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Dear Investor, The Indian equity market continued to remain volatile through the year 2010-11 though it ended

with gains. The BSE Sensex and S & P Nifty both ended the year with gains of 10.94% and 11.14% to close at 19445.22 and 5833.75 respectively. There was a record inflow from foreign investors into Indian equities in view of better growth prospects. However, the trend reversed in the third quarter as a spate of scams and macro concerns about inflation and growth dented the sentiments. The Reserve Bank of India continued towards the path of normalization of interest rates due to inflationary concerns. Despite the near term macro headwinds, the Indian economy is poised for higher growth given the structural factors like, favorable demographics, high savings rate and opportunities in infrastructure and outsourcing. SBI Mutual Fund continues to increase its investor base and now over 45 lakh investors have reposed their trust in us. Enclosed is the Abridged Annual Report for the year 2010-11 for your perusal. Equity as an asset class has always been looked upon by experts as an investment avenue for the long term. And investors who show patience can reap the benefits in the long run. Moreover, having a long term horizon always helps you stay on course for achieving your financial goals. The various upswings and downswings in the equity markets again go on to show the importance of investing in a disciplined manner. Systematic Investment Plan or SIP is perhaps, one useful tool which has helped millions of investors to invest their small savings every month and create a big corpus over the long run, with the help of cost averaging and the power of compounding. If you have not yet started your SIP then you may consider starting it with Magnum Equity Fund, a , large cap oriented equity fund. Besides, you may also consider investing in Magnum Global Fund, which is a predominantly mid cap fund and Magnum Sector Funds Umbrella Emerging Businesses Fund, which is a concentrated high-conviction portfolio, and hence, somewhat aggressive. These three funds have been performing well and you may consider making them a part of your equity portfolio. On the debt side, three funds from SBI Mutual Fund viz; Magnum InstaCash Fund Growth, SBI Premier Liquid Fund - Institutional Growth and SBI Short Horizon Debt Fund - Ultra Short Term Fund - Retail Growth were conferred CRISIL Mutual Fund Rank 1 recently for their superior return scores over the 1-year period ended 31st March, 2011. You may consider investing your short term surplus funds in these schemes. (CRISIL Mutual Fund Rank 1 refers to Very Good Performance and ranks within the Top 10 percentile of the schemes in the respective category). In our endeavor to provide innovative investment solutions to our investors, we introduced several products and customer service initiatives. During the year 2010 11, we launched several new schemes most of them being close ended debt schemes SBI Debt Fund Series (SDFS), with different maturities to suit investor appetite. Other than the SDFS, we launched SBI PSU Fund, an open ended equity scheme, investing in Public Sector Undertakings. We also launched SBI Capital Protection Oriented Fund Series II a five year close ended capital protection oriented fund, particularly suitable for conservative investors. I am pleased to inform you that our quarterly average AUM for the period January - March 2011 stands at Rs. 41,671 crores. We have also had a sizeable growth in assets during the year 2010 11, thanks to the support from all our investors. Let me take this opportunity to assure you that we would continue to offer innovative investment solutions to our investors. Its a pleasure to share with you that very recently we launched our new corporate website with a range of new sections, several useful tools and calculators and much more. Do visit our new website www.sbimf.com to explore these new sections and dont forget to write back few words as feedback to partnerforlife@sbimf.com. We conducted over 400 Investor Awareness Programmes across the country during the financial year so as to educate people about the benefits of investing in mutual funds. We shall continue to help more and more people learn about benefits of investing in mutual funds so as to help them achieve their financial objectives. I assure you that, we shall continue to maintain high standards for ourselves in the future, too. Lastly, I would also like to assure you of our commitment to provide unparalleled service to our investors and cater to your investment, servicing and information 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 customer.delight@sbimf.com with your queries. Alternatively, you can also visit your nearest SBI MF 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 provide better service to our valued investors. We also have been adding more distributors thereby strengthening our distribution network to offer our products through their network. I am sure that your trust and faith in us will earn rich dividends for you in future. Warm regards,

Deepak Chatterjee Managing Director

MAGNUM SECTOR FUNDS UMBRELLA REPORT OF THE BOARD OF DIRECTORS OF SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED FOR THE YEAR 2010-11
The Directors of SBI Mutual Fund Trustee Company Private Limited are pleased to present the Audited Accounts in respect of the schemes of SBI Mutual Fund for the year ended 31st March, 2011. The scheme-wise financial statements for the year 2010-11, are enclosed with the report of the auditors. The significant accounting policies through which the financial statements of the schemes are drawn and the explanatory notes to accounts of each of the schemes are also attached. The financial statements have been prepared as per the SEBI (Mutual Fund) Regulations 1996, in the manner required and exhibit true and fair view of the operating results.

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


Magnum FMCG Fund The scheme has generated a performance of 29.78% (31st March 2010 to 31st March 2011) as compared to a return of 27.02% for the BSE FMCG Index, its benchmark. The fund has outperformed the benchmark benefiting from positive active exposure to stocks like Glaxo Consumer, Zydus Wellness, United Breweries and negative active weight in Hindustan Unilever. Magnum IT Fund The scheme has generated a performance of 21.70% (31st March 2010 to 31st March 2011) as compared to a return of 25.02% for the BSE IT Index, its benchmark. Higher allocation to the Midcap segment as compared to the benchmark led to the underperformance of the fund. Magnum Pharma Fund The scheme has generated a performance of 16.29% (31st March 2010 to 31st March 2011) as compared to a return of 13.05% for the BSE Healthcare Index, its benchmark. The fund has outperformed the benchmark benefiting from positive active exposure to stocks like Cadila, Wyeth, Torrent Pharma, and negative active weight in Ranbaxy, Glenmark, Jubilant Life and Fortis. Magnum Contra Fund The scheme generated a return of (0.22)% (31st March 2010 to 31st March 2011) as compared to a return of 8.55% for its benchmark (BSE100). The fund has underperformed the benchmark due to its active underweight on Financials and IT and overweight on Energy and Consumers. Magnum Emerging Business Fund generated a performance of 13.7% (31st March 2010 to 31st March 2011) as compared to a return of 7.5% for the BSE500, its benchmark. The portfolio did well despite the under-performance of the mid cap space due to better stock selection, top attributors being Page Industries, Manappuram General Finance and Jubilant Foodworks Name of Scheme Magnum Sector Fund Umbrella - FMCG Benchmark : BSE FMCG Magnum Sector Fund Umbrella - IT Benchmark : BSE IT Magnum Sector Fund Umbrella - Pharma Benchmark : BSE-HC Dividend Benchmark : BSE-HC Magnum Sector Fund Umbrella - Contra Benchmark : BSE100 Dividend Benchmark : BSE100 Magnum Sector Fund Umbrella - Emerging Businesses Fund Benchmark : BSE 500 N.A. = Not Applicable Latest 6 Months (5.19) (3.32) 7.08 10.11 4.34 0.47 4.32 0.47 (11.19) (5.00) (11.17) (5.00) (8.62) (6.85) Latest 1 Year 29.78 27.02 21.70 25.02 16.29 13.05 16.29 13.05 (0.22) 8.55 (0.19) 8.55 13.65 7.48 Latest 3 Years 25.48 16.23 9.57 22.67 15.10 16.11 15.24 16.11 6.81 7.04 6.81 7.04 6.41 6.50 Latest 5 Years 13.21 10.21 7.81 10.19 4.11 9.31 4.17 9.31 11.50 11.32 11.51 11.32 7.49 10.48 Since Inception 12.52 9.34 13.80 14.93 17.87 11.40 15.90 14.09 22.86 19.78 25.61 15.52 23.45 20.11

FUTURE OUTLOOK: EQUITY OUTLOOK :


Indias equity market is going through a tough phase daunted by concerns of rising inflation, slowing economic growth, lack of structural reforms, corruption etc. While in the near term, an upsurge in global risk aversion due to fears about sovereign debt risk and weakness in economic activity pose challenges for our markets, we believe the underlying strength of Indian economy would keep the downside in our equity markets protected. Markets are neither cheap nor expensive, but face multiple headwinds as of now. The markets would keenly be watching progress of monsoon which probably has never been as critical as it is this year. Poor monsoon could not only make the inflationary situation worse and complicate problems for the RBI; it would put tremendous pressure on government finances as subsidy bill mounts. So far, the indications are that monsoon is likely to be normal this year. On the rising inflation front we feel that RBI could take stronger policy action rather than the calibrated approach followed in FY11. We feel that softening of commodity prices, if any, could be a silver lining in addressing the inflation concern. Bounce back in dollar, tight monetary policies pursued by emerging economies, end of QE II by US Fed and slowing growth momentum could take the sheen off commodity markets. Higher inflation has not been able to dent consumer spending as combined effect of rising wages and wealth effect from increase in equity, real estate and bullion prices have offset the impact. There is a structural shift in economy as GDP is likely to cross $ 2 trillion mark with per capital GDP likely to touch a level of $ 1700. Broadly speaking, in an inflationary environment, preference would be for those companies which have visibility on growth and higher ability to pass on increased costs. Further, the census data released some time back is very encouraging. We believe the consumption boom in India has just begun and has a very long way to go. There would be immense opportunities for investors across several segments.

Abridged Annual Report 2010-11

MAGNUM SECTOR FUNDS UMBRELLA


Over the next few months, as markets deal with uncertainties on the global as well as domestic front, investors should take advantage of the volatility and increase allocation to equities in a gradual manner. We have strengthened the fund management team, tightened our internal templates and have taken various other measures to ensure delivering superior risk-adjusted returns on a consistent basis.

FIXED INCOME OUTLOOK & STRATEGY: Long term funds


We continue to stay on a low duration strategy, with moderate positions in the long term funds and MIPs on account of:
I

The March inflation number at close to 9% which was above 1% from the RBI guidance and elevated non-food manufacturing inflation at 7% had warranted a more aggressive monetary action from RBI. Elevated commodity prices could pose a major challenge to contain inflationary expectations & also upset the Fiscal calculations. Fresh supply of government bonds to the tune of around Rs.12,000 crs every week in the new financial year is expected to put pressure on yields The market yields broadly have an upward bias, but remain prone to sharp movements in either direction driven by global movements, especially pertaining to commodities. We would continue with our trading strategy with moderately invested positions in government bonds. MIPs and Balanced Fund would focus to have a core portfolio of corporate credit and CDs as spreads on high quality credit curves in the 1-3 yr segment are likely to remain attractive and provide high accrual and roll down.

I I I

I I

Short term funds/ Money market funds


I I

The Liquid and Ultra Short Term funds had been fully invested as on 31st March,2011 with investments predominantly in CDs. The mark to market exposure in Ultra Short would be below 5% and in the near term, the preference would continue to be within the 3 month segment. The near term strategy for Liquid/ Ultra would be guided by the near term bearish view on short term rates and the regulatory guidelines which could impact flows into the funds. Money market funds would focus on generating consistent returns and would strive to contain volatility. Particular emphasis will be laid on security/ portfolio liquidity and credit quality.

Operations of the schemes


SBI Mutual Fund manages 27 open ended and 8 close ended schemes, out of which 15 are equity schemes (1 close ended),1 balance scheme,2 liquid schemes,1 gilt scheme,15 debt schemes (7 close ended) and 1 Gold ETF scheme. Out of 7 closed ended schemes 2 were redeemed during the year. SBI Mutual Fund continues to hold certain securities which were sold by it but these have not been transferred by the buyers in their names. These securities do not belong to SBIMF but are held on behalf of the unknown buyers and not as Owners/Investors. Such securities are transferred to the , buyers against claims after establishing the genuineness of the claim. The market value of such securities as on 31st March 2011 is Rs. 15.53 crores. Scheme-wise unclaimed liability in respect of brokerage and some redemptions, dividends, reissue, refunds etc. aggregating to Rs. 11.06 crores is not re-instated in the respective schemes books of account. The process of identifying the same is in progress and is expected to be completed shortly.

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


a. State Bank of India SBI Mutual Fund is sponsored by State Bank of India, the largest public sector bank in India. The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 5 Lakhs to the Trustee as the initial contribution towards the corpus of the Mutual Fund. The State Bank of India SBI having its Corporate Office at State Bank Bhavan, Madame Cama Road, Mumbai - 400 021, is the largest public sector bank in India with 13542 branches in India and 156 offices in 32 countries worldwide. SBI also has 6 Banking Subsidiaries in addition to other nonbanking subsidiaries in India. State Bank of India holds 63% stake in SBI Funds Management Private Limited. Financial Performance of the SBI (Sponsor) {past three years}: Particulars Net Worth (Rs. Cr.) (Paid up Capital and Reserves & Surplus) Total Income (Rs. Cr.) Net Profit (Rs. Cr.) b. SBI Mutual Fund SBI Mutual Fund ( SBIMF) was set up as a Trust by the settlers, State Bank of India on June 29, 1987 with SBI Mutual Fund Trustee Company Private Limited (The Trustee Company) as a Trustee in accordance with the provisions of the Indian Trust Act,1882 and is duly registered under the Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated May 14, 1993 and also a supplemental thereto on April 28, 2003, which was replaced by Restated and Amended Investment Management Agreement December 29, 2004 with SBI Funds Management Private Ltd. (the AMC) to function as the investment Manager for all the Schemes of SBI MF. SBI MF was registered with SEBI on December 23, 1993 under Registration Code MF-009/93/3. 2011 64,986.00 97,219.00 8,265.00 2010 65,949.00 85,962.00 9,166.00 2009 57,948.00 76,479.00 9,121.23

Abridged Annual Report 2010-11

MAGNUM SECTOR FUNDS UMBRELLA


c. SBI Mutual Fund Trustee Company Private Limited The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. d. SBI Funds Management Private Limited SBI Funds Management Private Limited (SBIFMPL) is a private limited company incorporated under the Companies Act, 1956 on February 17, 1992, having its Registered Office at 191, Maker Tower E, Cuffe Parade, Mumbai 400 005. SBIFMPL has been appointed as the Asset Management Company of the SBI Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 14, 1993 and also a supplemental thereto on April 28, 2003 and the same have been replaced by Restated and Amended Investment Management Agreement entered into between SBIMFTCPL and SBIFMPL on December 29, 2004. As per the audited accounts on 31st March, 2011, the authorized and paid-up capital of the AMC was Rs. 50 crores and the Networth of the AMC was Rs. 266.35 Crores. Pursuant to the Shareholders and Share Purchase Agreement dated November 5, 2004 Societe Gnrale Asset Management (SGAM) was holding 37% of the paid up share capital of the AMC (i.e. 18,50,000 equity shares of Rs. 100/- each). Pursuant to a global merger of the fundamental asset management businesses of Credit Agricole S.A. and Societe Generale S.A and execution of the Shareholders Agreement dated April 13, 2011 amongst State Bank of India, Amundi, Amundi India Holding (AIH), SBI Funds Management Private Limited, Credit Agricole S.A. the Amundi S.A. through a wholly owned subsidiary known as Amundi India Holding (AIH) acquired 37% stake from SGAM. Accordingly, SBI currently holds 63% stake in SBI FMPL and the balance 37% stake is held by Amundi S.A. through a wholly owned subsidiary known as Amundi India Holding (AIH). In terms of Investment Management Agreement, SBIFMPL has assumed the day to day investment management of the fund and in that capacity makes investment decisions and manages the SBI Mutual Fund Schemes in accordance with the scheme objectives, Trust Deed, provisions of Investment Management Agreement and SEBI Regulations & Guidelines. In addition to the investment management activity, SBI Funds Management Private Limited has also been granted a certificate of registration as a Portfolio Manager with Registration Code INP000000852. SEBI has renewed the certificate for a period from January 16, 2010 to January 15, 2013. Apart from this SBI Funds Management Private Limited has received an in-principle approval from SEBI for SBI Resurgent India Opportunities Fund (Offshore Fund) vide letter no. IMD/RK/53940/2005 dated November 16, 2005. The AMC certifies that there would be no conflict of interest between the Asset Management activity and these other activities.

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


Magnum Sector Funds Umbrella Objective: An open-ended Growth Scheme, the investment objective is to provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors. There are four sub-funds dedicated to specific sectors viz. IT, Pharmaceuticals, FMCG, Contra sub fund for investment in stocks currently out of favour and Emerging Business Fund to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic focus. Magnum Sector Funds Umbrella (MSFU) - An open-ended scheme in which there are five sub-funds, viz. Information Technology (IT), Pharmaceuticals, Fast Moving Consumer Goods (FMCG) and a Contra subfund - investing in stocks currently out of favour and Emerging Businesses Fund is currently invested in high conviction stocks, with a bottom up strategy. The fund has no restriction in terms of market cap of the stocks. It is positioned as a high risk-high return fund. The endeavor is to relate value for investors through early identification of stocks that are likely to outperform in the future. It is extremely important for investors to stay invested in the fund long enough to benefit from the growth in the components of the portfolio. Accordingly, investors can chose to invest in one or more of the five subfunds. The sector specific funds (IT, FMCG and Pharma) focus on stock selection within the sector by identifying the potential outliers within the sector to maximize returns relative to the respective sectoral benchmarks. The Contra fund takes contrarian approach by investing in sectors/stocks which are under owned or have underperformed the broader market, but has good fundamental/valuation support and are expected to turnaround in the medium term. Magnum Sector Funds Umbrella IT Launch Date As on 31.03.11 Unit NAV Corpus : : Rs. 24.15 Rs. 20.82 crores : June 04, 1999.

Total assets under management: Rs.50.27 crores.

Abridged Annual Report 2010-11

MAGNUM SECTOR FUNDS UMBRELLA


Magnum Sector Funds Umbrella Pharma Launch Date As on 31.03.11 Unit NAV: Dividend Option Growth Option Corpus : : : Rs. 36.05 Rs. 43.62 Rs. 10.38 crores : June 04, 1999. Growth Option: December 31, 2004.

Total assets under management: Rs. 39.08 crores. Magnum Sector Funds Umbrella Contra Launch Date As on 31.03.11 Unit NAV: Dividend Option Growth Option Corpus : : : Rs.22.17 Rs.55.57 Rs. 925.40 crores : June 04, 1999 Growth Option- May 06, 2005.

Total assets under management: Rs. 3200.06 crores. Magnum Sector Funds Umbrella FMCG Launch Date As on 31.03.11 Unit NAV Corpus : : Rs. 29.24 Rs.12.31 crores. : June 04, 1999.

Total assets under management: Rs.36.01 crores. Magnum Sector Funds Umbrella EBF Launch Date As on 31.03.11 Unit NAV: Dividend Option Growth Option Corpus : : : Rs. 15.01 Rs. 39.64 Rs. 165.74 crores : August 23, 2004

Total assets under management: Rs. 336.95 crores.

4. SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTING POLICIES ARE IN ACCORDANCE WITH SECURITIES EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS 1996. 5. UNCLAIMED DIVIDENDS & REDEMPTIONS
Summary of No. of Investors & Corresponding amount scheme wise Unclaimed Dividends Scheme Magnum Sector Fund Umbrella - FMCG Magnum Sector Fund Umbrella IT Magnum Sector Fund Umbrella - Pharma Magnum Sector Fund Umbrella - Contra Magnum Sector Fund Umbrella EBF Amount (Rs.) 239,390 3,871,923 1,725,751 8,765,865 2,010,181 No. of Investors 65 696 759 1533 366 Unclaimed Redemptions Amount (Rs.) 325,863 2,035,726 391,923 3,847,932 2,608,490 No. of Investors 23 237 35 208 130

Abridged Annual Report 2010-11

MAGNUM SECTOR FUNDS UMBRELLA


6. REDRESSAL OF COMPLAINTS RECEIVED AGAINST MUTUAL FUNDS (MFs) DURING 2010 -2011
SBI Funds Management Private Limited : Total Number of Folios : 54,33,305 as on 31.3.2011 Complaint Type of Code Complaint # (a) No. of (b) No of complaints complaints pending received at the during the beginning year of the year within 30 days 66 64 3 53 Action on (a) and (b) Resolved Non Actionable* Pending

30 - 60 days

60 - 180 days

Beyond 180 days

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

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

3 2

64 62 3 53

0-3 3-6 6-9 9-12 months months months months 1

3269 2 7 164 3615

3267 166 3619

# *

including against its authorized persons / distributors / employees, etc. Non actionable means the complaint that are incomplete / outside the scope of the mutual fund

7. STATUTORY INFORMATION:
a. b. c. The Sponsors are not responsible or liable for any loss resulting from the operation of the schemes of the Fund beyond their initial contribution ( to the extent contributed) of Rs.5 lakhs for setting up the Fund, and such other accretions / additions to the same. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments in securities or fair value in underlying real estate asset, as the case may be. Full Annual Report is disclosed on the 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.

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

Place Date

: Mumbai : June 15, 2011

Abridged Annual Report 2010-11

MAGNUM SECTOR FUNDS UMBRELLA


FINANCIAL STATEMENTS MARCH 31, 2011 TOGETHER WITH AUDITOR'S REPORT
To the Board of Directors of SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED - MAGNUM SECTOR FUNDS UMBRELLA 1. We have audited the attached Balance Sheet of Magnum Sector Funds Umbrella, (the Scheme) of the SBI Mutual Fund (the Fund) as at March 31, 2011, the Revenue Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the managements of the Trustees and the Asset Management Companies. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We report that: i) ii) We have obtained all information and explanations, which, to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of accounts of the scheme and are in accordance with the accounting policies and standards as specified in Ninth schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. In our opinion, valuation method for Non Traded Securities, adopted by the scheme are fair and reasonable. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the notes thereon, gives a true and fair view in conformity with the accounting principles generally accepted in India: a. b. c. In case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2011; In case of Revenue Account, of the surplus of the scheme for the year ended on March 31, 2011; and In the case of Cash Flow Statement, of the cash flow of the scheme for the year ended on March 31, 2011.

2.

3.

iii) iv)

For Chandabhoy & Jassoobhoy Chartered Accountants Firm Regn. No.: 101647W Place Date : : Mumbai June 15, 2011 Samir M. Chinoy (Partner) Membership No.: F 40853

Abridged Annual Report 2010-11

ABRIDGED BALANCE SHEET AS AT MARCH 31, 2011


As at March 31, 2011 (Rupees in Lakhs) FMCG Fund LIABILITIES 1 2 Unit Capital Reserves & Surplus 2.1 2.2 Unit Premium Reserves Unrealised Appreciation Reserve Other Reserves 1,811 1,358 561 79,140 7,814 90,684 303 2,471 593 92,617 3,635 99,619 1,231 2,082 1,038 92,540 16,574 113,465 435 2,739 1,115 97,070 10,290 111,649 IT Fund Pharma Fund Contra Fund Emerging Business Fund TOTAL FMCG Fund As at March 31, 2010 (Rupees in Lakhs) IT Fund Pharma Fund Contra Emerging Fund Business Fund TOTAL

498 61 -

2,183 (596) -

772 1,537 -

29,616 118,710 -

1,885 7,422 -

34,953 127,134 -

305 (62) -

2,510 (2,299) -

765 1,112 -

65,115 102,392 -

2,910 3,811 -

71,604 104,955 -

2.3 3 4

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

0 63 3,664

196 5,223

62 3,970

4,589 324,595

672 34,367

0 5,582 371,818

0 15 996

169 5,591

49 3,634

3,614 360,808

731 21,377

0 4,577 392,405

ASSETS 1 Investments 1.1. Listed Securities: 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities 3,477 4,802 3,705 0 306,954 1,898 176 30,621 349,558 1,898 0 176 882 5,312 5 3,516 336,539 18,731 19 364,979 -

MAGNUM SECTOR FUNDS UMBRELLA

24 -

Securities Awaited Listing: 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5

Abridged Annual Report 2010-11 7

As at March 31, 2011 (Rupees in Lakhs) FMCG Fund 1.3 Unlisted Securities 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 2 3 Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities 3,477 2 166 19 0 4,802 4 417 0 11 3,716 2 242 10 0 9,787 318,815 1 1,757 4,022 1,986 32,607 1,239 521 0 11 11,773 363,417 8 3,821 4,572 882 2 11 99 2 IT Fund Pharma Fund Contra Fund Emerging Business Fund TOTAL FMCG Fund

As at March 31, 2010 (Rupees in Lakhs) IT Fund Pharma Fund Contra Emerging Fund Business Fund 1,010 10,234 347,783 4,103 1,514 3,710 3,698 18,749 210 123 1,684 610 376,247 4,320 1,764 5,664 4,410 TOTAL

0 5,317 4 47 142 81 -

3,516 2 69 27 20 -

0 1,010 10,234 -

Government Securities Treasury Bills Commercial Paper Certificate of Deposits Bill Rediscounting Units of Domestic Mutual Fund Foreign Securities Gold Total Investments

Deposits Other Current Assets 3.1 3.2 3.3 Cash & Bank Balance CBLO/ Reverse Repo Lending Others

MAGNUM SECTOR FUNDS UMBRELLA

Deferred Revenue Expenditure (to the extent not written off) TOTAL

3,664

5,223

3,970

324,595

34,367

371,818

996

5,591

3,634

360,808

21,377

392,406

Abridged Annual Report 2010-11 8

Notes to Accounts - Annexure I

ABRIDGED REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011
For the Year ended March 31, 2011 (Rupees in Lakhs)
FMCG Fund 1 INCOME 1.1 1.2 1.3 1.4 1.5 Dividend Interest Realised Gain / (Loss) on Foreign Exchange Transactions 38 9 94 7 50 10 0 4,963 835 (8) 280 83 872 5,424 944 900 10 2 51 6 34 3 60 3,542 998 2 181 26 34 3,818 1,035 96 IT Fund Pharma Fund Contra Fund Emerging Business Fund TOTAL FMCG Fund

For the Year ended March 31, 2010 (Rupees in Lakhs)


IT Fund Pharma Fund Contra Emerging Fund Business Fund TOTAL

Realised Gains /(Losses) on Interscheme sale of investments 35 Realised Gains /(Losses) on External sale /redemption of investments Realised Gains / (Losses) on Derivative Transactions Other Income (A)

141 223

1,362 1,463

569 629

39,319 (237) 1,010 45,882

4,364 64 5,663

45,755 (173) 1,010 53,861

106 117

(86) (29)

74 171

52,770 (2,477) 0 54,835

(274) (46) 0 (79)

52,589 (2,524) 0 55,015

1.6 1.7

EXPENSES 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Management fees 32 64 6 15 1 1 20 0 0 1 109 47 5 9 1 0 23 0 0 1 86 3,088 318 1,101 81 38 1,326 172 2 220 6,346 302 31 73 6 3 201 18 0 9 643 3,533 364 1,205 90 43 1,590 190 2 231 7,247 8 1 3 0 0 6 0 0 0 18 58 6 17 1 1 27 0 0 1 110 39 4 9 1 0 19 0 0 1 73 2,154 222 1,027 78 33 1,799 29 3 1,136 6,480 185 19 55 4 2 114 0 0 38 416 2,443 252 1,110 83 35 1,966 30 Service tax on Management fees 3 Transfer agents fees and expenses 7 Custodian fees Trusteeship fees Commission to Agents Audit fees Other operating expenses (B) 1 0 19 0 1 63

Marketing & Distribution expenses 0

MAGNUM SECTOR FUNDS UMBRELLA

3 1,175 7,098

NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) Change in Unrealised Depreciation in value of investments (D) NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) Change in unrealised appreciation in the value of investments (F)

160 160 193

1,354 1,354 (326)

543 543 7

39,536 (89) 39,447 (35,499)

5,020 10 5,030 (1,025)

46,613 (79) 46,534 (36,651)

99 32 131 305

(139) 1,237 1,098 2,510

98 1,273 1,371 765

48,355 44,761 93,117 65,115

(496) 10,012 9,516 2,910

47,917 57,315 105,232 71,604

Abridged Annual Report 2010-11 9

4 5 6

For the Year ended March 31, 2011 (Rupees in Lakhs)


FMCG Fund 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD ( E + F = G ) 7.1 Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve Add / (Less): Equalisation IT Fund Pharma Fund Contra Fund Emerging Business Fund 4,005 TOTAL FMCG Fund

For the Year ended March 31, 2010 (Rupees in Lakhs)


IT Fund Pharma Fund Contra Emerging Fund Business Fund 158,231 12,426 TOTAL

353

1,028

550

3,948

9,883

436

3,607

2,136

176,837

326

35,499

1,025

36,851

7.2

(193) (37) 123

348 1,702

(7) (117) 426

(1,485) 37,962

1,604 6,634

(199) 313 46,847

(305) (343) (212)

(2,510) (3,375) (2,278)

(765) (928) 444

(65,115) 2,661 95,777

(2,910) (4,611) 4,905

(71,604) (6,597) 98,636

7.3 8 9 Total

Dividend appropriation 9.1 9.2 Income Distributed during the year / period Tax on income distributed during the year / period 123 0 1,702 426 21,644 16,318 3,024 3,610 24,667 22,179 (212) (2,278) 444 26,551 69,227 1,905 2,999 28,456 70,180

10

Retained Surplus/(Deficit) carried forward to Balance sheet

Notes to Accounts - Annexure I

MAGNUM SECTOR FUNDS UMBRELLA

Abridged Annual Report 2010-11 10

MAGNUM SECTOR FUNDS UMBRELLA


NOTES TO ACCOUNTS - ANNEXURE I TO THE ABRIDGED BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR / PERIOD ENDED 31ST MARCH 2011
Amount in Rupees in Lakhs unless otherwise stated 1 Investments :1.1 The investments of the Scheme are held in the custody of the Funds custodian HDFC Bank Ltd. Investments are registered in the name of the scheme except where dispute exist or where the delivery has not become due. 1.2 Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end). Options MSFU IT MSFU- PHARMA MSFU FMCG MSFU CONTRA MSFU EBF As at 31st March 2011 Market Value Nil Nil Nil Nil Nil % to Net Assets Nil Nil Nil Nil Nil As at 31st March 2010 Market Value Nil Nil Nil Nil 251.97 % to Net Assets Nil Nil Nil Nil 1.22

1.3 Disclosure in accordance with SEBI Circular No. Cir/IMD/DF/11/2010 dated August 18, 2010: i. Hedging Positions through Futures as on 31-03-2011 Options Underlying Long/Short Future Price when Purchased Nil Nil Nil Nil Nil Current Price of the Contract Nil Nil Nil Nil Nil Margin Maintained (In Lakhs) Nil Nil Nil Nil Nil

MSFU IT MSFUPHARMA MSFUFMCG MSFU CONTRA MSFU EBF

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Total 0.0 %age of existing assets hedged through futures For the period 01-04-2010 to 31-03-2011 ended the following hedging transactions through futures have been squared off/expired : MSFU IT NIL MSFUPHARMA- NIL MSFUFMCG- NIL MSFU CONTRA Total Number of contracts where futures were bought Total Number of contracts where futures were sold Gross Notional Value of contracts where futures were bought (in Rs.) Gross Notional Value of contracts where futures were sold (in Rs.) Net Profit/Loss value on all contracts combined (in Rs.)* *Excluding brokerage on derivatives MSFU EBF Total Number of contracts where futures were bought Total Number of contracts where futures were sold Gross Notional Value of contracts where futures were bought (in Rs.) Gross Notional Value of contracts where futures were sold (in Rs.) Net Profit/Loss value on all contracts combined (in Rs.)* *Excluding brokerage on derivatives 603.00 603.00 16,45,59,743.10 16,56,26,569.45 10,66,826.35 194.00 194.00 6,87,63,498.85 6,30,77,664.40 (56,85,834.45)

Abridged Annual Report 2010-11

11

MAGNUM SECTOR FUNDS UMBRELLA


ii. Other than hedging Positions through Futures as on 31-03-2011 Options Underlying Long/Short Future Price when Purchased Nil Nil Nil Nil Nil Current Price of the Contract Nil Nil Nil Nil Nil Margin Maintained (In Lakhs) Nil Nil Nil Nil Nil

MSFU IT MSFUPHARMA MSFUFMCG MSFU CONTRA MSFU EBF

Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil

Total exposure due to futures(non hedging positions)as a 0.0 %age of net assets For the period 01-04-2010 to 31-03-2011 ended the following non-hedging transactions through futures have been squared off/expired MSFU IT NIL MSFUPHARMA- NIL MSFUFMCG- NIL MSFU CONTRA Total Number of contracts where futures were bought Total Number of contracts where futures were sold Gross Notional Value of contracts where futures were bought (in Rs.) Gross Notional Value of contracts where futures were sold (in Rs.) Net Profit/Loss value on all contracts combined (in Rs.)* *Excluding brokerage on derivatives MSFU EBF Total Number of contracts where futures were bought Total Number of contracts where futures were sold Gross Notional Value of contracts where futures were bought (in Rs.) Gross Notional Value of contracts where futures were sold (in Rs.) Net Profit/Loss value on all contracts combined (in Rs.)* *Excluding brokerage on derivatives iii. iv. v. Hedging Positions through Put Options as on 31-03-2011 NIL Other than Hedging Positions through Options as on 31-03-2011 NIL Hedging Position through Swaps as on 31-03-2011 -NIL 1,472.00 1,428.00 41,65,48,862.92 44,83,62,153.21 56,40,068.33 4,202.00 4,202.00 1,14,34,31,092.29 1,12,61,09,194.67 (1,73,21,897.62)

1.4 Investment in Sponsors / Associates and Group Companies by all schemes. MSFU - CONTRA Issuer and instrument Equity shares of State Bank of India Equity shares of State Bank of Mysore Non Convertible Debentures of State Bank of India Total MSFU - EBF Issuer and instrument Equity shares of State Bank of India Equity shares of State Bank of Mysore Non Convertible Debentures of State Bank of India Total Under this scheme As at 31-03-11 Nil Nil Nil Nil As at 31-03-10 Nil 257.82 Nil 257.82 All schemes of the Fund As at 31-03-11 61,643.47 683.11 431.71 62,758.29 As at 31-03-10 51,889.87 257.82 Nil 52,147.69 Under this scheme As at 31-03-11 5,543.44 Nil Nil 5,543.44 As at 31-03-10 10,632.34 Nil Nil 10,632.34 All schemes of the Fund As at 31-03-11 61,643.47 683.11 431.71 62,758.29 As at 31-03-10 51,889.87 257.82 Nil 52,147.69

Abridged Annual Report 2010-11

12

MAGNUM SECTOR FUNDS UMBRELLA


1.5 Open position of Securities Borrowed and /or Lent by the scheme : NIL (Previous Year : NIL) 1.6 Details of NPA: Aggregate market value and provision thereof. MSFU CONTRA Investment category Outstanding NCD Options MSFU IT MSFU-PHARMA MSFU FMCG MSFU CONTRA MSFU EBF Nil As at 31st March 2011 Provision Made Nil Book Value Nil As at 31st March 2011 Amount 2,183.24 771.96 497.70 29,526.25 1,884.77 % to Net Assets 43.43 19.75 13.82 9.23 6.48 As at 31st March 2010 Outstanding 1,010.00 Provision Made 1,010.00 As at 31st March 2010 Amount 2,509.66 765.18 305.01 65,114.55 2,909.90 % to Net Assets 46.29 21.35 31.10 18.23 14.09 Book Value Nil

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

1.8 Aggregate Value of Purchase and Sale with Percentage to Average Net Assets. Options Purchase Current Year % to Avg Net Assets Value 30.52 77.03 133.34 Sale % to Avg Net Assets Value 60.64 86.88 45.31 Purchase Previous Year % to Avg Net Assets Value 47 123 149 Sale % to Avg Net Assets Value 62 135 160 260 190

MSFU-IT MSFU-PHARMA MSFU-FMCG MSFU- CONTRA MSFU-EBF Options

1,571.21 2,902.20 3,370.68 2,10,633.55 51,950.28

3,121.93 3,273.26 1,145.28

2,205.35 3,793.01 1,195.52

2,889.81 4,188.02 1,284.57

60.50 2,41,877.41 187.72 42,303.71

69.47 7,95,666.76 152.86 28,829.57

268 7,71,434.04 180 30,331.13

1.9 Non-Traded securities in the portfolio : As at 31st March 2011 Market Value MSFU IT MSFU PHARMA MSFU FMCG MSFU CONTRA MSFU EBF 2. Details of Transaction with Associates under regulation 25(8). a. Brokerage Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes Segment Name of Related Party Nature of Relationship Period Covered Value of Transaction and % of Total Value of Transactions % Equity SBICAP Securities Ltd. SG Asia Holdings (India) Pvt. Ltd. Futures & Options Debt SBICAP Securities Ltd. SG Asia Holdings (India) Pvt. Ltd. Group Company Group Company Group Company Group Company Current Year Current Year Current Year Current Year 94,065.85 Nil 998.88 Nil 3.71 0.24 179.20 Nil 0.47 Nil Brokerage & % of Total Brokerage % 4.40 0.36 Nil 10.71 Nil 9,962.77 1,986.51 % to Net Assets Value Nil 0.27 Nil 3.11 5.90 As at 31st March 2010 Market Value 5.48 Nil Nil 10,247.61 18.62 % to Net Assets Value 0.10 Nil Nil 2.87 0.09

No Transaction Executed Through Related Party

Abridged Annual Report 2010-11

13

MAGNUM SECTOR FUNDS UMBRELLA


Segment Name of Related Party Nature of Relationship Group Company Group Company Group Company Group Company Period Covered Previous Year Previous Year Previous Year Previous Year Value of Transaction and % of Total Value of Transactions % Equity SBICAP Securities Ltd. SG Asia Holdings (India) Pvt. Ltd. Futures & Options Debt b. SBICAP Securities Ltd. SG Asia Holdings (India) Pvt. Ltd. 1,10,741.70 3,684.83 16,165.72 4,114.26 3.70 0.12 1.05 0.27 198.30 1.42 6.61 1.62 Brokerage & % of Total Brokerage % 4.05 0.03 1.21 0.30

No Transaction Executed Through Related Party

Commission Paid to Associates/Related Parties/ Group Companies of Sponsor/AMC by all schemes Name of Related Party Nature of Relation Period Covered Business Given and %of Total Business Received % Anand Rathi Financial Services Ltd. Centrum Finance Ltd. SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Capital Markets Ltd. SBI Commercial & International Bank Ltd. Malwa Gramin Bank Uttaranchal Gramin Bank Purvanchal Gramin Bank Chattisgarh Gramin Bank Associate* Associate* Group Company Group Company Group Company Group Company Sponsor Group Company Group Company Group Company Group Company Group Company Group Company Associate* Associate* Associate* Associate* Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Total Name of Related Party Nature of Relation Period Covered Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17,850.83 1,58,879.07 18,36,533.48 58,11,152.67 0.00 4,00,413.77 7,77,852.09 82,257.33 4,15,074.24 28,124.10 0.48 0.05 105.65 50.09 95,28,293.84 0.01 0.01 0.15 5.68 0.00 0.36 0.33 0.11 0.03 0.01 0.00 0.00 0.01 0.00 6.70 0.62 85.30 109.55 3,295.39 15.62 55.36 163.84 126.26 28.99 7.23 3.65 0.00 1.49 0.30 3,893.62 Commission paid & % of Total Commission paid by the Fund % 0.02 0.27 0.51 15.39 0.00 0.33 0.75 0.48 0.09 0.03 0.01 0.00 0.01 0.00 17.89

Business Given and %of Total Business Received %

Commission paid & % of Total Commission paid by the Fund % 24.37 19.06 0.00 46.51 49.02 116.48 3,032.47 29.09 53.56 107.52 123.43 3,601.51 0.17 0.13 0.00 0.32 0.34 0.80 20.72 0.20 0.37 0.73 0.84 24.61

Anand Rathi Financial Services Ltd. Centrum Finance Ltd. SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore 0.00 Indicate amount less than Rs. 500

Associate* Associate* Group Company Group Company Group Company Group Company Sponsor Group Company Group Company Group Company Group Company

Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Previous Year Total

10,130.03 44.70 87,611.27 16,99,921.79 3,60,250.27 4,73,660.70 37,69,689.17 24,888.55 29,205.50 4,63,257.34 1,02,218.53 70,20,877.85

0.04 0.00 0.30 5.91 1.25 1.65 13.10 0.09 0.10 1.61 0.36 24.39

* indicate Associate as per SEBI Regulations

Abridged Annual Report 2010-11

14

MAGNUM SECTOR FUNDS UMBRELLA


c. The transactions entered into during the year by the scheme with the related parties are as under: MSFU -FMCG Type of Transaction Bank Charges Name of Related Party SBI Cards and Payments Services Pvt. Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Management Fees Other Operating Charges Trusteeship Fee Brokerage on Issue of Magnums SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. SBI Mutual Fund Trustee Company Pvt. Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Chhattisgarh Gramin Bank SBI Capital Markets Ltd. Brokerage on Investments MSFU -IT Type of Transaction Bank Charges Name of Related Party SBI Cards and Payments Services Pvt. Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. State Bank of Travancore SBI Mutual Fund Trustee Company Pvt. Ltd. SBI Commercial & International Bank Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Capital Markets Ltd SBICAP Securities Ltd. Current Year Nil 0.00 0.00 0.22 Nil 0.00 0.00 0.00 64.35 0.03 Nil 0.57 0.02 Nil 0.00 0.04 2.11 0.02 0.01 0.03 0.11 0.03 1.17 Previous Year 0.00 0.00 0.00 0.17 0.00 0.00 0.00 0.00 58.45 0.06 9.42 0.52 0.01 0.03 0.01 0.04 1.91 0.03 0.02 0.02 0.11 Nil 0.38 SBICAP Securities Ltd. Current Year Nil 0.00 0.00 0.27 Nil 0.00 0.00 0.00 31.60 0.03 0.28 Nil 0.02 0.00 1.94 0.00 0.01 0.01 0.05 0.00 0.01 Nil Previous Year 0.00 0.00 0.00 0.09 0.00 0.00 0.00 0.00 7.62 0.02 0.09 0.00 0.03 0.00 0.58 0.00 0.00 0.00 0.01 Nil Nil 0.28

Management Fees Other Operating Charges Repurchase of Magnums (In Lakhs) Trusteeship Fee Brokerage on Issue of Magnums

Brokerage on Investments

Abridged Annual Report 2010-11

15

MAGNUM SECTOR FUNDS UMBRELLA


MSFU -PHARMA Type of Transaction Bank Charges Name of Related Party SBI Cards and Payments Services Pvt. Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Management Fees Other Operating Charges Trusteeship Fee Brokerage on Issue of Magnums SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. SBI Mutual Fund Trustee Company Pvt. Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI Capital Markets Ltd. SBI Commercial & International Bank Ltd. Brokerage on Investments MSFU -CONTRA Type of Transaction Bank Charges Name of Related Party SBI Cards and Payments Services Pvt. Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Dividend Paid State Bank of India Vananchal Gramin Bank Vananchal Gramin Bank- Dumka Dividend Received Fixed Deposit Matured Interest Received on Fixed Deposits Management Fees Other Operating Charges Purchase of Securities Repurchase of Magnums (In Lakhs) State Bank of India State Bank of Indore State Bank of Indore Vananchal Gramin Bank SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. State Bank of India State Bank of India State Bank of Mysore State Bank of Hyderabad Krishna Grameena Bank Current Year Nil 0.92 1.27 154.59 Nil 2.47 6.74 0.01 270.90 3.83 7.91 107.28 Nil Nil 2.13 3,088.36 1.84 11,894.52 77.40 Nil 7.87 0.09 Previous Year 9.47 0.25 1.59 94.04 0.10 0.96 0.96 0.21 387.00 Nil Nil 250.71 5,000.00 11.06 Nil 2,153.59 3.49 2,476.72 Nil 9.08 Nil Nil SBICAP Securities Ltd. Current Year Nil 0.00 0.00 0.17 Nil 0.00 0.00 0.00 47.10 0.03 0.42 Nil 0.04 0.24 2.03 0.03 0.01 0.02 0.07 0.04 0.07 0.33 Previous Year 0.01 0.00 0.00 0.16 0.00 0.00 0.00 0.00 38.69 0.02 0.34 0.03 0.03 0.33 1.34 0.06 0.01 0.01 0.04 Nil Nil 0.20

Abridged Annual Report 2010-11

16

MAGNUM SECTOR FUNDS UMBRELLA


Type of Transaction Sale of Securities Trusteeship Fee Brokerage on Issue of Magnums Name of Related Party State Bank of India SBI Mutual Fund Trustee Company Pvt. Ltd. SBI Commercial & International Bank Ltd. SBI DFHI Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Chhattisgarh Gramin Bank Malwa Gramin Bank Purvanchal Gramin Bank SBI Capital Markets Ltd Uttaranchal Gramin Bank Brokerage on Investments MSFU -EBF Type of Transaction Bank Charges Name of Related Party SBI Cards and Payments Services Pvt. Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Management Fees Other Operating Charges Purchase of Securities Sale of Securities Trusteeship Fee Brokerage on Issue of Magnums SBI Funds Management Pvt. Ltd. Clearing Corporation of India Ltd. State Bank of Mysore State Bank of Mysore SBI Mutual Fund Trustee Company Pvt. Ltd. SBICAP Securities Ltd. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Chhattisgarh Gramin Bank SBI Capital Markets Ltd Brokerage on Investments Dividend Received Repurchase of Magnums (In Lakhs) 0.00 Indicate amount less than Rs. 500 SBICAP Securities Ltd. State Bank of Mysore State Bank of Hyderabad Current Year Nil 0.03 0.04 4.45 Nil 0.02 0.03 0.00 301.74 0.24 184.93 437.61 3.05 Nil 0.37 1.55 33.18 0.06 0.37 6.40 0.80 0.00 0.16 6.34 4.86 11.64 Previous Year 0.11 0.01 0.15 2.18 0.01 0.01 0.09 0.01 184.69 0.23 291.07 Nil 1.76 0.14 0.25 0.97 25.52 0.10 0.26 0.16 0.63 Nil Nil 2.69 Nil Nil SBICAP Securities Ltd. Current Year 21,925.08 38.40 1.70 0.00 Nil 5.24 8.60 676.26 2.13 12.02 22.02 22.99 0.04 0.00 0.18 0.96 0.00 34.76 Previous Year 5,976.63 32.69 2.89 0.04 1.17 5.46 8.52 655.23 4.23 12.96 16.31 25.04 Nil Nil Nil Nil Nil 35.69

Abridged Annual Report 2010-11

17

MAGNUM SECTOR FUNDS UMBRELLA


3. 4. Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) : NIL ( Previous year : NIL ) Unit Capital movement during the year ended / period ended. Plan wise details of movement in units - opening, subscription, redemption, closing. indicate planwise face value of units. MSFU-IT Current Year No. of Units in Lakhs Face Value Opening Subscription Dividend Reinvestment Redemption Closing MSFU-PHARMA Current Year No. of Units in Lakhs Dividend Face Value Opening Subscription Dividend Reinvestment Redemption Closing MSFU-FMCG Current Year No. of Units in Lakhs Face Value Opening Subscription Dividend Reinvestment Redemption Closing MSFU-CONTRA Current Year No. of Units in Lakhs Dividend Face Value Opening Subscription Dividend Reinvestment Redemption Closing 10.00 6,094.74 1,468.99 337.13 2,079.15 5,821.72 Growth 10.00 3,612.26 1,195.75 1,375.73 3,432.29 9,707.00 2,664.74 337.13 3,454.87 9,254.01 Total Dividend 10.00 4,665.76 2,525.23 446.97 1,543.22 6,094.74 Previous Year No. of Units in Lakhs Growth 10.00 3,299.85 1,630.24 1,317.83 3,612.26 7,965.61 4,155.47 446.97 2,861.05 9,707.00 Total 10.00 43.46 130.30 50.62 123.14 Previous Year No. of Units in Lakhs 10.00 45.74 14.84 17.12 43.46 10.00 91.48 12.36 22.19 81.65 Growth 10.00 20.00 15.44 13.33 22.11 111.49 27.80 35.52 103.76 Total Dividend 10.00 108.73 5.17 22.42 91.48 Previous Year No. of Units in Lakhs Growth 10.00 22.87 7.12 9.98 20.00 131.60 12.29 32.40 111.49 Total 10.00 273.95 30.41 (0.00) 96.19 208.16 Previous Year No. of Units in Lakhs 10.00 321.76 86.48 134.30 273.95

Abridged Annual Report 2010-11

18

MAGNUM SECTOR FUNDS UMBRELLA


MSFU-EBF Current Year No. of Units in Lakhs Dividend Face Value Opening Subscription Dividend Reinvestment Redemption Closing 5. 6. 7. 10.00 785.29 902.09 89.24 477.27 1,299.35 Growth 10.00 243.72 349.91 235.55 358.08 1,029.01 1,252.01 89.24 712.82 1,657.43 Total Dividend 10.00 714.90 180.42 48.66 158.68 785.29 Previous Year No. of Units in Lakhs Growth 10.00 224.24 103.24 83.75 243.72 939.13 283.66 48.66 242.44 1,029.01 Total

Expenses other than management fees are disclosed inclusive of service tax. Figures of the previous year have been regrouped, wherever necessary to confirm with the current years figures. Contingent liability in respect of Underwriting Commitments, Uncalled liability on partly paid shares and other commitments are Nil (Previous Year Nil).

Abridged Annual Report 2010-11

19

MAGNUM SECTOR FUNDS UMBRELLA


KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2011
Current Year / Period ended 31/03/2011 MAGNUM SECTOR FUND UMBRELLA - FMCG FUND 1. NAV per unit (Rs.): Open High Low End 2. Closing Assets Under Management (Rs. in Lakhs) End Average (AAuM) 3. 4. Gross income as % of AAuM1 Expense Ratio: a. Total Expense as % of AAuM (plan wise) ### b. Management Fee as % of AAuM (plan wise) 5. 6. 7. 8. Net Income as a percentage of AAuM2 Portfolio turnover ratio4 Total Dividend per unit distributed during the year / period (plan wise) Returns: a. Last One Year Scheme Plan Dividend Benchmark-BSE-FMCG b. Since Inception Scheme Plan Dividend Benchmark-BSE-FMCG 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 12.52 9.34 11.03 7.82 29.78 27.02 77.12 39.04 2.48 1.25 6.34 0.43 NIL 2.27 0.95 12.38 1.47 NIL 3,600.85 2,527.93 8.82 980.99 801.69 14.65 22.57 31.37 22.80 29.24 12.75 22.70 12.85 22.57 Previous Year / Period ended 31/03/2010

### 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.

Abridged Annual Report 2010-11

20

MAGNUM SECTOR FUNDS UMBRELLA


KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2011
Current Year / Period ended 31/03/2011 MAGNUM SECTOR FUNDS UMBRELLA - IT FUND 1. NAV per unit (Rs.): Open High Low End 2. Closing Assets Under Management (Rs. in Lakhs) End Average (AAUM) 3. 4. Gross income as % of AAuM Expense Ratio: a. Total Expense as % of AAuM ### b. Management Fee as % of AAuM 5. 6. 7. 8. Net Income as a percentage of AAuM Portfolio turnover ratio Total Dividend per unit distributed during the year / period Returns: a. Last One Year Scheme Benchmark - BSE - IT b. Since Inception Scheme Benchmark - BSE - IT 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 13.80 14.93 13.09 14.03 21.70 25.02 147.74 129.14 2.13 1.25 26.30 0.31 NIL 2.36 1.25 -2.97 0.46 NIL 5,027.02 5,148.30 28.43 5,421.83 4,676.09 -0.61 19.78 25.44 18.56 24.15 8.03 20.90 8.54 19.78 Previous Year / Period ended 31/03/2010

### 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.

Abridged Annual Report 2010-11

21

MAGNUM SECTOR FUNDS UMBRELLA


KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2011
Current Year / Period ended 31/03/2011 MAGNUM SECTOR FUNDS UMBRELLA-PHARMA 1. NAV per unit (Rs.): Open Dividend Growth High Dividend Growth Low Dividend Growth End Dividend Growth 2. Closing Assets Under Management (Rs. in Lakhs) End Average (AAuM) 3. 4. Gross income as % of AAuM1 Expense Ratio: a. Total Expense as % of AAuM (plan wise) ### b. Management Fee as % of AAuM (plan wise) 5. 6. 7. 8. Net Income as a percentage of AAuM2 Portfolio turnover ratio4 Total Dividend per unit distributed during the year / period (plan wise) Returns: a. Last One Year Scheme Growth Dividend Benchmark - BSE - HC Growth Dividend b. Since Inception Scheme Growth Dividend Benchmark - BSE - HC Growth Dividend 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 11.40 14.09 11.09 14.18 17.87 15.90 10.53 15.86 13.05 13.05 16.29 16.29 112.97 113.23 88.27 2.29 1.25 14.40 0.77 NIL 2.35 1.25 3.16 1.21 NIL 3,908.18 3,767.76 16.69 3,584.16 3,095.47 5.51 36.05 43.62 30.98 37.49 31.22 37.78 14.77 17.91 38.71 46.83 30.94 37.44 30.98 37.49 14.51 17.59 Previous Year / Period ended 31/03/2010

### 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.

Abridged Annual Report 2010-11

22

MAGNUM SECTOR FUNDS UMBRELLA


KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2011
Current Year / Period ended 31/03/2011 MAGNUM SECTOR FUNDS UMBRELLA-CONTRA 1. NAV per unit (Rs.): Open Dividend Growth High Dividend Growth Low Dividend Growth End Dividend Growth 2. Closing Assets Under Management (Rs. in Lakhs) End Average (AAuM) 3. 4. Gross income as % of AAuM1 Expense Ratio: a. Total Expense as % of AAuM (plan wise) ### b. Management Fee as % of AAuM (plan wise) 5. 6. 7. 8. Net Income as a percentage of AAuM2 Portfolio turnover ratio4 Total Dividend per unit distributed during the year / period (plan wise) Returns: a. Last One Year Scheme Dividend Growth Benchmark - BSE 100 Dividend Growth b. Since Inception Scheme Dividend Growth Benchmark - BSE 100 Dividend Growth 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 15.52 19.78 16.19 9.39 25.61 22.86 28.32 28.20 8.55 8.55 88.17 88.17 (0.19) (0.22) 87.80 87.87 1.82 0.89 11.36 0.42 3.50 1.85 0.73 31.42 1.11 5.00 3,20,005.55 3,48,158.29 13.18 3,57,193.98 2,96,400.72 19.34 22.17 55.57 25.44 55.96 20.23 50.75 17.83 31.32 26.73 65.58 26.73 57.28 25.44 55.96 16.89 29.67 Previous Year / Period ended 31/03/2010

### 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.

Abridged Annual Report 2010-11

23

MAGNUM SECTOR FUNDS UMBRELLA


KEY STATISTICS FOR THE YEAR / PERIOD ENDED 31/03/2011
Current Year / Period ended 31/03/2011 MAGNUM SECTOR FUNDS UMBRELLA - EMERGING BUSINESS FUND 1. NAV per unit (Rs.): Open Dividend Option Growth Option High Dividend Option Growth Option Low Dividend Option Growth Option End Dividend Option Growth Option 2. Closing Assets Under Management (Rs. in Lakhs) End Average (AAuM) 3. 4. Gross income as % of AAuM1 Expense Ratio: a. Total Expense as % of AAuM (plan wise) ### b. Management Fee as % of AAuM (plan wise) 5. 6. 7. 8. Net Income as a percentage of AAuM2 Portfolio turnover ratio4 Total Dividend per unit distributed during the year / period (plan wise) Returns: a. Last One Year Scheme Growth Benchmark - BSE 500 b. Since Inception Scheme Growth Benchmark - BSE 500 1. 2. 3. 4. Gross income = amount against (A) in the Revenue account i.e. Income. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD AAuM=Average daily net assets Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 23.45 20.11 25.31 22.54 13.65 7.48 152.68 96.38 2.32 1.09 18.14 1.61 2.50 2.40 1.16 -3.10 1.98 2.50 33,694.86 27,674.78 20.46 20,645.94 15,983.40 1.51 15.01 39.64 15.47 34.87 14.55 33.85 8.04 14.87 20.12 45.33 15.50 34.93 15.47 34.87 7.45 13.79 Previous Year / Period ended 31/03/2010

### 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.

Abridged Annual Report 2010-11

24

MAGNUM SECTOR FUNDS UMBRELLA PROXY VOTING POLICY


OBJECTIVES
SBI Funds Management Private Limited (hereinafter referred to as AMC) acts as investment manager for the schemes of SBI Mutual Fund. SBI Mutual Fund is a Mutual Fund registered with Securities Exchange & Board of India under the SEBI (Mutual Funds) Regulations, 1996. Equity Mutual funds, diversified funds and other mutual funds with an equity component hold securities and/ or shares of companies/ corporations registered in India and abroad. In connection with these investments of SBI Mutual fund, the AMC exercises voting responsibilities for these investments through the corporate proxy voting process available to the members of the Company/ Corporations. The AMC intends to exercise its votes in the best of interest of funds as a shareholder/ unit holders. This policy defines the principles that form the basis of all votes exercised by the AMC. When voting proxies, the AMC shall take utmost care to ensure that all decisions are made solely in the interests of the funds/unitholders and with the goal of maximizing the value of their investments. However, the AMC, at no point in time intends to participate directly or indirectly in the management of the companies.

PROXY VOTING PROCESS


The AMC has constituted a Proxy Voting Committee (hereinafter referred to as Committee) comprising of Senior Officials of the AMC. The Committee will have the final authority to decide upon exercise of votes. The Committee will meet at periodic intervals as and when required to consider proposals for exercise of votes. The quorum for the meeting will be minimum three members, one of which shall be the Managing Director, Dy. Chief Executive Officer or Chief Investment Officer. The Committee may obtain recommendations/ feedback/ opinion/ views from Fund Managers, Research Analysts or such other persons as may be felt necessary. The AMC may decide to subscribe to services offered by an unaffiliated third party research firm, to receive analyses and recommendations on the shareholder meetings of companies/ corporations. These analyses will be reviewed and studied before taking a final voting decision. The Committee shall at all times have the discretion to decide to exercise a voting right or abstain from it. The AMC has set in place broad guidelines for exercise of the voting rights. The Committee shall appoint/ authorise any official of the Company and/ or any such service provider to act as a representative to implement the decisions taken by the Committee and take any necessary action as may be required.

GENERAL VOTING GUIDELINES


A decision to invest is generally an endorsement of the management of an issuer and its strategy for the company. On routine matters, which do not materially impact the interest of the unitholders, the AMC will abstain from voting. When it believes that it is in the best interest of the unitholders to vote for/ against a resolution, the AMC may do so. Some of the key considerations for exercise of a vote will depend on the following factors : Does it protect the unit holders rights? Will it have an impact on the Companys profitability? Will it impact the companys governance? What will be the impact on the shareholders value? Will the resolution provide any undue benefits to promoters/ their affiliates/ subsidiaries/ group companies? The AMC has adopted general guidelines for voting proxies. Corporate Governance issues are various and continuously evolving. The guideline set forth below are not and cannot be a comprehensive survey of the proxy voting guidelines as all kinds of issues cannot be anticipated. Therefore, these guidelines rather reflect some of the principles that will generally be supported by the AMC. However, the AMC may exercise its discretion and act accordingly in some instances when it determines that based on the facts, it is in the best interest of the fund as a shareholder. Board of Directors : We support an independent board of competent individuals. When renewing a mandate, we will be attentive to the % of attendance. The compensation policy should be directly linked to the long term performance of the company. Against requiring a minimum stock ownership for Directors, unless required by law. Against giving the board the authority to set its size freely without shareholder approval. Against mandatory retirement. Against fixed tenure policies. Against proposals that directors can only be removed for legal cause. For increasing the independence of committees that are responsible for nominating members of the board, supervising outside auditors, and setting the terms of compensation for executive management For creating a nominating committee. For creating a compensation committee. For creating an audit committee

Shareholder Proposals
Against elimination or restriction of shareholders right to call special meetings Against eliminating or limiting the shareholders right to act by written consent. Against limitation on the right of shareholders to remove directors to cases where there is legal cause Against the issuance of preferred stock with superior voting rights For the adoption of confidential voting and the independent tabulation of proxy ballots. For the facilitation of shareholder voting, including the provision of electronic voting For asking the Board to adopt confidential voting and independent tabulation of the proxy ballots.

Abridged Annual Report 2010-11

25

MAGNUM SECTOR FUNDS UMBRELLA


Anti-Takeover Provisions and Merger and corporate restructuring : M&A will be carefully analysed to assess if it is beneficial to the shareholders. Against proposals that have the effect of entrenching existing management Against stock option and stock incentive plans that result in excessive dilution Against excessive golden parachute plans For proposals requesting reports on sustainability, environmental impact or plans, human rights policies, and global labor practices, provided such proposals do not call for specific actions that might limit managements freedom of action. Compensation:

Social Issue Proposals :

CONFLICT OF INTEREST
The AMC is a separate entity from the activities of its two shareholders (State Bank of India and Societe Generale Asset Management). All decisions pertaining to votes will be taken in the best interest of the units holders of SBI Mutual Fund.

PROXY VOTING RECORDS


The records of proxy voting exercised on behalf of SBI Funds management will be made available on the website of the Asset Management Company (www.sbimf.com). The actual exercise of the proxy votes by SBI Funds Management Pvt. Ltd. in the AGMs/EGMs/ Postal Ballots of the investee companies for the F 2010 .Y. 2011 are as follows: Date Name of the Company Type of Proposals meeting AGM 1. 2. 3. 4. Adoption of Accounts Declaration of Interim & Final Dividend Appointment of Directors (Mr. Setia & Mr.Gaggar) Appointment of Auditors (M/s. B. R. Maheshwari & Co.) 5. Borrowing powers & Creation of Mortgage / Charge in favor of lenders to secure Loans / borrowings upto limit of Rs. 3500 Crores Preferential allotment to Promoter and Promoter Group 1. Adoption of Accounts 2. Declaration of Final Dividend 3. Appointment of Directors (Mr. Ramani, Mr. Bhargava, Mr. Nayak, Mr. Deosthalee, Mr. Chitale & Mr. Mohan Raj) 4. Appointment of Stat. Auditors (M/s. Sharp & Tannan.) 5. Reappointment of Mr. Deostalee & Mr. Kotwal as whole time directors. 6. Payment of commission to non Executive directors 7. Further Issue of Shares u/s 81(1A) 1. Adoption of Accounts 2. Appointment of Directors (Mr. Devendra Gupta, Mr. Naresh, Mr. Jhunjhunwala, Mr. Shailendra Gupta) 3. Appointment of Auditors (M/s. Price Waterhouse) 4. Proposal for Amendment in Articles of Association 1. To adopt audited B/s, directors report and auditors report 2. Appointment of directors (Mr.Banerjee, Dr. Mrs. Ramchangran, Mr. Madhavji, Mr. Shroff 3. Payment of remuneration whole time directors for five financial years one percent of net profits. Management Recommendation The Management is in favor of all the proposals Vote (For/Against/ Abstain) For

14-Aug-10

SHREE CEMENT

24-Aug-10 24-Aug-10

MANAPPURAM GENERAL FINANCE & LEASING LTD LARSEN & TOUBRO LIMITED

EGM AGM

Abstain The Management is in favor of all the proposals For

26-Aug-10

JAGRAN PRAKASHAN LTD

AGM

The Management is in favor of all the proposals

For

8-Sep-10

UNITED PHOSPHORUS LTD

AGM

8-Sep-10

THE TATA POWER COMPANY LTD

AGM

1. To adopt audited B/s, directors report and auditors report. 2. Dividend declaration 3. Re-appointment of Directors (Mr. Engineer, Mr. Mirza, Mr. Gopalkrishnan) 4. Re-appointment & to fix remuneration of Auditors M/s. Deloitte Haskins & Sells. 5. Payment of commission to Non-Executive Directors

The Management is in favor of all the proposals except for resolution on remuneration to Whole time Directors which will be abstained from voting The Management is in favor of all the proposals

For- (all proposals except for resolution on commission to directors which is to be abstained from voting) For

Abridged Annual Report 2010-11

26

MAGNUM SECTOR FUNDS UMBRELLA


Date Name of the Company Type of Proposals meeting AGM 1. Adoption of Accounts 2. Declaration of Final Dividend 3. Appointment of Directors (Mr. Patra, Mr. Mehta & Mr. Doogar) 4. Appointment of Auditors (M/s. V. Sankar Aiyar & Co.) 5. Appointment of Mrs. Saraf, Associate Vice President of the Company for a period of 5 years 1. Adoption of Accounts 2. Declaration of Final Dividend 3. Appointment of Directors (Dr. Mirchandani, Dr. Jadhav & Mr. Chakradhar B. Chaya) 4. Appointment of Auditors (M/s Kirti D. Shah & Associates) 5. Addition of new clause to the Memorandum of Association 1. To adopt audited B/s, directors report, auditors report. 2. Confirmation of Interim Dividend. 3. Reappointment of Directors (Mr. Sheth & Mr. Mahajan) & Auditors ( M/s B.D. Jokhakar & Co) 4. Subdivision of F. V. of Equity Shares & Alteration in MOA & AOA 1. Adoption of Accounts 2. Declaration of Final Dividend 3. Appointment of Directors (Mr. Ravi, Mr. Basu, Mr. Pathan) 4. Appointment of Directors (Mr. Saraya, Mr. Jairath & Mr. Bhutani) 1. Adoption of Accounts 2. Declaration of Final Dividend 3. Re-appointment of Directors (Mr. Reddy & Mr. Werner) 4. Re-appointment of Stat. Auditors (P Srinivasan & Co.) . 1. To adopt audited B/s, directors report, auditors report 2. To declare final dividend 3. Appointment of Directors [Shri Goel, Dr Sen, Shri Mahesh Shah, Shri R.M. Sethi, Dr. Vinayshil Gautam, Shri S.L. Raina(Director HR), Shri Prabhat Singh (Director Marketing), Shri Sudhir Bhargava] 4. Appointment of a relative of a director(Ms. Esha Goel) of the Company in the place of profit 1. Adoption of Accounts 2. Declaration of Interim & Final Dividend 3. Re-appointment of Directors (Mr. Narain, Mr. Sengupta, Mr. Dharmarajan, Mr. Rao & Mr. D.K.Jain) 4. To Fix Remuneration of Auditors. 1. To adopt audited B/s, directors report and auditors report. 2. Dividend declaration 3. Re-appointment of Directors(Mr. Kapoor, Mr. Pandian, Mr. Srivastava) 4. To fix remuneration of Auditors. 1. To adopt audited B/s, directors report and auditors report. 2. To confirm the payment of Interim & Final dividend for FY 09-10. 3. Appointment of Directors (Mr. Luke, Mr. Khanna, Mr. Gupta 4. To fix remuneration of auditors. Management Recommendation The Management is in favor of all the proposals Vote (For/Against/ Abstain) For

9-Sep-10

RADICO KHAITHAN LIMITED

15-Sep-10

ARIES AGRO LTD.

AGM

The Management is in favor of all the proposals

For

16-Sep-10

UNICHEM LABORATORIES LTD AGM

Abstain

17-Sep-10

BHARAT HEAVY ELECTRICALS LIMITED

AGM

The Management is in favor of all the proposals

For

20-Sep-10

SAGAR CEMENTS LTD

AGM

The Management is in favor of all the proposals

For

22-Sep-10

GAIL (INDIA) LTD

AGM

The Management is in favor of all the proposals

For

23-Sep-10

NTPC LTD

AGM

The Management is in favor of all the proposals

For

24-Sep-10

GUJARAT STATE FERTILIZERS & CHEMICALS LTD

AGM

The Management is in favor of all the proposals

For

25-Sep-10

OIL INDIA LTD

AGM

The Management is in favor of all the proposals

For

Abridged Annual Report 2010-11

27

MAGNUM SECTOR FUNDS UMBRELLA


Date Name of the Company Type of meeting AGM Proposals Management Recommendation Vote (For/Against/ Abstain) Abstain

28-Sep-10

HATHWAY CABLE & DATACOM LTD

23-Oct-10

28-Oct-10

29-Oct-10

1. To adopt audited B/s, directors report and auditors report. 2. Appointment of Directors [Mr. V. Agarwal, Mr. Rajan Raheja, Mr, Akshay Raheja,Mr. Bharat Shah, Mr. S Mirchandani, Mr.Gorthi, Mr. D Shrotri,and reappointment of MD & CEO (Mr. K. Jayaraman) for a period of three years. 3. Amendment in the ESOP Plan 2007 (revised 2010). SUN TV NETWORK LTD Postal 1. Reappointment of Whole time Director [Mrs. Kavery Ballot Kalanithi]for a term of 5 years 2. Reappointment of Chairman and M.D.[Mr. Kalanithi Maran]for a term of 5 years INDIAN OIL CORPORATION Postal 1. Increase in Authorized Share Capital from LTD Ballot Rs.250 Crs. To Rs. 6000 Crs. 2. Amendment to Articles of Association 3. Further Issue of Equity Shares to the Public MAHINDRA & Court Scheme of Arrangement between Mahindra Shubhlabh MAHINDRA LTD. Convened Services Ltd. and Mahindra and Mahindra Ltd. Meeting ZEE ENTERTAINMENT ENTERPRISES LTD. 1. Adoption of Accounts 2. Interim/ Final Dividend 3. Appointment of Directors( Mr. Goel, Mr. N C Jain & Prof R Vaidhyanathan) & Auditors(M/S MGB & Co) 4. Reappointment of M.D & CEO (Mr. Punit Goenka) 5. Payment of commission to Non-Executive Directors 6. Subdivision of Shares 7. Proposal for Issue of Bonus Shares Court Scheme of Arrangement between Pantaloon Retail (I) Convened Ltd and Future Value Retail Ltd. Meeting AGM 1. Adoption of Accounts 2. Declare Dividend 3. Appointment of Directors (Mrs. B Deshpade, Mr. V.K. Chopra, Mr. G. Biyani, Mr. K Bhatia) & Auditors 4. Increase in Equity Capital Postal Creation of Mortgage / Charge in favor of Banker(s), Ballot Mutual Fund(s), and other lenders to secure borrowings upto limit of Rs. 2500 Crores. Postal 1. Subdivision of Shares Ballot 2. Alteration of Memorandum of Association 3. Alteration of Articles of Association Postal Sub-division of 17,50,00,000 equity shares from face Ballot value of Rs 2/- per share to Re 1/- per share Postal Ballot 1. Inter corporate investment / loans/ deposits/ debt/ securities to specified companies. 2. Increasing limits of the Performance Bonus of Mr Milind Korde. 3. Increasing limits of flexible compensation of Mr. Pirojsha Godrej 1. To make investment / provide securities /guarantee under 372A for upto 10000 crores. 2. 293(1)(a) - transfer of substantial undertaking Preferential Issue of ordinary shares and warrants to Tata Sons Limited - Ordinary shares/ Warrants and 81(1A) 1. Re-appointment and Remuneration of MD (Mr. Chandak) 2. Split/ Subdivision of shares Corresponding amendment in MoA and AoA AGM

The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals exceptfor resolution on commission to directors to be abstained The Management is in favor of all the proposals The Management is in favor of all the proposals

For

For

For

29-Oct-10

For (to all proposals except for resolution on commission to directors to be abstained) For

3-Nov-10

PANTALOON RETAIL (INDIA) LTD.

For

6-Nov-10

UNITED BREWERIES (HOLDINGS) LTD. SUN PHARMACEUTICAL INDUSTRIES LTD. COROMANDEL INTERNATIONAL LTD GODREJ PROPERTIES LTD.

Abstain

8-Nov-10

3-Dec-10

7-Dec-10

The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals

For

For

For

10-Dec-10

GVK POWER & INFRASTRUCTURE LTD. THE INDIAN HOTELS COMPANY LTD KEC INTERNATIONAL LTD

Postal Ballot Postal Ballot Notice Postal Ballot Notice

13-Dec-10

18-Dec-10

The Management For is in favor of all the proposals The Management For is in favor of all the proposals The Management For is in favor of all the proposals

Abridged Annual Report 2010-11

28

MAGNUM SECTOR FUNDS UMBRELLA


Date Name of the Company Type of meeting Postal Ballot Proposals Management Recommendation The Management is in favor of all the proposals The Management is in favor of all the proposals Vote (For/Against/ Abstain) For

20-Dec-10

LUPIN LTD.

20-Dec-10

JAGRAN PRAKASHAN LTD.

Postal Ballot Postal Ballot Notice Postal Ballot Notice Postal Ballot Notice Postal Ballot Notice Postal Ballot Notice AGM

1. Re-appointment of Dr. Desh Bandhu Gupta as Executive Chairman and remuneration. 2. Re-appointment of Mrs. M. D. Gupta as Executive Director and remuneration thereof 81(1A) for ESOPs

For

20-Dec-10

STRIDES ARCOLAB LTD

20-Dec-10

TECH MAHINDRA LTD

1. Changes in articles subsequent to sale of shares by Venture Capital 2. Alteration of AoA amendment pursuant to exiting shareholder 81(1A) issue of 27 lakh shares under ESOPs

Abstain

21-Dec-10

FEDERAL BANK LTD

ESOP not exceeding 5% of paid up capital

22-Dec-10

SHOPPERS STOP LTD.

Subdivision of shares

22-Dec-10

TATA STEEL LTD

22-Dec-10

RELIANCE INFRASTRUCTURE LTD

27-Dec-10

28-Dec-10

10-Feb-11

Postal Ballot Notice GAMMON INFRASTRUCTURE Postal PROJECTS LTD. Ballot Notice MRF LTD. AGM

AGRE DEVELOPERS LTD.

Increase in authorized capital (amendment to MoA and AoA) Issue of further shares -81(1A) 1. Adoption of Accounts 2. Declare Dividend 3. Appointment of Directors(Mr. Jalan & Gen Malil) & Auditors ( Haribhakti & Co, Pathak H D, Price Waterhouse & Chaturvedi & Shah) 4. Payment of commission to non executive Directors. up to 3% of Net profits Main Object Clause to be amended to allow construction and developments activities 372A approval - Inter corporate investment / loans/ deposits securities to specified companies 1. To adopt B/s, P & L, Directors & Auditors Report. 2. Declare Dividend final dividend of 190% & Special dividend of 250% on paid up capital. 3. Appointment of Directors (Mr.Mammen, Mr.Kirloskar, Mr.Phillip, Mr.Mappillai, Mr. Vaidya) & Auditors (M/s.Sastri & Shah & M.M.Nissim & Co.) 4. Increase limit of borrowing powers upto 3000 crs. 5. approving mortgage/ creation of charge under section 293(1)(a) of the companies act,1956 1. Adoption of Accounts 2. Interim/ Final Dividend 3. Appointment of Directors(Mr.Mirza, Mr.Brar, Mr.Serafini, Mr. Doraisamy, Mr. Reiners, Mr. Brossard) & Auditors (M/s S R Batliboi & Co.) 4. Proposal for granting Restricted Stock Units 2011Plan 5. Payment of Remuneration to Non-Exe Directors Preferential allotment of 1,20,00,000 warrants convertible to equity share of Rs 1 each at a price of Rs. 57.25 to two companies forming part of the Promoter Group. Amendment of Memorandum to include objects linked to existing business 1. Routine Business. 2. Issue of further shares for a value of upto Rs.2,000 crore

The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals The Management is in favor of all the proposals except for payment of commission to be abstained

For

For

For

For

For (to all proposals except for payment of commission to be abstained) Abstain

The Management is in favor of all the proposals The Management is in favor of all the proposals

For

For

24-Feb-11

MPHASIS LTD.

AGM

Abstain

7-Mar-11

ORIENT PAPER & INDUSTRIES LTD.

EGM

The Management is in favor of all the proposals The Management is in favor of all the proposals

For

17-Mar-11

CARBONDUM UNIVERSAL LTD BAJAJ HINDUSTAN LTD

22-Mar-11

Postal Ballot Notice AGM

For

Abstain

Abridged Annual Report 2010-11

29

MAGNUM SECTOR FUNDS UMBRELLA


Date Name of the Company Type of meeting EGM Proposals Management Recommendation Vote (For/Against/ Abstain) For

24-Mar-11

SIEMENS LTD.

24-Mar-11

ZEE ENTERTAINMENT ENTERPRISES LTD. MCDOWELL HOLDINGS LIMITED

Postal Ballot EGM

25-Mar-11

26-Mar-11

BAJAJ CORP LTD.

26-Mar-11

GAMMON INDIA LTD

Postal Ballot Notice Postal Ballot Notice

28-Mar-11 29-Mar-11

PUNJAB NATIONAL BANK UNION BANK OF INDIA

EGM EGM

29-Mar-11

29-Mar-11

GLAXOSMITHKLINE CONSUMER HEALTHCARE LIMITED MERCK (INDIA) LIMITED

AGM

AGM

29-Mar-11

GLAXOSMITHKLINE PHARMACEUTICALS LTD.

AGM.

29-Mar-11

SHREE RENUKA SUGARS LTD.

AGM

29-Mar-11 31-Mar-11

BANK OF BARODA MRF LTD.

EGM Postal Ballot Postal Ballot

31-Mar-11

SHREE RENUKA SUGARS LTD.

The Management is in favor of all the proposals Resolution for buy back of equity shares by the company The Management under sectiion 77A of the Companies Act is in favor of all the proposals Proposal to issue 18laksh 10% Optionally Convertible Management Debentures of F.V of Rs.100/- to Kingfisher Finvest suggested to vote India Ltd. against for Two reasons: One, the stock trades at an 81% discount to the market value of its investments. Two, the price of conversion is uncertain; the stock being illiquid, the risk of conversion below current market price (which, itself, is not acceptable) is high Sub-division of shares from present Rs 5/- paid up to The Management Rs. 1/- paid up is in favor of all the proposals 1. To increase Number of Board of Directors from The Management 15 to 20 is in favor of all the 2. Approval to make/give loans, advances, ICDs to any proposals other body corporate 3. Ratification of Corporate Guarantee to ICICI Bank for USD. 15.5 Million Proposal to issue 3,63,68,024 equity shares of Rs.10/for cash at a premium of Rs.892.14 Proposal to issue 3,08,77,100 share to Govt of India The Management at SEBI determined prices. is in favor of all the proposals To adopt Audited a/cs, declare dividend, appoint The Management auditors(M/s. Price Waterhouse & Co.) and authorize is in favor of all BOD to fix auditors remuneration the proposals To adopt audited a/cs, appoint /reappoint Directors The Management (Mr.Bhabha, Mr. Shivkumar, Mr. Pimplikar)/auditor is in favor of all the (M/s. B.S.R. & Co.) proposals To adopt audited a/cs, appoint/reappoint Directors The Management (Mr.Nayak, Mr. Narayanan, Mr. D. Sundaram, is in favor of all the Mr. Kapadia)/auditor(M/s Price Waterhouse & Co.), proposals Declare Dividend on Equity Shares 1. To adopt audited a/cs, Re-appointment of directors The Management (Ms. Vidya, Mr. Kaluti, Mr. Yalgi) / Appointment of is in favor of all auditor, Declaration of dividend. the proposals 2. Special resolution for allotting 10,613,000 shares to employees and directors under ESOPs. Proposal to issue 3,63,68,024 equity shares of Rs.10/for cash at a premium of Rs.892.14 Ordinary Resolution for payment of increased The Management remuneration to Chairman and Managing Director is in favor of all the (Mr. Mammen) proposals 1. Alteration in the object clause of MOA of the Company. The Management 2. To allow the management to contribute to or to run is in favor of all and manage educational institutions. the proposals 3. To enable the company to provide corporate guarantees to Bank, Financial Institutions etc.

Resolution to issue and allot shares in compliance with the provisions of the Takeover code

For

Against

For

For

Abstain For

For

For

For

For

Abstain For

For

Abridged Annual Report 2010-11

30

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