv. SBI Life Insurance Company Ltd.

xv. SG Asia Equities Pvt. Ltd.

f. Entities where Major Shareholders of AMC has substantial interest and with whom transacted

i. Clearing Corporation of India Ltd.

The Scheme has entered into transactions with related parties which are required to be disclosed in accordance with Accounting Standard 18Related Party Disclosures.

a. The Fund has not dealt in any securities through brokers associated with any of the Major Shareholders in excess of the limit of 5% of theaggregate sale and purchase of securities made by the Mutual Fund in any block of three months.

b. The transactions entered into during the year with the related parties are as under:Type of Transact ion Current Year Previous year

AMC Major Shareholders AMC Major Shareholdersof AMC and their of AMC and their

Subsidiaries Subsidiaries

Brokerage on issue of Magnums Nil 651.13 Nil 1,180.35

Purchase of securities Nil 3,036.59 Nil 24,097.91

Sale of securities Nil 3,037.26 Nil 24,109.63

Brokerage on investments Nil 15.42 Nil 10.32

Bank Charges Nil 22.05 Nil 125.57

Interest received Nil 123.78 Nil 632.11

Management Fee 1,953.41 N.A. 1,615.36 N.A.

Trusteeship Fee N.A. 31.28 N.A. 27.34

c. The balances with related parties as on the balance sheet date is as under:

Type of Transact ion Current Year Previous year

AMC Major Shareholders AMC Major Shareholdersof AMC and their of AMC and their

Subsidiaries Subsidiaries

Investment in Magnums of Scheme Nil 0.25 Nil 0.42

Investment in Equity Nil 13,028.55 Nil 4,556.72

Other receivable 5.65 Nil 357.64 Nil

Other payable 60.49 2.08 Nil 2.52

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d. Major Shareholders of AMC and its subsidiaries hold in excess of 5% of the net assets in the following Schemes of the Fund:

Current Year Previous Year

Magnum Index Fund - Growth SBI One India Fund - Dividend Plan

Magnum Income Fund - FRST - Dividend Magnum Monthly Income Plan Floater - Growth

Magnum Insta Cash - Daily Dividend SDFS - 13 Months - 5 - Institutional - Growth

MMIP Floater - Growth SDFS - 13 Months - 6 - Institutional - Growth

SBI One India Fund - Dividend SBI Premier Liquid Fund - Institutional - Growth

SHF- Ultra Short Term Fund - Inst itut ional Plan Growth SDFS - 15 Months - Growth

SDFS-18 Months - 2 - (Oct 07) - Institutional Growth SBI-SHF - USTF (previously known as SBI-SHF-LPF) - Institutional - Growth

Magnum Index Fund - Growth

e. The aggregate value of investments made by Major Shareholders and its subsidiaries in the Fund is 1,27,000.19 (Previous Years: 1,31,770.23).

f. The aggregate value of investments made by all the schemes of the fund in Major Shareholders of AMC or its subsidiaries are as follows:

Issuer and inst rument Under th is scheme All schemes of the Fund

As at 31-03-09 As at 31-03-08 As at 31-03-09 As at 31-03-08

Equity shares of State Bank of India 13,028.55 4,556.72 32,137.44 23,241.14Debt Security of State Bank of Hyderabad Nil Nil Nil 483.85

Total 13,028.55 4,556.72 32,137.44 23,724.99

g. Detail of Investments held by the AMC as on 31st March 2009 in various schemes of the fund is as under:

Scheme Name AUM

Magnum Insta Cash - Daily Dividend 2,209.29

SDFS - 13 Months - 8 - Institutional growth 856.28

Detail of Investments held by the AMC as on 31st March 2008 in various Schemes of the Fund is as under:

Scheme Name AUM

SDFS - 13 Months (March 07) - G 446.77

SDFS - 13 Months - 5 - (Aug 07) - IG 631.59

SDFS - 13 Months - 6 - (14-Dec-07) - IG 818.14

SBI Arbitrage Opportunities - G 824.40

SDFS - 15 Months - 3 - (Feb 07) - G 1,944.57

SDFS - 90 Days-20 - (26-Feb-08) - D 2,057.59

h. Subscription by the schemes (excluding secondary market purchases) in the issues lead managed by an associate company, SBI CapitalMarkets Limited, during the year ended 31st March 2009 is as under:

Name of the issuer Inst rument Name of the Scheme Amount

Nil Nil Nil Nil

Subscription by the schemes (excluding secondary market purchases) in the issues lead managed by an associate company, SBI CapitalMarkets Limited, during the year ended 31st March 2008 is as under:


DLF Ltd. Equity SBI Infrastructure Fund Series- I 1,540.00SBI Blue Chip Fund 385.00

SBI One India Fund 770.00Mundra Port & Special Economic Zone Ltd. Equity Magnum Multiplier Plus Scheme 1,067.00

Magnum Equity Fund 448.00SBI Infrastructure Fund Series- I 3,301.00SBI One India Fund 1,920.00MSFU-Contra 2,356.00SBI Blue Chip Fund 1,596.00Magnum Taxgain Scheme 3,154.00MSFU-Emerging Business Fund 135.00Magnum Multicap Fund 1,157.00Magnum Balanced Fund 399.00Magnum Monthly Income Plan 38.00Magnum Monthly Income Plan Floater 6.00Magnum Children Benefit Plan 8.00Magnum Income Plus- Investment 3.00

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BGR Energy System Ltd. Equity Magnum Global Fund 1,118.00MSFU-Contra 1,118.00Magnum Tax gain Scheme 1,118.00Magnum Monthly income Plan 5.00Magnum Monthly Income Plan Floater 1.00Magnum Children Benefit Plan 1.00Magnum Income Plus- Investment 0.00

Rural Electrification Corporation Ltd. Equity Magnum Multiplier Plus Scheme 538.00Magnum Tax gain Scheme 1,611.00Magnum Balanced Fund 397.00MSFU- Contra 1,236.00Magnum Monthly Income Plan 35.00Magnum Children Benefit Plan 8.00Magnum Monthly Income Plan Floater 5.00Magnum Income Plus- Investment 2.00

State Bank of India (Rights Issue) Equity Magnum Taxgain Scheme 86.12Magnum Balanced Fund 14.35Magnum Sector Funds Umbrella - Contra 121.93Magnum Index Fund 0.94Magnum Children Benefit Plan 0.19Magnum Income Plus - Investment 0.10Magnum Investment NRI Fund - FAP 0.63Magnum Monthly Income Plan 0.89Magnum Monthly Income Plan Floater 0.03SBI Blue Chip Fund 65.64SBI One India Fund 41.84SBI Infrastructure Fund-Series I 121.43

Tot al 25,930.09

7. Investors holding more than 5% of the net assets of the Scheme as on the Balance Sheet Date are as under:

Name of Magnum holder No. of Magnums held % of total holding

Nil Nil Nil

Investors holding more than 5% of the net assets of the Scheme as on the Previous Years Balance Sheet Date are as under:

Name of Magnum holder No. of Magnums held % of total holding

Nil Nil Nil

8. Port folio

Industry wise investment portfolio of the scheme is given in Annexure A.

9. Statement of Investments made by all the Schemes of the Fund in Companies or their Subsidiaries where the Companies hold more than 5% ofthe Magnums in any scheme as on the balance sheet date is given in Annexure B.

10. Investors holding Magnums more than 25% of Net Asset Value in the Scheme as on the Balance Sheet Date are as under:

Name of Magnum holder % of Total Holding

Nil Nil

Investors holding more than 25% of Net Asset Value in the Scheme as on the Previous Years Balance Sheet Date are as under:

Name of Magnum holder % of Total Holding

Nil Nil

11. Provision for taxation

No provision for taxation has been made as the Scheme qualifies as a recognised mutual fund under section 10(23D) of the Income-tax Act, 1961and the Direct Tax Laws (Amendment) Act, 1988. Accordingly, where tax has been deducted at source on the investment income, the amountrecoverable has been appropriately accounted for.

12. Income and Expenditure

The total income (including profit on sale/redemption of investments and profit on inter scheme transfers and write back of provisions) for the yearas a percentage of the schemes average net assets and the to tal expenditure (including loss on sale/redemption of investments and loss on inter

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scheme transfers, net changes in unrealised depreciation in value of investments and other provisions) for the year as a percentage of theschemes average net assets is as under:

Income Expenditure

Amount % of average Daily Amount % of average Dailynet asset (Annualised) net asset (Annualised)

Current Year 6,528.28 2.32 106,780.97 37.91

Previous Year 19,435.42 7.11 5,089.33 1.86

13. Items of expenses in excess of 10% of tot al expenses:

Nature of expenditure Current Year % Previous Year %

Management Fees 37.48 31.74

Registrar Fees 20.36 26.14

Commission to agents (net of load utilised) 32.97 31.78

14. Contingent Liabi li ty

Contingent liability in respect of Underwriting Comm itments, Uncalled liability on p artly paid shares and other comm itments are Nil (Previous YearNil).

15. The details of unclaimed redemption amount and dividend are as follows: (as compiled by the management and relied upon by the auditors)

Unclaimed Redempt ion Unclaimed dividend

No. of Magnum Amount No. of Magnum Amount

Holders payable Holders payable

Current Year 484 45.69 37,211 531.99

Previous Year 96 10.75 5,747 28.24

16. Details of borrowings as on the balance sheet date are as under:

Amount Interest rate Source Security Extent of security

Nil Nil Nil Nil Nil

Details of borrowings as on the previous balance sheet date are as under:

Amount Interest rate Source Security Extent of security

Nil Nil Nil Nil Nil

17. The process of reconciliation of Magnums and the amount receivable/received on issue/reissue is under progress. Further, the process ofreconciliation of dividend/redemption payable to the Magnum holders is also under progress. Appropriate adjustments are made as and when theMagnums/amount is reconciled and in respect of items pending reconciliation, adjustments, if any, would be made as and when such reconciliationtakes place. As on the balance sheet date (status as on 30th June 2009), the net un-reconciled amount in respect of amount receivable on issue/

reissue is 5.82 and amount payable in respect of dividend/ redemption is 36.69. The management is confident that the impact of such un-reconciled amount would not be material.

18. During the year, the Fund has changed the manner of reporting of unrealised appreciation in the value of investments to fall in line with the formatprescribed by the SEBI for abridged audited accounts. The change in the unrealised appreciation in the value of investments is now credited toRevenue Account, which was hitherto taken directly to Unrealised appreciation in the value of investments. This change has resulted into netdeficit for the year being higher by 40,907.11 However, it has no impact either on the Magnum holders fund or Net Asset Value.

19. Previous year comparatives

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

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ANNEXURE A: SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRYWISE CLASSIFICATION

Presented below are the industrywise and companywise classification for each category of the Schemes investments.

Industry and Company Part iculars Amount Percentage to(Rs.) investment

category

Listed Securities:

Equity SharesBANKS 3,206,936,648 14.35State Bank Of India 1,302,854,818 5.83HDFC Bank Ltd. 777,098,379 3.48ICICI Bank Ltd. 690,023,268 3.08Axis Bank Ltd. 319,526,030 1.43Kotak Mahindra Bank Ltd. 117,434,153 0.53

PETROLEUM PRODUCTS 2,266,234,300 10.14Reliance Industries Ltd. 1,450,893,696 6.49Bharat Petroleum Corporation Ltd. 491,182,109 2.20Indian Oil Corporation Ltd. 324,158,496 1.45

POWER 1,868,796,384 8.36

NTPC Ltd. 788,935,242 3.53Tata Power Co. Ltd. 687,636,591 3.08CESC Ltd. 254,364,299 1.14KEC International Ltd. 92,423,745 0.41Reliance Power Ltd. 45,436,508 0.20

INDUSTRIAL CAPITAL GOODS 1,799,490,391 8.05Bharat Heavy Electricals Ltd. 849,708,028 3.80Crompton Greaves Ltd. 375,609,491 1.68Thermax Ltd. 212,675,079 0.95Siemens Ltd. 175,481,961 0.79Praj Industries Ltd. 118,117,024 0.53Suzlon Energy Ltd. 67,898,809 0.30

CEMENT 1,762,845,236 7.89ACC Ltd. 486,980,925 2.18Jaiprakash Associates Ltd. 346,494,788 1.55Century Textile & Industries Ltd. 270,326,808 1.22Shree Cement Ltd. 237,882,240 1.06Grasim Industries Ltd. 217,137,974 0.97

India Cements Ltd. 169,520,000 0.76Mysore Cements Ltd. 34,502,500 0.15

FERROUS METALS 1,731,553,843 7.75Jindal Steel & Power Ltd. 770,033,744 3.45Tata Steel Ltd. 335,607,166 1.50Steel Authority Of India Ltd. 309,919,988 1.39Welspun Gujarat Stahl Rohren Ltd. 218,710,872 0.98Maharashtra Seamless Ltd. 69,348,474 0.31Man Industries (India) Ltd. 27,933,600 0.12

TELECOM - SERVICES 1,133,977,087 5.07Bharti Airtel Ltd. 784,127,400 3.51Reliance Communications Ltd. 349,849,687 1.56

FINANCE 1,127,065,978 5.04Housing Development Finance Corporation Ltd. 801,011,232 3.58Infrastructure Development Finance Co. Ltd. 324,492,148 1.45Summit Securities Ltd. 1,562,598 0.01

CONSTRUCTION PROJECT 1,005,778,470 4.50Larsen & Toubro Ltd. 622,505,288 2.78

GMR Infrastructure Ltd. 303,680,000 1.36Punj Lloyd Ltd. 79,593,183 0.36

OIL 958,665,321 4.29Oil & Natural Gas Corporation Ltd. 958,665,321 4.29

CONSUMER NON DURABLES 944,870,302 4.23ITC Ltd. 402,299,990 1.80Nestle India Ltd. 301,518,259 1.35Asian Paints Ltd. 241,052,052 1.08

SOFTWARE 839,663,208 3.76Infosys Technologies Ltd. 568,267,969 2.54Tata Consultancy Services Ltd. 216,000,000 0.97KPIT Cummins Infosystems Ltd. 48,949,120 0.22Subex Ltd. 6,446,119 0.03

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Industry and Company Part iculars Amount Percentage to(Rs.) investment

categoryPHARMACEUTICALS 763,685,979 3.42

Lupin Ltd. 307,904,235 1.38Ranbaxy Laboratories Ltd. 188,024,890 0.84Dr. Reddys Laboratories Ltd. 156,428,104 0.70Opto Circuits (I) Ltd. 111,328,750 0.50

AUTO 493,614,245 2.21Mahindra & Mahindra Ltd. 184,664,846 0.83Tata Motors Ltd. 178,733,373 0.80Maruti Suzuki India Ltd. 130,216,025 0.58

GAS 488,591,594 2.19GAIL (India) Ltd. 488,591,594 2.19

NON - FERROUS METALS 443,419,797 1.98Sterlite Industries (India) Ltd. 443,419,797 1.98

PESTICIDES 276,456,550 1.24United Phosphorous Ltd. 276,456,550 1.24

CONSTRUCTION 269,938,212 1.21

IVRCL Infrastructures & Projects Ltd. 165,897,518 0.74Simplex Infrastructures Ltd. 85,231,848 0.38Ansal Properties & Infrastructure Ltd. 10,281,396 0.05Brigade Enterprises Ltd. 8,527,450 0.04

INDUSTRIAL PRODUCTS 255,947,262 1.15SKF India Ltd. 136,639,271 0.61Sintex Industries Ltd. 119,307,992 0.53

DIVERSIFIED 200,914,554 0.90Hindustan Unilever Ltd. 200,914,554 0.90

AUTO ANCILLARIES 144,412,932 0.64Bosch Ltd. 107,387,000 0.48Amtek Auto Ltd. 18,525,000 0.08Apollo Tyres Ltd. 18,500,932 0.08

TRANSPORTATION 140,706,645 0.63Blue Dart Express Ltd. 85,193,490 0.38Mundra Port and Special Economic Zone Ltd. 55,513,155 0.25

CONSUMER DURABLES 114,764,544 0.51

Havells India Ltd. 114,764,544 0.51PAPER 66,742,786 0.30Ballarpur Industries Ltd. 66,742,786 0.30

CHEMICALS 41,925,000 0.19Atul Ltd. 41,925,000 0.19

Total Equity Shares (i) 22,346,997,266 100.00

Equity Linked Instrum ents

FERROUS METALS 11,317,704 100.00Tata Steel Ltd. 11,317,704 100.00

Total Equity Linked Instrument s (ii) 11,317,704 100.00

Total Listed Securit ies (A) 22,358,314,969

Unlisted Securities

Other Debentures & Bonds

CONSTRUCTION 250,000,000 100.00Unitech Ltd. 250,000,000 100.00 **

Total Other Debentures & Bonds (i) 250,000,000 100.00

Total Unlisted Securit ies (B) 250,000,000Commercial Paper

FINANCE 1,959,034,300 100.00Reliance Capital Ltd. 1,959,034,300 100.00

Total Commercial Paper (C) 1,959,034,300 100.00

Certi ficate of Deposits

BANKS 1,909,473,214 100.00UCO Bank 494,529,416 25.90Union Bank 488,706,317 25.59Indian Bank 488,552,127 25.59Dena Bank 437,685,353 22.92

Total Cert ificate of Deposits (D) 1,909,473,214 100.00

Total Investments (A + B + C + D) 26,476,822,484

** Thinly Traded & Illiquid Shares

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Annexure B

Details of investments made in companies/subsidiary which have invested more than 5% of NAV of any scheme of SBI Mutual Fund during the yearended March 31, 2009

Company Name Scheme invested in Investment made by Schemes of SBI Mutual Fund in Company / Subsidiary

by the Company Name of Scheme Aggregate for Outstandingthe period as at M arch

under 31, 2009Regulation at Market/

25(11) Fairat cost value

(Rs. in Crores) (Rs. in Crores)

ACC LTD. SBI PREMIER LIQUID FUND MAGNUM COMMA FUND 1.59 -

MAGNUM EQUITY FUND 1.49 11.59

MAGNUM INDEX FUND 0.09 0.08

MAGNUM MULTICAP FUND 2.71 2.88

MAGNUM TAX GAIN SCHEME-93 21.96 48.70

SBI ARBITRAGE OPPORTUNITIES FUND 10.96 -

SBI BLUE CHIP FUND 11.44 -

SBI INFRASTRUCTURE FUND - SERIES - I 17.59 15.86

SBI TAX ADVANTAGE FUND - SERIES - I 3.01 5.48

ALLAHABAD BANK MAGNUM INSTA CASH FUND MAGNUM COMMA FUND 53.52 -

SBI SHORT HORIZON FUND- MAGNUM GILT FUND - LONG TERM PLAN 58.69 -ULTRA SHORT TERM FUND

MAGNUM INSTA CASH FUND 676.15 226.85

MAGNUM INSTA CASH FUND-LFP 21.99 15.64

MAGNUM MONTHLY INCOME PLAN - FLOATER 1.50 -

MAGNUM MULTIPLIER PLUS SCHEME - 1993 46.70 -

SBI DEBT FUND SERIES - 13 MONTHS - 10 93.06 93.06

SBI DEBT FUND SERIES - 13 MONTHS - 5 4.81 -SBI DEBT FUND SERIES - 13 MONTHS - 8 100.72 -

SBI DEBT FUND SERIES - 13 MONTHS - 9 93.51 93.51

SBI DEBT FUND SERIES - 30 DAYS - 3 195.26 -






SBI DEBT FUND SERIES - 180 D

Documents

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